The Koshi and Lumbini provincial governments have expressed serious concern over Nepal Electricity Authority’s (NEA) decision to cut electricity supply to industries with unsettled dues, warning that the move is pushing factories toward closure and threatening thousands of jobs.

Koshi Province Chief Minister Hikmat Kumar Karki said that the shutdown of several industries due to halted power supply has already affected local employment and contributed to an economic slowdown. He also recalled that arson and vandalism incidents on Bhadra 23 and 24 had already discouraged domestic and foreign investors, making the current industrial disruption even more alarming.

“Stopping electricity supply over unpaid dues has forced private industries, factories, supermarkets, communication service providers and other sectors to shut down, which is unnatural and concerning,” Karki said. “The prolonged misunderstanding between the state and the private sector is regrettable. The government must restore trust and safeguard the private sector, which is a key pillar of the economy.”

Karki emphasized that cutting power to a single industrial unit can trigger a “multi-dimensional economic impact”, and urged the federal government to take leadership in resolving the dispute between NEA and the business community.

Meanwhile, Lumbini Province Chief Minister Chet Narayan Acharya also issued a statement, stating that the power cuts have forced many industries in Lumbini to shut down, resulting in hundreds of workers losing their jobs and harming the local economy.

“The federal government should act as a guardian and facilitate dialogue between NEA and industrial operators to ensure a long-term solution,” Acharya said. “Such sensitive issues can only be resolved through cooperation, negotiation and mutual understanding.”

He stressed that ensuring continuity in industrial production and stability in the investment climate is essential to protect workers’ rights and maintain economic balance.

Industrial and business associations have also warned that the ongoing disruption could severely affect industrial output, exports, tax revenue, supply chains, lending portfolios of banks, and overall investor confidence.

The Nepal Electricity Authority, however, maintains that it is enforcing power cuts under legal provisions against industries that have failed to settle dues. With both provincial governments now formally.