Invest 10% of $2.5 Billion in Remittances in Hydropower, No Need for FDI: Rajendra Mall

Kathmandu. Rajendra Mall, the former president of the Nepal Chamber of Commerce, has emphasized the need to strengthen the country’s hydropower infrastructure for sustainable development.

Speaking at a program titled ‘Challenges and Way Forward in Hydropower Infrastructure Development’ organized by the Nepal Economic Journalists’ Association (NEJA), Mall stressed that Nepal’s hydropower potential should be utilized through a solid policy framework.

Mall suggested that the concept of ‘Nepal’s water, people’s investment’ should be implemented through public-private partnership (PPP) models. He also emphasized the need to address the ‘jhola khola’ (irregularities in hydropower projects) and promote genuine investors.

Mall pointed out that the country’s hydropower potential is approximately 83,000 megawatts, and the government should prioritize the development of this sector. He also suggested that the government should adopt a ‘one-door service’ and ‘fast-track’ policy to facilitate the development of hydropower projects.

Regarding investment sources, Mall proposed that 10% of the annual remittances of around Rs 250 billion should be invested in hydropower and infrastructure development. He argued that this would reduce the country’s dependence on foreign aid and FDI.

Mall also emphasized the need to address the issue of transmission lines, which has hindered the development of hydropower projects. He suggested that the government should prioritize the development of transmission lines and involve the private sector in this process.

Furthermore, Mall stressed the need to simplify the investment process for non-resident Nepalis (NRNs) and make it easier for them to invest in hydropower projects. He also suggested that the government should provide incentives for NRNs to invest in this sector.

In addition, Mall criticized the government’s decision to provide 20 units of free electricity and suggested that instead, the government should provide electricity at a subsidized rate to low-income households and charge a fair price to other consumers.

He also emphasized the need to reduce production costs rather than increasing the burden on consumers. Mall urged the government to prioritize the development of hydropower infrastructure and make it a national priority.