NICCI welcomes expansion of Nepal-India cross-border electricity transmission
KATHMANDU: Nepal-India Chamber of Commerce and Industry (NICCI) on Thursday welcomed the outcomes of the 13th meeting of Nepal-India Joint Steering Committee (JSC) on Nepal-India cooperation in the power sector. The meeting, held on Wednesday in Pokhara, agreed to expand cross‑border electricity transmission between the two countries.
The committee decided to raise Nepal’s combined electricity export capacity to India from 1,100 MW to 1,650 MW, adding 550 MW of export potential. Import capacity will increase from 1,000 MW to 1,400 MW via the Dhalkebar-Muzaffarpur and Dhalkebar-Sitamarhi 400 kV corridors.
NICCI said progress on strategic transmission projects — including Inaruwa-Purnea, Dodhara-Bareilly, Motihari-Nijgadh, Chameliya-Jauljibi and New Butwal-Gorakhpur lines — will enable greater electricity trade and help build a stronger regional power market in South Asia. The chamber also welcomed ongoing cooperation between Nepal Electricity Authority (NEA) and the Power Grid Corporation of India (PGCIL) and the implementation of joint-venture transmission projects.
The business group has highlighted Nepal’s hydropower potential and India’s growing demand for clean energy, and has urged Nepal to make optimal use of rising electricity generation to support industrialisation and economic transformation. NICCI identified sectors that could benefit from more reliable and affordable power, including manufacturing, data centres, digital infrastructure, information technology services, electric mobility, including rail, and green hydrogen.
NICCI has encouraged Indian public and private enterprises, institutional investors and energy developers to expand investment in Nepal’s hydropower generation, transmission infrastructure and energy-intensive industries. The chamber said a stable, predictable and investment-friendly policy environment will be important to attract such participation.
The chamber expressed confidence that continued policy coordination and timely implementation of transmission projects will enable both countries to substantially increase Nepal’s electricity exports to India over the coming decade. NICCI has reiterated its readiness to support initiatives that deepen Nepal-India economic cooperation and help mobilise greater private sector involvement in the energy sector.
