As soon as she milks her cow, 52-year-old Punam B K is off, pedaling her bicycle furiously along the highway with a blue milk can in the front basket.&nbsp; By the time she arrives at the Jaya Shiva Ganesh Dairy Producers Cooperative in Gopalganj village, others are already there, their bicycles parked on the roadside. The farmers are all holding on to their blue milk cans, and are chatting away.&nbsp; “We keep what is needed for the family, and sell whatever remains here at the cooperative,” says B K, as the volume, fat and non-fat solid content of her milk is measured. It is then poured into a bigger vat to be mixed with milk from other farmers. B K collects her receipt with the value of her milk, and prepares to head home. The farmers are reimbursed on a quarterly basis.&nbsp; Read also: <a href="https://nepalitimes.com/multimedia/a-family-that-works-together-stays-together">A family that works together stays together</a>, Sahina Shrestha “Everyone around here has at least a cow or buffalo to provide milk for the family, the cowdung is used for fertiliser, and we can bring whatever is left over to the cooperative,” says B K who, like the others, brings her milk by bicycle twice a day, once in the morning and again in the evening.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241210081232_0df32c0f6a572aef83eca02dc7a86f75ea5dbc88dc6c2390d42a44ab3cc93395.jpg" data-media-id="editor_1" data-image-id="20241210081232_0df32c0f6a572aef83eca02dc7a86f75ea5dbc88dc6c2390d42a44ab3cc93395" data-rendition-name="original" width="1700" height="1275" loading="lazy" alt="dairy farmers in Chitwan"> </figure>  All this may seem like nothing special, just an ordinary farmer selling her milk. But it has to be seen in the context of dairy farmers overcoming subsistence and increasing household income. Nearly 200,000 dairy farmers from over 1,200 cooperatives have not been paid by the government-run DDC for their milk for a year or more.&nbsp; The DDC has fixed a quota for buying milk from cooperatives that limits production even during the peak winter months. Farmers in Chitwan are so fed up, they have staged demonstrations in Kathmandu and even poured milk on the East-West Highway in protest.&nbsp; Punam B K’s milk ends up in Bhawani Dairy, a milk processing plant in Chitwan that buys milk from various cooperatives in the district. It was established six years ago by three entrepreneur cousins Devrath Baral, Drishya Baral and Subash Paudel and is now being supported by the Commercial Agriculture for Smallholders and Agribusiness (CASA) project.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241210081232_4e3c65390b9c5345f807b10cbb8c36b006ef6d3cb972e07b5067f4b2db2be32e.jpg" data-media-id="editor_2" data-image-id="20241210081232_4e3c65390b9c5345f807b10cbb8c36b006ef6d3cb972e07b5067f4b2db2be32e" data-rendition-name="original" width="1500" height="1102" loading="lazy" alt="dairy farmers in Chitwan"> </figure>  This UK-funded project implemented by Swisscontact in Nepal has been supporting agro-businesses in 23 countries in Asia and Africa. They focus on improving the capacity of private dairy and vegetable farmers to find markets and build a sustainable supply chain for their produce. It helps dairies like the one in Chitwan with branding and marketing, as well to track business through a Dairy Management System (DMS) digital database.&nbsp; Bhawani Dairy also got support to conduct orientation for cooperative farmers to learn about new ways to boost productivity with breeding, cowshed management and hygiene maintenance. Many commercial farmers in Chitwan, some with up to 60 cows and buffaloes, have benefited.&nbsp; B K says she only has six cows, so not everything she hears at the orientation about increasing cowshed area is applicable. “We are just happy our milk is not wasted, and we can earn some cash from the surplus,” she says.