खेमराज श्रेष्ठ
Kathmandu. The government has put forward the concept of a development finance company with an authorized capital of Rs 50 billion, saying that it will open the door to development. Although preparations were made to establish the fund by bringing an act on the fast track from the ordinance itself, it could not be included in the ordinance due to lack of preparation.
The preamble of the act being prepared by the Ministry of Finance states that ‘there is a need to mobilize alternative development finance to meet the shortage of development finance for investment in infrastructure projects essential for the country’s prosperity, sustainable development and productivity growth, to implement public-private partnership projects and to contribute to the overall economic prosperity of the country, and it is desirable to fulfill such needs by mobilizing alternative development finance through various types of bonds, guarantees, equity fund management and other financial or monetary instruments.’ According to the preamble, the concept of a development finance company has been brought to raise the necessary capital for the country’s development.
The fund will have a board of directors. The finance minister or secretary will be the chairman. Similarly, there will be 6 members from the investors. There will be a chief executive officer (CEO) to operate the fund.
15 percent shares to the public
The authorized capital of the fund will be fifty billion and that amount will be divided into one hundred and fifty million ordinary shares at the rate of one hundred rupees. The paid-up capital of the fund will be ten billion and that amount will be divided into ten million ordinary shares at the rate of one hundred rupees.
In which the Government of Nepal will take 35 percent shares. International intergovernmental financial institutions or international non-governmental financial institutions or foreign banks or financial institutions will hold 25 percent shares. A total of 15 percent shares will be made to be invested from the Employees Provident Fund, Citizens Investment Fund and Social Security Fund.
There will be 10 percent shares for life insurance companies, non-life insurance companies and reinsurance companies. Similarly, it is mentioned that 15 percent shares will be issued to the general public. According to which 75 million shares at the rate of 100 rupees per share, i.e. shares worth 7.5 billion rupees, will be given. 0.25 percent of the 15 percent allocated to the general public, i.e. 187,500 shares worth 187,500 thousand will be allocated for the employees of the company.
This is it Investment Area
The company will invest in 11 specialized projects of various national priorities. It will invest in energy development or power generation, power transmission or distribution, road construction or road improvement, railway construction, airport construction or improvement, tunnel construction or tunnel expansion. Similarly, it will invest in the construction of industrial development infrastructure (special economic zones, industrial parks, dry ports, information technology parks or special tourism areas). Similarly, it will invest in the construction of urban development infrastructure, establishment and operation of data centers, construction or operation of cable cars, ropeways or podways, construction or operation of cable cars, ropeways or podways.
The Act states that the Fund may invest in national priority projects under public-private partnership in accordance with the law implemented by the private sector. It may invest in other areas of a similar nature in accordance with the objectives of financial instruments or various funds. Similarly, it is planned to authorize the company to purchase trains or aircraft or their parts or equipment required to operate the infrastructure.
However, Section 6 of the Act specifies the areas in which the Fund cannot invest. The Fund will not be allowed to invest in projects with an estimated cost of less than one billion. The Fund will also not be able to invest in projects that cannot provide immediate returns after implementation. The Fund will not invest in projects that cannot provide collateral for loans or guarantees provided by the Fund. The Fund will not be allowed to invest in projects that require loans by pledging bonds or debentures issued by the Fund as collateral or guarantee. No natural person will be allowed to invest in projects that are implemented.
The Fund will not be allowed to invest in projects that are implemented by a firm, company or organization that is a fundamental shareholder, partner, director or member of the Fund or a company or organization that is a director or chief executive officer of the Fund or a member of the Fund for at least three years before taking office.
##Company’s work, ##Duties and rights
##
## The main task has been assigned to make necessary financial investments in infrastructure projects and production sectors that will help in economic development, employment promotion and increase in the country’s gross domestic product.
## The Government of Nepal, the Provincial Government, any organized organization or project may issue a letter of credit and mobilize finance. The project may be invested or invested by taking a mortgage.
May receive loans or grants from Nepal Rastra Bank, international financial institutions or foreign banks or financial institutions.
The Act authorizes the Fund to raise loans or equity by issuing bonds or hybrid financial instruments of bonds and equity in the domestic or foreign capital markets.
The Fund may list the bonds or debentures issued by it in the domestic or foreign capital markets and buy and sell them in the securities market or develop a liquidity market.
May provide loans or participate in national priority projects by mobilizing equity. It may purchase, sell, hold or underwrite bonds, debentures, debenture stocks, securities, commercial papers or certificates of deposit issued by the Government of Nepal, Nepal Rastra Bank, foreign governments, foreign central banks or domestic or foreign financial or corporate institutions.
A financial trust may be established for the purpose of investing in projects of national pride or national priority or public-private partnership projects that can provide significant returns to the national income. It may act as a fund manager or alternative development finance fund manager.
The Fund has been authorized to act as a financial intermediary agency if any corporate institution or project requests funds to implement any infrastructure project. The Fund may monitor the project for which the loan or guarantee has been provided or take necessary action for the implementation of the project.
प्रतिक्रिया दिनुहोस्