India, Nepal sign pact for cross-border power infra

India and Nepal on Wednesday signed key agreements for the development of high-capacity cross-border power transmission infrastructure, marking a major step forward in regional energy cooperation.

Nepal’s Minister for Energy, Water Resources and Irrigation, Kulman Ghising, met Power and Housing and Urban Affairs Minister Manohar Lal Khattar in New Delhi, where the two sides reviewed ongoing collaboration in the power sector and discussed ways to strengthen hydropower development and electricity trade.

In the presence of both ministers, joint venture and shareholders’ agreements were signed between the POWERGRID, a Maharatna Central Public Sector Enterprise, and the Nepal Electricity Authority (NEA). The agreements provide for setting up two joint venture entities—one in each country—to develop high-capacity transmission corridors linking the Indian and Nepali grids.

The proposed projects include the Inaruwa (Nepal)-New Purnea (India) and Lamki (Dododhara) (Nepal)-Bareilly (India) 400 kV double-circuit transmission links. Once operational, these will significantly boost power exchange between the two nations, strengthen grid resilience and enhance regional energy security.

Officials said the initiative builds on the growing momentum in India–Nepal energy cooperation and reflects both nations’ shared commitment to sustainable development and economic growth.