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Finally majority of NHPC BoD unite; AGM expected by Poush

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Registered: Jul 2013
Posts: 986
ciaa investigation good. hope nb grp pays back 40 crore it misused after right share.
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Registered: Apr 2014
Posts: 63
Dear basanta, see below line in in above statement.

However, a leading hydropower investor and expert Gyanendra Lal Pradhan says that NHPC may not be in a position to offer any dividend for the next few years. He was citing the recent move of the Commission for the Investigation of Abuse of Authority (CIAA) to initiate action against NHPC over the Lower Indrawoti project for the irregularities there.
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Registered: Jul 2014
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10% up sure 2day :) :) :) :) :) :)
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Registered: Jul 2013
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yesko share price ke hunchha aja?
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Registered: Nov 2013
Posts: 142
Finally majority of NHPC BoD unite; AGM expected by Poush
ShareSansar, September 23:

In what may be dubbed as a significant step toward resolving the festering crisis in National Hydropower Company Limited (NHPC), a majority of the members of the Board of Directors of the public company have finally come together.

Chairman of the company Kumar Pandey explains how.

“Out of the total seven elected directors approved by the last AGM and a financial director nominated by the elected Directors, three have stepped down, and we have added one director,” says Pandey. “Out of the six existing members of NHPC Board of Directors, five are with us.”

According to him, the five BoD members who have finally come together are Kumar Pandey himself, Prakash Rajaure, Bishweshor Subedi, Ram Tamang and Shiva Ram Pradhan.

The sixth director Dipak Karki complains that he feels by-passed by the other BoD members.

Nevertheless, the fact that the majority of BoD members stand united is a big achievement in itself, and instill hope that this fully public company can overcome the crisis in days ahead.

NHPC Chairman Pandey further informed that they have begun the process of conducting the audit for the last fiscal year, and are planning to hold the 16th and 17th Annual General Meeting by Poush.

NHPC had held its 14th and 15th AGM around 20 months ago.

No dividend this time around, may be from next year

However, Pandey made it clear that the AGM this time around will not be able to offer any dividend owing to the festering scam in Lower Sunkoshi hydropower project, the other project of the company.

Around Rs 40 crore of equity collected through the rights issue of NHPC for this project was reportedly swindled by NB Group soon after the rights issue. And the loan issued for the project by a group of banks led by Nabil stands at around Rs 25 crore.

Though some directors as well as shareholders ShareSansar talked to over the recent weeks doubt if the loan amount has also been properly invested in the project, Pandey said that it has been invested properly.

However, a leading hydropower investor and expert Gyanendra Lal Pradhan says that NHPC may not be in a position to offer any dividend for the next few years. He was citing the recent move of the Commission for the Investigation of Abuse of Authority (CIAA) to initiate action against NHPC over the Lower Indrawoti project for the irregularities there.

But, Pandey insists that they are expecting to offer some dividend from the next fiscal year 2072/73.

“We will repay most of the loan by this fiscal year alone, and clear the rest by the first or second quarter of the next fiscal year,” Pandey said. “Then a portion of whatever profit we generate from NHPC can be offered as dividend to the shareholders.”

“Even if this project is scrapped, which we don’t think will happen at all, NHPC will be able to pledge dividend from the next fiscal year,” Pandey reiterated.

The good thing about NHPC is that it has already cleared most of its loan for its 7.5 MW Indrawoti III project. () A large part of the loan for the 4.5 MW Lower Indrawoti project due despite the factionalism largely due to the arrangement to handover the earning from electricity directly to Nabil.

Back in March, shortly after Nepal Stock Exchange Limited (Nepse), on the basis of a court verdict, issued a stern warning to NHPC for failing to renew RTS agreement. The board then, was divided in factionalism among directors.
Though the SEBON was not been able to take a bold stance on the festering issues, and Nepse had even withdrawn the trading suspension of NHPC shares since June last year following the Patan Appellate Court’s decree, the brokers had not been trading the shares.

But the compnay apparently reached some understanding to appoint the RTS. Consequently the trading in the scrip of NHPC resumed after a long hiatus at Nepse, much to the respite of the shareholders.

Grow More Merchant Banker Ltd officials had then informed ShareSansar that they had inked RTS agreement with “the majority group” of the NHPC. The market then responded positively to the development, and the price of scrip increased.

Then toward June end, NHPC scrip witnessed the highest turnover. One of the reasons, according to sources is that the Commerce bench of the Appellate Court Patan ruled in favor of majority directors and management, and said that the Dirctors supported by NB Group, which is primarily responsible for the crisis NHPC, is not bonafide.

The company whose shares traded at as high as Rs. 600 when stock market was surging to an unprecedented level around eight years back, went on a free fall when the company ran into rough weather and could not even publish its financial reports, or hold its regular AGMs for years due to extremely poor and non-transparent corporate governance on the part of NB Group, which was running the company initially.

NB Group had established NHPC in joint venture with Lyse Kraft AS of Norway in 1996. NHPC had commissioned the Indrawati III Hydro Power Project back in 1999.

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