6.13.1 Royalty:
A hydropower generator shall pay the royalty as follows to Government of Nepal after the commencement of electricity generation.
(a) Internal consum ption project: Provided, however, that if the excess electricity is sold to the electricity distribution system from the electricity centre established for captive use, the energy royalty shall be charged on such electric power similar to a hydropower project with a capacity of more than 100 MW.
(b) Export-oriented hydropo wer project:
(c) The royalty rates referred to in clause (b) above shall be applied on the projects built on commercial basis with installed capacity up to 1000 MW. In the case of the projects with capacities up to 1000 MW and built on noncommercial basis, 15% (fifteen per cent) of electricity and energy shall be charged as royalty per annum on the basis of monthly power and energy generation capacity from the date of commencement of production.
(d) In the case of the export-oriented project with an installed capacity of more than 1,000 MW, the rate of royalty shall be settled by negotiations, also taking into account the grounds referred to in clauses (b) and (c).
(e) In the case of the hydropower projects which sell energy for internal consumption and exports the remaining energy, the energy fee equivalent to that chargeable for the export- oriented project shall be charged on the quantum of energy exported abroad.
(f) The royalty shall have to be paid in the same currency in which the exported electricity is sold.
Note: The following formula has been used herein to work out the energy royalty and the capacity royalty.
Energy royalty = (Generated energy-Self consumption) X Average Selling Price X Energy Royalty Rate.

6.13.2 Registration Fee:
A Registration fee of 0.0001 percent shall be charged for the registration of deeds related to a foreign loan for investment on projects concerning hydropower generation, transmission and distribution and on the registration of deeds conveyed to pledge the movable and immovable assets (such as shares of a project company) in the name of the foreign lender for such loan.