IMS launches three new SAMSUNG GALAXY SMARTPHONES

INTERNATIONAL Marketing Services (IMS), the sole authorised distributor of Samsung mobiles in Nepal, on Tuesday introduced three new smartphones—Galaxy Mega,

Galaxy Core and Galaxy Pocket Neo. The company has said the new devises come with distinctive features and specialties. Samsung is the market leader in the country’s smartphone market with almost all of its models performing well. According to IMS President Dikesh Malhotra, the company commands around 60 percent market share in the domestic smartphones market. The company expressed confidence that the newly launched devices will be successful in capturing a descent market in their respective segments. “We have so far focused only on high-end devises. But now, we have changed our strategy and we will also launch low-end models along with the high-end ones,” said Malhotra, adding the new phones will cater to the needs of the people from all economic backgrounds. “We will be bringing in cell phones costing from Rs 2,500 to Rs 10,000.” This move, according to Malhotra, will increase Samsung dominance in the domestic cell phone market. The Galaxy Mega features a mammoth 5.8 inch qHDTFT screen. It is powered by Android Jelly Bean (v4.2) Operating System (OS), which has been mated with a 1.4 GHz dual-core processor and 1.5 GB RAM. The phone comes with 8 GB internal memory, which can be expanded up to 64 GB through a microSD card. IMS has priced the device at Rs 44,000. Similarly, the Galaxy Core runs Andorid Jelly bean (v4.1) OS and is powered by 1.2 GHz dualcore processor and 1 GB RAM. The dual-SIM phone comes with a 4.3-inch screen. Like Mega, the Core also has an inter- nal memory of 8 GB which can be expanded up to 64 GB. The device has been priced at Rs 28,500. The other new device from the company, the Galaxy Pocket Neo is also a dual- SIM smartphone. It runs Android Jelly Bean (V4.1.2) OS and comes with 512 MB RAM. It has 4 GB internal memory which can be upgraded up to 32 GB through a microSD card. Features like GPS and Wi-FI are available in the device. The company said device is available for Rs 12,300. IMS said the newly launched devices are available at all the exclusive Samsung stores and retail outlets across the country.

Govt completes financial evaluation for the implementation of the electronic driving licence project

THE Department of Transport Management has completed the evaluation of financial proposals submitted by three shortlisted firms for the implementation of the electronic driving licence project and has forwarded the evaluation report to the Asian Development Bank (ADB), the financer of the project. Based on ADB’s opinion, the government will select one among the three bidders to implement the $2.3-million project. The bidders are India’s Madras Security Printers, Spain’s Indra Sistemas SA, and Malaysia’s IRIS Corporation Berhad. The project aims to issue electronic driving license and blue books to vehicle owners. However, the shortlisting of the Indian firm, which has “controversial records” in India, has invited controversy in the project. Complaints have been filed at department and the Commission for Investigation of Abuse of Authority (CIAA), stating the department has been preparing to award the project to Madras Security Printers, which according to the complaints, has been blacklisted in India. The complaint states the Unique Identification Authority of India (UIDIA) has blacklisted the firm for selling personal data collected for biometric identity card to private companies and sub-contracting the projects. Department officials, however, said they were not aware whether the Indian firm had been banned from working in India. “It was shortlisted based on evaluation of the technical proposal,” said an official of the department. “We have sent the evaluation report of financial bids along with the complaints received to the ADB,” said Sudarshan Prasad Dhakal, director general of the department. “The contract will be awarded to one of the three firms based on ADB’s recommendation.” Leaving aside the controversy, the Indian firm is one of the favourites to win the contract based on its technical proposal although it is the second lowest bidder in financial terms, a member of the bid evaluation committee said. “Its chance looks stronger as the financial proposal holds only 20 percent of weightage in the evaluation,” he said. As per the companies’ financial proposals submitted on July 17, Malaysia’s IRIS Corporation has bid the lowest $1.16 million. Madras Security Printers stood second with $1.5 million and Spanish Indra Sistemas’ quoted the highest at $2.1 million to undertake the project. The evaluation committee member said the Indian firm has received good marks in the evaluation of the technical bids carried out about five months ago. The technical proposal and its marks hold 80 percent weightage under the Quality and Cost Based Selection (QCBS) method. The bid evaluation was carried out based on the QCBS method. Under the method, a bidder posting the highest score will be awarded the contract. The bid evaluation team member, however, did not divulge the marks bagged by the three competing firms. The government has forwarded the evaluation report to the Asian Development Bank, the financer of the project

Tunnel at Kulekhani project completed

THE Kulekhani III hydropower project has marked a major breakthrough with the completion of a tunnel to bring water to the powerhouse. The final section of the tunnel from Bhainse- Sannanitar was completed on Monday. Sino Hydropower Company has been constructing the 14 MW Kulekhani III project. The digging ceremony for the last part of the tunnel was attended by representatives from the local administration, political parties, journalists and local people. Construction of 2,220 m out of the tunnel’s total length of 4,221 m was completed on Sunday evening. Project chief Madhu Sudan Pratap Malla said the breakthrough in the work has been achieved after digging the main tunnel. Work on the Bhainse-Sannanitar segment started in July 2008. It took five years to complete the construction of the tunnel. Similarly, construction of four audit tunnels having a length of 1,900 m has also been completed. According to the company, around 66.14 percent of the project has been completed. The project has completed the electromechanical design and the construction of gates of the power plant. It has also completed the installation of the draft tube diffuser and drain pipe in the production plant. “If work continues at the same pace, the entire construction will be over by September 2014,” said Malla. In the last five years, only 40 percent of the project could be completed due to the tardiness of the contractor and the Nepal Electrical Authority besides repeated protests by the local people. Malla said work had been progressing at a faster pace in the last six months. “All the stakeholders including the workers, local people and project officials are now contributing their best for an early completion of the project,” he added. The project site has also been declared a protest-free zone for the last five months. Project cost to go up due to delays HETAUDA: Due to the delay in construction, the cost of 16-MW Kulekhani-III hydropower project is expected to increase by around Rs 2 billion. The project has projected that the cost would go up by up to 90 percent of original estimated cost of Rs 2.43 billon. Project Chief Madhu Sudan Pratap Malla said delay in work by various stakeholders, including contractors and appreciation of the US dollar, among others, contributed to the rise in cost. Sino Hydro, the contractor, has asked the NEA to provide an additional Rs 1.76 billion. The NEA board is yet to decide on the matter. The project whose construction started in April, 2008 was supposed to start producing electricity by December, 2011. But the deadline has now been extended until September 13, 2014. As of Monday, 66.14 percent of the construction work has been completed.

SAFTA states to cut sensitive lists

SOUTH Asian countries on Tuesday agreed to reduce the number of exportable items on their sensitive lists. They, however, did not agree on what and how many items are to be delisted. Sensitive list is a list of products with every member country which dœs not include tariff concession under the South Asian Free Trade Agreement (SAFTA). The list is adopted to protect vital domestic industries or important sources of customs revenue. However, overuse of such the list can make goods more expensive for consumers and may act as a trade barrier. During the meeting of the Committee of Experts on Reduction of the Sensitive Lists, representatives from the SAFTA member states acknowledged that the lengthy sensitive lists have hindered intra-regional trade to a larger extent and agreed to reduce the list. Jib Raj Koirala, joint secretary at the Ministry of Commerce and Supplies, all the member countries have been asked to submit their revised sensitive lists by the end of January 2014 at the SAARC Secretariat. The meeting also agreed on the modalities that could be adopted while revising the lists. “Countries can have much flexibility while revising the goods on the sensitive lists,” said Koirala, who led Nepal at the meeting. Koirala said modalities including, nature, trend and volume of trade, reciprocal approach and bilateral agreements and margin of preferences, among others, could be followed while reducing the items. “It has been agreed that the lists would be shortened, but without impacting revenue collection of the countries,” Koirala said, adding this will create a win-win situation. Rameshwor Pokharel, under secretary at the ministry, said the member countries could also recommend other alternative modalities to be followed while revising the sensitive lists by the end of August to the SAARC Secretariat. “If a country is not in position to reduce its list, it can continue the existing list, but will have to provide explanation on their inability to reduce the list,” he said. Once the revised lists are forwarded to the SAARC Secretariat, they will be tabled at the meeting of the SAARC Ministerial Council and SAARC Expert Group to be held in Sri Lanka from August 21-23 for endorsement. “The new items under the sensitive lists will only come to implementation once the meeting endorses them,” said Pokharel, who also participated at the meeting.

14 cement factories to get access roads

THE government plans to spend Rs 390 million to build access roads for 14 cement factories under its policy of promoting manufacturing industries. A sum of

Rs 1.23 billion has been earmarked for the construction of access roads and electricity transmission lines and sub-stations for cement factories which are under construction in different parts of the country. Out of the total allotment, Rs 390 million will be spent on building access roads, Rs 360 on connecting the cement factories to power supply and Rs 380 million will be used for the construction of special economic zones. Industry Secretary Krishna Gyanwali said his ministry had recommended the names of 14 cement factories to receive the facility of access road a week ago. He added that once the programme is approved by the National Planning Commission (NPC), the ministry will begin work on the access roads which will connect the mines and manufacturing units. “Only those cement factories which produce clinker by using local limestone will receive the facility,” said Gyanwali. The government plans to complete construction of access roads for five cement factories within the current fiscal year. In fiscal 2008-09, the government announced infrastructural support to cement factories utilizing local raw materials with the objective of promoting mega industries. Under the programme, the government promised to construct roads and drinking water facilities and lay electricity lines to the factory sites stating that it would encourage investors to make use of the country’s huge limestone reserves, thereby saving billions of rupees spent on importing clinker. Gyanwali said that new companies had also applied for access roads. The five cement factories which will benefit from the facility are Ghorahi Cement, Rolpa Cement, United Cement, Shivam Cement and Nigale Cement. Other factories had asked for the facility last year, according to the industry secretary. “The applicants could not receive the promised facility in the last fiscal as the government could not announce a full budget, and so it could not release the necessary budget on time,” he said. Cement producers have long been urging the government to provide basic infrastructure stating that a huge portion of their investment gœs into developing basic facilities. Meanwhile, the private sector has welcomed the government’s preparation to provide the promised infrastructure facility. “Though the government has not fulfilled its promises several times in the past, we are compelled to trust it this time,” said Atmaram Murarka, president of the Cement Manufacturers’ Association asking the ministry to provide the facilities at the earliest. Industrialists said that a number of investors had put their money in cement factories in anticipation of government assistance in building basic infrastructure. “The delay in providing the facility has prompted many investors to give up their plans,” added Murarka. He also asked the ministry to provide electricity and transmission line facilities at the earliest. MoI officials said that once the NPC approves the project to build access roads, it will begin doing home work to provide electricity facility to three factories that have been waiting for it since the last fiscal year. BUDGET ALLOCATION Factory Amount (in millions) Ghorahi Cement Rs 60 Rolpa Cement Rs 50 Sonapur Cement Rs 50 Dang Cement Rs 20 CG Cement Rs 20 United Cement Rs 20 Laxmi Cement Rs 10 Bhardeu Cement Rs 10 Shivam Cement Rs 25 Makalu Cement Rs 25 Nigale Cement Rs 30 Sarbottam Cement Rs 30 Palpa Cement Rs 10 Maruti Cement Rs 30 Total Rs 390 (Source: Ministry of Industry)

