The Darkhola II micro hydropower project at Dhaulagiri Rural Municipality-2, Myagdi district has been swept away by the flood, disconnecting power to the villages.
As a result, property relating to the project is worth over Rs 15 million, said the rural municipality chair Thamasara Pun.
The project was constructed two years ago at a cost of Rs 25 million. As many as 378 houses at Lulang, Khoriya, Merani, and Lamsung villages had been availing electricity from the project.
Flooding caused by rain on Sunday night washed away a powerhouse building, he said, adding that dams and canals constructed for the project were also damaged in the disaster.
Without electricity, local people have faced difficulties, said Nagendra Thakur, headteacher of the Lulang Basic School.
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