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IPPAN Seeks Government Protection as Hydropower Projects Face Growing Threats

IPPAN Seeks Government Protection as Hydropower Projects Face Growing Threats

Sunday, September 28 2025

Kathmandu, The Independent Power Producers’ Association, Nepal (IPPAN) has formally appealed to the Minister of Home Affairs and the Minister of Energy for immediate government intervention, citing rising security threats to hydropower projects across the country.

In letters sent on Sunday, IPPAN President Ganesh Karki expressed concern over increasing cases of obstruction and illegal demands from local groups, including the demand for 10% free shares in contradiction to existing laws and government policy. These incidents have reportedly affected both operational and under-construction projects.

IPPAN highlighted the ongoing crisis at the 45 MW Upper Bhotekoshi Hydropower Project in Sindhupalchok, where the plant has remained closed for the past 17 days. The Bhotekoshi Rural Municipality and a group called JEN-G have reportedly demanded free shares, leading to project shutdowns and financial losses exceeding NPR 160 million, or nearly NPR 9.8 million per day.

The association stated that even routine maintenance and inspections are being obstructed, further escalating the risks to infrastructure and investment. Similar pressure tactics have been observed in other parts of Sindhupalchok, particularly in Jugal Rural Municipality, where 10 different hydropower projects have received letters demanding free shares in the name of locals.

IPPAN warns that such actions not only delay project timelines and inflate costs, but also severely discourage private sector involvement in Nepal's energy sector. The association is urging the government to ensure law and order in affected regions and to establish a dedicated Energy Security Policy to safeguard both domestic and foreign investment in the long term.