The parliament's Finance Committee has asked the Ministry of Water Resources to look into the possibility of reviewing the power purchase agreements (PPA) between the Nepal Electricity Authority and independent power producers (IPPs). The Committee is concerned the NEA is likely to incur huge losses if it purchases power at the agreed rates and terms. The NEA has PPAs with Khimti, Bhotekoshi, Indrawati and Upper Modi hydroelectricity projects.

Committee members also rapped the NEA for purchasing the "flood energy" generated by the projects during the rainy months. They also asked the government to work towards finding a basis for reopening the PPAs and renegotiating the terms. The Committee has also asked that no new agreements be reached until after the issue was resolved.

Meantime, businesses that have already invested in the power projects say that while the Committee may be right in looking after the country's interests, it is too late to make any revisions in the agreements. They argue that any attempt to re-open negotiations on agreed PPAs would scare away the little foreign investment there is in the sector forever.