Kathmandu — The government led by the Rastriya Swatantra Party (RSP) has introduced a new time-bound action plan to eliminate long-standing administrative delays in the energy and water resources sector.
Unveiling its “100 Governance Reform Agenda,” the government has set a clear target to complete key decisions related to hydropower projects within a maximum of six months.
Under the new provisions, major approvals for hydropower projects—including Power Purchase Agreements (PPA), Environmental Impact Assessment (EIA) approvals, and other necessary permits—must be finalized within 180 days from the date of application. Previously, such processes often remained stalled for years, but the shift to a time-bound system is expected to provide greater clarity and confidence to private sector investors.
To address structural challenges in project development, the government is also preparing to introduce an umbrella law within 60 days aimed at simplifying legal and procedural complexities. Additionally, it plans to enact legislation within 30 days that would allow projects with repeatedly failed bidding processes to be directly implemented through a government infrastructure development company.
The government also appears to be focusing on energy trade. A strategy has been set to increase electricity exports, particularly during evening peak hours when higher prices can be secured, which is expected to contribute to greater revenue generation.
To reform the structure of the Nepal Electricity Authority, a separate “roadmap” will be prepared and implemented. Additionally, the government has proposed developing a multi-dimensional financing model to ensure long-term investment in the energy sector, incorporating resources from the public sector, private sector, foreign investors, and Non-Resident Nepalese (NRNs/diaspora).
Urjasanchar
