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Promoter shares of nearly a dozen companies have not been listed on the CDS and Clearing House due to a dispute over the issuance of separate International Securities Identification Numbers (ISINs) for promoter and ordinary shares. While ordinary shares of these companies have been listed at CDS and Clearing Limited (CDSC), 1.61bn units of promoter shares are still pending.

Since January, around a dozen companies, including six in the Hydropower group, one in Manufacturing, three in Others group, and one each in Hotels and Tourism and Microfinance sectors, have launched their IPO. Promoter shares of these companies have not been listed yet.

This is mainly due to the CDSC’s proposal to require two separate ISINs—one for promoter shares and another for ordinary shares—under its new Securities Dematerialization Operating Guidelines, 2025. The guidelines, however, have not been approved by the Securities Board of Nepal (Sebon). Stakeholders also say the move lacks legal basis and could seriously disrupt the capital market.

The Independent Power Producers’ Association of Nepal (IPPAN) has warned that the provision could derail the government’s target of generating 28,500 MW within the next decade. The association has warned of protest if the new provision is not withdrawn.

Stakeholders say the dual-ISIN system would create uncertainty for companies nearing the end of their lock-in period, as well as those preparing IPOs. Likewise, promoter shareholders complain their shares, once eligible for public trading, will remain trapped which will freeze liquidity and discourage further investment. The dispute has already blocked the listing of promoter shares from companies such as Om Mega Shri Pharmaceuticals and Bikash Hydropower.

Stakeholders argue that the provision is inconsistent with international practice. “Nowhere in the world are separate ISINs issued for promoter and ordinary shares,” said IPPAN Deputy Secretary General Prakash Dulal. “If implemented, it will undermine the principle that once the lock-in period ends, promoter shares should carry equal rights as ordinary shares.”

The controversy began in December last year when Emerging Nepal Limited requested a merger of its two ISINs after its lock-in expired. Although Nepal Stock Exchange (Nepse) granted it a single stock symbol as demanded, CDSC refused to unify the ISIN without Sebon’s approval.

Sebon has said that it has yet to decide on the guidelines prepared by the CDSC. Sebon Spokesperson Niranjaya Ghimire said the directive is still under discussion.

The guidelines require listed companies to have separate share codes for promoter shares and public shares. This code is known as the ISIN. Until now, except for banks and financial institutions—where founder and public shares are assigned separate ISINs—most other listed companies have been given a single ISIN. In the case of banks, financial institutions and insurance companies, Nepal Rastra Bank and the Nepal Insurance Authority mandate that at least 51 percent of shares remain with the promoter shareholders' group. For other companies, however, no such provision exists. This means that once the lock-in period ends, promoter shares automatically become equivalent to public shares.

The matter has now reached the Commission for the Investigation of Abuse of Authority (CIAA). In the petition filed with the constitutional anti-graft body on Aug 19, plaintiffs have accused CDSC officials of jeopardizing investors’ right to property and urged Sebon to act in line with global best practices.

At present, promoter shares worth an estimated Rs 87 billion in energy, media and cement sectors remain under lock-in. Of these, the energy sector alone accounts for Rs 53bn worth of shares.

Nepal has been studying hydrogen fuel since 2008. After nearly 17 years of research, the government has begun work on producing green hydrogen fuel. A memorandum of understanding has been signed with South Korean company G-Philos to establish a green hydrogen plant and fuel cell facility in Nepal.

The Investment Board Nepal (IBN) is preparing a detailed project report (DPR) to explore producing hydrogen fuel using around 20 megawatts of electricity. According to IBN spokesperson Pradyumna Prasad Upadhyay, the proposed project is estimated to cost about Rs 6 billion. Initially, only a small-scale production will be attempted, with plans to expand depending on the feasibility study.

The agreement was signed on Thursday by IBN CEO Sushil Gyawali and G-Philos CEO Ga Woo Park. As per the agreement, the company will prepare the DPR within 10 months of receiving a survey permit from the board.

