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.

Home Minister Sudan Gurung resigned on Wednesday following increasing coverage of and criticism over his investment in companies linked to controversial Nepali business figures Sulav Agrawal and Deepak Bhatta, who are currently under investigation for money laundering.
‘I am resigning from the position of Home Minister effective today to ensure impartial investigation into matters associated with me, and to make sure that there is no conflict of interest,’ Gurung wrote, saying that morality and public trust mattered more to him than office.
Gurung ended his message to the nation in English as he invoked the security forces, writing: &nbsp;‘For my country and For the respect of our security forces and For the youths of Nepal.’
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Gurung has become the second member to depart the Cabinet, serving for less than a month, despite the Nepali electorate’s hopes that Nepal would finally get a stable government after the RSP’s sweeping victory in the March elections.&nbsp;
Prime Minister Balendra Shah had sought clarification from Gurung on Wednesday after new details emerged about his shares in two micro-insurance companies, Star Micro Insurance and Liberty Micro Life, which are said to have been issued their licence by the Nepal Insurance Authority at the behest of Bhatta and Agrawal.
Gurung denied financial misconduct, saying that his investment in the two companies was included in his asset disclosure and insisting the misunderstanding is because of how the shares have been categorised.&nbsp;
Leaders within the RSP had called for an internal investigation into Gurung as they sought to maintain the party’s platform of clean governance and transparency. As such, Gurung’s position had become increasingly untenable, especially since former Labour Minister was sacked without being given an opportunity for clarification over a disciplinary breach involving his wife’s appointment to the Health Insurance Board.&nbsp;
On social media, Sah on Tuesday seemed to express dissatisfaction over the PM’s request for Gurung’s clarification.&nbsp;
Judging by the comments under Gurung’s resignation post, a significant part of the Nepali public seems to be firmly on Gurung’s side, blaming the mass media and what they call mouthpieces of old parties for driving him out of the Cabinet.&nbsp;
This is a reflection of his meteoric rise and the continued support he has maintained since he stepped into the spotlight as the leader of Nepal’s youth movement in the aftermath of the September protest.&nbsp;
Gurung has made headlines constantly ever since he burst onto the national stage, which includes questions over the degree of his and his organisation Hami Nepal’s involvement in the September 9 unrest, calls to divulge details behind Hami Nepal’s finances, and not paying five years of rent for an illegal lakefront property in Pokhara.&nbsp;
There have also been unsubstantiated claims, despite Gurung’s denial, about his ‘ties’ to the Free Tibet movement, which has made the Chinese— as well as Nepalis— wary.&nbsp;
As Home Minister, Gurung cultivated an image of a tough but approachabe leader, overseeing a series of high-profile arrests of previous political leadership and business figures even as he posted photos of sleeping in a sofa in his office, and engaged with the public on the streets and on social media.&nbsp;
As it stands, the Home Ministry was a bone of contention between Shah and RSP Chair Rabi Lamichhane before it was awarded to Gurung, who is a close ally of PM Shah. Analysts had noted that with Gurung in charge, the Home Ministry would be a hook for Shah if Lamichhane, with his share of controversies, stepped out of line.&nbsp;
Following Gurung’s resignation, the Prime Minister’s secretariat has said that the PM would take charge of the portfolio for the time being. But it will be interesting to see if and how fresh negotiations for the Ministry unfold within RSP.&nbsp;
And with his supporter base largely intact, it remains to be seen how much of an impact this setback will have on Sudan Gurung’s political aspirations.&nbsp;

