This is the clarification presented by Kulman Ghising. Will he be relieved of his post today?

Kathmandu. Executive Director of the Electricity Authority, Kulman Ghising, has submitted the clarification sought by the Council of Ministers. Ghising has submitted the details to the Council of Ministers, stating that he has only worked to make a profit for the Electricity Authority.

The Council of Ministers meeting held on Falgun 21 has asked Ghising for a 72-hour clarification. The government has made preparations to dismiss Ghising as soon as the Council of Ministers asked for clarification. It is said that Kulman will probably be relieved of his post at the Council of Ministers meeting to be held on Monday (Falgun 26).

This is the explanation of Ghising

Shri Ministry of Energy, Water Resources and Irrigation,

Singha Durbar, Kathmandu.

Subject: Regarding cleaning submissions.

Sir,

Nepal Government Cabinet Date 2081. 11. As per the decision of 21, mentioning the opportunity to submit clarifications on four points, as informed through your letter dated 2081. 11. 22, it is requested that you submit clarifications as follows in relation to the allegations mentioned in that letter:

(a) Since you have violated the terms of the agreement by not submitting the performance report for the fiscal year 2080. 081 within the time limit of Section 9.5 of the Performance Agreement between the Ministry and you dated 2078. 10. 5 (January 19, 2022), the situation of Section 10.3 of the same agreement has arisen, why not terminate the agreement with you and cancel your appointment in accordance with the same Section 10.3? Regarding:

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• The Government of Nepal (as per the decision of the Council of Ministers dated 2078. 04. 25) appointed me for a period of four years as per Sub-section (1) of Section 17 of the Nepal Electricity Authority Act, 2041 and accordingly, a performance agreement was entered into between me and Nepal Electricity Authority on 2078. 10. 05. As mentioned in the said agreement, the performance of my work has achieved the specified target and I have obtained 94.23 and 98.94 marks in the evaluated work performance of FY 2078. 79 and 2079. 80 respectively. I have done FY 2080. The performance report of 81 has also been submitted for evaluation purposes with the objective condition that if it is evaluated impartially and neutrally like the previous one, it will get 98.99 marks based on the specified target and work progress.
• It is seen from the records that when I was working as the Executive Director of the Authority in the past, the objective assessment was filled in the work performance details submitted up to the month of Magh of the relevant year and marks were given according to the basis of assessment and achievements. Since the work completed within a certain period of time is to be evaluated and the achievements are proven by factual records, the evaluation should be done after the performance report is submitted. The existing agreement does not specify a deadline for submitting the performance report and in the background of past practice, the principle of legitimate expectation is supported by the principle of legitimate expectation that the objective assessment of the work performance submitted in 2080. 81 should be given marks. A person who performs his work has the right to have his performance report evaluated without prejudice and to receive appropriate marks. There is a provision that my incentive allowance will be determined on the basis of the marks I have received.
• Date 2078. 10. 05 In case No. 9.1 of the agreement, there is a provision to form a committee to evaluate the work performance. If the matter provided in the agreement is not satisfied during the evaluation, there is a condition in case No. 10.4 and 10.5 that if the person is not satisfied with the matter, he should be given an opportunity to attend the meeting by giving notice and giving his statement and clarifying it. Accordingly, I have not been given the opportunity to attend the meeting and give my statement regarding the performance evaluation of A. Y. 2080. 81. Also, in case No. In 9.6, there is a provision that I must be given the performance evaluation score as well as detailed description of the evaluation and feedback. As per that provision, I have not been provided with the status, results, details and feedback of the evaluation so far.
• If 50 percent marks are not obtained when the evaluation is carried out as per the provisions mentioned in the agreement, the first party to the agreement (Nepal Electricity Authority) may recommend the cancellation of the agreement or appointment letter and I (the second party) shall not be deprived of the opportunity of being heard before making such a recommendation. There is a provision in the agreement in case no. 10.3.
• I am not aware that a committee has been duly formed to evaluate the performance submitted by me. If the committee has been formed and the evaluation action has been taken, if I am not satisfied with the performance report, I have not been given an opportunity to present my case and be heard by the authorized body before recommending cancellation of the agreement and appointment as I did not get 50 percent marks in the performance evaluation. If any action is recommended by the evaluation committee or the authority level without the above process, it cannot be accepted as it is against the principle of natural justice. As per Case No. 10.3 of the agreement, there cannot be a precedent for taking action to cancel the agreement and appointment without a recommendation to cancel the agreement and appointment from the authority level.
• The agreement does not mention the time period for submitting the work performance report. However, due to the busy work of the office and the need to work day and night for institutional interests, it has not been possible to submit it by the middle of Bhadra, and the evaluation has been requested by the Ministry. The work performance evaluation report for the fiscal year 2080. 81 has been submitted on the date 2081. 07. 07 and 2081. 08. 04, as it has been necessary to work day and night to restore electricity supply by immediately repairing the damage caused to the generation, transmission and distribution infrastructure by the incessant rains in the months of Bhadra and Asoj. The deadline for submission has been requested by letters dated 2081. 07. 07 and 2081. 08. 04.
• The performance evaluation is based on the facts of the work done in the past. It is not possible to evaluate the performance of the work due to the alleged late submission. On this basis, the contract cannot be complied with or the purpose and effectiveness of the contract is not defeated. If the contract itself is meaningless and terminates because some work is not done on time, then time is of the essence in the contract. Even though your letter mentions that the performance report was submitted late, the agreement cannot be void or the appointment can be cancelled for the same reason. Therefore, it is clear that this statement does not constitute a breach of the agreement. Before and after the submission of the said statement, the applicant has been working as per the agreement and the Ministry and the Board of Directors have approved various instructions and travel orders in his favor in his capacity as the Executive Director of the Authority. In the context of the agreement being complied with as it is, the statement that there was a delay in submitting the performance report cannot be a basis for canceling the appointment altogether. Also, there is no condition in the agreement that the agreement will be cancelled due to the late submission of the performance report.

