Nepal / India: Nepal and India have signed a joint venture and shareholder agreement to construct two 400 kV transmission lines aimed at expanding electricity trade and enhancing regional grid connectivity.
The projects – the Inaruwa (Nepal)–New Purnea (India) and Lamki (Dodhara, Nepal)–Bareilly (India) 400 kV double-circuit transmission lines – are designed to boost energy exchange, improve grid stability, and support sustainable economic growth on both sides of the border.
The agreement was signed in New Delhi in the presence of Nepal’s Energy Minister Kulman Ghising and India’s Power Minister Manohar Lal Khattar. Representatives from the Nepal Electricity Authority (NEA) and Power Grid Corporation of India Limited formalised the deal, which paves the way for establishing two joint venture companies to build the transmission infrastructure.
Ghising described the signing as “another milestone in Nepal–India power cooperation,” noting that the new lines will enable Nepal to access wider regional energy markets and attract hydropower investment. Khattar said the initiative will make electricity exchange between the two countries more reliable and help strengthen regional energy security.
Construction is expected to be completed by 2030, with NEA and Power Grid each holding a 51–49 % ownership split in their respective national sections.
The projects build on ongoing efforts such as the operational Dhalkebar–Muzaffarpur and under-construction Butwal–Gorakhpur 400 kV links, further reinforcing South Asia’s growing cross-border power network.
Source: The Kathmandu Post
