--- title: "Current HDP objectives and amendments needed" subject: "Hydropower Engineering" chapter: 1 key: "semester_7/hydropower_engineering:hdp-current-objectives-amendments" source: https://www.bctengineer.com/q/semester_7/hydropower_engineering/hdp-current-objectives-amendments site: BCT Engineering --- # Current HDP objectives and amendments needed Hydropower Engineering · Chapter 1: Introduction - Asked in: 2076 Chaitra, 2+2 marks - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/hydropower_engineering/hdp-current-objectives-amendments - Whole chapter: https://www.bctengineer.com/md/semester_7/hydropower_engineering/chapter-1 ## Question State the objectives of the current Hydropower Development Policy of Nepal. Discuss the necessary amendments required to improve the existing scenario of the hydropower development sector. ## Short answer Current objectives: low-cost, reliable, affordable power; economic linkage; rural electrification; export; environmental protection. Amendments needed: promote storage and pumped storage, one-window clearance with time limits, federal role clarity, bankable PPA with dry/wet season pricing, timely transmission, clear export policy, local benefit sharing, and integration of climate and disaster risk. ## Answer The Hydropower Development Policy 2001 is still the base policy, and its objectives are given below. Newer documents (such as the Ministry of Energy's White Paper of 2018 and the energy sector development plans) repeat similar aims. #### Objectives - Generate low-cost, reliable electricity from water resources and supply it throughout Nepal at an affordable price. - Link electricity with industrial, agricultural and other economic activities. - Extend rural electrification. - Develop hydropower as an export commodity. - Protect the environment. #### Amendments needed - **Storage and pumped storage:** Include clear provisions and incentives, because Nepal needs dry-season energy and peaking power. - **One-window clearance:** Set fixed time limits for licences, IEE/EIA, forest and land approvals. - **Federal structure:** Define the roles of federal, provincial and local governments in licensing, royalty and revenue sharing. - **PPA and tariff:** Make a bankable, standard PPA with a fair tariff, separate dry- and wet-season energy prices, and deemed generation for grid delays. - **Transmission:** Require NEA or a transmission company to build lines on time, or let developers build them and recover the cost. - **Power trade:** Add a clear export policy, cross-border lines and market access. - **Local benefit sharing:** Shares for local people, royalty to the project area and resettlement rules. - **Climate, sediment and disaster risk** to be considered in planning and design. - **Financing:** Support for domestic financing, long-term loans and risk guarantees. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. Why should the policy include storage and pumped storage? A. To avoid PPA B. Nepal needs dry-season energy and peaking power C. To reduce licence fees D. For monsoon energy only Answer: B. Storage gives dry-season energy and peaking. (Key point: Storage amendment) 2. What does the answer suggest for PPA and tariff? A. Bankable standard PPA with fair tariff, dry-wet pricing and deemed generation B. No PPA C. Fixed tariff with no escalation D. Only wet-season purchase Answer: A. Deemed generation covers grid delays. (Key point: PPA reform) 3. What amendment relates to the federal structure? A. Remove royalty B. Define roles of federal, provincial and local governments for licences, royalty and revenue sharing C. Abolish local governments D. Give all licences to NEA Answer: B. Roles must be defined under federalism. (Key point: Federal structure) 4. What does the answer say about transmission? A. Require NEA or a transmission company to build lines in time, or let developers build and recover cost B. Only import lines C. Developers must never build lines D. Ignore transmission Answer: A. Lines should be ready with generation. (Key point: Transmission) ## Related in Hydropower Engineering - [Hydropower Development Policy 2001 (2058 BS)](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Ahdp-2001-objectives-features) — Hydropower Engineering, chapter 1, asked 4× - [Institutions in Nepal's hydropower sector](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Ainstitutional-setup-hydropower) — Hydropower Engineering, chapter 1, asked 2× - [HDP objectives, strategies and institutions](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Ahdp-objectives-strategies-institutions) — Hydropower Engineering, chapter 1 - [HDP 2001 features and private sector](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Ahdp-2001-private-sector) — Hydropower Engineering, chapter 1 - [Importance of hydropower development in Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Aimportance-hydropower-nepal) — Hydropower Engineering, chapter 1 - [Licensing provisions in hydropower policy](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Ahdp-licensing-provisions) — Hydropower Engineering, chapter 1, asked 2× ## Related in other subjects - [Nepalese electricity sector scenario](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Anepal-electricity-scenario) — Power Plant Design, chapter 1 - [Development of hydropower in Nepal](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Ahydro-development-nepal) — Power Plant Design, chapter 1 - [Role of NTA in Nepal's telecom sector](https://www.bctengineer.com/question.md?key=semester_8%2Ftelecommunications%3Arole-of-nta) — Telecommunications, chapter 7, asked 3× - [Energy sector and poverty in Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fenergy_environment_and_society%3Aenergy-development-poverty-nepal) — Energy Environment and Society, chapter 2