RE: Reform of NEA

September 16, 2011

Bihari K Shrestha
Lalitpur

Bihari Krishna jee

I agree with you that we need more specific and strategic agenda for the purpose. I also agree with you that quite a lot of problems could be solved by opening NEA to private sector. But to an extent only.

Because, private sector is already present in NEA board. Four people nominated from the private sector complement the ex-officio members: energy secretary and finance secretary along with MD who is also a government nominee. In this manner the private sector, at the moment is in majority. Earlier when minister used to chair, the ratio was 4:4. Therefore, mere presence of the private sector isn’t the panacea that will solve all the problems.

Actually, most of the private sector representatives in NEA board to-date (there are definitely some exceptions) have used the position (and opportunity) to further their own personal/business interest like cornering/capturing tender business, executing favorable PPAs, using NEA’s excess cash to help personally owned bank, get near and dear ones employed, use NEA property (mainly vehicles) for personal purposes, extract unauthorized facilities (telephone etc.), etc.

However, I agree with you that the bane of the problem is lack of professionalism and political interference. Therefore, what is required is formulation of a policy that will rid it of political interference and lack of professionalism and institutional mechanism that will not tolerate these.
With best regards,

Sincerely,


Ratna Sansar Shrestha, FCA
Senior Water Resource Analyst
www.RatnaSansar.com

From: Bihari Krishna Shrestha [mailto:bks@wlink.com.np]
Sent: Monday, September 12, 2011 23:05
To: Ratna Sansar Shrestha
Subject: Re: Annapurna Post

Dear Ratna Sansar jee,

You have made valid points in a very strong manner regarding the NEA. However, you have been making saying them for a long time but with little effect. Should not we have a rather more specific and strategic agenda for advocacy. For instance, today, I was reading an Indian business magazine and one of its articles announced that Coal India Ltd replaced Reliance India Limited as the biggest enterprise in India recently. The reason the former - otherwise a chronically sick PSU - could achieve the miracle was due to the professionalisation of its management which was made necessary by the participation of the private sector, although only 10 percent of it, after being listed in the stock exchange. Therefore, shouldn't NEA also be opened for private sector participation which would slowly but steadily discourage politically-motivated mishandling of the enterprise.?
Warm regards

Bihari

----- Original Message -----

From: Ratna Sansar Shrestha
To: Ratna Sansar Shrestha
Sent: Monday, August 15, 2011 7:07 PM
Subject: FW: Annapurna Post


Dear colleague

Annapurna Post has published a write up based on interview with me which you can peruse by opening of the attachments. You can also access it by following the link below