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Indian officials have raised concern over the Supreme Court's decision to issue an interim order staying the government’s decision to extend the deadline for GMR Energy to complete the financial closure of the 900-megawatt Upper Karnali Hydropower Project. The interim order has thrown the project’s future into uncertainty as GMR won’t be able to work towards financial closure now. Financial closure means ensuring enough resources to implement the project. GMR in mid-November last year had filed a petition to vacate the stay order, arguing that the court’s decision would further delay the project works. In response Supreme Court justice duo Kumar Regmi and Til Prasad Shrestha on Jan 3 forwarded the dispute of the Upper Karnali Hydropower Project to the constitutional bench, citing concerns about constitutional interpretation. With the license of the major hydropower project funded by a leading Indian company hanging in the balance, the Indian officials are concerned about the situation. During his recent Nepal visit, Indian Foreign Secretary Vinay Mohan Kwatra had also raised the issue with the Nepali officials. “When he met with Deputy Prime Minister and Minister for Energy, Water Resources and Irrigation Minister Rajendra Lingden on February 14, he had asked about what was happening with the Upper Karnali project,” said a senior official at the Energy Ministry. “We notified the Indian foreign secretary that the Nepal government has owned up the issue and already demanded the court to vacate its interim order.” The official said that they also notified the Indian foreign secretary that the government has responded to the court, saying that as the Indian company was preparing to sign a power purchase agreement with Bangladesh, the deadline extension for financial closure was necessary. Indian government officials also raised the issue during the 10th joint secretary-level Joint Working Group and the secretary-level Joint Steering Committee held in Jaipur, India on February 17-18. They were concerned about the investment climate for India-invested projects in Nepal, according to one Nepali delegation member. “While they didn’t specifically focus on the Upper Karnali project, it was clear to understand that they were  hinting at the problem faced by GMR Energy,” said the delegation member. Citing a number of reasons, a single bench of Justice Ishwar Prasad Khatiwada had issued the interim order not to implement the decision until the final verdict on the matter. The Supreme Court’s interim order came at a time when the Indian company was preparing to sign a trilateral power sales agreement with the Bangladesh Power Development Board and NTPC Vidyut Vyapar Nigam Limited (NVVN). Bangladesh signed a memorandum of understanding with India’s NVVN to import electricity from the Upper Karnali project via India during Bangladeshi Prime Minister Sheikh Hasina’s visit to New Delhi in April 2017. Bangladesh has already issued a letter of intent to GMR Group expressing its interest to enter into a contract to purchase 500 MW of electricity from Upper Karnali. The power purchase agreement rate was also agreed upon between GMR Energy and the Bangladeshi authority at 7.712 cents per unit for a period of 25 years. However, the court issued an interim order based on the lack of the continuation of deadline extension since its deadline was last extended on November 10, 2017, for one year. “After the expiry of the deadline, no decision was taken to continue the agreement,” the court observed. “In the context where the last deadline expired three years ago and there has been no other extension, there is no logical justification to extend the deadline by two years from July 15 this year.” Officials at the Investment Board Nepal admit that indecision on the part of the board on extending the deadline as demanded by the Indian company was the main reason why the issue reached the Supreme Court. “The Indian company failed to accomplish the financial closure in time,” a lawyer with knowledge of the matter said. “The Investment Board also failed to take timely decisions on the extension which has now cast doubt on the future of the project.”

The Democratic Socialist Party (DSP) has urged the Nepali Congress to support its Chairman Mahantha Thakur as the country's new President. A team including Chairman Thakur met Nepali Congress President Sher Bahadur Deuba on Wednesday and urged him to make Thakur the President on the basis of national consensus. Earlier on Tuesday, the DSP had decided to lobby all the political parties to make Thakur the President. The team of Thakur held separate meetings with Prime Minister Pushpa Kamal Dahal and CPN-UML Chairman KP Sharma Oli on Tuesday afternoon. As the time to file candidacy for the presidential election is approaching nearer, senior leaders of the major political parties have intensified meetings and behind-the-curtain negotiations. The DSP had participated in the alliance of the Nepali Congress in the elections to the House of Representatives and Province Assembly. Rajendra Mahato, Anil Jha, Sarbendra Shukla and Sharad Singh Bhandari were present in the meeting.      

Chinese Ambassador to Nepal Chen Song paid a courtesy call on Prime Minister Pushpa Kamal Dahal on Wednesday. During the meeting held in Baluwatar, the duo discussed the presidential election. With the date of the presidential election approaching nearer, the meeting between Prime Minister Dahal and Chinese Ambassador Chen is seen as meaningful. Prior to this meeting, the Chinese Ambassador had also met CPN-UML Chairman KP Sharma Oli and Nepali Congress President Sher Bahadur Deuba. According to a Baluwatar source, Chinese Ambassador Chen had discussed implementation of the BRI project, Nepal’s infrastructure development, Nepal-China relations and mutual interest with Prime Minister Dahal on February 16. On the occasion, Prime Minister Dahal said that the agreements signed earlier with China will be implemented effectively. Ambassador Song said that China will always be with Nepal on the path of stability, development and prosperity. China, India, America and the European Union have been showing interest in the presidential election.

