Madhesi agitation cooks up a new crisis for Nepal

In August when Madhesi agitators blocked the main trade route to Nepal choking supplies of cooking gas among other things, the demand for electric induction stoves and rice cookers soared in the Himalayan kingdom.

According to trading sources, due to easy accessibility, 90 per cent of the demand was met by Indian companies. Ajanta, Prestige, and Anchor were the most popular brands.

Now, Nepal faces another crisis: unprecedented electricity shortage . According to a university professor in Kathmandu, power is barely available for four hours between 6 am and 9 pm. The scene is no better in the country’s industrial capital of Birgunj. With the onset of winter, the crisis could not have come at a worse time,

Power shortage is nothing new to Nepal. The country generates nearly 450 MW of hydro-electric power (installed capacity nearly 780 MW) and buys nearly 235 MW daily from India. With the water flow receding in winter, generation also drops.

Usually, the country adds small capacities every year. But the programme suffered a setback this year due to the Madhesi agitation. A Norwegian developer recently pulled out from the country pointing to fragile political environment and lack of power sector reforms. In this situation, the demand has surged. Apart from stoves and cookers, growth of e-rickshaws has also added to the crisis, says G P Lath, a Birgunj-based businessman and a former President of the local chamber of commerce. While there is no official number to the changed consumption pattern, a local trader says one Delhi-based supplier alone sold five lakh cookers, in Nepal over the last few months.

Kathmandu is trying to bridge the gap by stepping up imports from India by 90 MW beginning from the end of this month. This is subject to timely completion of a cross-country transmission project.

Meanwhile, the non-availability of electricity appears to have impacted cooker sales. According to Lath, there is has been a visible drop in consumer interest in electrical gadgets since December.