Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal has taken a significant step toward strengthening its national grid and unlocking cross-border electricity trade with the signing of a landmark agreement among five major institutions to jointly develop the West Seti Power Corridor. The agreement focuses on the construction of a 400 kV high-capacity transmission line and the development of three large-scale hydropower projects in western Nepal.
The five signatory institutions—Hydroelectricity Investment and Development Company Limited (HIDCL), National Power Grid Company Limited (RPGCL), Chainpur Seti Hydropower Company Limited (CJCL), Chilime Seti Hydropower Company Limited (CSHC), and Samriddhi Energy Limited (SEL)—signed a Memorandum of Understanding to cooperate on the development, financing, and operation of the Bajhang–Nilegada–Dodhara 400 kV transmission line and its associated power plants.
The transmission line is strategically designed to evacuate electricity from three major hydropower projects in the region—Chainpur Seti (210 MW), Seti River-3 (87 MW), and Upper Seti (Bajhang) (216 MW)—and connect them to the national grid. These projects are expected to collectively generate over 500 megawatts of power, helping to reduce energy spillage during the wet season and facilitating reliable energy exports to India.
Under the agreement, HIDCL will take the lead in arranging financial structuring and investment, while RPGCL will be responsible for transmission line development, including design, land acquisition, and operation, through the establishment of a dedicated Special Purpose Vehicle (SPV).
Most of the planned projects have already received key regulatory approvals including construction permits, Environmental Impact Assessments (EIA), Power Purchase Agreements (PPA), and grid connection clearances. Land acquisition and technical studies for the transmission line are also well underway.
At the signing ceremony, executives from all five entities—Prajesh Bikram Thapa (CEO, HIDCL), Sagar Shrestha (CEO, RPGCL), Anil Bhakta Shrestha (CEO, CJCL), Narayan Prasad Acharya (CEO, CSHC), and Shailendra Guragain (hydropower developer, SEL)—formalized the collaboration, committing to fast-track implementation.
Government officials emphasized that the West Seti Corridor will enhance the strength and reach of Nepal’s transmission network, which has long suffered from inadequate capacity in the western region. The new line will enable smooth evacuation of power and open up long-term electricity trade with India under the existing regional power-sharing agreements.
The infrastructure push in the West Seti region is seen as a model for future energy corridors across Nepal. It is expected to create a more reliable platform for both public and private power producers to access domestic markets and export channels, marking a crucial advancement in Nepal’s ambition to become a regional electricity exporter.
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