The government has confirmed that the Nepal Electricity Authority (NEA) will gain direct benefits from the new cross-border transmission lines being developed between Nepal and India.
Nepal and India have already signed an agreement to jointly construct two additional 400 kV transmission lines — the Inaruwa–Purnia line and the Dododhara–Bareilly line.
To implement these projects, a joint venture company will be formed between the Nepal Electricity Authority and India’s Power Grid Corporation. According to Sandeep Kumar Dev, Joint Secretary at the Ministry of Energy, Water Resources and Irrigation, NEA will hold a 51 percent stake in the portion of the transmission line constructed within Nepal.
Similarly, NEA will hold a 49 percent share in the section built on the Indian side.
The ministry stated that prioritizing the construction of cross-border transmission infrastructure is essential to ensure a reliable market for electricity generated by hydropower projects that already have power purchase agreements in place.
