Monday, November 30, 2009

Smart Telecom opens operations

With its Rural Telecommunications Service (RTS) license from Nepal Telecommunication Authority (NTA) , Smart Telecom Pvt Ltd made its commercial launch today. Minister for Information and Communication Shanker Pokharel speaking at a press meet called for developing an infrastructure-sharing environment and said the telecom service provider company should move forward in partnership for the progress of the information and technology sector. "We have limited frequency. Therefore among the telecom service providers there must be mutual understanding about service operations so that it will also help the government support the holistic development of the sector," said Minister Pokharel adding that the telecom service provider along with the voice service should also focus on broadband internet service as only two per cent of the total population has access to the internet. "Telecom service providers should work as per the agreed points while issuing license for service operations," he added. Smart Telecom Pvt Ltd chief executive officer Subhas Bajracharya said that among 398 VDCs, VSAT service has started in 100 VDCs along with the operation of fixed line service while in the remaining 298 VDCs wireless service with GSM technology will soon be started.

As per the objective of Telecommunication Policy of 2004, Smart Telecom aims facilitate the access of general public in rural and urban areas to telecommunication services. In the license, STPL is assigned 398 un-served VDCs which lie in the four development regions apart from the Eastern Development Region. As per the license, choice of technology is open in order to provide service in the stipulated areas and even International Long Distance (ILD) service can be launched by payment of appropriate fee to NTA.

Smart Telecom Pvt Ltd is a joint venture having 20 per cent shares of Square Network Pvt Ltd, Nepal, 10 per cent of Gillette Satellite Network Ltd, Israel, and 70 per cent shares of Lalsahu Distribution Pvt Ltd, Singapore. With its main office at Kumaripati, Lalitpur, the company has 20 engineers and 40 employees.

In the above framework, Smart Telecom intends to launch its service by building a mixed network of fixed and wireless technology whichever is appropriate for the location. The service range shall be from voice and data service with wire-line terminals and wireless fixed and mobile terminals for limited mobile wireless terminals. NTA issued the second Rural Telecommunications Service (RTS) license to Smart Telecom Pvt Ltd on July 1, 2008.

FNCCI to take leaf from FMM book

The Federation of Nepalese Chambers of Commerce and Industries (FNCCI) is planning to submit a white paper based on the experience of Malaysia in guiding the industrial policy of the nation. FNCCI took this decision after a visit to Malaysia under FNCCI Mission Malaysia from November 16-20.

Speaking in a press meet, FNCCI president Kush Kumar Joshi said here today, "Our suggestions will be growth of potential industries in Nepal," he said. Without strategic plan and strong political commitment industrial growth is not possible, he added.

Malaysia has adopted a sector-based strategic growth plan and acquired a good record in the last two decades.
It has become a major tourist destination in South East Asia with 25 million tourists a year.
Malaysia also has focus on establishment of export and investment protection agreement (IPA) with 70 countries along with avoidanec of double taxation agreement (ADTA) with 50 countries.

Joshi said that they found during their visit that the Malaysia private sector focuses on IPA and ADTA for investment.

"Without taking these measures, industrial growth is not possible," he said. Political instability, labour disputes and energy crisis are hindering factors in the growth of Nepal.
Nepal and Malaysia trade is around $61.5 million and over $60 million goes into import from Malaysia.

FNCCI and its Malaysian counterpart Federation of Malaysian Manufactures' (FMM) had signed an agreement to boost free trade between both countries. "We agreed to lobby for free trade on both sides on the eve of the golden jubilee of diplomatic relations between Malaysia and Nepal," said Joshi. Diplomatic relations between Nepal and Malaysia were established 49 years ago. Moreover, the Malaysian government is going to adopt a cross-border investment policy soon which can help Malaysian investors establish their manufacturing units in Nepal.

"We have talked about establishing Nepali migrant labour-based industries in Nepal and FMM has in principle agreed," Joshi said. Around 2,50,000 Nepalis are working in Malaysia but most of them are unskilled labourers.

Moneygram brings banking to the height of heights, literally

MoneyGram International, through its super agent partner Samsara Pvt Ltd, has opened two new agents' locations in Nepal at the base of the Himalayas near Mount Everest. One location will operate at an altitude of 17,600 feet above sea level, making it the highest agent location in the world and the other at Namche Bazar (3440 metres). According to Money Gram International South Asia regional director Harsh Lambah, South Asia is a key growth market for MoneyGram.

In India alone this year, MoneyGram has added more than 6000 agent locations.

"The company remains focused on adding more locations throughout the region to meet the vast growing remittance needs of people," said Lambah adding,"We understand the importance of it and in this part of the world means expanding our services into some of the most remote regions."

The two new agent's locations will instantly introduce MoneyGram services to some of the most rural parts of Nepal. For both residents of the region and tourists in the area in need of money transfer services, these new locations will save them a trek of three days or more that they would ordinarily have to make to receive transactions. One of the new agents, Holiday Inn-Gorak Shep is located near a small glacial lake that served as the original base camp for Mt Everest expeditions and today is a major tourist attraction. This agent location is located at approximately 17,600 feet above sea level. The other new agent location, Holiday Inn-Namche Bazaar, is located at Namche Bazaar, which is the main trading village in Khumbu, one of the three sub-regions of the main Sherpa settlements in the Himalayas. Lambah said despite the remoteness of these locations, this region of Nepal supports a vibrant tourist trade. "By establishing money transfer services in the region, we are bringing an unprecedented level access to money and convenience that's beyond the ability of traditional banks to provide while helping to stimulate the local economy."

Samsara, a Kathmandu-based remittance company became a MoneyGram super-agent in May this year.


NIBL is tops, gets good ICRA rating

Nepal Investment Bank Ltd (NIBL) received the investment grade rating of (Nepal ) A.
It is the first bank in Nepal's banking history to receive an investment grade rating of (Nepal) A from Indian Credit Rating Agency (ICRA) -- an associate of Moody's Investors Service. The rating for issuers in Nepal is assigned on a scale, which ranges from (Nepal) AAA to (Nepal) D.

The rating is based on good market position of NIBL, and its track record of boosting its balance sheet while maintaining a stable earning profile thanks to an experienced management team.

"Despite stiff competition, NIBL has maintained a healthy market share of about 8 per cent and 10 per cent in terms of deposit and loans and advances, respectively. Moreover, the growth rate of NIBL has been impressive," said Prithivi Pandey, chairman and chief executive officer of NIBL.

It achieved a relatively higher deposit growth of 41 per cent and 36 per cent in 2007-08 and 200809. NIBL, which also has the largest credit portfolio of Rs 36.2 billion among commercial banks in Nepal till mid-July 2009, recorded a strong four-year Cumulative Average Growth Rate (CAGR) of 37.5 per cent in lending from Rs. 10.1 billion mid-July 2005.

NIBL has delivered good and stable profitability and net interest margin over the years with low operating expenses.

Regulatory capital adequacy ratio of 11.24 per cent as of midJuly 2009, with a Tier I capital ratio of 8.56 per cent coupled with NPA of 0.58 per cent in mid-July 2009 and provision coverage of over 90 perc cent demonstrates the sound health of NIBL.

ICRA's Rating Scale for Issuers/Instruments in Nepal is (Nepal) AAA -- the highestcredit-quality rating relative to other domestic issuers, (Nepal) AA: High-credit-quality rating relative to other domestic issuers, (Nepal) A: Adequatecredit-quality rating relative to other domestic issuers, (Nepal) BBB: Moderate-credit-quality rating relative to other domestic issuers, (Nepal) BB: Inadequatecredit-quality rating relative to other domestic issuers, (Nepal) B: Risk-prone-credit-quality rating relative to other domestic issuer, (Nepal) C: Poor-credit-quality rating relative to other domestic issuers and (Nepal) D: Lowestcredit-quality rating relative to other domestic issuers.

