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According to constitutional provisions, the Madhes Province Government has the authority to manage industries with investments of up to Rs 500 million. However, files of industries established prior to the formation of the province remain stuck in federal-level departments under the Ministry of Industry, Commerce and Supplies, creating complications in their renewal and operation.

Madhes Province Minister for Industry, Commerce and Tourism, Basanta Kushwaha, said delays in transferring authority from Singha Durbar to the provinces have caused disorder and difficulties for industries. “The lack of documents has created problems in renovation, relocation, fines, and other industrial activities,” he said. Minister Kushwaha has submitted a seven-point memorandum to Union Minister for Industry, Commerce and Supplies Damodar Bhandari, calling for urgent action. He emphasized that the delay in implementing the powers guaranteed by the constitution has placed additional burdens on both the provincial government and industrialists in Madhes.

As per Sub-section 2 of Section 4 of the Industrial Business Act, 2019, registration, capital increases, relocation, and related activities for industries within Madhes Province (excluding those specified in Sub-section 1 of Section 4 of the 2010 Act) should fall under provincial jurisdiction. While Madhes Province has established an office of the Department of Industries in Birgunj, the Federal Department of Industries in Tripureshwor continues to handle much of the work. Minister Kushwaha noted that the federal government’s failure to transfer files on time has seriously hindered provincial performance, forcing industrialists to travel to Kathmandu for tasks that should be managed locally.

The memorandum further demands the transfer of industry files with fixed capital up to Rs 500m to the province. “Not only will this make our offices more effective, but it will also ensure employees have sufficient work,” Kushwaha stated. He also called for delegating environmental oversight of sand processing and crusher industries to the province, as well as inspection and enforcement authority regarding pollution from large industries—about 100 of which operate in Madhes Province.

Other demands include strengthening staff capacity in industrial administration, establishing startups and incubation centers, and creating mechanisms for sharing sectoral knowledge. Minister Kushwaha also stressed that exemptions under the Federal Economic Act should be granted based on recommendations from the provincial ministry.

In addition, the province has requested the transfer of responsibilities for special economic zones, industrial zones, industrial villages, export promotion zones, and IT parks. Madhes currently hosts the Simara Special Economic Zone and the Gajendra Narayan Singh Industrial Zone.

Responding to these concerns, Federal Minister for Industry, Commerce and Supplies Damodar Bhandari said efforts to transfer constitutionally mandated powers to the provinces will move forward soon. “We will hold discussions with the commerce ministers of all seven provinces and take the work ahead,” he said.

Gold price has set a new record in the domestic market on Sunday.

According to the Nepal Gold and Silver Dealers’ Association, the price of precious yellow metal has increased by Rs 2, 000 per tola and is being traded at Rs 207, 900 per tola. It was traded at Rs 205, 900 per tola on Tuesday.

The price of silver, however, has dropped by Rs 5 and is being traded at Rs 2, 480 per tola.

Gold prices climbed to yet another record high in the domestic market on Tuesday, mirroring the rally in the international market where bullion touched an all-time peak on the back of a weaker US dollar and expectations of a rate cut by the Federal Reserve. According to the Federation of Nepal Gold and Silver Dealers Associations, the price of fine gold rose by Rs 600 per tola, reaching Rs 205,900 per tola (11.664 grams)—the highest level ever recorded in the domestic market. Gold had set a record at Rs 205,300 per tola on Monday, while it was traded at Rs 203,600 per tola on Sunday.

Silver prices also rose to Rs 2,485 per tola, up from the previous day’s Rs 2,470. The surge in Nepal comes against the backdrop of global momentum. Gold prices climbed to an all-time high and sailed past $3,500 per ounce on Tuesday, extending gains to a sixth session on the back of a weaker dollar and rising bets of a US interest rate cut this month, according to Reuters. Gold prices rose 27% in the international market in 2024, and broke the $3,000 per ounce level for the first time in March this year.

