Xperia Z Ultra rolled out

NEPA Hima Trade Links, the sole authorized distributor of Sony in Nepal, has introduced the Xperia Z Ultra waterproof phone. The new device from Sony has a 6.4-in full HD triluminos display for mobile powered by x-reality for mobile engine for the ultimate big screen entertainment experience, the company said. According to Sony, the new device is supremely slim and lightweight with a beautifully crafted 6.5 mm body and weighing just 212 gm for ultimate portability. It features the same acclaimed OmniBalance design as the Xperia Z and Tablet Z. The Xperia Z Ultra is available in a choice of black, white or purple colour finishes. The company claims that the new device from Sony is both elegant and durable. “With an impressive rating of IP55 and IP58, this smartphone isn’t only resistant to dust, but is waterproof too — giving you the freedom to enjoy it anywhere,” the company said in a statement. Likewise, the Xperia Z Ultra is uniquely positioned to offer the ultimate big screen phone entertainment experience for watching movies, playing games, reading books and browsing the web. Sony has equipped this device with the world’s fastest smartphone processor the Qualcomm Snapdragon 800 processor with HD voice, which together with Sony´s audio ClearAudio plus mode and Xloud loudness enhancement, delivers not just exceptional speed and performance, but also unsurpassed voice and audio quality, the company said.

Pashupati Paints Dashain scheme

KATHMANDU: Pashupati Paints has introduced its Dashain scheme named “Win-a-Home Contest”. The company said the scheme will run from September 10 to December 15. Under the offer, consumers purchasing Luxuria Eco-Safe, Luxuria Premium Interior Emulsion, ExCoat Plus Exterior Emulsion, ExCoat Exterior Emulsion or OneWay Interior Emulsion worth Rs 20,000 will be given a scratch coupon with a unique lucky number. The consumers will have to text the number to 7337 to be enrolled for the lucky draw. A lucky draw will be held every week wherein five persons will win 10 tolas of silver. This lucky draw will be held for 10 weeks. As a bumper prize, 10 couples will win a two-night trip Pokhara, one person will win a Hero Pleasure scooter, a couple will win a four-night five-day Singapore trip, and the grand bumper prize will be an apartment in Downtown Apartments, Kathmandu. (PR)

SDBL auto loan

KATHMANDU: Siddhartha Development Bank has introduced SDBL Auto Loan. In a statement, the new loan scheme charges an interest rate of 11.99 percent. Moreover, the bank is offering a 50 percent discount on service charge and will sanction up to 80 percent loan against the value of vehicle being purchased. The bank has said the interest rate won’t change for a year and the repayment time will be up to seven years. The new scheme will be valid for three months. (PR)

AUTO SHOW SET TO UNVEIL NEW MODELS

THE only auto show of the country, the NADA Auto Show, is set to kick off at the Exhibition Centre in Bhrikuti Mandap, running from Sept 11 to 15. Organised by the Nepal Automobile Dealers’ Association (NADA), the apex body of the country’s auto industry, and the Global Exposition and Management Services (GEMS), the event will bring together major automobile stakeholders under one roof. Apart from exhibiting different brands side-byside, the NADA Auto Show is also the prime occasion for manufacturers to unveil new automobiles. And like previous editions, the expo will be a platform for the launch of several enticing products. Here are of some of the highly anticipated new automobiles being rolled out at the auto show: VOLKSWAGEN POLO GT-TSI Pooja International, sole distributor of Volkswagen vehicles in the country, is unveiling an upgraded version of its successful hatchback Polo model, the VW Polo GT-TSI. The vehicle comes with a three-cylinder, 1198 cc TSI petrol engine or a 1598 cc four-cylinder diesel engine. While the petrol variant has a maximum power of 105 bhp and torque of 175 nm, the diesel variant offers 105 bhp of power and 250 nm of torque. Pooja International is yet to disclose which variant, if not both, will be available in Nepal. HYUNDAI SANTA FE Laxmi Intercontinental, the sole authorised distributor of Hyundai vehicles in Nepal, will be unveiling the Hyundai Santa Fe at the NADA Auto Show. The premium SUV is powered by a 2199 cc CRDi diesel engine, which can produce a peak power output of 197 bhp at 3,800 rpm and a maximum power output of 420 nm at 1,800 rpm. “We have already sold a few vehicles to diplomatic agencies. However, the official launch will take place in the NADA Auto Show,” said Anjan Shrestha, the managing director of Laxmi Intercontinental. The arrival of the Santa Fe will only strengthen the company’s position in the domestic SUV market, where presently only the Hyundai Tucson is available. KTM DUKE 390 Hansharaj Hulaschand and Company, a subsidiary of the Golchha Organisation and the sole authorised distributor of KTM motorcycles, will be adding one more member to the KTM family in Nepal. During the auto show, the company will be introducing the KTM 390 motorcycle. The new KTM machine features a 373.2 cc single-cylinder, four-stroke engine that can generate a maximum power output of 44 bhp at 9,500 rpm and a peak torque of 35 nm at 7,250 rpm. The engine features a six-speed manual transmission system with a gear shift pattern of one gear down and five gears up-shift. The KTM can accelerate from 0 - 100 km in 7 seconds. According to the company, the two-wheeler is likely to cost around Rs 550,000. HONDA CB TRIGGER To strengthen its current 150 cc market positioning, the Syakar Trading Company, the sole authorised distributor of Honda two-wheelers in Nepal, will be bringing in the Honda CB Trigger motorcycle. The bike has got a 150 cc aircooled Honda engine, which can generate a peak power of 13.81 bhp at 8,500 rpm and maximum torque of 12.5 nm at 6,500 rpm. Its engine has been installed with a five-speed manual transmission system. Honda has claimed that the machine can accelerate from 0 - 60 kph in just six seconds, reaching a maximum speed of 110 kph. The CB Trigger will be competing with category giants such as the Bajaj Pulsar, Yamaha FZ-S, TVS Apache and Hero CBZ Extreme. The twowheeler is likely to be priced at around Rs 225,000. YAMAHA RAY Z After the success of the Yamaha Ray, MAW Enterprises, lone distributor of Yamaha in Nepal, will be introducing the Yamaha Ray Z during the auto show. While the preceding variant, the Yamaha Ray, was aimed at female drivers, Yamaha has designed the new model to target male fans as well. The Yamaha Ray Z has a 113 cc air-cooled, four-stroke SOHC engine that can generate a maximum power of 7 bhp at 7,500 rpm, and peak torque of 8.1 nm at 5,500 rpm. It reaches 0 - 60 kmph in 12 seconds and has a top speed of 85 km. Yamaha has claimed that the machine delivers a mileage of 45 kpl in the city and 62.1 kpl on the highway. HONDA ACTIVA-I The leader in the domestic scooters market, with the Honda Dio and Activa, the Syakar Company will be introducing the Honda Activa-i during the auto show. Honda, dominant in the domestic scooter market, will look to further its command in the market with this new two-wheeler. Activa-i is equipped with a 109.2 cc, four-stroke SI engine, which can derive a maximum power output of 8 bhp at 7,500 rpm and a maximum torque of 8.74 nm at 5,500 rpm. The machine will be available in alpha red metallic, purple metallic, pearl sunbeam white and beige metallic colour options.

