Tourist flow to eastern hills rises

With the beginning of the new tourist season, the inflow of tourists to the eastern hills has increased. The number of tourists heading towards Kumbhakarna, Makalu, and Kanchanjunga mountain base camps has increased significantly in recent days, thanks to the improvement in weather after the rainy season. Compared to the previous year, tourist arrival here had delayed for the long rainy season. Bansatapur, which is the main route to the Kumbhakarna, Makalu, and Kanchanjunga base camps started to witness the entry of foreign and domestic tourists from last week. With this, the local tourism business has also boomed. Hotels and guest houses of Mudeshanischare, Chauki, Mangalbare and Gufabazaar are crowed, while all big hotels are packed. “Arrival of foreign tourists too is growing,” said Pemba Bhotia, proprietor of Yak Hotel. Foreign tourists are coming from countries like Germany, Nigeria, Norway, UK, USA, India, Portugal and Australia. Similarly, domestic tourists come from places like Ilam, Jhapa, Kathmandu, Makawanpur, Chitwan, Butwal, Biratnagar and Dharan. Nepal Tourism Board has included this area as one of the top five tourist destinations of the country. It is famous for having 28 types of rhododendron flower. The area is witnessing a growth in the number of visitors for the last two years. It has emerged a destination for educational tour, observation tour to farmers for agriculture and animal husbandry, and biodiversity and rhododendron study. “We are seeing the arrival of foreigners every day,” said Prakash Shrestha, member of the Tourism Development and Promotion Committee, Terhathum. He said with the number of tourists increasing, there is a need for developing infrastructure by local tourism entrepreneurs to hold tourists for a longer time. After the availability facilities such as electricity, telephone, internet and drinking water, tourists have started to visit even remote villages. According to Govinda Dhungana of the committee, 28 types of rhododendron, Gupha Pokhari, Tinjure Hill, rear bids and culture of communities like Yakkha, Tamang, Magar, Newar, Gurung, Sherpa, Newar and Limbu are among the major attraction of the place. The area is witnessing a growth in the number of visitors for the last two years

Ncell festive scheme

Ncell has launched a new promotional campaign named “Khusiko Bahar, Ncell ko Upahar”, under which Ncell customers can receive various gifts. The campaign comes into effect from October 30 and both existing and new Ncell customers can subscribe to it for free. Upon subscribing, the customers will receive a guaranteed gift, which range from internet package to bonus balance to night talk time to SMS and MMS, Ncell said in a statement. All they need to do is dial 17100. The volume of gift would vary from customer to customer, and subscribers need to use thus received facility within a day, that is until 12 midnight. After midnight, the previous day’s gift will collapse, but they will again get the same gift valid for another 24 hours. Customers will continue to get the gift every day throughout the campaign period. The campaign will run for 30 days and all pre- and post-paid subscribers can take part. (PR)

Discount for Visa cardholders

People possessing Visa cards will enjoy shopping at discounted prices at all Bhat-bhateni Superstores during this festival season. The Superstore, in association with Visa Worldwide Pte Limited, will provide a discount of 5 percent to customers. This offer will be effective from November 1 to January 31, 2014. Visa cardholders will get the discount at all six outlets of Bhatbhateni Superstores. There are five Bhat-Bhateni stores in Kathmandu and one in Pokhara.

Qatar Airways joins oneworld grouping

Qatar Airways has become a part of the oneworld, adding one of the world’s fastest growing and most highly rated airlines to the world’s fastest growing and most highly rated global airline alliance. From its first flights since Wednesday morning Qatar Airways will be offering oneworld’s full range of services and benefits. It joins oneworld just one year after receiving its invitation to join, which makes its induction into oneworld one of the fastest in the alliance’s history. A more typical timeline for an airline to comply with the many membership requirements of oneworld is 18-24 months. (PR)

Koirala inaugurates meat mart

Balkhu Meat Mart, a one-stop shopping destination for meat items, has opened at Balkhu in Kathmandu. Minister for Finance Shankar Prasad Koirala inaugurated the store amid a function. The Rs 40-million meat mart occupies an area of 8 ropanis. It stocks chicken, duck, goat and ostrich meat, among others. The store also sells eggs and a wide variety of sea food. Speaking at the inaugural ceremony, Minister Koirala lauded the initiative of the private sector for extending a hand in uplifting the agro sector. “This is a lesson for government agencies, local administrations and financial institutions. Apart from promoting the agro business, it will also benefit consumers with the health factor,” said Koirala. The minister added that the shift in focus of banks and financial institution towards the agro sector too had contributed to the opening of farmbased businesses. “The central bank has made it mandatory for commercial and development banks to direct at least 12 percent of their total loan investment to the agriculture sector,” said Koirala. This was also crucial in promoting such businesses, he added. Newly opened Balkhu Meat Mart at Balkhu vegetable market in Kathmandu on Tuesday. POST PHOTO

Barred from office, DDC GM resigns

Dairy Development Corporation (DDC) General Manager Siya Ram Prasad Singh, who has been barred by the DDC’s four employees’ unions from entering his office for the last one month, resigned from his position on Tuesday. The unions have accused him of embezzling a large amount of the public enterprise’s money. Singh said he submitted his resignation to the Ministry of Agriculture Development. “I am compelled to resign from my current position due to the obstruction by the unions for the last one month,” he said. Singh accused the employees of violating the court’s order. “Although the Appellate Court on October 3 had issued an order to the unions to allow me to work as the DDC chief, the workers defied the order,” he said. Singh said the workers even disobeyed the MoAD’s order. “Following the court’s order, the ministry also asked the workers to allow me to resume official work. But they violated the ministry’s order too,” he said. The employees have charging Singh with trying to embezzle a huge amount of money by overvaluing costs for the construction of a production plant in Khumaltar, and overvaluing the cost of a powdered milk plant to be purchased from Chitwan Milk. Singh has also been accused of approving Rs 320 million in contrast to the proposed Rs 80 million for the construction of the Khumaltar plant, attempting to purchase the Chitwan Milk plant for Rs 1.12 billion although the cost estimated four years ago was just Rs 560 million. The unions have also charged Singh with approving a consultancy fee of Rs 14.4 million to the National Engineering Consultancy in Jwagal, Lalitpur, without taking the opinion of the technical management. But Singh said he had taken the decisions with consent from the DDC board and staff concerned. “In almost all the decisions, I took the recommendation of the concerned DDC bodies,” said Singh, terming the employees’ accusations baseless. The unions also accused Singh of bribing high-level officials at the Ministry of Agriculture Development to continue in his position even after his retirement age. Singh was supposed to retire on April 16. The employees had also filed complaints at the Commission for Investigation of Abuse of Authority, the National Vigilance Centre and the Prime Minister’s Office.

Govt undertakings told to ease supply

The government has directed the chiefs of the government undertakings concerned to make supply management effective targeting the upcoming festivals — Tihar and Chhath — and the Constituent Assembly (CA) election. The instruction has come at a time when the price of daily commodities is skyrocketing. Tihar is staring within a week, while the CA election is schedule for November 4. Krishna Hari Baskota, secretary at the Prime Minister’s Office, directed Salt Trading Corporation (STC), National Trading Limited (NTL), Nepal Food Corporation (NFC) and Dairy Development Corporation (DDC) to make supply effective after monitoring fair price shops operated by them focusing the festivals. Baskota, along with Ministry of Commerce and Supplies Secretary Madhav Prasad Regmi, Director General of the Department of Commerce and Supply Management Narayan Prasad Bidari and other government officials had inspected temporary fare price shops opened at Surya Binayak, Koteshwor, Jawalakhel, Balkhu, Kalimati, Teku and Ramshahapath. The shops were opened with a target to sell daily commodities at cheaper rates during the festival period. STC General Manager Urmila Shrestha said the supply of sugar and salt is smooth. “STC has a stock of 20,000 metric tonnes of sugar and 80,000 metric tonnes of salt,” said Shrestha. NFC General Manager Shiva Hari Shrestha also said they have stock of 164,000 quintal of rice. Through the fair price outlets, government enterprises are selling commodities like rice, edible oil, sugar, ghee, lentils, spices, LPG gas, beaten rice, while the NTL is also selling electronic appliances. The outlets are selling ghee with a discount of Rs 10 per kg, rice with a discount Rs 2 per kg and sugar with a discount of Rs 5 per kg. NTL General Manager Narayan Narayan Mehta said they would continue the fair price shops after Chhath too. NTL is selling rice cookers, irons, garment, and solar equipment apart from foodstuffs. Through the fair price shops, NTL has recorded Rs 13.5 million transactions this season. Among the four government undertakings, STC made the highest business of Rs 60 million, while NFC recorded Rs 20 million and DDC Rs 4 million. STC has 24 fair price outlets across the country. After the monitoring, Regmi assured to open shops even during public holidays. He said the government would also consider running such shops round the year. The instruction has come at a time when the prices of daily commodities are skyrocketing ahead of the Tihar festival

ADB to provide $1.5b to Nepal under new partnership plan

The Asian Development Bank (ADB) has approved a new Country Partnership Strategy (CPS) with Nepal that will anchor its assistance over the next five years. Under the new CPS, the ADB proposes to provide funding to Nepal in the amount of under US$ 1.5 billion over the next five years. The ADB expects to raise double this amount from other partners from both the private and public sectors. The ADB, one of Nepal’s largest donors, will extend long-term public and private sector finance for capital investment in the areas of transport, energy, water and other basic public services such as education and skills development. “The government and the ADB worked very closely together to define a strategic framework that will allow the ADB and others to join up in funding the type of investments that can transform Nepal. The strategic work was done in close consultation with key public agencies and private enterprises, as well as with civil society and other development partners. What we now need is to convert this into projects that ensure value for money and deliver development effectiveness,” said Juan Miranda, director general of the ADB’s South Asia Department. The ADB’s five-year strategy will tackle critical constraints such as power shortages, poor connectivity and water supply, among others, through high-priority energy sector investments to strengthen domestic energy security and promote exports through public-private partnerships. Integrating Nepal with the regional and world economy by expanding its airports and trans-boundary road networks and modernizing customs will also be a focus of the ADB’s assistance in the next five years, said the ADB in a press statement. According to the ADB, improving urban infrastructure such as water supply and sanitation in centres such as Kathmandu is another critical activity. The ADB will also help with irrigation and watershed improvement to boost productivity and commercialization. The new CPS has set the target of completing the much-talked about Melamchi Tunnel by 2016. The new strategy also places significant focus on governance, financial management, climate change, reforms for private sector investment and sustainability, institutional development and better project implementation performance; but it will have the flexibility to respond to emerging needs in the business environment during the political transition. New Country Partnership Strategy ð. To support the Strategic Road Network in rural and urban areas and upgrade key airports. ð. To complete the Melamchi Tunnel and connecting distribution systems by 2016. ð. To support implementation of the Agriculture Development Strategy. ð. To boost private sector development by helping selected public-private partnership energy projects and improving the environment for private and foreign direct investment.

