Nepal Rastriya Dainik
May 13, 2024 ,
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India rejects Nepal’s proposal to build cross-border electricity transmission line

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An official of the Electricity Authority has said that India does not want to involve Nepal in the construction of two new international transmission lines.

As Nepal has proposed to construct 400 kV Inaruwa (Duhabi-Purnia, Bihar) and 400 kV New Lamki (Dodhara-Bareli, Uttar Pradesh) cross-border lines through joint investment between the two countries, Indian side has proposed to construct the Indian section by India itself and Nepal’s section by Nepal itself. The head of the Broadcasting Directorate of the Electricity Authority, Dirghayu kumar Shrestha said.

In the 11th meeting of the Joint Secretary-level Joint Working Group (JWG) and Joint Secretary-level Steering Committee (JSC), the discussions held by both sides ended without any concrete conclusion. It has been agreed between the two countries to complete the construction of Duhavi-Purnia by 2027-2028 and Dodhara-Bareli power lines by 2028-2029.

Authority officials said that it was not immediately clear why the Indian side did not want to jointly build the project.

400 KV Butwal-Gorakhpur transmission line has been established in collaboration with the Authority and the Indian Power Grid Corporation of India to construct the Indian section.

Prime Minister Pushpa Kamal Dahal and his Indian counterpart Narendra Modi laid the foundation stone of the 400 KV inter-country power line during their visit to Delhi.

The two countries have agreed to build a 120-km power line by March 2025, but authority officials say it will be challenging to complete the task within the deadline. The Nepal section of this line, which is about 20 kilometers long, will be invested by Millennium Challenge Corporation (MCC) Nepal Compact.

Nepal also proposed the same modality for the construction of two other transmission lines.

After the Indian side rejected the proposal, Nepal informed the Indian side that it will not unilaterally book the capacity of this transmission line for 25 years as in the case of Butwal-Gorakhpur transmission line.

Capacity booking forces Nepal to pay the minimum fee even if there is no power flow on the transmission line. “We proposed to the Indian side to pay the wheeling charge based on the power flow only if they do not adopt the Butwal-Gorakhpur power line modality,” said Shrestha.

Nepal had agreed to book capacity on the Butwal-Gorakhpur transmission line as it needed this cross-border line to sell more electricity to its southern neighbour.

“Despite bearing certain financial burden due to capacity booking, in the case of Butwal-Gorakhpur transmission line, the profit of the joint venture will also be shared with the Authority as a partner”, said Shrestha.

40 megawatt electricity trade with Bangladesh from coming monsoon

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Kathmandu – The Nepal government has started the final process of exporting 40 megawatts of electricity to Bangladesh from the coming monsoon.

The Economic Affairs Committee of the Bangladesh Council of Ministers decided to purchase 40 megawatts of electricity from Nepal on last December. According to the said decision, Bangladesh had sent a letter to Nepal to send a proposal for sale by prioritizing the price. After the correspondence from Bangladesh, the official of Nepal Electricity Authority has gone to Bangladesh with the tariff rate.”Bangladesh will send a reply based on our proposal,” Energy, Water Resources and Irrigation Minister Shakti Bahadur Basnet said.

Kulman Ghisingh, Executive Director of Electricity Authority, said that since the business is going to be done with Bangladesh for the first time, the reasonable price has been offered. “We have sent a proposal that is close to the rate we are doing with India,” he said. Ghising says that an engineer from the Electricity Trade Department sent from Nepal will register the sealed file with the price in the Power Development Board of Bangladesh within 4 days. If something has to be arranged, we will arrange it, otherwise there will be an agreement,” he said.

Bangladesh will take Nepal’s electricity using Indian transmission lines. In the Nepal-India secretary level meeting held last February, India has already said that it will send the name of the project and allow it. According to the authority, the power trading with Bangladesh will be done through the Indian power trading company NTPC Vidyut Vyar Nigam. Ghisingh, executive director of the authority, said that the necessary understanding for a tripartite agreement has been reached with NTPC Electricity Trading Corporation, Nepal Electricity Authority and Power Development Board of Bangladesh.

‘After the tripartite agreement, Nepal will export electricity to Bangladesh via India,’ he said, ‘Barring any unforeseen circumstances, Nepal’s electricity will reach Bangladesh from the coming monsoon.’
Electricity will be sold to Bangladesh by paying a ‘billing charge’ to India. The fee paid for using the transmission line is the ‘Billing Charge and the billing charge will be paid by Bangladesh. Recently, a long-term electricity trade agreement has been signed with India to export 10,000 megawatts of electricity in 10 years.

An additional 22 MW of electricity will be exported to India

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The Nepal Electricity Authority has received permission to export 22 MW of electricity to India.

The Nepal Electricity Authority has said that 22 megawatts of electricity produced by Chilime Hydropower Company Limited will be exported to India. According to the authority, 386 megawatts of electricity will be exported to India every day, including Chilime. The Nepal Electricity Authority had already offered to sell an additional 100.9 megawatts of monsoon electricity consumed domestically in the day-ahead market of the Indian Energy Exchange Limited through competition.

The Authority has started selling the excess electricity consumed within the country through competition in the day-ahead market of the Indian Energy Exchange Limited from last 19thJestha 2079 BS. and has also advanced the electricity export process of the hydropower projects built by the private sector.

Income of Rs 1.72 billion in one month from electricity export

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The Nepal Electricity Authority (NEA) has earned Rs 1.72 billion by selling electricity in the Indian market in the last one month(June 2-June 30) .


NEA, which has been allowed to sell 364 MW of electricity in the Indian market, has been selling the surplus electricity in the Indian market through six hydropower projects.NEA Executive Director Kulman Ghising also said that the export of electricity is projected to be around Rs 5 billion in the current fiscal year and Rs 20 billion in the coming year.