India and Nepal have entered into a memorandum of understanding for development of cross-border power transmission links.
On April 22, 2025, an MoU was signed between Power Grid Corporation of India Ltd (PGCIL) and Nepal Electricity Authority (NEA), paving the way for incorporation of two joint ventures companies.
These two JV companies – one each in India and Nepal – will implement high-capacity transmission links connecting the two nations. The proposed lines include:
These critical transmission links will significantly boost power exchange capabilities between the two countries, fostering energy security, grid stability, and economic growth across the region, a government release said.
The MoU was signed by Dr. Yatindra Dwivedi, Director (Personnel), PGCIL, and Kamal Acharya, Director, Grid Operation Department, NEA.
This MoU was signed during the visit of Union power minister Manohar Lal to Nepal. During his visit, the minister reviewed the progress on the 900 MW Arun-3 Hydroelectric Project in Nepal’s Sankhuwasabha district. This landmark project being developed by SJVN Ltd, a Central PSU under the power ministry.
The Arun-3 project stands as a symbol of robust India-Nepal partnership in the hydropower sector. On this occasion, the minister inaugurated the commencement of electromechanical works at the powerhouse site, a critical milestone towards the project’s timely completion, the release added.
Featured photograph sourced from sarkaritel.com