Kathmandu. The Nepal Electricity Authority (NEA) is set to invest a total of Rs 3 billion in two joint venture companies formed for the construction of cross-border transmission lines between Nepal and India.
According to the Ministry of Energy, Water Resources and Irrigation, the investment sources for the joint companies—established by NEA and India’s Power Grid Corporation of India Limited (PGCIL) have been secured.
Ministry Secretary Chiranjivi Chataut said NEA will invest Rs 1 billion in the joint venture company to be established in Nepal and Rs 2 billion in the company to be formed in India. The two countries had earlier reached an agreement at the government-to-government level to establish joint venture firms for the construction of the 400 kV Inaruwa Purnea and Dododhara Bareilly transmission lines.
These transmission lines, considered crucial for electricity exchange between Nepal and India, are expected to be completed by 2030.
In the Nepal-based joint venture company, NEA will hold a 51% share while PGCIL will hold 49%. Similarly, in the India-based company, PGCIL will have a 51% share and NEA will hold the remaining 49%.
NEA’s investment in the Nepal-based joint venture will be made from its internal resources. For investment in the India-based company, the government will provide an exemption under Clause 3(2) of the Foreign Investment Restriction Act, 1964, which restricts Nepali entities from investing abroad. Secretary Chataut said the Council of Ministers has already decided to grant the necessary approval, and the information has been published in the Nepal Gazette.
