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The Ministry of Energy, Water Resources and Irrigation has reported satisfactory progress during the last fiscal year. Out of its total budget of NPR 84.33 billion for fiscal year 2082/83 (2025/26), the ministry spent NPR 52.28 billion. This represents a financial progress of around 62% and a physical progress of 71.35%.

At the annual progress review and the meeting of the Ministry-Level Development Problem Resolution Committee held on Friday, the ministry disclosed that the energy sector achieved 63.27% physical progress, while the water resources and irrigation sector recorded 79.27% physical progress.

The review meeting identified several key achievements of the ministry, including:

Approval of the investment modalities for the Budhi Gandaki Hydropower Project and the Upper Arun Hydropower Project.

Advancement of the transmission line construction process through tariff-based competitive bidding.

Successful completion of the 13th meeting of the Nepal–India Energy Secretary-Level Mechanism.

The ministry also highlighted the progress of new bills related to energy and water resources, as well as the approval for the Nepal Electricity Authority (NEA) to issue NPR 20 billion worth of energy bonds, as major accomplishments.

According to the review, the Alternative Energy Promotion Centre (AEPC), the Department of Water Resources and Irrigation, and the Nepal Electricity Authority achieved satisfactory performance. However, the Department of Electricity Development and the Water and Energy Commission Secretariat performed below expectations. Delays in obtaining source approval, local-level obstructions, shortages of skilled personnel, and delays in environmental clearances were identified as the main reasons for weaker progress.

Among the National Pride Projects, the Rani Jamara–Kulariya Irrigation Project, Babai Irrigation Project, and Sikta Irrigation Project recorded notable progress. However, challenges related to land acquisition, contract management, and resource mobilization continue to affect the Bheri–Babai Diversion Project, Sunkoshi–Marin Project, and Budhi Gandaki Hydropower Project. Although the financial modality for the Budhi Gandaki project has been approved, the current fiscal year's budget proposes changing the project development model to one led by the Nepal Electricity Authority.

The meeting concluded that greater effectiveness in land acquisition, forest and environmental approvals, resolving transmission line right-of-way issues, improving contractors' performance, ensuring resource availability, and strengthening inter-agency coordination will be essential for achieving better results in the coming fiscal year.

Addressing the meeting, Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha said that policy and procedural obstacles outside the actual construction process have become the biggest challenges. He emphasized that the expected level of development cannot be achieved without improvements in land acquisition, compensation management, resource assurance, inter-agency coordination, and contract management.

Despite these challenges, the minister said the ministry had achieved satisfactory physical progress. He described the current fiscal year 2083/84 (2026/27) as a "year of opportunity and results." He stressed that Nepal should pursue qualitative improvements by expanding electricity generation, transmission, distribution, and energy trade, while promoting green energy and encouraging greater participation from the private sector. He also stated that Nepal's role in the regional energy market, groundwater management, and the effective implementation of multipurpose projects would be further strengthened in the coming years.