Kathmandu. Kathmandu: The Department of Power Development has threatened to stop the payment of electricity tariff of Nepal Electricity Authority (NEA) after the operators of the hydropower projects refused to pay the royalty amount.
The Department has issued a public notice to the operators of 125 hydropower projects in the fiscal year 2080. The NEA has warned that if the salami fee is not paid for 81, it will be recovered from the remaining amount of electricity tariff.
According to the Department, out of the hydropower projects in operation, 125 hydropower projects were constructed in the last fiscal year 2080. Royalty amount of more than Rs 243.8 million is yet to be paid for 81.
Butwal Power and Upper Solu Hydropower Limited are among the defaulters of more than Rs 10 million, according to a notice published by the Department of Power Development. Of these, Butwal Power (Aandhi Khola) received the highest amount of Rs. Rs 2.80 crore and Upper Solu Hydro Power Limited (Solu) Rs. Rs 1.56 crore is yet to be paid. Similarly, the companies with arrears above Rs 5 million include Laughing Buddha Hydropower (Chakhu Khola) rs 9.429 million, Mountain Energy (Mistri Khola) Rs 9.429 million. Similarly, Rs 9.27 4 million, Super Madi (Madi Khola) Rs 8.81 million, Sahaj Urja (Solu Khola) Rs 8.6 million, Sanigad Hydro (Upper Kalangad) Rs 8.139 million and Nimbur Himalaya (Likhu Khola A) Rs 7.298 million are yet to be paid.
Apart from this, Global Hydropower (Likhu) rs 5.52 million, Maya Khola (Maya Khola) Rs 5.42 million, Api Power (Upper Chamelia) Rs 5.42 million. Similarly, Balefi Power (Upper Balefi A) and Beni Hydropower (Upper Solu Khola) have paid Rs 4.565 million and Rs 4.518 million respectively.
According to the Department, the mailung khola hydropower project is yet to pay the lowest amount of Rs 265.
According to the Department, hydropower projects have been reluctant to pay the royalty amount to be paid on a monthly basis for a long time. Apart from this, the production capacity royalty to be paid annually is yet to be recovered. Hydropower projects will have to pay 2% royalty of their total capacity for the first 15 years of commencement of production and 10% royalty in subsequent years.
Meanwhile, an application to the Securities Board of Nepal for ipo and issue of right shares to the general public for the purpose of capacity expansion of hydropower projects, repayment of loans and withdrawal of investment by the founders has been pending for months. According to the Independent Power Producers’ Association (IPPAN), for the last 21 months, the board has stopped allowing hydropower projects for IPO issuance.
The Board has stopped allowing the IPO citing the directive of the Public Accounts Committee that the real net worth should be more than 90 to issue the IPO from the 19th meeting of the Public Accounts Committee till January 12, 2080. Even before that, the approval of the IPO was stopped due to the absence of a chairman in the board. Recently, with the appointment of the board chairman, the proposal for ipo issue of some insurance companies and real sector companies has been approved.
The public issue of Rs 20 billion of 43 energy companies that have applied for IPO issue with the Board has been stopped. Apart from this, 11 hydropower companies have rs. Permission to issue rights shares worth Rs 4.5 billion has also been put on hold.
Hydropower producers have not been able to give shape to the financial plans and trade expansion plans as the Public Accounts Committee (SEBIN) has been a prisoner of indecision by the Securities Board of Nepal (SEBON). The bank has to bear the burden of debt unnecessarily.
