Foreign exchange earnings from tourism have fallen despite a rise in arrivals, length of stay, spending and hotel occupancy.
According to Nepal Rastra Bank (NRB), revenue from the travel trade dipped 13.2 percent in the first 11 months of fiscal 2011-11. Takings amounted to Rs 22.91 billion in the review period, down from Rs 26.40 billion in the same period in the previous year. In the whole of fiscal 2009-10, the tourism sector earned Rs 28.13 billion in foreign exchange.
"The tourist length of stay has increased while hotel occupancy was positive with improved tourist arrivals since last year, but the decrease in tourism income has surprised us," said Basanta Raj Mishra, past president of the Nepal Association of Tour Operators.
According to the Economic Survey, the average length of stay of tourists in Nepal increased to a six-year high of 12.67 days in 2010-11. Similarly, the survey shows that daily spending has climbed to US$ 46.73 this year from US$ 36.88 last year.
Entrepreneurs said policy makers should do some soul-searching on why income from tourism has been declining. The country's tourism income has not been evaluated on a scientific basis. Air tourist arrivals to Nepal has increased significantly since 2010, and a 25 percent growth was recorded in the first six months of 2011. Travel traders have blamed the fixation of Nepal Tourism Year (NTY) on attaining arrival targets and slackness in efforts to expand quality tourism for the fall in revenue.
"With the announcement of NTY, there is growing competition among travel agencies to increase the number of tourists rather than quality tourism," said Ram Kazi Koney, managing director of Gandaki Tours and Travels and past president of the Nepal Association of Travel and Tour Agents (NATTA). According to him, the country has become a budget destination affecting foreign exchange earnings.
NTY has been good to the hotel industry, bringing greater arrivals, higher occupancy and profits. Hoteliers said that average room occupancy has climbed to 60-70 percent from 40-50 percent in earlier years.
Hotel tariffs have been increasing 15-20 percent annually, and they have been maintaining their room rates even during the off-season.
With revenue falling despite improved tourist arrivals, NRB said that the issue was a serious concern. "NRB is studying the issue to find out why earnings from tourism have been declining," said NRB spokesperson Bhaskar Mani Gyanwali.
Sunday, July 31, 2011
Nepal Telecom, Public Account Comitte at odds over bridging project
Nepal Telecom (NT) has stated that addition of over 1.5 million GSM and CDMA lines through a bridging project (a stop-gap arrangement) is a must as the existing network capacity could only meet demand for the next three months.
The bridging project is currently under the parliament’s Public Account Committee (PAC) scanner as NT planned to carry out the project without following due tender procedures. Under this stop-gap project, NT is planning to add 1.15 million GSM lines and 0.4 million IP based CDMA lines to address the demand for the current fiscal year.
“We will not have SIM cards after three months if we fail to buy additional lines through this project,” said Bishwa Nath Goyal, managing director of NT, giving clarification to the PAC meeting on Thursday. He said the project of adding 10 million GSM lines will take 16-20 months for the commissioning and around 12 months time will be required for the IP CDMA project.
Under the IP CDMA project, NT has targeted to add 2 million CDMA lines with focus on rural areas. It is also set to call a global tender for the 10 million GSM lines, bearing in mind the market demand for up to 2015.
According to NT, existing GSM network does not have the capacity for SIM distribution after mid-November this year as it has been distributing 200,000 SIMs per month on an average. Similarly, it will be able to distribute 156,000 CDMA lines only after setting up 50 additional base transcriber stations.
At the meeting, PAC members said NT should concentrate on improving its network quality. They also asked the state-owned telecom operator to follow tender process to add lines instead of introducing the bridging project and buying lines from same old venders. The final decision of the PAC regarding this project is likely to come after tomorrow afternoon’s meeting.
Lawmaker Narayan Prasad Dahal doubted over NT’s move to upgrade capacity through negotiations with same old vendors in the name of bridging project. “It should call a tender as per the law. If there are any obstacles in the Public Procurement Act, it should be amended,” he added.
NT, which is under pressure to add lines at the earliest amid stiff competition from private GSM operator Ncell, has set aside Rs 1.12 billion for the bridging project and Rs 411.26 million for CDMA lines. “If you prove our vested interest in this project, I am ready to face any action,” said Goyal at the PAC meeting.
Bhagwati Kafle, secretary of the Commission for the Investigation of Abuse of Authority, said NT faced the problem due to the delay in calling tender for network expansion. “We do not ask NT to stop the bridging project. It can move on if it does not breach the existing law,” said Kafle.
The bridging project is currently under the parliament’s Public Account Committee (PAC) scanner as NT planned to carry out the project without following due tender procedures. Under this stop-gap project, NT is planning to add 1.15 million GSM lines and 0.4 million IP based CDMA lines to address the demand for the current fiscal year.
“We will not have SIM cards after three months if we fail to buy additional lines through this project,” said Bishwa Nath Goyal, managing director of NT, giving clarification to the PAC meeting on Thursday. He said the project of adding 10 million GSM lines will take 16-20 months for the commissioning and around 12 months time will be required for the IP CDMA project.
Under the IP CDMA project, NT has targeted to add 2 million CDMA lines with focus on rural areas. It is also set to call a global tender for the 10 million GSM lines, bearing in mind the market demand for up to 2015.
According to NT, existing GSM network does not have the capacity for SIM distribution after mid-November this year as it has been distributing 200,000 SIMs per month on an average. Similarly, it will be able to distribute 156,000 CDMA lines only after setting up 50 additional base transcriber stations.
At the meeting, PAC members said NT should concentrate on improving its network quality. They also asked the state-owned telecom operator to follow tender process to add lines instead of introducing the bridging project and buying lines from same old venders. The final decision of the PAC regarding this project is likely to come after tomorrow afternoon’s meeting.
Lawmaker Narayan Prasad Dahal doubted over NT’s move to upgrade capacity through negotiations with same old vendors in the name of bridging project. “It should call a tender as per the law. If there are any obstacles in the Public Procurement Act, it should be amended,” he added.
NT, which is under pressure to add lines at the earliest amid stiff competition from private GSM operator Ncell, has set aside Rs 1.12 billion for the bridging project and Rs 411.26 million for CDMA lines. “If you prove our vested interest in this project, I am ready to face any action,” said Goyal at the PAC meeting.
Bhagwati Kafle, secretary of the Commission for the Investigation of Abuse of Authority, said NT faced the problem due to the delay in calling tender for network expansion. “We do not ask NT to stop the bridging project. It can move on if it does not breach the existing law,” said Kafle.
TATA Nano rolls in
First 100 buyers of Nano who booked the car almost a month ago received the much-awaited world´s cheapest car on Saturday.
Representatives of Sipradi Trading, the authorized distributor of Tata vehicles for Nepal, handed over the keys to the customers at a function.
Although Sipradi had announced that 352 Nanos have already been booked, its officials said remaining 252 buyers are yet to complete formalities to receive the car.
“We will deliver them Nano once they furnish the final set of bank documents,” said Sambhu Dahal, chief executive officer of Sipradi Trading.
He disclosed that the customers will now get the car directly from the showroom on first come first serve basis. “Booking will be taken from other customers soon as we have about 50 units of the vehicles in stock,” he said.
The booking of car is available at Rs 10,000 for Nano standard, Rs 20,000 for Nano CX, and Rs 30,000 for Nano LX. The company is planning to sell Nano from 14 distribution points around the country. It is also providing exclusive warranty offers to its customers of four years or 90,000 kilometers, whichever comes first.
Nano boasts of giving a mileage of 23.6 km per liter and a ground-clearance of 180 mm, the two most attractive features of the car. Three versions of the car will be available in the market - Nano, Nano CX and Nano LX. Nano is available in colors like Racing Red, Ivory White and Summer Blue. Nano CX is available in colors like Racing Red, Ivory White, Summer Blue, Champagne Gold, and Lunar Silver. Similarly, Nano LX is available in colors like Sunshine Yellow, Champagne Gold, and Lunar Silver.
Tata Nano
Rs 7,98,000 (Standard)
Rs 9,98,000 (CX)
Rs 1.17 million (LX)
Displacement: 660 cc
Mileage: 23.6 km per liter (under tested conditions)
Ground Clearance: 180 mm
Representatives of Sipradi Trading, the authorized distributor of Tata vehicles for Nepal, handed over the keys to the customers at a function.
Although Sipradi had announced that 352 Nanos have already been booked, its officials said remaining 252 buyers are yet to complete formalities to receive the car.
“We will deliver them Nano once they furnish the final set of bank documents,” said Sambhu Dahal, chief executive officer of Sipradi Trading.
He disclosed that the customers will now get the car directly from the showroom on first come first serve basis. “Booking will be taken from other customers soon as we have about 50 units of the vehicles in stock,” he said.
The booking of car is available at Rs 10,000 for Nano standard, Rs 20,000 for Nano CX, and Rs 30,000 for Nano LX. The company is planning to sell Nano from 14 distribution points around the country. It is also providing exclusive warranty offers to its customers of four years or 90,000 kilometers, whichever comes first.
Nano boasts of giving a mileage of 23.6 km per liter and a ground-clearance of 180 mm, the two most attractive features of the car. Three versions of the car will be available in the market - Nano, Nano CX and Nano LX. Nano is available in colors like Racing Red, Ivory White and Summer Blue. Nano CX is available in colors like Racing Red, Ivory White, Summer Blue, Champagne Gold, and Lunar Silver. Similarly, Nano LX is available in colors like Sunshine Yellow, Champagne Gold, and Lunar Silver.