Home Minister Sudan Gurung resigns

Sudan Gurung is dancing. It is 2009. He has an emo fringe falling over one eye and is spinning on a polished floor. His dance shows dedication — moves that take years of bruised elbows to land. The clip is 16 years old, and had been sitting in the dead archives of YouTube and old Facebook pages, watched by almost nobody. This month <a href="https://www.tiktok.com/@4gr4j/video/7621892206902725909">it has 1.9 million views</a>. Gurung became Home Minister on 27 March and resigned on Wednesday, barely a month into office. His<a href="https://www.tiktok.com/@aayvik/video/7626069452177542408"> pre-political life had been put back into circulation</a> at industrial speed -- the b-boying, the DJ sets, and the YouTube video of him dancing in a music clip.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026042202040_71df4d531423e7c941abde95fb8106346c70ab0afb71bbeb520cc570f14ba178.jpg" data-media-id="editor_2" data-image-id="2026042202040_71df4d531423e7c941abde95fb8106346c70ab0afb71bbeb520cc570f14ba178" data-rendition-name="original" width="2300" height="1000" loading="lazy" alt="When aura meets audit"> </figure>  The youth of Nepal, well-versed in snappy TikTok edits and aura compilations, turned the archive into a meme economy almost overnight. TikTok remixed the footage to trap beats. The comments settled on a nickname that crossed into everyday speech within days: 'Homie Minister'. <div class="embed-block"><blockquote class="tiktok-embed" cite="https://www.tiktok.com/@yalexthwreal/video/7622325255792512276" data-video-id="7622325255792512276" style="max-width: 605px;min-width: 325px;" > <section> <a target="_blank" title="@yalexthwreal" href="https://www.tiktok.com/@yalexthwreal?refer=embed">@yalexthwreal</a> <a title="sudangurung" target="_blank" href="https://www.tiktok.com/tag/sudangurung?refer=embed">#sudangurung</a> new home minister of Nepal😎 <a title="fyppppppppppppppppppppppp" target="_blank" href="https://www.tiktok.com/tag/fyppppppppppppppppppppppp?refer=embed">#fyppppppppppppppppppppppp</a> <a title="sudangrg" target="_blank" href="https://www.tiktok.com/tag/sudangrg?refer=embed">#sudangrg</a> <a title="home" target="_blank" href="https://www.tiktok.com/tag/home?refer=embed">#home</a> <a title="minister" target="_blank" href="https://www.tiktok.com/tag/minister?refer=embed">#minister</a> <a target="_blank" title="♬ original sound - •⪨н є α я т ❤н α ¢ к є я ⪩• - Music Universe 🎧" href="https://www.tiktok.com/music/original-sound-•⪨н-є-α-я-т-❤н-α-¢-к-є-я-⪩•-7308733170064231170?refer=embed">♬ original sound - •⪨н є α я т ❤н α ¢ к є я ⪩• - Music Universe 🎧</a> </section> </blockquote> <script async src="https://www.tiktok.com/embed.js"></script></div> As Home Minister, Gurung was in charge of the Nepal Police, Armed Police Force, Department of Immigration, and the country's internal security apparatus. Calling him 'homie' collapsed the distance between that office and the Discord server where the movement that brought him into power had organised itself. What is harder to explain is why the nostalgic clips did the narrative work for Gurung's political standing right up until the moment the paperwork did not. A teenager on a dance floor in a Thamel club, filmed before smartphones had decent cameras, was functioning as political currency for a powerful home minister, while a share registry was quietly filling the other column. The footage was not an argument. Gurung was not doing anything in it that related to home affairs. He was just dancing. The comments compared him to <a href="https://www.tiktok.com/@4gr4j/video/7621892206902725909">Korean film heroes</a>. A separate <a href="https://www.tiktok.com/@tandavyt7/video/7622151050128018708">48,000-like edit</a> was captioned 'Our New Home Minister Aura'. The replies were full of people saying they got chills listening to him speak. Even after his resignation, most comments on his Facebook page were supportive, saying he had been punished for pursuing truth and justice.