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The Nepal Electricity Authority (NEA) has prioritized the construction of pumped storage hydropower projects to manage daily electricity demand fluctuations and enhance the country’s energy security. The NEA’s Project Development Department has identified 156 potential pumped storage projects nationwide.

Of these, 33 projects with a combined capacity of 42,000 MW have been shortlisted and categorized. A feasibility study is underway for a 332 MW pumped storage project in Syarphu Lake, Rukum (West), after obtaining a survey permit. Additionally, the 670 MW Dudhkoshi Reservoir Hydropower Project is studying a 200 MW pumped storage component.

A feasibility study is also being conducted for the 1,596 MW Hulingtar-Dukim Pumped Storage Project in Dhading’s Benighat Rorang and Chitwan’s Ichhakamana rural municipalities. Located near Kathmandu, this project benefits from access to roads, transmission lines, and other necessary infrastructure. The NEA’s Project Development Department is currently conducting a Detailed Engineering Study (DEX) for the project.

The project involves constructing two reservoirs by building 45-meter and 103-meter-high dams on the Hugdi (upper) and Mowa (lower) rivers, respectively. The power plant will be situated on the Mowa River. Electricity will be generated using water stored in the Hugdi reservoir, and after generation, the water will be pumped back from the Mowa reservoir to Hugdi. The project is designed to operate at full capacity for six hours during peak demand periods.

Pumped storage projects store water in an upstream reservoir during off-peak hours when energy prices are low. This stored water is later used to generate electricity during peak hours when demand and prices are higher. These projects play a crucial role in power system stability, peak demand management, and surplus energy utilization. They also enable Nepal to generate and consume electricity efficiently while exporting surplus energy to India at premium rates during peak periods.

On Saturday, NEA Executive Director Kulman Ghising, Project Development Director Nasibman Pradhan, and other officials inspected the Hulingtar-Dukim project site. Ghising highlighted the project’s advantages over others due to its strategic location, favorable environmental and social conditions, accessibility, infrastructure availability, and proximity to transmission lines and power demand centers.

Ghising stated that the project would initially be developed with a capacity of 510 MW in the first phase, eventually expanding to full capacity. “The process of obtaining a survey permit will be prioritized to accelerate construction,” he said. The project is expected to generate approximately 3.36bn units of electricity annually, with an estimated cost of $587,000 per megawatt.

Prime Minister KP Sharma Oli has stated that there are no immediate plans for his visit to Lipulekh, Kalapani, and Limpiyadhura. During a question-answer session in Parliament on Thursday, Rastriya Prajatantra Party (RPP) lawmaker Buddhi Man Tamang asked the Prime Minister when he would visit the disputed territories and whether any plans had been made.

In response, PM Oli said, “There is no immediate plan, but a visit could happen in the future.” He also counter-questioned MP Tamang, asking if he had made any plans to visit the areas himself.

PM Oli revealed that he has been trying to contact Maoist Center Chairperson Pushpa Kamal Dahal regarding unresolved issues of the peace process. He stated that while the government is committed to finalizing appointments for the Truth and Reconciliation Commission and the Commission for the Investigation of Enforced Disappearances, Prachanda has been unavailable due to health reasons. “As soon as we establish contact, the remaining tasks of the peace process will move forward,” he said.

PM Oli also addressed the operation of Gautam Buddha International Airport, stating that efforts are underway to bring it to full capacity. He mentioned that the government has been working with relevant agencies to develop a concrete action plan. He highlighted incentives such as reduced passenger service fees, ground handling, landing, parking, and navigation charges to attract airlines.

Currently, Al Jazeera, FlyDubai, AirAsia, and Nepal Airlines operate international flights from the airport. Additionally, the government has initiated labor permit services from the Butwal Labor and Employment Office and is expanding immigration and banking services at the airport.

The government plans to provide startup loans to at least 500 entrepreneurs this year, PM Oli announced. He stated that the selection process for startup loans at concessional interest rates is in its final stage. The initiative aims to foster innovation, encourage entrepreneurship, and create employment opportunities within Nepal.

He emphasized that while Nepali youths have the freedom to seek employment and education abroad, the government is actively working to create job opportunities at home. “The narrative that nothing can be done in Nepal is misleading. We are taking steps to build an industrial-friendly environment to encourage domestic and foreign investment, boost productivity, and reduce trade deficits,” he added.

PM Oli expressed concern over the increasing number of Nepalis leaving the country, particularly those taking irregular migration routes to reach the United States. “Some degree of migration is understandable, but leaving farmlands barren, taking loans, and opting for illegal routes to reach the US, only to face deportation, is not ideal,” he said. He attributed the issue to a lack of awareness and stressed the need to educate the youth about sustainable opportunities in Nepal.

