<img width="1070" height="830" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121140/636a40e99c7e80680e04a64ajpeg.jpg" alt=""/>Whether Nepal was ruled by a monarchy-military dictatorship, an elected coalition or a communist regime, its leaders have often tried and ultimately failed to suppress the press.After the <a href="http://archive.nepalitimes.com/news.php?id=1175#.XNvLDOUza70" target="_blank" rel="noopener">royal-military coup of 1 February 2005</a>, the Royal Nepal Army invaded newsrooms. At Nepali Times, two soldiers in military fatigues peered at the monitor, forcing the designer to expunge columns and cartoons. Kathmandu-based papers, including this one, went to press with white holes — so readers got the message that the edition had been censored. We wrote <a href="http://archive.nepalitimes.com/news.php?id=1222#.XNvLI-Uza70" target="_blank" rel="noopener">metaphorical editorials</a> comparing democracy to trees, and played cat-and-mouse with the authorities. Radio stations were told to broadcast only music, no news or current affairs. Some news readers got so fed up they started singing the news, broadcasting bulletins in duets. In the districts, radio stations were closed down, journalists jailed, some tortured and forced into solitary confinement for a year.After the ceasefire and the 2008 elections, in which the Maoist party won a landslide, many breathed a sigh of relief. The war was over, and it looked like our freedoms had been restored. We were mistaken. <a href="http://archive.nepalitimes.com/news.php?id=15506#.XNu7ZOUza71" target="_blank" rel="noopener">The ruling Communists</a> retaliated against critical content in the media <a href="http://archive.nepalitimes.com/news.php?id=15507#.XNu7EeUza71" target="_blank" rel="noopener">throughout 2008-9</a> by burning newspaper distribution vans, <a href="http://archive.nepalitimes.com/news.php?id=15513#.XNu7OOUza71">instigating militant unions</a> or <a href="https://www.nepalitimes.com/opinion/creeping-control-over-the-press-in-nepal/" target="_blank" rel="noopener">vandalising and assaulting journalists in their newsrooms</a>.Ever since the united Nepal Communist Party came to power, it has been taking incremental steps to gag the media. Not with a sudden, swift crackdown but <a href="https://www.nepalitimes.com/banner/gagging-the-press-in-installments/" target="_blank" rel="noopener">softly, in instalments</a>. Like frogs in a pot of water above a fire, we are not supposed to notice that the water is starting to boil until it is too late. Just a short recap: <ul><li>In August 2018, Nepal’s new Penal Code criminalised photography (Section 295), slapped on heavy fines and jail terms for recording conversations (Section 293) and announced strict punishment for sending, receiving or using online data (Section 298). It banned ridiculing of government officials by <a href="https://www.nepalitimes.com/from-the-nepali-press/press-freedom-must-be-defended-by-its-maximum-application/">Photoshop-ing</a> their images.   </li><li>A bill in Parliament sought to <a href="https://www.nepalitimes.com/banner/suppressed/" target="_blank" rel="noopener">prohibit journalists from publishing personal information of public officials</a>, ostensibly to protect their privacy.</li><li>Editors were summoned to the Press Council for intimidating interrogations.</li><li>Three journalists in the English language service of the state news agency RSS are being investigated for putting out a story that the Dalai Lama was out of hospital in New Delhi. Their crime: transmitting the item while President Bidya Devi Bhandari was on a visit to Beijing.</li><li>Last week, the Ministry of Communication and Information Technology slipped a draconian Media Council Bill into Parliament with excessive secrecy. It stipulates <a href="https://kathmandupost.ekantipur.com/news/2019-05-13/the-media-council-bill-further-endangers-press-freedom.html" target="_blank" rel="noopener">hefty fines on journalists</a>.