The Ministry of Energy has initiated preparations to revoke the license of non-operational hydropower projects following Prime Minister Pushpa Kamal Dahal's directive.

The Department of Electricity Development (DoED) has requested progress reports from hydropower projects that have failed to progress after obtaining a license, specifically from 55 projects inactive for over five years. The plan is to cancel the license if a clear basis and action plan for project development are not provided.

Prime Minister Dahal, expressing concern over the trend of acquiring licenses without making any progress, called Energy Minister Shakti Bahadur Basnet on Thursday, instructing him to take necessary measures to curb this trend.

Chiranjeewee Chataut, the director general of the department, said they have started holding discussions with project promoters who have not made any progress despite acquiring licenses. Chataut noted instances where hydropower projects have remained inactive for up to eight years after obtaining licenses, citing financial constraints as a hindrance.

Among the projects required to submit progress reports, the largest is the 420 MW Tila-2 hydropower project, developed by SC Power Company Pvt Ltd, which is yet to commence work. The smallest project is the 1.5 MW Istul Khola hydroelectric project of Amar Jayo Jalati Hydropower Pvt.

Progress reports have also been sought from government projects, including the 100 MW Tamakoshi-5 hydropower project, where Tamakoshi Hydropower Company is the promoter, but work has yet to begin. Although the company issued a contract notice, disputes led to its cancellation, necessitating a restart of the process. Tamakoshi Hydropower Company is a subsidiary of the Nepal Electricity Authority.