August 25, Kathmandu. Nepal and India have signed an funding settlement for the development of the Butwal-Gorakhpur 400 kV second interstate transmission line for energy commerce. A three way partnership and investor settlement has been signed between Nepal Electricity Authority and Government of India-owned Power Grid Corporation of India Limited.
The settlement was signed by NEA Executive Director Kulman Ghising and Power Grid Executive Director YK Dixit at a operate in New Delhi on Wednesday.
The Nepal authorities’s council of ministers met on July 5 to offer approval to the NEA to take a position 50 per cent stake within the firm to be arrange for the development of the Butwal-Gorakhpur interstate transmission line to India.
Executive Director Ghising mentioned that the signing of the settlement paves the way in which for establishing a joint firm with 50/50 per cent founder stake of NEA and Power Grid for the development of the part on the Indian facet of the transmission line.
“Although the meeting of the Secretary and Joint Secretary level mechanisms between the two countries agreed to set up the company with a joint investment of the Block Authority and Power Grid, the joint investment and shareholder agreement could not be reached without the approval of the Cabinet,” Ghisingh he mentioned.
With the approval of the Council of Ministers, together with the signing of the contract, the way in which has been paved for the institution of the corporate by getting ready the administration letter and guidelines and shifting ahead within the course of broadcasting service contract. Ghising mentioned that the work is progressing with the goal of finishing the transmission line in three to three-and-a-half years.
The size of the Butwal-Gorakhpur interstate transmission line is 120 km. Out of this it’s 20 km in direction of Nepal and 100 km in direction of India. The Nepal part’s transmission line will likely be constructed by Nepal itself and the corporate will likely be arrange with 50/50 % share possession of NEA and Power Grid from India.
Prabal Adhikari, director of energy buying and selling division of NEA, mentioned the transmission line may generate round 2,000 MW of electrical energy.
“The Butwal-Gorakhpur transmission line can almost double the capacity of the existing Dhalkebar-Muzaffarpur 400 kV transmission line, which will be the lifeline for power trade between the two countries,” the official mentioned.
The Seventh Meeting of the Nepal-India Energy Secretaries and Joint Secretary Mechanism held on September 27-28, 2076 BS finalized the funding draft for the development of the transmission line. The three way partnership has agreed to take a position 20 per cent within the challenge with an estimated price of Rs 6 billion and borrow the remaining quantity.