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Nepal has raised the issue of new air routes with India yet again.

During a recent meeting with the visiting Ministry of External Affairs Additional Secretary, Munu Mahawar, in Kathmandu, Minister for Foreign Affairs Dr Azu Rana Deuba raised the issue of new air routes that Nepal has been demanding for a long time. 

Nepal has been in discussions with India for over a decade regarding new air entry routes. The government has been negotiating with the Indian government to utilize the airspace of Bhairahawa, Mahendranagar, Nepalgunj and Janakpur for air route access. However, Nepal has not yet secured air routes from these locations.

Gyanendra Bhul, the information officer at the Civil Aviation Authority of Nepal (CAAN), said that Nepal has presented all proposals to India regarding new routes. “Nepal has raised the issue of new air routes in all bilateral meetings - from the Prime Minister level to the ministerial level. While Nepal has presented its case, the Indian side has not yet reached a decision,” he added.

Due to India’s inability to provide a conclusive decision on new routes, the government’s plan to bring aircraft into Nepal using the airspace of Bhairahawa, Mahendranagar, Nepalgunj and Janakpur has been stalled.

Nepal had formally requested India to allow air access through Janakpur, Bhairahawa, Nepalgunj and Mahendranagar during Prime Minister Narendra Modi’s visit to Kathmandu in 2014. In May 2023, talks were held in New Delhi between officials from Nepal's Ministry of Culture, Tourism, and Civil Aviation, the Civil Aviation Authority of Nepal, and the Airports Authority of India, but no conclusion was reached.

According to CAAN, if India provides new air entry routes as requested by Nepal, it would save flight costs and time, and also resolve the issue of air traffic congestion. Currently, 90 percent of international flights enter Nepal through Simara, while flights from China enter through the Makalu region in Sankhuwasabha district and flights from Bhutan enter through Mechi. The air routes for exiting Nepal include Simara, Biratnagar, Janakpur, Mahendranagar and Bhairahawa.

Nepal has been facing several challenges such as air traffic congestion, disrupted flight schedules, and the need to hold aircraft in the air for extended periods due to the reliance on a single route. CAAN has been saying that if additional routes are made available, managing air traffic would become easier. If India agrees to at least allow the Bhairahawa and Nepalgunj routes, the distance for flights entering Nepal would be significantly reduced, CAAN officials say.

Currently, aircraft coming to Gautam Buddha International Airport in Bhairahawa from Gulf countries enter the Nepali airspace from Simara and fly westward to Bhairahawa as they are not allowed to enter the country from the west. Experts say new international airports in Bhairahawa and Pokhara will be unfeasible if aircraft are not allowed to enter from the west.

The price of gold has increased by Rs 2, 300 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 162, 800 per tola today. It was traded at Rs 160, 500 per tola on Thursday.

Similarly, the price of silver has increased by Rs 30 and is being traded at Rs 1, 915 per tola today.

The Transport Management Office, Hetauda, has collected more than Rs 290 million in revenue in six months of the current fiscal year, 2081/82.

Office Chief Prabin Shrestha said they collected such amount of revenue from the registration of new vehicles, renewal and distribution of driving license in half way into the current fiscal year.

A total of Rs 173.8 million in revenue was collected from distribution of driving license, while Rs 45.36 million from vehicle tax, and Rs 45.6 million from income of transport sector.

Similarly, 1,280 motorcycles, 513 small vehicles, 337 three-wheeler tempo and e-rickshaws, 321 medium and large vehicles and five tractors were registered in the transport office during the period, he added.

Likewise, 3,611 licenses including 2,163 new ones were distributed while 2,984 licenses were renewed.

The office had collected Rs 560.7 million in revenue under different headings in the fiscal year, 2080/81. 

The average non-performing loans (NPLs) of finance companies have nearly doubled over the past year. 

A study of second-quarter financial statements of Class ‘C’ finance companies for the fiscal year 2024/25 shows that the average NPLs reached 11.72 percent in mid-Jan this year, up from 6.55 percent in mid-Jan last year. This spike is due to the high non-performing loans of two finance companies—Janaki Finance and Pokhara Finance. While Janaki Finance has an NPL of 40.88 percent, Pokhara Finance has an NPL level of 33.44 percent. 

The NPL levels of four other finance companies have reached double digits. Nine finance companies have single-digit NPL levels, with Gurkhas Finance reporting the lowest NPL of 3.06 percent. 

The second-quarter results show that Janaki Finance and Pokhara Finance are in deep trouble. The accumulated loss of Janaki Finance, which has a paid-up capital of Rs 690m, has reached Rs 969.8m. Similarly, Pokhara Finance, whose paid-up capital is Rs 1.08bn, has an accumulated loss of Rs 1.55bn. 

Other finance companies with high NPL levels include Samriddhi Finance, Reliance Finance, and Central Finance. The NPL level of Samriddhi Finance increased from 4.68 percent in mid-Jan last year to 19.34 percent. Similarly, Reliance Finance’s NPL rose from 9.67 percent to 14.31 percent during the review period. Central Finance also reported a 2.5 percent point increase in its NPL level, reaching 11.94 percent in mid-Jan. 

Likewise, Multipurpose Finance’s NPLs have increased from 1.48 percent to 5.45 percent, while Nepal Finance has managed to slightly decrease its NPL from 10.52 percent to 10.46 percent. While the NPL of Progressive Finance has declined from 11.45 percent to 7.57 percent, Shri Investment Finance and Manjushree Finance saw their NPLs go up from 1.94 percent to 3.71 percent and 3.5 percent to 3.86 percent, respectively.