Nepal unveils plan to invest in energy sector
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Nepal unveils plan to invest in energy sector

KATMANDU, Nepal (AP) — Nepal has unveiled a four-year emergency plan to end an energy crisis that includes special tax breaks for investors who build new power plants.

The Himalayan nation has suffered from rolling blackouts of up to 14 hours a day because of its overwhelmed power grid, forcing many industries to shut down or reduce operations.

The government expects to spend 20 billion ($275 million) to rejuvenate the power sector.

Private investors who help build hydro-electric power plants would be exempt from taxes and given a discount on royalties they pay the government.

Nepal produces about half the electricity it needs. Imports from India have failed to make up the difference. A communist insurgency that ended in 2006 hampered the building of new power plants.