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Despite occasional fluctuations in overall trade relations, Nepal and India have achieved steady year-by-year progress in energy cooperation. Moving up from the previous export limit of 1,200 MW (which includes a 40 MW allocation to Bangladesh), the Indian side has now agreed to allow up to 1,650 MW.

Because Nepal's current power generation stands at 4,400 MW against a domestic demand of roughly 2,400 MW, India's agreement to increase the quota is crucial for avoiding wasted, spilled energy. However, implementation may take some time, as India has yet to approve the specific list of hydropower projects eligible for these new exports.

To support this expanded trade, both nations are upgrading their technical infrastructure. At the JSC meeting in Pokhara, both countries agreed to maximize the utilization of existing cross-border transmission lines and construct new ones to facilitate higher volumes of electricity trade.

The meeting was co-chaired on July 15 by Sarita Dawadi, Secretary of Nepal's Ministry of Energy, Water Resources and Irrigation, and Pankaj Agarwal, Secretary of India's Ministry of Power. The delegation finalized five key agreements focused on strengthening transmission infrastructure, building upon recommendations from the Joint Working Group (JWG) meeting held the previous day on July 14. The JWG meeting was co-chaired by Sandeep Kumar Dev, Joint Secretary of Nepal's Ministry of Energy, and his Indian counterpart, Pankaj Kumar.

During a recent Joint Steering Committee (JSC) meeting at the energy secretary level, India agreed to import an additional 550 MW of electricity from Nepal, bringing Nepal's total export capacity to India to 1,650 MW.

Previously, power trade relied solely on the Dhalkebar–Muzaffarpur 400 kV line, which capped imports at 1,000 MW and exports at 1,100 MW. By incorporating the Dhalkebar–Sitamarhi 400 kV transmission line, the committee boosted Nepal’s import capacity to 1,400 MW and opened immediate doors for the expanded exports. The meeting also approved a Detailed Project Report (DPR) to upgrade the technical capacity of these lines using High-Temperature Low-Sag (HTLS) conductors.

The committee advanced several other cross-border transmission projects, including approving the DPRs for the Motihari–Nijgadh 400 kV line and the Chameliya (Nepal)–Jhulaghat (India) 220 kV double-circuit line, the latter targeted for completion by 2028. Both sides also agreed to conduct technical studies for a proposed Lucknow–Kohalpur/Lamahi line.

To build the New Inaruwa–Purnia 400 kV and Dododhara (New Lamki)–Bareilly 400 kV lines, officials agreed to fast-track a joint venture company, following recently signed shareholder agreements between the Nepal Electricity Authority (NEA) and the Power Grid Corporation of India.

Finally, the committee cleared the implementation path for the New Butwal–Gorakhpur 400 kV transmission line, which will initially handle 130 MW of imports and 200 MW of exports. While the Nepal section of the line will be finished this August, the New Butwal substation will not be ready until December 2027. To avoid delays, the line will temporarily operate at 220 kV as soon as construction wraps up, allowing early use before full 400 kV operations begin.

The secretary-level meeting was co-chaired by Nepal’s Energy Secretary Sarita Dawadi and India’s Power Secretary Pankaj Agrawal.

The two delegations reviewed ongoing cross-border power trading via the operational Dhalkebar–Muzaffarpur 400 kV transmission line and approved recommendations from Tuesday’s joint secretary-level working group meeting. That preliminary session was led by Nepal’s Energy Joint Secretary Sandeep Kumar Dev and India’s Power Joint Secretary Pankaj Kumar.

A major outcome of the meeting is India's agreement to facilitate additional electricity transmission, helping the Nepal Electricity Authority (NEA) mitigate the wastage of surplus power during the rainy season. Currently, the NEA is capped at exporting just over 1,100 megawatts during the monsoon.

To support Nepal's winter energy needs, India also agreed to provide an additional 400 megawatts during the dry season. This expands Nepal's permitted import capacity from India from 1,000 megawatts to 1,400 megawatts. According to Nepal's Ministry of Energy, the two nations agreed to boost combined power transfer capacities specifically through the Dhalkebar–Muzaffarpur and Dhalkebar–Sitamarhi 400 kV transmission lines.

Additionally, the secretaries approved the Detailed Project Report (DPR) for a new 220 kV double-circuit cross-border transmission line connecting Chameliya in Nepal to Dhauli Ganga in India, with a target completion date of December 2028.

The Nepal Electricity Authority (NEA) and the Power Grid Corporation of India have signed shareholder and joint venture (JV) agreements to construct two 400 kV cross-border transmission lines: the Inaruwa–New Purnia line and the Dodhara (New Lamki)–Bareilly line. Both sides agreed to expedite the establishment of a joint venture company to fast-track these projects.

Additionally, officials reached an agreement to build the cross-border transmission infrastructure necessary to support Nepal’s planned electricity exports to India by fiscal year 2034/35. As part of this expansion, the Detailed Project Report (DPR) for the Motihari (India)–Nijgadh (Nepal) 400 kV double-circuit transmission line was approved.

The meeting also approved a DPR to upgrade the capacity of the existing Muzaffarpur–Dhalkebar 400 kV transmission line using High Temperature Low Sag (HTLS) conductors. Meanwhile, a decision on the proposed Lucknow (India)–Kohalpur/Lamahi (Nepal) 400 kV line was deferred pending further technical studies.

Progress on the New Butwal–Gorakhpur 400 kV cross-border transmission line is also moving forward. The Ministry of Energy, Water Resources, and Irrigation stated that the Nepal section of the line is slated for completion by August, while the New Butwal 400 kV substation is expected to be finished by December 2027. To utilize the infrastructure early, a technical agreement was reached to operate the line temporarily at 220 kV. This temporary configuration will allow Nepal to import up to 130 megawatts or export up to 200 megawatts of electricity.

