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The main opposition CPN-UML lawmakers obstructed a meeting of the House of Representatives (HoR) on Friday. The lawmakers stood from their seats in protest and obstructed the meeting, saying that the Parliament could not start its business until the government clarified whether the 'jalahari' installed at the sanctum sanctorum of the Pashupatinath Temple is made of gold or brass. Following the protest, Speaker Devraj Ghimire gave time to the UML's Chief Whip Padam Giri to speak. Giri said that the House could not proceed ahead with its business until the government responded to the allegation made by Lekhnath Dahal, a ruling party lawmaker, that the 'jalahari' installed at the Temple when UML Chair KP Sharma Oli was the Prime Minister was not gold but brass. He reiterated that the House session could not proceed with its business until the government investigated whether the 'jalahari' in Pashupatinath Temple is made of gold or brass, and responded to the allegation. Similarly, UML Parliamentary Party deputy leader Subas Chandra Nembang said that it was not for the sake of fun that the main opposition party has obstructed the meeting, but for the seriousness of the false allegation that a 'responsible' lawmaker from a 'responsible' party has leveled against the former prime minister. The UML lawmakers expressed regret, stating that the ruling party lawmakers made a serious accusation against them that they had committed corruption by offering the 'jalahari' made of brass instead of gold. They demanded that an investigation be made to find out the truth. Speaker Ghimire time and again requested the UML lawmakers to take seats and cooperate in allowing the House meeting to proceed ahead as per the parliamentary process. Despite the Speaker's repeated requests, the UML lawmakers picketed the rostrum, shouting slogans. The Speaker then adjourned the meeting for 20 minutes after his requests went unheeded even after the sloganeering that lasted for about five minutes.  

While non-life insurance companies saw their business grow by single digits in the nine months of the current fiscal year, the profits of the insurers have increased by double digits. The financial reports for the third quarter of non-life insurance companies show their profits have increased by 26.68 percent. Of the 17 non-life insurance companies operating in Nepal, all have published their third-quarter reports except for National Insurance. In the review period, the 16 non-life insurance companies earned a net profit totaling Rs 4.43bn, up Rs 933.9m from Rs 3.5bn in the same period of FY 2021/22. As the country grapples with the economic slowdown, the insurance business has taken a beating in the current fiscal year. Both life and non-life insurance business grew in single digits in the first nine months of the current fiscal year. According to the Nepal Insurance Authority (NIA), the premium collection of non-life insurance companies stood at Rs 30bn in the nine months of the current fiscal year compared to Rs 28.70 billion during the same period of the last fiscal year. The premium collection of non-life insurance companies has grown by only 4.58 percent. Insurers say their profits improved mainly due to the high-interest rates on deposits of banks and financial institutions. Insurance companies keep most of their investable capital in fixed deposits of commercial banks. Over the past year, institutional depositors such as insurance companies have benefitted from high deposit rates as banks struggled with a prolonged liquidity crunch. According to insurers, their profits may increase further after the actuarial valuation. However, such an assessment will be done after the completion of the fiscal year, during which up to 10 percent of the insurance fund can be transferred to the profit and loss account. According to Sunil Ballabh Pant, CEO of NLG Insurance, the expenses of companies have also declined following the mergers. Among the non-life insurance companies, the government-owned Rastriya Beema Company recorded the highest profit of Rs 686.43m. Siddharth Insurance (now Siddhartha Premier Insurance) posted the second highest net profit at Rs 392.65m followed by Oriental Insurance at Rs 392.24m.

