It was 30 years ago this month that investment into ‘Baby Arun’, the 201MW first phase of the run-of-river Arun III project, was brought to a screeching halt when the World Bank officially withdrew its support. This brought about profound and fundamental changes in the way Nepal’s power sector subsequently developed. Nepalis suffered debilitating power outages between 2008-2016 due to shortages attributable to the cancellation. At the same time, the gap left by Baby Arun was filled by private sector investment in ways that were not obvious in 1995. It took 30 years, but in many ways Nepal’s power sector is more healthy today than it has ever been, and likely better than if the project was built as planned. At a projected budget of $1.08 billion, Baby Arun would have cost the equivalent of Nepal’s entire annual government expenditure in 1995. It was to be funded by concessional grants and loans from multilateral and bilateral funders, including the World Bank, Asian Development Bank (ADB), KfW, and investment by the government itself. At the time, Nepal’s total electricity generation capacity was only 230MW, and the trajectory of the power sector changed dramatically following the cancellation. In the past 30 years, $5.4 billion has been invested in the power sector led by private investors, and much of it from domestic banks and pension funds (table, right).  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0.jpg" data-media-id="editor_0" data-image-id="20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0" data-rendition-name="original" width="984" height="521" loading="lazy" alt="30 years after Baby Arun"> </figure>  Nearly 70% of the new megawatts generated were by private independent power producers (IPP) in the past 30 years, while the Nepal Electricity Authority (NEA) and its subsidiary companies added 30% of new capacity. Almost 80% of total debt financing came from domestic banks and employee retirement funds. International assistance for power generation dropped dramatically over this time, accounting for only about 15% of investment. Before 1995 new power projects used to be entirely dependent on foreign aid. Since 1995, 63% of new generation came from 171 small hydropower projects with an average capacity of 12MW, while 4% was from 21 solar photovoltaic and biomass projects developed by local IPPs.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097.jpg" data-media-id="editor_1" data-image-id="20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097" data-rendition-name="original" width="988" height="503" loading="lazy" alt="30 years after Baby Arun"> </figure>  Over three decades, investment in Nepal’s power supply came primarily from new actors that had never before been involved in this sector. The rate of electrification rose from 10% to close to 100% -- sufficient to meet domestic needs during most of the year, and in 2024 made Nepal a net exporter of power to India for the first time in its history. As practically all the new investment in this period went into run-of-river hydro and solar projects, rather than into hydropower reservoirs with seasonal storage, Nepal continues to rely on imports from India during the dry winter months. Surplus electricity generation for export during the monsoon is slated to grow rapidly as another 200 solar and hydro projects are nearing completion of construction, with over 5,000MW of power capacity. Private Power The cancellation of Baby Arun inadvertently accelerated the entry of the private sector into Nepal’s power generation. The government enacted the Electricity Act in 1992 to attract private IPPs and diversify away from total dependence from international aid, but had been struggling for several years to conclude the first agreement with the 60MW Khimti Project. There remained a large gap between the tariff that the government thought was reasonable versus what was demanded by the Norwegian investor Statkraft, and the private sector arms of the World Bank and ADB that were financing the project. The shock of World Bank withdrawal from Baby Arun put tremendous pressure on the government, then led by the UML as it is now. The Bank’s decision to terminate its involvement was ostensibly, at least partially, taken in response to a letter critiquing the project sent by the UML while it was in the opposition.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347.jpg" data-media-id="editor_2" data-image-id="20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347" data-rendition-name="original" width="949" height="446" loading="lazy" alt="30 years after Baby Arun"> <figcaption>BAD NEWS: Newspaper clippings from the early 90s on tender announcement ahead of loan approval (left) and secrecy surrounding environmental assessment (centre) of Arun III before its eventual cancellation in August 1995.</figcaption> </figure>  The government was forced to soften its position and agree to the investors’ terms following the cancellation of Baby Arun. It directed NEA to sign a power purchase agreement (PPA) with Khimti. It was concluded in January 1996, and this was followed by a second PPA in July 1996 with Panda Energy, the American developer of the 45MW Upper Bhotekosi project. The expensive USD-denominated agreements to buy power from two international private producers, with price escalation clauses tied to the New York Consumer Price Index, sent alarm bells ringing. There was worry that the country was heading towards unaffordable tariff rates for the consumer and potential bankruptcy for NEA as a result of inevitable future weakening of the Nepali Rupee. The government had strong-armed NEA into signing these agreements, and realised that concessionary financing terms that Nepal was used to receiving for public sector projects such as Baby Arun and Kali Gandaki A, that included below-market interest rates and 40 years repayment period with a 10 year grace period before starting repayment, were not the norm for private sector investors. Nepal’s status as a less than attractive destination for foreign investment meant that the country had few options but to accept expensive dollar PPAs from international developers with the high commercial interest rates and short repayment periods imposed by their banks because of high investment risks. In the end, the government ended up having to additionally provide a sovereign guarantee in order to close the deal at the insistence of the lenders – committing it to repayment in case NEA defaulted on paying the IPPs. It is reasonable to assume that the extraordinarily high political cost of agreeing to the PPA terms would have meant that no government would have willingly agreed to them in 1995 had it not suffered the trauma of the loss of concessionary-financed public sector projects as large as the Baby Arun. It has taken NEA 25 years to consider offering dollar-denominated PPAs again: to cover the foreign exchange portion of the investment in the 216MW Upper Trisuli-1 and 120MW Rasuwa-Bhotekosi Hydropower projects. It seemed unlikely at the time, but it turned out that the dire situation Nepal found itself in 1995 planted the seed to mobilise investment for affordable power from within the country. Double Whammy After the dual shock of first losing investment in Baby Arun and having to sign expensive power purchase agreements with international IPPs, the first proposal for an alternative strategy to mitigate the risk of foreign currency investment into hydropower projects came from a group of engineers within the Arun III team at NEA. Led by <a href="https://archive.nepalitimes.com/news.php?id=4900">Deputy Director Damber Bahadur Nepali,</a> engineers convinced the leadership that NEA needed to invest in a subsidiary company to build a series of locally-designed and domestically-financed projects that would have lower cost with rupee-denominated PPAs. They registered the Chilime Hydropower Company Limited (CHCL) in October 1995 with 51% shares from NEA, 25% from its employees, and 24% available for the general public, 10% of which was prioritised for local residents at the project site. The 22.1MW project is in Rasuwa on a tributary of the Trisuli, and mobilised debt financing from the Employee Provident Fund, which manages retirement savings for employees of the government, public enterprises, and private sector institutions. CHCL’s experience showed that NEA employees themselves believed that individual hydropower projects with operational independence from NEA could be developed profitably in Nepal by its own engineers -- and they were willing to put their own money on the line. Chilime also demonstrated that there was money in the country, particularly with retirement funds, looking for opportunities for long-term investments. Following completion of Chilime in 2003, CHCL led the formation of three other NEA subsidiary companies that completed construction in 2023 and 2024, producing 168.3MW using fully rupee-tied investment. NEA’s largest subsidiary, the Upper Tamakosi Hydropower Limited, completed construction of its 456MW plant in 2021.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3.jpg" data-media-id="editor_4" data-image-id="20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3" data-rendition-name="original" width="3000" height="1571" loading="lazy" alt="30 Years after Baby Arun"> <figcaption>DAMNED: The $700 million 456MW Upper Tamakosi built entirely with domestic funds before it was destroyed by the September floods last year. </figcaption> </figure>  There were some delays and cost overruns on this run-of-river project, the largest in the country with a final cost of over $700 million -- all of it sourced domestically. The five subsidiary companies launched by NEA have produced almost two times as much new power as NEA has over the past 30 years. Seven other NEA subsidiaries are currently constructing projects to add another 474MW to the national grid. But even more important than NEA subsidiaries have been local IPPs: Nepali companies which have over the past three decades enthusiastically entered the hydropower sector. From a regulatory perspective, the credit for mobilising domestic private investment to engage in power generation goes to Minister of Water Resources Shailaja Acharya, who in 1998 offered a flat feed-in-tariff of Rs4/kWh for hydropower projects under 10MW. This upfront offer removed a major barrier that early developers had faced of having to spend money to carry out a detailed feasibility study before they could even start tariff negotiations with NEA. She had laid the foundation stone of the Chilime project, and proved to be the champion of opening up the sector for domestic IPPs. The guarantee of a PPA with a fixed tariff, irrespective of project specifications, gave small power developers the confidence to apply for survey licenses and invest in feasibility studies so they could directly approach commercial banks and make a case for their project producing required revenue to repay loans. Domestic IPPs started adding power to the national grid in 2002. Their contribution was initially modest, and first projects were small and commercial lenders who took time to be confident about providing debt financing to a sector which had previously not been considered suitable for private sector investment. While the first 10 years were slow, with less than 10MW being added to the grid each year, this increased twenty fold over the following ten years, resulting in the equivalent of a Baby Arun being added by Nepali IPPs to the grid each year. A total of 84 IPPs added 232MW, 328 MW, 454MW, and 400MW of new generation to the grid in 2021-2024 (graph). There was explosive, exponential growth as domestic developers have surged ahead to account for 76% of the new megawatts added to the grid since 2020, compared to 24% by NEA and its subsidiary companies. The megawatts that IPPs are adding have followed the classic ‘hockey stick curve’ with the ‘breakout point’, signaling the rapid growth phase in 2020. Private producers are expected to accelerate new generation in the coming years with 300 solar and hydropower projects adding 11,000MW. Another 166 hydropower and 96 solar projects are currently in the survey stage, and are in line to add another 11,000MW to the construction pipeline. One major challenge is finding financing required for the projects. Domestic investment will no longer be sufficient to finance this ambitious pipeline of renewable energy projects. Project developers as well as NEA and the Electricity Regulatory Commission will have to leverage their substantial experience accumulated through the construction of over 200 projects to attract regional and international investment and hedge the risks of dollar-denominated PPAs. Following the cancellation of Baby Arun, <a href="https://nepalitimes.com/opinion/people-power/decentralising-power-in-nepal">Nepal developed a highly distributed power sector</a>. The national electricity grid is currently supplied with power from a remarkably decentralised array of hundreds of hydropower and solar photovoltaic projects spread across 43 districts and all seven provinces.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b.jpg" data-media-id="editor_6" data-image-id="20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b" data-rendition-name="original" width="1228" height="867" loading="lazy" alt="30 years after Baby Arun"> </figure>  This presents a sharp contrast to the pathway of a few large public sector hydropower projects with a sprinkling of private sector projects that was envisioned as part of NEA’s investment planning when Baby Arun was being considered the front runner for investment. The strategy then was to allow public sector investment in a few large hydropower projects with thermal plants to fill the gap. Knowing what we know now about acceleration of climate change impacts and increased extreme weather events, following this path would have made Nepal’s power sector highly vulnerable. Decentralised generation greatly improves the resilience of Nepal’s power supply as damage to power plants in one part of the country need not affect other areas that have their own generation. Following the investment plan where over two thirds of the country’s power supply would have come from power plants on the Arun River, would have greatly imperiled Nepal’s energy security. All rivers in Nepal are susceptible to flooding from cloudbursts made more frequent by climate change. The Arun River which is fed by glaciers in Tibet is also at risk to glacial lake outburst floods. Bikash Pandey is Director of Clean Energy and Circular Economy at Winrock International. People Power is his regular column in Nepali Times on global energy issues relevant to Nepal. <h2>Decentralised and Diversified</h2> In the 30 years since the cancellation of ‘Baby Arun’: Hydropower projects constructed cover capacities ranging from less than 1MW to 456MW and developed by IPPs from across the country with strong local involvement in purchasing equity shares. Renewable energy sources contributed to the generation mix through solar IPPs that further contribute to climate resilience, and cover shortfalls during low rainfall. The government is committed to solar contributing 10% of the power on the grid. Increasing solar beyond this target and providing incentives to project developers to invest in utility-scale battery storage would further improve resilience. BIG ARUN: The 900MW Arun III project under construction since 2018 at Num in Sankhuwasabha (pictured, below) is a separate initiative by a different project developer using a different financing modality. The ‘Baby Arun’ version of Arun III was cancelled in 1995.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb.jpg" data-media-id="editor_7" data-image-id="20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb" data-rendition-name="original" width="1750" height="1312" loading="lazy" alt="30 Years after Baby Arun"> </figure>

