Remit hydro is a new concept formulated by Hydroelectricity Investment and Development Company Ltd. (HIDCL) for the development of hydropower sector in Nepal. A part of the remittance money the country is receiving will be used in the equity investment of hydropower projects. This will act as the social security vehicle for the benefit of the remit holders. The remit holders will make investment in this company in tranches to build the hydropower projects and after construction the dividend money is paid back as pension fund. It means, “Remit Hydro” is not a project per se, but is a concept. This is a concept which advocates that development of hydropower in exchange of the equity money.
Remit Hydro Limited was established in the year 2014 AD. This is a subsidiary company of Hydroelectricity Investment and Development Company Ltd. (HIDCL). HIDCL is a government company established with an objective to develop hydroelectricity in Nepal. It is a new concept which advocates that hydropower projects can be built using the remittance money and, the contributors of equity will get a return of the equity invested by them for a long period (like a pension) during the economic life of the hydropower projects. A sustainable livelihood of migrant workers is greatly linked with the sustainability of investments of their savings during their productive life.
The concept of Remit Hydro also supports the government’s policy to provide investment opportunity to the Nepalese citizen in hydroelectricity sector to enhance their economic status and per capita income level. Accordingly, Remit Hydro provides an investment opportunity to the migrant workers to get directly involved in the nation building process and get benefitted from the attractive returns from the hydropower projects developed by the company.
To fulfill its objectives, the company has acquired survey license to develop hydropower project namely, Gunsa Khola HEP 71.5 MW located in Taplejung district of Eastern Nepal.
As of now the whole of the shares of the company is being held by HIDCL. HIDCL has a plan to divest its shareholding and will introduce a strategic partner who can support in the raising of funds and also can contribute in the construction and operation phase.
At present to expedite the construction of the project access road construction is underway. The company is also working to build the construction power line for the project construction.
HIDCL will take a lead to arrange both the equity and debt requirement of the project.
With the broad objective of mobilizing remittance in hydropower sector to help in generation of hydropower in Nepal, the Company's Memorandum of Articles stipulates following objectives:
- Identification of potential projects to get the license for survey, construction, Operation and maintains to develop the hydropower projects and sell hydropower produced from Hydropower projects.
- Construction of Substation and transmission line as required, for selling the hydropower and Manage necessary function for selling hydropower with tapping in national grid.
The Company, established specifically to promote Hydropower Projects, will perform the following functions:
- Borrow loan from any bank and financial institutions with/ without collateral.
- Buy or lease of land, buildings, mills and machineries, vehicles in the name of the company to use.
- Any other related activities associated with project development and defined by MOA of the company.