Nepal and India have agreed to increase the volume of electricity export and import through the 400kV Dhalkebar–Muzaffarpur and Dhalkebar–Sitamarhi transmission lines.

The decision came during the 13th meeting of the Nepal–India Joint Steering Committee (JSC) at the Energy Secretary level held in Pokhara on Wednesday.

Following a review of the current 1,000 MW electricity import-export capacity through the Dhalkebar–Muzaffarpur 400 kV cross-border transmission line, and based on a study conducted by the Joint Technical Team (JTT), both sides agreed to increase the combined power transfer capacity through the Dhalkebar–Muzaffarpur and Dhalkebar–Sitamarhi 400 kV transmission lines from 1,000 MW to 1,400 MW for imports, and from 1,100 MW to 1,650 MW for exports, said the decision. The meeting of the joint technical team (JTT) had recommended the secretary level committee for further negotiations and decisions.

The Joint Technical Team (JTT) between Nepal and India is a bilateral mechanism established in 2014 to prepare a long-term, integrated power transmission plan covering projects up to 2035.

The secretary level meeting was co–chaired by Sarita Dawadi, secretary at the Nepal Ministry of Energy, Water Resources and Irrigation, and Pankaj Agarwal, secretary at the India Ministry of Power.

The meeting discussed the recommendations made by the Joint Working Group (JWG) at the joint secretary level, which was held at the same venue on Tuesday under the co-chairmanship of Sandip Kumar Dev, joint secretary of the Nepal Ministry of Energy, Water Resources and Irrigation, and Pankaj Kumar, joint secretary (transmission) at the India Ministry of Power.

“The meeting reviewed issues relating to existing cross-border transmission lines between Nepal and India, under-construction and proposed cross-border transmission projects, Indian-invested hydropower projects and their associated transmission lines, and cross-border electricity import and export,” reads the statement issued by the Ministry of Energy and Water Resources.

The Detailed Project Report (DPR) for the Chameliya (Nepal)–Jauljibi (India) 220 kV double-circuit transmission line was approved, with the Joint Technical Team tasked with correcting minor errors identified in the report. The project is targeted for completion by December 2028, said the ministry.

There was also an agreement to move forward with the construction of the 400 kV Inaruwa–Purnea and Dododhara–Bareilly cross-border transmission lines, which are to be developed under a joint investment framework through the establishment of Special Purpose Vehicles (SPVs) in both countries. In line with the agreement reached at the previous meeting, the companies required to implement these projects have already been established in both Nepal and India.

Noting that the Shareholders’ Agreement (SHA) and the Joint Venture (JV) Agreement have already been signed between the Nepal Electricity Authority (NEA) and the Power Grid Corporation of India Ltd (PGCIL) for the construction of the Inaruwa–New Purnea and Dododhara (New Lamki)–Bareilly 400 kV cross-border transmission lines, both sides agreed to expedite the process of establishing the joint venture company to move the projects forward.

Regarding the cross-border transmission infrastructure required to facilitate additional electricity exports from Nepal to India by 2034–35, the Detailed Project Report (DPR) for the Motihari (India)–Nijgadh (Nepal) 400 kV double-circuit transmission line was approved.

Nepal and India on January 4, 2024 inked an agreement setting the target of up to 10,000 megawatts of electricity export to India in the next decade and agreed to build multiple cross-border transmission lines to transmit the power to India.

In order to develop hydropower projects, India’s Satluj Jal Vidyut Nigam (SJVN) is developing the 900 MW Arun-3 Hydropower Project. It has also been granted licence to develop the 679 MW Lower Arun Hydropower Project and the 490 MW Arun-4.

Arun-4 will be developed as a joint venture by the NEA and SJVN, which will have a majority stake.

India’s NHPC Limited is also set to develop the 750 MW West Seti and the 450 MW Seti River-6 project. The NHPC Limited and Vidyut Utpadan Company Limited earlier signed a memorandum of understanding to jointly develop the 480 MW Phukot Karnali Project.

But the NHPC has expressed concern over the Nepal Supreme Court’s ruling to increase the proportion of free electricity Nepal would receive from the 480 MW Phukot Karnali Hydropower Project in Kalikot, a district in Karnali Province.

The government should renegotiate the agreement under which Nepal is entitled to receive only 21.9 percent free electricity from a high-return project for which Nepal had already completed preparations for construction, said the court in its ruling in the second week of May.

The NHPC stated either the government of Nepal should go for review against the court’s ruling or should provide over Rs50 billion as viable gap funding. The NHPC has warned that it will withdraw from both projects in Nepal if the government does not reconsider its request, said the Nepali officials.

In the Wednesday meeting, the DPR for the reconductoring of the Muzaffarpur (India)–Dhalkebar (Nepal) 400 kV transmission line using High Temperature Low Sag (HTLS) conductors to increase its transmission capacity was approved.

Both sides also agreed to undertake further technical studies before finalising the proposed Lucknow (India)–Kohalpur/Lamahi (Nepal) 400 kV transmission line, said the statement.

“As the Nepal section of the New Butwal–Gorakhpur 400 kV cross-border transmission line is expected to be completed by August 2026, while the 400 kV New Butwal substation is expected to be completed by December 2027, both sides reached a technical agreement to operate the transmission line at 220 kV until then. They also agreed to proceed with arrangements to import up to 130 MW of electricity from December 2026 to March 2027, and export up to 200 MW from April 2027 to November 2027 through the line,” reads the decision taken on Wednesday.

In accordance with Article 5 of the Nepal–India Power Trade Agreement signed in 2014, the Joint Steering Committee (JSC) at the secretary level and the Joint Working Group (JWG) at the joint secretary level were established to facilitate implementation of the agreement, provide guidance, and monitor progress.

According to the Indian Embassy in Kathmandu, these meetings comprehensively reviewed the bilateral power sector cooperation between India and Nepal, including the development of hydropower projects, power trade and transmission infrastructure.

“Both sides appreciated progress on the development of new transmission lines including the 400 kV Gorakhpur-New Butwal line. Both sides discussed ways to expedite and facilitate the implementation of ongoing and envisaged power generation and transmission projects,” the Indian Embassy said in a statement.

Coordinated operation of Indian and Nepali grids, development of solar projects, cooperation in green hydrogen and capacity building of Nepali experts were discussed, the embassy stated.