Minister for Energy, Water Resources and Irrigation Barshaman Pun today urged investors to invest in Nepal’s power sector without any hesitation, as he said the government was willing to purchase all the electricity produced by domestic hydropower projects.

His statement comes at a time when the government is all set to host the Nepal Investment Summit on March 29-30.

“The government expresses commitment to purchase all surplus power produced by Nepal-based hydropower projects,” the minister told a programme organised by the Department of Electricity Development today. “It is the responsibility of the government to explore markets to sell excess power,” he said.

The Bangladeshi government has expressed interest to purchase around 1,500 megawatts of power from Nepal. India too is keen on purchasing surplus electricity from Nepal, according to Pun. “However, we have not been able to raise electricity production accordingly,” said Pun, requesting investors to invest in the country’s hydropower sector.

Investment opportunity in Nepal’s hydropower sector is one of the major features of the upcoming Investment Summit. The government will showcase 12 hydropower projects among potential investors during the summit, according to the minister. The government is planning to showcase a total of 40 projects at the event.

Pun said the government was keen on adopting the take-or-pay model to purchase electricity from developers. Under this model, the state-owned power utility must purchase the quantum of electricity mentioned in the power purchase agreement or pay fines.