5. Policy

The following policy will be adopted for the implementation of the above-mentioned topics:

5.1 The country's hydropower capacity will be utilized to the maximum to meet the domestic needs of electricity. 5.2 Hydropower projects that are suitable for domestic use in the electricity system as well as reservoir projects will also be developed competitively as needed. 5.3 Implementation of hydropower projects will be encouraged based on the principle of construction, operation, ownership and transfer. 5.4 In order to attract domestic and foreign investment in the development of hydropower, a transparent process will be adopted as well as proper incentives. Efforts will continue for the implementation of 5.5 large reservoir hydropower projects and multi-purpose projects. It will be developed in such a way that the nation will get the maximum benefit from the low coastal benefits created by the multi-purpose projects with large reservoirs. 5.6 In the case of multi-purpose projects, the government of Nepal can participate with the private sector in view of the possibility of irrigation development. 5.7 Hydropower will be developed as an alternative to biological and thermal energy and contribute to environmental protection. 5.8 Arrangements will be made for the proper rehabilitation of the displaced families in addition to minimizing the adverse environmental impact that may occur from the operation of hydropower projects. 5.9 Emphasis will be placed on mobilizing the internal capital market to invest in the power sector. 5.10 Small and micro hydropower projects will be conducted at the local level and electrification of remote rural areas will be encouraged. 5.11 Rural electrification will be expanded to provide electricity service to more people. A rural electrification fund will also be established in addition to mobilization of public participation in this work. 5.12 Unauthorized leakage of electricity will be controlled. For this, along with the necessary technical measures, appropriate legal arrangements will also be made to mobilize public assistance. 5.13 Promoting the use of electricity available during minimum demand in the areas of rural water supply, irrigation, industry, tourism etc.will be affected. 5.14 Arrangements will be made to provide appropriate benefits even at the local level during the operation of hydropower projects. 5.15 Appropriate arrangements will be made to manage the risks that may occur in the hydropower project. 5.16 Taking the concept of bilateral and regional cooperation in view of the abundance of hydropower production capacity in the country 5.17 To expand reliable and quality electricity service at a reasonable price to the dominions in the production, transmission and distribution of hydropower by encouraging the involvement of community/cooperative organizations, local bodies and the private sector in a competitive manner. To create an environment, existing institutions in the public sector will be restructured. 5.18 Attention will be paid to protecting the interests of consumers by providing quality and reliable electricity services to consumers in an accessible manner. 5.19 The electricity pricing process will be made reasonable and transparent so that electricity is supplied at a reasonable price. 5.20 Priority will be given to use Nepalese labor and skills in the implementation of hydropower projects. 5.21 An organization will be developed to prepare skilled manpower for hydropower development and arrange training within the country to enhance the capacity of individuals in that field. That organization will also be able to conduct studies and research related to hydropower development. 5.22 Consumers will be encouraged to manage demand to promote energy conservation.