The first section of the Koshi Corridor transmission line has been completed, allowing 550 megawatts of electricity to flow from hydropower plants in the eastern region into the national grid.

The 220 kV double circuit power line linking Inaruwa-Basantapur-Baneshwar-Tumlingtar was handed over to the Nepal Electricity Authority on Wednesday amid a ceremony in Hile, Dhankuta.

The state-owned power utility began construction work on the substation in June 2016 with a completion deadline of February 2020.

The Koshi Corridor transmission line, 106 km long and costing Rs10.40 billion ($86.8 million), is being built under an Indian government Line of Credit worth $550 million, extended by the EXIM Bank of India.

Package 1 of the national pride project worth Rs4.5 billion ($37.3 million) was executed by India’s Kalpataru Power Transmission and handed over to the Nepal Electricity Authority after successful completion and charging of the line, the Indian Embassy in Kathmandu said in a press statement.

“Once the remaining two packages are completed, the project will ensure smooth power evacuation from the generation projects coming up in the Arun and Tamor river basins, with power output totalling about 2,000 megawatts,” it said.

Kalpataru Power Transmission and EXIM Bank of India handed over the project to the Nepal Electricity Authority in the presence of Namgya Khampa, deputy chief of mission at the Embassy of India in Nepal.

The second and third packages of the project are expected to be delayed. Under the second package, 220 kV substations are being constructed in Inaruwa, Basantapur, Baneshwar and Tumlingtar.

The physical progress of the project has reached 80 percent, according to the project. The estimated cost of the second package is Rs2.91 billion.

The third package consists of the construction of the 35-km Basantapur-Dhungesanghu (Taplejung) transmission line. The project cost is Rs2.50 billion. So far, 70 percent of the construction of the third package has been completed.

Deputy Chief Of Mission Namgya Khampa underscored India’s commitment to strengthening bilateral cooperation in the power sector in all its dimensions, including the development of power projects in Nepal, support for the construction of transmission lines (both within Nepal and cross-border) and trade of electricity with India.

In addition to the Koshi Corridor, India is supporting the construction of two other power lines in Nepal—the Modi-Lekhnath line and the Solu Corridor line, both 132 kV. In addition, it continues to support the construction of several cross-border transmission links between India and Nepal, between national as well as state grids.

This is a key element of India’s emphasis on enhancing cross-border economic connectivity as part of our larger “neighbourhood first” policy, the statement said.