KATHMANDU, Jan 26: The Independent Power Producers Association Nepal (IPPAN) has said that about 20,000 megawatts of hydropower production will be shut down following the Supreme Court’s recent decision.
Addressing a press conference in Kathmandu on Sunday, IPPAN opposed the SC’s decision to dismiss the amendment to the National Parks and Wildlife Conservation Act, which had allowed development projects to be carried out in protected areas.
IPPAN and NIA reach agreement on hydropower insurance premiums
IPPAN claimed that the SC decision will result in the closure of about 20,000 megawatts of hydroelectric projects, including those under construction and already constructed. IPPAN said that the private sector energy producers were disappointed by the SC decision. A statement issued by IPPAN said they were confident that the private sector would prove to be a milestone in Nepal's economic development with the amendment to Some Nepal Acts related to investment facilitation, 2081 BS but the apex court has dashed their hopes.
Speaking at a press conference, IPPAN General Secretary Balaram Khatiwada said that the SC decision has created a situation where about 20,000 megawatts of hydropower generation will be shut down.
IPPAN claimed that the 267 hydropower projects, with a total capacity of 19,736 megawatts, which have already made huge investments after paying the required fees, royalties, and taxes according to the existing laws, and obtained permits for electricity generation and surveys, now have to face further complications. Khatiwada said that the latest SC order would result in an annual loss of more than Rs 400 billion to the state. He said that the order, which prohibits the construction of infrastructure projects in protected areas such as national parks, will result in the state losing Rs 420 billion annually in royalties and taxes.
The SC has issued an order stating that infrastructure development cannot be done in protected areas, including national parks. There is a possibility that the country will face load-shedding if the target of producing 28,500 MW of electricity within the next 10 years is not successfully implemented under the government’s ambitious Energy Development Roadmap, 2081 BS.
