Nepal’s manufacturing sector industries have breathed a sigh of relief with an increased supply of electricity after Nepal Electricity Authority (NEA) started importing additional electricity from India.

According to the NEA, the Government of India last week approved the export of additional 600 MW of electricity to Nepal from Indian power exchanges via the Muzaffarpur-Dhalkebar transmission line. The southern neighbor has consented to supplying electricity during the hours of midnight to 4 AM, 6 AM to 5 PM, and 11 PM to midnight.

Earlier, the Indian side limited electricity supply to Nepal between 6 AM and 6 PM. With imports previously permitted only during ‘solar hours,’ the industrial sector continued to face acute power shortages. This compelled the country’s manufacturing sector to withstand power cuts up to 12 hours a day.

Issuing a press statement on Sunday, Nepal Yarn Manufacturers Association (NYMA) said the industries have started receiving electricity supply on a regular basis for the past few days. “Yarn manufacturers had been facing an increase in production costs and were compelled to produce at under capacity due to load shedding. It also led to an increase in unemployment and decline in export promotion, However, smooth supply of electricity has elated the entrepreneurs,” reads the association’s press release.

According to Pawan Golyan, president of the NYMA, the increased electricity supply has provided a respite for the manufacturers. According to him, manufacturers associated with the NYMA are exporting around 40,000 tons of yarns from Nepal. The quantity makes up more than 80 percent of the total outputs.

“We expect the authority to ensure 24 hour electricity supply to industries. We will also help promote the business environment for entrepreneurs.”

Although Nepal’s installed capacity stands at 3300 MW, the current domestic electricity generation is only around 1,000 MW, due to the drop in electricity production during the ongoing dry season. The power crisis deepened, mainly in manufacturing businesses, after India turned reluctant to supply adequate electricity to Nepal during peak hours of electricity demand.

Meanwhile, manufacturers in the Sunsari-Morang Industrial Corridor have reported that the electricity supply to them has increased by up to six hours. Rakesh Surana, president of the Chamber of Industries, Morang, said the loadshedding hours have been halved from around 12 hours a day.

According to the NEA, India has agreed to allow Nepal to import electricity for 16 hours a day from the previous 12 hours. Likewise, India has also consented to supply NEA with an additional 54 MW of power through the Tanakpur-Mahendranagar transmission line from 6 AM to 6 PM.