India and Nepal have taken a decisive step towards deepening energy cooperation, signing two landmark agreements to expand cross-border power transmission infrastructure and strengthen regional grid connectivity.
The pacts, signed in New Delhi between India’s POWERGRID Corporation and the Nepal Electricity Authority (NEA), envisage the establishment of high-capacity 400 kV transmission corridors linking Inaruwa (Nepal) with New Purnea (India), and Lamki (Dododhara) (Nepal) with Bareilly (India). The signing took place in the presence of Union Power and Housing & Urban Affairs Minister Manohar Lal Khattar and Nepal’s Minister for Energy, Water Resources and Irrigation, Kulman Ghising.
Under the agreements, two joint venture entities, one in India and another in Nepal, will be incorporated to develop and operate the cross-border transmission systems. Once commissioned, these projects are expected to significantly enhance electricity exchange between the two countries, bolster grid stability and advance the region’s clean energy transition.
“In the august presence of Shri Manohar Lal Khattar and Shri Kulman Ghising, Joint Venture and Shareholders' Agreements (JV&SHA) were signed between POWERGRID, a Maharatna Central Public Sector Enterprise (CPSE) of India, and the Nepal Electricity Authority (NEA). These agreements are for the incorporation of two joint venture entities - one in India and one in Nepal - for the development of high-capacity cross-border power transmission infrastructure,” the Ministry of Energy said in a statement.
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The proposed links, Inaruwa-New Purnea and Lamki (Dododhara)-Bareilly, are designed as 400 kV Double Circuit (Quad Moose) transmission lines, which will facilitate seamless power trade and promote regional energy security.
During their meeting, the two ministers also reviewed ongoing hydropower projects in Nepal and discussed broader initiatives for regional grid connectivity aimed at integrating clean energy resources across South Asia.
Both sides reaffirmed their commitment to expanding energy partnership, describing the latest developments as an important milestone in their long-standing cooperation in the power sector.
“Today's meeting reinforces the growing momentum in India-Nepal energy cooperation, building upon decades of diplomatic ties and a shared commitment to sustainable development and energy security,” the official statement added.
The agreements come at a time when India has been steadily expanding its power trade partnerships with neighbouring countries, positioning itself as a regional hub for clean and affordable electricity exchange.
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