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Laxmi Acharya is a popular folk singer from Tikapur, Kailali. She started her musical career in 2013, and over the years she has recorded more than 150 songs. Many of her tunes can be categorized under Deuda genre, which comes from far-west Nepal. ApEx caught up with Acharya to discuss her musical journey and future plans.  Could you tell us about your journey so far? I have been working in this field for a decade, and I feel like I’m just starting out. There are still many things that I want to achieve for myself and my community. As a singer, I believe it is my duty to promote Nepali folk music and culture both within the country and outside. How much of an impact do you think your songs are making to promote the culture of the far-west? I want to believe that my songs have had a positive impact when it comes to promoting the culture and tradition of my region. I can only hope that my songs can one day serve as an archive of Deuda culture. After all, Deuda songs are more than just songs, they are also a rich source of information for anyone looking to learn more about our culture, history and tradition.  What are the immediate measures you think we need to take in order to promote this culture? There are many ways to do so. In today’s era of technology, we can disseminate information in different forms and formats. We need to incorporate Deuda culture in every platform, from school curriculums to social media. Also, local governments, politicians and political parties need to step up in order to preserve our indigenous history and culture.  What role do you think political parties play in promoting Nepali culture? Although their effort is minimal, political parties can play a vital role in promoting Nepali culture. We have politicians like Sher Bahadur Deuba from the far-west, who with his position could contribute a lot to promote the Deuda culture. There are other leaders too. If only they could give this issue a little bit of time and attention, I think we could draw a lot of national and international attention to Deuda culture.  The far-west region is rarely considered the center of arts, culture and development, even though the region has an incredibly rich heritage. Why do you think this is?   I think we are falling behind when it comes to promoting our culture and traditions.  We need more studies and research in various cultures and traditions from Karnali and Sudurpaschim provinces. Till now, there aren’t any comprehensive studies done in this field. Our publicity campaigns have also not been as effective because there aren’t enough texts or literature to refer to. 

