Upper Hugdi hydropower will start generating power from next year, according to the promoters.
Promoted By Ru Ru Hydropower Project, the five megawatt (MW) project is estimated to cost Rs 750 million. “However, the cost will escalate to Rs 815 million, after adding the banks’ interest,” informed executive chairman of Sahas Hydropower Company Him Prasad Pathak.
Sahas Hydropower has bought 85 per cent share of Ru Ru Hydropower and currently constructing Gulmi district-based Upper Hugdi hydel project, he said, adding that Sahas Hydropower that has 856 shareholders is also planning to construct 11.8-km long transmission lines to connect the power station to the national grid. “The company has completed the survey for the transmission line and soon start construction.”
Sahas Hydropower that has an authorised and issued capital of Rs 500 million has already done Power Purchasing Agreement (PPA) at Rs 8.20 for dry season and Rs 4.80 for wet season with Nepal Electricity Authority (NEA).
Though the country is reeling under scheduled power outage, Nepal has huge potential for hydropower development that can not only support the industrial growth but also generate employment.
Though there is a demand of 1,100 MW of electricity currently, the supply stands at around 716 MW only, forcing the industries to operate half of their capacity and making the lives of the people harder.
Lack of awareness among the locals, effective policy, confidence in collective investment, adequate transmission lines to connect to national grid, lengthy paper works and low PPA rate are some of the hurdles for the development of the hydropower.

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