Kathmandu – A high-level delegation, including Hitendra Dev Shakya, Manging Director of the Nepal Electricity Authority (NEA), the Secretary of the Ministry of Energy, Water Resources and Irrigation, and Indian Ambassador to Nepal, Naveen Srivastava, conducted an inspection of the under-construction Rahughat Hydropower Project in Myagdi district.

The 40-megawatt project, being implemented by Rahuganga Hydropower Limited, a subsidiary of the NEA, is progressing rapidly. The team visited the site to assess ongoing construction, challenges faced, and to discuss the necessary coordination for timely completion.

The project’s total estimated cost is Rs 9.17 billion. 

Of this, USD 67 million has been secured as a concessional loan from India’s EXIM Bank, with the remainder funded jointly by the Government of Nepal and the NEA.

The NEA aims to complete the project by Poush, FY 2082/83. 

Construction has been divided into two lots. Lot–1 includes civil and hydro-mechanical works such as the dam, tunnel, surge shaft, and powerhouse, contracted to India’s Jaiprakash Associates Limited.

This phase has achieved approximately 81 percent physical progress.

Lot–2 covers electro-mechanical components—turbines, generators, and transformers—under contract with Bharat Heavy Electricals Limited (BHEL). 

Around 50 percent of this phase has been completed, with equipment tested at BHEL's plant and installation underway on-site.

The project will feed electricity into the national grid via the completed Dana–Kushma 220 kV transmission line.

Once operational, it is expected to ease energy supply, optimise resource use, and contribute significantly to Nepal’s economic and social development.