The mountains of western Nepal have always been food deficit because of the lack of irrigation. Farmers migrated to the plains, where farming has been easier. But a searing heatwave this year accompanied by a delayed monsoon has led to a water crisis that threatens to undermine Nepal’s gains in achieving the UN’s Sustainable Development Goals (SDG). The climate crisis is a water crisis, and it has hit food production, nutrition and the availability of safe drinking water.&nbsp; Not everything can be blamed on climate breakdown. Wells that used to be the last resort for rice planting, for example, have gone dry because of a falling water table. In the highway town of Attariyia, there used to be five deep tubewells that supplied 4 million litres of water each day to the city’s 5,500 households. In the last three years, all but one of them has dried up. The municipality then drilled four more 80m deep wells, but even these have water only for six months in a year.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240630100656_5bddc97ff2727a37fbc7840675384f93678a8eeeb21136bda739f3e1af801bb9.jpg" data-media-id="editor_0" data-image-id="20240630100656_5bddc97ff2727a37fbc7840675384f93678a8eeeb21136bda739f3e1af801bb9" data-rendition-name="original" width="1949" height="1299" loading="lazy" alt="water crisis in Tarai Nepal"> <figcaption>Towns in Tarai are parched for drinking water, there is no water for irrigation. They have to dig deeper for water and even then, new borewells have dried up. Photos: UNNATI CHAUDHARI</figcaption> </figure>  In the city of Dhangadi with a population of 300,000 on the Indian border, the municipality dug three deep wells after household wells went dry. This summer, even the tubewells ran out of water. The situation is similar in other nearby border towns. Experts say the reason for the falling water levels in the acquifers has more to do with over-extraction of groundwater both in Nepal and neighbouring India, where farmers get subsidised electricity for irrigation pumps. The area’s industries and farms also have their own wells that have tapped into what used to be a plentiful groundwater supply. “The water begins to dry out after the end of winter,” says Phulram Chaudhary of the nearby town of Krishnapur. “And till the monsoon arrives in June there is no water at all.” Indeed, towns and cities desperate for water are drilling ever deeper for precious water, using up a diminishing supply in the groundwater. Milanpur town dug a 90m deep borewell, but it ran out within ten days.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024063011064_8a3fd7f3f9daa81d3e7dabe15e6b56d5000351e2ba040797a77cfb8e82903307.jpg" data-media-id="editor_1" data-image-id="2024063011064_8a3fd7f3f9daa81d3e7dabe15e6b56d5000351e2ba040797a77cfb8e82903307" data-rendition-name="original" width="6960" height="4640" loading="lazy" alt="Water crisis in tarai Nepal"> <figcaption>Over-extraction of ground water both in Nepal and neighbouring India is causing water lavels to fall in the Tarai. </figcaption> </figure>  The over-exploitation of ground water by an expanding populating and growing household and agricultural use has magnified the impact of climate breakdown which has led to chronic winter drought, heatwaves and erratic monsoons in western Nepal. “Ten years ago, it was enough to drill 20 metres to get water all year round, now it is no water even at 80 metres,” says Kalidevi Chaudhary, a farmer in the village of Kailari. She adds: “There is no water for drinking. Don’t even ask me about irrigation.” Water expert and professor at Tribhuvan University’s Central Department of Environmental Science Sudeep Thakuri says research has shown that the groundwater table across the Tarai has dropped mainly because of over-extraction, denudation in the catchment areas of the Chure, sand mining in the rivers, as well as climate change. “We have disturbed the water cycle, and the climate crisis has made the problem more acute with long droughts and uncertain monsoons,” Thakuri says. “This means there is not enough recharge of groundwater.” The distance between borewells and tube wells has also decreased as Tarai settlements grow and water demand increases. Indeed, 140 boreholes have been dug in Kailali and Kanchanpur, out of which only 91 still have water.&nbsp; Additionally, water has also been extracted through 1,001 deep tube wells in these two districts, according to the Groundwater Resources and Irrigation Development Division offices there.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024063011064_dc58f42acd2c79ead04f8175b24deb04a3c05244f8b6929e4dd42fd1d2d679ce.jpg" data-media-id="editor_2" data-image-id="2024063011064_dc58f42acd2c79ead04f8175b24deb04a3c05244f8b6929e4dd42fd1d2d679ce" data-rendition-name="original" width="6960" height="4640" loading="lazy" alt="Water crisis in tarai Nepal"> <figcaption>Tarai’s groundwater is being used as a bargaining chip by elected officials, who have drilled arbitrarily to appease voters.</figcaption> </figure>  Nepal’s provincial and local governments have invested heavily in subsidising drilling for groundwater, as per the federal policy of maximum utilisation of groundwater with a budget to drill 100 borewells.&nbsp; Tara Dutta Joshi, head of the Mahakali Irrigation Project in Kanchanpur says that although the aim was to use the groundwater extracted from these projects for the next 20 years, six of the 90 boreholes have already dried up.&nbsp; While tube wells pump up water from up to 40m feet below ground, there is no water to be found at this depth anymore in most of the western Tarai. Meanwhile, boreholes require drilling up to 110m, and artesian water is extracted between 110-400m below.&nbsp; Experts say the Tarai’s groundwater is being used as a bargaining chip by elected officials, who have drilled arbitrarily to appease voters. There is a lack of research as well as policy regarding how many boreholes can be drilled in a given area, and how much water can be extracted.&nbsp; Sankar Dutta Awasthi of Kailari village says federal decentralisation led to competition among local politicians to see who could supply more water to their electorates. Indeed, 1,200 small-scale groundwater projects have been constructed in this municipality since the formation of the local government in 2017 in addition to larger-scale projects carried out by the provincial and federal governments. “Elected officials are far more concerned about how to repeatedly ensure groundwater projects in their constituency than about how this uncontrolled extraction is going to affect the region in the future,” says Awasthi.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024063011064_9da4708137cda6375aaf5953f857b643fe85d223b8d8fb2fcf81e66198f53377.jpg" data-media-id="editor_3" data-image-id="2024063011064_9da4708137cda6375aaf5953f857b643fe85d223b8d8fb2fcf81e66198f53377" data-rendition-name="original" width="6000" height="4000" loading="lazy" alt="Water crisis in tarai Nepal"> <figcaption>One tubewell used to be enough to sustain a village some decades ago, while today even three tubewells in one household in not enough to fulfil basic water needs.</figcaption> </figure>  One of the bores drilled in Kailari was for Ramesh Chaudhary four years ago for irrigation, but the water dried up within two years before a canal could be completed. Nearby in the village of Rampur, a 200m deep borewell drilled for irrigation also went dry.