Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Two major industrial firms based in Simara, Bara — Hulas Steel Industries and Ashok Steel Industries — have begun clearing their long-overdue premium electricity tariff dues owed to the Nepal Electricity Authority (NEA) for power consumed through dedicated and trunk line connections.
According to NEA Executive Director Manoj Silwal, Hulas Steel Industries has started paying its outstanding premium electricity charges amounting to Rs 141.2 million (14 crore 12 lakh) for the period between Magh 2072 and Baisakh 2075. The company received NEA approval to clear the dues in 28 monthly installments, each amounting to Rs 5.043 million (50 lakh 43 thousand).
“Hulas Steel has already submitted the first installment this Friday,” said Executive Director Silwal, confirming that the industrial group had officially initiated the repayment plan after nearly a decade-long delay in settling the premium electricity fees.
Similarly, another major steel producer in the Simara industrial corridor, Ashok Steel Industries, has also cleared its first installment toward its Rs 175.8 million (17 crore 58 lakh) outstanding dues. The company was granted the same 28-installment repayment facility and has deposited its first payment of Rs 6.3 million (63 lakh) with NEA.
Background: Long-Standing Industrial Dues Under NEA’s Dedicated Line Scheme
Under NEA’s dedicated and trunk line electricity system, high-consumption industrial entities receive prioritized power supply to ensure uninterrupted production, often at a premium tariff rate higher than normal industrial users. However, several industries had failed to clear their dues from the period of 2015 to 2018, when power supply disruptions were frequent and billing disputes arose during the nationwide load-shedding phase.
The issue gained renewed attention after the NEA’s financial audit flagged unrecovered premium tariff amounts as a major compliance concern. In response, the NEA’s board approved a structured installment payment mechanism to recover arrears without halting industrial operations.
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