Nepal and India agree to build new projects in the energy sector

At the Nepal-India Energy Joint Meeting, Nepal and India have reached an agreementto build new projects by injecting joint investment in the hydropower sector.

As per the agreement, a joint technical team will be formed to carry out the study as per the proposal made by India.The two countries agreed to build more transmission lines, complete the transmission lines that are under construction and proposed new cross-country transmission lines, completion of Arun 3 hydropower project and energy export and import. Both the countries agreed to carry out a study of the possibility of constructing a cross-country power transmission line between Nepal and West Bengal (India) by a joint technical team. The countries alsodecided to start using the Dhalkebar-Muzaffarpur 400 kV transmission line to import and export up to 600 MW of electricity.The two sides also agreed to increase the volume of power to be traded through this transmission line once the 400kV Hetauda-Dhalkebar-Inaruwa transmission line is completed (possibly by December 2023). Further, it has been agreed that a new company will be constituted by April 2022 to build the second cross-country Butwal-Gorakhpur 400 kV transmission line.