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Nepal Electricity Authority (NEA) Managing Director Hitendra Dev Shakya, who has repeatedly defied decisions of the NEA Board of Directors, has once again issued a tender today fixing a ceiling rate for electricity imported from India - contrary to the board’s directive.

Earlier, in December, the NEA Board of Directors had decided that tenders for electricity imports from India should not specify a fixed rate. Despite this decision, Shakya issued a tender on January 19 stating that the landed rate for electricity imports would not exceed INR 6.90 per unit for the period from February to March 2026, and likewise would not exceed INR 6.90 per unit for April–May 2026.

No bidders participated in that tender.

Shakya had earlier claimed that his predecessor, Manoj Silwal, had agreed to purchase electricity at a higher price, asserting that he had informed Indian suppliers that electricity could be supplied at INR 6.60 per unit. However, Silwal had signed an agreement to purchase 100 megawatts of electricity at INR 6.95 per unit.

The NEA was later forced to issue a new tender after Shakya, during his earlier tenure as executive director, concealed the board’s decision and failed to implement the agreement. Shakya subsequently left for France. After the formation of the government following the Gen G movement, Kulman Ghising became Minister of Energy. Ghising appointed Silwal as NEA’s managing Director and transferred Shakya to the Water and Energy Commission.

After implementing the NEA Board’s decision, Silwal attempted to persuade PTC India to supply electricity at INR 6.74 per unit, but the company did not agree. As a result, NEA was compelled to finalize the purchase at INR 6.95 per unit. The Authority is now procuring electricity at that same rate.

In an apparent attempt to deflect responsibility for his earlier actions, Shakya used social media - particularly Facebook - to claim that electricity had been purchased at INR 6.74 per unit instead of INR 6.65 per unit, a claim disputed by available records.

Following the failure of the January 19 tender, the newly issued tender again stipulates that bids must not exceed INR 6.90 per unit. If Indian suppliers participate in this round, it may once again demonstrate that electricity imports for the upcoming April–May period cannot realistically be secured below that rate.

Previously, when NEA issued tenders by fixing ceiling rates in a similar manner, the process became controversial and ultimately failed due to a lack of bidders. Against this background, issuing another tender using the same approach has raised serious questions regarding policy consistency and the implementation of board decisions.

The Authority has invited sealed bids to import 100 megawatts of electricity from India for the months of April–May, specifying a maximum allowable rate of INR 6.90 per unit.

Earlier, the NEA Board of Directors had adopted a clear policy of not fixing rates, emphasizing that prices should be determined through a competitive market-based process. In this context, the administration’s decision to include a ceiling rate in the tender is widely viewed as being in direct contradiction to the board’s directive.

Jalasarokar