To build mega hydropoer projects
KATHMANDU, Oct 7: Bidyut Utpadan Company Ltd has finally come into being.
The plan to form a separate company for hydropower generation was first unveiled through Hydropower Development Policy in 2001.
The company will translate the plan to eradicate energy crisis announced in February last year into action as well as implement both long-term and short-term energy generation plans, the Ministry of Energy said in a statement on Thursday after the cabinet decided to form the company.
The new company is expected to make power generation more effective compared to Nepal Electricity Authority (NEA) which also distributes energy and manages transmission lines.
The Bidyut Utpadan Company Ltd has paid-up capital of Rs 300 million initially. Its authorized capital is Rs 10 billion. Its promoters have already pledged Rs 2 billion worth of equity investment. According to the company profile, it will form subsidiary companies to develop mega projects, including storage projects.
The formation of Bidyut Utpadan Company Ltd has ended confusion on hydropower development modality as it will take initiative to develop storage type projects like Nalsing Gad, Budhigandaki, Naumure and Chisapani, among others.
At present, Budhigandak and Nalsing Gad projects are overseen by development committees which are often regarded as slow institution that often come under political influence.
Speaking at a press meet on Tuesday, Minister for Energy Janardan Sharma had said that the company will focus on large scale projects while a separate company that will be set up with majority investment from NEA will build hydropower plants of medium scales.
Bidyut Utpadan Company Ltd has allotted 17 percent of shares to general public while another 10 percent is earmarked for project’s affected community and another 2 percent for the under privileged families, according to the press release.
This is probably the first time that share allotment has been made for under-privileged families.
Employees Provident Fund will also be promoter of the company, holding 10 percent stakes. The recent amendment to the Employees Provident Fund Act allows the fund to be equity investor of infrastructure projects.
Source : Republica