R&D Economic Research & Business Development
Date: August 20, 2009
Highlights
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Indian Prime Minister Dr Manmohan Singh has assured full cooperation in Nepal's endeavour to bring the peace process to a logical conclusion and its pursuit of achieving economic and overall growth and development.
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Starting his high-profile meetings on the second day of his India tour, Prime Minister Madhav Kumar Nepal met with Indian Minister for External Affairs S.M Krishna on Wednesday.
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Prime Minister Madhav Kumar Nepal has asked the Indian business leaders for investment in a number of sectors such as hydropower, roads, bridges, infrastructure, construction materials, tourism, health, education and financial institutions in Nepal.
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The Central Committee (CC) members of the Nepali Congress (NC) have criticised Foreign Minister Sujata Koirala for withdrawing from prime minister’s delegation to India in the last hour.
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DPM Bijaya Kumar Gachhadar Wednesday described the foreign minister’s act of cancelling her participation in the Prime Minister’s India trip as a violation of diplomatic protocol.
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Matrika Yadav, the chairman of the Nepal Communist Party-Maoist restructured has refused recently to accept the strange gift provided by RAW Nepal Chief, Alok Joshi.
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The Janadharana weekly dated August 20, 2009, claims that the Minister counselor and the RAW station-in-charge, Alok Joshi, had offered Mr. Yadav a packet full of Indian currency notes in a rectangular packet.
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While Prime Minister Madhav Kumar Nepal is busy telling Indian leaders in New Delhi that despite his intention to include the Maoists in the government, he is yet to get their support, at home, the Unified CPN (Maoist) appears to be refusing to budge from its stance.
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President Dr Ram Baran Yadav has expressed concern over the Supreme Court order regarding Vice-President Paramananda Jha’s oath controversy. He made his displeasure apparent in a letter, which was submitted to the apex court today.
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The U.S. Agency for International Development (Nepal USAID-Kathmandu) has one cooperative agreement opportunity for the implementation of a program that will improve the quality of services for war victims and those who have suffered from mobility-related injuries. The estimated total program
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funding available was cited as $1,200,000, although no specific amount for this award was indicated by the agency. •
In a bid to support Nepal’s beleaguered peace process and check China’s growing influence, India has decided to pump in crores of rupees into the neighboring nation’s infrastructure.
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The State Affairs Committee of the Legislature Parliament on Wednesday began an investigation into the embezzlement case related to the purchase of logistical supplies for the Formed Police Unit of Nepal Police stationed in Sudan.
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Nepal and India are yet to reach a breakthrough on a contentious issue of controlling unauthorized trade, which has reduced a possibility of signing an agreement to renew and update the Trade Treaty.
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Nepal requires a significant humanitarian assistance due to a combination of factors: drought, ongoing civil and political tension, chronic underlying vulnerabilities, natural disaster and by global economic, fuel and food crises of the recent times, says a United Nation’s report.
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The number of Nepali workers leaving for overseas jobs slumped by a whopping 21.34 percent in the first month of the current fiscal year 2009/10 compared to the same period of the last fiscal year.
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Import of expensive and sophisticated cars produced in third countries has been completely occluded for one month. The import was halted when the finance ministry made the custom evaluation of cars equal to that of the vehicles imported for diplomatic agencies.
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Potato traders and farmers have said that the price of the king of vegetables, which has been rising continuously for the past five months due to reduced production, does not look like coming down anytime soon.
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Though the Ministry of Agriculture and Cooperatives has given the nod to increase the price of milk, dairy industries are shying away from implementing the price hike.
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Lokta Paper is taking its old place after 11 years. Come 2010 and you’ll have a Nepali citizenship card from Nepali handmade paper like in the old days. But this time around, it will be a card unlike the earlier book format.
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Chitwan-based entrepreneurs, political parties and stakeholders associated with wildlife conservation have asked the government to make the final decision on the closure of the seven jungle resorts inside Chitwan National Park only after studying their negative and positive outputs.
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The Hotel and Beverage Association has demanded that hotel and beverage businesses based outside the Kathmandu Valley should be exempted from income tax and excise duty. 2
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The Nepal Stock Exchange (NEPSE) Wednesday lost 0.95 point on the trading floor. The sensitive index also decreased by 1.5 points. The development bank sector lost the most by shedding 8.98 points followed by the banking, insurance and finance sectors which went down by 3.82 points, 1.4 points and 0.91 point respectively.
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Supporters of the UCPN (Maoist) are yet to return to the rightful owners the land and houses they seized in Kailali district during the decade-long insurgency, despite the Maoist leadership's oft-repeated commitment to the handover of the captured assets.
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Hunger rates are most severe in the western regions of Nepal, which already ranks near the bottom of the global hunger index, according to a new report by the United Nations World Food Programme (WFP), which is examining food insecurity levels within the South Asian nation.
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Five government secretaries are appearing in person before the Supreme Court on Thursday, with details of their plan on cleaning, restoring and conserving the polluted Bagmati River.