&nbsp; Political legitimacy in Nepal has been built out of many things over the last 70 years, but it has never been built out of this. The question was always: what happens when the job starts demanding things his style, boldness, and swag cannot provide. Political aura in Nepal used to be a slow harvest, now it isn't. B P Koirala spent eight years in prison under the Panchayat. He wrote fiction at Sundari Jal. The writing survived, the prison sentences survived, and that experience became the template for what a serious Nepali politician looked like: someone the state had tried to break and failed. Legitimacy was accumulated by having their lives taken away, and refusing to bend the knee. The old mechanics of legitimacy produced politicians who could be audited. The record was made of words, dates, votes, and years behind bars. A voter who wanted to know what a leader stood for read his writings. A journalist digging for inconsistency could find it. The system was slow, often corrupt, and frequently boring. But boring was part of the job description. A minister was supposed to be slightly dull — evidence that the person was doing the unglamorous work of reading files and sitting through committee meetings. Today, boring is a disqualification. The attention economy rewards velocity and visual charge, and a politician who cannot generate either does not exist in the feed, and that means does not exist at all. The legacy parties are still issuing press statements criticising the new guard in the grammar of paper trails and procedural failure. But the audience has stopped reading, users scroll for their next viral bite. Sudan Gurung, unlike the old parties, understood exactly which grammar the feed rewarded. On his first evening as Home Minister, he posted a photo of himself sleeping on a sofa inside the ministry. Caption: creation cannot be greater than the creator, government is not above the people. The image travelled further in 12 hours than any ministerial press release has ever done.&nbsp; A minister napping on a sofa, phone-shot, zero production, read by the public as evidence of a minister who had skipped the motorcade and got straight to work. Gurung used Facebook to announce the names of former ministers and businessmen he intended to arrest. The feed was used to pre-announce state security action.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260422010456_2fa1918e1dd031d01f38b4001ee306d9414073cec0b795fa43a75cb5a8deb8c7.png" data-media-id="editor_6" data-image-id="20260422010456_2fa1918e1dd031d01f38b4001ee306d9414073cec0b795fa43a75cb5a8deb8c7" data-rendition-name="original" width="926" height="868" loading="lazy" alt="When aura meets audit"> </figure>  INFLUENTIAL INFLUENCER This is not how the Ministry of Home Affairs has ever operated. It is how a YouTuber releases a series. Sudan Gurung was a political content creator. As home minister, he was an influential influencer kinetically doing something in the visual medium. Much like Prime Minister Balendra Shah's sunglasses, Gurung's aura, authenticity and swag were a brand asset, instantly recognisable at thumbnail size. Balen's rap career supplies a pre-political archive that authenticates him the same way Gurung's DJ sets and b-boying clips authenticated him. The aesthetic is doing the work a manifesto used to do. The work is authenticity, and the strategy is auramaxxing. The emo fringe predates the ministry. The DJ sets predate Hami Nepal. The b-boying predates the earthquake, the NGO, the September uprising, the interim cabinet, all of it. Whatever Gurung is now, he was already that person before the office existed. This was the real spectacle of the Homie Minister: authenticity. Nepal's youth have grown up watching heavily-polished, talking-point ministers speak in a language aimed at nobody in particular. But that grainy archival clip of the Home Minister from 2009 was honest.