Budhigandaki To Go Ahead

With about 6,000 rivers and rivulets, Nepal possesses vast water resources. When such resources are harnessed properly, the country could advance swiftly on the path of economic development and prosperity. Amidst a rising demand for hydropower in India and Bangladesh, Nepal may generate a lot of clean energy and export it to these neighboring countries. With the export of energy, the nation could make earn foreign exchanges. This helps the country minimise her widening trade deficit. It is notable that Nepal has made headway towards energy exchanges. After the construction of transmission lines, Nepal exports hydropower to India, especially in the rainy season. During the recent official visit to the southern neighbour by Prime Minister Pushpa Kamal Dahal Prachanda, the Indian government promised to purchase 10,000 megawatt of hydroelectricity from Nepal in the next 10 years. Domestic consumption of electricity has also been on the rise significantly over the years. Considering the negative impact of the use of fossil fuels on the environment, the government has embraced the policy of increasing the utilisation of hydroelectricity for transportation and cooking purposes.

With the increase in hydropower generation and expansion of transmission lines, more people living even in rural parts of the country are found using electricity. To meet the growing electricity demand, the government has encouraged more investors from home and abroad to invest in the hydropower sector. Some mega power plants like Arun III have now been under construction. The government has also announced to forward the much-hyped Budhigandaki Hydropower Project as a national pride project soon. While opening the field office of the Budhigandaki Hydropower Company Limited at Siurenitar of Gandaki Rural Municipality in Gorkha district on Wednesday, Prime Minister Prachanda vowed to construct the 1,200-MW hydropower project. Foundation stone for the project will be laid within few days and there will not be any delay in its construction. On the occasion, the Prime Minister directed the Ministry of Energy, Water Resources and Irrigation, Nepal Electricity Authority, Budhigandaki Hydropower Company Limited and other associated agencies to accelerate the project works.

Eight years back, the then government had taken the initiative to materialise the project. But the multidimensional project failed to go head due to a lack of clarity on investment modalities. The government is doing necessary homework for the investment required for the project. Last year, the government decided to set up the Budhigandaki Hydroelectricity Company Limited with an authorised capital of Rs. 60 billion to carry out the project. As per a cost estimate made in 2015, the project would cost US$ 2.6 billion while a revised cost projection puts it at US$ 2.77 billion. The project will be completed in eight years. As of now, the government has distributed Rs. 43 billion as compensation to those whose lands were acquired for the project. The project is anticipated to be a milestone for the nation's power sector development. 

A 263-metre high dam is going to be built in the Budhigandaki River. The dam will be located about two kilometres west from the Prithvi Highway at Malekhu. A reservoir 16 times bigger than the Phewa Lake will be developed for it. The mega project will have positive impact on various dimensions of economic development such as tourism and employment creation. The reservoir-based project will be instrumental in the development of fisheries and promotion of eco-tourism besides creating jobs for the locals. This project will prove to be a milestone in energy sufficiency as well as trade of surplus power.