The Association of Power Producers, Nepal (IPPAN) has demanded various relief packages for hydropower projects affected by floods.

At the meeting with the Minister of Energy, Water Resources and Irrigation, Kulman Ghising, on Wednesday, IPPAN representatives emphasized that the government should announce a relief package for the reconstruction of hydropower projects damaged by floods.

According to a press release issued by the ministry today, Minister Ghising stated that he would make efforts to provide maximum relief to the flood-affected projects. The minister also informed that he would present solutions to energy projects related to forests in the upcoming cabinet meeting.

IPPAN chair Ganesh Karki called for a relief package that considers all projects damaged by the floods occurred on June 15 and 16, 2023, the floods and landslides on different dates in June-August and on September 27-28 in 2024 and on different dates in June-August as well as on October 3-4, 2025, covering issues such as the date to start electricity production (RCOD), license duration, loan restructuring, long-term financing, and customs duty exemptions.

IPPAN's demands

IPPAN has demanded that necessary machinery and equipment for the reconstruction and maintenance of flood-affected projects should be allowed to be imported with a one percent customs duty.

IPPAN has also demanded that the RCOD period of under-construction projects damaged by floods be extended by three years and the validity of the permit by five years, and that arrangements should be made for the restructuring and refinancing of loans of flood-affected projects.

Similarly, IPPAN has called on the government to make provision for the rapid issuance of the halted IPO and rights shares of flood-affected projects, and to declare hydropower projects damaged by natural disasters as 'crisis-ridden' to take necessary policy decisions.

Among the seven demands of IPPAN, include the need to arrange long-term financing for flood-affected projects and to abolish the provision of the projects automatically converting to 'take and pay PPA' if they fail to generate electricity within the fiscal years 2025/26–2027/28.