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The Fourth South Asian Regional Conference

Introduction
Nepal has enormous hydropower potential which is untapped. The Northern boarder of the country is covered by snowy mountains which is perennial source of water. The high gradient of rivers provides the potentiality of generating hydroelectricity power. By the end of 2007 electricity generation capacity of the country has reached 612MW which is less then one percent of the total potentiality. The vast hydropower potentiality of Nepal can be exported to India and China .
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Opportunities
There are business opportunities in the hydropower sector to Non-residential Nepali (NRN) Foreign investors as well. Some of the major benefits for investors include:

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Easy availability of non-immigrant visa.
- Repatriation of investment income in foreign currency.
- Low tax for income from investment in hydropower projects.
- Cheap and abundant supply of skilled manpower resulting to lower the cost of projects.
  Contribution to social development of an underdeveloped country.
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Message
Dear Friends, Nepal has immense hydropower generation potential that remains virtually untapped. Arun Valley Hydropower Development Company (AVHDC) has a mission to develop, build and operate hydropower projects. You can also take advantage of this growing industry in Nepal by becoming an INVESTOR.
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Projects
Arun Valley Hydropower Development Company has constructed and operating Piluwa Khola Small Hydropower Project at Sankhuwasava District in Koshi Zone. This is a Run of River type project located on the Piluwa Khola, a tributary of Arun River. It has an installed capacity of 3MW and generates 19.55GWh energy per annum. The power purchase agreement with Nepal Electricity Authority (NEA) was completed in 2000. The construction of this project was started in March 2000 and completed in August 2003. The plant started commercial operation from 18 September 2003. The energy generated from this project has been sold to NEA at a cheaper price. The project has helped to minimize the transmission losses and improve the voltage in the system.
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