original

674x448

610x380

500x500

400x266

400x240

400x203

301x200

1250x600

1084x550

thumbnail

viewImage

People Power

30 years after Baby Arun

High tech firms are power hungry, and the <a href="https://nepalitimes.com/here-now/those-who-stay">climate crisis</a> is driving them to seek <a href="https://nepalitimes.com/opinion/nepal-can-lead-in-zero-carbon">renewable sources of energy</a>. Nepal’s surplus electricity generation capacity coincides with this surge in global demand to power generative AI data centres. Data centres have become major drivers of electricity demand globally in the last two years, but the lack of <a href="https://nepalitimes.com/here-now/nepal-s-electric-transport-future-is-here">clean energy</a> remains a major hurdle to expansion. Along with coverage area and number of racks, a key parameter to measure use of <a href="https://nepalitimes.com/opinion/comment/tech-and-transition-in-nepal">information technology </a>in each country is the amount of power they use1 for data centres. For example, the US currently uses 50MW of data centres per million people compared to just 1MW in India. In Nepal, investment in data centres have just begun. About 1.5% of global electricity is currently going to power data centres and data transmission. Improvements in IT hardware, efficient cooling methods, and gains from the shift to efficient cloud and hyperscale data centres have allowed growth in energy demand to remain small even as data centre services have grown significantly since 2010. After 2022 this picture has begun to break down due to the exponential growth in power requirements for <a href="https://nepalitimes.com/here-now/nepal-in-the-decade-of-ai">AI </a>which far exceeds accompanying gains in energy efficiency.&nbsp; The growth of AI applications was made possible by breakthroughs in Deep Neural Network models and hardware to run them, enabling image recognition and generation, natural language processing and many other previously<a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/it-is-all-about-it-in-nepal,3887"> ‘high-compute applications’</a> which required a lot of computational power. These advances laid the groundwork for large language models such as <a href="https://nepalitimes.com/banner/chatgpt-news-about-nepal">GPT</a>-4o (OpenAI), Claude (Anthropic), Gemini (Google), Llama-3 (Meta/Facebook), Grok (xAI) among others. The growth of large language models and generative AI has changed the role of data centres from managing content, data storage and data processing to training large AI models and running AI inference to serve user applications from those models. But training <a href="https://nepalitimes.com/here-now/nepal-bhasa-on-google-translate">AI models</a> is compute-intensive, and requires high-powered hardware. Similarly, AI inference, which involves using trained models to make predictions based on new data, also demands significant energy due to the large and increasing number of user applications served by AI models. According to Bloomberg Intelligence, growth in investment into generative AI is expected to push data-centre electricity use by 4-10 times from current levels by 2030. Companies such as Google and Microsoft are already consuming as much electricity as The Netherlands. Many of the largest companies have also made ‘net-zero’ commitments, to generate no net greenhouse gas emissions by 2050, which they are struggling to uphold due to this unexpected increase in energy demand to power data centres.Big tech is therefore sourcing power from all the clean energy sources they can find: wind, solar and <a href="https://nepalitimes.com/multimedia/missing-pieces-of-the-hydropower-jigsaw">hydropower</a>. They have even invested in nuclear power plants to power AI data centres. As demand rises, companies will be looking for new geographies with abundant clean energy. Could this new reality present an opportunity for Nepal to market its surplus clean energy from hydropower and solar? The country could promote itself as a destination for data centres, as Bhutan is doing with its Gelephu Mindfulness City. Nepal’s data infrastructure, even including NEA and Ncell Axiata data centres, is not well developed. &nbsp;The recently announced partnership between the Chaudhary Group’s BLC Holdings, and India’s Yotta Data Services to build Nepal’s first supercloud 4MW data centre in Ramkot could pave the way for private sector investment into data centres in Nepal.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250120140144_dae5f9c304943d4efb156a9930b0ca1894b2f6b915abeb6c30d510e0f246e4a5.jpg" data-media-id="editor_9" data-image-id="20250120140144_dae5f9c304943d4efb156a9930b0ca1894b2f6b915abeb6c30d510e0f246e4a5" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="NEA"> <figcaption>Distribution System Control and Data Centre of Nepal Electricity Authority (NEA) in Siuchatar in Kathmandu. Photo: SONIA AWALE</figcaption> </figure>  Yotta already runs some of the largest hyperscale data centres in Mumbai and Delhi, and this investment could allow the company to be the provider of digital services in the Subcontinent’s high growth IT sector. To catch up with per capita IT services at the level of India, Nepal would need seven more Ramkot-sized data centres using about 30MW of power. With its readily available clean energy and proximity to large population centres in Northern India and Bangladesh, Nepal could in theory provide the compute infrastructure necessary to power the future AI training and inference services for local applications and markets.&nbsp; To provide IT services at the level that the US population currently consumes, Nepal would need 1,500MW of power just to power data centres for its own needs. While this is unlikely to happen anytime soon, Nepal could opportunistically provide data centre services for the upcoming AI needs of some of the 500 million people living in the Ganges basin. India is already a regional powerhouse in data centres and has about 1,600MW of capacity, and generative AI is estimated to push computational requirements with power needs expected to grow between 25-30% each year through to 2030. With the right investment climate, and the necessary investment into fibre optic infrastructure and IT parks, Nepal could leverage its plentiful power supply advantage to offer locations for a portion of this investment.&nbsp; This would provide a much needed boost to Nepal’s ongoing efforts to establish itself as a technology hub and provide jobs to the 15,000 IT professionals that are being trained in the country each year. Data centres are one part of a larger technology ecosystem. AI model training and maintenance require skilled expertise in every industry from finance, to train fraud detection models, to healthcare, to label X-ray and MRI images and test results and diagnostic data to build intelligent medical tools, and to the legal sector, to supervise generated contract documents. NTC’s recently installed XGPON network standard that can deliver up to 10 Gbps downstream speed and 2.5 Gbps upstream does provide the basic level of connectivity needed for AI applications, but it is only available in Kathmandu and needs to be expanded to other urban centres. Nepal’s investment climate for private companies remains far from ideal, and government regulations need to be relaxed to allow global companies and non-resident Nepalis to bring in investment to take full advantage of this new <a href="https://nepalitimes.com/business/digital-connectivity">digital infrastructure</a>. Amrit R Pant contributed with AI expertise while writing the article. Bikash Pandey is Director of Clean Energy and Circular Economy at Winrock International. People Power is his regular column in Nepali Times on global energy issues relevant to Nepal.