Govt blocks import of Red Bull, Red Star

Department of Food Technology and Quality Control (DFTQC) said that it has blocked the import of Red Bull and Red Stars saying that the energy drinks do not come with mandatory information in their labels. Information about manufacture date, expiry date, ingredients are prerequisite to import foreign products in the country and they should be clearly mentioned in labels, the office said. The department, which is also responsible for regulating food quality across the country, said it has doubts about the quality of those drinks. As per the Food Act 1980, any product manufactured in Nepal or imported should include manufacturer´s name and address, manufacture date and expiry date, ingredients used and batch number either in English or Nepali. "We allow entry to foreign products that do not mention required information," said Jiwan Prabha Lama, director general (DG) of DFTQC. DG Lama said that such beverages could affect human health and have high chance of being consumed even after it crosses the expiry date. Earlier this month, the office had imposed ban on the sales and distribution of Red Star and Rhino-S brand of energy drinks citing same reasons. The office said that 2,900 cartons of Red Star energy drink imported by Daju Brothers have been held at Birgunj Customs Office since June 24. Likewise, another 2,900 cartons of energy drinks of the same brand imported by Mangala Impex has been stopped at Kakadvitta Customs Office since June 6. The office has also blocked the import of 2,900 cartons of Red Bull ordered by Adya International at Birgunj Customs Office since June 6. "Each carton contains 24 cans. We have blocked 8,600 cartons of Red Star and Red Bull at Birgunj, Biratnagar and Bhairawa customs offices," Pramod Koirala, spokesperson of DFTQC, said. Koirala also said that the office has been urging public not to drink the energy drinks that do not have mention proper information about its ingredients. Around 25 brands of energy drinks are available in the market. Most of these products come from countries like Singapore, Thailand, Vietnam, England and India.

Carpet exporters risk losing US, European markets

Nepali carpet producers and exporters say they are facing tough time retaining their traditional European and US markets as international buyers are not willing to buy carpets at the increased rates. Nepali carpet producers are preparing to raise price of hand-knotted Nepali carpets due to hefty rise in remuneration of workers. They say cost of production has increased significantly after remuneration of workers was increased in line with the government fixed wage. Though the fresh remuneration hike was enforced in mid-June, carpet entrepreneurs implemented it only from mid-August. Though there have been some improvements in the demands for Nepali carpets from Europe and the US, carpet producers and exporters said they were not in a position to supply carpets at the price agreed earlier with overseas buyers. “Double digit rise in remuneration of workers has jacked up our cost of production forcing us to increase the prices of our products,” Gopal Krishna Joshi, former vice president of Central Carpet Industries Association. “But foreign buyers are not interested to buy our products at the increased rate.” The government increased minimum monthly pay of workers to Rs 8,000, including Rs 2,900 in allowance, and daily wage at Rs 318. Earlier, workers were drawing minimum salary of Rs 6,200 per month and Rs 231 per day. With the fresh hike in remuneration, Joshi said wage per square feet of carpet has gone to Rs 1,600 from Rs 1,200. Four years ago, the wage per square feet was less than Rs 800. Over the past four years, prices of raw material, mainly wool, have increased considerably, according to carpet producers. “We can´t supply carpets without adjusting the price in line with the rising cost of production,” said Joshi. According to entrepreneurs, overall cost of production has increased by more than 40 percent during the four-year period. Average export price of Nepali carpets stand at around Rs 8,500 to Rs 9,000 per square feet. “We are trying to convince the European and US buyers that we were compelled to increase price of carpets due to rising cost of raw material and recent hike in wage of laborers,” added Joshi who is also the proprietor of Joshi Carpet Industries. Nepali carpet entrepreneurs are sending formal letters to the western buyers, informing them the reasons behind rice hike in prices of Nepali carpets. Meanwhile, Nepal´s carpet exports dropped by 13 percent during the first eleven months of 2012/13, compared to figures of the same period last year. According to Trade and Export Promotion Center (TEPC), Nepal exported 586,934 square feet of carpet worth Rs 5.1 billion during the review period. It had exported 662,732 square fee of carpet worth exported Rs 5.86 billion in the same period of 2011/12. Responding to economic slowdown in US and Europe, Nepali exporters had focused on the Chinese market for the last couple of years. They, however, are returning to US and European markets after demand from the conventional market started increasing gradually. “The positive thing is rate of decline in carpet exports has gone down compared to last year. We are hopeful that we can reclaim our buyers in western market which is more lucrative than the Chinese market,” Joshi added. China has been sourcing small-sized carpets from Nepal, while large carpets are popular in European and US market. Producers are interested to supply large carpets which are comparatively less costly compared to the smaller ones.

30 foreign delegates to participate in hydropower meet

Some 30 participants from four sovereign wealth funds and international power developers will congregate in Kathmandu to discuss on the Nepal´s hydropower development on August 28 and 29. The Hydropower Investment Development Company Limited has invited sovereign funds from Canada, UAE, China and Singapore and power developers from China, Australia and India, among others, to take part in Hydropower Investment Meeting. Speaking at a press meet on Tuesday, Chief Executive Officer of HIDCL Deepak Rauniar said that they would put forward projects like Nalsing Gadh (410 MW) and Budhigandaki (600 MW), among others, to the participants, aiming to lure investment. Both are reservoir type projects and hence need a huge investment. The estimated cost of Nalising Gadh is US$ 737.39 million and Budhigandaki is expected to cost $1.50 billion. Rauniar also said that they would discuss on technical, financial and other issues of the projects in a bid to attract foreign investment. According to HIDCL, the meeting is a follow-up activity of the Investors´ Forum of 2011. Ministry of Energy, Ministry of Finance, Investment Board of Nepal and Asian Development Bank are supporting the event. The meeting begins right after the conclusion of a two-day Power Summit being organized by Independent Power Producers´ Association Nepal on August 26 and 27. IPPAN is also participating in the meeting. HIDCL has already invested in Mistri Khola (42 MW) and Dordi Khola (27 MW) hydropower projects through consortiums led by different commercial banks.

Ankhu Khola-1 starts power generation

Ankhu Khola I hydropower project situated in northern part of Dhading district started commercial power generation from Monday. Power generated by the 8.4-megawatt project has been connected to the national grid. The project, situated in Salyankot and Marpak Village Development Committees, has been developed by Ankhu Khola Jalbidhyut Company Limited. According to a press statement issued by the company, the project is currently generating 9.2 MW, 10 percent more than its installed capacity. Construction of the project started in November, 2009. It had started test generation a fortnight ago. The project has also built a 13-km transmission line to link power generated by it to the substation of Nepal Electricity Authority located in Dhadingbeshi, according to Bishwo Nath Kandel, executive director of the project. The project will distribute 2 MW of electricity generate by it to the local consumers. It has a total of 205 shareholders, including 51 from Dhading district. According to the statement, the project also built 7-km access road to the project site. The company plans to develop another hydropower project of 9 MW capacity on the same river.

Prabhu signs remittance pact with Century Bank

Prabhu Money Transfer on Tuesday signed a remittance payment agreement with Century Commercial Bank. Now onwards, money sent from foreign countries through Prabhu Money Transfer can be received from all 31 branches of the bank. Rameshwar Sapkota, general manager of Prabhu Money Transfer, and Ganesh Kumar Shrestha, CEO of Century Commercial Bank, signed the agreement amid a function held in Kathmandu. With this agreement, the remittance payment counters of Prabhu Money Transfer across the country has reached 3,100.

FDI commitments up 163% in 2012/13

Foreign Direct Investment (FDI) commitment amount increased by 163 percent in fiscal year 2012/2013 compared to figures of the previous fiscal year. According to the Department of Industry (Do), a total of 275 joint venture companies were registered with it in 2012/2013. They have committed to make investment of Rs 18.84 billion. New FDI commitments have come from 41 countries, promising to create 13,531 new jobs. FDI commitment in 2011/12 was mere Rs 7.14 billion. A total of 227 joint ventures were registered with the DoI during the period. Data of DoI shows China tops the list of the countries in terms of number of companies with 87 joint ventures, followed by India with 35. In terms of commitment amount, British Virgin Islands tops the list with investment commitment of Rs 4.49 billion, followed by Hong Kong and India with investment commitment of Rs 3.07 billion and Rs 2.45 billion, respectively. Similarly, this is the first time companies from Afghanistan, Argentina and Seychelles have made FDI commitments to Nepal. Spokesperson for DoI Ram Sharan Chimoriya said FDI commitments from China and Hong Kong have increased considerably as the government has prioritized hydropower projects and infrastructure development. Most of the companies from China and Hong Kong are bringing FDI in these sectors. MORE FDI IN SERVICE SECTOR Service sector has received the highest FDI commitment of Rs 7.19 billion, followed by manufacturing and tourism with investment commitment of Rs 4.43 billion and Rs 3.63 billion, respectively. In the previous fiscal year, energy-based industry had received the highest investment commitment with Rs 2.99 billion, followed by service sector with Rs 1.99 billion investment commitment. Pradeep Jung Pandey, vice president of the Federation of Nepalese Chambers of Commerce and Industry, attributed labor problem and acute power shortage behind rise in investment commitment in service sector compared to the manufacturing sector. “Investors prefer sectors like hotel, transport, trading and others where their investment is safe over manufacturing sector,” Pandey said, adding, “The trend shows we are becoming a dependent economy. No wonder, the contribution of industry sector in GDP is decreasing.” Pandey further urged the government to make environment conducive for manufacturing industries. Foreign firms started investing in Nepal after the country embraced liberal economic policy in the 1990s. So far, 2,610 firms from 77 countries have made investment commitment Rs 93.99 billion in Nepal. However, DoI do not have any information about work progress of those joint venture firms. Chimoriya said they monitor industries only upon getting complaints.

