SEBON's proposed directive will discourage private sector, warns IPPAN's Karki
The proposed directive by the Securities Board of Nepal (SEBON) will discourage the private sector from investing in electricity production, according to Ganesh Karki, former president of IPPAN. He claimed that provisions related to net worth and requiring an IPO only after electricity generation will deter private investment. He stressed that the draft must be discussed and finalized.
Ganesh Karki, former president of the Independent Power Producers' Association Nepal (IPPAN), has said that the proposed directive by the Securities Board of Nepal (SEBON) will discourage the private sector from producing electricity. He indicated that provisions related to net worth and the requirement to launch an IPO only after electricity generation send such a signal.
Karki said that since the directive is currently only a draft, it must be thoroughly discussed before being finalized. "This is now a draft. A draft can be introduced. It will be finalized after discussions," he said. He warned that if the draft is passed, it will have a major impact on the hydropower sector.
According to Karki, the current draft does not align with the government's targets. He emphasized the need for consensus among government agencies regarding energy production targets. He said, "There must be coordination between the government's target and the draft."
Key points in the draft:
- Strict provisions related to net worth
- Provision allowing IPO only after electricity generation
- Potential impact of discouraging the private sector
Karki said these provisions could reduce the confidence of private investors and affect long-term energy projects.