Tata Nano
Rs 7,98,000 (Standard)
Rs 9,98,000 (CX)
Rs 1.17 million (LX)
Displacement: 660 cc
Mileage: 23.6 km per liter (under tested conditions)
Ground Clearance: 180 mm
Commercial banks must insure small deposits
Nepal Rastra Bank (NRB) has asked commercial banks to insure all small deposits up to Rs 200,000 to secure savings of small depositors and raise their confidence in the banking system.
The central bank enforced the much-touted insurance plan through a directive on Thursday, making its implementation mandatory for all 31 commercial banks.
This has effectively made the provision applicable across the board in the country´s banking and financial system as development banks, finance companies and micro-finance institutions were already following it.
The NRB has also asked the banks to regularly furnish quarterly details of small deposits and number of small deposit holders to Deposit and Credit Guarantee Corporation (DCGC), the state-owned deposit insurer.
NRB, however, has maintained silence over raising the ceiling of deposits that need to be insured, despite promising to do so in the monetary policy. The government in the budget speech had announced that it will raise the ceiling of insurable deposits to Rs 400,000 from existing Rs 200,000.
Nonetheless, officials said across-the-board enforcement of deposit insurance would assure depositors about safety of their money and build depositors confidence in the banking and financial system.
So far, 133 financial institutions, including 66 development banks and 67 finance companies have signed up with DCGC, insuring deposits worth over Rs 51 billion under the policy that the government launched two years ago.
Going by the DCGC bylaws, if any of these companies went bankrupt, DCGC would pay each of their depositors as much as Rs 200,000 within 15 days of receiving due report from the liquidator.
For the service, financial institutions have paid 20 paisa as insurance premium per Rs 100 of deposit per year. “The rate will be same for banks as well,” said an official at DCGC. However, Ashoke Rana, president of Nepal Bankers´ Association said the rate was higher and requested corporation to review it downward.
Likewise, the government has injected a fresh capital of Rs 250 million into the state-owned deposit and credit insurer in order to step-up its capacity to insure and repay the claims. It has also endorsed a plan to gradually raise DCGC´s capital to Rs 2 billion.
The government is also formulating DCGC Act to ensure security guarantee of deposits in all BFIs.
The central bank enforced the much-touted insurance plan through a directive on Thursday, making its implementation mandatory for all 31 commercial banks.
This has effectively made the provision applicable across the board in the country´s banking and financial system as development banks, finance companies and micro-finance institutions were already following it.
The NRB has also asked the banks to regularly furnish quarterly details of small deposits and number of small deposit holders to Deposit and Credit Guarantee Corporation (DCGC), the state-owned deposit insurer.
NRB, however, has maintained silence over raising the ceiling of deposits that need to be insured, despite promising to do so in the monetary policy. The government in the budget speech had announced that it will raise the ceiling of insurable deposits to Rs 400,000 from existing Rs 200,000.
Nonetheless, officials said across-the-board enforcement of deposit insurance would assure depositors about safety of their money and build depositors confidence in the banking and financial system.
So far, 133 financial institutions, including 66 development banks and 67 finance companies have signed up with DCGC, insuring deposits worth over Rs 51 billion under the policy that the government launched two years ago.
Going by the DCGC bylaws, if any of these companies went bankrupt, DCGC would pay each of their depositors as much as Rs 200,000 within 15 days of receiving due report from the liquidator.
For the service, financial institutions have paid 20 paisa as insurance premium per Rs 100 of deposit per year. “The rate will be same for banks as well,” said an official at DCGC. However, Ashoke Rana, president of Nepal Bankers´ Association said the rate was higher and requested corporation to review it downward.
Likewise, the government has injected a fresh capital of Rs 250 million into the state-owned deposit and credit insurer in order to step-up its capacity to insure and repay the claims. It has also endorsed a plan to gradually raise DCGC´s capital to Rs 2 billion.
The government is also formulating DCGC Act to ensure security guarantee of deposits in all BFIs.
Nepal Telecom may fail to issue new mobile SIMs
Close on the hills of losing the leadership position in mobile telephony to Ncell, state-owned Nepal Telecom (NT) is on the brink of a serious crisis -- it may run out of available GSM lines by mid-November.
That would mean no new NT SIM will be available in the market. More than the revenue, it can seriously impair its image and brand value.
Managing Director of NT Bishow Nath Goyal said the telecom has no alternatives. "If the ´bridging project´ is not implemented timely, we will not have GSM SIM cards to distribute after October," Goyal told Republica.
The planned new project of 10 million GSM lines is going to take as long as 20 months to be completed. "We are calling a global tender shortly for the project. But since this is a big project, it will take 16-20 months," said Goyal, adding that PAC should allow it to go ahead with the bridging-project as there is no option to bridge the gap. The 10 million GSM lines have been planned keeping in mind demand in the the market till 2015.
As NT´s bridging-project has already landed in controversy inviting a probe by the Parliamentary Accounts Committe (PAC), there is no hope in sight for NT. The bridging-project aims to ensure supply of mobile lines in the intermittant period till NT puts in place necessary arrangements for more CDMA and GSM lines and the project was given to Chinese company ZTE without inviting a tender, a fact PAC finds unacceptable.
However, Goyal said the idea of bridging-project was to bridge the gap till the big projects come into effect. NT was planning to bring bridging into effect in next four months so that it could supply GSM and CDMA lines without any fear of short supply.
On an average, NT requires 200,000 SIM cards a month and it has the stock barely to last three months. According to NT officials, the operator has only 520,000 GSM lines and 156,000 CDMA lines remaining in the stock.
NT´s bridging-project, under which it decided to add 1.15 million GSM lines and 400,000 IP CDMA lines, hit a snag mainly as PAC charged NT with bypassing the procurement procedure. The work was given to ZTE, calling the new development a continuation of the previous project for which tender was awarded to ZTE.
This is certain to delay the procedure. If PAC finds more wrongdoings by the NT management in the matter, it will put NT in a ridiculous situation in which it is not able to supply mere SIM cards in the market, forget wresting its leadership position through better marketing strategy.
The regulator Nepal Telecommunication Authority (NTA) is apparently at a loss to offer any practical way-out of this messy situation and is content with cursing NT management. "The emotional blackmail measures won´t add up to anything without fulfilling the procedural requirements," an NTA official said.
However, the official said a timely decision on the part of PAC is must for the operator to save its face and compete against private operators.
That would mean no new NT SIM will be available in the market. More than the revenue, it can seriously impair its image and brand value.
Managing Director of NT Bishow Nath Goyal said the telecom has no alternatives. "If the ´bridging project´ is not implemented timely, we will not have GSM SIM cards to distribute after October," Goyal told Republica.
The planned new project of 10 million GSM lines is going to take as long as 20 months to be completed. "We are calling a global tender shortly for the project. But since this is a big project, it will take 16-20 months," said Goyal, adding that PAC should allow it to go ahead with the bridging-project as there is no option to bridge the gap. The 10 million GSM lines have been planned keeping in mind demand in the the market till 2015.
As NT´s bridging-project has already landed in controversy inviting a probe by the Parliamentary Accounts Committe (PAC), there is no hope in sight for NT. The bridging-project aims to ensure supply of mobile lines in the intermittant period till NT puts in place necessary arrangements for more CDMA and GSM lines and the project was given to Chinese company ZTE without inviting a tender, a fact PAC finds unacceptable.
However, Goyal said the idea of bridging-project was to bridge the gap till the big projects come into effect. NT was planning to bring bridging into effect in next four months so that it could supply GSM and CDMA lines without any fear of short supply.
On an average, NT requires 200,000 SIM cards a month and it has the stock barely to last three months. According to NT officials, the operator has only 520,000 GSM lines and 156,000 CDMA lines remaining in the stock.
NT´s bridging-project, under which it decided to add 1.15 million GSM lines and 400,000 IP CDMA lines, hit a snag mainly as PAC charged NT with bypassing the procurement procedure. The work was given to ZTE, calling the new development a continuation of the previous project for which tender was awarded to ZTE.
This is certain to delay the procedure. If PAC finds more wrongdoings by the NT management in the matter, it will put NT in a ridiculous situation in which it is not able to supply mere SIM cards in the market, forget wresting its leadership position through better marketing strategy.
The regulator Nepal Telecommunication Authority (NTA) is apparently at a loss to offer any practical way-out of this messy situation and is content with cursing NT management. "The emotional blackmail measures won´t add up to anything without fulfilling the procedural requirements," an NTA official said.
However, the official said a timely decision on the part of PAC is must for the operator to save its face and compete against private operators.
Nepali mission in London initiates trade and investment drive
Nepali ambassador to the United Kingdom Dr Suresh C Chalise Thursday hosted a commercial reception at the Embassy of Nepal in London for representatives from more than 100 British organizations, including The Body Shop, Twinning´s, Finlay´s, AECOM, PwC, UKTI, URS Scott Wilson, HSBC, BAA.
The reception was organized to highlight the potential of Nepal as an emerging market for trade and investment, the Nepali mission in London said in a statement.
“The reception was the first of its kind organized by the embassy in London after the government identified 19 priority export sectors under the Nepalese Integration and Trade Strategy (NTIS) 2010. It acts as a prelude to the British Trade Mission to Nepal in October,” the statement added.
Speaking on the occasion, Chalise emphasised the need to deepen Nepall-UK relations through further economic cooperation at the business community level.
Similarly, Kewal Shrestha, representative of Nepal Britain Chamber of Commerce & Industry, highlighted the strategic significance of Nepal´s location between emerging market giants India and China and the opportunities it presents for businesses.
