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Kathmandu, July 10 – Despite former Managing Director Kulman Ghising’s claims of profitability, the Nepal Electricity Authority (NEA) is preparing to secure a Rs 30 billion loan amid a severe cash flow crisis.
Current MD Hitendra Dev Shakya said the NEA will issue bonds worth Rs 20 billion to expand production, transmission, and distribution systems, and upgrade existing infrastructure. An additional Rs 10 billion short-term loan will be taken to ease immediate financial pressure.
The NEA currently faces liabilities of Rs 14 billion, making it difficult to manage day-to-day operations. Shakya confirmed that the Ministry of Energy, Water Resources, and Irrigation has approved the short-term loan, which will be acquired within the current fiscal year.
Contrasting earlier claims of improved financial health under Ghising’s leadership, the new management has acknowledged that the authority’s financial position is now strained, prompting the need for urgent borrowing.
People’s News Monitoring Service