Digital licences, blue books to be issued from 2015

THE government plans to issue electronic driving licences and blue books for motor vehicles starting in 2015. The Department of Transport Management is preparing to select an international contractor to implement the project. Three firms, Madras Security Printers of India, Indra Sistemas SA of Spain and IRIS Corporation Berhad of Malaysia, have been shortlisted among the bidders as technically capable firms to undertake the project. The department has asked them to submit their financial proposals by July 17. “We have asked the technically qualified firms to submit their financial proposals too after depositing a bid bond of US$ 46,000,” said Sarad Adhikari, technical director at the department. He added that they planned to complete the evaluation of proposals by July to appoint a contractor and send its name to the Asian Development Bank (ADB) for its approval to sign an agreement. The ADB has provided the government a grant assistance of US $ 2.3 million to implement this programme as part of the ICT Development Project. A total of 13 international and local firms had submitted technical proposals in response to the invitation for tenders issued in August last year. The department has been working to implement the hi-tech machine readable electronic driving licences and blue books for the last three years. After the project is implemented, driving licences and blue books will be changed into smartcards with all the vital information stored on them. The selected firm will get a 15-month period to install the hardware, develop the software, build the networks and train the staff to operate the system. “If things go smoothly as per the government plan, the issuance of electronic driving licences will start by early 2015,” said an official at the Ministry of Physical Infrastructure and Transport. The project had originally been planned to be implemented by 2010. However, it was delayed due to an investigation launched by the Commission for Investigation of Abuse of Authority in 2010 for possible irregularities. Government procedures also held up the project, said the department. The new provision based on smartcard technology is expected to help prevent counterfeiting of licences, blue books and other vehicle related documents and keep electronic records of all the vehicle owners. There are over 1.5 million vehicles registered in the country. The government has also been planning to replace the handwritten number plates being used at present for motor vehicles with modern embossed number plates. Recently, the department requested the Transport Ministry to form a committee to do a fresh study on embossed number plates to recommend ways of implementation, the colours to be used on them and the necessary amendments to the existing laws. The amended Transport Management Regulation 1997 has made embossed number plates mandatory, but the rule has not been enforced.

MAKE YOUR OWN PURE WATER

The company has introduced five variants of water purifiers. All these purifying systems use hollow fibre membrane technology which are small, portable, easy to use, reliable and inexpensive

WITH the monsoon season in full swing, demand for water purifiers has gone up in the market. More and more people are purchasing these appliances to be safe from diseases likely to be caused by consumption of contaminated drinking water. So, if you are among those looking for a reliable solution, checking out the water purifying appliances from US-based company Sawyer might be an ideal option. Birang Trading, the authorised importer of Sawyer products in Nepal, has come up with a wide range of water purifying systems that can be useful in residences and offices and also for those on the move. The company has introduced five variants of water purifiers for starters -- PointOne filter, 0.10 Absolute Micron Water filter, 10 inch filter unit, PointZero two purifiers and squeeze filters. All these purifying systems use hollow fibre membrane technology which are small, portable, easy to use, reliable and inexpensive and can last a lifetime, the company said. “We have been selling water purifiers from Sawyer for the past six months, and the response so far has been very good,” said Aayush Bista, managing director of Birang Trading. “Sawyer water purifying systems meet drinking water standards of the World Health Organisation (WHO) and the Environmental Protection Agency (EPA).” Bista added that the purifying system has also been tested by the Nepal Academy of Science and Technology (NAST) and Kathmandu Upatyaka Khanepani Limited (KUKL). So far, the company has sold 500 units of the Sawyer water purifying systems. “Till now, we have been focusing on institutional customers. We haven’t received any complaints, and now we plan to move into promoting it to end customers,” said Bista. Priced at Rs 9,700, the PointOne filter is the perfect choice for villages where there is no plumbing, according to the company.

The purifier can be easily fixed to buckets to purify the water. It can filter 5,000 l of water daily. Likewise, the 0.10 Absolute Micron Water filter comprises an adaptor which can be fitted as a cap to any kind of water bottle. The flip top cap comprises a hollow fibre membrane which can purify water even when people are travelling. The 10-inch filter unit is an ideal option for big institutions like schools, hospitals, corporate houses and factories. According to the company, it can filter 19,000 l of water daily. It has been priced at Rs 330,000. Moreover, for hospitals which require a very high level of purity, the company has come up with PointZero two purifiers. Since, the purity of the water produced by the device is high, it can purify only 560 l daily. The company has priced this device at Rs 18,500. Likewise, the Sawyer squeeze filter comes with a universal cap which can be fitted to any kind of water bottle to produce pure water. According to the company, it is an ideal option for those who don’t have faith in the drinking water served outside their homes. It has been priced at Rs 7,700. According to Bista, the technology is economical as consumers can use it for years by just cleaning the filter periodically. Moreover, the cleaning apparatus is provided by the company while purchasing the purifier, and it can be easily used by the consumers, he added.

Demand for knitwear increases

Pashmina knitwear has emerged as another product with high export possibility in the international market, the Nepal Pashmina Industries Association (NPIA) has said. According to NPIA, since the last four years, demand for pashmina knitwear has been increasing gradually. “The overall export statistics of knitwear shows Japan as the highest importer, followed by the US, UK, Germany, Hong Kong and Switzerland,“ said general secretary of NPIA Vijoy Dugar. Earlier, Nepal did not have good involvement in knitwear but with participation in international trade fairs, people from the international market have started showing interest in knitwear too. Knitwear products exported to the international market mainly include ladies and gents sweaters, vests, caps, gloves and baby wear, which are made from the same yarn used in pashmina. However, under pashmina products, shawls, stoles, mufflers, blankets and scarves are the varieties that are exported. According to Nepal Pashmina Industries Association, earlier China, India and Italy used to make bulk exports of knitwear products in the international market. 

Pashmina association targets new markets

Nepal Pashmina Industries Association (NPIA) is planning to register the ‘Chyangra Pashmina’ trademark in the Middle East, Asia Pacific, Central Asia and Africa by 2015. “This will be our Phase II plan which will commence only if we are successful in promoting the ‘Chyangra Pashmina’ brand under our Phase I plan,” said general secretary of NPIA Vijoy Dugar. Under the Phase I plan, NPIA is working to register the pashmina trademark in 47 countries and promote the trademark with assistance from the International Trade Centre (ITC). “The countries in the Phase I plan are those who are frequent buyers of Nepali pashmina products,” said Dugar. According to Dugar, the government had allotted Rs two million to register the trademark in the five remaining countries where the trademark has not been registered but the association has still not received the budget. “The present fiscal year is coming to an end but the Trade and Export Promotion Centre has not yet received the budget of Rs two million from the government,” Dugar said. Meanwhile, the association is also waiting for financial assistance from ITC to promote and brand pashmina products. However, the association has plans to start its Phase II plan, but it has said that it will start the Phase II plan only if the Phase I plan shows positive response. Nepali pashmina, till date, has been registered in 42 countries but due to budget constraints, the registration process in China, Brazil, UAE, Russia and Malaysia is still pending. According to NPIA, pashmina exporters are receiving satisfactory orders. The orders are mainly made in June, August and September for Christmas and winter season.  

HAN lauds agreement

Hotel Association Nepal (HAN), releasing a press statement, has expressed its pleasure on the agreement signed between Nepal Airlines Corporation (NAC) and Airbus for the delivery of two aircraft. It states that the proper maintenance of the existing two aircraft and two other aircraft on dry lease can help boost the overall standard of the national carrier in the international market. The additional aircraft will help cope with the increasing demand and promote the tourism industry, states the press release.  

NIBL to launch corporate debentures soon

Nepal Investment Bank Ltd (NIBL) is the latest bank that has planned to launch corporate debentures in the capital market. NIBL will issue seven-year corporate bonds — Nepal Investment Bank Debenture 2077 — worth Rs 500 million at par value of Rs 1000, which will yield eight per cent interest. It will be issuing debentures after two years. It had issued bonds in July 2011 — seven-year bond at 12 per cent interest. The issue, to be managed by Nabil Investment Ltd, will be open from July 8 to 11. However, in case of under-subscription, the issue will be open till July 22. NIBL’s bond issue was assigned ICRA NP Issuer Rating A by the credit rating agency ICRA Nepal. Instruments with the particular rating are considered adequate-credit-quality, that is, the rated entity carries average credit risk. NIBL is the sixth bank this fiscal year to come up with a debenture issue. The six commercial banks will have issued debentures worth Rs 3.7 billion in the capital market, till date. Moreover, there are still two more debenture issues worth Rs one billion that have got their issues rated by ICRA Nepal. As banks are struggling to maintain enough liquidity to finance lendings, the pace of debenture issue has gone up in recent times. Since banks have to maintain a capital adequacy ratio of 10 per cent, debentures have become the go-to instrument when their capital seems to be flailing compared to risk weighted assets that are loans. The debentures issued are included under Tier II capital — supplementary capital — of the issuing bank, thereby increasing its capacity to float more loans. Despite the accelerated issuance of corporate bonds in the capital market, general investors are not interested in bonds. Most of the bonds issued are absorbed by other institutional investors such as financial institutions and insurance companies, among others. Moreover, even though there are 4.97 million corporate debentures worth Rs 4.97 billion listed at the stock exchange, there has not been any secondary trading of these bonds. Since a long time no new debentures have been listed at the stock exchange.  

`Reconsider lending rates'

Nepal Rastra Bank governor Dr Yubaraj Khatiwada has pointed out that financial institutions need to reconsider their lending rate so as not to scare off borrowers. “Since NRB started keeping track of the base rate of banks, we feel banks can afford to lower interest rate while continuing to earn normal profit,“ he said, at the inauguration of NIC Asia Bank. “Moreover, product-wise interest rate differentiation followed by banks is not rational,“ he said, stressing banks are charging less than 10 per cent on some loan products while others are charged as high as 17 per cent, and deposit rates offered on different savings products also vary by seven to eight percentage points.

