Kathmandu: After no company submitted a proposal in response to the tender called by the Nepal Electricity Authority to import 100 megawatts of electricity from India, the Authority has extended the deadline by another five days.
According to the notice published on February 13, the deadline for submitting bids was set for 12:00 noon on February 22. However, as not a single proposal was received within the stipulated time, the Authority extended the deadline to February 27.
This incident has once again drawn controversy over the Authority’s internal decision-making process, its understanding of the market, and its “ceiling rate” policy.
Ceiling of INR 6.90, but the market remains silent
The Authority had invited sealed bids to import up to 100 megawatts of electricity from April 1 to May 31, 2026, on a round-the-clock basis.
However, the tender notice itself specified that the maximum bid price per unit could not exceed INR 6.90.
Previously, the Board of Directors had adopted a policy stating that the tariff for electricity imported from India would be determined through competition, without fixing a rate in advance. In that context, Managing Director Hitendra Dev Shakya setting a “ceiling rate” and issuing the tender has been criticized as a move contrary to the board’s decision.
It has been analyzed that this may be the reason Indian companies did not submit proposals.
The previous tender also failed.
On January 19, Executive Director H.D. Shakya had also issued a tender for the February–March and April–May periods, setting a maximum rate of INR 6.90 per unit.
That tender process also failed after no company participated.
There is already a background of controversy when the Authority previously issued tenders with a fixed rate, as competition did not materialize.
In such a situation, repeating the same approach has led to accusations that market signals have once again been ignored.
Old Decision, New Controversy
In mid-December to mid-January, the Board of Directors had decided that no rate would be fixed in advance in tenders for electricity imports from India.
However, by not implementing that decision and instead reintroducing a price ceiling, the administration has appeared to lack coordination between policy and execution within the Authority.
When Shakya was serving as Managing Director, a decision was made on September 1 to import electricity at a rate of INR 6.65 per unit. There has also been controversy regarding the implementation of that decision and the subsequent procedures.
Former Managing Director Manoj Silwal had signed a purchase agreement for 100 megawatts at a rate of INR 6.95 per unit, and electricity is currently being imported at that same rate.
Market Reality or Administrative Rigidity?
The question has now become even more serious —
If electricity is available at less than INR 6.90 per unit, why did no company participate in the tender—twice?
And if the actual market rate is higher, what is the justification for imposing an artificial ceiling in the tender itself?
Although extending the deadline appears to have temporarily saved the process, it does not seem to have addressed the underlying problem.
Energy sector experts state-
that in a competitive process, the market itself should be allowed to determine the price. Otherwise, there is a risk that the tender will remain limited to paperwork.
If no proposal is received even by February 27, what step will the Authority take?
Will the price ceiling be removed, or will the process once again move forward under a new pretext?
This issue, which is linked to energy supply and institutional credibility, has now become not just an administrative procedure but a test of policy clarity.
In this regard, Tharka Bahadur Thapa, Director of the Electricity Trading Department of the Authority, did not wish to come into contact.
However, Rajan Dhakal, spokesperson for the Authority, acknowledged that the deadline was extended after no proposals were received.
Jalasarokar
