Kathmandu: In a significant move to boost regional energy cooperation, Nepal and India on Tuesday signed a memorandum of understanding (MoU) for the development of cross-border transmission lines. The signing ceremony took place in Kathmandu in the presence of Nepal’s Minister for Energy, Water Resources and Irrigation, Deepak Khadka, and India’s Minister for Power, Housing and Urban Affairs, Manohar Lal Khattar.

Minister Khattar arrived in Nepal earlier in the day at the invitation of Minister Khadka. The agreement follows the consensus reached during the 12th Nepal-India Secretary-Level Joint Directive Committee meeting held in New Delhi two months ago. During the meeting, both sides had agreed to jointly construct two 400 KV cross-border transmission lines — the Inaruwa–New Purnia line and the Dodhara–Bareli line.

Director of the Nepal Electricity Authority (NEA) Kamal Acharya and Director of Power Grid Corporation of India Limited Dr. Yatindra Dwivedi signed the MoU on behalf of their respective organizations. As per the agreement, Nepal will hold a 51 percent share in the joint company that will develop the transmission line on the Nepali side, while India will hold 51 percent in the company responsible for construction on the Indian side. The remaining 49 percent shares will be owned by the other party in each respective company.

On the occasion, Minister Khadka stated that the agreement marks a milestone in energy cooperation between the two neighboring countries. He also thanked the Indian government for its continued support in Nepal’s energy sector development.

The agreement is expected to significantly enhance electricity trade between Nepal and India, improve power grid stability, and support Nepal’s goal of becoming a regional energy exporter, particularly during the monsoon season when the country experiences surplus hydropower generation.