The 880 MW Tila-Karnali Hydro Power, a proposed project in the Karnali region, has been gathering dust for the past 12 years due to the apathy of the developer company.

AC Power Company, which was entrusted with the construction of the project, signed an agreement with the government in March 2011. Even after almost 12 years of the agreement, the construction of the Tila Karnali Hydropower Project is yet to begin.

During this period, the company has only delayed the project without even raising investment. The company had an agreement to produce a total of 880 megawatts of electricity from 440 megawatt Tila (1) and 440 megawatt Tila (2).

It is mentioned in the DPR that a dam would be built at Tilagufa-5 Dhanada in Kalikot for Tila (1) and at Serabada of Khandachakra Municipality for Tila (2). The last deadline given for the financial closure of the project expired last year, but GMR, the Indian company expected to invest in the project, did not come to formal discussion with the government even after the failure to raise the required investment within the stipulated time.

As a result, the future of the project has become uncertain. The work could not be started even after years passed after the deadline for raising investment. A project development agreement has also been signed between a local company and an Indian company for this project of about 900 MW, which has been embroiled in political entanglements.

Construction company raising investment

AC Power Company, which has been looking for investment for years, has not returned to the district. The company, which is looking for investment by extending the construction deadline, is now looking forward to the Indian company GMR to inject the investment. As the transmission line has not been built, the construction work has not yet been carried forward, said Hari Chandra Shah, head of AC Power Company.

“Although we were entrusted with the construction for a long time, we did not receive the official license from the government," Shah said, “Now that we have received it, we will continue the work from February."

“Although the construction was entrusted to the company, it was stopped due to some technical and financial challenges. We are making an agreement with the Indian company GMR for investment. Now the work will go ahead,” said Shah.

Kalikot Chief District Officer Ramhari Sharma said that the Tila-Karnali hydropower project has been stalled due to the reliance of the Indian company GMR as the domestic company could not invest in the project.

“This company should proceed with the work in accordance with the agreement and coordination on this matter. The deadline should not be extended, if it does not work, let another company do it,” Sharma said, “Domestic company AC Power has neither worked nor allowed others to work on Tila 1 and Tila 2 hydropower projects. One cannot bag a river project for years without working.”

The project has dug a 9-meter tunnel without taking the consent of the local residents of the affected area. The tunnel dug for testing has been passed. Even after nine years of tunneling, the company has not yet reached this area.

A 9-meter tunnel has been dug without determining the price of compensation with the residents of the affected area. In the Project Development Agreement (PDA) of March 2011, it was mentioned that the financial management of Tila Karnali would be completed within five years (by October 2016).

Warning to the company

The locals of the project-affected area of Kalikot have warned the construction company to abandon the project if the project cannot be completed, saying that the Tila Karnali hydropower project is not progressing.

The citizens affected by the project protested saying that either the project should be completed or GMR should abandon it. The Nepal Peasants and Workers Party has been protesting for a long time saying that the Indian company GMR should not be allowed to build the Upper Karnali and Tila hydropower projects.

Khadga Raj Shahi, district chair of Nepal Peasants and Workers Party, has warned the GMR company, which has been holding on for years without building the project, to complete it as soon as possible or else leave it.

"GMR has repeatedly fooled us saying that it will carry out the construction work, but it hasn’t even resolved the compensation problem," he said, "There is no situation for the locals to remain silent now."

This company has also been warned not to proceed with the construction based on the old contract. It has been said that the construction work should be carried forward only on the condition that electricity is first consumed in Nepal and then sold to India.

Along with the construction agreement, 30 percent of the work has been completed since the compensation of Phukot Karnali hydropower. It has been alleged that Tila's work has not started yet because of the weakness of the leadership of the main political parties.

Civil society leader Hasta Bahadur Bam said that the failure to start the construction work even after 12 years of awarding the contract to the company is the weakness of district leadership.