Bank deposits down by Rs 16 billion

Deposits at commercial banks fell by Rs 16 billion over the first fortnight of the fiscal year 2013/14. Commercial banks had reported total deposits of Rs 1000.17 billion at the end of the last fiscal year when huge amount of public money flowed into the market due to rapid pace of development works. Now, the development activities have come to a standstill with the beginning of new fiscal year leading to increasing withdrawal of deposits from the banks. “Besides, deposits generally at the end of the fiscal year as banks try to meet annual deposit and lending targets using different measures,” Bhuwan Dahal, deputy CEO of Sanima Bank, told Republica. “After the new fiscal year begins, customers withdraw money as it will take some time for government fund to flow into the public.” Dahal also said bank deposits fell following the allotment of shares under Mega Bank´s Initial Public Offering (IPO). Shares of Mega Bank were oversubscribed by 15 times to Rs 10 billion which was parked for a few weeks in the banks. Similarly, loan investment of banks over the period dropped by Rs 7 billion to Rs 747 billion. A banker said customers have not put fresh demand for loan, hoping that interest rate on credit will come down as the new monetary policy that have made it mandatory for banks to maintain 5 percent spread rate -- difference between interest rate on lending and deposit -- and reduced Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). “We are hopeful that loan investment will increase once the interest rate comes down,” the banker said. Some banks have already started to offer lower interest rates, while some have indicated that they are lowering interest rates by 1 to 2 percentage points. Meanwhile, deposits at commercial banks increased by Rs 145 billion, including Rs 75 billion in the last month alone, in 2012/13 compared to 2011/12. The government released the payment for construction works toward the end of the fiscal year which ultimately resulted in the increasing deposits at commercial banks.

Best Brand Award nominees announced

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has announced the nominees for Best Brand Award -- 2013 to be held for the first time in Nepal on August 19. The apex body of Nepali private sector is presenting the award in two categories -- best Nepali company and best multinational company. According to FNCCI, the brands nominated in Nepali company categories are - Chocofun, Jagadamba Steels, Pashupati Paints, Tokla Tea and Wai-Wai noodles. Similarly, Coca-Cola, Fair & Lovely, Asian Paints, Ncell and Standard Chartered Bank are the nominees in the multinational company category. The Best Brand Award -- 2013 is a part of FNCCI´s National Excellence Award. The FNCCI has been honoring business organizations with the National Excellence Award since 2001 with the aim of promoting quality goods and services. “Based on the fixed set of criteria and performance indicators, we have shortlisted these 10 nominees (five from each category) from among 30 companies through multiple and scientific parameters,” Saurav Jyoti, chairman of the FNCCI´s productivity and quality committee, said. Jyoti added that the award would inspire organizations to make their products competitive by enhancing their quality.According to Jyoti, the awards are being organized in order to promote quality goods and services among companies in operation in Nepal. “The main aim of the award is to encourage business organizations to improve the quality of their management and deliver customer service excellence,” said Jyoti. The FNCCI has informed that winners of the award will be announced on the basis of SMS voting and through likes on Facebook page of FNCCI National Excellence Awards 2070. Users can like/SMS only one brand. The voting for the event started from July 21 and ends on August 8.

DOMESTIC WINES COME INTO THEIR OWN

WITH the wine drinking culture flourishing like never before, demand for domestic brands too has soared. Traders said that Nepal-made wines, which were in search of an identity until a few years ago, now command a market share of more than 50 percent. And penetration is increasing day by day, they added. The rate of growth in Nepal’s wine business can be gauged by the fact that there are now around eight factories manufacturing wines. Domestic wine brands like Divine, Hinwa, Grapple, Nettlange, Royal Gate, Nessi and Dada Ghare, among others, are the best selling products in the local market. Until two-three years ago, there were just three wine makers in the country. “The culture of consuming wine has increased in Nepal. And Nepali manufacturers have benefited from this,” said Ram Thapa, proprietor of Sankata Wines, a supplier of Nepali wine brands like Hinwa, Grapple and Nettlange. “When we entered the business some eight years ago, the scenario was totally different. It was difficult for us to sell even a single bottle daily. But the situation has changed now, and the business has really taken off.” According to Thapa, exceptional quality at affordable prices have played a key role in the expansion of locally made wines. “The Nepali people have already accepted the taste of domestically manufactured wines. Now, they are confident about the quality aspect as well. And this has given a boost to the market,” he said. Another key factor contributing to the growth in sales is price, he added. While imported products cost around Rs 450 at the lowest, those manufactured here are available in the range of Rs 350 to Rs 400. Similarly, a spreading party culture and characterization of wine as a social drink has helped the market to flourish. Traders said that wines had become an integral part of social gatherings and parties. “Wine is considered as a social drink. Also, it has health benefits. This has also drawn people towards wine,” Thapa said. According to Babu Ram Thapa, proprietor of Thapa Wine Suppliers, the authorised distributor of Divine wines, the company sells around 10,800 l (1,000 to 1,2000 cartons) of Divine wine in the Kathmandu valley monthly. “The country’s monthly requirement amounts to 4,000 cartons,” said Thapa. The domestic market has a huge preference for sweet wines, he added. “Among our customers, 70 percent buy sweet wines.” As per Thapa, sales of domestically manufactured wines have been on a growth trend since the past three years, and the momentum continues. Even some of the premium stores in the city are witnessing an improvement in sales of Nepali wines. “Since the quality of Nepali wines is very good, people who used to consume imported products are now going for them,” he said. Traders said that locally manufactured wines have a huge market potential, and could dominate the domestic market within a couple of years. They predict that the market penetration of Nepali wines is likely to increase to around 60-70 percent within a year if the current trend persists. Thapa of Thapa Wine Suppliers said that domestic manufacturers hadn’t been able to tap the market outside Kathmandu due to their small production capacity. “The market outside Kathmandu is growing fast, and people are accepting the taste of wine. Nepali wines are priced well and can attract greater sales in other major cities of the country,” he said. There is great demand for wines in Pokhara, Biratnagar, Dharan, Butwal, Nepalgunj and Itahari, among other cities, he added.

DOMESTIC WINES COME INTO THEIR OWN

WITH the wine drinking culture flourishing like never before, demand for domestic brands too has soared. Traders said that Nepal-made wines, which were in search of an identity until a few years ago, now command a market share of more than 50 percent. And penetration is increasing day by day, they added. The rate of growth in Nepal’s wine business can be gauged by the fact that there are now around eight factories manufacturing wines. Domestic wine brands like Divine, Hinwa, Grapple, Nettlange, Royal Gate, Nessi and Dada Ghare, among others, are the best selling products in the local market. Until two-three years ago, there were just three wine makers in the country. “The culture of consuming wine has increased in Nepal. And Nepali manufacturers have benefited from this,” said Ram Thapa, proprietor of Sankata Wines, a supplier of Nepali wine brands like Hinwa, Grapple and Nettlange. “When we entered the business some eight years ago, the scenario was totally different. It was difficult for us to sell even a single bottle daily. But the situation has changed now, and the business has really taken off.” According to Thapa, exceptional quality at affordable prices have played a key role in the expansion of locally made wines. “The Nepali people have already accepted the taste of domestically manufactured wines. Now, they are confident about the quality aspect as well. And this has given a boost to the market,” he said. Another key factor contributing to the growth in sales is price, he added. While imported products cost around Rs 450 at the lowest, those manufactured here are available in the range of Rs 350 to Rs 400. Similarly, a spreading party culture and characterization of wine as a social drink has helped the market to flourish. Traders said that wines had become an integral part of social gatherings and parties. “Wine is considered as a social drink. Also, it has health benefits. This has also drawn people towards wine,” Thapa said. According to Babu Ram Thapa, proprietor of Thapa Wine Suppliers, the authorised distributor of Divine wines, the company sells around 10,800 l (1,000 to 1,2000 cartons) of Divine wine in the Kathmandu valley monthly. “The country’s monthly requirement amounts to 4,000 cartons,” said Thapa. The domestic market has a huge preference for sweet wines, he added. “Among our customers, 70 percent buy sweet wines.” As per Thapa, sales of domestically manufactured wines have been on a growth trend since the past three years, and the momentum continues. Even some of the premium stores in the city are witnessing an improvement in sales of Nepali wines. “Since the quality of Nepali wines is very good, people who used to consume imported products are now going for them,” he said. Traders said that locally manufactured wines have a huge market potential, and could dominate the domestic market within a couple of years. They predict that the market penetration of Nepali wines is likely to increase to around 60-70 percent within a year if the current trend persists. Thapa of Thapa Wine Suppliers said that domestic manufacturers hadn’t been able to tap the market outside Kathmandu due to their small production capacity. “The market outside Kathmandu is growing fast, and people are accepting the taste of wine. Nepali wines are priced well and can attract greater sales in other major cities of the country,” he said. There is great demand for wines in Pokhara, Biratnagar, Dharan, Butwal, Nepalgunj and Itahari, among other cities, he added.

