Bhote Koshi Hydropower Project to Resume Operation after Agreement to Allocate 10 Percent Shares to Locals

The operation of the 45 MW Bhote Koshi Hydropower Project, which had remained closed for nearly a month, is set to resume after the project reached an agreement to allocate 10 percent of the company’s shares to locals through an Initial Public Offering (IPO).

An all-party meeting held on Sunday between the agitating locals and Bhote Koshi Power Company reached an agreement to this effect. The deal ensures that locals will receive 10 percent of the company’s shares at Rs 100 per share.

According to Bhote Koshi Power Company’s CEO Bikram Ratna Sthapit, the locals will be able to purchase the shares through bank loans, for which the company itself will act as the loan guarantor. The agreement was reached under the coordination of Sindhupalchok Chief District Officer Bandhu Prasad Bastola, with representatives from the company, the protesting group, and the Ministry of Energy in attendance.

The project had been shut down since September 10 after a group under the name of the “GenZ Movement” demanded 10 percent of the company’s shares free of cost, threatening to disrupt operations. The company incurred losses exceeding Rs 300 million due to the month-long shutdown. Electricity generation is expected to resume from Monday morning.

Earlier, Home Minister Om Prakash Aryal had directed the Sindhupalchok Chief District Officer to immediately ensure the resumption of the Bhote Koshi Hydropower Project. Following his directive, the CDO initiated talks between the two sides. The same group has also demanded free shares from ten other hydropower projects in Sindhupalchok, although no agreements have been reached so far.

On September 18, an earlier discussion among the project representatives, agitating locals, and local representatives had turned violent, resulting in vandalism of the Bhote Koshi Rural Municipality office. Under mounting pressure, company representatives had agreed in principle to provide free shares, subject to a later decision by the board of directors.

Located in Sindhupalchok district, the Bhote Koshi Hydropower Project is a 45 MW project promoted through foreign direct investment. Initially backed by American investors, the project began commercial production in 2001. At that time, Nepali law did not provide for share allocation to local residents affected by hydropower projects, leaving locals without ownership.

In later years, locals demanded a 6 percent stake in the company. To address the issue, an all-party committee comprising local representatives, project-affected people, political leaders, and company officials was formed in 2014. However, the committee has yet to submit its report.