Three transmission lines connecting Nepal to India are under construction at the same time. Among the three international transmission lines, the work of the Dhalkebar-Sitamarhi 400 KV capacity international transmission line of the Arun-III hydropower project is currently underway, while the construction of the other two transmission lines has also begun.

The Indian company SJVN Arun-3 Power Development Company, the promoter of the 900 MW Arun III Hydropower Project, is working on the construction of the Dhalkebar-Sitamarhi 400 KV international transmission line.

Through this transmission line, 2,000 megawatts of electricity can be exchanged between the two countries. Nine hundred megawatts of electricity generated from Arun III will be exported from this transmission line.

Despite the swift pace of construction on the 900-megawatt civil and structural components of Arun III through direct foreign investment, the transmission line's progress has been comparatively less enthusiastic.

The 217 kilometers of the 400 KV transmission line is to be built in Nepal. On the Indian side, a 36 km transmission line has to be constructed. Indian company SJVN Arun III Power Development Company is working with a plan to complete the project within 2023.

It is almost certain that the construction will not be completed within the year 2023. According to the Investment Board Nepal, the physical progress of the Arun III hydropower project is 66.3 percent and the physical progress towards the transmission line is 15.46 percent. The promoter company is working to complete the construction at a cost of Rs 144 billion.

Another project, New Butwal-Gorakhpur 400 kV capacity quad model transmission line with 2000 MW capacity transmission line is under construction. The transmission line was targeted to be completed by 2025/26.

A transmission line with a capacity of 315 circuit kilometers is also being constructed under the MCC project. The necessary process of construction of a transmission line to connect Gorakhpur through Ratmate of Nuwakot is also in progress. The necessary process of re-tendering is underway after the tender was awarded at a higher cost than the estimated cost.

Inaruwa-Purnia New 400 KV quad capacity inland transmission line also has the capacity to transmit 2000 megawatts of electricity. This transmission line is currently under proposal. This deadline is set for 2027/28.

Similarly, the Lamki-Dodhara-Bareli 400 KV transmission line is also in the proposed state. This inland transmission line is also scheduled for 2028/29. There is a possibility that 11 international transmission lines can be constructed.

According to the Nepal Electricity Authority (NEA), by the end of 2022/23, the total length of transmission lines of 66 KV to 400 KV capacity will extend to 5572 circuit kilometers. The total capacity of the substations is 8243 MVA.

Likewise, 944 circuit kilometer transmission lines of 400 KV capacity are under construction. In this, the NEA is constructing 3147 circuit kilometers and Grid Company is constructing 290 circuit kilometers. The NEA has constructed and proposed substations with a total of 9720.5 MVA capacity.

Similarly, Grid Company is constructing a substation of 315 MVA capacity. Substations with a total capacity of 10,035 MVA are under construction. Similarly, the NEA has proposed building a substation with a capacity of 8,187.52 MVA, while the grid company has proposed building a substation with a capacity of 1,395 MVA. Both the agencies have proposed constructing substations with a total capacity of 9582.52 MVA.

Independent Power Producers’ Association, Nepal (IPPAN) Deputy Secretary General Prakash Chandra Dulal also says that if 10,000 megawatts of electricity is to be exported in 10 years, power purchase agreements (PPAs) should be opened for hydropower projects.

"Nepal Rastra Bank should also introduce a separate policy to increase investment in the hydropower sector," he said. He added, "If we want to export 10,000 megawatts of electricity to India and 5,000 megawatts to Bangladesh, we need to produce 30,000 megawatts of electricity here. It will cost only Rs 60 billion to build that required capacity."

It is estimated that Rs 8.5 billion will be required for the construction of transmission lines and substations and Rs 4.5 billion for the construction of distribution lines.

According to IPPAN, so far, the private sector has invested about Rs 10 billion for the identification, study and development of energy production projects. Recently, more than 700 megawatts of electricity has been connected to the national grid.

Last year, around 500 megawatts of electricity was produced. The situation of increasing electricity consumption in the country is not satisfactory.