R&D Economic Research & Business Development
Date: August 14, 2009
Highlights
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Prime Minister Madhav Kumar Nepal, during his August 18-21 visit to India, will once again solicit the southern neighbor´s support to conclude Nepal´s still fragile peace process and to prop up law and order, especially in the Tarai. But there is a certain degree of ambiguity among the Nepal´s political elites and bureaucrats regarding how sincerely does Indian establishment help Nepal on these crucial issues.
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Communist Party of Nepal (Unified Marxist Leninist) has finalized the preliminary draft of new state structure. The party has proposed forming 13 states under the federal set up. The proposed states are Limbuwan, Kirant, Birat-Mechi-Kochila, Mithila, Sunkoshi-Gaurishankar, Tamsaling, Newa, Bhojpura, Tamuwan, Narayani, Magarat, Tharuhat-Lumbini, and KarnaliKhasang are among the federal states proposed by the UML.
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Raghuji Panta, a UML leader and PM Nepal's political advisor, said the 22 parties agreed to field a common candidate in the election of the CC chair to be held Aug 17. "But the name of the candidate was not discussed at the meeting," he said, informing that the parties will pick up the candidate after further discussion.
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Nepal warded off Indian attempts for a commitment on settling the border issue but assured that in no circumstances would it allow its territory to be used for anti-India activity.
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Minister for Information and Communications Shankar Pokharel today said the government had adopted the policy of decentralising the activities of his ministry. Laying the foundation stone for the building of Federation of Nepali Journalists in Bara, Pokharel said, "The welfare advertisements will be given to the print and electronic media equally."
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Nearly three weeks after the country’s apex court rapped him on the knuckles for having taken the oath of office and secrecy in Hindi instead of Nepali, Nepal’s first Vice-President Paramananda Jha on Thursday received a double whammy with the ruling parties, including those in favour of Hindi, agreeing that he would have to honour the court’s verdict.
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Finance Minister Surendra Pandey said Wednesday that the government will not give any tax rebate to former King Gyanendra, who wrote a letter to the Finance Ministry this week, seeking the details of tax to be paid by him.
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China had proposed setting up a high-level mechanism to look after border security and management in February, but Nepal wanted such a mechanism formed at the CDO level in the bordering districts of the two countries. No decision has been taken so far.
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The government is all set to introduce a new insurance policy that will ensure additional insurance facilities for all victims of accidents involving public vehicles. The new policy will cover all categories of victims: third-party people (anyone not travelling in a public vehicle that has met an accident), passengers and transportation workers (drivers and conductors).
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The Ministry of Labor and Transport Management (MoLTM) has urged the Ministry of Foreign Affairs (MoFA) to take diplomatic initiatives to set up a mission of Saudi Arabia in Nepal so as to minimize procedural hassles for Nepali workers to acquire Saudi visas.
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Nepal Rastra Bank (NRB), the central monetary authority of the country, has formed a high-level team to probe into circulation of over 1,000 unauthorized notes of Rs 1000 denomination, which sneaked into the market by bypassing NRB´s standard note releasing procedures.
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Everest Bank has posted a rise of 38 percent in its net profit this year, according to a press release issued by the bank on Wednesday.
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The police on Thursday arrested Santosh Dahal, general manager of the Dhankuta branch of Chemeli Traders’ and Investment Private Limited, on the charge of fleecing customers through the investment company.
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Eighteen Nepali workers have been languishing jobless in Qatar’s capital city of Doha for 45 days. According to the victims, a Qatar-based Nepali agent, Aziz Nadaf, had brought them for a construction company eight months ago without certifying their visas at the Doha-based Nepal Embassy.
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Ailing Nepal Airlines Corporation plans to add new aircraft to its domestic fleet soon. “NAC is planning to add two new aircraft with a capacity of 50 to 70 seats on trunk routes like Pokhara-Kathmandu,” said Sugat Ratna Kansakar, NAC executive chairman.
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South Korea under Employment Permit System (EPS) has hired a little more than half Nepali workers than the targetted number.“South Korea has hired around 2,911 Nepali blue-collar jobseekers - 58.22 per cent of the target since it started last July, the EPS data shows.
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Hotel Association Nepal (HAN) has urged to renew the contracts of the hotels — that were closed after the government’s decision — in Chitwan National Park (CNP).
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The World Food Programme (WFP) has said that the swelled vegetable and fruit prices affect the urban poor severely forcing them to limit their intake, ultimately leading to micronutrient deficiencies.
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If plans go normally, residents in Kathmandu will see flyovers in the city within the next few years, due to the increasing traffic congestion in the capital.
