DHANGADHI: Energy, Water Resources, and Irrigation Minister Deepak Khadka has said that preparatory work is ongoing to advance the long-delayed Pancheshwar Multipurpose Project in a way that benefits both Nepal and India.

Speaking at a press conference organized by the Press Union in Dhangadhi on Tuesday, Khadka revealed that the ministry is working on groundwork for a significant agreement on the project during Prime Minister KP Sharma Oli’s upcoming visit to India, scheduled for September 16.

Khadka emphasized that unresolved issues related to the project will be addressed through bilateral discussions during the PM’s visit.

He also noted that while Nepal has significant potential in the energy sector, key projects like West Seti have stalled for years due to resource constraints, legal hurdles, and financial challenges.

Nepal and India signed the Mahakali Treaty on February 12, 1996, covering joint development of the Sarada, Tanakpur, and Pancheshwar projects on the Mahakali River.

India had identified the Pancheshwar dam site in 1956, with initial studies in 1971 estimating 1,000 MW capacity. A revised 1991 design raised this to 6,480 MW. Nepal completed its detailed report in 1995.

The project aims to generate 6,650 MW from Pancheshwar and 250 MW from Rupaligad, along with irrigation benefits for Kanchanpur and parts of India.