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It is imperative to promote rural electrification, for overall development, in the under-developed countries like Nepal especially in hilly and mountainous regions. In the absence of national grid, in these areas, the concept of mini-grid becomes more plausible to realize. However, the abundance of hydropower potential in such region could be utilized if the Mini-Grid Power System (MGPS) is operated based on small-scale hydropower plants. This paper deals with prospect of small-scale hydropower plants based MGPS through three-tire strategy that makes possible Village Development Committee (VDC) to be electrified first and latter that could be interconnected with District Development Committee (DDC) and regional level transmission lines.