Kathmandu, June 12: Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha has said the government stands at the threshold of a major transformation in Nepal’s energy sector, with the private sector set to play a central role in driving it forward.
Speaking at the opening ceremony of the 24th Annual General Meeting and 8th Convention of the Independent Power Producers’ Association, Nepal (IPPAN) held here on Friday, Minister Shrestha said the government has opened pathways for private sector participation in electricity production, trade, and transmission, and is eager to partner with it for broader energy sector development.
He noted that impractical and investment-discouraging laws are being amended, and that the ministry is preparing to table the Water Resources Bill and the Renewable Energy and Energy Efficiency Bill in the current parliamentary session. The Electricity Bill and the Irrigation Development and Management Bill are also being readied for the upcoming session, with the minister expressing confidence that the new legislative framework will have a positive impact in the days ahead.
“We are aware that stakeholders should be involved in law-making. We also expect their constructive participation in this,” he said.
Minister Shrestha acknowledged the challenge of balancing public expectations, limited resources, and past obligations, saying no single budget could meet all demands. However, he said that efforts to foster entrepreneurship, employment, and an investment-friendly environment had already begun. He added that the current budget places the energy sector at the centre of economic transformation, with adequate allocations to advance electricity production, trade, infrastructure, and industrialisation in an integrated manner.
He reaffirmed the government’s commitment to providing opportunities to genuine investors while stressing the need for stricter enforcement of good governance in the energy sector.
Chairperson of the House of Representatives Infrastructure Committee, Ashish Gajurel, said the committee is actively focused on the energy sector and called for policy improvement suggestions from stakeholders. He added that the committee is coordinating with relevant ministries and agencies to put in place investment-friendly policy arrangements.
IPPAN President Ganesh Karki highlighted that the private sector contributes 80 percent of Nepal’s energy production and has played the biggest role in ending the era of up to 16 hours of daily load shedding. He noted that while Nepal was importing electricity from India a decade ago, the country now exports over two billion units annually. He added that the private sector has so far invested Rs 1,350 billion in the energy sector, which he described as the main foundation for Nepal’s economic prosperity given its vast natural resources.
The event was also addressed by Member of Parliament Bharat Parajuli, FNCCI Vice President Dil Sunder Shrestha, Nepal Electricity Authority Acting Managing Director Dirghayu Kumar Shrestha, Nepal Chamber of Commerce President Kamlesh Agrawal, Confederation of Nepalese Industries President Birendra Raj Pandey, outgoing IPPAN President Krishna Prasad Acharya, and IPPAN Senior Vice President Mohan Kumar Dangi, all of whom praised the private sector’s contribution to energy development and called for stronger government coordination to address prevailing challenges. #nepal
