NT Balance Transfer Service Resumes

Nepal Telecom (NT) has resumed its balance transfer service that had halted due to technical glitches. Due to technical problem, NT halted balance transfer facility in GSM prepaid mobile service halted since July 7. NT users were suffering due to the message delivery system also. Users were faced with the problems like the same message delivering a number of times and some messages not getting delivered or stored.

Hello Nepal Service Launched

Nepal Satellite Telecom (NST) Pvt Ltd soft-launched its GSM service today.

Launching the Hello Nepal brand, former prime ministers Girija Prasad Koirala and Pushpa Kamal Dahal `Prachanda' made a conference call from Kathmandu and Rolpa. CPN-UML general secretary Ishwor Pokharel also made a conference call from Dang.

The new telecom service provider has promised to provide voice and data services. According to NST executive director Ajeya Raj Sumargi, NST will start its operation in the rural areas and will launch its GSM service within a year in Kathmandu Valley.

NST, whose number starts with 963, will start its services in 273 village development committees (VDCs).

Mukti Shree Telecom (Nepal), Sewa Telecom Pvt Ltd (Bangladesh), Pakistan Mobile Communication (Pakistan) and Air Bell Company (Cyprus) are the major investors in NST.

It has Basic Telecommunication Service license under which it also has license for limited mobility service -- only for landlines.

NST got its license on February 17, 2008 and according to the licence it has to start its services from the Mid-western region, followed by Far-western Region, Western region and only after that it can bring its service to Kathmandu Valley. It is also planning to bring international gateway, CDMA and landline PSTN services in the near future.

Meanwhile, there are already three players in the market -- Nepal Telecom (NT), Spice Nepal and United Telecom Ltd (UTL). Among them, NT plans to distribute 2.2 million GSM mobile SIM cards in the fiscal year 2009-10, increase the number of CDMA customers to 0.4 million and add 50,000 more land line services. According to NTA data of last May, Spice Nepal has service penetration of one in 100 population. Spice has market share of 40.27 per cent and NT 59.73 per cent.

Nepal's fixed line base reached 812,615 in August and the number of mobile users topped 5.59 million.

Nepal Telecommunications Authority (NTA) has published its latest `Management Information System' report for the period ended 14 August 2009, showing the country was home to a total of 812,615 fixed line users. Of the total, 563,127 lines were PSTN connections for incumbent operator Nepal Doorsanchar Company Limited (NDCL, or Nepal Telecom) while the remainder were wireless in the local loop (WiLL) connections for Nepal Telecom (177,265), United Telecom Limited (68,163) and STM Telecom (4,060).

Fixed teledensity stood at 2.95 per cent at the end of the period, the regulator said.

In the mobile segment, Nepal Telecom again led the way with more than 3.169 million GSM users, ahead of Spice Nepal's base of 1.873 million while CDMA (Sky Phone) services rendered Nepal Telecom a further 555,338 connections and helped pushed cellular penetration to 20.35 per cent by 14 August. NTA also reported a smattering of `other' mobile users, including limited mobility (85,577), GMPCS (1,517) and W-CDMA (683).

Meanwhile, in the data services market, Nepal, or more specifically Nepal Telecom, had 15,561 ADSL connections at the end of the review period as well as 50,400 registered GPRS customers and 3,283 CDMA 1x subscribers, while United Telecom and Spice Nepal counted 24,823 and 332,428 CDMA 1x users respectively.

Phillips Big Deal

Jyoti Group -- sole distributors of Philips mobiles in Nepal -- brings unmatched Big Deal offer this Dashain and Tihar. The offer not only guarantees minimum exchange of Rs 2,000 on any mobile in any condition but also unique Philips goodies -- travel pouch and digital clock. With Xenium technology, the Philips mobiles give 30 hours standby time and eight-hour talk-time.-

FNCCI for Malaysia

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has decided to organize its ninth meeting in Malaysia. The eighth meeting of FNCCI executives have taken this decision to explore trade and investment opportunities in Malaysia. FNCCI's eighth meeting has approved Rs 52.69 million budget for the fiscal year 2009-10.

Guna Air Adds Aircraft

Guna Airlines has added one more aircraft in its fleet from Thursday. According to the company, the new aircraft -- Beech 1900 D -- is different from the earlier two aircraft Beech 1900C. They were flying to Simara, Biratnagar and mountain flights. It is planning to expand its service to Bharatpur, Janakpur, Bhadrapur, Bhairahawa and Nepalginj soon. The airlines started its operation on May 1.

Govt Defies Revenue Collection Target

The finance ministry has collected Rs 22.55 billion revenue in the second month (July 15-August 15) of the current fiscal year.

"The collection is 54.5 per cent higher than the collection in the same period of last fiscal year,"

said Revenue Secretary Krishna Hari Baskota. During the same month in the last fiscal year the government has collected Rs 14.58 billion.

Baskota contributed the encouraging collection to the leakage control, higher valuation in customs, and effective monitoring of VAT receipt before the festive season.

The VAT has become the major source of revenue for the government. In the second month, the government has collected Rs 8.76 billion -- the highest among the tax heads -- under the VAT, while from customs it collected Rs 5.34 billion only.

Similarly, the government collected Rs 3.75 billion from excise, Rs 2.63 billion from income tax, Rs 580 million from registration, Rs 570 million from visitors' and Rs 930 million from non-tax.

Reforms in tax administration and new entrants in the tax net have also helped the government collect ore revenue.

Finance Minister Surendra Pandey set a target of Rs 176.50 billion -- Rs 150.24 billion from tax revenue and Rs 26.25 billion from non-tax revenue for the fiscal year 2009-10.

He has announced his accommodative budget of Rs 285.93 billion for the fiscal 2009-10 on July 13. For the first month of this fiscal year (June16-July16), it had set a target of Rs 9.78 billion but the ministry exceeded the target and collected Rs 11.74 billion.

the first month's collection was Rs 4.02 billion more than that in last fiscal year's same month. It was 52.2 per cent higher than the first month of the last fiscal year.

According to the ministry, among all taxes the Value Added Tax (VAT) will fetch in the most revenue, followed by customs.

The ministry is set to collect Rs 51.56 billion in VAT and Rs 33.12 billion in customs.

The collection from excise duty would be Rs 19.64 billion and that from education service tax Rs 120 million, according to the target. It has planned to collect Rs 26.25 billion in non-tax revenue.

The ministry is also encouraged by its campaign to register for service sector employees and professional consultants in the PAN to boost revenue. According to the collection, the income tax comes into the fourth position after VAT, Customs and Excise.

Cheers Bear Re-Launched

United Brewery has re-launched `Cheers Beer' in the market. The company -- established in 2028 BS -- has a popular brand Star beer. Cheers bear is manufactured using Japanese technolo gy while earlier it used Ger man technology, said the company. Along with attrac tive packaging, the product has a new taste. According to a press release, the com pany is all set to make huge brand promotion with its first product Star Beer in the market. With its flagship brands like Star Gold, Star and Cheers are the flagship brands, it is planning to manufacture more varieties.

The beer has its own inter national market and aims to establish its brand in the do mestic market too, said the company that targets to meet the consumer satisfaction with quality.

Sunrise in Rajbiraj

Sunrise Bank Ltd opened its 23rd branch in Rajbiraj of Saptari district. Director Bachcha Ram Tated and chairperson of Rajbiraj Association of Commerce and Industry Sriram Kawar inaugurated the branch on Wednesday. The bank gained Rs 140 million operating profit last year. It also collected Rs 14 billion in deposit and invested Rs 9.4 billion till September 17, 2009.

Gulmi Development Bank in Operation

Gulmi Development Bank Ltd (GDBL) started its operations from Thursday. The bank is promoted by remittance companies, local businessmen, bankers and chartered accountants. It is the 70th development bank in Nepal. It plans to mobilise local resources in productive sectors and issue IPO within this December.

Kumari Bank Opened New Branch in Old Baneshwor

Kumari Bank Ltd opened new branches in Old Baneshwor and Chabahil on Wednesday. The bank provides modern banking facilities including opening account with zero balance. It plans to open two more branches in Koteshwor and Budhanilkantha after Dashain festival.

Dashain Shoppers on a Low

It's Dashain, but most folk are moping instead of revelling. Shopping hubs in the valley have voted this Dashain as the dullest ever.

"In the past even sales people enjoyed the clamor and inundation of people.

