IPPAN Withdraws Protest After Government Drops 'Take and Pay' Provision

The Independent Power Producers’ Association, Nepal (IPPAN) has ended its protest after the government decided to remove the controversial 'Take and Pay' provision from the upcoming fiscal year 2025/26 budget.

This announcement was made at a press conference on Thursday, just a few days after Finance Minister Bishnu Prasad Paudel told Parliament that the provision had been officially scrapped.

Initially introduced in the May 29 budget, the policy would have applied to Run-of-the-River hydropower projects. Under this model, the government would only pay for the electricity it uses, not for the total amount generated. IPPAN strongly opposed this idea, saying it could threaten over 17,000 megawatts of planned hydropower projects and put more than Rs 109 billion in private investment at risk.

In response, IPPAN launched a peaceful nationwide campaign. It held talks with political leaders, ministers, and MPs, submitted formal letters, and ran an online campaign using the hashtag #NoTakeAndPay. They also mobilized public support through SMS messages and social media.

Following the government’s decision to withdraw the policy, IPPAN President Ganesh Karki welcomed the move, saying the private sector is committed to helping Nepal achieve its energy goals. 

Other IPPAN leaders also thanked everyone who supported their campaign, including journalists, political leaders, civil society members, and the business community.