Government Allocates Rs 85.54 Billion for Energy Infrastructure, Targets Completion of 10 Transmission Lines Next Year
The government has allocated Rs 85.54 billion for electricity generation, transmission, and distribution infrastructure in the upcoming fiscal year 2083/84. Of the total amount, Rs 70 billion has been set aside for the completion of under construction transmission lines and substations, according to the Ministry of Energy, Water Resources and Irrigation.
Speaking at a press conference on Sunday, Finance Minister Dr. Swarnim Wagle said the budget for fiscal year 2083/84 (2026/27) gives strategic importance to the energy sector and aims to attract greater private sector investment in electricity production, transmission, and trade.
The government has set a target of completing at least 10 transmission line projects within the next year. Among the major projects scheduled for completion are the 400 kV Hetauda–Dhalkebar–Inaruwa transmission line and the New Khimti–Barhabise–Kathmandu transmission line.
Several other projects have also been included in the completion list, including the 132 kV Lalbandi–Nawalpur–Salimpur, Kushaha–Biratnagar, and Nepalgunj–Nanpara transmission lines. The government also plans to complete the 132 kV Kushma–Lower Modi–New Modi and Kaligandaki–Ridi transmission lines within the fiscal year.
In addition, the 220 kV Tumlingtar–Shitalpati transmission line, the 132 kV Dhalkebar–Balganga and Bhumai–Hakui transmission lines, as well as a cross-border Nepal–India transmission line, are targeted for completion. The government has also pledged to speed up construction of the 400 kV Hetauda–Ratmate–Lapsiphedi–New Damauli–New Butwal transmission corridor.
To strengthen cross-border electricity trade, the Butwal–Gorakhpur and Inaruwa–Purnia transmission lines have been given priority. The budget also includes plans to complete studies and move forward with the construction process for the Dhalkebar–Muzaffarpur–Sitamarhi, Lamki–Dodhara–Bareilly, Lamahi–Lucknow, Nijgadh–Motihari, and Chilime Hub–Kerung transmission lines.
The government has also announced measures to accelerate the Karnali Corridor National Transmission Line and expand electricity access in local levels of Karnali Province that are still not connected to the national grid.
The budget aims to complete around a dozen strategically important transmission line projects to prevent electricity generated by hydropower projects from going to waste and to improve the management of electricity supply and demand across the country.
In addition, the government has introduced policies to promote industries based on clean energy, encourage electric vehicle manufacturing, expand charging stations, and support battery management through tax and infrastructure incentives.
Uttam Bhlon Lama, Vice President of the Independent Power Producers' Association Nepal (IPPAN), welcomed the announcements made through the budget, describing them as positive steps for the country's energy sector.
