Rasuwa Flood Deals Major Blow to Hydropower Sector; Calls Grow for Targeted Relief
Summary
Rasuwa’s flash floods have damaged key hydropower plants and transmission infrastructure, cutting hundreds of megawatts off Nepal’s grid and rattling the stock market. Investors and energy producers are urging targeted relief measures including license extensions, concessional loans, tax exemptions and faster grid rehabilitation.
Key Points
- Catastrophic flash floods in the Bhotekoshi and Trishuli basins damaged transmission towers, substations and evacuation lines, disconnecting large amounts of power from the national grid.
- Five operating hydropower projects in Rasuwa and downstream Nuwakot were hit, including the 111 MW Rasuwagadhi project and the 22 MW Chilime project.
- Investors and energy producers are calling for relief measures such as extending generation licenses up to 50 years, concessional financing and VAT/customs exemptions.
- The article urges fast-track rehabilitation of grid infrastructure to restore investor confidence and stabilize Nepal’s energy sector and NEPSE.
