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Date: August 11, 2009
Highlights
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The foreign ministers of Nepal and India will hold their first meeting in New Delhi Tuesday since the formation of a new government in Nepal and ahead of Nepal Prime Minister Madhav Kumar Nepal’s first official visit to India starting August 18.
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Visiting Foreign Minister Sujata Koirala held dialogues with India's foreign Secretary Nirupama Rao, CPI-M Leader Sitaram Yechuri, Nepal Democracy Solidarity Committee President Prof DP Tripathi and JD (U) leader Sharad Yadav here today. The talks were focused on the issues of bilateral concerns, including Nepal's economic development, Indian investment in Nepal, enhancement of bilateral trade, climate change, among others.
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Constituent Assembly chairman Subas Chandra Nembang today announced that the election for the CA Constitutional Committee chairman would take place on August 17.
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Maoist CA members have proposed a provision in the new constitution to prevent the executive from dissolving the parliament frequently to ensure political stability in the country. Speaking at the CA meeting on Monday, Maoist CA member Nanda Kumar Prasai said, "The constitution should discourage the executive from dissolving parliament frequently."
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Unified CPN (Maoist) Vice-Chairman Narayan Kazi Shrestha has said that the government should now be prepared to face the 'grave consequences' of the month-long nationwide agitation Maoists are waging to restore 'civilian supremacy' and national sovereignty.
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Paramananda Jha, who has been at the center of deepening controversy after the Supreme Court nullified his oath of vice president taken in Hindi, has once again spit venom on Chief Justice Min Bahadur Rayamajhee. Jha on Monday wrote to the apex court that the verdict was a result of his personal enmity against the chief justice.
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China and Nepal are engaged in developing modern infrastructural ways and means to further secure their bilateral ties. Although transport and road seem entirely a physical capital, both the neighbors share the critical wisdom that road-building is a sacred task undertaken for mutual prosperity, security and territorial integrity.
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Nepal will formally request India to construct the East-West electric railway line from Mechi to Mahakali and another railway line between Birgunj and Kathmandu when Foreign Minister Sujata Koirala meets her Indian counterpart S. M. Krishna and Foreign Secretary Nirupama Rao in New Delhi. 1
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Eastern Nepal faces the shortage of Indian notes for exchange after the number of Nepali pilgrims, patients and traders increased to visit India. According to Biratnagar Branch of Nepal Rastra Bank, it has been exchanging around Rs 1,500,000 Indian currency to fulfill the demands.
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Despite a decline in the financial transactions, commercial banks have been opening offices at a greater pace in Janakpur. KIST Bank was the latest bank to open its branch in Janakpur. On Monday, its 27th branch was opened. Siddhartha Bank, Jyoti Bikash Bank and Sunrise Bank are also preparing to open their branches here.
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Nepal Oil Corporation (NOC) is bringing high octane petrol and diesel of Euro III standard from April 2010, which will give better mileage and increase engine efficiency -- something that will delight automobiles owners and dealers alike.
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Nepal Satellite Telecom (NST) Pvt Ltd is set to soft launch its GSM sim cards. According to the company, NST under Nepal Telecommunication Authority (NTA) will soon provide its voice and data services. NST will start services from September 24.
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Gorakhkali Tyre Industry, which has been closed for the last one month, resumed operations on Monday.
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The Federation of Contractors' Association of Nepal (FCAN) has demanded that they be compensated for the price hike of construction materials being used in the projects built with Indian grants.
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Around one-third of Nepalis aged above 15 years are in job-market looking for work. About 30 - 38.2 per cent males and 22.8 per cent female - have not utilised their capacity, according to second National Labour Survey released here today.
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Each household which has a family member working abroad receives an average remittance of Rs. 80,462 per year. The Labour Force Survey 2008 carried out by the Central Bureau of Statistics (CBS) revealed that 30 percent of the households receive remittances either from inside or outside the country.
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The Nepal Stock Exchange (NEPSE) Monday fell by 3.32 points. The sensitive index also declined by 1.01 points. The finance sector was the highest gainer on NEPSE as it rose by 2.76 points followed by the hydropower sector which rose by 0.32 point.
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A top UN expert has highlighted a number of ongoing human rights concerns related to "a history of discrimination" against the rights of indigenous people, also known as Adivasi Janajati, and said "much remains to be done" to advance their rights.
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The number of patients of A (H1N1) viral infection - swine flu - has been surging in India but the government of Nepal is still waiting for the outbreak at community level in order to bolster their strategy to tackle the same. The health desks established in the border areas with the task of carrying out health checks on the incoming people two months ago are either without staff or have already shut.