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## (b) ##Without the authority (full authority) as per Clause (b) of Section 2 of the Nepal Treaty Act, 2047 and Clause (g) of Section 2 of the Treaty Execution Directive, 2077 issued by the Government of Nepal, you have signed the Memorandum of Understanding (MoU) with the Central Electricity Authority India for the financial years 2024/25 and 2025/26, respectively, at the 15th and 16th meetings of the Indo-Nepal Power Exchange Committee (PEC) held on March 11, 2024 and February 12, 2025, respectively, and have not been able to fulfill the duties or responsibilities of your position by acting without authority, and therefore, you are hereby dismissed from the post of Executive Director or General Manager of Nepal Electricity Authority. As per the condition of Clause (a) of Regulation 22 of the Rules, 2061 (as amended), why should you not be removed from your post? Regarding:

• The Indo-Nepal Power Exchange Committee was established in the second Indo-Nepal Joint Commission meeting held in December 1991 and since 1992, the committee comprising the Chief (Executive Director, Acting Executive Director) of Nepal Electricity Authority and other officials of the concerned bodies have been participating in the negotiations and reaching agreements for the exchange of electricity with the Central Electricity Authority of India. The process involved on the basis of this practice is accepted as a valid and legal practice. Accordingly, it is in the records and institutional memory of the Authority that such practice has been going on even before that. Your letter only mentions bilateral talks for the Indian financial years 2024-25 and 2025-26. Even before that, negotiations and agreements were being made accordingly, but in FY 2016-17, 2017-18, 2022-23 and 2023-24, talks and agreements were made with the participation of Prabal Adhikari, the then Head of the Power Trade Department of the NEA and expert advisor to the Honorable Minister. Since 1992, the Indo-Nepal Power Exchange Committee has been meeting and exchanging electricity, but by raising the issue of FY 2024-25 and 2025-26 only and recommending action, it is clear that the Honorable Minister is biased.
• In the context of the above practices and work, the Ministry of Energy, Water Resources and Irrigation has issued a notification dated 2077. 03 for the purpose of granting the Nepal Electricity Authority the authority to carry out activities related to the purchase and sale of electricity in foreign countries and to maintain records thereof. On 01, the following proposal was submitted to the Government of Nepal (M.P.S.):

