Ministry of Energy targets license revocation for dormant Hydropower projects

KATHMANDU: The Ministry of Energy has taken steps to revoke licenses for non-operational hydropower projects following directives from Prime Minister Pushpa Kamal Dahal.

The Department of Electricity Development (DoED) has formally requested progress reports from hydropower projects that have shown no advancement since obtaining licenses, specifically targeting 55 projects that have remained inactive for over five years. The intention is to cancel licenses in cases where a clear basis and action plan for project development are not provided.

Expressing concern over the concerning trend of acquiring licenses without making progress, Prime Minister Dahal contacted Energy Minister Shakti Bahadur Basnet on Thursday, instructing him to implement necessary measures to address this issue.

Chiranjeewee Chataut, the director general of the department, revealed that discussions have commenced with project promoters who have failed to make progress despite holding licenses. Chataut highlighted instances where hydropower projects have remained stagnant for up to eight years after obtaining licenses, citing financial constraints as a significant obstacle.

Among the projects required to submit progress reports, the largest is the 420 MW Tila-2 hydropower project by SC Power Company Pvt Ltd, which is yet to initiate work. On the other end, the smallest project is the 1.5 MW Istul Khola hydroelectric project of Amar Jayo Jalati Hydropower Pvt.

The request for progress reports also extends to government projects, including the 100 MW Tamakoshi-5 hydropower project, where Tamakoshi Hydropower Company is the promoter. Despite issuing a contract notice, disputes led to its cancellation, necessitating a restart of the process. Tamakoshi Hydropower Company operates as a subsidiary of the Nepal Electricity Authority.