</li></ul>Taken together, this is a creeping coup. Nepal seems to be following the roadmap of elected despots worldwide who are cracking down on the free press. Our leaders appear to have got hold of the manual from the one-party states they have been visiting of late.The <a href="https://www.onlinekhabar.com/2019/05/765299?utm_source=Facebook&amp;utm_medium=TwitterPost" target="_blank" rel="noopener">Media Council Bill</a> was introduced in Parliament last week without stakeholder consultation as is customary, and <a href="https://www.kantipurdaily.com/opinion/2019/05/12/155762804094661037.html" target="_blank" rel="noopener">smacks of ill intention</a>. Members of the Council can now be appointed or sacked at will by the Ministry of Communication. Publishers, editors or reporters can be fined up to Rs1 million for tarnishing someone’s reputation.  To be sure, sections of Nepal’s media can also be  faulted for yellow journalism, character assassination, extortion, corruption and politically-sponsored content. The media cannot be an island of integrity when the nation is afflicted by a pandemic of graft.  Members of the media-industrial complex have at times behaved like power brokers.Respondents in a recent <a href="https://www.nepalitimes.com/here-now/survey-is-wakeup-call-for-nepal-government/">nationwide public opinion poll</a> gave low marks to the media: 57% said they did not trust journalists much. The outrage over a <a href="https://www.youtube.com/watch?v=y3l7vEIvWxU" target="_blank" rel="noopener">live studio interview</a> during which Deputy Prime Minister Upendra Yadav <a href="https://www.nepalitimes.com/from-the-nepali-press/the-minister-and-the-anchor/" target="_blank" rel="noopener">walked out on the anchor</a> showed that the public sees journalists as getting too big for their boots.One reason the media could have fallen in the public’s esteem is that most citizens do not make a distinction between the mainstream press and unfiltered content on social media. But the government cannot use this as an <a href="https://www.nepalitimes.com/banner/long-shadows/" target="_blank" rel="noopener">excuse to gag the media</a>. Press freedom is a vital part of the check and balance in a democracy, and the Communist government must realise that one day when it is back in the opposition it will need the very press that it is trying to undermine now.But if it goes ahead and passes the Media Council Bill, this may be the last time we will be free to say in this space why it goes against the letter and spirit of our Constitution.10 years ago this weekNepali Times <a href="http://archive.nepalitimes.com/issue/451" target="_blank" rel="noopener">edition #451</a> of 15- 21 May 2009 had an <a href="http://archive.nepalitimes.com/news.php?id=15941#.XN1DnBQzaUk" target="_blank" rel="noopener">editorial titled ‘There they go again’</a> that could have been written about current Nepali politics. Excerpt:Countries in fragile political transition have to be governed differently than stable democracies. Transitional politics require a unity of purpose. It calls for political parties to never lose sight of the goal: preserving the peace, writing the Constitution and keeping citizens content.Unfortunately, consensus has become the first casualty in the conflict of interest between the Maoists and the rest. Chairman Dahal erroneously thought that being the biggest party in the CA gave him the right to decide things on his own. The Maoists are now following the example that the NC set. The controversy over unilateral dismissal and subsequent reinstatement of the army chief was a consequence rather than cause of the crisis of confidence between the main political parties.Our politicians, too, have forgotten why they got the people’s mandate. It wasn’t to bicker endlessly in Kathmandu over power.<a href="http://archive.nepalitimes.com/issue/451"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121140/636a40ec9c7e80680e04a64bjpeg.jpg" alt="" width="682" height="1084"></a>