This time, whether it is lack of enthusiasm or restriction in buying power we haven't had any sort of rush," said Prem Pokharel, operations manager at Bluebird.

"People would come to this part to shop as things here could be bought for the best price but this time there is hardly any excitement in Indra Chowk. Customers are finding everything too expensive," said Rubina Maharjan of Prakriti Fashion at Indra Chowk.

Though there are people out to shop, the old excitement and anticipation that used to fill the markets during Dashain is missing this time. "Things are expensive.

Also, most of us buy throughout the year instead of just before Dashain as shopkeepers tend to hike the prices suddenly. So, any smart shopper would buy throughout the year," said Pratima Thapa, consumer.

However, many shops that have been around for a long time are not suffering too much, but have been experiencing a steady flow of customers. "We really haven't seen much of a difference because our prices are stable and so is the quality. Our customers are loyal," said Rajju Shakya, manager for Gift House at Bishal Bazaar.

A well-known shoe store in the valley, Top Class, has seen a change. "Maybe it is because of so many new outlets that people want to experiment and explore, but this time around it just doesn't feel like Dashain. Some regular days in the year were busier and more packed than this," said Sanjay Karanjid, a staff member at the Top Class store.

Whether it's the plethora of places available for people to shop at otheir r low purchase capacity, one thing is clear -- this nonce, it sure don't seem like Dashain.

Hotel Association's Corporate Social Responsibility

Hotel Association Nepal (HAN) Corporate Social Responsibility (CSR) committee is working fix the water supply problem of resi dents and tourists in world heritage site and popular tourist destination Swayamb hu area. HAN organised an interaction programme in which Minister for Tourism and Civil Aviation Sharat Singh Bhandari appreciated the steps taken by HAN to mitigate the problem.

Sony Brings Slimmest HD LCD TV

BRAVIA ZX1 has been launched here.

Sony Electronics Asia Pacific has introduced BRAVIA ZX1, a stunning full HD LCD TV that will transform any living space, said Nepa Hima Trade Link.

The most striking design feature is the world's slimmest 40-inch HD display screen, a mere 9.9mm thick. The secret of this remarkable engineering feat is Edge LED technology achieved by using sidemounted LEDs to illuminate the screen instead of the usual backlight array.

BRAVIA ZX1 imbues cool sophistication, whether it is free-standing or mounted on the wall, and thanks to `BRAVIA 1080 Wireless' technology the luxury aesthetics are not obscured by wires or other devices. The innovative system utilises a high-speed wireless connection for real time transmission of HD signals to the ZX1, the company said.

BRAVIA's image quality is outstanding.

What sets it apart is superior advanced image processing technology which guarantees that even the most frenetic image sequences appear effortlessly smooth and crisp. This is due to BRAVIA's Motionflow 100Hz technology.

Coupled with Motionflow 100Hz, its IB Reduction (Image Blur Reduction) cleans up the original signal. The combined effect is exceptional clarity and motion which always extremely convincing.

Banks Run Out of Notes

Banks in Lamjung have run out of cash ahead of Dashain. Customers have to turn back disappointed. Nepal Bank Ltd, Rastriya Banijya Bank, Pacific Development Bank, Gandaki Development Bank, Everest Bank and Sunrise Bank have run dry.

They have also not been able to pay offi cial account holders like government of fices and schools as well. Even coopera tives and finance companies in the district have run out of cash.

Secys Get PAN

Chief secretary Madhav Prasad Ghimire distributed personal account number (PAN) cards to secretaries of the government. Budget 2009-10 has announced to distribute PAN cards to the people of Nepal. According to the Ministry of Finance (MoF), 34 secretaries got PAN cards on Wednesday. MoF is planning to expand the PAN card distribution campaign to expand the tax net. The campaign started last month by distributing PAN cards to President Dr Ram Baran Yadav, Prime Minister Madhav Kumar Nepal and other ministers.

IME's Bonus Shares

The fifth AGM of IME Financial Institution Ltd on Tuesday decided to issue 20 per cent bonus shares. The company is also issuing rights shares in 1:3 ratio to increase capital. According to a company statement, after the issue of bonus and rights shares the authorised and paid-up capital will be Rs 4 billion and Rs 1.2 billion, respectively.

Nepal Investment Bank Limited's 23rd AGM

The 23rd AGM of Nepal Investment Bank Ltd (NIBL) has approved the proposed 20 per cent cash dividend to its shareholders on Wednesday. The dividend amounts to Rs 481.41 million which volume-wise is among the highest in Nepal. On the basis of strong performance, NIBL managed to earn a net profit of Rs 900.619 million -- an increment of 29.26 per cent compared to the 2007-08 fiscal -- in the fiscal year 2008-09 that also saw its paid-up capital rise to Rs 2.407 billion from 2007-08's Rs 1.203 billion.

Starter Shop a Biz Lifeline

Federation of Nepalese Chambers of Commerce and Industry along with GTZ and SEQUA held a conference on One-Stop Starter Shop to provide business solutions to young entrepreneurs in the country.

The "Starter Shop" will be a help desk at the local chamber of commerce and industry providing information to assist in investment decision making. It will give support in the start-up and post start-up process in a new business.

A starter shop will be a centre or location at which small and medium entrepreneurs can find all the information about the government and business services, all in one place.

Highlighting the importance of starter shops, SEQUA programme director Dr Christian Beck said, "From the initial orientation till the very end, a starter shop would help young and medium entrepreneurs develop a concept, a business plan and be a bridge to financial institutions, and post launch of the business help sustain it."

The one-stop starter shop concept, which is prevalent in Germany, looks to help potential entrepreneur's set-up their businesses and companies and provide solutions to sustain them. It would give easy access to young people and familiarize them with the tax and law system concerned with new businesses by providing all registration requirements, proving to be an entry point to training of skills post set-up.

According to Dr Beck, this concept would help the government as well by providing hassle-free revenue generation, improved government practices as well as facilitation for more employment which would also help in the provision of business development services.

A few months back, GTZ and FNCCI had signed a MoU to provide training to individuals interested in applying for loans and setting up small businesses in rural areas, and also tap into and train skilled business minds to generate them into mainstream entrepreneurship.

BenQ iDream Mini Laptop

BenQ has launched its new series Joybook Lite U102. iDream Professionals Pvt Ltd is the local distributor of the laptop here. Joybook Lite U102 has a 10.1'' screen, and is less an inch thick with miniature AC adapter.

The widescreen LEDbacklit display, with hard disk storage, Intel Atom CPU, and three USB 2.0 slots. There is a 4-in-1 card reader for access to photos, music etc. It costs Rs 33,000. with free Anitvirus software for one year and mouse.

Starter Shop a Biz Lifeline

Federation of Nepalese Chambers of Commerce and Industry along with GTZ and SEQUA held a conference on One-Stop Starter Shop to provide business solutions to young entrepreneurs in the country.

The "Starter Shop" will be a help desk at the local chamber of commerce and industry providing information to assist in investment decision making. It will give support in the start-up and post start-up process in a new business.

A starter shop will be a centre or location at which small and medium entrepreneurs can find all the information about the government and business services, all in one place.

Highlighting the importance of starter shops, SEQUA programme director Dr Christian Beck said, "From the initial orientation till the very end, a starter shop would help young and medium entrepreneurs develop a concept, a business plan and be a bridge to financial institutions, and post launch of the business help sustain it."

The one-stop starter shop concept, which is prevalent in Germany, looks to help potential entrepreneur's set-up their businesses and companies and provide solutions to sustain them. It would give easy access to young people and familiarize them with the tax and law system concerned with new businesses by providing all registration requirements, proving to be an entry point to training of skills post set-up.

According to Dr Beck, this concept would help the government as well by providing hassle-free revenue generation, improved government practices as well as facilitation for more employment which would also help in the provision of business development services.

A few months back, GTZ and FNCCI had signed a MoU to provide training to individuals interested in applying for loans and setting up small businesses in rural areas, and also tap into and train skilled business minds to generate them into mainstream entrepreneurship.

Carpet Mega Sale Evokes Mega Response

The third Carpet Mega Sale is generating huge public response.

Organised by Direction Nepal is expecting around 10,000 visitors by the end of this week. The sale that started on Friday has nine Nepali carpet industries participating and showcasing their carpets in eleven stalls.

Those participating are the top carpet manufacturers in Nepal, said event organiser Ramesh Thapa of Direction Nepal.

