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Nepal makes over Rs11 billion selling power to India
The earning was the third largest from the export of a single commodity in the fiscal year 2021-22.
- PRITHVI MAN SHRESTHA
KATHMANDU,
Nepal earned over Rs11 billion by selling excess power to India from early June to this week, the Nepal Electricity Authority said on Monday. The high income suggests electricity has emerged as a major export item.
In early November last year, India had for the first time allowed Nepal to sell electricity in the Indian market via a competitive bidding process.
But after exporting for a few weeks, Nepal stopped selling power to India in December amid reduction in power generation in the dry season. Exports resumed this year with the start of monsoon in early June.
Initially, the southern neighbour had permitted Nepal to sell 39MW generated by the 15MW Trishuli and 24MW Trishuli hydropower projects.
However, Nepal was allowed to sell up to 364MW produced by six hydroelectric projects—140MW from the Kaligandaki Hydropower Project, 68MW from the Middle Marsyangdi, 67MW from the Marsyangdi and 51MW from Likhu-4 developed by the private sector, besides 37.7MW from Trishuli and Devighat hydropower projects—beginning early June this year.
In November this year, India allowed export of additional power from the 22.1MW Chilime Hydropower Project and 23.5MW. “Nepal has got approval to export 408MW from eight projects,” the NEA said in a statement.
The power utility body said it sold 1.35 billion units of electricity to the southern neighbour since resuming transfer in June. Earnings for the period stood at Rs11.16 billion as power was sold at the rate between Rs6.58 and Rs12.15 a unit.
It earned Rs2.83 billion from exports from July to the end of the last fiscal year 2021-22 and an additional Rs8.32 billion since the start of the new fiscal year 2022-23, according to the utility body. It aims to earn Rs16 billion within the current fiscal after resuming exports in May next year.
If the export target for the current fiscal year is met, the country is likely to become a net exporter of power. In the last fiscal year, the NEA imported power worth Rs15.46 billion. Along with growing power production in the country, the power import bill has been on a decreasing trend. In the previous fiscal year 2020-21, Nepal had imported electricity worth Rs21.82 billion, according to the NEA.
Nepal’s earning from electricity was the third largest from the export of a single commodity in the last fiscal year 2021-22.
Soybean oil topped the chart with exports worth Rs48.12 billion in the last fiscal year, followed by palm oil (Rs41.06 billion), according to the Trade and Export Promotion Centre (TEPC), a trade promotion agency under the commerce ministry.
Nepal earned as much as Rs11 billion by exporting yarns and Rs9.56 billion by exporting woollen carpet in the last fiscal year, according to the TEPC.
“Obviously, electricity has emerged as a big export product,” said Mohan Kumar Dangi, vice president of the Independent Power Producers Association of Nepal (IPPAN). “With more power projects set to be connected to the national grid, it has been necessary to explore the domestic and external markets.”
The NEA has projected an addition of 705MW to the country’s power system by the end of the current fiscal year 2022-23. Currently, Nepal’s power projects have an installed capacity of over 2,200MW.
The country faced power spillage this wet season owing to decreased demand at home and the Indian export cap of 408MW. “So, without increasing domestic demand and getting approval from India to export more, there is the possibility of more spillage next wet season,” said Dangi.
However, he hoped that India would be flexible and buy more as the southern neighbour has a policy of increasing the share of clean energy in its energy mix.
Nepal and India announced the Joint Vision Statement on Power Sector Cooperation in early April during Prime Minister Sher Bahadur Deuba’s visit to India. The statement talked about strengthening cooperation on joint development of power projects in Nepal, and the development of cross-border transmission infrastructure and bi-directional power trade with appropriate access to electricity markets in both the countries, based on mutual benefits.
The two countries have moved ahead to build the New Butwal-Gorakhpur Cross-Border Transmission Line, which will enable trade of more energy.
Dangi, however, insisted that the country needs to expand the domestic market for power by replacing fossil fuel, sell more to India and start exporting to Bangladesh as well.
For now, the NEA has stopped exporting to India amid a fall in output owing to reduced water levels in the snow-fed rivers where hydropower plants are based. Instead, the NEA has started importing power from India as domestic production is not enough to sustain high winter-time demands.
Nepal imported 4,477-megawatt hours of electricity from India on Monday.
Nepal has been decreasing electricity imports from its southern neighbour amid a gradual rise in domestic production. The total energy imported from India was 1,543 gigawatt-hours in the fiscal 2021-22 as compared to 2,806-gigawatt hours in the fiscal 2020-21, which is a decrease of 45.01 percent, according to the annual NEA.
