Monday, July 15, 2013

Hydropower gets the utmost priority.

Govt allocates Rs 30 billion for the sector; Special focus on state-funded hydel projects It is the infrastructure sector that has got the topmost priority in the new budget. Breaking away from tradition, the government has earmarked huge money for infrastructure development with special focus on the energy sector.

The budget, which aims “massive reforms in generation of hydropower, construction of transmission lines and distribution system”, has earmarked a whopping Rs 30 billion for the energy sector.
Presenting the budget on Sunday, Finance Minister Shanker Prasad Koirala said Rs 1.5 billion has been earmarked for the construction of 140-MW Tanahun Hydropower Project. “The government will begin the construction of the country’s second reservoir-type project from the next fiscal year,” said Koirala.
The budget has given special focus on the implementation of government-funded hydropower projects that are currently under construction. The government has set aside Rs 4.66 billion for five government-funded projects — 60-MW Upper Trishuli 3A, 42-MW Upper Modi, 32-MW Rahughat, 30-MW Nalsingadh and 14-MW Kulekhani III.

Finance Minister Koirala said the government has also allotted adequate funds for initiating the construction of 87-MW Tamakoshi V and 20-MW Budhiganga Hydropower Projects.
Giving much-needed relief to independent power producers (IPPs), the budget has promised to speed-up the construction of transmission lines. One of the major concerns of IPPs has been the slow progress in transmission line construction. “Construction of transmission lines will be initiated as a campaign,” reads the budget.
Allocating Rs 13.50 billion, the budget talks of constructing cross-border transmission lines, north-south corridor lines and east-west power lines. Likewise, Rs 1.58 billion has been earmarked to continue construction work on 400-KV Dhalkebar-Mujjaffapur Transmission Line and Kataiya-Kusaha Transmission Line.
IPPs hailed the budget, saying that the government has shown seriousness towards the energy sector. Subarna Das Shrestha, president of Independent Power Producers Association of Nepal (IPPAN), said the best part “is the promise to allocate more resources for the development of transmission lines”. The allocation of more than Rs 30 billion for the energy sector “itself proves government’s seriousness towards the promotion of the energy sector”, he said.
In a bid to promote the alternative energy, the budget has promised Rs 1.11 billion for the Solar Energy Programme.
“This will help generate up to 4,000-KW energy, which can be installed to more than 125,000 low-income households,” said Koirala.
The budget has also envisioned expanding the solar energy promotion programme in urban areas. “Encouraging the people to use solar energy for domestic purpose, the government will also offer assistance in the installation of solar energy,” the budget said.
The budget also continued resource allocation for road and other infrastructure like drinking water. It has allocated Rs 1.81 billion for the road widening in the Kathmandu valley, which will be completed by the next fiscal year.
And, more than Rs 9 billion has been allocated for two major drinking water projects — Melamchi and Rural Drinking Water Project. With new contractors selected for Melamchi, the government plans to spend Rs 5.40 billion for the project.
The government has planned to start construction of the East West Railway from next fiscal year, for which it has allocated Rs 1.40 billion.  Two major infrastructure projects — Kathmandu-Tarai Fast Track and Second International Airport at Nijgadh, Bara — will be developed under public-private partnership model.

Major Infrastructure Projects
Projects    Allocation
Mid Hill Highway    Rs 1.90 billion
East-West Railway    Rs 1.40 billion
Melamchi    Rs 5.40 billion
Sikta Irrigation    Rs 1.24 billion
Babai Irrigation    Rs 450 million
KTM road expansion    Rs 1.81 billion
Rural Drinking Water    Rs 3.99 billion

Energy Sector    Rs 30 billion
Transmission lines    Rs 13 billion
Renewable energy    Rs 1.11 billion

Src: Kathmandu post

No comments:

Post a Comment