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The price of gold has dropped by Rs 500 per tola in the domestic market on Tuesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow bullion is being traded at Rs 105, 800 per tola today. The yellow metal was traded at Rs 106, 300 per tola on Monday. Meanwhile, tejabi gold is being traded at Rs 105, 300 per tola. It was traded at Rs 105, 800 per tola. Similarly, the price of silver has remained unchanged and is being traded at Rs 1,365 per tola today.

The development of cross-border transmission lines tops Nepal's agenda as the country's top energy officials sit down with their Indian and Chinese counterparts next month for bilateral meetings. Energy sector officials of the government are planning to discuss constructing two new high-capacity cross-border transmission lines during the meetings of the joint secretary-level Joint Working Group and the secretary-level Joint Steering Committee, both scheduled to be held in New Delhi on February 17-18. According to Madhu Prasad Bhetuwal, Spokesperson of the Ministry of Energy, Water Resources and Irrigation (MoEWRI), the ministry is currently working on the agendas to be presented by Nepal in the 10th meeting of the JSC. A ministry source close to the matter said that Nepal will propose to construct two more cross-border l transmission lines between Nepal and India in the meeting. Currently, the 400KV Dhalkebar-Muzaffarpur Cross-border transmission line is the only high-capacity power line for power trade between the two countries which can transmit around 1,000MW of electricity at a time. Nepal and India have already moved ahead to develop the New Butwal-Gorakhpur Transmission Line which will have a capacity of transporting power as much as 3,500MW. Nepal Electricity Authority (NEA) and Indian Power Grid Corporation have established a joint venture company in India to construct this transmission line in the Indian territory. According to the MoEWRI official, Nepal will propose the construction of two additional 400 KV cross-border transmission lines - Inaruwa-Purnia and New Lamki-Bareli, in the upcoming meeting. With more power coming to the national grid in the current fiscal year and next fiscal year, there is an urgent need to initiate the construction of more cross-border transmission lines between the two countries to enable more power export from Nepal to India. "As Nepal will have more power to sell to India during the wet season, reliable infrastructure for cross-border transmission of power has become necessary," said the official. According to NEA, over 700MW is expected to be added to the national grid in the current fiscal 2022/23 while over 550MW is expected to be added in the next fiscal year 2023/24. Officials said it was necessary to export more power in the upcoming days to prevent power from being spilled. India has allowed Nepal to sell 452.6MW of power generated by eight hydropower projects in India’s energy market. NEA exported electricity worth Rs 11.16 billion to India beginning June last year until it stopped the exports in the third week of December last year owing to falling production. Similarly, Nepali and Chinese officials will be holding a third round of discussions regarding the development of the Nepal-China Cross Border Transmission Line in the last week of February. According to Energy Ministry, the Chinese side has already proposed a visit by a Chinese team to Nepal in February. The meeting of the Joint Technical Group will discuss the Ratamate-Rasuwagadhi-Kerung Transmission Line Project. The NEA has already completed a feasibility study of the 400 KV transmission line connecting Nepal and China. According to Komal Nath Atreya, Chief of the transmission line project, currently, an environmental study of the transmission line is being carried out. NEA Engineering Company, a subsidiary of NEA, is taking charge of the environmental impact assessment (EIA) of the project. Officials said the 70km project which can carry 5,000MW of electricity would open the door for power trade between Nepal and China. The proposed 400 kV transmission line from Ratamate (Nepal) to Kerung (China) will form a basis for power trading between Nepal and China in the years to come, according to NEA. “As India does not buy electricity generated by projects where Chinese investors and contractors are involved, this project will be vital for attracting Chinese investment with the objective of selling power to the northern neighbor,” said the NEA official. Atreya said the upcoming Nepal-China meeting will discuss various issues regarding the cross-border transmission line including the DPR of the project, modality of investment, and other issues. The Nepal section of the trans-Himalayan transmission line will have a length of 70 km and 212 towers. The feasibility study of the project has shown that an investment of Rs 13 billion is required to build the transmission line of the Nepal section.

The Nepal Stock Exchange (NEPSE) plunged by 41. 16 points to close at 2, 127.37 points on Monday. Similarly, the sensitive index dropped by 7. 33 points to close at 402. 98 points. A total of 8,836,488 unit shares of 256 companies were traded for Rs 3. 30 billion. Meanwhile, Lumbini General Insurance Co. Ltd and Adarsha Laghubitta Bittiya Sanstha Limited were the top gainers today with their price surging by 10. 00 percent. Likewise, United IDI Mardi RB Hydropower Limited was the top loser with its price dropped by 7. 14 percent. At the end of the day, the total market capitalization stood at Rs 3. 06 trillion.

The Nepal Rastra Bank (NRB) has allowed companies operating in Nepal to borrow foreign loans but has barred the investment of such loans in housing, real estate, and the share market. By amending the Foreign Investment and Foreign Loans Management Bylaws 2021, the central bank imposed certain restrictions on investing in foreign loans but has also introduced a number of flexible arrangements to ease the hurdles for firms to borrow money from abroad. According to an amended set of bylaws, no movable or immovable property can be used as collateral or bank guarantee to receive foreign loans except those as determined by the central bank. According to the new arrangement, no third party can be involved in the transaction between foreign lenders and Nepali borrowers. “No third party can receive the loan borrowed by a Nepal-based enterprise,” states the amended Bylaws. As foreign loans should be repaid in foreign currency exchange, the central bank has remained cautious about freely allowing the private sector to take foreign loans. The government and NRB adopted strict import control measures last year due to depleting foreign exchange reserves amid fear of the country heading towards the 'Sri Lanka way'. As a result, the government is struggling to meet its revenue target in the current fiscal year amid the reduced imports. However, NRB has come up with flexible arrangements to allow Nepali borrowers to pay more interest rates for foreign loans. For example, a firm or an industry (other than banks and financial institutions) can now pay an interest rate equivalent to a one-year benchmark interest rate plus six percent per annum while borrowing from foreign banks and financial institutions as well as foreign government entities. Earlier, such a borrower could pay an interest rate equivalent to a one-year benchmark interest rate plus 5.5 percent per annum. While borrowing from non-resident Nepalis (NRNs) abroad, the maximum interest rate that a Nepali firm or individual can pay is a one-year benchmark interest rate plus two percent per annum which was an earlier one-year benchmark interest rate plus 1.5 percent per annum. Similarly, a company with foreign investment operating in Nepal can now borrow up to 100 percent of the paid-up capital from its parent company. Earlier, it was restricted to 60 percent of the paid-up capital. Such companies can also pay an interest rate as high as a one-year benchmark interest rate plus 3.5 percent per annum, up from a one-year benchmark interest rate plus a three percent additional rate per annum earlier. Meanwhile, NRB also allowed foreign investors to record their FDI details at the central bank by mid-January 2024. Likewise, companies bringing foreign loans can also record such borrowings by mid-January 2024. Nepal’s Foreign Investment and Technology Transfer Act has permitted bringing both FDI and foreign loans. The central bank has also been encouraging the private sector to borrow foreign loans under certain criteria. As per the amended Bylaws, foreign investors and borrowers of foreign loans are required to submit applications for keeping their records to the central bank within six months after the foreign exchange enters the country either in the form of investment or loans. “If foreign exchange brought either in the form of investment or loans has not been recorded so far, those bringing the foreign money can now do so within mid-January 2024,” states the Bylaws. Such investments of loans that were brought in the past without the approval of the central bank can now be recorded within the new deadline. According to the NRB, those bringing foreign money need to apply in a prescribed format.