Kathmandu. The Independent Power Producers’ Association (IPPAN) has requested the government to provideshares to the locals directly affected by the hydropower project at the price of (per and 100 ). IPPAN made this request through a press release. 

Drawing attention to the fact that some promoters have been discussing the option of issuing shares at a premium price for the local affected people after the process of issuing ordinary shares of some hydropower projects process due to the process of issue of due to {{} regulatory {{{}}

The IPPAN has urged the member companies to allocate 10 percent of the shares to the locals as per Rule 9 (4) of the Securities Registration and Issue of Securities and Issue Regulations, 2073 BS.

According to IPPAN, the hydropower project is not just a means of investment but a development campaign based on trust, collaboration and partnership with the local community. 

IPPAN argues that the shares have been arranged to provide land during the construction of the project, to bear the environmental and social impacts and to involve the local community who suffer inconveniences during the construction period.

If the shares allocated to the locals are issued at a premium price, the access of the community will be limited, the sense of ownership towards the project will be weakened and the relationship between the project and may be negatively affected, IPPAN said.IPPAN believes that providing the shares at the price of will make the locals the real partners of the project, reduce social disputes and obstacles and create a conducive environment for the timely completion of the project.

IPPAN has urged the Government of Nepal, regulatory bodies and promoters to maintain the policy of allotting shares at Rs 100 per to the locals keeping in mind the interest of the local affected people, long-term sustainability of hydropower projects and the relationship between the private sector and community.The committee has also drawn the attention of the government and bodies concerned to make the regulatory process related to the issuance of ordinary shares simple, transparent and time-bound and to resolve the problems faced by the hydropower projects due to the delay.