Socio-Economic Impact of Micro-Hydro Power Project (A Case Study of Modi Khola Hydropower Projecton Deupur VDC, Prabat District)

Abstract

The role of hydro power in economic development in the context of least developed country like Nepal can never be underestimated. The electricity generated from the hydro power plant is not only essential for industrial growth but is equally inevitable for human being. The main objective of the study is to evaluate the impact of the micro hydro power projects (MHPs) in rural development on socio-economic aspects through income and employmentgeneration, health and sanitation, education and information technology and suggest solution for sustainable development of MHPs. The present study has attempted to bring these aspects of the small hydro power projects into the limelight through the study of socio-economic impact of Modhi khola Hydro power Project in the overall sector of the study area. The construction of project was started from the year 1996 with the eco-financingof His Majesty's Government of Nepal and Nepal Electricity Authority. The Government of Republic of Korea has provided a loan assistance to cover part of the technical support, electro mechanical works and 132 kV transmission line constructions. The study has employed both primary and secondary sources for data collection. Under the primary source, the study has been based onquestionnaire, interview and direct observation of the project site and affected areas. Likewise, different reports and official publications regarding hydro power plants have been taken into consideration for the statistical data. The study found mixed socio-economic impact of the project on the project affected areas. Out of 48.08% population are still dependent on agriculture forlivelihood. The study further finds out that the population has not completely substituting electricity for firewood. After the installation of MHP 27 small industries were installed in study where around 55 villagers have partially/fully x involved in job. In the study area 76.92% student's performance at school is improved after MHP installation because children have been studying at the night time using electricity. People are suffering from asthma, bronchitis, eye infection and heart diseases due to indoor air pollution. Hydroelectricity has a prominent role in reduce indoor air pollution by decreasing the use of fire wood and kerosene. Electricity from a micro hydro plant makes it possible to use over head projectors, computers, TV, radio, refrigerator, washing machine,chargeable battery, mobile and internet. This increases the living standard of the people in the study area. To sum up, installation of small hydro power projects like Modhi khola hydro power is significant from several angles like, to fulfill national demand for electricity, protect environment, uplift living standard of rural people.