A 40-megawatt hydropower project is set to be constructed in Jugal Rural Municipality of Sindhupalchok district. Balephi Hydropower Pvt Ltd has submitted a proposal for a run-of-the-river project to harness the Balephi River's water for electricity generation.

The feasibility study of the project, which got the approval of the Ministry of Forests and Environment for an environmental impact assessment on March 25, 2017, has already been carried out. After some delay, the company has initiated the process to obtain the construction permit for the project.

The Department of Electricity Development (DOED) has issued a public notice on Thursday regarding this matter. The stakeholders are invited to provide written opinions or suggestions if there is a possibility of adverse effects during the project's construction.

With an installed capacity of 40 MW, the project is expected to generate 223.997 gigawatt hours of electricity annually. The intake and other structures will be located on the right bank of the Balefi River. A 40-meter-long and 5-meter-high dam will be constructed to manage water flow, with the power plant situated underground.

The project will feature three 3-phase generators, and the water released from the powerhouse will return to the Balefi river via a tailrace tunnel.

The electricity generated will be transmitted to the national grid through a 30 km long, 132 KV single-circuit transmission line passing through 12 substations currently under construction. According to the company, the project is expected to be completed within three years of commencing construction.