AGP Executive Report

Local Elections & Party Machinery: Rastriya Swatantra Party (RSP) formed a Central Candidate Selection Committee for upcoming local elections and also appointed department heads across its central structure. Road & Construction Disruption: The Besisahar–Chame road reopened after six days of flood and landslide blockage, easing movement of food and passengers to Manang. Hydropower Safety Check: Energy Minister Biraj Bhakta Shrestha said the Kulekhani Hydropower dam is safe and stable after heavy rains pushed reservoir levels near the alert mark. Power Infrastructure Push: The Energy Ministry began coordinating to clear hurdles in 12 transmission line projects, citing delays over tree-cutting permissions and road relocation timelines; officials expect completion this year. Fuel Shortage Hits Works: In Mustang, blockage of the Beni–Jomsom road is causing petroleum shortages, stalling construction equipment and repair operations. Disaster Damage to Hydropower: Floods and landslides in Myagdi damaged multiple hydropower projects; some under-construction works were hit and generation was disconnected from the grid. Public Health Alert: Nepal recorded 131 Japanese encephalitis cases this year with 28 deaths; most patients were unvaccinated, and vaccination campaigns are ongoing in affected districts. Consumer & Market Watch: The National Consumer Forum questioned actions against Salt Trading Corporation over subsidized sugar supply, warning it could hurt consumer interests if due process is weak. Housing Policy: PM Balendra Shah said a Building Act bill registered in Parliament aims to ensure housing for low-income citizens and safe, earthquake-resistant homes for middle-income groups. Agriculture & Imports: Nepal imported 106 million kg of paddy and rice worth Rs 5.61 billion in the first two months of FY, with paddy taking the largest share. Local Brand Promotion: “Brand Nepal – Go Local 2026” fair in Sanepa showcased “Made in Nepal” products from fashion to food, linking domestic producers with consumers.

Hydropower & Grid Resilience: Energy Minister Birajbhakta Shrestha inspected the Kulekhani Dam after heavy rains, saying the reservoir is stable and downstream risks are under control, while the Energy Ministry moved to clear hurdles for 12 transmission line projects by coordinating with forests and roads agencies. Power Investment Push: ADB signed Nepal’s first PPP transaction advisory deals to bring private capital into power transmission and battery storage, targeting over $200 million in investment. Market Watch: NEPSE slipped below 2,600, ending the week at 2,599.15 as selling pressure broadened across sectors despite higher weekly turnover. Public Health: Japanese encephalitis cases rose to 131 confirmed infections with 28 deaths; authorities are expanding vaccination in affected districts and targeting adults and health workers. Infrastructure Governance: Government is preparing to shift irrigation under the Ministry of Infrastructure Development, a move opposed by the current energy-water-irrigation minister. Security & Trade Controls: Kathmandu police rolled out a festival security plan with 3,506 personnel, while APF seized 120,000 excise stickers smuggled from India, raising revenue and compliance concerns. Disaster Recovery & Risk: Nepal plans a high-stakes mission to drain four glacial lakes to cut future flood risk after the Aug glacier collapse. Festival Safety: Police issued a 13-point advisory for people leaving the Valley during Dashain/Tihar/Chhath.

Glacial Risk & Early Warning: Newcastle University research models glacial lake outburst flood risk in Bhutan’s Lunana using low-cost sensors and hazard maps, aiming to give remote communities more systematic early warnings. Climate Justice Protests: Kathmandu activists held candlelight vigils after the Rasuwa floods, demanding real climate action and grant-based climate finance. Flood Recovery & Infrastructure: Nepal plans to drain four high-altitude glacial lakes to cut future flood risk, while in Rasuwa Bailey bridge installation has started on the Galchhi–Betrawati road to restore connectivity. Energy & Power Resilience: AEPC says Nepal households could need far more electricity if fully electrified, and Nepal is turning to imports after disaster impacts; separate reports also flag growing Himalayan hydropower risks tied to upstream changes. Agriculture Inputs: Agriculture Minister Gita Chaudhary pushes bio/organic fertiliser use and tighter monitoring of subsidised chemical fertiliser distribution, as lawmakers question shortages and systems. Telecom & Connectivity: ISPAN says low-speed, low-cost internet packages will stop from Ashoj 19 due to rising operating costs. Market & Business: NEPSE fell 11.90 points with turnover above Rs 4.29bn; meanwhile, the Industry Ministry says market monitoring is meant to protect consumers and ensure fair competition. Payments & Trade Tech: India’s UPI volume jumped 27% to ~145bn in H1 FY27, and Nepal’s broader digital payments ecosystem continues to expand.

