Kathmandu: Karnali Province is set to witness the construction of a major hydropower project, as the 110.2 megawatt Upper Chuwa-Lurupya Hydropower Project is planned for Humla district’s Simkot and Kharpunath rural municipalities.
This peaking run-of-river project is being developed under a joint investment between Nepal Portfolio Energy Pvt. Ltd. and Malaysian company OHP Nepal Incorporated.
Originally initiated on 15 December 2019 with a survey license for 103 MW, a detailed feasibility study has since increased the project’s estimated capacity to 110.2 MW. The Environmental Impact Assessment (EIA) report was submitted to the Ministry of Forests and Environment in March 2025.
With a projected construction cost of Rs 22.85 billion, the project will harness water from two rivers—Chuwa and Lurupya—to generate electricity.
A 34.6-meter-long and 14-meter-high dam will be constructed on the Chuwa River, capable of storing 738,000 cubic metres of water. The headrace tunnel from this dam will stretch 2,831 meters.
On the Lurupya River, a 20-metre-long and 7-metre-high dam will be built, directing water through a pipeline tunnel to the powerhouse.
Tunnels from both rivers will converge at a single junction, leading to a 102-metre tunnel channeling the water to the power station. The powerhouse will be equipped with three turbines and will be located in Mugrik, Simkot Rural Municipality Ward No. 1.
To connect the power station and associated structures like dams on the two rivers, 9.6 kilometres of road will be constructed. The generated electricity will be fed directly into the national grid via the Mugu Hub substation. The total construction period is estimated at four years.
Once operational, the plant is expected to generate 617.28 gigawatt-hours of electricity annually, according to the submitted report.
During construction, the project will require the felling of 757 trees and utilize approximately 18.13 hectares of forest land. Beyond providing stable electricity to the remote Humla region, the project is anticipated to boost the local economy.
It is expected to create employment opportunities for around 610 people during the construction phase. Additionally, Rs 114.3 million has been earmarked for community development programmes, which include the construction of schools, health posts, drinking water systems, and irrigation tunnels.
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