R&D Economic Research & Business Development
Date: August 02, 2009 Highlights
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Nepalese Prime Minister Madhav Kumar Nepal will visit India this month, his first trip to any neighboring country after assuming power in May this year.
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Nepal-China relation, based on the five principals of peaceful co-existence, has been growing to the satisfaction of both countries in the past 54 years, said an eminent Nepali sinologist in an interview with Xinhua on Saturday.
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Former Finance Minster of the country and senior Leader of the Nepali Congress party, Dr. Ram Sharan Mahat, has predicted that the Federal Structure for the country would be a highly expensive one.
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Constituent Assembly member and minister for Federal affairs, CA, Legislature Parliament and Culture Minendra Rijal have expressed his confidence that the new constitution would be drafted on time.
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Prime Minister Madhav Kumar Nepal has said the government is serious about the rehabilitation and integration of the Maoist army.
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The central committee meeting of the Unified CPN-Maoist concluded here today with a decision to hold party’s long-awaited national convention in January.
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The Nepal Army has refuted a news report published on Republica on its Saturday edition that it turned down the UNDOF and UNIFIL´s proposal for deployment of additional NA soldiers.
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A top-brass meeting of three major political parties - Unified CPN-Maoist, Nepali Congress and CPN-UML - today formed a six-member task force to do groundwork for forming the high-level political mechanism.
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A cabinet meeting recently decided to send Secretary Umesh Prasad Mainali to the President’s Office in Shital Niwas with all the facilities that the government’s Chief Secretary is entitled to. But it is still unclear whether Mainali’s transfer is a promotion.
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Nepal, under increasing pressure from China, was cracking down on Tibetan refugees despite centuries of shared culture with Tibet, the International Campaign for Tibet (ICT) said on Tuesday.
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The Biratnagar branch of Rastriya Banijya Bank (RBB) earned the profit of Rs. 180 million last fiscal year. Despite the opening of many private banks, the bank succeeded in earning the net profit worth Rs. 144.7 million in the fiscal year 2065-066, said branch manager Gopal Prasad Poudel.
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No new industry has been set up in Sunsari-Morang corridor but industries shuttering down are growing continuously for last five years. As many as 180
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factories in the corridor have already been closed down over period, according to Chambers of Industries of Morang (CIM). •
Retailers are reluctant to display price list - retail or wholesale. A survey by The Himalayan Times in New Baneshwor, Bagbazar, Ason, Teku and Kalimati areas found few retail shops displaying the price list. Last Friday, the Department of Commerce (DoC) ordered retailers and wholesalers to display price list of essential goods within three days.
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Nepal Electricity Authority (NEA) is preparing to procure the spare parts for the Multifuel Diesel Power Plant in Biratnagar from Wartsila Corporation, a Finnish firm, within five months.
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Crusher entrepreneurs in Bhairawa have opposed the implementation of export duties on gravel and sand exported to India. Talking at a press conference organized by Nepal Gravel and Stones Entrepreneurs Association, the entrepreneurs said that the government should bring down the export taxes.
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The embassy of Nepal in Australia has underscored the need for expanding business relations between Nepal and Australia through economic diplomacy.
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Nepal Stock Exchange (NEPSE) index witnessed a rise of 7.90 points last week. The contribution of commercial banks remained crucial to maintain the upward trend in NEPSE last week as this group saw the highest growth of 14.51 points. The development banks group also witnessed a growth of 2.66 points.
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Standard Chartered bank dominated the stock market this week with Rs 40.67 million worth transactions followed by Bank of Kathmandu with Rs 39.01 million, Citizens’ Bank International with Rs 38.75 million, Nepal Bangladesh Bank with Rs 31.51 million and Kumari Bank with Rs 30.51 million.
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Sources said that as of Saturday, more than 50 health workers deployed in various diarrhoea-affected villages in the district had returned home due to the lack of coordination among the authorities concerned.
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Nepali and Indian officials discussed possible damage the Koshi River can cause. We agreed to take measures to control any damage the river causes through mutual understandings, said Hari Krishna Upadhyay, Chief District Officer of Sunsari.
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Disposal of solid waste from capital Kathmandu has been disrupted again due to obstructions by some locals in Okharpauwa.
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The daughter of top Maoist leader CP Gajurel has been arrested in France for traveling without documents while seeking asylum from the French government.
