On October 29,2025, India and Nepal signed agreements to develop two new high-voltage cross-border power transmission lines, aimed at enhancing electricity trade and deepening regional energy cooperation.
- The Joint Venture and Shareholders’ Agreements (JV&SHA) were signed between India’s Power Grid Corporation of India (POWERGRID), a Maharatna Central Public Sector Enterprise (CSPE) of India, and Nepal’s Nepal Electricity Authority (NEA) in the presence of Union Minister Manohar Lal, Ministry of Power(MoP) and Kulman Ghising, Minister for Energy, Water Resources and Irrigation of Nepal, in New Delhi(Delhi).
Exam Hints:
- What? Agreement signed
- Between: Nepal and India
- Institutions: POWERGRID and NEA
- Purpose: To establish two JV for developing 2 cross-border power transmission lines.
- Projects:
- Inaruwa (Nepal) – New Purnea (India) 400 kV Line
- Lamki (Dodhara, Nepal) – Bareilly (India) 400 kV Line
- Target Year: Completion by 2030
- Goal: To support India’s plan to import 10,000 MW of power from Nepal over the next decade.
Key Details of Agreements:
Aim: To boost regional energy trade and grid connectivity between two countries.
Power Trade Goal: The agreement supports India’s plan to import 10,000 megawatts(MW) of electricity from Nepal over the next decade.
Proposed Transmission Projects: The Cross-Border Transmission System Projects include:
The proposed Cross-Border Transmission System Projects includes,
- Inaruwa (Nepal)-New Purnea (India) 400 Kilovolt(kV) Double Circuit (Quad Moose) Transmission Link. This line will cover approximately 26 kilometres(km) in Nepal and 109 km in India,
- Lamki (Dodo Dhara) (Nepal)-Bareilly (India) 400 kV Double Circuit (Quad Moose) Cross-Border Transmission Systems. It will extend about 33 km in Nepal and 185 km in India.
Financing Structure: Both projects will follow a financing model comprising 80% debt and 20% equity.
Timeline: Both countries have agreed to complete the construction of the transmission lines by 2030.
Impact: Upon completion, the projects are expected to significantly enhance electricity trade between India and Nepal, strengthen grid resilience, and promote sustainable growth across the region.
About JV Framework:
JV Formation: The agreement enables the creation of two JV entities :one in India and one in Nepal, between NEA and POWERGRID to develop the high-capacity cross-border transmission lines.
Share Division: According to the agreement, the JV company to be established in India will construct the Indian sections of both transmission lines, with Power Grid holding 51% and NEA holding 49% of the shares.
- Similarly, the JV company to be established in Nepal will build the Nepali sections, with NEA holding 51% and Power Grid 49% ownership.
About Nepal:
Prime Minister (PM)– Sushila Karki
Capital-Kathmandu
Currency-Nepalese Rupee (NPR)
