<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111152/63721dfc9c7e80680e0bd51ajpeg.jpg" alt="" width="1000" height="667"/><figcaption>ALL PHOTOS: AMIT MACHAMASI</figcaption></figure>The historic town of <a href="https://archive.nepalitimes.com/blogs/thebrief/2015/05/03/harisiddhi-earthquake/" target="_blank" rel="noopener noreferrer">Harisiddhi</a> is just 2km from the Ring Road, and still bears the scars of the earthquake from seven years ago. There are ruins of abandoned homes, and concrete high rises have come up where older houses collapsed.As many as 850 houses were destroyed or damaged in this town, leaving 24 residents and two visitors dead, 150 more were injured. As Harisiddhi rebuilds, it has also been transformed from a historic city with heritage buildings that defined the core area, into one that is no different from the rest of Kathmandu.The town is on the highway to Godavari, now a jumble of multi storey<a href="https://archive.nepalitimes.com/article/editorial/preparing-for-future-shocks,3472" target="_blank" rel="noopener noreferrer"> cement structures</a> over narrow alleyways. Here and there, we catch a glimpse of some old houses with tile roofs, empty lots where houses once stood, rubble overgrown with vegetation that still has not been cleared after seven years.Many families who lost their homes relocated to other parts of the Valley, while others still wait for assistance the government promised for rebuilding.Harisiddhi is a microcosm of the Valley’s many historic Newa towns — how the movers and shakers were the first to get compensation to rebuild, while <a href="https://archive.nepalitimes.com/article/nation/Women-still-waiting-%20to-rebuild-homes-and-lives,3118" target="_blank" rel="noopener noreferrer">women-led households</a>, Dalits and some ethnic groups with limited ownership or inadequate documents have not benefited from the recovery (see below).“When they decided on compensation, they forgot to consider the traditional makeup of Harisiddhi. Even today many residents here buy and sell land in the old way. Not everyone has a land title, even if they have been living here for generations,” explains Ganesh Kumar Maharjan, Chair of Ward 29. “This has delayed aid for many people.”<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111152/63721dff9c7e80680e0bd51bjpeg.jpg" alt="" width="412" height="198"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111152/63721dff9c7e80680e0bd51cjpeg.jpg" alt="" width="1000" height="667">Read Also:<a href="https://www.nepalitimes.com/opinion/rebuilding-resilience-7-years-later/" target="_blank" rel="noopener noreferrer">Rebuilding</a> <a href="https://www.nepalitimes.com/opinion/rebuilding-resilience-7-years-later/" target="_blank" rel="noopener noreferrer">resilience</a><a href="https://www.nepalitimes.com/opinion/rebuilding-resilience-7-years-later/" target="_blank" rel="noopener noreferrer"> 7 years later</a>, Anil PokhrelInitially after the 2015 earthquake, the government committed to give Rs200,000 in three tranches to each family whose house was destroyed or damaged beyond repair. The amount was later increased to Rs300,000. The first installment of Rs50,000 was provided when the house owner signed an agreement with the National Reconstruction Authority (NRA), the second Rs150,000 on completion of plinth level construction, and the last after completion of the roof level.But to get the second and third tranches, a certification from the NRA engineers indicating that the house complied with seismic-resistant design and building code was mandatory. Land ownership papers were also needed, and many in Harisiddhi were deprived of their compensation despite years of scouring government offices.In Ward 29, 252 households qualified for the assistance, and only 86 had land ownership papers. Some 58 houses are still waiting for money. The story is similar in Ward 28 which is still getting enquiries from survivors.Land registration in Nepal began in 1965, but in many ancient settlements like Harisiddhi, the dense cluster of houses in a small area as well as unclear division of land among family members posed a problem in registration. The language barrier and other social factors meant that many still do not have land titles.“It is a shame that houses that were built on once-public land have got their land titles but not the original inhabitants who have been living here for generations,” says Bharat Maharjan, a researcher on Newa settlements.To be sure, the government did facilitate the registration of land for survivors after the earthquake, but the latter say the window to register was too narrow and the process unclear.“They should be able to start the process at any time. But when they define the time, it becomes difficult as not everyone may have money for the process. When people have money, the window to register may not be open,” says Rajesh Maharjan, Chair of Ward 28.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111152/63721e029c7e80680e0bd51djpeg.jpg" alt="" width="1000" height="667"><figcaption> </figcaption></figure><h5>Sita Kapali</h5>When the earthquake struck on the day of 25 April 2015, little did Sita Kapali think she would be experiencing aftershocks even after seven years.Sita, now 65, lives with her daughter Geeta and her grandson in a two-storey house outside the core area of Harisiddhi.The family was lucky that their old family house did not fully collapse and no one was killed. But the family could not afford to tear down the damaged home and build a new one. They had hoped the Rs300,000 assistance from the government would at least help in repairs.Two years after the earthquake, the family got the ‘red book’ and the first tranche of the housing assistance after their home was assessed. But the money was not enough to demolish the house, let alone rebuild. Moreover, the family did not have land ownership papers, which delayed the process further.“They said we did not qualify for the second tranche because we did not have land ownership papers. My brother made the rounds of government offices and finally got it made last year. But when the engineers came by again, they said we could not get the remaining money, they did not say why,” says Geeta.As per the clauses for housing assistance, the second tranche is released only after the reconstruction process has started and assessed by engineers. But this family simply has no finance to do that or get a loan from anywhere.Before the pandemic, Sita worked as a house help for families, but she has not been able to work since last year after her husband died, further straining the famaily’s finances.For now, the three continue to live in the old house mending the cracks with a slurry of mud and water. Her son and daughter-in-law have been living separately in a rented room since the earthquake because there is not enough room in the house for them. Her other son is working outside Kathmandu Valley.Says Sita: “It is ok for now but what will we do if there is another earthquake?”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111152/63721e049c7e80680e0bd51ejpeg.jpg" alt="" width="1000" height="667"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111152/63721e069c7e80680e0bd51fjpeg.jpg" alt="" width="1000" height="667"><figcaption> </figcaption></figure><h5>Babu Kaji Kapali and Hasina Kapali</h5>Babu Kaji Kapali, 70, has three brothers. In theory the four brothers had separated, but they lived in the same house. When the earthquake occurred, the three-storey house collapsed and the roof caved in.“When the government announced the assistance, we were hoping each family would get it but they said only one person from one house can get it,” says Babu Kaji. “But we were all living separately already.”He sold a plot of his land and took out loans to build a four-room house in his farmland. He hopes the ownership papers of this house and land will qualify him for the grant. “We have to live somewhere. It will help repay debts,” says Babu KajiThe land ownership of the old family house is with his elder brother who is Hasina Kapali’s father-in-law, but even they have not been able to get the money.When Hasina’s father-in-law fell sick, they needed to move him from the temporary shelter. The family pooled in whatever money they had, and took loans from the bank and community center to rebuild the house. But they have only received the first tranche of government assistance. She does not know why they have not gotten the money despite having the land ownership paper.“I have been to the government offices several times but I’ve lost hope now. Clearly they are not giving money to the poor, those with better economic conditions than ours got it already. Maybe because we are further away from the core Harisiddhi village they missed us,” says Hasina.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111152/63721e099c7e80680e0bd520jpeg.jpg" alt="" width="1000" height="667"><figcaption> </figcaption></figure><h5>Shrawan Kumar Maharjan</h5>Shrawan Kumar Maharjan has forgotten the number of times he has visited the ward office in the last seven years. In his latest visit last week, the 40-year-old craftsman returned empty handed yet again. He was there to see if the ward could help him claim the housing assistance.After their house collapsed in 2015, Shrawan and his family lived in the temporary shelter for years, waiting for the government assistance. Two years ago, he took out a loan and sold a plot of his land to rebuild the house.“This money is not enough to build a house in Kathmandu. And yet, I keep coming to the ward office to inquire about the government compensation because I would have at least paid off the interest on my loans,” says Shrawan.Like many here, the family did not have land ownership papers, so he filed for those at the Land Revenue Office. He still has not got the document.Says Shrawan, “We have lived here for generations, but we don’t have the papers. I don’t know why they cannot give us the money. If it is only about the land titles, then there are others without it who have already got theirs. The government has forgotten about us earthquake survivors.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111152/63721e0c9c7e80680e0bd521jpeg.jpg" alt="" width="1000" height="667"><figcaption> </figcaption></figure><h5>Dinesh Maharjan</h5>Dinesh Maharjan, 31, was in Dakshinkali with his family when the earthquake struck. Because the temple did not suffer any damage, he did not think the tremors were strong. But when he drove through the city towards Harisiddhi, he saw more and more damage. He knew then that his old mud house did not stand a chance.For the next three years, the family lived in temporary shelters moving from one place to another. “We did not have land titles or building permits, so they did not initially give us the money,” says Dinesh, repeating a familiar plight.The family decided to move to the core area and build a house there, but they did not have ownership papers for this land either. They took out loans and sold other property.“We managed to get the first tranche after proving we have been living here for generations. We had to bring four witnesses for that, it was a lot of hassle,” says Dinesh. The family received the first tranche in February 2020, and the rest of the amount only in July of last year.He has submitted his application for the land ownership papers in the Land Revenue Office but doesn’t know how far the process has gone. “We have the compensation now, but my paperwork for land title is still stuck at the Land Revenue Office,” he says. “If I don’t get the papers, we will have to go through the entire process again the next time there is an earthquake.”

