POWERGRID has entered into two important Joint Venture and Shareholders’ Agreements with the Nepal Electricity Authority. According to the communication sent on 22 November 2025, the agreements were originally signed on 29 October 2025, and the company received the duly stamped copies from Nepal Electricity Authority on 21 November 2025. These agreements pave the way for creating two separate joint venture companies, one in India and one in Nepal, to develop major high-capacity cross-border transmission lines between the two countries.
The project involves building two 400 kV Double Circuit (Quad Moose) transmission links. One line will connect Inaruwa in Nepal to New Purnea in India, and the other will link Lamki (Dododhara) in Nepal with Bareilly in India. These transmission systems are being developed to strengthen cross-border electricity exchange and support the growing power needs of India and Nepal.
POWERGRID and the Nepal Electricity Authority will jointly hold equity in both companies in different proportions. For the joint venture in India, POWERGRID will hold 51% of the shares while NEA will hold 49%. For the joint venture in Nepal, NEA will hold the majority stake of 51%, and POWERGRID will hold 49%. Both entities will subscribe to shares in proportion to their agreed shareholding, and the initial shares will be issued at par value.
The agreements also describe how the board of directors will be structured. In the Indian joint venture, the board will have five directors, with POWERGRID nominating three and NEA nominating two. In the Nepal joint venture, the board will also have five directors. POWERGRID will nominate two directors, NEA will nominate two, and NEA will recommend an independent director. Until the independent director is appointed, NEA will nominate a third director. Any change in the capital structure of these companies will require consent from both POWERGRID and NEA.
POWERGRID clarified that there is no related-party relationship with NEA, and these agreements do not fall under related-party transactions. The company also confirmed that there are no conflicts of interest and no additional disclosures relating to amendments or termination of the agreement at this stage.
These steps mark a significant development in regional energy cooperation and are aimed at building long-term, high-capacity power transfer systems between India and Nepal.
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Hi,
This is a fantastic and significant step forward for regional energy security and renewable integration. A joint venture between Powergrid and the Nepal Electricity Authority creates a powerful framework to not only facilitate power exchange but to strategically develop the grid infrastructure needed for the future. This is exactly the kind of collaboration needed to optimize the hydro-rich resources of the Himalayas with India’s massive energy demand.
My question is regarding the operational challenges: Given the complex topography of the region and the need for long-distance transmission, what are the primary technological considerations for this project? For instance, will these new cross-border lines utilize High Voltage Direct Current (HVDC) technology to minimize transmission losses over such distances, or are there other specific engineering approaches being prioritized?
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