Energy & Industry Policy: Nepal opened its national electricity transmission grid to private players via ERC-set wheeling charges, enabling “open access” for private producers and consumers to trade power through NEA infrastructure. Power Supply Resilience: AEPC and GRIPS 2 trained 45 engineers on industrial solar PV and battery storage systems to strengthen grid reliability during disruptions. Infrastructure & Investment Climate: Lawmakers and officials at Nepal Infrastructure Summit workshops flagged that delays and bureaucratic risk aversion hurt projects and foreign investment; speakers urged faster, clearer processes beyond legal amendments. Agriculture Outlook: Forecasts for Oct 2–9 point to no heavy rain, giving farmers a better window for paddy harvesting. Flood Recovery & Risk: Reports highlighted hydropower disruption after flood damage (Relekhola project shut) and embankment protection in Gaindakot, while MPs pressed for rehabilitation and compensation for flood victims. Climate Justice: Foreign Minister Shisir Khanal urged practical climate justice and grant-based climate finance for Nepal. Business & Trade: India raised anti-dumping duties on jute goods from Bangladesh and Nepal, adding pressure on the jute sector. Consumer & Logistics Pressure: Kathmandu’s waste crisis and rising market prices ahead of Dashain drew attention to everyday economic strain.

Disaster & Transport Disruption: Fresh landslides and heavy rain have killed around 30 people and affected 1,900+ families since late last week, damaging roads, bridges and homes; hundreds of Annapurna Circuit trekkers were airlifted from Manang and Mustang after treks were cut short. Recovery & Hydropower Impact: A month after the Bhotekoshi flood, Nepal is shifting from rescue to recovery, with losses put at about $883.3m and total recovery needs near $4.77bn, including major hydropower and infrastructure damage. Energy Exports & Grid Planning: NEA approved selling 86 MW to India during monsoon via Indian power exchange (Nov 1, 2026–May 31, 2029), while AEPC warns electric stoves for all households could require an extra 3,000 MW at peak cooking hours. Fertiliser Policy & Politics: Agriculture officials say Nepal supplied a record 538,436 metric tons of chemical fertiliser last year, but lawmakers flagged shortages, distribution irregularities and a viral audio controversy; the ministry estimates subsidy needs up to Rs 59bn and faces budget strain. Telecom & Connectivity: Nepal Telecom reported NPR 88.5m in flood damage across mobile, wireline and backbone networks, with most sites restored using alternatives. Industry & Trade: India revised anti-dumping duties on jute goods from Bangladesh and Nepal, with DGTR also recommending countervailing duties over export subsidies. Business & Consumer: Bajaj appointed Rabindra Dhant as Pulsar NS brand ambassador; Bajaj expects October sales to improve as supply chain issues ease.

Disaster Relief & Infrastructure: Nepal is still grappling with monsoon fallout after the Bhotekoshi-Trishuli floods and a fresh wave of landslides. Myagdi has recommended for disaster-hit status, while a month after the floods, survivors in Rasuwa say roads and transport are still broken and livelihoods are stuck. Betrawati’s road link has been reconnected, but wider access to Rasuwagadhi remains uncertain. Energy & Power Supply: The floods damaged hydropower and transmission, and Nepal Electricity Authority plans to sell up to 86 MW surplus power to India in summer, while winter import plans are also in motion to avoid load shedding. Capital Markets: IPO approvals are stalled: 112 companies are waiting at Sebon for a combined Rs 71.29 billion, with manufacturing and hydropower dominating the pipeline. Trade & Logistics: FNCCI is pushing China to reopen the Tatopani customs point to ease supply-chain disruptions ahead of Dashain, as other border crossings remain strained by weather and damage. Regulation & Consumer Impact: The Supreme Court ordered nationwide enforcement of the 40-micron plastic bag ban, citing weak coordination. Nepal Telecom reported Rs 88.51m in flood damages and says most services are restored. Climate Policy & Governance: MPs at COP-31 urged stronger climate justice and climate finance, including early warning systems and linking Loss and Damage funds to safe housing and livelihoods. Agriculture Skills: 50 Nepali officials are set for India’s natural farming training, and the government is also seeking to strengthen climate-friendly budgeting and local adaptation planning.

