Hydro development bank's investment policy approved

HIMALAYAN NEWS SERVICE

KATHMANDU: Hydropower Investment and Development Company has approved the investment policies of the company after more than a year of its establishment.

The financial resource collection policy, loan investment policy and governance policy have also been approved. The company, established during the tenure of the Jhala Nath Khanal government to focus only on hydropower investment, will be able to invest in the hydropower sector only after getting approval from Nepal Rastra Bank.

Last year, the government established the company with authorized capital of Rs 50 billion and issued capital of Rs 10 billion, out of which the government has contributed Rs 5 billion, Employee Provident Fund, Rastriya Beema Sansthan and Citizen Investment Fund each have contribute one billion each as promoters’ share. The company has allocated Rs 2 billion for the general public.

Though it was expected to operate immediately, due to delay in finalisation of investment policy, the company was not able to move ahead.

The six billion that was collected from various promoter shareholders has been kept in the bank and the company has acted as depositor only. Once the policy is approved by Rastra Bank, it will immediately move to invest in the hydro sector,” said Hariram Koirala, secretary, Ministry of Energy, who is also the chairman of the company.

The company has the authority to invest in hydropower generation, transmission and distribution and it can acquire loan and grants from abroad to invest in hydro sector.

The policy states the company will only invest in projects with capacity above 25 megawatts and will not release loan below Rs 250 million. But the company will invest in projects above 10 MW in some projects that have run into financial trouble.