February 29: Nepal Electricity Authority (NEA) made a profit of Rs 15.36 billion in the first six months (mid-July 2023 to mid-January 2024) of the current fiscal year. The authority informed that it earned a total of Rs 67.28 billion from the sale of electricity, interest and other headings. During the review period, the NEA earned a net profit of Rs 15.36 billion. In the corresponding period of last fiscal year, the NEA made a profit of Rs 10.91 billion.

The NEA’s profit in the first six months of the current fiscal year increased by more than Rs 4.44 billion compared to the first six months of the last fiscal year.

The state-owned electricity utility’s profit in the first half of the current FY is more than the profit it made in the entire twelve months of last fiscal year. Last year's profit stood at Rs 12.33 billion.

The NEA, which suffered an annual loss of Rs 8.89 billion in the fiscal year 2072/73, has been making profit continuously in the following years.

Kulman Ghising, executive director of the NEA, said that the NEA earned a significant profit by curbing electricity leakage, increasing domestic consumption and exporting electricity to India.

During the review period, the NEA spent Rs 51.92 billion for the purchase of electricity, administrative expenses, projects works.

"Due to budget limitations, we have not been able to get enough funds for investment from the government. In such a complex situation, we are investing billions of rupees every year in infrastructure development and strengthening and electrification projects from the profits earned by the organization. The profit is being invested in electricity generation, transmission and distribution," said Executive Director Ghising, adding, "The country needs investment of more than Rs 1000 billion to become self-sufficient in electricity and to provide quality and reliable electricity to the consumers.”

The NEA has collected Rs 45.49 billion from the sale of electricity in six months of the current year. During this period, electricity worth Rs 30.48 billion was purchased from energy producers within the country and from India.

The NEA has been exporting surplus electricity to India during the rainy season.

However, the NEA purchases electricity from the southern neighbor with the onset of the dry season, when the flow of water in the rivers recede and the power generation of the hydropower projects has decreases in the country.