An excellent batting from skipper Rohit Paudel helped Nepal register a two-wicket victory over Scotland in the final match of the tri-nation ODI series under the ICC Men’s Cricket World Cup League 2 on Tuesday. In the match played at the TU cricket ground today, Scotland set a target of 213 runs for Nepal. Paudel, who came in number four, played an important innings scoring unbeaten 95 runs of 101 balls hitting seven fours and four sixes. Nepal reached the target losing eight wickets in 44.1 overs. Paudel and Karan KC shared a historic partnership of 75 runs for the ninth wicket to steer Nepal to victory. This is the highest partnership in the history of Nepal for the ninth wicket. Earlier, this record was held by Sompal Kami and Sandeep Lamichhane. They had shared a partnership of 41 runs against New Zealand in 2018. Similarly, KC scored 31 runs off 37 balls hitting two fours and one six. Nepal’s opener Asif Sheikh contributed 12 runs and Gyanendra Malla returned to the pavilion scoring 21 runs. Likewise, Kushal Malla made 17 runs while other players failed to score in double digits. Mark Watt claimed the highest three wickets for Scotland. Chris Greaves took two wickets while McMullen, Safyaan Sharif and Michael Leaask took one wicket each. Scotland’s Matthew Cross scored 42 runs off 62 balls hitting one six, Brandon McMullen contributed 31 runs while opener Kyle Coetzer and Christopher McBride made 22 runs each. Sandeep Lamichhane took four wickets for Nepal. Similarly, Karan KC claimed three wickets and Lalit Rajbansi and Kushal Malla took one wicket each. Earlier on Friday, Nepal thrashed Scotland in the first match by achieving the target of 275 runs. Nepal, who had defeated Namibia in both the matches, won all the four games of this series. Nepal is under pressure to win all the remaining eight matches to reach the global qualification of the World Cup. After this series, Nepal will play against UAE and another series against Papua New Guinea (PNG). Later, Nepal will play against UAE and PNG at the TU cricket stadium. Nepal have to win five out of the remaining eight matches to save the ODI status.

An Armed Police Force Constable has been sentenced to life in prison for murdering an Assistant Sub-Inspector. A single bench of District Judge Nabin Kumar Joshi sentenced APF Police Constable Home Bahadur Khatri (39) to life imprisonment on Monday. He had murdered ASI Satya Narayan Yadav (45) working at the Border Outpost (BOP) of the Armed Police Force in Mohanpur, Chinnamasta Rural Municipality-3. A single bench of District Judge Shyam Bihari Morya on November 8 passed the order to send him to jail. The Court on Monday sentenced the convict to life in prison and slapped a fine of Rs 300,000. The Court also issued the verdict to deposit Rs 200, 000 in the Relief Fund. ASI Yadav of Naraha, Bhagwanpur Rural Municipality-2, Siraha District and Khatri of Khijidemba Rural Municipality-2, Okhaldhunga were stationed at the Border Outpost in Mohanpur, Chinnamasta Rural Municipality-3. During the interrogation, Khatri admitted that he killed Yadav on October 5. Khatri said that he attacked Yadav with a stick on his head under the influence of alcohol. The body was Yadav was found in a river at Jiroga Punarbas in Madhubani district, India. The deceased family members said that others are also involved in the murder. Khatri was nabbed on October 12, a week after the body was recovered.    

The price of gold has dropped by Rs 200 per tola in the domestic market on Tuesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow bullion is being traded at Rs 103, 000 per tola today. The yellow metal was traded at Rs 103, 200 per tola on Monday. Meanwhile, tejabi gold is being traded at Rs 102, 500 per tola. It was traded at Rs 102, 700. Similarly, the silver is being traded at Rs 1,290 per tola today.