Business community says no to donation

Business community on Sunday unveiled ´Business Code of Conduct Concepts´ and declared that they would not give donations to any political parties and persons with the intention of gain. "We will not give any kind of donations, presents, services or facilities to any political person or party with an intention of gain in the coming days," reads the business code of conduct that Chief of Interim Election Council Khila Raj Regmi unveiled on Sunday. The business code of conduct has set ethics in six different areas such as consumer protection, tax and financial accountability, labor, environment, anti-corruption, and competition and market protection. “The code of conduct has been prepared to pave the future path for good practices for business community," Padma Jyoti, president of Nepal Business Institute (NBI) said. The NBI prepared the business code of conduct after holding consultations with members of the business community.The code of conduct explicitly focuses on donations and gifts at a time when business people are lobbying for developing a system where they can include donations given to political parties in their account. "We uphold the principle that we must not give bribe, gifts and donations directly or indirectly for our business and financial advantage," states the code of conduct concept paper. "If any situation is created where we are forced to conduct such acts, we will lodge complaints with the concerned agencies." Unveiling the code of conduct, Regmi assured business community that the government would provide all necessary help to implement the business ethics. "The most important thing at the moment is creating industrial-friendly environment in the country," Regmi said. "The government is ready to help the business community to implement the code of conduct. I also expect the business community to stick to the ethics it has set for itself." Bhaskar Raj Rajkarnikar, vice president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said the entire business community is ready to follow the code of conduct for fair and good practices in the business sector. Similarly, the code of conduct also states that the business community would not support monopoly and unhealthy business practices. "We will be mindful of ´the sovereignty of consumers´, " reads the code of conduct. The business community has also expressed commitment for paying taxes on time, respecting consumers´ right, protecting environment, and abiding by the law of the land to ensure competition in the market, among others.

Furnex Nepal 2013 from Sep 25

Nepal Furniture and Furnishing Association (NFFA) together with Shaan Furniture is organizing Furnex Nepal 2013 from September 25 to 29. The association is organizing the expo keeping in mind the increasing demand for furniture and furnishing products for homes and offices. According to a statement of NFFA, the expo will showcase domestic designs of different furniture and furnishing houses along with designs from China, Thailand, India, Malaysia, Turkey, Germany and USA. The expo will have a total of 55 stalls. The organizers are also holding different interaction programs and sidelines at the sidelines of the event. The organizers are expecting about 150,000 visitors in the five-day event.

Imports by telecom companies soar due to expansion drive

IMPORTS of telecommunication equipment nearly doubled in the last fiscal year with telecom companies going on an expansion and upgrading spree. The Nepal

Telecommunications Authority (NTA) said these companies procured products worth Rs 8.54 billion in 2012-13. In fiscal 2011-12, imports of telecom products amounted to Rs 4.55 billion. As per the Telecommunication Act 1997, telecom operators have to get a recommendation from the NTA to import any kind of telecommunication equipment. The imported products include structures for transceiver stations, power equipment, mobile switching centres and base station equipment for maintenance, expansion and upgrading work, according to the NTA. Imports soared due to increased purchases by the big two - Nepal Telecom (NT) and Ncell. NTA officials said NT has been working on its mega project which aims to add 10 million GSM lines, while Ncell is working on capacity increment from 2G to 3G service network besides increasing service areas. During the last fiscal year, NT bought equipment worth Rs 5.18 billion, up 60 percent from the previous year’s Rs 3.23 billion, the NTA said. Ncell imported equipment worth Rs 2.44 billion, while Nepal Satellite Telecom procured stuff worth Rs 590 million. United Telecom Limited (UTL) and Smart Telecom bought equipment valued at Rs 200 million and Rs 110 million, respectively. “NT had sought a recommendation for the import of equipment from Huawei Technologies,” said Dipesh Acharya, NTA’s deputy director. China’s Huawei been awarded the contract for the 10 million GSM mobile lines project. NT said that they would be able to distribute new SIM cards under the mega project after one month in Kathmandu after completing the network preparation work. “We are installing new equipment at mobile towers in Kathmandu and the task will be finished in a month,” said Guna Keshari Pradhan, spokesperson for NT. Of the six telecom companies, only STM Telecom Sanchar, which is now known as CG Communications, did not buy equipment from foreign vendors. Besides, two satellite phone service providers, Constellation and I4 Technologies, also imported equipment worth Rs 6.7 million and Rs 600,000 respectively, said the NTA. OPERATORS IMPORTS Nepal Telecom Rs 5.18 billion Ncell Rs 2.44 billion Nepal Satellite Telecom Rs 590 million United Telecom Limited Rs 200 million Smart Telecom Rs 110 million

Bœing asks for beacon checks on up to 1,200 jets

BŒING has asked airlines to inspect up to 1,200 aircraft across its fleet to gather data on Honeywell emergency beacons that have come under scrutiny following a fire on a parked 787 Dreamliner two weeks ago. The blaze caused serious damage to the jet owned by Ethiopian Airlines at London’s Heathrow on July 12. Between 1,100 and 1,200 Bœing aircraft of all sizes have been fitted with the beacons, but Bœing is asking that airlines inspect as many as possible and report back within 10 days to help regulators decide what action to take, if any. “Bœing is asking specific operators of 717, Next- Generation 737, 747-400, 767 and 777s to inspect aircraft with the Honeywell fixed emergency locator transmitters,” a Bœing spokesman said in an emailed statement late on Sunday. “The purpose of these inspections is to gather data to support potential rule-making by regulators.” British accident investigators traced the fire to the area housing one of the units and recommended worldwide inspections of all lithium battery-powered emergency locator transmitters. The US Federal Aviation Administration instructed airlines on Thursday to remove or inspect Honeywell fixed emergency beacons in the model which caught fire, the 787, but has not so far widened its mandatory checks to other models. The beacons in question are designed to help rescue workers locate aircraft in the event of a crash. They are installed on approximately 20 types of aircraft, including many Bœing and Airbus passenger jets and several types of business aircraft. “Bœing’s recommendation of fleet-wide checks of the Emergency Locator Transmitters (ELT) suggests that Bœing thinks it is not a 787 problem, but an ELT problem,” said Paul Hayes, director of safety at UK-based aviation consultancy Ascend. The July 12 fire reawakened concern in the industry about Bœing’s advanced carbon-composite Dreamliner, which was grounded for more three months this year after two incidents involving overheated lithium-ion batteries. The UK’s Air Accidents Investigation Branch (AAIB) said the London fire was not related to those batteries. Airbus said it would carry out a review of the way the emergency beacons are installed onboard its planes, but stopped short of asking airlines to inspect them across its fleet. “Our records do not show any incidents of this nature,” a spokesman for the European planemaker said. “However, as a precautionary measure, we will do an additional review of the integration of the device in order to determine whether there is a need to apply any lessons from the AAIB findings,” the spokesman said. The fire on the Ethiopian-owned jet broke out after it had been parked for eight hours at a remote airport stand. It caused extensive damage in the rear of the plane and scorched the top of the outer skin of the fuselage. Japan’s ANA Holdings Inc, which operates the world’s biggest fleet of Dreamliners, said last week it found damage to the battery wiring on two 787 beacons during checks. Damage was slight, but the beacons have been sent to Honeywell for inspection, ANA said. Qatar Airways meanwhile denied that one of its Dreamliners had caught fire after industry sources said smoke had been reported near an electrical panel, while the plane was on the ground in Doha. The aircraft has not flown since July 21, according to web tracking data, an unusually long downtime for an active jet. “I can unequivocally say that there was no fire. It was just a minor issue, not even an incident. We’re working with Bœing to get it fixed very soon,” an airline spokeswoman said. Between 1,100 and 1,200 Bœing aircraft have been fitted with the beacons, but Bœing is asking that airlines inspect as many as possible and report back within 10 days

India panel clears Jet-Etihad deal

INDIA’S foreign investment panel Monday approved a plan for Abu Dhabi-based Etihad to buy a stake in Indian airline Jet, but the pact still faces other hurdles. “It (the agreement) has been cleared” by the Foreign Investment Promotion Board (FIPB), a senior finance ministry official said. “But there are conditions,” the official, who asked not to be named, said. He said he could not immediately disclose the riders attached to the FIPB’s approval of the $349 million deal. The agreement is now expected to go to the Cabinet Committee on Economic Affairs chaired by Prime Minister Manmohan Singh, and the deal could still need other approvals. The deal is regarded as a key test of India’s ability to attract outside investors to its ailing airline sector, after it began easing foreign investment curbs in sectors from aviation to retail last September. Jet Airways and Etihad Airways officials were not immediately available for comment. Jet said in April it planned to sell a 24 percent stake to Etihad, but the deal stirred wide political controversy in India amid questions about which country would control the Indian airline. Several Indian ministries objected to the agreement—the largest foreign investment proposal in India’s aviation sector— over what it could mean for control of Jet. The deal is regarded as a key test of India’s ability to attract outside investors to its ailing airline sector

BFIs allowed to raise lending to deprived sectors in stages

KATHMANDU, JULY 29 BANKS and financial institutions (BFIs) will be able to maintain an increased level of compulsory lending to deprived sectors in two instalments. The central bank has told them that they can increase their lending by 0.25 percent by mid-January and by another 0.25 percent by mid- July 2014. Nepal Rastra Bank (NRB) increased the compulsory lending by 0.5 percentage point for commercial banks, development banks and finance companies through the monetary policy for the current fiscal year. As per the new policy, at least 4.5 percent of the total loans issued by commercial banks must go to deprived sectors. The figures for development banks and finance companies are 4 percent and 3.5 percent respectively. NRB has issued directives to implement the monetary policy that also deal with refinancing, cash reserve ratio and statutory liquidity ratio. The refinancing rate has been cut by 1 percent for ordinary refinancing while it is 0.5 percent for special refinancing. Under normal refinancing, productive sectors such as hydropower, agriculture, fishery, manufacturing, tourism and physical infrastructure will get refinancing at 5 percent from the central bank which BFIs should provide to these sectors at not more than 9 percent. The refinancing rate for exports and special refinancing such as for sick industries, small and women promoted enterprises, Dalits and indigenous communities has been fixed at 1 percent which BFIs have to re-lend at not more than 4.5 percent interest. Even though the definition and identification of sick industries hasn’t been completed, NRB has been collecting suggestions for providing added facilities to them. “The rates have been reduced to encourage both the banks and their customers,” said Bhaskar Mani Gnawali, NRB spokesperson. “The move is aimed at increasing the use of the refinancing facility.” The central bank has slashed the special refinancing rates for the first time in two years while this is the second reduction for ordinary refinancing. According to NRB, refinancing facility worth Rs 2.47 billion was offered to the productive sector in the fiscal year 2012-13. The facility provided in fiscal 2011-12 was worth Rs 868.6 million. The central bank has told the BFIs they can increase their lending by 0.25 percent by mid-January and by another 0.25 percent by mid-July 2014

