New Delhi has sanctioned the export of up to 654 megawatts (MW) of electricity to Nepal for 18 hours each day, a measure set to continue until December 31. This decision comes in response to severe flash floods that struck Nepal last month, wiping out approximately a tenth of its total power generation capacity.
The Indian power ministry confirmed the approval on Monday, stating that the quantum of power to be exported beyond December will be reviewed later in the year. The devastating floods, triggered on August 26 by an ice-rock avalanche in the high Himalayas near the Nepal-Tibet border, ravaged towns and villages across northern and central Nepal.
Devastation and Damage Assessment
The catastrophic event resulted in an estimated 1,400 fatalities in Nepal and Tibet, with over 5,300 people still reported missing, including around 900 power station workers. More than a dozen hydropower plants in Nepal were swept away or severely damaged, crippling the nation's energy infrastructure.
A government-led assessment released recently estimated the total recovery and reconstruction needs for Nepal at a staggering USD 4.7 billion. Specifically, the Rapid Damage and Needs Assessment for the Rasuwa-Bhotekoshi Flood 2026 identified physical damage at approximately USD 1.81 billion and economic losses at USD 883.32 million. The energy sector alone suffered an estimated USD 889.21 million in physical damage and USD 107.91 million in economic losses, along with an annual hydropower generation loss of 2,520 GWh.
Strengthening Energy Cooperation
Hydropower is the primary source of electricity for Nepal and has become a growing source of export revenue for the country. However, following the damage to Bagmati province, Nepal's main hydropower-producing region, the nation was forced to halt its power exports and announced plans to purchase electricity from India to cover its domestic shortages.
The Indian ministry emphasized that this approval will significantly assist Nepal in meeting its immediate power requirements during this challenging period. Furthermore, the move is expected to bolster the already close and longstanding energy cooperation between India and Nepal, reinforcing bilateral ties in a time of crisis.
Infrastructure Recovery
The comprehensive damage assessment covered districts including Rasuwa, Nuwakot, Dhading, Gorkha, and Chitwan. It highlighted that infrastructure accounts for 65.47% of the total recovery needs. Road damage alone was estimated at 69 km, with 55 km on the Betrawati-Rasuwagadhi section completely destroyed. Road recovery needs are projected at USD 364.28 million, focusing on debris clearance, reopening routes, and emergency slope protection.