The net import of electricity after the deduction of export was 1,050 gigawatt-hours, which accounts for only 9.49 percent of the total available electricity in FY 2021/22.
Kul Man Ghising, managing director of the NEA, said that the country might have to import power for four months. “But unlike in the past years, imports this year will be lower than exports,” said Ghising. “We will be a net exporter of power in terms of both volume of energy and earnings.”
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It’s Thapa vs Deuba in Congress MP leader race
Win or lose parliamentary party vote, Gagan Thapa has already projected himself as the party’s future leader.
- PURUSHOTTAM POUDEL
KATHMANDU,
Gagan Thapa, the 46-year-old general secretary of the Nepali Congress, will run against the 76-year-old party president Sher Bahadur Deuba for the position of parliamentary party leader in an election today. To be elected the leader, a candidate has to secure the backing of at least 45 of the party’s 89 lawmakers.
“Whether or not Gagan Thapa wins the parliamentary party election on Wednesday, by being picked as the opposition faction’s consensual candidate, he has already projected himself as the party’s future leader,” Krishna Khanal, a political analyst, told the Post. “While Thapa was the de facto leader of the party earlier too, he will now get a chance to establish himself as an independent power centre.”
Many in the opposition faction, however, do not accept Thapa as their leader. “Although our group recommended Thapa’s name for the parliamentary party leader, Shekhar Koirala is still our leader,” said Sanjaya Kumar Gautam, a party lawmaker.
Thapa got the approval to contest the election following his meeting on Tuesday with at least 35 Congress lawmakers. The group also decided to endorse Koirala as party president at the 15th general convention. (Koirala had lost the race for party presidency to Deuba at the 14th Nepali Congress general convention in December 2021.)
Koirala, addressing the meeting of his followers at the venue, said: “I am in favour of a generational shift in politics. That is why I would like to support Gagan Thapa for the position of parliamentary party leader.”
It is said that Koirala decided to support Thapa’s bid for parliamentary party leadership after he was promised the faction’s backing in the presidential contest at the next general convention.
However, some experts disagree.
“Koirala wasn’t going to fight a losing battle. He instead pushed someone from the younger generation when he found his own chances of winning the party election slim,” Rajesh Gautam, a political analyst, told the Post. “Had he been more certain of winning, he would not have backed Thapa.”
However, Gautam said Thapa’s decision to contest parliamentary party leadership is a significant step. “The message is that Thapa has dared to fight such a formidable foe,” Gautam said. “His winning or losing is really irrelevant.”
In the run-up to Wednesday’s party election, Congress leader Ram Chandra Paudel proposed Deuba’s name for parliamentary party leader, while party vice-president Purna Bahadur Khadka seconded his proposal. Though Paudel himself was an aspirant for the post, he could not garner the support from rival factions.
Koirala proposed Thapa’s name for parliamentary party leader, while another vice-president Dhanaraj Gurung, another general secretary Bishwa Parkash Sharma and Pradip Paudel, a party leader, seconded the proposal.
Although leaders close to Thapa claim he will put up a strong fight, Deuba’s chances of winning remain strong. Deuba is favoured to win parliamentary party leadership as most of the incoming Congress parliamentarians are from his camp.
However, a party leader close to Thapa, said: “Yes, we will need to put in some effort but a victory for our candidate is not impossible.”
Meanwhile, President Bidya Devi Bhandari has already invited House members to claim the office of the prime minister by December 25.
As a result, the Congress will choose its parliamentary party leader before the lawmakers-elect are sworn in.
According to Nepali Congress’ statute, any party leader who aspires to become prime minister must first win the election for parliamentary party leader. If more than one candidate stakes a claim for the position, an election will be held to determine the winner.
Deuba’s establishment camp claims it has the support of at least 55 lawmakers, while Thapa’s rival camp claims the backing of around 38 lawmakers as of Tuesday evening.
The election for the parliamentary party leadership is scheduled to be held at 8 am on Tuesday at the party’s parliamentary committee office at Singha Durbar.
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Duped: The curious case of bounced cheques
In the past five months, 2,529 cheque bouncing cases were registered at Kathmandu District Police Range.
- ANUP OJHA
KATHMANDU,
To Srijana Chand, who had just built a new house at Gongabu, Ramesh (name changed), an owner of a furniture outlet at Bhangal, Bansbari, was someone she could trust with finances. He used to supply her furnishing items from his outlet as and when she required.
In September, Ramesh asked for a Rs1.9 million loan from Chand and gave her a post-dated cheque. Chand informed her husband Dibendra, 47, about Ramesh’s request. Dibendra, who had recently returned from Macau after working there for 13 years, agreed to Ramesh’s request, based on their past experience of doing business.
