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The Bagmati river is revered as a sacred lifeline, deified for its purifying waters and deeply entrenched cultural and religious significance. It serves as a ritual site for cremation and spiritual cleansing in the pursuit of salvation, embodying the belief that its sacred flow can absolve karma and unite the soul with the divine, forming a transcendent cycle where birth, death and eternity converge.

Flowing through the heart of Nepal’s Kathmandu valley, the Bagmati is more than just a body of water, it’s a sacred thread woven into the spiritual, cultural and ecological fabric of the nation. Revered in both Hindu and Buddhist traditions, it has for centuries been a symbol of civilization, sanctity and continuity, a giver of life and a pathway to salvation.
Yet today, the same river that once nourished an entire valley has been reduced to a toxic sewer. Its waters are blackened by sewage, choked with industrial waste and biohazards, and fouled by an unbearable stench. In its putrid current lies a haunting question: Can the Bagmati still be called holy or has it become a public health hazard?

Sacred shrine to sewer stream

The Bagmati river originates from Bagdwar in the Shivapuri Hills of the Mahabharat range at an elevation of 2,690 meters, where it once flowed crystal clear, pure, life-sustaining and revered. It travels southward through the Kathmandu valley (15 percent basin area), descending into the Tarai plains through eight districts before crossing into India to merge with the Ganges. For Hindus, the Bagmati is more than a river, it’s the earthly embodiment of the divine, intimately linked to Lord Shiva at the Pashupatinath Temple, a UNESCO World Heritage since 1979, where its waters are believed to carry souls toward moksha (liberation).
The river, steeped in legend and divine embodiment. According to mythology, the Bagmati began flowing when Bodhisattva Manjushree cleaved the hills surrounding a primordial lake, draining it and making way for human settlement. This act gave birth to the ancient city of Manjupattan on its banks. The Bagmati has served as a spiritual and cultural lifeline shaping early Kathmandu and marking historical trade routes at Teku Dovan and cremation sites such as Kalmochan and Pachali Ghat preserving 3,000 years of ritual heritage and royal legacy.
Today, however, the Bagmati paints a very different picture. Its once-pristine waters are choked with industrial effluents, raw sewage and biohazardous waste, primarily via anthropogenic pressures. A 2017 UN report estimated that over 95 per cent of wastewater in the valley is discharged untreated into natural water bodies much of it ending up in the Bagmati. This unchecked pollution now poses a grave hazard to both environmental and public health hindering water reuse and ecological sustainability.
The riverbanks, once adorned with temples and terraced greenery, are now strewn with plastic bags, decaying waste and the remnants of discarded ritual offerings. Despite the presence of existing and rehabilitated wastewater treatment plants, their capacity remains woefully inadequate to handle the overwhelming waste burden. Key degradation contributors are unmanaged urbanization, indiscriminate waste disposal and the direct discharge of domestic and industrial sewage further exacerbated by poor planning, fragmented governance and the rapidly growing valley population, now nearing 3m. Unlike artificial canals, the Bagmati is a natural river, whose sandy riverbed has been stripped bare by decades of toxic dumping. Though efforts to clean and preserve the river are urgent, the prospect of restoring it to its former sanctity is uncertain. In many respects, the damage may already be irreversible.

Health hazard—a nightmare

The Bagmati river now embodies a profound ecological and public health crisis. Scientific studies have revealed alarming levels of microbial and chemical contamination. A 2019 study published in the journal ‘water’ identified 709 bacterial genera in the river, including 18 potentially pathogenic such as Arcobacter, Acinetobacter and Prevotella. Thakali et al (2020) further detected reservoirs of antibiotic resistance genes (ARGs), transformed the Bagmati as a hotspot for antimicrobial resistance (AMR). Shrestha et al. (2023) reported that 80 per cent of river microbial isolates possessed multidrug resistance, while Ghimire et al. (JNHRC 2023) confirmed 241 of 615 coliform samples were resistant to common antibiotics.
Beyond microbial threats, a 2015 study estimated that 70,000 plastic micro- and macro-fragments pass through the river daily. Recent analyses have detected heavy metals like lead and mercury, and carcinogenic compounds capable of causing neurological damage, developmental disorders and organ failure. Despite Nepal’s abundant freshwater sources, cities like Kathmandu suffer from water scarcity. The World Bank 2016 reported 19.8 deaths per 100,000 in Nepal are linked to unsafe sanitation, hygiene and waterborne diseases. The environmental collapse is stark: fish stocks have vanished, aquatic birds are gone, and sludge, algal blooms and chemical foam dominate the landscape. Its decline is a warning not only for Nepal but for the world, a reminder that environmental neglect has irreversible consequences.

Revival possible?

