IPPAN seeks conducive environment for investment

KATHMANDU: Independent power producers have demanded political leadership to put an end to the compulsion of dealing with seven ministries and 23 departments to develop a hydropower project.

During an interaction held at the Rastriya Swatantra Party (RSP) headquarters on Wednesday, Prakash Dulal, Deputy General Secretary of the Independent Power Producers Association of Nepal (IPPAN), said that existing policies related to forests and the environment were hindering the development of the hydropower sector. “Independent power producers are facing an unfavorable environment for the development of power plants. Additionally, there is a lack of coordination among ministries and challenges in land acquisition,” Dulal said, adding, “The existing land-holding ceiling of 75 ropanis for the hydropower projects and the lack of security for hydropower plants are other issues affecting the hydropower sector.”

Dulal also pointed out that the absence of provisions for country rating and hedging, which are crucial for attracting foreign direct investment, is impeding hydropower development in Nepal.

Also speaking on the occasion, Ganesh Karki, President of IPPA, said government laws are putting investments made by independent power producers at risk. “If we had solely relied on the government, we would be seeing power cuts for another 10 years. Independent power producers have contributed to approximately 80% of the electricity available in the grid,” added Karki.