Nepal and India signed a significant agreement on Tuesday, April 22, to expand cross-border electricity transmission infrastructure, further strengthening bilateral energy cooperation.
The signing took place in Kathmandu in the presence of Nepal’s Minister for Energy, Water Resources and Irrigation, Deepak Khadka, and India’s Minister for Power, Manohar Lal Khattar, who also oversees the Housing and Urban Affairs portfolio.
This development follows the 12th meeting of the Nepal–India Joint Steering Committee on Energy Cooperation, held earlier this year in New Delhi. During that session, both sides agreed to establish joint venture companies for the development of two high-capacity 400 kV transmission lines: the Inaruwa–New Purnia and the Dodhara–Bareilly.
The formal agreement was signed by Kamal Acharya, Director of the Nepal Electricity Authority (NEA), and Dr. Yatindra Dwivedi, Director of India’s Power Grid Corporation. Under the terms, Nepal will hold a 51% stake in the joint venture operating within its territory, while India will hold a 51% stake in the corresponding company established in its own territory. The remaining 49% ownership in each will be held by the other country.
The Inaruwa–New Purnia transmission line will span approximately 25 kilometers in Nepal and 100 kilometers in India. The Dodhara–Bareilly line will extend about 35 kilometers within Nepal and 150 kilometers in India.
Minister Khadka hailed the agreement as a “milestone” in Nepal–India energy cooperation, expressing gratitude to India for its continued support in Nepal’s hydropower sector. He noted that the infrastructure represents not just physical connectivity but also a shared journey toward mutual trust and sustainable development.
Khattar, for his part, emphasized that the progress in cross-border energy collaboration underscores the growing depth of bilateral ties. He referenced the 2022 Joint Vision Statement on Power Sector Cooperation, highlighting notable progress across its three key pillars: joint power generation, cross-border infrastructure development, and electricity trade.
He also noted that the construction of the Gorakhpur–Butwal transmission line is now underway and will bolster future power-sharing initiatives. The export of Nepali electricity to Bangladesh via Indian transmission lines last year, he said, marked a historic milestone in regional energy trade.
