Finance Minister Swarnim Wagle, while presenting the budget for the fiscal year 2083/84 on Friday, said that the Authority will be divided into three separate divisions: generation, transmission and distribution, and trade.
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The government is set to restructure the Nepal Electricity Authority. Finance Minister Swarnim Wagle, while presenting the budget for the fiscal year 2083/84 on Friday, said that the authority will be divided into three separate entities: generation, transmission, and distribution and trade.
Finance Minister Wagle said that arrangements will be made to cancel the licenses of projects that have power purchase agreements but have not started construction and make new PPAs on the 'take or pay' method. He said, 'PPA will be made immediately for projects with a capacity of less than 10 megawatts. We will make arrangements to determine the power purchase rate in the dry season and make arrangements to make purchase agreements.'
The budget statement also mentions that arrangements will be made for the private sector to trade electricity in the international market. Finance Minister Wagle has also announced that arrangements will be made to adjust the occupancy rights of forest land and fees for tree felling when the ownership of the project is transferred after the permit period of the hydropower project.
To encourage the private sector to develop large and reservoir-based hydropower projects, Finance Minister Wagle has announced that 40 percent of the shares will be allowed to be sold to the public in the first year if the promoter ensures that 100 percent of the funds will be invested in the reservoir-based project.
