GOVERNMENT INTRODUCES INNOVATIVE DEVELOPMENT FINANCING MECHANISM
The government has introduced an innovative development financing mechanism by levying infrastructure tax of five rupees on imports of every litre of petrol, diesel and aviation fuel to raise funds to build 1,200-megawatt storage-type Budhi Gandaki Hydroelectric Project.
This decision, which came into effect from Saturday, will make fuel a tad expensive, but will help the country to mobilise resources to build a crucial hydro project that can significantly reduce load-shedding hours in the country.
“This mechanism will help the government raise over Rs seven billion in the next fiscal year,” Finance Minister Bishnu Prasad Paudel said launching the annual budget for the financial year 2016-17.
The government has also earmarked an additional Rs 5.3 billion to begin construction of the hydroelectric project in the next fiscal.
The government is mulling over reducing load-shedding hours drastically in the next fiscal and make power cuts a history in the next two years.
“Also, hydroelectricity generation, transmission and distribution projects will be designed to make the country self-dependent in electricity generation during monsoon in the next three years and export electricity in the next 10 years,” said Paudel.
In this regard, the government plans to build run-of-the-river hydro projects with installed capacity of 6,000 MW and storage projects with installed capacity of 4,000 MW in the next 10 years.
“We’ll complete construction of Chameliya and Kulekhani-3 hydro projects within a year, Upper Tamakoshi and Upper Trishuli 3A projects in two years and Rasuwagadi project in three years,” said the minister.
“Attempts will also be made to develop over 10,000 MW Karnali-Chisapani Multipurpose Project as a joint project between Nepal, India and China.”
To evacuate power generated by these projects, the government has allocated budget for construction of 400 kV Dhalkebar-Kathmandu-Hetauda and 400 kV Hetauda-Dhalkebar-Inaruwa transmission line projects.
“Also, priority will be given to construction of Mechi-Mahakali transmission line project and Karnali, Gandaki and Koshi transmission corridors,” the minister said. “We will also ensure timely completion of Marshyangdi-Kathmandu, Samudratar-Trishuli, Kathmandu-Birgunj-Simara transmission line projects.”
The government also intends to bring the National Transmission Grid Company into operation from the beginning of the next fiscal year. It is also mulling over establishing National Hydroelectricity Generation Company and National Power Trade Company in the next fiscal.
“A different mechanism will also be created to provide consultancy service on hydroelectric projects, transmission lines, designs of transmission line system and project supervision,” the minister said.
Source : The Himalayan Times