Kathmandu, July 7

The government has scrapped the licence issued to China Gezhouba Group Co (CGGC) for the survey of 128-megawatt Dandagaun-Khalanga-Bheri Hydropower Project in Jajarkot district.

After the company failed to renew the licence on time, the Department of Electricity Development (DoED) has scrapped its licence.

The CGGC had acquired the survey licence on April 23, 2017 and it expired on April 22 this year.

Madhu Prasad Bhetuwal, director general of DoED, confirmed that the department has scrapped the survey licence granted to CGGC. He further said that the company was providing updates to the department till March this year.

CGGC has established a company named Gezhouba Group Power Investment Nepal Pvt Ltd in partnership with a Nepali company.

Moreover, the DoED informed that they have scrapped survey licence of two other hydropower projects. The department has scrapped the licence of 4.36 MW Gamari Gadh, located in Rukum district, and 4.2 MW Sava Khola-C in Shankhuwasabha district.

Earlier, the government had decided to award the contract of 1,200 MW Budhigandaki storage project to CGGC without competitive bidding. This had raised quite a few eyebrows and landed the project in controversy, even as representatives of the firm in Nepal tried to dismiss the concerns citing ‘G2G level understanding between the two countries’.