"We are looking to promote carpets that are made in Nepal by providing the manufacturers a platform to showcase their products and inform the Nepali people that carpets made in Nepal are of good quality and that they should buy these,"

added Thapa.

The expo has provided direct interaction between the buyer and seller as well as the manufacturer and assures of quality and value for money.

"We have had good sales in this expo and have done business worth Rs 250,000 over the past two days," said Gopal Risel, Paranjali Carpets.

According to Thapa, the response at these sort of sales and Expos has been very positive and profitable.

"People are opening up to the idea of such events as they provides good solutions for everyday consumer needs under one roof. Besides, coming in direct contact with the executers gives them a fairly reasonable idea about what to buy and where. Pricing also is a positive factor," he said.

Meet on Informal Sector's Contribution

City streets are lined by barbers, cobblers, waste recyclers, vendors of vegetables and every other imaginable kind of goods.

They join the legions of workers that comprise the informal sector, that shadowy part of the economy, where companies -- if they can even be called that --don't exist on official registers and workers don't have secure contracts or benefits and social protection.

"This sector is hugely important to developing countries, having ballooned over the past decades as high rates of urbanisation, population growth and declining wages have pushed people out of the formal sector,"

said Professor Bishnu Dev Pant, director of the Centre for Economic and Applied Statics (CEAS)-South Asian Institute of Management.

"To gauge their contribu tion in real terms, brain storming is needed," he said adding that South Asian In stitute of Management is holding an international con ference on `Measuring Infor mal Sector in Developing Countries' jointly with Inter national Association for Re search on Income and Wealth (IARIW) on September 24-25 in Kathmandu.

In most developing coun tries, most people depend for their livelihood on the `informal economy' as their incomes come from subsistence farming or from operating small unincorpo rated enterprises.

Although the largest part o GDP may be generated by the formal economy, mos people in developing coun tries live in the informal one according to Pant.

By its nature the informa economy is difficult to measure. Informal enterpris- es are not usually listed in - statistical registers used for official surveys, so indirect - methods have to be used to estimate their contribution - to value addition, output and - employment.

"Measuring the informal - economy is therefore one of - the main themes of the Spe cial Conference," Prof Pant said adding, "But measure ment is only useful if it serves - the needs of policy makers.

The conference will also consider the more basic questions of what needs to be measured and how measur ing the wrong things may - lead to bad policy-making."

"Yet, there's scant data on f the informal sector, largely because of its high turnover, t the reluctance of informal - workers to participate in offi, cial survey and the small size of informal enterprises. This l has a dealt death blow to sound policy-making in small economies where the informal sector plays a big role," he said adding that traditional survey methods will need to be totally overhauled to capture the full complexity of the informal sector.

This Special IARIW Conference -- that will have 50-75 participants -- will look at both economic and social aspects of the informal economy.

How large it is in terms of employment and output, where families in the informal economy stand in the overall income distribution, what access they have to government education and health services, how they are served by non-profit institutions, how they cope with food shortages and price hike of basic foodstuffs, and what government policies may be helpful or harmful in promoting the welfare of those who live in the informal economy.

Revenue Secretary Takes Heart from Collection

The government collected Rs 22.5 billion revenue by the second month (Bhadra) of the current fiscal year.

Speaking at a press meet today, revenue secretary Krishna Hari Baskota said that revenue collection is satisfactory -- both in agricultural and trade sectors. "There has been 30 per cent increment in the revenue collection from customs," he said adding that the government has collected Rs 8 billion from VAT, Rs 3 billion from excise, Rs 3 billion from income tax, Rs 500 million from transportation and Rs 75 billion from registration. "Currently India has eight per cent inflation and Nepal has 13 per cent. There is not much difference," he argued. According to Baskota, the government is very much concerned about awareness about tax and about is distributing pamphlets at shopping centres and malls. "During the Dashain holidays, the customs points will remain closed but for emergency and at airport, they will be operational," he added.

Meanwhile, Pradeep Man Vaidhya, coordinator of the Revenue Committee at Federation of Nepalese Chambers of Commerce and Industry (FNCCI) voiced his dissatisfaction over the appointees in the panel to recommend on Central Revenue Board. However, Baskota said the board was temporary and was by November 15, it will submit its report.

Vaidhya, however, supported the government's PAN distribution drive.

The board consists of Prof Dr Madan Dahal, Prof Dr Puspa Kandel, Niranjan Tibrewal, joint secretary at the finance ministry Santa Raj Subedi and senior advisor Keshav Acharya.

On the occasion, president of Nepal Chamber of Commerce (NCC) Surendra Bir Malakar urged the government to regularly monitor the market not only during the festive season only.

Abhilasha Savings AGM

Abhilasha Savings and Credit Cooperative Company organised its first AGM on Saturday. According to a press note, it has a total of 109 members.

Comen Team

Commodities and Metal Exchange Nepal Ltd during its first and second AGM formed its new four-member committee. According to a press note, Manoranjan Raman Sharma, Ramesh Kumar Bhattarai, Sujan Kumar Kafle, Sanjay Man Singh Shrestha, Dipak Kumar Budhathoki, Subhash Narsingh Sha-kya, and Bhupesh Raj Bhandari have been elected unopposed members of the new management committee.

Ace Express Starts

Ace Express Travel Services on Monday got formal inaugurated. The company has its central office at Bhagwatibahal, Thamel. According to the press statement issued, the company has authorised capital of Rs 300 million and paid up capital of Rs 20 million.

Gorkha Development Bank Inaugurated 10th Branch

Gurkha Development Bank(Nepal) Ltd on Sunday inaugurated its 10th branch office at Balaju.

According to the press statement issued, during the fiscal year 2008-09 posted total deposit of Rs 3.36 billion, total investment of Rs 100 million, net profit of Rs 50 million and total credit flow of Rs 3.40 billion. It has paid-up capital Rs 600 million and authorised capital Rs 2 billion.

Social Development Bank Ltd Gets Approval

Nepal Rastra Bank (NRB) has given primary permission for Social Development Bank Ltd (SDBL). The bank -- with its 93 promoters -- has Rs 1 billion paid up capital and Rs 750.3 million issue capital, states a press release. The management committee has Krishna Gopal Shrestha as chairman with Nirmal Pradhan, Sonam Gyachou, Ratna Kansakar, and Amir Dhoj Pradhan as directors.

International Development Bank Limited Starts Operation

Finance Minister Surendra Pandey on Sunday inaugurated International Development Bank Ltd (IDBL). The bank that has 514 promoters has targeted to increase paid up capital to over Rs 2 billion and upgraded to commercial bank with a total of 50 branches within five years. It has Rs 640 million issued capital and will float 30 per cent of the issue capital to public.

Country Gets its First Credit Rating Agency

Finally Nepal has a credit rating agency.

Credit Rating Agency Nepal Pvt Ltd (CRANE) has become the first credit rating agency (CRA) to be registered in Nepal and will start operating from November.

CRA is a company that assigns credit ratings for issuers of certain types of debt obligations as well as the debt instruments themselves. The issuers of securities are companies, special purpose entities, state and local governments, nonprofit organizations or national governments issuing debt-like securities that is bonds that can be traded on a secondary market. A credit rating for an issuer takes into consideration the issuer's creditworthiness such as ability to pay back a loan and affects the interest rate applied to the particular security being issued. Prior to buying the securities, the public can get complete and reliable information about the instrument where one is going to pour in hard-earned money.

With the increasing domestic corporate world of especially financial institutions, such rating agencies are the need of the hour. "Such rating agencies are self regulated and its not a compulsan rather a certifiaction that can boost the confidence of the investors and the company itself," said CRANE chairman Sujeev Shakya.

CRANE will begin rating services for individuals, corporates, financial institutions and instruments issued by them. "It will provide a full range of international quality rating and grading services for individuals and organisations," he added.

CRANE has also signed a Memorandum of Understanding (MoU) with CARE Ratings -- India's premier rating agency Credit Analysis & Research Ltd.

CARE Ratings is a full-service rating company that offers a wide range of rating and grading services across sectors. It has unparalleled depth of expertise and its methodologies are in line with the best international practices.

Recognised by Securities and Exchange Board of India (Sebi), Government of India (GoI) and Reserve Bank of India (RBI) CARE Ratings has completed over 6,256 rating assignments having aggregate value of about IRs 18,248 billion (till June 30), since its inception in April 1993.