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A creeping coup

<figure><img width="1400" height="1031" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107141112/636904bc9c7e80680e037d3djpeg.jpg" alt=""/><figcaption>UNDERPASS: It looks like you forgot that there is now a new law that forbids disclosure of the private information of public officials. Vatsyayan in Kantipur, 25 August</figcaption></figure>It has only been two weeks since Nepal’s new Penal Code criminalised photography (Section 295), slapped heavy fines and jail terms for recording conversations (Section 293), and announced strict punishment for sending, receiving or using online data (Section 298). Another privacy-related bill in Parliament will prohibit people from publishing personal information of public officials. But it has already had a <a href="https://www.nepalitimes.com/banner/suppressed/" target="_blank" rel="noopener">chilling effect across the Nepali media</a>.A person who ridiculed the prime minister on Facebook was tracked down and arrested for photo-manipulating the prime minister's photo, which violates Section 295 of the Code. Editors of Nagarik, Annapurna Post and Kantipur were summoned to the Press Council for interrogation.Photojournalist Usha Titikshu was taking a photo of a damaged CCTV camera at an airport recently, when she was stopped. “Don’t you know the new rules about not taking photos?” she was warned.If enacted earlier, the new laws would have forced editors to spike their recent investigative reports on the Chief Justice’s doctored certificates, photos showing collusion between top politicians and medical college owners, and stories of corruption in high places.The Federation of Nepalese Journalists last week issued its Godavari Declaration demanding that the provisions be immediately rescinded. The International Federation of Journalists (IFJ), The Committee to Protect Journalists (CPJ), Reporters without Borders (RSF) and others <a href="https://www.nepalitimes.com/latest/amend-criminal-code-rsf/" target="_blank" rel="noopener">all condemned the move</a>, demanding that Nepal adhere to the international standards and principles of freedom of expression.Although the constitution guarantees press freedom as an inviolable right, the laws try to enforce constitutional provisions protecting a citizen’s right to privacy more strictly, even extending it to public figures.Read also: <a href="https://www.nepalitimes.com/banner/strongman-rule/" target="_blank" rel="noopener">Strongman rule</a>, Om Astha RaiPress adviser to the prime minister and former editor Kundan Aryal admits that a free press is important, but says the Nepali media has failed to self-regulate."Journalists do not rein themselves in, they feel free to make derogatory comments, especially about women. It is necessary to regulate the press,” he told Nepali Times. Such talk has already had a dampening effect, with editors and reporters now more wary of publishing information in the public interest. The fear is that the laws are so broadly defined and open to interpretation, anyone can be hauled over for anything.The crackdowns started coming thick and fast after the Nepal Communist Party government was elected to power in January: it consolidated the surveillance arms of the state in the PMO, proposed restrictions on advocacy through the National Integrity Policy, and banned popular areas for protest. Photographer Chandra Ale of Onlinekhabar recently faced questions when he was at Kalimati vegetable market where traders had locked up government inspectors. “A person asked me if I had permission to take photos. He followed me, and forced me to delete my pictures,” Ale relates.Photojournalist Usha Titikshu thinks there is a systematic plan to gag the media. “Threats to journalists are more common across South Asia, and we have not connected the dots to see that the same is happening in Nepal,” says Titikshu, citing the rape and deaths of journalists in India and <a href="https://www.nepalitimes.com/banner/the-death-of-democracy/" target="_blank" rel="noopener">the arrest of noted Bangladeshi photographer Shahidul Alam</a> who is being mistreated in jail. “We see our own government moving towards similar intolerance in Nepal.”Ujjwal Acharya, South Asia coordinator of IFJ and digital media watcher says: “Today one thinks twice before posting anything on social media. By the looks of it, the government intends to curtail all kinds of expression, especially investigative journalism.”Says Nagarik editor Gunaraj Luintel who answered an unprecedented summon from the Press Council: “It was overstepping its mandate, even asking me to explain a mistake in print to the parties involved. The council is only supposed to promote ethical journalism, but it has become an arm of the government. The aim is to increase censorship in a planned way.”Narayan Wagle, editor of Kantipur, was also summoned by the Press Council for the first time in his 30-year career, and says the it has outlived its usefulness.“The practice in democratic countries is that the government does not monitor the press. The press monitors itself through a code of ethics. But in Nepal, a new law about the Press Council is in the offing, which proves the government wants to further tighten the noose around the press.”Bikas Karki, president of Photo Journalists’ Club, agrees that the government’s real intention is control: “The Constitution has become like the elephant’s tusks, it is there just for show. The laws are the real teeth inside, which bite.”Nepal has gone through censorship before. The Panchayat system banned political parties, and the royal palace strictly controlled the press. In 2005, King Gyanendra tried to take the country back to those dark days. Some say the new Code is even worse than the Panchayat.