POLITICS: India-Nepal foreign ministers' meet tomorrow KATHMANDU: The foreign ministers of Nepal and India will hold their first meeting in New Delhi Tuesday since the formation of a new government in Nepal and ahead of Nepal Prime Minister Madhav Kumar Nepal’s first official visit to India starting August 18. Sujata Koirala, Nepal’s new foreign minister, left for New Delhi Monday, accompanied by foreign secretary Gyan Chandra Acharya, for a five-day goodwill visit at the invitation of Indian External Affairs Minister S M Krishna. “Since Nepal and India share an open border, border troubles will certainly figure in our talks as well as the 1950 treaty, security and other issues of bilateral interest,” Koirala told TNN. “However, my visit will focus on economic diplomacy. With India becoming an economic superpower, economic development is the main agenda.” Koirala will prepare the ground for Commerce and Supplies Minister Rajendra Mahato, who will be part of Nepal’s delegation. “There are a lot of Indian investors and Indian businessmen in Nepal,” Koirala said. “We want more Indian investment. For that, the Nepal government is seeking to guarantee security and protection of investment. Indians will be treated like Nepalis.” Three memorandums of understanding are likely to be inked between the two countries this month. The revised Indo-Nepal transit treaty will increase the life span of the pact from five to seven years while a bilateral investment protection agreement will also be formulated. The two neighbors will also work out a double taxation avoidance agreement. Nepal is keen to woo greater Indian investment in hydropower ventures. The Nepali prime minister’s visit will try to push the 5600MW Pancheswor multipurpose project as per India’s desire. However, Koirala made it clear that no controversial deal would be signed since all such pacts would have to be referred to the parliamentary parties for consensus.
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The new border delineation would not be formally signed either though Nepal would raise the issue of encroachment and inundation. Koirala said she would table the report by Nepal’s parliamentary committee that has enumerated several instances of border encroachment in southern Nepal and expressed concern at Uttar Pradesh planning a tiger reserve that goes inside Nepal territory. The controversial 1950 treaty of friendship would also be discussed. However, Koirala made it clear that economy would be the chief agenda. After meeting Krishna, the Nepal foreign minister is Minister Dr Manmohan Singh Wednesday as well as Gandhi. She will also meet Commerce Minister Anand Pranab Mukherjee, Defence Minister A. K Antony Chidambaram.
scheduled to meet Prime Congress president Sonia Sharma, Finance Minister and Home Minister P.
Koirala, daughter of former Prime Minister Girija Prasad Koirala, will spend the last day of her visit interacting with the Nepali community in New Delhi. Source: http://timesofindia.indiatimes.com
FM calls on Indian leaders Visiting Foreign Minister Sujata Koirala held dialogues with India's foreign Secretary Nirupama Rao, CPI-M Leader Sitaram Yechuri, Nepal Democracy Solidarity Committee President Prof DP Tripathi and JD (U) leader Sharad Yadav here today. The talks were focused on the issues of bilateral concerns, including Nepal's economic development, Indian investment in Nepal, enhancement of bilateral trade, climate change, among others. After her meeting with Rao, Koirala said she sought India's help in Nepal's economic development and industrialisation. Rao said that India valued its age old and historic relations with Nepal and was committed to take those relations to new height by extending helps in all areas of cooperation, according to Koirala. Koirala and Rao also discussed the issues of peace process, ways to bring it to logical conclusion, and establishing special economic zones in Nepal for Indian investors in order to provide security to existing Indian investors in Nepal and woo the new Indian investors in the country. "We must do something about it because some of the Indian investors have left the country and others are in doldrums because of political unrest and other problems," Koirala said. India is likely to provide assistance of equipments to Nepal police to check cross border crime. "We do not have modern communication equipments in the border. Not even enough cordless phones. Sometimes it takes long time to inform Indian
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counterparts about border crimes but by then it is too late to nab the criminals," Koirala added. When asked if any agreement was to be signed during her visit, she said she did not discuss any specific issues with Rao. “We aren't going to sign any issues that will have long term implications. That will be done only when the current transition ends and we have new elected government," Koirala clarified. With her meeting with Yechuri, Koirala apprised the former of latest political development including the idea of forming a high level political mechanism. When asked if he wanted to see the Maoists at the helms of affairs again, Yechuri said it was entirely for the people of Nepal as to who they want to lead the government. He, however, said his party wanted to see Nepal having a new constitution by May 2010, the stipulated time. He also said that PM Madhav Kumar Nepal had invited him to Nepal to facilitate the political process that had been complicated ever since the Maoists quit the government. Yechuri said he was likely to visit Nepal after PM Nepal's visit to India. Nepal is scheduled to come to India on August 18. "There is a fundamental difference between the Maoists of Nepal and India: in Nepal, they’ve joined democratic process whereas the Maoists here still believe in violence," Yechuri said in response to a query Source: The Himalayan Times Date: 08/11/2009
CC chief poll on Aug 17 Constituent Assembly chairman Subas Chandra Nembang today announced that the election for the CA Constitutional Committee chairman would take place on August 17. He made this announcement after consulting the chief whips and other leaders of major political parties at his office. The CA secretariat has published a notice to this effect. The CA chairman was in favour of holding the election by the second week of August but the UCPN-Maoist and CPN-UML leaders suggested that it would be appropriate to hold the election prior to Prime Minister Madhav Kumar Nepal’s visit to India, coinciding with UCPN-Maoist chairman Prachanda’s return from London. Both Prachanda and Nepal are the members of the Constitutional Committee, whose task is to prepare draft of the new constitution based on the concept papers prepared by the 10 thematic committees. It is also tasked with preparing a concept paper on areas, including the preamble, not covered by the thematic committees. The
