KATHMANDU: 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 which 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.
Later, the Cabinet decided to extend the term by another ten years up to 2023 as the project could not move forward as agreed upon in the contract.
Likewise, the board again had given one more year for financial closure for the Indian company.
Advocate Ratan Bhandari, working in Nepal's water resources and energy sector, had filed the writ petition at the SC demanding to nullify the government's decision to give more time for GMR.