“There were threats then, but they were verbal or even unspoken,” recalls photojournalist Gopal Chitrakar, who started out at Gorkhapatra during the Pancahayat. “I don’t remember such draconian measures. These new rules are in writing, they are backed by the law. That gives them legitimacy which is more dangerous.” Kundan Aryal reassured us that the Code and laws can always be amended. But this does not convince journalists who say the laws that restrict media freedom are inherently anti-democratic, unconstitutional and remove its check-and-balance function. Laws that are broadly defined are even more dangerous, and can be a path to authoritarianism.Read also: <a href="http://archive.nepalitimes.com/article/nation/varying-press-freedom-in-burma,1261" target="_blank" rel="noopener">Too little, or too much freedom</a>, Kunda Dixit <h4>The right to say the emperor is naked</h4> Satire flourishes best and is most prolific when there are controls on free speech, and Haribansa Acharya should know. He says he performed his most fulfilling and creative skits during the Panchayat.“Saying ‘17 Sal’ out loud was banned, since it was the year of King Mahendra’s coup. So we got away by saying ‘the year between 16 and 18’,” remembers Acharya. “We also called Prime Minister Surya Bahadur Thapa ‘Gham’ instead of Surya. We played cat and mouse with the censors, and it was more fun and creative. Today’s satire seems to lack that art.”Satire, in fact, seems less necessary when there is full freedom, but it is a lifeline during restrictive times. Even during the absolutist Rana and Shah reigns, the royals knew citizens needed to let off a little steam. So, they allowed one day in a year on Gai Jatra (on 27 August this year)when people had freedom to say anything. <figure><img width="1200" height="841" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107141112/636904bf9c7e80680e037d3ejpeg.jpg" alt=""><figcaption> </figcaption></figure>Culture expert Tejeswor Babu Gongah remembers Gai Jatra revelers burning an effigy of the Panchayat, an act that would have people locked up on any other day of the year."Humour is one space where you can raise issues that you cannot elsewhere, therein lies its power to question authority,” he adds.Some have noted that this year’s Gai Jatra seemed subdued, with fewer shows. On social media, there were comments that satirists had already started self-censoring because of the new Criminal Code.Satirist Manoj Gajurel, who has made a career out of lampooning kings, prime ministers and guerrilla commanders, says: “Humour has a social responsibility to carry the people’s message to authority when it refuses to listen to direct communication.”However, an elected government now wants to take away that right of Nepalis to poke fun at power. Section 306 of the Code specifically prohibits ‘satire’ and categorises it under libel, and Section 295 prohibits caricatures.“I feel a great sense of dread,” admits cartoonist Durga Baral, who went underground during the Panchayat but continued to produce cartoons under the pen-name Batsyayan, despite threats."Freedom of expression is our basic right, and if we are not free to speak out, it all gets bottled up inside.”Nepali cartoonists are pushing back. Last week, Rabin Sayami drew a savage cartoon that tore the government to shreds over its callousness in not investigating the Kanchanpur rape case, and killing a protester. It depicted a smiling Pushpa Kamal Dahal and a smug Prime Minister Oli with a smoking gun in his hand (above). The rapist holds a bloody knife, and has his back turned. Two photos of the rape victim and a dead protester hang on the wall.Sayami was warned by friends to be careful, and that he might be sent to jail. He says the cartoon was a test: “To see if we are still a democracy.”Read Also: <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/saparu-the-festival-of-death-and-rebirt,2543" target="_blank" rel="noopener">Saparu</a>, Sonia Awale<a href="http://archive.nepalitimes.com/news.php?id=11225#.W4fAI84zbIU" target="_blank" rel="noopener">Festival of death and satire</a>, Desmond DoigCode wordsWhile Nepal's journalistic community is up in the arms about the latest Criminal Code, lawyer Madhav Basnet says it is not as worrying as perceived, for the following reasons: <ul><li>The 1990 Constitution was the first one to clearly mention the right to privacy.</li><li>Nepal has a long history of laws against slander and libel, even in Jang Bahadur's Muluki Ain of 1853.</li><li>The Criminal Code does not specifically mention any profession like writers, journalists or photojournalists.</li><li>The conduct of journalists is covered by other laws related to the media, which remain unchanged. The Criminal Code mentions that it will not supersede laws relating to specific professions.</li><li>With social media, it is not just journalists and photographers who take photos, collect and disseminate information, but everyone. The Code is only prescribing limits for them.</li><li>The law, however, does apply to journalists if they are not transmitting through the mass media.</li><li>The Criminal Code is not the guarantor of freedom of expression, the Constitution is. That freedom is not without its limits, and the limits are also mentioned in the Constitution. However, nothing can take away that freedom. And if any law seems to infringe upon it, then there are Constitutional remedies.</li></ul>Read also: <a href="https://www.nepalitimes.com/opinion/nepal-has-press-freedom-but-no-freedom-after-press/" target="_blank" rel="noopener">Nepal has press freedom, but no freedom after press</a>, Shashank Shrestha

