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Friday, August 26, 2011

Hydroelectricity Licence Management Work Procedure(Antarik Karyabidhi 2068)

The Government of Nepal(GoN) has unveiled a power regulation that has ended the provision of awarding licence to hydropower projects greater than 10 MW to developers on a first-come, first-served basis. The regulation that came into effect from 2068-05-05 will now award licences of hydropower projects above 10 MW  through competitive bidding process. According to the karyabidhi prepared and passed by Ministry of Energyall applications applying for projects above 10 MW at the Department of Electricity Development(DoED) have been cancelled automatically.


There were 194 applications for projects above 10 MW at the department capable of generating  nearly 20,000 MW of electricity.Among the cancelled ones 16 were Indian companies predominantly from Andhra Pradesh, New Delhi, Maharashtra and West Bengal seeking to develop 42 projects between 110MW and 1,300MW.
 As per the provision,except for state-owned entities, no promoter will be awarded more than three projects(afu sanga ta auta ni chaina). It even forces Nepal Electricity Authority (NEA) to go through the bidding process.
The regulation also prohibits government officials associated with the hydropower sector from applying for survey licences or investing in hydropower projects as promoters. Promoters of hydropower projects have to submit a self-declaration form stating that none of them hold public posts in the energy sector.
The new power policy of the caretaker government has generated a mixed reaction among people. Some belief the policy will trigger greater interest from actual investors/promoters as they could now claim and construct the cream projects that were once occupied  by other( jal mafia ??) incapable applicants.
Jhola ma Khola prabirti (rivers in the pockets) will lessen and gradually removed from this sector. 
Others belief the decision of caretaker is not to be worried about and clamly wait and see ( parkha ra hera ) for the next government to come to power. Also the huge pressure from the business group can loosen the policy by huge amount in their favour.(byapari le chalako desh na paryo).
And also,the Nepalese developers can face problem in competing the bidding process alongside Indian and Chinese developers.( Chinese manpower being cheap will definitely bid low.)


Category                      No of applications       Capacity (MW)
10 to 25 MW               88                               1,463
25 to 100 MW             64                               3,501
More than 100 MW     42                               15,839 (source DoED)



The karyabidhi can be downloaded from the DoED website or from the link below:
http://www.doed.gov.np/procedure/licence-management-procedure-2068.pdf 

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