Govt issues 15-day ultimatum to hydropower projects to settle outstanding royalties

Govt issues 15-day ultimatum to hydropower projects to settle outstanding royalties
By Republica
Published: January 05, 2024 09:16 PM

KATHMANDU, Jan 5: The government has issued a 15-day ultimatum to hydropower projects to settle outstanding royalties.

The Department of Electricity Development (DOED) issued a notice on Wednesday, providing a 15-day window for updating electricity royalties up to the fiscal year 2022/23. This directive is applicable to all hydropower projects with a capacity exceeding 1 megawatt.

In accordance with the Electricity Act of 2049 BS and Electricity Regulation of 2050 BS, organizations authorized to generate electricity are obligated to pay royalties. Currently, this royalty is distributed among all three levels of government.

The DOED has requested an update on the connected capacity and energy sales amounts until the last fiscal year.  

The notice also specifies that the failure to comply will result in the arrears being collected from the amount that the Nepal Electricity Authority pays to the hydropower projects for the sale of the project's electricity.

 

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