Kathmandu, Feb. 18 -- A provision in the electricity bill allowing the government to grant a licence without competition to any joint venture entity between Nepal and foreign government entities to develop hydropower projects over 100MW has invited the ire of Nepal's private sector.

They are of the view that the provision not only deprives the domestic private sector of an opportunity to develop medium-sized projects but could increase the entry of the Indian state-owned companies at the expense of the domestic private sector.

"Nepali developers are themselves capable of developing projects upto 500MW," said Ganesh Karki, president of the Independent Power Producers' Association of Nepal (IPPAN). "Why grant a licence without competition...