Purushottam Subedi
Kathmandu: Under the Millennium Challenge Account Nepal (MCA-Nepal), preparations are underway to initiate a 200 kV electricity exchange between Nepal and India starting December 2026 through the under-construction 400 kV cross-border transmission line project.
On the Nepal side, the construction of towers and lines along the 18 km stretch from the New Butwal Substation in Nawalparasi (Bardaghat-Susta West) to the Indian border has been completed. However, the construction of the 400 kV substation will only be completed by December 2027.
On the Indian side, work on the approximately 96 km stretch from the border to Gorakhpur is progressing rapidly, while the infrastructure for the 400 kV substation in Gorakhpur is already prepared.
According to Bishwa Ranjan Mishra, Project Chief of the New Butwal Substation under the Nepal Electricity Authority, the target to complete the full 400 kV substation construction is set for December 2027. Although the overall project is designed for a high capacity of 400 kV, since the 400 kV substation on the Nepal side will only be completed by December 2027, power will initially be transmitted through the ready 200 kV system from the New Butwal Substation in Nawalparasi (Bardaghat-Susta West). Under this arrangement, both countries will supply electricity to each other as needed.
Under the immediate plan, electricity exchange will begin by connecting the line with India via New Butwal’s 200 kV substation by December 2026. Once the 400 kV substation is ready at the end of 2027, electricity will flow at full capacity.
Since the permanent 400 kV substation is still under construction, the ready 200 kV system at New Butwal Substation will be linked to India. Rapid progress is being made on both sides to connect the cross-border line and start electricity exchange by December 2026.
Once the permanent 400 kV infrastructure (including the 400 kV expansion) becomes fully operational by the end of 2027, power will flow through this transmission line at its full 400 kV capacity.
On Nepal’s side, MCA-Nepal Development Committee, under the MCC Nepal Compact, completed the construction of towers and lines for the 18 km cross-border segment connecting the 400 kV New Butwal Substation to the Nepal-India border within the scheduled timeframe.
This transmission line will extend from the New Butwal Substation in Nawalparasi (Bardaghat-Susta West) district to India. This project marks a major milestone in Nepal’s efforts to strengthen its domestic power grid and expand cross-border energy connectivity.
MCA-Nepal completed the construction of the towers and transmission line for this 18 km segment within the stipulated deadline following a request from the Ministry of Energy, Water Resources and Irrigation.
With the completion of the 18 km section on Nepal’s side, MCA-Nepal has fulfilled its scope of tower and line construction under the cross-border transmission line project.
Prior to powering and operationalizing this transmission line, remaining tasks—including necessary procedures and obtaining approvals for Nepal-India cross-border power flow—will be moved forward.
This 18 km segment is part of MCA-Nepal’s broader Electricity Transmission Project. Under this project, tasks involving the construction of a 315 km high-voltage transmission line, three substations, and technical assistance to the Electricity Regulatory Commission and Nepal Electricity Authority are underway.
The project has been designed to improve the availability and reliability of electricity in Nepal, while strengthening the transmission network to support energy security, future power generation, and cross-border electricity trade.