&nbsp; “The water never even reached any farmer’s field, what a waste of Rs10 million,” says Chaudhary. Water expert Tarka Raj Joshi notes that one tubewell should be enough to sustain a village some decades ago, while today even three tubewells in one household in not enough to fulfil basic water needs.&nbsp; “The local, provincial, and federal governments’ water distribution schemes will have a major impact on groundwater levels in the Tarai,” says Joshi. “No one is thinking about what this crisis means for the future.” The shortage of water threatens to undermine Nepal’s gains in reducing infant and child mortality as targeted in the SDG because children are forced to drink contaminated water. Their nutrition is also affected as food production is reduced because of lack of irrigation water. All this feeds into the outmigration trend. The answer is to allow ground recharge through regeneration of trees in the Chure, zoning to regulate rampant urbanisation, a tax on extraction of deep groundwater, and channeling water from the Karnali and Mahakali rivers to augment supply so there is less reliance on acquifers. <h2>Water shortage drives Surkhet villagers out</h2> ----  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024063011060_7ce1243b2fe49f183bd338cc25af8347c1602badcdf112fcb53b03db9b116078.jpg" data-media-id="editor_4" data-image-id="2024063011060_7ce1243b2fe49f183bd338cc25af8347c1602badcdf112fcb53b03db9b116078" data-rendition-name="original" width="1536" height="976" loading="lazy" alt="water crisis in Tarai Nepal"> <figcaption>Rekcha residents marched to the municipality office with pitchers in their staw basket to demonstate their desperation for water. Photos: LAXMI BHANDARI</figcaption> </figure>  The delay in the onset of the monsoon rains in June meant that the village of Rekcha had a severe shortage of water.&nbsp; Residents started their day as usual, placing pitchers in their straw baskets by the community taps. But instead of heading to the wells to fetch water, they marched to the municipality office to demonstrate. The village’s Water Supply Struggle Committee was led by Ward member Tapendra Chhetri who had to resort to a sit-in outside the municipality out of desperation for water. Rekcha used to be an ideal place for settlers because of its fertile soil and plentiful water. Even though the 11 wells in the village produced enough water to sustain its families for decades, they have now all dried up.&nbsp; “Villagers now collect what little water is left on the bottom of the wells, using cloth for filtration,” says ward member Chhetri. “This village is dying of thirst.”&nbsp; The extreme water shortage has begun to drive residents out. Until five years ago, Rekcha village had 115 households, but 35 families have migrated elsewhere since. Khagisara Shahi was one of the villagers who walked with her water pitcher to the rural municipality headquarters. Like the rest of her neighbours she is finding it increasingly difficult to survive in Rekcha.&nbsp; “Our pleas fell on deaf ears, so we walked all the way here with our pitchers to make the leadership aware of our plight,” says Shahi. “We make do at other times, but it is impossible to live without water, especially when it is getting hotter.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024063011060_689983a311f320cec4427b7f0496cf9b4f6ff5dae0840bfec6b254d8c19abfac.png" data-media-id="editor_5" data-image-id="2024063011060_689983a311f320cec4427b7f0496cf9b4f6ff5dae0840bfec6b254d8c19abfac" data-rendition-name="original" width="1203" height="679" loading="lazy" alt="water crisis in Tarai Nepal"> <figcaption>Now that wells have dried up in Rekcha, the journey to other sources of water is even longer, and the drudgery falls on women.</figcaption> </figure>  Even when the village’s wells had water, it used to take hours of standing in queue for each household to collect water from their homes. Now that the wells have dried up, the journey to other sources of water is even longer, and the drudgery falls on women. “There is not enough time in the day to do all the housework, look after the farm and livestock, and fetch water,” says Shahi. Four years ago, the rural municipality made plans to bring water up to the village from the Karnali river, for which they allocated a budget of Rs17.2 million. However, the project fell through due to difficulties with road access.&nbsp; Chaukune Rural Municipality Chair Khadka BK says that local government resources alone will not be enough to provide drinking water to Rekcha. “The remoteness of the village means we need federal and provincial support.” Meanwhile, the villagers look down on the clear blue water of the snowfed Karnali River below, while their fields are parched and their children are complaining of thirst. Laxmi Bhandari This article is brought to you by <a href="https://nepalitimes.com/" target="_blank">Nepali Times</a>, in collaboration with <a href="https://inpsjapan.com/en/" target="_blank">INPS Japan</a> and <a href="https://sgi-peace.org/" target="_blank">Soka Gakkai International</a>, in consultative status with UN ECOSOC.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240630110640_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758.jpg" data-media-id="editor_9" data-image-id="20240630110640_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758" data-rendition-name="original" width="680" height="103" loading="lazy" alt="SDG logo"> </figure>

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Climate breakdown magnifies western Nepal’s woes

The recently concluded general election in India was shrouded in irony. The six-week-long voting period coincided with one of the worst heat waves yet recorded, but there was hardly any discussion of climate change or environment-related issues in the public political discourse. The idea that the climate is political is clearly still to drive home to the average Indian voters, politicians, and the media alike.
The worst of the heatwave this year in northern India was recorded in late May, coinciding with the 7th phase of the election when many parts of the region went to the polls. In Delhi’s Mungeshpur and neighbouring areas, temperatures reportedly soared to 52.9°C. However, the Indian Metrological Department issued a clarification days later that there was an error in the weather sensor which resulted in an additional 3°C reading over the actual temperature. Regardless, the heat took its toll.
As of early June, the total number of heat-related deaths in India for 2024 was pegged at 219. Among these, at least 33 were officials and personnel on election duty who succumbed to heat wave-related stresses in the 7th phase of the election alone. Public sector workers in India are compulsorily bound to perform election duties as and when required.
While sweltering heat engulfed northern India, the north-eastern states of Assam, Manipur, Mizoram and Tripura were battling the wrath of Cyclone Remal which flooded multiple cities, destroyed homes, drowned railway tracks and washed away bridges, cutting off the region from the rest of the country. Incessant rains induced by the cyclone caused massive landslides in Mizoram which killed at least 39 people while dozens were reported missing.