PM Oli informed Parliament that the government has allocated Rs 50m for road construction in the remote village of Changru in Darchula. “The village has historically lacked proper road access. In response to local demands, we have started constructing a horse trail to connect it to the district headquarters,” he said. Additionally, he mentioned that roads are being developed in all district headquarters of Karnali Province with the support of the Nepal Army.

The upcoming Federal Civil Service Act will address the reservation demands of Tharu, Muslim, and other marginalized communities, PM Oli assured lawmakers. In response to questions from lawmaker Bina Kumari Thanet, he said that the proposed legislation, currently under discussion in Parliament’s State Affairs Committee, includes provisions for reserving quotas for Tharu and indigenous communities in civil service positions. He also reiterated the government’s commitment to inclusive representation in public appointments.

Meanwhile, Janata Samajbadi Party (JSP) leader Prabhu Sah boycotted the PM’s question-answer session in Parliament, accusing Oli of failing to address his previous questions. Before walking out, Sah urged that the session be removed from the agenda, claiming it had lost relevance. “By not responding to my queries, the Prime Minister has disrespected the entire Parliament and the Speaker’s authority,” he said.

The government has initiated preparations to prioritize programs in the upcoming fiscal year's budget aimed at addressing the challenges that Nepal could face following its graduation from Least Developed Country (LDC) status in 2026.

Concerns have been raised that Nepal’s current benefits in the global market may diminish after graduation. Post-graduation, Nepal will lose certain trade-related intellectual property advantages which could negatively affect Nepali products. However, government officials believe that proactive policy and diplomatic efforts could help mitigate these risks and maintain existing benefits.

In 2021, the UN General Assembly approved Nepal’s transition from an LDC to a developing country, based on the recommendation of the United Nations Committee for Development Policy. 

The Ministry of Finance has been engaging in discussions with relevant agencies to integrate the roadmap for Nepal’s graduation into the upcoming fiscal year’s budget. Intensive consultations have taken place between the National Planning Commission, the Ministry of Industry, Commerce and Supplies, and the Ministry of Finance on the issue.

Officials insist that there won’t be much impact from waiver of facilities post-graduation as it would not affect Nepal’s exports to India, its largest trading partner, which accounts for two-thirds of the country’s total trade. As a close neighbor, Nepal enjoys special concessions under bilateral agreements, which will remain intact even after graduation.

Nepal’s exports to China, where it enjoys duty-free access for several products, will also remain unaffected. Although current exports to China are minimal, the northern neighbor holds significant potential as a future export market for Nepal.

However, exports to other markets, such as the United States, the European Union (EU) and the United Kingdom—where Nepal currently benefits from LDC privileges—could face problems, according to finance ministry officials. They added that grant assistance could also diminish gradually post-graduation.

The finance ministry has stated that preparations are already underway to formulate new policies to address these issues. The goal is to align the graduation process with the budget’s objectives for sustainable development, a finance ministry official said.

During recent discussions, officials underlined the need to develop policies, plans and programs that will ensure the upcoming fiscal year 2025-26 is both smooth and sustainable and aligns with Nepal’s post-graduation strategies.

The finance ministry plans to support sustainable economic growth and job creation through fiscal policy, stable monetary policy and the effective operation of development assistance. Additionally, trade analysis and enhancing capacity and financial access for high-return projects are also among the ministry’s key priorities.

The criteria for LDC graduation include per capita gross national income, human asset index and economic and environmental vulnerability indicators, among others.

Officials say Nepal is expected to benefit from strengthened access to development and business investments, new trade and economic partnerships, sustainable development, enhanced national image, and increased credibility, among others, post-graduation.

It has been nearly two weeks since former King Gyanendra Shah re-emerged into the spotlight of national politics. His resurgence has sparked a wave of criticism and aggressive rhetoric from leaders of major political parties, including former prime ministers, who have resorted to harsh and uncivil language to discredit him. Meanwhile, some politicians have taken to the streets to counter potential royalist protests in the Kathmandu Valley.

On March 9, approximately 13,000 people escorted Shah from the airport to his private residence, marking a significant show of support. Since then, two distinct narratives have emerged in national politics. First, the former king appears to be attempting to establish a unified command to launch Kathmandu-centric protests, appointing Nava Raj Subedi, a veteran of the Panchayat era, to lead the campaign. However, despite Subedi’s broad acceptance, pro-monarchy forces have refused to rally under his leadership. Subedi, previously associated with the Rastriya Prajatantra Party, resigned from his position to take on this new role.

