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KATHMANDU: Minister for Energy, Water Resources and Irrigation Shakti Bahadur Basnet pledged to mobilise the Hydroelectricity Investment and Development Company Ltd (HIDCL) for the development of energy sector by further revitalising it.
The HIDCL was established as a public investment company to mobilise funds for investment in the generation, transmission and distribution of hydroelectricity.
In a discussion regarding restructuring the HIDCL in his office on Tuesday, Minister Basnet reaffirmed to revitalise the company as a strong financial institution and promote further investment.
Minister Basnet pointed out the need for the HIDCL to collaborate with the bilateral and multilateral donor agencies and attract more investments in the energy sector in the country.
The HIDCL has already invested more than Rs 27 billion. The company has invested over Rs 6 billion as its own capital in 12 projects having a total of 902 megawatts (MW) of power.
Likewise, over Rs 21 billion has been invested in 19 projects with 1,467MW power, it was shared.
Dinesh Kumar Ghimire, Secretary at the Ministry of Energy, Water Resources and Irrigation and also Chairperson of the HIDCL, spoke of the need to revitalise the company and take it forward with new plans and vision.
The company recently signed a memorandum of understanding (MoU) with various four projects for loan investment worth Rs 13 billion. The company has been entrusted with the responsibility of arranging funds for the 1,063MW Upper Arun project through domestic resources.
Recently, Nepal Rastra Bank urged the HIDCL for structural reforms so as to remain under the Banking and Financial Institutions Act.
Although there was a provision for making loan investments in projects, the company had been facing problems due to lack of legal provisions to raise the loan.
HIDCL CEO Arjun Kumar Gautam admitted that the Company was in dire need of diversification and expansion of investment resources.