Brick factories not registered with VAT to be shut down

THE government is preparing to close down brick kilns that have not been registered with the value added tax (VAT) office as per this fiscal year’s budget announcement. The Inland Revenue Department (IRD) intends to get tough against brick factories as many of them have been continuously disregarding orders to register themselves as VAT payers. The government’s annual financial plan for this fiscal year has introduced a provision requiring brick factories to come under the VAT net. The budget has also revoked the provision under which brick factories with annual transactions of less than Rs 2 million were exempt from VAT. “We have asked brick makers to register themselves with VAT by Oct 17,” said Tanka Mani Sharma, director general at the IRD. He added if the brick factories are found to be operating without being registered with VAT, they would be closed down by the government. However, the outstanding VAT of previous years will be written off. As per the VAT Act, the tax is imposed on businesses having transactions of more than Rs 2 million annually. Rajan Khanal, chief of the Revenue Management Division at the Finance Ministry said that the Rs 2 million ceiling had been removed under the assumption that there wouldn’t be any brick factory with annual transactions of less than that amount. He added other businesses like hardware shops, discotheques, dance bars and dry cleaners, among others, had been brought under the VAT net without any limit on the turnover. A recent IRD study found that brick kilns in the Kathmandu valley produce 5-20 million bricks each at a time. A factory produces bricks five-six times a year. A brick costs around Rs 10 apiece. The budget for the current fiscal year had adopted this provision after the government’s previous attempts to bring brick factories under the VAT net failed. The provision also comes against a backdrop of several failed attempts to bring brick makers under VAT due to political patronage. Last year, a committee formed by the Finance Ministry had also recommended that brick kilns be brought under the VAT regime. The 11-member committee consisting of officials from the ministry, brick manufacturers and a representative from the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) had recommended that brick makers be forgiven from paying past VAT. Meanwhile, IRD officials said that brick makers had begun registering themselves with the VAT office. As of the last fiscal year, around 250 brick factories had come under the VAT net. Mahendra Bahadur Chitrakar, president of the Bricks Producers Association, said that a number of brick makers were preparing to come under the VAT net. He added they would join the VAT regime on the condition that government take special care of their business to ensure security of their investment. “As the business is seasonal, the government should give us special treatment,” he said. “Otherwise, what is the point of paying VAT when we have business and the government doing nothing for us during the monsoon when our business is almost dead?” Chitrakar, who is also president of the Federation of Brick Industries, questioned how the government could impose VAT on a “seasonal business” like brick manufacturing. He said that brick factories were always at risk of losses as their products are easily damaged by rain or other extreme weather conditions. Brick producers also said that the government should come up with specific programmes and policies to organise the sector. A total of 21 associations are affiliated to the federation, while around 1,000 registered brick factories are in operation across the country. Last year, the IRD published a notice asking brick makers to register themselves with VAT. It also confiscated the books of accounts of two dozen brick kilns in the valley on the charge of not complying with VAT. Responding to the IRD move, the federation launched an agitation suspending brick sales in the Kathmandu valley. Following the row between the IRD and brick factories, a dialogue committee formed by the Ministry of Finance had recommended that brick kilns too be required to pay VAT.

Chitwan businesses protest DRI action

THE Department of Revenue Investigation (DRI) has directed Laxmi Narayan Bastralaya to pay Rs 45.8 million within the next 15 days in a VAT evasion case. However, there is no sign that Laxmi Narayan Bastralaya, one of the famous clothing stores of Nagayangadh, will pay the taxes. The DRI’s decision has business communities condemning the penalty, with the Chitwan Chamber of Commerce (CCC) protesting the DRI’s action. Laxmi Narayan Shrestha, owner of Laxmi Narayan Bastralaya, has been charged with evading taxes. Businessmen said the department reached the decision based on loan documents. “The government has to impose tax on the transaction amount, as per law,” said Kalyan Joshi, senior vice-president of CCC. Narayangadh’s shops have protested the DRI’s move by hanging a black banner in the shops. Businessmen have requested the Finance Minister, through the Chief District Officer, to review the case. Joshi said that they were also preparing to meet the Chairman of Interim government, Khil Raj Regmi, through the Federation of Nepalese Chambers of Commerce and Industry, regarding the issue. Last year, the DRI raided Laxmi Narayan Bastralaya, suspecting tax evasion. At that time, local businessmen set ablaze a government vehicle, vandalised police property and acted imposingly towards government officials in protest of the raid. The DRI has said if the businesses have any reservations, they can seek legal remedies. “We had raided the shop for the issue of VAT evasion,” said Khum Raj Punjali, director general of the DRI. Laxmi Narayan Bastralaya can now approach the Inland Revenue Department for administrative review and also file an appeal in the Revenue Tribunal. Normally, once an appeal is filed at the tribunal, the applicant receives 30 days to prepare. Shrestha of Laxmi Narayan Bastralaya owes Rs 120 million to the government in revenues such as income tax and penalties. However, Shrestha said that he was not in a financial condition to clear the dues to the government. The shop has been operational for the last 36 years.

Ministry aims for transparency in new guidelines for manpower agencies

THE Ministry of Labour and Employment (MoLE) has referred a new draft of guidelines for manpower agencies to the Cabinet. The new guidelines, which are expected to incorporate new rules and regulations for recruitment agencies, will potentially resume communications in the process of licence issuance. The government had stopped the issuance of licences to the recruitment agencies, citing several irregularities in the overall procedure. Former labour minister Kumar Belbase was caught redhanded on video tape asking for a bribe from prospective manpower companies to assure the issuance of a licence. He was later sacked by the then prime minister Baburam Bhattarai. Several ministers and government officials were allegedly involved in the corrupt actions, however, no one was actually punished. The guidelines in question will be applied to both the existing and new manpower companies. Although refusing to divulge any details, the government officials said they had incorporated new rules, regulations and code of conduct for the functioning of the overseas agencies. Labour ministry officials said the prime objective of the new guidelines was to replace the outdated provisions with an updated version. They said the existing regulations and provisions had failed to cover new challenges faced by the foreign employment sector. “We expect to resolve all the existing anomalies surrounding the foreign employment sectors with the new guidelines. It can be done only by reining in the manpower agencies where the root of all the problems lies,” said Buddhi Bahadur Khadka, spokesperson of the labour ministry, adding, “The new guideline is expected to be endorsed by the Cabinet within the next few weeks.” Khadka, who also heads the foreign employment division in the ministry, said there would be a change in the provisions of the guaranteed amount for recruiting agencies and agents, educational criteria and building criteria for the agents. A MoLE source said the amount of the guarantee could be doubled, and the agent must possess a School Leaving Certificate equivalent to work. Similarly, the new provision has reportedly set the criteria for the main office building. The head office should have at least eight rooms, said the source. Khadka said that the ministry did not have any immediate plans to resume the suspended process of the licence issuance. But officials at the Department of Foreign Employment said the ministry was preparing to begin the licence issuance procedure. They said that they were devising proper measures to keep the overall process transparent and free of controversy. “The ministry is reportedly planning to resume the stalled process as it’s not good for a competitive market to suspend the licence distribution for too long. But there has not been any official information,” said spokesperson for the Department of Foreign Employment, Divash Acharya. Representatives of the Nepal Association of Foreign Employment Agencies (NAFEA) said a few provisions included in the draft including the educational criteria for operators and manpower agents should be scrapped. FOREIGN EMPLOYMENT SECTOR REFORM

