REC Power Development & Consultancy Ltd (RECPDCL), a wholly-owned subsidiary of REC Ltd, is aspiring to turn into a transmission service provider (TSP) for 400kV lines in Nepal, and to this effect, is seeking consortium partners.
RECPCDL is seeking expressions of interest from partners so that it can bid in consortium for transmission projects in Nepal proposed for development under the tariff-based competitive bidding (TBCB) framework.
In the context of Indian power transmission projects under TBCB, RECPDCL has been playing a prominent role as the bid process coordinator with PFC Consulting Ltd (PFCCL) being the only other entity in this capacity.
This is the first time that RECPDCL itself is seeking to groom into a transmission service provider (TSP) itself, and that too in the international market.
RECPDCL is now seeking expressions of interest from eligible Indian entities that could act as a consortium partner, or even the lead partner, so that bidding for projects in Nepal could be done by the consortium consisting of up to three entities, including RECPDCL.
RECPDCL expects the consortium partner(s) to contribute towards all aspects of power transmission development, including: technical expertise, project execution, financial and investment support, O&M of transmission assets, etc.
Transmission opportunity in Nepal
The Nepal government, through its ministry of energy, water resources and irrigation (MEWRI), has proposed to adopt the TBCB philosophy for developing power transmission projects under the build, own, operate & transfer (BOOT) model.
Nepal Electricity Authority (NEA) has been named as the bidding agency – the very role that RECPDCL plays in Indian power transmission-TBCB projects – to select national or international transmission service providers (TSPs) for development of 132kV and 400kV transmission lines.
NEA is currently seeking TSPs for two lines of 132kV and an equal number with respect to 400kV. RECPDCL is keen to bid for the two 400kV lines, which are:
- Sitalpati (Arun Hub) – Inaruwa (95 km)
- Tingla — New Khimti – Sunkoshi Hub – Dhalkebar (134 km)
It is learnt that these two projects involve transmission lines only, with no substations. Both the projects are double-circuit lines, to be equipped with Quad ACSR Moose conductor.
It is further learnt that NEA, at this stage, is only seeking expressions of interest (EoI) from potential developers. The actual technical and financial bidding would be initiated based on the responses elicited by the EoI process.
Nepal’s need for private participation
In its Annual Report for FY25, the Transmission Directorate, Nepal Electricity Authority, has identified significant investment gap in power transmission development due to limitations in fiscal budgetary allocations. It is learnt that over 11 GW of hydropower projects are already backed by power purchase agreements and applications for another 16 GW are under process.
Nepal has targeted to create transmission infrastructure to support evacuation of around 28.5 GW of hydropower by the year 2035. To support this transmission upgrade, NEA has opened the doors to private sector participation through the TBCB modality.
As of end-FY25, Nepal had a total transmission network of 6,760 ckm across voltages 66kV, 132kV, 220kV and 400kV. The bulk of this network – around 62 per cent – was from 132kV lines. The hilly nation’s total transformation capacity currently stands at around 14 GVA.
Also read: RECPDCL seeking survey agencies for TBCB power transmission projects
Featured photograph (source: Nepal Electricity Authority) is for representation only