Kathmandu- Indian Union Power Minister Manohar Lal Khattar on a two-day Nepal trip starting today, aimed at strengthening energy ties and encouraging Indian investment in Nepal’s hydropower sector.
Khattar is visiting at the invitation of Nepal’s Energy Minister Deepak Khadka. His trip comes amid concerns that Indian investors have become hesitant about Nepal’s investment climate.
During his visit, Khattar will attend high-level meetings and participate in the inauguration of key power infrastructure developed with Indian support. These include the 220 kV Inaruwa-Basantpur-Baneshwar-Tumlingtar transmission line and substations in Tumlingtar, Baneshwar, and Basantpur.
He will also inspect the powerhouse and dam site of the India-backed Arun III hydropower project. Officials from both countries are set to sign a joint venture agreement to build a new cross-border transmission line.
Energy Minister Khadka said Nepal is seeing renewed interest from Indian investors and that the government is actively working to create a favorable environment.
'The government is committed to bringing in Indian investment, and we’re expecting positive outcomes soon,' he said.
India recently resumed nighttime electricity supply to Nepal, easing power shortages in industries. It has also allowed Nepal to export electricity to Bangladesh via Indian transmission lines. Nepal exported 40 MW to Bangladesh last November, and further discussions are expected given rising regional tensions.
The visit will prioritize five key areas, including reviving stalled projects and unlocking large-scale Indian investments. Discussions will cover major undertakings such as the 10,800 MW Karnali-Chisapani and the 5,500 MW Pancheshwar projects, which have been delayed for years.
India has also shown renewed interest in the 1,063 MW Upper Arun project. SJVN Limited, an Indian public company, has proposed to build it, though India is pushing for design changes to avoid downstream impact if funded by the World Bank.
Indian billionaire Gautam Adani’s group shown interest to invest in Nepal’s hydropower sector, with proposals covering more than 3,800 MW across multiple projects, including Tila-1, Tila-2, Fukot Karnali, and Mugu Karnali. Adani has also proposed building Nepal’s first 765 kV East-West transmission line.
Nepal’s energy officials believe the visit marks a turning point in regional energy collaboration. Indian investments currently in the pipeline span over 24,000 MW of capacity, potentially bringing over Rs 1.5 trillion into Nepal’s hydropower and transmission sectors.
