Much to the relief of industries facing extended hours of power outage, the Government of India has approved the export of up to 600 MW of electricity to Nepal from Indian power exchanges via the Muzaffarpur-Dhalkebar transmission line during the hours of midnight to 4 AM, 6 AM to 5 PM, and 11 PM to midnight.

According to diplomatic sources, the Nepal Electricity Authority (NEA) will also be able to import an additional 54 MW of power through the Tanakpur-Mahendranagar transmission line from 6 AM to 6 PM. With this arrangement, the total duration during which Nepal can import electricity from India has increased to 16 hours per day, up from the previous 12 hours.

Sources said this accommodation was granted despite a surge in domestic power demand in India, citing the special bilateral ties and India’s Neighbourhood First Policy.

On March 20, Nepal had formally requested India to supply 230 MW of electricity during the evening hours in a bid to mitigate the escalating power crisis.

At present, Nepal’s industrial sector is experiencing up to 12 hours of daily load-shedding. Although Nepal imports over 700 MW of electricity from India daily, the supply has been restricted to between 6 AM and 6 PM, adversely affecting industrial operations.

In its recent appeal, Nepal asked for India’s support in supplying electricity between 6 PM and 10 PM, when power shortages are most severe. The request followed Energy Minister Deepak Khadka’s announcement that Nepal would face evening power cuts due to supply shortfalls.

Nepal’s current domestic electricity generation stands at around 1,000 MW even though the installed capacity stands at 3300 MW. The power crisis has deepened as hydropower production declines during the dry season, making evening imports from India crucial.

Most of Nepal’s hydropower projects are ‘run-of-the-river’ types, which significantly reduce output to around 1,000 MW during the dry months. This seasonal fluctuation has prompted the government to prioritize the development of large-scale hydropower projects to ensure long-term energy stability.

To address the demand, the NEA had initiated efforts to procure electricity from India’s exchange market. However, with imports previously permitted only during ‘solar hours,’ the industrial sector continued to face acute power shortages.