POLITICS:
PM Trip: Peace, projects at top Indian Prime Minister Dr Manmohan Singh has assured full cooperation in Nepal's endeavour to bring the peace process to a logical conclusion and its pursuit of achieving economic and overall growth and development. The Indian PM gave this assurance to visiting PM Madhav Kumar Nepal here today. Both the PMs held talks for two hours in Hyderabad House here this evening, said Dr Madan Bhattarai, secretary and spokesperson, Ministry of Foreign Affairs. According to Dr Bhattarai, the PM requested his Indian counterpart to carry out new and existing development projects in Nepal in a time- bound manner. The PM also asked the Indian government to carry out building of Postal Road (Hulaki Marga) and Tanakpur-Mahakali link road and Pancheshwor like projects within a timeframe. “If we can complete these projects without any delay, it will give a positive message about India in Nepal," Dr Bhattarai quoted the PM as saying. The PM also requested the Indian government to carry out the Detailed Project Report of the Pancheshwor Multipurpose Project soon. "There are some problems in our country that have roots in poverty and backwardness. We can address those problems by making the peace dividends to the
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needy," Dr Bhattarai quoted the PM as telling Dr Singh.The PM lauded Indian cooperation in Nepal's development and requested Dr Singh to increase the assistance to his nation so that the bilateral relation could reach a new height. According to Dr Bhattarai, Dr Manmohan Singh assured that India was ready to provide all kinds of cooperation in Nepal's quest for development. He also said that mutual trust and confidence should be the basis of bilateral cooperation and India was committed to promote its relation with Nepal on those grounds. The Indian government has agreed to help Nepal establish a police academy to improve the law and order situation. “The Indian PM was supportive of all proposals put forth by our PM,� said Dr Bhattarai, who was privy to the meeting. He said that the Indian government was keen to finalise the extradition treaty, strip map and mutual legal assistance document to which the PM said a broader consensus needed back home. Asked if any thorny issues were raised during the bilateral relations, Dr Bhattarai said: "There is no bone of contention on any matter.� He, however, said that both the parties agreed to hold more dialogues to thrash out some technical aspects on the renewal of the Trade and Transit Treaty. Commerce and Supplies Minister Rajendra Mahato had said that Nepal wanted to have a provision in the new trade treaty. But, the Indian side expressed reservation on the proposal. There will be further talks to iron out the differences. Earlier, the PM met UPA chairman Sonia Gandhi, Indian President Pratibha Devi Singh Patil, Vice-President M Hamid Ansari and Foreign Minister SM Krishna. According to Minister for Tourism Sharat Singh Bhandari, who was privy to the meeting, Gandhi told the PM that Nepal and India should not be preoccupied with petty differences and should rather focus on exploiting development potential in both the countries on the basis of mutual cooperation. Source: The Himalayan Times Date: 08/20/2009
PM Nepal starts high-level consultation, meets Indian External Affairs Minister Krishna Starting his high-profile meetings on the second day of his India tour, Prime Minister Madhav Kumar Nepal met with Indian Minister for External Affairs S.M Krishna on Wednesday. The ongoing peace process in Nepal, constitution drafting process and the fresh agitation begun by the Maoists featured highly during the meeting held at Hotel Oberoi, where PM Nepal is staying with his entourage that includes his spouse Gayatri Nepal, senior cabinet ministers and government officials, it is learnt.
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Emerging from the meeting, Minister Krishna said that matters related to bilateral issues and other topics of mutual interest were discussed during the meeting. During the meeting, the Indian External Affairs minister had shown keen interest on the topic of integration and rehabilitation of Maoist combatants and the month-long agitation waged by the Maoist party raising the contentious issues of 'civilian supremacy'. Krishna also expressed confidence in PM Nepal's capability to take the peace process to its logical conclusion. PM Nepal is scheduled to hold separate meetings with Indian President Pratibha Patil, Vice President Mohammad Hamid Ansari and ruling Congress (I) President Sonia Gandhi shortly. Later at 6 pm in the evening, he is scheduled to hold bilateral meetings with his Indian counterpart Prime Minister Man Mohan Singh. Hydropower development, renewal of Nepal-India trade treaty, border security and other matters related to bilateral interests will be discussed during the meeting that will be held at the official residence of the Indian prime minister, according to reports. Earlier today morning, PM Nepal laid a wreath at Mahatma Gandhi's memorial and said he was profoundly influenced by Gandhi's teaching of non-violence and followed it his entire life. PM Nepal had arrived in New Delhi for a five-day official visit on Tuesday. Indian Minister for State for External Affairs (MEA) Parneet Kaur and Indian Ambassador to Nepal Rakesh Sood had received PM Nepal at the Indira Gandhi International Airport. PM Nepal had started consultations with Indian political leaders shortly after that. PM Nepal met with leader of Indian Communist Party Sitaram Yechuri in Hotel Oberoi, New Delhi on Tuesday. PM Nepal informed Yechuri of the progress in the peace process and the current political situation in Nepal. During the meeting, PM Nepal invited Yechuri to visit Nepal and talk to the Maoist leaders. Nepal also met leader of Bharatiya Janata Party (BJP) Arun Jetley. Yechuri had played an important role in bringing the Maoists of Nepal to mainstream politics by facilitating the talks between the Maoists and other political parties. Later in the evening PM Nepal addressed two separate functions. He addressed the Nepali community living in India at the Nepali Embassy in New Delhi and the Indian community at a dinner hosted by Dev Prakash Tripathi, President of Nepal Democracy Solidarity Group and leader of the Nationalist Congress Party (NDSG), in his honour. NDSG was formed to support the democratic movement in Nepal.
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Source: www.nepalnews.com Date: August 19, 2009
PM invites Indian business leaders to invest in post-conflict Nepal Prime Minister Madhav Kumar Nepal has asked the Indian business leaders for investment in a number of sectors such as hydropower, roads, bridges, infrastructure, construction materials, tourism, health, education and financial institutions in Nepal. Addressing the gathering of Indian businessmen in Delhi on Wednesday, PM Nepal said since Nepal government has concentrated its attention for massive investment in reconstruction to recover the losses incurred during the decade-long insurgency, Nepal has bright prospects for investments. He said the government is ever ready to protect the interest of the investors and provide security for them, adding Nepal is seeking enhanced foreign investment at this time. He further said, government will ensures swift decision on big projects and provide necessary facilities for such projects. To facilitate this, the government will shortly announce the establishment of an Investment Board under the leadership of prime minister. Mentioning that conflict-hit Nepali have expected relief, PM Nepal underlined the priorities of his government as successful conclusion of the peace process, writing the constitution on time and providing a peace dividend to the general people. He mentioned that Nepal is making progress in the peace process, adding rapid economic growth and inclusive social advancement can only make a peace process stable. While talking on continued imbalanced bilateral trade between Nepal and India, PM Nepal said trade liberalisation, removal of custom restrictions and increasing investment in Nepal would downsize the trade imbalance. Source: www.nepalnews.com Date: August 19, 2009
NC leaders criticise Sujata The Central Committee (CC) members of the Nepali Congress (NC) have criticised Foreign Minister Sujata Koirala for withdrawing from prime minister’s delegation to India in the last hour.
