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Power Grid Corporation & Nepal Electricity Authority Join Forces to Boost Cross-Border Power Connectivity

India and Nepal Join Forces to Boost Cross-Border Power Connectivity
Indian Masterminds Stories

In a major stride toward deepening regional energy cooperation, Power Grid Corporation of India Limited (POWERGRID) and the Nepal Electricity Authority (NEA) have signed a Memorandum of Understanding (MoU) to establish two joint venture companies – one in each country – for the development of high-capacity cross-border power transmission infrastructure.

The MoU was signed in the presence of Manohar Lal, Hon’ble Union Minister of Power and Housing & Urban Affairs, Government of India, and Dipak Khadka, Hon’ble Minister of Energy, Water Resources & Irrigation, Government of Nepal. The agreement outlines the construction of two major 400 kV double-circuit transmission lines:

  • Inaruwa (Nepal) – New Purnea (India)
  • Dododhara (Nepal) – Bareilly (India)

The signing ceremony was attended by Dr. Yatindra Dwivedi, Director (Personnel), POWERGRID, and Shri Kamal Acharya, Director, Grid Operation Department, NEA.

This strategic collaboration marks a significant milestone in bilateral energy trade and infrastructure integration, reinforcing long-term energy security, sustainability, and economic interdependence in the region.

Expanding Indian Hydropower Investments in Nepal
India has also been actively investing in Nepal’s hydropower sector, further strengthening energy cooperation. Key projects include:

  • West Seti and Seti River-6 (SR6): A combined capacity of 1,200 MW
  • Sapta Kosi High Dam Project: A proposed multipurpose dam on the Kosi River
  • Mahakali Treaty Projects: Including a proposed 6,480 MW development
  • Upper Karnali and Arun III: Each with 900 MW capacity
  • Phukot Karnali Hydroelectric Project: In collaboration with Nepal’s Vidyut Utpadan Company Ltd (VUCL)
  • Lower Arun Project: Led by India’s SJVN in partnership with Nepal’s Investment Board

POWERGRID: Leading India’s Energy Diplomacy
POWERGRID, a central public sector undertaking under India’s Ministry of Power, plays a critical role in bulk power transmission across the country and increasingly across borders. Headquartered in Gurugram, the company is at the forefront of India’s energy diplomacy, facilitating regional connectivity and sustainable development.


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