Govt extends GMR survey license by six months

KATHMANDU, DEC 19 -

The government on Tuesday extended the survey licence of India’s GMR Energy for the 900-MW Upper Karnali Hydropower Project by six more months.

GMR, which is also developing 600-MW Upper Marsyangdi project, had requested the government for the renewal of the licence after it expired in November 2011.

A meeting of the Investment Board (IB) chaired by Prime Minister Baburam Bhattari also permitted GMR to increase its paid-up capital in the projects. GMR had sought the government’s approval to increase the paid-up capital in the projects to Rs 1.9 billion each.

IB Chief Executive Officer Radhes Pant said the meeting also granted permission to two Indian power developers—GMR and Satluj Jal Vidyut Nigam—to open their offices in India to explore markets for the power produced by them in Nepal. Satluj is developing the 600-MW Arun III hydropower project.

“GMR is registered here as GMR-Nepal and it needs to set up an office in New Delhi to sell power produced in Nepal, extend the grid and explore power markets. It is seeking approval to set up an office in India,” an IB source said.

Satluj has also sought approval from the government to extend the deadline for bringing foreign equity in Arun III.

Progress on 14 national pride projects, including five hydropower and seven infrastructure projects, handed over to IB was also discussed in the meeting. The government handed these projects over to IB on May 27, 2012. “The Prime Minister assured full support to fast-track the projects,” added Pant.

Some of the major projects IB is looking after are West Seti, Upper Karnali, Arun III and Tamakoshi III hydropower projects; Kathmandu-Tarai Fast Track, Mid-Hill Highway, Kathmandu Metro Rail Service and North-South Corridor Roads.

The Investment Board Act allows the IB to take charge of hydropower projects above 500-MW capacity and infrastructure projects worth over Rs 10 billion.

Source: The Kathmandu Post