CARE Ratings managing director D R Dogra hoped that the MoU would bring world class rating methodologies to Nepal and add a complete new dimension to the country's domestic financial and corporate world.

Shakya said it was a continuation of beed management's efforts to pioneer new businesses in Nepal. "We look forward to fill the void of a rating agency in Nepal and change the way business and financial transactions are conducted," he said.

Kist's 33rd Branch in Palpa

KIST Bank Ltd inaugurated its 33rd branch office in Palpa on Sunday. The bank has targeted to establish a total of 50 branch offices during the present fiscal year. It has a total of 12 branch offices in Kathmandu and 21 branch offices outside the valley.

Citizen Bank's Bhandari Awarded

Nepal Youth Society, Kathmandu, has conferred Rajan Singh Bhandari, chief executive officer of Citizens Bank International, with National Service Award 2009, recognizing his commitment, involvement and contribution in the development of the banking sector.

Issuing a press release, the bank announced that Minister for Agriculture and Cooperatives Mrigendra Kumar Singh Yadav handed over the award to Bhandari on Saturday.

Established some two-and-a-half years ago with its head office in Kamaladi, Citizens Bank presently operates with 17 branches across the country and has client base of more than 54,000.

As of mid-July 2009, the bank has mobilized deposits of Rs 11.52 billion and invested Rs 8.21 billion, earning net profit of Rs 95.80 million in the last fiscal year.

Global Bank's 20th Branch at Dhapasi

Global Bank Ltd on Sunday inaugurated its 20th branch office at Dhapasi. The bank for the festival season has also launched a scheme, Global pariwar Bachat Yojana, with 10 per cent interest on deposits, read a press statement. It grants 50 per cent discount on education processing charge and 30 per cent discount on locker service.

Cheers Beer Relaunched

United Brewery, the first beer manufacturer of the country, has relaunched Cheers brand of beer, after stopping its production for about a decade.

According to a press release, the relaunched Cheers beer is produced by using Japanese technology. Previously, it was produced with German technology. “Cheers comes in an attractive new package and has special taste that will be liked by Nepali consumers,” states the release.

The company has further announced a plan to diversify its products. Star beer and Star Gold are other two known brands of United Brewery.

Laxmi Bank Started Financing

Laxmi Bank Ltd started financing solar home systems bundled with the Bank's Home Loans. Under the scheme the bank will offer loans to customers who wish to install solar systems as an alternative or back up energy source with easy repayment schedule spread over the tenure of the original home loan. This will ensure that the monthly installment is low and affordable, said the bank. Laxmi Bank has tied up with Solar Solutions Pvt Ltd that supplies solar system solutions for urban use. In 2009, it distributed dividends for the first time through 20 per cent bonus shares. The eighth AGM also approved 5:2 rights shares issue.

Everest Bank's 32nd ATM in Bhaktapur

Everest Bank Ltd (EBL) installed its 32nd ATM in Bhaktapur. EBL debit cards can be used at more than 2,000 ATMs of Punjab National Bank spread across India. Debit card holders of PNB can withdraw money from any ATM of EBL, said the bank. This sharing arrangement has benefited the huge Nepali population residing in India which includes students, businessmen, workers and tourists to India, who want reliable ATM facility for taking money from their accounts in Nepal. EBL debit card is accepted in more than 350 ATMs of SCT network and more than 1200 merchant outlets in Nepal. At present, more than 95000 EBL customers have EBL debit cards.

Asian Life Insurance to Issue 1.08 Million Share

Securities Board of Nepal has permitted Asian Life Insurance Company to issue 1.08million units of share with face value of Rs 100 per unit to the public. The company that has Rs 360 million paid-up capital is issuing 30 per cent public shares, said a press release. NIDC Capital Market is the issue manager and sales manager.

Currently, Nepse has 17 insurance companies -- totalling to 20,467,884unit that has Rs 2,046,788,400 paid up capital -- under the insurance companies sub-group.

Nepse Has its Chin Just Above Water

Commercial banks, others and hydropower subgroups saved Nepse from sliding below 600 points.

They pushed up Nepse by 13.18 points to 627.97 points from Sunday's opening of 604.65 points.

Of the nine sub-groups -- commercial banks gained a whopping 21.91 points to rise to 626.56 points, others sub-group gained 12.92 points to reach 657.94 points and hydropower sub-group gained 4.69 points to reach 833.25 points. Four sub-groups lost this week and two others -- hotels and manufacturing -- did not see any trading of their shares this week.

The week started in the green but Nepse lost points to settle at 627.97 points. National Hydropower topped in terms of transaction amount as its shares were traded at Rs 75.04 million. Standard Chartered Bank Nepal followed while NIC Bank, Bank of Kathmandu and Nabil Bank were in the top five slot, respectively.

In terms of number of share units traded also, National Hydropower led with 8,42,000-unit shares tradeds. In terms of number of transactions Pashupati Development Bank led with 439 transactions.

However, transaction amount decreased by 9.46 percent this week against last week's increase of 40.08 per cent to Rs 483.89 million. Group-A companies' contribution also dropped to 48.75 per cent against last week's 70.71 per cent. The 78scrip sensitive index gained 3.10 points to 160.52 points. The float index rose to 59.70 points.

NTB Eyes Auto Rallies for NTY 2011

The team of French and Swiss individuals that came to Kathmandu on Wednesday evening in a motor rally visited Lumbini on Thursday and left for Mumbai yesterday.

A convoy of 22 classic Citroen automobile made it from Beijing to Kathmandu in nine days. The 30year-old cars managed to scale mountainous regions of Tibet after winding their way through China's Yunnan province.

Nepal Tourism Board (NTB) is expecting an auto-rickshaw rally from Goa of India next week. It is looking to encourage tourism rallies with the intention of promoting tourism in Nepal in a big way.

After four rallies using Nepal as their destination, the group of French and Swiss nationals made Kathmandu their destination in their rally from Beijing to Mumbai.

"We have already had four rallies come in this year and are expecting a few more by the end of the year, including one auto rickshaw rally from Goa next week," said NTB media consultant Sharad Pradhan.

NTB is looking to support many more road trip rallies coming into the country to further tourism for the year 2011, where the board is including rallies of various kinds as a part of their attraction for Nepal Tourism year 2011.

"It's a very great way of promoting a destination, when groups such as these come into the country. Word of mouth is more effective than any other kind of promotion,"

added Pradhan.

NTB is looking at 2011 in a big way as it has been designated the year for tourism in Nepal. "By supporting these rallies we are expecting many visitors in 2011. The fact that people involved in these rallies make Nepal a destination on their route map is a big deal in itself,"

said Pradhan.

Relief for Strapped NDB Depositors

Troubled Nepal Development Bank's (NDB) depositors might be able to celebrate Dashain with an easy mind as Patan Appellate Court yesterday directed Nepal Rastra bank (NRB) to let them withdraw a minimum amount from their deposits.

The court has asked NRB to let worried depositors withdraw Rs 50,000 -- 50 per cent of their deposit -- if their deposit is Rs 1,00,000. "In case of more than Rs 1,00,000 deposit, they can still withdraw 50 per cent but not those with above Rs 2,00,000 deposit," said Nepal Bikash Bank Peedit Sangh president Kirti Madan Joshi.

"The letter wil reach NRB on Sunday and it will decide when to let us withdraw our deposits," an elated Joshi said adding that the NRB governor might decide their fate on Sunday.

"If NRB permits us to withdraw, depositors with savings accounts and fixed -- whose account has already matured -- can withdraw according to the court directive," he added.

The court has heard the case after Investigation Officer T R Upadhyaya.

Philips Big Deal Offer

Jyoti Group -- sole distributors of Philips TV in Nepal -brings Big Deal offer this Dashain and Tihar. This offer not only guarantees Philips unmatchable goodies upto Rs 2,000 but also a chance to win upto Rs 100,000, said the company. Philips TV comes with superior technology and vast range from 14" to 29" with Ultra slim screens and offers true value for money.

NT Slashes SMS Rate

Nepal Telecom (NT) has reduced SMS rates by half for Dashain-Tihar season. An SMS will cost Rs 0.62 -- including all taxes. The reduction will be valid only for GSM -- for both pre-paid and post-paid -and CDMA services starting from September 24 to October 7. However the charges for SMS to other service providers´ phone numbers will remain same. The regular charges on NT´s SMS stands at Rs 1 for each SMS (excluding taxes).