Flydubai to begin service in December

The low cost airline is going to start its eleventh route on its network -- Kathmandu from next month. Flydubai's first flight to Kathmandu on December 15 will ensure that this increasingly popular destination in the foothills of the Himalayas will be more accessible to a greater number of people in the UAE who will now be able to take advantage of Flydubai's commitment to making travel a little less complex and less expensive.

Almost three times as many tourists have visited the region in the first half of this year as in the same period in 2008. Flydubai CEO Ghaith Al Ghaith said introducing Kathmandu will mean one of the most exciting travel destinations in the world becomes more accessible to people in the gulf region. It will also give the Nepalese community in the UAE greater opportunity to visit home more often. Flydubai's service which operates four times per week to Kathmandu (FZ567) will leave Dubai International Airport Terminal 2 at 7 am arriving at 12:40 pm local time. The return flight leaves Kathmandu at 1:40 pm local time reaching Dubai at 5:10 hours local time. Fares range from NRs 7,098.52 one-way.

A normal payment of NRs 101.40 allows customers to select their seat and just NRs 1014.07 secures extra legroom.

Entrepreneurs urge govt to take up cause

Entrepreneurs from Pokhara in a meet with representatives of Federation of Nepalese Chambers of Commerce and Industry called for timely operation of international flights from Pokhara.
The initiative of the entrepreneurs comes in the wake of Buddha Air's plan to initiate its flights from Pokhara connecting India. The air agree- ment between Nepal and In- dia regarding air link between Nepal and different cities of India is a welcome decision, said Ananda Raj Mulmi, former president of Pokhara International Aviation Operation Committee. According to Mulmi, the government should develop important infrastructure so that Buddha Air is able to operate flights by February 2010 from Pokhara to Lucknow.

Another international airport is required for immigration, customs and security.


WTO Ministerial Meet Crucial for Nepal

The WTO general council, on 26 May 2009, has agreed to hold the seventh session of the WTO ministerial conference in Geneva, Switzerland, from November 30 to December 2.

The general theme for discussion shall be "WTO, the Multilateral Trading System and the Current Global Economic Environment". Talking about the main agenda of Nepal, Dr Badri Pokharel, chief of the WTO division at the Ministry of Commerce and Supplies said, Nepal will focus on issues of trade facilitation, duty free quota free access for the least developed countries, and trade-related technical assistance. "During the 2001 Doha round there was an agreement in principle t by the ministerial meeting t for under-developed countries but regarding the technical side of carrying out the decision there has been no endorsement till now," said Dr Pokharel adding that this time they will raise urge the ministerial meeting to endorse the decision made in the 2001 Doha t round meeting. f Being a landlocked coun- i try and among LDCs, Nepal is bearing high cost. Therefore, the other agenda for Nepal will be talks regarding getting compensation t for the high cost it is bound to pay in the international market, Dr Pokharel said.
He added that Nepal will also be focusing on agricul- t tural negotiations, "Nepal i will actively participate in WTO agriculture negotia ions to ensure that its in erests are taken into account and that special and preferential treatment is granted," he said.

Given the global economic environment, this conference should be a much more lean and economical event than in the past. At the present junc ure, holding a lavish con erence would not only be nappropriate, but would also be seen as extravagance. This departure from past ministerial conferences could help members o establish a new model of ministerial-level meetings conducive to good governance and overall review of WTO. The sixth WTO minis erial conference was held n Hong Kong from December 13 to 18 in 2005.


HAN Dismayed at Worker Union's Protest

The ongoing protest of All Nepal Hotel and Restaurants Workers Union (ANHRWU) might disturb hotel bookings, affecting Nepal Tourism Year 2011, said Madhav Om Shrestha, executive director of Hotels' Association Nepal (HAN).

"If the agitation launched by the union persists, we will be compelled to cancel hotel bookings," said Shrestha.

"Currently, the workers are demanding 40 per cent increment in basic salary and 100 per cent increment in dearness allowance," he said.

Meanwhile, ANHRWU central committee president Ramesh Pant said that the demands placed by the union are reasonable. "It's a month that the demand was forwarded but there has been no concern shown," said Pant.


Birla Cement in Market

Mangalam Cement Ltd has started sales and distribution of Birla Uttam Cement in Nepal. According to a press statement, Rina Group is the only exclusive authorized distributor of Birla Uttam Cement in Nepal and will look af ter the distribution of Birla Uttam Ce ment. Its products, Birla UTTAM 43 Gr.OPC and PPC, a brand trusted by mil lions of users and builders across the length and width of the country and neighbouring countries speaks of its holistic quality.

Bonus Shares of Nepal Housing and Merchant Finance

Nepal Housing and Merchant Finance Ltd's 160th board meeting on November 16 decided to distribute 19 per cent of bonus shares adding tax on one per cent, from its profit of the fiscal year 2008-09, according to a company statement. The company plans to propose 20 per cent dividend distribution during its annual general meeting.

Sunday, November 29, 2009

Third Tourism Fair Opens Amid Fanfare

For tourism promotion, Nepal and India can develop a common marketing strategy, opined Indian tour operators during the inauguration ceremony of the third National Tourism Fair 2066.

Vijay Thakur, president of Indian Association of Tour Operators said Nepal and India can coordinate and develop common marketing strategies to develop joint tourism.

"Both the nations have great possibilities for tourism enhancement and together they can boost the sector," said Thakur. He added that India is willing to grant scholarship to students in the south Asian region studying tourism and hotel management studies to build up and develop manpower in the tourism sector. He also said that to promote South Asian tourism, 2010 can be declared the SAARC tourism year.

Meanwhile, Minister for Tourism and Civil Aviation (MoTCA) Sharat Singh Bhandari urged all political parties to show concern for the tourism sector and coordinate with each other for its development.

MoTCA secretary Nagendra Prasad Ghimire said the National Tourism Fair is good enough for the promotion of the tourism sector. The international fair can also promote south Asian tourist destinations and build up good relations with the south east Asian region for tourism. "There is a need for positive flow of information regarding security development in Nepal," added Ghimire.

Speaking on the occasion, UFTAA president William Tan opined that the tourism fair and foeign travel rmart can be helpful for tourism awareness and destination promotion. It can help develop networking and brand promotion of a country or place as a tourist destination.

Nepal Tourism Board for the promotion of internal tourism and develop rural tourism has has organised the third National Tourism Fair 2066 from November 23 to 25 at Bhrikuti Mandap.

The fair is focusing on the preservation of rural tourism and create networking between tourism entrepreneurs. It has 83 stalls.


Manakamana Cable Cars Turns 12

Manakamana Cable Cars has entered its 12th year of operations. In all its years of operations, the cable car service has benefited lakhs of devotees visiting Manakamana Temple from Cheres of Chitwan to the Manakamana holy sitye in Gorkha district. Thanks to the cable car service, Manakamana has developed as a religious tourism site. The cable car service provides valuable revenue to the state coffers. It also enables locals, allowing them the facility of transporting the needful essential items. The company that runs the service is planning to extend cable car services to other partys of the country also.

Kasthamandap Development Bank Thankful

Kasthamandap Development Bank has expressed its gratitude to its shareholders, distribution centres, banks and other financial institutions for floating its shares in the market smoothly. The sale and issue management of the shares of the bank has been fulfilled by NIDCC Capital market Limited. The bank floated 160,000 unit shares worth Rs 96 milllion each at face value Rs 100 on November 17. The issue ended after three days of initiation.

NRB Government Calls for Good Governance

Independent Business News (IBN), a pioneer television programme producer on finance and economics, organized a half-day workshop on `Good governance in financial sector' today at Kupondole, which was inaugurated by Nepal Rastra Bank governor Bijayanath Bhattarai.

Speakers at the programme that included the board of directors of banks, CEOs of banks, heads of other financial institutions and policy-makers talked about the importance of good governance in order to build strong financial growth. CEO of Standard Chartered Bank Limited Sujit Mundul said good governance is complementary to corporate governance (CG) and as CG facilitates shareholders it is equally responsible for other stakeholders including employees.

