A high-level meeting between the energy secretaries of Nepal and India last month agreed to build six high-voltage cross-border transmission lines to facilitate the export of up to 18,000MW of electricity by 2035. The government’s recently-approved Energy Development Roadmap and Action Plan envisages exporting 15,000MW to India and Bangladesh within the decade, and generating 28,500MW by 2035. At present Nepal has agreements to export 941MW to India and 40MW to Bangladesh. <a href="https://nepalitimes.com/news/blueprint-for-nepal-india-electricity-trade">Exports to India </a>happen only during <a href="https://nepalitimes.com/news/monsoon-deluge-in-nepal">the monsoon </a>when there is <a href="https://nepalitimes.com/here-now/an-energy-windfall-for-nepal">surplus energy</a>, and <a href="https://nepalitimes.com/from-the-nepali-press/more-than-half-of-nepal-s-electricity-imported-from-india">Nepal imports power</a> during the dry season. This month, Nepal is generating only one-third of its installed capacity of 3,400MW because of low river flows.&nbsp; Generation will exceed 4,000MW by year-end, and another 3,906MW of projects are under construction with more projects worth 3,899MW in the pipeline after <a href="https://archive.nepalitimes.com/news.php?id=10871">power purchase agreements</a>.&nbsp; That Nepal is now capable of generating and exporting <a href="https://nepalitimes.com/here-now/nepal-s-precious-electricity-going-waste">surplus electricity</a> has been seen as a significant development for a country that was <a href="https://nepalitimes.com/here-now/how-they-kept-nepal-in-the-dark-ages">plagued by power cuts</a> for up to 18 hours daily until just eight years ago.&nbsp; In the past 20 years, many energy strategies were formed to power growth through exports. As regional countries look for <a href="https://nepalitimes.com/here-now/right-climate-for-nepal-s-energy-transition">clean energy to meet climate targets</a>, <a href="https://nepalitimes.com/here-now/nepal-s-first-hydropower-from-a-glacial-lake">Nepal’s hydropower</a> could be in high demand. Electricity exports can also help offset the country’s huge <a href="https://nepalitimes.com/news/balance-of-power">trade deficit</a> with India. <a href="https://nepalitimes.com/news/balance-of-power">Investment</a>, or the lack of it, stands as the biggest hurdle in achieving Nepal’s ambitious energy export targets. Generating 28,500MW of electricity would cost Nepal $46.5 billion — four times the annual budget. Capital investment could come from <a href="https://nepalitimes.com/editorial/home-is-where-the-heart-is-yqkvf5vx">overseas Nepalis</a>, <a href="https://nepalitimes.com/news/sacking-of-nea-chief-exposes-cronyism">the Nepal Electricity Authority (NEA)</a>, the private sector or from<a href="https://nepalitimes.com/business/green-bond-option-for-climate-finance"> ‘green bonds’</a>. But even if investment is forthcoming, there is no guarantee that the energy will find a market at an acceptable price. India has increased its quota every year to allow the NEA to sell 941MW of electricity produced by 28 projects under the competitive market and medium-term power sales agreements. It does not buy power from projects with Chinese involvement, and has a strategic monopsony status.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025032710034_ac849c5d570b132afcdb2e4ba432a423dc40bb80ad9f900e0d1a26eed1a5dbec.jpg" data-media-id="editor_14" data-image-id="2025032710034_ac849c5d570b132afcdb2e4ba432a423dc40bb80ad9f900e0d1a26eed1a5dbec" data-rendition-name="original" width="997" height="784" loading="lazy" alt="Hydrocarbon to hydropower NT"> </figure>  The country exported more electricity than it imported for the first time in 2023/24 fiscal year, selling electricity worth Rs17.06 billion to India. But this is a drop in the bucket in comparison to the country’s total trade deficit. Nepal imported goods worth Rs1.59 trillion, while exports were only Rs152 billion in the same fiscal year. The amount earned from exporting electricity was just 1.2% of Nepal’s trade deficit. While this could increase in future, it will not go up by much. As it stands, Nepal buys electricity from India at almost the same rate as it sells. Indian state-owned companies are <a href="https://nepalitimes.com/opinion/decentralising-hydro-power">developing hydropower projects</a> with a combined capacity of 8,000MW, mostly on the Arun basin. The agreements give 21.9% of the electricity from these plants for free for 25 years before they revert to Nepal. Hydropower experts have long argued that Nepal should increase domestic consumption for value added manufacturing rather than exporting raw power. This means <a href="https://nepalitimes.com/opinion/comment/securing-nepal-s-electric-future?%3D">making electricity affordable and accessible</a> for household appliances, transport and industries. To be sure, proactive government policies on tax rebates for electric vehicles have seen remarkable results. Until January of this fiscal year, Nepal imported 6,256 electric four-wheeled vehicles in comparison to 2,662 petroleum ones. Nearly 70% of all EVs sold were from China. Read also: <a href="https://nepalitimes.com/banner/blueprint-for-a-net-zero-nepal">Blueprint for a net-zero Nepal</a>, Sonia Awale&nbsp; Continuous <a href="https://nepalitimes.com/news/ev-year">increase of EV imports </a>will eventually reduce Nepal’s <a href="https://nepalitimes.com/news/nepal-s-energy-policy-in-2023-and-beyond">dependence on India for fossil fuel</a>, which currently makes up 18% of all imports and the largest item. Promoting <a href="https://nepalitimes.com/news/charging-nepal">electrical appliances </a>and manufacturing them in the country would reduce the increasing <a href="https://nepalitimes.com/here-now/what-s-cooking-in-nepal-besides-politics">dependency</a> on LPG, which is heavily subsidised. Only 0.5% of Nepali households use<a href="https://nepalitimes.com/opinion/people-power/nepal-turns-on-the-electric-switch"> electric stoves</a>, if 5.6 million households were to use induction stoves for three hours every day, the country would use 825MW of electricity, displacing LPG consumption entirely, also reducing <a href="https://nepalitimes.com/news/nepal-doubles-its-carbon-footprint">Nepal’s carbon footprint</a>. But all this requires a better transmission and distribution system in the grid so that they reach the <a href="https://nepalitimes.com/banner/life-and-livelihood-in-remote-nepal">remotest areas</a> to double <a href="https://nepalitimes.com/news/power-to-the-people">electricity consumption</a>. Scaling up fast charging stations for <a href="https://nepalitimes.com/here-now/nepal-s-journey-to-electric-public-transport">battery-powered transportation</a> would meet the growing demand for EVs. Extending tax rebates to also include large electric buses would reduce <a href="https://archive.nepalitimes.com/news.php?id=17315">diesel demand</a>, which has also been growing. Nepal also has to look beyond conventional hydropower to solar-powered <a href="https://nepalitimes.com/here-now/pump-water-store-energy">pump storage to generate electricity</a>, which would be cheaper and faster to build. Such schemes would also be less destructive to the ecology of <a href="https://nepalitimes.com/here-now/geopolitics-of-nepal-s-rivers">the country’s rivers</a>. <a href="https://nepalitimes.com/banner/the-climate-crisis-is-a-water-crisis-in-the-himalaya">The climate crisis is a water crisis</a>, and Nepal must plan for a future in which the Himalayan icecap will be further depleted. Rivers are not just a source of energy but ensure equitable <a href="https://nepalitimes.com/news/nepal-needs-to-plan-for-plenty-and-scarcity-of-water">water supply for irrigation</a>, <a href="https://nepalitimes.com/news/aid-rarely-aids-agriculture-in-nepal">agriculture</a>, and household use. &nbsp; Ramesh Kumar