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POLITICS: Nepali elites confused about Indian intentions, cooperation KATHMANDU, Aug 14: Prime Minister Madhav Kumar Nepal, during his August 18-21 visit to India, will once again solicit the southern neighbor´s support to conclude Nepal´s still fragile peace process and to prop up law and order, especially in the Tarai. But there is a certain degree of ambiguity among the Nepal´s political elites and bureaucrats regarding how sincerely does Indian establishment help Nepal on these crucial issues. "Sometimes it feels like Indian authorities are cooperating but most of the time we have a feeling that they want to keep tabs on the peace process and on the armed outfits in the Tarai so that they not only have a say on the process but also control over the end result," said a senior politician, who has experience of engagements with India on several occasions in the past. There is hardly any agreement among the Nepali elite on India´s role vis-a-vis Nepal and there are at least two dominant schools of thought on this. The first school believes that it´s in India´s best interest that Nepal remains a stable and functioning democracy and India will do all it takes to ensure the stability and also supports in its endeavor for prosperity. The second school of thought dismisses any such benign intentions. "India understands the realpolitik very well and pursues it dispassionately. Based on my experience at home administration for over two decades I have come to a conclusion that India always tries to keep Nepali political forces divided to serve its own interest." If you look at Nepal-India relations over the past six decades since India overthrew the British colonial yoke and Nepal also got rid of 104-year long Rana oligarchy, there are ample examples to make case for either of these schools of thought. However, as the current government faces increasing challenges in maintaining law and order in the Tarai and to curb activities of militant and criminal groups operating across the border, there are growing doubts about India´s sincerity. What has made the leaders and bureaucrats more suspicious lately is the intelligence report that Indian officials have held several meetings with armed groups operating in the Tarai and encouraged them to form a collective front to fight for the Madhesi cause. According to a highly-placed source, one of such meetings was held on July 1-2 at Dank Bangala in Frazer Road, Patna, where senior officials from Indian intelligence branches goaded the chiefs of three major armed outfits working in the Tarai --- Akhil Tarai Mukti Morcha (ATMM), Janatantrik Tarai Mukti Morcha-Jwala (JTMM-J) and
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Samyukta Janatantrik Tarai Mukti Morcha (SJTMM). The meeting was attended by, among others, Jai Krishna Goit of ATMM, Nagendra Paswan alias Jwala Singh of JTMM-J and Prahlad Giri alias Pawan of SJTMM. Similarly, intelligence report says Deputy Inspector General (DIG)-level intelligence official, O P Sharma, and another senior officer, with a surname Mathur, also attended the meeting held at the initiative of Anil Sinha, who is the president of Seema Jagaran Manch. Mathur is known to have served at the Indian Consul General´s Office in Birgunj until a few years ago. The intelligence report also said ATMM Chief Jai Krishna Goit at the meeting vented anger for not extending them enough support and complained that his activities were curbed during CA elections in Nepal. "You caused split in my party when I spoke against Constituent Assembly elections in Nepal and confined my activities far from Nepal-India border," the report further quotes Goit as saying. The report says the Indian officials present at the meeting urged all the armed groups to join hands and form a collective front. "It´s only then you can make a difference and we can also provide you a meaningful support," the report quotes an Indian official as saying. However, Prime Minister Nepal is unlikely to share this piece of information with his Indian counterpart during his upcoming visit to India. "See, these intelligence reports are not always reliable and it may not be appropriate to share those in such high level when we are embarking on a goodwill visit," said a top aide to the prime minister. If, on the one hand, the government has such a piece of intelligence, on the other hand, it also has more recent cases where Indian security agencies have nabbed and handed over some individuals linked to armed groups operating in the Tarai. Local authorities in Bihar recently handed over Ram Narayan alias Manager Mahato, the chairman of Madhes Rastriya Jantantrik Party (Revolutionary) to police in Siraha. Mahato was allegedly shot dead by Nepal police after the handover. Such inconsistent -- and sometimes contradictory -- cases of Indian actions continue to leave Nepali establishment confused about India´s actual intentions and its cooperation in curbing militant activities in the Tarai.
Source: www.myrepublica.com
UML floats 13 states Communist Party of Nepal (Unified Marxist Leninist) has finalized the preliminary draft of new state structure. The party has proposed forming 13 states under the federal set up.
