Independent Power Producers Demand Incentives for Merger

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Independent Power Producers Demand Incentives for Merger

July 20: Energy producers of the private sector have demanded necessary policy that encourages the production, transmission and distribution of electricity in case the independent power producers want to opt for merger. They have demanded exemption in royalty for merger.

The Electricity Regulatory Commission has already unveiled the draft of the Directive on Merger, Acquisition, Purchase and Transfer of Authorised Person or Projects 2077.

The commission is preparing to finalize the draft. In the mean time, energy producers have demanded favourable policy to go for merger.

The draft has a provision of merger between authorised projects that are involved in production, transmission and distribution of electricity. There is also a provision for one project to acquire, purchase or transfer the shares of other projects.

Promoters of the private companies have taken the proposal of merger positively. The promoters of private energy sector have been demanding facilities similar to those provided by the central bank to encourage the merger of BFIs.  

Vice President of Independent Power Producers of Nepal (IPPAN) Kumar Pandey says it is important to provide incentives for merger.

“Merger of hydropower project itself is a positive step. However, it is important to provide facilities for the projects that opt for merger. This issue is missing in the draft,” said Pandey.

 

 

 

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