India to export power to Nepal till Dec 31 after devastating flash floods

India has approved the export of power to Nepal for 18 hours a day until December 31. This follows last month’s devastating flood in Nepal that wiped out about a tenth of its generation capacity. India’s power ministry said on Monday that approval had been given to export up to 654 megawatts. The quantum of power to be exported from January will be reviewed in December.

The flash floods were triggered on August 26 by an ice-rock avalanche in the high Himalayas near the Nepal-Tibet border. The floods devastated towns and villages in northern and central Nepal. Around 1,400 people were killed in Nepal and Tibet. More than 12 hydropower plants in Nepal were swept away. Over 5,300 people remain missing, including about 900 power station workers. A government-led assessment released on Saturday estimated recovery and reconstruction needs at USD 4.7 billion.

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In its statement, the ministry said the approval will help Nepal meet its power requirements during this difficult period. It also said the move will strengthen the close and longstanding energy cooperation between India and Nepal.

Hydropower supplies almost all of Nepal’s electricity and has become a fast-growing source of export revenue. After the flood damaged Bagmati province, Nepal’s main hydropower-producing region, the country halted power exports. Nepal said it would buy electricity from India to cover domestic shortages in the coming months.

The Rapid Damage and Needs Assessment for the Rasuwa-Bhotekoshi Flood 2026, led by Nepal’s National Disaster Risk Reduction and Management Authority, estimated total damage at around USD 2.7 billion. Physical damage was estimated at USD 1.81 billion and economic losses at USD 883.32 million. The assessment noted that the larger recovery figure includes reconstruction and disaster-risk reduction measures, not just replacement of damaged assets.

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The assessment covers Rasuwa, Nuwakot, Dhading, Gorkha and Chitwan districts. It used sector submissions, administrative records, satellite imagery, drone surveys, geospatial data and census information. Where direct inventories were incomplete, estimates were based on mapped exposure, statistical relationships and costing assumptions.

The Bhotekoshi River carried floodwaters downstream, sweeping away homes, vehicles, roads and bridges, and damaging hydropower projects. Energy-sector physical damage was estimated at USD 889.21 million and economic losses at USD 107.91 million. An annual hydropower generation loss of 2,520 GWh was estimated, though generation baselines and outage periods require further verification.

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Infrastructure accounts for 65.47% of total recovery needs. The road assessment recorded 69 km of damaged road, including 55 km on the Betrawati-Rasuwagadhi section classified as completely damaged and 14 km partially damaged. Road recovery needs were estimated at USD 364.28 million. The immediate programme includes debris clearance, reopening tracks, temporary diversions, alternative-route maintenance, and emergency slope and bank protection.