R&D Economic Research & Business Development
Date: August 18, 2009
Highlights
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When Madhav Kumar Nepal arrives here on Tuesday, he will be the third Nepalese Prime Minister in as many years to visit New Delhi. In contrast, Manmohan Singh in his six years as Prime Minister has not visited Kathmandu once. (The Hindu)
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The controversial Pancheshwor Hydropower Project will not be Nepal’s principal agenda during Prime Minister Madhav Kumar Nepal’s official India visit, spokesperson for the government Shanker Pokharel has informed.
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Though the Cabinet today approved a 38-member government team for the visit, the figure will cross 63 since the delegation includes journalists and industrialists as well. Part of the contingent are: -
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Foreign Minister Sujata Koirala, Minister for Tourism and Civil Aviation Sarat Singh Bhandari, Minister for Energy Dr Prakash Sharan Mahat, Finance Minister Surendra Pandey, Minister for Commerce and Supplies Rajendra Mahato, Minister for Industries Mahendra Prasad Yadav, PM’s wife Gayatri, and Vice-chairman of the National Planning Commission Dr Yubraj Khatiwada. CA Chairman Subas Nembang held a meeting with the chief whips of the three main political parties -- Post Bahadur Bogati of Unified CPN (Maoist), Laxman Ghimire of Nepali Congress and Bhim Acharya of CPN (Unified Marxist-Leninist) -- on Monday to discuss the matter.
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As there are only 20 days for the Constituent Assembly (CA) to complete discussions on the concept papers and preliminary drafts prepared by its committees, the CA will be without business from Monday. Six CA committees, including the Constitutional Committee are yet to finalise their concept papers.
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Following a long-standing row over oath-taking by Vice President Paramananda Jha, a cabinet meeting on Monday requested Jha to take his oath of office and secrecy as vice president in the Nepali language as ordered by the Supreme Court.
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The Nepal Communist Party- United Marxist Leninists senior leader Mr. K. P. Sharma Oli has appealed his party cadres to expose the Unified Maoists’ Party’s erratic activities to the public. He also said that no further physical attack on the UML cadres would be tolerated by the UML party leadership.
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Deeply hurt by the split in the party which he solely founded, Mr. Upendra Yadav, the president of the namesake Madhesi Janaadhikar Forum –Yadav faction, has however, surprisingly threatened that a Madhesi Revolt awaited the nation sooner than later.
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The 2009 Human Development Report on Nepal jointly prepared by the National Planning Commission (NPC) and the United Nations Development Programme (UNDP) was launched amidst a function in Kathmandu, Monday. According to the report, three years after the decade long conflict ended, the underlying causes of the conflict have not been resolved, nor have most of the consequences of the conflict.
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Tourism and hotel entrepreneurs in eastern Nepal have appealed to the government to raise the issue of opening an immigration office at the Jogbani border during Prime Minister Nepal's visit to India.
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Nepal Rastra Bank governor Bijaya Nath Bhattarai has said that bank deposits will be insured by the Deposit and Credit Guarantee Corporation (DCGC) to protect depositors, however, its capability is doubtful because of its limited capital base and untrained lower-level employees.
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Nepal Rastra Bank (NRB) board on Monday decided to provide US dollars for importing materials for hydropower projects up to seven megawatt from India. Earlier, only the hydro projects up to five megawatts were allowed to import materials in dollar from India.
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Nepal Rastra Bank has appointed Dr. Puspa Raj Rajkarnikar as coordinator of the management committee of Nepal Bank Limited with effect from Aug. 12.
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After Kathmandu, Kavre has the highest number of 36 banks and financial institutions. Banks and financial institutions have to open one branch outside Kathmandu for every branch they open in the capital as per the central bank's regulations. And Kavre has become an ideal location for commercial banks.
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After a spell of profit, Nepal Oil Corporation (NOC) - the state oil monopoly has again plunged into the red. As per the new rates, which the NOC received today from its sole supplier, the Indian Oil Corporation (IOC), the new buying rate for diesel at Raxaul Depot will be Rs 43.98 per litre, up from Rs 41.02. While, petrol will be at Rs 43.18 per litre, up from Rs 39.16.
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The second meeting of the Main Organising Committee of Nepal Tourism Year (NTY) 2011 national campaign was held on August 16 under the chairmanship of Tourism Minister and chairman of Main Organizing Committee Sarat Singh Bhandari.
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Nepal Telecom (NT) will soon sign an agreement with Saudi Telecom of Saudi Arabia, which is expected to give respite to Nepalis paying huge amounts while making calls to and from one of the largest Nepali workers absorbing country.
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After a four-month ban on Nepali migrant workers entering Israel, the Nepal government has finally decided to settle the problem. The Ministry of Labour and Transport Management (MoLTM) will send a high-level team to Israel led by Labour Minister Mohamed Aftab Alam on Wednesday.
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Jindal Steel and Power Ltd, the third largest Indian steel manufacturer went to court last year after the Nepal government awarded the 402 MW Arun III project to Satluj Jal Vidyut Nigam, the public sector undertaking owned by the government of India as well as the state government of Himachal Pradesh.
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“Nepal imports around 200 tons of vinyl flooring products every month. We are now manufacturing these products in our plant in Hetauda Industrial Area,” Vikas Kothari, managing director of Everest Vinyl, said at a press conference on Monday.
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The Nepal Stock Exchange (NEPSE) Monday lost 5.94 points on the trading floor. The sensitive index also decreased by 1.67 points. All the major subindices on NEPSE declined on Monday. The hydropower sector was the biggest loser declining 21.97 points followed by the banking sector which was down 8.34 points.
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The Maoist party in the memo asked the government to distribute foodstuff in a quantity that is sufficient to sustain the diarrhea and cholera affected families for the next three months. The party also asked the government to provide Rs 100,000 to the family of each of the deceased and free education to the children of the affected families.
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Staffers of Nepal Electricity Authority (NEA) have asked all unauthorised persons using NEA's vehicles to return the vehicles within a month or face the music, annapurna post daily reported.
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The Indian Seema Surakhya Bal (SSB) has detained two Nepali nationals with Indian currency worth nearly one million rupees from the Indian soils on Sunday evening.
