Government authorises Investment Board to hold talks with investors

Government authorises Investment Board to hold talks with investors

The government has authorised Investment Board of Nepal to hold negotiation with investors for the development of transmission lines for hydropower projects above 500MW capacity. The meting chaired by Prime Minister and chairman of the board, here today, also mandated the board today to negotiate only for electricity generation. However, the hydropower projects like Upper Karnali have to construct transmission lines on their own The board is currently holding negotiations with three foreign developers for Power Development Agreement (PDA) that also includes transmission line "The board has requested both generation and transmission line construction one project,” said the board's chief executive Radesh Pant. The meeting, chaired by Prime Minister Sushil Koirala, has also agreed in principle to offer tax exemptions to hydropower projects that start electricity generation within 2018. Likewise, the meeting agreed to waive 100 per cent income tax for 10 years for hydropower projects that start generating electricity within 2018. "Income tax exemption will be 50 per cent for the next five years. The meeting also directed the Tourism, Physical Infrastructure and Transport Ministries and the board to come up with common understanding within a week on three key projects, Kathmandu-Tarai Fast Track, Tribhuwan International Airport upgradation and Second International Airport (SIA) The meeting also decided to form a joint study panel to recommend pending issues of grants, tax concession on import of construction materials and income tax waiver for a certain time to projects of above 500 MW capacity.
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