KATHMANDU: The Independent Power Producers’ Association, Nepal (IPPAN) has formally withdrawn its protest movement following the government’s decision to scrap the controversial ‘Take and Pay’ Power Purchase Agreement (PPA) provision included in the budget for the upcoming fiscal year 2025/26.
The announcement was made during a press conference on Thursday, days after Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel declared in the House of Representatives on June 24 that the provision had been removed.
The original clause, introduced in the national budget on May 29, proposed that all Run-of-the-River hydropower projects would operate under a ‘Take and Pay’ model—where the government would only pay for electricity it consumes rather than all that is produced.
IPPAN had strongly objected to the policy, warning that it would put 17,117 megawatts worth of hydropower projects at risk, many of which are at various stages of development.
IPPAN also claimed that the policy could jeopardize over Rs 109 billion already invested by the private sector in Nepal’s hydropower sector.
In response to the provision, IPPAN had launched a nationwide campaign, which included meetings with top political leaders, ministers, and MPs; submission of memorandums; and a social media campaign under the slogan #NoTakeAndPay.
The organization said it mobilized public pressure through SMS messages, online posts, and direct discussions, ultimately achieving success through what it described as a “peaceful first phase of protest.”
Welcoming the government’s reversal, IPPAN President Ganesh Karki expressed appreciation for the decision and affirmed that the private sector remains committed to supporting the government’s goals for energy development and investment.
General Secretary Balram Khatri and movement coordinator Mohan Kumar Dangi also extended thanks to journalists, political parties, lawmakers, civil society, the business community, and IPPAN members for their support throughout the campaign.
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