India has approved up to 654 MW of electricity exports to Nepal for 18 hours a day until December 31, 2026, after devastating floods damaged the Himalayan country’s hydropower infrastructure and knocked more than 400 MW of generation capacity offline.
The approval, effective from September 13, allows up to 600 MW through the Muzaffarpur-Dhalkebar 400 kV line and 54 MW through the Tanakpur–Mahendranagar 132 kV line. Nepal’s energy crisis follows the August 26 Bhote Koshi flood, which Foreign Minister Shisir Khanal described as a “Himalayan tsunami”.
A rapid damage assessment estimates around NPR 151.45 billion (nearly $1 billion) in physical damage to the hydropower sector and NPR 390.62 billion (about $2.58 billion) for recovery and reconstruction. India’s response has also included more than 130 tonnes of relief supplies, 54 specialist personnel, tunnel-rescue equipment and forensic assistance for DNA identification.
Prime Minister Narendra Modi said India was ready to provide Nepal with “all possible humanitarian assistance”, while the Ministry of Power said the electricity approval would help Nepal meet its requirements and strengthen the longstanding energy partnership between the two countries.
A Lifeline Amid Power Losses
The electricity approval comes as Nepal grapples with an unusually severe disruption to its power system. The August 26 disaster damaged more than a dozen hydropower projects and resulted in over 400 MW of generation capacity being knocked offline, according to reporting from The Kathmandu Post.
The Nepal Electricity Authority has been forced to operate the Kulekhani reservoir-based hydropower scheme continuously, despite the plant traditionally being kept as a reserve for the dry winter months. India’s Ministry of Power said the floods had caused “significant damage” to Nepal’s hydropower infrastructure, reducing domestic generation and creating an additional requirement for electricity.
The approved supply will run from midnight to 6 pm each day, with the quantum of power to be exported from January 2027 set to be reviewed in December. The arrangement is significant because Nepal’s electricity system is overwhelmingly dependent on hydropower and normally experiences a seasonal shift: river flows are higher during the monsoon, enabling greater generation and exports, while output declines during the dry months.
The floods have disrupted that cycle much earlier and more severely than usual. The disaster has also had a deeply personal dimension. At the Upper Trishuli 3A Hydropower Station, mechanical foreman Sanjay Sah survived after being trapped in a tunnel for nine days, while many others connected to affected hydropower projects remain missing.
Media reported that more than 5,300 people were missing across Nepal and Tibet in the aftermath of the disaster, including hundreds of power-sector workers.
From Rescue To Reconstruction
The scale of the infrastructure damage explains why electricity imports are only one part of Nepal’s immediate needs. A Rapid Damage and Needs Assessment has estimated NPR 151.45 billion in physical damage to the hydropower sector, while approximately NPR 390.62 billion will be required for recovery and reconstruction.
The assessment identified 13 hydropower projects with a combined capacity of 783 MW among the damaged infrastructure, alongside damage to access roads, transmission systems and supporting structures. It also recorded 917 employees and workers associated with affected projects as unaccounted for at the time of assessment.
India’s assistance has consequently extended beyond electricity. The Indian Air Force’s eighth special flight reached Kathmandu on September 9 carrying another 35 tonnes of relief material, taking the total Indian airlift to more than 130 tonnes.
Supplies included shelters, medicines, solar lamps, water-purification equipment and specialised rescue gear. India also deployed 54 specialist personnel to support search, rescue and forensic operations, with teams working alongside Nepali authorities at difficult tunnel sites, including Chilime.
DNA kits, reagents and forensic equipment were provided to assist with victim identification. Nepal’s Foreign Minister Shisir Khanal, briefing diplomats on September 3, described the August 26 disaster as a “Himalayan tsunami”, saying the government’s priorities were saving lives, search and rescue, and ensuring the safety of foreign nationals.
The response has also involved Indian states: Gujarat authorities, for instance, have collected DNA samples from relatives of people missing in Nepal and are sharing profiles with Nepali authorities to help identify recovered remains.
The India-Nepal Energy Link
The emergency electricity arrangement builds on an increasingly interconnected energy relationship between India and Nepal. Nepal has traditionally experienced electricity shortages during the dry season but has increasingly been able to generate surplus hydropower during the monsoon and sell electricity to India.
In fiscal year 2025-26, Nepal exported electricity worth NPR 29.32 billion to India and Bangladesh while importing electricity worth NPR 10.55 billion, according to The Kathmandu Post. The current disaster has temporarily reversed the balance, with Nepal requiring additional imports after losing more than 400 MW of generation capacity.
India’s latest approval covers 600 MW through the Muzaffarpur–Dhalkebar transmission corridor and another 54 MW through Tanakpur-Mahendranagar. Officials have stressed that the arrangement is intended to help Nepal meet its immediate power requirements while reinforcing bilateral energy cooperation.
Prime Minister Modi had also spoken to Nepal’s Prime Minister Balendra Shah shortly after the disaster, conveying condolences and saying India was ready to provide humanitarian assistance, with Indian teams coordinating with Nepalese authorities on rescue and relief.
For Nepal, however, the electricity support is a temporary bridge rather than a substitute for rebuilding its own generation system. The damage to hydropower plants, transmission lines, roads and other infrastructure will require years of investment and coordination.
Nepal has also sought wider international assistance for reconstruction, while the country’s authorities continue rescue, recovery and identification efforts. India’s response therefore illustrates how energy cooperation, disaster relief and regional infrastructure are increasingly interconnected between the two neighbours.
The Logical Indian’s Perspective
Disasters of this scale remind us that borders may divide countries politically, but rivers, mountains, infrastructure and human lives often connect them in ways that cannot be contained by national boundaries.
India’s decision to support Nepal with electricity, relief material, rescue expertise and forensic assistance comes at a moment when the neighbouring country is dealing not only with loss of life but also with the destruction of critical infrastructure and uncertainty surrounding thousands of missing people.
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