Germany announced a EUR 55.6 million or Rs 7.55 billion grant to Nepal as part of the two-day negotiations on development cooperation that ended in Berlin on September 20, 2018.

A substantial portion of this grant will be distributed among three key sectors of Nepal: Energy (EUR 24.55 million), Sustainable economic development (EUR 13 million) and Health (EUR 11.95 million).

By geography, the cooperation will have its special focus on rural areas of Mid and Far West Nepal, along with additional support to selected districts badly hit by the 2015 earthquake.

Health:
Mother & Child Care in the Kathmandu Valley is the major aspect that the cooperation is looking at as the biggest project with a EUR 8.3 million grant for 2018.

As part of this project, the cooperation intends to support the expansion of Paropakar Maternity and Women’s Hospital services in Kathmandu to the surrounding areas.

Improving availability, access and quality of healthcare services, particularly in the maternal and new-born health, establishment of social health security program to support Nepal’s goal of Universal Health Coverage, are among other activities to be covered under healthcare support.

Economy:
Cooperation in the field of economic development covers creation of sustainable income and job opportunities, especially among disadvantaged groups.

According to the German Embassy in Kathmandu, all the fresh commitments will go in line with Nepal’s Development Co-operation Policy.

With the fresh grant, Germany’s financial aid to Nepal reached approximately EUR 1.2 billion since 1961.

Energy:

The cooperation stands committed to Germany’s continued support for energy efficiency with the Nepali Ministry of Energy, Water Resources and Irrigation as the lead partner.

The post Nepal Bags Another Foreign Aid for Local Progress appeared first on Nepali Sansar.

With Israel
In a move enhancing the domestic energy sector, Nepal took another step that would foster its energy cooperation with Israel.

In a recent discussion, Nepal and Israel discussed ways to boost bilateral ties between the two nations, especially in the energy sector.

In a discussion with the Israeli Ambassador to Nepal Benny Omer, Nepal Minister for Energy, Water Resources and Irrigation Barshaman Pun urged the former to push for Israeli investment in Nepal’s energy sector, informed Pun’s Secretariat.

“There’s demand of 10,000MW of electricity for Nepal in 10 years. We have a favorable investment climate in Nepal for investors in the energy sector. Thus, I urge the Israeli investors to consider investment in this sector,” Pun reportedly said in a statement.

In response, the Israeli Ambassador expressed Israeli Government’s willingness to invest in Nepali energy and irrigation sectors.

Reiterating his support in this regard, Omar informed that Israel has already begun quest to find interested stakeholders who could invest in the Nepali energy sector.

With Bangladesh
Meanwhile, Nepal is also gearing up for a similar cooperation with Bangladesh.

According to a recent update, Nepali Ministry for Energy, Water Resources and Irrigation is planning to conclude an energy pact with Bangladesh during Bangla’s Power Minister Nasrul Hamid’s upcoming visit to Nepal.

The Bangladeshi minister is scheduled to embark on a three-day state visit to Nepal from August 9, 2018.

As the sources say, both the sides are expected to sign a MoU in this regard to form a high-level bilateral mechanism for electricity trade between the two countries and for inviting Bangladeshi investment in Nepali hydropower projects. 

It has been some time since a high-level discussion was held between the two countries regarding energy trade and investment. If the joint mechanism is formed, it will be a wonderful platform to turn the discussion into reality, reads a statement.

Both the sides have also agreed to establish secretary and joint secretary-level mechanisms in this regard.

With Myanmar
Very recently on July 31, 2018, Nepal signed another deal with Myanmar that would enhance Nepal-Myanmar bilateral ties.

At the Foreign Ministry level, both the sides signed a MoU for the establishment of the Bilateral Consultation Mechanism and exemption of visa requirements for the holders of diplomatic and official (special) passports.

Nepal Joint Secretary at the Foreign Ministry Tapas Adhikari and Myanmar Ambassador to Nepal Thiri Pyanchi U Tun Nay signed an agreement in this regard on behalf of both the nations.

