The encouraging financial result of financial intermediaries failed to attract investors to the stock market as the benchmark index dropped by 5.62 points, this week.
The financial institutions’ balance sheet — especially commercial banks — recorded higher profits in their fourth quarter of last fiscal year. Even some of the commercial banks have even earned net profit exceeding Rs 1 billion. Some of the banks like Everest Bank, Bank of Kathmandu and Nabil bank already announced handsome dividend for their shareholders too. However, the investors are shying away from share market in spite of fundamentally attractive aspects. Nepse once again plunged below 350 points as the transaction amount continued its decline of last few weeks. The share market kept plunging steadily throughout the week from opening of 352.54 points on Monday morning to closing at 346.92 points on Thursday.
The share market witnessed trading of 584,597 unit shares of 109 companies worth Rs 94.8 million through 4756 transactions in its regular four trading days, as Sunday was the public holiday. The transaction volume this week declined by 26.88 per cent. Class ‘A’ companies’ measuring index — sensitive index — also went down by 1.48 points to close at 85.95 points. Among the total transactions, the trading of class ‘A’ companies consisted of 49.94 per cent amounting to Rs 47.3 million.
This week, only others and hotels subgroup recorded gains in the trading by earning 2.35 points and 0.38 points, respectively. Banking lost 9.19 points while development banks and finance companies went down by 1.57 points and 3.99 points, respectively. Hydropower companies also lost 4.35 points closely followed by insurance companies 4.01 points in the week’s trading. No shares of companies belonging to manufacturing and trading subgroup were traded this week.
Bank of Kathmandu topped the charts in terms of transaction amount with trading worth Rs 13.5 million. In terms of number of transactions, Jyoti Bikas Bank was fore runner with 440 transactions. In terms of numbers of shares traded Taragaoun Regency Hotel topped with 40,100 unit shares trading.
The top five performers of the week are Bank of Kathmandu (Rs 13.54 million), IME Financial Institution (Rs 8.62 million), Nepal Life Insurance (Rs 5.89 million), Nepal Investment Bank (Rs 5.19 million) and Taragaun Regency Hotel (Rs 3.73 million).
Sunday, August 28, 2011
Kist’s new loan offer
Kist Bank has launched new loan scheme targeted to women micro entrepreneurs on the occasion of Teej. The scheme — Kist Chelibeti Laghu Udhdhyamshil Karja will provide loans up to Rs 300,000 to women micro entrepreneurs at the interest rate of 15.15 per cent. The loan will be included as deprived sector lending as directed by the central bank. The bank is hopeful to facilitate about 500 women entrepreneurs under the programme.
Deurali-JantaPharmaceuticals Pvt Ltd (DJPL) new product line
KATHMANDU: Deurali-JantaPharmaceuticals Pvt Ltd (DJPL) added Arogyam division in its factory on Friday. Under the division, the leading pharmaceutical company of the country is producing ointment ranges for skin disease. The company established two decades ago has also achieved ISO 9001 and ISO 14001 for quality products. It has been providing lifesaving medicine in affordable price to the people. According to the company, its products are WHO-GMP standard and people can use them without any hesitation.
Demand for imported fruits growing
Despite a rise in price by Rs 30 to Rs 40 per kg, the demand for imported fruits has increased by at least 10 percent this year. The price of imported fruits has increased in the international market due to their increased consumption, making them expensive in the domestic market as well.
As most of the fruits are imported from countries like Thailand and China, the increase in currency valuation has also contributed to making them expensive in the local market.
According to Baphal Gurung of Bhat Bhateni Supermarket and Departmental Store at Naxal, the price of imported fruits has gone up this year in comparison to last year because the price has increased in the international market with the increase in tax rates and transportation charges.
However, imported fruit and vegetables seem to be doing a brisk business in department stores around town.
The rise in the living standard of people and the higher nutritional value of imported fruits have caused the demand for imported fruits to grow.
Anitm Ranjit, marketing and branding manager of Big Mart at City Centre, says both locals and foreigners buy imported fruits. “Expatriates, five-star hotels and well-off Nepali families are the major buyers. Also, those Nepalis who have already tasted these imported fruits while abroad are adding to the popularity of imported fruits among local people."
It must be because of the rapid sales and the overwhelming responses these imported fruits and vegetables are getting from buyers that department stores seem to have a tough time replenishing the stocks. “We have to replenish the stocks of fruit and vegetables thrice a day because of their rapid sales,” Ranjit said.
Most of the imported fruits come from Thailand while some are from China, India, Japan and Pakistan. Thailand supplies Giant Bangkok guava, cherries, red grapes, kiwi, Bangkok Litchi also known as ram bhutan, and red apple whereas Fuji apple is being imported from Australia and pears come from China. Sweet melon comes from India whereas there is Japanese melon also in the market. Mango comes from Pakistan in off-season.
Different imported fruits cost from Rs 55 to Rs 400 per kg. Green pears are available for Rs 165 per kg, Pakistani apple is available at Rs 350 per kg, watermelon is available at Rs 100 per kg, Chinese apple is available at Rs 155 per kg and Mango is available at Rs 365 a kg.
Price chart
Imported fruits Price per kg
Green pear Rs 165
Pakistani apple Rs 350
watermelon Rs 100
Chinese apple Rs 155
Mango Rs 365
As most of the fruits are imported from countries like Thailand and China, the increase in currency valuation has also contributed to making them expensive in the local market.
According to Baphal Gurung of Bhat Bhateni Supermarket and Departmental Store at Naxal, the price of imported fruits has gone up this year in comparison to last year because the price has increased in the international market with the increase in tax rates and transportation charges.
However, imported fruit and vegetables seem to be doing a brisk business in department stores around town.
The rise in the living standard of people and the higher nutritional value of imported fruits have caused the demand for imported fruits to grow.
Anitm Ranjit, marketing and branding manager of Big Mart at City Centre, says both locals and foreigners buy imported fruits. “Expatriates, five-star hotels and well-off Nepali families are the major buyers. Also, those Nepalis who have already tasted these imported fruits while abroad are adding to the popularity of imported fruits among local people."
It must be because of the rapid sales and the overwhelming responses these imported fruits and vegetables are getting from buyers that department stores seem to have a tough time replenishing the stocks. “We have to replenish the stocks of fruit and vegetables thrice a day because of their rapid sales,” Ranjit said.
Most of the imported fruits come from Thailand while some are from China, India, Japan and Pakistan. Thailand supplies Giant Bangkok guava, cherries, red grapes, kiwi, Bangkok Litchi also known as ram bhutan, and red apple whereas Fuji apple is being imported from Australia and pears come from China. Sweet melon comes from India whereas there is Japanese melon also in the market. Mango comes from Pakistan in off-season.
Different imported fruits cost from Rs 55 to Rs 400 per kg. Green pears are available for Rs 165 per kg, Pakistani apple is available at Rs 350 per kg, watermelon is available at Rs 100 per kg, Chinese apple is available at Rs 155 per kg and Mango is available at Rs 365 a kg.
Price chart
Imported fruits Price per kg
Green pear Rs 165
Pakistani apple Rs 350
watermelon Rs 100
Chinese apple Rs 155
Mango Rs 365
Designer furniture in vogue
Just as middle-class consumers are showing special liking for designer and branded clothes, more Nepalis are exhibiting growing fondness towards designer and branded furniture products.
Consumers are adorning their homes with sofa sets, coffee tables and designer cupboards either crafted by local artisans or imported from countries like Thailand, Malaysia and China among others.
“Designer and branded furniture products have been showing an increase in demand by almost 20 percent every year for last three to four years,” said Baburaja Shakya, supervisor at Craftman Furniture, located at Sitapila.
Shakya said with the changing lifestyle and new dimensions in housing sector, household furniture has undergone a phenomenal evolution. According to Shakya, today, there is a high demand for locally designed furniture in Western countries as well as in the local market.
With quality and design being the sought-after elements lately, furniture sellers are largely depending on designers with a knack of latest furnishing trends.
Furniture manufactures as well as importers such as Craftman, Q and U, S.B. Furniture, Alternative Furniture Industry, and Furniture Land, among others are vying for furniture designers to exploit the local market of domestic and international furniture brands, particularly for their knowledge of design trends and the specific ability to meet the needs of manufacturers and customers.
"Priorities have changed along with functions and this is why the people now go in for designs and shades,” says Ajanta Maharjan, a designer at S.B. Furniture, adding that urban Nepalis are paying as much attention to the interiors of their homes as they do to the exteriors. What is out is the substandard furniture made from unseasoned local hardwood. What is in is glossy furnishings with steel, glass and synthetic wood, among others.
Amid the increasing popularity for designer furniture, migration of trained craftsmen stands as a challenge for local furniture manufacturers to compete with imported designer furniture. Durga Bahadur Shrestha, Chairman of Homely Furniture - the seller of Q and U Chinese furniture - says, "After working for a year or two and learning the skills, most just go abroad. Strikes by the labors are another major challenge.”
Consumers are adorning their homes with sofa sets, coffee tables and designer cupboards either crafted by local artisans or imported from countries like Thailand, Malaysia and China among others.
“Designer and branded furniture products have been showing an increase in demand by almost 20 percent every year for last three to four years,” said Baburaja Shakya, supervisor at Craftman Furniture, located at Sitapila.
Shakya said with the changing lifestyle and new dimensions in housing sector, household furniture has undergone a phenomenal evolution. According to Shakya, today, there is a high demand for locally designed furniture in Western countries as well as in the local market.
With quality and design being the sought-after elements lately, furniture sellers are largely depending on designers with a knack of latest furnishing trends.
Furniture manufactures as well as importers such as Craftman, Q and U, S.B. Furniture, Alternative Furniture Industry, and Furniture Land, among others are vying for furniture designers to exploit the local market of domestic and international furniture brands, particularly for their knowledge of design trends and the specific ability to meet the needs of manufacturers and customers.
"Priorities have changed along with functions and this is why the people now go in for designs and shades,” says Ajanta Maharjan, a designer at S.B. Furniture, adding that urban Nepalis are paying as much attention to the interiors of their homes as they do to the exteriors. What is out is the substandard furniture made from unseasoned local hardwood. What is in is glossy furnishings with steel, glass and synthetic wood, among others.
Amid the increasing popularity for designer furniture, migration of trained craftsmen stands as a challenge for local furniture manufacturers to compete with imported designer furniture. Durga Bahadur Shrestha, Chairman of Homely Furniture - the seller of Q and U Chinese furniture - says, "After working for a year or two and learning the skills, most just go abroad. Strikes by the labors are another major challenge.”
Labor ministry maintains silence on pay hike row
Though labor problem is threatening industrial stability in the country, the concerned authority - the Ministry of Labor and Transport Management (MoLTM) - is still maintaining its silence.
Three major trade unions and Federation of Nepalese Chambers of Commerce and Industry (FNCCI) a few days ago had approached the MoLTM to resolve differences on minimum wage structure for workers. But the ministry is yet to respond.
The trade unions -- All Nepal Trade Union Federation (ANTUF), General Federation of Nepalese Trade Unions (GEFONT) and Nepal Trade Union Congress-Independent (NTUC-I) -- on August 16 had threatened to launch nationwide industrial shutdown if the FNCCI failed to implement the government-fixed pay package and withdraw a case against the pay package from the Supreme Court within 15 days.
“The employers and trade unions had jointly asked the ministry to look into the issue by immediately calling the meeting of Central Labor Advisory Committee about 10 days ago. But the ministry is yet to respond,” an official of FNCCI told Republica.
The employers have lambasted the government from not learning from the closure of Surya Nepal´s garment factory. “We don´t know why the ministry is ignoring the problems facing the industrial sector. We don´t want other factories to face the fate of Surya Nepal,” a senior official of FNCCI´s Employers Council said. He also said majority of industries will be compelled to follow the footsteps of Surya Nepal if labor problems were not resolved at the earliest.
Infuriated at the ministry´s cold response, trade union leaders have said they would move ahead with the industrial strike as planned.
“We had given FNCCI 15 days to implement the government-fixed pay package and withdraw the court case against it. Nine days have already passed; it seems that the government and FNCCI officials aren´t serious about our demands,” said Ramesh Badal, secretary of GEFONT.
“Not only the government, the FNCCI is also equally responsible for this uncertainty.”
Though more than 50 percent of employers have already agreed to implement the government-fixed pay package, Badal said FNCCI officials were still reluctant to formally implement the new pay package.
FNCCI officials said they would implement the new pay package only if the trade union leaders agreed to implement March 24 agreement that among others include provisions like ´No work, no pay´, ´Hire and Fire´ and ´observing industrial peace for four years´.
Trade union officials, however, said they have not signed any agreement that compels workers to abide by the aforesaid provisions.
Meanwhile, Purna Chandra Bhattarai, joint secretary of MoLTM, said the ministry was holding internal discussions to call the meeting of Central Labor Advisory Committee.
“It is the supreme body to deal with labor problems and its meeting can´t be called in haste,” Bhattarai said, adding that the government was for finding permanent solution to the problem.
Three major trade unions and Federation of Nepalese Chambers of Commerce and Industry (FNCCI) a few days ago had approached the MoLTM to resolve differences on minimum wage structure for workers. But the ministry is yet to respond.
The trade unions -- All Nepal Trade Union Federation (ANTUF), General Federation of Nepalese Trade Unions (GEFONT) and Nepal Trade Union Congress-Independent (NTUC-I) -- on August 16 had threatened to launch nationwide industrial shutdown if the FNCCI failed to implement the government-fixed pay package and withdraw a case against the pay package from the Supreme Court within 15 days.
“The employers and trade unions had jointly asked the ministry to look into the issue by immediately calling the meeting of Central Labor Advisory Committee about 10 days ago. But the ministry is yet to respond,” an official of FNCCI told Republica.
The employers have lambasted the government from not learning from the closure of Surya Nepal´s garment factory. “We don´t know why the ministry is ignoring the problems facing the industrial sector. We don´t want other factories to face the fate of Surya Nepal,” a senior official of FNCCI´s Employers Council said. He also said majority of industries will be compelled to follow the footsteps of Surya Nepal if labor problems were not resolved at the earliest.
Infuriated at the ministry´s cold response, trade union leaders have said they would move ahead with the industrial strike as planned.
“We had given FNCCI 15 days to implement the government-fixed pay package and withdraw the court case against it. Nine days have already passed; it seems that the government and FNCCI officials aren´t serious about our demands,” said Ramesh Badal, secretary of GEFONT.
“Not only the government, the FNCCI is also equally responsible for this uncertainty.”
Though more than 50 percent of employers have already agreed to implement the government-fixed pay package, Badal said FNCCI officials were still reluctant to formally implement the new pay package.
FNCCI officials said they would implement the new pay package only if the trade union leaders agreed to implement March 24 agreement that among others include provisions like ´No work, no pay´, ´Hire and Fire´ and ´observing industrial peace for four years´.
Trade union officials, however, said they have not signed any agreement that compels workers to abide by the aforesaid provisions.
Meanwhile, Purna Chandra Bhattarai, joint secretary of MoLTM, said the ministry was holding internal discussions to call the meeting of Central Labor Advisory Committee.
“It is the supreme body to deal with labor problems and its meeting can´t be called in haste,” Bhattarai said, adding that the government was for finding permanent solution to the problem.
Rate of food adulteration high
The rate of food adulteration has increased by 18.3 percent in the fiscal year 2010/11 as compared to 15 percent in the last fiscal. The rise in food adulteration has been revealed in the annual report prepared by Department of Food Technology and Quality Control (DFTQC).
Out of 849 food samples from all over the country tested by the department, 156 were found to be substandard. Of the total substandard products, over 75 products are found in the valley.
While adulteration of edible oil and ghee has been found to be rampant, milk and ghee of substandard quality are said to be common in the market. “The problem of quality is severe in high value products like animal ghee, dairy milk, packaged water and edible oil,” said Pramod Koirala, spokesperson at DFTQC. According to him, one out of five samples collected were found to be of poor quality in the last financial year.
Out of 24 samples of animal ghee collected from various parts of the country, 18 were found to be adulterated. “Animal ghee products are found to be adulterated with vegetable ghee and even synthetic ghee of varying quality,” Koirala told Republica.
Likewise, more than 50 percent of drinking water samples were found to be of substandard quality. Out of 60 samples of drinking water collected, 35 percent were of poor quality, and 40 out of 76 samples of dairy milk examined were found to have low fat content.
“Both bottled and jar drinking water products were sold following inadequate processing and high content of microbial load. Even trusted dairy milk brands have not met three per cent fat content,” added Koirala.
Among edible oils, around 20 percent of various edible oil brands were found to be adulterated. More cases of adulteration were found in mustard oil brands.
Among 156 brands of mustard, soybean and sunflower oil examined, 32 were found to contain mixture of other less expensive oils. Soybean and sunflower oils were found in mustard oil brands.
According to DFTQC, food adulteration has increased from 7.4 percent recorded in the financial year 2003/04 to 15 percent in 2010/11. Koirala added, every year the department has been witnessing new forms of adulteration which can be checked by retaining technicians, strengthening laboratories and increasing investment into the sector.
The Food Act 1967 has provision of slapping a fine of Rs 1,000 to Rs 5,000 or a jail term of six months to a year on those who produce substandard foods. Likewise, if the food item is found to be unhygienic, the maker is slapped a fine of Rs, 5,000 to Rs 10,000 or jailed for a maximum of two years.
Out of 849 food samples from all over the country tested by the department, 156 were found to be substandard. Of the total substandard products, over 75 products are found in the valley.
While adulteration of edible oil and ghee has been found to be rampant, milk and ghee of substandard quality are said to be common in the market. “The problem of quality is severe in high value products like animal ghee, dairy milk, packaged water and edible oil,” said Pramod Koirala, spokesperson at DFTQC. According to him, one out of five samples collected were found to be of poor quality in the last financial year.
Out of 24 samples of animal ghee collected from various parts of the country, 18 were found to be adulterated. “Animal ghee products are found to be adulterated with vegetable ghee and even synthetic ghee of varying quality,” Koirala told Republica.
Likewise, more than 50 percent of drinking water samples were found to be of substandard quality. Out of 60 samples of drinking water collected, 35 percent were of poor quality, and 40 out of 76 samples of dairy milk examined were found to have low fat content.
