Power Accord: Big step by India-Nepal in power sector, gets green signal for export of 1650 MW power.

India Nepal Power Accord: A historic agreement has been reached between India and Nepal regarding power. Nepal and India have agreed to increase energy trade through two new projects. This big decision was taken in the 13th JSC meeting held in Pokhara. This meeting at the Energy Secretary level will mark a new beginning for stronger energy relations between the two countries.

After this new agreement, Nepal will now sell a maximum of 1,650 MW electricity to India. Also, Nepal has got permission to import electricity up to 1,400 MW. This trade will take place through two new 400 KV cross-border transmission lines. With this important step the energy needs of both the neighboring countries will be easily met.

Importance of Dhalkebar and Sitamarhi line

Dhalkebar-Muzaffarpur 400 KV and Dhalkebar-Sitamarhi 400 KV lines will be used exclusively for electricity trade. The Dhalkebar-Muzaffarpur line is operational since 2016, while the work on the Sitamarhi line is about to be completed soon. Arun-Three Company of SJVN Limited of India is constructing the Dhalkebar-Sitamarhi line at a very fast pace.

Earlier, only 1,100 MW power export and 1,000 MW import permission was given to India from Nepal. This trade limit has been increased as the large capacity line of Dhalkebar-Sitamarhi is almost ready. This important meeting was co-chaired by Nepal’s Secretary Sarita Dawadi and India’s Power Secretary Pankaj Kumar.

Approval of new projects and DPR

Both countries have taken a strong decision to accelerate the construction of several new cross-border transmission projects. The detailed project report of Chamelia-Jauljibi 220 KV Double Circuit Transmission Line was also approved in the meeting. A clear target has been set to completely complete the construction of this important project by December 2028.

Nepal Electricity Authority and Power Grid Corporation will further accelerate the work of forming a joint venture company. The company will develop the Inruva-New Purnia and Dododhara-Bareilly 400 KV cross-border transmission lines in the future. The DPR of Motihari-Nijgarh 400 KV double circuit line has also been unanimously approved in this important meeting.

Important future energy plans

The Motihari-Nijgarh project will greatly help in exporting huge surplus power from Nepal to India by 2034-35. Apart from this, a proposal to increase the total power transmission capacity of Muzaffarpur-Dhalkebar transmission line has also been approved. The existing wires will be replaced with high temperature low sag conductors so that more electricity can be carried safely.

Additional and in-depth technical studies will take place before finalizing the proposed Lucknow-Kohalpur 400 KV Transmission Line project. The work on the Nepal portion of the New Butwal-Gorakhpur 400 KV line is expected to be completed by August 2026. New Butwal substation will be built by December 2027, till then this line will temporarily run at 220 KV capacity only.

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International cooperation and export

The Nepal portion of this project is being constructed with heavy funding from the Millennium Challenge Corporation of America. Under this new interim arrangement, it will be completely possible to import 130 MW power and export 200 MW power. All these sustained efforts will take the energy cooperation between India and Nepal to a new and very strong historical level.