Kathmandu: Construction of much-awaited 635-MW Dudhkoshi Reservoir Hydropower Project has been confirmed after the government allocated Rs. 940 million for its construction. Finance Minister Janardan Sharma, while tabling the budget for the coming fiscal year 2022/23 in the parliament on Sunday, informed the allocation of budget for the project.

The government has stated that the project would be given a priority, and the land is being acquired for it at Rabhuwaghat, on the border of Okhaldhunga and Khotang districts.

The project is being constructed at Rabhuwaghat in Dudhkoshi, on the border of Rawa Besi Rural Municipality-3 Lamidanda in Khotang and Chishankhugadhi Rural Municipality-6 Bhadaure in Okhaldhunga.

The project will acquire 13,000 ropanis of land in Khotang, 9,000 ropanis in Okhaldhunga and 500 ropanis in Solukhumbu districts, said Sitaram Prakhachen, deputy director of the project.

It is estimated that about 20,000 ropanis of land will be acquired besides government land for the operation of the project. Work is underway to acquire 5,304 plots of land in Rawa Besi Rural Muunicipality in Khotang, 522 plots in Anselukharka Municipality and 2,409 plots in Chishankhugadhi Rural Municipality in Okhaldhunga.

The project will affect 1,150 families in three districts. Of them, 657 families of Khotang, 479 families of Okhaldhunga and 14 families of Solukhumbu will be impacted. In Khotang, the work of evaluating the land for distribution of compensation for the project has been finalised, said Bikal Shrestha, coordinator of the compensation determination sub-committee and assistant chief district officer. But the landowners have complained that the project has delayed the payment of compensation.

The project will generate 3.44 billion units of energy annually. Out of this, 1.35 billion units will be produced in winter and 2.84 billion units in rainy season. The project will have two power houses with a total capacity of 635 MW. A 35-MW dam will be built nearby. Another 600 MW underground power house will be constructed at Halesi Tuwachung Municipality-8 Dhitung on the bank of the Sunkoshi.

A 13.4-km-long tunnel will be constructed to supply water to the power house. The construction of the project is estimated to cost Rs. 153 billion excluding interest.