Ganesh Karki, president of the Independent Power Producers’ Association Nepal (IPPAN), has said that serious problems have emerged in the construction of hydropower projects due to the policy-level obstacles created by the government.

At a press conference held in Kathmandu on Wednesday, President Karki said that hydropower projects have been affected because they have not received permission to enter forest areas and cut down trees for the past 10 months.

According to him, many projects had already completed their Environmental Impact Assessments (EIA) as early as 2020, but they have still not received approval for implementation. “If we aren’t allowed to cut trees or even enter the project sites, how can we produce electricity?” Karki questioned.

According to Karki, the government has set a condition that agreements will be cancelled if hydropower producers fail to generate electricity within the stipulated time. However, he said that timely production has become impossible because of delays in obtaining necessary permits and infrastructure.

“The government says it won’t purchase electricity if we fail to produce it on time, but when it doesn’t even allow the projects to move forward, what can we do?” he said.

He said that despite holding repeated discussions with the Energy Minister and the Managing Director of the Nepal Electricity Authority, the problems have still not been resolved. He recalled that it has already been more than three years since they requested a two-year extension on RCUD-related issues.

Chairman Karki said that frequent changes in government have created policy instability, leaving investors in uncertainty. “Governments may change, but policies should not - we need stability,” he emphasized.

According to him, those who invest in hydropower do so for a period of 30–35 years, which makes long-term policies and regulatory stability essential. “As the morale of Nepali investors continues to decline, foreign investors have also begun to hesitate to invest in Nepal,” he said.

He emphasized that the government should work to boost the morale of domestic investors, expand electricity consumption, and prioritize the construction of transmission lines.

Lokpath