Prime Minister Sushila Karki has stepped in to mediate the prolonged dispute between the Nepal Electricity Authority (NEA) and industrial enterprises over tariffs for dedicated and trunk line electricity connections.
A high-level meeting was convened at the Prime Minister’s Office on Monday to find a resolution.
During the meeting, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal proposed restoring power supply to industries once they deposit an amount equivalent to one installment of their 28-installment payment plan as a security deposit. Under the proposal, industries would be allowed to pursue legal remedies and reviews while enjoying an uninterrupted power supply.
The meeting was attended by Finance Minister Rameshore Khanal, Energy Minister Kulman Ghising, Industry and Commerce Minister Anil Kumar Sinha, Chief Secretary Ek Narayan Aryal, senior secretaries, and FNCCI President Dhakal, among others.
The FNCCI has been mediating between the government and industrialists for the past week. On Sunday, Dhakal held separate discussions with Prime Minister Karki, Finance Minister Khanal, and other senior officials before summoning concerned industrialists to the FNCCI office for follow-up talks. FNCCI prepared this middle-path proposal based on those discussions.
Energy Minister Ghising had earlier conveyed to the FNCCI that further discussions could take place once industrialists cleared their first installment of pending dues. Many industries had agreed to comply, but the Shanker Group, whose companies owe the largest outstanding amount, had opposed the plan.
The Prime Minister’s intervention comes after weeks of escalating tensions between the NEA and major industrial groups. The dispute intensified when the NEA disconnected electricity to 25 factories for failing to pay premium charges levied for using dedicated and trunk lines between 2016 and 2018.
The NEA had issued a 21-day payment notice on September 26, which expired on October 18. NEA subsequently cut power to 25 industries, including Jagdamba Steel, Reliance Spinning Mills, Shivam Cement, Ghorahi Cement, Arghakhanchi Cement, and Triveni Spinning Mills, on October 20 and 25. Jagdamba Steel alone owes Rs 1.6 billion to the NEA, followed by Shivam Cement (Rs 778.8 million) and Reliance Spinning Mills (Rs 753.3 million).
Meanwhile, 13 industries have already cleared their dues, and several others have begun repayments in installments, according to NEA.
