Outage takes toll on water supply
ekantipur, 12-Jan-09
Kathmandu Upatyaka Khanepani Limited (KUKL), the sole supplier of drinking water in the Valley is distributing 10 million litres of water less than the usual every day volume due to lack of electricity to pump ground water.
The daily demand of drinking water inside the Valley is 230 million litres, whereas KUKL is now supplying only 110 million litres of water every day, said Richard Austin, managing director of KUKL. It used to supply 120 million litres water before the 16-hour-load-shedding schedule was introduced.
With the onset of dry season, the Valley has to depend on ground water sources for 60 percent of its drinking water needs. Water pumps are used to pump water from underground sources, according to KUKL.
Officials said, increased load shedding has hit Gongabu area harder than other places. The production of drinking water from pumps has decreased by two-thirds in Gongabu. There are ten pumps in operation in the area and they used to produce 90.5 million litres of water daily. This volume has now gone down.
Places like Kirtipur, Gokarna and Mulpani are also facing problems producing drinking water from underground sources due to load shedding. KUKL operates 69 tube wells in the capital .
According to Chandra Lal Nakarmi, director at KUKL, smooth supply of drinking water to households has also been seriously affected due to power cuts.
Nakarmi said, KUKL is operating five diesel-run generators to generate electricity for the production and supply of drinking water to about 160,000 consumers in Kathmandu. "The operation cost has significantly increased with the use of generators," said Nakarmi. Meanwhile, KUKL is planning to bring 12 diesel-run generators to carry out smooth supply of drinking water to households even during load shedding hours. Austin said, the work of installing generators at places that produce more water is going on.
"We have demanded funds from the Ministry of Physical Planning and Works to operate diesel-run generators," he said.
Tuesday, January 13, 2009
Monday, January 12, 2009
Public shares issued increases
Public shares issued increases
ekantipur, 11-Jan-09
PRITHVI MAN SHRESTHA
Despite sluggishness in the share market, with the stock index sharply declinging from 1,100 points to around 700 points over the last four months, the number of financial institutions seeking share issuance approval has continuously risen.
As many as 16 banks and financial institutions received approval from the Security Board of Nepal (SEBON) to issue shares worth Rs 4.2 billion during the first six months of current fiscal year. The SEBON granted approval for 19 companies to issue share worth Rs. 2.71 billion during the same period last year.
According to SEBON, 30 other companies are already on the waiting list to receive approval for floating shares worth Rs. 7.05 billion.
SEBON director Niraj Giri said that the companies were not hesitating to issue shares despite the recent downturn in the country's stock market because most of the applicants were banks and financial institutions.
"As people trust in banks, the financial sector remains strong, and we expect people to continue investing in their shares," he said.
All the companies receiving approval so far this year were financial institutions, and most that received such approval last year were also financial institutions.
Amongst the banks, Siddharth Bank received approval on January 7 of this year to issue Initial Public Offerings (IPOs) worth Rs. 300 million. Three other new banks, Citizen, Prime and Sunrise, as well as Vibor Development Bank, are also awaiting SEBON approval to issue IPOs worth Rs. 1.22 billion.
"The response to their IPOs will also show the confidence of investors' in the share market," Giri said.
The number and amount of shares issued increased last year, and the trend is continuing this year too.
According to SEBON, as many as 64 companies issued shares worth Rs. 10.66 billion last year. Likewise, 46 companies are expected to issue shares worth Rs. 11 billion this year.
Giri said that number of shares issued increased as the Nepal Rastra Bank (NRB) directed all financial institutions to increase their capital base. "So, they have been issuing various types of shares to increase their capital base," he added.
As per the NRB directive, the banks are required to increase their paid up capital to Rs. 2 billion, development banks to Rs. 640 million and finance companies to Rs. 200 million by 2011, for new banks, and 2014 for older banks. The directives are being met, proved by the fact that most of the older financial institutions have been issuing right and debenture shares and new ones IPOs.
Among the 16 financial institutions receiving approval for share issuance this year, 13 are currently going to issue right shares.
As many as 49 companies received approval for issuing right shares, 18 companies for IPOs, five for debenture and 12 for bonus shares in the last fiscal year. Most of them are financial institutions.
President of Nepal Bankers' Association, Radhesh Panta, holds the view that people trust in the banking sector because of its transparency, which was the main reason behind large investment in the share market recently.
