India, Nepal Seal JV Deals To Build Cross-Border Power Corridors

27 Nov 2025 CW Team

Power Grid Corporation of India and the Nepal Electricity Authority have finalised a series of joint venture agreements to build and operate cross-border transmission links aimed at strengthening electricity trade between the two countries. The move marks a major step towards establishing dedicated high-voltage corridors that can reliably handle rising demand and seasonal fluctuations on both sides of the border.

Under the agreements, the two organisations will set up joint venture companies to plan, construct and maintain key transmission projects. These lines will support the long-term power-trade framework endorsed by both governments, including the export of surplus hydropower from Nepal to India during the monsoon and imports from India during the dry winter months. The cooperation dovetails with the plan to scale bilateral electricity trade to ten gigawatts within the next decade.

The joint ventures will also oversee development of new substations, system-strengthening measures and grid-integration assets to enhance the stability of cross-border power flows. The agreements follow India’s recent approval of higher import volumes of clean energy from Nepal and expanded transmission permissions across multiple existing corridors.

Both sides have stressed that dependable transmission connectivity is essential for unlocking Nepal’s hydropower potential and supporting India’s clean-energy transition. The JV structure enables Power Grid to provide technical expertise and project-execution capacity, while the Nepal Electricity Authority contributes local knowledge and site access.

With the agreements now formalised, work is set to accelerate on priority corridors identified during recent bilateral discussions aimed at deepening regional energy cooperation.

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