KATHMANDU, MAY 27
Fifteen public enterprises, including the Nepal Airlines Corporation (NAC), have been operating at a loss for a couple of years or more, according to an annual review report of the status of public enterprises presented in parliament on Sunday.
The review report indicates that of the 44 public enterprises in existence until the fiscal year 2079-80 BS (2022-23), 26 were profitable, 15 were operating 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, followed by 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 corporation's accumulated loss exceeded Rs 16 billion. NAC has been continuously operating at a loss since the fiscal year 2076-77 BS (2019-20).
"Although NAC's net loss last fiscal year was reduced compared to the fiscal year 2078-79 BS (2021-22), the financial status of the organization is not satisfactory," the report states.
Challenges such as loan and interest payments, high administrative expenditures, low business volume, delayed flights, and ineffective implementation of a corporate plan are cited as reasons for 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 losses 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, with an accumulated loss of Rs 3.30 billion. DDC reported a net loss of over Rs 484 million, with an accumulated loss of Rs 1.85 billion. Udaypur Cement incurred a net loss of over Rs 362 million, with an accumulated loss of Rs 5.788 billion.
Hetauda Cement reported a net loss of Rs 254 million, with an accumulated loss of Rs 1.158 billion. Nepal Aushadhi (Drugs) Limited suffered a net loss of Rs 155 million, with an accumulated loss of Rs 2.135 billion. Nepal Orind Magnesite Pvt. reported a net loss of Rs 165 million, with an accumulated loss of Rs 5.037 billion. Butwal Spinning Mill had a net loss of Rs 34.03 million, with an accumulated loss of Rs 2.012 billion.
Although the Food Management and Trading Company Limited earned a net profit of Rs 129.02 million in the given time, its accumulated loss amounted to Rs 782.02 million.
Nepal Oil Corporation Limited, despite reporting one of the highest net profits, still has an accumulated loss of Rs 4.85 billion. Nepal Ban Nigam Limited incurred a net loss of Rs 74.03 million but presented accumulated profits of Rs 70 million.
The National Productivity and Economic Development Center Limited incurred a net loss of Rs 4.33 million, with an accumulated loss of Rs 112.09 million. Nepal Railway Company Limited reported a net loss of Rs 199.06 million, with an accumulated loss of Rs 559.06 million, while 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 last fiscal year, it still had an accumulated loss of Rs 1.198 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 operated with a net loss of Rs 10.04 million and an accumulated loss of Rs 118.05 million last fiscal year.
