India and Nepal Deepen Energy Ties with New Cross-Border Power Projects

TFP Bureau, New Delhi, October 29, 2025: In a significant step toward strengthening bilateral energy cooperation, India and Nepal have signed key agreements to enhance cross-border power connectivity and regional energy security. Nepal’s Minister for Energy, Water Resources and Irrigation, H.E. Kulman Ghising, met with India’s Union Minister for Power and Housing & Urban Affairs, Manohar Lal, in New Delhi today to review and expand ongoing collaboration in the power sector.

The two ministers held strategic discussions on advancing hydropower development in Nepal, expanding cross-border transmission networks, and promoting clean energy integration across South Asia. Both sides reaffirmed their commitment to a resilient and interconnected regional power grid to facilitate electricity trade and ensure long-term energy security.

In the presence of the two ministers, Joint Venture and Shareholders’ Agreements (JV&SHA) were signed between POWERGRID Corporation of India Limited—a Maharatna Central Public Sector Enterprise—and the Nepal Electricity Authority (NEA). The agreements pave the way for establishing two joint venture entities, one each in India and Nepal, to develop major high-voltage cross-border transmission links.

The new projects include the Inaruwa (Nepal)–New Purnea (India) 400 kV Double Circuit (Quad Moose) Transmission Line and the Lamki (Dododhara) (Nepal)–Bareilly (India) 400 kV Double Circuit (Quad Moose) Transmission Line. Once operational, these transmission corridors will significantly increase electricity exchange capacity between the two countries, improve grid stability, and create new opportunities for power trade and renewable energy integration.

Officials from both sides emphasized that the new power links will not only strengthen regional grid resilience but also foster economic growth through greater energy access and investment in clean infrastructure. The projects are expected to support India’s and Nepal’s shared goals of sustainable energy development and low-carbon growth.

Today’s meeting and the signing of the agreements mark a new phase in the India–Nepal energy partnership, building upon decades of friendship, mutual trust, and cooperation. Both governments reiterated their commitment to deepening energy collaboration under the vision of “Powering South Asia Together,” contributing to a stable and prosperous regional energy future.

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