15 public enterprises including NAC at loss

KATHMANDU, MAY 28: Fifteen public enterprises, including the Nepal Airlines Corporation (NAC), have been operating at a loss for a couple of years or more. This has been stated in the annual review report on the status of public enterprises presented in the parliament recently.

The review report shows that of the 44 public enterprises that were in existence until the fiscal year 2079-80 BS (2022-23), 26 were profitable, 15 were at a loss, and the business transactions of three organizations were nil.

According to the report, in the fiscal year 2079-80 BS (2022-23), the NAC incurred the highest loss among all public enterprises. This trend was followed by the Nepal Water Supply Corporation, Dairy Development Corporation (DDC), Udaypur Cement Industry Ltd, and Nepal Television.

During the last fiscal year, NAC’s net loss amounted to over Rs 650 million, while the accumulated loss of the corporation exceeded Rs 16 billion. The NAC has been continuously operating at a loss since the fiscal year 2076-77 BS (2019-20).

“Although the net loss of NAC last fiscal year reduced compared to the fiscal year 2078-79 BS (2021-22), the financial status of the organization is not satisfactory,” the report states.

Challenges in the payment of loans and interest, high administrative expenditures, low business volume, delayed flights, and the lack of effective implementation of a corporate plan are cited as reasons behind the NAC’s continued losses.

Nepal Water Supply Corporation and Nepal Television have been at a net loss since the fiscal year 2075-76 BS, while Udaypur Cement Industry has reported a loss since the fiscal year 2076-77 BS (2019-20) and DDC since the fiscal year 2077-78 BS (2020-21).

Last year, the Water Supply Corporation incurred a net loss of over Rs 546 million, and the accumulated loss amounted to Rs 3.30 billion.

The net loss reported by DDC was over Rs 484 million, while the accumulated loss was Rs 1.85 billion. Udaypur Cement incurred a loss of over Rs 362 million, and the accumulated loss amounted to Rs 5.78 billion.

Hetauda Cement incurred a loss of Rs 254 million, and the accumulated loss amounted to Rs 1.15 billion, while Nepal Aushadhi (Drugs) Limited suffered a loss of Rs 155 million, with the company’s accumulated loss amounting to Rs 2.13 billion.

Similarly, Butwal Spinning Mill had a net loss of Rs 34.03 million, with an accumulated loss of Rs 2.12 billion.

Although the Food Management and Trading Company Limited earned a net profit of Rs 129.02 million during the review period, its accumulated loss so far amounted to Rs 782.02 million.

Although Nepal Oil Corporation Limited is one of the institutions reporting the highest net profits, it still incurs an accumulated loss of Rs 4.85 billion.

Meanwhile, Nepal Ban Nigam Limited incurred a net loss of Rs 74.03 million, but its accumulated profit stood at Rs 70 million.

The National Productivity and Economic Development Center Limited incurred a net loss of Rs 4.33 million, while the accumulated loss was worth Rs 112.09 million. Nepal Railway Company Limited incurred a net loss of Rs 199.06 million, with an accumulated loss of Rs 559.06 million. The Cultural Corporation incurred a net loss of Rs 14.08 million, with an accumulated loss of Rs 284.02 million.

Although Janak Education Materials Center Limited made a net profit of Rs 193.06 million during the last fiscal year, it still had an accumulated loss of Rs 1.19 billion. Nepal Television incurred a net loss of Rs 351.02 million, with an accumulated loss of Rs 2.408 billion.

National Housing Company Limited was operating with a net loss of Rs 10.04 million in the last fiscal year and an accumulated loss of Rs 118.05 million.

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