India endorses MoU to purchase 10,000 MW power from Nepal in ten years

India has endorsed a memorandum of understanding (MoU) to purchase electricity from Nepal.

Under this agreement, India has agreed to import 10,000 megawatts (MW) of electricity from Nepal in the next ten years.

According to Nepal's ambassador to India, Dr Shankar Prasad Sharma, the federal Council of Ministers of India formally endorsed the agreement on the power trade with Nepal and India shared information about this through social media X (twitter).

He said the decision would contribute to accelerating Nepal's economic development and restructuring efforts.

The MoU was initially signed between the two countries during Prime Minister Pushpa Kamal Dahal's latest visit to India (May 31-June 3, 2023) and at the time the Prime Minister termed the moment historic. Energy secretaries from both countries signed and exchanged the document.

Following India's latest decision to endorse the agreement, the energy secretaries from both neighboring countries will participate in a special ceremony to formally resign it.

Joint Secretary at the Ministry of Energy, Hydro Resources and Irrigation and Spokesperson for the Ministry, Madhu Prasad Bhetuwal said they were unofficially informed about the official decision of the Indian government to endorse the agreement and expect to receive an official confirmation regarding the decision.

With the decision, the door to export the electricity produced in the Indian market in an easy and smooth manner has been opened.

Nepal had been urging for power export in the Indian market in short-term, mid-term and long-term. 

The Nepal Electricity Authority (NEA) has been exporting 452 megawatt electricity in the Indian Energy market on a daily basis. 

Nepal and India had signed a power trade agreement in 2014. The Indian Company, Satluj Jal Vidyut Nigam, is constructing a 900-megawatt Arun III hydropower project. Although the Indian company, GandhI Mallikarjun Rao, has been said to construct a 900-megawatt Upper Karnali hydropower project, it has not been started yet.

Similarly, Indian companies have forwarded necessary processes for the construction of different projects including Lower Arun, West Seti and SR-6.

An agreement has been reached between Nepal and India to construct some projects after preparing joint investment.

Nepal has been making preparations to export 40-megawatt electricity in Bangladesh soon.

The private sector has been demanding the government to grant permission for power trade. The proposed new electricity bill has made this arrangement.

The Cabinet meeting held on August 29 had given permission to the Energy Ministry to table the electricity bill in the Federal Parliament.

 

Non-alignment policy is even more relevant today

Russia’s invasion of Ukraine has triggered a debate regarding Nepal's commitment to non-alignment policy. As the world watched, Nepal voted in the United Nations’ proposal that condemned Russia's aggression, while neighboring South Asian countries, including India, chose the path of abstention.

This divergence of stance stirred criticism from foreign policy experts and communist parties, who vehemently posited that Nepal's vote in the UN resolution represented a stark deviation from its enduring non-alignment doctrine. They contended that Nepal, like several regional counterparts, should have maintained a resolute neutral position.

In recent months, a fresh discourse has taken root among foreign policy luminaries and political leaders, probing the question of whether Nepal should relinquish its non-alignment policy in light of the ever-shifting regional and global power dynamics. Yet, some proponents of this shift offer their case without specifying what should supplant the non-alignment policy.

The Non-Aligned Movement (NAM), born in the cauldron of the 1950s and 1960s, had at its heart the notion of eschewing alignment with either of the two prevailing blocs: the democratic realm led by the United States or the communist sphere headed by the Soviet Union. Following the fall of the Berlin Wall, the bipolar world transitioned into a unipolar landscape under US dominion. Currently, there are 120 members that follow the non-alignment policy. 

Nepal has enshrined it in its constitution of 2015. Article 51 of the constitution explicitly mandates Nepal to conduct an independent foreign policy based on the United Nations Charter, non-alignment, Panchasheel principles, international law, and world peace norms. It underscores the overarching imperative of safeguarding Nepal's sovereignty, territorial integrity, independence, and national interests.

Those advocating for abandoning the non-alignment policy often cite India as an example. They argue that India has embraced a multi-alignment doctrine in recent years. India's reduced emphasis on global non-alignment conferences is seen as a testament to this shift. Experts assert that India has deftly carved a path of strategic autonomy and multi-alignment, all while preserving the core tenets of non-alignment.

In the context of the Russia-Ukraine war, India's steadfast neutrality and ongoing engagements with both Russia and the US have underscored the nuanced nature of its foreign policy. Professor of international relations, Khadka KC, contends that even India has not categorically severed ties with non-alignment, hinting that Nepal, in its own way, has been practicing a form of multi-alignment since the 1960s, all while upholding the principles of non-alignment.

It's argued that Nepal actively pursues economic benefits from major global powers, including Russia, and, since 1960, has remained untethered to military alliances. Experts assert that the current non-alignment doctrine does not preclude Nepal from engaging with any nation to further its national interests. However, the unique geography of Nepal necessitates a cautious avoidance of taking sides in global conflicts.

Beyond Nepal's borders, the Global South at large grapples with the intricacies of non-alignment and neutrality, particularly in the wake of the Russia-Ukraine war. Despite fervent lobbying by the US and its allies, many Global South nations have refrained from endorsing US sanctions on Russia. The positions of these smaller nations have triggered consternation, as they effectively curtail the impact of the sanctions on Russia’s economy.

Professor KC staunchly advocates for Nepal's continued adherence to non-alignment, affirming that it's intrinsic to Nepal's foreign policy fabric. He emphasizes that geography and evolving regional and global power dynamics underscore the primacy of Nepal's non-alignment policy.  “Nepal can simultaneously reap economic benefits from major powers while remaining committed to non-alignment,” he says.
Former diplomat Dinesh Bhattarai insists that at the core of Nepal's non-alignment policy lies the art of making independent judgments without tilting toward any side, a principle perfectly aligned with Nepal's unique geographical constraints. He dismisses claims that non-alignment stifles development.