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The proposed states are Limbuwan, Kirant, Birat-Mechi-Kochila, Mithila, SunkoshiGaurishankar, Tamsaling, Newa, Bhojpura, Tamuwan, Narayani, Magarat, TharuhatLumbini, and Karnali-Khasang are among the federal states proposed by the UML. The party has suggested taking factors such as settlement pattern, cultural concurrence, administrative accessibility, economic and social interrelation, availability of resources, historic tie and pattern of the use of languages into consideration while delineating states. The UML has concluded that economic viability should be given special priority while determining federal state. Among others, the UML has taken ethnic, linguistic, cultural, geographical and historical continuity as basis of ensuring identity of people from various communities. “There will be a total 13 states. Four of them are multilingual, multi-ethnic and multicultural states and two other linguistic states will be compulsory,� said UML Chairman Jhalanath Khanal. Khanal said special arrangement will be made as federal states cannot be delineated in the name of each ethnic group or caste and linguistic and cultural group in the country. The UML has proposed a total seven states in the names of ethnic or caste groups. They include Limbuwan, Kirant, Tamsaling, Tamuwan, Newa, Tharuhat-Lumbini and Magarat states. Birat-Kochila-Mechi, Gaurishankar-Sunkoshi, Narayani and KarnaliKhasang are proposed as multicultural state. Mithila and Bhojpura are two states named behind language.
Source: www.myreplica.com
22 parties to field common candidate for CC chair; agree to ask VP Jha to take oath in Nepali The 22 political parties in the ruling coalition have reached an understanding to field a common candidate for the chairperson of the Constitutional Committee (CC), the main committee in the Constituent Assembly. The 22 parties reached the agreement during a meeting held at Prime Minister Madhav Kumar Nepal's official residence, Baluwatar, Wednesday. Raghuji Panta, a UML leader and PM Nepal's political advisor, said the 22 parties agreed to field a common candidate in the election of the CC chair to be held Aug 17. "But the name of the candidate was not discussed at the meeting," he said, informing that the parties will pick up the candidate after further discussion.
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However, smaller parties proposed CPN (Marxist Leninist) chairman Chandra Prakash Mainali as the 'common candidate'. Unified CPN (Maoist) and Nepali Congress have staked claim for the CC chair. The Maoist party has already named vice-chairman Dr Baburam Bhattarai as its candidate while NC has likely to field Nilambar Acharya for the post. Meanwhile, in today's meeting, leaders of the 22 parties agreed to ask Vice President Parmananada Jha to take oath in Nepali, as ordered by the Supreme Court. Deputy Prime Minister and chairman of Madhesi Janadhikar Forum (Loktantrik), Bajay Kumar Gachchhadar said that the parties concluded that the court's order on the VP's oath should be implemented. He also informed that the government would bring a proposal to the parliament for amendment in the Interim Constitution to do away with the current provision on oath so that disputes do not arise in future. Source: www.nepalnews.com Date: August 13, 2009 Nepal seeks Indian aid to modernize its border forces NEW DELHI: Nepal warded off Indian attempts for a commitment on settling the border issue but assured that in no circumstances would it allow its territory to be used for anti-India activity. In talks with several Union Cabinet Ministers, visiting Nepalese Foreign Minister Sujata Koirala was informed of India’s intentions to start work on the coastal road which will connect 22 districts of the underdeveloped Terai region and the construction of a power transmission line to Muzzaffarpur. The two sides also exchanged notes on the proposed trade treaty as well as the peace process in Nepal with India pointing out that any unrest impacted the security situation in both countries. The Nepalese assurance on not allowing its territory to be used against anti-India forces came following concerns raised over the large scale influx of fake currency in the country. Nepal has sought Indian assistance to modernize its border forces with communication and surveillance equipment to nab drug runners and counterfeit currency traffickers. It also suggested that India could take more active interest in training its police personnel. Apart from the coastal road and the transmission line, the two sides also exchanged notes on the construction of the Tanakpur-Mahendranagar Road which would be an off-shoot of the multi-purpose Pancheswor project. Nepal also raised the issue of hiking the scholarship for its students and wanted its students in select colleges in India to be allowed to pay for their fees in Indian rupees instead of dollars. Source: http://www.hindu.com 6
