The process initiated for financial partnership in Mugu Karnali and Kimathanka Arun hydropower projects, which are considered commercially attractive, has been cancelled. The Electricity Production Company Limited (VUCL) called for proposals for both the projects, making a hasty procedure to suit certain individuals and business houses.

Now the process of company selection for financial partnership will be started only by amending the procedure. 

1902 MW Mugu Karnali and 454 MW Kimathanka Arun projects were compiled overnight by making procedures to narrow the competition . With the policy consent of Energy Minister Deepak Khadka, VUCL forgot the national interest and the previous practice and made a procedure, there was a stir even within the ruling party. 

Minister Khadka gave the approval on November 7, the same day he submitted a petition asking for policy approval to make a procedure for investment partnership from VUCL under the Ministry of Energy. After that, the VUCL Board of Directors meeting chaired by the Energy Secretary formed a three-member sub-committee under the chairmanship of Vinod Kumar Bhattarai, the director of the company, on November 9 to draft the 'procedure for sharing investment for project construction'.

It was approved by the committee on November 14 after the sub-committee submitted the procedure within a week. On the ninth day, the proposal for investment partnership was invited with a deadline of 15 days. The 15-day deadline was extended after the Abuse of Authority Investigation Commission showed interest. 

Congress MP and industrialist Vinod Chaudhary's CG Energo Pvt. Even if there is only one proposal, a procedure was made to proceed the process. 

Similarly, Nobel Group of Hydro Energy as well as Bela Nepal Industries, Vision Energy and Power, NJ Hydro Energy and Anak Hydropower had proposals for the 454 MW Kimathanka Arun. 

Nobel Group of Hydro Energy belongs to Congress MP Sunil Sharma while Vision Energy has Maoist and Congress leaders. Vision Energy's Executive Chairman TN Acharya is a member of Maoist's Audit Committee, while Director Rajesh Kumar Shrestha is a partner of Congress Treasurer Umesh Shrestha. Bela Nepal Industries is working in areas including housing construction. Anak Hydro Power Company has Chairman Sriram Maharjan and Managing Director Amrit Kumar Maharjan. 

When requesting the letter of intent for financial investment in two projects, it was found that VUCL did not inform the Investment Board and the Electricity Regulatory Commission. Hydropower projects of more than 200 megawatts are under the jurisdiction of the board.  According to Baluwatar sources, the selection process was stopped on the instructions of Prime Minister KP Sharma Oli after the

was disputed. Energy Minister Khadka also confirmed that the process has been stopped. Now the process will be moved forward so that everyone who has money can submit a tender. Two projects are not kept together, separate proposals are requested,' he told Kantipur, 'everyone including the Nepal Electricity Authority can submit a proposal.' It was decided by the Council of Ministers to hand over Fukot Karnali under VUCL to the Indian company NHPC. Solu Khola, Singti, Khare Khola, Maya Khola, Lower Solu and Mewa Khola hydropower projects were given to the private sector to generate more revenue. But for Mugu Karnali and Kimatha, the benefit directly received by the state has not been made a criterion. The criteria for giving 10 points to the financial proposal and 90 points to the technical proposal of the company wishing to invest in the

project have been specified in the procedure. Energy officials have been saying that the company offering the highest amount will get only 10 marks, weaken it in the overall evaluation, give the project to the company it wants and harm the state as well. 

The estimated cost of the Kimathanka Arun hydropower project, which is located near the Chinese border in Bhotkhola Rural Municipality-2 of Sankhuwasabha, is 93 billion 800 million. Similarly, the estimated cost of the Mugu Karnali project, which will affect the Mugu, Humla, Bajura, Kalikot and Jumla areas, is 4 trillion 60 billion. The basis of the amount that investors have to pay to the government to take up such large projects is weak. After taking over these projects, the company can sell them to any foreign company at their own terms and prices.