Ncell Plans 42 Folds Capital Increment

June 1: Ncell, a telecommunication service provider, has submitted a proposal in Department of Industries (DOI) for increasing its approved capital by 37 times. Ncell has submitted the proposal in DOI for legitimate approval after increasing its capital and capacity internally. According to the proposal, Ncell will increase its total capital to Rs 76.60 billion. Earlier, Ncell has taken approval for Rs 2.05 capital from the department. “Based on the current transaction, the company has already increased proposed capital and capacity. It has submitted the proposal only to fulfil legal procedure,” says Maheshwor Naupane, General Director of DOI.

Ncell, being a company under foreign direct investment (FDI), can increases its capital only after taking mandatory pre-approval from DOI. However, record of the company registrar office shows of Rs 10 billion capital increment by Ncell without taking prior approval.  Consequently, DOI had summoned Ncell twice demanding clarification. According to the DOI, after a long period of avoidance, Ncell has directly submitted capital increment plan.

 “The Ncell proposal has been discussed in the meeting of Industrial Promotion Board (IPB) on Sunday which is chaired by Industry Minister, however no conclusion was derived.” informs Naupane who is also the member- secretary of IPB. The meeting has formed seven members’ committee under chairmanship of Surya Prasad Silwal Secretary of DOI in order to study the proposal.  The committee will study company’s plan, requirements, tasks performed without approval of DOI and submit the necessary report to the board.

“Apparently Ncell has been adding capital from its profit over the years. The company is likely being ignoring DOI while increasing its capital without approval. The board will take necessary decision stepping within the authority given by the law,” Naupane added. He informs that there is a provision in the law for dissolution of the company in such circumstances but it might not be applicable in case of  Ncell.