NEA-Industrialists dispute persists despite PM Oli’s directive to restore power

KATHMANDU: Since the formation of the new government last Monday, ongoing discussions have taken place between the Nepal Electricity Authority (NEA) and industrialists to resolve the longstanding disputes regarding dedicated and trunk line arrears. Despite multiple meetings, the talks have yet to produce tangible results. Even with Prime Minister KP Sharma Oli’s involvement, the electricity for six industries that had their power cut off remains unreconnected as of Sunday noon.

On July 15, while assuming his role at the Ministry of Energy, Water Resources, and Irrigation, Minister Deepak Khadka committed to resolving the issues related to dedicated and trunk lines. The following day, Minister Khadka conducted separate briefings with NEA Executive Director Kulman Ghising and the industrialists. On July 17, a joint discussion was held between the NEA leadership and the industrialists.

However, both parties maintained their respective positions, leading to an announcement that representative talks would be held on Thursday between the industrialists and NEA. Unfortunately, no such discussion occurred on the scheduled day.

The issue of dedicated and trunk line arrears was also raised during the Cabinet meeting on Thursday. Prime Minister Oli expressed his intention to study the report from the commission formed to resolve the dispute and find a viable solution.

On Friday, Prime Minister Oli led a comprehensive discussion involving Industry Minister Damodar Bhandari, Energy Minister Khadka, NEA Executive Director Ghising, and industrialists, including Pashupati Murarka and Amit More.

Prime Minister Oli committed to addressing the dedicated and trunk line arrears dispute with a concrete decision in the future. Executive Director Ghising emphasized that a decision from the NEA board of directors was necessary to restore electricity.

However, Prime Minister Oli instructed the board to convene on Friday to expedite the process. Immediately following the discussion with the Prime Minister, an emergency meeting was called at the Ministry of Energy, summoning members of the NEA board. According to a board member, the meeting only involved an informal discussion on the policy and legal matters regarding the resolution of dedicated and trunk line arrears.

Prime Minister KP Sharma Oli’s directive to immediately restore electricity had no impact. When Kulman Ghising requested a written letter to proceed, the Energy Minister angrily walked out of the NEA Board meeting.

“The board meeting process is separate; today’s meeting was called as an emergency discussion by the Minister,” said the member. “Only the matters that can or cannot be done were discussed. No decision was made regarding reconnecting the electricity.” The member added that electricity could only be restored after receiving a written letter from the government and a decision by the NEA board.

On June 25, NEA had sent a letter to 61 industries, giving them a 15-day deadline to pay their arrears. The total outstanding amount owed by the industrialists to NEA is Rs 6.60 billion. As the 60-day period for paying the electricity bill had passed, NEA instructed the industrialists to pay with an additional 25 percent surcharge. The deadline expired on July 9, leading to NEA starting to cut off the electricity.

So far, the electricity of Arghakhanchi Cement, Reliance Spinning Mills, Ghorahi Cement, Jagadamba Spinning, Jagadamba Steel, and Hulas Steel has been cut off. In protest against NEA’s action, the industrialists began cutting their own electricity from June 14. Following the Prime Minister’s directive, industrialist Murarka mentioned that the industrialists have started reconnecting the electricity themselves. NEA has also claimed to be implementing the recommendations of the commission formed by the Cabinet.