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IPPAN Demands Policy Clarity as Supreme Court Halts Hydropower Projects
Kathmandu: The Independent Power Producers’ Association Nepal (IPPAN) has urged the government to provide clarity on energy policies after the Supreme Court's recent verdict halted several hydropower projects across the country. The association raised concerns during a special discussion with the Economic Media Association Nepal (EMAN), stressing the need for alignment between the government's goals and the actions of its agencies.
Stalled Hydropower IPOs Affecting the Sector
Ganesh Karki, President of IPPAN, pointed out that IPOs worth Rs. 23 billion from hydropower companies are currently blocked at the Securities Board of Nepal (SEBON), adding to the growing frustration in the sector. Karki emphasized that despite the government's ambitious energy roadmap, the lack of policy implementation was hampering progress.
Supreme Court Ruling Threatens Over 250 Projects
A major concern highlighted by IPPAN is the Supreme Court's decision to halt infrastructure development in national parks and protected areas, a ruling that is set to affect more than 250 hydropower projects, with a total capacity of 19,000 MW. This legal setback has raised alarm among energy entrepreneurs who now fear significant delays in power generation.
Energy Sector Needs Immediate Action
IPPAN Senior Vice President, Mohan Dangi, stated that energy has now become Nepal’s most crucial sector for development, surpassing agriculture and tourism. However, Dangi expressed disappointment with the lack of progress in implementing the government’s energy roadmap, which has so far addressed 75% of private sector demands but failed to move forward effectively.
Bureaucratic Delays and Middlemen Affecting Progress
IPPAN Vice President, Uttam Bhloan Lama, criticized the role of middlemen and bureaucratic inefficiencies that are further delaying energy investments. Lama revealed that energy entrepreneurs have been forced to pay more than Rs. 3 billion in interest on equity financing due to the prolonged delays. He warned that IPPAN would resort to street protests if the government fails to resolve these issues.
EMAN Shows Support for IPPAN’s Demands
EMAN President Royal Acharya expressed the association's full support for IPPAN’s calls for policy clarity. Acharya reaffirmed that the media association would continue to advocate for the energy sector's legitimate demands, and both organizations agreed to strengthen their collaboration to push for more consistent and transparent energy policies.
As the situation continues to evolve, IPPAN remains hopeful that the government will take swift action to resolve the ongoing issues and prevent further disruption to Nepal's energy development.
