The 214th meeting of the IPB chaired by Industry Minister Mahesh Basnet cleared a proposal of 92 percent foreign direct investment (FDI) and 8 percent domestic investment in 65MW Kaligandaki Upper Hydro Project.
The board also decided to allow Essel Clean Hydropower Company, which has been registered under the foreign investors’ category, to increase capital and capacity.
The meeting also decided to allow Madi Power Private Limited to amend its loan agreement.
According to the IPB, a joint venture of China’s Sinohydro Holding Limited and Nepal’s Trade Link Global Private Limited will promote the Kaligandaki Upper Hydro Project based in Parbat and Myagdi districts.
Trade Link Global, is a sister concern of TLI, a company engaged in a wide range of businesses ranging from supply and installation of machinery equipment and consumer electronics to computers. The company also handles projects such as roads, transportation, water resources and irrigation among others.
Sinohydro Holding Limited, through its subsidiaries, is involved in investment, construction and operation of hydropower projects in Nepal. The company is currently undertaking the 50MW Upper Marsyangdi A hydropower Project.
Maheshwar Neupane, director general at the Department of Industries and member secretary of the IPB, said the joint-venture is investing Rs 22 billion in the project. With Sinohydro taking 92 percent stake in the project, it will invest Rs 20.24 billion.
Trade Link Global had done Environment Impact Assessment (EIA) of the 72MW project, whose capacity has now been reduced to 65MW. The run-of-the-river project is located at Piple VDC, of Myagdi district.
As per the plans of Trade Link Global, the project’s power house will be built in Ghumaune Taal. The company plans to construct a dam at Kali Gandaki-Begkhola confluence, and an 8km tunnel form the dam site of Ghumaunekhola. Excel Clean Hydropower has been allowed to increase the capacity of its project to 82MW from 40MW, according to Neupane. The project is located at Garma and Tilanga VDCs of Solukhumbu district.
The company has also been authorised to sign a loan agreement worth Rs 13 billion with a number of foreign companies. “The project will have a total investment of Rs 18 billion. Of the total, 49 percent will be invested by an Indian partner and remaining will be funded by Nepali investors,” Neupane said.
Besides hydro projects, the meeting also gave its go-ahead to Tanahu-based Abanish Distillery to increase capital and capacity. Hetauda-based United Brewery Nepal has also been allowed for capacity upgradation and funds injection.
Source : eKantipur