NIC, BoAN merge to become NIC Asia Bank

Financial institutions need to hold back on demanding more facilities to get merged as merger itself provides opportunities for business expansion, according to the central bank governor. During the inauguration of NIC Asia Bank Ltd — the merged entity of Bank of Asia Nepal and NIC Bank — Nepal Rastra Bank (NRB) governor Dr Yubaraj Khatiwada said, “Mergers are meant to make the merged entity competitive and able to run the business cost-effectively, and banks should not feel like they are doing it for the central bank.” NIC Asia Bank — that became fully operational today — is the first commercial bank that has been formed through a merger between two class ‘A’ financial institutions in the history of the Nepali banking system. “Not only has the bank become a trendsetter in terms of merger between big institutions, it has also become a systemically important bank in the financial system due to its size,” the governor said. Following the merger, NIC Asia Bank now serves more than 270,000 customers with deposits worth Rs 38 billion and loans worth Rs 33 billion. It will from now on provide banking services through its 53 branches. It has paid up capital of Rs 2.31 billion, however, its capital base is around Rs five billion, including reserve and retained earnings. Dr Khatiwada also informed that the time had come for banks to increase their capital further. “Though higher capital does not guarantee better performance, it makes banks more sturdy and infuses confidence in them,” he said. NIC Bank and Bank of Asia, which had started the merger procedure in May 2012, were granted Letter of Intent for merger by the central bank on July 23, 2012. The Office of Company Registrar granted the final approval for the two banks to merge on May 14, this year. NRB had specifically suggested the banks that had numerous common directors and common promoters to get merged. “We, at first, had sought a strategic partnership from foreign banks but could not find one due to the policy volatility of Nepal,” said CEO of NIC Asia Bank Sashin Joshi, adding that the merger was not an easy process. He also pointed out the need for better facilities and clear legal provisions that will make mergers more attractive for other banks. “There is a merger guideline to guide the financial institutions to opt for mergers, but if there were legal provisions that facilitated acquisition then the Nepali financial sector would see more financial institutions that are smaller or in trouble being acquired by larger and able ones,” said Joshi.

Nepal Stock Exchange that had halted trading of the banks due to the merger procedure since the last one year, will resume the trading of the new NIC Asia Bank soon. Shareholders of Bank of Asia Nepal will be issued new share certificates equivalent to one share of NIC Asia Bank for two shares of Bank of Asia Nepal. The due diligence audit of the banks had determined 1:2 share swap ratio between NIC Bank and Bank of Asia Nepal.

Land revenue collection rises significantly

In what might be called a sign of improvement in real estate business, revenue collection from land and housing transaction increased by 21 percent in Kathmandu Valley and 220 percent outside the capital during the month ending mid-June. Realty sector has been witnessing slowdown after the Nepal Rastra Bank (NRB), the central bank, tightened its screw lending on realty sector. Improvement in land and housing transactions and subsequent rise in revenue collection in the valley from the very beginning of the current fiscal year has expanded to major cities outside the valley as well. Data compiled by Department of Land Reform (DoLR) shows that the government collected revenue worth Rs 220.4 million from registration of land in the Valley during the review month. It had mobilized Rs 183.3 million during the same month in the last fiscal year. Kathmandu Land Reform Office (LRO) mobilized Rs 83.7 million during the period, up from Rs 60.4 million collected in the same period of last fiscal year. Similarly, LROs in Kalanki, Bhaktapur and Patan collected Rs 32.1 million, Rs 21.6 million and 47.7 million, respectively. However, revenue collection at Chabahil LRO dropped marginally to Rs 35.3 million from Rs 35.9 million recorded during the same month last year. “We have seen improvement in realty transactions and revenue collection in the Kathmandu Valley from the beginning of this fiscal year. The momentum is gradually shifting to major cities outside the valley,” Raju Basnet, statistics officer at DoLR, told Republica. Cities, which have emerged as major migration centers, have reported significant growth in revenue collection with their combined revenue crossing over Rs 168.3 million during the month ending mid-June-this year, up by around 220 percent compared to the amount collected in the same month of last fiscal year. Land revenue collection from Rupandehi, Morang, Sunsari, Janakpur, Chitwan, Makawanpur, Kaski, Banke, Kanchanpur and Kailali have increased in the review month. Kaski reported the highest revenue collection of Rs 25 million, followed by Rupandehi with Rs 24.3 million. Similarly, Morang, Sunsari and Janakpur collected Rs 19.7 million, Rs 19.5 million and 11.6 million, respectively. During the month, Chitwan collected Rs 19.8 million, Makawanpur Rs 12 million, Banke Rs 12.9 million, Kanchanpur Rs 8.3 million and Kailali Rs 9.6 million. These cities had witnessed overheated realty price some three years ago when realty business was at its peak. Despite rise in revenue collection, realty traders said the sector will return to normalcy only after at least couple of years as people are still reluctant to put their money in property fearing possible decline in prices. The government has set a target of collecting revenue worth Rs 4.5 billion from land and housing transactions in the current fiscal year. “We will meet the target easily as realty transactions have been improving nationwide,” said Basnet. Property prices in Kathmandu Valley and major cities across the country had declined significantly after NRB imposed a ceiling on real estate loans in the beginning of 2010.

Dubai-made Touchkon phones, tablets now in Nepal

Customers looking for quality smartphone with latest technology have a reason to cherish as Touchkon brand of smpartphones and tablet PCs are now available in Nepal. Laser InfoTech Nepal has introduced three models of smartphones and two models of tablets made by the Dubai-based company. “We have introduced tablets and smartphones made in Dubai as they are of high quality, use latest technology available and can compete with the well-known international brands available in Nepal,” Mahesh Rajkarnikar, manager of Laser InfoTech Nepal, told Republica. According to the company Touchkon M 502 sports a 4.5-inch AMODLED QHD display and I powered by the latest MTK65 Quadcore 1.2 GHZ processor and PowerVR™ series 5XT GPU. It has 1 GB RAM, 4 GB NAND flash internal memory and supports external memory up to 64 GB. It runs on Android Jellybean operating system. The phone costs Rs 18,400 in Nepal. According to Rajkarnikar, Touchkon M505 is an ultra-light 5-inch phone with Android 4.2.1 Jelly Bean operating system, MTK6589 Cortex A7 Quad Core 1.2GHz processor, 1 GB RAM and 8GB NAND flash internal memory. The M505 supports external memory up to 64 GB. It is available in the market at Rs 23,950. The M601 sports One-Glass-Solution (OGS) touch screen that makes the phone elegant and super slim. It phone is powered by Android 4.2.1 Jelly Bean processor, 1.2 Cortex A7 Quad Core processor and SGX544MP power VR Series 5 GPU. It uses 1 GB RAM and 8 GB NAND internal flash memory. Its memory can be expanded by up to 64 GB. It is available at Rs 24,960. The M601 has 8 MP front camera and 12 MP camera with flash on the rear. Laser InfoTech is selling two Touchkon tablets in Nepal. The T907 is a 9.7-inch tablet with aluminum body which is powered by Rockchips RK3066 Dual Core 1.6 GHz Cortex A9processor and Android 4.2 Jelly Bean operating system. It uses 1 GB DDR3 RAM and 16GB NAND flash. It supports external memory up to 64 GB. It has a 0.3 MP front camera for video calling and 2 MP back camera. The tablet is available at Rs 20,700. Similarly, the other Touchkon tablet, T909, has 9.7-inch display. It runs on Android 4.2.1 Jelly Bean operating system and is powered by Amologic 8726M Cortex A9 Dualcore 1.5 GHz processor, 1GB RAM and 16GB NAND internal flash memory. It supports up to 64 GB external memory. The Touchkon T909 has slot for SIM, which means it supports 3G connectivity. It has 0.3 MP camera on the front and 2 MP camera at the back. It costs Rs 24,500. “We offer free home delivery service to customers who book the devices through our virtual showroom techbajar.com,” said Rajkarnikar. Laser InfoTech provides one year warranty on set and 6 months warranty on battery.

Sutlej expects PDA to be signed within two weeks

Indian power developer Sutlej Jal Vidyut Nigam Ltd, which is engaged in the development of Arun III hydropower project, is looking to sign project development agreement (PDA) before its survey license for the project expires on July 15. Officials of The Investment Board of Nepal (IBN) and SJVNL have are holding PDA negotiations for the past two weeks. “The negotiation is moving ahead at a satisfactory pace,” Radesh Pant, chief executive officer of the IBN said. The government had granted survey license to the SJVNL in July 2008. The export-orientated project based in Sankhuwasabha district is being developed pas per the built-own-operate and transfer (BOOT) modality. The government has given the project to SJVNL for 30 years as per the BOOT Act. The SJVNL will not have any difficulty in selling power generated by the project in India as one of its objectives is to address power deficit in India. Officials of SJVNL have said that they would export power to India even if two governments fail to sign power trade agreement (PTA). As there is no problem in market management, the PDA negotiation being held in Kathmandu is gaining momentum. “There lots of terms and conditions to be finalized. We want deal to be in national interest," Pant said. "We also want to ensure that the developer should not feel any obstacles while implementing the project." SJVNL has agreed to provide 21.9 percent of the power generated from the plant free of cost to Nepal.

