Following the release of the report by the Parliamentary Special Investigation Committee on the cooperatives fraud, RSP member Shisir Khanal made a rather bizarre statement to the media.
While defending the alleged involvement of his boss Rabi Lamichhane and his tv venture partner G B Rai in diverting the savings of depositors of multiple cooperatives, he said: “G B Rai was already so rich, why would Rabiji investigate the source of his investment? Would you ask Binod Chaudhary where he got his money if he wanted to invest in your media?”&nbsp;
Khanal was a former RSP education minister and co-chair of the reputed Teach for Nepal. For someone who claims to have joined politics to reform Nepal’s education sector, this was woefully underwhelming.&nbsp;
Lamichhane is innocent until proven guilty by the courts. But there is no smoke without fire, and the man’s political career so far during several tenures as home minister has been, to put it politely, questionable.
Other RSP technocrats like economist Swarnim Wagle, IT entrepreneur Sumana Shrestha and physician Toshima Karki joined the party because they believed in nurturing an ethical political ecosystem in Nepal. We understand that they have to toe the party line, but they all say the committee gave Lamichhane a clean chit. Which it did not. &nbsp;
To be sure, there is evidence that the NC and UML connived in June to topple the Maoist-led coalition in which Lamichhane was home minister because his investigation into the fake refugee and Jhapa tea estate land scam were getting close to the top leaders of both parties.
Besides that, Nepal’s two biggest parties in the current coalition also want to prevent the RSP from getting too popular before the next elections in 2027. The RSP vs NC-UML prize fight therefore is looking like the pot calling the kettle black.&nbsp;
For the RSP’s own sake, and to bolster its original image of a new alternative party that stands for good governance, integrity and delivery, it needs to purge itself of a leader who is always neck deep in serial scandals.&nbsp;
Lamichhane is behaving exactly like the elderly alpha males of the other established parties that he was promising he was different from. We have seen all this before: a party leader who does not want to let go and expects all-out loyalty from cadres even when there are moral questions.
Communist parties believe in ‘democratic centralism’ and actively suppress criticism of their supreme leaders. But in Nepal it is SOP even in parties that have fought long and hard for democracy and pluralism to do so.
Those who dare criticise the Great Leader are sidelined, framed, or driven into oblivion. Party bosses consider their own colleagues as more of a threat to their power than those in an opposition party. Political parties have factions within factions.&nbsp;
All this is nothing new. But we had all hoped that for the country’s sake the RSP was different. That it would be more transparent and exercise more internal democracy, that policy would take precedence over politicking, discretion would prevail over discord, top leaders would make good governance the goal rather than personal gain.&nbsp;
The RSP cannot hope to be an alternative party, if singing hymns of a tainted Dear Leader is the condition for membership. Lamichhane’s ex-comrade Mukul Dhakal has quit, but other technocrats are falling over each other to demonstrate their loyalty to him. The fear seems to be that opposing the leadership will end one’s political career. (Sound familiar? Trump’s GOP.)&nbsp;
Most politicians make the mistake of believing that power is the ultimate truth. They believe that power, authority, and right are one and the same, and everything else is secondary. But in politics, one is expected to uphold higher moral standards and be accountable to the public. &nbsp;
Lamichhane was elected on a populist platform, turbocharged by his fiery tv anchor role. But ever since he entered politics, he has defied and deflected allegations about his passport and citizenship by wiggling his way into any available coalition and bargaining hard for the home ministry post. He tried to do the same in the previous government to launder the cooperative scam.
He played hardball, and the current coalition is also playing hardball. That is politics, but Lamichhane has failed to grasp that patriotism is not proof of honesty. Instead, he has consistently resorted to fear-mongering, using vengeful language and spewing threats (including against the media) when in power and out of it.&nbsp;
He could have used legal means to defend allegations, or even stepped aside to facilitate the investigation. Instead, he has fallen back on social media-driven populism to foment public sympathy. The established parties are so discredited themselves that his supporters are willing to believe that the NC and UML are out to get him for exposing skeletons in their closet. By dismissing allegations against its chair, the RSP’s aspiring technocrats have undermined their own futures. The Greek philosopher Erasmus is supposed to have said that a fish rots from the head down.&nbsp;
That could very well apply to the RSP if its honest and competent second echelon do not follow their conscience, and continue to &nbsp;parrot a compromised leader. &nbsp;
This has been adapted with permission from an Editorial in Nagarik Daily published on 22 September 2024.