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Hydrocarbon to hydropower

Probably the best thing to happen to Nepal’s economy lately is India’s refusal to buy more electricity. It could eventually force the government to <a href="https://www.nepalitimes.com/editorial/challenge-of-the-millennium">expedite transmission infrastructure</a> and increase domestic demand. Nepal Electricity Authority (NEA) is losing billions in <a href="https://www.nepalitimes.com/here-now/nepal-s-precious-electricity-going-waste">spilled power </a>this monsoon because it cannot evacuate power. Some private producers have actually stopped generating altogether. Installed hydropower capacity is touching 3,000MW this monsoon, and projects for a further 3,300MW are under construction. But domestic consumption is stuck at 1,700MW. Nepal could export electricity, but India has agreed to buy only 452MW from projects with <a href="https://www.nepalitimes.com/here-now/geopolitics-of-nepal-s-rivers">no Chinese involvement</a>. Even if the full quota was exported, Nepal would only earn NPR20 billion, whereas the trade deficit with India is at NPR840 billion and growing. In fact, Nepal imported NPR20 billion worth of power from India last year to cover its dry season deficit.&nbsp; “At the current rate, if we do not put up transmission lines in time, by 2025 we will be losing electricity worth 120 million every day in winter and Rs170 million during the monsoon,” warned Kathmandu University engineering professor Bishal Silwal at at a recent seminar.&nbsp; NEA blames delays in substations and transmission lines on <a href="https://archive.nepalitimes.com/article/nation/high-tension-in-sindhuli,1297">locals blocking construction</a>. Kathmandu Valley therefore faces frequent power outages due to tripping even there is enough power in the grid. “The problem right now is not of supply but infrastructure,” former NEA head Hitendra Shakya explained at the seminar. “It is a result of poor planning.”&nbsp; There is also lack of coordination between various agencies of government to encourage domestic consumption with tax rebates for industries, battery-powered vehicles and household appliances. An average Nepali consumes 325kWh of electricity, much lower than the global per capita of 3,180kWh. Former energy secretary Dwarika Nath Dhungel, who is the author of a new compendium on the political economy of hydropower, says: “Exporting electricity should be the last thing on our list. We might be generating surplus but we still import power from India during winter, let’s first try to use the surplus to replace that import.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230825050844_432c12cd7043c2c38c9ef9dab2df1d12416c734c0f8dc4e46af5f14a6419e30f.jpg" data-media-id="editor_4" data-image-id="20230825050844_432c12cd7043c2c38c9ef9dab2df1d12416c734c0f8dc4e46af5f14a6419e30f" data-rendition-name="original" width="3000" height="3073" loading="lazy" alt="Page 1"> <figcaption>Photo: BIKRAM RAI/NEPALI TIMES ARCHIVE</figcaption> </figure>  Indeed, while some 95% of Nepal’s population is said to have access to electricity, districts like Bajhang, Dolpa, Bajura, Jumla and Mugu are not yet connected to the grid. Nepal’s wetter eastern half has most of the hydropower generation capacity, while the more arid west does not have enough. Surplus power could also jumpstart Nepal’s struggling industries, the tourism sector and agriculture. This in turn would create jobs so Nepalis are not <a href="https://www.nepalitimes.com/news/nepalis-in-the-russian-army-want-to-quit">forced to migrate abroad</a>. “Hydroelectricity should be a crucial element of our national development strategy so we make its maximum use domestically and for employment. Only then should we be exporting power,” says Dhungel. NEA can earn more from selling power domestically. Private industries are paying up to NPR11 per unit whereas the average price of electricity sold to India is just NPR4.33 per unit. <a href="https://www.nepalitimes.com/opinion/comment/securing-nepal-s-electric-future">Using electricity</a> to slash Nepal’s petroleum import bill by just 10% would save the country at least NPR30 billion a year, and be a faster way to decrease the trade deficit with India. Improving public health by cutting pollution would be a bonus. Nepal’s <a href="https://www.nepalitimes.com/news/nepal-india-power-play">balance of power with its two neighbours</a> is also getting skewed with a tilt towards India, as New Delhi leans on politicians here to systematically cancel Chinese investments in hydropower. Experts say India’s real interest is in regulating Nepal’s rivers to ensure future water supply rather than electricity. “Politicians spout non-stop nonsense about how they will make the country rich by exporting electricity when water is our strategic commodity,” says Dhungel. “They are trading our water resources to stay in power by keeping a certain neighbour happy. One has to wonder if Singha Darbar is making decisions or the Delhi Darbar.” Successive governments of K P Oli, Sher Bahadur Deuba and now Pushpa Kamala Dahal have all awarded one hydropower project after another to Indian state companies which are now building projects that will generate a combined total of 4,000MW. More Indian projects are in the pipeline. With the rise of China and India as global players and the new Sino-US cold war, <a href="https://www.nepalitimes.com/here-now/the-geopolitics-of-nepal-s-water-and-electricity">Nepal has become a geo-strategic hotspot</a>. But it is now also a climate hotspot, and shrinking glaciers will affect electricity generation and the hydrology of Himalayan rivers.&nbsp; Dwarika Nath Dhungel sums it up: “We can’t change our neighbours but we can understand their aspirations better so that we have leverage when dealing with them. But first, we have to become stronger by making the best use of our own resources domestically.”

Sonia Awale

Balance of Power

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141132/636cfdd29c7e80680e0a0c06jpeg.jpg" alt="" width="1198" height="1227"/><figcaption>Photo: BIKRAM RAI/ NEPALI TIMES ARCHIVES</figcaption></figure>The most tangible collateral damage of Nepal’s <a href="https://www.nepalitimes.com/editorial/they-fail-we-fall/" target="_blank" rel="noopener noreferrer">chronic political instability</a> is going to be the effort to streamline Nepal’s electricity grid. Politicians have weaponised the US-supported <a href="https://www.nepalitimes.com/here-now/power-politics-delays-mcc-in-nepal/" target="_blank" rel="noopener noreferrer">Millennium Challenge Corporation (MCC) infrastructure grant</a>, and the much-needed project is stuck.An agreement for the $500 million project was signed by the Nepali Congress (NC) Finance Minister Gyanendra Bahadur Karki in Washington DC four years ago. But since then, it had become a <a href="https://www.nepalitimes.com/editorial/knowing-whats-good-for-nepal/" target="_blank" rel="noopener noreferrer">political football </a>in the great game between prime Minister K P Oli and his nemeses Pushpa Kamal Dahal and Madhav Kumar Nepal.The first hint that the MCC controversy was carrying over to the new government was that it was not included in the ‘common minimum program’ agreed to between the five coalition partners on 9 August.The Maoists and the Nepal faction have used the MCC so effectively to bludgeon Oli’s government that the rank-and-file are dead against the project. They are convinced it will allow the US military to build missile silos in Nepal aimed at China.<a href="https://www.nepalitimes.com/latest/using-the-delay-in-mcc-to-dissect-it/">Putting the MCC in context</a>, Jeevan R Sharma and David SeddonThe MCC was launched by the US government in 2004 as an innovative way to end poverty in least developed countries. Nepal met the eligibility criteria and was selected as a partner, and planning for the MCC started during the government of Baburam Bhattarai in 2012. Bhattarai is now in the five-party alliance as a part of the JSP.Critics have used ultra-nationalism and populism to portray the MCC as a form of US neo-colonialism and imperialism. The Americans fuelled the fire themselves when a US undersecretary of state admitted in 2019 that the MCC was a part of the US Indo-Pacific Strategy aimed at encircling China.Washington back-pedalled, but the damage was done. There are many who do not need convincing that the MCC in Nepal is America’s geo-strategic response to<a href="https://www.nepalitimes.com/latest/bri-and-trans-himalayan-connectivity/" target="_blank" rel="noopener noreferrer"> China’s Belt-Road Initiative</a>.But because of this political impasse, work on urgently needed electricity transmission lines and highway upgrading has not started. The cost of not having this infrastructure in place will be much more than the $500 million outlay of the project.<a href="https://www.nepalitimes.com/banner/own-goal/">Own Goal</a>, Kunda DixitThe main objective of the MCC is a 315km transmission line between Hetauda-Damauli-Butwal. This power line is critical for the east-west distribution of the 3,000MW of electricity that will be <a href="https://www.nepalitimes.com/opinion/decentralising-hydropower/">added to Nepal’s national grid</a> in the next three years, nearly double the current generation capacity. Another 2,500MW worth of projects are awaiting power purchase agreements with the NEA and will depend on the MCC transmission lines being in place.Nepal’s current power need is 1,500MW at peak hours, and despite suppressed demand due to shortage and cost, it is not expected to increase by much in the next three years. Which means Nepal will have a <a href="https://www.nepalitimes.com/latest/generating-electricity-and-cash-for-nepalis/" target="_blank" rel="noopener noreferrer">monsoon surplus</a> that can be exported to India, and for this, the cross-border 400KV transmission line from Butwal to Gorakhpur will be necessary.At present, Nepal imports electricity from India through the Dhalkebar-Muzzafarpur power corridor that has a capacity of handling only 800MW. The MCC line would increase this to 2,600MW, but if the Butwal-Gorakhpur transmission line is not built in the next few years, much of the surplus electricity generated in Nepal is in danger of being wasted, or 'spilled' in technical parlance.Even if the MCC is <a href="https://www.nepalitimes.com/latest/post-truth-politics-in-nepal/" target="_blank" rel="noopener noreferrer">never ratified by Parliament because of the political deadlock</a>, Nepal needs to immediately start building these transmission lines by itself. Private power producers in Nepal have signed agreements with NEA on the understanding that the transmission lines will be in place to evacuate the electricity they generate.Because of the nature of the monsoon and Nepal’s east-west territory, there will be surplus electricity in the east while there is a deficit in the west, so the transmission lines are even more critical to balance the national grid.<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/latest/mcc-row-damages-nepals-credibility/" target="_blank" rel="noopener noreferrer">This is too serious a subject</a> to be left to politicians, or to geopolitics. The NEA’s new head Kulman Ghising needs to sit down with the MCA’s Khadga Bahadur Bista and resolve this one way or another right away.In the 1960s, at the height of the Cold War and despite sensitivities after the India-China war, King Mahendra went ahead with the Kodari Highway linking Kathmandu to Lhasa. That is the kind of leadership we need now, one that will not be terrified about <a href="https://www.nepalitimes.com/latest/is-china-now-micro-managing-nepal-politics/" target="_blank" rel="noopener noreferrer">what one or the other neighbour will say</a>, but decide what is in the national interest and just do it.Ramesh KumarRead also:<a href="https://www.nepalitimes.com/editorial/a-millennium-challenge/">A millennium challenge</a>, Editorial<a href="https://www.nepalitimes.com/from-the-nepali-press/why-there-is-no-foreign-investment-in-nepal/" target="_blank" rel="noopener noreferrer">Why there is no foreign investment in Nepal</a> , Nepali Times