“I have heard the contention that non-alignment policy hinders our development. What I say is geography is an omnipotent factor, and taking sides offers no guaranteed path to rapid progress.” 

Mriendra Bahadur Karki, executive director at the Centre for Nepal and Asian Studies, offers a nuanced perspective. “Nepal should reinvent non-alignment to involve active engagement in global affairs while sidestepping military alliances,” he says.  

Karki also defends Nepal's prudent decision to vote against Russia's invasion of Ukraine, portraying it as an embodiment of active non-alignment.

International relations analyst Gaurab Shumsher Thapa underscores that non-alignment does not entail turning a blind eye to regional or global events. “Instead, it beckons active engagement in world affairs without shackling Nepal to any military blocs.”  Given Nepal's intricate geopolitical milieu, Thapa asserts that the relevance of non-alignment will likely increase rather than dwindle in the country's future.

To date, Nepal remains an ardent advocate of the non-alignment policy. In a recent ministerial meeting of the Non-Aligned Movement Coordinating Bureau, Foreign Minister NP Saud reaffirmed Nepal's unwavering faith in the principle of the Non-Aligned Movement. He stressed the imperative of international cooperation within NAM, the strengthening of south-south collaboration, and the fortification of multilateralism with the United Nations at its nucleus, as a means to surmount contemporary global challenges.

Saud maintained: "As NAM members, we must address the root causes of persistent global problems, such as poverty, conflict, and violence. We must champion enduring peace through dialogue and respect for diversity while accelerating our economic development to attain the 2030 Agenda for Sustainable Development."

Officials from the Ministry of Foreign Affairs, in conversation with ApEx, contend that the ongoing debate on non-alignment falls short of mirroring the contemporary reality. In the face of external forces exerting pressure to enlist Nepal in their ranks, they say the most prudent course for Nepal would be to remain steadfast on its non-alignment commitment. 

They firmly assert that Nepal, in view of its unique position, cannot afford to antagonize any nation by picking sides. Critics of non-alignment, they argue, have yet to furnish a coherent alternative.

Has Nepal duly apprised the world of its new map?

In May, 2020, Nepal’s Parliament unanimously issued a new political map showing Kalapani, Limpiyahura and Lipulekh as Nepali territories. All political parties supported the initiative of the then government under CPN-UML Chairman KP Sharma Oli.

However, it appears that the then government did not follow the due process to make the new map acceptable to the international community, including the neighbors—India and China. The government should have informed the United Nations, Google and other international communities, but it didn’t, in all likelihood. The Department of Survey printed the English version of the map, but it was not circulated to the international community.

Speaking at a program on Sunday, Foreign Minister Narayan Prakash Saud said, “We have not officially communicated with the international community about the new map, ministers of the previous government are claiming that they have informed the international community but I have no record of such communication taking place.”

On 28 Aug 2023, China published its ‘standard map’, which did not show the Lipulekh, Kalapani and Limpiyadhura areas inside Nepal. 

Amid this controversy, a statement from the Ministry of Foreign Affairs reads, “Nepal stands firm and clear on its political and administrative map that the Parliament unanimously approved in 2020. The Government of Nepal unequivocally believes that our neighbors as well as the international community must respect 

this map.” 

According to the ministry, Nepal remains committed to resolving the boundary matters through dialogues and diplomacy.

Meanwhile, the International Relations Committee of the Parliament is planning to take the foreign ministry to task regarding its take on the map controversy.

“There are conflicting claims from the then and current ministers about the map, so we are preparing to seek a clarification from the Ministry of Foreign Affairs,” said Raj Kishor Yadav, the committee chair

Reading the map controversy

Once again, the map controversy has surfaced but this time around it’s not between Nepal and India but between China and Nepal. The fresh controversy followed as China issued what it calls its ‘standard map’, which does not include Nepal’s new official map. 

China’s new map has created uproar not only in its neighborhood but much beyond, with the list of countries objecting to the map increasing by the day. In the case of Nepal, the latest map controversy seems to have emerged partly from the way governments dealt with this sensitive issue in the past. 

The recent statement from Nepal’s Foreign Minister indicates that the new map was not officially submitted or communicated to countries including China. If that is the case, it shows double standards on the part of Nepali politicians, who have the habit of doing politics even on serious issues like foreign policy and national security.

The author is a geopolitical analyst 

“Nepal’s map must be respected by neighbors, international community”

The government of Nepal said that it is firm and clear on its political and administrative map unanimously approved by the Parliament of Nepal in 2020.

Issuing a statement on Friday, the Ministry of Foreign Affairs said, “Nepal stands firm and clear on its political and administrative map unanimously approved by the Parliament of Nepal in 2020".

The spokesperson for the Ministry of Foreign Affairs made the clarification in response to the media queries regarding the “2023 edition of the standard map of China” released on 28 August 2023.

“The Government of Nepal unequivocally believes that this map must be respected by our neighbors as well as the international community,” the statement reads.

Nepal remains committed to resolve the boundary matters through dialogues and diplomacy.

Nepal’s voting in UN does not contribute to bilateral relations

With the start of the Russia-Ukraine war last year, the global situation has also changed drastically. Geopolitical tensions are rising and there is a legitimate threat of global energy and food crises. After the war, there has been a lot of discussion regarding Nepal’s formal position as well. In this context, ApEx talked to Russian Ambassador Aleksei Novikov on a host of global and Nepal-Russia relations. Excerpts.

  1. After the Russia-Ukraine war, global security is becoming increasingly complex and uncertain. Geopolitical rivalries, nuclear proliferation, food security and financial crises raise questions about our ability to maintain stability. What is your take on it ? 