NTcommitted royalty issue resurfaces

The issue of committed royalty and third generation (3G) frequency fee of Nepal Telecom (NT) has resurfaced with the Nepal Telecommunications Authority (NTA) issuing it another order to clear outstanding royalty payments and frequency fees. The state-owned telecom giant owes Rs 3.27 billion in committed royalty, around Rs 951 million in 3G spectrum fee and an unspecified sum in VSAT spectrum charge, said the NTA. The NTA has no idea how much NT must pay in VSAT frequency fee as the government had waived the charges 14 years ago for spreading telecom services to rural areas. According to NTA Spokesperson Kailash Prasad Neupane, they told NT to pay the remaining committed royalty after consulting with legal advisers following a board decision. “NT had paid only 4 percent of its total income as royalty even though it should have paid the committed royalty like Ncell,” he said. The NTA should have collected the committed royalty by 2008, but NT had been refusing to pay it citing legal reasons. As per the licence issued to NT, it is required to pay the committed royalty like Ncell and United Telecom Limited (UTL). However; it had paid only 4 percent of its annual income as royalty for the first 10 years of operations (1998-99 to 2007-08). “We have paid the royalty as per the provision of the Telecommunications Act,” said NT Spokesperson Guna Keshari Pradhan. She added that with the committed royalty issue requiring indepth consultation, they would reach a decision after a necessary study of government provisions. Of the total payable royalty, NT has paid the government Rs 635.19 million under the 4 percent plan. An NT official said that they were insisting on the 4 percent royalty deal as revenues from its mobile service was little in the early years and technology was expensive. NT earned Rs 15 billion from its mobile service in the first 10 years. When NT obtained a licence for GSM mobile service in 1999, it had agreed to pay the licence fee, licence renewal fee and the royalty amount to be pledged by future mobile service operators. Hence, NT has to pay a total of Rs 3.90 billion (as committed by Ncell) for the fiscal years 1998-99 to 2007-08. NT started paying the licence renewal fee of Rs 2.13 billion in instalments from the last fiscal year as per the cabinet’s decision. Similarly, the government had renewed UTL’s licence last year by allowing it to pay the committed royalty in instalments. The NTA revived NT’s committed royalty issue as its adhoc committee received legal backing to make policy decisions in the absence of its chairman. NT owes Rs 3.27b in committed royalty, around Rs 951m in 3G spectrum fee and an unspecified sum in VSAT spectrum charge

Nepal crawls up 3 spots in Doing Business Index

Nepal has crawled up the Doing Business Index by reducing the hassles involved in registering a company. According to the Doing Business Index (DBI) 2014 released by the World Bank and International Finance Corporation on Tuesday, the country rose three places to the 105th position among 189 global economies. Nepal ranked 108th in 2013 and 107th in 2012. Among the 10 indicators under which global economies are evaluated, Nepal did better on two fronts—starting a business and getting electricity. DBI 2013 shows that starting a business in Nepal has become easier over the last year due to a reduction of the administrative processing time at the company registrar and the establishment of a data link between agencies involved in the incorporation process. Nepal introduced electronic filing of documents, reducing registration time from 15 days to seven, the report said. Potential investors now have to complete seven procedures and spend 17 days to register their company before starting a business. In South Asia, it takes an average of 17.2 days to register a company. “We are inspired to know that our ranking has gone up. This shows that even a single reform can actually make a big difference,” said Krishna Gyawali, secretary at the Ministry of Industry. “However, sustainability of the system will be a challenge for us.” According to Shankar Aryal, registrar of the Office of the Company Registrar, the office has registered 337 companies and 1,200 companies have been approved for online registration since online registration started in February. “The office has made it mandatory for new companies to be registered online from Oct 20.” Likewise, Nepal has made a slight improvement in terms of providing electricity. The country scored 98 in this category, up from 99 in 2013. Potential investors have to spend at least 70 days to complete the five procedures necessary to get electricity. In South Asia, the average is 145 days and six procedures. However, obtaining a construction permit has become more difficult with Nepal slipping to the 105th position from the 97th position previously. Potential investors have to spend 115 days and complete 13 procedures to get a construction permit. This is still a little better than the South Asian average of 193.3 days and 16 procedures to get a building licence. According to DBI 2013, Nepal has not made any reforms with regard to paying taxes, trading across borders, enforcing contracts and resolving insolvency. Nepal slipped to 177 in the trading across borders indicator in DBI 2014 from 173 earlier. Exporting a standard container requires 11 documents, takes 42 days and costs US$ 2,295. In South Asia, investors need an average of eight documents, have to spend 33 days and pay US$ 1,787 per container. For imports, a container requires 11 documents, takes 39 days and costs US$ 2,400, the report said. The country has remained unchanged at the 80th position in protecting investors. However, Nepal slipped to 126 from 121 with regard to paying taxes. “An improvement in the starting business index has contributed to a better overall doing business environment in Nepal. But the report has pointed out that the situation is poor compared to last year,” said Chief Secretary Lilamani Poudel. According to him, Nepal has started e-bidding to make obtaining construction permits easier, but that has not been mentioned in the report. Similarly, access to finance is 80 percent in Nepal, nearly double the South Asian average; but according to the report, Nepal shows poor performance in issuing credit. “However, as the transit treaty has remained pending, we should admit that we have not done well in providing transit facilities,” Poudel said. “As other countries have done far better than us, we have to find out what went wrong. We need to compare what we did and what the others did.” Among the region’s economies, Nepal ranks third among the eight surveyed, ahead of Sri Lanka and the Maldives. Singapore tops the global ranking, and following it in the list of the top 10 economies are Hong Kong, New Zealand, the US, Denmark, Malaysia, South Korea, Georgia, Norway and the UK. Among the 10 indicators, Nepal did better on two fronts—starting a business and getting electricity

UAE team in Nepal to promote World Expo

A high-level delegation led by the United Arab Emirates’ (UAE) Labour Minister Sakor Ghobash Saeed Ghobash arrived here on Monday on a three-day official visit. The Ministry of Foreign Affairs (MoFA) said Ghobash is in Nepal to promote the World Expo to be held in Dubai in 2020. He is also the UAE’s envoy for the expo. Although his main objective is to promote the expo, he is expected to hold talks with top Nepali officials on the issues of bilateral relations, including the issues related to Nepali migrant workers. The three-member delegation also includes the UAE’s ambassador to Nepal stationed in India. “The UAE minister is scheduled to meet Chairman of Interim Election Government Khil Raj Regmi and other ministers,” said Kali Prasad Pokharel, Chief of Protocol at MoFA. Minister Ghobash is scheduled to hold separate meeting with Foreign Minister Madhav Prasad Ghimire and Labour Minister Chhabi Raj Panta on Tuesday. Minister Ghimire will also host a luncheon on the same day in the honor of the UAE delegation. The Ministry of Labour and Employment has started drafting agendas for the talks between the two labour ministers. Ministry officials said the discussion will be focused on major problems engulfing the foreign employment sector and seeking jobs for more skilled migrant workers. “There will be discussions on a wide range of agendas surrounding the foreign employment sector,” said Suresh Man Shrestha, secretary at teh MoLE. He, however, said the ministry has not planned to sign any agreement as the minister is visiting for a different purpose. Nepal Association of Foreign Employment Agencies (NAFEA) has sent a list of suggestions to be tabled during the meeting between the ministers on Tuesday. The MoLE has urged the recruiting agencies to provide the agendas for the discussion. NAFEA Chairman Bal Bahadur Tamang said there is a need for institutionalised efforts from the government of both countries to end technical difficulties in visa issuance. “The current provision is such that the UAE practices different visa issuance mechanism while issuing employment approval for private companies, government and semi-government sectors and free zone. The provision is even not same in all the provinces of the UAE,” said Tamang. He said he has also suggested the ministry to push the UAE to comply with the minimum wage fixed by the Nepali government and increase the quota for better jobs. The UAE is the fourth largest work destination of the Nepali migrant workers after Malaysia, Qatar and Saudi Arabia, with presence of around 200,000 Nepalis. Although the condition of Nepali workers in the UAE is comparatively better than in other Gulf countries, stakeholders cited the need for a greater coordination between the two governments to protect the minimum rights of the workers, both male and female, working in construction, security, transportation, and entertainment sectors. They said the UAE should do more to protect the human rights, safety and security of Nepali workers. The team is also expected to hold talks with top Nepali officials on issues related to migrant workers

