A writ petition was presented at the Supreme Court Monday, June 2, challenging the government’s renewed plan to extract and export riverbed materials, arguing that the move violates a prior court ruling.
Senior Advocate Dinesh Tripathi, who filed the petition, has demanded contempt of court proceedings against Prime Minister KP Sharma Oli and Finance Minister Paudel. He claimed the provision reintroduces a policy that was struck down by the Supreme Court four years ago.
Finance Minister Bishnu Paudel announced the policy while presenting the annual budget for fiscal year 2025/26 on May 29. The plan would allow the private sector to commercially produce, process, and export natural and mineral resources—pending environmental impact assessments.
“Upholding the supremacy of the judiciary is the cornerstone of democratic governance,” the petition reads. “Ignoring the court’s directive is a grave insult to the Constitution and the democratic system.”
Tripathi’s petition urges the court to summon both leaders within 24 hours to record statements and initiate appropriate legal action.
According to Clause 87 of the new budget, the government intends to involve private actors in the commercial exploitation of construction-grade riverbed materials and minerals, provided the materials are deemed suitable following environmental assessments. The plan covers domestic use as well as export.
A similar provision was included in the 2021/22 budget, also under Finance Minister Paudel, which had proposed exporting riverbed materials like sand, gravel, and stones to help narrow Nepal’s trade deficit. That policy, however, was blocked by the Supreme Court following a writ petition that called attention to its environmental consequences.
In its ruling, the court ordered a halt to the government's plan and directed the government to prioritize environmental protection.
Despite this precedent, private sector lobbying for renewed permission to exploit riverbed materials intensified in the lead-up to the new budget. Key industry groups such as the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Confederation of Nepalese Industries (CNI) have been vocal proponents of the plan.
In a formal recommendation to the government, FNCCI urged the creation of legal mechanisms to allow the extraction, sale, and export of materials exceeding Nepal’s estimated annual domestic demand of 20 million cubic meters.
The federation argued that sediment buildup in riverbeds has harmed agricultural land, and that export opportunities to countries like India and Bangladesh may decline in coming years—necessitating immediate action. FNCCI also pledged its full support to Finance Minister Paudel if the policy were implemented.
CNI echoed these concerns, stating that restrictive laws were preventing the productive use of valuable natural resources, and called for policy changes to enable commercial utilization.
Although the latest budget appears to align with the private sector’s demands, its implementation could be derailed by legal challenges. The Supreme Court has begun preliminary processing of Tripathi’s petition, which is expected to be formally registered on Tuesday, June 3, according to a court official.
