The West Seti Hydroelectric Project is a major storage project being developed by West Seti Hydro Limited (WSH) on the Seti River in the Far Western Development Region of Nepal.

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The project is being developed under a Build Own Operate Transfer (BOOT) structure with a 30 year concession.
The 30-year generating license incorporates the construction period (5.5 years) before full ownership of the project is handed over to the Government of Nepal.
The principal project features are:
- A power station consisting of 4 x 187.5 MW individual turbines at rated net head
- 195 m high Concrete Faced Rock-fill Dam on the Seti River
- Two diversion tunnels – each 675 m long
- 6.7 km of 10 m diameter headrace tunnel
- Underground machine hall 283 m below reservoir full supply level
- 605 m tailrace tunnel
- 25 km long reservoir with a catchment area of 4,250 km2 and storage capacity of 1,566 million m3 (926 million m3 live storage and 640 million m3 dead storage)
- Average water inflow of 199 m3/s
- Power delivery to the Indian high voltage grid via a 132.5 km 400 kV double circuit transmission line to the Nepal-India border
- Estimated average annual generation of 3,636 GWh of delivered energy
One of the few major development options available to Nepal is hydropower.
The country’s potential hydropower resource is estimated to be 83,000 MW, of which 43,000 MW is considered economically viable. Nepal’s current total installed generating capacity is only 617.48 MW, of which 55.03 MW is thermal.
The topography of the West Seti site is ideally suited to hydropower generation as a high dam can be constructed across a narrow section of the Seti valley to create a large upstream storage reservoir, allowing flow diversion across a bend in the river that creates additional generation capacity.
Computer simulations using river flow measurements over 30 years and catchment rainfall analysis over 80 years, have determined the Seti River’s suitability for a major hydropower project.
The Seti River has a pronounced seasonal flow pattern, with high flows during the monsoon season from mid-June to September and low flows generally occurring over the remaining months. River flows between May and October account for 86% of the total annual flow.
The project will generate an estimated average annual energy output of 3,636 GWh.
Daily generation will occur for up to 8 hours during the dry season and up to 24 hours during the monsoon.
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Electricity to India India suffers chronic electricity shortages. In 2006-07, India had a peak power deficit of 13.5% and a power supply deficit of 9.9%.
In India’s northern region, adjoining Nepal, these deficits were 11.3% and 10.9% respectively in 2006-07 and are predicted to increase.
Under the terms of the 1997 Project and Export Agreements with the Government of Nepal, and the 2003 Power Purchase Agreement, Power Trading Corporation (India) Ltd (PTC) will purchase energy from WSH for distribution within the northern region of India.
Smaller amounts of energy will be available from a riparian release power station at the dam site for sale to the Nepal Electricity Authority to service the local communities in the project area, many of which do not have current access to reliable power.
Ten percent free energy will be provided to the Government of Nepal from the project itself.
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Environmental Monitoring
The West Seti project has been subject to rigorous international and independent analysis and review, conducted to the highest international standards.
Almost US$150 million – about 13% of the project cost – has been earmarked for environmental and social mitigation and improvement measures.
A detailed Environmental Impact Assessment (EIA), prepared over three years (1997-1999) and consisting of seven volumes, was completed in accordance with Nepalese government requirements and carried out by SMEC with the assistance of local and international specialists.
The EIA, which included an Environmental Management Action Plan and a Resettlement Action Plan, was approved in 2000 by Nepal’s Ministry of Population and Environment.
In 2007, this EIA was reviewed and updated and an additional EIA was completed for the project’s 132.5 km transmission line to the Indian border along with three other socio-economic surveys involving Community Development, Cumulative Impact and Disaster Management.
A further Environmental Assessment Update Report was prepared by West Seti Hydro Ltd for the Asian Development Bank in June 2007.
West Seti Hydro Ltd will commission an Independent Monitoring Contractor to oversee implementation of the key environmental measures and safeguards it has incorporated into all project sites.
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Environmental Impact
Land Use
An estimated 2,322 ha of land will be acquired for permanent project features and 678 ha for the transmission line. This includes:
- 659 ha of cultivated land
- 1,202 ha of forest
- 246 ha of grassland
- 206 ha of shrubland
The total land area permanently required by the project has been minimised by:
- limiting the number and length of project roads
- locating the power station underground
- minimising the size of permanent sites
Lower value production land will be used where options exist and land degradation will be minimised by:
- locating temporary facilities on permanent project sites
- stockpiling topsoil and re-using it for site rehabilitation
- strictly controlling potential pollution
- minimising vegetation clearance by using helicopters to string transmission lines
- restricting road clearing to minimum width
Flora and Fauna
A propagation and planting program will be undertaken for species of conservation significance that will be cleared from (or inundated on) project sites. After construction, project sites will be re-vegetated using locally propagated native species.
