India and Nepal have signed a Memorandum of Understanding (MoU) to develop cross-border power transmission infrastructure, which will facilitate the evacuation of power from Nepal and its supply to India.

The MoU was signed during the visit of the Union Minister of Power and Housing & Urban Affairs, Manohar Lal Khattar, to Nepal recently.

He also visited the Arun 3 hydropower project, which is financed by India, and inaugurated the commencement of electromechanical works at the project site.

Powergrid MoU with NEA

The Memorandum of Understanding (MoU) was signed between the Power Grid Corporation of India Limited (Power Grid) and the Nepal Electricity Authority (NEA).

Under the MoU, two joint venture companies will be established. One will be in Nepal and one in India.

Under the MoU, two transmission projects will be developed. These projects are :

400 kv transmission line connecting Inaruwa (Nepal) to New Purnea (India) and
400 kV double-circuit transmission system connecting Dododhara (Nepal) to Bareilly (India).

The Power Grid Corporation of India is a Maharatna central public sector enterprise (CPSE).

It was established in 1989 under the Company Act 1956.

It is under the Union Ministry of Power.

Manohar Lal Khattar's Visit to Arun 3 Hydel Project

Manohar Lal Khattar also visited the 900 MW Arun-3 Hydroelectric Project in Nepal’s Sankhuwasabha district, which is being developed with Indian assistance.

The Arun 3 Hydel power project is being built on the Arun River in Nepal’s Sankhuwasabha district.

It is being developed by Satluj Jal Vidyut Nigam Arun-III Power Development Company (SAPDC).

The SAPDC is a subsidiary company of Satluj Jal Vidyut Nigam Limited (SJVN).

The SJVN is a joint venture of the Government of India and the Government of Himachal Pradesh.

The Nepal government will receive 29% of the electricity free of cost, while the rest will be exported to India.

India-Nepal Power Agreement

In 2014, India and Nepal signed the India-Nepal Power Trade Agreement under which Nepal was to export its surplus hydropower to India.

Currently, India imports 941 MW of electricity from 28 hydropower projects in Nepal.

India has signed a long-term energy agreement with Nepal to import 10,000 MW of electricity over the next 10 years, commencing in 2024.

Currently, Electricity from Nepal is evacuated to india through two transmission lines;

400 kV Dhalkebar (Nepal)-Muzaffarpur (India) cross-border transmission line and
132 KV Mahendranagar (Nepal)-Tanakpur (Nepal) transmission line.

Also Read: Historic export of Nepalese electricity to Bangladesh through India