India’s Ministry of Power has approved the export of up to 600 megawatts of electricity to the Nepal Electricity Authority for eighteen hours a day, from midnight to 6 pm, via the Muzaffarpur-Dhalkebar cross-border transmission line. The arrangement runs from September 13 to December 31, 2026, covering Nepal’s peak winter demand season.
The approval formalises one of the largest single tranches of cross-border power trade between the two neighbours in recent years and comes as Nepal faces a seasonal hydropower generation dip during the dry winter months, when its own run-of-river hydro plants produce well below capacity. India’s surplus thermal and renewable generation capacity is being tapped to bridge that gap under the existing bilateral power trade framework.
How Will the 600 MW Export Affect Cross-Border Power Trade?
The Muzaffarpur-Dhalkebar line has been a key artery for India-Nepal power trade since it was commissioned, and this latest allocation significantly increases the volume flowing through it during winter months. Power sector analysts say the deal strengthens India’s position as Nepal’s primary electricity supplier during its lean season, while also giving Indian power generators, particularly in the eastern grid, additional revenue from surplus capacity that would otherwise go unutilised.
What Do Power Sector Officials and Analysts Say?
Officials at the Central Electricity Authority said the export volume was calculated based on projected surplus in the northern and eastern regional grids during the specified period, ensuring no compromise to domestic supply commitments. Industry watchers noted that cross-border power trade with Nepal and Bangladesh has become an increasingly important revenue stream for Indian power generation and transmission companies as domestic grid capacity has expanded faster than peak domestic demand in several regions.
Market and Trade Reaction
Shares of power generation and transmission companies with exposure to cross-border trade saw modest gains following the announcement. Analysts said the deal is unlikely to materially move sector earnings on its own but reinforces a broader trend of India monetising surplus generation capacity through regional power trade agreements with Nepal, Bangladesh and Bhutan.
What Happens Next?
The export arrangement will be reviewed ahead of its December 31, 2026 expiry, with officials indicating a renewal or expanded allocation is likely given Nepal’s continuing winter power deficit. The Ministry of Power is also evaluating additional cross-border transmission capacity to support higher future export volumes.
Frequently Asked Questions
How much power will India export to Nepal under this approval?
India has approved exports of up to 600 megawatts to Nepal for eighteen hours daily, from midnight to 6 pm, via the Muzaffarpur-Dhalkebar transmission line.
How long does the India-Nepal power export arrangement last?
The current approval covers the period from September 13, 2026 to December 31, 2026, aligning with Nepal’s winter hydropower generation shortfall.
Why does Nepal need power imports from India in winter?
Nepal relies heavily on run-of-river hydropower, which produces significantly less electricity during the dry winter months, making imports from India necessary to meet peak demand.
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