MCA-Nepal and Linxon India sign agreement for construction of 400 kV substation

Kathmandu, May 9 (PTI) A Nepalese government agency on Thursday inked an agreement with an Indian company for the construction of the 400 kV New Butwal Substation in Lumbini province, which would improve Nepal’s transmission capacity.

The Millennium Challenge Account-Nepal (MCA-Nepal), the body responsible for managing the infrastructure program, inked the agreement with Linxon India Pvt Ltd for the construction of the New Butwal Substation in Nawalparasi district of the province.

The agency said the signing ceremony took place in Bhumahi, Nawalparasi and was attended by Nepal Electricity Authority Managing Director Kulman Ghising and Dean R Thompson, American envoy to Nepal, among others.

The 400 kV Gas Insulated Switchgear (GIS) cross-border substation will be constructed within the contract period of 39 months, according to Chandan Kumar Ghosh, spokesperson for Nepal Electricity Authority.

Thompson reiterated the US government’s dedication to collaborating with Nepal to meet its energy needs. He underscored the pivotal role of the 400 kV New Butwal Substation in fostering cross-border energy trade and boosting Nepal’s economic growth.

“The 400 kV New Butwal Substation will improve Nepal’s transmission capacity, contributing to reliable and affordable electricity for household consumption, expanded commercial and industrial enterprises and cross-border power trading,” Thompson said.

“The 400 kV substation has been a priority for the NEA and will supplement the existing 220 kV substation to significantly increase cross-border energy trade in the region,” said NEA’s Managing Director Ghising.

The New Butwal Substation is part of the Electricity Transmission Project, funded by the US government’s USD 500 million Millennium Challenge Corporation (MCC) and the Government of Nepal, to improve Nepal’s energy infrastructure.