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In the year 2050/051, the number of customers consuming electricity was around 20 to 2.5 million. There was a problem of load shedding when the power generation capacity in the country was 500 megawatts. At a time when no new power projects were being built and foreigners were reluctant to invest in Nepal, the government was supporting the liberal market economy.
An agreement had been reached to build the Khimti hydropower project with foreign investment, while the authority itself was taking initiatives to create a trusting environment to attract domestic and foreign investment to build projects such as Arun 3rd, Bhotekoshi, Upallo Marsyangdi, Puva Khola, Indrawati 3rd.
The general public and the leaders of the water resources sector were disagreeing with the authority's decision to increase the electricity tariff to become financially capable and to build new projects. Ekathari said that the donors have pressured to increase the fees to make Arun 3rd . Officials of the authority said that the increase in the tariff was natural as the wages of workers increased from Rs 10 to Rs 60 per day and other economic activities were also increasing. Stakeholders claimed that since the Authority has increased it by 300 percent in the last two years, its justification could not be confirmed.
2051 In a formal program on foreign investment in water resources held in Kathmandu on May 6, 2051, experts suggested the increase in electricity tariff, investment in Arun and the construction of power projects by the authority itself. Especially, the foreign investors were talking about the structure and good governance of the authority to make the third Arun project . In this background, the stakeholders raised the issue of consumer rights saying that the justification of the 300 percent increase in electricity tariff could not be confirmed.
The official of the World Bank, which is preparing to invest in Arun, was expressing doubt that there would be a problem in returning the investment as the authority is not financially capable. They said at that time that there should be no political interference in the authority and it should be institutionally strong.
Association of Development Organizations of Nepal (ADAN) and Godavari Alumni Association (GAA) organized the discussion on sustainable investment in Nepal's hydropower, Dr. National Planning Commission member. Vinayak Bhadra called it natural to increase the electricity tariff. He said that the government is going to stop the process of giving electricity subsidy based on the cost of electricity production and distribution.
Bhadra said that the tariff has been increased on the recommendation of the Electricity Tariff Committee. In the context of the low tariff in India, he said, 'In India, it has become cheaper because of the subsidy provided by the government.'
Minister of Natural Resources and Rashtriya Prajatantra Party MP Pashupatishamsher Rana claimed that the electricity tariff was increased because of Arun. He said that tariff determination was also one of the reasons for the delay in the implementation of the Arun project.
Ekathari said that due to the circumstances arising after the termination of the Nepal-India Transit Treaty, the tariff has increased. India had 'blockade' Nepal for 15 months in 2045 without renewing the treaty. In the same context, MP Rana said that the subject cannot be made a base.
Stakeholders demanded that the policy of taking concessional loans from foreigners but giving the same loans to the authorities as commercial loans should be removed. Ajitnarsinh Thapa, the executive director of the authority, informed that the loan given by the charitable organizations to the government at 1 percent, the authority gets 8 to 10 percent . The government explained that the commercial loan was given to the authority because the government has to bear the risk of the loan.
At that time, the annual profit of the authority was about 500 million . It was possible to build a power project with that amount. Executive Director Thapa informed that the Puwa Khola and Upper Marsyangdi authorities are preparing to design and build. The news prepared by Kantipur Daily focused on the discussion between experts and stakeholders about electrification, construction of power projects, increase in electricity tariff and bringing in foreign investment was published on May 6, 2051 under the title 'Rise of electricity price due to Arun' .
Presentation: Rishiram Paudyal
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