Entrepreneurs Demand Increase Funding in Energy Sector

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May 20: Entrepreneurs have demanded increased investment in the energy sector after analyzing insufficient financing in the sector from banks and financial institutions.

Entrepreneurs during a recent interaction organized by Nepal Chamber of Commerce made such claim and demanded the banks to increase their investment in the energy sector of Nepal.

The monetary policy of the country limits banks to invest only 5 percent of their total capital in the energy sector.

According Sailendra Guragain, chairman of Independent Power Producers' Association, Nepal (IPPAN), works of several hydropower plants have been obstructed due to the insufficient funding. This obstruction is hampering the production of almost 400 megawatts of electrical energy.

There are lots of organizations working in the energy sector which have not received financing from banks and are also unable to attract foreign investors, said an expert.  In such situation, the organizations are fearful that the shareholders might withdraw their capital.

Analyzing such scenario, entrepreneurs during the interaction program organized by Nepal Chamber of Commerce requested Energy Minister Barsha Man Pun to analyze the investment situation and amend the monetary policy to encourage banks to raise their investment up to 15 percent in the sector.  

 

 

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