This moratorium will continue till the country builds the capacity to generate 2,500 MW of electricity round the year. The government will also offer upward revision in power purchase agreement (PPA) for project developers who complete hydropower projects in two years.[break]
"Imposing a ban on strike and other disruptive activities sounds draconian. But given that undue protests and unrelated disturbances are posing difficulties in timely completion of hydropower projects, we found no other workable options," said Prime Minister Dr Baburam Bhattarai.
Dr Bhattarai, who interacted with economic journalists on Saturday, disclosed that the government is taking a tougher stance on power generation while referring to current power-cuts, which stand at 14 hours a day, and resistance faced by hydropower project developers, something which has been affecting them to complete projects on time.
He said the government will soon finalize the law that will empower it to declare State of Energy Emergency in the country and facilitate harnessing of hydropower potential at war-footing, not allowing anybody to resist it. "We have to get tougher now, for if we do not act now, the country will suffer for years in the future," he stated.
Citing that mere lip service will not fetch the country higher economic growth, jobs and social justice, Dr Bhattarai said, "We need huge investments to attain them. But who will put in the money in industries and businesses if we cannot even provide them round the year uninterrupted power supply," he reasoned.
He even clarified that such a tough law will be in force only till the country builds a capacity to generate 2,500 MW of electricity round the year. "2,500 MW has been set as a minimum generation limit because we will need that much of electricity round the year if the country is to embark on a double-digit growth," he said.
Dr Bhattarai also disclosed that the government will soon offer upward revision of PPA for developers that complete construction and supply electricity in the national grid in two years. "A proposal is already in the Cabinet. We will take a decision shortly," said Dr Bhattarai, adding that the government is also offering additional incentives to encourage the ongoing power development works to speed up their performances. The incentives could be in any form -- from tax incentives to other packages, he stated.
Talking about the current shortage of petroleum products, PM Bhattarai said his government alone could do nothing about it. "We talked with senior leaders of all parties about the price hike and they agreed. But once out of the meeting room, they enticed their student unions to protest it. How will we be able to address the problem if politicians do not act fairly," Dr Bhattarai asked.
Nonetheless, he noted that Nepal -- which completely fulfills the demand through import -- can neither afford to subsidize petroleum products nor sustain it. "There must be a national commitment to deal with this mess," he said, putting the ball in the court of other political parties.
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