According to the statement, William Westgate of London Training School gave an alternative insight into Nepal as a foreign businessman who has had experience of conducting business in and with Nepal.
The reception was organized to highlight the potential of Nepal as an emerging market for trade and investment, the Nepali mission in London said in a statement.
“The reception was the first of its kind organized by the embassy in London after the government identified 19 priority export sectors under the Nepalese Integration and Trade Strategy (NTIS) 2010. It acts as a prelude to the British Trade Mission to Nepal in October,” the statement added.
Speaking on the occasion, Chalise emphasised the need to deepen Nepall-UK relations through further economic cooperation at the business community level.
Similarly, Kewal Shrestha, representative of Nepal Britain Chamber of Commerce & Industry, highlighted the strategic significance of Nepal´s location between emerging market giants India and China and the opportunities it presents for businesses.
According to the statement, William Westgate of London Training School gave an alternative insight into Nepal as a foreign businessman who has had experience of conducting business in and with Nepal.
'Encourage foreign investment for development'
Former finance secretary Rameshore Khanal has said that unless foreign investors are encouraged, economic development of the country would be difficult to achieve.
Speaking at program organized by Baglung Jyacees on Friday, Khanal said that unwelcoming behaviors towards foreign investors create negative impression of the country in international arena.
“At present, we have to attract foreign investment by creating secure investment climate,” he said, indicating at the recent disturbances seen in the hydropower projects and industries.
He further said in the name of trade union, the practice of halting the operations of industries has begun. He stated that the influence of politics has spoilt the labor-industrialist relation.
Commenting on the budget of the fiscal year, he said the budget was distributive instead of being productive.
“The size of budget to get bigger is a positive thing, but focus on production is a must to have a positive impact on economy,” he said.
Speaking at program organized by Baglung Jyacees on Friday, Khanal said that unwelcoming behaviors towards foreign investors create negative impression of the country in international arena.
“At present, we have to attract foreign investment by creating secure investment climate,” he said, indicating at the recent disturbances seen in the hydropower projects and industries.
He further said in the name of trade union, the practice of halting the operations of industries has begun. He stated that the influence of politics has spoilt the labor-industrialist relation.
Commenting on the budget of the fiscal year, he said the budget was distributive instead of being productive.
“The size of budget to get bigger is a positive thing, but focus on production is a must to have a positive impact on economy,” he said.
Rise in tourist flow increases national park's revenue
Chitwan National Park collected about Rs 22.5 million more in the fiscal year 2010/11 in comparison to that of 2009/10 due to the rise in the number of tourists visiting the place.
According to the information provided by the national park, the total revenue collected from the entrance fee to the park was Rs 83.14 million in the fiscal year 2010/11. The amount was 61.01 million in the fiscal year 2009/10.
One entrance ticket is valid for only a day, and if visitors want to reenter the park next day, they have to purchase another ticket.
“The total number of tickets issued in the last fiscal year was 46,662 units whereas in the fiscal year before that, the number of tickets issued were only 15,181 units,” said Tika Ram Poudel, assistant warden of the national park. About 50 percent of the revenue collected from the national park is invested in the development of buffer zone.
Entrance fee is Rs 500 for foreigners, Rs 200 for tourists from SAARC countries and Rs 20 for Nepali nationalities. In the fiscal year 2010/11, 90,722 foreigners, 16,005 visitors from SAARC countries and 31,309 Nepali visited the national park.
A significant increase was recorded in the number of visitors from all categories as the visitors in the fiscal year 2009/10 were 72,993 foreigners, 10,899 people from the SAARC countries and 31,309 Nepalis.
“Even though the number of visitors has increased, it was not as high as expected from the Tourism Year 2011,” many stakeholders related with the business said. Government had aimed to attract about one million tourists in the Tourism Year, among which about 300,000 tourists were expected to visit Chitwan National Park.
The national park has some endangered as well as rare species of birds and animals like one horned Asiatic Rhino, Royal Bengal Tiger and other birds and reptiles which are the attracting factors of the place. The place has about 70 lodges and resorts..
According to the information provided by the national park, the total revenue collected from the entrance fee to the park was Rs 83.14 million in the fiscal year 2010/11. The amount was 61.01 million in the fiscal year 2009/10.
One entrance ticket is valid for only a day, and if visitors want to reenter the park next day, they have to purchase another ticket.
“The total number of tickets issued in the last fiscal year was 46,662 units whereas in the fiscal year before that, the number of tickets issued were only 15,181 units,” said Tika Ram Poudel, assistant warden of the national park. About 50 percent of the revenue collected from the national park is invested in the development of buffer zone.
Entrance fee is Rs 500 for foreigners, Rs 200 for tourists from SAARC countries and Rs 20 for Nepali nationalities. In the fiscal year 2010/11, 90,722 foreigners, 16,005 visitors from SAARC countries and 31,309 Nepali visited the national park.
A significant increase was recorded in the number of visitors from all categories as the visitors in the fiscal year 2009/10 were 72,993 foreigners, 10,899 people from the SAARC countries and 31,309 Nepalis.
“Even though the number of visitors has increased, it was not as high as expected from the Tourism Year 2011,” many stakeholders related with the business said. Government had aimed to attract about one million tourists in the Tourism Year, among which about 300,000 tourists were expected to visit Chitwan National Park.
The national park has some endangered as well as rare species of birds and animals like one horned Asiatic Rhino, Royal Bengal Tiger and other birds and reptiles which are the attracting factors of the place. The place has about 70 lodges and resorts..
Government misses revenue target by Rs 16billion
Nepal witnessed a sharp reversal in revenue collections and missed targets by well over Rs 16 billion in 2010/11, thanks to a sharp rise in cross-border smuggling and drop in imports of major revenue contributors like vehicles.
According to MoF, the government mobilized just about Rs 200 billion in revenue in the last fiscal year, whereas the target was set at over Rs 216 billion. The ministry last month had claimed that it would mobilize at least Rs 206 billion.
But final figures show we failed to realize even the revised target, said Finance Secretary Krishna Hari Baskota.
He along with senior revenue officials attributed the drop, which was witnessed for the first time since Nepal bolstered revenue administration four years ago, to decline in imports of vehicles and petroleum products that make huge contribution in revenue.
“Amid realty slump, the consumption of vehicles dropped sharply, leaving heavy impact in the collections,” said a senior official with the Department of Customs.
However, not all revenue officials agree with him.
“Everyone knows cross-border smuggling rose like never before with poor governance and weak leadership at the helm of MoF. That fundamentally caused the revenue loss,” said a MoF official.
Senior officials of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) also admit publicly that smuggling, which increased sharply, could have gone up to the equivalent of 60 percent of official trade in 2010/11. Officials at Nepal Rastra Bank agree with them, and cited the pressure they are facing to meet the soaring demand for Indian currency (IC) as a fallout.
"Latest data show consumption stands strong, but government figures show domestic productions have grown only nominally. So where is the supply coming from?" questioned a NRB source.
For instance, NRB data show country´s gold import has shrunk to Rs 9 billion in the eleven months of 2010/11 from Rs 39 billion recorded in the same period of the previous year. But dealers openly admit that consumption of gold still remains high and demand is being met through smuggled supply from India.
According to MoF, the government mobilized just about Rs 200 billion in revenue in the last fiscal year, whereas the target was set at over Rs 216 billion. The ministry last month had claimed that it would mobilize at least Rs 206 billion.
But final figures show we failed to realize even the revised target, said Finance Secretary Krishna Hari Baskota.
He along with senior revenue officials attributed the drop, which was witnessed for the first time since Nepal bolstered revenue administration four years ago, to decline in imports of vehicles and petroleum products that make huge contribution in revenue.
“Amid realty slump, the consumption of vehicles dropped sharply, leaving heavy impact in the collections,” said a senior official with the Department of Customs.
However, not all revenue officials agree with him.
“Everyone knows cross-border smuggling rose like never before with poor governance and weak leadership at the helm of MoF. That fundamentally caused the revenue loss,” said a MoF official.
Senior officials of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) also admit publicly that smuggling, which increased sharply, could have gone up to the equivalent of 60 percent of official trade in 2010/11. Officials at Nepal Rastra Bank agree with them, and cited the pressure they are facing to meet the soaring demand for Indian currency (IC) as a fallout.
"Latest data show consumption stands strong, but government figures show domestic productions have grown only nominally. So where is the supply coming from?" questioned a NRB source.
For instance, NRB data show country´s gold import has shrunk to Rs 9 billion in the eleven months of 2010/11 from Rs 39 billion recorded in the same period of the previous year. But dealers openly admit that consumption of gold still remains high and demand is being met through smuggled supply from India.
Development agencies asked to complete tender by mid-Nov
In a bid to speed up development spending, Ministry of Finance (MoF) has asked all government ministries to get their development programs approved, and delegate the task of implementation to the concerned agencies by August 10.
Likewise, it has instructed all agencies executing the development programs to complete the necessary bidding process by the end of mid-November so that development works could be implemented smoothly over the remaining months of the fiscal year.
The ministry took such aggressive approach mainly because the development spending remained pretty low in the previous fiscal years. Besides, the new budget has raised capital expenditure by almost 14 percent to about Rs 149 billion.
“Lack of timely budget has already robbed from us the crucial developmental opportunities for the last three fiscal years. But as we have the budget on time, we want to be sure it is optimally utilized,” said Finance Secretary Krishna Hari Baskota.
Even though the parliament is yet to hold discussions on the appropriation bill and endorse the budget, MoF has already delegated spending authority to all the government ministries and local bodies.
