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Encouragement for small/medium projects

Energy crisis has lost its novelty now and has become a part of our life. Having to collect drinking water after waiting for hours, cross rivers riskily on a tube or by hanging on a tuin (rope bridge) to go to school or other works and other hardships have become part of Nepali lifestyle even as other countries have taken a huge leap in development. The government data claims that electricity has already reached to 60 percent of the population, and looking at the poles and wires strung for distribution of electricity may justify that claim. But the reality is opposite with 60 percent of the population deprived of electricity. The difficult geographical terrain and scattered settlements make taking electricity to every settlement virtually impossible. The government data claims that just 23 percent of the people are below the poverty line but the recently updated data of the United Nations Conference on Trade and Development (UNCTAD) shows that 39 percent of Nepalis are below the poverty line as per international standards. Being below the poverty line means inability to spend for basic minimum living standard. The fact that one needs citizenship certificate and land ownership certificate to get connected to the government distribution system means a large number of land-less population does not get electricity connection. This has raised questions about credibility of the government data on access to electricity.

Access to electricity does not merely mean getting connection and holding a bulb, but multi-dimensional use of electricity. Many consumers still are forced to use electricity only for light. A huge amount is going abroad in import of liquefied petroleum gas (LPG) even though using electricity for cooking is a cheaper option due to lack of regular supply and interest of the consumers to substitute LPG with electricity. Similarly, electricity can be used to power trains, metro, monorail, trolleys and other means of transportation but the possibility has been limited merely to science books in Nepal. Such pathetic is the state of Nepal Electricity Authority (NEA)—responsible for generation, transmission and distribution of electricity—that it has not been able to even provide sufficient electricity for lighting purpose far from powering industries. The country has to face power cuts for over 12 hours a day during the dry season due to the huge disparity between demand and generation of electricity. The NEA issues load-shedding schedule to inform the Cast Iron TeapotsMens Amber BraceletsWholesale Wooden Tea CupsKids Sleeping Bags but it cuts supply even when there should not be power cuts from time to time leading to damage of electrical/electronic appliances. Service-providers like the NEA and the Nepal Telecom (NT) do not even fulfill the formality of apologizing for obstruction of services without prior information due to lack of a legal provision in Nepal to sue for losses incurred due to substandard and irregular service, and get compensation.

The measures to address energy crisis include construction of enough hydropower projects, maximizing use of solar energy at public places and government offices, and connecting additional electricity generated by big corporate houses, shopping malls and industries to the national transmission line. Construction of big hydropower projects need big investment and is not possible through efforts of Nepali investors alone. We should, therefore, also try to construct small and medium projects, and many Nepali investors have invested on construction of such small and medium projects in recent years. But these projects have been facing uncertainty in lack of timely power purchase agreement (PPA).

The government is preparing a policy to sign PPA at a single flat rate for projects with installed capacity of up to 100 MW after the government made some policy arrangements in the budget for the current fiscal year to promote construction of small and medium projects. Flexibility should be maintained to ensure that the PPA rate can be reviewed on the basis of the prevailing cost of constructing projects and rate of inflation while determining the rate in such a manner. It is also necessary to hold adequate discussions with the investors concerned before bringing such policies of long-term significance.

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Market’s Data

Index Current Points Change % of +-
NEPSE 118376 8.19 0.007%
Sensitive 25574 1 0.004%
Float 8434 0.38 0.005%
Sen. Float 7165 0.2 0.003%
Banking 112213 -0.4 -0%
Hotels 201509 -1.82 -0.001%
Development Bank 91981 9.75 0.011%
HydroPower 212668 23.39 0.011%
Finance 55321 0.76 0.001%
Insurance 517993 231.46 0.045%
Manu & Pro 202082 111.2 0.055%
Others 76481 -19.97 -0.026%
Total Traded Amount Rs: 824656226
Total Traded Shares: 1050314
Total Transactions: 2685
Currency Unit Purchase Sale
Indian Rupee
100
160
160.15
US Dollar
1
105.53
106.13
EURO
1
117.99
118.66
Pound Sterling
1
162.45
163.37
AUS Dollar
1
75.69
76.12
Singapore Dollar
1
74.90
75.33
Japani Yen
10
8.67
8.72
Chinese Yuyan
1
16.52
16.61
Hongkong Dollar 1 13.62 -
HALLMARK GOLD 50850/per tola
TEJABI GOLD 50600/per tola
SILVER 680/per tola
Petrol(MS)
NRs 106.50/L
Diesel(HSD)
NRs 84.00/L
Kerosene(SKO)
NRs 84.00/L
Aviation Turbine Fuel
NRs 118.00/L(Duty Paid)
Aviation Turbine Fuel(Jet A-1)
USD 1325.00/KL(Bonded)
LP Gas NRs 1435.00/cyl

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Seven expectations from 2070

Nepal is gradually corroding in political, economic, social sectors. Every year comes with new energy and vigor but ends with disappointing and failure.

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