Construction has begun on a 75 MW hydropower plant at Kalleri in Dhading district.

According to developer Siddha Kali Power, an 8-km-long tunnel will be dug from Ratamate in Nuwakot district to Kalleri in Dhading.

Once the power plant comes online, it will play a crucial role in eradicating power outages in the Kathmandu Valley, said Guru Prasad Neupane, president of the project.

“The energy generated by the project will help to industrialise parts of Dhading and Nuwakot,” Neupane said.

Siddha Kali Power has so far built four projects with a capacity of 15MW each. It has hired a Bangalore-based firm as consultant to the project. 

According to Neupane, the company will sign a power purchase agreement (PPA) with the government and then initiate the construction process on the ground. The project is estimated to cost Rs15 billion and is expected to be completed in four years.

A consortium of 11 banks led by Laxmi Bank has financed the project. They have provided 70 percent of the funding and shareholders will put up the rest.

The energy power generated by the project will be evacuated to Kathmandu using the Marshyangdi-Kathmandu 220 kV transmission line.

According to Neupane, the project will provide jobs to locals of seven village development committees (VDC) impacted by the scheme. The project has bought 22 ropanis of land in Dhading and Nuwakot and taken out a lease on 400 ropanis for the construction of the plant.