<figure><img width="584" height="391" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141116/636ba8669c7e80680e0737dcjpeg.jpg" alt=""/><figcaption></figcaption></figure>The Managing Director of the Nepal Electricity Authority (NEA) Kulman Ghising, who is largely credited with ending Nepal’s ruinous daily power cuts that lasted more than a decade, is likely to get his four-year term extended.Ghising was due to step down on 14 September, but after widespread public outrage on social and mainstream media, the Energy Ministry has prepared an endorsement for another four-year term.Sources said Energy Minister Barsha Man Pun has proposed that Ghising be allowed to continue to Prime Minister Oli as well as brought it up with NCP co-chair Pushpa Kamal Dahal. “The prime minister is ready to extend Kulman Ghising’s term,” a source at the Energy Ministry said on Sunday. “But the has said Ghising will henceforth have to behave like he is a part of the government, and not an independent entity.”Read also: <a href="https://www.nepalitimes.com/here-now/kulman-ghisings-tenure-at-nea-in-doubt/" target="_blank" rel="noopener noreferrer">Kulman Ghising's tenure in doubt</a>, Ramesh KumarIf true, the remark appears to reflect the prime minister’s unease with Ghising’s popularity for having ended the crippling 12-18 hour power cuts for which his predecessors at the NEA are held responsible.  <figure><img width="1500" height="908" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141116/636ba8689c7e80680e0737ddjpeg.jpg" alt=""><figcaption> </figcaption></figure><figure><img width="1500" height="930" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141116/636ba86b9c7e80680e0737dejpeg.jpg" alt=""><figcaption> </figcaption></figure>Earlier this week Finance Minister Yubaraj Khatiwada had publicly warned Ghising: “He was not appointed by social media, he was appointed by the government, and the decision on extending his tenure is the responsibility of the government.”Ghising himself had issued a statement this week after rumours spread that his term had been extended. He said he did not deserve all the credit for ending power cuts, and it was a team effort of the government.Pushpa Kamal Dahal reportedly told Pun that it would not reflect well on the government if Ghising was replaced when he is so popular in the public eye.The Energy Ministry sources said a formal letter about Ghsiing extension was ready and would be forwarded to the Cabinet for approval. <figure><img width="1500" height="1056" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141116/636ba86e9c7e80680e0737dfjpeg.jpg" alt=""><figcaption> </figcaption></figure><a href="http://archive.nepalitimes.com/article/interview/interview-with-Kulman-Ghising,3409" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/article/interview/interview-with-Kulman-Ghising,3409&amp;source=gmail&amp;ust=1598882705470000&amp;usg=AFQjCNGY4avowF3s188UAACqQqpWBgIJxw">Ghising is an electrical engineer</a> who systematically reduced pilferage, and <a href="https://archive.nepalitimes.com/article/nation/corruption-in-electricity-industry-of-Nepal,3408" data-saferedirecturl="https://www.google.com/url?q=https://archive.nepalitimes.com/article/nation/corruption-in-electricity-industry-of-Nepal,3408&amp;source=gmail&amp;ust=1598882705470000&amp;usg=AFQjCNHAU2CzfGU9I4EEzV9HIV8F-I7btA">cut off 24-hour dedicated feeds</a> through which his predecessors had been providing businesses low tariff electricity in return for kickbacks. At the height of the power cuts in the winter of 2016 after the earthquake, Nepalis were getting only six hours of electricity a day. Collusion between NEA officials and industrialists allowed half the 750MW electricity generated to be diverted to businesses.   After he took over, Ghising expedited hydropower projects, removed delays in the construction of transmission lines, and imported power from India to meet winter shortfall. NEA was also able to reduce pilferage from 25% to 15%, saving the utility Rs7 billion a year. Imports from India have declined steadily from 35% of total supply for the past five years to 22% this year (see charts, above).  From 2012 to 2016, when Nepalis faced the longest periods of load-shedding, the NEA cumulatively lost Rs25 billion. The greatest annual loss of nearly Rs9 billion was in fiscal year 2015-2016. After Ghising took over, NEA’s profits soared to Rs1.5 billion, and is now set to cross Rs11 billion this fiscal year.

