Nepal Energy & Economy News

In a powerful push for industrial independence, Prime Minister KP Sharma Oli convened a high-level briefing at Baluwatar, urging swift action on two major projects: natural gas production in Dailekh and iron mining in Dhaubadi, Nawalparasi. With backing from China's Geological Survey, Nepal has discovered a massive 112.1 billion cubic meters of methane gas in Bhairavi-1, Dailekh — a historic milestone after drilling 4,020 meters deep!

This marks the first-ever successful petroleum exploration in Nepal, with test samples now being analyzed in Chinese labs. PM Oli has directed that production of natural gas must begin within a year, assuring full budgetary and legal support. Meanwhile, Dhaubadi Iron Company Limited presented promising updates on the 99 million-ton iron ore reserve, capable of supporting domestic steel production until 2185 AD.

The joint Nepal-China energy venture, backed by Rs 2.4 billion in Chinese support, follows agreements from 2072 and 2075 BS. The Department of Mines and Geology has hailed the Dailekh breakthrough as "historic." This milestone follows decades of effort since initial surveys in the 1960s.

The 37.5 MW Chimkhola-Mangale-Rahughat Hydropower Project in Myagdi's Raghuganga Rural Municipality has officially entered its trial production phase. This milestone marks a significant step forward in Nepal's renewable energy ambitions.

After 15 days of testing, the electricity will be linked to the central grid via a 14 km, 220 kV transmission line with 49 towers. Civil works began in Mangsir 2077 BS, with an estimated Rs 14 billion development cost. The project is the first operational project in the Rahughat basin.

The Nepal government has unveiled a transformative budget plan for 2082/83, presented by Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel. Key focus areas include trade balance enhancement, promotion of domestic production, attracting skilled Nepalis abroad, and innovation-driven youth employment.

Customs Duty Changes: Raisins from SAARC: 7.25% ➡️ 6% | Beet sugar: 30% ➡️ 15% | Sugar: 30% ➡️ 15%. These adjustments favor regional trade agreements while regulating luxury imports.

Equalization Grants: NPR 148 billion allocated — NPR 60.66 billion to provinces and NPR 88.97 billion to local levels. However, conditional grants continue to dominate with over NPR 200 billion.

Finance Minister Bishnu Prasad Poudel presented a bold budget of Rs 1964.11 billion for fiscal year 2082/83, revealing a significant deficit of Rs 600 billion. With a revenue target of Rs 1480 billion, the government aims to surpass last year's collection. However, current collections stand at only Rs 967.82 billion (68.19%) — raising serious doubts about feasibility.

Key Concerns: No tax hike on EVs, but no bold revenue plan either. The Kathmandu-Terai Madhes Expressway received just Rs 24.49 billion, far below its actual need. The government claims 4,600 fewer projects, yet the National Planning Commission reported only 1,327 projects in the Infrastructure Bank — raising transparency concerns.

Aarya Hotel & Spa, a luxury heritage hotel in Thamel, has opened with a staggering investment of Rs 2.5 billion. The brainchild of Krishna Simkhada, a non-resident Nepali from Dhading who spent 25 years in Japan, the hotel features 72 rooms with traditional Newari details — peacock and desert windows, tundals, falchas, and teliya bricks made in Bhaktapur.

Room tariffs range from $160 to $1,600 per night. The hotel features rooftop dining at 'Sora' restaurant and 'Sky Line Sora' with a glass skywalk. Simkhada hopes Aarya Hotel will redefine heritage tourism in Nepal.

According to the Department of Tourism, 402 climbers from 53 nations have secured permits to climb Mount Everest this season, including 74 female climbers. Rs 684 million has been collected in royalties. The path to Camp III has officially opened, with skilled Sherpa teams fixing ropes to the summit.

New Rules: The 'Tourism Bill 2081' now requires climbers to first scale a peak above 7,000 meters before receiving an Everest permit. Climbers must also submit a medical fitness certificate issued within the last month.

TikTok has taken its toughest action yet in Nepal, removing a record 3.1 million videos between April and December 2024. Even during the TikTok ban period (November 2023 to August 2024), the platform continued its cleanup. The fourth quarter alone saw nearly 1.5 million Nepali videos removed.

The aggressive enforcement has sparked debates over digital rights, with activists warning of potential suppression of legitimate expression. TikTok insists its global Community Guidelines are applied fairly and transparently.

Indian Ambassador to Nepal Naveen Srivastava briefed Prime Minister KP Sharma Oli about the latest India-Pakistan tensions following the April 22 terrorist attack in Pahalgam, Jammu & Kashmir. PM Oli reiterated Nepal's firm stance against all forms of terrorism, asserting that Nepal will not allow its soil to be misused.

The Nepali Embassy in New Delhi issued an urgent notice urging Nepalis in India to stay alert and follow official safety instructions amid escalating tensions.

The number of Nepali citizens killed while serving in the Russian army has tragically risen to 73, with the confirmation of 23 more deaths since December 21. Estimates suggest at least 1,500 Nepalis were recruited. Many youths were trafficked via India, Gulf countries, and Malaysia to Moscow.

So far, only 5 bodies have been repatriated to Nepal, and not a single family has received compensation. Eight Nepalis are reportedly held hostage in Ukraine. The Nepal government still lacks a full count of its citizens involved in the war.