The Indian government has approved the export of 654 megawatts (MW) of electricity to Nepal Electricity Authority for 18 hours every day from September 13, 2026 to December 31, 2026. According to the power ministry, the approval covers up to 600 MW through the Muzaffarpur-Dhalkebar 400 kilovolt double-circuit line and up to 54 MW through the Tanakpur-Mahendranagar 132 kilovolt single-circuit line. The ministry stated that the quantum of power to be exported from January 2027 will be reviewed in December 2026. As per CNBC TV18, the power will be exported from midnight to 6 PM every day, with India providing power as per the needs of Nepal, and currently processed requests from Nepal to export power with effect from September 2026. The latest approval allows Nepal to import around 654 MW of peak electricity during non-solar hours through power exchanges, with Kathmandu seeking advance import approvals effective September to mitigate generation deficits caused by recent flash floods.
The approval comes as Nepal faces devastating hydropower infrastructure damage following a deadly flood disaster. The deluge, triggered by the collapse of a glacier, has killed nearly 1,400 people in Nepal and Tibet and swept away more than 12 hydropower plants in Nepal. About 900 power station workers are among more than 5,300 people still missing. The flood ravaged the Bagmati province, Nepal's main hydropower-producing region, causing severe local infrastructure damage and disrupted power generating stations. Before the floods, Nepal had 4,200 MW of installed and operational power generation capacity, but the disaster has wiped out about a tenth of its generation capacity. Hydropower, which supplies almost all of Nepal's electricity, had become a fast-growing source of its export revenue, but the floods have forced the country to halt power exports and seek electricity imports from India to cover domestic shortages in the coming months.
The power ministry emphasized that 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. India remains committed to supporting Nepal and strengthening bilateral cooperation in the energy sector. A senior power ministry official told Business Standard that the cut in hydropower flows from Nepal to India was unlikely to have any discernible impact on New Delhi's domestic supplies, with the impact of the flash floods and damage to hydro projects on India's power grid being minimal and fully manageable. Sources added that India will provide power as per the needs of Nepal, with currently the requests from Nepal to export power with effect from September 2026 being processed, usually Nepal seeks power from India from October. The request to facilitate increased power flow to Nepal as needed has been processed in accordance with established frameworks, including trade through the day-ahead market and real-time market segments of the Indian power exchanges.
The advance approval for Nepal comes at a time when India is witnessing unusual domestic power demands due to weather and irrigation needs. India's peak power demand has been hovering above 260 GW, which is unusually high for September. On September 10, the peak power demand met was 269 GW, while in non-solar hours on the same day, peak demand was 236 GW, with a shortage of 6.1 GW. While solar hours are seeing sufficient generation to provide for the overall power demand in the country, non-solar hours have pressured coal-based and gas-based power plants. Cross-border power flow to India is currently reduced by around 400 MW from its previous peak export levels of around 950-1,000 MW due to Nepal's reduced generation capacity. As per The Economic Times, India's national power grid remains manageable despite these cross-border flow changes, with the impact on India's power grid being minimal and fully manageable.