Bikash Pandey

Nepal as an AI power bank

As a micro-hydro engineer working in rural Nepal in the mid-1980’s, I struggled to find money to build power plants that could meet the energy demand along the Everest and Annapurna trekking trails. Communities in Lukla, Namche, Jomsom and Ghandruk needed energy to meet basic needs of trekkers, and provide value-added services for additional income. Tourists were prepared to pay for hot showers, cold beer, clean beds, and a varied menu. But resource limitation meant there were fewer and smaller power plants. The national electricity grid was then limited to urban areas and the country’s electrification rate was low and stayed below 20%. The Nepal Electricity Corporation (NEC) , the predecessor of NEA, had constructed a dozen small hydro projects for remote districts with no immediate prospects of being supplied by the grid.&nbsp; Some of these were in tourist areas but were woefully inadequate to supply more than domestic lighting load. The 240 kW Chokhopani small hydropower project, commissioned by NEC in 1984, to supply the Thak Khola region of Mustang, was overloaded within a couple of years of its construction after tourist lodges in Tukuche, Marpha, and Jomsom began plugging in electric space heaters and hot plates. Following the 1984 delicensing of generation from power plants of less than 100kW capacity, Nepal saw a dramatic surge in interest from rural communities to invest in <a href="https://archive.nepalitimes.com/page/micro-hydro-in-nepal-affected-by-the-spread-of-national-grid" target="_blank">micro-hydropower</a>. While smaller systems could meet the needs for power for home lighting and tv sets in non-tourist areas, communities along tourist trails wanted larger power plants to cook and heat with electricity and run refrigerators. The <a href="https://nepalitimes.com/banner/municipalities-want-to-manage-annapurna" target="_blank">Annapurna Conservation Area Project (ACAP)</a> provided a grant to cover 70% of the cost of the 50kW Ghandruk project. Completed in 1990, it was designed to supply 250 households and 20 hotels. However, to make sure there was sufficient power to connect the whole community, each hotel was limited to a subscription of one kW of power — not enough to meet cooking needs.&nbsp; The hotels were encouraged to turn on immersion water heaters at night to speed up cooking in the morning. Recognising that micro-hydropower projects could only partially supply their energy needs, ACAP also helped hotels install solar hot water systems for showers and import LPG for cooking. The 600kW Thame project in the Everest region was completed in 1995 with a grant from the Austrian government to supply 629 homes and tourism businesses of Namche Bazar, Khumjung and Thame. For the first time in Nepal, it was able to demonstrate how much value an abundant supply of electricity could add to mountain tourism. Electricity reduced pressure on scarce, high altitude biomass and provided an alternative for families that were caught between strict rules prohibiting firewood collection from the Sagarmatha National Park, and the need of increasing numbers of trekkers, guides, and porters.&nbsp; Electricity was used in place of firewood not only by hotels and cafes, but also in the kitchens of 60% of the households. Electricity from the Thame power plant allows Namche Bazar today to meet the fuel needs of more than 40,000 trekkers a year, double the annual visitors when it was built 30 years ago. The electricity supply also opened up new livelihood opportunities. Stores selling handicrafts and climbing gear, tea shops, pubs, restaurants, lodges, laundromats, cyber cafes, jacuzzi, water treatment and bottling plants, and three electricity-powered bakeries, and pizzeries all came up.&nbsp; Another early benefit from Namche’s electrification was the improvement in water supply because it could now be pumped up from a spring to a reservoir with slow-sand filtration at the top of the village. Piped water supply from the reservoir and a sewage system, also managed by the power utility, Khumbu Bijuli Company, allowed hotels to offer rooms with attached bathrooms with hot showers and charge significantly higher for rooms.&nbsp; Other electricity-enabled infrastructure include cell phone towers, of which Namche has two, and the potential for cable cars to take visitors to viewpoints and ropeways to transport goods.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241124101136_12b9599800b353fbc6fbefe1a8b69f2d83bb09c0b19e47d664edb9de3f9ea6d3.jpg" data-media-id="editor_2" data-image-id="20241124101136_12b9599800b353fbc6fbefe1a8b69f2d83bb09c0b19e47d664edb9de3f9ea6d3" data-rendition-name="original" width="2039" height="1000" loading="lazy" alt="Nepal can level up tourism with electricity NT"> </figure>  Since the earliest days of trekking tourism, the environmental carrying capacity of the local ecosystem has been limited by the availability of energy. Without access to commercial energy from the outside, the number of trekkers, and their accompanying support teams, that any region can host depends on the rate at which trees can regenerate there.&nbsp; High altitude areas like the Khumbu face a natural limit based on the slow rates at which trees can grow. Arid trans-Himalayan regions like Upper Mustang and Dolpo can sustainably harvest even less biomass. The government continues to restrict tourism areas in the trans-Himalaya, with fragile ecosystems, requiring foreign visitors to pay for permits.&nbsp; Trekking groups are required to carry their own fuel to avoid strain on the local ecosystem. In Upper Mustang the number of visitors is limited to 1,000 annually and requires each visitor to pay a $500 fee for a ten day visit. Other restricted areas include border communities in Humla, Gorkha, Dolpo, Manang, and Manaslu. Since then, Nepal’s electricity generation landscape has undergone a dramatic transformation. The country currently has a surplus from hydropower and solar energy. This is expected to keep growing for the foreseeable future. Harnessing this electricity to boost mountain tourism can enhance local livelihoods and reduce outmigration of youth. The tourism sector employs 1 million people and contributes 8% to Nepal’s GDP. In comparison, more than 3.5 million Nepalis work abroad and their remittances make up 27% of GDP. Growth in the tourism sector could significantly expand employment opportunities at home.&nbsp; Namche Bazar is proof that electricity can take mountain tourism to the next level both by increasing the carrying capacity of high Himalayan regions by substituting for biomass fuel, and increasing employment through value-added services and infrastructure development.&nbsp; Electrifying the country’s tourism sector has the potential to significantly increase its contribution to the economy, and take it closer to another tourism-powered South Asian country, the Maldives, where tourism’s share of the economy is 60%.&nbsp; Given that Nepal’s electricity is from renewable resources, any tourism it powers can also be marketed as producing minimal greenhouse gases. If tourists could be transported in electric vehicles to and from the airport and to the roadhead leading to their trekking destinations, it would further lower emissions. This is an additional selling point at a time when many environmentally conscious tourists are looking to lower their carbon footprint. The NEA can play an important role by increasing the supply, capacity, and reliability of electricity along existing, popular trekking trails. The extension of the national grid to Tilicho Base Camp last week is the right step. Even though the country’s electrification rate has now reached 99%, supply challenges remain. The task is made easier for NEA since practically all <a href="https://nepalitimes.com/opinion/people-power/decentralising-power-in-nepal" target="_blank">regions with tourism potential have hydropower projects</a> either operating or under construction within their own districts. This makes it much easier to ensure a reliable supply with good voltage. In the Annapurna region, electricity has reached nearly all communities with Ghandruk and Jomsom connected to the <a href="https://nepalitimes.com/news/nepal-electricity-demand-soars" target="_blank">national grid</a> in 2017 and 2018 respectively. However, without improved reliability of supply, tourism enterprises will continue to use firewood and imported LPG for cooking.