Gorakhpur–New Butwal 400 kV Cross-Border Interconnection

Summary

Nepal's second major 400 kV cross-border link, under construction between New Butwal and Gorakhpur. POWERGRID's FY 2024/25 annual report records a 50:50 NEA–POWERGRID joint venture for the Indian portion. The Nepal and India sections, terminal works and the domestic New Butwal evacuation path must be monitored separately; a project-wide target year is not proof that all components are ready.

Key Facts

Parameter	Value
Voltage	400 kV
Status	Under construction
Nepal terminal	New Butwal (Rupandehi)
India terminal	Gorakhpur (Uttar Pradesh)
Length	~~130 km (~~18 km Nepal + ~112 km India)
Indian-side owner	Butwal-Gorakhpur Cross Border Power Transmission Limited (50:50 NEA–POWERGRID JV)
Nepal-side owner	Nepal Electricity Authority (NEA)
Commissioning	No firm current project-wide date established
Interconnection ID	`gorakhpur_new_butwal`

Current Status

As of 10 July 2026: under construction. The segment record separates the two countries and treats synchronized testing and New Butwal's domestic-grid connection as explicit dependencies.

Segment	Status	Evidence date	Dependency
New Butwal–Nepal/India border	Under construction	Verified 10 Jul 2026	New Butwal terminal and domestic evacuation readiness
Nepal/India border–Gorakhpur	Under construction	POWERGRID FY 2024/25	Synchronized Nepal-side completion and cross-border testing

Recent Updates

Date	Update	Source
31 Mar 2025	POWERGRID recorded the 50:50 implementing JV and its paid-up capital	POWERGRID FY 2024/25 annual report
31 Jul 2025	The stated 22-month PMC period for the Indian portion elapsed; no public completion outcome is established by the reviewed POWERGRID records	POWERGRID FY 2023/24 annual report
2 Jun 2023	India and Nepal jointly carried out the groundbreaking	Embassy of India record

Active Blockers

Blocker	Prevents	Monitoring requirement
Nepal and India segment schedules may diverge	Synchronized commissioning	Country- and package-level progress evidence
New Butwal terminal and domestic evacuation readiness	Transfer of cross-border capacity into Nepal's grid	Integrated testing and energisation record
Current trading and transmission-charge arrangements are not documented in this dossier	Commercial use	Applicable approved agreements and regulatory orders

Significance

Redundancy for the eastern link. Full N-1 cross-border security for the first time once both operate in parallel.
Western evacuation. Opens a direct export door for Gandaki Basin and Karnali Basin generation — which has historically had no outlet matching its latent capacity.
MCA corridor payoff. The US-funded MCA Central 400 kV Corridor (Lapsiphedi–Ratmate–Hetauda–Damauli–Butwal) spine has little export value without this link — the two projects are schedule-linked in NEA's integrated resource plan.

Limitations & Controversies

Schedule history. Public target dates have moved. The monitoring record therefore requires dated segment evidence instead of carrying the latest announced year forward as a firm date.
Nepal-side readiness. New Butwal substation 400 kV bays await final MCA corridor completion; misalignment of the two projects could strand capacity on either side.
Tariff mechanism. Cross-border trading charges for this link have not yet been fully negotiated under the 2021 cross-border guidelines.