Introduction to Corporate governance

Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. The principal stakeholders are the shareholders, management, and the board of directors. Other stakeholders include employees, customers, creditors, suppliers, regulators, and the community at large.

Corporate governance is a multi-faceted subject. An important theme of corporate governance is to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problem. A related but separate thread of discussions focuses on the impact of a corporate governance system in economic efficiency, with a strong emphasis on shareholders' welfare. There are yet other aspects to the corporate governance subject, such as the stakeholder view and the corporate governance models around the world (see section 9 below).

There has been renewed interest in the corporate governance practices of modern corporations since 2001, particularly due to the high-profile collapses of a number of large U.S. firms such as Enron Corporation and MCI Inc. (formerly WorldCom). In 2002, the U.S. federal government passed the Sarbanes-Oxley Act, intending to restore public Definition

In A Board Culture of Corporate Governance, business author Gabrielle O'Donovan defines corporate governance as 'an internal system encompassing policies, processes and people, which serves the needs of shareholders and other stakeholders, by directing and controlling management activities with good business savvy, objectivity, accountability and integrity. Sound corporate governance is reliant on external marketplace commitment and legislation, plus a healthy board culture which safeguards policies and processes'.

O'Donovan goes on to say that 'the perceived quality of a company's corporate governance can influence its share price as well as the cost of raising capital. Quality is determined by the financial markets, legislation and other external market forces plus how policies and processes are implemented and how people are led. External forces are, to a large extent, outside the circle of control of any board. The internal environment is quite a different matter, and offers companies the opportunity to differentiate from competitors through their board culture. To date, too much of corporate governance debate has centered on legislative policy, to deter fraudulent activities and transparency policy which misleads executives to treat the symptoms and not the cause.'[

It is a system of structuring, operating and controlling a company with a view to achieve long term strategic goals to satisfy shareholders, creditors, employees, customers and suppliers, and complying with the legal and regulatory requirements, apart from meeting environmental and local community needs.

Report of SEBI committee (India) on Corporate Governance defines corporate governance as the acceptance by management of the inalienable rights of shareholders as the true owners of the corporation and of their own role as trustees on behalf of the shareholders. It is about commitment to values, about ethical business conduct and about making a distinction between personal & corporate funds in the management of a company.” The definition is drawn from the Gandhian principle of trusteeship and the Directive Principles of the Indian Constitution. Corporate Governance is viewed as ethics and a moral duty.

Impact of Corporate Governance

The positive effect of corporate governance on different stakeholders ultimately is a strengthened economy, and hence good corporate governance is a tool for socio-economic development.

Role of Institutional Investors

Many years ago, worldwide, buyers and sellers of corporation stocks were individual investors, such as wealthy businessmen or families, who often had a vested, personal and emotional interest in the corporations whose shares they owned. Over time, markets have become largely institutionalized: buyers and sellers are largely institutions (e.g., pension funds, mutual funds, hedge funds, exchange-traded funds, other investor groups; insurance companies, banks, brokers, and other financial institutions).

The rise of the institutional investor has brought with it some increase of professional diligence which has tended to improve regulation of the stock market (but not necessarily in the interest of the small investor or even of the naïve institutions, of which there are many). Note that this process occurred simultaneously with the direct growth of individuals investing indirectly in the market (for example individuals have twice as much money in mutual funds as they do in bank accounts). However this growth occurred primarily by way of individuals turning over their funds to 'professionals' to manage, such as in mutual funds. In this way, the majority of investment now is described as "institutional investment" even though the vast majority of the funds are for the benefit of individual investors.

Program trading, the hallmark of institutional trading, averaged over 80% of NYSE trades in some months of 2007. (Moreover, these statistics do not reveal the full extent of the practice, because of so-called 'iceberg' orders. See Quantity and display instructions under last reference.)

Unfortunately, there has been a concurrent lapse in the oversight of large corporations, which are now almost all owned by large institutions. The Board of Directors of large corporations used to be chosen by the principal shareholders, who usually had an emotional as well as monetary investment in the company (think Ford), and the Board diligently kept an eye on the company and its principal executives (they usually hired and fired the President, or Chief Executive Officer— CEO).1

A recent study by Credit Suisse found that companies in which "founding families retain a stake of more than 10% of the company's capital enjoyed a superior performance over their respective sectorial peers." Since 1996, this superior performance amounts to 8% per year. Forget the celebrity CEO. "Look beyond Six Sigma and the latest technology fad. One of the biggest strategic advantages a company can have, [Business Week has found], is blood lines." In that last study, "BW identified five key ingredients that contribute to superior performance. Not all are qualities unique to enterprises with retained family interests. But they do go far to explain why it helps to have someone at the helm— or active behind the scenes— who has more than a mere paycheck and the prospect of a cozy retirement at stake." See also, "Revolt in the Boardroom," by Alan Murray.

