Submit your Article

The price of gold has increased by Rs 500 per tola in the domestic market on Friday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 103, 900 per tola today. The gold was traded at Rs 103, 400 per tola on Thursday. Meanwhile, tejabi gold is being traded at Rs 103, 400 per tola. Similarly, the price of silver has dropped by Rs 5 and is being traded at Rs 1,365 per tola today.

In a 'season of mergers and acquisitions' in the Nepali banking sector, the proposed acquisition of Civil Bank by the Himalayan Bank Limited (HBL) has moved further ahead with the former's annual general meeting (AGM) approving the swap ratio. The Civil Bank's 12th AGM on Thursday endorsed the swap ratio of 100:80 that the two banks had agreed earlier. This means 100 shares of Civil Bank will get converted to 80.28 shares of Himalayan Bank after the acquisition. According to Pratap Jung Pandey, Chairman of Civil Bank, the unified business will be started within Magh after getting final approval from the Nepal Rastra Bank. For Himalayan Bank, the acquisition has become a sort of a matter of reputation, following the failed merger attempt with Nepal Investment Bank last year. Himalayan Bank started an initiative to acquire another commercial bank after its merger with Nepal Investment Bank Limited (NIB) got derailed at the final stage. The HBL-NIB eight months long merger process was aborted after the 29th annual general meeting (AGM) of HBL held on January 14, 2022, disapproved the plan of merger with NIB. Only 43.63 percent voted in favor of the merger while 42 percent came against the merger. As per the rules, a merger proposal will only be passed after 75 percent of the shareholders of the bank approve it. Three major shareholders of the HBL - Employees’ Provident Fund, N Trading Company, and Chhaya International- stood against the merger. With Nepal Rastra Bank continuously pushing the HBL for the merger, the bank on July 13, 2022, signed an acquisition MoU with Civil Bank. BFIs number declined by 183 in the past decade The number of banks and financial institutions (BFIs) has declined by 183 in the last one decade after NRB announced its merger and acquisition policy. The number of BFIs that stood at 303 in 2012 has come down to 120 as of January 11, 2023. Following the merger, a total of 10 commercial banks, 75 development banks, 61 finance companies, and 37 microfinance institutions have merged with other financial institutions. In 2022, 32 commercial banks, 92 development banks, 78 finance companies, and 111 microfinance institutions were operating in Nepal. Currently, this number has been reduced to 22 commercial banks, 17 development banks, 17 finance companies, and 64 microfinance institutions.

