Hydropower for economic progress, says PM Dahal

Kathmandu / Dec 15: Prime Minister Pushpa Kamal Dahal ‘ Prachanda’ has said the government has introduced some of the ambitious projects for the development of hydropower sector.

While inaugurating Power Summit 2016 organised under the theme of 10,000 MW in 10 Years by the Independent Power Producers’ Association, Nepal (IPPAN) here today, he said the government has announced National Energy Crisis Reduction and Development Decade 2016-2026, with the projection that there will be a demand of 10,000 mw electricity after 10 years.

The government is encouraging private sector interested in investing in energy sector, he said, adding that it wants to work in collaboration with the private sector in the power production and construction of transmission line, he said.

“The Government has accorded high priority to the timely completion of the designated projects of national pride that includes some of the key hydro-power projects, such as Upper Tamakoshi and Chameliya,” the PM added.

He went on to say the government has accelerated monitoring of those projects, removing impediments in the implementation process, and pronounced scheme of reward and incentives for those involved in the implementation, should the project comes into completion before the targeted deadline.

We are promoting multi-purpose power projects with the view of bringing in technical expertise, attracting investment, creating job opportunities, and emphasizing energy security which would also reinforce environment friendly development approach, he said.

Nepal and India have signed power trade agreement and committed to take measures to operationalize the agreement. Government has taken initiative to engage diplomatically with the Government of India with a view to removing constraints arising from recently issued power purchase guidelines in India, according to the Prime Minister.

He added the timely completion of transmission lines and hydro-power generating projects is important for smooth distribution of power and avoiding load-shedding when the life of the people is severely affected by the power crisis.

The government has emphasised on the expeditious implementation of major power development projects specifically Pancheswar, Upper Karnali, and Arun III. It is committed to support both the domestic private sector and foreign investors both through policy of encouraging investment and facilitating the implementation of projects, the PM informed the Summit.

“Political stability is a must for attaining economic progress for any country,” he asserted.

Also speaking on the occasion, Energy Minister Janardan Sharma insisted on the slash in the interest of banking loans to find a ground for boosting up investment in hydropower sector.

The existing provision of ‘take or pay’ incorporated in the power purchase agreement under which the Nepal Electricity Authority (NEA) shall purchase power produced by the private sector only in need is going to be replaced by the provision of ‘take and pay’ which compels the NEA to compulsory purchase the power. The government hopes that such provision will encourage private sector to invest in hydropower, prompting the level of power generation.

Power producer companies will get an exemption of Rs 5 million in vat per megawatt which will be a great relief for power producers, he added.

Around 500 representatives from Nepal, India, China, Bangladesh, Norway and Australia are taking part in the Summit. RSS