"The banking sector is better than other sectors in Nepal, and without a sound banking system strong financial growth can never be expected," said Mundul. He added that there is a need for regulating bodies in order to control the management, a task that is being fulfilled by NRB. Mundul clarified that apart from good academic qualifications the board members of any institution should possess leadership values so as to maintain good governance. Commenting on the paper submitted by Mundul, Kumari Bank CEO Radhesh Pant stated that indeed good governance (GG) is the reason that the banking sector of Nepal is doing far better than other sectors. He added that it not only increases the investment by investors, but also lead to a state of sustainable profit in the long run.
Highlighting the importance of good governance, Pant added that CG increases the company valuation and minimises the misunderstanding between the management and employees. Pant stressed that regulatory bodies should be more proactive in order to implement good governance.

NRB executive director Maha Prasad Adhikari said that good governance is the backbone for the sustainable growth. He pointed out that like in developed countries the banking sector of the country should also practice good governance and address weaknesses so that the risks associated can be minimized.

Concluding the interaction programme, NRB governor Bhattarai said, "The principles of good governance should be honoured and breaches of law, rules and regulations should not be justified just due to mere profit. CG should be prioritized by every institution and then the internal risk management procedures have to be practiced to further strengthen it."


Friday, November 27, 2009

DURABLE AND CHEAP - KONKA

CHINESE cuisine is loved and relished by almost everyone, and Chinese gadgets have taken over the world. It costs a great deal less than other brands and therein lies the major attraction, prompting people to give those a second glance if not buy it altogether. Chinese products have dominated the world market, challenging huge brands in various sectors. And one such Chinese brand that has made its own niche in the Nepali market and homes is the electronic brand Konka.

SPREADING ROOTS AND BRANCHES Established in 1980, the Konka Group is China's first Sinoforeign joint consumer electronics enterprise, manufacturing and distributing its own brand of products. The company was reconstructed into a Sino-foreign public sharehold company in the August, 1991 and A-share and B-share were listed on the Shenzhen Stock Exchange.

Today it has five major manufacturing plants in the northwest, south, east and south-west of China and has already established production bases in India, Indonesia, Mexico and recently in Turkey . At the Las Vegas International Consumer Electronic Fair in January 2000 Konka won the award for Innovation.
DOMINANT PLAYER In Nepal, Konka products are imported by Saurabh Photo International, which is one of the umbrella companies of the Shanker Group. Starting with the TV line of products like CRTs and LCDs, they started their distribution business in 2000. All the electronic goods and appliances are brought directly from China.

"Before we came into the market, only popular international brands were available and they had the market in their palms. Then we came with our cheaper but durable prod ucts, and it was more of a shock to the purchasers," said Sanjit Raj Joshi, Manager, Sales and Marketing of Konka.

Currently they have 60 autho rised dealers in Nepal from which 40 other sub-dealers distribute Konka products all over Nepal.

"We can proudly say that when our products entered the Nepali market, it changed the stereotypical misconcep tion of the quality of Chinese products and people started to have faith in Chinese brands too," said Joshi.

RANGE OF PRODUCTS In their product line, they have TVs, mobile phones, re- frigerators, washing machines, air conditioners and even DVD players. After the range of CRTs, LCDs, plasmas and projection, they are also planning to bring in the latest LED models in the market.

"These LED sets are much expensive than the regular ones which is the main concern for us right now, but we will bring in the products soon enough," said Joshi.

The distribution of Konka refrigerator was ceased for the past few years but have recently restarted distribution by bringing in new models from capacities of 100 litres to 300 litres.
CHEAP AND BEST Konka products as compared to other brands are cheaper with warranty for each product. "We are the only Chinese brand that offers warranty on all of our products with free service and maintenance charges," said Joshi.

In LCDs, they have from 22-42 inches sets with a year of full warranty and they will also change the picture tube for free if it is found to be damaged. "If you have to buy the picture tubes it will cost you more than 50 per cent of the set price," said Joshi.

The price range for CRT sets starts from Rs 7,990-37,000 and in LCD it starts from Rs 32,500 95,000. "This price range is 20 per cent lesser than the other brands' and they rarely give any problem," claimed Joshi.

TACKLING DUPLICITY Fake products' business has not even spared Konka prod ucts in the market. "Duplicate products available in the mar ket with our brand names simi lar to ours have become the biggest business leakage for us," said Joshi. "We have appealed to policy makers but have not found a solution for the problem," said Joshi.

He advises to be sure that you are buying genuine Konka product, you should check that it has the real seal with the brand logo along with the war ranty card.

So, if you are looking for a durable but cheaper electronic good to complete your house hold necessities , you know which brand to opt for.

Spice Mobile with New Logo

Spice Mobile Ltd, one of India's leading handset brands, has come leading handset bra in the market with a new logo. The new logo will replace th old combination o five rainbow colour with a vibrant shade of yellow that symbolizes the energy and spirit that the company stands for.

The new brand identity is designed to differentiate the company and support its leading position in increasingly competitive market conditions in Indian and global markets.
s Chief executive officer and die rector of Spice Mobile Ltd Kunal Ahuja said the brand underwent an identity change to due to changing market dynamics and signify Spice Mobile's evolving relationship with its market, customers and other stakeholders Teletalk Pvt Ltd is the sole authorized distributor of Spice Mobile phones for Nepal.

Peace Brings More Tourists

The number of tourists arriving in Nepal from other countries has increased with the restoration of peace in the country.

In the last fiscal year, tourist arrivals through the Kailali customs point increased by 26.09 per cent compared to the preceding year.

According to records of the immigration office in Kailali, 58,000 tourists from other countries including Britain, America, Poland and Germany entered Nepal via the point during the 2065-66 fiscal year. The office collected revenue Rs 114,796 from them. The office issued visa for 15, 30 and 90 days to them.

Tourists from other countries pay $25 for 15 days visa and $40 and $100 for 30 days and 90 days, respectively. Most of the tourists seek visa for 15 and 30 days.

Only two tourists took visa for 90 days in the last fiscal year.
Officials said tourist arrival could go up in the far western development if publicity campaign for the region were to be intensified.


Govt Barking Up Wrong Tree, says VSDTC Study

Government-sponsored shortterm trainings are useless, a state study shows. A monitoring and evaluation report of Vocational and Skill Development Training Center (VSDTC) over 55 per cent of trained people are unemployed despite their skills and knowledge.

VSDTC's monitoring of 1,825 trainees of the present fiscal year shows that 252 people got jobs after training and 563 are self-employed. Five trainees got jobs overseas. VSDTC is a governmentowned training centre under the Ministry of Labour and Transport Management (MoLTM). The training centre trained 21,741 people last year. Around 6,358 people got 16 different types of training in the central office at Bhaisepati in Lalitpur alone.

VSDTC's officials are not satisfied with the performance. "We should focus on full-fledged skill development," said inspector Jeevan Bhandari. He urged for integrating marketing skill.

Section officer Sarita Prasai advised training those who can use it as a tool of life. "It should be need-based," she said. However, acting director general Varun Kumar Jha claimed VSDTC's trainings were not useless. "We need to improve standards," he said. VSDTC is planning to train 21,800 people under 18 different programmes this year.

VSDTC has been providing Employment Permit System (EPS) orientation training to EPS aspirants. The training is based on lifestyle -- language, culture, banking system and industrial safety -- and meant for people going to South Korea. Around 3,776 EPS aspirants have taken orientation here, said Bikash Mohan Joshi, VSDTC officer.

Garima Bikash Bank Turns Three

Garima Bikash Bank Ltd sucessfully completed its two years of establishment. According to a press statement issued on Friday, the bank has a total paid-up capital of Rs 106 million and a total credit flow of Rs 830 million.

Thursday, November 26, 2009

NEA Cash Counters Inadequate

Unavailability of cash counters in rural parts of Ilam district has caused much inconvenience to electricity customers.

Nepal Electricity Authority (NEA) has put cash counters only in Pashupatinagar, Fikkal and the district headquarters, forcing customers living in large swathes of the district to visit these places to pay electricity bills. The electricity authority has a reason for establishing cash counters only in the designated places.