Sahina Shrestha

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Falling through the cracks

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637208569c7e80680e0b54dfjpeg.jpg" alt="" width="1500" height="1000"/><figcaption>Land being plotted in KAthmandu's Sankhu for sale. Photos: AMIT MACHAMASI</figcaption></figure><ul><li>A two-bedroom 185 sq m flat in an apartment block in Hatiban is on sale for Rs8.5 million. An average Nepali civil servant who earns Rs36,000 a month would need 20 years worth of salary to be able to afford it.</li> <li>Just to buy a plot of land to build a small house in the same locality of Lalitpur costs Rs16 million, for which the civil servant would have to pay a lump sum worth 37 years of salary earnings.</li> <li>A small plot of land by the highway bought 20 years ago in Bhaktapur is worth an astounding 7,000% more today. Even considering the devaluation of the Nepali rupee, that is sky-high appreciation.</li> <li>Another plot 4km off the Ring Road in Kathmandu that cost Rs10 million five years ago is now worth Rs50 million.</li> <li>A property in Kathmandu’s prime Darbar Marg area recent sold for Rs90 million ($750,000) per 33 sq m. This is one of the highest real estate values in the world.</li> <li>A house with land that was bought for Rs20 million in Tinkune six years ago sold for Rs80 million recently.</li></ul>A Nepal Rastra Bank report this year shows that <a href="https://www.nepalitimes.com/opinion/home-is-where-the-heart-is/" target="_blank" rel="noopener noreferrer">property value in Kathmandu Valley</a> is increasing at 27.7% a year, doubling real estate value every 3.5 years. This is despite average salaries in Nepal increasing by only 7.45% per year.Property value appreciation is even higher in other urban areas of Nepal, especially in Madhes Province and the Tarai towns of Far West Province. The price of real estate is doubling every two to three years here because of the soaring demand for land due to migration to the cities, plains and valleys from the mountain districts.There was a prediction that <a href="https://www.nepalitimes.com/here-now/kathmandu-creeps-up-surrounding-mountains/" target="_blank" rel="noopener noreferrer">Kathmandu’s property values</a> would decline after the 2015 earthquake, but the opposite has happened. Despite the government valuation for the property being much lower, land transactions are taking place arbitrarily, with no scientific basis for real value, or linked to productivity.Economists say there are many factors driving this real estate bubble in Nepal. Kathmandu Valley’s urbanisation pressure increased after free market forces were unleashed following the changes in the early 1990s, and people from across the country streamed into Kathmandu for education and jobs. The 1996-2006 conflict exacerbated this trend as people fled the fighting in the hinterland.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637208599c7e80680e0b54e0jpeg.jpg" alt="" width="1500" height="1001"><figcaption> </figcaption></figure>This process further accelerated further after 2006, and surveys have shown that one-third of all Nepalis have now moved away from the place where they were born. <a href="https://www.nepalitimes.com/banner/nepalis-moving-from-mountains-to-plains/" target="_blank" rel="noopener noreferrer">Domestic migration</a> is  highest in Bagmati Province where Kathmandu Valley is situated, and where 47.3% of the residents are recent arrivals from outside. The percentage for Gandaki where Pokhara is located is also a high 40.2%, while Province 1 has 38.9% of its population from outside – mainly in the densely-populated Jhapa plains.<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://archive.nepalitimes.com/article/nation/paddy-planting-replaced-by-real-estate,3833" target="_blank" rel="noopener noreferrer">Fuelled by remittance income</a>, this influx led directly to a steep rise in land prices. Adding to this is the unregulated loan disbursement by the banking sector which fuelled land transactions – leading directly to property speculation. This in turn tempted people with cash to convert it into real estate investment – leading to the indiscriminate ‘plotting’ of prime agricultural land in Kathmandu, Pokhara, Chitwan and other urban centres.Real estate transactions do not need to be routed through companies, and since anyone can be involved, this has opened up opportunities for buying and selling by bankers, politicians contractors and others who have inside information on future infrastructure projects. Even the Nepal Army is involved in real estate business, turning its property in Kirtipur into a housing colony.<a style="font-size: 15px; letter-spacing: 0.01em;" href="http://archive.nepalitimes.com/news.php?id=15834#.Yf3eCy2B3ow" target="_blank" rel="noopener noreferrer">Banks are in on</a> this unregulated real estate speculation. They have distributed loans worth Rs516 billion, which is a full 11% of their entire portfolios. More than 16% of overdraft facilities also mostly go for real estate transactions. Two-thirds of all loans have property as collateral. Even loans given for agriculture are diverted to property market. In the past three years, there has been a 60% increase in loans for agriculture projects, but neither farm production not productivity have not gone up in that period.In fact, one of the reasons for the liquidity crisis in the banking sector today is due to over-lending for land loans. These loans are not invested in productive sectors, they do not create jobs, or contribute to the economy. They just recycle cash, creating nothing but capital gain for those for whom gambling in real estate is a fulltime occupation.This trend is driven by unbridled greed which the government and the regulators are unable or unwilling to control because they themselves benefit from it. The end result is that it has distorted Nepal’s economy and created a vicious cycle, with the danger that the artificial bubble could burst at any time.Former finance secretary Rameshore Khanal says that most governments try to regulate the property market to make housing affordable to citizens, as well as to manage urbanisation.Read also: <a href="https://www.nepalitimes.com/banner/nepal-struggles-to-balance-nature-and-industry/" target="_blank" rel="noopener noreferrer">Nepal struggles to balance nature and industries</a>, Ramesh Kumar“As long as banks are careful about giving out loans for land, property prices can be kept in check,” Khanal says. “In fact Nepal Rastra Bank should immediately stop allowing borrowers to put land as collateral to buy more land, and for home owners to get a loan to amass more property – because it is an abuse of the savings that citizens deposit in banks.”However, the central bank is unlikely to agree to such measures because its own officials have too much personal interest tied up with real estate. A private bank official who sanctioned a loan for a housing colony in Bhaisepati recently bought a lucrative 1 ropani plot for himself. Without any extra effort, and with low capital gains tax, it made sense for him to make the personal investment even though there was a clear conflict of interest.