G-Philos had submitted its proposal on April 15 for the establishment, development, and operation of a green hydrogen and fuel cell plant in a public-private partnership model. The 63rd meeting of the IBN decided to grant the survey permit.

Biraj Singh Thapa, a researcher and associate professor at Kathmandu University, welcomed the agreement, noting that KU has been conducting green hydrogen research and even demonstrated a hydrogen-powered car. He highlighted that the Hydrogen Policy 2023, along with tax exemptions on machinery and equipment and a five-year income tax holiday announced in the current budget, has drawn foreign interest in Nepal’s hydrogen sector.

According to the policy, machinery and equipment imported for green hydrogen production are exempt from all taxes and duties. This, Thapa added, is expected to attract both foreign and domestic investors. The 20 MW feasibility study will also assess whether the fuel can be used domestically or exported, and identify a potential plant location.

Kathmandu University established a Green Hydrogen Lab in 2020 to research the use of hydrogen in fertilizer factories, iron ore processing, and as a coal substitute in cement industries. Hydrogen has long been considered a potential renewable energy source, and its production could help Nepal meet its commitment to achieving net-zero carbon emissions.

Several institutions have studied Nepal’s hydrogen potential. Tribhuvan University and Western Michigan University jointly concluded that hydrogen could be produced using hydropower, reducing petroleum imports. The Asian Development Bank carried out a similar study in 2020, while the Water and Energy Commission Secretariat assessed possibilities in 2021. A study in 2022 further explored hydrogen-based fertilizer production.

Globally, countries including India, China, and the United States have already developed hydrogen roadmaps and policies. Nepal’s Hydrogen Policy 2023 also recognizes significant potential for hydrogen and related products from hydropower.

Hydrogen is produced by splitting water into hydrogen and oxygen using electricity. Roughly one kilogram of hydrogen can be extracted from nine kilograms of water, requiring about 50 kilowatt hours of electricity. With abundant water resources and surplus electricity, Nepal is well positioned to produce hydrogen.

Hydrogen can be stored as a liquid, gas, solid, or metal hydride, making it suitable for domestic use or export. Studies suggest that hydrogen could replace at least two percent of Nepal’s diesel imports. Given the size of the domestic diesel market—worth around Rs 71bn—green hydrogen could play an important role in diversifying Nepal’s energy mix and enhancing energy security over the next decade.

Preparations for the Power Development Agreement (PDA) of the West Seti Hydropower Project have officially begun. A negotiation committee led by Investment Board Nepal (IBN) CEO Sushil Bhatta has been formed to draft the PDA. The decision was made during the 65th meeting of the board chaired by Prime Minister KP Sharma Oli. The committee has been tasked with holding discussions with the project developer on the PDA draft, financial structure, and related matters, and then submitting recommendations to the board.

The committee includes joint secretaries from the Prime Minister’s Office, Ministry of Finance, Ministry of Energy, and Ministry of Law; the Director General of the Department of Electricity Development; IBN’s technical joint secretary; the Deputy Managing Director of the Nepal Electricity Authority; and a senior divisional engineer (hydropower) of the board, who will serve as the committee’s member secretary.

According to IBN spokesperson Pradyumna Prasad Upadhyay, the committee will work to resolve disagreements over the project’s financial structure and finalize the PDA. The main sticking point between Nepal and India’s National Hydroelectric Power Corporation (NHPC) is the provision of 21 percent free electricity to Nepal. While the board’s agreement with the developer includes this condition, NHPC has expressed reservations, citing high costs for a reservoir-based project.

In Sept 2022, IBN signed a pact with NHPC to develop the 750 MW West Seti and the 450 MW Seti River-6 projects. The agreement specified that Nepal would receive 262 MW—21.9 percent of the total installed capacity—free of cost. NHPC has since completed and submitted its Detailed Project Report (DPR), which proposes increasing West Seti’s capacity to 800 MW and developing it as a reservoir-based project, pushing estimated costs to nearly Rs 200bn with a construction timeline of about six years.

