Nepal Facilitates Help for Hydropower Projects by Indian Companies

Nepal has extended the date for survey license for a hydropower project being developed by NHPC and approved to work for a direct agreement for another by SJVN with an aim to facilitate Indian power companies to execute projects in the Himalayan nation.

The decisions about reservoir-based West Seti hydropower project being developed by National Hydroelectric Power Corporation, India (NHPC) and Arun III hydropower project being developed by Satluj Jal Vidyut Nigam (SJVN) and to facilitate Indian companies for hydropower projects was taken at the 67th meeting of the Nepal Investment Board (NIB) here.

The meeting, chaired by Prime Minister Sushila Karki, on Wednesday decided to extend the date of the survey license for the reservoir-based West Seti hydropower project, a statement from the NIB said.

The 800 MV project was earlier with China’s Three Gorges Company and had failed to make progress on time.

The meeting also approved to submit a proposal to the Nepal government for approval of the draft for a direct agreement for the Arun III hydropower project being developed by India’s Satlaj Jala Vidyut Nigam (SJVN).

The meeting also authorised NIB CEO Sushil Gyevali to issue a license for the Lower Arun Hydropower Project (669 MW) after approving the draft of the power generation license, the statement said.

The meeting also approved investment for the Betan Karnali Hydropower Project, a 439 MW semi-reservoir-based project, the NIB said.

The estimated cost of the project is around ₹9,340 crores (₹5,800 crores approximately as of November 2025). Formation of a team for signing a project development agreement regarding the same was also approved, it said.

Three projects, West Seti, Arun III, and Upper Karnali, are being developed by Indian companies. In January 2024, agreements were reached between India and Nepal on various issues such as exporting 10,000 MWs of electricity within the next 10 years.

There are multiple well-endowed rivers originating in the higher reaches of the Himalayas – the four main being Mahakali, Karnali, Sapta Gandaki, and Sapta Kosi – flowing through different valleys and then cutting across plains before entering India to meet River Ganga. India has helped Nepal develop multiple hydropower projects on these high-volume rivers.