In the third week of March, the British International Investment (BII) and Dolma Impact Fund announced a combined funding of Rs 1.98bn to WorldLink Communications Ltd in their series B investment. WorldLink, which had already received Rs 1.35bn in investment from BII in October 2019, has been focusing on expanding its network coverage across Nepal. ApEx talked to the company’s CEO Keshav Nepal to know about the current focuses of WorldLink and its future plans. Excerpts:   How is WorldLink Communications utilizing the Rs 1.98bn funding from the British International Investment (BII) and Dolma Impact Fund? What areas the company is focusing on with the investment? The business model of an internet service provider (ISP) is more focused on capital expenditure, and money is spent mostly on network expansion and consumer equipment like router setup boxes that are offered for a deposit of just Rs 500 while the ultimate cost can come around Rs 8,000 in whole. So, we are spending the funds on capital expenditure. In Nepal, ISPs are more than plentiful in urban areas, but few only in rural areas. Our current focus is on increasing capital expenditure in rural areas than in urban areas. How do you see the evolution in the internet connectivity landscape in Nepal? According to official statistics, there are roughly 6.6m households in Nepal, and around 92 percent of them are electrified which is high for a developing nation. Smartphone penetration is equal to the literacy rate which is around 76 percent of the population. This suggests that those who can read and write use smartphones and the internet more frequently. I don’t see any affordability issues currently because, in Nepali households, there is also a sharing culture on the internet. For Rs 1,000 worth of monthly internet subscriptions, the customer shares the Wi-Fi network with their neighbors. And ultimately, the cost comes to around Rs 100 per person per month, which is affordable as it also avoids the cost of mobile data payments, meet-up transportation costs, and more. If we compare the census data from 2011 to 2021 for internet usage from fixed broadband, we can notice a substantial increase in connectivity and development over the course of the decade, from three percent of total households to 38 percent. So, this evolution has been great. ISPs in Nepal reported massive growth in business after the start of the Covid-19 pandemic. How is the business growth of WorldLink?  Although online and digital communication was fairly prevalent in Nepal during Covid-19, I don’t believe the pandemic had a major impact on the expansion of WorldLink. WorldLink is a premium brand compared to other companies. Therefore, those who could afford it had already subscribed. Those who were in a dilemma if they should subscribe or not were among the new subscribers during the pandemic. As we’ve expanded our services to rural areas in the past couple of years, we have been growing to around 175,000 customers per year; it was around 100,000 per year before and during the pandemic. Tell us about the company’s presence in Nepal.  Now, there are almost 800,000 households who are subscribed to WorldLink. Out of 6,743 wards in the country, we are present in about 3,000. WorldLink envisages expanding services to every ward in Nepal. How will internet business in Nepal evolve in the coming days as ISPs are now competing to give larger speed internet services? The new companies are attempting to reduce the price and get a larger market share through a marketing gimmick. However, the expense of the business will eventually increase, causing the price to go up. Because the business can’t sustain with very low rates. I think internet business leans toward when the affordable rate meets with the highest quality. There could be a variety of challenges customers can come through including latency (ping), fluctuations in connectivity, and router problems and I think addressing these issues and providing better experiences to customers will determine the caliber of internet business. What new areas in internet services WorldLink is planning to get into to keep up with the changes? For the past two years, we have developed a relatively straightforward approach to improve the quality of the experience in serviced areas and to build internet connectivity in areas lacking services. Our internet data reveals that WorldLink’s service has significantly improved in this context. We follow up on complaints that have been resolved, and our business ensures that issues are settled within two hours. We are making work toward a quick solution and aim to lower the time from two hours to half an hour. We keep track of each complaint for better further services. Due to its large range and two modes of connection, the WorldLink network in Kathmandu does not frequently go down. Our main focus is on providing high-quality service to the customers. Your company has recently tied up with the video game PUBG to provide a better gaming experience in Nepal. How does this partnership work? Nepal is a very popular region for PUBG. The owner of PUBG wanted to ensure a high-quality gaming experience in Nepal, and they were looking for a reliable partner. We’re happy to be recognized as their Nepali partner. For now, we are developing packages and working to reduce latency. This is not only for the WorldLink customers but for everyone who plays PUBG. The establishment of a PUBG server in Nepal may be possible in the future, along with any other positive developments. Additionally, creating a Nepali workforce for the gaming business is what we've suggested to them. For instance, premium customers need real-time support which Nepalis can provide as they are interested in this game. They can expand job opportunities in the gaming industry. I’ve seen call centers and agents in Nepal playing various popular games. I believe that this could be a good chance for aspiring gamers in Nepal. These things are not discussed thoroughly with them, but we are just sharing the possibilities.  

Fifteen years is a long time, even in an ancient country and a young republic. Without beating about the bush, let’s get the facts straight. Fifteen years ago, Nepal underwent a political transformation of Himalayan magnitude. It consigned a unitary system of governance and the monarchy that formed a part of it to history. The erstwhile Hindu state of sorts embraced secularism despite reservations from a large section of the Nepali populace. After the monumental change in polity, it was but natural for the people to expect things to get better. But that hardly happened. New political parties came to power and soon got corrupt. Governments came and went, leaving behind a legacy of corruption scandals, misrule, cronyism and chronic instability. The new order was supposed to build institutions to run the republican system efficiently and effectively. It ended up institutionalizing corruption instead, with major corruption scams like PLA cantonment, Yeti, Omni, Wide-body and Bhutanese refugee scandals. Without giving a hoot about the principles of separation of powers and checks and balances, the executive rode roughshod over the judiciary and imposed its will on the legislature, instead of letting it act as the truly sovereign body reflecting the people’s will. Federalism was supposed to bring the state to the very doorsteps of the people. Instead, what people have gotten are the Singhadurbars of their own—at provincial and local levels—that are quite hard to keep. Paradoxically, these monoliths resemble the state of affairs in the princely states of the yore. Like those palaces, the republican durbars also impose heavy taxes on their ‘subjects’ and they too are neck-deep in corruption and instability-plagued, with frequent changes in provincial governments becoming a new normal. Indeed, the more things change, the more they remain the same. Or do they get worse, actually? Not a day passes by without the country bidding farewell to an increasing number of youths heading abroad for jobs, education or permanent settlement. Hardly a day passes by without youths driven away by endemic corruption, instability, breakdown of law and order and a deepening economic crisis returning home dead. The transformation that was supposed to bring cheers to the people has ended up pouring cold water on popular aspirations. This has emboldened forces that were against the transformation all along. Things cannot get any worse than this, can they? Even in a gloomy scenario like this, there’s a glimmer of hope. The police probe into the refugee scam has given the government a unique opportunity to dig into infamous corruption scandals of yesteryears, those related to policy corruption in particular, and bring the guilty to justice. It can go a long way in cleansing the governance system through and through. Singhadurbar should exhibit the political will to do this, if it is indeed serious about protecting and institutionalizing the gains of the political changes that have taken place since the end of the Rana regime in 1950.