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Ministry set to decentralization BARA: Minister for Information and Communications Shankar Pokharel today said the government had adopted the policy of decentralising the activities of his ministry. Laying the foundation stone for the building of Federation of Nepali Journalists in Bara, Pokharel said, "The welfare advertisements will be given to the print and electronic media equally." Stating that the government believed in free press, the minister said press freedom was not the measurement of good governance. He said the government was committed to developing journalism as a respected and prestigious profession. He also said the government had paid special attention to maintaining law and order. He called the special security strategy a bold step to curb violence in the country. Stating that the the army row was initiated by the Maoists, the minister said the President had safeguarded the constitution by correcting the mistakes of the UCPNMaoist. Speaking on the occasion, FNJ president Dharmendra Jha demanded an end to impunity by taking action against those involved in the killing of journalists Birendra Sah and Uma Singh. He blamed the administration of protecting the guilty. Blaming policymakers of being indifferent to the press, Jha said the security of journalists should be guaranteed. The minister gave away Birendra Shah Memorial Journalism Award to journalist Binod Pyakurel on the occasion. Established by FNJ Bara in memory of Sah, the award carries a purse of Rs 5,001. The minister also handed over Rs 34,000, jointly collected by the FNJ and Press Chautari , to Umarawati Devi, late Sah’s wife. Source: www.thehimalayantimes.com Date: 2009-08-14
Nepal vice-president loses Hindi war KATHMANDU: Nearly three weeks after the country’s apex court rapped him on the knuckles for having taken the oath of office and secrecy in Hindi instead of Nepali, Nepal’s first Vice-President Paramananda Jha on Thursday received a double whammy with the ruling parties, including those in favour of Hindi, agreeing that he would have to honour the court’s verdict. Former law minister Raghuji Pant, who is also the political advisor of Prime Minister Madhav Kumar Nepal, told the media that the premier had called a meeting of the 22 parties in the ruling alliance to decide the contentious language issue that has once again created a rift between Nepal’s hill and Terai communities.
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"The parties decided that the Supreme Court’s verdict would have to be honoured," Pant said. A dogged legal battle had started after Jha was sworn in last year with advocate Bal Krishna Neupane challenging it in court. On July 24, the Supreme Court bench, that included chief justice Min Bahadur Rayamajhi himself, ruled that the Hindi oath was unconstitutional and ordered Jha to be sworn in again in Nepali. Jha, a former Supreme Court judge himself, however flayed the verdict, calling it biased and accusing the chief justice of harboring personal animosity towards him. The accusations resulted in two more persons slapping a second suit and on Wednesday, the court asked the government to explain within a week what it had done so far to arrange a second oath-taking for the vice-president. "The vice-president will have to take the oath again," lawmaker and general secretary of the Communist Party of Nepal-Marxist Leninist C P Mainali, who had attended Thursday's meeting, told TNN. "However, the parties have also decided that if the constitution needs to be more liberal about languages, such changes will be made on the basis of consensus." It points towards yet another change in the interim constitution. However, before that happens, Jha will have to take the oath again. It remains to be seen now if the vicepresident will bite the bullet. After the Supreme Court verdict last month, he had said he would rather quit than be forced to take the oath in Nepali. However, with the Terai parties, who had supported his candidature and the use of Hindi as the official language deciding not to lock horns with the court, he is likely to toe the line. Mainali said the Supreme Court had made one ruling in favour of the embattled vice-president. "The court refused to sack him till the dispute is resolved," he said. The final court hearing on the issue has been scheduled for Aug 23. Source: http://timesofindia.indiatimes.com
No tax rebate for ex-King: Finance Minister Finance Minister Surendra Pandey said Wednesday that the government will not give any tax rebate to former King Gyanendra, who wrote a letter to the Finance Ministry this week, seeking the details of tax to be paid by him. Speaking to reporters at the Finance Ministry, Pandey informed that the ex-King had inquired about his tax liabilities and the procedures of payment. Pandey said the tax officials could be deployed to settle the ex-King's tax liabilities "but no rebate will be given." He, however, did not reveal if the former King had sought any rebate.
