Although the government paved the way for under-construction projects that are facing a shortage of explosives to borrow explosives from other projects in the middle of May, the implementation of the barter system is likely to be challenging. A number of construction projects, particularly those developed or contracted to Chinese companies, are facing a shortage of explosives as the southern neighbor has denied the supplies. In its bid to sort out the issue, the government amended the Explosives Rule-1964, making provision that one construction project could borrow explosives from another project--that does not need explosives urgently.

But a supplier of explosives for construction projects in Nepal said that the Indian embassy has been refusing to issue a No Objection Certificate as long as the end user is not confirmed. “The Indian embassy has clearly communicated to us that a No Objection Certificate will not be issued if there is a scope of transferring the explosive to another project,” the supplier said.

Only after receiving the No Objection Certificate, a supplier can receive supplies of explosives from India. India is a traditional supplier of explosives for Nepal’s construction projects. As per the new rule, the explosives can be borrowed to carry out the construction works related to the roads, energy projects and various other development projects that require blasting of explosives. One can borrow the explosive only if it is facing acute shortage and supply cannot be received immediately and Nepal Army is also unable to supply the explosive, the rule says. Kathmandu-Nijgadh Fast Track Project, Tanahu Hydropower Company Hongshi Cement, Huaxin Cement, and Senjen Khola Hydropower are among the projects that faced explosives shortages in recent months. All of them have either Chinese investments or the involvement of the Chinese contractor. Given the chronic shortage of explosives, the government came up with a new rule allowing the borrowing of explosives. In fact, some projects have got supplies of explosives even from China in recent months with India being reluctant to supply the explosives. Earlier, it was reported that Nepal received the supply of explosives from China in April. According to the report, a company named—Tactical Solutions Pvt Ltd had supplied 90 tonnes of explosives from China for the Hongshi Shivam Cement Factory located at Nawalparasi and SinoHydro Corporation, contractor for the Senjen Khola Hydropower Project in Rasuwa district. It later supplied additional explosives brought from China to Huaxin Cement Narayani and Senjen Khola Hydropower too, according to the reports. But suppliers say that taking the delivery of explosives from China is more complicated than bringing them from India because of the long distance and high altitudes involved. But Nepal has been traditionally reliant on India for commercial explosives. Even Sunchari Emulsion Plant, an explosive plant run by Nepal Army in Makwanpur is not operating because of a lack of raw materials which are supplied by Indian entities. As the acute shortage of explosives affected the implementation of key development projects in the country, Nepal has sought ease in the supply of explosives at the highest level. Prime Minister Pushpa Kamal Dahal told the media that he had raised the issue with Indian Prime Minister Narendra Modi regarding the issues asking the latter to ease supply. “I have talked with Prime Minister Modi to ease the supply of explosives required for big infrastructure projects like hydropower and roads,” he said upon his arrival at Tribhuvan International Airport after visiting India.