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KATHMANDU, JUNE 24: The ruling coalition partners, the Nepali Congress (NC) and the CPN-UML, reached an agreement to remove both the 'take and pay' and 'take or pay' provisions from the Power Purchase Agreement (PPA). With this, the PPA will proceed based on electricity demand and consumption.
The government also stated that it will undertake further work to fully implement the Energy Development Roadmap (2081).
NEA signs PPA with Sangrila Hydropower Pvt Ltd for Jaldigad hyd...
Earlier, the government introduced the 'take and pay' provision through the budget, which faced backlash even from the ruling alliance. Sher Bahadur Deuba, the president of the main ruling party, the Nepali Congress (NC), also pressured the government to remove the newly introduced 'take and pay' provision.
Previously, Nepal used the 'take or pay' model for the PPA.
The House is scheduled to endorse the appropriation bill for the fiscal year 2025/2026, which was tabled on May 29, on Tuesday in the parliament.
The ruling CPN-UML has also issued a whip directing all its parliamentary members to be present and vote in favor of the Appropriation Bill for the Fiscal Year (FY) 2025/26.
