Two-Year Extension for Large Hydropower Projects: Financial Relief

The government has decided to grant a two-year extension for the financial management of large hydropower projects. The Department of Electricity Development amended the 2075 BS directive, offering this relief to projects exceeding 100 MW. Director General Singh stated that this addresses delays in power purchase agreements and the complex financial processes of large projects. The provision to amend licenses with an industrial registration intent letter is expected to ease promoters’ efforts.

Solar power projects now require a recommendation from local authorities for survey and production licenses. To safeguard bank investments, provisions for auctioning projects and transferring licenses have been added. Currently, survey licenses for 29 solar projects totaling 483.5 MW have been issued. These amendments emphasize land-use rights and are believed to significantly contribute to achieving the government’s target of 28,500 MW by 2035.