&nbsp; In light of the damage caused by the <a href="https://nepalitimes.com/news/climate-breakdown-linked-to-thame-flood" target="_blank">glacial lake outburst flood that hit Thame in August</a>, the power supply for Namche and the region would be much more resilient if it was connected to the national grid. NEA also needs to extend transmission lines to Upper Mustang and other restricted areas that aspire to host higher tourist numbers than they are currently allowed.&nbsp; Investment in extending power supply along the 16 districts traversed by the Great Himalayan Trail would accelerate the development of green and sustainable tourism in those areas. For other tourism sites where NEA does not plan to extend the grid in the next five years, micro-hydro and solar energy will remain important solutions.&nbsp; The two 900 kW mini-hydro projects under construction to supply the villages of Ama Dablam and Monjo, both in the Everest region, are good examples of the support the <a href="http://www.aepc.gov.np/" target="_blank">Alternative Energy Promotion Centre </a>needs to continue to provide for off-grid power to support the tourism sector. Bikash Pandey is Director of Clean Energy and Circular Economy at Winrock International. People Power is his regular column in Nepali Times on global energy issues relevant to Nepal.

Nepal can level up tourism with electricity

Nepal’s national electricity grid is supplied with power from a remarkably decentralised array of 162 hydropower projects and 14 solar photovoltaic schemes spread across 43 districts, supplying power over the grid to 30 million people.
Another 249 hydropower projects and 14 solar projects are at different stages of construction, positioning 11 new districts to contribute power to the grid by 2030. Six of the country’s seven provinces generate hydropower as their main energy source, while Madhes Province generates solar energy.&nbsp;
While NEA (Nepal Electricity Authority) and its subsidiaries own and operate 20 generation stations, the remaining are owned and operated by Independent Power Producers (IPP). All but two of the IPPs are Nepali companies that have successfully mobilised over $2 billion in investment.
This investment has been spread widely across the country. Eleven districts generate more than 100MW each with Dolakha, Lamjung, Solukhumbu, and Ramechhap each exceeding 200MW (map). The average size of hydropower projects on Nepal’s grid is 15.5MW, while the average solar project is 4.2MW.
The average size of projects under construction is larger -- 39.5MW for hydro and 6.9MW for solar respectively.&nbsp;
For most hill and mountain districts, hydropower is easily the largest investment, private or public, in their history. &nbsp;
This decentralised power generation model is a relatively recent development for Nepal. In 1995 when the World Bank withdrew (adjoining article) its planned investment from the 201MW Arun III project, NEA had not envisioned the entry of the private sector. In fact, its published strategy was to mobilise international aid for hydropower projects larger than Arun III.
The well-known cancellation of Arun III in 1995 and the availability of alternative models led to Nepal's decentralised power development. It matters that this distributed generation and storage of electricity is close to the point of use.
Centralised power stations have been the norm for industrialised and emerging economies to achieve rapid and cheap electrification, taking advantage of economies of scale of large power plants.
Also in Nepal, when its vast hydropower potential was first quantified in the 1960s, plans were drawn up for mega hydropower projects with reservoirs such as Karnali, Kosi, and Pancheswar. None of these could be realised, however, due to lack of financing.&nbsp;
Donor funds could never be aggregated at the scale needed for the investments required, and the country was not attractive to the international private sector. Nepal opted not to invite India to construct its large hydropower projects to supply the Indian market the way Bhutan did.
It took the country 40 years to find its way -- generation led by private domestic investment supplemented by public sector involvement by the NEA.&nbsp;
The cancellation of Arun III resulted in the government signing expensive dollar-denominated power purchase agreements (PPA) with international producers like Khimti (60MW) and Bhote Kosi (45MW) to partially make up for the shortfall. These were against the wishes of NEA management.&nbsp;
It was in reaction to these expensive PPAs that engineers at NEA received permission to develop Chilime (20MW) with rupee-denominated PPA and the government at the time announced a standard tariff in NPR for power generated by IPPs.&nbsp;
Once NEA showed its willingness to sign these PPAs, hundreds of companies sprang up to apply for licenses to survey and construct small hydropower plants throughout the country.
Decentralised power development contributes to construction jobs and infrastructure investment, especially in remote districts where many of the best hydropower sites are located.&nbsp;
Construction of an electricity generation station provides at one go the two most important infrastructure any district needs to generate jobs — power and a road.&nbsp;
Decentralised generation provides energy security to load centres throughout the country since damage to power plants in one part of the country need not affect other areas that have their own generation. It also reduces transmission losses as large amounts of power do not have to be transported from one end of the country to another.
Nepal’s strategy of decentralised power development is coming to maturity in the era of the climate crisis, when the global response has been a surge in renewable energy investments and grids all over the world pushing to become decentralised.&nbsp;
Landslides, flooding and glacial lake outburst floods have always posed risks to infrastructure projects in the Himalaya, and climate breakdown has increased this risk with the severity and frequency of cloud bursts.&nbsp;
The 2024 monsoon has been particularly bad, temporarily shutting down NEA’s 456MW Upper Tamakosi, 60MW Upper Trisuli 3A, 40MW Chameliya, and 10MW Sunkosi projects,&nbsp;
It also downed the 36MW Balefi, 20MW Lower Modi, 18MW Middle Modi, and 7.5 MW Indrawati III operated by IPPs.
Nonetheless, there has not been any increase in load shedding because power plants across other river basins continued to generate without interruption.&nbsp;
Having power plants spread across two thirds of the country rather than concentrated in a few river valleys distributes the risk to the country’s entire power supply.&nbsp;
Adding solar energy to the generation mix diversifies the types of renewable energy available and contributes to power in the winter months. It also makes the grid more secure during periods of drought when hydropower production declines.&nbsp;
Solar energy is a perfect complement to hydro since by definition its production will peak during periods with low rainfall.
Distributed generation is shaping up to be an important component of Nepal’s decentralised energy system. This increases energy security to users and reduces transmission losses.
The roughly 10MW of rooftop solar PV systems that have been installed in the past year by hotels, factories, medical colleges and flour mills to reduce their electricity bills is an example of how it is catching on.
Decentralised and distributed generation do have additional costs in the need for more extensive power networks. Extending high voltage transmission lines to evacuate power from smaller local projects adds cost.&nbsp;
However, every power plant and the transmission line to access it has aided Nepal in accelerating electrification and strengthening power infrastructure to the district where it is located.
As networks become more complex, utility-scale battery storage, and the availability of distributed storage in electric vehicles, the grid needs to be made smarter to better manage the tens of thousands of generation and storage points Nepal is likely to have in the coming years. &nbsp;
Bikash Pandey is Director of Clean Energy and Circular Economy at Winrock International. People Power is his new regular column in Nepali Times on global energy issues relevant to Nepal. &nbsp;

