New Delhi. KATHMANDU: Nepal and India have signed a Joint Venture (JV) and Shareholders’ Memorandum of Understanding (MoU) for the construction of Inaruwa-Purnia and Lamki-Dododhara-Bareilly 400 KV inter-country transmission line.

Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport, and Urban Development Minister Kulman Ghising signed the MoU in the presence of Indian Minister for Power Manohar Lal Khattar.

The ceremony was signed by Nepal’s Ambassador to India Shankar Prasad Sharma, India’s Energy Secretary Pankaj Agrawal, Additional Secretary at the Ministry of External Affairs and Joint Secretary at the Ministry of Energy, Water Resources and Irrigation, Sagar Raj Gautam, among others.

The agreement was signed by Deputy Executive Director of Nepal Electricity Authority (NEA) Subhash Kumar Mishra and International Business Chief Operating Officer of Power Grid Corporation of India Limited Sanjaya Kumar Gupta.

The agreement for joint investment has paved the way for the establishment of a company to construct both transmission lines with the investment of NEA and Power Grid.

Minister Ghising said that construction of two more cross-border transmission lines is another important milestone for bilateral and regional power trade. He was of the view that the construction of the inter-country transmission line would create a base to export electricity produced in Nepal at regional level and also at the regional level and it would further help in bringing domestic and foreign direct investment in Nepal’s hydropower sector by creating Nepal’s access to international energy market.

On the occasion, Minister Khattar said that the completion of the two cross-border transmission lines would substantially strengthen the electricity exchange between Nepal and India, improve regional energy security, and contribute to the economic growth of the two countries.

The meeting of the Council of Ministers on October 30 had given approval to the NEA to establish two joint ventures in both Nepal and India with the investment of Nepal Electricity Authority (NEA) and Power Grid for the construction of the transmission line.

On the occasion, Minister Ghising said that the construction of two more inter-country transmission lines would create a base to export electricity produced in Nepal at regional level and also create a base for export of electricity produced in Nepal and also at the regional level so that Nepal’s access to international energy would further facilitate in bringing domestic and direct investment in Nepal’s hydropower.

NEA will have 49 percent stake in the company to be established in India for the construction of two transmission lines in the Indian territory, while Power Grid will have 51 percent stake. Similarly, NEA will have 51 percent share in the joint company to be established in Nepal and 49 percent of Power Grid.

The financing will be 80 per cent loan and 20 per cent share capital. The 26 km section of the Inaru-Purnia transmission line lies in the Nepali territory and 109 km in the Indian territory. Of the transmission line, around 33 km Nepali and 185 km section of the transmission line will be built on the Indian side.

According to a study report prepared by Nepal-India joint technical team in 2019, the initial cost of the Inaruwa-Purnia transmission line is estimated to be Rs 2.65 billion and Indian Indian rupees respectively.

Similarly, the initial estimated cost of the Lamki-Bareilly transmission line in Nepal is Rs 2.57 billion and Rs 6.14 billion respectively. NEA will invest equity of Rs 1 billion and Rs 2 billion in the joint venture to be established in Nepal and India.

The meeting of the Energy Secretary level Joint Directive Committee held in New Delhi, India on February 11, 2025 agreed on the transmission line construction, operation and investment modality as per the agreement on power trade, inter-country transmission line coordination and operation coordination and operation of the project. After several rounds of discussions, NEA and Babur Grid had signed a memorandum of understanding (MoU) on April 22, 2025 to establish a joint company for the construction of the transmission line. Both lines are expected to be completed by 2030.

Currently, the first 400 kV Dhalkebar-Muzaffarpur cross-border transmission line is in operation. The Butwal-Gokharpur second inter-country transmission line is under construction. The two countries have already agreed to construct a 220 KV transmission line from Chameliya of Nepal to Jailijibi of Uttarakhand, India.

Similarly, there are 132, 33 and 11 KV transmission lines in Bihar, Uttar Pradesh and Uttarakhand of India. Currently, NEA has been exporting 1,000 MW of electricity to India and Bangladesh by using the 400 KV and 132 KV transmission line structures.

Kulman Ghising meets Indian Minister for Electricity Manohar Lal Khat

tar

Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport, and Urban Development Minister Kulman Ghising held a meeting today and Indian Minister for Electricity, Manohar Lal Khattar.

Minister Ghising is currently in New Delhi to attend the eighth general assembly of the International Solar Alliance (ISA).

During the meeting, matters related to energy cooperation between Nepal and India, electricity trade, transmission line expansion, progress of hydropower projects under construction with Indian investment and long-term energy partnership between the two countries were discussed.

Nepal’s Ambassador to India Shankar Prasad Sharma, Indian Energy Secretary Pankaj Agrawal, Additional Secretary at the Ministry of External Affairs and Joint Secretary at the Ministry of Energy, Water Resources and Irrigation, Sagar Raj Gautam, among others were present during the meeting.