India, Nepal Advance Energy Ties with Arun-3 & New Grid MoU

23 Apr 2025 CW Team

Union Minister Shri Manohar Lal's visit to Nepal has ushered in a new phase of India-Nepal energy cooperation, with key milestones achieved in hydropower and cross-border transmission infrastructure.

During his visit to the 900 MW Arun-3 Hydroelectric Project in Nepal’s Sankhuwasabha district, developed by India’s SJVN Ltd, Shri Manohar Lal inaugurated the commencement of electromechanical works at the powerhouse site—an essential step toward the project’s timely completion. The Arun-3 project is a flagship symbol of the growing partnership between the two nations in the renewable energy sector.

In Kathmandu, Shri Manohar Lal, along with Nepal’s Energy Minister Shri Dipak Khadka, witnessed the signing of a landmark Memorandum of Understanding (MoU) between India’s POWERGRID and the Nepal Electricity Authority (NEA). The MoU lays the foundation for two joint venture companies—one in each country—that will construct vital high-capacity transmission corridors.

Key Transmission Projects Under the MoU:

400 kV Inaruwa (Nepal)–New Purnea (India)

400 kV Dododhara (Nepal)–Bareilly (India)

These double-circuit transmission systems will greatly enhance electricity trade between India and Nepal, strengthening regional energy security, improving grid reliability, and supporting economic integration.

The MoU was signed by Dr. Yatindra Dwivedi, Director (Personnel), POWERGRID, and Shri Kamal Acharya, Director, Grid Operation Department, NEA—signifying a shared commitment to sustainable and mutually beneficial energy collaboration.

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