Hydropower Development Policy, 2001 (Nepal)

The Hydropower Development Policy of 2001 aims to develop hydropower to achieve the following objectives: 

1. To generate electricity at low cost by utilizing the water resources available in the country
2. To extend reliable and qualitative electric service throughout the Kingdom of Nepal at a reasonable price
3. To tie-up electrification with the economic activities
4. To render support to the development of rural economy by extending the rural electrification
5. To develop hydropower as an exportable commodity

It also provides the specific policies and strategies that shall be utilized and pursued in order to achieve the objectives. These include policies concerning:

• Maximizing hydropower potential, hydropower storage projects, build, operate, own and transfer projects
• Attracting investments on hydropower
• Possibility of government participation for irrigation
• Hydropower as alternative to biomass and thermal energy
• Resettlement of displaced families
• Mobilization of internal capital market for investment
• Rural electrification
• Export of electricity
• Reliable and qualitative electricity service
• Utilizing Nepal labor and skills
• Demand side management