India Approves Power Supply to Nepal for 18 Hours a Day Until December 31

India has approved the supply of up to 654 MW of electricity to Nepal for 18 hours a day until December 31, as extensive damage to hydropower infrastructure from the August 26 floods threatens Nepal's electricity supply.

India's Ministry of Power approved the arrangement from September 13, allowing Nepal Electricity Authority (NEA) to import up to 600 MW through the Muzaffarpur-Dhalkebar 400 kV transmission line and 54 MW through the Tanakpur-Mahendranagar line, according to All India Radio. 

The arrangement will be reviewed in December for possible continuation from January.

The approval comes after the floods damaged 13 hydropower projects with a combined capacity of 759 MW in Rasuwa and Nuwakot, according to the government's Rapid Damage and Needs Assessment (RDNA). Seven of the affected projects, with a combined capacity of 250.4 MW, were operating before the disaster, while six projects totalling 508.625 MW were under construction. Five operating solar plants with a combined capacity of 24.36 MW were also affected.

The RDNA, prepared by the National Disaster Risk Reduction and Management Authority (NDRRMA) in collaboration with the National Planning Commission, local governments and other agencies, estimates Rs 151.04 billion in total damage and economic losses to the energy sector. This includes Rs 134.69 billion in physical damage and Rs 16.35 billion in economic losses.

The assessment estimates that Rs 390.62 billion will be required to restore and reconstruct the energy and power-grid systems damaged by the disaster.

The energy assessment covers hydropower and solar projects as well as substations, transmission lines, switchyards and distribution infrastructure. Hydropower accounted for Rs 119.95 billion, or 89.1 percent, of physical energy-sector damage.

The RDNA estimates an annual loss of 2,520 GWh of hydropower generation and 210.48 GWh of solar generation, with the estimated generation losses valued at Rs 16.05 billion. The assessment notes that the recovery estimate represented an indicative planning requirement rather than an itemised programme cost. 

The wider disaster caused Rs 274.48 billion in direct physical damage and Rs 133.81 billion in economic losses, taking total damage and losses to about Rs 408.29 billion. The government estimates overall recovery and reconstruction needs at more than Rs 723 billion, with infrastructure accounting for the largest share.

The August 26 floods were triggered by an ice-rock avalanche near the Nepal-Tibet border in Rasuwa and devastated settlements and infrastructure along the Bhote Koshi-Trishuli river system.

The disaster has also created a major human toll. The death toll reached 1,388 by Sunday, September 13, with 5,130 people still missing and 13,728 rescued, according to NDRRMA.

Nepal has rapidly expanded its electricity generation capacity in recent years and emerged as a seasonal exporter of power. Nepal's installed electricity generation capacity reached 4,120 MW by the end of FY2025/26, after 529 MW was added during the fiscal year, according to the Nepal Electricity Authority's latest annual report.

Nepal exported electricity worth Rs 29.31 billion in FY2025/26, while spending Rs 10.56 billion on electricity imports from India. Export earnings were 68 percent higher than in the previous fiscal year, according to NEA.

The August 26 disaster highlights the vulnerability of Nepal's power system to major disruptions even as the country expands hydropower generation and seeks to increase electricity exports. 

Nepal continues to rely on imports from India during periods when domestic generation is insufficient, particularly in winter when hydropower output falls.

The government has set a target of increasing installed electricity generation capacity to 28,500 MW by 2035, making the resilience of hydropower projects, transmission infrastructure and other energy assets increasingly important to the country's energy and export ambitions.