West Seti 400 kV transmission line to be developed under PPP model, Special purpose company formed

KATHMANDU: Nepal has taken a major step toward strengthening its electricity transmission infrastructure with the establishment of a special purpose vehicle (SPV), West Seti Transmission Limited, to develop the West Seti 400 kV Transmission Line Project under a Public-Private Partnership (PPP) model.

The project, estimated to cost approximately Rs 20 billion, aims to connect large hydropower projects being developed in western Nepal to the national transmission network. The investment structure has been approved by the Board of Directors of the National Transmission Grid Company Limited (RPGCL), paving the way for the completion of the company’s registration process and the formal launch of the project.

Strategic Transmission Infrastructure for Western Nepal

Addressing the founding partners of the newly established company on Monday, Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha said the private sector’s contribution to Nepal’s energy sector is now expanding beyond power generation into transmission infrastructure development.

Describing transmission lines as the “lifeline” of the power sector, the minister expressed confidence that the partnership would mark the beginning of a new era in Nepal’s energy development.

“Participatory development is also an exercise in democracy. Cooperation with the private sector in transmission infrastructure is a new practice for Nepal, and the government will continue to encourage such partnerships,” Shrestha said.

The minister also noted that the government is currently reviewing electricity Power Purchase Agreement (PPA) policies and would make necessary decisions based on the findings of the ongoing review process.

According to him, reliable and sustainable energy infrastructure is essential for accelerating economic growth and unlocking the development potential of Sudurpashchim Province and western Nepal.

Government Pledges Full Support

Minister Shrestha assured investors that the government would provide all necessary support for the successful implementation of the project.

“The private sector has taken significant investment risks. The government will not step back from its responsibilities in ensuring the project’s success,” he said.

Construction to Begin After Land and Forest Clearances

Sagar Shrestha, Chief Executive Officer of RPGCL, said construction activities would be accelerated once land acquisition, right-of-way approvals, and forest clearances are completed.

Preparatory work for these processes has already begun, he added.

Meanwhile, Shailendra Guragain, Chairman of Samriddhi Energy Limited, described the project as a potential “game changer” for Nepal’s energy sector and said private investors are attracted by its long-term strategic importance.

Acting Managing Director of the Nepal Electricity Authority (NEA), Dirghayu Kumar Shrestha, also highlighted the strategic significance of the project for Nepal’s future electricity system.

Ownership Structure

Under the approved shareholding structure, the government side will hold a 51 percent stake in West Seti Transmission Limited.

The public-sector ownership includes:

• National Transmission Grid Company Limited (RPGCL): 26%
• Chilime Hydropower Company Limited: 12.5%
• Chainpur Seti Hydropower Company Limited: 12.5%

Private-sector investors will collectively own 39 percent, including:

• Samriddhi Energy Limited: 25.1%
• Ngadi Group Power Limited: 7%
• Syuri Ngadi Power Limited: 6.9%

The remaining 10 percent of shares will be offered to the general public.

145-Kilometer High-Voltage Transmission Corridor

The project involves the construction of a 145-kilometer, 400 kV double-circuit transmission line stretching from the Chainpur Substation in Jayaprithvi Municipality-1, Bajhang, through Banlek in Doti, to the Dodhodhara Substation in Bardagoriya Rural Municipality-2, Kailali.

The project also includes the construction of:

• A 160 MVA substation at Chainpur
• A 315 MVA substation at Banlek

Land acquisition requirements and preliminary surveys have already been completed, while the overall construction period has been set at five years.

Supporting More Than 2,500 MW of Future Hydropower

The transmission line is expected to play a critical role in evacuating electricity from several major hydropower projects planned in the Seti River Basin.

These include:

• 750 MW West Seti Hydropower Project
• 450 MW Seti River-6 Hydropower Project
• 170 MW Upper Seti Hydropower Project

In addition, electricity generated from various projects under development along the Seti River and its tributaries will be connected to the national grid through the transmission corridor.

The transmission system is designed to support power evacuation capacity of up to 2,500 MW, significantly strengthening Nepal’s transmission network and facilitating future energy exports.

Boosting Energy Security and Cross-Border Trade

Energy experts believe the project will enhance the reliability of Nepal’s national power system while supporting cross-border electricity trade with neighboring countries.

The transmission corridor is also expected to strengthen Nepal’s long-term energy security strategy and support the country’s ambition of becoming a regional clean energy exporter.

As one of Nepal’s most significant transmission infrastructure projects to be developed under a Public-Private Partnership model, the West Seti 400 kV Transmission Line is widely viewed as a landmark initiative in the modernization of the country’s power sector.

West Seti Transmission Limited was officially registered on May 27, 2026 (Jestha 13, 2083 BS), and construction is expected to proceed following the completion of required regulatory approvals.

Keywords: Nepal energy sector, West Seti Transmission Line, 400 kV transmission line Nepal, hydropower Nepal, power transmission infrastructure, Nepal electricity exports, Sudurpashchim development, National Transmission Grid Company, PPP project Nepal, West Seti Hydropower, Nepal power sector investment, energy security Nepal.