The government has brought the Hedging Regulatory Manual 2075, which has been able to utilize the Hedging facility for 10 years.
The government, which has brought the risk of investment in foreign currency to reduce the risk, will provide access to electricity, transmission lines, railway, road, and other major projects from electricity generation. The government has provided hedging facilities to keep the exchange rate constant for foreign currency exchange every day.
According to the new system, one hundred MW or more capacity hydropower projects will get hedging facilities. The project to construct a capacity of 220 kW or more than 220 KWA or more than the capacity of the electricity transmission line, will also be utilized to utilize such facilities, Bank of Foreign Regulation Management Department, Bishma Dhungana, said. The government has provided provision of hedging facility for construction of rail, metro and mono railway than 10 miles [10 km], "he said.
Similarly, the road between 50 kilometers long, the Government of Nepal, the Council of Ministers, and the other projects which have been decided by the decision-makers also have the provision of hedging facilities. The Ministry of Finance will determine the hedging fee on the mutual consent of the Ministry, the bank and the investor related to the project based on the nature of the foreign exchange rate and inflation risk, project self-interest, the duration of the loan payment, and the nature of the project.
Hedging facility will be used for any use of at least 10 years for any project. The plan for renewing the hedging certificate has been given in the rules for renewal of thirty days before the settlement period. If the project has requested such a request, the Bank will renew the rate of Nepali rupees with the US dollar for the past 10 years, according to the nature of the project for five years.
The Nepal Rastra Bank has said that the establishment of a separate hedging fund for hedging fees is administered. The amount of money in the fund established by the national bank will be as per the national bank's determination. The hedging facility project and the company receives the return from the investment and management should be deposited in the currency of the foreign exchange when taking the hedging facility.
Regulations (Lucks) will be made for manipulation, if there is a change in Nepalese currency on foreign currency, without manipulation or decrease in the regulation rate. The bank will provide hedging facilities to investors in such a lumped exchange rate to get the refund of foreign debt back in accordance with the agreement.
Investment investors will be able to withdraw investment as per the agreement in exchange of foreign debt which has been deposited in foreign exchange bank at an exchange rate.
The Hedging facility should be taken from the approved nation bank to invest overseas foreign currency in accordance with the prevailing federal laws and bring foreign currency. The project seeking the hedging facility will have to request a national bank for the hedging facility, the period he wants to be hedging, the loan payment condition and the period of the period. Nepalese currency will be deposited in Nepal currency according to the regulation rate, which will be deposited in the name of any commercial bank in the name of the project.
The applicant company and the project will have to request the company or the company to invest the loan, the main operator of the company, other details, including the share structure, and request the nation to the bank. For any project, the approved foreign exchange bank will have to deposit the account balance provided by the bank.
