India's NHPC will commence construction of the 480 megawatt Phukot Karnali Hydroelectric Project in Nepal. The Kathmandu government has agreed to develop the project in collaboration with NHPC India and Vidhyut Utpadan Company Limited (VUCL), a government venture. Surya Rijal, the business's managing director, stated that the company has determined that NHPC will fund 51% of the project and the Power Generation Company will invest 49%. Our discussion has been going on for a year. The board had passed this decision earlier too. However, we couldn't make the decision. It should be approved by the Council of Ministers as well, he said. According to officials, if negotiations are successful, a memorandum of understanding (MoU) for the collaborative development of the project will be inked during Prime Minister Pushpa Kamal Dahal's, Prachanda's, visit to India. According to Rijal, this decision will be enacted only after cabinet approval. We will send this decision to the Ministry of Energy very soon. We do not know when the ministry will take it to the cabinet and when it will be approved, he said. He claims that NHPC proposed investing in Phukot Karnali in December of last year. NHPC has now established itself as a prominent participant in Nepal's energy market. In August of last year, NHPC Limited (NS:NHPC) inked an MOU with Investment Board Nepal (IBN) to develop the 750 MW West Seti and 450 MW SR-6 hydropower projects in Nepal. The 480 megawatt Phukot Karnali hydropower project, for which a detailed study report (DPR) has been written, has yet to begin construction. The main structure's development has been delayed for two years due to an inability to attract finance for the project, which is currently in the planning and building stages. A joint venture investment agreement with NHPC will be inked if approved by the Cabinet of Ministers. According to the feasibility assessment, the project will cost Rs 92.3 billion and will be completed within five years of construction beginning. The 480 MW of electricity produced here will be sold in India. The electricity generated by this project will be transported to India via the Karnali Corridor transmission line. The National Transmission Grid Corporation has agreed to build a 400 kV transmission line in the Karnali Corridor with the Indian business Kalpataru. The Indian business has also been entrusted with the construction of the 900 MW Arun-III, 490 MW Arun-IV, and 679 MW Lower Arun. According to the joint vision letter on energy cooperation between the two countries' Prime Ministers in March last year, the Ministry stated that the Phukot Karnali semi-reservoir project is moving forward with the joint investment of both countries' government-owned organisations. According to the draft, NHPC will be responsible for managing the market for the electricity generated by the project as well as the loan required to build it. Nepal will have the option to purchase the project's electricity if it wishes to use it independently. Only when Nepal does not need the electricity will it be exported from the plant. It is suggested to capitalise project-related licence costs, research costs, and access road costs in the business where the authority would open a share investment to construct the project. See also: MAY 2023: Subansiri Lower hydroelectric project Cabinet approves NHPC's investment in India's largest hydro project