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Speakers during the central committee meeting of the party on Wednesday asked the party leadership to furnish reasons behind her refusal to accompany the delegation violating diplomatic norms. The CC members also rubbished reports that Koirala refrained from joining the delegation protesting Prime Minister’s denial to promote her as Deputy Prime Minister. “The party has not demanded DPM portfolio in the current cabinet and the demand for promotion was her personal interest,” party spokesperson Arjun Narsingh KC told reporters after the meeting. Some also demanded immediate withdrawal of Koirala from the government for working against the party mandate. Source: www.nepalnews.com Date: August 19, 2009
FM violated diplomatic protocol:DPM DPM Bijaya Kumar Gachhadar Wednesday described the foreign minister’s act of cancelling her participation in the Prime Minister’s India trip as a violation of diplomatic protocol. Speaking with the media at the airport here, he also said the cancellation of the trip, which occurred at the eleventh hour, would not make any difference to running of the coalition government. He however pleaded ignorance over any possibility of talks between the Prime Minister Madhav Kumar Nepal and NC president Girija Prasad Koirala on the foreign minister’s promotion to the post of deputy prime minister.Gachhadar also made it clear that no agreement was earlier reached with his party on appointment of another deputy prime minister. Foreign Minister Sujata Koirala on Tuesday cancelled her trip hours before departure citing health reasons. However, Foreign Minister Sujata Koirala is learnt to have pulled out of the trip to express her dissatisfaction over not appointing deputy prime minister. Sources also claim that NC president GP Koirala had asked PM Nepal to appoint her deputy prime minister prior to setting out on his India trip. Foreign Minister Sujata Koirala is the daughter of NC president Girija Prasad Koirala Source: The Himalayan Times Date: 08/20/2009
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Prez concerned over SC order President Dr Ram Baran Yadav has expressed concern over the Supreme Court order regarding Vice-President Paramananda Jha’s oath controversy. He made his displeasure apparent in a letter, which was submitted to the apex court today. “The President has expressed dissatisfaction over the court order since it didn’t respect the privileges and immunities enjoyed by the Head of the State in a democratic set up,” Dr Surya Dhungel, legal advisor to the President, told The Himalayan Times. On August 12, the Supreme Court had directed the President, Vice-President and Prime Minister’s Office and Cabinet to furnish the progress on the oath row that had erupted last year. The SC had issued an order on July 24, asking Jha to take fresh oath in Nepali. “Our plea is that the Head of the State ought to enjoy immunity. We’ll make this request to the apex court soon,” said Dhungel.According to him, the order violates international norms and practices accorded to any Head of State. The Office of the President, in its letter, stated today that the “language” used in the order is not in keeping with Article 36(A) (2) of the Interim Constitution of Nepal, 2007, which proclaims that the President enjoys the exalted position of the Head of the State. Baman Prasad Neupane, secretary at the Office of the President, however, explained that the President was ready to make arrangements for a fresh oath-taking ceremony for Jha, if the latter is willing to do so. “The Supreme Court order itself has clearly mentioned that taking the oath depends on the wish of the person concerned. The President is ready to perform the job, relating to administering the oath, if the person is ready to do so, as per the Interim Constitution of Nepal, 2007,” reads the letter submitted by the Office of the President to the SC. The Vice-President also informed the apex court that he would “do something” after the President makes arrangement about the fresh oath-taking programme. A sarcastic Jha questioned the SC about the choice of the languages as far as signing the text and taking the fresh oath is concerned. He also pointed out that the SC did not issue any order to the President to organise the oath-taking ceremony. The Prime Minister’s Office and the Cabinet gave a copy of the letter, which was addressed to the President, to the SC for its record. The letter urges the President to fix the date and programme for the fresh oath-taking ceremony in view of the SC’s order. Run-up to the impasse • • • •
The VP took oath in Hindi on July 23, 2008 SC annulled his oath on July 24, 2008 The VP challenged the SC verdict The SC sought explanation from the Prez, VP, govt on August 12
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• The PMO wrote to the Prez on August 17 to fix the date of the ceremony • The Prez accused the apex court for violating the Head of the State’s privileges • The VP said that the SC did not issue order to the Prez to organise the oath ceremony Source: The Himalayan Times Date: 08/20/2009
Nepal leader Matrika rejects RAW monetary offer: reports Matrika Yadav, the chairman of the Nepal Communist Party-Maoist restructured has refused recently to accept the strange gift provided by RAW Nepal Chief, Alok Joshi The Janadharana weekly dated August 20, 2009, claims that the Minister counselor and the RAW station-in-charge, Alok Joshi, had offered Mr. Yadav a packet full of Indian currency notes in a rectangular packet Joshi had offered the money- wrapped in paper bag, to Mr. Yadav’s wife, after they held talks. Yadav, while Joshi was also present, tore the packet and found out that the packet was full of real Indian currency notes. A pretty surprised Matrika Yadav told the Indian official that “If you wish to give her gift something, give her sarees and other ladies stuffs, I have no use of the money”. “You take it yourself, we have no use of this money”, Matrika added. Matrika, who was with his wife, rejected the India offer for arms and financial support, claims Janadharana quoting sources. God bless Matrika. Source: http://telegraphnepal.com
Maoists for forming front to fight anti-peace elements While Prime Minister Madhav Kumar Nepal is busy telling Indian leaders in New Delhi that despite his intention to include the Maoists in the government, he is yet to get their support, at home, the Unified CPN (Maoist) appears to be refusing to budge from its stance. UCPN (Maoist) Chairman Pushpa Kamal Dahal on Wednesday said the incumbent government will not succeed in taking the peace process to a logical conclusion, nor will it be able to write the constitution.
