DiplomacyEconomic Diplomacy

India, Nepal strike deal to strengthen cross-border electricity transmission infrastructure to boost power trade

India and Nepal approve plans to enhance cross-border transmission infrastructure to boost electricity trade.

September 21, 2023 3:20 pm

Nepal's Prime Minister Pushpa Kamal Dahal (Left) and his Indian counterpart Narendra Modi have decided to step up cross-border power trade between the two countries
Nepal’s Prime Minister Pushpa Kamal Dahal (Left) and his Indian counterpart Narendra Modi have decided to step up cross-border power trade between the two countries

New Delhi, Kathmandu: India and Nepal approved plans to enhance their cross-border transmission infrastructure to boost electricity trade during 14th meeting of Joint Technical Team (JTT), reported India Narrative.

During the JTT meeting under Energy Secretary Level Joint Steering Committee (JSC) held in New Delhi on September 20, the two nations reached an understanding to expand capacity of the 400kV Dhalkebar-Muzaffarpur Cross Border Transmission Line and speed up the completion of smaller capacity cross-border power lines that are currently under construction.

Joint secretary at Ministry of Energy, Water Resources and Irrigation Sandeep Kumra Dev said, “The understanding will go into implementation, once the next JSC meeting endorses the understanding,” reported India Narrative.

The move is important for Nepal, as the country seeks to improve its transmission infrastructure to boost electricity exports to India and other neighbouring countries. PM Modi on June 1 said that India would buy 10,000MW of power from Nepal in the next 10 years when Nepali Prime Minister Puspa Kamal Dahal visited New Delhi.

Under the latest agreement, the Dhalkebar-Muzaffarpur transmission line will have the capacity to transmit up to 1,000MW of power, up from the previously agreed-upon 800MW. India so far permitted Nepal to export up to 562.6MW through this power line. Nepal exports rest from other cross border power lines.

SJVN Arun-3 Power Development Company was established by India’s state-owned SJVN Limited. It is constructing the cross-border power line to transmit its own power whose capacity is around 2,000MW. Nepal can use spare capacity of the 400kV Dhalkebar- Sitamarhi cross border transmission line which is being constructed by SJVN Arun-3 Power Development Company, as per the decisions made at the JTT meeting.

During the JTC meeting Nepali team leader, Dev said, “As Arun-3’s capacity is 900MW, there will be spare capacity in this transmission line until SJVN also develops 669MW Lower Arun and 490MW Arun-4 projects.”

Both countries also agreed to complete the 132 kV New Nautanwa-Mainaiya line by October this year and the 132 kV Kohalpur-Nanpara line by July next year, both of which can be used for power imports and exports. Moreover, both countries agreed to conduct a joint visit by their technical teams to assess the feasibility of building a 220kV cross-border transmission line from Nepal’s Mahendranagar to India’s Tanakpur, reported India Narrative.

Related Articles

Back to top button