Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: A rift has emerged within the Nepali government over the controversial ‘Take and Pay’ policy, with Energy Minister Deepak Khadka pledging to amend it, while Finance Minister Bishnu Poudel defended its implementation during a parliamentary session on Monday.
Responding to lawmakers’ concerns, Finance Minister Poudel justified the policy, linking it to a pending Electricity Bill under consideration in Parliament. “Once the Electricity Bill is passed, the scope of power trading will expand significantly.
The current restriction of selling electricity only through the Nepal Electricity Authority (NEA) will end,” Poudel said. He emphasized that the policy aims to encourage private sector investment, stating, “This isn’t about discouraging private investment in power generation; we want to promote it. We aim to enhance the private sector’s role in production, transmission, and sales. I urge you not to view this as a concern.”
Poudel added that post-legislation, excess power production could be sold by the private sector, aligning with broader market liberalization. However, last week, Energy Minister Khadka had criticized the policy, arguing it contradicts the Energy Development Roadmap. Speaking in Parliament, Khadka assured that the ‘Take and Pay’ provision would be corrected, reflecting concerns over its impact on the roadmap’s target of consuming 28,500 megawatts by 2035.
The conflicting stances highlight internal government discord, with the outcome hinging on the Electricity Bill’s fate, raising questions about future energy sector reforms.
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