NMB Bank And HIDCL Will Inject 7.40 Arba Rupees Debt into Upper Modi A Hydropower Project

NMB Bank and the Hydroelectricity Investment and Development (HIDCL) Company are jointly investing 7.40 Arba rupees into the Upper Modi A hydropower project. This partnership involves NMB Bank contributing 4.40 Arba rupees, with HIDCL investing 3 Arba rupees. The signing of a tripartite loan agreement, attended by Energy, Water Resources, and Irrigation Minister Shakti Bahadur Basnet, marked the agreement between project promoters Modi Hydropower Company, NMB Bank, and HIDCL.

The overall project, including interest during construction, is estimated at 10.57 Arba rupees, with 70% financed through debt and the remaining 30% through equity from the project authority and the public. The project aims to complete the Upper Modi A hydroelectric initiative within a four-year timeline, currently in the preparatory stages with evaluations ongoing for the civil and hydromechanical aspects under Phase 1. Concurrently, infrastructure such as project site offices and residences are under construction.

Crucial approvals have been obtained for land acquisition, including forested areas, with NEA Engineering Company scheduled to supervise construction. Additionally, this company will oversee the 18.2 MW Upper Modi Hydroelectric Project. The financial management for the 42 MW Upper Modi A hydroelectric project, located in Annapurna Rural Municipality of Kaski, will be managed through a subsidiary company of the Nepal Electricity Authority.

Minister Basnet underscored the government's dedication to boosting domestic electricity consumption and exporting excess power to neighboring countries such as India and Bangladesh. He emphasized that previously, hydropower was primarily seen as an infrastructure without fully acknowledging its economic potential through electricity consumption.