9 trillion investment at risk of banks

Dec Thu 2020 06:19:33

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9 trillion investment at risk of banks

Kathmandu. If the government does not connect the transmission line on time, around Rs 900 billion investment of banks will be at risk. The failure of the Nepal Electricity Authority (NEA) to construct the transmission line on time, amend the provisions in the law in time and make it investment friendly, i.e. increase the power consumption capacity of the consumers, puts the investment of the banks at risk.

The existing 1,400 MW will be added in the current fiscal year, 1,500 MW in the current fiscal year and 1,500 MW in the next fiscal year.

Investors have been investing 30 percent and banks 70 percent in hydropower projects. A total of Rs 1.2 trillion has been invested in generating 4500 MW of electricity. Of that investment, Rs 300 billion belongs to the promoters and Rs 900 billion belongs to various banks. Apart from this, after completing the study for the generation of 18,000 MW of electricity, it has been settled for the power purchase agreement (PPA).