Kathmandu: Nepal and India have signed a Joint Venture and Shareholders’ Agreement to construct the Inaruwa–Purnia and Lamki (Dododhara)–Bareli 400 kV cross-border transmission lines, marking a major milestone in strengthening regional energy cooperation.
The agreement was signed in New Delhi on October 29 in the presence of Nepal’s Minister for Energy, Water Resources and Irrigation Kulman Ghising, and India’s Minister for Power Manohar Lal Khattar.
Also attending the signing ceremony were Nepal’s Ambassador to India Shankar Prasad Sharma, India’s Power Secretary Pankaj Agrawal, and senior officials from both countries. The agreement was signed by Subhash Kumar Mishra, Deputy Executive Director of the Nepal Electricity Authority (NEA), and Sanjay Kumar Gupta, Chief Operating Officer of Power Grid Corporation of India Limited (PGCIL).
With this agreement, a joint company will be established to construct the transmission lines with investment from NEA and Power Grid. NEA will hold 51 percent shares in the company to be registered in Nepal and 49 percent in the company to be registered in India, while Power Grid will hold the remaining shares. The projects will be financed with 80 per cent debt and 20 percent equity.
Minister Ghising said the construction of the two cross-border transmission lines is another significant step in enhancing bilateral and regional electricity trade, opening avenues for exporting surplus power and attracting domestic and foreign investment in Nepal’s hydropower sector.
Minister Khattar emphasized that the projects will substantially strengthen electricity exchange between Nepal and India, improve regional energy security, and contribute to the economic growth of both countries.
The Inaruwa–Purnia line will span about 26 km in Nepal and 109 km in India, while the Lamki–Bareli line will cover about 33 km in Nepal and 185 km in India. According to a 2019 joint technical study, the initial estimated cost of the Inaruwa–Purnia line is NPR 2.65 billion for Nepal’s section and INR 4.13 billion for India’s section, while the Lamki–Bareli line is estimated to cost NPR 2.57 billion and INR 6.14 billion, respectively. The construction of both transmission lines is targeted for completion by 2030.
Currently, the 400 kV Dhalkebar–Muzaffarpur transmission line is operational for cross-border electricity trade, while the Butwal–Gorakhpur line is under construction. Nepal and India have also agreed to build a 220 kV Chameliya–Jauljibi line connecting western Nepal to Uttarakhand, India.
The NEA currently exports about 1,000 MW of electricity daily to India and Bangladesh through existing 400 kV and 132 kV transmission networks.