Challenge of the millennium

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110131116/636cec219c7e80680e09ad49jpeg.jpg" alt="" width="1500" height="1000"/><figcaption>Illustration: DIWAKAR CHHETRI</figcaption></figure>Nepal's prolonged political deadlock has not just affected the country’s response to Covid-19, it has also delayed the implementation of an American-aided project to upgrade Nepal’s electricity transmission grid.The <a href="https://www.nepalitimes.com/editorial/knowing-whats-good-for-nepal/" target="_blank" rel="noopener noreferrer">controversial</a> Millennium Challenge Corporation (MCC) project is the biggest single bilateral grant for a specific project in Nepal by a foreign country, but <a href="https://www.nepalitimes.com/editorial/a-millennium-challenge/" target="_blank" rel="noopener noreferrer">has become the focus of an intense power struggle </a>rival parties, and is tangled in regional and global geopolitics.A big part of the $500 million MCC grant is ear-marked for the Kathmandu-Hetauda-Butwal 400KVa transmission line which will eventually evacuate electricity generated from existing and new <a href="https://www.nepalitimes.com/opinion/decentralising-hydropower/" target="_blank" rel="noopener noreferrer">hydropower plants</a> on the Budi Gandaki, Trisuli, Kali Gandaki, Marsyangdi, Kosi, and Tamakosi corridors, and link it to Gorakhpur in India. A smaller component of the project will upgrade arterial highways. The Nepal government is putting up another $130 million as a counterpart fund.However, critics in Nepal see the MCC as America’s strategic counter to China’s Belt Road Initiative. The <a href="https://www.nepalitimes.com/editorial/knowing-whats-good-for-nepal/" target="_blank" rel="noopener noreferrer">comment by US Under Secretary of State David J Ranz</a> in 2019 that the MCC was indeed a part of the US <a href="https://www.nepalitimes.com/editorial/between-two-oceans/" target="_blank" rel="noopener noreferrer">Indo-Pacific Strategy</a>added fuel to the fire.Sandwiched between India and China, Nepal was already in a strategic tight spot, but a recent flare-up in Sino-Indian tension and US-China rivalry have caught Nepal in the crossfire. In addition, opponents of Prime Minister K P Oli have weaponised the MCC and used the project to weaken his position.But Nepal’s energy planners say that even if the MCC is delayed or cancelled, the country will have to find alternatives to build the transmission lines.“We cannot afford this uncertainty we must have a Plan B in place, otherwise we will face a huge problem. There will be all this electricity being generated in the next few years, but no way to take it to consumers,” says Hitendra Dev Shakya, who heads the Nepal Electricity Authority (NEA). “We have to build the transmission lines with or without American aid.”The reason behind the <a href="https://www.nepalitimes.com/editorial/a-millennium-challenge/" target="_blank" rel="noopener noreferrer">transmission line being prioritised</a> is to send the electricity produced from throughout Nepal, and any future monsoon surplus can then be exported to India and the same lines can be used to import power in winter if required.New projects with a generation capacity of 330MW are under construction on the Bhote Kosi in Rasuwa and Nuwakot. A further 500MW will be generated from other hydropower schemes whose construction was delayed due to the pandemic.New 220KVa transmission lines are ready to bring that electricity to Kathmandu Valley, but they only have the capacity to carry the new load from projects now under construction. But the NEA has already made Power Purchase Agreements (PPA) to buy about 6,000MW of electricity from private operators, and the distribution of that power will depend on the MCC-funded distribution system. The NEA says it urgently needs another transmission link to bring power from plants on the Tama Kosi to Kathmandu and to eastern Nepal via Hetauda.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110131116/636cec259c7e80680e09ad4ajpeg.jpg" alt="" width="880" height="840"><a href="https://www.mcc.gov/where-we-work/country/nepal" target="_blank" rel="noopener noreferrer">The MCC</a> was set up in 2004 by the US Congress during the George W Bush presidency to help developing nations reduce poverty through financial aid. Since then, as Sino-US tensions grew it has taken on a strategic dimension as the two powers compete for global connectivity. The $500 million MCC grant to Nepal was sanctioned in 2017 to improve Nepal’s energy and road infrastructure.Nepal was suffering 18 hours of power cuts a day when the agreement was signed, and after much deliberation, Nepal’s planners, politicians and bureaucrats decided that <a href="https://www.nepalitimes.com/editorial/a-millennium-challenge/" target="_blank" rel="noopener noreferrer">transmission lines were the most urgently needed</a> since powerplants were already under construction. The generated electricity need to be taken to load centres, this would increase the renewable component of Nepal’s energy mix by replacing imported petroleum, and finally, to export any surplus to India.Meanwhile, the <a href="https://www.nepalitimes.com/latest/post-truth-politics-in-nepal/" target="_blank" rel="noopener noreferrer">Millennium Challenge Authority Nepal (MCA-Nepal)</a> has been set up and the office has already finalised the design of the 315km transmission line of 400KVa capacity with three new sub-stations. But the delay in Parliament’s ratification of the project means it cannot issue tender bids, and this will put 2,600MW of electricity at risk of being wasted in eh coming two years.<a href="https://archive.nepalitimes.com/news.php?id=17959" target="_blank" rel="noopener noreferrer">Khadga Bahadur Bista</a>, the CEO of MCA-Nepal estimates about it takes up to five months to select a contractor even if the project is ratified by Parliament, and after that, it will take another nine months to start construction.“We are all set to kick start this project and are ready to call for international tender bids, but due to it still pending in the Parliament we have not been able to make progress,” Bista told Nepali Times. Just Do ItThe NEA says that Nepal is now generating 1,400MW of electricity, and this is set to more than triple in the next three years to 5,000MW, with the largest hydropower project so far in Nepal, the 456MW Upper Tama Kosi coming on stream in July, if it is not delayed again by the lockdown.Other hydroelectricity projects totalling 2,500MW are planned are in the financial negotiations stage, they are set to come into operation by 2026.But the more urgent need is power transmission to accommodate the new projects in the next three years as Nepal struggles to keep up with demand. The current peak demand is 1,150MW, which drops to 700MW at night. Generation capacity also fluctuates during the monsoon and dry season between surplus and scarcity because most of the hydro projects are of the run-of-river type without large reservoirs.To avoid electricity from going to waste during the monsoon, Nepal can export the surplus power to India, and import in winter. The agreements are in place with India to facilitate power trade, but current transmission lines cannot bear future load. The MCC-funded transmission lines are also required for domestic distribution and grid management.The present Dhalkebar-Muzaffarpur crossborder transmission line connects India and Nepal but can only handle 1,000MW each way, but practically it can only bear 800MW. This means by late next year, Nepal’s new surplus monsoon electricity is sure to go waste.This will not just be a wasted opportunity for Nepal to reduce its trade imbalance and partly pay for its winter power import from India, but also affect private hydropower investors in Nepal. This scenario can be avoided if the proposed 400KVa Butwal-Gorakhpur transmission line.The catch here is that the NEA has signed an understanding with the private hydropower investors that it will buy electricity they generate only if the surplus can be exported to India. Any delay in building the Butwal-Gorakhpur transmission line to India, therefore would ultimately impact Nepal’s own private power producers. This put their investment at risk, affect the banking sector, and ultimately Nepal’s overall economy.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110131116/636cec279c7e80680e09ad4bjpeg.jpg" alt="" width="946" height="526"><figcaption>Illustration: BHANU BHATTARAI</figcaption></figure>Critics of the MCC have pointed out that exporting power to India is not a priority, and Nepal should use power from the new projects to foster value-added energy-intensive industries in Nepal itself. However, the MCC transmission lines will be needed even to feed power within the country.In addition, at the rate power demand is rising in Nepal, even if 5,000MW is generated in the monsoon, the capacity of the run-of-river schemes will drop to one-third in the dry season – as it has done during this year’s winter drought. The higher capacity transmission lines are therefore required to import power from India until such time as Nepal’s generation capacity in winter is augmented with storage projects like Budi Gandaki.NEA’s Shakya says the MCC project will form a backbone of Nepal’s electricity grid, and by linking it to the Indian grid it will be more robust and flexible, allowing load sharing and management. The MCC-funded transmission lines are also critical for meeting Kathmandu Valley’s future demand growth, to transfer power generated in eastern Nepal to the western half of the country during the monsoon, and from west to east in the winter.Fortunately, electricity supply and demand in Nepal and India complement each other. In summer, when demand rises in India Nepal has surplus power, and in winter when Nepal’s supply cannot meet demand, it can import from India.The same is true within Nepal. There is a nearly one month lag between the time the monsoon arrives in eastern Nepal in early June, and by the time it starts raining heavily in western Nepal in mid-July. This means projects in eastern Nepal are already operating at full capacity, and the surplus electricity can be sent to western Nepal where it is still dry – if there was the necessary east-west transmission system.“The risk that we will have to face in the coming years if this project does not materialise will be unimaginable,” Shakya warns. “If these transmission lines are not built through the MCC grant, we have to immediately start moving towards an alternative.”Good connectivityNepal signed the MCC Compact Agreement in September 2017 which allowed the MCC Board in Washington to release the grant amount of $500 million (Rs59 billion) for the development of Nepal’s electricity transmission line and road infrastructure. But everything has been stuck for more than a year because a provision in the agreement that required ratification by Parliament.The Americans insisted on this clause so that the project would be valid no matter which government was in power in Nepal, but that is also the reason that the MCC has become a punching bag for those against Prime Minister Oli—even though his predecessors in other parties opposing the project were in government when the agreement was signed. The NC leadership which is now in the opposition, as well as NCP leaders that included the Maoist Centre and UML, who are vehemently getting the MCC scrapped today were involved in approving and planning the project.Foreign affairs experts explain that the MCC has been caught up in domestic oneupmanship between Nepal’s leaders and <a href="https://www.nepalitimes.com/editorial/covid-19-and-the-new-great-game/" target="_blank" rel="noopener noreferrer">international geopolitics</a>. Nepal’s politicians have a tendency to be north-facing or south-facing, or both, and are generally not able to work together for the national interest. This is made worse by the absence of trust, and a lack of dignity.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110131116/636cec2a9c7e80680e09ad4cjpeg.jpg" alt="" width="750" height="1000"><figcaption>Photo: KUNDA DIXIT</figcaption></figure>The US side has informed the government that the MCC grant is not open-ended and the deadline is looming. However, the MCC has also suffered collateral damage as Prime Minister Oli dissolved the Lower House on 20 December, and then ended the winter session on 19 April. The Special Session has been called for 10 May as Prime Minister Oli seeks a confidence vote. If he loses, the country will go for early elections in six month’s time. The budget session of the House could pass the MCC, but with the intense political polarisation, it will not be easy.Despite the agreement being signed by both governments, therefore, it is languishing because of Nepal’s internal dynamics. The main objection from the detractors is that it is a part of the Indo-Pacific Strategy of the United States, and that several provisions of the agreement undermine the sovereignty of Nepal.Bhim Rawal, a staunch anti-Oli UML leader, as well as Pushpa Kamal Dahal and other Maoist Centre leaders are against the agreement being ratified by Parliament, more because of their opposition to a project Oli is pushing than other reasons. A committee constituted under the convener of UML leader Jhalanath Khanal and others had recommended last year that the agreement be passed with amendments.Though the project has still not got off the ground, it has already spent about $3 million for preparations, which the US and Nepal government have shared half-half. It was used for the mapping and design of the transmission lines, the pylons, sub-stations, and preparing tender documents.The EIA (Environmental Impact Assessment (EIA) report of the overall project is in the final stages. The task of acquiring the land under the project in Ratmate of Nuwakot, where the sub-station will be constructed is nearing completion. The Nepal government has allocated Rs10.3 billion this fiscal year for MCC, but till mid-December only Rs140 million had been spent.