UAE team in Nepal to promote World Expo

A high-level delegation led by the United Arab Emirates’ (UAE) Labour Minister Sakor Ghobash Saeed Ghobash arrived here on Monday on a three-day official visit. The Ministry of Foreign Affairs (MoFA) said Ghobash is in Nepal to promote the World Expo to be held in Dubai in 2020. He is also the UAE’s envoy for the expo. Although his main objective is to promote the expo, he is expected to hold talks with top Nepali officials on the issues of bilateral relations, including the issues related to Nepali migrant workers. The three-member delegation also includes the UAE’s ambassador to Nepal stationed in India. “The UAE minister is scheduled to meet Chairman of Interim Election Government Khil Raj Regmi and other ministers,” said Kali Prasad Pokharel, Chief of Protocol at MoFA. Minister Ghobash is scheduled to hold separate meeting with Foreign Minister Madhav Prasad Ghimire and Labour Minister Chhabi Raj Panta on Tuesday. Minister Ghimire will also host a luncheon on the same day in the honor of the UAE delegation. The Ministry of Labour and Employment has started drafting agendas for the talks between the two labour ministers. Ministry officials said the discussion will be focused on major problems engulfing the foreign employment sector and seeking jobs for more skilled migrant workers. “There will be discussions on a wide range of agendas surrounding the foreign employment sector,” said Suresh Man Shrestha, secretary at teh MoLE. He, however, said the ministry has not planned to sign any agreement as the minister is visiting for a different purpose. Nepal Association of Foreign Employment Agencies (NAFEA) has sent a list of suggestions to be tabled during the meeting between the ministers on Tuesday. The MoLE has urged the recruiting agencies to provide the agendas for the discussion. NAFEA Chairman Bal Bahadur Tamang said there is a need for institutionalised efforts from the government of both countries to end technical difficulties in visa issuance. “The current provision is such that the UAE practices different visa issuance mechanism while issuing employment approval for private companies, government and semi-government sectors and free zone. The provision is even not same in all the provinces of the UAE,” said Tamang. He said he has also suggested the ministry to push the UAE to comply with the minimum wage fixed by the Nepali government and increase the quota for better jobs. The UAE is the fourth largest work destination of the Nepali migrant workers after Malaysia, Qatar and Saudi Arabia, with presence of around 200,000 Nepalis. Although the condition of Nepali workers in the UAE is comparatively better than in other Gulf countries, stakeholders cited the need for a greater coordination between the two governments to protect the minimum rights of the workers, both male and female, working in construction, security, transportation, and entertainment sectors. They said the UAE should do more to protect the human rights, safety and security of Nepali workers. The team is also expected to hold talks with top Nepali officials on issues related to migrant workers

Lama wins Bajaj scheme

KATHMANDU: Puna Bahadur Lama has become the fifth week’s winner of the Bajaj festive scheme. He has won Rs 1 million. Lama had bought a Bajaj motorcycle from HH Showroom in Teku, Kathmandu. He was selected as the winner through a lucky draw. The campaign selects a lucky winner each week for up to 10 weeks.

Mega, Placid sign pact

Mega Bank and Placid Express-USA have signed “Money Transfer Services Agreement”, under which the bank will process remittance payments sent from Placid. The alliance allows Mega to provide Placid’s services through its 28 branches and more than 1,000 Mega Remit agents across the country, a Mega Bank statement said, adding migrant Nepalis can now send their money back home safely and reliably without any hassles.

BoK offers cash, stock dividend

The 19th annual general meeting of Bank of Kathmandu (BoK) held on Monday decided to provide its shareholders 14 percent bonus shares and 0.73 percent cash dividend. The bank earned operational profit of Rs 890 million and net profit Rs 617 million in last fiscal year. Compared to 2011-12, deposits grew by 10.84 percent to Rs 27.70 billion last year, while lending was up 19.31 percent to 23.05 billion. The bank has 50 branches, 58 ATMs and 8 extension counters.

Employees’ unions press management

Employees’ unions of Rastriya Beema Sansthan (RBS) are pressuring its management to make available the “prize allowance” after it was discontinued this year following a directive of the Commission for Investigation of Abuse of Authority (CIAA). On Sunday, a delegation of the unions met RBS Administrator Ram Bahadur Khadka, asking the management to respond to the demands within Monday. The employees have been enjoying the facility for the last two decades. The then CPN-UML-led minority government had introduced such a facility in the budget. Terming the facility illegal on ground that the allowance was being given to all employees instead of the best performers, the CIAA had directed the RBS to recover more than Rs 80 million distributed until 2008 from incumbent and retired employees. The amount to be recovered has reached more than Rs 100 million, according to RBS. Khadka said the employees have been asking to find ways to make available the allowance which they have been enjoying for a long. “I have told them that I would put the matter at the board meeting,” he said. An RBS source said the employees are likely to block the RBS’s attempt to split the institution into two bodies — one looking after life insurance and another into non-life businesses.“They have hinted that splitting the RBS and assurance of continuation of prize allowance should go simultaneously,” the source said. “They have also warned of another round of strike if their demands are not addressed within the next few days.” However, the unions said that they have no plans of staging strike at least until the Constituent Assembly election. “We have signed a deal with the management and committed not to hold strike in the near future after we were assured of the fulfillment of many our demands by the Finance Ministry too,” said Tulak Prasad Dhungana, central committee member of the RBS Employees’ Union. He, however, admitted that the unions have requested the management to make arrangement for making available the facility being enjoyed for several years in whatever way possible even if it cannot be provided under current heading. The RBS used to provide the “prize allowance” to the employees ahead of every Dashain. But the management failed to distribute the amount this year after it received letters from both the CIAA and the Finance Ministry against the facility. A board meeting of the RBS on November 1, 2010, had decided to provide the facility in the range of Rs 24,000 to lower-level employees and Rs 28,000 to officerlevel employees. The average prize money the 160 employees of the RBS receive is Rs 4.1 million a year. Putting forward various demands, including the continuation of the prize money, the RBS unions had stopped its administrator from entering into his office for two and half months. Only after the latest agreement, he was allowed to do resume his work just a month ago. rbs prize allowance row Rastriya Beema Sansthan building.

NRB to re-allow dealers to issue car loans

Nepal Rastra Bank (NRB) plans to re-allow auto dealers to lend money to customers to buy their automobiles. Motor sellers had been obtaining wholesale loans from banks and financial institutions and using the cash to issue credit to their clients. A year ago, the central bank stopped them from implementing the financing arrangement. A senior NRB official said they were working on a guideline to permit auto dealers to provide financing to their customers after obtaining a licence from the central bank. “We have planned to introduce the guideline before the Tihar festival,” said the official. NRB relented under pressure from auto dealers, private sector bodies and banks to reinstate the financing facility. The central bank had banned the practice claiming that car buyers were being forced to pay more when they obtained auto loans from the dealers themselves. Under the proposed guideline, firms wishing to provide hire purchase financing will have to register themselves as a hire purchase company and have a paid-up capital of Rs 100 million. “Such companies will be allowed to charge a maximum mark-up of 3 percent on the interest they are paying their banks for the bulk loans,” said the central bank official. As such lending was being made without approval from NRB, it had termed the practice illegal. The NRB Act states that the central bank’s okay is required to carry out any kind of banking activity. NRB will issue a licence to the applicant as per clause 76 of the NRB Act which says that its approval is required to accept deposits or lend money. The clause has also given the central bank the right to set conditions and those willing to carry out banking activities have to accept them. “The interest margin and other necessary conditions will be fixed before issuing a licence,” said the official. While car sellers had been miffed when the central bank stopped them from lending money to their customers, banks said that there was less risk in issuing wholesale loans to dealers than to individual borrowers. Banks have complained that they have to spend more time when dealing with individual borrowers despite the small amount of the loan. Moreover, in case of default, the vehicle they seized from their delinquent borrowers had to be sold at scrap value. However, Anal Bhattarai, chief executive officer of Commerz and Trust Bank, said that banks issuing loans to car buyers directly was a good practice as it contributed to making the hire purchase deal cheaper. According to auto dealers, a majority of automobiles are sold under hire purchase arrangement. In the last fiscal year, 208,483 motor vehicles were registered at the Department of Transport Management. Motorcycles made up the largest number with 175,381 units registered followed by tractors and power tillers and cars, jeeps and vans. A total of 1.55 million vehicles have so far been registered at the Department of Transport Management. NRB relented under pressure from auto dealers, private sector bodies and banks to reinstate the financing facility Nepal Rastra Bank.

Ministry speeds up pact signing process for the ailing Nepal Airlines Corporation (NAC)

The Finance Ministry has fasttracked the process of signing loan and grant agreements with China to procure airplanes for the ailing Nepal Airlines Corporation (NAC). The Finance Ministry’s move follows the request from the Ministry of Culture, Tourism and Civil Aviation to proceed ahead with the deal after the Civil Aviation Authority of Nepal (CAAN) issued type-certificate to Chinese-made MA60 aircraft last week, allowing the plane to enter the Nepali skies for the first time for civilian transport. China has pledged a 19-seater Harbin Y-12e and a 58-seater MA60 (Modern Ark 60) turboprop planes in grant, and the government plans to buy four more aircraft — three Harbin Y-12e and an MA60 — taking soft loans from the China EXIM Bank. “We have to sign two separate agreements for loan and grant. We have sent the drafts of the two agreements to the tourism and the law ministries for their comments and language to be used in the draft,” said Finance Secretary Shanta Raj Subedi. He said the exact amount of the loan to be taken from the Chinese bank and the interest rate are yet to be fixed. Tourism Ministry officials estimate that the four aircraft could cost $35 million for a combined package that includes spare parts and pilot training, among other facilities. The Type Certification Board of the CAAN after a two-week China visit had submitted its report to its Director General Ratish Chandra Lal Suman in mid-September, recommending that the MA60 aircraft’s technical and other capabilities compliances “are reliable”. “We decided to proceed ahead with the pact after the CAAN confirmation that the proposed Chinese jets are fit for the Nepali skies,” Subedi said. Some analysts, however, have raised questions over the MA60’s airworthyness as it has not yet been certified by the Federal Aviation Administration’s (FAA) Federal Aviation Regulations (FAR). Sources said the Nepal government needs to finalise the deal before the end of the Chinese fiscal year. China’s fiscal year begins from January 1 and ends on December 31. On November 29, 2012, the NAC had signed a commercial agreement with the AVIC International Holdings, a Chinese government undertaking, to procure the six aircraft. An understanding was reached that the NAC will receive two aircraft in grant within two months after finalising the loan agreement, and the rest after five months of the first delivery. China has in principle agreed to the proposal of the Nepali side to provide a five-year grace period for the loan and interest repayment. The Nepali side had also proposed a 30-year payback period for the loans. On August 7, 2011, NAC had written to the Finance Ministry, requesting it to purchase eight aircraft in foreign grants. In November 2011, the ministry requested China to provide the aircraft either in grant or under soft loans. The Chinese side responded positively, expressing their readiness to provide some aircraft in grant and some under soft loans. Subsequently in December 2011, the Chinese government formally informed the Finance Ministry that three aircraft would be provided to the NAC in grant and the others under soft loans. However, the plan was revised, with the Chinese government deciding to gift only two aircraft in grant. An NAC technical team then were sent to China for the inspection of the aircraft, which reported that the airplanes were fit for the Nepali skies. However, the process landed in controversy, with the Commission for Investigation of Abuse of Authority being called to probe alleged irregularities. The government revived the plan on October 17, 2012, under its Immediate Governance and Economy Reform Action Plan 2012. The Canadian International Development Agency had donated seven Twin Otters to NAC from 1972 to 1979. However, the corporation dœs not have a single plane to serve its domestic sector now. According to the NAC, two Twin Otters can be put back in service after maintenance. It says if it gets the Chinese aircraft, it will be able to compete with private airlines and expand its services. chinese aircraft for nac Y12E aircraft. MA60 aircraft. The Finance Ministry’s move follows the request from the Tourism Ministry to proceed ahead with the deal after CAAN issued type-certificate to Chinese-made MA60 aircraft last week