“Both bottled and jar drinking water products were sold following inadequate processing and high content of microbial load. Even trusted dairy milk brands have not met three per cent fat content,” added Koirala.
Among edible oils, around 20 percent of various edible oil brands were found to be adulterated. More cases of adulteration were found in mustard oil brands.
Among 156 brands of mustard, soybean and sunflower oil examined, 32 were found to contain mixture of other less expensive oils. Soybean and sunflower oils were found in mustard oil brands.
According to DFTQC, food adulteration has increased from 7.4 percent recorded in the financial year 2003/04 to 15 percent in 2010/11. Koirala added, every year the department has been witnessing new forms of adulteration which can be checked by retaining technicians, strengthening laboratories and increasing investment into the sector.
The Food Act 1967 has provision of slapping a fine of Rs 1,000 to Rs 5,000 or a jail term of six months to a year on those who produce substandard foods. Likewise, if the food item is found to be unhygienic, the maker is slapped a fine of Rs, 5,000 to Rs 10,000 or jailed for a maximum of two years.
Volkswagon's new Touareg to hit the market
Pooja International, authorized distributor of Volkswagon vehicles for the market of Nepal, has brought the new Touareg in the market, replacing the older version of Touareg.
After selling more than 20 units of the older Touareg since September 2010, the company decided to bring in the new version in line with the market response.
“The response to Touareg has been very good. It was considered as the vehicle offering value for money in its segment,” said Sarik Bogati, marketing manager at Pooja International. The new Touareg was brought in the July-end but was not launched formally. “We brought it in order to check the market demand for this model. In about a month, we sold three units and customers have booked for four more,” said Bogati.
The company has already placed orders for 14 more units after realizing the market demand. “We are pretty sure we can sell about 25 units of new Touareg in a year,” said Bogati.
New Touareg is available in a single variant. It contains features like six-cylinder V6 engine, parking sensor, touch screen radio system, leather seat, seat heating, electronic adjustable seat, automatic transmission, auto hold function, electronic parking brake, multi-function leather steering wheel along with all the basic functions that are present in the cars of its standard.
The car is going to cost Rs 9.99 million in the market of Nepal. With diesel engine, the car is expected to provide a practical mileage of eight km per liter, according to the company. The car is available in options like white, night blue, silver and brown in Nepali market. “In future, we will import more units of this car,” saod Bogati.
Volkswagon Touareg
Rs 9.99 million
Displacement: 3000 cc
Mileage: 8 km per liter
After selling more than 20 units of the older Touareg since September 2010, the company decided to bring in the new version in line with the market response.
“The response to Touareg has been very good. It was considered as the vehicle offering value for money in its segment,” said Sarik Bogati, marketing manager at Pooja International. The new Touareg was brought in the July-end but was not launched formally. “We brought it in order to check the market demand for this model. In about a month, we sold three units and customers have booked for four more,” said Bogati.
The company has already placed orders for 14 more units after realizing the market demand. “We are pretty sure we can sell about 25 units of new Touareg in a year,” said Bogati.
New Touareg is available in a single variant. It contains features like six-cylinder V6 engine, parking sensor, touch screen radio system, leather seat, seat heating, electronic adjustable seat, automatic transmission, auto hold function, electronic parking brake, multi-function leather steering wheel along with all the basic functions that are present in the cars of its standard.
The car is going to cost Rs 9.99 million in the market of Nepal. With diesel engine, the car is expected to provide a practical mileage of eight km per liter, according to the company. The car is available in options like white, night blue, silver and brown in Nepali market. “In future, we will import more units of this car,” saod Bogati.
Volkswagon Touareg
Rs 9.99 million
Displacement: 3000 cc
Mileage: 8 km per liter
Rupee continues to weaken
Nepali rupee devalued against US dollar over this week as well, rendering imports expensive, but also raising income of exporters and remittances receivers. Gold, on the other hand, became cheaper this week, even though prices rallied to a new high in the initial trading days.
Currency
Nepali rupee weakened by 42 paisa against a US dollar over the week, as the greenback bounced back in India with which currency the rupee is pegged. On Friday, a dollar was valued at Rs 73.91.
Nepal Rastra Bank (NRB) -- country´s monetary authority -- had set the exchange rate of dollar at Rs 73.49 when the market opened this week on Sunday. Although no change in exchange rate was recorded on Monday, rupee shed 6 paisa on Tuesday. It recorded a gain 20 paisa on Wednesday, but as demand for dollar grew strong in India, rupee shed whopping 50 paisa overnight on Thursday. Rupee further slipped by 6 paisa when the market closed this week on Friday.
Rupee weakened by a sharp Rs 1.34 against a euro, but gained 28 paisa against a pound sterling over the week. A euro was exchanged at Rs 106.59, while a pound sterling was valued at Rs 121.09 on Friday.
Bullion
Even though prices jumped sharply and hit new highs in the initial trading days, gold became cheaper by Rs 1,500 per tola (11.664 grams) in the domestic market this week. Dealers, who attributed the price volatility to rise in international investors´ concerns over weak US economy and Europe´s banking troubles, traded gold at Rs 43,640 per 10 grams (Rs 50,900 per tola) on Friday.
Bullion trading had opened this week with gold priced at Rs 44,925 per 10 grams on Sunday. As international investors rushed for safer haven amid dismal US economic outlook and banking problems in Europe, the yellow metal rallied sharply, becoming dearer by Rs 855 per 10 grams on Monday and further Rs 430 per 10 grams on Tuesday, hitting a new high of Rs 53,900 per tola. However, prices suddenly spiraled downwards over the next couple of days from Wednesday, after US initiated talks for fresh relief package and the price of oil slipped on the back of positive political development in Libya. Gold recorded overnight drop of Rs 1,285 per 10 grams on Wednesday and further plummeted by Rs 2,055 per 10 grams on Thursday. However, gold again jumped Rs 770 per ten grams on Friday, when the market closed this week.
The price of silver also dropped Rs 25.50 per 10 grams in the domestic market over the week. Silver was traded at Rs 1,029 per 10 grams when the market closed on Friday.
Currency
Nepali rupee weakened by 42 paisa against a US dollar over the week, as the greenback bounced back in India with which currency the rupee is pegged. On Friday, a dollar was valued at Rs 73.91.
Nepal Rastra Bank (NRB) -- country´s monetary authority -- had set the exchange rate of dollar at Rs 73.49 when the market opened this week on Sunday. Although no change in exchange rate was recorded on Monday, rupee shed 6 paisa on Tuesday. It recorded a gain 20 paisa on Wednesday, but as demand for dollar grew strong in India, rupee shed whopping 50 paisa overnight on Thursday. Rupee further slipped by 6 paisa when the market closed this week on Friday.
Rupee weakened by a sharp Rs 1.34 against a euro, but gained 28 paisa against a pound sterling over the week. A euro was exchanged at Rs 106.59, while a pound sterling was valued at Rs 121.09 on Friday.
Bullion
Even though prices jumped sharply and hit new highs in the initial trading days, gold became cheaper by Rs 1,500 per tola (11.664 grams) in the domestic market this week. Dealers, who attributed the price volatility to rise in international investors´ concerns over weak US economy and Europe´s banking troubles, traded gold at Rs 43,640 per 10 grams (Rs 50,900 per tola) on Friday.
Bullion trading had opened this week with gold priced at Rs 44,925 per 10 grams on Sunday. As international investors rushed for safer haven amid dismal US economic outlook and banking problems in Europe, the yellow metal rallied sharply, becoming dearer by Rs 855 per 10 grams on Monday and further Rs 430 per 10 grams on Tuesday, hitting a new high of Rs 53,900 per tola. However, prices suddenly spiraled downwards over the next couple of days from Wednesday, after US initiated talks for fresh relief package and the price of oil slipped on the back of positive political development in Libya. Gold recorded overnight drop of Rs 1,285 per 10 grams on Wednesday and further plummeted by Rs 2,055 per 10 grams on Thursday. However, gold again jumped Rs 770 per ten grams on Friday, when the market closed this week.
The price of silver also dropped Rs 25.50 per 10 grams in the domestic market over the week. Silver was traded at Rs 1,029 per 10 grams when the market closed on Friday.
Diesel, kerosene dearer by Rs 1.50 per liter
Nepal Oil Corporation (NOC) on Friday raised the prices of diesel and kerosene by Rs 1.50 per liter each. The state-owned petroleum monopolist, however, has left the prices of other petroleum products unchanged.
With the fresh revision in prices, diesel and kerosene will now cost consumers Rs 75 per liter each.
NOC board meeting held early in the morning had taken the decision to hike price with instant effect, mainly as the gap between import and local prices continued to widen.
“Even after the hike, we still continue to suffer a loss of Rs 7.95 per liter of diesel,” said NOC Spokesperson Mukunda Dhungel.
However, NOC will earn a profit of 0.62 paisa per liter on kerosene. The corporation is also earning a profit of Rs 2.94 per liter of petrol, which is retailed at Rs 102 per liter, and about Rs 21 per liter of aviation fuel.
“The number of products in which we are profiting has gone up. But sad story is that the volume of these products is so low, when compared with diesel and cooking gas, that their profit simply fail to make up for the loss these two products inflict,” Dhungel told Republica.
NOC suffers a loss of over Rs 260 on every cylinder (14.2 kg) of liquefied petroleum gas (LPG).
The latest hike, nonetheless, helped NOC cut its loss by over Rs 80 million a month. “It has now come down to Rs 505.3 million for the month of August,” stated Dhungel.
Of the total loss, 66 percent is generated from diesel business, while rest comes from LPG.
With the fresh revision in prices, diesel and kerosene will now cost consumers Rs 75 per liter each.
NOC board meeting held early in the morning had taken the decision to hike price with instant effect, mainly as the gap between import and local prices continued to widen.
“Even after the hike, we still continue to suffer a loss of Rs 7.95 per liter of diesel,” said NOC Spokesperson Mukunda Dhungel.
However, NOC will earn a profit of 0.62 paisa per liter on kerosene. The corporation is also earning a profit of Rs 2.94 per liter of petrol, which is retailed at Rs 102 per liter, and about Rs 21 per liter of aviation fuel.
“The number of products in which we are profiting has gone up. But sad story is that the volume of these products is so low, when compared with diesel and cooking gas, that their profit simply fail to make up for the loss these two products inflict,” Dhungel told Republica.
NOC suffers a loss of over Rs 260 on every cylinder (14.2 kg) of liquefied petroleum gas (LPG).
The latest hike, nonetheless, helped NOC cut its loss by over Rs 80 million a month. “It has now come down to Rs 505.3 million for the month of August,” stated Dhungel.
Of the total loss, 66 percent is generated from diesel business, while rest comes from LPG.
Securities Board of Nepal (Sebon) grants permission for Central Depository System (CDS) service
The Securities Board of Nepal (Sebon) has awarded licenses on Thursday to Central Depository System (CDS) and Clearing Ltd to operate CDS service that is expected to ensure full automation and transparency in the capital market with immediate clearing and settlement of securities.
The capital market regulator has stated that the permission was granted as per the CDS Service Regulations 2011 as the company fulfilled all the requirements of necessary infrastructure to run the service.
However, share analysts said immediate implementation of CDS service is not possible as the company failed to make necessary preparation in appointing Depository Participants (DPs) to work as agents of CDS Company to undertake transactions across the country.
Banks, financial institutions, stock brokers and merchant banks having more than 10 million rupees net worth can act as the DPs for CDS Company.
“Given the sloppy preparation of CDS Company in implementing the CDS system, it is going to prove itself a ´white elephant´ as no company or stock broker has shown interest to work as DPs,” said a source at Nepse.
Nepse is the sole promoter of the CDS Company with total paid-up capital of Rs 300 million.
Though Nepse commenced online transactions of securities a couple of years ago, settlement and clearing have been conducted manually in the absence of fully automated technology.
Under the system, each investor will be assigned an identification number so that no one can misuse other´s identity during share transactions. After the introduction of CDS service, officials expect to expand the scope of country´s security market by matching its standard with SAARC level.
The capital market regulator has stated that the permission was granted as per the CDS Service Regulations 2011 as the company fulfilled all the requirements of necessary infrastructure to run the service.
However, share analysts said immediate implementation of CDS service is not possible as the company failed to make necessary preparation in appointing Depository Participants (DPs) to work as agents of CDS Company to undertake transactions across the country.
Banks, financial institutions, stock brokers and merchant banks having more than 10 million rupees net worth can act as the DPs for CDS Company.
“Given the sloppy preparation of CDS Company in implementing the CDS system, it is going to prove itself a ´white elephant´ as no company or stock broker has shown interest to work as DPs,” said a source at Nepse.
Nepse is the sole promoter of the CDS Company with total paid-up capital of Rs 300 million.
Though Nepse commenced online transactions of securities a couple of years ago, settlement and clearing have been conducted manually in the absence of fully automated technology.
Under the system, each investor will be assigned an identification number so that no one can misuse other´s identity during share transactions. After the introduction of CDS service, officials expect to expand the scope of country´s security market by matching its standard with SAARC level.
Tuesday, August 23, 2011
Homework for trade talks with India, US begins
The government has initiated preparation for trade talks with the country´s two crucial trade partners - Nepal and the US.
“We´ve begun formulating agendas, incorporating pertinent issues for the upcoming bi-lateral talks, and reviewing progress made since the earlier talks with both the countries,” said Toya Narayan Gyawali, joint secretary at the Ministry of Commerce and Supplies (MoCS).
Gyawali said talks on the Trade and Investment Frame Work Agreement (TIFA) with the US has been tentatively scheduled for December, whereas the date for Inter-governmental Committee (IGC) meeting with India is still to be fixed.
Though the meeting of Nepal-US Council on Trade and Investment (NUSCTI) under TIFA was originally scheduled to be held in November, it has been postponed to December due to busy schedule of US trade negotiators. The meeting was last held on April 15 in Washington DC.
TIFA - the forum to discuss and resolve trade and investment issues -- also serves as political and legal commitment to enhance bilateral trade and investment, paving the way for full-fledged bi-lateral free trade and investment agreement.
Deputy Prime Minister and the Minister for Commerce and Supplies Bharat Mohan Adhikari and US trade representative Ron Kirk had signed the TIFA.
Gyawali said the agenda for upcoming NUSTI meeting will largely focus on seeking duty free access for Nepali readymade garment (RMG) in US and luring US investment in Nepal.
The government has already registered a petition at the US Congress for Generalized System of Preference (GSP) for nine Nepali products, including RMG, in the US market.
Nepal RMG industry has been facing a touch time after the US ended duty-free-quota-free access from December 2004.
Similarly, officials at the MoCS are also busy preparing draft agenda for IGC -- the secretary level meeting -- to be held in New Delhi in the near future. A source at the MoCS said Nepal will request the southern neighbor to scrap the recently introduced additional lock system on containers ferrying third country imports via Kolkata port, accreditation of quality standard from Nepali lab, simplification of customs and quarantine test on Nepali goods.
India on the other hand will push for Bilateral Investment Protection Agreement (BIPA) along with preferential treatment for Indian goods as compared to third country imports.
“We are organizing Public Private Dialogue (PPD) on September 12 and 13 to collect suggestions of the private sector for trade negotiations with India and China. Outcomes of the two-day meeting will be crucial for setting agenda for upcoming bilateral talks with both the countries,” added Gyawali.
The meeting is also expected to identify the ways to bring down the country´s widening trade deficit with India and China. Nepal suffered trade deficit of Rs 195.30 billion and Rs 37.67 billion with India and China respectively during the first eleven months of 2010/11.
“We´ve begun formulating agendas, incorporating pertinent issues for the upcoming bi-lateral talks, and reviewing progress made since the earlier talks with both the countries,” said Toya Narayan Gyawali, joint secretary at the Ministry of Commerce and Supplies (MoCS).
Gyawali said talks on the Trade and Investment Frame Work Agreement (TIFA) with the US has been tentatively scheduled for December, whereas the date for Inter-governmental Committee (IGC) meeting with India is still to be fixed.
Though the meeting of Nepal-US Council on Trade and Investment (NUSCTI) under TIFA was originally scheduled to be held in November, it has been postponed to December due to busy schedule of US trade negotiators. The meeting was last held on April 15 in Washington DC.
TIFA - the forum to discuss and resolve trade and investment issues -- also serves as political and legal commitment to enhance bilateral trade and investment, paving the way for full-fledged bi-lateral free trade and investment agreement.
Deputy Prime Minister and the Minister for Commerce and Supplies Bharat Mohan Adhikari and US trade representative Ron Kirk had signed the TIFA.
Gyawali said the agenda for upcoming NUSTI meeting will largely focus on seeking duty free access for Nepali readymade garment (RMG) in US and luring US investment in Nepal.
The government has already registered a petition at the US Congress for Generalized System of Preference (GSP) for nine Nepali products, including RMG, in the US market.
Nepal RMG industry has been facing a touch time after the US ended duty-free-quota-free access from December 2004.
Similarly, officials at the MoCS are also busy preparing draft agenda for IGC -- the secretary level meeting -- to be held in New Delhi in the near future. A source at the MoCS said Nepal will request the southern neighbor to scrap the recently introduced additional lock system on containers ferrying third country imports via Kolkata port, accreditation of quality standard from Nepali lab, simplification of customs and quarantine test on Nepali goods.
India on the other hand will push for Bilateral Investment Protection Agreement (BIPA) along with preferential treatment for Indian goods as compared to third country imports.
“We are organizing Public Private Dialogue (PPD) on September 12 and 13 to collect suggestions of the private sector for trade negotiations with India and China. Outcomes of the two-day meeting will be crucial for setting agenda for upcoming bilateral talks with both the countries,” added Gyawali.
The meeting is also expected to identify the ways to bring down the country´s widening trade deficit with India and China. Nepal suffered trade deficit of Rs 195.30 billion and Rs 37.67 billion with India and China respectively during the first eleven months of 2010/11.
Hydel projects above 10 MW through competitive bidding
The government has announced that licences of hydropower projects above 10 MW will be awarded through competitive bidding process.
This is the first time that the government has decided to call tenders for hydropower projects above 10 MW. Earlier, the government used to provide survey licences to developers on first-come first-served basis.
With the Energy Ministry unveiling ‘Hydroelectricity Licence Management Work Procedure’ on Monday, developers now have to go through a competitive bidding process to acquire survey licences of projects above 10 MW. The rationale behind the new work procedure, according to the ministry, is to make the licensing process easy, transparent and accountable, and discourage the trend of acquiring licence through political contacts.