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RSP’s RSVP

Nepal and India are both Hindu-majority countries, but there is a difference between the Hindutva nationalism playing out in India’s ongoing elections and the Hindu faith as practiced in Nepal.
Most Nepalis are too busy trying to get by in hard economic times to be too engrossed with elections across the border. Some do harbour strong views about Narendra Modi’s brand of Hindu revivalism, and the RPP in particular seems to want to imitate the BJP’s ability to set a national Hindutva narrative.
Still, a majority of Nepalis look at Narendra Modi with something between indifference and fondness. The Indian Prime Minister has visited Nepal five times since he was first elected in 2014, and many here still remember his address to Parliament which he began in Nepali during his first state visit to Kathmandu.
There is a section in Nepal that supports a non-secular Hindu state, and Nepalis have noticed that every time Modi comes to Nepal he makes it a point to visit Hindu and Buddhist sacred sites. But in contrast to his BJP’s Hindu exclusionist policies in India, Nepal has traditionally enjoyed a syncretic blend of Hindu and Buddhist traditions.
Read also: <a href="https://nepalitimes.com/opinion/borderlines/the-south-wind-blows">The south wind blows</a>, Chandra Kishore
For most Nepalis, therefore, the affinity for BJP and Modi could be characterised as cultural rather than political. Most Nepalis still have memories of the hardships they suffered during the 6-month blockade that New Delhi imposed just after the 2015 earthquake because it did not like the contours of Nepal’s new draft Constitution.
The poor showing of the Hindu-monarchist Rastriya Prajatantra Party (RPP) in last month’s by-elections in Ilam and Bajhang shows that at least in the mountains, Nepalis are not so impressed with the polarised electoral politics on display in India. Interestingly, Bajhang is close to the Indian state of Uttarakhand which has declared itself to be a Hindu-only ‘Devbhumi’ and with which it has close cross-border cultural ties.
Although factions of the other four main parties in Parliament, the NC, UML, Maoist-Centre and the RSP, do flirt with the Hindu-monarchy line from time to time, there is not much public support for it yet and none of the four largest parties in Parliament has officially voiced its support for such an agenda.
When (and if) Modi does win a third term in India’s elections there could inevitably be ripple effects in Nepal — especially if the BJP’s mentors in the Rastriya Swayamsevak Sangh (RSS) adopt an even more radical agenda, abolish secularism from the Indian Constitution, or push the Greater India idea of ‘Akhanda Bharat’.
Read also: <a href="https://nepalitimes.com/here-now/india-s-faith-in-politics">India’s faith in politics</a>, Shrijan Pandey
Even so, rousing radical religious passions will not be as easy in Nepal, which is South Asia’s oldest nation-state and does not carry with it the historical baggage of Partition. Nepal’s Muslim minority which forms 5% of the population has for the most part lived in harmony with Hindus and Buddhists, although there are politically-instigated local flare-ups from time to time mainly along the southern border.&nbsp;
Though Nepal’s Hindu population is more than 80% (2021 census), Nepal as a whole is a country of minorities. The Hill-Brahmin and Chhetri may dominate the political and economic spheres, but they form less than 30% of the population. Nepal’s ethnic and indigenous groups have been asserting themselves, as seen in the recent Ilam by-election, where the UML’s Suhang Nembang comfortably beat the NC’s Dambar Bahadur Khadka by close to 6,000 votes. However, an independent candidate, Dakendra Singh Limbu, with no political affiliation, but who campaigned on a platform of assertive Limbu identity, made a strong showing, finishing third with 11,457 votes.
Such identity politics is more a response to ethnic exclusion and a demand for regional autonomy than pushing a religious agenda. Indeed, Nepal’s political parties have so far desisted from mixing religion with politics, even though some individual leaders in the parties sometimes seem to appear to be sorely tempted.
Nepal’s next general election is more than three years away, and India-style Hindutva politics could still be whipped up. For now, it seems more likely that it will be Nepali nationalism that will be a more potent vote-mobiliser.
This already seems to be happening, with the government minting Nepal’s new 100-rupee note that depicts the country’s ‘pointy map’ (‘chuchhe naxa’) showing a 350-sq km strip of territory in its northwestern tip which is also claimed by India.
Read also: <a href="https://nepalitimes.com/opinion/borderlines/crimson-saffron-and-green">Crimson, saffron and green</a>, Chandra Kishore
Akhilesh Upadhyay is former Editor-in-Chief of The Kathmandu Post and a Senior Fellow at the think tank, IIDS.

