Submit your Article

Former Indian Ambassador to Nepal Ranjit Rae has said that the Pancheshwar hydropower project should not be extended under any pretext. Speaking at a discussion program organized by the Nepal Institute for International Cooperation and Engagement, the former ambassador said that there should be no delay in Pancheshwar as the effects of climate change are beginning to be seen in hydropower.

He said that if the project can be completed on time, it will be beneficial in all aspects and the more it is delayed, the more losses will be incurred. Saying that both Nepal and India are at loss if Pancheshwar is not made, former ambassador Rae asked to solve the problem. He argued that the cost of the project has increased due to the delay. Rae says that Nepal and India need to look at hydropower strategically rather than as just a resource.

The dream of Pancheshwar being shown to Nepali people for 67 years still remains undecided. It is said that out of more than 500 disagreements in the Detailed Study Report (DPR) of both countries, only a couple of issues have not been agreed upon. Both countries have not been able to present a common opinion, mainly regarding the utility of water. The work of Pancheshwar is not progressing as both countries seem stuck in their own interests rather than in the bilateral interests of water utilization.

The Central Commission of India identified the Pancheshwar project on the Mahakali river in 1956. In 1978, a joint group of experts from both Nepal and India was formed and it was decided to conduct a detailed field investigation independently.

In 1988, the Pancheshwar Multipurpose Project Office was established under the Ministry of Water Resources. In the previous year, with the financial support of the International Development Commission, on-site exploration work was conducted in Nepali territory.

In 1991, it prepared a report on the Pancheshwar Multipurpose Project, which included the Pancheshwar High Dam and Rupaligad Retention Dam. It is proposed that 6,480 megawatts of rock fill dam with a height of 315 meters in Pancheshwar and 240 megawatts in 83 meters height of re-regulating dam in Rupaligad can be produced, generating a total of 6,720 megawatts of electricity. 

Based on that study, Nepal prepared a detailed project report in 1995. According to the latest information from the Ministry of Energy, the total production capacity of Pancheshwar is about five thousand megawatts.

After the conclusion of the treaty between the Government of Nepal and the Government of India regarding the Mahakali River Sharda Barrage, Tanakpur Barrage and Pancheshwar Project on 12 Feb, 1996, the basis for jointly operating this project with bi-national investment was prepared.

On 24 Nov 2009, it was agreed to form the Pancheshwar Development Authority at the 5th secretary-level meeting of the Nepal-India Joint Water Resources Committee. The meeting also prepared the agenda of the Authority (PDA). The agenda was approved by the Government of Nepal and sent to the Government of India.

The first meeting held in Kathmandu in Oct 2014 approved the statute of the authority. The authority’s meeting held in New Delhi in Nov 2014 declared the Indian government-owned company Wapcos Limited to prepare a joint DPR based on the DPR prepared separately by the two countries. In the year 2016/17, there was a disagreement saying that the joint DPR submitted by Wapcos was against the Mahakali Treaty.

The measures taken by the government to ensure fair prices and smooth availability of essential goods for the upcoming festive season are both timely and commendable. The announcement to open 42 fair price shops from Sept 23 across the country, from Dashain through the Chhath festival, demonstrates a commitment to consumer welfare during a period when demand hits peak and prices become volatile. By leveraging the strengths of three government entities—Salt Trading Corporation, Food Management and Trading Company, and Dairy Development Corporation—the government aims to provide a wide range of essential items at discounted rates. The discounts announced on various products, from rice and lentils to oil and live goats, will undoubtedly provide relief to many households struggling with rising living costs.

While the government has been opening fair price shops ahead of the festive season for the past many years, there has not been any study on the effectiveness of this initiative. Although these shops provide some relief to vulnerable consumers, their impact on overall market prices is limited. The government must complement this initiative with strong market monitoring and regulatory measures to ensure wider market compliance and prevent unscrupulous trading practices. The Industry Ministry’s announcement to conduct 4,000 market inspections is a step in the right direction. The sealing of 100,000 kg of sugar in warehouses sends a strong message to those who might consider hoarding essential goods. These actions, coupled with a pledge to prevent supply chain disruptions and artificial shortages, demonstrate a comprehensive approach of the government toward market regulation. The government's decision to provide a 50 percent customs duty waiver for importing 30,000 tons of sugar is another noteworthy measure. This strategy of increasing supply to stabilize prices could prove effective if implemented efficiently. However, measures must be taken to ensure that these benefits are passed on to consumers and not absorbed by middle-men.

