Kathmandu — State-owned Rastriya Prasaran Grid Company Limited (RPGCL) has finalized the investment modality to construct the West Seti transmission line under a Public-Private Partnership (PPP) model.
Under the arrangement, a Special Purpose Vehicle (SPV) company will be established with 49 percent shareholding from the private sector and 51 percent from government entities. The SPV will then move forward with the construction of the 400 kV West Seti transmission line, according to RPGCL Chief Executive Officer Sagar Shrestha.
To implement the project under the PPP model, RPGCL had issued a notice on 7 Jan, 2026 BS seeking letters of intent from investors for the Bajhang–Banlek–Dododhara West Seti transmission line project, with 51 percent government investment and 49 percent private sector participation.
Earlier, RPGCL had also invited investment intentions on 8 Sep, 2025. However, according to Shrestha, the notice was later canceled after the company faced difficulties in deciding how to select from the large number of proposals received. Subsequently, the company formulated the “Electricity Transmission Project Investment Partnership Procedure, 2025-26” and reissued the notice in Dec/Jan seeking fresh expressions of investment interest.
According to the notice issued afterward, Samriddhi Energy Limited, Ngadi Group Power Limited, Sagarmatha Hydropower Company, Siuri Nyadi Power Limited, Mata Malika Energy Multiple Pvt. Ltd., Surma Sarovar Hydropower Pvt. Ltd., Chilime Hydropower Company Limited, and Chainpur Seti Hydropower Company Limited had submitted letters of investment intent.
Following the evaluation of the technical and financial proposals, RPGCL stated that five companies, including government entities, were selected to invest in the transmission line project.
On the private sector side, Samriddhi Energy Limited will hold a 35.1 percent stake, Siuri Nyadi Power Limited 6.9 percent, and Ngadi Group Power Limited 7 percent.
From the government side, Chilime Hydropower Company Limited — a subsidiary of the Nepal Electricity Authority — will hold 12.5 percent, Chainpur Seti Hydropower Company Limited another 12.5 percent, and Rastriya Prasaran Grid Company Limited 26 percent.
According to CEO Sagar Shrestha, preparations are underway to sign an agreement among the six companies representing both the private and government sectors. After the agreement, an SPV company with a share structure of 49 percent private investment and 51 percent government ownership will be officially registered.
“This is the first time the private sector has also been opened up to transmission line construction. The project will be developed under the PPP model,” Shrestha said. “We are moving ahead with plans to complete the company registration process and begin transmission line construction in the next fiscal year.”
According to RPGCL, the six companies will mobilize 30 percent equity investment and 70 percent debt financing for the project. “Around Rs 6 billion in investment has been secured from both private and government stakeholders for the West Seti transmission line, while the remaining Rs 14 billion will be raised through loans,” Shrestha said.
The West Seti transmission line project includes the construction of a 145-kilometer 400 kV transmission line and two substations. Of the total length, 60 kilometers will stretch from Bajhang to Banlek, while another 85 kilometers will extend from Banlek to Dododhara.
The project also includes the construction of 400/132 kV GIS substations in Bajhang and Doti districts. According to the notice issued by the company, a substation equipped with a 160 MVA transformer will be built in Chainpur, while another substation with a 315 MVA transformer will be constructed in Banlek.
The company has estimated the total project cost at around Rs 20 billion.
The transmission line will extend from the Chainpur Substation located at Hammersen in Jayaprithvi Municipality-1 of Buzhang, passing through the Banlek Substation in Shikhar Municipality-10 of Doti, and reaching the Dododhara Substation in Bardagoriya Rural Municipality-3 of Kailali.
Rastriya Prasaran Grid Company Limited has already completed the detailed engineering design and environmental studies for the 400 kV West Seti Corridor transmission line, including the Chainpur–Banlek and Banlek–Dododhara sections, as well as the substations at Chainpur and Banlek.
Various institutions have also signed agreements to cooperate on hydropower development and the construction of the 400 kV transmission line under the West Seti Corridor. On 21 July, 2025, during the tenure of former Energy Minister Deepak Khadka, a memorandum of understanding was signed among Hydroelectricity Investment and Development Company Limited (HIDCL), Rastriya Prasaran Grid Company Limited, Chainpur Seti Hydropower Company Limited, Chilime Seti Hydropower Company Limited, and Samriddhi Energy Limited to collaborate on the construction of hydropower projects and transmission infrastructure within the West Seti Corridor.
According to the agreement, the parties will collaborate multilaterally in the construction, financing, and operation of the 400 kV cross-border Bajhang–Nilegada–Dododhara transmission line, as well as the hydropower projects connected to it, including the 210 MW Chainpur Seti Hydropower Project, 87 MW Seti River-3 Hydropower Project, and 216 MW Upper Seti Hydropower Project.
After the SPV company is established, Hydroelectricity Investment and Development Company Limited (HIDCL) will lead the financial management of the projects.
The proposed 400 kV West Seti transmission line is expected to evacuate electricity generated from numerous hydropower projects, including the 87 MW Chilime River-3 Hydropower Project, 210 MW Chainpur Seti Hydropower Project, 216 MW Bajhang Upper Seti Hydropower Project, 25.05 MW Sunigad and Upper Sunigad projects, 46 MW Super Seti, 60 MW Badimalika, 60 MW Nyadi, 21.92 MW Bajhang Cluster, 54 MW Mahakali Seti, 72 MW Tapowan Seti, 9.84 MW Kalangad A, 12 MW Super Sunigad, 4 MW Lower Sunigad, 51.50 MW Ghatganga, 31.50 MW Syanban Khola, 16 MW Super Kalanga Khola, 9.60 MW Lower Seti (Bajhang), 15.33 MW Upper Kalangad, 10.70 MW Sunigad, 3 MW Lower Sunigad, 8 MW Lower Kalangad, 7.3 MW Middle Kalangad, 1,902 MW Mugu Karnali, 300 MW Balanch, 800 MW West Seti Hydropower Project, and the 20 MW Budhiganga Hydropower Project.
The government had initially planned to construct the West Seti transmission line using concessional loans from the Government of India. However, after Nepal proposed the project in Jul/Aug 2023, and failed to receive a positive response from India, the future of the project became uncertain.
In a letter sent to the Ministry of Energy, Water Resources and Irrigation on 26 Dec, 2024, the Ministry of Finance stated that no response had been received from the Indian government regarding the use of concessional financing for the project.
The Ministry of Finance had proposed utilizing the remaining USD 900 million from Line of Credit (LOC) III and IV agreements signed with the Government of India for the construction of the transmission line. The proposal was forwarded to the Indian government through the Ministry of Foreign Affairs and the Indian Embassy, but no response was received. The Finance Ministry stated in its letter that if an agreement is reached in the future, the proposal for financing the West Seti–Dododhara transmission line could be reconsidered.
After receiving no response for a year, the Cabinet on 29 Oct, 2024, decided to cancel the remaining USD 900 million concessional loan under LOC III and IV. With the transmission line project left in uncertainty, the government eventually decided to move ahead under a Public-Private Partnership (PPP) model.
Kantipur
