What Happened
- Power Minister Manohar Lal Khattar, during discussions with Sri Lankan counterparts on March 19, 2026, announced that India is actively exploring power grid interconnections with Sri Lanka to boost cross-border electricity trade.
- The discussions covered three dimensions: expanding cross-border energy trade, facilitating the shift from coal-based generation to modern (renewable) sources, and establishing an undersea power transmission link through the Palk Strait.
- Khattar confirmed that India already supplies electricity to Nepal, Bangladesh, and Bhutan, and reaffirmed that Sri Lanka will be added to this regional network in the near future.
- The proposed link is a High-Voltage Direct Current (HVDC) underwater cable between Madurai (Tamil Nadu) and Anuradhapura (Sri Lanka) via the Palk Strait — a project under discussion for over a decade.
- The Power Grid Corporation of India (PGCIL) has envisioned a 500 MW or 1,000 MW transmission capacity for the undersea system.
Static Topic Bridges
India-Sri Lanka HVDC Interconnection: The Long-Pending Project
A submarine HVDC (High Voltage Direct Current) cable between India and Sri Lanka has been under study since at least 2010, when both governments signed a feasibility study agreement. The proposed route runs from Madurai (Tamil Nadu) to Anuradhapura (Sri Lanka), crossing the Palk Strait — approximately 65 km of undersea cable. HVDC technology is preferred for undersea long-distance transmission because it suffers lower power losses compared to HVAC (alternating current) over water. The project would allow Sri Lanka to import power from India's grid during its own generation shortfalls (droughts affecting hydro, maintenance periods) and export surplus renewable power to India in the future.
- Route: Madurai (Tamil Nadu, India) → Anuradhapura (Sri Lanka) via Palk Strait (~65 km undersea)
- Proposed capacity: 500 MW or 1,000 MW (PGCIL proposals)
- Technology: HVDC — preferred for undersea, long-distance transmission (lower losses)
- Status: feasibility study phase; agreement first signed 2010; discussions resumed multiple times since
- Sri Lanka's energy challenges: historically dependent on hydro (~35–40%) and thermal; vulnerable to droughts; 2022 crisis exposed energy vulnerability
Connection to this news: The 2022 Sri Lanka economic crisis, partly caused by foreign exchange collapse affecting fuel imports for thermal power, gave fresh urgency to the undersea cable project — providing Sri Lanka with a reliable power import source independent of fuel costs.
India's Neighbourhood Energy Diplomacy: Power as Soft Power
India has positioned cross-border electricity trade as a key element of its "Neighbourhood First" policy. India already exports electricity to Nepal (bilateral hydropower projects), Bangladesh (via HVDC links across the Bengal border), and Bhutan (which exports surplus hydropower to India under long-term agreements). This regional power grid integration serves multiple purposes: it deepens economic interdependence, supports India's energy security (access to Himalayan hydropower), and exercises soft power through infrastructure-led diplomacy.
- Nepal: India-Nepal bilateral hydropower agreements; Upper Karnali, Arun-3 projects; cross-border transmission links operational
- Bhutan: India imports Bhutanese hydropower under long-term agreements; Bhutan earns significant export revenue
- Bangladesh: 1,160 MW cross-border power supply from India (as of 2024); HVDC link at Bheramara-Baharampur
- "One Sun, One World, One Grid" (OSOWOG): India's global proposal for a cross-border solar-based grid, launched at COP26
Connection to this news: Adding Sri Lanka to India's regional power network is a natural extension of the existing neighbourhood energy integration strategy — and a concrete deliverable for India-Sri Lanka bilateral relations post-2022 crisis.
HVDC Technology: Why It Matters for Cross-Border Transmission
High-Voltage Direct Current (HVDC) technology enables long-distance, high-capacity electricity transmission with significantly lower losses than conventional HVAC (alternating current) lines. For undersea cables, HVDC is the only practical technology — HVAC cables over long distances suffer severe capacitive losses in seawater. HVDC converter stations at each end convert between AC (used in national grids) and DC for the transmission segment. India has developed significant HVDC expertise, with PGCIL operating several HVDC lines domestically.
- HVDC efficiency advantage: power losses of 2–3% per 1,000 km vs 4–6% for HVAC
- HVDC is standard for all undersea cables globally — examples: NorNed (Norway-Netherlands, 580 km), BritNed (UK-Netherlands, 260 km), Basslink (Australia, 360 km)
- PGCIL's HVDC experience: ±800 kV HVDC lines in India (e.g., Bishkek-Dehri); among the world's highest voltage HVDC systems
- A 500 MW HVDC link can supply approximately 0.5–1 million households with continuous power
Connection to this news: PGCIL's technical capability in HVDC — including ultra-high voltage designs — means India has both the institutional knowledge and the engineering capacity to build the India-Sri Lanka undersea cable without requiring foreign technology transfer.
Key Facts & Data
- Proposed India-Sri Lanka HVDC link: Madurai (TN) to Anuradhapura (Sri Lanka) via Palk Strait (~65 km)
- Proposed capacity: 500 MW or 1,000 MW
- India's current cross-border electricity exports: Nepal, Bangladesh, Bhutan (Sri Lanka to be added)
- Bangladesh cross-border supply: 1,160 MW (as of 2024) via HVDC link
- India's OSOWOG initiative (One Sun, One World, One Grid): India's global green grid proposal
- Sri Lanka's 2022 energy crisis: fuel shortages caused widespread power cuts; forex collapse disrupted thermal power imports
- HVDC advantages: lower transmission losses, only viable technology for undersea long-distance cables
- First India-Sri Lanka power interconnection study agreement: 2010