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The ex-King is to liable to pay the income tax, electricity and water tariff and 'rent tax' of Nirmal Niwas, his private residence, and two other residences of his relatives, Shobha Griha and Jeevan Kunj. Earlier, the King and his family were exempted of all kinds of tax. Source: www.nepalnews.com Date: August 12, 2009
POLICY:
Border talks with China on cards KATHMANDU, Aug 13 - Officials from Nepal and China will hold border talks in Lhasa on Saturday and Sunday. The talks will deal with the entire gamut of problems. Kishor Lama, Additional Inspector General of Armed Police Force, will lead the 21member Nepali delegation comprising officials of Nepal Police, National Investigation Department, Home Ministry and Foreign Ministry officials and CDOs of adjoining border districts. China had proposed setting up a high-level mechanism to look after border security and management in February, but Nepal wanted such a mechanism formed at the CDO level in the bordering districts of the two countries. No decision has been taken so far. "The Chinese intention at that time (February) was to form such a mechanism at the ministerial or secretarial level, similar to the arrangement between Nepal and India. But, we are considering setting up the mechanism at the CDO level at first and later upgrading it to the secretary level," said a Home Ministry official. Responding to the February visit of Chinese military officials, the upcoming meeting will focus on a dozen issues. Nepal will raise the issue of illegal immigrants from Tibet--who mostly enter Nepal from the Tatopani entry point--which is posing security threat to both sides. Cross-border crime is also a priority agenda, said an official. The smuggling of arms from China to Nepal is another prime concern for Nepal. For the first time, the issue of fake currency will also be discussed, the official said. Similarly, promotion of bilateral trade, control of human trafficking, and easy access to essential commodities for the northern belt of Nepal via the Chinese route will figure in the talks. According to officials, China may again raise the issue of Extradition Treaty with Nepal, which it had raised last February. The meeting is the seventh in the series of Third Joint Committee talks that will digitize the existing boundary with Global Positioning System (GPS) technology to survey markers and the Geographical Information System (GIS) to draft a new boundary agreement.
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Nepal and China had signed the first protocol of boundary maps in 1962 and the second protocol in 1978. Survey officials from both countries had prepared 57 sheets of digital maps of the 1,414 km-long border with 98 boundary pillars and 79 markers. Nepal and China have demarcated the boundary maps except for Kalapani, which is a juncture of Nepal, China and India. There are some boundary disputes in Kimathanka of Solukhumbu district but local officials hadn't appraised the centre of the problem due to lack of proper boundary maps. Although both countries had agreed to review the boundary maps every 10 years, they have not done so after 1988. Source: www.kantipuronline.com
Insurance for public-vehicle hit KATHMANDU, Aug 13 - The government is all set to introduce a new insurance policy that will ensure additional insurance facilities for all victims of accidents involving public vehicles. The new policy will cover all categories of victims: thirdparty people (anyone not travelling in a public vehicle that has met an accident), passengers and transportation workers (drivers and conductors). A task force under the coordination of Sharad Chandra Poudel, director general of Department of Transportation Management, has recommended increasing the amounts of insurance coverage from the current rates. The task force was created after the government included the insurance issue in this year's budget. The new provisions could come into effect as early as next week if the Cabinet endorses the recommendation. The most important change in the insurance policy has to do with victims who are disabled or injured in public-vehicle accidents. Earlier the insurance policy covered only deaths. According to the new policy, the compensation handed out will depend on the severity of the injuries sustained by the victims, said Dinesh Bhandari, president of National Federation of Nepalese Transport Entrepreneurs. Furthermore, in the new policy, the amount that can be claimed for deaths has also increased. The new policy has taken into consideration not only victims, but owners of public vehicles as well. The insurance company will cover more victims per accident: the optimum limit covering victims has been raised to Rs. 5 million (every victim will be paid Rs. 500,00), while the current optimum limit is Rs. 600,000. “That means third party insurance will cover the death of up to 10 persons,� said Sharad Chandra Poudel. Poudel said the government is also thinking of coming up with a similar policy for private vehicles involved in accidents. Public Transport Insurance Coverage 10
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Accidental death
Existing
Proposed
Third party Passenger Transport worker
Rs. 300,000 Rs. 50,000 Rs. 150,000
Rs. 500,000 Rs. 100,000 Rs. 500,000
Injuries
Treatment
Full disability
Third Party Passenger Transport Worker
Rs. 200,000 Rs. 100,000 Rs. 100,000
Rs. 500,000 Rs.100, 000 Rs. 500,000
Source: www.kantipuronline.com
