R&D Economic Research & Business Development
Date: August 30, 2009
Highlights
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The Constitutional Committee, tasked with presenting a new Constitution for Nepal by May 2010, has finally got a new chairman — Nilamber Acharya of the Nepali Congress.
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With the defeat of the Unified Maoists’ candidate in the election for the post of the chairman of the constitution drafting committee, the Maoists have begun suspecting the ill-motive of the ruling coalition parties to alienate the Maoists in the entire constitution drafting process.
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A day after the UML chairman, Jhal Nath Khanal hinted action against influential UML leader K. P. Sharma Oli, addressing a press gathering in Nepalgunj of Banke District Mr. Oli however, suggested action against the party Chairman Khanal.
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Last year’s photograph takes pride of place in Paramananda Jha’s drawing room. It has Jha dressed in dhoti-kurta and a jacket, being sworn in as the Nepalese republic’s first vice-president. But that momentous occasion captured on camera 13 months ago is a grim reminder of 65-year-old Jha’s predicament today.
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The cabinet on Sunday decided to hold the ceremony of oath of office and secrecy in Nepali language for Parmananda Jha as vice president at 4 p.m., according to Minister for Information Shankar Pokharel.
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The Madhesh-based parties represented in the Constituent Assembly (CA) formed a Joint Struggle Committee (JSC) on Friday to protest the Supreme Court decision on Vice President's oath taking.
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After Deputy Prime-Minister of the country, Mr. Bijaya Kumar Gacchedhar categorically blamed the political parties of Nepal for the failure of the 1990 Constitution, now the Vice President of the Unified Maoists Party, Dr. Babu Ram Bhattarai claims that bids were afoot to revive the 1990 Constitution that provided constitutional status to the now sidelined 240 Years old Monarchy.
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Nepal’s Deputy Prime Minister Bijaya Kumar Gacchedhar, currently leading the Madhesi Janaadhikar Forum-Lokatantrik, said in a determined voice that he will give up the post of the deputy prime minister of the country if the Unified CPN-Maoists were inducted in the incumbent United Marxist Leninists’ Party led government.
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India has provided a grant assistance of Rs 61.4 million for infrastructure development projects in three districts in Nepal.
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The Nepalese government should investigate the alleged human rights violations by its army during the decade-long Maoist insurgency in the country to make sure that the perpetrators are held accountable, a top UN official has said.
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Migrant labourers working in Israel contribute $2.52 billion (6.66 billion Israeli shekels) to the country’s gross domestic production (GDP), Ha’aretz news agency reported on Friday. Israel’s GPD was $163.96 billion in 2008.
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For several months, the future of those sleek Jaguar saloons and robust allterrain Land Rovers, symbols of a once-great British motor industry, seemed to hang in the balance as Tata, parent of Jaguar Land Rover (JLR), and government officials wrangled over the knotty issue of financial support.
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Honda Hornet CB600F 2009 has made its way into Nepal. The latest sensation from the family of Honda has been kept on display for the public by authorised distributors of Honda cars and motorcycles, Syakar Company Ltd, at the NADA Auto Show.
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Jobholders with an annual income of up to Rs. 160,000 have to pay a 1 percent social security tax, whereas traders have been exempted from it.
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The government has stated in the budget announcement of the current fiscal year that it would impose a 1 percent tax for social security for both government and private sector employees.
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Nepal is considering lifting a ban on the recruitment of housemaids in the Middle East, said Mohammad Aftab Alam, the Nepalese Minister of Labour and Transport Management.
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The Nepal Stock Exchange (NEPSE) index dropped down by 20.68 points last week. The index declined to 681.54 points in the final day of trading on Thursday from 702.22 points in the first day of trading on Sunday. The downfall in the commercial banks' index was caused decline in the overall index.
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The declaration of dividends — cash and shares — has made the shares of Nabil Bank, Standard Chartered Bank Nepal, Nepal Investment Bank, Citizens Bank International and Bank of Kathmandu hotcakes in the secondary market this week.
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The 16th SAARC Summit is scheduled to be held in the Bhutanese capital Thimphu from 28-29 April 2010. The Maldives, which was supposed to hold the Summit in 2009, expressed inability to organise the event citing poor economic condition.
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India, that is terribly annoyed with acts of alleged boarder encroachment by China in Askai Chin, is assertively getting involved in occupying lands of another northern neighbor, Nepal. Over 100 huts have already been
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constructed at Korobari VDC, the southern belt of Jhapa adjoining India, by the Indian illegal settlers since last three days. •
The Indian citizens including the locals of Nawalparasi district shut down Nepal-India border on Friday, protesting against the excesses of the Indian Seema Surakshya Bal (SSB), the border security force of India.
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An underground armed outfit has claimed responsibility for the bombing on Friday evening near Nepali Vice President Paramananda Jha's residence.
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Millions of people in Nepal face severe food shortages because global climate change has disrupted weather patterns and slashed crop yields in the Himalayan nation, an international aid agency warned Friday.
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An Iraqi journalist jailed after hurling his shoes at former President George W. Bush will be released next month after his sentence was reduced for good behavior, his lawyer said Saturday. Muntadhar al-Zeidi's act during Bush's last visit to Iraq as president turned the 30-year-old reporter into a folk hero across the Arab world amid anger over the 2003 invasion.
POLITICS: Nepali Congress gets Constitutional Committee chair The Constitutional Committee, tasked with presenting a new Constitution for Nepal by May 2010, has finally got a new chairman — Nilamber Acharya of the Nepali Congress. Mr. Acharya was elected with 29 votes from the 50 voters of the committee; his only competitor, Narayankaji Shrestha of the Unified Communist Party of Nepal (Maoists), got 21 votes. The committee had been functioning without a chairman for three months after the former chairman, Madhav Kumar Nepal, was elected Prime Minister in May. Mr. Acharya was sworn in by the Constituent Assembly chairman Subash Chandra Nemwang. Talking to reporters, Mr. Acharya, who participated in the drafting of Nepal’s Constitution in 1990, said he would accelerate the working of the committee to draft the Constitution in time. Maoist leader Shrestha, on other hand, claimed his party not getting the chair of the committee would send a wrong message to the people. “It’s a move to sideline the Maoists,” he claimed. Source: beta.thehindu.com August 28, 2009
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After defeat Nepal Maoist see difficulty in constitution drafting With the defeat of the Unified Maoists’ candidate in the election for the post of the chairman of the constitution drafting committee, the Maoists have begun suspecting the ill-motive of the ruling coalition parties to alienate the Maoists in the entire constitution drafting process. “Election is the major constituent of a democratic process however, with the victory of the person who is against the federal system, and whose victory has come apparently as a move to distance the largest party in the Constituent Assembly, does hint that the drafting of the constitution will not be easy as is being given to understand,” said Narayan Kaji Shrestha, the defeated Unified Maoists candidate. The anger after embracing defeat is real. “We accept the election results but it is certain that as it has come as a design to alienate our party in a calculated manner, the constitution drafting process may have to face several obstacles”, said Mr. Shrestha. Mr. Shrestha was defeated by Nilambar Acharya, a former Soviet Union tilted Communist currently, the Nepali Congress nominated member of the Constituent Assembly. Source: www.telegraphnepal.com 2009-08-29
Nepal UML in Crisis: Oli threatens retaliation if penalized A day after the UML chairman, Jhal Nath Khanal hinted action against influential UML leader K. P. Sharma Oli, addressing a press gathering in Nepalgunj of Banke District Mr. Oli however, suggested action against the party Chairman Khanal. “I have made so much of sacrifices for the party…I was imprisoned for 14 years”, said Oli adding, “If any one tried to divided the party forwarding illogical reasons then we will not tolerate.” “A person occupying the highest post must exhibit restrained behavior”, said Oli adding, “I have never gone against the party discipline and will certainly retaliate if someone threatens action against me.” “I was the one who made Jhala Nath Khanal and Madhav Kumar Nepal the Communists”, Mr. Oli also claimed. http://www.telegraphnepal.com 2009-08-29
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No last word on Nepal's Hindi row KATHMANDU: Last year’s photograph takes pride of place in Paramananda Jha’s drawing room. It has Jha dressed in dhoti-kurta and a jacket, being sworn in as the Nepalese republic’s first vice-president. But that momentous occasion captured on camera 13 months ago is a grim reminder of 65-year-old Jha’s predicament today. The former Supreme Court judge is at the centre of a raging language row. Last week, Nepal’s Supreme Court ruled that Jha had violated the Constitution by taking his oath of office and secrecy in Hindi instead of Nepali. The Court gave him an ultimatum: take a fresh oath in Nepali or resign. On Friday, Jha filed two appeals, seeking a review of the Court decision. Nepal’s ruling parties have asked Jha to obey the Court’s directive, but he is adamant. “The court verdict reflects Nepal’s colonial attitude towards the Terai people,” he tells STOI. “It is not just an insult to Madhesis (people living in the Terai), but to all indigenous communities whose mother tongue is different from Nepali.”Jha links the order to Nepal’s very real bias against Hindi, which is perceived as an Indian language. “Every Nepali speaks Hindi; it’s spoken all over Nepal. In spite of that, it is regarded as an Indian language as people forget that Hindi is spoken on both sides of the border. In the Terai, even people whose mother tongues are Maithili or Bhojpuri or Avadhi lapse into Hindi when they are excited. If Hindi is an Indian language, then so is Nepali; after all, the Indian Constitution recognizes it as an official language of India.” The vice-president believes base politics is behind the row. “Three years ago, a case was filed against Army chief Gen Rookmangud Katawal, (on the charge that he had falsified his year of birth and should have retired before he became army chief). But the general retires next month, and the court has not dared to take up the matter as the ruling parties are backing Katawal. On the other hand, the party that nominated me as vice-president, the Madhesi Janadhikar Forum, weakened after a split in the party and the attacks against Madhesis increased.” He also alleges that the apex court judges are biased. “The chief justice (Min Bahadur Rayamajhi) was an old adversary when I was a judge,” he says. “He took this opportunity to settle personal scores. The verdict misinterprets the Constitution. The Constitution never said the oath has to be taken in Nepali; what it has laid down is the format. Besides the oath, I also signed an official acceptance letter that was written in Nepali. That still remains valid.” In the past, India had often stepped in to defuse rows between the Nepalese government and parties that espouse the Hindi cause. But Jha will have none of it. “It is my battle,” he says. “I am capable of fighting it. I don’t need anyone’s support.” Source: timesofindia.indiatimes.com Date: 30 August 2009
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Jha's oath at 4 p.m. today: Govt Jha to hold press meet at 1 p.m. The cabinet on Sunday decided to hold the ceremony of oath of office and secrecy in Nepali language for Parmananda Jha as vice president at 4 p.m., according to Minister for Information Shankar Pokharel. The cabinet requested Jha to take his oath in Nepali as ruled by the Supreme Court, Pokharel, who is also the cabinet spokesperson, told the mediapersons after the cabinet meeting at Singha Durbar. Pokharel said that since a previous decision of the cabinet had already decided to amend the relevant provision of oath-taking of constitutional figures in the interim constitution, the vice president should have no problem in taking his oath in Nepali. The cabinet had decided table an amendment bill to allow oath for top-level constitutional figures to take oath in any other national language if they so chose. Today is the last day of the deadline set by the Supreme Court for Jha to take his oath in Nepali, failing which he would lose his post as vice president. The apex had annulled his oath in Hindi, ruling it was against the provision set in the constitution. Meanwhile, our correspondent Kiran Chapagain reported that Jha is likely to hold a press conference at 1 p.m. Sunday. A source close to Jha said that the ´vice president´ was consulting with his lawyers and friends about his next move in the light of the cabinet´s decision to hold the oath-taking ceremony in Nepali at 4 p.m. Source: www.myrepublica.com Date: 2009-08-30 Madhesi parties announce fresh stir against SC SUNSARI, Aug 28 - The Madhesh-based parties represented in the Constituent Assembly (CA) formed a Joint Struggle Committee (JSC) on Friday to protest the Supreme Court decision on Vice President's oath taking. The joint meeting of the Madhesh based parties held at Inaruwa, the Sunsari headquarters, formed a 19-member JSC under the leadership of Madhesi Janadhikar Forum-Nepal (MJF-N)'s district chairman SN Mahato and announced a fresh stir. The struggle programme includes torch rally and general strike. The meeting of the Madhesh-based parties--MJF, Tarai –Madhesh Loktantrik Party, Sadbhawana Party and Sadbhawana –Ananadidevi –decided to go for strike against the SC ruling. Source: www.kantipuronline.com Date: 2009-08-28
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Conspiracy to revive Nepal 1990 Constitution: Dr. Bhattarai After Deputy Prime-Minister of the country, Mr. Bijaya Kumar Gacchedhar categorically blamed the political parties of Nepal for the failure of the 1990 Constitution, now the Vice President of the Unified Maoists Party, Dr. Babu Ram Bhattarai claims that bids were afoot to revive the 1990 Constitution that provided constitutional status to the now sidelined 240 Years old Monarchy. “How can we expect that those involved in the making of the 1990 Constitution could act well in the making of the new constitution for the country”, Dr. Bhattarai questioned. Dr. Bhatttarai’s remarks were aimed at the election of Mr. Nilambar Acharya as the Constitution Drafting Committee Head defeating the Maoists candidate Mr. Narayan Kaji Shrestha. Acharya was the member of the 1990 Constitution Drafting Committee. Dr. Bhattarai also claimed that conspiracies were on to make the Constituent Assembly a summary failure. Dr. Bhattarai acknowledged that roots of the now sidelined monarchy are present in each and every village of the country. He however, stressed that the timely drafting of the new constitution will uproot the remnants of monarchy from the country. Dr. Bhattarai while predicting future conflict said, “The reactionaries and the statusquoists preferred conflict as per the instructions from their foreign masters.” Dr. Bhattarai made these remarks at a program organized by the Human Rights’ Concern Forum in Kathmandu, Saturday August 29, 2009. http://telegraphnepal.com 2009-08-30
Gacchedhar threatens to quit if Maoists inducted in Nepal-Govt. Nepal’s Deputy Prime Minister Bijaya Kumar Gacchedhar, a former congressman currently leading the Madhesi Janaadhikar Forum-Lokatantrik, said in a determined voice that he will give up the post of the deputy prime minister of the country if the Unified CPN-Maoists were inducted in the incumbent United Marxist Leninists’ Party led government. Addressing a program in Kathmandu, August 29 2009, Gacchedhar sought the necessity of forming a national government to draft the new Nepal constitution on time.
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“Without the national government, Constitution as per the people's aspiration cannot be drafted on time however, I am ready to give up my cabinet post for this purpose if needed but wouldn’t accept the Maoists inclusion in the current cabinet”, he said. http://www.telegraphnepal.com 2009-08-29
POLICY: India provides Rs. 61.4m India has provided a grant assistance of Rs 61.4 million for infrastructure development projects in three districts in Nepal. According to a press release issued by the Indian Embassy on Friday, three separate Memoranda of Understanding (MoU) were signed for the grant assistance. Two MoUs were signed between the Embassy and the District Development Committees of Baitadi and Okhaldunga and the third one with Kathmandu Divisional Office of Department of Urban Development and Building Construction. A grant of Rs. 27.8 million will be given to Shree Seti Gaun Secondary School in Baitadi for construction of school and hostel buildings. Rs.13.2 million will go to Shree Himalaya Higher Secondary School, in Okhaldhunga. A grant of Rs.20.4 million will go to Nepal Srijanatmak Kala Guthi, Lalitpur. Source: www.kantipuronline.com Date: 2009-08-29
UN official for probe into human rights 'abuse' by Nepal army The Nepalese government should investigate the alleged human rights violations by its army during the decade-long Maoist insurgency in the country to make sure that the perpetrators are held accountable, a top UN official has said. The views of the UN were conveyed by the United Nations High Commissioner for Human Rights (OHCHR) Representative in Nepal, Richard Bennett, during his meeting with the acting Chief of Army Staff Chhatra Man Singh Gurung. Bennett expressed concerns about the lack of progress on accountability for serious human rights and international humanitarian law violations allegedly committed by the Nepalese Army during the conflict. "He stressed that, until an independent and impartial vetting mechanism is put into place, the promotion, extension, or nomination for UN service of individuals against whom there are credible allegations of involvement in human rights violations should be suspended," UN spokesperson, Michele Montas, said.
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Bennett also noted that recently personnel in positions of command responsibility during the time that violations were being committed at the barracks have been recommended for promotion or extension. He suggested that a comprehensive vetting of both Nepal Army personnel and Maoist cadres be conducted as part of the peace process "to avoid such controversies in the future," according to a statement issued by OHCHR. According to the UN, Gen Gurung said the Nepal Army would punish personnel proven guilty of human rights violations and would cooperate with "a properly constituted impartial and independent body," such as a commission of inquiry on disappearances, set up to investigate human rights violations which occurred during the conflict. http://www.hindustantimes.com 30 Aug 2009
BUSINESS & ECONOMY:
Nepal is getting short end of stick in IsraelKATHMANDU: Migrant labourers working in Israel contribute $2.52 billion (6.66 billion Israeli shekels) to the country’s gross domestic production (GDP), Ha’aretz news agency reported on Friday. Israel’s GPD was $163.96 billion in 2008. The average rate of expenditure is $6,800 a worker per annum. The average migrant worker spends $392 on board and $150 on clothes, insurance and other accessories a month. Labour rights related cost is $8 and communication cost is $16 per month. Medical insurance is expensive — $1.32 per day — in Israel, so over 90 per cent labour, working in unorganized sectors, are uninsured in Israel. Around 3,70,000 migrant labourers are working in agriculture, trade and service sectors, Ha’aretz reported citing the Ministry of Interior. Most of the labourers have two-year work permits, and only 90,000 have work visa for five years. Most of the five-year visa holders are Chinese and Filipino. Israel is a lucrative destination for Nepali women migrant workers. Around 12,000 Nepalis are believed to be working there and of whom 10,000 are women working as care-givers. According to Ha’aretz, Nepali workers spend $9,000 per head to reach Israel for taking job of $650 per month. The average expenditure of Israel-bound labourers is $6,200. Israeli companies spend $20,000 to fetch in the Chinese who get better salaries of $1,800 per month and visa period of five years. The Chinese are more concentrated in industry, trade and commerce sectors.
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Thais and Nepalis follow the trail to Israel but their income is remarkably different — Thais earn twice as much as Nepalis. Filipinos give $5,000 to reach Israel and earn $900 per month. Source: The Himalayan Times Date: 2009-08-29 Tata takes charge For several months, the future of those sleek Jaguar saloons and robust all-terrain Land Rovers, symbols of a once-great British motor industry, seemed to hang in the balance as Tata, parent of Jaguar Land Rover (JLR), and government officials wrangled over the knotty issue of financial support. Dangling before JLR and other carmakers and suppliers was the promise, made in January by Peter Mandelson, U.K.’s business secretary, of £2.3 billion of government loans and guarantees to aid investment in low-emission car projects. So far not a penny of the money has been spent, though separately £300 million has gone on a car scrappage scheme, which mainly helps makers of small, cheap cars. On Aug. 11, an exasperated Tata said it no longer needed government help. That ended over six months of sometimes bitter negotiation with the Shareholder Executive, a stateagency that looks after the government’s stakes in businesses. (Those include Northern Rock, a rescued mortgage bank, but not RBS and Lloyds Banking Group, which are handled by UK Financial Investments.) Tata, having bought JLR in June 2008 for $2.3 billion, found it was hit by the credit crunch, like all other car firms. Bank funding dried up and in November, JLR asked the government for guarantees to enhance its credit on commercial loans. Unlike the French and German governments, which were able to help carmakers via these firms’ financing arms, which are authorised banks, the British government did not have that option. The Shareholder Executive had to deal directly with JLR and first of all judge whether Tata, which owns businesses ranging from British steel mills and tea packers, to chemical and car plants in India, was really that needy of cash. Tata’s commitment to JLR seemed firm. But JLR had previously been a division of Ford Motor Company: it had no proper treasury function and was thinly capitalised. In protracted investigations, the Shareholder Executive, staffed mainly by hard-nosed former corporate financiers, began to demand radical changes to JLR’s financial structure, if they were to put taxpayers’ money at risk. That may have been reasonable, but it was not what Tata management wanted to hear. The European Investment Bank (EIB) was offering JLR a £340 million loan for the development of green technology, but required a government guarantee. On top of that JLR wanted around £400m of short-term funding. But the Shareholder Executive played hardball. The requested guarantee shrank to £175 million. Moreover, the agency wanted a premium of close to 10 percent and a counter-guarantee from a commercial bank so that, in the case of a payout, it had a chance to claw back the funds. And it wanted the power to remove JLR’s chairman if necessary.
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Tata found these terms unacceptable, even an affront, and finally wrote to say it was looking elsewhere: the EIB would get a guarantee from a consortium of banks instead, and JLR would raise bridge finance by pledging future cashflows. This new-found confidence was helped by the buoyancy of Tata’s car sales in India, and a modest recovery of orders at JLR. But there is some residual rancour and speculation that prompter action, at least on the EIB funding, would have accelerated JLR’s development of the LRX, a small, lowemission Land Rover, whose production is due to replace that of the Jaguar X-type at Halewood at the end of this year. On the other hand, it could be argued that abrasive dealings with the Shareholder Executive forced Tata to get to grips with JLR and bring in consultants KPMG to drive down costs, and Roland Berger of Germany to develop strategy. Ravi Kant, non-executive vice-chairman of Tata Motors, is now spending more time at JLR headquarters in Gaydon, Warwickshire. There are thoughts of more co-operation with Tata, perhaps involving shared production platforms. At the same time Tata does not appear that strapped for cash, having put £1.2 billion into JLR over the past 14 months. Source: www.kantipuronline.com Date: 2009-08-29 Honda Hornet has the sting! Honda Hornet CB600F 2009 has made its way into Nepal.The latest sensation from the family of Honda has been kept on display for the public by authorised distributors of Honda cars and motorcycles, Syakar Company Ltd, at the NADA Auto Show. It is the bike that started motorcycling’s ‘streetfighter’ phenomenon across the world. The Hornet CB600F was introduced to the Honda range in 1998. It’s aggressive ‘streetfighter’ looks were coupled with a tweaked CBR600F motor optimized for low to mid-range torque making it a real fun ride both around town and on winding Aroads, said the company. With one of the most impressive power-to-weight ratios in its class, not to mention its light and responsive handling and racer-look wheels and tyres, the ever-popular Hornet lets the whole world know it’s loaded for high-spirited thrills and the ultimate in riding fun. Hornet is known worldwide for its strong, sultry and seductive looks as well as its performance. This bike is slimmer, lighter, more powerful and easier to ride than any other bike in its class. The 2009 CB600F Hornet has been a leader in its segment in ride comfort, performance, controllability and ownership pleasure. Syakar Company Ltd — the authorized dealers of Honda Cars as well as Honda and Hero Honda Motorcycles in Nepal — currently distributes Honda Aviator and Dio, in scooters, and Unicorn, Shine, Stunner in motorcycles also. Source: The Himalayan Times Date: 2009-08-29
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Dual standards in social security tax Jobholders with an annual income of up to Rs. 160,000 have to pay a 1 percent social security tax, whereas traders have been exempted from it. The government has stated in the budget announcement of the current fiscal year that it would impose a 1 percent tax for social security for both government and private sector employees. "Those with their own businesses, however, have to pay the 1 percent social security tax if their annual income is more than Rs. 160,000," said Bishnu Nepal, deputy director general of the Inland Revenue Depart-ment (IRD). A salaried married couple, however, can pay social security tax up to their income at Rs. 200,000. Couples who earn up to Rs. 200,000 through their firms, however, do not come under the social security tax net. "But all earners whether they are salary holders or self-employed have to pay social security tax if their income crosses the first slab (Rs. 160,000 for individual and Rs. 200,000 for a couple) where income tax is imposed," said Nepal. When asked about different provisions for salary earners and persons earning through business, revenue secretary Krishna Hari Baskota said that providing exemption to certain segments of the population and bringing others under the tax net was a natural process in the government's tax policy. "A one day's salary of government employees had been deducted for the youth selfemployment programme last year too," he said. The government has been providing allowances for elderly people, widows, the disabled and marginalised communities which it wants to expand in the future. Likewise, those making an income of up to Rs. 150,000 and those doing business transactions of up to Rs. 1.5 million have to pay an accumulated tax of Rs. 5,000 for this year in metropolitan and sub-metropolitan cities. The tax is Rs. 2,500 in the municipalities and Rs. 1,500 in the villages. They are usually small businessmen and they make up 65 percent of the total number of taxpayers in the country, said the IRD. Although the first slab of income tax is imposed on those with incomes above Rs. 160,000, they have to pay tax on their income up to Rs. 150,000 or on their annual transactions of Rs. 1.5 million rupees. Officials said that imposition of taxes on a reduced amount of income was not aimed at compensating for the exemption in the social security tax but because small traders were allowed to run their businesses without keeping accounts. Source: www.kantipuronline.com Date: 2009-08-30
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Nepal plans to lift restrictions on recruitment of maids to Mideast By Sunita Menon, Staff Reporter Dubai: Nepal is considering lifting a ban on the recruitment of housemaids in the Middle East, said Mohammad Aftab Alam, the Nepalese Minister of Labour and Transport Management. Alam who is in Dubai for the third two-day Non-Resident Nepalese (NRN) conference, said this would being done to counter unregistered recruitment agencies who get Nepalese women to the Middle East via neighbouring countries India and Bangladesh. However, key Nepalese participants at the conference were of the opinion that prior to lifting the ban on housemaids, their government should ensure that Nepalese diplomatic missions in the Middle East were given the capacity to assist to Nepalese housemaids who approach the embassy in times of need. Nepal opened an embassy in the UAE in 2004. It was then headed by a Charge d'Affairs, but a year and a half ago, Arjun B. Thapa was appointed as the first ambassador to the UAE. There are 125,258 Nepalese citizens in the UAE. Of this number, 75,000 are in Dubai. "We are encountering certain problems because of the non-registered agencies in Nepal who target women from villages. "These women, when they end in a problem, approach our diplomatic missions. We are unable to track down the culprits who were behind recruiting them in illegal manner. "By lifting the ban we will be able to streamline the recruitment of housemaids to this part of the world and will also be able to bring their agents to book if we come across an irregularities," said Alam. The NRN conference will also serve as a curtain-raiser for the Global NRN conference that is scheduled to take place in October in Katmandu this year. Ambassador Thapa said its was difficult to check monitor the illegally recruited Nepalese housemaids in the Middle East. He said the embassy had received cases and had tried to solve them. "It is often the case [that] victims, when they approach us, do not even know who had exactly recruited and sent them here to the UAE. As a result we are unable to get to the culprits and refer them to the law," Ambassador Thapa said. He also added that Nepal facilitates orientation programmes for its nationals who travel overseas for employment.
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'[The] majority of Nepalese in the UAE are employed as construction workers, security guards and in the hospitality sector," said Thapa. A Nepalese citizen has to pay 70,000 Nepalese rupees (Dh3,352) to accredited recruitment agencies to register for an overseas employment. This amount is fixed by the government. http://www.gulfnews.com Date: August 29, 2009, 22:55
MARKET:
Share market goes down The Nepal Stock Exchange (NEPSE) index dropped down by 20.68 points last week. The index declined to 681.54 points in the final day of trading on Thursday from 702.22 points in the first day of trading on Sunday. There was a decline every day of the week. The downfall in the commercial banks' index was caused decline in the overall index. The group suffered a decline of 36.19 points followed by the group comprising finance companies with 7.43 points. The group comprising development banks also saw a decline of 3.59 points. However, the groups comprising insurance companies and hotels witnessed an upward trend in their indices with their respective indices going up by 5.55 and 2.90 points. The group categorized as others saw an increase of 1.17 points followed by hydropower sector with 0.09 points increase. The trading and manufacturing sectors saw no change in their indices the entire week. Shares of 88 companies were traded last week. A total of 688,700 units of shares worth Rs. 512.72 million were traded via 5820 transactions last week. The turnover amount however decre-ased by 19.46 percent compared to the amount the previous week. A total of 897,100 units of shares worth Rs. 636.57 million had been traded via 5,477 transactions in the previous week. 'A' class companies witnessed a turnover of Rs. 322.4 million which represents 62.89 percent of total turnover.The sensitive index that measures the performance of 'A' class companies however saw a decline of 7.72 points.
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Standard Chartered Bank, National Hydro-power Company and Citizens Bank International topped in terms of turnover amount, number of share traded and number of transactions made respectively. The 140,000 unit rights shares of Srijana Finance were listed in NEPSE last week. Weekly review Date
Total Turnover (Rs. in million) Nepse Index (in points)
27/08/09
93.99
681.54
26/08/09
114.77
682.31
25/08/09
86.36
678.87
24/08/09
89.93
693.34
23/08/09
127.65
702.22
Top Five in turnover Company
Turnover Amount
Standard Chartered
65.45
Nabil Bank
54.55
Citizens Bank International
41.80
Bank of Kathmandu
37.81
Nepal Investment Bank
35.62
Source: www.kantipuronline.com Date: 2009-08-30 Dividend declaration fuels transactions The declaration of dividends — cash and shares — has made the shares of Nabil Bank, Standard Chartered Bank Nepal, Nepal Investment Bank, Citizens Bank International and Bank of Kathmandu hotcakes in the secondary market this week. This week too, Standard Chartered Bank Nepal topped the chart in terms of transaction amount with Rs 65.45 million, though it declared its dividends two weeks ago. Nabil bank followed with Rs 54.55 million whereas Citizens’ Bank International (with Rs 41.80 million), Bank of Kathmandu (with Rs 37.81 million) and Nepal Investment Bank (with Rs 35.62 milllion) topped the chart in terms of transaction.
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However, these banks’ transactions could neither rescue Nepal Stock Exchange (Nepse) nor the commercial banks’ sub-group. Nepse plunged by 28.28 points to 681.54 points from Sunday morning’s opening of 709.82 points. Similarly, the commercial banks sub-group — one of the key market propellers — lost the whopping 45.86 points to 708.75 points from the Sunday morning’s opening of 754.61 points. Except, hotels sub-group, all the other sub-groups performed poorly this week. Development banks sub-group plunged by 12.92 points to 707.84 points from the opening 720.76 points. Finance companies sub-group dropped by 10.87 points to 662.79 points from the Sunday morning’s opening of 673.66 points, while the others sub-group also lost 4.70 points to 659.11 points from 663.81 points. Hydropower and insurance sub-groups lost only 2.83 points and 1.55 points to drop to 874.79 points and 640.26 points, respectively. However, 122-unit shares of Soaltee Hotels — that were traded on Thursday — pushed the hotels sub-group’s index up by 2.90 points to 366.85 points from Sunday morning’s 363.95 points. The rarely traded manufacturing and trading sub-groups did not observe any trading this week too. In terms of number of share units traded, National Hydropower Company topped the chart with 76,000-unit shares changing hands while in terms of number of transactions Citizens’ Bank International topped the chart with 1068 transactions. The transaction amount also decreased by 19.46 points to Rs 512.72 million this week against last week’s increase of 63.50 per cent. However, in the total transactions group-A companies’ contribution matched almost last week. This week, the group contributed 62.89 per cent, wheras it was 67.13 per cent last week. The 78-scrip sensitive index — a barometer of Group-A companies — lost 10.16 points to 180.21 points, though float index — calculated on the basis of real transactions — skidded down only by 2.63 points to 65.95 points from the Sunday morning’s opening of 68.58 points. Technical analysis of shares KATHMANDU: Though the domestic share market doesnot follow the internationally-accepted practice — neither fundamentals nor technical — and directed by hearsay and noise creators, Rabindra Bhattarai, a share analyst and lecturer at Shanker Dev Campus, has brought a book on Technical analysis of Shares in the market; Share ko Prabidhik Bishleshan (Technical analysis of shares). The book tries to explain some of the technical system of analysis like double top formation, double bottom formation, head and shoulder formation, rounding top, rounding bottom, triangle, rectangle, support and resistance, A-D ration and volumn analysis. The investors could take more benefit, if they read the book, though it could not be guaranteed in the domestic market. Bhattarai rightly quotes in the book — buyers buy in the expectation that the price will go higher and the sellers sell because they think the price will go down, its a huge psychological game that repeats daily at the floor.
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But the book might boost pyshological confidence of the investors with logical analysis. Source: The Himalayan Times Date: 2009-08-29
GENERAL: 16th SAARC summit in Thimphu The 16th SAARC Summit is scheduled to be held in the Bhutanese capital Thimphu from 28-29 April 2010. The Maldives, which was supposed to hold the Summit in 2009, expressed inability to organise the event citing poor economic condition. All the eight member states -- Nepal, India, Pakistan, Sri Lanka, Bangladesh, the Maldives, Afghanistan and Bhutan -- have confirmed their participation at the Summit. According to the SAARC Secretariat, a meeting of SAARC development fund is underway in Colombo, Sri Lanka. Bhutan is hosting the Summit for the first time since the regional body was established in 1985. "It will greatly enhance Bhutan's international image as a sovereign, independent and responsible country," Bhutanese Prime Minister Lyonchhoen Jigmi Y Thinley said recently. Source: www.kantipuronline.com Date: 2009-08-29 Indian grabs Nepal’s lands in Jhapa Latest reports of land encroachment by India in Eastern Nepal, Jhapa district to be precise, has once again slammed India's repetitive assurance of co-existence with its neighboring countries. India, that is terribly annoyed with acts of alleged boarder encroachment by China in Askai Chin, is assertively getting involved in occupying lands of another northern neighbor, Nepal. Over 100 huts have already been constructed at Korobari VDC, the southern belt of Jhapa adjoining India, by the Indian illegal settlers since last three days, reveals Rastriya Samcahar Samiti (RSS)- Nepal’s national news agency, 29 August, 2009.
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The RSS further reports, “Hundreds of illegal settlers from the South (India) have begun settling in the vacant lands belonging to Nepal, close to Jungey border pillar No. 134”. Confirming the land encroachment by India, Armed Police Base Camp located in Baigundhara said it will inform about the fresh Indian aggression to the concerned authorities in Nepal. RSS further writes, “Earlier too, Indians had encroached upon the lands in Korobari Eight years ago. Locals have warned agitation if the Indians continue to encroach upon the Nepali territory. http://www.telegraphnepal.com 2009-08-29 Nawalparasi locals protest Indian SSB torture NAWALPARASI, Aug 28 - The Indian citizens including the locals of Nawalparasi district shut down Nepal-India border on Friday, protesting against the excesses of the Indian Seema Surakshya Bal (SSB), the border security force of India. The agitating locals have enforced the strike at Triveni entry point and the bordering market areas in India. They launched protest saying the SSB have been misbehaving with the locals in the border area. The agitators have been put forward demands such as end to the SSB excesses and hassle-free passage of the goods to and from the border entry point. The locals have claimed that the Indian SSB deployed near the Gandak Barrage region have been misbehaving with the Nepalese and meting out unnecessary torture. Source: www.kantipuronline.com Date: 2009-08-28
Armed outfit claims responsibility for bombing near Nepali vice president's house KATHMANDU, Aug. 29 (Xinhua) -- An underground armed outfit has claimed responsibility for the bombing on Friday evening near Nepali Vice President Paramananda Jha's residence. A bomb went off close to Vice President Paramananda Jha's private residence in Nepali capital Kathmandu on Friday evening, injuring a local people, which took
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place about 50 meters from the Vice President's house at around 19:30 local time (1345GMT). Jha and his family members escaped unhurt, local newspaper The Himalayan Times reported Saturday. "Kirat Republican Workers' Party (KRWP), an underground armed outfit, has claimed responsibility for the blast," the report said. Leaflets, belonging to the outfit, were recovered from the site.Superintendent of Police Nawa Raj Silwal, the in-charge of Metropolitan Police Range, Hanumandhoka, said that the explosion was triggered by an improvised socket. The KRWP claims to fight for the Kirat people in eastern Nepal.Kirat, meaning people with lion nature, refers to the Kirati minorities including ethnic groups of Nepal like Limbu and Rai, etc. The KRWP once demanded to be recognized by the government as a political party and to include their demands in the constitution being drafted. Security has been beefed up in the area following the incident, and the police launched a manhunt for KRWP activists. This is the second time that bomb exploded near the Vice President's residence. Last August, a handmade bomb was exploded in his compound, injuring one soldier deputed for his security. Another underground outfit, National Liberation Army, had claimed responsibility for the blast that time. Jha is in the midst of controversies over his oath-taking in Hindi since last July. The Supreme Court of Nepal has required the Vice President to take an oath in Nepali language by the coming Sunday. http://news.xinhuanet.com 2009-08/29 Millions in Nepal facing hunger as climate changes KATMANDU, Nepal — Millions of people in Nepal face severe food shortages because global climate change has disrupted weather patterns and slashed crop yields in the Himalayan nation, an international aid agency warned Friday. Changing weather patterns have dramatically affected crop production in Nepal, leaving farmers unable to properly feed themselves and pushing them into debt, Oxfam International said in a report released in Katmandu. The British aid agency described the situation as "deeply worrying." "Communities told us crop production is roughly half that of previous years ... Last year many could only grow enough (food) for one month's consumption," said Oxfam's Wayne Gum, adding that less precipitation has been forecast this winter, which will make the situation worse.
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More extreme temperatures, drier winters and delays in summer monsoons have all compounded the situation, the report said. More than 3.4 million people in Nepal are estimated to require food assistance, and food stocks in farming communities will last only a few months, it warned. Oxfam said Nepal will likely suffer more frequent droughts because of climate change. River levels will decline due to the reduced rainfall and glacial retreat, making it harder to irrigate crops and provide water for livestock. "The predicted impacts of climate change will heighten existing vulnerabilities, inequalities and exposure to hazards," the report said. Oxfam recommended in its report that the government and international organizations intervene to ease food shortages in hill and mountain districts and provide assistance during the upcoming planting season. The government should encourage farmers to try new crop varieties and improve water management, and it should integrate climate change strategies into government planning. Ang Dawa, a member of a parliamentary committee tackling climate change, said its effects were already prevalent in Nepal, especially in the mountainous north. She said her village in the foothills of Mount Everest, the world's highest mountain, was covered in several feet (dozens of centimeters) of snow during the winter when she was a child, but now there is hardly any snow. http://www.google.com/hostednews
Iraqi shoe thrower to be released early BAGHDAD: An Iraqi journalist jailed after hurling his shoes at former President George W. Bush will be released next month after his sentence was reduced for good behavior, his lawyer said Saturday. Muntadhar al-Zeidi's act during Bush's last visit to Iraq as president turned the 30year-old reporter into a folk hero across the Arab world amid anger over the 2003 invasion. He has been in custody since the Dec. 14 outburst, which occurred as Bush was holding a joint news conference with Prime Minister Nouri al-Maliki. He was initially sentenced to three years after pleading not guilty to assaulting a foreign leader, then the court reduced it to one year because the journalist had no prior criminal history. Defense attorney Karim al-Shujairi said al-Zeidi will now be released on Sept. 14, three months early.
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"We have been informed officially about the court decision," al-Shujairi told The Associated Press in a telephone interview. "His release will be a victory for the free and honorable Iraqi media." Judicial spokesman Abdul-Sattar Bayrkdar said he had no immediate information about the release because it was a weekend. The bizarre act of defiance transformed the obscure reporter from a minor TV station into a national hero to many Iraqis fed up with the nearly six-year U.S. presence here. The case also drew worldwide attention and became a rallying cry throughout the Muslim world for critics who resent the U.S. invasion and occupation. Thousands demonstrated for al-Zeidi's release and hailed his gesture, which came in the waning days of the Bush administration. The incident also embarrassed al-Maliki, who was standing next to Bush at the time. Neither leader was injured, but Bush was forced to duck for cover as the journalist shouted in Arabic: "This is your farewell kiss, you dog! This is from the widows, the orphans and those who were killed in Iraq." Source: The Himalayan Times Date: 2009-08-29
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