First Business News Portal in English from Nepal
KATHMANDU: In a significant stride towards enhancing public participation, the Nepal Electricity Authority (NEA) has taken decisive measures to initiate the issuance of primary shares to the general public, marking a pivotal moment in the organization’s trajectory.
Addressing the media during a press conference held on a Thursday, Kulman Ghising, the adept Managing Director of NEA, unveiled the forward momentum achieved in propelling the primary share issuance procedure.
Ghising expounded on the meticulous process, detailing the comprehensive evaluation of the authority’s tangible assets, complemented by an esteemed credit rating of AA+ accorded by ICRA Nepal.
Ghising elucidated, “With the culmination of the third financial restructuring endeavor, we have embarked on the journey of offering shares to the public.”
Meanwhile, a nuanced glance at NEA’s fiscal performance reveals a decline in profits amounting to Rs 1.04 billion in the fiscal year 2022/23, juxtaposed against the preceding fiscal year’s figures.
The financial dossier of NEA attests to a net profit of Rs 12.33 billion for the preceding fiscal year, registering a decline from the Rs 13.37 billion amassed in the antecedent fiscal year.
Ghising attributed this downturn in profits to a conspicuous diminution in electricity generation during the dry spell of the last fiscal year. He expounded that the authority’s operational costs burgeoned due to a compelled surge in electricity imports necessitated by a decline in domestic electricity production.
In the backdrop of the government’s fervent pursuit of augmenting revenues from electricity exports, NEA’s upper echelon candidly acknowledged the substantial expenses incurred in electricity imports.
Despite facing criticism from the private sector concerning a purported underutilization of approximately 500 MW of electricity owing to NEA’s perceived indifference, the authority appears reticent about divulging data, presumably to shield its reputation.
NEA’s own data showcases an impressive surge in the installed electricity generation capacity, soaring to an impressive 2,822 MW within the nation. Presently, the pinnacle of domestic electricity demand has scaled to a commendable 1,900 MW.
In a bilateral accord, India has granted Nepal the liberty to vend a maximum of 452 MW of electricity within the Indian market.
Pertinently, NEA has fervently sought India’s endorsement to export an impressive 1,073 MW of electricity, a collective output from 19 hydroelectric ventures. Regrettably, Ghising noted the absence of a definitive decision from Indian authorities on this matter thus far.
Ghising articulated NEA’s unwavering commitment to fortify the electricity distribution network through strategic implementation of requisite transmission lines and interlinked infrastructure.
This strategic undertaking is tailored to sustain the burgeoning electricity demand of eleven urban centers until the horizon of 2050.
Ghising proudly remarked that a commendable 95 percent of the nation’s households have now been electrified, underscoring the remarkable progress achieved in expanding access to electricity.
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