Nepal declares energy emergency to tackle power crisis

Addressing the Parliament, Deputy Prime Minister and Finance Minister Bharat Mohan Adhikary declared the next four and a half years as a period of energy crisis.
Adhikary also unveiled the government's programme to address the power crisis that includes generating 2,500 MW of hydroelectricity, formation of a powerful three-member Energy Crisis Control Committee, setting up of thermal plants and reducing power leakages by 20 per cent in the next six months.

He said that the government would provide licenses directly through the cabinet decision to renowned foreign companies to generate power from various hydropower projects including West Seti, Upper Seti, Budhi Gandaki, Trisuli, Dudkoshi, Modi-1 and Arughat.

He said that the government would call proposals from the private sector to generate power through diesel thermal plant and coal mines. Nepal is currently suffering from up to 14 hours power cuts daily due to the low level of water in the reservoirs of major power plants.

The minister also announced the government's plan to generate solar power for use in offices like the government secretariat, the ministerial quarters, Bir Hospital, Tribhuvan University and other public places in nine months.

As part of the emergency planning, the government would also exempt equipment related to solar power like solar panel and batteries from import tax. He also revealed that the government had a plan to purchase more electricity from India and works would be expedited in this direction.

The DPM said that the government would allocate Rs five billion additional fund for hydropower project for the current fiscal year to address the power crisis.