The government has announced to prioritise reservoir-based hydroelectric projects.

Presenting the budget for the upcoming fiscal year in Parliament, Finance Minister Barsha Man Pun said that construction of hydropower projects with large generation capacity will be started.

He said the construction of the 1200 MW Budhigandaki Hydropower Project and the 1061 MW Upper Arun Hydropower Project would be started. He also said the government would start construction of the Nalagad, Jagdulla, and Naumure multipurpose hydropower projects.

The minister said the construction of 77.5 MW Ghunsa and 70 MW Ghunsa Khola hydropower projects would be funded with the investment from the Nepalis in foreign employment.

He announced that the government would start the construction of the 783 MW Sunkoshi III hydropower project.

The government aims to connect 100 MW of solar projects from the private sector to the national grid.