China relinquishes two power projects to Nepal
Kathmandu awarded the much-delayed West Seti Hydropower Project and Seti River Hydropower Project to a major Indian enterprise almost four years after China withdrew from these projects.
A formal agreement on the projects was inked this week in Kathmandu, after a resolution by the two nations' prime ministers to extend their power sector relationship, which includes Indian power majors in Nepal.
Investment Board Nepal and National Hydro Power Corporation Ltd signed the MoU last Thursday to build two projects totaling 1,200MW: West Seti and Seti River (SR6). The 750MW West Seti and 450MW SR6 projects are in western Nepal's Bajhang, Doti, Dadeldhura, and Achham districts.
Prime Minister Sher Bahadur Deuba stated, "During my recent visit to India, Prime Minister Narendra Modi and I agreed on a vision statement on collaboration in the electricity industry, highlighting the need to promote mutually beneficial bilateral cooperation in this area." During Prime Minister Modi's visit to Lumbini, we had a constructive conversation on this topic, and I invited Indian firms interested in developing the West Seti Hydroelectric Project.
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02-2026