"The growth in the number of financial institutions and their compulsion to go public, as per the NRB regulation, is fueling the investment in shares," he said.
But, former SEBON chairman Dr. Chiranjeevi Nepal claimed that the easier provisions made through five regulations introduced during his tenure in the office mainly contributed to the high rise in the issuance of shares last year.
ekantipur, 11-Jan-09
PRITHVI MAN SHRESTHA
Despite sluggishness in the share market, with the stock index sharply declinging from 1,100 points to around 700 points over the last four months, the number of financial institutions seeking share issuance approval has continuously risen.
As many as 16 banks and financial institutions received approval from the Security Board of Nepal (SEBON) to issue shares worth Rs 4.2 billion during the first six months of current fiscal year. The SEBON granted approval for 19 companies to issue share worth Rs. 2.71 billion during the same period last year.
According to SEBON, 30 other companies are already on the waiting list to receive approval for floating shares worth Rs. 7.05 billion.
SEBON director Niraj Giri said that the companies were not hesitating to issue shares despite the recent downturn in the country's stock market because most of the applicants were banks and financial institutions.
"As people trust in banks, the financial sector remains strong, and we expect people to continue investing in their shares," he said.
All the companies receiving approval so far this year were financial institutions, and most that received such approval last year were also financial institutions.
Amongst the banks, Siddharth Bank received approval on January 7 of this year to issue Initial Public Offerings (IPOs) worth Rs. 300 million. Three other new banks, Citizen, Prime and Sunrise, as well as Vibor Development Bank, are also awaiting SEBON approval to issue IPOs worth Rs. 1.22 billion.
"The response to their IPOs will also show the confidence of investors' in the share market," Giri said.
The number and amount of shares issued increased last year, and the trend is continuing this year too.
According to SEBON, as many as 64 companies issued shares worth Rs. 10.66 billion last year. Likewise, 46 companies are expected to issue shares worth Rs. 11 billion this year.
Giri said that number of shares issued increased as the Nepal Rastra Bank (NRB) directed all financial institutions to increase their capital base. "So, they have been issuing various types of shares to increase their capital base," he added.
As per the NRB directive, the banks are required to increase their paid up capital to Rs. 2 billion, development banks to Rs. 640 million and finance companies to Rs. 200 million by 2011, for new banks, and 2014 for older banks. The directives are being met, proved by the fact that most of the older financial institutions have been issuing right and debenture shares and new ones IPOs.
Among the 16 financial institutions receiving approval for share issuance this year, 13 are currently going to issue right shares.
As many as 49 companies received approval for issuing right shares, 18 companies for IPOs, five for debenture and 12 for bonus shares in the last fiscal year. Most of them are financial institutions.
President of Nepal Bankers' Association, Radhesh Panta, holds the view that people trust in the banking sector because of its transparency, which was the main reason behind large investment in the share market recently.
"The growth in the number of financial institutions and their compulsion to go public, as per the NRB regulation, is fueling the investment in shares," he said.
But, former SEBON chairman Dr. Chiranjeevi Nepal claimed that the easier provisions made through five regulations introduced during his tenure in the office mainly contributed to the high rise in the issuance of shares last year.
Saturday, January 10, 2009
Power outage to hit 16 hrs from Sunday
Power outage to hit 16 hrs from Sunday
ekantipur, 9-Jan-09
PRAGATI SHAHI
Nepal Electricity Authority (NEA) has announced 16 hours load-shedding a day from Sunday, a jump of four hours from the present situation.
Sher Singh Bhat, director of NEA's Systems Operations Department on Friday said, “Due to the receding water level in run of rivers and Kulekhani Reservoir, NEA is not able to meet the demand and there is no option but to increase the power outage time,”.
The total power outage will be increased to 108 hours a week starting Sunday.
However, in order to support the operation of industries in the country, the government has decided to provide electricity to industrial estates declared by the government including Balaju, Pokhara, Bhirahawa, Butwal, Dharan and Biratnagar among others through separate feeders.
According to Bhat, all industrial estates that are under the government will be supplied electricity regularly for five days while the remaining two days of the week will be totally without electricity.
“If a particular feeder is used to supply to both the general public and industrial units, the factories will not get this facility,” Bhat said.
Bhat hopes there will be no further increase after the announcement of the 16 hour-load-shedding per day. “This is the climax of load-shedding for this winter,” he said. As per the new schedule, the NEA will cut power for 16 hours a day for six days a week and 12 hours on one particular day in the week.
