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Inability Of the State To Manage Commercial Corporations

Issue 01, January 01, 2012

By KTM Metro Reporter

December 28, 2011: the government has decide to provide the Nepal Oil corporation (NOC) with Rs 1.5 billion to ease the supply of petroleum products in Nepal.

Three corporations such as Nepal Oil Corporation, Nepal Electricity Authority (NEA) and Kathmandu Valley Drinking Water Corporation have amply shown that the government is not able to manage such large commercial corporations.

NOC has been making billions of rupees worth of loss every month because from the minister overseeing this corporation down to the lowest level staff of the NOC take the maximum benefits from it. In addition, it has been distributing free petrol to the politicians, members of parliament, influential reporters and cadres of the political parties. The government places the burden of the loss caused by such corruption on the consumers increasing the prices of the petroleum products.

NEA also makes billions of rupees worth of loss every month. The cases are similar to that of NOC. It distributes free electricity to its staffs; it incurs a huge transmission loss due to the corrupt nature of its staffs; it loses electricity due to the theft by the customers. Again, the government places the burden of all the losses caused by the corrupt staffs on the sincere customers increasing the electricity tariff.

The power outage has been increased to ten hours a day. Most of the large commercial or other institutions keep their generators to supply electricity during the outage. Many affluent households keep invertors for running TVs, and computers and for lighting. Only the poor are hard hit by the power outage.

The Kathmandu Valley Drinking Water Corporation keeps a huge army of staffs for doing nothing. Staffs are not available when we go to pay the water bill, as most of the staffs are warming up in the sun during winter and gossiping during any other time. Meter readers don’t show up as the corporation could not supply water even once a week and the meters don’t show even the minimum water supply the corporation needs to supply. However, the corporation has enough water to supply at the increased price to anybody wiling to pay the price.

Most of the affluent households have either wells or borings to draw underground water for daily uses. All the hotels and townhouses have deep borings to draw hundreds of thousands of liters of underground water for their daily uses. Again, only the poor suffer from the acute shortage of water supply.

Only the Nepal Telcom makes a lot of profits because from the minister down to the low level staffs of this corporation cannot steal any significant things, as it has everything digital and transparent.

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