Indian business houses have expressed their readiness to invest in Nepal’s hydropower sector, provided that investment security and returns are assured. Speaking at the Nepal-India Energy Summit held in New Delhi, Indian investors emphasized the need for policy guarantees and government facilitation to resolve challenges faced by hydropower projects, such as land acquisition, forest clearance, customs procedures, and road access.

The summit, jointly organized by the Embassy of Nepal in India, the Indian Green Energy Federation, and the Independent Power Producers’ Association of Nepal (IPPAN), provided a platform for Indian investors to highlight key concerns. They stressed the importance of ensuring returns on investment and the ease of withdrawing funds to attract long-term commitments.

Sushil Sharma, Project Director of Satluj Hydropower Corporation (SJVN), which is constructing the 900 MW Arun III Hydropower Project in Nepal, noted that government support has helped resolve many of these issues. He stated that SJVN is also building a 217-kilometer transmission line and that, with continued government assistance, the Arun III project has reached 84% completion within three years. Sharma added that the project, with an investment of INR 340 billion, will be handed over to Nepal after 25 years, significantly contributing to the country’s economy and encouraging further Indian investment.

Adani Group Vice President Jayaraman Punidhan said the company is actively seeking promising hydropower projects in Nepal. He mentioned that Adani Group has already signed agreements for generating 27,300 MW of electricity globally and that the company prioritizes investments in neighboring countries and regional energy markets.

Additional Secretary at the Indian Ministry of Energy, Akash Tripathi, assured that Nepal’s electricity export to India will not face structural constraints. He highlighted that infrastructure enabling the exchange of 1,000 MW of electricity is already in place, while four transmission lines with a combined capacity of 8,000 MW are under construction.

Naresh Goyal, Executive Director of Uttar Bharat Hydropower Company, emphasized that Indian investors are willing to invest in Nepal if the government removes administrative hurdles and ensures a conducive investment climate.

Nepali Ambassador to India Dr. Shankar Sharma stated that the summit was part of Nepal’s effort to meet its target of generating 28,500 MW of electricity by 2035. He informed that Indian investors can either acquire ownership of projects in Nepal or collaborate through joint ventures. -- RSS