AGP Executive Report

Disaster Response & Recovery: Nepal’s morgues are overwhelmed after Bhotekoshi floods swept bodies far downstream, with Chitwan preparing a temporary storage facility in Bharatpur (about 250 capacity) and other districts coordinating transfers as recoveries continue. Flood Risk Escalation: Nepal and China paused parts of rescue after a barrier lake on the Tibet side began overflowing, raising fears of a second surge; Chinese teams are assessing the site while crews withdraw to safer ground. Hydropower & Worker Safety: Four employees trapped in the Rasuwagadhi Hydropower Project were rescued, while preparations continue for possible rescues at Trishuli-3 hydropower sites; NEA is also managing power impacts from the floods. Power & Infrastructure: Kathmandu Valley saw a transmission disruption due to problems on the Khimti–Dhalkebar 220 kV line; NEA restored supply via alternative routes and later restored power in Nuwakot using alternative transmission arrangements. Governance & Funding Controls: PMO warned against unauthorised QR codes and personal bank details for flood donations, urging people to verify official disaster relief fund accounts; Cabinet also decided to deposit one month’s salary of the PM and ministers into the disaster relief fund and approve a relief package and DAP fertiliser procurement. International Humanitarian Angle: Nepal declined foreign search-and-rescue help for now, while Irish Red Cross launched an emergency appeal and multiple countries’ citizens remain unaccounted for.

Hydropower Disrupted by Nepal–Tibet Floods: Nepal’s flash floods hit about 13 hydropower plants and a solar facility, damaging roughly 359 MW of capacity; Devighat (14 MW) was among units supplying India, with Nepal’s exports to India reportedly cut from ~800 MW to at least 400 MW. Power Restoration in Nuwakot: NEA restored electricity in flood-affected Nuwakot using alternative transmission lines (Sindhupalchok to Kharanitar/Samundratar/Chaughada/Likhu/Panchakanya/Bidur) and is charging key substations/lines to bring services back by evening. Hydropower Workers Missing: Multiple projects reported staff out of contact, including Upper Trishuli-1 (76 employees), Rasuwa Gadhi (51), Mailung Khola (8), and Rasuwa Bhotekoshi (two missing). New Flood Threat at Barrier Lake: A rapidly expanding dammed lake above the disaster zone near Gyirong Port is overflowing, raising fears of a second surge; authorities urge people to avoid riverbanks. Global Response: Australia pledged $5m and extra consular staff; India and others are sending relief and tracking missing nationals. Industry Note: Separate coverage also highlighted Cambodia’s Asian film festival, showing regional media industry links.

Himalayan Disaster Response: Nepal’s Finance Minister Swarnim Wagle says the government has Rs 2.34 billion in the Prime Minister Disaster Relief Fund and has already allocated Rs 1.17 billion to the Home Ministry, with rescue and relief ongoing while reconstruction will start only after immediate operations. Cross-Border Rescue & Missing Persons: A Reuters report says nearly 1,500 people are missing across Nepal and China’s Tibet after a glacial collapse triggered catastrophic flash floods; Nepal police expect the death toll to rise beyond 165/270 as searches continue, with hundreds of foreigners unaccounted for. Cause Under Scrutiny: Scientists and the US Geological Survey point to glacial collapse and debris flow rather than an earthquake as the trigger, though officials are still piecing together what happened. Power Sector Hit: Nepal Electricity Authority restored power to parts of Nuwakot via alternative transmission lines while teams work to bring damaged lines back online. Hydropower Workers Affected: South Korea says nine of 10 Koreans isolated after the floods were moved to safety, while others remain missing from a hydropower construction site. Regional Aid Coordination: India’s MEA says 288 Indian nationals remain unaccountable and humanitarian support will be provided as requested by Nepal.

Himalayan Disaster: Flash floods on the Nepal–Tibet border have killed at least 95–157 people (figures vary by update) and left hundreds missing, including large numbers of foreign tourists and pilgrims; Nepal says 95 bodies recovered and about 500 missing, while China reports 3 dead and 265 missing near Gyirong port. Hydropower & Infrastructure: The Bhotekoshi River surge has knocked out power generation and damaged hydropower and solar projects—reports cite damage to about a dozen hydropower sites and major road/bridge losses. Cross-Border Response: Nepal has mobilized helicopters and rescue teams; India has dispatched about 10 tonnes of relief material by air, and China has activated high-level emergency response with large rescue deployments. Industry Impact: With roads, bridges, and power disrupted across Rasuwa, Nuwakot and beyond, the hydropower sector is facing immediate operational and repair pressures. Food Supply Watch: Separately, India’s Centre has started targeted onion buffer-stock releases to curb seasonal price spikes ahead of festive demand.