Devendra Gautam of ApEx caught up with water resources expert and former minister for water resources, Dipak Gyawali, to discuss Nepal-India water relations and the way forward.  What’s your take on major river deals with India? Indian scholars, including those from Bihar and Uttar Pradesh, have said this previously… India first decides that it needs this or that river and then imposes a treaty/agreement on Nepal. Besides, a treaty/agreement should be read in its wider political context, whether it’s the Treaty of Sugauli or the 1950’s Peace and Friendship Treaty.  Nepal entered into the Koshi Agreement after the overthrow of the Rana regime in the 1950’s. That was during the premiership of Matrika Prasad Koirala. The year 1958 saw Nepal under the premiership of BP Koirala signing the Gandak Agreement with India. These deals happened despite protests in Nepal.  For about 30 years of the Panchayat regime, no such treaty/agreement happened with India. In fact, the regime of King Mahendra revised some of the unequal provisions of the Koshi and Gandak agreements through talks with India.  King Birendra was under tremendous pressure from India to give away the Karnali river, but he did not budge. After the political change of the 1990’s, the first thing that the democratically-elected government of Girija Prasad Koirala did was secretly sign the much-controversial Mahakali Treaty with India.  Nearly 25 years after the Mahakali Treaty, the promised dawn of national prosperity is not even on the horizon…….. In the case of the Mahakali, the Supreme Court under Chief Justice Vishwanath Prasad Upadhyay could have nixed this legal instrument while the ball was in the court. The court could have ordered the passage of this instrument with a simple majority instead of a two-third majority in the parliament. But in a back and forth, the court sent the treaty back to the parliament, which subsequently passed it with a two-third majority, courtesy of the Sher Bahadur Deuba-led Nepali Congress government, the Rastriya Prajatantra Party of the Panchas and the CPN-UML.  The Krishna Prasad Bhattarai-led NC government, formed after the success of the 1990’s movement, had faced Indian pressure to enter into the Mahakali Treaty. But the diplomat that he was, Bhattarai told the Indians that his sole agenda was to deliver the country a democratic constitution.  However, Prime Minister Girija Prasad Koirala took the matter in his own hands after the Congress got a two-third majority in the democratic elections held after the 90’s movement. During a visit to India, he signed the legal instrument secretly.    Initially, the UML was against this treaty and had staged demonstrations against it. But as the then prime minister, Sher Bahadur Deuba of the Nepali Congress, took it upon himself to get this legal instrument a House nod, the UML balked and played a role in the ratification of the treaty along with the Rastriya Prajatantra Party of the Panchas.  What’s more, the Madhav Kumar Nepal-led government of the CPN-UML harmed Nepal’s interests further by entering into a package deal with India by including the development of the Pancheshwar Project.      Let’s revisit the background of this treaty. India had already constructed the Tanakpur barrage, along with a left afflux bund on a patch of highland on the Nepali territory, to divert Mahakali waters into the Sharada canal. India had also built the Tanakpur barrage and wanted the Panchayat regime to rubber-stamp this act. But the regime refused to do this. That was one of the reasons behind the abolition of the king-led Panchayat regime in the 90’s and straining of India’s relations with the monarchy.  While defending this legal instrument despite public protests against the same, politicians of the time, including Sher Bahadur Deuba of the NC, KP Sharma Oli of the CPN-UML and Prakash Chandra Lohani and Pashupati Shumsher JBR of the Rastriya Prajatantra Party, had declared that the Sun would rise from the West, that Nepal would get trillions of rupees, with the implementation of this instrument…… That has not happened even 26 years after the signing of the treaty.  There’s room for improvement in such treaties/deals? There surely is. Take the case of the Mahakali Treaty. It has a provision for revision every 10 years. But none of the leaders have bothered to press for a revision in Nepal’s favor all these years. This is because such a move will leave them red-faced as none of their promises—a new dawn from the west, earnings of trillions of rupees every year—have materialized.   Instead of seeking the revision of existing deals, successive governments have inked fresh deals over Arun, West Seti and Upper Karnali rivers….. In the 1990’s, there was a plan to develop the Arun III hydropower project for domestic consumption. We protested the project citing financing arrangements that would have pushed project costs over the roof. Eventually, the World Bank withdrew from the project. There’s a need to keep in mind the fact that we were not against the project per se, our protest was against the terms of financing that would have made the project one of the costliest when it came to per unit cost of power generation…..  What’s the controversy over the Upper Karnali project? As for the Upper Karnali project, the Supreme Court has issued an interim order (November 3 2022), putting on hold the agreement based on which the Indian promoter company Gandhi Mallikarjun Rao (GMR) was planning to sell 500 MW to Bangladesh after completing the construction of the 900-MW Upper Karnali Project. This is a welcome development. The Karnali is a highly lucrative project. The Karnali-Chisapani basin has the capacity to generate thousands of megawatts of hydroelectricity, that too at cheaper rates. Development of the 900-MW project seems to be intended to capture the whole river system. Upstream, for example, in rivers like the Tila and Jawa, which drain into the Karnali river system, there are small projects. The 900-MW project will render the future of projects predating it uncertain. This way, the project is indeed aimed at getting hold of the entire river system. We need some of the projects for domestic consumption as well. Karnali is one among such projects. Also, there’s a need to keep in mind the fact that the developer interested in the Upper Karnali project has questionable credentials.  