Price Hike Pall Hangs Over Dashain

This Dashain is going to be costlier than the last one as the price of staple food is higher than it was at the peak of the international food crisis last August.

In comparison to last August, the price of musuro (lentil) is up by 35 per cent. Black gram is up by 23 per cent and wheat by two per cent. Vegetable prices are also very high -- in some cases more than double what they were last August. This is primarily due to the winter drought, late monsoon and difficulty in transportation caused by various road closures, said a report prepared jointly by the Ministry of Agriculture and Cooperatives (MoAC), Department of Agriculture, Agribusiness Promotion and Marketing Development Directorate, Federation of Nepalese Chambers of Commerce and Industries, World Food Programme-Food Security Monitoring and Analysis Unit and Consumer Interest Protection Forum.

Dashain is expected to be particularly expensive for Nepali households as chicken prices are already very high because the poultry industry is recovering from losses caused by bird flu earlier in the year and that had led to increased consumption of mutton. It is reported that mutton price also will be higher than normal this Dashain due to reduced supply.

The price of sugar is continuing to increase, up by an average of seven per cent this month compared to last month.

This is due to reduced regional and global supply, according to the report.

Maize and potato harvests have begun in various hill and mountain areas in Central and Western Nepal and this has had a positive impact on the availability of these items. However, the harvests have been impaired by drought and in some areas by flood also.

During August, Dairy Development Corporation (DDC) increased the retail price of milk by Rs 2 per litre. Following the hike, milk supply was seriously disrupted after dairy farmers across the country protested asking for a Rs 4 per litre hike.

Traders in the hill and mountain markets of Bajhang, Baitadi, Dadeldhura, Dailekh, Dolpa, Jumla, Humla, Mugu, Myagdi and Sindhupalchok say that there is insufficient supply of important food items to meet the demands of local people.

During August and early September monsoon rains reduced road access and increased transportation costs to many hill and mountain markets, fuelling food prices higher. The delayed and weak monsoon is also expected to reduce crop output by around 15 to 20 per cent, creating more pressure.

Many of the markets have insufficient supply of key commodities and consequently prices have increased. Nepal is also expected to face an estimated 400,000 metric tonnes (MT) domestic food grain deficit this year. This shortfall combined with poor crop cultivation in India is expected to increase food prices in Nepal towards the end of 2009 and during the first quarter of 2010, said the report.

On one hand, the demand for food has risen three-fold and on the other the reduced putput is certain to push the price of commodities sky-high.

According to Nepal Rastra Bank, in 2008-09 the agriculture sector was estimated to grow by half to 2.2 per cent and nonagriculture sector at 4.7 per cent against the growth of 4.7 per cent and 5.6 per cent a year ago.

Due to an unfavourable monsoon, the production of paddy has dropped to 5.2 per cent in comparison to a growth of 16.8 per cent in 2007-08.

PAC Tells NAC Not to Buy New Aircraft

The Public Accounts Committee (PAC) today asked Minister for Tourism and Civil Aviation Sharad Singh Bhandari to improve the management of the ailing national flag carrier rather than buy new aircraft.

Nepal Airlines Corporation (NAC) is planning to buy wide-body aircraft. "A committee formed to study the need to buy new aircraft has raised serious questions about the necessity of buying widebody aircraft,"

said PAC members. "However, buying narrow body aircraft might make it easier to start regional flights according to the revised Air Service Agreement (ASA) between Nepal and India,"

it added.

Bhandari, however, reasoned that the new aircraft are the need of the hour as the country is celebrating Nepal Tourism Year 2011 and the number of present aircraft is not enough.

There are two old aircraft -Boeing 747s -- with NAC, of which only one is in operation currently.

PAC has also raised questions about the process of the aircraft purchase. According to PAC, it is not in accordance with economic regulations of NAC.

The minister accepted that confusion over the executive powers of chairman Sugat Ratna Kansakar and general manager KB Gurung is hindering work in NAC. "Once the court gives a verdict, the issue will be resolved," he said.

The government has appointed Kansakar executive chairman. Earlier, Limbu was managing director and enjoying executive rights.

Managing director captain Kul Bahadur has moved the SC asking for a stay order against the appointment of Sugat Ratna Kansakar as executive chairman. The present government appointed Kansakar executive chairman on July 26.

Dr Prakash Chandra Lohani, joint chairman of Rastriya Janashakti Party and Hridayesh Tripathi, both members of the PAC had warned NAC of the negative consequencies of buying aircraft.

Ailing NAC has been planning to add new aircraft in its domestic fleet also.

On the domestic routes NAC is flying its four DHC6-Twin Otter aircraft that each have 19-seat capacity, though it has seven Twin Otters Apart from the two much-talked wide-body aircraft, NAC also had planned to add six aircraft on international routes.

Currently, on international routes NAC is flying a Boeing B-757 and a Boeing 757-200 aircraft -- Karnali and Gandaki -- each with 190-seat capacity.

Festive Season Currency Crisis

For want of appropriate management of new notes for the festival season, Nepal Rastra Bank has been able to fulfill only 10 per cent of the total demand for new notes.

Uma Kant Thapaliya, president of Nepal Rastra Bank Employee Association (NRBEA), at the head office in Thapathali said that there is always a scarcity of new notes during the festival season but still there has never been any concern regarding the masses' demand fulfillment. According to him, the scarcity of new notes can be easily noticed at intervals of six months but there are no initiatives taken on time and during peak season the general people and also financial institutions that has its account at NRB has to suffer with scarcity of notes.

Though NRB is going to distribute 180 boxes of new 500 notes that will not be enough, said Thapaliya adding that even banks and financial institutions at present do not have of the new notes or are bound to keep notes of 10-20 denominations due to shortage of notes of 500 denomination.

Worldlink CSR

WorldLink, joined hands with Climate for Life, a campaign on climate change in the Himalayas launched by WWF, as part of its Corporate Social Responsibility. WorldLink is partnering with Climate for Life as its official Information Communications and Technology Advisor and will support the campaign in all its online communications and outreach activities. "We are proud to be associated with Climate for Life which brings the voices of the Nepali people together on the issue of Climate Change," said Dileep Agrawal, WorldLink

chairman.

Miho Action Stations

Jagdamba Foods has introduced an eye-catching promo at prime shopping outlets, major thoroughfares and streets across Kathmandu as a follow-up to the mega launch of Miho ready-to-eat noodles. Vibrantly decorated Miho Action Stations have been placed at select places in the valley. The Miho Action Stations -- where live cooking is done -- are manned by trained cooks, hostesses and assistants. Passersby and shoppers can stop at the Action Stations and enjoy freshly prepared Miho noodles in three varieties -Soup, Fried and Sadeko. The price of all the dishes is the same as a packet of Miho, that is Rs 15 only.

DCBL's Bonus Shares

DCBL Bank Ltd's AGM on Wednesday will give five per cent bonus shares. This is within a year of its being upgraded to A-class commercial bank from B-class bank. After 2:1 rights issue, the paid-up capital of the bank has increased to Rs 1.65 billion. In the fiscal year 200809, the bank registered a net profit of Rs 103 million -- an increment of 87.52 per cent compared to the preceding fiscal year. It has 1.59 per cent NPA only.

BF Dear Hill's Festive Offer

Base Footwear Pvt Ltd has launched a sales promotion scheme -- Hathma Money Handsome Pani -- for Dashain and Tihar. Under the scheme, a customer can get scratch card of cash gift of Rs 50 to Rs 50,000 along with discount from five per cent to 50 per cent, said the company.

Tara Air Adds Six More Aircraft

Tara Air has added six aircraft -- four DHC 6 300 Twin Otters and two PC-6s -- to its fleet from mid-September. The company has leased two DO 228 Dornier aircrafts from associate company Yeti Airlines. Tara Air started charter flights from two Pilatus Porter aircraft last month.

The airlines is planning to operate 15 flights from Kathmandu to Lukla per day and daily flights to Jomsom from Pokhara and to Tumlingtar from Kathmandu. The airlines also has flights to Bharatpur and Meghauli of Chitwan.

Tara Air is operating charter flights to remote destinations like Syangboche, Langtang, Dhorpatan and Jiri. It supports tourism through special purpose flights like skydiving, photography and aerial survey.

Meanwhile, atleast three new airline companies -- Pumo Air, Muktinath Air and Paranova Paraglyding -- are starting their operations soon.