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260422010456_5d6dff3a09e8b7e77dc60c3aa567c9e02b6bd5f90f94e20737ec05cc9a09023b.jpg" data-media-id="editor_7" data-image-id="20260422010456_5d6dff3a09e8b7e77dc60c3aa567c9e02b6bd5f90f94e20737ec05cc9a09023b" data-rendition-name="original" width="1800" height="1000" loading="lazy" alt="When aura meets audit NT"> </figure>  The effect transcended GenZ. <a href="https://www.tiktok.com/@ektapokharel/video/7623242573481561365">A TikTok trend</a> captioned NOT ONLY OUR HOME MINISTER, WE ARE ALSO FROM THAT ERA <a href="https://www.tiktok.com/@sonykhadka/video/7624106790266948872">has millennials posting their own</a> archive photos from the same period, aligning themselves with Gurung's pre-political aesthetic. The aura did <a href="https://www.tiktok.com/@_thakuri/video/7623397397556645141">cross-generational work</a>. It was a shared legibility, spanning at least 15 years of Nepali youth culture, with the Home Minister standing at its centre.&nbsp; The traditional politician's entire adult life is a performance of identity. Every photograph is lit for the media, every statement is vetted. The persona is the product, and the product has been in development for 30 years. This makes the old guard legible but suspect in the attention economy. A generation raised on authenticity-as-currency reads the decades of careful performance as evidence of something to hide. The polish is the problem. The nostalgic Sudan Gurung party clips inverted this. The polish was absent. The footage could not be performance aimed at the viewer, because the viewer did not exist in 2009 and neither did the political stakes. The clip was therefore read as real, in a way a press conference can never be. It was just a kid dancing, and he happened to grow up to be the Home Minister. But Sudan Gurung's job was never to go viral. The Ministry of Home Affairs requires the person running it to file a complete asset declaration and to avoid holding financial interests in crony entities.&nbsp; None of that work is content. A correctly filed asset declaration does not get remixed into a trap beat. A functioning immigration database is not a TikTok. The paperwork that constitutes actual governance is structurally boring in exactly the way the old parties are structurally boring, and for the same reason. It is the slow, procedural, checkable apparatus that the old system was built to produce and that the new system has not yet learned to replace. And it is painstaking follow-the-money paper trail investigative journalists in the legacy media who uncovered the evidence. You cannot auramaxx your way out of a share registry. You cannot post your way past a conflict-of-interest statute. No amount of fire outfits and wild DJ transitions does anything for you when a journalist pulls the initial shareholder list of Star Micro Insurance and finds your name at number 49, with Rs2.5 million in shares alongside investors linked to Deepak Bhatta and Sulav Agrawal — two men currently at the centre of a Rs 3.7 billion money laundering investigation. <a href="https://www.tiktok.com/@blox.drop/video/7622173520981658900">Auramaxxing was engineered</a> for the mechanics of reaching office. It is the reason Sudan Gurung became Home Minister and Gagan Thapa did not. The question that had not yet been tested, until this week, was whether the same weapon works when the terrain changes. The terrain does change when you assume power. This week, the answer arrived. TWO CLOCKS Two clocks had been running, and they did not sync. The first clock was built for auramaxxing. A clip posted at eight in the morning peaked by noon. A sofa photo was remixed before the minister had left the building. The feedback loop is fast and legible, and a politician playing this clock gets real-time data on what to post next. The old guard never learned to read it, which is a large part of why they lost the election. The second clock was the one the ministry actually runs on. It measures in quarters, court calendars, and the slow grind of investigation files moving between offices. A share registry takes weeks to pull. A money-laundering case moves at the speed of the prosecutor's office, which is to say, it often does not appear to move at all, until one morning it does. The legacy mass media is fed leaks, and the second clock does not care whether the minister is currently trending. The two clocks collided this week, and the second clock got there first. Faster than anyone expected. The first clock put Gurung in the Home Ministry in weeks. The second clock put him out of it in less than a month. On Sunday evening, Diyopost and Janaastha published