After the change of 2046, the government led by the Nepali Congress had emphasized the policy of economic liberalization since 2048. Some people are still accusing the Congress of ruining Nepal's industries in the name of economic liberalization, selling industries and shutting them down through political interference.

But the investment that started in electricity generation through liberalization is continuing 'successfully' till now. As a result, the production of the private sector is more than twice that of the government-owned Nepal Electricity Authority and its subsidiaries.

Currently, about 3,400 megawatts of electricity is being produced in Nepal. Hundreds of projects are in the construction pipeline led by the private sector. At the end of the Panchayat period, around 500 megawatts were produced, while there were about 2 million customers consuming electricity across the country. 

Private sector investment electricity production and consumption increased rapidly after the release of the Electricity Development Policy 2049. The electricity policy started to attract domestic and foreign investment for project construction . From time to time, electricity laws and regulations are being changed to suit the private sector.

About 32 years ago, i.e. in the 50s, let alone the running of large factories in the country, the common people did not even have access to electric light like it does now. Most parts of the country were in darkness, while urban areas also suffered from loadshedding. 

The government itself did not have the financial capacity to build large power projects. Arun, which can be built with a large investment, started the initial work by deciding to proceed with the third hydroelectric project, but it became uncertain due to political disputes, "rights activists" and opposition from social organizations. But the government concluded that if the electricity production cannot be increased by bringing in investments, many possibilities of economic development will be stopped. 

During the efforts made on the basis of the same conclusion, foreign investment was gathered in the construction of 60 MW Khimti-1 hydropower project. In the name of bringing in private investment, some people put forward a strong argument that power purchase agreement (PPA) should not be done in US dollars. At that time, the plan to invest in the Bhotekosi hydropower project of 36 MW (currently 45 MW) in Sindhupalchowk was also put forward. The condition was that the electricity produced by Khimti and Bhotekosi should be purchased in dollars. In the mentioned background, when the talks of both the projects were in the final stage, the government made the first agreement for the construction of Khimti. 

Initially, the government was preparing to issue a new law only for Khimti, but the promoters and experts of the electricity sector demanded that a single umbrella law should be brought including the private sector. Later the electricity policy was brought accordingly. 

An agreement was signed between former Ministry of Water Resources and Himalaya Power Limited on 17th Chait 2050 for the construction of Khimti-1 project located on the border of Dolakha and Ramechhap. This was probably the first attempt to build a power project with foreign investment in the history of Nepal. The agreement was signed in the presence of Water Resources Minister Laxman Ghimire. The agreement was signed by Permanent Secretary Suryanath Upadhyay on behalf of the Ministry of Water Resources, Ajit Narayan Singh, Executive Director of Electricity Authority and F. Peter Harwood, Director, on behalf of Himalaya Power.

Bootlaw Power Company Limited and Norbeko Statkraft, ABB Energy and Kamairner Energy were formed together with the Himalaya Power Company . The construction of the project was done by Himal Power Company. On the one hand, the government officials used to say that due to the increased political conflict that it will be difficult to bring the Arun project, there is a need to send a message that the private sector can also build a power project. In addition, if the Arun, which is supposed to be invested by the World Bank, is stopped, the concern that investors' confidence in Nepal will decrease was also a topic of debate. At that time, the left-wing party, which was in the opposition role in the parliament along with the UML, was raising strong voices against Arun from the streets and the house. 

The government was worried that foreigners would understand that there is no investment environment in Nepal. That's why the authorities of the time said that they tried to ease the electricity supply by building projects like Khimti and Bhotekosi with foreign investment. On the other hand, according to the plan to end the load-shedding that the country is experiencing and effectively advance the rural electrification program, emphasis was placed on the investment of the private sector. It was agreed that Khimti will proceed with the goal of producing electricity in November 2054.

It was estimated that 90 million US dollars will be spent for the construction of the project in addition to the financial expenses incurred by the Ministry of Water Resources . The construction of the project was started by the shareholders of Himalaya Power investing 28 percent. Other investments were expected to be loans from Asian Development Bank, World Bank, International Corporation, Norwegian Development Corporation, Norwegian Export Finance Corporation and local financial institutions. It was estimated that there will be about 6 billion investments of domestic and foreign in the project . The government official informed that the largest private sector investment in Nepal is in Khimti.

With the government's intention to convey the message that the private sector can also build power projects in Nepal and that foreign investors are also interested in it, the news titled 'Major investment in hydropower by the private sector' prepared by the National News Committee (RASS) was published by Kantipur on 18 Chait 2050. After the

, an agreement was reached to build Votekosi project with American investment. The project of 36 MW at that time was later made 46 MW . The process of construction of 7.5 MW Indravati 3rd in Sindhupalchowk was started with the investment of only Nepalese. Therefore, Khimti and Bhotekosi were built with foreign investment, while Indravati, the first power project in Nepal in which only Nepali participated, is the third. All the three projects are still in operation.