Gold Touches New High of Rs 29,860 Per Tola

Gold touched its historic high today as it was traded at Rs Rs 25,600 per 10 gram (Rs 29,860 per tola) International market pushed the domestic market up. "Traders here are assuming for yet another hike at $1040 per ounce," said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers' Association (NEGOSIDA). Gold today was traded at a record price of $1018 per ounce from yesterday's $1010 in the international market.

According to him, due to devaluation of American dollar against euro and yen, the gold in the international market is increasing rapidly.

"The demand has also increased," Shakya said adding that there is also a fall of 60 paisa per dollar to- day in comparison to yes- terday.

US dollar was traded at Rs 77.5, whereas gold from yes- terday's Rs 25,550 per 10 gram (Rs 29,800 per tola) went up. "Gold price increased by $8 per ounce in the international market but in the domestic market it went up by only Rs 60 per 10 gram,"

Shakya said adding that gold price is looking towards Rs 30,000 per tola in the domestic market.

During the month of Bhadra due to less fluctuation in gold price there was a satisfactory trading of gold with an average of 15 kg per day, whereas in recent days only 10 kg gold is being traded per day, though it's the festival season.

Gold broke its record on February 22 with Rs 25,550 per 10 gram (Rs 29,800 per tola). on July 16, 2008 gold was traded at $1045 per ounce in the international market that was Rs 25,450 per tola due to dollar exchange rate then that was Rs 62. But dollar vis-avis nepali rupee is expensive now fueling the gold price high.

NIBL, NDEX Ink Accord

Nepal Derivative Exchange (NDEX) and Nepal Investment Bank Ltd (NIBL) signed a Memorandum of Understanding (MoU) to operate banking services for the members and clients of NDEX. According to the MoU, the objective of the alliance is to provide online banking facility for exchange members and clients for all of its transactions for clearing and settlement. Through the association the members and clients of NDEX will experience a hassle free trading and settlement operation which will go a long way in developing closer ties and making transactions safer and transparent. NDEX has invited expression of interest from nationwide commodities and derivative broker companies. It will start its operation after Tihar providing platform for nationwide traders and investors on various sectors of commodities like metal, energy and agro products and its derivatives. Jyoti Prakash Pandey, general manager of NIBL said that the launch of the new services shall be pivotal step in the continuous effort to strive for excellence by delivering value to the customers by redefining the boundaries of the existing business and inventing and reinventing products.

Nepal Satellite Telecom to Introduce GSM Service from Mid-October

Nepal Satellite Telecom (NST) Pvt Ltd is launching GSM service commercially from mid-October.

"NST is also going to provide its voice and data services," Ajeya Raj Sumargi, executive director at NST said adding that NST will start its operation from the rural areas and will launch its GSM service within a year at Kathmandu.

"Nepal Telecommunication Authority (NTA) has granted number 96 for the NST service users. Similarly, initial number will be 3 and a ten-digit number, Sumargi added.

For the operation of telephone service, all the required system, accessories, main core system, base station sub system and solar system are ready.

The NST telecom service with its best of technology will also start its services at 273 village development committees (VDCs).

Mukti Shree Telecom (Nepal), Sewa Telecom Pvt Ltd (Bangladesh), Pakistan Mobile Communication (Pakistan) and Air Bell Company (Cyprus) are the major investors of Nepal Satellite Telecom (NST).

"Its services will be started from the unprofitable areas that is the reason why it is getting more facilities compared to others," said Asmita Sumargi, chairman of NST. According to NTA, NST has Basic Telecommunication Service license under which it also has license for limited mobility service -only for landline.

NST got its license on February 17, 2008 and according to the licence it has to start its services from the mid western region, followed by Far Western Region, Western region and only after it can bring its service to the Kathmandu Valley.

The company primarily has a total investment of $25 million and Nabil Bank and Nepal Investment Bank Ltd (NIBL) have provided credit facility to the company.

It is also planning to bring international gateway, CDMA and landline PSTN services in near future. The company will be granting employment to 160 Telecom experts both from national and international level.

There are already three players in the market -- Nepal Telecom (NT), Spice Nepal and United Telecom Ltd (UTL).

Among them NT plans to distribute 2.2 million GSM mobile in the fiscal year 2009-10, increase the number of CDMA to 0.4 million and 50,000 more land line services.

According to the NTA data of last May, Spice Nepal has service penetration of one in 100 population. With its market share of 40.27 per cent and NT with 59.73 per cent.

BitDefender Total Security 2010

BitDefender, a innovative unit malware security solutions today announced the launch of Bitdefender Total Security 2010 in Nepal.

According to a press release, the security solution includes improved optimized scanning, intrusion detection, and increases parental control, application time control, active virus control, in product technical control, usage profile and other system enhancements to provide industry leading proactive protection against all Internet Security Threats, along with improved system maintenance and backup, said the company.

BitDefender Antivirus and BitDefender Internet Security 2010 has also been launched.

Spice M-5252 Phone

Teletalk Pvt Ltd -the sole authorized distributor for Spice Mobiles in Nepal -has launched Spice M-5252, its debut handset under Spice mobile BIG series, which is one of its kinds in multi SIM category.

M 5252 is double packed with `Big' features at a reasonable price, said the company. One can capture videos and pictures of loved ones with the Digital camera and video record, with easy One-Key access, and enjoy an amazing viewing experience in the 2'' TFT Big Screen. The feature rich phone also has various Big Motion features like `Motion Music' allows users to change tracks in the MP3 player with just double shake. It also features Wireless FM, allowing crystal clear listening experience without headphone hassles, claimed the company.

BoK Extends ATM Services

Bank of Kathmandu (BoK) is continuing with extension of its ATMs to provide more benefits to its customers. "The customers of BoK can use its ATM services from 30 various locations," said the bank press release. Currently it has added ATM services in Tikapur, Kohalpur, Gangabu, Bhaktapur, Hetauda, Birgunj, Janakpur, Biratnagar and Itahari.

Mero Mobile Customer Care Center in Biratnagar

Mero Mobile is inaugurating its fourth Customer Care Center in Biratnagar on September 16. The Customer Care Center is located in front of Sanni Mandir (Dharan Road) in the heart of the city.

Development Banks Want Bigger Pie Slice

Development banks want a bigger role in the financial market. "The central bank should ensure our representation in Credit Information Bureau (CIB)," said Development Bankers' Association president and CEO of Malika Bikas Bank Jhapat Bohara, adding that development banks also want to be part of Central Depository Company, Banking Training Institute and Clearing House.

The Central Depository Company being established for modernisation of domestic capital market will have 50 per cent share of Nepse, 10 per cent share of CIB, 15 per cent of CIT and 25 percent of a group of six commercial banks -- Standard Chartered Bank, Nabil Bank, Nepal SBI Bank, Bank of Kathmandu, Nepal Investment Bank and NIC Bank -- as promoters. Bohara urged the Nepal Bankers Association (NBA) to give development banks also a chance to be part of it.

NBA -- along with Nepal Rastra Bank (NRB) and other financial institutions -has established Nepal Clearing House Ltd that will commence Automatic Check Truncation and Clearing Systems to be evolved into a nation-wide payments system. It has 60 per cent share of NBA, 15 per cent of SCT, 10 per cent share of NRB and the remaining share is planned to be distributed between development banks and finance compnaies.

NBA -- with the help of NRB and Rural Microfinace Development Centre (RMDC) and other financial institutions -- has also planned National Banking Training Institute (NBTI).

The training institute has a support base of $2 million from Asian Development Bank (ADB).

"It will be developed as a self-sustainable institute that will be run by a professional CEO," said Nepal Rastra Bank (NRB) deputy governor Bir Bikram Rayamajhi, inaugurating the one-day seminar on `Corporate Good Governance in Banks and Financial Institutions' organised by Development Bankers Association here yesterday.

Giving his presentation on Corporate Good Governance in Banks and FIs, Kumari Bank chief executive officer Radhesh Pant said that lack of good corporate governance will result in collapse of banks and financial institutions.

"Good corporate governance will increase depositors' trust, thus raising premium, Price to Earning (PE) ratio and share price of institutions as a whole," he said adding that corporate good governance will increase access to finance, spruce up brand image and help mobilise funds.

