IPPAN suggests law amendments to PM to attract large energy investment

The Independent Power Producers' Association, Nepal (IPPAN) has suggested that the government amend half a dozen laws to attract large-scale investment in the energy sector.

The proposal was submitted to Prime Minister Balendra Shah after the Office of the Prime Minister and Council of Ministers wrote to 21 private sector organizations on Asoj 2, seeking their opinions in a prescribed format.

IPPAN has demanded that the Electricity Act, 2049 be amended to allow the private sector to trade electricity both within and outside the country. IPPAN argues that such permission is necessary to secure investment already made by the private sector and to attract more than 4 trillion rupees in future investment.

It has also urged the government to immediately reopen power purchase agreements, halted since 2075 BS, and finalize agreements for projects totaling nearly 17,000 megawatts.

IPPAN has further demanded an end to the Nepal Electricity Authority's monopoly and open access to transmission lines for all. It has also suggested ending the tendency of files getting stuck in government offices.

The suggestions also cover removing hurdles related to forest area clearances for projects and the obstacle posed by land ceiling limits. IPPAN has submitted these suggestions to the government in a three-column format.