India and Nepal have signed an agreement to develop the 400KV cross-border power transmission line between Butwal (Nepal) to Gorakhpur (India). The agreement has paved the way for the construction of a second cross-border transmission line between the two countries which will prove to be the lifeline for Nepal in area of power trade. This is important to note that the signing of this agreement was a prerequisite for the implementation of the US Millennium Challenge Corporation (MCC) grant to Nepal, under which, if implemented, Nepal is to receive $500 million for electricity transmission and road infrastructure projects.
