Dedicated trunkline arrears dispute: NEA cuts power lines of 6 industries

NEA Executive Director Silwal said that counters have been arranged so that the industry can pay its dues even during the public holiday of Tihar. He said that if the first installment is paid in installments, the disconnected line will be reconnected at any time.

kartik 4, 2082

Seema Tamang

Dedicated trunkline arrears dispute: NEA cuts power lines of 6 industries

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The last deadline given by the Nepal Electricity Authority to pay dedicated and trunkline dues expired at midnight on Sunday. Earlier, electricity was cut off to industries with the highest arrears as soon as the deadline expired.

But this time, the NEA did not cut off electricity because it is Lakshmi Puja on Monday. “The decision to cut off electricity on Monday was made to allow Lakshmi Puja,” said NEA Executive Director Manoj Silwal.

The NEA has said that the power lines of six industries were cut off on Tuesday morning as soon as Lakshmi Puja was over. According to NEA spokesperson Rajan Dhakal, the power lines of Jagadamba Steel, Reliance Spinning Mills, Shivam Cement, Ghorahi Cement, Arghakhanchi Cement Industries and Triveni Spinning Mills were cut off.

According to NEA, Jagadamba has Rs 1.6 billion, Reliance Rs 753.7 million, Shivam Rs 778.8 million, Ghorahi Rs 508.5 million, Arghakhanchi Rs 448.4 million and Triveni Rs 321 million outstanding dues. This arrears are additional charges for using electricity through dedicated and trunk lines from 2072 Magh to 2075 Baisakh.

Industries whose lines were cut off due to non-payment of dues

Industry Amount of dues
Jagdamba Steel 1.6 billion 18 million
Reliance Spinning Mills 75 million 37 million
Shivam Cement 66 million 88 million
Ghorahi Cement 50 million 85 million
Arghakhanchi Cement 44 million 84 million 
 Triveni Spinning Mills  32 million 10 million

The Authority had issued a notice on 12 Asoj to pay the dues by 17 Kartik, stating that all the activities related to the administrative review had been canceled. The notice mentioned that 28-month installment facility would be provided to industrialists who wanted to pay the dues. On 13 Asoj, the Authority had corrected the previous notice and re-issued a notice to pay the dues by 2 Kartik.

Executive Director of the Authority, Silwal, said that a counter has been arranged so that the industry can pay its dues even during the public holiday of Tihar. He said that if the first installment is paid in installments, the disconnected line will be reconnected at any time.

According to the Authority, Samrat Cement, Rolpa Cement and Nav Nepal Plastic Industries had already started paying their dues in installments. However, after paying some amount in 28 installments, they stopped paying the installments from 2082 Baisakh.

Samrat Cement had received approval from the Authority to pay the additional duty of Rs 37.7 million for dedicated and trunk line usage from 2072 Magh to 2075 Baisakh in monthly installments of Rs 1.349 million each. The industry had stopped paying since last Baisakh after paying four installments. The industry has paid three installments of Rs 40.47 million at a time, and the installments up to Jestha have been paid.

According to the approved installment facility, only seven installments have been paid out of the 11 installments that were to be paid from Ashad to Asoj. A letter has been sent again to pay the remaining 4 installments of Rs 5.396 million and the industry has said that it will pay the remaining installments regularly by paying the said amount.

Approval was obtained from the authority to pay the outstanding amount of Rs 9.912 million of Rolpa Cement in monthly installments of Rs 3.54 million per installment. After paying 6 installments, the industry stopped paying. The industry has reached a stage where it has paid five installments of Rs 1.77 million in one go and paid regular installments. Now the industry has 17 installments to pay.

Similarly, Nav Nepal Plastic Industries has paid the outstanding amount of Rs 1.23 million in 12 installments. Laxmi Steel has started paying the outstanding tariff for consuming electricity from dedicated and trunk lines. Out of the Rs 237.9 million dues, Laxmi Steel has paid Rs 8.498 million in installments. Laxmi Steel had also stopped paying installments since last Baisakh.

According to the authority, Hama Iron, Hulas Steel and Ashok Steel have also paid the first installment. Hulas has received approval to pay the outstanding amount of Rs 141.2 million for the premium fee for dedicated and trunkline usage from 2072 Magh to 2075 Baisakh in monthly installments of Rs 50.43 million each.

Similarly, another Ashok Steel from Simara, which has an outstanding amount of Rs 175.8 million, has also paid the first installment. Ashok has paid Rs 6.3 million by taking the facility of 28 installments. Hama has paid Rs 20.9 million as the first installment out of the Rs 58.5 million dues.

