MCA Nepal Expedites Construction of 400 kV New Butwal Substation

KATHMANDU; The construction work of the 400 kV New Butwal Substation in Nawalparasi (Bardaghat Susta West) under the MCC (Millennium Challenge Corporation) Nepal Compact has gained momentum, with the authority expediting the infrastructure building at the project site.

The Millennium Challenge Account (MCA) Nepal has stated that the construction work of the Gas Insulated Substation (GIS) building, control room (control building), transformer foundation, gantry and other necessary equipment is currently progressing rapidly at the project site.

A contract agreement was signed between MCA-Nepal and Indian construction company Linxon India Pvt Ltd for the construction of this substation on May 9, 2024. The construction work of this project, which costs a total of US $35.51 million (about Rs 4.75 billion), was started immediately after the agreement.

According to the contract agreement, the total construction period of the project has been fixed for 39 months. A target has been set to complete the complete construction of this 400 kV GIS substation by mid-August of fiscal year 2027/28.

Once completed, this substation is expected to make Nepal's electricity transmission system more robust and reliable, while opening an important gateway for Butwal-Gorakhpur inter-country electricity trade. This substation will remain a key infrastructure to ensure uninterruptible and quality electricity supply within the country in the coming years.