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As the majority of insurance companies’ paid-up capital is still below the regulatory requirement even after mid-July, 2023, Nepal Insurance Authority (NIA) is mulling to allow companies to issue rights shares to increase their capital base.  

The right shares issuance facility will be given to those companies who've completed the merger and those whose paid-up capital will reach the regulatory requirement after issuing 30 percent right shares.

According to NIA sources, the authority’s board meeting scheduled for Thursday will take the final decision. “Many companies have not yet raised the paid-up capital required by the regulator. We will permit the issuance of the right shares for companies that have chosen to merge. Additionally, we will allow companies that have not opted for a merger but would reach the regulatory capital limit by issuing 30 percent right shares to proceed with right shares issuance,” said a senior official of the authority.

The NIA forced insurance companies to go either for mergers or acquisitions by raising the minimum paid-up capital requirements for both life and non-life insurers. The regulator has increased the paid-up capital of non-life insurance companies to Rs 2bn while it is Rs 5bn for life insurance companies. A year ago, NIA directed the non-life insurance companies and life insurance companies to meet the regulatory requirement by mid-April 2023. With the majority of companies failing to meet the regulatory limit, the NIA extended the deadline by three months to mid-July, 2023. 

After the NIA issued the directive on paid-up capital increment, only seven insurance companies (three life insurance companies and four non-life insurance companies) met the regulatory limit. Among the life insurance companies, the paid-up capital of Nepal Life Insurance Company, Himalayan Life Insurance Company, and National Life Insurance Company is above Rs 5bn. Four non-life insurance companies—Shikhar Insurance, Siddhartha Premier Insurance, IGI Prudential Insurance, and Sagarmatha Lumbini Insurance have also met the regulatory obligation. 

With NIA pushing for capital increment, the majority of insurers have opted for mergers. However, even after the merger, many of them are yet to meet the regulatory requirement. 

In the case of insurance companies having foreign investments such as MetLife, and The Oriental Insurance, their foreign promoters are said to be injecting additional capital to meet the regulatory requirement.  NIA sources say Prabhu Insurance is trying to bring foreign partners while Nepal Insurance is planning to raise capital by selling its assets. 

The Rastriya Swatantra Party (RSP) on Wednesday registered a proposal of public importance at the House of Representatives demanding fair investigation into the 100 kg gold smuggling case.

Party lawmakers along with President Rabi Lamichhane on behalf of the RSP filed a resolution proposal at the Parliament this afternoon.

In the proposal, the party said that the government should be accountable on the issue of gold smuggling and the Home Minister should answer in the Parliament.

The RSP has demanded that the government should study and investigate from the point of criminology that why criminals are easily using Nepal as a transit hub for gold smuggling.

Earlier on Wednesday, the Revenue Investigation Department had recovered 100 kg gold, passed undetected from the customs office of the Tribhuvan International Airport, from Sinamangal.

Police have already arrested 16 persons for their alleged involvement in the gold smuggling.

Tension ran high in Bardibas-based Bardibas Hospital of Mahottari on Wednesday after a patient died during the course of treatment.

Hundreds of locals stage a demonstration saying that the patient died due to the negligence of the hospital.

A large number of security personnel has been deployed in and around the hospital to prevent any untoward incident.

Tension erupted after the locals tried to enter the hospital.

Umesh Kumar Mahato (36) of Bardibas Municipality-14 was taken to the hospital on the night of July 19 after he complained of chest pain.

Relatives of the deceased alleged that the condition of the patient became complicated after health workers on duty did not treat him properly.

After there was no improvement in the patient’s condition, he was taken to Kathmandu for treatment but breathed his last on the way.

Deceased’s brother Mahesh Kumar Mahato said that his brother died due to the negligence of the hospital.

“There was no doctor in the hospital during the night time. There was no medicine in the hospital either. The nurses delayed giving the medicines, brought from outside at the advice of the doctor, to the patient,” Mahesh said, adding, “Lab was also not open. We were forced to go outside after there was nothing in the hospital. Doctors took my brother’s life.”

He said that the hospital also did not inform them that the patient had a heart problem.

They have demanded that the doctors and nurses among others involved in the treatment of the patient should be punished.

The country has added less electricity to the national grid in the fiscal year 2022/23 compared to the fiscal year 2021/22. Around 492 MW of electricity has been added to the national grid in the last fiscal year. A total of 735 MW of electricity was added to the national grid in FY 2021/22.

With electricity generated from more than 27 power projects being connected to the national transmission system in the last fiscal, the total installed capacity of hydropower plants operational in the country has reached 2,759 MW by mid-July 2023. However, it is less than the government target. The government had set a target of adding 717 MW of electricity to the national grid in FY 2022/23. According to Nepal Electricity Authority (NEA), a total of 21 hydropower projects and six solar power projects began their commercial production in the last fiscal year. 