Asian Life’s new scheme

Asian Life Insurance has launched “Dampati Surakshya Jeevan Beema Yojana” which offers life insurance facilities to married couples aged over 18 years through a single policy. The new policy provides the whole insurance payment to a person in case of the spouse’s death. Similarly, the alive insured, who will not have to pay the remaining premium after the death of the spouse, will receive additional insurance payment after the maturity. Under the scheme, the company has fixed the maximum age limit of the insured at 50 years and the maturity age limit at 65 years. As of 2012-13, Asian Life has collected premium of Rs 4.77 billion, read the company’s statement.

Yamaha ‘Exchange Mela’ concludes

The “Yamaha Scooter Exchange Mela” concluded on Sunday. The four-day exchange fair organised by Morang Auto Works (MAW) witnessed 1,500 visitors and total sales of more than 345 scooters, read a company statement.

NMB, UNWFP join hands

NMB Bank has joined hands with the United Nations World Food Programme (UNWFP) with an aim to extend banking services to communities facing food insecurity in Doti district. Under the New Village Project, a programme funded by South Korean government, the bank has targeted to provide cash distribution services to over 1,600 beneficiaries in Ladagada and Pokhari VDCs that have been identified as vulnerable to food scarcity. According to the bank, it will use innovative chip-based smart card technology to introduce branchless operations to facilitate banking services in the area.

Smart Telecom festive offer

Smart Telecom has said the customers can buy its “Mahotsav Pack” at Rs 99 and avail a bonus package exceeding Rs 2,500. Once the new pack gets activated, the subscriber will receive Rs 50 as main balance plus a bonus package that includes Rs 100 on-net talk time, Rs 50 off-net talk time, and 50 on-net SMS for up to 12 months. To avail the facility, customers have to recharge the main balance with Rs 100 a month for 12 months. The same bonus package is also available to existing customers using Smart Cell’s service for the last six months.

43pc population has access to banking services

The country’s 43 percent population has access to banking services. This figure is based on the number of deposit accounts in commercial banks, development banks and finance companies compared to the population size. The figure may increase further if the deposit accounts with cooperatives, micro-finance and other financial intermediates are taken into account. The number of deposit accounts in A, B and C class banks and financial institutions (BFIs) stands at 11.40 million, according to the Nepal Rastra Bank (NRB). The number is 43 percent of the total population of 26.49 million as per Census 2012. In 2006, only 26 percent population had access to banking, according to a World Bank study. A total of 714,538 deposit accounts were added in the period between mid-January and mid-August in 2013. “With the people’s access to banking services increasing day by day, the number of deposit accounts too has increased. This is a normal growth figure,” said Bhaskar Mani Gnawali, spokesperson for the Nepal Rastra Bank (NRB). The proliferation of BFIs in the last few years also attracted people towards the formal banking channels. The number of branches of A, B and C class financial institutions has reached 2469 as of Mid-August. Also, the introduction of new technologies has enabled banks to reach far flung areas through branchless banking activities. The central bank has been encouraging BFIs to reach non-banked areas by issuing a directive which says banks can open their branch in the Kathmandu valley only after opening three branches outside. Commerz and Trust Bank Nepal CEO Anal Raj Bhattarai said the fact that 43 percent of the population has access to banking is encouraging, but more efforts have to be made to include nonbanked population. Despite increased deposits accounts, the number of loans has reached 849,000, which is 7.44 percent of the number of deposit accounts. In the first eight months of 2013, the number of loans grew by 48,510. Gnwali said the ratio of loans-to-deposit accounts is a bit lower than expected. “The growth in the number of loans was healthy until the first six months,” said Gnawali, adding the figure remained low from mid-June to mid-August as financial institutions started prioritising productive sector investment. Bhattarai underscored the need for developing banking culture among the people to make sure that they obtain loans from financial institutions. The figure may increase if accounts with co-ops, micro-finance and other financial intermediates are taken into account

Telecom operators paid Rs 1.48b in advance

Telecom companies have made advance payments amounting to Rs 1.48 billion to the government as frequency fee under the new spectrum policy, said the Nepal Te l e c o m m u• i c a t i o• s Authority (NTA). The charge is for spectrum being used by them for their 2G, 3G, WiMax, VSAT and satellite phone services. The Telecommunications Radio Frequency Distribution and Pricing Policy 2012, which was introduced last year, requires telecom companies to pay for 3G, WiMax, and VSAT spectrum by the first three months (mid-October) of each fiscal year. This is the first time that the government is collecting the frequency fee in advance. The policy has fixed the minimum, additional and maximum frequency for service operation, and telecom companies have to pay up front for the additional and maximum frequency assigned. The charges for other frequencies — minimum spectrum and microwave airwaves — have to be paid within the first six months of each fiscal year based on the previous year’s income. “Nepal Telecom (NT) and Ncell paid Rs 746.4 million and Rs 441.7 million respectively as frequency fee,” said Ambar Sthapit, deputy director of the NTA. He added that United Telecom Limited paid Rs 45 million, Smart Telecom Rs 126 million and Nepal Satellite Telecom (NST) Rs 124.4 million. NST has been using additional frequency 9 MHz over the government allocated minimum airwave. However, CG Communications (formerly STM Telecom Sanchar), which was supposed to pay Rs 19.2 million up front as spectrum fee for additional spectrum, has not done so. Sthapit said that the company would be fined 2 percent of the fee for advance spectrum. He added that if the company dœs not pay the fee plus the fine within six months, the NTA could cancel the assigned spectrum. According to the NTA, NT has been using additional and maximum frequency in the 800 MHz, 900 MHz and 1,800 MHz bands, and Ncell has been using additional spectrum in the 900 MHz and 1800 MHz bands for its GSM mobile service. NTA officials said that the charges for additional and maximum spectrum had been fixed at a higher rate to discourage hoarding. The distribution and pricing policy has fixed the charge for minimum frequency at 0.4 percent of the annual income. The government has fixed the minimum spectrum 2x6 MHz (in the 900 MHz band) and 2x9 MHz (in the 1800 MHz band) for mobile services. If a company uses additional 1 MHz in the 800/900 MHz band, it is required to pay Rs 6 million; and in the case of maximum spectrum, the fee is double (Rs 12 million) per MHz, said the NTA. NT and Ncell each paid Rs 240 million for the 2x10 MHz spectrum they are using for 3G service. NT, which is also the sole operator of WiMax service, paid Rs 120 million as frequency charge for this service, according to the NTA. The banking sector saw the addition of 4,914 new credit card holders as of mid-August this year telecoms frequency fee

Nine hotels registered in first three months of 2013/14

The number of tourist standard hotels is increasing in recent years, thanks to decline in tourist spending and easy registration process. Nine hotels were registered with the Tourism Industry Division under the Ministry of Culture, Tourism and Civil Aviation over the first three months of fiscal year 2013/14. And all of them were tourist standard. Not a single star-rated hotel was registered during the period. Hotel Yukhang in Banasthali, Himalayan Sherpa Guest House in Tatopani, Alobar 1000 Guest House in Thamel, World Heritage Hotel and Apartment in Maru, Alliance Hotel in Jorpati, Tapoban Guest House in Koteshwar, Dream Nepal Hotel and Apartment in Jyatha, Rama Inn Boutique Home in Lal Durbar Marg and GT Restaurant and Lodge in Panauti were registered with the division during the period. The government hasn´t announced new requirements for tourist standard hotels, except resorts, in the recently enforced criteria for standardization of hotels. However, Purna Chandra Bhattarai, chief of the division, said the government would strictly monitor all hotels including the tourist standard accommodation. “The number of tourist standard hotels, especially guest houses and lodges, has been increasing lately and many of them were in operation without registering with the division,” Bhattarai said. “It is good to note that tourist hotels which are already in operation have also started registration process.” Currently, Mid Group Holiday and Rara Pariyojana are doing internal preparation to star five-star hotel in Nepal. Mid Group Holiday plans to open Sheraton Hotel in Kathmandu, while Rara Pariyojana is studying the feasibility of opening a five-star hotel near Rara Lake in Mugu. Similarly, two three-star hotels - Hotel Galaxy and Hotel Shanti - are coming up. Mohan Krishna Sapkota, spokesperson of MoCTCA, said simplification of registration process is encouraging promoters of tourist standard hotels to register with the division. According to Nepal Tourism Statistics 2012, Nepal received 338,132 tourists via air a decade back and their average spending was $79.10 per day per person. Though the number of tourists arriving Nepal reached 803,092 in 2012, per day tourist spending dropped to a 16-year low of $35.60.

