Nepal’s manufacturing sector has experienced relief as the Nepal Electricity Authority (NEA) began importing additional electricity from India, improving power availability for industries.
The Government of India recently approved the export of an additional 600 MW of electricity to Nepal through Indian power exchanges via the Muzaffarpur-Dhalkebar transmission line. The new agreement allows electricity supply during midnight to 4 AM, 6 AM to 5 PM, and 11 PM to midnight.
Previously, electricity imports were restricted to 6 AM to 6 PM, causing severe power shortages in Nepal’s industrial sector, with manufacturers facing up to 12-hour power cuts daily.
The Nepal Yarn Manufacturers Association (NYMA) issued a statement highlighting that industries have now begun receiving electricity regularly. The association noted that yarn manufacturers struggled with high production costs and reduced output due to power shortages, leading to increased unemployment and a decline in exports. The improved electricity supply has provided significant relief to entrepreneurs.
Pawan Golyan, president of NYMA, stated that manufacturers affiliated with the association export around 40,000 tons of yarn, making up more than 80 percent of total production. He emphasized the need for uninterrupted 24-hour electricity supply to support industrial growth.
Despite Nepal’s installed power capacity of 3,300 MW, domestic electricity generation currently stands at around 1,000 MW due to the ongoing dry season. The electricity shortage worsened when India limited power exports during Nepal’s peak demand hours, severely impacting manufacturing businesses.
Manufacturers in the Sunsari-Morang Industrial Corridor have reported an increase in electricity supply by up to six hours. Rakesh Surana, president of the Chamber of Industries, Morang, stated that load-shedding hours have been reduced from 12 to approximately six hours daily.
NEA confirmed that India has now allowed Nepal to import electricity for 16 hours a day, up from the previous 12 hours. Additionally, India has agreed to supply 54 MW of power through the Tanakpur-Mahendranagar transmission line from 6 AM to 6 PM.
