- Tuesday, 21 April 2026
Kathmandu, April 21: The 40-MW Rahughat Hydropower Project, promoted by Raghuganga Hydropower Company—a subsidiary of the Nepal Electricity Authority (NEA) — has achieved 95 percent physical progress.
With the construction of key structures such as the tunnel, dam, and powerhouse nearly complete, and equipment installation in its final stage, the project is now preparing for test production.
Managing Director Ganesh KC said preparations are underway to begin test generation by mid-May. “Civil, hydro, and electromechanical works have been completed,” he said. “We are preparing to fill water into the tunnel for testing after sealing its four entrance points.”
The civil construction contract was awarded to India’s Jaiprakash Associates in November 2017, with a target completion period of 45 months at a cost of Rs 6 billion. The deadline was extended multiple times, most recently on November 2025.
The dam has been constructed at Dagnam (Ward No. 4) and near Jhin (Ward No. 5) of Raghuganga Rural Municipality. A 6.27-kilometer main tunnel and two settling ponds have been completed. The powerhouse at Tilkenichaur has been built and is currently being painted.
One 20 MW unit has already been installed, while installation of components for the second unit is in its final phase. A switchyard has also been prepared to connect the generated electricity to the central transmission line.
According to project officials, delays were caused by the COVID-19 pandemic, floods and landslides, and shortages of river-based construction materials. The electromechanical contract was signed in November 2019 with Bharat Heavy Electricals Limited.
The project is being developed under the EPC (Engineering, Procurement, and Construction) model with joint investment from the Government of Nepal and the Nepal Electricity Authority, along with a concessional loan of 67 million USD from the Export-Import Bank of India.
The project had earlier terminated its contract with the previous contractor IVRCL in 2015 due to financial issues and resumed construction through a new process. Jaiprakash Associates began access road construction in 2018 and tunnel excavation in 2019.
The project aims to generate 240.593 million units of electricity annually.
A power purchase agreement (PPA) was signed in April 2019. Electricity generated from the project will be connected to the central grid through the Dana–Kushma 220 kV double-circuit transmission line under the Kali Gandaki Corridor. Four transmission towers and the required transmission line infrastructure have already been completed. Nepal #hydro