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## ”In accordance with the provision of sub-section (2) of Section 20 of the Nepal Electricity Authority Act, 2041, prior approval of the Government of Nepal to sell electricity to foreign countries or purchase electricity from foreign countries, to sell or purchase excess electricity that cannot be produced and consumed in Nepal or electricity that is insufficient due to a decrease in domestic production to neighboring countries India and Bangladesh or from those countries on a short/medium/long-term/long-term basis, to provide prior approval to the Nepal Electricity Authority by making arrangements to keep electronic records of all stages related to the sale and purchase of electricity.”

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• In the proposal submitted by the Ministry of Energy, Water Resources and Irrigation, the Government of Nepal (M.P.S.) on 2077. 04. 05 (July 20, 2020) decided to replace the words “to keep records of all stages” in the decision to be made in Chapter 4 of the proposal with the words “to keep electrical records of all stages” and to add the words to do as written in other proposals and to clearly grant the same authority. As per the said proposal and decision, the authority has been duly granted as per Rule 21 (Provisions of Schedule-1) of the Nepal Law on Treaties and the Government of Nepal Business Conduct Regulations, 2064. In accordance with Rule 29 of the same regulation, in the course of implementing the decision of the Government of Nepal (M. P. S.), the Ministry of Energy, Water Resources and Irrigation, in its letter dated March 14, 2021 (dated 2077. 12. 01), informed the authority by mentioning the following:

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## ”Ministry of Energy, Water Resources and Irrigation, Government of Nepal has appointed Nepal Electricity Authority (NEA) as the Nodal Authority for coordinating with the Designated Authority of India and facilitating cross-border import/export of electricity including planning, grid operations and electricity transactions as per the decision dated February 28, 2020.

Furthermore, NEA has also been granted prior approval by the Government of Nepal through the decision dated July 20, 2020 for carrying out the functions related to all types of power import or export with India and Bangladesh on long term, medium term, and short term basis including bidding, day-ahead and term-ahead transactions by also keeping them on electronic records.”

I would like to remind you that the decision of the Government of Nepal to grant the said authority was taken by the meeting of the Council of Ministers chaired by the current Honorable Prime Minister.

• The above details prove that the undersigned has engaged in the negotiation process in accordance with good practice, regular tradition and the authority of the Government of Nepal (G.P.C). In addition, the last time on February 12, 2025, the Memorandum of Understanding (MoU) between N.V.Pvt. Ltd. and the Indian entity will come into force only after the approval of the Board of Directors of Nepal Electricity Authority and the approval of the Electricity Regulatory Commission, so an appropriate decision will be taken by those entities.

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• I would like to inform you that the Government of Nepal was also represented in the meeting mentioned in the letter by the Deputy Secretary Shri Sanjiv Rai and the First Secretary of the Nepali Embassy in Delhi Shri Vijayraj Tandukar. In addition, at that time, while the Honorable Minister Shri Deepak Khadka and Secretary Shri Suresh Acharya were on a visit to India, permission (mandate) was also taken to enter into an agreement regarding new rates and electricity purchase.

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• ##Last date 2081. 10. The following details prove that the agreement concluded between Nepal Electricity Authority and Central Electricity Authority India on 20 (February 12, 2025) is more appropriate than the previous agreements regarding electricity purchase:

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• ##In the previous fiscal year, the growth rate of electricity tariff was 4.5 percent, but according to the latest agreement, the growth rate has been reduced by providing for a growth rate of 1.5 percent.

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• ##When energy is imported at a low growth rate, the foreign exchange reserves of the institution and the nation will increase.

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• Proper arrangements will be made to ensure electricity import during the dry season and prevent potential load shedding.

