Fifteen Public Enterprises Report Significant Losses: NAC Leads with Over Rs 650 Million in Annual Deficit
Fifteen public enterprises, including Nepal Airlines Corporation (NAC), have been operating at a loss for several years, according to an annual review report presented in the parliament on Sunday. The report evaluates the status of public enterprises for the fiscal year 2079-80 BS (2022-23).
Of the 44 public enterprises analyzed in the report, 26 were profitable, 15 incurred losses, and three had no business transactions. NAC topped the list of loss-making enterprises, followed by Nepal Water Supply Corporation, Dairy Development Corporation (DDC), Udaypur Cement Industry Ltd, and Nepal Television.
NAC reported a net loss of over Rs 650 million for the last fiscal year, with its accumulated loss exceeding Rs 16 billion. Despite a slight reduction in net loss compared to the fiscal year 2078-79 (2021-22), NAC’s financial status remains unsatisfactory. The report attributes NAC's continued losses to challenges in loan and interest payments, high administrative costs, low business volume, delayed flights, and ineffective corporate plan implementation.
Nepal Water Supply Corporation and Nepal Television have both reported net losses since the fiscal year 2075-76 BS, while Udaypur Cement Industry has been in the red since 2076-77 BS (2019-20), and DDC since 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 3.3 billion. DDC reported a net loss of over Rs 484 million, with an accumulated loss of Rs 1.85 billion. Udaypur Cement Industry suffered a net loss of over Rs 362 billion, with an accumulated loss of Rs 5.788 billion.
Additional enterprises reporting significant losses include Hetauda Cement (net loss of Rs 254 million, accumulated loss of Rs 1.158 billion), Nepal Aushadhi Limited (net loss of Rs 155 million, accumulated loss of Rs 2.135 billion), and Nepal Orind Magnesite Pvt (net loss of Rs 165 million, accumulated loss of Rs 5.037 billion). Butwal Spinning Mill reported a net loss of Rs 34.03 million and an accumulated loss of Rs 2.012 billion.
In contrast, Food Management and Trading Company Limited posted a net profit of Rs 129.02 million but still has an accumulated loss of Rs 782.02 million. Despite Nepal Oil Corporation Limited's high net profits, it continues to bear an accumulated loss of Rs 4.85 billion. Nepal Ban Nigam Limited incurred a net loss of Rs 74.03 million, yet reported accumulated profits of Rs 70 million.
Other loss-making enterprises include the National Productivity and Economic Development Center Limited (net loss of Rs 4.33 million, accumulated loss of Rs 112.09 million), Nepal Railway Company Limited (net loss of Rs 199.06 million, accumulated loss of Rs 559.06 million), and Cultural Corporation (net loss of Rs 14.08 million, accumulated loss of Rs 284.02 million).
Janak Education Materials Center Limited, although achieving a net profit of Rs 193.06 million last fiscal year, still holds 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 reported a net loss of Rs 10.04 million and an accumulated loss of Rs 118.05 million last fiscal year.
President Ram Chandra Paudel, upon receiving the report from Auditor General Toyam Raya at a special function at Shitalniwas, expressed hope that the Office of the Auditor General (OAG) would continue to scrutinize the utilization of government funds and properties, highlighting the increasing relevance of the OAG's role in promoting accountability and transparency in public agencies.