Rasuwa Flash Flood Disaster: A massive flash flood swept Nepal’s Bhote Koshi River from the Tibet side, hitting Rasuwa and nearby districts and killing at least 4 (reports also mention 7–9 deaths) with hundreds missing, including 105 Indians and 8 South Koreans working on a hydropower project; rescue teams and helicopters were deployed, but high water blocked landings in worst-hit areas. Hydropower & Power Disruption: The flood damaged multiple hydropower and transmission assets, with NEA citing major hits to Rasuwagadhi, Chilime, Trishuli 3A/3B Hub (220 kV), Trishuli and Devighat, disrupting electricity supply and affecting roads and bridges. Cross-Border Fallout: China’s Tibet side reported “major casualties” after a mudslide at the Gyirong border area, raising fears of further losses and complicating logistics. Emergency Response: WHO and Nepal’s health authorities moved to send medicines, tents, beds, and medical teams, while Trauma Centre doctors were dispatched to the affected zone. Business & Services: Ncell partnered with Nepal Mediciti Hospital to offer discounted or free doctor consultations for eligible customers. Trade & Exports: DDC kicked off ghee exports to Dubai and plans further shipments to Japan, South Korea and China’s Tibet.

Media & Democracy: Nepal’s ICT Minister Dr. Bikram Timilsina urged AIBD to keep press freedom, citizens’ right to information and public interest at the core, warning against solving misinformation with bans. Higher Education Reform: The Ministry of Education consulted vice-chancellors on amendments to the Some University Act, pushing for autonomy, good governance and research-focused, job-ready universities. Labour Rights & Outsourcing: HoR lawmakers pressed for a minimum wage for foreign employment and tighter monitoring of outsourcing, calling procurement-law outsourcing a way to dodge responsibility and weaken workers’ rights. Domestic Work Safety: The same committee heard the government’s pledge to make domestic labour safe and dignified, with calls to directly monitor Gulf conditions. Auto & EV Push: Vice President Ram Sahaya Yadav opened NADA Auto Show 2026, calling the auto sector a key economic pillar and urging EV adoption and charging infrastructure. Telecom Spectrum: Nepal Telecommunication Authority opened an auction for residual 800 MHz spectrum, setting rules for eligible telcos. Trade Disruption: Tatopani border point partially reopened after 36 days, easing stalled cargo but with damaged road sections still affecting movement. Sugar Prices: After India’s export ban, Nepal’s sugar price jumped to Rs125/kg ahead of festivals as supply tightened. Healthcare Partnership: Ncell partnered with Nepal Mediciti Hospital for free OPD consultations and discounts for eligible Ncell users. Capital Markets: NEPSE fell 5.30 points to 2,594.27 with turnover rising to Rs 4.10 billion. Industry Revival: Government moved to reoperate Birgunj Sugar Factory after Hetauda Textile’s trial production, starting a feasibility study and technical assessment.

Automotive & EV Push: Vice President Ram Sahay Prasad Yadav inaugurated NADA Auto Show 2026 in Kathmandu, calling the auto sector a backbone of Nepal’s economy and urging EV adoption to cut fuel-import outflows; the show also highlights “Made in Nepal” parts and vehicles, including the locally made Yatri P-2 electric scooter. Business Sentiment: FNCCI president Anjan Shrestha said business confidence has hit a 36-year low as demand stays sluggish and government budget promises haven’t translated into action. Agri Support & Soil: Government will provide management costs to cooperatives buying paddy at minimum support prices, while Agriculture Minister Gita Chaudhary prioritised a soil improvement plan plus farmer registration and digital marketplaces. Energy-Irrigation Heritage: Energy Minister Biraj Bhakta Shrestha inspected Chandra Nahar in Saptari, saying it should be preserved and modernised for irrigation, agriculture and tourism. Markets Watch: NEPSE fell 5.30 points to 2,594.06 as turnover rose to Rs 4.10 billion. Dairy Farmers: Supreme Court ordered a system to ensure dairy farmers are paid regularly, after unpaid dues reached about Rs 7 billion. Digital Governance: Digital Nepal Conclave 2026 is set for Bhadra 11, focusing on governance, data and the digital economy. Trade Disruption: Tatopani border road reopened after 40 days, easing container movement though some delays remain.

