Kathmandu, June 16 -- Province 3 will receive the highest amount of royalties collected from the energy sector in the next fiscal year as the National Natural Resources and Fiscal Commission has set the formula for royalty sharing of natural resources among three tiers of the government.

Provision 3 will get an estimated Rs274.33 million in royalties.

In line with the Act for Inter-governmental Fiscal Arrangement, the federal government receives 50 percent of the royalties from hydropower while the provincial and local governments receive 25 percent each.

Out of the funds set aside for the local governments, the commission has fixed the hydropower royalty sharing mechanism, taking into consideration the project location (50 percent), a...