Bhote Koshi Hydropower Project Remains Stalled Despite Home Minister’s Directive

Despite Home Minister Om Prakash Aryal’s directive on October 8 to immediately resume operations at the Bhote Koshi Hydropower Project, power generation remains halted. The 45-megawatt project in Sindhupalchok has been shut down for over a month after a group identifying itself with the Gen Z Movement demanded 10 percent of company shares for free, threatening to obstruct the project until their demand was met.

The project, which is currently under protection of the Nepali Army, has suffered losses exceeding Rs 300 million due to the production halt. According to the local administration, several rounds of talks with the protesting group have failed to yield results.

Chief District Officer (CDO) of Sindhupalchok, Bandhu Prasad Bastola, said that despite repeated attempts of negotiations following the minister’s directive, no agreement has been reached. “The company has shown flexibility in offering 10 percent shares to locals through an Initial Public Offering (IPO) at Rs 100 per share. However, the protestors remain adamant about receiving the shares free of cost,” he explained.

Bastola added that a new round of talks was scheduled to take place on Sunday morning in the presence of representatives from the Ministry of Energy, the protesting group, and the Bhote Koshi Hydropower Company. Earlier meetings on Thursday and Friday also ended without a conclusion, leaving the project’s future uncertain.

A previous attempt to resolve the issue on September 18 ended in clashes. Protestors vandalized the Bhote Koshi Rural Municipality office during that incident. Following the unrest, the company’s representatives had tentatively agreed to consider free share distribution, pending board approval. However, the company later stated that the agreement was made under pressure and subsequently sought intervention from the Independent Power Producers’ Association of Nepal (IPPAN).

Company Rejects Free Share Demand

Bhote Koshi Power Company’s Chief Executive Officer Bikram Ratna Sthapit said the company cannot legally distribute free shares. “There is no provision in Nepal’s law to issue free shares to locals. If we make such an exception, other projects will face similar demands in the future,” Sthapit said. “We must ensure that our decision does not set a precedent that affects other hydropower projects.”

The company remains willing to distribute shares to locals through the IPO process but insists that giving them away for free is not possible under any circumstance.

Growing Pressure on Other Projects

The Bhote Koshi dispute has sparked similar incidents across Sindhupalchok. IPPAN reported that at least ten other hydropower projects have faced threats from groups demanding 10 percent free shares under the same Gen Z banner.

In response, representatives of these affected projects, led by IPPAN President Ganesh Karki, met with Home Minister Aryal to brief him on the escalating threats. Following this, the minister instructed authorities to ensure the immediate operation of the Bhote Koshi project.

The projects facing similar demands include Upper Balephi A (36 MW), Yambaling Khola (7.2 MW), Selang Khola, and Ghatte Khola, among others. The protest groups have reportedly given project operators between one month and 45 days to meet their demands, warning that production will be shut down otherwise.

IPPAN President Karki cautioned that if all hydropower plants in Sindhupalchok are forced to stop production, Kathmandu could face severe power shortages. “Nearly all projects in the district are under threat. If the situation continues, it could trigger a wider energy crisis,” he said.