documents showing Gurung as a founding shareholder in Star Micro Insurance and Liberty Micro Life — companies licensed by the Nepal Insurance Authority in 2022 following what reporting identified as political lobbying by Bhatta and Agrawal. A photograph also surfaced of Hami Nepal, the NGO Gurung chairs, honouring Bhatta as a donor on 21 December 2021. Gurung's first response was auramaxxed. A Monday Facebook post distinguishing ‘rumours’ from ‘facts’, insisting the shares were disclosed within his broader Rs20 million securities portfolio, promising to cooperate with any investigation. "Allegations and truth are not the same thing," he wrote. "Decisions should be based on evidence, not sentiment." It was a coherent clip, but it did not stop the clock. By Wednesday, Prime Minister Balendra Shah had sought written clarification. Leaders within the RSP itself were calling for his resignation. The opposition Nepali Congress had framed the question as one of democratic transparency.&nbsp; Gurung resigned, posting his decision to Facebook as he did everything else. Ethics, he wrote, hold more weight than any position. There is no power greater than public trust. He ended in English, invoking ‘my country … the respect of our security forces … the youths of Nepal’. Even the exit was content. And this is the asymmetry the office exposed. A politician whose legitimacy is built on fast 30 second videos is structurally exposed to a process that runs slower than the news cycle, because the archive of aesthetic proof was not engineered to answer documentary evidence.&nbsp; It was engineered to displace the demand for documentary evidence in the first place. When that demand returns, as it always does once a politician takes office, the digital archive keeps performing, but the documents keep getting uncovered. And the two tracks do not communicate. The old guard knew this clock because they had no other clock to know. What they lost in charisma they gained in durability: a politician built over 20 years of parliamentary record is harder to dislodge with a single document because they have already survived thousands of documents. The new guard has not been stress-tested against its own paper trail. Sudan Gurung has now been tested, and the test is over, and the template has been written in his exit rather than his survival.&nbsp; A politician can enter office on the strength of a dance clip, and the same class of evidence — share registries, company filings, founding-shareholder lists at number 49 — that would have ended the career of a politician in a previous era of Nepali politics has ended his. The second clock got there. The feed did not save him. Or not entirely. Because the resignation itself is now in the feed. The Facebook post. The 46 brothers and sisters. The epic sign-off. Within hours of stepping down, Gurung had already re-enrolled his exit into the same register that put him in office. The clip of the Home Minister dancing in 2009 is still in circulation. The sofa photo still reads as sincerity. The investigation into the micro-insurance shares will move at the speed of Nepal's prosecutor's office, which is to say, at a speed the feed has long since outrun. The movement that installed Gurung in the name of ending elite capture has had its answer about whether its own hero is subject to the same audit it demanded of everyone else. He walked — or was walked — before the audit ran its course. The resignation was framed as moral choice rather than forced exit, and the framing is already winning. Whether that framing holds is the next test. Auramaxxing, it turns out, is a weapon that works in one direction only: it got him the job, and when the documents arrived, it did not save him. But it may yet save the person. These are not the same thing. If the technique is wounded, it is not yet dead. The next Nepali politician with a pre-political archive and a phone is watching how Gurung exits, not just how he entered. And the answer is: you exit the same way you entered: on Facebook. In your own voice. Before anyone else writes the caption. Whether he comes back is the thing to watch. Whether the technique does is already decided. &nbsp; &nbsp;

