Local farmers have suffered loss worth more than Rs 200 million due to the strike launched by tea workers. Farmers have not been able to sell green leaves to tea producers ever since the workers launched strike 10 days ago, demanding pay hike.
Agitating workers have brought harvesting and processing of tea in key districts -- Ilam, Dhankuta and Terhathum - to a grinding halt.
They have been putting pressure on employers do adjust their salary and other benefits as per March 24 understanding reached between the trade union representatives and employers.
Farmers in these three districts alone harvest around 140,000 kg of green leaves every day. Daily production of green leaves in Jhapa hovers around 500,000 kg.
Local farmers are worried as there is no indication of the strike ending anytime soon.
“We are losing sleep because of the protest launched in the peak harvesting season when we get good prices for our produce,” said Dambar Katuwal, a farmer in Kanyam of Ilam.
March and April months are the key harvesting season for quality tea.
Farmers have no option but to rely on local processors as processors in Darjeeling of India have stopped buying Nepali green leaves because of the lack of quality testing lab to ascertain that the leaves are free from pesticide residue.
According to the National Tea and Coffee Development Board, a total of 6,772 farmers in eastern districts, excluding 7,693 in Jhapa, are involved in tea farming.
Infuriated by protracted strike by tea workers that has brought tea harvesting and processing to a grinding halt, local farmers have been obstructing vehicular movements and market along Panchakanya-Phikkal-Kanyam section of Mechi Highway since Friday.
Transportation of dairy products has also been affected along the highway due to agitation of the tea farmers.
Wednesday, April 27, 2011
High-level panel to control revenue leakages
The government on Tuesday formed a high-level panel led by Shanta Bahadur Shrestha, director general of the Department of Revenue Investigation (DRI), to control revenue leakage by looking into complaints regarding growing cases of smuggling of goods.
“The panel will initiate its works immediately. It will also issue on the spot instructions in the course of field inspections to control revenue leakage,” reads a press statement issued by the Ministry of Finance.
Other members of the High-level Revenue Leakage Control Team are Chudamani Sharma, joint secretary at the Ministry of Home Affairs, Deputy Inspector General of Police, Parshu Ram Khatri and Deputy Inspector General of Armed Police Force Sushil Kumar Shrestha. Ananda Raj Dhakal, deputy director general of Department of Customs, is the member secretary of the committee.
A special meeting on revenue leakage chaired by Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari decided to form the five-member panel.
Revenue Secretary Krishna Hari Baskota, Home Secretary Dr Gobinda Kusum, Inspector General of Police Ramesh Chand Thakuri, Inspector General of Armed Police Force Sanat Basnet and senior officials from Department of Customs, DRI and In-land Revenue Department were also present in the meeting.
“The panel will initiate its works immediately. It will also issue on the spot instructions in the course of field inspections to control revenue leakage,” reads a press statement issued by the Ministry of Finance.
Other members of the High-level Revenue Leakage Control Team are Chudamani Sharma, joint secretary at the Ministry of Home Affairs, Deputy Inspector General of Police, Parshu Ram Khatri and Deputy Inspector General of Armed Police Force Sushil Kumar Shrestha. Ananda Raj Dhakal, deputy director general of Department of Customs, is the member secretary of the committee.
A special meeting on revenue leakage chaired by Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari decided to form the five-member panel.
Revenue Secretary Krishna Hari Baskota, Home Secretary Dr Gobinda Kusum, Inspector General of Police Ramesh Chand Thakuri, Inspector General of Armed Police Force Sanat Basnet and senior officials from Department of Customs, DRI and In-land Revenue Department were also present in the meeting.
Syakar showcases Philips range
Syakar Company, Philips distributor in Nepal, is organising a showcase of the brands latest products in Kathmandu. The event will be coinciding with Philips Consumer Lifestyle Distributors Seminar 2011 that is also being held in Kathmandu. The products showcased include Philips 3D Television, Fidelio range of docking speakers, AirFryers and some LCD and LED television sets, home theatre systems, music systems, Blu-ray disk players, docking stations, kitchen appliances, irons, vacuum cleaners and many other appliances. The products will be open for view by general public from tomorrow at Hotel Hyatt Regency.
The showstopper among television sets is the world’s first cinema proportioned 3D TV, the Philips 58PFL9955H Cinema 21:9 LCD TV.
As an addition to its energy saving home appliances, the brand has introduced EnergyCare irons – a range of five innovative steam irons that automatically save 20 per cent of energy while ironing. Energy thus saved could be enough to light thirty five 40W light bulbs for the duration of ironing sessions. The EnergyCare irons are designed to effortlessly remove creases from garments while automatically saving energy. The powerful 2400W irons provides 35 gm of steam per minute and an extra 110 gm steam boost for stubborn creases.
The event will also showcase Philips AirFryer with its patented Rapid Air Technology. The unique AirFryer can deep-fry the food items without using oil. The AirFryer combines fast-circulating hot air with a grill element to fry the foods with air instead of oil-prepared food with up to 80 per cent less fat. As the AirFryer does not require the use of oil, it reduces the smoke and oil odours of regular cooking. Philips is also showcasing its extensive range of Fidelio docking speakers that will allow the listener to hear details of their favourite music on their portable music devices. The Philips Fidelio Soundsphere docking speaker also utilises Airplay to seamlessly play music over a home Wi-Fi network from iTunes on Mac and PC, iPhone and iPad and iPod touch.
The showstopper among television sets is the world’s first cinema proportioned 3D TV, the Philips 58PFL9955H Cinema 21:9 LCD TV.
As an addition to its energy saving home appliances, the brand has introduced EnergyCare irons – a range of five innovative steam irons that automatically save 20 per cent of energy while ironing. Energy thus saved could be enough to light thirty five 40W light bulbs for the duration of ironing sessions. The EnergyCare irons are designed to effortlessly remove creases from garments while automatically saving energy. The powerful 2400W irons provides 35 gm of steam per minute and an extra 110 gm steam boost for stubborn creases.
The event will also showcase Philips AirFryer with its patented Rapid Air Technology. The unique AirFryer can deep-fry the food items without using oil. The AirFryer combines fast-circulating hot air with a grill element to fry the foods with air instead of oil-prepared food with up to 80 per cent less fat. As the AirFryer does not require the use of oil, it reduces the smoke and oil odours of regular cooking. Philips is also showcasing its extensive range of Fidelio docking speakers that will allow the listener to hear details of their favourite music on their portable music devices. The Philips Fidelio Soundsphere docking speaker also utilises Airplay to seamlessly play music over a home Wi-Fi network from iTunes on Mac and PC, iPhone and iPad and iPod touch.
Nepal slips in global IT ranking
Despite advancement in information technology, Nepal has slipped seven positions in Global Information Technology Report published by the World Economic Forum.
Nepal has been ranked in 131st position with score of 2.97 amongst 138 nations on the basis of Network Readiness Index.
The report is considered one of the most comprehensive international assessments of the impact of information communication technology on development process.
The index of Network Readiness considers three dimensions -- general business, regulatory and infrastructure, examining how prepared the countries are to use ICT effectively.
Sweden and Singapore are in the first two positions with score of 5.6 and 5.59 respectively.
Nepal is behind other south Asian countries like India, Sri Lanka, Pakistan and Bangladesh. India is in the 48th position, whereas Sri Lanka, Pakistan and Bangladesh are in 66th, 88th and 115th position respectively.
Five Asian countries -- Singapore, Taiwan, South Korea, Hong Kong and Japan - feature in the top 20 list.
Nepal has been ranked in 131st position with score of 2.97 amongst 138 nations on the basis of Network Readiness Index.
The report is considered one of the most comprehensive international assessments of the impact of information communication technology on development process.
The index of Network Readiness considers three dimensions -- general business, regulatory and infrastructure, examining how prepared the countries are to use ICT effectively.
Sweden and Singapore are in the first two positions with score of 5.6 and 5.59 respectively.
Nepal is behind other south Asian countries like India, Sri Lanka, Pakistan and Bangladesh. India is in the 48th position, whereas Sri Lanka, Pakistan and Bangladesh are in 66th, 88th and 115th position respectively.
Five Asian countries -- Singapore, Taiwan, South Korea, Hong Kong and Japan - feature in the top 20 list.
Ganpati Jewellers offer
Shree Ganpati Jewellery is offering sure shot prizes for anyone who buys jewellery over Rs 20,000 by giving them a scratch card where there are definite prizes like refrigerators, microwaves, rice cookers and many more electrical appliance, on the first anniversary of the store.
Jewellry has not lost its appeal: Traders
One thing people invest in is jewellry and the trend of buying jewellry has been constant over the years. The surging price of gold as well as silver hasn’t hampered the steady sale of jewellry. Be it special occasions like weddings, anniversaries and festivals, people look to buy jewellry as and when they can, say traders.
“Though the sale of jewellry is consistent it does go up during weddings and other such occasions. The price rise in gold may have slowed down the business but it hasn’t come to a complete halt,” said Rupa Tamrakar, a jeweller at Manakamana Jewellry in the capital.
According to Tamrakar, the purchasing power is pretty high and each store provides many options for their customers. “Many people who are regulars buy from one distinct store or get jewellry made to their taste and as per budget. Just because gold and silver prices have gone up, it doesn’t mean that people have stopped buying jewellry completely,” she added.
Even though business hasn’t been considerably hampered, it has become slow. But jewellry sellers have not felt a strong pinch. “There are good days and bad days. People buying gold has been fewer now and that is expected. The fluctuation in the world market will definitely show a fluctuation in sales,” said Shakti Kumar Begani, proprietor of Shree Ganpati Jewellers.
The lack of machines to test the authenticity of metals is proving to be a huge problem for jewellers as well as consumers. “There are no machines to test the authenticity of gold and other metals which really brings reliability issues in the picture, causing problems for buyers as well as sellers. The government needs to bring in these machines also so that export of jewellry can take off since we are now making jewellry in Nepal itself,” added Begani. More than 5,000 people are employed in the jewellry making business. It provides employment as well as contribution to the country’s economy. “We need to open up the jewellry export sector and for that we need to get machines to check the authenticity of precious metals. As soon as that is done, exports can take place, making contribution to the economy even more effectively,” added Begani.
This year has seen gold prices go out of control, causing gold trade to slow down considerably.
“Though the sale of jewellry is consistent it does go up during weddings and other such occasions. The price rise in gold may have slowed down the business but it hasn’t come to a complete halt,” said Rupa Tamrakar, a jeweller at Manakamana Jewellry in the capital.
According to Tamrakar, the purchasing power is pretty high and each store provides many options for their customers. “Many people who are regulars buy from one distinct store or get jewellry made to their taste and as per budget. Just because gold and silver prices have gone up, it doesn’t mean that people have stopped buying jewellry completely,” she added.
Even though business hasn’t been considerably hampered, it has become slow. But jewellry sellers have not felt a strong pinch. “There are good days and bad days. People buying gold has been fewer now and that is expected. The fluctuation in the world market will definitely show a fluctuation in sales,” said Shakti Kumar Begani, proprietor of Shree Ganpati Jewellers.
The lack of machines to test the authenticity of metals is proving to be a huge problem for jewellers as well as consumers. “There are no machines to test the authenticity of gold and other metals which really brings reliability issues in the picture, causing problems for buyers as well as sellers. The government needs to bring in these machines also so that export of jewellry can take off since we are now making jewellry in Nepal itself,” added Begani. More than 5,000 people are employed in the jewellry making business. It provides employment as well as contribution to the country’s economy. “We need to open up the jewellry export sector and for that we need to get machines to check the authenticity of precious metals. As soon as that is done, exports can take place, making contribution to the economy even more effectively,” added Begani.
This year has seen gold prices go out of control, causing gold trade to slow down considerably.
Nespe plunges five-year low to 356.88 points
Commercial banks, development banks, finance companies and insurance companies — the key movers and shakers of the secondary market — pulled the Nepse down to five year’s low of 356.88 points today.
The secondary market has not been performing well in the last four months due to over flooded shares and low investors’ confidence.
Today’s key losers are Everest Finance (Rs 139 per until share), Standard Chartered Bank Nepal (Rs 25 per unit share) and Nepal SBI Bank (Rs 24 per until share).
The banking sub group lost 2.42 points to close at 300.09 points, whereas finance companies and insurance companies shed 1.01 points and 1.59 points respectively. The development banks sub group lost 0.86 point but hydropower companies sub group gained 0.77 point, though it could not rescue secondary market.
The market capitalisation has also dropped to Rs 317,155.88 million, whereas floated market capitalisation stood at Rs 69,143.05 million.
