Private energy entrepreneurs in Nepal have taken to social media, protesting the government’s decision to introduce the ‘Take and Pay’ (Liu Ra Tir) system for electricity purchase agreements (PPA) in the new fiscal year budget.

Under this system, the government would only pay for the electricity it uses, instead of paying for the total electricity generated by hydropower projects. Entrepreneurs argue this move could severely hurt the private sector, discourage investment, and push the country back toward power shortages.

Online Campaign Targets Top Officials

Energy producers are now directly appealing to key government figures. They have publicly tagged Prime Minister Pushpa Kamal Dahal, Finance Minister Barshaman Pun, Energy Minister Shakti Bahadur Basnet, and NEA Executive Director Kulman Ghising on social media, urging them to withdraw the Take and Pay provision.

This digital campaign comes just days after developers handed over a memorandum to the Prime Minister and bombarded top officials with hundreds of SMS messages requesting the same.

Why Are Entrepreneurs Worried?

Entrepreneurs claim that this decision will:

• Weaken the private sector’s role in the energy industry 
• Risk the return of load-shedding (power cuts) 
• Causes financial losses to investors 
• Damage the overall economy 

The Independent Power Producers’ Association of Nepal (IPPAN) has strongly opposed the provision. According to IPPAN’s Vice President and protest coordinator Mohan Kumar Dangi, the policy shift will discourage private hydropower development, especially for Run-of-River (RoR) projects, which are most affected by the new model.

Ongoing Protests and Next Steps

Since Asar 6, private power developers have been staging a phase-wise protest. On the third day of their movement, they moved their campaign to social media to raise public awareness and pressure the government.

Dangi warned that if the government ignores these peaceful efforts, the protests will escalate. Planned steps include:

1. Lobbying political party leaders in Parliament 
2. Launching a nationwide street protest 
3. Returning the keys of privately built hydropower projects to the government — a symbolic act of handing over control 

Background: The Budget Controversy

The controversy started when the budget for FY 2082/83 (announced on Jestha 15) stated that all future PPAs for RoR hydropower projects would be done under the Take and Pay model only. This was a major change from the previous Take or Pay model, where producers were paid even if electricity wasn’t consumed, offering more security for private investors.

Conclusion

The ‘Take and Pay’ decision has sparked serious concerns across Nepal’s private energy sector. Developers fear this could lead to a slowdown in future hydropower investments, and possibly, a return to unstable electricity supply. With pressure mounting both online and offline, the government’s next move will be critical for the future of Nepal’s energy landscape.

Nepal Rastra Bank (NRB), the central bank of Nepal, has announced it will withdraw NPR 60 billion in deposits from the banking system on Monday through a deposit collection auction. This move comes as excess liquidity continues to remain in the banking sector since the beginning of the current fiscal year 2081/82.

According to NRB, the withdrawal will be conducted through the online bidding system, and the interest rate will be determined through competitive bidding. The collected amount, including both principal and interest, will be settled on Shrawan 18, 2082 (August 2, 2025).

Key Auction Details

• Total Amount: NPR 60 billion
• Minimum Bid Amount: NPR 100 million
• Bid Increments: Must be divisible by NPR 50 million
• Eligible Participants: Class ‘A’, ‘B’, and ‘C’ licensed banks and financial institutions
• Auction Method: Competitive bidding via NRB’s online platform
• Maturity & Settlement Date: Shrawan 18, 2082

Why Is the Central Bank Taking This Step?

As per NRB, the banking system is currently holding excessive liquidity, with total deposits crossing NPR 7 trillion. However, this liquidity is not being effectively utilized, as loan disbursement has remained slow. This reflects a lack of investor confidence and limited credit demand in the economy.

To control liquidity and stabilize the financial market, NRB has been consistently withdrawing funds using monetary tools since the start of the fiscal year. Tools like reverse repo, outright sale, deposit collection, and bond issuance are being used depending on the situation, whether there is too much or too little money in the system.

Recent Trends in Liquidity Control

Last week alone, NRB withdrew NPR 90 billion in a single day, highlighting the ongoing efforts to manage surplus liquidity. The central bank is using such actions not only when there is an overflow of money but also in times of shortage, to maintain balance in the financial system.

Conclusion

The decision to withdraw NPR 60 billion on Monday shows that Nepal Rastra Bank is actively managing liquidity to ensure financial stability. With a large amount of unused funds in the system, these measures are crucial to prevent inflation, reduce financial risk, and encourage more effective use of capital in the economy.

Asian Life Insurance Company Limited (ALICL) has announced the opening of its rights share issuance from Asar 25, 2082 (July 9, 2025). The company is offering 42% rights shares based on its current paid-up capital.

This means that shareholders will receive 4.2 new shares for every 10 existing shares they own. This issuance aims to raise over NPR 1.42 billion, with each share priced at NPR 100.

Key Details of the Rights Issue

The company had set the book closure date for Jestha 16, 2082 (June 29, 2025). This means that only those shareholders who held shares until Jestha 14, 2082 (June 27, 2025) are eligible to apply for the rights shares. The application period for the rights issue will begin from Asar 25, 2082 (July 9, 2025) and will remain open until Shrawan 13, 2082 (July 28, 2025).

Application Process

• Eligible shareholders (who held shares before the book closure date) can apply for rights shares. 
• Applications can be submitted through: 
  • Muktinath Capital 
  • Selected branches of Muktinath Bikas Bank (e.g., Biratnagar, Pokhara, Nepalgunj, etc.) 
  • Asian Life Insurance offices 
  • ASBA-approved banks and financial institutions 
  • Online via Meroshare (using C-ASBA system) 

Why This Matters to Investors

• The rights issue provides existing shareholders with an opportunity to increase their holdings at par value. 
• The company’s credit rating of A- suggests good ability to meet financial obligations. 
• After the rights issuance, the company will have a stronger capital base of NPR 4.82 billion, which may support future business expansion.