In a significant move to enhance cross-border energy cooperation, Nepal and India have reached a crucial agreement on the modality of two 400 kV cross-border transmission lines. This development marks a new chapter in the energy partnership between the two nations, paving the way for improved electricity trade and infrastructure development.
The 12th meeting of the Nepal-India Energy Secretary-Level Joint Steering Committee, held in New Delhi on Tuesday, concluded with a landmark agreement on the Inaruwa-New Purnia and Dodhara-Bareilly transmission lines. The agreement outlines a joint ownership structure, with Nepal Electricity Authority holding 51% and India's Power Grid Corporation holding 49% on the Nepali side. Conversely, the Indian side will see Power Grid Corporation with 51% ownership and Electricity Authority with 49%.
The two transmission lines are scheduled for completion by FY 2028/29 and FY 2029/30, respectively. This timeline underscores the commitment of both nations to expedite the development of critical energy infrastructure. The establishment of the joint project company is expected to be completed within the next month, ensuring a swift start to the project.
The meeting also addressed the need to increase the electricity import-export capacity through the currently operational Dhalkebar-Muzaffarpur 400 kV transmission line. The capacity will be upgraded from 800 MW to 1,000 MW, reflecting the growing demand for reliable energy exchange between the two countries.
Looking ahead, the detailed project report (DPR) for the 220 kV double circuit transmission line between Chamelia (Nepal) and Jauljibi (India) is set to be completed by March. The construction of the Nepali section of this line will be finalized by December 2027. Additionally, plans for further cross-border transmission lines are underway, with detailed project reports prepared for lines scheduled for completion by 2034/35. These projects aim to facilitate increased electricity exports from Nepal to India, bolstering economic ties and energy security.
The meeting also approved the replacement of high-capacity HDLS conductors in the Dhalkebar-Muzaffarpur 400 kV transmission line by 2034/35. This upgrade will enhance the efficiency and capacity of the existing infrastructure, ensuring a robust energy transmission network.
To ensure smooth implementation, both countries have formed a secretary-level committee and a joint secretary-level task force. These bodies will oversee the progress of the projects and facilitate the necessary directives for the agreement's execution, as per the provisions of Article 5 of the Nepal-India Electricity Trade Agreement concluded in 2014.
