In the fiscal year 2081/082, royalty of Rs 3.803 billion has been collected from hydropower projects. The Electricity Development Department has stated that royalty of Rs 3.803 billion has been collected so far, including the arrears of the fiscal year 2081/082 and the previous fiscal year.

Section 11 of the Electricity Act, 2049 states that a licensee must pay a royalty of Rs 100 per installed kilowatt per year and 2 percent of the average selling price per unit kilowatt-hour for 15 years after the start of commercial production of hydropower.

In addition, after 15 years, there is a provision that hydropower projects must pay a royalty of Rs 1,000 per installed kilowatt per year and 10 percent of the average selling price per unit kilowatt-hour to the government.

In the fiscal year 2080/81, a royalty of Rs 3,444.44 million was collected. The department has collected a royalty of Rs 34,327.6 million from the fiscal year 066/067 to the current fiscal year. In the fiscal year 79/80, a royalty of Rs 3,155.1 million was collected and in the fiscal year 78/79, a royalty of Rs 3,572.2 million was collected. In the fiscal year 2066/67, 768.844 million rupees have been collected as royalty. The government has been collecting a certain amount as royalty from projects that have been completed and are in operation. Of the royalty collected from hydropower projects, 50 percent has been distributed to the federal government, 25 percent to the provincial government, and 25 percent to the local level. The 62nd report of the Auditor General has asked for the recovery of 432.256 million. 'Out of the 286.995 million rupees to be collected as royalty from various hydropower projects in 2079/80 and 3.589777 thousand rupees from 161 hydropower companies in 2080/81, 3.44446 million rupees have been collected, leaving 432.256 million rupees to be recovered,' the report said.