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• ##Date 2078. 10. 05. In clauses No. 6.2 and 12.1 of the agreement, the responsibility to act in the national and institutional interest has been stipulated. Similarly, the above-mentioned low growth rate and the provision of purchase at a low amount at the time of need of the state are in the national and institutional interest (Benefit to the state and Institution). It cannot be said that the work of supplying electricity during the dry season when there is an energy crisis and managing exports during times of high electricity production is not being performed or that the duties of the post have not been performed. History is witness to the fact that load shedding has stopped in Nepal during my tenure and electricity supply has been continuous. Accordingly, the meaningful efforts made to make electricity supply reliable, sustainable and to maintain a balance between demand and supply in the context of the increasing demand for electricity are the achievements made in the course of fulfilling the responsibilities of the post. To say otherwise is only an attempt to exaggerate the facts. The work of the post and responsibilities have been fully performed by preparing a reliable infrastructure for electricity import and supply at a low growth rate. Therefore, it is clear that the conditions of Regulation 22 (a) of the Regulations on the Terms and Conditions of Service of the Executive Director or General Manager of the Nepal Electricity Authority, 2061 (with amendments) cannot be attracted.

Also, since such an agreement has been implemented in the past to manage electricity demand/supply during peak electricity demand periods in Nepal, taking into account that, taking ownership of the arrangement to import electricity at the lowest growth rate to date, by taking this into consideration, is an unnecessary question and a disincentive to the responsible officials. Therefore, I request you to consider the long-term impact of such an action and the impact it may have on bilateral relations sensitively.

(c) Government of Nepal, Council of Ministers, Date 2081. 7. Why should you not be removed from your post for not implementing the instructions given by the Ministry regarding the determination and recovery of the arrears of electricity consumed by customers consuming electricity from dedicated feeders and trunk lines (including on the basis of Time of Day meters) by the decision of 25? Regarding:

• Some industrial customers have filed cases (including writ petitions) in various courts regarding the issue of discounted bills issued at premium tariff rates to customers consuming electricity from dedicated feeders and trunk lines from 2072. 04. 01 to mid-2077 Ashad. So far, more than 90 writ petitions have been dismissed and the plaintiff’s claim in the cases has not been satisfied, so the discounted bills issued by the Authority have been judicially certified as valid.

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• The Government of Nepal formed an inquiry commission on this matter and received the decision of the Council of Ministers of the Government of Nepal dated 2081. 07. 25 regarding the tariff for the disputed period. As per the decision taken by the Steering Committee on 2081. 07. 27, a public notice was published on 2081. 07. 29 to recover the arrears within 15 days based on the approved rate prescribed by the Electricity Tariff Determination Commission, including ToD meters. As per the report given by the committee formed under the coordination of Shri Ganesh Prasad Luitel, Director of Nepal Electricity Authority, correspondence was sent to the concerned industrial consumers from the concerned distribution center to pay the electricity tariff arrears determined on the basis of ToD meters, including ToD meters.
• In order to recover the dues from the industrialists and businessmen who did not pay the dues, the electricity lines were disconnected from 2081. 07. 12 in accordance with the Nepal Electricity Authority Act, Section 23 of 2041, the Electricity Act, Section 19 (c) of 2049, and Regulation 31A of the Electricity Distribution Regulations, 2078. At the time the electricity lines were being disconnected for the purpose of collecting the dues, instructions were received to connect the disconnected lines within 24 hours and recover the amount within 15 days as per the decision of the Government of Nepal dated 2081. 07. 25. In the case of non-payment of electricity tariff within 15 days as per the said directive, the electricity regulatory commission has issued a letter dated 2081. 08. 11 to not take action to disconnect the line and the 990th meeting of the board of directors dated 2081. 08. 12 has issued a directive to do as per the directive of the electricity regulatory commission, so the effective recovery of the arrears was obstructed. Thereafter, a request has been made to the Nepal Rastra Bank, the Office of the Registrar of Companies and the Securities and Exchange Board of Nepal to stop the bank accounts, transfer of shares and issuance of shares to the general public (IPO) of consumers with arrears of tariff. In this regard, the authority has informed the electricity regulatory commission through a letter dated 2081. 08. 12, Ch. No. 579. In addition, through a letter dated 2081. 09. 03 Ch. No. 678, the Authority requested the Commission to agree to disconnect the electricity lines of the residences of the operators of industries with arrears of electricity tariff.
• Even after taking coercive measures other than disconnecting the electricity lines as per the instructions of the Electricity Regulatory Commission, the industrialists with arrears of electricity tariff did not come to pay the arrears of electricity tariff. P. No. 2081. 082, Ch. No. 549 dated 2081. 10. When the Authority wrote to the Electricity Regulatory Commission on 28th February to provide consent to disconnect the electricity lines and recover the arrears of electricity tariff, the Commission again requested it on 2081. 11. The Authority has been instructed to cut off the line of industrialists who have not paid their dues through the letter dated 09.
• The fee that the Authority should receive for consuming electricity is the amount of public funds. As the head of the Authority, all actions were taken on my behalf to recover and protect the Authority’s funds. Government of Nepal M. P. S. and the Electricity Regulatory Commission have been blocked from taking action at the authority level, which has created a situation where the arrears have not been recovered. The decisions and actions taken by the taluk bodies have created a situation where the arrears have been almost impossible to recover and the accusations made against me in this matter are completely biased.
• Most of the decisions made by the judiciary have become final due to disputes arising regarding the arrears of dedicated and trunk lines. There is a provision in Article 126 of the Constitution of Nepal to resolve disputes according to the accepted principles of the Constitution, law and justice. Since the rule of law is established by respecting and implementing the final decision of the judiciary that administers justice, I hereby inform the Government of Nepal that I have deep faith in it.