The heatwave that gripped India during its mammoth election was seen as a concern in that it was deemed to cause low voter turnout (pictured, above). Many media outlets speculated how this would affect the election results and particularly the prospects of the ruling party. Some argued that the Election Commission should have taken care to ensure that voting days did not coincide with heat-wave conditions.&nbsp;
But there was hardly any discussion on what was causing these extreme temperatures, (or the cyclone), nor any debate on the responsibilities of government to address environmental and climate change issues. In fact, the issue of climate change and environmental degradation were conspicuously absent from the mass discourse as seen through social media engagements, and the mass media’s focus.
The election manifestoes of both major parties, the Bharatya Janata Party (BJP) and the Indian National Congress did include measures to tackle climate change and environmental issues.&nbsp;
The BJP’s manifesto had a section titled “Modi ki Guarantee for Sustainable Bharat”, outlining a broad range of plans to address environmental issues including climate change while also underlining what it has achieved so far.&nbsp;
The Congress’ manifesto had a section titled “Environment, Climate Change and Disaster Management” which aimed to, among other things, institute an “independent Environment Protection and Climate Change Authority to establish, monitor and enforce environmental standards and to enforce the National and State Climate Change plans”.&nbsp;
Climate change and environmental issues were not totally absent from the electoral focus of the political parties, however tokenistic they were.
However, the point remains that no political party leader or politician brought up climate change or environmental issues in their electioneering, not even when a prominent leader fainted due to heat stress during campaigning in Maharashtra.&nbsp;
While the Congress and its INDIA alliance partners campaigned for votes on issues of rising prices, unemployment, crony capitalism and corruption, and the dangers to constitutional democracy, the incumbent party based its campaign on rebutting the allegations of the opposition while trying to drum up religious and communal sentiments against minorities.
Clearly, the political leaders do not see climate change as a worthy agenda to bring to the masses in their campaigns for votes because the people do not seem to demand such an agenda.&nbsp;
According to a pre-poll survey conducted by a New Delhi based Lokniti-Centre for the Study of Developing Societies in 2024, employment, inflation, and taxation were the primary concerns for the average Indian voter. Further, a survey of young Indians by Deloitte in 2023 found that Indian Gen Z place climate change as their fourth key concern after education, unemployment and mental health.&nbsp;
The Indian millennials do find climate change to be a major concern but not on the same plane as economic growth and unemployment. Perhaps this explains why climate change and ecological issues are still absent from the political thinking of the masses. Perhaps the green agenda is yet to find resonance with the average Indian voter who places more emphasis on what is rather controversially called the ‘brown agenda’ concerning the fulfilment of basic needs such as food, clothing and shelter.
However, in the larger scheme of things, this is rather dangerous. Climate change is an existential crisis for a country like India where the majority of the population are poor and thus particularly vulnerable to climate change-induced disasters. It is a country that still depends largely on agriculture for employment and food security – a sector inextricably reliant on favourable climatic conditions to flourish.&nbsp;
In the face of a changing climate, the future of the present and forthcoming generation is at best uncertain. The public has the responsibility to demand that their representatives and governments address issues of environmental degradation including emissions, air pollution, clean and safe drinking water, demand afforestation programmes and resist unnecessary clearing of forests for “development projects” without proper relocation or alternatives being planned.&nbsp;
The media should do its job by holding governments accountable and informing the masses about the state of the environment rather than being beholden to the powers that be. It is of crucial importance that the Indian public political discourse no longer remains limited to a rhetorical and polarising agenda of religion and caste, but attends to issues of the existential threats of climate change and environmental security. India’s future might depend on it.
Robert Mizo is Assistant Professor of Political Science and International Relations at the University of Delhi and holds a PhD in Climate Policy studies. He is currently a Research Fellow at the Toda Peace Institute, Tokyo.
This article was issued by the Toda Peace Institute and is being republished from <a href="https://toda.org/global-outlook/2024/climate-change-the-missing-agenda-in-indias-recent-elections.html">the original</a> with their permission.

In the heat of the moment

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131156/63723b569c7e80680e0c95b5jpeg.jpg" alt="" width="1170" height="739"/><figcaption></figcaption></figure>As an unseasonal heat wave hit northern India earlier this year, Nepal Tourism Board launched a promotion campaign with the catchy Hindi slogan: “Garmi Se Behal? Chalo Nepal” (Suffering from the heat: Let’s go to Nepal).If current trends in global heating continues, that may be more than a tourism slogan.Many recent studies predict increased migration due to climate change-induced sea level rise, droughts, and extreme events. In fact, some of this is already happening in South Asia and across the world.People through history have migrated as a strategy to overcome various types of crises. Families and individuals take voluntary decisions to move to a new place, seeking a better life. Cities can act as powerful magnets for those seeking new opportunities.But increasing heat caused by the climate crisis is the new lived reality in the Indo-Gangetic plains. Rising wet-bulb temperatures (a combination of heat plus humidity) is emerging as a major health risk that could have significant socio-economic consequences such as migration.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131156/63723b599c7e80680e0c95b6jpeg.jpg" alt="" width="1200" height="1200"><figcaption> </figcaption></figure>An average ambient wet-bulb temperature of 35°C, if it persists for long enough, can lead to heat stress, heat stroke and even death. Sleeping outdoors at night or being in the shade cannot cool the body enough.Air conditioning can help, but low-income families cannot afford it. Surge in energy demand during recent heat waves has already caused frequent power cuts across the region as more energy for air-conditioning overloaded electricity networks.This year, I lived in New Delhi between March and June. The monthly electricity bill doubled compared to February. Increased use of air conditioning requires additional energy, which in India comes mostly from coal-fired thermal plants and add to greenhouse gas emissions.Chemical coolants used in older air conditioners models are about 7,000 times more potent greenhouse gases than carbon dioxide. Their increased use adds to further warming.In contrast to New Delhi, Kathmandu during this time felt naturally air-conditioned. But even Kathmandu Valley with higher humidity than in the past was uncomfortably hot in August and September. There were occasional power-cuts, and it was difficult to sleep without fans.Rising average global temperatures, heat island effects, and the degradation of natural ecosystems like water bodies and green spaces, combined with the added moisture in the air, will likely lead to increased heat in the Indo-Gangetic plains, Nepal’s Tarai and valley towns.So, will the rising average summer temperatures and heat in the Ganga plains and across the Indian landmass lead to increased migration to the cooler upland Himalayan areas in future?Theoretically, people may move to cooler regions like Uttarakhand, Himachal Pradesh, Darjeeling, as well as the mountains of Nepal and Bhutan. Just like when the British ruled India, they moved seasonally to ‘hill stations’ like Darjeeling, Shimla, and Nainital to avoid summers in the plains. When and how could that happen?Traditional migration patterns, however, have been the opposite, where people from the hills move to the cities in the plains for jobs and better economic opportunities.But during the summer, the Tarai and valley towns in the hills of Nepal will also get hot and humid. Temperatures are expected to rise in the Himalaya as well.There are other unknowns: How many people will move? Will it be internally from the Tarai plains, hot river valleys, or will people also cross national boundaries? Answers to these questions can have mind-boggling social and political implications.In the meantime, it may be worthwhile to reflect on past experience of the potential impact of mass tourism on sensitive Himalayan ecosystems so that we can take ameliorative action.Increasing heat will impact people’s ability to work, grow food, and seek health care. It will hurt the poor and elderly the most. In Nepal, we have not yet recognised increasing heat as a potential problem– both in terms of threats in the Tarai and river valleys, and the environmental implications of possible move of people up the mountains.There has been no systematic research of this issue. The least we can do is start to talk about it.Ajaya Dixit is Executive Director of the Institute for Social and Environmental Transition (ISET) Nepal.

