NRNs urged to open account with 100,000 in Nepal

Finance Minister Janardan Sharma has urged Nepali expats to open dollar accounts in Nepali banks and invest in the home land.

Speaking at a virtual interaction organised by the Non-Resident Nepali Association (NRNA), the minister said that opening dollar accounts in the Nepali banks by NRNs will help the country’s economy. “There will be no shortage of liquidity, if 100,000 NRNs open bank accounts in Nepal with 10,000 dollars,” he said, adding that the government has enough foreign currency reserve to buy goods and services for 6.7 months. “According to a report published by the Nepal Rastra Bank (NRB) only yesterday, we have $9.58 billion.”

“As the price of petroleum products has increased, millions of dollars have to be sent out from the country to buy fuel,” the minister said, adding that the proper policy process for the dollar account has been prepared to benefit NRNs.

Likewise, the minister also said that discussions are underway on providing free visas to tourists coming to Nepal, which will make it easier for NRNs as well. He also informed the diaspora that the government is planning to formulate a policy to allocate certain percentage of primary issue.

On the occasion, president of NRNA Kul Acharya said that opening dollar accounts is also a means of connecting NRNs with Nepal. He also thanked the government for amending the policy to make it easier for Nepalis living abroad to open foreign currency accounts in Nepal.

Currently, the banks are offering one percentage interest rate more to the NRNs, if they open a remittance account in Nepal.

Monetary Policy quarterly review gives continuity to CD ratio provision

The central bank has stressed on policy stability in the first quarterly review of the Monetary Policy 2021-22.

Releasing the review report today, the central bank has kept the cash reserve ratio (CRR), statutory liquidity ration (SLR) and widely critisised 90 per cent cap on credit to deposit (CD) ratio unchanged. The CD ratio has been blamed for current credit crunch. The bankers were asking the central bank and finance minister to revert to the earlier system of CCD ratio. The central bank, through Monetary Policy for the current fiscal year 2021-22, has scrapped the provision of credit to core capital plus deposit (CCD) ratio and mandated CD ration to be kept at 90 per cent. Most of the commercial banks have CD ratio over 90 per cent, restricting them to further lend. But the review has asked the banks to prepare a plan to contain CD ratio within 90 per cent by the end of this fiscal year, and submit it to the central bank.

Nepal Rastra Bank (NRB) has, however, tried to tighten the imports, which has seen whopping growth since last couple of months as the Covid-19 infection has been weak. The alarmingly rising imports has eaten up the foreign exchange (Forex) reserve as it has been depleting fast since last couple of months.

In a bid to address the declining forex reserves, the central bank has adopted different measures to discourage imports like making cash margin mandatory when opening LC, limit import of silver and simplify the process of bringing in deposits from Non Resident Nepalis (NRNs), reads the review.

Likewise, the central bank has also introduced a provision whereby commercial banks can issue collateral for loans in foreign currency for commercial agriculture, manufacturing industries, tourism and projects.

Projecting the pressure on external sector stability to continue, as the demand for credit is increasing due to economic recovery process and a large portion of such credit is being spent on import payments at a time when remittance inflow is also not decreasing, the central bank has tried to stop the forex reserve depletion.

Despite a huge pressure to lift cap from margin-type lending, the central bank has not reviewed 40 million and 12 million cap. The fall in share market has been attributed to the central bank's policy to put cap of Rs 40 million (for one financial institution) and Rs 12 million (from the overall financial system) in margin type lending. The provision was also brought in the Monetary Policy for the current fiscal year 2021-22. The share investors have been asking the central bank to revert the decision. However, the central bank, in the review, said that the provision will help financial sector stability and is necessary as the margin type loan has been projected to create bubble in stock market.

Likewise, the central bank has also projected that expenditure on local elections in the current fiscal year will further expand the demand for credit and put pressure on prices. It has also projected the economy to recover wisely citing that the impact of Covid-19 has been gradually diminishing, the availability of vaccines has increased, the number of people going for foreign employment has started increasing, foreign tourist arrivals have increased and that the export of electricity has started.

Government to have 5 per cent share in Rs 10 billion NRNA Investment Fund

 The government has promised to join hands with the Non-Resident Nepalis (NRNs) in setting up Rs 10 billion infrastructure fund.

