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Nepal needs ₹4.52 lakh crore for reconstruction, country's GDP is less than this, 5130 people still missing
Sandy Verma | September 11, 2026 7:25 PM CST

Digital Desk, Busted. The devastating flood that occurred in Nepal on August 26 has caused such damage that now the country faces a big challenge to rebuild the affected areas. According to the government's initial assessment, approximately 7.23 lakh crore Nepali rupees i.e. approximately ₹4.52 lakh crore will be required for the restoration of flood damaged structures and affected areas.

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To understand the scale of the loss, it can be seen by linking it to the economy of Nepal. Nepal's annual nominal GDP is around ₹4 lakh crore. That is, the estimated expenditure on reconstruction after the flood is equal to or even more than the entire GDP of the country for one year.

The flood caused massive destruction in many areas including Rasuwa, Nuwakot and Dhading. People's homes and agricultural land were affected, while roads, bridges, power projects, businesses, dry ports and even vehicles parked in border areas were hit by the floods. So far, 1,377 people have died in the disaster and 5,130 people are missing. About 16 lakh people have been affected by the flood.

Huge damage to electricity and transportation system

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Technical teams from several government agencies, including the National Planning Commission and the National Disaster Risk Reduction and Management Authority, have made a preliminary assessment of the damage. According to the report, around ₹ 2.52 lakh crore may be spent in rebuilding the infrastructure.

The energy sector has suffered the biggest blow. Thirteen hydropower projects with a capacity of 759 MW and five solar plants with a capacity of 24 MW have been affected. About ₹2.44 lakh crore is said to be required for the restoration of electricity and grid system.

Roads and bridges have also been badly damaged in the floods. About 69 kilometers of roads were affected, 33 motorable bridges were washed away and four bridges were partially damaged. And out of 64 suspension bridges, 53 have been damaged. About ₹45,839 crore will be required to remodel the transport infrastructure.

7,570 houses damaged, 4,800 businesses affected

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7,570 private houses in Rasuwa, Nuwakot, Dhading, Gorkha and Chitwan have been affected by the floods. Apart from this, 48 ​​government buildings, 18 schools, seven health institutions and 30 cultural heritage sites have also been damaged. An estimate of Rs 64,719 crore has been made for their restoration.

In Nuwakot's Vidur municipal area alone, 3,026 houses are reported to have been damaged. Agriculture and business have also suffered a big blow. About 1,806 hectares of crop area, 17 bank branches and 4,800 business establishments have been affected. About ₹31,734 crore will be required to bring these sectors back on track.

About ₹59,218 crore on river management

It is estimated that about ₹59,218 crore will be spent on future flood damage reduction and river management. At the same time, about ₹ 3.2 crore has been said to be required for the management of mud and debris.

The government has divided the reconstruction into two phases. It is estimated that around ₹54,594 crore will be spent on immediate relief and initial reconstruction in the next six months. After this, about ₹4.47 lakh crore will be required for long-term reconstruction.

Detailed report will come in three months

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The National Planning Commission has now started the process of Post-Disaster Needs Assessment i.e. PDNA. Under this, a detailed study of the damage caused by the flood will be done and the resources required for reconstruction will be re-assessed. According to Commission spokesperson Harisharan Pudasaini, a detailed report is expected to be ready in about three months. At present, preparations are being made to collect data from the affected areas and conduct a field survey.

Sushil Kumar Shrestha, senior divisional engineer of the National Disaster Risk Reduction and Management Authority, said that a preliminary report has been prepared on the basis of data received from different ministries, departments and local bodies. The picture of damage and reconstruction will become clearer after detailed PDNA.


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