INTRODUCTION
1.1 Background Hydropower has been recognized as a sustainable source of energy with almost zero input cost. Its benefits are that it is none polluting in the sense that it releases no heat or noxious gases it has low operating and maintenance cost, its technology offer reliable and flexible operation and hydropower stations have increased efficiencies along with long life. Nepal’s huge potential in hydropower is still untapped. Though Nepal has not yet been able to tap even one percent of its potential electricity capacity and 60 % of Nepal’s population is still deprived of electricity. It is fascinating to note that Nepal’s start in 1911 in the hydropower generation almost dates back to a century. As a cheap renewable source of energy with negligible environments impacts, small hydropower has an important role to play in Nepal’s future energy supply. Accordingly, micro-hydro system is becoming increasingly popular as an energy source in rural Nepal. Use of environmental friendly technologies and implementation of sound legal and institutional issues are critical to improve the reach of the population to hydropower. To make plan targets in the power sector a reality directly more resources to the power projects focusing on rural population remains the pre-requisite. The major strategies of the power sector have been appropriately identified as promoting rural electrification with rural economic development programs and strengthening power infrastructure. The immense role of the power sector in contributing to the generation of broad based sustainable and high level of economic both on a regional and global basis makes if imperative that the programs and activities on power sector development as visualized in the plans and policies be given the utmost urgency priority and focus.
Nepal land is blessed with enormous amount of Water, sources of which comes from the mighty Himalayan Range. Hydropower is the major source of