No monetary policy to facilitate energy promoters: Ippan

At a time when the private sector is advancing aggressively in Nepal's energy development, the Nepal Rastra Bank has expressed that all the private sectors involved in energy development and IPPA have taken serious notice of the monetary policy announced by Nepal Rastra Bank last Friday.

'In the monetary policy program held in Thapathali in the presence of Governor Mahaprasad Adhikari, IPPAN clearly stated its demands and provided them in writing to Nepal Rastra Bank,' the release states, 'but any attraction and facilitation to private sector energy developers through monetary policy. Ippan has a serious objection to the lack of a policy to attract the private sector.

'In spite of the fact that the policy makers in Parliament, from the Prime Minister to the Ministers and even the Governor of the National Bank of the Republic of Indonesia, have been publicly announcing that policies will be brought to attract the private sector, it is not only against the private sector, but it is a serious objection that discourages the private sector. ,' the statement said.

In the 16th five-year plan created by the National Planning Commission and in most of the government's policies, it has been mentioned that the private sector's role in energy production will be given high importance, creating an investment-friendly environment and attracting private investors. But Ippan believes that the government's behavior and style towards the private sector has gone in the opposite direction due to the neglect of the private sector in both the government's financial policy (budget) and monetary policy .

The Electricity Bill has been submitted to the Parliament as it is retrogressive to the Electricity Act, 2049, which will kill the investment and future of the private sector. According to Ippan, the power development department under the ministry and the Nepal Electricity Authority have not implemented the decisions made by the Ministry of Energy to solve the problems faced by the private sector. "With no policy and program to help implement the agreement between the two countries to export 10,000 megawatts of electricity to neighboring countries within 10 years, the private sector's trust and confidence in the government has been doubted," the statement said.

Ippan is of the opinion that if the policy and implementation reform and facilitation are not done immediately to encourage the private sector energy developers, there will be a big problem in the overall energy development and if any of the government's goals are not achieved, the country's economy will be seriously affected .

According to Ippan, 182 projects worth 2500 megawatts have been completed so far only from the private sector. 137 projects worth about 3900 megawatts are under construction. 136 projects equal to 3900 megawatts are waiting for financial management after signing a power purchase agreement (PPA) with the Nepal Electricity Authority. 80 percent of the 10,700 megawatt projects that applied to the Power Development Department for construction after completing the survey permit and 10,000 megawatts that applied to the Authority for PPA after obtaining the construction permit have proceeded under the leadership of the private sector.