It has asked them to get their programs approved from National Planning Commission within the second week of August and complete tender process by the end of the fourth month of the fiscal year.
“Basically, we wish the concerned authorities complete all basic procedures soon so that development works could be carried out smoothly over the remaining eight months,” said Baskota.
As a big chunk of the capital budget has been allocated for programs that are already into implementation, officials are hopeful that government will manage to spend the budget this year.
Likewise, it has instructed all agencies executing the development programs to complete the necessary bidding process by the end of mid-November so that development works could be implemented smoothly over the remaining months of the fiscal year.
The ministry took such aggressive approach mainly because the development spending remained pretty low in the previous fiscal years. Besides, the new budget has raised capital expenditure by almost 14 percent to about Rs 149 billion.
“Lack of timely budget has already robbed from us the crucial developmental opportunities for the last three fiscal years. But as we have the budget on time, we want to be sure it is optimally utilized,” said Finance Secretary Krishna Hari Baskota.
Even though the parliament is yet to hold discussions on the appropriation bill and endorse the budget, MoF has already delegated spending authority to all the government ministries and local bodies.
It has asked them to get their programs approved from National Planning Commission within the second week of August and complete tender process by the end of the fourth month of the fiscal year.
“Basically, we wish the concerned authorities complete all basic procedures soon so that development works could be carried out smoothly over the remaining eight months,” said Baskota.
As a big chunk of the capital budget has been allocated for programs that are already into implementation, officials are hopeful that government will manage to spend the budget this year.
Balance of Profit recorded surplus of Rs 249.1 million
After about two years of continued deficit, balance of payment (BoP) has recorded a surplus of Rs 249.1 million during the eleven months of 2010/11. The BoP deficit had touched Rs 22 billion in the previous year.
Likewise, inflation that was well in double digit till a couple of months ago has moderated to 8.8 percent in mid-June, according to Nepal Rastra Bank (NRB) that released the macro-economic report for the first 11 months of the last fiscal year.
The central bank has attributed the improvement in BoP to slowed growth of trade deficit, rise in grants and pension receipts, among others.
"Remittances from Nepalis in overseas jobs increased by 10.1 percent to Rs 229.52 billion during the period," says the report. Likewise, foreign direct investment (FDI) inflow also shot up to Rs 6.06 billion, which was Rs 2.41 billion in the same period of the previous fiscal year.
As a result, country´s gross foreign exchange reserves increased by 0.3 percent to Rs 269.77 billion in mid-June 2011 from a level of Rs 268.91 billion as at mid-July 2010.
Of the total reserve, NRB´s reserve rose by four percent to Rs 213.54 billion in the review period from a level of Rs 205.37 billion as at mid-July 2010.
Likewise, the report states that the year-on-year inflation as measured by the consumer price index increased to 8.8 percent in mid-June 2011. It was 9.6 percent in mid-May and 10.6 percent in mid-April.
The central bank has attributed it to nominal drop in prices of food items during the month.
According to the report, prices of foods and beverages increased by 14.3 percent in mid-June. A month ago, the prices of food items had gone up by over 16 percent. The prices of non-food items and services also rose by 4.3 percent during the period.
Of the food items, the price of vegetables shot up by the highest rate of 46.6 percent compared to the fall by 13.4 percent during the corresponding period the previous year. The price of fruits and sugar and sweets also increased by 28.2 percent and 23.4 percent respectively during the review period.
The prices of tobacco products and cereal grains increased by 15.3 percent and 10.4 percent respectively over the period.
Within the group of non-food and services, the prices of clothing and footwear increased by 14.7 percent over the review period compared to the price recorded during corresponding period the previous year.
Likewise, inflation that was well in double digit till a couple of months ago has moderated to 8.8 percent in mid-June, according to Nepal Rastra Bank (NRB) that released the macro-economic report for the first 11 months of the last fiscal year.
The central bank has attributed the improvement in BoP to slowed growth of trade deficit, rise in grants and pension receipts, among others.
"Remittances from Nepalis in overseas jobs increased by 10.1 percent to Rs 229.52 billion during the period," says the report. Likewise, foreign direct investment (FDI) inflow also shot up to Rs 6.06 billion, which was Rs 2.41 billion in the same period of the previous fiscal year.
As a result, country´s gross foreign exchange reserves increased by 0.3 percent to Rs 269.77 billion in mid-June 2011 from a level of Rs 268.91 billion as at mid-July 2010.
Of the total reserve, NRB´s reserve rose by four percent to Rs 213.54 billion in the review period from a level of Rs 205.37 billion as at mid-July 2010.
Likewise, the report states that the year-on-year inflation as measured by the consumer price index increased to 8.8 percent in mid-June 2011. It was 9.6 percent in mid-May and 10.6 percent in mid-April.
The central bank has attributed it to nominal drop in prices of food items during the month.
According to the report, prices of foods and beverages increased by 14.3 percent in mid-June. A month ago, the prices of food items had gone up by over 16 percent. The prices of non-food items and services also rose by 4.3 percent during the period.
Of the food items, the price of vegetables shot up by the highest rate of 46.6 percent compared to the fall by 13.4 percent during the corresponding period the previous year. The price of fruits and sugar and sweets also increased by 28.2 percent and 23.4 percent respectively during the review period.
The prices of tobacco products and cereal grains increased by 15.3 percent and 10.4 percent respectively over the period.
Within the group of non-food and services, the prices of clothing and footwear increased by 14.7 percent over the review period compared to the price recorded during corresponding period the previous year.
Conspiracy to collapse Janakpur Cigarette Industry
General Manager of Janakpur Cigarette Industry (JCI) Shyam Kumar Mahato claimed the industries´ that encounter the industry have been plotting conspiracies to collapse it.
Speaking at a press meet organised by the industry in Janakpurdham on Thursday, Mahato said some government employees in the Ministry of Industry have been trying to collapse the existence of the industry.
He reported some of the ´so called´ workers´ representatives misbehaved him at the industry premises while he was coming to the industry for work encouraged by Ministry of Home and Public Account Committee. He added the group thrashed his personal assistant and security guard on the occasion.
He claimed no crisis to run the industry as it owns Rs. 5 billion of property saying if they were provided with the security, the management was ready to run the industry from Friday.
He said the industry has 80 tons tobacco in stock to run industry.
Speaking at a press meet organised by the industry in Janakpurdham on Thursday, Mahato said some government employees in the Ministry of Industry have been trying to collapse the existence of the industry.
He reported some of the ´so called´ workers´ representatives misbehaved him at the industry premises while he was coming to the industry for work encouraged by Ministry of Home and Public Account Committee. He added the group thrashed his personal assistant and security guard on the occasion.
He claimed no crisis to run the industry as it owns Rs. 5 billion of property saying if they were provided with the security, the management was ready to run the industry from Friday.
He said the industry has 80 tons tobacco in stock to run industry.
Tuesday, July 26, 2011
NEPAL TELECOM AUTHORITY (NTA) to ask for number of 3G data service users
The Nepal Telecommuni-cations Authority has stated that it will soon ask Nepal Telecom and Ncell to provide figures of their 3G data service users separately. The operators have been providing data that includes their GPRS users.
As of mid-June this year, there were 2.66 million people in Nepal using internet service through GPRS. However, it is not clear how many of them are subscribers to high speed 3G data service. Ncell, the market leader in GSM mobile service, has been offering 3G data card service for the last 10 months. Nepal Telecom, the state-owned telecom service provider, started the service in May.
“We will soon ask telecom operators to provide the number of their 3G data service subscribers,” said Kumar Prasad Sharma, director of the authority. Authority officials said that all the service providers were required to submit the real number of their subscribers separately based on the services they offer.
After two dozen internet service providers (ISP) failed to submit figures about their subscribers monthly, the authority is also preparing to re-direct them to make available the data. There are 50 ISPs in the country. Despite the authority’s directive, only 26 ISPs have provided the number of their users.
According to the recent MIS data released by the authority, the 26 ISPs in the country have a subscriber base of 48,689 as of mid-June. This is a fall of 20.18 percent compared to 61,000 subscribers as of mid-June 2009. For the last couple of years, ISPs have been finding it hard to continue their business following the launch of ADSL internet service by Nepal Telecom, increased use of GPRS and now the launch of 3G data card service by telecom operators.
Binay Bohara, president of the Internet Service Providers Association of Nepal, said that many people had stopped subscribing to dial-up internet service during the last one year. According to him, people were also reluctant to subscribe to cable internet which is comparatively dearer because of the problem of load-shedding.
Among the customers of ISPs, 13,276 belong to the dial-up segment, 21,080 to wireless modem and optical fibre ethernet and 14,333 to cable modem or cable internet for data service. Based on the number of subscribers, Wordlink Communications has the largest subscriber base of 19,858. Broad Link Network and Communication has a user base of 11,792. Two other major ISPs, Mercantile Communication and Subisu Cablenet, have 9,445 and 4,150 subscribers respectively.
As of mid-June this year, there were 2.66 million people in Nepal using internet service through GPRS. However, it is not clear how many of them are subscribers to high speed 3G data service. Ncell, the market leader in GSM mobile service, has been offering 3G data card service for the last 10 months. Nepal Telecom, the state-owned telecom service provider, started the service in May.
“We will soon ask telecom operators to provide the number of their 3G data service subscribers,” said Kumar Prasad Sharma, director of the authority. Authority officials said that all the service providers were required to submit the real number of their subscribers separately based on the services they offer.