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POLITICS: Nepal PM to visit India on August 18 Kathmandu (PTI): Nepalese Prime Minister Madhav Kumar Nepal will visit India this month, his first trip to any neighboring country after assuming power in May this year. "The Prime Minister will start his India visit on August 18, first after assuming power," PM's Foreign Affairs Advisor Rajan Bhattarai said. This will be his goodwill visit to India, he said adding the details of the visit are being worked out. Unlike former Prime Minister and Maoist chief Prachanda who preferred China over India for his first visit to neighboring country, Nepal's tour to New Delhi will be as per the tradition. Foreign Minister Sujata Koirala will leave for New Delhi on August 11 to prepare the grounds for Nepal's scheduled visit, according to sources close to Koirala. Both the visits of the Prime Minister and Foreign Minister are being considered significant here as the country is passing through a difficult transitional period. Meanwhile, addressing a function here to honour veteran communist leader Tulsi Lal Amatya, Nepal said that the government will give top priority to the tasks of taking the peace process to the logical end and to draft the new constitution within May next year. Source: www.hindu.com/thehindu
Nepal-China relation growing to satisfaction in past 54 years KATHMANDU, Aug. 1 (Xinhua) -- Nepal-China relation, based on the five principals of peaceful co-existence, has been growing to the satisfaction of both countries in the past 54 years, said an eminent Nepali sinologist in an interview with Xinhua on Saturday. Nepal celebrated the 54th anniversary of the establishment of diplomatic relation between Nepal and China on Saturday. Niranjan Bhattarai, a veteran diplomat, said, "Nepal-China relation can be dated back to the 2nd century B.C. when Buddhist scholars began exchanges." "Leaders of the two countries mutually exchanged visits, which helps the relation develop and consolidate to the present form," said Bhattarai, 80, who spent more than 60 years studying about China.
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He said Nepal should make timely and fresh endeavors to enjoy togetherness with China via diplomatic ways and that the two neighbors should make continuous efforts to utilize the enormous potential in cooperation. He said Nepal is appreciative of the process of economic development in China. China has been extending its unconditional economic cooperation in many different fields, like transportation, communication, sports, industries and buildings, said Bhattarai. Since the agreement of construction on Arniko Highway was completed in 1961, the trade between Nepal and China has grown tremendously, he said. "Various economic institutions are making efforts to promote bilateral trade and the trade volume is moving towards unimaginable level at a billion U.S. dollars a year," he said Source: news.xinhuanet.com
Federalism could be expensive for Nepal: Dr. Mahat Former Finance Minster of the country and senior Leader of the Nepali Congress party, Dr. Ram Sharan Mahat, has predicted that the Federal Structure for the country would be a highly expensive one. “As there will be several layers of Federal Administrations in the Federal Structure, on financial grounds, it will be a highly expensive one for the country”, Dr. Mahat opined. “A country united for over 240 years all of a sudden decides to adopt the federal model, and that’s why this demanded an intense debate and discussions across the country,” he said adding “except for geographical division of the country no debate has been made over the Financial model of the Federal state.” “If federalism takes either of the models of Linguistic and or Ethnic division, it will pose greatest threats to the sovereignty and territorial integrity of the country”, Dr. Mahat warned. Source: www.telegraphnepal.com Date: 2009-08-02 CA minister claims new constitution will be drafted on time Constituent Assembly member and minister for Federal affairs, CA, Legislature Parliament and Culture Minendra Rijal have expressed his confidence that the new constitution would be drafted on time. Minister Rijal said that minor changes in the CA's statute drafting schedule would not delay the issuance of new constitution.