Nepal, India move closer to historic pact on tourism

NEPAL and India are poised to sign a historic memorandum of understanding (MoU) on investment and cooperation in the tourism sector. Stakeholders from both sides gathered here on Monday to discuss a mutually agreed draft MoU, jointly prepared by a technical team from the travel and tourism sectors of both the countries. As per the team findings, to facilitate overland tourists, it has been recommended to create hassle-free transport movement at major border points and ease frontier formalities at the customs. The team has recommended instilling a sense of security among visitors to create an opportunity in the tourism sector. As Nepal has not been able to explore full tourism potential in the Far West Region, the panel has recommended opening of the Banbasa Bridge on the Nepal-India border for more than 12 hours from the current three hours a day. The panel has also recommended that Nepal cash in on the travel benefits provided to Indian holidaymakers as leave travel concession. Effective coordination with Indian railway and Indian airlines was among other recommendations of the panel. “As expensive airfare has been a major concern for Indian travellers, the governments of Nepal and India must jointly take an initiative to reduce ticket prices,” said travel trade entrepreneur Yogendra Sakya. “This can be done by reducing ground handling and parking charges for airlines on a reciprocal basis.” The panel has also recommended that landing and parking charges be imposed in Indian currency terms. One of the pertinent issues raised was the restriction on the transaction of 500- and 1,000-rupee Indian currency notes in Nepal. “Restriction on transaction of IRs 500 and IRs 1,000 denomination Indian banknotes has been a stumbling block,” Sakya said. Meanwhile, the panel has recommended eliminating confusions about debit and credit cards. Cards issued by Indian banks are imprinted “the card is not valid for foreign exchange in Nepal and Bhutan”. However, the cards actually are valid in Nepal and this confusion should be removed, Sakya added. The panel has proposed holding annual Nepal-India tourism forum meeting and explore possibility of a joint tourism promotion abroad. With stakeholders’ input, the panels representing all major chambers of Nepal will handover the draft to the tourism ministries of both the countries for the signing of the MoU. “I assure to send these precise recommendations made for the two governments to address the tourism sector of both countries with strong endorsement to our tourism ministry,” said Ranjeet Rae, newly-appointed Indian ambassador to Nepal. As “India is a travel bug” now, there is no reason that Indian will not come to Nepal, Rae said, underscoring the need for targeted promotion in specific cities to increase Indian travellers. Rae said like in the past, Nepal should attract film producers who are the major promotional drivers. Besides, millions of Buddhist population has intense desire to visit the birth place of Gautam Buddha in Nepal and given this opportunity, we should work together for the development of Lumbini, Rae said. Tourism Secretary Sushil Ghimire said the proposed MoU will explore investment opportunities. He said the ministry is ready to revise the air service agreement with India if the existing air seat facility is not adequate to cater to increasing travellers’ movement. “On behalf of my ministry, I will leave no stone unturned to facilitate and address or convince the Nepal government on the need of MoU between the two governments.” The Monday’s meeting is a follow- up of the July 2012 meeting with the Nepali delegation with the Ministry of External Affairs of India’s Northern Division that has prioritised tourism as one of the most important sector. Visitors from India, the largest tourist source market for Nepal, spent 9.34 days per visit per person on an average last year compared to 7.99 days a year before. Nepal received 174,146 visitors from India last year, among whom 122,775 were first-time visitors. (From right) FNCCI President Suraj Vaidya, Tourism Secretary Sushil Ghimire, Indian Ambassador to Nepal Ranjeet Rae, Nepal-India Chamber of Commerce and Industries President Sashiraj Pandey at a programme in Kathmandu on Monday. POST PHOTO: PRAKASH TIMILSENA

Public financial accountability system ‘severely threatened’

THE accountability system in public finance (government spending) is being severely threatened due to a weak link between voters and the government, dissolution of the legislature and absence of leaders in key accountability bodies, a report says. Absence of a national legislature has led to the absence of functioning parliamentary committees for legislative budget review and legislative audit scrutiny, as well as the absence of sector-specific parliamentary committees to hold the government to account, according to a study titled “Operational Risk Assessment of Public Financial Management Reform in Nepal: A Review of Challenges and Opportunities” conducted by the Centre for Aid and Public Expenditure says The report made public on Monday has suggested forming a mechanism of the civil society as a stop-gap measure to fulfill the vacuum of the Parliamentary Public Accounts Committee given this context. Besides ineffective oversight, the report has also pointed out dysfunctional budget process, weak capital project implementation and flawed central finance institutions as major hurdles to better public finance management. Tahseen Sayed, country manager of the World Bank, said Nepal’s development partners are deeply committed to support public financial management reforms. “Credible improvements in PFM systems would strengthen the government’s case for channeling more development assistance through country systems,’ she said. The report said disarray of the budget process has led to much execution of the budget occurring in the final trimester of the year. The first and second trimesters often see the continuation of planning and negotiation with exception of salary expenses. The report has suggested presenting the budget two months prior the beginning of the fiscal year. While under spending of the capital budget is a problem, the report says it is further weakened by external interferences in decision making which diverts spending to lower priority projects and causes fragmentation of the capital budget. The WB country manager said legal framework recognises the need for flexibility for budget execution and allows reallocation to a limited extent. “While flexibility is important, reallocations within capital spending have reached as high as 30 percent of the total capital budget,” she said. There are reports of losses and leakages of funds and inflation of user cost of consumer and overcharging by the consumers committee, the report says. The procurement and contracting are weak in terms of both competition among contractors and technical capacity of procurement planning. Besides the vacuum in political governance, outdated audit technique and skills have also constrained the audit and oversight of public financing, the report says. Local government audit arrangements for VDCs and municipalities are hamstrung by capacity constraints and prone to political capture, according to the report. The report has suggested improving technical prioritisation, strengthening fiduciary controls through local monitoring and clearer norm setting for project input costs, improving procurement practice through the training of officials and enhancing the performance of contractors through enforcement of minimum standard for materials.