After two dozen internet service providers (ISP) failed to submit figures about their subscribers monthly, the authority is also preparing to re-direct them to make available the data. There are 50 ISPs in the country. Despite the authority’s directive, only 26 ISPs have provided the number of their users.
According to the recent MIS data released by the authority, the 26 ISPs in the country have a subscriber base of 48,689 as of mid-June. This is a fall of 20.18 percent compared to 61,000 subscribers as of mid-June 2009. For the last couple of years, ISPs have been finding it hard to continue their business following the launch of ADSL internet service by Nepal Telecom, increased use of GPRS and now the launch of 3G data card service by telecom operators.
Binay Bohara, president of the Internet Service Providers Association of Nepal, said that many people had stopped subscribing to dial-up internet service during the last one year. According to him, people were also reluctant to subscribe to cable internet which is comparatively dearer because of the problem of load-shedding.
Among the customers of ISPs, 13,276 belong to the dial-up segment, 21,080 to wireless modem and optical fibre ethernet and 14,333 to cable modem or cable internet for data service. Based on the number of subscribers, Wordlink Communications has the largest subscriber base of 19,858. Broad Link Network and Communication has a user base of 11,792. Two other major ISPs, Mercantile Communication and Subisu Cablenet, have 9,445 and 4,150 subscribers respectively.
Auto registrations in Bagmati down 22pc
Registrations of vehicles in the last fiscal year in Bagmati zone, the country’s largest automobile market, were down 22.13 percent compared to fiscal 2009-10. Automobile dealers have attributed the slump in registrations and sales to the hike in excise duty and liquidity crunch in bank and financial institutions (BFI).
According to the Bagmati Zone Transport Management Office, 64,010 vehicles (four wheelers and two wheelers) were registered in Bagmati during fiscal 2010-11, down from 82,204 in 2009-10. Bagmati accounts for 60 percent of auto registrations and sales in the country.
The number of motorcycles registered in 2010-11 stood at 53,690, down from 69,369 in the previous fiscal. Likewise, registrations of four-wheelers dipped 21.75 percent to 10,050 from 12,845 in fiscal 2009-10. Of the total four wheelers registered, 7,013 units were car, jeep and vans. Madan Singh Mahat, undersecretary and chief of the two-wheeler unit at Bagmati Zonal Transport Management Office, said registrations declined as a result of reduced import and slowdown in sales. “We were able to collect only Rs 540 million in vehicle tax against the target of Rs 660 million,” he added.
The government through the last year’s budget had increased excise duty on four wheelers by 10 percent to 60 percent and in two wheelers by 10 percent to 40 percent. In the wake of liquidity crisis, BFIs had also increased interest rates on auto loans from around 8 percent in 2009-10 to more than 16 percent in 2010-11. According to Saurav Jyoti, president of Nepal Automobile Dealers’ Association (NADA) the current market slump is the biggest in 15 years. “Sales of automobiles has dropped in such a way that it seems it will be very difficult for us to sustain if the situation remains same,” said Jyoti, adding that the market is not likely to bounce back even this year.
Jyoti added that around 400 to 500 four wheelers are awaiting clearance in customs offices. “The overall market dropped by around 40 percent in last fiscal year. We had requested the government to provide some relief in the new budget, but to no avail,” he said.
Earlier, NADA had demanded that the government limit the excise duty to 45 percent in four wheelers and 25 percent in bikes. However, there was no change in the excise duty structure in the new budget. Shekhar Golchha, executive director of HH Bajaj and vice-president of NADA, said two-wheeler sales dropped by 30-40 percent in the last fiscal year. “The government must not formulate policies only keeping mind traffic congestions on Valley roads,” he added.
FY 2010/11
Month Motorcycle Four Wheelers
Mid-July to mid-Aug 5420 948
Mid- Aug to mid-Sept 7112 954
Mid-Sept to mid-Oct 5044 1062
Mid- Oct to mid-Nov 4507 1247
Mid-Nov to mid-Dec 5842 971
Mid-Dec to mid-Jan 4619 499
Mid-Jan to mid-Feb 3839 757
Mid-Feb to mid-March 5788 801
Mid-March to mid-April 2851 682
Mid-April to mid-May 1977 606
Mid-May to mid-Jun 2036 640
Mid-Jun to mid-July 4925 883
Total 53,690 10,050
According to the Bagmati Zone Transport Management Office, 64,010 vehicles (four wheelers and two wheelers) were registered in Bagmati during fiscal 2010-11, down from 82,204 in 2009-10. Bagmati accounts for 60 percent of auto registrations and sales in the country.
The number of motorcycles registered in 2010-11 stood at 53,690, down from 69,369 in the previous fiscal. Likewise, registrations of four-wheelers dipped 21.75 percent to 10,050 from 12,845 in fiscal 2009-10. Of the total four wheelers registered, 7,013 units were car, jeep and vans. Madan Singh Mahat, undersecretary and chief of the two-wheeler unit at Bagmati Zonal Transport Management Office, said registrations declined as a result of reduced import and slowdown in sales. “We were able to collect only Rs 540 million in vehicle tax against the target of Rs 660 million,” he added.
The government through the last year’s budget had increased excise duty on four wheelers by 10 percent to 60 percent and in two wheelers by 10 percent to 40 percent. In the wake of liquidity crisis, BFIs had also increased interest rates on auto loans from around 8 percent in 2009-10 to more than 16 percent in 2010-11. According to Saurav Jyoti, president of Nepal Automobile Dealers’ Association (NADA) the current market slump is the biggest in 15 years. “Sales of automobiles has dropped in such a way that it seems it will be very difficult for us to sustain if the situation remains same,” said Jyoti, adding that the market is not likely to bounce back even this year.
Jyoti added that around 400 to 500 four wheelers are awaiting clearance in customs offices. “The overall market dropped by around 40 percent in last fiscal year. We had requested the government to provide some relief in the new budget, but to no avail,” he said.
Earlier, NADA had demanded that the government limit the excise duty to 45 percent in four wheelers and 25 percent in bikes. However, there was no change in the excise duty structure in the new budget. Shekhar Golchha, executive director of HH Bajaj and vice-president of NADA, said two-wheeler sales dropped by 30-40 percent in the last fiscal year. “The government must not formulate policies only keeping mind traffic congestions on Valley roads,” he added.
FY 2010/11
Month Motorcycle Four Wheelers
Mid-July to mid-Aug 5420 948
Mid- Aug to mid-Sept 7112 954
Mid-Sept to mid-Oct 5044 1062
Mid- Oct to mid-Nov 4507 1247
Mid-Nov to mid-Dec 5842 971
Mid-Dec to mid-Jan 4619 499
Mid-Jan to mid-Feb 3839 757
Mid-Feb to mid-March 5788 801
Mid-March to mid-April 2851 682
Mid-April to mid-May 1977 606
Mid-May to mid-Jun 2036 640
Mid-Jun to mid-July 4925 883
Total 53,690 10,050
Ncell sales more than double
Ncell’s net sales more than doubled to Rs 5.35 billion in the second quarter (Q2) of 2011. TeliaSonera—the parent company of Ncell—has stated that the 108.6 percent growth was supported by continued strong subscription intake.
As of Q2 this year, Ncell’s total number of subscriptions has increased to 5.4 million, making it the GSM market leader in Nepal. In the same period last year, net sales were recorded at Rs 2.56 billion with subscriptions reaching 2.7 million.
“Ncell became the GSM market leader and revenues more than doubled compared to last year,” said Lars Nyberg, president and CEO of TeliaSonera in a press release issued on Wednesday. According to him, revenue from the voice service surged 120 percent.
Ncell—the first private sector mobile service operator in the country—had clinched the top spot from the state-owned Nepal Telecom during the period of mid-Feb to mid-Mar, 2011. TeliaSonera holds an 80 percent stake in Ncell.
In the second quarter subscriptions, Nepal, Kazakhstan and Uzbekistan recorded the largest growths under TeliaSonera’s Eurasia market, with an increment of 0.6 million, 0.4 million and 0.1 million subscriptions, respectively. The Eurasia includes Ncell, Kcell in Kazakshstan, Azercell in Azerbaijan, Ucell in Uzbekistan, Tcell in Tajikistan, Geocell in Georgia and Moldcell in Moldova.
Sanju Koirala, corporate communication manager of Ncell, said the company has been adding more than 200,000 new subscribers every month on an average. She added that the company is primarily focusing on expanding voice service to new un-served areas.
In total, net sales of TeliaSonera—Europe’s 5th largest telecom operator—have increased by 3 percent in Q2 supported by Mobility Sweden, Kcell, Ncell and Yoigo in Spain. Its total subscriber base has increased to 159.4 million as of Q2.
As of Q2 this year, Ncell’s total number of subscriptions has increased to 5.4 million, making it the GSM market leader in Nepal. In the same period last year, net sales were recorded at Rs 2.56 billion with subscriptions reaching 2.7 million.
“Ncell became the GSM market leader and revenues more than doubled compared to last year,” said Lars Nyberg, president and CEO of TeliaSonera in a press release issued on Wednesday. According to him, revenue from the voice service surged 120 percent.
Ncell—the first private sector mobile service operator in the country—had clinched the top spot from the state-owned Nepal Telecom during the period of mid-Feb to mid-Mar, 2011. TeliaSonera holds an 80 percent stake in Ncell.
In the second quarter subscriptions, Nepal, Kazakhstan and Uzbekistan recorded the largest growths under TeliaSonera’s Eurasia market, with an increment of 0.6 million, 0.4 million and 0.1 million subscriptions, respectively. The Eurasia includes Ncell, Kcell in Kazakshstan, Azercell in Azerbaijan, Ucell in Uzbekistan, Tcell in Tajikistan, Geocell in Georgia and Moldcell in Moldova.