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"Paradoxically, the government that should have been working towards peace and constitution is trying to derail the peace process and thwart constitution writing," said Dahal at the inaugural convention of the United National People's Movement (UNPM). The UNPM was formed on Aug. 3 under the leadership of Maoist Vice-Chairman Baburam Bhattarai to lead the series of protests announced by the party earlier this month. "The government is unnecessarily prolonging the transitional phase," said Dahal, "We must form a comprehensive united front to tackle reactionary and regressive forces who are against the peace process and writing of the statute." The 'comprehensive united front' the Maoists aim to form, according to them, will incorporate all those who are in favour of 'civilian supremacy', national sovereignty, peace and constitution. "It is not be necessary to form the front only with those who believe in Maoist ideology. It can comprise all nationalists--especially from other parties--who want to see lasting peace and new constitution in the country," said Dahal expressing hope that such a 'front' led by the Maoists would garner support from different sections of society. The UNPM convention is mandated to define and devise the form and functioning of the 'front' with a 45-point declaration paper. "The front will, in fact, chart serious strategies to carry out our programmes in future to form a national unity government led by UCPN (Maoist)," said Dahal. Dahal said the 'front' would function as a tool to consolidate the people's movement to establish the Maoist-led government. Source: www.kantipuronline.com Date: August 19, 2009
POLICY: War Victims Rehabilitation Funds Available for Nepal WASHINGTON, Aug. 20 -- The U.S. Agency for International Development (Nepal USAID-Kathmandu) has one cooperative agreement opportunity for the implementation of a program that will improve the quality of services for war victims and those who have suffered from mobility-related injuries. The estimated total program funding available was cited as $1,200,000, although no specific amount for this award was indicated by the agency. This funding opportunity is open to any entity, such as state, county, city, township or special district governments; Native American tribal governments and organizations; independent school districts; public, state and private institutions of higher education; Historically Black Colleges and Universities; Tribally-Controlled Colleges and 10
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Universities; nonprofits; for-profits; small businesses; and eligible agencies of the federal government. A funding opportunity notice from the U.S. Agency for International Development (Nepal USAID-Kathmandu) states: The United States Agency for International Development in Nepal (USAID/Nepal) is seeking applications for a Cooperative Agreement from qualified organizations to implement a program entitled 'Strengthening Rehabilitation in District Environs (STRIDE).' USAID/Nepal's primary objective with the STRIDE project is to improve the quality of services for victims of war and others who have suffered mobility-related injuries and communitybased follow up for beneficiaries of the services." The funding opportunity number is RFA-367-09-000001 (CFDA 98.001). It was posted Aug. 17 with an application closing date of Sept. 18. Source: http://targetednews.com
India attempts to match Chinese influence in Nepal NEW DELHI: In a bid to support Nepal’s beleaguered peace process and check China’s growing influence, India has decided to pump in crores of rupees into the neighboring nation’s infrastructure. On the day Nepal’s Prime Minister Madhav Kumar Nepal started his five-day visit to India, the government at a high-level meeting took a decision to fund three large infrastructure projects, which will increase border connectivity and increase trade between the two countries. The government quickly pushed through funding for the projects, which include the Integrated Customs Posts project and road and rail projects, to show that India is serious in its efforts to help Nepal through the transitional period. With the development mantra in mind, the government, which is keen to upgrade the border infrastructure, will put in around Rs 200 crore to set up the first two state-ofthe-art integrated customs point along the border at Raxaul-Birganj and JogbaniBiratnagar. The decision to set up Integrated Check Posts along the border was taken some time back but will now see actual implementation on the ground. The idea is to set up the ICPs so that trade between the two countries becomes smoother, cutting down on current procedural delays at the border. After the first two sites are set up, the two countries will then look at setting up ICPs at Sunauli-Bhairahawa and NepalgunjNepalgunj points. Apart from the customs project, the government has also taken the plunge to fund the first phase of the Terai road project at a cost of around Rs 700 crore and set up two rail links worth Rs 700 crore. The Terai road project looks at upgrading around 1,500 km of roads in the Terai region with the first phase covering 657 km of road.
