Kathmandu: Minister for Energy, Water Resources and Irrigation Deepak Khadka has stated that there should be no hesitation from banks and financial institutions in investing in the hydropower sector due to the ‘take and pay’ scheme issue. This statement was made during the financial management ceremony of the Mid-Chameliya (28.3 MW) Hydropower Project, which is set to be constructed in Darchula by Darchula Power Company, a subsidiary of Api Power Limited.
According to National News Agency Nepal, concerns have arisen regarding the financial management structure following the introduction of the ‘take and pay’ term in the new fiscal year budget. Minister Khadka clarified that the proposal did not originate from the Ministry of Energy, and discussions with the Ministry of Finance are ongoing to amend it. He emphasized the significant role of the private sector in achieving the government’s goal of generating 28,500 MW of electricity within the next decade. The minister highlighted the availability of resources and market demand, encouraging investments in the sector.
Furthermore, Energy Minister Khadka called for the timely completion of the Chameliya Hydropower Project. In support of the project, Nabil Bank has pledged investment, joining efforts led by Nepal Bank Limited. The project, which requires an investment of Rs 5.66 billion, is expected to be completed within the next 18 months, as stated by the company’s chair, Sanjeev Neupane.