'Take and Pay' Provision to Stay, Says Finance Minister Paudel

Finance Minister Bishnu Prasad Paudel has confirmed that the government will not revise the controversial 'take and pay' provision included in the newly announced budget, despite criticisms from various stakeholders.

Addressing the House of Representatives on Monday, Paudel clarified that the policy aims to open electricity trade to the private sector, ending the current monopoly of the Nepal Electricity Authority (NEA). “A bill allowing private sector involvement in power generation and trade is under parliamentary discussion. Once passed, it will enable broader market participation,” he stated.

As per the provision, NEA will purchase electricity from the private sector based on actual demand and supply, while any surplus power can be sold independently. Paudel defended the move, stating it brings flexibility to power purchase agreements (PPAs) and ensures a balanced energy market.

His remarks follow Energy Minister Deepak Khadka’s statement a day earlier, where he described the inclusion of the 'take and pay' provision in the budget as a mistake and suggested it would be rectified.