This Hydropower Development Policy, consisting of six Sections, shall be developed to achieve the following objectives: to generate electricity at low cost by utilizing the water resources available in the country; to extend reliable and qualitative electric service throughout the Kingdom of Nepal at a reasonable price; to tie-up electrification with the economic activities; to render support to the development of rural economy by extending the rural electrification; to develop hydropower as an exportable commodity. Generation and consumption of electric energy in Nepal is minimal. The major sources of energy are still the agriculture and the forest-based resources.The following strategies shall be pursued to accomplish the aforementioned objectives of hydropower development: to extend hydropower services to the rural economy from the perspective of socio-equity with the realization of the fact that development of power sector, having a direct concern with agricultural and industrial development, is a pre-requisite; to pursue investment friendly, clear, simple and transparent procedures so as to promote private sector participation in the development of hydropower, also taking into account internal consumption and export possibility of hydropower.