101 MW Tamor-Mewa Hydroelectric Project (TMHP) of Taplejung district is a well-debated power project in Nepal, next to West Seti, Arun-III and Upper Karnali. Geographically, TMHP falls in Khokling and Phongling village development committees, both in the self-declared Limbuwan Autonomous State. The project has been as issue of power-debate since a year when the Ministry of Water Resources (MoWR) refused for renewal of the survey licence, which was issued with a validity of 18 months. The Ministry on January 22 last year decided not to extend the term of the license stating that the promoter company, Spark Hydroelectric Company Limited (SHCL), did not make significant and qualitative progress on the project as per the conditions mentioned the license.
Tamor-Mewa
The interesting aspect regarding this project is that water from Tamor River and Mewa River will be technically merged to generate 11 MW additional power than the individual potentiality of the river. The preliminary studies have shown that 18 MW of electricity can be feasibly exploited from Mewa River while 72 MW from Tamor River is technically feasible. The water combination from both the rivers will add 11 MW to generation capacity of Tamor River.
Unlike in other projects, TMHP will have two powerhouses, one having a net capacity of 18 MW and another with 83 MW capacity. Water from 18 MW powerhouse will be diverted through a 5.5 kilometre long diversion tunnel into Tamor River.
The chairperson and director of SHCL, Bhanendra Kumar Limbu, said the company has so far spent around Rs. 80 million on the project, of the total investment of Rs. 15 billion. SHCL is working for 55 percent foreign direct investment and 45 percent domestic investment. The project has also promised to extend 10 percent share to the affected locals.
License issue
The MoWR issued the survey license to Spark Hydroelectric Company Limited on March 20, 2006 for a period of one and a half year. According SHCL, of the 540 days granted for the survey, 333 days remained as Nepal Bandh due to various uncertainties and the company could not work as expected. Thus, the company could work only for 207 days, which is not even seven months. Even during such harsh timings, the company updated its progress to Department of Electricity Development (DoED) as required by the terms and conditions in the survey license. 
However, on January 22, 2008, the MoWR refused to renew the survey license despite the deposition of Rs. 1 million renewal charge and the required documents. According to the company’s statement which appeared after the rejection from the ministry, Imex International applied for a license for the same project on September 7, 2007.
The company claims that the progress on the project could not be achieved due to the continuous bandh in the eastern region of Nepal. One of the provisions, 7(d), in the survey license requires the company to furnish the appropriate reasons in case of seeking extension of the license period. The company has been trying a lot to convince the ministry for license renewal. On September 29 last year it even submitted an application along with 3,620 signatures of the affected locals, law makers and civil society representatives from the district to the MoWR and officially met Minister for Water Resources.
Such a public pressure in allowing the hydropower project goes ahead must be a lesson to project-affected locals of power projects like 750 MW West Seti in the Far Western Development Region, 402 MW Arun-III in Sankhuwasabha district and GMR promoted 300 MW Upper Karnali. Several groups are quite active in these areas and do not want the hydel projects to kick-start.
Conclusion
The Electricity Act 2049 has set enough provisions for granting renewal of project’s license for power projects like Tamor-Mewa, viewing its inescapable situations which crippled Nepal, especially the Eastern Development Region and the Terai districts, parlaying everything for months.
The project having construction period of five years, will provide employment to around 1500 individuals. Besides the tax, annual royalty and share dividends, the region will have 19 kilometre long black-topped road and a concrete motorable bridge, which will join other villages beyond the Tamor River. The project, which has received the support and solidarity from the locals and other regional stakeholders, will be one of the development assets for the eastern region in the coming days when it starts commissioning.
Certainly, it is not a wise decision to make the investors suffer. The government must create congenial atmosphere to those who have come forward for developing hydroelectric projects, costlier among other development projects. It is the government, but not the investor, responsible to check bandh and other probable public obstacles. Also, the investors must work seriously towards accomplishing the project’s gaol. Renewing license a number of times citing inability to make financial closure is not a logical deal at all and such practices require immediate correction.
Therefore, both the MoWR and DoED must rethink of renewing the license of Tamor-Mewa including others viewing the legal provisions. It is not wise to paralyse the projects when the government is working with a vision to generate 10,000 MW of electricity by 2020.
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