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committee has been unable to prepare its concept paper due to the absence of its chairman. The PM is embarking on a five-day visit to India beginning August 18 and Prachanda is returning home on August 16. The CC top post fell vacant after Nepal, who used to head the committee, was elected the PM on May 23. According to the CA regulations, the CC chief should be elected within a month of the post falling vacant. UCPN-Maoist’s central secretariat has decided to field Dr Baburam Bhattarai as a candidate for the post while Nepali Congress is likely to project Nilambar Acharya. Voting is imminent if the main parties fail to agree on a single candidate Source: The Himalayan Times Date: 08/11/2009 Maoists lobby for powerful legislature Maoist CA members have proposed a provision in the new constitution to prevent the executive from dissolving the parliament frequently to ensure political stability in the country. Speaking at the CA meeting on Monday, Maoist CA member Nanda Kumar Prasai said, "The constitution should discourage the executive from dissolving parliament frequently." He argued that parliament should be made powerful enough so that the executive cannot dissolve it, which he said, would pave the way for political stability. He said the political parties should forge consensus on constitution-making. The CA is currently holding discussion on the reports prepared by its committee to determine the form of legislative bodies. The committee has proposed a bicameral legislature in which House of Representative will have 151 members and National Assembly 51 members. The Maoists have registered a note of dissent demanding unicameral legislature. Nepali Congress (NC) lawmaker Suprabha Ghimire argued that it would not be relevant to discuss the legislature´s form as the CA is yet to finalize the state restructuring model. NC lawmakers Arjun Prasad Joshi opined that the members of the lower house should be elected directly and the upper house proportionally. Source: www.myrepublica.com Date; 08/11/2009
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Maoists tell govt to face 'serious consequences' for refusing to address 'civilian supremacy' issue Unified CPN (Maoist) Vice-Chairman Narayan Kazi Shrestha has said that the government should now be prepared to face the 'grave consequences' of the monthlong nationwide agitation Maoists are waging to restore 'civilian supremacy' and national sovereignty. Speaking at a press meet organized by Tamuwan State Council in Pokhara Monday, Shrestha, who is also the deputy parliamentary party leader of the UCPN (Maoist), said that the Maoists have also started the protest movement to exert pressure (on the government) for integration of former Maoist combatants into Nepal Army, timely drafting of constitution and taking the ongoing peace process to its desired conclusion. He also hinted that the Maoist agitation might be the beginning of the 'third People's movement ', if the aforementioned demands are not met. The second people's movement waged by various political parties including ruling CPN-UML, Nepali Congress and Maoists had toppled the royal regime in 2006. He blasted at the 'reactionary forces', the usual Maoist punch bag, "for trying to impose traditional parliamentary system in the country against the people's wishes, wanting foreign intervention to continue, not wanting to see integration of Maoist combatants into NA and favouring military supremacy over civilian supremacy". "While continuing our agitation against all this, we would also keep the doors for consensus and cooperation open," he said. Shrestha said Prime Minister Madhav Kumar Nepal's statement that the government will suppress the Maoist agitation if it threatens to turn into a 'people's revolt' is very careless and will only push the country towards more confrontation. He again reiterated that the Maoists will under no circumstances join the 'puppet government' led by UML. The Maoist party had announced stir from Friday with the expiry of the four-day ultimatum to the government to address the contentious issues of 'civilian supremacy', including what it called 'unconstitutional move' of the President vis-Ă -vis the Army chief row. The main opposition party had staged demonstrations in different parts of the country Sunday as part of its month-long protest movement. In Kathmandu, Maoist leaders and cadres took out demonstration rallies. Similar demonstrations were organised outside the capital. There were no reports of violence or arrests during the largely peaceful Maoist demonstrations. Source: www.nepalnews.com Date: August 10, 2009
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Jha spits venom on CJ Paramananda Jha, who has been at the center of deepening controversy after the Supreme Court nullified his oath of vice president taken in Hindi, has once again spit venom on Chief Justice Min Bahadur Rayamajhee. Jha on Monday wrote to the apex court that the verdict was a result of his personal enmity against the chief justice. A division bench of CJ Rayamajhee and Justice Bal Ram KC had nullified Jha´s oath taken in Hindi a year ago. Hindi is not an official language in Nepal. Jha has been alleging that the chief justice was biased while passing the verdict. Chief Justice Rayamajhee, however, does not subscribe to the allegation. Talking to Republica, Rayamajhee said he just upheld the judicial principle of fairness while nullifying Jha´s Hindi oath. “I was not biased and unfair while delivering the verdict,” said Rayamajhee, adding, “Let him say whatever he likes, I don´t want to comment any further.” Jha has accused Chief Justice Rayamajhee of violating judicial norms while passing the verdict. The apex court last week issued a show cause notice against Jha asking him to furnish a written explanation regarding the oath controversy. A case was filed against Jha for contempt of court after he lambasted the court´s verdict, terming it ´biased´ and ´meaningless.´ Jha, in his statement, said his relations with Rayamajhee turned bitter after the former´s promotion. “We were good friend in the early days, but when I was promoted to SC justice our relations soured,” Jha argued in his reply. Jha also said he would never accept a verdict by a rival like Rayamajhee. “Rayamajhee shouldn´t have handled my case as he is my open enemy,” Jha has said. But Chief Justice Rayamjhee said Jha´s accusations are baseless. “The SC bench will again hear his case and reach a conclusion,” Rayamajhee told myrepublica.com. Jha has also questioned the jurisdiction of the judges. “The judges have no jurisdiction to nullify my oath taken in Hindi,” he further said in the statement. He has argued that the court´s verdict nullifying his oath had violated his linguistic rights. “Everybody has the freedom to pass fair comment on the verdict and order of the court,” Jha said, adding, “I also did the same and that does not mean that I showed contempt of court.” Jha accused the court of forgetting its jurisdiction. Jha has requested the apex court to quash the case filed against him on charge of contempt of court, arguing that the verdict has attacked the linguistic rights of
