Two projects with 857MW installed capacity bag licences


    Survey licences were awarded to Jagadulla Khola and Kimanthanka Arun hydropower projects

    Jul 17, 2017

    The Ministry of Energy has awarded survey licences of two hydropower projects with total installed capacity of 857 MW to the recently established Electricity Generation Company and is in the process of handing over similar permits for two other projects with installed capacity of 1,244 MW.

    The ministry, last week, awarded survey licences to 307MW Jagadulla Khola and 450MW Kimanthanka Arun hydropower projects to the state-owned power generation company. Likewise, the ministry is in the process of awarding survey licences of 617MW Bheri-1 and 627MW Lower Arun to the company.

    “As the DoED is conducting the study of Lower Arun on its own, we will take some time to make a decision on that project,” said Dinesh Kumar Ghimire, joint secretary at the Energy Ministry. “However, we will soon award Bheri-1 to the generation company.” Although the Department of Electricity Development (DoED) had recommended that the Energy Ministry award survey licences of four hydropower projects to the state-owned generation company, the ministry awarded licences to two projects in the first lot.

    Electricity Generation Company had applied for survey licences at the DoED in May. Survey licences for projects with installed capacity of more than 100 MW are extended by the Energy Ministry based on recommendation made by the DoED.

    The ministry, however, is yet to dispatch official letter to the company.

    “We held talks with Energy Ministry officials on Sunday,” said Mohan Pant, CEO of Electricity Generation Company. “They have asked us to visit the ministry to get the letter within a couple of days.” After getting the survey licence, the generation company will have to complete the survey works in two years.  Earlier, the Energy Ministry had agreed in principle to award around 19 projects that are in DoED’s basket to the generation company, and it has already informed the DoED about the decision. The generation company is planning to identify the projects gradually and apply for licences at the DoED.

    Electricity Generation Company was established under the Companies Act 2006. The company will offer 17 percent of the shares to the general public. The Energy Ministry and Nepal Electricity Authority (NEA) own 20 percent and 10 percent stake in the company, respectively.

    Likewise, the Ministry of Finance and the Ministry of Law each own 5 percent of the shares in the company, while the Employees Provident Fund and Nepal Telecom each hold 10 percent of the shares. The Citizen Investment Trust, Hydroelectricity Investment and Development Company and Rastriya Beema Sansthan own 5 percent, 4 percent and 2 percent of the shares in the company, respectively.

    Besides the general public, 10 percent of the shares in the company will be extended to locals of districts affected by hydropower projects being developed by the company, and 2 percent will be allotted to highly impoverished people. The company has a paid-up capital of Rs300 million and an authorised capital of Rs20 billion.

    Source: The Kathmandu Post