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/6372085c9c7e80680e0b54e1jpeg.jpg" alt="" width="1500" height="1125"><figcaption> </figcaption></figure>Nepal Rastra Bank governor Maha Prasad Adhikari himself has invested in property in Lalipur, Jhapa, Heatuda and elsewhere. Ministers, ex-ministers, politicians, senior civil servants and Supreme Court justices own property that exceed the land ownership ceiling.The unrealistic price of land has impacted on the government’s infrastructure development plans and private sector investment in hydropower, and other projects. It is now established practice for land owners, speculators, middle men and the land mafia to milk the government in infrastructure projects.Read also: <a href="https://www.nepalitimes.com/banner/hiding-their-head-in-the-sand/" target="_blank" rel="noopener noreferrer">Hiding their head in the sand</a>, Ramu SapkotaThe government spends Rs 20 billion or more every year just in acquiring land for infrastructure projects. Bhairawa International Airport cost only Rs7 billion to build, but the government had to pay out Rs23.58 billion just in acquiring land for the project. Even the 2.38 km Nagdhunga Tunnel project has had to pay as much as Rs4.2 million per ana (33 sq m) of land.Twenty years ago, during his second tenure as prime minister, Sher Bahadur Deuba got Parliament to announce a ground-breaking lowering of the threshold for land ownership, and also stipulated that land should be used for none other than the designated purpose. The law was never properly implemented, and to date the government does not even have a unified database of land ownership in the country.The real estate bubble is so lucrative that most companies that have gone bankrupt because of falling business have managed to stay afloat because of the increased value of the property they own. Nepal has been growing at an average of 4% a year for the past two decades, but this is not reflected in manufacturing or productivity.“Unless we stop this vicious cycle and prevent investment in real estate speculation that is supposed to go into the productive sector, the bubble in Nepal’s economy is going to burst sooner or later,” says economist Dilli Raj Khanal.Those with ancestral property in the city centre, and those specialising in buying and selling real estate have become overnight billionaires. This is feeding the market in luxury items, mainly SUVs. In the past four months of the last fiscal year alone, despite an economic downturn, Nepal imported Rs57 billion worth of vehicles and spare parts.Imports have now risen so sharply in the past two years at a time when exports and remittances have fallen, that Nepal’s hard currency reserves have declined to their lowest level in decades, and able to finance only 6 months worth of imports. This, in turn, has increased the income gap between the poorest and richest Nepalis.Although there are no figures to prove that the gap between the have’s and have not’s has grown in Nepal, it is clear that the astronomical profits that can be made from real estate transactions have made a limited number of Nepalis extremely wealthy.One of the reasons for the real estate bubble is that the tax on land transactions in Nepal is so low. In fact, if a land is sold within five years of being bought, the seller only has to pay 5% of the capital gain tax to the government. If the land is sold after more than five years, the tax is only 2.5%. Compare this to income tax up to 36% that individuals pay in Nepal, and there is a transaction fee of 25% in most businesses.Read also: <a href="https://www.nepalitimes.com/here-now/ground-reality-of-landlessness-in-nepal/" target="_blank" rel="noopener noreferrer">Ground reality of landlessness in Nepal</a>, Rabi GiriThis is besides the tendency to bribe officials to undervalue the rate at which property is sold, so as to reduce the taxable amount. In fact staff at the land tax office as what the “unofficial” amount for property sales is, presuming that it is undervalued.“Raising the tax rate for real estate transactions will immediately discourage property speculators, reduce the number of transactions, and put a check on the runaway increase in land prices,” admits Gunakar Bhatta of Nepal Rastra Bank.The reason property transactions have not gone down despite sky-rocketing real estate prices is that Nepal’s economy is run mainly through informal channels. Many unscrupulous businesses are cashing in on a weak state to get rich quick, and investing their ill-gotten wealth by laundering it through real estate.In fact the reason for the abnormal rise in land prices is the lack of state regulation, corruption and self-interest at high levels of government, says economic professor Achyut Wagle. “Real estate has become the ideal venue to park wealth earned through corruption, so that even people who do not really need land are investing in it,” he adds. “And since one does not need to work anymore to get rich quick, the real estate speculation has also killed entrepreneurship.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637208609c7e80680e0b54e2jpeg.jpg" alt="" width="1500" height="1001"><figcaption> </figcaption></figure>One recent example of just how high up the rot has gone is the Lalita Niwas scam at Baluwatar where government property was transferred to private ownership with collusion between the real estate mafia and senior politicians. Another is the example of real estate tycoon Ikshya Tamang who allegedly cheated hundreds of investors but was never prosecuted by the UML government of which he was a nominated MP.In his previous tenure as prime minister Sher Bahadur Deuba allowed Gopal Dahit to lift a ban on fragmentation of agriculture land for housing colonies. A lot of money is said to have changed hands to allow this law to be passed. When K P Oli was prime minister, his Land Management Minister Padma Kumari Aryal lifted the ban on turning agriculture land into housing colonies, if a local  government office certified that it was not used for farming.Read also: <a href="https://www.nepalitimes.com/here-now/owning-land-gives-former-slaves-self-respect/" target="_blank" rel="noopener noreferrer">Owning land gives former slaves self-respect</a>, Unnati ChaudharyThe Supreme Court ruled last year not to allow the fragmentation of land holdings for housing colonies, but in reality it never stopped. In fact just in the past year, there have been more than 500,000 new property ownership certificates distributed by dividing larger holdings. Corrupt officials are even demanding under the table payments to approve property sales where dividing up a property is legitimate.The standard operating procedure at the land tax office is that most of these transactions go through only after money exchanges hands under the table.What is the solution?Most economists agree that tightening the process through which banks finance land purchases can burst the bubble on real estate prices. For example, a house owner should not be given a loan to buy more than one property.Sujeev Shakya of the Nepal Economic Forum agrees that buying house or property other than the one a person is living in should be taxed heavily. He has another idea: slap an inheritance tax on property that is passed down from one generation to the next, as is the practice in other countries.The other measure would be a hefty increase in the currently nominal land transaction tax. “How can it be that a person who earns a living through hard work pays 36% income tax while profit from selling property is only 2.5%-5%?” asks chartered accountant Seshmani Dahal, adding that other measures like enforcing banking transactions for land sales should also be taken to ensure that the sale is not deliberately undervalued to lessen the tax amount.A lot of the unregulated buying and selling of land and speculation would also be curbed if proper urban planning is strictly enforced. Only after utilities and other facilities are installed should an area be opened for residence.The government should also be involved in building and establishing affordable housing for middle income families. The Constitution establishes the right of all citizens for decent housing, and it is up to the government to fulfill that pledge.

