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KATHMANDU, June 17: Finance Minister Bishnu Prasad Paudel has said the government will not revise the ‘take and pay’ provision included in the new budget despite widespread criticisms from various stakeholders.
Speaking at Monday’s House of Representatives meeting, Paudel clarified that the provision allows private sector participation in electricity trade. “A bill to open power generation and trade to the private sector is under parliamentary consideration. Once passed, the current monopoly of the Nepal Electricity Authority (NEA) on electricity sales will end, allowing broader participation,” he said.
NC-UML agree to exclude 'take and pay' and 'take or pay' in PPA
Under the provision, NEA will purchase electricity from the private sector as per demand and supply needs, while surplus energy can be sold independently. Paudel argued the policy aims to balance demand and ensure flexibility in power purchase agreements (PPAs).
This comes a day after Energy Minister Deepak Khadka told a press conference the ‘take and pay’ clause was mistakenly included in the budget and would be corrected.
