Kathmandu — With the government’s recent policy decision, the processes of more than 200 hydropower projects that had long been stalled have now found a way to move forward. The Cabinet’s decision on Nov 24th has legally facilitated the progression of projects that had completed the required procedures for survey and environmental approval before July 8th, 2024.
According to the government’s decision, projects that have obtained survey licenses under the prevailing legal provisions, received approval for the Terms of Reference (ToR) for environmental studies, completed initial and detailed environmental assessments, and initiated the processes for forest area use permission and tree-cutting approval will now be able to expedite their remaining approvals through the Ministry of Forests and Environment.
The government has also introduced a clear policy to resolve disputes related to projects located within protected and buffer zones. Environmental studies and forest land–use processes for projects that had obtained survey licenses or had already signed Power Purchase Agreements (PPAs) before July 8th, 2024, will be carried forward in accordance with the prevailing laws.
In addition, arrangements have been made for the Ministry of Forests and Environment to handle the environmental approval processes required for essential public services and infrastructure within protected areas—such as petroleum pipelines, tourism infrastructure, drinking water, roads, bridges, irrigation, communications, public transport, electricity transmission lines, and health services.
According to energy-sector experts, this decision by the government has laid an important foundation for sustainable energy generation, investment promotion, and the reactivation of stalled projects.
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