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India’s draft electricity policy signals fresh export prospects for Nepal

himalaya Diary News Service by himalaya Diary News Service
February 8, 2026
in Business, India
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India allocates INR 8 billion grant for Nepal in 2026 budget
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India’s Ministry of Energy has unveiled a draft National Electricity Policy 2026, marking its first major revision in two decades. The policy promotes cross-border electricity trade under the “One Sun, One World, One Grid” initiative and prioritizes renewable energy sources such as solar, wind, hydropower, battery storage and green hydrogen. With India targeting 80 percent non-fossil fuel capacity by 2047, Nepal could benefit from expanded hydropower export opportunities. The policy signals greater regional energy cooperation and potential easing of restrictive import rules, positioning Nepal as a long-term energy partner rather than a seasonal supplier.

 

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