New Delhi: In a move to enhance regional electricity connectivity, POWERGRID and Nepal Electricity Authority (NEA) have signed a Memorandum of Understanding (MoU) to establish two joint venture companies for implementing high-capacity cross-border transmission lines between India and Nepal.
The agreement was signed in the presence of Union Minister of Power and Housing & Urban Affairs, Shri Manohar Lal, and Nepal’s Minister of Energy, Water Resources & Irrigation, Shri Dipak Khadka. The planned infrastructure aims to strengthen power exchange between the two countries and address growing electricity demands on both sides of the border.
Two Transmission Lines Planned Under JV Model
Under the MoU, POWERGRID and NEA will jointly develop two double-circuit 400 kV transmission systems:
Inaruwa (Nepal) – New Purnea (India)
Dododhara (Nepal) – Bareilly (India)
These projects will be developed through two separate joint venture entities, one incorporated in India and the other in Nepal. The infrastructure is expected to play a key role in improving bilateral electricity trade and facilitating renewable energy integration across borders.
A Step Toward Grid Interconnection and Energy Cooperation
While both countries have previously collaborated on hydropower and transmission-related initiatives, this marks a more structured attempt at institutionalising joint operations through dedicated corporate entities.
According to officials, the move aligns with ongoing efforts to create a regional electricity market in South Asia and reflects the increasing interdependence of national power systems in addressing energy security and decarbonisation goals.
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