'We are launching aggressive campaign to promote data business' - Nepal Telecom

The revenue of most of the mobile phone operators across the world is increasing lately due to contribution made by data business. The state-controlled Nepal Telecom (NT), which is facing fierce competition from private operators, is also coming up with an aggressive strategy to promote data sales. Republica caught up with Anup Ranjan Bhattarai, chief of NT´s Wireless Telephone Directorate, to discuss NT´s plan of raising data revenue and expanding wireless services, among others. Excerpts: Although CDMA service is considered appropriate for places with difficult terrain, NT has not been able to increase its customer base in rural areas. Why? NT launched CDMA service in 2005. Due to its growing popularity, the CDMA platform was operating in full capacity by 2010. Although we had initiated the process of expanding the capacity of CDMA platform in 2010, it took us quite some time to complete the work because of bureaucratic hurdles. Under the upgraded CDMA network, customers can gain access to services similar to those provided under GSM technology. What initiatives did you take to expand CDMA service since you were put at the helm of Wireless Telephone Directorate? Expanding network has been our top priority. We have set a target of expanding our services across the country within October. What benefits will customers get from IP-CDMA service? The main attraction of IP-CDMA is high-speed internet service. Using this platform, we can provide 3.1Mbps internet service in all towns, emerging towns and major village business centers across the country. This technology allows customers to view YouTube videos and transfer huge files through the internet. We think this service will pave the way for promoting e-governance, e-education, mobile banking service, telemedicine and other internet-related services in rural and remote areas. Is NT expanding IP-CDMA service in urban areas as well? IP-CDMA service will not be limited to rural areas. We are also expanding service in urban areas with the target of providing mobile broadband service. Through this, urban customers can gain access to faster internet service. Don´t you think NT is lagging behind in terms of earning revenue from data service? We have acknowledged the fact that data business has started making greater contribution to revenue collection of mobile phone operators. We are currently focusing on providing quality service even at times when demand for data goes up. We are currently providing CDMA, ADSL, Wi-Max, 2G, 3G and GSM services. NT will come up with an aggressive plan at the beginning of next fiscal year to promote data business. It is said that NT cannot implement programs on time because it is a state-controlled company. Is it true? As a state-controlled entity we are compelled to follow government rules and regulations. Although telecommunications business is of different nature, we still have to follow all the processes that apply to other government agencies. We also have no option but to select the lowest bidder while selecting contractors. Do you expect the situation to improve once a strategic partner enters NT? NT will not benefit from the entry of a strategic partner unless changes are made to the public procurement law, which compels us to choose the lowest bidder while handing out contracts. We have to simplify this system and fully utilize the expertise of the strategic partner so that we can leave our competitors behind

Qatar Airways announces discounted fare

Qatar Airways has introduced discounts of up to 20 percent on fare from Kathmandu to selected destinations via Doha. According to a press statement issued on Sunday, the special fares are for sale for 10 days starting July 1 and can be purchased from Nepal only. The seats are available in both economy and business class. "Passengers can book their ticket within the period and save up to 10 percent on economy and 20 percent on business class fares throughout Qatar Airways´s expanding network," said the statement. The travel validity for this promotion is between September 1 and November 30. Qatar Airways is currently flying to 128 key business and leisure destinations across Europe, Middle East, Africa, Asia Pacific and the United States.

Coca-Cola Named Creative Marketer of the Year

The Coca-Cola Company has been presented with the 2013 Creative Marketer of the Year Award at the Cannes Lions International Festival of Creativity, widely considered to be the world’s foremost celebration of creative excellence in brand communications. “We are humbled and honoured to receive this award, which has been in the making for many decades,” said Jœ Tripodi, chief marketing and commercial officer, who accepted the award on behalf of the company’s global marketing community and agency partners around the world. Since winning its first Cannes Lion in 1967, Coca-Cola has racked up more than 120 coveted awards for work spanning multiple brands, creative disciplines and geographies. That includes 20 awards won last week at the 2013 festival, led by “Small World Machines,” which shows that what unites us is stronger than what sets us apart. The inspiring film claimed nearly half of the company’s 2013 Lions.

Hotel Annapurna supports flood victims

Executives of Hotel Annapurna handed over a relief package meant to the flood victims of the Far-western region to Pramila Acharya, president of Zonta Club Nepal on Sunday. Zonta Club Nepal will coordinate the distribution of the relief materials contributed from the hotel staff. Thanking the staff, Shreejana Rana, director of Corporate Social Responsibility (CSR) and Research and Development (R&D) of the hotel, pointed out the quick and prompt response of the staff towards assisting the compatriots during the time of need. This relief package was donated to complement Hotel Annapurna’s CSR programme.

Mobile phones can be made in Nepal: Experts

SANTA CLARA (California), June 30: Experts have said that mobile phones can be manufactured in Nepal itself by using skilled yet cheaper technical manpower available in the country. “The market of mobile set in Nepal is growing. We can produce mobile sets in our own homeland,” Pramod Paudel, a Nepali engineer working with Intel Corporation, said. Speaking at a program organized jointly by Computer Association of Nepal (CAN) USA and American Society of Nepali Engineers, Paudel smartphones can be produced in Nepal at the cost of US$ 25-45 per set. “Around five thousand IT engineers are graduating from different colleges in Nepal every year. Smartphones can be manufactured in Nepal itself by utilizing their skills expertise,” added Poudel. He, however, added that the government should create environment conducive for firms interested to manufacture smartphones. Nepalis are paying a minimum of Rs 7,000 for smartphones. Other speakers at the program said there is a huge prospect for app developers in Nepal. According to conservative estimate, Nokia enjoys 48 percent share in Nepal´s mobile phone market followed by Samsung, Apple and HTC with market shares of 25, 10 and 5 percent, respectively. Sony, LG, Blackberry and Chinese sets are also available in Nepal.

Nepal SBI Bank supports flood victims

Nepal SBI Bank Ltd has extended its hands to the victims of floods and landslides by providing financial support of Rs 200,000 to the ´Prime Minister Natural Disaster Relief Fund´. Alok Kumar Sharma, managing director of the bank, handed over the check for Rs 200,000 to Chairman of Interim Election Government Khil Raj Regmi at the latter´s office in Singhadurbar on Sunday. Issuing a statement, the bank said it provide the amount as part of its Corporate Social Responsibility (CSR) initiatives

Nepal promoted in North India

Nepal Tourism Board (NTB) and Paschimanchal Hotel Association Pokhara jointly organized tourism promotional activities in Varanasi, Allahabad and Faizabad in Northern India in the last week of June. "The three-city border town sales mission was organized Varanasi, Allahabad and Faizabad on June 25, 26 and 27, respectively, to inform the North Indian travelers about Nepal´s tourism products and services," NTB said in a statement on Sunday. Around 30 hoteliers and tour operators from Pokhara and Bharihawa showcased their promotional package in the three Indian cities, the statement said, adding that the mission highlighted Nepal as an ideal, cool and next door destination on the lap of Himalayas for North Indian travelers. Nepali tourism entrepreneurs also held productive busines to business meetings with local tourism entrepreneurs of the three Indian cities. Govinda Oli, senior office of NTB, made a comprehensive Nepali tourism and destination presentation. Similarly, Basu Tripathi, former board member of NTB, and Hari Sharma shed light on why Nepal, especially Pokhara, can be an attractive destination for travelers from North India.

Investment Board Nepal (IBN) officials to visit Malaysia

A team of officials from the Investment Board of Nepal (IBN) are all set to visit Malaysia this week to hold interaction with the officials from the Malaysian Investment Development Authority (MIDA). "We will try to learn how the MIDA works and how it manages human resources," Mukunda Paudel, joint secretary at the IBN, said. Paudel will lead the Nepali team to Malaysia. Other members in the team include Krishna Acharya, under secretary at the IBN, Rita Regmi and Dilip Bahadur Kshetri. "The team will also try to learn how the MIDA runs promotional activities to lure fresh investment," Paudel said. The MIDA is the Malaysian government´s principal agency for the promotion of manufacturing and services in the country.

Binod Chaudhary feted in Bangladesh

Binod Chaudhary, president of Chaudhary Group, has been felicitated in Bangladesh. Speaking at a felicitation program organized by International Chamber of Commerce-Bangladesh, Chaudhary said small countries still find it very difficult to deal with each other. “Dealing with India is easy. But it is not easy for a small nation to deal with another," a statement issued by Chaudhary Gruop quoted Chaudhary as saying in the program. Meanwhile, Mahbubur Rahman, president of International Chamber of Commerce-Bangladesh, said the chamber was proud to honor Chaudhary. Chaudhary was in Dhaka to participate in 4th Social Business Day 2013 organized by Yunus Center

Bottlers, tankers halt water supply

Valley requires 350m litres of water daily, while daily supply by KUKL during dry and wet seasons stands at 80m and 150m litres Water suppliers -bottlers and tankers -have been on a strike since the last three days and Kathmandu valley -Kathmandu, Lalitpur and Bhaktapur districts -has started facing acute water shortage. They have threatened to intensify the protest but the government is silent on the issue. “We have been block “We have been blocking water supply in Kathmandu valley since Thursday. There is no bottled water and tanker supply,“ said coordinator of the agitation committee Bishnu Dahal. “But the government has not contacted us to resolve the problem.“ About half of the three million population of Kathmandu valley has been affected due to the water shortage. Four groups -Tanker Entrepreneurs' Association, Nepal Bottled Water Entrepre neurs' Association, Drinking Water Tanker and Boring Entrepreneurs' Association, and Nepal Transport Workers' Association -had submitted a 20-point demand to the Ministry of Urban Development in early May. The group had stopped water supply for three days in late May also. The group has demanded to exclude drinking water from value added tax net, open licence to supply drinking water from any source, and compensation from the government for any damage caused during strikes or bandhs. “We are ready to solve our problems through talks but the state has been ignoring us,“ Dahal said, adding that their strike will not stop unless their demands are met. Water suppliers have resorted to the strike because the government has ignored our demands, said president of Nepal Bottled Water Entrepreneurs' As sociation Dharma Nan sociation Dharma Nanda Shrestha. “We are ready to halt the strike once the government calls us for talks,“ he said. The Department of Commerce and Supply Management has not given priority to the issue, Shrestha added. The valley requires 350 million litres of water daily, while the daily supply by Kathmandu Upatyaka Khanepani Limited (KUKL) during the dry and the wet season stands at 80 million litres and 150 million litres, respectively. Private suppliers have vate suppliers have been filling the supply gap of over 150 million litres. Of the 700 water tanker operators in the valley, only 362 of them have obtained permission from the concerned authorities to supply drinking water. The 362 registered tanker operators include 56 water suppliers, 35 institutions, 60 apartment builders, 35 industries, 15 hospitals, 40 hotels and entrepreneurs, and 75 belong to KUKL, among others.  

