Power Regulatory Body Commits to Granting 50-Year Extensions for Hydropower Project Licenses

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KATHMANDU, Feb 23: The director general (DG) of the Department of Electricity Development, Jeebachh Mandal, has said that because the Ministry of Finance (MoF) is complacent in terms of making economic rules and laws, the private sector as well as the government entities are facing repercussions.

In a meeting with the representatives of the Independent Power Producers’ Association, Nepal (IPPAN), the Director General Mandal said that “the private sector has been the victim of the MoF’s failure to consult with the stakeholders.” He said that the Nepal Electricity Authority also suffered as a consequence of this complacency.

Mandal emphasized the need for collaborative efforts among departments, authorities, and the private sector to address issues arising from the elimination of discounts on spare parts. According to IPPAN, Mandal assured them of support for solving the problems of the private sector.

The Department has also assured to take initiatives to increase the license period for hydropower projects from 35 years to 50 years.

Ganesh Karki, the President of IPPAN, said that to achieve the target of generating 28,000 megawatts of electricity within 12 years, it is necessary to remove barriers hindering the private sector. He stated, “If not, we won’t even reach 2,800 megawatts, forget 28,000 MW.”

Karki said that the design of hydropower projects should be brought from Q40 to Q25, the period of permits for projects built by the private sector should be maintained for 50 years, the date for generating electricity for projects that could not be completed in time due to financial crisis should be extended by two years, and the deadline for financial management should also be extended by two years.

 

Source: Republica