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Rijal was speaking at a programme in Dharan Saturday. He said some CA committees have not been able to submit the drafts because of the complex nature of the subjects they are working on. Saying that trust among the major parties is a must for writing the constitution, Rijal said the Maoists should join the current government instead of talking about bringing it down. Source: www.nepalnews.com Date: August 01, 2009 Govt is serious about integration of Maoist combatants: PM Prime Minister Madhav Kumar Nepal has said the government is serious about the rehabilitation and integration of the Maoist army. Speaking at a programme marking the 12th death anniversary of communist leader Tulsi Lal Amatya, in the capital Saturday, PM Nepal said the government was aware of the fact that early integration of the Maoist army would mean early conclusion of the peace process. According to him, disqualified combatants will be discharged from the cantonments in the first phase and the integration will be done in the next phase. He, however, did not explain the government's position over the procedures of the army integration. Earlier, PM Nepal had courted controversy for saying in an interview to the Reuters news agency that some 4000 PLA men would be taken in the Nepal Army. Nepal had later denied mentioning the number to the news agency after the ruling allies and some leaders of his UML party criticised him for what appeared to be a soft stance towards the Maoist demand for large scale integration. Dispute over the leadership of the Army Integration Special Committee (AISC) has been a setback for army integration. Two major ruling allies- UML and Nepali Congress- want the Prime Minister to head the committee as before while the Maoists have been demanding that the AISC's composition (previously led by Maoist chairman and then Prime Minister Pushpa Kamal Dahal) must be kept intact. Source: www.nepalnews.com Date: August 01, 2009 Maoist convention on Jan 29 The central committee meeting of the Unified CPN-Maoist concluded here today with a decision to hold party’s long-awaited national convention in January. The central committee has decided to begin the national convention on January 29,
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coinciding the concluding ceremony with the People’s War anniversary on February 13. The UCPN-Maoist had decided to hold national convention during the Chunbang meeting held some five years ago. The party has not held a convention for 18 years. The party is yet to decide whether the upcoming national convention is sixth or seventh. Party spokesperson Dinanath Sharma said the Central Committee drafted a 15-point code of conduct meant for the leaders of the party following the complaints from all sections of the party that the leaders were leading luxurious lives. The central committee also decided to declare Hari Bahadur Khadgi, who died in Nakkhu jail, a martyr. The party will begin central political training from Newa and Tamsaling states on Tuesday. The meeting also decided to form a 15-member Integrated People’s Health Campaign under the leadership of former health minister Giriraj Mani Pokhrel. According to Pokhrel, the team will be concerned about primary health care, drinking water and food and spreading public awareness. The 15-member body includes Dinanath Pravakar, Lokendra Bista, and the constituent assembly members from Jajarkot, Surkhet and Rukum. President of All Nepal Public Health Workers’ Association Mangal BK is also a member, besides CA members Kamala Rokka and Bharat Regmi. The first meeting of the campaign has been scheduled for Sunday morning. The meeting will decide when to leave for the affected areas. Source: The Himalayan Times Date: 08/02/2009
Army ready to send troops to UNIFIL Refutes news in Republica The Nepal Army has refuted a news report published on Republica on its Saturday edition that it turned down the UNDOF and UNIFIL´s proposal for deployment of additional NA soldiers. Issuing a press statement, Directorate of Public Relations, NA, said it has not turned down the proposal for the deployment of 150 additional troops to UNIFIL. The NA, however, said that it was currently awaiting confirmation from the UN headquarters. The statement also made it clear that the Nepal Army is committed to international peace and harmony and would continue to contribute its troops for the noble cause. The NA first deployed its military observers in Lebanon in 1958, but the actual troop deployment took place since 1978. The statement added that UNMIS Force Commander, Major General Pawan Jung Thapa is currently stationed in Khartoum, Sudan, not in Darfur as reported in the news.
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Source: www.myrepublica.com Date: 08/02/2009 Big 3 inch closer to consensus A top-brass meeting of three major political parties - Unified CPN-Maoist, Nepali Congress and CPN-UML - today formed a six-member task force to do groundwork for forming the high-level political mechanism. Narayan Kaji Shrestha ‘Prakash’ and Dev Gurung of UCPN-M, Gopal Man Shrestha and Krishna Prasad Sitaula of NC and Ashok Rai and Bishnu Poudel of the UML are in the task force members. The task force will prepare a proposal soon on modalities and work procedure of the mechanism, the sources said. However, the UCPN-M has demanded PM’s commitment once again to address its concerns before forming such a mechanism. “Though, we have given names for the task force, the mechanism cannot be set up until the Prime Minister addresses our demands as per his commitment one month ago,” said UCPN-M spokesperson Dinanath Sharma. The PM had expressed commitment to hold discussion among the parties to address Maoist concerns on ‘civil supremacy’. The UCPN-M leaders, during today’s meeting, demanded that their concerns be addressed before setting up the mechanism, while NC and UML leaders had suggested that the Maoists’ concerns be addressed through the mechanism. The three big parties are preparing to include major Madhes-based parties — Madhesi Janaadhikar Forum, Tarai Madhes Democratic Party and Sadbhawana Party — in the mechanism, according to the sources. A sub-committee will most probably be formed to encompass other fringe parties in the mechanism, the sources said. However, a decision will be taken in this regard only after discussions with other parties. The mechanism’s main task will be to clear the hurdles delaying the peace process and writing of the new constitution on time. “It will also work to iron out differences on other contentious political issues. It will not bother itself with government’s affairs,” said UML chairman Jhalanath Khanal after the meeting. Prime Minister Madhav Kumar Nepal, UCPN-M chairman Pushpa Kamal Dahal, NC president Girija Prasad Koirala and UML chairman Khanal were accompanied by second rank leaders of the respective parties during the talks held at Koirala’s residence in Maharajgunj. “The mechanism will advise the government to take the peace process ahead smoothly and help write the constitution on time,” a source close to Koirala quoted him as saying. “If you want my involvement in the mechanism I am ready for that,” Koirala told the Maoist and UML leaders Source: The Himalayan Times
