Minister for Energy, Water Resources and Irrigation Shakti Bahadur Basnet pledged to mobilize the Hydroelectricity Investment and Development Company Limited (HIDCL) for the development energy sector by further revitalizing it.

The HIDCL was established as a public investment company to mobilize funds for investment in generation, transmission and distribution of hydroelectricity.

In a discussion regarding restructuring the HIDCL in his office on Tuesday, Minister Basnet reaffirmed to revitalize the company as a strong financial institution and promote further investment.

Minister Basnet pointed out the need for the HIDCL to collaborate with the bilateral and multilateral donor agencies and attract more investments in the energy sector in the country.

The HIDCL has already invested over Rs 27 billion so far. The company has invested over Rs 6 billion as own capital in 12 projects having a total of 902-mega watt.

Likewise, over Rs 21 billion has been invested in 19 projects with 1,467 megawatt of power, it was shared.

Similarly, Dinesh Kumar Ghimire, Secretary at the Ministry of Energy, Water Resources and Irrigation and also Chairperson of the HIDCL, spoke of the need to revitalize the company and take it forward with new plans and vision.

The company recently signed MoU with various four projects for loan investment worth Rs 13 billion. The Company has been entrusted with the responsibility to arrange funds for the 1,063 megawatt -Upper Arun project through domestic resources.

Recently, the Nepal Rastra Bank urged the HIDCL for structural reforms so as to remain under the Banking and Financial Institutions Act.

Although there was a provision for making loan investment in projects, the Company had been facing problems for lack of legal provisions to raise the loan.

HIDCL's Chairperson Arjun Kumar Gautam admitted that the Company was in dire need of diversification and expansion of investment resources.