Garmi Se Behal? Chalo Nepal.

Nepalis worship the sun, and mark its seasonal passage with festivals. Adding to that spiritual reverence now is the economic relevance of solar power. Fast-flowing Himalayan rivers give Nepal a total feasible hydropower generation capacity of 48,000MW, of which only 3,600 has so far been harnessed. Yet, Nepal’s total solar power potential has been calculated to be nearly 10 times higher at 432,000MW. &nbsp; With over 300 days of sunshine a year, the country could produce 3.6 to 6.2 units of electricity per square meter based on its solar radiation levels.&nbsp; This potential, combined with decreasing installation costs of Chinese-manufactured photovoltaic cells and other means, is a viable and affordable alternative to Nepal’s over-reliance on hydropower which faces concerns about the destruction of riverine ecosystems, as well as risk from glacial lake floods caused by climate breakdown. However, restrictive domestic energy policies and geopolitical sensitivities mean Nepal is failing to diversify fast enough to tap this tremendous solar energy potential. Nepal’s hydropower generation is almost entirely from run-of-river projects that do not have large reservoirs. Many such projects in Nepal and across the Himalaya have been swept away by glacial lake outburst floods in recent years.&nbsp; Such risks and limitations to hydropower should have prompted the Nepal government to jump-start investment into solar farms, but the main reason is that the Nepal Electricity Authority (NEA) caps solar power at just 10% of total capacity. There is no official explanation, but it is likely due to the outdated perception that solar technology cannot supply a consistent energy stream at evening and morning peak loads.&nbsp; But today, there are plenty of ways around it, including pump storage schemes that use daytime solar power to pump water from a river to a reservoir and drain it to generate electricity at night. Battery technology is now more advanced, and affordable enough to make grid-scale batteries feasible.&nbsp; But then there is an issue of tariffs, which are much lower for solar at Rs5 per energy unit, and competitive bidding forces companies to lower it even further. But there is no bidding process for hydropower and licenses are given out on a first-come, first-served basis with a fixed rate of Rs6.5 per unit regardless of location.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025112303118_c3280cddae6f3305d07319011dd9c187005822a9b905bb849c36b95e3ad0d516.png" data-media-id="editor_0" data-image-id="2025112303118_c3280cddae6f3305d07319011dd9c187005822a9b905bb849c36b95e3ad0d516" data-rendition-name="original" width="1109" height="887" loading="lazy" alt="Here comes the sun"> </figure>  SUPPLY VS DEMAND Hydropower is supply-driven, while solar responds to demand, so under such a discouraging scenario, solar power accounts for only 5% of Nepal’s total energy mix. “Given the environmental risks to hydropower, investors are now demanding tariffs on hydropower to be increased. So the question to the government is, are you paying more money for hydropower or willing to buy more of the cheaper solar power,” said energy entrepreneur Kushal Gurung. Solar investors are lobbying the government to raise the cap on solar power to 30% and expand zoning policies so that solar plants can be built in areas with high potential, such as Dolpo and Mustang in the trans-Himalaya. These regions are sparsely populated, arid, have a cold climate and high solar radiation levels — ideal conditions for photovoltaics. Solar power’s biggest advantage is its cost-effectiveness compared to hydropower, with the operating cost of a hydropower plant up to four times higher than of a solar plant of the same generation capacity. Investors are no longer assured of a return on investment on hydropower due to climate risk which have increased insurance premiums. “Last year, when the government opened a bidding for 800MW of solar power, the private sector was ready to invest 3,000MW. Both banks and investors were convinced about the potential for solar energy, but the government and especially the bureaucracy, was not on the same wavelength,” added Gurung.&nbsp; Interim Energy Minister Kulman Ghising is said to be interested in increasing the cap on solar energy, but there is a question whether he will remain in office since he has launched his only Ujyalo Nepal party to contest elections in March. GEOGRAPHY AND GEOPOLITICS In 2018, Nepal’s only foreign private equity form Dolma Himalayan Climate Fund (DHCF) pitched a proposal to generate 150MW from a solar farm and store 20MW of it in battery systems in Mustang to meet seasonal and daily peaks. It got approval from Investment Board Nepal (IBN) and had already poured millions into the project when the Department of Mines instructed all developers in Mustang to halt their projects, citing the discovery of uranium ore. But insiders say the real reason was due to pressure from the Chinese government’s security concerns about a Western investor being involved so close to the border with Tibet.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025112303118_5946a5f1ba63f34c88f900c6d12b37d0101effb76e8a7a5397cd6451c16cd5b2.jpg" data-media-id="editor_1" data-image-id="2025112303118_5946a5f1ba63f34c88f900c6d12b37d0101effb76e8a7a5397cd6451c16cd5b2" data-rendition-name="original" width="800" height="450" loading="lazy" alt="Here comes the sun NT"> <figcaption>Photo: GHAM POWER</figcaption> </figure>  The same thing happened, but in reverse, when the Chinese company Risen Energy was interested in investing $190 million on a grid-connected 125MW photovoltaic generation system in Banke and Kapilvastu districts near the Indian border. Risen’s subsidiary, Risen Energy Singapore JV, was negotiating with IBN to commit $190 million in the project which would also store 20MW of daytime generation for morning and evening peak demand. But the agreement was not signed because the Indian authorities were concerned about Chinese involvement so close to their border. India has also refused to buy electricity from any hydropower plant in Nepal that has Chinese or other foreign investment or contractors. Indian state-owned companies are currently building or planning hydropower plants in Nepal to generate nearly 3,000MW, mostly for export.&nbsp; But not every Chinese-backed project has been blocked. In 2024, China handed over two solar-powered livelihood projects to a local community in Lalitpur — a community solar bathhouse and a rooftop photovoltaic power system. Funded by the Yunnan People’s Association for Friendship with Foreign Countries, the projects aim to improve living conditions. The initiative forms part of the Chinese Embassy’s ‘Happy Community’ program (幸福社区, Xìngfú Shèqū) under the China–South Asia Poverty Reduction and Development Cooperation Center.&nbsp; Says Gurung: “Hydropower is a geopolitical mess, but it has well and truly started in solar power too. It now all comes down to how we handle it, and we need deft diplomacy to make sure our projects are not indefinitely delayed as has happened in the past.”