Kathmandu, May 14
The private sector has hailed the tireless efforts of Nepal Electricity Authority that resulted in elimination of load-shedding in the industrial area from today.
The NEA had announced that the country had become load-shedding-free from today after ending the three hours of power cuts that its industrial clients had had to endure until now.
Issuing a press statement, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) said that the industrial sector will benefit from the regular supply of electricity from today, which will increase the capacity utilisation of industries, bring down the cost of production and ultimately boost industrial output.
Industries were facing rolling blackouts since the last decade due to mismatch in demand and supply of electricity. Industries were operated for certain hours through diesel generators, which resulted in escalation of production cost. Moreover, the power cuts had an adverse impact on the lifespan of the machinery in the industries.
Before eliminating load-shedding from industrial areas, the power utility had minimised the load-shedding to three hours-a-day. FNCCI has expressed its belief that the share of manufacturing in gross domestic product would take a leap from existing dismal 5.4 per cent along with reliability in power supply.
NEA had announced elimination of load-shedding for domestic users from mid-April 2017.
FNCCI, in its statement, has said that the assurance of regular power supply will create enabling environment for expansion of industries and businesses.
Since the industrial load-shedding was minimised from 2016, industrial output has gradually picked up, according to a study carried out by the Nepal Rastra Bank. The study carried out in major industrial blocks, namely, Kathmandu, Biratnagar, Birgunj, Janakpur, Pokhara, Butwal, Nepalgunj and Dhangadi had revealed that the average capacity utilisation of industries in fiscal 2016-17 stood at 57.3 per cent against 48.2 per cent in 2015-16. Industrial GDP in fiscal 2016-17 recorded double digit growth, according to the central bank report.
As per NEA, 80 per cent of the total electricity supplied is being consumed by domestic users and industrial sector consumes only eight per cent of total electricity.
Written by Sandeep
This news first appeared on https://thehimalayantimes.com/business/private-sector-hails-elimination-of-load-shedding/ under the title “Private sector hails elimination of load-shedding”. Bolchha Nepal is not responsible or affiliated towards the opinion expressed in this news article.