During the meeting, Nepali Foreign Secretary Shanker Das Bairagi and his counterpart U Myint Thu
also reviewed other key matters pertaining to bilateral relations and ways to take them further, reads an official statement.

Also Read: 

• Oli India Visit 2018: India, Nepal Strengthen Ties, Target Next-level Development
• Nepal-Uzbekistan Diplomatic Ties Established
• Nepal, Benin Establish Diplomatic Ties
• Nepal 2017 Highlights: Politics and Bilateral Relations

The post Nepal Bilateral Ties: Series of New Deals Underway! appeared first on Nepali Sansar.

This became evident in one of the recent developments that saw a Japanese firm stepping up its efforts to enter the Nepali gas market as part of its business expansion in Asia.

Tapping on Nepal’s growing energy demand that increased aftermath of the 2015 earthquake, a Japanese LPG distributor Saisan Co. formed a joint venture with Gas One Nepal Private Ltd., thus becoming the first foreign player in the Nepali LPG market besides Indian firms.

Though firewood has been the primary source of fuel in Nepal, there is now a sharp rise in demand for LPG in the country because of its advantages such as stable supply and minimized air pollution compared to wood fuel.

While there are a total of 58 LPG suppliers in Nepal, there is hardly any city gas network even in the capital city Kathmandu.

Despite the high LPG demand among the city’s hotels and restaurants, the city’s diffusion rate is estimated to be only 20 percent leaving scope for further expansion.

Tapping Nepal’s LPG Demand

The LPG demand in Nepal has seen its new high as a result of the Nepal Government’s new economic reforms and recovery efforts aftermath the devastating 2015 earthquake that shook the country’s landscape.

The Japanese firm is keen on tapping the country’s gas demand, which it says has increased from 260,000 tons in 2016 to 300,000 tons in 2017 at an annual growth rate of 10 percent.

According to Satoki Koike, who heads the Saisan’s overseas business division, Nepal has good growth potential like any countries and is most likely to see a 500,000 tons LPG demand in the future.

“We want to provide safe and highly efficient products, so we can gain market trust,” Koike said referring to the locals’ call for safety measures as a result of recently-reported gas explosions in Nepal due to defects in LPG tanks.

The local joint venture is currently operating in the southern regions in the Indian border area and is eyeing the Kathmandu market in the near future.

The post Leading Japanese Firm Eyes Nepal’s Growing LPG Demand appeared first on Nepali Sansar.

Let’s have a glance at some of the key sectors that received major infrastructure push in the new budget:

Energy

With energy sector on top priority, the government allocated Rs 83.39 billion for enhancing the country’s energy infrastructure alone in the coming fiscal.

With a target of equipping all the households with modern energy within three years and further with sufficient energy supply within five years, the government plans to call 2019-2029 as the ‘Energy Decade’.

The budget also envisages construction of multipurpose hydropower projects across all provinces and begin construction of the same within two years period. The government is also planning to construct a 3,000-MW capacitive hydropower project with the combined investment of government, public and remittance funds.

There are also plans to develop a good number of micro-hydro projects and biogas plants to electrify the rural areas of the country.

Transport

Transport is another area that received a major boost in the present budget with an allocation of Rs 109.38 billion.

Some of the high-profile projects include cable car and monorail projects in Kathmandu, construction of the East-west railway line, Kathmandu-Nijgadh Expressway, Postal Highway, Pushpalal Mid-hill Highway and link roads connecting all the districts touching the southern border to the Pushpalal Mid-hill Highway, among others.

The new budget also envisages construction of new airports across the country.

The government has allocated a budget of Rs 1.43 billion for the transportation management system and is also developing relevant government agencies in all the provinces.

Tourism

Tourism is one sector that is of high significance for Nepal. The new budget has Rs 5.20 billion allocated for the overall development of Nepali tourism sector.

