A contract for the first section (New Khimiti-Bahrabise) under the Tamakoshi-Kathmandu 400 KV transmission line has been cancelled, citing the violation of the terms and conditions.

The Nepal Electricity Authority (NEA) took the move for not meeting the conditions and failing to start works on time by the contractors. A Chinese contractor company Guangxi Transmission and Substation Construction Company and the Shenzhen Clou Electronics Co Ltd were jointly awarded the contract for the construction of the New Khimti-Barhabise section.

The contract was terminated few days ago, seizing the 10 percent of the works executions securities, project chief Nawaraj Ojha said.

The NEA had signed the contract with the two companies on September 27, 2016 and it was expected to be complete by the fourth week of upcoming May. The contract was awarded at the cost of 14,543,000 US dollar and Rs 616,736,000.

With the confiscation of securities, the NEA has received Rs 145 million and Rs 60 million. According to the NEA, despite the completion of the 74 percent of contract time, the companies failed to begin the works of initial phase.