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A year has passed away since the mighty Saptakoshi River swept away villages in Paschim Kusaha, Sunsari district on August 18 (Bhadra 2). But the fear still remains for more than 40,000 people of Sripur, Haripur and Laukahi VDCs who were displaced in the havoc.
POLITICS: Why are Prime Ministerial visits to Nepal so rare? Sandeep Dikshit NEW DELHI: When Madhav Kumar Nepal arrives here on Tuesday, he will be the third Nepalese Prime Minister in as many years to visit New Delhi.
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In contrast, Manmohan Singh in his six years as Prime Minister has not visited Kathmandu once. His predecessor for an equal number of years, Atal Bihari Vajpayee, went to Nepal once. That was not a standalone visit, but of an obligatory nature to attend the SAARC summit of which India is the leading light. For the past 18 years, Nepalese Prime Ministers, and sometimes the King (when he assumed executive powers), would make an annual pilgrimage to India. On the other hand, only three Indian Prime Ministers — Chandrashekhar, P.V. Narasimha Rao and I.K. Gujral — made strictly bilateral visits during these years. There was also a head of state trip by President K.R. Narayanan in 1998. Academics and former diplomats are unanimous that this trend must change. “This sort of a gap is not a very happy state of affairs. I hope after this visit, there would be a Prime Ministerial trip from India too,” said Deb Mukherjee, a former diplomat. “There is regrettably lopsidedness. It is as if India belonged to the Euro-Atlantic community. A good foreign policy is an extension of national policy, and neighbours must have priority,” said strategic analyst M.K. Bhadrakumar. Veteran regional expert S.D. Muni attributes the trend to “our lingering colonial mindset.” He hoped Dr. Singh would be courageous enough to break the tradition, as he did in the case of Bhutan after the installation of an elected government there. “But it seems people surrounding him, both from the security and foreign policy establishments, do not let him do ‘out-of-box’ things, no matter how much he claims to be keen to think out of box,” he felt. For a part of the Nepali ruling elite, paying homage to the Delhi durbar is a smart thing to do. They also test the waters here. Some are known to have assets and wealth parked here. But most veterans find it odd that the Indian leadership doesn’t pay return visits as often as the Russians do with the Germans or the Kazakhs. Chinese President Jiang Zemin set aside five full days for Kyrgyzstan and Uzbekistan, which are tiny as interlocutors for China in terms of economic or political strength, but immensely important for its strategic interests. “It is a combination of lopsided foreign policy priority, false notions of grandeur and instincts of hegemony that colour our attitudes to our neighbours. Certainly it is highly improper for our leaders to say — as they often do — that ‘We can’t choose our neighbours’,” said a former diplomat. Mr. Muni also agrees with the proposition that it is the British mindset that inhibits Indian Prime Ministers from visiting not only Nepal but also most of the smaller neighbours. This is one of the reasons why India breeds alienation among them. He can recall only three Prime Ministers who made path-breaking sojourns to Kathmandu. In 1954, Jawaharlal Nehru went even at the cost of facing black flags. He almost walked across to Bhutan and then Sikkim. Rajiv Gandhi showed some courage but his attempt to win over the Nepalese monarchy through this visit proved counterproductive. Mr. Gujral’s was rated the most successful visit; Mr. Muni, who accompanied him, recalls his having overruled the bureaucracy in granting access to Nepal for trade with Bangladesh through the Siliguri corridor, though on an experimental basis for six months.
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“When the Nepali people’s revolution succeeded in April 2006, I whispered to as many officials as I could that Indian Prime Minister should visit Nepal as a grand gesture to congratulate the people on their struggle. Instead we forced an ailing G.P. Koirala to visit India. He wanted to go to Thailand for a health check-up first, but we prevailed. And, of course, we have punished Prachanda for his defiance of New Delhi in first visiting China.” For the sake of argument, one can say Indian Prime Ministers could not go regularly since the 1990s because of the frequent change of government in Kathmandu, Mr. Mukherjee says. But visits are not Prime Minister-specific, and this reasoning should not hold water. “There should be more reasons. Regardless of who is the Prime Minister, the visits should be returned.” Source: www.hindu.com Date: Aug 18, 2009
India trip: Pancheshwor not the principal agenda The controversial Pancheshwor Hydropower Project will not be Nepal’s principal agenda during Prime Minister Madhav Kumar Nepal’s official India visit, spokesperson for the government Shanker Pokharel has informed. Emerging from the Cabinet meeting held Monday morning, Minister for Information and Communications Pokharel said the Prime Minister will discuss the important issues mentioned while forging high-level political understanding, Pokharel said. "During the trip, agreement that has already been reached on the secretary=level meeting will be discussed and finalised. Also, issues of hydro project, border management, environmental effects and others concerning Nepal will be discussed," he said. He added since this is a friendly trip, no decisions will be made; but few agreements will be reached. When asked about Pancheshwor, the government spokesperson replied, “We haven’t prepared anything special for specific agenda.” Likewise, the meeting finalised that Prime Minister Nepal's wife Gayatri, Ministers for Finance, Foreign Affairs, Tourism, Energy and Supply, National Planning Commission vice-chairman, security personnel, business and media personnel will be accompanying Nepal. Prime Minister Nepal is scheduled to leave for India for a five-day official visit on Tuesday without any concrete agendas. Source: www.kantipuronline.com Date: 2009-08-17