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Kulman Ghising to stay on

<figure><img width="1400" height="787" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110714114/636902ac9c7e80680e037c79jpeg.jpg" alt=""/><figcaption>DHCF</figcaption></figure>Nepal’s planners have always faced an uphill task in ensuring energy self-sufficiency. The main issues in the past have been politics, the absence of a strategic vision, and policies that forced the country<a href="https://www.nepalitimes.com/here-now/how-they-kept-nepal-in-the-dark-ages/" target="_blank" rel="noopener"> to suffer chronic power cuts</a>. But the country has a new beginning with a new government that has promised political stability and economic prosperity.The other challenge is an engineering one. Nepal may have one of the highest per capita hydropower potential, but most of the total 1044MW capacity today comes from run-of-river plants which depend on the water flow to turn turbines, and not from <a href="http://archive.nepalitimes.com/regular-columns/Comment/storing-water-reservoir-Nepal,1042" target="_blank" rel="noopener">reservoirs</a> that can store monsoon water for the dry season.This means the country suffers from <a href="http://archive.nepalitimes.com/article/nation/How-%20to-%20avoid-power-cuts-this-winter-solar-energy-LED,3769" target="_blank" rel="noopener">shortfalls in production during winter when peak demand is highest</a>. There are also the daily peaks in the mornings and evenings that need to be covered by Nepal’s only storage dam, the 92MW Kulekhani cascade. Currently, Nepal meets nearly all its peak demand by <a href="http://archive.nepalitimes.com/article/nation/nepal-india-thermal-power,3570" target="_blank" rel="noopener">importing coal-fired electricity from India</a>.Peak load demand is traditionally met with electricity from hydropower reservoirs or power plants burning fossil fuels. But as countries try to meet carbon emission targets, there is pressure to adopt solar and other renewable energy sources to meet gap. <img width="736" height="1500" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110714114/636902af9c7e80680e037c7ajpeg.jpg" alt="">This is precisely what the <a href="http://www.dolmaimpact.com/" target="_blank" rel="noopener">Dolma Himalayan Climate Fund (DHCF)</a> is trying to do with its proposal to generate 150MW of solar power and store 20MW of it in battery systems to meet Nepal’s seasonal and daily peaks.Called Peak Energy Management (PEMa) System, the first phase of the project got approval from the Investment Board Nepal (IBN) last week to ‘time-shift’ daytime solar generated power to help meet evening peak demand, and also store surplus hydroelectricity generated during the night to partially meet the morning peak demand.Such generation and storage of solar power would have been prohibitively expensive till even two years ago. But the cost of storing energy in batteries dropped to less than $200/kWh from $1,200/kWh ten years ago. The price of photovoltaic cells have similarly plummeted to only $60/MWh compared to $400/MWh in 2008.The other advantage is that a project of this scale can be up and running within two years compared to the decade that it will take for Nepal’s next big reservoir projects like Budi Gandaki and Tanahu. Solar is also much more ecologically benign. There is a neat fit: Nepal’s peak demand is in winter when solar generation is highest because of cloudless skies.“We are not trying to replace hydro with solar, we just want a flexible and reliable system to meet peak demand by complementing hydropower,” explains Mike Winkel, Director of the Dolma Himalayan Climate Fund, an offshoot of the Dolma Impact Fund, the first international private equity fund for Nepal which has investments in the hydropower, technology, agriculture and health sectors.The Dolma Group was set up by Tim Gocher, a finance executive and professor specialising in energy. (<a href="https://www.nepalitimes.com/business/a-part-of-something-bigger/" target="_blank" rel="noopener">Read interview</a>, and <a href="https://www.youtube.com/watch?v=zzp3Lh9zCNU" target="_blank" rel="noopener">watch Nepali Times Studio on our YouTube Channel</a>.)“The project is not going to replace hydro by any means, but solar does give Nepal another energy option which should directly offset some of the imports from India,” Gocher told Nepali Times.The PEMa serves the same purpose as a storage dam to cover peak winter demand, but unlike reservoirs it can be completed in two years, and can be quickly upscaled to 850MW in the second phase. This makes business sense because Nepal’s electricity demand is expected to grow at 7% per year, while peak deficit will continue for another ten years until the big dams come online.