Darna MHP is located at Bannigadhi Rural Municipality of the Achham district. The majority of people in Darna are Brahmin, Chhetri and Dalit. Most of the people rely on agriculture for their livelihood. However, some people go to India or Gulf countries for foreign employment. There are also few people in the civil service. The major crops in the area are rice, wheat, maize and millet. The nearest major market is Jayagadh Bazar which is 3 hours walking distance from the Darna area.
Darna MHP was constructed with great effort, enthusiasm, community support and joint commitment but soon after its establishment, it could not financially withstand and sustain its operation due to the lack of proper management as acknowledged by founder-chairman Mr. Bhim Bahadur Thapa. The installed capacity of this MHP was 83 kW, however, 93 kW of energy was generated from which the peak load consumption was hardly 39 kW. The generated output could not be consumed and utilized in a commercial manner because of which the economic status of Darna MHP was weak. A discussion was carried out concerning the utilization of surplus energy and to introduce the scope of commercialization where a matter was raised regarding the possibility in consumption of surplus power in nearby Kalagaun. On top of that, the representatives of Kalagaun were also interested in purchasing electricity from Darna. Hence, after a series of negotiations, it was decided that Darna MHP would sell 25kW electricity to Kalagaun. An agreement was signed between two parties indicating that the extension would be completed within a year and Kalagaun would have to pay a sum of NPR 2,800,000.00 to Darna management committee. The agreement also stated that after installation, Darna MHP would charge as wholesale NPR 4 per unit usage of electricity from Kalagaun. Although the project was supposed to be completed within a year, it took 2 years to finalize the extension process at Kalagaun.
With the funding support from AEPC, UNDP/RERL, RewNet Consultant team has been providing technical support to Darna MHP continuously in order to improve its management committee and quality of services. Previously before intervention from RewNet, Darna MHP was quite unorganized and the operation was unmanaged. The financial and public audit was not carried out since a long period of time, household energy meters were not installed in HHs and tariff was collected on a flat basis i.e. NPR 50 per month. Moreover, the revenue collection was not the regular and very low amount of revenue was collected back then. There was no proper account description and justification of revenue collection, savings and expenses altogether. With no proper office space, the documents such as register, bill vouchers etc. were totally unorganized and were endorsed in hand-carry baggage. But after the post-installation support activities through social mobilization process and institutional strengthening to uplift the standards of management, Darna MHP soon has become an exceptionally successful MHP and has set an example of most successful operation to other MHPs as well.
On account of the post-installation period during social mobilization process, different milestones were achieved such as financial and public auditing, registration of MHP as a cooperative institution, installation of energy meters at HHs, upgrading tariff rates in scientific format etc. After being registered as a cooperative institution, Darna MHP was settled down in a separate office space with a proper well-equipped setup. A manager has been appointed by the committee to handle out the office-related tasks. For better organization and less error, computerized accounting has been adopted by Darna MHP. Darna MHP has implemented a policy where all those connected HHs are a shareholder in the cooperative. Regular revenue collection with improved tariff rates is being applied and provision for discount and penalty has already been implemented. Presently, through savings and credit mechanism the overall revenue increment strategy has already begun.
The office premises have the facilities of a complaint box and notice boards for better service circulation. Darna MHP has proved that to achieve better employment opportunities and smooth administration, better capacitive building activities for staffs and personnel handling through various services like life insurance, provident funds, regular uniform and communication services can be adopted by MHPs.
