Kathmandu: Ganesh Karki, president of the Independent Power Producers’ Association of Nepal (IPPAN), has stressed that the country’s path to economic prosperity fundamentally depends on the development of its energy sector, particularly hydropower. Speaking during an interaction with members of parliament, Karki argued that without expanding energy production and infrastructure, it is unrealistic to envision meaningful progress in any other sector of the economy.
Karki highlighted that Nepal’s abundant water resources give it a natural advantage, but this potential remains underutilized due to persistent policy and structural bottlenecks. He urged lawmakers and the government to take urgent steps to remove these barriers, which continue to delay or derail hydropower projects. According to him, the lack of coordinated policy support and cumbersome approval processes has discouraged investment and slowed down implementation.
To accelerate progress, Karki proposed an ambitious approach: the introduction of a special legal framework or even the declaration of an “energy emergency” for a period of ten years. Such a measure, he argued, would allow the government to fast-track decisions, streamline procedures, and prioritize energy development at a national level. He believes that extraordinary intervention is necessary to unlock the sector’s full potential and meet growing domestic demand.
A major point of concern raised by Karki was the role of environmental and forestry regulations, which he described as overly restrictive and not aligned with development goals. He pointed specifically to policies under the Ministry of Forests and Environment, stating that they often act as a barrier rather than a facilitator for infrastructure projects. Strict rules governing national parks and forest areas, he said, have made it extremely difficult to build roads, industrial facilities, and hydropower plants, effectively stalling progress in multiple sectors.
Karki went further to suggest that the current regulatory environment creates the impression that the forestry authorities operate independently of broader government priorities. He emphasized the need for better coordination among ministries and called for the immediate implementation of a “single-window” system to simplify approvals and reduce bureaucratic delays.
In addition to policy reforms, Karki underscored the importance of maximizing domestic electricity consumption. He argued that Nepal should prioritize using its own generated power to meet internal needs before exporting surplus electricity. Increasing domestic demand, he said, would not only strengthen the economy but also ensure better returns on investment in the energy sector.
He also pointed to the growing public interest in hydropower projects, noting that even small investors who purchase a handful of shares take pride in being part of such ventures. This rising enthusiasm, he suggested, reflects the sector’s potential to mobilize local capital and foster a sense of ownership among citizens.
Looking ahead, Karki called on the government to open up transmission line development to the private sector, similar to how power generation has been liberalized. He expressed confidence that private investors are both capable and willing to invest in transmission infrastructure if given the opportunity. Expanding private sector participation, he argued, would help bridge the gap between power generation and distribution, ensuring that electricity produced can be efficiently delivered to consumers.
Karki’s remarks come at a time when Nepal is striving to balance economic growth with environmental sustainability. His call for reform reflects a broader debate about how to harness natural resources responsibly while removing obstacles that hinder development. As policymakers consider the future of the energy sector, his proposals are likely to fuel further discussion on how best to align regulation, investment, and national priorities.
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