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Power Crisis Looming? Nepal's Mighty Energy Regulator Paralyzed as Government Purges Top Leadership!

Nepal's Electricity Regulatory Commission has been left leaderless following a government ordinance that removed all its officials, halting critical processes like IPO approvals and tariff adjustments.

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Power Crisis Looming? Nepal's Mighty Energy Regulator Paralyzed as Government Purges Top Leadership!

Nepal's powerful energy sector regulator, the Electricity Regulatory Commission (ERC), is currently without leadership. This situation arose after all commission officials were collectively removed from their positions following the government's issuance of the 'Special Provision Ordinance on Removal of Public Officials, 2083.' According to a notice from the Ministry of Energy, Water Resources, and Irrigation, the officials were automatically relieved of their duties under Section 2 of the ordinance. Those removed include Chairman Dr. Ram Prasad Dhital and members Dr. Madhusudan Adhikari, Dr. Jhamak Prasad Sharma, Gautam Dangol, and Bhagirathi Bhattarai Gyawali. The absence of leadership poses a significant risk to the energy sector, as policy and administrative functions are directly impacted. The commission plays a vital role in hydropower development and investor protection. Currently, critical tasks are at a standstill, including electricity tariff adjustments which affect both consumers and producers. Additionally, the process for hydropower companies to obtain 'pre-approval' for public share (IPO) issuances has been halted. Disputes regarding Power Purchase Agreements (PPAs), legal hearings, and the financial management of new projects are also expected to face delays. The current government, led by Prime Minister Balendra Shah (Balen), has indicated a policy of appointing experts based on experience and merit through a competitive application process. Stakeholders are urging the government to appoint leadership with deep expertise in energy economics, technical aspects, and legal complexities to prevent negative impacts on private sector investment. While the selection process is expected to begin soon, the timeline for the new appointments remains uncertain.

Nepal Rastra Bank Publishes Thursday's Foreign Exchange Rates; US Dollar at Rs. 149.61

Nepal Rastra Bank (NRB) has published the official foreign exchange rates for Thursday. The buying rate of one US dollar has been fixed at Rs. 149.61 and the selling rate at Rs. 150.21. The British Pound Sterling has recorded the highest value among the major currencies listed, with a selling rate of Rs. 200.16.

Gold Price Plunges by Rs. 5,900 Per Tola on Dhanteras; Silver Also Declines

Gold and silver prices recorded a sharp decline in the Nepali market on Friday, Kartik 20, coinciding with Dhanteras. Gold fell by Rs. 5,900 per tola to Rs. 283,000, while silver dropped by Rs. 110 per tola.

Nepal's VAT Collection Exceeds Target as Consumer Reward Scheme Boosts Tax Compliance

Nepal's VAT collection exceeded its first-quarter target in FY 2083/84, reaching Rs. 41.04 billion, up 10% compared to the same period last year. The increase comes after the Inland Revenue Department introduced a consumer reward scheme encouraging people to demand bills when making purchases.

Nepal Estimates $5 Billion Needed for Reconstruction After Bhotekoshi-Trishuli Disasters

Finance Minister Dr. Swarnim Wagle has estimated that Nepal will require approximately $4.7 billion to $5 billion for reconstruction following the disasters in the Bhotekoshi and Trishuli regions. The government is preparing a phased financing plan, including financial support from India, China, the World Bank and the Asian Development Bank (ADB).

Maya Khola Hydropower's Net Profit Surges 124.52% to Rs 6.38 Crore in Q1

Maya Khola Hydropower Company Limited (MKHC) has reported a 124.52 percent increase in net profit, earning Rs 6.38 crore in the first quarter of FY 2083/84, compared to Rs 2.84 crore in the same period last year. Higher electricity sales revenue and lower interest expenses supported the company's improved profitability.

Khani Khola Hydropower Turns Profitable, Reports Rs 3.65 Crore Net Profit in Q1

Khani Khola Hydropower Company Limited (KKHC) has made a remarkable financial turnaround, reporting a net profit of Rs 3.65 crore in the first quarter of FY 2083/84, compared to a net loss of Rs 1.89 crore in the same period last year.