Now, all applications for hydropower projects above 10 MW lying at the Department of Electricity Development have been automatically scrapped. There were 192 applications for hydropower projects above 10 MW at the department.
The department will call tenders through public notice. It will prepare criteria for the bidding process which will be based on electricity demand, regional balance, and geographical viability of project site, infrastructure facilities and potential export scenario. In order to make the new provision transparent, restructuring of the department will be carried out.
According to the ministry, the department will call for bidding for first priority projects within 90 days of implementation of the work procedure. “The first priority projects will be opened for bidding within next 90 days,” said Energy Minister Gokarna Bista, unveiling the new work procedure here on Monday. According to him, the new licensing provision will have a long-term impact on the country’s hydropower development. The new provision even forces NEA to go through the bidding process. “Even NEA should follow the bidding process, except for the projects that are prioritised by the government as national interest projects and those opened for international funding,” said Bista.
With private developers only capturing rivers instead of developing projects, only 8 MW of additional electricity was generated in the last fiscal year, whereas electricity demand is increasing by 80 MW annually.
The new licensing mechanism has barred government officials associated with the hydropower sector from applying for survey licences or investing in hydropower projects as promoters. If someone is found violating this provision, the survey licence of that project will be scrapped. As per the new provision, promoters of hydropower projects have to submit a self-declaration form stating that none of them hold public posts in the energy sector.
Henceforth, except for entities that are fully or partially owned by the government, no hydropower promoters will be awarded licences for more than three projects.
This is the first time that the government has decided to call tenders for hydropower projects above 10 MW. Earlier, the government used to provide survey licences to developers on first-come first-served basis.
With the Energy Ministry unveiling ‘Hydroelectricity Licence Management Work Procedure’ on Monday, developers now have to go through a competitive bidding process to acquire survey licences of projects above 10 MW. The rationale behind the new work procedure, according to the ministry, is to make the licensing process easy, transparent and accountable, and discourage the trend of acquiring licence through political contacts.
Now, all applications for hydropower projects above 10 MW lying at the Department of Electricity Development have been automatically scrapped. There were 192 applications for hydropower projects above 10 MW at the department.
The department will call tenders through public notice. It will prepare criteria for the bidding process which will be based on electricity demand, regional balance, and geographical viability of project site, infrastructure facilities and potential export scenario. In order to make the new provision transparent, restructuring of the department will be carried out.
According to the ministry, the department will call for bidding for first priority projects within 90 days of implementation of the work procedure. “The first priority projects will be opened for bidding within next 90 days,” said Energy Minister Gokarna Bista, unveiling the new work procedure here on Monday. According to him, the new licensing provision will have a long-term impact on the country’s hydropower development. The new provision even forces NEA to go through the bidding process. “Even NEA should follow the bidding process, except for the projects that are prioritised by the government as national interest projects and those opened for international funding,” said Bista.
With private developers only capturing rivers instead of developing projects, only 8 MW of additional electricity was generated in the last fiscal year, whereas electricity demand is increasing by 80 MW annually.
The new licensing mechanism has barred government officials associated with the hydropower sector from applying for survey licences or investing in hydropower projects as promoters. If someone is found violating this provision, the survey licence of that project will be scrapped. As per the new provision, promoters of hydropower projects have to submit a self-declaration form stating that none of them hold public posts in the energy sector.
Henceforth, except for entities that are fully or partially owned by the government, no hydropower promoters will be awarded licences for more than three projects.
Inter-bank lending on rise
In an indication that the liquidity situation has eased, commercial banks are increasingly providing inter-bank loans to B and C class financial institutions (FIs). Such is the rise that inter-bank loan taken by FIs from commercial banks is double of the transaction among commercial banks, according to Nepal Rastra Bank (NRB).
“About two dozen B and C financial institutions are receiving loans from commercial banks daily, while inter-bank lending is being done only a dozen times among commercial banks,” said Bhaskarmani Gyawali, spokesperson for the central bank. “Such a trend is being seen for the last two months,” he added.
According to NRB officials, B and C class financial institutions have received loans worth around Rs 1 billion from commercial banks over the period.
In the wake troubles in some of B and C class FIs due bad corporate governance and acute liquidity crunch, commercial banks had almost stopped lending to them until two months ago. The central bank then called a meeting of A, B and C banks and financial institutions (BFIs) to ease inter-bank loans. As per the demand of FIs, NRB on June 27, allowed them to get inter-bank loans by putting up good loans and other types of assets (mainly fixed assets) as collateral for a period of six months. As per the earlier provision, inter-bank loans used to mature in a week.
According to NRB Deputy Governor Maha Prasad Adhikari, banks are providing finance to FIs under this new window along with regular means of inter-bank loans.
However, BFI officials said the lending has not been on a large scale. “I don’t have any reporting of finance companies taking inter-bank loans from commercial banks,” said Rajendra Man Shakya, president of Finance Companies’ Association. “What I have is the reporting of finance companies—which sought inter-bank loans under the new window of NRB—that they are yet to receive the loans.” However, the NRB spokesperson stood by his statement. “Given the sensitivity of the issue, many BFIs are not coming open regarding inter-bank lending transactions,” said Gyawali. “It is real that there have been good transactions between commercial banks and financial institutions.”
With commercial banks witnessing strong growth in deposits in recent months, most of them are in a position to lend, according to NRB officials. On the other hand, worsened image of FIs resulted in diversion of deposits to A-class banks.
Many bankers were of the opinion that inter-bank lending between commercial banks and other FIs has happened, but on a small scale. NIC Bank CEO Sashin Joshi said he do not believe that so many FIs received inter-bank loans. “The volume of transactions must be small,” he said.
Similar was the view of Nepal Investment Bank Executive Eirector Prithvi Bahadur Pande. “I don’t think there has been big inter-bank lending with B and C class FIs.”
However, Development Bankers’ Association President Manoj Goyal has a different take. “Given abundant resources with commercial banks, B and C FIs might have received inter-bank loans as they offer higher interest rate,” he said.
“About two dozen B and C financial institutions are receiving loans from commercial banks daily, while inter-bank lending is being done only a dozen times among commercial banks,” said Bhaskarmani Gyawali, spokesperson for the central bank. “Such a trend is being seen for the last two months,” he added.
According to NRB officials, B and C class financial institutions have received loans worth around Rs 1 billion from commercial banks over the period.
In the wake troubles in some of B and C class FIs due bad corporate governance and acute liquidity crunch, commercial banks had almost stopped lending to them until two months ago. The central bank then called a meeting of A, B and C banks and financial institutions (BFIs) to ease inter-bank loans. As per the demand of FIs, NRB on June 27, allowed them to get inter-bank loans by putting up good loans and other types of assets (mainly fixed assets) as collateral for a period of six months. As per the earlier provision, inter-bank loans used to mature in a week.
According to NRB Deputy Governor Maha Prasad Adhikari, banks are providing finance to FIs under this new window along with regular means of inter-bank loans.
However, BFI officials said the lending has not been on a large scale. “I don’t have any reporting of finance companies taking inter-bank loans from commercial banks,” said Rajendra Man Shakya, president of Finance Companies’ Association. “What I have is the reporting of finance companies—which sought inter-bank loans under the new window of NRB—that they are yet to receive the loans.” However, the NRB spokesperson stood by his statement. “Given the sensitivity of the issue, many BFIs are not coming open regarding inter-bank lending transactions,” said Gyawali. “It is real that there have been good transactions between commercial banks and financial institutions.”
With commercial banks witnessing strong growth in deposits in recent months, most of them are in a position to lend, according to NRB officials. On the other hand, worsened image of FIs resulted in diversion of deposits to A-class banks.
Many bankers were of the opinion that inter-bank lending between commercial banks and other FIs has happened, but on a small scale. NIC Bank CEO Sashin Joshi said he do not believe that so many FIs received inter-bank loans. “The volume of transactions must be small,” he said.
Similar was the view of Nepal Investment Bank Executive Eirector Prithvi Bahadur Pande. “I don’t think there has been big inter-bank lending with B and C class FIs.”
However, Development Bankers’ Association President Manoj Goyal has a different take. “Given abundant resources with commercial banks, B and C FIs might have received inter-bank loans as they offer higher interest rate,” he said.
Workers demand resumption of Surya Nepal's garment factory
Workers of the recently closed Surya Nepal´s garment factory have requested the government to do the needful in bringing the factory back into operation.
More than 400 workers of the factory on Tuesday submitted a memorandum to the government, through Morang CDO Suresh Adhikari, requesting it to take necessary initiatives to make the factory operational again.
Stating that labor problem was not the only reason behind the factory´s closure, the workers in the memorandum have urged the government to intervene and bring the factory back into operation.
Surya Nepal had decided to close the garment factory permanently last week, citing lack of favorable working environment due to workers´ protest.
“We´ve been trying our best to bring the factory back into operation,” Adhikari said after receiving the memorandum.
More than 400 workers of the factory on Tuesday submitted a memorandum to the government, through Morang CDO Suresh Adhikari, requesting it to take necessary initiatives to make the factory operational again.
Stating that labor problem was not the only reason behind the factory´s closure, the workers in the memorandum have urged the government to intervene and bring the factory back into operation.
Surya Nepal had decided to close the garment factory permanently last week, citing lack of favorable working environment due to workers´ protest.
“We´ve been trying our best to bring the factory back into operation,” Adhikari said after receiving the memorandum.
Reform process in RBB, ADBL take back seat
The reform process in two state-owned banks—Rastriya Banijya Bank (RBB) and Agriculture Development Bank Limited (ADBL)—is taking a back seat, thanks to increasing trade unionism and political interference.
Daily operations of these banks have been affected for the last few weeks due to strikes called by the trade union affiliated to the Nepali Congress (NC).
The obstruction by the union saw ADBL Chief Executive Officer (CEO) Shayam Singh Pandey resigning from his post. In RBB, newly appointed CEO Shiva Devi Kafle has been barred from entering her office by the staff.
Even after Pandey’s resignation, ADBL trade union has not stopped their agitation which was mainly against recent recruitments in the bank. Employees have padlocked the offices of deputy general manager, directors assigned to nine regional offices and the administration department.
“A total of 1019 employees staged a sit-in on Monday,” said Mukti Nath Pant, president of NC-affiliated Financial Institution Employees’ Union. The union has put forth a 28-point demand. ADBL unions have been protesting against the management decision to recruit new employees instead of making temporary employees permanent. Pandey has maintained that he recruited new employees on merit basis.
Now, in the absence of a CEO, the trade union at ADBL has forwarded their demands to the board of directors. “We have already informed about our demands to the finance ministry and Nepal Rastra Bank (NRB),” said Pant. The RBB’s case is of government’s indecision. Earlier,
the parliamentary Finance and Labour Committee had objected the CEO appointment process, citing inferior selection criteria.
It had asked the Finance Ministry to come up with a new procedure, following which a committee was formed under the Energy Secretary Balananda Poudel to appoint CEO.
However, the government appointed Kafle as stop-gap CEO for the period until another CEO is appointed through a free competition. Unions at RBB objected Kafle’s appointment and have been staging sit-in before CEO’s office every day for three hours.
Kafle said her appointment was just for a stop-gap period and that RBB will soon appoint a new CEO. “We are performing our duty after sit-in concludes,” said Kafle.
On Monday, RBB published a vacancy notice for a CEO with relatively stronger criteria.
In both banks, reforms measures have been carried out with foreign aid. RBB is under the reform process as per the World Bank-sponsored Financial Sector Reform Programme, while Asian Development Bank has aided the reforms in ADBL.
Although the financial sector reform programme will end in December, RBB will still remain as a sick bank with negative net worth of billions of rupees. Due to intense politicisation, reform measures at the bank could not be carried out properly even after bringing in foreign management,” said a senior NRB official.
The central bank has also failed to appoint a CEO in Nepal Bank Limited for the last four
years even after five attempts. Currently, NRB’s own management team is running the oldest bank of the country.
Daily operations of these banks have been affected for the last few weeks due to strikes called by the trade union affiliated to the Nepali Congress (NC).
The obstruction by the union saw ADBL Chief Executive Officer (CEO) Shayam Singh Pandey resigning from his post. In RBB, newly appointed CEO Shiva Devi Kafle has been barred from entering her office by the staff.
Even after Pandey’s resignation, ADBL trade union has not stopped their agitation which was mainly against recent recruitments in the bank. Employees have padlocked the offices of deputy general manager, directors assigned to nine regional offices and the administration department.
“A total of 1019 employees staged a sit-in on Monday,” said Mukti Nath Pant, president of NC-affiliated Financial Institution Employees’ Union. The union has put forth a 28-point demand. ADBL unions have been protesting against the management decision to recruit new employees instead of making temporary employees permanent. Pandey has maintained that he recruited new employees on merit basis.
Now, in the absence of a CEO, the trade union at ADBL has forwarded their demands to the board of directors. “We have already informed about our demands to the finance ministry and Nepal Rastra Bank (NRB),” said Pant. The RBB’s case is of government’s indecision. Earlier,
the parliamentary Finance and Labour Committee had objected the CEO appointment process, citing inferior selection criteria.
It had asked the Finance Ministry to come up with a new procedure, following which a committee was formed under the Energy Secretary Balananda Poudel to appoint CEO.
However, the government appointed Kafle as stop-gap CEO for the period until another CEO is appointed through a free competition. Unions at RBB objected Kafle’s appointment and have been staging sit-in before CEO’s office every day for three hours.
Kafle said her appointment was just for a stop-gap period and that RBB will soon appoint a new CEO. “We are performing our duty after sit-in concludes,” said Kafle.
On Monday, RBB published a vacancy notice for a CEO with relatively stronger criteria.
In both banks, reforms measures have been carried out with foreign aid. RBB is under the reform process as per the World Bank-sponsored Financial Sector Reform Programme, while Asian Development Bank has aided the reforms in ADBL.
Although the financial sector reform programme will end in December, RBB will still remain as a sick bank with negative net worth of billions of rupees. Due to intense politicisation, reform measures at the bank could not be carried out properly even after bringing in foreign management,” said a senior NRB official.
The central bank has also failed to appoint a CEO in Nepal Bank Limited for the last four
years even after five attempts. Currently, NRB’s own management team is running the oldest bank of the country.
National Dairy Development Board (NDDB)’s ED quits amid union pressure
Executive director of the National Dairy Development Board (NDDB) DN Pathak has resigned following intense pressure from the board’s trade union.
The Independent Employees Trade Union of the NDDB has accused Pathak of financial regularities and misappropriation of the board’s authority. The government had appointed Pathak as executive director of the NDDB on December 29, 2008 for a four-year term. According to the union, Pathak and five members of the board had visited England, the Netherlands and France without the board’s approval.
“Pathak had ordered that the expenses incurred during the trip be adjusted in the NDDB account,” said a member of the trade union, adding that he even took action against the account officer who refused to do so.
The union member said that Pathak had tendered his resignation a week ago, however, the Minister for Agriculture and Cooperatives had not approved his resignation due to political influence. On Monday, a group of NDDB employees and trade union members went to the Agriculture Ministry and submitted his resignation letter.
NDDB employees had been agitating since July 17 demanding Pathak’s resignation. He is also president of the Central Region Tanker Transporters Association that had declared a strike from June 22-24 creating fuel shortages in the Kathmandu Valley and surrounding districts. Following pressure from consumer rights activists, Home Secretary Lilamani Paudel had pledged to take action against Pathak.
The Independent Employees Trade Union of the NDDB has accused Pathak of financial regularities and misappropriation of the board’s authority. The government had appointed Pathak as executive director of the NDDB on December 29, 2008 for a four-year term. According to the union, Pathak and five members of the board had visited England, the Netherlands and France without the board’s approval.
“Pathak had ordered that the expenses incurred during the trip be adjusted in the NDDB account,” said a member of the trade union, adding that he even took action against the account officer who refused to do so.
The union member said that Pathak had tendered his resignation a week ago, however, the Minister for Agriculture and Cooperatives had not approved his resignation due to political influence. On Monday, a group of NDDB employees and trade union members went to the Agriculture Ministry and submitted his resignation letter.
NDDB employees had been agitating since July 17 demanding Pathak’s resignation. He is also president of the Central Region Tanker Transporters Association that had declared a strike from June 22-24 creating fuel shortages in the Kathmandu Valley and surrounding districts. Following pressure from consumer rights activists, Home Secretary Lilamani Paudel had pledged to take action against Pathak.
Gas dealers urge govt to increase LPG supply
The Gas Dealer Federation, Nepal (GDFN) on Monday urged the Ministry of Commerce and Supplies (MoCS) to increase the supply of LPG following a cut in deliveries by Nepal Oil Corporation (NOC).
“Gas has been in short supply since the last one and a half months, and a crisis is likely to hit the upcoming festival season,” said the GDFN in a press statement.
The federation has urged the MoCS to improve the supply of LPG within 10 days. According to the GDFN, NOC has reduced distribution of LPG and accused the state-owned oil monopoly of issuing stocks only to bottlers close to its top officials. “The government should distribute LPG to all the bottlers equally,” said GDFN.
NOC had slashed LPG imports to 12,000 tons per month in the first week of July while the monthly requirement stands at 15,000 tons. The reduction in imports, according to NOC, is due to repair and maintenance work at the Barauni refinery of Indian Oil Corporation (IOC), Nepal’ sole supplier of LPG. “We were compelled to cut imports as repair and maintenance is being carried out at IOC’s refinery in Barauni,” said NOC spokesperson Mukunda Dhungel.
According to Dhungel, NOC has been importing 500 tons of LPG daily from Haldiya and Mathura to maintain the supply. However, it hasn’t eased the shortage in the local market. Shipments of LPG from Haldiya and Mathura take at least five-six days to arrive because of the longer distances involved. Dhungel said he was hopeful that supplies would be normalised once the Barauni depot resumes operations.
Amid fears of a possible shortage during the festive season, NOC has pledged to import adequate petroleum products. “There is no need to worry about LPG including other petroleum products during the festivals as NOC has requested the government to arrange funds to import adequate amounts,” said Dhungel.
As consumption increases during the festival season, NOC has sought a loan of Rs 1.50 billion from the government to maintain smooth supplies.
