Energy crisis, apart from all these problems, has become the main hurdle for industrial development in Nepal. There is supply of hardly 800-900 MW, including imported electricity, even though the demand has crossed 1,100 MW while not even 500-600 MW is being supplied during the peak hours. New big, medium and small industries have not been opened inside the country due to energy shortage while even the existing ones cannot be operated in full capacity. A recent survey by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) shows that big and medium sized industries are only operating at 55-60 percent of their capacity, and they have to depend on their own diesel plants to even operate at that level. Cement and iron industries—that need to heat their furnaces round the clock—are facing problems in lack of adequate energy. Operation cost of the industries has risen as they have to generate thermal energy using expensive diesel and Nepali products are becoming expensive. Nepali products are losing even the international market as similar goods produced in competing nations are available at a cheaper rate and the ratio of export to import consequently has reached 1:7 which is the major reason for raising Nepal’s trade deficit.
It is essential to solve the problems currently miring the sector if we are to accelerate the pace of industrialization, boost export and maintain domestic self-dependence, and ensuring regular supply of energy is absolutely necessary for that. The decision by the Nepal Electricity Authority (NEA) to supply electricity to factories round the clock through dedicated feeders by charging double tariff, in this context, has to be taken positively. The industrialists were demanding that as it is a little cheaper than operating diesel plants on their own. But the electricity supplied to domestic consumers should not be unfairly cut in the name of round the clock supply of electricity to the industries. The decision will become truly successful only if that is ensured.
Source : Karobar Daily