“It will buy Nepal time with short-term supply of power to meet peak time deficits,” says Sandip Shah, Managing Director of DHCF, an energy specialist who was formerly with the Norwegian SN Power. <img width="839" height="355" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110714114/636902b29c7e80680e037c7bjpeg.jpg" alt="">“My entire career has been with hydropower, and I have always grappled with making Nepal self-reliant in meeting daily and seasonal peak power deficits. With prices of solar and battery coming down, the technology is finally there to make Nepal energy independent,” explains Shah.When it comes into operation, possibly by 2020, PEMa will be one of the first utility scale battery operated grid power plants in the region, and it will immediately reduce Nepal’s power import bill as well as carbon footprint which has doubled due to the current import of coal-fired energy from India.At the Investment Board Nepal, CEO Maha Prasad Adhikari is also excited about the venture. “This is an innovative way to improve Nepal’s energy mix, and can support our peak-time and dry season demand within a short timeframe.”The Dolma Impact Fund will also be building on its investments in <a href="http://archive.nepalitimes.com/article/nation/reservoirs-of-suspicion/hydropower-geopolitics%20,3991" target="_blank" rel="noopener">Nepal’s hydropower</a>, that include the 28.1MW Lower Likhu project in Okhaldhunga and the 6.4MW Suri Khola Project in Dolakha into which the Fund has injected $4.5 million and may invest more in hydropower or other solar projects.Winkel used to be with the global energy giant E.ON managing 60,000MW grids, and says PEMa is trying to find the optimal technology to meet the shortfall in Nepal’s peak energy supply. He adds: “Making renewable energy competitive has driven me for many years, and PEMa makes this vision a reality by combining state-of-the-art power generation and storage technologies to deliver clean, secure and competitive electricity for Nepal.”Read also:<a href="https://www.nepalitimes.com/here-now/how-they-kept-nepal-in-the-dark-ages/" target="_blank" rel="noopener">How they kept Nepal in the dark ages</a>, Ramesh Kumar<a href="http://archive.nepalitimes.com/regular-columns/Comment/storing-water-reservoir-Nepal,1042" target="_blank" rel="noopener">Storing water</a>, Bishal Thapa<a href="http://archive.nepalitimes.com/article/nation/nepal-india-thermal-power,3570" target="_blank" rel="noopener">Cloud with a dark lining</a>, Om Astha Rai

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Nepal turns to solar and batteries to meet peak demand

Prolonged power cuts were not due to undersupply but because of rampant corruption <figure><img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110710110/6368c9309c7e80680e02f29ajpeg.jpg" alt=""/><figcaption>Kathmandu is now lit up after the end of load-shedding. Pic: Bikram Rai</figcaption></figure>Nepalis endured a crippling power shortage for a decade from 2006-2016, and were told over and over again that it was because of the gap between demand and supply. The Nepal Electricity Authority (NEA) blamed the war for delayed projects, political instability -– everything but corruption.However, in 2016 Nepalis got a pleasant surprise. As soon as the NEA had a new chief, <a href="http://archive.nepalitimes.com/article/interview/interview-with-Kulman-Ghising,3409">Kul Man Ghising</a>, they started getting 24 hours of power supply. It was a miracle. Or was it?Ghising said modestly then that it was just a matter of “better management of demand and supply”. But our investigation has revealed that Nepalis did not suffer from load-shedding just because of undersupply but because of structural corruption -- <a href="http://archive.nepalitimes.com/article/nation/corruption-in-electricity-industry-of-Nepal,3408"> top NEA executives were selling electricity to industrialists,</a> leaving household consumers in the darkness for 10 years. <img width="640" height="326" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110710110/6368c9339c7e80680e02f29bjpeg.jpg" alt="">In the winter of 2014, Nepalis were enduring 14 hours of power outage every day at a time when the NEA was supplying uninterrupted electricity to selected cement factories, cotton mills and steel manufacturers.Hydro-electricity cost Rs7 per unit that year -- four times cheaper than per unit cost of diesel-powered generators (Rs29). Industrialists wanted cheap uninterrupted power and were willing to pay the NEA brass under the table to give them a dedicated feed. Businessmen saved millions they would have otherwise spent on buying expensive diesel. NEA officials filled their pockets. And everyone got their share.Documents which Himal Khabarpatrika has acquired show that NEA Managing Director at the time, Mukesh Raj Kafle, alone sold 50 MW of electricity to Reliance Spinning Mill, Triveni Spinning Mill, Hulas Steel, Shivam Cement, Sarbottam Cement and six jute mills in Biratnagar, leading to load-shedding even during the monsoon.The modus operandi was simple: industrialists requested dedicated feeders, the NEA's regional managers recommended uninterrupted power supply, and the MD ordered the dispatchers to ensure 24 hours electricity to selected customers. <figure><img width="640" height="684" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110710110/6368c9369c7e80680e02f29cjpeg.jpg" alt=""><figcaption> </figcaption></figure><img width="640" height="925" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110710110/6368c93a9c7e80680e02f29djpeg.jpg" alt="">Kafle learnt the trick from his predecessors when the nexus evolved in 2006 