&nbsp; LOW-HANGING FRUIT Despite domestic restrictions and geopolitics, there are still small-scale opportunities for solar energy entrepreneurs to cash in, such as net metering. Most industries in Nepal have enough rooftop space to generate 500KW to 1MW of solar energy. Combined, they would generate a substantial amount of energy to feed into the grid. Factories, supermarkets and chain stores are often bankable and trusted by financial institutions from which they could easily get credit.&nbsp; China could also take advantage of Nepal’s high solar power potential. Given that the United States has only imposed a 10% tariff on Nepal, China could set up PV manufacturing plants in Nepal.&nbsp; However, this requires government-to-government which could run into trouble, again because of geopolitics. The same applies for the Carbon Border Adjustment Mechanism which is a carbon tariff on carbon intensive products, such as steel, cement and some electricity, imported to the European Union.&nbsp; Chinese products have suffered under this mechanism but Chinese products made in Nepal can be competitive in the European market given lower carbon tax for Nepal. Clean energy has long been an area where Nepal hopes to attract Chinese investment — not only in hydropower, but also in solar and wind energy.&nbsp; With contributions from Qian Sun, Global Voices.&nbsp;

Nepal, here comes the sun

Youth protestors who sustained injuries at the hands of state security forces during the September protest staged a sit-in at Maitighar Mandala on Friday, protesting what they have called the interim government’s inadequate efforts to address the demands of the GenZ movements. The demonstrators also sought to bar the UML from gathering at Maitighar, where party chair K P Oli was expected to announce its Youth Volunteer Force on Friday. The organisers consequently relocated the event. Friday’s demonstration at Maitighar comes as UML and GenZ representatives agreed to sit down for talks in Simara, where a curfew was imposed this week after youth protestors and party cadres clashed near the airport as demonstrators sought to stop UML leaders from flying in for a political event to Simara from Kathmandu.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131148_c0b3bfb861f73bee456efbd12f523af55ce3c258742c39e1dea7dbf768774ea5.png" data-media-id="editor_0" data-image-id="20251121131148_c0b3bfb861f73bee456efbd12f523af55ce3c258742c39e1dea7dbf768774ea5" data-rendition-name="original" width="2160" height="1440" loading="lazy" alt="GenZ Maitighar"> <figcaption>Youth protestors who sustained injuries at the hands of state security forces during the September protest staged a sit-in at Maitighar Mandala on Friday. Photos: SUBASH SHRESTHA</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131152_85f3606728d137b334d782ac1b5d1ed6383544493f96ebcc0398fcd9f0c5add7.png" data-media-id="editor_1" data-image-id="20251121131152_85f3606728d137b334d782ac1b5d1ed6383544493f96ebcc0398fcd9f0c5add7" data-rendition-name="original" width="2160" height="1439" loading="lazy" alt="GenZ Maitighar"> </figure>  &nbsp;Nepal’s interim government is increasingly cautious about the nation’s sensitive security situation in the lead-up to the 5 March election, as evidenced by pro-monarchy businessman Durga Prasai’s midnight arrest earlier this week over his inflammatory remarks as he called for protests this month. On Thursday, the Supreme Court ordered the government to present Prasai before the court within 24 hours.&nbsp; As it stands, the UML’s inauguration of a youth collective amidst its disregard for the demands of Nepalis for party reforms and a change in leadership highlights party chair and former PM K P Oli’s continued lack of remorse for the excesses of 8 September.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131144_aaa296e2e812ef5f6473064bc4b679bf605e14e06ac0ec9be1d6d047b56f96f9.png" data-media-id="editor_2" data-image-id="20251121131144_aaa296e2e812ef5f6473064bc4b679bf605e14e06ac0ec9be1d6d047b56f96f9" data-rendition-name="original" width="2560" height="1707" loading="lazy" alt="UML Youth Volunteer Force NT"> <figcaption>The UML launched its Youth Volunteer Force on Friday. Photos: SUMAN NEPALI</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251121131148_bfa8df3fc382195b4cdb9c4804cd67e169d2d9c0b8d218e61bbef0c4c9dbdaad.png" data-media-id="editor_3" data-image-id="20251121131148_bfa8df3fc382195b4cdb9c4804cd67e169d2d9c0b8d218e61bbef0c4c9dbdaad" data-rendition-name="original" width="2560" height="1706" loading="lazy" alt="UML Youth Volunteer Force"> </figure>  Families of those killed and injured on 8 September have demanded that the ousted PM and home minister be held accountable for state brutality.&nbsp; This week, Human Rights Watch published a <a href="https://www.hrw.org/news/2025/11/19/nepal-unlawful-use-of-force-during-gen-z-protest" target="_blank">comprehensive report</a> concluding that security forces fired indiscriminately on youth-led protestors on 8 September.&nbsp; The human rights watchdog urged the Sushila Karki-led interim government to investigate the excessive use of force as well as arson, vandalism and mob attacks on individuals on 9 September. The government has created a judicial commission to inquire into the deaths of 76 people over two days of protests.&nbsp; “The recent violence in Nepal included serious human rights violations, and those responsible should be held accountable, whether they are security forces or political actors,” said Meenakshi Ganguly, deputy Asia director at Human Rights Watch.&nbsp; She added: “The government should ensure that the investigations are independent, time-bound, and transparent, and that no one found responsible for breaking the law is unfairly protected from proper prosecution.” HRW’s investigation was based on testimony from 52 witnesses, victims, journalists, healthcare workers, politicians, and sources close to security forces. Researchers also verified photos and video footage shared on social media and with researchers; and visited the scenes of protests, properties subjected to arson and vandalism, and hospitals.&nbsp; A police officer said that officers opened fire with lethal force five minutes after the District Administration Office declared an emergency curfew around Parliament. Witness accounts and analysed footage did not show grave and imminent danger to life that would justify the intentional use of lethal force, stated the human rights watchdog in the report.&nbsp; The protestors and witnesses identified security forces who fired live ammunition at the protestors by their uniforms as members of the Armed Police Force (APF) and Nepal Police’s Special Task Force (STF). &nbsp; “They literally aimed at us and started shooting,” said one witness who sheltered behind a barricade as police continued shooting.&nbsp; A retired senior police official said police had failed to follow procedures for dispersing protests and using lethal force.&nbsp; Pathologists at a Kathmandu morgue told HRW that they determined 35 cases of death caused by “high velocity gunshot wounds” to the head, neck, chest, or abdomen.