KATHMANDU, July 13 - The government has decided to formulate programmes to develop 25,000 MW in the next two decades. The previous government led by UCPN (Maoist) had projected development of 10,000 MW in the next ten years.
 
The allocated budget for hydropower is Rs. 14 billion 690 million for this fiscal year. This marks a 131 percent rise compared to the revised estimates of the previous fiscal year.

Construction work at the 130 MW Upper Seti, a reservoir type hydro project will be initiated as a project of national priority and pride. Likewise,  work on the 456 MW Upper Tamakoshi Hydropower Project — the first big project being implemented with domestic investment — will be initiated. It is expected to be complete in fiscal year 20122013.

Meanwhile the government has also stated it will expedite construction of various middle scale hydropower projects including the 60 MW Upper Trishuli, 30 MW Chameliya and the 27 MW Rahughat among others.

 Preliminary work on Pancheswor Multip-urpose Project will be initiated by developing infrastructure like access road to the project site and ropeway construction.

Construction of Naumure Hydroproject will be initiated along with other multi-purpose projects like Sunkoshi-Kamala diversion and Bheri-Bababi diversion. The private sector will be encouraged to construct large scale projects such as Arun III, Upper Karnali, and West Seti.

The government will give emphasis to feasibility studies of new projects along with extension and repair of transmission lines.
 
Immediate import of 30 MW from the second circuit of Kataia-Kusaha and 30 MW from the point of Surajpura will be initiated. Extension lines will be constructed in Birgunj, Biratnagar, and Kusaha for additional import of power.
 
According to hydro expert Gyanendra Lal Pradhan, in overall terms the budget looks good, but it does not reflect a clear cut policy for implementation of VAT subsidy on construction materials like cement and iron rods.

“The government’s plan to develop 25,000 MW in the next 20 years is unrealistic and has been mentioned in the budget just to make it populist. The government should have continued with the Maoist proposal of 10,000 MW and worked on implementing that successfully,” he said.

Likewise, the government should have proactively involved the private sector along with the international sector for construction of hydropower projects.

Pradhan also underscored the need to revise the Power Purchase Agreement to lure the private sector towards hydropower development through a new policy.