Indian authorities are reviewing requests to boost increased electricity transmission to Nepal under established frameworks, including trade through day-ahead and real-time market segments on Indian power exchanges, local media reported on August 30.

Sources familiar with the matter noted that Nepal has requested advance import approvals starting in September to mitigate generation shortfall caused by recent flash floods. The request involves bringing forward electricity imports, as Nepal typically begins importing power from India during the lean winter months from October onward.

India will supply electricity according to Nepal's requirements, sources added. India also imports power from Nepal. While flash floods in the Trishuli and Lhende Khola river basins on August 26 inflicted severe infrastructural damage, including power generation facilities in Nepal, the impact on India's national power grid remains minimal and fully manageable, industry executives said.

Nepal's domestic generation capacity has dropped by about 550 MW due to damaged installations, an executive said. Cross-border power flows to India have fallen by around 400 MW from earlier peak export levels of around 950-1,000 MW, the executive added.

A power ministry official stated that there is no need for exceptional emergency procurement or alternative measures to balance domestic demand arising from the shortfall. The official explained that India's vast national grid capacity and strong generation reserves can absorb a temporary 400 MW reduction without disrupting grid stability or retail supply.

Major cross-border transmission corridors, including the high-capacity 400 kV Dhalkebar-Muzaffarpur link with a transfer capacity of 1,000 MW, continue to run normally, the industry executive said.

The executive noted that key projects being developed by Indian public sector undertakings in Nepal, such as the under-construction 900 MW Arun-3 and 669 MW Lower Arun projects in the Arun River basin, are located in areas unaffected by the floods and remain on schedule without disruption.