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<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1d289c7e80680e0af399jpeg.jpg" alt="" width="1086" height="631"/><figcaption>Debate over secularism and monarchy now threatens the RPP’s own unity. Leaders Kamal Thapa (left) and Rajendra Lingden (right).</figcaption></figure>The inauguration of the Rastriya Prajatantra Party (RPP) ‘Unity Convention’ on 1 December in Kathmandu provided a preview of the issues that will dominate Nepal’s elections a little more than a year away.Invited were leaders of other main parties, and they went at each other with hammers and tongs about <a href="https://www.nepalitimes.com/editorial/nepal-party-reincarnating-hindu-monarchy/" target="_blank" rel="noopener noreferrer">secularism and monarchy</a>. It sounded like the hustings already, indicating the likely fault-lines in the 2023 polls.From the RPP stage, Prime Minister Sher Bahadur Deuba mumbled platitudes about “the need for like-minded parties to work together for the betterment of the country”.  Madhav Kumar Nepal of the Unified Socialists who split from the <a href="https://www.nepalitimes.com/latest/post-convention-uml-eyes-set-on-elections/" target="_blank" rel="noopener noreferrer">UML</a>, urged the RPP not to “slide backwards” – meaning don’t bat for monarchy.But it was CP Mainali of the CPN (Marxist-Leninist) and Pushpa Kamal Dahal of the CPN (Maoist Centre) who showed that despite both being once diehard Communists, the comrades had widely divergent views on Nepal’s erstwhile monarchy.Mainali extolled King Mahendra’s nationalist credentials, adding that every political change in Nepal in the past half-century was a result of foreign (read “Indian”) interference. Mainali, who suffered serious injuries in a highway crash last year, has of late been making pro-monarchy statements.Dahal played to the gallery saying his Maoist party and the RPP may have divergent views but both were “patriots”. He then took a dig at Mainali, saying it was absurd for a republican who once decapitated class enemies to support a return to monarchy.“Maybe he should be heading the RPP,’ Dahal said, a proposal enthusiastically endorsed by former prime minister and RPP leader Lokendra Bahadur Chand.Ironically, the debate over secularism and monarchy now threatens the RPP’s own unity because of the defeat of incumbent party chair Kamal Thapa by newbie Rajendra Lingden.The campaigning itself was fairly civil, with both candidates meeting ex-king Gyanendra separately to seek his blessings. (King G, it is said, nodded sagely and told both to “go ahead”.) Lingden beat Thapa 1,817 to 1,617 on Sunday.Kamal Thapa served King Gyanendra loyally, and was home minister when security forces cracked down on pro-democracy supporters in April 2006. Obviously, he was not loyal enough to the royal.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1d2b9c7e80680e0af39ajpeg.jpg" alt="" width="676" height="775"><figcaption></figcaption></figure>After the results were out, Thapa lashed out at both Gyanendra and an unverified tweet from Himani Shah dripping with satire, lamenting being punished by ‘Nirmal Nibas’ for being loyal to the monarchy.Indeed, throughout the RPP convention both Thapa and Lingden had been trying to outdo each other’s monarchist connections, the primary agenda of the party’s political document called for the restoration of monarchy and Hindu state.Besides Lingden, his supporter and <a href="https://www.nepalitimes.com/here-now/rana-regime-restored-in-nepalganj/">Nepalganj mayor</a> Dhawal SJB Rana (a former <a href="http://archive.nepalitimes.com/news.php?id=10282#.Ya3DHVVBypo">Nepali Times columnist</a>) won general-secretaryship. Supporters of Kamal Thapa did manage to keep significant senior party positions.Lingden’s elevation to RPP chief will mean the party will be even more aggressive in promoting the royal-Hindu line throughout 2022. This will also have a ripple effect on other parties, especially the UML. After all, <a href="https://www.nepalitimes.com/latest/oli-sweeps-uml-party-polls/" target="_blank" rel="noopener noreferrer">K P Oli </a>who openly backed Lingden’s campaign in the 2017 elections against Krishna Sitaula of the NC, thus winning him the only RPP seat in Parliament.There is even talk of a UML-RPP electoral alliance, and if that happens Oli’s not-so-subtle drift to the Hindu-right during his prime ministership will not look so surprising.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1d2d9c7e80680e0af39bjpeg.jpg" alt="" width="1086" height="783"><figcaption>Dhawal SJB Rana</figcaption></figure>The NC is having its own convention next week in Kathmandu where it looks like Deuba will be re-elected party leader. But even in the NC, there is Shashank Koirala and others backing the Hindu state agenda.The ‘alternative’ Bibeksheel Sajha Party and its leader Rabindra Mishra is also pushing the anti-secularism, anti-federalism and monarchist line. He made a scathing attack on “those who garland Mao, but disown Mahendra” at a party unity gathering in Patan last week.When political parties cannot be distinguished by their socio-economic or political agenda, it is tempting for them to fall back on religion and the ‘order’ of the monarchy days. The parties have felt the public pulse, and detect disenchantment with the current federal polity, and especially against secularism which is seen to be foisted by outside forces.India’s gravitational pull on Nepal also means that the election campaigning next year could end up being a proxy battle reflecting the secularism debate in India itself. We are already beginning to see political alignments between and within Nepal’s parties reflecting this, and it will be more apparent in the coming months.

