NCC submits 13-point suggestion to Minsiter Lingden; urges to revise PPA

KATHMANDU: A delegation of Nepal Chamber of Commerce (NCC) met with Deputy Prime Minister and Minister for Energy, Water Resources and Irrigation Rajendra Prasad Lingden on Tuesday. During the meeting held with Minister Lingden at the ministry in Singha Durbar, Kathmandu, the NCC delegation led NCC President Rajendra Malla emphasized the need to create an environment for the consumption and export of energy by promoting investment under the Public Private Partnership (PPP) concept in the hydropower sector. Malla said, 'Export of electric power is the only option to stop extreme trade deficit. Nepal exports power worth around Rs 10.5 billion during peak season. There should be no delay in exporting power by promoting domestic investment in hydropower. He emphasized the need to end the policy problems in the construction of hydropower projects and expedite the construction of transmission lines. The NCC President urged the Energy Minister to formulate a policy to encourage the investment of remittance money in hydropower projects. The NCC officials also handed over 13-point suggestions to Energy Minister Lingden. The suggestions included easing rates in power purchase agreements ( PPAs), ending hassles in land acquisition and extending the licence period among others. NCC President Malla opined that the period of 35 years in the PPA should be extended to 50 years citing that the cost of construction of hydropower projects has been increasing day by day along with the cost of production per megawatt. The NCC President further mentioned that the PPA rate of the completed projects fixed from Rs 2.92 to Rs 3.92 is very low and urged to adjust the new rate. The NCC also demanded to allow the private sector in the electrical power business. Minister Lingden said he was trying to increase public investment in hydropower development and added the government has planned to build projects like Dudh Koshi, Upper Arun, Budhi Gandaki through domestic investment. He informed that a tripartite agreement has been reached among Nepal, India and Bangladesh regarding the export of power from Nepal. He said the government has also authorized a policy to increase electricity consumption within the country. READ ALSO:

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