NEA to Invest Rs 3 Billion in Cross-Border Transmission Line Projects

The Nepal Electricity Authority (NEA) will invest a total of Rs 3 billion in two joint venture companies to be established for the construction of cross-border transmission lines between Nepal and India.

The Ministry of Energy, Water Resources and Irrigation, made the announcement after securing the funding source for the joint venture between NEA and India’s Power Grid Corporation of India Limited (PGCIL). Energy Secretary Chiranjivi Chataut said NEA will invest Rs 1 billion in the joint venture to be established in Nepal and Rs 2 billion in the joint venture to be set up in India as equity investment.

Nepal and India have already agreed to establish the joint venture companies for the construction of the Inaruwa–Purnia and Dododhara–Bareilly 400 kV cross-border transmission lines. These transmission lines, considered vital for electricity exchange between the two countries, are expected to be completed by 2030.

The joint venture company to be established in Nepal will have 51 percent NEA ownership and 49 percent PGCIL ownership. Similarly, the joint venture to be set up in India will have 51 percent PGCIL ownership and 49 percent NEA ownership.

NEA’s equity investment in the joint venture in Nepal will come from its internal resources. The government will grant an exemption for NEA’s investment in the Indian joint venture under Sub-section (2) of Section 3 of the Foreign Investment Restrictions Act, 1964 (2021 BS), which restricts investment abroad. Secretary Chataut said the required notification has been published in the Nepal Gazette as per the Cabinet’s decision. -- RSS