Himal Press 
KATHMANDU: The government is preparing to restructure shareholding in Budhigandaki Jalvidyut Company to ensure that the Nepal Electricity Authority (NEA) holds a majority of shares in the company.
A task force, led by NEA’s Deputy Executive Director, Pradeep Kumar Thike, has been formed to finalize the share structure and address other related issues of the company. The government will make necessary decisions based on the report submitted by the task force.
According to Dinesh Kumar Ghimire, Secretary at the Ministry of Energy, Water Resources, and Irrigation, the restructuring of the company is being carried out on the direction of Prime Minister Pushpa Kamal Dahal. Ghimire also chairs the board of directors of NEA.
During a program held in honor of the newly appointed Minister for Energy, Water Resources, and Irrigation, Shakti Kumar Basnet, on Monday, Ghimire stated that the restructuring of the company is aimed at ensuring that NEA holds a majority stake.
The feasibility study for the Budhigandaki River project, which is located on the boundary of Dhading and Gorkha districts and has the potential to generate 600 MW of electricity, was conducted in the early 1980s. Following the feasibility study report, NEA hired the French company Tractabel in 2012 to conduct a detailed project report for the mega hydropower project. As per the latest project design, the project will have installed capacity of 1200 MW.
In 2011, the Baburam Bhattarai-led government decided to develop the project by establishing a special-purpose vehicle called the Budhigandaki Hydropower Development Committee.
In 2017, the government awarded the Budhigandaki project to China Gezhouba Group Company (CGGC) under the Engineering, Procurement, and Construction (EPC) model. However, in the same year, a team led by Dr. Sarnim Wagle recommended that the project should be built using domestic resources.
In 2018, the KP Sharma Oli-led government reversed the decision and handed the project back to CGGC. However, due to a lack of progress on the site, the government withdrew the project from CGGC and decided to establish a new company to implement it. Consequently, Budhigandaki Jalvidyut Company was registered at the Office of Company Registrar in August of the following year.
The company has an issued capital of Rs. 20 billion, with the Ministry of Energy holding 50% of the shares, the Ministry of Finance holding 30%, and NEA owning the remaining 20%. The estimated cost of the project is Rs. 331 billion.
(With inputs from RSS)