The subject matter of this issue is rather complex; however, there are a few clear reasons why global security is threatened nowadays.  Firstly, the very possibility of the dominance of one country, or let’s say, a group of particular states must disappear. I strongly believe that a truly democratic world must be multipolar and shall be based on generally recognized international legal norms, primarily the principles of the UN charter. Secondly, those who ignore these principles are not embarrassed by the fact that their actions are creating new risks, undermining supply chains as well as food and energy security. For example, the number of countries headed by the US who try to “contain Russia” and flood the Kiev regime with weapons is provoking the risk of spreading weapons around the world, which may lead to an outburst of international terrorism. Everyone should learn that every action has its consequences. We believe it is important that the UN, which has of late been fairly quiet in this regard, should act proactively and step up its efforts in fighting global threats without the double standards.

  1. Since you mentioned energy security, how can we address this issue ?

Energy prices have risen consistently over the past year and a half, which Western leaders purposefully keep silent about. This was the result of the policy of the central banks of the United States, Great Britain, EU states to print unsecured funds. An increase in the money supply naturally caused inflation. Price hikes were also triggered by disruptions in supply chains due to the coronavirus lockdowns in various parts of the world. The surge in fuel prices was provoked by the attempts of the West to unleash a trade and sanctions war against Russia. Europe has created a deficit in the market with its own hands, stopping the purchase of Russian oil and gas, as well as seriously complicating their transportation to third countries. Replacing Russian fuel, the Old World began to buy it from the markets of Asia and Africa, thereby giving impetus to prices. Thus, the rise in fuel prices is in no way caused by Russia's actions. Moreover, Russia tried to contribute to the normalization of the market situation by supplying oil to friendly countries at a 20-30 percent discount.

  1. What about the global food crisis?  

According to the FAO, the Russian Federation is one of the largest food producers in the world, it is a significant net exporter of agricultural products. For instance, in 2022, Russia harvested a record grain crop of 158 million tons, exported 70 million tons of agricultural products and food (cereals, oils, fish and seafood, etc.) to 160 countries of the world. As of today, every fifth export batch of wheat in the world is of Russian origin. The Russian Federation consistently advocates ensuring the activities of the FAO strictly within its mandate and without politicization. Solving the problem of food security and nutrition for all is possible only through the coherent and collective efforts of the entire international community. In the agricultural season 2023/24, Russian farmers plan to harvest at least 123 million tons of grain; half of it will be exported. In addition, the FAO confirms that the Russian Federation is one of the leading exporters of fertilizers, the largest in terms of the mineral ones. We are also the world's leading producer of other types of fertilizers, with up to 70 percent of the Russian exported fertilizers going to the developing countries of the Global South.

There have been many accusations of Russia blocking 20 million tonnes of grains in Ukrainian storage facilities, but the harsh reality of that issue is that the poorest countries are actually being held hostage to the EU and Washington’s ambitions. For the EU, food security problems are a side effect of anti-Russia policies and Western attempts to protect its self-serving “rules-based order.”

The projects to export agricultural products from Ukraine, including through EU’s so-called solidarity corridors, proved to be a humanitarian sham. Fodder corn, not wheat, became the main export in this scheme. It is the EU that needs this commodity more than others, and became the main recipient of these shipments (only 3 percent of the Ukrainian part of the “Black Sea Initiative” went to the poorest countries). The Russian part of the “package” had not been implemented at all.

  1. What is your take on Nepal’s decision to vote against Russia in UN voting on Russia-Ukraine conflict?

Russia considers Nepal a friendly state and we deeply respect its people, leadership and rich history. As you know, this year marks the 67th anniversary of the establishment of diplomatic ties between our countries and I am very happy to state that since 1956, our cooperation has been built on the basis of mutual respect, trust and concern for each other's interests.  However, some aspects of Nepal’s diplomacy seem to have changed. We got used to seeing Nepal as one of the most outstanding leaders of the non-alignment movement and the strong follower of neutral international policy. Not just Russia, but the whole world admired how perfectly Nepal implemented the Pancha Shila philosophy in its external policy. Nevertheless, the way Nepal supported confrontational anti-Russian resolutions during the UN 11th emergency special session does not contribute neither to relations with Russia, nor to the traditional Nepali approach in the international organizations. I sincerely admire the Nepali people, their honesty and optimistic attitude. Many of them told me that they supported and cheered Russia and its culture. During our conversations, literally everybody said how thankful they were for all the support that the USSR had provided Nepal with. And this makes me happy. I believe that we have many things in common. As we look forward, we remain committed to strengthening the ties between the peoples and governments of Russia and Nepal, to celebrating our shared history and achievements.

  1. Out of this perspective, how can Nepal and Russia work on the regional and international platforms?

The legal framework of the bilateral partnership consists of the number of existing agreements. Both Russia and Nepal are guided mainly by traditional multilateral international acts, primarily UN documents. Over the past years and decades, enormous changes have taken place in our countries and in the world. But the feelings of sympathy between the two peoples and the desire to deepen multifaceted bilateral cooperation have not changed. Our relations have a mutually beneficial ground and all the joint international efforts must be based on that principle. We have no tensions, our ties remain friendly despite all the efforts to spoil them. And answering your question, I would like to point out that all the future prospects of cooperation in the regional and international platforms shall stick to the same attitude as before—trust and support without relying on those who wish to draw our nations apart.

  1. Lastly, what are the new initiatives that Russia is taking to enhance bilateral ties including resuming flights between two countries?