Digital Payments Milestone: India’s UPI turns 10 on Aug 25, with transaction volume jumping to 24,162 crore in 2025-26 and value rising over 4,000-fold since 2016—now powering 84% of India’s digital payments. Govt Advertising Reform: Nepal’s communications minister says the government will push a more transparent, competitive advertising market under the National Advertising Policy, after past irregularities. Gen Z Taskforce: Nepal forms a special taskforce to implement Gen Z demands, including proposals around a Gen Z council, martyrs day and related commemorations. Dairy Sector Court Order: Nepal’s Supreme Court orders immediate payment of dairy farmers’ outstanding dues (about Rs 7 billion) and demands a regular milk-payment system. Hydropower Progress: Rahughat hydropower (40 MW) construction is completed in Myagdi, with successful testing and trail power generation expected soon. Infrastructure & Investment Push: Lawmakers urge reforms to PPP hurdles and a one-door approach; industry leaders call for a 15-year infrastructure master plan and warn private investment is overly concentrated in hydropower. Telecom Expansion: Nepal Telecom extends 4G to Badimalika in Bajura, improving connectivity for locals and tourists. Market Watch: NEPSE fell 19.13 points to close at 2,599.58.

Parliament Watch: Nepal’s House of Representatives is set to take up multiple bills and ministerial responses, including the First Amendment Bill on constitutional office bearers, Passport amendments, Human Trafficking and Transportation amendments, and the Mines and Minerals Bill—while five parliamentary committees meet on tourism, human-wildlife conflict, infrastructure and PPPs, and legislative matters. Market Pulse: NEPSE slipped below 2,600, closing at 2,599 after a 19-point fall; hydropower led the decline and turnover eased to Rs 3.23 billion. Mining & Industry Policy: Lawmakers registered 35 amendment proposals on the Mines and Minerals Bill, with clause-by-clause committee review expected soon—aimed at clearer federal roles for mining, including strategic and radioactive minerals. Power & Hydropower: Rahughat hydropower (40 MW) in Myagdi has completed construction and has started power generation testing, while the energy minister signals seasonal tariff moves and concessional rates to boost monsoon surplus use by industries. Agriculture & Poultry: Poultry farmers protested in Maitighar, demanding action against middlemen, smuggling, and calls for transparent feed/chick pricing and a scientific pricing system. Local Business Dispute: Lahan Municipality demolished structures in Naya Bazar; traders allege selective action and business losses. Private Sector Push: NCC and NRNA signed an MoU to attract investment and expand trade, including support for export-oriented industries and SMEs.

Electricity & Industry: Nepal is moving to make power cheaper and more reliable for heavy users, with Minister Biraj Bhakta Shrestha pushing seasonal tariff plans, adding nine substations in Sunsari–Morang, and urging faster complaint response to keep industrial supply steady. Power Purchase Agreements: The Nepal Electricity Authority has formed a five-member subcommittee to set new PPA criteria within seven days, aiming to restart deals with licensed energy producers. Agriculture & Irrigation: Shrestha inspected the Sunsari–Morang Irrigation Project, saying irrigation must come with integrated farm programs to raise output and jobs, citing Rs 14 billion annual production value. Mining Governance: A new Mines and Mineral Resources Bill would let provinces explore minerals under provincial law, but extraction needs federal approval. Food & Livestock Regulation: Meat inspection is set to become mandatory in phases from December, but implementation risks remain due to weak slaughterhouse infrastructure. Trade & Imports: Nepal imported over Rs 24 billion of agro products via Kakarbhitta in FY 2082/83, led by cereals and pulses. Business & Investment Promotion: NCC and NRNA signed an MoU to boost foreign investment, trade expansion, and export-oriented SMEs through events and capacity building. Tourism Boost: Mustang tourism entrepreneurs are hopeful after PM Balendra Shah’s road trip to Muktinath and the district. Public Health: Govt urged precautions against Japanese encephalitis as cases and deaths rise, noting most victims were unvaccinated.