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• The Ministry of Taluks and the Electricity Regulatory Commission repeatedly instructing industrialists who have not paid their electricity dues to connect their disconnected power lines and not to disconnect the connected power lines, but asking for an explanation for not raising the arrears, is contradictory in itself.

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## (d)## Why not remove you from your post for not fulfilling your duties and responsibilities as an Executive Director as per the Nepal Electricity Authority Act, 2041? Regarding:

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• According to which provision of the Nepal Electricity Authority Act, 2041, what should I have done in relation to the presented allegation? And what action did I not take or what action should I not have taken? And there is no mention of any action or omission (Commission or Omission) being taken by me. Therefore, the presented allegation itself is subjective.

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• In the performance evaluation report submitted by me, the evaluation committee has given 94.23 and 98.94 marks respectively in the evaluation of the year 2078. 079 and 2079. 080. Year 2080. The performance report has been submitted with the objective basis for obtaining 98.99 out of 81 marks. The work to be done as the Executive Director of the Authority is mentioned in the agreement letter as per the Nepal Electricity Authority Act, 2041. Accordingly, the fact that I have obtained more than 94% marks in the previous years while working is proof that I have faithfully and completely fulfilled my duties and responsibilities, so I request that there is no need to provide further details on this matter.
• Although the Nepal Electricity Authority Act, 2041 does not mention the separate functions and duties of the Executive Director, I have always worked day and night for the prosperity of the organization, the Nepali people and the country in a way that achieves the spirit and objectives of the Act. Since the entire public and the nation are the witnesses to the real impact of the Authority’s service delivery, infrastructure development, electricity expansion, performance improvement, financial improvement, and institutional strengthening, as well as the increase in national and international trade in the energy sector, I request that the actions of removing me from service and asking for an explanation are unexpected, biased, and unjust.

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• The main work progress achieved since the Government of Nepal gave me the responsibility of the Executive Director of the Authority to date is as follows, as is clear from the work performance details submitted, so the accusation of removing me from the post is in itself illegal, arbitrary and prejudicial:

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• ##My first term as Executive Director started from Bhadra 30, 2073 and my second term started from Shravan 25, 2078. During this period, load shedding, which used to occur for about 18 hours a day, was ended.