First of all, Russia and Nepal are developing cooperation in infrastructure and railway construction. This August I had a wonderful opportunity to negotiate with Minister of Physical Infrastructure and Transport Prakash Jwala. Besides that, we maintain active contacts with the leadership of the Nepali railway industry. During the talks, the Nepali side expressed its interest in attracting RZD International and other Russian companies for the construction of the Pokhara-Ridi road, East-West railway, as well as a project to build a light metro in Kathmandu. We are also working closely with the Nepali friends in hydro energy development, having preliminary agreements on the possible participation of a Russian state company “Inter RAO” in the implementation of four projects for the construction of hydroelectric power plants in the Himalayan republic with a capacity of 300 MW or more. We believe that Nepal is interested in developing cooperation in the field of electricity generation and its export.

Agriculture continues to be one of the most promising areas of cooperation between Russia and Nepal. There have been many meetings with the Minister of Agriculture and Livestock Development that contributed to the active development of contacts in this field. The prospects of Russian-Nepali cooperation in agriculture, in particular, the supply of chemical fertilizers were on the agenda. We are actively exploring the possibility of joint construction of a plant for the production of chemical fertilizers in Nepal and we hope Russian farmers will shortly visit Nepal to explore the possibility of creating greenhouse complexes, including their construction in high-altitude areas. Training programs for Nepali specialists in Russia and study opportunities for Nepali students in Russian agricultural universities are discussed as well. 

Today young people from Nepal have the opportunity to receive free scholarships to study in Russia. Moreover the Ministry of Education and Science of Russia already expressed its readiness to increase the number of positions for Nepali nationals to study in various programs and specialties (including medicine and IT) in the Russian educational institutions within quota of the Russian Government for 2024/25 academic year. And of course, establishing the direct flights between Kathmandu and Moscow is of essential importance to us. Such a measure would contribute to strengthening cooperation in all areas. 

Editorial: Maintain social harmony

“This is a garden of all castes, everybody should acknowledge it. Everybody from all the four Jat (Caste) and thirty-six Barna (creed) should protect and promote this garden.” The words of King Prithvi Narayan Shah are relevant today. In a world beset by religious and ethnic strife, Nepal's exceptional degree of religious tolerance stands as a testament to its unity in diversity.

But recent events in Eastern Nepal, specifically in Dharan, have raised apprehensions about the stability of this harmonious equilibrium. Disturbing attempts to undermine social and religious cohesion have emerged, which calls for vigilant oversight by the authorities. While immediate crisis may have been averted, the nascent situation remains susceptible to manipulation through the powerful medium of social media.

The constitution of 2015 has enshrined the rights of all castes and communities to practice their faiths and preserve their cultures, safeguarding these liberties from encroaching on the rights of others. Legal frameworks have also been established, delineating the boundaries for all ethnic and religious groups.

Unfortunately, the proliferation of social media has exacerbated the situation, as malicious actors exploit these platforms to disseminate false information and fan the flames of violence. Certain self-proclaimed religious figures have unabashedly amplified their divisive rhetoric, exacerbating tensions through the online sphere. While safeguarding freedom of expression is paramount, authorities must exercise discretion in curbing objectionable content that could incite turmoil.

The specter of external forces seeking to sow discord cannot be dismissed. The collective appeal for calm and unity by political leaders, including Prime Minister Pushpa Kamal Dahal, demonstrate the gravity of the situation. Government agencies must remain vigilant and intervene if such machinations threaten the social fabric.

In these trying times, the imperative to preserve our cherished tradition of harmonious coexistence is clear. Diligent oversight, unity among diverse factions and a steadfast commitment to maintaining the rich tapestry of Nepali society stand as the bulwarks against divisive forces seeking to erode its unity.

Nepal’s foreign trade declines by 2.28 percent

Nepal’s foreign trade has declined in the first month of the current fiscal year 2023/24. According to the latest foreign trade statistics released by the Department of Customs, both imports and exports declined in Shrawan (mid-July to mid-August). The imports shrunk by 1.56 percent in Shrawan as the country imported goods worth 129.23bn in Shrawan. The imports in the first month of 2022/23 stood at Rs 131.28bn. On the other hand, Nepal’s exports decreased by 8.65 percent to Rs 13.52bn. The country had exported goods worth Rs 14.80bn in the first month of 2022/23. With both imports and exports declining, the country’s total foreign trade decreased by 2.28 percent.

According to the Customs Department, there has been a big decline in the import of petroleum products in Shrawan. The country’s petroleum products’ import bills stood at Rs 21.98bn compared to Rs 25bn during the same period of the last fiscal.

There has been growth in the imports of iron and steel compared to the last fiscal. Nepal imported iron and steel worth Rs 12.95bn in this Shrawan compared to Rs 11.23bn in the last Shrawan. The country’s vegetable imports stood at Rs 2.5bn, medicine imports at Rs 2.81bn and vehicle imports at Rs 4.29bn.

 

Amid economic slowdown, digital payments see a 13.22 percent decline in the last fiscal

With the contraction in economic activities, digital payments in Nepal have taken a beating in the last fiscal year. While the expansion of retail digital payments remains stable, there was a reduction in the high-volume digital transactions primarily conducted through the Real Time Gross Settlement (RTGS) during the fiscal year 2022/23.

According to Nepal Rastra Bank (NRB), overall digital payment has declined by 13.22 percent in 2022/23. The NRB data shows total digital payments amounted to Rs 51640.88bn in 2022/23 compared to Rs 59508.837bn in 2021/22. As high-volume transactions have declined, NRB said that the decline in RTGS has affected the overall digital payments in this fiscal.

The latest statistics of the NRB show RTGS payments plummeted by 18.61 percent in 2022/23. In the review period, the settlements amounted to Rs 34,289.977bn compared to Rs 42,134.018bn in 2021/22.

An RTGS is a funds transfer system in which the transfer of funds between one bank and another takes place in ‘real-time’ and on a ‘gross’—transaction by transaction basis. The NRB data shows RTGS transactions increased in the first three months of the current fiscal year, then started to decline gradually.

