FNCCI condemns NEA withdrawal

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the apex body for the private sector, has condemned the Nepal Electricity Authority’s (NEA’s) move to bow to critics’ pressure and withdraw from its earlier decision to upgrade the capacity of the Upper Trishuli 3A hydropower project from 60 to 90.
Issuing a statement on Thursday, FNCCI said the government had to assess all aspects of the project before taking any decision.
“It is not appropriate that the government keeps changing its decision under the influence of some people,” reads the FNCCI statement.
FNCCI, which had earlier brought all major political parties together to agree on the common agenda of developing hydropower projects in the country, said government decisions should be made based on the larger interest of the nation.
FNCCI said the government should have acted in a more mature manner regarding the upgrading of the project capacity in the beginning.
“These kinds of activities send a negative message to the global market,” FNCCI said. “We urge the government, and specially the Ministry of Energy (MoE) and Nepal Electricity Authority (NEA), to be confident about its decisions and activities.”
The NEA board had decided to upgrade the capacity of the project on May 31 but then withdrew the decision on Wednesday after protest from the employees’ unions at the NEA.

Trishuli 3 'A' upgrade decision withdrawn

Following widespread criticism, the Nepal Electricity Authority (NEA) board on Wednesday withdrew its earlier decision to upgrade the capacity of Upper Trishuli 3 ´A´ from 60 to 90 megawatts.
However, the NEA board of directors has not acknowledged that the capacity upgrade decision was not in the interest of the country. “The struggle by the employees unions at the NEA disturbed normal life of the people and day-to-day operation of NEA,” reads a press statement issued after the NEA board meeting.
The NEA board had taken a decision to upgrade the capacity of the project on May 31. Following the decision of the NEA board, senior leaders of the major political parties, except UCPN (Maoist), had urged the government to revoke the decision. They had also handed over a memorandum to Chairman of the Interim Election Council Khil Raj Regmi demanding withdrawal of the decision.
Similarly, trade unions at NEA had launched series of protest programs against the capacity upgrade decision.
Earlier, NEA had published a press statement in the favor of the upgrade decision in most of the major dailies. “The decision to upgrade the capacity of the project is in the interest of the country,” reads the statement released on Wednesday. “But we have been forced to withdraw the decision due to protests by trade unions that badly hampered normal life and NEA operations.”
The run-of -the-river type project is being developed by Chinese contractor China Gezhouba Company Group at a cost of US$ 89.18 million through soft loan from Exim Bank of China.
Trade unions and leaders of various political parties had claimed that the decision involved huge corruption. “It is illegal to upgrade the project that is contracted under the EPC (engineering, procurement and construction) model,” said politburo member of the CPN-UML Gokarna Bista. “Now, the Chinese contractor should focus on developing the project on time.”

Govt enforces minimum pay for workers

The government has enforced the newly announced minimum remuneration for workers in the formal sector from Monday.
The Minimum Wage Fixation Committee, which comprises of representatives from trade unions, concerned government offices and employers, had recently fixed minimum monthly remuneration of Rs 8,000, including Rs 2,900 allowance, and daily wage at Rs 318. Before this, workers were drawing minimum salary of Rs 6,200 per month and Rs 231 per day.