Government Prioritizes Large Hydropower Projects: Energy Minister Khadka

Minister for Energy, Water Resources, and Irrigation, Deepak Khadka, has stated that the government has prioritized the construction of large and reservoir-based hydropower projects. Speaking at today’s session of the National Assembly during discussions under the "Appropriation Bill 2082", the minister said that projects such as Karnali, Upper Karnali, Bheri, and Jagadulla are being pushed forward with investment mobilization and construction commitments through the government’s annual policies and programs.

He highlighted that the Upper Karnali Hydropower Project has been taken forward under a Public-Private Partnership (PPP) with India's GMR Group, while the Phukot Karnali Project is under a joint investment agreement with NHPC Limited of India. However, due to an ongoing Supreme Court case, the implementation of Phukot Karnali has been kept on hold.

Minister Khadka also informed that the proposed Mugu Karnali reservoir-based project, which will benefit Bajura of Sudurpaschim and Kalikot, Humla, Jumla, and Mugu of Karnali Province, is in the final stages of feasibility study. The Environmental Impact Assessment (EIA) report is currently being prepared.

The Budhigandaki Hydropower Project will be developed under a PPP model, and the government’s capital investment in the project will be converted into equity. A strong financial structure and clear implementation framework are being prepared to begin the construction process.

The minister further added that the "Take and Pay" electricity purchase provision, as mentioned in the upcoming fiscal year’s budget, is being revised. A formal request has already been sent to the Ministry of Finance to amend this provision to ensure power purchase agreements for run-of-river projects and small-scale hydropower projects up to 10 MW.

Minister Khadka stated that the energy sector is the backbone of national development and emphasized that Nepal aims to produce 28,500 MW of electricity by 2035. To meet this goal, the government has adopted an energy mix policy and set a target to expand transmission infrastructure to 17,446 circuit kilometers with a substation capacity of 40,000 MVA.

He also addressed the damages caused by floods and landslides last year, stating that the ministry is coordinating with relevant agencies for reconstruction. A master plan for sustainable operation and management of small and micro-hydropower projects is being prepared jointly by the Nepal Electricity Authority and the Alternative Energy Promotion Center.

Minister Khadka emphasized the importance of small canals and irrigation systems for food security in rural areas and stated that these have also been prioritized in the budget. He added that integrated river basin resource management and disaster risk reduction programs are underway in hilly and Himalayan regions.

Regarding recent power cuts, he clarified that increased production during the monsoon and high load on transmission lines has led to load management issues, but there is no shortage of electricity in Nepal. Power is even being exported to India, and interruptions are only due to technical issues like storms, lightning, and transmission failures.