Kathmandu: Nepal and India have reached an agreement on the modality for constructing cross-border transmission lines, a crucial step toward enhancing electricity trade between the two nations.

The agreement was finalized during a secretarial-level meeting between the relevant ministries of both countries, held in New Delhi on February 11. This transmission line will play a vital role in facilitating the export of 15,000 megawatts of electricity from Nepal to India and Bangladesh by 2035.

The Memorandum of Understanding (MoU) was signed by Nepal’s Energy Secretary, Suresh Acharya, and India’s Electricity Secretary, Pankaj Agarwal. With this agreement in place, the construction of the cross-border transmission line will now move forward.

Earlier, in November 2024, Nepal’s Minister for Energy, Water Resources, and Irrigation, Deepak Khadka, had engaged in discussions with Indian ministries regarding the Nepal-India Power Trade Agreement. The agreement aims to export 10,000 megawatts of electricity from Nepal to India within the next 10 years.

Following these discussions, the 12th meeting of the Joint Steering Committee was held on January 22, 2024, to advance the construction process. During this meeting, both countries reaffirmed their commitment to facilitating power trade and expediting the development of cross-country transmission lines.