Economic agendas of political parties unrealistic: Experts

Experts have said the economic targets set by political parties in their election manifestos are unrealistic and hence cannot be achieved. They also lambasted the parties for not including clear economic agendas on federal set up. The targets set by the political parties on economic growth and employment and hydropower generation are more or less similar. “But all the commitments are unachievable. The parties haven´t said how they intend to achieve the targets,” economist Bishwambher Pyakuryal said. Keshav Acharya, another economist, said political parties competed with each other to make tall promises. “But they haven´t clarified how they intend to fulfill those promises,” Acharya said. Pyakuryal said the parties set the targets without studying why development goals set in the past couldn´t be achieved. “The government had targeted to harness 118 MW of hydropower in the second three-year interim plan that ended in July. But only 21 MW could be generated,” added Pyakuryal. He suggested to the leaders of political parties why the targets were not achieved. In their election manifestos, UCPN (Maoist) and Nepali Congress have promised to end load-shedding in three years. But experts say load-shedding can´t be completely eliminated even if the much-touted Upper Tamakoshi (456 MW) starts generation within the targeted timeframe. Officials of Ministry of Energy say energy deficit in wet months would be around 450 MW by the end of next three years. Power shortage during dry months would be even higher. “The political parties are also silent on how they intend to mobilize resources to resolve chronic labor problems and formulate necessary laws to encourage investment from the private sector,” said Acharya. Political parties have set ambitious agendas like achieving double-digit economic growth, graduating to the status of developed country within four decades, generating 300,000 new jobs every year and providing minimum 100 days employment to youths. Commenting on those commitments, Pyakuryal said it would be meaningless to run after figures instead of focusing on sustainable development. “Our per capita income increased by only US$ 62 over the past four decades. But parties have said they would double per capita income within a decade,” said Pyakuryal. “Instead of making tall promises, the parties should have included realistic plans that can be achieved.” Past experiences show parties´ commitments won´t materialize as frequent changes in government mean parties won´t be able to implement their programs. Pyakuryal suggests political parties to agree on a common minimum economic agendas and targets for coherent development so that the development activities and programs won´t change despite change in government. Acharya said political parties have not clarified what economic benefits that the country will achieve by adopting the forms of governance proposed by them.

Developer may not meet target: Govt officials

Amid delay in the construction of the Kathmandu- Hetauda Tunnel Highway, government officials have said the developer will find it hard to achieve the target of completing 25 percent of the earthwork and the construction of the retaining structure and culverts by December 2013. The deadline for the work is mentioned in the agreement between the developer — Nepal Purbadhar Bikas Company Limited (NPBCL) — and the government in May. The company plans to start the construction from November 11. As it is yet to acquire approval for the design of pavements, tunnels and bridges from the government, the officials said the delay in immediate approval of the design may push the planned construction date further away. Without the design approval, the company cannot start the construction, according to the agreement. After the company submits the design plan, the government should either approve or disapprove it within 21 days. “The ministry will issue the approval for the construction only after verifying the design,” said Tulasi Prasad Situala, secretary at the Ministry of Physical Infrastructure and Transport (MoPIT). NPBCL President Kush Kumar Joshi said they would seek approval for the design very soon. “We have planned to start the construction work from an access road connecting the tunnel portal area which dœs not need design approval first from the government,” he said. As per the agreement, the company has to submit the project completion schedule for necessary review while submitting the design. The tunnel highway, which links the Capital with Hetauda within an hour’s drive, is targeted for completion by December 2016. The 58- km four-lane highway will have three tunnels. MoPIT officials said the company will have to complete 40 percent work on bridges and retaining wall by September 2014, 75 percent of the earthwork, retaining wall and culverts by 2014- end and 33 percent of the tunnel by February 2015. kathmandu-hetauda tunnel highway A computer-generated graphic of the KTM-Hetauda Tunnel Highway.

Banks’ NPL at 2.5pc: WB

Non-performing loans (NPL) of commercial banks have decreased to a 10-year low, loan exposure to real estate has declined to “historically low levels”, and credit to deposit ratio has come down notably, a World Bank report has said. A significant easing of liquidity pressure, rising profits, and improved capital position are other factors that show the ongoing financial consolidation in the sector is paying off, according to the report. The report titled “Nepal Development Update” states that NPL of commercial banks came down to 2.5 percent in fiscal year 2012-13, the lowest in a decade. Loans not repaid timely are called NPL. Six banks (28 percent of the system) reported NPL in excess of 3 percent, of which only two (8 percent of the system) had NPL in excess of 5 percent, including one statecontrolled bank (Agriculture Development Bank Limited— 6 percent of the system). Eight banks (22 percent of the system) recorded NPL below 1 percent. Most of the remaining banks had NPL between 1 and 2 percent. Two state-owned banks—Nepal Bank Limited and Rastriya Banijya Bank—appear to have achieved a significant turnaround in loan recovery, the report says. But it cautioned there are risks that the officially-reported NPL data may understate the asset quality problem owing to ever-greening and other reporting issues. The report said the banks’ loan exposure to real estate has decreased to historically low levels of 14.9 percent from previous fiscal’s 17.1 percent. As a result, in fiscal year 2012- 13, only six commercial banks (16 percent of the system) had exposure to real estate in excess of 20 percent, against 13 banks (33 percent of the system) in the previous fiscal. “None of banks have real estate exposure in excess of 25 percent,” states the report. However, it said the exact risks from real estate and other credit exposure as well as vulnerability to potential loss of depositors’ confidence could confirm only after the results of the ongoing stress tests and in-depth diagnostics of the financial sector institutions are conducted. Nepal Rastra Bank (NRB) Deputy Governor Maha Prasad Adhikari agreed to the World Bank assessment, saying the banking system has been on a steady recovery path and their exposure to real estate did not result in a full-blown crisis as initially predicted. “There is no threat to the system from the current level of exposure to real estate although some bank and financial institutions are affected,” said Adhikari. According to the NRB, loan exposure of banks to the real estate currently stands at around Rs 66 billion—down from Rs 100 billion when the real estate sector headed to recession four years ago. Adhikari said the stringent policy measures taken over the last few years also led the system to recovery, while banking institutions provided loans in a more balanced way. Commercial banks, witnessing abundant liquidity in the last quarter of the last fiscal year, posted record annual net profits. The commercial banking industry posted a record annual net profit of Rs 20.1 billion the last fiscal year compared to Rs 15.5 billion in the previous fiscal. This was possible due to higher net interest income with the growth of 35 percent, foreign exchange earnings and write back of loans, the report says. According to the report, the overall capital position of commercial banks also improved significantly owing to capital injections in statecontrolled banks and increased retained earnings. The average capital adequacy ratio (CAR) stood at 14.2 percent in the last fiscal year compared to 12.1 percent the previous fiscal. All banks have met the minimum CAR of 10 percent (plus 1 percent buffer capital) except two state-controlled banks—Nepal Bank Limited and Rastriya Banijya Bank. Their CAR also improved with NBL maintaining a CAR at negative of 0.5 percent from the negative of 5.5 percent a year ago, while RBB showing a positive CAR of 3.3 percent from a negative of 9.3 percent a year ago. Six banks reported NPL in excess of 3 percent, of which only two had NPL in excess of 5 percent. Eight banks recorded NPL below 1 percent.

Govt amends hotel regulation

Classifies five-star properties into five-star and five-star plus deluxe categories The Tourism Ministry has amended the three-decade old hotel and resort regulation, issuing a new regulatory orders aimed at incorporating changes that have taken place in the hotel industry. Amid criticism that a number of five-star properties do not meet the international standards of a luxury hotel in terms of infrastructure and services they provide, the orders have categorised five-star hotels in two categories—five-star and five-star plus deluxe. The orders, which was published in the Nepal Gazette on October 21, has replaced the Hotel, Lodge, Restaurant, Bar and Tourist Guide Regulation 1981, enforcing the statutory orders to the hoteliers to comply with the latest and modern technology and environment conscious facilities. However, the orders have given a five-year period for the existing hotels to upgrade. “We have given the hoteliers a fiveyear period to upgrade the existing hotels, while new hotels have to comply with every clause of the revised regulation,” said Purna Chandra Bhattarai, jointsecretary of the Industry Division of the ministry. Ministry officials said the move reflects the stakeholders’ concerns that hotels were still being governed by a 30-year-old regulation. The stakeholders had sought a regulation compatible with the current tourism environment and the importance and needs of the tourists. The orders have categorised rental accommodations as tourist standard, mountain resort, jungle and safari resort, and the star category includes one- to five-star hotels. However, the orders have failed to enforce incorporation of facilities that are accessible to the people with disabilities. Also, there are no definitions for new emerging brands like the apartment hotel segment. As per the new provision, a five-star hotel should have at least 200 rooms, 10 percent of which have to be suites and presidential suites with music system, 25 percent deluxe rooms, and 10 club rooms. Each room has to be spread on 250 sq ft with attached bathroom. Fifteen percent of the beds have to be kingor queen-sized. The lobby has to accommodate at least 100 people and comply with the earthquake protection system. The parking space should accommodate vehicles at least 25 percent of the total number of rooms. All the managers of the hotel have to possess a diploma in hotel management at minimum. The hotel should keep the statistics of all its guests and its income intact, the orders read. Separate smoking zones, 24/7 security facility and hygienic kitchen, among other facilities, have been made mandatory for five-star properties. “The reforms are aimed at making five-star hotels look like five-star in terms of service delivery and infrastructure,” Bhattarai said. As far as four-star hotels are concerned, they should at least have 80 rooms each spread on 230 sq ft and have attached bathrooms. These properties should have 10 percent suite rooms and the lobby should have the capacity accommodate 40 guests. Air conditioning system, CCTV system, conference hall, swimming pool, health club, fitness centre, sauna bath, sports facilities and coffee shops have been made mandatory for fourstar properties. At least 50 percent seats have to be allocated for non-smoking guests in restaurants and 80 percent managers should possess a diploma in hotel management. Three-star category hotels should have at least 60 rooms each spreading on 196 sq ft, and 10 percent of the beds should be queen-sized, while all the rooms should be equipped with AC facilities. The orders have made it mandatory for two-star properties to have 40 rooms each spread on 169 sq ft, with attached bathroom. They should have felicities like Wi-fi, CCTV, and parking space for at least 10 vehicles. Similarly, a one-star hotel should boast of 20 rooms each spread on 169 sq ft. Meanwhile, the orders have classified resorts into three categories—mountain resorts, jungle resorts and safari camps, and tourist resorts. These resorts should have recreational activities like hiking, bird watching and safari, among other sports activities. The number of star hotels has reached 107 in 2012 from the previous year’s 106, while the number of tourist standards hotels and resorts rose to 743 in 2012 from 721 in 2011, according to the Economic Survey 2012-13. However, the orders have failed to enforce incorporation of facilities that are accessible to the people with disabilities. Also, there are no definitions for new emerging brands like the apartment hotel segment A combo photo shows five-star hotels in Kathmandu.