"Apart from these four places, there are no banks in other parts of the district and the money collected from customers remains at risk," said Bed Prasad Sapkota, an official of the NEA''s Ilam branch office.

However, locals are not content with NEA's explanation. "Electricity network has been expanded to more than 36 VDCs, but cash counters are confined to only three places. This is unfair," said Krishna Rijal, a local of Mangalbare. While customers of the eastern parts come to Fikkal and Pashupatinagar, people of other areas go to the district headquarters to pay electricity bills queuing up for hours. NEA has 14,000 customers in Ilam.

ADB Aids Nepal to Promote Tourism

Asian Development Bank (ADB) has approved $57.5 million (around NRs 265.6 crore) in grants and loans to India, Nepal and Bangladesh to develop major tourism sites, including Buddhist sites under the South Asia Tourism Infrastructure Development Project.

The project will improve existing infrastructure and services and develop new ones in key tourism sites in the three countries. It is expected to be completed by September 2014.

Besides ADB support, governments of these three countries and the Organisation of Petroleum Exporting Countries (OPEC) Fund for International Development, will provide the remaining project cost of $89.5 million (around NRs 413.5 crore).

While India will receive a loan of $20 million equivalent from ADB's capital resources Bangladesh will get a $12 million on Asian Development Fund (ADF) loan and Nepal will get $12.75 million in grants and $12.75 million as loan equivalent, both from ADB's concessional ADF.

Gulfer Cezayirli, Principal Urban Development Specialist at ADB's South Asia Department, said tourism plays an important role in the regional economy and this project will benefit around 2.4 million people.

"The benefit to people will come through increased income and employment, health and environmental improvements and reduced travel time," he added.

Nepal Tourism Cuncil Convenes After a Decade-long Hiatus

National Tourism Council (NTC), after a hiatus of 10 years, conducted its sixth meeting today. The council was constituted on May 25, 1992 with a view to develop tourism as the backbone of the national economy and maintain coordination and harmony among various agencies related to tourism.

The main activity of the council is to solve problems faced by the tourism sector, issuing policy guidelines and reviewing pertinent plans and programmes. Speaking at the programme, Prime Minister Madhav Kumar Nepal insisted on regular functioning of the council. The PM said with Nepal Tourism Year 2011 approaching near, the council should conduct meetings at least twice a year. "There must be coordination between the different tourism sectors and a holistic approach for the development of tourism for its promotion and preservation," said PM Nepal.

National Tourism Council's first meeting was held on December 1, 1992. The second was held on June 12, 1994, third on June 12, 1995, fourth on December 26, 1997 and fifth on December 20, 1999.

During the programme, representatives of the tourism sector urged for peace and security in the tourism in dustry and called for declaring the tourism industry an essential sector.

Speaking on the occasion, Hotel Dwarika's chief patron Ambica Shrestha said the tourism industry must be declared an essential sector for its preservation. She also insisted on early construction of another international airport to avoid growing air traffic congestion. Meanwhile, Nepal Rastra Bank's former governor Deependra Purush Dhakal said that special attention should be given to the aviation sector as it can make or break the tourism sector. According to Dhakal, Nepal Airlines Corporation's decision to acquire two aircraft is appreciable but still not satisfactory, as only one wide body aircraft cannot fulfill the demand. He added that there was also the need for regular flights. Dhakal also insisted on the privatization of NAC for the development of the national flag carrier.

"Thanks to its clear policy, Bhutan is witnessing quality tourist arrival.
Here, there is a difference of thought among different ministries. There there must be unity in thought and policy for the overall development of tourism," said Suraj Vaidhya, representing Federation of Nepalese Chambers of Commerce and Industry (FNCCI). Talking about the present tourism scenario, MoTCA secretary Nagendra Prasad Ghimire said that in 2008 the total tourist arrival was 500277 and total income generated was US $352 million. "The tourism council should develop the civil aviation region by increasing the capacity of Tribhuvan International Airport. He also called for solving the airport congestion problem, granting primary concern to the construction of fast-track and participation of the private sector in the management and extension of the airport.

Monday, November 23, 2009

Rastriya Banijya Bank's Q1 Profit

Rastriya Banijya Bank said it recorded a net profit of Rs 319.1 million in the first quarter of the current fiscal year. The bank said its deposits have gone up by 15.68 per cent from last year to Rs 65 billion and loans went up by 16.37 per cent to Rs 31.14 billion. Also, the investment of the bank reached Rs 18.88 billion.

Prabhu Finance's Right Share

Prabhu Finance Company during the fiscal year 2008/09 registered total deposit of Rs 2.5 billion, credit and investment of Rs 2.51 billion. The company posted total operating profit of Rs 23.2 million, an increase of 40.49 per cent compared to the same period last year. Prabhu's fourth AGM has decided to issue rights shares in a 2:1 ratio and distribute 10 per cent cash dividend to its shareholders.

Lord Buddha Finance Turns Three

Lord Buddha Finance Ltd has completed three years of establishment. According to a press statement, the company registered total deposit of Rs 520 million, total credit and investments of Rs 500 million. The company has also launched its new scheme `Senior Citizen Account' with nine per cent interest rate.

NCAA Election

Bhaskar Singh Lala was elected president of Nepal Chartered Accountants' Association (NCAA). The new panel has Bharat Rijal as vice-president, Achyut Raj Joshi as general secretary, Vishnu Bhandari as treasurer and Sunil Jakibanja, Lekhnath Koirala, Jyoti Prakash Pandey, Piyush Ananda, Deepak Sharma, and Jitendra Rijal as members, NCAA said.

G Five Cell Phone

G Five Mobile has introduced its range with TV facility. The models available are K300, K600, Mini E71 and N79. They are enabled with all modern features like bluetooth, HD camera, MP3/MPS, FM radio and support memory cards. Call Mobility Pvt Ltd -- sole authorised dealers of G Five mobiles in Nepal -- has launched these phones in the valley. Users can also use two GSM SIM cards in this phone series. The company is giving a one-year warranty on both the hardware and the software and a six-month warranty on the battery. The series is priced at Rs 6500.

men's Wear Range

Galleria, a clothes KATHMANDU: Galleria, a clothes shop at City Center, Kamalpokhari, has introduced world renowned brands of men's ware ranging from Pierre Cardin, Ted Lapious and Guy Laroche. Galleria is a authorized showroom of the brands

MoIC to Introduce Clean Feed in Foreign Channels

Ministry of Information and Communication (MoIC) is planning to introduce clean feed in transmission of foreign television channels in Nepal. Clean feed is the transmission of broadcast content without advertisement.

MoIC has prepared a regulation to regulate downlink and clean feed, said ministry secretary Sushil Ghimire in an interaction here today. "The new regulation has clearly mentioned that the foreign pay channels cannot transmit advertisements in Nepal," he said. Around 60 pay channels are aired in Nepal by cable operators and the popular ones are: Star, Sony, Zee, Set Max, Discovery and National Geographic. "After the enforcement of clean feed policy they should have additional feeder for Nepal," he said. South Asian nations like Pakistan, Sri Lanka, Bhutan and Bangladesh have adopted clean feed policy for foreign broadcasters. Australia has adopted voluntary clean feed policy and generated Australian $48 million revenue from local advertisements.

The advertising industry has been seeking a clean feed policy for years. "If implemented, an additional Rs 1.5 billion advertisement market will be created in a year," said Nirmal Raj Paudel, president of Advertising Agencies Association of Nepal (AAN). The advertisement market is Rs 3 billion.

Clean feed is a tool to stop foreign influence also. "We need this to preserve our culture and language," said Prabal Raj Pokhrel, professor of journalism at Tribhuvan University. "It will eliminate dubbing Hindi language advertisements in Nepali," he said adding most of such advertisements looks ridiculous and lack lingual sweetness.