CG Industrial Training

Chaudhary Group (CG) started industrial trainings to provide trained human resource for Nepali industries. CG's CG Polytechnics has launched three-month MMP Basic Industrial Skill Training (Mechanical Fitter) in association with Manmohan Memorial Polytechnics in Chaudhary Industrial Village Nawalparasi. Around 14 trainees are participating in first batch of training.

Ann'apurna Bikas Bank's Cash Dividend

Annapurna Bikas Bank Ltd (ABBL) has decided to distribute its 15 per cent cash dividend to its shareholders. The bank also plans to distribute its rights share in 1:2.2 ratio. According to ABBL, the bank registered an operating profit of Rs 40 million during 2008-09.

Citizens' Dividend

The third AGM of Citizens' Bank International on Tuesday decided to distribute 10 per cent cash dividend and 1:1 rights share to its shareholders within this fiscal year. The bank during the fiscal year 200809 collected a total of Rs 11.52 billion deposit and made a total credit flow of Rs 8.21 billion. It also registered Rs 95.8 million net profit and Rs 184.5 million operating profit.

Nimbus in CSR

Nimbus International Co Pvt Ltd is organising Dashain greeting programme in Sikshyantar School, Sinamangal. The company is providing support for the education of 22 students of the school as its corporate social responsibility (CSR) since the last two years. Nimbus also holds special classes for children aged from 5 to 12 years to protect their educational rights.

Hathaway's Bonus

First AGM of Hathaway Investment Nepal has decided to give five per cent cash dividend to its shareholders. The AGM also elected Hem Raj Dhakal, Gyan Bahadur GC, Ambika Prasad Poudel, Madhusudan Silwal and Binod Sherchan to its board as directors for a fouryear term. The company plans to diversify investment sectors in the coming days, chairman Hem Raj Dhakal said.

DCBL's Rights Shares

DCBL Bank Ltd's AGM on Wednesday decided to distribute 2:1 rights share and five per cent bonus shares. According to a press release, after the rights issue the paid-up capital will be Rs 1.65 billion. In the fiscal year 2008-09, the bank registered a net profit of Rs 103 million -- an increment of 87.52 per cent compared to last fiscal year. It has 1.59 per cent NPA only.

Upadhyaya Recommends NDB's Revival

Asks court who are small depositors; urges it to release employees'salary

Investigation officer T R Upadhyaya has suggested the revival of troubled Nepal Development Bank (NDB). He has recommended to Patan Appellate Court that the bank has chances of revival as the Badri Bhattarai-Nabin Pun Group has given bank guarantees equivalent to Rs 340 million -- Rs 240 million and Rs 100 million each.

However, he has asked the court to clarify who the small depositors are and how much should they get.

The Court had earlier instructed him to pay them first. Tomorrow, the court will define the small depositors and the amount they should get, and it will also order that the salaries of the employees be paid as they have not got their salaries. The employees had urged IO Upadhyaya to get them their salaries before Dashain. Upadhyaya has urged the Court for payment of the employees salaries.

There are around 30 employees including those in NDB's Pokhara branch office and head office in Kamaladi of Kathmandu.

However, based on the recommendations of Upadhyaya the Court will decide either to revive the bank or send it into liquidation after Dashain.

The recommendation has clearly stated that the bank, even if revived, cannot pay institutional depositors like Nepal Army and Employment Provident Fund. "If the bank is revived and runs according to the plan of the Bhattarai-Pun group, these institutions could get their deposits after three years," the recommendation said. It said that the settlement of Non-Performing Assets (NPA) and Non-Banking Assets (NBA) with capital injection will help improve the financial health of the bank as its Capital Adequacy Ration (CAR) will come to 11 per cent. In his report, Upadhyaya has recommended that the bank can be revived with internal resources (Rs 274.64 million) and Rs 320 million capital injection from the Bhattarai-Pun Group.

Bhattarai -- the current promoter -- has given a Rs 240 million bank guarantee through Kumari Bank. Pun -- son of `controversial' former NDB chairman Uttam Pun -- has given Rs 100 million bank guarantee through Kist Bank.

If NDB settles its NPA -- Rs 110 million with Holyland School, Rs 90 million with Nepal Cooperatives Ltd and Rs 80 million with Gurkha Hydropower -- it can be revived, Upadhyaya has recommended in his report to Patan Appellate Court this week. Bhattarai-Pun Group's claim of settling the NPA and NBA before injecting Rs 340 million capital has been accepted by the investigation officer. Bhattarai -- who personally holds 10,000-unit of promoters shares of NDB -- can also add Rs 80 million that is deposited for rights shares by the share holders. But Nepal Rastra Bank has frozen the money.

Neither all the promoters nor all the shareholders bought the rights shares. According to the new Securities Board of Nepal (Sebon) rule, the promoters have to buy the rights shares before floating it to ordinary shareholders.

The first development bank of Nepal has 19,865 shareholders and around 4,000 depositors. Patan Appellate Court appointed Upadhyaya as investigation officer on July 29 as per the Insolvency Act 2007. This is the first of its kind of case in the financial history of Nepal that the investigation officer himself has not got his fee though his payment comes as the first priority. The Court will decide the fee of the investigation officer.

No Work No Pay, Warns Finance Minister Pandey

Finance Minister Surendra Pandey today said that the gov ernment is in favour of a `No Work, No Pay' policy.

Addressing the 48th anniversary gathering of Employment Provident Fund, he said that the evaluation of employees should be based on performance. "The trade unions should be more responsible," he said adding that the government is trying to implement culture of carrot-and-stick.

EPF has around 4,40,000 depositors and is a member of the International Social Security Association (ISSA). "The government has given more priority to social security," said the finance minister, who has allocated Rs 8 billion in the budget for social security. The government has also formed a task force to recommend the modalities of social security that can pay unemployed benefit while one is out of work.

"When one is working, one pays tax and when one is out of work one gets the benefit," he added.

Pandey also opined that without economic development, a country cannot develop. "Economic development is key to national unity as well," he said suggesting EPF to invest in hydropower projects that can bring development and unite the nation. "However, lack of institutional cooperation has made the progress of 456 MWUpper Tamakoshi -- a mega hydel project where EPF has committed to investing Rs 12 billion -- unsatisfactory," he said showing his displeasure over Nepal Electricity Authority's inability to accelerate the project.

EPF has been managing Rs 79.15 billion at present.

HAN Seeks PM's Aid in China

Hotel Association Nepal (HAN) has urged Prime Minister Madhav Kumar Nepal to promote Nepal in China during his visit there. A delegation led by HAN president Prasiddha Bahadur Pandey meet PM Nepal today and briefed him on the possibility of the country's promotion in China.

Pandey urged PM Nepal to mobilize the diplomatic mission and private sector regarding this issue for the benefit of the Nepali tourism sector. He added that the country should initiate steps to take a soft loan from Axim Bank of China to build a regional airport in Pokhara, a major tourist destination.

The Ministry of Finance has asked the bank for the loan.

Pandey also requested the PM to create a suitable environment between Nepali and Chinese private sector for the expansion of Nepal's tourism industry. He also urged the PM to solve labour-related issues in tourism industry. A high level committee should be made to solve the problems permanently, he said.

HAN also requested that hotels and lodges in Chitwan National Park area be reopened by September 20.

They are lying closed since July 16 after their lease contract expired.

Govt-FNCCI PPP Bid to Devise Effective Export Strategy for Country

In a public-private partnership approach, the Ministry of Commerce and Supply (MoCS) and Federation of Nepalese Chambers of Commerce and Industry (FNCCI) organized a seminar on Nepal Trade Integration Strategy (NIST) and Export Potential Assessment (EPS) here today.

The seminar was supported by DFID, the government of Finland, International Trade Center (ITC) and United Nations Development Program (UNDP).

The seminar prepared a trade strategy that will help identify the goods that can be promoted as export items. The strategy will help integrate Nepal in World Trade Organization (WTO) system and provide benefits of globalization.

The seminar comprehensively discussed Nepal Trade Strategy Report prepared in 2004 and incorporated the latest developments in the new strategy. The topics of the discussion were identification of export goods, problems in export, solutions to problems and rules and regulations for export promotion. The strategy will help the government make policies for international trade and export promotion.

Speaking on the occasion, FNCCI president Kush Kumar Joshi stressed on export promotion. "Without shifting gears from import-based to export-oriented, our country's economy cannot be sustainable,"

he said. The need is to should identify goods with export potential, solve current problems and promote Nepali goods in the international market, he said.