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Additionally India will also fund a Nepal Police Academy worth Rs 300 crore in what is a capacity building exercise. These infrastructure projects have been at the conceptual stage for the last couple of years but have not gotten off the ground for one reason or another. By funding road and rail projects worth crores, India hopes to start a new era of cooperation and send a strong message of support to Nepal and its government, which has been struggling to push forward the peace process in the face of Maoist opposition. Sources pointed out that India’s interest lies only in a stable Nepal. On Wednesday, Prime Minister Manmohan Singh held talks with Mr. Nepal and discussed the entire gamut of bilateral ties from economic cooperation to the status of the peace process. India’s current push for Nepal’s infrastructure also comes in the backdrop of China’s continuing efforts in Nepal. China is currently helping Nepal build a cross border road linking Nepal to the Tibetan Autonomous Area to improve trade and tourism. China is also a major donor and has put in vast amounts of money into Nepal in various sectors including hydropower, health and even information technology. Source: http://economictimes.indiatimes.com
Sudan embezzlement case under scanner The State Affairs Committee of the Legislature Parliament on Wednesday began an investigation into the embezzlement case related to the purchase of logistical supplies for the Formed Police Unit of Nepal Police stationed in Sudan. The meeting of the committee held in Singhadurbar on Wednesday afternoon has directed the Home Ministry to submit detailed documents, including bills of purchase, processes of procurement, reimbursements made by the UN mission and the memorandum signed before the mission was executed in Sept. 2008. The government had procured eight Armed Personal Carriers (APC) s for Rs. 240 million and other equipment worth Rs. 250 million for the Sudan mission. The committee's chairman, Ram Nath Dhakal, said the case has come under the scanner on the basis of media reports suggesting that corruption must have taken place--because the supplies that were purchased for the mission were of inferior quality. The procurements were made during the tenures of the then Home Minister Krishna Prasad Sitaula and Inspector General of Police Om Bikram Rana. Home Minister Bhim Rawal, who was grilled by the committee in its meeting on Wednesday, vowed to form a high-level committee to investigate the scam and take action against any found guilty. But the Home Ministry, he said, has not yet made appointments to the probe panel led by Tanka Paneru to look into the matter because the government wants to form a "powerful investigation body, considering the seriousness of the issue." 12
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Airing their views on Wednesday's meeting, lawmakers said the Sudan embezzlement case has weakened the country's reputation and called its integrity into question. They also said the government should severely punish those engaged in foul play, for risking the life of police personnel participating in the mission. "Those who are looting the funds meant for the police and army personnel participating in foreign mission are bugs," said Rastriya Janamorcha lawmaker Chhitra Bahadur K.C. "Those bugs should be punished and killed." The state's anti-graft body, the Commission for the Investigation of Abuse of Authority, has started investigating the matter, and the Inspector General of Police, Ramesh Chand Thakuri, on Wednesday pledged to support the parliamentary committee's probe. Source: www.kantipuronline.com Date: August 19, 2009
No breakthrough on trade treaty Nepal and India are yet to reach a breakthrough on a contentious issue of controlling unauthorized trade, which has reduced a possibility of signing an agreement to renew and update the Trade Treaty. The bilateral meetings at the prime ministers´ level also failed to make progress on the contentious issue of India´s demand that Nepal not be allowed to re-export third country goods through international agents while India enjoyed the same right. Briefing the media on the bilateral negotiations, Madan Bhattarai, spokesperson for the Foreign Ministry, said, "Some technical issues of the Trade Treaty are yet to be sorted out." When asked if that meant the possibility of signing the Trade Treaty was practically over, Bhattarai said, "I cannot say that since there are more meetings tomorrow." Though the draft of the Trade Treaty was earlier agreed at the secretary level, India raised demand for non-reciprocity on allowing re-export of third country goods through international agents spoiling the possibility of signing the treaty. If the two sides fail to sort out the issue by tomorrow, Nepal and India will have no treaty at hand to put ink on since the other two treaties on avoidance of taxation and investment protection have already been taken off the negotiating table. It´s also not clear if India will agree to immediately take up Bagmati Civilization Project as expected earlier. "India has agreed to study the project," said Bhattarai. Prime Minister Nepal had pinned in hopes on the project since Nepal had received positive signals on it. Even at the bilateral talks held on Wednesday, Prime Minister Nepal had requested India to fund the Bagmati Civilization Project and had tried to push it through arguing that it had a big sentimental value for the southern neighbor. 13
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Leading the Nepali team at the talks held at Hyderabad House on Wednesday evening, Prime Minister Nepal also requested India to expedite works on projects agreed between the two countries in the past. He raised concerns about the slow progress on many such projects, including the Hulaki Road and Link Road in Tanakpur. He also called for regular meetings and contacts between bilateral bodies to resolve outstanding issues and problems on the ground. Prime Minister Nepal also told the Indian delegation, headed by Indian Prime Minister Man Mohan Singh, that his government´s top priority was to conclude the peace process and to write a new constitution on time. During the talks, the Indian side also said that it would be better if the two countries signed the Extradition Treaty, the Mutual Legal Assistance Treaty to Control Criminal Activities and Border Strip Maps. However, Indian Prime Minister Singh also said that if Nepal needed more time to reach consensus on these issues his government was ready to wait for the "pace" and "comfort" that Nepal desired. Prime Minister Nepal busied himself in high-profile meetings with Indian leaders throughout the day. Besides the Indian Prime Minister, he met President of Indian National Congress Sonia Gandhi, President of India Pratibha Patil, Vice President Mohammad Hamid Ansari, and Foreign Minister SM Krishna, among others. Source: www.myrepublica.com Date: 08/20/2009 UN for more humanitarian aid Nepal requires a significant humanitarian assistance due to a combination of factors: drought, ongoing civil and political tension, chronic underlying vulnerabilities, natural disaster and by global economic, fuel and food crises of the recent times, says a United Nation’s report. The mid-year review report publicised by the UN on the eve of the First World Humanitarian Day (August 19) further states that the drought and economic damage inflicted by strikes, global financial crisis and skyrocketing fuel and food prices since 2008 have plunged the country into a “silent emergency”. “In Nepal, high risk and vulnerability to hazards such as earthquakes, floods and landslides aids to the humanitarian challenge and calls for immediate action to alleviate the impact of sudden- onset emergencies,” the report adds. As of May 2009, 3.4 million people were highly food insecure and in dire need of assistance. The UN has pointed the 11 sectors which need to get high priority in Nepal are health, nutrition, food security, water sanitation and hygiene, education, protection, shelter, camp coordination and camp management, refugees, disaster preparedness and coordination. According to the UN report, 500,000 people, mainly in the far and mid-western regions, require immediate food assistance up to the next harvest in October/November. Climate change is also expected to dramatically affect patterns of
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the migration and population movement. Many families are expected to be displaced by the prolonged droughts and repeated floods or storms. The UN General Assembly has chosen to dedicate August 19 to honour all humanitarian workers those serving in various parts of the globe. Source: The Himalayan Times Date: 08/20/2009
BUSINESS & ECONOMY:
Overseas jobs slump by 21 percent The number of Nepali workers leaving for overseas jobs slumped by a whopping 21.34 percent in the first month of the current fiscal year 2009/10 compared to the same period of the last fiscal year. According to the Department of Foreign Employment (DoFE), a total of 15,541 workers departed for about two dozen destinations during the period mid-July to midAugust. The department's statistics show Saudi Arabia, Malaysia, Qatar, the United Arab Emirates and Lebanon to be the top five countries to absorb Nepali workers during the period. Saudi Arabia topped the list of recipient countries taking in 6,213 individuals followed by Malaysia with 4,055. Similarly, Qatar took in 3,083 individuals, the United Arab Emirates 1,381 and Lebanon 432. The DoFE's data for the first month shows that foreign employment is still feeling the heat of the global economic recession. Except for Saudi Arabia, departures to major foreign employment destinations like Malaysia, Qatar and the United Arab Emirates have declined. The number of Nepali migrant workers going to Saudi Arabia increased by a whopping 70.26 percent in the first month of the current fiscal year. However, Qatar received 56.17 percent less Nepali workers. Departures to Malaysia, the largest destination for Nepali workers, also declined by 18.50 percent. Saudi Arabia, Malaysia, Qatar and the United Arab Emirates had received 3,649, 4,976, 7,034 and 3,049 workers respectively during the same month of the fiscal year 2008/09. Departures to Lebanon have increased by 157.14 percent to 432 during the period compared to 168 last year. Libya, one of the latest foreign employment destinations, took in 112 Nepali workers.