AAN has presented a fourpoint suggestion to implement clean feed policy here. The suggestions are -- respect for law of the land by foreign media, pay channel cannot take fee from viewers if they want to transmit advertisement, nonpay channel should have right to transmit advertisements and dubbing of foreign language advertisements must stopped.

Though MoIC has finalized the regulation regarding clean feed, it has not presented in the cabinet yet. "We will send it to the cabinet soon," MoIC secretary Nepal said.


Komatsu Extends its Warranty

Continental Trading Enterprises Pvt Ltd, authorized distributors of Komatsu brand mining and construction equipments for Nepal have extended the warranty on their machineries. In the 20th year of operations in Nepal, they are offering warranty up to 4,000 hours (2 years). Previously, the company was providing only 2,000 hours or one-year warranty. This offer is valid for all ranges of Komatsu construction and mining equipment. Warranty can be claimed from Continental Komatsu Center in Dhumbarahi and its dealers Raut Construction Services, Biratnagar; Fewa Construction, Pokhara; Pathak International Trading Concern, Butwal and Ratna Laxmi International Pvt Ltd, Nepalgunj.

Thursday, November 19, 2009

BG Vehicle Care Products

BG Nepal Pvt Ltd has introduced BG brand vehicle care products in Nepali market on Sunday. According to BG Nepal, BG prod increasing mileage, reducing emission and made easy start up. BG products are made in USA since 1971 and it is also popular in South Asia. Motor companies like General Motors, BMW, Ford, Volkswagen, Mitsubishi, TATA and Maruti are using BG products because of its quality.

LG-GM 730 Mobile in Market

LG Electronics has launched LG-GM 730 mobile sets in Nepali market with a smart slogan, Joy, now in a smartphone. The all new LGGM730 is LG's exclusive S-Class UI and makes Windows Mobile's capabilities more intuitive, faster and easier to use.

With effortless access to functions, easy mail and networking that puts you on the map and cascading windows for convenient multi-tasking, Joy is in your hands.

The mobile is available in Nepali market for Rs 46,900 along with a 2 GB Memory card, data cable and stereophonic headset worth Rs 4,500 free.


Chamber's Meet

A 23-member delegation of Narayangadh Chamber of Commerce and Industry was welcomed by Lalitpur Chamber of Commerce and Industry here on Monday. LCCI president Naresh Kumar Shrestha said such visits will boost relations between the chambers.

Crystal Multipurpose Cooperative in Profit

Crystal Multipurpose Cooperative Ltd has earned Rs 27 million in the fiscal year 2008-09. The cooperative collected deposit Rs 33.05 million and invested Rs 228.6 million during the period. The cooperative was established nine years ago by British Gurkhas.

RBB in Profit

Rashtriya Banijya Bank (RBB) in the first quarter of this fiscal year made net profit of Rs 319.1 million. It saw a 15.68 per cent increase in deposits and anticipates that deposits will reach Rs 65.65 billion. In the loan section there was an increase of 15.37 per cent.

Yamaha Care Camp

Morang Auto Works, sole authorized dealer of Yamaha brand motorcycles for Nepal, has announced a Yamaha Care Camp for 150cc segment Yamaha motorcycles from November 17-21 at Bhrikutimandap here. The care camp will prove free check-up, tube seal liquid, wash and 10 per cent and 20 per cent discount on spare parts and apparel.

StanChart in New Road

Standard Chartered Bank Ltd opened a new branch in People's Plaza at New Road to provide banking services to the Small and Medium Enterprises segment. New Road is a commercial hub of the capital. Bank CEO Sujit Mundul inaugurated the branch on Monday. StanChart has 18 branches and 18 ATMs across the country.

ICRA, HIFL ink CRA Agreement

ICRA Ltd, India's leading credit rating agency, and Himalayan Infrastructure Fund Ltd (HIFL) today signed a joint-venture (JV) agreement to establish a credit rating agency in Nepal.
ICRA also appointed Deepak Kafle as Resident Director of its Nepal office. The Nepali financial market does not have credit rating services.

ICRA's vice-Chairman and group CEO PK Chaudhary and HIFL chairman of HIFL Prithvi Pandey signed the memorandum of understanding (MoU) amid a function here. ICRA has extensive experience in credit rating of the Indian corporate world since 1991, when India was in financial reform and early stages of globalization.

The MoU has been signed on the same conditions for Nepal which India had experienced two decades ago. "The view that a credit rating agency must be integral to the reforms process has gained a foothold in Nepal.
We see our JV as both promoting the idea and benefiting from it," Choudhury said. The Nepali corporate world is rapidly changing toward modernization and globalization.

"The entry in Nepal once again highlights ICRA's ability to think beyond borders. The MoU with HIFL is important not only because it gives us a direct offshore presence, but also the increasing acceptance of such expertise built up in India in the area of credit rating within a relatively short period of time. It also reaffirms our confidence in the future growth of the economy of Nepal," Choudhury added. Echoing Choudhury's sentiments, HIFL chairman Pande said, "The proposed JV is an important initiative for growth and professionalizing of the financial system in Nepal."

he said he was confident that the credit rating agency would benefit the country.

ICRA's venturing into Nepal and its increasing footprints beyond the Indian borders underscores the growing international acceptance of an agency that is already a leading provider of credit rating and investment information services in India. The Indian company has also helped in establishing rating agencies like CRAB in Bangladesh, CRC in Kuwait and BCRA in Bulgaria.

Electro Tech 2009 Expo to be held in December

Nepal Electrical Association is geared up for the fifth international electrical-electronic products' exhibition and symposium "Electro Tech 2009" which will be held from December 1 to 5.

The exhibition and symposium is targeted at making people aware of electronic items available in the world market as well as the importance of electronic usage while conserving energy methods.

President and coordinator Nepal Electrical Association Govinda Prasad Kandel said 125 of the targeted 175 stalls have already been booked "This is not going to be a buy and sell expo. Instead we are aim ing at providing awareness to people about the impor tance of energy saving and ' are going by the motto - Save energy, protect the environment," he added.

Around 45,000 people are expected to visit the expo over a period of five days. Visitors can view products and place a booking but the products being showcased will not be put on sale.

The association has de cided to hold seminars on alternative energy as well as power saving methods. The expo will be held at Bhrikuti Mandap's exhibition hall.


UFTAA Congress, NATTA Travel Mart in November

United Federation of Travel Agents' Association (UFTAA) congress will be organised in Nepal for the first time from November 20 to 24. The 43rd UFTAA congress will draw more than 100 participants from 81 nations.

Speaking at a programme, Nepal Tour and Travel Agents (NATTA) president Ram Kaji Koney said that 125 participants from 45 countries have already signed up to participate in the NATTA Himalayan mart. There will be stalls of different participants at Bhrikutimandap here with their own separate B2B sessions between the buyers and sellers. The meet will also prepare a final draft paper for South Asia Tour and Travel Agents' Association Forum, said Koney. The 43rd UFTAA congress is being held with the joint effort of Nepal Tourism Board (NTB) and Nepal Airlines Corporation (NAC).

NTB chief executive officer Prachanda Man Shrestha said that another event -- National Tourism Fair -- will be held from November 23 to 25. Shrestha said the tourism fair will help boost internal tourism too by bridging the gap between urban and the rural tourism. "Problems will be highlighted. There will be exchange of ideas for solutions too," he said.


Yeti Air's New Destination

Yeti Airlines has unveiled Dhangadhi as its new destination and added supplementary flights to Janakpur and Bhadrapur. It has planned to boost its domestic network with the launch of scheduled flights to Dhangadhi. From November 16, it will start its daily once a day flight from Kathmandu with Jet stream aircraft with 29 seats. Yeti operate extra flights to Janakpur and Bhadrapur from November 16. Two daily flights to Janakpur and three daily flights to Bhadrapur.

IME Health Camp

In keeping with its community development initiatives and in its endeavor to give back to the society at large through welfare activities, International Money Express (IME) Pvt. Ltd. held a one-day free health check-up camp at Bhaleshwore Secondary School in Malpi VDC, Panauti of Kavre district on Saturday. The health check-up camp was held in association with the Lions Club of Kathmandu-Ashoka, Ananta and Abishekh.

