Kathmandu : Although Hydro Electricity Investment and Development Company Limited (HIDCL) has approved large-scale investments in the energy sector, the expected fund disbursement has not materialized, leading to a significant increase in the company’s bank balances.
The company has stated that so far it has approved loans and equity investments totaling NPR 6.537 billion for 47 hydropower and renewable energy projects. However, of the approved amount, only NPR 1.507 billion has been disbursed, while the remaining NPR 5.03 billion is yet to be released.
The delay in fund disbursement is attributed to incomplete project construction progress, financial closure, necessary permits, and other technical procedures. As a result, cash balances in the company’s bank accounts have been increasing, affecting the capital utilization rate.
Of the loans disbursed by the company to hydropower projects, NPR 799 million remained outstanding as of the end of mid-January 2026. The company stated that for projects already in operation, loan recovery is being carried out regularly according to the repayment schedule.
Similarly, during the same period, equity investments totaling NPR 443 million were made in hydropower and renewable energy companies promoted by both the public and private sectors, based on market value.
HIDCL, established with the aim of mobilizing long-term financial resources for energy infrastructure, has stated that it will accelerate approved investments and implement a strategy to improve the capital utilization rate.
Urjasanchar
