Central Electricity Regulatory Commission (CERC) has granted licence to the Indian portion of an Indo-Nepal transmission line, owned by Butwal-Gorakhpur Cross Border Power Transmission Ltd (BGCPTL).
In a recent order, CERC granted licence to BGCPTL for its transmission project officially termed as “Indian portion of New Butwal Gorakhpur 400kV double-circuit cross-border interconnection line and associated bay extension work.”
BGCPTL is an equal (50:50) joint venture between Power Grid Corporation of India Ltd (PGCIL) and Nepal Electricity Authority (NEA).
BGCPTL is developing the Indian portion, of about 94 km, of the 400kV double-circuit (quad moose) transmission line from NEA’s New Butwal substation to PGCIL’s Gorakhpur substation in Uttar Pradesh. The project also involves addition of two 400kV line bays to PGCIL’s 400/220kV Gorakhpur substation.
The project has been awarded to BGCPTL under the regulated tariff mechanism (RTM) mode.
As per the implementation and transmission service agreement (ITSA), the project, estimated to cost Rs.462 crore, is scheduled to commission by May 30, 2026. Empowered with the CERC licence, BGCPTL can claim monthly transmission service charges from NEA, from the scheduled commissioning date.
The ITSA between BGCPTL and NEA was formalized on June 1, 2023, with estimated project gestation period of 36 months.
In its previous order dated March 30, 2023, on the subject matter, CERC had ordered BGCPTL to issue a public notice inviting comments and suggestions to the proposed grant of transmission licence. CERC had indicated that such public comments should be placed before the commission by April 17, 2024. The public notice, issued on April 5, 2024, did not attract any comments, culminating in the issuance of transmission licence to BGCPTL. The project will be exclusively used to export electricity from India to Nepal. As such, the entire transmission charges will be borne by Nepal Electricity Authority.
Project background
The entire Indo-Nepal line will be a 400kV double-circuit (quad moose) cross border line running 112 km, from Butwal (in Nepal) to Gorakhpur (in Uttar Pradesh, India). The overall project envisages bay extension works at the Gorakhpur and New Butwal substations in India and Nepal, respectively.
Of this, BGCPTL will implement the Indian portion which will be around 94km of transmission line from Gorakhpur to the Indo-Nepal connection point, and bay extension work of the Gorakhpur substation. The Nepal portion of the line will be implemented by Nepal Electricity Authority.
The upcoming Butwal-Gorakhpur line will augment electricity transfer from India and Nepal, which is currently taking place largely through the 400kV Muzaffarpur-Dhalkhebar cross-border line – the highest-capacity line so far for Indo-Nepal electricity trade.
Featured photograph (source: cptcindia.com) is for representation only.
