Nepal is to start construction of four high voltage transmission links in collaboration with India to make bulk power exchange between the two countries possible.

According to a report, Nepal Electricity Authority (NEA) on Friday, is signing a Memorandum of Understanding (MoU) with Infrastructure Leasing & Financial Services Limited (IL&FS), one of India's leading infrastructure development and finance companies.

Absence of high-voltage transmission links has so far curtailed the two neighbors' attempts to exchange simultaneous seasonal spillovers and shortages across the border.

The construction of the 220 KV transmission links will assist in stabilizing seasonal power imbalances across the border and also serve as a super highway for bulk export of power to India in the future from major hydropower projects of the country that are in the process of being awarded to investors from India and other countries.

The report quoted NEA's Managing Director, Arjun Karki as saying that IL&FS will have 26 percent equity participation in the transmission corridors along the Nepali side of the border, while 74 percent will be owned by Nepal, including 50 percent by NEA and 24 percent by Nepali financial institutions.

The transmission links will be built along Butwal-Gorakhpur, Dhalkebar-Muzaffarpur, Duhabi-Purnia and Anarmani-Silgadi sectors respectively.

NEA's board had authorized the state electricity body to negotiate with IL&FS for the purpose in December last year.