While
most of the state-owned enterprises are struggling to sustain themselves, there
was positive news from the Nepal Electricity Authority (NEA). The state-owned
power utility has maintained steady profit for eight consecutive years,
significantly reducing leakage to 12.73%. It has stated that it limited
electricity theft and technical losses to approximately 12.73 percent in the
last fiscal years. However, barely eight years ago, the NEA faced a leakage
rate of 25.78 percent.
The
success of NEA should serve lessons to all other state enterprises to ensure
that they not only serve the people, but also stand as a commercially viable
entity. The success of NEA is largely attributed to its Managing Director
Kulman Ghising, who not only helped end the prolonged load-shedding crisis in
the country, but also transformed NEA as an organization, paving the path to
even start exporting Nepal’s surplus electricity to India and Bangladesh. One
key lesson from the NEA’s success may be the right man in the right place. It
was under Ghising’s leadership that the NEA earned a “Double A Plus” ICRA
rating, reflecting the transformation of an organization once plagued by losses
into a profitable entity.
It
is disheartening to know now that the NEA is in loss of around 50 billion Rs
after one month of Ghising’s forceful departure.
Please
enjoy this satirical VDO before and after Kulaman’s departure.
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