26th June 2025, Kathmandu
Energy entrepreneurs have sent a final warning via SMS to the chief whips of all major political parties, urging the government to withdraw the “Take and Pay” provision in the power purchase agreement (PPA) introduced in the new budget.
Energy Entrepreneurs Take Pay Warning
On the day the budget is set to be passed by Parliament, independent power producers simultaneously sent SMS messages to the chief whips of the Nepali Congress, CPN-UML, Maoist Centre, Rastriya Swatantra Party, Rastriya Prajatantra Party, CPN (Unified Socialist), and Janata Samajbadi Party, according to Mohan Kumar Dangi, Senior Vice President of the Independent Power Producers’ Association of Nepal (IPPAN) and coordinator of the protest committee.
Claiming that the “Take and Pay” PPA provision will halt private sector investment in the energy sector, they wrote in the SMS:
“Abolish the Take and Pay PPA that destroys the private sector in energy, brings back load-shedding, drowns investors, and crashes the national economy.”
In the budget unveiled on Jestha 15 (May 29), the statement, “…Power Purchase Agreements (PPAs) for run-of-river (ROR) hydropower projects will be carried out under the Take and Pay model…”, drew strong opposition from power producers, who have since been actively lobbying for its amendment. With the government showing little seriousness, they launched a “civil protest” campaign on Asar 6 (June 20).
On Asar 6, energy entrepreneurs submitted a memorandum to Prime Minister KP Sharma Oli. On Asar 7(June 19), they also sent SMS messages to PM Oli, Deputy PM and Finance Minister Bishnu Poudel, Energy Minister Deepak Khadka, and NEA Managing Director Hitendra Dev Shakya demanding the withdrawal of the Take and Pay provision.
On Asar 8 (June 22), all energy entrepreneurs posted messages on social media using black banners, calling for the cancellation of the Take and Pay model.
Although Energy Minister Deepak Khadka has taken a firm stand that the provision must be amended—and reports have emerged of an agreement among key leaders, including Nepali Congress President Sher Bahadur Deuba and PM Oli, to revise the clause—IPPAN has continued its scheduled civil protest by sending cautionary SMS messages to the chief whips of political parties.
For more:- Energy Entrepreneurs Take Pay Warning