GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

Nepal Scraps $2.5 Billion Hydropower Plant Deal With Chinese Company

"The cabinet has cancelled the irregular ... agreement with Gezhouba Group to build the Budhi Gandaki hydroelectric project," Energy Minister Kamal Thapa, who is also the country's deputy prime minister, said on Monday in a twitter post in Nepali after a cabinet meeting. He did not give further details.

Reuters

Updated:November 14, 2017, 10:35 AM IST
facebookTwittergoogleskypewhatsapp
Nepal Scraps $2.5 Billion Hydropower Plant Deal With Chinese Company
Representative image/REUTERS
Loading...
Kathmandu: Nepal has scrapped a $2.5 billion deal with China Gezhouba Group Corporation to build the country's biggest hydropower plant, citing lapses in the award process, the energy minister said.

"The cabinet has cancelled the irregular ... agreement with Gezhouba Group to build the Budhi Gandaki hydroelectric project," Energy Minister Kamal Thapa, who is also the country's deputy prime minister, said on Monday in a twitter post in Nepali after a cabinet meeting. He did not give further details.

Nepal's rivers, cascading from the snow-capped Himalayas, have vast, untapped potential for hydropower generation, but lack of funds and technology have made Nepal lean on neighbour India to meet annual demand of 1,400 megawatts (MW).

In June a Maoist-dominated coalition government awarded a contract to China Gezhouba Group Corporation to build a 1,200 MW plant on the Budhi Gandaki river, about 50 km (32 miles) west of Kathmandu, to address acute power shortages.

Critics say the $2.5 billion project was handed to the Chinese company without any competitive bidding, which is required by law, and a parliamentary panel asked the government that succeeded the Maoist-led coalition to scrap the deal.

Officials of the Chinese company were not immediately available for comment.

China and India jostle for influence with aid and investment in infrastructure projects in Nepal.

Kathmandu has cleared a 750 MW project to be built on the West Seti River in the western part of the country by China's state-owned Three Gorges International Corp.

It has also permitted two Indian companies - GMR Group and Satluj Jal Vidyut Nigam Limited - to build one hydropower plant each, both capable of generating 900 MW of power each, mainly to be exported to India.
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Kotak Mahindra 1,279.65 8.42
HCL Tech 961.95 -4.99
Sun Pharma 411.25 -2.12
Yes Bank 166.20 -1.34
Reliance 1,133.80 0.90
Company Price Change %Gain
Kotak Mahindra 1,282.25 8.53
Indiabulls Hsg 718.95 -1.80
Sun Pharma 411.30 -2.09
Yes Bank 166.10 -1.31
HCL Tech 961.55 -4.98
Top Gainers
Company Price Change %Gain
Kotak Mahindra 1,279.65 8.42
Bajaj Finserv 5,849.90 3.22
Adani Ports 373.45 2.61
Bajaj Auto 2,786.20 2.51
Bajaj Finance 2,486.35 2.22
Company Price Change %Gain
Kotak Mahindra 1,282.25 8.53
Adani Ports 373.75 2.71
Bajaj Auto 2,779.75 2.23
Infosys 681.05 1.92
Asian Paints 1,317.00 1.69
Top Losers
Company Price Change %Gain
HCL Tech 961.95 -4.99
GAIL 334.70 -4.10
Indiabulls Hsg 716.85 -2.25
Sun Pharma 411.25 -2.12
Coal India 236.75 -1.60
Company Price Change %Gain
Sun Pharma 411.30 -2.09
Coal India 236.80 -1.62
Yes Bank 166.10 -1.31
NTPC 137.85 -0.93
Tata Steel 507.90 -0.62

Live TV

Loading...