Prime Minister Pushpa Kamal Dahal “Prachanda” has said that the government is firmly heading for the development of the energy sector and it will create history.
Addressing the ceremony held on the occasion of the breakthrough of the Arun-3 Hydropower Project on Tuesday, PM Prachanda said the government in the 2024/25 budget made sufficient effort to attract private investment in the energy sector.
He informed that Nepal will have an additional 900 MW of electricity in the national transmission line which will amount to 4500 MW and pursue exporting electricity to Bangladesh.
In this address, he emphasized a renewed focus on energy, particularly hydropower, as a pivotal driver for Nepal’s development.
The government is prioritizing large hydropower projects as catalysts for change. Notably, progress has been made on projects like the Budhigandaki hydropower project, and further studies have commenced for the Karnali Chisapani hydropower project with a massive capacity of 10,800 megawatts.
Prachanda highlighted collaborations with neighboring countries—India, Bangladesh, and China—for electricity trade. This step signifies regional cooperation and energy security.
To address resource challenges, the government allocated infrastructure tax from petroleum products to the Budhigandaki hydropower project, ensuring a dedicated funding source for critical energy initiatives.
Updates on ongoing projects, including the Arun III hydropower project and the Upper Arun hydropower project, were provided. Additionally, power purchase agreements with the private sector for 9,164 megawatts of hydropower projects were highlighted.
Prachanda also outlined reforms in the agricultural sector, including a production-based subsidy system and plans for the Decade of Investment in the Agricultural Sector (2081-2091). Transforming traditional agricultural practices is crucial for sustained growth.
The Prime Minister’s address reflects a comprehensive vision for Nepal’s future, combining energy self-sufficiency, economic development through agriculture, and the promotion of tourism, all aimed at achieving rapid and sustainable transformation
