Decision to remove VAT on electricity to come from upcoming cabinet meeting: energy minister

Energy, Water Resources and Irrigation Minister Birajbhakta Shrestha has released a report on the ministry's work over the six months since the government was formed.

At a press conference at the ministry on Wednesday, he said the decision to remove the VAT currently levied on electricity would be made by the next cabinet meeting. About three weeks ago, the energy minister's secretariat had said an agreement on this had been reached with Finance Minister Dr Swarnim Wagle, which the finance minister's secretariat later denied. An agreement to remove the VAT had also reportedly been reached in talks between Prime Minister Balen Shah and Rastriya Swatantra Party chair Rabi Lamichhane.

According to the ministry, five irrigation projects have brought irrigation facilities to about 3,800 hectares of land during this period. The Babai and Bheri-Babai projects are targeted for completion within two fiscal years.

Nepal and India have agreed to increase electricity import-export capacity through the Dhalkebar-Muzaffarpur and Dhalkebar-Sitamarhi transmission lines. The ministry has also forwarded the Renewable Energy and Energy Efficiency Bill to parliament.

The ministry claims it has also moved ahead with restructuring the Nepal Electricity Authority by splitting it into three separate companies for generation, transmission, and distribution and trading. It said about 2.4 million mobile messages were sent out regarding flood and landslide risks.