KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal has officially begun exporting electricity to Bangladesh under a tripartite agreement signed on October 3.
On Friday, the Nepal Electricity Authority (NEA) confirmed the successful export of 40 megawatts of electricity to Bangladesh, with approval from India.
The export will be carried out annually from June 15 to November 15, as stipulated in the agreement.
The launch of this initiative was marked by a ceremony organized by Nepal’s Ministry of Foreign Affairs in Kathmandu.
This marks a significant step in regional energy cooperation, with Nepal potentially playing a key role as an energy supplier to neighboring countries in South Asia.
In related news, the price of gold saw a slight uptick after two weeks of decline, rising by Rs 100 to Rs 160,100 per tola.
Meanwhile, commercial banks have reduced deposit interest rates for the month of Mangsir, with the maximum average rate for personal term deposits dropping to 5.96%, down from 6.18% last month.
In the financial sector, Samata Gharelu Laghubitta finalized its Further Public Offering (FPO), allotting shares to 35,090 applicants, and adjusting its shareholding ratio to meet the regulatory requirement for public ownership.
Nepal begins electricity export to Bangladesh
Nepal has begun exporting electricity to Bangladesh. Under a tripartite agreement signed on October 3, Nepal initiated the export of 40 megawatts of electricity to Bangladesh on Friday.
Chandan Kumar Ghosh, spokesperson for the Nepal Electricity Authority (NEA), confirmed that with approval from India, the electricity was successfully sent to Bangladesh on Friday.
The electricity export was officially launched during a ceremony organized by the Ministry of Foreign Affairs in Kathmandu.
Under the agreement, Nepal will export electricity to Bangladesh from June 15 to November 15 each year.
Gold price sees slight increase after two weeks of decline
The price of gold, which has been on a downward trend for the past five days, saw a slight increase today (Friday).
After dropping by 2,400 rupees to 160,000 rupees on Wednesday, the price of gold rose by Rs 100 today.
According to the Nepal Gold and Silver Traders Federation, gold is being traded at 160,100 rupees per tola today. The price of gold had fallen by 2,200 rupees yesterday.
Banks reduce interest rates for Mangsir
Commercial banks have reduced deposit interest rates for Nepali month of Mangsir (mid-November and mid-December) this year.
The maximum average interest rate offered for personal term deposits has decreased for the second consecutive month.
In last month, the average interest rate for personal term deposits was 6.18%.
For Mangsir, this has been reduced to 5.96%, marking a decline of 0.22 percentage points.
This follows a reduction of 0.21 percentage points in Nepali month of Kartik compared to Asoj.
Samata Gharelu Laghubitta FPO allotment finalized
The Further Public Offering (FPO) allotment of Samata Gharelu Laghubitta has been finalized, with 35,090 applicants out of 1,347,513 receiving 10 units each.
The company had issued a total of 350,904.25 units, valued at Rs. 3.50 crore, to the public between Kartik 12-20, 2081.
Samata Gharelu Laghubitta’s current paid-up capital stands at Rs. 56.40 crore, with 73.80% of shares owned by promoter shareholders and 26.20% by the public.
In accordance with the Banks and Financial Institutions Act of 2073 and NRB regulations, at least 30% of the capital must be held by public shareholders.
To meet this requirement, the company offered 350,904.25 units through the FPO, which will adjust the shareholding ratio to 69.48% for promoters and 30.52% for the public.
(Prepared by Srija Khanal)
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