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  • Wednesday, 22 April 2026

$60m German-backed transmission line gains momentum

Published Date : April 22, 2026

Nepal, Kathmandu, April 22: The Nepal Electricity Authority has stepped up work on the Lekhnath–Damauli 220 kV Transmission Line Project with financial and technical support from the Government of Germany.

The project is being co-financed by KfW Development Bank. It involves the construction of a 45-kilometre 220 kV double-circuit transmission line, along with modern gas-insulated substations in Lekhnath and Damauli.

Germany is providing technical assistance for the transmission line, while land acquisition is being handled by the Nepal Electricity Authority. Project Chief Jagdish Poudel said the expansion of reliable transmission infrastructure is essential to meet Nepal’s growing energy demand. Germany is contributing around 60 million US dollars to support the project, which is expected to promote sustainable economic growth by delivering clean energy to households and industries.

To move the project forward, authorities have intensified consultations with affected communities, particularly in Vyas Municipality and Myagde Rural Municipality. During a recent discussion in Ranitari, Vyas–6, Chief District Officer of Tanahun, Shivlal Tiwari, stressed that the project should not be obstructed, highlighting its importance for energy expansion.

Officials have assured that fair and scientific compensation will be provided based on assessed damages. However, local residents have raised concerns, demanding compensation that reflects current construction costs and, in some cases, seeking shares in the project.

With a transmission capacity of around 1,000 megawatts, the project is expected to strengthen the regional grid and support power evacuation from major projects, including the Tanahun Hydropower Project.

The initiative is also expected to reduce reliance on fossil fuels by enabling wider adoption of electric vehicles and low-carbon technologies, while enhancing Nepal’s overall energy security through improved grid reliability and increased integration of renewable energy.

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