Nepal and India signed a Joint Venture and Shareholders’ Agreement on Wednesday to construct two high-capacity cross-border transmission lines. The deal marks a major step in strengthening bilateral power infrastructure and electricity trade between the two neighbors.
The Nepal Electricity Authority (NEA) and Power Grid Corporation of India Limited (PGCIL) inked the pact in New Delhi. The projects include 400 kV transmission lines connecting Inaruwa–Purnia and Lamki–Bareilly, aimed at improving energy exchange and grid reliability. The lines will be financed through 80% debt and 20% equity, shared between NEA and Power Grid.
Energy Minister Kulman Ghising said the projects will boost Nepal’s electricity exports to India and beyond. India’s Power Minister Manohar Lal Khattar noted the initiative will strengthen regional energy security and economic growth. Each country will build its respective sections through joint venture firms.
Currently, the Dhalkebar–Muzaffarpur line is the only operational 400 kV link between the two nations. With India agreeing to buy 10,000 MW from Nepal over the next decade, the new transmission lines will be vital to achieving this target.