Stock market up 7.97 points, banks gain

THE Nepal Stock Exchange (Nepse) last week gained 7.97 points, which analysts said was due to reports that central bank would hike the minimum paid-up capital requirement for banks and financial institutions (BFIs). The market which opened at 487.63 on Sunday closed at 495.60 points on Thursday. The benchmark index posted gains in the first four trading days before falling marginally on the final trading day of the week. On Tuesday, the Nepse index surged by 4.96 points — its largest single- day gain in a month. Nepal Stock Brokers’ Association’s President Narendra Raj Sijapati said reports about the possible hike in the paid-up capital requirement for BFIs played a crucial role in increasing prices of BFIs’ shares, which pushed up the entire market. “Investors could have been enticed by the ho

pe of benefiting from the possible issuance of rights and bonus shares by BFIs to increase their capital,” he said. Commercial banks’ group saw a double-digit rise in its subindex, while the Others group was last week’s biggest gainer (up 14.10 points). Finance Companies’ sub-index also posted gains. Last week’s losers were Insurance Companies, Hotels, Development Banks and Hydropower Companies. Indices of manufacturing and trading groups were stable at 878.17 and 177.05 points, respectively. The sensitive index that measures transactions of ‘A’ category companies was up 2.36 points to close at 123.96 points. Everest bank posted the highest individual transaction of Rs 47.43 million. Chilime Hydropower Company, Bank of Kathmandu, Kumari Bank and International Leasing and Finance were among the top five companies in terms of transaction worth. Nabil Balance Fund, with trading of 857,892 shares, topped in terms of the number of shares traded. The overall market transaction grew by 9.11 percent to Rs 428.5 million from the transaction of 262,977 shares. Previous week, the market turnover was at Rs 392.7 million from the transaction of 1,587,650 shares. ‘A’ category companies witnessed a turnover of Rs 232.5 million — 54.27 percent of the total transaction. The surge in the benchmark index has been attributed to reports that central bank would hike the minimum paid-up capital requirement for BFIs

Honda shifting focus to developing countries

SHIGERU Yamazaki is the director and senior vice-president - sales and marketing at Honda Cars India Limited. He was last week in Kathmandu for the launch of Honda Amaze, an entrylevel sedan from the Japanese auto major. Sanjeev Giri of the Post caught up with Yamazaki to talk about the new Honda car and the company’s strategies for Nepal. Excerpts With the Amaze, Honda has entered the economy car segment. Except for the Brio, Honda has so far been in the Nepali market only in the premium segment. Will this change the company’s strategy here? Definitely, we have strengthened our presence in the entry-level car segment. With the Amaze joining the Honda family in Nepal, the business here will get new dynamics. As for the strategy, we are actually not changing it, but expanding it. While our focus so far was just limited towards the premium segment, we will now be looking at the entry-level market as well. Since the Amaze boasts of several excellent features, it will also appeal to the premium segment car buyers. Now, we will slowly expand towards medium-income people. I am sure they will be delighted to own a Honda motor at such an affordable price. What makes you confident that Amaze will work in the Nepali market? The main factor that makes us confident about its (the Amaze’s) good run in the Nepali market is the customer profile similar to India. People from both India and Nepal have numerous similarities. Also, the car has been manufactured at our Indian plant and it boasts of facilities as per the requirement of customers of this region. How is the Amaze performing in India? The Amaze has done a brilliant job in the Indian market. The sales figure is better than what we had expected. The situation is such that we are already worried about waiting customers. We are also trying to increase our production capacity and looking forward to opening a new factory in Rajasthan within the next spring. Based on the current enquiries, we have to expand the current manufacturing facilities by 100 percent. Since the sales volume in Nepal is low compared to India, how important is the Nepali market for Honda? Honda is shifting important markets from the United States to Asian and Indian markets. We are now shifting our focus on developing countries. So that makes the Nepali market a key. The Amaze and the Brio have been exclusively manufactured for these markets. Sensing the huge potential of this region, we recently opened an R&D facility in India. So this shows we are focused on this market. And to grow here (the region), the Nepali market will definitely play an important role. The Nepali market is dominated by the likes Hyundai and Maruti Suzuki.What are your plans for increasing the market share here? Definitely, both these manufacturers are big in Nepal, and in India too. We are trying to localise our products so that we can reduce costs. This is a price sensitive market and reduction in the price will help us compete. Tell us about the new products the Nepali market can expect in the near future? Our President has already announced publicly that Honda will be having four new models launched in the Indian market within the next two years. So these models have high potential of being introduced in Nepal. However, I cannot assure all these products will be here in Nepal. Shigeru Yamazaki Director and Senior Vice-president Honda Cars India Limited

AirAsia to start India operations by 2013-end

As per Air Asia India’s plan, each of its planes will make around six to eight trips a day and the turnaround time per plane will be strictly 25 minutes MALAYSIAN low-cost airline AirAsia hopes to start its Indian operations with three Airbus planes by the end of this year with most statutory clearances in hand and hopes to break even in a year’s time, a top official said. “We are yet to get the NOC (no objection certificate) from the home ministry. Earlier we thought we will start our operations here by September. We hope to start our operations by the end of this year,” Tony Fernandes, group CEO at AirAsia, told reporters here on Saturday. In a three way joint venture partnering with Tata Sons and Arun Bhatia-promoted Telestra Tradeplace, the Malaysian airline plans to start a scheduled domestic airline. AirAsia will hold 49 percent stake in the joint venture, while Tata Sons will hold a 30 percent stake and Telestra Tradeplace 21 percent. According to Fernandes, AirAsia will start its Indian operations initially with three Airbus craft and add one plane every month. “There is no change in our initial investment plan of $20 million. That will remain the same as we are confident of being cash positive,” he said. He said the airline will have a total headcount of over 250 people during the first year of operations. Queried about the number of destinations AirAsia would fly by the end of first year of operations, deputy group CEO Kamarudin Meranun told IANS that it “was not the number of destinations that we fly that matters. It is the number of flights we make in a market. It saves marketing and brand promotion costs”. Meranun added that the key aspect is to keep the costs low for being a successful low fare airline. Fernandes said each plane will make around six to eight trips a day and the turn around time per plane is strictly 25 minutes. “The key is to have a proper cost structure. Low cost model is different from premium airline model,” he said. He said apart from passenger fare, AirAsia has other revenue streams like food sales, in-flight on the plane body advertisements, selling travel insurance, hotel rooms and others. “We are going to sell foreign exchange,” he disclosed. In India the airline will look at underserved markets, he said. “The Tatas will bring to the table local knowledge, marketing, strategy, distribution,” Fernandes remarked while refuting that AirAsia is charting the path for the Indian group’s entry into the sector. He said the company is in talks with several agencies to outsource some of the operations. “In Malaysia we do all the work—ground handling and others—by ourselves,” he said. On the branding side, Fernandes said the Indian airline will look at movies, music, sports and others.

Jute mill on the verge of closure

The owners are preparing to close the factory citing citing losses due to irregular power supply and lack of incentives from the government PROPRIETORS of CM Jute Mill have started the process of closing down the factory, citing losses due to irregular energy supply, expensive electricity demand charge and the lack of incentives from the government. The factory employs 500 individuals and produces 22 tonnes of jute every day. “Due to the government’s apathy, we are not in a position to operate the factory,” said Nandu Rathi, proprietor of the factory. “We found it worthwhile to shutter it down instead of incurring millions of rupees of losses.” He said energy problems and increased labour costs have been a big burden for the factory, which has been incurring losses for the last five years. Local industrialists said other jute factories will also be forced to close down if the government fails to provide regular energy supply, export incentive, spare parts and store material. There are 11 jute mills in operation in the country. Failing to compete in the Indian market due to higher operation costs, two jute mills have already been closed down. Rajkumar Golchha, central chairman of Nepal Jute Industry Association (NJIA), said all jute industries will ultimately close down is the current problems are not solved. “The government should introduce incentive packages in the upcoming budget for jute industries that have been employing thousands of individuals,” he said, adding the exemption of customs duty and value added tax (VAT) on the import of spare parts and store materials should be continued, and similar exemption should be given on diesel and furnace oil used operate generator during load-shedding. Although the Ministry of Commerce and Supplies had promised to offer a 10 percent cash incentive on the export of jute items to India, no jute factory has received the facility so far, according to industrialists. Stating that the Bangladeshi government offers a 10 percent cash incentive on the export of jute items, the industrialists said domestic jute products could become competitive in the international market if the Nepal government offers a similar facility. Golchha said jute factories export more than 95 percent of their products, amounting to Rs 5 billion, to India annually on an average. Mohan Chandra Ghimire, a jute expert, said the factories could also get some relief if the dependence on imported raw materials could be minimised by increasing the production of jute in the local level. The industries are forced to import more than 70 percent raw materials from India and Bangladesh. “An institutional provision is required for the development and expansion of jute farming in the country,” he said.

