The Hydroelectric Investment and Development Company (HIDCL) has extended its finance provision to hydropower projects of capacity above 15MW in Nepal.
Earlier, the federal body provided monetary aid to the projects with generation capacity of more than 25MW.
As per the new regulations, it will provide funds of up to NPR200m ($2.25m) for medium-size projects under consortium model, reported Hydroworld.com.
HIDCL CEO Deepak Rauniyar remarked that the company has implemented the move to provide the finance to the projects, as it poses a major challenge for medium-size projects developers.
Rauniyar added that it would begin financing following the fulfillment of all the necessary criteria by the proposer.
To date, HIDCL financed a 42MW Mistri Khola Hydropower Project as its first project in a consortium of banks led by Nabil Bank.
Also, it has invested in Dhalkebar-Muzaffarpur cross-border transmission line through a 14% acquisition of Power Transmission Company Nepal (PTCNL), which is expected to build the project on the Nepali side.