As per a memorandum of understanding signed between NEA and Indian power brokers including the Power Trading Corporation (PTC) and IL&FS, the Power Transmission Company Nepal (PTCN) has to bear 50 per cent of the total cost for the construction of the 45 km line. The total construction cost is Rs 2 billion, which is inclusive of construction of the sub-stations at Dhalkebar.
“The total cost of the project is about Rs 2 billion and the PTCN is a 50 per cent equity partner in the joint venture,” informed Yugal Kishor Sah, the general manager of transmission line section of the NEA.
According to Sah, although India has offered line of credit [loan] to cover for partial fund, the NEA has to generate the rest from the credit market.
“The total cost of the 400 KV Dhalkebar-Muzaffarpur line is estimated at Rs 13 billion. The NEA is not in a position to even fund the fist phase 45-km line on the Nepali side,” an NEA official told Republica on condition of anonymity.
The source added that this is the main reason why the 200 MW offered by PTC is now in limbo. “We cannot import power without the transmission lines, but unfortunately the financing of the project itself is a major problem now.”
The PTC, on the other hand said the issue could be resolved only through high-level decisions. “Nepal should request Indian government’s assistance for the construction of the transmission line, otherwise it is not possible to complete the project soon,” a top PTC official said.
Harish Saran, the vice-president of PTC informed, “India has offered 200 MW additional power to Nepal on a long-term basis but this is contingent upon the construction of the 220 KV transmission line.”
PTC’s Chairman T N Thakur on the other hand told Republica that PTC is awaiting response from NEA for finalization of the offer made to Nepal.
akanshya@myrepublica.com
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