&nbsp; The witness recounted being taken into custody along with 33 other protestors by STF officers in riot gear, and said that police police personnel beat him with batons. Detainees were threatened and their IDs destroyed. Several witnesses said that the mob attacks on businesses, politicians, media companies, and educational institutions were very targeted, noting the absence of security personnel on 9 September as arson and violence raged across the capital.&nbsp; Some suggested that the violence may have been instigated by infiltrators associated with various political movements.&nbsp; On Discord, the platform where a significant number of demonstrators organised, participants noted that while there were calls for peaceful movement in the days leading up to the protest, some on the platform advocated for violence.&nbsp; Human Rights Watch has said that any credible allegations of criminal acts contributing to the violence must be investigated.&nbsp; Said Ganguly: “The authorities should recognise that widespread impunity for human rights violations in the past helped enable the violence that occurred this time in Nepal. It is crucial to reverse the decades-long tendency by successive governments in Nepal to bury investigations and stall prosecutions, and to bring about accountability and security sector reform.”

Security forces targeted protestors disproportionately: HRW

&nbsp;Nepal has finally become famous the world over for something else besides Mt Everest — the GenZ Movement. The 8 September protests in Kathmandu may have been triggered by what happened in Jakarta a week previously, but it inspired street uprisings all over the world. This week, Mexico’s GenZ are clashing with riot police. Last month, the president of Madagascar fled to Dubai. <a href="https://nepalitimes.com/here-now/nepal-genzs-inspired-filipinos" target="_blank">Philippines</a>, Morocco, Peru, Timor Leste all have seen similar anti-government protests against corruption, nepotism and poor governance. A Himalayan republic, a Latin American federation, a Southeast Asian archipelago, or a North African kingdom may have little in common, their histories, religions, languages, and political systems are worlds apart. But <a href="https://www.nytimes.com/2025/10/19/world/gen-z-revolutions-protests-louvre-heist-gaza.html" target="_blank">the common thread</a> running through these demonstrations were the simulacra and symbols spread on social media platforms.&nbsp; The young crowds marching through the streets of these countries were holding up the same icons. They painted the same images on cardboard, waved the same flags, stitched the same badges on their backpacks. They chanted &nbsp;the same references from the same corners of the internet.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251122031128_2ff7cf4ce7a9590359ed18753f4977648a6db83e95dd62d602a3f81e9eec42c4.jpg" data-media-id="editor_2" data-image-id="20251122031128_2ff7cf4ce7a9590359ed18753f4977648a6db83e95dd62d602a3f81e9eec42c4" data-rendition-name="original" width="1250" height="1047" loading="lazy" alt="Meme movements"> <figcaption> One Piece reference meme on Instagram, 115K likes(Photo: Shristi Karki)</figcaption> </figure>  To anyone who did not grow up online, this looks random. To anyone who did, it feels like the most obvious thing in the world. A new kind of global identity has formed — one that cuts across nationalities and cultures. In Nepal older relatives mock the ‘जेन्जी’. My neighbour asked me if ‘GenZ’ was a new political party.&nbsp; Around the world, when youth-led protests appear, reporters and politicians ask the same question: ‘Who is the leader?’ The answer is the same: there is no leader.&nbsp; Some names come up more prominently, as people did during <a href="https://nepalitimes.com/here-now/nepal-s-historic-youth-dissensus?fbclid=IwY2xjawNPQnZleHRuA2FlbQIxMQABHk5Nazeqz3K9aNddXa-dQfCbwtId0nLclQwHzIYhTfg8tzGWXZMBJ5pjm5Qx_aem_a5JoyT1FRqzCVtnnPM7zUw" target="_blank">the Nepali protests</a>: Sudan Gurung. Miraj Dhungana, Rakshya Bam and other organisers who appeared in livestreams and interviews. But look closely and the leader is hiding in plain sight. The leader is not a person. The leader is the internet meme.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251122031128_b2319eb8d7abec7ed5e12baf1a53e0a27cfd7a49ee15c058c47cdf2603a7fa8a.png" data-media-id="editor_4" data-image-id="20251122031128_b2319eb8d7abec7ed5e12baf1a53e0a27cfd7a49ee15c058c47cdf2603a7fa8a" data-rendition-name="original" width="662" height="1038" loading="lazy" alt="Meme movements"> <figcaption>Aurafarming, 233K likes(Photo: Shristi Karki)</figcaption> </figure>  <a href="https://nepalitimes.com/here-now/nepal-s-meme-revolution" target="_blank">Memes today</a> are doing the quiet organising work that pamphlets and party cells once did. They offer identity, coordinate action, level power differences, and they do it without any central command. This is not because memes cause revolts. It is because memes are the connective tissue of a generation that grew up on the same visual language, the same jokes, the same references, and the same sense of shared digital childhood. Older generations did not share cultural symbols in the same way. Whether they read a certain comic book or watched the same cartoon depended on class, religion, caste, the country, or neighbourhood they grew up in. These divisions created stratified cultural memories.&nbsp; Today, an entire global cohort has been raised on the same visual media. The same YouTube creators. The same TikTok jokes. The same anime storylines. It is truly what McLuhan predicted the Global Village would be.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251122031128_136d009a48d8f8daee82ada1b220e0b0c8ec482b52dcd44e0942e2185a70421b.png" data-media-id="editor_6" data-image-id="20251122031128_136d009a48d8f8daee82ada1b220e0b0c8ec482b52dcd44e0942e2185a70421b" data-rendition-name="original" width="738" height="1012" loading="lazy" alt="Meme movements"> <figcaption>Masked K P Oli, 63K likes(Photo: Shristi Karki)</figcaption> </figure>  This has also created the perfect environment for <a href="https://observer.co.uk/news/international/article/revolution-20-frances-political-future-could-be-won-or-lost-by-bots-and-memes" target="_blank">memes to become political tools</a>. They are instantly recognisable, emotionally charged, and open for remixing. They allow young people to signal their values without stating them. They compress identity, anger, humour, and belonging into something that the rest of the world dismisses as unserious. The perfect example of a GenZ meme is the famous skull and crossbones in protest flags from Kathmandu to Manila to Mexico City. The Strawhat Pirates from the <a href="https://www.france24.com/en/asia-pacific/20251006-one-piece-manga-revolt-morocco-indonesia-nepal-madagascar" target="_blank">anime One Piece</a>, is a show with over 1,000 episodes and a global fanbase that spans continents. One Piece follows Luffy, a justice driven pirate who travels across a world ruled by corrupt older elites who hoard power and suppress dissent.