India’s Ministry of Power has renewed approval for Nepal to import up to 654 megawatts of electricity daily, even as export permits for three Nepali hydropower projects that had been selling power into the Indian grid remain unrenewed, according to details reported this week. The approval allows Nepal to draw power through an 18-hour daily window, from midnight to 6 PM, using the Muzaffarpur-Dhalkebar and Tanakpur-Mahendranagar transmission corridors through December 31, 2026.
The renewed import arrangement underscores the asymmetry currently shaping India’s cross-border power trade in its immediate neighbourhood: while India continues to support Nepal’s electricity needs during periods of domestic shortfall, three Nepali hydropower projects whose export approvals lapsed have not yet been renewed, leaving their ability to sell surplus power into India in limbo. Separately, power trade arrangements between India and Bangladesh remain uncertain amid the broader strain in bilateral relations since 2024.
What Does the 654 MW Import Approval Cover?
The approval permits Nepal to import as much as 654 megawatts of electricity daily from India for an 18-hour window spanning midnight to 6 PM, running through December 31, 2026, and routed via two established transmission corridors: Muzaffarpur-Dhalkebar and Tanakpur-Mahendranagar. This import capacity helps Nepal manage periods when its own hydropower generation, which is heavily seasonal and dependent on river flows, falls short of domestic demand, particularly during the dry season.
Why Haven’t the Nepali Export Permits Been Renewed?
Three Nepali hydropower projects that previously held approval to export surplus electricity to India have seen those permits lapse without renewal, though the specific regulatory or technical reasons for the delay have not been detailed publicly. The gap highlights the more complex, case-by-case nature of India-Nepal power trade compared to the relatively straightforward renewal of import access, with export approvals typically requiring additional scrutiny of project-specific factors including grid connectivity and compliance requirements.
Market and Trade Reaction
Nepali power developers and industry stakeholders are watching closely for movement on the stalled export permits, as renewed access to the Indian market remains commercially significant for hydropower projects built with export revenue in mind. Regional energy analysts note that India’s cross-border power trade policy continues to differentiate between neighbours, with Bangladesh’s power exchange arrangements remaining unsettled while Nepal’s import access has been extended relatively smoothly.
What Happens Next?
The 654 MW import approval remains valid through December 31, 2026, giving Nepal continued access to Indian grid power for the remainder of the year. Nepali authorities are expected to continue pursuing renewal of the three lapsed hydropower export permits, while officials on both sides may revisit the broader power trade framework as part of ongoing bilateral energy cooperation discussions.
Frequently Asked Questions
How much electricity can Nepal import from India?
India has approved Nepal to import up to 654 megawatts of electricity daily for an 18-hour window from midnight to 6 PM, through December 31, 2026.
Which transmission corridors are used for the power trade?
The import arrangement uses the Muzaffarpur-Dhalkebar and Tanakpur-Mahendranagar transmission corridors between India and Nepal.
What is the status of Nepal’s power export permits to India?
Export approvals for three Nepali hydropower projects that previously sold electricity to India have lapsed and have not yet been renewed.
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