27 July, 2011
The much awaited Dhalkebar-Muzaffarpur Cross-Border Transmission Line Project moved a step forward with the initial signing of Implementation and Transmission Service Agreements (ITSA) on July 21, 2011 in New Delhi, India.
Following the inking of ITSA-Nepal and ITSA-India, the road towards financial closure of joint venture companies has been opened. The transmission line that would facilitate power transmission between Nepal and India is expected to complete by March 2014. Nepal Electricity Authority (NEA) and the joint venture companies will formally sign the ITSA on Sept 15, 2011, said NEA acting managing director Rameshwar Yadav upon his return after signing the agreement. “The foundation for the construction of the cross-border transmission line project has been established,” said Ram Chandra Pandey, coordinator of the Cross-Border Transmission Line Project.
Initiated in mid-2006, the cross-border transmission line between Dhalkebar in Nepal and Muzaffarpur in India was expected to finish by 2009. “Due to various technical and financial problems including upgradation and funding for the transmission line joining Duhabi-Hetauda in Nepal, the construction process was halted,” said Pandey. The 140-km cross-border transmission line includes a 100-km 400 kV double circuit transmission line between Dhalkebar and Muzaffarpur.
The total project cost of the Nepali portion of 45 km is Rs 2.263 billion while the Indian portion will cost Rs 2.352 billion. The Indian government has provided Nepal a soft loan of Rs 13.2 million to build the Nepali portion of the transmission line.
According to Pandey, besides the 400 KV circuit joining the transmission line project between Nepal and India, it was also agreed to upgrade the existing 132-KV transmission line linking Duhabi-Hetauda in eastern Nepal to facilitate internal power distribution. “However, due to lack of adequate funds to upgrade the 132-KV circuit joining Duhabi-Hetauda, the overall project was affected,” he added.
The cross-border project finally moved ahead after the World Bank agreed to provide a loan package of US$ 99 million that included upgradation of the Duhabi-Hetauda transmission line.
Meanwhile, a Power Sale Agreement (PSA) between the NEA and PTC to import 150 MW of from India through the Dhalkebar-Muzaffarpur line will be completed in August 2011. The initial signing of the PSA was done on Jan 30, 2011.