The secondary market has not been performing well in the last four months due to over flooded shares and low investors’ confidence.
Today’s key losers are Everest Finance (Rs 139 per until share), Standard Chartered Bank Nepal (Rs 25 per unit share) and Nepal SBI Bank (Rs 24 per until share).
The banking sub group lost 2.42 points to close at 300.09 points, whereas finance companies and insurance companies shed 1.01 points and 1.59 points respectively. The development banks sub group lost 0.86 point but hydropower companies sub group gained 0.77 point, though it could not rescue secondary market.
The market capitalisation has also dropped to Rs 317,155.88 million, whereas floated market capitalisation stood at Rs 69,143.05 million.
Nepal to host int´l hoteliers´ meet
After almost a half century, International Hotel and Restaurant Association (IHR&A) is holding its next world congress in Kathmandu in the first week of December.
“It will definitely help promote Nepal Tourism Year 2011,” said Prime Minister Jhala Nath Khanal during the meeting with the association’s president Dr Ghassan Aidi, who is on Nepal visit now.
According to Foreign Affairs advisor to PM Milan Raj Tuladhar, the visiting president Aidi has called on the PM at his office today.
The premier welcomed the leader of the world hoteliers in Nepal and mentioned that “Nepal looks forward to become a major tourist destination”, Tuladhar said quoting the Prime Minister. “The association had held one of its previous congresses in Nepal way back in 1968,” Aidi said, adding that it would like to make the new bigger congress in December.
He also sought support of the Prime Minister for the congress. The PM, on the occasion, thanked him for his efforts to hold international meet in Nepal and extended his full support.
“With three hundred thousand hotels and eight hundred thousand restaurants as its members, IHR&A is a big organisation and look forward to bring them to Nepal in December,” according to Aidi. Hotel Association of Nepal president Prasiddha Bahadur Pandey was also present during the discussion.
“It will definitely help promote Nepal Tourism Year 2011,” said Prime Minister Jhala Nath Khanal during the meeting with the association’s president Dr Ghassan Aidi, who is on Nepal visit now.
According to Foreign Affairs advisor to PM Milan Raj Tuladhar, the visiting president Aidi has called on the PM at his office today.
The premier welcomed the leader of the world hoteliers in Nepal and mentioned that “Nepal looks forward to become a major tourist destination”, Tuladhar said quoting the Prime Minister. “The association had held one of its previous congresses in Nepal way back in 1968,” Aidi said, adding that it would like to make the new bigger congress in December.
He also sought support of the Prime Minister for the congress. The PM, on the occasion, thanked him for his efforts to hold international meet in Nepal and extended his full support.
“With three hundred thousand hotels and eight hundred thousand restaurants as its members, IHR&A is a big organisation and look forward to bring them to Nepal in December,” according to Aidi. Hotel Association of Nepal president Prasiddha Bahadur Pandey was also present during the discussion.
Arthako Artha turns 18
Arthako Artha — an oldest economic news-based TV programme — planning to start a separate TV channel. “We are planning to launch an economic and business news channel in near future,” said Hridaya Raj Gautam MD of Independent Business News (IBN) that in turning 18 years of its operations. “It is currently preparing for ground works,,” he said, adding that it is also training human resources. “We are also planning to provide economic journalism training in districts.”
Grande Hospital
Soon to be started Grande Hospital has entered into an agreement with Thailand’s Samitivej’s Hospital for the management of the hospital for certain years. The hospital promoted by the Jyoti Group is situated at Kathmandu’s Dhapasi and will start operations from next year. This 14-storey hospital will have eight operation theatres. The total capitla outlay for the commissioning of the hospital will be Rs 1.4 billion.
Wednesday, April 20, 2011
Migrant worker departure up 19 percent
The number of Nepalis leaving for overseas employment surged 19.87 percent in the first nine months of the current fiscal year compared to the corresponding period last year. The growth has been supported by increased hiring by major destinations like Malaysia, the United Arab Emirates and Qatar.
According to the Department of Foreign Employment, departures of migrant workers reached 240,269 during the nine-month period against 200,442 in the same period last year. They included 5,922 women workers.
The department said that outbound would have been greater if not for the unrest in the Middle East. The trend of leaving for jobs in Libya, Bahrain and Oman has declined lately because of the conflict in these countries.
“There has been a negative impact of the unrest in the Middle East during the last few months. However, the overall hiring from Nepal has increased,” said Chandra Man Shrestha, acting director general of the department. He added that departures had increased with spurred demand from Malaysia and Qatar in particular.
During the review period, Malaysia took in 80,370 workers from Nepal, up from 68,876. Qatar, the second largest job market, absorbed 65,365 workers, a whopping increment of 53.67 from 42,535 previously with increased demand from the infrastructure sector targeting the 2022 Soccer World Cup. Similarly, departures to Saudi Arabia and the UAE rose from 44,281 to 46,906 and from 25,628 to 29,109 respectively.
Despite the increased hiring from major labour destinations, the growth rate of workers leaving the country, however, has declined to the lowest 0.17 percent in the ninth month (mid-March to mid-April). The growth rate was at 62.83 percent in the third month.
During the ninth month, a total of 29,606 workers, including 958 female, left the country for foreign employment. The figure in the same period last year was at 29,555. Foreign employment agencies say that they have not been able to supply work force as expected this year because of unrest in the Middle East and shortage of passport as well.
“Demands are not coming significantly except from Qatar,” said Kumud Khanal, general secretary of the Nepal Association of Foreign Employment Agencies. He said the passport shortage problem has also been barring potential workers form leaving the country.
Due to the fighting in the Middle East, departures to Libya, Oman and Bahrain have dropped; and the department has also stopped issuing permits to work in these countries. Shrestha said that the government had been mulling reopening Oman with increased pressure from labour outsourcing agencies.
“The Ministry of Foreign Affairs is analyzing the situation to find out if it is okay to send workers there,” added Shrestha. Oman hired 1,568 workers during the first eight months of the current fiscal year. Likewise, Bahrain, considered to be one of the best labour markets in the Middle East, provided jobs to 2,902 Nepalis.
According to the Department of Foreign Employment, departures of migrant workers reached 240,269 during the nine-month period against 200,442 in the same period last year. They included 5,922 women workers.
The department said that outbound would have been greater if not for the unrest in the Middle East. The trend of leaving for jobs in Libya, Bahrain and Oman has declined lately because of the conflict in these countries.
“There has been a negative impact of the unrest in the Middle East during the last few months. However, the overall hiring from Nepal has increased,” said Chandra Man Shrestha, acting director general of the department. He added that departures had increased with spurred demand from Malaysia and Qatar in particular.
During the review period, Malaysia took in 80,370 workers from Nepal, up from 68,876. Qatar, the second largest job market, absorbed 65,365 workers, a whopping increment of 53.67 from 42,535 previously with increased demand from the infrastructure sector targeting the 2022 Soccer World Cup. Similarly, departures to Saudi Arabia and the UAE rose from 44,281 to 46,906 and from 25,628 to 29,109 respectively.
Despite the increased hiring from major labour destinations, the growth rate of workers leaving the country, however, has declined to the lowest 0.17 percent in the ninth month (mid-March to mid-April). The growth rate was at 62.83 percent in the third month.
During the ninth month, a total of 29,606 workers, including 958 female, left the country for foreign employment. The figure in the same period last year was at 29,555. Foreign employment agencies say that they have not been able to supply work force as expected this year because of unrest in the Middle East and shortage of passport as well.
“Demands are not coming significantly except from Qatar,” said Kumud Khanal, general secretary of the Nepal Association of Foreign Employment Agencies. He said the passport shortage problem has also been barring potential workers form leaving the country.
Due to the fighting in the Middle East, departures to Libya, Oman and Bahrain have dropped; and the department has also stopped issuing permits to work in these countries. Shrestha said that the government had been mulling reopening Oman with increased pressure from labour outsourcing agencies.
“The Ministry of Foreign Affairs is analyzing the situation to find out if it is okay to send workers there,” added Shrestha. Oman hired 1,568 workers during the first eight months of the current fiscal year. Likewise, Bahrain, considered to be one of the best labour markets in the Middle East, provided jobs to 2,902 Nepalis.
DRI tightens checks at Customs
The Department of Revenue Investi-gation (DRI) is tightening checks on goods at customs offices in a bid to curb tax evasion.
Apart form checking quality and quantity of goods cleared from customs, the DRI will now also check whether businessmen have paid VAT and income tax.
The department said it took such a measure to discourage businessmen from evading tax by changing firms frequently and showing zero income. Some firms operating through the Tatopani Customs have also been found to be involved in such practices, according to DRI.
The DRI will not only check containers, but also look into how businessmen seek to evade tax, said DRI Director General Shanta Bahadur Shrestha at an interaction on ‘business transaction from Tatopani customs’. “Now, investigation will not be limited to customs revenue,” he added.
The department is set to install software in customs offices which will inform whether a businessman has paid VAT and income tax right after details of his/her customs clearance document is entered. The DRI has also been checking whether goods are correctly valued.
The DRI has taken Keshav Karki of Karuna Enterprises into custody after his firm showed zero profit for three consecutive years. The department has also confiscated his goods and filed a case against him claiming a fine of Rs 14 million.
The department has also started to check VAT bills of sales while checking containers cleared from the Tatopani Customs. “Even businessmen involved in trading for the last several years evade tax by changing name of firms,” said DRI Deputy Director General Sishir Kumar Dhungana. “The customs office will also check whether they have submitted their monthly and four monthly details of their transaction.”
Apart form checking quality and quantity of goods cleared from customs, the DRI will now also check whether businessmen have paid VAT and income tax.
The department said it took such a measure to discourage businessmen from evading tax by changing firms frequently and showing zero income. Some firms operating through the Tatopani Customs have also been found to be involved in such practices, according to DRI.
The DRI will not only check containers, but also look into how businessmen seek to evade tax, said DRI Director General Shanta Bahadur Shrestha at an interaction on ‘business transaction from Tatopani customs’. “Now, investigation will not be limited to customs revenue,” he added.
The department is set to install software in customs offices which will inform whether a businessman has paid VAT and income tax right after details of his/her customs clearance document is entered. The DRI has also been checking whether goods are correctly valued.
The DRI has taken Keshav Karki of Karuna Enterprises into custody after his firm showed zero profit for three consecutive years. The department has also confiscated his goods and filed a case against him claiming a fine of Rs 14 million.
The department has also started to check VAT bills of sales while checking containers cleared from the Tatopani Customs. “Even businessmen involved in trading for the last several years evade tax by changing name of firms,” said DRI Deputy Director General Sishir Kumar Dhungana. “The customs office will also check whether they have submitted their monthly and four monthly details of their transaction.”
TIA gives the nod to constant descent approach system
Tribhuvan International Airport (TIA) has implemented the constant descent approach (CDA) system for aircraft, scrapping the 13-year-old non-precision approach (NOPEN) as per the recommendation of the International Civil Aviation Organization (ICAO).
Marking a major reform at the country’s only international airport, CDA allows big aircraft to make a smooth, constant-angle descent during the landing approach. Instead of approaching an airport in a stair-step fashion, CDA starts ideally from the top of the descent. Aviation experts said that the revised system would also benefit areas close to the airport as it reduces noise pollution. “The system has been revised in line with the regular upgrade of the country’s international airport as per the standards set by ICAO,” said Kishore Thapa, secretary at the Ministry of Tourism and Civil Aviation. He added that the new approach system would be more efficient and safer.
NOPEN known as the “dive and drive” approach has been revised after the ICAO group of experts’ findings recommended that the non-precision approach was riskier. ICAO had asked all the airports to implement CDA. “The new procedure is safer,” said Nepal Airlines Corporation Captain Sharwan Rijal.
The Civil Aviation Authority of Nepal (CAAN) had revised the aircraft approach procedure on March 4. “After the implementation of CDA, we have seen that one steep descent is safer than the traditional ‘dive and drive’ approach,” said Rijal.
Implementation of CDA has drawn reservations from some international airlines. Pilots are required to take training to familiarize themselves with the new system. Qatar Airways had objected to CDA and written to CAAN saying that the high rate of descent was not practicable. “However, the airline has now been following the revised approach system,” an airline source said. According to the Economic Times, Air India pilots had decided not to operate flights to Kathmandu citing that the airline had
not given them system familiarization training after the revision of the approach system at TIA.
