The Government of Germany has agreed to provide Nepal with an additional development grant of EUR 15 million (approximately Rs 1 billion 815 million). The grant will go towards building 43 Kilometres Damauli-Lekhnath hydro electricity transmission line, the Embassy of Germany to Nepal said in a statement on Tuesday. 

In November 2016 the German Government had committed EUR 16 million for a transmission line project under its financial cooperation programme “Promotion of Energy Efficiency and Renewable Energy in Nepal”. The new commitment of EUR 15 Million is in addition to the existing development cooperation. 

Now, the total commitment of EUR 31 million shall be made available to Government of Nepal to support construction of the Lekhnath-Damauli 220 KV double circuit transmission line. This transmission line is a priority component for strengthening Nepal’s national grid. This will efficiently transfer to the Nepalese households a significant generation of hydro-energy produced from Seti-Madi River basin. Financial arrangement of this cooperation will be made through German Development Bank-KfW. 

The Project foresees the construction of power transmission facilities to transfer climate-friendly electricity generated by hydro-power plants. Alongside the construction of the transmission line, two different energy-substations in Lekhnath and Damauli will also be set up with this financial cooperation, it is stated.