The construction of Nilgiri Khola-2 'Cascade' hydropower project with a capacity of 71 MW has been completed in Narchang, Annapurna Rural Municipality-4 of Myagdi. The Nilgiri Khola Cascade is the largest hydropower project constructed in Myagdi so far.

Upendraraj Gautam, the representative of Nilgirikhola Hydro Power Company Limited, the promoter company of the project, said that they are going to start testing by pouring water into the tunnel of the completed project. "During the delivery of water to the tunnel, the flow of river water from Chotepa to Dovilna will decrease, so we have requested not to fish, bathe, leave cattle, quadrupeds and travel," he said.

After the construction of the dam, tunnel, power house, transmission line, switchyard, the test has been prepared in coordination with the Nepal Electricity Authority in Rohwar. The descender (sand settling pond) constructed in Chotepa was already tested by pouring water. A 4,275 meter long tunnel has been constructed from Chotepa to the power house in Dovilna.

According to the project, the construction of Humkhola Dam and Chotepa Power House on the Nilgiri First has reached its final stage. After the construction of the building of the power house, the installation of the equipment has started. About 80 percent physical progress of Niligiri-1 has been achieved. A switchyard has been built in the power house premises of both the projects. The switchyard of Nilgiri-1 was damaged by a landslide last winter.

Both the projects estimated to cost 13 billion rupees are run-of-river in nature. The electricity generated from Niligiri Khola is connected to the central grid through a 220 KV capacity Dana substation. A transmission line of 220 kV capacity of 7.4 km distance connecting Dana substation through Chotepa-Dobilna has been constructed.