“Alleging that there had been no familiarisation training for approach and go around procedures which have been revised for Kathmandu airport, the pilot’s union, Indian Commercial Pilots Association, has asked its members not undertake flights to Nepal’s capital,” writes the Economic Times. As per the company training manual, pilots have to undergo familiarisation training in an Airbus 320 or Airbus 330 simulator. Rijal said it was difficult to adapt to the new rules immediately. “Training is necessary before executing the new approach. Now, a majority of the airlines are comfortable with it,” added Rijal.
Marking a major reform at the country’s only international airport, CDA allows big aircraft to make a smooth, constant-angle descent during the landing approach. Instead of approaching an airport in a stair-step fashion, CDA starts ideally from the top of the descent. Aviation experts said that the revised system would also benefit areas close to the airport as it reduces noise pollution. “The system has been revised in line with the regular upgrade of the country’s international airport as per the standards set by ICAO,” said Kishore Thapa, secretary at the Ministry of Tourism and Civil Aviation. He added that the new approach system would be more efficient and safer.
NOPEN known as the “dive and drive” approach has been revised after the ICAO group of experts’ findings recommended that the non-precision approach was riskier. ICAO had asked all the airports to implement CDA. “The new procedure is safer,” said Nepal Airlines Corporation Captain Sharwan Rijal.
The Civil Aviation Authority of Nepal (CAAN) had revised the aircraft approach procedure on March 4. “After the implementation of CDA, we have seen that one steep descent is safer than the traditional ‘dive and drive’ approach,” said Rijal.
Implementation of CDA has drawn reservations from some international airlines. Pilots are required to take training to familiarize themselves with the new system. Qatar Airways had objected to CDA and written to CAAN saying that the high rate of descent was not practicable. “However, the airline has now been following the revised approach system,” an airline source said. According to the Economic Times, Air India pilots had decided not to operate flights to Kathmandu citing that the airline had
not given them system familiarization training after the revision of the approach system at TIA.
“Alleging that there had been no familiarisation training for approach and go around procedures which have been revised for Kathmandu airport, the pilot’s union, Indian Commercial Pilots Association, has asked its members not undertake flights to Nepal’s capital,” writes the Economic Times. As per the company training manual, pilots have to undergo familiarisation training in an Airbus 320 or Airbus 330 simulator. Rijal said it was difficult to adapt to the new rules immediately. “Training is necessary before executing the new approach. Now, a majority of the airlines are comfortable with it,” added Rijal.
Kansakar vows to buy aircraft for NAC
A day after being acquitted by the Special Court of corruption charges in the Airbus purchase deal, Nepal Airlines Corporation (NAC) executive chairman Sugat Ratna Kansakar said that he would purchase aircraft for the national flag carrier at any cost.
Kansakar made this remark after resuming office on Wednesday at NAC. Addressing the staff, Kansakar expressed his confidence of overcoming any challenge to acquire aircraft for NAC. “I have suffered extremely over the aircraft purchase deal, and I don’t want to let my efforts go in vain,” said Kansakar to appreciative employees during the one-and-a-half-hour long welcome programme.
Although supporters of Kansakar were seen to be enthusiastic, unions and staffers supporting NAC managing director Kul Bahadur Limbu remained absent at the welcome programme. Kansakar and Limbu were at opposite ends regarding NAC’s plan to purchase aircraft from Airbus. After the Commission for the Investigation of Abuse of Authority (CIAA) filed a corruption charge against Kansakar, Limbu was running the show at NAC.
The Special Court on Tuesday acquitted Kansakar and five other NAC officials - deputy managing directors Raju
Bahadur KC and Ganesh Thakur, acting director Gyanendra Purush Dhakal, director Mayur Shumsher Rana and acting deputy director Keshav Raj Sharma — who had been accused of corruption in the Airbus purchase deal. “All the officials will carry on their respective duties from Thursday,” said KC.
On the same occasion, Thakur said that signing of the deal to send the lock-up money to Airbus was one of the happiest moments of his life. “Unfortunately, the purchase process was stopped.”
The acquitted officials pointed out that the aircraft purchase deal was the right move. “Our efforts have proved that we were in favour in NAC,” the team said.
Kansakar made this remark after resuming office on Wednesday at NAC. Addressing the staff, Kansakar expressed his confidence of overcoming any challenge to acquire aircraft for NAC. “I have suffered extremely over the aircraft purchase deal, and I don’t want to let my efforts go in vain,” said Kansakar to appreciative employees during the one-and-a-half-hour long welcome programme.
Although supporters of Kansakar were seen to be enthusiastic, unions and staffers supporting NAC managing director Kul Bahadur Limbu remained absent at the welcome programme. Kansakar and Limbu were at opposite ends regarding NAC’s plan to purchase aircraft from Airbus. After the Commission for the Investigation of Abuse of Authority (CIAA) filed a corruption charge against Kansakar, Limbu was running the show at NAC.
The Special Court on Tuesday acquitted Kansakar and five other NAC officials - deputy managing directors Raju
Bahadur KC and Ganesh Thakur, acting director Gyanendra Purush Dhakal, director Mayur Shumsher Rana and acting deputy director Keshav Raj Sharma — who had been accused of corruption in the Airbus purchase deal. “All the officials will carry on their respective duties from Thursday,” said KC.
On the same occasion, Thakur said that signing of the deal to send the lock-up money to Airbus was one of the happiest moments of his life. “Unfortunately, the purchase process was stopped.”
The acquitted officials pointed out that the aircraft purchase deal was the right move. “Our efforts have proved that we were in favour in NAC,” the team said.
Railway dept demands Rs 7.3b for 8 projects
The proposed Department of Railways (DoR) has sought a budget of Rs 7.30 billion to conduct detailed survey of eight railway projects, including the much-touted East-West Electric Railway.
The government has completed final preparation to convert the Railway Project, which is overseeing works related to railway lines, into the DoR.
“We´ve proposed to spend the major chunk of the proposed budget to conduct detailed project report (DPR) of different railway projects,” a high level source at the Ministry of the Physical Planning and Works (MoPPW) told Republica on Wednesday.
The project has demanded Rs 2.35 billion to prepare DPR of the multi-billion dollar East-West and Kathmandu-Pokhara Electric Railway projects. Similarly, the cost of preparing DPR for railway lines connecting major towns in Tarai to nearby Indian border points has been estimated at Rs 500 million.
“We´ve demanded Rs 500 million to prepare DPR of four railway lines -- Itahari-Biratnagar, Pathlaiya-Birgunj, Butwal-Bhairahawa and Kohalpur-Nepalgunj -- that connect cities along the East-West Electric Railway to nearby bordering towns in the budget for the coming fiscal year,” the source said.
Similarly, the project has proposed a budget of Rs 1.3 billion to provide compensation for land to be acquired for railway lines linking Kakarvitta, Bhairahawa and Nepalgunj with bordering Indian towns. It has further demanded Rs 800 million to prepare DPR of railway line connecting the East-West Railway with Kathmandu-Pokhara Railway.
The Railway Project has proposed a budget of Rs 90 million to conduct feasibility study of small railway lines in northern parts of the country.
“The project has also demanded Rs 200 million for institutional development and Rs 100 million for construction of building for the proposed Railways department,” the source said.
The department has set a target of laying down 4,000 km railway tracks across the country over the next two decades.
Meanwhile, the MPPW has proposed a budget Rs 45 billion for the coming fiscal year. Of the amount, Rs 34 billion has been proposed for the Department of Roads. It has demanded Rs 1.5 billion to provide compensation for land to be acquired for the Kathmandu-Tarai Fast Track project. Similarly, it has demanded a total of Rs 1.7 billion to blacktop some sections of the Mid-hills Highway during 2011/12. The government has allocated Rs 1.21 billion for the highway in the current fiscal year.
Likewise, the MoPPW has also proposed Rs 2 billion for the construction of 50 bridges and Rs 820 million for the maintenance of 100 bridges in 2011/12. It has also demanded Rs 60 million for construction of 80 regional roads and Rs 100 million each for the construction of 23 tourism roads in different parts of the country and Chepang road in Chitwan district.
The government has completed final preparation to convert the Railway Project, which is overseeing works related to railway lines, into the DoR.
“We´ve proposed to spend the major chunk of the proposed budget to conduct detailed project report (DPR) of different railway projects,” a high level source at the Ministry of the Physical Planning and Works (MoPPW) told Republica on Wednesday.
The project has demanded Rs 2.35 billion to prepare DPR of the multi-billion dollar East-West and Kathmandu-Pokhara Electric Railway projects. Similarly, the cost of preparing DPR for railway lines connecting major towns in Tarai to nearby Indian border points has been estimated at Rs 500 million.
“We´ve demanded Rs 500 million to prepare DPR of four railway lines -- Itahari-Biratnagar, Pathlaiya-Birgunj, Butwal-Bhairahawa and Kohalpur-Nepalgunj -- that connect cities along the East-West Electric Railway to nearby bordering towns in the budget for the coming fiscal year,” the source said.
Similarly, the project has proposed a budget of Rs 1.3 billion to provide compensation for land to be acquired for railway lines linking Kakarvitta, Bhairahawa and Nepalgunj with bordering Indian towns. It has further demanded Rs 800 million to prepare DPR of railway line connecting the East-West Railway with Kathmandu-Pokhara Railway.
The Railway Project has proposed a budget of Rs 90 million to conduct feasibility study of small railway lines in northern parts of the country.
“The project has also demanded Rs 200 million for institutional development and Rs 100 million for construction of building for the proposed Railways department,” the source said.
The department has set a target of laying down 4,000 km railway tracks across the country over the next two decades.
Meanwhile, the MPPW has proposed a budget Rs 45 billion for the coming fiscal year. Of the amount, Rs 34 billion has been proposed for the Department of Roads. It has demanded Rs 1.5 billion to provide compensation for land to be acquired for the Kathmandu-Tarai Fast Track project. Similarly, it has demanded a total of Rs 1.7 billion to blacktop some sections of the Mid-hills Highway during 2011/12. The government has allocated Rs 1.21 billion for the highway in the current fiscal year.
Likewise, the MoPPW has also proposed Rs 2 billion for the construction of 50 bridges and Rs 820 million for the maintenance of 100 bridges in 2011/12. It has also demanded Rs 60 million for construction of 80 regional roads and Rs 100 million each for the construction of 23 tourism roads in different parts of the country and Chepang road in Chitwan district.
Spa treatments catching up
There has been a marked surge in the number of spas in the valley. In the past one year, many spas have come up in and around the valley.
The trend of visiting spas has recently picked up as people have become open to the idea of visiting spas and body treatment centres for relaxation and treatment purposes. “People’s mindset has changed immensely in the past few years.
Usually, the spas and massage centres were only restricted to Thamel and seemed only to cater to tourists but now most people are open to the ideas of getting a spa treatment,” said Sitaram Adhikari, Manager at Tranquillity Spa, Kupondole.
Tranquillity spa has four branches in the valley while their fifth is opening in Pokhara; it also has a School of spa therapy where people are trained in spa therapy as well as beauty courses.
“The generation of employment is very strong in the spa and beauty sector and at the school of spa therapy we give people the chance to learn the skill and then provide them with employment. The training can last up to six months,”added Adhikari. There are many spas in the valley. The most well known of all are the Harmony spa at Gokarna, Prana, Midas and Tranquillity spa.
“We are one of the oldest spas in Kathmandu and business has really picked up in the recent past. People have certainly become more open to the idea of visiting spas. Now, the clientele is not just restricted to tourists or a certain segment of society,” said Sushil Pathak, manager at Harmony Spa, Gokarna.
The spa trend has grown in the valley extensively in the past one year
The trend of visiting spas has recently picked up as people have become open to the idea of visiting spas and body treatment centres for relaxation and treatment purposes. “People’s mindset has changed immensely in the past few years.
Usually, the spas and massage centres were only restricted to Thamel and seemed only to cater to tourists but now most people are open to the ideas of getting a spa treatment,” said Sitaram Adhikari, Manager at Tranquillity Spa, Kupondole.
Tranquillity spa has four branches in the valley while their fifth is opening in Pokhara; it also has a School of spa therapy where people are trained in spa therapy as well as beauty courses.
“The generation of employment is very strong in the spa and beauty sector and at the school of spa therapy we give people the chance to learn the skill and then provide them with employment. The training can last up to six months,”added Adhikari. There are many spas in the valley. The most well known of all are the Harmony spa at Gokarna, Prana, Midas and Tranquillity spa.
“We are one of the oldest spas in Kathmandu and business has really picked up in the recent past. People have certainly become more open to the idea of visiting spas. Now, the clientele is not just restricted to tourists or a certain segment of society,” said Sushil Pathak, manager at Harmony Spa, Gokarna.