Power politics delays MCC in Nepal

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109111140/636b84009c7e80680e06776cjpeg.jpg" alt="" width="1500" height="1000"/><figcaption>Illustration: DIWAKAR CHHETRI</figcaption></figure>Nepal's prolonged political deadlock has not just affected the country’s response to Covid-19, it has also delayed the implementation of an American-aided project to upgrade Nepal’s electricity transmission grid.The <a href="https://www.nepalitimes.com/editorial/knowing-whats-good-for-nepal/" target="_blank" rel="noopener noreferrer">controversial</a> Millennium Challenge Corporation (MCC) project is the biggest single bilateral grant for a specific project in Nepal by a foreign country, but <a href="https://www.nepalitimes.com/editorial/a-millennium-challenge/" target="_blank" rel="noopener noreferrer">has become the focus of an intense power struggle </a>rival parties, and is tangled in regional and global geopolitics.A big part of the $500 million MCC grant is ear-marked for the Kathmandu-Hetauda-Butwal 400KVa transmission line which will eventually evacuate electricity generated from existing and new <a href="https://www.nepalitimes.com/opinion/decentralising-hydropower/" target="_blank" rel="noopener noreferrer">hydropower plants</a> on the Budi Gandaki, Trisuli, Kali Gandaki, Marsyangdi, Kosi, and Tamakosi corridors, and link it to Gorakhpur in India. A smaller component of the project will upgrade arterial highways. The Nepal government is putting up another $130 million as a counterpart fund.However, critics in Nepal see the MCC as America’s strategic counter to China’s Belt Road Initiative. The <a href="https://www.nepalitimes.com/editorial/knowing-whats-good-for-nepal/" target="_blank" rel="noopener noreferrer">comment by US Under Secretary of State David J Ranz</a> in 2019 that the MCC was indeed a part of the US <a href="https://www.nepalitimes.com/editorial/between-two-oceans/" target="_blank" rel="noopener noreferrer">Indo-Pacific Strategy</a>added fuel to the fire.Sandwiched between India and China, Nepal was already in a strategic tight spot, but a recent flare-up in Sino-Indian tension and US-China rivalry have caught Nepal in the crossfire. In addition, opponents of Prime Minister K P Oli have weaponised the MCC and used the project to weaken his position.But Nepal’s energy planners say that even if the MCC is delayed or cancelled, the country will have to find alternatives to build the transmission lines.“We cannot afford this uncertainty we must have a Plan B in place, otherwise we will face a huge problem. There will be all this electricity being generated in the next few years, but no way to take it to consumers,” says Hitendra Dev Shakya, who heads the Nepal Electricity Authority (NEA). “We have to build the transmission lines with or without American aid.”The reason behind the <a href="https://www.nepalitimes.com/editorial/a-millennium-challenge/" target="_blank" rel="noopener noreferrer">transmission line being prioritised</a> is to send the electricity produced from throughout Nepal, and any future monsoon surplus can then be exported to India and the same lines can be used to import power in winter if required.New projects with a generation capacity of 330MW are under construction on the Bhote Kosi in Rasuwa and Nuwakot. A further 500MW will be generated from other hydropower schemes whose construction was delayed due to the pandemic.New 220KVa transmission lines are ready to bring that electricity to Kathmandu Valley, but they only have the capacity to carry the new load from projects now under construction. But the NEA has already made Power Purchase Agreements (PPA) to buy about 6,000MW of electricity from private operators, and the distribution of that power will depend on the MCC-funded distribution system. The NEA says it urgently needs another transmission link to bring power from plants on the Tama Kosi to Kathmandu and to eastern Nepal via Hetauda.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109111140/636b84039c7e80680e06776djpeg.jpg" alt="" width="880" height="840"><a href="https://www.mcc.gov/where-we-work/country/nepal" target="_blank" rel="noopener noreferrer">The MCC</a> was set up in 2004 by the US Congress during the George W Bush presidency to help developing nations reduce poverty through financial aid. Since then, as Sino-US tensions grew it has taken on a strategic dimension as the two powers compete for global connectivity. The $500 million MCC grant to Nepal was sanctioned in 2017 to improve Nepal’s energy and road infrastructure.Nepal was suffering 18 hours of power cuts a day when the agreement was signed, and after much deliberation, Nepal’s planners, politicians and bureaucrats decided that <a href="https://www.nepalitimes.com/editorial/a-millennium-challenge/" target="_blank" rel="noopener noreferrer">transmission lines were the most urgently needed</a> since powerplants were already under construction. The generated electricity need to be taken to load centres, this would increase the renewable component of Nepal’s energy mix by replacing imported petroleum, and finally, to export any surplus to India.Meanwhile, the <a href="https://www.nepalitimes.com/latest/post-truth-politics-in-nepal/" target="_blank" rel="noopener noreferrer">Millennium Challenge Authority Nepal (MCA-Nepal)</a> has been set up and the office has already finalised the design of the 315km transmission line of 400KVa capacity with three new sub-stations. But the delay in Parliament’s ratification of the project means it cannot issue tender bids, and this will put 2,600MW of electricity at risk of being wasted in eh coming two years.<a href="https://archive.nepalitimes.com/news.php?id=17959" target="_blank" rel="noopener noreferrer">Khadga Bahadur Bista</a>, the CEO of MCA-Nepal estimates about it takes up to five months to select a contractor even if the project is ratified by Parliament, and after that, it will take another nine months to start construction.“We are all set to kick start this project and are ready to call for international tender bids, but due to it still pending in the Parliament we have not been able to make progress,” Bista told Nepali Times. Just Do ItThe NEA says that Nepal is now generating 1,400MW of electricity, and this is set to more than triple in the next three years to 5,000MW, with the largest hydropower project so far in Nepal, the 456MW Upper Tama Kosi coming on stream in July, if it is not delayed again by the lockdown.Other hydroelectricity projects totalling 2,500MW are planned are in the financial negotiations stage, they are set to come into operation by 2026.But the more urgent need is power transmission to accommodate the new projects in the next three years as Nepal struggles to keep up with demand. The current peak demand is 1,150MW, which drops to 700MW at night. Generation capacity also fluctuates during the monsoon and dry season between surplus and scarcity because most of the hydro projects are of the run-of-river type without large reservoirs.To avoid electricity from going to waste during the monsoon, Nepal can export the surplus power to India, and import in winter. The agreements are in place with India to facilitate power trade, but current transmission lines cannot bear future load. The MCC-funded transmission lines are also required for domestic distribution and grid management.The present Dhalkebar-Muzaffarpur crossborder transmission line connects India and Nepal but can only handle 1,000MW each way, but practically it can only bear 800MW. This means by late next year, Nepal’s new surplus monsoon electricity is sure to go waste.This will not just be a wasted opportunity for Nepal to reduce its trade imbalance and partly pay for its winter power import from India, but also affect private hydropower investors in Nepal. This scenario can be avoided if the proposed 400KVa Butwal-Gorakhpur transmission line.The catch here is that the NEA has signed an understanding with the private hydropower investors that it will buy electricity they generate only if the surplus can be exported to India. Any delay in building the Butwal-Gorakhpur transmission line to India, therefore would ultimately impact Nepal’s own private power producers. This put their investment at risk, affect the banking sector, and ultimately Nepal’s overall economy.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109111140/636b84069c7e80680e06776ejpeg.jpg" alt="" width="946" height="526"><figcaption>Illustration: BHANU BHATTARAI</figcaption></figure>Critics of the MCC have pointed out that exporting power to India is not a priority, and Nepal should use power from the new projects to foster value-added energy-intensive industries in Nepal itself. However, the MCC transmission lines will be needed even to feed power within the country.In addition, at the rate power demand is rising in Nepal, even if 5,000MW is generated in the monsoon, the capacity of the run-of-river schemes will drop to one-third in the dry season – as it has done during this year’s winter drought. The higher capacity transmission lines are therefore required to import power from India until such time as Nepal’s generation capacity in winter is augmented with storage projects like Budi Gandaki.NEA’s Shakya says the MCC project will form a backbone of Nepal’s electricity grid, and by linking it to the Indian grid it will be more robust and flexible, allowing load sharing and management. The MCC-funded transmission lines are also critical for meeting Kathmandu Valley’s future demand growth, to transfer power generated in eastern Nepal to the western half of the country during the monsoon, and from west to east in the winter.Fortunately, electricity supply and demand in Nepal and India complement each other. In summer, when demand rises in India Nepal has surplus power, and in winter when Nepal’s supply cannot meet demand, it can import from India.The same is true within Nepal. There is a nearly one month lag between the time the monsoon arrives in eastern Nepal in early June, and by the time it starts raining heavily in western Nepal in mid-July. This means projects in eastern Nepal are already operating at full capacity, and the surplus electricity can be sent to western Nepal where it is still dry – if there was the necessary east-west transmission system.“The risk that we will have to face in the coming years if this project does not materialise will be unimaginable,” Shakya warns. “If these transmission lines are not built through the MCC grant, we have to immediately start moving towards an alternative.”Good connectivityNepal signed the MCC Compact Agreement in September 2017 which allowed the MCC Board in Washington to release the grant amount of $500 million (Rs59 billion) for the development of Nepal’s electricity transmission line and road infrastructure. But everything has been stuck for more than a year because a provision in the agreement that required ratification by Parliament.The Americans insisted on this clause so that the project would be valid no matter which government was in power in Nepal, but that is also the reason that the MCC has become a punching bag for those against Prime Minister Oli—even though his predecessors in other parties opposing the project were in government when the agreement was signed. The NC leadership which is now in the opposition, as well as NCP leaders that included the Maoist Centre and UML, who are vehemently getting the MCC scrapped today were involved in approving and planning the project.Foreign affairs experts explain that the MCC has been caught up in domestic oneupmanship between Nepal’s leaders and <a href="https://www.nepalitimes.com/editorial/covid-19-and-the-new-great-game/" target="_blank" rel="noopener noreferrer">international geopolitics</a>. Nepal’s politicians have a tendency to be north-facing or south-facing, or both, and are generally not able to work together for the national interest. This is made worse by the absence of trust, and a lack of dignity.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109111140/636b84089c7e80680e06776fjpeg.jpg" alt="" width="750" height="1000"><figcaption>Photo: KUNDA DIXIT</figcaption></figure>The US side has informed the government that the MCC grant is not open-ended and the deadline is looming. However, the MCC has also suffered collateral damage as Prime Minister Oli dissolved the Lower House on 20 December, and then ended the winter session on 19 April. The Special Session has been called for 10 May as Prime Minister Oli seeks a confidence vote. If he loses, the country will go for early elections in six month’s time. The budget session of the House could pass the MCC, but with the intense political polarisation, it will not be easy.Despite the agreement being signed by both governments, therefore, it is languishing because of Nepal’s internal dynamics. The main objection from the detractors is that it is a part of the Indo-Pacific Strategy of the United States, and that several provisions of the agreement undermine the sovereignty of Nepal.Bhim Rawal, a staunch anti-Oli UML leader, as well as Pushpa Kamal Dahal and other Maoist Centre leaders are against the agreement being ratified by Parliament, more because of their opposition to a project Oli is pushing than other reasons. A committee constituted under the convener of UML leader Jhalanath Khanal and others had recommended last year that the agreement be passed with amendments.Though the project has still not got off the ground, it has already spent about $3 million for preparations, which the US and Nepal government have shared half-half. It was used for the mapping and design of the transmission lines, the pylons, sub-stations, and preparing tender documents.The EIA (Environmental Impact Assessment (EIA) report of the overall project is in the final stages. The task of acquiring the land under the project in Ratmate of Nuwakot, where the sub-station will be constructed is nearing completion. The Nepal government has allocated Rs10.3 billion this fiscal year for MCC, but till mid-December only Rs140 million had been spent.