NT ties up with Bharti Airtel

KATHMANDU: Nepal Telecom (NT) and the Bharti Airtel, an Indian telecom operator, on Sunday launched a new promotional scheme allowing subscribers of Airtel from New Delhi to make calls to NT's network in Nepal at a cheaper rate. The scheme will come into effect from Sunday. In a statement, NT said Airtal's subscribers will be able to talk for 10 minutes, costing only IRs 54. Previously, users would be charged IRs 10 per minute on an average. Currently, it costs Rs 2.90 per minute (excluding taxes) to make a call to India from NT's network, dialing the access code 1424.

DASHAIN POPULARITY PARAMOUNT IN RETAIL REVIVAL

AS the festive season approaches, consumers have flocked to major shopping malls in the Kathmandu valley. Merchants said promotional discounts and offers have been effective in attracting shoppers thus far. Amid a slump in the retail sector due to uncertain economical times, an increase of trade in essentials, like footwear and apparel, has boosted sales in commercial complexes. Merchants at City Centre, Kamalpokhari: Civil Mall, Sundhara and KL Tower, Chuchchepati said they are witnessing an increase in the flow of customers. The City Centre Chief General Manager Rajesh Lamichhane said they were witnessing over 6,000 visitors daily. “The figure shows a notable growth in the number of visitors compared to the situation in the last few months,” said Lamichhane. According to him, a number of shops at the City Centre have been offering discounts of up to 50 percent on products. The City Centre operates over 40 shopping outlets. Lamichhane said many outlets have already started selling new products, targeting festivals. According to him, they will offer bumper prizes of motorbikes and four-wheelers to attract more customers during the festive period. KL Tower said that the shopping destination too was witnessing increasing foot traffic at present. “Slow business during the monsoon saw a downfall in businesses, but this has been relieved by the opening of the festival shops,” said Ganesh Dhungana, general manager at the KL Tower. According to him, many Dashain shoppers from out of the valley have now started purchasing products for the festival. A number of shops in the KL Tower are offering discounts of up to 30 percent, targeting Dashain shoppers. According to Dhungana, shops are considering further discounts to attract buyers. The KL Tower houses 70 shopping outlets, and while it presently accounts for an average of 3,000 customers daily, Dhungana anticipates the number will rise. “We have projected the number to reach 8,000-10,000 people per day until Dashain.” The Civil Mall is launching coupons, gift offers, and entertainment packages from Saturday. “Based on the increasing flow, we have estimated the footfalls to total 700,000 during Dashain and Tihar,” said Aamir Thakuri, marketing manager at the Civil Mall. The commercial complex houses over 100 shops related with apparels and footwear. Despite the rising number of customers, merchants expressed their doubts about gaining significant business due to the inflated price of imported outfits. “The rising price could adversely affect sales,” said Dhungana of the KL Tower. According to him, the market price has surged by around 20 percent.

Bishal Chemicals loses trademark amid tax case

AS the tax evasion case against Bishal Chemicals, a factory producing Gutkas, is under consideration in the Morang District Court, the government authority has provided its trademarks to another factory’s products. The Department of Industry has scrapped the trademark of Bishal Chemicals’ products (like Madhu Guthka, Madhu Sweets, and Priye Parag), registering the similar looking trademark signs of the Sunsari-based Janaki Products. The business community has expressed surprise over the decision of the department. They are of the view that the government should have focused on recovering the lost revenue by freezing the trademark of Bishal Chemicals instead of allocating the same trademark to another one. “At a time when a court hearing is undergoing in the revenue evasion case, the trademarks of the popular brands trademark have been offered to another factory. This is an unfair move,” said prominent business person, Parshuram Agrawal from Bhadrapur. “This has confused and surprised people of the business fraternity.” A family member of the industrialist Bhawani Shankar Bohora, who owned the Bishal Chemicals, said that the company has filed a case against the Department of Industry at the Patan Appellate court. Industrialist Bhawani Shankar and Suresh Jain have provided bail worth Rs 35 million and Rs 3 million respectively.

Internal conflict mars tunnel road project

THE Nepal Purbadhar Bikas Company Limited (NPBCL) has faced a setback before commencing construction work on the highly anticipated Kathmandu-Kulekhani-Hetauda Tunnel Highway, with one of its board members resigning. Bikram Pandey resigned from the position on Thursday, citing “irresponsible decisions” by Chairman Kush Kumar Joshi, former president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). The resignation has raised concern over the future of the project, as Pandey heads a successful construction company. Pandey has accused Joshi of misusing the power and resources of the company for personal benefits, allegations which Joshi has rejected. The NPBCL, the country’s first infrastructure development company, was established specifically to contruct the 58km Kathmandu- Hetauda tunnel road. Pandey, who resigned from the post on Thursday, was one of the 12 board members of the NPBCL. “I do not see the tunnel highway dream eventuating, due to the activities of the chairman, so I opted to resign before it is too late,” said Pandey, who is chairman of the Kalika Group, one of country’s leading construction companies. He is also one of the advisors of the Federation of Contractors’ Association of Nepal (FCAN). Pandey said that Joshi had failed to share information regarding resource collection, appointment of staff, donations provided and assigning a consultancy service of Rs 85 million without free competition. However, Joshi said that the accusations were only “personal dissatisfactions”, stating that the institution was being run in a transparent and systematic way. “We will accept his resignation, and at the annual general meeting of the NPBCL (scheduled for September 23), we will discuss the issues pointed out by Pandey,” said Joshi. He also said that Pandey had never been supportive towards the team and the project. The Ministry of Physical Infrastructure and Transport, which handed over the project to the NPBCL, said that the dispute was a result of a “personality clash”. Pandey was included in the core team based on his expertise in the construction and infrastructure development sector, according to one board member of the NPBCL. Lal Krishna KC (Vice-chairman of the NPBCL), Jayram Lamichhane (President of the FCAN), Pradeep Jung Pandey (Vice-president of the FNCCI), Sukunta Lal Hirachan (Chairman of the United Builders), Subash Chandra Thakuri (Former Chairman of the Sisneri VDC), Siddhi Lal Shrestha (Senior Vicepresident of the Nepal Petroleum Dealers Association), Mohan Basnet (Former Chairman of the Talku VDC), Raju Man Maharjan (Former Chairman of the Kulekhnai VDC), Khushbu Sarkar Shrestha and Nugal Ananda Vaidhya are other members of the board. Lamichhane said that small disputes in initial phases would not affect the overall aim of building the tunnel highway. “We will devise a standard operating procedure and move ahead,” he added. Around 200,000 individuals, private sector institutions, local government bodies of Kathmandu, Lalitpur and Makawanpur are expected to contribute Rs 10,000-Rs 1 million towards the eagerly awaited project. The Kalika Group has invested Rs 1 million in the tunnel highway project, according to a board member. The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), FCAN, bank and financial institutions, Nepal Association of Foreign Employment Agencies and Non-resident Nepalese are some of the institutional investors in the projects. The proposed tunnel highway will link Hetauda to the capital, with commuters reaching their destination in just one hour. It is estimated that the project will cost around Rs 35 billion and will be completed by December 2016. Four months ago, the NPBCL had received permission from the government to build the tunnel highway, which is the first toll road of the country under the build-operate- transfer (BOT) model.