Economic experts Binod Karmacharya, Ramesh Chitrakar, Murari Gautam, Sajjanbir Singh Thapa as well as Thierry Noyelle and Thierry Paulmier presented their papers in the seminar. MoCS secretary Purushottam Ojha, joint secretary Dr Badri Pokhrel, representatives of UNDP and FNCCI's Rajendra Bahadur Shrestha also expressed their views on the issue.

Nokia Offers Winners

Neoteric Nepal Pvt Ltd and Paramount Electronics Pvt Ltd -- the authorized distributors of Nokia -- in Nepal and authorised retail partner Mobiletron have announced the winners of their second lucky draw. Persons with coupon no 201127 (Bibek Adhikari, Bharatpur12) and Coupon No 116409 (Ritu Saraogi) won a Bajaj Platina 100 Cc bike each. Sixteen persons won mobile phones and six others won Rs 5000 cash each.

Third Carpet Mela

Direction Nepal Pvt Ltd for the third time is organising `Carpet Mega Sale 2009'. The exhibition will be held from September 1825, read a press release. Ten exclusive Nepali carpet manufacturers and exporters are participating in the event. It will provide a forum for the latest carpet displays and create awareness about Nepalese carpets and promote carpet industries. The organisers expect a turnout of 20,000 visitors at the carpet sale.

Nepal in Canton Fair

Nepal is to participate in the 106th session of China Import Export Fair (Canton fair) that will be held from October 15 to November 4 in Guangzhou of China. Two Nepali handicraft companies will participate, a Nepal-China Chambers of Commerce and Industry (NCCCI) press note stated. NCCCI president Rajesh Kaji Shrestha will lead a delegation there. The fair is split into three segments -- electronics-machineries, consumer goods-home appliances and textile-garments.

Himstar's Scheme

Himstar TV has brought `Aba 5 Lakhko Jhatka' scheme for its customers. The manufacturer of Himstar TV -- Him Electronics Pvt Ltd -- is one of Nepal's leading consumer electronics distributor & manufacturer. On every purchase of Himstar TV, customers will get a scratch card and can win instant cash prize up to Rs 5 lakh, said the company that brings various prize schemes and offers every year and which has launched this sure-shot cash prize scheme targeting Dashain and Tihar festivals.

NOC is Back in the Red

10-month profit cycle ends; Rs 3.60 loss on per litre diesel

Nepal Oil Corporation (NOC) is bearing Rs 3.60 loss on per litre of diesel.

According to the new rate list that NOC received yesterday from its sole petroleum products supplier Indian Oil Corporation (IOC), its per litre loss in diesel has come down to Rs 3.60 from the rate it received on September 1.

"The loss on per litre of diesel then was Rs 4.91 and Rs 87.88 on a cylinder of cooking gas," said NOC managing director Digambar Jha.

On every 1st and 15th of the English calender month, NOC receives the new rate of diesel, kerosene and petrol from its supplier IOC. However, the rate of cooking gas is revised -- according to the international market price -- on the first of every English month. NOC, however, is in profit in petrol and kerosene.

The sole distributor of petroleum products in Nepal started downward adjustment of the price of petroleum products since last October when international prices plunged.

"NOC was in loss in the first three months of the last fiscal year 2008-09 -Shrawan, Bhadra and Ashwin -- but it started going into profit from the fourth month of fiscal 2008-09,"

Jha said adding that it seems that the last 10month profit cycle has come to an end as the price of petroleum products have started going up in the international market.

"NOC has posted a Rs 40 million loss and it might increase according to the new rate," Jha added. However, the 10-month profit cycle helped NOC pay Rs 1.40 billion and Rs 1.80 billion dues of IOC and domestic commercial banks, respectively. "Currently, Rs 2.10 billion of the Employees Provident Fund (EPF) and Rs 830 million of Citizens' Investment Trust (CIT) are yet to be paid," he said. NOC's cumulative dues come to Rs 10.84 billion including the government, EPF and CIT by August 31.

"Of the total dues, Rs 1.78 billion is an urgent need," said Jha. NOC has a transaction of Rs 60 billion worth of petroleum products. NOC contributes around Rs 10 billion to the national coffers as customs, VAT and other taxes.

Due to the growing demand for petroleum products, NOC has not been able to invest in infrastructure development. "Apart from planning for wellequipped lab to test the quality of petroleum products, NOC has recently started estimation and designing of new depos in Charali of Jhapa and Mahendranagar of Dhanusha," he added.

Made in Nepal Readywear

A clothing brand owned by Posak Int'l Nepal Pvt Ltd -- has launched its range of ready-to-wear casual garments. POZAK is a Nepali brand produced with the expertise of various partners who have been in the garment industry for more than 15 years and worked for renowned brands of the world, read a press release.

The made-in-Nepal brand is in its first phase of market launch with the launch slogan `Support Your Local Brand' and has a long-term vision of expanding in various parts of Nepal. This brand targets to fulfill the requirements of the meticulous. POZAK's aim is to provide people comfort, style, quality and above all affordable ready-to-wear casual garments made in Nepal. It targets today's generation with its products range -Tee-shirts, pullovers, sweat shirts, jeans and many more.

`Govt Indifferent to SSI Sector'

Only 50 per cent of the total two lakh cottage and small t scale industries established a are operating. Cottage p and small acale industrial- a ists during a programme to- p day complained that com- s pared to large scale indus- s tries, the small scale indus- C tries are deprived of facili- d ties for their promotion and a development. t Department of Cottage and Small Scale Industry i acting director Gokul t Prasad Dhital said, "Cottage and small scale industries in the rural areas need to t be developed, and for t this a public-private ap- p proach is essential." t He added that in total 10 P per cent industrial GDP, t small scale industries con- t ribute 90 per cent to it.

here are more than 40,000 ower level small industrialsts. According to Federaion of Nepalese Cottage nd Small Industry (FNCSI) resident Lata Pyakurel, s there is no separate lan and policy for mall scale industries this ector is always overlooked.

ompared to large scale industries, small industries re bound to pay more inerest on loans.

"We need a separate minstry and plans for this secor," said Pyakurel.

Minister of Industries Mahendra Yadav assured of he development of indusries through the industrial olicy. Minister Yadav said he proposal for Industrial olicy has been passed to he financial committee of he cabinet and the Ministry along with the Home Ministry is working to ensure industrial security.

Speaking on the occasion, Federation of Handicraft Association of Nepal (FHAN) president Bikas Ratna Dhakwa focused on the introduction of needbased programme and its exact and effective evaluation. Dhakwa said handicrafts are exported to 42 countries and export increased by 13 per cent over the last fiscal year's.

Federation of Nepalese Chambers of Commerce and Industry vice-president Pradeep Jung Pandey said an investment-friendly environment was lacking. State Minister for Industries Dan Bahadur Chaudhary state minister called for resource mobilisation and utilisation.

DoC Starts Hotline to Curb Price Hike

Department of Commerce (DoC) has started Hotline Telephone Service (HTS) from today to curb unnatural price hike and black marketing after chief secretary Madhav Prasad Ghimire's high level team had advised setting up HTS in DoC and district administration offices (DOAs).

"DoC has set up permanent HTS," said inspection officer Kamal Bahadur Thapa. HTS is available for consumers in Kathmandu, Bhaktapur and Lalitpur districts. They call at 4243939 to report illegularities, he said assuring that DoC will take prompt action.

DAOs in Kathmandu Valley have not set up HTS yet. "DoC doesn't have information about it," said Thapa.

An officer at Kathmandu DAO said DAOs need HTS.

DoC has intensified market inspection since Sunday to stop irregularities during Dashain, Tihar and Chhath.

"Two teams are monitoring markets in Kathmandu valley on all working days,"

said Thapa. DoC has provided token money Rs 15,000 for Tarai, Rs 10,000 for hilly and Rs 7,000 for mountainous districts.

Meanwhile, DoC has forwarded two cases of irregularities to the district inspection officer's office here for filing court cases. DoC forwarded the cases of Pakawan brand edible oil and Chandra Stores of Chabahil. The team had found date-expired pouches of Pakawan brand edible oil last week.

Chandra Stores was found blackmarketing subsidized sugar from Salt Trading Corporation (STC).

"Our team found Chandra Stores was selling STC's subsidized sugar at Rs 62 per kg," Thapa said. STC has provided the sugar for selling at Rs 53 per kg.