Kathmandu: MCA-Nepal has sealed a contract with Linxon India Pvt. Ltd. for the development of the 400 kV New Butwal Substation in Nawalparasi (Bardaghat Susta West) district, located in Lumbini Province.

Under the agreement, the Gas Insulated Switchgear (GIS) substation is slated for completion within 39 months. The signing ceremony saw the presence of Nepal Electricity Authority (NEA) Managing Director Kulman Ghishing, US Ambassador to Nepal, Dean R Thompson, local authorities, and people's representatives.

Ambassador Thompson expressed the US government's commitment to collaborate with Nepal to ensure that the Millennium Challenge Corporation (MCC) Pact serves Nepal's energy requirements. He emphasized that the New Butwal Substation will enhance Nepal's transmission capacity, contributing to reliable and affordable electricity for households, expanded commercial and industrial enterprises, and cross-border electricity trading.

NEA Managing Director Ghising underscored the significance of the 400 kV substation in boosting cross-border energy trade, supplementing the existing 220 kV substation.

MCA-Nepal Executive Director Khadga Bahadur Bisht highlighted the progress in implementing the MCC Nepal Compact, emphasizing efforts to expedite the construction of transmission lines and substations under the Electricity Transmission Project.

In addition to the New Butwal Substation, MCA-Nepal is also constructing substations in Ratmate, Nuwakot district, and Damauli, Tanahun district, funded by the U.S. Government's Millennium Challenge Corporation (MCC) and the Government of Nepal. Contractors for the remaining two substations are currently being selected.

The MCA-Nepal Board, chaired by the Secretary at the Ministry of Finance, has prioritized advancing the Nepal portion of the New Butwal-Gorakhpur power transmission line to facilitate timely initiation of cross-border power trade with India.