NEA Reboots Khimti Ownership Talks as Nepal Pushes to Unlock a Long-Delayed Power Transition

The Nepal Electricity Authority (NEA) has taken another step toward resolving one of Nepal’s longest-running hydro ownership transitions by reconstituting a negotiation committee for the 60 MW Khimti Hydropower Project.

The new panel, led by board member Anshu Kiran Shahi, has been tasked with negotiating the share ownership transfer with the promoter company and discussing the terms that still stand in the way of a full handover. Those issues include a new power purchase agreement (PPA), royalty payments, and tax obligations.

Why Khimti matters

Khimti is not just another hydropower asset. It is one of Nepal’s landmark private-sector power projects and has long been expected to transition into a new ownership structure under earlier agreements. The project’s transfer has been delayed for years, despite prior commitments that made the handover part of the original arrangement.

According to earlier reporting, the project was supposed to transfer 50 percent share ownership to NEA, but the process stalled and remained incomplete. The plant has continued operating under interim arrangements while both sides remained tied up in negotiations.

What the new committee will do

The reconstituted committee is expected to restart detailed discussions on the legal, financial, and operational terms needed to complete the transfer. That includes aligning the share ownership structure, finalizing a revised PPA, and settling questions around royalties and taxes that could affect the final agreement.

By bringing in a fresh negotiation team, NEA appears to be signaling urgency. The move suggests that the utility wants to move beyond the prolonged procedural delays that have kept the project in limbo.

The bigger picture for Nepal’s power sector

The Khimti case highlights a broader challenge in Nepal’s energy sector: translating long-term project agreements into actual ownership transitions without years of delay. For a country that depends heavily on hydropower, clean transfer mechanisms and clear contractual execution matter as much as new generation capacity.

If the committee succeeds, the outcome could help clarify how similar legacy projects are handled in the future. It could also strengthen confidence that Nepal can manage complex public-private power arrangements with greater predictability.

What happens next

The key question now is whether the NEA committee can reach a practical settlement with the promoter company. The outcome will likely depend on how quickly both sides can agree on the revised commercial terms and close the remaining legal and tax questions.

For now, the reconstitution of the committee is a clear sign that Khimti’s long-delayed ownership transition is back on the table.