When Aura meets Audit

Just three weeks in, Prime Minister Balendra Shah has already shed two ministers, and is having to contend with the economic fallout of the West Asia war plus the global order that it has upended.&nbsp;
The new dispensation in Nepal has aroused interest in New Delhi, Beijing as well as Washington. The ouster of Home Minister Sudan Gurung, whose first act in office was to arrest former prime minister K P Oli, has foreign policy wonks scratching their heads.
The US sent Assistant Secretary of State for South and Central Asian Affairs Samir Paul Kapur on a special mission to figure out what is happening in Kathmandu. In town at the same time was Cao Jing, Deputy Director General of the Asian Affairs Department of China’s Ministry of Foreign Affairs. And Prime Minister Shah is preparing for an official visit to India.
For the Americans, it is mostly about containing China and looking after the welfare of Tibetan refugees, while pushing its own MCC Compact and State Partnership Program (SSP). Beijing is mindful of the post-Dalai Lama era, and does not want instability in Nepal to encourage free-Tibet activities. India lately seems more wary of American activity in what it considers its backyard.
The Chinese appear relieved to see Sudan Gurung go. Only last week, Ambassador Zhang Maoming met Gurung during which he raised the issue of Tibetan and Taiwanese activities in Nepal, seeking firm commitment that Kathmandu would not harbour activities hostile to Beijing.
“Geographically we are close to Tibet and not to the Mainland, so China remains suspicious of us, especially after the TOB and free-Tibet components that emerged from the GenZ protests,” says geopolitical analyst Indra Adhikari.
Kapur, for his part, met RSP Chair Rabi Lamichhane, Finance Minister Swarnim Wagle and Foreign Minister Shishir Khanal. Although investment and infrastructure was on the agenda, the main issue seems to have been about Tibetan refugees. In nearly parallel meetings with ministers, Cao Jing warned Nepal not to be too cosy with the Americans.
For Indian academic and Nepal watcher Sukh Deo Muni, all this harks back to American activity in Nepal during the height of the Cold War. He tweeted: ‘US senior diplomat Paul Kapur's statement in Kathmandu must be understood carefully in New Delhi. He said the US does not want China or any other country to dominate Nepal.’&nbsp;
‘Any other country’ could be a pointed reference to India, and what this means is that Nepal may now have to navigate even more carefully a tri-polar world order reshaped by the West Asia war.&nbsp;
Nepali journalist based in New Delhi Akanshya Shah agrees that the United States may not be seeing Nepal through the Indian lens anymore, while New Delhi does not want heightened US activity in what it considers its sphere of influence. All this is further complicated by recent frostiness in Washington-New Delhi ties.
“New Delhi doesn’t have that familiarity factor it used to with old leadership in Nepal, but it is curious about what the young Balen Shah will do and what kind of relation he will pursue with India,” she adds. “Certain decisions of the Balen government such as ending VIP culture and delivering passport at homes have hugely resonated with the Indian people, he has in some ways become a role model among the youth in India as well.”
India has invited Prime Minister Shah for an official state visit, which will be his first foreign trip as per tradition. Shah graduated in structural engineering from a college in Bengaluru, and knows India well. Shah has injected religious elements into his public exposure as prime minister and this could help project Nepal’s ‘soft power’ in dealing with India.
But he has also been a nationalist on the Limpiyadhura map dispute, and there are other thorny issues like air connectivity, river projects and power exports that need to be ironed out.&nbsp;
Sukh Deo Muni warns that the old Indian diplomatic approach based on religio-cultural stakeholders in Kathmandu may not work anymore. He wrote: ‘India's Modi government must prepare itself well to deal with new Nepalese leadership and their empowered support base, which is self-confident, highly nationalist, aspirant and impatient.’
The RSP’s 22-page National Commitment document said Nepal should abandon its historical ‘buffer state’ identity to serve as a ‘vibrant bridge’ between regional and global powers. Much of this debate is theoretical, and there is much navel-gazing that distracts from regional realpolitik.&nbsp;
“Whether we are a buffer state or a vibrant bridge, in today’s heightened geopolitical scenario we have to have good relations with good neighbours,” explains Akanshya Shah. “What is of paramount importance is that our ties are based on the aspirations of the young generation, so that they are engaged.”
Indra Adhikari goes as far as to say that the concepts of “buffer state” and “vibrant bridge” have both failed and Nepal is neither. “We have had zero roles in mediating or de-escalating the tensions between India and China to call ourselves a buffer state. As a vibrant bridge, we cannot facilitate trade of the two countries. The new government should have researched and consulted more before proposing the same outdated and failed foreign policy concepts.”&nbsp;
What will be much more important for Prime Minister Shah is to continue Nepal’s traditional policy of ‘equidistance’ and convince his interlocutors that it is not an anti-Indian stance.&nbsp;
“At a time when there is increased interest of big powers in Nepal, we need to do a bit of our own homework for the systemic reforms we want,” says Akanshya Shah. “As for India, we first need to clearly define what we want on connectivity, energy and culture. But most importantly, we have to capitalise on the goodwill of India which we haven’t been able to in the past.”
Adds Indra Adhikari: “When it comes to fundamental aspects of foreign policy that ensures and enhances the well being of our citizens, national parties should all have one unified voice that doesn’t change when the government does. Only then the future generations can own it.”