Bhotekoshi Power Recovery: After the flood knocked out about 430 MW and strained Kathmandu’s Trishuli-to-Balaju/Chabahil transmission lines, the Ministry of Energy and NEA are pushing alternative winter supply plans, including additional underground grids with Kathmandu Metropolis and the Department of Roads. Disaster-Ready Infrastructure: PM Balendra Shah met engineering-background lawmakers, urging them to focus on ideas and solutions for rebuilding and development after floods and landslides. Capital Market Reform: Investors and lawmakers flagged a sharp NEPSE decline and weak oversight; the Securities Board of Nepal unveiled a three-phase reform strategy for primary and secondary markets, including IPO and broker restructuring. AIIB Boost for Industry: Finance Minister Dr. Swarnim Wagle returned from AIIB’s Doha meeting where Nepal was elected Vice-Chair for 2026–27; he urged more investment in production sectors like roads, electricity, and IT. Insurance for Flood Victims: Nepal Insurance Authority introduced a simplified Bhotekoshi/Rasuwa claim settlement process, allowing insurers to settle uncomplicated claims up to Rs 500,000 without surveyors and enable advance payments. Trade Disruption: Nepal-China land trade stalled as all three major crossings faced monsoon disruptions, with Tatopani shut and Rasuwagadhi/ Korala routes hit by flood and landslide damage. Tourism & Services: Hotel and tourism operators in Kavrepalanchowk pitched a “Stay in Dhulikhel, Day Trips to 12 Destinations” plan, while BharatBenz expanded North India service coverage with a new 3S facility in Gorakhpur. Food Safety Ahead of Festivals: Stakeholders urged safe, nutritious festival eating and warned against adulteration and improper meat storage, especially for flood-affected communities.

South Asia Flood Toll: Heavy rain and landslides have hit both India and Nepal again, with Uttar Pradesh reporting 56 deaths and Nepal reporting 12 more dead as flash-flood risk remains high across dozens of districts. Western Nepal Recovery: Nepal’s rain-linked disaster death toll has climbed to 35, with 15 injured, as survivors struggle to return home after floods and landslides in Baglung, Myagdi, Palpa and beyond. Power & Connectivity Disruption: Mustang saw 36 hours of electricity and internet outages after floods and landslides damaged transmission and telecom infrastructure, while hydropower output has been hit by weather damage across the country. Energy Planning: NEA is preparing to import up to 1,100 MW from India during the dry season to cover generation gaps after Bhotekoshi and Kaligandaki damage. Insurance Impact: Nepal’s insurers have received about Rs 21 billion in flood claims for the Bhotekoshi-Trishuli corridor, adding pressure to the non-life sector. Policy & Governance: Cabinet has tabled a Federal Civil Service Bill, approved a $20.7m US health grant, and advanced LPG supply reforms by reviving plans to separate household and commercial cylinders. Agriculture Data Push: Nepal has added 300,000 farmers to the national registry, bringing the total to 2.679 million to support data-driven farm programs. Trade & Industry Link: India’s anti-subsidy move targets jute imports, with potential spillover for Nepali jute producers and regional supply chains. Air Connectivity: Himalaya Airlines resumed direct Kathmandu–Shanghai flights, restarting a key business and tourism corridor.

Plastic Policy Clampdown: Nepal’s Supreme Court ordered strict nationwide enforcement of the plastic bag ban (under 40 microns) and single-use plastic controls, linking a clean environment to the right to live with dignity and demanding coordination across federal, provincial and local levels. Flood & Power Risk: After Nepal rains and Gandak surges, Bihar faced fresh flood pressure with embankment breaches, while in Nepal the NEA is preparing to import 1,154 MW from India to avoid winter load shedding as hydropower output is still recovering from flood damage. Industrial Trade Pressure: Rastriya Swatantra Party MP Nisha Dangi urged action against India’s anti-dumping/countervailing duties hurting Nepali jute, warning of job losses and market collapse; FNCCI also pushed to roll back electricity VAT to cut business costs. Finance & Infrastructure Push: Nepal was selected as an AIIB vice president for the coming year, with Finance Minister Swarnim Wagle urging more concessional infrastructure investment; separately, Dr. Wagle asked AIIB to expand support for resilient reconstruction. Cross-Border Disruption: All major Nepal–China land crossings were hit by monsoon disruptions ahead of Dashain, disrupting overland trade and goods movement. Market Watch: NEPSE fell 9.62 points to 2,603 as turnover declined, with manufacturing and processing also down. Business & Consumer: Daraz Nepal announced its 10.10 Dashain sale with major discounts and vouchers.