Nepal’s former king Gyanendra was greeted by flag-waving supporters as he arrived at Kathmandu Airport on Sunday afternoon from Pokhara after attending pro-monarchy rallies in various parts of the country. Gyanendra and his family were escorted from the airport by supporters to his residence at Nirmal Niwas, where his family has been living since 2008 when the Constituent Assembly abolished the monarchy. The 2015 Constitution then turned Nepal into a federal democratic republic. The deposed monarch had been on a two-month long tour of religious sites and local communities across western Nepal, ending in a two-week stay in Pokhara. After staying out of controversy, Gyanendra made a statement on Nepal’s Democracy Day last month in which he said he was willing to play a role in “saving the country”. There has been a surge of pro-monarchy posts and videos on social media, where the country’s previous kings have been glorified as being nationalists who were respected by the international community.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250309120340_07b324fee8d082ed3f8566544e24d45fcd600bbb122374fc39c7a94ce3d044f2.jpg" data-media-id="editor_0" data-image-id="20250309120340_07b324fee8d082ed3f8566544e24d45fcd600bbb122374fc39c7a94ce3d044f2" data-rendition-name="original" width="1914" height="1276" loading="lazy" alt="The ghost of monarchy returns to haunt Nepal NT"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250309120340_769f688f3a5eb3602f4c24c350ba1caa6965a171c079d783e28db0f746b810d0.jpg" data-media-id="editor_1" data-image-id="20250309120340_769f688f3a5eb3602f4c24c350ba1caa6965a171c079d783e28db0f746b810d0" data-rendition-name="original" width="2000" height="1333" loading="lazy" alt="The ghost of monarchy returns to haunt Nepal NT"> </figure>  Nepal’s monarchists, which include Gyanendra’s backers, several pro-monarchist parties and other anti-government figures, think <a href="https://nepalitimes.com/editorial/new-year-same-difference">public disillusionment </a>with the country’s ageing and ineffective leaders and institutions is at breaking point.&nbsp; There is also disappointment with elected leaders and technocrats from new parties like the Rastriya Swatantra Party (RSP), with its <a href="https://nepalitimes.com/news/rabi-s-detention-churns-nepali-politics">leader Rabi Lamichhane under investigation</a> for his alleged involvement in a scandal involving diverting funds from cooperatives. One of the staunchest backers of Gyanendra’s comeback as king is former BBC journalist Rabindra Mishra, who has been active on social media platforms posting videos and text extolling the monarchy. He has referenced recent street uprisings in Sri Lanka, Bangladesh, and Syria, cautioning Nepal’s mainstream leaders not to dismiss support for the monarchy. ‘Support for a return to monarchy is increasing even though the mainstream parties may dismiss it,’ wrote Mishra. ‘Like the leaders of Sri Lanka and Bangladesh, they should not try to suppress the voices on the streets.’  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250309120340_d8758f6b7474c9f3aea3661ccd60955d8553971cb0d799039bbfd232aa1a0691.jpg" data-media-id="editor_4" data-image-id="20250309120340_d8758f6b7474c9f3aea3661ccd60955d8553971cb0d799039bbfd232aa1a0691" data-rendition-name="original" width="1890" height="1260" loading="lazy" alt="The ghost of monarchy returns to haunt Nepal NT"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250309120340_63613759744c0fac33ff3eabc298079c3e525063882f4b3760954bbc0833b5cd.jpg" data-media-id="editor_5" data-image-id="20250309120340_63613759744c0fac33ff3eabc298079c3e525063882f4b3760954bbc0833b5cd" data-rendition-name="original" width="2000" height="1333" loading="lazy" alt="The ghost of monarchy returns to haunt Nepal NT"> </figure>  But for all their bluster, Nepal’s mainstream politicians who have rotated leadership of the country between themselves, seem worried about the crowds on the streets in support of the monarchy. The TikTok ban last year, which the government said was to ‘maintain social harmony’ was put into effect to prevent pro-monarchy groups from organising on the platform. The ban on TikTok has now been lifted, and supporters of the monarchy have mobilised platforms to fan nostalgia of the golden age of royalty, and to brand former kings Mahendra and Birendra as <a href="https://nepalitimes.com/review/a-past-foretold">nationalists who upheld Nepal’s sovereignty during the Cold War</a> and commanded respect worldwide. Archival video clips of Mahendra being received by President Eisenhower in 1960 and <a href="https://nepalitimes.com/here-now/if-birendra-was-alive-nepal-could-still-be-a-monarchy">Birendra </a>by President Reagan in 1983 have been liked by thousands. Comments contrast this to the incompetence and poor standing of Nepal’s current prime ministers.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250309120340_7dab05f5703e17a82da73277f0b39bf178c1005e0758aa50077ffe1a037f4af6.jpg" data-media-id="editor_8" data-image-id="20250309120340_7dab05f5703e17a82da73277f0b39bf178c1005e0758aa50077ffe1a037f4af6" data-rendition-name="original" width="1810" height="1206" loading="lazy" alt="The ghost of monarchy returns to haunt Nepal NT"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250309120340_1ab38cdccfd076babd78579fa345520a7b2fa9c838322226a259540c8c290437.jpg" data-media-id="editor_9" data-image-id="20250309120340_1ab38cdccfd076babd78579fa345520a7b2fa9c838322226a259540c8c290437" data-rendition-name="original" width="1812" height="1206" loading="lazy" alt="The ghost of monarchy returns to haunt Nepal NT"> </figure>  While most of the people present at the demonstration included the older demographic, younger people have especially used social media to express their support for the monarchy. Young Nepalis, disillusioned with leaders who have been prime minister multiple times since the mid-1990s, are attracted to the idea of reinstating the monarchy as a form of anti-incumbent protest, but also because they have little to no memory of living under an authoritarian absolute monarchy. ‘Those who say the monarchy is paramount today are the ones who did not live through it in the past, and are dissatisfied with the current state of affairs,’ wrote Guna Raj Luitel, Chief Editor of Nagarik Daily, in an op-ed in the newspaper on Sunday.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250309120340_720d0059207b9918def39e983d9b5c114b6afb4e7ac0ed1dadd2cba2f20f9aa6.jpg" data-media-id="editor_10" data-image-id="20250309120340_720d0059207b9918def39e983d9b5c114b6afb4e7ac0ed1dadd2cba2f20f9aa6" data-rendition-name="original" width="2000" height="1333" loading="lazy" alt="The ghost of monarchy returns to haunt Nepal NT"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250309120340_bfe50ebd413d1b177ebd02df5f837038d8a04c9d343afe39be1ebcde36db893a.jpg" data-media-id="editor_11" data-image-id="20250309120340_bfe50ebd413d1b177ebd02df5f837038d8a04c9d343afe39be1ebcde36db893a" data-rendition-name="original" width="2000" height="1333" loading="lazy" alt="The ghost of monarchy returns to haunt Nepal NT"> </figure>  He added: ‘For those of us who have spent parts of our lives under the rule of the king… we have not yet forgotten those days, when the institution was unable to do any useful work, a disheartening period characterised by Nepalis being unable to speak freely.’ Commentators have especially been pointing to Gyanendra’s military coup in 2005 when he dissolved parliament, and tried to take the country back to the time of absolute monarchy, just like his father Mahendra did in 1960. Gyanendra became king after his brother and most of his family were killed in the royal palace massacre in 2001. Many Nepalis still seem to believe that Gyanendra was responsible, and some of this is reflected in comments on monarchist social media posts. As the monarchist rallies spread, Prime Minister K P Oli said last week that if Gyanendra really wanted power, he should form a political party and run in the next elections in 2027. Other leaders have urged the former king to honour the 2008 Constitutional Assembly decision to abolish the monarchy, as well as Nepal’s 2015 Constitution.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250309120340_978ef979c7774312ac00d3192803d974ea57ec45d704f89663b301f4f0cc9704.jpg" data-media-id="editor_12" data-image-id="20250309120340_978ef979c7774312ac00d3192803d974ea57ec45d704f89663b301f4f0cc9704" data-rendition-name="original" width="1832" height="1221" loading="lazy" alt="The ghost of monarchy returns to haunt Nepal NT"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250309120340_d11276de0161d258f135e8fba4d3eb37d0a9e579b06a4819c6609b4ecdbbe51e.jpg" data-media-id="editor_13" data-image-id="20250309120340_d11276de0161d258f135e8fba4d3eb37d0a9e579b06a4819c6609b4ecdbbe51e" data-rendition-name="original" width="2000" height="1333" loading="lazy" alt="The ghost of monarchy returns to haunt Nepal NT"> </figure>  &nbsp;In response, royalist leaders including Kamal Thapa, Rajendra Lingden, and Rabindra Mishra have responded that the monarchy is above the electoral system, calling for the reinstatement of a constitutional monarchy in which Gyanendra would be a figurehead. “There is no question of the king contesting an election, that is our job,” said RPP-Nepal chair Kamal Thapa in a tv interview. “The monarchy is a custodian of the nation, it is an institution above electoral politics.” However, there does seem to be a disagreement between hardline royalists who want a return to absolute monarchy in which Gyanendra would actually hold executive powers, and those who favour a ceremonial one. Gyanendra recently visited Bhutan, where he was given a royal welcome, and has made several trips to India where there is some support for reinstating Nepal as the world’s only Hindu kingdom.