&nbsp; Bhawani Dairy’s clientele is based entirely in Chitwan and in towns along the East-West Highway. But building on its success here, the company is looking to expand nationwide and target the Kathmandu market. Being a perishable product, the <a href="https://nepalitimes.com/opinion/so-far-so-good/nepal-s-milk-heartland-rebounds">diary business is challenging</a>. Businesses also need investment and technical support to diversify into value-added milk products like cheese, yoghurt, ice cream or powdered milk.&nbsp; “For now, the best thing we as a dairy business can do for farmers is to buy their milk at a decent price and pay them in time,” says Drishya Baral of Bhawani Dairy.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241210081232_6c06efb5674dbcd8679015af543bfda87030755383a13c9269e272af28e85953.jpg" data-media-id="editor_4" data-image-id="20241210081232_6c06efb5674dbcd8679015af543bfda87030755383a13c9269e272af28e85953" data-rendition-name="original" width="1700" height="1275" loading="lazy" alt="dairy farmers in Chitwan"> </figure>  Another agro-industry supported by CASA since 2018 is Himalayan Supervores, a venture that sources farm produce to supply vegetables and other foods to restaurants and hotels in the city, and even export Halal-certified produce to Gulf countries.&nbsp; CASA helped with cold chain management system to keep vegetable produce fresh so that the products earn trust about quality in the national and international market. Himalayan Supervores is already exporting to UAE and Qatar, and is targeting other Gulf countries next. “The guidance provided by the international expert was invaluable, we could not have bought that knowledge even with money,” says Nelson Shrestha of Himalayan Supervores. “It was not about fancy hardware, but how to minimise wastage, increase productivity, save time and money.”&nbsp; Though Himalayan Supervores collects vegetables from vegetable cooperatives, it indirectly works with a network of thousands of cooperative farmers. Its catchment area therefore is enormous, and it has enhanced their knowledge about organic farming methods, bio-pesticides, and the right way to handle and package vegetables. CASA’s most recent tie-up is with Pokhara-based Poshilo Foods, which specialises in increasing the shelf-life of local nutritional food items. During the Covid lockdown <a href="https://www.instagram.com/p3bparajuli/">Prithwi Kallyan Parajuli</a> saw an opportunity to supply nutritional foods that stayed longer, and set up Poshilo.&nbsp; It took traditional satu flour made from dry-roasted pulse, added more nutrients, and packaged it. Four flavours of satu with nutrient values differentiated for various age groups now line the shelves of supermarket chains like KK Mart, Saleways. Poshilo is now exploring the export market in India.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241210081232_a8dbea8c8d45ac4eff6c37fb47da7ff461989c662ba86d207a008381101acdcf.jpg" data-media-id="editor_6" data-image-id="20241210081232_a8dbea8c8d45ac4eff6c37fb47da7ff461989c662ba86d207a008381101acdcf" data-rendition-name="original" width="1700" height="1275" loading="lazy" alt="dairy farmers in Chitwan"> </figure>  In the five years of helping Nepali agribusinesses, CASA has already teamed up with 35 established companies. Parajuli heaps fulsome praise on the catalytic support and guidance he got early on, not just for product design, but to explore market viability, branding and marketing.&nbsp; He has participated in government-led programs before, but says those are one-off and focus only on technical solutions and do not pay much attention to the important back-end work with management and sales.&nbsp; Says Devrath Baral of Bhawani Dairy in Chitwan: “We would probably have eventually got to where we are now, but it would have taken years longer without CASA. And now we can share our experience with other agribusinesses in Nepal.”