Decentralising power in Nepal

Nepal has had an impressive growth in hydropower development over the past decade from 734MW in 2014 to a combined capacity of 2,625MW from solar and hydropower stations, with 95% of households connected to the grid. Investment to the tune of $5 billion, predominantly in domestic NPR, is estimated to have gone into new generation projects in this time to complete construction and invest in some 8,000MW of new power plants that are at various stages of design and construction. It is certainly reassuring to a population still suffering PTSD from years of brutal load-shedding to realise that Nepal is headed for long term power surplus, with prospects in 2024 for the first time to export more power than import from India, if the monsoon cooperates. One important question in a lot of people’s minds, however, is how Nepal’s generation of clean energy compares with the fossil fuel Nepal continues to import at an annual cost of almost $3 billion, and growing. Are we anywhere close to generating the hydropower and solar energy needed to replace the petroleum fuel that Nepal imports? At first glance it looks like the gap is discouragingly large. NEA sold just over 10 billion kWh or 10 TWh of electricity in 2023. In the same year, all the petroleum-based fuels the Nepal Oil Corporation (NOC) imported had a total energy content of 40TWh. It would seem that NEA and Independent Power Producers (IPPs) would need to complete construction of the full pipeline of 8,000MW on top of what they are already generating to match even the petroleum fuel we use today. Fortunately, electricity can be used more efficiently than fossil fuels. An LPG stove has a thermal efficiency of around 50%, reflecting the percentage of heat from burning the mix of propane and butane that is transferred to the pot. The rest goes into heating the burner, the counter-top, and the rest of the kitchen. An induction cooker on the other hand is able to transfer around 90% of the energy directly to the pot since the cooking surface does not even get hot itself. So, cooking with electricity can be accomplished with 45% less energy compared to LPG with the use of an efficient appliance.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240802120856_d0349977d5fb14944e7897b9bd8bad605348f6d9351fcc70a2e6cc7a178bc8dc.webp" data-media-id="editor_0" data-image-id="20240802120856_d0349977d5fb14944e7897b9bd8bad605348f6d9351fcc70a2e6cc7a178bc8dc" data-rendition-name="original" width="992" height="1245" loading="lazy" alt="Nepal turns on the electric switch NT"> <figcaption>INDUCTION STOVES: 90% of the energy in induction stoves is transferred directly to the pot, so cooking with electricity uses 45% less energy compared to LPG. PHOTO: CLIMATE AND CLEAN AIR COALITION</figcaption> </figure>  The end-use efficiency advantage is even more impressive when it comes to transportation. A petrol burning internal combustion engine converts only 20% of the energy the fuel produces into motion. The remaining 80% of the energy content of the petrol is lost as heat in the engine, requiring a radiator to keep the engine from overheating. An electric vehicle on the other hand uses high efficiency motors that have conversion efficiencies in the range of 80-85%. Even with the 20% ‘round trip’ losses in charging and discharging the battery, an EV uses less than a third of the energy to drive a kilometre than an equivalent petroleum fuel vehicle does. Since close to 95% of the petroleum fuel imported into Nepal is used to meet either road transportation or cooking needs, it is very encouraging that appliances already exist in the market for Nepal to transition away from petroleum fuel. Similar efficiencies exist for switching away from diesel irrigation to electric pumps and for a range of industrial processes to switch from using different fossil fuels to electricity. For the consumer to switch over to electric cooking and electricity-fueled transportation, the relative prices of each energy type are important, along with the improved efficiency. Here too the news is promising: NEA’s applicable domestic electricity tariff for users wanting to cook with electricity for cooking or charging EVs at home is a maximum of Rs11 per kWh. This compares with Rs18.5 per kWh of petrol and Rs9.83 per kWh of LPG. Once the thermal efficiency is taken into account, however, the effective price of petrol and LPG go up to Rs55.50 and Rs17.87 respectively for driving the same distance or cooking the same volume of food as one kWh of electricity. Two final barriers must be removed before consumers will be able to make the switch to efficient electric vehicles and cooking appliances. First: NEA must invest in strengthening transmission and distribution networks. It is not enough for there to be sufficient hydropower and solar energy generated if the power lines and transformers are not sufficiently sized to distribute the additional electricity needed for switching to electricity. Second: end-users must be able to afford EVs and cooking appliances. The government and banks have an important role to play in making this transition happen. The government needs to appreciate the tradeoff: provide tax incentives for people to purchase EVs and high efficiency electric appliances that can replace petroleum. Banks need to provide financing for users to be able to purchase EVs and appliances and pay for them from the savings in fuel. The good news is Nepal is very close to generating enough electricity to replace petroleum imports. Making up for 40TWh of petroleum fuel will likely require less than 20TWh of electricity. Extrapolating from the rate of growth of hydropower and solar generation over the past decade, Nepal could have sufficient clean energy projects online to be generating 30TWh as early as 2028. &nbsp; Bikash Pandey is Director of Clean Energy and Circular Economy at Winrock International. People Power is his new regular column in Nepali Times on global energy issues relevant to Nepal.