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However, the number of jobseekers going to foreign lands through personal contact surged by 13.85 percent to 3,805 individuals. Departures last year numbered 3,342. Top Six Foreign Employment Destinations Country First month 2009/10 First month 2008/09 Saudi Arabia 6213 3649 Malaysia 4055 4976 Qatar 3083 7034 U.A.E. 1381 3049 Lebanon 432 168 Bahrain 174 559 Source: www.kantipuronline.com Date: August 19, 2009
No sophisticated cars, boohoo Import of expensive and sophisticated cars produced in third countries has been completely occluded for one month. The import was halted when the finance ministry made the custom evaluation of cars equal to that of the vehicles imported for diplomatic agencies. Following a debate over the custom evaluation of the cars, the purchasers have not imported expensive cars made in third world countries since one month ago. Nepal Automobiles Association has protested when the finance ministry fixed price of the cars brought for individual and business purposes as equal as the cars brought for diplomatic purposes. Some 100 imported vehicles have been garaged in Birgunj custom office premises. The finance ministry, basing upon its study that expensive cars have been imported on cheap bills, decided to hike the price. Car suppliers have claimed that the price of the vehicles would be hiked from $1000 to $5000 after the decision of the finance ministry. The cars — Pikanto of Kiya Motors, Spontej, Riyo, Getz of Hyundai Motors, Ascent, Tuxon, Corolla, Yaris, Civic, City, Jazz Brand among others — are counted in the numbers of expensive ones. According to Birgunj Customs Office chief Kebal Prasad Bhandary, the custom price of the vehicles was fixed after a study of the market price and the price of vehicles brought for diplomatic agencies. The customs office has been taking 210 percent tax including various taxes for the cars imported for individual purpose. Acting secretary of Nepal Automobiles Dealers’ Association (NADA) Surendra Pradhan said they imported the vehicles by removing the parts and instruments from the vehicles so as to set them up for Nepal.
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The vehicle importers said that the government should keep in mind the fact that many workers have got employment while fixing the removed parts in Nepal. The Birgunj custom office, in 2008-09, had imported 2250 vehicles worth Rs 1, 459,628,000 while it collected Rs 2,569,337,000 revenue. Source: The Himalayan Times Date: 08/20/2009
No drop in Vegetable prices soon: Traders Potato traders and farmers have said that the price of the king of vegetables, which has been rising continuously for the past five months due to reduced production, does not look like coming down anytime soon. The average wholesale price of red potatoes soared by 154.27 percent to Rs. 36 per kg during the last five months. They cost Rs. 12 per kg during the period mid-February to mid-March. Likewise, white potatoes also shot up by 145 percent to Rs. 24 per kg from Rs. 8 per kg five months ago. "The retail price of red potatoes will touch Rs. 100 per dharni (2.4 kg) within a few days as we are facing a shortage in the market," said Ujjol Karki, a wholesaler at the Kalimati vegetable market. Currently, red potatoes go for Rs. 90 per dharni. Also a member of the Kalimati Fruits and Vegetable Market Development Board said that potato imports from India declined this year due to reduced output and rising prices. Potatoes grown in the Kathmandu Valley and adjoining districts are being shipped to the Tarai creating a shortage in the valley. Sankhu, Panchkhal, Panauti, Nala, Dhading, Palung, Mude and Trishuli are the major potato producers in the region. "Reduced production and lack of a cold store are the reasons behind the price rise," said Karki. "We don't have a cold store even here in Kalimati." During the last potato season, wholesalers in Kalimati sold potatoes for less than Rs. 10 per kg. "If we had a cold store, we would be able to store potatoes for up to six months and prices would not have increased this way," said Karki. He added that the government was always talking about rising prices but it had no clue about why they had risen or how to control them. Bishnu Prasad Dhakal, a potato farmer and trader who supplies his produce to Pokhara, Narayanghat, Kalaiya and Kathmandu from Palung, said that production had been hampered by prolonged drought and lack of irrigation. "But now potatoes are rotting in the fields because of too much rain," he added.
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He said that there was no chance of prices declining before the festive season and the new harvest which begins in mid-November. "As soon as the new harvest reaches the market, the price will come down automatically," he said. Wholesaler Karki claimed that Nepal was self-sufficient in potatoes and that they were also being exported to India during season. Average wholesale price of potato in per KG Months Red Potato White Potato Mid-Feb to Mid-March Rs. 15.24 Rs. 13.62 Mid-March to Mid-April Rs. 15.85 Rs. 13.65 Mid-April to Mid-June Rs. 23.70 Rs. 19.56 Mid-June to Mid-July Rs. 26.92 Rs. 21.93 Mid-July to Mid-August Rs. 30.36 Rs. 24.13 Source: www.kantipuronline.com Date: August 19, 2009
DDC, private dairies delay hike in milk price Though the Ministry of Agriculture and Cooperatives has given the nod to increase the price of milk, dairy industries are shying away from implementing the price hike. Responding to demands of farmers and recommendations of a study committee, the MoAC had given consent to dairy industires to raise the price of milk three days ago. The MoAC had issued a circular to the Dairy Development Board (DDB) - the daily regulator - and Dairy Development Corporation (DDC) - the state-owned dairy producer - to revise the milk price taking into account the cost of production of milk. However, the DDC and the private dairies are hesitating to raise prices because of tough competition in the market. "The DDC isn´t ready to comply with the MoAC direction. How can we (private dairies) alone raise the price?" wondered Ram Kumar Khadka, president of Private Dairy Association. He also sought the DDC´s cooperation to implement the ministry´s decision. Khadka also said unilateral increase in price could be detrimental to the market share of private dairy industries. Currently, DDC enjoys 60 percent share of Nepal´s dairy market. “Private dairies want the DDC to take lead in raising milk price. But we, as a public enterprise, have to consider the interests of both consumers and farmers before taking such decision,” Ajab Lal Yadav, general manager of the DDC, said. “However, we
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are ready to revise the price, if private dairies do so first." Yadav also said private dairies were trying to exercise cartel by compelling it to hike the price as per their desire. Meanwhile, dairy farmers organised a sit-in at the office of DDC on Wednesday, demanding immediate hike in the price of milk. Source: www.myrepublica.com Date: 08/20/2009
Handmade paper home Lokta Paper is taking its old place after 11 years.Come 2010 and you’ll have a Nepali citizenship card from Nepali handmade paper like in the old days. But this time around, it will be a card unlike the earlier book format. Nepal Bureau of Standards and Metrology (NBSM) has approved the minimum standards of Nepali handmade paper presented by Nepal Hand Made Paper Association (HANDPASS) for Nepali citizenship cards. The paper testing laboratory report has been approved both by HANDPASS and NBSM, and the finalised report is ready to be forwarded to the Home Ministry. According to Kiran Dangol, former secretary of HANDPASS, NBSM will — in a few days — forward the document to the Home Ministry mentioning the minimum standards required for the Lokta paper that is to be used for Nepali citizenship cards. The ministry will ask for quotation after the approval of the standards. Nepali Lokta paper was on the verge of extinction from the local level with a cabinet decision on March 9 approving the use of Nepali hand-made paper in government legal correspondence. Lokta paper in the early days used to be compulsory for government legal correspondence, which became extinct from the government offices. After 1998 AD, the property ownership certificate prepared by the Ministry of Land Reforms and certificate of citizenship i.e. passport made by the Home Ministry used to be prepared from hand-made paper of Nepal, were replaced by Ivory paper. For 11 years, the paper for these purposes was imported from foreign countries. Instead of handmade paper, white paper was used for preparation of property ownership certificate and Ivory paper for passport. Handmade paper is popular all over the world because of its natural attractiveness, insect resistance, toughness and other special qualities. According to HANDPASS, Ivory paper worth Rs 40,000 to Rs 50,000 was imported annually by the government. In 2008, the total export of Nepali Lokta paper was more than Rs 300 million directly and about Rs 200 million indirectly through tourists coming to Nepal.The present fiscal year budget has also given emphasis on promotiong export through the encouragement of exportable products like handmade
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paper, tea, coffee, cardamom, lentils, cut-flowers, leather, ginger, scented oil, wooden handicrafts, honey, oranges and green vegetables. The Federation of Handicrafts Association of Nepal (FHAN) data reveals that with total contribution of nine per cent in total handicraft products exported in the fiscal year 2008-09, handmade paper products export increased by 12 per cent compared to fiscal year 2007-08. In year 2008-09, total handmade paper exported worth was Rs 264.55 million, which was Rs 236.647 million in 2007-08. Source: The Himalayan Times Date: 08/20/2009 Future of jungle resorts discussed Chitwan-based entrepreneurs, political parties and stakeholders associated with wildlife conservation have asked the government to make the final decision on the closure of the seven jungle resorts inside Chitwan National Park only after studying their negative and positive outputs. Most of the stakeholders stressed the need to keep the hotels open till Nepal Tourism Year 2011. They have presented the suggestion to the sub-committee formed by the Public Accounts Committee (PAC) to study the dispute arising from their closure. Representatives of the seven resorts and their employees have demanded that the resorts should be allowed to operate as before. The committee started its work on Tuesday and met with representatives of the District Chamber of Commerce and Industry of Chitwan and Ratnanagar. During the meeting, the representatives said that the government should not remove the resorts without conducting a study about their impact. They said that the resorts had been set up with huge investments and that the national benefit should be taken into account. "The resorts should be allowed to stay open till 2011," said Mitra Raj Dawadi, president of the Chitwan Chamber of Commerce and Industry. "The government should also understand the problems of the investors." Similarly, Abinash, district deputy in charge of the UCPN (Maoist), said that the safari resorts should be removed because Chitwan National Park was listed as a World Heritage Site. He added that all the political parties had agreed that they should be shut down. Nepali Congress district secretary Devendra Gurung said that the government should make public the negative and positive impacts of the resorts. The committee also met with hotel operators of Sauraha, Chitwan. They have requested the government to remove the resorts from the park.