Angry staff stage Grameen bank lockout

EMPLOYEES of the Purbanchal Grameen Bank (PGB) padlocked the bank’s central office on Sunday. The PGB’s employees have blamed the bank’s board for failing to carry out the necessary research for its merger. The PGB staff staged the protest when the Nepal Rastra Bank has been taking initiations to merge five rural development banks, situated in five developmental regions. A year ago, the central bank had the board directors of the banks sign a memorandum of understanding. The NRB also directed the banks to carry out a due diligence audit of all financial transactions and to conduct an annual general meeting (AGM) within the first week of September. The PGB’s three workers’ unions padlocked the office to protest the banks failure to conduct the AGM within the prescribed time. Ram Dhakal, president of the Congress Allied Nepal Finance Institution’s workers union said they had padlocked the office for an indefinite amount of time. Meanwhile, the CPN-UML allied employees’ union and the UCPN (Maoist) allied union have also expressed their solidarity for the employees move. According to a report, the rest of the rural development banks, except the PGB, have already conducted their AGMs. Dhakal blamed the PGB board for disrupting the merge. “The board has deliberately been delaying the AGM so as to put off the merging plan.” The PGB’s employees have threatened to padlock all of the branch offices, should the board fail to conduct its AGM by next week. The PGB has been operating 31 branches in districts including Morang, Sunsari, Jhapa, Saptari, Siraha and Udayapur. The bank has provided collateral free loans, totaling Rs 9 billion, to over 36,000 deprived women. Of the total loan, it has recovered Rs 8.31 billion. The PGB has been struggling to recover Rs 150 million from the borrowers after the Maoistled government five years ago decided to waive off loans worth Rs 10,000-Rs 30,000 for the borrowers of the Nepal Bank, the Agriculture Development Bank, the Rastriya Banijya Bank and the Small Farmers’ Development Bank. Customers of the PGB have demanded that their loans be waived, and have been refusing to repay liabilities.

IPB mulls lifting ban on co-op investments

THE government has commenced research reviewing the current restrictions on cooperatives investing in industries. So far, no industrial act in the country permits cooperatives to set up industries, while the Cooperative Act 1992 bans cooperatives from being involved in any profit making sector. The 206th meeting of the Industrial Promotion Board (IPB), held on Friday in the chairmanship of the Industry Minister, Shankar Prashad Koirala, has decided to take inputs from the Ministry of Law, the Finance Ministry and the Nepal Rastra Bank (NRB) whether to allow cooperatives to invest in any industrial firms. “Following several queries and interests shown by cooperatives, the meeting decided to begin thorough preparations to make a policy level decision that will state clearly if cooperatives be allowed to set up factories or not,” said Dhruba Rajbanshi, member secretary of IPB. He said a committee formed under his coordination will begin the process of taking feedback from the mentioned agencies, with comments given further consideration at the next IPB meeting. So far, investors can register their industries (with more than Rs 30 million capital) under three acts, including: the Private Firm Registration Act - 1958, the Partnership Act- 1964 and the Company Act - 2006. “Industrial firms proposed by cooperatives cannot be registered under any provisions mentioned in these acts,” said Rajbanshi, who is also director general at the Department of Industry (DoI), adding, “The existing Industrial Enterprises Act has also mentioned nothing to this regard, which is why it requires a policy level decision in regards to cooperatives’ investment in industries.” The Ministry of Industry (MoI) said the debate in regards to potential cooperatives’ investment in industries began seven months ago after the Sugarcane Cooperatives applied for setting up a sugar factory at the ministry. “Subsequently, a committee formed under the leadership of Rajbanshi recommended that the cooperative can set up the industry,” said an official at the ministry.

43pc capital expenditure in last month of FY: ADB

THE government spent 43 percent of the capital budget in the last month in FY 2012- 13, while capital expenditure in the last quarter stood at 64 percent, a report has shown. “This raised concern about not only the absorbing capacity of but also the procedural and procurement delays along with realistic expenditure planning of the capital budget,” states an Asian Development Bank (ADB) report. The government had allocated Rs 66.13 billion under the capital budget heading in FY 2012-13. ADB’s latest ‘Micrœconomic Update’ of Nepal states there has been civil work growth of just 3 percent, reflecting a delayed full budget and procedural hassles in approval and procurement for projects. Secretary at the Ministry of Physical Infrastructure and Transport Tulasi Prasad Sitaula said half of the payment made in the last month of the fiscal year was related to work completed in the earlier months and that it should not be considered that all work was completed in the last month. But he admitted to the trend of late spending, which he said must be changed. He said the code of conduct issued by the Election Commission has affected work as they are finding it hard to send necessary officials to work sites. According to the ADB report, even within the capital expenditure, land purchase and building construction registered a negative growth, while expenditure for vehicle purchase grew by 50.4 percent. Expenditure for plant and machineries grew by 18.8 percent. Lack of project readiness due to the failure to acquire land, establishment of project management offices and preparation for procurement plans, delay in budget release, delay in procurement process and overall weak project planning resulted in poor capital expenditure, the report says. The ADB has stressed on the need for rationalization in ballooning recurrent expenditure which is almost equal to the total tax revenue. “There is a need to reduce unproductive expenditures and scale up capital investments to support the objective of attaining higher economic growth,” states the report. According to the report, recurrent expenditures increased to 15.2 percent of the gross domestic product (GDP) in FY 2012-13, from 12.9 percent in FY 2008-09, capital expenditures decreased to 3.1 percent of the GDP in FY 2013 from 6.6 percent in FY 2009. On micro-economy, the ADB has said Nepal is expected to see better output in the current fiscal year. However, it said economic growth would not be as much as the government has predicted. The government has estimated 5.5 percent economic growth and 8 percent inflation. But the ADB said the realistic estimate of GDP growth and inflation is 4.5 percent and 10.5 percent, respectively.

