Electricity inefficiency still forcing 64% of domestic industries to use generators: CNI

KATHMANDU: The Confederation of Nepalese Industries (CNI) has published the third issue of the Industrial Status Report. The study was prepared following detailed statistics of manufacturing industries and service sector in the second quarter of the current Fiscal Year 2078/79.

The CNI report has shown that industries utilized 71% of their total production capacity during the period. The report shows return among industries has increased by 27.1% in the second quarter of 2078/79 as compared to the same period of the previous fiscal year. According to the report, the capacity utilization of the business seems to be improving.

During the period under study, manufacturing industries paid an average of 9.4 percent interest rate (8.6 percent in the same period last year) and service industries paid an average of 9.1 percent. The study found that manufacturing industries borrowed 43.8 percent of their working capital from banks and financial institutions during the period. The manufacturing industry had borrowed 54.1 percent working capital from banks in the corresponding period of the previous year.

Of the participant industries in the study, 65.5 percent said they were preparing to add new investments. The study found that 64.4 percent of industries are still using generators due to power supply problems.