While the country reached 1 million target at the end of 2017, the new budget envisages a 2 million annual tourist arrival target by the end of 2020. Strengthening the domestic tourism to drive in more tourist inflow, the government is planning to develop 100 new tourist destinations and diversify tourist services across the country.

The government also has plans to develop the Meetings, Incentives, Conferences and Exhibitions (MICE) tourism by mobilizing the country’s foreign missions. To facilitate ways for tourist arrivals, more number of airports are also being planned at various tourist destinations of the country.

Towards getting academic support, the government is also aiming at the conversion of the Nepal Academy of Tourism and Hotel Management (NATHM) into a deemed university.

Other key areas that received due attention for overall infrastructure development include:

• Economic Affairs- Rs 483.14 billion
• General Public Service – Rs 396.74 billion
• Housing & Community Amenities – Rs 66.57 billion
• Public Order & Security – Rs 47.50 billion
• Social Protection – Rs 46.91 billion
• Defense – Rs 44.93 billion
• Environment Protection – Rs 22.72 billion
• Recreation, Culture & Religion – Rs 7.10 billion

Overall, the new budget paid due attention to the infrastructure development across the country as a key to achieve the economic growth.

Next: Budget Gets Mixed Response

Related Article:

• Nepal’s Maiden Federal Budget 2018-19
• Nepal Federal Budget FY 2019-20: Highlights & Announcements

The post Nepal Federal Budget FY 2018-19: Infrastructure Gets Major Push! appeared first on Nepali Sansar.

In a landmark step, the newly-formed Oli-led Nepali Government is unveiling the country’s first federal budget for FY 2018-19 or FY 2075-76 (Nepali year) on May 29, 2018.

Nepal’s Finance Minister Yubraj Khatiwada will reveal the budget at a joint meeting in the Nepali Parliament on the aforementioned date at around 4 p.m.

Speaker of the House of Representatives, the lower house of the Federal Parliament of Nepal Krishna Bahadur Mahara announced this officially on May 27, 2018.

As per the Nepali Constitutional mandate, the Nepali Government is supposed to unveil the budget in a joint parliamentary meeting on Jestha 15 (May 15-June 14 as per the Western calendar), the second month of Bikram Samwat in the official Nepali calendar.

Expenditure Up for Economic Growth

As per the available sources, the Government of Nepal is most likely to place a Rs 16 trillion budget for the
FY 2018-19.

“The economic growth of the previous decade has remained average at 4.3 percent. Now it is expected to reach 5.9 percent this year,” says Yubaraj Khatiwada in his parliamentary address.

However, experts feel that the presumed economic growth can be achieved only by increasing the tax levied on the public.

“The expenditure has increased, the source of income has decreased constantly for which the government’s major focus lies on collecting revenue, which will hike the import plumping the custom duty that will definitely result in dearth, constant increment in the price of petroleum in the upcoming fiscal year,” says an economic expert and a senior Nepali journalist.

Two days prior to the budget day, the Finance Minister also noted that the finance deficit is most likely to reach 10.4 percent.

Inflation is a key matter of concern for the country; inflation in Nepal increased to 6 percent in the last eight months of the current fiscal year from a previous value of 2.3 percent.

Development & Fiscal Discipline

Assuring development while balancing the fiscal discipline remains a key area of focus for the Oli-led Nepali Government.

Prior to the budget, programs and policies on top priority for the government were announced on May 27, 2018, in which, social and infrastructure development projects took the top place.

While the National Planning Commission (NPC) is projecting the relevant budget to be at around Rs 1.2 trillion for such projects, the finance minister is expected that to be above Rs 1.45 trillion.

When it comes to pooling revenues, the government is aiming at a collection of Rs 1 trillion in the coming fiscal while also raising Rs 300 billion as a foreign fund.

According to the Finance Ministry officials, the provincial and local governments are most likely to see a significant budgetary allocation of around Rs 400 billion for developmental activities.

Overall, the government is looking at an 8 percent economic growth rate to meet the targets set by the annual policies and programs such as two-fold rise in per capita income in five-year period, among others.