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PM leaves for India today Prime Minister Madhav Kumar Nepal’s four-day visit to India gets underway tomorrow. According to Shankar Pokharel government spokesperson and Minister for Information and Communications, it will be a goodwill visit since no agreement on national interest will be signed on the occasion. “However, some bilateral issues will be discussed and political consensus may be reached,” Pokharel told media persons after today’s Cabinet meeting that was held at Singha Durbar. Talks are likely to be held on border management, renewing Trade and Transit Treaty, water resources and science and environment. “The renewal of Trade and Transit Treaty has already been finalised at secretary-level discussions. There is no specific agenda about Pancheshwor Multi-purpose Project, either,” said the government spokesperson. “The Prime Minister will brief India about the ongoing peace process and political transition,” he added. Though the Cabinet today approved a 38-member government team for the visit, the figure will cross 63 since the delegation includes journalists and industrialists as well. Foreign Minister Sujata Koirala, Minister for Tourism and Civil Aviation Sarat Singh Bhandari, Minister for Energy Dr Prakash Sharan Mahat, Finance Minister Surendra Pandey, Minister for Commerce and Supplies Rajendra Mahato, Minister for Industries Mahendra Prasad Yadav, PM’s wife Gayatri, and vice-chairman of the National Planning Commission Dr Yubraj Khatiwada are part of the contingent. Meanwhile, the Cabinet today decided to write to President Dr Ram Baran Yadav and Vice-President Paramananda Jha for re-oath taking of the latter as per the verdict of the Supreme Court, according to Minister for Law and Justice Prem Bahadur Singh. The Supreme Court had recently scrapped the oath taken by Jha in Hindi last year. The government has also decided to file the Bill on Seventh Amendment of the constitution, which empowers the President and Vice-President to take oath of office and secrecy in their mother tongue in addition to Nepali. “In the case of Vice-President Jha, he will have to take oath in Nepali as per the apex court’s verdict. But in future, a President and Vice-President can take oath in their mother tongue verbally. But s/he will have to sign the oath on both the languages, including Nepali,” explained the minister. The Ministry of Law and Justice today submitted the Bill on Seventh Amendment of the Interim Constitution at the Constituent Assembly secretariat Source: The Himalayan Times Date: 08/18/2009
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Big 3 agree to resume CC business The three largest political parties have agreed on resumption of business at the Constitutional Committee (CC) of the Constituent Assembly (CA). CA Chairman Subas Nembang held a meeting with the chief whips of the three main political parties -- Post Bahadur Bogati of Unified CPN (Maoist), Laxman Ghimire of Nepali Congress and Bhim Acharya of CPN (Unified Marxist-Leninist) -- on Monday to discuss the matter. "We have agreed to expedite CC business through an alternative arrangement until the CC chairperson is elected. The oldest person on the committee will chair its meetings so that its activities can resume," CPN-UML Chief Whip Bhim Acharya told myrepublica.com. The CA secretariat has scheduled the election for CC chairperson on August 28. Work at the crucial CC has been halted for over two months as the post of chairperson remains vacant ever since then chairperson Madhav Kumar Nepal got elected prime minister in May. At the meeting, the chief whips also discussed the proposal of the Parliamentary Hearings Committee to amend the regulations regarding hearings on ambassadorial nominees. Under the existing system, any nominee for an ambassadorial post can be approved in the hearings process if just a single lawmaker votes in favor of the nominee. "We have agreed to forward the proposal on amendment to parliament," Acharya said. They also decided to form a subcommittee in the CC to expedite its business Source: www.myrepublica.com Date: 08/18/2009
CA panels slack, calendar may be deferred As there are only 20 days for the Constituent Assembly (CA) to complete discussions on the concept papers and preliminary drafts prepared by its committees, the CA will be without business from Monday. Six CA committees, including the Constitutional Committee are yet to finalise their concept papers. The Committee on the Distribution of Natural Resources, Financial Rights and Public Revenue, Committee to Determine the Judicial System, Committee to Determine the form of Governance of State, Committee for State Restructuring and Devolution of State Power, Committee on Fundamental Rights and Directive Principles and the Constitutional Committee are yet to finalise their concept papers. According to the CA calendar of events the concept papers should be debated at the CA by Sept. 6. An official at the CA secretariat said achieving this target is unlikely because 30 days are needed for debate on the six committees with five days allocated for each
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committee. He also said the current stalemate is likely to defer the CA calendar amended last month. The CA has already amended its calendar five times due to delay in preparing concept papers. The Committee to Determine Judicial System and Committee on Fundamental Rights and Directive Principles are close to finalising their concept papers. Parties are divided on provisions of appointment of justices, disciplinary action against justices, the jurisdiction of court and reappointment of judges. “If consensus can be built, we can prepare the concept paper in two or three days, but even small issues may cause delay,” said lawmaker Radhe Shyam Adhikari. “If top leaders meet and discuss disputed issues, it will be a lot easier to reach a conclusion,” he added. The Committee on Fundamental Rights and Directive Principles is yet to reach agreement on issuing a common citizenship rather than on the basis of naturalisation or or lineage and the provision of citizenship for foreign citizens marrying Nepali women. The Committee on the Distribution of Natural Resources, Financial Rights and Public Revenue is divided on giving special privileges to local communities and on the use of the term “scientific land reform” or “revolutionary land reform” and ensuring the rights of “food security” or “food sovereignty.” The Committee to Determine the Form of Governance of State finds itself in a stalemate on whether to make the president or prime minister the chief executive of state. It is also divided on the forms of federal and local government and the electoral system. The UCPN (Maoist) has proposed 14 federal units on the basis of ethnicity, language and geography at the Committee for State Restructuring and Devolution of State Power. However, the Nepali Congress and CPN-UML have not yet presented their proposal on the federal units. The Constitutional Committee, which has been defunct since two and half months is scheduled to elect its chairman on Aug. 28. It has also not progressed with its concept paper. Source: www.kantipuronline.com Date: 2009-08-18 Taking oath in Nepali a must for Jha: Govt Following a long-standing row over oath-taking by Vice President Paramananda Jha, a cabinet meeting on Monday requested Jha to take his oath of office and secrecy as vice president in the Nepali language as ordered by the Supreme Court. The cabinet meeting took a decision to this effect with a view to respecting the SC ruling and urged Jha to abide by that ruling.