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• ##Only about 58 percent of the people in the country were able to consume electricity, but currently 99 percent of the people have access to electricity. Work is underway to achieve complete electrification within the next one year. Work has been done to provide access to electricity to the geographically remote and economically marginalized and disadvantaged people and to install free electricity meters.

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• ##As of FY 2072. 073, the accumulated deficit of the Authority was about Rs. 35 billion and the deficit of the same FY alone was about Rs. 9 billion. In FY 2073. 74, after continuously making profit and covering the accumulated deficit, the accumulated profit by FY 2080. 81 has reached about Rs. 47 billion. In FY 2072. 073, the total assets of the Authority were about Rs. 211 billion, but currently they have reached about Rs. 644 billion.
• Since its establishment, the Authority has paid about Rs. 26 billion to the Government of Nepal under various titles in 32 years up to FY 2072. 073, and in the last 8 years, it has paid a total of Rs. 82 billion including principal, interest, tax and royalty.

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• In the past 8 years, the Authority alone has invested about Rs. One trillion in generation, transmission and distribution infrastructure, while it has invested about Rs. 57 billion in subsidiaries and affiliated companies.

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• Although electricity has to be imported even during the rainy season, it has been successful in earning foreign exchange by exporting electricity to India during the rainy season for the past three years. Last year, electricity worth about Rs. 17 billion was exported, exceeding electricity imports. In addition, electricity has also been exported to Bangladesh, a third country that does not share a border with Nepal, since last November.

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• ## In FY 2072. 73, there was about 26 percent leakage in the electricity system, but in FY 2080. 81, success has been achieved in maintaining it at 12.73 percent. This has contributed greatly to improving the financial condition of the Authority.
• With the easy and sufficient supply of electricity, electricity consumption in the country has increased by about three times. In FY 2072. 73, per capita electricity consumption was about 131 units, but currently per capita electricity consumption has increased to about 400 units. The main reason for this increase in consumption is the increase in the use of electric vehicles, electric stoves and other electrical appliances and the increase in household and industrial demand.
• A provision has been made for customers consuming less than 20 units of electricity to have free electricity and a minimum charge of only Rs 30. Out of the approximately 6 million electricity consumers across the country, approximately 2.2 million households have availed of this facility. In addition, electricity is being charged at a much lower rate than the price purchased by the Authority for irrigation, drinking water, charging stations, monasteries, temples, cold storages, etc. In this way, the Authority has been fulfilling the state’s obligations from its income. Despite this, the Authority has been able to continuously make a profit.

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• ##Not only electrifying villages, but also expanding smart street lights in collaboration with local bodies has effectively advanced the work of making the city brighter.

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• ##In 2072. 073, the total electricity generation capacity in the country was about 856 megawatts, which increased by about 4 times to about 3500 megawatts in 2080. 81. The NEA has secured the market by entering into power purchase agreements with the private sector on a Take or Pay basis, which has resulted in an expected increase in power generation from the private sector.
• Prioritizing solar power generation, the NEA has already generated about 117 MW of solar power through itself and the private sector, while projects of about 113 MW are under construction, and 960 MW of solar power is in the process of entering into power purchase agreements.

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• While only 2,800 MW of power sales agreements were signed 8 years ago, power purchase agreements for more than 11,000 MW of private sector projects have been completed, while about 8,000 MW of hydropower projects are in various stages of construction.

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• ##The NEA, which has been increasing its revenue, has increased investment not only in transmission lines but also in power generation. The NEA’s subsidiary companies are under construction of the 140 MW Tanahu Reservoir, 40 MW Rahughat and 37 MW Upper Trishuli 3B, and 20 MW Rollwalling hydropower projects. Under the leadership of Chilime, a subsidiary of the NEA, 168 MW projects have come into operation, while the 102 MW Mid-Bhotekoshi Hydropower Project is in the final stages of operation. Chilime Hydropower Company has taken forward additional hydropower projects of about 300 MW.

Construction of 42 MW Upper Modi-A, 18.2 MW Upper Modi and 99 MW Tamakoshi Pancha has begun. The 210 MW Chainpur Seti, 1063 MW Upper Arun and 670 MW Dudhkoshi reservoir hydropower projects have been financially managed and are ready to go into construction. Pre-construction preparations for these projects are underway.