Sanju Koirala, corporate communication manager of Ncell, said the company has been adding more than 200,000 new subscribers every month on an average. She added that the company is primarily focusing on expanding voice service to new un-served areas.
In total, net sales of TeliaSonera—Europe’s 5th largest telecom operator—have increased by 3 percent in Q2 supported by Mobility Sweden, Kcell, Ncell and Yoigo in Spain. Its total subscriber base has increased to 159.4 million as of Q2.
Nepal Telecom to shy away from price war
As the cut-throat price war among telephone operators put pressure on its profit growth, the state-owned Nepal Telecom will now stay away from the fight and focus on providing quality service.
NT has been facing mounting criticism over its poor service quality, especially in the mobile service.
NT’s income in the last fiscal year increased by just 2.96 percent to Rs 28.18 billion. It had posted a growth of 22.30 percent to register Rs 27.22 billion in revenue in 2009-10 compared to Rs 22.25 billion in 2008-09.
NT officials said the income growth comparatively came down due to the price war among telecom operators. NT, Ncell and United Telecom Limited have been in a race to cut down call tariffs for the last couple of years. “Our subscriber base increased by 24 percent, but income has not increased accordingly. This is because of the competition in the market to reduce tariff,” said Bishwa Nath Goyal, managing director of NT, at an interaction on NT’s plan and policies for the current fiscal year. “We will improve out network to offer better service instead of reducing call tariff.”
NT’s total number of subscribers increased to 6.78 million as of the last fiscal year—a growth of by 24 percent. It attracted 1.24 million new subscribers in GSM mobile, 101,000 in CDMA and 20,000 subscribers in the landline phone.
Subscribers have long been demanding improvement in NT’s service quality. Goyal also assured to improve call quality. “Subscribers will be able to experience a better quality service within one-and-a-half months, as we are adding some new base transcriber stations (BTS) and also upgrading the existing ones,” he added.
According to NT, it paid Rs 17.49 billion in revenue to the government for the last fiscal year. The revenue amount includes Rs 1.23 billion in royalty fee, Rs 4.54 income tax, Rs 6.45 billion for value added tax and telecommunication service fee. It also gave Rs 5.48 billion as dividends.
For the current fiscal year, with the allocation of Rs 14.47 billion, NT has targeted to post 10.61 percent growth in its total income to Rs 31 billion. It also aims to add 1.65 million subscribers, including 1.23 million in GSM mobile. It is also all set to call a global tender for adding 10 million GSM lines.
Surendra Prasad Thike, deputy managing director and spokesperson for NT, said the revenue target would be achieved through the support of the income generated from value added services and ADSL data service. “The target will prove difficult to achieve through voice service alone amid stiff competition in the market.”
NT’s main targets for the current fiscal year includes improving the mobile service by adding new BTSs and upgrading existing ones, installing an international gateway based on IP technology, distributing phone lines based on NGN technology, increasing value added services and massive expansion of data service in rural areas. “Our plans for the current fiscal year will help the government take broad band in all villages and provide phone service on demand,” said Thike.
NT’s other plans include providing Blackberry service, establishing direct interconnection with Saudi Arabia, Singapore, Australia, Hong Kong and the US and distributing 2 million IP technology based CDMA service. It also plans to start a service that will allow subscribers of post-paid mobile, landline and ADSL to pay bills through recharge cards and introduce electronic pin-less recharge cards worth.
NT has been facing mounting criticism over its poor service quality, especially in the mobile service.
NT’s income in the last fiscal year increased by just 2.96 percent to Rs 28.18 billion. It had posted a growth of 22.30 percent to register Rs 27.22 billion in revenue in 2009-10 compared to Rs 22.25 billion in 2008-09.
NT officials said the income growth comparatively came down due to the price war among telecom operators. NT, Ncell and United Telecom Limited have been in a race to cut down call tariffs for the last couple of years. “Our subscriber base increased by 24 percent, but income has not increased accordingly. This is because of the competition in the market to reduce tariff,” said Bishwa Nath Goyal, managing director of NT, at an interaction on NT’s plan and policies for the current fiscal year. “We will improve out network to offer better service instead of reducing call tariff.”
NT’s total number of subscribers increased to 6.78 million as of the last fiscal year—a growth of by 24 percent. It attracted 1.24 million new subscribers in GSM mobile, 101,000 in CDMA and 20,000 subscribers in the landline phone.
Subscribers have long been demanding improvement in NT’s service quality. Goyal also assured to improve call quality. “Subscribers will be able to experience a better quality service within one-and-a-half months, as we are adding some new base transcriber stations (BTS) and also upgrading the existing ones,” he added.
According to NT, it paid Rs 17.49 billion in revenue to the government for the last fiscal year. The revenue amount includes Rs 1.23 billion in royalty fee, Rs 4.54 income tax, Rs 6.45 billion for value added tax and telecommunication service fee. It also gave Rs 5.48 billion as dividends.
For the current fiscal year, with the allocation of Rs 14.47 billion, NT has targeted to post 10.61 percent growth in its total income to Rs 31 billion. It also aims to add 1.65 million subscribers, including 1.23 million in GSM mobile. It is also all set to call a global tender for adding 10 million GSM lines.
Surendra Prasad Thike, deputy managing director and spokesperson for NT, said the revenue target would be achieved through the support of the income generated from value added services and ADSL data service. “The target will prove difficult to achieve through voice service alone amid stiff competition in the market.”
NT’s main targets for the current fiscal year includes improving the mobile service by adding new BTSs and upgrading existing ones, installing an international gateway based on IP technology, distributing phone lines based on NGN technology, increasing value added services and massive expansion of data service in rural areas. “Our plans for the current fiscal year will help the government take broad band in all villages and provide phone service on demand,” said Thike.
NT’s other plans include providing Blackberry service, establishing direct interconnection with Saudi Arabia, Singapore, Australia, Hong Kong and the US and distributing 2 million IP technology based CDMA service. It also plans to start a service that will allow subscribers of post-paid mobile, landline and ADSL to pay bills through recharge cards and introduce electronic pin-less recharge cards worth.
Broadlink ups internet speed
Wi-Fi serivce provider Broadlink has launched a new package, offering customers unlimited 256 kbps internet package at Rs 899 per month.
The tariff is inclusive of all the taxes. A press statement from Broadlink on Tuesday said all existing users will be automatically upgraded to the 256 kbps unlimited plan.
"The company´s vision is to provide higher speed at very affordable price," Binod Timalsina, CEO of Broadlink, said in the statement.
Broadlink has expanded its network coverage to more than 150 locations in 25 cities across the country. It is planning to expand to Dharan, Inaruwa, Damak and Urlabari by next month. Broadlink has also been offering 3GB plan at 5 Mbps speed for Rs 499 per month.
"Under this plan, customers can use data up 3GB in computer as well as in handheld devices," the statement added.
The tariff is inclusive of all the taxes. A press statement from Broadlink on Tuesday said all existing users will be automatically upgraded to the 256 kbps unlimited plan.
"The company´s vision is to provide higher speed at very affordable price," Binod Timalsina, CEO of Broadlink, said in the statement.
Broadlink has expanded its network coverage to more than 150 locations in 25 cities across the country. It is planning to expand to Dharan, Inaruwa, Damak and Urlabari by next month. Broadlink has also been offering 3GB plan at 5 Mbps speed for Rs 499 per month.
"Under this plan, customers can use data up 3GB in computer as well as in handheld devices," the statement added.
Kumari Mobile Cash bags mBillionth award
Kumari Bank Limited (KBL) has bagged the prestigious mBillionth Award South Asia for its product -- Kumari Mobile Cash. Radhesh Pant, CEO of the bank, received the award under the m-Business & Commerce/Banking category during the mBillionth 2011 South Asia International Summit held in New Delhi, India on Saturday.
The mBillionth Award 2011 was held to honor innovative applications and services excellence in the field of mobile communications.
More than 200 applicants from Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka had participated in the summit.
Of more than 200 applicants, 21 were selected as winners in 11 core categories, with Kumari Bank, the sole winner representing Nepal, reads a press statement.
Issuing the statement, KBL has expressed happiness for winning the award.
“In a very short span of time, the product has helped us break traditional barriers in providing access to finance to the poor and solve inherently burning issues in the Nepalese banking sector,” the bank has said.
Kumari Mobile Cash is the first product that pioneered the “mobile wallet” concept in Nepal. Under this, the bank allows users to store cash balances in their mobile phones and they are then able to deposit and withdraw cash from their mobile phones. They can also use the stored cash value for various purposes such as remittance, bill payments, and airtime recharge.
With more than 70 percent of the population yet to be brought under formal banking system, the bank says it believes the promise echoed by the product, in improving access to sustainable financial resources, is real and achievable.
“The award has served as an outlet for the bank to scale even greater heights in the days to come,” the statement quoted Pant as saying.
Kumari Bank had launched the service over a year ago in partnership with Leapfrog Technology Inc - a Boston-based firm - with a development center in Nepal.
The mBillionth Award 2011 was held to honor innovative applications and services excellence in the field of mobile communications.
More than 200 applicants from Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka had participated in the summit.
Of more than 200 applicants, 21 were selected as winners in 11 core categories, with Kumari Bank, the sole winner representing Nepal, reads a press statement.
Issuing the statement, KBL has expressed happiness for winning the award.
“In a very short span of time, the product has helped us break traditional barriers in providing access to finance to the poor and solve inherently burning issues in the Nepalese banking sector,” the bank has said.
