The subsidy for MHP projects/schemes is as follows:  

1.     A subsidy amount of NPR 8,000 per household will be provided for new MHP project up to 5 kW capacities. But the subsidy will not be more than NPR 65,000 per installed kW.

2.     A subsidy amount of NPR 10,000 per household will be provided for new MHP project from above 5 kW to 500 kW. But the subsidy will not be more than NPR 85,000 per installed kW.

3.     A subsidy amount of NPR 4,000 per household will be provided for to the add-on MHP project (Improved Water Mill), if it is for electrifying villages. But the subsidy will not be more than NPR 40,000 per installed kW.

4.     In respect of rehabilitation of MHP project of more than 5 kW capacities, a subsidy of NPR 10,000 will be provided per additional households if it is served by MHP as a result of rehabilitation But the subsidy will not be more than NPR 85,000 per incremental kW due to rehabilitation.

5.     An additional subsidy will also be provided for the transportation of equipment and materials of the MHP project. The transportation subsidy will be given based on distance from the nearest road head to project site. The MHP projects will be categorized for transport subsidy as shown below: Rehabilitation projects, as mentioned in 4, will receive 50 percent of transport subsidy specified below:

Category	Location of MHP projects	Subsidy in NRs. (Per KW installed capacity)
A	All projects in Karnali and adjoining specified districts* and projects that are located at the distance of more than 50 km walking distance from nearest road head	3000
B	Projects located at a distance of 25 km to 50 km walking distance from nearest road head.	1200
C	Project located at a distance of less than 25 km walking from nearest road head	No subsidy

*  Humla, Jumla, Kalikot, Dolpa, Mugu, Rolpa, Rukum, Jajarkot, Bajhang, Bajura, Achham, Dailekh, Darchula