Process underway to handover construction of 480 MW Phukot Karnali Hydroelectric Project to NHPC, India

Kathmandu: Preparations are underway allowing NHPC Limited, an undertaking of the Indian government, to build Phukot Karnali Hydroelectric Project, the only pride project of Kalikot district.

The government has been looking forward to building the semi-reservoir project under the joint investment of the Power Generation Company (PGC) and NHPC Limited. Surya Rijal, managing director of PGC, said that the company’s board has recently approved 51 percent of the project for investment by NHPC, while the remaining 49 percent will be from the PGC.

Rijal said they will forward the board’s decision to the Ministry of Energy. “The ministry will need the Cabinet’s approval to materialize the decision,” he said.  

According to him, NHPC had proposed to invest in Phukot Karnali in December 2021 last year. On the other hand, the government is also looking forward to handing over the contract of the project to the Indian company. The detailed project report of the project has already been finalized.

While the access road has also been constructed, the Karnali highway is also nearby. Most of the necessary land has already been acquired.

Hiraman Waiba, the project chief, said the bidding document is also ready.  "We have also prepared the environmental impact assessment report (EIA) and sent it to the Department of Energy Development.”

The feasibility study shows that the project will cost Rs 92.3 billion and can be completed within five years of the start of construction. Provided everything goes as per plan, the electricity generated out of this project will be sold to India through the Karnali Corridor transmission line. The National Transmission Grid Company has already signed an agreement with the Indian company Kalpatru to construct a 400 kV transmission line in the Karnali Corridor.

Of late, Indian companies have shown interest in investing in large hydropower projects in Nepal. Earlier, an agreement was also signed with the Indian company NHPC for the construction of 750 MW West Seti and 450 MW Seti River hydropower projects.

India has also been entrusted with the construction of 900 MW Arun-III. Arun-IV of 490 MW, Lower Arun of 679 MW has also been entrusted by the Indian company.