However, retail payments through wallets, QR codes, mobile banking, and ConnectIPS surged in the current fiscal year, according to NRB. The payment through ConnectIPS grew by 33.51 percent in the last fiscal year. According to NRB, payments worth Rs 4,114.628bn were made through ConnectIPS in 2022/23 compared to Rs 3,081.764bn in 2021/22. Similarly, mobile banking transactions surged by 80.64 percent to Rs 2,185.999bn in 2022/23 from Rs 1,210.134bn in 2021/22. There has been a whopping 159.67 percent growth in QR payments in the last fiscal year as Nepalis made payments totaling Rs 245.412bn.

Digital payments which were on an increasing trend till 2021/22, reversed in 2022/23. Bankers and experts point out the current economic slowdown for this. According to them, the spending capacity of consumers has been hard hit by rising inflation resulting in a decline in digital payments.

Guru Prasad Paudel, Chief of the Payment System Department at NRB, has said that the reduction in digital transactions reflects the economic activity’s contraction. “The decline in payments through RTGS has led to a decrease in overall digital transactions,” said Paudel.

There was a significant surge in digital transactions in Nepal in early 2020 following the outbreak of the Covid-19 pandemic. The lockdowns compelled individuals to remain indoors, leading to the swift adoption of digital payment methods and online shopping for daily necessities. This shift was supported by the growing utilization of smartphones, with e-commerce and point-of-sale (POS) transactions emerging as notable trends.

Post-pandemic, digital platforms including connectIPS, e-wallets, mobile banking, internet banking, QR codes, and bank cards are being used widely as customers can use these instruments in self-service mode.

No Law, No Justice, No government for conflict victims

Nepal’s transitional justice process has been a long and frustrating saga, seemingly without a foreseeable conclusion. As the two key commissions tasked with investigating war-era human rights abuses—Truth and Reconciliation Commission and the Commission of Investigation on Enforced Disappeared Persons—languish without leadership, victims and international observers alike are grappling with uncertainty.

Rishi Poudel,  the TRC undersecretary, says the commission’s works are at a complete standstill in the absence of its chair and other members. 

The TRC has registered 64,000 complaints from the conflict victims, and has so far managed to muster preliminary investigations for around 4,000 cases. Around 3,000 cases have been left in abeyance due to a lack of concrete evidence. 

Similarly, the CIEDP, tasked with addressing enforced disappearances, has received a total of 3,288 complaints. Out of these, 277 were transferred to the TRC, 292 were put on hold, 136 complaints were found to be duplicative, and 48 cases were resolved. Presently, the commission grapples with 258 active complaints.

Suman Adhikari, a conflict victim, laments that the TRC has slipped down the priority list of the coalition government, instead it is being used as a bargaining chip by political parties. “We are expecting a public statement from top three leaders of major parties Nepali Congress, CPN-UML and CPN (Maoist Center) expressing their commitment to TRC and apology for the delay,” he says.

Beyond the immediate vacuum in leadership, a newly tabled bill has thrust the situation into the spotlight. The bill, introduced on March 9 this year, seeks to amend the Enforced Disappearance Inquiry and Truth and Reconciliation Commission Act of 2014. But it is a contentious move, one that has roused skepticism from both victims and the global community alike. Critics are quick to point out the bill's potential shortcomings, raising questions about its capacity to comprehensively address the multifaceted challenges at hand. 

The amendment’s hurried unveiling followed Prime Minister Pushpa Kamal Dahal’s startling statement, where he took ownership of the deaths of 5,000 individuals during the insurgency.

While registering the bill in the House of Representatives, Minister for Information and Communications Rekha Sharma had said, “The transitional justice Act needs to be amended to address a range of human rights violations, and to prosecute those individuals implicated in serious crimes.”

But victims of conflicts and the international community are not convinced. They say if enacted, the law would prevent the investigation of crimes including rape, murder, torture, war crimes and crime against humanity that were committed during the conflict.

Despite glimmers of optimism, such as provisions examining the conflict's root causes and securing reparations for victims, the United Nations experts have voiced concerns that the amendments, if adopted, could inadvertently provide sanctuary for perpetrators of grave crimes committed between 1996 and 2006. This criticism not only spotlights a potential breach of international obligations but also underscores a discord with Nepal's own Supreme Court rulings.

The plight of conflict victims is both a somber reminder of the past and a call for urgent action. The government's recent extension of the commissions' tenure until mid-January 2024 serves as a temporary reprieve, but victims remain undeterred in their pursuit of justice. 

In their ‘Kathmandu Declaration’, the victims have accused the government and major political parties of disregarding the commitments outlined in the Comprehensive Peace Agreement signed on 21 Nov 2006. 

“Had the government and political parties been serious, we wouldn’t have to wait for so long to get justice,” say the victims. “It’s been eight years since the formation of the two transitional justice bodies, but they remain largely inert and without key office bearers.” 

The conflict victims have also accused the government and political parties of registering the amendment bill by bypassing the parliamentary sub-committee that was tasked with the responsibility of preparing the amendment proposal. 

Criticizing the removal of the definition of forced disappearance from the bill, the victims have urged the government to include the definition, which is in the existing Act. They say many families don't even know the status of their missing loved ones, whether they are dead or alive. 

Likewise, they have sought provisions for compensating victims of torture, sexual violence and conflict-related atrocities, as well as return of the seized properties. The conflict victims have also called for changes in the proposed appointment procedure for officials in the transitional justice commissions. 

“Since past experiences have proved that the existing procedure is faulty, the government should make sure that the committee formed to recommend officials in the commissions should be credible, independent and fair,” they say. 

