After the completion of Piluwakhola Hydropower Project in 2001 , Arun Valley Hydropower Development Company Limited started feasibility study of Ridi Hydropower Project (2400 KW) in Gulmi district and established a company named Ridi Hydropower Development Company Limited to develop the project. After that Arun Valley Hydropower Development |Company Limited started feasibility study of Kabeli B1 Project on Kabeli River . It is located in between Panchthar and Taplejung district of Mechi Zone in Eastern Development Region of Nepal . To develop this project, Arun Valley Hydropower Development Company Limited established one company named Arun Kabeli Power Limited on 7th January, 2011 as a subsidiary company .
The company has signed a connection agreement with Nepal Electricity Authority (NEA) , Grid Development on 29th May, 2012 for the power evacuation from this project and signed Power Purchase Agreement (PPA) with NEA on 13th July , 2012. According to PPA , power purchase rate per kW is Rs. 4.80 for wet months and Rs. 8.40 for dry months. For this purpose, months from January to April are considered as dry months and rest as wet months. Electricity Generation License has been achieved on 12th July ,2013 from ministry of Energy Similarly, all permissions and licenses from related governing body were achieved during the fiscal year 2070/71 B.S. Required Commercial Operation Date (RCOD) of this project has been fixed for 23rd April , 2017 . However , due to uncompletion of Transmission Line work by Nepal Government , the company has applied for revised RCOD.
70% of paid of capital was paid from promoter shareholders and remaining 30% (i.e. Rs. 145millions) has been issued to Shareholders. Out of this 10% ( i . e. 150 millions) was provisioned to public of project affected area and remaining Rs.300 millions to General Public ( including staffs of the company and mutual fund).
Total investment of the company of made from equity and bank loan . Upon the repayment of the bank loan , the company shall issue bonus share and increase value of the investment . This is the beauty of investment in hydropower projects. According to projection , in the first year of commercial Operation, it will be able to earn Rs. 762.80 million . With considering the annual increment by 3% income of 5th year will reach to Rs. 871.9 million. It is projected that shareholders will earn dividend from 2nd year of commercial operation.
| Fiscal Yaer | Cash Div | Bonus | Total |
| 080-081 | – | – | – |
| 078-079 | 0.53% | 10.00% | 10.53% |
| 077-078 | 0.89% | 17.00% | 17.89% |
| 076-077 | 0.29% | 5.71% | 6.00% |
