Minister for Energy, Water Resources, and Irrigation, Deepak Khadka, has stated that the Electricity Bill will be passed by Parliament within a month. Speaking at the “IPPAN Developers Meet–2025” organized by the Independent Power Producers’ Association of Nepal (IPPAN) in Kathmandu on Monday, he made this announcement.

He mentioned that despite the constraints of the budget, the ministry is working with the goal of getting the Electricity Bill passed within a month. He also noted that in the past, the bill has been presented and withdrawn multiple times, but now the ministry is working day and night to finalize the Water Resources Bill before moving forward with the Electricity Bill.

He urged not to think that only developers will suffer losses when investments fail, emphasizing that public investments would also be affected and the government would bear responsibility for that. Minister Khadka stated that the government is not deviating from its goals and asserted that electricity is currently the main source of government revenue.

Minister Khadka said, “Even now, the Electricity Bill - which has been repeatedly tabled and withdrawn - is being worked on day and night, especially the one that was presented two years ago. As soon as the Water Resources Bill is finalized, we are fully focused on this. Although there are budget constraints, we are still working on the bill - day and night. This bill will be passed by Parliament within a month. If the Authority alone cannot handle it, then the government will have to look for alternatives. When investments fail, it may seem like only the developers suffer, but in reality, the general public also bears the loss, and the government takes responsibility for that. It is the government’s duty - one that must be fulfilled.”

Ganesh Karki, President of the Independent Power Producers’ Association of Nepal (IPPAN), stated that the Electricity Authority and the Ministry serve as guardians of energy producers. However, he noted that in recent times, the energy sector has been under attack from all sides.

He said that these attacks are aimed at preventing the energy sector from progressing. While the government and the private sector have been working together to end load-shedding through domestically generated electricity, some groups, he claimed, are moving forward with plans that promote ending load-shedding through imported electricity instead.

President Karki said, “The Electricity Authority and the Ministry are like our guardians. Right now, there are attacks coming from all directions. It feels as though there’s a deliberate attempt to prevent this sector from moving forward. It seems like there’s a plan to end load-shedding not through our own electricity, but through imported electricity. Progress is being blocked from every side. The issue with SEBON (Securities Board of Nepal) remains unresolved. The Ministry had sent correspondence requesting SEBON to allow the IPO issue, but now 43 projects are stalled. Meanwhile, another report has been submitted under what’s called the Khanal Commission.”

Mohan Dangi, Senior Vice President of the Independent Power Producers’ Association of Nepal (IPPAN), stated that while the government has been moving forward with a roadmap to develop the energy sector for national prosperity - and energy entrepreneurs have been fully committed to implementing that roadmap - the directive issued by the Public Accounts Committee in Poush 2080 (December 2023/January 2024), which barred companies with fewer than 90 network customers from issuing initial public offerings (IPOs), has caused significant setbacks and losses.

He also stated that the committee’s directive requiring 33 percent of shares held by the initial investors in hydropower companies to be retained until the bank loans are fully repaid has created further problems. He mentioned that currently, 43 companies are awaiting approval from the Securities Board of Nepal (SEBON) to issue initial public offerings (IPOs), and 7 companies are awaiting approval to issue rights shares.

He stated that the delayed energy projects with a total capacity of 994.52 megawatts have incurred a loss of approximately 8.1 billion rupees over 22 months, accounting for interest, project costs, and income from electricity sales. He mentioned that this is a crime committed by government agencies under the Government of Nepal against the energy sector.

He stated that if the government wants to achieve its set goals, it must immediately grant permission for the issuance of initial public offerings (IPOs) and rights shares.

Source: SingaDarbar