KATHMANDU: The Office of the Auditor General has recommended that the government introduce a legal framework to collect interest and penalties from hydropower companies that fail to pay royalties on time.
In its 62nd annual report summary, the Auditor General noted that many hydropower projects have not paid their required royalties to the government within the stipulated time, yet no penalties or interest have been levied. The report calls for legal provisions to enforce timely collection and to penalize delays.
According to the audit summary for the last fiscal year, a total of Rs 432.2 million in royalties remains unpaid by 161 hydropower companies.
The Auditor General stressed that despite the rise in pending dues, there is no record of fines or interest being imposed.
In the previous fiscal year 2079/80, pending royalties amounted to Rs 286.9 million, but the figure increased significantly in the subsequent year.
However, the government did collect Rs 4.44 billion in royalties from the 161 companies during the last fiscal year, the report said.
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