India has approved the export of up to 600 megawatts of electricity to Nepal to help the country address power shortages caused by extensive damage to hydropower facilities during last month’s devastating floods.
The approval was announced by India’s Ministry of Power on Monday, with the electricity supply expected to continue until the end of 2026.
Under the arrangement, India will transmit up to 600MW of electricity to Nepal for 18 hours each day.
“The approval will help Nepal meet its power requirements during this difficult period and further strengthen the close and longstanding energy cooperation between India and Nepal,” the ministry said in a statement.
The amount of electricity to be supplied from January 2027 will be reviewed in December.
Floods Damage Nepal’s Hydropower Sector
Nepal’s power supply was severely affected after catastrophic floods damaged at least 12 hydropower projects.
The August 26 disaster, reportedly triggered by a glacial mountain collapse along the China-Nepal border, caused widespread destruction in Nepal and Tibet.
More than 1,400 people were killed, while hundreds of workers at hydropower projects were among more than 5,300 people still reported missing in Nepal.
The damage forced authorities to suspend electricity exports from Nepal, putting additional pressure on the country’s domestic power supply.
Nepal’s Foreign Ministry estimated that rebuilding infrastructure damaged by the floods could cost about $4.78bn.
The disaster has also renewed concerns about the impact of climate change on Nepal, with Prime Minister Balendra Shah vowing to raise the issue with the international community.
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Nepal’s Growing Reliance on Hydropower
Nepal has significantly expanded electricity access over the past two decades through major investments in hydropower.
According to the International Energy Agency, four out of five Nepalis lacked access to electricity at the turn of the century. Since then, hydropower development has helped connect almost all of the country’s population of about 30 million people to the electricity grid.
Hydropower has also become an important source of export revenue, with Nepal supplying electricity to neighbouring India and Bangladesh.
The recent floods, however, disrupted that progress after damaging several major hydropower facilities.
Nepal also observed a national day of mourning on September 7 for victims of the disaster, with flags flown at half-mast and candlelight vigils held as rescue and recovery efforts continued.
India’s latest electricity export approval is therefore expected to provide temporary support to Nepal while the country works to restore damaged power infrastructure and rebuild communities affected by the floods.