KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The recent developments in Nepal highlight significant strides in boosting economic growth and addressing financial challenges.
The export of electricity worth Rs 13 billion to India demonstrates Nepal’s increasing energy surplus and its effective use of competitive pricing and bilateral agreements, providing a valuable revenue stream.
In parallel, the Dairy Development Corporation (DDC) has taken proactive steps to combat its financial struggles by signing an agreement to supply raw cheese, showcasing efforts to revitalize key industries.
Additionally, the $777.6 million loan and grant agreements with the Asian Development Bank (ADB) will fund crucial infrastructure projects, fostering long-term development.
Meanwhile, the government’s plans to enhance the Lumbini and Buddhist circuits for tourism emphasize the country’s commitment to expanding its tourism sector, with a focus on connecting heritage sites and boosting regional economies.
Together, these initiatives represent a multifaceted approach to strengthening Nepal’s economic foundation and infrastructure.
Nepal exports electricity worth Rs 13 billion to India in 5 months
Nepal exported electricity worth 13.04 billion rupees to India in the first five months of the fiscal year 2081/82, according to the Nepal Electricity Authority.
A total of 1.76 billion units of surplus electricity were exported between Shrawan and Mangsir, with an average selling price of 7.39 rupees per unit.
The NEA sold the electricity through competitive pricing on the Indian Energy Exchange (IEX) and bilateral agreements with Haryana and Bihar states, earning INR 8.15 billion.
Shrawan recorded the highest exports, totaling 4.15 billion rupees at an average price of 8.35 rupees per unit.
Nepal’s electricity exports to India highlight the country’s growing energy surplus and its strategic use of competitive pricing and bilateral agreements to generate significant revenue.
DDC strikes Deal to export raw cheese
The financially struggling Dairy Development Corporation (DDC) has signed an agreement to supply raw cheese to a private company in an effort to raise funds as Nepal’s largest dairy company faces the risk of bankruptcy.
Under the deal, the state-owned DDC will provide 1,000 kg of raw cheese or whey, derived from 10,000 liters of milk daily, to Himalayan Dog Chew, a company owned by Manaram Group, which is a major exporter of the hardened cheese.
The agreement was finalized by Surya Prasad Paudel, DDC’s general manager, and Poonam Karki, CFO of Manaram Group, on Wednesday.
Nepal and ADB sign $777.6 million loan agreements
The Government of Nepal and the Asian Development Bank (ADB) have finalized agreements for loans and grants amounting to $777.6 million (around Rs 105.59 billion) to support key infrastructure and development initiatives.
The agreements, signed on Friday, December 20, were formalized by Finance Secretary Ram Prasad Ghimire and ADB’s Country Director for Nepal, Arnaud Cauchois.
The funds will be used for three major projects: the Kathmandu Valley Water Supply Improvement Project (Phase 2), the SASEC Electricity Transmission and Distribution Strengthening Project, and the Green, Resilient, and Inclusive Development (GRID) Program.
Lumbini circuit to be developed for tourism promotion
Chief Minister of Lumbini Province, Chet Narayan Acharya, announced plans to develop the Lumbini and Buddhist circuits to boost tourism.
The initiative aims to connect Rupandehi, Kapilvastu, and Nawalparasi (west) through the Buddhist circuit, while linking all 12 districts of Lumbini Province through the Lumbini circuit.
The government will also construct tourism infrastructure to connect heritage sites, from Tilaurakot to Ramgram in Nawalparasi, as part of a master plan for the Buddhist circuit.
(Prepared by Srija Khanal)
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