Cabinet approves $37 million World Bank loan for cross border transmission line

The government today approved a $37-million World Bank (WB) loan for a cross border power transmission and trade project with Southern neighbour.

“Finance minister Shanker Prasad Koirala is going to sign the agreement with the World Bank soon,” informed government spokesperson and Home Minister Madhav Poudel after the cabinet meeting here today evening.

The Nepal-India Electricity Transmission and Trade Project (NIETTP) that aims at establishing cross-border transmission line around about 1,000 MW capacity will facilitate power trade between Nepal and India. The project will also help increase the supply of electricity in Nepal as it can import 100 MW from India for the current need.

India's IL&FS, Energy Development Company, Power Grid Corporation of India and SJVN, India – formerly Satluj Jal Vidyut Nigam Ltd (SJVNL) incorporated on May 24, 1988 as a joint venture between Government of India and Government of Himachal Pradesh – are the shareholders of Cross Border Power Transmission Company Ltd (CPTC).

“Nepal and India will able to trade power through dedicated lines after the completion of the projects,” Poudel said, adding that the country is reeling under scheduled power due to lack of enough transmission lines that has made import and export of power impossible. “Nepal has not been able to import power from India, at present to meet the domestic demand.”

The project aims at at least two transmission corridors between Dhalkebar-Muzaffarpur and Hetuda-Dhalkebar-Duhabi between Nepal and India.

The first corridor will have 90-km of 400-kv double circuit transmission line between Muzaffarpur and Sursand on the Indian border with Nepal and another 40-km of 400-kv double ciruct transmission line between Dhalkebar and Birtamod on the Nepal border with India.

The second component of the project is is Hetuda-Dhalkebar-Duhabi transmission line and grid synchronisation; and installation of properly tuned power stystem stabilisers in major power generating stations in both the countries.

India has – though the EXIM Bank of India – also injected $160 million loan for a 220-KVA Koshi corridor transmission line, 132-KVA Solu corridor transmission line and 32-MW Rahughat hydropower project, under construction to help Nepal export power and also for the domestic consumption.

The manufacturing sector is suffering due to lack of power making the domestic products less compeititve and blocking the economic growth of the country that has a huge potential of the hydropower development.,

Earlier, the World Bank had approved a $99 million loan for a cross border transmission energy cooperation to mitigate the energy crisis.