Nowadays, if the owning institutions don't like what the President/CEO is doing and they feel that firing them will likely be costly (think "golden handshake") and/or time consuming, they will simply sell out their interest. The Board is now mostly chosen by the President/CEO, and may be made up primarily of their friends and associates, such as officers of the corporation or business colleagues. Since the (institutional) shareholders rarely object, the President/CEO generally takes the Chair of the Board position for his/herself (which makes it much more difficult for the institutional owners to "fire" him/her). Occasionally, but rarely, institutional investors support shareholder resolutions on such matters as executive pay and anti-takeover, aka, "poison pill" measures.

Finally, the largest pools of invested money (such as the mutual fund 'Vanguard 500', or the largest investment management firm for corporations, State Street Corp.) are designed simply to invest in a very large number of different companies with sufficient liquidity, based on the idea that this strategy will largely eliminate individual company financial or other risk and, therefore, these investors have even less interest in a particular company's governance.

Since the marked rise in the use of Internet transactions from the 1990s, both individual and professional stock investors around the world have emerged as a potential new kind of major (short term) force in the direct or indirect ownership of corporations and in the markets: the casual participant. Even as the purchase of individual shares in any one corporation by individual investors diminishes, the sale of derivatives (e.g., exchange-traded funds (ETFs), Stock market index options, etc.) has soared. So, the interests of most investors are now increasingly rarely tied to the fortunes of individual corporations.

But, the ownership of stocks in markets around the world varies; for example, the majority of the shares in the Japanese market are held by financial companies and industrial corporations (there is a large and deliberate amount of cross-holding among Japanese keiretsu corporations and within S. Korean chaebol 'groups'), whereas stock in the USA or the UK and Europe are much more broadly owned, often still by large individual investors.

Parties to corporate governance

Parties involved in corporate governance include the regulatory body (e.g. the Chief Executive Officer, the board of directors, management, shareholders and Auditors). Other stakeholders who take part include suppliers, employees, creditors, customers and the community at large.

In corporations, the shareholder delegates decision rights to the manager to act in the principal's best interests. This separation of ownership from control implies a loss of effective control by shareholders over managerial decisions. Partly as a result of this separation between the two parties, a system of corporate governance controls is implemented to assist in aligning the incentives of managers with those of shareholders. With the significant increase in equity holdings of investors, there has been an opportunity for a reversal of the separation of ownership and control problems because ownership is not so diffuse.

A board of directors often plays a key role in corporate governance. It is their responsibility to endorse the organization’s strategy, develop directional policy, appoint, supervise and remunerate senior executives and to ensure accountability of the organization to its owners and authorities.

The Company Secretary, known as a Corporate Secretary in the US and often referred to as a Chartered Secretary if qualified by the Institute of Chartered Secretaries and Administrators (ICSA), is a high ranking professional who is trained to uphold the highest standards of corporate governance, effective operations, compliance and administration.

All parties to corporate governance have an interest, whether direct or indirect, in the effective performance of the organization. Directors, workers and management receive salaries, benefits and reputation, while shareholders receive capital return. Customers receive goods and services; suppliers receive compensation for their goods or services. In return these individuals provide value in the form of natural, human, social and other forms of capital.

A key factor is an individual's decision to participate in an organization e.g. through providing financial capital and trust that they will receive a fair share of the organizational returns. If some parties are receiving more than their fair return then participants may choose to not continue participating leading to organizational collapse.

Principles

Key elements of good corporate governance principles include honesty, trust and integrity, openness, performance orientation, responsibility and accountability, mutual respect, and commitment to the organization.

Of importance is how directors and management develop a model of governance that aligns the values of the corporate participants and then evaluate this model periodically for its effectiveness. In particular, senior executives should conduct themselves honestly and ethically, especially concerning actual or apparent conflicts of interest, and disclosure in financial reports.

Commonly accepted principles of corporate governance include:

• Rights and equitable treatment of shareholders: Organizations should respect the rights of shareholders and help shareholders to exercise those rights. They can help shareholders exercise their rights by effectively communicating information that is understandable and accessible and encouraging shareholders to participate in general meetings.

