Banking News – Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has announced that the Government of Nepal will invest around Rs. 80 billion in electricity infrastructure during the fiscal year 2083/84, with a target of completing 12 strategically important transmission lines within the year.

Speaking at an interaction program on “Challenges and Upgrading of Power Infrastructure” organized by the Nepal Economic Journalists Association (NAFIJ), Minister Shrestha said that strengthening the country’s electricity transmission and distribution system has become the government’s top priority alongside increasing power generation.

He acknowledged that despite Nepal’s adequate electricity production, aging and low-capacity infrastructure has led to recent power outages and frequent tripping, making infrastructure modernization an urgent necessity.

The minister said the Ministry of Energy, Water Resources and Irrigation has allocated approximately Rs. 80 billion in the upcoming budget for electricity infrastructure, while the Nepal Electricity Authority (NEA) will also invest a significant portion of its internal resources in upgrading and expanding the power network.

According to Minister Shrestha, the government aims to complete 12 major transmission line projects during the next fiscal year. By the end of the current fiscal year, the total length of 66 kV and above transmission lines is expected to reach around 7,048 circuit kilometers, with an additional 800 circuit kilometers planned for expansion next year.

He also noted that the government has already begun implementing the Energy Consumption and Export Strategy 2083, targeting an increase in per capita electricity consumption from the current approximately 460 kilowatt-hours (kWh) to 1,500 kWh within the next decade. The strategy focuses on expanding electricity use across industry, transportation, agriculture, and households, while exporting surplus electricity generated during the monsoon season to regional markets.

Highlighting recent progress in regional energy cooperation, Minister Shrestha said the Nepal–India Energy Secretary-level meeting held in Pokhara marked a significant milestone toward Nepal’s long-term goal of exporting 10,000 megawatts of electricity to India. The meeting also reached key agreements on cross-border electricity trade and transmission infrastructure development.

The minister further stated that the government is preparing legal provisions to liberalize electricity trading, allowing the private sector to participate in both domestic and international power markets. Plans are also underway to permit private investment in transmission line construction, enabling electricity trading through a wheeling charge mechanism.

Concluding his remarks, Minister Shrestha emphasized that the transformation of Nepal’s energy sector requires close collaboration among the government, private sector, banks, media, and other stakeholders, expressing confidence that Nepal’s abundant river resources can become the foundation for industrial growth, employment generation, and sustainable economic prosperity.