Nepal’s private sector raises alarm over industrial load-shedding
KAATHMANDU: Nepal’s leading private sector organizations, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Confederation of Nepalese Industries (CNI), have voiced deep concern over persistent power outages—both scheduled and unannounced—affecting the nation’s industrial sector. The groups warn that these disruptions, lasting up to 12 hours daily, threaten industrial output, economic stability, and investor confidence.
In a press statement released on Thursday, March 20, 2025, the FNCCI highlighted the severe impact of irregular power cuts by the Nepal Electricity Authority (NEA). “Sudden and frequent outages are halting continuous industrial operations, slashing production levels, and causing significant financial losses,” the statement read. The FNCCI noted that power disruptions damage machinery and equipment, adding to the financial strain on businesses already grappling with operational challenges.
The organization cautioned that these interruptions could reverse recent economic gains and heighten the risk of a long-term economic downturn. To address the crisis, the FNCCI called on the government to act swiftly to guarantee a stable and uninterrupted power supply to industries. It also urged increased investment in energy infrastructure, streamlined power distribution, and ongoing collaboration with the private sector to support Nepal’s industrialization goals.
Echoing these concerns, the CNI emphasized that industries—vital to the economy—are bearing the brunt of load-shedding. The group criticized the NEA for previously exporting electricity while subjecting Nepali industries to power cuts, a practice it says has resumed with outages of up to 12 hours daily. “The lack of electricity raises production costs and severely hampers output,” the CNI stated, adding that such disruptions deter entrepreneurs from establishing or expanding businesses.
The CNI pointed out a contradiction in government policy: while efforts are underway to bolster domestic industries and improve the investment climate, the NEA’s frequent power cuts undermine these initiatives. “Electricity is a fundamental raw material for industries. Without it, production is impossible,” the CNI’s statement read. The organization appealed to the government and relevant authorities for immediate action to restore a consistent electricity supply to the industrial sector.
Both groups underscored the broader implications of the crisis, noting that Nepal’s industrial competitiveness and economic recovery hang in the balance. The FNCCI and CNI’s unified stance signals a pressing demand for accountability and solutions from the NEA and the government to safeguard the nation’s industrial backbone.
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