Nepal to give GMR 24 months to generate funds for Upper Karnali Hydropower Project

Kathmandu, February 17

The government has decided to give the Indian company, GMR Group, two years to generate funds for the ambitious Upper Karnali Hydropower Project.

The company has been dillydallying the assignment for the past few years, yet the government seems helpless to do anything except extending the time.

Out of the two years, six months of time has been given to sell the electricity produced from the project through the Power Sales Agreement (PSA) and 18 months for financial closure.

A high-level committee led by the deputy chair of National Planning Commission Biswa Poudel suggested the government extend the time frame. This means GMR will now have two years to find the funds for the project.

The committee had asked GMR reason why it had not been able to generate funds for the project. In reply, GMR told the committee that the Government of Bangladesh had already issued a letter of intent to purchase 500 MW of power for the project that would assure them a return on its investment.

GMR also stated that it needed time to find ways to sell electricity to Bangladesh and had spoken with Indian companies NTPC and NNVN.

After the Government of Bangladesh and India confirmed the authenticity of the company’s claim, the committee has prepared to give GMR an extension for the project.

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