The Hydropower Sector

The hydropower sector in Nepal has been a preferred area for Foreign Direct Investment (FDI) in recent years. According to the Survey Report on Foreign Direct Investment in Nepal (2021/22) published by the Nepal Rastra Bank.
The total FDI stock in Nepal rose 16 percent to Rs 264.3 billion at the end of the fiscal year 2021-22. India ranks top in terms of total FDI stock with Rs 88.6 billion, followed by China (Rs 33.4 billion), Ireland (Rs 20.9 billion), Singapore (Rs 16.1 billion), and Saint Kitts and Nevis (Rs 15.1 billion).

Here are some notable hydropower projects in Nepal that have received FDI:

Ingwa Hydropower Limited:
Location: Trade Tower, Kathmandu, Nepal.
Ingwa Hydropower Limited is a project that has attracted foreign investment.

Puwa Khola – One Hydropower Limited:
Location: Anamnagar 29, Kathmandu, Nepal.
One Hydropower Limited is another project with foreign investment.

Upper Tamakoshi:
Status: Under construction.
Funding: Funded entirely by local resources (Nepal Electricity Authority – NEA).
Capacity: 456 MW.
While Upper Tamakoshi is not fully FDI-funded, it is worth mentioning as a significant project in Nepal’s hydropower development.

These projects demonstrate Nepal’s efforts to harness its abundant hydropower potential through foreign investment and domestic resources. The country aims to further develop its energy infrastructure and contribute to regional energy exchange with neighboring countries like India and China.