&nbsp; It is not hard to see why that story resonates with young people who feel locked out of political systems built by generations before them. I even printed stacks of my own flyer that explained memetic warfare using Minecraft visuals and handed them out in the crowd. Each one linked to a Telegram group with the Strawhat Pirates logo called MemePack HQ.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251122031144_1b12e920be6e312e1dc8768d318c1d1332e32694293b48984089867e7e525a27.jpg" data-media-id="editor_9" data-image-id="20251122031144_1b12e920be6e312e1dc8768d318c1d1332e32694293b48984089867e7e525a27" data-rendition-name="original" width="1100" height="1000" loading="lazy" alt="Meme Movements"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251122031128_08b720667a9ff36537e58992c8a8030b090900847de5eecd479bbb3fc727349d.png" data-media-id="editor_10" data-image-id="20251122031128_08b720667a9ff36537e58992c8a8030b090900847de5eecd479bbb3fc727349d" data-rendition-name="original" width="696" height="1004" loading="lazy" alt="Meme movements"> <figcaption>Indonesia-Nepal comparison, 17.7K likes(Photo: Shristi Karki)</figcaption> </figure>  CULTURE EXPOSURE The Strawhat logo is not the only symbol making people protest. That would be like saying video games cause real world violence. Instead, the logo works like a modern version of mythology. It packs meaning for those who understand it. It represents loyalty, rebellion, chosen family, and resistance against unfair structures. It works as a rallying flag because it is already a shared story. And unlike older myths, it is accessible regardless of religion, caste, language, or national identity. Across Nepal, the Strawhat symbol has shown up on posters, badges, and protest outfits. But it is only one piece of a larger ecosystem of youth symbols. From Nepali meme pages remixing political speeches into ironic audios, to posts that place politicians into familiar pop culture formats, to clips that exaggerate the absurdity of daily life under slow moving governance, these are not just jokes. These are narrative units. Each post is a tiny story with its own punchline and its own political edge. Each TikTok video or meme functions like a religious shlok, a short piece of narrative that carries layers of meaning depending on who consumes it. Someone who has spent years studying a religion, in this case, inside GenZ online culture will recognise the symbols instantly. Someone outside this world will only see noise. This creates a literacy divide that is not about formal education but cultural exposure.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251122031128_2d09f075663678fe92d4e4dcc631ee6ad1aa8a99996f4c4a3649e4bf4d85132f.png" data-media-id="editor_11" data-image-id="20251122031128_2d09f075663678fe92d4e4dcc631ee6ad1aa8a99996f4c4a3649e4bf4d85132f" data-rendition-name="original" width="810" height="1208" loading="lazy" alt="Meme movements"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251122031128_d591c4dc857864cc833ffc6baece3f4c2798bbaf70b557f965463fc8f802900e.png" data-media-id="editor_12" data-image-id="20251122031128_d591c4dc857864cc833ffc6baece3f4c2798bbaf70b557f965463fc8f802900e" data-rendition-name="original" width="568" height="1124" loading="lazy" alt="Meme movements"> </figure>  Protesting youth spent countless hours scrolling, interpreting, remixing, and responding to content. They built a shared symbolic universe across borders without planning to. This is why their political movements feel leaderless. They are not following individuals. They are following stories that define what justice looks like. Stories that define who the villain is. Stories that define how to respond when power is abused. In Nepal, memes about broken roads, delayed passports, political inheritance networks, and bureaucratic absurdity circulated for months before they became slogans or chants. By the time people took to the streets, the narrative groundwork had already been completed by thousands of posts liked and shared in private. The protests did not emerge from nowhere. They emerge from years of digital storytelling. Which is why the government’s ban on 26 digital platforms on 5 September became such a rallying force. The platforms that distribute these memes are not neutral, they are actually designed to maximise engagement because engagement translates to ad revenue. Right now, there is an engineer in Silicon Valley getting paid an enormous salary to find the perfect colour shade for a singular pixel on your screen so that you linger for fractions of a second longer.&nbsp; Algorithms reward content that trigger emotion. Sometimes the emotion is delight. Sometimes it is envy. Often it is anger. When rage becomes a business model, movements built inside these systems can feel powerful but unstable. The platforms democratise attention but centralise emotion. They allow anyone to broadcast, yet they shape the emotional tone of what becomes viral.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251122031128_f22baab05910305ea435045824b25b796d5630715e2e17c3f3c0991e8371843c.png" data-media-id="editor_13" data-image-id="20251122031128_f22baab05910305ea435045824b25b796d5630715e2e17c3f3c0991e8371843c" data-rendition-name="original" width="974" height="1156" loading="lazy" alt="Meme movements"> </figure>  GenZ sits inside this tension. Empowered by the ability to speak without gatekeepers. Trapped inside systems that monetise their attention and amplify their frustration. This is why these leaderless online movements feel both organic and volatile. The algorithm filters which stories rise and which fade. It becomes an unintentional political actor. Not elected. Not accountable. Yet influencing millions. When the state is no longer the primary distributor of information, and when the algorithm becomes the new filter of reality, the public is left with a new responsibility. We have to learn to read memes the way past generations learned to read pamphlets or manifestos. A 15 second video can carry more political weight than a two hour speech. A symbol on cardboard might represent a decade of digital storytelling. Older generations often dismiss these images as childish. They are actually literacy markers of a new political class, one that does not wait for leaders. A political class fluent in remixing power, raised on global stories that feel more honest than the institutions they inherited. The youth did not create these platforms. They inherited them. But through memes they found a new language, one that lets them organise without permission. One that lets them build solidarity without needing meetings or manifestos. One that allows them to resist systems that feel too old to reform. It is time to take that seriously. Nobel Rimal is a researcher of digital culture and political communication who studied and participated in the meme driven mobilisations during the Nepal protests&nbsp;

Meme movements

Double-taxation, profit repatriation and capital gains tax have always been a headache for foreign investors in dealing with rent-seeking that Nepal is infamous for.
