By A Staff Reporter

Kathmandu, May 13: Minister for Energy, Water Resources and Irrigation Barshaman Pun Tuesday said that the government would address the problems of hydropower and other sectors created by the COVID-19.
“The ministry will play a role to address the problems of the private sector, including power producers. The ministry will resolve the problems which fall under its right itself and will facilitate to endorse policy from the parliament if required,” he said at a video conference organised by the Society of Economic Journalists Nepal here today.
Stating that a huge problem had been seen in power purchase agreement (PPA), financial closure and generation licence, among others, in the hydropower sector due to the impact of COVID-19, he assured to resolve all these issues.
“We have to think with new dynamism to revive the affected sectors and create additional jobs as a large number of people have lost their jobs from the impact of COVID-19. We have to create jobs for at least 2.1 million people as around 1.1 million working in the industrial sector in the county have lost their jobs and around 1 million migrant workers will return home from abroad,” he said.
All the ministries and concerned government bodies will work to create additional job opportunities in the country, he said.
Every sector, including people, should share the losses in the economy from their sides, he said. “However the government will bring a relief package for the affected sector.”
Talking about the upcoming budget, he said the ministry would allocate required amount of budget for carrying out the mega projects in all states.
“We are planning to begin the works of mega hydropower projects including 635 MW Dudhkoshi reservoir, 100 MW Tamakoshi-5, 1,200 MW Budhigandaki, 48 MW Bheri Babai Project, 400 MW Jagadulla, 410 MW Nalgadh, 420 MW Betankarnali and 1,000 MW Karnali SR including West Seti by maintaining a provincial balance,” he said.
He said that the works of these projects would start by completing the feasibility studies and arranging the required investment.
Minister Pun said that the ministry had proposed to split the Nepal Electricity Authority and give power distribution authority to the States in the next fiscal year.
He also said that the government had set a target to distribute power all across the country within next two years where the government would manage the resources for all States in this regard.
Likewise, the ministry has also proposed to provide 10 units of electricity for consumption free of cost and provide subsidy in electricity for those who use induction stoves.
Shailendra Guragain, president of Independent Power Producers’ Association of Nepal, urged the government to facilitate to continue the construction works of ongoing projects in the coordination of the local and State governments.
“It is a must to continue the works of projects which have to be finished before the rainy season,” he said.
The cost of the ongoing construction projects and operating projects would increase by at least 15 per cent due to the impact of lockdown, he said.
He said that the hydropower entrepreneurs were looking for the policy level support from the government instead of financial relief to overcome the additional burden faced by the projects due to the coronavirus.
The new budget should focus on attracting investment in the hydropower projects where the single desk mechanism is a must to facilitate investment, he said.
“Existing investment policies are discouraging the investors as there are lengthy procedures to follow and we are expecting correction in the procedures,” he said.