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The Nepal Electricity Authority (NEA) is facing challenges in ensuring a steady supply of electricity due to delays in the construction of two transmission lines. As a result, both industrial and household consumers are experiencing power cuts, despite the NEA having surplus electricity during the rainy season. NEA officials have stated that the intermittent power cuts are a direct result of the delay in constructing the transmission lines. The construction of the Hetauda-Dhalkebar-Inaruwa 400 kV and Hetauda-Bharatpur-Bardaghat 220 kV transmission lines has been ongoing for more than a decade, far beyond the originally planned completion time of three years. “The NEA’s system is under pressure due to the delay in these two transmission lines,” said Dirghayu Shrestha, the chief of the Transmission Directorate at NEA. “These projects have faced obstacles from the local community and have also been subjected to court-issued stay orders. Completing these transmission lines would have significantly increased our distribution capacity.” Due to the delay in constructing high-capacity transmission lines, the NEA is currently transmitting only around 80 MW using its old transmission system. The new lines would have supported the transmission of up to 300 MW. The construction of a 400 kV transmission line is essential for transmitting electricity to western Nepal from the Dhalkebar substation. The existing 132 kV transmission line in Hetauda is unable to carry sufficient electricity to supply the western region. As a result, NEA is unable to meet the demand and purchase electricity from independent power producers. Both transmission line projects were started with loan assistance from the World Bank. However, due to the construction delays, the World Bank withdrew from the projects in 2021. The World Bank had originally provided a $138 million concessional loan to fund the transmission lines, with the expectation that the projects would be completed within three years. While the contractor for the 400 kV transmission line was awarded the project in 2011, the contractor for the 220 kV transmission line was selected in 2009. Hetauda-Dhalkebar-Inaruwa 400 kV The NEA has prioritized the Hetauda-Dhalkebar-Inaruwa transmission line for strengthening its transmission network and facilitating power trade with India. “This trunkline is crucial for importing power from India and supplying it to industrial corridors in Birgunj and Biratnagar,” said Shyam Kumar Yadav, chief of the Hetauda-Dhalkebar-Inaruwa 400 kV project. Yadav added that the transmission line, to be built under the US government’s MCC project, will be connected to this trunk line. The project involves the installation of 792 towers. However, the project has faced challenges in constructing eight towers in Sarlahi and 25 towers in Makwanpur due to protests of the local people. “The locals are requesting a change in the transmission line’s route, but it is not feasible at this point,” added Yadav. The transmission line is being built by a joint venture between Angelique International from India and LTD from Germany. The project was initially estimated to be completed in 30 months, but it faced a four-year delay in obtaining forest clearance and an additional four years due to a court case. “If there are no further obstructions, we expect to charge the Inaruwa-Dhalkebar section of this transmission line within five months,” stated Yadav. “The completion of the Dhalkebar-Hetauda section is estimated to take one and a half years.” Hetauda-Bharatpur-Bardaghat 220 kV According to Santosh Sah, Chief of the Hetauda-Bharatpur-Bardaghat 220 kV transmission line project, one of the circuits of the double-circuit 220 kV transmission line will be operational within two weeks. “Currently, testing is underway on the Hetauda-Bharatpur section. Once this section is operational, NEA will be able to transmit 160 MW through this segment,” Sah stated. The Bharatpur-Bardaghat section is expected to be ready within three months. Out of the two remaining towers to be erected on this section, the first one is ready, and work is underway on the second tower. “Within 15 days of completing the tower construction, we will be able to install the wires,” Sah added. The project, originally estimated to be completed in 21 months, has experienced a delay of 14 years.

The Nepal Stock Exchange (NEPSE) plunged by 0. 06 points to close at 2,049.38 points on Thursday. Similarly, the sensitive index dropped by 0. 58 points to close at 382. 16 points. A total of 9,751,985-unit shares of 280 companies were traded for Rs 3. 07 billion. Meanwhile, City Hotel Limited and Rawa Energy Development Limited were the top gainers today with their price surging by 9. 99 percent. Likewise, Modi Energy Limited was the top loser as its price dropped by 10. 00 percent. At the end of the day, the total market capitalization stood at Rs 3. 00 trillion.  

