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The Securities Board of Nepal (Sebon) is considering a new policy that would bar hydropower companies from issuing initial public offerings (IPOs) before they begin generating electricity.

According to an official at Sebon, the capital market regulator has held preliminary discussions on restricting hydropower developers from going public before starting power generation. This comes in response to growing concerns about risks posed to general investors when companies without completed projects raise funds from the public.

The recommendation to introduce such a policy originated from the High-Level Economic Reforms Advisory Commission, led by former Finance Secretary Rameshore Khanal. The commission suggested that the government take necessary legal measures to restrict IPOs by hydropower companies until they become operational.

The recommendation was later included in an economic reform action plan prepared by a committee headed by Chudamani Paudel, Secretary at the Office of the Prime Minister and Council of Ministers. The government formed the committee to prepare an action plan to implement the recommendations made by the Khanal-led commission.

The action plan states that the provision to prevent hydropower companies from going public before they start power generation could be implemented within two years.

Sebon has begun discussions on implementing the recommendation in line with the action plan prepared by the Paudel-led committee. Although no official decision on the timeline or the mechanism for implementing the rule has been made so far, the Sebon official said that consultations are ongoing with the Ministry of Finance and the Ministry of Energy, Water Resources, and Irrigation to explore feasible approaches.

Currently, hydropower companies that have completed at least 65 percent of their physical construction are eligible to issue IPOs. This existing provision has faced criticism in recent years, with concerns that it exposes the public to financial risk if the projects encounter delays or fail to complete construction.

At present, 36 hydropower companies have submitted applications to Sebon, seeking approval to issue over 174.8m shares worth approximately Rs 17.89bn. The IPO applications of these companies will be processed under the existing provision until a new decision is made.

Meanwhile, the Independent Power Producers’ Association of Nepal (IPPAN) has raised concerns that enforcing such a restriction could delay project implementation. IPPAN argues that allowing early IPO issuance enables developers to mobilize funds during the construction phase, which is often the most capital-intensive period for hydropower development.

The Nepal Stock Exchange (NEPSE) gained 27.29 points to close at 2,657.19 points on Sunday.

Similarly, the sensitive index surged by 3.04 points to close at 452. 31 points.

A total of 17,501,802-unit shares of 324 companies were traded for Rs 8. 68 billion.

Meanwhile, Butwal Power Company Limited (BPCL), Makar Jitumaya Suri Hydropower Limited (MAKAR), Pure Energy Limited (PURE), Dolti Power Company Limited (DOLTI) and Bindhyabasini Hydropower Development Company Limited (BHDC) were the top gainers today, with their price surging by 9. 99 percent. Likewise, Saptakoshi Development Bank Ltd (SAPDBL) was the top loser as its price fell by 8.61 percent.

At the end of the day, total market capitalization stood at Rs 4. 41 trillion.

The Karnali provincial government has announced plans to reduce the use of chemical pesticides and eventually declare the province pesticide-free. However, a lack of concrete action has hindered progress toward achieving this goal.

In the initial phase, the government planned to establish pesticide testing laboratories at key entry points to Karnali and inspect fruits and vegetables for pesticide residues. Accordingly, laboratories were set up in Harre (Surkhet) and Kapurkot (Salyan)—the main gateways to the province. But these facilities remain non-operational.

To prevent the entry of pesticide-laden produce from outside Karnali, the government intended to conduct tests at these checkpoints and block contaminated goods. However, the testing process has not commenced. The laboratories are in a state of disrepair, lacking essential equipment, manpower, and budget—despite millions of rupees being spent on their construction.

For instance, a pesticide testing laboratory building was constructed six years ago at Harre, Surkhet, costing around Rs 7m. Yet, it remains unused due to the absence of skilled personnel and equipment. According to the Integrated Agricultural Laboratory of Karnali Province, the delay is mainly due to budget constraints and a shortage of technical staff.

Chitra Bahadur Rokaya, a senior agricultural economist at the Integrated Agricultural Laboratory, said, “The laboratory lacks essential equipment, and due to the absence of budget and manpower, the building itself has started to deteriorate.” He added that repeated requests to the ministry for the required resources have gone unanswered. Although six staff members were requested for the labs in Surkhet and Kapurkot, they have not been deployed.

The campaign to make Karnali an organic province began in 2017, when the first meeting of the provincial Council of Ministers made it a priority. In 2019, the second meeting of the Karnali Provincial Coordination Council decided to make the province organic within two years. To support this initiative, an agriculture-related bill was passed in 2018 during the first term of the Provincial Assembly.

Despite these policy decisions, the use of chemical pesticides continues to rise in Karnali. A premature declaration of becoming an organic province, without adequate preparation, staffing, or viable alternatives to chemical fertilizers and pesticides, has hampered implementation.

To address the issue, the provincial government has classified 718 wards based on pesticide usage. Of these, 195 are labeled as green zones (fully organic), 446 as yellow zones (moderate pesticide use), 55 as red zones (high pesticide use), 59 as green-first stage zones, and two wards as a mix of red and green. The government aims to gradually transition all wards to fully organic status.

Mukunda Bahadur Malla of Mallarani Rural Municipality-5, Sarangkot, has been cultivating mushrooms commercially, producing about 1,000 kilograms per month. He sells them in the market through his employees.

In addition to market sales, Malla receives a subsidy of Rs 50 per kilogram when he delivers mushrooms to the collection center operated by Mallarani Rural Municipality. The municipality provides production-based subsidies to farmers to support agricultural marketing. In the last quarter alone, Malla sold 702.5 kilograms of mushrooms through the collection center and received a subsidy of Rs 35,125.

Ramesh Kumar Shrestha, vice-chairperson of Mallarani Rural Municipality, said that the production-based subsidy is part of their broader policy to commercialize agriculture and promote self-employment in line with local needs and contexts.

“Business and jobs may not be available to everyone, but we have introduced this policy to make agriculture more commercial and self-sustaining,” he said. He expressed confidence that the initiative will help farmers become more competitive and lead the municipality toward self-reliance.

The municipality provides subsidies based on product type: Rs 10 per kg for vegetables, Rs 15 for pulses, Rs 15 for spices, Rs 15 for eggs, Rs 50 for ghee, and Rs 50 for mushrooms. The subsidy guidelines also allow for additional products to be included at any time.

By the third quarter of the current fiscal year, Mallarani Rural Municipality had distributed approximately Rs 350,000 in production-based subsidies. According to Moti Acharya, head of the agriculture branch, Rs 52,900 was distributed in the first quarter, Rs 89,000 in the second, and Rs 197,687 in the third.

Satyamohan Rana of Mallarani Rural Municipality-2, Kharindanda, said the new subsidy model has motivated farmers more than previous distribution-based systems. “The motivation to produce more has awakened in farmers,” he said. “There is competition among them to increase output.”

Meanwhile, Pyuthan Municipality has been providing subsidies on milk at Rs 10 per liter, said Giriraj Poudel, chief officer of the municipality’s Animal Service Branch. So far this fiscal year, farmers have collected and sold 71,020 liters of milk, earning a total subsidy of Rs 710,200. A total of 82 individuals have benefited from the program, with funds directly deposited into their bank accounts.

Since Pyuthan is a market-oriented urban area, the collected milk is delivered to nearby market hubs, said Bhoj Bahadur Basnet, chairperson of the Shivalaya Milk Collection Cooperative, Khaira.