Nepal Rastra Bank urges banks not to gamble with US dollar

THE Nepal Rastra Bank (NRB) has directed banks against engaging in hedging of the US dollar through non-deliverable forward (NDF) contracts with international banks. The NRB invited bankers to the central bank, requesting that they cease the NDF contract temporarily. The NDF is a hedging system under which international banks hedge the exchange rate of the US dollar in Nepali banks, potentially saving Nepali banks from losses due to exchange rate volatility. As the hedged dollar is not delivered physically and only deducted from the account of Nepali banks, it is called a ‘non-deliverable forward contract’. Due to the instability of the exchange rate in recent days, banks have taken NDF contracts as safeguards against exchange rate risks. While hedging, the dollar’s exchange rate is maintained against the Indian currency, with which the Nepali currency (NC) is pegged. Bankers said as the Nepali currency is not acceptable globally; they are taking reference of the dollar’s exchange rate with the IC. While hedging under the NDF, the international banks give certain exchange rates of the US dollar to Nepali banks. If the exchange rate changes in the market on the expiry date of hedging, the Nepali and international banks settle the difference by paying the variance amount to the establishment in deficit. For example, if the market exchange rate is IRs 65 per US dollar, international banks may offer IRs 65.20 per US dollar for hedging purposes, which is beneficial for the Nepali banks. On the day of settlement, if the exchange rate reaches IRs 65.80 per US dollar, then the foreign bank has to pay the Nepali bank the amount of difference (60 paisa) in the US dollar equivalency. If the rate is lower (eg IRs 64.90), Nepali banks have to pay (30 paisa) to the international bank that hedges. “Usually, we take the exchange rate set by the Reserve Bank of India (RBI) on the settlement day to settle the difference between the hedged rate and the market rate,” said an official of a leading commercial bank. Bankers said it is a necessary instrument for them as the government intervenes only three times a week. An NRB official said they have taken measures to study whether the NDF has been beneficial during current inconsistencies in the exchange rate. As the dollar’s exchange rate is fixed against IC for hedging, the NRB has been sensitive. The RBI has banned banks from engaging in NDF contracts in India. However, bankers said as the money is not delivered and the settlement is also made in US dollars, banning the NDF contract is not logical. Gyanendra Sharestha, chief of treasury department at the Himalayan Bank Limited (HBL) said that hedging opportunities could help banks to be bold on offering a good exchange rate to customers. “We can be confident in offering better exchange rates to migrant workers if there are hedging opportunities,” he said. “Otherwise, they go for hundi (an informal channel), and if we fail to offer a better exchange rate than hundi operators it is not good for the economy.” He said that daily intervention from the central bank could be beneficial, if not a complete solution, in times of market volatility. The Foreign Exchange Dealers’ Association of Nepal (FEDAN) has already asked the central bank not to ban the NDF. “We requested the NRB to allow us to continue NDF deals, as it is not harmful,” said Bijaya Bahadur Shrestha, president of FEDAN. According to bankers, US dollars worth Rs 15 billion have been hedged under the NDF currently. Usually, Nepali banks engage in NDF deals for an average period of two days to one week.

Nimbus distributes relief worth Rs 3.15m to poultry farmers

Nimbus - the producer of Shakti pallet -- on Tuesday distributed relief amount to a dozen poultry farmers, who faced huge loss after officials culled chickens in their farms following bird-flu outbreak. The company distributed relief worth Rs 3.15 million to farmers of Kirtipur, Kathmandu, Bhaktapur and Chitwan who have been using Shakti pellet feed for a minimum of six months. Speaking at a relief distribution program and announcement of additional fund for the relief fund, Chairman of Nimbus, Jagadish Agrawal, said they simply wanted to support the poultry industry which has been making significant contribution to national economy. With the Nimbus relief fund, the farmers have received full compensation for their poultry loss as the government has already paid half of the loss amount. Suresh Kumar Tamang, a farmer from Bhaktapur, said the relief prevented him from going bankrupt. He, however, expressed dissatisfaction over tax deduction of 25 percent from the relief amount. Nimbus had announced ´Nimbus Helping Hands´ - a relief fund worth Rs 7.5 million - in November last year as part of its corporate social responsibility. It has already distributed around Rs 3.5 million to the farmers. Meanwhile, Nimbus has added additional Rs 20 million to the fund. Ananda Bagaria, managing director of Nimbus, said the company contributed the amount by collecting 30 paisa from each kilogram of pellet feed sold by the company. “We contribute 15 paisa per kg and our dealers chip in with 15 paisa per kg,” said Bagaria. Total annual sales of Nimbus pellet feed stand at 70,000 tons.

KMI to introduce new carpet in Nepal

Kathmandu Mattress Industries (KMI) is a new type of carpet in December. According to the company, the new carpet is cooler in summer and warmer in winter. "The new carpet uses self-ventilation technology that ultimately upgrades the durability of the carpet," the company said in a statement. "We are manufacturing the carpet in Nepal with technical support of Dharmesh Textiles, India,” Ashok Chaudhary, managing director of, KMI said in the statement. "Initially, we will import carpets from India. After five months, we will manufacture carpets at our factory in Thankot which is currently under construction."

Offers galore at Subsiu CAN SofTech

Participating companies at CAN SofTech 2013, which kicks off on Wednesday, are attracting visitors with attractive offers and discounts. According to Computer Association of Nepal (CAN), the organizer of the event, most of the companies have come up with innovative schemes to lure visitors. Vice President Paramananda Jha is scheduled to inaugurate the four-day event amid a function, Subisu -- the title sponsor of the event -- has introduced an offer named ´Free Internet Pack´ under which customers get unlimited Internet at the speed of 256 kbps and Cable TV at just Rs 1,000 per month (exclusive of taxes). “If customers make advance payment for a year, they will get both Internet and Cable TV for additional three months as well as cable modem worth Rs 3,000 and a pen drive free of cost,” Rejina Acharya, senior media coordinator of the company, told Republica. Similarly, the company is offering Internet and Cable TV free for additional one month, along with 10 percent discount on cable modem and pen drive free of cost, to customers making advance payment for 6 months. It is also offering Huawei smartphones to three lucky customers through lucky draw. “Besides numerous offers from participating companies, visitors can learn about latest technical innovations as well as development in the field of information and communication industry,” Amrit Kumar Pant, general secretary of CAN, said. Midas Technologies is providing a gift voucher of its product Midas eClass worth Rs 300 to every visitor. According to the company, customers have to activate the service within mid October and can use it for 45 days after activation. Likewise, Siddhartha Bank is providing Rs 100 balance for customers opening account in its mobile wallet service named ´Siddhartha Hello Paisa Sewa´. To get the balance, customers, however, need to show the proof of their entrance ticket. Similarly, KRB Software will be offering Kohinoor, web-based accounting software, at a discounted rate of Rs 9,999. According to CAN, the SofTech will have 120 stalls from software solutions and internet service providers and telecom operators, among others. The companies will showcase various software related to education, cyber security, banking, information management, account management, anti-virus, security solutions, wireless solutions, printing solutions and power solutions. Entry fees for the event have been fixed at Rs 25 for students and Rs 50 for general visitors. Those buying tickets online get 20 percent discount. “Visitors, who bring cutting of SofTech´s print advertisement, will get free entry to SofTech until Friday,” Pant added.