• Interests of other stakeholders: Organizations should recognize that they have legal and other obligations to all legitimate stakeholders.

• Role and responsibilities of the board: The board needs a range of skills and understanding to be able to deal with various business issues and have the ability to review and challenge management performance. It needs to be of sufficient size and have an appropriate level of commitment to fulfill its responsibilities and duties. There are issues about the appropriate mix of executive and non-executive directors.

• Integrity and ethical behavior: Ethical and responsible decision making is not only important for public relations, but it is also a necessary element in risk management and avoiding lawsuits. Organizations should develop a code of conduct for their directors and executives that promotes ethical and responsible decision making. It is important to understand, though, that reliance by a company on the integrity and ethics of individuals is bound to eventual failure. Because of this, many organizations establish Compliance and Ethics Programs to minimize the risk that the firm steps outside of ethical and legal boundaries.

• Disclosure and transparency: Organizations should clarify and make publicly known the roles and responsibilities of board and management to provide shareholders with a level of accountability. They should also implement procedures to independently verify and safeguard the integrity of the company's financial reporting. Disclosure of material matters concerning the organization should be timely and balanced to ensure that all investors have access to clear, factual information.

Issues involving corporate governance principles include:

• internal controls and internal auditors

• the independence of the entity's external auditors and the quality of their audits

• oversight and management of risk

• oversight of the preparation of the entity's financial statements

• review of the compensation arrangements for the chief executive officer and other senior executives

• the resources made available to directors in carrying out their duties

• the way in which individuals are nominated for positions on the board

• dividend policy

Nevertheless "corporate governance," despite some feeble attempts from various quarters, remains an ambiguous and often misunderstood phrase. For quite some time it was confined only to corporate management. That is not so. It is something much broader, for it must include a fair, efficient and transparent administration and strive to meet certain well defined, written objectives. Corporate governance must go well beyond law. The quantity, quality and frequency of financial and managerial disclosure, the degree and extent to which the board of Director (BOD) exercise their trustee responsibilities (largely an ethical commitment), and the commitment to run a transparent organization- these should be constantly evolving due to interplay of many factors and the roles played by the more progressive/responsible elements within the corporate sector. John G. Smale, a former member of the General Motors board of directors, wrote: "The Board is responsible for the successful perpetuation of the corporation. That responsibility cannot be relegated to management."[5]

In India, a strident demand for evolving a code of good practices by the corporation, written by each corporation management, is emerging.

Mechanisms and controls

Corporate governance mechanisms and controls are designed to reduce the inefficiencies that arise from moral hazard and adverse selection. For example, to monitor managers' behavior, an independent third party (the external auditor) attests the accuracy of information provided by management to investors. An ideal control system should regulate both motivation and ability.

Internal corporate governance controls

Internal corporate governance controls monitor activities and then take corrective action to accomplish organizational goals. Examples include:

• Monitoring by the board of directors: The board of directors, with its legal authority to hire, fire and compensate top management, safeguards invested capital. Regular board meetings allow potential problems to be identified, discussed and avoided. Whilst non-executive directors are thought to be more independent, they may not always result in more effective corporate governance and may not increase performance.[6] Different board structures are optimal for different firms. Moreover, the ability of the board to monitor the firm's executives is a function of its access to information. Executive directors possess superior knowledge of the decision-making process and therefore evaluate top management on the basis of the quality of its decisions that lead to financial performance outcomes, ex ante. It could be argued, therefore, that executive directors look beyond the financial criteria.

• Internal control procedures and internal auditors: Internal control procedures are policies implemented by an entity's board of directors, audit committee, management, and other personnel to provide reasonable assurance of the entity achieving its objectives related to reliable financial reporting, operating efficiency, and compliance with laws and regulations. Internal auditors are personnel within an organization who test the design and implementation of the entity's internal control procedures and the reliability of its financial reporting.

• Balance of power: The simplest balance of power is very common; require that the President be a different person from the Treasurer. This application of separation of power is further developed in companies where separate divisions check and balance each other's actions. One group may propose company-wide administrative changes, another group review and can veto the changes, and a third group check that the interests of people (customers, shareholders, employees) outside the three groups are being met.

• Remuneration: Performance-based remuneration is designed to relate some proportion of salary to individual performance. It may be in the form of cash or non-cash payments such as shares and share options, superannuation or other benefits. Such incentive schemes, however, are reactive in the sense that they provide no mechanism for preventing mistakes or opportunistic behavior, and can elicit myopic behavior.

