Indian company interested in equity partnership with HIDCL

INDIA’S OPG Power and Infrastructure Private Limited has expressed interest in investing in Nepal’s hydropower sector in partnership with the Hydrœlectric Investment and Development Company Limited (HIDCL). The company, which operates a few power projects in India, has committed $10 million in equity partnership with HIDCL. OPG had dispatched a letter to HIDCL on August 3 expressing its interest in investing in Nepal. OPG Director Dalip Dua also attended an international investors’ conference organised by HIDCL on August 28- 29, where he committed the investment, according to a HIDCL statement. “We agree to invest (after due diligence) $10 million in a project where HIDCL will do the syndication of fund, and be part of debt investment in a project,” read the letter signed by Dua. “We are happy to join as equity partner and can enter into cooperation agreement or memorandum of understanding.” HIDCL Chief Executive Deepak Rauniar said they will hold further discussions with OPG to determine the investment modality — “whether it wants to invest through HIDCL or as an independent partner having equity in the project”. This is the first time that any foreign private investor has agreed to join as equity partner with HIDCL. Government-owned HIDCL has been mandated to generate resources from both domestic and international markets to massively invest in the power sector. OPG is a captive power producer with an operating capacity of 270 MW. It operates three plants — 77- MW Chennai I and II and 80-MW Chennai III, according to its website. It also has investment in 25.4-MW Mayavaram and 10-MW Waste Heat Chennai. Other projects being developed by OPG are 160-MW Chennai IV, 300-MW Gujrat and 12-MW Bellary. Rauniar said other international investors also showed interest in investing during the two-day meet. The event was attended by investors from India, China, Japan, Korea, USA, New Zealand, Norway, Czech Republic, Australia, Russia and Bangladesh. Foreign diplomats, donors and Nepali government officials also participated at the meeting. The meeting was held to discuss 10 storage-type hydro projects each having capacity of more than 100 MW and generate resources for them. During the meeting, Asian Development Bank Country Director for Nepal Kenichi Yokohama expressed readiness to invest in storage- type projects. HIDCL has so far signed investment agreement for 42-MW Mistri Khola Hydropower Project and 27- MW Dordi Khola project. It is holding talks with commercial banks to inject funds into four other projects as well. The company currently has Rs 8.5 billion, most of which is deposited in banks.