Kathmandu, Sept 30 : Nepal Electricity Authority has decided to issue 25% (IPO worth Rs 31 arba 25 crores) of its shares to public. Since the IPO amount is quite large, in the first phase corporate and businessperson will be targeted in the IPO.
NEA also announced several other plans and future prospect of the company. NEA has also planned to earn a massive profit of Rs 8 arba in the upcoming year.
Last year, NEA had a net profit of Rs 7 arba 20 crores. Next year, NEA’s focus will be on reducing expenditure, increase in productivity and reduce leakage of electricity. Before the recruitment of Ghising as the CEO, NEA had been in loss worth Rs 35 arba.
In order to issue IPO, a company needs to be in net profit for last three years and should have a positive reserve. Although the former criterion has been fulfilled by the company, NEA still has a negative reserve. So, in order to convert the reserve into a positive one, two more years might be required.
In order to make an automated electrical system, NEA has decided to install smart meter that will issue the bills similar to an automated system of a telephone.
Kulman Ghising, CEO of Nepal Electricity Authority, explained that the current TOD meter system, which requires employees to visit individual houses, will be replaced by smart meters.
NEA will be implementing smart meters in Kathmandu as a pilot study. NEA also plans to use online platforms for payment for the convenience of clients.
Previously, the focus of NEA was on the elimination of load shedding. However, now its focus can shift to customers’ satisfaction so new electric wires, substation improvement and other provisions will be introduced.
NEA is also planning to reduce the waste of electricity and full usage of th produced electricity. Hydropower and other sorts of electric production will be game changer for NEA in upcoming days.
Kulman Ghising also boldly made a statement to implement strict corporate governance and control corruption in order to make NEA far sighted, responsible and accountable.
He further stated in the upcoming ten years NEA will be able to make provisions such that 10 thousand megawatt worth electricity will be used. NEA further plans to encourage electric vehicles, electric stoves and electric charging points for automobiles.
In the current year, NEA has increased its capacity by 1 thousand MW production capacities. NEA has added 456 MW Upper Tamakoshi, 111 MW Rasuwagadhi, 14.8 MW Upper Sanjen and several other hydroprojects. Besides, NEA has also decided to provide 49% shares to general public for 1060 MW Upper Arun, 99.6MW Taamakoshi 5 and take the construction accordingly.