Finance Minister said – We have withdrawn the ‘take and pay’ provision of the budget, what will happen now in point number 227? It is still uncertain.

Finance Minister Bishnu Poudel has said that the ‘take and pay’ provision included in the budget has been withdrawn.

Addressing the parliament on Tuesday, he said that electricity will be purchased and sold based on financial risk assessment. Finance Minister Poudel said, "Government investment alone is not enough in energy development. We want to make the role of the private sector effective."

According to him, after the amendment, item 227 of the budget will mention that 'power purchase agreements may be concluded for projects that have been identified to consume and export energy based on financial risk assessment and have assurance that the Nepal Electricity Authority can pay its obligations.'

The recently introduced budget item states that 'substations and transmission lines will be constructed in line with the completion schedule of the hydropower project.'

A policy will be adopted to enter into power purchase agreements in a way that maintains a balance between power production and consumption. Power purchase agreements will be entered into in accordance with the take and pay concept of the Run of River Project, it is stated.

The intention of point number 227 is to ensure that the generated electricity is not wasted, that high-yield projects are taken forward, and that electricity supply is made easy even during winter, as Finance Minister Poudel has clearly stated.