The government is going to provide unsecured and cheap interest rate loans to the financially poor families to buy the initial public offering (IPO) of hydropower companies.

The Ministry of Energy, Water Resources and Irrigation has made this arrangement through the 'People's Hydropower Program (Operation and Management) Procedure, 075 amendment. In the procedure amended by the ministry, it is said that loans will be arranged at subsidized rates for poor citizens without collateral. However, it has not been decided who will provide the loan at the concessional rate. 

Energy Minister Deepak Khadka said that discussions are underway to provide loans through banks and development partner organizations under the guarantee of the state. He claims that this step will be important in alleviating poverty, improving the living standards of citizens and contributing to per capita income. Subsection 1 of Section 10 of the Procedure is added. In the said sub-section, it is mentioned that in the case of the shares allocated for the poor citizens, the company should arrange for the investment to be made after 50 percent of the project is completed.

Similarly, sub-sections 4 and 5 of section 10 have been added. The company will have to make necessary arrangements with the help of the Ministry to provide loans at 100% unsecured subsidized interest rate through banks and financial institutions to economically disadvantaged, backward and poor citizens in the district where the project will be built for the purchase of shares. But there will be no hindrance in providing loans at 100% unsecured subsidized rate of interest by charitable organizations or social funds or mutual funds or organizations of a similar nature.

According to sub-section (4) of sub-section 5, the credit facility per household may be from 2 lakh to 5 lakh rupees according to the connected capacity of the project. According to the Ministry, this arrangement has been made to ensure the share of hydropower to the poor citizens under the 'People's Hydroelectricity Program' to enrich the country by improving the living standards of the poor citizens across the country. For the citizens of the areas affected by the hydropower project, the poor class citizens who are unable to secure shares will be provided with loans through banks and development partner organizations under the guarantee of the investment of 2 lakhs to 5 lakhs at a concessional interest rate. 

Energy Minister Khadka said that to ensure the right to resources for all citizens, the provision of subsidized loans to poor and needy households has been made. "All citizens should have the right to resources, the prosperity we envision cannot be achieved unless the poor and underprivileged can be promoted," he said.

ministry will work by giving priority to the needy citizens defined by the government of Nepal and the needy citizens recommended by the local level. He claims that this procedure was introduced for those who do not have money. "This is an economic revolution, it will advance the poor class and help in building a prosperous country. The government has revised this procedure targeting lower class citizens and low-income national service employees," he said.

Initially, the project will be implemented in the affected districts and the poor residents of the districts where the transmission line is located, but the system will be gradually implemented throughout the country, according to the ministry. It is mentioned in the procedure that the company will take the support of the ministry to make the necessary arrangements to provide loans through banks and financial institutions to the economically disadvantaged and poor citizens in the district where the project will be built for the purchase of shares. 

According to the number of households given by the local government, the government will identify the poor and extremely poor and guarantee their shares, the ministry said. The government has already taken forward 22 hydropower projects across the country under the People's Hydropower Programme, including Upper Trishuli, Upper Arun, Arun Kimathanka, Ghunsakhola, Simbuwakhola, Rasuwagadhi, Sanjen, Upper Seti, Budhigandaki, Bheri Babai Diversion, Chainpur Seti and others. Suresh Acharya, secretary of the ministry said that the procedure has been amended to raise the living standards of the poor. Restrictions on share buying and selling and share underwriting and credit rating arrangements have been removed from the procedure. 

However, people's hydropower programs are not new. The plan to produce 3,500 megawatts of electricity with the slogan "Nepal's Water, People's Investment" was made about 6 years ago. The program of the then government has been included in the policy and program of the financial year 2076/77. It was said that such a program would be taken forward to promote energy production with the investment of the common Nepalese. However, only common shares of Upper Trishuli 3B, Rasuwagadhi and Sanjen hydropower projects have been sold under the program. The rest of the shares have not been issued. The current government is going to continue the same program again.