Govt to start construction of two hydel projects next fiscal

The two projects are Tamakoshi-V Hydropower Project (87 MW) and Budhiganga Hydropower Project (20 MW) THE government plans to start construction of two hydropower projects with a collective capacity of 107 MW from the next fiscal year. The projects are Tamakoshi-V Hydropower Project (87 MW) and Budhiganga Hydropower Project (20 MW). Ministry of Energy Spokesperson Shree Ranjan Lakoul said his ministry has proposed the Finance Ministry to incorporate these two projects in the budget for the next fiscal year. “The Finance Ministry is also preparing to announce the development of the projects through the budget as per our request,” said Lakoul, who is also the joint secretary at the Energy Ministry. The Energy Ministry proposed Tamakoshi-V project after the Finance Ministry sought at least one new and innovative project from each ministry to incorporate them in the upcoming budget. According to the Energy Ministry, the government will build Tamakoshi-V project with its own financing, while Budhiganga project will be developed under the loan assistance of Kuwait Fund for Economic Development and Saudi Fund for Development. The Tamakoshi-V project is cascade project of the under-construction 456- MW Upper Tamakoshi Hydropower Project (UTHP). The energy from Tamakoshi-V project will be generated from the water spilled from the UTHP tunnel. As the energy production from Tamakoshi-V only requires the construction of a tunnel and a pond for sedimentation, the project is expected to be cheaper. The Department of Electricity Development had issued survey license to Nepal Electricity Authority (NEA), on October 3, 2008, for the project. Energy Ministry officials said the Tamakoshi-V project is expected to be completed within the next five years. NEA’s preliminary feasibility study has estimated the project’s cost at Rs 14 billion. It will be designed as Peaking Runof- River (PRoR) model like the UTHP. Under the PRoR model, a project collects water for certain hours and generates energy later in full power. Energy Ministry officials said this project would generate 87 MW power round the clock for five months during the rainy season and would generate the same amount of power for 6-8 hours a day during other seasons. “Once announced in the budget, the NEA will prepare a detailed project report and then float a tender to select a contractor,” said the official. As far as Achham-based Budhiganga Project is concerned, it is estimated to cost around Rs 5 billion. The Finance Ministry in March had signed a loan agreement worth $18 million with Kuwait Fund for the poroject. “The process for signing a $20 million loan agreement with the Saudi Fund is underway,” said Madhu Kumar Marasini, joint secretary at the Finance Ministry. “Rest of the cost will be met by the government.” The Budhiganga Project, expected to be completed in the next four years, will generate 106.2 million units energy annually. Ministry officials siad the project’s cost would be relatively higher compared to other projects as construction of a 3-km access road and an 88- long transmission line is required.

Focus schemes on East: Poudel to Agri Ministry

AMID concerns about the alarming rice imports, Chief Secretary Lilamani Poudel has directed the Agriculture Ministry to focus its programmes on three eastern districts—Jhapa, Morang and Sunsari—which are the bulk rice producers. “These three districts have the potential to feed the entire population as productivity rate in these districts can be increased to what China—the largest paddy producer—currently has,” said Poudel at a programme held to mark Asar 15 here on Saturday. “Farm mechanisation and extension of proper research facilities will ensure sufficient food production,” he said, adding these districts have the highest irrigation coverage. Nepal produced 3,171 kg paddy per hectare last year, down 4.3 percent. China’s per hectare paddy productivity stood at 6,686 kg, while India produced 3,590 kg paddy per hectare in 2011-12. Concerned about the alarming rice import, Poudel said Nepal’s agriculture largely depends on rainfall and it would not be good idea to distribute resources in areas that are highly dependent on rain. “The Agriculture Ministry needs to focus on specific areas to boost paddy production,” he said. The ministry has said Nepal will face a rice deficit of 900,000 tonnes this year due to the decline in paddy output. The Trade and Export Promotion Centre statistics show Nepal imported rice worth Rs 11.60 billion (420,490 tonnes) in the first 10 months of the fiscal year. In the same period last year, the country had imported 286,995 tonnes of rice. Moreover, the number of food-deficit districts has jumped to 33 from last year’s 27. Migration of the youth for foreign employment is another worrying factor for the farm sector, he said. “In such a scenario, farm mechanisation is the best option to address growing labour shortage,” he added. Speaking about his recent Switzerland visit, Poudel said, “I saw a machine in a farm that is equal to 1,000 labours.” The chief secretary also expressed concern about the country’s failure to preserve traditional seeds that have been replaced by overuse of hybrids. “If this situation continues, we are going to be totally dependent on imported seeds,” he said. Last year, the delay in monsoon and fertiliser shortage affected the production of major crops, particularly paddy. The country’s paddy output dropped 11.3 percent to 4.50 million tonnes in 2012-13. According to the ministry, the country produced 567,746 tonnes less rice year-on-year. Chief Secretary Lilamani Poudel uses paddy transplanter on the occasion of Asar 15 in Khumaltar on Saturday.

Nepal requests Qatar to stop workers’ deportation

The request was made during the talks between the officials of the two countries on difficulties in the implementation of the Labour Agreement NEPAL has requested the Qatar government to stop deportation of Nepali workers failing to extend visa. The request was made during the talks held between the officials of the two countries to discuss difficulties faced on the implementation of the Labour Agreement. “It is the job of the hiring company to facilitate visa extension for workers,” said Binod KC, director general of the Department of Foreign Employment and a member of the talk team. He said the government should take action against companies not providing visa to workers. During the first “technical meeting” with the Qatari officials, the Nepali side requested not to arrest Nepali workers and deport them, according to KC. Many Nepalis have filed complaints against their employers in the Nepali Embassy saying their employers’ failure to issue identity cards led to their arrests. During the talks, Nepal also requested for Qatar’s help end the practice of dual contract papers. “Nepali workers come here for work based on the contract attested by the Chamber of Commerce and the embassy. But when workers arrive here, employers make them sign a different contract,” said Budhi Bahadur Khadka, coordinator of the Nepali talk team and chief of Labour Division of the Ministry of Labour and Employment. Khadka said they have asked the Qatari Labour Ministry to tally the second contract with the original one. Even as the Nepal government has fixed the minimum monthly salary of workers at 1,200 riyal, they are not getting the salary due to the practice of dual contact. Qatar is the first preferred labour destination for Nepali aspirants. An estimated 400,000 Nepalis are working in the country. The Nepali talk team also put forth agendas like easy departure for workers whose contract expire or face emergency problem to return home, barring the supply of Nepali workers to other countries from Qatar, insurance policy covering 24 hours, end salary scale provision based on country specific, permission to work for short term to the workers facing lawsuit and provision of interpreter in court and labour office. Qatari officials raised the issue of late supply of workers from Nepal and the workers launching protest programmes. “They have emphasised on the provision that allows companies to bring housemaids through individuals approach,” said KC. He said regarding the delay in supply of workers, the Nepali side told them that it was due to Qatari employees and Nepali outsourcing companies, not due to the government. Khadka said Qatar has taken the talks seriously which was held for the first time after the signing of the Labour Agreement in 2008.

World Bank to invest in 200-500MW hydro project

The World Bank, a multilateral donor agency, has expressed interest to invest in at least one large-scale hydropower project in Nepal, in a volte-face from its previous decision of discontinuing funding for big hydro projects. "The World Bank is interested in investing in a hydropower project with the capacity of 200 to 500 megawatts," Madhu Kumar Marasini, joint secretary at the Ministry of Finance (MoF), told Republica. This information was relayed to Marasini by Jack Stein, director, sustainable development, at the World Bank, and Salman Jaheer, director for regional integration, South Asia Region, at the World Bank. The high-ranking World Bank officials expressed interest to invest in Nepal´s hydropower sector at a meeting held in Dubai couple of weeks ago, according to Marasini, who heads International Economic Cooperation Coordination Division (IECCD) at the MoF. The World Bank had made a policy shift on investment in large-scale hydropower projects last May. "The World Bank is making a major push to develop large-scale hydropower projects around the globe, something it had abandoned a decade ago," The Washington Post, a US national daily, said quoting Rachel Kyte, the bank´s vice president for sustainable development and an influential top staff member. The focus will be development of major hydropower projects in Congo, Zambia, Nepal and elsewhere, the newspaper reported. The bank, which has already invested in the development of 400kV Dhalkewar-Majjafarpur transmission line, has indicated that it might invest in one of the most “bankable” hydropower projects. "The discussion on project selection has begun," Marasini said. "The bank´s Nepal office will be more engaged in identifying the project." The World Bank has not invested in any hydropower project in Nepal since the cancellation of 900MW Arun-III hydropower project in Shankhusawa district some 13 years ago. The Arun-III hydropower project was set to be developed by Nepal Electricity Authority (NEA) with loan assistance of the World Bank. The project was cancelled after launch of massive protests by anti-Arun-III groups, mainly led by ultra-leftist political cadres within the country. James Wolfensohn, the then president of the World Bank, had cancelled the project development in August 1995 following a telephone conversation with the then Prime Minister Manmohan Adhiakri, according to a World Bank statement. "The government is also not entirely prepared to give any specific project to the World Bank," Marasini said. "We will also do homework and discuss the issue with the bank."

AG expresses dissatisfaction

Auditor General Bhanu Prasad Acharya has expressed dissatisfaction over the apathy of the government in implementing suggestions put forth by the Office of the Auditor General (OAG) on different occasions. “We have noticed that suggestions put forth and weaknesses identified by the OAG are not properly heeded. The government agencies need to be serious about issues raised by the OAG,” said Acharya addressing a function organized to mark the 55th Anniversary of the OAG on Saturday. Khilaraj Regmi, chairman of the Interim Election Council, urged all stakeholders to monitor the abuse of state´s financial resources. Regmi also sought cooperation from all in promotion of good governance, transparency and accountability, which lay foundation of democracy. He also expressed readiness to strengthen physical facilities and human resources at the OAG and provide it greater autonomy. Finance Minister Shankar Prasad Koirala said the government was formulating rules to channelize foreign aid through the government´s budgetary programs to keep track of funds coming into the country.

Stuti Mero Mart opens 3 outlets

Stuti Mero Mart, a local chain of convenience stores, has expanded its presence in Kathmandu Valley by opening outlets in Ghattekulo, Katyayani Chowk and Sinamangal on Saturday. Sudip Thapa, executive president of Stuti Mero Mart, Bhaskar Raj Rajkarnikar, senior vice president of the Federation of Nepalese Chambers of Commerce and Industry, and Deepa Shree Niraula, a TV actress and brand ambassador of the mart, jointly inaugurated an outlet at Sinamangal. “We have ventured into retail business with the objective of providing impeccable shopping experience to customers at the local level,” said Thapa. Every Stuti Mero Mart outlet, which opens from 8 am to 8 pm, has a collection of around 7,500 items, both domestic and imported. These items range from spices, meat and confectionaries to cosmetic items, toiletries, liquors and kitchen wares. “Customers need not worry about prices, as we sell goods at very reasonable price,” Thapa said, adding, all outlets of Stuti Mero Mart are also providing free home delivery service for the convenience of customers. All the outlets of Stuti Mero Mart spread in an area of 2,000 to 3,000 sq ft. And each outlet employs 8-10 local staff, according to Thapa. "We are focusing on hiring local staff so as to generate employment opportunities at the local level," Thapa said. One of the major aims of Stuti Mero Mart is to expand its presence in all 35 wards of Kathmandu Metropolitan City. "We will be opening 17 more outlets in Kathmandu district within one and half years," ”hapa said. Upon completion of expansion process in Kathmandu, Stuti intends to venture into Lalitpur and Bhaktapur districts before penetrating into the markets located outside Kathmandu Valley. Stuti Mero Mart is also planning to launch an online store soon so that customers can place orders from home with the click of a mouse. The mart is currently offering three percent discount through a coupon valid for a period of one month. "B“t members of Stuti Multipurpose Cooperative will be entitled to discounts throughout the year," ”hapa said. Stuti Mero Mart is a venture of ANS Co that also operates ANS Creation, ANS Music and Movies, BTL Media and ANS Soft Incorporation, and Stuti Investment.

