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Dharche Rural Municipality in northern Gorkha is gradually emerging as a hub for hydropower production.

The rural municipality, which used to have low internal revenue due to its remote geographical location and the lack of industries, factories and large commercial establishments, has started generating income from hydropower projects in recent years.

Dharche Rural Municipality has collected around Rs. 1.5 million in internal revenue in the current fiscal year from hydropower projects that have been completed and are in operation within the municipality, according to Chief Administrative Officer Buddhi Ram Basnet.

The rural municipality, which has considerable potential for hydropower generation, said around a dozen projects are currently under construction or at various stages of development.

The municipality received Rs. 1.186 million in revenue for the first time from the 4.55-MW Upper Machhakhola Hydropower Project. Operated by Development Hydro, the project has been generating electricity since February 2023. Similarly, the municipality has collected Rs. 296,690 from the 5-MW Richet Khola Hydropower Project. The project, built on the Richet Khola River along the border between Dharche-6 Yarsa and Arughat Rural Municipality-1, has been generating electricity since July 2021.

Likewise, the municipality received Rs. 37,542 in revenue from the 2-MW Upper Richet Khola Hydropower Project. The project, constructed by Amulya Infrastructure Company, started generating electricity in 2024, said Dharche Rural Municipality chairperson Laxman Gurung.

Under the existing provision, royalties and revenues collected from hydropower projects are distributed among the three levels of government, with 50 per cent going to the federal government, 25 per cent to the provincial government and 25 per cent to the local government.

Preparations and procedures are currently underway for the construction of larger hydropower projects in Dharche, alongside smaller schemes.

The rural municipality expects its internal revenue to increase significantly if projects with capacities ranging from 200 MW to 300 MW are constructed.

As part of its goal of gradually making the local government self-reliant through its own internal resources rather than depending on the federal and provincial governments, the hydropower sector is expected to become an important source of revenue for Dharche.

Chairperson Gurung said other local governments could also increase their internal revenue by identifying their own potential and linking it with economic activities.

By Guna Bahadur Roka