Rupee slumps to new low of 109.03 against USD

Nepali rupee will plunge to record low of 109.33 against US dollar on Wednesday, as per the exchange rate published by Nepal Rastra Bank (NRB) on Tuesday evening. This means Nepali rupee will post overnight loss of Rs 2.97 against the greenback. US dollar was exchanged at Rs 106.06 on Tuesday. The local currency had slumped to previous low of 108.9 on August 29. Nepal Rastra Bank (NRB) depreciated local currency against the greenback after Indian currency, with which rupee is pegged, weakened to 67.20 per dollar on Tuesday from Monday´s 66.01. The Indian currency had hit lifetime low of 68.85 against US dollar on August 28. According to news reports, Indian traders are cautiously waiting for US jobs data due out on Friday that could affect expectations about when the Federal Reserve will start tapering its monetary stimulus. The prospect of less easy money from the United States has caused an exodus from many emerging markets over the past few months, but India has fared worse than most because of its precarious deficits, according to Reuters. Indian rupee has lost over 19.5 percent against the dollar since the slide began in early May. Though stronger US dollar has brought cheers to remittance receiving families and exporters, economists have cautioned that the country will have to face higher trade deficit and high inflation in coming days with the rising cost of imports, including raw materials for local industries.

Western Union, FonePay, eSewa Join Forced IN MOBILE BANKING

ONE of the leaders in global payment services, Western Union announced on Tuesday the launch of a mobile money transfer service in association with Nabil Bank and FonePay. FonePay, a leading mobile financial service and e-commerce company in Nepal, providing digital payment and money transfer solutions through mobile phones and internet, will be offering the service through eSewa, a subsidiary company of FonePay which offers customers to receive, pay and send money digitally through their mobile. The service was introduced formally amid a programme in the capital city by Patricia Z. Riingen (Western Union Senior Vice President for East and South Asia), Gregg Marshall (Vice President and Western Union’s Global head of mobile sales and Business Development), Anil Gyawali (Chief Executive Officer of Nabil Bank), Biswas Dhakal (President of F1soft International, the parent company of eSewa and FonePay), Asgar Ali (Chief Executive Officer of FonePay), and veteran actors Madan Krishna Shrestha and Hari Bansha Acharya, the brand ambassadors of Western Union in Nepal. With this, consumers in Nepal subscribing to an eSewa mobile wallet can now choose to receive money sent within minutes from Western Union agent locations and digital channels around the globe using their mobile phones, or through eSewa’s web interface www.esewa.com.np. Western Union’s new offering complements the services offered through its retail agent network of more than 5,600 locations in Nepal. “Western Union continues to expand its mobile footprint as part of our multi-product, multi-channel strategy,” said Patricia Z Riingen, “We are very pleased to expand mobile services to Nepal, and we remain committed to building our mobile network in strategic markets around the world.” Similarly, Dhakal said that the country which has a high dependency on remittance will be largely benefited through the service. “Remittance has evolved as the backbone of the country’s economy with its penetration accounting to around 23 percent in the national economy. Likewise, mobile phone has emerged as a 24 /7 friend of general Nepalese. The link up of mobile phone will definitely bring change in the overall remitting process,” Dhakal said. FonePay CEO Ali informed that the amount received as remit deposited in the bank through the service can make utility payments, shop online, purchase air, bus and movie tickets, airtime values, be transferred to other people and cashed in at remittance agents of eSewa spread across the country. “Apart from service charge of Western Union, there will be no other charges applicable while enjoying all these benefits,” Ali said. Consumers in Nepal subscribing to eSewa can now choose to receive money sent within minutes from Western Union agent locations and digital channels around the globe using their mobile phones

Citizens to issue dividend

Citizens Bank International is providing a 15 percent cash dividend to its shareholders. The decision was approved by Nepal Rastra Bank and the bank’s seventh annual general meeting. The bank, which has been serving its over 160,000 customers throughout the country from 34 branch offices, 36 branchless banking service points and 36 ATM terminals, has collected deposits of Rs 22.74 billion and issued loans amounting to Rs 17.95 billion in the fiscal year 2012-13. During the same period, the bank posted an operational profit of Rs 565.6 million and a net profit of Rs 413.2 million.

Prabhu offers free bangles

Prabhu Bikas Bank has come up with a special scheme aiming to strengthen its bond with customers. Under the scheme, which has been initiated coinciding with the Hindu festival of Teej, women making cash withdrawals through Prabhu Money Transfer and those opening Sangini Bachat Khata at the bank will be provided free bangles. The scheme will be valid from Sept 4-6.

Mega shares listed on Nepse

Shares of Mega Bank Nepal have been listed on the Nepal Stock Exchange (Nepse). The agreement to list its shares worth Rs 2.33 billion at Rs 100 per share cost price and paid-up price was signed by Anil Keshary Shah, chief executive officer of Mega Bank and general manager of Nepse Sitaram Thapaliya. Out of the total shares of 23.3 million, the general public and employees were apportioned a total of 6.99 million shares while the remaining 16.31 million shares were allocated to the promoter shareholders of the bank. The bank had made its initial public offering through Nabil Invest, Citizen Investment Trust, NIBL Capital Markets and NMB Capital by floating 6.99 million shares worth Rs 699 million which was oversubscribed 22-fold. These shares have been allocated to a total of 145,675 shareholders.

KBL, BoK sign agreement

Kumari Bank Limited (KBL) and the Bank of Kathmandu (BoK) have signed an agreement to provide remittance service of Kumari Remit, a premier online remit product of Kumari Bank. According to the agreement, BoK shall provide Kumari Remit service from its network of 50 branches. Uday K Upadhyay, acting chief executive officer of KBL, and Prabin Prakash Chettri, chief operating officer of the BoK, signed an agreement to extend remittance service throughout Nepal. KBL has been providing inward remittance from Qatar, UAE, Malaysia, US, Russia and Gulf and European countries.

SBI to issue bonus shares

A board meeting of Nepal SBI Bank has proposed issuing 12.5 bonus shares per 100 shares and 7.5 percent cash dividend. The proposal is subject to approval of Nepal Rastra Bank and the bank’s upcoming 20th AGM. Likewise, the bank’s board meeting on Sunday also approved the financial statement of the fiscal year 2012-13 in which the bank posted a net profit of Rs 771.47 million.

