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Minister for Energy, Water Resources and Irrigation, Biraj Bhakta Shrestha, has said that policy-level reforms will be prioritised to accelerate the pace of development in the energy sector.

He made this remark during a meeting with the officials of the Nepal-India Chamber of Commerce and Industry (NICCI) on Friday.

Stating that there are significant opportunities along with challenges in the energy sector, Minister Shrestha said that the newly formed government is moving forward with policy reforms.

He emphasised that alongside energy production, equal focus must be given to increase domestic consumption of electricity.

He stressed the need for a realistic assessment of domestic and industrial demand for electricity.

Energy Minister Shrestha said that the energy sector should be linked with production to serve as a foundation for economic development, stating, “Energy is a raw material; it must be connected to products.”

The Minister said that the government’s role is to facilitate development and that policies will aim to encourage greater participation from the private sector.

He added that the energy sector will be advanced through a multidimensional approach by increasing private sector involvement.

Urging entrepreneurs not only to present problems but also solutions, he highlighted the importance of using “economic diplomacy” as a key tool for energy development.

Minister Shrestha said the government is sensitive to the concerns and genuine demands of the private sector and is ready to collaborate on reforms seen in the energy sector.

He informed that the ministry is preparing to introduce a new electricity policy and has requested suggestions from the private sector, including a clear action plan or “checklist.”

He also pointed out that for energy security, a participatory model with clearly defined roles between the government and private sector is necessary.

He stressed the need to correct weaknesses and malpractices seen in both public and private sectors.

During the discussion, the delegation of NICCI suggested that Nepal needs to shift its policy priorities to develop the hydropower sector, create an investment-friendly environment, and simplify approval processes.

NICCI President Sunil KC said that Indian investment over the past two decades has been lower than expected and it highlighted the need for reforms.

He also emphasised the need for a strategic shift from traditional models to prioritising transmission infrastructure and electricity trade.

The NICCI proposed organising a “Nepal-India Energy Forum” in New Delhi to expand energy cooperation, where both governments would facilitate and the private sector would invest.

During the meeting, the delegation also urged the government to move forward with long-pending electricity trade approvals.