KTM2DAY.com
KATHMANDU TODAY

Government to allot public shares worth Rs 102.28 billion to build hydel

Hydel-shares

The government has said it will allot shares worth Rs 102.28 billion to the public to raise funds for constructing hydropower projects with total installed capacity of 3,479 megawatts. The Ministry of Energy, Water Resources and Irrigation stated that it planned to build 19 hydropower projects under its flagship programme — Nepal’s Water, People’s Investment.

According to the ministry, they have finalised all the details and will launch the programme on Thursday so that all Nepalis have a certain share in the country’s hydropower projects.

Minister of Energy, Water Resources and Irrigation Barshaman Pun had unveiled a white paper on July 1 with plans to develop hydropower projects, instal transmission lines and generate 15,000 megawatts of electricity within 15 years.

The ministry stated that as per the agenda of Nepal’s Water, People’s Investment, it had selected hydropower projects in all provinces on the basis of proportional representation so that people from all provinces got the opportunity to buy shares of hydropower projects.

According to Dinesh Kumar Ghimire, secretary at MoEWRI, the public will have 49 per cent investment in the projects the ministry has selected. As per the plan drafted by the Hydroelectricity Investment and Development Company Ltd, the remaining 51 per cent investment will come from the government and other companies that the government has established to develop the energy sector.

As per the government’s plan, a total investment of Rs 698.80 billion will be required to construct the 19 selected projects. Of the total cost, Rs 208.74 billion will be realised through equity investment with the public receiving 49 per cent shares.

Chabi Pokharel, chief executive officer of HIDCL, said the government would give 10 per cent share to people directly affected by the projects and the remaining 39 per cent would be allotted to the general public.

The government plans to collect 51 per cent investment through different sources. It will collect Rs 22.46 billion from HIDCL, Rs 35 billion from Nepal Electricity Authority and its subsidiary companies, Rs 14 billion each from Electricity Generation Company, Nepal Telecom and Citizen Investment Trust and Rs 7 billion from Rastriya Beema Sansthan as equity.

Moreover, as per the HIDCL’s plan, the government will collect Rs 35 billion from Employees Provident Fund, Rs 42 billion from CIT, Rs 35 billion from HIDCL, Rs 21 billion from NT, Rs 14 billion from Rastriya Beema Sansthan, Rs 7 billion each from Nepali Army, Nepal Police and Armed Police Force, Rs 21 billion from the public and Rs 42 billion from government treasury as loan.

The government also has plans to manage the remaining Rs 37.70 billion through issuance of bonds and debentures and could seek investment from non-resident Nepalis as well.

The government, meanwhile, has yet to select three hydropower projects with capacity to generate 649 megawatts in Province 7.

Selected Hydroelectric Projects

Project Capacity (MW)
Upper Arun 725
Kimathanka Arun 482
Arun 4 372
Budigandaki Prok 2 240
Chainpur Seti 210
Seti 3 163
Budhigandaki Prok 1 100
Tamakoshi 5 96
Budhigandaki ‘Ka’ 75
Ghunsa Khola 72
Simbuwa Khola 70
Budhigandaki Gwar Khola 60
Upper Seti 50
Bheri Babai 48
Trushuli 3 B 37
Ikhuwa Khola 30

Related Post

Park View Horizon tenants appeal government, developer for help Tenants of Dhapasi-based Park View Horizon, which has suffered serious damage due to earthquake, on Monday appealed to the government and developer o...
Ncell unveils new brand logo and website Ncell on Tuesday officially unveiled its new brand logo promising affordability and innovation. Managing director of Ncell Simon Perkins and CEO So...
Year 2012 proposed as ‘Nepal Investment Year’ Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has proposed to observe the year 2012 as ‘Nepal Investment Year’. The federation p...
Japan work visas now open for Nepalis With the Japanese government on Tuesday endorsing its basic policy on a new visa system to encourage the entry of more foreign workers, Nepalis al...
Over half dozen firms eye oil business More than half dozen private firms, including a few big business houses, are eying investment in the petroleum sector after the government issued th...
Liverpool Retail acquires 33% stake in Nepal’s largest Momento Apparels India’s Liverpool Retail is acquiring a 33 percent stake in Momento Apparels, one of Nepal’s biggest readymade garment (RMG) manufacturers. Ahmedab...
2012-13 declared as Nepal Investment Year The government formally announced on Monday that fiscal 2012-13 would be observed as Nepal Investment Year (NIY). The first meeting of the National ...
ISPs preparing to increase internet fees starting from Jan 2019 The internet service providers (ISPs) have urged the government to raise the price of internet services from January. Citing that government ha...
Huaxin Cement to build $140m cement factory in Dhading Investment Board Nepal (IBN) on Wednesday initialed a project investment agreement (PIA) with Huaxin Cement Narayani to establish a $140 million cem...
US, Dubai companies okayed for petroleum exploration The government has awarded three petroleum exploration blocks to the USA-based BBB Champion Company and the Dubai-based Emirates Associated Business...
After Indian co interest, govt mulls TIA mgmt handover The government has begun homework to hand over the management and upgradation work of the Tribhuwan International Airport (TIA) to a foreign company...
Warren Buffett is investing in Paytm, his first Indian company Warren Buffett's company has taken a stake in One97 Communications Ltd, which owns Paytm, Buffett's assistant Debbie Bosanek confirmed in an email...
Solar Plants of capacity 200MW to be built within a year Prime Minister KP Sharma Oli has announced that the government will build solar plants with capacity of 200 MW and connect the power generated by th...
Nepal’s Grand Auto Show NADA 2018 kicks off The country's largest automobiles show, NADA Automobiles Show 2018, began in Kathmandu on Tuesday. The 13th edition of the automobiles show, wh...
Nepal becomes self-sustained in eggs Three years after the government announced that it would make the country self-sustained in eggs, the target has finally been met. According to Nep...
International airport spurs star hotel growth in Rupandehi Nepali entrepreneurs have been increasingly interested toward investing into hotels in Rupandehi district in view of the under-construction Gautam...
Apartment builders gear down and wait for market revival Apartment builders have been gearing down as they wait for the market to revive with unsold flats gathering dust and banks breathing down their neck...