Since 2013, the weekly Bagmati Clean-Up Campaign has mobilized volunteers and raised public awareness, but these efforts remain inadequate against the overwhelming scale of pollution and ecological decline. While new wastewater treatment plants are under construction, the pace of infrastructure development continues to lag behind escalating contamination levels. Legal frameworks to penalize polluters do exist, yet enforcement is weak, and often symbolic. What is urgently needed is a strict implementation of environmental laws, holding industries and hospitals accountable through regular audits and real-time monitoring. Solutions like bioremediation with pollutant-degrading microbes, installation of plastic traps at drainage outlets and widespread adoption of household waste segregation must be prioritized. Equally vital is mobilizing spiritual leadership: religious figures can champion environmental stewardship as a sacred duty and promote eco-conscious rituals.
The Bagmati mirrors Nepal’s soul, sacred, yet deeply wounded. Its revival lies not in miracles, but in unified action, scientific innovation and spiritual responsibility. 

A nation that kills its rivers kills its own future. The Bagmati’s fate rests in our hands.

Nepal is stuck in a dangerous cycle. Corruption is increasing, and the gap between the rich and the poor is getting wider every day. Many people have lost trust in the government because they feel ignored, cheated and left behind. Even though Nepal has become a democracy and given more power to local governments, real control still lies with a small group of wealthy and powerful people. Most citizens, especially the poor and those living in rural areas, continue to struggle just to survive.

Corruption is present at every level—national, provincial, and local. Money meant for important services like schools, hospitals and roads often disappears due to theft, misuse or waste. Politicians and officials make big promises, but many development projects are only started to make money for themselves and their friends. Budgets are often made larger than needed, so that extra money can be secretly siphoned off. Contracts for construction are not always given to the most qualified companies, but to those with political connections. This leads to weak, unsafe buildings or projects that are never finished.

Even when work begins, a large amount of money is lost before it reaches the people. It is believed that only about 35 percent of the capital budget is used properly. Corrupt politicians, dishonest contractors and some government employees devour the rest. Because of this, roads break apart within months, schools lack basic furniture and qualified teachers, and hospitals do not have enough doctors, medicine or even potable water.

This situation hurts poor people the most. Many laborers working on these projects are paid very low wages—and sometimes, they are not paid at all. Their problems are ignored, and they have no real way to raise their demands or seek justice. Meanwhile, rich people keep gaining more power by using their money to influence politics and business. This unfair system keeps poor people stuck in poverty and gives the rich even more control over the country’s future.

Another big problem is how government jobs are given. Instead of hiring people based on education, skills or experience, jobs often go to relatives, friends or political supporters. This means that many important offices are run by people who are not qualified for the jobs at hand. As a result, government services become slow, unfair and ineffective. Honest and capable people are often pushed aside, which creates frustration among the youth. Many young people lose hope in the system and choose to leave the country to find better opportunities abroad. This “brain drain” is a big loss for Nepal, as it loses skilled and educated workers, who could have helped develop the country.

Even the institutions that are supposed to fight corruption are failing. Organizations like the anti-corruption commission and other watchdogs are often under the grip of powerful leaders. They are not truly independent, and they rarely investigate or punish those in high positions. When corrupt leaders go unpunished, it sends a message that stealing public money is acceptable. This creates a culture where corruption becomes normal and expected.

The seriousness of this problem can be seen in the numbers. According to OXFAM, Nepal’s Gini coefficient—which measures income inequality—rose from 0.49 in 2010-11 to 0.58 in 2019. This shows that the gap between the rich and the poor is growing quickly. Another number, the Palma Ratio, shows that the top 10 percent of the population earns three times more income than the bottom 40 percent. This level of inequality is dangerous for any country.

Inequality is not just about income. It also affects access to good education, healthcare, housing, justice and job opportunities. Poor families cannot afford to send their children to private schools or pay for treatment at private hospitals. The legal system is slow and expensive, and poor people often cannot afford lawyers or do not have the connections needed to get justice. Over time, this creates anger, hopelessness and frustration, especially among young people, who feel their future has been stolen.

When people believe that the system is unfair and corrupt, they stop trusting democracy. They stop voting, stop getting involved and stop believing that change is possible. This weakens society as a whole.

Corruption also hurts Nepal’s economy. Investors, both local and foreign, are unwilling to put their money into a country where bribes are expected and laws are not enforced. Small businesses—which create most of the jobs—cannot survive if they are constantly blocked through unfair rules, heavy taxes or competition from companies that enjoy political protection. As a result, unemployment increases, and more and more young people leave the country to find work abroad.

If this situation continues, Nepal is most likely to face serious problems in the future. Poverty may rise, social unrest could grow and public services may collapse. Protests and instability could become more common, and more people could lose hope in the idea of a better future.

