Currently, several small hydro projects that can generate up to 70 MW of electricity are on the verge of making contribution to the national grid. But they have not been able to complete their projects due to lack of access to finance.[break]
“Earlier, these project operators had recommended the government arrange financing facilities and provide VAT rebates,” Rajan Khanal, spokesperson of the Ministry of Finance, told Republica.
But since the state cannot get directly involved in providing financial support to the private sector and policy level decisions, such as extending VAT rebates, cannot be implemented by a caretaker government, it was recommended that the task force be given the responsibility to find ways to address the problems faced by project operators.
The task force, which comprises joint secretaries of finance and energy ministries and director of Power Trade Department under Nepal Electricity Authority, has been directed to submit a report as soon as possible.
“We hope addition of the power generated by these projects will somewhat ease the power shortage faced by the country,” Khanal said.
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