Kathmandu. The Independent Power Producers’ Association of Nepal (IPPAN) has drawn the attention of Prime Minister KP Sharma Oli to create an environment for the issue of shares of hydropower companies. The Public Accounts Committee (PAC) has not given permission for issuing primary shares (IPOs) and right shares of 53 hydropower companies for the last 20 months.
The public offer of Rs 20 billion of 42 energy companies who had applied for the IPO has been stopped, while the right shares worth Rs 4.5 billion of 11 companies have also been stopped.
According to IPPAN, the construction work of these hydropower projects has come to a standstill due to lack of permission for public issue, while on the other hand, according to the existing legal provision, the mandatory provision of issuing IPOs to the public by the hydropower companies has not been implemented.
Ippan said that the ipo and issuance of right shares of hydropower projects have been stopped after July 2080, which has caused a serious crisis in the construction of the project.
##inline_tags_PLACEHOLDER_9#What has been said in the direction of the #लेखा Committee?##inline_tags_PLACEHOLDER_11###
The Securities Board of Nepal (SEBI) has stopped allowing the IPO citing the directive of the Public Accounts Committee held in 2080-09/12 that the real net worth should be more than 90 to issue the IPO. Prior to this, the approval of the IPO was stopped due to the absence of the chairman in the board.
Since the term ‘real net worth’ does not exist in this sector, the Securities Board has not taken any action saying that it can issue shares only after the government defines it. As a result, there is a problem in the financial management of under-construction projects from the private sector. On the other hand, the local affected people have started obstructing the construction of the project, saying why they have not given shares.
Similarly, the decision of the Accounts Committee No. The provision of not selling one-third of the shares after repaying the loan taken in the project construction of the basic shareholders who invested in the establishment of the hydropower project mentioned in Section 6 has also started affecting the equity investment environment.
At present, more than 10,000 founder investors have started investing in one project through crowd financing. Due to the share investment of the general public and promoters, there has been a significant help in raising capital in the energy sector.
If there is a provision to not sell shares even after the expiry of the period, then the promoters of one project will invest in another project and the possibility of building big projects in the future will be reduced, while the implementation of the ‘Energy Development Roadmap and Action Plan, 2081’ with the goal of generating 28,500 MW electricity in the next 10 years of the Government of Nepal will also be seriously hampered. IPPAN has urged the Prime Minister to reconsider the decision and create an environment for IPO issuance based on the existing legal system.
#inline_tags_PLACEHOLDER_9##कस्तो is the global prevalence of the lockin period?##inline_tags_PLACEHOLDER_11#
In other countries where hydropower production is high, the lock-in period of founder shares is not found anywhere for more than two years. Most countries are raising capital through crowd financing by reducing the lock-in period of two years to six months, saying that the lock-in period is too long.
At such a time, the decision of the Public Accounts Committee and the securities board on the basis of it has stopped the permission to issue shares, which has hampered the work of energy projects. Therefore, IPPAN has drawn the attention of the Prime Minister to create an environment to resume the construction of the stalled project.
#inline_tags_PLACEHOLDER_9##सबै agencies, problems not solved#inline_tags_PLACEHOLDER_11
Ippan has urged the Prime Minister to take initiative to resume the stalled shares as the problem has not been resolved so far, although letters have been sent to the Honorable Public Accounts Committee as well as the Finance Minister and Secretary, Energy Minister and Secretary, Securities Board, among others.
For this, IPPAN has also expected necessary instructions from the Prime Minister to create an environment for the construction of hydropower projects to resume as soon as possible by coordinating with the Public Accounts Committee of the honorable Parliament and giving necessary instructions to the Securities Board.
IPPAN is an umbrella organization of more than 600 private sector power generation companies active in power generation in Nepal. Private sector companies contribute 80 percent of the country’s electricity generation. A total of 3500 may in the country. Or. A total of 190 projects of 2,800 MW each have come into operation from the private sector.
A total of 141 projects of 4,063 MW capacity are under construction and 141 projects of 4,363 MW are awaiting financial management after signing power purchase agreement (PPA) with Nepal Electricity Authority( NEA).
Similarly, the capacity of the projects that have applied for PPA in Nepal Electricity Authority after completing the survey work is 8,000. Or. more than that. The capacity of the project, which has applied to the Department of Power Development for obtaining construction permit, is more than 10,700 MW. So far, more than Rs 1.5 trillion has been invested by the private sector in all these projects.
IPPAN has made a special request to Prime Minister Oli to create an environment for investment as more than Rs 6 trillion investment is required to achieve the government’s target of generating 28,500 MW of electricity.
