Kathmandu: Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has stated that policy reforms will be given top priority to improve the energy sector. During discussions with officials of the Nepal–India Chamber of Commerce and Industry, he acknowledged that while the energy sector holds immense potential, it also faces significant challenges, and clarified that the government is moving forward with policy-level reforms.
Minister Shrestha emphasized that, along with energy production, equal focus must be placed on consumption strategies. He stressed the need for realistic assessment of domestic and industrial demand and highlighted that the energy sector should be linked with production to serve as a foundation for economic growth. “Energy is a raw material; it must be connected to products,” he said.
Highlighting the government’s role as a facilitator, he stated that policies will be designed to encourage private sector leadership in development. According to him, the energy sector will be advanced through a multidimensional approach with increased private sector participation. He also urged entrepreneurs and business leaders to come forward not only with problems but also with solutions, emphasizing the importance of “economic diplomacy” as a key tool for energy development.
Minister Shrestha noted that the government is sensitive to private sector concerns and ready to collaborate for reforms. He also informed that the ministry is preparing to introduce a new electricity policy and has requested suggestions from the private sector along with a clear action plan (checklist).
He further stated that a participatory model with clearly defined roles between the government and private sector is essential for energy security, and emphasized the need to correct weaknesses and bad practices seen in both public and private sectors.
During the discussion, the Nepal–India Chamber of Commerce and Industry suggested revising policy priorities, creating an investment-friendly environment, and simplifying approval processes to improve Nepal’s hydropower sector. NICCI President Sunil KC pointed out that expected Indian investment has not materialized over the past two decades, highlighting the need for reforms.
NICCI also stressed the need for a strategic shift from traditional models toward prioritizing transmission infrastructure and electricity trade. It proposed organizing a “Nepal–India Energy Forum” in New Delhi to expand energy cooperation, with facilitation from both governments and investment from the private sector. Additionally, the chamber called for expediting the long-stalled electricity trade approval process.
Urjasanchar