Does BKPC pay any royalty to the Government of Nepal?
The Royalty structures are prescribed in the Electricity Act. BKPC pays Energy Royalty on its energy sales to NEA at the rate of 2% for 15 years from the Commecrial Operation Date( COD) and at the rate of 10% thereafter – as per the Electricity Act. The Company pays on an average Rs 25.41 million annually. In the year 2009/10 the company paid royalty of Rs 28.23 million. Additionally, BKPC also pays Capacity Royalty on its installed capacity of 45 MW at the rate of Rs. 100,000/MW for 15 years from the COD and at the rate of Rs. 1,000,000/MW thereafter – as per the Electricity Act. This amounts to Rs. 4.5 million per annum till 2015/16 and Rs. 45 million thereafter.
