The government led by Girija Prasad Koirala, formed after the 2048 elections, launched an open market economy policy to attract private sector investment. Hydropower Policy 2049 was issued to encourage the private sector to generate electricity. But the problem was compounded due to political mudslinging and failure to reach an all-party consensus on the use of water.

At that time, ``nationalism'' used to dominate the water . Therefore, even after three years of the formation of the government, the private sector was reluctant to invest confidently in energy production. Due to the political opposition to the Arun 3rd hydropower project, foreign investors were more concerned. 

After a long effort, it was almost certain that the Khimti project of 60 megawatts would be made with foreign private investment. An agreement was reached between the foreign investors of Khimti and the Nepal Electricity Authority to build a 60 MW power project in Chait 2050. The Arun 3rd hydropower project, which was proposed to be financed by the World Bank, could not proceed . Attempts were being made to bring in American investment in Bhotekosi. 

In the absence of investment in big projects, the Electricity Authority was leading the construction of the 144 MW Kali Gandak 'A' power project in Syangja. By 2051 Baisakh, 90 percent of the 28.5 km access road leading to the project had been constructed. In the late 1970s, the Snowy Mountain Engineering Corporation, an Australian consulting organization funded by the United Nations Development Program (UNDP), pioneered the project. Although the investment for the project had not been collected, the authority was making the entrance way by spending 15 crores.

Locals benefited from the construction of the access road. But the environmental impact and the rights of the affected people had started to be raised about the project. The technical study has almost been completed and the tunnel of the project was 6 km . The cost of the project, which has been studied since January 1991, was estimated to be around 150 million US dollars, ie 15.5 billion Nepalese rupees at that time. Niranjan Kapali, director of the