Nepal turns on the electric switch

Nepal has shut down dozens of social media platforms in a move that is widely seen as an effort to tax the revenue they generate in the country, and to control content critical of government. The sites were blocked as of midnight on Thursday, 4 September and affects all Meta products including WhatsApp and Messenger, Threads, and others. Although YouTube, Google and X are also on the government’s list, they were still working as of Friday midday.&nbsp; The government says it took the action after repeated warnings to the platforms to open offices in Nepal, a Cabinet decision last month setting a deadline, as well as a 17 August Supreme Court ruling also requiring them to register and pay requisite taxes. However, the Bill cited in the ban, ‘The Operation, Use, and Regulation of Social Media in Nepal’ has not yet been passed by Parliament. Some social media platforms which were already paying taxes in Nepal even though they are not officially registered, have also been blocked. The move is the latest in <a href="https://nepalitimes.com/news/big-beautiful-bills" target="_blank">a slew of draft legislations</a> designed to undermine Nepal’s open society. A Bill amending the Print and Publications Act would allow district bureaucrats to shut down media. Another draft Bill would allow political appointees to head a new Media Council with the power to revoke the licenses of journalists.&nbsp; A counter-intelligence Bill would let just about anyone in government to arbitrarily tap phones, read emails and trail citizens. On Wednesday the government announced new immigration requirements that would allow it to track the movement of all foreigners in the country. Yet another draft Bill has been set to Parliament to dissolve the <a href="https://archive.nepalitimes.com/news.php?id=10675" target="_blank">Social Welfare Council (SWC)</a> and move registration and monitoring of non-governmental organisations, nonprofits and charities to the Ministry of Social Welfare. Seen in this light, the blockage of social media platforms this week is seen as the latest government attempt to constrict freedom of press. Nepal is one of the few remaining open societies in Asia, and now appears to be drifting towards authoritarianism. The government’s sudden shutdown of social media has been greeted with howls of protest on platforms that still remain open, like Viber and TikTok, as well as in Nepal’s mainstream press. Even senior members of the ruling UML-NC coalition have sharply criticised the move, asking if the government is trying to “turn Nepal into North Korea”.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025090508098_a2ab330e403e8418a7006cd5e915607382628dd6984524332bf7b99c74743656.jpg" data-media-id="editor_2" data-image-id="2025090508098_a2ab330e403e8418a7006cd5e915607382628dd6984524332bf7b99c74743656" data-rendition-name="original" width="4280" height="5187" loading="lazy" alt="social media ban in Nepal"> </figure>  The Regional Director of the New York-based Committee to Protect Journalists (CPJ) Beh Lih Yi said in a statement: ‘Nepal’s sweeping ban on social media sets a dangerous precedent for press freedom. Blocking online news platforms vital to journalists will undermine reporting and the public’s right to information. The government must immediately rescind this order and restore access to social media platforms, which are essential tools for exercising press freedom.’ Besides undermining press freedom, blocking social media platforms will also hurt commerce and the economy since so many small and medium business trade through Instagram, Facebook and other platforms. Nepal’s vibrant social media has also been a boost or citizens to assert identity, build solidarity against injustice and play an adversarial role when the mainstream media does not do it. Social media platforms have also become the tenuous link for Nepali families scattered across the world to keep in touch with each other — its importance growing with the increasing size of the diaspora. The government wants social media platforms to register, pay taxes and remove posts on their sites that ‘undermine the national interest and Nepal’s territorial integrity, disturb social and religious harmony’.&nbsp; In response, rights activists have said while there is need for the government to regulate extreme content and hate speech, officials appear to be more intent on clamping down on free speech and trying to force platforms to share the revenue. On Friday, the government had allowed WhatsApp back online, but there were reports that it had instructed the Nepal Telecommunication Authority (NTA) to instruct mobile and internet service providers to block by Friday night all platforms, including Facebook, Instagram, Messenger, WhatsApp, X (Twitter), YouTube, LinkedIn, Reddit, Threads, Snapchat, Pinterest, Signal, Clubhouse, Rumble.&nbsp; Platforms that have registered and are allowed include TikTok, Viber, Nimbuzz, Popo Live, WeTalk, Global Diary and the Nepali portal Hamro Patro. TikTok was banned last year for ‘disturbing social harmony’ and it was lifted after the platform registered its office in Nepal. But even while it was banned, many users simply switched to VPN. Telegram was also banned for ‘financial crimes’ and it has since also been allowed back. NTA officials confirmed that some Asia-Pacific regional offices of platforms, including Meta had been in touch overnight inquiring about the registration process.&nbsp; Nepal is not alone in regulating social media. China bans most Western platforms, Russia and Turkey regulate their and require platforms to locate their data servers in the country. Gulf countries allow social media but keep a tight control on dissent.&nbsp; Experts have said even the government will not dare close down YouTube since so many Nepali individuals and companies make money with posts on that platform, and closing it would also impact on Google and Gmail. Facebook had also just launched a monetisation scheme for videos and reels, and Nepalis uploading content would lose revenue.&nbsp; Blocking the platforms has already hit content creators, influencers and cut small businesses from reaching customers. A survey of social media use in Nepal by Sharecast Initiative showed that 94% of those with smart phones used YouTube, followed by Facebook (92%) while TikTok was in the 50-60% range. X and Instagram were in the single digits. A YouTube ban will also hurt the mainstream media since up to 20% of the revenue of Nepal’s main tv channels came through YouTube. Some 11.1 million Nepalis watch YouTube content every day, the survey showed. ‘For global giants like Meta or Google, Nepal is a small market, and they may not even flinch — but for millions of Nepalis, these platforms are central to daily life, livelihoods, and connections across the world,’ wrote AI consultant Naresh Newar in a LinkedIn post. Some experts said the government’s sweeping ban on social media networks was untenable and the government would be forced to rollback sooner or later. Said editor Shiva Gaunle: “The platforms had given citizens a voice and broken the monopoly of the government, legislators, the courts and journalists over public opinion. This is an effort to reassert that monopoly, but Nepal can never be turned into a North Korea.”

