The Minister for Energy, Water Resources and Irrigation, Deepak Khadka, and India's Minister for Power, Housing and Urban Affairs, Manohar Lal Khattar, has signed an important agreement for the expansion of the cross-border transmission line between Nepal and India.

The agreement was signed in the presence of both ministers during Khattar’s two-day visit to Nepal. This agreement marks a significant step towards the development of the energy sector between the two countries.

On February 12, 2025, an agreement was made to establish a joint company for the construction of the 400 kV Inaruwa–New Purnia and Dododhara–Bareilly transmission lines during the 12th meeting of the Nepal-India Secretary-Level Joint Steering Committee held in New Delhi. Following this, a Memorandum of Understanding (MoU) was signed to move forward with the establishment of the company.

Kamal Acharya, director of the Nepal Electricity Authority, signed the agreement on behalf of Nepal, while Yatindra Dwivedi, director of Power Grid Corporation of India Limited (PGCIL), signed the agreement on behalf of India.

According to the agreement, the joint company to be established for the construction of the two transmission lines will have 51 percent share ownership by Nepal for the company established on the Nepal side and 51 percent share ownership by India for the company established on the Indian side. The remaining 49 percent will be owned by the other party.

The length of the Inaruwa–New Purnia transmission line is approximately 25 kilometers on the Nepal side and 100 kilometers on the Indian side, while the Dodhara–Bareilly transmission line is about 35 kilometers on the Nepal side and 150 kilometers on the Indian side.

During the event, Energy Minister Khadka emphasized that this agreement is significant for the energy development of both countries. He also expressed gratitude for the support that India has provided in the development of Nepal's energy sector.