Indian Minister of Power to Visit Nepal for Joint Inauguration of Koshi Corridor at Minister Khadka's Invitation

Kathmandu: Indian Minister of Power, Housing, and Urban Affairs, Manohar Lal Khattar, is scheduled to visit Nepal on Tuesday morning at the invitation of Nepal's Minister of Energy, Water Resources, and Irrigation, Deepak Khadka. The visit is aimed at jointly inaugurating the 220 kV double-circuit Koshi Corridor transmission line.

Minister Khadka and his Indian counterpart are set to formally inaugurate the 141-kilometer transmission line, which extends from Sankhuwasabha to Inaruwa. Construction of this transmission line began in Kartik 2074 (October/November 2017) with financial assistance from the Export-Import Bank of India.

According to the Ministry, the inauguration will include four 220 kV substations constructed at Basantapur, Baneshwar, Tumlingtar, and Dhungesanghu in Sankhuwasabha. The transmission corridor consists of the following segments: Baneshwar–Basantapur (33 km), Basantapur–Dhungesanghu (35 km), and Basantapur–Inaruwa (74 km).

The corridor is designed to evacuate power generated by hydropower projects in the districts of Bhojpur, Sankhuwasabha, Tehrathum, and Taplejung. The Nepal Electricity Authority (NEA) has signed Power Purchase Agreements (PPAs) with 28 private-sector projects, totaling 516 MW, to be connected to this transmission line.

Once fully operational, the corridor is expected to transmit approximately 1,000 MW from Tumlingtar to Basantapur, 1,000 MW from Dhungesanghu (Taplejung) to Basantapur, and around 2,000 MW from Basantapur to Inaruwa. It is regarded as a key infrastructure for electricity transmission in eastern Nepal and is expected to play a vital role in cross-border electricity trade with India and beyond.

Project Timeline and Investment

Construction of the Koshi Corridor began in 2016 with a total investment of USD 112 million—USD 90 million in concessional loans from the Government of India (GoI) and USD 22 million from the Government of Nepal (GoN), according to the NEA.

Under Package-2 of this transmission corridor—which includes substations at Inaruwa, Basantapur, Baneshwar (Chainpur), and Tumlingtar—the first tender was announced on Asar 20, 2073 (July 4, 2016). Kailash Dev Build India S Ltd (KDB–S JV) had submitted the lowest bid.

However, NEA terminated the contract with KDB–S JV and later awarded the work to Larsen & Toubro Ltd, with a revised plan to complete the project within 18 months, incorporating previous expenditures. This change occurred during the tenure of Kulman Ghising as the Managing Director of NEA.

NEA has stated that once the transmission line is fully operational, it will enable the delivery of sustainable and high-quality electricity to all districts of Koshi Province. Three substations of 220/132/33 kV capacity have been constructed at Baneshwar, Tumlingtar, and Basantapur, with a bay extension at the Inaruwa substation.