The Investment Board of Nepal on Monday gave the nod to India’s state-owned NHPC Limited to study and develop 1,200MW hydropower projects in western Nepal.

The projects include 750MW West Seti Hydropower Project and 450MW Seti River (SR-6), a joint storage project.

The 52nd board meeting of the Investment Board, chaired by Prime Minister Sher Bahadur Deuba, took a decision to this effect, according to the Investment Board Nepal.

The board approved the draft of the memorandum of understanding to be signed with the Indian company, according to the statement of the board.

The NHPC Limited, an Indian government hydropower board under India’s Ministry of Power, had submitted a proposal in May to develop the project.

The West Seti project first envisioned some six decades ago is located on the Seti River in the far west of Nepal. The proposed dam site is located 82 kilometres upstream of the confluence of the Seti and Karnali rivers, forming part of the Ganges basin.

The project sites are located at elevations ranging from 550 to 920 metres and are spread across six districts.

The estimated cost of the project, according to the Investment Board, is $2.4 billion.

Multiple officials had confirmed to the Post in May that the Investment Board had received a formal proposal from the NHPC Limited, formerly known as National Hydroelectric Power Corporation, for the development of the project.