October 3: The Independent Power Producers Association of Nepal (IPPAN) has objected to the recent arrangements made by the Insurance Board regarding hydropower projects.
In a recent statement, IPPAN has expressed concerns regarding the hike in the amount of insurance policy for the hydropower sector by the Insurance Board under undue influence.
IPPAN chair Krishna Prasad Acharya argued that it is not appropriate to issue directives under the influence of some non-life insurance companies.
“Instead of the Insurance Board taking the initiative to provide full compensation for the projects that suffered damages due to recent floods, the amount of the insurance policy has been increased,” said IPPAN Chair Acharya, adding that such decision is not acceptable to IPPAN.
IPPAN has said that effort are being made to hurt the energy producers with mala fide intention instead of compensating for the damage caused to some river basin corridor projects in Gandaki and Bagmati provinces during the recent floods.
IPPAN has demanded that the government and concerned ministry take immediate action to revoke such controversial decision that is not helpful to promote the energy sector. It has also demanded action against the culprits.