Minister for Energy, Water Resources, and Irrigation, Deepak Khadka, has said the development of the energy sector is not possible without the engagement of the private sector.

During his meeting with a delegation from the Independent Power Producers' Association, Nepal (IPPAN) at the Ministry today, he expressed commitment to addressing the private sector's concerns. He assured them that the proposed Electricity Bill would address their concerns.

The government is taking time to introduce the document in the parliament as it aims to incorporate the voices of the private sector in it, according to him.

He said the development cost of power projects has been higher in the absence of the discount on customs duty on machinery for maintenance. He stated that small projects are likely to be hit hard if the provision of the free distribution of electricity is implemented. It seems not possible to implement this provision, he added.

IPPAN President Ganesh Karki apprised the Minister that incidences of natural disasters, the shortage of explosive devices, hindrances in imports of goods due to the Russia-Ukraine War, and forest and land-related issues are among those hurdles in the development of the hydropower projects within the deadline, urging the government to extend the deadline for commercial production.

He demanded that power purchase agreements (PPAs) for nearly 13,000 megawatts of projects that have remained suspended be opened, hydrology penalties for all projects be removed bearing in mind of impacts of climate change in hydrology and issues related to forest and land be addressed by the government.