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Date: 08/02/2009
Govt hazy on Mainali’s status A cabinet meeting recently decided to send Secretary Umesh Prasad Mainali to the President’s Office in Shital Niwas with all the facilities that the government’s Chief Secretary is entitled to. But it is still unclear whether Mainali’s transfer is a promotion. The decision is aimed at appeasing Mainali, as he has been saying that the government’s earlier decision of not promoting him to the post of Chief Secretary had disappointed him. Mainali, one of the three contestants for the Chief Secretary’s post, has been squirming since the government appointed Madhav Prasad Ghimire, his junior, to the post. Some ministers claim that government promoted him as ‘principal secretary’ at the President’s Office. “The Cabinet principally agreed to give him the title,” said a minister preferring not to be named. According to the ministers, they agreed to do so after studying the model of India. “After studying the model of Indian president’s office, we gave the green signal.” According to him, the Indian president also has a secretary. Before Ghimire’s promotion, Nepali Congress had pressured Prime Minister Madhav Kumar Nepal to appoint Mainali as the Chief Secretary. President Ram Baran Yadav had also requested the government to provide him the post. However, the PM agreed to send him to the President’s Office with equal status like that of the Chief Secretary following a ‘tussle’ between the two parties over the issue. UCPN-Maoist, however, is criticising the attempt of the government to send principal secretary at president’s office, saying that it would empower the President. The government is yet to transfer the promoted 22 secretaries even after a week, thanks to the lack of agreement among the ruling partners. Because of the delay in the transfer, many secretaries are without any work. A cabinet meeting scheduled for tomorrow is likely to take a decision on the transfer of the secretaries. Sources claim that ministers are busy lobbying for the transfer of their kin to their ministries. Hurt, Mainali to quit today? KATHMANDU: Secretary Umesh Prasad Mainali said he was considering resigning on Sunday. Mainali, who is dissatisfied with the cabinet decision to appoint his rival Madhav Prasad Ghimire as the Chief Secretary, said he would quit his post if the government failed to provide promotion letter. “Working for 34 years in bureaucracy, I’ve never been so disappointed as I’m now,” he said. “I’m victimised in the power play of politics.”
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The decision about his status was yet to be cleared by the government and he has not got any official letter about his transfer or upgrade. “I got this harassment as a gift at the fag end of my service; it’s really torturing me. I’m in a mood to resign and I will probably do so tomorrow”” he added. Source: The Himalayan Times Date: 08/02/2009 POLICY: China presses Nepal to crackdown on Tibetans: group KATHMANDU (Reuters) - Nepal, under increasing pressure from China, was cracking down on Tibetan refugees despite centuries of shared culture with Tibet, the International Campaign for Tibet (ICT) said on Tuesday. Nepali authorities have regularly broken up protests by Tibetan exiles and arrested them for protesting against China's crackdown on demonstrations in Tibet. The Washington-based group said Tibetan refugees were "increasingly demoralized" as Nepal "relinquishes its historic and sovereign interests in response to incentivized political pressure from Beijing and its sympathizers." ICT said "pre-emptive arrests of Tibetans, ID checks and house searches" by authorities were contributing to a "widespread sense of fear and insecurity" among the exiles. "Nepal's political leadership is betting that the internal benefits of assuaging China in the cause of oppressing Tibetans will be greater... than the traditional legal and historical concepts," Mary Beth Markey, Vice President at ICT said. Nepali officials did not comment immediately but the impoverished nation considers Tibet as part of China, a key trading partner and aid donor. Kathmandu says Tibetan refugees are free to live in Nepal but cannot carry out any anti-China activities. Nepal is home to more than 20,000 Tibetans who fled the Himalayan region after a failed uprising against Chinese rule in 1959. About 2,500 flee Tibet every year and come to Nepal on way to India where their temporal leader, the Dalai Lama, lives. Source: www.reuters.com Date: Jul 28, 2009
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BANKING: RBB earns Rs 180m Biratnagar, Aug 1 - The Biratnagar branch of Rastriya Banijya Bank (RBB) earned the profit of Rs. 180 million last fiscal year. Despite the opening of many private banks, the bank succeeded in earning the net profit worth Rs. 144.7 million in the fiscal year 2065-066, said branch manager Gopal Prasad Poudel. The bank also recovered the bad debt of Rs. 110 million in the same period, said Poudel. The total expenditure of the bank was Rs 35.3 million, he added. Likewise, Birat Laxmi Development Bank earned the net profit worth Rs. 10. 09 million in the 2065-066 fiscal years against the previous years net profit of Rs. 7. 63 million, according to bank's executive chairman Prabhu Prasad Parajuli. Source: www.kantipuronline.com
BUSINESS & ECONOMY: 180 factories shut down in five years BIRATAGAR, Aug 1 - No new industry has been set up in Sunsari-Morang corridor but industries shuttering down are growing continuously for last five years. As many as 180 factories in the corridor have already been closed down over period, according to Chambers of Industries of Morang (CIM). With the closure these factories, thousands of people have been deprived of employment. The factories that were closed down are related to plastic, readymade garment, zink oxide and oil and ghee. The industrialists have said that all of them were closed down due to increased insecurity, labour problems and bands. Only 15 plastic factories are under operation now although there are 60 such factories in the corridor. Some of factories however have been transferred into Narayangadh and Kathmandu, according to an entrepreneur. Entrepreneurs here say that the some industrialists who closed down their industries have stayed in Kathmandu and some have flown away to India. "How can we run the factories when bands, insecurity and labour strikes always haunt us?" asked Som Nath Adhikari, executive secretary of CIM. The industrialists related to plastic factories say that their condition deteriorated with the increase of excise duty on plastic products in the current fiscal year. With the closure of Nepali factories, Indian plastics are expanding their market in Nepal. Earlier, the Nepali factories used to export plastics to India.