As for the 750-MW West Seti and 450-MW Seti VI projects, the Indian state-owned company, NHPC Limited, has plans to develop them. One more thing: Power transmission to India should happen through national transmission lines and the government itself should invest in the development of such lines. It should not allow a foreign company/entity to also construct its own transmission line within the Nepali territories for cross-border transmission of electricity. Does our political leadership, regardless of its hue and shades, have the spine to say no to projects if they tend to harm our interests? No, it doesn’t. Recently though, Bhutan said no to the Indian proposal to develop the Sunkoshi project. This example should inspire us to put our national priorities first.  Nepal seems to be going the way of Laos, the ‘battery charger of Southeast Asia’ …..  No, this is far from the case. Laos is way smarter than us. After developing hydropower projects needed for domestic consumption, Laos has stopped venturing into more hydels. Also, unlike Nepal, Laos does not have the flatlands, so it does not have to worry about the plains going under the water because of a dam-based hydel. As for the Indians, they are very clever, they take their national interest seriously. When it comes to water-sharing arrangements with Nepal, they refuse even to abide by the Helsinki Convention, leave alone the guidelines of the World Commission on Dams.  Each water treaty/deal with Nepal is unique is what they say. On the other hand, we are not clever, we do not have a vision regarding the utilization of water resources for our own good. Our political leaders of different hues and shades do New Delhi’s bidding for the hospitality received during political struggles by entering into deals that serve India’s interests.  That is why, perhaps, Indian officials and experts say of the Nepali people (I have often heard them make this remark): Achchhe log hein, par bevkuf hain (The Nepalis are good people, but they are fools).  We have a suppressed demand for energy. Despite this, we are talking about exporting the green energy—hydroelectricity—not only to India, but also to Bangladesh……  Yes, per household power consumption in India is 1200 MW, whereas in Nepal it’s barely 300 MW. Instead of focusing on increasing the consumption of green energy, we are talking about exporting it.  This, despite several studies pointing at multiplier effects associated with domestic consumption of hydroelectricity. Domestic consumption of 1 cent of electricity yields a benefit of 86 cents, per a USAID study.    For Nepal, India is a monopsony market, meaning that Nepal cannot command price for its green energy in the Indian market. This is because per unit hydropower generation cost in Nepal is higher than in India and other countries. We cannot sell it cheap, given a high cost of power generation. Ethiopia is constructing the (6,450-MW) Grand Ethiopian Renaissance Dam on the Blue Nile at far cheaper rates. Why can’t we do the same? Per unit power generation cost should be more or less the same around the world. Why does this not apply to Nepal?  About the prospects for exporting hydropower to Bangladesh via India…. I remember interacting with India’s former Foreign Secretary Muchkund Dubey. In such interactions, Foreign Secretary Dubey used to show India’s willingness to purchase hydropower generated in Nepal. But the high cost of generation of hydropower in Nepal is a factor that cannot be discounted while talking about the export of hydropower.  Flood control is the topmost priority for Bangladesh. As for water and sources of energy, it has enough of them, natural gas and all. I have said during interactions with Bangladeshi experts and officials that your country wants to export flood to Nepal throughout the year by investing in the construction of dam-based hydels. If such projects materialize, Nepali territories coping with seasonal floods and inundation will have to deal with floods and inundation all year round. Even this is okay, I say to them, provided they are willing to foot the associated costs, including the cost of inundation of our territories for the sake of protecting Bangladesh from flooding and inundation.   I don’t think India will allow the use of its territories for the transmission of hydroelectricity generated in Nepal to Bangladesh.  Your take on Nepal’s increasing reliance on fossil fuel, whose prices are never stable? While Maoist leader Baburam Bhattarai was in power, he went for the expansion of roads. This move is also behind the increased consumption of fossil fuel in Nepal. Data show that this petroleum addiction has been increasing in the country over the years.  For motorists like me, wider roads are indeed good. But what of the other people? What about the country? Increasing addiction of petroleum products is harmful for the environment and other aspects.  Produced water—water collected in dams and reservoirs by inundating territories and displacing communities—costs worldwide. Are we, by demanding a fair price for produced water, ‘weaponizing water’? India has introduced provisions stating that it will not purchase power generated with Chinese investment. Despite a toughening of stance, India sold the Upper Marsyangdi hydel license to a Chinese company. On the contrary, India is weaponizing water through such provisions, not Nepal, by taking it as a strategic asset. We seem to be focusing on hydroelectricity, not on water for irrigation, navigation, fisheries and drinking while going for harnessing our rivers. We seem to be forgetting that sources of freshwater are very limited in comparison to sources of energy…. Consider, for example, the reservoir-based Budhi Gandaki Project (1,200-MW). This project can irrigate around 1 lakh hectares of farmland down south. It can also irrigate fields across the border. We need to take cross-border benefits into account while developing this project. The project should be built on the basis of cost and benefit-sharing.   With Nepal’s water sovereignty severely weakened, how will the local levels, the provinces and the center fare? Do political leaders discuss this issue with you?      Political leaders do not consult us. In fact, they don’t need to. Our inputs are all there, in the public domain. What they need to do is implement those suggestions. They need to put national interest above all else. 

