Kathmandu: Nepal and India have signed agreements to jointly develop two 400 kV cross-border transmission line projects aimed at strengthening electricity connectivity and power trade between the two countries.
The Joint Venture and Shareholders’ Agreements (JV&SHA) for the Inaruwa–New Purnea and Lamki Dododhara, Bareilly transmission lines were signed in New Delhi on Wednesday in the presence of Nepal’s Energy Minister Kulman Ghising and India’s Power Minister Manohar Lal.
Under the agreements, joint venture companies will be established in both countries — with Nepal Electricity Authority (NEA) and Power Grid Corporation of India Limited (POWERGRID) holding 51 and 49 percent stakes alternately in each country. The projects will be financed with 80 percent debt and 20 percent equity.
According to a joint technical study, the Inaruwa–New Purnea line will cover 135 kilometers and cost around Rs 2.65 billion in Nepal and INR 4.13 billion in India, while the Lamki Dododhara–Bareilly line will span 218 kilometers, costing Rs 2.57 billion and INR 6.14 billion respectively. Both projects are expected to be completed by 2030.
Energy Minister Ghising said the new transmission corridors will help Nepal export surplus hydropower more efficiently, while India’s Power Minister Lal said the projects would enhance regional energy security and support economic growth.
The new transmission lines will complement existing and ongoing projects such as the Dhalkebar–Muzaffarpur and Butwal–Gorakhpur lines, further expanding Nepal–India electricity cooperation.