After already-endorsed 30 percent right shares, Chhyangdi Hydropower Company Limited (CHL) has proposed issuing 40 percent right shares on the paid-up capital.
On Poush 29, 2076, the 6th Annual General Meeting (AGM) approved a 30 percent right share on the paid-up capital of Rs. 28.35 crores. SEBON, the regulatory board, is currently reviewing the idea.
Hydropower businesses can issue right shares to complete the remaining construction work of a project if it can’t be completed with original resources, according to the Nepal Electricity Authority’s flexible policy on rights issuance. Due to uncontrolled conditions, the cost of project building must have risen beyond the company’s ability to sustain. Natural catastrophes, epidemics, wars, internal rebellions, shutdowns, strikes, blockades, and other uncontrollable conditions all generate a shortage of critical labour and resources.
Chhyangdi Hydropower Company Limited (CHL) has proposed an additional 40 percent rights issuance on the paid-up capital after the already-endorsed 30 percent right shares, based on the same provision. The company claims that the extra capital is required to compensate for the increased cost of development of the Upper Chhandi Khola Small Hydropower Project 4MW as a result of the pandemic and floods.
After the 30 percent rights issuance, the company’s paid-up capital will be Rs. 38,69,77,500. Following this adjustment, the 40% right shares will be issued on this capital, bringing the total paid-up capital to Rs. 54,17,68,500.