Government Approves Rs 3 Billion Equity Investment for Cross-Border Power Lines with India

The government has approved an investment of Rs 3 billion in equity capital for the construction of two major cross-border transmission lines with India.

Thursday’s Cabinet meeting decided to invest Rs 1 billion in the Inaruwa–New Purnia 400 kV transmission line and Rs 2 billion in the Dodhara–Bareilly 400 kV transmission line, according to Sandeep Kumar Dev, Joint Secretary at the Ministry of Energy, Water Resources and Irrigation.

Government Spokesperson and Minister for Communication and Information Technology Jagadish Kharel said that the Cabinet has approved the plan to establish two joint venture companies — one in Nepal and another in India — with joint investment from the Nepal Electricity Authority (NEA) and Power Grid Corporation of India Limited (PGCIL).

“As per the decision, NEA will invest Rs 1 billion in equity capital for the Inaruwa–New Purnia project and Rs 2 billion for the Dodhara–Bareilly project,” Minister Kharel said while announcing the Cabinet decisions.

Earlier, the 12th meeting of the Nepal–India Joint Steering Committee at the secretary level held in January had agreed to construct the two transmission lines under a joint venture model. As per the agreement, NEA will hold a 51 percent share and PGCIL 49 percent in the Nepal-based company, with the same investment ratio to be applied on the Indian side. Both sides had also agreed to initiate the establishment of the joint venture companies within a month.

Nepal and India signed a memorandum of understanding on April 22 for the construction of the 400 kV Dodhara (Lamki)–Bareilly and Inaruwa–New Purnia transmission lines. The MoU was signed in Kathmandu in the presence of then Minister for Energy, Water Resources and Irrigation of Nepal Deepak Khadka and India’s Minister for Power, Housing and Urban Affairs Manohar Lal Khattar. NEA Director Kamal Acharya and PGCIL Director Yatindra Dwivedi signed the document on behalf of their respective institutions.

The government has unveiled the Energy Development Roadmap 2024, targeting the generation of 28,500 megawatts of electricity by 2035, of which 15,000 megawatts will be exported. The roadmap identifies inadequate cross-border transmission infrastructure as a key bottleneck to power trade. Officials believe that the construction of these large-capacity cross-border transmission lines will significantly enhance electricity trade between Nepal and India.