20th June 2025, Kathmandu
After the Finance Minister showed no positive response regarding the removal of the Take-and-Pay (T&P) PPA provision, IPPAN (Independent Power Producers’ Association, Nepal) has announced a series of protest programs.
IPPAN Protests Take Pay Policy
With Nepal’s electricity generation capacity reaching 3,600 MW—over 80% of which is contributed by the private sector—the new Take-and-Pay provision in power purchase agreements discourages banks from investing.
As a result, over NPR 66 billion already invested in more than 350 projects with a combined capacity of 17,000 MW under study by the private sector is at risk of being lost. Consequently, IPPAN has made public its protest programs.
In a press release issued by IPPAN, it is stated:
“At a time when the private sector is investing aggressively in the energy sector, the Government of Nepal’s announcement in the budget and policy for the upcoming fiscal year 2082/083 (2025/26), presented on Jestha 15, 2082 (May 29, 2025), that ‘Run-of-the-river projects will be signed on a Take-and-Pay basis,’ has blocked the way for the construction of over 350 projects with a total capacity of 17,117 MW. Additionally, it threatens to drown the NPR 66.22 billion already invested by the private sector. IPPAN made repeated requests to correct this policy by meeting with the Prime Minister, former Prime Ministers, Minister of Energy, Finance Minister, Chief Secretary, and other officials. However, as no concerned authority has shown seriousness in fulfilling the demands, IPPAN has announced the first phase of protest programs.”
The announced protest programs are as follows:
According to IPPAN,
On Ashadh 6 (June 20), they will again submit memorandums to the Prime Minister, Energy Minister, and Finance Minister.
On Ashadh 7 (June 21), they will send SMS messages to the Prime Minister, Finance Minister, Energy Minister, and the Executive Director of the Nepal Electricity Authority requesting the withdrawal of the Take-and-Pay provision.
On Ashadh 8 (June 22), they will post messages on social media urging the government to revoke the Take-and-Pay PPA policy.
On Ashadh 9 (June 23), they will discuss the impacts of Take-and-Pay with various private sector associations and publish a joint statement.
On Ashadh 10 (June 24), they will collectively send SMS messages to the Speaker of the House of Representatives and the Chief Whip urging them to withdraw the Take-and-Pay provision.
Acting President of IPPAN, Mr. Mohan Kumar Dangi, further stated that if the Take-and-Pay PPA provision is not removed by the time the budget and policies are passed by the House of Representatives, they will proceed to stronger second and third phase protests, including handing over the project keys to the government.
For more:- IPPAN Protests Take Pay Policy