Hydropower Index Falls More Than 2.5%, as Rasuwa Flood Damages Hydropower Infrastructure

Nepal’s hydropower stocks came under heavy selling pressure today following reports of a major flood in Rasuwa, with investors concerned about possible damage to hydropower projects and related infrastructure. As of writing the Hydropower Index fell 90 points, or 2.5%, to 3,576.50 by 11:59 AM.

Rasuwagadhi Hydropower Company Limited (RHPL) led the decline, dropping 13.42%, while Chilime Hydropower Company Limited (CHCL) fell 7.39%. Other hydropower stocks also traded lower, including TVCL fell by 6.70% located in Nuwakot and Rasuwa district.

The sharp fall in hydropower stocks came after a major flood entered the Bhote Koshi River in Rasuwa from the Tibet side on Wednesday morning. Reports said the flood damaged settlements and hydropower projects in the Syabrubesi and Timure areas, while damage to some projects, including Chilime, has also been reported. Authorities have warned communities along the Bhote Koshi and Trishuli rivers to remain on high alert.

The extent of damage to the affected hydropower projects is still being assessed. The uncertainty has increased concern among investors, particularly toward companies with projects and operations in the affected areas. Rasuwagadhi Hydropower operates a 111 MW hydropower project in Rasuwa, while Chilime operates a 22.1 MW plant in the district.