Sales of decorative lights go up as Tihar nears

With Tihar, also known as Deepawali - the festival of lights, around the corner, sales of decorative lights is increasing in the market. Traders in Mahabouddha - a famous market for Chinese products - and New Road said sales of decorative lights are up by around 40 percent this year. “Last year, my daily sales hovered around Rs 15,000. This year sales are up to around Rs 25,000 per day,” Bikash Gautam, a wholesaler of electric items at New Road, told Republica. Gautam sells lighting system ranging from Rs 100 to Rs 35,000 per piece. “Almost all the people light up their homes and hearths during Deepawali. Not only during Deepawali, have people light up their homes during weddings and other social occasions,” he added. Pravin Agrawal, a wholesaler based in Mahabouddha said, echoed Gautam and said his daily sales have topped Rs 30,000 this year. “Last year my daily sales averaged Rs 20,000. This year sale is growing at an impressive rate,” Agrawal added. He attributed construction of more buildings and the influence of India where lighting is the key aspect of celebration to rising sales of decorative lights. Agrawal sells decorative lights priced between Rs 50 to Rs 3,000 per piece. Another trader at Mahabouddha, Vicky Agrawal, also said sales of decorative lights are up this Tihar. “Earlier I used to record average daily sales of Rs 10,000. This year I have been selling products worth around Rs 17,000 a day,” Vicky said. Products at Vicky´s shop are available in the price range of Rs 50 to Rs 1,500. Lights available in attractive designs like flowers, photo frames, fruits, animals and religious symbols like Om and Swastik and others are high in demand this year. Most of these products come from China.

Suzuki exchange camp begins today

VG Automobiles, the authorized importer and distributor of Suzuki motorcycles for Nepal, has announced an exchange event named ´VG Suzuki Exchange Camp´ through its dealer network in the valley from Monday. According to the company, people can come up with their old bike or scooter of any brand and get it exchanged with a brand new Suzuki motorcycle. The offer is valid till October 30. Moreover, the company has offered sure shot cash discount of Rs 10,000 on every purchase of Suzuki bikes within the period. Lucky buyers can also win Nokia Lumia phone, Suzuki car and 32-inch Panasonic LCD TV through lucky draw. The company will give all buyers free helmets and pay insurance premium for a year.

Sony Xperia Z1 now in market

Sony Mobile Communications has introduced Xperia Z1smartphone in the Nepali market. A company statement issued on Sunday said Xperia Z1 is a premium waterproof smartphone that combines the very best of Sony technology, entertainment and wide range of companion products with a unique and groundbreaking camera experience. The newly launched phone boasts of a 5-inch display along with G Lens feature with F2.0 and wide angle 27mm as well as 3x clear image zoom. The phone has 2 GB RAM and 16 GB internal memory. It supports expandable memory up to 64 GB. It uses durable tempered glass and solid one-piece aluminium frame. According to the company, the newly launched phone is available in three different colours -- black, white and purple.

National Tax Day on Nov 16

The government has begun preparations to celebrate National Tax Day on November 16. It plans to felicitate 150 taxpayers on the day. The Ministry of Finance on Sunday formed a principal committee led by Director General of Inland Revenue Department, Tankamani Sharma, to organize the event. The committee has formed different sub-committees to celebrate the event. Sharma said they have put aside the plan of announcing different schemes for taxpayers because of the code of conduct enforced by the Election Commission. Speaking at the meeting of the committee on Sunday, industrialist Jagadish Rathi said the government should bring schemes to award small taxpayers. The government started celebrating National Tax Day from last year to encourage and promote tax compliance. The government had felicitated 70 taxpayers last year.

Flower business growing 20 percent annually

Dependency of Nepal on imported flowers has decreased in recent years following sufficient domestic production. Entrepreneurs dealing in flowers say the business is growing at the rate of around 20 percent every year. “Floriculture business has immense potentiality in Nepal and recent years have witnessed positive growth in the industry,” Dilip Bade, general secretary of Floriculture Association of Nepal (FAN) says. Bade further says the industry will yet reach another success if measures regarding its growth are adopted on time. According to Bade, Nepal at present sustains around 80 percent of the demand of flowers and the rest has to be imported from India. Nepal basically imports marigold from India during Dashain-Tihar as its demand booms during the period. On the other hand, the demand of other major flowers like Chrysanthemum and Globe Amaranth is fulfilled by the domestic production itself, Bade says. The data provided by FAN shows that out of total transaction made in the previous Dashain-Tihar, flowers (cut flowers and ornamental flowers) worth Rs 7.5 million was imported from India. During the period, flower business recorded total transactions worth Rs 26 million. “The transaction was more than Rs 15 million in earlier years,” Bade said. Increasing domestic production has been gradually dragging down flower imports. FAN´s data shows that floriculture business is done in 120 hector of land across the country until the fiscal year 2012/13, 15 hectares more than 2011/12. Similarly, data also shows that land allocated for flower plantation was only 80 hectares during the fiscal year 2010/11. According to FAN, Nepal has to depend on India for 40 percent of the demand for ornamental flowers. Cut-flowers and ornamental flowers are the two types which are popular in the market. Gladiolus, rose, carnation, gerbera, orchid and marigold fall under the cut flower category, whereas ornamental flowers such as rubber plant, pine trees and cactus are used for decoration purpose. Data shows that there are, at present 635 retail shops (including that of cut-flowers, ornamental flowers and nurseries)spread across the country, of which 86 deal with cut-flowers, 400 deal with nurseries and the rest with ornamental flowers. Entrepreneurs say around 60 districts in the country hold the potential for flower farming. But currently only Kathmandu, Lalitpur, Bhaktapur, Dhading, Nuwakot, Chitwan and 15,000 visit Chrysanthemum Flower Competition and Fair The seventh Chrysanthemum Flower Competition and Fair, until the second day has witnessed as much as 15,000 visitors, organizers said. The three-day long event, under way at Jawlakhel, Lalitpur is being organized by Agribusiness Promotion and Marketing Development Directorate (APMDD) in association with the Floriculture Association Nepal (FAN). “We received 5,000 visitors on Friday. The number of visitors doubled on the second day,” Kumar Kasaju Shrestha, vice-president of FAN said. Moreover, Shrestha informed transactions worth Rs 1.5 million was carried out till Saturday. “The primary aim of organizing the event is to encourage competitive thought among floriculture entrepreneurs and enhance quality in domestic production,” Shrestha added. The fair, basically targeting the promotion of Chrysanthemum during Tihar also showcases flower types such as seasonal flowers, decorative plants, cut flowers and dry flowers, seeds, fertilizers and pesticides, agricultural tools and packaging materials, among other things. The event concludes on Sunday.

NRNs to open a deluxe five-star hotel in Nepal

The Non-Resident Nepalis (NRNs) are to collectively establish a deluxe five-star hotel in association with an international chain in Nepal. Organizing a press meet, Shesh Ghale, the newly elected President of the Non-Resident Nepali Association, announced that the hotel through collective investment of the NRNs. “We will first carry out a feasibility study, we will call for the collective investment from the NRNs, giving equal priority to all them,” added Ghale. The venue of the proposed hotel is yet to be acertained. Ghale said many of the international hotel chains have shown interest for establishing international hotels in Nepal. Such hotels can have multiplier benefits to the Nepali economy. Say, a hotel of 200 beds can provide employment to over 400 employees, he added. “Moreover, working with international chain, employees can get opportunity to be well-trained and they can be shifted to any of the hotels worldwide after a period of work,” Ghale further said. Ghale is separately constructing a five star hotel in association with Sheraton Hotel, an international chain, in Kathmandu. The first meeting of the NRNA new executive committee on Friday also decided to scale up the collective investment of the NRNs for creating new jobs as well as infrastructure development. The plan of promoting entrepreneurship among the Nepalis is another program of the NRNA, the press release said. Ghale said that the collective investment in hydropower via NRN Investment Limited continues. “We are also mulling over the investment in commercial agriculture and infrastructure.” Likewise, the NRNA continues to lobby for investment-friendly environment in the country. The first meeting of newly elected executives of the NRNA on Friday has also decided to construct its own office building. The executive committee has made commitment of collecting Rs 20 million for the building. Ghale has pledged Rs 10 million for the project. The organization of the Nepali diaspora was registered at the Ministry of Foreign Affairs on October 20. The registration of the organization paved the way for purchasing land and constructing its own building. Currently the organization has its office at secretariat of FNCCI at Teku in the capital. A two day international convention and a two-day global conference of the NRNs concluded with 14-point declaration on Tuesday.

