Indian investors urged to invest in Nepal’s hydropower sector

By A Staff Reporter,Kathmandu, Mar. 27: President of the Independent Power Producers' Association Nepal (IPPAN) Ganesh Karki has urged the Indian investors to invest in Nepal.

Addressing the India-Nepal Energy Summit in New Delhi, India, on Wednesday, Karki said that there is a golden opportunity for investment in Nepal as the government of Nepal has recently set an ambitious target of generating 28,500 megawatts of electricity by 2035, and this requires an investment of USD 46.5 billion.

According to a press statement issued by the IPPAN, on the occasion, President Karki said that Nepali private sector, which started electricity production since 2000, now accounts for 80 per cent (about 2,800 MW) of the total installed capacity of 3,500 MW.

Nepal and India are currently exchanging 1,000 megawatts of electricity, and a long-term power trade agreement has been reached to increase it to 10,000 megawatts in the next 10 years. 

Karki said that projects with the capacity of generating 5,000 megawatts are underway in Nepal with the investment of various Indian companies and additional projects with thousands of megawatts of electricity are awaiting Indian investment.

He said that as per a preliminary study conducted by the Investment Board Nepal, Nepal has a solar power generation capacity of more than 4.32 gigawatts, making Nepal an attractive destination for the Indian investors in solar energy as well.

He informed that Nepal is interested in partnering with major Indian business houses like Adani Group, Tata Power, Jindal Power, GMR Group, SJVN Limited and NHPC.

Karki said that Nepal can be developed as a country that meets the increasing energy demand in the regional market by transforming Nepal's abundant hydropower generation potential into a reality.

Chiranjivi Chataut, Joint Secretary at the Ministry of Energy, Water Resources and Irrigation, urged the Indian investors to invest in Nepal with confidence. He assured that the ministry will facilitate many things to achieve the government's target of generating 28,500 MW of electricity.

He said that currently there is a suitable policy for electricity generation, a 400 kV transmission line between Nepal and India is in operation and two more lines are under construction, so adequate infrastructure is ready for electricity generation and trade between the two neighboring countries.

Chataut urged all large Indian investors to invest in Nepal as Nepal's hydropower policy is suitable and good for protecting investors.

Presenting a paper on Nepal's hydropower potential and projects, IPPAN Vice President Ananda Chaudhary said that the installed capacity of hydropower projects in Nepal has reached 3,500 MW at present and many projects are in various stages of construction.

Similarly, hydropower projects with 4,000 MW capacity are under construction, 4,100 MW of projects are awaiting financial management by completing Power Purchase Agreements (PPAs), and about 20,000 MW of projects are in various stages of study, so there is an opportunity for the Indian investors to select attractive projects and invest, he said

He briefed the Indian investors about three dozen large and attractive hydropower projects in Nepal, both private and government-owned.

The Summit was organised by the Nepali Embassy in India and Indian Federation of Green Energy (IFGE) with the institutional participation of IPPAN with the slogan of "Exploring Investment Opportunities in Hydropower and Renewable Energy Sector".