A major restructuring of the Nepal Electricity Authority is on the horizon as part of a broader reform drive aimed at strengthening the energy sector and improving the investment climate.
The plan is included in a 100-point governance reform agenda approved by the Cabinet shortly after the new administration assumed office. Authorities are set to prepare a detailed roadmap within a month to unbundle the NEA, a step that is expected to separate and reorganise key functions such as generation, transmission, and distribution.
The reforms also outline a wider strategy to position the energy sector as a backbone of economic development. A mixed financing approach is being considered, combining public resources with private sector investment, foreign capital, and contributions from the Nepali diaspora to support long-term sector growth.
To make the investment process smoother, a single-window approval system under the Investment Board of Nepal is expected to be introduced within a month. This is intended to simplify procedures for both domestic and foreign investors. In parallel, business registration, tax processes, and bank account opening are planned to be integrated into a unified system within 45 days.
The government is also focusing on improving institutional support for businesses by strengthening service centres and reducing bureaucratic delays. Registration fees for smaller industries will be waived to encourage new enterprises.
Another key priority is expanding electricity exports. A dedicated export strategy is expected within a month, while long-pending issues related to power purchase agreements and licensing are targeted for resolution within six months.
The proposed changes indicate a push to modernise the energy sector, reduce operational bottlenecks, and create a more investment-friendly environment.