The spa trend has grown in the valley extensively in the past one year
Foreign trade up to Rs 255.96 billion
Foreign trade increased by 1.6 per cent during the first seven month of the present fiscal year.
During the first seven month of the fiscal year 2010-11 total foreign trade of Nepal increased to Rs 255.96 billion compared to same period last fiscal year, revealed Trade and Export Promotion Centre statistics.
Share of Export and Import trade is 15 per cent and 85 per cent respectively in the total foreign trade occurred. As per the TEPC data of total export of Nepal increased by 9.8 per cent that is Rs 38.72 billion while total import increased by 0.3 per cent that is Rs 217.69 billion in comparison to first seven month data of 2009-10. During the last FY export and import ratio was 1:6.2 whereas the ratio has now has become 1:5.7.
The main export items from Nepal are woollen Carpet, Readymade Garment (RMG), Lentils, Polyester, and other textile products, iron, steel, handicraft products, silver jewellery, noodles, toothpaste, tea, ginger, betel nuts, handmade paper, leather, pashmina shawl, and herbs. Woollen carpet worth Rs 2.74 billion was exported in the first seven months
During the first seven month of the fiscal year 2010-11 total foreign trade of Nepal increased to Rs 255.96 billion compared to same period last fiscal year, revealed Trade and Export Promotion Centre statistics.
Share of Export and Import trade is 15 per cent and 85 per cent respectively in the total foreign trade occurred. As per the TEPC data of total export of Nepal increased by 9.8 per cent that is Rs 38.72 billion while total import increased by 0.3 per cent that is Rs 217.69 billion in comparison to first seven month data of 2009-10. During the last FY export and import ratio was 1:6.2 whereas the ratio has now has become 1:5.7.
The main export items from Nepal are woollen Carpet, Readymade Garment (RMG), Lentils, Polyester, and other textile products, iron, steel, handicraft products, silver jewellery, noodles, toothpaste, tea, ginger, betel nuts, handmade paper, leather, pashmina shawl, and herbs. Woollen carpet worth Rs 2.74 billion was exported in the first seven months
Salt Trading Corporation plans 30 pc dividend
Salt Trading Corporation Ltd (STC) has decided to distribute 30 per cent dividend, 10 per cent cash and 20 per cent stock to its share holders.
The decision has to be approved by the Finance Ministry. STC is listed in the secondary market. It is one of the actively traded stocks in the secondary marker and last was trading at Rs 307 on February 22.
STC has listed 247,777-unit shares at Rs 100 paid up value per unit making a total of Rs 24,777,700 listed paid-up value. Its market capitalisation is worth Rs 76,067,539.
Under ‘trading sub-group’s four companies — Salt trading, Bishal Bazaar, Nepal Trading and Nepal Welfare Company — 830,177-unit shares are listed. Of the four, Salt Trading and Bishal Bazaar have Rs 100 paid up value per unit share of each company whereas the remaining two has Rs 50 paid up value making the total paid up value of Rs 78,467,700 of the four. Bishal Bazaar and Salt Trading are the actively traded shares in the secondary market. Meanwhile, Nepse today dropped by 3.18 points to close at 361.12 points thanks to all the six sub-groups traded today ended in r
The decision has to be approved by the Finance Ministry. STC is listed in the secondary market. It is one of the actively traded stocks in the secondary marker and last was trading at Rs 307 on February 22.
STC has listed 247,777-unit shares at Rs 100 paid up value per unit making a total of Rs 24,777,700 listed paid-up value. Its market capitalisation is worth Rs 76,067,539.
Under ‘trading sub-group’s four companies — Salt trading, Bishal Bazaar, Nepal Trading and Nepal Welfare Company — 830,177-unit shares are listed. Of the four, Salt Trading and Bishal Bazaar have Rs 100 paid up value per unit share of each company whereas the remaining two has Rs 50 paid up value making the total paid up value of Rs 78,467,700 of the four. Bishal Bazaar and Salt Trading are the actively traded shares in the secondary market. Meanwhile, Nepse today dropped by 3.18 points to close at 361.12 points thanks to all the six sub-groups traded today ended in r
Nepal improves Asian ranking in telecom network
Nepal improved its score and featured in the top 20 countries in Asia but slipped seven positions down from last year’s 124th position to 131st among 138 nations in Network Readiness Report 2010-11 published by World Economic Forum.
Among the top 20 Asian countries, Nepal ranked 19th with a score of 2.97 but it is at the 131st position in the overall global ranking, where other South Asian countries like India (48), Sri Lanka (66), Pakistan (88) and Bangladesh (115) are ahead of Nepal.
Nepal was ranked 124th with 2.95 score in the Network Readiness Report 2009-10. The country has opened its telecommunications and Information, Communication and Technology (ICT) sector after the popular mass movement of 1990 that overthrew single party system and made way for the liberal economic policy with a multi-party democratic system.
There are three major players – Nepal Telecom, UTL and Ncell – that provide the network connectivity. Besides, there are half a dozen regional telecom service providers apart from 44 Internet Service Providers, currently.
According to the 10th edition of World Economic Forum’s Network Readiness Report, it looks into an ICT-conducive environment as a key precondition of network readiness that requires a society-wide effort and ICT readiness leads to ICT usage and increased impact.
It is the most comprehensive and respected international assessment of the preparedness of economies to leverage the networked economy, providing a unique platform for public-private dialogue on best policies and for determining what actions will further national ICT readiness and innovation potential.
Similarly, the Index comprises of three sub-indices Environment sub-index, Readiness sub-index and Usage sub-index.
The Networked Readiness Index measures the propensity for countries to exploit the opportunities offered by information and communications technology. This year’s coverage includes a record number of 138 economies from both the developing and developed world, accounting for over 98 per cent of global GDP.
“A total of 19 Asian countries in the 2010-2011 featured in the Networked Readiness Index, out of 138 countries worldwide,” the report said, adding that among them Singapore is the most networked nation in Asia.
The Southeast Asian city-state ranked second in the world, behind Sweden. Singapore is also the only Asian country ranked higher than the US worldwide.
Five of the Asian countries – Singapore (2), Taiwan (5), South Korea (10), Hong Kong (12), and Japan (19) – are in the top 20 of this year’s index.
Sweden and Singapore continue to top the rankings of the Global Information Technology Report 2010-2011, Transformations 2.0, confirming the leadership of the Nordic countries and the Asian Tiger economies in adopting and implementing ICT advances for increased growth and development.
Among the top 20 Asian countries, Nepal ranked 19th with a score of 2.97 but it is at the 131st position in the overall global ranking, where other South Asian countries like India (48), Sri Lanka (66), Pakistan (88) and Bangladesh (115) are ahead of Nepal.
Nepal was ranked 124th with 2.95 score in the Network Readiness Report 2009-10. The country has opened its telecommunications and Information, Communication and Technology (ICT) sector after the popular mass movement of 1990 that overthrew single party system and made way for the liberal economic policy with a multi-party democratic system.
There are three major players – Nepal Telecom, UTL and Ncell – that provide the network connectivity. Besides, there are half a dozen regional telecom service providers apart from 44 Internet Service Providers, currently.
According to the 10th edition of World Economic Forum’s Network Readiness Report, it looks into an ICT-conducive environment as a key precondition of network readiness that requires a society-wide effort and ICT readiness leads to ICT usage and increased impact.
It is the most comprehensive and respected international assessment of the preparedness of economies to leverage the networked economy, providing a unique platform for public-private dialogue on best policies and for determining what actions will further national ICT readiness and innovation potential.
Similarly, the Index comprises of three sub-indices Environment sub-index, Readiness sub-index and Usage sub-index.
The Networked Readiness Index measures the propensity for countries to exploit the opportunities offered by information and communications technology. This year’s coverage includes a record number of 138 economies from both the developing and developed world, accounting for over 98 per cent of global GDP.
“A total of 19 Asian countries in the 2010-2011 featured in the Networked Readiness Index, out of 138 countries worldwide,” the report said, adding that among them Singapore is the most networked nation in Asia.
The Southeast Asian city-state ranked second in the world, behind Sweden. Singapore is also the only Asian country ranked higher than the US worldwide.
Five of the Asian countries – Singapore (2), Taiwan (5), South Korea (10), Hong Kong (12), and Japan (19) – are in the top 20 of this year’s index.
Sweden and Singapore continue to top the rankings of the Global Information Technology Report 2010-2011, Transformations 2.0, confirming the leadership of the Nordic countries and the Asian Tiger economies in adopting and implementing ICT advances for increased growth and development.
Sebon inspects infra of aspiring brokers
The new stock brokers’ selection process that started three and half years ago is drawing to a close soon.
The capital market regulator Securities Board of Nepal (Sebon) has conducted on the spot inspection of the establishment of two of the aspirant brokerage firms that have obtained Letter of Intent (LoI) from the regulator earlier. Of the eleven brokerage firms that have obtained the LoI, the representatives of Sebon visited the premises of Dakshinkali Investment and Securities and Kohinoor Investment and Securities Company today to check the infrastructure.
“Sebon officials have inspected our premises as we have completed the set up of required infrastructure as per the regulation,” said Bharat Ranabhat, director of Kohinoor Investment and Securities.
“If they find the setting satisfactory then we will get the license,” he added.
The process that started in November 2007 was interrupted by Commission for Investigation of Abuse of Authority (CIAA). In February 2008, the anti-graft watchdog halted the process, questioning the transparency the day before recommendation test was to take place. Since then, the process could not be resumed due to this very reason.
Finally, after much insistence from all sides the test was conducted in October last year. Of the 134 examinees that appeared in the exam, Nepse selected the highest scoring 34 candidates and recommended their names to Sebon for the final selection on November 2010. The aspirant brokers were required to submit the documents such as feasibility study report, tax clearance certificate, and financial statement of the company since the inception among others.
Once the regulator is satisfied that all the requirements were fulfiled, it will grant LoI as per the provision of Securities Businessperson Regulation, 2064. According to the regulation, the company has to prepare necessary office infrastructure including human resources within six months after the date of receiving notice from Sebon.
Back in 2007, Nepse had decided to add 27 brokers to take the total number of brokers to 50. At that time when the secondary market was enjoying its boom, the limited number of brokers was not sufficient to cater to all the investors.
The capital market regulator Securities Board of Nepal (Sebon) has conducted on the spot inspection of the establishment of two of the aspirant brokerage firms that have obtained Letter of Intent (LoI) from the regulator earlier. Of the eleven brokerage firms that have obtained the LoI, the representatives of Sebon visited the premises of Dakshinkali Investment and Securities and Kohinoor Investment and Securities Company today to check the infrastructure.
“Sebon officials have inspected our premises as we have completed the set up of required infrastructure as per the regulation,” said Bharat Ranabhat, director of Kohinoor Investment and Securities.
“If they find the setting satisfactory then we will get the license,” he added.
The process that started in November 2007 was interrupted by Commission for Investigation of Abuse of Authority (CIAA). In February 2008, the anti-graft watchdog halted the process, questioning the transparency the day before recommendation test was to take place. Since then, the process could not be resumed due to this very reason.
Finally, after much insistence from all sides the test was conducted in October last year. Of the 134 examinees that appeared in the exam, Nepse selected the highest scoring 34 candidates and recommended their names to Sebon for the final selection on November 2010. The aspirant brokers were required to submit the documents such as feasibility study report, tax clearance certificate, and financial statement of the company since the inception among others.
Once the regulator is satisfied that all the requirements were fulfiled, it will grant LoI as per the provision of Securities Businessperson Regulation, 2064. According to the regulation, the company has to prepare necessary office infrastructure including human resources within six months after the date of receiving notice from Sebon.
Back in 2007, Nepse had decided to add 27 brokers to take the total number of brokers to 50. At that time when the secondary market was enjoying its boom, the limited number of brokers was not sufficient to cater to all the investors.
National Industrial Expo begins
The 11th National Industrial Exhibition, which is being organized to promote cottage and small scale industries, started here on Wednesday.
The expo has a total of 160 stalls from 50 different districts, showcasing products like shoes, handicraft made of metal and ceramics, carpets, allo and jute products, pashmina, handmade paper and medicinal herbs, among others.
Inaugurating the exhibition, Prime Minister Jhalanath Khanal highlighted the role of cottage and small industries in national economy. “We need to develop cottage and small industries further by encouraging them to adopt new technology,” said Khanal. He also assured government support to help promote small scale industries and added that the government was committed to provide security to the industrial sector.