Labor ministry bats for Saudi mission in Nepal KATHMANDU, Aug 14: The Ministry of Labor and Transport Management (MoLTM) has urged the Ministry of Foreign Affairs (MoFA) to take diplomatic initiatives to set up a mission of Saudi Arabia in Nepal so as to minimize procedural hassles for Nepali workers to acquire Saudi visas. “As Nepali workers have to waste a lot of money to get visas to Saudi Arabia through its missions in Dhaka and Mumbai, we have written to the MoFA urging it to take initiatives to set up a mission here,” Babu Ram Acharya, secretary at the MoLTM told myrepublica.com. Foreign Employment agents said that the setting up of a Saudi mission here would spare Nepali workers of the existing problems. They have long been demanding establishment of an embassy of Saudi Arabia, the second most popular destination for Nepali workers after Qatar, in Nepal. “We have to spend at least Rs 100,000 for trips to Bangladesh and Mumbai to get Saudi visas. The MoLTM initiative is appreciable. With the opening of Saudi mission in Nepal, we will be spared the unnecessary financial burden and waste of time,” said Som Bataju, vice president of Nepal Association of Foreign Employment Agencies. Saudi Arabia, home to around 500,000 Nepali workers, has received more than 277,925 Nepali workers since the last one and a half decade. As many as 48,749 Nepalis, mostly blue-collar workers, had flown to the oil-rich desert nation during the fiscal year 2008/09. Source: www.myrepublica.com
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Govt to study feasibility of flyovers If plans go normally, residents in Kathmandu will see flyovers in the city within the next few years, due to the increasing traffic congestion in the capital. Nagarik daily quoted officials at the Department of Roads as saying process has begun to find consultants for feasibility studies of flyovers in intersections at Kalanki, Satdobato, Koteshor, Chabhil, Maharajgunj, Balaju and Baneshor. The government in this year’s budget had allocated Rs 410 million for feasibility studies of the flyover bridges to counter the traffic woes. The official said suggestions from the studies would be forwarded to Ministry of Physical Planning and Works for execution of the plan. Source: www.nepalnews.com Date: August 13, 2009
BANKING: NRB probes circulation of unauthorized notes KATHMANDU, Aug 14: Nepal Rastra Bank (NRB), the central monetary authority of the country, has formed a high-level team to probe into circulation of over 1,000 unauthorized notes of Rs 1000 denomination, which sneaked into the market by bypassing NRB´s standard note releasing procedures. •
100,8 pieces of unauthorized notes of Rs 1000 denomination went into circulation
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109 pieces have been recovered
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Panel asked to submit report by August 18
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Volume is nominal, but the incident is serious, say officials
An official of the central bank informed myrepublica.com that the team led by Bhola Man Shrestha, executive director of the NRB, has been asked to furnish its report by August 18. "Though the volume of the unauthorized notes that went into circulation is not very big, the incident itself is very serious and that is why it needs to be dealt accordingly," said a high-ranking NRB official. According to a preliminary estimate, a total of 1,008 pieces of such notes went to market and 109 have already been recovered. "Initially it was thought that only eight to ten pieces of such notes sneaked into the market and the Indonesian note printing company Perum Peruri tried to recover such notes by rewarding Rs 28,000 apiece from those who had got the notes," said the official. However, the plan was abandoned after knowing that the number of such notes was over 1,000.
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The probe team will try to find out how the notes that were received as samples and should have been destroyed immediately after finalizing their designs went into circulation, said the official. The official said the Indonesian company has also assured the NRB of assistance in investigation. "A delegation from the company was in capital a couple of days ago and it has also initiated its own investigation into the incident," said the official. According to preliminary investigation, printing of 1000-rupee notes was ordered before the suspension of present governor Bijaya Nath Bhattarai and at least six set of samples were sent by the press for final approval. However, the whole note printing process was put off after Bhattarai was suspended in June 2007 on corruption charges. In order to avoid a possible scarcity of notes in the absence of governor to sign the notes, the government then authorized the central bank to issue notes carrying signature of then acting governor Krishna Bahadur Manandhar. In this connection, the central bank issued a public notice in April 2008 informing the public that the bank would issue 1000-rupee notes signed by Manandhar with prefixes ranging from Kha 21, 000001 to Kha 53, 999999. The bank issued another notice in February 2009 informing the public that the prefixes of the notes with Mandhar´s signature were extended to 54 and 55. However, the latest saga erupted two weeks ago when a number of 1000-rupee notes with prefix of 55 were traced in the market, but with Bhattarai´s signature. Source: www.myrepublica.com