Electricity & Industry: Energy Minister Biraj Bhakta Shrestha says the govt is preparing seasonal electricity tariffs and concessional rates for high-volume users to absorb rainy-season surplus, while adding nine substations in Sunsari–Morang to make supply more reliable. Power Purchase Agreements: The Nepal Electricity Authority has formed a 5-member subcommittee to set new PPA criteria within seven days, aiming to speed up deals with licensed energy producers. Irrigation for Jobs: Shrestha inspected the Sunsari–Morang Irrigation Project, stressing irrigation must come with integrated farm support to raise production and incomes (the project is cited at over Rs 14 billion in annual ag output). Mining Governance: A new Mines and Mineral Resources Bill would let provinces explore minerals under provincial law, but extraction needs federal approval. Agri Trade Pressure: Nepal imported over Rs 24.26 billion of agri products via Kakarbhitta in 2082/83, led by cereals and pulses. Food Safety & Industry Readiness: Meat inspection will become mandatory in phases from December, but implementation faces infrastructure gaps at slaughterhouses. Telecom for Digital Economy: An Integrated Telecommunications Policy draft targets 50 Mbps broadband for 80% of the population in 5 years and 98% in 10, linking telecom with sectors like agriculture and industry. Manufacturing Bottleneck: Anti-snake venom shortages are being reported amid procurement challenges, even as demand is estimated around 5 lakh vials annually. Agri Finance Stress: Sugarcane farmers in Nawalparasi (West) say sugar mills still haven’t cleared dues, with mills reportedly owing tens of millions of rupees. Livestock Value Addition: Dolpa’s Jagdulla Rural Municipality and DDC signed an agreement to start commercial yak cheese production, targeting about 30 tonnes annually. Auto & Local Assembly: The 18th NADA Auto Show opens Tuesday, highlighting Nepal-assembled vehicles and parts, with the theme “From Industry to Employment.” Weather Risk: Monsoon conditions continue with heavy rain possible in hilly areas, raising landslide and flood concerns.

Water Governance: Climate shifts are drying Nepal’s springs and lowering groundwater, turning water access into a political flashpoint; a case from Indrawati Rural Municipality shows how shrinking supplies can spark local rivalries. Environmental Compliance: The Ministry of Agriculture, Forests and Environment is considering amending the Environment Protection Act to simplify environmental assessment, speed approvals, and tighten monitoring and compliance. Industrial Restart: Hetauda Textile Industry is in trial production with 10 looms running and more machines being repaired/modernized; Industry Minister Gauri Kumari Yadav says the goal is full operation of all 488 looms with support from the Nepali Army. Energy & Flood Control: Energy Minister Biraj Bhakta Shrestha pushed integrated flood control and irrigation planning in Sunsari and urged faster, complaint-focused power distribution improvements in Koshi Province. Trade Disruptions: Nepal’s overland trade routes to China face repeated monsoon landslides and bridge washouts, raising costs during peak festival season. Tech & Consumer Market: HMD T21 2nd Edition tablet reportedly launched in Nepal with early-bird discounts and gifts. Regional Energy Deal: India and Mauritius signed a five-year fuel supply pact with IOCL covering Mauritius’ entire petrol, diesel and ATF imports. Markets: NEPSE fell again, with investors rotating holdings amid weaker sentiment.

Energy Security Deal: India and Mauritius signed a five-year agreement where Indian Oil Corporation will supply Mauritius’ full import needs of petrol, diesel and aviation turbine fuel, alongside oil-and-gas cooperation and biofuels. Power Distribution Focus: Nepal’s Energy Minister Biraj Bhakta Shrestha ordered Koshi Province’s electricity system to be made more reliable and complaint-handling faster, stressing higher consumption alongside better supply. Climate Risk Planning: Shrestha urged agencies to prepare for an exceptionally strong El Niño, warning it could hit hydropower, irrigation and food security from October to February. Hydropower/Water Infrastructure: India’s Finance Minister Nirmala Sitharaman directed early completion of the Kosi high-level dam DPR and pushed funding and approvals for the Kosi-Mechi link phases. Textile Restart in Nepal: Hetauda Textile Industry is set to run at full capacity again, with 20 looms already operating and the rest to be repaired gradually, using domestic cotton priority. Aviation Upgrade: Japan will fund a new air traffic control tower at Tribhuvan International Airport to modernize Nepal’s air safety systems. Market Watch: Nepal’s NEPSE fell over the week, but turnover rose sharply, with hydropower and manufacturing stocks driving liquidity. Telecom Policy: Nepal plans to revise telecom license renewal fees, shifting from lump-sum pressure to a percentage of annual income, aiming to make broadband cheaper and faster. Waste Management Coordination: Kathmandu Valley local governments agreed to prepare action plans for waste management, with federal support for long-term solutions. Agriculture Update: About 98% of paddy sowing is completed nationwide, with improved monsoon conditions lifting expectations for production.

