Nepal and India holds a meeting on transmission line and energy banking projects

Nepal and India holds a meeting on transmission line and energy banking projects

To finalize details linked regarding transmission line and energy banking projects by mutual agreement, the two-day Nepal-India energy secretary-level discussions have occurred in the southern Indian city of Bangalore on Tuesday.

Secretary at the MoEWRI, Dinesh Kumar Ghimire, is managing the Nepali mission, whereas his equivalent Subhash Chandra Garg is directing the Indian team.

According to MoEWRI officials, the gathering will concentrate on concluding the construction modality of the 400 kVA New Butwal-Gorakhpur cross-border overdrive line and on providing the final finishes to the energy banking deal with India.

Prabin Aryal, a joint secretary at MoEWRI, stated that the secretary-level discussions, also called the Joint Steering Committee (JSC) conference, will address the overall program. Before the JSC conference, the joint secretary-level Joint Working Group (JWG) conference was conducted to finalize the agendas for the JSC meeting which will be held on Tuesday.

The New Butwal-Gorakhpur cross-border overdrive line project is a need to fulfill the US government’s Millennium Challenge Corporation aid to Nepal, as per Aryal.

“We hope that the construction modality of the New Butwal-Gorakhpur cross-border transmission line project will be finalized in the meeting,” he said.

“Government authorities from both sides have spent a lot of time preparing the groundwork for the agreement and we hope it will be finalized this time,” he added.

Aryal notified that there has been an understanding to build the transmission line on government modality and the complete project description has also now been settled.

The cross-border transmission chain scheme has been following the forum for a long time and the problem was also raised while the last JSC conference in Pokhara on January 23. Nepal and India had accepted to trade more electricity to Nepal earlier. Likewise, at the Pokhara conference, both the governments had agreed to build the individual portion of the transmission line that comes in their territory.

In an about140-km-long transmission line, 20 km comes in Nepal’s territory and the other 120 km lies in India. Furthermore, Nepal had vowed to spend 50 percent of the equity in the Indian transmission line. At that conference, Nepal had further accepted to spend a cent percent wheeling credit for seven years from the opening of the transmission line operation.

Following seven years of service, Nepal has suggested that both nations must spend according to the quantum of energy applied through this transmission line. But, India had declined to admit that proposal.

Yet, while the two-day Infrastructure Summit on September 11 and 12 conducted in Kathmandu, Indian Minister of State for Power RK Singh had promised to back the usage proposal of the transmission line and its development modality, with others, in a conference with Barsha Man Pun, minister for energy, water resources, and irrigation.

While the last gathering in January, Nepal, and India had addressed starting a joint partnership to complete the project and there were also discussions on India granting an interest-free loan to finance the development works. The conference, though, did not make any transaction.

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