Apex Court's interim verdict for not extending term of GMP

KATHMANDU, NOVEMBER 4: The Supreme Court has issued an interim order, asking the government not to implement its decision to further extend the timeline given to  Gandhi Mallikarjun Rao (GMR), the Indian promoter of the Upper Karnali Hydropower Project. 

 Earlier on July 15, the Cabinet had decided to extend the term of this Indian firm, by two more years for handling the financial management of the project. The construction pace of the project is being seriously hampered, with GMP consistently unable to do the needful.   

 GMR has been holding the project for as long as the last fifteen years, thanks to the repeated extension of its term by the government.   

It is estimated that the total cost of the 900 MW -Upper Karnali Hydropower Project will be Rs 116 billion.  As per the agreement, the government is entitled to enjoy 27 percent of the total share capital as well as 108 MW of electricity for free of cost.