India, Nepal agree on joint development of cross border transmission lines

Reaffirming that power sector cooperation is a strong pillar of the India-Nepal partnership, both the nations have agreed to pursue joint development of generation projects in Nepal, joint development of cross-border power transmission infrastructure among others.

India and Nepal held the 9th meeting of the Joint Working Group (JWG, Joint Secretary level) and the Joint Steering Committee (JSC, Secretary level) on bilateral power sector cooperation in Kathmandu on February 23 and 24, 2022, respectively.

During the JSC and JWG meetings, according to the Indian Embassy in Nepal, both the nations have “agreed to pursue joint development of generation projects in Nepal, joint development of cross-border power transmission infrastructure, power trade under respective domestic regulations and policy framework, and capacity building assistance.”

The two sides also agreed to constitute a Joint Hydro Development Committee (JHDC) to further explore the development of viable hydropower projects in Nepal with a particular focus on storage projects.

According to a press release issued by the Ministry of Energy, Water Resources and Irrigation, Nepal and India have agreed to form a joint technical team consisting of three members from each country to construct a large hydropower project.

The meeting discussed the existing transmission lines between the two countries, under construction and proposed interstate transmission lines, Arun III hydropower and transmission line, and interstate power trade.

The two sides have also agreed to increase the volume of electricity to be traded through the 400kV Dhalkebar-Muzaffarpur cross-border transmission line to 600MW from the current 350MW.

During the meeting, there was an agreement to increase the volume of power to be traded through this transmission line once the 400kV Hetauda-Dhalkebar-Inaruwa transmission line is completed, possibly by December 2023.

In addition to this, the Nepal Electricity Authority (NEA) and the Power Grid Corporation of India would set up a joint company by April 2022 for the construction of the cross-border New Butwal Gorakhpur transmission line.

The 400 KV transmission line will span 140 kilometres (20 km in Nepali territory and the remaining 120 km in Indian territory).

The government of Nepal has to manage the budget to construct the project on its side.

Exporting more power to India before the onset of monsoon has been one of the major agendas of the meetings.

This comes at a time when Nepal is caught in a dilemma over whether to ratify the Millennium Challenge Corporation-Nepal Compact, a $500 million US grant to Nepal to be used in the construction of electricity transmission lines and road maintenance.

Major political parties, including those in the ruling coalition, are divided over whether to accept the US grant, which is yet to be ratified by parliament.

Hundreds of anti-MCC protesters broke through barricades and clashed with police. Police have used teargas, water cannon, and batons to stop the protesters.