Nepse index down 4.46 points

The Nepal Stock Exchange (Nepse) index went down by 4.46 points this week. The benchmark index, which opened at 583.76 points on Sunday, closed at 579.30 points on Thursday - the last trading day of the week. Stock analysts have termed marginal drop in Nepse index as market correction after gains over the past few weeks. The Nepse index had increased remarkably after the Dashain festival. Experts had attributed Nepse´s journey into the green zone to positive political developments for the Constituent Assembly (CA) election which buoyed investors´ confidence. Gunanidhi Bhusal, managing director of Aryatara Investment & Securities, predicted Nepse index to post steady gains in the coming weeks. Some banks and financial institutions are expected to announce their first quarter report in the coming weeks and it is expected to create some fluctuation in share prices. A total of 2.01 million units of shares of 123 companies worth Rs 736.6 million were traded through 9,723 transactions this week. “The major fluctuation was seen in the Hotel group after the Soaltee Hotels Limited announced 40 percent bonus shares and 12.63 percent cash dividend to its shareholders this week,” added Bhusal. The Hotels group was the biggest gainer of the week as its sub-index gained a whopping 94.21 points to close at 891.56 points on Thursday. Similarly, the sub-indices of the Manufacturing and Insurance groups increased by 27.71 and 9.92 points, respectively, to settle at 913.40 and 1,369.76 points respectively. The Finance and Development Banks sub-indices were also up 3.64 and 1.44 points to close at 278.44 and 302.86, respectively. However, Hydropower and Commercial Banks ended the week in the red zone. The Hydropower sub-index went down by 12.28 points to close at 1386.20 points, while the Commercial Banks sub-index shed 11.64 points to settle at 553.75 points. The sub-indices of Trading and Others groups remained unchanged over the week.

Etihad doubles flight frequency to Nepal

Etihad Airways -- the national airlines of the United Arab Emirates (UAE) - is doubling its flight frequency to Nepal effective Sunday. Now onwards, the airline will operate 14 flights per week on Kathmandu-Abu Dhabi sector. Issuing a statement, the airline said the additional flights driven by the demand from business and leisure travelers will further strengthen the commercial and cultural ties between Nepal and the UAE. Etihad currently caters 50 percent leisure travelers and has less Gulf Cooperation Council (GCC) countries traffic, according to the statement. “The double daily flights will help connect more destinations over the airline´s Abu Dhabi hub to key destinations in Europe, Middle East and GCC countries,” the statement quoted Pawana Shrestha, general manager of Etihad Airways-Nepal. Meanwhile, the airline has also announced promotional fares to some popular destinations in Europe and North America. According to the statement, the promotional fares are available to London, Manchester, Frankfurt, Milan, Munich, Brussels, Geneva, Paris, New York, Chicago and Washington. Shrestha said that the fares are for sale until October 31 and the travel period is from October 27 to May 31, 2014. Etihad, which started Kathmandu flights in 2007, has carried more than 620,000 passengers in the sector. The airline claimed that it enjoys 8 percent market share in the domestic aviation industry.

NC's manifesto: Main focus on agriculture, water resources, tourism

The Nepali Congress (NC) unveiled its election manifesto on Thursday announcing that it would make agriculture, tourism, water resources and industries the foundations for an economic revolution in the country. The 64-page manifesto stressed commercialization and mechanization of agriculture, expansion and the diversification of the tourism sector for greater employment generation. In a bid to utilize the water resources of the country, the party also stressed on its multi-purpose use and its importance in creating conducive environment for industrial development in the country. In the manifesto, NC re-enforced its long-running commitment to open market economy stating that the party its policy will be to take benefit from the rightful utilization of the markets. However, the party announced it would make the interventions necessary to discourage unfair competition, protect the economic welfare of people, safeguard the rights of consumers and protect the rights of laborers. The manifesto also pledged to make efforts to achieve inclusive economic development that would ensure that the benefits of development were shared by all strata of people. The party said it recognized women as a major source of socio-economic transformation creating their greater participation in formal sector of the economy. Regaling over policy taken by the party in the past in reducing poverty, the manifesto recognized the crucial role that the private and cooperatives sectors play in alleviating absolute poverty in a complete and sustainable manner. Keeping in view the exodus of Nepali youth to foreign labor destinations for employments, the party has made commitments to create employment opportunities for at least a 100 days for unemployed youths taking a long-term policy to end the situation of leaving country for employment. The party has showed its willingness to join hands with civil society and non-governmental and community organizations for the development of the private, public and cooperatives sectors. Pledging to develop infrastructure suitable to the 21st century´s developments, the party has also given priority to expanding roads, railway, airports and telephone network in the country. In a bid to promote investment, the party has showed its commitment to creating an investment climate for domestic and foreign investors. “Production cannot be increased, nor employment created to retain the youth in the country and the economy has to depend highly on remittance and imported goods if both domestic and foreign investment is not promoted,” reads the manifesto. The manifesto has highly regarded the role of private sector in accelerating economic activities and generating employment. “The private sector will be developed as an engine for growth. The party will promote fair competition, adopt administrative simplification, promote good governance, infrastructure development and adoption of modern technologies as the foundations for private sector development,” the manifesto said. The party expressed confidence that the country could achieve 8-10 percent economic growth by creating an investment friendly climate. The party has also announced that it will promote open and liberal economic policies for rapid economic growth. Gradually reducing the dependence on external financial resources, the party has also pledged to expand the tax net to consolidate revenue sources. Legal arrangement of compensation for losses incurred due to strikes, action against those involved in forceful donation demands, development of the capital market and promotion of foreign investment in agriculture, hydropower, tourism infrastructure, information technology (IT) and production of exportable goods, are also incorporated in the manifesto. The party has announced cooperatives as a supplement in democratic practice, economic prosperity and poverty alleviation. In the manifesto, the party has set a plan to increase the role of cooperatives in production, processing and marketing farm produces, promotion of agriculture infrastructure and mobilization of rural deposits. Establishment of at least one chemical fertilizer factory within five years, arrangement of loan through banks and cooperatives to overseas returnees to run businesses that utilize their skills, construction of all-weather roads to all districts for proper marketing of local produce and promotion of public investment in agriculture are also in the party´s manifesto. The party has also set a target of increasing the amount of land having round-the-year irrigation to 50 percent from existing 36 percent to boost farm production. The party has also pledged to bring in 2.5 million tourists every year within ten years by promoting tourism with activities based on sports, medical and film making. Through the manifesto, the party expressed commitment to establish industrial peace for industrial development through industrial security and infrastructure development with the main motto of promoting export, utilization of local raw materials and generate employment. Establishing access of each VDC to black-topped roads, development of the Kathmandu-Pokhara road into an expressway, construction of eight north-south highways, construction of a second international airport, regional airports in Biratnagar, Pokhara, Janakpur, Bhairawa, Nepalgunj and Dhandgadhi within five years, construction of an alternative domestic airport in Kathmandu within five years, completion of one-fourth of east-west railway within five years and completion of railway linking the Chinese and Indian borders via Kathmandu within ten years are also among the programs incorporated in the manifesto. The party has pledged to end load-shedding within three years, relief from load shedding for industrial corridors and capital within two years, formulation of a National Energy Security Policy, generation of 5,000 MW of electricity within five years, arrangement of pollution-free modern stoves for all Nepali households within four years.

NC's manifesto: Main focus on agriculture, water resources, tourism

The Nepali Congress (NC) unveiled its election manifesto on Thursday announcing that it would make agriculture, tourism, water resources and industries the foundations for an economic revolution in the country. The 64-page manifesto stressed commercialization and mechanization of agriculture, expansion and the diversification of the tourism sector for greater employment generation. In a bid to utilize the water resources of the country, the party also stressed on its multi-purpose use and its importance in creating conducive environment for industrial development in the country. In the manifesto, NC re-enforced its long-running commitment to open market economy stating that the party its policy will be to take benefit from the rightful utilization of the markets. However, the party announced it would make the interventions necessary to discourage unfair competition, protect the economic welfare of people, safeguard the rights of consumers and protect the rights of laborers. The manifesto also pledged to make efforts to achieve inclusive economic development that would ensure that the benefits of development were shared by all strata of people. The party said it recognized women as a major source of socio-economic transformation creating their greater participation in formal sector of the economy. Regaling over policy taken by the party in the past in reducing poverty, the manifesto recognized the crucial role that the private and cooperatives sectors play in alleviating absolute poverty in a complete and sustainable manner. Keeping in view the exodus of Nepali youth to foreign labor destinations for employments, the party has made commitments to create employment opportunities for at least a 100 days for unemployed youths taking a long-term policy to end the situation of leaving country for employment. The party has showed its willingness to join hands with civil society and non-governmental and community organizations for the development of the private, public and cooperatives sectors. Pledging to develop infrastructure suitable to the 21st century´s developments, the party has also given priority to expanding roads, railway, airports and telephone network in the country. In a bid to promote investment, the party has showed its commitment to creating an investment climate for domestic and foreign investors. “Production cannot be increased, nor employment created to retain the youth in the country and the economy has to depend highly on remittance and imported goods if both domestic and foreign investment is not promoted,” reads the manifesto. The manifesto has highly regarded the role of private sector in accelerating economic activities and generating employment. “The private sector will be developed as an engine for growth. The party will promote fair competition, adopt administrative simplification, promote good governance, infrastructure development and adoption of modern technologies as the foundations for private sector development,” the manifesto said. The party expressed confidence that the country could achieve 8-10 percent economic growth by creating an investment friendly climate. The party has also announced that it will promote open and liberal economic policies for rapid economic growth. Gradually reducing the dependence on external financial resources, the party has also pledged to expand the tax net to consolidate revenue sources. Legal arrangement of compensation for losses incurred due to strikes, action against those involved in forceful donation demands, development of the capital market and promotion of foreign investment in agriculture, hydropower, tourism infrastructure, information technology (IT) and production of exportable goods, are also incorporated in the manifesto. The party has announced cooperatives as a supplement in democratic practice, economic prosperity and poverty alleviation. In the manifesto, the party has set a plan to increase the role of cooperatives in production, processing and marketing farm produces, promotion of agriculture infrastructure and mobilization of rural deposits. Establishment of at least one chemical fertilizer factory within five years, arrangement of loan through banks and cooperatives to overseas returnees to run businesses that utilize their skills, construction of all-weather roads to all districts for proper marketing of local produce and promotion of public investment in agriculture are also in the party´s manifesto. The party has also set a target of increasing the amount of land having round-the-year irrigation to 50 percent from existing 36 percent to boost farm production. The party has also pledged to bring in 2.5 million tourists every year within ten years by promoting tourism with activities based on sports, medical and film making. Through the manifesto, the party expressed commitment to establish industrial peace for industrial development through industrial security and infrastructure development with the main motto of promoting export, utilization of local raw materials and generate employment. Establishing access of each VDC to black-topped roads, development of the Kathmandu-Pokhara road into an expressway, construction of eight north-south highways, construction of a second international airport, regional airports in Biratnagar, Pokhara, Janakpur, Bhairawa, Nepalgunj and Dhandgadhi within five years, construction of an alternative domestic airport in Kathmandu within five years, completion of one-fourth of east-west railway within five years and completion of railway linking the Chinese and Indian borders via Kathmandu within ten years are also among the programs incorporated in the manifesto. The party has pledged to end load-shedding within three years, relief from load shedding for industrial corridors and capital within two years, formulation of a National Energy Security Policy, generation of 5,000 MW of electricity within five years, arrangement of pollution-free modern stoves for all Nepali households within four years.

