India and Nepal have decided to form a joint task force to build a hydroelectric project utilising funds from both countries.

The officials from the Ministry of Energy, Water Resources, and Irrigation told the media that the agreement was formed in Kathmandu at the 9th meeting of the Nepal-India Energy Secretary-Level Joint Steering Committee.

Chiranjivi Chataut, Joint Secretary, Ministry of Energy, Water Resources and Irrigation, informed that discussion of problems like transmission lines between the two countries, the Arun III hydropower and transmission line, under-construction and proposed interstate transmission lines, and interstate power trade was done at the meeting.

Both the countries agreed to increase the energy capacity imported and exported through the Dhalkebar-Muzaffarpur interstate 400 KV transmission line.

The transmission line for 400 kV would be 140 kilometres long (20 km in Nepali territory and the rest 120 in Indian territory).

As per the agreement, the Nepal Government is liable for managing the budget for the project's construction.

According to the sources, India welcomed the proposal of Nepal Electricity Authority (NEA) to export electricity to the country.

NEA has requested India to approve a proposal to export 850 megawatts of electricity to India before the monsoon season starts.

Besides this, India is also developing a hydroelectric project in Nepal, which is currently under construction.

Satluj Jal Vidyut Nigam (SJVN) is implementing the 900-MW Arun-III hydroelectric project (Arun-IIIHEP) in Nepal via its wholly-owned subsidiary SAPDC.

The project is likely to be completed by the financial year (FY) 2023-24, further strengthening the relationship between both nations.

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