Nepal and India sign agreement to construct two cross-border transmission lines

Kathmandu, Oct 29: Minister for Energy, Water Resources, and Irrigation, Kulman Ghising, who is presently in New Delhi, India, to attend the 8th General Assembly of the International Solar Alliance, held a meeting today with India’s Power Minister, Manohar Lal Khattar.

During the meeting, the two ministers discussed Nepal-India energy cooperation, power trade, the expansion of transmission lines, progress on Nepal’s under-construction power projects funded by India, and the long-term power partnership between the two countries, according to Minister Ghising’s secretariat.

Meanwhile, Nepal and India have signed a joint venture (JV) and shareholder agreement for the construction of two cross-border transmission lines. According to the Ministry of Energy, the agreement aims to construct 400 kV cross-border transmission lines connecting Inaruwa–Purnia and Lamki–Dodhara–Bareli.

Nepal Electricity Authority (NEA) Deputy Executive Director Subhash Kumar Mishra and Chief Operating Officer Sanjay Kumar Gupta at Power Grid Corporation of India Limited signed the agreement on behalf of their respective sides, in the presence of the two ministers. 

On the occasion, Minister Ghising described the agreement as a significant achievement for bilateral and regional power trade. He stated that it will help Nepal gain access to the international energy market and attract domestic and foreign investment in Nepal’s hydropower development and expansion sectors, urging India to further invest in the sector.

Minister Khattar expressed the view that once the two additional cross-border transmission lines are completed, the electricity exchange process between Nepal and India will become smoother. He added that it would enhance regional energy security through a stronger grid and contribute to the economic growth of both countries.

Earlier, on October 16, the Cabinet had approved granting the authority to establish two joint companies: one in Nepal and one in India for the construction of transmission lines, with investment from both NEA and Power Grid Corporation of India. The Cabinet also approved making equity investments in these companies. (RSS)