⚡ 40 MW Rahughat Hydropower Project Faces Further Delays Despite Second Extension

Kathmandu – The 40 MW Rahughat Hydropower Project, under construction in Myagdi district and promoted by Raghuganga Hydropower Limited (a subsidiary of the Nepal Electricity Authority), has missed its second extended completion deadline — raising concerns over further project delays.

Initially contracted on November 17, 2017 (Mangsir 6, 2074 BS) to Indian civil construction firm Jaiprakash Associates (JP), the project was originally set to be completed within 45 months. However, even after a second deadline extension in February 2022, progress has stalled, and the current deadline of June 27, 2025, is also unlikely to be met.

🏗 Construction & Progress Update

As of now:

• Physical Progress: 79.50%

• Financial Progress: 75%

The contractor, Jaiprakash Associates, has requested another extension, proposing a new completion date of December 31, 2025. The project’s consulting firm, Wakfos, is currently evaluating this proposal.

🔌 Electromechanical Delays

Electromechanical work, awarded to Bharat Heavy Electricals Limited (BHEL) under a US$ 12.93 million contract in Kartik 2076 BS, has also fallen behind schedule. BHEL has yet to complete the import and installation of key equipment at the powerhouse.

💰 Financing & Project Model

The Rahughat project is being developed under an Engineering Procurement and Construction (EPC) model with:

• Concessional loan of US$ 67 million from the Export-Import Bank of India

• Joint investment from the Government of Nepal and the Nepal Electricity Authority

🔌 PPA & Transmission Infrastructure

• A Power Purchase Agreement (PPA) was signed in Chaitra 2075 BS

• Target annual generation: 245.93 million units

• Electricity will be connected to the central grid via the Kaligandaki Corridor

• Linked through a Loop In, Loop Out (LILO) connection to the 220 kV double-circuit Dana-Kushma transmission line

• Four transmission towers and lines have already been constructed for grid integration

🇮🇳 Bilateral Involvement & Oversight

Given the slow pace of progress, the Government of India, Nepal’s Ministry of Energy, and the NEA have expressed increased concern. With funding from India and execution by Indian contractors, both governments are now monitoring the project more closely to ensure timely delivery.

📸 Images & Content Courtesy: 
📰 Source: UrjaSanchar.com