As we approach the festive season, the government’s multi-pronged strategy of opening fair price shops, conducting market monitoring and providing import facilitation is commendable. However, the true test lies in its execution. For example, the price of sugar has climbed as high as Rs 160 per kg during the festive season despite all these initiatives. Strong enforcement, transparent operations and quick response to market fluctuations will be crucial for the success of this initiative. Moreover, while short-term measures like these are necessary, the government should also focus on long-term strategies to boost domestic production of essential goods. This would not only reduce dependency on imports but also ensure stable prices throughout the year.

This week, the Nepali Congress and CPN-UML coalition formed a task force to develop the government’s common minimum program (CMP), a positive step, though albeit delayed. Once the CMP is finalized, it will provide a clear direction for the coalition government, serving as a guiding document for ministers across party lines, many of whom are currently unclear about their priorities. The CMP could also help reduce growing tensions between the NC and UML.

The two parties also agreed to begin discussions with stakeholders on constitutional amendments. Amending the 2015 Constitution, which was promulgated amid violence in the Madhes region, remains a sensitive political issue, drawing both internal and external attention. The Madhes-based parties are also preparing to clarify their stance on the amendments. According to NC General Secretary Gagan Kumar Thapa, one of the CMP’s key elements will be the constitutional amendment, which aims to strengthen federalism, inclusive democracy, and proportional representation.

How the constitution amendment process will unfold in the run up to the 2027 national elections remains uncertain. NC and UML appear to be seeking changes to certain provisions, including the electoral system, which is likely to lead to strong opposition from progressive forces. Managing these issues will be challenging. 

As major parties gear up for constitutional amendments, the royalist Rastriya Prajatantra Party (RPP) is preparing street protests, demanding the restoration of the monarchy and Nepal as a Hindu state. RPP Chairperson Rajendra Lingden also met with former King Gyanendra Shah this week. 

In another story this week, the newly-appointed Chief of Army Staff,  Ashok Raj Sigdel, outlined his priorities, focusing on national security, military diplomacy, internal reforms within the Nepali Army, and addressing delays in major infrastructure projects like the Kathmandu-Tarai Fast-Track.

Also this week, Rastriya Swatantra Party (RSP) Chairperson Rabi Lamichhane, who is under scrutiny for his alleged involvement in a fund embezzlement of a financial cooperative, admitted for the first time that media outlets, including his own Gorkha Media, misused the funds. Lamichhane also faced protests from embezzlement victims in Pokhara. Earlier, the RSP leader and former Home Minister was questioned for several hours by a parliamentary committee investigating his involvement in the cooperative scam. 

It is said Lamichhane has sought protection from Prime Minister KP Sharma Oli against potential legal actions. 

Meanwhile, Nepali Congress leader Dhanraj Gurung has also been implicated in the cooperative scandal. He has expressed his willingness to face a parliamentary inquiry.

This week, NC, UML, and the Maoist party showed a rare unity to challenge Kathmandu Metropolitan City’s decision to extend the no-construction zone along riverbanks by an additional 20 meters. Prime Minister Oli has called for a review of the Supreme Court’s decision, reigniting his ongoing dispute with Kathmandu Mayor Balendra Shah.

CPN (Maoist Center) Chairperson Pushpa Kamal Dahal continued to garner attention this week, as he is on a tour of the country, aiming to strengthen the party’s organizational base. Dahal is under pressure to solidify his party’s position after NC and UML opted not to form a pre-election alliance. He has also cautioned NC and UML against constitutional amendments that could undo “progressive agendas” enshrined in the 2015 Constitution.

Talks about the Nepal-India Eminent Persons’ Group (EPG) report resurfaced in national politics this week, with Prime Minister Oli once again urging Indian Prime Minister Narendra Modi to receive it. Former Prime Minister Baburam Bhattarai also raised the issue. 

