GORKHA — Two new hydropower projects, Budhigandaki ‘A’ and Budhigandaki ‘B’, are set to be built in Gorkha. Budhigandaki ‘A’ will generate 103.4 megawatts, while Budhigandaki ‘B’ will produce 226 megawatts, according to project engineer Durgesh Magar. Both projects are being promoted by Naulo Nepal Hydro Electric Company Pvt. Ltd. The company plans to invest NPR 31.32 billion in Budhigandaki ‘A’ and NPR 56.99 billion in Budhigandaki ‘B’. Budhigandaki ‘A’ will include a dam at Lusyang in Dharche-3. Water will be diverted through a 4-kilometer tunnel to a powerhouse at Machakhola. Both projects will use run-of-the-river technology. Budhigandaki ‘A’ will…
Author: Nepal Monitor
The International Monetary Fund (IMF) has raised concerns that Nepali banks are using loose loan‑classification practices, keeping weak provisions for risk, expanding evergreen lending, and operating with weak credit‑risk management systems. In Kathmandu, a new review shows rising credit risk in large project loans issued by commercial banks. Many projects have not made the physical progress expected for the size of the loans they received. A Bangladeshi consulting firm, Hawlader Yunus & Company, is testing the loan quality of 10 major commercial banks. Its early findings show slow construction progress compared with the volume of credit disbursed. Officials at Nepal…
Kathmandu — Reliance Spinning Mills Limited has opened its Initial Public Offering (IPO) to the general public starting today, following earlier allotments to Nepali citizens working abroad and institutional investors. The company priced its IPO using the book building method, the same approach used previously by Sarbottam Cement. Reliance first offered shares to Nepali migrant workers, then allocated shares to qualified institutional investors through competitive bidding. The cutoff price was set at NPR 912 per share. After applying a 10% discount, the final price for public investors is NPR 820.80 per share. Out of the total offering, 57,798 shares are…
Kathmandu — Nepal’s growing dependence on external loans for development has raised new concerns as major lenders increase interest rates and tighten concessional terms. For years, Nepal enjoyed low‑cost loans because its economic growth and job creation remained weak. The International Monetary Fund recently said Nepal’s external debt remained in a “comfortable” range. That status gave the government room to borrow more for infrastructure and speed up development. That window is now narrowing. A key reason Nepal’s external debt carried low risk was the combination of cheap interest rates and long repayment periods. Those terms are changing. The World Bank…
China’s customs administration informed Nepal’s Ministry of Agriculture and Livestock Development that exported buffalo meat must come from animals born and raised in Nepal and be under 30 months of age. This strict condition has halted preparations by Nepali meat businesses, which had relied on importing live buffalo from India for slaughter and processing before export. Official data shows Nepal’s buffalo population is declining. Annual production is about 116,000 metric tons, barely enough to meet domestic demand. Export would require importing up to 70 percent of buffalo from India, but China’s rules now prohibit that practice. Nepal must instead rely…
On Wednesday, Paudel met with chief executive officers from all 20 commercial banks, along with leaders from development banks and finance companies. He noted that more than 11 trillion rupees remain stuck in the system without flowing into loans. He called on bankers to take an active role in increasing credit supply. Paudel stressed that agriculture should be the priority sector. He said that raising agricultural lending above 50 percent would help keep the economy active and support long-term stability. Bankers confirmed that the central bank also wants to see more loans directed toward infrastructure and private sector projects. Bankers…
Huawei, the main contractor for the 19-billion-rupee project, was supposed to be blacklisted under the Public Procurement Act for failing to meet contract terms. Instead, political protection allowed the company not only to avoid penalties but also to secure billing rights. The project has suffered from poor quality and mounting costs. Nepal Telecom continues to pay mandatory regulatory fees while customers face weak service. The company has been paying more than 100 million rupees annually for unused WiMAX frequency, held for small cell equipment that Huawei never installed. Huawei’s partner company, CCSI, was contracted to install about 6,000 small cell…
Blackheath’s award-winning Nepalese restaurant, Everest Inn, is delighted to announce the return of its famed Laughing Buddha Statue, which will be proudly displayed at the restaurant from 13th January to 12th February 2026. For many years, the historic statue stood at the entrance of the former Laughing Buddha Chinese Restaurant, becoming a familiar and cherished symbol of joy. When Everest Inn later took over the site, owner Yadav ensured the statue was lovingly preserved, relocating it to his own garden where it has remained ever since – still continuing the time-honoured tradition of rubbing its bely for good luck. Over…
Kathmandu — Nepal’s anti-corruption agency has charged a Chinese state-owned company and dozens of officials for manipulating costs and bypassing fair competition in the Pokhara International Airport project. The Commission for the Investigation of Abuse of Authority (CIAA) filed charges against 55 individuals, including former ministers and senior bureaucrats, along with China CAMC Engineering. The agency alleges they inflated the airport’s cost by over $74 million and violated procurement laws. The project was funded by a $216 million loan from China’s Export-Import Bank. According to the agreement, the loan terms allowed only Chinese firms to bid, and the cost estimate…
Kathmandu — The Ministry of Finance has directed provincial and local governments not to impose taxes, fees, or charges on goods transported through their territory when the route is used only for transit. The ministry issued a clarification stating that collecting such charges violates the constitution and existing laws. Officials emphasized that goods moving from one district or local government to another cannot be taxed simply for passing through. The directive was sent to provincial governments through the Office of the Prime Minister and Council of Ministers, and to all local governments through the Ministry of Federal Affairs and…