Kathmandu- Nepal and India have agreed to expand cross border electricity trade by increasing the power import and export capacity to up to 1,650 MW, while accelerating the development of new cross border transmission infrastructure.

The agreement was reached during the 13th meeting of the Nepal India Joint Steering Committee (JSC) on Energy Cooperation, held in Pokhara. The meeting endorsed key decisions on electricity trade, cross border transmission lines and hydropower exports.

The meeting was co chaired by Sarita Dawadi, Secretary at Nepal's Ministry of Energy, Water Resources and Irrigation, and Pankaj Agarwal, Secretary at India's Ministry of Power. According to the ministry, the JSC approved recommendations made by the Joint Working Group (JWG) to expand bilateral electricity trade.

At present, up to 1,000 MW of electricity is traded through the existing 400 kV Dhalkebar Muzaffarpur cross border transmission line. Based on a study conducted by the Joint Technical Team (JTT), the two sides agreed to increase the import capacity to 1,400 MW and the export capacity to 1,650 MW.

The meeting also approved the Detailed Project Report (DPR) for the 220 kV double circuit Chameliya Dhauliganga cross border transmission line in far western Nepal, with a target to complete construction by December 2028.

The two countries also agreed to expedite the establishment of a joint venture company to develop the proposed 400 kV Inaruwa New Purnea and Dodhodhara (New Lamki) Bareilly cross border transmission lines. The process will move forward in line with the shareholder and joint venture agreements already signed between the Nepal Electricity Authority and Power Grid Corporation of India.

To support Nepal's long term goal of exporting large volumes of electricity by 2034 to 2035, the meeting approved the DPR for the proposed 400 kV double circuit Motihari Nijgadh transmission line. It also endorsed a proposal to upgrade the capacity of the existing Muzaffarpur Dhalkebar transmission line by installing higher capacity conductors.

The two sides agreed to carry out further technical studies on the proposed 400 kV Lucknow Kohalpur or Lamahi transmission line before taking a final decision.

Regarding the under construction 400 kV New Butwal Gorakhpur transmission line, Nepal aims to complete its section by August 2026. However, as the New Butwal 400 kV substation is expected to be completed only by December 2027, both sides agreed to operate the transmission line temporarily at 220 kV.

Under this interim arrangement, the line will allow the import of up to 130 MW of electricity and the export of up to 200 MW until the substation becomes operational.

The Joint Steering Committee and Joint Working Group were established under the Nepal India Power Trade Agreement signed in 2014. According to the ministry, the decisions taken at the Pokhara meeting are expected to strengthen Nepal's hydropower export capacity, accelerate the development of cross border transmission infrastructure and deepen long term bilateral energy cooperation.