Solving this problem is not easy. Passing new laws alone is not enough. Real change needs to happen in how the system works and how leaders think. Government offices must be honest and open about how they spend money. Public jobs should be given to people based on their skills, not their political connections. More importantly, citizens need to be able to ask questions, demand answers and take part in decision-making.

The media, civil society and youth movements can play an important role in the fight against corruption. Educating young people about honesty, fairness and responsibility can help build a new generation that refuses to accept corruption as normal. Technology can also help by making government systems digital and easy to track, so that money is not stolen as easily.

In conclusion, corruption in Nepal is not just one problem. It is the root cause of many other problems, including poverty, poor public services, slow development and a weak democracy. If we don’t take it seriously, the rich will keep getting richer, the poor will suffer more and Nepal will fall even further behind. The country needs honest leaders, strong institutions and active citizens who work together to build a fairer and more hopeful future.

Europe Day is a powerful reminder of the day, 75 years ago, when Europe chose cooperation over conflict. In the aftermath of a war, we chose peace. And that choice became the foundation of the European Union.

Today, more than ever, that choice continues to guide us. In a world full of uncertainties, people across the globe are suffering because of climate change, conflict and inequality. The need for a just and lasting peace in Ukraine has not diminished. Conflict in the Mideast continues to bring misery to millions. Closer to us, an increasingly hostile climate threatens lives and livelihoods.

There are currently more live conflicts than at any time since World War II. Despite, and perhaps because of these conflicts, Europe Day should inspire us today to believe in and work for peace and unity.

The European Union remains a strong voice for peace, and we are proud to call Nepal a trusted and valued partner in that journey. Together with our member-states, under the Team Europe approach, we stand alongside Nepal in its efforts to pursue the transitional justice process in the spirit of reconciliation and permanent peace. As a trustworthy friend, we also stand with Nepal in its efforts to avert climate crises and respond to natural disasters.

In its challenging quest for prosperity, Nepal can also count on the EU. Nepal’s graduation from Least Developed Country status in 2026 means it needs to attract investment to foster economic growth. This is not an easy task when migration has become the path of choice for so many Nepali youth. But a solid commitment to improving the investment climate is crucial for realizing Nepal’s considerable economic potential and creating the business and employment opportunities young people need to build the future Nepal.

The European Union is supporting Nepal’s prosperity agenda through its “Global Gateway” initiative, together with the European Union member-states and European Development Finance Institutions. Global Gateway can support Nepal’s progress and narrow the investment gap through smart, clean and secure investments in quality infrastructure and connectivity.

In a rapidly changing, increasingly fragmented world, international cooperation has turned into global competition. The EU also needs to become more strategic and resilient. But we stand firm on the universal values we have built together with the UN since 1945, and on our commitment to multilateralism. As global challenges grow, so does our determination to remain a reliable, consistent, and principled partner. So tonight, as we celebrate Europe Day here in Nepal, let us also celebrate what connects us. The friendship between our peoples. The commitment to a more peaceful and just world. The belief—borne out of our own experiences—that cooperation can overcome even the toughest challenges.

The author is the EU Ambassador to Nepal

The steel industry is one of the largest producers of greenhouse gases and is responsible for nearly 7-9 percent of global carbon dioxide (CO₂) emissions, primarily due to its extensive application of fossil fuels like coal in conventional blast furnaces. As global warming intensifies, economies worldwide are confronted with the necessity to decarbonize and align with international climate regulations, for instance, negotiations in COP 26 conference to limit the rise in the global temperature to 1.5 degrees Celsius. Green steel has thus emerged as a revolutionary solution for industrial decarbonization, offering a cleaner option to conventional steel manufacturing. Unlike traditional steel, which is produced using coal, green steel is produced using processes that avoid or minimize carbon emissions by utilizing renewable energy sources such as green hydrogen powered by clean electricity. By investing in green hydrogen production, Nepal can be a front-runner in South Asia's clean energy transition, reducing its dependence on fossil fuel imports and enabling a circular economy.

Conventional vs green steel

Over the last two fiscal years, Nepal’s coal imports have risen to meet growing industrial demand, led by steel production. Coal imports during FY 2023-24 totaled about 1.17m tons, from 1.09m in FY 2022-23. From an environmental perspective, 2.83m tons of carbon dioxide was emitted by the coal imports in FY 2023-24. Moreover, conventional steelmaking is a significant source of greenhouse gas emissions—releasing up to 1.8 to 2.9 tons of CO₂ per tonne of steel by employing the conventional blast furnace–basic oxygen furnace (BF-BOF) route. At the same time, electric arc furnace steel (to which the Nepali industry is increasingly shifting) yields around 0.6 tons of CO₂ per ton, especially using scrap or sponge iron. Green steel, manufactured from green hydrogen as a reducing agent rather than coal, is almost carbon neutral. It is reported that around 50 kg of hydrogen is required to produce 1 tonne of steel. Nonetheless, green steel production is initially very costly due to the high price of green hydrogen and renewable infrastructure. 