Border Security & Industry Link: India’s SSB is upgrading Nepal/Bhutan border guarding with drones, CCTV, thermal imaging, GPS patrolling and GIS planning, alongside new battalion barracks and training facilities. Public Health Supply: Nepal’s Health Ministry circular asks local governments to ensure free medicines and listed medical supplies for local health institutions. Capital Markets: SEBON proposes a bond-issuance rule requiring at least Rs 1 billion capital, founder share capital fully paid, and a debt-to-capital cap of 70:30 to open the bond market beyond banks and financial institutions. Energy & Climate Risk: Nepal’s El Niño readiness workshop urges faster action on water, food, irrigation and disaster resilience, including more storage capacity for hydropower and irrigation planning. Agriculture Inputs: Government forms a 12-member task force to study chemical fertilizer supply problems and recommend short- and long-term fixes within 60 days. Waste Management: Kathmandu Valley waste talks push for long-term coordination between federal and local bodies, with Bancharedanda residents’ issues highlighted. Transport & EVs: Nepal reports 63,280 registered EVs and EVs forming over 70% of newly imported private four-wheelers. Market Pulse: NEPSE fell 10.67 points to close at 2,618.72. Cannabis Policy: Finance Minister Wagle signals willingness to facilitate regulated medicinal cannabis cultivation after expert study and legal arrangements. Business & Manufacturing: India’s Lumino Industries plans a Rs 700 crore IPO on Aug 27 to fund debt repayment, machinery and facility upgrades.

Nepal-India Trade & Industry Finance: India’s DGFT amended its Foreign Trade Policy to let exporters invoice and receive overseas payments in Indian rupees (with FTP benefits), aiming to cut dollar reliance and transaction friction—an update that could matter for Nepal-linked trade flows. Nepal Energy & Industry Costs: Nepal’s Energy Ministry and NEA are preparing ways to reduce electricity bills via seasonal tariff ideas to boost domestic use and curb rainy-season power wastage. Agri-Exports & Dairy: DDC has started exporting ghee to Dubai, shipping an initial 500–600kg and targeting 50,000kg annually, with plans to expand to Japan and South Korea. FDI Watch: Nepal’s foreign investment commitments fell sharply to Rs 3.77 billion for 191 projects in the first month of FY 2026/27, with ICT dominating registrations. Telecom for Digital Growth: NTA unveiled a draft integrated telecom policy to consolidate existing telecom, broadband, satellite, cyber security and AI directions, targeting broader high-speed access. Capital Markets: Lumino Industries announced a Rs 700 crore IPO (price band ₹78–82) launching Aug 27. Local Industry & Markets: Kalimati set wholesale prices for fruits and vegetables for Bhadra 3–5, reflecting day-to-day supply shifts. Waste & Urban Services: Bancharedanda landfill near Kathmandu Valley is overflowing and leaking into the Kalpu River, raising fresh concerns for waste management.

Extended Producer Responsibility (Plastic EPR): Nepal’s new Extended Producer Responsibility (EPR) Guidelines 2026 shift plastic packaging waste duties to companies that make, import or sell products, covering items from PET bottles to shampoo sachets; non-compliance could jeopardize environmental registration. Energy & Power Procurement: The Nepal Electricity Authority (NEA) has advanced the process to issue new Power Purchase Agreements (PPAs), forming a sub-committee to set standard criteria within a week. Consumer & Telecom Regulation: The Consumer Court ordered Dish Home to pay Rs 150,000 over a negligent internet/TV outage, while the Nepal Telecommunications Authority (NTA) opened a 15-day feedback window on an Integrated Telecommunications Policy draft. LPG Supply Oversight: Parliament’s industry committee pushed for a technology-based LPG cylinder tracking system and clearer records for safety and distribution. Domestic Industry Push: The PM’s office urged all government bodies to prioritize Nepali goods in procurement. Market Watch: NEPSE rose 7.17 points to close at 2,629.40. IMF Update: IMF mission chief said Nepal’s economy is more stable post-reforms, with inflation at 1.7% and reserves at a record.