He said, the water level in the rivers that earlier supplied 255-MW has now decreased to 230-MW.
Bhat said this schedule will apply in most parts of the country including Kathmandu and other major cities - Biratnagar, Pokhara, and Butwal.
The power outage in Hetauda-Birgunj area will be about 84 hours a week (12 hours a day) and it will be around 40 hours a week in some western districts.
The current morning, day/night and evening time power demand is 550 -MW, 480 -MW and 800-MW respectively. Likewise, supply during the morning, day/night and evening is 260-MW, 260-MW and 326-MW respectively.
According to him, the 70 MW Mid-Marshyangdi Hydro Electric Project will generate electricity in the next two weeks and the government is working to import 80-MW from India through Koshi-Kattaiya transmission line by mid February.
“If the government succeeds in importing the 80-MW from India and the Mid Marsyangdi starts to generate electricity then load shedding hrs will be substantially decreased in the coming months,” said Bhat.
ekantipur, 9-Jan-09
PRAGATI SHAHI
Nepal Electricity Authority (NEA) has announced 16 hours load-shedding a day from Sunday, a jump of four hours from the present situation.
Sher Singh Bhat, director of NEA's Systems Operations Department on Friday said, “Due to the receding water level in run of rivers and Kulekhani Reservoir, NEA is not able to meet the demand and there is no option but to increase the power outage time,”.
The total power outage will be increased to 108 hours a week starting Sunday.
However, in order to support the operation of industries in the country, the government has decided to provide electricity to industrial estates declared by the government including Balaju, Pokhara, Bhirahawa, Butwal, Dharan and Biratnagar among others through separate feeders.
According to Bhat, all industrial estates that are under the government will be supplied electricity regularly for five days while the remaining two days of the week will be totally without electricity.
“If a particular feeder is used to supply to both the general public and industrial units, the factories will not get this facility,” Bhat said.
Bhat hopes there will be no further increase after the announcement of the 16 hour-load-shedding per day. “This is the climax of load-shedding for this winter,” he said. As per the new schedule, the NEA will cut power for 16 hours a day for six days a week and 12 hours on one particular day in the week.
He said, the water level in the rivers that earlier supplied 255-MW has now decreased to 230-MW.
Bhat said this schedule will apply in most parts of the country including Kathmandu and other major cities - Biratnagar, Pokhara, and Butwal.
The power outage in Hetauda-Birgunj area will be about 84 hours a week (12 hours a day) and it will be around 40 hours a week in some western districts.
The current morning, day/night and evening time power demand is 550 -MW, 480 -MW and 800-MW respectively. Likewise, supply during the morning, day/night and evening is 260-MW, 260-MW and 326-MW respectively.
According to him, the 70 MW Mid-Marshyangdi Hydro Electric Project will generate electricity in the next two weeks and the government is working to import 80-MW from India through Koshi-Kattaiya transmission line by mid February.
“If the government succeeds in importing the 80-MW from India and the Mid Marsyangdi starts to generate electricity then load shedding hrs will be substantially decreased in the coming months,” said Bhat.
Thursday, January 08, 2009
Inflation reached 14.1pc in Mangsir
Inflation reached 14.1pc in Mangsir
ekantipur, 7-Jan-09
The inflation for the month of Mangsir (mid-November to mid-December 2008) was 14.1 percent a sharp increase compared to last Mangsir when it was 5.7 percent, Nepal Rastra Bank said in a statement
on Wednesday.
The inflation among food and beverages was 17.2 percent during this period as against 7.1 percent in the corresponding month last year. The highest inflation among foodstuff was in sugar and sugar-based foods which was 35.9 percent. This figure stood at 17 percent last year. Similarly inflation of ghee and edible oils was 26.2 percent as against 12.5 percent last year. Likewise inflation of rice and rice rice-based foodstuff was 21.8 percent compared to 12.5 percent last year.
Inflation of non-food items and services (including transport, communication, household goods, tobacco) stood at 10.8 percent compared to 4.1 percent in the same month last year. Region-wise inflation was highest in Kathmandu where it stood at 16.2 percetn, and in 13.6 percent and 13.1 percent in the hiss and the Terai respectively. These figures stood at 4.9, 5.3 and 6.2 percent during the same period last year.
ekantipur, 7-Jan-09
The inflation for the month of Mangsir (mid-November to mid-December 2008) was 14.1 percent a sharp increase compared to last Mangsir when it was 5.7 percent, Nepal Rastra Bank said in a statement
on Wednesday.
