Butwal Power Co provides 40 per cent dividend

Himalayan News Service

Kathmandu, February 1:

Butwal Power Company Ltd (BPCL) which was privatised two years ago, has been able to improve its performance compared to previous years which has helped its promoters to provide 40 per cent dividend to shareholders in the fiscal year 2003-04.

Disclosing the BPCL’s progress report, Gyanendra Lal Pradhan, chairman of the

executive committee of the company said that following privatisation, the company

has performed better and had been successful in retaining its manpower.

Pradhan said that the government has been able to provide even interim dividends of 20 per cent to its shareholders during the first six months of the current fiscal 2004-05, thanks to better management. BPCL’s main business is generation of hydroelectricity, distribution of electricity and providing consultancy services related to generation and distribution of electricity, he informed.

As per the power purchase agreement, Andhi Khola power plant generated 39 Gigawatt-Hours (GWh) out of which 26.9 GWH (69.04 per cent) was sold to NEA against the targeted 30 GWh as per the power purchase agreement (PPA) with NEA, he said. 0.19 GWh of excess energy was also supplied to NEA. A total of 10.2 GWh was sold to local consumers who number more than 22,000, said BPCL officials.

Pradhan commented, there is a huge potential for hydropower in Nepal but it is not properly managed due to ineffective planning and implementation mechanisms.

Clear vision is needed in exploiting Nepal’s hydropower potential which is lacking, he said, adding that there is over Rs 100 billion worth of market potential in this area.

BPCL has a total of 900 shareholders. The company’s shares have already been listed at Nepal Stock Exchange Ltd for share trading at the rate of Rs 460 each in a short period of time. BPCL’s market comes to be over Rs 4 billion. The company has future plans to expand its hydropower plants and increase electricity distribution in districts, said Pradhan.

Talking about the present situation at a press meet, Pradhan said that Jhimruk Rehabilitation Project has been successfully completed.

He said that the company has signed an agreement concerning the construction of 3.8 MW Khudi Hydropower projects in which the company is a majority shareholder and sponsor of the project.