EBL posts rise in net profit Everest Bank has posted a rise of 38 percent in its net profit this year, according to a press release issued by the bank on Wednesday. The bank having the largest network among private sector commercial banks in the country posted a net profit of Rs 624 million. Last year the bank's net profit was Rs 451.2 million. The operating profit of the bank has also reached Rs 1.66 billion this year, a significant rise from Rs 818.2 million in the last FY 2064/65. The Bank said that its Asset Quality has improved further. The Non-Performing Asset has further gone down to 0.48% from 0.68% in the previous year. The Bank now has 34 branches. The 35th branch is scheduled to be opened at Thamel in Kathmandu within a month, the bank informed. Source: www.nepalnews.com Date: August 12, 2009
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Finance company officials held DHANKUTA: The police on Thursday arrested Santosh Dahal, general manager of the Dhankuta branch of Chemeli Traders’ and Investment Private Limited, on the charge of fleecing customers through the investment company. Dahal who had been absconding for the past three months, was held with the help of CTIPL staffers. The proprietors and other top officials of the finance company have been accused of ripping off customers as they have run away with the money invested by locals in the company. Chairman of the company, Bharat Shah, has also been detained in Itahari Area Police Office. “We’re interrogating the duo and have been investigating into the case,” ASI Harka Bahadur Rai, at Dhankuta District Police Office, said. CTIPL Dhankuta branch chief Omraj Lama is still at large. Similarly, CTIPL proprietors Dhruba Shankar Ghimire, Chet Bahadur Karki, Nageshwor Mahato and Sapukar Ray are absconding, the police said. The police seized computers, printers, bills and other documents from the CTIPL Dhankuta office. The company had collected Rs 35 lakh from some 300 individuals in Dhankuta and Hille bazaar. “Rs 15,30,000 has been provided as loan to customers. However, there is no record of the remaining fund,” Sudha Lwagun, CTIPL staffer said. Source: www.thehimalayantimes.com Date: 2009-08-14
BUSINESS & ECONOMY: 18 workers left in lurch DOHA, Aug 13 - Eighteen Nepali workers have been languishing jobless in Qatar’s capital city of Doha for 45 days. According to the victims, a Qatar-based Nepali agent, Aziz Nadaf, had brought them for a construction company eight months ago without certifying their visas at the Doha-based Nepal Embassy. As the employer did not pay them six months’ salary, the workers quit. On Wednesday, the embassy provided the workers 100 Riyal to buy food. “Had the embassy not helped us, we’d have starved to death,” says 25-year-old Santosh Kumar Yadav of Dhaunsha district. Yadav says he had paid Rs. 1, 00,000 to Nadaf of Sugammadhukarahi in Dhanusha for a job with a monthly salary of 700 Riyal, which is about Rs.14, 000. “We don’t know where Nadaf is,” says Yadav. According to Ambassador Suryanath Mishra, the embassy has initiated legal proceedings against the agent and the employer.
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On July 16, the Nepali mission had summoned Nadaf and the latter had committed in writing that he would provide due salary to the workers, make arrangements for their return to Nepal and quit his profession by July 30. Source: www.kantipuronline.com
NAC to add to its domestic fleet Ailing Nepal Airlines Corporation plans to add new aircraft to its domestic fleet soon. “NAC is planning to add two new aircraft with a capacity of 50 to 70 seats on trunk routes like Pokhara-Kathmandu,” Sugat Ratna Kansakar, NAC executive chairman, told The Himalayan Times today. “A technical committee will be formed to prepare specifications of the aircraft,” he said, adding that the board will evaluate the report before purchasing new aircraft for the domestic fleet. “Some of the local banks are keen to finance the aircraft,” he added. If economically feasible, NAC is also eyeing 10 to 20-seater aircraft to operate in small airports. “Smaller aircraft will suit small domestic airports. We can increase the frequency of flights,” Kansakar added. NAC is operating only four of the seven DHC-6-Twin Otter aircraft with 19-seat capacity on domestic routes. “We’ll make that five in a month,” Kansakar said, adding that the decision on operating two others will be taken soon. “The board will decide whether to sell the two or operate them,” added the executive chairman, who got the executive powers after Supreme Court decided yesterday not to issue a stay order restraining him from exercising executive powers.Managing Director Capt Kul Bahadur has moved the SC seeking a stay order against the appointment of Kansakar as executive chairman. The government appointed Kansakar as executive chairman on July 26. When Kansakar was NAC Managing Director in January, he had planned to add six aircraft to NAC’s international fleet. If everything goes as planned, NAC will have a new aircraft by the first half of 2010 for the international route. In next five years, NAC will have a fleet of six new aircraft. NAC is operating two B-757 Boeing 757-200 aircraft — Karnali and Gandaki that have 190-seat capacity each — on the international routes. Erstwhile Royal Nepal Airlines Corporation had bought two Boeing 757: Karnali on lease in 1987 and Gandaki in 1988. The government-owned airlines company may be able to add one narrow-body aircraft soon and a wide-body aircraft by October 2010. After people’s movement in 1990, successive governments of the Nepali Congress and the CPN-UML had leased the aircraft from Lauda Airlines and China South Western Airlines, with a fair share