Government slammed for being soft against dishonest traders

CONSUMER rights activists on Monday criticized the government for failing to move against sellers of substandard products. The authorities have not been able to take action against them even after being caught by market monitoring teams, they said. The rights groups have also asked the government to crack down on cartels as they had been creating an artificial price rise in the market. The Department of Commerce and Supply (DoCS), Department of Food Technology and Quality Control (DFTQC) and Nepal Bureau of Standard and Metrology (NBSM) have increased the frequency of market inspection of late. However, hardly any of the traders caught selling inferior products have faced legal action. In fact, the merchants involved in malpractices have organised protests under the banner of their associations to pressure the government against pursuing further action. The government has agreed not to take action against the wrongdœrs. “The government should introduce a provision to ensure action against wrongdœrs without delay,” said Jagannath Mishra, president of the Consumers’ Welfare Protection Forum (CWPF). “The government seems to have carried out monitoring just for cheap publicity,” said Mishra. The extent of government inaction against unscrupulous traders is shown by the records of the DoCS. It reported that it checked over 2,100 samples of goods from across the country in 2012-13. And despite the large number of substandard products found, cases were filed against only seven sellers. Gold traders who were found selling substandard gold during the inspection by DoCS were let off. When it was making preparations to pursue legal action, the bullion traders closed their shops for several days in protest. Similarly, of the 15 dairies that were found selling milk contaminated with harmful coli form bacteria faced no legal action as mentioned in the law. The DFTQC failed to take stern action against any of them although it sealed a few dairies for a few days. They were allowed to resume operations without having taken convincing measures to improve the quality of their products. Meanwhile, government agencies said that their hands were tied due to lack of laws and shortage of manpower. The DFTQC’s spokesperson Pramod Koirala said lack of transparency in reporting, shortage of skilled manpower and lack of coordination among government bodies were the main challenges of the sector. NBSM Director General Ram Aadhar Sah said his office was working to develop a mechanism to bring government staffers blamed for taking undue advantage during market inspection under the law. “We will also initiate market inspection outside the Kathmandu valley,” he added. Pabitra Bajracharya, president of the Nepal Retailers’ Association, said the government should focus on monitoring the source like production plants and customs points to minimize sales of substandard goods. “Big traders are always excused while small ones have to suffer legal action for the same offence,” he said. Gopal Dahal, central committee member of the CWPF, blamed the government for not moving forward to control market prices. “Besides effectively implementing the provisions in the law, the government is reluctant to control prices,” he said. “The government’s policy that a free market automatically adjusts prices has led to suffering for consumers.” Meanwhile, Surendra Bir Malakar, former president of the Nepal Chamber of Commerce, said that the government should also focus on smuggling of imported goods through the open border with India. He urged the government to induct experts into its inspection team to make market monitoring more effective. The government seems to have carried out monitoring just for cheap publicity

Govt discontinues three ‘populist programmes’

THE government has discontinued three “populist programmes” this fiscal year, and has used the budget—which would have gone to those programmes—in increasing grants for local bodies and other activities such as roads, bridges and social security. The discontinued programmes are People’s Participation Programme, Electoral Constituency Development Programme and Terai- Madhes and Karnali Vicinity Programme. Ministry of Federal Affairs and Local Development Spokesperson Dinesh Thapaliya said Rs 1.3 billion has been diverted to other programmes. The biggest chunk of the amount has gone for increasing grants for local bodies, he said. The government has increased the upper limit of the grant for village development committees to Rs 4.6 million from Rs 3 million. The grant for municipalities and district development committees has also been increased, according to the ministry. The government had allocated Rs 500 million for People’s Participation Programmes, Rs 600 million for Electoral Constituency Development Programme and Rs 200 million for Terai-Madhes and Karnali Vicinity for fiscal year 201-12. Under the Electoral Constituency Development Programme, the budget was meant to be used for development activities of constituencies. Development of local roads, drinking water facilities and other activities were to be carried out under the People’s Participation Programmes at the local level through consumer committees. Similar activities were to be carried out to improve livelihood of the people of Karnali region and its vicinity as well as backward region of Terai under the Terai Madhes and Karnali Vicinity Programme. “All these programmes were of populist and politically-motivated nature,” said Thapaliya. “These were imposed directly by the centre with little participation of the locals.” The government discontinued these programmes following mounting pressure for not introducing a populist budget at a time when the Constituent Assembly elections have been scheduled for November 19. Officials at the local development ministry are happy with the transfer of the budget to increase grants for local governments. “These populist programmes were introduced against the decentralisation policy of the country,” said Thapaliya. “The grants to be provided to local bodies are used for locallydetermined projects.”

SAFTA members to talk reduction in sensitive lists, tariffs

SOUTH Asian countries will hold discussions on reducing the sensitive lists and tariffs to effectively implement the South Asian Free Trade Agreement (SAFTA) during a meeting scheduled to be held in Kathmandu from Tuesday. The Committee of Experts on Reduction of the Sensitive Lists and the Committee of Experts on Non-tariff Measures and Para Tariff Measures (NTM and PTM) under the SAFTA will discuss the matters during the threeday meeting, according to officials at the Ministry of Commerce and Supplies. The Committee of Experts on Reduction of the Sensitive Lists will meet on Monday to review the progress made in the implementation of the revised sensitive lists devised after the second meeting of the expert group held on January 1, 2012. The sensitive list includes products and services on which the tariffs have not been brought down. The meeting of the Committee of Experts on NTM and PTM will be held on Wednesday and Thursday, which will discuss on reducing tariffs to zero gradually within 2013, said the ministry officials. Both are the joint secretary- level committees. Nepal has maintained a sensitive list of 998 goods for least developed countries (LDCs) and 1,036 goods for non-LDCs. India has included 25 items for LDCs and 614 for non-LDCs, while Sri Lanka has 845 items for LDCs and 906 items for non-LDCs. Bangladesh’s list include 987 products for LDCs and 993 for non-LDCs. Afghanistan, Bhutan and Maldives have 858, 156 and 154 items, respectively, on their sensitive lists. These three countries have not prepared separate sensitive lists for LDCs and non-LDCs. A high-level ministry official said Nepal has reduced the number of goods on its sensitive lists following the decision of the expert committee’s second meeting. The budget for this fiscal year has also announced adopting new provisions for the implementation of the agreement. “Given the size, volume and pattern of the trade, Nepal is not in position to further reduce the goods under its sensitive lists,” he said, adding the sensitive lists maintained by India have been the major hindrance to increasing Nepal’s export to its southern neighbor, the biggest trading partner. He, however, said Nepali representatives would ask member countries to reduce the number of goods on their sensitive lists during the meeting. Trade expert Ratnakar Adhikary said such a large number of items on the sensitive lists have remained as one of the greatest hurdles to intraregional trade. He said although nothing has been mentioned clearly, there has been a general understanding to reduce the number of products under the sensitive lists by 2016. “It has been mutually understood that the products under the sensitive lists should not be more than 5 percent of the total tariff line,” Adhikary said. During the meeting of the Expert Committee on NTM and PTM, Nepal will request India to set up “mirror labs” in both the countries. “The basic concept of setting up the lab is once a product is tasted in such a lab in Nepal and are proved to be genuine; it should not be again tested in India and vice versa,” said a ministry source. He said as SAFTA aims to bring down all the tariffs to zero within 2013, much of the attention should be given to checking NTM and PTM. The last meeting of the Committee of Experts on NTM and PTM was held in 2007. Although another Expert Group on Trade in Services was also scheduled to meet, it could not be held after no other member countries submitted their revised lists of service items to be traded within and beyond the region.

TIA receives ten brand new pre-paid taxis

Problems faced by passengers at Tribhuwan International Airport (TIA) seems to have been partially addressed as ten brand new pre-paid taxis have started plying from the country's only international airport. The Air Passenger Transportation Service Management had previously announced to introduce one hundred new taxis by July 1, but due to delay in receiving green license plates the company started the operation with only ten new taxis from July 25. “We had only ten new taxis with green license plates therefore without much delay we started their operation from Thursday,“ said chairman of the company Purosottam Simkhada. “Now we will introduce additional 50 new pre-paid taxis soon as they receive green license plates from the Department of Transportation.“ On July 25, the company unofficially started operation of ten taxis out of which three taxis were for passengers at domestic airport and the remaining for passengers at the international terminal. “We will formally inaugurate the service once 50 more pre-paid taxis start their operation,“ Simkhada said. The company will also manage the parking area for newly launched prepaid taxis. “We will oversee the overall management of the proposed taxi parking area which will have a capacity to house minimum 300 taxis,” Simkhada said. The company has signed an agreement of seven years to look after the operation of the pre-paid taxis and the taxi parking area. TIA will receive around Rs 21.5 million for operation and management of the taxi area from the company. According to the company, it is making an investment of around Rs 400 million to introduce new taxis in the TIA and is preparing to secure a loan of around Rs 320 million for purchase of 60 vehicles from Nepal Investment Bank. The company will also acquire loans from Machhapuchchhre Bank to purchase 50 vehicles and Global IME Bank to purchase additional 85 vehicles. “We will gradually increase the number of taxis to 200 in the first phase and add another 100 taxis after conducting a study,” Simkhada said. According to Tribhuwan International Airport office, around 170 old taxis are currently operating in the airport.  