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Gagging the press in installments

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

It cannot be a coincidence that after pushing bills to constrict freedom of expression and allow greater <a href="https://nepalitimes.com/news/security-or-espionage">surveillance of citizens</a>, Nepal’s government is now tightening controls on civil society.
In a <a href="https://nepalitimes.com/opinion/guest-editorial/command-and-control">series of recent moves</a> journalists have been sued for contempt of court, imprisoned for YouTube videos, or ordered by courts to desist from investigating corrupt officials.
An amendment to the Print and Publications Act that would hand the power to shut online media to the Chief District Officer (CDO). Another draft Bill would allow a political appointee to head a new Media Council with the power to revoke a journalist’s license. The draft counter-intelligence Bill would let random officials to arbitrarily tap phones, read emails and trail citizens.
Now comes yet another draft Bill that would replace the <a href="https://archive.nepalitimes.com/news.php?id=10675">Social Welfare Council (SWC)</a> with direct government control over registration, regulation, and management of non-governmental organisations, nonprofits and charities. There are more than 54,000 NGOs, 200 international NGOs registered with the SWC.
The draft makes civil society organisations needlessly jump through hoops to carry out work that complements the government in the social sector. Critics say the Bill was drafted without any consultation with <a href="https://nepalitimes.com/opinion/comment/nepal-s-rights-groups-must-step-up-4r4z6ck4">civic groups</a>.
“This Bill’s content is questionable whether it intends to allow for civil society organisations in Nepal a free space to operate,” concludes Dr SP Kalaunee, Country Representative of BlinkNow Foundation and Chair of the Association of International NGOs in Nepal (AIN). “The draft seems oriented towards controling rather than facilitating the work of civil society organisations.”
The Bill will be open for feedback from the public, and integrates the National Directives Act (1961), Association Registration Act (1977), and the Social Welfare Act (1992) and proposes dissolving the SWC and replacing it with a new Social Welfare Department under the Ministry of Women, Children and Senior Citizens.
Non-government groups will now be required to get approval from the Registrar Office, the CDO or the provincial government depending on their area of operation. Those working across provinces will have to get permission from the federal government. &nbsp;
The government says the Bill is intended to vet organisations to see if they are engaged in espionage, violate national security, assist a foreign state, commit treason, cause strife between federal units, or incite communal violence.&nbsp;
CSOs working in Nepal have long called for legislation to better facilitate their work, minimise administrative and bureaucratic red tape which have posed operational challenges. But they are opposed to such drastic control.&nbsp;
Read also: <a href="https://nepalitimes.com/banner/the-crow-and-the-scarecrow">The crow and the scarecrow</a>, Om Astha Rai
The NGO Federation of Nepal also issued a statement this week calling the Bill ‘retrograde and cumbersome’. It added: ‘Most of its provisions are intended to further constrain and control civil society organisations rather than facilitate and strengthen them, and reduce the role of citizen participation … it is an attack on our civil liberties, inclusivity, and transparency, and curtails our <a href="https://archive.nepalitimes.com/news.php?id=5156">democratic values and constitutional rights</a>.’ &nbsp;
<a href="about:blank">Nepal’s graduation</a> from least-developed country status next year may mean less aid for Nepal, and higher interest rates on loans from multilateral creditors. The <a href="https://nepalitimes.com/news/how-usaid-cut-affects-nepal">closure of USAID </a>and reduction in bilateral grants means the work of INGOs will be even more vital – especially to meet its <a href="https://nepalitimes.com/here-now/target-2030-for-maternal-and-newborn-health">SDG targets by 2030</a>.&nbsp;
“We are competing with other countries at a time when the global aid environment is shrinking, so the support we receive is directly dependent on a conducive environment for INGOs to operate and function,” says Kalaunee. “INGOs follow regulations of the nations they operate in, they will not protest or wait around for governments to change their minds or policies.”
Social safety net
Since 1977, the work of non-governmental actors in Nepal has been regulated by the Social Service National Coordination Council (SSNCC) chaired by Queen Aishwarya.
After the <a href="https://nepalitimes.com/banner/one-moment-30-years-ago-today">1990 People’s Movement</a>, King Birendra set up the Social Welfare Council (SWC) as an autonomous body in 1992 through the Social Welfare Act. But since then the SWC has been dogged by controversy and allegations of corruption and extortion.
In 2018, the Commission for the Investigation of Abuse of Authority (CIAA) filed a Rs315 million corruption case against 14 individuals, including the Minister of Women, Children and Social Welfare and SWC chair Badri Prasad Neupane and other officials for violating public procurement laws to rent out three hectares of its property around Bhrikuti Mandap.
Civil society groups have for years called for reforms in the SWC, and a report was drawn up to restructure it before this Bill proposed its dissolution. INGOs in particular will now have to go through the Social Welfare Department and multiple ministries for permissions.
A particularly objectionable provision in the draft stipulates that NGOs must have a Board of Director made up almost entirely of secretaries of various ministries. The NGO Federation has urged the government to take a civil society-friendly approach and not tangle its work in red tape and control. It says the government has no option but to revise the bill in its current form.
“Civil society organisations need an open space to operate, and an autonomous body to oversee them,” says Kalaunee. “Non-government organisations support in the areas prioritised by the government but by definition they cannot be a part of government.”

