Energy Ministry begins budget execution roadmap, Pushes NEA for immediate action

KATHMANDU: Nepal’s Ministry of Energy, Water Resources and Irrigation has begun preparations for the implementation of the upcoming fiscal year’s budget, directing the Nepal Electricity Authority (NEA) to develop clear action plans and accelerate project execution to ensure timely delivery of key energy infrastructure projects.

During a high-level discussion with the NEA’s acting executive director and deputy executive directors, Energy Minister Biraj Bhakta Shrestha stressed the need for effective budget implementation and urged the utility to immediately mobilize its resources based on a detailed implementation roadmap.

The meeting comes shortly after the government unveiled its budget for the upcoming fiscal year, which places significant emphasis on expanding Nepal’s electricity transmission network, substations, and other critical energy infrastructure aimed at strengthening the country’s power system and supporting rising electricity demand.

Focus on Timely Completion of Energy Projects

Minister Shrestha said projects and programs included in the national budget must be completed within their designated timelines, emphasizing that delays have historically undermined infrastructure delivery and investment efficiency in the energy sector.

He assured NEA officials that the ministry would take necessary initiatives to address policy-level and administrative obstacles that may emerge during project execution. However, he underscored that the responsibility for implementation and delivery rests primarily with the utility’s management.

“The government has allocated sufficient resources for transmission lines, substations, and other priority infrastructure projects. The concerned agencies should now move forward with clear implementation schedules and ensure timely completion,” Shrestha said.

Nepal has been investing heavily in transmission infrastructure in recent years to evacuate growing hydropower generation, reduce system bottlenecks, and facilitate electricity exports to regional markets, particularly India.

NEA Asked to Deliver Results After Receiving Requested Budget

The minister noted that the authority has secured the level of budget it had requested for the upcoming fiscal year and therefore must demonstrate tangible improvements in project implementation, service delivery, and power supply reliability.

“This time the authority has received the budget it sought. The responsibility now lies with the NEA to ensure effective utilization of those resources, improve service delivery, and guarantee quality and sustainable electricity supply,” Shrestha said.

He also called on NEA officials to make full use of their technical expertise and institutional experience, urging management teams not only to identify problems but also to present concrete solutions to address them.

According to ministry officials, the government expects faster execution of transmission and distribution projects as Nepal’s installed electricity generation capacity continues to expand rapidly, creating pressure to strengthen grid infrastructure.

Governance and Accountability Prioritized

Beyond physical infrastructure development, the minister emphasized the need to strengthen institutional governance and make project implementation more results-oriented.

He encouraged deputy executive directors and senior officials to provide candid recommendations on project prioritization, organizational reform, and operational improvements.

“Rather than debating what happened in the past or why things did not move forward, my focus is on how we proceed from here,” Shrestha told officials.

The minister’s remarks signal the government’s intention to place greater emphasis on accountability and performance-based management within the energy sector, which remains central to Nepal’s economic growth ambitions.

Outstanding Electricity Dues Collection Also Discussed

During the discussion, Shrestha also instructed the authority to continue pursuing the collection of outstanding electricity tariff dues as a regular institutional priority.

He said issues raised by the authority should be accompanied by continuous monitoring and follow-up mechanisms to ensure that they reach a logical conclusion.

The collection of outstanding electricity dues has remained a sensitive issue in Nepal’s power sector, particularly involving industrial consumers and disputed billing cases that have drawn political and legal attention in recent years.

Detailed Action Plan Expected by Mid-June

During the meeting, deputy executive directors presented progress reports on projects and programs under their respective areas of responsibility and outlined preliminary plans for the coming fiscal year.

Officials informed the minister that the authority is preparing a comprehensive implementation roadmap and intends to submit a detailed action plan to the NEA Board of Directors by mid-June (around Asar 15).

The roadmap is expected to include project-wise milestones, implementation schedules, budget utilization plans, and performance indicators designed to improve execution efficiency.

Budget Execution Seen as Key Test for Energy Sector

The ministry’s move to begin implementation planning immediately after the budget announcement reflects growing concern within the government over persistent delays in public infrastructure spending.

Energy experts have long argued that Nepal’s challenge is no longer limited to budget allocation but rather the effective execution of projects within approved timelines.

With substantial investments planned for transmission lines, substations, hydropower integration, and grid modernization, the coming fiscal year is expected to be a critical test of whether Nepal’s energy institutions can translate budget commitments into tangible infrastructure and improved electricity services.