Sahas Urja Limited Passes Resolutions for 8th, 9th, 10th, and 11th AGMs

SAHAS URJA Ltd. recently held its 8th, 9th, 10th, and 11th Annual General Meetings on Sunday, 2081.07.04 (20 October 2024) at 11:00 AM at Karki Banquet, Babarmahal, Kathmandu. Mr. Him Prasad Pathak, Chairman of the Board of Directors, chaired the meetings.

Key Resolutions Passed:

1. Financing Update: 23.6% of the required capital for the project will be raised from shareholders, and 76.4% will be financed through debt.
2. Auditor Appointment: The Chairman, representing the Board of Directors, proposed the appointment of Idip Dhakhal & Associates (Idip Dhakhal - FCA) as the auditors for the fiscal year 2081/082, with a remuneration of Rs. 500,000 (excluding VAT). The proposal received unanimous approval.
3. Dividend: At the Annual General Meeting, a special resolution was presented to distribute 8% bonus shares from the company's profit for the fiscal year 2080/081. Additionally, to cover the tax on the bonus shares' issuance, it was proposed to distribute a cash dividend of Rs. 147,36,842.11 at a rate of 0.421%. This proposal received unanimous approval.
4. Appointment of Independent Director: Following the discussion, the proposal to appoint Mr. Vibhuti Ojha as an independent director received unanimous approval.
5. Approval of  Additional Loan for the Project: The project faced unexpected geological challenges and earthquake risks, requiring design modifications. The termination of the EPC contract and switch to a BoQ contract led to increased construction time and costs. Additionally, COVID-19 and rising dollar exchange rates further increased project costs.To address these challenges, the Board of Directors approved an additional loan of Rs. 4,18,54,00,000/- from banks and financial institutions. This includes:

• Rs. 2,68,54,00,000/- as a Term Loan.
• Rs. 1,50,00,00,000/- as a Bridge Gap Loan from Nabil Bank for the Budhi Gandaki Hydropower Project (341 MW, Semi-Reservoir).

Rights Share Issue: Following the increase in the company's paid-up capital to Rs. 3,78,00,00,000 resulting from the distribution of bonus shares, the company plans to issue 3,78,00,000 (thirty-seven million eighty lakh) rights shares valued at Rs. 3,78,00,00,000 at a 1:1 ratio. This move aims to generate funds for the Budhi Gandaki Hydropower Project (341 MW, Semi-Reservoir). The proposal received unanimous approval.

Conclusion: SAHAS URJA Ltd. recently held its annual general meeting. The company made important decisions to strengthen its financial position and move forward with the Budhi Gandaki Hydropower Project. These decisions include securing additional funds through a rights share issuance and approving a revised financing plan. This shows SAHAS URJA's commitment to overcoming challenges and providing clean energy to Nepal.