President Ram Chandra Paudel today observed the Bhoto Jatra festival, a ritualistic festival dedicated to the Rato Machhindranath, the deity of rain and bountiful harvest. The President attended the Bhoto Jatra festival at Jawalakhel this afternoon and observed the ritual of displaying the Bhoto (the jewel-studded mythical vest believed to belong to the deity). As part of this ritual, an employee of the Guthi Sansthan Lalitpur displayed the Bhoto from the pinnacle of a chariot of the Rato Machhindranath deity. It is a tradition to display the Bhoto on the fourth day the chariot of the deity is towed in a procession up to Jawalakhel from Lagankhel. On the occasion, the Head-of-the-State paid homage to the Rato Machhindranath deity and also took the prasad. He also paid obeisance to the living goddess Kumari on the occasion. The chariot festival which started from April 24 concluded today with the displaying of the Bhoto. Vice President Ram Sahay Prasad Yadav, Prime Minister Pushpa Kamal Dahal, Speaker Devraj Ghimire, Deputy Prime Minister and Home Minister Narayan Kaji Shrestha and the government ministers were also present on the occasion. A large number of people had also gathered at Jawalakhel to observe the festival.  

While the prospect of electricity exports has lured many people to invest in hydropower projects and shares of power companies in recent years, the third-quarter financial reports of hydropower companies show power producers are facing the heat of higher interest rates and a decline in power generation. Of the five dozen hydropower companies that have published their financial reports, two dozen have reported losses in the third quarter of the current fiscal year 2022/23. As of Wednesday, 64 hydropower companies have published their financial statements. Of them, 25 have reported losses, 28 reported decline in profits, and only 11 reported growth in profits in the review period. The financial statements show 38 hydropower companies have reported earning profit in the current fiscal year. Among the companies, Chilime Hydropower Company stood at the top with a profit of Rs 528.9m. Chilime Hydropower, a subsidiary of Nepal Electricity Authority saw its profit increase by only 1.33 percent in this fiscal. While the Sanima Mai Hydropower Company recorded a profit of Rs 358.2m, its profit has decreased by 20.4 percent. Universal Power Company Limited recorded the highest growth in profit with a growth of 409.47 percent. The company posted a profit of Rs 68.06m in the third quarter of the current fiscal year, up from Rs 13.35m in the last fiscal year. In the review period, the state-owned Upper Tamakoshi Hydropower Company incurred the biggest loss. The company which is operating the 456 MW Upper Tamakoshi Hydroelectric Project has recorded a loss of Rs 2.33bn compared to a loss of Rs 1.65bn in the corresponding period of the last fiscal year. The private sector-run Shiv Shree Hydropower is the second largest loss-making hydropower company with a loss of Rs 237.93m. The company's loss in this fiscal is lower than that of the last fiscal. Balefi Hydropower Company is third on the list with a loss of Rs 237.2m compared to Rs 0.6m in the third quarter of the last fiscal year. Independent power developers said that hydropower companies are either in losses or their profit has declined mainly due to two reasons—banks’ higher interest rates and a decline in their income due to low power generation. According to them, the surge in the borrowing rates has hit the companies hard. As the majority of power producers had to pay higher interest rates for the loans in the current fiscal year, their profitability has been affected. “Hydropower companies that were paying 8-10 percent interest earlier, were forced to pay up to 14-15 percent interest,” said Krishna Prasad Acharya, president of the Independent Power Producers' Association Nepal (IPPAN). In addition to this, the electricity generation of major hydroelectric projects has also decreased more this winter compared to the last winter due to the prolonged dry season and a decrease in water levels in the rivers. The majority of hydropower plants in Nepal are run-of-the-river type hydropower projects that usually produce less than 40 percent of their installed capacity as water levels in the rivers decrease significantly during the dry season. “The profits have been affected due to the decline in power generation,” said Acharya. Companies whose profit has increased