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Minister for Law and Justice Prem Bahadur Singh said Monday´s cabinet meeting took three key decisions concerning the oath row. First, it decided to ask Jha in writing to respect the court´s verdict and take the oath in Nepali while also urging him to forward his consent over the issue to the government. The cabinet likewise sought his consent on a time schedule for oath-taking in Nepali. Secondly, the cabinet decided to furnish the government´s reply to the apex court regarding preparations for administering oath to Jha in Nepali as required by the SC. Thirdly, the cabinet decided to table a bill to amend the interim constitution and ensure the right to take one´s oath in one´s mother tongue if and when needed. The SC had last week ordered the government, President Ram Baran Yadav and Vice President Jha to furnish their replies to the apex court on preparations being made for administering the oath to Jha in Nepali as per the provision of the interim constitution and the ruling of the court. “The cabinet meeting reached the conclusion that everybody should respect the court´s ruling and decided to resolve the controversy over Jha´s oath-taking accordingly,” Law Minister Singh said, adding, “As per the cabinet decision, the government on Monday sent a letter to Jha seeking his reply whether he is ready to act according to that decision.” Minister Singh informed that the government also sent a letter to President Dr. Ram Baran Yadav, attached to a copy of the government decision regarding the issue. The letter was sent to President Yadav in reply to the letter sent earlier to the government seeking information on the latter´s preparations. Meanwhile, the cabinet also decided to furnish a reply to the SC through the Office of the Attorney General. “The government is committed to respecting and following the SC verdict and administer oath to Jha in Nepali and preparations are going on accordingly,” Singh said quoting the reply sent to the court. The Office of the Prime Minister and Council of Ministers sent the reply to the SC immediately after the cabinet decision Monday. In its reply to the court the prime minister´s office has also enclosed a copy of the decision sent to Jha. Meanwhile Jha said that he will decide whether or not to take oath in Nepali after formally receiving the cabinet´s decision. "Let the government decide what it wants; I will take my own decision later", Jha told myrepublica.com.
Seventh amendment to constitution The cabinet meeting also decided to amend the interim constitution and address the issue of linguistic rights while taking oath, as raised by VP Jha. “One can take oath in any language of one´s choice that is spoken as a mother tongue in Nepal. But one has to sign the oath in Devnagari script before being sworn-in in the language of one´s choice,” Singh said quoting the provision of the bill sent to the parliament secretariat
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on Monday. According to the provision in the new bill, one has to inform the concerned state body 24 hours in advance about the language of choice for the oathtaking ceremony. Minister Singh further clarified that the new provision will not be applicable in Jha´s case as he must take his oath in Nepali as per the interim constitution and Monday´s cabinet decision. “The new provision on taking-oath in the language of one´s choice was approved by Monday´s cabinet meeting with a view to resolving the debate raised concerning linguistic rights.” Source: www.myrepublica.com Date: 08/18/2009
Oli to UML cadres: Expose the Nepal-Maoists to the hilt The Nepal Communist Party- United Marxist Leninists senior leader Mr. K. P. Sharma Oli has appealed his party cadres to expose the Unified Maoists’ Party’s erratic activities to the public. He also said that no further physical attack on the UML cadres would be tolerated by the UML party leadership. “Enough is enough”, Oli said. “I will not tolerate the Maoists’ frequent attacks on my party cadres”, said Oli addressing a cadre training program in Baglung, August 17, 2009. He also alleged the Maoists party for trying to capture the State adopting various tactical measures. However, he said the Maoists’ mal-intent will never become a reality. Ridiculing the media reports that claimed that the party was involved in intense internal crisis, said Oli “Such are baseless reports, we have no differences as such.” “Our cadres need not worry…such debates are common in a democratic party like ours”, Oli summed up. Source: www.telegraphnepal.com Date: 2009-08-18
Upendra yadav threatens Peoples’ Revolt in Nepal Deeply hurt by the split in the party which he solely founded, Mr. Upendra Yadav, the president of the namesake Madhesi Janaadhikar Forum –Yadav faction, has however, surprisingly threatened that a Madhesi Revolt awaited the nation sooner than later.
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Yadav claimed that if the government did not abide by the agreement made in between the United Madhesi Alliance and the then government, the MJF will declare a Peoples’ Revolt. Mr. Yadav, the former Maoist leader and the former foreign minister of the country addressing the concluding session of the cadre training program in Janakpur Dham had threatened for such a revolt. Monday August 17, 2009. Earlier on Sunday, Mr. Yadav apologized for his nonchalance towards the Madhesi population while he was in power. Mr. Yadav was heavily criticized for his frequent foreign junkets when he was the Foreign Minister of Nepal. Source: www.telegraphnepal.com Date: 2009-08-18
POLICY:
HD Report 2009 launched; causes and consequences of conflict not addressed The 2009 Human Development Report on Nepal jointly prepared by the National Planning Commission (NPC) and the United Nations Development Programme (UNDP) was launched amidst a function in Kathmandu, Monday. The report, titled "State transformation and human development" examines the relationship between inclusion, peace and human development. According to the report, three years after the decade long conflict ended, the underlying causes of the conflict have not been resolved, nor have most of the consequences of the conflict. Poverty and discrimination on the basis of caste and ethnicity, which were among the root causes of the conflict, still continue. Ineffective government, internally displaced people and frustrated combatants are some of the outcomes of the conflict and these have to yet to be tackled, the report says. Of about 200,000 people who fled their homes in fear at the height of the conflict, over a quarter still remain displaced. "Democracy, fair representation and effective participation are the tools for ending discrimination," the report suggests. "There can be no peace without justice and no justice without rule of law."
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The report says, although there have been some human development gains, the gap between the advantaged and the disadvantaged regions and caste or ethnic groups is widening or remains the same. The Human Development Index (HDI) has increased from 0.471 in 2006 to 0.509 in 2009. Nepal ranks the last in the among the South Asian countries in the HDI index. The 'absence of war' will alone neither assure a lasting peace nor deliver prosperity, pointed out Robert Piper, UNDP resident representative in Nepal. Nepal's ambitious post-conflict transformation must successfully address centuries of discrimination and exclusion so these patterns are broken forever, Piper added. Bishwa Nath Tiwari, the lead author of the report said, "Fair representation and effective participation is necessary for the transformation of the state. Among others, this can be achieved when the political parties are inclusive in their make-up and transparent in their decision making, when the electoral system provides an opportunity to enable the poor and excluded to represent in the political system, and when the federal structure is accompanied by supplementary constitutional devises based on the principles of justice and equity." Source: www.nepalnews.com Date: August 17, 2009
Demand for immigration office at Jogbani By Lila Ballav Ghimire BIRATNAGAR, Aug 18 - Tourism and hotel entrepreneurs in eastern Nepal have appealed to the government to raise the issue of opening an immigration office at the Jogbani border during Prime Minister Nepal's visit to India. They said that they had not been able to bring tourists to the eastern region for lack of an immigration office which could be set up with a little effort by the government. Bhabish Kumar Shrestha, president of the Biratnagar Association of Travel Agents, said that the tourism sector in eastern Nepal had been hindered because there was no immigration office. He said that if the government opened an office here, sightseers could reach Bhedetar, Millkeyjaljaley, Sankhu-wasabha, Taplejung, Ilam and Darjeeling, India in less time. Currently, tourists arriving from Gaya, India have to make a detour to Kakkarbhitta to enter Nepal. "That's the only place they can enter Nepal to travel to Kathmandu," said Shrestha. He said that Biratnagar possessed much tourism potential but it could not be exploited. Tourism and hotel entrepreneurs said that they had been losing business because foreign visitors were not allowed to enter Nepal through Jogbani.