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Kathmandu’s unreal real estate prices

<figure><img width="1366" height="630" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410118/637205d89c7e80680e0b28dbjpeg.jpg" alt=""/><figcaption>Jaglal Dagaura Tharu tends to his nursery in Kailali district.</figcaption></figure>After living most of his life as a bonded labourer, Jaglal Dagaura Tharu is building a home on a plot of land that he can finally call his own. Having started a successful nursery, the former landless family is now financially independent.Jaglal, 57, was born into a life of indentured servitude with his parents who were <a href="https://www.nepalitimes.com/banner/nothing-to-lose-but-their-chains/" target="_blank" rel="noopener noreferrer">bonded labourers</a> at the house of a local zamindar landlord. This traditional system of modern-day slavery known as the kamaiya system was widespread in Nepal’s western plains until it was abolished twenty years ago.The young Jaglal grew up working all day long looking after the zamindar’s livestock at the edge of the forest. At age 12, he was ‘lent’ to a neighbour’s household to slave away for three years before returning to his original ‘owner’ Shyamlal Chaudhari.He got married, had a family of his own, but continued working for the landlord with four other brothers who were all also <a href="https://archive.nepalitimes.com/article/nation/Modern-day-domestic-slaves-domestic-workers,3785" target="_blank" rel="noopener noreferrer">bonded labourers</a>. With no income or property of their own, they had no way of freeing themselves from a life of slavery.But in 1979, when the Nepal Punarvas Company started distributing land to landless squatters, Jaglal’s father filled in an application. Three years later, the family received a 0.3 hectare plot in Kailali. It was a start.“We made a small hut but we did not have enough to eat so I remained a <a href="http://archive.nepalitimes.com/news.php?id=19418#.YfeHIy2B3-Y" target="_blank" rel="noopener noreferrer">kamaiya</a> for a few more years,” says Jaglal but he had already started looking at how to put the land to the best use.In 2000, he joined the District Forest Office to work in its nursery with a salary of Rs1,500 a month. Two years later, he was contracted to set up a new nursery for the office. There, for every sapling, he used to get Rs2 and his monthly income rose to Rs25,000.For the next 13 years, he worked at the Kailali District Forest Office, sent his son to a school with his earnings and even bought a piece of land. Jalal gets four batches of seeds every year in his nursery and makes up to Rs150,000 selling the seedlings. In 2018, he bought a motorcycle with the money he made from selling the seeds. <figure><img width="1366" height="630" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410118/637205db9c7e80680e0b28dcjpeg.jpg" alt=""><figcaption> </figcaption></figure>“When you have your own land, you reap all the benefits of your labour too, the result of my hard work is mine alone unlike when you slave away at someone else’s farm,” says Jaglal, who has managed to send a son to <a href="https://www.nepalitimes.com/opinion/europe-now-favoured-destination-for-nepalis/" target="_blank" rel="noopener noreferrer">Romania for work</a>, and bought another plot where he is finally building a home of his own. In July 2000, the Nepal government abolished the kamaiya system and liberated some 32,500 bonded labourers from districts in the western plains including Dang, Banke, Bardia, Kailali and Kanchanpur. Many of the former bonded labourers now have land in their own name thanks to <a href="https://www.nepalitimes.com/here-now/ground-reality-of-landlessness-in-nepal/" target="_blank" rel="noopener noreferrer">state sponsored land distribution</a>. With better access to education and healthcare, their lifestyle has also improved. Ramkumari Chaudhari, 45, was also born into a bonded labourer family near Dhangadi. Her parents married her off when she was young to a man who was also forced into a life of indentured servitude. Ramkumari with her husband Sanjay managed to sharecrop on land from the zamindar for vegetable farming. But when the landowner saw their success, he nullified the agreement and decided to farm himself. “If you want to make something of yourself in this country and be independent, you need a land of your own,” says Ramkumari, and the couple has managed to buy a small plot for their farm with a government grant. What started as a small business with two pigs has now expanded into a large swine farm spread in 0.2 hectares of land which earns them Rs40,000 a month. Ramkumari also runs a profitable vegetable farm on the side so the pigs get to eat the excess vegetables and the farm benefits from fertiliser from the sty. “We just had a hut before, but now we have a nice house. We have also bought a tractor for our farm,” says Ramkumari. “We no longer face the kind of hardships and mistreatment we did when we were kamaiya, we work without a worry. And the best thing is that your hard work earns you money.” Ramkumari and Sanjay can now afford to send their two sons to college, but the fact that many other neighbourhood children have not been able to continue their study worries her. They risk falling back to leading a l<a href="https://www.nepalitimes.com/here-now/from-slave-to-entrepreneur/" target="_blank" rel="noopener noreferrer">ife of indentured servitude</a>, she points out. Radha Chaudhari, 36, of Dhangadi municipality is also getting ready to build her own house. Her husband Navaraj was a bonded labour from birth in Rajapur of Bardia and came to this town after being freed. <figure><img width="1366" height="630" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410118/637205df9c7e80680e0b28ddjpeg.jpg" alt=""><figcaption> </figcaption></figure>But when the family did not receive any land, Navraj and Radha worked odd jobs to support their family. Navraj trained hard and is now a much sought-after mason.The government finally gave them a tiny plot of land near Dhangadi bazar, a prime location where they are planning to build their house and rent out the rest. “Our place is close to the market, which means better access to education, health facilities and jobs, we couldn’t be happier,” says Radha.In the two decades since they were freed, many <a href="https://archive.nepalitimes.com/article/Book-Review/Book-review-from-kamlari-to-lawmaker,690" target="_blank" rel="noopener noreferrer">former kamaiya</a> have found their feet. This is a success story of how former slaves have struggled to find independence, dignity and self-respect. But there are still some families who have fallen between the cracks.With the new federal system, the rehabilitation of kamaiyas was handed over to the local governments and many families found the paperwork too confusing and complicated and faced confusion and delays.There are 8,910 freed kamaiya families in the Kailali district, and most of them have been rehabilitated. But some 380 families are still waiting despite having an ID and land ownership documents.

