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Nepal, India Sign Deal to Build 400 kV Power Transmission Line

The transmission line in the side of Nepal will be constructed by the company which will be set up through a 50-50 share ownership of NEA and Power Grid.

September 14, 2021

Power Transmission Line

Nepal Electricity Authority and Power Grid Corporation of India have signed an agreement to develop a transnational transmission line – the Indian portion of the 400 kV Butwal-Gorakhpur line. This expansion of the power line will be made through joint investment.

According to the Nepal Electricity Authority (NEA), an investment agreement was signed to build the Butwal-Gorakhpur second cross-border power line.

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An energy secretary-level meeting of Nepal and India some three years ago had agreed to construct the transmission line with a total capacity of 400 kV. According to the agreement, it has been made clear that the said power line will be built based on the joint venture of NEA and Power Grid Corporation of India.

NEA Executive Director Kulmanghising confirmed the bilateral investment agreement with respect to the Butwal-Gorakhpur 400 kV transmission line. Besides, the transmission line is related to the US aid project Millennium Challenge Corporation (MCC).

The executive director affirmed that the agreement has opened the way for establishing a company with a 50-50 percent share of NEA and Power Grid of India for developing the transmission line. The Butwal-Gorakhpur transnational transmission line is 120 kilometres long. In this, 20 kilometres lies towards Nepal and 100 kilometres is towards India.

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Within this agreement, the transmission line in the side of Nepal will be constructed by Nepal itself whereas the other portion in India will be built by the company which will be set up through a 50-50 share ownership of NEA and Power Grid. The transmission line can transmit about 2000 MWs of electricity. According to the Executive Director, the Butwal-Gorakhpur transmission line will possess the ability to transmit almost double power than the current first inter-country 400 kV Nepal, India agree to develop a second transnational transmission line with a capacity of 20,000 MW Dhalkebar-Mujaffarpur transmission line can transport.