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IPPAN is a partner agency, not a stakeholder: Energy Minister Shrestha

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Kathmandu. Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has said that IPPAN is willing to be promoted as a partner organization rather than a stakeholder body.

During a meeting with a delegation led by Independent Power Producers’ Association of Nepal (IPPAN) President Ganesh Karki at Singha Durbar on Wednesday, Minister Shrestha said that the private sector, which has contributed more to the energy sector of Nepal than that of the state, would be treated as a partner rather than a stakeholder agency.

He said that energy has been given a lot of importance in the priority of the newly formed government and the single leadership party of the government, and some good programmes would be implemented from the upcoming budget.

Minister Shrestha said that the government wants to carry out reforms in such a way that the system itself runs the person and the institution, not the individual.

Stating that statistics have proved how much electricity was generated when the government alone produced electricity in the past, he clarified that he was in favour of multiple buyers as it was not possible for a single buyer to work as per the wishes of the state and private sector.

He stressed the need for the government and private sector to jointly organize public awareness programmes as the locals have obstructed the construction of transmission line along with hydropower projects. Minister Shrestha said that if the energy infrastructure is not built on time, not only the industrialists but also our country will be affected.

IPPAN Chairman Ganesh Karki said that the government is expected to resolve all problems in energy sector by allocating works to be done within 1 month, three months, six months and a year as per the commitments and 100-point action plan of the Rastriya Swatantra Party (RSP).

Karki also said that results can be given in 3 months if policy problems are separated from procedural problems on one side. Objecting to the fact that the institutions established to facilitate the private sector have started enjoying the pain of the private sector, Chairman Karki said that the practice of dual regulation and double fine by the Nepal Electricity Authority, Department of Electricity Development, Electricity Regulatory Commission and other institutions should end immediately.

“There are so many headlines that the project did not pay dividend, but it is not reported that the company has not paid dividend because the government has not built the transmission line or bought electricity or it is deliberately hidden. Chairman Karki said, “If the contingency system is not removed, the company will not have the capacity to pay dividend and the entrepreneurs may end up on the road.” ‘

Referring to the fact that the EIA held in 2077 BS has not yet received permission to cut trees, but the Nepal Electricity Authority (NEA) has refused to extend the RCOD deadline, Karki asked Minister Shrestha, “Was it the fault of the promoter or the state? If it is delayed due to the state, why not add RCOD? The private sector is terrified and frustrated by the fact that fines are being imposed at every step. ‘

He also accused the NEA of bullying the NEA by not buying electricity when the lights of some projects were switched on. Likewise, Karki drew the attention of Minister Shrestha to the fact that the locals were harassing the Securities Board of Nepal (SEBON) for not giving permission to the locals even though the law stipulates that the shares should be given to the locals.

Likewise, the CDSC has not listed the promoter shares for the past 14 months, which has caused a lot of trouble to the investors of 22 companies.

Stating that the situation has surfaced that the construction of 20,000 megawatts projects has come up after the Supreme Court ordered not to operate in the national park area, he said that the government should work towards creating environment conducive for the construction of projects even if the area of the national park is reduced.

Deputy General Secretary of IPPAN Prakash Dulal said that the government does not need to wait for six months to expand the lease period to 50 years, to find market for the generated power, to extend the RCOD deadline, to sign PPA and to forward the files of 15 projects that have been stalled for lack of permission for cutting trees.

Dulla also said that the government should not wait for the deadline to renew the license of the industries operating hydropower projects, to create an environment for the issuance of IPO and to resolve the dispute of dual engine.

Former president of IPPAN, Shailendra Guragain, said that policy-level and procedural problems should be resolved. He said that the government could not construct more transmission lines as it did not have money and if the responsibility was handed over to the private sector, all the transmission lines could be completed in 3 years.

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