The forest and scrubland cleared along the transmission line will be converted to low growing shrubs, grasses and pruned trees. A small section of the line – less than 3 km – will cross the Shukhalaphata Wildlife Reserve. Although this area does not contain conservation significant habitat, it does serve as an occasional migratory route for wildlife, including the Asian elephant.
Bird numbers are likely to benefit from the creation of the reservoir, while migratory species are expected to use it as a resting place.
The dam will prevent migratory fish species from reaching upstream spawning grounds and so they will disappear from the upper Seti River. The reservoir will support various species, while cold water varieties could decline or disappear.
The Seti River between the dam and the tailrace will resemble a stream for 8-11 months of the year when spill flows do not occur, causing fish numbers to decline during this period. Flow fluctuations from power station discharges will also reduce fish numbers downstream of the tailrace outlet.
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Natural Hazards
The dam will reduce flooding due to the diversion of water through the power station.
The dam spillway has been designed to safely release the probable maximum flood flow, including surges caused by glacial melting and landslides.
The dam has been designed to withstand major earthquakes. Such an incident may cause substantial but repairable damage to the dam, but not total failure.
Resettlement and compensation
Almost $90 million has been earmarked for resettlement, compensation and community development initiatives.
Under the Project Resettlement Action Plan, approved by the Government of Nepal 1,383 households will require resettlement from the Hills to the fertile Terai plain in southern Nepal, with most of these coming from the reservoir area. A further 186 households in the transmission line right-of –way will also need relocation, generally to an adjacent site outside the right-of-way.
Replacement Cost
All private land losses will be compensated at full replacement cost.
Equal Productivity
Households in the reservoir area, which are resettled to sites in the Terai, will be provided with replacement land of equal productivity.
Extra Compensation
In addition, households will receive extra compensation to the value of 20% of their acquired land.
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Additional Land
If households resettle at project sites in the Terai on land that is equal to their old lots but less than Terai subsistence level, then they will be given additional land. It is estimated that 38% of people being resettled will enjoy this rise in living standards.
Additional Allowances
Affected residents will also receive:
- a resettlement/relocation allowance
- household and business displacement allowances
- cultivation disruption allowances for non-displaced households
- rehabilitation allowances for vulnerable households
- a rental stipend for tenant households
Only a few households in the transmission area will need to be resettled. Of the 224 ha of private agricultural and residential land within the transmission line, only 1.5 ha will be permanently acquired and settlement will be prohibited on just 4.7 ha.
Residential or business structures on titled land in the transmission line will be relocated, but the owners will retain title over the land and will be allowed to cultivate the land with only minor restrictions.
They too will be compensated at full replacement cost for the affected land, houses and structures.
Households downstream – between the dam and the re-regulation weir – will be affected to varying degrees by the permanent reduction in the flow of the Seti River as well as river level fluctuations as a result of discharges from the power station.
An estimated 9,000 people will have access to secure potable water by improvements to existing village-based systems as well as the construction of new facilities.
Villages will be electrified and a sanitation program will be introduced to improve public health.
Where fish stocks have diminished, the Action Plan promises a mitigation program to cover this economic cost and a nutrition program to ensure people are not adversely affected.
Footbridges and cable slides that are inundated by the reservoir will be replaced by six suspension bridges, improved walking tracks and boat access to the reservoir.
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Consultations
Since 1997, West Seti Hydro Ltd has pursued open and regular public consultation with affected people, Government ministries and departments, Non-Government Organisations and other interested parties.
Discussions with affected communities at the project site were initially conducted over a 21 month period (1997-1999). These included:
- formal and informal community meetings
- discussions with elected members of the Local Consultative Forum
- meetings with landholders, district officials and other stakeholders
- a three-day field trip of potential resettlement areas by community representatives
- two public hearings
- the publication and distribution of seven Information Sheets to affected communities
Consultation recommenced in 2006-07 in accordance with the transmission line Environment Impact Assessment (EIA) and these discussions also involved an update of the earlier EIA.
These consultations included:
- five community meetings in November 2006
- four community meetings in April 2007
- the publication and distribution of two Information Sheets to affected communities
A comprehensive, transparent system of checks and balances has been established by West Seti Hydro Ltd to facilitate the project’s resettlement, relocation and compensation issues.
Local Consultative Forums are the backbone of the consultative process, providing residents and villages with an open forum for information, support and the airing of grievances.
The Resettlement Steering Committee will include representatives from the district Government, members of the Village Development Committee, community groups and other interested stakeholders.
Affected communities will also be represented on the Compensation Determination Committees so that procedures are open to full public scrutiny and comply with Government legislation.
Finally, Grievance Redress Committees – whose membership overlaps some of the other committees – are entrusted to resolve disputes concerning resettlement, relocation and compensation.
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Project- Location

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Project- Local Topography
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