Nepal’s energy sector is witnessing a historic shift. In a major move to boost the country’s power infrastructure, the construction of the 400 kV West Seti transmission line is officially moving forward.

This massive project in western Nepal is being developed under a Public-Private Partnership (PPP) model—marking a transition from the private sector simply generating electricity to actively building the critical infrastructure needed to transmit it.

To bring this vision to life, a special purpose vehicle named the West Seti Transmission Company was officially registered on May 27, 2026, following green-light approval from the Board of Directors of Rastriya Prasaran Grid Company Limited (RPGCL).

Estimated to cost around Rs. 20 billion, the project will follow a traditional project financing structure with 30% Equity (Ownership shares) and 70% Debt (Loans).

The PPP equity split is uniquely structured to balance government oversight, private investment, and public inclusion:

Speaking to the founding partners, the Minister for Energy, Water Resources and Irrigation, Biraj Bhakta Shrestha, hailed transmission lines as the absolute “lifeline” of the energy sector.

"Participatory development is also an exercise of democracy," Minister Shrestha noted. "As collaboration with the private sector in transmission lines is a new practice for Nepal, the government will encourage it."

The Minister reassured investors that the government is fully committed to smoothing out any policy roadblocks, including the ongoing review of the Power Purchase Agreement (PPA). He emphasized that a stable, sustainable energy grid will breathe new economic life into Nepal’s far-western region.

Currently, western Nepal holds massive hydropower potential that remains untapped largely due to a lack of transmission infrastructure. Once completed, this 400 kV line will evacuate up to 2,500 MW of electricity from the Seti River basin into the national grid. Similarly, the line will directly transmit power from major upcoming projects, including the 750 MW West Seti Hydropower Project, the 450 MW Seti River-6, and the 170 MW Upper Seti Project. Moreover, the project will strengthen cross-border electricity trade, boosting energy security and long-term economic development.

Shailendra Guragain, Chairman of Samriddhi Energy Limited (a private partner in the project), rightly labeled the venture a "game changer," noting that the private sector's willingness to take on such risk highlights the immense long-term value of the project.

According to RPGCL’s Chief Executive Officer, Sagar Shrestha, preliminary surveys and land acquisition frameworks are already complete. The project has a strict five-year completion target, with next steps focusing on final land acquisition, right-of-way (RoW) clearances, and environmental/forest approvals.

The project spans 145 kilometers and features a 400 kV double-circuit transmission line stretching across three districts. The project starts at Chainpur Substation (Jayaprithvi Municipality, Bajhang) — featuring a 160 MVA substation capacity. The line will then passes through Banlek (Doti) — featuring a 315 MVA substation capacity and ends at Dodhara Substation (Bardagoriya Rural Municipality, Kailali).