KATHMANDU, JUN 17 -
The government has decided to enforce strict regulations to control the misuse of hydropower development licence, said Energy Minister Prakash Sharan Mahat.

Speaking at a programme here on Thursday, Mahat said the government will issue licences to only the investors, who are capable of undertaking hydropower projects. Till now the government is issuing the licence without assessing financial capacity of the particular procurer, thus delaying the project development.     

The new regulation would control the act of reselling the licence for profits, he said. “From now onwards the license procurer cannot hold the license without working.”

As per the new regulation, anyone applying for the licence should show one percent net worth of the estimated cost of the project.

The Department of Electricity Development (DoED) under the Ministry of Energy will fix Rs. 100 million for the licence of one megawatt. This means an investor applying for one megawatt should show bank guarantee of one million rupees.  

“We want to encourage only those investors who are financially capable to develop hydropower projects,” he said, adding, “The licence of those who fail to complete the project in given time will be scrapped,” .

The DoED has issued licences totalling 10,000 megawatt till date. Out of this, licenses for around 6,000 megawatt has been issued to Indian investors.


Posted on: 2010-06-18 08:42

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