Supreme Court order against extending term of GMR Upper Karnali Hydropower Limited in Nepal

Nepal’s Supreme Court on Thursday issued an interim order and asked the government not to implement its decision to extend the term of India’s power giant GMR that is developing the Upper Karnali Hydropower Project.

The Cabinet had decided to extend GMR’s term by two years.

A single bench of Justice Ishwor Prasad Khatiwada issued the interim order against the Cabinet’s July 15 decision, according to the apex court sources.

The supreme court questioned why the Cabinet made the decision on the extension of the project when it was earlier decided by the Investment Board of Nepal.

The Investment Board of Nepal and GMR signed the project development agreement seven years ago with two years term.