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Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has said that Nepal will now move forward with reservoir-based hydropower projects as a national priority. He stated that such projects are essential for long-term energy security, industrial development, agricultural modernization, and economic transformation.

During his first official field visit to the Kulekhani Hydropower Project, Minister Shrestha clarified that the government’s primary focus in the coming days would be on the development of reservoir-based projects. He noted that these projects are not only a means of electricity generation but also play a crucial role in flood control, irrigation expansion, water management, tourism promotion, and balancing energy supply.

While interacting with employees of all three Kulekhani hydropower stations, the minister said that climate change has led to irregular rainfall, melting glaciers, and increasing natural risks, making water storage infrastructure even more important for the future. He added that the visit was also aimed at understanding the key considerations necessary while developing new reservoir-based projects.

He said reservoir-based hydropower projects can generate additional electricity during peak demand hours, making them highly useful for ensuring sustainable energy supply to industries, businesses, data centers, information technology industries, and urban areas. According to him, this would also support broader economic activities.

Minister Shrestha suggested that the Nepal Electricity Authority prepare an integrated development model for reservoir-based projects with a focus on multipurpose utilization. Stating that Nepali manpower is now capable of constructing and operating such projects, he emphasized the need to attract both domestic and foreign investment.

He also mentioned that the government has fixed the license period for reservoir-based projects at 50 years to increase private sector interest, adding that these projects can deliver multidimensional benefits.

Describing the Kulekhani project as Nepal’s “role model” hydropower project, Minister Shrestha said its contribution to economic and social transformation should be made even more effective. He also directed concerned authorities to promptly address local grievances and pay attention to watershed demarcation, waste management, and protection of project assets.

The Kulekhani project, including the Indrasarovar located in Indrasarovar Rural Municipality of Makwanpur, is Nepal’s first reservoir-based hydropower project. Completed in 1982, the project has a total installed capacity of 106 MW. Under the project, Kulekhani-I generates 60 MW, Kulekhani-II produces 32 MW, and Kulekhani-III generates 14 MW of electricity.

The Kulekhani project has been established as a key pillar of Nepal’s energy sector by helping maintain balance in the national power system during the dry season and periods of high electricity demand.

Urjasanchar