The decision aims to support genuine investors and expedite projects that have demonstrated tangible progress despite missing their initial deadlines.
The move follows an evaluation of projects that signed Power Purchase Agreements (PPAs) but encountered construction roadblocks. Under a policy approved by an NEA Board of Directors meeting on July 16, the authority categorized 218 hydropower initiatives into four tiers—'A', 'B', 'C', and 'D'—based on physical progress, RCOD status, and PPA obligations. RCOD extensions are currently rolling out for compliant projects under Categories 'A' and 'B'.
Category 'A' encompasses projects that met fundamental obligations, while Category 'B' covers projects that reached at least 25 per cent physical progress or suffered construction delays tied to transmission infrastructure issues and uncontrollable circumstances.
Among the 27 projects receiving extensions are Balephi-A, Upper Brahmayani, Nyasim Khola, Sona Khola, Khani Khola-1, Lower Mid Rawa, Madhya Rawa, Middle Super Daraudi, Upper Pikhuwa Khola, Khani Khola, Nupche Likhu, Sabha Khola C, Midim-1 Khola, Luja Khola, Upper Deumai, Phedi Khola, Nyadi Phidi, Shyam Khola, Upper Chauri Khola Small, Mewa Khola, Rahughat, Sanghu, Marsyangdi Besi, Sanghu Khola-1, Hidi Khola, and Sanigad.
Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha emphasized that the government aims to facilitate active builders rather than penalize the private sector. He noted that future RCOD decisions will rely on clear institutional criteria rather than personal discretion, stressing mutual accountability between the state and private developers.
Presently, the NEA oversees 320 hydropower projects totaling 8,292 MW across various development phases. This includes 150 projects (4,491 MW) in Category 'A' and 68 projects (1,420 MW) in Category 'B'. Meanwhile, projects falling short of generation licenses, land acquisition, financial closure, or failing to cross the 25 per cent physical milestone have been grouped under Category 'C', whereas Category 'D' covers projects with canceled licenses or unfulfilled mandatory duties.
Category 'B' projects will undergo regular monitoring by the NEA's Power Trade Department and face potential reclassification within six months if necessary. Private developers have long advocated for these extensions, citing unavoidable delays such as administrative hurdles, land acquisition disputes, and transmission line bottlenecks.
