The government aims to increase Nepal’s total installed electricity capacity to 4,800 MW by the end of the next fiscal year, 2025/26.

Presenting the national budget on Thursday, May 29, Finance Minister Bishnu Paudel said an additional 942 megawatts will be generated from hydropower projects slated for completion in the upcoming fiscal year. He also announced that 732 kilometers of double-circuit transmission lines will be added to strengthen the national grid.

However, earlier in the day, while unveiling the Economic Survey 2025/26, Paudel had noted that Nepal’s current installed power capacity stands at 3,602 megawatts. 

In addition to the energy sector focus, the government has allocated Rs 2.60 billion for the completion of two key infrastructure projects—the Nagdhunga and Siddhababa tunnel roads—in the upcoming fiscal year.

Click   here   to see out budget 2025/26 coverage.