It has written to the MoCS to arrange funds to ensure adequate stocks of
fuel, particularly cooking gas, during the festivals.
The parliamentary Finance and Labour Relations Committee on July 31 had directed the government to maintain sufficient stocks of essential goods to ensure regular supplies and check artificial price hikes during the festival period.
“Gas has been in short supply since the last one and a half months, and a crisis is likely to hit the upcoming festival season,” said the GDFN in a press statement.
The federation has urged the MoCS to improve the supply of LPG within 10 days. According to the GDFN, NOC has reduced distribution of LPG and accused the state-owned oil monopoly of issuing stocks only to bottlers close to its top officials. “The government should distribute LPG to all the bottlers equally,” said GDFN.
NOC had slashed LPG imports to 12,000 tons per month in the first week of July while the monthly requirement stands at 15,000 tons. The reduction in imports, according to NOC, is due to repair and maintenance work at the Barauni refinery of Indian Oil Corporation (IOC), Nepal’ sole supplier of LPG. “We were compelled to cut imports as repair and maintenance is being carried out at IOC’s refinery in Barauni,” said NOC spokesperson Mukunda Dhungel.
According to Dhungel, NOC has been importing 500 tons of LPG daily from Haldiya and Mathura to maintain the supply. However, it hasn’t eased the shortage in the local market. Shipments of LPG from Haldiya and Mathura take at least five-six days to arrive because of the longer distances involved. Dhungel said he was hopeful that supplies would be normalised once the Barauni depot resumes operations.
Amid fears of a possible shortage during the festive season, NOC has pledged to import adequate petroleum products. “There is no need to worry about LPG including other petroleum products during the festivals as NOC has requested the government to arrange funds to import adequate amounts,” said Dhungel.
As consumption increases during the festival season, NOC has sought a loan of Rs 1.50 billion from the government to maintain smooth supplies.
It has written to the MoCS to arrange funds to ensure adequate stocks of
fuel, particularly cooking gas, during the festivals.
The parliamentary Finance and Labour Relations Committee on July 31 had directed the government to maintain sufficient stocks of essential goods to ensure regular supplies and check artificial price hikes during the festival period.
Siddhartha Bank gets Sebon nod to operate mutual fund
The Securities Board of Nepal (Sebon) has granted permission to Siddhartha Bank Ltd to operate mutual fund -- a scheme that paves the way for small investors to invest in the capital market.
The bank will not now set up Siddhartha Mutual Fund as per the Mutual Fund Regulations 2011 that came into effect from September 27, 2010.
Sebon has allowed the bank to mobilize a minimum of Rs 1 billion through mutual fund.
Parishtha Poudel, director of Sebon, said promoters will also have to set up an asset management company as its subsidiary and five-member fund supervisory team before starting the mutual fund scheme.
The subsidiary company must have paid-up capital of Rs 100 million.
“Though two mutual funds are already in operation in the country, Sidhartha Mutual Fund is the first mutual fund getting permission to operate as per the newly introduced regulations,” said Poudel.
Two existing mutual funds -- Nepal Capital Market, promoted by NIDC capital market; and Citizen Investment Trust (CIT) -- were established as per the Securities Act.
Three more commercial banks -- NMB Bank, Nabil Bank and Laxmi Bank -- have also applied at Sebon for the permission to operate mutual fund.
At a time when the securities market has been witnessing long running slowdown, officials hope that the operation of new mutual fund would help provide investment inputs to investors and stabilize the capital market.
In a bid to end long-running slowdown in the capital market, the government through the budget for fiscal year 2011/12 has announced to provide concession to investments coming from institutional investors such as mutual funds.
Since the enforcement of Mutual Fund Regulations in 1996, India has been encouraging the establishment of mutual funds with cent percent exemption of tax in income as well as in return on investment of small investors.
The bank will not now set up Siddhartha Mutual Fund as per the Mutual Fund Regulations 2011 that came into effect from September 27, 2010.
Sebon has allowed the bank to mobilize a minimum of Rs 1 billion through mutual fund.
Parishtha Poudel, director of Sebon, said promoters will also have to set up an asset management company as its subsidiary and five-member fund supervisory team before starting the mutual fund scheme.
The subsidiary company must have paid-up capital of Rs 100 million.
“Though two mutual funds are already in operation in the country, Sidhartha Mutual Fund is the first mutual fund getting permission to operate as per the newly introduced regulations,” said Poudel.
Two existing mutual funds -- Nepal Capital Market, promoted by NIDC capital market; and Citizen Investment Trust (CIT) -- were established as per the Securities Act.
Three more commercial banks -- NMB Bank, Nabil Bank and Laxmi Bank -- have also applied at Sebon for the permission to operate mutual fund.
At a time when the securities market has been witnessing long running slowdown, officials hope that the operation of new mutual fund would help provide investment inputs to investors and stabilize the capital market.
In a bid to end long-running slowdown in the capital market, the government through the budget for fiscal year 2011/12 has announced to provide concession to investments coming from institutional investors such as mutual funds.
Since the enforcement of Mutual Fund Regulations in 1996, India has been encouraging the establishment of mutual funds with cent percent exemption of tax in income as well as in return on investment of small investors.
Ministry seeks more details from NTA
The Ministry of Information and Communications (MoIC) has sought more details from Nepal Telecommunications Authority (NTA) on the planned “unified licencing policy” that the latter has floated.
The ministry says the pre-condition set for rural telecom operators to bring them under the new policy was not clear.
Two weeks ago, the telecom regulator NTA had asked its line ministry, the MoIC, to adopt a unified licencing regime—that will allow operators to provide all types of telecom services—to create a competition in the local telecom market, give equal footing to rural telecom service operators, remove licencing provision for limited mobility service and simplify the licencing system. It has proposed Rs 295 million for obtaining the licence.
Secretary at the MoIC Shreedhar Gautam said the recommendation forwarded by the NTA was not clear, mainly on the pre-conditions set for the operators that are currently offering services in rural areas.
“It has said that rural telecom operators would have to establish ‘exchange or BTS’ in all districts. However, it has failed to mention the number of such exchanges or the BTS to be set up to assure expansion of the telecom service,” Gautam said. Apart from this, the MoIC has also sought additional suggestions from the NTA on why the unified licencing system should be introduced. It has also asked NTA to provide a draft of the notice to be published in the Nepal Gazette for the new provision. The new licencing plan is basically aimed at providing facilities to rural telecom operators—Smart Telecom and STM Telecom.
As per the criteria in the new licence regime, rural telecom operators will have to expand their network in all districts where they are permitted to offer services within the next three years. Smart and STM have received permission to take telecom services in 62 and 52 districts respectively.
“They will have to set up an exchange or BTS in all districts covering at least four Village Development Committees as identified by the District Development Committees for local development,” said Bhesh Raj Kanel, the NTA chairman. He said that after acquiring a unified licence, small operators will also be able to bring in new services like the 3G and 4G.
Under the planned licencing provision, any operator obtaining licence with Rs 295 million and agreeing to pay Rs 20.07 billion as licence renewal fee after 10 years will be able to operate all services.
Nepal Satellite had acquired a basic licence at Rs 2.5 million for five years, which is expiring next year. Similarly, Smart Telecom and STM Telecom had got licences for Rs 100,000 each for five years and 10 years respectively.
However, the NTA’s move has been criticiced by its own officials, telecom experts and MoIC officials. They say the provision was based on the interest of small operators eyeing full mobility GSM mobile service.
UCPN (Maoist) leaders and former communications ministers Krishna Bahadur Mahara and Agni Sapkota had also keenly taken the issue of unified licencing during their tenure. Kanel said Mahara and Sapkota had directed him to better manage licencing provisions and introduce uniformity in licencing to give all operators a level playing field.
Two operators—Nepal Telecom and Ncell—have to pay Rs 20 billion each as licence renewal fees to the government after three years of GSM mobile service. They each had paid Rs 210 million for GSM service. “The unified licencing provision can give operators like Ncell a cause to evade renewal licence fee and take its subscriber base to a new company like Smart Telecom by shutting down the company,” the official said.
The NTA had recommended that the MoIC adopt the unified licencing regime based on clause 23 (2) of the Telecommunication Act 1997.
However, the NTA official said the authority’s top brass had started the process of introducing the new provision in haste and without following the due process of holding consultations with the office itself and with telecom operators.
“NTA might also withdraw the planned licencing provision as the spectrum issue is under consideration of the Public Accounts Committee. Moreover there are so many criticisms on it,” the official added.
Showing losses, Smart and STM have long been wanting to operate full mobility mobile service. They have also been lobbying with the government to allow them a level playing field. However, Nepal Satellite that had acquired the basic telecom service licence as well as the International Long Distance gateway licence is not so keen on the unified licencing as it can expand limited mobility across the country.
Currently, only Ncell and Nepal Telecom are permitted to offer GSM mobile service.
Kanel said that some operators that were already giving full mobility service in the name of limited mobility and those who feared competition from the new system were against the new provision. “This is the best solution to better manage the licencing system and remove limited mobility,” he said.
The recommendation forwarded by NTA is based on the study for development of rural telecom services and expansion. The study was conducted by an NTA consultant Gyanendra Man Baidhya, a telecom expert. Four years ago, NTA had proposed a similar plan.
However, it was rejected by the MoIC, saying that the government’s policy was
to make mobile service a technology based on which only licenced operators are allowed to provide full mobility GSM-based mobile services.
The ministry says the pre-condition set for rural telecom operators to bring them under the new policy was not clear.
Two weeks ago, the telecom regulator NTA had asked its line ministry, the MoIC, to adopt a unified licencing regime—that will allow operators to provide all types of telecom services—to create a competition in the local telecom market, give equal footing to rural telecom service operators, remove licencing provision for limited mobility service and simplify the licencing system. It has proposed Rs 295 million for obtaining the licence.
Secretary at the MoIC Shreedhar Gautam said the recommendation forwarded by the NTA was not clear, mainly on the pre-conditions set for the operators that are currently offering services in rural areas.
“It has said that rural telecom operators would have to establish ‘exchange or BTS’ in all districts. However, it has failed to mention the number of such exchanges or the BTS to be set up to assure expansion of the telecom service,” Gautam said. Apart from this, the MoIC has also sought additional suggestions from the NTA on why the unified licencing system should be introduced. It has also asked NTA to provide a draft of the notice to be published in the Nepal Gazette for the new provision. The new licencing plan is basically aimed at providing facilities to rural telecom operators—Smart Telecom and STM Telecom.
As per the criteria in the new licence regime, rural telecom operators will have to expand their network in all districts where they are permitted to offer services within the next three years. Smart and STM have received permission to take telecom services in 62 and 52 districts respectively.
“They will have to set up an exchange or BTS in all districts covering at least four Village Development Committees as identified by the District Development Committees for local development,” said Bhesh Raj Kanel, the NTA chairman. He said that after acquiring a unified licence, small operators will also be able to bring in new services like the 3G and 4G.
Under the planned licencing provision, any operator obtaining licence with Rs 295 million and agreeing to pay Rs 20.07 billion as licence renewal fee after 10 years will be able to operate all services.
Nepal Satellite had acquired a basic licence at Rs 2.5 million for five years, which is expiring next year. Similarly, Smart Telecom and STM Telecom had got licences for Rs 100,000 each for five years and 10 years respectively.
However, the NTA’s move has been criticiced by its own officials, telecom experts and MoIC officials. They say the provision was based on the interest of small operators eyeing full mobility GSM mobile service.
UCPN (Maoist) leaders and former communications ministers Krishna Bahadur Mahara and Agni Sapkota had also keenly taken the issue of unified licencing during their tenure. Kanel said Mahara and Sapkota had directed him to better manage licencing provisions and introduce uniformity in licencing to give all operators a level playing field.
Two operators—Nepal Telecom and Ncell—have to pay Rs 20 billion each as licence renewal fees to the government after three years of GSM mobile service. They each had paid Rs 210 million for GSM service. “The unified licencing provision can give operators like Ncell a cause to evade renewal licence fee and take its subscriber base to a new company like Smart Telecom by shutting down the company,” the official said.
The NTA had recommended that the MoIC adopt the unified licencing regime based on clause 23 (2) of the Telecommunication Act 1997.
However, the NTA official said the authority’s top brass had started the process of introducing the new provision in haste and without following the due process of holding consultations with the office itself and with telecom operators.
“NTA might also withdraw the planned licencing provision as the spectrum issue is under consideration of the Public Accounts Committee. Moreover there are so many criticisms on it,” the official added.
Showing losses, Smart and STM have long been wanting to operate full mobility mobile service. They have also been lobbying with the government to allow them a level playing field. However, Nepal Satellite that had acquired the basic telecom service licence as well as the International Long Distance gateway licence is not so keen on the unified licencing as it can expand limited mobility across the country.
Currently, only Ncell and Nepal Telecom are permitted to offer GSM mobile service.
Kanel said that some operators that were already giving full mobility service in the name of limited mobility and those who feared competition from the new system were against the new provision. “This is the best solution to better manage the licencing system and remove limited mobility,” he said.
The recommendation forwarded by NTA is based on the study for development of rural telecom services and expansion. The study was conducted by an NTA consultant Gyanendra Man Baidhya, a telecom expert. Four years ago, NTA had proposed a similar plan.
However, it was rejected by the MoIC, saying that the government’s policy was
to make mobile service a technology based on which only licenced operators are allowed to provide full mobility GSM-based mobile services.
Real estate expo from Wednesday
Nepal Land and Housing Developers´ Association (NHLDA) is organizing ´Panchakanya Real Estate Expo 2011´ from August 25-28 at Bhrikuti Mandap Exhibition Hall.
The second edition of the expo will feature a total of 180 exhibitors, including those from developing sectors, land planners, builders, service providers, Vastu experts, interior designers and fabricators, decorators, investors, manufactures and suppliers of construction materials and electrical equipment among others.
Speaking at a press meet on Tuesday, Minman Shrestha, general secretary of NHLDA, said the expo will provide a platform for people to get information about recent developments in real estate sector and know about the facilities being provided by housing companies and developers. Visitors can also get experts´ opinion on their queries related to housing and real estate sector.
“The expo will also help the exhibitors strengthen their brand and enhance sales by bringing together prospective buyers, developers, agents working in the field, service providers and various experts under a roof,” the association said in a press release.
Officials of the association said they were hopeful that the expo will facilitate face-to-face meetings with customers which will ultimately result in sales growth as well as help make real estate business organized.
Direction Nepal is managing the four-day event. They event is expected to draw more than 50,000 visitors. Entrance ticket for the event has been fixed at Rs 25 per person.
The second edition of the expo will feature a total of 180 exhibitors, including those from developing sectors, land planners, builders, service providers, Vastu experts, interior designers and fabricators, decorators, investors, manufactures and suppliers of construction materials and electrical equipment among others.
Speaking at a press meet on Tuesday, Minman Shrestha, general secretary of NHLDA, said the expo will provide a platform for people to get information about recent developments in real estate sector and know about the facilities being provided by housing companies and developers. Visitors can also get experts´ opinion on their queries related to housing and real estate sector.
“The expo will also help the exhibitors strengthen their brand and enhance sales by bringing together prospective buyers, developers, agents working in the field, service providers and various experts under a roof,” the association said in a press release.
Officials of the association said they were hopeful that the expo will facilitate face-to-face meetings with customers which will ultimately result in sales growth as well as help make real estate business organized.
Direction Nepal is managing the four-day event. They event is expected to draw more than 50,000 visitors. Entrance ticket for the event has been fixed at Rs 25 per person.
Market of Chinese cars growing slowly but steadily
Although Chinese cars are being introduced in the market in a big way, they are still struggling to make their presence felt. If the data of Department of Transport Management (DoTM) is anything to go by, the market share of Chinese vehicles in Nepal stood just at around three percent in the last fiscal year.
But the dealers, who are selling Chinese cars in the market, are upbeat about the good performance of Chinese cars in the coming days.
“Japanese and Korean cars also passed though similar situation when they were introduced here. The market of Chinese cars is growing slowly throughout the world. Ten years down the line, Chinese cars will stand as one of the major players in the market,” said Prabal Saakha, managing director of Saakha and Universal Automobile - the authorized distributor of Geely cars for Nepal.
Chinese companies have started exporting their cars in different parts of the world and it is building trust gradually. “Building trust is not easy and won´t happen overnight,” Saakha added.
Constant Business Group - the dealer of Zyote and UFO cars for Nepal -- is also experiencing better response toward Chinese cars in Nepal. “The scenario would have been lot better had the market situation not worsened in the last fiscal year,” said Rajesh Kaji Shrestha, managing director of Constant Business Group.
Shrestha echoed Saakha and said he sees Chinese and Indian cars leading the passenger cars segment after a decade.
Dealers claim that the quality of Chinese vehicles is improving tremendously. “Earlier, Chinese car manufacturer had short term strategy and they considered sales as the final step of their business,” Saakha said, adding: “Now, they are focusing on after sales services, spare parts and resale value as well. This will make positive impact in the market sooner or later.”
Many international brands are shifting their production facilities to China because of cheap labor cost. The government is also encouraging international business houses to open their factories in China by offering them different incentives. The Asian economic powerhouse has already developed itself as a business centre of the world.
“Majority of Nepalis are not economically comfortable due to which they look for cheaper products. Nobody else can offer cheaper products than our neighboring countries,” said Saakha, expressing hope that Chinese cars will be popular here in the coming days due to their competitive advantage in terms of prices.
Until a few years ago, dealers of Chinese cars used to have hard times convincing customer to buy their products. “This scenario has changed drastically. We don´t have to answer so many questions or provide unnecessary guarantees anymore,” said Shrestha.
But the dealers, who are selling Chinese cars in the market, are upbeat about the good performance of Chinese cars in the coming days.
“Japanese and Korean cars also passed though similar situation when they were introduced here. The market of Chinese cars is growing slowly throughout the world. Ten years down the line, Chinese cars will stand as one of the major players in the market,” said Prabal Saakha, managing director of Saakha and Universal Automobile - the authorized distributor of Geely cars for Nepal.
Chinese companies have started exporting their cars in different parts of the world and it is building trust gradually. “Building trust is not easy and won´t happen overnight,” Saakha added.
Constant Business Group - the dealer of Zyote and UFO cars for Nepal -- is also experiencing better response toward Chinese cars in Nepal. “The scenario would have been lot better had the market situation not worsened in the last fiscal year,” said Rajesh Kaji Shrestha, managing director of Constant Business Group.
