HIMALAYAN NEWS SERVICE
KATHMANDU: In a major boost to the 140-km long Muzaffarpur-Dha-lkebar cross border transmission line between Nepal and India, the Nepal Electricity Authority has sent its approval of the financial structure to India and agre-ed to implement soon by appointing board of directors for the company established to construct the project.
The 400 KV transmission line would be completed by the end of 2015 if implemented as per the plan. “We have agreed on the financial structure and authority for the works has been provided to Power Transmission Company (PTCN) Nepal,” said Hariram Koirala, secretary, Ministry of Energy.
The joint meeting of authorities from two countries agreed and signed the Implementation and Transmission Service Agreement (ITSA) and Long-term Power Sale Agreement in December last year. The project is likely to be completed within 42 months.
Both governments have already established companies to look over the project. The Nepal government has entrusted PTCN to constru-ct the 40 km part that lies on Nepal side and the Cross-border Power Transmission Company of India will be responsible for remaining 100 km of the transmission line for the Indian side.
In 2011, both countries had agreed to complete the project by the end of the 2015. “Our decision will help to complete this transmission line on time,” said Koirala. As per the financial structure, the Nepal Electricity Authority would arra-nge 50 per cent funds whe-reas Power Grid India would be responsible for 26 per cent and IL&FC will have 10 per cent investment.
Likewise, the remaining 14 per cent would be given to the financial institutions in Nepal. However, financial institutions here have sho-wn little interest for the project. “We have assured that the 14 per cent allocated for the Nepali financial institution will be taken by NEA, if no interest is shown by our companies. Therefore, there shouldn’t be any problem as far the financial aspect is concerned,” Koirala added.
According to the agreement, Nepal has to invest $20 million of which it has already been agreed that India would provide soft loan of $13.2 million for the construction of the project. The cost for the Indian side for construction of 100 km line would be $32 million.