Nepal heading toward economic recovery with 4.5% growth: WB

The World Bank (WB) has said that Nepal is heading toward economic recovery with the growth between 4 percent and 4.5 percent this year, up from last year’s 3.6 percent. The WB, however, made it clear that the country still needed to remove some bottlenecks in the development of energy, transportation and financial sectors to move to a higher growth trajectory. “Given the positive economic developments, the recovery of Nepal is likely. But Nepal has to focus on energy generation, transport development to support trade, and consolidate the financial sector,” Johannes Zutt, the country director of the WB for Nepal and Bangladesh, said at an interaction with the media on Thursday. Stating that politics has been eclipsing economic agenda in Nepal, Zutt underlined the need to promote private sector investment, infrastructure development and reforms in the financial sector to ensure robust growth. Highlighting ´Nepal Development Update´ -- a macro economic report on Nepal --released by the WB, Zutt stressed the need for Nepal to shift its focus to economic development while letting the political process go simultaneously. “It is time Nepal’s government increased its focus on increasing economic activities rather than sticking to political agenda,” Zutt said. Expressing concern over the depreciation of the Nepali currency against the US dollar, Zutt said that the depreciation was a concern but not a problem to panic over. The report also suggested that Nepal needn´t change the existing system of pegging the Nepali rupee to the Indian currency given the stronger dollar. “Such a major policy shift should be based on clear policy objectives and in-depth analysis of the likely economic outcome, including the long-term impact on Nepal´s trade competitiveness,” the report added. Presenting the report, Aureilien Kruse, the senior country economist at the WB’s Nepal office, said Nepal may achieve 4-4.5 percent economic growth this year, amid reports of good monsoon, steady remittance inflow and positive development in making progress in public spending. “If the elections are held on time and the result yield a broad consensus, macro-economic projections point to a gradual return to economic growth of 4 to 4.5 percent with inflation remaining in single digit,” the report said. The government has projected economic growth of 5.5 percent supported by the favorable monsoon and the timely announcement of the annual budget this year. Stating that it is challenging to contain inflation in an election year, Kruse said inflation mostly depends on the price situation in India, Nepal’s main trading partner. “Increasing fiscal expenditures and the upcoming elections will push inflation up in Nepal. However, the increased supply of food grains as a result of the favorable monsoon rains will support the government’s efforts to tame inflation. Prices of commodities in neighboring India will influence supplies and the price situation in Nepal,” said Kruse. Amid concerns over the weakening of the Nepali rupees against the US dollar, Kruse urged Nepal to try and benefit from the increased export receipts and remittance. “Though a stronger dollar against the rupee has pushed the import bills up and contributed to rising inflation, Nepal can benefit from exports and remittances,” he added. The report also said the recent depreciation of the Nepali rupees is not expected to hold back growth or to threaten macro-economic stability.

Laxmi InterContinental launches 'Experience Hyundai'

Laxmi InterContinental, the authorized distributor of Hyundai vehicles for Nepal, has on Thursday launched Experience Hyundai from its showroom at Thapathali. According to company, the event is being organized to provide a platform to customers where ‘everyone can experience the whole Hyundai family’. The event features free car wash, gifts on test drives, any-brand exchange, on the spot financing and insurance, and free check-up facility for Hyundai vehicles, it said in a statement. On the sideline of the event, the company has also set up ice cream and food stalls. Meanwhile, the company said its ´Dashain-Tihar Super Duper Bumper´ offer on Hyundai is valid during the event. The event concludes on October 26, Saturday.

Kathmandu-Tarai fast track project uncertain

Investment in the much-touted Kathmandu-Tarai Fast Track, a national pride project, has become more uncertain as the government has stopped the process for selecting contractor for the multi-million dollar project. Concern officials are not in a mood to restart the bidding after an international firm cold shouldered the government´s call for investment. The project fell into uncertainty when all three short listed international developers did not submit their Request for Proposal (RFP) for the project by September 21-- the last extended deadline. The Ministry of Physical Infrastructure and Transport (MoPIT) has not called any meeting of the steering committee of the project. The Minister for Physical Infrastructure and Transport heads the committee. Tulasi Prasad Situala, secretary at MoPIT told Republica that the process of selecting firm to develop the four-lane 76-km expressway has been virtually stalled as only a political government to be formed after the elections can take a decision regarding the project. “The process for selecting the contractor for the project has virtually been halted as the government is currently busy making preparations for the elections,” said Sitaula. Formation of a poiltical government would take at least two months after the elections are held. The project is one among the 21 priority projects. MoPIT Officials are of the view that the options of finding international developer and investor have almost come to an end, therefore the government should implement it on multi-year basis using own resources. Implementation of the project had come to a standstill about two years ago when then parliament´s Public Account Committee (PAC) instructed the government to involve Nepali investors in the project. MoPIT had initiated fresh biddings in 2012 but none of the three short listed Indian Companies of the total nine companies submitted RFP even when they were provided four additional months. Ananta Acharya, chief of the project, argued that international developers hesitate to invest in the project citing unfriendly investment climate in the country. The government had attempted to implement the Rs 80 billion project under Built-Operate-Own-Transfer (BOOT) model.

Industry registration declines by 21 percent

Registration of industries has dropped by a whopping 21 percent during the first two months of the current fiscal year compared to the same period last year. Data compiled by the Department of Industry (DoI) shows that 63 industries were registered across the country during the period until mid-September. A total of 80 industries were registered during the same period last year. Officials said overall registration of industries tumbled over the period as investors were reluctant to set up new businesses amid uncertainty over elections to the Constituent Assembly (CA). Registration of service and tourism related businesses plunged significantly during the review period as compared to other sectors. A total of 11 enterprises were registered during the period, down from 21 recorded last year. Similarly, registration under tourism sector also went down to 13 firms during the review period from 19 registered during the same period last year. Energy and manufacturing sectors are also saw a decline in the registration of new ventures. A total of seven and 18 new firms were registered in energy and manufacturing sectors respectively during the period. The number was nine and 19 respectively during the corresponding period last year. Ram Sharan Timoria, spokesperson at DoI attributed the decline in registration to political uncertainty in the country. “As the country braces for fresh elections foreign investors are wary of making investments. Investors might have postponed their plans for investment till the elections,” said Timiria. He, however, said that the data compiled for two months cannot reflect the total picture.The data shows that the capital witnessed rise in the registration of new industries during the period. A total of 42 industries were registered during the period in Kathmandu. This is a 33 percent rise compared to the figures recorded during the same period last year. Similarly, 16 new industries were registered in Lalitpur until the end of second month of the current fiscal year, up by seven industries recorded during the same period last year.

NT starts selling own mobile phone sets

Targeting the upcoming election, Nepal Telecom (NT) has started selling mobile sets with its own brand name from Wednesday. NT has tied up with Batsal Impex vendor of Alcatel and has introduced two different models Alcatel D260--feature phone and Alcatel D290--smartphone from its office at Sundhara. The phones will be available from all NT counters from Thursday onward. Anoop Ranjan Bhattarai, deputy managing director of NT said the phone is perfect for politicians, cadres of political parties, government officials, army, armed police force (APF) among others who are deployed for election in villages as CDMA service has best carpet coverage in terms of both voice and data and is available in all the districts. NT officials said that Election Commission and APF have also shown its interest in the phones for providing it to election officials and security personnel. NT is selling Alcatel D260 under its own brand name. The phone whose priced was earlier fixed at 5,500 is likely to cost around Rs 5,000 and customers buying the phone will get a RUIM card worth Rs 100 with talk value of same amount and Rs 200 talk time free for a year. NT is likely to provide special Tihar discount on the purchase of phone. Alcatel D290 is available at Rs 20,500 and customers will get a RUIM card worth Rs 100 with talk value of same amount and data worth Rs 500 free for a year. Bhattarai said that the company has bundled the phone with CDMA service in order to promote CDMA service which is much cheaper compared to GSM service. NT has stated that it will be bundling its services with other phones such as Alcatel 990 C, Lenovo A 600E, A765 E and A820E and Micromax EG 350 in the near future. Sudhan Lal Shrestha senior engineer at NT said that the company is waiting for commitment from Lenovo and Micromax to provide its phones. Lenovo has said that it will provide commitment before Tihar while Micromax is yet to respond. “Both the phones introduced on Wednesday are a dual SIM phones that supports CDMA and GSM. For data, the phones support 3G in case of CDMA while in case of GSM it supports 2G only,” said Shrestha. NT has introduced 500 units of Alcatel D260 and 200 units of Alcatel D290 in the first phase. NT is also planning to bundle its services with high end mobile phones and tablets in the near future targeting upper class customers. It is carrying out test to bring Huawei Ascend P6 --a phone that can compete with iPhone 5 and Samsung Galaxy S4.