Shrestha echoed Saakha and said he sees Chinese and Indian cars leading the passenger cars segment after a decade.
Dealers claim that the quality of Chinese vehicles is improving tremendously. “Earlier, Chinese car manufacturer had short term strategy and they considered sales as the final step of their business,” Saakha said, adding: “Now, they are focusing on after sales services, spare parts and resale value as well. This will make positive impact in the market sooner or later.”
Many international brands are shifting their production facilities to China because of cheap labor cost. The government is also encouraging international business houses to open their factories in China by offering them different incentives. The Asian economic powerhouse has already developed itself as a business centre of the world.
“Majority of Nepalis are not economically comfortable due to which they look for cheaper products. Nobody else can offer cheaper products than our neighboring countries,” said Saakha, expressing hope that Chinese cars will be popular here in the coming days due to their competitive advantage in terms of prices.
Until a few years ago, dealers of Chinese cars used to have hard times convincing customer to buy their products. “This scenario has changed drastically. We don´t have to answer so many questions or provide unnecessary guarantees anymore,” said Shrestha.
Ad industry logs 20% rise in annual turnover
Despite lengthy power cuts and economic slowdown, annual turnover of Nepali advertising industry for the fiscal year 2010/11 increased by more than 20 percent mainly due to a marked proliferation in media, increment in the number of small trading centers being involved in advertisement, increment in rates in media houses and localized campaigns for multinational brands.
According to Advertising Association of Nepal (AAN), annual turnover of Nepali advertising industry increased to Rs 4.3 billion in 2010/11, up from Rs 3.5 billion recorded in 2009/10.
This year, AAN has published advertising turnover of five different segments -- Print, TV, Radio, Digital Theater Advertising (DTA) and Others. This is the first year that AAN has made annual turnover of DTA segment available. Others category includes billboard, posters, banners, wall painting and event-related advertising. Besides, AAN has also increased the parameter for measuring business volume in case of all the segments.
Print segment bagged the major share of advertising revenue during 2010/11, followed by TV, Radio and Others segments. “Turnover from print media increased massively in the past fiscal year mainly due to lengthy power cuts and inclusion of advertisements published different magazines under print segment,” said Raj Kumar Bhattarai, president of AAN. Bhattarai, who is also the managing director of Spectrum Advertising, said slow growth was seen in other media during the period due to strict government regulations on advertisement of alcohol and tobacco products.
Bhattarai was referring to the Supreme Court´s decision to ban billboard and outdoor advertising of alcohol and tobacco products from July last year.
“Advertising turnover increased in the past fiscal year mainly because trading business flourished, despite slowdown in manufacturing business,” said Nirmal Raj Paudel CEO of Welcome Advertising and Marketing. Though only a few local brands were launched during the period, Paudel said more multi-national companies launched their products in the market, which helped keep the industry rolling.
Angad Basnet Chettri, creative director of Outreach Nepal, said advertising turnover increased due to growing faith of clients in advertisement and creativity. “If we follow the trend closely, we see lots of localized campaigns for multinational brands in a very creative manner. This really contributed a lot for the growth of the industry,” opined Chettri.
According to Advertising Association of Nepal (AAN), annual turnover of Nepali advertising industry increased to Rs 4.3 billion in 2010/11, up from Rs 3.5 billion recorded in 2009/10.
This year, AAN has published advertising turnover of five different segments -- Print, TV, Radio, Digital Theater Advertising (DTA) and Others. This is the first year that AAN has made annual turnover of DTA segment available. Others category includes billboard, posters, banners, wall painting and event-related advertising. Besides, AAN has also increased the parameter for measuring business volume in case of all the segments.
Print segment bagged the major share of advertising revenue during 2010/11, followed by TV, Radio and Others segments. “Turnover from print media increased massively in the past fiscal year mainly due to lengthy power cuts and inclusion of advertisements published different magazines under print segment,” said Raj Kumar Bhattarai, president of AAN. Bhattarai, who is also the managing director of Spectrum Advertising, said slow growth was seen in other media during the period due to strict government regulations on advertisement of alcohol and tobacco products.
Bhattarai was referring to the Supreme Court´s decision to ban billboard and outdoor advertising of alcohol and tobacco products from July last year.
“Advertising turnover increased in the past fiscal year mainly because trading business flourished, despite slowdown in manufacturing business,” said Nirmal Raj Paudel CEO of Welcome Advertising and Marketing. Though only a few local brands were launched during the period, Paudel said more multi-national companies launched their products in the market, which helped keep the industry rolling.
Angad Basnet Chettri, creative director of Outreach Nepal, said advertising turnover increased due to growing faith of clients in advertisement and creativity. “If we follow the trend closely, we see lots of localized campaigns for multinational brands in a very creative manner. This really contributed a lot for the growth of the industry,” opined Chettri.
Ncell brings scheme
Ncell has launched a scheme for the potential subscribers of Bagmati zones. Subscribers can get an additional bonus of Rs 30 on every purchase of SIM cards under Sajilo and Nepal 1 tariff. The new scheme will remain effective for 30 days, said Ncell that has launched the scheme to get with easily of mobile utilisation and get more information of Ncell network. “It believes more and more people should avail the facility at affordable rates.” Apart from that customers from Bagmati region will get a SIM card under Nepal 1 tariff on every purchase of ZTE monochrome handset costing Rs 999 and colour handset of Rs 1,999 apart from Rs 100 worth of talk time as bonus for six months.
United Finance Nari accounts
United Finance has offered two special accounts to women on the occasion of Teej — a festival for Hindu women. The finance company is offering 10 per cent interest in Nava Nari saving account opened till September 17 and 14 per cent interest in Nava Nari fixed deposit account. It is also providing surprise gifts to account openers.
CNI forms film forum
Confederation of Nepalese Industries (CNI) has formed a Film Industry Development and Promotion Forum under the leadership of Nir Shah for the development of film and music industry. According to CNI, other members of the forum are Bijaya Basnet and Bimal Poudel from producers, Mohan Saraf and Hari Baral from theater owners and distributors, Chetan Sapakota from musicians, and Phulman Bal from critics. They will work to make film industry a respectable industry through advocacy to include it in national industry policy.
Real Juice Scheme winner
Real announced its highes correct SMS sender as Homnath Dahal of Ilam under its ‘Real Quality Tour Contest’. Dahal has won two-night-and-three-day Quality Tour to Real Factory in Simra and Pokhara. According to a press note, there are ten more weekly prizes and one super bumper prize for two couples to Singapore.
Himalayan Bank Limited gets new software
Himalayan Bank has launched its new internet banking module Himal@net with two factor authentication that has a security device. The bank is the first financial institution in the country to provide internet banking with an Active Identity Security Device, it said, adding that customers subscribing to himal@net can avail inquiry features like cheque status, loans and advances, bank statement, comprehensive account summary, balance statement and transaction details.
Everest Bank Limited's new branch
FNCCI president Suraj Vaidya and chairman of the bank BK Shrestha inaugurated Everest Bank Ltd’s (EBL) 44th branch and 46th ATM at Bagbazar, Kathmandu on Monday. The bank is rendering professionalised and efficient banking services through widest domestic network of 44 branches, 46 ATMs, 21 extension counters and many correspondents across the globe. Deriving strength from its joint-venture partner (Punjab National Bank, India), it has been steadily growing in its size and operations and has established itself as one of the leading private sector banks.
Tourist arrivals by land to increase by 20pc
Nepal Tourism Year 2011 Committee has expected around 20 per cent increment in the tourist arrivals by land.
“Last year around 500,000 Indian tourists visited Nepal by land and we are expecting an increment of 15 per cent to 20 per cent this year,” said a member of NTY 2011 working committee Dhurba Narayan Shrestha.
According to him, other than Indian tourists from Bhairahawa about 90,000 foreigners also entered Nepal till mid July. “Other than Indian tourist we also have Srilankan, Chinese, Japanese, Thai visitors, who visit Nepal mostly through the Bhairahawa point specially to visit Lumbini.”
“The tourist arrivals to Nepal by land without visa like Indian tourist is calculated according to number of tourist coaches and private vehicles entering through border,” he said, adding that the main reason behind increase in the number of tourist arrivals by land is a safe and secure environment for them. After a month we are also going to start one window system at the border points which will not only keep the record the number of tourists arriving by road but also allow special sticker for the tourist vehicles, he informed.
The NTY 2011 has targeted 300,000 Indian tourists this year.
“Now we have started promotion programmes in Gorakhpur, Lucknow, Raxual, Sitamadi and Sunauli and other places at the Nepal-India border,” he said.
The NTY 2011 the committee has done feasibility study of bordering cities. The study has been done at 10 different border points of Nepal, Shrestha said, adding that to facilitate the visitors Nepal Tourism Board along with private sector will develop a one window system at the border area. “We are planning to facilitate our visitors at border with Immigration, Custom, Transportation Office, Food court, Nepali Handicraft Exhibition Centre and other facilities required for tourist, when they reach the border points.”
“Last year around 500,000 Indian tourists visited Nepal by land and we are expecting an increment of 15 per cent to 20 per cent this year,” said a member of NTY 2011 working committee Dhurba Narayan Shrestha.
According to him, other than Indian tourists from Bhairahawa about 90,000 foreigners also entered Nepal till mid July. “Other than Indian tourist we also have Srilankan, Chinese, Japanese, Thai visitors, who visit Nepal mostly through the Bhairahawa point specially to visit Lumbini.”
“The tourist arrivals to Nepal by land without visa like Indian tourist is calculated according to number of tourist coaches and private vehicles entering through border,” he said, adding that the main reason behind increase in the number of tourist arrivals by land is a safe and secure environment for them. After a month we are also going to start one window system at the border points which will not only keep the record the number of tourists arriving by road but also allow special sticker for the tourist vehicles, he informed.
The NTY 2011 has targeted 300,000 Indian tourists this year.
“Now we have started promotion programmes in Gorakhpur, Lucknow, Raxual, Sitamadi and Sunauli and other places at the Nepal-India border,” he said.
The NTY 2011 the committee has done feasibility study of bordering cities. The study has been done at 10 different border points of Nepal, Shrestha said, adding that to facilitate the visitors Nepal Tourism Board along with private sector will develop a one window system at the border area. “We are planning to facilitate our visitors at border with Immigration, Custom, Transportation Office, Food court, Nepali Handicraft Exhibition Centre and other facilities required for tourist, when they reach the border points.”
Panchakanya Group launches CPVC pipes
Panchakanya Group today launched CPVC pipes and fittings with technology support from Sekisui-Japan.
The latest system has three significant involvement that makes the product achieve a service life beyond fifty years, the company claimed, adding tha these are world renowned precision Japanese compound, worldwide approved CPVC solvent cement.
The company also said that it is a safe long lasting and cost effective solution for hot and cold water as it claims to be suitable for all plumbing and potable water application.
Panchakanya CPVC is designed for hot and cold water distribution in residential, commercial, and public projects, high and low rise buildings, corporate houses, academic institutions and solar heater applications. It has established itself as one of the leading industrial and trading houses associated with and involved in many commercial activities including international trade, domestic supply,and many more.
The latest system has three significant involvement that makes the product achieve a service life beyond fifty years, the company claimed, adding tha these are world renowned precision Japanese compound, worldwide approved CPVC solvent cement.
The company also said that it is a safe long lasting and cost effective solution for hot and cold water as it claims to be suitable for all plumbing and potable water application.
Panchakanya CPVC is designed for hot and cold water distribution in residential, commercial, and public projects, high and low rise buildings, corporate houses, academic institutions and solar heater applications. It has established itself as one of the leading industrial and trading houses associated with and involved in many commercial activities including international trade, domestic supply,and many more.
Syakar brings Philips AirFryer
Syakar Company Ltd — the authorised distributor of Philips range of products for Nepal — has introduced another revolutionary household product Airfryer in the market.
“With its arrival, now food can be cooked without oil as AirFryer combines fast-circulating hot air with a grill element to help fry the food with air instead of oil,” the company said, claiming that it is definitely going to be an addition to the kitchen and upgrade people’s healthy lifestyle. Syakar Company will be providing demonstration in Philips Showroom, Kantipanth from August 23 for ease of new customers.
Philips Airfryer replaces the need for oil with air without compromising the satisfying taste of one favourite food. “Using Rapid Air technology, combining circulating hot air and heat from the grill, food is cooked at a high temperature of 200°C with less than 80 per cent fat content,” it said, adding that the AirFryer emits hot air from the top which is circulated rapidly and evenly within the device to cook the food.
At a temperature of up to 200°C, the air moves very fast and forcefully within the device, adding a perfect crisp to the exterior of foods being cooked. It is patented Rapid Air technology is a unique technology.
“With its arrival, now food can be cooked without oil as AirFryer combines fast-circulating hot air with a grill element to help fry the food with air instead of oil,” the company said, claiming that it is definitely going to be an addition to the kitchen and upgrade people’s healthy lifestyle. Syakar Company will be providing demonstration in Philips Showroom, Kantipanth from August 23 for ease of new customers.
Philips Airfryer replaces the need for oil with air without compromising the satisfying taste of one favourite food. “Using Rapid Air technology, combining circulating hot air and heat from the grill, food is cooked at a high temperature of 200°C with less than 80 per cent fat content,” it said, adding that the AirFryer emits hot air from the top which is circulated rapidly and evenly within the device to cook the food.
At a temperature of up to 200°C, the air moves very fast and forcefully within the device, adding a perfect crisp to the exterior of foods being cooked. It is patented Rapid Air technology is a unique technology.
Call to decentralise Office of Company Registrar
Economic and Labour Relation Committee under Legislature Parliament today directed the government to start decentralisation process of Office of the Company Registrar. The government in 1993 had established the Office of the Company Registrar to regulate activities related to the company set up and other administrative works. “The decentralisation of the office is a must to provide facility to company operators in various parts of country,” lawmaker and committee member Diwakar Golchha said.
Entrepreneurs at the local level can easily register their company and can take other benefits, according to the committee.
Similarly, lawmakers also asked the government to start the homework for the amendment of Company Act 2006 according to the need of time. “The Company Act should create entrepreneur-friendly, investment-friendly and industry-friendly environment,” the committee decision said.
Lawmakers also demanded to reduce the existing provision of punishment from Company Act 2006. “There are some provisions that are contradictory with other existing law including Income Tax Act and they should be amended,” the lawmakers said.
Company Act should incorporate wide range of issues related to the company sector, committee member Bijay Paudel said, adding that it should introduce the provision of establishing many companies under a brand name. Currently, there is no provision of registering a group of companies, he said, asking the government to bring such provision.
Meanwhile, Public Accounts Committee under Legislature parliament today discussed on Janakpur Cigarette Factory “The committee interrogated with the factory officials about the detailed financial situation, secretary at the committee Som Bahadur Thapa said, adding that the committee will grill them again during the next meeting. There are around 900 staff in factory.
Entrepreneurs at the local level can easily register their company and can take other benefits, according to the committee.
Similarly, lawmakers also asked the government to start the homework for the amendment of Company Act 2006 according to the need of time. “The Company Act should create entrepreneur-friendly, investment-friendly and industry-friendly environment,” the committee decision said.
Lawmakers also demanded to reduce the existing provision of punishment from Company Act 2006. “There are some provisions that are contradictory with other existing law including Income Tax Act and they should be amended,” the lawmakers said.
Company Act should incorporate wide range of issues related to the company sector, committee member Bijay Paudel said, adding that it should introduce the provision of establishing many companies under a brand name. Currently, there is no provision of registering a group of companies, he said, asking the government to bring such provision.
Meanwhile, Public Accounts Committee under Legislature parliament today discussed on Janakpur Cigarette Factory “The committee interrogated with the factory officials about the detailed financial situation, secretary at the committee Som Bahadur Thapa said, adding that the committee will grill them again during the next meeting. There are around 900 staff in factory.
Rasuwa farmers lack market for potato
Farmers in Rasuwa district have been worried due to lack of market for their main production. They complained that their main source of income potato began to decay as they could not take the village products in the market.
The potatoes have started to decay as the farmers could not take to store as the rural road at Rasuwa-Mulkharka was disrupted since mid-June, said Mingmar Duje Tamang, a local farmer. The villagers have to bear the loss of around Rs. 5 million in Gatalangi VDC of the district, he added.
Potato is the main crop in the district as millet, maize and other crops are produced in less quantity due to cold in the district. The farmers manage their expenses by selling the potato.
The potatoes have started to decay as the farmers could not take to store as the rural road at Rasuwa-Mulkharka was disrupted since mid-June, said Mingmar Duje Tamang, a local farmer. The villagers have to bear the loss of around Rs. 5 million in Gatalangi VDC of the district, he added.
Potato is the main crop in the district as millet, maize and other crops are produced in less quantity due to cold in the district. The farmers manage their expenses by selling the potato.
Ministry rejects loan to Nepal Oil Corporation
Finance Ministry rejected Nepal Oil Corporation’s (NOC) plea to lend it. “The ministry is unable to provide loan to the state oil monopoly since no amount has been earmarked in the budget, joint secretary at ministry Ram Sharan Pudasaini said, adding that it has asked the corporation to manage fund on its own.
“The ministry is not in the position to provide loan to it from the beginning of the fiscal year,” he said, adding that the ministry could provide loan to NOC in the end of fiscal year only, if the budget remain unspent.
The first priority of the ministry is not to provide loan to the state oil monopoly but to implement the different programmes mentioned in the budget.
The state oil monopoly had asked the Finance Ministry to release Rs 750 million loan for the smooth supply of petroleum products. “The corporation had asked loan from the ministry for the smooth supply of fuel at the time of festivals,” acting managing director Bachchu Kumar Kafle said, adding that it will hold talks with Finance Ministry official, again.
“The corporation, however, does not have any outstanding loan of Indian Oil Corporation,” Kafle said, “but the corporation needs loan to clear the loss of running month and to increase the quantity of fuel supply.”
The corporation is incurring Rs 583.8 million loss every month, according to August 16 price list sent by Indian Oil Corporation. It is incurring Rs 9.23 loss on a litre of diesel, Re 0.87 on a litre of kerosene and Rs 260.5 on a cylinder of cooking gas.
However, the state oil monopoly is making Rs 2.54 profit on a litre of petrol and Rs 20.97 profit on a litre of Aviation Turbine Fuel (ATF).
