Kathmandu. Arun Kabeli Power Company has assured dividend to its shareholders next year.

The company has promised to pay dividend to its shareholders next year. In order to pay dividend, the insurance company has to pay the damage caused by the flood in the project.

The power generation of the 25 MW Kabeli B-1 Hydropower Project was halted for seven months due to the damage caused by floods and landslides on June 14, 2000.

The floods and landslides occurred on September 26 and 28, 2081 damaged four towers of the 132 KV transmission line between Ilam and Godak under the Kabeli Corridor, halting the production of electricity for two months. Neupane said that the dividend could not be distributed to the shareholders this year due to the decrease in electricity income.

“It has been a long time since the surveyors deputed by the Rastriya Beema Company Limited visited the site from time to time, analysed the loss caused by the floods and collected Rs 160 million for the loss of property and power generation and submitted a file to the insurance company for payment of the insurance compensation,” he said.

According to him, the project has not received the compensation amount even after 28 months of the floods. The chairman has appealed to the shareholders to pay the amount.

Ramesh Prasad Neupane, chairman of the company, said, “The company has not been able to distribute this dividend due to the loss incurred in Kabeli B-1 Hydropower Project last year.” Since the project is running satisfactorily and once the insurance claim is received, we will be in a position to pay dividend next year. I need your help in this. ’

The bank is preparing to partially repay the long-term loan taken from Kumari Bank for the construction of Kabeli B-1 Hydropower Project and to invest further in the 37.60 MW Kabeli A Hydropower Project being promoted by Kabeli Energy Limited.

The meeting has approved the proposal of issuing right shares at the rate of Rs 100 at the current paid-up capital of Rs 38.959 million.

Arun Kabeli Power Limited is issuing right shares in the ratio of 2:1 for further investment in Kabeli A Hydropower Project and to pay the bank’s long-term loan. The government will receive Rs 1.94 billion from the right shares. According to Neupane, the bank will invest additional Rs 947.9 million in the Kabeli A Hydropower Project and partially repay the bank’s long-term loan taken from Kumari Bank Limited for the construction of 1.25 billion megawatts Kabeli B-1 Hydropower Project.