Kathmandu. Rastriya Swatantra Party (RSP) President Rabi Lamichhane has indicated that the government would take a stern stance on the hydropower companies.

During a meeting with representatives of the private sector including the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI) and Nepal Chamber of Commerce on Sunday, Lamichhane said that the government was clear on the issue of IPO in the hydropower sector.

He made it clear that the loss-making companies would not be allowed to issue IPOs, adding, “We cannot allow the people’s investment to sink. Therefore, the government decides ruthlessly on such matters. ’

He said that the government will go ahead with the policy of allowing IPOs only after evaluating the financial condition of hydropower companies. Similarly, he said that the government is positive about reducing the limit on income tax. “It is not justified to pay 50 per cent tax on income, we are ready for reform. ” he said.