NHPC Limited, a Government of India Enterprise, and Vidhyut Utpadan Company Limited (VUCL) of Nepal have signed a Memorandum of Understanding (MoU) for the development of the Phukot Karnali Hydro Electric Project in Nepal. The MoU was signed in New Delhi in the presence of Prime Minister Narendra Modi and Prime Minister Pushpa Kamal Dahal 'Prachanda' of Nepal at Hyderabad House. The MoU documents were exchanged by R.K. Vishnoi, Chairman & Managing Director of NHPC, and Surya Prasad Rijal, Managing Director of VUCL. This agreement marks a significant milestone in the India-Nepal Joint Vision on Power Sector Cooperation.

NHPC Limited, a premier Public Sector Undertaking in India for hydropower development, and VUCL, responsible for large-scale hydropower projects in Nepal under a public-private partnership model, will collaborate on the Phukot Karnali Hydro Electric Project. The project will harness the flow of the Karnali River for power generation, with a total installed capacity of 480 MW and an average annual generation of about 2448 GWh. It will be integrated into Nepal's power system.

The project features a 109 m high RCC dam and an underground power house that will accommodate six turbines of 79 MW each. Additionally, a Surface Power House with a capacity of 6 MW, consisting of two machines of 3 MW each, is also planned to ensure minimal environmental impact. The Phukot Karnali Hydro Electric Project follows a Peaking Run-of-River (PRoR) type scheme. This collaboration between NHPC and VUCL signifies the commitment of both countries towards sustainable energy development and strengthens the bilateral ties between India and Nepal. The project's successful implementation will contribute to Nepal's energy security and support its economic growth.