The development of transmission line system is the prime condition to develop the hydropower projects in order to address the energy crisis of Nepal. In this context, Government of Nepal on 12 July 2015 decided to set up a Company to transmit and evacuate the power for the development and operations of the hydropower sector. The Company's corporate office is located at the Kathmandu.
With the broad objective of developing electricity transmission line system and power evacuation in order to free the country from chronic power shortage, the Company's Memorandum of Articles stipulates following objectives:
- Study and Preparation of Transmission Line Master plan considering the demand and supply of electricity for long term.
- Development of transmission infrastructures to facilitate the electricity market for the management of transmission grid to supply the reliable electricity.
- Collection of wheeling charge with the transmission grid users.
- Collection of other royalties fixed by the regulator.
- Construction, expansion and modernization of transmission lines, substation and Load Dispatch Centers.
- The development transmission grid system will be based on the load centers and potential areas of hydropower potential. Also the consideration of east-west and north south transmission highway will be constructed based on the river systems.
- Evaluation, monitoring and control of grid system.
- Trunk communication system will be adopted in the transmission grid line.
- Development of manpower inside the company and providing the consultancy services.
- Ensuring the access of grid transmission to the users.
- Keeping the audit of electricity transmission and take responsibility for the real time operation.
The Company, established specifically to transmit the electricity and system operation, will perform the following functions:
- Borrow loans from banks and financial institutions with or without collateral.
- Recruit the staff required and fix the remuneration and other facilities
- Open and operate the bank account in the name of the company
- Make insurance against the security of the infrastructures
- Buy and sale shares, bonds and debentures in the name of company.
- Buy and lease the land, buildings, vehicles and other equipments in the name of company.
- Make capital investments in commercially and technically feasible transmission project proposals based on in-depth analysis.
- Merger of other company or parts of it which has the similar objectives and functions.
- Construction, expansion, operation and management of 66kV, 132 kV, 220 kV, 400 kV and above capacities transmission lines.
- Borrow loan and receive grant in foreign currency from individuals and institution, including non-resident Nepalese, international financial institutions like export-import banks, and foreign institutions.
- Invest jointly with local or foreign institutions as promoter in transmission projects.
- Manage loan portfolio and lend the amount received from GoN or from other local and foreign institutions to promote transmission line projects.