Powerful Partnerships: India-Nepal Seal Milestone Deals with JSC Meeting

In a historic development, the 11th meeting of the Joint Steering Committee on Power Sector Cooperation (JSC) took place in Chitwan on January 5, 2024. The committee, co-chaired by Pankaj Agarwal, Secretary, Ministry of Power, Government of India, and Gopal Prasad Sigdel, Secretary (Energy), Ministry of Energy, Water Resources and Irrigation, marked a significant milestone following the signing of the Agreement on Long Term Power Trade between India and Nepal on January 4, 2024.

Preceding the JSC meeting, the 11th meeting of the Joint Working Group on Power Sector Cooperation (JWG) was held on January 3, 2024, in Kathmandu. This meeting, co-chaired by Dr. D. Sai Baba, Joint Secretary, Ministry of Power, and Nabin Raj Singh, Joint Secretary, Ministry of Energy, Water Resources and Irrigation, Government of Nepal, paved the way for comprehensive discussions on bilateral power sector cooperation.

The agenda included a thorough review of power trade, progress in hydropower projects, and advancements in transmission lines. Discussions extended to various bilateral committees, with a focus on the Joint Technical Team (JTT).

A noteworthy outcome of the meeting was the approval of modalities for cross-border power trade through 132 kV and below transmission lines. This decision gains particular significance with the inauguration of three new 132 kV lines on January 4, 2024: the second circuit of Raxaul-Parwanipur, the second circuit of Kataiya-Kusaha, and the New Nautanwa-Mainhiya transmission line. These lines collectively add 200 MW transmission capacity, elevating the overall transmission capacity between India and Nepal to 1400 MW. Notably, the New Nautanwa-Mainhiya transmission line establishes the first connection between Nepal and the state of Uttar Pradesh in India.

The commitment to realizing the India-Nepal Joint Vision Statement on Power Sector Cooperation, issued during the visit of Prime Minister of Nepal to India in April 2022, was reaffirmed. Both sides agreed to convene the first meeting of the Joint Hydro Development Committee (JHDC) soon, showcasing their dedication to advancing hydroelectric projects collaboratively.

Power Secretary Pankaj Agarwal also held discussions with Hon’ble Minister for Energy, Water Resources and Irrigation of Nepal, Shakti Bahadur Basnet, before the JSC meeting, fostering diplomatic ties between the two nations.

As a testament to their commitment, both sides concluded the meeting with an agreement to continue discussions, planning to organize the next sessions of the JWG/JSC meetings soon under the auspices of the Indian side. The developments mark a significant leap forward in the power sector cooperation between India and Nepal, enhancing energy collaboration for mutual benefits.