Nepal Exports Surplus 300 MW of Electricity to India Daily

The Nepal Electricity Authority (NEA) has started exporting over 300 MW of electricity daily to India. The NEA is selling electricity at a rate of Rs 8.38 (IC 5.24) per unit. In addition to exports, Nepal's domestic electricity consumption has also risen, with a peak load of up to 1,900 MW being registered daily. 

Since June 2, 2022, Nepal has been selling the surplus monsoon electricity through competition in the day-ahead market of the Indian Energy Exchange Limited (IEX). Last year, Nepal earned revenue of Rs 11 billion from electricity exports to India.

Nepal Contemplates Resuming Sending Domestic Workers to UAE Following Request

The United Arab Emirates (UAE) has requested Nepal to resume sending domestic helpers following the renewal of their bilateral labor agreement for the next four years. The UAE delegation informed Nepal that they have implemented a new law to protect the rights of domestic workers. Nepal, which imposed a ban on Nepali women working as housemaids in Gulf countries in 2017, is now considering the UAE's proposal pending approval by the Cabinet. The ban led to concerns about infringement on individual mobility rights, and some Nepalis resorted to illegal means, such as traveling through India, to work in the UAE.

The resumption of sending domestic helpers from Nepal to the UAE has the potential to significantly benefit the Nepalese economy. However, it is vital to prioritize the protection of workers' rights and welfare by implementing and enforcing robust labor laws and support mechanisms.

Nepal and World Bank Launch $275 Million Project to Boost Regional Transport and Trade Connectivity

The Government of Nepal and the World Bank have launched a $275 million project aimed at enhancing regional transport and trade connectivity in Nepal. The project aims to reduce trade and transport costs, improve transit time, and boost connectivity along selected corridors in the country. It includes upgrading a 69-kilometer section of the Butwal-Gorusinghe-Chanauta road to a climate-resilient four-lane highway, which is expected to reduce travel time by 30%. 

Additionally, the project will establish market areas with internet and trade information facilities to enhance economic opportunities, particularly for women entrepreneurs and traders. It will also support Nepal's implementation of the Motor Vehicle Agreement with Bangladesh, Bhutan, India, and Nepal, facilitating the smooth passage of goods and passenger vehicles across borders. The project will be implemented by various ministries, including Physical Infrastructure and Transport, Industries, Commerce and Supplies, and Forests and Environment.

Nepal's Government Prevails in Ncell Tax Dispute but Loses Potential Revenue of Rs. 57 Billion

The International Centre for Settlement of Investment Disputes (ICSID) has ruled in favor of the Nepal government in a tax dispute with Ncell, a telecom company acquired by Malaysian firm Axiata in 2016. The ruling has saved the government from potential compensation claims of up to Rs. 66 billion from Ncell and 

Axiata, but it also restricts Nepal's ability to recover additional taxes from the company. 

Ncell had already paid the capital gains tax (CGT) determined by the Supreme Court during the tribunal's proceedings. However, the Large Taxpayers' Office determined an additional tax liability of around Rs. 57 billion based on a provision in the Income Tax Act. The ICSID tribunal's verdict, while not explicitly stating that Nepal should refrain from imposing further taxes, provides indications that such actions could violate the Income Tax Act and the bilateral investment treaty with the United Kingdom. The case is still pending in the Supreme Court, which will interpret the law regarding the tax dispute.

Private Sector Investments at Risk as Gautam Buddha International Airport Fails to Reach Full Operation

The private sector in Nepal is concerned about the risk to their investments of approximately Rs 80 billion in the Gautam Buddha International Airport (GBIA), as the airport is not operating at full capacity. Despite being inaugurated in May 2022, the lack of regular international flights has left the private sector worried about the viability of their investments. Industrial entrepreneurs fear that their investments in various sectors, including hotels and tourism, may go to waste if the airport does not become fully operational soon.

The private sector is demanding that the government take immediate action to create an environment for the airport's full operation. They emphasize the urgent need for the government to intervene and ensure the airport's full functionality to safeguard their substantial investments.

Overall, the private sector in Nepal is concerned about the lack of progress in making the Gautam Buddha International Airport fully operational, which puts their investments of around Rs 80 billion at risk. They are urging the government to take immediate action to enable regular international flights and ensure the airport's efficient functioning to protect their interests in the tourism industry.

Record-Breaking Year for Manakamana Cable Car as Passenger Count Crosses One Million

The Manakamana cable car service in Nepal has achieved a significant milestone by transporting over one million passengers during the fiscal year 2022/23. This is the highest number of passengers in the past 25 years, with an impressive 150,000 individuals using the service during Jestha (mid-May to mid-June) alone. Rajesh Babu Shrestha, the director of the company, expressed his delight, stating that they served an astonishing 1,021,239 passengers this fiscal year, surpassing the previous monthly record set in Jestha 2018/19.

The cable car service has gained widespread popularity and convenience, with an average of 4,700 passengers utilizing it daily during Jestha of the current fiscal year. Out of the total customer base, approximately 269,000 passengers were from India, accounting for 26.41% of the overall count, while Nepali passengers made up 69.08%. Encouraged by the remarkable success, the company anticipates further growth, projecting an estimated 1.15 million passengers by the end of the year.