The Government of Nepal has introduced a comprehensive 20-page ministerial directive to accelerate reforms across the electricity, hydropower, water resources and irrigation sectors. Issued by the Ministry of Energy, Water Resources and Irrigation on Baisakh 3, 2083 BS (April 16, 2026), the directive assigns specific responsibilities and implementation deadlines to agencies including the Nepal Electricity Authority (NEA), Electricity Regulatory Commission (ERC), Department of Electricity Development (DoED), Water and Energy Commission Secretariat (WECS) and Department of Water Resources and Irrigation (DoWRI). Major measures include introducing a transparent electricity wheeling charge methodology within 30 days, developing differentiated electricity tariffs for storage and pumped-storage hydropower, reviewing outstanding Power Purchase Agreement (PPA) disputes within three days and classifying existing PPAs as operational, delayed or at risk. The directive also requires a comprehensive audit of hydropower survey and construction licences, a publicly accessible licence performance dashboard within 60 days and verification of adequate transmission capacity before additional construction licences are issued.

The government has also directed agencies to strengthen electricity trading, consumer services and renewable energy development. NEA and concerned institutions have been instructed to operationalize Nepal Power Trading Company Limited, prepare national electricity consumption and export roadmaps, and assess barriers to increasing domestic electricity demand. The ministry has ordered the introduction of a 24-hour AI-powered chatbot called “AI Sathi” within 30 days to respond to electricity consumers’ questions and outage complaints. Other measures include establishing a Carbon Revenue Unit within 10 days, preparing a green hydrogen pilot project within 90 days, reviewing electricity tariff-setting procedures and introducing stronger monitoring of hydropower construction quality. The directive also proposes extending the licensing period for reservoir-based hydropower projects to 50 years, reviewing hydrological penalties linked to climate change and strengthening electricity distribution infrastructure through improved procurement and equipment management.

Water resource management and climate resilience form another major component of the directive. The government has instructed concerned agencies to advance river basin master plans, establish a Transboundary Water Resources Unit and improve access to certified hydrological and meteorological data. The Department of Hydrology and Meteorology has been tasked with establishing a system to provide certified data within seven working days of a request and developing standardized climate projections through 2050. The directive also calls for a national groundwater monitoring and management plan, including a digital monitoring network covering more than 200 deep tube wells in the Terai within 180 days. Additional provisions include groundwater recharge programmes, protection of water sources in Kathmandu Valley and mountainous areas, river basin accounting and preparation of a national flood management master plan.

The directive places significant emphasis on accelerating nationally important irrigation projects and improving their long-term sustainability. The Department of Water Resources and Irrigation has been instructed to prepare implementation schedules for the Babai, Bheri-Babai Diversion and Sikta irrigation projects, with a target of completing the Babai and Bheri-Babai projects within the following two years. The ministry has also directed diplomatic coordination with India regarding water supply arrangements under the Mahakali Treaty, advancement of the Sunkoshi-Marin Diversion Project’s re-procurement process within 120 days, and development of operational frameworks for multipurpose irrigation schemes. Further measures include introducing irrigation service fee guidelines, integrating irrigation infrastructure with agricultural and industrial productivity, and preparing a drought resilience strategy for the Terai-Madhesh region within 90 days. The document establishes administrative responsibilities and deadlines but does not confirm that the proposed reforms, technologies or infrastructure projects have already been completed.