The state oil monopoly can ensure regular supply of fuel, if the Finance Ministry releases loan, Kafle said.
“The ministry is not in the position to provide loan to it from the beginning of the fiscal year,” he said, adding that the ministry could provide loan to NOC in the end of fiscal year only, if the budget remain unspent.
The first priority of the ministry is not to provide loan to the state oil monopoly but to implement the different programmes mentioned in the budget.
The state oil monopoly had asked the Finance Ministry to release Rs 750 million loan for the smooth supply of petroleum products. “The corporation had asked loan from the ministry for the smooth supply of fuel at the time of festivals,” acting managing director Bachchu Kumar Kafle said, adding that it will hold talks with Finance Ministry official, again.
“The corporation, however, does not have any outstanding loan of Indian Oil Corporation,” Kafle said, “but the corporation needs loan to clear the loss of running month and to increase the quantity of fuel supply.”
The corporation is incurring Rs 583.8 million loss every month, according to August 16 price list sent by Indian Oil Corporation. It is incurring Rs 9.23 loss on a litre of diesel, Re 0.87 on a litre of kerosene and Rs 260.5 on a cylinder of cooking gas.
However, the state oil monopoly is making Rs 2.54 profit on a litre of petrol and Rs 20.97 profit on a litre of Aviation Turbine Fuel (ATF).
The state oil monopoly can ensure regular supply of fuel, if the Finance Ministry releases loan, Kafle said.
Vegetables fluctuating, fruits on the rise on price front
Price of vegetables has fluctuated in the local market over a period of one week while price of fruits is increasing. Price of seasonal vegetables has increased by Rs 2 to Rs 10 per kg.
Price of the vegetables such as small tomato, big tomato, carrot, cauliflower local, French bean, asparagus, pointed gourd and onion green has increased in the market by Rs 2 to Rs 10 per kg whereas price of some seasonal vegetables such as chilli green, brinjal long, mushroom, soyabean green and sword bean has dropped by Rs 2 to 15 Rs per kg compared to last week.
The price of onion is reported to have increased in Nepali market due to the lack of proper supply from India.
According to Kalimati Fruits and Vegetables Market Development Board (KFVMDB), the price of most of the vegetables has increased because of inadequate storage facility during monsoon.
“Decline in supplies of major vegetables has led to the increase in prices. In normal season provided that the supply situation is smooth, around 500 metric tons of vegetables enters the valley daily from neighboring districts,” said Binaya Shrestha, senior planning officer at KFVMDB. But with the arrival of monsoon, only around 300 to 350 metric tons of vegetables on average is entering the valley daily.
Shrestha said the upcoming Teej festival is also one of the reasons behind the increase in the price of vegetables like pointed gourd and cauliflower local as they are favorites during the festival season. However, the price of brinjal round, red cabbage, mustard leaf, spinach leaf and squash has remained constant over the period.
The major price rise has been seen in cow peas, pointed gourds and sword beans, which shot up by Rs 10 per kg on average.
“As the production of all these vegetables has declined locally and internationally, price of some of these vegetables has been continuously increasing,” said Shrestha.
He further added that compared to last week, price of vegetables has increased by almost 30 percent and it will continue to rise further as the supply is low while demand is high.
Price of fruits has been continuously increasing in the market as Nepal has to depend on India and China to meet the demand of fruits in the local market.
Price of the vegetables such as small tomato, big tomato, carrot, cauliflower local, French bean, asparagus, pointed gourd and onion green has increased in the market by Rs 2 to Rs 10 per kg whereas price of some seasonal vegetables such as chilli green, brinjal long, mushroom, soyabean green and sword bean has dropped by Rs 2 to 15 Rs per kg compared to last week.
The price of onion is reported to have increased in Nepali market due to the lack of proper supply from India.
According to Kalimati Fruits and Vegetables Market Development Board (KFVMDB), the price of most of the vegetables has increased because of inadequate storage facility during monsoon.
“Decline in supplies of major vegetables has led to the increase in prices. In normal season provided that the supply situation is smooth, around 500 metric tons of vegetables enters the valley daily from neighboring districts,” said Binaya Shrestha, senior planning officer at KFVMDB. But with the arrival of monsoon, only around 300 to 350 metric tons of vegetables on average is entering the valley daily.
Shrestha said the upcoming Teej festival is also one of the reasons behind the increase in the price of vegetables like pointed gourd and cauliflower local as they are favorites during the festival season. However, the price of brinjal round, red cabbage, mustard leaf, spinach leaf and squash has remained constant over the period.
The major price rise has been seen in cow peas, pointed gourds and sword beans, which shot up by Rs 10 per kg on average.
“As the production of all these vegetables has declined locally and internationally, price of some of these vegetables has been continuously increasing,” said Shrestha.
He further added that compared to last week, price of vegetables has increased by almost 30 percent and it will continue to rise further as the supply is low while demand is high.
Price of fruits has been continuously increasing in the market as Nepal has to depend on India and China to meet the demand of fruits in the local market.
Gold hits record high of Rs 53,400 per tola
The price of gold increased by whopping Rs 1,000 per tola (11.664 grams) in the domestic market on Monday, setting a new record of Rs 53,400 per tola.
Spot gold stuck a record $1888 per troy ounce in the international bullion market during early trading in the international bullion market on Monday.
Tej Ratna Shakya, president of Nepal Gold and Silver Dealer´s Association (Negosida), attributed the rise to increased consumption of the yellow metal by India and China following downgrading of the US credit rating. He also said price rise on Monday was also because of slowdown in global stock market amid growing uncertainties.
The Venezuelan government´s decision of withdrawing its gold held at US and European banks also contributed to rise in gold prices.
Gold has become dearer by Rs 4,000 per tola in the domestic market in a week´s period. Rising gold prices, meanwhile, have caused sales volume of gold to drop by less than 25 percent.
Price of silver also increased to Rs 1,230 per tola in the domestic market on Monday.
Shakya expects the yellow metal to glitter further in the coming days as there is no sign of global economy returning to normalcy anytime soon.
Spot gold stuck a record $1888 per troy ounce in the international bullion market during early trading in the international bullion market on Monday.
Tej Ratna Shakya, president of Nepal Gold and Silver Dealer´s Association (Negosida), attributed the rise to increased consumption of the yellow metal by India and China following downgrading of the US credit rating. He also said price rise on Monday was also because of slowdown in global stock market amid growing uncertainties.
The Venezuelan government´s decision of withdrawing its gold held at US and European banks also contributed to rise in gold prices.
Gold has become dearer by Rs 4,000 per tola in the domestic market in a week´s period. Rising gold prices, meanwhile, have caused sales volume of gold to drop by less than 25 percent.
Price of silver also increased to Rs 1,230 per tola in the domestic market on Monday.
Shakya expects the yellow metal to glitter further in the coming days as there is no sign of global economy returning to normalcy anytime soon.
Monday, August 22, 2011
Record Nepalis migrate for overseas jobs
The rising trend of outflux of Nepali migrant workers also continued in the first month (Shrawan) of the current fiscal year 2011-12 with a record high migration for the foreign jobs.
According to Department of Foreign Employment, about 45,165 Nepalis joined foreign jobs in about three dozen countries in Shrawan (mid-July to mid-August). Some 40,461 and 44,715 had joined the foreign jobs in the eleventh and twelfth months of the last fiscal year.
Despite the growth in number, there has been no change in major job markets and nature of works. Still over 70 per cent Nepali migrant workers are unskilled and hired for construction and manufacturing works in Gulf countries and Malaysia. Four major destinations – Qatar, Saudi Arabia, the United Arab Emirates (UAE) and Malaysia – are the key markets hiring some 90.3 per cent of the total Nepali migrant workers.
According to the department, Qatar tops in hiring Nepali workers with employing 15,702 over job aspirants. Qatar has been in top position since February following the FIFA decision to host of World Cup Football 2022.
Most of the Qatari recruitments these days are in construction sector.
Malaysia — the second preferred destination — hired 9,671 Nepalis in Shrawan after the Malaysian government decision to continue foreign workers in three D (dirty, difficult and dangerous) works.
Monthly demands from Malaysia had reduced to 6,500 in March-June period as the work permits to foreign workers had been stopped for a while to introduce biometric identity cards meant for curtailing illegal workers.
Gulf countries, Saudi Arabia, the UAE and Kuwait become third, fourth and fifth hiring countries last month.
They hired 8,538; 6,873 and 2,088 Nepali migrant workers, respectively. Bahrain and Oman hired some 799 and 455 Nepalis during the first months of current fiscal year.
However, Eurozone hired not one and among Asian countries South Korea hired 393 Nepalis under Employment Permit System and 133 Nepali reached to Japan through individual contracts.
War-ravaged Afghanistan hired some 71 Nepalis in security and engineering sector while Macau hired 50 security personnel in the casinos.
Israel, which had stopped hiring Nepali women since April 2009, hired some 61 women in agriculture sector. The country is opening caregiver jobs to Nepali women from next week.
Algeria, an African country has hired some 44 workers after the gap of 11 months, while Egypt hired 19 Nepalis including a woman.
Shrawan, the first month of fiscal year, has given some hope for women migrant workers too as a record numbers of 2,002 have joined foreign jobs. Government has opened Gulf countries for Nepali women in February and the issuing of work permits started two months ago after ensuring safety measures.
Kuwait is the first preferred destination in hiring Nepali women migrant workers with 942 employment followed by the UAE (468), Malaysia (185), Oman (96), Qatar (95) and Bahrain (73).
According to Department of Foreign Employment, about 45,165 Nepalis joined foreign jobs in about three dozen countries in Shrawan (mid-July to mid-August). Some 40,461 and 44,715 had joined the foreign jobs in the eleventh and twelfth months of the last fiscal year.
Despite the growth in number, there has been no change in major job markets and nature of works. Still over 70 per cent Nepali migrant workers are unskilled and hired for construction and manufacturing works in Gulf countries and Malaysia. Four major destinations – Qatar, Saudi Arabia, the United Arab Emirates (UAE) and Malaysia – are the key markets hiring some 90.3 per cent of the total Nepali migrant workers.
According to the department, Qatar tops in hiring Nepali workers with employing 15,702 over job aspirants. Qatar has been in top position since February following the FIFA decision to host of World Cup Football 2022.
Most of the Qatari recruitments these days are in construction sector.
Malaysia — the second preferred destination — hired 9,671 Nepalis in Shrawan after the Malaysian government decision to continue foreign workers in three D (dirty, difficult and dangerous) works.
Monthly demands from Malaysia had reduced to 6,500 in March-June period as the work permits to foreign workers had been stopped for a while to introduce biometric identity cards meant for curtailing illegal workers.
Gulf countries, Saudi Arabia, the UAE and Kuwait become third, fourth and fifth hiring countries last month.
They hired 8,538; 6,873 and 2,088 Nepali migrant workers, respectively. Bahrain and Oman hired some 799 and 455 Nepalis during the first months of current fiscal year.
However, Eurozone hired not one and among Asian countries South Korea hired 393 Nepalis under Employment Permit System and 133 Nepali reached to Japan through individual contracts.
War-ravaged Afghanistan hired some 71 Nepalis in security and engineering sector while Macau hired 50 security personnel in the casinos.
Israel, which had stopped hiring Nepali women since April 2009, hired some 61 women in agriculture sector. The country is opening caregiver jobs to Nepali women from next week.
Algeria, an African country has hired some 44 workers after the gap of 11 months, while Egypt hired 19 Nepalis including a woman.
Shrawan, the first month of fiscal year, has given some hope for women migrant workers too as a record numbers of 2,002 have joined foreign jobs. Government has opened Gulf countries for Nepali women in February and the issuing of work permits started two months ago after ensuring safety measures.
Kuwait is the first preferred destination in hiring Nepali women migrant workers with 942 employment followed by the UAE (468), Malaysia (185), Oman (96), Qatar (95) and Bahrain (73).
NTA mulls to shift frequency band of UTL
Nepal Telecommunications Authority (NTA) is planning to shift frequency carrier of United Telecom Ltd (UTL) from GSM band to CDMA.
“The shifting process is under the discussion currently,” NTA spokesperson Kailash Prasad Neupane said, adding that the next board meeting of the authority could take decision on the matter.
The authority is preparing to grant UTL’s frequency to Smart Telecom, an informed source at the authority said, adding that it will be another hasty decision of the authority that has been under pressure from the lawmakers for its earlier hasty decisions.
Currently, UTL is using frequency under CDMA 800 band and 1900 band.
“Of which, CDMA 880-890 band can be used for both CDMA and GSM technology,” the source said.
Currently, UTL is using three carriers — 824-827 MHz paired with 869-872 MHz (2x3 MHz) and 840-841.25 MHz paired with 885-886.25 MHz (2x1.25 MHz) under CDMA 800 band and 1855-1860 MHz paired with 1935-1940 MHz (2x5 MHz) under CDMA 1900 band, according to the authority.
The authority had granted the frequency to UTL to operate CDMA technology at first and later the authority had granted the frequency under MSTDMA technology and it is preparing to shift the technology from 885-90 from CDMA to GSM, the soure said, adding that the hidden motive of the authority is to provide frequency band to Smart Telecom — a rural telecom service provider — which has acquired licence to operate in different 25 rural districts.
A sub-committee of Public Accounts Committee (PAC) under Legislature Parliament has been questioning the intention of the authority and Ministry of Information and Communication for providing more facilities to the Smart telecom.
The sub-committee members in a recent meeting had doubted the government’s intention of providing more facilities in rampant manner.
The sub-committee coordinator and former finance minister Dr Prakash Chandra Lohani had pledged that the government officials should be brought under the scanner for their suspected activities.
The government had granted licence to Smart Telecom on 2008 July 1. It has some 109,229 consumer base until mid-June.
However, spokesperson at the Nepal Telecommunications Authority said that the authority will reach into the conclusion after thorough discussion on the issue as the authority’s decision has been questioned by the lawmakers.
“The shifting process is under the discussion currently,” NTA spokesperson Kailash Prasad Neupane said, adding that the next board meeting of the authority could take decision on the matter.
The authority is preparing to grant UTL’s frequency to Smart Telecom, an informed source at the authority said, adding that it will be another hasty decision of the authority that has been under pressure from the lawmakers for its earlier hasty decisions.
Currently, UTL is using frequency under CDMA 800 band and 1900 band.
“Of which, CDMA 880-890 band can be used for both CDMA and GSM technology,” the source said.
Currently, UTL is using three carriers — 824-827 MHz paired with 869-872 MHz (2x3 MHz) and 840-841.25 MHz paired with 885-886.25 MHz (2x1.25 MHz) under CDMA 800 band and 1855-1860 MHz paired with 1935-1940 MHz (2x5 MHz) under CDMA 1900 band, according to the authority.
The authority had granted the frequency to UTL to operate CDMA technology at first and later the authority had granted the frequency under MSTDMA technology and it is preparing to shift the technology from 885-90 from CDMA to GSM, the soure said, adding that the hidden motive of the authority is to provide frequency band to Smart Telecom — a rural telecom service provider — which has acquired licence to operate in different 25 rural districts.
A sub-committee of Public Accounts Committee (PAC) under Legislature Parliament has been questioning the intention of the authority and Ministry of Information and Communication for providing more facilities to the Smart telecom.
The sub-committee members in a recent meeting had doubted the government’s intention of providing more facilities in rampant manner.
The sub-committee coordinator and former finance minister Dr Prakash Chandra Lohani had pledged that the government officials should be brought under the scanner for their suspected activities.
The government had granted licence to Smart Telecom on 2008 July 1. It has some 109,229 consumer base until mid-June.
However, spokesperson at the Nepal Telecommunications Authority said that the authority will reach into the conclusion after thorough discussion on the issue as the authority’s decision has been questioned by the lawmakers.
Government delays opening of new peaks for mountaineering
Though mountaineering sector is of crucial importance for tourism development, the government has not shown any interest on unveiling new peaks for mountaineering. “It’s been more than a year that the government-formed task force has submitted its recommendation including opening of some new peaks at the China and India border,” immediate past president of Nepal Mountaineering Association, Ang Tshering Sherpa, said, adding that government, has however, not shown its concern.
The government has not developed any new product or any new package for this tourist season,” he said, adding that the tourist are in search of more new destination and new peaks.
There a number of peaks on Nepal-China and Nepal-India border, which if opened can add bring in more tourists to Nepal that can increase the overall stay period too.
The mountaineering activities creates direct employment for the rural populace apart from development of infrastructure, Sherpa said, expressing his disappointment on lack of government’s proper attention on the sector. “Some two years earlier the government itself formed a 15-member team to look after mountaineering and adventure tourism sector, however even after completion of the team’s tenure, the government yet has not shown any interest on its recommendations,” he said. The task force was formed to revise rules and regulation of trekking, climbing, mountaineering and rafting sector. According to the government plan, the task force had also done a comparative study of international and national mountaineering and adventure tourism sector.
The government has also implemented some of the recommendations like scrapping of royalty for peaks lower than 6,000 metres, to make the Nepal Tourism Year 2011 success. But it has yet to implement a lots of recommendations that could help develop mountaineering sector and reduce negative impact on climbers at base camp as the task force has asked for provisions for climbing team to land below the base camp.
The recommendation also sought provisions for helping Sherpa and radio communication for mountains 8,000 metres or above and one high altitude guide for a team for other mountains.
However, the key recommendation was opening of new peaks for mountaineering. The recommendation also included preparation of route and map with detailed information about mountains. Compulsory use of toilet bags at and above base camps for human waste and making associated agency responsible for proper disposal were also some of the recommendations.
The government has not developed any new product or any new package for this tourist season,” he said, adding that the tourist are in search of more new destination and new peaks.
There a number of peaks on Nepal-China and Nepal-India border, which if opened can add bring in more tourists to Nepal that can increase the overall stay period too.
The mountaineering activities creates direct employment for the rural populace apart from development of infrastructure, Sherpa said, expressing his disappointment on lack of government’s proper attention on the sector. “Some two years earlier the government itself formed a 15-member team to look after mountaineering and adventure tourism sector, however even after completion of the team’s tenure, the government yet has not shown any interest on its recommendations,” he said. The task force was formed to revise rules and regulation of trekking, climbing, mountaineering and rafting sector. According to the government plan, the task force had also done a comparative study of international and national mountaineering and adventure tourism sector.