Owning land gives former slaves self-respect

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111410114/637205299c7e80680e0b289fjpeg.jpg" alt="" width="1208" height="737"/><figcaption></figcaption></figure>The first popularly elected government led by B P Koirala enacted the Birta Abolition Act in 1959, that required zamindars formerly granted land by the state to pay full tax. <a href="https://www.nepalitimes.com/banner/america-nepal-and-the-royal-coup/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/america-nepal-and-the-royal-coup/&amp;source=gmail&amp;ust=1643077045608000&amp;usg=AOvVaw2B7iXxi6EQ44Yn6fvU7P8o">Feudal landlords opposed the move</a>, and it became one of the reasons why King Mahendra ousted Koirala in a coup d’etat on 12 December 1960.<a href="https://www.nepalitimes.com/here-now/land-reform-in-cold-war-nepal/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/land-reform-in-cold-war-nepal/&amp;source=gmail&amp;ust=1643077045608000&amp;usg=AOvVaw0_lFjeM84k9XkhIFJ4Ij_i">B P believed that only genuine land reform</a> would ensure that all Nepalis prospered together, and also deflect the Communism tide. But in <a href="https://www.nepalitimes.com/latest/putsch-ek/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/putsch-ek/&amp;source=gmail&amp;ust=1643077045608000&amp;usg=AOvVaw3728k40jtTzbzquYVdgXVu">justifying his coup</a>, Mahendra declared that Nepal’s first democratically elected government had to be overthrown because it had “failed to work in the interest of the poor”.Today, more than six decades later, BP’s Nepali Congress that espoused social democracy is leading a governing coalition. <a href="https://www.nepalitimes.com/banner/dance-of-democracy/" target="_blank" rel="noopener noreferrer">Sher Bahadur Deuba</a>, who once led the party’s student union, is prime minister for the fifth time.Yet, 1.5 million families representing a quarter of Nepal’s households, are still landless or have land issues. Some 53% of Nepal’s farmers own only 18% of the total cultivable land.After ousting B P, King Mahendra continued the भुमी सुधार land reform to retain international support and quell domestic discontent. But the effort was half-hearted: the landed kept their land. Mahendra and his son <a href="https://www.nepalitimes.com/here-now/if-birendra-was-alive-nepal-would-still-be-a-monarchy/" target="_blank" rel="noopener noreferrer">Birendra</a> ruled through a partyless Panchayat system for the next 30 years.Ironically, unequal land ownership (the very reason that pushed Mahendra to stage his coup) became one of the factors that led to the People’s Movement and the downfall of the Panchayat in 1990.But even after the multi-party system was restored, there was only tokenism for land rights. In 1991, a commission set up to resolve the issue was dissolved even before it could complete its work. In the past three decades, 18 more land reform commissions have been formed by democratic governments, only to fizzle out.Land ownership and rights have been weaponised time and again at election time since 1990 to win votes, but there has been no real change on the ground. The Nepali Congress, UML and Maoists are all guilty of making false promises to the landless.The Maoists made land to the tiller and just land distribution a major point in their 40-point demand to Deuba in 1996 during his first tenure as prime minister. Their main slogan to recruit young men and women to take up arms was to promise land.After all this, the landless have stopped trusting politicians who promise land. Disputes over land make up one-third of all cases in Nepal’s courts.Various factors have changed the dynamics of land today. While educated Nepalis do not want to farm and <a href="https://www.nepalitimes.com/editorial/high-risk-remittance/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/editorial/high-risk-remittance/&amp;source=gmail&amp;ust=1643077045608000&amp;usg=AOvVaw0fa06zRhqJSxyBT6Zn3rB4">migration is leaving arable land fallow</a>, remittances fuel the market in real estate, the price of which has risen exponentially.This unorganised and uncontrolled buying and selling of land has once again concentrated ownership in the hands of richer Nepalis, who have grown pheonmenally richer as property values escalate. There is a whole class of new-rich who have made their fortune through real estate speculation.This is why we have the farce of the Baluwatar real estate scandal that involves the mightiest in the land, even while a quarter of the country’s population is landless.The Gorkha empire’s expansion in the 18th century was financed by land, generals and soldiers were granted ownership of portions of the land they conquered. During the Shah reign, the royalty and courtiers could take what they wanted. During the Rana period, at least one-third of the total cultivable land in Nepal was distributed among those close to them. The Birta system may have been repealed six decades ago, but it is still intact in other forms through landlords, traders and brokers owning most property.Real estate today is booming business, and a major source of revenue for the state from taxes. <a href="https://www.nepalitimes.com/here-now/kathmandu-creeps-up-surrounding-mountains/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/kathmandu-creeps-up-surrounding-mountains/&amp;source=gmail&amp;ust=1643077045608000&amp;usg=AOvVaw1sT_kl8lVvxjzEaQecolxh">Urban land value appreciation</a> has made it possible for some Nepalis to become fabulously rich overnight.It is not productive when real estate speculation becomes a mainstay of the economy. It does not create jobs, and it exacerbates inequality. Private property rights effectively legitimise past injustices that parcelled out large swathes of the country to the privileged. It perpetuates discrimination and inequality, laying the seeds for future conflict.To be sure, distributing land to the landless alone does not solve their problem, nor does it erase historical discrimination. Self-respect comes from belonging to the land, giving them a sense of purpose and responsibility. It is a start. But it should be without any condition, it cannot be a publicity stunt, or ploy to pad up vote banks.If we are to safeguard the gains of the 2017 Constitution and build the pillars of the federal democratic republic from the ground up, we must pick up where B P Koirala left off 61 years ago.Translated from an Editorial in the January-February 2022 issue of <a href="https://www.himalkhabar.com/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.himalkhabar.com&amp;source=gmail&amp;ust=1643077045608000&amp;usg=AOvVaw0kZ1Nz-GpmZwGP7z3MsKDm">Himal Khabarpatrika </a>dedicated to the issue of land.