Battle lines drawn for Nepal elections

Go back to sleep, we'll wake you up when things start getting really exciting around here. Politicians are up to their ears waging party conventions, and nominating mascots.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1c9e9c7e80680e0af36cjpeg.jpg" alt="" width="1250" height="1909"/><figcaption>The UML started the ball rolling, and showed it has unparalleled finesse in the publicity department. Its choice of convention mascot is a naked two-legged one-horned rhino holding the party flag. (Since this is a family newspaper, we have put red undies on the upright rhino-soreass.)</figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1ca19c7e80680e0af36djpeg.jpg" alt="" width="1250" height="1909"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1ca49c7e80680e0af36ejpeg.jpg" alt="" width="846" height="1170"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1ca79c7e80680e0af36fjpeg.jpg" alt="" width="846" height="1170"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1caa9c7e80680e0af370jpeg.jpg" alt="" width="1399" height="1711"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1cad9c7e80680e0af371jpeg.jpg" alt="" width="1246" height="1524"><figcaption> </figcaption></figure><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161144/636d1cb09c7e80680e0af372jpeg.jpg" alt="" width="1000" height="1430"><figcaption> </figcaption></figure>

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Animule Farm

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

A cosy art space in Thamel comes alive this month with soft light filtering through glass windows and settling gently on ceramic works that radiate both silence and strength. Much like specks of dust shimmering in a sunbeam, fragments of uneven mirrors scattered at the centre of the exhibition catch fleeting reflections of passersby that force visitors to reflect on <a href="https://nepalitimes.com/review/the-fabric-of-society">life and society</a>. From a distance, the mirrors resemble playful, anime-style sunny side ups in bright shades. It may look random, but on closer inspection the <a href="https://nepalitimes.com/multimedia/hari-the-potter">meticulous craftsmanship</a> reveals itself in every curve, giving more permanent shape and form to the artist’s fingers on the original clay. Alongside are cups, vases, and plates adorned with <a href="https://nepalitimes.com/review/facades-and-flowers-from-nepal-to-italy">delicate sketches</a> of animals, houses, and trees. Some have inscriptions drifting across surfaces like floating letters. The vases rise in varying heights, dressed in muted greens, while some are blended with soft browns and yellows.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025082711084_3ccb0e0e002bee9521867cbca82d56a1dc1e3ed799c5159fc07adc6f674325ab.jpg" data-media-id="editor_3" data-image-id="2025082711084_3ccb0e0e002bee9521867cbca82d56a1dc1e3ed799c5159fc07adc6f674325ab" data-rendition-name="original" width="1080" height="810" loading="lazy" alt="Firing her imagination"> <figcaption>Photo: DALAI-LA ART SPACE</figcaption> </figure>  “Ceramics have taught me patience in unpredictability,” says ceramic artist Aishworya Shakya, 26, whose work is currently on display at