Kathmandu: The Ministry of Energy, Water Resources and Irrigation has reported progress in energy policy and legislation, hydropower project facilitation, expansion of transmission infrastructure, irrigation services and improvements to disaster early warning systems during the six months since the formation of the current government.
According to the ministry’s latest six-month progress report, the Nepal Electricity Authority (NEA) has extended the Revised Commercial Operation Date (RCOD) for 27 hydropower projects with a combined capacity of 540.47 megawatts that are in the final stages of construction. An agreement has also been reached to increase Nepal–India electricity import and export capacity, while irrigation services have been expanded to additional agricultural land through projects including Sikta, Babai, Mahakali and Badkapath.
Progress in Energy Policy and Legislation
The ministry has secured Cabinet approval for the Renewable Energy and Energy Efficiency Bill and submitted it to Parliament. The report states that the Water Resources Bill has also been submitted to the Cabinet following approval from the Ministry of Law.
Initial drafts of the Electricity and Energy Development Policy, Electricity Bill and Irrigation Bill have been prepared, and consultations with stakeholders and the collection of feedback are underway. A National Energy Efficiency Action Plan has also been prepared.
Work is underway to develop a restructuring roadmap for the NEA, with plans to divide the authority into separate companies responsible for generation, transmission and distribution, and electricity trading. In line with the budgetary provision for completing the restructuring, the ministry is studying international practices and working to finalise the roadmap.
The ministry has also established a Good Governance Unit to implement results-based governance. A 24-hour toll-free number, 1151, along with WhatsApp and an AI-powered chatbot called ‘AI Saathi’, has been launched to address public grievances and provide assistance.
Agreement to Increase Nepal–India Electricity Trade Capacity
The 13th meeting of the Joint Steering Committee at the energy secretary level between Nepal and India reached important agreements on expanding cross-border electricity transmission and trade.
According to the ministry’s report, the two countries agreed to increase the combined electricity flow capacity of the 400 kV Dhalkebar–Muzaffarpur and Dhalkebar–Sitamarhi transmission lines from 1,000 MW to 1,400 MW for imports and from 1,100 MW to 1,650 MW for exports.
The meeting approved the Detailed Project Report (DPR) for the Chameliya–Dhauliganga 220 kV transmission line, which is targeted for completion by December 2028. The DPR for the Motihari–Nijgadh 400 kV transmission line was also approved. Plans are underway to use High-Temperature Low-Sag (HTLS) conductors to increase the capacity of the Muzaffarpur–Dhalkebar transmission line.
The meeting also decided to expedite the process of establishing a joint company between the NEA and India’s Power Grid Corporation for the construction of the Inaruwa–New Purnia and Dododhara (New Lamki)–Bareilly 400 kV transmission lines.
RCOD Extended for Projects With a Combined Capacity of 540 MW
The NEA has extended the Revised Commercial Operation Date (RCOD) for 27 hydropower projects with a combined capacity of 540.47 MW that are in the final stages of construction. The decision aims to facilitate projects that have been unable to complete construction within their scheduled deadlines.
According to the Department of Electricity Development, survey licences were issued during the review period for 23 hydropower projects with a combined capacity of 1,623 MW, while generation licences were issued for four projects with a combined capacity of 30.59 MW. Survey licences were also issued for 15 transmission lines, along with licences for seven new transmission lines.
During the same period, 33 new environmental study reports were approved. Hydropower projects generated Rs 4.323 billion in royalty revenue in fiscal year 2025/26, while an additional Rs 145.3 million was collected by the end of Bhadra in the current fiscal year, according to the report.
Progress in Transmission Line Construction
Construction has resumed on 18 transmission towers along the Hetauda–Dhalkebar section of the Hetauda–Dhalkebar–Inaruwa 400 kV transmission line, where work had been stalled for a long time. Of the 378 towers planned for the section, only two remained to be constructed at the time the report was prepared.
To improve the electricity distribution system, towers were constructed along the damaged section of the Kohalpur–Surkhet 132 kV transmission line under an emergency restoration programme, helping restore and improve the power system.
The 33/11 kV substations at Ghyampeshal in Gorkha and Uniyuchaur in southern Lalitpur have been constructed and brought into operation.
A 30 MVA, 132/33/11 kV substation at Salempur in Sarlahi, Madhesh Province, has been energised. The 33/11 kV substations at Pansera in Saptari and Mahendranagar in Dhanusha have also been brought into operation. The Salempur–Malangwa 33 kV double-circuit transmission line has likewise been energised.