Bhaskar Raj Rajkarnikar, senior vice president of Federation of Nepalese Chambers of Commerce and Industry, rued the lack of proper exhibition hall in the country. He further added that the government had turned deaf ear to their demand of developing an international standard exhibition hall.
Commenting on perennial power shortage and industrial insecurity, Rajkarnikar said the nation´s economy would be severely affected if the government did not come up with measures to address insecurity and power woes. “Industrialists are worried because attack on businessmen increasing. The government hasn´t been able to provide security to the business sector,” he added.
Lata Pyakurel, president of FNCSI, said the government should encourage investment in cottage and small scale industries for economic development.
FNCSI is expecting a total of 200,000 visitors during the five-day event. Total turnover at the event is expected to reach Rs 100 million.
The expo has a total of 160 stalls from 50 different districts, showcasing products like shoes, handicraft made of metal and ceramics, carpets, allo and jute products, pashmina, handmade paper and medicinal herbs, among others.
Inaugurating the exhibition, Prime Minister Jhalanath Khanal highlighted the role of cottage and small industries in national economy. “We need to develop cottage and small industries further by encouraging them to adopt new technology,” said Khanal. He also assured government support to help promote small scale industries and added that the government was committed to provide security to the industrial sector.
Bhaskar Raj Rajkarnikar, senior vice president of Federation of Nepalese Chambers of Commerce and Industry, rued the lack of proper exhibition hall in the country. He further added that the government had turned deaf ear to their demand of developing an international standard exhibition hall.
Commenting on perennial power shortage and industrial insecurity, Rajkarnikar said the nation´s economy would be severely affected if the government did not come up with measures to address insecurity and power woes. “Industrialists are worried because attack on businessmen increasing. The government hasn´t been able to provide security to the business sector,” he added.
Lata Pyakurel, president of FNCSI, said the government should encourage investment in cottage and small scale industries for economic development.
FNCSI is expecting a total of 200,000 visitors during the five-day event. Total turnover at the event is expected to reach Rs 100 million.
Citizens Bank to start credit card service
Citizens Bank International on Wednesday announced that it would start credit card service by mid-July.
“We are introducing credit card service as a part of our objective of providing modern banking services to our clients,” said Rajan Singh Bhandari, CEO of the bank.
Speaking at a function organized to celebrate fourth anniversary of the bank, Bhandari also informed that the bank was adding branches in six places -- Bhaktapur, Janakpur, Itahari, Charikot and Simikot of Humla - within fiscal year 2010/11. This will increase the number of branches in the bank´s network to 32.
“We are expanding our network to increase our presence even outside the capital,” Bhandari said, adding, “Our focus will be on opening branches in remote areas so that people there also get access to quality banking service.” He also unveiled the plan of reaching to all 14 zones in the country within the current fiscal year.
As a part of its corporate social responsibility, the bank handed over Rs 100,000 to Nepal Kidney Centre on the day. “We have been continuing our CSR activities in a bid to contribute to the society, especially in the sectors of health and education,” Bhandari added.
The bank also provided Rs 75,000 to Bal Bikas Samaj -- a children home - to finance education of 10 underprivileged students. It also organized blood and eye donation programs to celebrate its 4th anniversary.
Citizens Bank International reported net profit of Rs 170 million during the first nine months of fiscal year 2010/11. “We have become successful in earning high profit despite operating with lower spread rate,” Bhandari said.
The bank collected deposits of Rs 13.86 million and issued loans amounting to Rs 12.60 billion during the period. It has total assets worth Rs 17.73 billion and primary capital of Rs 2.5 billion. The bank plans to increase its paid-up capital to Rs 2 billion soon.
The bank also awarded three branches each in the capital - Koteshwar, Bouddha and New Road - and outside the capital - Biratnagar, Narayanghat and Birgunj - with best performance award.
“We are introducing credit card service as a part of our objective of providing modern banking services to our clients,” said Rajan Singh Bhandari, CEO of the bank.
Speaking at a function organized to celebrate fourth anniversary of the bank, Bhandari also informed that the bank was adding branches in six places -- Bhaktapur, Janakpur, Itahari, Charikot and Simikot of Humla - within fiscal year 2010/11. This will increase the number of branches in the bank´s network to 32.
“We are expanding our network to increase our presence even outside the capital,” Bhandari said, adding, “Our focus will be on opening branches in remote areas so that people there also get access to quality banking service.” He also unveiled the plan of reaching to all 14 zones in the country within the current fiscal year.
As a part of its corporate social responsibility, the bank handed over Rs 100,000 to Nepal Kidney Centre on the day. “We have been continuing our CSR activities in a bid to contribute to the society, especially in the sectors of health and education,” Bhandari added.
The bank also provided Rs 75,000 to Bal Bikas Samaj -- a children home - to finance education of 10 underprivileged students. It also organized blood and eye donation programs to celebrate its 4th anniversary.
Citizens Bank International reported net profit of Rs 170 million during the first nine months of fiscal year 2010/11. “We have become successful in earning high profit despite operating with lower spread rate,” Bhandari said.
The bank collected deposits of Rs 13.86 million and issued loans amounting to Rs 12.60 billion during the period. It has total assets worth Rs 17.73 billion and primary capital of Rs 2.5 billion. The bank plans to increase its paid-up capital to Rs 2 billion soon.
The bank also awarded three branches each in the capital - Koteshwar, Bouddha and New Road - and outside the capital - Biratnagar, Narayanghat and Birgunj - with best performance award.
Gold, silver price at new highs
Gold touched a new high of Rs 41,504 per tola (11.664 grams) in the domestic market on Wednesday. Silver, too, climbed to a new high of Rs 1,240 per tola on the day.
Gold dealers have attributed the rise in the price of precious metals to the fear of political and economic crisis in some African and Middle East countries, weakening US dollar and high crude prices in the international market.
“The main reason behind continuous rise in bullion prices is the political uncertainty in Libya,” said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers´ Association.
Gold was traded at a new high of $1499.32 per troy ounce in the international market on the day. Silver too climbed to a 31-year high of $44.26 per troy ounce.
The price of silver is increasing also because of growing industrial demand throughout the world in the aftermath of massive earthquake and tsunami in Japan. Industrial demand is also high in Japan as industries there are currently in reconstruction phase.
“Our business volume has dropped by more than 50 percent due to upward spiral in the price of gold and silver,” Shakya said.
According to the association, daily demand of gold has dropped to 25-30 kg from 40-45 kg recorded on normal days. Similarly, the demand for silver has dropped to less than 20 kg a day.
“Traders are hopeful of demand growing up during the upcoming wedding season. But they fear high prices may dent their hopes of getting good business,” Shakya said.
Sales of gold and silver normally goes up during the wedding season. Traders expect the daily demand to climb to as high as 40-50 kg a day during wedding season.
Price of gold has increased by 25 percent as compared to prices recorded last year. However, price of silver has more than doubled over the past year.
Gold dealers have attributed the rise in the price of precious metals to the fear of political and economic crisis in some African and Middle East countries, weakening US dollar and high crude prices in the international market.
“The main reason behind continuous rise in bullion prices is the political uncertainty in Libya,” said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers´ Association.
Gold was traded at a new high of $1499.32 per troy ounce in the international market on the day. Silver too climbed to a 31-year high of $44.26 per troy ounce.
The price of silver is increasing also because of growing industrial demand throughout the world in the aftermath of massive earthquake and tsunami in Japan. Industrial demand is also high in Japan as industries there are currently in reconstruction phase.
“Our business volume has dropped by more than 50 percent due to upward spiral in the price of gold and silver,” Shakya said.
According to the association, daily demand of gold has dropped to 25-30 kg from 40-45 kg recorded on normal days. Similarly, the demand for silver has dropped to less than 20 kg a day.
“Traders are hopeful of demand growing up during the upcoming wedding season. But they fear high prices may dent their hopes of getting good business,” Shakya said.
Sales of gold and silver normally goes up during the wedding season. Traders expect the daily demand to climb to as high as 40-50 kg a day during wedding season.
Price of gold has increased by 25 percent as compared to prices recorded last year. However, price of silver has more than doubled over the past year.
Internet penetration rises to nearly 8 percent
: Internet penetration in the country has increased to 7.93 percent from 2.74 percent over the past year. However, the number of dial-up internet users declined by more than 30 percent during the period.
According to Nepal Telecommunication Authority (NTA) - the telecom sector regulator, the number of dial-up internet users dropped to 19,827 in February, 2011, from 28,259 recorded a year earlier. The number was growing until February, 2010.
The number of dial-up internet users started declining with the introduction of broadband internet service. The country had a total of 27,686 dial-up internet users until July, 2010.
Binay Bohra, president of Internet Service Providers´ Association of Nepal (ISPAN), said the dial-up technology is fast being replaced because of high-speed and cheaper tariff that new technology offers. “Who would like to buy slow speed internet package when they can get high-speed internet at reasonable price?” Bohra wondered.
Dial-up internet offers a maximum speed of 56 kbps, while the speed of broadband internet starts from 128 kbps. Wi-Fi, cable, ADSL and wireless broadband are popular internet packages in the country at present.
IT is the dial-up technology that introduced internet to household. But the number of dial-up customers is decreasing because of poor quality and uncompetitive tariff.
“Dial-up internet service is mostly used for back-up purpose these days,” said Bohra, hinting that the number of dial-up users would decrease further in the future.
“It´s natural for the customers to switch to newer technology.”
The number of GPRS users, however, increased by four times during the period. There were more than two million GPRS users in the country until February, 2011. Similarly, subscribers of ADSL and CDMA internet service also doubled during the period.
“The use of internet is no longer limited to sending or receiving mails, people today need high-speed internet for video conferencing, downloads and other purposes,” he added.
According to Nepal Telecommunication Authority (NTA) - the telecom sector regulator, the number of dial-up internet users dropped to 19,827 in February, 2011, from 28,259 recorded a year earlier. The number was growing until February, 2010.
The number of dial-up internet users started declining with the introduction of broadband internet service. The country had a total of 27,686 dial-up internet users until July, 2010.
Binay Bohra, president of Internet Service Providers´ Association of Nepal (ISPAN), said the dial-up technology is fast being replaced because of high-speed and cheaper tariff that new technology offers. “Who would like to buy slow speed internet package when they can get high-speed internet at reasonable price?” Bohra wondered.
Dial-up internet offers a maximum speed of 56 kbps, while the speed of broadband internet starts from 128 kbps. Wi-Fi, cable, ADSL and wireless broadband are popular internet packages in the country at present.
IT is the dial-up technology that introduced internet to household. But the number of dial-up customers is decreasing because of poor quality and uncompetitive tariff.
“Dial-up internet service is mostly used for back-up purpose these days,” said Bohra, hinting that the number of dial-up users would decrease further in the future.
“It´s natural for the customers to switch to newer technology.”
The number of GPRS users, however, increased by four times during the period. There were more than two million GPRS users in the country until February, 2011. Similarly, subscribers of ADSL and CDMA internet service also doubled during the period.
“The use of internet is no longer limited to sending or receiving mails, people today need high-speed internet for video conferencing, downloads and other purposes,” he added.
Tuesday, April 5, 2011
Shrestha, Vaidya promise economic prosperity, job creation _FNCCI Election
FNCCI presidential hopefuls -- Ajad Shrestha and Suraj Vaidya - on Tuesday publicly defended their agendas, promising to solve problems that the private sector has been facing and to work for the promotion of industries and trade.
Speaking at a program organized by the Society of Economic Journalists-Nepal (SEJON), both the candidates elaborated their plan of creating better investment and industrial environment and putting the economic issues on the forefront of national agenda.
Both of them said that they were in favor of taking strong action against fake VAT receipt racketeers and urged the government to carry out investigations in a fair manner. They also promised to work for economic prosperity and creation of more jobs in the country.
Republica presents their agendas and reasons behind filing candidacy for the top post in the apex business organization in the country.
My priority will be on promoting fair business practices: Ajad Shrestha
My reason behind filing candidacy for the top post in FNCCI is to help the private sector regain and enhance its glory. I will work for rejuvenating confidence in the private sector, which is low at present. Establishing and promoting fair business practices will get my top priority.
My candidacy has come at a time when entire industrial sector is passing through hard times. I am aware of the problems that this sector has been facing. I believe I have courage and vision to address and resolve these problems. I will strongly push to secure favorable business climate and establish industrial peace in the country by fostering harmonious relationship with the government and political leaders. I will also work to establish a clear role of the private sector in economic policy making. Apart from this, I will also work toward regaining the credibility of business community in the market by increasing interaction with civil society.
