Factories in Sunsari-Morang crippled by power shortage
BIRATNAGAR, MAR 04 - Factories based in the Sunsari-Morang Industrial Corridor have been running below capacity due to a power shortage. The reduced output has also meant that they have not been able to fulfil market demand.
Normally, the manufacturers here increase production during the period mid-January to mid-May annually, and this period is considered to be crucial for both production and supply.
However, because of the increased hours of load-shedding, the factories are facing hard times.
Even though the Nepal Electricity Authority (NEA) has announced 12 hours of power cuts on a daily basis, there are cases when the load-shedding has lasted longer than the set hours, and sometimes the power cut continues for the whole day.
Rajendra Raut, vice-president of the Eastern Region Chapter of the Chamber of Commerce and Industry, said that small factories requiring little power were running their units with generators, but big ones like cement and steel plants were unable to increase their production, and as a result, they have been gradually losing their market share.
The stories of the industries running with power supply from generators are also sad as it increase production costs by around 35 percent and make it hard to compete in market with Indian products. “Load shedding has not only increase the consumption of petroleum products but also pushed the import to go through the roof,” he added.
In terms of industrial production, this season is considered to be the best time.
But due to the increased hours of load-shedding, factories have been forced to reduce production. “If the problem persists for a long time, we are afraid our market will be captured by others,” said Nawal Kishor Kawara, vice-president of the Morang Merchants’ Association (MMA). He added that due to the failure to maintain production as per demand, the market had started to shrink.
The industrial corridor houses over 500 factories whose products range from daily essential commodities to construction materials. Businessmen said that they had been paying Rs 35 per unit for alternative power while the normal rate for the power supplied by the NEA is Rs 8 per unit. Many companies have been using generators to get over the 12 hours of NEA load-shedding.
There is demand for 150 MW of electricity in the eastern part of the country. As the NEA has not been able to provide electricity in the required amount, the region is currently fully dependent on energy imported from India. The southern neighbour has been providing 80-85 MW, but the supply is not regular. “When demand in India goes up, the supply to Nepal decreases to 40-45 MW,” said Anupam Rathi, a member of the MMA.
According to him, whenever there is no supply from India, 15-20 MW of electricity generated in the country is supplied to the Eastern Region, but the voltage is low. The eastern part of the country currently generates 10-15 MW of electricity.
Rathi said that production could rise up to 60 MW within two years. He added if all the sites having hydropower possibilities were undertaken, the eastern part can generate 5,000 MW of electricity.
Source: The Kathmandu Post