Protest grows against Nepal’s social media ban

<a href="https://www.youtube.com/watch?v=x2fZXyjsE28" target="_blank">Yog Narendra Malla</a> became king at age 18, and ruled Patan from 1684-1705 — his reign marked by a cultural and architectural renaissance of the city state. He put up a statue of himself in the palace square with a little bronze bird sitting on the guardian serpent above his head. It is said he told his subjects that he would look after their welfare till the day the bird flew off. During<a href="https://nepalitimes.com/here-now/lessons-not-learned-from-2015-o2etq6zu"> the 2015 earthquake</a>, the pedestal collapsed and the statue was damaged. The bird was lost, only to be located in a pile of debris and reinstated when the <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/piece-by-piece-patan-darbar-square-reconstruction,3782" target="_blank">statue was consecrated</a> two years later. <div class="embed-block"><iframe width="560" height="315" src="https://www.youtube.com/embed/x2fZXyjsE28?si=jYfIb4p6zCLXYQ1T" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe></div> History remembers Yog Narendra Malla as a wise king, but like most<a href="https://nepalitimes.com/here-now/preserving-king-birendra-s-family-home"> royalty of the day</a>, he had a weakness for women. He is supposed to have consorted with 30 queens and numerous concubines. At least 33 of them self-immolated themselves on the king's funeral pyre when he died, adhering to the prevailing <a href="https://archive.nepalitimes.com/article/review/Jhola,947">practice of sati</a>. When Yog Narendra Malla’s favourite queen found out that he was carrying on with yet another woman, she got the local community of the Kwelachhi neighbourhood to stage a shadow sex play to quite literally expose his unfaithfulness. Actors enacted the explicit exploits of the king and his mistress, a bright butter lamp projecting the moving shadows of their lovemaking on a thin white drape to entertain those gathered in the square below. The queen made sure that the show was designed to face the home of the king’s paramour to shame them both. She also paid for a group to chant a bhajan with lyrics that ridiculed the king’s extramarital affair. The Jhyalcha Guthi community trust that the queen set up three-and-half century ago is still active to this day, and performs the annual shadow play in the same building in Kwelachhi the day before <a href="https://nepalitimes.com/banner/the-legend-behind-the-myth-of-indra-jatra">Indra Jatra </a>every year. This year’s show is on Friday evening, 5 September. The opening lines of the chants that accompany the play are the same words approved by the queen all those years ago: “Raja Yog Narendra ya aparadh…” (King Yog Narendra’s crime…) The community leader of the Kwelachhi neighbourhood, 62-year-old Baburaja Awale, explains the importance of the event: “This Jhyalcha is our<a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/saving-the-intangible,3303"> intangible heritage</a> and oral history. We do not have a written format, it has been passed down from generation to generation. Every word of the bhajan is the story of King Yog Narendra Malla.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250904070952_249e85b32cbd99bb8515151557e0ec1a65d44a34ef1aacabaaeb469622d12664.jpg" data-media-id="editor_8" data-image-id="20250904070952_249e85b32cbd99bb8515151557e0ec1a65d44a34ef1aacabaaeb469622d12664" data-rendition-name="original" width="1750" height="1167" loading="lazy" alt="Sex and the city of Patan"> <figcaption>The statue of Yog Narendra Malla being reinstated after it toppled in the 2015 earthquake. Photo: GOPEN RAI/ NEPALI TIMES ARCHIVE</figcaption> </figure>  Jhyalcha Pyankha, as the ceremony is called, starts with a puja for the Bhimsen — the god of wealth and prosperity, a popular <a href="https://nepalitimes.com/here-now/the-homecoming-of-nepal-s-gods">deity in Patan</a> who has a temple dedicated just to him in the palace square. This is immediately followed by a bhajan of Bhairab performed with <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/Buzz-house,670">traditional Newa musical instruments</a>. Community members serve snacks consisting of samay baji beaten rice, water buffalo chunks, soybean, green veggies, lentils, ginger, garlic and aila liquor. “In the first act of the shadow play, the man initiates the lovemaking, and in the third it is the woman,” says Laxmi Lal Awale, also a member of the trust that organises the show. The shadow action is all uncensored, but interspersed with <a href="https://nepalitimes.com/review/between-the-sacred-and-everyday">scenes of everyday life</a>: the woman is spinning a thread, the king is going about his royal chores, and the two sit down to share sanacha fermented pickle that is popular this time of year. <div class="embed-block"><iframe width="560" height="315" src="https://www.youtube.com/embed/qZ3twuG1wNQ?si=yRfkoC3A-X9cIl8r" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe></div> “Back then, there was no tv, films or YouTube, and yet we managed to stage the shadow play using our own resourcefulness,” says Baburaja Awale. “It is important to continue the tradition.” The challenge now is to ensure that the<a href="https://nepalitimes.com/opinion/the-reign-of-the-god-of-rain"> younger generation takes over</a>, learning the lyrics of the ancient bhajan. The dafa khala group that performs all over Patan during festivals and religious events is now training teenagers to play the musical instruments and act in the shadow play. The Jhyalcha was staged even after the 2015 earthquake when the falcha where the bhajan is performed collapsed and they made-do in a tin shed. The structure was later rebuilt with a grant from the group, Photo Circle. Lalitpur Metropolitan City sets aside a budget of Rs50,000 to organise the Jhyalcha Pyankha every year, but this is not enough and is supplemented by individual donations. The performers including musicians and actors are all volunteers, and take part in it because it is their community duty. The erotic shadow play was way ahead of its time, not just in its graphic content but the use of contemporary local technology as well as improvisation and pure imagination. Says Laxmi Lal: “Whatever its origin in the legend of King Yog Narendra Malla and his queen, Jhyalcha also served as a medium of <a href="https://nepalitimes.com/here-now/lets-talk-about-it">sex education</a>. In the past, women were discouraged from watching the shadow play, but today everyone is welcome, we all watch it together.” Jhyalcha Pyankha Kwelachhi, Chyasal, Patan 7PM onwards Friday, 5 September

Sex and the city of Patan

Unlike many countries, there is not much incentive in Nepal for the private sector to fund charities and non-profits. Donations and grants are not tax-deductible.
Yet there are corporate entities that have Corporate Social Responsibility (CSR) in their portfolio of activities through foundations that they have set up. Some do it loudly to gain public relations mileage, while others are quiet about their <a href="https://nepalitimes.com/opinion/comment/norway-supports-himalayan-climate-research?mdrv=www.nepalitimes.com&amp;=1">generous support</a>.
The CSR outlay of factories and manufacturing companies is regulated by Industrial Enterprise Act (IEA), while the Nepal Rastra Bank oversees grants banks and financial institutions contribute and requires them to set aside 1% of their net profit for CSR activities.
The guideline requires banks and financial institutions to donate to activities covering education, health, environment and financial literacy, among others. Recently, the Supreme Court directed the government to formulate a Bill in the parliament to standardise and regulate the private sector’s CSR activities.
“We receive guidelines from Nepal Rastra Bank and follow them,” says Pranisha Shrestha who heads the CSR Department at NMB Bank. “We have got a notice about updates on those guidelines, and we will adapt accordingly.”
<a href="https://nepalitimes.com/news/greening-nepal-s-tourism">Environmental sustainability </a>is one of the important components of CSR for Nepali companies, and there have been many initiatives aimed at urban renewal. One of the most visible is of the telecommunication company Ncell, which is among Nepal’s largest taxpayers.
Five years ago, Ncell adopted a 6km stretch of the Ring Road from Ekantakuna to Koteswor-Kalanki, planting 12,000 saplings. They have now grown into<a href="https://nepalitimes.com/opinion/seeing-the-forest-and-trees-in-nepal"> a thick forest</a> along the embankment of the road.
Not only is the lush greenery in an overbuilt part of Lalitpur soothing to the eye, it also helps in reducing temperature within <a href="https://nepalitimes.com/news/in-the-heat-of-the-moment-5xcycyot">the urban heat bubble</a>, and also contributes to reducing air pollution and traffic noise.
“We started a pilot project along 600m of the Ekantakuna section of the Ring Road during the pandemic,” recalls Bishakha Lakshmi Khadka, Director of Corporate Communications and Sustainability at Ncell. “It went really well, and after that we extended the<a href="https://nepalitimes.com/here-now/saving-cities-with-trees"> tree planting</a> and upkeep to Kalanki.”
Sustainability also means making younger Nepalis aware of <a href="https://nepalitimes.com/banner/natures-fragile-gift-to-nepal">the value of nature </a>and environmental sustainability, which is why Ncell has also undertaken a Green School initiative in and around Kathmandu Valley. Besides its One-Tree-One-Youth and 1 Million Trees campaigns, the initiative also aims at behavior change about littering with its waste hackathon in schools.
“The young students can be catalysts with a multiplier effect beyond their schools to society at large, and it has inter-generational impact into the future,” explains Khadka.
Indeed, while <a href="https://nepalitimes.com/banner/tree-mendous">Nepal has doubled its forest cover </a>in the past 30 years to 46% of the country’s area, urban centres like Kathmandu do not have much open spaces and greenery left. And that is where companies like Ncell, Jawalakhel Group of Industries, and others have focused on CSRs.
NMB Bank also runs financial literacy programs for youth where they can learn more about social media safeguards, digital payment systems, with a focus on safety and security. Such training not only helps build skills for the future but also protects young Nepalis from online crime.
“<a href="https://nepalitimes.com/opinion/protecting-children-from-anti-social-media">Threats to young minds through social media</a> use are growing as platforms feed algorithm-driven content,” says Shrestha. “We felt media and digital literacy are important in all seven provinces not just to protect young people, but also give them the confidence to use digital financial systems.”
The bank has a special focus on women in leadership programs, and provides scholarships provided in schools across Nepal on environment and sustainability in higher education. Health is another sector where private companies have worked with donating medical equipment, sponsoring health camps and conducting blood donation drives.
CSR or PR?
Other companies heavily involved in CSR include NIMB Bank which contributes to heritage conservation and education, Buddha Air helps farmers in Morang to increase productivity, VOITH with its motto ‘Little things We Do’ provides scholarships to students and has gifted &nbsp;vehicles to hospitals and nature conservation groups, Dwarika’s Hotel promotes organic farming and zero waste initiatives, heritage conservation and helps revive traditional handicrafts.
Although some CSR activities have been criticised for masquerading as PR and for greenwashing, many Nepali companies are actually contributing to improve the situation for individuals in need and underserved communities.
It also brings a sense of accountability to the corporate sector so they look beyond shareholder profit with greater involvement in the public good. In Nepal, where government delivery mechanisms are not up to speed in the social sector and environmental sustainability, CSR is a vehicle for public-private partnerships.
Collaboration with the government is an important aspect of these initiatives since that allows localised campaigns to be scaled up by showing what is possible. For example, the three Metropolitan Cities of the Valley and other private companies are trying to emulate what Ncell has achieved on the Ring Road.
“The Ring Road plantation project has been massively successful,” says Khadka “We were recognised by the Lalitpur Metropolitan City and the Forestry Department for adding greenery to what would have been just an asphalt strip.”