The 492 MW Arun-4 Hydropower Project will be developed in a joint venture with the Sutlej Hydropower Corporation of India. The 683 MW Sunkoshi-3 Reservoir Hydropower Project has been taken forward with the investment of government agencies of Nepal and Bangladesh. Similarly, a detailed study process has been initiated for the 10,800 MW Karnali (Chisapani) Multi-Purpose Reservoir Project, which can be taken forward as a model project in the South Asian region. In order to manage the fluctuations between daily demand and supply, about 42,000 MW of pumped storage hydropower projects have been identified in various parts of the country to make the system reliable and quality, and further study of some excellent projects has been taken forward.

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• To make the Authority’s services more effective, automate the system, and ensure reliable and quality electricity supply, digitization of the organization has been given high priority. By effectively implementing the information technology roadmap, every activity of the Authority has been converted into digital technology in line with the Digital NEA concept.

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## An international standard distribution system control and data center equipped with state-of-the-art facilities has been completed and put into operation. The necessary process has been taken forward to implement smart meters, SCADA, and ERP systems. Good governance within the organization has been strictly enforced.

• A. W. 2072. 073 Nepal’s national transmission system, which was operating only with transmission lines up to 132 k. V., is currently operating with 220 k. V. and 400 k. V. The transmission line, which was 2,900 km. 8 years ago, has now reached about 8,000 circuit km. while the capacity of grid substations has increased from about 22,000 MVA to about 14,000 MVA.
• For electricity trade with India, the second Butwal-Gorakhpur 400 kV. V. Inland transmission line is under construction, while Inaruwa-Purnia, Lamki-Bareilly 400 kV. V. and Chameliya-Jaulljivi 220 kV. V. transmission lines are in various stages of implementation. In addition, an understanding has been reached between Nepal and China to advance the Chilime-Kerung 220 kV. V. transmission line. In this way, the transmission line network will be expanded to export about 20 thousand megawatts of electricity by 2035.

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• A master plan for transmission and distribution infrastructure has been prepared and implemented in a phased manner by dividing the country’s major cities into 11 major clusters to meet the demand by 2050.

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• ##In the year 2072. 073, there were 121,000 circuit km. in the distribution line. It has now reached 220,000 circuit km. while the distribution substation capacity has increased from 640 MVA to about 2,600 MVA. In addition, the work of undergrounding electrical wires in the main cities of Kathmandu, Bhaktapur, Lalitpur, Pokhara and Bharatpur Metropolitan City is in the process of being completed.

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• The Authority has been consistently receiving AA+ rating in the credit rating conducted by ICRA Nepal, which shows that the Authority is capable of meeting its financial and economic obligations with confidence.

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## (p) The Authority has appointed an international consultant in collaboration with the World Bank to conduct a physical examination and evaluation of the assets across the country, and the physical examination and reevaluation of the assets have been completed, resulting in an increase in the fair value of about 99 billion. Based on this, the Authority has taken the necessary steps to issue an IPO to the general public.

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## (e) The action taken to demand the clean-up is flawed:

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• The undersigned has not obtained the 50% marks specified in the work agreement and has been given the opportunity to be heard on the merits and, if action is deemed necessary in the unbiased own wisdom of the Government of Nepal on the recommendation of the relevant officer or body, an opportunity to submit an explanation as to why action should not be taken on the basis of the actions or omissions taken in the first phase.

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• As mentioned above, if the accused person’s response to the request for clarification in the first stage of the investigation proves that the authority has committed the alleged act, it is necessary to propose punishment and demand clarification. While taking departmental action against a public servant, proposing punishment and demanding clarification in the first stage is against the established judicial principles and the basic principles of natural justice.

