The government and industrialists have reached an agreement on the dispute over dedicated and trunk line electricity tariffs after allowing the first installment to be kept as collateral before proceeding to court. Following the agreement, electricity supply to the industries that had been cut off will gradually be reconnected.

In a high-level discussion on Monday that included Prime Minister Sushila Karki, senior government officials, and Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal, a middle-ground proposal was presented to resolve the dispute over dedicated feeder and trunk line charges. According to that proposal, an agreement was reached with the government, the FNCCI announced at a press conference on Tuesday.

FNCCI President Dhakal stated that an agreement has been reached to reconnect the disconnected power lines, pay one installment as collateral, and proceed with the legal process.

A middle-ground proposal to resolve the dedicated and trunk line dispute emerged from a discussion held on Monday in Prime Minister Karki’s office, which included Finance Minister Rameshwar Khanal, Energy Minister Kulman Ghising, Industry and Commerce Minister Anil Sinha, Chief Secretary Eknarayan Aryal, other secretaries, and FNCCI President Dhakal.

According to the proposal, industrialists will deposit an amount equivalent to one of the 28 installments previously granted by the Nepal Electricity Authority (NEA) - not as an installment payment but as a disputed amount to be held as collateral. Once this collateral amount is paid, the electricity supply that had been disconnected will be immediately restored. After submitting the collateral, the industrialists will also be able to seek a review of the case and pursue other legal remedies.

According to the agreement, the concerned industrialists may submit their application to the Authority along with the collateral deposit, including a written statement of their disagreement, a request for review, and other relevant details in the same submission.

Recently, the Nepal Electricity Authority had cut off the power supply to around two dozen industries, citing their failure to pay the premium charges for using dedicated and trunk lines.

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