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The 40th MCA-Nepal Board meeting held on 6 March 2024, decided to advance the 18 km Nepal portion of the Butwal-Gorakhpur power transmission line on a priority basis by separating it from the larger 315 km transmission line. 

The Board determined that expediting the cross-border section will help to meet the obligations of the cross-border power trade agreement between Nepal and India. “MCA-Nepal Board made this determination collectively owing to the critical importance of this segment to the Government of Nepal and the Nepal Electricity Authority (NEA). 

The separation of the 18 km segment from the larger transmission line network will enable a quicker procurement process and its implementation in order to ensure that the line is completed on time by May 2026 to connect with the lines under construction on the Indian side of the border.” shared Nabin Raj Singh, Joint Secretary and Spokesperson at the Ministry of Energy, Water Resources and Irrigation post the Board meeting. The cross-border transmission line is a critical component of the Electricity Transmission Project and will facilitate cross-border electricity trade to meet Nepal’s needs. In Oct 2019, both the Governments of Nepal and India agreed to the financing and ownership framework that will govern the implementation of the New Butwal – Gorakhpur cross-border transmission line.

For the remaining 297 km transmission line, MCA-Nepal continues to work to procure the services of design-build contractors to complete the construction of the transmission lines within the agreed timeline. MCA-Nepal remains committed to ensuring the transmission lines are built on time, within budget, and in accordance with GoN and MCC’s environmental and social standards, says a statement issued by MCA-Nepal. 

The Nepal Stock Exchange (NEPSE) gained 13.51 points to close at 2,030.55 points on Thursday.

Similarly, the sensitive index surged by 1.90 points to close at 360. 27points.

A total of 8,929,152-unit shares of 309 companies were traded for Rs 3. 19 billion.

Meanwhile, Peoples Hydropower Company Limited (PHCL) was the top gainer today, with its price surging by 10. 00 percent.

Likewise, NIC ASIA Growth Fund-2 (NICGF2) was the top loser as its price fell by 6.21 percent.

At the end of the day, total market capitalization stood at Rs 3. 19 trillion.

The newly appointed Finance Minister Barshaman Pun faces an uphill task of bringing the country’s economy back on track. Over the past year, despite the positive growth in some indicators such as remittances and tourism, there hasn’t been any substantial growth. Pun, who is not a new face in the Finance Ministry, made his name as a pragmatist when he last led the ministry. 

Born in 1971 in mid-western district Rolpa, Pun has held various ministerial positions after his party, CPN (Maoist Center), joined mainstream politics after signing of the Comprehensive Peace Agreement in 2006. As a key interlocutor of the peace and constitution drafting process, he played a pivotal role in Nepal’s peace and constitution drafting process. In the first Constituent Assembly(CA) elections in 2008, he was elected from Lalitpur-1. In 2011, he was appointed the finance minister in the Baburam Bhattarai-led coalition government. Initially Bhattarai faced criticism for bringing in an inexperienced figure to lead the Finance Ministry, but Pun proved the critics wrong by successfully leading the ministry for more than 18 months, although he didn’t get the opportunity to plan and endorse the budget. 

As a finance minister, Pun took a series of measures to systematize the foreign direct investment and diversify Nepal’s loan policy. He introduced 18 national pride projects and took measures to expand the roads in Kathmandu. In this period, Pun also built a working relationship with various national and international stakeholders and economists. 

Pun’s second ministerial stint was with the Ministry of Energy, Water Resources and Irrigation. Under his leadership, the ministry unveiled a white-paper on Nepal’s energy sector and prepared a long-term vision. He also signed an agreement with Bangladesh for power trade, which has now been materialized. 

Pun’s track record as a minister has been impeccable, but this time he is joining the Cabinet at a critical moment. He has entered the office just as the Finance Ministry is preparing the annual budget, something which he could not do during his previous tenure. 

Pun also has the challenge of increasing revenue, controlling expenditure, and directing public expenditure toward priority projects that support growth. He must also resist the temptation to invest in populist programs.  

The budget should aim to maintain a balance between government income and expenditure to alleviate mounting pressure on public finances. Moreover, it should strive to achieve high economic growth and job creation, and bring policies and programs to create demand in the market to give a new impetus to the economy.

The price of gold has increased by Rs 1,500 per tola in the domestic market on Thursday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 125, 000 per tola today. It was traded at Rs 123, 500 per tola on Wednesday.

Similarly, tejabi gold is being traded at Rs 124, 400 per tola. It was traded at Rs 122, 900 per tola.

Meanwhile, the price of silver has increased by Rs 30 and is being traded at Rs 1,470 per tola today.