The Nepal Electricity Authority (NEA) has disconnected electricity supply to six major industries after they failed to clear outstanding dues totaling over Rs 4 billion.
The NEA cut power lines to Jagdamba Steel, Reliance Spinning Mills, Shivam Cement, Ghorahi Cement, Arghakhanchi Cement Industry, and Triveni Spinning Mills. According to the NEA, these industries had not paid additional charges for the use of dedicated and trunk lines from Magh 2072 to Baisakh 2075.
Outstanding dues by company:
- Jagdamba Steel – Rs 1.60 billion
- Reliance Spinning Mills – Rs 753.7 million
- Shivam Cement – Rs 778.8 million
- Ghorahi Cement – Rs 508.5 million
- Arghakhanchi Cement – Rs 448.4 million
- Triveni Spinning Mills – Rs 321 million
NEA Executive Director Manoj Silwal said that despite repeated reminders, the industries refused to pay their dues, forcing the NEA to cut off their electricity supply. He added that the power lines will not be reconnected until payment begins.
Silwal further stated that NEA has provided a 28-installment payment option. “We are not asking them to pay the full amount immediately. If they pay the first installment, their power supply will be reconnected,” he said. NEA has even made arrangements for dues to be paid during Tihar holidays by opening payment counters.
Earlier, NEA had issued a 21-day notice warning of power disconnection for non-payment of dues. Following the notice issued on Ashoj 12, two new companies have started paying in installments. Previously, Ashok Steel and Hama Steels also began installment payments, while Hulas Steel, Laxmi Steels, and Sarbottam Cement have continued paying their dues.
Industries Claim NEA’s Action Unfair
The industries have strongly criticized the NEA’s decision. In a statement, the Group of Affected and Harassed Industries claimed that this was a fight against institutional authoritarianism. They have appealed to citizens and the youths involved in the recent Gen-Z movement for support.
They argue that:
- There is no evidence that the industries used dedicated premium lines.
- The NEA’s billing system lacks transparency and proof.
- Over 30 large industries are affected by the same issue, not just a few.
- The NEA scrapped the administrative review process unfairly after forcing industries to submit 5% of the disputed amount as a bank guarantee.
- The step is against legal procedure and threatens Nepal’s industrial future.
The industries warn that cutting electricity will shut down factories, pushing over 15,000 workers into unemployment. “Cutting power is not a legitimate debt recovery strategy. It will cause long-term damage to the national economy,” they said.
They have demanded that dues be calculated only after:
- Reviewing the Lal Commission report
- Analyzing TOD meter data from the load-shedding period
- Providing proof of service from NEA
The dispute between NEA and large industries over long-standing unpaid dues has been ongoing for several years, and both sides remain firm in their positions.
About the Author
