The government has prepared to bring Indian investment in the Phukot Karnali semi-reservoir hydropower project in Kalikot.

The government has asked NHPC India Limited, owned by the government of India, to invest in power generation in order to develop a project in collaboration with the government-owned power generation company.

Phukot Karnali Hydropower Project is a semi-reservoir project having a capacity 480 MW to be constructed in Sani Triveni Rural Municipality-1 of Kalikot.

During the feasibility study, a test tunnel of 520 metres is being dug.

There is a plan to build a 160-metre-high dam in Sisnegada of Sani Triveni Rural Municipality-3 and channel it through a 13.5 km tunnel to the power plant to be constructed in Bhautegada of Sani Triveni Rural Municipality-1.

The project costing about Rs. 92 billion is expected to be completed in five years after the start of construction. Now, the power generation company is working.

Babu Raj Adhikari, the Information Officer of the Ministry of Energy, Water Resources and Irrigation, said that the government had planned to bring investment of NHPC India Limited in Phukot Karnali Hydropower.

He said that the draft of Memorandum of Understanding (MOU) for investment with Nepali companies was being prepared.

"If there is a MoU as per the proposal, the power generation company and NHPC India Limited Company will be formed as a separate company. Through that, the project construction work will proceed," he said.

Surya Prasad Rijal, managing director of the power generation company, said that the talks have been going on since a year ago and a draft of the memorandum of understanding has been prepared and sent to the ministry.

The ministry said that after finalising the draft of the agreement, it will proceed with the discussion with NHPC.

NHP source said that it has also sent the MoU draft to the government of Nepal to sign an agreement for investment in the project to be built in Kalikot.

According to the joint vision letter on energy cooperation between the Prime Ministers of the two countries in March last year, the ministry said that the Phukot Karnali semi-reservoir project is going forward with the joint investment of government-owned organisations of both the countries.

According to the draft of the MoU, Nepal will get 21.9 per cent free energy monthly from the project.

In the project, it is proposed that the power generation company will own 49 per cent and NHPC will own 51 per cent.

It is mentioned in the draft that NHPC will have to manage the market of the electricity generated from the project and the loan required to build the project on behalf of the promoter company.

If Nepal wants to consume the electricity of the project by itself, it will have the right to buy it. The project's electricity will be exported only when Nepal does not consume it.

It is proposed to capitalise expenses incurred in the project's license expenses, study and access road in the company the authority's share investment will be opened to build the project.

Chief of the project Hiraman Waiba said that not only Indian companies, but also Korean and Chinese companies are being considered, so it is the responsibility of the ministry to decide with whom to seal the contract.

Waiba said that the investment modality had not been finalised as companies from other countries, including India, were also under consideration.

According to a ministry source, the NHPC has expressed its desire to invest in Seti River-6 and Phukot Karnali after the West Seti reservoir project.

There is a high chance to sign an agreement with NHPC for the construction of this project.