Kumari Mobile Cash is the first product that pioneered the “mobile wallet” concept in Nepal. Under this, the bank allows users to store cash balances in their mobile phones and they are then able to deposit and withdraw cash from their mobile phones. They can also use the stored cash value for various purposes such as remittance, bill payments, and airtime recharge.
With more than 70 percent of the population yet to be brought under formal banking system, the bank says it believes the promise echoed by the product, in improving access to sustainable financial resources, is real and achievable.
“The award has served as an outlet for the bank to scale even greater heights in the days to come,” the statement quoted Pant as saying.
Kumari Bank had launched the service over a year ago in partnership with Leapfrog Technology Inc - a Boston-based firm - with a development center in Nepal.
NRB wants PFL top brass's property frozen
Nepal Rastra Bank (NRB) has requested the government to freeze property of board members and executive chairman of People´s Finance Limited (PFL) that were found involved in banking crime.
"We have already written to the Ministry of Finance (MoF) to instruct the concerned authority to freeze property of PFL´s top brass, including executive chairman Chhabilal Bhusal," said an NRB source.
The central bank has also requested the MoF to seize their passports to prevent them from leaving the country.
NRB tightened grip against Bhusal and top PFL officials, including former CEO Tanka Mani Bhusal, after its special inspection found them guilty in embezzlement of well over Rs 450 million.
Even though the existing Bank and Financial Institution Act (BAFIA) restricts promoters from taking loans from institutions promoted by them, the inspection team had found Bhusal of taking loans from the company by creating fake borrowers.
Majority of loans taken indirectly by Bhusal were real estate loans. As he failed to recoup the investment amid realty slump, it eventually sparked liquidity crunch in the company.
As a result, PFL had suddenly shut down operations on June 7 and its top brass, including Bhusal, went out of contact.
The company under the efforts of Keshav Prasad Bhattarai, deputy chief executive, resumed operations on June 9, but it has not yet managed to repay depositors the full amount.
Records show that the company´s deposits stands at about Rs 890 million, while its loans and advances stand at Rs 1.04 billion. Of the total credit, more than Rs 800 million has gone into real estate and housing.
"We have already written to the Ministry of Finance (MoF) to instruct the concerned authority to freeze property of PFL´s top brass, including executive chairman Chhabilal Bhusal," said an NRB source.
The central bank has also requested the MoF to seize their passports to prevent them from leaving the country.
NRB tightened grip against Bhusal and top PFL officials, including former CEO Tanka Mani Bhusal, after its special inspection found them guilty in embezzlement of well over Rs 450 million.
Even though the existing Bank and Financial Institution Act (BAFIA) restricts promoters from taking loans from institutions promoted by them, the inspection team had found Bhusal of taking loans from the company by creating fake borrowers.
Majority of loans taken indirectly by Bhusal were real estate loans. As he failed to recoup the investment amid realty slump, it eventually sparked liquidity crunch in the company.
As a result, PFL had suddenly shut down operations on June 7 and its top brass, including Bhusal, went out of contact.
The company under the efforts of Keshav Prasad Bhattarai, deputy chief executive, resumed operations on June 9, but it has not yet managed to repay depositors the full amount.
Records show that the company´s deposits stands at about Rs 890 million, while its loans and advances stand at Rs 1.04 billion. Of the total credit, more than Rs 800 million has gone into real estate and housing.
Financial Institutions eye merger to fortify financial position
As capital crunch and low public confidence continue to hurt financial system, more development banks and finance companies have chosen to undergo merger to stave off possible problems.
Nepal Rastra Bank (NRB) officials said Monday they have received notifications from Annapurna Bikash Bank (ABB) and Suryadarshan Finance Company Limited (SFCL), seeking the central bank´s green signal for merger. Kasthamandup Development Bank and Shikar Finance too have applied for merger approval, while Vibor Bikas Bank has already signed a memorandum of understanding (MoU) with Bhajuratna Finance to undergo merger.
Officials told Republica that the central bank was taking their requests positively.
“We expect the NRB to issue ´agreement in principle´ for Kasthamandap and Shikhar merger shortly,” said an NRB official said. He further told Republica that the central bank has also initiated dialogue with the merger committee formed by ABB and SFCL.
“We held talks with the merger committee on Monday to know how they intend to implement the merger deal,” said an NRB source.
Report submitted by the committee to the NRB shows that the paid-up capital of ABB, which targets to be a national-level development bank, stands at Rs 672 million, which is well above the stipulated capital requirement. However, the paid-up capital of SFCL is Rs 100 million -- half of the stipulated capital requirement.
Amid persistent liquidity crunch and problems seen in the financial system, the NRB has been strongly pushing the banks and financial institutions to undergo merger to cut cost and sustain. It even unveiled merger bylaws in early May 2011 and the government too has provided various tax incentives to encourage them for merger.
“Since then, about a dozen BFIs have already approached us for merger approval. This is a good sign,” said the official.
Birgunj Finance and Himchuli Development Bank completed merger formalities about a couple of months ago, forming H & B Development Bank.
Though the number of BFIs approaching for merger is growing, BFIs officials have expressed disappointment over the recently launched monetary policy for not incorporating merger issues.
BFI officials were demanding that the government announce tax exemptions for financial institutions undergoing merger. But the budget for the current fiscal year is silent on their demands.
Nepal Rastra Bank (NRB) officials said Monday they have received notifications from Annapurna Bikash Bank (ABB) and Suryadarshan Finance Company Limited (SFCL), seeking the central bank´s green signal for merger. Kasthamandup Development Bank and Shikar Finance too have applied for merger approval, while Vibor Bikas Bank has already signed a memorandum of understanding (MoU) with Bhajuratna Finance to undergo merger.
Officials told Republica that the central bank was taking their requests positively.
“We expect the NRB to issue ´agreement in principle´ for Kasthamandap and Shikhar merger shortly,” said an NRB official said. He further told Republica that the central bank has also initiated dialogue with the merger committee formed by ABB and SFCL.
“We held talks with the merger committee on Monday to know how they intend to implement the merger deal,” said an NRB source.
Report submitted by the committee to the NRB shows that the paid-up capital of ABB, which targets to be a national-level development bank, stands at Rs 672 million, which is well above the stipulated capital requirement. However, the paid-up capital of SFCL is Rs 100 million -- half of the stipulated capital requirement.
Amid persistent liquidity crunch and problems seen in the financial system, the NRB has been strongly pushing the banks and financial institutions to undergo merger to cut cost and sustain. It even unveiled merger bylaws in early May 2011 and the government too has provided various tax incentives to encourage them for merger.
“Since then, about a dozen BFIs have already approached us for merger approval. This is a good sign,” said the official.
Birgunj Finance and Himchuli Development Bank completed merger formalities about a couple of months ago, forming H & B Development Bank.
Though the number of BFIs approaching for merger is growing, BFIs officials have expressed disappointment over the recently launched monetary policy for not incorporating merger issues.
BFI officials were demanding that the government announce tax exemptions for financial institutions undergoing merger. But the budget for the current fiscal year is silent on their demands.
'2nd Made in Pakistan' Expo concludes
A week-long ´2nd Made in Pakistan´ expo which started on July 19 at Direction Exhibition and Convention Center (DECC) in United World Trade Center concluded on Monday.
The fair has been successful in meeting its objective of introducing Pakistani products to Nepali customers and providing a forum for interaction between the businessmen of the two countries.
Ahmed Barlas, member of the organising committee and proprietor of MAB exports, manufacturer and exporter of wooden handicrafts, said the expo received a good response from the visitors. So, the expo will visit the city every year, he promises.
Barlas informed Republica that in the ´3rd Made in Pakistan´ expo next year, corporate stalls, spices, power plants, batteries and UPS, among others, will be introduced.
Pakistani products ranging from wooden furniture, textile products, ladies´ dresses, leather bags, belts and footwear, jewelry, cosmetics, gemstones, handicrafts made of onyx, wood and brass, to kitchenware and melamine products and even dry fruits were available at the expo. “Among all the products available at the expo, ladies slippers, gems and jewelries, textiles and furniture were the major show stoppers,” said Barlas.
Barlas is planning to open an exclusive showroom of Pakistani wooden handicraft products like sofa set, beds, tables among others that would be the first ever showroom in Nepal for ´Made in Pakistan´ products.
The expo in which more than 80 businessmen from Pakistan participated was able to receive 20,000 footfalls which is double compared to the first expo. According to the organizers, the transaction during the fair has increased 10 to 15 percent compared to last expo.
“Even though we are forced to tag high prices because of other additional charges, we are happy that w got a very good response from the visitors,” said Saria Bano Dastgir, event manager of Aya International. She further added that her company is looking to start up a business in Nepal soon.
Like Dagstir, most of the traders took the expo as a platform to expand their business. “As there are huge numbers of cricket fans in Nepal, we have talked with Cricket Association of Nepal and a number of sports shops like Bhadrakali Sports Center and will soon be expanding our business in Nepal,” said Tanvir Akhtar, marketing manager of A K Traders.
Traders at the fair were very happy at the positive response from the visitors and said that this kind of expo should be organised frequently as it helps them explore market feasibility and enhance trade volume, which is very low at present, between the two countries.
The fair has been successful in meeting its objective of introducing Pakistani products to Nepali customers and providing a forum for interaction between the businessmen of the two countries.
Ahmed Barlas, member of the organising committee and proprietor of MAB exports, manufacturer and exporter of wooden handicrafts, said the expo received a good response from the visitors. So, the expo will visit the city every year, he promises.
