Risk of Investment Freeze in Hydropower Sector: IPPAN Objects to SEBON's Draft IPO Directive
Vijay Mohan Bhattarai, Secretary of the Independent Power Producers' Association Nepal (IPPAN), has stated that the draft IPO approval directive published by the Securities Board of Nepal (SEBON) poses a risk of halting investment in the hydropower sector. Claiming that SEBON has added further pain to an already disaster-stricken hydropower industry, he asserted that the 100 percent net worth requirement would prevent any hydropower company from launching an IPO.
Vijay Mohan Bhattarai, Secretary of the Independent Power Producers' Association Nepal (IPPAN), has said that the draft directive on IPO approval published by the Securities Board of Nepal (SEBON) will halt investment in the hydropower sector. Stating that SEBON has added further pain to a hydropower industry already battered by natural disasters, he warned that the draft poses a risk of completely stopping investment in the sector.
According to him, the 100 percent net worth requirement in the board's directive would prevent any hydropower company from launching an IPO and would also hinder investment mobilization.
"If this is implemented, no hydropower project will be able to go for a public issue. This will affect the construction of hydropower itself," he said.
He alleged that the directive was prepared with the intention of devastating the hydropower sector. He suggested that SEBON should move forward by informing the general public about this issue.