Monday, April 20, 2026 12:05 PM

Govt pushes 640 MW Kaligandaki reservoir project

Kathmandu, April 20: The government has moved ahead with plans to build a 640 MW reservoir-based hydropower project on the Kaligandaki River, though significant technical, environmental, and social challenges remain.

The Department of Electricity Development has completed the Environmental Impact Assessment and submitted it to the Ministry of Forests and Environment for approval. The proposed project lies about 17 km upstream of the existing Kaligandaki ‘A’ plant. Initially planned at 844 MW, the capacity has been scaled down to 640.4 MW as more feasible.

Spanning parts of Gandaki and Lumbini provinces, the project will cover districts including Parbat, Baglung, Syangja, and Gulmi. A 244-meter-high RCC dam will be constructed, with an annual energy output estimated at 1,645.65 GWh. The total cost is projected at Rs 225.05 billion, translating to roughly Rs 351.4 million per MW.

Despite higher costs compared to run-of-river projects, the scheme promises multi-purpose benefits. These include irrigation for over 344 hectares, along with gains from fisheries and tourism, generating an estimated annual return of nearly Rs 7 billion.

Still, the human and environmental costs are hard to ignore. The project will directly affect 36 wards across seven local units. Around 2,469 households, or nearly 11,929 people, will be impacted, with over 2,100 likely to be displaced. More than 400 private structures and several public assets will be submerged.

The project will also require about 1,940 hectares of land, including large forest areas. Key infrastructure such as roads, bridges, and transmission lines will face disruption.

Authorities have pledged mitigation measures, including environmental flow releases and rehabilitation plans. While the project could boost dry-season power generation and support exports, its success will depend on how effectively these challenges are handled.

People’s News Monitoring Service

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