Kathmandu. Independent Power Producers’ Association of Nepal (IPPAN) Chairman Ganesh Karki has said that the private sector has already invested Rs 13.10 trillion in power generation.

At a programme organized by IPPAN to review the budget and the works carried out in the last three years, he said that the private sector has contributed 80 percent to the energy sector of Nepal. “Out of the total capacity of 4,200 MW produced in the country at present, 3,500 MW has been generated by the private sector,” he said.

Of the Rs 1310 billion investment made by the private sector so far, Rs 870 billion belongs to the banks and financial institutions and Rs 440 billion from the private sector, he shared. According to him, the hydropower sector provides employment to over 300,000 people and contributes over Rs 25 billion in revenue annually.

The government has set a target of producing 30,000 megawatts of electricity in 10 years, he said, adding that the investors were disappointed for lack of clarity in the budget regarding power purchase agreement (PPA) of big projects. The main demands put forth by IPPAN are 50 years of license period, participation of private sector in electricity trade and transmission line, end of forest and environmental hassles and implementation of one-door system.

“In the past three years, we had successful programs like Power Summit and Hydro Expo, but still a lot needs to be done at the policy level. Rapid development of energy sector is not possible until the compulsion to visit eight ministries and 23 departments is ended,” he said. The IPPAN has also urged the government to facilitate in providing relief to flood-affected projects, guarantee of security in hydropower projects and tax exemption.