The Independent Power Producers’ Association, Nepal (IPPAN), has urged the government to introduce a comprehensive relief package for hydropower projects severely affected by recent floods and landslides.
During a meeting with Minister for Energy, Water Resources, and Irrigation Kulman Ghising on Wednesday, IPPAN representatives stressed the urgent need for government support to facilitate the reconstruction and recovery of damaged hydropower infrastructure.
According to a press release issued by the ministry, Minister Ghising assured that he would make every effort to extend maximum relief to the affected projects. He also stated that he would propose concrete solutions for hydropower projects related to forest and environmental clearance issues in the upcoming cabinet meeting.
IPPAN’s Demands
IPPAN President Ganesh Karki highlighted the need for a relief package addressing all hydropower projects damaged during multiple disaster events-specifically the floods of June 15–16, 2023, June–August 2024, September 27–28, 2024, and October 3–4, 2025.
The association presented seven major demands, including:
Customs Duty Relief: Allowing the import of essential machinery and equipment for reconstruction with only 1% customs duty.
RCOD Extension: Extending the Required Commercial Operation Date (RCOD) for under-construction flood-affected projects by three years, and the license validity by five years.
Financial Support: Facilitating loan restructuring, refinancing, and long-term financing arrangements for affected projects.
Capital Market Access: Ensuring the rapid issuance of halted IPOs and rights shares of flood-affected projects.
Policy Recognition: Declaring flood-damaged hydropower projects as ‘crisis-ridden’ to enable swift policy interventions.
PPA Flexibility: Abolishing the provision that automatically converts projects to a ‘take-and-pay’ Power Purchase Agreement (PPA) if they fail to start electricity generation within fiscal years 2025/26–2027/28.
Karki emphasized that these measures are essential to ensure the financial stability of the energy sector and to maintain investor confidence amid recurring climate-related disasters.
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