The Union Minister for Power of India Manohar Lal wrapped up his two-day Nepal visit on Wednesday after meeting with Prime Minister KP Sharma Oli and Deputy Prime Minister and Minister for Urban Development Prakashman Singh.

During his stay in Kathmandu, Lal and his Nepali counterpart Dipak Khadka co-chaired a bilateral meeting focusing on India-Nepal power sector cooperation.

He highlighted the progress in joint power generation, cross-border transmission infrastructure, and bi-directional power trade, as outlined in the India-Nepal Joint Vision Statement, minister Khadka said.

Minister Lal also addressed challenges facing large-scale hydropower projects such as right-of-way issues for the Arun-III project’s transmission line. India’s Sutlej Jal Vidyut Nigam (SJVN) is developing the 900 megawatt project in eastern Nepal.

“He emphasised the keen interest of Indian companies in supporting Nepal’s solar power development and underscored the importance of advancing hydropower, strengthening grid interconnections, and exploring new collaborative opportunities,” a post on Lal’s official social media platform X stated.

On Tuesday, a memorandum of understanding (MoU) was signed between the Nepal Electricity Authority (NEA) and the Power Grid Corporation of India in the presence of Khadka and Lal to form two joint venture companies in India and Nepal to implement the high-capacity 400 kV double-circuit transmission links: Inaruwa (Nepal)-New Purnea (India) and Dodhara (Nepal)-Bareilly (India).

Kamal Acharya, director, Grid Operation Department, NEA, and Yatindra Dwivedi, director (personnel), Power Grid, India, signed the MoU in the presence of both ministers. Both ministers also visited the 900 MW Arun-3 Hydroelectric Project in Nepal’s Sankhuwasabha district on Tuesday, according to Minister Khadka. Developed by the SJVN, the project is a key initiative in strengthening India-Nepal energy cooperation, said Khadka. Lal reviewed the project's progress and inaugurated the electromechanical works at the powerhouse site.