Janakpur goldsmiths launch protest

Bullion shops in Janakpur, which recently remained closed for 10 days due to protests launched by gold and silver dealers, have once again faced hurdles in running their businesses in a full-fledged manner due to agitated goldsmiths. Jewelry shops have remained partially closed for the last four days in Janakpur after more than 500 goldsmiths affiliated to a goldsmith association stopped working, putting forth six-point demand. Goldsmiths have demanded hike in wages, end to the practice of firing goldsmiths without a valid reason, introduction of a provision that requires jewelry shops to make jewelries from goldsmiths associated with the association and hike in soldering related payments, among others. Organizing a press meet, goldsmiths have threatened to launch series of protest programs if their demands are not addressed by Tuesday. These programs include padlocking of the shops affiliated with the Janakpur Gold and Silver Dealers´ Association (JGSDA) and sit-in at the shop of JGSDA President Amarnath Gupta. Ajay Thakur, president of the Goldsmiths´ Association Janakpur, said that gold and silver dealers are collecting huge soldering charges from customers and giving very little to goldsmiths. "We have demanded that gold and silver dealers give us whatever soldering charges are being slapped on customers," said Thakur.

Rupee falls to record low of 96.80

Nepali rupee slumped to record low of 96.80 this week as the Indian currency, with which rupee is pegged, continued its losing spree. Despite rupee´s depreciation, gold price went down by Rs 2,055 per 10 grams over the week. Currency Rupee lost a whopping Rs 1.74 against US dollar over the week to close at Rs 96.80 on Friday. The weakening of rupee increased import costs, but raised receipt of exporters as well as remittance receivers. Currency trading opened this week with exchange rate of rupee against US dollar fixed at Rs 95.06 on Sunday. The local currency shed 6 paisa on Monday and another 73 paisa to close at Rs 95.85 on Tuesday after Indian currency weakened against the greenback. Though rupee gained 34 paisa to close at Rs 95.51 on Wednesday, it again shed Rs 1.26 again on Thursday to settle at Rs 96.77. On Friday, the final trading day of the week, rupee lost another 3 paisa to close at a historic low of Rs 96.80. According to Reuters, the Indian rupee rallied on Friday on expectations that a global risk rally would help curb the recent heavy selling by foreign investors, while the government´s push to raise gas prices raised prospects for more fiscal and economic reforms. Though Indian rupee gained on Friday, Nepali rupee could not gain on as Nepal Rastra Bank (NRB) fixes exchange rates for the next day based on trading price of Indian currency with US dollar at 12 noon on the particular day. The local currency also lost 31 paisa against Euro and 44 paisa against British Pound this week. On Friday, Euro was exchanged at Rs 126.12, while British Pound was valued Rs 147.90. Bullion Gold lost its shine this week, as the price of yellow metal went down by Rs 2,055 per 10 grams over the week. The yellow metal closed at Rs 41,240 per 10 grams on Friday - the lowest since 2010. Bullion trading opened this week with gold price fixed at Rs 43,295 per 10 grams on Sunday. Gold became cheaper by Rs 85 on Monday to close at Rs 43,210 per 10 grams. The price continued went down by Rs 170 per 10 grams on Tuesday and Rs 730 per 10 grams on Wednesday. Gold made a nominal gain of Rs 230 per 10 grams to Rs 42,440 per 10 grams on Thursday. On Friday, however, gold lost a whopping Rs 1,400 per 10 grams to close the week´s trading at Rs 41,240 per 10 grams. The price of silver also went down by Rs 21.50 per 10 grams this week. Silver was traded at Rs 681.50 per 10 grams on Friday

ADB to provide $20m grant for skills training

The Asian Development Bank ( ADB ) is providing a US$ 20 million grant to the government of Nepal to give market-oriented skills training to thousands of aspiring young men and women who are unemployed or underemployed. The grant, recently approved by the ADB ’s board of directors, will help the government implement key aspects of its Technical and Vocational Education and Training (TVET) Policy 2012 by improving the quality, relevance and efficiency of the country’s technical and vocational education and training institutes. “Nepal critically needs higher and employment-centric economic growth, and the lack of skilled labour is a key constraint,” said Kenichi Yokoyama, country director of ADB ’s Nepal resident mission. “The project will focus on improving training for young people in the construction, manufacturing and services sectors where there are large skill gaps.” With the grant, the Skills Development Project will provide basic level training and employment services to 45,000 people, at least 40 percent of whom will be women and 30 percent from excluded groups. Private sector training and employment service providers will be engaged through performance-based contracting. The project will improve the quality and relevance of TVET by transforming 10 public TVET providers into more efficient, market-driven model institutes.

UPGRADED VERSION OF KIA RIO TO BE ROLLED OUT

The sedan will be available with a six-speed manual or a four-speed gate-type automatic transmission, while the hatchback will come with a four-speed automatic or a six-speed manual transmission CONTINENTAL Associates, the sole authorised distributor of Kia four-wheelers in Nepal, is all set to roll out an upgraded version of the Kia Rio sedan and hatchback. According to the company, the new models are being introduced following overwhelming response and increase in demand among domestic car buyers. “The new Rio cars will come with full options and feature automatic transmission, air bags and sunroof,” said Chatra Balayer, senior manager at Continental Associates. According to the company, the vehicles will be imported directly from Kia Motors’ headquarters in South Korea. “The new Kia products being introduced in Nepal are of international standards and are equipped with features that have been tested and proven for the American and European markets,” said Balayer. The vehicles are equipped with safety features like airbags and anti-lock brakes and are powerful and comfortable to drive. Both the new models are equipped with 1.4-l Gamma inline four-cylinder, 16-valve, DOHC gasoline engine with Continuous Variable Valve Timing (CVVT). This engine, according to the company, is capable of producing a power output of 107 hp at 6,300 rpm and a peak torque of 14.0 nm at 4,200 rpm. The sedan will be available with a six-speed manual transmission or a four-speed gate-type automatic transmission. As for the hatchback, it will be available with a four-speed automatic transmission or a sixspeed manual transmission. The sedan and the hatchback have similar cockpits. According to the company, both the models have a longer wheelbase compared to the previous version. Besides, higher strength steel makes up 83 percent of the body that helps to improve torsion rigidity by 31 percent. The new Rio hatchback comes with a thinner “tiger nose” front grille, the lower fascia intake cut-out size is larger and the headlights have a four-lens design while the sedan features a two-lens design Both the cars will have spacious luggage areas. The hatchback’s cargo bay has a 15 cu ft capacity while the sedan offers 13.7 cu ft. The rear seat, which splits 60/40, can be folded to increase cargo space. Kia has powered both the Rio variants with MacPherson struts with stabilizer front suspension and torsion beam axle rear suspension. The Rio hatchback sports 17-inch alloy wheels, bigger front disc brakes and drum brakes at the rear, leather seats, leather door trim, leatherwrapped gearshift knob, alloy pedals, steering wheel-mounted audio and cruise controls, trip computer, supervision cluster, glove box cooling, an audio system (radio, CD, MP3, USB ports, iPod cable, Bluetooth) with six speakers, smart key with push start/stop button and keyless entry with alarm, rear parking assist and folding and heated power outside view mirrors with side repeaters. According to Balayer, the new Rio is more comfortable compared to competing vehicles available in the Nepali market. “We feel that there isn’t any competitor to the Rio as Indian manufacturers haven’t incorporated features like that of the Rio and those from Japanese manufacturers are costlier,” he said. Continental Associates stated that both the sedan and the hatchback would be priced in the range of Rs 3.2 to Rs 3.8 million. Continental Associates sells Kia cars from major cities like Pokhara, Narayanghat, Butwal, Nepalgunj, and Biratnagar.

Himalayan Bank CSR

As part of its CSR (Corporate Social Responsibility) initiative, Himalayan Bank Limited has provided daily essentials and commodities to the elderly people at Jyoti Ashram in Thankot, Kathmandu. Himalayan General Manager Sushil Joshi handed over the items amid a programme. In a statement, bank said it provided items like rice, pulses, edible oil, sugar, tea and apparels, among others.

Janata Bank, NT tie-up

Janata Bank Nepal has partnered with Nepal Telecom to provide utility payment service. In a statement, the bank said the Janata bank customers can pay the bills of landline, GSM pos-paid and ADSL services. The service will be available from all the outlets of the bank.

FNCCI awards to be presented on Aug 18

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has scheduled the FNCCI National Excellence Award 2013 for Aug 18. It said 16 awards under eight categories will be presented to outstanding business institutions. The FNCCI has been honouring business organizations with the Excellence Award since 2001 with the aim of promoting quality goods and services. “The main aim of the award is to encourage business organizations to improve the quality of their management and deliver customer service excellence,” said Saurabh Jyoti, chairman of the FNCCI’s productivity and quality committee. He added the award would also inspire organizations to make their products competitive by enhancing their quality. According to the FNCCI, winning business institutions are assessed on the basis of their production process, management, productivity, quality and market. It separates the candidates into subdivisions of large, medium and cottage groups. The federation has been honouring subgroups with the FNCCI National Excellence Award, FNCCI-People Excellence Award and FNCCI-Service Excellence Award. The FNCCI said it has planned to give awards in five additional categories from this year. The newly added segments are Best Brand— People’s Choice Award, Business Person of the Year— Editors Choice Award, NRN— Business Person of the Year, Lifetime Achievement Award, NYEF—Young Achievers Award (Male) and NYEF—Young Achievers Award (Female). The FNCCI has fixed the deadline of July 14 for its associate member organizations to apply for the awards.