Big, beautiful Bills

An average Nepali could live 3.3 years longer if air pollution is reduced to meet the World Health Organization (WHO) guideline, according the annual <a href="https://aqli.epic.uchicago.edu/">Air Quality Life Index</a> 2025 published this week. The annual average concentration of tiny suspended particles in the air (PM2.5) in Nepal in 2023 was 38.3 μg/m3, nearly eight times the WHO standard, and 10% higher than 2022. Thirty years ago, air pollution in Nepal was half the current levels. WHO says particulate concentration above 5μg/m3 &nbsp;is<a href="https://nepalitimes.com/here-now/what-is-invisible-is-more-dangerous"> hazardous to health</a>.&nbsp; The most <a href="https://nepalitimes.com/banner/why-is-the-air-in-bhaktapur-so-bad">polluted parts of Nepal</a> are along the Indian border in Rutahat, Mahottari, Dhanusha, Parsa and Bara districts in Madhes Povince where average life expectancy is reduced by as much as 5.3 years.&nbsp; People in Sarlahi, Siraha, Saptari, Morang, Sunsari, Rupandehi and Jhapa are also dying at least 4 years earlier. The Air Quality Index 2025 report which is published annually by the Energy Policy Institute at the University of Chicago, says the figure is relatively lower for Kathmandu and Lalitpur at 2.6 and 2.4 years. After the Madhes, Kosi and Lumbini Provinces are the most polluted — especially in towns along industrial corridors and near the border. Karnali Province was by far the cleanest, followed by Sudurpaschim. Read also: <a href="https://nepalitimes.com/here-now/epicentre-of-pollution">Epicentre of pollution</a>, Sonia Awale  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250828060856_136770cc84e114e8993af82e6a682c45d9458060e4ecf45f18e9f210673e1279.jpg" data-media-id="editor_4" data-image-id="20250828060856_136770cc84e114e8993af82e6a682c45d9458060e4ecf45f18e9f210673e1279" data-rendition-name="original" width="753" height="584" loading="lazy" alt="AQLI map"> <figcaption>Potential gain in life expectancy from permanently reducing PM2.5 from 2023 concentration to the WHO guideline.</figcaption> </figure>  Air pollution is now the leading external<a href="https://nepalitimes.com/editorial/cleaner-air-longer-lives-0z0okfeu"> threat to life expectancy in Nepal</a>, exceeding both tobacco and diet-related risks, which reduced average lifespans of Nepalis by 1.9 years and 1.3 years respectively. The Air Quality Management Action Plan for Kathmandu Valley introduced in 2017 had identified vehicular emissions, brick kilns, and construction as the most polluting. It adopted measures to strengthen air quality monitoring, develop emissions inventory, and conduct impact assessments. Other major sources of emissions in Nepal include <a href="https://nepalitimes.com/news/no-smoke-without-fire-p7vb9dcj">forest fires</a>, crop residue and garbage burning as well as transboundary pollution from India and Pakistan. The report says India is the world’s most polluted country with the particulate concentration in 2023 at 41 μg/m3, an average resident in India could live 3.5 years longer if pollution levels were brought down to meet the WHO guideline. Residents of New Delhi on average would live 8.2 years longer if they breathed clean air. South Asia has some of the world’s most polluted cities. On some winter days, Kathmandu records the worst air quality in the world. In 2023, PM2.5 concentrations in South Asia declined by 9.6% between 2021 and 2022 due to lockdowns during the peak of the Covid-19 pandemic. ‘After a dip in 2022, particulate pollution in South Asia increased by 2.8% in 2023 — though it remained 7% lower than in 2021,’ <a href="https://aqli.epic.uchicago.edu/report/annual-update-2025">states the report</a>. ‘In the region’s most polluted countries, particulate pollution’s impact on life expectancy is nearly twice that of childhood, and maternal malnutrition and more than five times that of unsafe water, sanitation and handwashing.’ Elsewhere, unprecedented wildfires caused particulate concentrations to rise to levels not seen since 2011 in the United States and since 1998 in Canada. China also registered a decline in air quality, an increase of 2.8% in particulate pollution in 2023 relative to 2022, the first in a decade since the start of its ‘War on Pollution’ in 2014.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250828060856_94860b929d0fb161220ad72ecb76fcd29ba8e306bd6b844485a4171dadb6bb47.jpg" data-media-id="editor_8" data-image-id="20250828060856_94860b929d0fb161220ad72ecb76fcd29ba8e306bd6b844485a4171dadb6bb47" data-rendition-name="original" width="754" height="501" loading="lazy" alt="AQLI line graph"> <figcaption>Annual average PM2.5 concentration in Nepal from 1998-2023.</figcaption> </figure>  Globally, the PM2.5 concentration in 2023 was 1.5% higher than in 2022, and nearly 5 times the WHO guideline. If global particulate pollution were permanently reduced to meet this guideline, an average person around the world would gain 1.9 years of life, adding 15.1 billion total life years to the <a href="https://nepalitimes.com/opinion/the-future-is-older">global population</a>, the report adds. ‘Particulate pollution remained the greatest external threat to human life expectancy in 2023, with <a href="https://nepalitimes.com/here-now/air-pollution-is-more-dangerous-than-smoking">its impact comparable to smoking</a> and surpassing other major health risks,’ the report says. ‘Its toll on life expectancy is more than 4 times that of alcohol use, 5 times that of transport injuries or unsafe water, sanitation, and handwashing, and more than 6 times that of HIV/AIDS.’ The report also highlights the need for open data, and says that accessible air quality information has translated into reduced particulate concentrations and gains in life expectancy in the United States, China, and Poland. Besides data, the report says, investment in monitoring and other air quality management infrastructure must be matched by political will, ambitious policies, capacity building, and sustained enforcement.