When Dolma Impact Fund, the only international venture capital company in the country, applied last year for exemption from capital gains tax citing Nepal’s Double Taxation Avoidance Agreement (DTAA) with Mauritius, bureaucrats at the Finance Ministry gave it the runaround.&nbsp;
But the interim government’s Finance Minister Rameshore Khanal, himself a respected former bureaucrat, is someone who knows that international treaties take precedence over national law.&nbsp;
On 30 October he gave Dolma a strategic capital gains tax break, convinced that Nepal needed to restore investor confidence especially after videos of the arson, vandalism and looting of the Hilton and Hyatt hotels and businesses on 9 September went all over the world.&nbsp;
Dolma’s stakeholders include other investment funds in the UK, US, Japan, Netherlands, Finland, Austria, Sweden as well as the World Bank. Nepal needs investment for future large infrastructure projects, and to tap those funds it has to &nbsp;streamline its bureaucracy, increase transparency and adhere to international obligations.
The argument is that making it easier for Foreign Direct Investment (FDI) is a much more efficient way to spur the economy and create jobs than the government raising revenue mainly through taxation, since the chances of that money being leaked through corruption or wastage in Nepal is high.&nbsp;
After news of Finance Minister Khanal’s decision on 3 October exploded in the media, Prime Minister Sushila Karki inquired about it. Chief Secretary of the GoN Eaknarayan Aryal clarified that the decision was not in the minutes of the Cabinet.
TAXING TWICE
Critics like economist Pushkar Bajracharya argue that it is important for Nepal to have a consistent taxation policy for FDI, and apply it uniformly so it does not deter investors. The Dolma decision could encourage other offshore investors to demand similar treatment, hurting Nepal’s tax base.
“Besides, the evidence just isn’t strong that tax cuts lead to higher investment, or more jobs,” Bajracharya adds.
Nepal has double-taxation avoidance treaties with 11 countries, and there are reports of moves to end the DTAA with Mauritius signed in 1999. But just like with the Ncell’s capital gains row and the controversy over the US-funded Millennium Challenge Corporation (MCC) there has also been nationalist flag-waving in Nepal.&nbsp;
“We were raising a fund that could have brought $1 billion in for energy, and we had to stop it due to the reputational damage to Nepal by not upholding an international treaty,” Tim Gocher, CEO of Dolma, told Nepali Times on the phone from London.
Dolma claims that Nepal’s DTAA with Mauritius means profit arising from sale of shares should be taxed only in the resident state and not in Nepal, and also cited the Treaty Act 1990 which states that treaties signed by Nepal supersede domestic law in case they contradict each other.
Gocher said it makes sense for his fund to be based in Mauritius: “When you have investors from all over the world, you have to choose a domicile, and Mauritius is probably the most popular for development finance institutions due to strong governance, anti-money laundering laws and treaties with developing countries like Nepal.”&nbsp;
Nepali officials, however, see Dolma as a conduit company sourcing funds from outside Mauritius or Nepal and label it as possible ‘treaty shopping’. A similar case involving the sale of Ncell ownership went to the Supreme Court and all the way to the International Tribunal at The Hague, and both ruled against exemption to DTAA.
Officials argue that approving an exemption for Dolma would contradict that precedent. The Attorney General’s office cited Section 73 of the Income Tax Act of 2002 which states that to avoid double taxation, more than half of the company has to be owned by individuals residents of both Nepal and a foreign country.
Bureaucrats also seem to be wary about being hauled over the coals at the Commission for the Investigation of the Abuse of Authority (CIAA) if they agree to Dolma’s demands, even though there is a legal argument that the Nepal treat act stipulates that in case of disagreement international obligations take precedence over domestic laws..&nbsp;
“It was when the new government decided to uphold the treaty that the whole hoo-hah started,” said Gocher. “It is crystal clear, and the way international treaties are dealt with all over the world.”
Chief Secretary Acharya, who is retiring next week, seems to want to avoid being haunted by any whiff of controversy before he leaves, but also faces intense lobbying by the international community for Dolma’s exemption.&nbsp;
Dolma currently invests in companies such as Chirayu National Hospital, CloudFactory Holdings Limited, Foodmandu, FuseMachines, Rhododendron Biotech, Setikhola Hydropower, and Solar Farm Nepal.&nbsp;
Dolma has asked to be exempt from being taxed twice: in Nepal, where it invests, and in Mauritius, where it is based, and points to a law that says international treaties override domestic law in the case of a contradiction. Government officials point to the Ncell precedent saying it will be illegal. But the government is not giving in, due to the Ncell precedent and to prevent others in future asking for similar exemptions.&nbsp;
<a href="https://www.youtube.com/watch?v=uNdMuD_4yGw&amp;t=5s" target="_blank">Watch interview</a> on Nepali Times Studio with Tim Gocher.