Ground reality of landlessness in Nepal

This is the first instalment in a new limited series in Nepali Times on the historic transportation infrastructures of Nepal. Nepal’s Forest Railways As<a href="https://nepalitimes.com/here-now/india-s-border-trains-that-connected-nepal"> India’s railway network </a>expanded in the 1890s and 1900s, the demand for wooden railway sleepers, called ‘ties’ in America, likewise increased. The <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/the-rana-reign-a-recap-of-history,3751">Rana regime</a> realised that western Nepal’s dense forests, from which sal trees could be extracted and sold, represented a valuable source of revenue. There was a problem of accessing large tracts of <a href="https://nepalitimes.com/here-now/the-tarai-s-shrinking-forests">Tarai forests</a>. However, once Indian railway lines are extended to Nepal’s border in several places, this issue could be resolved by constructing logging railways, also known as ‘tramways’ or ‘light railways’. The Nepal Government awarded a contract to Punjabi timber contractors to supply 15,000 sal sleepers to Chandan Chauki station of India’s Oudh &amp; Rohilkhand State Railway in 1908. The contractors also received a concession to construct a steam tramway to run 48km into <a href="https://nepalitimes.com/banner/reviving-nepals-community-forestry-success-story">Nepal’s forests</a> for cutting and transporting trees. The author found no records, however, indicating that such an ambitious tramway was built in 1908. The hewn logs were probably carried into India by bullock carts or <a href="https://nepalitimes.com/news/elephants-become-white-elephants">elephants</a>. The earliest known forest railway in Nepal was built in 1914 in the southwestern corner of the present-day Parsa district. A British engineer went to the Indian border town of Bikna Thori to plan a 4-mile portable light railway for the transport of timber from <a href="https://nepalitimes.com/here-now/on-the-tri-junction-of-wildlife-conservation-conflict-and-co-existence">the forest of Chitwan </a>to the Thori depot on the Bengal &amp; Northwestern Railway. This short line was laid upon wooden sleepers, and its rails could be taken up and repositioned when logging in one section of the forest was completed. This forest railway was in operation at least through 1917.&nbsp; A few year down the line in 1923, J V Collier of the Indian Forest Service built a narrow-gauge railway in Kailali district also to export of timber to India. This line, the Nepal Government Forest Railway, departed Chandan Chauki in Uttar Pradesh and ran 48km northwest into Nepal.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250824150820_84ddef57433c2f847b2c7e56c2d9c924084b6e6a504bbca905d2c593fac8eabd.jpg" data-media-id="editor_6" data-image-id="20250824150820_84ddef57433c2f847b2c7e56c2d9c924084b6e6a504bbca905d2c593fac8eabd" data-rendition-name="original" width="1130" height="689" loading="lazy" alt="Nepal's little railways"> <figcaption>A Nepal Government Forest train in Kailali District hauling sal sleepers in 1925. Photo: DAVID CHURCHILL </figcaption> </figure>  It was a 2-foot railway supported by 11kg rails. The line was ‘temporary’ in that as sal trees were thinned out in one area, railway tracks were shifted to uncut areas of the forest. The railway crossed seven small <a href="https://nepalitimes.com/here-now/saving-what-is-left-of-himalayan-rivers">rivers</a>, but the bridges were taken down during the summer and monsoon. Trains ran only from November to April. This forest railway purchased four 4-6-0T ‘tank’ engines built in Leeds, England. Each bogie could carry 100 broad-gauge sleepers, and two engines were needed to haul a 21-car train loaded with 2,100 sleepers. This huge commercial forest operation once employed about 14,000 men, most of them Indians. During one season, nearly 800,000 broad and metre-gauge sleepers were exported to India. When India suffered a depression in 1930, large scale operations came to an end. Read also: <a href="https://nepalitimes.com/news/rust-in-peace?fbclid=IwAR1_eg88TCOS6RGRW1af7WvaWx5mzh_rY8-vT1MnJxSs41QtCpaA988oXk8">Rust in peace</a>, Daniel W Edwards  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250824150828_13a0b894b9ea0c478904d358028f0c976d84f284432ee25106787366598d38e5.jpg" data-media-id="editor_9" data-image-id="20250824150828_13a0b894b9ea0c478904d358028f0c976d84f284432ee25106787366598d38e5" data-rendition-name="original" width="6000" height="4000" loading="lazy" alt="Nepal's railways"> <figcaption>Rails extended north from this spot into the virgin sal forests of Bardia in western Nepal 100 years ago.  DANIEL W EDWARDS</figcaption> </figure>  A third railway was built in <a href="https://nepalitimes.com/here-now/the-big-bulls-of-bardia">Bardia </a>where some scattered rails and signs of an old roadbed were seen in the 1960s. It ran from Nishangada in India to Khairbhatti in Nepal. From there, stations heading south were Ranipur, Karmak, Taratal and Madhuwan. Collier likely <a href="https://nepalitimes.com/here-now/nepal-train-project-struggles-to-stay-on-track">built this railway </a>as well in the 1920s. An elderly man in Bardia in 2022, whose father had worked on this forest railway, was interviewed for this account. Kathmandu Valley’s Motor (Trolley) Railway Merchants importing goods from India via the<a href="https://archive.nepalitimes.com/article/business/ropeways-connecting-nepal,1749"> ropeway</a> Chandra Shamsher built in 1927 had to go to the ropeway’s terminus at Matatirtha near Thankot to claim their goods and then haul them 6km to the customs house Bhansar Adda at Teku for clearance and payment of customs duties. The Motor Railway was built to carry goods from the<a href="https://archive.nepalitimes.com/news.php?id=16839"> ropeway station </a>directly to the customs office, making it cheaper and more convenient for merchants to receive their shipments. In December 1931, Prime Minister Bhim Shamsher issued an order (sanad) putting Lt Gen Singha Shamsher Rana in charge of building this rail line to Teku and on to ‘Nabalak Khana’ in Tripureswar, a distance of 10km. The project was subdivided into four sections or ‘phant’, and for each, budgets and timelines were established. There was bato phant (constructing the roadbed), lik sleeper and jordne phant (laying sleepers and joining the rails), culvert phant (installing culverts) and pul phant (building bridges). Colonel Kishore Narsingh Rana was put in charge of the sleeper and rail section, while Colonel Dilli Jung Thapa, an engineer at Ghar Kaj Adda, also was involved. The Motor Railway was completed by the end of 1933. In the beginning, the railway’s small wagons may have been pulled and pushed by men and bullocks. However, in 1938 a British railway manufacturer sent Nepal a four-wheel, 5½ ton, 2-foot narrow-gauge diesel-powered locomotive with mechanical transmission, hence the name motor railway. Read also: <a href="https://nepalitimes.com/latest/nepal-railways-janakpur-test-drive?fb_comment_id=3554227181262227_4263866616964943">Nepal Railways Janakpur test drive</a> Leaving Matatirtha, the trains passed Satungal, Naikap, the Bishnudevi Temple, crossed an iron bridge over Balkhu Khola, then to Ghattepakha, Sunagau, through what is now a section of Kuleshwor (‘Lik Marg’) to the Customs Office at Teku.