Warning: breathing is hazardous to health

This is the 72nd episode of Diaspora Diaries, a Nepali Times series in collaboration with Migration Lab providing a platform to share experiences of living, working and studying abroad. My father ran a store and that is where I spent all my time till Grade 6. Doing my homework. Serving customers. I then moved to my maternal grandparents’ house because I used to get along with my cousin who was a year older than me. We did everything together, and were best friends. We took turns studying: I was a night owl, and he was an early riser. Before I went to bed after studying all night, I woke him up. My mother was 44 when I was born, the same year my eldest brother got married. My sister-in-law becoming a part of our family was how my mother referenced my age. I liked making money, and was always a hustler. In Grade 7, I learnt to handle a tractor and helped my brother-in-law to plough, earning Rs10 a day. As I got better, he paid me more. By Grade 9, I was already making Rs500 per day, but had to slow down to prepare for my exams. From an early age I knew I did not want a 9-5 job. There just wasn’t enough money in it. I wanted to get into business, and compared my brother who worked in the post office and what businessmen made. It did not help that my brother was honest, and never took bribes. A friend and I made money selling cheap Chinese phones at a premium to our friends. We blasted music on the phones and pretended that we were giving them a discount. After SLC, I started teaching math and other subjects. I was soon a shareholder in the same school and in the evening I was involved in our family’s floriculture business, growing amaranth and marigold for garlands.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020844_1b54b999d67122a50c4c7e6204cc737bcc99bf2a68db6499a4566a7f61a880b4.jpg" data-media-id="editor_0" data-image-id="20250831020844_1b54b999d67122a50c4c7e6204cc737bcc99bf2a68db6499a4566a7f61a880b4" data-rendition-name="original" width="955" height="1314" loading="lazy" alt="Diaspora Diaries 72"> </figure>  It was then that a friend suggested we learn the Korean language. We could be earning significantly higher in Korea for similar efforts. I had no plans to go abroad but he convinced me. I did not know anything about Korea, and was scolded at the language institute when I asked someone to point Korea on the map.&nbsp; It was only there that I learnt you had to pass an exam for the Korean Employment Permit System (EPS), and pay for language classes. After a week, I decided it was not for me and dropped out. But my friend convinced me to give it one more try. I did not prepare much for the exam, and it was no surprise that I failed. But it was just by one mark, and people would pity me for failing “just by one mark”. It was a brand of failure. It hurt my ego. I had to turn things around by taking the exams seriously, and locked myself up to study hard.&nbsp; Even when we had visitors, my wife told them I was not home. If I was not in my room learning Korean, I would be with a group of ten of us test-takers comparing notes and practicing late into the night. The exam was difficult, but this time I passed, the only one in my group who did.&nbsp; As someone who never liked the idea of doing a job, I still had my doubts about going to Korea. It did not help that one of my acquaintances had returned a month after he had left, and he discouraged me from migrating given that I was already making good money in Nepal.