1.What is Druk Holding and Investments Limited (DHI)??
DHI is a company incorporated under the Companies Act of Bhutan and it holds shares in selected companies on behalf of the government.DHI is also the investment arm of the Government and Ministry of Finance (MoF) is the sole shareholder of DHI.
2.How was the DHI conceived?
The conception of DHI including the underlying motivation was envisioned by His Majesty, the King to safeguard the wealth of the nation for future generations.
3.What is the mandate and purpose of DHI?
To safeguard and enhance the national wealth of the country through prudent management of funds and efficient utilization of public resources.
To strengthen corporate governance by ensuring clear separation of the ownership and management of the DHI and its portfolio companies. This will allow the Ministry of Finance to focus on its overarching role of developing policies and plans.
To enhance the performance of the DHI Portfolio Companies (DPCs) by making them responsible and accountable for their performance.
To make investments by optimal usage of resources or raising funds. Through these investments, DHI shall increase employment opportunities for the Bhutanese people.
To nurture and retain business talent for the corporate sector of Bhutan
To support democracy by strengthening the national economy
4.What is the source of income for DHI?
DHI's primary source of income is the dividends received from its portfolio companies.
5.What is the Blue Ribbon Panel (BRP)?
The BRP is a committee consisting of eminent persons whose only function is to nominate the Board of Directors of DHI and to determine the Board size of DHI in consultation with the DHI Board of Directors
6.How would the DHI operate with respect to companies where government has only part share holding?
Where government has part shareholdings, DHI will only exercise its mandate as per the Companies Act of Bhutan and may have directors on the Board to represent DHI.
7.What is DHI's priority area of investment?
As the government's investment arm, DHI shall be guided by the priority areas listed in Schedule 1 and 2 of the FDI policy 2010.
DHI shall also invest in commercially viable large projects and reserved sectors where the private sector may not have the capacity and there is long gestation period on the returns on investments.
8.How will DHI invest outside Bhutan?
Where there are good opportunities for investments outside Bhutan, DHI will consider making investments.
These investments might be in strategic areas for Bhutan such as the electricity sector in India.
DHI could buy shares in these kinds of strategic companies.