BPC AGM: Diwakar Baidya elected independent director, Chandi Shrestha unopposed public director

ShareSansar, February 24:

The Annual General Meeting of Butwal Power Company Limited has elected Diwakar Baidya as the independent director while Chandi Prasad Shrestha has been elected unopposed to the post of its public director.

The 21st AGM of the leading hydropower developer held at its head office at Buddha Nagar, Kathmandu also endorsed 18 percent cash dividend to its shareholders from the net profit it posted in the last fiscal year 2069/70.

The annual event also appointed the auditor for the current fiscal year.

It may be noted that BPC has pledged lesser dividend this time around as compared to the last few fiscal years.

It had posted a net profit of Rs 24.39 crore in the last fiscal, which is almost half or 49.6 percent less as compared to its net profit in the previous fiscal when it had earned a net profit of Rs 48.35 crore.

For the previous fiscal year, BPC had distributed 25 percent dividend, and in the year before that it had offered 30 percent dividend, including 10 percent bonus shares.

The problem with the hydropower developer is that it is now largely dependent from the dividend it gets from Himal Power Limited, which is its promoter.

BPC has 17 percent stake in Himal Power, which is operating the Khimti project.

It is one of the reasons that BPC held its AGM one and a half months behind the schedule so that it can show that it can add the dividend from Himal Hydropower on its balance sheet.

In the previous fiscal years, BPC used to hold the AGM by Poush end at the latest.

During the AGM BPC officials informed that the profit has been falling due to the closure of Andikhola project and they also acknowledged of the shrinking dividends from companies BPC is affiliated to.

Company’s chairman Padma Jyoti claimed that they were committed to make BPC the biggest power developer in the country within the next four – five years.

So far the ground realities, however, does not seem encouraging at all.

Himal and National Hydro and Electric Limited where BPC has stakes are also offering lesser dividends.

On the other hand, the PPA BPC had signed with the Nepal Electricity Authority for its Jhimuk and Andhikhola projects have also expired since Shrawan, and it is yet to renew the agreement with the NEA.

BPC, however, is showing projected profit for the current fiscal year from the electricity
generation despite the fact that the PPAs have expired.

The company is poised to face more problems after 50 percent of the stake in the Khimti project will be handed over to the NEA by July 2020.

If BPC does not quickly come up with new projects by 2020, it will not be in a position to offer any dividend to its shareholders, according to the sources who are closely following the company.