Irrational demands in the name of Gen Z worry hydropower investors

By A Staff Reporter.Kathmandu, Dec. 20: Investors have begun to feel harassed following obstructions in the construction of hydropower projects, as demands are being raised in the name of Gen Z and local residents for free shares, separate royalties, and other concessions.

Although energy projects issue 10 per cent of their shares to local residents in accordance with the laws and pay royalties as prescribed, energy investors have recently been troubled by demands for free shares and millions of rupees raised in the name of Gen Z and local communities.

Along with free shares, such groups have also started demanding millions of rupees to be paid to locals for using rivers, streams, and government land.

Ganesh Karki, President of the Independent Power Producers’ Association, Nepal (IPPAN), said the private sector has become increasingly concerned as activities obstructing project construction have begun in the name of Gen Z by demanding free shares and money not mentioned anywhere in the law, and which investors cannot afford.

“We have been providing shares as prescribed by the government, and projects have also been paying royalties as required,” he said. “Recently, various groups have started demanding free shares and money in their own names in contravention of the law. This discourages the private sector, which has made significant progress in energy development.”

He added that local governments in districts including Solukhumbu and Dolakha have recently begun demanding money by arbitrarily prescribing separate royalties, further increasing frustration within the private sector.

“We have repeatedly requested the Prime Minister, Finance Minister, Energy Minister, Minister for Federal Affairs, and other government agencies to take initiatives to stop these illegal activities and to maintain peace and security by writing letters and holding meetings,” Karki said. “However, the government has ignored the issue without taking it seriously.”

Earlier, after power generation at the Bhotekoshi project was halted, IPPAN had requested Home Minister Om Prakash Aryal to intervene and resolve the problem. The Home Minister immediately contacted the Chief District Officer and took meaningful initiatives to address the issue.

Chairman Karki said that after the new government came into power, some problems were resolved and project construction activities increased, adding that the government must remain serious about the issue.

“There was hope that the problem would be resolved after the Bhotekoshi incident, but it has instead started increasing. It is the government’s responsibility to encourage the private sector, which accounts for more than 80 per cent of electricity production, by taking immediate steps to resolve this problem,” he said.