India and Nepal have finalized a new agreement for five transmission lines, covering construction, upgrades, and investment modalities. The deal comes as 11,000 megawatts from various hydropower projects are in development. 

The agreement was reached during the 12th Joint Working Group on Power Sector Cooperation meeting in New Delhi, India, on 22 January 2025. According to Mr. Sandeep Dev, joint-secretary at Nepal's Ministry of Energy, Water Resources and Irrigation, the meeting finalized investment modalities for two 400Kv cross-border transmission lines and agreed to expedite three additional lines to enhance energy trade. 

Faster construction of these cross-border transmission lines will give Nepal access to broader markets, stimulating investment. The agreement builds on lessons from the previous 400Kv Butwal-Gorakhpur line joint venture project of the two countries. 

In addition to the 11,000 megawatts in development, a power purchase agreement for 20,000 megawatts is under consideration. 

For more details on the projects, read more.  

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Nepal, India agree to build two power lines, upgrade three