Kathmandu. Nepal and India have reached an agreement on the construction of high-capacity transmission lines for cross-border electricity trade. The agreement comes in the context of the government’s publicized ambition to generate 28,500 megawatts of electricity by 2035.
The latest agreement is believed to have significant significance in providing further facilitation in electricity trade through the expansion of the transmission network. According to Sandeep Kumar Dev, Joint Secretary and Spokesperson of the Ministry of Energy, Water Resources and Irrigation, an important agreement has been reached regarding the capacity increase of two new and one currently operating transmission line to be constructed by 2034-35.
The meeting of the Joint Steering Committee at the level of Energy Secretaries of Nepal and India has agreed to the construction of a 400 kV transmission line between Nijgadh/Harnaiya-Motihari. Similarly, a 400 kV transmission line will also be constructed between Kohalpur-Lucknow. The currently operating 400 kV transmission line between Dhalkebar-Muzaffarpur will be replaced with a high-capacity conductor. Currently, 800 MW of electricity is being imported and exported through this transmission line. The last meeting also agreed to import and export electricity up to 1,000 megawatts through the transmission line.
The two countries have already agreed to construct the Inaruwa-Purnia and Dododhara-Bareilly transmission lines. The capacity of both transmission lines will be 400 kV. Similarly, the construction of the New Butwal-Gorakhpur 400 kV transmission line is currently underway. Since it is not enough to just generate electricity and a high-capacity transmission line is required to supply it to the regional market, the two countries have taken it forward with priority.
In the context of the agreement to export 10,000 megawatts of electricity to India during the visit of the then Prime Minister Pushpa Kamal Dahal ‘Prachanda’, the construction of a high-capacity transmission line had become necessary and urgent. Nepal Electricity Authority has been exporting electricity to India during the rainy season.
Although in a ‘token’ form, electricity exports have also started to Bangladesh. The aim is to further expand this. The Ministry of Energy has stated that an important agreement was reached in this regard in the 12th meeting of the Energy Secretary-level Joint Steering Committee. According to Ministry Spokesperson Dev, it has been agreed to further facilitate the process of granting approval or consent for additional electricity exports.
Currently, electricity is being exchanged between the two countries through transmission lines of various capacities. According to the long-term plan put forward by the government, 15,000 MW of electricity out of a total of 28,500 MW will be exported. Of this, 10,000 MW will be exported to India and 5,000 MW to Bangladesh. Similarly, 13,000 MW of electricity will be used for domestic consumption.
The recent agreement on the construction of high-capacity transmission lines will help the government achieve its long-term goals. Similarly, the promoter of the Arun III Hydropower Project, Sutlej Vidyut Nigam, is also constructing a 400 kV transmission line. That too can be used in electricity trade.
A ‘construction joint venture’ will be decided for the construction of the proposed Inaruwa-Purnia and Dododhara-Bareilly 400 kV transmission lines. It will take the necessary initiatives to complete the construction by 2028-29 and 2029-30 respectively. The transmission line on the Nepal side will be constructed through a joint venture by the Nepal Electricity Authority and the Power Grid on the Indian side. The NEA will have 51 percent equity and the Power Grid will have 49 percent equity. The Ministry of Energy has stated that it has been agreed to start the work related to the establishment of the joint venture company within a month.
Similarly, a Chameliya-Jalijvi 220 kV transmission line will be constructed for easy electricity import and export in the Far West Province. A detailed project report will be prepared for that by mid-Chait. The transmission line will be double circuit. The transmission line on the Nepal side will be constructed by the NEA and the one on the Indian side by the Power Grid. The target is to complete the construction of the transmission line by December 2027.
In the context of the Indian company Grand Mallikarjuna Rao (GMR) having made final preparations for the financial management for the construction of the Upper Karnali Hydropower Project, a high-capacity transmission line will also be constructed in the Karnali Corridor. It is believed that this will also pave the way for another route in electricity trade between the two countries.
In the first four months of the current fiscal year alone, the NEA had exported 1.66 billion 7.892 million units of electricity to India. It was able to earn an income of 12.71 billion 9.459 billion from it. The NEA exported electricity to India at an average of Rs 7.63 per unit.
In the context of the private sector demanding permission for electricity export, the agreement reached between Nepal and India on the construction of additional high-capacity transmission lines will pave the way. The government is preparing to grant permission to the private sector for electricity export after passing the electricity bill currently under consideration in the parliament. The government and the private sector are taking meaningful initiatives in the energy sector with the aim of increasing production and expanding trade.
The 12th meeting of the Joint Steering Committee on Energy Secretary-level between Nepal and India was held in the capital of India, New Delhi, on Magh 29. The meeting was co-chaired by Suresh Acharya, Secretary, Ministry of Energy, Water Resources and Irrigation, on behalf of Nepal, and Pankaj Agrawal, Secretary, Ministry of Power, on behalf of the Government of India.
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