Government Finalizes Stake in Hetauda-Sheetalpati Transmission Line

The government has finalized the investment share of state-owned companies in the Hetauda–Sheetalpati 400 kV transmission line, a project being developed under a public–private partnership (PPP) model. However, the investment share of private companies has yet to be determined, officials said.

The project is being led by the National Transmission Grid Company (NTGC) with private-sector participation. The 35-kilometre transmission line, located within the Arun Corridor, will evacuate over 2,000 megawatts of electricity from around a dozen hydropower projects currently under development, according to NTGC. Although the private sector has been active in hydropower generation for more than two decades, its participation in building transmission lines has only begun recently.

NTGC estimates the project will cost around Rs 9 billion.

Rajesh Pokharel, secretary at NTGC, said the government-owned companies will collectively invest 51 percent, while private companies will take up the remaining 49 percent.

Among the state-owned entities, NTGC will invest 21 percent, Electricity Generation Company Ltd 10 percent, Hydroelectricity Investment and Development Company Ltd (HIDCL) 10 percent, and Upper Arun Hydroelectric Ltd another 10 percent. “These companies are in the final stage of submitting commitment letters to the government,” Pokharel said.

Four private companies—White Flower Energy Company Pvt Ltd, Apik Energy, Summit Energy Solution Pvt Ltd, and Shangrila Urja Ltd—had applied in February 2024, expressing interest in investing in the project.

“Although private investors will collectively take 49 percent, their exact individual share has not been finalized,” Pokharel said. “Discussions are ongoing to allocate larger shares to companies with higher installed capacity and smaller shares to those with lower capacity.”

NTGC had issued a public notice in December 2023 calling for applications to develop the project under the Build–Operate–Transfer (BOT) model within a public–private investment framework.

The Hetauda–Sheetalpati transmission line is planned as a common transmission infrastructure for hydropower projects situated in the Upper Arun and adjacent river corridors.

A similar PPP-based proposal exists for the Lamabagar–Bahrabise 220 kV transmission line. Two private companies—NASA Company Ltd, promoter of the 160 MW Lapchekhola Hydropower Project, and Sanima Jum Hydropower Ltd, promoter of the Jum Khola Hydropower Project—applied last year. However, no progress has been made on that proposal so far, Pokharel said. Discussions are ongoing on whether only NTGC and these two private companies will invest in that transmission line as well.