Allocation Across Sectors

According to the Finance Ministry, a significant amount of budget will be allocated for flagship projects in infrastructure, energy, agriculture, tourism, among other sectors and on PM’s dream projects such as railways and waterways.

Energy and irrigation projects such as the Sunkoshi-Marine Diversion Program and Butwal-Sunauli cross-border transmission line are set to receive a due attention in the upcoming budget.

Some of the projects that are likely to receive budgetary attention include the Madan Bhandari Highway, railway expansion covering metro rail in Kathmandu, Kathmandu-Tarai Expressway and a feasibility study on Nepal-India waterways.

Taxation is another area that is going to see some significant changes in this budget. Along with a significant revisal of tax regime, the new budget is more likely for increased tax on import on luxury products such as liquor and cigarettes.

The government is also looking at royalties, land registration and fees as the additional sources of income for the treasury.

When it comes to the government sector, the civil servants’ salaries are not going to see any significant changes other than little adjustments in indirect benefits and allowances.

Allocation for social security allowance is also likely to take a back-step because of the increased allocation to the local and provincial bodies.

Overall, domestic industries are more likely to get the due support in this budget with those using local raw material on top priority.

Special Schemes

As part of schemes, a special program called ‘Sustainable Energy for All’ is going to be implemented with focus on renewable and hydropower sources. “We’ve focused on reservoir projects as well as expansion of transmission lines under this program,” says an NPC member.

Towards ensuring clean environment, another scheme called ‘Nepal Clean Environment Campaign’ also likely to be announced towards curbing air pollution and encourage the usage of electric vehicles.

Current Challenges, Ways Forward

Two of the key current challenges for Nepal are with regard to foreign exchange reserve and food deficit.

According to the Nepal Rastra Bank (NRB), Nepal’s foreign exchange reserves have come down over the last three months affecting the country’s ability to finance imports.

In its third quarterly review of the country’s monetary release on May 26, 2018, NRB reported a massive expansion of imports, outflow of dividends by foreign investors and slow growth of remittance contribution to decreased foreign exchange reserves.

NRB statistics show a decline in the country’s foreign exchange reserves from USD 10.31 billion in mid-July 2017 to USD 10.16 billion by mid-April of 2018, a decline over the previous fiscal.

After a consistent rise driven by rising remittances over the years, foreign exchange reserves of Nepal started dropping down since the mid of January 2018.

“We are not worried about current drop in foreign exchange reserves as our target is to keep such reserves to sustain the imports of goods and services for at least eight months. But, the situation may worsen provided the import continues to surge and remittance growth continues to slow and export does not grow as required,” says Nara Bahadur Thapa, Executive Director of NRB.

Meanwhile, the country is also currently facing a food deficit despite the surplus harvest in the current fiscal year. The Economic Survey 2017-18 released on May 27, 2018 has reported a food deficit of 71,400 tons in the current fiscal despite the presence of 898,115 tons surplus from the previous fiscal.

In another development with regard to trade, Nepal is hoping high on trade activity through India’s Vizag port. A Nepali delegation that visited Vizag (India) expressed confidence over controlling overall end-to-end logistics costs and improving trade supplies to Nepal through Vizag port’s infrastructure.

On an End Note

The new budget is definitely going to be a path-breaker for Nepal in its new path of development led by the newly-formed government. Besides internal functioning, the Oli-led government is also focusing high on external relations by expanding Nepal’s bilateral and business ties with other countries.

Let’s hope the new budget will create a needed scope for the country’s overall development while also balancing the nation’s external growth on a global scale!

Related Article:

• Nepal Federal Budget FY 2019-20: Highlights & Announcements

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Citing to plastic waste management as a ‘global crisis’, Earth Day Network (a non-profit organization that conducts the Earth Day every year) informed that the World Earth Day 2018 is focused on ways to end plastic pollution globally.

