MCA-Nepal has begun construction of the New Butwal Substation and an 18-kilometre transmission line in Sunwal, Nawalparasi (West), on Wednesday.
The foundation-laying ceremony was attended by Finance Minister Rameshore Prasad Khanal, US Ambassador to Nepal Dean R. Thompson, MCC Resident Country Director Diane Francisco, MCA-Nepal Executive Director Khadga Bahadur Bisht, and local representatives.
According to MCA-Nepal, the new infrastructure—being developed under the MCC Nepal Compact—will strengthen Nepal’s electricity transmission system and support cross-border energy trade between Nepal and India.
Speaking at the event, Finance Minister Khanal said the project reflects the government’s commitment to expanding clean energy access, enhancing regional energy trade, and supporting long-term economic growth.
“With support from MCC and MCA-Nepal, we are converting this agreement into practical action for the nation’s benefit,” he said.
US Ambassador Thompson stated that the United States is proud to partner with Nepal in building a more reliable power system.
“Projects such as transmission lines and substations not only power homes and businesses but also create opportunities for trade, growth, and progress across the region,” he remarked.
MCA-Nepal Executive Director Bisht emphasized that the project marks a new chapter in strengthening Nepal’s energy security. The transmission line and substation, he noted, will create opportunities to expand energy trade and deliver long-term benefits to Nepali citizens.
The 18-km transmission line will connect the 400 kV New Butwal Substation to the Nepal–India border. Built with an investment of around USD 50 million, these structures will also support Nepal’s goal under the 2024 Nepal–India energy trade agreement, which aims to export 10,000 MW of clean hydropower to India within the next decade.