Prime Minister Pushpa Kamal Dahal has directed government authorities to take forward the development of the Budhi Gandaki Hydropower Project. The Prime Minister in a discussion on Thursday instructed Chief Secretary Shankar Das Bairagi to move ahead with all necessary works to start the development of the Budhi Gandaki Hydropower Project. The members of parliament representing different constituencies in Gorkha and Dhading were also present in the discussion. Dahal himself has also been elected as a member of parliament from Gorkha-2. The development of the much-talked-about project has failed to take off despite the government deciding to develop it on its own resources. The newly established Budhi Gandaki Jalbidhyut Public Limited has failed to come into operation with the finance ministry not providing the required Rs 10 million to the company. The company established in early September last year to develop the 1200MW Budhi Gandaki Hydropower Project is awaiting a budget release by the ministry so that it would get a permit from the Office of Company Registrar to commence operations. According to a board member of the company, the finance ministry denied releasing the fund ahead of the election, citing the code of conduct implemented by the Election Commission. “It is not clear when the fund will be disbursed as the new government has just been formed,” the company's director said. Budhi Gandaki is a ready-to-go project as its detailed project report (DPR) has already been prepared and the compensation distribution to the residents of the project-affected areas for the acquired land is also about to complete. The project will be Nepal's largest reservoir-type hydropower project and the total cost of its development has been initially estimated at USD 2.6 billion. The project, which will be built on the Budhi Gandaki River, is located at the boundary between the Gorkha and Dhading districts. However, ensuring adequate resources and closing the project's budget gap will be a difficult undertaking for the government. “As a ready-to-go project following the completion of DPR and almost completed compensation distribution process, the next challenge is to ensure sufficient funds to develop this project,” the board member said. “Once the company comes into operation, our focus will be to complete the financial closure.” A committee headed by the then National Planning Commission Vice-chairperson Swarnim Wagle has recommended the government in 2017 to develop this project with domestic resources. The committee suggested providing viability gap funding that will cover around one-third of the project development cost. As per the report, the government could cover the cost of land acquisition and resettlement of displaced families which could total as high as Rs 94 billion. According to the report, a significant chunk of resources can be generated from government institutions. An infrastructure tax being imposed on imported fuel could be an important source of revenue that can be used to develop the project. “Based on an average increase in petroleum consumption by 10 percent a year, as much as Rs164 billion can be collected from taxes imposed on fuel alone by the fiscal year 2026-27," reads the report. This estimated tax collection was calculated based on Rs 5 per liter infrastructure/carbon tax on sales of petroleum products (except cooking gas) that the government had imposed in 2015 to manage the financial resources for developing the Budhi Gandaki project. From the fiscal year 2018/19, the government started charging taxes under the name of ‘infrastructure development tax.’ The tax was also raised to Rs 10 per liter of petroleum products. According to the report, the extra fund can also be generated from government-owned entities like Nepal Electricity Authority, Employees Provident Fund, Nepal Telecom, Rastriya Beema Sansthan, Hydroelectric Investment and Development Company, Upper Tamakoshi Hydropower Company, Chilime Hydropower Company, Nepal Army, Nepal Police, and the general public could be tapped for the project. The report also stated the resources could also be generated from international donor agencies or by the issuance of project-specific bonds and credits from the project’s suppliers. However, the company’s director said that the government has not yet discussed with the donor agencies about potential funding from them. “This is the option that can be explored once the company comes into operation,” the director said. Massive sums of money have already been spent by the government to compensate the residents of the project-affected areas for the acquisition of their lands. According to the project's Environment, Compensation Distribution, Resettlement, and Rehabilitation Unit, Rs 41 billion has already been spent towards that end. It has been estimated that 58,000 ropanis of land will be needed to develop this project. For the project, hardly any difficulty in land acquisition has been experienced. There is also a broader political consensus for the development of this project with major political parties agreeing on Budhi Gandaki as an important hydropower project to ensure the energy security of the country for the coming decades. In 2017, the Pushpa Kamal Dahal-led government awarded a contract to build the project without competitive bidding to China Gezhouba Group Corporation under the engineering, procurement, construction, and financing (EPCF) modality. This was overturned by the Sher Bahadur Deuba-led government in November 2017. However, in September 2018, the then KP Sharma Oli administration decided in favor of the Chinese company, reversing the decision of the Deuba-led government. In April last year, the Deuba administration again terminated the license granted to the Chinese company as the contractor was not making any progress to move ahead with the development of the project. The government anticipates finishing the project eight years after the commencement of construction works.

The Nepali Congress must come clean about its intention behind giving the vote of confidence to Prime Minister Pushpa Kamal Dahal. Dahal already had 169 aye votes in the 275-member parliament to sail through Tuesday’s floor test, and yet, the NC threw its weight behind Dahal, effectively rendering the House without an opposition party. In a functioning parliamentary system, the presence of the opposition is vital. It acts as an alternative government in waiting and holds the government to account. The NC, which takes pride in calling itself a proponent of democratic values and parliamentary practice, has made a mockery of the very things it says it stands for. The NC, despite winning the most number of seats in the Nov 20 parliamentary election, could not be part of a post-poll ruling alliance because NC President Sher Bahadur Deuba refused to concede the prime minister’s office to Dahal as per their previous agreement. But when the third-placed Maoist Center joined forces with the UML and other fringe forces to form a government, the NC was stunned. The party not only lost its primacy at the center, it also lost its prospect of forming governments in the provinces. This is all Deuba’s doing. His desire to become prime minister for the sixth time led the NC to this situation. Now, by giving the trust vote to Dahal, Deuba is trying to dig out of the hole he has created for himself and his party. There are reports that Deuba is planning to reap political benefits by pitting the Maoists and the UML against each other. Deuba’s aversion to sitting on the opposition aisle is not new. In 2018, after the formation of a powerful government led by the erstwhile Nepal Communist Party (NCP), Deuba had faced criticism for trying to align with KP Sharma Oli of the UML to land some constitutional appointments. His decision to vote for the Dahal government in the recent vote of confidence has not sat well with some NC leaders. As Deuba holds sway in the party, he arm-twisted the disagreeing leaders into towing his line. A series of missteps by Deuba has not only created internal rift within the NC, the party is also at the risk of losing its supporters. Deuba would do well to switch to damage control mode before it’s too late.  