Technical studies show that while a reservoir-based model offers higher storage capacity, it will flood over 3,300 hectares of land, displacing communities in Baitadi and Bajhang districts. The commission’s study committee earlier highlighted the high resettlement and rehabilitation costs associated with this model. Despite these challenges, both sides are continuing discussions to resolve outstanding issues, including the share of free electricity and the sale market for the power generated. Once the West Seti PDA is finalized, IBN plans to move ahead with the Seti River-6 project.

The financial management plan for the Upper Karnali Hydropower Project, submitted seven months ago, has yet to be approved. The project, which took 10 years to prepare its financial plan for the Investment Board Nepal (IBN), is being developed by India’s Grandhi Mallikarjuna Rao (GMR). GMR submitted the financial plan on Jan 17, but it has remained pending due to issues involving one of its proposed shareholders, the Indian Renewable Energy Development Agency (IREDA).

IREDA had committed to invest five percent in the 900 MW project, but the Reserve Bank of India (RBI) did not approve the investment, citing incomplete processes. IREDA has since reapplied for approval after addressing RBI’s requirements. Meanwhile, GMR has also prepared an alternative shareholding structure without IREDA, proposing 36.5 percent each for GMR and Sutlej Jal Vidyut Nigam (SJVN), and 27 percent for the Nepal Electricity Authority (NEA). If RBI clears IREDA’s participation, however, the shareholding will remain as earlier proposed—34 percent each for GMR and Sutlej, five percent for IREDA, and 27 percent for NEA.

Investment Board spokesperson Pradyumna Prasad Upadhyay confirmed that no official request has yet been received regarding the change in shareholding. The board had earlier approved Sutlej and IREDA as equity partners in its 60th meeting, and GMR had signed agreements with both in August 2025 to sell shares. According to IBN, GMR also retains the option of financing the project through the net worth of its parent company if IREDA’s investment is ultimately rejected.

GMR was awarded the project in 2008 after applying in 2006. However, the company has repeatedly extended deadlines for financial closure, including in 2016, 2017, 2018, 2019, and 2022. The financial plan was finally submitted in 2024 along with an action plan, under which some initial works—such as access road construction and bridge preparations—have already begun.

According to GMR’s plan, pre-construction work is scheduled from early 2025 to Feb 2026, with major construction starting afterward. Diversion works are set for Jan 2026 to Aug 2027, road tunnel construction from Jan 2026 to May 2027, and the Karnali River bridge from Jan to Nov 2026. The company also plans to complete the transmission line by Jan 2026. Key components such as the headrace tunnel, dam, powerhouse, and electromechanical works are targeted for completion between 2029 and 2031, with the entire project expected to be finished by June 2031.

The project, located in Achham district, aims to supply electricity to Nepal, India, and Bangladesh. Nepal will receive Rs 4.5bn in benefits over 25 years through equity, free energy, and royalties. Initially, GMR had signed a power purchase agreement to export 500 MW to Bangladesh, but the Bangladesh government suspended such deals under the Special Power Act, and its Power Development Board has reportedly cancelled the preliminary supply agreement. However, IBN says it has not received any official communication regarding this decision.

The Upper Karnali project is considered one of the lowest-cost hydropower projects in the world, requiring only a 2.4-kilometer tunnel and displacing relatively few households. But with delays in construction, the estimated cost has already escalated to nearly Rs 2.5trn.

Preparations are underway to lease large government-invested structures for full operation, with government officials stating that projects worth more than Rs 1bn are being prepared for leasing to generate returns. The government has made arrangements to lease six structures: the current Parliament Building (Birendra International Conference Center), the Sunrise Assembly Hall in Godavari, Dharahara in Sundhara, the Damak Business Center, and the Assembly and Exhibition Halls in Butwal.

