Kathmandu, June 6: The Social Security Fund (SSF) has identified priority sectors for investment through loans or co-financing, including hydropower projects, electricity transmission lines, solar energy, and renewable energy industries. As of June 3, the Fund had accumulated contributions totaling Rs. 111.07 billion.
As the amount collected continues to increase daily, the Fund has concluded that it needs to expand the scope of its investments. On that basis, it has adopted a policy of investing in hydropower and renewable energy projects in partnership with government-owned companies. Of the four proposals received by the Fund, discussions are currently underway on two of them.
The Fund is moving forward with proposals aimed at investing in the country’s energy sector. According to SSF Director Rohit Regmi, efforts are being made to diversify investments. He stated that keeping the Fund’s deposits solely in banks and financial institutions does not significantly contribute to economic development and prosperity, prompting the search for additional investment avenues. The budget for the upcoming fiscal year has also adopted a policy of utilizing funds held by various public funds.
Director Regmi further noted that the Fund has also adopted a policy of investing in projects that produce clinker domestically and manufacture cement under the mining sector. According to him, a total of 23,476 employers and 2,958,429 contributors have been enrolled in the Fund so far. The Fund has paid out claims totaling Rs. 20.45 billion. Claims related to medical treatment, health care, and maternity benefits amount to Rs. 3.23 billion.
According to Director Regmi, payments under accident and disability protection amount to Rs. 284.43 million, dependent family protection claims total Rs. 349.57 million, and retirement claims stand at Rs. 165.84 million.
The Fund’s institutional and co-financing loan provisions allow investment in the tourism, construction, information technology, service, and agricultural sectors. The Board of Directors is authorized to provide institutional loans to sectors it deems appropriate, subject to adequate collateral or guarantees. Companies with the capacity to repay may receive fixed capital loans, working capital loans, or revolving credit facilities for project establishment and operation.
Director Regmi stated that the Fund has adopted a policy of not investing in power projects with a capacity of less than 20 megawatts. The Fund will also refrain from investing in projects where there are restrictive conditions related to power purchase agreements, where the electricity authority has the option not to purchase power at any time, or where the substation required under the connection agreement has not yet been completed.
He further explained that the Fund will not invest in projects that lack at least 30 percent equity capital, projects operated by private companies, or projects that do not fall within the Fund’s investment priorities.
People’s News Monitoring Service.
Login to add a comment