A meeting of the MCA-Nepal Board on Wednesday decided to advance the 18km Nepal portion of the Butwal-Gorakhpur power transmission line on a priority basis by separating it from the larger 315 km transmission line.

The board determined that expediting the cross-border section will help meet the obligations of the cross-border power trade agreement between Nepal and India, MCA-Nepal said in a statement.

“MCA-Nepal Board made this determination collectively owing to the critical importance of this segment to the government and the Nepal Electricity Authority,” said Nabin Raj Singh, joint secretary and spokesperson for the Ministry of Energy, Water Resources and Irrigation after the meeting.

“The separation of the 18 km segment from the larger transmission line network will enable a quicker procurement process and its implementation to ensure that the line is completed on time by May 2026 to connect with the lines under construction on the Indian side of the border.”

According to MCA-Nepal, the cross-border transmission line is a critical component of the electricity transmission project and will facilitate cross-border electricity trade to meet Nepal’s needs.

In October 2019, Kathmandu and New Delhi agreed to the financing and ownership framework that will govern the implementation of the New Butwal-Gorakhpur cross-border transmission line.

The proposed Butwal-Gorakhpur Transmission Line will have the capacity for transporting power as much as 3,500MW, more capacious than the 400 kV Dhalkebar-Muzaffarpur Cross-border Transmission Line that can carry up to 1,000MW.

The MCC, the American aid programme under which Nepal is to receive $500 million for electricity transmission and road infrastructure projects, had made the signing of an agreement between Nepal and India on building a cross-border transmission line a prerequisite for the implementation of the compact agreement.

For the remaining 297 km transmission line, MCA-Nepal continues to work to procure the services of design-build contractors to complete the project within the agreed timeline, said MCA-Nepal.

MCA-Nepal said it remains committed to ensuring the transmission lines are built on time, within budget, and in accordance with government and MCC’s environmental and social standards.