In a meeting at the Finance Ministry today, the government announced its plan to invest five per cent in the fund according to its earlier agreement. On the occasion, finance minister Bishnu Prasad Poudel asked the NRNs to complete the registration process within a week. He also assured to provide necessary assistance, including additional financial support, so that the fund can be brought into operation immediately. 

The Non-Resident Nepali Association (NRNA) has been pushing the idea of setting up of a fund of Rs 10 billion to invest in the infrastructure sector. The Nepali diaspora has also started process of registering a separate company in Nepal for the purpose.

On the occasion, president of the NRNA Kumar Pant said that the process of registration of the company is underway. “The fund will start operating after the registration,” he said, adding said the NRNA will have 10 per cent share in the company and individual Nepalis living abroad will have 85 per cent. “The public offering will be floated for investment by NRNs.”

The NRNsA has started getting proposals for the investment sectors, Pant added.

The idea of investment fund was, though not the new one, the immediate past president (IPP) Bhawan Bhatta has pushed the process of registering the fund, and incumbent president Pant is completing the process.

The meeting was attended by minister for Industry, Commerce and Supplies Lekhraj Bhatt, finance secretary Shishir Kumar Dhungana, revenue secretary Ram Sharan Pudasaini, central bank governor Maha Prasad Adhikari, economic adviser to the finance minister Prakash Kumar Shrestha, chief executive officer (CEO) of the Investment Board-Nepal (IBN) Sushil Bhatt and others.

Central bank aims at easing loanable fund crunch through Monetary Policy

With focus on addressing loanable funds crunch and credit growth in priority sector, the central bank has brought Monetary Policy for the fiscal year 2019-20, using all the possible monetary instruments.
Released by central bank governor Dr Chiranjibi Nepal today, the Monetary Policy includes a slew of measures to ease the existing shortage of loanable funds at banks and financial institutions (BFIs), lower interest rates and borrowing costs for private sector, though the private sector doubts the implementation of the policy and reduction of interest rates.
Through the Monetary Policy, the Nepal Rastra Bank (NRB) has lowered the general refinance rate to three per cent from current four per cent as part of the efforts to make loans cheaper for priority sectors. “With the general refinance funds to BFIs at 4 per cent, borrowers in priority sectors like manufacturing, tourism and energy will not be charged more than 7 per cent interest rate,” the governor said, adding that the central bank has but barred BFIs from levying more than 7 per cent interest rate to SMEs borrowers for such loans, compared to 10 per cent being levied at present.
The central bank – to address the liquidity issue – has also said that it will introduce provision to allow commercial banks to borrow in convertible currency from foreign institutions, including pension funds and hedge funds. The central bank has also allowed BFIs to collect fixed deposits in foreign currency from organisational foreign depositors and Non-Resident Nepalis (NRNs). However, such deposits should have maturity period of at least two years, and BFIs can disburse cent per cent of such deposits as loans in Nepali currency, the Monetary Policy reads, adding that the move of widening of the sources for external borrowings by the BFIs is expected to ease the crunch of loanble fund. “The new measures will also help lower interest rates apart from addressing the shortage of loanable funds.”
The Monetary Policy has reduced the refinance rate, tightened calculation of the interest rates spread formula – according to the Financial Sector Development Strategy (2016-17 to 2020-21) that envisions bringing the spread rate down to 4.4 per cent by fiscal year 2020-21 – and lowered the bank rate to help make borrowing cheaper, though the private sector is not very much excited about the reduction of interest rates as the central bank move will , according to them, not help reduce the interest rate.