The process to establish another stock exchange in the country has finally emerged on the horizon with the Supreme Court clearing the way for the Securities Board Nepal (Sebon) to issue licenses to operate stock and commodity exchanges, and stock brokerage firms. Following the court's verdict, Sebon has invited applications from interested parties.

Pratik Ghimire of ApEx talked to Ramesh Kumar Hamal, Chairman of Sebon to talk about the changes the issuance of licenses will bring in the capital market, among other topics. Excerpts:

How is Sebon moving ahead after the Supreme Court cleared the way to issue licenses for new stock exchange and stock brokerage firms?

As soon as the Supreme Court rejected the writ petition, we invited applications from interested parties for a new stock exchange and commodity exchange. As the deadline is over, we will review all the applications and proceed with license issuance as soon as possible. There will be no unnecessary delay from our side. We will provide a written note with reasons to those who have their applications disapproved. 

Why has Sebon deemed the issuance of licenses necessary for the growth of the capital market in Nepal?

As the number of investors in the stock market has surged massively over the last few years, we need more than the existing 50 stock brokerage firms to provide better services to investors and better market practices. This is why, Sebon is also issuing new licenses for brokerage firms. It is also equally important to understand that increasing numbers alone is not sufficient, there should be better corporate governance practices and the firms should play a role in reducing costs for the investors and providing reliable services. 

The rationale behind the new stock exchange and additional brokerage firms is to create a competitive market that will be beneficial to all. I am a strong believer in the fact that without competition, there will be no progress. The new stock exchange is the need of the hour.  I am an advocate of good governance and believe good practices should be maintained in every private and government institution. People who are capable should always get the opportunity to work. The same goes for the security market too. The license is necessary for the growth of the capital market. It will open the doors of opportunity for 30m Nepalis. 

Which areas Sebon is currently focusing on for improvement of the securities market?

Sebon is currently working to maintain good governance in the capital market. We want to ensure investors get prompt services and face no hassles in their capital market dealings. Besides working on issuing new licenses for the stock exchange, brokerage firms, and commodity exchange, we are also bringing small and medium enterprises (SMEs) into the capital market.  We are also working on updated rules and regulations needed for the capital market. There are around 1,200 large tax paying companies in Nepal.

But less than 100 of them are listed in the secondary market. Sebon aims to list at least 400 of them in the next fiscal year, 600 in another fiscal year, and 1,000 within the next five years. The listing of these companies will help the market grow, which ultimately helps the national economy. 

Tell us more about the SME platform that Sebon is planning to introduce.

I have been active for a long time to bring SMEs to the capital market through a separate platform. We can implement it within about two months if everything goes as planned. What we are trying to do through this is to inspire small businesses to come to the capital market. If large companies and small companies are kept in separate indexes, it helps in the overall development of entrepreneurs from every corner of the country. It will then help to increase the size of the country’s economy.

We have done great work in private equity ventures because it is an international practice that is successful across the globe. With the traditional banking system, it is not possible to grow our economy. Hence, the growth of private equity has become important. It will also attract foreign investment. But we don’t have the domain of private equity ventures. We are working on it. 

It’s been over a year since you took the helm of Sebon as the chairman. What challenges have you encountered in this period?

I am very satisfied with my work. There were challenges of course but I faced them because I never compromise on good governance. I will always advocate bringing the world’s best practices. Some people wanted to create hurdles from the day I assumed office by spreading rumors and character assassination.

But I guess they failed. I think investors and other stakeholders trusted me because I have been working by prioritizing investors and markets at the center of everything. I have been utilizing my experience and knowledge from international markets.

What are your major achievements so far?

We brought the C-ASBA charge down to a maximum of Rs 5 which was up to Rs 100 previously. Sebon also worked on a fast-track basis to provide a 10 percent quota for migrant workers in the initial public offerings (IPOs) which has helped to increase the inflow of remittances through the legal channel. We have cleared up confusion regarding the mergers of publicly listed companies.

Now any application for merger/acquisition should be approved within three days through the integrated guidelines. Previously, these cases were suspended for years. We have arranged that the trading of shares of any company going for merger/acquisition should not be suspended for more than 15 days. In the meantime, we made it possible for the process of IPOs to conclude in 15 days.

How is Sebon working to put a stop to insider trading and other manipulative activities in the securities market?