I have worked out seven-point agenda that reflect how I intend to serve the institution and the private sector as a whole. Under this, I will increase dialogue for establishing stronger role of the private sector in constitution writing and peace process. I will work toward creating favorable industrial climate for economic prosperity. For that, I will decentralize the authority of FNCCI leadership and incorporate different business groups that are not under the FNCCI´s umbrella yet.
Basically, my tenure will focus on establishing favorable environment for industrial operation by holding talks with government and stakeholders and imparting message of investment friendly environment at the domestic and international arena.
I also express commitment for harmonious industrial relations and strongly believe that workers are integral part of the industries.
I have plans to empower district chambers: Suraj Vaidya
Nepal´s business community is currently facing severe challenges. High inflation and growing trade deficit has threatened not just the economy, but has also raised question over the entire private sector. These challenges are immense. I decided to file candidacy for the top FNCCI post to see off these challenges.
I have a concrete vision to steer the private sector out of the current gloom. I have floated six-point agenda that incorporates the challenges and sufferings of the private sector. I believe our economy can be made vibrant only if we become successful in bringing more investment and opportunities in the districts. I have plans to empower the district chambers with technical expertise of commodity associations and encourage associate members to flow their resources in the districts.
Issues of private sector and real economic agendas have long remained out of priority. Once elected, I will develop economic development agenda of the private sector within six months and strongly push to establish it as agenda of national priority. For this, I will intensify interactions with the government and policy makers. Once we manage to improve investment climate, it will automatically spur industrial growth and job opportunities.
I will make FNCCI more inclusive and also decentralize its authority. This will help use promptly address the problems that business community are facing at different levels. FNCCI has long remained an individual-driven institution; I will make it an organization driven by its members.
Energy crisis has become a major constraint to industrial growth. I will work together with independent power developers and encourage more capital flow in the sector to resolve the problem. I strongly believe that trade unions are partners of industries. Unfortunately, both of us (industries and workers) are suffering from low productivity. I plan to link salary and wages of workers with productivity. Workers that work more certainly deserve high pay.
Speaking at a program organized by the Society of Economic Journalists-Nepal (SEJON), both the candidates elaborated their plan of creating better investment and industrial environment and putting the economic issues on the forefront of national agenda.
Both of them said that they were in favor of taking strong action against fake VAT receipt racketeers and urged the government to carry out investigations in a fair manner. They also promised to work for economic prosperity and creation of more jobs in the country.
Republica presents their agendas and reasons behind filing candidacy for the top post in the apex business organization in the country.
My priority will be on promoting fair business practices: Ajad Shrestha
My reason behind filing candidacy for the top post in FNCCI is to help the private sector regain and enhance its glory. I will work for rejuvenating confidence in the private sector, which is low at present. Establishing and promoting fair business practices will get my top priority.
My candidacy has come at a time when entire industrial sector is passing through hard times. I am aware of the problems that this sector has been facing. I believe I have courage and vision to address and resolve these problems. I will strongly push to secure favorable business climate and establish industrial peace in the country by fostering harmonious relationship with the government and political leaders. I will also work to establish a clear role of the private sector in economic policy making. Apart from this, I will also work toward regaining the credibility of business community in the market by increasing interaction with civil society.
I have worked out seven-point agenda that reflect how I intend to serve the institution and the private sector as a whole. Under this, I will increase dialogue for establishing stronger role of the private sector in constitution writing and peace process. I will work toward creating favorable industrial climate for economic prosperity. For that, I will decentralize the authority of FNCCI leadership and incorporate different business groups that are not under the FNCCI´s umbrella yet.
Basically, my tenure will focus on establishing favorable environment for industrial operation by holding talks with government and stakeholders and imparting message of investment friendly environment at the domestic and international arena.
I also express commitment for harmonious industrial relations and strongly believe that workers are integral part of the industries.
I have plans to empower district chambers: Suraj Vaidya
Nepal´s business community is currently facing severe challenges. High inflation and growing trade deficit has threatened not just the economy, but has also raised question over the entire private sector. These challenges are immense. I decided to file candidacy for the top FNCCI post to see off these challenges.
I have a concrete vision to steer the private sector out of the current gloom. I have floated six-point agenda that incorporates the challenges and sufferings of the private sector. I believe our economy can be made vibrant only if we become successful in bringing more investment and opportunities in the districts. I have plans to empower the district chambers with technical expertise of commodity associations and encourage associate members to flow their resources in the districts.
Issues of private sector and real economic agendas have long remained out of priority. Once elected, I will develop economic development agenda of the private sector within six months and strongly push to establish it as agenda of national priority. For this, I will intensify interactions with the government and policy makers. Once we manage to improve investment climate, it will automatically spur industrial growth and job opportunities.
I will make FNCCI more inclusive and also decentralize its authority. This will help use promptly address the problems that business community are facing at different levels. FNCCI has long remained an individual-driven institution; I will make it an organization driven by its members.
Energy crisis has become a major constraint to industrial growth. I will work together with independent power developers and encourage more capital flow in the sector to resolve the problem. I strongly believe that trade unions are partners of industries. Unfortunately, both of us (industries and workers) are suffering from low productivity. I plan to link salary and wages of workers with productivity. Workers that work more certainly deserve high pay.
Fishtail Lodge Workers return to work
Agitating workers of Fishtail Lodge returned to work on Tuesday to create environment for talks to resolve their differences with the management.
The workers had announced shutdown of the lodge on Monday.
This had prompted the management to shift its 120 clients to other hotels in Pokhara.
The workers had announced shutdown due to differences with the management over the issue of sacking of one of the security guards, Nanda Prasad Sharma, a week ago. While the management say Sharma was fired because he refused to correct his misconducts despite repeated warnings, workers close to UCPN (Maoist) claim that the decision to sack Sharma just three days before the completion of his 240 days probation period was a foul play by the management.
The workers have demanded the management to revoke the decision and appoint him on permanent basis.
Workers said they returned to work as the closure of the lodge and shifting of clients made it difficult for them to continue talks with the management. “We are still in protest, but we will not hamper services,” said Jit Bahadur Thebe, unit president of agitating All Nepal Hotel and Restaurant Workers Union (ANHRWU).
He told Republica that the union decided to return to work as the sudden closure of the lodge disseminated negative message among visitors. Thebe further said that the union has not budged from its sole demand of reinstating Sharma and appointing him on permanent basis.
Officials at the lodge said the management has taken the workers´ decision to return to work positively and that they were hopeful of resolving the differences soon.
The lodge management has also informed its reservation agents that it would not accept any booking until the differences with workers are resolved.
“We have decided not to take any reservation in a bid to prevent tourists from undue trouble,” Pradeep Shamsher Rana, general manager of Fishtail Lodge, told Republica. However, the hotel has accepted visitors willing to stay in the lodge even after knowing about the persisting differences with the workers.
Foreign tourists on premises of the lodge.
Senior staff of the lodge said Kathmandu-based Hotel De l´Annapurna , which oversees the management of Fishtail Lodge, has instructed the lodge management to address the problem at the local level.
Fishtail Lodge is the property of Jayanti Memorial Trust and Hotel De l´Annapurna has been overseeing its management since 2006. The lodge with 126 workers had recorded total turnover of Rs 80 million in the last fiscal year. It was the largest taxpayer among Pokhara hotels in the last fiscal year.
The workers had announced shutdown of the lodge on Monday.
This had prompted the management to shift its 120 clients to other hotels in Pokhara.
The workers had announced shutdown due to differences with the management over the issue of sacking of one of the security guards, Nanda Prasad Sharma, a week ago. While the management say Sharma was fired because he refused to correct his misconducts despite repeated warnings, workers close to UCPN (Maoist) claim that the decision to sack Sharma just three days before the completion of his 240 days probation period was a foul play by the management.
The workers have demanded the management to revoke the decision and appoint him on permanent basis.
Workers said they returned to work as the closure of the lodge and shifting of clients made it difficult for them to continue talks with the management. “We are still in protest, but we will not hamper services,” said Jit Bahadur Thebe, unit president of agitating All Nepal Hotel and Restaurant Workers Union (ANHRWU).
He told Republica that the union decided to return to work as the sudden closure of the lodge disseminated negative message among visitors. Thebe further said that the union has not budged from its sole demand of reinstating Sharma and appointing him on permanent basis.
Officials at the lodge said the management has taken the workers´ decision to return to work positively and that they were hopeful of resolving the differences soon.
The lodge management has also informed its reservation agents that it would not accept any booking until the differences with workers are resolved.
“We have decided not to take any reservation in a bid to prevent tourists from undue trouble,” Pradeep Shamsher Rana, general manager of Fishtail Lodge, told Republica. However, the hotel has accepted visitors willing to stay in the lodge even after knowing about the persisting differences with the workers.
Foreign tourists on premises of the lodge.
Senior staff of the lodge said Kathmandu-based Hotel De l´Annapurna , which oversees the management of Fishtail Lodge, has instructed the lodge management to address the problem at the local level.
Fishtail Lodge is the property of Jayanti Memorial Trust and Hotel De l´Annapurna has been overseeing its management since 2006. The lodge with 126 workers had recorded total turnover of Rs 80 million in the last fiscal year. It was the largest taxpayer among Pokhara hotels in the last fiscal year.
Balance of Payment deficit surges against central bank´s projection
The Balance of Payment (BoP) deficit doesnot seem to come under control, though export-import gap has been reduced marginally.
The central bank has projected BoP to be at Rs 9 billion surplus in the Monetary Policy for the current fiscal year, however, during the seventh month, it recorded a deficit of Rs 12.57 billion against the first six months’ deficit of Rs 4.43 billion.
Similarly, the country’s import is still six times the export as Nepal exported Rs 37.91 billion worth merchandise and imported Rs Rs 218.59 billion.
“The current account also registered a deficit of Rs 6.78 billion compared to a deficit of Rs 31.67 billion in the same period last year, said the central bank’s macroeconomic situation report of the seventh month (January15-February 15) published here today.
The decline in trade deficit along with improvement in service account and transfer income attributed to such a remarkable decline in the current account deficit compared to that of the previous year. “However, the overall BoP could not improve as expected on account of increased imbalances in financial account,” the report added.
Merchandise exports increased by 6.6 per cent to Rs 37.91 billion against a decline of 10.4 per cent to Rs 35.57 billion in the same period last year. “Exports to India increased by 10.8 per cent in contrast to a drop of five per cent in the same period last year, whereas exports to other countries decreased by 0.8 per cent against a plunge of 18.5 per cent in the same period last year,” according to the central bank.
Merchandise imports also declined by 0.1 per cent to Rs 218.59 billion against a growth of 40.1 per cent to Rs 218.79 billion in the same period last year. Imports from India grew by 24.7 per cent compared to a growth of 35.5 per cent in the same period last year, whereas imports from other countries declined by 29.6 per cent in contrast to a growth of 46 per cent in the same period last year creating a total trade deficit of Rs 180.68 billion.
The Freight on Board (FOB)-based merchandise trade deficit dropped marginally by 3.1 per cent to Rs 174.58 billion against the growth by 62 per cent in the same period last year, whereas service account deficit declined significantly by 30.4 per cent to Rs 5.99 billion. Service account deficit had increased by 9.4 per cent to Rs 8.60 billion in the same period last year.
“The net transfer account registered a growth of 13 per cent to Rs 170.6 billion compared to the same period of last year,” it said, adding that under the transfers sub-group, grants increased by 26.2 per cent to Rs 16.06 billion while pension receipts rose marginally by 0.4 per cent to Rs 15.63 billion, workers’ remittances increased by 11.7 per cent to Rs 138.9 billion compared to its growth of 13.6 per cent in the same period last year. “But on a monthly basis, the remittance inflows decreased by 6.5 per cent in January-February compared to the value of the previous month of this fiscal year.”
However, under the financial account foreign direct investment (FDI) of Rs 4.84 billion was recorded against Rs 1.45 billion in the same period a year ago.
Inflation in double digit
KATHMANDU: The y-o-y inflation as measured by the consumer price index (2005-06=100) increased to 10.2 per cent in mid-February 2011 from 10.9 per cent in the same period of last year. The index of food and beverage group increased by 16.6 per cent and the index of non-food and services group increased by five per cent against an increase of 17.5 per cent and 5.6 per cent respectively in the asme period last year.
The central bank has projected BoP to be at Rs 9 billion surplus in the Monetary Policy for the current fiscal year, however, during the seventh month, it recorded a deficit of Rs 12.57 billion against the first six months’ deficit of Rs 4.43 billion.