The central bank has also barred BFIs from adding more than two per cent interest premium on their base rate while fixing the lending rate on loans up to Rs 1.5 million disbursed in agriculture, entrepreneurship and business promotion sectors. Moreover, the central bank has barred BFIs from taking any type of service charge from borrowers on such loans. More importantly, the central bank has also made it mandatory for BFIs to approve such loan demand within seven days of the submission of application from borrowers. The BFIs have now been barred from charging additional fees from customers while making transactions through Point of Sales (PoS) machines.
“The measures prescribed by the Monetary Policy is not adequate for making borrowing easier and cheaper,” the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said, adding that managing liquidity more efficiently and maintaining interest rate stability is key to private sector borrowing that can fuel economic growth.
The Monetary Policy has also made it mandatory for the commercial banks to float debentures, corporate bonds equivalent to 25 per cent of their paid-up capital by the end of fiscal year. The central bank – through the Monetary Policy – also claimed to introduce necessary mechanism to ensure the funds raised through corporate bonds will be used to disburse loans. The move, according to the central bank, is expected to diversify the source of liquidity for banks that rely largely on deposits to disburse loans. “The requirement of debentures, which tend to be of long-term nature will help address the loanable funds shortage,” the central bank adds. The mismatch in the assets and liabilities – as banks used to provide long-term loans from short-term deposits – has been blamed for shortage of loanable fund currently, leading banks to engage in an interest rate war that has fuelled interest rates.
Thus, the Monetary Policy has also tightened the spread rate and effectively implementing the interest rate corridor to address the problem of interest rate volatility.
Similarly, the central bank has projected that money supply growth to be limited to 18 per cent and private sector credit growth to 21 per cent in the current fiscal year. In the last fiscal year 2018-19, the central bank had projected 20 per cent private sector credit growth. “The Monetary Policy has also projected domestic credit growth at 24 per cent for the current fiscal year – against 22.5 per cent estimated in the last fiscal year – to achieve government’s ambitious growth target of 8.5 per cent for the fiscal year 2019-20,” the policy reads.
Speaking at the launching central bank governor Dr Chiranjibi Nepal said the expansion of credit to both government and the private sector could boost the availability of funds to invest in productive sectors. “The government will need to invest Rs 450 billion while the private sector needs to inject Rs 1.25 trillion in order to achieve the government’s targeted economic growth of 8.5 per cent,” he said, adding that the policy has made it mandatory for micro-finance firms to disburse one-third of their total loan in the agriculture sector to raise credit flow in the agriculture industry. “The NRB will fix the upper limit of Debt Service to Gross Income ratio in non-business loans including individual loans, home loans and hire-purchase loans being issued by BFIs.”
The NRB has also made PAN mandatory for seeking loans of above Rs 5 million from BFIs, from current above Rs 10 million, the policy reads, adding that the central bank is also introducing policies to facilitate citizens to keep gold in banks as deposits.
Similarly, the Monetary Policy 2019-20 has – in line with fiscal policy – targeted keeping inflation within six per cent and maintaining foreign exchange reserve (forex reserve) to sustain the prospective import of goods and services for seven months.
This time, however, the central bank has not revised the cash reserve ratio (CRR) and statutory liquidity ratio (SLR) for BFIs, though they are also key monetary tools to ease the banks’ liquidity position, though the bankers have suggested the central bank to revise the CRR downwards. Likewise, the policy is also silent when it comes to revising the threshold in the credit to core capital-cum-deposit (CCD) ratio, which bankers have been pressuring the central bank to address through the monetary policy.
Currently, the CCD ratio imposed for banks and financial institutions stands at 80 per cent, which means a bank cannot extend more than 80 per cent of its deposit and core capital as loans.

