OPG Power commits $10 million equity in Nepal's HIDCL

India's OPG Power and Infrastructure is ready to put in $10 million as equity partnership in the Hydroelectric Investment and Development Company Limited (HIDCL), a public investment company of Nepal.

The government of Nepal has 80 percent equity in HIDCL and the remaining 20 percent has been set aside for the general public and others. The company is mobilising funds from domestic and international sources for hydroelectricity generation, transmission and distribution projects.

"We have received a letter on the behalf of OPG on first week of August expressing its interest in investing in Nepal's energy sector. We have responded it as positive step," HIDCL Chief Executive Deepak Rauniar told IANS.

"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," OPG Director Dalip Dua said in the letter.

Rauniar said the OPG offer would help as many power projects are not making concrete stride due to lack of equity.

HIDCL itself has generated around IRs.5 billion to invest in various energy related projects and if talks between OPG and HIDCL yield positive results, it will able of cope with growing needs of fund crunch, he added.

"We are happy to join as equity partner and can enter into cooperation agreement or memorandum of understanding. This is the first time that any foreign investor has offered to invest in equity partner with government-owned HIDCL. We have agreed to sit together to discuss the modality of investment with OPG," said Rauniar.

OPG Power has been operating three power plants Chennai, investing in two plants in Chennai and Mayavaram, and developing 472 MW from three projects located in Gujarat, Chennai and Bellary. The company is listed in London Stock Exchange too.

Various Indian firms have either invested or shown interest in developing hydropower potential of Nepal, where technically around 84,000 MW can be generated.