The research aims to explore the current scenario of electricity in Nepal, the need and scope of FDI in hydropower. Nepal is a country which has hugely commercially feasible hydropower potential to generate electricity. Demand of electricity is sufficiently high however due to lack of economical resource the demand has not been able to fulfil in this sector thus have created a huge gap in demand and supply. This huge gap in demand and supply has created huge opportunities of FDI in hydropower in Nepal. Government of Nepal has set out some of the guidelines, principles or practices for hydropower development in Nepal. Although Government of Nepal has is taken optimistic goals and steps for harnessing Nepal’s hydropower potential, the variance between laws and implementation creates barriers to invite investors and also causes costly delay in the ongoing projects. Favoritism, red tape, slow governance, heavy bureaucratic discretion, irregularities, infrastructure and facilities are also some of the barriers in attracting FDI in hydropower in Nepal

1. “Necessity and Scope of FDI in Hydropower Sector
in Nepal.”
Prepared by:
Mrinal Gaurav
2014

2. FDI in Hydropower
Presentation Outline
Introduction
Research Objectives
Methods of Research
Data Collection
Data Analysis
Conclusion

3. FDI in Hydropower
Introduction

4. FDI in Hydropower
Hydropower is one of the areas in Nepal which has an immense
potential to attract FDI .
Despite having among the highest commercially feasible hydropower
potential, Nepal has harnessed only about 1 percent of its potential
hydropower energy.
As per the World Bank (2013) the government has only able to provide
electricity to 43.6% of population until 2009.
There is a huge demand supply gap . Thus wide scope and necessity of FDI

5. FDI in Hydropower
Objectives

6. FDI in Hydropower
To explore the current scenario of electricity in Nepal
To find out the need and scope of FDI in hydropower

7. FDI in Hydropower
Methods of Research

8. FDI in Hydropower
A qualitative, semi structured interview was used.
Questions for the interview was proposed on the
background of research objectives.

9. FDI in Hydropower
Data Collection

10. FDI in Hydropower
A total of six interviews were conducted through skype and
telephone.
Three personnel were from Nepal Electricity Authority and three
were top executives from hydropower companies in Nepal

11. FDI in Hydropower
Data Analysis

12. FDI in Hydropower
All of interviewees agreed that there is a need FDI in hydropower in Nepal .
Nepal is a country which has hugely commercially feasible hydropower
potential to generate electricity.
Demand of electricity is sufficiently high however due to lack of economical
resource the demand has not been able to fulfill in this sector thus have
created a huge gap in demand and supply.
This huge gap in demand and supply has created huge opportunities of FDI in
hydropower in Nepal

13. FDI in Hydropower
Conclusion

14. FDI in Hydropower
Government of Nepal has is taken optimistic goals and steps
for harnessing Nepal’s hydropower potential.
The variance between laws and implementation creates
barriers to invite investors and also causes costly delay in
the ongoing projects.
Favoritism, red tape, slow governance, heavy bureaucratic
discretion, irregularities, infrastructure and facilities are also
some of the barriers in attracting FDI in hydropower in Nepal.

15. FDI in Hydropower
Thank You!!!