Highlights:
• Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR) left unchanged
• Average annual inflation to be contained at 6 percent
• Banks required to issue debentures equivalent to 25 per cent of paid-up capital
• Policy to be made for BFIs to open branches abroad
• Maximum limit for debt service to gross income ratio to be fixed for home loans, hire purchase
• Policy to be made for foreign currency payments for social media ads
• BFIs barred from selling bankassurance
• Gold can be parked in banks as deposits

Dhakal, Bajgain deny report on unlawful deposits in foreign land

At least four individuals – out of some 55 Nepalis, who are said to be investing in offshore companies and bringing in foreign direct investment (FDI) into Nepal from tax havens – have defended themselves by saying that they have not any unlawful activities.
Chairman of IME Group of Companies Chandra Prasad Dhakal – organising a press meet – defended that the report of Centre for Investigative Journalism-Nepal (CIJ-Nepal) is misleading as he has been running the remittance business according to the law of the land. 
He owns International Money Express (IME) UK Ltd – a British company – which according to him has been under operations after the central bank's approval to open the office in London to bring the remittance into Nepal through banking channel. “It was established to bring in remittance from the UK and other EU countries,” he said.
"I have opened a company in the UK, complying with all applicable laws of the country," Dhakal said, adding that he had taken the approval of central bank to open a company in 2002 in order to bring remittances to Nepal from the UK. "There was no violation of any law of the country."
If opening a company to bring remittances through formal channels is a crime, I have nothing to say, he added. "Otherwise, bringing up my name suddenly and lumping it with others including those with deposits in Swiss banks is unfair.
The report reads that Dhakal purchased the Sunbrid Compter Consultant Ltd, which was later rechristened IME UK Ltd.
"We have neither established companies in tax haven countries nor have we brought foreign direct investment from such countries," Dhakal said, adding that neither he nor his companies has any account in the Swiss bank. "IME UK Ltd was established after obtaining approval from Nepal Rastra Bank."
Likewise, Rajendra Bajgain – a central committee member of the Nepali Congress and a tourism entrepreneur – whose name has appeared in the list of Nepalis with investments abroad has also taken exception to allegations made against him. He is also alleged that he had brought foreign direct investment (FDI) from the British Virgin Islands.
Bajgain said that he has not flouted Nepali laws to bring FDI into the country. But the report of CIJ-Nepal released yesterday claimed that Bajgain channelised Rs 1.755 billion into the country from the British Virgin Islands thorough Silver Heritage Group, a Hong Kong-based company.
Likewise, sugar mill operator Shashikanta Agrawal and businessman Arun Kumar Chaudhary have also objected to the CIJ-Nepal report and denied that they have violated any law of the land.
Dismissing the report, all four of them said that have been unfairly targeted by media reports even though they have not done anything illegal. Denying that they have committed any wrongdoing, they both said the CIJ report has puts them in a negative light and tarnished their image. The report, 'Nepal Leaks 2019: Illegal Wealth Watch', released by the CIJ-Nepal yesterday should not have contained such flaws, they said, though CIJ claims that the report was the outcome of year-long investigations. However, most of the names Nepal Leaks claims to have disclosed also featured in the 'Panama Papers Leak' two years ago in 2017.
All Nepalis making investments in foreign land should not be put into a single basket as some of them may have secured permits from the central bank, while others may have become investors while living abroad, and some may be NRNs.

Shesh Ghale re-elected as NRNA president

Shesh Ghale has been today elected as the president of Non-Resident Nepalese Association (NRNA) with an overwhelming majority for the second term.
He secured 867 votes – out of the total 1,089 votes – while his contender TB Karki garnered just 226 votes.
Likewise, Bhawan Bhatta has been elected as the vice president securing 538 votes. His contender Kumar Pandey secured 513 votes. Dr Badri KC with 555 votes has been elected as the general secretary and Hitmat Thapa with 264 votes as treasurer of the NRNA for next two-year term.
The reelected president of the NRNA Ghale is constructing a five-star hotel in Kathmandu. Prime Minister Sushil Koirala had laid foundation stone of the 17-storey five-star Sheraton Kathmandu Hotel last October. The hotel is being built with an investment of Rs 8 billion. The hotel, which is expected to come into operation in February 2018, is being built by MIT Group Holdings Nepal, a member of the Ghale Group of Companies, which has diverse businesses in Australia and other countries too.
Ghale has also been appointed Nepal's special envoy for reconstruction in the aftermath of the devastating earthquakes of April 25 that floored down thousands of houses, infrastructures and heritage sites, apartfrom loss of lives.

