Indian public and private companies currently hold ownership stakes in hydropower projects totaling nearly 5,000 MW in Nepal, though most have yet to advance to the construction phase. The Nepal government had allocated large-scale projects to Indian firms to attract foreign investment, but progress has remained limited. Apart from the 900 MW Arun-3 project, major ventures such as West Seti (750 MW), Seti River-6 (450 MW), Phukot Karnali (480 MW) and Upper Karnali (900 MW) remain stalled. Legal complexities, procedural delays and financial constraints in Nepal have discouraged investment, leaving many projects inactive despite long-standing ownership agreements.