The inflation among food and beverages was 17.2 percent during this period as against 7.1 percent in the corresponding month last year. The highest inflation among foodstuff was in sugar and sugar-based foods which was 35.9 percent. This figure stood at 17 percent last year. Similarly inflation of ghee and edible oils was 26.2 percent as against 12.5 percent last year. Likewise inflation of rice and rice rice-based foodstuff was 21.8 percent compared to 12.5 percent last year.
Inflation of non-food items and services (including transport, communication, household goods, tobacco) stood at 10.8 percent compared to 4.1 percent in the same month last year. Region-wise inflation was highest in Kathmandu where it stood at 16.2 percetn, and in 13.6 percent and 13.1 percent in the hiss and the Terai respectively. These figures stood at 4.9, 5.3 and 6.2 percent during the same period last year.
16-hr-day power cut to greet nation soon
16-hr-day power cut to greet nation soon
ekantipur, 7-Jan-09
Pragati shahi
Citing significant differences in the demand and supply of power, Nepal Electricity Authority (NEA) is planning to increase the load shedding hours to 16 hours a day in a couple of days, much earlier than projected.
Earlier, NEA authorities had predicted this increase in early February after the water volume in rivers started to recede significantly. Now, electricity consumers in the country are facing daily load shedding up to 12 hours.
According to an official at NEA System Operations Department of NEA, the load shedding hours are likely to jump further after power generation from Kali Gandaki ‘A’, decreased by more than 60 percent. “The 144-MW Kali Gandaki ‘A’ is generating only 60 MW now a days and power generation is expected to decrease to 50-MW in the coming days,” a source added. Likewise, the 60-MW Khimti Hydro Electric Project is only generating 18-MW.
Meanwhile, the water level at Kulekhani Reservoir is at its lowest ever.
“NEA is doing homework to increase load shedding to 16 hours a day in a couple of days, though the official announcement date has not yet been decided,” according to the source. Officials at the Systems Operation Department said they had started to increase the power outage to 16 hours a day from Thursday as the deficit of units is too high to handle.
According to NEA, the daily demand of power is 500-MW in the day time and 800-MW in evening. However, the supply is only 320-MW including the power imported from India.
On Tuesday, the water level went down by 30-35 centimetres in Kulekhani Reservoir while the level of water to be used from the Reservoir should be only 10 centimetres to generate electricity from Kulekhani till April.
ekantipur, 7-Jan-09
Pragati shahi
Citing significant differences in the demand and supply of power, Nepal Electricity Authority (NEA) is planning to increase the load shedding hours to 16 hours a day in a couple of days, much earlier than projected.
Earlier, NEA authorities had predicted this increase in early February after the water volume in rivers started to recede significantly. Now, electricity consumers in the country are facing daily load shedding up to 12 hours.
According to an official at NEA System Operations Department of NEA, the load shedding hours are likely to jump further after power generation from Kali Gandaki ‘A’, decreased by more than 60 percent. “The 144-MW Kali Gandaki ‘A’ is generating only 60 MW now a days and power generation is expected to decrease to 50-MW in the coming days,” a source added. Likewise, the 60-MW Khimti Hydro Electric Project is only generating 18-MW.
Meanwhile, the water level at Kulekhani Reservoir is at its lowest ever.
“NEA is doing homework to increase load shedding to 16 hours a day in a couple of days, though the official announcement date has not yet been decided,” according to the source. Officials at the Systems Operation Department said they had started to increase the power outage to 16 hours a day from Thursday as the deficit of units is too high to handle.
According to NEA, the daily demand of power is 500-MW in the day time and 800-MW in evening. However, the supply is only 320-MW including the power imported from India.
On Tuesday, the water level went down by 30-35 centimetres in Kulekhani Reservoir while the level of water to be used from the Reservoir should be only 10 centimetres to generate electricity from Kulekhani till April.
