The Independent Power Producers’ Association, Nepal (IPPAN) has expressed dissatisfaction with a recent Supreme Court decision.
At a press conference on Sunday, IPPAN voiced concerns over the Supreme Court’s annulment of amendments to Sections 5 and 6 of the National Parks and Wildlife Conservation Act, 2029 (1973). According to IPPAN, the ruling has impacted hydropower projects with a combined capacity of 19,736 MW across 267 initiatives.
“We are deeply concerned by the majority decision issued on 2nd Magh 2081 by the Constitutional Bench. The decision annulled laws duly enacted by the sovereign parliament, undermining hydropower development efforts that have been underway for the past 15 years. This ruling has pushed the operations of these projects into greater complexities,” stated IPPAN.
The organization highlighted that this decision affects projects that have already obtained permits for electricity production and surveys as per existing laws, paying fees, royalties, and taxes. IPPAN pointed out that 267 hydropower projects, with a cumulative capacity of 19,736 MW and substantial investments, will face additional challenges.
Furthermore, dozens of projects with a combined capacity of nearly 25,000 MW, stalled due to lack of approval from the Ministry of Forests, now face an uncertain future. The ruling impacts approximately 6 million ordinary citizens and private investors involved in these projects, leading to widespread uncertainty, according to IPPAN.
IPPAN emphasized that more than 19,000 MW worth of projects are affected by this Supreme Court decision. Given that 23.39% of Nepal’s total land area falls under protected zones, the decision severely hampers development activities in these areas.
“In a country with a total area of 147,181 square kilometers, the protected zones encompass 34,425 square kilometers. It is virtually impossible to pursue any developmental activities without interacting with these areas,” IPPAN stated.