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Rajendra Shrestha, owner of the Swagatam Hotel, said that the hotel business had not been able to expand as there were no tourists. Mahesh Jaju, president of the Morang Merchants Association, said that it was essential to establish an immigration office at the Jogbani border as it was linked to New Delhi and Kolkata by Indian Railways. He said that they had been urging the government to open an office for the last 20 years without any effect. He added that they had even talked to former prime minister Girija Prasad Koirala who is a resident of Biratnagar. "The present prime minister is also very familiar with Biratnagar and the foreign minister also belongs to this place," said Jaju. "Thus, if they take this matter seriously, the office will be set up." Shashi Shekhar Shrestha, chief district officer of Morang, said that since immigration offices needed to be established on either side of the Nepal-India border, it could happen if India took up the matter seriously. Source: www.kantipuronline.com Date: 2009-08-18
BANKING / CURRENCY: Deposit insurance yet to get off ground By Prithvi Man Shrestha Nepal Rastra Bank governor Bijaya Nath Bhattarai has said that bank deposits will be insured by the Deposit and Credit Guarantee Corporation (DCGC) to protect depositors, however, its capability is doubtful because of its limited capital base and untrained lower-level employees. As the government through the budget for the current fiscal year made a compulsory provision of deposit insurance up to Rs. 200,000, governor Bhattarai commented that NRB was of the mind to start with the existing institution that was also meant to insure deposits. The DCGC has, however, never insured deposits although the government introduced policies even in the past. Among the shortcomings of the DCGC is its limited capital base. Its paid-up stands at just Rs. 70 million and its authorized and issued capital at just Rs. 100 million each. Its guarantee for credit has also been decreasing over the last few years after NRB phased out priority sector loans although the DCGC used to guarantee credit for the priority sector. Its guarantee amount declined by 41.32 percent in the fiscal year 2007/08 against the previous year. NRB officials and bankers agree that there should be a financially strong institution to insure deposits. A senior NRB official said that it would be a joke to dare operating an 13
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institution that insures deposits if the institution does not have at least Rs. 10 billion in paid-up capital. According to officials, there has been talk about starting a deposit insurance scheme through the DCGC with around Rs. 500 million. The main motive of deposit insurance is to return the deposit of ordinary depositors through the deposit insurer if the financial institution fails to return the deposit like in the case of Nepal Development Bank. The government has also not allocated a big budget for the purpose. Sashin Joshi, president of the Nepal Bankers' Association, said that a financially strong institution was a must as the estimated amount of deposits worth Rs. 200,000 in the commercial banks would total Rs. 160 billion. There are deposits worth Rs. 550 billion in commercial banks, according to NRB. Another problem with the DCGC is its untrained and small number of employees. There are just 17 employees with one general manager, one deputy general manager, two eighth grade employees, one seventh grade employee, four sixth grade employees, a computer operator and four chief assistants. The number of employees in the DCGC was downsized through the Voluntary Retirement Scheme this year from 25 employees. It’s general manager Chandra Man Maleku said that no employee of the DCGC was trained in deposit insurance. There is also no technology to deal with deposit insurance with the DCGC. There is also no legal provision regarding deposit insurance in the country. The DCGC is being run under the Company Act. The proposed draft of the new bank and Financial Institution Act has proposed deposit insurance up to Rs. 100,000, according to an NRB official. According to the draft, the insurer should pay back against the deposits up to Rs. 100,000 as the first priority. The DCGC has also presented a draft act to the government with the provision of deposit insurance last April, said Malegu. The NRB official said that the deposit insurer must play the role of regulator as well given that it should be liable to pay in case the financial institution fails. "That's why, such institutions cannot be run from the private sector," said the NRB official. NBA president Joshi said that there were two types of models in practice internationally, one is creation of an independent body with regulatory powers and another is forming a subsidiary of the central bank. According to NRB officials, it is doing its homework to form a committee to study the matter. NRB also urged the central bank on Sunday to start deposit insurance as per the international norms. Source: www.kantipuronline.com Date: 2009-08-18
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Forex facility for hydro Nepal Rastra Bank (NRB) board on Monday decided to provide US dollars for importing materials for hydropower projects up to seven megawatt from India. Earlier, only the hydro projects up to five megawatts were allowed to import materials in dollar from India. "As the materials can be imported at relatively cheaper price in dollars, we decided to permit spending dollars for the purpose," said a board member. On the other hand, the NRB board also decided to provide dollar facility to import the equipments related to press. Source: www.kantipuronline.com Date: 2009-08-18
New board in NBL Nepal Rastra Bank has appointed Dr. Puspa Raj Rajkarnikar as coordinator of the management committee of Nepal Bank Limited with effect from Aug. 12. He was sworn-in by NRB governor Bijaya Nath Bhattarai on Monday. The central bank appointed six-member management committee for indefinite period until next decision is taken in this regard. Other members of the committee are Pramod Raj Sharma, Dr. Keshav Raj Khadka, Surendra Mani Tripathi, Dr. Chandra Mani Adhikari and Ramesh Prasad Sharma Upadhyaya. Source: www.kantipuronline.com Date: 2009-08-18 Banks flock to Kavre By Manoj Basnet PANAUTI (KAVRE), Aug 18 - Kavrepalanchok is fast turning into a district of banks with 36 banks having their offices here. After Kathmandu, Kavre has the highest number of banks and financial institutions. The district hosts the central offices of eight development banks. Among them are Annapurna Development Bank, Pashupati Development Bank, Infrastructure Development Bank, Diyalo Bikas Bank and Country Development Bank. Likewise, 10 commercial banks maintain branches in Kavre with around a dozen more commercial and development banks planning to do so. Nepal Rastra Bank regulations require prospective national-level development banks to have a paid-up capital of Rs. 640 million. However, development banks with
