During the change of 2046, there were only electricity projects built by the government in the country. The desire for development increased with the attainment of democracy. There was widespread pressure from the people for electrification.

The private sector had not started power generation . Electricity crisis was increasing in the country. Although Arun proposed the construction of the third hydroelectric project, it was difficult to proceed due to the influence of domestic politics. Out of the total cost of Arun of USD 760 million, 400 million was received in the form of grants from donors. But especially the left-wing parties, including the UML, the main opposition party in the parliament, were opposing Arun . There was no possibility of attracting the private sector and producing electricity on a large scale without foreign aid . 

 In 2050 Baisakh, in the meeting of the Development Council chaired by Prime Minister Girija Prasad Koirala, it was concluded that electricity production will not be easy without encouraging the private sector. As the private sector is not able to build a power house immediately, it was decided to ask the private sector to advance the technology of generating electricity from solar . According to the decision of the council meeting, the discussion started at the government level to attract the private sector.

Potential hydropower projects like Kaligandaki (A), Khimti, Modi were proposed but the matter of investment and construction was not finalized . It was estimated that it would take another three years to produce electricity from the private sector. According to the directives of the National Council meeting, a plan was made to eliminate excessive consumption of electricity, reduce leakages and supply electricity from India. 

Bikas Parishad instructed to speed up the work of Duhvi-Kathaiya transmission line and give priority to Kohalpur Nanpara line to import 50 megawatts of electricity from India . When the private sector showed interest in the Modi and Khimti projects, it was instructed to change the policy of taking foreign aid for water resources development. The planning commission itself accepted the loan given by the charitable organization, except for Arun 3rd.

In the meeting of the Development Council, the members of the Planning Commission had suggested the government to make a policy of taking foreign aid in water resources. The then vice-president of the Planning Commission, Ram Sharan Mahat, told the meeting not to doubt that there would be a debt burden to build Arun. As the electricity production is very low, it was passed by the policy council meeting that priority should be given to alternative energy. The government decided to establish an alternative energy promotion center and it was decided to prepare a long-term energy plan . 

Since there are 25,000 water tanks in operation across the country, it was also assumed that electricity could be produced from them. The government decided to set up an electricity development fund to establish small power generation centers. The council meeting passed a proposal to establish an electricity department under the Ministry of Water Resources to coordinate and communicate with the private sector. The decision of the council was to study the feasibility of hydropower projects to attract the private sector to power generation. 

The government was clearly trying to encourage private sector investment in the construction of power projects . Even then, 20 MW of electricity was purchased from India. At that time, the investment made at the same time in Bhotekoshi, Khimti and Indravati third project was the first investment by both natives and foreigners. Since then, the private sector that has entered into electricity production has now become more powerful. 

is still more of the private sector than the power generation authority. Its foundation was laid at that time. However, since electricity was purchased from India three decades ago, Nepal has not yet been able to become self-sufficient. If you don't buy electricity from India every year, there is load shedding . Kantipur Dainik published a news on the front page on 31 Baisakh 2050 under the title 'Government active for electricity supply' covering the problems seen in electricity supply after the attainment of democracy, the incentives sought to be given to the private sector and the forced import of electricity from India.