Hesitant Insurance Board retards mega power project

Beema Samiti (Insurance Board) -- the regulatory authority of insurance companies -- is sitting pretty on the Rastriya Beema Samsthan's (RBS) investment proposal of the Upper Tamakoshi hydro power project for reasons best known to it.
The mega initiative, which aims to be a fully self-reliant venture, is supposed to get funding from a host of prominent domestic enterprises. For instance the Employment Promotion Fund (EPF), Nepal Electricity Authority (NEA) and its employees, and other financial institutions, including the RBS, are supposed to chip in realise the dream project that will be constructed with complete domestic capital and is second to Chilime Hydropower in this model.
The RBS -- a state-run life and non-life insurance company -- pledged Rs 2 billion for the project. It had sought permission from the Beema Samiti and Finance Ministry about a month ago to go ahead with its investment plans.
"Though the Finance Ministry readily gave its approval, the Samiti is yet to take a decision," said a source at the RBS.
Interestingly, the pussyfooting does not augur well at a time when the nation has been reeling from 16-hour daily power cuts, thanks to the growing divide between demand and supply.
Perhaps, the delay can be attributed to the change of guard in the Samiti. "A section of unscrupulous elements are against the investment since it is raking in moolah by investing in various financial institutions," reasoned the source.
The RBS has committed Rs 2 billion in five installments -- Rs 400 million annually -- over the next four years. In that light, it is not a huge sum, since the RBS collects over Rs 1.25 billion in premium annually.
"It is a risk-free investment. Be that as it may, the status quoists are against the venture," added the source. The insurance company is certainly not suffering from any funds crunch. It boasts of idle funds worth Rs 13 billion.
"Besides, the Samiti's accounts haven't been audited for the past seven years," said Krishna Hari Baskota, acting revenue secretary.
According to a recent report, the Upper Tamakoshi project aims to generate 456 MW, surpassing the preliminary estimation of 309 MW.
Despite the Samiti's delaying tactics, both EPF and NEA authorities remain firmly committed to the venture as principal investors.
Domestic financial institutions and popular support -- in the form of shares -- will fund 30 per cent of the low-cost project. While, residents of Dolakha -- the site of the initiative -- are tipped to get 10 per cent of shares.