Karnali’s 570 MW Hydropower Projects Move Forward with NPR 130 Billion Funding

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Kathmandu – Preparations for the construction of two large hydropower projects with a combined capacity of 570 megawatts in Karnali Province have gained momentum.

The Ministry of Forests and Environment has made public, for comments and suggestions, the Environmental Impact Assessment (EIA) reports required for the construction of the Humla-Karnali I and II hydropower projects, which are being promoted by Ruru Hydropower Project Limited.

The total cost of both projects with a combined capacity of 570 megawatts is projected to be around NPR 130 billion. The Humla-Karnali I project will have a capacity of 235 megawatts, with an estimated cost of over NPR 57.27 billion. The project will span Sarkegad and Chankheli rural municipalities in Humla, as well as Soru rural municipality in Mugu.

This run-of-river project will include a 22-meter-high dam, a tunnel over 8 kilometers long, an underground powerhouse, and other structures. Once operational, it aims to generate 1,531 gigawatt-hours of electricity annually, utilizing up to 130 cubic meters per second of water.

Similarly, the Humla-Karnali II project will have a capacity of 335 megawatts. Its total cost is estimated at around NPR 72.9 billion.

The project will extend across Sarkegad and Kharpunath rural municipalities in Humla. It will feature a 62-meter-high headworks dam, two diversion tunnels, a headrace tunnel over 12 kilometers long, and a surface powerhouse.

Once operational, it is estimated to generate about 609 gigawatt-hours of electricity in the dry season and 1,184 gigawatt-hours in the wet season, adding a total of 1,795 gigawatt-hours of energy annually to the national grid.

The report states that a separate budget has been allocated for land acquisition, environmental impact mitigation, afforestation, and corporate social responsibility (CSR) programs during the construction of both projects.

With an estimated total cost of around NPR 130 billion, these projects are expected to become major hydropower developments promoted by the private sector in Nepal.

It is believed that, for the first time in Karnali Province, such large-scale projects will mark a historic leap in energy generation.

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