India to help reconstruct hydro power plant in Nepal's Chandannath municipality

India and Nepal have signed a Memorandum of Understanding (MoU) this week under which New Delhi will provide financial assistance for reconstruction and renovation of a hydro power plant at Chandannath municipality in Jumla District.

The MoU was inked by Gyanveer Singh, Second Secretary in the Embassy of India, Kathmandu, Rajesh Poudel, Local Development Officer, Jumla and Bishnu Bahadur Budthapa, Chairman, User Committee Chandannath Municipality in presence of Member of Parliament Lalit Jung Shahi.

The project would be funded by the Government of India to the tune of NRs 26.37 million under its Small Development Programme Scheme as part of India-Nepal Economic Cooperation Programme.

The hydro power plant in Chandannath was built in 1983 by Nepal Electricity Authority. It suffered damage during the insurgency period and was operating at sub-optimal capacity resulting in frequent power cuts and electricity problems in the municipality. At the request of the user committee of the small hydropower plant the Government of India is supporting reconstruction and renovation of the power-plant benefitting more than 20,000 people of the municipality.

This is Government of India's second project in this remote district. The Government of India had earlier supported the construction of the Chandannath Higher Secondary School with a total financial assistance of NRs 24.90 Million. Apart from this, in the past, three ambulances have also been gifted to different health organizations in the district.

India has extended financial assistance of approx. NRs 500 million towards renovation, restoration, upgradation of various sites of religious, educational, cultural and historical importance in Nepal in financial year 2015-2016. India-Nepal Economic Cooperation Programme has an outlay of over NRs 76 billion.

Under this programme, Government of India has completed or pursuing more than 533 projects in almost all districts of Nepal. These development projects, executed in partnership with Government of Nepal, are mainly in sectors like education, health, infrastructure that have been undertaken in response to local needs.