Import trends

​Nepal has approximately 83 registered iron and steel industries, with 54 specializing in Thermo-Mechanically Treated (TMT) bar manufacturing. The country’s steel melting capacity has significantly increased over recent years, crossing 2m tonnes per annum. In FY 2023-24, Nepal’s total steel and iron market was estimated to be more than $1.12bn and is expected to increase in the upcoming years. Nepal obtains 80 percent of its necessary raw iron materials from India through imports that include MS billets, steel sheets and MS wire. Steel melting capacities in Nepal have grown beyond 2m tons per year during the last few years. In fiscal year 2023-24, Nepal’s sponge iron imports increased by 55 percent year-on-year, reaching a total of around 800,000 tonnes, from 500,000 tonnes in FY 2022-23. Moreover, the total import of iron and steel for FY 2023-24 was reported to be around 1.8m tonnes, and that for FY 2022-23 was reported to be around 1.6m tonnes, highlighting the importance of steel industries in Nepal. 

Nepal’s iron ore reserves

Nepal is aggressively upgrading its iron ore mining capacity to increase local steel production and reduce reliance on costly imports. Nepal has around 10 major iron ore deposits and several minor occurrences across the country, with a total estimated reserve of approximately 208m tonnes, which is expected to be sufficient to meet the country’s steel demand for the next 100 years. Thosey in Ramechhap district is believed to be the oldest iron and steel ore deposit discovered in Nepal with the mine being established in 1893 at Ekan Phedi which was later relocated to Thosey. 

Some of the most extensive reserves lie in the Jhumlabang deposits of Rukum East and the Dhaubadi reserves in Nawalparasi East. Jhumlabang is the biggest iron ore deposit that contains around 200m tonnes of hematite ore in 100 hectares, and Dhaubadi has around 99m tonnes in the same hectare. Moreover, Dhaubadi Iron Company Limited has sent iron ore samples from the Dhaubadi deposit in Nawalparasi to China for a detailed analysis. 

Preliminary results indicate that producing sponge iron is the most feasible option based on the ore’s composition. Currently, the company is in the process of preparing a detailed project report (DPR) to move forward with commercial production. Other deposits at Thoshe (Ramechhap), Labdi Khola (Tanahun), Jirbang and Chitwan provide more chances to boost national production. To utilize these resources, the government has initiated mining development projects at the Jhumlabang and Dhaubadi sites. Major companies like Jagdamba Steels, Jay Ambe Steel, Narayani Ispat and Sarbottam Steel have contributed to this growth through substantial investments. 

A technological impediment

Nepal faces a severe technological barrier since it needs modern reduction systems based on hydrogen together with advanced electrolyzers to produce green hydrogen for steelmaking. The technologies possess substantial capital requirements along with specialized expertise that Nepal currently does not possess. The steel sector of Nepal depends heavily on blast furnace technology, which requires coal as a reduction agent to operate. 

Moving toward green steel operations demands extensive facility upgrades, which both require enormous funding and take a significant amount of time. The government must provide full-scale policy backing for the transition through green hydrogen production subsidies or tax breaks along with R&D funding and industrial regulatory standards that encourage sustainable practices in the industrial sector. Progress in clean energy and industrial decarbonization will face delays because of insufficient permanent policies. Private investors face challenges securing investments for green steel projects as they are reluctant to fund long-term initiatives that depend on unproven new technologies. 

The path ahead

The potential exists for Nepal to establish itself as a sustainable steel production leader through hydropower resource utilization together with its local iron ore reserves. Nepal can reduce its carbon footprint and establish a circular economy by confronting these barriers, decreasing its need for imported coal and iron ore. 

​According to the white paper, Nepal’s estimated installed hydropower capacity is expected to be 28,500 MW by 2035, while the peak demand only reaches 7,581 MW, leaving a surplus of around 21,000 MW. Without proper planning, more than half of the surplus electricity could go waste, which would create a loss of more than Rs 5trn per year. However, if only 10,000 MW of surplus electricity were used, it could generate 1500 kilo tonnes of green hydrogen annually, which could in turn generate around 30m tonnes of green steel, which is well above the expected steel demands. Moreover, 30m tonnes of green steel could generate a yearly revenue of Rs 22.5trn. Producing 30m tonnes of steel using conventional processes would mean consumption of 23m tonnes of coal and release of more than 50 million tonnes of CO2 in the atmosphere. Hence, by strategically utilizing its surplus hydropower and iron ore, Nepal has a unique opportunity to lead in green steel production, significantly reducing carbon emissions and generating substantial revenue.