About 72 billion 93 million rupees (537 million US dollars) have been invested to expand, improve and modernize the transmission and distribution system to make electricity supply reliable and quality within the country and to expand electricity trade with neighboring countries.

The Asian Development Bank (ADB) will provide 311 million dollars (42 billion 24 million rupees) concessional loans and 30 million dollars (4 billion 7 million rupees) for the expansion and improvement of the electricity transmission and distribution system. The European Union has 26 million dollars (3 billion 6 million rupees) and the Norwegian government has 30 million dollars 

(Rs 4 billion 21 crores) will be granted. $100 million (Rs 1.35 billion) will be provided through the Strategic Climate Fund. The Nepal government will bear the 130 million dollars (17 billion 98 million rupees) needed to implement the project. 

The projects implemented through ADB's South Asian Subregional Economic Assistance (SASEC) Electricity Transmission and Distribution Strengthening Project will mainly include 290 km of transmission lines, 5 new substations and the upgrading of two substations.

Single-phase meters in Kathmandu Valley's households will be removed and connected to smart meters (second phase), distribution substations will be modernized and automated, computer-based supervisory control and data acquisition (SCADA) will be connected, national transmission line construction and distribution system will be upgraded in Karnali Province. .

A subsidized loan and grant agreement has been signed between the government and ADB and Nepal Electricity Authority last Friday for aid mobilization. The plan will be implemented by the Nepal Electricity Authority.  Kulman Ghising, executive director of the authority, said that by utilizing the resources received from the development partners, mainly the improvement and expansion of the electricity supply system within the country, the construction of necessary infrastructure as a backbone to make the regional-sub-regional electricity trade reliable and the distribution system will be digitized.

'A large amount of money has been collected to address the consumer's complaints of power outages from time to time and to implement the improvement and strengthening of the infrastructure structures planned from previous years for sufficient, reliable, quality and safe electricity supply, now the plans will be implemented immediately, ' said Ghising.

Director of ADB Nepal Residential Mission Arnaud Kuswa mentioned that the aid will help to overcome the limitations of the grid infrastructure in the electricity supply according to the growing demand in the country and to meet the goal of green energy export.

'The assistance will be spent on the main components of the transmission and distribution master plan, it will help to transmit the electricity produced from hydropower projects for domestic consumption and increase the capacity of international electricity trade, the transmission and distribution infrastructure in Karnali and Lumbini provinces will be expanded, improved, upgraded and restored. , through which electrification will help to reduce energy poverty, eliminate socio-economic inequality between provinces.' 

160 km long 400 KV double circuit transmission line will be constructed from New Butwal Substation located in Sunwal Municipality-13 of Nawalparasi (Bardghat Susta West) to Lamhi in Dang through Rupandehi, Kapilvastu, Arghakhanchi. A 400 KV automatic substation based on Gas Insulated System (GIS) technology will be constructed at Lamhi. Construction of transmission lines and substations will cost 203 million dollars.