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December 16: The government has announced various measures aimed at removing policy obstructions to facilitate development of hydropower projects in the country. Speaking at the Power Summit ‘16 organised by the Independent Power Producers’ Association, Nepal (IPPAN), Prime Minister Pushpakamal Dahal said that the policy changes would secure and guarantee investments of private power producers. The two-day event began in the capital on December 15 with the main theme of “10,000MW in 10 Years”. The policy changes will come as value added tax (VAT) rebate of Rs 5 million per megawatt produced by the private producers. Similarly, the government has announced that it will not engaged in development of hydropower projects lesser than 100MW capacity. Similarly, it also plans to replace the existing ‘Take and Pay’ provision with ‘Take or Pay’. Under this the government will purchase all the electricity produced by private producers. Likewise, minister Sharma also informed that the policy allowing the private producers to participate as institutional investors in government projects will also be introduced.
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