The ghost of monarchy returns to haunt Nepal

Kathmandu was once a lake inhabited by <a href="https://nepalitimes.com/news/snakes-on-plains">serpents</a>, until Manjushree visiting from present-day China saw a fluorescent lotus in the water. To reach it, the sage used his flaming sword to cut a gorge <a href="https://nepalitimes.com/from-the-nepali-press/dry-port-at-chobhar-faces-resistance">at Chobhar</a>, draining the lake and turning it into a fertile valley. The Manjushree Trail Race (MTR) is inspired by this legend. There are five categories along a near-circular route around the rim of <a href="https://nepalitimes.com/banner/bringing-silicon-valley-to-kathmandu-valley">Kathmandu Valley</a>: 10k, 30k, 50k, 100k, and one that is 100 miles that is 157.7km (map, right). The 100 miles category starts at 8AM on 14 March, and runners have 52 hours until noon on 16 March to complete it. Arjun Kulung Rai’s 26:52:56 is the current record, set in 2024. “<a href="https://archive.nepalitimes.com/news.php?id=17327">The Manjushree legend</a> and the perfect loop make the race very meaningful, and I wanted to do it,” says participant Dong Sheng from the northern Chinese city of Harbin who started running in 2016 with 5k until he accomplished a 100 miler in 2022. “<a href="https://archive.nepalitimes.com/article/nation/first-edition-ultra-trail-kathmandu,1050">Running </a>is spiritual, as you are always trying to overcome what you could previously do.” Sheng is one of 131 international runners who have signed up for the Manjushree race, where there are a total of 502 participants this year, 94 of them women. The first edition of the race only had 7 runners total. Read also: <a href="https://nepalitimes.com/here-now/nepali-trail-running-champions">Nepali trail running champions</a>, Preeti Khattri “A reason this race is popular is because it is a good mix of rural and accessible,” says Jimmy Oostrom, a Dutch runner. “Often, 100-milers are way out of the way. Here, the start is only a short drive after landing in Kathmandu.”&nbsp; The 100 mile and 50km are now qualifier races for the Asia Trail Masters, an international series of trail races based in Hong Kong. Last year, a Nepali team competed and won in the Asia Trail Master Championship series in Borneo. The 100-mile category starts and finishes at Single Tree on Nagarjun, other distances have different start and end points. On the winning team was Rashila Tamang, who is part of Trailmandu that implements logistics for the race, such as recruiting and training volunteers, and marking the route. “Nepal has great <a href="https://archive.nepalitimes.com/news.php?id=9938">geography</a> for <a href="https://nepalitimes.com/here-now/mira-rai-racing-to-help-other-runners">trail running</a>, but it is still very hard to make it your career,” says Tamang.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025031219034_98b83aa3d42c7d5e8a2ef2f80dc03512374413e31eb55441234cd075bea7e113.jpg" data-media-id="editor_8" data-image-id="2025031219034_98b83aa3d42c7d5e8a2ef2f80dc03512374413e31eb55441234cd075bea7e113" data-rendition-name="original" width="1244" height="598" loading="lazy" alt="Manjushree Trail map "> </figure>  The MTR has a guidebook detailing the categories, route, checkpoints, rules and what is available at each stop.&nbsp; “If we say we’re going to start at 8, we’re going to start at 8,” says Narayan Acharya, the man behind naming the race ‘Manjushree’. “People tried to sign up after the deadline, we had to tell them no.” Acharya who builds <a href="https://nepalitimes.com/banner/foundations-for-sustainable-buildings-in-nepal">traditional rammed earth houses</a> through his company Sustainable Future Nepal, has been long involved with promoting trail running in Nepal, and hailing from Jumla himself, mentored <a href="https://nepalitimes.com/here-now/run-sunmaya-run">Sunmaya Budha</a> also from Jumla, now a trail running star in and outside Nepal. Read also: <a href="https://nepalitimes.com/here-now/sunmaya-budha-stays-in-the-running">Sunmaya Budha stays in the running</a>, Vishad Raj Onta&nbsp; The organisers are sponsoring up to 50 runners from <a href="https://nepalitimes.com/banner/portrait-of-a-photographer-in-rural-nepal">rural Nepal</a> who may not afford the Rs6,000 entry fee to participate. “It is hard to get sponsors to give us money because Nepal is still a pretty small market,” says Oostrom, currently on crutches due to an ACL injury. “We also have to take the necessary precautions to make sure we can quickly help a runner in trouble.” The logistics of an ultra trail race are more complicated than a <a href="https://archive.nepalitimes.com/news.php?id=1223">marathon</a>. Marking and maintaining the trail requires careful work, especially as signs often get lost. The <a href="https://nepalitimes.com/multimedia/the-steadfastness-of-a-long-distance-runner">long distances </a>also require runners to run through the night.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025031219030_19111e03939541b8980007437c89966dc7a8fd6246b8407440694503bf7890a3.jpg" data-media-id="editor_15" data-image-id="2025031219030_19111e03939541b8980007437c89966dc7a8fd6246b8407440694503bf7890a3" data-rendition-name="original" width="2250" height="1501" loading="lazy" alt="Manjushree Trail "> </figure>  A <a href="https://nepalitimes.com/business/buddha-air-gets-state-of-the-art-flight-tracking-system">live tracking system </a>would ensure a runner’s safety as well as prevent cheating, but for now organisers are relying on vigilant volunteers and fellow runners to find runners needing help. There are strict rules for the race, and breaking them can result in significant time penalties or even disqualification. Get food or drink assistance outside of the checkpoints and you get a penalty of 15 minutes. Miss any pieces of mandatory gear and an hour is added to your time. Take some sort of shortcut or cheat using a vehicle, and you are disqualified. There are dangers like cliffs <a href="https://archive.nepalitimes.com/page/cantilever-trail-nepal">along the trail</a>, lightning on exposed ridges, <a href="https://nepalitimes.com/banner/disasters-in-nepal-come-in-waves">landslides caused by earthquakes</a>, <a href="https://nepalitimes.com/banner/trekking-to-save-nepals-snow-leopards">leopards</a>, and hornet swarms. Ultra running takes a massive toll on the body. The brain may shut off certain areas to be able to keep going, so volunteers watch runners carefully.&nbsp; “After mile 50, your body starts digesting itself,” says Oostrom.&nbsp; Alongside Acharya and Oostrom, the organising crew is made up of race director Ashish Mishra, and Jeevan Lama and Rashila Tamang from Trailmandu. “We can execute this race well because we are all passionate runners ourselves,” says Acharya. The team has taken measures to make the race safe and comfortable for female participants. ‘Run freely, speak openly, and wear what makes you feel comfortable in our races,’ says the guidebook. Prize money is the same for male and female winners, across categories.&nbsp; Lately, Nepal has been steadily building itself as a destination for<a href="https://nepalitimes.com/banner/taking-the-high-line"> adventure sports </a>such as <a href="https://nepalitimes.com/here-now/nepal-pushes-mountain-bike-tourism">mountain biking</a> and trail running. And with the Manjushree race, enthusiasts have hopes to set the standard for other trail races in the country. Sheng has been part of big races in China. “The better the economy, and more money people have, the more they can get involved in such pursuits,” he says. “But I have to say, for the scale of this race, everything has been done very professionally.”&nbsp;

