Nepal and India have initiated the process of establishing a joint company to develop two 400 kV cross-border transmission lines: Inaruwa - New Purnia and Dodhara - Bareilly.
During the 12th Energy Secretary-level Joint Steering Committee (JSC) meeting held on January 25, officials of the two countries agreed to build five new cross-border transmission lines—four with a 400 kV capacity and one with a 220 kV capacity—through joint investment. The meeting also finalized the investment modality for these projects.
Following this decision, Nepal Electricity Authority (NEA) and India's Power Grid Corporation are setting up a joint company to implement the transmission projects, according to Dirghayu Kumar Shrestha, chief of NEA’s Transmission Directorate.
Shrestha stated that preparations are underway to establish the joint venture company, with the goal of bringing these transmission lines into operation by 2035, aligning with Nepal's energy development roadmap.
"Nepal has already drafted the joint venture and share ownership agreement and sent it to India. Once the Power Grid Corporation approves it, the draft will be submitted to Nepal's Council of Ministers for approval. After that, the company formation process will move forward," he explained.
The NEA will hold a 51% stake in the company responsible for constructing the transmission lines on the Nepal side, while the Power Grid Corporation will own 49%. On the Indian side, the company will be 51% owned by the Power Grid Corporation and 49% by NEA, as per the previous agreement.
The meeting also reviewed existing, under-construction, and proposed cross-border transmission lines, as well as Indian-invested hydropower projects and related transmission infrastructure. Discussions covered electricity trade between the two countries, including imports and exports.
An earlier agreement set a timeline to complete the transmission lines by fiscal year 2029/30.
Shrestha added that the JSC meeting also discussed signing an agreement for the Chameliya (Nepal) - Jauljivi (India) 220 kV double-circuit transmission line. The NEA will develop the Nepal section, while the Power Grid Corporation will handle the Indian section, targeting completion by 2027, with the Detailed Project Report (DPR) expected by March 2025.
Additionally, the JSC reached agreements on constructing the Nijgadh - Harnaiya, Kohalpur - Lucknow, and Dhalkebar - Muzaffarpur transmission lines. The DPRs for these projects will support the goal of exporting 10,000 MW of electricity to India over the next decade.
Currently, the 400 kV Dhalkebar - Muzaffarpur transmission line is the only high-capacity cross-border line in operation, transmitting 500 MW of electricity. Plans are underway to upgrade its capacity to 1,000 MW.