while Arjun Karki was NEA chief and Sher Singh Bhat headed the Load Dispatch Centre.Karki and Singh forced Nepalis to bear up to 17 hours of power outage daily in winter, while supplying 24-hour power to influential business groups. In January 2013, the NEA Board of Directors ordered that dedicated feeders be disconnected. But that decision was reversed when Rameswor Yadav became the NEA's new MD.That year, a probe panel led by Shyam Sundar Shrestha, Deputy Director General of Electricity Development Department, concluded that the NEA was 'arbitrarily' supplying uninterrupted electricity to industrial plants operated by powerful businesses. The panel recommended further investigation and action against the guilty.After Kafle became MD, he brushed that report under the carpet, blaming undersupply. Only after Ghising replaced Kafle did the NEA cut the dedicated feeders to industrial plants, and made sure electricity was distributed evenly. Ghising also imported more electricity from India to fill the gap caused by the increase in suppressed demand. But NEA spokesperson Prabal Adhikari says cutting off dedicated feeders to industries and importing more electricity from India were not the only factors leading to an end to power cuts.  "We have also cut leakage. People don’t use inverters to store power in batteries, and this also reduced demand,” he explains.Apart from industrialists and NEA officials, the other sector that benefited from power cuts were solar and diesel generator traders. In 2015, Nepal imported diesel generators worth Rs3.26 billion and solar panels worth Rs2.1 billion. This fiscal year, the country imported only Rs 2.1 billion worth of diesel generator and Rs290 million in solar panels.  Who got 24-hour electricity? FACTORIES-Reliance Spinning Mill-Shivam Cement-Hulas Steel-Sarbottam Cement-Triveni Spinning Mill-Arihant Multifibers-Raghupati Jute Mill-Baba Jute Mill-Swastik Jute Mill-Nepal Jute Mill-GB Textile-New Narayan Rubber-Sakuara Pipe-Sita Food Industry-Satyawoti Concrete Industry-Siddartha Mineral Pvt Ltd-Hetauda Cement-Sino Hydro Corportation-Multi-Purpose Plastic Industry-Pashupati Sim Pack-Kamala Rolling Mill-Asian Thai Foods-Mainawati Steel Industry-Arihanta Poly Pack-Maruti Cement-Dhanlaxmi Synthetic-Negale cement-Jagadamba Steel-Hulas WireGOVERNMENT-Shital Niwas-Nirmal Niwas-Ex-princess Prekshya Rajya Laxmi ShahBANKS-Rashtriya Banijya Bank-Agriculture Development BankHOSPITALS-Norvic Nursing College-Devdahal Medical College-Manipal College of medical sciences-Himalayan eye hospital-Neuro Hospital-BP Memorial Hospital-Green City Hospital-Ishan Child Nursing Home-Medicare Hospital-Kantipur Dental College-Sahara Hospital -Annapurna Neuro Hospital-Norvic Hospital-Shanti Hospital-Jaya Buddha Hospital-Pushpanjali Hospital-Om Hospital-Manakamana Nursing Home-Saptagandaki Medical College-Maula Kalika hospital-Asha Hospital (Centre for Investigative Journalism)

How they kept Nepal in the dark ages

The monsoon has got bad press because Nepal’s tourism operators actively told visitors to avoid <a href="https://nepalitimes.com/opinion/managing-the-monsoon?%2F">the rainy season</a>. It is time to change that. The reason can be found right here in the vast alpine meadows of Central Nepal where this time of year you can walk on velvet grass of pastures abloom with delicate pink, red and yellow flowers as the mist rolls up the valley. There is no sound except the hum of bumble bees. &nbsp;&nbsp; There are dozens of places across high Nepal called Chaurikharka, which means yak pasture. But this particular Chaurikharka in Rukum East located at an altitude of 4,000m stands out for its serene beauty, rustic charm and bucolic setting. There is just the occasional chime of <a href="https://nepalitimes.com/here-now/when-yaks-go-so-does-culture">yak bells</a> in the distance, and the sharp whistle of herders corralling sheep. &nbsp;&nbsp; The grass shoots are so fragile that one hesitates to step on them, the rounded ridges appear and quickly vanish in waves of mist. With the<a href="https://nepalitimes.com/here-now/before-the-next-monsoon"> arrival of monsoon</a>, these meadows are a soothing shade of green dotted with millions of <a href="https://nepalitimes.com/review/the-anatomy-of-a-flower?%2F=">multi-coloured flowers</a>. Until very recently, it took a week or so to hike up to places like Chaurikharka, but with the expansion of the road network even to these far-flung mountains in the lap of Dhaulagiri, they are much more accessible. It is just a three-hour uphill from the Mid-Hill Highway on the border between Baglung and Rukum East.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16.jpg" data-media-id="editor_4" data-image-id="20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Purists would say that such easy access devalues the sanctity of these remote high meadows, but it also means more people will be moved to treasure the experience, appreciate <a href="https://nepalitimes.com/banner/natures-fragile-gift-to-nepal">the value of nature </a>so they can take steps to protect it.