KATHMANDU, July 10: The Nepal Electricity Authority (NEA), whose former Managing Director, Kulman Ghising, had claimed it was in profit, is preparing to take a loan of Rs 30 billion, citing a cash flow crisis.
According to the NEA's MD, Hitendra Dev Shakya, bonds worth Rs 20 billion are being issued for the expansion of production, transmission, and distribution systems, as well as the upgrade of existing infrastructure and to take a short-term loan of Rs 10 billion to address the immediate cash crisis.
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"Approval has already been obtained from the Ministry of Finance to issue the bonds," said MD Shakya.
The NEA is seeking a short-term loan of Rs 10 billion to address the immediate cash flow crisis. Shakya said the NEA currently has liabilities amounting to Rs 14 billion and is facing difficulties in managing cash flow.
“He said, ‘Consent has been obtained from the Ministry of Energy, Water Resources and Irrigation for a short-term loan of 10 billion rupees.’ The authority has stated that this loan will be taken within the current fiscal year.
Earlier, the outgoing MD, Ghising, had stated that during his tenure, the NEA had consistently operated at a profit and its financial condition had improved.
However, the new leadership has said that the institution’s financial situation is not satisfactory, and it is facing a cash crisis; hence, the process to take a large loan has been initiated.