The government has also implemented some of the recommendations like scrapping of royalty for peaks lower than 6,000 metres, to make the Nepal Tourism Year 2011 success. But it has yet to implement a lots of recommendations that could help develop mountaineering sector and reduce negative impact on climbers at base camp as the task force has asked for provisions for climbing team to land below the base camp.
The recommendation also sought provisions for helping Sherpa and radio communication for mountains 8,000 metres or above and one high altitude guide for a team for other mountains.
However, the key recommendation was opening of new peaks for mountaineering. The recommendation also included preparation of route and map with detailed information about mountains. Compulsory use of toilet bags at and above base camps for human waste and making associated agency responsible for proper disposal were also some of the recommendations.
Foreign employment bond in offing this fiscal‚ too
The central bank is gearing up to permit the purchase of foreign employment bonds in Nepal from remittance money to push the sales of Foreign Employment Bond.
The last two releases of Foreign Employment Bond were not successful as the bond agents in foreign countries were able to sell only meagre portion of the total issue.
“But this time, we will allow the bonds to be purchased by the migrant workers’ family members as well from the remittance,” spokesperson for Nepal Rastra Bank (NRB) informed Bhaskar Mani Gyanwali. NRB will make migrant workers to open bank accounts at home at zero balance and channel the remittance through the account, he said, adding that the deposits in that account can be used by the worker’s family to purchase the bond.
Earlier, the bonds were sold in five destination countries – South Korea, Malaysia, Qatar, Saudi Arabia and United Arab Emirates through the designated agents. As the higher interest rate at home also could not attract the Nepali migrant workers to purchase the bond abroad, the central bank is looking forward to luring the migrant worker’s family to purchase the bond.
Last fiscal year, the central bank had issued Foreign Employment Bond worth Rs 5 billion, of which only Rs 4 million worth of bonds were sold despite the attractive coupon rate of 10.5 per cent per annum. It had even extended the purchase period by ten days.
The fiscal year before that also the agents were able to sell only Rs 4.6 million worth of the first issue of Foreign Employment Bonds of the total issue worth Rs 1 billion. The central bank in 2009-10, has planned Rs 7 billion worth Foreign Employment Bond but issued only Rs 1 billion.
But NRB had revised the coupon rate for last fiscal year’s issue of the bond making it the highest interest yielding long term government debt instrument to attract more migrant workers. However, that also failed to catch the attention due to absence of enough publicity. “This fiscal year’s issue will see more publicity for the bond to create awareness among migrant workers,” Gyanwali said, attributing absence of publicity for cold response for the previous issues of the bond.
The government is expected to raise Rs 37.41 billion through internal borrowing this fiscal year to meet its budget deficit. Along with citizen saving bond, development bond and treasury bills, Foreign Employment Bond will be issued by the central bank.
The Foreign Employment Bond is supposed to be an instrument to channelise the remittance earned by the migrant workers and give them opportunity to divulge in risk free high return instrument. Moreover, it was considered to be an effective passage to divert the remittance coming in from informal channels to the formal.
The designated agents had also blamed lack of publicity for the failure of the bonds abroad. The low commission fee of 0.25 per cent that remitters get for mediating bond’s sales also did not encourage the agents to push for the sales.
Each year around 300,000 Nepalis are leaving for foreign countries in search for jobs. Currently, there are more than 2 million migrant Nepali workers, who are working in different destinations across the globe. The estimated annual earning of them is considered to be over Rs 400 billion.
According to a recent study of World Bank, Nepal is one of the top ten remittance receiving countries with $2.5 billion in 2009-10.
The last two releases of Foreign Employment Bond were not successful as the bond agents in foreign countries were able to sell only meagre portion of the total issue.
“But this time, we will allow the bonds to be purchased by the migrant workers’ family members as well from the remittance,” spokesperson for Nepal Rastra Bank (NRB) informed Bhaskar Mani Gyanwali. NRB will make migrant workers to open bank accounts at home at zero balance and channel the remittance through the account, he said, adding that the deposits in that account can be used by the worker’s family to purchase the bond.
Earlier, the bonds were sold in five destination countries – South Korea, Malaysia, Qatar, Saudi Arabia and United Arab Emirates through the designated agents. As the higher interest rate at home also could not attract the Nepali migrant workers to purchase the bond abroad, the central bank is looking forward to luring the migrant worker’s family to purchase the bond.
Last fiscal year, the central bank had issued Foreign Employment Bond worth Rs 5 billion, of which only Rs 4 million worth of bonds were sold despite the attractive coupon rate of 10.5 per cent per annum. It had even extended the purchase period by ten days.
The fiscal year before that also the agents were able to sell only Rs 4.6 million worth of the first issue of Foreign Employment Bonds of the total issue worth Rs 1 billion. The central bank in 2009-10, has planned Rs 7 billion worth Foreign Employment Bond but issued only Rs 1 billion.
But NRB had revised the coupon rate for last fiscal year’s issue of the bond making it the highest interest yielding long term government debt instrument to attract more migrant workers. However, that also failed to catch the attention due to absence of enough publicity. “This fiscal year’s issue will see more publicity for the bond to create awareness among migrant workers,” Gyanwali said, attributing absence of publicity for cold response for the previous issues of the bond.
The government is expected to raise Rs 37.41 billion through internal borrowing this fiscal year to meet its budget deficit. Along with citizen saving bond, development bond and treasury bills, Foreign Employment Bond will be issued by the central bank.
The Foreign Employment Bond is supposed to be an instrument to channelise the remittance earned by the migrant workers and give them opportunity to divulge in risk free high return instrument. Moreover, it was considered to be an effective passage to divert the remittance coming in from informal channels to the formal.
The designated agents had also blamed lack of publicity for the failure of the bonds abroad. The low commission fee of 0.25 per cent that remitters get for mediating bond’s sales also did not encourage the agents to push for the sales.
Each year around 300,000 Nepalis are leaving for foreign countries in search for jobs. Currently, there are more than 2 million migrant Nepali workers, who are working in different destinations across the globe. The estimated annual earning of them is considered to be over Rs 400 billion.
According to a recent study of World Bank, Nepal is one of the top ten remittance receiving countries with $2.5 billion in 2009-10.
Sujal Dairy brings Safal Ghee
Sujal Dairy has introduced ‘Safal Dairy Ghee’ throughout the country with the advertisement campaign ‘Make Your Day Special With Safal Dairy Ghee’.
The ghee brand is already popular in Pokhara and peripheral areas since last seven years, the company said, claiming that it uses only the butter of cow and buffalo milk so that purity and utmost care in the production procedure.
Safal Ghee also assured a great aroma, flavour and taste to the food, according to the company. It is available in one litre and half litre jar and packets.
Sujal Dairy — an ISO 22000:2005 certified company — has been a leading milk processing company in Pokhara and Peripheral area since last seven years. “The dairy supplies milk products like Safal Milk, Safal Yogurt, Safal Ice cream, Safal Paneer, Safal Cheese, Safal Cream and Safal Smart Flavoured Milk,” it added.
The ghee brand is already popular in Pokhara and peripheral areas since last seven years, the company said, claiming that it uses only the butter of cow and buffalo milk so that purity and utmost care in the production procedure.
Safal Ghee also assured a great aroma, flavour and taste to the food, according to the company. It is available in one litre and half litre jar and packets.
Sujal Dairy — an ISO 22000:2005 certified company — has been a leading milk processing company in Pokhara and Peripheral area since last seven years. “The dairy supplies milk products like Safal Milk, Safal Yogurt, Safal Ice cream, Safal Paneer, Safal Cheese, Safal Cream and Safal Smart Flavoured Milk,” it added.
Deposits in co-ops more than doubled last fiscal
While banks and financial institutions (BFIs) struggled to attract deposits, people’s deposits in cooperatives more than doubled in the last fiscal year.
Cooperatives are holding deposits of Rs 150 billion as of the last fiscal year, up from Rs 70 billion a year ago, according to the Department of Cooperatives. The figure is 95 percent of the total deposits being currently held by A, B and C class BFIs. Besides deposit collection, there has also been a significant growth in cooperatives’ investment. Their lending grew to Rs 105 billion last year from Rs 43.46 billion in the previous year.
The whopping growth in deposits of cooperatives illustrates the fact what bankers were speculating—diversion of deposits to cooperatives from BFIs.
Although deposits are coming back to commercial banks lately, B and C class FIs are yet to see rise in their deposits, said a senior Nepal Rastra Bank (NRB) official. Of late, B and C class FIs are losing public confidence with some of them landing in trouble.
Finance companies also admit that their deposits moved to other areas. “Due to recent turmoil in finance companies as a result of liquidity crunch and governance related issues, a huge chunk of deposits shifted to other FIs from finance companies,” said Rajendra Man Shakya, president of Finance Companies’ Association of Nepal.
Bankers claim that the income source disclosure provision led people to divert their deposits to cooperatives. “It could be one of the reasons behind the deposit diversion,” said NMB Bank CEO Upendra Poudel.
The budget for the current fiscal year has replaced the income source disclosure provision with negative declaration.
Poudel, however, said the diversion of deposits to cooperatives may have affected saving deposits in banks, but not the system, as cooperatives put these deposits in their call accounts in banks.
Saving and credit cooperatives are the biggest receivers of public deposits. As of mid-March, such cooperatives held Rs 97.49 billion, while total deposits in all types of cooperatives stood at Rs 130 billion.
There are a total of 22,646 cooperatives in the country, of which 10,558 are saving and credit, 4,096 multipurpose, 3,144 agriculture, 1,748 dairy and 1,379 consumer. Likewise, there are 371 cooperatives in electricity production, 161 in vegetable and fruits production, 104 in tea production, 67 in coffee production, 61 in health sector, 51 in honey production, 73 in herbal production and 833 in other categories.
DoC statistics show that 2,922 new cooperatives were registered last year.
Of late, cooperatives have also come up in many productive and social sectors. “Many cooperatives are being operated in the areas like processing industries, cold storage, hospital, hydro power and tourism,” said DoC Registrar Sudarshan Dhakal. “The sector is expanding due to strengthening of central cooperatives associations, capacity building and large amount of investment.” The government has also prioritised cooperatives naming the sector one of three pillars of the economy.
Cooperatives are holding deposits of Rs 150 billion as of the last fiscal year, up from Rs 70 billion a year ago, according to the Department of Cooperatives. The figure is 95 percent of the total deposits being currently held by A, B and C class BFIs. Besides deposit collection, there has also been a significant growth in cooperatives’ investment. Their lending grew to Rs 105 billion last year from Rs 43.46 billion in the previous year.
The whopping growth in deposits of cooperatives illustrates the fact what bankers were speculating—diversion of deposits to cooperatives from BFIs.
Although deposits are coming back to commercial banks lately, B and C class FIs are yet to see rise in their deposits, said a senior Nepal Rastra Bank (NRB) official. Of late, B and C class FIs are losing public confidence with some of them landing in trouble.
Finance companies also admit that their deposits moved to other areas. “Due to recent turmoil in finance companies as a result of liquidity crunch and governance related issues, a huge chunk of deposits shifted to other FIs from finance companies,” said Rajendra Man Shakya, president of Finance Companies’ Association of Nepal.
Bankers claim that the income source disclosure provision led people to divert their deposits to cooperatives. “It could be one of the reasons behind the deposit diversion,” said NMB Bank CEO Upendra Poudel.
The budget for the current fiscal year has replaced the income source disclosure provision with negative declaration.
Poudel, however, said the diversion of deposits to cooperatives may have affected saving deposits in banks, but not the system, as cooperatives put these deposits in their call accounts in banks.
Saving and credit cooperatives are the biggest receivers of public deposits. As of mid-March, such cooperatives held Rs 97.49 billion, while total deposits in all types of cooperatives stood at Rs 130 billion.
There are a total of 22,646 cooperatives in the country, of which 10,558 are saving and credit, 4,096 multipurpose, 3,144 agriculture, 1,748 dairy and 1,379 consumer. Likewise, there are 371 cooperatives in electricity production, 161 in vegetable and fruits production, 104 in tea production, 67 in coffee production, 61 in health sector, 51 in honey production, 73 in herbal production and 833 in other categories.
DoC statistics show that 2,922 new cooperatives were registered last year.
Of late, cooperatives have also come up in many productive and social sectors. “Many cooperatives are being operated in the areas like processing industries, cold storage, hospital, hydro power and tourism,” said DoC Registrar Sudarshan Dhakal. “The sector is expanding due to strengthening of central cooperatives associations, capacity building and large amount of investment.” The government has also prioritised cooperatives naming the sector one of three pillars of the economy.
Explore Asia unveils new IT products
Explore Asia Pacific, one of the prominent names in the domestic information technology (IT) market, has unveiled new IT products from Jetway, Genius and Panda.
The company has introduced three motherboards from Jetway—the MIH61M-D, the MIH55T-M and the I41M. According to Explore Asia, these motherboards are compatible with both PC and gaming series and are priced from Rs 3,000 to Rs 5,100.
The company has also brought in four variants of desktop mouse, nine variants of wired as well as wireless mouse for laptops and notebooks. They are available for Rs 379 to Rs 4,140. Other new products include six variants of normal, multimedia, combo normal, combo (Keyboard monitor + speaker), slim multimedia and slim multimedia wireless combo keyboard sets which are priced between Rs 483 to Rs 1,932. Similarly, there are eight varieties of headsets, 10 varieties of gaming devices and 11 varieties of speakers priced between Rs 414 and Rs 1,242, Rs 621 and Rs 2,553 and Rs 1380 and Rs 6,762, respectively. From the Genius stable, there are three variants of tablets priced between Rs 4140 and Rs 5,520 and three variants of web cam available for Rs 1,242 and Rs 2622. There are also netbook and AGAMA accessories.
According to the company, Taiwan-based Genius is one of the most popular peripheral manufacturers of the world with more than 100 products under its portfolio. “Genius devices are perfect for those who seek branded products at nominal prices,” said Neeraj Sharma, managing director of Explore Asia Pacific. “We aim to grab 30 to 40 percent share in the domestic peripherals market by marketing devices from Genius.”
The company has unveiled four Panda software which are priced between Rs 975 and Rs 3,975. The Spanish brand, according to Explore Asia, has earned high reputation in the European market. “We have launched the software in different categories. Panda’s software is useful for individuals to big corporate houses,” said Sharma, adding that this is the first software available in the domestic market that supports cloud computing.
Narayanghat-based Explore Asia started its operation in 2009. In 2010, the company started marketing its products aggressively by opening a corporate office in Kathmandu. It aims to introduce more brands and expand its retail stores throughout the country. “Our main goal is to market branded IT products at reasonable prices,” said Sharma. “Most of the motherboard companies give a three-year warranty on their products, but domestic importers only offer one year’s. We have maintained a policy of supplying same products, same level of services and warranty that the parent company delivers.”
Besides, the company also markets IT products from A-Data Technology, Simmetronics and it is the associate partner of HP and Dell.
The company has introduced three motherboards from Jetway—the MIH61M-D, the MIH55T-M and the I41M. According to Explore Asia, these motherboards are compatible with both PC and gaming series and are priced from Rs 3,000 to Rs 5,100.
The company has also brought in four variants of desktop mouse, nine variants of wired as well as wireless mouse for laptops and notebooks. They are available for Rs 379 to Rs 4,140. Other new products include six variants of normal, multimedia, combo normal, combo (Keyboard monitor + speaker), slim multimedia and slim multimedia wireless combo keyboard sets which are priced between Rs 483 to Rs 1,932. Similarly, there are eight varieties of headsets, 10 varieties of gaming devices and 11 varieties of speakers priced between Rs 414 and Rs 1,242, Rs 621 and Rs 2,553 and Rs 1380 and Rs 6,762, respectively. From the Genius stable, there are three variants of tablets priced between Rs 4140 and Rs 5,520 and three variants of web cam available for Rs 1,242 and Rs 2622. There are also netbook and AGAMA accessories.
According to the company, Taiwan-based Genius is one of the most popular peripheral manufacturers of the world with more than 100 products under its portfolio. “Genius devices are perfect for those who seek branded products at nominal prices,” said Neeraj Sharma, managing director of Explore Asia Pacific. “We aim to grab 30 to 40 percent share in the domestic peripherals market by marketing devices from Genius.”
The company has unveiled four Panda software which are priced between Rs 975 and Rs 3,975. The Spanish brand, according to Explore Asia, has earned high reputation in the European market. “We have launched the software in different categories. Panda’s software is useful for individuals to big corporate houses,” said Sharma, adding that this is the first software available in the domestic market that supports cloud computing.
Narayanghat-based Explore Asia started its operation in 2009. In 2010, the company started marketing its products aggressively by opening a corporate office in Kathmandu. It aims to introduce more brands and expand its retail stores throughout the country. “Our main goal is to market branded IT products at reasonable prices,” said Sharma. “Most of the motherboard companies give a three-year warranty on their products, but domestic importers only offer one year’s. We have maintained a policy of supplying same products, same level of services and warranty that the parent company delivers.”
Besides, the company also markets IT products from A-Data Technology, Simmetronics and it is the associate partner of HP and Dell.
Banks see sharp fall in PE ratios
With share prices of commercial banks witnessing correction in the last fiscal year, their price to earning ratio (PE ratio) came down sharply at the end of fiscal year 2010-11.
PE ratio is calculated by dividing share price by per share earning.
According to unaudited fourth quarter reports of commercial banks, their PE ratios, one of the major investment indicators of the stock market, came down sharply over the last year along with the freefall in the stock market.
A majority of the 17 banks that published financial results of the last fiscal year saw their PE ratio standing between 10 and 20. This is a sharp fall compared to the previous year when the ratio was above 20. Last year, Machhapuchhre Bank’s PE ratio was as high as 56.90 followed by Global Bank with 52.48. Now, Global’s ratio has come down to 13.85.
Last year saw a sharp correction in bank’s PE ratios, which is evident with the fact that banks like Standard Chartered witnessed a sharp decline in their PE ratios. The Standard Chartered’s ratio came down to 25.92 from 42.23. Other banks witnessing PE ratio above 20 are DCBL Bank and Citizens Bank International.
Stock analysts say an average PE ratio of 15 is justifiable for commercial banks. “PE ratios of well-priced stock stand between 10 and 17, whereas if it goes lower than 10, the stock is said to be less-priced,” said analyst Rabindra Bhattarai.
