Tuesday, 29th July 2014

Two hydropower production licenses granted


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The government has awarded production license to additional two hydropower projects. The Department of Electricity Development has issued the license for power generation to Rawa Khola (stream) and Lower Pipuwa Khola projects on Wednesday. These projects are expected to start power production within the next three years.

The Rawakhola Project based in Khotang district having the capacity of generating 6.5 megawatt of electricity is to be constructed by the Dudhskoshi Power Company Ltd. According to the Department's Information Officer Gokarnaraj Pantha, the company has pledged to start the power production from the Rawa Stream within three years.

The construction of the project is estimated to cost Rs. 920 million.  The promoter of the project has already signed the Power Purchase Agreement with Nepal Telecom Authority.

As per the agreement, NEA will purchase the power at Rs. 4.8 per unit in rainy season and Rs. 8.40 per unit in the winter. Power to be produced from the project will be linked to the national grid through the sub-station based at Buipa of Khotang. The project's promoter has already prepared the Environmental Impact Assessment (EIA) report.

Similarly, River Falls Hydro Power Development Pvt Ltd has received a license for the construction of Pipuwakhola Project based in Sankhuwasabha district. The 9.5 megawatt-project is estimated to cost Rs. 1.05 billion.

The company assured that it would prepare the EIA report within a year and is planning to make the PPA with the NEA soon. The Department has directed the companies to begin the construction works on time, stating that their license could be scrapped if they failed to abide by its instructions.