The governments of India and Nepal held the eighth meeting of the Joint Steering Committee (JSC) on Cooperation in the Power sector on 10 December 2020 virtually. The JSC is the highest bilateral mechanism for enhancing and coordinating various government-to-government-led initiatives in the power sector. The news release highlighted that the meeting generated positive and wide-ranging discussions. These are expected to further boost the expansion of power sector cooperation between India and Nepal.

Outcomes of the meeting included:

• Review of progress made on bilateral processes and initiatives in the power sector;
• Discussion of the development of rules and guidelines for cross-border trade of electricity;
• Development of energy banking mechanism;
• Development of cross-border high voltage transmission lines; and
• Review of progress in the 900MW Arun-III Hydro Electric Project in Nepal and agreement to further facilitate its immediate implementation.

The news release also stated that India and Nepal have made significant progress in their power sector coordination in the last five years. Achievements by both governments include completion of the 400 kilovolts transmission line at Muzaffarpur-Dhalkebar, the first cross border transmission line in South Asia; agreement on the funding modality for the Gorakhpur-Butwal 400 kV line; and progress on the 900 MW Arun-III Hydro Electric Project.

Both sides reaffirmed their commitment to further strengthening the power sector cooperation between India and Nepal, including development of an integrated grid, building of more cross border transmission lines, and investment in Nepal’s hydro and solar power projects.

Related links:

Press Release by the Embassy of India in Kathmandu

India-Nepal virtual meet on power sector cooperation held

India-Nepal virtual meet on power sector held