India and Nepal officials sign deal on cross-border powerlines

Kathmandu: Two government-owned entities of Nepal and India on Wednesday signed a Joint Venture (JV) and Shareholders’ Agreement for the construction of two high-capacity cross-border transmission lines, marking another step forward in joint power infrastructure development.

The Nepal Electricity Authority (NEA) and the Power Grid Corporation of India Limited (PGCIL) signed the agreements in New Delhi to construct 400 kV cross-border transmission lines connecting Inaruwa (Nepal)–Purnia (India) and Lamki (Dododhara, Nepal)–Bareilly (India), Nepal’s Ministry of Energy, Water Resources and Irrigation said in a statement on Wednesday.

As both countries have been making efforts to strengthen energy cooperation in recent years, the lack of adequate high-capacity cross-border transmission infrastructure has remained a major bottleneck. To address this issue, Nepal and India have agreed to develop several new high-capacity transmission lines, and these two projects are part of that broader plan.

Subash Kumar Mishra, Deputy Executive Director of the NEA, and Sanjay Kumar Gupta, Chief Operating Officer (International Business) at PGCIL, signed the agreement.

“The signing of the joint investment agreement has paved the way for the establishment of joint venture companies to construct both transmission lines with the investment of NEA and PGCIL,” Nepal's ministry stated. According to the agreement, the joint venture company to be established in India will construct the Indian sections of both transmission lines, with Power Grid holding 51 per cent and NEA holding 49 per cent of the shares. Similarly, the joint venture company to be established in Nepal will build the Nepali sections, with NEA holding 51 per cent and Power Grid 49 per cent ownership.