NEA Takes NPR 5 Billion Short-Term Loan from Government

Nepal Electricity Authority (NEA) has taken a short-term loan of NPR 5 billion from the government. The Ministry of Finance had approved up to NPR 10 billion in loans for NEA on Ashar 20, and based on that approval, NPR 5 billion has already been disbursed.

According to NEA’s Executive Director, Hitendra Dev Shakya, the loan at an interest rate of 5.38% has been utilized to address cash shortages and to make payments for various contracts and projects. He stated that the loan is essential for upgrading transmission line capacity, clearing outstanding payments, and ensuring quality electrification across the country.

Shakya further noted that although NEA is currently under financial pressure, the relatively low interest rate has made borrowing feasible. He also confirmed that NEA has already requested an additional NPR 5 billion short-term loan from the Ministry of Finance for the upcoming fiscal year.

With this borrowing, NEA aims to continue expanding electricity infrastructure and enhancing power supply capacity nationwide.