Kathmandu, November 26

Minister for Energy, Water Resources and Irrigation Kulman Ghising has claimed that Nepal made a profit of Rs 3 billion by purchasing electricity from PTC India at an additional 21 Indian paisa per unit.

He made the claim during a meeting of the National Assembly’s Committee on Public Policy and Delegated Legislation on November 24.

Onlinekhabar has been reporting on the Nepal Electricity Authority (NEA) purchasing electricity from PTC India at a rate higher than demanded, as well as failing to deduct wheeling charges and leakage costs related to the Bihar state transmission line, leading to an irregularity of around Rs 430 million.

Responding to lawmakers’ questions on the issue, Minister Ghising argued controversially that buying electricity at a higher rate resulted in profit, not loss.
However, he did not explain how buying electricity at an additional 21 Indian paisa per unit resulted in a profit of Rs 3 billion.

“We secured electricity for the dry season by signing an agreement at INR 6.95 per unit,” he said.

He further argued that electricity prices were likely to rise in the future, and securing the deal at a higher rate now saved the Authority money in the long run.

“The former managing director and board should have been punished for refusing the deal at INR 6.74 per unit,” Minister Ghising said. “They failed to make the decision at the right time and are now spreading misinformation.”

He insisted that the decision was in the state’s interest. “We made the right decision at the right time,” he said.