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
Infosys 712.95 2.55
Indiabulls Hsg 824.85 -9.09
Reliance 1,170.30 0.56
Dewan Housing 243.85 -9.28
Yes Bank 236.90 -4.82
Company Price Change %Gain
Reliance 1,170.35 0.58
Indiabulls Hsg 824.60 -9.23
ITC 288.70 2.18
Dewan Housing 243.60 -9.63
AU Small Financ 619.20 -1.73
Top Gainers
Company Price Change %Gain
HCL Tech 1,030.10 2.66
Infosys 712.80 2.52
Coal India 283.05 2.41
Wipro 327.60 2.68
ITC 288.55 2.09
Company Price Change %Gain
Infosys 712.85 2.36
ITC 288.70 2.18
Coal India 282.60 2.21
Wipro 327.60 2.33
HUL 1,566.10 1.41
Top Losers
Company Price Change %Gain
Indiabulls Hsg 824.85 -9.09
Yes Bank 236.95 -4.80
Bajaj Finance 2,220.00 -3.85
BPCL 291.10 -3.64
Bajaj Finserv 5,495.00 -2.87
Company Price Change %Gain
Yes Bank 236.95 -4.76
Maruti Suzuki 6,989.30 -2.25
Axis Bank 573.95 -2.52
M&M 765.70 -1.62
Tata Steel 565.50 -1.50

Live TV

Loading...
Loading...