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Likewise, most of the readymade garment industries have also already closed down in the corridor. Only two factories are under operation currently out of 12, said Prasanta Pokharel, president of Garment Association of Nepal. J.B Apparel Factory, one of the big industries of the country had been closed down three months ago. The remaining factories are also under operation with capacity utilization of just 15-20 percent, said Pokharel. The entrepreneurs are of the view that the existing industries will also be closed if the situation is not improved soon. CIM secretary Bhim Ghimire was of the view that the Biratnagar which is recognized as industrial city, was heading towards desertification of industries. An industrialist Kamal Kishor Rathi said that most of the factories were closed and some moved away from the corridor due to excessive bands and power outage for longer period. Source: www.kantipuronline.com
Retailers cock snook at govt Retailers are reluctant to display price list - retail or wholesale. A survey by The Himalayan Times in New Baneshwor, Bagbazar, Ason, Teku and Kalimati areas found few retail shops displaying the price list. Last Friday, the Department of Commerce (DoC) ordered retailers and wholesalers to display price list of essential goods within three days. Monday, DoC sealed five shops — one in Kalimati and four in New Baneshwor— for violating the order. Price list display has become a bone of contention of the government and the private sector. On Wednesday, the Ministry of Commerce and Supply (MoCS) agreed to extend the deadline till August 5 at the request of Nepal Chambers of Commerce (NCC). But, the snail’s pace progress does not augur the price list display order will be implemented on time. Consumer Rights Protection Forum (CRPF) secretary Netra Dhital said, “Shopkeepers are unwilling to display the price list because business organizations are backing them,” he said. NCC had opposed the DoC’s move along with supporting stockists under the investigation of Kathmandu District Administration Office (DAO). The survey by The Himalayan Times found only 17 per cent of retail shops at New Baneshwor displaying the price list. The number is near zero in areas like Teku and Kalimati. “We have decided to disobey the order,” a shopkeeper at Kalimati said, “If the government wants real change, let it act against stockists and wholesellers.” Most shopkeepers surveyed in the area said the action should be taken from the up-todown approach.
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“Retailers are not stockists. How can they influence the market?” said Narayan Sahu of Teku, “We want the price list displayed by wholesellers first. It will reduce the market price to the actual level,” he added. DoC will not stop the action, said DoC acting director Kailash Kumar Bajimaya. “We will swing into action from Thursday. No one, either wholeselller or retailer, can escape from it,” he said. DAO and DoC will work together to curb the price hike. “We will not hesitate to seize goods and sell them on the spot if needed,” he said. The government is planning to enforce three Acts — Consumer Protection Act, Black Marketing and Certain Other Social Offences Act and Competition Promotion and Market Protection Act all at the same time from next week. DoC will also seal all shops which do not display price list, Bajimaya added Source: The Himalayan Times Date: 08/02/2009 NEA seeks Rs 500m for importing thermal plant parts Nepal Electricity Authority (NEA) is preparing to procure the spare parts for the Multifuel Diesel Power Plant in Biratnagar from Wartsila Corporation, a Finnish firm, within five months. NEA has sought an exorbitant Rs 500 million for the procurement, which will be funded through a World Bank loan within this winter. “The generation department has sought Rs 500 million for the import from Wartsila alone. The procurement process is going on for which we are in touch with the Wartsila office in India,” Mahesh Acharya, the Project Coordinator of the Power Development Project (PDP) of NEA, told myrepublica.com. In this connection, the representatives of the Finnish company paid a visit to the capital some two weeks back. According to Acharya, they have said all repair work would be completed in five months time. It will take three months to bring the spare parts from Finland. “We are only waiting for the NEA Board to take a decision on this matter as Wartsila is ready to start the process any time now,” Acharya added. The Biratnagar power plant, which has faced technical problems due to poor maintenance, has the capacity to generate 39 MW, but is currently generating only half of its original capacity as majority of the plant´s parts are now defunct. NEA engineers have said that if the parts are not repaired at the earliest the machines will become obsolete. More importantly, if the work is not undertaken soon it will not be helpful to reduce the load-shedding burden coming winter. “If we are unable to repair it within five months, then the whole purpose is defeated as we need more power upcoming winter,” Chhatra Bahadur Bajracharya, the general manager of the generation department said. He, however, added, “Since the World Bank is ready to fund the project, there should be no further delay.”
