KATHMANDU: The government has allocated Rs 85.54 billion for energy production, transmission and distribution infrastructure in the upcoming fiscal year, with a major focus on completing ongoing transmission line and substation projects.
According to the Ministry of Energy, Water Resources and Irrigation, Rs 70 billion of the total allocation has been earmarked specifically for the completion of under-construction transmission lines and substations.
Announcing the budget provisions at a press briefing on Sunday, Finance Minister Swarnim Wagle said the energy sector has been given strategic priority, with policies aimed at attracting private investment from generation to power trading.
The government has set a target to complete at least 10 major transmission lines within the next fiscal year. Among them is the Hetauda–Dhalkebar–Inaruwa 400 kV transmission line, which the government has pledged to complete within the current fiscal year.
Similarly, the New Khimti–Barhabise–Kathmandu transmission line has also been targeted for completion. Despite long delays due to local opposition, forest clearance issues and tree-cutting complications, efforts have been made recently to resolve these bottlenecks.
Energy Minister Biraj Bhakta Shrestha has recently taken initiatives to address such implementation challenges, particularly in projects facing land acquisition and environmental hurdles.
Other projects listed for completion include the Lalbandi–Nawalpur–Salimpur 132 kV, Kushaha–Biratnagar 132 kV, and Nepalgunj–Nanpara 132 kV transmission lines. The government has also prioritized the Kusma–Tallo Modi–New Modi and Kaligandaki–Ridi 132 kV lines for completion within a year.
The Kohalpur–Dailekh–Surkhet 132 kV transmission line has already been completed, while several others including Tumlingtar–Sheetalpati 220 kV, Dhalkebar–Balaganga 132 kV, Bhumei–Hakuai 132 kV, and Nepal–India cross-border transmission lines are also targeted for completion within the same timeframe.
The government has also prioritized the Hetauda–Ratomate–Lapsiphedi–New Damauli–New Butwal 400 kV transmission corridor to strengthen the national grid.
For expanding cross-border electricity trade, priority has been given to projects such as Butwal–Gorakhpur and Inaruwa–Purnia transmission lines. Feasibility studies and project preparation will be advanced for additional lines including Dhalkebar–Muzaffarpur–Sitamarhi, Lamki–Dodhara–Bareilly, Lamahi–Lucknow, Nijgadh–Motihari, and the Chilime hub–Kerung corridor.
The government has also announced plans to accelerate the Karnali Corridor national transmission line and expand electrification in remote areas of Karnali Province that are not yet connected to the national grid.
The budget further emphasizes preventing electricity wastage from hydropower projects and balancing supply and demand through the completion of strategically important transmission infrastructure.
Policies promoting clean energy-based industries, electric vehicle production, charging station expansion, and battery management systems have also been included in the budget.
Independent Power Producers’ Association Nepal (IPPAN) Vice President Uttam Bhulon Lama welcomed the budget announcements, describing them as positive and investment-friendly for the energy sector.
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