&nbsp; To be sure, the <a href="https://nepalitimes.com/here-now/deadly-monsoon-in-nepal-turns-deadlier">monsoon season can be challenging for road travel</a>. The roads are rough even at the best of times, and in the monsoon they become muddy and treacherous, often blocked by<a href="https://nepalitimes.com/news/monsoon-deluge-in-nepal"> landslides</a>. But that could be precisely the kind of adventure that the more intrepid visitors crave. Improved road connectivity has already made Chaurikharka and places like Badimallika &nbsp;and other sacred lakes in the mountains of western Nepal popular with domestic tourists. What is driving this traffic is the urge to go to exotic new places and share videos and selfies on social media. Several of Nepal’s travel vloggers have visited Chaurikharka and popularised the place, enticing followers on TikTok or YouTube to retrace their footsteps. But even as they become more popular, these fragile and once-remote places should be protected from over-tourism.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446.jpg" data-media-id="editor_8" data-image-id="20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446" data-rendition-name="original" width="1083" height="699" loading="lazy" alt="Visit Nepal in the monsoon NT"> </figure>  <h2>INCREASING FOOTFALL</h2> Chaurikharka is located in Bhume Rural Municipality of East Rukum, near the scenic valley of Dhorpatan in Baglung district. Even in the <a href="https://nepalitimes.com/banner/monsoon-culture">middle of the monsoon</a>, there is a steady stream of Nepali hikers trooping to these high pastures – especially during festival days like Saune Sankranti which this year was on 17 July and actually marks the auspicious beginning of the monsoon here. “This year the rains have not been as heavy and there have been some clear mornings when we could see everything from Dhaulagiri to Machapuchre,” says Khageswar Bhandari, who trekked up here from the road. “The flowers, the greenery and the snowy mountain views make this an incredibly unique place.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9.jpg" data-media-id="editor_10" data-image-id="20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9" data-rendition-name="original" width="2048" height="1152" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Chaurikharka is worthwhile to get to in any season, but it has a different charm during the monsoon. Word has spread and because it is now easy to get to from Baglung or even Pokhara, people have been flocking here.&nbsp; “Holidays and Saturdays see the largest crowds, with up to 500 visitors every day,” says ward chair Mankaji Pun of Bhume.&nbsp; There was a time not too long ago when local herders brought sheep, goats, cows, buffaloes, horses, and mules to graze here during the monsoon. Although there are still livestock around, animals have been replaced by visitors taking selfies. Read also: <a href="https://nepalitimes.com/here-now/the-monsoon-and-nature-s-arithmetic">The monsoon, and nature’s arithmetic</a>, Tom Robertson Ward Chair Pun says infrastructure development is his main priority. A foot trail to Chaurikharka was built last year by the Tourism Division Office in Kohalpur, but access via the Raniwas-Koipa road section still remains challenging.&nbsp; “If we get more budget, we can improve the road and facilities to make Chaurikharka the main tourist attraction of this region,” says Bhume Municipality Chair Hom Prakash Shrestha. “After that, we hope to promote Chaurikharka as a top tourist spot.”&nbsp; Economic activity is also picking up with the arrival of visitors, but there seems to be a need to manage the makeshift sheds made of corrugated sheets that spoil the beauty of the place. Tea shops and lodges are also available but facilities are basic. Kuldeep Neupane took a three-day trip from Ghorahi in Dang to visit Chaurikharka recently, and says: “This is an ideal trip to make a quick getaway and let nature recharge your mind and body. And it is much more fun with a tent, to watch the sunrise over the Himalaya or the mist blowing in.”

Visit Nepal in the monsoon

The final investigation report on the crash of a Saurya Airlines jet on 24 July 2024 at Kathmandu airport has revealed flaws in the carrier’s technical operation procedures, poor monitoring by the Civil Aviation Authority of Nepal (CAAN) and gaps in the airport’s emergency response. Eighteen people including a child were killed, and only the captain survived as the plane plunged seconds after takeoff, crashing within the airport perimeter. This was the latest in a series of aircraft accidents in previous years, and further tarnished Nepal’s already poor aviation safety record and contributed to the country being retained in the EU’s air safety list. &nbsp;&nbsp;&nbsp; The circumstances in the Saurya crash were different from the Yeti Airlines crash in Pokhara in January 2022 that killed all 72 on board, and two Tara Air crashes in February 2016 and May 2022 on approach to Jomsom that together claimed 45 lives. However, all four tragedies were a result of negligence of carriers and crew, failure to follow procedures, regulatory slackness, and overconfidence. The Saurya crash, especially, was a glaring example of how an ailing airline broke its own rules to allow passengers, including non-employees, a joy ride to Pokhara on a maintenance ferry flight. CRASH REPORT The Final Investigation Report prepared by the Aircraft Accident Investigation Commission and released on the first anniversary of the crash last week carried a long list of rules that were ignored or broken, and of regulatory failure. The first mistake was to cram spares, tools and inflammable chemicals needed for the aircraft’s C-Check in Pokhara into the cargo hold flouting its own ground handling procedures.