KATHMANDU: The government has clarified that the Nepal Electricity Authority (NEA) will receive an equal share of benefits from the upcoming cross-border transmission lines being built between Nepal and India.

A new agreement has been signed to construct two additional 400-kilovolt cross-border transmission lines-the Inaruwa–Purnia and Dododhara–Bareilly lines- under joint investment.

According to the Ministry of Energy, Water Resources and Irrigation, this agreement follows the decision made during the 12th meeting of the Joint Steering Committee (JSC).

To implement that decision, the NEA and India’s Power Grid Corporation Limited recently signed a Joint Venture (JV) and Shareholders’ Agreement to establish joint companies in both countries.

As per the agreement, NEA will hold 51 percent shares in the joint company established in Nepal and 49 percent shares in the joint company set up in India. The NEA has also secured capacity booking in these transmission lines.

So far, NEA has signed power purchase agreements (PPA) for projects totaling 11,433 megawatts (MW), while grid connection agreements have been completed for an additional 5,230 MW out of 12,646 MW of total applications received for power trade.

The Ministry stated that constructing cross-border transmission lines has been prioritized to ensure market access for electricity generated by ongoing and upcoming hydropower projects in Nepal.

Currently, Nepal and India are connected through a 400 kV Dhalkebar–Muzaffarpur transmission line, while another 400 kV New Butwal–Gorakhpur line is under construction and expected to be completed by 2026.

For the Dhalkebar–Muzaffarpur line, separate joint venture companies have already been established in both Nepal and India.

The NEA holds a 50 percent share in the joint company operating on the Nepal side.