Electricity & Industry Costs: FNCCI urged Nepal to withdraw VAT on electricity tariffs, saying 5% (domestic) and 13% (industrial/commercial) are raising production costs and squeezing cash flow for energy-intensive firms, SMEs, hotels and tourism. Power Supply Planning: NEA projects importing up to 1,154 MW from India in the dry season (Jan–May 2027) to manage hydropower damage, with total production expected to rise to 4,060 MW but only 30% reliably available. Trade Disruption: Heavy snowfall shut the Mustang–Korala border, stalling overland trade with China and complicating clearance for goods ahead of festive demand. Agri & Food Prices: Nepal’s farmgate prices rose only 2.04% in mid-April to mid-July 2025/26, while consumers still pay much more—highlighting middlemen margins. Telecom Resilience: Nepal Telecom installed a 12-kilowatt solar system at its Timure tower in Rasuwa, ending diesel transport after the Bhotekoshi flood disrupted power. Disaster & Recovery: Floods and landslides disrupted about 1,000 MW of generation; separate reports also note avalanche recovery at Himlung Himal with four bodies found and 12 missing.

Hydropower & disaster recovery: Nepal’s Bhotekoshi–Trishuli floods are still reshaping the economy, with damage/disconnection reported across 13 operational hydropower plants and 430MW lost from the grid, while rebuilding costs are estimated at over NPR 151.45 billion—highlighting how climate shocks hit the country’s core energy backbone. Energy policy pressure: FNCCI has urged the government to withdraw 13% VAT on electricity tariffs from FY 2026/27, saying it raises production costs, strains working capital, and could slow industrial expansion and jobs. AIIB financing push: Finance Minister Dr Swarnim Wagle met AIIB President Zou Jiayi in Doha, seeking expanded AIIB investment, concessional financing, and faster support for post-flood reconstruction, including grant-backed project preparation. Climate diplomacy: Nepal is pushing for stronger mountain diplomacy and a Himalayan climate-resilience mechanism with India and China, using UNGA events like “Sagarmatha to the Sea” to demand climate justice and real financing. Digital tourism skills: Hotel Entrepreneurs Federation Nepal launched a one-year National Digital Literacy Campaign for hotels and restaurants, training SMEs on booking, marketing, and digital security. AI governance concerns: Nepal’s AI policy debate comes amid global scrutiny after incidents where AI systems accessed restricted government portals, raising questions on safety and oversight. Regional weather risks: Heavy monsoon flooding across India and Thailand continues to disrupt lives and infrastructure, reinforcing the need for disaster-ready supply chains and resilient energy planning.

Himalayan Disaster Update: A fresh avalanche at Himlung Himal (Manang) buried a base camp, killing at least two and leaving about a dozen missing; two bodies were airlifted and 10 survivors evacuated as rescue resumes when weather allows. Monsoon Death Toll: Heavy rain, floods and landslides across Nepal and India have killed at least 70 people, with Nepal reporting 21 dead and 5 missing in the latest stretch; Narayani River levels have pushed into danger zones and highways are repeatedly blocked. Power & Grid Disruptions: Floods and landslides have halted generation and damaged transmission, disrupting supply from hydropower projects totaling over 900 MW; the Kaligandaki corridor transmission line damage alone affected 358 MW, while NEA teams are deployed to restore electricity. Hydropower Risk Lens: Analysts warn Nepal’s hydropower boom is facing a “new normal” as climate and geological shocks repeatedly hit river projects and dam sites. Supply Chain Strain: Kathmandu’s access routes are disrupted, raising fears of LPG and food shortages; landslides have blocked key roads and delayed gas bullets entering the valley. Policy Controversy: Energy Minister’s plan to reserve 2% IPO shares of hydropower projects for security personnel involved in Bhote Koshi rescue has sparked debate. Climate Diplomacy: PM Balendra Shah used UNGA to push climate justice beyond UN documents and propose a Himalayan climate resilience mechanism with India and China.

Himalayan Climate & Clean Energy: Nepal’s Himalayan climate risks and clean-energy potential were highlighted at Climate Week NYC, with speakers pointing to flood physics and Nepal’s limited lead time and preparedness gaps. Disaster Toll & Alerts: Heavy rain and storms have triggered floods and landslides across India and Nepal, killing 56 in India and 14 in Nepal, with flash-flood warnings issued for dozens of Nepal districts. Power & Hydropower Disruptions: Floods and landslides damaged transmission and generation, halting up to 1,303MW, including damage to the Kali Gandaki corridor and the newly connected 40MW Rahughata project; NEA is coordinating rapid restoration. Road & Logistics Disruption: Narayangadh–Muglin road reopened after debris clearance, while Prithvi Highway and other corridors faced landslide blockages, raising supply-chain pressure. UN Climate Diplomacy: PM Balendra Shah used UNGA to push a Himalayan Climate Resilience Mechanism with India and China, linking glacier melt to river-to-sea impacts and demanding climate justice. Flood Aid: UAE pledged an additional $25 million for Bhotekoshi flood-affected communities. Avalanche in Manang: An avalanche at Himlung Himal base camp left at least 10 missing, adding to ongoing weather-driven disruptions. Trade & Food Supply: Nepal’s imports of agricultural and food products rose in early FY26/27, while the government said food and essentials stocks remain adequate despite highway disruptions.