Similarly, the country’s import is still six times the export as Nepal exported Rs 37.91 billion worth merchandise and imported Rs Rs 218.59 billion.
“The current account also registered a deficit of Rs 6.78 billion compared to a deficit of Rs 31.67 billion in the same period last year, said the central bank’s macroeconomic situation report of the seventh month (January15-February 15) published here today.
The decline in trade deficit along with improvement in service account and transfer income attributed to such a remarkable decline in the current account deficit compared to that of the previous year. “However, the overall BoP could not improve as expected on account of increased imbalances in financial account,” the report added.
Merchandise exports increased by 6.6 per cent to Rs 37.91 billion against a decline of 10.4 per cent to Rs 35.57 billion in the same period last year. “Exports to India increased by 10.8 per cent in contrast to a drop of five per cent in the same period last year, whereas exports to other countries decreased by 0.8 per cent against a plunge of 18.5 per cent in the same period last year,” according to the central bank.
Merchandise imports also declined by 0.1 per cent to Rs 218.59 billion against a growth of 40.1 per cent to Rs 218.79 billion in the same period last year. Imports from India grew by 24.7 per cent compared to a growth of 35.5 per cent in the same period last year, whereas imports from other countries declined by 29.6 per cent in contrast to a growth of 46 per cent in the same period last year creating a total trade deficit of Rs 180.68 billion.
The Freight on Board (FOB)-based merchandise trade deficit dropped marginally by 3.1 per cent to Rs 174.58 billion against the growth by 62 per cent in the same period last year, whereas service account deficit declined significantly by 30.4 per cent to Rs 5.99 billion. Service account deficit had increased by 9.4 per cent to Rs 8.60 billion in the same period last year.
“The net transfer account registered a growth of 13 per cent to Rs 170.6 billion compared to the same period of last year,” it said, adding that under the transfers sub-group, grants increased by 26.2 per cent to Rs 16.06 billion while pension receipts rose marginally by 0.4 per cent to Rs 15.63 billion, workers’ remittances increased by 11.7 per cent to Rs 138.9 billion compared to its growth of 13.6 per cent in the same period last year. “But on a monthly basis, the remittance inflows decreased by 6.5 per cent in January-February compared to the value of the previous month of this fiscal year.”
However, under the financial account foreign direct investment (FDI) of Rs 4.84 billion was recorded against Rs 1.45 billion in the same period a year ago.
Inflation in double digit
KATHMANDU: The y-o-y inflation as measured by the consumer price index (2005-06=100) increased to 10.2 per cent in mid-February 2011 from 10.9 per cent in the same period of last year. The index of food and beverage group increased by 16.6 per cent and the index of non-food and services group increased by five per cent against an increase of 17.5 per cent and 5.6 per cent respectively in the asme period last year.
Ncell upgrades to next generation technology
Ncell has successfully created one more milestone by upgrading to a world class next generation technology, according to the company.
“The technology is being used only by some developed countries of the world and Ncell is the first service provider to use it among TeliaSonera Group within 20 country operations,” CEO of Ncell Pasi Koistinen said, adding that more than 250 professionals took nine months to implement and cut over to new system.
“However, the evolution caused a minor side effect as huge data transfer created some hitches, according to the Ncell. “After cut over to new system, some customers have faced recharge problems and Ncell also faced a longer than normal waiting time for the customer care,” according to the company.
“The technology is being used only by some developed countries of the world and Ncell is the first service provider to use it among TeliaSonera Group within 20 country operations,” CEO of Ncell Pasi Koistinen said, adding that more than 250 professionals took nine months to implement and cut over to new system.
“However, the evolution caused a minor side effect as huge data transfer created some hitches, according to the Ncell. “After cut over to new system, some customers have faced recharge problems and Ncell also faced a longer than normal waiting time for the customer care,” according to the company.
Saturday, April 2, 2011
NRB mulls steps to revive stock market
Nepal Rastra Bank (NRB) Governor Dr Yubaraj Khatiwada said on Thursday that the central bank is mulling to take steps for the revival of capital market which has been witnessing a protracted slowdown.
“Capital market has come to a proper shape after continued decline. NRB is preparing to come up with a plan to revitalize the share market,” said Khatiwada while inaugurating Central Depository System (CDS) and Clearing Ltd, which provides online-based trading in stock market.
On the occasion, Indian ambassador Rakesh Sood handed over the CDS application software and Clearing system to Tanka Prasad Paneru, chairman of Clearing Ltd.
India has provided a total assistance worth Rs 147.2 million to the company -- a subsidiary of Nepal Stock Exchange (Nepse) -- in the form of consultancy service and software application to modernize trading and transfer of securities in Nepal´s sole capital market.
On the occasion, Governor Khatiwada said CDS would prove to be instrumental in expanding and modernizing Nepal´s capital market.
On the occasion, ambassador Sood expressed hope that risks associated with paperwork and transaction costs of securities will be considerably reduced once CDS comes into operation.
Surbir Poudel, chairman of Securities Board of Nepal (Sebon) and Nepse general manager Shankar Man Singh also expressed confidence that ill-practices and procedural delay would end with the introduction of CDS in the capital market.
“Capital market has come to a proper shape after continued decline. NRB is preparing to come up with a plan to revitalize the share market,” said Khatiwada while inaugurating Central Depository System (CDS) and Clearing Ltd, which provides online-based trading in stock market.
On the occasion, Indian ambassador Rakesh Sood handed over the CDS application software and Clearing system to Tanka Prasad Paneru, chairman of Clearing Ltd.
India has provided a total assistance worth Rs 147.2 million to the company -- a subsidiary of Nepal Stock Exchange (Nepse) -- in the form of consultancy service and software application to modernize trading and transfer of securities in Nepal´s sole capital market.
On the occasion, Governor Khatiwada said CDS would prove to be instrumental in expanding and modernizing Nepal´s capital market.
On the occasion, ambassador Sood expressed hope that risks associated with paperwork and transaction costs of securities will be considerably reduced once CDS comes into operation.
Surbir Poudel, chairman of Securities Board of Nepal (Sebon) and Nepse general manager Shankar Man Singh also expressed confidence that ill-practices and procedural delay would end with the introduction of CDS in the capital market.
Dairy Development Corporation (DDC) hikes milk price by Rs 4 per liter
State-owned Dairy Development Corporation (DDC) has increased the price of pasteurized milk by Rs 4 to Rs 44 per liter (Rs 22 per 500 gram packet) effective from Thursday. The board meeting of DDC held on Tuesday took the decision.
With the rise in price, farmers and DDC will get Rs 3 per liter and Re 1 per liter respectively.
National Dairy Development Board (NDDB) -- the dairy sector regulator -- had recommended the Ministry of Agriculture and Cooperatives (MoAC) to increase the price, citing rising cost of milk production.
“With the consent of MoAC, we have decided to raise milk price by Rs 4 per liter,” Siyaram Singh, deputy general manager of DDC, told Republica on Wednesday. Singh said the price of 500 ml non-skimmed (green packet) and skimmed (blue packet) milk has reached Rs 25 and Rs 22 respectively.
Singh said farmers had long been pushing for price hike, citing deepening deficit of milk in the domestic market. To cope with the supply deficit, DDC has been importing around 25,000 to 30,000 liters of fresh milk from Patna Dairy Project -- an undertaking of India´s Bihar government, every day.
“We made recommendation to raise milk price by Rs 4 per liter, taking into consideration rising prices of milking cattle, feeds, nutrients, wages of workers, fuel and interest on bank loan,” D N Pathak, executive director of NDDB said. He further added that the country was facing milk deficit of 400,000 liters.
Daily demand for milk hovers around 1.2 million liters. DDC had last hiked milk price by Rs 2 per liter on May 15 last year.
Ram Kumar Khadka, president of Private Dairies´ Association, said private dairies have no option but to hike milk price as the DDC, which commands more than 40 percent share in domestic market, has already increased price of its products.
“We will take formal decision on price hike within a couple of days. We will raise price in line with the DDC´s pricing,” Khadka added. He said farmers would get at least Rs 28 to Rs 40 per liter depending on fat and solid not fat (SNF) contain in the milk.
Around 300 small and big private dairies are operating across the country.
With the rise in price, farmers and DDC will get Rs 3 per liter and Re 1 per liter respectively.
National Dairy Development Board (NDDB) -- the dairy sector regulator -- had recommended the Ministry of Agriculture and Cooperatives (MoAC) to increase the price, citing rising cost of milk production.
“With the consent of MoAC, we have decided to raise milk price by Rs 4 per liter,” Siyaram Singh, deputy general manager of DDC, told Republica on Wednesday. Singh said the price of 500 ml non-skimmed (green packet) and skimmed (blue packet) milk has reached Rs 25 and Rs 22 respectively.
Singh said farmers had long been pushing for price hike, citing deepening deficit of milk in the domestic market. To cope with the supply deficit, DDC has been importing around 25,000 to 30,000 liters of fresh milk from Patna Dairy Project -- an undertaking of India´s Bihar government, every day.
“We made recommendation to raise milk price by Rs 4 per liter, taking into consideration rising prices of milking cattle, feeds, nutrients, wages of workers, fuel and interest on bank loan,” D N Pathak, executive director of NDDB said. He further added that the country was facing milk deficit of 400,000 liters.
Daily demand for milk hovers around 1.2 million liters. DDC had last hiked milk price by Rs 2 per liter on May 15 last year.
Ram Kumar Khadka, president of Private Dairies´ Association, said private dairies have no option but to hike milk price as the DDC, which commands more than 40 percent share in domestic market, has already increased price of its products.
“We will take formal decision on price hike within a couple of days. We will raise price in line with the DDC´s pricing,” Khadka added. He said farmers would get at least Rs 28 to Rs 40 per liter depending on fat and solid not fat (SNF) contain in the milk.
Around 300 small and big private dairies are operating across the country.
Nepal Oil Cooperation to seek loans of Rs 1.77b soon
Even as the government is yet to release already committed loans of Rs 1.5 billion to Nepal Oil Corporation to finance imports, the state-owned petroleum monopolist has declared it will need another Rs 1.77 billion in loans to keep supply going in May.
The situation emerged mainly after fresh pricing issued by the Indian Oil Corporation on Friday further soared up the corporation´s loss, and officials doubt over government taking bold step to adjust prices.
“We will need another tranche of loans again soon if the government did not act immediately to plug the loss,” said an official at NOC.
Referring to the new import rates, NOC Spokesperson Mukunda Dhungel said the corporation´s loss for this is calculated to jump to Rs 1.77 billion. “Loss on petrol has narrowed down to Rs 3.75 per liter from Rs 4.30,” said Dhungel, adding, “However, loss on diesel has jumped to Rs 20.96 from over Rs 19 per liter.”
NOC´s loss on kerosene has increased to Rs 11.25 from Rs 4.50 per liter, while import-sales gap on liquefied petroleum gas (LPG) has widened to Rs 288.79 per cylinder (of 14.2 kg) from Rs 254.
Since diesel makes up more than two-thirds of the total fossil fuel that the country consumes, Dhungel said at the present rate, NOC is poised to suffer a loss of over Rs 1.42 billion on diesel trade alone. Loss from LPG, consumed by urban upper and middle class, hotels, restaurants and manufacturing industries, too is calculated to cross Rs 317.6 billion. Kerosene will generate additional loss of around Rs 50 million in April.
Aviation fuel is the only product in which NOC is making profit. However, even the profit in this product has shrunk to Rs 9.20 per liter from Rs 15.73 per liter under the new rates, according to Dhungel.
As crude continue to remain volatile to unrest in middle-east and growing demand in Japan and other countries, Nepal has been passed on the crude rate of around $102 per barrel. However, domestic fuel rates are equivalent to crude price of $77.
“This is a huge gap. Unless the government dares to plug it, we will have no other option but to continue seeking loans from the government,” said another NOC official.
NOC has already acquired Rs 2.44 billion in loans from the government over the first eight months of the current fiscal year. The government is in the process of releasing it another Rs 1.50 billion to finance import. Apart from that, NOC has also borrowed additional Rs 500 million from different financial institutions to maintain supplies.
“Our outstanding loans have now accumulated to about Rs 15 billion,” the official said, elaborating that the figure will continue to soar unless the government ends the faulty policy immediately.
Although high-level commission and experts have repeatedly pin pointed that Nepal cannot afford to provide subsidy on petroleum products, the government has continued to remain apathetic to automatic pricing mechanism under which prices are adjusted in line with the international trend.
