The Integrated Nepal Power System (INPS) is primarily managed by the Nepal Electricity Authority (NEA). At present, the NEA has a total installed electricity generation capacity of about 689 MW. Out of this, the hydropower capacity stands at 632 MW.

      Nevertheless, the peak power and energy demand is growing 11% annually. This has created huge electricity shortages in Nepal. To meet the significant difference between the demand and the supply, the NEA increased power cuts in the country for upto 18 hours a day in January 2009.

     In my view, medium and small sized hydropower projects  could be more feasible in context of Nepal rather than  larger one. Being highly cost effective than large projects, medium sized projects possesses an in-country capacity of generating upto 50 MW. Moreover, the share of power supply from the community or private sector owned systems stands at 17% of the total. Hydropower schemes of upto 1 MW do not require any license for development. Neither do they need to pay any income tax on the revenue thus generated. In recent years, such micro hydro projects have helped meet the community's minimal electricity need.

    In current senario, large scale hydropower projects are feasible in Nepal only when India is prepared to buy the power thus generated at commercial rates and to share the benefits accrued by the way of downstream benefits.

    Having a economically feasible potential of 45,610 MW, why are we lagging behind in the production?