Kathmandu. Nepal-India Chamber of Commerce and Industry (NICCI) welcomed the decision of the 13th meeting of the Nepal-India Joint Steering Committee on Energy Sector to significantly expand cross-border power transmission capacity between Nepal and India.

Nepal has agreed to export electricity from India from 1,100 MW to 1,650 MW and import capacity to 1,400 MW through Dhalkebar-Muzaffarpur and Dhalkebar-Sitamarhi 400 kV transmission line, paving the way for the export of additional 550 MW power from Nepal. This decision is another significant achievement in the Nepal-India Strategic Partnership and Energy Cooperation.

The progress made in strategic cross-border transmission infrastructure projects including Inaruwa-Purnia, Dodhodhara-Bareilly, Motihari-Nijgadh, Chameliya-Jauljibi and New Butwal-Gorakhpur is the result of mutual trust, understanding and cooperation between the governments of Nepal and India in the energy sector and reflects the shared commitment of both countries to further strengthen economic integration through sustainable economic development, regional energy security and cross-border power trade. We believe that such projects will contribute significantly to the development of a robust regional electricity market in South Asia and further strengthen the long-term energy partnership between Nepal and India.”

The association also welcomes the continued collaboration and joint investment of the Nepal Electricity Authority (NEA) and the Power Grid Corporation of India Limited (PGCIL) for the implementation of transmission projects. Such institutional partnerships will lay a strong foundation for further broadening and effective Nepal-India energy cooperation in the future.

Apart from the government-to-government cooperation, the association believes that the cooperation between the governments, public corporations and the private sector of Nepal and India needs to be further strengthened. The government-public corporation, public-private sector, public-corporation-public corporation, and private-private sector partnership will further accelerate investment, technology transfer and long-term cooperation in energy production, transmission infrastructure development and cross-border power trade.

While Nepal has immense hydropower potential, India’s fast-growing economy is a large and long-term market for clean and renewable energy. Recent decisions and developments have strengthened the complementary linkages between the two economies and instilled more confidence in long-term investments in hydropower generation, transmission infrastructure, and energy-based industries in Nepal.

The Association also stresses the need to advance rapid industrialization and economic transformation by making maximum utilization of Nepal’s growing power generation within the country.

The availability of reliable and affordable clean energy will accelerate the development of manufacturing industries, data centers, digital infrastructure, IT-enabled services, electric vehicles and other medium- and long-distance innovative transport infrastructure, including railways, green hydrogen and other emerging sectors. It will also contribute to global climate and sustainability efforts. The association believes that expansion of internal consumption of electricity and cross-border electricity export are complementary objectives that will ensure the optimum economic utilization of Nepal’s hydropower resources.

In this context, the Association urges leading public and private sector companies, institutional investors and energy developers in India to expand their investments in Nepal’s hydropower generation, transmission infrastructure, and energy-based industries. Such investments will not only accelerate Nepal’s industrial development but also contribute to the expansion of cross-border electricity trade and further strengthen Nepal-India economic partnership.

The association believes that an investment-friendly, stable and predictable policy environment will further encourage Indian investment in Nepal’s energy sector and contribute significantly to achieving the common goal of long-term energy cooperation between Nepal and India. Continued policy coordination, timely construction of cross-border transmission infrastructure, and effective cooperation between the two governments will play an important role in achieving the shared goal of significantly increasing Nepal’s electricity exports to India over the next decade. The association is confident that such collaboration would further strengthen Nepal-India relations to promote regional energy security, economic prosperity and sustainable development.

The Nepal-India Chamber of Commerce and Industry (NICCI) has reiterated its continued support to all efforts to further strengthen Nepal-India economic cooperation and to facilitate the active participation of the private sector in hydropower, transmission infrastructure, renewable energy technology and related sectors.