Strengthening Cross-Border Power Ties
India and Nepal Strengthen Energy Partnership: India and Nepal have taken a landmark step in energy collaboration by signing two crucial power agreements. The accords were inked between India’s POWERGRID Corporation and the Nepal Electricity Authority (NEA) in New Delhi, in the presence of India’s Power Minister Manohar Lal and Nepal’s Energy Minister Kulman Ghising. These deals aim to construct two 400 kV cross-border transmission lines and establish joint ventures in both countries to execute the projects.
Static GK fact: POWERGRID is India’s central transmission utility under the Ministry of Power, managing over 85% of the country’s interstate and interregional electricity transmission network.
New Transmission Lines
The two planned transmission corridors are:
- Inaruwa (Nepal) – New Purnea (India)
- Lamki/Dododhara (Nepal) – Bareilly (India)
Each project will be executed through separate joint venture (JV) companies set up in both countries. The ownership structure will ensure balanced bilateral participation, promoting transparency and shared responsibility.
These lines will boost grid stability, enable seasonal power exchange, and support Nepal’s hydropower exports to India — a step toward greater regional energy integration.
Objectives and Benefits
The agreements aim to:
- Increase electricity trade between India and Nepal.
- Improve grid resilience and power reliability.
- Support clean energy transition through hydropower-based trade.
- Lay the foundation for a South Asian energy market.
Static GK Tip: Nepal’s estimated hydropower potential is around 83,000 MW, of which nearly 43,000 MW is technically feasible — a key advantage for clean energy exports.
Strategic and Economic Significance
The enhanced interconnection capacity will allow regional load sharing and greater energy security. For India, the cooperation aligns with its Neighborhood First Policy, positioning it as a development partner in South Asia. For Nepal, the move will boost foreign exchange earnings through hydropower exports and attract cross-border investments in energy infrastructure.
Static GK fact: India already imports over 450 MW of power from Nepal through existing cross-border lines such as the Dhalkebar–Muzaffarpur link.
Regional Integration through Energy
This initiative is a model of clean energy diplomacy in South Asia. By connecting grids, India and Nepal are setting the stage for broader cooperation with Bhutan and Bangladesh, potentially paving the way for a regional power pool. Such connectivity fosters economic stability, climate-friendly energy exchange, and political trust among neighbouring countries.
Static Usthadian Current Affairs Table
India and Nepal Strengthen Energy Partnership:
| Topic | Detail |
| Agreements signed between | POWERGRID (India) and Nepal Electricity Authority (NEA) |
| Signing location | New Delhi |
| Indian Minister present | Manohar Lal, Minister of Power |
| Nepalese Minister present | Kulman Ghising, Minister of Energy |
| Transmission line projects | Inaruwa–New Purnea and Lamki/Dododhara–Bareilly |
| Transmission capacity | 400 kV each |
| Type of arrangement | Separate Joint Ventures in both countries |
| Primary objectives | Electricity trade, grid stability, hydropower export |
| Policy alignment | India’s Neighborhood First and Clean Energy goals |
| Broader vision | South Asian regional energy market integration |
