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The 132/33 kV substation constructed in Markichowk, Tanahun, has officially come into operation. The Nepal Electricity Authority (NEA) recently completed the substation’s construction, marking the conclusion of the Madhyamsyangdi-Dumre-Damauli 132 kV transmission line project. Additionally, the Madhyamsyangdi-Damauli-Marsyangdi 132 kV double circuit transmission line is now operational.

The commissioning of the Markichowk Substation is expected to significantly reduce issues such as voltage drops, frequent line trips, and voltage loss in Gorkha, according to Kulman Ghising, Executive Director of NEA. He explained that electricity was previously supplied to Gorkha through a 33 kV line via Damauli-Dumre-Ambukhaireni, which presented challenges due to the long distance. With the new substation, electricity will now flow from Markichowk to Gorkha via Ambukhaireni, shortening the 33 kV line, reducing system leakage, improving voltage stability, and ensuring a more reliable supply.

Ghising also noted that electricity from the 132 kV line at Markichowk Substation can be stepped up to 220 kV through the 132/220 kV substation under construction as part of the Marsyangdi-Matatirtha 220 kV transmission line project. This ongoing project includes the development of a 132/220 kV substation at Markichowk itself.

The project, initiated in fiscal year 2012/13, involved a contract with the Chinese company Pinggao Group Co Ltd. The scope included constructing the Markichowk Substation, expanding GIS bays at Madhyamsyangdi and Damauli substations by one and two, respectively, and adding GIS bays at Lower Marsyangdi. The total estimated cost, funded by the Government of Nepal, NEA, and a concessional loan from the Asian Development Bank, was Rs 600m. According to project chief Shah, the construction was completed within the estimated budget.

The NEA is pursuing a nationwide campaign to build new substations and expand the distribution system to provide quality and reliable electricity. Following the successful elimination of load-shedding in Nepal, the NEA plans to construct and upgrade 30 grid substations and 20 distribution substations during the current fiscal year. Additionally, the authority aims to complete 600 circuit kilometers of transmission lines and 8,000 circuit kilometers of distribution lines within this period.

The government has also adopted a policy of developing high-capacity transmission lines to ensure a consistent power supply for existing and upcoming industrial areas and corridors. To support this, the NEA is actively upgrading substations, building new transmission lines, and strengthening the overall power distribution network.

The price of gold has increased by Rs 2, 000 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 153, 500 per tola today. It was traded at Rs 151, 500 per tola on Thursday.

Similarly, the price of silver has increased by Rs 20 and is being traded at Rs 1, 810 per tola today.

The price of gold has increased by Rs 500 per tola in the domestic market on Thursday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 151, 500 per tola today. It was traded at Rs 150, 000 per tola on Wednesday.

Similarly, the price of silver had increased by Rs 25 and is being traded at Rs 1, 790 per tola today.

The new urban policy has assigned responsibilities for urban development to the federal, provincial and local governments under the federal system. 

The government introduced National Urban Policy, 2024, last week, realizing that the 17-year-old policy would be inadequate to address recent social, political and economic developments in the country. 

While the policy is not a law, it serves as a guiding framework for drafting legislation, with a focus on expanding access to resilient urban infrastructure. The new policy reflects Nepal’s commitment to achieving sustainable urban development in line with global frameworks such as the SDGs, the Paris Agreement, and the Sendai Framework for Disaster Risk Reduction.

The previous policy of 2007 defined a city based on a minimum population of 5,000, a population density of 10 persons per hectare and at least 50 percent of the population engaged in non-agricultural activities. This contrasted with the standards of the United Nations Economic and Social Council (ECOSOC) which says urban centers should have at least 50,000 residents and a density of 1,500 people per square kilometer. Likewise, semi-urban centers require at least 3,000 residents and densities between 300–1,500 people per square kilometer.

The new policy aims to coordinate with stakeholders for planning, regulation and management of urban areas through appropriate measures to expand access to resilient urban infrastructure. It targets improving urban infrastructure indicators in urban centers by at least 15 percent on average by 2036. The policy envisages developing an advanced national urban system, expanding access to resilient urban infrastructure, maximum utilization of resources for systematic urban development, and enhancing inter-sectoral coordination and urban governance to meet its objectives.

Likewise, prioritized resource mobilization across all government tiers, leveraging alternative financial tools, promoting partnerships with private and cooperative sectors, and integrating informal economic activities into urban development are the major strategies that the policy has outlined to meet its objectives.

As per the new policy, urban development comes under the federal framework, with responsibilities divided among the federal, provincial, and local governments. The federal government is tasked with formulating national policies, laws and standards to ensure consistency and uniformity in urban growth across the country. This includes the scientific classification of cities and the establishment of minimum service benchmarks, which serve as a foundation for equitable and sustainable urbanisation.  Development of strategic urban infrastructure and the promotion of green and climate-resilient technologies to mitigate the impacts of climate change is also the responsibility of the federal government.

Likewise, provincial and local governments must implement federal policies within their jurisdictions. Ensuring equitable access to infrastructure and services across urban centers and addressing urban challenges through sustainable planning and resource mobilisation are the key responsibilities of the provincial and local governments.

Urbanization challenges

Nepal has witnessed rapid urbanization driven by migration from rural areas. While there were only 58 municipalities in 2011, the number has surged to 293 following state restructuring. As per the 2021 census, 66.01 percent of the population resides in municipalities, with urban population density at 27.07 percent and peri-urban population at 39.75 percent. 

However, there are significant inequalities in infrastructure and services among municipalities, with urban infrastructure indices varying significantly. Kathmandu Metropolitan City, for example, scores 0.91 in Urban Infrastructure Condition index, while Gulariya Municipality of Bardiya scores only 0.16. The scarcity of open spaces in urban areas—only 0.48 percent in Kathmandu and 0.06 percent in Lalitpur—further highlights the lack of essential social infrastructure in Nepal’s urban centers. Likewise, planned land development contributes just six percent of the total residential plots supplied. These disparities have spurred the need for a comprehensive urban system that includes market centers, small and medium cities, and larger urban economic hubs.

Migration has been identified as a major driver of urbanization. The 2021 census shows negative population growth in 34 hill districts, while 54 percent of the population resides in Tara region which has 17 percent of the country’s land area. This has created challenges like inadequate services, urban poverty, unemployment, and unplanned settlements, with limited accessibility for children, elderly and persons with disabilities.

Since the National Urban Policy of 2007 was brought before the country adopted the federal setup, it lacked a comprehensive framework for urban development across three tiers of government. Since challenges such as unmanaged urbanization, environmental degradation, insufficient services, and the destruction of heritage and green spaces hindered Nepal from fully benefiting from urbanization, the government realized the need to bring a new policy.

The new policy seeks to address these gaps by balancing urban structure, enhancing governance, and fostering partnerships among federal, provincial and local governments. It also emphasizes strategic investments in urban infrastructure to make cities more attractive and interconnected.