Another significant political development this week concerned Deputy Speaker of the House of Representatives Indira Rana Magar, who could face impeachment for allegedly misusing her letterhead to request the US Embassy in Kathmandu to arrange visa interview dates for individuals not associated with her office. The ruling NC and UML are preparing to impeach Rana Magar. Rana Magar’s party, RSP, along with the Maoist Center and CPN (Unified Socialist), are expected to oppose the impeachment effort.

The 79th session of the United Nations General Assembly kicked off in New York this week, with the resolution of conflicts as one of its main priorities. Prime Minister Oli is preparing to attend the assembly, marking his first international trip since assuming office. Oli, who will be accompanied by Minister for Foreign Affairs Arzu Rana Deuba, is expected to lay out Nepal’s position on regional and international issues during his address to the UN. The prime minister is also expected to hold bilateral meetings with various world leaders, including his Indian counterpart Modi, on the margins of the UN meeting.  

Bipul Pokhrel, the president of the Federation of Nepali Journalists (FNJ), resigned this week, just ahead of the federation’s planned elections. The FNJ has long been grappling with internal disputes over membership distribution. Pokhrel’s resignation has added to the conflict and uncertainty within the federation.

Also this week, Deputy Prime Ministers and other ministers signed a performance agreement with Prime Minister KP Sharma Oli outlining key tasks and goals for the current fiscal year. The agreement was signed and exchanged during a program held on Thursday at the Office of the Prime Minister and the Council of Ministers in Singha Durbar. A similar agreement was also signed between the Prime Minister and the Chief Secretary of the Government of Nepal.

The performance agreement aims to support the national vision of ‘Prosperous Nepal, Happy Nepali’ by ensuring timely completion of infrastructure projects and improvements in service delivery. However, while such agreements are routinely signed by new prime ministers, their implementation often falters due to frequent changes in ministers and the transfer of secretaries.

In his first address to the General Staff, newly appointed Chief of Army Staff (CoAS) Ashok Raj Sigdel emphasized the Nepali Army’s crucial role in safeguarding the nation’s sovereignty, unity and territorial integrity. Sigdel outlined his strategic vision with a strong focus on national security, military diplomacy, organizational reforms and the welfare of army personnel.

On Aug 28, President Ramchandra Paudel appointed Sigdel to the position, to be effective from Sept 9. The outgoing Chief of Army Staff, Prabhu Ram Sharma, had been on a month-long leave since Aug 8 as part of his mandatory retirement. Sigdel will serve as CoAS for the next three years.

Sigdel’s address followed the formal ceremony where President Paudel conferred the insignia of the CoAS on Sigdel on Sept 9, marking the official transfer of leadership in the Nepali Army.

Sigdel began by reaffirming the core responsibility of the Nepali Army as enshrined in the Constitution of Nepal—protecting the country’s independence, sovereignty and geographical integrity. He highlighted that national unity remains the most powerful force in tackling the complex challenges Nepal faces, and called for the state’s mechanisms to work in tandem under a shared national security strategy.

Sigdel introduced a ‘Commander-in-Chief Command Guidance’ outlining seven key goals to enhance the army’s operational and strategic effectiveness. These goals prioritize areas such as national security, organizational strengthening, development of operational capabilities, modernizing military information systems, improving training and education, and expanding welfare services.

He stressed the importance of a credible and effective national security strategy, grounded in a ‘Whole of Nation Approach’. This would require the strengthening of national mechanisms to ensure that all state actors—military and civilian alike—develop a common understanding of Nepal’s security and defense needs. Sigdel assured that this approach will be operationalized in due course to fortify the country’s defense apparatus.

One of the central themes of Sigdel’s address was the role of military diplomacy in advancing Nepal’s foreign policy. He emphasized that military diplomacy will be strengthened to support national interests and security, ensuring that the army’s international engagements align closely with the country’s foreign policy objectives. Sigdel’s vision involves deepening military cooperation with Nepal’s international partners, positioning the national army as a key player in regional and global peace and security efforts.

