KATHMANDU, Nov 21: The government has formally set up the Hydropower Production Company with the provision of allowing the Nepali citizens to investment in the hydropower projects.
The Ministry of Energy registered the company at the Company Registrar's Office on Sunday. The company has been registered based on the 37-point plan of action that the Energy Minister Janardan Sharma had unveiled earlier. The slogan of the action plan is - Nepal's Water, People's Investment.
The registering of the company has paved the way for the Nepali citizens to investment in designated hydropower companies as per their capacity.
Assistant spokesman at the Ministry of Energy, Gokarna Raj Pantha also stated that the company has been registered to provide the people the opportunity to directly invest in the hydropower projects.
"The Ministry registered the company paying registration fee of Rs 6.16 million. A board of directors would be formed under the chairmanship of Energy Secretary Anup Kumar Upadhayay which will pick up the Chief Executive Officer and start the other process," Pantha said.
Nepalis can invest up to 27 percent in the company. People from the project-affected area can invest 10 percent.
The company has an authorized capital of Rs 20 billion and paid-up capital of Rs 2 billion.
The Employees Provident Fund can invest 10 percent share, the Citizens Investment Trust five percent share, the Hydropower Investment and Development Company Limited four percent, Nepal Telecom 10 percent and the Rastriya Beema Sansthan two percent in the company. Similarly, The Ministry of Energy would have 20 percent share, the Ministry of Finance five percent share, the Ministry of Law, Justice and Federal Affairs five percent shares and Nepal Electricity Authority 10 percent shares in the company.
The company will forward big and medium scale projects as Budhigandaki, Naumure, Nalsinghgad and Uttarganga projects.
Before this, the government has already set up the Grid Company. RSS