KATHMANDU: After years of ups and downs in the development modality of the Budhi Gandaki hydropower project, the government has decided to advance this national pride project in a company model.
The new company shall have a seven-member board of directors including three from the government comprising the Energy Secretary and two joint secretaries each one from the Energy Ministry and Finance Ministry, the Managing Director of Nepal Electricity Authority (NEA) and an independent board of directors. The tenure of the board of directors shall be five years.
A meeting of the Council of Ministers held Tuesday took such a decision on this reservoir-based project with the capacity of 1,200 megawatts at the proposal of the Ministry of Energy, Water Resource and Irrigation.
The project was stalled for a long for the delayed deciding whether to construct the project with domestic investment or give it to some foreign companies.
A French company handed over the detailed project report of Budhi Gandaki in 2014. Since then, the government has distributed almost Rs 40 billion in compensation for the land acquisition.
Earlier, the Chinese company Gezhouba had held the project for a long.
Earlier, speaking at the National Assembly meeting on Monday, Minister for Energy Pampha Bhusal had said the government was working to construct this hydel project in a company model.
Likewise, the authorised capital of the company will be worth Rs 60 billion and would be converted into 600 million units of general share. The issued capital of the company will be worth Rs 20 billion.
The Finance Ministry will have 25 per cent of the total shares of the company while Energy Ministry will have 40 per cent of the company’s share.
The NEA will hold 14 per cent of the share and Vidhyut Utpadan Company Limited (VUCL) will get one per cent of the company.