Nepal-India Joint Commission Meeting: 4 Historic Agreements Signed, Rs10 Billion Grant for Earthquake Reconstruction & 10,000 MW Power Export Deal

5 January 2024 | Updated March 2026 | Bilateral Relations

Historic electricity export deal: 10,000 MW to India over next decade — Rs10 billion grant for post-earthquake reconstruction, 4 cross-border transmission lines inaugurated, and satellite launch collaboration announced.

Nepal-Kathmandu, The seventh meeting of the Nepal-India Joint Commission concluded with significant developments as both nations signed four agreements, addressing various aspects of their bilateral relations. The agreements, signed in the presence of Foreign Minister Narayan Prakash Saud and Indian Foreign Minister Dr. S. Jaishankar, cover the expansion of communication networks, trade, water resources, and energy.

📋 Four Key Agreements Signed

• 🤝 High-Impact Community Development Projects: Indian grant assistance for community development projects through government and non-government organizations, emphasizing mutual development and cooperation.
• ⚡ Long-Term Energy Trade Deal: Nepal to export 10,000 megawatts of electricity to India over the next decade — a historic step enabling cross-border electricity trade with Bangladesh through India's grid.
• 🌱 Renewable Energy Cooperation: Memorandum of Understanding between Nepal Electricity Authority (NEA) and National Thermal Power Corporation (NTPC) of India for renewable energy development.
• 🛰️ Satellite Launch Collaboration: Agreement between Nepal Institute of Science and Technology (NAST) and New Space India (NSIL) for Munal satellite launch service using polar satellite launch vehicle.

🔌 Transmission Line Infrastructure Boost

The joint inauguration of international transmission lines strengthens connectivity and energy exchange between the two nations:

• Raxaul-Parwanipur Line: 132 kV cross-border transmission line
• Kushaha-Kataiya Line: Enhancing power evacuation capacity
• New Nautanwa-Mainahia Line: 132 kV interconnection

💰 Rs10 Billion Grant for Earthquake Reconstruction

Adding to the significance of the meeting, the Government of India announced a grant of Rs10 billion to support post-earthquake reconstruction efforts in western Nepal. This financial aid demonstrates India's commitment to standing by its neighbor during times of crisis, specifically targeting rebuilding efforts in Jajarkot and surrounding earthquake-affected regions.

🤝 Diplomatic Engagement & Future Outlook

In a courtesy meeting between Indian Foreign Minister Dr. S. Jaishankar and Prime Minister Pushpa Kamal Dahal 'Prachanda,' both leaders expressed satisfaction with the progress of the agreements reached during the Prime Minister's visit to India. Prachanda acknowledged the historic step in implementing the electricity trade agreement and extended gratitude for India's support in economic development and earthquake recovery.

Foreign Minister Jaishankar assured the further strengthening of bilateral relations and pledged to actively implement the agreements. Prime Minister Prachanda hailed the concrete agreement for Nepal to export electricity, calling it a historic achievement with implications not only for India but also for electricity trade with Bangladesh via India's grid.

📈 Implications for Nepal's Economy & Energy Security

The 10,000 MW power export deal is expected to generate approximately NPR 150-200 billion annually in revenue once fully implemented, significantly boosting Nepal's foreign exchange earnings. The agreement also enables trilateral electricity trade with Bangladesh, opening new markets for Nepal's hydropower surplus during the monsoon season. The transmission line upgrades will reduce transmission losses and improve grid stability across the border region.