Hetauda Diesel Power Plant, with installed capacity of 14.41 MW is located at Hetauda, Makawanpur. The first phase with three sets of English Units was commissioned in 1963 and the second phase with four sets of Russian Units was commissioned in 1980 in assistance from British Government and Government of Nepal. The World Bank under PDP has assisted in procurement of spare parts from Man Diesel, UK for replacement of worn out parts. The plant operates during peak, however, the soaring fuel price has made its operation costlier compared to that of hydropower stations. The plant contributes to generation mix and provides operational flexibility and strengthens system reliability and hence, has great importance in minimizing load shedding hours to some extent. However, the exorbitant fuel price restricts its operation and NEA has to receive some sort of subsidy from GON as compensation for its operation. Presently, the plant has been operating at capacity of 10 MW for minimum of 10 hours a day.