The boundary dispute between the promoter of the Betan Karnali Hydropower Project, Betan Kapali Sanchayakarta Hydropower Company Limited, and the GMR Upper Karnali Hydropower Project has been resolved, paving the way for the construction of the 439-megawatt Betan Karnali Hydropower Project.
Previously, GMR had objected to the development of the Betan Karnali project claiming that water from Betan Karnali’s dam site would impact the tailrace of the UpperKarnali Hydropower Project. The dispute has now been settled following a technical agreement between both parties to maintain a two-metre vertical gap between the tailrace level of Upper Karnali and the reservoir level of Betan Karnali.
Sushil Gyawali, Chief Executive Officer of the Investment Board Nepal (IBN), told New Business Age that the board played a decisive role in resolving the issue. He added, “Following technical discussions at the board's office over a few days, both parties reached an agreement.” The prolonged dispute had cast uncertainty over the future of the Betan Karnali project, but with this resolution, the path is now clear for it to generate power at full capacity.
He further stated that the door is now open for the project's construction.
Due to the boundary dispute, most of the project activities had been stalled. Despite this, expenses totalling Rs 153.27 million have already been incurred under various headings including engineering studies, environmental impact assessment (EIA), access road expansion, test hall construction, and staff salaries and allowances.
The Betan Karnali Hydropower Project is being developed on the border of Chaur Amari in Surkhet district. The project is being built with collective investment, where contributors to the fund will hold 40 percent institutional shares, the Hydropower Generation Company will hold 15 percent, and the Nepal Electricity Authority and founder shareholders will each hold 10 percent.
