Nepal-India Power Trade: Export Capacity Rises to 1,650 MW (2026)

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In July 2026, Nepal and India agreed to raise Nepal’s electricity export capacity to India from 1,100 MW to 1,650 MW. Energy trade with India is a frequent Lok Sewa topic, so here are the verified key facts.

The July 2026 Agreement

DirectionEarlier capacityNew capacity
Export (Nepal to India)1,100 MW1,650 MW (+550 MW)
Import (India to Nepal)1,000 MW1,400 MW
  • The decision was made at the 13th meeting of the Nepal–India Joint Steering Committee (JSC) on energy cooperation, held at energy-secretary level in Pokhara in July 2026.
  • The capacity is the combined transfer capacity of the Dhalkebar–Muzaffarpur and Dhalkebar–Sitamarhi 400 kV cross-border lines.
  • Actual exports depend on India approving the list of Nepali hydropower projects allowed to sell power under the new limit.

After the Bhote Koshi Flood: Imports in Winter

  • The 26 August 2026 Bhote Koshi flood damaged about a dozen power projects and transmission lines in Nepal.
  • In September 2026, India approved supplying up to 654 MW to Nepal for 18 hours a day (midnight to 6 pm) from 13 September to 31 December 2026, to cover Nepal’s expected winter shortfall of 350–400 MW.
  • Export quantities from January 2027 will be reviewed in December 2026.

Cross-Border Lines to Remember

  • Dhalkebar–Muzaffarpur 400 kV: Nepal’s first 400 kV cross-border line. Dhalkebar is in Dhanusha, Nepal; Muzaffarpur is in Bihar, India.
  • New Butwal–Gorakhpur: connects Nepal with Uttar Pradesh. It will first run at 220 kV until the New Butwal substation is completed (planned for December 2027).
  • Tanakpur–Mahendranagar 132 kV: an older link in the far west.

Practice MCQs

  1. Under the July 2026 agreement, Nepal’s power export capacity to India rose to:
    a) 1,100 MW b) 1,400 MW c) 1,650 MW d) 2,000 MW
    Answer: c) 1,650 MW
  2. Where was the 13th Nepal–India Joint Steering Committee meeting on energy held in 2026?
    a) Kathmandu b) New Delhi c) Pokhara d) Patna
    Answer: c) Pokhara
  3. Dhalkebar substation is in which district?
    a) Mahottari b) Dhanusha c) Sarlahi d) Siraha
    Answer: b) Dhanusha
  4. The New Butwal–Gorakhpur line connects Nepal with which Indian state?
    a) Bihar b) Uttarakhand c) Uttar Pradesh d) West Bengal
    Answer: c) Uttar Pradesh
  5. Why did Nepal need extra power imports from India in late 2026?
    a) A new cement industry b) Flood damage to power projects c) Lower rainfall d) A transmission strike
    Answer: b) Flood damage to power projects

Related Notes

Sources: Khabarhub: Nepal and India agree to raise export capacity to 1,650 MW; The Kathmandu Post: 550 MW more export under new agreement; The Kathmandu Post: India approves 654 MW supply to Nepal. Last updated: 20 October 2026.

Why this matters for Lok Sewa

  • Energy trade with India is a frequent topic in the economy and foreign relations sections.
  • Link it with Nepal’s trade deficit and hydropower development in long answers.

Quick practice questions

  1. Nepal’s export capacity to India was raised to how many MW? Answer: 1,650 MW (from 1,100 MW).
  2. Which cross-border lines carry this power? Answer: The Dhalkebar–Muzaffarpur and Dhalkebar–Sitamarhi 400 kV lines.

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