External corporate governance controls

External corporate governance controls encompass the controls external stakeholders exercise over the organization. Examples include:

• competition

• debt covenants

• demand for and assessment of performance information (especially financial statements)

• government regulations

• managerial labour market

• media pressure

• takeovers

Systemic problems of corporate governance
• Demand for information: A barrier to shareholders using good information is the cost of processing it, especially to a small shareholder. The traditional answer to this problem is the efficient market hypothesis (in finance, the efficient market hypothesis (EMH) asserts that financial markets are efficient), which suggests that the small shareholder will free ride on the judgments of larger professional investors.
• Monitoring costs: In order to influence the directors, the shareholders must combine with others to form a significant voting group which can pose a real threat of carrying resolutions or appointing directors at a general meeting.
• Supply of accounting information: Financial accounts form a crucial link in enabling providers of finance to monitor directors. Imperfections in the financial reporting process will cause imperfections in the effectiveness of corporate governance. This should, ideally, be corrected by the working of the external auditing process

Project Planning (Useful queries for all)

Project Planning (Useful  queries for all)

1. Please describe the features of a project?

2. What do you mean by project management? And draw the project life cycle.

3. What do you understand by project monitoring and project termination?

4. What are the project models? Describe them

5. What do you understand by the project planning? And describe the categories of project planning.

6. Please explain the major components of the planning phases

7. what do you understand by the work breakdown structures (wBS0? Please explain with example

8. What is project organization and explain the base of project organization?

9. What are the advantages and disadvantages of pure project organization?

10. What is the role of project manager? And explain the selection criteria of project manager?

11. What do you understand by direction in the project monitoring? Pls explain the direction guidelines

12. pls explain the project coordination with suitable example in the project monitoring

