6.3.1 Hydropower shall be developed attracting the investment of domestic and foreign investors in the hydropower generation, transmission and distribution projects through sole or Joint Venture Company and shall also be developed through Joint Venture Company of the private sector and the public sector. In general, foreign investors shall be encouraged, with priority, to make joint investment with Nepalese investors.
6.3.2 Capital market shall be mobilized to encourage domestic investment in hydropower generation. Financial institutions, bonds as well as other financial instruments as required for such purpose shall be developed.
6.3.3 The Infrastructure Financial Institution to be established under the Build, Operate and Transfer of Public Infrastructure Policy, 2000 shall also be utilized for the hydropower generation and distribution projects.
6.3.4 The agreement made to receive loan from foreign institutions for the investment in the projects related to generation, transmission and distribution of hydroelectricity shall require approval of Government of Nepal in accordance with prevailing laws. Approval required to be obtained in borrowing loans by a licensee of the project related to generation, transmission and distribution of hydroelectricity from such foreign lender against security of the shares and immovable assets and other matters pertaining thereto shall be as determined by law.
6.3.5 In cases where irrigation benefits may also be availed from any storage project, Government of Nepal may be a joint venture partner with the private sector in such a project.