Furthermore, the conflict victims have demanded retroactive application of legislation to ensure that the perpetrators of serious crimes committed in the past are brought to justice. They have also suggested formation of a special court to handle transitional justice cases through the process similar to the establishment of a high court, rather than forming a three-member Special Court on the recommendation of the judicial council. 

The victims have also demanded for immediate implementation of the second national action plan for UN Security Council Resolutions No 1325 and 1820, which pertain to women, peace, and security. 

They have denounced the controversial amendment proposal to the Criminal Procedure Code, 2074 as well. The proposal, recently tabled  in the Parliament, allows for the withdrawal of ongoing criminal cases involving serious human rights violations. 

As Nepal grapples with its past, navigating the arduous terrain of transitional justice, the nation's commitment to lasting accountability is poised for examination.

The fate of the TRC and the CIEDP, intertwined with political dynamics and international responsibilities, represents the crucible in which Nepal's dedication to justice is being forged. The agony of victims, spanning realms from economic deprivation to emotional distress, underscores the gravity of the challenge—a challenge that can only be overcome with political will and steadfastness.

Grain cart upset, Nepal approaches India/As grain ban starts to bite, Nepal approaches India

Not so long ago, the government of Nepal advised the people not to opt for panic buying of grains, stating that there was enough grain stock to outlast the upcoming harvest season. 

But the ‘comfortable situation’ appears to have changed all of a sudden.  

Recently, the government of Nepal wrote to India asking for 155,000 tons of grains and sugar, stating that India's global ban on grain export may affect Nepal too.

Spokesperson at the Ministry of Industry, Commerce and Supplies, Radhika Aryal, confirmed that the government had written to the Indian government asking for the supply of 100,000 tons of rice, 50,000 tons of sugar and 5,000 tons of paddy.

“The letter has been sent to the Embassy of India in Nepal via the Ministry of Foreign Affairs but the official reply from the Indian government has not been received yet,” said Aryal.

India has imposed a ban on the export of non-Basmati rice across the globe despite objections from the international community. The export policy of non-Basmati white rice, semi milled or wholly milled rice, whether or not polished or glazed, is amended from “free to prohibited,” reads a notice from the Directorate General of Foreign Trade.

The price of rice, Nepal’s staple food, has been escalating in the domestic market right after India announced a global ban on the export of all varieties of rice, save the Basmati. The Indian ban came after Russia announced its withdrawal from the Black Sea Grain Deal in the midst of the Ukraine war, straining a war-hit supply system and aggravating the global food crisis.

The export will be allowed on the basis of permission granted by the Indian government to other countries to meet their food security needs and based on the request of their government.

Before this move, the government had been saying that there was enough gain stock to last three months after which a new harvest season will begin. Despite the government’s assurance, panic buying has been going unabated and the traders have been making hay. As for sugar, the government has said domestic production was not enough to meet the demand.

Fabrication of refugee documents in Nepal is concerning: US State Department

The US Department of State’s Coordinator on Global Anti-Corruption Richard Nephew paid an official visit to Nepal this past week. According to the US embassy in Kathmandu, Nephew discussed with Nepali officials the progress regarding Nepal’s anti-corruption commitment as part of Summit for Democracy, and pledged US commitment to supporting Nepal’s efforts to eradicate corruption.

Nephew’s visit comes at a time when Nepal is investigating some big corruption scandals such as the fake Bhutanese refugee scandal, Lalita Niwas land grab and Kathmandu airport gold trafficking case. The US anti-corruption head also met Deputy Prime Minister and Minister for Home Affairs Narayan Kaji Shrestha and the leadership of the Central Investigation Bureau of Nepal Police. 

Fighting corruption is a key component of US foreign policy. In response to ApEx’s email inquiry about Nephew’s visit, a US State Department spokesperson said: “We know as a universal truth that corruption erodes public trust in government and democratic institutions, deepens poverty and inequity, threatens public security, and stifles opportunity and growth.”

“It affects people in virtually every aspect of their daily lives, draining vital resources. That is why President Biden has designated the fight against corruption as a core US national security interest and why Coordinator Nephew’s mission is so important.” 

During his two-day Nepal stay, Nephew met with various Nepali officials  to learn about corruption challenges and to confer on how the US can help address these issues as part of overall Nepal-US partnership.

The US State Department spokesperson said Nephew was not in Nepal to see the progress on any specific case of corruption. In response to ApEx’s inquiry, the spokesperson said: “Just like any allegations of corruption, the current allegations of corruption and the unlawful fabrication of refugee documents in Nepal are concerning.”

This is probably the first time the US has expressed concerns over the fake Bhutanese refugee scam.  

“We understand Nepali authorities are investigating the allegations and hope they will quickly determine what transpired, hold perpetrators accountable, and deter future corruption cases in accordance with the law and the Nepal government’s commitments to transparency and accountability,” said the spokesperson.

“The United States has consistently supported Nepali government and civil society efforts to root out corruption. Transparent investigations into allegations of corruption demonstrate to the Nepali people that no one is above the law.  We commend actions by the Government of Nepal to bring truth to light in accordance with rule of law.”

Between 2007 and 2018, the US has welcomed tens of thousands of Bhutanese refugees formerly residing in Nepal as part of our global commitment to support refugees. The program has since ended, and there were no significant concerns regarding fraudulent activity associated with that resettlement process, said the spokesperson. 

Of late, visiting US officials have been raising corruption eradication as a key agenda to strengthen democracy. Earlier in January, US under Secretary for Political Affairs Victoria Nuland talked with Nepali politicians about the need to continue fighting corruption.

 The Biden administration in 2021 unveiled the US Strategy on Countering Corruption. In June that year, Biden said that corruption threatens United States national security, economic equity, global anti-poverty and development efforts, and democracy itself. “But by effectively preventing and countering corruption and demonstrating the advances of transparent and accountable governance, we can secure a critical advantage for the United States and other democracies,” he added.  

