Kathmandu. The Independent Power Producers’ Association of Nepal (IPPAN) has strongly objected to the draft of the Guidelines on General Qualification for Public Offerings (IPOs), 2083 issued by the Securities Board of Nepal (SEBON). IPPAN has objected to the requirement that the face value of the company should be Rs 100 to bring the proposed IPO.
Mohan Kumar Dangi, chairman of IPPAN, said that the guidelines related to the IPO brought by the Securities Board of India are unfavorable for the hydropower sector. “Looking at the draft of the directive, it does not seem to be open for the private sector. So, instead of making projects, we are better off fighting with the regulator,” he said.
Dangi said that the rule that the net worth of the company that is going to bring the IPO should be Rs 100 seems to have been brought because hydropower has not understood it. “In hydropower, it is the first investment,” he said, “The income comes only after the lights are on. Some of the expenses are not within that 100 rupees. Therefore, every project is at a loss.” ’
Dangi said that the directive that is going to be brought is being brought by people who do not understand the energy sector. “Some people say that the IPO should be brought after the completion of the project, how can the project be completed without investment?” he said. Rather, if someone has done something against the law, action should be taken against him. He did not put the entire sector in crisis. ’
Chairman Dangi said that Rs 70 billion has been spent on the 17,000 MW project. “Now that we can do this, the government will have taken back all the licenses given to us to build projects,” he said. ’
Dangi said that a discussion on the draft of the directive was called on Sunday. “We will come to a decision on how to move forward from that discussion,” he said.