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Madhesi people. “I was hurt by the court´s decision and so I expressed my comments but my intention was not to disregard the court´s verdict,” he said. Source: www.myrepublica.com Date: 08/11/2009
POLICY: China and Nepal for multiple connectivity China and Nepal are engaged in developing modern infrastructural ways and means to further secure their bilateral ties. Although transport and road seem entirely a physical capital, both the neighbors share the critical wisdom that road-building is a sacred task undertaken for mutual prosperity, security and territorial integrity. Three agreements that both the countries signed five years ago in Beijing on Nepal's use of a road in China's Tibet Autonomous Region (TAR) to transport goods, a bridge across the borders of the two countries and automobile transportation duly underlined this significant aspect of contemporary bilateral ties (People's Daily, 17 August 2004). Roads receive top developmental priority in Nepal. The country has a very low road density among the South Asian countries. Roads account for 8 percent of the total development budget of Nepal and 74 percent of the development budget of the transport sector. Building link-road to connect the district headquarters with the national road network is vital for Nepal's underdeveloped mountainous parts mostly in the north-west region. Last year's bilateral activities have witnessed progress towards realization of this most felt-need in Nepal. In December 2007, the Government of Nepal (GON) and Tibet Hongji Construction Industrial Group signed an agreement in Kathmandu to implement a delayed Chinese assisted Syafrubesi-Rasuwagadi road project. Foreign Minister Yang Jiechi, the senior-most Chinese leader to visit Nepal (December 2008) in recent years, initiated the construction of this road project linking TAR with Nepal. Chinese government had agreed in 2001 to help Nepal construct this 16- km (10 mile) road in Rasuwa district of central Nepal. The road now under construction starts from 100 meter away from existing bridge across China-Nepal border. The road in a modern sense will restore the link central Nepal had with China through the famous ancient trade gateway of Kerung (Gyirong or Chilun) in Shigatse (or Shigatze) Prefecture of TAR(a sketch map attached) . The road expected to be completed by mid 2011 will link central Nepal with Chinese highway G219. It will be the second road providing Trans-Himalayan link between Nepal and TAR, China. The first 80-km road linking Nepal's capital Kathmandu with Khasa (Zhangmu) on Nepal-China border in Tibet was built by China in mid 1960s. Historically, it was the first infrastructural link that underlined Nepal's advantageous geographic position vis-
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à -vis both China and South Asian hinterland for facilitating cultural and economic interactions between them. China, a major development partner of Nepal, has been helping landlocked Nepal in basic infrastructure construction like roads. It wants to boost economic cooperation between the two countries on the foundation of sound infrastructure. China’s response to Nepal's infrastructural need holds the potential to extend the road construction to Nepal's more remote far north-west region in the years ahead. For example, Ali (Ngari), another Prefecture of TAR, plans to build more road links to China-Nepal border (The Rising Nepal, 6 August 2008) with very remote Bajhang, Humla and Darchula districts on Nepali side. In addition to the second road link, Nepal has keenly been observing the historical and landmark infrastructure development that has taken place in TAR under China's West China Development Strategy. Nepal is impressed as well as encouraged by the quality and sustainability of this development, which underlines forward linkages with matching infrastructure development on Nepali side. As such, of late, GON has rightly been highlighting the benefits of better connectivity between Nepal and China by all means of transport including railways. Respecting the development aspiration of Nepali people, a visiting Chinese Communist Party (CPC) delegation led by Ai Ping, Director General, Asia Department of the CPC during a meeting in April 2008 told the then prime minister of Nepal Girija Prasad Koirala that Chinese government has begun the railway extension project on its side to extend it to Nepal-China border. The railway link would be ready in 2013 (AFP, 26 April 2008). According to a Nepal's Ministry of Foreign Affairs press release (3 December 2008), Nepal and China have agreed to make the best use of the existing geographical advantage to expand relations between Nepal and TAR. Recently, Chinese ambassador to Nepal Qiu Guohong giving more details about the proposed transport development activities in the TAR informed that extension of Qinghai-Tibet railway from Lhasa to Shigatze, and from Shigatze to Nyalam, a county in Shigatze prefecture with Khasa (Zhangmu) as one of its towns bordering on Nepal, has been listed in the Medium and Long-term Railway Network Planning of China. In his assessment, "The extension of Qinghai-Tibet railway to the China-Nepal border will have a positive influence on establishing new China-Nepal road links‌" The ambassador further emphasized that such link does not only promote bilateral economic cooperation but also trade between China and South Asia (Nepali Times, 24 April 2009). As a follow-up measure, Chinese side has been upgrading infrastructure in Khasa (Zhangmu) Pass and the surrounding area. The measure is complemented by a plan to construct a dry port near Tatopani on Nepali side. A multilateral donor Asian Development Bank (ADB), Manila has strategy to add further value to Chinese assisted Syafrubesi-Rasuwagadi road link. Under its road connectivity project (2007-2012), a strategic approach is adopted to improve road connectivity between Nepal's relatively accessible southern areas to remote areas
