Central Electricity Regulatory Commission (CERC), in a recent order, has stated that “Butwal-Gorakhpur Cross Border Power Transmission Ltd,” a joint venture between Power Grid Corporation of India Ltd (PGCIL) and Nepal Electricity Authority (NEA) is eligible for a separate transmission licence.
The CERC order further states that the said JV should issue a public notice seeking suggestions/objections and such feedback be put before CERC by April 17, 2024. The matter is slated to come up for next hearing on April 19, 2024.
Butwal-Gorakhpur Cross Border Power Transmission Ltd (BGCPTL), a 50:50 joint venture between PGCIL and NEA incorporated in September 2022, is implementing the Indian portion of the 400kV New Butwal-Gorakhpur double-circuit cross-border interconnection line and associated bay extension work.
The project has been awarded to the BGCPTL under the regulated tariff mechanism (RTM) mode.
Estimated to cost Rs.462 crore, the project is scheduled for completion by May 30, 2026. The project will be used to export electricity from India to Nepal. As such, the entire transmission charges will be borne by Nepal Electricity Authority.
The implementation & transmission service agreement (ITSA) between BGCPTL and NEA was formalized on June 1, 2023, with estimated gestation period of 36 months.
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.
It is further learnt that the bay extension works on the Indian side will involve setting up of two 400kV GIS bays at the existing Gorakhpur substation of PGCIL. (At one time-point during the project planning stage, it was proposed to have a new GIS substation at Gorakhpur.)
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.
The Indian portion of this line (Muzaffarpur to Sursand) is owned by Cross Border Transmission Company Ltd – a joint venture between PGCIL (equity: 26 per cent), IL&FS Energy Development Company Ltd (38 per cent), SJVN Ltd (26 per cent) and Nepal Electricity Authority (10 per cent). PGCIL is in the process of buying out stake held by IL&FS Energy Development Company, and the proposal is understood to be currently under the review of National Company Law Appellate Tribunal (NCLAT).
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