Deputy PM: Boosting Energy Production Key to Shrinking Trade Deficit

Deputy Prime Minister and Home Affairs Minister Narayan Kaji Shrestha highlighted the significance of hydroelectricity in reducing the trade deficit and promoting national prosperity. He emphasized the collaborative efforts of the government and the private sector in advancing the energy sector during an event commemorating the 24th anniversary of the Independent Power Producers' Association, Nepal (IPPAN).

DPM Shrestha stressed the need to boost energy consumption domestically and underlined the government's commitment to creating an investment-friendly environment in the energy sector. He reiterated the government's focus on economic prosperity, social justice, and good governance.

DPM Shrestha mentioned the upcoming Investment Summit in April and expressed the government's dedication to consult relevant bodies for legal and structural enhancements to attract foreign investment in the energy sector. Despite an agreement to export 10,000 megawatts of electricity to India in the next decade, he emphasized prioritizing increased domestic power consumption.

Minister for Energy, Water Resources, and Irrigation, Shakti Bahadur Basnet, acknowledged the private sector's 60 percent contribution to the country's energy sector. He emphasized that achieving a prosperous Nepal requires a partnership between the government and the private sector. Minister Basnet provided data indicating a significant increase in energy production over the past decade, reaching 3,000 megawatts with 98 percent household electrification. He called for innovative solutions to bridge the energy production gap between monsoon and dry seasons, emphasizing the importance of completing under-construction projects, especially reservoir-based ones.

Minister Basnet viewed the energy sector not just as infrastructure but as a fundamental driver of economic prosperity. He urged the private sector to invest confidently and called on IPPAN to take responsible initiatives. The minister assured the private sector that the government is ready to address their demands and encouraged them to focus on completing their responsibilities.

IPPAN president Ganesh Karki commended the progress of the country's energy sector and urged the government to address concerns related to power purchase agreements. He also drew attention to security challenges in the energy sector, emphasizing the need for government intervention.