&nbsp; There was no check-in of passengers, some of whom were not even employees – even though regulations say only flight and maintenance crew should be on board a maintenance positioning flight. Many brought their own luggage into the plane and stored it unsecured in the cabin. There was no flight attendant to give a safety briefing to passengers. The load and trim charts given to the flight crew were rough estimates, and the total takeoff weight of the plane was 18,300kg plus or minus 200 kg. That would still have been all right, but there was a glaring mistake in the speedchart Saurya pilots were using to calculate the minimum takeoff speed (known as VR), and it had been wrong ever since the 21-year-old aircraft entered service with the airline in 2017. FAULTY DATA&nbsp; The Commission probed Flight Data Recorder inputs from previous takeoffs of the Canadian-built CRJ200-LR in 2023-2024 and found that the undetected error in the speedchart had caused the plane to pitch up at an abnormal rotation rate at least 18 times on previous takeoffs.&nbsp; Any rotation rate more than 3°/sec is regarded as unusual. But on at least two occasions, this aircraft with tail number 9N-AME had rotation rates of 5.8°/sec and 5.5°/sec, the second one was when the pilot who survived was flying in March 2024.&nbsp; On this particular day, the plane’s rotation rate was 6.5°/sec, causing it to go into a deep stall soon after takeoff, the Commission report said. Essentially, the plane was not flying fast enough down the runway to take off safely.&nbsp; It is not yet clear whether excess weight, unsecured luggage, wrong centre of gravity were also factors, but relying on a faulty speedchart for the given takeoff weight, the captain flying pulled back on the yoke before the plane had reached takeoff speed and at a pitch angle that was too steep. The investigation report says the plane then went into a deep stall and started banking right with the stick shaking. At this point, the flight officer on the right hand seat is heard on the cockpit voice recorder saying: “Whoa, whoa, whoa. Sir, Sir, Sir…” It then banked left before the pilot flying turned the plane sharply to the right again in an evasive action to avoid the parking aprons of the international and domestic terminals. Had he not done so, there would have been a disaster of a much greater magnitude at Kathmandu airport that day. The plane scraped the runway with its right wingtip, collided with a container having helicopter spare parts, and plunged into a gully east of the runway, exploding in a fireball. The investigation also noted that the impact forces seemed to be survivable for some occupants. The fire trucks took unnecessarily long to reach the site even though it was inside the airport perimeter. The absence of an ICAO-standard runway strip, inadequate rescue drills, lack of training, and a blocked emergency service gate leading to the crash site were cited as other factors. &nbsp;&nbsp; <h2>Timestamp of a Disaster</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725.jpg" data-media-id="editor_0" data-image-id="20250731110724_39cdd04693994ce6e55a5b302905c0fa4884fe85bed21ff0779bb1439f3a5725" data-rendition-name="original" width="778" height="826" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:10:34 - The Saurya Airlines CRJ200 on the takeoff roll from runway 02. It had a takeoff weight of about 18,300kg, but the pilot’s speedcard had a previously undetected mistake about the minimum takeoff speed. 11:10:55 -The plane with tail number 9N-AME goes into deep stall soon after takeoff because it does not have enough speed to lift its weight. The plane also has an abnormally steep nose-up attitude.&nbsp; 11:11:03 - Without enough speed to generate lift, the plane banks right, then left and right again in CCTV photos taken from the domestic apron (below). If it had not banked right, it could have hit the aprons and terminal buildings. Seen parked is Saurya’s other CRJ200 with tail number 9N-ANM.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd.jpg" data-media-id="editor_1" data-image-id="20250731110732_608132f7225c649125cca2691dd6a6bf930984c5b359e888d7ad9e5eacce3afd" data-rendition-name="original" width="770" height="555" loading="lazy" alt="Flouting rules caused Saurya tragedy NT"> </figure>  11:11:08 - The plane scrapes the runway with its right wingtip, and falls into the gully. The captain is thrown off the left side of the cockpit and survives. 11:11:15: Plane explodes in a fireball inside the airport perimeter. Firefighters take time to reach the site because of lack of access road and a blocked gate. Read the full investigation report <a href="https://www.tourism.gov.np/files/9N-AME%20AIC%20Final%20Report.pdf">here</a>.

