Nepal's mountainous terrain and abundant rivers provide immense potential for hydropower generation, offering a renewable and sustainable energy source for the country's growing energy demands. Recognizing the importance of ensuring inclusive growth and equitable distribution of benefits, the Nepalese government has adopted a benefit sharing approach in hydropower projects. This strategy aims to harness the potential of hydropower to uplift communities and catalyze socioeconomic development. The benefit sharing strategy encompasses various components, including revenue sharing, infrastructure development, employment generation, and social and environmental safeguards.

Through revenue sharing mechanisms, local communities and the government receive a percentage of the project's profits, contributing to local economic growth and infrastructure development in remote regions. Moreover, hydropower projects generate employment opportunities, both directly and indirectly, through construction, operation, and maintenance phases, empowering local communities and reducing unemployment rates.In conclusion, the benefit sharing strategy in hydropower projects in Nepal has the potential to bring about significant socioeconomic transformation.

By effectively implementing this strategy, Nepal can harness the benefits of its abundant water resources to drive inclusive growth, reduce poverty, and uplift communities. However, overcoming challenges and fostering strong partnerships among stakeholders is essential to realize the full potential of hydropower as a catalyst for sustainable development in Nepal.