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limited capital can be established outside Kathmandu, reason for eight development banks already being established in Kavre. Similarly, banks and financial institutions have to open one branch outside Kathmandu for every branch they open in the capital as per the central bank's regulations. And Kavre has become an ideal location for commercial banks. According to Kumar Thapa, Kavre branch chief of Nepal Investment Bank, proximity to Kathmandu and the planned opening of the BP Highway in the near future are the reasons for the mushrooming of banks in Kavre. The proliferation of banks and financial institutions has made banking services easier and affordable for consumers. Stiff competition among the banks has increased the interest rates on deposits. "Earlier, one had to go to the banks to get loans, now they are coming to us," said Kanchan Bade, a petrol pump owner. With Kavre as a base, banks can do business in Sindhupalchok, Ramechhap, Dolkha, Sindhuli and Bhaktapur districts. "One can open a development bank with limited capital and can cover 10 districts," said Ram Sharan Neupane, managing director of Diyalo Bikas Bank. "That is why we've opened the bank." According to Neupane, the banks in Kavre do daily transaction worth Rs. 150 to Rs. 200 million. Source: www.kantipuronline.com Date: 2009-08-18
BUSINESS & ECONOMY: Party over, NOC stares at loss After a spell of profit, Nepal Oil Corporation (NOC) — the state oil monopoly — has again plunged into the red. As per the new rates, which the NOC received today from its sole supplier, the Indian Oil Corporation (IOC), its loss will be around Rs 200 million monthly, said Mukunda Prasad Dhungel, spokesperson, NOC. In July, the NOC earned a profit of Rs 120 million. But, as per the rate on August 1, the corporation broke even since it was paying off the earlier debts and interests on loans. Last year, the NOC’s cumulative loss was around Rs 17 billion. Fortunately, it managed to whittle down the outstanding amount to Rs 10.80 billion, thanks to falling international crude prices. But, the northward movement of global oil prices has forced the IOC to increase the prices. “The new buying rate for diesel at Raxaul Depot
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is Rs 43.98 per litre, up from Rs 41.02. While, petrol is at Rs 43.18 per litre, up from Rs 39.16,” he said. The retail price is fixed after adding the following components — 13 per cent VAT, transportation cost, road maintenance tax, customs, pollution tax and dealers’ commission. “The current retail prices of petrol — at Rs 77.50 per litre — and diesel — Rs 55 per litre — has to be revised. Else, the NOC will have to bear the loss,” added Dhungel. The NOC started making profit when the downward revision of prices started in October, 2008, which continued till March. Every month — on 16th as per the Roman calendar — the NOC receives a new price list for petrol and diesel from the IOC. However, on the first of every month, it receives the new price list for petrol, diesel, kerosene, Air Turbine Fuel and cooking gas. NPDA-labour union talks today KATHMANDU: The ongoing dispute between the Nepal Petroleum Labourers’ Union and the Nepal Petroleum Dealers’ Association (NPDA) has hit the supply of petroleum products across the nation. For the last days, fuel is available in the capital at petrol pumps run by the army, police and Sajha. Though talks between the two sides failed on Sunday, there will be another round of dialogue on Tuesday. The labourers’ union is demanding minimum monthly salary of Rs 6,000, uniform and other benefits. Source: The Himalayan Times Date: 08/18/2009
Nepal Tourism Year 2011 committee meeting held The second meeting of the Main Organising Committee of Nepal Tourism Year (NTY) 2011 national campaign was held on August 16 under the chairmanship of Tourism Minister and chairman of Main Organizing Committee Sarat Singh Bhandari. During the meeting, member-secretary and CEO of NTB Prachanda Man Shrestha presented the programs prepared by 14 sub-committees and 5 regional committees through series of meetings and discussions held after the first meeting on January 18, and the publicity received till date. According to the Nepal Tourism Board (NTB), secretaries of various ministries gave suggestions and committed to work in the areas concerned to their ministries for making NTY a success. Similarly, private sector participants also gave suggestions towards areas to be improved in the tourism sector.
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The meeting concluded that to make NTY 2011 a success, wider participation in the Main Organizing Committee should be sought, execution of programs should be done through a high-level empowered working committee under the Main Organizing Committee and more than 25 jobs that need to be carried out by the different ministries and the government offices should be executed with the support of the Tourism Council. Fifty-eights persons including member of National Planning Commission Dr. Pushkar Bajracharya, secretaries of different ministries, representatives of government agencies, heads of tourism associations and officials of Ministry of Tourism & Civil Aviation participated in the meeting. Source: www.nepalnews.com Date: August 17, 2009
NT, Saudi Telecom to join hands Tariff on calls to come down Nepal Telecom (NT) will soon sign an agreement with Saudi Telecom of Saudi Arabia, which is expected to give respite to Nepalis paying huge amounts while making calls to and from one of the largest Nepali workers absorbing country. Under the agreement, both the telecom companies will link each other´s network via optical fiber cables. NT has already laid optical fiber cables along the East-West Highway. These cables are linked with those installed by BSNL, Airtel and Tata Communications of India. The cables installed by all three Indian telecom companies, on the other hand, are linked with optical fibers laid by most of the telecom companies around the globe. "We will basically make use of one of the networks to link our network with that of Saudi Telecom´s," a high-ranking official of NT told myrepublica.com on condition of anonymity. To get this access, Nepal´s telecom giant is currently negotiating with all three Indian companies on rental charges. It will sign the agreement with the company that offers NT a better rate. "The rental charges on optical fiber network will not be as high as in the case of satellite network. This will help reduce our operating cost," the source said. At present, NT and Saudi Telecom are both using satellite links to place calls on each other´s networks. Rentals on these mobile communication devices are generally high, making tariff rates on calls made to and from Saudi Arabia expensive. Currently, NT charges Rs 50 for per minute of call to Saudi Arabia. Even on the budget call option, customers have to pay Rs 25 per minute.
