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The northern border crossing with China at Tatopani has fallen far short of its revenue target in the first four months of the current fiscal year, collecting only Rs 4.28bn.

According to Chief Customs Officer Rajendra Prasad Chundal, the revenue target for Tatopani this fiscal year is Rs 24.47bn, but only 17.52 percent has been achieved so far. He said revenue collection has suffered due to China’s strict restrictions on container movement and frequent road blockages caused by landslides.

The Customs Office reported that revenue collection stood at Rs 859.92m in July, Rs 791.89m in August, Rs 1.43bn in September, and Rs 1.2bn in October. Once a major contributor to the national economy—collecting up to Rs 5bn annually—Tatopani’s revenue sharply declined after the 2015 earthquake.

“Even when the Kerung border was operational, 25 to 30 containers used to enter through Tatopani daily,” Chundal said. “Now, with the border closed, the number of containers entering Tatopani has decreased instead of increasing.” He added that discussions are ongoing with the Chinese Consulate General, Nepal’s Customs Department, the Chief District Officer, and Chinese authorities to facilitate smooth imports. “We are engaging with both governments to ensure uninterrupted imports through Tatopani, which is currently the only option,” he said. “But the results are still not visible. China does not seem interested in sending goods.” According to him, although some goods arrived after Tihar, only a small number of containers have been entering recently.

Business owners say more than 500 containers have been stuck on the Chinese side since before Dashain due to delays in inspections by Nyalam Customs of the Tibet Autonomous Region. Goods shipped as early as mid-July are still held in Tibetan territory. “We are in serious trouble because goods ordered for the festival and winter seasons have not arrived on time. Our investments are at risk,” said local businessman Nawaraj Timilsina. He noted that only 12 to 15 containers have been entering daily on average.

Before Dashain, Nyalam Customs stopped sending containers, citing landslides and safety risks at the Tatopani border. However, traders say Chinese officials are still delaying inspections and dispatches despite clear weather and open roads. Ishwar Gubhaju, General Secretary of the Sindhupalchowk Chamber of Commerce and Industry, said that nearly 1,000 containers are stuck between Khasa and Lhasa.

Tatopani Customs Office information officer Tul Bahadur Pandey confirmed that imports have been decreasing. “The number of containers before Dashain and now is almost the same,” he said. “The low arrival clearly reflects weaknesses on the Chinese side. We have not reduced our inspection capacity or services for traders.”

Businesspeople said that while perishable goods such as apples, grapes, garlic, avocados, and kiwis were cleared before Tihar, electronic items and other merchandise have yet to arrive. Some traders suspect China is deliberately delaying shipments to Nepal, suspecting Nepali traders of supporting pro-Tibet groups.

Chundal said many goods remain stuck in China. “We spoke to Chinese officials after traders complained. They cited traffic congestion due to major construction work on a new city,” he said. Chinese authorities reportedly told them that congestion has intensified because only one lane is functioning.

Tatopani Customs has also reported that Chinese officials will allow electric vehicles to enter Nepal only two days a week, citing reconstruction work in the Khasa market. According to Funu Sherpa, President of the Bhotekoshi Chamber of Commerce, reconstruction in Khasa—including demolition of structures and road expansion—is progressing rapidly. “It appears the reconstruction has sped up, with roads widened by three meters and separate zones being built for private and government structures. Heavy containers and vans are being restricted from entering the main town,” Sherpa said.

Meanwhile, a delegation from the Nepal Truck Transport Entrepreneurs’ Federation met with Bhrigu Dhungana, Joint Secretary at the Ministry of Foreign Affairs’ China Division, and Deputy Secretary Manahari Dangal, urging them to facilitate the entry of more than 300 truck containers stuck across the Kerung River before the construction of a new bridge begins. “They have committed to taking the initiative with the Chinese government,” said Arjun Bahadur Sapkota of the federation.

Chief District Officer Bandhu Prasad Bastola of Sindhupalchowk said discussions are underway with Nepal’s Consulate General in Lhasa and officials in Beijing following repeated complaints from traders. “Local-level Nepal–China officials will hold a coordination meeting in November, during which formal talks on container inspections will be held,” he said.

After a long wait, the 102-megawatt Bhotekoshi Hydropower Project in Sindhupalchowk has started trial production. The project, whose main generator is operated by Chilime Hydropower Company, a subsidiary of the Nepal Electricity Authority (NEA), began production following the successful testing of its transmission line last week, according to Ram Gopal Siwakoti, CEO of Bhotekoshi Hydropower Company.

The trial production began with one of the project’s three turbines. “Since the Bahrabise substation is not yet ready, we have been testing electricity via the Khimti substation on a line connecting it to the power house in central Bhotekoshi since last week,” said Siwakoti. “Despite many challenges, we have now succeeded in generating electricity.”

As work on the Bahrabise substation continues, electricity generated at Bhotekoshi is currently transmitted to the new Khimti substation via a 40-kilometer transmission line. “After a few days of testing, electricity will be connected to the national grid, and regular production will begin,” said Siwakoti, noting that revenue will start once it is linked to the national transmission line.

Construction of a two-kilometer section of the approximately four-kilometer transmission line connecting the project’s switchyard in Bahrabise Municipality-5 to the NEA’s Bahrabise substation in Municipality-3 is underway after reaching an agreement with local residents. The 220 kV single-circuit transmission line is expected to be completed before Dashain. Plans are in place to connect the generated electricity to the national grid via the Dhalkebar substation.

Siwakoti expressed confidence in the project’s trial production, saying it is expected to be 99 percent successful. Last year, a tunnel leak occurred when water was first sent through the 7.5 km tunnel, which runs from the dam in Chakuma, Bhotekoshi Rural Municipality (bordering China), to the power house in Jambu, Bahrabise Municipality.

The project was initiated in 2013 by former CEO Kulman Ghising with a target completion date of 2017. Delays were caused by local disputes, Covid-19, floods, landslides, and earthquakes. “We have brought Bhotekoshi, which was almost a failure, to a production-ready state,” said Siwakoti.

Once in regular production, the project is expected to generate 542.2m units of electricity annually. The NEA will purchase electricity at Rs 8.4 per unit in winter and Rs 4.8 per unit during the rainy season, generating annual revenue of approximately Rs 2.8bn for the company. The cost of electricity generation per megawatt is estimated at Rs 220m due to increased investment. During the dry season, the project will generate a minimum of 35 MW, while production could reach up to 110 MW during the rainy season.

The project’s initial estimated cost was Rs 12.28bn, excluding interest during construction, but the updated cost is Rs 16bn. Delays have resulted in daily interest payments exceeding Rs 5m.

The company’s ownership is split between founder shareholders (51 percent) and common shareholders (49 percent). Founder shareholders include NEA (10 percent), Chilime Hydropower Company (37 percent), Sindhupalchowk Hydropower Company (one percent), Nepal Araniko Hydropower Company (one percent), Sindhu Investment Company (1 percent), and Sindhu Bhotekoshi Hydropower (one percent). Common shareholders include Employees Provident Fund employees (19.5 percent), founding corporate body employees (3.5 percent), lending organization employees (one percent), Sindhupalchowk residents (10 percent), and the general public (15 percent). The company has already raised funds by issuing common shares.