New Butwal substation, transmission line construction begins

KATHMANDU: The Millennium Challenge Corporation (MCC) Nepal Compact organized a special ceremony on Wednesday to commemorate the groundbreaking of the 18-kilometre transmission line and the New Butwal Substation in Sunwal, Nawalparasi.

Minister for Finance Rameshore Prasad Khanal, US Ambassador to Nepal Dean R. Thompson, MCC Resident Country Director Diane Francisco, and MCA-Nepal Executive Director Khadga Bahadur Bisht, among others, attended the ceremony.

The groundbreak marks the Compact’s transition from planning to the construction of critical energy infrastructure aimed at strengthening Nepal’s power transmission system and enhancing regional connectivity.

According to MCA-Nepal, the New Butwal segment is a key component of the broader Nepal–India cross-border transmission line, which is expected to boost electricity trade between the two countries and support regional economic growth.

Speaking on the occasion, Minister Khanal said the project reflects the government’s strong commitment to expanding clean energy access, enhancing regional power trade, and supporting the national goal of long-term economic growth. “With the support of MCC and MCA-Nepal, we are turning agreements into action for the benefit of the country,” he added.

Similarly, Ambassador Thompson said the US was proud to stand with Nepal as a committed partner in building a more reliable energy system. “Projects like this transmission line and substation will not only help keep the lights on for families and businesses, but also create opportunities for trade, growth, and prosperity across the region,” he added.

Similarly, Bisht said the transmission line and substation will create new opportunities for power trade and bring long-term benefits to Nepali citizens.

The 18km transmission line will connect the 400kV New Butwal Substation to the Nepal-India border.