Banking News – The 22 MW Seti Khola Hydropower Project, located in Pokhara Metropolitan City-33, Kaski, has officially begun generating electricity, marking another milestone in Nepal’s hydropower sector.

Developed by Seti Khola Hydropower Limited, the project began construction in Mangsir 2078 BS (November/December 2021). Following inspection and testing by a technical team from the Nepal Electricity Authority (NEA), the electricity generated by the project has started flowing into the national transmission grid on a trial basis.

According to Deepak Baral, Director of the developer company, the project will remain under a 15-day testing period before commencing full commercial operation. During this period, electricity will continue to be supplied to the NEA’s transmission system while technical performance and equipment are thoroughly evaluated.

The project had originally aimed to begin power generation last Mangsir, but delays in obtaining forest clearance for the transmission line postponed its completion. Of the five transmission towers constructed for the transmission line, three are located within forest areas, requiring additional regulatory approvals.

The project’s dam has been constructed at Tiklang, Pokhara-33, from where water is conveyed through a 3,106-meter tunnel to the powerhouse at Lower Punditar. The facility is equipped with two turbines, each with a generation capacity of 11 MW, bringing the total installed capacity to 22 MW.

The project has been developed with an investment of approximately NPR 5.05 billion. Once commercial operation begins, the company plans to issue an Initial Public Offering (IPO) to the general public within the next fiscal year.

The Seti River has recently emerged as a growing hub for hydropower development. Last year, the 25 MW Seti River Hydropower Project, promoted by Vision Lumbini Urja Company, entered commercial operation. Several other hydropower projects are currently under construction or in the early stages of development along the river.