Central bank enforces new CRR, SLR provisions

Banks and financial institutions in the country now have more funds to invest or extend as credit, as the changes in Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) introduced through the latest Monetary Policy came into effect from today. The latest monetary policy introduced by Nepal Rastra Bank (NRB) had slashed CRR to five per cent for commercial banks, 4.5 per cent for development banks and four per cent for finance companies to promote lending. Likewise, SLR has been reduced to 12 per cent for commercial banks, nine per cent for development banks and eight per cent for finance companies. Class ‘B’ and ‘C’ financial institutions that do not collect call deposits have to maintain SLR of six per cent. CRR refers to the portion of total deposits that financial institutions have to keep at central bank as deposit. SLR is the portion of total deposits that financial institutions have to maintain as liquid assets such as cash, government securities and precious metals. Reduction in SLR and CRR has freed some funds of banks and financial institutions for lending and investment. As for deprived sector lending, financial institutions can increase their exposure by 0.25 percentage point within mid-January 2014 and another 0.25 percentage point by the end of the current fiscal year to meet the central bank’s requirement, says an NRB circular issued on Sunday. The monetary policy has made it mandatory for commercial banks to extend amount equivalent to at least 4.5 per cent of total loans to the deprived sector. The ratio for development banks and finance companies stands at four per cent and 3.5 per cent, respectively. The same circular also extended the period for reverse repo and repo auctions to 21 days from existing 28 days. Moreover, it has also imposed new refinancing rate for priority sectors. Ordinary refinancing rate for productive sector loans such as hydro, agro, infrastructure and productive sector is fixed at five per cent for which banks can charge up to nine per cent interest. The rate for export refinancing has also been fixed at one per cent and financial institutions can charge up to 4.5 per cent. Likewise, NRB has fixed special refinancing rate for sick industries and SMEs, among others, at 1.5 per cent and has allowed banks to extend such loans at 4.5 per cent interest.  

NT to add 2.91m phone lines this year

Nepal Telecom (NT) will add about 2.91 million telephone lines in the current fiscal year. NT is planning to add two million mobile phone lines, said spokesperson of the state-owned company Gun Keshari Pradahn while announcing programmes for the year. “We are upgrading GSM service across the country by installing new BTSs and expanding 3G services,” she said. The company has a customer base of 8.94 million people, mostly in GSM service. Similarly, NT is adding 886,000 CDMA telephone lines in the fiscal year 201314 and is expanding the service throughout 75 districts. This expansion will help NT to extend data services in remote places, she said. The state-owned entity is also adding 27,401 PSTN lines, popularly known as land lines. NT is also opening Customer Contact Center to address problems faced by customers. The state enterprise will also build 500 WiMAX Hotspots across the country. Such Hotspots will be established in crowded areas like major commercial hubs, colleges and bus terminals. The corporation posted an operating profit Rs 37.60 billion in the fiscal year 2012-13 and has projected to earn a profit of Rs 41.65 billion in the current fiscal year. Similarly, it has projected to post net profit of Rs 11.96 billion in the current fiscal as against Rs 10.59 billion of last fiscal.  

FNCCI lobbies for common economic strategy

Nepal’s private sector umbrella organisation has reiterated its demand for common minimum economic growth strategy from all political parties to ensure country’s prosperity. “We want political parties to prepare a common economic strategy in association with the private sector to ensure Nepal’s prosperity,” pointed out president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Suraj Vaidya, during an interaction held here today to discuss economic agendas that should be included in Nepali Congress party’s election manifesto meant for November 19 election. The industrialists and entrepreneurs present during the interaction, including FNCCI’s executive body, stressed that there was no alternative to providing mass employment opportunities citing it as a prerequisite for development.“Every year more than half of youths who enter the labour market go away to other countries due to absence of proper employment opportunities in homeland,” said Vaidya, pointing to absence of supporting environment for industrialisation and problems of energy crisis and security. “We want Nepali Congress to promise that if it wins it will ensure that businesses will be able to run smoothly without any threat,” he said. Nepali Congress leaders assured that their party supports capitalism and has been fighting for the rights to property and economic liberalisation. “Our party, since the very beginning, has supported the idea that country cannot be run properly without economic growth and prosperity,” said president of Nepali Congress, Sushil Koirala. Former finance minister and Nepali Congress leader Dr Ram Sharan Mahat pointed out that even hard-core socialist parties are towing the Nepali Congress initiated economic agendas –voluntary or not. “Other parties such as Maoists have also realised that capitalist ideals that we promote are necessary for social redistribution that they support,” pointed out Dr Mahat. He stressed that Nepali Congress policies introduced in early 1990s is responsible for current growth seen in banking, media, health and education sectors. However, he cautioned that Nepal is moving towards deindustrialisation as more industrialists are moving towards less labour-intensive service sectors due to difficulties posed by trade unions. Other leaders of Nepali Congress stressed that their party has never pressurised the private sector for donations. Entrepreneurs present during the interaction urged the party to recognise issues such as employment generation, energy production, security and agriculture promotion as main economic agendas in Nepali Congress’ manifesto.  

Alpine Air, Net Airways sign pact

KATHMANDU: Nepal-based Alpine Air and UKbased Net Airways have signed an agreement to operate international flights from Nepal. Surendra Malla, chairman of Alpine Air and Bikram Joshi, founding director of Net Airways, on Sunday signed the agreement. Net Airways is a London-based company, incorporated with investments from British Nationals of mainly Nepalese origin and Non-Resident Nepalese living in the UK. Alpine Air will have a paid-up Capital of approximately Rs 550 million initially and the same will be gradually raised to Rs 1 billion in the near future. Alpine Air has announced its plan to begin its operation with an Airbus A320-200 aircraft and add a second aircraft within three months of operation.

Pepsi names prize winners

KATHMANDU: Crown number 336244T, 408945D, 838211Y, 399954N, 347008K, 720295H and 134566L have been declared the seventh week’s winners of a cash prize of Rs 100,000 each in Pepsi’s ongoing campaign Pepsi 20-20 — Win 20 lakhs in just Rs 20. Meanwhile, the company presented Rs 100,000 each to the fifth week’s winners Bal Ram Adhikari Chettri of Lalitpur, Bijaya Kumar Tanlami of Surkhet, Umesh Shrestha of Patan, Tulsa Koirala of Balaju, Ravi Karki of Mahottari, Kushal Thapa Magar of New Baneshwor and Roshan Karki of Chabahil. The Pepsi 20-20 is an under-the-crown promotion running on the 250 ml Pepsi, Mirinda, 7Up and Mountain Dew glass bottles with a red ringed Crown. Each crown has a 7-digit alphanumeric “unique code” printed on it. Consumers can participate by sending the unique code to 7722.

Tuborg to show loudest concert

KATHMANDU: Continuing the spirit of music and fun, TUBORG Stage has come up with Tuborg Stage - Let’s Get Loud! which it claims will be the country’s loudest concert. Aimed at delivering music to all, the nationwide concert, according to the company, will bring music lovers, famous Nepali artists and bands together under one big celebration of music. According to the company, the musical event will continue for two months and reach the masses in phases. In the first phase, Tuborg Musical Trucks will travel to nearby cities and various districts where local artists and a few national artists will perform. In the following phases, Tuborg Buses will travel to various nearby towns where concerts will be held to give continuity to the musical celebration, engage with the event and deliver the fun feel of the upcoming Let’s Get Loud concert. The third phase will be a grand concert where popular Nepali artists like 1974 AD, Mukti _ Revival, Robin _ the New Revolution, Abhaya _ the Steam Injuns, Sabin Rai _ Elektrix, Nima Rumba _ The Legend Band and The Shadows will perform live across six cities, namely Nepalgunj, Butwal, Narayanghat, Dharan, Pokhara and Kathmandu.

CONTINENTAL ROLLS OUT ALL-NEW KIA RIO

CONTINENTAL Associates, a subsidiary of the Continental Group and the sole authorised distributor of Korean auto maker Kia in Nepal, rolled out the all-new Kia Rio on Sunday. The car is available in hatchback and sedan options. According to the company, the Rio comes in three variants, each available in

hatchback and sedan models. The new Rio has no resemblance to its predecessor, and boasts a sporty and elegant look, said Continental Associates. Addressing the launching ceremony, president of Continental Group Suhrid Ghimire said that Kia has given the new machines a European look with minute attention to design details and with its trademark characteristics both on the outside and the inside. “We have been selling Kia vehicles in Nepal for the past two decades, and there are around 6,000 Kia vehicles on Nepal’s streets. With these new variants, we aim to take our stakes here one notch higher,” said Ghimire. The new Kia vehicle has been fitted with four bulb MFR type projection lamps, Kia’s signature twin tab grille, big and wide front bumper, projection type fog lamps, prominent rear combination lamps, 15-in alloy wheels, sunroof in automatic transm i s s i o• variants and an aerodynamic body. As for the interior, it features leather upholstery, aesthetic seats, air conditioning, Bluetooth, audio control system and factory fitted music system with branded surround sound system. Kia has powered the Rio with a 1.4 l Gamma Engine which delivers 107 ps of power at 6,300 rpm and 13.8 kg torque at 4,200 rpm. The car comes with a six-speed manual transmission system or four-speed automatic transmission system. The Gamma engine, according to the company, has MPI (Multi-Point Fuel Injection) technology and has been built with light weight die-cast aluminium which maximizes fuel efficiency and reduces carbon dioxide emission, the company said. The Rio is one of the most environment friendly cars produced by Kia, the company added. Likewise, the car’s MDPS (Motor Driven Power Steering) makes handling very light and a pleasure for driving. Its high suspension allows the Rio to navigate all types of Nepali street conditions without having to worry about ground clearance. The Kia Rio has been rated five stars in terms of safety features by the Euro NCAP. The EXII and above variants of the car are equipped with driver and passenger airbags and ABS (Anti-Lock Braking system). The deeper crash pad with thicker foaming and strengthened front and side sills give an added sense of luxury and, at the same time, better safety. Other interesting featu