Wednesday, January 07, 2009
Pro Bio-Tech to go public
Pro Bio-Tech to go public
ArthaExpress, 7-Jan-09
Pro Bio-Tech Industries is planning to go public within next two years. “It is planning to be the first public limited company in agriculture sector,” said Ananda Bagaria, director of Pro Bio-Tech Industries — under the Nimbus Group — that has recently received international quality management certification ISO 9001: 2000 for its commitment to quality control, productivity and service delivery process. It is also the only Nepal Standard Mark certified animal feed manufacturing industry in Nepal.
“The industry has a modern and state of the art testing facilities for feed and feed supplements to ensure the quality of the products. Our commitment to quality consists of a comprehensive set of initiatives that address issues surrounding animal nutrition, animal health, technical and non technical support services,” he added.
“Pro Bio-Tech with its annual turnover of approximately Rs 2 billion at present plans to be a Rs five-billion turnover company by 2013,” Bagaria said adding that it aims to bring agri-revolution through modernisation and commercialisation of agriculture sector — that generates 60 per cent to 70 per cent of employment — in the country.
Poultry Industry contributes four per cent to annual GDP and eight per cent to agricultural GDP. There are 101 feed-industries in Nepal and Pro Bio-Tech — the leading animal feed manufacturing company — has 15 to 16 per cent market share. “It also exports its Shakti brand of pellet feed — that is the first and only animal feed in Nepal to have NS Mark — to India,” he informed.
“Shakti brand of pellet feed is the first and only one poultry feed exported to India,” said the director of Birgunj-based company that has a daily production capacity of 200 Metric Tonne (MT) per day.
“We are soon expanding the capacity to 450 MT,” promised the young entrepreneur, who dreams of organising a national agri summit in near future.
Pro Bio-Tech Industries has more firsts to its credits. Its also first company in Nepal to have vertical feed storage facility Silo that has a storage capacity of 25,000 MT. “The industry has also the first soya solvent extraction plant,” Bagaria added.
ArthaExpress, 7-Jan-09
Pro Bio-Tech Industries is planning to go public within next two years. “It is planning to be the first public limited company in agriculture sector,” said Ananda Bagaria, director of Pro Bio-Tech Industries — under the Nimbus Group — that has recently received international quality management certification ISO 9001: 2000 for its commitment to quality control, productivity and service delivery process. It is also the only Nepal Standard Mark certified animal feed manufacturing industry in Nepal.
“The industry has a modern and state of the art testing facilities for feed and feed supplements to ensure the quality of the products. Our commitment to quality consists of a comprehensive set of initiatives that address issues surrounding animal nutrition, animal health, technical and non technical support services,” he added.
“Pro Bio-Tech with its annual turnover of approximately Rs 2 billion at present plans to be a Rs five-billion turnover company by 2013,” Bagaria said adding that it aims to bring agri-revolution through modernisation and commercialisation of agriculture sector — that generates 60 per cent to 70 per cent of employment — in the country.
Poultry Industry contributes four per cent to annual GDP and eight per cent to agricultural GDP. There are 101 feed-industries in Nepal and Pro Bio-Tech — the leading animal feed manufacturing company — has 15 to 16 per cent market share. “It also exports its Shakti brand of pellet feed — that is the first and only animal feed in Nepal to have NS Mark — to India,” he informed.
“Shakti brand of pellet feed is the first and only one poultry feed exported to India,” said the director of Birgunj-based company that has a daily production capacity of 200 Metric Tonne (MT) per day.
“We are soon expanding the capacity to 450 MT,” promised the young entrepreneur, who dreams of organising a national agri summit in near future.
Pro Bio-Tech Industries has more firsts to its credits. Its also first company in Nepal to have vertical feed storage facility Silo that has a storage capacity of 25,000 MT. “The industry has also the first soya solvent extraction plant,” Bagaria added.
Monday, January 05, 2009
Nepali property expo in US draws diaspora
Nepali property expo in US draws diaspora
ArthaExpress, 5-Jan-09
Nepali housing companies and builders were successful in selling flats here to the Nepali diaspora in the US.
“People there were mainly interested in investing in real estate,” Rajan Karmacharya, managing director of First Kathmandu Pvt Ltd and organiser of the Nepal Property Expo 2008, said adding, “As cash transactions were not allowed, we had good bookings of flats and apartments of around Rs 2,500 million.
The expo concluded in New York on a grandly successful note. “There were around 2,000 visitors who were very interested in buying flats, apartments and investing in real estate,” he said adding,”We are planning an expo in Australia.”
