August 29: Minister for Energy, Water Resources, and Irrigation, Shakti Bahadur Basnet, pledged to revitalize the Hydroelectricity Investment and Development Company Limited (HIDCL) to enhance its role in the energy sector's growth.

Established as a public investment firm, HIDCL focuses on raising funds for hydroelectric projects in the country. During a discussion held at his office on Tuesday, Minister Basnet emphasized the need to transform it into a robust financial institution that encourages increased investment.

Minister Basnet emphasized HIDCL's potential collaboration with bilateral and multilateral donor agencies to attract additional investments into the country's energy sector.

The company has already invested more than Rs 27 billion, deploying over Rs 6 billion in capital across 12 projects with a cumulative capacity of 902 megawatts. Furthermore, it has invested Rs 21 billion in 19 projects with a combined power capacity of 1,467 megawatts.

Dinesh Kumar Ghimire, Secretary at the Ministry of Energy, Water Resources, and Irrigation, as well as the Chairperson of HIDCL, echoed the importance of revitalizing the company with fresh plans and vision.

The company recently signed Memoranda of Understanding (MoUs) with four different projects, securing a loan investment of Rs 13 billion. Additionally, the company has been entrusted with arranging funds for the 1,063-megawatt Upper Arun project through domestic resources.

The Nepal Rastra Bank recently urged HIDCL to undergo structural reforms to align with the Banking and Financial Institutions Act. While HIDCL had the provision for loan investments in projects, it faced challenges due to the absence of legal provisions for raising loans.

Arjun Kumar Gautam, Chairperson of HIDCL, acknowledged the company's urgent need for diversification and expansion for investment resources.