Prudential Insurance's Premium Collection Reach 137.2 Million

Prudential Insurance Company Ltd during 2008-09 made premium collection Rs 137.2 million and total operating profit Rs 17 million. It saw an increment of 27 per cent and 70 per cent in premium collection and operating profit, respectively compared to the same period last year. It plans to distribute 5 per cent cash dividend.

Remittance Tie-up

Crystal World Wide Money Express Pvt Ltd tied up with Crystal Remit Worldwide Sdn Bhd (CRW) of Malaysia to remit money to Nepal. Jivaprabha Jayaraj, chairman of Crystal Remit Worldwide Sdn Bhd, and Tanoj Raj Joshi, executive director of Crystal Worldwide Money Express Pvt Ltd signed the agreement

Butwal's Mission Development Bank gets Letter of Intrest

Butwal's Mission Development Bank Ltd on October 21 received its Letter of Intent (LOI). After its registration at the Company Registrar Office, the bank will start its banking operation, read a press statement.

Commerce Chamber's New Office-holders

Ram Kapur Saha was elected president of Jaleshwor Chambers of Commerce and Industry.
Dipu Saha, Kripa Shankar Saha and Gopal Mahato are vice-president, general secretary and treasurer, respectively. Members are Shashi Gupta, Brij Mohan Saha, Binod Bahadur Saha, Ram Chabila Chaudhary, Sudhir Saha, Birendra Saha, Laba Kumar Singh, Bhola Mehatari, Ram Lakhan Chaudhary and Baidhya Nath Saha. Ajit Chaudhary was elected secretary.

NBL in Policy Dilemma

Improve your financial status: NRB governor

Nepal Bank Ltd (NBL) is in a policy dilemma regarding financial structure -- whether to privatize or run under publicprivate partnership. The government has 41per cent stake in NBL, the country's oldest bank established in 1938.

Regulator Nepal Rastra Bank (NRB)is looking for a new strategy for NBL to revive it as a competitive modern bank, said NRB governor Bijaya Nath Bhattarai."Even NRB is not sure what measure to take," he said, "Issue of new shares or inviting new stakeholders can be options." Without strong effort NBL's status will not change soon, he added.

NRB is managing NBL since July 27, 2007 after five years of foreign management. NBL had been handed over to foreign management in 2002 when the bank got ruined due to billions of rupees in bad loans. NRB has invested Rs 2.55 billion to improve NBL's financial status under the Financial Sector Reform Project (FSRP) which ends in 2011.

"We are open to all alternatives as the FSRP deadline is nearing," Bhattarai said adding NBL's new management must work hard to turn its negative capital into positive. NBL needs Rs 8.87 billion to become capital positive. NBL has bad loan Rs 6 billion reduced from Rs 8 billion in last eight years.

Weak decision-makers, inefficient employees and government interventions are the causes behind NBL's failure.
Paid-up capital is another challenge -- the bank has paid-up capital Rs 380 million which is too low to compete with other banks having Rs 2 billion.

NBL needs strong management, a professional chief executive officer (CEO) and increase in paid-up capital, employee unions said. "If we want change, the CEO must have capacity to utilise employees," said Semanta Kumar Gauli, union representative. The union has suggested revaluation of property to turn the negative capital to positive. "If it is possible, I will do it," respond CEO Dr Binod Atreya.

NBL had gained Rs 79.4 million and Rs 59.26 million as net and operating profit in the fiscal year 2008-09 respectively.
The bank has allocated Rs 80 million as bonus of employees.
It's collection is Rs 44 billion and invested Rs 21 billion which are seven and four percent of total deposit and investment of Nepali banks.

Meanwhile, NBL has started reviving its strength through training employee and reestablishing branches. Sundar bazaar branch of NBL is reestablished as 106th branch on the occasion of 73rd anniversary of the bank today while ATMs are added in Kalimati and Jawalakhel branches.
NBL starts e-banking services (SMS banking and Internet banking) and education loan service from today. Likewise, NBL honored its 11 branches from best branch award amid a function.


Monday, November 16, 2009

GEM OF PLASTICWARE

EVER SINCE the discovery of plastic, it has changed the way we lead our lives.
Though considered one of the major hazards for environment, we just cannot ignore plastic. Unless a very viable solution to plastic and plasticware is found, we will not be able to lead lives free of plastics.

Plastic is popular because it is durable and lightweight and has no problems like rusting or staining usually found in metal products. Among the numerous plastic products available in the market, the Nepali brand Gem Plasticware has been able to carve a niche for itself as a durable product that gives value for money .
Pioneer in its field "When we started, there were no prominent plas ticware manufacturing companies besides Nepothene, which could not give consistency to their production," said Kabindra Shrestha, Chairman and CEO of Gem Plasticrafts Pvt Ltd.

The company was established on May 15,1986 at Basundhara, Maharajgunj with only one machine in their factory after get ting loans from NIDC (Nepal Industrial Development Corporation).

"During that time, to gain the full credibility for taking loan was very hard. Sometimes you even had to wait two to three years for the loan grant and the accessibility of three-phase electricity and the connecting pillions had to be managed by ourselves. In general, opening a factory was not that simple as it is today," shared Shrestha.

Starting with the production of two products -- buckets and bowls, today they have 150 products in various sizes (litres). According to Shrestha, today their products are distributed all over Nepal through their company's depos located in various parts of the country .
Quality uncompromised "Plasticware don't have any specific class users. They are necessary to all classes from lower to upper, and moreover who has got all the money in the world to own every houseware applia n c e s made of copper and silver?"said Shrestha "From hotels to homes, our products are used by all and our products boast of quality right from the establishment of out company," affirmed Shrestha.

For the manufacturing of Gem plastic products, all the essential raw materials like high density polyethylene, poly propylene and colours are brought especially from Saudi Arabia, the US and Europe. "Saudi Arabia is our main raw material exporter," he emphasised.
Virgin Gem products According to Shrestha, the thickness of a plastic bucket does not guarantee its durability. "Generally people have been deceived by this," he said. According to him, the thicker products signify the highest possibility of mixing of raw materials which will easily end in breakage.

"Our products are much lighter because of the composition of virgin raw materials," said Shrestha. "Virgin in the sense that there is no mixing of raw materials which indicates the product being fully authentic and pure in the quality standards," he added.
Short but intensive process Plasticware products does not involve a long process, but the setting phase is considered to be the most important and delicate part of the whole process.

"In this phase, everything has to perfect -- from the applied temperature to the clamping of the semi prepared plastic products," said Shrestha.

All the required machineries in the factory are brought from India, Hong Kong and Japan. The moulds or the apparatus that determine and modify the size and shape of the products are one of the most essential equipment in this production of plas ticware. For every size, single mould is required for the process to complete.

"This is one of the reasons why this plastic manufacturing business is quite expensive and rather risky . If the size of a lot manufactured through a mould goes wrong or doesn't succeed in the market, we might be in financial jeopardy," said Shrestha.

However, he said that they have been experimenting with new products and a lot of time they have gained good response, with a downfall here and there.

Shrestha doesn't seem too optimistic about extending products lines or include any innovation in their production line citing the political situation of the country.

"It is not just us, every company is living this trauma," said Shrestha. "We will be consistent in what we were and are doing and see in the coming future what sort of amicable working environment will be created in the country," said Shrestha.

Annapurna Finance Company's Bonus Share

Annapurna Finance Company (AFC) is issuing bonus shares in the ratio of 10:1. The decision was made during the 16th annual general meeting (AGM) of the company held here on Saturday. AFC, which got a letter of praise from Nepal Rastra Bank, has nine branches at different places. AFC chief executive officer Krishnaraj Lamichhane work is on for opening branches in Kathmandu's Chabahil, Samakhusi and Kalanki. After the company issued rights shares in the ratio of 1.6:1, its paid-up capital reached Rs 70.7 million.