NPC endorses approach paper of three-year interim plan

A meeting of National Planning Commission (NPC) chaired by Interim Election Government Chairman on Thursday Khil Raj Regmi endorsed the approach paper of the three-year interim plan with some revisions. The meeting also decided to get the document endorsed by the meeting of the National Development Council to be held next week, according to NPC Joint Secretary Puspa Lal Shakya. The council is represented by government ministers and representatives from political parties. The new periodic plan (2013- 2016), designed with an objective of upgrading Nepal to a developing country from the current status of least developed country within 2022, aims to attain an average 6 percent economic growth annually over the period. The country, however, needs to achieve average 7 percent growth to attain the target of becoming a developing country within 2022, according to the NPC. The proposed plan also aims to decrease the poverty rate to 18 percent from the current 23.8 percent. It plans to increase employment by 3.2 percent and keep inflation at 7 percent over the period. The government plans to spend about Rs 1.4 trillion in the next three, of which Rs 11 billion will be fulfilled from the revenue generation within the country. The rest will be arranged from foreign aid and internal loans. The government has planned to bring the three-year plan before the budget announcement so that policies and programmes could be formulated based on the same. The plan’s major priority areas include development of the energy sector, commercialisation of agriculture, improvement in basic education, health, drinking water and sanitation, good governance, expansion of roadways, development of physical infrastructures, tourism and trade. Interim Election Government Chairman Khil Raj Regmi and other government officials during a National Planning Commission meeting in Kathmandu on Thursday. POST PHOTO: KIRAN PANDAY

Fuel pumps operated by police, army sealed for cheating customers

A government monitoring team on Thursday sealed a diesel dispensing machine of Nepal Police’s Petrol Pump in Naxal, Kathmandu, for providing customers with less amount of fuel than they pay for THE government’s monitoring on fuel stations has shown even the pumps operated by the Nepal Army (NA) and the Nepal Police are involved in cheating customers. A joint monitoring team of the government on Thursday sealed a diesel dispensing machine of Nepal Police’s Prahari Kalyan Kosh Petrol Pump in Naxal, Kathmandu, for providing customers with less amount of fuel than they pay for. The monitoring team comprised of officials from the Department of Commerce and Supply Management, Commission for Investigation of Abuse of Authority (CIAA) and Nepal Bureau of Standards Metrology (NBSM). “Out of five fuel pumps of Nepal Police, one diesel pump has been sealed as it was found dispensing 30 ml less fuel on every 5- litre sales,” said Hari Narayan Belbase, director of the Commerce Department. Earlier on Tuesday, Shakti Devi Petrol Pump operated by the army in Lagankhel, Lalitpur, was found selling less diesel and petrol than what customers pay for. The inspection team had prohibited the pump from fuel trading until the next notice. During the monitoring, the pump was found selling 50ml less diesel and 15-20ml less petrol on every 5-litre sales. The monitoring team on Thursday also inspected Sajha Petrol Pump (Pulchowk), SP International Ink (Pulchowk), NA’ Ripu Mardini Petrol Pump (Bhadrakali) and Trishakti Bhawani Fuel Centre of Harishiddhi (Lalitpur). The pumps were, however, found being operated under the government-set standards, according to the Commerce Department. The government bodies — Commerce Department, NBSM, Department of Food Technology and Quality Control — have increased the frequency of market monitoring after the CIAA instructed them to expedite monitoring to regulate the market effectively. On Tuesday alone, nine petrol pumps of the Kathmandu valley were inspected, out of which only two pumps — Valley Rikesh Suppliers of Gairigaun, Baba Oil Stores of Kalanki, and Jayashree Ganesh Oil Stores of Dhungeadda — were found clean. As per the monitoring report of the Commerce Department, Unique Fuel Centre (Balkumari) and Namaste Oil Store (Gwarko) had problems in calibration of their fuel dispensing machines and were instructed to correct them first to resume sales. On Wednesday, the inspection team had sealed Siddhartha Fuel Centre of Lokanthali, Bhaktapur. The Commerce Department said Siddhartha’s both petrol and diesel dispensing machines were less fuel than what customers pay for. “The pump was found selling 230-265 ml less petrol and 180-185 ml less diesel in sales of every 5 litres,” said Belbase. He said the pumps that were found cheating customers will face action as per the Nepal Standards Act. The Commerce Department is also planning to file a case based on the Consumer Rights Protection Act. Also on Thursday, a monitoring team coordinated by the Commerce Department on Thursday inspected Mayos noodles factory of Himalayan Snacks and Noodles located in Ugratara, Kavre. Compared to previous years, the government has increased market monitoring activities this year. However, the number of action taken and/or cases filed against the wrongdœrs is very less, according to Consumer Rights activists. The government in the first 11 months of the fiscal year inspected around 900 businesses. “Only seven cases were filed in the court this year and that too were based on complaints not monitoring of the government,” said Jaggannath Mishra, a consumer rights activist. He stressed on the need for result-oriented inspection.

‘Paralysis’ at NTA puts entire telecom sector in chaos

Attempts to appoint a chief at NTA have been engulfed in disputes over the selection of ineligible candidates due to political pressure THE Nepal Telecommunications Authority (NTA) has been “paralysed” due to a series of controversial decisions by the government that have been regularly challenged at court. All the tasks related to licence, tariff approval and new programmes have remained pending because the NTA has no chairman. Attempts to appoint a chief executive have been engulfed in disputes over the selection of ineligible candidates due to political pressure. “Nothing important is happening except for normal administrative work so that the staff can get their monthly salaries,” said an NTA official. He added with the NTA’s ad hoc board not being able to hold meetings, they had not been able to renew licence of internet service provider (ISP) Web Surfer and limited mobility licence of United Telecom Limited (UTL) for Morang and Sunsari. Similarly, the NTA’s annual programme for the next fiscal year, licence issuance to new network service providers (NSPs) and ISPs, tariff approval of Nepal Telecom and Ncell, licence scrapping of four ISPs who have remained out of contact, utilisation of the Rural Telecommunication Development Fund (RTDF) in the district optical fibre plan, study for 4G spectrum auctioning and assignment of WiMax spectrum to ISPs, among others, have remained in limbo. NTA regulates and monitors more than 200 licensees. The sector itself has been hurt due to the perpetual controversies generated at every step of the way by the government’s ill-advised decisions regarding appointment, unified licence and spectrum policy. Meanwhile, the NTA has also not been able to fill vacant posts which has left it short-handed. Five posts including that of a deputy director and engineers have been scrapped in the last one year. “The NTA cannot take policy-level decisions,” said director Ananda Raj Khanal. He added that they were reluctant to take urgent decisions for fear of running into legal hassles as only the board is authorized to do so. The uncertainty has prevented NTA from carrying out many projects that were approved for the current fiscal year. Khanal said that they gave the go-ahead only to projects costing less than Rs 350,000. “Since technology is changing so rapidly, decision making has to be fast and effective to adopt new technology,” said Surya Bahadur Raut, a telecom expert. He added that because of habitual delays, WiMax has just been launched in the country when other countries are already switching to 4G technology or long-term evolution. The sector started descending into chaos last August when NTA chairman Bhesh Raj Kanel resigned in protest against lack of cooperation from the Ministry of Information and Communications. Subsequently, the government named Digambar Jha as the new chairman. His appointment was challenged at the Supreme Court which issued a stay order leaving the NTA headless.

FDI inflows down 2.85pc in 2012

DESPITE the announcement of Nepal Investment Year 2012-13 and formation of Investment Board Nepal, foreign direct investment (FDI) inflows in 2012 were 2.85 percent lower than the figure of 2011. Nepal attracted FDI worth $92 million in 2012, against $95 million in 2011, according to the latest World Investment Report - 2013 prepared by the United Nations Conference on Trade and Development (UNTCTAD). What is more worrying is Nepal stood second last in attracting FDI in 2012— just ahead of Bhutan, but behind war-torn Afghanistan. Afghanistan received $94 million, while Bhutan got $16 million in FDI in the year, according to the report. Other South Asian states are far ahead when it comes to attracting FDI. Investment Board Nepal CEO Radhesh Pant, however, said despite decreased FDI inflows, commitments for investment have been high in 2012. “We will probably see more FDI inflows in the coming years,” he said. According to Department of Industries, FDI commitments in the first half of the fiscal year was at Rs 9.53 billion, up from Rs 7.14 billion in the entire FY2011-12. Nepal is among the 18 least developed countries (LDCs) that attracted less than $100 million in FDI in 2012. Although the total FDI into LDCs increased by 20 percent to $26 billion, Nepal is among the countries that posted decline in FDI inflows, according to the report. FDI growth in LDCs was led by strong gains in Cambodia (inflows were up 73 percent), the Democratic Republic of Congo (up 96 percent), Liberia (up 167 percent), Mauritania (up 105 percent), Mozambique (up 96 percent) and Uganda (up 93 percent), the report said. It said Nepal is also among the six landlocked countries that received FDI between $10 million and $99 million. Only Burundi received less than $10 million in FDI. Pant said political and policy instability has been the major problem in attracting FDI since 1990, not only in 2012. “The investment year was planned with a hope that the country would get a new constitution and would head towards stability,” he said. “But unfortunately, the hopes were shattered after the dissolution of the constituent assembly.”

