IPPAN Presents 7-Point Relief Demands to Energy Minister for Flood-Affected Hydropower

The Independent Power Producers’ Association, Nepal (IPPAN) submitted a seven-point relief proposal to Energy, Water Resources, and Irrigation Minister Kulman Ghising on Wednesday, urging immediate support for hydropower projects damaged by recent floods.

IPPAN President Ganesh Karki highlighted that hydropower facilities affected during Jeṭh 32, Asar 1 (2080), Asar–Saun 2081, and the latest heavy rainfall from Asauj 17–19, 2082, require comprehensive government assistance. The proposed relief package includes customs exemptions for machinery imports, extensions for commercial operation deadlines (RCOD) and license periods, debt restructuring, long-term financing, and expedited IPO or rights share issuance.

According to ministry data, 20 operating hydropower projects were affected by the recent floods. Seventeen projects with a combined capacity of 135 MW were fully shut down, while three projects totaling 156 MW were partially affected. Construction of 17 hydropower projects with a total capacity of 520 MW also sustained damage.

IPPAN’s seven-point demand to the Energy Ministry:

1. Customs duty of 1% for machinery and equipment required for reconstruction and repair.

2. Extension of RCOD by three years and license period by five years for under-construction projects.

3. Debt restructuring and refinancing options for flood-affected projects.

4. Accelerated issuance of stalled IPOs and rights shares.

5. Declaration of flood-affected projects as “crisis-hit” with necessary policy measures.

6. Provision of long-term financing to affected projects.

7. Removal of automatic termination of PPA agreements if production is not resumed within FY 2082/83 and 2084/85.

Minister Ghising assured that the government would take all possible steps to provide relief to the affected hydropower projects and would table related measures in the upcoming Cabinet meeting.