India and Nepal Forge Landmark Partnership to Build 400 kV Transmission Corridors, Powering a New Era of Regional Energy Cooperation – EQ
In Short : India and Nepal have signed landmark agreements to build two 400 kV cross-border transmission lines — Inaruwa–New Purnea and Lamki/Dodhara–Bareilly — through joint ventures between POWERGRID and Nepal Electricity Authority. The projects aim to boost regional energy trade, enhance grid reliability, and promote clean power exchange, strengthening bilateral cooperation in sustainable energy development.
In Detail : India and Nepal have taken a major step forward in strengthening their energy cooperation with the signing of new agreements to develop two high-capacity cross-border transmission lines. The projects aim to significantly boost power exchange between the two nations, paving the way for greater regional energy integration and stability in South Asia.
The two planned transmission corridors — the 400 kV Inaruwa–New Purnea line and the 400 kV Lamki/Dodhara–Bareilly line — will be jointly developed through newly formed ventures in both countries. These lines will enhance the flow of electricity across borders, ensuring efficient utilization of renewable energy resources and supporting grid balancing operations.
India’s POWERGRID Corporation and Nepal Electricity Authority (NEA) formalized the shareholder agreements, marking a milestone in the countries’ long-standing power partnership. Both sides will hold stakes in the joint ventures, sharing responsibility for the design, financing, construction, and management of the new infrastructure projects.
Once operational, these transmission links will facilitate large-scale export of surplus hydropower from Nepal to India while allowing India to provide technical and operational support. This arrangement strengthens mutual energy security and contributes to a more resilient and interconnected regional electricity network.
The agreements were signed in the presence of senior officials and energy ministers from both countries, underscoring the political and economic importance of this initiative. It reflects the deepening cooperation between New Delhi and Kathmandu in energy diplomacy, which has become a cornerstone of their bilateral relations.
By connecting the grids of India and Nepal more effectively, the projects are expected to promote renewable energy generation, reduce transmission bottlenecks, and create new opportunities for power trading in South Asia. Both nations are also exploring similar projects with Bangladesh and Bhutan under a wider regional framework.
These cross-border power links will also help integrate green energy sources, particularly hydropower and solar, into the regional grid system. This step aligns with India’s broader goal of achieving 500 GW of renewable capacity by 2030 while supporting Nepal’s ambition to become a net exporter of clean electricity.
Experts believe the projects will encourage private sector participation and attract foreign investment in the energy sector. The development of robust infrastructure and policy alignment between the two countries will further stimulate regional cooperation and help meet the growing energy demand sustainably.
Ultimately, the India–Nepal transmission agreements symbolize a shared vision for a greener and more interconnected South Asia. By enhancing power trade, fostering energy independence, and prioritizing renewable integration, both nations are setting a model for cross-border collaboration in achieving sustainable growth and regional prosperity.
