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The government has introduced a policy aimed at expanding energy production, consumption, and trade while accelerating domestic electricity consumption and industrial development. The policy and program for the upcoming fiscal year presents a clear roadmap to develop the power sector as a key pillar of the national economy.

The policy document states that private sector participation will be ensured in hydropower generation, transmission, distribution, and power trade. The government also plans to use cross-border electricity trade agreements as a means to attract long-term investment in the energy sector.

The government has set a target to significantly increase domestic electricity consumption by promoting energy-based industries. Priority will be given to industries such as green hydrogen, green ammonia, and chemical fertilizer production. To support these industries, the policy proposes tax and customs exemptions, concessional electricity tariffs, and investment-friendly measures.

Similarly, off-grid solar, wind, and micro-hydropower systems will be expanded in areas not connected to the national grid. This is expected to improve electricity access in remote and rural regions.

The government also plans to utilize energy infrastructure in the transport sector. According to the policy and program, grid-hydrogen infrastructure will be introduced to expand the commercial use of electric transportation.

Through the expansion of the energy sector, the government’s long-term goal is to boost domestic production, create employment opportunities, and build an export-oriented economy.

Jalasarokar