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mostly in the northern mountainous region. “Rehabilitating and expanding feeder roads will help promote inclusive social and economic development,” says Nianshan Zhang, an ADB Portfolio Management Specialist. ADB adopted this strategy under the recommendation of a study conducted for GON's economic policy network (September 2005). The author of the study senior consultant-engineer Iswer Raj Onta, who is also chairman of Nepal Engineering Council, told this writer that the study recommended to improve proposed 80-km Galchhi-Trisuli-Syabrubesi highway under the ADB-funded road connectivity project to an ‘international highway’ level. The recommendation helps optimize the benefits to be accrued from the Chinese assisted Syfrubesi-Rasuwagadi road. It should be noted that the Galchhi-Trisuli-Syabrubesi highway when constructed will be linked not only with Chinese highway G219 through Syfrubesi-Rasuwagadi road but also with Chinese-built Kathmandu-Pokhara Highway and its connectivity in southern Nepal. To optimize benefits of such connectivity, Onta however underlined two needs, "First, include 'international highway' category in Nepal's current road classification and second, conclude a comprehensive transportation treaty between China and Nepal." Improved and multiple China-Nepal connectivity if duly backed by mature and sober state as well as people's diplomacy can modernize the relationship between the two ancient countries according to the needs of the 21st century geo-politics. Such a development also imbibes imminent prospect of laying a cost-effective but superior technology-intensive trade and travel corridor across China, new West and South Asia. Source: http://www.telegraphnepal.com
Nepal wants India to build East-West rail line KATHMANDU, Aug 11 - Nepal will formally request India to construct the EastWest electric railway line from Mechi to Mahakali and another railway line between Birgunj and Kathmandu when Foreign Minister Sujata Koirala meets her Indian counterpart S. M. Krishna and Foreign Secretary Nirupama Rao in New Delhi on Monday and Tuesday, respectively. Minister Koirala will forward the proposal officially, a senior foreign ministry official told the Post. Speaking to reporters before departure, she said no controversial treaty would be signed during the visit. Upon the request of Ministry of Physical Planning and Works, Koirala will try to persuade the Indian authorities to construct the rail line, which, according to a study, will cost US $ 2.07 billion. “We have shortlisted six out of 19 firms to carry out feasibility study of the railway line. The shortlisted firms will have to submit their reports by the end of the next fiscal year,” Tulsi Prasad Sitaula, joint secretary at the Ministry of Works, told the Post.
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The railway will comprise a single track of 1,027 kilometers along the East-West highway and will serve 17,988 passengers per day, when it is completed in 2011. By the year 2034, the rail line will serve 205,871 passengers per day. The construction of the 135-kilometer-long Kathmandu-Birgunj railway line could cost Rs. 13.5 billion, according to a study carried out in 2003. Koirala will also be taking up the issue of equal pension rights for 4,000 Gurkha exservicemen who served in the Indian Special Frontier Force. The force was conceived in the post Sino- Indian war period as a guerrilla force. She will be inviting private Indian investment in hydropower, private hospital and tourism, according to the official. Source: www.kantipuronline.com
BANKING: Shortage of Indian notes Biratnagar, Aug 10 - Eastern Nepal faces the shortage of Indian notes for exchange after the number of Nepali pilgrims, patients and traders increased to visit India. According to Biratnagar Branch of Nepal Rastra Bank, it has been exchanging around Rs 1,500,000 Indian currency to fulfill the demands. The bank provides Rs 50,000 to each of the 20 money exchange depots and around Rs 500,000 for general public every day. The visitors get around Rs 2,000 to 25,000. General public get shortage of Indian notes in the market. Source: www.kantipuronline.com
Banks rush to set up shop in Janakpur JANAKPURDHAM, Aug 10 - Despite a decline in the financial transactions, commercial banks have been opening offices at a greater pace in Janakpur. KIST Bank was the latest bank to open its branch in Janakpur. On Monday, its 27th branch was opened. Siddhartha Bank, Jyoti Bikash Bank and Sunrise Bank are also preparing to open their branches here. Among the banks which already have their branches in Janakpur include Everest Bank, Nepal SBI Bank, Nepal Investment Bank, Bank of Kathmandu, Laxmi Bank, NIC Bank and Nepal Bangladesh Bank.
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The opening of new bank branches in Janakpur has increased investment opportunities for local residents. These banks have also made it easier for the locals to borrow as well deposit money at much reliable financial institutions. Chairman of the Nepal Chamber of Commerce Dhanusha, Shyam Prasad Shah, said that another reason behind the establishment of so many banks is the fierce competition among them. He added that the banks have been providing reasonable interest rates to the locals here. Dharmendra Yadav, branch chief of KIST Bank in Janakpur said, "The banks had been apprehensive about opening branches in the Tarai, but improving living standards and stabilized condition convinced them to open branches here in Janakpur." However, few banks have also fled the area in search of safer places due to the increasing insecurity. Entrepreneurs have been motivated to invest due to the increasing number of bank branches, and they say that the opportunities for investment have also increased. Since large numbers of people from this area have gone for foreign employment, Janakpur is a good location for the banks to do remittance business. Source: www.kantipuronline.com
BUSINESS & ECONOMY: NOC to supply Euro III standard fuel Nepal Oil Corporation (NOC) is bringing high octane petrol and diesel of Euro III standard from April 2010, which will give better mileage and increase engine efficiency -- something that will delight automobiles owners and dealers alike. The new fuel will also emit low carbon monoxide and harmful particulates and thus, help control environmental pollution that has soared due to increase in the consumption of low grade fuel. However, the NOC says this upgrading of standard will lead to the increase in the prices of petrol and diesel in the market. “It is difficult to say how dearer the new supply will be. But we estimate the prices of both diesel and petrol to go up by about Rs 3 per liter,� an official at the NOC told myrepublica.com. Mukunda Dhungel, NOC spokesperson, informed that the corporation would start supplying 91-octane petrol throughout the country from April next year, switching from 88-octane petrol that it has been supplying at present. Also it will supply Euro III standard diesel, which will contain low sulphur than existing 0.5 percent.