In the 30-year history of Sebon, this is the first time that we have penalized people found guilty of insider trading. We have concluded two such cases and have adopted a zero-tolerance policy regarding the malpractices in the capital. The market will be fairer as insider trading and other manipulative practices will be strongly dealt with.

The Federation of Nepalese Chamber of Commerce and Industry (FNCCI), the apex body Nepali private sector, has recently elected its new leadership. The representatives of FNCCI's district chambers and associate organizations across the country participated in the election. Pawan Prajapati, President of Pokhara Chamber of Commerce and Industry, was in Kathmandu to participate in the FNCCI jamboree.  The entrepreneurs of Pokhara, one of Nepal’s major business hubs as well as tourism centers, have been affected by high interest rates and a slowdown in business activities. 

Pratik Ghimire of ApEx talked to Prajapati regarding FNCCI’s new leadership and issues surrounding Pokhara’s business sector.

What should be the priority of the new leadership of FNCCI at a time when businesspersons across the country are facing multiple problems?

The new leadership of FNCCI has a lot of challenges ahead of it. Of late, the relationship between businesspersons and banks and financial institutions (BFIs) has soured due to high interest rates and a shortage of investible funds in the financial system. There have also been problems with imports and exports.

Hence, FNCCI should focus on creating a friendly environment between the private sector and the BFIs. Since the private and banking sectors are two sides of a coin, the new leadership should work to get out of the current crisis.

The government is working on the next fiscal year’s federal budget. What should be the focus of the upcoming federal budget? 

We expect that the government will incorporate policies in the new budget that would help businesses. The government should create an environment where businesspersons will get loans easily, and that it safeguards local production and promotes exports. It will be better if the government consults with the private sector including FNCCI to make a package plan to reduce the trade imbalance.

As the President of the Pokhara Chamber of Commerce and Industry (PCCI), what are the new initiatives taken by PCCI in recent times?

Our team got elected only seven months ago. We took the leadership of the PCCI during a very challenging time. Yet, we have been working our best to help entrepreneurs. We have been regularly lobbying for a better business environment with the government and authorities concerned. For instance, our team recently met Prime Minister Pushpa Kamal Dahal and gave our suggestions to create a business friendly environment. Also, PCCI has planned to construct a multi-purpose building. It aims to promote the products of the producers of the Gandaki Province under one roof. 

Which business sectors were the worst hit due to the high interest rates and liquidity crunch?

Pokhara is mainly known for its tourism industry. And it is the one that has been hard hit by the current economic recession. If the tourism business surges, all the other sectors in Pokhara will benefit. If our business becomes stable, it will help the national economy. Hence, the government should focus on boosting the tourism industry. And there is a narrative that Pokhara only has Fewa Lake and Mt Machhapuchhre. But we must work to establish more tourist attractions and destinations.

What is PCCI doing for tourism entrepreneurs?

PCCI has not waited for the government to act, but we have been working on our own to invite tourists. A team of tourism entrepreneurs from Pokhara is currently in Patna, India to promote Pokhara tourism. Tourists should not be forced to visit Nepal. It won’t help a bit. We should create an environment for them to come to Nepal on their own. However, this is not possible only with the efforts of PCCI. The FNCCI should have the same voice and the new leadership should help us with this.

Entrepreneurs in Pokhara held high hopes from the Pokhara International Airport. However, international airlines are yet to show any interest in the airport. What’s your say about this?

We have a lot of expectations from Pokhara International Airport, and we have requested the Prime Minister to seriously work on bringing international airlines to the airport as soon as possible. I hope the upcoming visit of the Prime Minister to India will give it a breakthrough. It will not only help Pokhara but the entire Gandaki Province. PCCI played a leading role in establishing the international airport. And if the government fails to start international flights from Pokhara, we will lobby to bring international airliners to the airport.

How much time do you think it will take for the economy to come out of the recession?

The Covid-19 pandemic, issues related to BFIs, and the Russia-Ukraine war affected our economy a lot. But the situation is gradually getting normalized, yet there is a long way to go. The Nepal Bankers' Association has also said that they will reduce the interest rate to single digits.  If everything goes well, I guess the situation will be normal in a couple of months. The finance minister has said the same. We are ready to do everything at our disposal to revive the ailing economy.