Nepal to Generate Energy From its Holy River, Bagmati

Jul 22nd, 2014 | By | Category: Energy, Hydropower, Nepal

(Xinhua) — The Nepal government is gearing up towards generating hydropower energy from Bagmati River, one of its most reverent and religiously significant river, officials said on Sunday.

The decision was made as part of the government’s plan to end power crisis within three years. Nepal’s Energy Ministry has already announced to utilize all of its available resources to maximize the energy generation.

Nepalis currently are reeling under 8 hours’ load shedding a day.

Department of Electricity Development (DoED), a government agency to issue license for hydropower production in the Himalayan country, had granted a generation license to a private power developer, Mandu Hydropower Company, over the last weekend.

“The company had previously submitted environmental impact assessment and detailed project study report which suggests that it is feasible to generate energy from Bagmati River,” Gokarna Pant, spokesperson at DoED told Xinhua by phone.

He said the generation license was issued to produce 20 MW energy within three years which is expected to cost around 42.3 million U.S. dollars.

“The company will start construction within this year after doing its financial closure,” added Pant, “If it fails to develop the project within three years, the license will be scrapped.”

According to the DoED sources, the project site will be located in Makwanpur district, some 100 kilo meters south from capital Kathmandu.

Meanwhile, Nepal’s state power monopoly has already signed an agreement with Mandu Hydro power Company, promising to purchase the generated energy. The power purchase rate has been fixed at Rs 4.40 during rainy season and Rs 8.80 during winter season. (Around Rs 100 makes 1 US dollars).

The government of the power-hunger country has laid special priority towards energy generation with a slogan, ‘Brighter Nepal, Prosperous Nepal’ in its recently unveiled budget.

The fiscal budget announced last week has allotted 131 million dollars for the development of power plants and 135.5 million dollars for construction of transmission lines.



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