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The NOC claims upgrading the standard of fuel will relieve vehicle owners and dealers from a host of problems, such as undue wear and tear of fuel pump and engine. Owing to low grade fuel, high-end vehicle owners have been lamenting that they are not being able to enjoy the extent of efficiency the engines promised. Instead, the low grade fuel is also making engine life shorter and causing damages, thereby increasing operational costs. Automobiles dealers also say they were facing problems in introducing latest brands of vehicles with sophisticated engines because of the non-availability of high grade fuel here. Such being the backdrop, the Nepal Automobiles Dealers´ Association (NADA) has been demanding the NOC to bring in higher octane petrol since the past three years. However, the corporation failed to fulfill their demands, saying that it will face difficulties in managing and monitoring the distribution of fuel of different standards. The upgrading of standard of fuel still would not have happened had Indian Oil Corporation (IOC), Nepal´s sole supplier, not announced of switching to high grade fuel regime. Referring to the fresh directives of Indian Bureau of Standard, IOC recently announced that it would raise the whole set of its product line to Euro III standard from existing Euro II. This change, it said, would be accomplished by April 2010. The IOC has announced to start distributing fuel of Euro III standard throughout India, except in the metro cities, from present Euro II standard. In metro cities, it will switch to Euro IV from Euro III standard. As standard of fuel that IOC supplies to Nepal is equivalent to the one it distributes all over India, change in regime is automatically facilitating the much-sought change here. Source: www.myrepublica.com Date: 08/11/2009 NST to soft launch GSM Sim cards Nepal Satellite Telecom (NST) Pvt Ltd is set to soft launch its GSM sim cards. According to the company, NST under Nepal Telecommunication Authority (NTA) will soon provide its voice and data services. NST will start services from September 24. For the operation of telephone service, all the required system, accessories, main core system, base station sub-system and solar system has been completed. The NST telecom service will also start its services in 273 village development committee areas. Mukti Shree Telecom (Nepal), Sewa Telecom Pvt Ltd (Bangladesh), Pakistan
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Mobile Communication (Pakistan) and Air Bell Company (Cyprus) are to be the major investors. “NST will be starting its services in unprofitable areas. That is the reason why it is getting more facilities compared to others,� said Ananda Raj Khanal, director at NTA. Khanal also said NST has Basic Telecommunication Service license under which it has license for limited mobility service only along with landline. According to Khanal, NST got its licence on February 17, 2008 and will have to start its services in the Mid western region, after that in the Far Western Region and Western region and only then bring its service to Kathmandu Valley. The company has a total investment of $25 million and Nabil Bank and NIBL are allowing credit facilitation to the company. It is also planning to bring international gateway, CDMA and landline PSTN services in near future. The company will grant employment to 160 national and international level telecom experts Source: The Himalayan Times Date: 08/11/2009 Gorakhkali resumes operation GORKHA, Aug 10 - Gorakhkali Tyre Industry, which has been closed for the last one month, resumed operations on Monday. The factory was shut down after management and the labour unions representing its workers could not reach a conclusion. The three labour unions which had called a protest programme earlier announced that the factory was back in business. Among the demands set by the unions are increasing wages, providing scholarships to the children of the workers who have topped the SLC and fixing overtime incentives. Coordinator of the labour union Krishna Pokhrel said that the decision was made after a team of investigators led by the factory's general manager Vinod Tiwari gave a clean chit. Source: www.kantipuronline.com FCAN demand compensation KATHMANDU, Aug 10 - The Federation of Contractors' Association of Nepal (FCAN) has demanded that they be compensated for the price hike of construction materials being used in the projects built with Indian grants. The Indian Embassy has been providing funding directly to the small projects, including the construction of school buildings and others, without going through the government channel, according to them. At an interaction organised here on Monday, contractors said they are not getting compensation from the India-aided projects in line with the provision of Public Procurement Act-2006 that ensures their right to claim compensation for the price rise above 10 percent during the construction period.