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Nepal makes farming viable again

This northern Thai city had a carnival atmosphere last week as 280 international digital media people descended on its university ground for the <a href="https://www.splicemedia.com/beta-2023" target="_blank">Splice Beta 2023</a> festival. Funders of startups, those starting new media ventures, content creators, journalists, editors, and entrepreneurs gathered to share experiences about how to survive and thrive in the new media landscape. This year’s special focus was on users, figuring out their special needs and how new media can be financially sustainable by providing them the information they need.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20231114061140_6d599ad4d1e5d3b1976483dd10451b2ff68485ae90e0e9cd5b75756e873c527f.jpg" data-media-id="editor_1" data-image-id="20231114061140_6d599ad4d1e5d3b1976483dd10451b2ff68485ae90e0e9cd5b75756e873c527f" data-rendition-name="original" width="1333" height="1000" loading="lazy" alt="Splice Beta 2023 NT"> <figcaption>Philip Smith of Journalism Growth Lab at his session on measuring impact of startups.</figcaption> </figure>  “The elephant in the room is the user,” explained <a href="https://www.instagram.com/alansoon73/?img_index=1" target="_blank">Alan Soon</a> of &nbsp;<a href="https://www.splicemedia.com/" target="_blank">Splice</a> Media. “The work of media startups and creators is meaningless if it isn’t valuable for the user of that information.” He added: “The future of media is not news-centred, ad-driven and content-based. It is user-centred, demand-driven and interest-based.” In his session on defining success of a media startup, Philip Smith of Journalism Growth Lab underlined the importance of measuring genuine impact. “Many startups fail because they are putting information out there that nobody wants,” he said, admitting that in countries where media freedoms are curtailed, reach may be difficult to quantify.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20231114061140_a270dfcde9f5ea117ccfb601fd6c6157a60efb50a7dc133ef6faa0284ae39735.png" data-media-id="editor_4" data-image-id="20231114061140_a270dfcde9f5ea117ccfb601fd6c6157a60efb50a7dc133ef6faa0284ae39735" data-rendition-name="original" width="1382" height="744" loading="lazy" alt="Splice Beta 2023 NT"> <figcaption>Roman Gautam and Neha Rajbhandari of Himal Southasian explain the 35-year-old magazine's newsletter and membership program.</figcaption> </figure>  “Ultimately, whatever you do has to work well as a business and the viability of the venture has to be clear from the very start,” Smith told a packed audience. &nbsp; The two-day festival at Chiang Mai University’s Faculty of Mass Communications had workshops, training and coaching classes on podcasting, fundraising for startups, newsletters and membership programs, AI, and combatting disinformation. &nbsp; Some 150 media companies from 57 countries attended the festival, with many of them using the event for networking and knowledge sharing. &nbsp;&nbsp; “We are not talking about the future of journalism, the future is already here,” said Splice co-founder <a href="https://www.instagram.com/rishadismyname/?img_index=1">Rishad Patel</a>. “Journalism isn’t in trouble, the traditional ad-driven mass media model is.” &nbsp; The Philippine digital news portal Rappler won the $32,000 AI in Journalism Challenge at the Splice Beta Journalism Festival. The competition had shortlisted 12 newsrooms from all over the world in August out of 113 applicants which wanted to use AI tools more productively to turn their stories into user-friendly formats.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20231114061140_d03d6563c902a4352f4c770c44b249a9e2cb69ccc454a0ebfb6fc5aba88786c8.png" data-media-id="editor_6" data-image-id="20231114061140_d03d6563c902a4352f4c770c44b249a9e2cb69ccc454a0ebfb6fc5aba88786c8" data-rendition-name="original" width="1066" height="926" loading="lazy" alt="Splice Beta 2023 NT"> </figure>  Rappler, which was founded by Nobel Prize-winning Philippine journalist Maria Ressa, was deemed by a panel of judges to have developed the most creative use of AI to turn its investigative stories into visual content more appealing to its young users. Rappler’s AI product is known by its acronym TLDR (Too Long, Didn’t read) and transforms its text-based news stories into interactive infographics, charts, photos and video capsules optimised for social media posts. At a demonstration last week at Splice Beta in Chiang Mai, Rappler came ahead of other online newsrooms like Brazil’s Agencia Publica, The Conversation from Indonesia, Zamaneh Media based in The Netherlands, and Cuestion Publica of Colombia. Zamaneh Media is an independent newsroom based in Amsterdam which is part of the Network of Exiled Media Outlets (NEMO) that was also a participant at the Chiang Mai festival last week and includes the Burmese media.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20231114061140_e07bf835fec4456941ff04ad27b6cb8c9db09fa07d01d551787217012a115259.png" data-media-id="editor_7" data-image-id="20231114061140_e07bf835fec4456941ff04ad27b6cb8c9db09fa07d01d551787217012a115259" data-rendition-name="original" width="1196" height="1150" loading="lazy" alt="Splice Beta 2023 NT"> </figure>  “This is an important event for the media operating in exile to empower each other with knowledge-sharing so that we &nbsp;can inform the world about the countries they are from,” said Sudeshna Chanda of Zamaneh.&nbsp; The Splice Beta festival coincided with news from Kathmandu last week that the popular Nepali online media outlets Setopati had decided to adopt a premium subscription model for its content due to falling revenue from advertising. On Monday, Nepal’s governing coalition cabinet<a href="https://nepalitimes.com/news/rattled-by-criticism-nepal-bans-tiktok"> decided to ban the wildly popular Tiktok platform</a>, saying it was inciting social disharmony. &nbsp;&nbsp; Nepali participants at the festival included journalists from Himalmedia, Herne Katha and Himal Southasian.

