The Nepal Electricity Authority (NEA) has enforced nearly 12 hours of load shedding in industrial areas, causing a sharp decline in production. Industries report that their output has dropped by more than 50 percent due to power cuts.
The NEA has been unable to supply electricity to industries from 6 PM to 6 AM as power imports from India remain unavailable at night. Industrialists have accused NEA Managing Director Kulman Ghising of misleading the public despite ongoing power outages in the sector.
At a joint press conference on Sunday, the Cement Manufacturers Association of Nepal (CMAN), Steel Producers Association of Nepal, and Nepal Yarn Producers Association stated that load shedding has severely reduced production, increased costs, and led to higher prices of goods. They demanded an immediate end to the power cuts.
Industries such as cement, steel, and yarn, which require a 24-hour power supply, have faced rising production costs and significant output reductions. Former President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Pashupati Murarka, emphasized that power shortages have had a severe impact on industrial production. He stated that with 12-hour power cuts, industries have reduced production by over 50 percent and that the NEA is discouraging industrialists and businesses.
Industrialists claim the NEA is spreading false information. Raghunandan Maru, President of the CMAN, stated that the short supply of power has made it difficult for industries to operate. He accused the NEA of deception by disconnecting industrial power while claiming there was no issue. He added that industries are facing 12 to 14 hours of power cuts and that operating with diesel and generators has further increased costs.
Rising prices of cement and steel rods have fueled public criticism, with industrialists facing accusations of price manipulation. Hari Neupane, President of the Steel Producers Association, cited rising raw material costs, a stronger US dollar, and load shedding as the primary reasons for the price hike. He noted that industries with a production capacity of 300 tons are now producing only 125 tons due to power shortages.
Shashikant Agrawal, President of the Nepal Yarn Producers Association, criticized the NEA for disregarding industrial challenges. He stated that industries require a 24-hour power supply and that load shedding is severely impacting operations.
In 2018, the NEA officially declared Nepal load-shedding-free. However, industrialists say they still struggle to receive electricity based on demand, noting that load shedding has been a regular occurrence from mid-December to mid-June every year.
Former CMAN President Dhruba Thapa emphasized that industries cannot operate on a part-time basis. He stated that once machines start running, industries need to operate 24/7.
Industrialists argue that they comply with all tax, revenue, and regulatory requirements while contributing to employment, import substitution, exports, and local raw material use—yet they face power cuts. They also accused the NEA of bias against industries and urged the authority to resolve disputes over dedicated and trunk power lines, citing recommendations from a committee led by former Supreme Court Justice Girish Chandra Lal.
Previously, Nepal imported electricity from India for 20 hours daily. However, since Sunday, India has reduced supply to only 12 hours (6 AM to 6 PM), leading to 12-hour load shedding in Nepal’s industrial corridors.
Nepal’s run-of-the-river hydropower projects generate only 1,000 MW during the dry season, causing supply shortages. While over 700 MW of electricity is still being imported from India during the day, the lack of nighttime supply has worsened the crisis.
To address the issue, the Government of Nepal has formally requested India to provide 230 MW of power in the evening. The Ministry of Energy, Water Resources, and Irrigation has confirmed that diplomatic efforts are ongoing through the Indian Embassy to secure additional power.
Meanwhile, the private sector has urged authorities to end load shedding immediately. The FNCCI and the Confederation of Nepalese Industries (CNI) warned that unannounced 12-hour power cuts are severely disrupting industrial production and harming the business environment.