The Nepal Stock Exchange (NEPSE) plunged by 41. 04 points to close at 2,149. 39 points on Thursday. Similarly, the sensitive index dropped by 7. 89 points to close at 411. 25 points. A total of 14,482,959 unit shares of 252 companies were traded for Rs 5. 47 billion. Meanwhile, Kumari Dhanabriddhi Yojana was the top gainer today with its price surging by 10. 02 percent. Likewise, Gurans Laghubitta Bittiya Sanstha Limited was the top loser with its price dropped by 9. 18 percent. At the end of the day, the total market capitalization stood at Rs 3. 10 trillion.

An office bearers meeting of the Nepali Congress held at party President Sher Bahadur Deuba’s residence in Dhumbarahi on Thursday decided to hold discussions about the election of Speaker with other parties. According to party Deputy General Secretary Badri Pandey, the meeting has decided to discuss the election of the Speaker with other parties representing in the Parliament. “We will reach a decision about the candidacies of Speaker and Deputy Speaker after holding discussions with other parties,” he said after the meeting, adding, “The Province Working Committee will take a decision on the election of Speaker and Deputy Speaker in the Provinces.” The meeting has given the responsibility to hold discussions and coordinate with other parties to party President Deuba. The Nepali Congress has started facing widespread criticism after it decided to give a vote of confidence to Prime Minister Pushpa Kamal Dahal. Amid criticism, Deuba called the office bearers meeting today. The election of the Speaker is scheduled for January 19.  

Prime Minister Pushpa Kamal Dahal and CPN-UML Chairman KP Sharma Oli held a meeting at the former’s official residence in Baluwatar to discuss Cabinet expansion. Though a ruling coalition meeting was called today, it could not be held due to the busy schedule of the leaders, the Prime Minister’s Secretariat said. Home Minister and Rastriya Swatantra Party Chairman Rabi Lamichhane is in Chitwan while leaders of other parties are also busy with their party work. That is why, only two leaders held a meeting today. After winning the vote of confidence, Prime Minister Dahal and UML Chairman Oli are working on sharing the ministries and giving full shape to the Cabinet. The duo had held a meeting in Balkot on Wednesday. They discussed various issues including elections of Speaker, Deputy Speaker, President and Vice-President.

The logistics services provider Upaya has announced an investment closure of Rs 60 million from Nepal Infrastructures Investment Fund Limited (NIIF). Managed by Global Equity Fund (GEF), the NIFF is a capital venture jointly promoted by Global Equity Fund (GEF), Prime Life Insurance and Himalayan Everest Insurance. According to Upaya Managing Director Suman Rayamajhi, the funding from NIIF will be utilized for the business expansion and growth of Upaya 2.0. "Upaya is committed to making investments in two key areas of infrastructure and technology to uplift and collaborate the entire logistics sector of Nepal involving driver/rider partners, franchise partners, business partners, and alliance partners," he said.Dr. Manish Thapa, Managing Director of GEF said that with new investment, NIIF is confident that Upaya will continue to revolutionize the logistics industry and drive growth in the coming years through its use of advanced technology and innovative approaches to solving common challenges. In 2021, Upaya successfully closed funding worth Rs 180 million from Dolma Impact which was used for the expansion of the company along with the introduction of various logistics solutions across the country. Issuing a press statement Upaya said that the company has been successful in integrating all aspects of logistics involving market aggregation operations and end-to-end delivery operations. Currently, Upaya has a network of five branches, 10 regional hubs, and 100 plus last-mile delivery locations across the country. Established in 2018, Upaya has been providing technology-enabled logistics services to its clients. The company says it has been providing logistics services across four verticals targeted toward the needs of different types of businesses and individuals in Nepal. "The Series B closing target of Upaya is Rs 400 million for the successful completion of Upaya 2.0 and the company expects to close its funding target by end of 2023," reads the statement. According to the statement, the major areas of focus of Upaya 2.0 are building automated warehouses for the 3PL base of operation, Upaya Station - truckers resting hub across the country, Upaya-Nagar - transporters hub along with a multi-transport system in east, central and west Nepal for inter-city synchronization under Upaya Alliance. "Along with this, Upaya 2.0 targets to have 300 plus pin codes delivery points for catering to customer’s easy delivery across Nepal," says the company.