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"But once we sign the agreement, we will get the leverage to reduce tariffs," the source said. "This will provide relief to Nepalis in Saudi Arabia to call home and give respite to their family members who have to pay huge amounts to call them.” NT has, however, clarified that optical fiber cables will not completely replace the satellite link. "The satellite, which is currently being used to hook up networks of the two telecom companies, will also be in place even after signing the pact. But the optical fiber connection will provide a better alternative to the existing connection," the source said. Source: www.myrepublica.com Date: 08/18/2009 Nepal to crack Israel nut After a four-month ban on Nepali migrant workers entering Israel, the Nepal government has finally decided to settle the problem. The Ministry of Labour and Transport Management (MoLTM) will send a high-level team to Israel led by Labour Minister Mohamed Aftab Alam on Wednesday. According to Sthaneshwor Devkota, executive director of Foreign Employment Promotion Board (FEPB), the team has three agenda — situation analysis, expansion of labour market and feasibility study of establishing a safe house. “As Nepali women are in a majority in Israel we want to establish a safe house there,” he said. “MoLTM is sending a six-member delegation led by the minister,” said Purna Chandra Bhattarai, joint-secretary. According to Bhattarai, the team includes a member from the Ministry of Foreign Affairs (MoFA) for labour diplomacy. Israel banned Nepali workers since April 24, when a study commissioned by Israel’s Interior Ministry found around 1,000 Nepali workers working there illegally. The ministry blamed Nepali outsourcing agencies for illegal stay of Nepali workers. Around 12,000 Nepalis are working in Israel and over 80 per cent of them are women working as care-givers. MoLTM’s high-level team includes Devkota, Narayan Pant from MoFA, Bhushan Pokhrel, private secretary of the minister, Pitambar Abuhang from the Department of Foreign Employment (DoFE) and two members from the ministry. The team also includes owners of foreign employment agencies. “They will have to bear their own cost,” said Devekota. Becoming illegal workers is not the fault of Nepali migrant workers, Yaakov Ganot, head of Israel’s Interior Ministry’s Population Department had said. Rather, they are victimised by groups who bring them to Israel in exchange for $8,000 to $12,000 to work in sectors where they have no experience, He added. ‘We will not issue permits until we get a satisfactory answer from the Nepali authorities,” he had said. Responding to the Israeli government’s query, Nepali foreign employment agencies and the government reduced the service fee to $3,000 and promised to provide a
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guarantee of the workers on June. But, Israel has not agreed to lift the ban until a high-level team comes from Nepal. The ban on Nepali workers entering Israel has affected around 5,00 workers who have completed all processes except getting visa.Minister Alam will also take part in a Non-Resident Nepali conference in Dubai while returning from Israel. Source: The Himalayan Times Date: 08/18/2009
Jindal Steel loses Nepal bid to Indian PSU Jindal Steel and Power Ltd, the third largest Indian steel manufacturer whose owners are ranked among the 20 richest Indians by Forbes magazine, has lost its bitter battle for control of a much-sought-after hydro power project in Nepal with the republic's apex court upholding the contract to another Indian contender. Jindal went to court last year after the Nepal government awarded the 402 MW Arun III project to Satluj Jal Vidyut Nigam, the public sector undertaking owned by the government of India as well as the state government of Himachal Pradesh. Jindal Steel & Power raises Rs 500 cr via bonds After the sea change in Nepal's political scenario in 2006, when a new coalition government replaced the regime of King Gyanendra, the hydropower sector was opened to international players and nine companies, mostly Indian, had bid for Arun III. Jindal's bid was among the most attractive with its offer to provide 21 per cent free energy to power-starved Nepal. Jindal Steel Q1 net down 25.40% However, the then Girija Prasad Koirala government of Nepal amended the criteria, which had earlier sought only private players, allowing bids from the public sector as well. Satluj was also allowed to amend its free energy offer to 21 per cent from the initial 4.5 per cent. Jindal sought court remedy, alleging that the awarding of the contract to its Indian competitor was illegal. Source: http://sify.com Date: 2009-08-17
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Nepali vinyl and flooring products hit market Everest Vinyl Pvt Ltd and Everest Polymer have appointed Rajesh Concern as its authorized sale agent and also launched vinyl and flooring products in Nepali market. “Nepal imports around 200 tons of vinyl flooring products every month. We are now manufacturing these products in our plant in Hetauda Industrial Area,” Vikas Kothari, managing director of Everest Vinyl, said at a press conference on Monday. The company´s product range includes normal PVC flooring, stud flooring and antistatic flooring; PVC film sheets used to make rain coats, shower curtains and table clothes; PP spunbond non-woven fabric used for ´environment friendly´ shopping bags; synthetic leather and coated fabrics or Rexine used in shoes, footballs, mats and purses. “Our products are the same quality as ones used by Mercedes and Chrysler in their car upholstery,” Kothari said. Rajesh Kazi Shrestha of Rajesh Concern said the products, which are 3 mm to 40mm thick, were also tear-proof and would not be damaged even by sharp objects like knives. “The flooring products are better than a lot of the imports now available in the market,” he added. Source: www.myrepublica.com Date: 2009-08-18
MARKET: NEPSE drops 5.94pt The Nepal Stock Exchange (NEPSE) Monday lost 5.94 points on the trading floor. The sensitive index also decreased by 1.67 points. All the major sub-indices on NEPSE declined on Monday. The hydropower sector was the biggest loser declining 21.97 points followed by the banking sector which was down 8.34 points. The share market witnessed a total turnover of Rs. 126.08 million with 190,531 shares being traded. Shares of 66 companies changed hands on NEPSE. Among the 21 commercial banks listed on NEPSE, Nabil Bank's promoter shares posted the biggest growth with its stock rising by 60 points while Everest Bank lost the most on the trading floor by shedding 154 points. Similarly, among the 15 development banks whose shares were traded on NEPSE on Monday, Pashupati Development Bank witnessed the highest increase of 22 points while Sanima Bikas dropped 18 points.
