Banking News – A new hydropower project is set to be developed on the Chameliya River in Darchula, further strengthening the river’s position as a major hydropower corridor in Sudurpashchim Province.

The 28.30 MW Mid Chameliya Hydropower Project, promoted by Darchula Power Company, will be constructed in Marma Rural Municipality within the Api Nampa Conservation Area. The run-of-river project received its power generation license from the Department of Electricity Development (DoED) on March 26, 2025 (Chaitra 13, 2081 BS).

According to a public notice issued on Monday by the Ministry of Agriculture, Forests and Environment, a Supplementary Environmental Impact Assessment (SEIA) has been proposed for the project.

The original Environmental Impact Assessment (EIA) was approved by the then Ministry of Forests and Environment on March 20, 2024 (Chaitra 7, 2080 BS), while approval to conduct the supplementary study was granted on January 4, 2026 (Poush 21, 2082 BS). The additional assessment is required due to design modifications and relocation of project structures, which may result in new environmental impacts.

The Nepal Electricity Authority (NEA) and the project promoter signed a Power Purchase Agreement (PPA) on October 16, 2023 (Ashoj 29, 2080 BS). The project also achieved financial closure on June 4, 2026 (Jestha 21, 2082 BS).

The proposed project site is located around 30 kilometers northwest of Gokuleshwar in Darchula District. It is situated downstream of the 40 MW Upper Chameliya Hydropower Project and upstream of the 30 MW Chameliya Khola Hydropower Project, creating a cascade of hydropower developments along the river.

Electricity generated by the project will be connected to the Balach Substation of the Nepal Electricity Authority. The project is expected to generate 118.52 GWh of electricity during the wet season and 67.10 GWh during the dry season.

With an estimated investment of Rs. 6.24 billion (Rs. 6,23,62,67,390), the Mid Chameliya Hydropower Project is targeted for completion within the next three years.