NT’s net slides as revenue grows

NEPAL Telecom’s (NT) net profit declined by Rs 1 billion in 2012-13 even as its revenue increased to Rs 37.60 billion. The reason behind the fall in the profit is the payment of the first instalment of the licence renewal fee. In 2011-12, the state-owned company had earned Rs 11.60 billion profits. In the year, its revenue was at Rs 36.79 billion. NT, which is also the largest tax paying company, has projected a net profit of Rs 10.59 billion for the last fiscal year. The company paid Rs 2.5 billion to the government as the first instalment of Rs 20 billion licence renewal fee in January. NT, unveiling its annual plan for 2013-14 on Sunday, said it would generate a net profit of Rs 11.96 billion from the targeted income of Rs 41.65 billion. The income targeted by NT for the current fiscal is up by more than Rs 4 billion compared to projected income of Rs 37.60 billion for the last fiscal year. In a bid to achieve the revenue target, NT has planned to distribute around 3 million mobile and telephone lines besides expanding its data services nationwide. According to NT, the budget and programmes for the current fiscal have been prepared taking into account the increased competition in the market and the need to improve services. It has announced a budget of Rs 69.95 billion which includes a capital expenditure of Rs 19.41 billion, investments in projects of Rs 15.95 billion, bonuses and incentives of Rs 842.89 billion and dividends to shareholders of Rs 612.48 million. Similarly, NT, which is also the largest taxpayer in the country, expects to pay Rs 21.35 billion in taxes to the government. It paid Rs 20.37 billion in taxes to the government during the last fiscal under different heads. “This year’s income is projected to grow with the implementation of the 4.8 million GSM mobile lines project and growth in data services,” said Guna Keshari Pradhan, spokesperson of NT. She added that the company’s revenue target was also based on the plan to distribute 2.91 million telephone lines including 2 million GSM and 886,000 CDMA lines. Under its IP-CDMA project of 2 million lines, NT has already started to distribute new mobile lines that can provide voice and high speed data service using a single RUIM card. According to the company, it is also preparing to distribute RUIM cards through bundling with IP CDMA technology enabled handsets. In the landline segment, distribution of a total of 27,401 new lines is planned for this year. Establishment of customer contact centres, implementation of a convergent real time billing and customer support system, installation of 500 Wi-Fi hotspots in different parts of the country, operation of fibre to the home (FTTH) service and capacity enhancement of ADSL are some of the major plans included in NT’s annual plan. It said that it had already started installing Wi-Fi hotspots using WiMax broadband service and work on the FTTH project had also started with a focus on major business hubs of the country. As of mid-June 2013, NT’s total subscriber base reached 8.96 million with regard to voice services - mobile and landline services adding 1.28 million new customers in the first 11 months (mid-July 2012 to mid-June 2013). In the same period, it added 1.08 million data users taking their total number to 3.17 million. The number of NT’s data users is growing by more than 100 percent each year, according to Pradhan.

Carpet export earnings dip 13pc in last fiscal

EARNINGS from carpet exports declined 13.64 percent to US$ 61.01 million in the last fiscal year 2012-13. According to the Trade and Export Promotion Centre (TEPC), shipments of hand-knotted woollen carpets dropped 22.92 percent to 479,277 sq m along with export revenue. In 2011-12. Nepal exported 621,771 sq m of carpets and earned US $ 70.65 million. Exporters said that increased cost of production and tough competition in the international market were the major factors behind the fall in carpet exports. Ram Gurung, senior vice-president of the Nepal Carpet Exporters’ Association, said carpet exports were affected by

growing competition from Indian and Chinese products in the main export markets. The US is the largest buyer of Nepali carpets followed by Germany, the UK, Canada and Italy. According to the TEPC, Nepal exported 194,399 sq m of carpets (40.56 percent of the total export volume) worth US$ 29.11 million to the US. Earnings from exports to the US amounted to US $ 32.25 in 2011-12 on when Nepal shipped 228,713 sq m of carpets. “As Indian and Chinese traders have been aggressively expanding their markets there, Nepali carpets are having a hard time,” said Gurung. According to him, Indian and Chinese products are cheaper compared to Nepali products. He also identified inadequate publicity and labour shortages as reasons for the decline in exports. “There is no cash or technical support from the government for increasing publicity and participating in international trade fairs,” he added. Similarly, GK Joshi, director of Joshi Carpet, said financial problems in Europe and the US as well as increasing production costs in the country contributed to the decline in exports. “With the revised wages announced recently, labour charges for 100-knot carpets have gone up by US$ 11 per sq m while for 60-knot carpets, wages have increased by US$ 6 per sq m,” said Joshi. He added that the cost of raw materials that are mainly imported from China and New Zealand had also increased to Rs 455 per kg from Rs 380 per kg in one year. Although traders are hopeful due to a recent increase in orders for Nepali carpets, they said labour shortages could affect timely delivery. “Exporters have received orders for 50,000-60,000 sqm of carpet in the last two months from Europe. But we are worried whether we can fulfil the orders on time amid labour problems,” said Joshi. Gurung also stressed the need for government programmes to improve the skill of workers to enhance the sector. “Besides, the government should provide adequate budget for the publicity of Nepali carpets in the international market,” he said. “Also, the government needs to declare a export tax holiday for the next 10 years to enable local products to compete with those from the two neighbouring countries. As per last year’s figures, the Shangrila Carpet and Handicraft topped the list of exporters in revenue. The company exported 16,876 sq m of carpets worth Rs 290.06 million in 2012-13. It was followed by Kaju Art Rugs, Himalayan Art Carpet, NP Rugs Industries and Tibet Carpet.

Private sector not to give donation to political parties

WITH the Constituent Assembly elections just four months away, the private sector has announced to not to offer donations to the political parties. Unveiling the “business code of conduct” on Sunday, 65 business enterprises along with the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) said they would not provide donations to the parties. The National Business Initiatives (NBI) has prepared the code of conduct. The industrialists and entrepreneurs said took such a decision as they have already suffered enough from the parties’ donation drive in the past. “The private sector will not give any donation, gifts and other facilities directly or indirectly with an intention to receive returns later,” Padma Jyoti, former FNCCI President and Chairman of NBI said. The code of conduct also states that the private sector will remain institutionally neutral to any of the political parties.

VDCs to get grants up to Rs 4.6 million

THE Ministry of Federal Affairs and Local Development (MoFALD) has increased the upper limit of the grant given to village development committees (VDCs). VDCs will now get up to Rs 4.6 million, while the minimum grant amount has been left unchanged at Rs 1.5 million. Earlier, the maximum grant amount a VDC would get from the central government was Rs 3 million. The budget for the current fiscal year had announced increasing the grant limit for VDCs. While the grant amount is directly provided to the VDCs, they can also get additional resources under various programmes run by government agencies, according to the ministry. The ministry also determined the amount that municipalities and district development committees (DDCs) receive from the government as grant. There is no tradition of fixing the maximum grant limit for municipalities and DDCs. While determining the grant for the VDCs, population will be given 60 percent weightage, per capita cost 30 percent and area 10 percent. A total of Rs 8.21 billion has been allocated for the VDCs, according to ministry. “The population size — based on the census of 2011 — has been taken as reference for the first time in determining the grant to local governments,” said the ministry’s spokesperson Dinesh Chandra Thapaliya. “Allocating the same amount to VDCs will different population size will not be justifiable.” There are a total of 3,915 VDCs across the country. Of them, 263 VDCs which will get grant in the range of Rs 4 million to Rs 4.6 million, while 335 VDCs will get from Rs 3 million to 3.99 million. Likewise, 770 VDCs will receive Rs 2-2.99 million, and 2,547 VDCs will get Rs 1.5-1.99 million, according to the ministry. As far as the municipalities are concerned, the government will provide a total of Rs 1.15 billion to 58 municipalities. Kathmandu Metropolitan City will receive the maximum amount of Rs 152.44 million, while Siraha will get the lowest Rs 4.31 million to spend in development activities. Grant allocation to the municipalities is based on population, area, per capita cost, human development indicators and capacity to increase internal revenue. Siraha municipality should have received just Rs 1.3 million as per the formula, but Thapaliya said as per the government’s policy, grant amount cannot be less than the lower limit of Rs 3 million. Siraha is also one of the five municipalities that failed in the minimum condition performance measures (MCPM) evaluation. Thapaliya said such municipalities will be provided an additional amount up to Rs 8 million to enhance their capacity. Other municipalities failing in the MCPM are — Biratnagar, Kamalamai, Bhimeshwor and Gorkha. For municipalities, up to 70 percent of the grant is determined based on MCPM, while 30 percent based on the formula. As for the District Development Committees, Kathmandu DDC will receive the highest amount of Rs 87.33 million, followed by Bara (Rs 70.2 million) and Morang (Rs 69.74 million). Dadeldhura will receive the lowest amount of Rs 22.51 million. The grant minimum amount for DDCs is set at Rs 4 million. The grant amount to be given to the DDCs is determined based on the formula and MCPM. Among the DDCs, Jumla, Kalikot, Dedeldhura, Dhanusa, Mahottarai and Sarlahi failed in the MCPM evaluation. “They will get an additional amount up to Rs 3 million from minimum for capacity enhancement,” said Thapaliya. A total of Rs 3.2 billion has been allocated for the DDCs.