Since the government cannot use these structures intensively, they are not generating adequate returns. The government has proposed to improve their operation through partnerships with the private sector via leasing. However, there is currently no law or established practice for leasing government buildings and structures.

Although there is no law, the government is preparing to move forward by setting its own standards. According to Narayan Prasad Mainali, spokesperson for the Ministry of Urban Development, the ministry has already prepared standards for operating special structures for leasing government buildings. The former Birendra International Conference Center (now the Parliament Building) has been renamed, and a ‘Special Structure Management and Implementation Committee’ has been established. The government formed this committee under the ‘Special Structure Operation and Management Development Committee (Formation) Order, 2024’.

This government committee is responsible for the operation, management, conservation, and potential partnership (lease/rent) processes for government structures. The committee was formed in Nov 2024 after it became apparent that billions of rupees invested in these buildings would result in them remaining vacant, incurring losses, or being economically unsustainable if used only by government agencies. The committee was given the responsibility of deciding the operational model for these assets (government, private partnership, or lease). 

The chairperson of this committee is the secretary of the Ministry of Urban Development, and the executive director is a government-designated individual. However, the executive director position has been vacant for about three months. “An advertisement has been issued for the post. The committee will get an executive director at some point. Until then, I have been assigned the responsibility,” said spokesperson Mainali.

According to Mainali, a board meeting of the committee is being held on Sunday, where the criteria for the operation of special structures, prepared by the Ministry of Urban Development, will be presented. He says that once the meeting passes the criteria, they will be submitted to the Ministries of Law and Finance for their opinions. “After receiving opinions from these ministries, it will be submitted to the Council of Ministers for approval, and the standards will be implemented with the approval of the Council of Ministers,” Mainali stated.

“A leasing document has been prepared that details the total government investment in the specified structures, operating expenses, and the projected return period. The standards have been set to lease for about five to six years,” Mainali said. Based on this, the price of each structure will be determined, and a tender will be called for an amount not less than that.

Of the six structures the government is preparing to lease, the Sunrise Assembly Hall, Damak Business Center, and Butwal Assembly Hall have been completed. Some construction work is still pending on the Dharahara in Sundhara and the Butwal Exhibition Hall. The Parliament Building in New Baneshwor was constructed by the Chinese government around 1993. The BICC Building, which was previously used for meetings and conferences, has been used as the Parliament Building by the government since the establishment of the Republic.

Data released last week by the International Air Transport Association (IATA) shows an 11.8 percent increase in the number of business class and premium passengers in global air travel.

The latest edition of the World Air Transport Statistics (WATS), based on data from more than 240 international airlines, reports that economy class passengers grew by 11.5 percent. Business and premium class travelers totaled about 116m—around six percent of all international passengers.

The report also provides insights into operating costs and revenues, aircraft utilization, airline employment figures, and the overall financial health of the industry. According to IATA, total international passenger numbers reached about 2bn.

The Asia-Pacific region led the growth in international travel, with total passenger numbers up 28.3 percent. Business class passengers in the region increased by 22.8 percent, while economy class grew by 28.6 percent. In contrast, North America recorded the lowest international passenger growth rate—5.9 percent overall, with 9.4 percent growth in business class and 5.6 percent in economy.

In 2024, the world’s busiest air route was Jeju–Seoul in the Asia-Pacific region, with 13.2m passengers. The region dominated the list of the world’s 10 busiest routes, which also included Sapporo–Tokyo Haneda with 9.2m passengers, Fukuoka–Tokyo Haneda with 9m, and Hanoi–Ho Chi Minh City with 8m. Other high-traffic routes were Melbourne Tullamarine–Sydney (7.2m), Jeddah–Riyadh (6.3m), Mumbai–Delhi (5.9m), Tokyo Haneda–Okinawa (5.6m), Shanghai Hongqiao–Shenzhen (5.3m), and Beijing Capital–Shanghai Hongqiao (5.3m).

