KATHMANDU: The Nepal Electricity Authority (NEA) will invest a total of Rs 3 billion in joint venture companies to be established for the construction of two Nepal–India cross-border electricity transmission lines.
According to the Ministry of Energy, Water Resources and Irrigation, the investment structure for the joint venture between the NEA and India’s Power Grid Corporation of India Limited has been finalized.
Ministry Secretary Chiranjibi Chataut said the NEA will invest Rs 1 billion in the joint venture to be set up in Nepal and Rs 2 billion in the corresponding company to be established in India.
Officials from both countries have already agreed to form joint venture companies for the construction of the 400 kV Inaruwa–Purniya and Dododhara–Bareilly cross-border transmission lines. These projects, considered vital for expanding electricity trade between Nepal and India, are targeted for completion by 2030.
The joint venture company to be established in Nepal will have a share structure of 51 percent for the NEA and 49 percent for India’s Power Grid Corporation. Likewise, the company to be formed in India will allocate 51 percent shares to Power Grid and 49 percent to the NEA.
The NEA will finance its investment in the Nepal-based venture through internal resources. Meanwhile, under Sub-section (2) of Section 3 of the Foreign Investment Prohibition Act, 2021, Nepal has granted an exemption allowing NEA’s investment in the Indian joint venture.
Secretary Chataut said the required notice has already been published in the Gazette following approval from the Council of Ministers.
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