Currently, Nepal Investment Bank, Agriculture Development Bank, Nepal Bangladesh Bank and Lumbini Bank have PE ratios less than 10. Bhattarai said for companies having higher growth prospects, the PE ratio can go as high as 25 and still such stock is not considered speculative.
NIC Bank CEO Sashin Joshi expressed a similar view. “The reasonable PE ratio of commercial banks should be between 15 and 20,” he said. However, the investors do not consider PE ratio while making investment decision. “Other factors such as corporate governance, strategy and management of a company are also taken into account before buying stock,” said Joshi.
Despite the higher PE ratio, according to Bhattarai, investors are interested in investing in SCB’s stock due to its goodwill and strong corporate governance.
Joshi predicted further adjustment in PE ratio of some banks.
PE ratio is calculated by dividing share price by per share earning.
According to unaudited fourth quarter reports of commercial banks, their PE ratios, one of the major investment indicators of the stock market, came down sharply over the last year along with the freefall in the stock market.
A majority of the 17 banks that published financial results of the last fiscal year saw their PE ratio standing between 10 and 20. This is a sharp fall compared to the previous year when the ratio was above 20. Last year, Machhapuchhre Bank’s PE ratio was as high as 56.90 followed by Global Bank with 52.48. Now, Global’s ratio has come down to 13.85.
Last year saw a sharp correction in bank’s PE ratios, which is evident with the fact that banks like Standard Chartered witnessed a sharp decline in their PE ratios. The Standard Chartered’s ratio came down to 25.92 from 42.23. Other banks witnessing PE ratio above 20 are DCBL Bank and Citizens Bank International.
Stock analysts say an average PE ratio of 15 is justifiable for commercial banks. “PE ratios of well-priced stock stand between 10 and 17, whereas if it goes lower than 10, the stock is said to be less-priced,” said analyst Rabindra Bhattarai.
Currently, Nepal Investment Bank, Agriculture Development Bank, Nepal Bangladesh Bank and Lumbini Bank have PE ratios less than 10. Bhattarai said for companies having higher growth prospects, the PE ratio can go as high as 25 and still such stock is not considered speculative.
NIC Bank CEO Sashin Joshi expressed a similar view. “The reasonable PE ratio of commercial banks should be between 15 and 20,” he said. However, the investors do not consider PE ratio while making investment decision. “Other factors such as corporate governance, strategy and management of a company are also taken into account before buying stock,” said Joshi.
Despite the higher PE ratio, according to Bhattarai, investors are interested in investing in SCB’s stock due to its goodwill and strong corporate governance.
Joshi predicted further adjustment in PE ratio of some banks.
Indian goldsmiths raking in the moolah
- There are an estimated 50,000 workers engaged in the local jewellery sector, of which 60 percent are Indians
It may surprise many, but Rs 5 billion goes to India annually through Indian goldsmiths working in Nepal. With dearth of domestic workforce, the local jewellery market is heavily dependent on Indian jewellery makers, employing above 30,000 Indians.
Nepal Gold and Silver Dealers Association (Negosida) says there are an estimated 50,000 workers engaged in the local jewellery sector, of which 60 percent are Indians. “Many Nepalis leave the country for foreign employment, but we are facing shortage of workers,” said Tej Ratna Shakya, president NEGOSIDA.
According to Shakya, Indian workers are hired in all major cities and they are gradually making to hilly markets such as Baglung, Nuwakot and Gorkha. Salaries of these Indian workers range from Rs 10,000 to over Rs 100,000 per month depending on their skills.
At a time when domestic workers are increasingly getting involved in trade union activities, employing Indian workers is highly advantageous for bullion businessmen. They say Indians have no political affiliation and they work for longer hours.
“Skilled Indian goldsmiths earn over Rs 100,000 per month in Nepal,” said NK Gupta, managing director of Shree Riddhi Shiddhi Jewellers. Gupta, who is also the treasurer of Nepal Gems and Jewellery Association, said they time and again asked the government to bring such workers under the tax net, but to no avail.
Although the Indian workforce is sustaining the local jewellery business, getting dependent on them also has a flip side. Gold dealers say original Nepali ornament designs are dying out as Indian workers are not competent enough to design traditional Nepali jewelleries.
“Nepali youths think there is no future in this occupation,” said Shakya. “But there is a huge scope of employment in this sector with possibilities of exporting custom and contemporary jewelleries to the international market.”
About five years ago, Negosida had taken an initiative to train local youths in jewellery works. However, the plan could not draw enough response. Nepal has been exporting silver jewelleries and utensils in the international market, but exporters have not been able to attract buyers for gold jewelleries due to lack of competent workers, new technology and government policies to boost export. “We are unable to export jewelleries, but many goldsmiths in India, who earlier worked in Nepal, are designing Nepali styles and exporting to the international market,” said Gupta.
Gold at Rs 44,925
Following the international market trend, gold price on Sunday increased to a new high of Rs 44,925 per 10 gm (Rs 52,400 per tola), up by Rs 130 per 10 gm compared to the Friday’s price of Rs 44,795 per 10 gm. The price has increased by Rs 2,660 per 10 gm since last Sunday. The precious yellow metal was traded at Rs 42,265 last Sunday. The trend of investing in gold is increasing with no sign of improvement in the financial crisis in Europe and the US. “Gold price has increased from $1,843 to $1852.10 per ounce,” said Tej Ratna Bajracharya, president of Negosida, adding that it may take around a week for correction in the gold market.
It may surprise many, but Rs 5 billion goes to India annually through Indian goldsmiths working in Nepal. With dearth of domestic workforce, the local jewellery market is heavily dependent on Indian jewellery makers, employing above 30,000 Indians.
Nepal Gold and Silver Dealers Association (Negosida) says there are an estimated 50,000 workers engaged in the local jewellery sector, of which 60 percent are Indians. “Many Nepalis leave the country for foreign employment, but we are facing shortage of workers,” said Tej Ratna Shakya, president NEGOSIDA.
According to Shakya, Indian workers are hired in all major cities and they are gradually making to hilly markets such as Baglung, Nuwakot and Gorkha. Salaries of these Indian workers range from Rs 10,000 to over Rs 100,000 per month depending on their skills.
At a time when domestic workers are increasingly getting involved in trade union activities, employing Indian workers is highly advantageous for bullion businessmen. They say Indians have no political affiliation and they work for longer hours.
“Skilled Indian goldsmiths earn over Rs 100,000 per month in Nepal,” said NK Gupta, managing director of Shree Riddhi Shiddhi Jewellers. Gupta, who is also the treasurer of Nepal Gems and Jewellery Association, said they time and again asked the government to bring such workers under the tax net, but to no avail.
Although the Indian workforce is sustaining the local jewellery business, getting dependent on them also has a flip side. Gold dealers say original Nepali ornament designs are dying out as Indian workers are not competent enough to design traditional Nepali jewelleries.
“Nepali youths think there is no future in this occupation,” said Shakya. “But there is a huge scope of employment in this sector with possibilities of exporting custom and contemporary jewelleries to the international market.”
About five years ago, Negosida had taken an initiative to train local youths in jewellery works. However, the plan could not draw enough response. Nepal has been exporting silver jewelleries and utensils in the international market, but exporters have not been able to attract buyers for gold jewelleries due to lack of competent workers, new technology and government policies to boost export. “We are unable to export jewelleries, but many goldsmiths in India, who earlier worked in Nepal, are designing Nepali styles and exporting to the international market,” said Gupta.
Gold at Rs 44,925
Following the international market trend, gold price on Sunday increased to a new high of Rs 44,925 per 10 gm (Rs 52,400 per tola), up by Rs 130 per 10 gm compared to the Friday’s price of Rs 44,795 per 10 gm. The price has increased by Rs 2,660 per 10 gm since last Sunday. The precious yellow metal was traded at Rs 42,265 last Sunday. The trend of investing in gold is increasing with no sign of improvement in the financial crisis in Europe and the US. “Gold price has increased from $1,843 to $1852.10 per ounce,” said Tej Ratna Bajracharya, president of Negosida, adding that it may take around a week for correction in the gold market.
Nepal Electricity Authority (NEA) gets Rs 840million from CIT
Cash-strapped Nepal Electricity Authority (NEA) is getting Rs 840 million loan from the Citizen Investment Trust (CIT) after the government guaranteed repayment. The power utility plans to use the loan to pay bills of electricity import from India.
NEA had sought Rs 1.5 billion from CIT, but the government guaranteed only the amount needed to clear the power import bill.
NEA has to pay IRs 520 million to India for electricity import from the eastern part of Nepal. Bihar Electricity Board has been asking NEA to pay the dues at the earliest. “We are receiving the amount equivalent to our import bill,” said NEA Executive Director Dipendra Nath Sharma.
Nepal has been importing 70MW of electricity from Bihar, India. As per the agreement, NEA has to pay Rs 150 million every month through the letter of credit. With NEA importing more than the agreed volume of power from Bihar lately, the dues went on rising. “Now, we have to pay Rs 300 million every month,” said Sharma.
As NEA has already paid Rs 50 million, Sharma said the chances of India cutting off the power supply immediately are slim. Bihar Electricity Board had warned of cutting off the power supply if NEA failed to pay dues.
NEA’s cumulative loss has reached to a whopping Rs 28 billion. It incurred a loss of Rs 6 billion in the last fiscal year alone. As a part of reforms in NEA, the system of energy minister becoming its chairman was recently changed and an executive director was appointed through free competition.
The only power utility of the country is now developing a package of financial restructuring. One of the key components of the measure is hiking electricity tariff. The tariff has not been revised for the last decade. “It is necessary to hike electricity tariff for further reforms,” said Sharma.
Deputy Prime Minster and Finance Minister Bharat Mohan Adhikari, who was also looking after the Engery Ministry, had scraped the electricity charge commission while presenting NEA reform measures in the parliament. “Hiking electricity tariff in absence of the commission makes the reform process difficult,” said Sharma.
NEA has said it recovered Rs 230 million in electricity bill dues from various government offices. Government offices still owe Rs 660 million to NEA in electricity bill dues. The power utility body has been cutting off power lines to those not clearing dues. Likewise, NEA has also taken austerity measures by reducing costs related to directors of NEA including allowance, telephone bills and vehicle costs. It plans to cut down expenses on various committees and sub-committees to be formed in NEA. “We are also planning to sell expensive vehicles,” said Sharma. Top officials of the Energy Ministry and NEA have already announced that they would not take facilities of expensive vehicles.
NEA had sought Rs 1.5 billion from CIT, but the government guaranteed only the amount needed to clear the power import bill.
NEA has to pay IRs 520 million to India for electricity import from the eastern part of Nepal. Bihar Electricity Board has been asking NEA to pay the dues at the earliest. “We are receiving the amount equivalent to our import bill,” said NEA Executive Director Dipendra Nath Sharma.
Nepal has been importing 70MW of electricity from Bihar, India. As per the agreement, NEA has to pay Rs 150 million every month through the letter of credit. With NEA importing more than the agreed volume of power from Bihar lately, the dues went on rising. “Now, we have to pay Rs 300 million every month,” said Sharma.
As NEA has already paid Rs 50 million, Sharma said the chances of India cutting off the power supply immediately are slim. Bihar Electricity Board had warned of cutting off the power supply if NEA failed to pay dues.
NEA’s cumulative loss has reached to a whopping Rs 28 billion. It incurred a loss of Rs 6 billion in the last fiscal year alone. As a part of reforms in NEA, the system of energy minister becoming its chairman was recently changed and an executive director was appointed through free competition.
The only power utility of the country is now developing a package of financial restructuring. One of the key components of the measure is hiking electricity tariff. The tariff has not been revised for the last decade. “It is necessary to hike electricity tariff for further reforms,” said Sharma.
Deputy Prime Minster and Finance Minister Bharat Mohan Adhikari, who was also looking after the Engery Ministry, had scraped the electricity charge commission while presenting NEA reform measures in the parliament. “Hiking electricity tariff in absence of the commission makes the reform process difficult,” said Sharma.
NEA has said it recovered Rs 230 million in electricity bill dues from various government offices. Government offices still owe Rs 660 million to NEA in electricity bill dues. The power utility body has been cutting off power lines to those not clearing dues. Likewise, NEA has also taken austerity measures by reducing costs related to directors of NEA including allowance, telephone bills and vehicle costs. It plans to cut down expenses on various committees and sub-committees to be formed in NEA. “We are also planning to sell expensive vehicles,” said Sharma. Top officials of the Energy Ministry and NEA have already announced that they would not take facilities of expensive vehicles.
Int’l air carriers see boost in passenger movement
With more Nepalis departing for foreign employment and increased tourist movement, international airlines operating in Nepal saw a 19.39 percent rise in passenger movement in the first six months (Jan-June) of 2011 compared to the same period last year.
Tribhuvan International Airport (TIA), the sole international airport of Nepal, reported that passenger volume in the first six months reached 1,286,470 against 1,140,142 in the same period last year. “The ongoing Nepal Tourism Year (NTY) has contributed to the growth,” said Dinesh Prasad Shrestha, deputy director general at Civil Aviation Authority of Nepal (CAAN).
Thanks to NTY, tourist arrivals by air increased 25 percent in the first half of 2011. Nepal Tourism Board’s statistics show that a total of 245,363 tourists entered Nepal via air over the period against 196,319 last year.
The increased seat demand has also prompted international carriers to increase their flight frequency.
A total 10,827 international flight movements were recorded over the period against 9,068 in the same period last year. According to Shrestha, increased departure of Nepali migrant workers boosted airlines’ passenger movement. “The international airlines movement has exceeded over 70 flights per day.”
TIA statistics show that Jet Airways, Air Arabia, Spice Jet, Fly Dubai and Etihad Airways saw the strongest growth in passenger movement in the first half of 2011. Jet Airways topped the chart, carrying 139,083 passengers during this period, followed by Qatar Airways and Nepal Airlines Corporation (NAC).
Jet saw a growth of 15.18 percent, while Qatar’s passenger movement fell 9.55 percent in the first six months. Spice Jet, low-cost airline from India, has made an impressive beginning in the Nepali skies. The airline that entered Nepal in October 2010 carried 80,165 passengers, placing it among the top five international carriers.
The entry of more Indian airlines in Nepal saw the Indian Airlines losing passengers. As per TIA statistics, Indian Airlines’ passengers came down by 23.41 percent in the first half of 2011.
Increased passenger movement, however, has not brought any cheers to the national flag carrier NAC. It slipped to the third position in terms of passenger movement. It recorded a negative growth of 15.27 in the first six months.
TIA’s statistics throw interesting facts about airlines from the Middle-East. New entrants like Etihad Airways, Air Arabia are making impressive progress, but old players like Qatar Airways and Gulf Air saw decline in their passenger movements.
Air Arabia saw a 26.95 percent growth in passenger movement, while Etihad Airways registered 28.28 percent growth. However, Gulf Air posted a negative growth with the number of passengers dropping by 28 percent. Airlines from the Middle-East are heavily dependent of Nepali migrant workers.
Passenger movement in major airlines
Top Ten Airlines
Airline 2011(First 6months)
Jet Airways 139,083 +15.18
Qatar Airways 124,957 -9.55
Nepal Airlines 102,481 -15.27
Air Arabia 96,610 +26.95
Spice Jet 80,165 ...........
Thai Airways 75,054 - 14.01
Fly Dubai 73,132 +141.67
Gulf Air 70,065 -28.82
Etihad Airways 63,170 +28.28
Air India 61,558 -23.41
(Source: TIA)
Tribhuvan International Airport (TIA), the sole international airport of Nepal, reported that passenger volume in the first six months reached 1,286,470 against 1,140,142 in the same period last year. “The ongoing Nepal Tourism Year (NTY) has contributed to the growth,” said Dinesh Prasad Shrestha, deputy director general at Civil Aviation Authority of Nepal (CAAN).
Thanks to NTY, tourist arrivals by air increased 25 percent in the first half of 2011. Nepal Tourism Board’s statistics show that a total of 245,363 tourists entered Nepal via air over the period against 196,319 last year.
The increased seat demand has also prompted international carriers to increase their flight frequency.
A total 10,827 international flight movements were recorded over the period against 9,068 in the same period last year. According to Shrestha, increased departure of Nepali migrant workers boosted airlines’ passenger movement. “The international airlines movement has exceeded over 70 flights per day.”
TIA statistics show that Jet Airways, Air Arabia, Spice Jet, Fly Dubai and Etihad Airways saw the strongest growth in passenger movement in the first half of 2011. Jet Airways topped the chart, carrying 139,083 passengers during this period, followed by Qatar Airways and Nepal Airlines Corporation (NAC).
Jet saw a growth of 15.18 percent, while Qatar’s passenger movement fell 9.55 percent in the first six months. Spice Jet, low-cost airline from India, has made an impressive beginning in the Nepali skies. The airline that entered Nepal in October 2010 carried 80,165 passengers, placing it among the top five international carriers.
The entry of more Indian airlines in Nepal saw the Indian Airlines losing passengers. As per TIA statistics, Indian Airlines’ passengers came down by 23.41 percent in the first half of 2011.
Increased passenger movement, however, has not brought any cheers to the national flag carrier NAC. It slipped to the third position in terms of passenger movement. It recorded a negative growth of 15.27 in the first six months.
TIA’s statistics throw interesting facts about airlines from the Middle-East. New entrants like Etihad Airways, Air Arabia are making impressive progress, but old players like Qatar Airways and Gulf Air saw decline in their passenger movements.
Air Arabia saw a 26.95 percent growth in passenger movement, while Etihad Airways registered 28.28 percent growth. However, Gulf Air posted a negative growth with the number of passengers dropping by 28 percent. Airlines from the Middle-East are heavily dependent of Nepali migrant workers.
Passenger movement in major airlines
Top Ten Airlines
Airline 2011(First 6months)
Jet Airways 139,083 +15.18
Qatar Airways 124,957 -9.55
Nepal Airlines 102,481 -15.27
Air Arabia 96,610 +26.95
Spice Jet 80,165 ...........
Thai Airways 75,054 - 14.01
Fly Dubai 73,132 +141.67
Gulf Air 70,065 -28.82
Etihad Airways 63,170 +28.28
Air India 61,558 -23.41
(Source: TIA)
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