Ramesh had already supplied furniture worth around Rs1 million to the family from his shop at Bhangal in Budhanilkantha Municipality.
“In the past, he seemed honest,” Chand told the Post at the District Police Range Kathmandu on Sunday. Ramesh had convinced the couple that he needed the money to expand his furniture warehouse.
“He even promised to sign a loan contract, but as we trusted him, we provided him the money without a contract, as we needed more furniture for our new house,” said Chand.
After a month, she went to the NIC Asia Bank at Gongabu to cash the cheque Ramesh had given.
To her disbelief, the cheque bounced. When she tried to contact Ramesh, he was unreachable. She started inquiring about him and came to know that Ramesh had similarly duped 15 others in the area and was now untraceable.
“We came to know that Ramesh only had a small share in the furniture business,” said Chand.
Five months ago, Pradip Khatri, 31, who lived in the Pepsi Cola area, gave Rs500,000 to Hari Prasad (name changed), a real estate broker. Hari had promised to return the sum to Khatri after transferring the ownership of a piece of land to another person, in a month’s time.
He told Khatri the transfer process had already begun and that he would get his money back within weeks.
Khatri knew Hari through one of his relatives and they had met regularly for a few years as both of them lived in the same area.
“He gave me a signed cheque for the amount I gave him in cash. After a month, I went to the bank to withdraw the money, but there was no balance in his account. Since then, the man has been out of contact,” said Khatri, who owns a business near PepsiCola, Kathmandu.
Chand and Khatri’s examples illustrate a larger problem. Records at the Teku-based Kathmandu District Police Range show
that banking crimes, especially cases of bad cheques, are rapidly increasing in the Valley.
On Sunday, when the Post reached the Teku office, there was a queue of more than 20 people who were there to register complaints against similar banking frauds.
“We are struggling to process all the financial offence cases we are getting,” said Superintendent of Police Dinesh Raj Mainali, spokesperson for the range. Police records show a single cheque of up to Rs210 million has bounced.
As things stand, 3,563 complaints of bad cheques were lodged in the past five months and the police registered 2,529 of them. The unregistered complaints involved cases where the parties had settled disputes through mutual understanding, while the others were of those who had inquired about the process to file complaints.
In the fiscal year 2020-2021, a total of 1,997 cases of banking fraud were registered at the police range.
Half a decade ago, in the fiscal year 2015-2016, only seven cases of banking fraud were registered, while in 2017-2018, there were only 10 such cases filed with the police in the Valley.
After registering the cases, the police issue warrants against alleged offenders based on their preliminary investigation. In some instances, offenders return the money. “But many remain out of contact, so we depute our respective police circles to look after the case in their area,” said Inspector Pratik Singh, deputy in-charge of the Banking Fraud Offence Department at the District Police Range, Teku.
According to the Banking Offence and Punishment Act, 2008, the bouncing of a written cheque three times due to the account holder’s failure to maintain the amount mentioned on the cheque is counted as a banking offence.
If the stated amount is up to Rs1 million, the culprit faces up to a year’s imprisonment. An amount between over Rs1 million and Rs5 million attracts a jail-term of one to two years. For amounts between over Rs5 million and Rs10 million, and above Rs10 million, the jail terms are between two to three years, and three to five years, respectively.
Criminologist Ganesh Bhattarai, who is also a professor at the Kathmandu School of Law, mostly blames the country’s current economic crisis for the increasing number of such crimes.
“There has been an interruption in the flow of money since the Covid-19 pandemic. The real estate business has also faltered, driving many business people into huge losses,” said Bhattarai.
“Getting rid of creditors by giving them a bad cheque is their way of avoiding a difficult situation,” he added.
Mainali, the spokesperson for the police range, agreed that the main reason for the soaring number of cheque bounce cases is the ongoing economic crisis.
“Yes, a few people involved have been found to be ignorant, who did not know the gravity of their crimes, but many are doing so intentionally, and looking for ways to earn a quick buck by deceiving people with post-dated cheques.”
According to the Teku-based Banking Fraud Offence Department at the District Police Range, of the total cheque fraudsters, over 93 percent admit to acting intentionally.
Mainali added: “I request people to keep their bank cheques safe and issue a cheque only when they are sure their accounts have the amount mentioned.”
Meanwhile, Chand, who has already visited the Teku police office three times to request the police to nab Ramesh, said she never knew she would have to go through such an ordeal.
“This is a big financial loss for my family,” said Chand. “Earlier, I thought I was the only person who had been cheated, but when I came to file a complaint with the police, I was surprised to learn that so many others had been similarly duped.”