Supreme Court’s Order Creates Uncertainty for Hydropower Projects

The Supreme Court’s decision to prohibit infrastructure development within protected areas and national parks has impacted 267 hydropower projects with a combined capacity of 19,736 MW. These projects, which have already secured permits and invested billions, now face uncertainty. Additionally, the lack of approval from the Ministry of Forests has stalled another 25,000 MW of potential projects.

According to IPPAN, the order has put a total of 40,000 MW of hydropower capacity in limbo, risking an annual loss of Rs. 420 billion in royalties and revenue. Major projects such as Upper Tamakoshi, Khare, and Chilime have already been affected. IPPAN has called for a reconsideration of the decision and emphasized the need for immediate dialogue between the government and stakeholders. It stated that resolving the challenges is crucial to ensuring the progress of Nepal’s hydropower sector.