“The faulty policy has already drained away huge state resources. Unfortunately, it will continue further because the government will simply not be able to raise prices to the extent it needs to plug the loss,” said the official.
Loss per liter
Petrol Rs 3.75
Diesel Rs 20.96
Kerosene Rs 11.25
LPG Rs 288.79
Aviation Fuel Profit Rs 9.20 per liter
The situation emerged mainly after fresh pricing issued by the Indian Oil Corporation on Friday further soared up the corporation´s loss, and officials doubt over government taking bold step to adjust prices.
“We will need another tranche of loans again soon if the government did not act immediately to plug the loss,” said an official at NOC.
Referring to the new import rates, NOC Spokesperson Mukunda Dhungel said the corporation´s loss for this is calculated to jump to Rs 1.77 billion. “Loss on petrol has narrowed down to Rs 3.75 per liter from Rs 4.30,” said Dhungel, adding, “However, loss on diesel has jumped to Rs 20.96 from over Rs 19 per liter.”
NOC´s loss on kerosene has increased to Rs 11.25 from Rs 4.50 per liter, while import-sales gap on liquefied petroleum gas (LPG) has widened to Rs 288.79 per cylinder (of 14.2 kg) from Rs 254.
Since diesel makes up more than two-thirds of the total fossil fuel that the country consumes, Dhungel said at the present rate, NOC is poised to suffer a loss of over Rs 1.42 billion on diesel trade alone. Loss from LPG, consumed by urban upper and middle class, hotels, restaurants and manufacturing industries, too is calculated to cross Rs 317.6 billion. Kerosene will generate additional loss of around Rs 50 million in April.
Aviation fuel is the only product in which NOC is making profit. However, even the profit in this product has shrunk to Rs 9.20 per liter from Rs 15.73 per liter under the new rates, according to Dhungel.
As crude continue to remain volatile to unrest in middle-east and growing demand in Japan and other countries, Nepal has been passed on the crude rate of around $102 per barrel. However, domestic fuel rates are equivalent to crude price of $77.
“This is a huge gap. Unless the government dares to plug it, we will have no other option but to continue seeking loans from the government,” said another NOC official.
NOC has already acquired Rs 2.44 billion in loans from the government over the first eight months of the current fiscal year. The government is in the process of releasing it another Rs 1.50 billion to finance import. Apart from that, NOC has also borrowed additional Rs 500 million from different financial institutions to maintain supplies.
“Our outstanding loans have now accumulated to about Rs 15 billion,” the official said, elaborating that the figure will continue to soar unless the government ends the faulty policy immediately.
Although high-level commission and experts have repeatedly pin pointed that Nepal cannot afford to provide subsidy on petroleum products, the government has continued to remain apathetic to automatic pricing mechanism under which prices are adjusted in line with the international trend.
“The faulty policy has already drained away huge state resources. Unfortunately, it will continue further because the government will simply not be able to raise prices to the extent it needs to plug the loss,” said the official.
Loss per liter
Petrol Rs 3.75
Diesel Rs 20.96
Kerosene Rs 11.25
LPG Rs 288.79
Aviation Fuel Profit Rs 9.20 per liter
Voice over Broadband Service within two years: NTA
Nepal Telecommunication Authority (NTA) is shortly calling a global tender for Voice over Broadband services (VoBS), a service which once into operation will allow consumers to receive overseas call via internet and also make internet service cheaper. Under the current technology, receiving call from abroad via internet in telephone or mobile phone is illegal.
Purushottam Khanal, director at NTA - the telecom service regulator - told Republica that the bidding document has been forwarded to the Ministry of Information and Communications (MoIC).
“After the approval from the ministry, the document will be sent to the Asian Development Bank (ADB) for final approval,” he added.
ADB is providing $6 million to the operator that wins the bid. To participate in the global tender, interest firms should have net worth of at least $4 million and should be capable of providing the service in at least 25 districts, including 1,300 VDCs.
Khanal said the service is likely to be available within two years. “We are targeting rural sector to overcome the existing digital divide,” he said, adding that the first operator will also get subsidies.
Apart from the winning bidder, NTA can also license other firms to operate VoBS. “Firms meeting our pre-requisites can apply for the license. But they won´t get any subsidy,” said Khanal.
NTA is planning to introduce the service in urban areas after covering rural areas. The service will allow customers to use high speed internet through telephone line. NTA officials are hopeful that the service would help minimize illegal use of VoIP.
Purushottam Khanal, director at NTA - the telecom service regulator - told Republica that the bidding document has been forwarded to the Ministry of Information and Communications (MoIC).
“After the approval from the ministry, the document will be sent to the Asian Development Bank (ADB) for final approval,” he added.
ADB is providing $6 million to the operator that wins the bid. To participate in the global tender, interest firms should have net worth of at least $4 million and should be capable of providing the service in at least 25 districts, including 1,300 VDCs.
Khanal said the service is likely to be available within two years. “We are targeting rural sector to overcome the existing digital divide,” he said, adding that the first operator will also get subsidies.
Apart from the winning bidder, NTA can also license other firms to operate VoBS. “Firms meeting our pre-requisites can apply for the license. But they won´t get any subsidy,” said Khanal.
NTA is planning to introduce the service in urban areas after covering rural areas. The service will allow customers to use high speed internet through telephone line. NTA officials are hopeful that the service would help minimize illegal use of VoIP.
Laxmi completes 9 yrs
Laxmi Bank has completed nine years of operation on Friday. The bank established in April 2002 has emerged as a key player in all business lines: Retail, corporate, treasury and small business financial services, said the bank. The bank has a balance sheet size of Rs 20.8 billion and CD ratio at 85 per cent, Capital Adequacy ratio at 13.05 per cent. With its 26 branches around the country, Laxmi Bank serves a wide range of customers with latest products like Mobile Money.
THT Live on Smart
Interactive SMS service from THT Live (2722) is now available on Smart Cell. Smart Cell customers can type keywords and send SMS to 2722 to get news, SLC and plus-two exam results, forex rate, horoscope, match score, ring tones, weather forecast and play different games, said the company. “Customers can also participate in Ooltobolee as well.”
NTY 2011 stickers for tourist buses soon
Nepal Tourism Year (NTY) 2011 committee is going to issue its sticker from this month to confirm security to tourists arriving from border areas.
“We are going to issue NTY 2011 sticker for tourist vehicles entering Nepal from the border areas,” said Dhruba Narayan Shrestha, member of NTY 2011 working committee.
According to Shrestha, the sticker was supposed to be issued from January but the delay in response from ministries of finance and home has delayed the process.
“We are hopeful that within this month, we will issue stickers for tourist vehicles at border areas,” said Shrestha.
The NTY 2011 national campaign has targeted about 300,000 Indian tourists to visit Nepal during the year. “Till March, total tourists arriving from border areas have already crossed 30,000,” he said.
“We are going to issue NTY 2011 sticker for tourist vehicles entering Nepal from the border areas,” said Dhruba Narayan Shrestha, member of NTY 2011 working committee.
According to Shrestha, the sticker was supposed to be issued from January but the delay in response from ministries of finance and home has delayed the process.
“We are hopeful that within this month, we will issue stickers for tourist vehicles at border areas,” said Shrestha.
The NTY 2011 national campaign has targeted about 300,000 Indian tourists to visit Nepal during the year. “Till March, total tourists arriving from border areas have already crossed 30,000,” he said.
Silver rises to record high of Rs 1‚042 a tola
Silver broke all time record once again in the local market this week as a tola of silver was priced at Rs 1,042 per tola (11.664 gram).
In the domestic market, the price of silver crossed the threshold of Rs 1,000 for a tola three weeks ago. Ever since, it has been climbing steadily. The week saw silver rise from Rs 1,039 per tola last Friday to Rs 1,042 on Sunday, a new record-high. It fell to Rs 1,035 per tola on Wednesday but by the end of the week, silver once again stood at Rs 1,042 for a single tola.
Silver is used for industrial purposes, photography, jewellery and silverware. Together, these three categories represent more than 95 per cent of annual silver consumption.
Silver is likely to keep outperforming gold this season, according to the commodity market analysts.
However, the domestic market did not see any major price fluctuation in gold. At the end of the week, the price for a tola (11.664 gram) of gold today retreated to Rs 40,000 from Sunday’s opening of Rs 40,153.
It is being believed that gold could climb $1,500 an ounce in the second quarter of 2011. Similarly, at the beginning of the week the exchange rate for a US dollar in terms of Nepali rupee stood at Rs 71.19 on Sunday and closed at Rs 70.99 on Friday.
In the domestic market, the price of silver crossed the threshold of Rs 1,000 for a tola three weeks ago. Ever since, it has been climbing steadily. The week saw silver rise from Rs 1,039 per tola last Friday to Rs 1,042 on Sunday, a new record-high. It fell to Rs 1,035 per tola on Wednesday but by the end of the week, silver once again stood at Rs 1,042 for a single tola.
Silver is used for industrial purposes, photography, jewellery and silverware. Together, these three categories represent more than 95 per cent of annual silver consumption.
Silver is likely to keep outperforming gold this season, according to the commodity market analysts.
However, the domestic market did not see any major price fluctuation in gold. At the end of the week, the price for a tola (11.664 gram) of gold today retreated to Rs 40,000 from Sunday’s opening of Rs 40,153.
It is being believed that gold could climb $1,500 an ounce in the second quarter of 2011. Similarly, at the beginning of the week the exchange rate for a US dollar in terms of Nepali rupee stood at Rs 71.19 on Sunday and closed at Rs 70.99 on Friday.
Tourist arrivals keep up with growth trend
Propelled by the robust growth of the South Asian arrivals, the tourist arrivals in the third month of this year has registered sustained positive growth in the international visitor arrivals.
According to figures released by Immigration Office at the Tribhuvan International Airport (TIA), visitor arrivals in March compared to the same month last year have increased by 4.6 per cent to 46,491. India, which constitutes the major market for Nepal, has recorded a positive growth of 28 per cent along with Sri Lanka and Pakistan with 38.3 per cent and 6.8 per cent, respectively.
However, the arrivals from Bangladesh have declined by 2.5 per cent. In aggregate, the South Asian segment has registered a positive growth of 22.5 per cent though all the regions have shown positive growth.
Arrivals from Asia, except South Asia, have also recorded a positive growth of 15.1 per cent in aggregate. The arrivals from China have increased by 15.2 per cent. Japan after being struck by natural disaster has also registered an increase in arrivals by 9.6 per cent.
Similarly, arrivals from South Korea, Thailand, Malaysia and Singapore have also increased by 12.1 per cent, 51.9 per cent, 16.2 per cent and 10.8 per cent respectively. However, an overall negative growth of 12.6 per cent has been observed from the European markets.
“Arrivals from markets such as France, Italy, Russia, Sweden and Denmark are up by 28.8 per cent, 8 per cent, 36.2 per cent, nine per cent and 13.5 per cent,” the data revealed, adding that arrivals from the major markets such as UK, Germany, Netherlands, Spain, and Switzerland have registered negative growth by 27 per cent, 16.1 per cent, 20.3 per cent, 43 per cent, and 7.7 per cent, respectively.
According to figures released by Immigration Office at the Tribhuvan International Airport (TIA), visitor arrivals in March compared to the same month last year have increased by 4.6 per cent to 46,491. India, which constitutes the major market for Nepal, has recorded a positive growth of 28 per cent along with Sri Lanka and Pakistan with 38.3 per cent and 6.8 per cent, respectively.
However, the arrivals from Bangladesh have declined by 2.5 per cent. In aggregate, the South Asian segment has registered a positive growth of 22.5 per cent though all the regions have shown positive growth.
Arrivals from Asia, except South Asia, have also recorded a positive growth of 15.1 per cent in aggregate. The arrivals from China have increased by 15.2 per cent. Japan after being struck by natural disaster has also registered an increase in arrivals by 9.6 per cent.
Similarly, arrivals from South Korea, Thailand, Malaysia and Singapore have also increased by 12.1 per cent, 51.9 per cent, 16.2 per cent and 10.8 per cent respectively. However, an overall negative growth of 12.6 per cent has been observed from the European markets.
“Arrivals from markets such as France, Italy, Russia, Sweden and Denmark are up by 28.8 per cent, 8 per cent, 36.2 per cent, nine per cent and 13.5 per cent,” the data revealed, adding that arrivals from the major markets such as UK, Germany, Netherlands, Spain, and Switzerland have registered negative growth by 27 per cent, 16.1 per cent, 20.3 per cent, 43 per cent, and 7.7 per cent, respectively.
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