Rahul Barua: India’s prosperity should benefit Nepal, and vice versa
Rahul Barua is the Secretary General of the South Asia Foundation. He holds a B.Tech in Chemical Engineering from the Institute of Technology, Banaras Hindu University (now IIT-BHU), and currently serves as a Visiting Faculty at Malaviya Peace Research Centre, Banaras Hindu University. In 1997, he established the first-ever crafts development center in Sikkim, introducing microcredit and self-help groups in the region.
He also developed a potter’s village on the outskirts of New Delhi, named Kumhargram. Additionally, he founded the South Asia Centre for Peace Research and Sustainable Development in collaboration with Lumbini Buddhist University. Baruwa has played a significant role in peace-building efforts in Nepal, facilitating meetings between Nepali and Indian political parties. He worked alongside prominent figures such as Sitaram Yechury and Dr DP Tripathi as well as Nepali leaders like Pradeep Giri, Girija Prasad Koirala, Krishna Prasad Mahara, Pushpa Kamal Dahal and Madhav Kumar Nepal, among others. ApEx talked to him on wide-range of issues related to Nepal-India relations. Excerpts:
What is the South Asia Foundation? Please tell us about its activities.
The South Asia Foundation is a Nepal-registered organization. In collaboration with the Lumbini Buddhist University, we established the South Asia Centre for Peace Research and Sustainable Development. A few years ago, around 5,000 people visited the Maya Devi Temple — a sacred site for followers of Buddha’s teachings — daily. Today, the number has risen to 7,000, with an additional 15,000 visiting Lumbini. Gautam Buddha is not just a figure for Nepal or India, he is a South Asian face for global peace and humanity. His teachings — tolerance, peaceful co-existence, compassion and moving away from materialism — are more relevant than ever in today’s conflict-ridden world.
This center was conceptualized years ago, and it is very encouraging that Lumbini Buddhist University has provided it with land and necessary infrastructure. The center not only disseminates knowledge about Buddha but also offers academic diploma courses designed in collaboration with the university. Many top universities of India and South Asian, along with experts, academicians and retired government officials are eager to engage with the center to share their knowledge and expertise with students.
We aim to facilitate Memorandum of Understanding (MoUs) with Lumbini Buddhist University and other universities all over the world. We are in negotiations with the best universities of the South Asian countries. Best minds have come forward and we are collaborating in multiple forms. Several MoUs have already been signed.
What are the other areas that the Foundation and the Center are working on?
We are working on several bilateral issues such as water sharing and border management among others. In 2017, former Indian Ambassador to Nepal, Manjeev Singh Puri, highlighted how Nepali living in India are contributing significantly to the Indian economy. Gone are the days when Nepalis were limited to roles like security guards or menial jobs. Today, they are entrepreneurs running restaurants, manpower agencies and online service providers.
One area of focus is Nepal’s potential to supply dairy products, especially ghee, to South Asia. Milk production is falling in Bangladesh, Bhutan, Sri Lanka, as well as in the Nepal-India border regions. Nepal can fill this gap by supplying dairy products not only to India but also to other South Asian countries. There should be duty-free agreement on these items between Nepal and India. The Foundation operates without foreign funding, relying entirely on internal resources. We are training Nepali women to become entrepreneurs and have partnered with India’s dairy giant Amul to make the dairy sector organized. There are many areas where we can work together.
Can you please tell us about the light and sound program being launched in Lumbini?
We have signed a MoU for this project and are raising funds locally. Several banks have agreed to support us, though they have their own terms and conditions as per the law and banking regulations. This light and sound program is the first of this kind in Nepal and one of the few in the world dedicated to narrating the story of Lord Buddha. Our goal is to spread the message of peace, compassion and Buddha’s teachings which are relevant even today. We are doing a lot of work on DPR and research from our own funds. We are receiving technical assistance from a British company. The idea for this light and sound program was proposed to me by Sujeet Shakya of Kathmandu Guest House.
Last week, you organized an important seminar in New Delhi. What were the key outcomes?
The seminar was organized to facilitate knowledge-sharing between Lumbini Buddhist University and other universities in India. Renowned professors, academics and historians participated in the seminar and shared their insights. They also pledged to support our initiatives.
Five universities and two institutions have agreed to collaborate with the Lumbini Buddhist University and the Center on joint research, student and faculty exchange programs, seminars, conferences and academic partnerships. We also held sideline meetings with Nepali political leaders and other stakeholders.
Many more universities have expressed interest in supporting Lumbini Buddhist University. During the seminar, Nepali delegates also engaged with Indian leaders and diplomats, discussing Nepal’s ongoing development and its emergence as a dynamic nation. Over the past two decades, not only has India undergone rapid changes, but Nepal has also transformed significantly. These changes need to be acknowledged, understood and embraced.
How do you assess the current state of Nepal-India relations?
Nepal and India are both sovereign countries and must mutually respect each other. Both sides share the responsibility to strengthen this relationship. The two countries are equals, each holding their own vote in the United Nations and other multilateral organizations. There is no thing as a ‘big’ or ‘small’ country. Mutual respect is essential to foster a healthy relationship. India’s prosperity should benefit Nepal as well, and vice versa.
