Nepal has taken a significant step in enhancing its energy cooperation with India by signing a $12.36 million contract for an 18 km cross-border electricity transmission line under the broader Electricity Transmission Project of the Millennium Challenge Corporation (MCC) Nepal Compact. The contract was awarded to Transrail Lighting Ltd. The transmission line will connect the 400 kV New Butwal Substation in Nawalparasi Bardaghat Susta West to the Nepal-India border and includes the construction of three substations. 

The project is jointly funded by the Governments of Nepal and the United States through the MCC. It marks a crucial milestone in Nepal's efforts to strengthen its domestic power infrastructure and position in the regional energy market and comes as the Millennium Challenge Account (MCA)-Nepal recently marked the first anniversary of the MCC Nepal Compact’s Entry-Into-Force.  

Along with previously signed substation contracts worth $126 million, this new transmission line is expected to play a vital role in helping Nepal achieve its domestic power goals and reinforce its position in the regional energy market, according to Dr. Ram Prasad Ghimire, Secretary of the Ministry of Finance of the Government of Nepal. 

Related link 

MCA-Nepal signs contract for cross-border power transmission line to India