Nepali and Indian private power producers have agreed to construct cross border transmission highways to kick-start hydropower trade between the two countries, daily newspaper the Kathmandu Post reported on Saturday.

"At least two transmission lines of 220 KV capacity each will be constructed within the next two years linking the two countries, " the English language newspaper reported, quoting the anonymous sources.

"We may reach in a decision within next two or three months on the issue of transmission line," Sandeep Shah, president of Independent Power Producers' Association of Nepal (IPPAN) said at the conclusion of two-day Nepal-India Power summit on Friday

Nepal is facing difficulties to import 50-100 megawatt of electricity from India to cover the shortfall of power during the winter season and export spillover power in the rainy season due to lack of cross border transmission line.

The Indian entrepreneurs also said that they would make announcements about their investment in hydropower projects in Nepal soon.

"Five of the hydropower projects can be selected for immediate investment," said CR Prasad, managing director of India's Everest Hydropower Limited.

Source: Xinhua