NRNs failed Nepal in the time of crisis

The Non-Resident Nepalis (NRNs) from 71 countries, who have gathered in Kathmandu for 7th Global Conference, have committed to work for reconstruction.
It is praiseworthy. However, while they are preparing for global conference, Nepal is under India’s ‘unofficial blockade’. The lives of Nepalis have been hit hard by the shortage of essential goods, including petroleum products, and even medicine in some parts of the country. In the current situation of humanitarian crisis, the NRNs have failed their motherland, in their own words.
“We discussed Nepal’s current issues in the meeting of International Coordination Council (ICC),” said Non-Resident Nepalis Association (NRNA) vice president Bhawan Bhatta.
The NRNs, who have resources and network across the globe, apart from their formal institution in 71 countries, have failed to prove that they really care for their motherland. They have been repeatedly claiming that the country can use their expertise and network for the benefit of Nepal, if the government award them citizenship. The new constitution of the country – that has become the key reason for the current unofficial blockade by India – has given NRNs the right to get special citizenship. The NRNs have welcomed the provision, but failed to help the country at this critical juncture.
However, Bhatta said that the NRNs raised the issue of current crisis in the ICC meeting. “Majority of the NRNs feel that they have to internationalise the current crisis,” he said, adding that they had also planned a symbolic programme in all the 71 countries at the same time and on the same date. “But the ICC meeting did not endorse the agenda.”
However, Japan National Coordination Council (NCC) – in Bhatta's leadership – organised a symbolic programme in Tokyo.
After Nepal promulgated new constitution with 90 per cent majority on September 20, India has stopped movement of cargo trucks at its border points, blaming the protests Tarai-Madhesh districts. Nepal is not only landlocked, but also India-locked as the country is surrounded by India in the east, west and south. The behaviour of New Delhi with a small country like Nepal has not only affected lives of Nepalis but also left bordering Indian markets deserted.
Nepal Oil Corporation (NOC) – the state-owned oil monopoly – has been rationing petroleum products to manage the situation. Because of the Indian blockade and shortage of petroleum products, the country is going to lose more than what it lost from the devastating earthquake in April and May. Schools and industries have been shut down, and long queues have been formed at handful of pumps distributing fuel. The blockade has dealt severe blow on the already shattered Nepali economy.
Though NRNA has been involved in various activities under its charity programme, including the plan to rebuild 1,000 houses for earthquake victims within two years, it has to come up to help the country in situation like this.
The NRNA General Assembly and Global Conference that is being held in Kathmandu from October 14 to 17 is going to see around 1,500 delegates from various countries. The conference is also going to elect a new executive committee for a two-year term. But the conference will also have to come up with clear and concrete plans, apart from reconstruction and rebuilding, to help their motherland at this critical time. Because its their turn to help Nepal.

Five years down the line KKH Tunnel Road still a pipe dream

Nepal Government permitted Purbadhar Bikas Company Ltd (PBCL) to construct Kathmandu-Kulekhani-Hetauda (KKH) tunnel road in 2012. The private infrastructure company planned to complete the road in four years. But the road project has not been able to move forward.
Ministry of Physical Planning and Transport had permitted PBCL to start the mega project – the first project under the Build-Own-Operate-and Transfer (BOOT) Act in Nepal – that was supposed to be operational by the end of 2016.
The project that could have become the successful PPP was and still is commercially viable as it would save travel time and cost. Currently, the distance between Kathmandu – the Nepalese capital – and Hetauda through the existing Tribhuwan Highway is 133-km and through Prithvi Highway, it is 227-km with around a six-hour driving time. But the KKH tunnel road is expected to shorten the travel time to only one hour and distance to 58-km.
The KKH tunnel road could also bring socio-economic transformation as it would not only connect people to the market but also bring changes in their lifestyle. Likewise, the express way would also save around Rs 15 billion annually on fuel and spare parts.
The Asian Highway standard 58-km tunnel road with three tunnels is planned with a four-lane expressway that would not only save time and fuel but also create new economic hubs at the sides of roads, besides helping shift population pressure from the Kathmandu valley.
The PBCL was planning to mobilise funds from four parties — private sector, locals, government, Non Resident Nepalis (NRNs) and financial institution — with each party having 25 percent stake. It has also prepared Detailed Project Report and got good support from the government as the concessioner. The government has awarded the company the project licence for 30 year with five year extendable option. It also has the option to change the toll rate on the request of licence holder. The government has also agreed not to charge any royalty from the project during the construction period. It has promised to help acquire private land, guaranteed not to nationalise the land, buildings, investments and infrastructure of the project.
Initially, the project was estimated to cost Rs 20 billion but the delay in decision by both the parties has increased the cost to Rs 34.5 billion from the earlier estimation.
The tunnel road that has a payback period of eight to 12 years, as users will have to pay toll fee, would be transferred to the government in 30 years. The project with a commercial viability, reasonable return, and guaranteed traffic failed to kick start due to government's emotional decision to award to only one company that was pushing the project. The government did not bother to call for competitive bidding and awarded the contract to the one that was lobbying for it.

Sanima Mai Hydro stocks start trading

Sanima Mai Hydropower has debuted its stock trading at Rs 324 for an unit today.

The fifth hydropower company had listed its 10,530,000 units of stocks at the secondary market a week ago. However, the market saw only 10 units of Sanima Mai Hydro's stocks trading today. The hydel project promoted by the NRNs has a book value of Rs 108 and according to the rule, the debut price could be three times the book value.

The five hydropower companies have listed a total of 55,075,622 units of stocks at Rs 100 per unit at the Nepal Stock Exchange (Nepse).

The hydropower sub group has gained 56.17 points, though the overall Nepse index could not gain and lost 1.56 points to close the market at 783.91 points today.

