In 2050, the phase of economic liberalization had already started. But the government did not have a policy to purchase electricity produced by the private sector. Therefore, the private sector was hesitating to invest in power generation due to the fear of sinking investment. Even if you want to invest, the situation has become a situation of what will happen tomorrow when voices are being raised loudly on the streets and in the House that the 402 MW Arun 3rd hydropower project is not in the interest of the country.

Lenders, including the World Bank, were reluctant to invest in Nepal, especially due to opposition from left-wing parties, national/international organizations and stakeholders. But the demand for electricity in the country was high. Therefore, there was a situation of not being able to supply electricity and fearing to invest in the industrial sector . 

In the last week of December 2050, a two-day development problem solving committee meeting held in Kathmandu under the chairmanship of the then Prime Minister Girija Prasad Koirala submitted a report that small and large industries with an investment of nearly 40 billion are hesitating to operate even after obtaining permission. The main reason why foreign and domestic investors hesitated in the operation of the industry was the problem in electricity supply.  According to the data presented by the Ministry of Industry in the

meeting, 113 industries had obtained licenses for joint investment. Similarly, 3 thousand 900 small and big industries took permission from the private sector. But when they saw that the government could not supply electricity, they were afraid to invest. Prithviraj Legal, a member of the National Planning Commission, informed that the industry has not been established even though the licenses have been distributed. He said in the meeting, "Cement industries have been particularly affected due to lack of electricity supply and irregular power cuts."

The government adopted a strategy to bring in investments by encouraging the private sector after the political change of 2046. In the review meeting of the quarterly period of 2050/051, the members of the Planning Commission suggested that small power projects and thermal plants should be set up by attracting the private sector. Legal, a member of the commission, suggested that private joint ventures or public enterprises should be immediately attracted to set up thermal plants of 5 megawatts and above. It was held that investment cannot come in without providing more facilities to the private sector . In the meeting, Prime Minister Koirala asked for coordination between the Ministry of Industry and the Authority.

Since the private sector wants to invest in electricity production, they have been requesting to create an environment where the government will purchase the electricity produced. Legal, a member of the commission, put forward a proposal with the suggestion that entrepreneurs who come for investment should be given foreign currency loans with savings in the government fund and guarantees for the purchase of produced electricity . Although the Electricity Act 2049 was promulgated, there was only a discussion on the provision of the government to purchase electricity produced by the private sector.

There was a suspicion that even the private sector could build a power project. After Shailaja Acharya became Minister of Water Resources in 2054, a policy was implemented for the government to purchase up to 1 megawatt of electricity produced by the private sector. Since then, the policy of purchasing electricity produced by the private sector has been maintained by the authority. As there was talk of building projects like Arun, Khimti, Bhotekoshi, the government was hesitating to make a policy for purchasing electricity. 

The permanent secretary of the Ministry of Water Resources, Suryanath Upadhyay, had argued that it would be difficult for the Electricity Authority to buy power even though there are talks about it. Especially since the cost of electricity production is high, the government side could not be clear about the purchase . Until then, there was no legal system for the government to purchase electricity produced by the private sector. There was a general belief that the private sector can also produce electricity, but investors were not sure because there was no guarantee that the government would purchase the electricity produced.

There was a big problem not only in electricity supply, but also in the collection of the tariff for the consumed electricity . That is why the then Minister of State for Water Resources, Lakshman Ghimire, warned that those who do not pay the electricity charges will be cut off. He warned that if the electricity bill consumed in his office is not paid on time, he will cut the line . Almost 32 years ago, because it was difficult to collect the electricity tariff used in government offices than in private residences, State Minister Ghimire made an opinion by 'focusing' on the government officials.