Flouting rules caused Saurya tragedy

Two weeks ago, Prime Minister KP Sharma Oli announced jubilantly on social media that Nepal had achieved a historic annual growth of 81.8% in exports. He was right. Nepal’s trade did take a great leap forward compared to last year. But the dramatic rise was mainly due to processed soya bean oil.&nbsp; However, Nepal does not produce the edible oil it exports. In fact, the soya and palm oil that make up 44% of total exports are imported from Southeast Asia and South America, and simply re-exported, mostly to India.&nbsp; Under the SAFTA (South Asian Free Trade Area) Agreement, Nepal can export products to India duty-free if it has at least 30% value-added. Nepal’s traders have taken advantage of SAFTA even though the edible oils they export do not reach that value addition threshold. “The 30% value addition requirement is often only on paper,” says former commerce secretary Purushottam Ojha. “It is clear that simply packaging edible oils in Nepal does not fulfil the terms of the trade agreement.” Prime Minister Oli is aware of this, and even called Nepal’s export figures “fake” at an earlier event. The government is relying on other iffy figures to suggest that Nepal’s economy is strong and getting stronger. For example, the value of imports rose by 13.25% in 2024-25 compared to the previous fiscal year.&nbsp; Some of it was due to a jump in electric vehicle imports worth Rs 31.76 billion, but mostly it was because more wholesale soya oil was imported to be re-packaged and sold in India. The very fact that the government boasts about increased imports is an indication of how much it relies on taxing them for revenue. Touting such trade figures cannot be the basis to claim an economic rebound.&nbsp; “A jump in the value of imports can be interpreted as an increase in purchasing power, but it is not evidence of a stronger economy,” says economist Keshav Acharya. “Even though imports have increased, Nepal's domestic production and productive capacity have not improved.” Nepal Rastra Bank's semi-annual economic activity study report shows that industrial production was down in the first six months of the last fiscal year. This despite an increase in the number of new industries registered and investment commitments. Out of the Rs70.2 billion proposed foreign investment, Nepal received only Rs17.9 billion last year.&nbsp; Meanwhile, the rate of capital formation was limited to 24% last year, which is lower than the year before, suggesting that new investment, job creation and economic expansion all declined. If domestic production does not improve in relation to this year’s inflated trade figures, the outflow will put pressure on foreign exchange reserves like it did three years ago. At that time, Nepal borrowed from the IMF under its Extended Credit Facility Program to kickstart the economy.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f.jpg" data-media-id="editor_0" data-image-id="2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f" data-rendition-name="original" width="1633" height="723" loading="lazy" alt="Nepal's bubble economy NT"> <figcaption>Source: NEPAL RASTRA BANK</figcaption> </figure>  The macroeconomy is on firm footing with foreign exchange reserves at a comfortable Rs2,520 billion in May, up 23% from last year. This was largely due to remittances, and partly due to a falling NPR exchange rate. Real estate transactions and the stock market index have also been climbing as a result of government policies to revive the sector.&nbsp; However, former executive director of Nepal Rastra Bank Nar Bahadur Thapa cautions: “This is not organic growth, it is the result of deliberate policy decisions to relax rules on real estate and stock markets transactions.” In reality, the sharp rise in land prices have increased the cost of production, and excessive monetisation of the real estate has become the main source of Nepal’s economic woes. The central bank has announced a slew of new policies, shifting the terms of loan repayment for industrialists and entrepreneurs, reducing interest rates, and injecting more working capital — all designed to inject adrenaline into the real estate and stock market sectors.&nbsp; When he was governor, Mahaprasad Adhikari made several financial reforms during the latter half of his tenure to stimulate the economy, including tightening credit flow.&nbsp; By the last fiscal year, additional financial reforms had resulted in a credit expansion rate of around 8%. As the pace of credit expansion slows, real estate prices have started to fall. This is actually beneficial to the economy, because it lays the foundation for improvements in land-related entrepreneurship, production, and the construction sector. Just because real estate and the stock market transactions increase, it does not indicate an economic turnaround — especially when manufacturing and productive sector continues to languish.&nbsp; “It is foolish to believe that real estate and the stock market have magically revived our economy. Agriculture employs more than half of the population, but it is in decline. Investment in the productive sector has not increased, and job creation has not increased.” Two years ago, Nepal’s industrialists, business leaders, and political leadership predicted a recession amidst a sluggish business, declining market demand, large-scale job loss, and a shrinking real estate and share market.&nbsp; Still, the economy grew by 3.36% in fiscal year 2023/24. In fact, Nepal’s economy has grown nominally over the last two decades even when all sectors of the economy are in decline.&nbsp; Says Keshav Acharya: “The growth in trade, real estate, and the stock market are bubbles. The real economy remains stagnant.”

