Nepal Oil Corporation (NOC), the country´s petroleum monopoly, and Nepal Electricity Authority (NEA), the electricity monopoly, topped the list of loss-making state enterprises with accumulated loss of Rs 30.41 billion and Rs 27.53 billion respectively. [break]
However, 12 state-owned entities reported accumulated profits of Rs 33.66 billion as of the end of the last fiscal with Nepal Telecom, largest telecom operator and biggest taxpayer in the country, clocking a profit of Rs 32.06 billion.
The staggering loss suffered by majority of the state-run enterprises has been attributed to years of over staffing coupled with political interference and weak management.
During the meeting of Public Enterprises Direction Board held on Friday, top officials at most of the state-owned enterprises blamed political interference and weak competitiveness under incapable management.
Even the PEs with the potential of making profits have reported mounting losses and have been relying on government funds running into hundreds of millions of rupees annually to keep themselves afloat.
“Some PEs have sought funding from the national coffer to pay for even the operating and administrative costs. Ironically, even the PEs that have been closed are demanding government assistance,” Khum Raj Punjali, joint secretary at the Ministry of Finance said on Saturday.
The government is forced to invest its scarce resources for the sake of keeping the PEs afloat despite they have proved to be a national burden.
Process of privatizing the loss-making PEs has come to a halt as the privatization committee has not met since a long time. The committee did meet a couple of times under the present government to decide on divesting Agriculture Development Bank´s shares, bringing in strategic partner for Nepal Telecom and dissolving Agriculture Project Service Center. However, the government failed to come up with a concrete plan to lessen the burden of ailing PEs on the government.
“Present government has ignored the privatization process that has resulted in piling up of the financial burden on the government every year," said Prakash Chandra Lohani, former finance minister.
Those facing accumulated losses are National Trading, Dairy Development Board, Herb Production and Processing Company, Hetauda Cement, Janakpur Cigarette Factory, Nepal Drug , Nepal Orind Magnesite, Agriculture Inputs Company, Nepal Food Corporation and Nepal Oil Corporation.
Similarly, Timber Corporation, Nepal Transport and Godown, Nepal Airlines Corporation, National Cultural Undertaking, Janak Education Material Center, Nepal TV, Nepal Water Supply Corporation, Nepal Electricity Authority, Agriculture Development Bank, Nepal Industrial Development Corporation and Rastriya Banijya Bank.
Among the PEs enjoying cumulative profits are National Seeds Company, Industrial Estate Management Ltd, National Construction, Nepal Engineering Consultancy, National Productivity and Economic Development Center, Gorkhapatra Corporation, Rural Housing Company, Nepal Telecom, Deposit and Credit Guarantee Corporation, Nepal Housing and Finance Company and Nepal Stock Exchange.
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