The construction of the Solukhola (Dudhkoshi) Hydroelectricity Project, the largest hydropower project developed by the Nepali private sector, was completed in the last fiscal year. Developed by Sahas Urja, the 86 MW project commenced its commercial production on 1 March 2023. 

The Nepal Electricity Authority (NEA) has earlier projected an additional 811 MW of electricity will be added to the national grid in FY 2022/23. The state-owned power utility had expected the 111 MW Rasuwagadhi, 42.5 MW Sanjen, 14.8 MW Upper Sanjen, and 102 MW Madhya Bhotekoshi to come online by the end of the current fiscal year. However, these projects failed to complete their construction within the last fiscal year. 

The 54 MW Super Dordi ‘B’ in Lamjung and the 2 MW Solar Power Project in Nawalparasi, the 6.8 MW Solar Power Project in Morang, and the 10 MW in Banke have been already connected to the national grid. The 10 MW Makarigad Project also started commercial production in the last fiscal year.  

The government has targeted to add approximately 900 MW of electricity to the national transmission system in the current fiscal year. According to the federal budget 2023/24, the completion of projects promoted by the Nepal Electricity Authority such as the 111 MW Rasuwagadhi, 102 MW Madhya Bhotekoshi, and 42.5 MW Sanjen hydropower projects, as well as hydropower and solar projects initiated by the private sector will help the country’s total installed capacity to reach 3,600 MW by the end of FY 2023/24.

Currently, projects with an accumulative capacity of 3,280 MW are under development and once they are completed, the national grid will have around 7,000 MW of electricity.

On the transmission line part, the process of constructing the New Butwal-Gorakhpur 400 kV transmission line has moved ahead. 

The government in the federal budget has announced that project development agreements (PDAs) for strategically important projects like the West Seti Hydropower Project, Seti River 6 Project, and Lower Arun Project will be signed, and development work will be commenced.

Similarly, the government also plans to determine the investment modality for reservoir-based hydro projects such as the 1200 MW Budhigandaki Hydropower Project and 635 MW Dudhakoshi Hydropower Project and begin their construction. 

As for the hydropower projects such as Upper Arun (1061 MW), Chainpur Seti (210 MW), Jagdulla (106 MW), Tamakoshi-5 (99.9 MW), Simbua River (70.3 MW), and Ghunsa River (77.5 MW), the government is planning to take ahead these projects under the co-financing modality of all three tiers of government.

At least 4,289 dengue cases have been reported across the country.

According to the Epidemiology and Disease Control Division, the number of dengue cases was 2,930 as of 15 July.

Koshi Province has recorded the highest 2,754 cases followed by 776 in Bagmati, 344 in Gandaki, 316 in Sudurpaschim, 166 in Lumbini, 22 in Madhes and 20 in Karnali.

Ten districts have been hit hard by the disease.

The affected districts are Sunsari, Dhading, Kaski, Darchula, Kathmandu, Sankhuwasabha, Myagdi, Kanchanpur, Rupandehi and Morang where 3,671 people have been infected with the disease.

Dengue virus spreads among people through the bite of an infected Aedes species of mosquito.

The Division projects that the virus risks are high between the Nepali months of Asar, Shrawn, Bhadra and Ashoj.

An inspector at the National Investigation Department reportedly died in a motorcycle accident at Khoriya Tole in Ishwarpur Municipality-9 of Sarlahi on Tuesday.

The deceased has been identified as Basant Shah (29) of Ishwarpur Municipality-6, according to Naresh Raj Subedi, SP at the District Police Office.

The incident occurred while he was on his way home after the office.

His body was retrieved today.

Further investigation into the case is underway, District Police Office Spokesperson Dipendra Panjiyar Tharu.

'The Red Suitcase' directed by Fidel Devkota has been selected for the 80th Venice Film Festival.

The Nepali film, which portrays the impact of foreign employment in Nepali society, was selected for the festival under the Horizon category, said Devkota.

This is the third Nepali film that made it to the Venice Film Festival after 'Kalo Pothi' and 'Seto Surya'. Both of the films had foreigners as producer and cinematographer.

'The Red Suitcase' has become the first Nepali film completely made by a domestic production group to be selected in the Venice Film Festival.

Director Devkota wrote the screenplay of the film that features artists such as Saugat Malla, Bipin Karki, Pravin Khatiwada and Shristi Shrestha among others.

The Venice Film Festival will be held from August 30 to September 9 in Venice, Italy.

The price of gold has increased by Rs 500 per tola in the domestic market on Wednesday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 112, 700 per tola today. It was traded at Rs 112, 200 per tola on Tuesday.

Meanwhile, tejabi gold is being traded at Rs 112, 150 per tola. It was traded at Rs 111, 650 per tola.

Similarly, the price of silver has increased by Rs 10 and is being traded at Rs 1, 465 per tola today.