|Loading...
share-gyan
  • News
  • Analysis
  • Technical
    ShareGyan Logo

    Powering Nepal's Investors with knowledge

    Quick Links

    • Home
    • Partners
    • Privacy Policy
    • Collaboration Request

    Contact us

    Pulchowk, Lalitpur
    info@peridot.com.np
    9851046764,9801462662

    Follow us

    FacebookInstagramTikTokYouTube
    © 2026 Share Gyan Nepal. All Rights Reserved.
    1. Home
    2. /
    3. News
    4. /
    5. Government Committee Recommends Cancellation of 38 Sluggish Hydropower Licenses Totaling 1,388 MW
    Published June 11, 2026
    By Share Gyan

    Government Committee Recommends Cancellation of 38 Sluggish Hydropower Licenses Totaling 1,388 MW

    A high-level committee under the Ministry of Energy, Water Resources, and Irrigation has recommended revoking the licenses of 38 hydropower projects with a combined capacity of 1,388 MW due to zero progress despite Power Purchase Agreements (PPAs). The move follows the government's 100-point governance reform action plan and the budget statement targeting inactive projects.

    Government Committee Recommends Cancellation of 38 Sluggish Hydropower Licenses Totaling 1,388 MW

    A high-level committee formed by the Ministry of Energy, Water Resources, and Irrigation has recommended the cancellation of licenses for 38 hydropower projects, totaling 1,388 MW, which have failed to show any progress long after signing Power Purchase Agreements (PPAs). This evaluation was carried out in line with point 74 (b) of the government's 100-point governance reform action plan to review the current status of licenses issued by the Department of Electricity Development. Additionally, the committee recommended revoking licenses for 11 other projects (totaling 169 MW) that obtained production permits before 2019 but have since made no progress, citing violations of permit conditions and failure to comply with Rule 21 of the Electricity Regulation 2050. The comprehensive study categorized remaining projects based on performance, placing 15 projects (220 MW) with over 50% progress within five years on a priority list, and 131 projects (5,642 MW) nearing 50% progress on an encouragement list. Furthermore, 38 projects (1,124 MW) facing mixed execution challenges were marked for facilitation to accelerate completion, while 75 troubled projects (4,121 MW) with extremely weak progress were recommended for disciplinary action. Backed by the fiscal year budget statement which explicitly dictates the cancellation of licenses for projects that have secured PPAs but failed to initiate construction, the government now has a clear path forward to penalize non-performing developers.

    Most Recent

    Oct 11, 2026
    Floodwaters Sweep Away Key Bridge Near Arughat, Severing Transport Links Between Gorkha and Dhading

    Share Gyan

    Floodwaters Sweep Away Key Bridge Near Arughat, Severing Transport Links Between Gorkha and Dhading
    Oct 9, 2026
    Electricity Supply in Kathmandu Valley May Be Affected on October 10–11

    Share Gyan

    Electricity Supply in Kathmandu Valley May Be Affected on October 10–11
    Oct 9, 2026
    National Cooperative Bank Raises Concerns Over Cooperative Act Amendments, Calls for Stronger Risk Management

    Share Gyan

    National Cooperative Bank Raises Concerns Over Cooperative Act Amendments, Calls for Stronger Risk Management
    Oct 9, 2026
    Floods and Landslides Disrupt Major Highways; Two Road Sections Completely Closed

    Share Gyan

    Floods and Landslides Disrupt Major Highways; Two Road Sections Completely Closed
    Oct 9, 2026
    Government Orders Strict Action Against Black Marketing and Overcharging Ahead of Dashain

    Share Gyan

    Government Orders Strict Action Against Black Marketing and Overcharging Ahead of Dashain
    Oct 9, 2026
    Government Recommends Three Ordinances, Orders Action Against 1,167 Employees for Rule Violations

    Share Gyan

    Government Recommends Three Ordinances, Orders Action Against 1,167 Employees for Rule Violations