India, Nov. 25 -- The government, which has set a target of generating around 28,500 megawatts of electricity, has not been able to move forward with new hydropower projects after halting the signing of Power Purchase Agreements (PPAs). According to the Independent Power Producers' Association, Nepal (IPPAN), PPAs for projects totaling about 13,000 MW-whose developers had already applied-have been put on hold.

Although the Nepal Electricity Authority (NEA) had begun the process of signing PPAs for around 5,000 MW, the introduction of the "take or pay" provision in the Fiscal Year (FY) 2025/26 budget halted further progress. The private sector has also been protesting this provision. IPPAN President Ganesh Karki said developers who have o...