Corporates responsible to society

This is the 72nd episode of Diaspora Diaries, a Nepali Times series in collaboration with Migration Lab providing a platform to share experiences of living, working and studying abroad. My father ran a store and that is where I spent all my time till Grade 6. Doing my homework. Serving customers. I then moved to my maternal grandparents’ house because I used to get along with my cousin who was a year older than me. We did everything together, and were best friends. We took turns studying: I was a night owl, and he was an early riser. Before I went to bed after studying all night, I woke him up. My mother was 44 when I was born, the same year my eldest brother got married. My sister-in-law becoming a part of our family was how my mother referenced my age. I liked making money, and was always a hustler. In Grade 7, I learnt to handle a tractor and helped my brother-in-law to plough, earning Rs10 a day. As I got better, he paid me more. By Grade 9, I was already making Rs500 per day, but had to slow down to prepare for my exams. From an early age I knew I did not want a 9-5 job. There just wasn’t enough money in it. I wanted to get into business, and compared my brother who worked in the post office and what businessmen made. It did not help that my brother was honest, and never took bribes. A friend and I made money selling cheap Chinese phones at a premium to our friends. We blasted music on the phones and pretended that we were giving them a discount. After SLC, I started teaching math and other subjects. I was soon a shareholder in the same school and in the evening I was involved in our family’s floriculture business, growing amaranth and marigold for garlands.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020844_1b54b999d67122a50c4c7e6204cc737bcc99bf2a68db6499a4566a7f61a880b4.jpg" data-media-id="editor_0" data-image-id="20250831020844_1b54b999d67122a50c4c7e6204cc737bcc99bf2a68db6499a4566a7f61a880b4" data-rendition-name="original" width="955" height="1314" loading="lazy" alt="Diaspora Diaries 72"> </figure>  It was then that a friend suggested we learn the Korean language. We could be earning significantly higher in Korea for similar efforts. I had no plans to go abroad but he convinced me. I did not know anything about Korea, and was scolded at the language institute when I asked someone to point Korea on the map.&nbsp; It was only there that I learnt you had to pass an exam for the Korean Employment Permit System (EPS), and pay for language classes. After a week, I decided it was not for me and dropped out. But my friend convinced me to give it one more try. I did not prepare much for the exam, and it was no surprise that I failed. But it was just by one mark, and people would pity me for failing “just by one mark”. It was a brand of failure. It hurt my ego. I had to turn things around by taking the exams seriously, and locked myself up to study hard.&nbsp; Even when we had visitors, my wife told them I was not home. If I was not in my room learning Korean, I would be with a group of ten of us test-takers comparing notes and practicing late into the night. The exam was difficult, but this time I passed, the only one in my group who did.&nbsp; As someone who never liked the idea of doing a job, I still had my doubts about going to Korea. It did not help that one of my acquaintances had returned a month after he had left, and he discouraged me from migrating given that I was already making good money in Nepal.&nbsp; But my wife suggested that I give it a shot since I had worked so hard for it. And if it really turned out not to be my cup of tea, I could always return. What did I have to lose, I thought, at least I would get to visit Korea. My job there was in an electrical company that made circuit boards. I worked all day, earned good money. In the evenings, I kept myself busy with my real estate business back in Nepal. I had learnt the tricks of the trade from fellow real estate agents back home, but at the time did not have the capital to invest.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020848_941e961e2045058f255ad89884b51faa7d2365c68236e5cbe573d63d769ac6c5.jpg" data-media-id="editor_1" data-image-id="20250831020848_941e961e2045058f255ad89884b51faa7d2365c68236e5cbe573d63d769ac6c5" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Diaspora Diaries 72"> </figure>  In Korea, it helped that I had salary records that allowed me to get loans from financial institutions both in Korea and in Nepal. Ultimately, I started earning more from my real estate deals in Nepal than from my job in Korea. This was all thanks to my ability to take loans because of the EPS scheme. My wife has been managing the flower business while I was away. My finances grew stronger over the eight years I was in Korea. I paid off the loans that I had borrowed to buy land. But real estate did not satisfy me entirely. I wondered: what is my brand? What will I be known for? What is my contribution to society? Real estate is for wealth, but that is about it. I needed to sell one piece of land and use the revenue to start a venture. I took classes in business, and returned to Nepal six months ago and got back to my family’s ancestral roots in floriculture. In Nepal too, I am continuing the entrepreneurship training I had started in Korea with the Bridge International. Such exposure helps us reflect on our business such as our branding, vision, and proactive aspects like the importance of strong recordkeeping.&nbsp; I am now working to upgrade and expand my floriculture business. With a friend who is still in Korea I am building a cooling room to increase the shelf-life of flowers and other produce and set up a market in my village where others can sell their produce. Floriculture is our primary business, but it is seasonal and earns good money only during festivals like Tihar.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020848_a008ffeba13896e6918f68ff6e687c8fe11140d86a96f1ec11690547f2bcd415.jpg" data-media-id="editor_2" data-image-id="20250831020848_a008ffeba13896e6918f68ff6e687c8fe11140d86a96f1ec11690547f2bcd415" data-rendition-name="original" width="1280" height="720" loading="lazy" alt="Diaspora Diaries 72"> </figure>  So, I grow tomatoes to ensure year-round earnings. I also am engaged in other businesses like real estate and online shopping. I work round the clock in Nepal — a strong work ethic is something I picked up in Korea.&nbsp; My Korean bosses would work alongside us, that motivated us. I work just as hard in Nepal as I did in Korea. People here often ask me why I am pushing myself so hard. But making garlands comes easy to me, it is work my forebears were involved in. My childhood memories are about plucking flowers with my sister. I have a comparative advantage in this work. It comes naturally to me, it is easy and I enjoy it. And sometimes, if there are too many garlands to make, I can multitask while holding meetings. My fingers just fly. I am good at this job, but my wife is even better and faster.&nbsp; When there is too much load, we can also outsource the work. To be known as the flower guy would be great personal branding. The मखमली guy. Or the सयपत्री guy. I decided to come home for just this with a one-way ticket. “अब पासा: जाँदैन ल्हासा!” &nbsp;