Indrawati III Hydropplant Shut for a Month: Daily Loss of 400,000 Rupees

Sindhupalchok — The Indrawati Third Hydropower Project in Sindhupalchok has been shut down for a month. With the management of National Hydropower failing to show urgency in repairs, the 7.5 MW project is losing an estimated daily average of 400,000 rupees in revenue.

The project, built by National Hydropower with 100% Nepali private investment, began power generation 23 years ago. Its dam is located in Panchpokhari Rural Municipality and powerhouse in Melamchi Municipality. During dry seasons, it had been generating an average of 3.5 MW of electricity.

An employee of the project said the shutdown during peak tariff season has cost millions in lost revenue. Around 12 million rupees have already been lost during this period. The project had begun commercial generation on October 8, 2002.

The penstock pipe ruptured on March 24 this year. According to sources, bank officials and consultants had inspected the site 15 days ago for repair financing. However, banks are hesitant to release loans due to questions regarding the management’s competence. “Disputes over management issues have hampered loan disbursement,” a source claimed.

Company director Bisheshwar Suvedi said technical estimates for repairs are underway, an insurance claim has been filed, and even if funds fall short, the company will conduct repairs and resume operations using its own revenue. “The project is very old and needs repairs,” he said.

Floods in July 2024 had already damaged the project, costing millions. Suvedi said about 33 meters of tunnel now needs repair.

Since this project was built entirely with Nepali private capital after the political change of 1990, shareholders have long complained they have not received fair dividends due to poor and non-transparent management. The project was initially led by NB Group. After NB Group failed to operate the project transparently, National Hydropower gradually came under others’ control.

National Hydropower Company Limited is currently building Lower Indrawati in Sindhupalchok and holds a major stake in the 14.15 MW Irkhuwakhola project in Bhojpur, which has begun generation. However, employees of Indrawati III have complained that they are not even receiving their salaries on time.