May 26, 2017-
The newly incorporated Electricity Generation Company has applied for licences to undertake surveys for four hydropower projects with the Department of Electricity Development (DoED), and is preparing to file applications for four more schemes.
The state-owned generation company seeks to conduct surveys for the 440 MW Bheri-1, 400 MW Lower Arun, 75 MW Jagadulla Khola and 434 MW Kimanthanka Arun hydropower projects.
“We have identified four more projects, and we are currently completing the necessary documents to file applications for them,” said CEO Mohan Pant of Electricity Generation Company.
The Energy Ministry has decided to award around 19 projects in the government’s basket to Electricity Generation Company, and it has informed the DoED about its intention. “We will gradually identify the projects and apply for licences with the DoED,” said Pant. The DoED said it would be examining the applications submitted by Electricity Generation Company within a couple of days. The company will be given 35 days to present any missing paperwork.
After the DoED is satisfied with the applications, it will forward the paperwork for projects with an installed capacity of more than 100 MW to the Energy Ministry for final approval. The DoED will award the survey licences following the ministry’s green signal. Electricity Generation Company will have two years to complete the survey.
“It will take a maximum of two months to complete the process and award the licences to the company,” said Nabin Raj Singh, director general of the DoED. “If all the documents are in order, the process will be completed within a couple of weeks.”
Electricity Generation Company was established under the Company Act 2006. The company will issue 17 percent of the shares to the general public. The Energy Ministry and the Nepal Electricity Authority (NEA) hold 20 percent and 10 percent of the stock respectively.
Likewise, the Finance and Law ministries own 5 percent of the shares each, while the Employees’ Provident Fund and Nepal Telecom have a 10 percent stake each.
Citizen Investment Trust, Hydroelectricity Investment and Development Company and Rastriya Beema Sansthan own 5 percent, 4 percent and 2 percent of the shares respectively. The company will offer 10 percent of the shares to locals affected by its hydropower projects, and 2 percent will be allotted to the extremely poor. The company has a paid-up capital of Rs300 million and an authorised capital of Rs20 billion.
Source: The Kathmandu Post