13.  In the project monitoring, what you understand by the project control and explain its objectives.

Potential of Hydropower in Nepal

Introduction
Hydro-power can deliver multi-pronged benefits in Nepal.  The development of hydropower can ensure energy Security, provide food security and health security and, in addition, preserve environment, reduce Greenhouse gas emission and create entertaining facilities. It can also provide access to the sea for a Land-locked country. With the world wide recognition, from World Summit on Sustainable Development to Bonn and Beijing Renewable Conferences through Third World Water Forum, that hydro-power is the Clean and renewable source of energy, the exploitation of hydro-power is going to be a major activity to meet the Millennium Development Goal. One of the important benefits that come out of the construction of dams for hydro-power generation is flood control. In many cases, this benefit cannot be quantified in its totality; it is, however, a significant One as it saves precious life and resources. The construction of a storage hydro project, if properly executed on the basis of mutually agreed concept, Can be instrumental in maintaining peace between neighboring  countries.
Socio-economic system of Nepal
Nepal is one of the most populated mountainous Countries in the world with the population density of 175 people per square kilometer. Basically it is a Country based on an agrarian economy with about 80% of population engaged in agriculture. This sector Contributes 38% to the national economy, which Translates into 2.48% in agricultural growth, whereas Non-agricultural growth is registered at 10.44%. The Heavy pressure is on agriculture and natural resources To support the growing population. The annual per Capita GDP is estimated at USD 438. The human Development Indicator stands at 0.504. The life Expectancy at birth is reported to be about 63 years And infant mortality is recorded at 69% in 2001. The Proportion of electrified households is 40%. The government has set a target of achieving Annual economic growth of 8.3% by 2016/17, out of which 5% growth is projected in the agriculture sector and 9.7% in non-agriculture sector. The population below the poverty line will be reduced to 10%, with
The growth reduced to 1.5%. About 1700 thousand Hectares will be brought under irrigation by the same year. Nepal is a land locked country, a factor that Dominates the development scenario.
Water resources use in Nepal
Nepal is a land limited but water rich country. Its 6,000 rivers generates 224 billion cubic meter of Surface run-off annually, which translates into more Than 9,000 m3 of water per capita. This is far more Than internationally recognized norm of 1,750 m 3 per Capita. However, because of the spatial and temporal Variation in the availability of water, a few months And a few areas of the country are still water deficit. The uniform distribution of water over its territory is essential to avoid water stress situation this objective Is met through adoption of Integrated Water Resources Management. The major components of Integrated use is hydropower, irrigation, water Supply and flood control and, to lesser extent, inland Navigation, recreational use and fisheries.
Hydropower – the way to poverty alleviation
The rivers of Nepal with glacier, snow and monsoon Feeding coupled with steep gradient, are estimated to Have the potentiality of generating 83,000 MW of Electricity. (But new some report claims 200,000 MW). With the load factor of 52%, this translates Into 1,500 kWh per capita of electricity for the present Population. If this potentiality is fully exploited and Sold at an average rate of six cents per kWh, the Resulting revenue generated will be to the tune of 23 Billion USD per annum. Out of this theoretical Potentiality, 43,000 MW have been proven to be Technically and economically attractive through Sound engineering studies.
Without entering into the export Market, the benefits from hydro generation cannot Be maximized. In the regional market, hydropower is going to play a significant role in addressing concern for energy security. Hydropower, being capable of generating cheap and reliable peak energy, Contributes to the stability of the system by stabilizing The supply frequency. Nepal and India have been traditional power Exchange countries. To sustain India’s rate of GDP Growth requires considerable addition of electricity. The electricity deficit in India, particularly the peak deficit is significant at 18%. As reported earlier out of the 43,000 MW 0f proven capacity of Nepal, 22,000 MW will come from storage Plants. Development of these schemes will maximize the benefit of Nepal Hydropower. In view of the mutual benefits to both Nepal and India and the need to mobilize private financial resources, India and Nepal have initialed a bi-national Power Trade Agreement
Irrigation – assure food security
As earlier mentioned, Nepal is basically an agriculture Country with its contribution to the economy Standing at 38% of GDP. Nepal has 2.64 million Hectares of cultivable land, of which only 1.76 million Ha (66%) are irrigable. Irrigation facilities are Available only for 60% of irrigable land, though less Than one third of that land has round-the-year Irrigation facility. This limited facility for irrigation And resulting unsatisfactory cropping intensity Resulted, in 2003, in the production of 7.2 million Tons of agricultural products—hardly sufficient to meet The minimum requirement of the nation.  The Nepal Government has embarked upon the Plan to increase the total year-round irrigated area. Fortunately, the resource Generation capacity of this sector is satisfactory and If the capital costs are shared between irrigation and power in a multipurpose development it will not only help address the problem of the irrigation sector but will also maximize the profits from hydropower Development. Nepal has a number of projects that Can meet this objective, such as Bagmati, Kankai, Sapt Kosi, Sunkosi, Karnali Bheri-Babai, Mahakali, etc.
Flood control – dropping human suffrage
One of the significant benefits that a dam construction Gives is the flood control. This advantage becomes More important in the area where flash floods occur Or the rivers are fed with monsoon rain. In Nepal Floods usually occur because of the monsoon Precipitation, glacial lake outbursts, cloud outbursts And coincidence of monsoon with increased base flow From snow and glacier melt. The damage and loss of Living beings and assets are tremendous. There are Many trans-boundary rivers that traverse from Nepal Through India to Bangladesh causing extensive Damage in multiple countries. One of Nepal’s eastern Rivers, the Kosi, is called ‘the sorrow of Bihar’, a Populace state in northern India, because of the trail Of devastation it leaves in Bihar every year after Monsoon. Studies conducted So far have identified about thirty reservoir sites in Nepal. The total effective water holding capacity of These reservoirs created by storage dam has been Estimated to be about 77 billion m. Nepal is divided into five hydrological regions:
Mahakali River Basin, Karnali River Basin, Gandak River Basin, Sapt- Kosi River Basin   and Southern River Basin. The holding capacity of each of these basins is given in Table: 1 Holding Capacity of reservoirs in each basin
Basin Holding Capacity of Reservoir
(million cubic meters) Holding potential of Monson Runoff (%)
Mahakali 6,040 43.2
Karnali 34,243 123.7
Gandak 17,830 55.1
Sapta Koshi 13,760 44.6
Southern River 5,221 92.9
Drinking water and sanitation – assure health Security
Nepal is water rich. However its surface run-off Heavily depends upon the monsoon, which is limited To four months a year. Although it is a small country With an area of 144,000 km2, the spatial distribution Of run-off is uneven. Therefore the inter-basin transfer Of water is necessary to meet the water needs of all Regions of the country. Inter-basin transfer requires Construction of dams to divert the water to water Conveyance system. Drinking water and sanitation services are basic Needs of the population. At present around 50% of Population has access to these services. By 2007, this Service will be extended to 80% of population it is Envisaged that by 2012, 90% population will have Access to water supply and basic sanitation facilities.  100% of the population will have these facilities by 2017.
Hydropower and cost of imported energy
Nepal does not have any fossil fuel reserve or coal Mining. Technological development of the country does not allow development of nuclear power. The development of alternative energy such as solar or wind is also limited due to the cost involved in such development. Hence, for all commercial energy needs, Nepal has to depend either on imported fossil fuels or indigenous hydropower. The industrial, transportation and urban household energy needs are predominantly met by imported fuel.  Hydropower has been exploited only in a limited quantity because of the lack of investment.  Meanwhile, the importation bill of fossil fuels is rising, not so much because of an increase in demand but because of skyrocketing prices. The demand on petroleum products has remained more or less at the same level, largely because of political instability, which has contributed to a slow down in? economic activities and, to some extent, to the increase in hydropower generation. However, the price of petroleum products has more than doubled in the past decade (see Table 2).
Table 2: Importation of fuel and fuel bill of Nepal
Year Imported Quantum in KL Amount in USD
1999/2000 877856 121 million
2000/01 941914 190 million
2001/02 896324 241 million
2002/03 890,609 312 million
2003/04 879,455 313 million
2004/05 n/a 291 million

