India and Nepal Sign Historic Power Grid Deal to Boost Cross-Border Electricity Trade
POWERGRID and Nepal Electricity Authority (NEA) sign Joint Venture agreements to develop two 400 kV links: Inaruwa-New Purnea and Lamki-Bareilly, enhancing energy security.
New Delhi, October 29, 2025
India and Nepal have taken a monumental step in their bilateral energy partnership, with the signing of agreements to develop two new high-capacity 400 kV cross-border power transmission links. The landmark agreements were signed today in New Delhi following a high-level meeting between India's Union Minister of Power and Housing & Urban Affairs, Shri Manohar Lal, and Nepal's Minister for Energy, Water Resources and Irrigation, His Excellency Kulman Ghising.
The core of the initiative involves the formal execution of Joint Venture and Shareholders' Agreements (JV&SHA) between India's Maharatna Central Public Sector Enterprise, POWERGRID, and the Nepal Electricity Authority (NEA). These agreements will establish two dedicated joint venture entities-one in India and one in Nepal-specifically tasked with developing and implementing the crucial infrastructure.
The two vital transmission projects approved are:
Inaruwa (Nepal) - New Purnea (India) 400 kV Double Circuit (Quad Moose) Transmission Link.
Lamki (Dododhara) (Nepal) - Bareilly (India) 400 kV Double Circuit (Quad Moose) Transmission Link.
Strengthening Regional Grid Connectivity
During their strategic discussions, Minister Shri Manohar Lal and Minister H.E. Kulman Ghising reviewed the ongoing power sector cooperation, including the progress of hydropower projects in Nepal. A significant focus was placed on initiatives to enhance regional grid connectivity to facilitate a smoother and more robust cross-border electricity trade.
These new 400 kV transmission corridors are designed to substantially enhance the volume of electricity exchange between the two nations. Once completed, the projects will play a critical role in strengthening regional energy security, improving grid resilience, and ultimately supporting sustained economic growth across both countries through greater integration of clean energy resources.
Today's development underscores the accelerating momentum in the India-Nepal energy partnership, reinforcing decades of diplomatic ties and a shared vision for sustainable power development.
