- In the fiscal year 2024/25, a total of NPR 3.80 billion and 30 million (Rs. 3,80,30,00,000) in royalties was collected from hydropower projects.

- The government has arranged for the royalties collected from hydropower projects to be distributed as follows: 50 percent to the federal government, 25 percent to the provincial government, and 25 percent to the local level.

- The report of the Auditor General mentions that NPR 432.256 million (Rs. 43 crore 22 lakh 56 thousand) is yet to be recovered.

A total of NPR 3.80 billion (Rs. 3,80,30,00,000) in royalties has been collected from hydropower projects in the fiscal year 2024/25. According to the Department of Electricity Development, this amount includes royalties from the fiscal year 2024/25 as well as outstanding dues from the previous fiscal year.

According to Section 11 of the Electricity Act, 1992, a license holder must pay royalties at the rate of NPR 100 per installed kilowatt annually and 2 percent of the average sales price per kilowatt-hour unit for the first 15 years of commercial hydropower production.

Additionally, after 15 years, hydropower projects are required to pay the government royalties at the rate of NPR 1,000 per installed kilowatt annually and 10 percent of the average sales price per kilowatt-hour unit.

In the fiscal year 2023/24, NPR 3.44 billion and 44 million (Rs. 3,44,44,00,000) in royalties was collected. The Department has collected a total of NPR 34.32 billion and 76 million (Rs. 34,32,76,00,000) in royalties from fiscal year 2009/2010 up to the current fiscal year. In fiscal year 2022/23, NPR 3.15 billion and 51 million (Rs. 3,15,51,00,000) was collected, and in fiscal year 2021/22, NPR 3.05 billion and 72 million (Rs. 3,05,72,00,000) was collected. In fiscal year 2009/2010, royalties collected amounted to NPR 768.844 million (Rs. 76 crore 88 lakh 44 thousand).

The government has been collecting a fixed amount as royalty from completed and operational hydropower projects. Of the total royalties collected from hydropower projects, 50 percent is allocated to the federal government, 25 percent to the provincial government, and 25 percent to the local level.

The 62nd report of the Auditor General states that NPR 432.256 million (Rs. 43 crore 22 lakh 56 thousand) remains to be recovered. The report mentions, “Of the total NPR 3.87 billion and 67 million and 2 thousand (Rs. 3,87,67,02,000) in royalties to be collected from various hydropower projects - NPR 286.995 million (Rs. 28 crore 69 lakh 95 thousand) for the fiscal year 2022/23, and NPR 3.58 billion and 97 million and 7 thousand (Rs. 3,58,97,07,000) from 161 hydropower companies for the fiscal year 2024/25 - NPR 3.44 billion and 44 million and 46 thousand (Rs. 3,44,44,46,000) has been recovered, leaving NPR 432.256 million (Rs. 43 crore 22 lakh 56 thousand) yet to be collected.”

The Auditor General has also noted that no interest or penalty is imposed for delays in receiving royalties from the projects. The report mentions that the outstanding royalties owed to the government should be recovered.

Source: Kantipur