The Indian wealthy and industrial conglomerate Adani Group has shown interest in constructing the ambitious 860 MW capacity Tila-1 and Tila-2 hydropower projects in Karnali Province, which have been stalled for years due to a lack of investment.
After SC Power Company, the promoter of the project, failed to secure investment, it initiated talks with the Adani Group through the controversial middleman Deepak Bhatta. Following this, the Adani Group expressed its interest in the project. However, this development has created a new wave in the energy sector.
The Electricity Regulatory Commission has confirmed the Adani Group's interest in the project. Chairman of the Electricity Regulatory Commission, Ram Prasad Dhital, stated that representatives from the Adani Group visited the Commission's office to gather information about the project.
"The Adani Group has shown interest not only in the Tila-1 and Tila-2 projects but also in the construction of the necessary transmission lines for power production and evacuation," Chairman Dhital told Nepalkhabar. "I found that the Adani Group is eager to build both the hydropower projects and the transmission line."
Recently, sources indicate that SC Power Company, the promoter of Tila-1 and Tila-2, has been directly negotiating with the Adani Group under the leadership of the controversial middleman Deepak Bhatta, who calls himself a businessman, while sidelining the Chaudhary Group.
Previously, the Chaudhary Group had lobbied to bring Adani into the Tila project, but no official agreement was reached between the two parties. The project promoters have also admitted that representatives of the Adani Group came to Nepal and expressed their intent to invest.
They have plans to sell the project for approximately $25 million but have indicated they are flexible on the price. "Negotiations are progressing positively, and we are confident of reaching an agreement soon," one promoter shared.
The major investors in SC Power Company, the promoter of Tila-1 and Tila-2, are Dr. Iman Singh Gurung and Harish Chandra Shah, with Lok Bahadur Pun also holding some shares. However, according to sources, middleman Bhatta has now taken control of the project, sidelining all these investors and is handling the deal.
Although the project has a power purchase agreement (PPA) with the Nepal Electricity Authority on a 'Take or Pay' provision, the promoter company SC Power has not been able to secure investment.
The company claims to have achieved financial closure, but due to the lack of investment, it has only been holding the license for the past two years by paying penalties to the Authority.
Meanwhile, news of the Adani Group planning to invest in 5,000 MW capacity projects in Nepal had excited the promoters of Tila.
The Adani Group's attraction to such large projects is also attributed to the Nepal-India Power Trade Agreement signed in 2014. There are plans to export the additional 760 million kilowatt-hours of energy generated from the Tila project to India.
Located in Kalikot district, these projects are expected to be a 'game changer' for the economic development of Karnali Province.
However, due to the maneuvering of middlemen and the promoters' failure to secure investment, such important projects have been limited to paper for years.
For the project to succeed, strong and reliable investment, a time-bound action plan from the promoters, and effective coordination from government bodies seem essential.
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