KATHMANDU, March 25 : The Nepal Electricity Authority (NEA) has implemented nearly 12 hours of load shedding in industrial areas, leading to a sharp decline in production. Industries report that their output has dropped by more than 50 percent due to the power cuts.
The NEA has been unable to supply electricity to industries from 6 pm to 6 am as power imports from India remain unavailable at night. Industrialists accuse NEA Managing Director Kulman Ghising of misleading the public despite ongoing power outages in the sector.
The Cement Manufacturers Association of Nepal (CMAN), Steel Producers Association of Nepal, and Nepal Yarn Producers Association held a joint press conference on Sunday, stating that load shedding has severely reduced production and increased costs, leading to higher prices of goods. They also demanded an immediate end to the power cuts.
Industries such as cement, steel, and yarn, which require 24-hour power supply, have seen a rise in production costs and significant cuts in output. Former President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Pashupati Murarka, said load shedding has had a major impact on industrial production.
"With 12 hours of power cuts, industries have reduced production by over 50 percent," Murarka said, "The NEA is discouraging industrialists and businesses."
He emphasized that power shortages affect industries differently, depending on their nature. He added that while developed countries prioritize electricity supply to industries, Nepal's approach of cutting industrial power first is crippling the sector.
Unannounced load shedding hits industrial sector in Nepal
Despite the severe impact of load shedding, industrialists claim the NEA is spreading false information. Raghunandan Maru, President of the Cement Manufacturers Association of Nepal, stated that power short supply has made it difficult for industries to operate. He accused the NEA of engaging in deception by disconnecting industrial power supply while claiming there was no issue.
"There is a limit to lying; the truth cannot be hidden," Maru said, "Industries are facing 12 to 14 hours of power cuts." He added that operating industries with diesel and generators has further increased costs.
Recently, there has been criticism over rising prices of cement and steel rods. Industrialists are under pressure to lower prices amid accusations of carteling. Hari Neupane, president of the Steel Producers Association, cited rising raw material costs, a stronger US dollar, and load shedding as the main reasons for the price hike.
"Load shedding is a major factor behind the price increase," Neupane said, "We are being blamed for unilateral price hikes." He added that industries with a production capacity of 300 tons are now producing only 125 tons due to power shortages.
Shashikant Agrawal, President of the Nepal Yarn Producers Association, criticized the NEA for its lack of concern toward industrial challenges. "We need a 24-hour power supply," he said, "Industries are suffering due to load shedding."
In 2018, the NEA officially declared Nepal load-shedding-free through a public notice. However, industrialists say they still struggle to receive electricity based on demand. They noted that load shedding has been a regular occurrence between mid-December and mid-June every year.
Former President of the Cement Manufacturers Association of Nepal, Dhruba Thapa, pointed out that industries cannot operate half-time. "Once machines start running, industries need to operate 24/7," he said.
Industrialists argue that they follow all tax, revenue, and regulatory requirements while contributing to employment, import substitution, exports, and local raw material use, yet they face power cuts.
They also accused the NEA of bias against industries. Industrialists urged the NEA to resolve disputes over dedicated and trunk power lines, citing recommendations from a committee led by former Supreme Court Justice Girish Chandra Lal. They stated they would support the NEA if it implements the committee's report.
Previously, Nepal imported electricity from India for 20 hours daily. However, since Sunday, India has reduced supply to only 12 hours (6 am to 6 pm). This has resulted in 12-hour load shedding in Nepal’s industrial corridors.
Nepal's run-of-the-river hydropower projects produce only 1,000 MW during the dry season, leading to supply shortages. While over 700 MW of electricity is still being imported from India during the day, the lack of nighttime supply has worsened the crisis.
To address the issue, the Government of Nepal has formally requested India to provide 230 MW of power in the evening. The Ministry of Energy, Water Resources, and Irrigation has confirmed that diplomatic efforts are ongoing through the Indian Embassy to secure additional power.
Meanwhile, the private sector has urged authorities to immediately end load shedding. The FNCCI and the Confederation of Nepalese Industries (CNI) warned that 12-hour unannounced power cuts are severely disrupting industrial production and harming the business environment.