India, Nepal Sign Pact to Develop Cross-Border Power Lines

India, Nepal Sign Pact to Develop Cross-Border Power Lines

India Manufacturing Review Team
Thursday, 30 October 2025
  • India and Nepal to build two 400 KV cross-border transmission lines
  • Projects to be executed through India-Nepal joint ventures
  • Aimed at enhancing power trade and regional grid stability

India and Nepal have recently enhanced their enduring energy partnership by signing significant agreements to construct new cross-border power transmission lines, which will improve electricity trade and support a stable regional grid.

Both the nations have strengthened their energy cooperation through a new power transmission pact, enhancing India Nepal relations by promoting cross-border electricity trade and advancing joint hydropower projects under the India Nepal power agreement.

Nepal’s Minister for Energy, Water Resources and Irrigation, Kulman Ghising, visited India’s Minister for Power, Manohar Lal, in New Delhi to assess the status of current hydropower projects and to discuss corrective measures to its grid connection for the purposes of cleaner and reliable energy trading.

The newly proposed transmission line projects include the construction of two significant 400 Krore double circuit (quad moose) transmission lines, known as the Inaruwa (Nepal)–New Purnea (India) and Lamki(Dododhara) (Nepal)–Bareilly (India) transmission lines.

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These lines will be developed by India’s POWERGRID Corporation working with the Nepal Electricity Authority under agreements between POWERGRID Corporation and the NEA.

The ceremony for the signing was attended by both ministers, thus indicating the increasing collaboration of the two countries in the area of renewable energy infrastructure.

According to the plan, two joint venture firms—one in India and the other in Nepal—will be set up to manage the designing, constructing, and running of these corridors with large capacity for electricity transmission.

After the completion of the projects, it is anticipated that the electricity trade between the two countries will be India and Nepal, thus already making the geographical area more attractive electrically.

 This partnership has marked another step forward in the two countries’ mutual dedication to the eco-friendly environment and the transition to clean energy in the region of South Asia.

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