According to Ippan, 50 companies have suffered huge financial losses due to the delay in issuing shares in the 975 MW project.
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The Independent Energy Producers Association of Nepal (IPPAN) has claimed that energy sector investors lost only one trillion eight billion 500 million rupees when the Securities Board Nepal (Seban) delayed the issuance of shares. In the letter sent by Ippan to Sevan today, it is mentioned that the investors lost the amount due to the delay in issuing the shares.
According to IPPAN, after June 2080, due to delay in IPO and right share issuance, 50 companies with 43 IPOs and 7 right shares, which are constructing projects equal to 975 megawatts, had to lose so much money because they could not proceed with the construction.
In the letter sent to Seban, it is mentioned that due to the timely issuance of shares of 50 companies, the amount of 23.27 billion 8 lakhs was not issued and due to the non-issue on time, the interest amount increased by 12.44 billion 54 lakhs, the cost increased by 24.33 billion 67 lakhs and the revenue income of 71.78 billion 81 lakhs was lost.
Ippan says that Seban is delaying the issue of shares by showing reasons such as the fact that there is no appointment of a chairman in Seban and that there is no law for the issue of shares to have more than 90 percent net worth. Ippan has informed that during this period only 10 companies have been given permission by Seban for IPO and 11 companies have been given permission for right share.
IPPAAN President Ganesh Karki said that those who have applied for the IPO and are waiting for it and who have been removed from the applicant should be re-participated to issue the IPO immediately and issue the IPO after the production. A very large amount of investment is required in the construction of the project, and the regulations regarding the issue of securities stipulate that an application for IPO can be made after 60 percent of the construction is completed.
In order to reduce the cost of the project, there is a provision for the hydropower developer to reduce the amount from the IPO and take a bank loan while managing the finances. He said, 'Based on the report of the High-Level Economic Reforms Suggestion Commission, it is wrong and illegal to implement the policy of not accepting IPO applications until electricity production is started without clear legal and policy regulations, as it is stipulated that public shares are necessary for the energy sector while it is under construction.'
As a responsible citizen and energy producer, in order to make the energy sector responsible and more accountable, on August 24, 2080, between the Securities Board and IPPAN, to enhance institutional governance, to make the energy sector more orderly and dignified In addition to making, 12 points of agreement were reached with the aim of addressing people's complaints and concerns. It is stated in the
letter, 'However, the locking period of the shares will not be opened until the lights are turned on, the PPA and financial management should have been completed by the partner company to issue the right shares, and 65 percent of the construction should be completed before the IPO is issued.'
