Investment Shortage and IPO Policy Hindering Private Power Projects: IPPAN President Karki

Ganesh Karki, President of the Independent Power Producers’ Association of Nepal (IPPAN), has expressed concern that many private-sector energy projects are unlikely to be completed on time due to a lack of capital. Speaking at a post-budget discussion program organized by the Nepal Economic Journalists Association on Saturday, Karki emphasized that the government must address the capital shortage faced by the energy sector.

He criticized the current policy which allows companies to issue Initial Public Offerings (IPOs) only after power production begins, calling it a major obstacle. “There is growing doubt about whether the energy sector can move forward. Not being able to issue IPOs early has created a serious capital crunch,” Karki said. “An estimated Rs. 610 billion is required, but currently 365 projects are just holding licenses without progress.”

Karki further informed that 5,600 megawatts worth of licensed projects are pending, while run-of-the-river type projects with over 17,000 megawatts of potential are yet to move forward.

He warned that the government's policy of purchasing electricity only “when needed” may result in underutilization of produced electricity. He also pointed out that some recommendations made by the Khanal Commission are creating additional practical hurdles.

To ensure long-term growth in the energy sector, Karki stressed the need for the government to adopt clearer and more investment-friendly policies. IPPAN has consistently advocated for more flexible IPO regulations and easier access to financing for private power developers.