KATHMANDU: More than 4,000 workers have lost their jobs after Reliance Spinning Mills in Sunsari’s Khanar suspended operations on October 20.
The shutdown follows Nepal Electricity Authority’s (NEA) decision to cut power supply to over two dozen industries due to an ongoing dispute over dedicated feeder and trunk line premium charges.
Established in 1996, Reliance Spinning Mills had been operating continuously for nearly three decades. According to the company’s General Manager, Mahesh Pokharel, the factory employs over 2,000 men and 1,500 women as permanent staff, along with daily wage workers, security personnel, and foreign employees.
“We haven’t officially declared a closure, but production has stopped,” said Pokharel, adding that the company has never halted operations for internal reasons in its 30-year history. “This industry has never shut down due to strikes or union demands. Every problem has come from external causes.”
Pokharel claimed that the company has maintained an exemplary industrial environment, offering workers subsidized meals, various funds, and scholarships for their children. Around 2,000 workers are provided on-site housing.
Dispute over electricity dues
Pokharel insisted that the company does not owe any outstanding payments to NEA, despite the authority cutting off power over alleged arrears. “There’s a misconception that we haven’t paid our electricity bills. We’ve cleared all monthly bills, even during the load-shedding period,” he said.
According to him, the NEA suddenly began sending bills four years later, claiming billions in unpaid “premium fees” for using dedicated feeder lines. “We received letters stating we owed Rs 750 million, then Rs 1.25 billion, and later Rs 2 billion. We don’t even know how these figures were calculated,” he added.
Pokharel said multiple committees — including one led by a former judge — were formed to resolve the issue, but none of their recommendations were implemented. The industry had filed a case at the Sunsari District Court, claiming no dues were pending. However, the court dismissed the case on procedural grounds, which was later misrepresented as a loss for the company.
After NEA reduced the security deposit requirement from 25% to 5%, industries including Reliance sought a review. Pokharel alleged that once Kulman Ghising became Energy Minister, the review process was abruptly scrapped.
“The same person who caused us trouble with electricity in the past is now the Energy Minister. The review was stopped under his direction, forcing us into this crisis,” Pokharel said.
He further stated that the company has detailed records of its power usage and bills. “We can provide every monthly and daily electricity statement if needed. We just want the issue resolved based on evidence,” he said, adding that Reliance is ready to pay any amount proven legitimate.
Comment