Nepal: Budget focuses on hydropower, electricity export to Bangladesh begins from next year

May 29, 2024

Kathmandu (Nepal), May 29 (ANI): Nepal has laid its focus on production of electricity and export to Bangladesh from the next fiscal year 2024-25, said Finance Minister Barsha Man Pun while unveiling the budget on Tuesday. Addressing a joint session of the Parliament on Tuesday, Minister Pun said that, "the budget of NRs 1.96 trillion for the upcoming fiscal year announced to prioritize hydropower, especially, the reservoir-based hydroelectric projects. To achieve the target, a budget amounting NRs 50.74 billion has been allocated for the development of the energy sector. Nepal intends to increase its hydropower generation capacity, taking advantage of its expanding power market access in Bangladesh. As per the Finance Minister, the government also will start the construction of hydropower projects with large generation capacity. He said the construction of the 1200 MW Budhigandaki Hydropower Project and the 1061 MW Upper Arun Hydropower Project would be started. Additionally, he announced that the government would start the construction of the 783 MW Sunkoshi III hydropower project. The government aims to connect 100 MW of solar projects from the private sector to the national grid as well. The budget comes after an agreement over the Terms of Reference (ToR) of the parliamentary investigation committee with the agitating opposition Nepali Congress.