Nepal and India Expand Cross-Border Electricity Trade Capacity

The Government of Nepal and the Government of India agreed to expand cross-border electricity trade during the 13th meeting of the Nepal–India Energy Secretary-Level Joint Steering Committee in Pokhara on July 15, 2026. The agreement increases Nepal's electricity export capacity to 1,650 MW and import capacity to 1,400 MW by integrating the Dhalkebar–Sitamarhi 400 kV line with the existing Dhalkebar–Muzaffarpur line. This allows Nepal to export an additional 550 MW to reduce power waste during the monsoon, while India will provide 400 MW more during the dry season.

Both nations approved Detailed Project Reports for the Chameliya–Jauljibi 220 kV and Motihari–Nijgadh 400 kV lines. Additionally, the Nepal Electricity Authority and the Power Grid Corporation of India agreed to expedite joint ventures for the Inaruwa–Purnia and Dododhara–Bareilly 400 kV lines. Other discussions focused on the 400 kV Gorakhpur-New Butwal line, solar projects, and green hydrogen.

Parallel to the energy talks, diplomatic meetings took place in Kathmandu on July 16, 2026, where foreign officials discussed deepening institutional collaboration and priority sector development. On July 15, officials also laid the foundation stone for an Indian-assisted monastery in the Solukhumbu District.