Defend the statement load shedding and insecurity are main hurdles for industrial development in nepal​

more serious adverse impact but for the fact that people in

Nepal used only 70.9 kWh per capita of electricity in 2006,

which is very low compared to Iceland where (in the same

year) people consumed 31,147.3 kWh per capita, highest in

the world (NationMaster.com, June 2007). The principal

reason behind such low consumption of electricity in Nepal

can be assessed from Figure 2.

It is clear from the above chart that electricity as source

of energy comprised only 2.04% of the total consumption of

energy in 2007/8, while 85% of energy consumed was from

the traditional sources like firewood, agricultural residue

and animal residue. In the same year the remaining 12.35%

comprised of imported sources like coal and petroleum

products for which Nepal paid hard-earned convertible

foreign exchange (hard currency), resulting in a balance of

trade deficit as well as balance of payment deficit.

There exists another facet of the problem manifest in

Figure 2 that can be seen from the example of industrial

corridors in Nepal’s Morang-Sunsari, Bara-Parsa and

Rupandehi Districts that are power-starved. It is estimated

that each of these corridors require additional power

of 200 MW, but due to lack of generation of electricity

in the country industrial growth of the country is being

suppressed and, for the same reason, the Nepalese economy

is literally stagnating (or has not been allowed to grow to its

full potential). This is a kind of undeclared load shedding,

one that has severe adverse impact on industrialization

and employment generation in the country, consequently

affecting the nation’s macro-economy

it is a better alternative