Nepal, India Agree on Investment Modality of Cross-Border Transmission Line

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Nepal, India Agree on Investment Modality of Cross-Border Transmission Line

October 16: Nepal and India have agreed to invest 50 percent each for the construction of the 400 KV New Butwal-New Gorakhpur Cross-border Transmission Line. The two countries reached the agreement during a secretary-level meeting in Bangalore on Tuesday, October 15. This will be the second cross-border transmission line between Nepal and India.

Nepal had proposed the investment model nine months ago. But India had not agreed to it. India finally agreed to the proposal after numerous talks between the two countries.

Tuesday’s meeting in Bangalore also agreed to set up two more transmission lines – Inaruwa-Purniya and Lamki-Barailey transmission lines. The investment models of these two transmission lines will be decided in the upcoming meeting between the two countries.

However, the meeting could not reach an agreement on who will bear the wheeling charge of the transmission line, informed Kulman Ghising, CEO of Nepal Electricity Authority who had attended the meeting.

Nepal had proposed to pay the full wheeling charge for the first seven years after the transmission line comes into operation.  But the agreement on investment model has finally paved the way for the project to move ahead.

“The construction of the transmission line was halted due to the failure in finalizing the investment modality,” said Ghising, “Finally a decision has been taken.”

Ghising said that the construction will go ahead for the time being as the two countries decide which country will take charge of the transmission line.


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