UPPER KARNALI POWER PROJECT (Syllabus: GS Paper 2 – IR)

Context: The Indian Renewable Energy Development Agency Limited (IREDA) will invest in the Upper Karnali Hydro-Electric Power Project, enhancing India's renewable energy portfolio.

Upper Karnali Hydro-Electric Power Project

• About: It is a 900 MW run-of-the-river hydropower project being developed on the Karnali River in Nepal.
• Power Distribution: The project will supply power to Nepal, India, and Bangladesh for a contracted period of 25 years.
• Project Award and Developer: The Government of Nepal awarded the project to GMR Upper Karnali Hydro Power Limited (GUKHL), a subsidiary of GMR Group India, under a memorandum of understanding (MoU) signed in January 2008.
• Development Model: GMR is developing the project on a build-own-operate-transfer (BOOT) basis.
• Equity and Agreement Terms: The Nepal Government received 27% free equity in the project as part of the MoU with GMR.
• Environmental Impact: It is estimated to generate 3,466 million units of electricity, while offsetting approximately two million tons of greenhouse gas emissions a year.

Karnali River

• About: It is a perennial trans-boundary river originating in the Himalaya Mountains on the Nepal side of the Tibet border across from holy Mt. Kailash.
• Length and Basin: It is the longest and largest river in Nepal, at 315 miles. More than 90% of the basin lies in Nepal.
• Course and Confluence: It cuts through the Himalayas in Nepal and joins the Sharda River at Brahmaghat in India.
• Formation of Ghaghara River: Together, they form the Ghaghara River, a major left bank tributary of the Ganges.