Bogotá–Medellín was the busiest route in Latin America with 3.8m passengers, while Cape Town–Johannesburg topped Africa with 3.3m. In North America, New York JFK–Los Angeles was the busiest route with 2.2m passengers, and within Europe, Barcelona–Palma de Mallorca led with 2m.

Boeing and Airbus narrowbody aircraft were the most widely used in 2024. The Boeing 737 (all variants) operated 10m flights with 2.4trn available seat kilometers (ASKs). It was followed by the Airbus A320 with 7.9m flights and 1.7trn ASKs, and the Airbus A321 with 3.4m flights and 1.1trn ASKs.

The United States remained the world’s largest aviation market in 2024, with 876m passengers. Domestic flights grew by 5.2 percent compared to the previous year. China ranked second with 741m passengers, an 18.7 percent increase from 2023.

The much-delayed Narayanghat–Butwal road expansion project has requested a fourth and final deadline extension, after failing to complete construction within the previously extended deadline of July 23. Despite nearly six years since the contract signing, physical progress remains around 70 percent, prompting concerns over project management and inter-agency coordination.

The project has submitted a request to the Department of Roads to extend the deadline by another year, with the aim of inaugurating the upgraded road by March 2026. The Ministry of Physical Infrastructure and Transport has stated it sees no alternative but to continue with the current Chinese contractor, though officials insist that this will be the final extension and that the contractor must complete the work within the new deadline.

Initially awarded in Dec 2018, the road’s first scheduled completion date was Aug 2022. The project faced numerous setbacks, including the Covid-19 pandemic, delays in tree clearance, utility pole relocation, and institutional instability. Former Secretary Arjun Jung Thapa noted that nearly two years were lost just navigating delays in tree-cutting permissions. An initial Environmental Impact Assessment (EIA) underestimated the number of trees by over 40,000—prompting a re-evaluation that stalled work further.

Additionally, electrical pole relocation and changes in political leadership and bureaucracy contributed to the prolonged delays.

Of the 113 kilometers of the road under construction, 60 km of four-lane paving and 33.5 km of two-lane blacktopping have been completed. The project saw a notable acceleration in 2023/24, completing 30 km of four-lane and 17.5 km of two-lane paving in that year alone.

The project is divided into two sections: Western Section: Butwal to Daunne (48 km) and Eastern Section: Daunne to Narayanghat (65 km).

According to Asian Development Bank (ADB) Project Director Chudamani Dhakal, the primary paving will be completed by March 2026, with ancillary works to finish by July 2026). Traffic flow has improved in most areas, except for Daunne, where travelers continue to face extreme hardship due to difficult terrain and construction bottlenecks.

The 13-kilometer stretch through Daunne remains the most challenging part of the project. Located in a fragile Chure region with steep gradients and narrow paths, this segment has posed engineering, geological, and traffic management hurdles. Officials say the need for deep cuts, the presence of massive boulders, and the lack of space for machinery and material storage have severely hampered progress.

With no alternative routes, both construction and traffic must coexist—leading to slower work and persistent public suffering. Although options such as a tunnel or bypass were considered, cost, environmental, and time constraints have so far ruled them out.

To minimize ecological impact, the project includes 43 culverts, two monkey crossings, and 27 ponds. Rope bridges and elevated structures have been installed to facilitate animal movement. The project also donated two vehicles to the District Forest Office in Nawalparasi and plans training programs for speed regulation in protected areas.

In the Eastern Section, which spans 65 kilometers, progress has been steady. About 56.6 kilometers of one-sided paving have been completed, along with two kilometers of bridge segments. Out of the 35 planned bridges, including the prominent Narayani Bridge, 31 have been completed, while two are still under construction. However, 6.4 kilometers remain unpaved, mostly in the Daunne area and near marketplace sections.

