By Our Reporter
GMR Upper Karnali Hydropower Limited, which is developing the Upper Karnali Hydropower Project, has expressed its commitment to conclude the financial closure (FC) and power sale agreement (PSA) within the approved timeline given by the government of Nepal.
A Cabinet meeting had recently decided to give the Indian company, GMR Group, two years to generate funds for the ambitious 900 MW Upper Karnali Hydropower Project.
Earlier, the 51st meeting of the Investment Board Nepal (IBN) held on June 6 under the chairmanship of Prime Minister Sher Bahadur Deuba, had recommended to the Cabinet of Ministers of Nepal that it extend the deadline under a condition that the developer of the Upper Karnali Hydropower Project, GMR, completes the financial management within 24 months.
Based on the recommendation, the meeting of the Council of Ministers held on July 15 decided to extend the deadline by two years.
Out of the two years, six months have been given to ensure the sale of the electricity produced from the project through the power sales agreement (PSA) and 18 months for financial closure.
The GMR has been occupying the project for about two decades without moving ahead with the construction works.
The project should have been completed in 2012, but the government has extended its term again in 2022. It is an example of how the Indian companies only occupied the big projects of Nepal for years doing nothing.
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