PM Dahal instructs officials to expedite Budhigandaki project

Speaking at a discussion at the Office of the Prime Minister and Council of Ministers on Tuesday, Dahal said that since the government has already signed an agreement to export 10,000 MW of hydropower in the next decade, projects of this magnitude must be expedited without further delay. Dahal said since the government has already disbursed compensation to the project-affected individuals, there should be no confusion among the concerned entities—the energy ministry, Nepal Electricity Authority, and Budhigandaki Hydroelectric Company Limited—regarding the project’s implementation. “As Rs 43 billion has already been distributed as compensation and transactions of other land and property have been frozen in the project-affected area, there should be no uncertainty about the project,” he told officials

Minister for Energy, Water Resources, and Irrigation, Shakti Bahadur Basnet, informed that the ministry has initiated preparations for resource mobilization for the project.

Likewise, Chief Secretary Dr Baikuntha Aryal said that Rs 5 out of the Rs 10 per liter infrastructure tax on petroleum products, levied by the government, has been allocated for the project.

Similarly, Jagat Shrestha, Project Chief of Budhigandaki Hydroelectric Company Ltd, made a presentation on the project’s current status and plans.

The Budhigandaki hydropower project will be built on the Budhigandaki River which flows through the borders of Dhading and Gorkha districts. The feasibility study for the project was conducted in the early 1980s. After the feasibility study report, NEA enlisted the French company Tractabel in 2012 to prepare a detailed project report for the mega hydropower project. According to the latest project design, the installed capacity of the reservoir project will be 1200 MW.

The Budhigandaki Hydroelectric Company Ltd has an issued capital of Rs 20 billion, with the Ministry of Energy holding 50% of the shares, the Ministry of Finance holding 30%, and NEA owning the remaining 20%. The estimated cost of the project is Rs 331 billion.