The Nepse has lost but it has witnessed trading of some 125 companies with a turnover of Rs 350.45 million as 807,040 units of stocks.

Secretary asks immigration officials to behave, help promote tourism

The immigration officials must treat tourists in a good manner as they create the first and last impression of the country on the visitors, said secretary at the Office of the Prime Minister Krishna Hari Baskota, during the surprise inspection of the Immigration office here today.

Tourism industry has a huge potential for growth in Nepal, he said, adding that the officials must be aware of their duty in promoting tourism.

The Immigration Office has informed that it has distributed 1,754 non-tourist visa, 60 journalists visa, and 1,055 visa for marital reason and some 2,254 were granted visa for visiting Nepal to meet their relatives in the 11 months – from January to November – of 2013.

Though the Citizen Charter in the Immigration gives rights to students to claim compensation, if their visa process is delayed – no one has claimed till date, Baskota added. "Some 1,699 received students' visa, whereas 2,073 received business visa, 27 resident visa, and 112 Non-Resident Nepalis have also got visa in the 11 months of 2013.

The immigration has mobilised Rs 183.31 million from the issuance of visa in the period. Likewise, the immigration has earned Rs 152.79 million from trekking permit to visit restricted area of the country, informed director general of the Immigration Saradchandra Poudel, on the occasion.

NRNA demands tax exemption

Non Resident Nepalis have asked the government to exempt tax to their association as other philanthropic organisations.

The Non-Resident Nepali Association (NRNA) should be registered as an entity with income tax exemption like other social organisations, demanded NRNA president Shesh Ghale in a meeting with finance minister Shankar Prasad Koirala here today.

The NRNA will be encouraged for social works, he said, demanding the government to sign double tax avoidance agreement (DTAA) and recognise NRNs as the investors and largest remittance senders through authorised channels. "Like in other countries, Nepal should also start Special Economic Zones (SEZs) to encourage foreign investment."

The association has also formed a Relief Trust for migrant workers, who are injured, and stranded in Gulf and Malaysia. "The Trust has already Rs 10 million fund," Ghale, one of the richest NRN Australians, added.

On the occasion, the minister asked the NRNA to increase investment in infrastructure development and hydropower. "The government is ready to create investment-friendly environment," he said, adding that the government had registered the NRNA also to encourage them to bring in investment.

The elected government will also continue to bring in reforms to reverse the import-based economy to production-based, Koirala said. "There is also a need to increase investment in rural areas."

NCM Merchant Banking allots Sanima Mai Hydro's public shares

NCM Merchant Banking today allotted primary shares of Sanima Mai Hydropower.

The small investors were allotted some 3.65 per cent, whereas the big investors received some 2.97 per cent of their request to subscribe.

The investors, who applied for up to 240 units of shares were allotted 10 units of shares through lottery as they would get less than 10 units under the proportionate system.

Sanima Mai Hydro had floated 2.11 million units of primary shares to the public at a face value of Rs 100 per unit on September 20-24.

Some 66,333 applicants – except 113 staff and three Mutual Funds – applied for 60,260,968 units of shares, said the issue manager NCM Merchant Banking that has closed the issue on September 24 after it was oversubscribed by around 31 times.

Of the total 66,333 applications, only 65,752 applications were valid, including 48,559 application from the small investors, the issue manager said, adding that the investors will get their cash refund after Tihar festival.

Sanima Mai will be the fifth hydropower company to be listed in the Nepal Stock Exchange (Nepse) that already has four hydropower companies –National Hydropower, Butwal Power, Arun Valley Hydropower and Chilime Hydropower – under hydropower sub group.

The 22-MW hydropower project's IPO that was rated ‘[ICRANP] IPO Grade 3’ by Icra Nepal was already been allotted Rs 105 million worth shares to the locals of the project affected areas in nine VDCs of Ilam districts in July.

Following the current public issue, the hydropower will have Rs 1.05 billion paid up capital.
Promoted by Non-Resident Nepalis (NRNs) Sanima Mai is developing two hydropower projects with an aggregate capacity of 29 MW, including A 22-MW Phase I project that is expected to commission in July 2014 and 7-MW Phase II project that is expected to commission in July 2015.

The promoters have 70 per cent, locals of Ilam 10 per cent and 20 per cent shares now belong to the general public after the public issue.

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