Similarly, Sarvottam Cement and Shubhashree Agni Cement have also paid the first installment on Friday. Vinayak Spat, Shubhalakshmi Polym, GB Textile 1 and GB Textile 2 have also started paying their dues by taking the installment facility. But some industries with large amounts of arrears have not started paying yet.

As of Monday noon, 13 industries have started paying their dues by taking the installment facility, said NEA spokesperson Dhakal. ‘As of Monday, 13 industries have started paying their dues, some industries have already paid,’ he said, ‘We have taken the process forward as per the NEA Act, Rules and Regulations for the industries that have not come to pay their dues.’

The industrialists have filed a petition for review in a letter registered with Prime Minister Sushila Karki’s secretariat last Friday. The industrialists have raised questions about the NEA board meeting that canceled the entire review process while the petition was under consideration. The industrialists have said that they are ready to pay the arrears that will be established on the basis of evidence as recommended by the Lal Commission.

‘We had duly filed a review petition against the authority for demanding special rates from us without any evidence, even though the authority had not provided electricity,’ the letter from the industrialists states. ‘While the said petition was pending, the board of directors of the authority decided to cancel the entire review process and sent a letter to disconnect the electricity line if the arrears were not paid within 2 Kartik, so we are forced to file this petition before the honorable sir.’

According to Shyam Kishor Yadav, who is also a member of the board of directors of the authority, 46 industries, including those that have started paying their arrears by taking the installment facility, have filed an application for administrative review. The meeting of the board of directors of the authority held on 21 Baisakh 2082 had decided to issue a notice to the industrialists to appeal within a month. An industrialist alleges that the authority has not taken any decision even after an additional month of notice was extended.

Industries on the list of lines to be cut off due to non-payment of dues and the amount due to the three

Sonapur Mineral and Oil 243 million
Jagdamba Synthetic  205 million
Butwal Cement  184 million
Himal Iron and Steel 136.5 million       Cosmos Cement
 97.7 million Everest Paper Mill
94.4 million     Nigale Cement
58.1 million Triveni Synthetic Yarn Industries
44 million Vishal Cement Industries
 33.5 million Gharana Foods
18.8 million Siddhartha Petplast
18.3 million SR Foods
14.8 million Goenka Foods Rupandehi
14.8 million Panchakanya Steel Industries
52 million Shyam Plastic Industries
49 million Bhalwari Automatic Factory
30 million Panchakanya Plastic Industries
25 million Everest Rolling Mill
17 million SR Steel Industries
16 million The commission formed under the leadership of former Justice Girish Chandra Lal had suggested that the tariff should be recalculated and collected by determining the day and period of electricity supply to the customers as per the standards at that time. The Authority claims that the arrears of tariff from 2072 Magh to 2075 Baisakh are Rs 6.6 billion. The Authority says that since 60 days have passed as per the rules, 25 percent additional fee should also be paid. In this way, the arrears reach Rs 8.25 billion.
Industrialists have been demanding data on Time of Day (TOD) meters from the Authority since the past. ‘If it is proven that the industry has to pay the arrears, we express our commitment to pay the amount,’ the letter states, ‘The decision to impose a special fee for electricity flow through trunkline and dedicated line feeders was not made by the Tariff Determination Commission, and by changing the details, these industries are only seeking protection from the law by creating false arrears and claiming them as trunk-dedicated arrears.’ The Red Commission had stated that the amount will not have to be collected during the period from 2072 Shrawan to 2072 Pus when the electricity tariff has not been determined. The commission has suggested that the arrears cannot be collected for the third period, i.e. from 2075 Jestha to 2077 Ashar, as load shedding has already ended.

The last time the NEA cut off electricity to 40 industries at once on 8 Kartik 2081. The cabinet meeting held on 25 Kartik 2081 had decided to collect the arrears within 15 days by calculating them on the basis of TOD meters. Immediately on 27 Kartik, the NEA's board of directors issued a notice to pay the arrears by 12 Mangsir.

At that time, on 11 Mangsir, the commission had given a four-point directive to the NEA not to cut off electricity to industries. Due to the dispute over the arrears of dedicated feeders and trunk lines, differences were growing between the then executive director of the NEA, Kulman Ghising, and the then energy minister, Deepak Khadka. The then energy minister, Khadka, had repeatedly asked for clarification, and Ghising was removed by the cabinet meeting on 11 Chaitra 2081. The same Ghising has now become the Minister of Energy, Water Resources and Irrigation.

The lines of these industries that have taken an interim order from the court

-

will not be cut .

Industry

 Due amount Maruti Cement

57 crore 45 lakh Arihant Multifiber
 11 crore 53 lakh United Cement
11 crore 37 lakh Raghupati Jute Mill
8 crore 51 lakh Arihant Polypack
6 crore 62 lakh Baba Jute Mill
2 crore 49 lakh  

Seema

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