In Nepal, three corruption scandals—fake refugee scandal, Lalita Niwas land grab and gold smuggling—are under investigation. On the fake refugee case, the CIB has already filed cases against more than one person including former home minister, Bal Krishna Khand, and CPN-UML senior leader Top Bahadur Rayamajhi.
The CIB has also reopened the file on Lalita Niwas land grab case in which two former prime ministers Madhav Kumar Nepal and Baburam Bhattarai have also been implicated. The CIB is also investigating the gold trafficking case from Kathmandu’s Tribhuvan International Airport in which the involvement of high profile business persons and politicians has been suspected.

US returns 40 illegally exported wooden artifacts to Nepal

The United States has returned 40 illegally exported wooden artifacts to Nepal.

The Embassy of Nepal in Washington DC said that it returned 40 wooden artifacts received from the Homeland Security Investigations (HSI) of the US Department of Homeland Security (DHS) to Nepal.

It is said that the Department of Archaeology of Nepal will receive the artifacts in Kathmandu on Saturday.

Those illegally exported artifacts of Nepal were confiscated in Hawaii by the United States Customs and Border Protection in August 2010.

The government of Nepal had officially requested the US government to return the artifacts to Nepal in 2011.

The Embassy of Nepal in Washington DC had received the artifacts on May 11, 2023.

"Four, out of 39 engraved and painted wooden panels and a carved wooden shrine, were randomly selected for display during the handover ceremony. The Embassy of Nepal had displayed these artifacts again during Nepal tourism promotion program organized at the Embassy on August 1," according to a press statement issued by the Embassy of Nepal.

The Embassy has thanked all the US government agencies and individuals in these efforts.

With this shipment, the Embassy has so far returned 47 artifacts of historical, cultural, and religious importance to Nepal since April 2022.

Big traders make hay amid panic buying of rice

The price of rice, Nepal’s staple food, is escalating in the domestic market right after India announced a global ban on the export of all varieties of rice, save the Basmati. The move from New Delhi came after Russia announced its withdrawal from the Black Sea Grain Deal in the midst of the Ukraine war, straining a war-hit supply system and aggravating the global food crisis. 

Despite hints that the ban may not apply to Nepal and the government’s assurance that there’s enough stock to last three months after which a new harvest season will begin, panic buying has been going unabated and the traders have been making hay. 

In a very short span of time, traders have raised the prices of different varieties of rice by more than 16 percent in the domestic market.

“When I inquired about the price of a 25 kg rice sack some days ago, the shopkeeper said Rs 2,300. But when I visited the shop the next day, the price had already increased by Rs 200. The shopkeeper said the price would rise further as he was running out of stock. That’s why I bought two sacks of rice,” said Parbati Dahal, a resident of Naya Thimi.

Many more customers like Dahal are opting for panic buying, fearing the unavailability of rice in the market in the coming days. But the government officials say there is no reason to panic. 

“We have food grains for three months at least. The new paddy will be ready in October-November,” says Gajendra Kumar Thakur, director-general at the Department of Commerce, Supplies and Consumer Protection.

In response to increasing complaints from consumers about the price hike, government authorities have a readymade answer: “We have been monitoring the market daily.”

Thakur says it is difficult to immediately find out whether there is black marketeering going on, as people get their foodstuffs from wholesalers, distributors and retailers. 

“We have been collecting data from the market and analyzing them. The reported price hike is under investigation,” adds Thakur.

The department has requested consumers to lodge complaints against price gouging by calling at its two numbers: 5343939 and 5347992.  

India has imposed a ban on the export of non-Basmati rice across the globe despite objections from the international community. The export policy of non-Basmati white rice, semi milled or wholly milled rice, whether or not polished or glazed, is amended from “free to prohibited,” according to a notification from the Directorate General of Foreign Trade.

According to one official, discussions are underway with the Indian government to exempt Nepal from the ban list. 

The Indian rice ban has also affected the prices of Nepali rice. Dev Kumar Shrestha, who runs a rice mill at Lagankhel, Lalitpur, says as this is an off-season for rice production, it is usually normal for the prices to go up during this time. But he does admit that the hike rates have been unreasonable after the Indian ban of rice export.   

“Big traders who are in power and are making huge profits by causing an artificial crisis,” says Shrestha. “When they raise the price, we too have to buy at an increased rate, which has caused the price increase.”   

Shrestha says since India has not banned the export of Basmati rice, high quality rice including long grain, Basmati rice should be easily available. “There is an ample supply of low quality rice, only the middle quality rice varieties are hard to get. Still, there is a panic among consumers.”

Some shopkeepers have stopped ordering rice because they are finding it difficult to sell them due to the price hike. Fanindra Shrestha, a grocer from Buddhanagar, Kathmandu, is one of them. He says the customers who visit his shop return empty handed after hearing the new price list of the rice varieties.  

“I cannot convince them, so I thought it is best not to order more rice because my customers are not going to buy them,” says Fanindra.

When there is a price hike of any goods in the market, it affects the consumers and eventually the supply chain. Those with purchasing power can buy and hoard any amount of goods that are in short supply, whereas the poor consumers cannot afford them. 

Market experts warn this could create an imbalance in the demand and supply, upsetting the market.

Several traders and experts that ApEx spoke with suggest that the government needs to come up with a long-term solution to address the issue, as this is not the first time the country has experienced such a scenario. They say that the government should take the initiative to make Nepal self-reliant when it comes to essential food items including rice. 

“We must increase our domestic rice production,” says Shrestha, the rice mill owner from Lagankhel. “By doing so we will no longer be dependent on foreign countries for rice.”

