Kathmandu, Oct 16 (NationPress) The government of Nepal has approved an equity investment totaling NPR 3 billion for the construction of two significant cross-border transmission lines with India, which will be collaboratively developed by state-owned enterprises from both nations.

This initiative represents progress in the establishment of the 400 kV Inaruwa–New Purnia and 400 kV Dododhara–Bareilly cross-border transmission lines, which are being prepared for construction by the Nepal Electricity Authority (NEA) and the Power Grid Corporation of India Limited (PGCIL).

The two organizations will form distinct joint venture companies in both Nepal and India, with shared investments to advance these projects.

With India agreeing to purchase 10,000 MW of electricity from Nepal over the next decade, enhancing cross-border transmission infrastructure is crucial to achieve this goal.

"The Cabinet meeting held on Thursday decided to approve a total equity investment of NPR 3 billion to develop the two cross-border transmission lines," stated Nepal's Minister for Communication and Information Technology, Jagadish Kharel, during a press briefing.

A senior official from Nepal's Ministry of Energy, Water Resources and Irrigation revealed that the Ministry had initially proposed an equity investment of NPR 1 billion for the joint venture company responsible for the Inaruwa–New Purnia line and NPR 2 billion for the company managing the Dododhara–Bareilly line.

At the 12th meeting of the Energy Secretary-level Joint Steering Committee held in January this year, it was agreed that the Nepali entity would possess a 51 percent stake in the Nepal-based joint venture, while the Indian entity would own the remaining 49 percent.

Conversely, the Indian entity will hold 51 percent in the Indian joint venture, with the Nepali entity retaining the rest.

The two nations also agreed to finalize the Inaruwa–New Purnia line by 2028–29 and the Dododhara–Bareilly line by 2029–30.

Approximately 25 km of the Inaruwa–New Purnia line will be constructed in Nepal, while about 100 km will be situated in India.

Similarly, around 35 km of the Dododhara–Bareilly line will be built in Nepal and roughly 150 km in India.

Currently, the 400 kV Dhalkebar–Muzaffarpur transmission line is the only high-capacity cross-border line operational, able to transmit around 1,000 MW of electricity.

Another project, the 400 kV Butwal–Gorakhpur cross-border transmission line, is under construction.

Additionally, the Dhalkebar–SitNepal, India, marhi cross-border transmission line is also being developed by SJVN Arun-3 Power Development Company, with funding from SJVN Limited.

Since the start of the fiscal year 2025–26 in mid-July, Nepal has exported electricity valued at NPR 15 billion (approximately Rs 9.37 billion), highlighting electricity as one of the country's vital export commodities, as reported by Nepal's Energy Ministry.