Committee proposes Rs 30 billion company
KATHMANDU, June 14:
The committee, which was set up on June 5 to formulate regulations for soon-to-be-formed energy sector-focused financial institution, has proposed a company with authorised share capital of Rs 30 billion.
“The major promoters of the company will be the Ministry of Finance, Ministry of Energy, Ministry of Law and Justice, Nepal Telecom, Employees’ Provident Fund, Rastriya Beema Sansthan and Citizen’s Investment Trust. The general public will hold 10 per cent share in the company,” mentions a draft document prepared by the committee, which has been obtained by this daily.
The proposed name of the institution is Hydropower Development and Investment Public Limited Company. Last week the government had formed a six-member panel headed by former water resources secretary Surya Nath Upadhya and given two-week time to complete paperwork for the establishment of a financial institution that will focus on hydropower sector.
The panel comprises secretaries from the Ministry of Energy, Ministry of Finance, Ministry of Law and Justice and the Office of the Prime Minister and governor of Nepal Rastra Bank.
Neither officials at the Ministry of Energy nor members of the committee made any comment regarding the draft document, which is set to be made public on June 15.
“Drafting process is in the final stage. It will be made public soon,” said Energy Minister Gokarna Bista, refusing to specify when. “The Cabinet had set two-week time for the committee, and it is working on the draft.”
According to the draft document, the chief executive officer of the company will be appointed through free competition and the board of directors will have eight members.
The document also has proposed a management group to be set up by board of directors and the group will be entrusted with the task of carrying out day-to-day business of the company — from the date it is established till a CEO is appointed.
The management group will have the joint secretary from the Ministry of Finance or Ministry of Energy as the coordinator. Other members will include secretaries from MoF and MoEn and Nepal Rastra Bank, according to the document.
The stake-holders
Ministry of Finance Rs 10 billion
Ministry of Energy Rs 5 billion
Ministry of Law and Justice Rs 3 billion
Nepal Telecom Rs 3 billion
Employees’ Provident Fund Rs 3 billion
Rastriya Beema Sansthan Rs 2 billion
Citizen’s Investment Trust Rs 1 billion
General public Rs 3 billion
Source: THT
The committee, which was set up on June 5 to formulate regulations for soon-to-be-formed energy sector-focused financial institution, has proposed a company with authorised share capital of Rs 30 billion.
“The major promoters of the company will be the Ministry of Finance, Ministry of Energy, Ministry of Law and Justice, Nepal Telecom, Employees’ Provident Fund, Rastriya Beema Sansthan and Citizen’s Investment Trust. The general public will hold 10 per cent share in the company,” mentions a draft document prepared by the committee, which has been obtained by this daily.
The proposed name of the institution is Hydropower Development and Investment Public Limited Company. Last week the government had formed a six-member panel headed by former water resources secretary Surya Nath Upadhya and given two-week time to complete paperwork for the establishment of a financial institution that will focus on hydropower sector.
The panel comprises secretaries from the Ministry of Energy, Ministry of Finance, Ministry of Law and Justice and the Office of the Prime Minister and governor of Nepal Rastra Bank.
Neither officials at the Ministry of Energy nor members of the committee made any comment regarding the draft document, which is set to be made public on June 15.
“Drafting process is in the final stage. It will be made public soon,” said Energy Minister Gokarna Bista, refusing to specify when. “The Cabinet had set two-week time for the committee, and it is working on the draft.”
According to the draft document, the chief executive officer of the company will be appointed through free competition and the board of directors will have eight members.
The document also has proposed a management group to be set up by board of directors and the group will be entrusted with the task of carrying out day-to-day business of the company — from the date it is established till a CEO is appointed.
The management group will have the joint secretary from the Ministry of Finance or Ministry of Energy as the coordinator. Other members will include secretaries from MoF and MoEn and Nepal Rastra Bank, according to the document.
The stake-holders
Ministry of Finance Rs 10 billion
Ministry of Energy Rs 5 billion
Ministry of Law and Justice Rs 3 billion
Nepal Telecom Rs 3 billion
Employees’ Provident Fund Rs 3 billion
Rastriya Beema Sansthan Rs 2 billion
Citizen’s Investment Trust Rs 1 billion
General public Rs 3 billion
Source: THT