Dalai-la gallery in Thamel. Shakya began with simple drawings, but as she delved deeper into her studies of fine arts, she began exploring new concepts and methods of idea formation. She found herself increasingly drawn to <a href="https://nepalitimes.com/banner/take-to-pottery-during-the-pandemic">the expressive potential of ceramics</a>. “Clay is flexible and transformative, and the process of turning it into a hardened form is cathartic,” she explains. “For me, it’s about free forms, feelings, and the intangible, which often take shape in <a href="https://nepalitimes.com/multimedia/kiran-manandhar-in-the-abstract">abstract ways </a>through ceramics.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250827100812_4e2efcf1284d6589d5eafb34b276b8d4c69ebba9453efe4af9a70c51b2e31d6f.jpg" data-media-id="editor_6" data-image-id="20250827100812_4e2efcf1284d6589d5eafb34b276b8d4c69ebba9453efe4af9a70c51b2e31d6f" data-rendition-name="original" width="739" height="985" loading="lazy" alt="Firing her imagination"> <figcaption>Photo: DALAI-LA ART SPACE</figcaption> </figure>  The writings on her finished ceramics are deeply rooted in her academic explorations of personal history. Shakya contemplated family relationships, and transformed them into patterns and inscriptions on clay — giving her private meditations an extension on <a href="https://nepalitimes.com/review/an-ode-to-the-ordinary">life and lessons</a>. “It is never fixed what I want to make when I begin,” says Shakya. “There might be a frame, but never anything too specific. My forms come through an intuitive process. If I try to meticulously plan everything, it never works out, so I just let it flow.” What begins as an imagined idea often transforms through the process, shaped by the unpredictability of clay and fire, keeping her grounded and open-minded. Shakya’s works usually undergo three rounds in the furnace: beginning with bisque firing, followed by layers of engobe underglaze mixed with pigments, which she applies in three coats before the second firing. Finally, she adds the glaze before the final firing. The most demanding part is actually in <a href="https://archive.nepalitimes.com/news.php?id=13617">preparing and mixing the clay</a>, removing bubbles, and refining it so the final product has at least some predictability, she says.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025082711080_d4856f6f195e9b2ad06144832121da0068aaf0f94800c483b278a204fbf3865e.jpg" data-media-id="editor_9" data-image-id="2025082711080_d4856f6f195e9b2ad06144832121da0068aaf0f94800c483b278a204fbf3865e" data-rendition-name="original" width="1280" height="960" loading="lazy" alt="Firing her imagination"> </figure>  The title Burned and Being comes from the ceramic-making process itself. “But more than just the process, it is an embodiment of my existence. As a person learning to take up space, I am filling my surroundings with things that inspire and align with me to create a sense of being and take a stand for myself,” Shakya explains. The artist is now looking ahead to expand her art beyond vases and mirrors to explore more sculptural forms. Burned and Being Till 30 September 11am to 7pm Dalai-la Art Space, Thamel

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