The Association of Independent Power Producers, Nepal (IPPAN) has drawn the attention of Prime Minister KP Sharma Oli to create an environment for share issuance of hydropower companies.

The Securities Board of Nepal (Sebon) has not given permission for the primary share issue (IPO) and rights shares of 53 hydropower companies for the past 20 months, following the instructions of the Public Accounts Committee.

20 billion rupees worth of 42 energy companies that have applied for IPO issue  Due to the suspension of public issue, the right shares of 11 companies worth 4.5 billion rupees have also been suspended.

share Not getting permission to publish Ippan claims that the construction work of the hydroelectric project has stopped. According to the existing legal system, the mandatory system for hydropower companies to issue an IPO for the general public has not been implemented.

After July 2080, when the IPO and issuance of rightful shares of the hydropower project was stopped, it caused a serious crisis in the construction of the project.

According to the 19th meeting of the Public Accounts Committee, the Nepal Securities Board has stopped giving permission for the IPO by showing the instructions that the real net worth should be more than 90 to issue the IPO. Before that, the permission of IPO was stopped because the chairman was not appointed on the board.

Since the term "real net worth" does not exist in this area, the Securities Board has not proceeded with any work saying that it can issue shares only after the government defines it . Due to which, problems have arisen in the financing management of projects under construction from the private sector. On the other hand, the local affected have started obstructing the construction of the project saying why they have not given the shares.

  Accounts Committee's decision no. The provision of not being able to sell one-third of the shares even after the lock-in period of 3 years after paying off the loans taken by the basic shareholders who invested in the hydropower project mentioned in 6 has already started affecting the equity investment environment. 

Now more than 10,000 founding investors have started investing in just one project through crowd financing. Due to the share investment of the general public and promoters, significant support is being provided in the capital collection in the energy sector where there is a large investment. 

If there is a provision of not being able to sell shares even after the end of the period, the promoter of one project will invest in another project, and the possibility of building large-scale projects in the future will be less. Also, the implementation of the 'Energy Development Roadmap and Action Plan, 2081' with the goal of generating 28,500 megawatts of electricity in the next 10 years of the government of Nepal will be seriously hampered, so reconsider the decision to create an environment to invest in the founding shares of hydropower projects through crowd financing to meet the government's goal. Ippan has requested the Prime Minister to create an environment for IPO issuance based on the existing legal system.

Earlier, Ippan has sent a letter to the Public Accounts Committee as well as the Minister of Finance and Secretary, the Minister of Energy and Secretary, the Securities Board, etc., to create an environment for the issuance of withheld shares, but the problem has not been resolved yet, so Ippan has requested the Prime Minister to take the initiative to resume the frozen shares .

In coordination with the Public Accounts Committee of the Honorable Parliament, IPPAN expects necessary instructions from the Prime Minister to create an environment for the construction of hydropower projects as soon as possible by giving necessary instructions to the Securities Board.