GMR Energy has signed a Joint Development Agreement (JDA) with the International Finance Corporation (IFC), the private sector lending arm of the World Bank, to jointly develop the Upper Marsyangdi-II hydropower project of 600 MW in Nepal.

The hydropower project is located on the Marsyangdi river, in the Manang and Lamjung districts of Nepal. Himtal Hydro Power Company, a subsidiary of GMR Energy, is undertaking the project.

The hydropower project is in an advanced stage of development. The total investment in the project is estimated at $ one billion (approx Rs 6,224 crore) and is expected to be commissioned by FY 2021.

The government of Nepal has identified the proposed Upper Marsyangdi-II as one of the National Priority Projects and the Investment Board of Nepal (IBN) is assisting it. The Upper Marsyangdi-II hydropower project has completed all survey and investigation works, finalised the feasibility studies and has already received a majority of clearances from the government of Nepal.