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Among the 23 finance companies on NEPSE, Pokhara Finance was the highest gainer with an increase of 44 points, whereas Fewa Finance lost the most by shedding 436 points. The top five winners on NEPSE were Pokhara Finance with a 9.93 percent rise in its stock price followed by Pashupati Development Bank, World Merchant Bank, Nabil Bank's promoter shares and Central Finance. Similarly, the top five losers on Monday were Fewa Finance which fell 53.43 percent followed by Kuber Merchant Bittiya Sanstha, Everest Bank, Shikhar Bittiya Sanstha and Lumbini General Insurance. Nabil Bank topped the chart in terms of turnover with Rs. 25.20 million. Source: www.kantipuronline.com Date: 2009-08-18
GENERAL:
UCPN-M asks govt to provide relief aid, free foodstuff to diarrhea-hit population In a memorandum to the Prime Minister, the Unified CPN (Maoist) Monday asked the government to distribute foodstuff in mid and far-western villages that have been reeling under diarrhea and cholera outbreak for the past several weeks. The Maoist party in the memo asked the government to distribute foodstuff in a quantity that is sufficient to sustain the diarrhea and cholera affected families for the next three months. The party also asked the government to provide Rs 100,000 to the family of each of the deceased and free education to the children of the affected families. The memo also urged the government to declare the affected parts as 'health crisis zone'. Maoist vice-chairman Dr Baburam Bhattarai submitted the memorandum to Prime Minister Madhav Kumar Nepal. Receiving the memo, PM Nepal assured that the government would take every measure to contain the diarrhea outbreak and provide relief to the affected population. Meanwhile, two Maoist lawmakers who visited the diarrhea affected villages of Jajarkot and Rukum districts leading a team of volunteers that included health workers have fallen victims of the disease. Maoist lawmakers from Rukum, Janardan Sharma and Kamala Roka, had to treated from their help mission after they were detected with diarrhea.
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Sharma is receiving treatment at Janamaitri Hospital in Kathmandu while Roka has been undergoing treatment at the mission hospital in Chaurjahari, Rukum. Meanwhile, two more persons died of diarrhea in Dailekh on Sunday night, taking the death toll in the district to 24. The deceased have been identified as Bhada Sarki, 32 and Tul Bir Sunar, 50, both residents of Nepa VDC-7 The two died due to the lack of health facilities, reports quoted district health officials as saying. As part of the immediate relief package, the government has said it will build at least 5000 modern toilets within three months in the diarrhea-cholera affected area of midwestern hilly districts. The government has also plans to build an orphanage in some diarrhea affected district to house those who have lost both parents to the epidemic. Though the government has claimed that the diarrhea epidemic has largely come under control in the Mid-West and Far-West districts, the disease continues to take more lives. According to government figures, the diarrhea epidemic has already claimed over 250 lives in the region. Source: www.nepalnews.com Date: August 17, 2009
NEA staffers issue ultimatum to return their vehicles Staffers of Nepal Electricity Authority (NEA) have asked all unauthorised persons using NEA's vehicles to return the vehicles within a month or face the music, annapurna post daily reported. Speaking at the programme organised in the capital to mark NEA's 24th anniversary Monday, chairman of Employees Welfare Council Bal Krishna Shrestha warned said, "If our vehicles are not returned within a month, we will take action wherever we find them." Prime Minsiter Madhav Kumar Nepal, energy minister Dr Prakash Sharan Mahat, state minister for energy Chandra Singh Bhattarai and energy secretary Shankar Koirala are among those who are using NEA's vehicles. Likewise, former Prime Ministers Sher Bahadur Deuba, Krishna Prasad Bhattarai and Pushpa Kamal Dahal have still not returned the NEA's vehicles they used as the PM. UML leader Khadga Prasad Sharma Oli is also using the vehicle owned by Chamelia hydro-electric project. An NEA staffer Ajit Tamang said, about thirteen expensive vehicles belonging to the NEA were being used outside the NEA.
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Even the Commission for Investigation of Abuse of Authority (CIAA) is using a vehicle of NEA, Tamang said. NEA's accumulated loss has crossed Rs 4 billion in the current fiscal year. Source: www.nepalnews.com Date: August 18, 2009
Two Nepalis held in India Chitranga Thapa MAHENDRANAGAR, Aug 17 - The Indian Seema Surakhya Bal (SSB) has detained two Nepali nationals with Indian currency worth nearly one million rupees from the Indian soils on Sunday evening. The Indian security force deployed along the Nepal-India border detained Man Bahadur Bohara, resident of Kotha VDC-4 of Bajhang, and Dev Rokaya, resident of Melbishuna-2. According to Kanchanpur Police Chief SP Madhav Nepal, the SSB confiscated Indian currency Rs 612,000 in course of checking near the Sharada Barrack. The detainees have claimed that they earned the money through hard labour and were bringing it home to celebrate Gaura festival. The SSB has handed over the duo to the customs office in India. A police team from Gaddha Post has already left to gather further information. Source: www.kantipuronline.com Date: 2009-08-17
One year already, Koshi nightmare still haunting Abadesh Kumar Jha SUNSARI - A year has passed away since the mighty Saptakoshi River swept away villages in Paschim Kusaha, Sunsari district on August 18 (Bhadra 2). But the fear still remains for more than 40,000 people of Sripur, Haripur and Laukahi VDCs who were displaced in the havoc. Having taken shelter at temporary camps for about nine months, they still have not been able to return home with a calm heart.
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“Everything was washed away. When two meals a day is not sure, how can I build a house now?” a victim Maimul Bibee says. A former owner of a house and six bighas of land, she now lives in a hut set up near Lokmarg. The Koshi victims say the government is not serious towards their problem. “The government has stopped providing ration since April. They are trying to kill us,” coordinator of the Koshi Victims Struggle Committee Panchanarayan Mandal says. Earlier, each family used to get Rs 5,000 for ration. The government is learnt to have spent about Rs 440 million for the Koshi victims so far. According to Chief District Officer Hari Krishna Upadhyay, among the total 7,563 identified victim families of the Koshi deluge the government has provided Rs 50,050 to 7,502 families each for the house damages. Another package programme of Rs 1.6 billion is in the offing for the displaced, he said. The CDO also complained that the support coming for the Koshi victims from various quarters is unclear. “We have no information on who spends home much on what. They spend more on themselves for office and stuffs instead on the victims.” Risk still there Engineer at the Department for Water-Induced Disaster Prevention (DWIDP) Mohan Bhattarai claims Koshi is still not out of risk. “The spurs that protect the embankment haven’t been repaired for a long time,” he says. A technician at the Koshi Barrage says many doors among the 56 doors of the Koshi Barrage cannot be opened from the control room. “Now they can’t be opened as soon as the water level rises in the river.” Source: www.kantipuronline.com Date: 2009-08-17
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