Economic backdrop poses challenges to meet targets

The government has revised down the economic growth projected target twice this year. In the monetary policy for this year, the overall economic growth target was set at 5.5 percent before it was revised down to 4.2 percent in the Mid-term review of budget and then revised down again to 3.6 percent in the Annual National Account Estimates of Central Bureau of Statistics released in April. Officials have attributed the slowing growth to weak performance in capital expenditure in the absence of timely announcement of a full-fledged budget for the current fiscal year. Over the last three years, average economic growth stood at 4 percent but this year’s estimate is even below that. The agriculture sector, which is mainstay of the economy contributing over one-third of the Gross Domestic Product (GDP), performed badly, posting 3.6 percent growth over the year against a target of 3.9 percent. The non-agriculture sector reported 4.2 percent growth in contrast to a target of 6.4 percent growth. With the results reported below the target in these sectors, people living below the poverty line also could not go below 23.8 percent against the target of 21 percent. The industrial sector, which used to contribute around 15 percent of GDP a decade back, has now been so weakened that its share dropped to below 6 percent. Consequently employment generation has increased only by an average of 2.9 percent over the period as against 3.6 percent growth envisaged by the current 12th Plan. Against the back drop of this unsatisfactory economic performance, the National Planning Commission (NPC), the apex policy making body of the government, has set an ‘ambitious’ target to see Nepal graduate from Least Developed Country to Developing Country status. The proposed concept paper of the upcoming three year plan, which is going to be finalized next week, has set a target of achieving 4.5 percent growth in the agriculture sector, up from this year’s 1.3 percent. Similarly, the plan envisaged increasing growth of the non-agriculture sector to 6.7 percent in next three years from the existing 5 percent. The 13th three-year plan has set a target of achieving 6 percent annual economic growth, though prospects for better performance of the agriculture and non-agriculture sector is bleak as is the business environment of the country. Achieving the targeted growth in agriculture is not easy for the government, given unreliable monsoon rains, frequent shortage of agriculture inputs such as fertilizers, limited areas of irrigation and slow progress in farm commercialization. The industrial sector, which was once a vibrant sector, has been passing through continued slowdown amid continued industrial strikes, perennial scarcity of power and shortage of skilled workers. The next plan has targeted growth of agriculture and fishery by 4.5 percent, industry and mining by 4.7 percent, electricity by 8.2 percent and construction by 5.5 percent. Similarly, the wholesale and retail business has been targeted for 5.6 percent growth, hotel and restaurants by 8.6 percent, and transport, storage and communication by 8.4 percent in the next three years. “In the absence of political government, no one is ready to take ownership of the plan to achieve the targets set by 13th plan. As the country is passing through a slowdown in the industrial sector, lack of massive commercialization in the farm sector and slowing exports, attaining such targets in different crucial sectors is very difficult,” said former Finance Minister Dr Ram Saran Mahat. Though the plan has set a target of bringing down the number of people living below the poverty line to 18 percent from the existing 23.8 percent, the economy is not going in this direction. Industrial slowdown has jacked up imports significantly while export growth is nominal, leading to a skyrocketing trade deficit. According to data compiled by the Trade and Export Promotion Center (TEPC), Nepal had a trade deficit of Rs 434 billion or Rs 1.44 billion per day during the first ten months of the current fiscal year. Out of a total of Rs 557 billion in foreign trade, exports covered only 11.2 percent or Rs 62.71 billion and trade deficit increased by 24.8 percent compared to the figure recorded during the same period last year. In a brief overview of the existing three-year plan ending mid-July this year, the draft concept paper has identified increasing the share of consumption in GDP, almost one-fourth of the population under poverty line, lack of commercialization in agriculture, scarcity of farm output, politicization in industrial sector, frequent strikes, deficit of energy, shortage of skilled workers, disruption in implementation of infrastructures, flourishing the culture of impunity, as the major challenges ahead to achieve the set targets. Sectors prioritized by the draft of concept paper of the next plan -- infrastructure, agriculture, energy, human resource development and effective use of public resources --not immune to these problems. “Given the poor economic performance of the economy, achieving the set targets for the coming plan is not easy. We have to learn from the past to deal with the challenges ahead,” Gopi Mainali, joint-secretary at NPC, said. The government has outlined strategies to achieve the targets set in the next plan. The strategies include achieving inclusive economic growth, increasing the contribution of private, public and cooperative sectors in the development process, development of physical infrastructure, enhancing access of people to quality social services, strengthening good governance in public and other sectors, strengthening economic and social empowerment of targeted groups and minimizing the adverse effects of climate changes. “Though the programs and strategies proposed in the draft are economically significant, achieving the targets in the absence of political government is challenging,” Mahat, who is also a senior leader of Nepali Congress, said. Creation of employment opportunities in the country has become further challenging as the government has failed to regain the confidence of investors on the back of prolonging political instability in the country. “Without commercialization of agriculture through adoption of mechanization we can’t achieve employment target as the agriculture sector hold high potentiality to generate job opportunities within the country. But the existing system of agriculture can’t support the targeted growth in agriculture,” says Dr Chandra Mani Adhikari, economic researcher. Adhikari also said Nepal’s agriculture sector which is highly dependent on monsoon and farmers’ own initiative rather than government effort, can’t be promoted without aggressive programs to support its commercialization. He is also not optimistic about achieving the set target in the industrial sector as manufacturing industries are running at around 54 percent capacity due to power shortage and scarcity of workers, among other reasons. “Even if the private sector increases investment and capital expenditure is significantly improved, overall economic growth will hover at around 5 percent over the next three years. But given the unfavorable climate for investment we are not optimistic for that,” added Adhikari.

Government, Sutlej confident of inking key deal on Arun-III

The development of one of the largest hydropower projects in the country, the 900-megawatt Arun-III, has picked up momentum after 30 years of fuss and floundering, with the government and Indian power developer Sutlej Jal Vidyut Nigam Ltd (SJVNL) finally beginning negotiations on the project development agreement (PDA). The government and SJVNL have both expressed a high level of confidence that the key agreement for commencing the project construction would be inked. The Investment Board of Nepal (IBN) and SJVNL kicked-started the PDA negotiations last week. “We started negotiations with SJVN and things are taking a right direction,” Radesh Pant, chief executive officer of IBN, told Republica on Thursday. Expressing confidence over developing the project, R. P. Singh, chairman and managing director of SJVNL, said there was no fear of losing the project. “Now the project is moving. The PDA discussions are on. It is right that the PDA was submitted around two years back. What can we do, this is the way with Nepal, our partners on the project,” reports Live mint, an Indian newspaper, quoting Singh. “I am quite sure, the way the negotiations are on with IBN, that it will be sorted out.” The development of the project, which has always gotten politicized, seems finally to be happening as both the government and the developer express the same level of confidence. “I am sure the deal will be sealed. But I can’t say whether it will take just a few weeks or around a year to finalize all the terms and conditions of the PDA,” Pant said. The project based in Sankhuwasabha district was initially scheduled to be developed by the government itself with the assistance of the World Bank. James Wolfensohn, then president of the World Bank, cancelled the project development in August 1995 in agreement with the CPN(UML)-led government, after a telephone conversation with then prime minister Manmohan Adhikari, according to a World Bank news release. SJVNL, which has agreed to provide 21.9 percent of the power generated from the plant to Nepal free of cost, is yet to finalize different issues related to the PDA. The export-oriented project will get a generation license from the government after it demonstrates strong enough financial resources. SJVNL is targeting to utilize the energy generated from the project to meet the growing demand for electricity in the Indian market. “SJVNL itself seems enthusiastic to take the project forward but it might just be a gesture,” said a legal advisor associated with Herbert Smith, an international legal advisory body based in London. Herbert Smith, which developed the PDA template -- a baseline document for PDA negotiations -- is also supporting IBN to negotiate with the developers. SJVNL had already submitted a detailed project report for Arun-III in 2011. The report is still under consideration. The government has handed over the project to SJVNL under a built-own-operate-transfer (BOOT) scheme for 30 years. It is still unclear exactly how all the issues related to the project will move forward, Pant said. Large export-oriented hydropower projects have been politicized in the past, mainly by the ultra-leftist forces. The Mohan Baidha-led CPN-Maoist is still against projects such as Upper Karnali, Upper Marsyangdi and Arun-III, in which Indian developers are involved. Quoting former Indian ambassador to Nepal Shiv Mukherjee, Live mint has written, “Hydroelectric power and its potential have been highly politicized in Nepal. I won’t comment on specifics…”

Export of a majority of NTIS goods declines

Exports of more than half of the goods selected under the Nepal Trade Integration Strategy (NTIS) -- the government’s blueprint to promote exports of products with high potential –dropped during the first ten months of the current fiscal year. Hoping to give a boost to slowing exports, the government had introduced NTIS in 2010 June identifying 12 goods and seven services to be prioritized for production and exports. The Trade and Export Promotion Center (TEPC) stated that export of noodles, essential oils, pashmina shawls, hand-made Nepali paper, natural honey, silver products and woolen products dwindled during the review period compared to the same period last year. Export of noodles and essential oils plunged by 15 percent and 17.2 percent to Rs 454.97 million and Rs 54.76 million respectively during the review period. Similarly, export of pashmina, hand-made paper and natural honey tumbled by 7.5 percent, 14.5 percent and 97.5 percent to Rs 1.56 billion, Rs 411.71 million and Rs 5,000 respectively. Nepal exported silver products and woolen products worth Rs 125.87 million and 332.18 million during the review period, down by 37.7 percent and 18.3 percent respectively. However, export of lentils, black cardamom, tea, ginger, medicinal herbs, and iron and steel products increased during the period. According to TEPC, Nepal exported lentils valued at Rs 2.39 billion during the review period, up by 20 percent from the corresponding period last year. Exports of black cardamom and tea also increased by 2.1 percent and 37.4 percent to Rs 3.01 billion and Rs 1.57 billion respectively. Similarly, export of ginger and iron and steel products also went up by 217.2 percent and 4.4 percent to touch Rs 1.06 billion and Rs 9.90 billion respectively. The government has already allocated around Rs 170 million to promote the goods and services included in NTIS. Overall export of NTIS goods increased by around 10 percent to Rs 21.99 billion during the review period. However, export of services is almost negligible and the government lacks proper record for that.