Include economic agenda in election manifestos: FNCCI

WITH major political parties preparing themselves for the upcoming Constituent Assembly (CA) elections, the private sector has also begun lobbying to get its agendas included in the parties’ election manifestos. The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has begun interactions with major political parties for the first time to ensure that the “common economic agenda” is included in their manifestos. On Sunday, the FNCCI invited Nepali Congress (NC) leaders to seek their commitment for the same. NC President Sushil Koirala, senior leader Sher Bahadur Deuba and leaders Ram Sharan Mahat and Chitralekha Yadav visited the FNCCI office in Teku, Kathmandu, and expressed their party’s commitment to the inclusion of the economic agendas suggested by the FNCCI in its election manifesto. Stating that the NC had always been focused on the development of the industrial sector, Koirala pledged to take the private sector together. “The disappointing state of the economy is the reflection of the country’s degraded politics,” said Koirala during the interaction. “The lack of a conducive political environment has worsened the business environment too.” As the major thrust of politics is the promotion of democracy and economic development, the NC will give top priority to the economic agendas during the upcoming election, Koirala said. Mahat said all parties should not be put into the same basket. “In the last seven years, the NC never organised any closures and strikes keeping in mind that such activities would derail the business environment,” he said. Mahat highlighted the need for “reviving the spirit” of the early 1990s to promote the private sector and said the private sector should itself identify which party was obstructing the revival of the spirit. “NC is a business- friendly party. We have realised the country will not progress without investment, technology and employment generation by the private sector,” he said. Yadav said NC would not only commit, but implement the agendas. According to FNCCI officials, the business association will continue the interaction with all other political parties. “So far, the FNCCI has been termed ‘a reactive force’,” said FNCCI President Suraj Vaidya. “Now, we would like to establish the FNCCI as a proactive force to promote the economic agenda at the political level.” In a rare gesture of political unity, top leaders of seven political parties had recently expressed their commitment to the country’s hydropower development and decided not to hinder work on any hydel projects. The political parties made the commitment on April 11 at the initiative of FNCCI. “The political parties have committed to promote the economic agendas a number of times in the past,” said a vice president of FNCCI. “This time, we want the commitment to be mentioned in their manifesto.”

NAC to go for wet lease scheme

KATHMANDU: After Nepal Airlines Corporation (NAC) failed to get bidders for dry lease of two narrow-body Airbus A320-200 jets, it has decided to go for wet-lease scheme. NAC sources said the management is likely to propose the board for wet lease scheme next Saturday. “As per the initial proposal, the management plans leasing an aircraft on wet lease basis for a year,” the source said, adding after a year’s operation, NAC’s plan is to change wet-lease scheme to dry lease. A plane supplied with a full operating crew is wet lease, while just the plane is supplied under the dry lease scheme. On May 13, NAC had invited bids for dry lease of two narrow-body Airbus jets for five years to prevent a shutdown of its international service. It received four bidders, but none of them were able to fulfill the requirement as asked by NAC in its bid documents. (PR)

Annual Development Plan targets 1.2 million tourists this fiscal

THE government has envisaged attracting 1.2 million tourists this fiscal year under its Annual Development Plan 2013-14. The figure is 50 percent higher than the annual tourist arrivals last fiscal 2012-13. The country received 803,092 tourists last fiscal year, according to official data. The National Planning Commission (NPC) last week unveiled the plan, which was devised by the Ministry of Culture, Tourism and Civil Aviation. Based on the policies, programmes and strategies for the development of tourism, the ministry formulates the annual plan coinciding with the budget and is endorsed by the NPC. The plan has targeted increasing the average length of stay of tourists to 13 days from 12.87 days recorded last fiscal year. The ministry also plans to increase the contribution of tourism to the country’s gross domestic product (GDP) to 3 percent from the current 2 percent. According to the plan, the ministry has accorded high priority to infrastructure development, conservation of national heritage sites and promotion of home-stay and village tourism in line with its “Vision 2020”, a tourism perspective plan, which aims to bring in 2 million foreign tourists annually by 2020. The ministry has also started work on developing specific and exclusive zones for intensive tourism development under its “18 Tourism Zones” plan. The annual development plan has targeted to increase jobs in the travel and tourism sector to 175,000 from last year’s 160,000. It also aims to increase per day spending of tourists to $45 this fiscal year from last year’s $34.93 and increase international airlines’ connectivity to Nepal to 35 from the existing 26.

Stock market ends week 6.65 points down

NEPAL Stock Exchange (Nepse) slipped 6.65 points last week to settle at 529.15 points on Thursday. The market, which opened at 535.80 points on Sunday, dropped 2.84 points on the Monday before gaining a marginal 0.09 on Tuesday. On Wednesday, the benchmark index shed 3.31 points followed by a 0.59-point loss on Thursday. Ram Chandra Bhattarai, director at Aryatara Investment _ Securities, termed the downfall “a normal scenario”. “The hope that the central bank would ask banks and financial institutions (BFIs) to hike their paid-up capital had contributed to the rise in the index the previous week,” he said. “But as the central bank did not do so, investors were hesitant to invest.” The monetary policy has adopted a strategy of raising BFIs’ paid-up capital requirement, but has not fixed the size of the increment. Currently, commercial banks have to maintain a minimum paid-up capital of Rs 2 billion, national-level development bank Rs 640 million, and national-level finance companies Rs 200 million. Of the nine sub-groups on the exchange, only four saw their indices rise during the review period. With a gain of 47.92 points, the group representing insurance companies was last week’s highest gainer. Other gainers were finance companies, trading and hydropower companies. Bhattarai said investors lately are getting attracted towards the stocks of lifeinsurance companies considering the sector safer. “Besides, investors are also finding the sector as the best alternative to expand their portfolio,” he said. The Others group was last week’s biggest loser — down 17.62 points. Hotels and commercial banks followed. The sensitive index that measures transactions of ‘A’ category companies declined by 2.29 points to close at 132.76 points. Among individual companies, Everest Bank posted the highest transaction of Rs 92.74 million. NIC Asia Bank, Chilime Hydropower Company, Nepal Investment Bank and Nepal Credit _ Commerce Bank were the top five companies by transaction worth. Nabil Balance Fund continued to top the chart in terms of the number of shares traded (505,893 units). The overall market transaction rose 84.13 percent to Rs 724.6 million from the trading of 2,531,949 shares. Transaction of ‘A’ category companies amounted to Rs 378.7 million — 52.27 percent of the total market transaction.

Work on Upper Marsyandi hydro project resumes

AFTER four days of interruption, construction work on the 50-MW Upper Marsyandi Hydropower Project is all set to resume Sunday. Citing lack of security, contractor Sino Hydro had halted the construction work on Wednesday. After sixyear- old Akanshya Tamang of Khudi was drowned in the Marsyandi River last Saturday, the locals blamed the project for the incident and vandalised the projects’ vehicles. Arjun Gurung, the project’s communications officer, said the developers decided to restart the construction work after the local administration committed to ensure security to the project and bring the vandals to the book. “A tripartite meeting between local political leaders, administration and project officials decided to ensure security to the project and take action against the culprits,” he said. Sang Yu Min, president of Sino Hydro, had also observed the project in course of the dialogues to resolve the problem. While returning from the project site, he had informed that the project would be resumed. Earlier, the developer had sent a letter to the Embassy of China in Kathmandu, stating there was working environment at the project site. Stakeholders said as Lamjung has been recognised an investmentfriendly district, the project should not be closed under any circumstances. “We will try our level best to ensure security to the project,” said Chief District Officer Baburam Bhandari. The project said it incurred a loss of Rs 400,000 per day during the closure. Sino Hydro holds a 90 percent share in the project, while Nepali developer Sagarmatha Hydropower Company holds the rest. According to the developers, the construction of the run-of-the-river project will cost around Rs 10 billion. As per the power purchase agreement (PPA) signed with the Nepal Electricity Authority (NEA), the project will receive 6.95 cents from the government for per unit energy.

Nepal Telecom’s data market share rises to 46 percent

NEPAL Telecom’s market share in the data segment has increased by 5 percentage points in the one year period between mid-June 2012 to mid-June 2013, supported mainly by the growth in the number of users of its GPRS, WiMax and ADSL services. Ncell, however, remains the leader in the segment. NT added 1.15 million new data users in the review period to take its data users’ tally to 3.1 million, according to the latest Management Information System report released by the Nepal Telecommunications Authority (NTA). With this, NT’s share in the domestic data market has increased to 46 percent from 41 percent. Ncell data market share fell to 51 percent from 57 percent a year ago. It has 3.4 million users of its GPRS, 3G and Ncell Connect services in it GSM network. United Telecom Limited’s data market share stood at 2 percent with 92,817 users, while ISPs hold 1 percent data market share with 85,817 users. NT attributed the growth in its data segment to increased subscription of GPRS, WiMax broadband and ADSL services. The company also offers other data services like dial-up in landline network, 3G in GSM network and EVDO in CDMA network. “The main factor for the growth in our data user numbers is our cheaper service,” said Surendra Prasad Thike, deputy managing director of NT. NT offers GPRS and 3G data services at Rs 1 per MB and plans to further slash the price to 50 paisa per MB. The company recently launched the Sky Pro service in it CDMA segment which provides data service at 50 paisa per MB. The demand for data service has been increasing tremendously due to the availability of affordable smartphones in the local market and expanding service networks of telecom companies. Until mid-June 2013, the data penetration rate has reached 25.82 percent of the total population. With the demand booming, telecom companies and internet service providers are engaged in intense competition to attract customers by launching attractive schemes. Milan Sharma, corporate communications expert of Ncell, said its data service offers mobile internet at 29 Paisa per MB. “We have need-based packages for different segment of customers,” he said. During the review period, Ncell added around 700,000 data users. A recent report of TeliaSonera, Ncell’s parent company, said Ncell’s income from the data segment increased by a whopping 94 percent in the first half of 2013. In the total revenue of Ncell, income from data service contributes 6 percent. Meanwhile, Ncell’s market share in voice telephony reached 50 percent by Mid-June 2013. Of the country’s total telecom subscriber base of 20.89 million, Ncell has 10.34 million users, according to the NTA. The number of NT’s subscribers touched 8.96 million, whereas Smart Telecom has become third largest telecom company with 713,900 customers. United Telecom Limited, Nepal Satellite Telecom and CG Communications have 709,834, 149,698 and 5,385 users, respectively. Nepal Telecom added 1.15 million new data users in the one year period between mid-June 2012 to mid-June 2013 ISPS MID-JUNE 2012 MID-JUNE 2013 Ncell 2.7 million 3.4 million Nepal Telecom 2 million 3.1 million United Telecom 74,377 92,817 ISPs 62,303 85,817 (Source: Nepal Telecommunications Authority) DATA USERS