The authority recorded a profit of over Rs 12 billion in the first six months of the current financial year
KATHMANDU, Feb. 20: The Nepal Electricity Authority (NEA) has made a profit of Rs. 12.12 billion in the first six months of the current fiscal year – financial year 2021/22.
According to NEA financial statements (unaudited), profit was Rs 6.18 billion in the last financial year 2020/21. In the first six months of the current financial year, the profit increased to Rs. 12.12 billion.
With this, the NEA has become the most profitable institution among state-owned enterprises. NEA, which had an annual deficit of 8.89 billion rupees in the 2015/16 financial year, has been making a profit since the days that followed. However, a significant drop in profit was recorded last year.
NEA Director General Kulman Ghising said the organization has been able to make significant profits in the first six months of the current fiscal year thanks to controlling electricity leakage, increasing the export of electricity to India, the decrease in electricity imports and the increase in electricity sales. and the increase in other income.
MD Ghising said that the reduction in operating costs, the measures taken for administrative and financial reforms and the fact that the purchase rate of the 456 megawatt Upper Tamakoshi hydropower was slightly cheaper than other projects in the private sector also contributed to the increase in profits.
“Consumer rate adjustments were made with effect from mid-December, which could affect earnings as revenue declines slightly for the remainder of the current fiscal year, but we are working to return control more effective leaks and tighten financial discipline to cross profits beyond Rs. 15 billion,” Ghising said.
NEA earned Rs 47.98 billion and spent Rs 35.86 billion in the first six months of the current financial year. The main revenues and expenses of NEA are respectively the sale and the purchase of electricity. The NEA’s long-term financial debts to foreign donors reached Rs 114 billion. The long-term loan from the Government of Nepal is Rs 81.81 billion while the long-term employee debt is Rs 36.84 billion.
The fixed assets of NEA are worth Rs 165 billion, the assets to be capitalized are Rs 152 billion, the investments in the subsidiaries are Rs 35.34 billion and the investments in loans are Rs 32.50 billion while the liquid capital is Rs 35.34 billion. Rs 85.10 billion.