Nepse Returns to Former Bearish Mode

The capital market took a bearish turn this week after a week of bullish trend. The Nepal Stock Exchange (Nepse) index was in a bearish trend since September except between October 30 and November 5. The index had reached 587.21 points after gaining 17.57 points last week.

Between Novemvber 6 and 12, Nepse experienced downward trend -- losing 21.35 points. The trading floor opened at 587.21 points on Sunday which gradually fall to 565.86 points on Thursday. The biggest losers this week are the commercial banks.
Their indices dropped by 30.29 points from 570.39 points to 540.10 points.

Shares of banks, finance companies and development banks fell this week.
Nepse index of finance companies fell by 10.42 points close on the heels of development banks. The development banks' index fell by 11.69 points to stop at 626.42 points. Hydropower sector index also went down by 13.99 points.
Fall in major sectors reduced the float index size by 2.05 points.

Shares equal to Rs 311.16 million were traded this week in 5,408 transactions of 6,02,600 units. The trading amount was 4.66 per cent lower than the Rs 326.88 million of the previous week. Class `A' companies trading occupied 54.90 per cent of trading, with Rs 171 million.

Prime Commercial Bank ranked top in amount.

Sunday, November 15, 2009

Rs 34.99 Billion Remittance

Nepal received Rs 34.99 billion in the first two months of the current fiscal year. "Under transfers, workers' remittances increased by 19.7 per cent in comparison to the growth of 59.4 per cent in the same period last fiscal year," said the central bank report.

Whopping Rs 556.6m Budget Surplus in Q1

In the first two months of the current fiscal year 2009-10, government budget surplus stood at Rs 556.6 million in comparison to a surplus of Rs 3.4 billion in the same period last year.
However, the government spending has gone up by 69.8 per cent to Rs 26.6 billion in comparison to an increase of 40.4 per cent last year. "The increase was mainly on account of a rise in the growth of recurrent expenditure," said the current macroeconomic situation based on the first two month's data of the current fiscal year published by the central bank.

"Recurrent expenditure rose by a whopping rate of 108.1 per cent to Rs 17.6 billion, compared to a moderate rise of 11.9 per cent to Rs 8.4 billion in the same period last year," the report said attributing the rise mainly to an upward revision in the salary and allowances of the civil servants and teachers.

Meanwhile, revenue mobilisation also grew by 54.5 per cent to Rs 22.6 billion compared to an increase of 17.5 per cent in the corresponding period of the previous year. The government's firm commitment to control the leakage in the revenue as well as tax administration reforms in conjunction with increasing import and consumption by virtue of high remittances inflow contributed to such an increase in the revenue mobilisation, said the report.

The government received foreign cash loans amounting to Rs 158.9 million and foreign cash grants amounting to Rs 2.72 billion, where as it had received foreign cash loans of Rs 625.1 million and foreign cash grants of Rs 2.12 billion in the same period of last fiscal year.

However, exports fell by 15.2 per cent in contrast to a rise of 35.7 per cent in the same period last year. "Of the total exports, export to India declined by 13.2 per cent in contrast to a rise of 6.7 per cent. Exports to other countries plummeted by 17.4 per cent as against a rise of 94.7 percent in the same period of last fiscal year," Nepal Rastra Bank said.

The decline in the exports to India was attributed to the decline in the exports of readymade garments, zinc sheet, thread, copper wire rod and aluminum section, among others.
Similarly, exports to other countries went down due to decline in the export of woollen carpets, readymade garments, pulses, tanned hides, silverware and jewelleries.

At the same time, total imports expanded by 20.3 per cent compared to a higher growth of 45.5 per cent in the corresponding period of the previous year.
While imports from India rose by 17.3 per cent in the review period compared to a growth of 35.4 per cent, imports from other countries rose by 24.2 per cent compared to a significant growth of 60.7 per cent during the same period last year.

The Balance of Payment deficit also doubled to Rs 3.76 billion against the deficit of Rs 1.89 billion then last year.

Union Chief Sues

Jagadamba Prasad Chaudhary, chairman of Free Sugar Mill Workers' Union at Mahalaxmi Sugar Mill in Kapilvastu, has filed a case in the labour court, Butwal, against what he called unilateral and biased retirement handed him by the factory management. The management committee of the mill has been made the defendant in the case. The mill has been closed for the past three weeks due to disputes between the workers and mill management committee after the committee gave retirement to four persons including Chaudhary. Three of them have been reinstated in their jobs.

New Airlines

Assurance Life International Ltd within 2010 is set to launch Unity Airways in Nepal. Bishnu Chhetri, managing director of Unity Group at a press meet informed about an agreement made between Air Asia and Unity Group.

According to Chhetri, if the government creates an effective environment for foreign investors willing to invest in hydropower here, Unity Group and Air Asia can make investment for a 7 MW hydropower plant.
He also spoke about his interest in investing in a metro train system and air ambulance here.

NIC's Three Branches

NIC Bank Ltd has added three branches in its network opening branches in Kritipur, Samakhushi and Satdobato of Kathmandu valley.

Bnak's chairman Jagadish Prasad Agrawal inaugurated the branches amid a function on Thursday. New branches will provide all modern banking facilities and services including trade finance, remittance, business banking, ATM and SMS banking. NIC bank has planning to open three branches in Teku, Malangawa and Mahendranagar in near future.

Celebrate, Great Wall Motors here!

Himchuli Auto International Pvt Ltd, Basundhara, has launched a new brand of Great Wall Motors (GWM) in the market. The company has recently introduced Great Wall Motor Hover 2.5 TCI CC6460KM75 in the market.

According to the company, with the growing demand for Chinese cars and consumer attraction for them the company has brought Hover CUV 2.5 TCI with both luxury and super luxury models at a very competitive price.
Both the models have 195 mm ground clearance, tiltable column steering and power steering. Hover CUV has a two-year warranty/50,000 km run and 12 free servicings.

It has the characteristics of high power and low fuel consumption.
Its engine has max power (kw/rpm) of 80/3600 and max torque (nm/rpm) 300 +_ /1800~2400. Hover CUV 2.5TCI is available in six colours -- Noble Grey, Milky White, Universal Blue, Sky Silver, Rose Red and Pearl Black.
Hover CUV in super luxury has special features like sunroof, leather seats and electric seat adjusting.

The outside rear view mirror defrosts and is electrically adjustable.
The Hover CUV is equipped with a GW2.5TCI Germanymade Bosch diesel engine. The model has combined crystal diamond headlights. The showroom for Great Wall Vehicles is located at the automobile hub at Thapathali with its service station and spares parts at Basundhara in Dhapasi.

NCC Team Calls on Ambassador

In a meeting with representatives of Nepal Chamber of Commerce (NCC), Yogendra Dhakal, Nepal's ambassador to Australia, urged the private sector to participate in the celebrations of the 50th anniversary of Nepal and Australia diplomatic relations.

"This is the most appropriate time to promote Nepal and create its identity in Australia, so that it can help the Nepali diaspora there," said Dhakal during the meeting.

He added that with the participation of the private sector there, it can also create a good environment for the economic development of Nepal.

NCC president Surendra Bir Malakar said on the occasion that there has been no remarkable cooperation from Australia to Nepal.

Malakar urged Dhakal to create a congenial situation by launching effective lobbying so that it enables the private and public sectors of both countries to bridge the trade deficit between Nepal and Australia.

Citizen Bank's ATM at Birtamod

Citizens' Bank International Ltd (CBIL) started its ATM counter service at Birtamod. According to a press statement, the bank has 17 branch offices. The bank plans to establish 30 branches within two years.

NTB Promo for Nepal Tourism Year 2011

Nepal Tourism Board organized "Naturally Nepal- Nepal Tourism Year 2011" presentation at the World Travel Market 2009, on November 10. Speaking on the occasion, Jhabindra Aryal, Charge De' Affaires, Nepal Embassy, London, highlighted the historical bilateral ties between Nepal and the UK, expounded the attractions of Nepal as a tourist destination and solicited cooperation from all the present audience to help in the endeavour of establishing and enhancing the destination image amongst potential visitors.
On the occasion, British balloonist and sktdiver from Mt Everest Leo Dickinson and Richard Kirtley, organizer of Everest Test 2009 cricket match, spoke about their exciting experiences in Nepal.