&nbsp; But my wife suggested that I give it a shot since I had worked so hard for it. And if it really turned out not to be my cup of tea, I could always return. What did I have to lose, I thought, at least I would get to visit Korea. My job there was in an electrical company that made circuit boards. I worked all day, earned good money. In the evenings, I kept myself busy with my real estate business back in Nepal. I had learnt the tricks of the trade from fellow real estate agents back home, but at the time did not have the capital to invest.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020848_941e961e2045058f255ad89884b51faa7d2365c68236e5cbe573d63d769ac6c5.jpg" data-media-id="editor_1" data-image-id="20250831020848_941e961e2045058f255ad89884b51faa7d2365c68236e5cbe573d63d769ac6c5" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Diaspora Diaries 72"> </figure>  In Korea, it helped that I had salary records that allowed me to get loans from financial institutions both in Korea and in Nepal. Ultimately, I started earning more from my real estate deals in Nepal than from my job in Korea. This was all thanks to my ability to take loans because of the EPS scheme. My wife has been managing the flower business while I was away. My finances grew stronger over the eight years I was in Korea. I paid off the loans that I had borrowed to buy land. But real estate did not satisfy me entirely. I wondered: what is my brand? What will I be known for? What is my contribution to society? Real estate is for wealth, but that is about it. I needed to sell one piece of land and use the revenue to start a venture. I took classes in business, and returned to Nepal six months ago and got back to my family’s ancestral roots in floriculture. In Nepal too, I am continuing the entrepreneurship training I had started in Korea with the Bridge International. Such exposure helps us reflect on our business such as our branding, vision, and proactive aspects like the importance of strong recordkeeping.&nbsp; I am now working to upgrade and expand my floriculture business. With a friend who is still in Korea I am building a cooling room to increase the shelf-life of flowers and other produce and set up a market in my village where others can sell their produce. Floriculture is our primary business, but it is seasonal and earns good money only during festivals like Tihar.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250831020848_a008ffeba13896e6918f68ff6e687c8fe11140d86a96f1ec11690547f2bcd415.jpg" data-media-id="editor_2" data-image-id="20250831020848_a008ffeba13896e6918f68ff6e687c8fe11140d86a96f1ec11690547f2bcd415" data-rendition-name="original" width="1280" height="720" loading="lazy" alt="Diaspora Diaries 72"> </figure>  So, I grow tomatoes to ensure year-round earnings. I also am engaged in other businesses like real estate and online shopping. I work round the clock in Nepal — a strong work ethic is something I picked up in Korea.&nbsp; My Korean bosses would work alongside us, that motivated us. I work just as hard in Nepal as I did in Korea. People here often ask me why I am pushing myself so hard. But making garlands comes easy to me, it is work my forebears were involved in. My childhood memories are about plucking flowers with my sister. I have a comparative advantage in this work. It comes naturally to me, it is easy and I enjoy it. And sometimes, if there are too many garlands to make, I can multitask while holding meetings. My fingers just fly. I am good at this job, but my wife is even better and faster.&nbsp; When there is too much load, we can also outsource the work. To be known as the flower guy would be great personal branding. The मखमली guy. Or the सयपत्री guy. I decided to come home for just this with a one-way ticket. “अब पासा: जाँदैन ल्हासा!” &nbsp;

penal-code

A creeping coup

Gagging the press in installments

30 years after Baby Arun

Big, beautiful Bills

Warning: breathing is hazardous to health

The flower guy