Cabinet Approves Investment Modality for 1,200 MW Budhigandaki Hydropower Project, Construction to Progress

Kathmandu. The construction process of the 1,200 MW Budhigandaki Hydropower Project has moved forward after the Office of the Prime Minister and Council of Ministers approved the investment modality. The Cabinet had approved the investment model on Falgun 12, and the Ministry of Energy was formally informed last week. According to Chief Executive Officer Arun Rajouria, the main construction work is planned to begin from Poush 2084 (around January 2028). The project, which will be built on the border of Gorkha and Dhading, has almost completed the land acquisition process, and preparations are underway to obtain the survey permit by Asar. The tender for Lot-1, which includes permanent camps, access roads, and a bridge, will be called within the current fiscal year, while Rs 460 million has already been allocated in the current fiscal year 2082/83 budget. As per the investment modality, 30 percent of the project will be financed through equity and 70 percent through loans, with the total estimated cost standing at Rs 404 billion. Once completed, the project is expected to become a national pride project and make a significant contribution to Nepal’s electricity production.