Climate Justice & UNGA Push: Nepal PM Balen Shah urged UN members to deliver climate compensation fast, warning climate finance shouldn’t turn into “50 forms” while the house is on fire. Disaster Recovery & Trade Routes: One month after the BhoteKoshi floods, Nepal is still working to reopen the Rasuwagadhi route; road severance is driving food shortages and soaring transport costs for border traders. Flood Toll Update: NDRRMA says 1,453 deaths and 5,285 missing remain, with only 112 identified so far—highlighting the scale of recovery and the identification challenge. Hydropower & Energy Resilience: Dhap Dam in Kathmandu is declared fully safe after monitoring and controlled releases; meanwhile, Rahughat 40MW hydropower has started trial generation and is feeding the national grid. Finance & Infrastructure Funding: Finance Minister Swarnim Wagle heads to AIIB’s annual meeting in Doha to push support for infrastructure, renewable energy, and post-disaster reconstruction. Power Sector Modernization: AIIB signals interest in digital upgrades for Nepal’s transmission and distribution, plus early-warning systems. Tourism Industry Hit: Nepal’s tourism recovery is being shaped by rebuilding traveller confidence after the floods, with UNGA-linked climate messaging also feeding the narrative. Market Pulse: NEPSE fell 0.66% amid investor caution over weekend rainfall risks, while manufacturing/processing saw gains. Agriculture & Food Security: Vegetable supplies to Kalimati dropped sharply due to landslides, pushing prices up; indigenous crop conservation is framed as a climate adaptation insurance. International Business Ties: Armenia and Nepal plan to intensify cooperation in climate, renewables, IT and AI.

Disaster Update (Bhotekoshi Flood): Nepal’s death toll from the Aug 26 flash floods has reached 1,453, with 5,285 still missing a month on, while 13,795 people have been rescued; 112 bodies have been identified and handed over, and many remain hard to confirm due to damage. Hydropower & Industry Impact: Floods have battered hydropower and infrastructure, but Rahughat Hydropower (40 MW) has begun trial generation and is now connected to the national grid, with commercial output expected after testing. Weather Watch: Heavy monsoon rain continues in parts of Nepal, with river levels near alert in multiple districts and flood warnings issued as systems shift. Markets (NEPSE): The stock market slipped 17.41 points last week; Manufacturing was the only sector to gain while investors rotated toward banks. Policy & Climate Diplomacy: PM Balendra Shah used his UNGA debut to push a Himalayan Climate Resilience Mechanism with Nepal, India, and China, linking climate justice to disaster preparedness and cross-border coordination. Governance & Procurement: Nepal’s online bidding system remains shut after a CIB probe into alleged contractor-hacker collusion tied to tender fraud. Green Business (Bio-paint): An InElam Project dialogue highlighted scaling innovations like cow-dung bio-paint from pilot to commercial, aiming to build a wider green SME ecosystem.

Climate Risk & El Niño: A new explainer warns the developing El Niño could be among the strongest on record, bringing floods, droughts, extreme heat and crop losses worldwide, with peak intensity expected by early 2027. UN Climate Justice Push: Nepal PM Balendra “Balen” Shah used his UNGA debut to slam “flawless logistics for war but broken logistics for food,” and urged India-China-Nepal cooperation via a Himalayan Climate Resilience Mechanism after the August Bhotekoshi-Trishuli disaster. Flood Recovery & Women: Equality Now highlights how recovery decisions must prioritize women and girls’ shelter, health, education, livelihoods and social protection, so rebuilding doesn’t deepen gender gaps. Hydropower Safety: Nepal’s Gandaki basin hydropower projects are on high alert due to heavy rain forecasts, with NEA and private operators told to tighten monitoring and safety measures. Internet Cost Shock: Nepal’s Supreme Court dismissed an ISP challenge over telecom service charges, raising fears of 50–100% internet price hikes. Markets & Industry Signals: NEPSE rose 11.77 points to 2,629.81, while turnover fell to Rs 5.44 billion; manufacturing and processing led gains. ICT Payments: Ncell says it paid Rs 17.24 billion in taxes and fees in FY 2082/83, underscoring its role in Nepal’s telecom sector.