NEFPORT ISSUE 42 – SEPTEMBER 2020
ENERGY ENERGY AGRICULTURE
Approximately 86.44 percent of the households in Nepal now have access to electricity supplied through the national grid system. The consumption of electricity increased by 75 percent in the last four years whilst the import of energy from India reduced from 35 percent to 22 percent. On the other hand, the production of power increased by 57 percent to reach 1,257 MW in the last four years whilst the leakage dropped from 25.78 percent four years ago to 15.27 percent last fiscal. Lastly, NEA was able to earn a net profit of NPR 11.05 billion (USD 92 million) in the last fiscal year. NEA to be able to trade power with India and Bangladesh: NEA was
given an approval by the Government of Nepal (GoN) which allows it to sell electricity to India and Bangladesh during over production, particularly during wet seasons and surplus during the night or in the afternoon, and import during underproduction that is when the demand is higher during the dry season. This approval will enable NEA to trade electricity at a competitive price.31 Nepal to get half ownership of New Butwal-Gorakhpur transmission line: The 100 km long transmission
line to be built in India would be partially owned by Nepal as well. The two countries will setup a joint government-to-government company to develop this project. The project is envisioned to be completed within three years wherein out of the 120 kms long transmission line, 100 kms falls in India and 20 kms in Butwal Nepal. 32
NPR 40 billion (USD 333.2 million) allocated for transmission line projects: In order to construct
transmission and distribution lines and enhance their capacity, Ministry of Energy, Water Resources and Irrigation (MoEWRI) has allocated a dedicated budget. With the construction of numerous hydropower projects nearing completion, the government is focused on expanding the transmission line network throughout the country. MoEWRI has listed 91 transmission distribution and substation projects targeting remote locations of the country.33 132 KV substation constructed in Chitwan: The substation which is in
east Chitwan will supply quality and reliable electricity to the area through the Hetauda-Bharatpur transmission line. The substation was constructed to make power supply to Ratnanagar, Khairhani, Rapti and Kalika 34 municipality areas reliable. The project which started in the fiscal year
2015/16 was expected to complete by mid-April this year, however, the ongoing pandemic has caused delays. Show-cause order issued against the decision of government to raise taxes on electric vehicles: The cost
of electric vehicles drastically increased as the customs duty was raised from 10 percent to 80 percent and excise duty increased from 5 percent to 80 percent. The move to increase taxes on electric vehicles was received with much criticism as it discouraged the use of ecofriendly cars in the country. However, the government has been defending the hike in taxes by stating that the step would control the misuse of government package that is allowing the import of luxury electric cars at low taxes and the rise in taxes was needed to finance subsidies worth NPR 11.62 billion (USD 96.8 million) to the electric car users which was announced in the budget of 2077/78 (B.S).35
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