Nepal government has scrapped license application of project developer NECT-HYM after it failed to show strong financial resources for NPR25bn ($269.2m) hydro project planned in the country.
The Department of Electricity Development (DoED) wrote a letter to the company stating that its generation license application for the 164MW Kali Gandaki Gorge project has been terminated.
DoED senior divisional engineer and spokesperson Gokarna Raj Pantha told Republica that the authorities scrapped the license application due to company’s inability to secure financial resources and outlining efficient environment impact assessment (EIA) report for the project.
"We can´t issue generation license before the EIA study is completed," claimed Pantha.
"We are hopeful that other genuine developers will come up with strong financial sources to develop the project."
The project, which was to built in Mustang and Myagdi districts, comprises development of 155-km 220 kV transmission line to connect its power output to the national grid.