---
title: "HDP objectives, strategies and institutions"
subject: "Hydropower Engineering"
chapter: 1
key: "semester_7/hydropower_engineering:hdp-objectives-strategies-institutions"
source: https://www.bctengineer.com/q/semester_7/hydropower_engineering/hdp-objectives-strategies-institutions
site: BCT Engineering
---

# HDP objectives, strategies and institutions

Hydropower Engineering · Chapter 1: Introduction

- Asked in: 2079 Baishakh, 3+1 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-objectives-strategies-institutions
- Whole chapter: https://www.bctengineer.com/md/semester_7/hydropower_engineering/chapter-1

## Question

Discuss the objectives and the strategies of the Hydropower Development Policy 2001. List out the various hydropower development institutions in Nepal.

## Short answer

The HDP 2001 objectives: generate low-cost, reliable, affordable electricity; link it with economic activities; develop export; protect environment. Strategies: private investment via BOOT, tax benefits; government as regulator; NEA power purchase; domestic demand priority; rural electrification. Institutions: MoEWRI, WECS, DoED, NEA, ERC, IBN, AEPC, DHM, IPPs.

## Answer

#### Objectives of HDP 2001
- Generate electricity at low cost from water resources.
- Supply reliable and affordable power throughout the country, including rural areas.
- Link electricity with economic activities for national growth.
- Develop hydropower as an export product.
- Protect the environment while developing hydropower.

#### Strategies
- Promote private sector investment through a simple legal system, BOOT and tax benefits.
- Government to act as policy maker and regulator; NEA to buy power and run the grid.
- Meet domestic demand first and plan export with long-term agreements.
- Promote rural electrification and micro-hydro.
- Follow environmental rules and share benefits with local people.

#### Institutions
MoEWRI, Water and Energy Commission Secretariat (WECS), Department of Electricity Development (DoED), Nepal Electricity Authority (NEA), Electricity Regulatory Commission (ERC), Investment Board Nepal (IBN), Alternative Energy Promotion Centre (AEPC), Department of Hydrology and Meteorology, and private developers (IPPs).

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. What is the strategy on domestic demand and export?
   A. Export first
   B. Meet domestic demand first and plan export with long-term agreements
   C. Ban export
   D. Export only to China
   Answer: B. The strategy puts domestic need first, then export. (Key point: Domestic first)

2. What is the role of NEA in the strategy?
   A. Collect rainfall data
   B. Buy power and run the grid
   C. Approve EIA
   D. Regulator of private sector
   Answer: B. NEA buys power and runs the grid while government regulates and makes policy. (Key point: Government role)

3. Which is an objective of HDP 2001?
   A. Generate electricity at low cost and develop hydropower as an export product
   B. Maximize imports
   C. Stop rural electrification
   D. Ignore environment
   Answer: A. Low-cost generation and export are objectives. (Key point: Objective)

## 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×
- [Major institutions and HDP outline](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Ainstitutions-and-hdp-outline) — 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
- [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×
- [Current HDP objectives and amendments needed](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Ahdp-current-objectives-amendments) — 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

## Related in other subjects

- [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
- [Government support and startup policy in Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fentrepreneurship_development%3Astartup-policy-government-support-nepal) — Entrepreneurship Development, chapter 8