KATHMANDU, March 28: Indian business conglomerates have expressed their willingness to invest in Nepal’s energy sector, provided investment security and returns are ensured.
Speaking at the Nepal-India Energy Summit in New Delhi, organized by the Nepali Embassy in India and the Indian Green Energy Federation, along with institutional participation from the Independent Power Producers’ Association of Nepal (IPPAN), Indian investors emphasized the need for policy protection in Nepal. They urged the government to ensure a smooth repatriation of investments and address hydropower project-related challenges.
Similarly, Sushil Sharma, project director of Satluj Jal Vidyut Nigam (SJVN), which is developing the 900 MW Arun-3 Hydropower Project in Nepal, highlighted obstacles such as forest clearance, land acquisition, customs, and road infrastructure. However, he acknowledged government support in resolving these issues, noting that 84 percent of the Arun-3 project was already completed within just three years.
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SJVN is also constructing a 217-kilometer transmission line to facilitate electricity export, Sharma added. He asserted that Arun-3, with an investment of INR 340 billion, will significantly contribute to Nepal’s economy before being transferred to the government after 25 years.
Meanwhile, Adani Group's Vice President Jayaraman Punidhan stated that his company is exploring viable hydropower projects in Nepal. Adani Group has signed MoUs for 27,300 MW of power generation worldwide, prioritizing investments in neighboring countries and the regional energy market.
Similarly Akash Tripathi, Additional Secretary at India’s Ministry of Power, reassured that Nepal’s electricity export to India will face no obstacles, as infrastructure for 1,000 MW of power exchange is already in place, with four additional transmission lines under construction to support an 8,000 MW capacity.
Likewise, Naresh Goyal, Executive Director of North India Hydropower Company, emphasized that Indian investors are ready to invest if Nepal eliminates administrative hurdles and improves the investment climate.
Nepal’s Ambassador to India, Dr Shankar Sharma, said that the summit was organized to support Nepal’s ambitious goal of 28,500 MW power generation by 2035. He also highlighted that Indian investors could enter Nepal’s hydropower sector through joint ventures or project acquisitions.