Nepal | July 13, 2020

Guideline for issuing hydel licence issued

Himalayan News Service
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  • Local levels will issue survey licence within 15 days of the submission of application

Kathmandu, May 24

The government has developed and enacted Guideline for Local Energy Development for concerned local levels to issue licence for hydroelectricity projects with installed capacity of less than one megawatt.

Any promoter, who desires to obtain electricity generation/transmission or distribution licence for a project with an installed capacity of up to one megawatt, may submit an application, accompanied by prescribed documents and details, to the office of the concerned local level. “The local level shall, if it deems that the documents and details submitted by the promoter are reasonable and meet all requirements prescribed by the guideline, issue survey licence within 15 days of the submission of the application,” it reads. Such project requires Initial Environmental Examination or Environmental Impact Assessment.

The term of the licence shall not exceed three years from the date of issuance. “A survey licence with validity period of minimum two years shall be issued to the promoter for the first time. If the survey could not be completed within the two years, the promoter may submit an application seeking renewal for additional one year before the original term expires. In the event that renewal is not sought, the licence shall be automatically revoked,” the guideline says.

As per the guideline, the local level may issue electricity generation, transmission and distribution licence at the same time on the basis of necessity and appropriateness. It requires the promoter to complete construction work within three years from the date of issuance of the generation licence.

“If the construction work is not started within one year from the date of issuance of the licence, it may be terminated. The term of the generation licence shall be 30 years. Upon completion of the period, the project shall be transferred to the Government of Nepal in an operational state,” the guideline says.

Local levels may request the Department of Electricity Development for technical support before issuing licence to promoters.


A version of this article appears in print on May 25, 2018 of The Himalayan Times.

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