Qatar Air on Winning Streak

Qatar Airways continued its award-winning streak as the five-star ranked carrier was named the world's leading airline in Business Class for the second year running.

The airline, which recently began flights to Amritsar and Goa in India, continues its rapid expansion next month with the launch of scheduled services to Melbourne -the carrier's first point in Australia, from December 6 last. Initially, a tri-weekly service, Melbourne operations will move to daily in January with plans to launch flights to Sydney.

Qatar Airways operates a young and modern fleet of 71 aircraft serving 84 diverse business and leisure cities across Europe, the Middle East, Africa, South Asia, the Far East and North America. It currently has outstanding orders for more than 220 aircraft worth over $40 billion. Almost 1,000 decision makers from the global travel and tourism industry gathered for the 16th World Travel Awards, held at the Grosvenor House Hotel in central London.
Qatar Airways once again beat stiff competition to win the title as decided by thousands of travel professionals from over 180,000 travel agencies, transport companies and tourism organisations in over 160 countries worldwide.

Hailed as the world's largest and most important international awards for the travel industry, the World Travel Awards aims to encourage excellence, and high standards.

G-Five Phones

Call Mobility Pvt Ltd has launched G-Five mobile phones along with a one-year guarantee on both its hardware and software. According to a press statement, users can operate both CDMA and GSM networks at the same time. Users can employ the camera for both stillvideo recording and still- photography. Bluetooth connectivity, expandable memory, MP3/MP4/3GP and FM radio are the other features. The phones are available in cool black and red colour combinations with free data cable. The maximum retail price of the phone is Rs 7800.

Growmore IPO Soon

Growmore Merchant Banker Ltd has appointed Araniko Development Bank Ltd as its issue manager to manage the public issue of 9,80,000 ordinary shares each at Rs 100, which will be available for subscription to the general public. According to a press statement, the issue agreement has been signed by the executive director of the bank, Narayan Kapoor Pathak, and the general manager of Growmore, Kabindra Dhoj Joshi, on Wednesday.

Mero Mobile Scheme to Extend Coverage

With Mero Mobile's Gift a Gift campaign, mobile operator Spice Nepal is extending across the country.

Spice Nepal CEO Pasi Koistinen said, "We are heartened by the response to our Gift a Gift campaign."

Since May there has been a 16 per cent increase in the proportion of Nepal's population coming within Mero Mobile's operating area -an extra 4.5 million people -- and a 7.5 per cent increase in area of the country covered. It covers 60 per cent of the population and around 22 per cent of total geographical area. Till September-end, Spice Nepal had 1.8 million subscribers.

Koistinen added, "Across Nepal, 400 professionals are working to instal new towers and network equipment."

Under Gift a Gift,customers buying a Rs 100 Mero Mobile recharge card from a participating outlet also get one prepaid SIM card with Rs 15 talk time.

KIST in Tulsipur

Kist Bank Ltd on Monday started its banking operations at Tulsipur of Dang district. According to a press statement, it is the 40th branch office of the bank. The bank is planning to establish 50 branch offices within the present fiscal year and it will start its banking services at Gongabu in Kathmandu and in Hetauda of Makwanpur.

Tuesday, November 10, 2009

CNI for Swift Industrialisation of Nation

Entrepreneurs associated with the Confederation of Nepalese Industries (CNI) urged for a major role of the Ministry of Industry (MoI) in the rapid industrialization of the country. Without a strong MoI industrialization is not possible, said CNI president and Constituent Assembly member Binod Kumar Chaudhary in an interaction here today.

CNI is feeling that the Ministry of Finance (MoF) is dominating MoI, he said. "The new industrial policy should break old traditions," he said. MoF's economic laws like value added tax (VAT), excise duty, customs duty and income tax are hampering industrial growth. "The new industrial policy should guarantee facilities available in India and China," said Chaudhary. India and China have been providing special discount in taxes for industries. The rate of tax exemption varies from industry to industry. Export-oriented and cottage industries are getting more benefit from these two governments.

CNI's suggestions include a target-based industrial policy along with other ideas. "We should target to double our industrial production in five years," Chaudhary said. For this, CNI has asked government to provide security and power supply as per demand.

Land acquisition is another issue where CNI is seeking the government's direct involvement. Indian provinces like Bihar and Uttaranchal of India are providing land for industrial endeavours through official acquisition process. CNI also urged MoI to conduct industrial census every five years. "We are ready to help," Chaudhary said.

According to CNI, the new industrial policy should make necessary provisions for high-seas (trade of goods when it is in the ship at sea), economic diplomacy for export promotion, timely revision of regulations, sick industry policy and `no work, no pay' provision. CNI has proposed five per cent customs duty on raw materials, 10 per cent on semi-processed and 15 per cent on products manufactured in Nepal.

Moreover, CNI has proposed three -- general, product specific and geographical -- kinds of economic zones. In income tax, CNI has proposed 20 per cent tax limit.
Industries operating under the new policy should have 50 per cent tax exemption for five years.

CNI has also sought its representation in the high-level investment board. The government has set up a high-level investment board under Prime Minister Madhav Kumar Nepal.

Addressing CNI members, MoI secretary Pratap Kumar Pathak said that the ministry will develop the Department of Industries (DoI) as a problem solving body as soon as possible. "DoI will hear the problem in the field and solve it in time thereafter," he said. He promised to incorporate CNI's suggestion in the industrial policy.

Minister for Industry Mahendra Prasad Yadav said political stability was a must for industrial growth. "However, MoI cannot wait for it. We will do whatever is possible in the present conditions," he said. He promised to include CNI's suggestions for the new policy. Development of the industrial sector is my prime concern, Minister Yadav added.

NRB GUV Calls for Productive Investment

Nepal Rastra Bank (NRB) governor Bijay Nath Bhattarai today said that the Nepali banking sector should invest in productive sectors rather than in non-productive sectors as investing in the latter could lead to systemic risks for financial institutions.

Speaking during a social dialogue programme on `Working together to build stable and sustainable financial sector' organized jointly by Financial Institute Employees Union of Nepal (FIEUN) and Nepal Bankers' Association (NBA), he said "The financial institutions of the country should come up with innovative investment strategies for sustainable development of the banking sector."

"After attaining the membership of World Trade Organization (WTO), the Nepali financial sector should work hard to compete with foreign banks and maintain standards in accordance to it," said Bhattarai adding that NRB is ready to facilitate innovative concepts of the banking sector.

He added that in a country like Nepal where resources are very limited the service sector has to be stronger. At the same time, he said that all sectors should work together and the social dialogue conducted today would change the image of trade unions for the positive.

"It is thought that trade unions are set up to create difficulties in the management of any organization. But, if there is constant dialogue between the management and the trade union members then the problems of this sector could be identified for sustainable development of the banking sector," said Finance Ministry secretary Rameshwor Khanal.
He added that workshops like this would be beneficial in highlighting the positive impact of trade union movements in future as well.

Khanal added that banking sector should invest to develop the entrepreneurs rather than promoting certain non-productive sectors.

He said that the real estate bubble could burst at any moment as Nepal will not be left untouched by the global recession and the country's financial sectors have to be prepared before it's too late. "Trade unions are the sectors that can give response to the financial crisis," said general secretary of UNI NLC Shankar Lamichhane adding that the implementation of the policy was as important as the indications of the crisis.

SASK regional coordinator Dr Sharan KC said that the financial institutions of Nepal should come up with different partnership strategies.

He also promised to facilitate between Finland and the trade unions of Nepal if necessary in future. Nepal Trade Union Congress (NTUC) president Laxman Basnet said that financial development would be possible only when there is political stability.

He urged the financial sector to develop rural banking for the overall development of the banking sector.