Topographically, Nepal is brick shaped with east west prolongation and north-south width presents a narrow strip with elevation differences of more than 8,000 m within a narrow width of about 200 kms. If Nepal develops a transportation system run by electricity generated from hydropower, it can save substantial portion of petroleum product importation bill of USD 138 million. This is 23% of annual export. A transportation system that could bring about this benefit could be based on hydroelectricity driven east-west railway networks, north-south cable cars and inter- and intra-city tramways and trolley buses.
Environment benefit from hydropower
World climate change has been a phenomenon of global concern. One of the major agents of climate change has been the greenhouse gas (GHG) emission by various powers generating plants. After the Kyoto protocol signed by 134 countries, it has been the obligation of the each signatory country to help reduce the emission of GHG within a certain period. Globally it is expected that GHG emissions will be reduced by 2010 by 10% from the present level. To meet this international obligation, a new kind of trade—Carbon Trade—has started through Clean Development Mechanism (CDM). Hydropower, being not related with the emissions-related environmental concerns and being the cleanest source of power generation, not only helps the environment but also generates revenue by entering into this trade, thus maximizing the benefit.
Hydropower and poverty alleviation
In a country which is hydropower rich, poverty Alleviation hinges on the development of this Resource. The potential impact is astonishing in a Small country with no competitive source on income Generation. In Bhutan, for example, a country of about Half a million population, the development of Hydropower has been dramatically changed by the Construction just two hydropower plants with Combined capacity of 1,380 MW. As a result, it is Expected that the per capita income will go up from USD 760 to 1,320. In Nepal, the impact of hydropower Development may not be that dramatic, but it has been established that the hydropower sector is the driving Sector in economic development and a major Resource to alleviate poverty. A macro-economic Study has concluded that in order to eradicate Absolute poverty in households, the country needs To register 8% economic growth rate. This will help to Bring the level of percentage of population below Poverty line to 10% and by 2027 there will be no Household in absolute poverty. No other sector of Economy other than hydropower is in a position to Help attend to this goal, as the required quantum of 25,000+ MW by 2027 that need to be developed to Achieve this target is ready for exploitation at short Notice and the market are available. Thus, the solution Of poverty alleviation is closely linked with Hydropower development in Nepal.
Conclusion and Recommendations
Nepal is a land limited but water rich country. Its 6,000 rivers generates 224 billion cubic meter of Surface run-off annually, which translates into more Than 9,000 m3 of water per capita. This is far more Than internationally recognized norm of 1,750 m 3 per Capita. Nepal does not have any fossil fuel reserve or coal Mining. Technological development of the country does not allow development of nuclear power. The development of alternative energy such as solar or wind is also limited due to the cost involved in such development. Hence, for all commercial energy needs, Nepal has to depend either on imported fossil fuels or indigenous hydropower. Imported fossil fuel needs lots for foreign currency and reserve is also limited for future. So for the real development of our country we have to develop the Hydropower enrgy. which cheap, clean and is our own resource. Based on the recommendation and statement of Third World Water Forum on Water and Energy, some Pertinent observations can be made:
I. Water and energy must be integrated as far as Possible to maximize the benefit of Hydropower development. Multipurpose Infrastructures offer the advantage of shared Cost and benefit.
II. Hydropower contributes to meeting both Water and energy needs.
III. Hydropower with storage reservoir is the most flexible energy technology in terms of Power generation; it can generate power exactly when it is needed, providing back-up For intermittent sources such as wind power And allowing thermal plants to operate at their Best efficiency, thus further reducing Greenhouse gas emissions.