Gold is widely considered a safe-haven asset during times of economic uncertainty and investors worldwide are increasingly shifting funds into bullion in recent years. “Gold’s rally could extend to $3,600 and even beyond by year-end if the Fed follows through with multiple rate cuts and if a Russia-Ukraine peace deal remains elusive,” Reuters quoted KCM Trade chief market analyst Tim Waterer as saying.

Nepal sources all of its gold through imports which means domestic prices are directly tied to international market trends. As a result, any uptick in global bullion prices quickly translates into higher costs in the Nepali market.

Gold first breached the Rs 200,000 threshold in the domestic market on Friday when the price of the yellow metal increased by Rs 1,200 per tola. It went up by Rs 3,000 per tola on Sunday, Rs 1,700 per tola on Monday, and Rs 600 per tola on Tuesday. The yellow metal has been shining in the domestic market for the past eight sessions, during which its price has risen by Rs 8,700 per tola. The continuous rise in prices over the past three days has added pressure on buyers ahead of the festive and wedding season, when demand for gold rises significantly. 

After a long wait, the 102-megawatt Bhotekoshi Hydropower Project in Sindhupalchowk has started trial production. The project, whose main generator is operated by Chilime Hydropower Company, a subsidiary of the Nepal Electricity Authority (NEA), began production following the successful testing of its transmission line last week, according to Ram Gopal Siwakoti, CEO of Bhotekoshi Hydropower Company.

The trial production began with one of the project’s three turbines. “Since the Bahrabise substation is not yet ready, we have been testing electricity via the Khimti substation on a line connecting it to the power house in central Bhotekoshi since last week,” said Siwakoti. “Despite many challenges, we have now succeeded in generating electricity.”

As work on the Bahrabise substation continues, electricity generated at Bhotekoshi is currently transmitted to the new Khimti substation via a 40-kilometer transmission line. “After a few days of testing, electricity will be connected to the national grid, and regular production will begin,” said Siwakoti, noting that revenue will start once it is linked to the national transmission line.

Construction of a two-kilometer section of the approximately four-kilometer transmission line connecting the project’s switchyard in Bahrabise Municipality-5 to the NEA’s Bahrabise substation in Municipality-3 is underway after reaching an agreement with local residents. The 220 kV single-circuit transmission line is expected to be completed before Dashain. Plans are in place to connect the generated electricity to the national grid via the Dhalkebar substation.

Siwakoti expressed confidence in the project’s trial production, saying it is expected to be 99 percent successful. Last year, a tunnel leak occurred when water was first sent through the 7.5 km tunnel, which runs from the dam in Chakuma, Bhotekoshi Rural Municipality (bordering China), to the power house in Jambu, Bahrabise Municipality.

The project was initiated in 2013 by former CEO Kulman Ghising with a target completion date of 2017. Delays were caused by local disputes, Covid-19, floods, landslides, and earthquakes. “We have brought Bhotekoshi, which was almost a failure, to a production-ready state,” said Siwakoti.

Once in regular production, the project is expected to generate 542.2m units of electricity annually. The NEA will purchase electricity at Rs 8.4 per unit in winter and Rs 4.8 per unit during the rainy season, generating annual revenue of approximately Rs 2.8bn for the company. The cost of electricity generation per megawatt is estimated at Rs 220m due to increased investment. During the dry season, the project will generate a minimum of 35 MW, while production could reach up to 110 MW during the rainy season.

The project’s initial estimated cost was Rs 12.28bn, excluding interest during construction, but the updated cost is Rs 16bn. Delays have resulted in daily interest payments exceeding Rs 5m.

The company’s ownership is split between founder shareholders (51 percent) and common shareholders (49 percent). Founder shareholders include NEA (10 percent), Chilime Hydropower Company (37 percent), Sindhupalchowk Hydropower Company (one percent), Nepal Araniko Hydropower Company (one percent), Sindhu Investment Company (1 percent), and Sindhu Bhotekoshi Hydropower (one percent). Common shareholders include Employees Provident Fund employees (19.5 percent), founding corporate body employees (3.5 percent), lending organization employees (one percent), Sindhupalchowk residents (10 percent), and the general public (15 percent). The company has already raised funds by issuing common shares.