Wednesday, July 3, 2013

Industrial Promotion Board approves foreign investment in Super Madi hydro, capital injection in Bottlers Nepal

The Industrial Promotion Board (IPB) today approved foreign investment in Super Madi Hydropower Project and Bottlers’ Nepal’s proposal to increase Rs 3 billion capital.
The 44MW-Super Madi hydel project – being developed by Himal Hydro and General Construction – is planning to bring investment from Costal Project Ltd India, whereas Bottlers Nepal (Terai) is planning to increase production capacity of its Chitwan-based plant.
The Bottlers Nepal (Terai) – that has a paid up capital of 121-million – will increase its paid up capital to Rs 3.12 billion. It has Bottlers Nepal as its majority shareholder and remaining share is with the public.  
Bottlers’ Nepal (Balaju) – with 76.16 per cent share of Coca Cola Sabco of South Africa, 22 per cent share of Gurkha Brewery and rest with public – has a paid up capital of Rs 195 million. Bottlers’ Nepal (Terai) and Bottlers’ Nepal (Balaju) both are listed companies at the Nepal Stock Exchange. The shares of Bottlers’ Nepal (Balaju) and Bottlers’ Nepal (Terai) are being traded at around Rs 1,680 and Rs 1,320 per unit, respectively.
Coca-Cola was first introduced into Nepal in 1973, when it was imported from India, but local production began in 1979 only, with the establishment of Bottlers Nepal Ltd (BNL). Coca-Cola Sabco acquired bottling rights from Coca-Cola Company for Nepal in 2004.
The 205th board meeting chaired by minister for Industry, and Finance Shankar Prasad Koirala, approved the capital increment of the Coca-Cola as it had sought the permission to increase its paid up capital and expand the production. Coke is also planning to buyback share of Gurkha Brewery, and start production of juices in Nepal.
Bottlers Nepal is the manufacturer of Coca-Cola, Fanta and Sprite in Nepal.
Likewise, Kaski-district based run-of-the-river Super Madi hydro that had sought government’s approval to bring foreign investment, has also been approved to bring foreign investment from Costal Project Ltd India, though the amount has not been mentioned.
According to a press release of Industry Ministry, the total capital of
Super Madi hydro project is Rs 6.35 billion.
Costal Projects India has a majority share holding of 82.21 per cent in Nepal Jalabidyut Prabardhan Tatha Bikas Ltd, which has 78 per cent stake in Himal Hydro – according to the company – that is planning to develop 44MW Super Madi hydel project.

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