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However, NEA officials have expression dissatisfaction over the estimated figure for the procurement and have suspected possible embezzlement during the purchase. “Rs 500 million is an inflated price and the generation department has given no breakdown of the amount,” a high-level NEA official said on condition of anonymity. The source added that some officials are “pressing for tender” for import of spare parts. Asked to comment, Acharya said that since it will be “single-source procurement,” no tender is required. “We are still negotiating with Wartsila,” Acharya said. Moreover, the officials have dismissed all possibilities of importing the parts from India as well. “The parts are not available in India, so there is no question about importing from that country,” Dandapani Basyal, the spokesperson of NEA said. World Bank approved US$73 million additional funding some three months back for the PDP, which include loan for the thermal plants repairing for both Hetauda and Biratnagar. Under the PDP fund, NEA would undertake an overall rehabilitation work in a more appropriate sequence and bring costs savings. Besides maintenance and repair of the thermal plants, other components include rehabilitation of Kali Gandaki, Pathlaiya 132 KV Substation Project and distribution lines in Kathmandu Valley, construction of transmission lines, etc. Source: www.myrepublica.com Date: 08/02/2009
Export taxes hit crusher industry Bhairawa, Aug 1 - Crusher entrepreneurs in Bhairawa have opposed the implementation of export duties on gravel and sand exported to India. Talking at a press conference organized by Nepal Gravel and Stones Entrepreneurs Association, the entrepreneurs said that the government should bring down the export taxes. The government in the budget of the previous fiscal year had fixed the export duty on aggregate exports at Rs. 90 per cubic meter while this year the figures have been raised to Rs. 200 for the same quantity. Similarly the current budget has fixed Rs. 400 as export duty on the export of stones and sand which was Rs. 150 earlier. They also warned the government that if it does not rethink on the export duties then they would start a country-wide protest programme against the hike in the export duty. President of the Federation of Crusher Industry Entrepreneur Krishna Sharma said that the Federation would protest for an hour on Monday in front of the major custom offices of the country and later on would continue with other protest programmes. Sharma says, "The government has increased the export duties in the name of environment degradation, and has said that the extraction of gravels could have adverse effect on the environment."
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The government should first conduct a study and only after the approval of the report can it impose such high taxes on the exports, added Sharma. The entrepreneurs have also said that the government on one hand has increased the export taxes in the name of environmental degradation while on the other it also has been allowing new firms to enter the industry for the revenue it generates. Source: www.kantipuronline.com
FNCCI calls for Oz investment KATHMANDU, Aug 1 - The embassy of Nepal in Australia has underscored the need for expanding business relations between Nepal and Australia through economic diplomacy. The notion was stressed during the Nepal promotion programme -- Nepal Business and Development Forum in Australia, which was organised in the presence of a Federation of Nepalese Chambers of Commerce and Industry (FNCCI) delegation led by its president Kush Kumar Joshi. The programme was jointly organised by the Embassy of Nepal in Australia and Office of Nepal's Consular General last week in Canberra, Australia, said FNCCI. Addressing the programme, FNCCI president Joshi appealed to Australian investors to invest in Nepal. He said that since the country was located in between two big markets - India and China, Nepalis products could be easily exported to these countries without any hindrance. On the behalf of Nepali private sector, he also made commitment for the full security of foreign investment in Nepal by Australian investors. Yogendra Dhakal, Nepali ambassador to Australia, said that the outcome from the programme would be fruitful for identifying new fields of investment and attracting foreign direct investment in Nepal. Participants in the programme discussed business opportunities in Nepal. Source: www.kantipuronline.com
MARKET: NEPSE continues to climb up on the back of banks, stock market shows gains KATHMANDU, Aug 1 - Nepal Stock Exchange (NEPSE) index witnessed a rise of 7.90 points last week with the index going up to 716.01 points in the final day of trading on Thursday from 708.11 points in the first day of trading on Sunday.
