File Photo: Upper Bhote Koshi HEP Intake

Kathmandu: The local Gen-Z group has acquired a 10 percent share in Bhotekoshi Power Company through purchase. Previously, the group had demanded a 10 percent share for free, causing concern across the electricity sector.

An agreement on October 12 confirmed that the shares would be purchased rather than given free, allowing previously halted projects to resume operations since September 10.

The demand for a free 10 percent share from the 45-megawatt Bhotekoshi Power Company, made under the name of the Gen-Z group, had created panic. On September 18, following chaos at the Bhotekoshi Rural Municipality office, an initial agreement was reached under the supervision of Municipality Chief Pasang Nurp Sherpa to provide the shares free of cost.

However, this proposal drew strong opposition from investors and stakeholders nationwide. Members of the Gen-Z group had even vandalized the rural municipality office during their demands.

Following the backlash, a new agreement was reached on October 12 among Chief District Officer Bandhu Prasad Bastola, Senior Division Engineer of the Ministry of Energy Shaligram Bhandari, Rural Municipality Chief Sherpa, and representatives from Bhotekoshi Rural Municipality wards 1-5. The deal stipulates that the shares will be sold at a price of 100 rupees per share.

Engineer Bhandari clarified that reports claiming the shares were given “free of cost” were false. Approximately 19 crore rupees worth of shares will be allocated to local stakeholders at the agreed price. Bhotekoshi Power Company will sell the 10 percent share—including the portion allocated to local residents—through a newly established public company, Bhotekoshi Gen-Z Public Investment Pvt. Ltd., which will also receive bank collateral for any loan taken to purchase the shares. The loan’s principal and interest will be repaid from the dividends of the same shares, with the public company covering any shortfall.

Additionally, Bhotekoshi Power has agreed to enhance its social responsibility contribution by providing the rural municipality with 25 million rupees annually.

Following the Bhotekoshi demand, the Gen-Z group also requested free shares from more than two dozen other hydropower projects in Sindhupalchok, alarming investors and operators. These included projects such as the 36-megawatt Upper Balefi “A,” 990-kilowatt Selang Khola and Ghatte khola, 7.2-megawatt Yambling Khola, and 45-megawatt Bhotekoshi, as well as under-construction projects including the 22.14-megawatt Balefi “A” Khola, 1.5-megawatt Lower Selang, 46-megawatt Upper Balefi, 35-megawatt Ngasim Khola, 65-megawatt Dudh khola, and 22.2-megawatt Upper Chaku “A.”

Bhotekoshi Power Company, which began production in 2001 with direct foreign investment, was originally planned to be handed over to the government after 25 years. However, the company has been permitted to continue operations until 2030.

Baahrakhari