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Nepal-India sign deal to construct power transmission line

Jan 6, 2007 Asia Pulse Data Source

Kathmandu, Nepal and India have agreed to construct a 220 KV trans-border transmission line to facilitate exchange of power between the two countries.

An agreement to this effect was signed yesterday between the Nepal Electricity Authority and the Indian infrastructure Leasing and Financial Services, to construct transmission for power exchange between the two countries, according to the National News Agency (RSS).

Arjun Kumar Karki, Executive Director, NEA and D K Mittal, Managing Director of the Indian company signed the agreement on behalf of their respective organizations.

It was agreed to establish a joint company of NEA and the Indian company to construct the necessary transmission lines so as to facilitate power exchange between the two countries.

NEA will have a 50 per cent investment in the company to be established in Nepal, the Indian company will have 26 per cent while the remaining investment will be from national and international financial institutions.

As per the agreement, a transmission line of 220 KV would be constructed in the Indo-Nepal border region in Butawal-Gorakhpur, Duhabi-Purnima, Dhalkebar-Mujaffarpur and Anarmani-Siligudi.

Nepal is currently having a loadshading due to power shortage and after the completion of the project Nepal will get required power supply from the Indian grid through the new transmission line.

Similarly, it would also be helpful in exporting the country's excessive power to India during peak season and also to attract foreign investment in the power sectors.

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