Shah’s immediate challenge is to unite all monarchy supporters under a single banner. Encouraged by the March 9 turnout, he is preparing to tour other parts of the country to garner further support for the monarchy. However, there are indications that the government may restrict his activities if he becomes more politically active, potentially infringing on his constitutional right to free movement.

On the other hand, major political parties are mobilizing their cadres to demonstrate their strength in the streets. The CPN-UML has been engaged in serious deliberations about Gyanendra’s plans to return to power, with senior leaders discussing the potential backing of royalist forces by external actors. The CPN (Maoist Center) and other fringe parties are also preparing to counter royalist movements, signaling that Kathmandu is likely to witness increased protests in the coming days. Nepal’s highly politicized civil society has aligned with mainstream political parties to oppose any potential revival of the monarchy.

Amidst this political tension, pro-monarchy groups have spread misinformation suggesting that the Nepali Army supports the restoration of the monarchy. In response, the army has reaffirmed its commitment to safeguarding Nepal’s independence, sovereignty, territorial integrity, and national unity in accordance with the constitution. The army’s statement comes amid growing calls from royalist factions for the military to play a role in reinstating the monarchy.

There are also murmurs within political and diplomatic circles that certain forces are fueling pro-monarchy protests not to restore the king but to destabilize Prime Minister KP Sharma Oli’s government. Analysts suggest that increased street protests could pave the way for a national unity government, potentially forcing Oli to step down. Reports indicate that Nepali Congress (NC) and Maoist leaders are already discussing the formation of such a government, arguing that only a strong administration can preserve the current political system. Maoist Chairman Pushpa Kamal Dahal is reportedly working to remove Oli from power.

Meanwhile, the coalition government formed by the NC and UML had pledged to amend the constitution, but progress has stalled. However, the NC has taken some steps in this direction. The party’s Professional and Intellectual Department conducted consultations across all seven provinces on constitutional amendments and submitted its report to Party President Sher Bahadur Deuba. The report recommends declaring Nepal a Hindu state in the constitution’s preamble, a move that contradicts the party’s current stance. While support for a Hindu state is growing within the party, there is no significant backing for the monarchy. The report also suggests reducing administrative costs associated with the federal structure, ensuring 50 percent representation of women in state mechanisms, and prioritizing geographical factors over population in electoral constituency delimitation, including reducing the number of constituencies.

In international developments, Foreign Minister Arzu Rana Deuba visited New Delhi to participate in the Raisina Dialogue, where she held bilateral talks with foreign ministers from several countries, including India’s External Affairs Minister S. Jaishankar. Nepal is preparing to invite Indian Prime Minister Narendra Modi to the Sagarmatha Dialogue, and Deuba was expected to extend the invitation during her visit. The Nepali government is focused on attracting high-level dignitaries from both India and China.

In another development, the United States has reaffirmed its commitment to strengthening its partnership with Nepal. A State Department spokesperson stated, “While programs that do not align with American interests have been terminated, the United States remains committed to strengthening its partnership with the Government of Nepal.” The spokesperson emphasized that the US is dedicated to supporting Nepal’s sovereignty by bolstering democratic resilience and promoting economic opportunities. However, negotiations between Nepal and the US have yet to resume following the withdrawal of US support. Additionally, Nepal’s embassy in Washington remains vacant, as Ambassador Lok Darshan Regmi has yet to assume office five months after his appointment. Experts suggest that due to Nepal’s strategic geopolitical location, the Trump administration is likely to continue its aid to counterbalance the influence of India and China.

On the economic front, Nepal’s public debt has increased by 9.93 percent to Rs 2,676.03bn over the first eight months of the current fiscal year, according to the Public Debt Management Office (PDMO). This represents an increase of Rs 241.93bn since mid-July 2023.

There is some positive news as well. Policy reforms introduced by the government through ordinances are beginning to yield results. Nepal recorded its highest foreign investment commitments in the current fiscal year during the eighth month (mid-February to mid-March), with the Department of Industry approving Rs 17.79bn for 40 projects. These projects are expected to create 833 new jobs, bringing the total foreign investment commitments for the fiscal year to Rs 44.66bn across 427 projects. A recent study by the department identified policy shortcomings as the primary obstacle to higher foreign direct investment (FDI) inflows, prompting the government to address these issues through recent ordinances.

In Nepal-China relations, Sichuan Airlines has launched its first international flight to Pokhara International Airport under regular commercial operations. Since its inauguration in January 2023, the airport has struggled financially, and the weekly flights by Sichuan Airlines are expected to provide some relief. Additionally, a business delegation from Sichuan has reached agreements with Pokhara, potentially fostering further economic collaboration.