Government Approves Rs 20 Billion Energy Bonds for Four Hydropower Projects

The government has authorized the Nepal Electricity Authority (NEA) to issue energy bonds worth Rs 20 billion to mobilize investment for four major hydropower projects.

The Cabinet, in a meeting on Thursday, approved the issuance of bonds to fund the 1,063 MW Upper Arun, 100 MW Tamakoshi-5, 210 MW Chainpur Seti, and 42 MW Modi hydropower projects, NEA Executive Director Manoj Silwal told New Business Age. “The authority will issue the bonds in phases,” he said.

Silwal added that constructing these large-scale projects requires billions of rupees, and NEA had long planned to issue bonds for this purpose. “With the government’s approval now in place, the projects can move forward more smoothly,” he said.

The incumbnet Energy Minister Kulman Ghising had earlier sought government approval for bond issuance while he served as NEA’s Executive Director. After Ghising was replaced by Hitendra Dev Shakya in March 2025, Shakya also requested permission to issue Rs 20 billion in bonds to support NEA’s production, transmission, and distribution system improvements.

Other Cabinet Decisions

Land Problem Settlement Commission dissolved

The Cabinet decided to dissolve the Land Problem Settlement Commission and its district-level committees. The commission was formed to provide housing and land access to landless Dalits, squatters, and informal settlers. However, it faced criticism for being used as a center for political appointments, officials said. According to Ganesh Prasad Bhatt, spokesperson for the Ministry of Land Management, Cooperatives, and Poverty Alleviation, more than 316 appointed officials and over 1,100 technical staff had been working under the commission, which had an annual budget allocation exceeding Rs 850 million.

Ilam declared a crisis-hit district

The Cabinet declared Ilam a crisis-hit district for three months following recent floods and landslides. The National Disaster Risk Reduction and Management Authority (NDRRMA) reported that 39 people were killed, one went missing, and 26 were injured due to continuous rainfall since October 3. The disasters also caused severe damage to the district’s road network.

Implementation of civil aviation safety report

The Cabinet decided to implement a report on aviation safety prepared by a judicial committee formed during KP Sharma Oli’s tenure, led by Justice Anil Sinha and the current Minister for Industry. The government had previously kept the report confidential.

Police promotions

The Cabinet promoted Deputy Inspectors General Sushil Singh Rathore, Uma Prasad Chaturvedi, Himalaya Kumar Shrestha, and Dambar Bahadur Bishwokarma to the post of Additional Inspector General of Police.