During the review period, grid impact studies were completed for 39 hydropower projects with a combined capacity of 951.342 MW. Studies were also completed on additional and new electricity loads totalling 106.5 MVA for four major customers and industries.
Expansion of Irrigation Services: Progress in Sikta and Babai
Under the Sikta Irrigation Project, 13 kilometres of canals have been completed, extending irrigation services to an additional 1,300 hectares of agricultural land. Resource approval worth Rs 5.23 billion has been secured for the project.
Tenders were invited for 27 packages with an estimated total cost of Rs 5.11 billion. Contracts have been signed for 11 packages, and construction has begun, while the remaining 16 are still in the contract award process, according to the report.
The Babai Irrigation Project has secured resource approval worth Rs 4.07 billion. Irrigation services have been extended to an additional 600 hectares during the review period.
The Mahakali Irrigation Project has received resource approval worth Rs 3.31 billion, and contract arrangements have been made for the construction of nine kilometres of main and branch canals. The project has expanded irrigation services to an additional 1,155 hectares.
Under the Badkapath Irrigation Project, construction of the main canal has been completed up to the 17-kilometre point, providing irrigation services to 610 hectares of land. Resource approval worth Rs 1.05 billion has been secured, with the project targeted for completion within the next two years.
The Rani Jamara Kulariya Irrigation Project has extended irrigation services to an additional 150 hectares. An integrated work schedule has been prepared to complete the Bheri Babai Diversion Multipurpose Project by fiscal year 2026/27.
According to the ministry’s report, irrigation schemes operating under joint management are providing regular irrigation services to approximately 233,000 hectares of agricultural land. Construction of the barrage gates for the Jamuni Irrigation System is also nearing completion, with the aim of providing year-round irrigation to farmers in Bara and Rautahat districts.
Expanding Access to Alternative Energy in Rural Areas
Through the Alternative Energy Promotion Centre, small and micro hydropower projects generated 693 kW of electricity, while solar mini-grid systems generated 841 kW. These systems have expanded electricity access among households in rural areas, according to the report.
During the period, two solar-powered drinking water projects and three micro-hydropower irrigation projects were completed. A total of 315 solar irrigation pumps were installed, while rooftop solar power systems with a combined capacity of 18,575.30 kW were installed at various institutions.
Reconstruction was completed at 18 micro and small hydropower projects damaged by disasters, and one micro-hydropower project was connected to the national transmission grid.
Under clean cooking initiatives, a total of 119,500 technologies were installed or distributed, including household biogas plants, electric cooking stoves and improved cookstoves.
Improvements to Flood Early Warning Systems
Following flooding in the Bhotekoshi–Trishuli river system, agencies under the ministry intensified early warning and risk monitoring efforts, according to the report.
Approximately 700,000 SMS alerts were sent to riverside areas at risk of flooding in Rasuwa, Nuwakot, Dhading and Chitwan districts. A further 700,000 messages were subsequently sent to warn people about potential risks.
The Flood Forecasting and Information Centre operated around the clock throughout the monsoon season. A toll-free number, 1155, was also introduced to provide flood-related information.
CCTV cameras were installed in Timure, Rasuwa, to continuously monitor the Bhotekoshi River, while a real-time river monitoring system was established at Galchhi along the Trishuli River.
The Centre for Hydrology and Meteorology Research published a technical report examining the possible causes and impacts of the flooding. From September 23, the flood forecasting period for major rivers was extended from three days to five days. The forecast period for flash flood risks in small rivers across the country was also increased from 24 hours to 48 hours.
In weather forecasting services, impact-based forecasts have been expanded to 15 local governments, with trials underway in another 16. Tourism weather information services have been launched along six tourist routes in Sudurpashchim, Karnali, Lumbini and Gandaki provinces.
Achievements Accompanied by Implementation Challenges
The ministry’s six-month progress report outlines activities in policy and legislation, cross-border electricity trade, hydropower project facilitation, transmission line construction, irrigation expansion and disaster early warning systems. While some activities have been completed, others remain at the tendering, study, licensing or construction stages.
Therefore, the decisions and processes outlined in the report need to be distinguished from completed achievements. The results in the coming months will show when projects granted RCOD extensions actually begin commercial generation, whether transmission lines under construction are completed on schedule, how expanded irrigation services affect agricultural production, and how much the improved flood early warning system contributes to reducing disaster risks.
Nepalpurbadhar
