Ganesh Karki, chairman of the Independent Power Producers’ Association Nepal (IPPAN), has raised concerns about the growing demand for free shares in hydropower projects. He said this trend has been increasing recently and is causing problems for project developers.
At a press conference on Wednesday, Karki revealed that several hydropower projects have started receiving requests for free shares.
“Many projects are now facing demands for free shares. Some projects have even experienced vandalism. Who will take responsibility for this, the Prime Minister or someone else?” he questioned.
Bhote Koshi incident
He also said that unrest in the sector has increased after the Bhote Koshi incident. A local youth group, Gen Z demanded 10% of the project’s shares for free. When their demand was not met, they blocked the project, causing a shutdown and losses of over NPR 300 million. Karki criticized the Securities Board of Nepal (SEBON) for not listening to the problems of energy producers.
IPO delays adding to the problem
Delays in launching initial public offerings (IPOs) are making the situation worse. Karki said that many hydropower projects are facing difficulties because they cannot go public on time.
He warned that if these problems are not addressed, energy producers may take legal action or organize protests. “We may need to approach the courts and anti-corruption bodies. We may even have to stage demonstrations,” he said.