A wide variety of events have been held across the world commemorating the World Earth Day 2018 with some of them being Green Room Festival 2018 by Japan, Billion Acts of Green by China, No-Plastic by Indian State of Karnataka, #StirCrazy Earth Day by Romania and the UK and Earth Day by the Bay in San Fransisco, among various others.

“There is a growing tidal wave of interest in ending plastic pollution and some countries and governments are already in the vanguard. Earth Day Network believes we can turn that tidal wave into a permanent solution to plastics pollution,” Earth Day Network President Kathleen Rogers said in a statement.

Case of Nepal

Like many other countries, Nepal has been striving for a clean and safe environment.

Towards this goal, the country and its citizens have been coming up with many eco-friendly initiatives including clean up campaigns, waste management programs, among various others.

#PollutionControl : Towards controlling vehicular pollution, the Government of Nepal has called for a ban on old vehicles aging more than 20 years.

#HornFreeWorld : Riding on the success of the horn-ban policy in its capital city Kathmandu, Nepal is also striving for achieving horn-free nation status through a serious implementation of the policy across the nation.

The policy’s success in Kathmandu was also referred to as a real-time example for efficient public-policy collaboration in Nepal. 

“In the entire South Asian region, this is one of the most successful initiatives by the traffic police. This is our pride. Now if you blow the horn, people will look at you just like in a developed country, as if you were uncivilized,” says Sudan Silwal, a senior police officer from Kathmandu Metropolitan Traffic Police (KMTP) department.

#GreenVehicles : Another interesting initiative of Nepal is the pitch for usage of green vehicles or electric vehicles run by alternative energy sources such as electricity, solar or biofuel, among others. The country is looking at a full-fledged transition to the usage of green vehicles or Electric Vehicles (EVs) in the next 10 years.

“With the right policies in place, we can achieve complete transition in 10 years,” says Nepal’s former Finance Secretary Rameshore Khanal, who also opines that Nepal’s transition to EVs will be faster than that of India.

#CleanEnergy : There is a growing trend of adopting clean energy solutions in Nepal. As a country with good water resources, Nepal is already riding high on its hydropower and is also ramping up efforts for full-fledged harnessing of alternative energy solutions like wind, solar, bio-fuel, among others.

#WasteManagement : With wide variety of activities, Nepal has always been effectively for waste management and has also set few classic examples like Dhankuta for effective waste management. The country has always been active in tackling waste management through mega clean-up campaigns for cleaning up tons of debris across all levels.

#CleanAir : Very recently, a Nepal-based private firm in collaboration with the US Embassy in Kathmandu has come up with an app called Safa Hawa for keeping a continuous check on air pollution and ensure clean air and environment to its citizens.

#PlasticFree : Nepal has also been taking various initiatives for a plastic-free environment. In 2011, the Nepali Ministry of Science Technology and Environment came up with the Plastic Bags Control and Regulation Directive prohibiting the import, storage, manufacture, sale and use of plastic bags less than 30 microns.

Likewise, Nepal has taken many such initiatives for safe and clean environment, and there the country also has various organisations working for such eco-friendly initiatives.

Plastic Haunts the Globe!

Research studies show alarming results about plastic pollution, globally.

A 2015 study by a team of environmentalists led by Environmental Engineer at the University of Georgia Jenna Jambeck found an estimated 275 million metric tons of plastic waste in 192 coastal countries as of 2010, with 4.8-12.7 million metric tons of that directly moving into the ocean.

A Washington DC based non-profit media house, in its research, also saw some astonishing results. It was shocked to find that 93 percent of bottled water sampled from nine countries and 94 percent of drinking water in the United States contained chemically-toxic plastic particles with many of those linked to major health diseases.

Action Plan

“Plastic pollution is now an ever-present challenge. We can see plastics floating in our rivers, ocean and lagoons, littering our landscapes and affecting our health and the future of billions of children and youth. We have all contributed to this problem –- mostly unknowingly,” Valeria Merino, Vice-President of Global Earth Day at Earth Day Network, said in a statement.

