Over Rs 286 million in royalties yet to be recovered from hydropower projects

Published On: May 27, 2024 07:49 PM NPT By: Republica  | @RepublicaNepal


Over Rs 286 million in royalties yet to be recovered from hydropower projects

KATHMANDU, May 27: The government is yet to recover Rs 286 million from various hydropower projects. In the 61st annual report of the Office of the Auditor General, it is noted that, according to the records of the Department of Electricity Development, Rs 286.995 million remains to be recovered by FY 2022/23.

Section 11 of the Electricity Act, 1992, stipulates that hydropower projects must submit Salami Dastur (royalty) to the Government of Nepal.

The Office of the Auditor General observes that there are currently no interest and penalty charges for late receipt of royalties due from various projects. This lack of enforcement on timely payments has prompted the office to suggest that legal provisions should be established to impose interest and damages on royalty arrears. The recommendation aims to ensure timely recovery of royalty amounts and improve compliance with financial obligations by the concerned projects.

 

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