What are your suggestions for future prospects?
There has been significant progress in energy cooperation, which is a positive step. However, we should expand student exchange programs on a large-scale, moving beyond limited scholarship schemes. Other potential areas of collaboration include agriculture and dairy productions. India should encourage joint projects in Nepal to further deepen bilateral ties.
How do you view the growing Chinese influence in Kathmandu?
I do not consider Chinese influence as a dominant factor in Nepal-India relations. China has its own aspirations of becoming a geopolitical leader, but what often gets overlooked is the unique and special relationship between Nepal and India rooted in shared social, historical and cultural ties and linguistic similarities.
Two dead, seven injured in Parbat jeep accident
Two persons died and seven others were injured when a jeep met with an accident at Bihadi Rural Municipality in Palpa on Wednesday.
The jeep with registration number Lu 1 Ja 4460 was heading towards Waling in Syangja from Purtighar of Kaligandaki Rural Municipality when the accident occurred, according to the District Police Office, Parbat.
The deceased have been identified as Min Prasad Upadhyay (61) of Ranipani of Bihadi-3 and Dil Kumari Bhattachan (64) of Kaligandaki Rural Municipality-4 in Gulmi district, informed DSP Rabin Bista. They died on the spot.
The identities of injured ones are yet to be ascertained, said DSP Bista.
According to him, of those sustaining injuries in the incident, six were sent to Palpa district for further treatment while a baby boy, who sustained minor injuries, is receiving treatment at the local health post.
The incident took place at Lidi of Bihadi Rural Municipality due to brake failure.
Further investigation into the incident is underway, Bista said.
NEA prioritizes pumped storage project for energy security
The Nepal Electricity Authority (NEA) has prioritized the construction of pumped storage hydropower projects to manage daily electricity demand fluctuations and enhance the country’s energy security. The NEA’s Project Development Department has identified 156 potential pumped storage projects nationwide.
Of these, 33 projects with a combined capacity of 42,000 MW have been shortlisted and categorized. A feasibility study is underway for a 332 MW pumped storage project in Syarphu Lake, Rukum (West), after obtaining a survey permit. Additionally, the 670 MW Dudhkoshi Reservoir Hydropower Project is studying a 200 MW pumped storage component.
A feasibility study is also being conducted for the 1,596 MW Hulingtar-Dukim Pumped Storage Project in Dhading’s Benighat Rorang and Chitwan’s Ichhakamana rural municipalities. Located near Kathmandu, this project benefits from access to roads, transmission lines, and other necessary infrastructure. The NEA’s Project Development Department is currently conducting a Detailed Engineering Study (DEX) for the project.
The project involves constructing two reservoirs by building 45-meter and 103-meter-high dams on the Hugdi (upper) and Mowa (lower) rivers, respectively. The power plant will be situated on the Mowa River. Electricity will be generated using water stored in the Hugdi reservoir, and after generation, the water will be pumped back from the Mowa reservoir to Hugdi. The project is designed to operate at full capacity for six hours during peak demand periods.
Pumped storage projects store water in an upstream reservoir during off-peak hours when energy prices are low. This stored water is later used to generate electricity during peak hours when demand and prices are higher. These projects play a crucial role in power system stability, peak demand management, and surplus energy utilization. They also enable Nepal to generate and consume electricity efficiently while exporting surplus energy to India at premium rates during peak periods.
On Saturday, NEA Executive Director Kulman Ghising, Project Development Director Nasibman Pradhan, and other officials inspected the Hulingtar-Dukim project site. Ghising highlighted the project’s advantages over others due to its strategic location, favorable environmental and social conditions, accessibility, infrastructure availability, and proximity to transmission lines and power demand centers.
Ghising stated that the project would initially be developed with a capacity of 510 MW in the first phase, eventually expanding to full capacity. “The process of obtaining a survey permit will be prioritized to accelerate construction,” he said. The project is expected to generate approximately 3.36bn units of electricity annually, with an estimated cost of $587,000 per megawatt.
Gold price increases by Rs 900 per tola on Wednesday
The price of gold has increased by Rs 900 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 170, 400 per tola today. It was traded at Rs 169, 500 per tola on Tuesday.
Similarly, the price of silver has increased by Rs 10 and is being traded at Rs 1, 950 per tola today.
New budget to prioritize fiscal discipline
With revenue affected by a slowdown in economic activities which has put pressure on resources, the government has hinted that the upcoming fiscal year’s budget will adopt austerity measures. Issuing guidelines for budget formulation for fiscal year 2025-26, which begins from mid-July, the Ministry of Finance has urged ministries to propose only essential budgets, maintaining fiscal discipline in current expenditures.
The National Planning Commission (NPC) has given a budget ceiling of Rs 1,900bn for 2025-26. The finance ministry has requested ministries to reduce current expenditures in line with the criteria for making public spending frugal and effective. Budget proposals for software purchases and consultancy services should only be made if they contribute to the development of an integrated system with adequate justification and cost-effectiveness, the guidelines read.