Public Reactions

Kulman Ghising, the Managing Director of the NEA, welcomed the breakthroughs achieved during the 13th Nepal–India Energy Secretary-Level Joint Meeting held in Pokhara on July 15. In a social media statement, Ghising called the bilateral energy trade framework highly significant for Nepal's economic future.

The cross-border trading initiative, which gained substantial momentum during Ghising's tenure at the NEA, has secured a valuable export market for Nepal's surplus clean energy. Driven by these expanding cross-border connections, Nepal generated Rs. 23 billion from electricity exports to India last year.

He said that Pokhara Talks Propel Nepal’s Vision to Export 10,000 MW of Electricity. “The meeting achieved major milestones in expanding bilateral electricity trade and cross-border transmission infrastructure,” said Ghising.

Ghising noted that the infrastructure upgrades will significantly boost import and export capacities. "For Nepal, which possesses immense hydropower potential, these agreements reinforce the country's foundation to emerge as a South Asian hub for clean and green energy," Ghising stated.

In a social media post, Ghising added that while many agenda items continued previous agreements, the meeting opened fresh opportunities to connect Nepal's energy sector to regional markets. "The shared responsibility now is to ensure these agreements move beyond paper and are implemented without delay," he wrote. He also emphasized that the Government of Nepal must modernize the domestic transmission and distribution grid to boost local consumption. "During the monsoon season, after meeting domestic demand, surplus electricity should be exported to India, Bangladesh, and eventually China. Achieving this requires stronger political, administrative, and diplomatic initiatives."

Minister Shrestha Hailed Decision

Minister for Energy, Water Resources, and Irrigation, Biraj Bhakta Shrestha, hailed the progress as a critical step toward Nepal's long-term goal of exporting 10,000 megawatts (MW) of electricity to India. The meeting concluded with agreements to increase export capacity, accelerate the construction of new transmission lines, and develop infrastructure required for sustained energy trade.

The 13th meeting of the Nepal–India Joint Steering Committee (JSC) on Energy Cooperation yielded far-reaching decisions to expand cross-border transmission infrastructure and boost electricity trade. The agreements aim to increase Nepal's power export capacity to India, accelerate the construction of new transmission lines, and develop the necessary infrastructure for long-term energy trading.

Minister for Energy, Water Resources, and Irrigation, Biraj Bhakta Shrestha, expressed confidence that the meeting has paved the way for expanding Nepal's clean energy exports to the Indian market. He noted that this expansion will significantly reduce Nepal's trade deficit, boost foreign exchange earnings, and strengthen the national economy.

Prior to the JSC meeting, Minister Shrestha held courtesy meetings with India's Power Secretary Pankaj Agarwal and Additional Foreign Secretary Munu Mahawar, emphasizing the need for result-oriented cooperation. He pointed out that a broader electricity market would encourage greater Indian investment in Nepal's hydropower sector and urged India to facilitate increased electricity exports.

Additionally, the Minister stressed that both nations must work jointly to develop transmission infrastructure alongside generation capacity. He highlighted that Nepal's water resources extend beyond energy production, playing a vital role in human civilization, environmental conservation, and sustainable development.

Ganesh Karki, former president of the Independent Power Producers' Association, Nepal (IPPAN), also welcomed the outcomes, emphasizing that India remains a vital, massive market for Nepal’s burgeoning hydropower sector.

According to the Ministry, the capacity of the Dhalkebar–Muzaffarpur 400 kV cross-border transmission line will increase from 1,000 MW to 1,400 MW for imports and 1,650 MW for exports. This adjustment follows a joint technical team study and recommendations from the Joint Working Group (JWG).

To strengthen long-term energy trade, the meeting approved the Detailed Project Reports (DPRs) for several cross-border transmission lines and agreed to begin construction. This includes the DPR for the Chameliya–Dhauliganga 220 kV double-circuit transmission line in Nepal's Far Western region, which has a completion target of December 2028.

Additionally, officials decided to fast-track a joint company between the Nepal Electricity Authority (NEA) and India's Power Grid Corporation to construct the Inaruwa–New Purnea and Dododhara (New Lamki)–Bareilly 400 kV transmission lines. The committee also finalized plans for the additional infrastructure required to support larger-scale electricity exports from Nepal by 2035.

Other key infrastructure decisions include approving the DPR for the Motihari–Nijgadh 400 kV double-circuit transmission line, endorsing a plan to boost the Muzaffarpur–Dhalkebar line's capacity by installing higher-capacity conductors and agreeing to fast-track feasibility studies for the Lucknow–Kohalpur–Lamahi 400 kV transmission line.

While workers expect to finish the Nepali section of the New Butwal–Gorakhpur 400 kV transmission line by August 2026, the New Butwal substation will not be ready until December 2027. Consequently, both sides agreed to temporarily operate the line at 220 kV. Under this interim setup, Nepal can immediately import up to 130 MW and export up to 200 MW.

The Joint Steering Committee (JSC) and the JWG, both established under the Nepal–India Power Trade Agreement, continue to facilitate these energy cooperation and infrastructure projects.

Major Highlights

A combined total of 1,650 MW of electricity can be exported through the Dhalkebar–Muzaffarpur and Dhalkebar–Sitamarhi transmission lines.

The Detailed Project Reports (DPRs) for the Motihari–Nijgadh 400 kV and Chameliya–Jauljibi 220 kV cross-border transmission lines have been approved.

The capacity of the Dhalkebar–Muzaffarpur transmission line will be increased by using High-Temperature Low-Sag (HTLS) conductors.

Additional technical studies will be carried out for the construction of the Lucknow–Kohalpur/Lamahi 400 kV transmission line.