The future of journalism is already here

<img width="800" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141132/636bac8d9c7e80680e077f3bjpeg.jpg" alt=""/>The Bangladesh telecom company <a href="https://www.grameenphone.com/">Grameenphone</a> and <a href="https://www.seedstars.com/">Seedstars</a>, an emerging market startup investor are digitally going live with the broadcast of the <a href="https://www.grameenphone.com/gpaccelerator">GP Accelerator 2.0</a> Online Demo Day on 8 July, 4:00pm - 5.30pm (GMT+6). The online event is open to all attendees.As the first acceleration program managed by Seedstars focused on early-stage startups in Bangladesh, it is an initiative by GrameenPhone to provide startups in the country a platform to build their ideas and grow.The Online Demo Day is a culmination of the four and a half months-long program, and startup teams got a chance to work with international mentors from the USA, Switzerland, Netherlands, Germany, Thailand, Turkey, Sri Lanka, Canada, as well as local startups from Bangladesh. Among other benefits, the 9 startups selected had access to a $5000 equity free grant, one-on-ones with entrepreneurs in residence and co-working with other startups and ensure experience sharing and network expansion, and access to Seedstars partner network.The batch includes teams from Bangladesh developing Online Renting Furnish Platform, Buying Auto-mobile Parts and Services through Mobile Application, FieldForce Tracking and Management Solution, One-stop solution of tailoring and others.“GP Accelerator powered by Seedstars is a great opportunity to witness and get involved with Bangladesh's top early stage startups,” says Ratish Narayanan, Seedstars general manager.<a href="https://www.seedstars.com/">Seedstars</a> is a Swiss-based private company with a mission to impact people’s lives in emerging markets through technology and entrepreneurship. The groups’ activities cover over 90 ecosystems through a variety of initiatives such as the <a href="http://bit.ly/1Mbf7NC">Online Seedstars World Competition</a>, acceleration programs, physical hubs called <a href="https://www.seedspace.co/">Seedspace</a>, venture capital investments and company building activities.