Love thy neighbours (and America)

Prime Minister Balendra Shah sought written clarification from Home Minister Sudan Gurung following news of his investment in two companies linked to controversial Nepali business figures Sulav Agrawal and Deepak Bhatt, who are currently at the centre of a Rs3.7 billion money laundering investigation.
Home Minister Gurung's secretariat said that it has responded to the PM and submitted a written explanation. This comes after Home Minister Sudan Gurung issued a public clarification about the new developments regarding his investments on Monday.&nbsp;
Gurung is listed as a founding shareholder of two micro-insurance companies Star Micro Insurance and Liberty Micro Life, having acquired shares amounting to Rs2.5 million. The two companies are said to have been issued their licence by the Nepal Insurance Authority at the behest of Bhatt and Agrawal. Family members and close aides of both Bhatt and Agrawal have stakes in the two companies.&nbsp;
Bhatt, chairman of Infinity Holdings, is a power broker accused of using his political connections to secure and manipulate public procurement contracts, influence policy changes ass well as leadership appointments to regulatory institutions including the Securities Board of Nepal and Nepal Insurance Authority.&nbsp;
Meanwhile, Shanker Group vice-chair Sulav Agrawal was also arrested earlier this month as part of a broader money laundering probe as well as an investigation into the group’s finances. Agrawal was previously arrested during the Covid-19 pandemic after he was found selling &nbsp;67 infrared thermometers from a vehicle with diplomatic credentials. At the time, Bhatt is said to have used his connections to facilitate Agrawal’s release.&nbsp;
Critics have raised concerns the lack of detailed disclosures on Gurung’s part about investments tied to the very figures that his Home Ministry is in charge of investigating. There are also questions as to the source of his investment, which Gurung said in his clarification were raised through loans.
In his clarification, Gurung denied concealing his investments, saying that his shares in the two companies are part of in his over Rs20 million portfolio included in his asset disclosure and insisting the misunderstanding is because of how the shares have been categorised. &nbsp;
On his name and portfolio being associated with controversial figures, he responded, ‘There are hundreds to thousands of shareholders in a company. Buying shares does not constitute a partnership with anyone.’&nbsp;
He continued: ‘If that is the basis, then everyone with investments in those companies must be held accountable, which is not fair. Investments in the companies include those from media houses and banks. Are they all guilty?’
Leaders within the RSP have called for internal investigation into Sudan Gurung, to maintain the party’s platform of clean governance and transparency.&nbsp;
This comes after the sacking of Labour Minister Dipak Sah earlier this month after the RSP found him to be in breach of the party code of conduct following the reappointment of his wife to the Health insurance board. Sah was not given the opportunity for clarification prior to his departure.&nbsp;
Critics have said that the party is reverting to the patronage-driven politics of previous leadership following the appointment of figures close to RSP leadership in various key positions.
Many influential business owners elected to the House with direct stakes in the business, finance, tourism, and infrastructure sectors sit in Parliamentary Committees that would directly benefit their interests. &nbsp;
On Monday, RSP appointed Bhupdev Shah, who previously was a part of Balen Shah’s secretariat during his tenure as Kathmandu Mayor, as the party’s general secretary. Some have questioned the party’s decision to appoint Shah without going through an election process in its upcoming general convention.&nbsp;
Shah’s appointment comes as there is increased public attention over members of the Prime Minister’s inner circle being appointed to key advisory positions as well as to head governance reform committees.

electric-transmission-lines

Hydrocarbon to hydropower

Balance of Power

Challenge of the millennium

Power politics delays MCC in Nepal

Power politics delays MCC in Nepal

Home Minister Sudan Gurung resigns

When Aura meets Audit

Love thy neighbours (and America)

PM seeks clarification from HM