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250825020852_033f0cee9775d7dadde7811132f84da876f614c386e3677e560ba7aed79909d9.jpg" data-media-id="editor_15" data-image-id="20250825020852_033f0cee9775d7dadde7811132f84da876f614c386e3677e560ba7aed79909d9" data-rendition-name="original" width="2000" height="1333" loading="lazy" alt="railways in Nepal"> <figcaption>Lik Marg in Kuleswor, the former route of the Motor Trolley Railway. Photo: DANIEL W EDWARDS</figcaption> </figure>  In 1945, Motor Trolley had four engines, but spare parts was badly needed. The charge for transporting one maund (about 40kg) of cargo from Matatirtha to Teku was 50 paisa. Even though the trains ran slowly and only for a short distance, <a href="https://nepalitimes.com/news/fatalism-and-fatalities">accidents were not unknown</a>. A train loaded with rice, salt and cotton derailed on a curve in July 1946, and two railway employees were crushed under the cars and killed, five others were injured. Besides the driver and a brakeman, guards rode the trains to prevent theft of goods.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250824150836_63a327d4db3b067a23dd5c6cf17a31ffe811ffd4a8429bc31011d62298a90060.jpg" data-media-id="editor_17" data-image-id="20250824150836_63a327d4db3b067a23dd5c6cf17a31ffe811ffd4a8429bc31011d62298a90060" data-rendition-name="original" width="6000" height="4000" loading="lazy" alt="Nepal's railways"> <figcaption>The author by the remains of the Balkhu Khola bridge built in 1932 with American steel. Photo: JEEVAN NEPAL</figcaption> </figure>  By 1953, government budget estimates indicated the Motor Railway would break even with an income of Rs70,000 against Rs71,000 in expenditure. It appears the railway stopped service around 1957 with the opening of the Raj Path and the extension of the ropeway from Matatirtha to Bhansar Adda. Bent steel beams of the bridge across Balkhu Khola and two plaques recovered from the river a few years ago are the only remains of this railway today. Photos of the Motor Trolley Railway in operation are hard to come by.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250825020848_3a7cd17d0ffc36bbf5fdad404f5f6e91c7aa0e4f4ed729ed2c7e9c186f32ca9b.jpg" data-media-id="editor_18" data-image-id="20250825020848_3a7cd17d0ffc36bbf5fdad404f5f6e91c7aa0e4f4ed729ed2c7e9c186f32ca9b" data-rendition-name="original" width="5189" height="1979" loading="lazy" alt="railways in Nepal"> <figcaption>Steel plaque commemorating the construction of a Motor Trolley bridge across the Balkhu Khola. Photo: DANIEL W EDWARDS</figcaption> </figure>  The Kosi Project Railway (KPR) As early as 1941, India and Nepal considered building a dam on<a href="https://nepalitimes.com/here-now/the-kosi-s-sorrow-and-scope"> the Kosi River</a> to prevent destructive floods caused by <a href="https://nepalitimes.com/editorial/when-it-rains-it-pours-ksqprbu3">monsoon rains</a>. Floods in 1950 inundated 500 villages in Bihar and left 500,000 people homeless. The two governments signed an agreement in 1954 to build a barrage on the Kosi, and King Mahendra and Prime Minister Nehru laid the foundation stone in April 1959. To transport stones from a quarry near Dharan to use in mixing concrete at the construction site, the Indian government, in charge of building the barrage, made plans to build a narrow-gauge railway linking Bihar and its border town of Bhimnagar with Nepal’s settlements at Chakraghatti, Chatra and Ghopa, the outskirts of Dharan.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250824150816_fc5e13b01022c63c64f1e83589da0015eee7ecd002bdd3d97b88c98c1f3d45b7.jpg" data-media-id="editor_21" data-image-id="20250824150816_fc5e13b01022c63c64f1e83589da0015eee7ecd002bdd3d97b88c98c1f3d45b7" data-rendition-name="original" width="4011" height="2645" loading="lazy" alt="Nepal's railways"> <figcaption>Steel plaque commemorating the construction of a Motor Trolley bridge across the Balkhu Khola. Photo: DANIEL W EDWARDS</figcaption> </figure>  The section of the KPR in Nepal totaled 66km — the country’s longest railway to date. The stations south of Chakraghatti were Rajabas, Maduhuwan, Kushaha, Haripur and Bhantabari. The line built, operated and owned by the Indian Government, was opened in 1958 and known locally as Dhunge (stone) Rail. Procuring locomotives, wagons and other materials was a challenge. India’s Railway Board searched the country for old 41 lb rails, and located steam engines, most built around 1910, in poor condition, and stored in ‘retirement’. These decrepit locomotives were later cannibalised for parts to keep the remaining engines running, and six newer locomotives built in Yugoslavia were sent to the KPR in 1960 to prevent the railway from shutting down and halting construction of the barrage.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250824150832_fd644f9e2674c5047a531de5dfeb2c8860b0f93dddc7a2df3db867bf31b2c94b.bmp" data-media-id="editor_22" data-image-id="20250824150832_fd644f9e2674c5047a531de5dfeb2c8860b0f93dddc7a2df3db867bf31b2c94b" data-rendition-name="original" width="3171" height="2069" loading="lazy" alt="Nepal's railways"> <figcaption>KPR locomotives, water tank and staff at Chakraghatti in Nepal. Photo: JOHN BENSON</figcaption> </figure>  Used bogie-wagons (gondolas) came from <a href="https://nepalitimes.com/here-now/india-nepal-rail-diplomacy">Indian railways</a> that had been converted to metre-gauge, others were manufactured in Muzaffarpur without couplers due to the non-availability of steel. A hundred new wagons arrived from Japan, but only half could be put in service, as couplers from the other 50 were removed and attached to the Muzaffarpur wagons. This smorgasbord of equipment kept shop mechanics and work crews busy, but now-abandoned railways in Nepal always operated under less-than-ideal conditions. Although the purpose of the KPR was to transport gravel, stones and boulders to the site of the barrage, photographs show people riding in loaded wagons. Excluding Dharan, there was no bus service through the wild animal infested jungle between Dharan and Chakraghatti or along the dusty paths linking other small villages on the KPR, so patient locals sat in wagons at Dharan, waiting perhaps for hours for trains to depart.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250825020852_7d011dcc8e9b8cb0fe745b352486ebc4a84dac99419eadb35875333db20837c6.jpg" data-media-id="editor_24" data-image-id="20250825020852_7d011dcc8e9b8cb0fe745b352486ebc4a84dac99419eadb35875333db20837c6" data-rendition-name="original" width="3965" height="2659" loading="lazy" alt="railways in Nepal"> <figcaption>Ticketless riders on a train of gravel and stones in the forest between Dharan and Chakragatti in 1966. Photo: JOHN BENSON</figcaption> </figure>  Sons of former railway workers in Chakraghatti say that there were no fixed schedules, three or four trains ran both ways daily in the early 1960s. Southbound trains carried gravel, stones and boulders, while northbound trains would carry coal, cement and provisions, including sacks of coins to pay the workers. Trains even ran at night, and the crews worked long hours. Workers received free housing in project-built tenements but had to buy food supplies and items for personal use. The Babu Saheb or the superintendent lived at Chakraghatti, and at one time supervised more than 1,000 employees, nearly all of them from India. The barrage was completed in 1964, but by 1970, the Kosi Project Railway had passed into history. Daniel W Edwards was a Peace Corps volunteer in 1966 and is the author of several books on Nepal.