Meanwhile, the Western Section, covering 48 kilometers, has achieved 69 percent physical progress and 64 percent financial progress. So far, 62 percent of the paving work has been completed. Of the nine bridges planned in this section, eight have been finished, with construction still ongoing at the Rohini River bridge.

The project regained momentum after Prime Minister KP Sharma Oli intervened in April 2024. During an inspection of the Gaindakot section, he instructed authorities to expedite the project and issued a clear warning that contracts would be revoked if work did not commence by Nov 2024. Following his involvement and subsequent diplomatic efforts with the Chinese government, the project began moving forward again.

Authorities argue that cancelling the contract would only delay the project further. Hence, the decision to continue with the same contractor was made, while maintaining pressure for timely completion.

The project is being implemented with Asian Development Bank funding, with 83 percent of the cost covered by loans and 17 percent by the Nepal government. Initially estimated at Rs 21.75bn, the project was awarded at approximately Rs 17bn.

The reconstruction and management of the Jhyaple River section, damaged by a landslide under the Nagdhunga–Naubise road stretch, is in its final stages. Keshav Prasad Ojha, project chief of the eastern section of the Nagdhunga–Muglin road, said that the repair work is being carried out at a cost of around Rs 20m and is expected to be completed by July.

Following heavy rainfall last year, a massive landslide occurred in Jhyaple River along the Tribhuvan Highway. The landslide killed 35 people and swept 2.7 kilometers downhill from a point 600 meters ahead of Nagdhunga. It destroyed key infrastructure including retaining walls, breastwalls, and culverts.

Ojha said that reconstruction is underway in three phases, two of which have already been completed. “The first step involved protecting a previously built wall in the river, which was in a risky state due to the landslide. We conducted micropiling work to stabilize it. The second step was installing gabion walls in the lower area, which is now nearly complete. The third step, installing soil anchors on the damaged wall, is scheduled for completion by August,” he added.

Despite progress, long-term landslide mitigation in the Jhyaple area is expected to begin only after eight months. The Nagdhunga–Muglin road sees daily traffic of about 15,000 vehicles. Its upgrade is being funded through a concessional World Bank loan and investment from the Government of Nepal.

The 12.26-kilometer Nagdhunga–Naubise stretch is the first package under this project. A contract agreement was signed with the Jiangsu-Sagun JV on 12 April 2022, and construction began on 9 June 2022. The project, originally set to complete by 30 May 2024, has seen two deadline extensions—first to 9 Feb 2025, and again to July 25. The section is currently 84 percent complete, and discussions are ongoing with consultants regarding another extension.

Ojha explained that reconstruction was delayed due to the need for a fresh study and redesign following the unexpected landslide. “We hadn’t anticipated a landslide of this scale. A separate study was launched in October, with resource allocation and modality finalized. The consultant submitted the report in May,” he said. The study, jointly conducted by ITECO and TMS, assessed soil quality and geological conditions. Based on its recommendations, the original contractor, Jiangsu-Sagun JV, was retained for landslide management under a contract variation.

However, Ojha emphasized that this current work addresses only the immediate damage. “A new contract and budget will be needed for a comprehensive landslide management plan in the Jhyaple River area,” he said.

Gyanendra Ghimire, manager of Jiangsu-Sagun JV, said that land plotting above the Jhyaple River contributed to the disaster. “Soil, stones, and debris were left uncleared, forming a landslide-prone area. The landslide occurred when silt blocked drainage and flowed directly into the river,” he explained.

Suman Ghimire, Chief District Officer of Dhading, said the landslide was likely triggered by the area’s weak geological structure. “Risk-reduction work is ongoing,” he said. The Department of Roads has taken a specialized approach for this landslide. Gabion and bamboo-crested walls have been installed to prevent further slides, while micro-piling and RCT wall construction are underway to stabilize the road above the affected area.