The Nepal Electricity Authority, the Ministry of Energy and the Ministry of Finance expressed their ignorance saying that they did not know
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Power producers have united against the announcement of power purchase and sale agreement (PPA) as per the 'take and pay' (take and pay) provisions of the run-of-the-river (ROR) hydropower project in the next financial year's budget. In a public event organized by the Independent Power Producers Association, Nepal (IPPAN) under a black banner on Thursday, they also demanded the resignation of Energy, Water Resources and Irrigation Minister Deepak Khadka.
The promoters say that from the Executive Director of Nepal Electricity Authority, Hitendradev Shakya, Energy Minister Khadka to Finance Minister Bishnu Paudel, they did not send it and instead of taking responsibility, the promoters say where it came from. In the meeting of the licensee promoters of the hydropower project based on the flow of the river, they held the opinion that if the point that came through the budget is not resolved, they should go ahead with a phased movement and go up to 'blackout'.
Addressing the meeting, IPPAN President Ganesh Karki said that he saw no other option than a decisive movement against 'Take and Pay'. He said that the future of the 17,000 megawatt capacity project is in doubt due to a small sentence in one point of the budget and more than 66 billion rupees that have already been invested are at risk.
"Finance Minister, Energy Minister, Energy Secretary and Executive Director of Nepal Electricity Authority have said that they do not know how the subject of 'Tech and Pay' came into the budget.
Even if there is no proposal from the official body, it has been kept in the budget that the energy sector will be completed in a verbal proposal on the basis of power and access. If the field runs out, so will the energy producers. Producers had to either be ready to hang or ready to protest.
The way the carpet industry flourished before, now the game has begun to end the energy sector in the same way, said Mohan Kumar Dangi, senior vice president of IPPAAN. "This is not something that happened overnight. Planned actions are being taken to lock 33 percent shares of the promoters, not allowing the IPO of the project without turning on the lights, not allowing 20,000 MW projects to be built due to a decision of the Supreme Court and now not allowing another 17,000 MW projects to be built, he said. Balram Khatiwada, General Secretary of IPPAN said. He also told that the government will not remove this provision without a struggle. According to him, attention should be paid to the extent to which the issues of the private sector are being covered in the Electricity Act, saying that they are going to introduce a law that is more dangerous than the 'Take and Pay' provision in the Electricity Act.
Energy promoter Gore Sherpa said that since those in the leadership cannot walk away saying that they do not know, either they should go on a protest with Ippan or the Minister of Energy should resign. "Those in leadership don't know, so whether they should protest together with IPPAN or the energy minister should resign," he said, "We should also find out whether the bank will invest in a project with take and pay PPA." "A person like the Minister of Energy can say where the budget came from?" he asked. Ippan's team reached Finance Minister Paudelko with Energy Minister Khadka only last Tuesday to correct the 'take and pay' provision. When the Minister of Finance said that he should consult to correct the said point, the Minister of Energy said that if this arrangement is not corrected, he will also join the private sector and participate in the protest.
When the Ministry of Energy brought a roadmap to produce 28,500 megawatts of electricity, the Ministry of Finance did not touch the matter anywhere in the budget. On the contrary, by including PPA in the 'take and pay' of projects based on river flow, the investment made in this sector has been put at risk. If this arrangement continues, only about 3 dozen semi-reservoir hydropower projects with a capacity of about 2,000 megawatts, which are currently under study, will be PPAs.