Around Kathmandu in 100 miles

Generative <a href="https://nepalitimes.com/here-now/artificial-censorship">AI models</a> such as <a href="https://nepalitimes.com/banner/chatgpt-news-about-nepal">ChatGPT</a> and Sonnet are trained on massive amounts of data that have over time enabled them to answer general questions. But they do not perform as well on narrower domains, even hallucinating or making things up.
Now here comes <a href="https://www.anthromind.com/">Anthromind</a>, a startup developed by a 28-year-old Nepali engineer Pratik Karki in the tech-womb at <a href="https://nepalitimes.com/here-now/nepal-in-the-decade-of-ai">Silicon Valley</a>, which develops datasets to improve the performance of AI models in specific areas.
Large<a href="https://nepalitimes.com/here-now/nepal-bhasa-on-google-translate"> language models </a>are ‘distilled’ by running them on smaller, higher-quality data. AI is first used to assist with labelling or generating data. After that, human experts look at the responses and explain how they are wrong, helping tune the model just right.
Karki got the idea while working at Google, where he saw that while companies were trying to create their own models, they failed because the data was of low quality. In 2024, he left his lucrative job and took a risk by <a href="https://nepalitimes.com/here-now/nepal-can-create-a-business-friendly-environment?fb_comment_id=2995148037177314_6370548419637242">setting up a business </a>that could make real impact.
It has not been easy. At Google he was one of over 100,000 employees, but after launching Anthromind, Karki has had to do sales, <a href="https://archive.nepalitimes.com/news.php?id=4323">marketing</a>, and recruiting, as well as leading a whole new team.
“At some point in your career, everything turns into sales,” Karki told us by phone. “You need to sell <a href="https://nepalitimes.com/news/why-invest-in-nepal">potential investors</a> on your vision, and you get a million no’s before a yes.” The connections he made at Google helped, and he even managed to poach a few and others became <a href="https://nepalitimes.com/here-now/nepal-has-to-curb-corruption-before-wooing-investors">investors</a>.
Karki studied in Biratnagar before moving to Kathmandu to do his A-levels where he did business courses. He remembers those formative years and credits his teachers in Nepal for encouraging him to put himself out there and to speak up when needed.
He then went to Grinnell College in Iowa where he studied computer science and statistics, and realised that he liked to code: “I especially got a high debugging a program until it worked.”&nbsp;
He went on to pursue a Master’s in Computer Science and describes the course as a pure program with some very difficult machine learning courses.
Read also: <a href="https://nepalitimes.com/opinion/comment/tech-and-transition-in-nepal">Tech and transition in Nepal</a>, Ashutosh Mani Dixit
Karki was recruited to Google from a highly selective early career program and got to work closely with the companies that were then building the generative Large Language Models that have since taken the world by storm. He worked on essential training infrastructure, including data warehousing and <a href="https://archive.nepalitimes.com/news.php?id=9825">computing </a>needs.
“Internally, we all knew about this<a href="https://nepalitimes.com/opinion/makeshift/addressing-nepals-digital-divide"> technology </a>and how disruptive they would be,” says Karki. “But I also saw its limitations.”
Karki took a calculated risk in setting up his own company, knowing fully well that for Anthromind to succeed he would need a very obsessive and disciplined mindset.&nbsp;
“Every Friday evening I look at weekly data, and what worked and what didn’t, especially in terms of getting customers,” he says. “I had to be very deliberate with everything I did.”
Karki attributes this discipline and frugality to growing up in Nepal, which he misses dearly, especially his family and the community. His best friends in California are Nepalis, they meet often and have already made plans to celebrate the approaching <a href="https://nepalitimes.com/editorial/new-year-same-difference">Nepali New Year</a> with home-made <a href="https://nepalitimes.com/banner/adventures-of-a-little-dumpling-named-momo-and-other-books">momos</a>.&nbsp;
Karki sees a lot more potential in the <a href="https://nepalitimes.com/news/it-is-it">IT industry in Nepal</a>, at the moment saturated with service-based companies when ideally new businesses should focus on products.&nbsp;
He explains how companies that provide offshore <a href="https://nepalitimes.com/opinion/tech-away/nepal-s-health-tech-industry-is-here-to-stay">tech services </a>operate in a ‘default:alive’ state, where they can carry on even if they only have one client.
The alternative is a company whose success depends entirely on the quality of the product it puts out, a ‘default:dead’ state. This forces programmers to adopt an urgent, disciplined mindset. While a lot harder and riskier, it also has higher returns.
Read also: <a href="https://nepalitimes.com/opinion/people-power/nepal-as-an-ai-power-bank">Nepal as an AI power bank</a>, Bikash Pandey
Karki is in a cohort of <a href="https://nepalitimes.com/opinion/12-full-opinion/let-s-listen-to-nepal-s-young-changemakers">young Nepalis</a> in the <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/it-is-all-about-it-in-nepal,3887">IT industry</a> who have proven that serious tech innovation can come out of Nepal. Pukar Hamal of SecurityPal was recently featured in Forbes, while Sameer Maskey’s FuseMachines has been listed on NASDAQ.
Financially independent since 18, Karki says <a href="https://nepalitimes.com/news/1-in-5-nepal-families-lack-food">Nepali families</a> should encourage their children to make such moves. Nepal’s education system should reward curiosity, instead of quelling it, to promote <a href="https://archive.nepalitimes.com/article/business/kesha-kumari-damini-awarded-by-norwegian-business-for-peace-foundation,1356">entrepreneurship</a>.&nbsp;
He says, “Students should be rewarded for thinking individually and speaking out, like I was.”

