- Friday, 12 June 2026
Kathmandu, June 12: Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha has said that the government is at the starting point of transforming the energy sector.
At the opening ceremony of the 24th annual general meeting and 8th convention of the Independent Power Producers’ Association, Nepal (IPPAN) held here today, he said that the government has paved the way for the private sector to participate in electricity production, trade, and transmission lines.
He said that the government is waiting to partner with the private sector for the larger development of the energy sector.
Minister Shrestha stated that some impractical and investment-discouraging laws are being amended. He added that the ministry is preparing to present the Water Resources Bill and the Renewable Energy and Energy Efficiency Bill in the current parliamentary session.
According to him, preparations are underway to present the Electricity Bill and the Irrigation Development and Management Bill in the upcoming parliamentary session and he expressed confidence that these laws will play a positive role in the days to come.
“We are aware that stakeholders should be involved in law-making. We also expect their constructive participation in this,” he said.
He stated that it is challenging to balance public expectations, limited resources, and past obligations, and that it is not possible to meet all expectations through a single budget. However, he said that entrepreneurship, employment, investment-friendly environment creation, and the beginning of economic transformation have started.
The Energy Minister mentioned that through the budget, the energy sector has been established as the main basis for economic transformation and that this time there is enough budget allocation to move electricity production, trade, infrastructure, and industrialisation forward in an integrated way.
He said the government is always committed to providing opportunities to genuine investors and, while being private sector-friendly, there has been a need to be a bit strict regarding enforcing good governance in the energy sector.
Chairperson of the House of Representatives, Infrastructure Committee, Ashish Gajurel, said that the committee is working with a focus on the energy sector and urged for suggestions for further policy improvements. He also mentioned that the committee is coordinating with the relevant government ministries and agencies to take necessary steps for investment-friendly policy arrangements.
On the occasion, IPPAN President Ganesh Karki said that the private sector contributes 80 percent to energy production and highlighted that it has made the biggest contribution in bringing light to people’s homes who suffered up to 16 hours of load shedding daily.
He said that while ten years ago Nepal had to import electricity from neighbouring country India, now over 2 billion units of electricity are being exported annually.
The IPPAN President mentioned that energy development is considered the main foundation for Nepal’s economic prosperity due to its natural resources, adding that the government is also focusing on energy production through the private sector and has so far invested 1350 billion rupees in the energy sector under private sector leadership.
MP Bharat Parajuli, Vice President of the Federation of Nepalese Chambers of Commerce and Industry Dil Sunder Shrestha, Acting Managing Director of Nepal Electricity Authority Dirghayu Kumar Shrestha, President of Nepal Chamber of Commerce Kamlesh Agrawal, President of the Confederation of Nepalese Industries Birendra Raj Pandey, outgoing President of IPPAN Krishna Prasad Acharya, and Senior Vice President of IPPAN Mohan Kumar Dangi praised the role of the private sector in energy production and highlighted the need for greater government coordination to address the challenges observed.