Twelve companies, Civil Homes Pvt Ltd, Guna Colony, Oriental Builders Pvt Ltd, Varun Developers Pvt Ltd, Kohinoor Hill Housing Pvt Ltd, Stupa Housing Pvt Ltd, Echo Housing Pvt Ltd, Maharjan Builders Pvt Ltd, Silver Valley, Karmacharya Awas Company Pvt Ltd, Guna Cooperative Ltd and America’s Chettri and Association Incorporate were the participants in the expo.
According to the organisers, houses with a value of Rs 25 lakh to flats costing Rs 16.5 million were kept in the exhibition for sale. The bookings were beyond expectations and the esponse was overwhelming.
The expo — from December 27 to 28 — was organised with the joint effort of Himalayan Herbal Garden Inc, America and Guna Colony.
ArthaExpress, 5-Jan-09
Nepali housing companies and builders were successful in selling flats here to the Nepali diaspora in the US.
“People there were mainly interested in investing in real estate,” Rajan Karmacharya, managing director of First Kathmandu Pvt Ltd and organiser of the Nepal Property Expo 2008, said adding, “As cash transactions were not allowed, we had good bookings of flats and apartments of around Rs 2,500 million.
The expo concluded in New York on a grandly successful note. “There were around 2,000 visitors who were very interested in buying flats, apartments and investing in real estate,” he said adding,”We are planning an expo in Australia.”
Twelve companies, Civil Homes Pvt Ltd, Guna Colony, Oriental Builders Pvt Ltd, Varun Developers Pvt Ltd, Kohinoor Hill Housing Pvt Ltd, Stupa Housing Pvt Ltd, Echo Housing Pvt Ltd, Maharjan Builders Pvt Ltd, Silver Valley, Karmacharya Awas Company Pvt Ltd, Guna Cooperative Ltd and America’s Chettri and Association Incorporate were the participants in the expo.
According to the organisers, houses with a value of Rs 25 lakh to flats costing Rs 16.5 million were kept in the exhibition for sale. The bookings were beyond expectations and the esponse was overwhelming.
The expo — from December 27 to 28 — was organised with the joint effort of Himalayan Herbal Garden Inc, America and Guna Colony.
There will be darkness ahead
There will be darkness ahead: And you thought 12 hours a day was bad
NepaliTimes, Issue #432 (2-Jan-09 to 8-Jan-09)
DEWAN RAI
There is no greater proof of failure of governance since the restoration of democracy in 1990 than the unprecedented 12-hour power cuts that the country is going through this winter.
And worse is yet to come. If it doesn't rain soon, power cuts will go up to 16 hours a day by mid-February. If nothing is done, these crippling cuts will last at least for another four winters.
At present Nepal's peak evening power demand has risen to 770MW, but production is only 286MW. Peak power generation from the Kulekhani system is down because the reservoir is nearly empty. All of Nepal's run-of-the-river schemes are generating half capacity because of low flow. The 60MW that used to come from India every winter is cut because the Kosi flood washed away the transmission line.
The Middle Marsyangdi that was inaugurated last month by Prime Minister Dahal will only generate 25MW, but only from spring. Power demand is rising at 10MW, but no new major capacity has been added to the grid since the 144 Kali Gandaki came on stream in 2003.
The surprising thing about this crisis is that it shouldn't have been a surprise. Planners and experts have been warning about the growing gap between demand and supply for nearly a decade. (See: 'Loadshedding till 2015' (#289). But successive governments did nothing. According to NEA, the 10th Five-Year Plan target was to produce 314MW but only 40 MW was generated over the period.
"This crisis will continue and we have to be prepared for up to 16 hours of daily load shedding," warns Jugal Kishor Shah at the NEA. The prolonged power outage has crippled industry, with an 80 per cent fall in production. Already crippled by militant unionism, most manufacturing, businesses and hotels are on the verge of closure.
After the announcement of national power emergency on 25 December, the government has come up with National Energy Crisis Working Plan. It plans to re-negotiate Power Purchase Agreement rates for private owners that generate up to 25MW. Projects of up to 50MW do not need EIA or the consent of the forest ministry. It plans to distribute Compact Fluorescent Lamps (CFL) all over the country for which the government has allotted Rs 100 million.
The plan also allows a 10-year income tax waiver for hydro projects that are commissioned in the next two years. And, most controversial of all, the cabinet has approved the installation of diesel plants to generate 200MW before next winter and has called for proposals from the private sector.