Kathmandu Valley to Silicon Valley

By sacking the person that many Nepalis credit for ending<a href="https://nepalitimes.com/news/power-cuts-are-back-in-nepal"> prolonged daily power cuts</a>, the coalition led by <a href="https://nepalitimes.com/news/nepal-government-changes-again">Prime Minister KP Oli </a>has added fuel to the fire as anti-government forces plan protests in the coming weeks. A Cabinet meeting on Monday decided to replace the Executive Director of the Nepal Electricity Authority (NEA)<a href="https://nepalitimes.com/editorial/transformer-man"> Kulman Ghising</a> with Hitendra Dev Shakya. There is a sense of deja vu since both men led <a href="https://archive.nepalitimes.com/news.php?id=9409">the NEA</a> in previous stints. &nbsp;Ghising had been NEA chief in 2016 and again in 2021, when he had replaced Shakya. Ghising is backed by Pushpa Kamal Dahal of the Maoist Centre, which is now in the opposition, and Shakya is regarded as being close to Oli’s UML. Relations between Ghising and Energy Minister Dipak Khadka have been strained for the past year after the NEA cut off <a href="https://nepalitimes.com/news/nepal-electricity-demand-soars">electricity supply</a> to industries for failing to pay dues dating back to 2016. At the time, factories were provided uninterrupted power from dedicated lines, while the rest of the country suffered power cuts sometimes lasting 18 hours a day.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250326070312_593aa13f73deedb75404e18be27a97c718c3486d67ba3bdcc6a9c7aa0405a4d7.jpg" data-media-id="editor_5" data-image-id="20250326070312_593aa13f73deedb75404e18be27a97c718c3486d67ba3bdcc6a9c7aa0405a4d7" data-rendition-name="original" width="1204" height="390" loading="lazy" alt="NEA"> </figure>  Industrialists cried foul and appealed to Minister Khadka and Prime Minister Oli, contesting the NEA’s overdue bill. Khadka, who is from the Nepali Congress (NC), is himself a <a href="https://nepalitimes.com/multimedia/missing-pieces-of-the-hydropower-jigsaw">hydropower </a>entrepreneur and his appointment as energy Minister was seen as conflict of interest. <a href="https://nepalitimes.com/latest/kulman-ghising-to-stay-on?fb_comment_id=3199622240152768_3199919450123047">Ghising is largely credited </a>for having ‘ended loadshedding’ because he redirected electricity from industry to households -- even though imports from India and increase in installed capacity worked in his favour. Following Ghising’s dismissal, there were protests at Kathmandu’s Mandala intersection on Tuesday with demonstrators holding placards that read: ‘Kulman Ghising: Architect of a Bright Nepal’. Even members of the coalition government opposed Ghising’s sacking. Information Minister and government spokesperson Prithvi Subba Gurung on Monday said pointedly that he had no knowledge of Ghising’s removal. Read also: <a href="https://nepalitimes.com/here-now/kulman-ghising-s-tenure-at-nea-in-doubt">Kulman Ghising’s tenure at NEA in doubt</a>, Ramesh Kumar Energy Minister Khadka has sought clarification several times from Ghising, accusing him of ‘insubordination’, and his main gripe was that the NEA chief worked ‘arbitrarily’ on back-pay tariffs from industrialists and making <a href="https://nepalitimes.com/news/nepal-india-power-play">energy agreements with India</a> on his own.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250325100352_3b03eec43ea6d58b854939cb3bccdec627c381d03abc58f3aba333b2c577add2.jpg" data-media-id="editor_10" data-image-id="20250325100352_3b03eec43ea6d58b854939cb3bccdec627c381d03abc58f3aba333b2c577add2" data-rendition-name="original" width="1347" height="923" loading="lazy" alt="Sacking of NEA chief exposes cronyism"> </figure>  He did not like Ghising going off to India to talk about <a href="https://nepalitimes.com/news/blueprint-for-nepal-india-electricity-trade">power trade</a>, and questioned his authority to make deals bypassing the ministry. The minister even gave Ghising a performance ‘report card’ in which he was given zero out of 100. Speaking in Parliament on Sunday, Khadka warned that Nepalis would <a href="https://archive.nepalitimes.com/article/nation/power-cuts-nepal-here-to-stay,1701">once more have to suffer load shedding </a>because of Ghising. “We are in a situation where households may soon face power cuts. So Kulman isn’t really the hero bringer of light,” said Khadka, in remarks that were lampooned on <a href="https://nepalitimes.com/news/the-social-media-contagion">social media </a>and newspaper cartoons.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250325100356_8b8eceb3a1d39f694ba38aba750ada91e648ca0a8451b2071169951d1833f732.jpg" data-media-id="editor_14" data-image-id="20250325100356_8b8eceb3a1d39f694ba38aba750ada91e648ca0a8451b2071169951d1833f732" data-rendition-name="original" width="600" height="514" loading="lazy" alt="Cartoon in Kantipur by Abin Shrestha"> <figcaption>Cartoon in Kantipur by Abin Shrestha.</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250325100356_dc19b92815359a91c6daa23d28f89a017af9aca6d97491a276e7d5d19d6fd9b0.jpg" data-media-id="editor_15" data-image-id="20250325100356_dc19b92815359a91c6daa23d28f89a017af9aca6d97491a276e7d5d19d6fd9b0" data-rendition-name="original" width="514" height="600" loading="lazy" alt="Front page of Naya Patrika "> <figcaption>Front page of Naya Patrika newspaper on Monday morning with coverage sympathetic to Kulman Ghising.</figcaption> </figure>  <a href="https://nepalitimes.com/news/nepal-suffers-another-winter-drought">A prolonged winter drought </a>and below-normal precipitation in March means <a href="https://nepalitimes.com/here-now/geopolitics-of-nepal-s-rivers">Nepal’s rivers </a>are running low, reducing the installed capacity of the mainly run-of-river <a href="https://nepalitimes.com/here-now/nepal-s-1st-hydroelectric-plant-is-a-museum-piece">hydropower plants</a> by one-third. In addition some of the bigger plants like the 456MW Tama Kosi were damaged in <a href="https://nepalitimes.com/editorial/when-it-rains-it-pours-ksqprbu3">last September’s floods</a>. The <a href="https://nepalitimes.com/news/spring-returns-to-nepal-s-mountaineering">spring season</a> shortfall coincided with India announcing it could not export electricity to Nepal during peak hours because of its own domestic demand. Ghising and Khadka appeared to be negotiating separately with India on increasing<a href="https://nepalitimes.com/news/balance-of-power"> power export to Nepal</a>, and often seemed to work at cross purposes. Read also: <a href="https://nepalitimes.com/from-the-nepali-press/more-than-half-of-nepal-s-electricity-imported-from-india">More than half of Nepal’s electricity imported from India</a> The NEA under Ghising had been making up for the power deficit by cutting electricity to industries to maintain household supply. This month, industrial corridors in <a href="https://nepalitimes.com/here-now/the-tarai-s-shrinking-forests">the Tarai </a>have been suffering power cuts from 6pm to 6am, forcing them to use diesel generators. These cuts have added to the <a href="https://nepalitimes.com/news/pokhara-s-tourism-woes">woes of powerful businesses</a> which NEA had been pursuing to pay their back dues. Industrialists had been putting pressure on the government to rein in Ghising. Two industries did play part of the sums they owed to NEA last week, just before Ghising got the sack. &nbsp; Ghising had wide support in<a href="https://nepalitimes.com/here-now/nepalis-not-so-unhappy"> Nepal’s public sphere</a>, with some speculating that he may have political ambitions. Which could be another reason that the UML and NC are wary of him, since he could be a Maoist candidate in the next elections. Ghising has said he will contest his dismissal in court.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250325100356_1ab203b400602f8780bbffd35970df35f927d2c66fc3c68be67f443f7dcd327b.jpg" data-media-id="editor_26" data-image-id="20250325100356_1ab203b400602f8780bbffd35970df35f927d2c66fc3c68be67f443f7dcd327b" data-rendition-name="original" width="1600" height="1069" loading="lazy" alt="Sacking of NEA chief exposes cronyism"> </figure>  It was during Ghising’s 2016 stint that he solved, seemingly overnight, debilitating power cuts. No doubt, he had some luck in timing, but being an electrical engineer himself also invested in upgrading transmission and distribution. “Some things were in place when Kulman Ghising came in, but what he did first was to free up 400MW from the dedicated line to <a href="https://archive.nepalitimes.com/news.php?id=9511">industrialists,</a>” recalls energy expert Kumar Pandey. Ghising also benefited from the completion of the 140km transmission line from Dhalkebar to Muzaffarpur in India, which meant Indian exports could make up for the shortfall, allowing NEA to end power cuts to households. Read also: <a href="https://nepalitimes.com/here-now/how-they-kept-nepal-in-the-dark-ages">How they kept Nepal in the dark ages</a> “He also arranged power cables to reroute energy distribution within the country, which was huge,” says Pandey. All of these actions freed up to 700MW in the evening, which Ghising was able to redistribute to the public. Ghising is also credited with effective negotiations with India to increase the export of 1000MW of <a href="https://nepalitimes.com/here-now/nepal-s-precious-electricity-going-waste">Nepal’s surplus electricity</a> in the monsoon – despite India refusing to buy power from plants with Chinese investment or contractors. Electricity exports allowed NEA to go from being a loss-making entity to earning a profit of Rs11.36 billion over Rs53.18 billion in sales. “Bad infrastructure was causing localised power cuts. A transformer in Kohalpur would burn up and wouldn’t be fixed for a month, and we had no spares,” Ghising told a <a href="https://www.youtube.com/watch?v=Xy-yWmi4wCc">YouTube interview</a> two days before his removal. “<a href="https://archive.nepalitimes.com/news.php?id=11138">Loadshedding </a>was also causing more loadshedding because consumption would soar when electricity was restored.” Ultimately, his dismissal reeks of politics, the business interest cronies and clashing egos. The only silver lining seems to be that Ghising’s replacement Hitendra Dev Shakya is also a grid development and power sector expert, and knows the sector well.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250325100356_836599bd3bcdb4d3d8f91d3f74dabe3c2976eb359690920377b7385904946ca7.jpg" data-media-id="editor_32" data-image-id="20250325100356_836599bd3bcdb4d3d8f91d3f74dabe3c2976eb359690920377b7385904946ca7" data-rendition-name="original" width="1419" height="946" loading="lazy" alt="Sacking of NEA chief exposes cronyism"> </figure>  Asking Ghising to ‘explain why he shouldn’t be removed from his position for insubordination’ essentially proved that this was a power play, and the NEA chief had to be removed because he was a ‘Maoist man’. However, the removal of a popular technocrat from the NEA could further anger Nepalis who are already disillusioned with established political parties and their cronyism. &nbsp;One barometer of public frustration is the <a href="https://nepalitimes.com/news/the-ghost-of-monarchy-returns-to-haunt-nepal">growing support on the streets even for pro-monarchist forces</a> led by the RPP and RPP-N who are planning further nationwide rallies next month.

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Sacking of NEA chief exposes cronyism