KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The following text presents a snapshot of recent economic developments in Nepal, highlighting fluctuations in the gold and silver markets, challenges in revenue collection at the Birgunj Customs Office, the commencement of commercial power generation by the Seti Hydropower Project, and corporate financial activities such as proposed dividends and forthcoming share issuances.
The gold price drop of Rs 600 per tola, influenced by changes in customs duties, reflects the volatility of precious metal markets, which is also echoed in the slight increase in silver prices.
Meanwhile, the Birgunj Customs Office faces a shortfall in revenue collection, partly due to the impact of public holidays, despite a slight increase over last year’s revenue.
On the energy front, the Seti Hydropower Project marks a significant achievement in Nepal’s renewable energy sector.
The proposed dividends from Mithila Laghubitta and the upcoming share offerings from several companies indicate active movements in the country’s corporate and financial markets.
Overall, the text portrays a dynamic economic landscape marked by both growth and challenges across multiple sectors.
Gold price drops by Rs 600 per tola
The price of gold in Nepal experienced a drop of Rs 600 per tola on Friday, bringing it down to Rs 150,100, after two days of consecutive increases.
This decline followed a significant Rs 18,500 drop last week over just two days.
While gold prices fell, silver saw a slight increase, rising by Rs 10 per tola to Rs 1,890.
The fluctuation in both precious metal prices was attributed to the recent reduction in customs duties by the government, which has influenced the market dynamics.
This change in gold and silver prices highlights the ongoing volatility in the precious metals market.
Birgunj customs office fails to meet target in revenue collection
The Birgunj Customs Office has fallen short of its revenue collection target for the first four months of the current fiscal year, collecting Rs 49.92 billion against a target of Rs 70.44 billion.
Chief Customs Administrator Dipak Lamichhane attributed the shortfall to a higher number of public holidays during the months of Asoj and Kartik, which affected revenue inflow.
The customs office, which generates 70 percent of its revenue from petroleum products, industrial raw materials, and vehicles, saw month-on-month variations in collections, with Rs 11.4 billion collected in Kartik, the lowest during the period.
Despite the shortfall, revenue collections in the first four months of this fiscal year have slightly exceeded last year’s figure of Rs 49.18 billion, indicating a modest growth trend.
Seti hydel project begins commercial power generation
The Seti Hydropower Project, located in Machhapuchchhre Rural Municipality of Kaski, has officially commenced commercial power generation with a capacity of 25 megawatts.
After successfully completing power plant tests, interconnection, and commissioning, the generated electricity is now being fed into the national grid through the Nepal Electricity Authority (NEA) system via a substation at Lahachowk.
With a total investment surpassing Rs 5 billion, the project utilizes a 6,400-meter-long underground pipeline to channel water from the Seti River in Sardhikhola to the powerhouse at Chintebagar.
This development marks a significant step towards enhancing Nepal’s renewable energy capacity and meeting growing power demands.
Mithila Laghubitta proposes 15% dividend
Mithila Laghubitta Bittiya Sanstha Limited (MLBBL) has announced a proposal to distribute a 15% dividend, totaling Rs. 2.94 crores, for the fiscal year 2080/81.
During the 262nd board meeting held recently, the decision was made to allocate the dividend based on the paid-up capital of Rs. 19.60 crores.
The proposed distribution includes 14.286% bonus shares valued at Rs. 2.80 crores and a 0.714% cash dividend of Rs. 14 lakhs (for tax purposes only).
The dividend will be finalized once it receives approval from the central bank and is endorsed at the company’s upcoming AGM.
Three companies awaiting SEBON approval
The FPO proposals of three companies are currently in SEBON’s pipeline. Butwal Power Company Limited has proposed issuing 100,000,000 shares at a face value of Rs. 206.3, aiming to raise Rs. 20.62 billion.
The application was submitted on 27th Falgun, 2080, with Nabil Investment Banking Limited as the issue manager.
National Laghubitta Bittiya Sanstha Limited plans to issue 669,900 shares, raising Rs. 6.69 crores, with the application submitted on 7th Bhadra, 2081, and RBB Merchant Banking Limited as the issue manager.
Bijay Laghubitta Bittiya Sanstha Limited intends to issue 466,817 shares, raising Rs. 4.66 crores, with the application submitted on 23rd Ashwin, 2081, and NMB Capital Limited as the issue manager.
(Prepared by Srija Khanal)
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