Kathmandu, May 7
Minister for Energy, Water Resources and Irrigation Barshaman Pun has warned that completing the normal processes alone will no longer suffice to be granted generation licence for hydropower plants.
“Only genuine developers will be granted the generation licence from now on,” said Minister
Pun, adding that risk-averse investors should refrain from investing in hydropower sector and should rather invest in other low-risk sectors.
Speaking during the first anniversary of the Nepal Electricity Regulatory Commission (NERC) today, Pun said, “Those who cannot initiate work the day after getting the generation licence
are better off investing in another sector. There are many other areas for investment.”
He further said that the government welcomes genuine investors who are competent and focused on delivering quality results. “We will facilitate honest investors and clean investment in a transparent manner.”
Stating that the government has regulated banks, insurance firms and cooperatives in the past due to the problem of public investment being drained by unscrupulous developers, he informed that the ministry has a plan to prevent bad investment in the hydropower sector by setting uniform
applicable standards for the betterment of the overall sector.
He also said that the government is trying to promote Nepali electricity in the international market. “The private sector should now abandon the mentality of selling electricity only to
Nepal Electricity Authority as they are able to move towards finding an external market themselves.”
He further informed that the new Electricity Act, which includes provisions that have addressed the demands of the private players to make the power sector more competitive, is under consideration at the Parliament.
Speaking at the programme, Dilli Bahadur Singh, chairman of NERC, said the regulatory commission will play a crucial role in making the electricity service more effective, reliable and competitive in the future.