logo
GMR’s Objection Raises Uncertainty Over Betan Karnali Hydropower Project
Infrastructure
GMR’s Objection Raises Uncertainty Over Betan Karnali Hydropower Project
The proposed site of Betan Karnali Hydropower Project obtained from the developers' website.
09 December 2024

The GMR Group, an Indian company currently developing the 900 MW Upper Karnali Hydropower Project, has objected to the proposed 439 MW Betan Karnali Hydropower Project downstream, citing potential adverse impacts on its infrastructure and operations.

GMR has raised concerns that the full supply level (FSL) of water in Betan Karnali’s reservoir could affect the tailrace of the Upper Karnali project. The tailrace, a structure that releases water after power generation, may experience backflow, posing risks to the powerhouse of the Upper Karnali project.

The Betan Karnali project, spearheaded by the Employees Provident Fund and other stakeholders, is planned downstream of the Upper Karnali project. GMR claims that Betan Karnali’s reservoir area overlaps with its project’s impact zone, making it technically unfeasible without proper coordination.

GMR first raised objections during discussions with the Ministry of Energy in August 2021. In response to Betan Karnali’s request for a No Objection Certificate (NOC), GMR declined, citing unresolved technical concerns. It reiterated its stance through multiple letters to government bodies, including the Department of Electricity Development (DOED), the Ministry of Energy, and the Investment Board of Nepal.

Despite these objections, the Ministry of Forests and Environment approved the Environmental Impact Assessment (EIA) of Betan Karnali in January 2024. However, DOED has withheld production permits, asking Betan Karnali to secure GMR's consent.

The Investment Board and the Ministry of Forest and Environment have clarified that issues not identified during the environmental impact assessment (EIA) approval process can still be addressed at the stage of granting construction approval.

The Betan Karnali project, located downstream of the Upper Karnali project, has faced delays due to unresolved concerns from GMR Group, whose Upper Karnali project falls within the affected area of Betan Karnali's reservoir. Despite assurances of investment, Betan Karnali has not yet received production permission, leaving the project's future uncertain. Consequently, construction has been stalled for the past two years.

Director General of the Department of Electricity Development, Navinraj Singh, explained that the Betan Karnali Hydropower Project's reservoir overlaps with areas designated as the impact zone for the Upper Karnali Hydropower Project. He noted that when the Upper Karnali project, situated in the upper watershed of the Karnali River, was licensed, it was granted rights over a larger affected area. This overlap has prevented the department from granting construction permission for the Betan Karnali project.

DOED Director General Navinraj Singh stated that Betan Karnali must operate within its allocated boundaries and resolve technical conflicts with GMR. Without an agreement, Betan Karnali may need to reduce its project capacity.

GMR representatives have not provided any response regarding the dispute. Meanwhile, the Investment Board plans to mediate discussions between the two parties.

According to Betan Karnali Managing Director Krishna Prasad Acharya, pre-construction work is complete, and the project is ready to proceed once the production license is issued. Delays in the project have sparked protests in affected areas, with locals pressing the government to expedite construction. Political leaders from Achham district have also urged Energy Minister Deepak Khadka to prioritize the project.

The Betan Karnali Hydropower Project includes a dam with six gates, diversion tunnels, and an underground powerhouse with six turbines, each generating 71.68 MW. The Rs 74.15 billion project is expected to generate Rs 14 billion annually and be completed within five years of construction.

The Investment Board has emphasized the importance of finding a collaborative solution to ensure the progress of both projects. "Both projects should be built," said Investment Board spokesperson Pradyuman Prasad Upadhyay, adding that Betan Karnali might need to adjust its plans if GMR continues to withhold consent.

 

reactions

Please login to add comments login

Newsletter Subscribe to our news letter for daily news directly in your Mail box.
© 2025 New Business Age Ltd. All rights reserved.