Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Nepal Rastra Bank (NRB) has amended its Refinancing Work Procedure 2077 and assured refinancing facility also to hydropower below 10 megawatt capacity.
As per the central bank, hydel projects below 10 megawatt can now get refinancing facility of up to Rs 50 million at three percent interest rate. The central bank will provide will provide banks with loan at 1 percent interest rate which banks can refinance to hydropower projects.
Power producers have take the NRB’s move positively and said that this facility will help growth of Nepal’s energy sector. “The NRB decision to provide refinancing facility to hydropower plants will help hydel projects and the entire hydropower sector to grow better,” said Krishna Prasad Acharya, president of Independent Power Producers Association of Nepal.
Citing that hydro projects its their development has been affected by the COVID-19 pandemic, power producers had been seeking subsidized loan from the government, especially the central bank.
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