Both the public sector entities say they have run out of fund amid lack of adjustment of oil fuel and utility service prices. “If the government did not arrange fund, we will not be able to import fuel to maintain normal supplies,” said NOC Spokesperson Mukunda Dhungel.[break]
Jeevendra Jha, chief of the NEA, too said the authority has no fund even to repair transformers and settle dues of contractors involved in repair and construction works.
Although energy serves as lifeline of economy, both the public sector entities entrusted to manage and oversee the sector operate with huge accumulated loss, thanks to government´s apathy to reform them.
NOC´s accumulated loss presently stands at around Rs 15 billion, whereas NEA´s accumulated loss too is well over Rs 19 billion.
“Unfortunately, the very sector that should have been leading us to prosperity has become major constraint to growth and advancement,” said an official at the Ministry of Finance (MoF).
He told Republica that MoF has already endorsed NOC´s request and forwarded a proposal to this connection to the cabinet for approval. It is yet to respond to the NEA´s plea. However, given its situation, sources argue that the ministry has no option but to arrange finances for it as well.
This is not the first time that the government is doling out tax payers´ money - collected with a promise to invest them in development works - to the NOC. So far, it has already spent more than Rs 2.4 billion to the corporation, indirectly pledging subsidy on petroleum products.
Apart from that, NOC has also taken Rs 200 million in loans from Nabil Bank and Rs 300 million from Everest Bank Limited to import fuel.
“This is very sad. But given the loss we suffer on major petroleum products, we have no other alternatives as well,” said Dhungel of NOC.
According to NOC, the corporation is presently suffering loss of over Rs 19 per liter of diesel, over Rs 4 on a liter of petrol and kerosene each and Rs 254 on a cylinder (14.2 kg) of liquefied petroleum gas (LPG).
Likewise, NEA´s records reveal that it has some Rs 1 billion in dues to pay to India for electricity it imported over the past few months. “Our situation is so worse that we have not been able to clear customs of equipment brought for different power projects because we do not have Rs 120 million,” said Jha.
Jha also attributed the NEA´s loss to lack of price adjustment of utility services.
Currently, NEA´s cost of procurement of a unit of electricity from India, Khimti and Bhotekoshi power projects stands at Rs 8.97, whereas the rate it charges from consumers averages at Rs 6.57 per unit.
“No wonder we suffered loss of some Rs 5.35 billion in the last fiscal year alone,” said Jha. Although NEA officials remain mum, some 26 percent power pilferage has also been contributing to raise the authority´s loss.
The government had allocated Rs 410 million to the NEA to conduct construction and repair works for this fiscal year. However, NEA officials say it has already used the money and is in need of additional funding, if the government is to prevent unwanted hiccups in power supply.
The country is already reeling under 14 hours of power cut a day.
Related story
Energy sector means of achieving socio-economic dev: Energy Min...
