KATHMANDU, Jan 18: Deputy Prime Minister (DPM) and Home Minister Narayan Kaji Shrestha has emphasized that hydroelectricity is the major means for reducing trade deficit and taking the country ahead towards prosperity, and the government has kept it in main priority.

Addressing a program organized on the occasion of the 24th anniversary of the Independent Power Producers' Association, Nepal (IPPAN) on Thursday, DPM Shrestha said the country's energy sector can take a leap only through a meaningful initiative of the government and the private sector.

DPM Shrestha stressed the need for increasing the consumption of energy within the country, stating that the government is effortful at reducing the trade deficit by selling the surplus power. Reiterating that the government is committed to creating an environment conducive for investment in the energy sector, he said the present government is active in realizing the desire of the Nepali people for economic prosperity.

"Economic prosperity, social justice and good governance are the main priorities of the government," he said. Stating that an Investment Summit is being held in coming April, DPM Shrestha maintained the bodies concerned would be consulted for legal and structural improvements for bringing foreign investment in the energy sector. 

According to him, although an agreement has been made to export 10,000 megawatts of electricity to India in 10 years, increasing domestic consumption of power is the major priority for the government.

Minister for Energy, Water Resources and Irrigation, Shakti Bahadur Basnet, said the private sector has a contribution of 60 percent to the energy sector of the country and the national motto of building a prosperous Nepal would be fulfilled only through a partnership between the government and the private sector. 

He reiterated that the government is committed to addressing the demands put forth by the private sector and it has moved ahead respecting the appropriate ones. The Energy Minister presented the data that show energy production has increased from 800 megawatts to 3,000 megawatts over the last decade and electricity has reached 98 percent of households of the country. 

He called for thinking in a new way from today for bridging the gap in energy production during the monsoon and the dry season, stressing the creation of an environment for speeding up the under-construction projects, prioritizing reservoir-based projects and moving ahead with the concept of energy mix. 

Minister Basnet maintained that the government has not seen the energy sector only as infrastructure, but also accepted it as the main basis for economic prosperity, urging the private sector to put in investment without any qualms.

"I draw your attention, why could not the works be carried out in a notable way even for more than 10 years after taking the production license? I call upon IPPAN for taking up responsible initiatives on this," he said, urging the private sector to fulfill its responsibility. The energy minister assured the private sector not to worry much about the power purchase agreement issue, saying, "You come forward with a certain amount of work. Come forward completing the works that need to be done from your side. The Ministry shall facilitate in creating a conducive environment for that. The government is ready to address the demands of the private sector."

IPPAN President Ganesh Karki said the country's energy sector is moving forward on a progress trajectory and urged the government to address the demands related to power purchase agreement and the like. He also drew the government’s attention to the security challenges in the energy sector.

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