Tech startups get boost with Bangaldesh demo day

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

Nepal has shut down dozens of social media platforms in a move that is widely seen as an effort to tax the revenue they generate in the country, and to control content critical of government. The sites were blocked as of midnight on Thursday, 4 September and affects all Meta products including WhatsApp and Messenger, Threads, and others. Although YouTube, Google and X are also on the government’s list, they were still working as of Friday midday.&nbsp; The government says it took the action after repeated warnings to the platforms to open offices in Nepal, a Cabinet decision last month setting a deadline, as well as a 17 August Supreme Court ruling also requiring them to register and pay requisite taxes. However, the Bill cited in the ban, ‘The Operation, Use, and Regulation of Social Media in Nepal’ has not yet been passed by Parliament. Some social media platforms which were already paying taxes in Nepal even though they are not officially registered, have also been blocked. The move is the latest in <a href="https://nepalitimes.com/news/big-beautiful-bills" target="_blank">a slew of draft legislations</a> designed to undermine Nepal’s open society. A Bill amending the Print and Publications Act would allow district bureaucrats to shut down media. Another draft Bill would allow political appointees to head a new Media Council with the power to revoke the licenses of journalists.&nbsp; A counter-intelligence Bill would let just about anyone in government to arbitrarily tap phones, read emails and trail citizens. On Wednesday the government announced new immigration requirements that would allow it to track the movement of all foreigners in the country. Yet another draft Bill has been set to Parliament to dissolve the <a href="https://archive.nepalitimes.com/news.php?id=10675" target="_blank">Social Welfare Council (SWC)</a> and move registration and monitoring of non-governmental organisations, nonprofits and charities to the Ministry of Social Welfare. Seen in this light, the blockage of social media platforms this week is seen as the latest government attempt to constrict freedom of press. Nepal is one of the few remaining open societies in Asia, and now appears to be drifting towards authoritarianism. The government’s sudden shutdown of social media has been greeted with howls of protest on platforms that still remain open, like Viber and TikTok, as well as in Nepal’s mainstream press. Even senior members of the ruling UML-NC coalition have sharply criticised the move, asking if the government is trying to “turn Nepal into North Korea”.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025090508098_a2ab330e403e8418a7006cd5e915607382628dd6984524332bf7b99c74743656.jpg" data-media-id="editor_2" data-image-id="2025090508098_a2ab330e403e8418a7006cd5e915607382628dd6984524332bf7b99c74743656" data-rendition-name="original" width="4280" height="5187" loading="lazy" alt="social media ban in Nepal"> </figure>  The Regional Director of the New York-based Committee to Protect Journalists (CPJ) Beh Lih Yi said in a statement: ‘Nepal’s sweeping ban on social media sets a dangerous precedent for press freedom. Blocking online news platforms vital to journalists will undermine reporting and the public’s right to information. The government must immediately rescind this order and restore access to social media platforms, which are essential tools for exercising press freedom.’ Besides undermining press freedom, blocking social media platforms will also hurt commerce and the economy since so many small and medium business trade through Instagram, Facebook and other platforms. Nepal’s vibrant social media has also been a boost or citizens to assert identity, build solidarity against injustice and play an adversarial role when the mainstream media does not do it. Social media platforms have also become the tenuous link for Nepali families scattered across the world to keep in touch with each other — its importance growing with the increasing size of the diaspora. The government wants social media platforms to register, pay taxes and remove posts on their sites that ‘undermine the national interest and Nepal’s territorial integrity, disturb social and religious harmony’.&nbsp; In response, rights activists have said while there is need for the government to regulate extreme content and hate speech, officials appear to be more intent on clamping down on free speech and trying to force platforms to share the revenue. On Friday, the government had allowed WhatsApp back online, but there were reports that it had instructed the Nepal Telecommunication Authority (NTA) to instruct mobile and internet service providers to block by Friday night all platforms, including Facebook, Instagram, Messenger, WhatsApp, X (Twitter), YouTube, LinkedIn, Reddit, Threads, Snapchat, Pinterest, Signal, Clubhouse, Rumble.&nbsp; Platforms that have registered and are allowed include TikTok, Viber, Nimbuzz, Popo Live, WeTalk, Global Diary and the Nepali portal Hamro Patro. TikTok was banned last year for ‘disturbing social harmony’ and it was lifted after the platform registered its office in Nepal. But even while it was banned, many users simply switched to VPN. Telegram was also banned for ‘financial crimes’ and it has since also been allowed back. NTA officials confirmed that some Asia-Pacific regional offices of platforms, including Meta had been in touch overnight inquiring about the registration process.&nbsp; Nepal is not alone in regulating social media. China bans most Western platforms, Russia and Turkey regulate their and require platforms to locate their data servers in the country. Gulf countries allow social media but keep a tight control on dissent.&nbsp; Experts have said even the government will not dare close down YouTube since so many Nepali individuals and companies make money with posts on that platform, and closing it would also impact on Google and Gmail. Facebook had also just launched a monetisation scheme for videos and reels, and Nepalis uploading content would lose revenue.&nbsp; Blocking the platforms has already hit content creators, influencers and cut small businesses from reaching customers. A survey of social media use in Nepal by Sharecast Initiative showed that 94% of those with smart phones used YouTube, followed by Facebook (92%) while TikTok was in the 50-60% range. X and Instagram were in the single digits. A YouTube ban will also hurt the mainstream media since up to 20% of the revenue of Nepal’s main tv channels came through YouTube. Some 11.1 million Nepalis watch YouTube content every day, the survey showed. ‘For global giants like Meta or Google, Nepal is a small market, and they may not even flinch — but for millions of Nepalis, these platforms are central to daily life, livelihoods, and connections across the world,’ wrote AI consultant Naresh Newar in a LinkedIn post. Some experts said the government’s sweeping ban on social media networks was untenable and the government would be forced to rollback sooner or later. Said editor Shiva Gaunle: “The platforms had given citizens a voice and broken the monopoly of the government, legislators, the courts and journalists over public opinion. This is an effort to reassert that monopoly, but Nepal can never be turned into a North Korea.”

Protest grows against Nepal’s social media ban

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;

The flower guy

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.”