Commercial banks not capable of investing in big hydel projects: NRB Gov

Nepal Rastra Bank Governor Deependra Bahadur Kshetry has said that private sector banks in Nepal are not equipped with adequate capital to fund big hydropower projects.

While speaking at the Fourth International Hydro Power Convention in the capital, he said, "Presently, the total deposit in commercial banks in our market stands at Rs. 547 billion. That volume of amount is not sufficient to invest in big hydropower projects."

As per the Priority Sector Lending program, commercial banks are providing loans for investors who invest in small hydropower projects with generation capacities of up to 50 kilowatts.

Uttar Kumar Shrestha, executive director of NEA, came up with the view that the government should provide its guarantee for the mobilization of investment in big projects through energy bonds and debentures.

Sandip Shah, president of the Independent Power Producers´ Association Nepal, said that the government should exempt all types of taxes for investments in the hydropower sector for at least the next 10 years.

Indian Ambassador to Nepal Rakesh Sood remarked that strong commitment towards hydropower development from the political leadership is must. nepalnews.com Apr 27 09

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