Speaking about further action plan, Rogers said, “This year, Earth Day Network will mobilize its global network of non-governmental organizations and grassroots groups as well as local elected officials, faith leaders, artists, athletes, students and teachers to build a world of educated consumers, voters and activists of all ages who understand the environmental, climate and health consequences of using plastic.”

Where it Started?

First celebrated in 1970, the World Earth Day emerged at the time when the pollution from industries was still legal and there were hardly any laws for environment protection.

Kickstarting the first World Earth Day celebration on April 22, 1970, the then US Senator Gaylord Nelson took ahead the initiative across the nation, which eventually resulted in the inception of the today’s renowned regulatory body for environment protection, U.S. Environmental Protection Agency (EPA). 

Continuing with the pace, the Earth Day program went on further mobilizing millions across the world for fight against environmental issues on a global platform.

According to the Earth Day Network, around 1 billion people from 192 countries take part in the World Earth Day every year.

Let’s pledge for a plastic-free world! #PlasticFreeWorld

The post #WorldEarthDay2018: Nepal, A Classic Example! appeared first on Nepali Sansar.

The move closely watched by Indo-Nepal communities, resulted in positive outcomes as evident in Oli’s statements after the successful completion of his three-day visit during April 6-8, 2018.

As part of the visit along with his wife and 53-member Nepali delegation, Oli held discussions and special meetings with the Indian dignitaries including President Ram Nath Kovind, Prime Minister Narendra Modi and other key political leaders and personalities.

Significant and Fruitful

“My official visit to India was significant and fruitful. The visit has helped in clearing misunderstanding

and mistrust, and strengthening mutual trust and understanding. The bilateral relations will move forward in a new direction on the basis of equality and mutual interest,” Oli said in a statement after arriving at the Tribhuvan International Airport in Kathmandu post his India visit, indicating a new era for Indo-Nepal bilateral ties under his government.

We have agreed to expedite past agreements and understandings reached between the two countries, he added.

As part of the visit, both the sides also discussed cooperation across various sectors. Let’s have a glance at some of the key highlights of sector-wise cooperation discussed during Oli’s visit:

In the bilateral meetings, India and Nepal agreed upon few key agreements that have been under discussion for quite some time.

Stating that both the Prime Ministers were satisfied with the bilateral talks, Indian Foreign Secretary Vijay Gokhale informed that the two sides discussed strengthening of cooperation through agriculture, trade, defense, security, along with enhanced connectivity through railway and water ways.

Both the sides have reportedly come to a consensus on taking ahead the construction of Raxaul- Kathmandu railway line and the operation of Nepalese steamers for goods and public movement from Nepal to other countries.

Trade, Security & Inland Waterways

Towards trade cooperation, the two sides decided to develop inland waterways within the trade and transit framework for a seamless movement of cargo between the two countries.

During the discussions, Oli also raised concerns over widening Nepal’s trade deficit with India and urged Indian Government to encourage more Nepali exports.

With regard to security, he said, “We have strong relations when it comes to the aspect of security. We will work together to stop misuse of our open border.”

Green Revolution and Connectivity                                                                                                                  

As part of visit to the Uttarakhand’s GB Pant University of Agriculture and Technology, where he was awarded the honorary doctorate (Doctor of Science), Oli urged India’s support for revolutionizing agriculture in Nepal.

“Both India and Nepal are agriculture-based economies and should work together in boosting agricultural output,” Oli said in a statement.

On the occasion, Oli also welcomed the University’s collaboration in revolutionizing the Nepali agriculture sector saying, “Looking towards Indian varsities like GB Pant, one of the harbingers of the Green Revolution, who can aid us in achieving our objectives in this regard… I think if the university and Nepal collaborate in the sector, agriculture in our country will get revolutionized through a technological boost.”

He further said India’s and the University’s support are key for strengthening the two agricultural universities in Nepal that are in the initial stages of development with the need for research support.

In response, Uttarakhand Governor K.K. Paul expressed the University’s willingness to collaborate with the Government of Nepal in the fields of horticulture and herbal farming.