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of controversy.NAC incurred an operating loss of around Rs 50 million in the last fiscal year due to unavailability of one of the aircraft and rising fuel prices. The new aircraft can give NAC a new lease of life. Source: www.thehimalayantimes.com Date: 2009-08-14 South Korea hires lesser than promised South Korea under Employment Permit System (EPS) has hired a little more than half Nepali workers than the targetted number. “South Korea has hired around 2,911 Nepali blue-collar jobseekers — 58.22 per cent of the target — since it started last July, the EPS data shows.The EPS Nepal unit has targeted to send at least 5,000 Nepalis under 2008 quota. The EPS process started on July 23, 2007 with a bilateral agreement between South Korea and Nepal. But, the process started only after last July when the result of Korean Language Test (KLT) exam came out. Around 37,000 Nepali youths had appeared for KLT but only 6,768 passed it. Among them, 6,556 were listed in EPS South Korea’s roster. In a year since last July, 3,453 Nepalis received labour contract (LC) and 3,088 received certificate of confirmation of visa issuance (CCVI). The EPS was hit hard by global economic crisis in South Korea and hiring process has also slowed down this year. South Korea has been hiring Nepali migrant workers in three sectors — manufacturing, agriculture and fisheries. Moreover, manufacturing sector of EPS was affected in June and closed for 50 days from June 10 to July 31. South Korea is a lucrative destination for Nepali migrant workers and EPS workers are getting $970 to $1,000 monthly salaries that is five times than in the Gulf countries and Malaysia. Nepalis working in South Korea under EPS has been contributing Rs 2 billion in remittance annually. Around 1,91,592 foreign nationals are working in South Korea under EPS programme. Vietnam tops in the list sending 50,869 workers followed by Thailand with 31,170; the Philippines with 30,328 and Indonesia with 23,574 labourers. Source: www.thehimalayantimes.com Date: 2009-08-13 Plea to renew hotels contract Hotel Association Nepal (HAN) has urged to renew the contracts of the hotels — that were closed after the government’s decision — in Chitwan National Park (CNP).
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“The role of these hotels has been important for developing Nepal as a tourist destination,” Prash-iddha Bahadur Pandey, president of HAN said adding that it was unfair to close them without notice. They were closed down since July 16 after the contract span expired. The president of Federation of Nepalese Chamber of Commerce and Industry (FNCCI) Kush Kumar Joshi warned that the foreign investment would be hurt, if the government continues to violate the clauses mentioned in the contract. “The government should provide adequate time for the hotels to develop their infrastructure to meet the criterion as prescribed by the government,” he said adding that the members of HAN were denied the tender. He also said that the government should award contract after tender. The contract of seven hotels should be renewed according to their existing contracts,” Joshi added. The hotels in CNP were generating the revenue worth Rs 300 million and contributing in the employment generation to about 3,000 people. Ram Kaji Koney, president of NATTA said that the government decision has directly hit the 3,000 employees and locals of Chitwan. “The hotel entrepreneurs have been facing great difficulties due to the inability of the hotel entrepreneurs to address the frequent enquiries of the tourists about booking confirmation,” president of NATO Basanta Mishra said. “If the government do not address demands of hotel entrepreneurs within a week, the entire season would be wasted,” he said adding that it will affect the tourism sector in a long-term. “Environmental and wildlife conservation have also been top priority of these hotel entrepreneurs,” Pandey said adding that the government should implement strict provisions if the hotel entrepreneurs fail in conservation programmes. “If the closed hotels are not opened soon, Chitwan might be wipped out of the tourism destination map,” the entrepreneurs warned. Source: www.thehimalayantimes.com Date: 2009-08-13 Veg price rise hits urban poor hard: WFP KATHMANDU, Aug 13 - The World Food Programme (WFP) has said that the swelled vegetable and fruit prices affect the urban poor severely forcing them to limit their intake, ultimately leading to micronutrient deficiencies. The WPF has expressed concern as prices of vegetables like cauliflower and cabbage have soared by as much as 54 to 147 percent and fruits like banana and apple have gone up by 14 to 42 percent in the past three months. "It is normal to have fruit and vegetable price fluctuations depending on the harvest period," the WFP said in its monthly market monitoring report for July. "However, recent increases in prices of these commodities have been far above normal seasonal fluctuation."
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The price of cabbage is five times higher than a year ago, and the average potato price is more than double from last year's price in July, the finding states. The average price of red potato stands at Rs. 32 per kg nationally. Prices of vegetables and fruits swelled due to reduced supply, according to the report. The average daily supply of fruits, vegetables and spices has decreased by 50 percent compared to last year, down by around 300 tons a day at the Kalimati Fruits and Vegetable Market, Kathmandu, the report said. The report said that a winter drought followed by strikes and bandas resulted in reduced supplies of vegetables and fruits which ultimately caused prices to rise Source: www.kantipuronline.com
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