Reservoir of Upper Bhotekoshi Hydropower Project. Photo: Chitra Kumar Mijar/TRN

The electricity generation at the 45-megawatt Upper Bhotekoshi Hydropower Project has been completely halted for a month due to an ongoing dispute over the allocation of free shares to local residents affected by the project.

The shutdown began after the Gen-Z group from Bhotekoshi Rural Municipality launched a protest since mid-September, demanding that 10 per cent of the company’s shares be distributed free of cost to those impacted by the hydropower development - a demand they claim has been ignored for the past 25 years.

According to the project, it is incurring a daily loss of Rs. 10 million due to the non-production of power for a month.

A month ago, the Gen-Z group began a phased protest by locking down the project in Bhotekoshi Rural Municipality-2 after the project did not provide shares to the affected locals for 25 years.

On September 18, after talks between the local Gen-Z group, Bhotekoshi Power Company, and the chairperson of Bhotekoshi Rural Municipality, an agreement was signed to provide 10 per cent free shares to the affected people within 45 days.

Since mid-September, the Gen-Z group of Bhotekoshi Rural Municipality had rioted and locked down the damside area of the project, saying that the project had not given shares to the affected people. Although the project was supposed to start generating electricity from that day, no electricity has been generated so far. The Nepali Army is currently providing security to the project. The project's official Babin Pradhan said that the project is facing a daily loss of Rs. 10 million due to the lack of electricity production for about a month.

According to the company, it cannot provide shares to the affected people, saying that it has agreed to provide 10 per cent shares by force. The company has started approaching higher authorities to not provide shares to the affected people.

In the agreement reached on September 18, Babin Pradhan and Prem Saud from Bhotekoshi Power Private Limited, Phurpa Sherpa on behalf of Gen-Z, Bhotekoshi Rural Municipality Chairman Pasangnurpu Sherpa, and Chairman of Ward No. 3 Nima Sherpa signed the decision to provide 10 per cent shares to the affected people within 45 days.

However, representatives of the company are now saying that the company cannot provide 10 per cent shares for free and that they signed under pressure at that time. Meanwhile, Minister for Home Affairs Om Prakash Aryal has directed the concerned authority to immediately bring the Upper Bhotekoshi Hydropower Project, which was shut down after the locals affected by the project demanded free shares.

On Wednesday, a team led by Independent Power Producers Association, Nepal (IPPAN) President Ganesh Karki, along with representatives of the affected hydropower projects, informed the Home Minister about the incident.

President Karki had said that shutting down the hydropower project in the name of Gen-Z youths was anarchic and demanded that Home Minister Aryal create an environment for the project to be operated as soon as possible.

Responding to IPPAN's concern Home Minister Aryal telephoned Chief District Officer of Sindhupalchowk Bandhu Prasad Bastola and instructed him to immediately bring the Bhotekoshi Hydropower Project into operation, according to IPPAN.

By Chitra Kumar Mijar