Kathmandu, March 12
Nepal’s Energy Ministry has canceled permits issued to Indian power developers who had been ‘occupying’ projects with a total potential of over 750 MW.
According to official figures, the government recently scrapped licenses issued to three power developers financed by Indian companies.
The projects whose licenses have been canceled are: 130 MW Budhi Gandaki ‘A’ and 260 MW Budhi Gandaki ‘B and 350 MW Dudhkoshi. The first two projects that were to be developed by Naulo Nepal Hydro Electric Pvt Ltd, a company backed by Indian financing. The ministry says Naulo Nepal, backed by Patel Engineering (India), failed to present important documents such as the proof of registration of a company, projects’ financial closure report and a draft of the power purchase agreement.
The 350 MW Dudhkoshi was promoted by KBR India Infra Pvt Ltd. According to sources, the ministry, in a letter dispatched on August 21, had demanded that the two companies present their financial closure reports and draft PPAs at the earliest. However, the companies failed to present the documents and the government decided to scrap their licenses.
Naulo Nepal received the license to develop Budhi Gandaki ‘A’ and ‘B’ in 2008. Similarly, KVR Infra received its license in 2010.
With the decision, the three projects have been added to the government’s basket. Other companies can now apply to get permits to develop the projects.
Published on March 12th, Monday, 2018 11:45 AM