Nepal and India have reached a preliminary understanding to jointly develop the 480-megawatt Phukot Karnali Hydropower Project. The agreement, forged during a recent bilateral Energy Secretary-level Joint Steering Committee meeting, positions India's state-governed NHPC Limited as a co-investor alongside Nepal's Vidhyut Utpadan Company Limited (VUCL). While the breakthrough was omitted from the official press release, officials confirmed that a draft Memorandum of Understanding has been finalized and awaits Cabinet ratification. The impending formal agreement will trigger the creation of a joint venture company to oversee construction in the Kalikot district, where VUCL has already initiated preliminary land acquisition. Per the negotiated terms, NHPC will command a 51 percent majority stake, assume the responsibility of sourcing project loans, and guarantee cross-border market placement for the generated energy. In return, Nepal is slated to receive 21.9 percent of the project's electricity output free of charge. This development further solidifies NHPC's growing portfolio in Nepal, adding to its ongoing oversight of the West Seti and SR-6 hydroelectric projects.
India's NHPC to Partner on Nepal's 480 MW Phukot Karnali Project
India's state-owned NHPC Limited is set to partner with Nepal's Vidhyut Utpadan Company Limited (VUCL) to jointly develop the 480 MW Phukot Karnali Hydropower Project in Kalikot, Nepal. Following a draft MoU reached during a bilateral energy meeting and awaiting Cabinet approval, the two entities will form a joint venture. NHPC will hold a 51% stake, assume the responsibility for securing project loans, and guarantee a market for the generated electricity, while Nepal will receive 21.9% of the power free of cost. This marks NHPC's third major hydropower venture in Nepal.
Published By Share Gyan
