Hoteliers said they are facing a tough time lighting up their hotels, operating lifts and providing other basic services to tourists, while manufacturers say the fuel scarcity has left them with no option but to cut production.[break]
“Energy crisis has hit us all. But the situation is worse in the case of manufacturing, as lack of energy has limited their output to 25 percent of capacity,” said Dinesh Shrestha, chairman of the FNCCI Industry Committee.
Referring to complaints received from entrepreneurs in different parts of the country, he said a mere 25 percent capacity utilization simply does not generate enough returns for investors, who have to pay their wage bills irrespective of industrial operations. Add this to the bank loans that they need to service.
“There is demand and we have raw materials, workers and everything. But what´s the use if the state does not supply electricity for even four hours straight, or diesel -- the only other reliable energy,” said Shrestha.
With water levels in rivers dropping in the winter, which invariably lowers electricity generation, the government has already imposed 11 hours of power cuts a day. It has also disclosed that the outage could jump to 18 hours a day over the next three months.
Industry in the past used to rely largely on diesel-powered generators though that raised the energy bill almost three fold.
Sadly, Nepal Oil Corporation (NOC) -- the state owned petroleum import monopolist -- has not been supplying enough diesel to the market since some three weeks back.
“It is very unfortunate-- the government cannot supply diesel even when we are ready to bear the additional cost,” fumed Pradeep Jung Pandey, FNCCI vice-president.
Delegations of the FNCCI and the Confederation of Nepalese Industries recently ventilated their concerns to both the energy minister and the commerce and supplies minister. However, their pleas for support have only fallen on deaf ears.
“We categorically suggested to the government to announce upward revisions of power purchase agreements (PPA) for producers that complete their projects and start generation within 2012 and 2013,” said Shrestha.
They even suggested the government hike the price of petroleum products if that alone could ease supplies.
“The government has done nothing,” said Pandey. Such apathy was not just affecting the country´s exports but also pushing up imports, adding to the problems of the economy, he added.
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