Kathmandu: Independent Power Producers’ Association of Nepal (IPPAN) has appealed to the Home Minister and the Energy Minister, citing increasing security threats to hydropower projects in recent times.
On Sunday, IPPAN Chairperson Ganesh Karki wrote to both ministers, stating that demands for 10 percent free shares—contrary to government policy and law—and obstructions in projects that are completed, under construction, or about to begin construction have compelled them to seek government protection.
The letter highlighted the importance of the energy sector as a key driver of Nepal’s economic prosperity and urged the government to ensure an investment-friendly environment where investors can feel secure.
Specifically, the letter pointed out that the 45-megawatt Bhotekoshi Hydropower Project in Sindhupalchok has been shut down for the past 17 days due to demands from a group called the “Gen-Z Group” under Bhotekoshi Rural Municipality, which insisted on 10 percent free shares. As a result, the project has already lost over 160 million rupees, with around 9.8 million rupees in daily losses.
IPPAN also drew serious attention to the fact that even routine maintenance and monitoring work has been obstructed since the plant’s shutdown.
Similarly, in Jugal Rural Municipality of Sindhupalchok, letters have been sent to 10 hydropower projects demanding free shares in the name of local residents. The letter stated that such practices—along with additional demands in other regions—are escalating, disrupting projects and prompting IPPAN to call for the maintenance of peace and security at these sites.
The letter warned that such obstructions increase both project costs and completion time, while severely discouraging private sector investment.
It further noted that in recent years, attacks, vandalism, arson, and other violent actions against energy projects have been on the rise.
Because of this, private investment has become increasingly insecure. Hence, IPPAN has also demanded the government to formulate a separate Energy Security Policy to provide long-term guarantees of investment security for both domestic and foreign investors.
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