Industrial Promotion Board approves up gradation of hydel projects

The Industrial Promotion Board (IPB) has approved up gradation and capital increment of some hydropower projects with conditions.

The board meeting today also directed the concerned authorities to form committees for detailed studies before forming a policy on cooperatives, and Foreign Investment and Technology Transfer, besides the gutkha industry.

"The board approved up gradation and capital increment of Kabeli 'A' Hydropower Project (37.5 MW) — promoted by Kabeli Energy, a subsidiary of Butwal Power Company (BPC) that is estimated to cost $92 million — 120-MW Lekhu – a developed by Green Ventures that has committed Rs 16.18 billion investment – and 50-MW Balefi Hydropower – promoted by Balefi Jalbidhyut Company and estimated to cost Rs 5.88 billion apart from approving Himal Hydro's request to invite foreign investment and loan agreement of Sino-Hydro from China Exim Bank," according to a source.The board also approved the capacity upgradation request of Bottlers Nepal Tarai Ltd. The three hydropower – Kabeli, Lekhu and Balefi – and Chitwan-based plant of Bottlers Nepal Tarai have pledged Rs 31 billion investments. Bottlers’ Nepal had asked permission from the Department of Industry a month ago for upgrading the plant’s capacity 203,000 kl per day from the current 8,850 kl per day capacity. The company will pump in around Rs 2.70 billion in the plant. Bottlers Nepal has invested Rs 55 million in its Chitwan-based plant till now.

The meeting chaired by Industry Minister Shanker Prashad Koirala also asked the concerned departments to form committees before bringing a policy on cooperatives that has lately been in the news for all the wrong reasons, gutkha industry that has been banned in India lately and is waiting for a policy to enter Nepal, and Foreign Direct Investment (FDI) and Technology Transfer Act to promote foreign direct investment in the country, the source said, adding that the board has been working on to create an investment friendly policy that will help boost manufacturing growth in the country.

The country has been witnessing a slowdown in manufacturing growth due to continued power shortage, labour problems and strikes, but the board's decision today will help generate electricity for industries, according to the source, who expects such policy clarity will encourage investors.