Energy sector will give special importance to ‘departure’, energy and physical infrastructures in the upcoming budget: Minister Wagle

लगानी न्यूज

६ जेष्ठ २०८३, बुधबार १०:५४May 20, 2026

Kathmandu. The government has prioritized the development and expansion of energy sector, which is seen as the major pillar of the country’s economic prosperity, in its policies and programmes and budget.

It is believed that it will get more important place in the budget of the coming fiscal year after getting priority in the policy and program. Stakeholders have said that there will be a new ‘departure’ in the budget considering the progress of this sector with the cooperation of the government and the private sector.

The Independent Power Producers’ Association of Nepal (IPPAN) is also expecting the upcoming budget to address the guidelines it is seeking this time.TAG_OPEN_div_84

Finance Minister Dr Swarnim Wagle, while responding to the queries raised during the discussion on the priorities and principles of the Appropriation Bill on Tuesday, has indicated that the energy and physical infrastructure sectors will get special importance in the upcoming budget.TAG_OPEN_div_82

The government’s policy and programmes for the fiscal year 2083/84 BS has decided to promote energy, water resources and irrigation sectors as strategic sectors directly linked to civilization, culture, biodiversity and human existence.TAG_OPEN_div_80

The government’s policy and programmes have presented a vision to conserve rivers not only as a means of water resources but also as the basis for human civilization, religious faith, cultural continuity and ecological balance.TAG_OPEN_div_78 It seems to have tried to connect the river system to the overall life system, expanding the development concept that was focused on hydropower generation and infrastructure construction in the past.

According to the policy, there will be a scientific study of the rivers of religious, cultural, ecological and social point of view.TAG_OPEN_div_76 The policy states that the government’s commitment to protect the traditional knowledge, lifestyle and spiritual relations of the indigenous and local communities living along the river as national heritage indicates that the balance between development and identity will be maintained.

The government’s announcement to ensure a ‘clean and sustainable river system’ is meaningful, especially in recent years when the natural flow, biodiversity and coastal lifestyle of rivers have been affected due to rapid hydropower construction, river exploitation, extraction and climate change.TAG_OPEN_div_74 According to experts, this concept has accepted the river as a living ecosystem, not just a means of energy production. The private sector is also expected to get positive results as the budget for the coming fiscal year will also be determined on the basis of the policy. IPPAN President Ganesh Karki said that they were waiting for the Sunset Law for the development of energy sector.

According to Karki, the problem would be resolved and the budget for the coming fiscal year would address this issue in the context of more than TAG_OPEN_div_72 40 files being held up at the Forest Ministry itself.

Similarly, the government has also put forward a policy to implement an integrated water resources management system based on the river basin.TAG_OPEN_div_70 Under this, a multipurpose project would be developed linking hydropower, irrigation, drinking water, tourism and downstream benefits in an integrated manner. It is seen as a long-term and integrated model of water resource utilization.

In the energy sector, the government has reiterated its ambitious target of producing 30,TAG_OPEN_div_68 000 MW of electricity within the next decade. In order to achieve the goal, a policy has been adopted to implement a one-door system by amending the laws related to energy, forest, land and environment. It is aimed at making the project approval process quick and investment-friendly.

The government has also introduced a policy to provide share investment opportunity to the project-affected locals as an alternative to cash compensation.TAG_OPEN_div_66 This is seen as an effort to make local communities direct financial partners of the project.

While the government has the policy of expanding the participation of private sector in power generation, transmission, distribution and power trade, it has also set a target to increase the domestic electricity consumption through the promotion of energy-based industries.TAG_OPEN_div_64 At the same time, the inter-country power trade agreements will be used as a basis to attract long-term investment.

Also speaking on the occasion, Minister TAG_OPEN_div_62 for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha said the government was focusing its activities in such a way that the energy and water resources sector could experience the energy and water resources as the major pillars of prosperity and the upcoming budget would become a new pillar for the same. He directed the Ministry and its subordinate bodies to make preparations accordingly.

The government has also forwarded a plan to expand off-grid solar, wind and micro hydropower systems in rural and remote areas where the national transmission line has not reached.TAG_OPEN_div_60 It has put forward a program to reduce regional inequality along with energy access.

The government has given strategic priority to the green hydrogen and chemical fertilizer industries. Such industries will be provided with tax and customs exemption, concessional electricity rate, capital incentive and investment-friendly policies. It has also been announced to start developing necessary infrastructure to expand the commercial use of green hydrogen in the transport sector.

Towards the irrigation sector, the government has adopted a policy to use underground water resources in the areas lacking irrigation facilities in the Tarai-Madhes and to extend irrigation through lift technology in the hilly and mountainous areas.TAG_OPEN_div_56

Priority will be given to consumer participation in the modernization, repair and rehabilitation of big irrigation projects.TAG_OPEN_div_54 The government has also given priority to the management of risks arising out of climate change.

The policy has been adopted to strengthen the forecasting system by expanding the automatic water and weather station and to make the multi-disaster early warning system more reliable. This time, the government seems to be trying to link the energy and water resources policy with environmental sustainability, cultural preservation, biodiversity and the survival of the community, not just on the basis of economic growth.

Participating in the discussion on the principles and priorities of the Appropriation Bill for the upcoming fiscal year, lawmaker Shreeram Neupane said that we should recognize and use the abundant water resources we have if we really want to make Nepal prosperous.TAG_OPEN_div_50

He stressed the need of immediate implementation of the ‘TAG_OPEN_div_48 Sunset Act’, he said, adding that it was necessary to implement the ‘Sunset Act’ for rapid investment, quick decision and long-term vision in this sector. “The first priority along with good governance is and should be balanced production and consumption of energy. To make the country rich, it is necessary to increase exports. Imports must be reduced. Today, we are consuming more than we produce. It has increased trade deficit and has suppressed the economy,” he said.

} The demand to end the situation of those trying to invest in the energy sector to visit seven ministries and 21 departments has not been addressed for a long time. The government’s policy and programme has already given guidance to address this issue. Many believe that this sector will make a qualitative leap if the budget for the next fiscal year makes more concrete provisions in this regard.

The private sector is of the opinion that the government has delayed removing practical, policy and technical difficulties in the context of the current total installed capacity of four thousand three hundred megawatts, the export of electricity has started to India and Bangladesh, and the construction of large capacity transmission lines.TAG_OPEN_div_44 The stakeholders have stressed on the need to make the government’s commitment to move ahead by taking into confidence the private sector, which contributes 80 per cent to the country’s system.