Discussions underway to address ‘take and pay’ in energy sector

Kathmandu: Minister for Energy, Water Resources and Irrigation Deepak Khadka has said that there is no reason for banks and financial institutions not to invest in the hydropower sector over the issue of the ‘take and pay’ scheme.

Speaking at the financial management ceremony of the Mid-Chameliya (28.3 MW) Hydropower Project to be constructed in Darchula by Darchula Power Company, a subsidiary of Api Power Limited, he said there may be concerns over how the financial management will constitute after the term ‘take and pay’ was introduced in the new FY budget.

“The proposal is not from the Ministry of Energy and hence discussions are underway with the Ministry of Finance to amend it,” he said.

Energy Minister Khadka said that the private sector has an important role to play in achieving the government’s target of generating 28,500 MW of electricity in the next 10 years. “We have the resources to produce, we have the market, so why not invest?” he said.

He also urged for the timely completion of the Chameliya Hydropower Project.

Nabil Bank has also committed to investing in the project, which is being built under the leadership of Nepal Bank Limited.

The project, which is being constructed at an investment of Rs 5.66 billion, will be completed within the next 18 months, said the company’s chair, Sanjeev Neupane.