Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Jagdamba Steel Pvt. Ltd., one of Nepal’s largest steel industries operating in the Bara-Parsa Industrial Corridor, has paid the first installment of its long-pending premium electricity dues for using dedicated and trunk lines during the load-shedding period. Following the payment, the electricity line—disconnected on Kartik 4—was reconnected on Wednesday evening.
According to the Nepal Electricity Authority (NEA), Jagdamba Steel had the highest outstanding dues among all industries under the dedicated and trunk line premium charge category. The company owed a total of Rs 1.60 billion (Rs 1,601.8 million) to NEA for premium consumption between Magh 2072 and Baisakh 2075.
As per the NEA’s agreement with industrial consumers, the dues have been divided into 28 installments, and Jagdamba Steel has paid Rs 57.2 million (Rs 5 crore 72 lakh 9 thousand) as the first installment.
NEA officials confirmed that after the payment, Jagdamba’s disconnected electricity supply was restored, enabling the resumption of full industrial operation. The authority has been actively engaging with industrial consumers to recover long-overdue payments from the dedicated and trunk line categories, which were originally imposed as premium charges for uninterrupted electricity supply during Nepal’s severe load-shedding years.
Jagdamba’s settlement marks a crucial step toward resolving long-standing financial disputes between the NEA and large industrial consumers. NEA has stated that similar payments from other industries are expected soon, as non-payment of dues has led to widespread power disconnections in several major factories within the Bara-Parsa industrial belt.
The NEA’s initiative to recover these dues is part of a broader strategy to improve financial discipline, strengthen power distribution reliability, and ensure fair tariff enforcement across Nepal’s industrial sector.
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