Hydropower development remained a state monopoly in Nepal for a long time. Hydropower Development Policy of 1992, Electricity Act, 1992 and Water Resources Act, 1992 opened the door for investment in hydropower development to the private sector. Nepal Rastra Bank (Central Bank of Nepal) has categorized hydropower projects as one of the priority sectors for investment. Nepali banks and financial institutions have also shown interest to provide loans in this sector. Hence, it is an emerging sector in the country.
Electrification is one of the pre-requisites for economic development. Electricity will not only increase the quality of life but also support the livelihood of people, thus contributing to poverty alleviation and economic development. There is also scope for exporting surplus energy. For opening investment in hydropower sector in the private sector with the view of contribution towards the economic development of Nepal, Appolo Hydropower Pvt Ltd was established in 2063 B.S.