Nepal’s five little railways

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

30 years after Baby Arun

Turkish Airlines is official airline partner for the second edition of the Vatsalya Everest Women’s Volleyball League (EWV). The league, scheduled for 5-13 September, will take place in Pokhara and feature 18 international players alongside elite Nepali volleyball talent. The agreement was signed by Turkish General Manager Serkan Başar, and EWV CEO Snevy Chapagain. “Turkish Airlines’ support ensures a seamless journey and adds immense prestige to the league’s goal of women’s empowerment through sports as well as the agenda of sports tourism,” said Chapagain. “We are thrilled to partner with Vatsalya Everest Women’s Volleyball League as the official airline. With this association, we aim to support women role models in sports. We believe this association will connect countries to Nepali volleyball,” remarked Basar.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250825030844_36df66612152abbea71f15579358a2bb0fe797f21cbe7e7c7f28e3fe91655ae4.jpg" data-media-id="editor_0" data-image-id="20250825030844_36df66612152abbea71f15579358a2bb0fe797f21cbe7e7c7f28e3fe91655ae4" data-rendition-name="original" width="1920" height="1280" loading="lazy" alt="Turkish"> </figure>

Turkish to sponsor women’s volleyball league

India and China have a long-standing border dispute along their Himalayan border which has erupted in violent skirmishes. But Indian and Chinese officials last week agreed to ignore Nepal’s own border dispute with India to facilitate trade. The Indian Ministry of External Affairs this week flatly rubbished <a href="https://nepalitimes.com/editorial/territorialism">Nepal’s territorial claims</a> to the Lipulek Pass and the Kalapani Region, including Limpiyadhura, which Nepal considers as the source of the Mahakali River that forms Nepal’s western border with India. The latest episode in this dispute has come as Sino-Indian relations have thawed after US President Donald Trump slapped <a href="https://nepalitimes.com/news/nepal-and-the-us-india-tariff-tiff">sanctions on Indian exports</a>. The joint communiqué in Beijing said India and China had agreed to resume their border trade through the Nathu La, Sipki La and Lipulek during Chinese foreign minister Wang Yi’s visit to New Delhi. Lipulek is a pass 10 km north-east of <a href="https://nepalitimes.com/news/there-is-precedent-to-settling-kalapani">Kalapani</a> which has been disputed ever since the Survey of India published its 1879 map, where the source of the Mahakali was suddenly shifted from Limpiyadhura to Lipulek.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250826060824_4e68dd5964e0995b91148de9978a1de52b19691e1b01f52a405924fd130c22bd.jpg" data-media-id="editor_3" data-image-id="20250826060824_4e68dd5964e0995b91148de9978a1de52b19691e1b01f52a405924fd130c22bd" data-rendition-name="original" width="2000" height="2083" loading="lazy" alt="Lipulek dispute explainer"> </figure>  This tributary of the Mahakali was called the Kali on this map, and is a fordable tributary and not the main channel of the border river. The main Kali River was renamed Kuti Yangdi, and this happened while the British were still in India presumably to gain access to the Lipulek in contravention of the 1816 <a href="https://nepalitimes.com/banner/borderline-disorder">Sugauli Treaty</a>.&nbsp; This subterfuge continued even after India gained independence in 1947. Nepal has maintained that the main channel of the Kali is the border as per the 1816 treaty, when Nepal lost a third of its territory to British India. It is all well and good that India and China are now friendly enough to <a href="https://archive.nepalitimes.com/news.php?id=19447">open border trade</a> routes, but it should not be in violation of Nepal’s territorial integrity. Nepal should be called for diplomatic and political negotiations regarding the Lipulek pass and the Kalapani region comprising Limpiyadhura.&nbsp; Read also: <a href="https://nepalitimes.com/opinion/comment/when-xi-meets-modi-and-oli">When Xi meets Modi and Oli</a>, Kanak Mani Dixit China and India, but especially the latter, should invite Nepal to discuss these issues and iron out the disputes based on facts and evidence and maps. Nepal had sent seven diplomatic notes to India and three to China so far regarding the Lipulek and Kalapani. India has not responded to any of them. China replied once saying that Nepal and India should sort out their border disputes first before voicing their opinions. Nepal welcomes the recent talks between India and China that it hopes will positively impact on settling border disputes that are mostly stalled since the 1962 Sino-Indian war, the 73-day military standoff over the disputed Doklam region between China and Bhutan, and the 2020 Galwan clash in Ladakh. Nepal’s two large neighbours seem to have come to their senses and realised that it is in their interest to collaborate rather than confront each other when President <a href="https://nepalitimes.com/opinion/trump-s-first-month">Trump is acting erratically</a> with threats of sanctions and tariffs.&nbsp; Prime Minister K P Oli should bring up Nepal’s grave concerns about the Lipulek during his state visit to India next month when he will meet Prime Minister Narendra Modi in Bodh Gaya. The two are also expected to meet next week at the Shanghai Cooperation Organisation summit in Tianjin when Chinese President Xi Jinping will also be present. But even before that Nepal should send diplomatic notes to both the Indian and the Chinese governments regarding their agreement to resume border trade through the Lipulek.&nbsp; Here is a timeline of the developments regarding the Lipulek: Sino-Indian Agreement of 1954 This 8-year Agreement on Trade and Exchange between Tibet and India was signed in Peking on 29 April, 1954 by the Chinese Vice-Foreign Minister Chang Han Fu and the Indian Ambassador Nedyam Raghavan.&nbsp; There was no explicit mention on the border settlements either on the Line of Actual Control (LAC) or on Ladakh, although trade and pilgrimage through Lipulek and other 5 passes (Sipki La, Mana Pass, Niti Pass, Kungri Bingri Pass and Dharma Pass) were agreed upon.&nbsp; Trade between Uttar Pradesh state and the Tibet Autonomous Region was through ‘border &nbsp;point of the agreement states: ‘With a view to facilitating the visits of persons engaged in border trade and the exchange of commodities and means of transportation, (India and China) have decided that Lipulek (Qiangla) be the border pass for the entrance and exit of the said persons, commodities and means of transportation from the two sides.’ The agreement expired on 6 June 1962 during the Sino-Indian war, and the two sides did not renew it. Bilateral ties started to normalise only in the 1990s with the Indian decision in 1988 to abandon its policy of settling ‘territorial issue’ for ‘normalisation of relations’. India There was no reaction from Nepal to the 1954 agreement since Nepal did not have diplomatic relations with China yet at the time. Sino-Indian Agreement of 2005 The Political Parameters and the Guiding Principles for the Settlement of the Sino-Indian Boundary Question is detailed in 11 Articles, which outline the steps to be taken for a Peaceful and Tranquil Border. The agreement was a direct outcome of the Special Representatives mechanism that had been set up through a 2003 agreement. It also incorporated the Confidence Building Measures in Military Field along the Line of Actual Control (LAC) in the Sino-Indian Border Areas signed in 1996.&nbsp; A protocol on Modalities for the Implementation of Confidence Building Measures in the Military Field along the Line of Actual Control in the India-China Border Areas signed during Chinese Premier Wen Jiabao’s India visit, which stated in Clause 2 of Article 5: ‘Both sides agree to extend in principle to expand the mechanism of border meeting points to include Kibithu Dhamal in the Eastern Sector and Lipulek Pass (Qing La) in the Middle Sector. The precise locations of these border meeting points will be decided upon mutual consultations.’ Nepal’s Foreign Ministry issued a statement in 2005 stating that Nepal had asked China about the issue and the Chinese Embassy clarified that the agreement had nothing to do with Kalapani. This was perhaps the first time that Nepal had objected to the Sino-Indian agreement on Lipulek. King Gyanendra had staged a coup d’état on 1 February 2005, just two months prior to this agreement. The Nepali press voiced criticism of China in particular for disregarding the country’s sentiment.&nbsp; Sino-Indian Agreement of 2015 India and China signed several documents during the state visit of Chinese President XI Jinping to India on 18 September 2011. Number one on the list was: ’Opening a New Route for Indian Pilgrimage (Kailash Mansarovar Yatra) to the Tibet Autonomous Region of the People’s Republic of China’.&nbsp; The Indian foreign ministry stated: ‘The MoU provides for conducting the annual Kailash Mansarovar Yatra through Nathula Pass in Sikkim in addition to the existing Lipulek Pass in Uttarakhand’. On May 15, 2015, China and India issued a Joint Statement during Indian Prime Minister Narendra Modi’s visit to China. Point 28 under the ‘Trans-border Cooperation’, states that the two sides agreed to ‘hold negotiation on augmenting the list of trades commodities, and expand border trade at Nathu La, Quingla/Lipulek Pass and Sipki La Pass’. Nepal’s objection to the 2015 agreement was stronger than in 2005. Prime Minister Sushil Koirala called up Narendra Modi to express Nepal’s displeasure It was not until 2020 that Nepal’s Foreign Minister disclosed that ‘Nepal had expressed its disagreement in 2015 through separate diplomatic notes addressed to the governments of both India and China … including Lipulek Pass as a bilateral trade route without Nepal’s consent.’  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250826060824_d4497e2620bba81211d27e427393974877e09006abc26e13055508996e5b29ea.jpg" data-media-id="editor_8" data-image-id="20250826060824_d4497e2620bba81211d27e427393974877e09006abc26e13055508996e5b29ea" data-rendition-name="original" width="1108" height="1550" loading="lazy" alt="Lipulek dispute explainer"> </figure>  The new political map of India published by the Survey of India in November 2019 that incorporated areas east of the Kali River including Kalapani as Indian territory sparked renewed public, and political, attention to the Mahakali dispute. The Nepal government then countered by formally approving the publication of the new Political and Administrative Map of Nepal including all territories lying to the east of the Mahakali River on May 18, 2020. In June, the House of Representatives unanimously endorsed the second amendment to the Constitution of Nepal to update the country’s new political map in the national emblem. Sino-Indian Consensus of 2024 A 6-point Consensus on Peace and Tranquility on the Line of Actual Control (LAC) was agreed on December 18, 2024 between the Special Representative of the People’s Republic of China, Wang Yi, and the Special Representative of the Republic of India, Ajit Doval.&nbsp; India has not denied that this is a consensus, while China made it clear that this was not a Joint Statement. This Consensus is in line with the 2005 agreement, and was agreed during the 23rd round of the Special Representatives talks held after a gap of five years aimed at restoring bilateral ties frozen because of the military standoff in Ladakh. The agreement included: cross-border communication and cooperation, promoting the resumption of pilgrimages by Indians to Xizang, cooperation on crossborder rivers, and trade at the Nathu La Pass. Nepal made no reaction to the statement despite Lipulek being the pilgrimage route for Mansarovar and Kailash.&nbsp; Prabhakar Sharma is a construction engineer and an international border expert who has worked as a survey engineer for the Cameroon-Nigeria border demarcation by the United Nations.

land-ownership