KATHMANDU, Oct 24: Nepal and India have decided to hold a stakeholders´ meeting on November 7 for the construction of the 400 kv direct current Dhalkebar-Muzaffarpur cross-border transmission line after the World Bank (WB) proposed a loan assistance for the project.
"World Bank has already held talks with the Indian government on its interest to support the construction of the line. The two governments will now hold talks together with the Bank," Minister for Energy, Dr Prakash Saran Mahat, told Republica.
The WB had proposed the loan to Nepal government under its regional package.
Stating that India´s willingness is crucial to accept the WB aid for the project, Minister Mahat added, "We are glad that the Indian government has shown its willingness to talk."
India was earlier skeptical as it is against its policy to accept a direct state loan from an international monetary agency and also due to the presence of two separate private companies formed in the two countries for the project.
Mahat also said that since the private sector is "not ready with the required investment" for the project, the government has been "positive" about the WB assistance.
"Since there is little possibility to give return guarantee to the private sector for investing in the project, it is best that the public sector takes the project forward," Mahat said.
The CPTC (Cross Border Power Transmission Company) for the Indian side was set up in December 2006 and PTCN (Power Transmission Company Nepal) for Nepali side was set-up in September 2007 (A 50:50 joint-venture of Nepal Electricity Authority and IL&FS, the Indian infrastructure developing company, with a provision to divest 24% of IL&FS equity to foreign investments and banks of Nepal).
Nepal government has already expressed its willingness to take the loan for the construction of the 45-km line on the Nepal side from the multilateral institution earlier this month. The decision was taken at a meeting with the WB delegates at the Ministry of Energy.
The scheduled meeting will be held in Kathmandu and will be attended by high-level government officials of both sides. The Power Trading Corporation of India and National Grid Authority of India too will attend it.
The WB some four months back had agreed to only provide technical assistance to support the synchronous operation of the project and also agreed to pay for the technicians hired for the purpose.
The total length of the project is 145 km with 45 km in Nepal and another 100 km in India, which would have a capacity to carry about 1400-1500 MW power.
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