Over NPR 15 billion investment secured for 60 MW Marsyangdi Hydropower Project

KATHMANDU, MAY 15: A consortium led by Kumari Bank is set to invest NPR 15.18 billion in a semi-reservoir-based hydropower project on the Marsyangdi River with a capacity of 60 megawatts.

The project will be developed by M.A. Power Pvt. Ltd. on the Marsyangdi River, which flows through Palungtar Municipality of Gorkha District, Rainas Municipality of Lamjung District, and Bhanu Municipality of Tanahun District. The investment agreement was signed on May 13, 2025.

The agreement was concluded in the presence of Anup Acharya, Chairman of M.A. Power Pvt. Ltd., and Kshitij Khadka, Chief Business Officer of Kumari Bank Ltd.

Apart from the lead investor-Kumari, the consortium includes Prabhu Bank, Siddhartha Bank, Agricultural Development Bank, Sanima Bank, Employees Provident Fund, Garima Bikas Bank, Lumbini Bikas Bank, and Shangrila Development Bank. Together, they will provide a combined investment of NPR 15.18 billion in the project through a loan arrangement.

The equity investments will come from Anup Acharya, Haribabu Nyaupane, and Dipak Baral. According to the company chairman, the Dolma Impact Fund is expected to hold up to 49% of the company’s founding shares. The same group is also in the final stages of constructing the 22 MW Setikhola Hydropower Project through Setikhola Hydropower Ltd.

The project signed a Power Purchase Agreement (PPA) with the Nepal Electricity Authority on October 18, 2023, and is scheduled to begin commercial operation on May 4, 2029.

According to the company chairman, the Environmental Impact Assessment (EIA) report is in its final stage of approval by the relevant authorities. The electricity generated from the project will be transmitted via an 11.6-kilometre, 220 kV single-circuit transmission line to the Nepal Electricity Authority’s Markichowk substation, where it will be connected at a voltage of 220/132 kV.