Industrialists Weigh Legal Action as NEA Cuts Power to 25 Firms Over Unpaid Dues

Defaulting industrialists whose electricity supply was cut off by the Nepal Electricity Authority (NEA) over unpaid dues for the usage of dedicated feeders and trunk lines have begun discussions on their next course of action — whether to collectively hand over their keys to the government or take the matter to court.

The NEA started disconnecting power to defaulting industries from October 21, after the payment deadline under the installment facility expired on October 19. As of last Friday, the state-owned power utility had disconnected electricity supply to 25 private industries with combined outstanding dues amounting to Rs 5.48 billion.

According to NEA spokesperson Rajan Dhakal, while 13 industries have started clearing their dues under the installment facility, 25 have failed to make contact or settle payments despite repeated reminders. He said the disconnected industries could have their lines restored immediately upon payment.

Among the industries with the largest outstanding dues are Jagdamba Steel, Reliance Spinning Mills, Triveni Spinning Mills, Shivam Cement, Ghorahi Cement, and Arghakhanchi Cement — together accounting for nearly 60 percent of the total arrears, the NEA said.

Reliance Spinning Mills’ Managing Director, Shashikant Agrawal, accused the NEA of attempting to extract payments unfairly. He said industrialists are holding internal discussions on whether to hand over the keys of their factories to the government in protest or file a case in court.

“All the industries have remained closed since the power disconnection,” Agrawal said. “We are debating whether to hand over the keys to the government or go to court. A decision will likely be made by Monday.” He alleged that the NEA arbitrarily cut off electricity to intimidate industries under the pretext of recovering charges for electricity they did not even consume.

Raghunandan Maru, president of the Cement Manufacturers Association, said discussions are ongoing among industrialists about collectively submitting their keys to the government. “We still believe the government will deliver justice. The NEA has demoralized the industrial sector, but we hope the government will hear our concerns,” he said. “Our next step will be taken jointly. Either the government must declare it no longer needs industries or ensure justice for us.”