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• The officer who can take departmental action against a public servant (employee) must take action based on impartiality and independent discretion. Case No. of the Performance Agreement dated 2078. 10. 05. In case of obtaining less than 50 percent marks as per 10.3, the process can proceed only after completing the process specified in the case no. 10.4 and 10.5 of the said agreement and giving me two opportunities to respond before the evaluation stage and the recommendation from the Authority. In the case where the recommendation is made to cancel the agreement and appointment, the process can proceed if it is considered reasonable in the discretion of the Government of Nepal. The process for canceling the agreement and appointment has been clarified in the case no. (a) of this clarification. Accordingly, there is a serious legal and procedural error in the present action process without completing the process and method.
• ##According to the decision of the Honorable Ministerial level of the Ministry of Energy, Water Resources and Irrigation dated 2081. 11. 13, an explanation was sought as to why action should not be taken to terminate the service (remove from service) based on clause (a) of Regulation 22 of the Regulations on Services, Conditions and Facilities of the Executive Director or General Manager of the Nepal Electricity Authority, 2061 (including amendments). I have already submitted a reply to the said clarification on 2081. 11. 15. It is not possible to seek clarification on the proposal and recommendation of the same ministry to take the same action again. It is not possible to seek clarification repeatedly to take the same action without taking a final decision in accordance with the law in response to this previously sought clarification and the law. Every legal action should be decided and final in accordance with the law. The repeated prosecution of the same person by different state bodies on the same issue is contrary to the rule of law and Article 20 of the Constitution of Nepal. Regardless of who made the accusation, whether or not the same person has been accused of the same issue is considered a serious legal question.
• If a dispute arises regarding the arrears of electricity supplied to large industrial houses receiving supply from dedicated feeders and trunk lines, and after the final decision is made by the court, it is the legal right of the Authority to receive payment of the tariff, then it is my duty as the head of the organization to take action for recovery. I could not accept the instructions given by the current Minister of Energy, Water Resources and Irrigation to cancel this arrears and make arrangements to ensure that the court’s decision is not recovered in accordance with my official duty and loyalty. The action presented has been taken against me for not accepting his instructions, which are in favor of recovering a large amount of public funds. The subject of the action that the departmental minister is trying to take against me is the large arrears of industrialists and businessmen. By diverting it and raising absurd, imaginary, secondary and general procedural issues, the responsible Council of Ministers, who exercise the executive power of the country, has been successful in taking action to this extent.

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## The statement made by the Honorable Minister regarding the financial statements of the Authority while addressing the meeting of the House of Representatives dated 2081. 11. 22 is untrue and objectionable. The final audit report of the Authority was approved by the 992nd meeting of the Board of Directors dated 2081. 09. 23, chaired by the Honorable Minister, and the report, signed by the Minister himself, has been certified by the Office of the Auditor General. It seems contrary to the dignity of the office to make a statement in the House of Representatives that the financial statements approved by the Board of Directors meeting held under his own chairmanship are paper profits. In addition, I and the Authority family are shocked by the statement made in a way that devalues the role of the leadership of the Authority and the general employees in ending load shedding in Nepal.

I expect that the Government of Nepal’s Council of Ministers will objectively analyze the proposed action recommended by the Honorable Minister and make an impartial and prudent decision, so that the loyal public servants who have made meaningful contributions to the nation in the energy sector do not have to face further injustice and harassment, and also to send a positive message to the general Nepali citizens.

• I am deeply saddened by the efforts to discourage and punish those who should have been encouraged for their leadership in ending load shedding, achieving 99% electrification, leading a loss-making organization to continuous profitability, effectively controlling leakage, earning significant foreign exchange by exporting electricity to India and Bangladesh, increasing electricity generation, transmission and distribution capacity by more than four times, and providing electricity services to citizens of various classes at concessional tariff rates.

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## Therefore, based on the law, natural justice, facts and attached documents considered in the above cases, I request that no action be taken as mentioned in the letter, including cancellation of my appointment and removal from the post, as per the decision of the Government of Nepal (Council of Ministers) dated 2081. 11. 21 regarding submission of the clarification.

inline_tags_PLACEHOLDER_17## Attached document (photocopy)##inline_t ags_PLACEHOLDER_18##: