R&D Economic Research & Business Development
Date: June 10, 2010
Highlights
Commercial banks which have invested millions of rupees in various factories have been selling their machinery at scrap value to recover their loans after the promoters fled. More than three dozen large scale industries along the SunsariMorang Industrial Corridor have been shut down in the last decade. In a controversial decision, Nepal Oil Corporation (NOC), which earlier asked Commission for Investigation of Abuse of Authority (CIAA) to recoup Rs 29.20 million from the staffs who stole oil from Amlekhgunj depot, has now recommended the anti-graft body to recover only half the amount from them. Five industries have recently been set up in Sunsari-Morang Industrial Corridor, one of the country‟s major production hubs. Not long ago, industries here were forced to shut shop due to sustained insecurity and labour problems. Of late, hotel owners in the Kathmandu valley are heaving a sigh of relief. A large number of bookings were cancelled during the week-long strike call given by Maoists. Now, the sector is witnessing a revival in the business, especially hotel reservation and bookings. About 10-15 per cent of reservations and booking that were cancelled during a weeklong general strike from May 2 have been reconfirmed. The Nepal Stock Exchange (NEPSE) on Wednesday registered a moderate gain of 3.84 points. The benchmark index settled at 486.60 points when the market closed for the day. A rise in the commercial bank and hydropower subindices pushed the NEPSE up. On Wednesday, the commercial bank and hydropower sub-indices saw gains of 5.94 points and 2.04 points respectively. The government is working on a price policy to control market prices and ensure easy availability of daily essentials at reasonable prices. Even though the Consumer Rights Protection Act 1998 has mentioned the possibility of formulating policies related to quality, price and supply of consumer goods and services, it has not been done despite the occurrence of irregularities like hoarding and unnatural price hikes. Entrepreneurs of Morang district are worried by a likely delay in the announcement of the budget for the fiscal year 2010/11 as the budget session has been postponed. Dinesh Golchha, president of the Chamber of Industries, Morang, said that manufacturers of iron rods, cement and bricks set their production and revenue targets on the basis of the budget. “We are confused by the uncertainty over the budget.” Confusion surrounding the term limit for the Nepali Congress (NC) party chief ended Wednesday after the ongoing Central Working Committee (CWC)
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meeting arrived at a consensus not to count the period served in that office when the party was divided into the NC and the Nepali Congress (Democratic). Constituent Assembly (CA) Chairman Subas Chandra Nembang said on Wednesday that the new constitution can be drafted within eight months if the political parties implement the three-point deal signed on May 28. Prime Minister Madhav Kumar Nepal will not resign unless there is a "guarantee" for the formation of a national consensus government and an agreement is made with the Maoists on key issues, a minister has said. Chief of the UN Mission in Nepal Karin Landgren on Wednesday met UCPN (Maoist) Vice Chairman Baburam Bhattarai and stressed the need for progress on the integration and rehabilitation of the Maoist combatants. That political stalemate continues at home has not stopped ministers from making errands to New Delhi on one pretext or another. Deputy Prime Minister Bijaya Kumar Gachhadar on Wednesday left for the Indian Capital for the „treatment of eyes‟. Mountain Helicopters (P) Ltd, which was established nine months ago operating a Europe-made AS350B2 helicopter, is preparing to add an air ambulance in its fleet. The US-based Human Rights Watch has urged Saudi Arabia and Kuwait to jointly investigate abuse and apparent trafficking of Nepali domestic workers who agree to work in Kuwait but are instead made to work in Saudi Arabia against their will and abandoned there. The Cabinet on Wednesday sacked Chief of Janak Shikshya Samagri Kendra Birendra Kumar Das. Earlier, the Cabinet suspended him after recommendation from the Commission for the Investigation of Abuse of Authority (CIAA) and appointed Ram Chandra Silwal as acting chief. Nepal Police has said that the facts regarding the abduction of Dr. Bhaktaman Shrestha would be made public in a few days. Dr. Shrestha, executive director of Bharatpur-based BP Koirala Memorial Cancer Hospital, was released on June 5 after 19 days of captivity. Due to favourable weather conditions across the Bay of Bengal in India over the last couple of days, weathermen predict that this year‟s monsoon rains will hit the country on time. The timely onset of monsoon will provide much respite to people in the face of rising temperatures across the country. Mani Ratna Shakya, chief of Meteorology Forecasting Division (MFD) on Wednesday said signs of the monsoon in the country from across the Bay of Bengal in India have been observed. Various ethnic fronts affiliated to the Unified CPN (Maoist) have renewed their warning against the Detailed Project Report (DPR) works of Koshi high dam, Wednesday. 2
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BANKING: Banks sell machinery to recover loans JUN 09 Commercial banks which have invested millions of rupees in various factories have been selling their machinery at scrap value to recover their loans after the promoters fled. More than three dozen large scale industries along the Sunsari-Morang Industrial Corridor have been shut down in the last decade. Banks in Biratnagar have invested over Rs. 4 billion in these industries. Now they have started to sell the equipment and other assets at scrap value to recover their investment. In the last decade, Ashok Textiles, Shivalaya Metal, Shangrila Apparels, JD Apparels, Star Board, Arun Steel, Star Textile, Ganapati Cotton Mill and others have been closed. Most of the private banks have invested in machinery while Nepal Bank Limited and Rastriya Banijya Bank financed the land and buildings of these industries. Nepal SBI Bank that has loaned Rs. 60 million for the machinery of Ashok Textiles Industries has started to sell it to get its money back. “There was no alternative after the promoters fled,� said Gopal Gadtaula, branch chief of Nepal SBI Bank, Biratnagar. According to Gadtaula, the bank has recovered Rs. 9.1 million so far by selling the machinery of Ashok Textiles. After the demise of Navaratan Lohia, promoter of Ashok Textiles, his family moved to India. Likewise, Rastriya Banijya Bank and Nepal Bank Limited have sold the machinery and buildings of Ganapati Cotton Mill to recover their loans. The two banks had issued loans in excess of Rs. 100 million to Ganapati Cotton Mill. NIC Bank has also recovered some of its money by selling the machinery of Om Jagadamba Textiles. The bank had invested more than Rs. 50 million in the company. http://www.ekantipur.com/the-kathmandu-post/2010/06/09/business/banks-sellmachinery-to-recover-loans/209226/
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BUSINESS & ECONOMY: NOC halves penalty amount for wrongdoers June 9: In a controversial decision, Nepal Oil Corporation (NOC), which earlier asked Commission for Investigation of Abuse of Authority (CIAA) to recoup Rs 29.20 million from the staffs who stole oil from Amlekhgunj depot, has now recommended the anti-graft body to recover only half the amount from them. Concerned officials, however, have expressed resentment over the decision, saying that NOC should not have entertained the revision pushed from the backdoor. They even smelt a rat on the case, wherein 21 staffs inflicted the depot 50 percent higher loss than the permitted limit over the span of a year in the name of ´technical loss´. Still more; the anti-graft body has turned blind eye on why NOC´s top management did not take steps to control the loss on time. “NOC´s managing director always gets report on loss from all depots every month, but neither the NOC board nor CIAA had held him accountable for the wrongdoing,” said a source. Bhagawati Kafle, secretary at CIAA, said that they would now punish the wrongdoers to repay just about Rs 14.50 million to NOC. He admitted that the loss amount is half of what they were about to slap. “We reviewed it because the corporation, citing its latest technical report, suggested us to do so. Since it said the revision is done by its technical team, we have to agree,” he told myrepublica.com. Interestingly, the previous loss amount was ascertained by the high-level probe team led by joint secretary of Ministry of Commerce and Supplies (MoCS) and it had technical staffs from NOC as well. The separate technical team that NOC formed some two months ago, on the other hand, included staffs that were infamous and punished for different anomalies in the past. Citing the track record of the team members, sources had raised question over the credibility of its findings at the very outset. “We were wondering why the management formed the new committee when the high-level team had already dug out all facts on anomalies in Amlekhgunj. Now its purpose has become clear,” said the source. Interestingly, NOC has recently formed yet another committee, including top management officials, to ´investigate losses´ at its depots. “We won´t be surprised if the team gave clean cheat to the wrongdoing staffs or sharply lower the loss amount yet again,” the source said. The members of the team that halved the loss volume, meanwhile, said that they reviewed the loss because NOC had received a substantial chunk of petroleum products from Barauni during the past one and half years.
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Because Barauni is farther and has temperature higher that Raxaul -- the regular import point -- the team has argued that it had raised the loss and adjusted those accordingly in its new findings. Knowledgeable officials, however, did not agree with the team´s argument. “The previous high-level team too had taken all those facts into account,” the added. http://www.myrepublica.com/portal/index.php?action=news_details&news_id=19706
Five new plants in Morang JUN 09 Five industries have recently been set up in Sunsari-Morang Industrial Corridor, one of the country‟s major production hubs. Not long ago, industries here were forced to shut shop due to sustained insecurity and labour problems. Once the backbone of the Nepali manufacturing sector, this corridor had been losing business to other industrial corridors. Old industries are also investing to expand their business. Golchha Organisation, one of the country‟s leading business houses, has set up a new industry with an investment of Rs. 400 million. The organisation is now starting the manufacture of iron rod. “We‟ll start production after two months,” said Mukesh Rathi, director of Hulas Wires. According to him, the new industry will have an annual production capacity of 100,000 tonnes and will employ 200 workers. Likewise, Rijal Group is setting up a gas factory in the corridor. The group that has so far been manufacturing polytanks will now introduce „Rijalko Bhansa Gas‟ with an investment of Rs. 150 million. According to Nabin Rijal, managing director of the group, production will start in four months. Bagmati Oil Industries that has been producing refined oil is also setting up a new plant. The plant, requiring an investment of Rs. 80 million, will employ 40 people, according to promoter Dewaki Nandan Agrawal. Rathi Group is preparing to establish a plywood factory. “The factory will have an investment of Rs. 120 million,” said Diwakar Rathi. It will start production in five months, he added. What‟s more, Ganesh Agrawal and Sudheer Todi are investing Rs. 70 million to set up rice mills here. Businessmen have welcomed the addition of industries in the corridor. “If security situation improves, more industries will be established.” said Shiv Shankar Agrawal. Dinesh Golchha, President of the Morang Chamber of Industries, said private sector was keen to invest if political uncertainties ended. “Industrial investment will increase if the government devises clear policies,” said Golchha.
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http://www.ekantipur.com/the-kathmandu-post/2010/06/09/business/five-new-plantsin-morang/209230/
Cancelled hotel bookings see a revival Of late, hotel owners in the Kathmandu valley are heaving a sigh of relief. A large number of bookings were cancelled during the week-long strike call given by Maoists. Now, the sector is witnessing a revival in the business, especially hotel reservation and bookings. About 10-15 per cent of reservations and booking that were cancelled during a weeklong general strike from May 2 have been reconfirmed. “As the political parties have shown commitment to consensus, hotel booking and reservations for the coming season have improved, with renewal of old cancelled bookings,” said Madhav Om Shrestha. Majority of cancellation came from Indian tourists, followed by Europeans. “For the tourist season that is after monsoon, it is mainly the European tourist who are willing to travel to Nepal and the bookings are made at least 6 months or a year in advance,” said Shrestha. “There are a number of reasons for improvements in tourist reservation and bookings,” said Hari Sarmah, Chief Executive Officer, Nepal Association of Tour and Travel Agents (NATTA). The main reasons behind the revival are positive information flow, effective marketing, and more international flights. “Tourist arrivals from South-east Asia and European countries have shown an upward trend,” he said. Air connectivity has improved with about two dozen international flights connecting the valley with the rest of the world. “The government has also become lenient and is allowing domestic airlines to operate international flights,” said Sarmah. The government also needs to help strengthen national carrier Nepal Airlines Corporation (NAC). According to
Sarmah,
European
tourists
are
mostly
re-visitors
of
our
country.
Data from Tribhuvan International Airport‟ (TIA) Immigration Office for May reveal that the European markets registered an overall growth of 10.8 per cent with major source markets showing positive trend in terms of visitor arrivals. Arrivals from the UK, Germany, the Netherlands, Switzerland, Denmark, Czech Republic and Poland are up by 4.9 per cent, 14.2 per cent, and 47.5 per cent, 12.3 per cent, 20.9 per cent, 75 per cent and 278.6 per cent respectively. Arrivals from the South Asian region, except for Sri Lanka, have gained an overall growth of 6 per cent, with Bangladesh (30 per cent) and Pakistan (26.3 per cent). Visitor arrivals from India have shown a sustained growth this year and in May increased by 4.3 per cent.
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http://www.thehimalayantimes.com/fullNews.php?headline=Cancelled+hotel+bookin gs+see+a+revival&NewsID=246508
MARKET: NEPSE maintains upward trend JUN 10 - The Nepal Stock Exchange (NEPSE) on Wednesday registered a moderate gain of 3.84 points. The benchmark index settled at 486.60 points when the market closed for the day. A rise in the commercial bank and hydropower sub-indices pushed the NEPSE up. On Wednesday, the commercial bank and hydropower sub-indices saw gains of 5.94 points and 2.04 points respectively. However, the trading, development bank, finance and insurance sectors shed 2.14 points, 1.01 points, 0.77 point and 0.37 point respectively. The secondary market witnessed a turnover of Rs. 35.16 million through transactions of 80,790 shares of 73 companies. Out of the 73 companies on the trading floor, Standard Chartered Bank posted the highest gain of Rs. 40 per share while Bishal Bazaar Company suffered the most. Likewise, Sunrise Bank topped the chart in terms of the number and value of shares traded with 12,340 shares worth Rs. 4.25 million. http://www.ekantipur.com/2010/06/10/business/nepse-maintains-upwardtrend/316070/
Price policy in the offing JUN 09 The government is working on a price policy to control market prices and ensure easy availability of daily essentials at reasonable prices. Even though the Consumer Rights Protection Act 1998 has mentioned the possibility of formulating policies related to quality, price and supply of consumer goods and services, it has not been done despite the occurrence of irregularities like hoarding and unnatural price hikes. “As this crucial policy has always remained out of focus, we are working to get it endorsed before the end of the next fiscal year,” said Anik Thakur, director general of the Department of Commerce. “Besides, for controlling the market, it will also clearly indicate the duty of the central government and district level government bodies working for consumer rights protection.” Initially, the department will draft a price policy and discuss it with all the
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stakeholders including traders, consumer rights groups, business people and experts from to make a joint action plan. The department had proposed formulating the price policy in the budget for the next fiscal year 2010/11. It has asked the government to allocate Rs. 200,000 for the purpose. The department is also planning to set up a Reference Price Information Centre with the money to inform the general public about market prices. The department has urged the government to increase the annual budget allocation for Tarai districts to Rs. 25,000 (up from Rs. 15,000), to Rs. 20,000 (up from Rs. 12,000) for hilly districts and to Rs. 15,000 (up from Rs. 7,000) for mountain districts to carry out the market monitoring work more effectively. Targeting restructuring and strategic planning of the department, it has demanded a total of Rs. 12 million for the upcoming fiscal year. The government had allocated Rs. 10 million to the department for the current fiscal year. “During the next fiscal year, we will be focusing on making our existing laws strong by updating them as per the need of the time,” said Thakur. “Soon, we are also finalising the amendment to the Consumer Rights Protection Act.” The government is amending the existing Consumer Rights Protection Act by incorporating different provisions such as clear definition of hoarding to discourage black marketing of essential commodities. “There were cases of hoarding, however, we could not take strong against those involved in unethical practices due to lack of relevant laws,” said Thakur. http://www.ekantipur.com/the-kathmandu-post/2010/06/09/business/price-policy-inthe-offing/209231/
POLITICS: Doubts over new budget JUN 09 Entrepreneurs of Morang district are worried by a likely delay in the announcement of the budget for the fiscal year 2010/11 as the budget session has been postponed. Dinesh Golchha, president of the Chamber of Industries, Morang, said that manufacturers of iron rods, cement and bricks set their production and revenue targets on the basis of the budget. “We are confused by the uncertainty over the budget.”
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Producers of construction materials also study the budgetary allocation for development projects while preparing their production target. The amount of customs duty and other taxes are also bases for their business plans. Abinash Bohra, general secretary of the Morang Merchant Association, said that the likely delay in the budget would also force entrepreneurs to postpone their annual plans which is not good for them. Kishor Pradhan, acting president of the Eastern Chamber of Commerce, compared the current situation with that of last year when the budget was endorsed later than usual. “Political instability is the main problem,” he said. http://www.ekantipur.com/the-kathmandu-post/2010/06/09/business/doubts-overnew-budget/209233/
Term limit for NC prez settled June 9: Confusion surrounding the term limit for the Nepali Congress (NC) party chief ended Wednesday after the ongoing Central Working Committee (CWC) meeting arrived at a consensus not to count the period served in that office when the party was divided into the NC and the Nepali Congress (Democratic). The CWC meeting that continued for a second consecutive day Wednesday decided to bar any person holding the post of party president after the party´s 10th general convention and after the merger of the NC with the NC (D) ahead of the Constituent Assembly election in 2008, from contesting for the post of NC president at the 12th general convention. According to NC spokesperson Arjun Narsingh KC, the decision was taken after the CWC members arrived at a consensus not to take into account the term in office served when the NC was divided. Differences had surfaced after the Election Committee of the party headed by Radhe Shyam Adhikari presented the Election Directives at the CWC meeting on Tuesday with a provision not to allow any person who has already served two terms as party president to contest again for the same post at the upcoming general convention. NC CWC member Nara Hari Acharya said Thursday´s CWC meeting will finalize the Election Directives after holding necessary discussions on issues related to the representation of minority and backward communities. CWC members have demanded detailed discussions to define who are the minorities and backward communities, with a view to ensuring their representation in the party rank and file. Acharya said the CWC meeting scheduled for Thursday will endorse the Election Directives after incorporating suggestions made during the meeting.
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On Tuesday, the Election Committee had proposed holding village, municipality, region and district level conventions in all 75 districts on the same day sometime between June 19 and 29. The proposal was made as holding of such conventions on different dates had invited internal strife due to interference from the center. Most CWC members are unanimous over the proposal. Wednesday´s meeting dwelt largely on how to successfully organize the party´s 12th General Convention scheduled for August 26-30 in Kathmandu. The meeting has asked a probe committee formed under the chairmanship of Nara Hari Acharya to settle differences seen at the district committees over active membership distribution by mid-June. The committee has already received active membership lists from 51 districts. The committee is yet to settle the active membership distribution row in 24 districts. According to NC spokesperson KC, the meeting also held discussions on the threepoint agreement reached on May 28 and the progress made during bilateral and tripartite meetings held with the UML and the Maoists following the three-point deal. KC said that the NC has not sought the support of other parties to lead a new government. “The NC has not staked any claim to the government´s leadership now,” he said. “NC is ready to support the government even while remaining outside it, for the sake of the peace process and constitution drafting.” http://www.myrepublica.com/portal/index.php?action=news_details&news_id=19700
3-pt deal key to statute: Speaker JUN 09 Constituent Assembly (CA) Chairman Subas Chandra Nembang said on Wednesday that the new constitution can be drafted within eight months if the political parties implement the three-point deal signed on May 28. Launching a book titled „Nepal: Design Options for the New Constitution‟ and edited by lawyer Bipin Adhikari here on Wednesday, he remarked that there was no alternative to forging consensus. “I have held discussions with top political leaders of major political parties including Prime Minister Madhav Kumar Nepal and urged all of them to be serious about forging consensus,” said the CA chair. “They have shown commitment for it and I am optimistic that the present stalemate will have be resolved within a couple of days.” Recalling the last minute three-point deal on May 28, Nembang said that it has generated hope among the general public and created optimism about the collective effort of political parties to draft the constitution on time. He added that the
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Constituent
Assembly has
completed
75
percent
of
its
task
till
date.
Speaking on the occasion, Nilamber Acharya, Chairman of the Constitutional Committee said the political parties need to come up with a joint vision regarding disputed issues in the CA for the timely promulgation of the constitution. He said the book drafted with participation of over 250 constitutional experts would prove beneficial in drafting the new constitution. http://www.ekantipur.com/the-kathmandu-post/2010/06/09/nation/3-pt-deal-key-tostatute-speaker/209204/
Nepal PM not to resign unless guarantee of a national govt KATHMANDU: Prime Minister Madhav Kumar Nepal will not resign unless there is a "guarantee" for the formation of a national consensus government and an agreement is made with the Maoists on key issues, a minister has said. "Unless there is guarantee to forming a national consensus government to draft the new constitution Prime Minister Nepal is not going to resign," Tourism and civil aviation minister Sharad Singh Bhandari said. The Prime Minister will immediately resign once there is agreement on the key issues, he pointed out. As the national consensus government is a must to complete the peace process and to draft the new constitution without reaching an understanding among all 25 political parties that have representation in the Parliament there is no point in quitting the government under the Maoists' pressure, he said. He asked the Maoists to cooperate for working out a framework of the national consensus government with the decision as to who will lead such a government. Before forming such a government there is a need to dissolve the paramilitary structure of the Young Communist League of the Maoists, returning the seized property and determining and size and modalities of the Maoist combatants for army integration, he pointed out. The Prime Minister will not resign to form another majority government, as the present coalition government itself is a majority one, he said adding only a national consensus government can resolve the political stalemate. The government is serious about drafting the new constitution and taking the peace process to the logical conclusion, he said. However, Unified CPN-Maoist vice chairman Baburam Bhattarai has accused that the
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ruling Nepali Congress and CPN-UML are trying to obstruct the peace process by asking the Maoists to determine the number of combatants to be integrated into the army. Our party is against fixing the number of Maoists combatants to be integrated in the security forces before asking the combatants themselves for their choice, Bhattarai said after his meeting with United Nations Mission in Nepal chief Karin Landgren on Wednesday. http://timesofindia.indiatimes.com/world/south-asia/Nepal-PM-not-to-resign-unlessguarantee-of-a-national-govt-/articleshow/6030941.cms
DPM Gachchhadar off to New Delhi Deputy Prime Minister and Minister for Physical Planning and Works Bijaya Kumar Gachchhadar has left for New Delhi, India Wednesday morning. Gachchhadar flew to New Delhi by a Jet Airways flight at 9.30 am today. He has gone to India for treatment of his eyes. Gachchhadar will also meet leaders of Indian political parties during his visit, according to his aides. Gachchhadar, also the chairman of Madheshi Janadhikar Forum Loktantrik, has been saying the next government should be led by a Madhesbased party since past few weeks. Talking to reporters at Tribhuvan International Airport (TIA) before his departure, DPM Gachchhadar said, the political parties failed to reach consensus due to differences in power and position sharing. He blamed the largest three parties in the Constituent Assembly (CA) for the present sorry state of the coutnry. Gachchhadar's India visit, at a time when the country is going through a decisive phase, is viewed with interest. His travel plans were fixed only Tuesday evening.nepalnews.com http://www.nepalnews.com/main/index.php/news-archive/19-general/6678-dpmgachchhadar-off-to-new-delhi.html
GENERAL: Landgren meets Bhattarai JUN 09 Chief of the UN Mission in Nepal Karin Landgren on Wednesday met UCPN (Maoist) Vice Chairman Baburam Bhattarai and stressed the need for progress on the
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integration
and
rehabilitation
of
the
Maoist
combatants.
In the meeting, the Bhattarai said CPN-UML and Nepali Congress were obstructing the integration process by putting a condition for immediate decision on combatant number to be integrated in security agencies. He said the party is ready to bring its fighters under the Special Committee. “The number can be fixed after providing choice to the combatants,” Bhattarai‟s aide Bishwodeep Pandey quoted the leader. www.ekantipu.com
Mountain Helicopters to operate air ambulance June 9: Mountain Helicopters (P) Ltd, which was established nine months ago operating a Europe-made AS350B2 helicopter, is preparing to add an air ambulance in its fleet. Captain Dawa Jangbu Sherpa, executive chairman of the company, said they were preparing to bring an air ambulance of Eurocopter, which is currently being used by a company-based in South Africa. “Most probably the air ambulance will enter the country next week,” Captain Sherpa told myrepublica.com. Apart from the air ambulance, the company is also preparing to add a brand new chopper manufactured by Eurocopter in autumn. “We will use the chopper for rescue flights,” Captain Sherpa added. This is the first time that an air ambulance is being brought to Nepal. “Paramedics in the chopper will provide preliminary treatment to the patient aboard the chopper before the patient is flown to nearby hospital for treatment,” Captain Sherpa added. The chopper of Eurocopter AS350B3 series with the facility of emergency medical service (EMS) has paramedics on board, inbuilt stretcher and saline and oxygen facilities, along with necessary medical equipment. The chopper can accommodate a patient and two passengers. “We decided to introduce an air ambulance to our fleet because we felt its necessity while conducting numerous rescue flights during the nine months of our operation,” Captain Sherpa said. Mountain Helicopters became airborne from December 21 last year. It is promoted by a group of experienced pilots with the investment of Rs 420 million. Captain Sherpa said the aviation sector, helicopter business in particular, has become more professional over the years. “Earlier Nepali chopper companies used to acquire 13
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old choppers that were more than two decades old. These days they are acquiring brand new choppers,” he added. Apart from mountain rescue flights, Mountain Helicopters is also eyeing the booming construction sector in the country. Pasang Norbu Sherpa, marketing director of the company, said they hope to get good business from numerous hydro power projects that are being developed across the country. “We will see more such projects if the political situation became stable. I think the existing chopper companies won´t be able to meet the huge demands for choppers then,” Pasang added. Pasang says the demand for choppers is growing at an impressive rate. “We have six chopper companies at present and all of them are doing great,” Pasang said. Mountain Helicopters have been offering chartered flights at $1,880 per hour as introductory rate even though the normal rate is around $2,500. http://www.myrepublica.com/portal/index.php?action=news_details&news_id=19709
CIAA tells ministry to jump JUN 09 The Cabinet on Wednesday sacked Chief of Janak Shikshya Samagri Kendra Birendra Kumar Das. Earlier, the Cabinet suspended him after recommendation from the Commission for the Investigation of Abuse of Authority (CIAA) and appointed Ram Chandra Silwal as acting chief. CIAA also recommended department action against Das for his alleged involvement in misappropriation of Rs. 70 million in printing textbooks of Grade One to Ten. The Cabinet has formed a committee to investigate the corruption cases in Samaj Kalyan Parishad. The Cabinet also appointed Ramchandra Adhikari new chairman of Baidhyakhana Bikas Samiti and promoted two Senior Superintendents of Police — Tapendra Dhwaj Hamal and Keshav Bahadur Shahi — to Deputy Inspector Generals. The Commission also directed the Ministry of Agriculture and Cooperatives (MoAC) to scrap its decision to give on contract 301 stalls to Kalimati Fruit and Vegetable Market Management Board (KFVMB). “Officials at the Board contracted stalls without the bidding process for 15 years, amending by-laws. It is a grave violation of Public Procurement Act-2063 and Competition Promotion Act-2063,” said CIAA. Former Agriculture Minister Jaya
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Prakash Prasad Gupta had formed the Board misusing quota allocated for farmers. The same board extended the tenure of contracts to 15 years from five years without a formal bidding process, amending by-laws under the Public Competition Promotion and Market Act-2006. The Commission said that three sets of quota allocated for farmers in the board were “misused” and “malpractices were rampant”. The probe found that “fake farmers” occupied positions reserved for farmers in the board. Market Development Regulations-2060 has provisioned mandatory representation of three farmers in the 11-member board but no real farmers are represented in the Board. “Investigation shows fake farmers are included in the Board sidelining genuine peasants, and also that anomalies have crossed the limit,” CIAA Spokesman Ishwori Poudel told the Post. http://www.ekantipur.com/the-kathmandu-post/2010/06/09/top-story/ciaa-tellsministry-to-jump/209196/
Abuse of Nepalis hits Mideast height JUN 09 The US-based Human Rights Watch has urged Saudi Arabia and Kuwait to jointly investigate abuse and apparent trafficking of Nepali domestic workers who agree to work in Kuwait but are instead made to work in Saudi Arabia against their will and abandoned there. In a statement on Wednesday, the international rights watchdog said “Kuwaiti employers hire Nepali domestic workers, then illegally transport them to Saudi Arabia against their will”. Kuwaiti employers leave the workers with Saudi families who are often related to Kuwaitis and who usually pay a fee to them. The workers are then forced to work for Saudi families. “Saudi prosecutors have new legal tools to bring human traffickers to justice and should use these,” said Sarah Leah Whitson, Middle East director at HRW. “The reports about abuse and trafficking of these Nepali workers urgently put Kuwait on notice that it needs to pass its own anti-trafficking law.” HRW also quoted a Nepali embassy official in Riyadh who confirmed that it was difficult to hire domestic workers in Saudi Arabia because of short supply and that Kuwaitis, who transport workers for a fee from Saudi employers, are exploiting that shortage. Saudi Arabia passed an anti-trafficking law in July 2009. The Kuwaiti parliament is considering a draft of an anti-trafficking law. Both countries have drafted, but not passed, legislation protecting domestic workers‟ labour rights.
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More than two million foreign domestic workers are employed in Saudi Arabia and Kuwait and are at high risk of abuse and exploitation due to flaws in labour laws and restrictive immigration practices. According to a report in the May 26 issue of Arab News, there are over 50,000 Nepali domestic workers in Saudi Arabia. These employers have a tendency to abuse domestic workers and when they no longer wish to employ them or avoid paying fines for illegal hiring, they often abandon the workers at the Nepali embassy. “Kuwait and Saudi Arabia should update and pass measures protecting labour rights of domestic workers,” Whitson said. “The updates should include measures to prevent employers taking domestic workers abroad against their will.” HRW‟s investigation of abuses against domestic workers in Saudi Arabia, published in a July 2008 report, “As If I Am Not Human,” revealed cases of forced labour, trafficking, slavery and slave-like conditions, alongside the more widespread complaints of non-payment of wages and long working hours. Meanwhile, MoFA said that it is aware of what is happening in Saudi Arabia and will soon take up this issue through diplomatic channels. “The ministry is concerned over reported incidents of abuse of Nepali migrant workers in Arabia. We are working on this issue and will soon take this up,” said a senior Foreign Affairs Ministry official. According to MoFA, there is no bilateral labour agreement with Saudi Arabia and that makes it difficult for Nepal to deal with labour issues. In view of “human trafficking” from Nepal and frequent incidents of labour abuse, the government had asked the India to restrict Nepali migrants from travelling via New Delhi to Saudi Arab and Gulf countries. For quite some time, human traffickers in Kathmandu have been using Indian airports to evade checking at the Tribhuvan International Airport. http://www.ekantipur.com/the-kathmandu-post/2010/06/09/top-story/abuse-ofnepalis-hits-mideast-height/209195/
Rain gain on cards: MFD JUN 10 - Due to favourable weather conditions across the Bay of Bengal in India over the last couple of days, weathermen predict that this year‟s monsoon rains will hit the country on time. The timely onset of monsoon will provide much respite to people in the face of rising temperatures across the country. Mani Ratna Shakya, chief of Meteorology Forecasting Division (MFD) on Wednesday said signs of the monsoon in the country from across the Bay of Bengal in India have been observed.
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R&D Economic Research & Business Development “It is likely that a weak surge of the monsoon will hit the eastern part of the country in the next two days and continue to advance westwards in a week,” he said. Normally, the first monsoon rains enter the eastern region by June 10. According to him, though normal early monsoon was predicted for the country earlier, Cyclone Phet that originated in the Arabian Sea hindered the further advancement of monsoon clouds from Kerala state on May 31, the first place to record the monsoon rains in the region. The South-west Indian monsoon rains lashed Kerala on May 31, a day ahead than usual but the effect was stalled by Cyclone Phet. Though conditions are favourable for a good monsoon, the western and central regions are likely to experience a rise in the mercury over the next few days, said Shakya. http://www.ekantipur.com/2010/06/10/headlines/Rain-gain-on-cards-MFD/316082/
Doc kidnap report within a few days JUN 10 - Nepal Police has said that the facts regarding the abduction of Dr. Bhaktaman Shrestha would be made public in a few days. Dr. Shrestha, executive director of Bharatpur-based BP Koirala Memorial Cancer Hospital, was released on June 5 after 19 days of captivity. Organising a press conference at the police headquarters on Wednesday, spokesman Bigyan Raj Sharma claimed that the police had acquired information regarding Shrestha‟s condition after his abduction. “It was pretty difficult to raid the area where Dr. Shrestha was held hostage because the abductors could harm Dr. Shrestha,” said Sharma adding, “Dr. Shrestha‟s safe release was the major concern then.” He claimed that Shrestha released due partly to the mounting pressure from the security bodies. Some „factors‟ regarding Shrestha‟s abduction require further investigation and it has delayed in making the probe report public, he said. In another context, Sharma informed that seven people had been arrested over the Unity Life International swindle while five alleged were still at large. “None of those involved in criminal activities will be spared,‟ said Sharma. He said that the killers of media entrepreneur Arun Singhaniya have fled to India. “We are talking to the Indian counterpart to help us nab the criminals and planning to bolster the border security,” said Sharma.
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R&D Economic Research & Business Development Referring to Tuesday‟s car bomb blast in the Capital, DIG Sharma said three people have been arrested in connection with the incident. “In the name of new parties criminal groups are trying to take advantage of the transitional period,” said Sharma. However, Sharma said the security agency is trying to curb crime through optimal use of the available resources. The police on Wednesday publicised a report about criminal activities that took place in the past month (Baishakh). The report shows that criminal activities increased by 4.24 percent compared to the previous month. Meanwhile, a senior police officer claimed some evidences indicated Maoist involvement in Dr. Shrestha‟s abduction. The source said the statement that Nepal Hindu Janata Party was responsible for the abduction was just a “drama”. “The Hindu group owning up to the abduction is merely a drama. We have some information which indicates Maoist involvement in the incident.” http://www.ekantipur.com/2010/06/10/top-story/doc-kidnap-report-within-a-fewdays/316080/
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