India and Nepal announced an agreement to upgrade cross-border electricity transmission facilities to increase power trading

According to India Narrative, during the 14th Joint Technical Team (JTT) conference, India and Nepal approved measures to improve their cross-border transmission infrastructure to increase power trading.

The two countries agreed to increase the capacity of the 400 kilovolts (kV) Dhalkebar-Muzaffarpur Cross-Border Transmission Line and expedite the completion of smaller capacity cross-border power lines that are currently under construction during the JTT meeting under the Energy Secretary Level Joint Steering Committee (JSC) held in New Delhi.

According to the Joint Secretary at the Ministry of Energy, Water Resources, and Irrigation, Mr. Sandeep Kumra Dev, the understanding will go into implementation once the next JSC meeting endorses it.

The move is important for Nepal, as the country seeks to improve its transmission infrastructure to boost electricity exports to India and other neighbouring countries. According to Prime Minister Mr. Narendra Modi, India would buy 10,000 megawatts (MW) of power from Nepal in the next 10 years when Nepali Prime Minister Mr. Puspa Kamal Dahal visited New Delhi.

The Dhalkebar-Muzaffarpur transmission line will be able to transmit up to 1,000 MW of power under the most recent agreement, up from the previously agreed-upon 800 MW. Up till this point, India has allowed Nepal to export up to 562.6 MW via this electricity connection. Rest from other cross-border power cables is exported by Nepal.

Satluj Jal Vidyut Nigam (SJVN) Limited, a state-owned company in India, founded SJVN Arun-3 Power Development Company. It is building a 2,000 MW cross-border power line to transmit its own power. According to the decisions made at the JTT meeting, Nepal may use the extra capacity of the 400 kV Dhalkebar-Sitamarhi cross-border transmission line that is being built by SJVN Arun-3 Power Development Company.

Both nations also agreed to construct the 132 kV Kohalpur-Nanpara line by July of next year and the 132 kV New Nautanwa-Mainaiya line, both of which can be utilised for power imports and exports, by October of this year. Additionally, both nations agreed to send a joint technical team to evaluate if a 220 kV cross-border transmission line between Nepal's Mahendranagar and India's Tanakpur is feasible.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.