for generation, transmission and distribution of electric power brought the revolution inhydropower development. Many potential sites for hydropower generation had identifiedby private consultancies and companies in collaboration with NEA.Prior to 1960, all the hydropower stations were constructed through grant aid fromfriendly countries like the USSR (Panauti), India (Trishuli, Devighat, Gandak, Surajpura-Koshi) and China (Sunkoshi). Since 1970, hydropower development took a new turn withthe availability of bilateral and multilateral funding sources. The major donor countries inthe period were Japan, Germany, Norway, South Korea, Canada, Finland, Denmark,Sweden and USA. The financial lending agencies were the World Bank, ADB, JBIC,Saudi Fund for Development, Kuwait Fund and others.From 1990s, subsequent to the adoption of the policy of economic liberalization,hydropower development took yet another turn with the private sector entering the arena.After formulating Hydropower Development Policy
1992 by government of Nepal,many private sectors are involving towards power development. In order to encompassprojects of various scales intended for domestic consumption as well as to exporthydropower, the former policy was replaced by the Hydropower Development Policy2001 to provide further movement to active participation of private sectors.Development of hydropower in Nepal is a very complex task as it faces numerouschallenges and obstacles. Some of the factors attributed to the low level of hydropowerdevelopment are lack of capital, high cost of technology, political instability, and lowerload factors due to lower level of productive end-use of electricity and high technical andnon technical losses.
Legends for the Power Development in Nepal
Table 1.1 Major Hydropower Plants
Name Capacity(MW) Name Capacity (MW)
Trishuli 24.00 Gandak 15.00Sunkoshi 10.05 Devighat 14.10Kulekhani 1 60.00 Khulekhani 2 32.00