Higher education abroad: A trend among students

Over the past few years, Nepal has witnessed a significant surge in the number of students opting to pursue higher education abroad, particularly in countries like the United States, Australia, and the United Kingdom, among other popular destinations. This article delves into the reasons behind this growing trend, analyzing the factors that drive Nepali students to seek educational opportunities overseas. By examining relevant statistics and facts, the aim is to shed light on the underlying motivations that have reshaped the higher education landscape in Nepal.

Quality of education

One of the primary factors driving this interest in studying abroad is the perceived higher quality of education offered by renowned international institutions. Many students believe that attending colleges overseas would provide them with a more comprehensive and globally recognized education, preparing them for the competitive global job market. According to research conducted by the Ministry of Education, approximately 65 percent of students seeking higher education abroad cite improved academic facilities and resources as their main motivation.

Specialized courses and opportunities

Another significant motivator is the lack of specialized courses offered in Nepal’s institutions. Many students have specific career goals and seek programs that are not available in their home country. Countries like the US and the UK are known for offering a wide range of courses that cater to diverse interests and career options. Subjects such as artificial intelligence, robotics, biotechnology, and environmental studies are more readily available in international universities.

Research opportunities and infrastructure

Opportunities for research and access to advanced infrastructure are additional drivers pushing students to pursue further education overseas. Foreign research institutes offer state-of-the-art facilities, well-equipped laboratories, and funding for research initiatives, which can significantly contribute to a student’s academic and professional growth.

Global exposure and cultural diversity

The prospect of global exposure and cultural diversity also plays a vital role in influencing students’ decisions to study abroad. Immersing themselves in different cultures and perspectives enhances their overall educational experience and fosters cross-cultural dialogue, tolerance, and adaptability. Surveys show that over 78 percent of Nepali students consider the chance to experience other cultures and environments as a critical factor in their decision-making process.

Visa policies and job opportunities

Favorable visa policies in countries like Australia, Canada, and New Zealand also attract Nepalese students looking for better job opportunities upon graduation. Many students view obtaining a foreign degree as a pathway to lucrative employment in their host country or even back in Nepal. Data from the Nepal Immigration Office indicates a steady increase in the number of student visas granted for these nations over the past decade.

Political and economic factors

Socioeconomic and political factors also come into play in Nepali students’ decision-making processes. Concerns about the insecurity of Nepal’s education system due to frequent strikes and disruptions have raised questions about educational quality and reliability. Moreover, the competitive nature of the domestic labor market and limited prospects for professional advancement have encouraged students to seek better opportunities abroad.

Language barriers, specifically English language proficiency, are also influencing factors. While English is one of Nepal’s official languages, the quality of English language education may not always meet international standards. Consequently, students often choose to take English language competency exams such as TOEFL and IELTS as admission requirements for overseas universities.

The increasing number of Nepali students seeking higher education abroad reflects a global trend where overseas education is becoming more accessible and attractive. This movement is driven by perceived higher academic standards, specialized course offerings, research opportunities, exposure to different cultures, and the potential for better job prospects. It is crucial for policymakers and education authorities to acknowledge these reasons and work towards improving educational quality and expanding opportunities within the country, in order to retain talent and contribute to national development.

Furthermore, to stay abreast of global advancements in various fields, the government should explore partnerships with international institutions and invest in research infrastructure. By addressing the issues that drive students overseas, Nepal can transform its education system into one that not only attracts students from other countries but also retains talented individuals from within the nation, ultimately contributing to the country’s growth and development.

The author works for an education consultancy firm

Call to promote millet farming

With the rising consumption of millet, stakeholders have highlighted the urgent need to boost its production in Nepal.

As part of efforts to raise awareness about millet farming, an event commemorating the 3rd International Millet Day was organized in Mandan Deupur-6 Municipality of Kavre in the joint coordination of the National Farmers Groups Federation Nepal, Anaj Nepal, Mandan Deupur Municipality, Food and Agriculture Organization, Care Nepal, and Milan Women Agriculture Group.

Navaraj Basnet, President of the federation, emphasized that millet is a crucial food crop for marginalized farmers, forming the basis of their livelihood. He urged the government to prioritize millet farming, promote awareness about climate-friendly farming practices, and educate the public about the health benefits and suitability of millet cultivation. Additionally, he stressed the importance of linking millet processing and entrepreneurship to agricultural education.

Similarly, Dr Ram Krishna Shrestha, Chief of Crop Development and Agricultural Biodiversity Conservation Center, shared that the government is actively promoting millet farming in 167 rural municipalities this year, an increase from the 133 municipalities covered last year. “The program includes various components, such as crop production, branding, marketing, and the protection of indigenous crops,” he added. Likewise, Dr Hari Bahadur KC, a joint secretary at the Department of Agriculture, informed that the government is taking measures to protect indigenous crops like millets. “We need a concerted effort from all stakeholders to increase millet production,” he added.

Also speaking on the occasion, Uddhav Adhikari, Chairman of Agriculture Campaign for Food, underscored the importance of prioritizing millet cultivation, stating that farmers across the country are giving up millet farming. “Now that people have realized the significance of this crop and its potential, the government needs to provide support to farmers to increase production,” he added.

Recognizing the global importance of millets, the United Nations General Assembly has declared 2023 as the International Year of Millets. The government has also designated this year as the Year of Millets, with the theme ‘Millet Crops for Food Nutrition, Security, Environment, and Rural Transformation’. Nepal is ranked 13th in the world for millet production, with 320,953 tons produced in 2020, according to data from the Food and Agriculture Organization. However, due to the surging domestic demand, Nepal has been importing a significant quantity of millet, amounting to Rs 732m in 2022/23, an increase from Rs 722m in 2021/22.