Lauding Oli’s visit, Chief Minister of Uttarakhand Trivendra Singh Rawat urged for improved connectivity between Nepal and Uttarakhand, especially in the border areas of Tanakpur and Dharchula.

He also pitched for direct flights between Kathmandu and Dehradun.

Call for Investment

As part of the visit, Oli held a round of discussion with the Indo-Nepal business community, wherein, he urged the Indian business community to invest in Nepal.

Citing Nepal’s investor-friendly environment, Oli pitched for investments across infrastructure, tourism, IT, agriculture and power sectors.

Stating that Nepal has fair and investor-friendly policies along with a supportive policy regime, Oli called on the businessmen for massive foreign investment.

“Indian investors have invested across the globe, so why not go to the next-door Nepal. Geographical proximity, easy access and cultural similarities are all there to make you feel good about Nepal,” noted Oli.

Potential Market & Incentives

Speaking on market opportunities Nepal has for the foreign investors or collaborators, Oli said, “Investors always look for market. Look at Nepal’s position. For us, market is not a problem, but production is a problem. It is lying between two vibrant economic powers with huge population of the world — India and China. That assures you of a promising market of 2.5 billion people. Seize the opportunity.”

Lauding European markets for their duty-free access to Nepal, he said, “We are ready to listen to you, your advises and suggestions. We want to know your views. We are committed to further improving our business climate.”

Wooing foreign investors, he noted that Nepal offers attractive incentives compared to other countries by way of simplified tax regimes and reduced tariffs.

He also informed about Nepal’s plans to establish Special Economic Zones (SEZ) in the cities sharing borders India along with offering necessary incentives to the industries, forming liberal labor laws, among others.

First International Cross-country Pipeline

As part of the visit, Oli and Modi inaugurated the long-awaited initiative of Rs 3.24 billion worth India-Nepal petroleum pipeline from Motihari to Amlekhgunj. This is the first international cross-country pipeline project in India.

Under the project, Indian Oil Corporation will supply Nepal’s major petroleum products from its Barauni Refinery and Raxaul depot in Bihar to Amlekhganj depot of Nepal Oil Corporation.

The 69-km-long pipeline project involves setting up of a 10.75-inch diameter cross-country pipeline that stretches from Motihari in Bihar to Amlekhganj in Nepal, with 32.7 km of pipeline in the Indian territory and 36.2 km in the Nepali territory.

The design-throughput capacity of this pipeline, which has pumping facilities at Motihari, stands at 2.0 million tons per annum.

This major project signed in 2015 is expected to be completed by March 2019.

The End Note

Overall, Oli’s recent visit to India has opened avenues for new form of bilateral cooperation between Nepal and India contributing to a strong South Asia. Now, it’s time for wait and watch!

The post Oli India Visit 2018: India, Nepal Strengthen Ties, Target Next-level Development appeared first on Nepali Sansar.

The 900-MW capacitive Arun III hydropower project, to be built on Nepal’s Arun River, is drawing a huge investment from a wide variety of organizations belonging to the banking and financial services sectors.

In a recent move, India’s banking giant State Bank of India (SBI) announced its INR 80 billion investment for the project.

SJVN Limited and SBI entered into an informal agreement in this regard considering this investment as loan for the project. SJVN is the Indian PSU taking up the project construction.

“The Director Committee Meeting of the bank is due to make the recommendation. They soon will decide over. As of now they have decided over the loan extend and the interest rate over it has been finalized. The Rs. 1.4 trillion over the project will be expended for the construction of the structures and additional Rs. 11 billion for the transmission lines,” reads a statement by a source.

According to the sources, the Everest Bank Limited (EBL) and Punjab National Bank (PNB) are also investing in this prestigious project. “EBL will also invest INR 2.25 billion in the Arun III project,” the source added, while PNB’s investment stands at INR 5 billion.

