Irresponsible move of NEA makes industries suffer heavy financial losses: Entrepreneurs

Kathmandu; As industrialists have been complaining about sustaining power cuts for up to 12 hours a day, Nepal Electricity Authority (NEA) says the problem will last only for a short-term.

After the manufacturers mainly from Eastern Nepal launched protests against NEA’s move to cut electricity supply to them, the state-owned power utility organized a press meet on Sunday to give its clarification.  

The NEA Managing Director Kulman Ghising admitted that the problem in electricity supply has adversely affected manufacturers in a number of industrial corridors of Eastern Nepal. According to him, poor carrying capacity of the cross-border transmission lines, amid the ongoing dry season, has led to a problem in importing adequate amounts of electricity. “This has made a shortfall in electricity supply to the manufacturing units,” said Ghising at the press conference.

Following a decline in the domestic production, the NEA has been importing an average of 500 MW of electricity from India. Ghising said around 400 MW of electricity is being imported via transmission lines in Dalkebar and Tanakpur, while additional 100 MW of electricity is being supplied through Raxaul, Ram Nagar and Kataiya based infrastructures.

Following a heavy decline in the power supply the industrialists of Biratnagar have launched protests against the state-owned power utility. Morang Merchants Association, the umbrella organization of the private sector, has alleged the irresponsible move of NEA that has made them face heavy financial losses.

The NEA, on the other hand, said it has to cut off power supply due to a notable fall in the domestic electricity production. According to Ghising, electricity generation has fallen to only 30.35 percent of the actual installed capacity. “The local power houses have been supplying a total of 700 MW of electricity only, while we have been importing around 500 MW from India.”  

The NEA records show the peak demand for electricity at present stands at 1,700 MW, while the average demand is 1,300 MW.  The demand from industrial units has surged this year, mainly after the NEA approving an additional 800 MW this year, Ghising said.