Gold price drops by Rs 1, 000 per tola on Thursday

The price of gold has dropped by Rs 1, 000 per tola in the domestic market on Thursday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow bullion is being traded at Rs 111, 700 per tola today. The yellow metal was traded at Rs 112, 700 per tola on Wednesday. Meanwhile, tejabi gold is being traded at Rs 111, 150 per tola. It was traded at Rs 112, 150. Similarly, the silver is being traded at Rs 1,415 per tola today.

Shortage of explosives likely to continue despite govt's initiative

Although the government paved the way for under-construction projects that are facing a shortage of explosives to borrow explosives from other projects in the middle of May, the implementation of the barter system is likely to be challenging. A number of construction projects, particularly those developed or contracted to Chinese companies, are facing a shortage of explosives as the southern neighbor has denied the supplies. In its bid to sort out the issue, the government amended the Explosives Rule-1964, making provision that one construction project could borrow explosives from another project--that does not need explosives urgently. But a supplier of explosives for construction projects in Nepal said that the Indian embassy has been refusing to issue a No Objection Certificate as long as the end user is not confirmed. “The Indian embassy has clearly communicated to us that a No Objection Certificate will not be issued if there is a scope of transferring the explosive to another project,” the supplier said. Only after receiving the No Objection Certificate, a supplier can receive supplies of explosives from India. India is a traditional supplier of explosives for Nepal’s construction projects. As per the new rule, the explosives can be borrowed to carry out the construction works related to the roads, energy projects and various other development projects that require blasting of explosives. One can borrow the explosive only if it is facing acute shortage and supply cannot be received immediately and Nepal Army is also unable to supply the explosive, the rule says. Kathmandu-Nijgadh Fast Track Project, Tanahu Hydropower Company Hongshi Cement, Huaxin Cement, and Senjen Khola Hydropower are among the projects that faced explosives shortages in recent months. All of them have either Chinese investments or the involvement of the Chinese contractor. Given the chronic shortage of explosives, the government came up with a new rule allowing the borrowing of explosives. In fact, some projects have got supplies of explosives even from China in recent months with India being reluctant to supply the explosives. Earlier, it was reported that Nepal received the supply of explosives from China in April. According to the report, a company named—Tactical Solutions Pvt Ltd had supplied 90 tonnes of explosives from China for the Hongshi Shivam Cement Factory located at Nawalparasi and SinoHydro Corporation, contractor for the Senjen Khola Hydropower Project in Rasuwa district. It later supplied additional explosives brought from China to Huaxin Cement Narayani and Senjen Khola Hydropower too, according to the reports. But suppliers say that taking the delivery of explosives from China is more complicated than bringing them from India because of the long distance and high altitudes involved. But Nepal has been traditionally reliant on India for commercial explosives. Even Sunchari Emulsion Plant, an explosive plant run by Nepal Army in Makwanpur is not operating because of a lack of raw materials which are supplied by Indian entities. As the acute shortage of explosives affected the implementation of key development projects in the country, Nepal has sought ease in the supply of explosives at the highest level. Prime Minister Pushpa Kamal Dahal told the media that he had raised the issue with Indian Prime Minister Narendra Modi regarding the issues asking the latter to ease supply. “I have talked with Prime Minister Modi to ease the supply of explosives required for big infrastructure projects like hydropower and roads,” he said upon his arrival at Tribhuvan International Airport after visiting India.

NEA plans to export 200 MW to India by signing five-year PPA

After Nepal and India signed an initial agreement on long-term power trade, the Nepal Electricity Authority (NEA) is going to enter into a medium-term power purchase agreement (PPA) with India to sell 200 MW of electricity in the first phase. The state-owned power utility has recently sent a draft of the PPA to India's NTPC Vidyut Vyapar Nigam Ltd (NVVN) to sell 200 MW of electricity starting this wet season. After NVVN approves the PPA, the NEA plans to enter into an agreement with the Indian power company for a five-year period. According to NEA officials, NEA plans to export 200 MW of electricity from this wet season. "We have sent a draft proposal to NVVN, the electricity trading company in India, to sell electricity for the medium term," said a senior NEA official. A preliminary agreement for the power trade agreement has been signed between Nepal and India during Prime Minister Dahal's recent visit to India. During the visit, the southern neighbor agreed to buy 10,000 MW of electricity from Nepal in the next 10 years. The authority has planned to export up to 1,200MW of electricity to India this year. The NEA is preparing to export 200 MW by signing the medium-term PPA and the rest to the Indian energy exchange. NEA plans to export power generated from six power projects - 83.42 MW Solukhola (Dudhkoshi) Project, 40.74 MW Mistry Khola Project, 34.92 MW Upper Balefi A Project, 28.17 MW Likhukhola-1 Project, and 12.75 MW Upper Chaku Khola Project. Nepal has been requesting the southern neighbor for a long-term power trade deal arguing that an inter-government agreement would lock in the market and end the unpredictability of the Indian market’s availability for electricity from Nepal in the long run. The signing of the preliminary agreement, according to Nepali officials, has ensured a market for electricity produced in Nepal. Based on the agreement reached between the two countries, the NEA is planning to complete a medium-term PPA (five-year period) to export 200 MW of electricity in the first phase. According to NEA sources, it was planning to sign PPA with NVVN during Prime Minister Dahal's India visit. However, the Indian side failed to endorse the PPA draft sent by the NEA on time. "Now, NEA and NVVN can enter into medium-term and long-term PPA," said an official of the Ministry of Energy. According to the sources, NEA is planning to sell electricity at a rate of INR 5 which is equivalent to Rs 8 per unit. The authority has been purchasing electricity from domestic power developers at Rs 4.80 per unit. NEA has been selling electricity to Indian energy exchange for up to INR 12 per unit. However, Nepali officials say it will be difficult to get the same rate in the case of medium and long-term PPA. Nepal has started exporting surplus electricity to India during the wet season, it has to import electricity in the dry season to meet the power demand. The NEA has been selling electricity in the day-ahead market of Indian Energy Exchange Limited (IX) through daily bidding. Currently, the southern neighbor has allowed Nepal to sell 452.6 MW of electricity generated by 10 hydropower projects in the Indian power market. Since the approvals given to the 10 hydropower projects need to be renewed every year, Nepal has been pushing for a long-term power agreement with India.

Nepse surges by 4. 68 points on Wednesday

The Nepal Stock Exchange (NEPSE) gained 4.68 points to close at 1,932.33 points on Wednesday. Similarly, the sensitive index surged by 0.38 points to close at 365. 47 points. A total of 6,541,388-unit shares of 261 companies were traded for Rs 2. 36 billion. Meanwhile, Unique Nepal Laghubitta Bittiya Sanstha Limited was the top gainer today, with its price surging by 10. 00 percent. Similarly, Siddhartha Equity Fund was the top loser as its price fell by 4.35 percent. At the end of the day, total market capitalization stood at Rs 2. 82 trillion.