Foreign Investment in Hydropower Sector in Nepal

7 April 2019

The approval of foreign investment in Nepal is governed  by Foreign Investment and Technology Transfer Act 2019 (2075) (“FITTA’’),      (b) Foreign Exchange (Regulation) Act 1962 (2019) (“FERA’’), and (c) Public Private Partnership and Investment Act, 2019( 2075).

1. What is the percent of Investment that foreign investment is allowed in hydropower sector?

Foreign investor can invest 100% of investment in hydropower sector in Nepal.

2. What are the steps for the Approval of foreign Investment in hydropower sector ?

Please Note:

DOI is the authority approving the foreign investment in Nepal, however, approval of Investment Board of Nepal (“IBN”) is required for hydropower projects having capacity of more than 200 MW or project having the investment amount more than 6 billion.

3. Is it compulsion to issue shares to local people ?

Although foreign investors can invest up to 100% in the energy projects, considering need for local participation in the investment, many projects have started to issue shares to the local community and other general public. There is no any compulsion to issues shares to local people.

4. What are the fiscal incentives provided to hydropower project developer ?

5. Related Articles

For the article related to “Hydropower Project Development in Nepal” please go through the link mentioned below:

Link here: Hydropower Project Development in Nepal


Disclaimer: This article is for informational purposes only and shall not be construed as legal advice, advertisement, personal communication, solicitation or inducement of any sort from the firm or any of its members. The firm shall not be liable for consequences arising out of any action undertaken by any person relying on the information provided herein.

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