May 13: After the merger of banks and financial institutions, hydropower companies have also started to merge to raise their paid-up capital. The Electricity Regulatory Commission, which regulates hydropower companies, has approved the merger of two hydropower companies.
The two hydropower companies with cross holding had sought permission from the commission to merge with each other.
Following the approval, a merger agreement has been signed between Ridi Hydropower Development Company and Rarang Hydropower Development Company. After the merger of these companies, the total paid-up capital of the new entity will be Rs 1.14 billion.
The companies will have to follow the standards, codes and guidelines issued by the commission from time to time regarding good corporate governance.
In case of merger of the companies, other prevailing acts, rules or directives and the management letter and rules of the company should be followed.
The commission is also encouraging other companies to merge. -- RSS