Barlas informed Republica that in the ´3rd Made in Pakistan´ expo next year, corporate stalls, spices, power plants, batteries and UPS, among others, will be introduced.
Pakistani products ranging from wooden furniture, textile products, ladies´ dresses, leather bags, belts and footwear, jewelry, cosmetics, gemstones, handicrafts made of onyx, wood and brass, to kitchenware and melamine products and even dry fruits were available at the expo. “Among all the products available at the expo, ladies slippers, gems and jewelries, textiles and furniture were the major show stoppers,” said Barlas.
Barlas is planning to open an exclusive showroom of Pakistani wooden handicraft products like sofa set, beds, tables among others that would be the first ever showroom in Nepal for ´Made in Pakistan´ products.
The expo in which more than 80 businessmen from Pakistan participated was able to receive 20,000 footfalls which is double compared to the first expo. According to the organizers, the transaction during the fair has increased 10 to 15 percent compared to last expo.
“Even though we are forced to tag high prices because of other additional charges, we are happy that w got a very good response from the visitors,” said Saria Bano Dastgir, event manager of Aya International. She further added that her company is looking to start up a business in Nepal soon.
Like Dagstir, most of the traders took the expo as a platform to expand their business. “As there are huge numbers of cricket fans in Nepal, we have talked with Cricket Association of Nepal and a number of sports shops like Bhadrakali Sports Center and will soon be expanding our business in Nepal,” said Tanvir Akhtar, marketing manager of A K Traders.
Traders at the fair were very happy at the positive response from the visitors and said that this kind of expo should be organised frequently as it helps them explore market feasibility and enhance trade volume, which is very low at present, between the two countries.
Power crunch, political interference behind slow industrial growth: Experts
Experts have identified power shortage and political interference as the major reasons behind declining industrial growth rate in the country.
They said increasing consumption compounded with lower productivity and weak supply side has led to higher inflation in the country.
The government has announced to bring inflation down to 7 percent from existing 9.6 percent in the current fiscal year.
Industrial sector growth was limited to just 1.5 percent in fiscal year 2010/11 due to shrinking industrial productions amid deepening power shortage and frequent labor unrest.
“Increasing consumption is not negative for economy if we enhance our production capacity and lessen our import dependency,” said former finance secretary Rameshore Prasad Khanal.
Speaking at an interaction on ´Global Economic and Financial Market Developments and Outlook-Implications for Nepal´ on Monday, Khanal said power outage and politically-instigated labor trouble were the two main reasons behind low productivity in industrial and service sectors. He said commodity price volatility, especially food prices, was harsh on Nepali people even though the national economy remained relatively unaffected during the global financial meltdown.
“Though we escaped unscathed during the global meltdown, we have problems within us. Low production capacity and waning competitive strength is our biggest threat at the moment,” said Khanal.
He also suggested putting in place an internal control system and effective monitoring mechanism in banks and financial institutions to ensure financial sector stability.
Sanjaya Pantha, senior resident representative of International Monetary Fund (IMF) to India and Nepal, said increasing remittance and credit flow from the financial sector on the bank of shrinking manufacturing sector has led to higher inflation.
He also underlined the need for strong supervision and enforcement of prudential regulations to safeguard the health of financial sector.
Professor Madan Dahal said government inefficiency and massive corruption inside the state apparatus were the major reasons behind lower economic growth rate.
They said increasing consumption compounded with lower productivity and weak supply side has led to higher inflation in the country.
The government has announced to bring inflation down to 7 percent from existing 9.6 percent in the current fiscal year.
Industrial sector growth was limited to just 1.5 percent in fiscal year 2010/11 due to shrinking industrial productions amid deepening power shortage and frequent labor unrest.
“Increasing consumption is not negative for economy if we enhance our production capacity and lessen our import dependency,” said former finance secretary Rameshore Prasad Khanal.
Speaking at an interaction on ´Global Economic and Financial Market Developments and Outlook-Implications for Nepal´ on Monday, Khanal said power outage and politically-instigated labor trouble were the two main reasons behind low productivity in industrial and service sectors. He said commodity price volatility, especially food prices, was harsh on Nepali people even though the national economy remained relatively unaffected during the global financial meltdown.
“Though we escaped unscathed during the global meltdown, we have problems within us. Low production capacity and waning competitive strength is our biggest threat at the moment,” said Khanal.
He also suggested putting in place an internal control system and effective monitoring mechanism in banks and financial institutions to ensure financial sector stability.
Sanjaya Pantha, senior resident representative of International Monetary Fund (IMF) to India and Nepal, said increasing remittance and credit flow from the financial sector on the bank of shrinking manufacturing sector has led to higher inflation.
He also underlined the need for strong supervision and enforcement of prudential regulations to safeguard the health of financial sector.
Professor Madan Dahal said government inefficiency and massive corruption inside the state apparatus were the major reasons behind lower economic growth rate.
Theaters, multiplexes enjoy robust growth
Movie theaters in the Valley are enjoying robust in business in recent years thanks to emergence of international standard cinema halls with state of the art sound and projection system. Theater and multiplex owners say the number of moviegoers is increasing by 20 to 30 percent every year.
Multiplex and theater owners say they are witnessing 80 percent occupancy during weekends and over 50 percent occupancy on weekdays. This is a growth of more than 20 percent as compared to three or four years ago.
“Multiplex business is on the boom due to emergence of international standard theaters amid growth in the number of moviegoers,” said Arshad Shahi, facility manager at QFX Cinemas that operates three theaters in the Valley. Shahi said QFX Cinemas is enjoying 80 percent occupancy during weekends and 50 percent on weekdays.
Theater operators say watching movies on holidays has emerged as a popular means of recreation for Valley denizens in recent years. This has led to growth in occupancy during weekends by more than 50 percent, according to theater operators. Late night shows are also turning lucrative for theater owners in recent months. Most of the theater owners say revenue from late night shows contribute more than 30 percent of their total revenue.
“Until six or seven months ago, ticket sale for late night shows was near to nil. Now, most of the late night shows during weekends are houseful,” said Bharat Singh Rajput, operation manager at Big Cinemas. Rajput attributed the increase in ticket sale for late night shows to improved security situation in the country.
Big Cinemas record 60 percent occupancy during weekends and 25 percent on weekdays. It enjoys cent percent occupancy on Wednesday when the multiplex offers tickets at just Rs 149 per person.
Shahi of QFX Cinemas sees the growing craze for 3D cinemas as one of the factors behind growth in ticket sales in multiplexes. “We enjoyed 100 percent occupancy while screening 3D movies like Harry Potter and the Deathly Hollows and Kung Fu Panda,” he added.
The popularity of 3D movies is been so huge that cinema hall operators such as Quest Entertainment -- the operator of QFX Cinemas -- and Gopi Krishna Movies are planning to add 3D theaters. Quest is opening 3D theater in QFX Kumari by the second week of August. Similarly, Gopi Krishna Movies plans to launch 3D theater by the Dashain festival.
“3D technology is the latest craze in movie industry. We are all set to tap this segment by introducing a 3D theater in two months,” said Pradeep Dahal, manager of Gopi Krishna Movies.
Rajput sees footfall at theaters growing at even faster pace in the coming days. “Lack of quality theaters and movies were hindering the growth of this sector. As both these problems have been addressed, there is no reason why footfall at theaters shouldn´t grow,” Rajput added.
Multiplex and theater owners say they are witnessing 80 percent occupancy during weekends and over 50 percent occupancy on weekdays. This is a growth of more than 20 percent as compared to three or four years ago.
“Multiplex business is on the boom due to emergence of international standard theaters amid growth in the number of moviegoers,” said Arshad Shahi, facility manager at QFX Cinemas that operates three theaters in the Valley. Shahi said QFX Cinemas is enjoying 80 percent occupancy during weekends and 50 percent on weekdays.
Theater operators say watching movies on holidays has emerged as a popular means of recreation for Valley denizens in recent years. This has led to growth in occupancy during weekends by more than 50 percent, according to theater operators. Late night shows are also turning lucrative for theater owners in recent months. Most of the theater owners say revenue from late night shows contribute more than 30 percent of their total revenue.
“Until six or seven months ago, ticket sale for late night shows was near to nil. Now, most of the late night shows during weekends are houseful,” said Bharat Singh Rajput, operation manager at Big Cinemas. Rajput attributed the increase in ticket sale for late night shows to improved security situation in the country.
Big Cinemas record 60 percent occupancy during weekends and 25 percent on weekdays. It enjoys cent percent occupancy on Wednesday when the multiplex offers tickets at just Rs 149 per person.
Shahi of QFX Cinemas sees the growing craze for 3D cinemas as one of the factors behind growth in ticket sales in multiplexes. “We enjoyed 100 percent occupancy while screening 3D movies like Harry Potter and the Deathly Hollows and Kung Fu Panda,” he added.
The popularity of 3D movies is been so huge that cinema hall operators such as Quest Entertainment -- the operator of QFX Cinemas -- and Gopi Krishna Movies are planning to add 3D theaters. Quest is opening 3D theater in QFX Kumari by the second week of August. Similarly, Gopi Krishna Movies plans to launch 3D theater by the Dashain festival.
“3D technology is the latest craze in movie industry. We are all set to tap this segment by introducing a 3D theater in two months,” said Pradeep Dahal, manager of Gopi Krishna Movies.
Rajput sees footfall at theaters growing at even faster pace in the coming days. “Lack of quality theaters and movies were hindering the growth of this sector. As both these problems have been addressed, there is no reason why footfall at theaters shouldn´t grow,” Rajput added.
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