There has been a sharp decline in foreign direct investment (FDI) inflow in Nepal in the current fiscal year. The net FDI inflow to the country has plunged by 93.4 percent in the first half of FY 2022/23. Nepal saw a net FDI inflow of Rs 749.4 million in the first half of this fiscal compared to Rs 11.34 billion during the corresponding period of the last fiscal. Nepal is one of the countries that receive the lowest FDI in the world. Despite many talks on attracting FDI in the country, the country has failed to attract foreign investors as expected. While net FDI is on the decline, repatriation is on the rise, as per NRB statistics. Foreign investors have repatriated Rs 1.80 billion in the first half of this fiscal. Such repatriation during the first half of the last fiscal stood at Rs 268 million. Not only net FDI, but FDI pledges in the country also dropped significantly during the first half of the current fiscal year. As per the latest statistics of the Department of Industry (DoI), FDI commitments dropped by 43.27 percent in the first six months of FY 2022/23. FDI commitments totaled Rs 17.30 billion in the review period compared to Rs 30.50 billion in the corresponding period of FY 2021/22. Economists attribute the decline in net FDI inflow to global economic recession.  According to them, the global economy that was coming out from the impact of the Covid-19 pandemic has been hit hard by the Russia-Ukraine conflict and the rise in prices of commodities. Economist Chandra Mani Adhikari said that foreign investment in Nepal has decreased due to the global economic recession. "The world economy has been impacted by the Russia-Ukraine conflict as it pushed the prices of commodities, especially oil, coal, and gas, and disrupted the supply chain," said Adhikari. Economists say it is necessary to improve the existing policy and structural system to bring more foreign investment into Nepal. According to them, while the immediate reason for the decline in FDI might be the global recession, there are structural and procedural obstacles in Nepal that discourage investors. The private sector says there is no coordination on policy and institutional matters regarding foreign investment. There is a trend of announcing various facilities to attract investors but not implementing them, they said. Despite introducing a one-door system in the Investment Board Nepal and Industry Department, FDI has not come in as expected. Of late, the government has eased procedures related to FDI. In November last year, it lowered the minimum threshold for FDI to Rs 20 million from Rs 50 million to attract even small foreign investors in the country. “The threshold was reduced as per suggestions from stakeholders,” said Tiwari. “The decision is expected to encourage FDI in the information and communication sector, which does not need big investments in physical infrastructure.” And, in January this year, Nepal Rastra Bank allowed a company with foreign investment operating in Nepal to borrow up to 100 percent of the paid-up capital from its parent company. Earlier, it was restricted to 60 percent of the paid-up capital. Such companies can also pay an interest rate as high as a one-year benchmark interest rate plus 3.5 percent per annum, up from a one-year benchmark interest rate plus a three percent additional rate per annum earlier. The NRB has also allowed foreign investors to record their FDI details at the central bank by mid-January 2024. Likewise, companies bringing foreign loans can also record such borrowings by mid-January 2024. Nepal’s Foreign Investment and Technology Transfer Act has permitted bringing both FDI and foreign loans. Net FDI in Nepal (First six months)

Subrata Banerjee is the General Manager of Radisson Hotel Kathmandu, one of the leading five-star properties in Nepal. He has been associated with the Radisson Hotel Group for more than 10 years and has been running Radisson Kathmandu as General Manager since 2017. As a seasoned hotelier, Banerjee spoke to ApEx about the current state of the domestic hospitality industry and its future outlook. Excerpts: What was the impact of the Pokhara air crash on Nepal's tourism sector? We did receive cancellations, and I'm sure many also postponed their visits out of fear. However, I would like the media to encourage more tourism instead. Let's not stab ourselves in the back by talking about the crash too much. It's not as bad as the media is portraying it to be. For instance, certain other International Airlines had accidents before, but people are still traveling in those airlines. Once you're in the air, there is always a certain level of risk, but as long as you're confident that the aircraft is well maintained and the pilots are properly trained, it should not bother you much. What is the current situation of the Nepali hospitality sector? The Nepal Tourism Board has shown some aggression in promoting tourism, but we need to do much more to showcase ourselves globally. To help the hospitality sector, we must focus on 360-degree improvements in road and infrastructure development. We should promote Nepal not only in India, but also in other countries by using visual aids to highlight the country's natural beauty as a tourist destination. However, once tourists start visiting, it's important that our infrastructure can properly support them. For example, Nagarkot is a beautiful place, but a poorly maintained road leading to it could create a negative impression. The same goes for Pokhara; although I enjoy driving, the road leading up to Mugling is quite bad. Human resources availability has emerged as a huge issue for the hospitality industry post- pandemic. How are you managing human resources and overall business after covid? It's a serious problem, as there is a significant shortage of skilled manpower, particularly in the hospitality sector, since many have moved to other countries. We're currently recruiting individuals with comparatively less skill and providing them with training to fill those positions. As for businesses, they're slowly returning to normalcy, but it will likely take until the end of third quarter of this fiscal year for it to reach pre-pandemic levels. How is Radisson expanding its presence in Nepal? Radisson has signed a few more properties in Biratnagar and Bhairahawa, with more properties on the verge of getting signed. Oriental Hotels Limited, which owns the Radisson Hotel in Kathmandu, is also expanding its infrastructure. Oriental Hotels Limited has recorded profit in the first half of this fiscal year. What is the financial condition of the company? Yes, the company is currently profitable. However, Oriental Hotels experienced losses for two consecutive years due to the pandemic. For most of the pandemic period, the hotel was completely shut down. As the pandemic subsided, we adopted a policy of gradually reopening the hotel. As business began to grow, we opened both buildings. The government has set a target of one million tourists for 2023. Do you think this goal is achievable, and what steps should the government take to make it possible? I believe it is definitely possible if the government takes the initiative to showcase Nepal at all international trade fairs using proper visual aids to attract tourists to visit. At the same time, the government should ensure that Nepal's infrastructure is greatly improved. If these steps are taken, achieving the target of one million tourists is possible. Many five-star hotels are coming up in Kathmandu as well as other parts of the country in the near future. Can they make a profitable business in the present scenario? On one hand, more branded hotels coming up will raise the standard of hospitality because everybody will be on their toes. All these groups who're developing five-star properties have done their homework and they know the place has potential. The only thing that needs to be done from our side is to make sure we have a stable government in place. We have to make sure that tourism is given due importance as it is one of the major sectors that bring foreign currency to the country.