KATHMANDU: In a series of market-opening and regulatory interventions designed to energize trade and startup investments, Finance Minister Dr. Swarnim Wagle announced groundbreaking structural shifts while delivering the Fiscal Year 2026/27 budget address before a joint parliamentary session on Friday.

In a landmark policy expansion for the energy sector, the government has officially opened the doors for the private sector to engage directly in cross-border electricity trading.

This move terminates the long-standing state monopoly on power exports, allowing private developers to independently negotiate and sell power in international markets.

Simultaneously, the government is cracking down on idle infrastructure. Dr. Wagle announced that the government will revoke the licenses of all hydropower projects that have secured Power Purchase Agreements (PPAs) but have failed to initiate physical construction.

The unutilized capacity reclaimed from these stagnant projects will be reallocated to active developers under a strict “Take or Pay” framework.

On the financial and startup front, the budget introduces legal mechanisms to mobilize venture capital.

The government will draft and enact a comprehensive Limited Liability Partnership (LLP) law, legally clearing the path for angel investors to park funds into Private Equity and Venture Capital (PEVC) ecosystems.