This project, upon completion, will provide Nepal with 21.9 percent of the total electricity produced in a year, which equals to 197 MW, with 86 crore free units annually.

Besides, Nepali banks are also likely to offer Rs 4.06 billion as a bridge loan for the project.

Apart from the banking sector, the Government of India has already approved a sum of Rs 92 billion to be invested by SJVN.

With its total Rs 25 billion investment, SJVN will take the complete charge of the project for 25 years period excluding the construction time.

Post the finalization of investment, the Investment Board of Nepal will issue the license for the project.

“The Nepal Investment Board will soon issue the license for the construction of the project. It will not take more than a month meaning the license will be granted by mid-June as of now,” said an official representing the Board.

The Prime Ministers of India and Nepal, Khadga Prasad Oli and Narendra Modi, have recently laid foundation stone for Arun III hydropower project that is expected to be completed by September 2022.

The post Investment Pouring in for Nepal’s Arun III Hydropower Project appeared first on Nepali Sansar.

 “We are working very hard to bring in electric vehicles in Nepal. We don’t have a timeline. To some extent, we are constrained by the availability of charging facilities. But a Tata EV will be available on the streets of Nepal soon,” Sujan Roy, Head of Passenger Vehicles (International), Tata Motors said in a statement.

Making an official announcement in this regard, Roy said they are considering this move as a social responsibility.

“We have the vehicles being manufactured at our plant every day, we would be happy to bring them to Nepal. Yes, the concessions available on EVs are attractive, but we consider it as a social responsibility to bring EVs to Nepal,” he added.

Explaining on pricing strategy, Roy further explained that the prices will come down gradually with the advent of technologies.

“I would say that the tipping point in the EV market will soon be reached and electric cars will be as ubiquitous as mobile phones,” noted Roy.

It is noteworthy here that Tata has recently released its first batch of the EV model of its Sedan Tata Tigor in Gujarat, India.

Upon implementation, Tata would compete with the likes of BYD, Mahindra and KIA which have already come up with similar initiatives for Nepal.

This move comes an encouragement to the Nepal Government that has been pitching for clean energy solutions as part of eco-friendly policies.

EVs, Energy Security for Nepal

“EVs will provide a measure of energy security for Nepal. As of now, the price of oil affects us in many ways, but when we switch to electric, the situation will be different,” says Nepal’s former Finance Secretary Rameshore Khanal.

In line with Roy’s official aforementioned statement, proper standards that support full-fledged operation of EVs and lack of sufficient number of charging stations continue to exist as prime reasons limiting EV adoption in Nepal.

According to Khanal, Nepal Government is yet to come up with the relevant standards to give needed boost to EV implementation across the country.

Challenges aside, finally Clean Nepal is on the way!

The post Leading Auto Giant Announces EVs In Nepal appeared first on Nepali Sansar.

“In order to meet the growing demand, we are considering Nepal a big market that can fulfill our needs,” Bangladeshi Ambassador to Nepal Mashfee Binte Shams said in a recent statement.

Bangladeshi Ambassador to Nepal feels that the latest move by the Government of Bangladesh will also encourage private sector investment in the country’s energy sector.

“After Bangladesh Government’s investment comes into Nepal’s energy sector, we hope the private sector will also step forward,” read the envoy’s statement.

Through this move, Bangladesh looks at import of electricity from Nepal through the hydropower projects planned with this investment.

Meanwhile, India is also planning cross-border transit facilities to Nepal through Bangladesh. This includes the import of power and grid expansion between the two countries.

“I don’t think that there will be a problem in importing electricity from Nepal. India is positive and has agreed to allow transmission of electricity to Bangladesh from Nepal. We are ready to import electricity from Nepal after meeting Nepal’s requirements as much as can Nepal can export to us,” noted the Ambassador.

The official further informed that the “new sub-regional framework like the Bangladesh, Bhutan, India, Nepal (BBIN) which has already been implemented, is changing the regional landscape in the field of connectivity, trade, commerce, transit, motor vehicle, energy and grid”.

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