IPPAN Urges Hydropower Companies to Issue Local Shares at Face Value of NPR 100
IPPAN has called on hydropower companies to issue the 10% share allocation reserved for project-affected local residents at the face value of NPR 100, arguing that premium pricing would limit local participation.
IPPAN Urges Hydropower Companies to Issue Local Shares at Face Value of NPR 100
The Independent Power Producers' Association, Nepal (IPPAN) has urged hydropower companies to issue the 10% share allocation reserved for project-affected local communities at the face value of NPR 100 per share.
In a statement issued on Sunday, IPPAN President Mohan Kumar Dangi said that, in accordance with securities issuance regulations, shares allocated to local residents should be offered at face value. The statement comes amid reports that some project developers are considering issuing local shares at a premium price.
According to IPPAN, local communities contribute land and bear the environmental and social impacts of hydropower projects, making their participation in project ownership a key objective. Issuing shares at a premium price could reduce affordability and weaken the sense of ownership among affected residents.
IPPAN also expressed concern over delays in the share issuance process and urged the government and regulatory authorities to make the process simpler, more transparent, and time-bound. The association further requested its member companies to adopt a policy of offering local shares at face value.