Nepali Ambassador to India Shankar Prasad Sharma held a meeting with External Affairs Minister of India S Jaishankar on Thursday. During the meeting, the duo discussed Prime Minister Pushpa Kamal Dahal’s upcoming visit to India, it has been learnt. Though the formal announcement of the visit is yet to be made, a source said that Prime Minister Dhal will leave for India on a three-day visit on May 31. A source at the Nepali Embassy in New Delhi said that Ambassador Sharma and Minister Jaishankar held a discussion to make Prime Minister Dahal’s India visit fruitful. Ambassador Sharma informed through Twitter that he held a meeting with External Affairs Minister of India Jaishankar. He said that they discussed making the ties between Nepal and India even stronger on the occasion.    

Signing a long-term intergovernmental agreement on energy trade, starting the development of a number of transmission line projects, and inking a joint venture agreement to develop hydropower projects in Nepal will be top agenda of the energy sector for Prime Minister Pushpa Kamal Dahal’s upcoming visit to India. While the formal announcement of the visit is yet to be made, government officials said the prime minister will leave for India on May 31 for a three-day visit. Government officials involved in the preparation of the visit said that energy sector cooperation between the two countries will dominate the list of agendas of the visit. With Nepal on a path to producing surplus energy soon, the government is seeking greater cooperation with India in the energy sector as the southern neighbor is prioritizing moving to clean energy sources from a feasible fuel-dominated energy market. “We have sent a proposal to sign a 25-year intergovernmental agreement on power sale of Nepal to India,” said a senior official at the Ministry of Energy, Water Resources and Irrigation. “No conclusion has been reached as talks are undergoing. Such an agreement is essential to ensure long-term access to the Indian market for Nepal’s power.” Nepal had proposed such a deal during the 10th secretary-level meeting of the Joint Steering Committee on Energy Cooperation in India in late February this year. India had asked Nepal for a formal proposal Currently, Nepal is required to renew the approval from the Indian authority every year which has created uncertainty about whether the southern neighbor would allow the export of electricity from certain projects. As per the Power Trade Agreement signed in 2014, the inter-government agreement removes the requirement of taking approval frequently. An agreement could be signed between Nepal Electricity Authority (NEA) and India's Madhyanchal Vidyut Vitaran Nigam Ltd (MVVNL) for the sale of Nepal’s 200 to 500 MW under a five- or seven-year agreement, according to an NEA official. “We have got a proposal from the MVVNL,” said an NEA official. The official said that there is also a plan to sign a memorandum of understanding between Nepali and Indian company NHPC Limited to develop the 480 MW Phukot Karnali Hydropower Project. Vidyut Utpadan Company Limited (VUCL) and NHPC Limited, the two state-owned companies of Nepal and India respectively, have decided to develop this project in Kalikot district. VUCL has already sent a draft of the MoU for project development to the Cabinet for approval. NHPC has been awarded the 750 MW West Seti Hydropower Project along with the 450MW Seti River-6 Project. In April, the Investment Board Nepal had asked the Indian company to prepare a detailed project report on these two projects. Likewise, the southern neighbor is also likely to approve Nepal’s proposal to allow the export of 40 MW of electricity to Bangladesh through the existing Indian transmission infrastructure. The NEA has sent a request to the Indian authorities to allow the sale of the power generated by the 52.4 MW Likhu-4 Project to Bangladesh through India’s existing transmission infrastructure. Officials said before the export takes place, a trilateral agreement needs to be signed between the NEA, the Bangladesh Power Development Board, and the NTPC Vidyut Vyapar Nigam Limited. “A draft of the agreement has been prepared and discussions are undergoing. Once a tripartite agreement is signed, it will pave the way for exports of Nepal’s power to Bangladesh.” According to officials, there is a plan to lay a foundation stone to construct the Butwal-Gorakhpur cross-border transmission line. The two prime ministers are expected to lay the foundation stone indicating the start of the construction of the project. A joint venture company established by the NEA and the Power Grid Corporation of India will be undertaking the transmission project on the Indian side. “The contract for the construction of the transmission line has already been awarded while the company has invited tender for the construction of the substation,” said the NEA official. Likewise, there is also the plan to inaugurate the New Modi-Lekhnath Transmission Line as the construction of the project was done with the aid of the Export-Import Bank of India. There is also a plan to inaugurate a second circuit of the Kataiya-Kusaha cross-border transmission line whose construction has been completed, according to the NEA official.