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Although the index reached as high as 730.64 points on Monday, it came down in the following days to settle at 716.01 points on Thursday. The contribution of commercial banks remained crucial to maintain the upward trend in NEPSE last week as this group saw the highest growth of 14.51 points. The development banks group also witnessed a growth of 2.66 points. But, all other groups witnessed negative growth. The trading group saw its index declining by 10.80 points followed by hotels with 2.90 points. The index of hydropower group also went down by 2.88 points followed by a decline of 2.18 points in case of finance companies. The group comprising insurance companies witnessed a decline in its index by 0.58 points. The index of manufacturing sector remained constant at 434.32 points the entire week. The group categorized as others also saw zero progress in its index. The shares of 82 companies were traded in NEPSE last week. As many as 711,600 units of shares worth Rs. 472.80 million were traded via 5,716 transactions. The turnover also increased by 15.91 percent last week compared to the previous week. As many as 754,100 units of shares worth 407.90 had been traded via 4,303 transactions in the previous week. Of the total transactions, 'A' class companies saw a transaction of Rs. 268.8 million which stands at 56.86 percent of total turnover. The sensitive index that measures the transaction of 'A' class companies also went up by 7.90 points to 190.46 points. Standard Chartered Bank topped in terms of turnover with Rs. 40.6 million whereas the National Hydro Power Company topped in terms of number of shares traded which stood at 99,000 units. Citizens Bank International topped in terms of number of transactions.
Weekly review Date
Total Turnover (Rs. in million) Nepse Index (in points)
30/07/09 29/07/09 28/07/09 27/07/09 26/07/09
82.57 104.32 100.26 109.31 76.31
716.01 721.49 729.05 730.64 708.11
Top Five in turnover Company Turnover
Amount
Standard Chartered Bank of Kathmandu
40.67 39.01
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Citizens Bank Int'l Nepal Bangladesh Bank Kumari Bank
38.75 31.36 30.51
Source: www.kantipuronline.com
Standard Chartered rules Nepse roost Standard Chartered bank dominated the stock market this week with Rs 40.67 million worth transactions followed by Bank of Kathmandu with Rs 39.01 million, Citizens’ Bank International with Rs 38.75 million, Nepal Bangladesh Bank with Rs 31.51 million and Kumari Bank with Rs 30.51 million. In terms of number of share units traded National Hydropower Company topped the chart, with 99,000-unit shares changing hands while in terms of number of transactions Citizens Bank International topped the chart with 882 transactions. The secondary market this week lost 21.83 points to drop to 716.01 points from last week’s closing of 737.84 points. However, the transaction amount increased by 15.91 per cent to reach Rs 472.82 million against last week’s Rs 407.91 million. The 78-scrip sensitive index sensitive index — the barometer of Group-A companies — plunged 7.31 points to 190.46 points from last week’s closing of 197.77 points. The shareholders of almost all the groups lost this week, pulling the float index — calculated on the basis of real transactions — down by 1.99 points to 69.16 points from last week’s closing Source: The Himalayan Times Date: 08/02/2009 GENERAL: Diarrhoea raging, but medics return Jajarkot/NEPALGUNJ, Aug 1 - At a time when hundreds of people are still dying due to the lack of health workers and medicines, dozens of health workers deployed in diarrhoea-hit Jajarkot district have started returning from the district. Sources said that as of Saturday, more than 50 health workers deployed in various diarrhoea-affected villages in the district had returned home due to the lack of coordination among the authorities concerned. In the latest episode of this kind, 24 health workers recently returned to Nepalgunj from the district, through Chaurjahari of Rukum. According to them, they had returned because they could not find food and shelter and no one was ready to offer
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the necessary help in the areas--all because the concerned authorities couldn’t coordinate things among themselves. “Our six-member medical team was compelled to return since the authority there did not respond to them,” said Dr. Jitendra Mahaseth, community director at Kohalpur Teaching Hospital. Similarly, an eight-member medical team from Kathmandu Teaching Hospital also returned from district headquarters Khalanga because they did not have vehicles to reach the affected areas. Sources further claim that some health workers deployed by the Nepal Medical Association and Bir Hospital had also returned from Jajarkot. Likewise, health workers from Birendra Police Hospital Kathmandu, who had been providing treatment at Dali and Sakla villages, left the area after 21 days. “We had to overcome so much while we were there, and because no help was forthcoming, we decided to leave,” said Dr. Pankaj Chaudhary, the head of the police medical team. He claimed that it took three more months to bring the epidemic under control because of such circumstances. And as if the lackadaisical attitude displayed towards the medics weren’t enough, local administration and the District Public Heath Office (DPHO) say they are still unaware about the arrival and return of the health workers and medicines in the district. “We are yet to know the exact number of health workers working in the district and those who have already returned,” said Dr. Krishna Hari Subedi, chief at DPHO Jajarkot. Meanwhile, three more people died of the epidemic in the district on Saturday. With that, the death toll within the past three months has reached 184. Source: www.kantipuronline.com
Joint bid to tame Koshi threat Itahari, Aug 1 - Nepali and Indian officials discussed possible damage the Koshi River can cause. We agreed to take measures to control any damage the river causes through mutual understandings, said Hari Krishna Upadhyay, Chief District Officer of Sunsari, who led the Nepali team during the meeting. The Indian team was led by the DM of Supoul of Bihar State Kumar Ami. The meeting reached to a conclusion to protect the eastern embankment of the river and repair of Koshi Barrage holding discussions among the both sides, said Upadhyay.
