Electricity Generation Co in line to get survey licences
- green light
Jun 30, 2017-
The Department of Electricity Development (DoED) has recommended to the Energy Ministry to award the survey licences for four hydropower projects to newly established Electricity Generation Company.
The DoED has forwarded the applications submitted by the state-owned company to conduct surveys for the 617 MW Bheri-1, 627 MW Lower Arun, 307 MW Jagadulla Khola and 450 MW Kimanthanka Arun hydropower projects to the ministry. Electricity Generation Co had applied for the survey licences last May.
All these projects have an installed capacity of more than 100 MW, and existing laws require the Energy Ministry to award licences only with the recommendation of the DoED.
“We have found the paperwork submitted by Electricity Generation Co to be complete, and we have recommended to the ministry to issue the survey licences to it,” said Nabin Raj Singh, director general of the DoED.
Chiranjibi Chataut, joint secretary of the ministry, said they wouldn’t take much time to issue the permits to the company. “As the DoED has approved the applications, we don’t have to evaluate them further,” said Chataut.
“We will just recheck all the documents and grant the licences to the generation company soon.” Electricity Generation Co will be given a deadline of two years to complete the surveys.
Earlier, the Energy Ministry had agreed in principle to award around 19 projects that are under the DoED’s basket to the generation company, and it has already informed the DoED about the decision.
Electricity Generation Co is planning to identify the projects gradually and apply for the license at the DoED.
Electricity Generation Co was established under the Company Act 2006. The company will offer 17 percent of the shares to the general public. The Energy Ministry and Nepal Electricity Authority (NEA) own 20 percent and 10 percent of the company respectively.
Likewise, the Finance and Law ministries own 5 percent each, while the Employees Provident Fund and Nepal Telecom each hold 10 percent of the shares.
The Citizen Investment Trust, Hydroelectricity Investment and Development Company and Rastriya Beema Sansthan own 5 percent, 4 percent and 2 percent of the shares respectively.
Besides the general public, 10 percent of the shares in the company will be offered to locals of districts affected by hydropower projects being developed by the company, and 2 percent will be allotted to highly impoverished people.
The company has a paid-up capital of Rs300 million and an authorised capital of Rs20 billion.
Published: 30-06-2017 08:21