Objective

The broader objective of the Company is be to mobilize funds for investment in generating, transmitting and distributing hydroelectricity to free the country from the chronic power shortage. The Memorandum of Articles of the company stipulates the following objectives:

• invest capital as either debt or equity in hydroelectricity generation, transmission and distribution projects
• invest in hydroelectricity generation, transmission and distribution projects through banks and financial institutions
• borrow loan and receive grants from foreign and international financial institutions so as to invest in hydroelectricity generation, transmission and distribution projects
• issue financial instruments such as bonds, debentures, and certificate of deposit for long term capital mobilization

In this regard, the salient features of the company are:

• it invests exclusively in hydropower projects
• it invests only in middle and mega hydropower generation projects (for 25 MW and above projects, lend at least Rs.250 million in a project; for 15-25 MW projects, lend at most Rs. 200 million in a project; and for projects of 10-15MW provide refinancing facilities to banks at Bank's Risk)
• tries its best to acquire adequate amount of resources through foreign soft loans
• in order to collect long term funds, the company functions as an organized institution
• in order to address the weaknesses witnessed in public enterprises, the company has prepared 'Company Operation Policy' as an integral part of the Memorandum of Associations. It is the master document that ensure that the company is run in a professional manner
• despite heavy government equity funding, it operates professionally ensuring profitable utilization of resources