Nepal’s bubble economy

French citizen Louis arrived in Nepal for the first time earlier this year, planning to <a href="https://nepalitimes.com/banner/the-abcs-of-a-winter-trek-in-nepal">trek the Annapurna Circuit </a>before heading down to Bardia to hopefully catch a glimpse of some<a href="https://nepalitimes.com/news/nepal-counting-its-tigers"> tigers</a>. Before he began his journey from Besisahar, Louis (who only revealed his first name) had imagined breathing crisp mountain air, and following the melodious gurgle of the Marsyangdi.&nbsp; Instead, he had to breathe fumes and dust all the way to Chame. Louis says he masked his face with a handkerchief: “It was not what I expected, this is not right.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080304080_f03fce1527cf8a63178e4e82589a1a7096c8cfa28893ca4a5f7fe82d91a6e38a.jpg" data-media-id="editor_2" data-image-id="2025080304080_f03fce1527cf8a63178e4e82589a1a7096c8cfa28893ca4a5f7fe82d91a6e38a" data-rendition-name="original" width="2419" height="1814" loading="lazy" alt="Manang trails NT 1"> </figure>  Many other trekkers are similarly disappointed as roads have been built along what used to be <a href="https://nepalitimes.com/banner/a-walk-back-in-time-chandragiri-hatiban">walking trails</a>. Manang and Humla are the last remote regions in the Himalaya to be connected to the national road network. &nbsp;Construction of the 87km Besisahar-Manang road began in 1994, but was stalled during <a href="https://nepalitimes.com/news/14-years-after-conflict-no-closure-in-nepal">the Maoist conflic</a>t, and finally finished in 2012.&nbsp; Most of it has not yet been blacktopped, and sections have been carved out of vertical cliff faces, making them treacherous. But it has allowed road access to Manang, a journey that previously took a week on foot.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080304084_32b3ca875a0df9f1dd42dbe915e6f6a2cd4f2e53f1cf2d3ee5cbdb3435905000.jpg" data-media-id="editor_5" data-image-id="2025080304084_32b3ca875a0df9f1dd42dbe915e6f6a2cd4f2e53f1cf2d3ee5cbdb3435905000" data-rendition-name="original" width="2400" height="1505" loading="lazy" alt="Manang trails NT 1"> </figure>  While the <a href="https://nepalitimes.com/opinion/the-road-out-of-nepal">road has improved access</a>, it has impacted on<a href="https://nepalitimes.com/here-now/trekking-in-the-time-of-climate-change"> trekking tourism </a>— the mainstay of Manang’s economy. The number of tourists visiting the scenic valley behind the Annapurnas grew from 21,245 in 2023 to 30,866 in 2024. The Annapurna Circuit is known for unique sights like <a href="https://archive.nepalitimes.com/news.php?id=9194">Tilicho</a>, one of the highest lakes in the world, the Thorong La pass that connects Manang to Mustang, and the valley’s own rich cultural heritage. Thorong La at 5,416m is the highest hiking pass in the world, and was used by locals for trade with Mustang before it became a <a href="https://nepalitimes.com/opinion/comment/lift-restrictions-on-upper-mustang">popular trekking route</a>. &nbsp; “For guests, the excitement of reaching Thorong La is now overshadowed by their disappointment of having to journey through dusty roads to get there,” says Manang lodge-owner Ongma Gurung. “That is the complaint we get the most.” <a href="https://nepalitimes.com/banner/tourism-that-treads-lightly-on-the-land">Local tourism </a>operators are trying to get the government to build alternative foot trails. But there have been delays due to a lack of budget.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080304084_c5f76e398182785bb17846a148e3ca89de5687b4623580f8e2d725a7a287edfa.jpg" data-media-id="editor_11" data-image-id="2025080304084_c5f76e398182785bb17846a148e3ca89de5687b4623580f8e2d725a7a287edfa" data-rendition-name="original" width="2419" height="1762" loading="lazy" alt="Manang trails"> </figure>  The Naso Rural Municipality has identified other routes along the Annapurna Circuit in Chyamche, Tal, and Khotro so trekkers can bypass heavy vehicles involved in the construction of the Manang-Marsyangdi Hydropower Project. “But the local government cannot do everything,” admits the chair Dhan Bahadur Gurung. “And for leaders in Kathmandu, Manang is out of sight and out of mind.” Munindra Jung Gurung represents Manang in the Gandaki Provincial Assembly, and says he has raised the issue in <a href="https://nepalitimes.com/news/pokhara-s-tourism-woes">Pokhara</a>. He is hopeful there will be a hearing. To be sure, the road is not all bad news. Locals benefit, the number of visitors has grown, and trekkers can now also save time and use it to explore <a href="https://archive.nepalitimes.com/news.php?id=5960">side valleys in Manang</a>, visiting the villages like Nar and Phu. Annapurna Conservation Area (ACA) chief Rabin Kadariya concedes that the road to Upper Manang was crucial to connect the remote region with the rest of Nepal, but adds: “We have built an alternative trail connecting Talgaun, and we will consult local communities about their priorities on other hiking trails.”&nbsp;