Hydropower projects paid more then 3 billion royalty


Hydropower plants that have been completed and are in operation have paid more than 3 billion rupees in royalties to the government. In the financial year 2021/22, the Electricity Development Department has collected 3 billion 572 million 62 thousand 688 rupees as royalties from the hydroelectric power stations that have been completed and are operating in various districts across the country.

The promoter companies of 121 hydropower projects, including 20 owned by Nepal Electricity Authority, have paid royalty to the department for electricity connection capacity and electricity sales.

According to the statistics of the financial year 2021/22 of the department, 2 billion 42 crore 2.4 Million 12 thousand 21 rupees is for the sale of electricity. 63 crore 4.8 Million 50 thousand 667 rupees is the royalty amount paid by the hydro power station for connected capacity.

In this financial year, the Electricity Authority has paid 1 billion 55 million 9.1 Million 42 thousand 812 rupees as royalty from 20 hydropower plants of 575 megawatts. This amount submitted by the authority is the royalty amount for connected capacity and electricity sales. In which 1 billion 14 billion 1.3 Million 60 thousand 812 rupees is due to the sale of electricity.

0.41 Billion 7.7 Million 82 thousand rupees is due to royalty related capacity. Kaligandaki A of 144 MW under the authority has paid 608.88 million 28 thousand 939 rupees as royalty. This royalty amount paid by Kaligandaki is more than the previous financial year.

Kulekhani-1 of the authority has paid 0.14 Billion 2.4 Million 14 thousand rupees to the department. Kulekhani-2 has paid Rs 0.7 Billion 1.4 million 5 thousand and Kulekhani III has paid Rs 4.8 Million 35 thousand as royalty.

Upper Tamakosi Hydrapower Company, the developer of 456 MW Matilla Tamakosi, has also paid 0.14 Billion 8.6 Million 66 thousand rupees. He has paid 0.4 Billion 5.6 Million rupees for connected capacity and 0.10 Million 3.3 Million 66 thousand rupees royalty in 1 year for selling electricity.

Similarly, Bhotekosi Power Company, the promoter of 45 MW upper Bhotekosi, has paid 383.39 million 49 thousand 543 rupees. Of which 45 million rupees is for connected capacity and 0.33 billion 8.9 million 49 thousand rupees for electricity sales.

Khimti-1 of 60 MW has paid 0.14 Billion 657 thousand rupees royalty to the government. According to the department, 0.11 Billion 0.6 Million 57 thousand is the royalty for the sale of electricity and 3 million rupees for the connected capacity.

Royalties of 0.13 Billion 3.7 Million 53 thousand rupees have been raised for the 22 megawatt Chilime hydropower plant under the subsidiary Chilime hydropower company of the Electricity Authority. Chilime has paid 0.14 Billion 7.1 million 4 thousand rupees and 0.12 Billion 2.5 million 4 thousand rupees for the sale of electricity and 0.2 Billion 2.1 million rupees for connected capacity.

Butwal Power Company has paid Rs 0.9 Billion 5.2 Million 17 thousand royalty for operating Andhi Khola and Jhimruk projects. It is mentioned in the statistics of the department that Laughing Buddha Power Nepal has paid 3.6 Million 99 thousand rupees as royalty from 3 hydropower stations.

Himal Dolakha Hydro Power Company has paid 3.9 Million 22 thousand rupees for operating 2 hydropower plants of 12 and a half megawatts. Sanima Mai Hydro Power Company has paid royalty for the 29 megawatt amount of Rs.0.02 Billion 1.7 Million 9 thousand rupee form 2 hydropower plants.

Api Power Company has paid 0.01 Billion 0.8 Million 77 thousand rupees for the operation of 2 hydropower plants of 16 and a half megawatts. Panchkanya Mai has paid royalty of 0.01 Billion 3.6 Million 64 thousand rupees to the government from 2 hydropower plants of 18.1 MW. According to the department, Bindbasini Hydro Power has paid a royalty of Rs 9.8 million 68 thousand from Rudi A and Rudi Khola B.

Similarly, Mountain Energy has invested Rs. 0.03 Billion 0.3 Million 16 thousand. Chyangdi Hydropower has paid 1.9 Million 83 thousand rupees for 2 hydropower plants of 6 megawatts.

In the financial year 2021/22, some hydroelectric power stations have not paid the royalty amount. Due to the non-disclosure of the promoters of some hydropower stations, the royalty arrears have been seen.

In this way, 121 hydropower stations that were added to the transmission system in different financial years have paid the royalty amount in 2021/22. In the financial year 2022/23, the royalty amount paid by the hydropower plants connected to the transmission system is not included in the latest data released by the department.

According to the provision in section 11 of the Electricity Act 1992, the licensed hydroelectric power plant must pay royalty to the government at the rate of 100 rupees per kilowatt of installed capacity and 2 percent of the selling price per unit (kilowatt hour) for 15 years after starting commercial production.

After the completion of 15 years of electricity production period, the hydropower project has to pay 1000 rupees per kilowatt per year and 10 percent of the average selling price per unit (kilowatt hour) to the government.

The amount raised for royalty is distributed to the central government, the respective district and local levels of the hydroelectric project. When a hydropower project is constructed at the local level, it contributes to the development of the local residents and the respective districts.

Source: NepalPurbadhar