Kathmandu, Nov 21:  The Nepal Electricity Authority is set to invest a total of Rs 3 billion in joint venture companies that will build two cross-border transmission lines.

The Ministry of Energy, Water Resources and Irrigation said the investment source for the joint ventures with India’s Power Grid Corporation of India Limited has been secured. According to Secretary Chiranjibi Chataut, the Authority will invest Rs 1 billion in the joint venture to be established in Nepal, and Rs 2 billion in the joint venture to be set up in India.

Nepal and India had already agreed at the senior government level to form joint venture companies to construct the 400 kV Inaruwa Purnia and Dododhara Bareilly cross-border transmission lines. These lines, considered important for electricity exchange between the two countries, are expected to be completed by 2030.

In the joint venture to be established in Nepal, the Authority will hold 51 percent of the shares and Power Grid Corporation of India Limited will hold 49 percent. In the company to be set up in India, the Indian company will have 51 percent and the Authority will have 49 percent.

The Authority’s investment in the joint venture in Nepal will be funded from its internal resources. Under sub clause 2 of clause 3 of the Foreign Investment Restriction Act 2021, a waiver will be granted for the Authority’s investment in the joint venture to be set up in India. Secretary Chataut said the Cabinet has issued the required notice through the Nepal Gazette as per the decision.]

People’s News Monitoring Service