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We dwelt on the steps to be taken for the protection, reconstruction and repair of the barrage, embankment washed away by the river recently in Kusaha and spur maintenance, the CDO said. He said that they also agreed to control the possible threat of inundation in Pathegaunda posed by the increasing water flow to the spurs. Meanwhile, the Water Induced Disaster Control Office, Biratnagar, informed that repair of the spurs affected by the Koshi in Palthegaunda has begun after the concerned authority allocated necessary budget. Source: www.kantipuronline.com
Garbage disposal obstructed again Disposal of solid waste from capital Kathmandu has been disrupted again due to obstructions by some locals in Okharpauwa. Garbage trucks have not been sent to Okharpauwa for waste disposal since Saturday morning after a group of people in Okharpauwa obstructed the disposal and told not to bring any garbage containers until an ‘agreeement’ is reached. Officials at the Kathmandu Metropolitan City have said it was not clear what their demands were. Garbage disposal had resumed briefly Friday after an agreement between the government and the representatives of Sisdole Waste Management Concern Committee (SWMCC). However, obstructions started since Friday afternoon from a different group. Only about 36 trucks of garbage was disposed on Saturday as compared to a daily average of 80 trucks. Garbage from various parts of the city was collected and taken to the transfer station in Teku on Friday and Saturday. However, as the garbage could not be transferred to the landfill site in Okharpauwa, the transfer station has also been filled. Locals in Teku padlocked the transfer station briefly Saturday afternoon after the garbage piled up in the transfer station emanated a stench. They opened the lock after KMC officials agreed not to bring any more garbage to the transfer station until it was emptied. The SWMCC had agreed to allow the disposal of garbage at the landfill site after the government agreed to meet some of their demands immediately and address others seriously in coordination with the affected people. On Thursday, the government and the representatives of the committee signed a sixpoint agreement including construction of a five-bed hospital, providing job-oriented training to 50 youths of the affected area, at the Ministry of Local Development.
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The committee had obstructed the disposal of waste demanding improvement of physical infrastructure in the affected area and adopting international environment standards while constructing the landfill site and disposing waste. It has demanded for an arrangement of alternative landfill site saying the existing landfill site in Okharpauwa has already been used beyond its capacity. The government has agreed to expedite the works on developing Bancharedanda as an alternative landfill site. Source: www.nepalnews.com Date: August 02, 2009 France arrests Gajurel's daughter, refuses asylum The daughter of top Maoist leader CP Gajurel has been arrested in France for traveling without documents while seeking asylum from the French government. Shova Gajurel, whose father is in charge of the international affairs of the Unified CPN (Maoist), is being held at the Lesquin Administrative Retention Centre in Lille town in northern France where foreigners found guilty of violating immigration laws are detained. Shova was traveling to the France-Belgium border to meet friends when she was arrested last week near Valenciennes, a commune in northern France. Shova, a member of the Maoist party, had applied for asylum in France but her application was turned down. She had re-applied, saying her life would be in danger if she returned to Nepal. It was not clear immediately why she feels her life is endangered in Nepal since the Maoists are no longer a banned organization. Both her parents and children are still living in Nepal. Maoist sympathizers in France are urging the Sarkozy government to grant Shova asylum, saying that since the fall of the Maoist government in May, the situation has become tense in Nepal. Shova’s father CP Gajurel was not available for comments. Gajurel was caught in India’s Chennai Airport during the insurgency while trying to fly out to Germany on forged documents. He was jailed for three years and freed after the signing of the peace pact in 2006. Source: www.myrepublica.com Date: 08/02/2009
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