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"Every tourist is equal," said Hari Bhakta Ghimire, president of the Regional Hotel Association. "The hotels located outside the park are enough to provide accommodation and service to the visitors." Source: www.kantipuronline.com Date: August 19, 2009
Hoteliers demand tax exemption Biratnagar, Aug 19 - The Hotel and Beverage Association has demanded that hotel and beverage businesses based outside the Kathmandu Valley should be exempted from income tax and excise duty. Hotel and beverage entrepreneurs of Koshi who gathered in Biratnagar presented a memorandum to this effect to the Inland Revenue Office, Biratnagar on Tuesday. The Eastern Regional Hotel Entrepreneurs Association expressed its support to the demands put forth by the beverage entrepreneurs who have been waging an agitation since July 16 calling for the scrapping of excise duty. The government had increased the excise duty. The entrepreneurs have demanded that the government should provide 50 percent reprieve on income tax and excise duty, scrap the increment in income tax in the budget, make house owners pay the tax on house rent and guarantee security to the entrepreneurs against extortion by armed groups. The entrepreneurs have also constituted a struggle committee for waging an agitation to press for the fulfillment of their demands. Source: www.kantipuronline.com Date: August 19, 2009
MARKET:
NEPSE slips 0.95pt The Nepal Stock Exchange (NEPSE) Wednesday lost 0.95 point on the trading floor. The sensitive index also decreased by 1.5 points. A majority of the sub-indices on NEPSE saw a decline on Wednesday. The development bank sector lost the most by shedding 8.98 points followed by the banking, insurance and finance sectors which went down by 3.82 points, 1.4 points and 0.91 point respectively. The share market witnessed a total turnover of Rs. 123.55 million with 218,118 shares being traded. Shares of 60 companies changed hands on NEPSE. 21
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Among the 22 commercial banks listed on NEPSE, Everest Bank convertible preference posted the biggest growth with its stock rising by 60 points while Nabil Bank lost the most on the trading floor by shedding 49 points. Similarly, among the 12 development banks whose shares were traded on NEPSE on Wednesday, Triveni Bikas Bank witnessed the highest increase of 28 points while Sanima Bikas Bank dropped 30 points. Among the 22 finance companies on NEPSE, United Finance was the highest gainer with an increase of 44 points in its share price. Pokhara Finance lost 36 points. The top five winners on NEPSE were Everest Bank convertible preference with a 6.67 percent rise in its stock price followed by Citizen Bank, United Finance Company, Triveni Bikas Bank and the Bank of Asia Nepal. Similarly, the top five losers on Wednesday were Pokhara Finance which fell by 7.39 percent followed by Standard Finance, Sanima Bikas Bank, Clean Energy Development Bank and Lumbini Bank. Butwal Power Company topped the chart in terms of turnover with Rs. 20.26 million. Source: www.kantipuronline.com Date: August 19, 2009
GENERAL: Seized land yet to be returned TIKAPUR, Aug 19 - Supporters of the UCPN (Maoist) are yet to return to the rightful owners the land and houses they seized in Kailali district during the decade-long insurgency, despite the Maoist leadership's oft-repeated commitment to the handover of the captured assets. Statistics of the District Administration Office, Kailali, show that Maoist activists captured land and houses of 430 individuals in the district during the insurgency. Poor people and families of Maoist fighters killed during the insurgency have been making use of the assets. The rightful owners say they have not been able to get back their land and houses because of district-level Maoist leaders. An activist of the UCPN (Maoist) claims cadres are not defying the leadership's directives. "Poor families and kin of martyrs have been using the land and houses. The party leadership must offer the present occupants an alternative." Source: www.kantipuronline.com Date: August 19, 2009
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New UN study examines hunger severity within Nepal 19 August 2009 – Hunger rates are most severe in the western regions of Nepal, which already ranks near the bottom of the global hunger index, according to a new report by the United Nations World Food Programme (WFP), which is examining food insecurity levels within the South Asian nation. According to the global hunger index (GHI) developed by the non-governmental organization (NGO) known as the International Food Policy Research Institute (IFPRI), Nepal ties with Laos for 57th out of 88 countries, with a score of 20.6. Countries with levels under five, such as those in Western Europe, are considered to have low levels of hunger and are not included in the rankings. The new WFP study found that levels were close to or topped 30 in the Far- and MidWestern Hill and Mountain regions of Nepal, “pointing to an extremely alarming situation.” In particular, the score of 40.17 for the Mid-Western Mountain area is only slightly better than the 42.7 level for the Democratic Republic of the Congo (DRC), which has the worst GHI in the world. Most of the country's 15 sub-regions fall within the alarming category, and none are categorized as either moderate or low-hunger. “This underscores the seriousness of the food security situation in Nepal,” WFP said. The assessment pointed to undernourishment, high percentages of underweight children, poverty, economic activity, agricultural productivity and access to health services driving hunger scores down. While boosting economic growth is urgently needed, that alone is not enough, WFP warned. “There is an urgent need to invest solidly in direct nutrition interventions to address the huge issue of child malnutrition,” the agency stressed. “This includes investing in the health sector, increasing nutritional awareness, improving behavioral practices such as hand washing, breast feeding and water treatment, and providing access to proper sanitation facilities to rural populations.” Source: http://www.un.org
Five secretaries in dock over 'dead' river Five government secretaries are appearing in person before the Supreme Court on Thursday, with details of their plan on cleaning, restoring and conserving the polluted Bagmati River. Their move follows a Supreme Court order in a contempt of court case that accuses the government secretaries of defying the court´s one-year-old order to clean and conserve the “dead” river.
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Secretaries Dr Trilochan Uprety, Dr Uday Raj Sharma, Krishna Gyawali, Deep Basnet and Niranjan Baral are appearing before the court to defend themselves in the case. Last year, the apex court, taking up a public interest litigation filed by Pro Public, had ordered the government to begin works on clearing, conserving and restoring Bagmati River. The NGO then moved the court with a contempt of court application as the court order was not implemented. According to Under Secretary Keshav Bastola at the Office of the Prime Minister and Council of Ministers (PMO), this is the second time that secretaries are appearing in person before the court over the same case. The apex court had then asked them to make action plan and present it before the court for the second time. “We will present the Bagmati Action Plan (BAP) and our preparations to clean, restore and conserve the river to the court tomorrow,� Secretary at the PMO Uprety told myrepublica.com. He said plan aims at restoring and conserving the Bagmati River and its tributaries in an integrated and coordinated manner. BAP covers the Bagmati river system form Shivapuri hill to Katuwal Daha Source: www.myrepublica.com Date 08/20/2009
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