Additionally, Sigdel highlighted the army’s ongoing commitment to national infrastructure projects. The ‘Bunker to Barrack’ program, which seeks to modernize army infrastructure, will continue as a priority, alongside key projects like the Kathmandu-Tarai/Madhes Fast Track. Sigdel emphasized that delays or irregularities in these projects will not be tolerated, reaffirming the army’s dedication to efficient project management.

Sigdel also focused on internal reforms, stressing that organizational discipline and integrity are paramount. He urged army personnel to act in the best interest of the institution, warning that actions undermining mutual trust or compromising the institution for personal gain would not be tolerated. The CoAS reiterated that military discipline and dignity remain the ‘first and last mantra’ of the army.

To ensure the army’s operational readiness, Sigdel announced plans to modernize military training and education, with a focus on practical skills suited to Nepal’s geography and strategic needs. This includes timely revisions of military training programs to enhance both tactical and leadership skills.

Sigdel unveiled several welfare initiatives aimed at improving the lives of army personnel and their families. The amount of scholarships provided to the children of Nepali Army personnel will be increased to Rs 25,000 annually for those studying from class 4 to 12. Additionally, the welfare pension for widows receiving family pensions will see an increase of Rs 500 per month.

Recognizing the Nepali Army’s vital role in disaster management, Sigdel stressed that the army’s disaster response capacity will be expanded to mitigate the impacts of natural calamities. He called for heightened preparedness, ensuring the army’s quick and effective response during national emergencies.

In a bid to support army personnel after retirement, Sigdel announced plans to expand professional and vocational training programs, in partnership with government agencies, to ensure retired personnel can transition into civilian life with dignity and self-respect.

Sigdel said the Nepali Army will continue its significant contributions to the development of national sports. Sports development will be prioritized by building on the army’s long history of nurturing national athletes, he maintained.

Moreover, to strengthen the relationship between the army and the public, Sigdel outlined a plan to engage in efforts to protect education, health, arts, culture and the environment. This will be done in a way that preserves military dignity while contributing to the nation’s social and cultural fabric.

The new CoAS underscored the need for improved management of peacekeeping operations, ensuring that Nepali soldiers maintain their reputation as disciplined and effective peacekeepers on the global stage. Special attention will be given to the training of peacekeeping forces and the provision of necessary equipment.

In his concluding remarks, Sigdel pledged to improve relations between the army and the media. He emphasized the need for greater harmony between the two to achieve national objectives, ensuring that the public is kept informed about the army’s efforts in protecting national security and contributing to national development.

Know your CoAS

Commander-in-Chief Ashok Raj Sigdel was born on 1 Feb 1967, in Bhairawa of Rupandehi district. He joined the military service in 1986 and, after completing basic officer cadet training, was appointed a Second Lieutenant in 1988. Sigdel has participated in various training, studies and seminars at home and abroad. He completed command and staff training from the Military Command and Staff College, Shivpuri, and higher command and management training from the Nepali Army War College, Nagarkot. Additionally, he has successfully completed the Defense Management Course from India and the National Defense Course (NDC) from China.

Sigdel has participated in peacekeeping missions in Yugoslavia (UNPROFOR), Tajikistan (UNMOT), and Liberia (UNMIL). Throughout his 38-year military career, he has served in several staff, command and teaching roles, including as coordinator of the Nepali Army in the Covid-19 Crisis Management Center (CCMC). Prior to his appointment as CoAS, Sigdel served as Vice CoAS and Assistant CoAS. He holds a master’s degree in strategic studies from Tribhuvan University and the National Defense University, China.

Key priorities

• ‘Commander-in-Chief Command Guidance’ with seven goals, including strengthening national security, improving organizational effectiveness and modernizing military systems
• Enhancing military diplomacy to support Nepal’s foreign policy and align international engagements with national security interests
• ‘Bunker to Barrack’ program and efficient management of key projects like the Kathmandu-Tarai/Madhes Fast Track
• Greater organizational discipline and integrity, with a focus on upholding military dignity and preventing actions that undermine institutional trust
• Increased scholarships for army personnel’s children and higher pensions for widows. Plans to expand disaster management and professional training for retired personnel