The draft of the detailed project report (DPR) of the Raxaul-Kathmandu Cross-Border Railway Project has been handed over to Nepal. India handed over the draft DPR to the Ministry of Physical Infrastructure and Transport (MoPIT) this week. According to MoPIT officials, the southern neighbor will submit the final DPR to the Nepal government after incorporating suggestions from Nepal. The ministry’s spokesperson Bhimarjun Adhikari acknowledged that the draft DPR of the Raxaul-Kathmandu Railway Project has been received from India. “The draft DPR has been sent mainly seeking suggestions from Nepal,” said Adhikari, “We will submit it to the Railway Department who will study the report and make suggestions. Based on that, India will finalize the DPR and submit it to us.” India’s Konkan Railway Corporation Limited (KRCL) has been doing the DPR of the railway project which will connect Kathmandu with the Indian border town of Raxaul in the south. As per the memorandum of understanding (MoU) signed between Nepal and India on October 8, 2021, the detailed project report of the project should have been completed within 18 months, i.e., by mid-April, 2023. The Indian side has submitted the draft DPR two and half months later than the stipulated time. India has already given the report of the preliminary engineering and traffic survey of this railway to Nepal. According to the preliminary report prepared by KRCL, the length of the proposed Raxaul-Kathmandu railway will be 136 kilometers. As per the initial report of the Konkan Railway, a total of Rs 320bn will be required to build the broad-gauge Kathmandu-Raxaul Railway. Once completed, the broad-gauge line will give the Nepali capital a direct connection with the Indian railway network, enabling non-stop train travel to all Indian cities. The initial report of the project has shown that there will be 32 tunnels, with the longest would be eight kilometers long. The 136-kilometer-long railway project would have 40 kilometers of tunnelway and 35 small and large bridges. The preliminary study has shown that there will be 13 stations on the railway line. After receiving the DPR, the discussion about the modality of construction of the project will begin, according to the ministry officials. Nepal has been requesting India to build the project with a grant. Nepal and India had agreed to construct a cross-border electrified railway connecting Raxaul and Kathmandu during the then Prime Minister KP Sharma Oli’s India visit in April 2018. The two countries, in August 2018, exchanged a memorandum of understanding to carry out a preliminary engineering-cum-traffic survey of the broad-gauge line. With the submission of the draft DPR by India, the basis for the construction of this project has now been set. Once construction is completed, the railway line will provide Nepal with direct access to the huge Indian market. The electric railway line will also help replace fuel-based transportation, saving huge amounts of money being spent on the import of fuel, according to ministry officials. After the construction of the railway, goods can be transported directly to Kathmandu from India and third countries.  

With the deadline to repay the loans ending in mid-July, the Pokhara-based Fulbari Resort & Spa has again sought a nine-month time extension. Piyush Bahadur Amatya, chairman of Fulbari Resort has recently written to Nepal Bank Limited seeking nine-month time to repay the loans. Nepal Bank, in the second week of November 2022, had given a deadline of mid-July, 2023 to Fulbari Resort to pay the loans. An agreement was reached between the bank and Amatya to pay the principal and interest of the loans by mid-July, 2023. Amatya has promised to pay Rs 2.75bn to the bank if the loan payment period is extended by another nine months. However, Nepal Bank has not decided on Amatya’s request. The bank’s CEO Krishna Bahadur Adhikari said that they are currently discussing Amatya’s proposal. “The deadline given to Amatya is ending in mid-July. But he hasn’t paid any loan during this period,” said Adhikari, “We have forwarded his (Amatya’s) proposal to the bank board.” A consortium of banks led by Nepal Bank had given loans worth Rs 1.31bn to construct the five-star property in the mid-90s. Mired in financial difficulties, Fulbari Resort has not paid the regular installment and interest of the loan for more than a decade. According to CEO Adhikari, if the Nepal Bank board decides on a time extension, the resort will get additional time to pay back the loans. “Otherwise, we will initiate the auction process,” he said. The resort owes nearly Rs 4bn of loans taken from Nepal Bank as well as Rastriya Banijya Bank, and the Employees’ Provident Fund. As the lead bank, Nepal Bank had initiated the auctioning of the hotel in the last fiscal year. But Amatya went to court to stop the process. However, the Patan High Court in the first week of August 2022 issued an order in favor of the bank, allowing it to proceed with the auction. The 165-room five-star hotel was one of its kind properties in Nepal when it began operation in the late 90s. The resort came into operation in 1998 when Nepal was celebrating the Visit Nepal year 98. Established to cater the high-end tourists, the hotel has its own golf course also. Four years ago, Amatya and Nepal Bank signed an agreement to reopen the resort after it was shut down in 2017 following a labor dispute. At that time, Amatya committed to repay the bank loan and take the remaining money by selling the land owned by the resort. In 2019, the resort decided to reopen under new management. The Nepal Bank agreed to debt restructuring after the resort decided to bring in Marriott International to manage the hotel. However, the outbreak of the Covid-19 pandemic spoiled the plan.