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Minister Urged to Restart Hydropower Projects Halted by National Park Authorities

News Summary

  • The Independent Power Producers’ Association, Nepal (IPPAN) has urged Minister for Agriculture, Forest and Environment Gita Chaudhary to resume work on five hydropower projects halted inside Langtang National Park.
  • IPPAN Chair Ganesh Karki expressed the private sector’s disappointment over the stoppage of projects despite environmental impact assessments being approved.
  • Minister Chaudhary assured facilitation for restarting hydropower projects and informed of planned policy reforms.

Kathmandu, June 26 – The Independent Power Producers’ Association, Nepal (IPPAN) has drawn the attention of Minister for Agriculture, Forest and Environment, Gita Chaudhary, demanding the resumption of work on five hydropower projects whose construction was ordered halted by Langtang National Park authorities.

A delegation led by IPPAN Chairman Ganesh Karki met Minister Chaudhary on Wednesday to urge the creation of an enabling environment for the swift recommencement of these nationally prioritized hydropower projects.

Presenting the petition, Chairman Karki highlighted that despite the approval of environmental impact assessment (EIA) reports for these projects within the park, construction remains stalled. This has led to discouragement within the private sector. He appealed to the minister for necessary facilitation.

“The Ministry of Energy collects significant revenue by issuing development permits; meanwhile, a division under the Ministry of Forest approves the EIA reports. Yet, another agency prevents project progression, thereby halting construction. This inconsistency is inappropriate. The ministry must facilitate private sector promotion,” he stated.

Karki further noted that persistent halts over four to five years related to tree cutting and land use permits have added to the delays, despite approvals from other agencies. He warned that such increased obstacles could hinder the government’s ambitious target to generate 30,000 megawatts of electricity within the next ten years.

He also suggested that as the government prepares a sunset policy to phase out certain arrangements, the ministry should actively support and facilitate ongoing projects.

Minister Chaudhary assured that her ministry would provide the required facilitation to initiate hydropower projects. She also mentioned imminent policy reforms aimed at addressing the current challenges faced by development projects.

Currently, five hydropower projects with a combined installed capacity of 153 megawatts are under construction in Sindhupalchok District by the private sector: 36.5 MW Brahmayani, 20.52 MW Upper Brahmayani, 9.7 MW Brahmayani-A, 40 MW Balefi Khola, and 46 MW Upper Balefi hydropower projects. These projects were ordered halted through a letter issued by Langtang National Park authorities.

While the Government of Nepal has granted development permits through various agencies, and the Ministry of Forest has approved the relevant EIA reports, the park administration’s directive to stop construction contradicts these approvals. IPPAN advocates for facilitation rather than obstruction in project implementation.

Senior Vice President of IPPAN, Mohankumar Dangii, emphasized the importance of government-private sector collaboration for national development.

IPPAN has also met with Dr. Buddhisagar Paudel, Director General of the Department of National Parks and Wildlife Conservation, requesting revision of the directive halting construction inside the national park. They urged the Ministry of Forest to ensure that activities proceed according to the approved environmental impact assessments.

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