The department has decided the royalty of hydropower projects, which government gets how much?

लगानी न्यूज

३० जेष्ठ २०८३, शनिबार २०:२२June 13, 2026

. The government has informed the concerned parties about the basis and structure of sharing royalty share in hydropower projects and urged them to do so accordingly.

The Department TAG_OPEN_div_51 of Electricity Development has urged the government to make arrangements accordingly, taking geographical location of the project, area of the affected local units and population as the main indicators for determining the royalty distribution.

The Department has determined the geographical location to be 50 per cent, the area affected to be 25 per cent and the population of the affected area to be 25 per cent.TAG_OPEN_div_49

Geographical location has also been determined as the main area, the affected area and the upper and lower riparian areas around the project.

The affected area has also been determined as the main area, the affected area and the surrounding area. Similarly, the population of the affected area has also been determined as the main area, the affected area and the surrounding area.

In the Constitution of Nepal, hydropower has been included in the list of common rights of all three levels as well as separate rights of the federal, provincial and local levels. Currently, the private sector and Nepal Electricity Authority (NEA) have constructed projects bigger than the capacity of one megawatt.

Mountaineering, electricity, forestry, mines and minerals, water and other natural resources are among the areas where royalty is to be distributed.TAG_OPEN_div_41 The federal government will have 50 per cent share in the project, while the province and local level will have 25 per cent each.

Out of the royalty collected, the amount to be received by the Government of Nepal shall be deposited in the Federal Consolidated Fund, the amount received by the Provinces shall be deposited in the Consolidated Fund of the Provinces and the amount received by the Local Government shall be deposited in the concerned Local Consolidated Fund.TAG_OPEN_div_39

The main area includes the respective wards of the local level where the physical infrastructure of the hydropower project is constructed. The main areas have been determined on the basis of the nature of reservoir-based projects, semi-reservoir and river-flowing projects.

} Arrangements have been made to distribute royalty to all the wards touched by the semi-reservoir project and the physical structures built for the supply of water to the power house.

Wards of the same river basin from the dam site to the power house, the upper riparian area of the project and the wards of the lower riparian area of the project are also in the affected area.

The Human Development Index (HDI) has not yet been taken as the basis for the distribution of electricity royalties.TAG_OPEN_div_31 The Human Development Index (HDI) has been taken as an important basis for revenue allocation and fiscal equalization grants.

According to the Department, 191 projects are currently generating electricity.TAG_OPEN_div_29 Similarly, 264 projects have obtained power generation license. According to the index set by the department, the districts with the highest number of projects will get less royalty and the districts with fewer projects will get less royalty.

The total installed capacity in the country has reached 4,2 TAG_OPEN_div_27 96 MW. The government has set a target to reach 5,535 MW of total installed capacity by the end of the coming fiscal year.