Allocations from the Indian government will help Nepal rehabilitate and upgrade a small hydroelectric plant in the remote Jumla district.
According to a release from the Indian embassy in Nepal, the country will provide its northern neighbor with about US$246,000 for the initiative as part of the India-Nepal Economic Cooperation Programme.
The embassy did not disclose the capacity of the facility, but said it was originally constructed near the town of Chandannath in the early 1980s by the Nepal Electricity Authority before being damaged during the Nepalese Civil War.
Repairing the project will help alleviate frequent power outages, the Indian embassy said, while also providing electricity to more than 20,000 people in the region.
Nepal's hydroelectric power sector has benefitted from a number of foreign investments in recent months. HydroWorld.com reported in February that the Asian Development bank had agreed to expand its annual lending to Nepal by 70%, while the World Bank Group also committed more than $22 million to help the country implement its Power Sector Reform and Sustainable Hydropower Project.
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