The government would import 30MW from Tanakpur, India, beginning Thursday. Critics say the government is reacting in knee-jerk fashion, and hasn't pursued more immediate do-able options. Electricity pilferage amounts to 30 per cent of the generated capacity. Reducing that by even half would be the same as adding another Middle Marsyangdi.
If distribution is handed over to local communities, theft goes down as shown by Mugling which reduced pilferage from 36 per cent to 9 per cent after distribution was handed over.
NEA has also never looked into demand side interventions to control energy use through pricing mechanisms such as time-of-day tariffs. And one immediate solution would be to reduce the price of diesel from Rs 59 to Rs 45 so that industries will find it viable to generate power from their captive plants and even sell it to the grid.
However, the water resources ministry is sitting on nearly 3,000MW worth of licences for hydro power projects all over the country.
The government's record of running existing diesel plants are not good. The 39MW Duhabi plant and the 15MW one in Hetauda don't generate even 20MW between them because of shoddy maintenance and high diesel cost. Adding 200MW worth of diesel would push up NEA's losses by another Rs 25 billion a year.
NepaliTimes, Issue #432 (2-Jan-09 to 8-Jan-09)
DEWAN RAI
There is no greater proof of failure of governance since the restoration of democracy in 1990 than the unprecedented 12-hour power cuts that the country is going through this winter.
And worse is yet to come. If it doesn't rain soon, power cuts will go up to 16 hours a day by mid-February. If nothing is done, these crippling cuts will last at least for another four winters.
At present Nepal's peak evening power demand has risen to 770MW, but production is only 286MW. Peak power generation from the Kulekhani system is down because the reservoir is nearly empty. All of Nepal's run-of-the-river schemes are generating half capacity because of low flow. The 60MW that used to come from India every winter is cut because the Kosi flood washed away the transmission line.
The Middle Marsyangdi that was inaugurated last month by Prime Minister Dahal will only generate 25MW, but only from spring. Power demand is rising at 10MW, but no new major capacity has been added to the grid since the 144 Kali Gandaki came on stream in 2003.
The surprising thing about this crisis is that it shouldn't have been a surprise. Planners and experts have been warning about the growing gap between demand and supply for nearly a decade. (See: 'Loadshedding till 2015' (#289). But successive governments did nothing. According to NEA, the 10th Five-Year Plan target was to produce 314MW but only 40 MW was generated over the period.
"This crisis will continue and we have to be prepared for up to 16 hours of daily load shedding," warns Jugal Kishor Shah at the NEA. The prolonged power outage has crippled industry, with an 80 per cent fall in production. Already crippled by militant unionism, most manufacturing, businesses and hotels are on the verge of closure.
After the announcement of national power emergency on 25 December, the government has come up with National Energy Crisis Working Plan. It plans to re-negotiate Power Purchase Agreement rates for private owners that generate up to 25MW. Projects of up to 50MW do not need EIA or the consent of the forest ministry. It plans to distribute Compact Fluorescent Lamps (CFL) all over the country for which the government has allotted Rs 100 million.
The plan also allows a 10-year income tax waiver for hydro projects that are commissioned in the next two years. And, most controversial of all, the cabinet has approved the installation of diesel plants to generate 200MW before next winter and has called for proposals from the private sector.
The government would import 30MW from Tanakpur, India, beginning Thursday. Critics say the government is reacting in knee-jerk fashion, and hasn't pursued more immediate do-able options. Electricity pilferage amounts to 30 per cent of the generated capacity. Reducing that by even half would be the same as adding another Middle Marsyangdi.
If distribution is handed over to local communities, theft goes down as shown by Mugling which reduced pilferage from 36 per cent to 9 per cent after distribution was handed over.
NEA has also never looked into demand side interventions to control energy use through pricing mechanisms such as time-of-day tariffs. And one immediate solution would be to reduce the price of diesel from Rs 59 to Rs 45 so that industries will find it viable to generate power from their captive plants and even sell it to the grid.
However, the water resources ministry is sitting on nearly 3,000MW worth of licences for hydro power projects all over the country.
The government's record of running existing diesel plants are not good. The 39MW Duhabi plant and the 15MW one in Hetauda don't generate even 20MW between them because of shoddy maintenance and high diesel cost. Adding 200MW worth of diesel would push up NEA's losses by another Rs 25 billion a year.
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