Ministries have also been cautioned to avoid duplication of budget programs. The finance ministry has urged other ministries to not propose any budget for abandoned projects. It has said that expenditure proposals for furniture, fixtures and decorations should be made only in essential cases.
Due to resource constraints, the finance ministry has advised that additional funds should not be sought mid-fiscal year except under special circumstances. Ministries have also been instructed to make budget allocations for service contracts for vacant positions within the approved pay scale only. “Positions occupied by employees working in other offices or outside the pay scale should not be considered vacant, and no budget should be requested for such cases,” it added.
Ministries have also been advised against requesting budgets for purchasing machinery, equipment or furniture. Budgets for vehicle purchases and foreign travel should only be proposed in essential cases, the guideline states. All ministries must submit their budget proposals for the upcoming fiscal year by March 28.
The finance ministry has requested ministries to prepare budget proposals in such a way that it minimizes the need for fund transfers and program revisions. They have also been told to propose programs based on the project classification criteria introduced last year. Ministries have been told to not include projects and programs that can create long-term liability. Likewise, ministries must propose only quality projects and programs with completed preparations and cost-benefit analysis indicating feasibility. They have been instructed to make sufficient allocations for ongoing projects expected to be completed in the next fiscal year before proposing new programs and projects.
To ensure efficient use of limited resources, the finance ministry has told ministries not to spread resources across small projects. Ministries are required to reduce the number of sequential projects and suspend non-implementable and low-priority projects. When proposing projects, ministries have to include only those projects listed in the National Planning Commission's project bank. For new projects where studies are incomplete, budget allocations should only be requested for study and preparatory works, not for implementation.
The finance ministry has said that new projects and programs should be proposed only after ensuring availability of resources. The ministries have also been told to maximize the use of available resources to fulfill periodic plans, sectoral strategies, international commitments and national development goals. “Budget proposals should comply with guidance and suggestions received from the Prime Minister’s Office, constitutional bodies and regulatory bodies, among others”.
Conditional grants and new projects
According to the guidelines, conditional grants under intergovernmental financial transfers should be reprioritized to ensure continuity of quality projects. “Sufficient funds should be allocated for salaries and other mandatory obligations of working personnel under conditional grants. For supplementary and special grant projects, budget proposals should cover liabilities created, and new projects should only be proposed for remaining amounts,” it added. “New projects should not be proposed if they contradict the criteria set by the supplementary and special grant procedures.”
Ministries and subnational governments have also been told to avoid duplication of projects and maintain institutional coordination to reduce risks by considering disaster sensitivity. Ministries have also been told to prioritize post-disaster reconstruction in their budget requests. “Projects with resource approval from the finance ministry must allocate sufficient funds to cover liabilities in the next fiscal year before proposing other projects and programs. Projects with assured resources should be reprioritized to ensure resource management,” the guidelines added. It states that budget proposals must include mandatory allocations for liabilities created by legally-incurred expenditures.
Chartered plane carrying Nepalis deported from the US lands in Kathmandu
A chartered plane carrying Nepalis deported from America landed in Kathmandu on Wednesday.
According to Tribhuvan International Airport (TIA) Spokesperson, Rinji Sherpa, the chartered aircraft with 14 people onboard including the crew members landed at TIA at 10:15 am.
The aircraft from the Portsmouth International Airport in New Hampshire State of the US made a technical stop in the middle before landing directly in Kathmandu, it is said.
The aircraft will return to the US via Albania at 3 pm tomorrow.
With US President Donald Trump assuming his office for the second term, the US has continued the deportations of the immigrants found without official documents back to home.
Meanwhile, they have been handed to the Nepal Police for further investigation.
According to the TIA- based Office of the Immigration, they were handed to the police following the completion of immigration procedures.
Immigration Officer Yagya Raj Aryal also confirmed that one more Nepali was deported from the US via the regular flight of Qatar Airways today itself.
Prior to this, the US had deported 27 Nepalis.
Additional Rs 3.84 billion released for health-related programs
The Ministry of Finance has released an additional Rs 3.84 billion for health-related programs, including payment of health insurance.
Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel took the decision to this effect based on the demand of the Ministry of Health and Population, the Finance Minister's Secretariat said.
According to the Finance Ministry, of the amount released, Rs 3 billion has been allocated to the Health Insurance Board, Rs 600 million for the treatment of senior citizens and Rs 240 million to the Sahid Gangalal National Heart Centre for free treatment of heart patients.
OCR launches Company Administration Management Information System
The Office of the Company Registrar has fully implemented the Company Administration Management Information System.
In a press statement issued on Monday, the Ministry of Industry, Commerce and Supplies announced the launch of the system.
This new digital system is expected to make the process of handling company-related tasks more convenient, offering services ranging from company registration to annulment without the need for service seekers to be physically present at the office.
The Ministry has encouraged all stakeholders to utilize the service and provide feedback on any issues encountered in using the system.