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According to the FCAN, construction materials related to aluminum products saw price rise of 25 percent and cement witnessed 78 percent during last year. President of FCAN Yagya Dhwoj Karki said they were entitled to receive around Rs. 150 million to Rs. 200 million from the 193 projects aided by India. Source: www.kantipuronline.com
1/3rd workforce under-utilised Around one-third of Nepalis aged above 15 years are in job-market looking for work. About 30 — 38.2 per cent males and 22.8 per cent female — have not utilised their capacity, according to second National Labour Survey released here today. Only 2.1 per cent Nepalis are found to be unemployed, said Bikash Bista, deputy director of Central Bureau of Statistics while releasing Nepal Labour Force Survey2008 report. “It does not seem convincing but it is true,” he said, “Around 97.9 Nepalis are employed with a market participation rate of 83.4 per cent.” The CBS has calculated the rate as per International Labour Organisation (ILO) guidelines, which include a person in employed category if he/she has one hour economic activities in a week. “Our major problem is underutilisation of capacity of labour,” he said. Around 66.8 per cent Nepalis are in fulltime jobs (40 hours per week), 19.5 per cent in partial unemployment whereas 11.6 per cent are under employed, he added. Interestingly, 83.1 per cent of Nepalis are self-employed and 16.9 per cent are in paid jobs. Among 97.9 per cent employed, 73.9 per cent are in agriculture and 26.1 per cent in industrial and service sectors. “We can calculate our unemployment as per underutilisation rate,” the report reads. “It is meant for a country like us,” it adds. The ILO had developed this method in 2008 to calculate labour situation of least developed countries. Employment in Nepal has reduced by 0.3 per cent from 98.2 per cent to 97.9 per cent between 1998-99 and 2008. Underutilisation of labour force varies between rural (26.9 per cent) and urban (49.9 per cent) areas. “The urban areas have more unemployed labour force because people usually come to towns and cities in the search of opportunities,” Bista said. Likewise, male labourers are more underutilised than females with a difference of 15.4 per cent. The bureau had surveyed 15,976 households dividing the country in 800 clusters with equal number of rural and urban households. The base of selection of clusters is Population Census 2001 Source: The Himalayan Times Date: 08/11/2009
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MARKET: Remittance sustains 30pc families KATHMANDU, Aug 10 - Each household which has a family member working abroad receives an average remittance of Rs. 80,462 per year. The Labour Force Survey 2008 carried out by the Central Bureau of Statistics (CBS) revealed that 30 percent of the households receive remittances either from inside or outside the country. Overseas remittances account for 83.2 percent with the rest coming from within the country. Families receiving remittances from inside the country receive an average of Rs. 28,976 per year. According to Nepal Rastra Bank (NRB), the country received remittances amounting to Rs. 204.72 including money sent back by workers and servicemen's pensions during the first 11 months of the last fiscal year. The remittance inflow grew by 51 percent during 11 months of last fiscal year against the increase of 37.3 percent, according to the NRB. The government has also admitted that the role of remittance remained crucial to reduce to people under poverty line from 41 percent to 31 percent now. Above two million people are estimated to have gone to foreign countries to work. The survey found that 29.1 percent of the households had at least one member working abroad. According to Ministry of Labour and Transport Management, as many as 217,164 people went abroad for foreign employment in fiscal year 2008/09. There has been a constant rise in the number of people going abroad for employment over the decade although the number declined by 12.80 percent last year due to global economic recession. Only 27,796 persons had gone for foreign employment in fiscal year 1998/99. Nepal receives the highest remittance from Qatar (21.3 percent of the total) followed by Malaysia (19.2 percent). Saudi Arabia stands third with a share of 14.9 percent, India fourth with 13.4 percent and the United Kingdom fifth with 2.2 percent. Source: www.kantipuronline.com
NEPSE falls 3.32 points KATHMANDU, Aug 10 - The Nepal Stock Exchange (NEPSE) Monday fell by 3.32 points. The sensitive index also declined by 1.01 points. The sub-indices on NEPSE saw a mixed result as two of them witnessed a loss while the other three rose on Monday. The finance sector was the highest gainer on NEPSE as it rose by 2.76 points followed by the hydropower sector which rose by 0.32 point
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and the insurance sector which increased by 0.13 point. Mean-while, the banking sector lost the most on NEPSE by shedding 5.69 points followed by the development bank sector which lost 2.92 points. The share market witnessed a total turnover of Rs. 76.337 million with 134,469 shares being traded. Shares of 59 companies changed hands on NEPSE. Among the 20 commercial banks listed on NEPSE, Laxmi Bank and Nepal Industrial and Cooperative Bank posted the biggest growth with their stock rising by 15 points each while Nabil Bank lost the most on the trading floor by shedding 87 points. Similarly, among the 12 development banks whose shares were traded on NEPSE on Monday, Clean Energy Development Bank witnessed the highest increase of 14 points while Swabhalambhan Bikas Bank dropped 69 points. Among the 18 finance companies on NEPSE, Kaski Finance was the highest gainer with an increase of 30 points in its share price. Reliable Finance lost 31 points. The top five winners on NEPSE were Bageshwori Development Bank with a 9.89 percent rise in its stock price followed by Capital Merchant Banking and Finance, Patan Finance, Shikhar Bittiya Sanstha and Kaski Finance. Similarly, the top five losers on Monday were Swabhalambhan Bikas Bank which fell by 9.32 percent followed by KIST Bank, Reliable Finance, Triveni Bikas Bank and Shree Investment Finance. Source: www.kantipuronline.com
GENERAL:
Much remains to be done to advance Janajati rights: UN expert A top UN expert has highlighted a number of ongoing human rights concerns related to "a history of discrimination" against the rights of indigenous people, also known as Adivasi Janajati, and said "much remains to be done" to advance their rights. In his report released Monday, James Anaya, the UN Special Rapporteur on the situation of human rights and fundamental freedoms of indigenous peoples, assesses the implementation of Nepal's expressed initiatives to secure the rights of the Adivasi Janajati, as reflected in Nepal's ratification of the ILO Indigenous and Tribal Peoples Convention, 1989 (No. 169) and its support of the United Nations Declaration on the Rights of Indigenous Peoples, as well as in a number of policy and law reforms at the domestic level. "The Special Rapporteur is encouraged by the Government's stated commitment to advance the rights of indigenous peoples of Nepal, comprehensively referred to as Adivasi Janajati, but much remains to be done to transform into reality the
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Government's agreement to advancing their rights," said Anaya, who visited Nepal 24 November to 2 December, 2008. Conscious of the challenges involved in Nepal's period of transition to democracy, the Special Rapporteur in his report also offers several recommendations that may serve "to enhance the recognition and protection of the rights of the indigenous peoples in line with the Government's commitments, and expresses his resolve to support these efforts." The report will be presented to the 12th session of the Human Rights Council in September. Source: www.nepalnews.com Date: August 10, 2009
Border health desks sans staff The authorities are yet to wake up to the swine flu threat even as the pandemic has been claiming lives in the southern neighbour. The health desks established in the border areas with the task of carrying out health checks on the incoming people two months ago are either without staff or have already shut. Today morning, many incoming tourists, who were entering via the Kakarbhitta checkpoint on the Indo-Nepal border in the east, were let in without any enquiry or test about their health status, as there was no staff at the government-established health desk. The government has not done the needful to create awareness among locals and to conduct effective tests on the visiting tourists, locals lamented. Besides Kakarbhitta, such desks were set up in Jogbani (Morang), Belhiya (Rupandehi), Rupediya (Banke) and Raxaul (Parsa). “Hundreds of people pass via the checkpoint everyday. However, the government officials are not carrying out their duties efficiently,” said Padam Sapkota, a Kakarbhitta resident. “We fear many locals could have already been infected with the disease.” Gyanuraja Shrestha, chief at Mechi Customs Office, said the Jhapa folks were more vulnerable in comparison to other areas due to frequent movement of people. “As Kakarbhitta customs is the main checkpoint in the east, the concerned body should launch awareness drive against swine flu,” he demanded, adding that the current measures were not sufficient. When asked, Nawaraj Subba, chief, District Public Health Office in Jhapa, said, he would find out as to why the help desk staffers were absent.
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“As we’re in frequent contact with the foreigners, we are also in greater risk to the flu,” Khemraj Khanal, chief, Office of Migration in Kakarbhitta, said. In Jogbani near Biratnagar, the health desk was already removed from the checkpoint four days ago. “We closed it since we were directed to operate the help desk for 45 days,” Dinesh Chapagain, chief, Morang District Public Health Office, said. In Rupandehi too, the health desk in Belhiya is doing nothing except keeping the records of the tourists entering Nepal, locals claimed. Two staffers are working for 12 hours in the health desk beginning 8 am, but, there is no one at night when most of the tourists enter Nepal. “Upon enquiry, the tourists entering Nepal get their names registered mentioning that they have no symptoms of swine flu,” Mukunda Gautam, assistant health worker at the health desk, informed. “The Department of Health had asked us to operate the health desk for 45 days. We haven’t received any directive to continue operation,” Ram Chandra Khanal, chief at Rupandehi District Public Health Office said, adding that they would instead shut down the desk if the government failed to release budget by Wednesday. In Parsa, the health desk established in Raxaual has been ineffective. Two staffers are involved in checking the health of tourists from 9 am to 6 pm without donning masks, locals said. “As hundreds of persons pass via the checkpoint, how can we check their health effectively?” Bidur Upreti, senior health worker in the health desk asked. Ram Bahadur Chand, focal person at Banke District Public Health Office, said the health desk in Nepalgunj was doing its best. “The police administration, however, is not cooperating,” he said. Interestingly, they ask questions about the health status of tourists and others entering Nepal without asking them to disembark from the rickshaws or horse carriages.
Govt awaiting outbreak to stir into action? KATHMANDU: The number of patients of A (H1N1) viral infection — swine flu — has been surging in India but the government of Nepal is still waiting for the outbreak at community level in order to bolster their strategy to tackle the same. Jeetendra Man Shrestha, deputy coordinator of Avian Influenza Control Project, said they were not going to change their current strategy until they record any outbreak in the community. “Since there’s no outbreak of swine flu in the community, we’re applying the same strategy of screening and isolating the patients.” Shrestha, however, said since the disease was a pandemic, it could hardly be stopped from spreading from one country to another despite various mechanisms to contain the same.
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According to him, the strategy would be changed if increasing number of cases were reported. “Till now, we’ve kept the patients in isolation and provided them with free medical services. But, it’s not possible if the number of patients increases.” Twenty persons have tested positive for swine flu in Nepal. In India, six people have died while as many as 800 people have tested positive for the A (H1N1) viral infection. Pranaya Upadhyaya, senior epidemiologist at Epidemiology and Disease Control Division under Ministry of Health and Population, said they had asked hospitals to be alert and prepare for combating the diseases. “Even in the worst case scenario, we possess the capacity to treat 10,000 patients.” The government has established eight check points in the border areas of the country, and one at TIA Source: The Himalayan Times Date: 08/11/2009
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