Govt. cancels 12 hydro project licenses

The government, which has been widely criticise for the ongoing power crisis, has annulled 12 hydropower projects licenses.

The 12 hydro project licenses has been cancelled citing failure to make progress on the part of the private licensees. The licenses were issued to conduct survey for generation of electricity across the nation.

According to reports, these projects were estimated to generate at least 246.161 MW.

Two projects — Lower Balephi in Sindhupalchowk and Kolphu Khola in Dhading — were issued licenses in 2001. They were cancelled since the stipulated five-year tenure has already elapsed.

While, the promoters of 27 MW Khimti-2 in Dolakha and 5-MW Madkyu Khola in Kaski surrendered their licenses since they failed to accomplish the task within the timeframe.

The projects, whose license has been cancelled, also include the 1.5-MW Likhu and 67.7 MW Kaligandaki Begkhola project in Myagdi.

Six other projects lacking “satisfactory progress” were cancelled. While, one was cancelled as it did not revalidate the application within the timeframe.

The decision to cancel the 12 licenses was taken during a recent seven-party meeting.

Sri Ranjan Lacoul, director general, Department of Electricity Development (DoED) is quoted in a report as saying that after the Jana Andolan II, the then government had urged the private players to conduct the survey by 2006. Those who failed to make the grade got their licenses cancelled.

Usually, the DoED under the Ministry of Water Resources (MOWR) issues three types of licenses for generation, transmission and distribution of electricity.

The DoED is responsible for assisting MOWR in implementation of overall government policies related to power/electricity sector. Its major functions include ensuring transparency of regulatory framework, accommodating, promoting and facilitating private sector's participation in power sector by providing "One Window" service and license to power projects.