Nepal’s IPPAN Urges Hydropower Companies to Offer Shares at Face Value to Locals

Nepal’s Independent Power Producers’ Association (IPPAN) has urged hydropower companies to offer shares to locals at face value, rather than at a premium price.

In a press statement released on Sunday, Ashar 17, 2083, IPPAN expressed concern over some promoter companies discussing the option of issuing shares to locals at a premium price.

According to IPPAN, the Securities Registration and Issuance Regulation, 2073, stipulates that 10% of shares should be allocated to locals affected by hydropower projects. IPPAN has requested its member companies to make these shares available to locals at face value, which is Rs 100 per unit.

IPPAN believes that selling shares to locals at a premium price would limit their access, weaken their sense of ownership, and negatively impact the trust between the project and the local community. On the other hand, making shares available at face value would make locals genuine partners in the project, reduce social conflicts, and create a conducive environment for the project’s timely completion.

IPPAN has also urged the government to simplify, make transparent, and expedite the regulatory process for share issuance and to address the delays in share issuance in hydropower projects.