Five-star hotel planned on the western bank of Rara

A MODERN five-star hotel has been proposed in the western bank area of Rara Lake, Mugu. Rara Project Private Limited, the company that wants to invest in the hotel, has started a fresh environmental impact study to this effect. The company has proposed to build the hotel at Upper Milichour in Rara National Park (RNP) investing Rs 4 billion. On Sunday, Rara Project held a meeting regarding the environmental impact with the officials of RNP and the communities concerned. “We discussed what sorts of environment impacts could be faced after construction of the hotel inside RNP,” said Ramesh Bhatta, environmental consultant. Since there is no infrastructure to attract tourists, stakeholder committees here urged the company to build the hotel soon. In the last four years, the company has conducted two environmental impact assessment (EIA) studies in a bid to build the hotel in the Rara area, which is 2,990 m above sea level. Bhatta said that it was the final study and work on the hotel project would move further soon after necessary consultation with experts. A team of experts will submit an EIA report along with their suggestions to the Ministry of Forest and Soil Conservation seeking permission. The plan of the Rara Project shows that the hotel will be built on 200 hectares of land and will have a total of 10 modern buildings that will be three to four storeys. In the first phase, the company will build seven buildings and three will be built in the second phase. It is estimated that the hotel will offer employment opportunities to 300 individuals. Facilities such as a Scottish golf course, biking, jogging and hiking are anticipated beside the plan for bird watching and wildlife tours. The company has proposed to generate electricity using the water of Rara Lake for the use of the hotel. The proposal of the company has showed that it would provide a paragliding service in Lower Milichour and build a route for cycling from Talchha Airport to the hotel. It has also targeted to install a cable car from the hotel to Murma hilltop to attract tourists. Rara Project Private Limited, the company that wants to invest in the hotel, has started a fresh environmental impact study to this effect

One year on, govt fails to auction 3G, 4G services

THE government has failed to auction spectrum for third generation (3G) and fourth generation (4G) services based on the spectrum policy implemented last year. This has resulted in delays in making new services available in the market and left the telecom sector hard hit. In November 4 last year, the Ministry of Information and Communications (MoIC) had introduced the “Telecommunication Service Radio Frequency (Distribution and Pricing) Policy 2012”, fixing new pricing for frequencies and plan for effective distribution of the scarce resource. However, officials at the Nepal Telecommunications Authority (NTA) admit that the policy has become just a guideline to collect a spectrum fee rather than pushing for development in the sector. Two major telecom companies, Ncell and Nepal Telecom (NT), have been planning to roll out 4G service for the last three years and had sought spectrum required for the this technology. Based on the policy, the MoIC was supposed to form a committee to study the international practice, pricing and auctioning procedure, however this has not made any headway to date. The spectrum policy was devised with a focus on the auctioning of high value spectrum such as 3G and 4G, re-framing these resources, and carrying out regulatory monitoring by the MoIC and NTA on use of airwaves by the telecom companies. It had also talked about taking back the frequencies from companies that are using more than government set limit, and fixing frequency for emergency telecommunication management. The policy has not been implemented effectively due to the controversies regarding the appointment of NTA Chairman Digambar Jha and unified telecom licence, according to the Nepal Telecommunications Authority (NTA) which is responsible for implementing the policy. The authority only collected fees based on the policy from the telecom companies and assigned 2 Mhz spectrum to Smart Telecom that received the unified licence or Basic Telephone Service amid the controversy. Ananda Raj Khanal, acting chief of the NTA, said that they were focusing on frequency fee collection in the absence of a Chairman to make policy level decisions. “We are just waiting for the court’s decision regarding the NTA Chairman and the unified licence,” he added. Currently, a case against the appointment of NTA Chairman Digambar Jha is under consideration of the Supreme Court. Similarly, cases regarding the unified licence are also subjected in the court. The existing Telecommunications Act holds NTA Chairman as the key person on making any policy decisions. Based on the policy, the NTA collected around Rs 3 billion spectrum fees from telecom companies and this is considered as one of the best results of the policy impact. The amount collected includes: charges for 3G spectrum assigned to Ncell and NT, fees for additional and maximum spectrums being used by companies and limited mobility service. Previously, there was no specific provision regarding charges on 3G frequency. NTA officials admit that the policy has become just a guideline to collect a spectrum fee

1,522 tax evaders investigated

THE government has initiated yet another probe into value added tax (VAT) evasion by 1,522 taxpayers through the use of fake VAT bills. After the Inland Revenue Department (IRD) found the details submitted by a large number of taxpayers suspicious, it began the probe three weeks ago. IRD officials said after the details of tax, especially VAT, submitted by these taxpayers were found to be suspicious, the department decided to investigate the matter thoroughly. The government had announced recovering Rs 6.59 billion in unpaid taxes from 518 firms and companies after completing a one-and-a-half-year probe into the fake VAT bill scandal in 2012. Following the discovery of the largescale use of fake VAT bills, the department had subsequently probed similar incidents of tax embezzlement upon 216 taxpayers, the outcome of which has not been made public. “Our IT system has shown some incongruent and suspicious facts about these taxpayers,” said Rajendra Sharma, deputy director general at the IRD. He stated that all the revenue offices, including the Big Taxpayers Office, have been instructed to check the details submitted by these taxpayers who have been brought under the scanner, while the offices have begun to investigate the matter. Of the total suspected, more than 30 percent are big tax payers. Officials at the department said that if proved, this will be the largest tax embezzlement case in the country. “Economic activities in the country are growing and imports are soaring, however, VAT collection is still below expectations which is very alarming,” said an IRD official. “The probe this time will answer this question.” The IRD collected Rs 9.24 billion during the first month of the current fiscal year, 16 percent more than its collection during the same period in the previous fiscal year. Chudamani Devkota, IRD Director said if compared to the same period in the last fiscal year, the collection of income tax grew 38 percent, while the rental tax went up 30 percent. “But VAT collection grew by only 10 percent which is very nominal,” he said. He said that the suspected tax evaders were mostly from other districts outside the Kathmandu valley. According to the IRD, if tax evasion is established, the department will claim the unpaid amount along with interest while it may also freeze the bank accounts, transactions and import and export activities of the defaulters concerned. The Income Tax Act, VAT Act and Excise Act have provisioned such measures to recover evaded taxes.

Paddy fields in Tarai suffer from drought

AROUND 47,000 hectares of paddy fields have been abandoned this year, largely due to dry spells and a shortage of manpower in five Tarai districts. According to the Ministry of Agriculture Development statistics, transplantation has been completed at only 97 percent of the total paddy field capacity. Ministry statistics show that of the 1.531 million hectares of available paddy fields, transplantation was done on 1.484 million hectares as of August-end. Transplantation in five Tarai districts-Dhanusha, Mahottari, Sarlahi, Saptari and Siraha-remained below 90 percent this year. Last year, due to a severe drought, transplantation on only 94 percent of the fields was done. “Although, the entire country recorded torrential monsoon rains, a few districts in the eastern and central Tarai belt received no rainfall since July 30,” said Hem Raj Regmi, under-secretary at the ministry. “As a result, farmers were not able to plant crops on their fields.” According to statistics, the most affected district is Dhanusha with 16,250 hectares of paddy fields lying barren out of 65,000 hectares. Meanwhile, 8,540 hectares, 7,200 hectares, 6,955 hectares and 6,690 hectares have been abandoned in Siraha, Saptari, Mahottari and Sarlahi districts respectively due to insufficient rainfall. The ministry officials said paddy fields in these districts are parched, and 30-40 percent of the paddy planted on the fields is at risk of drying up due to lack of adequate water. As per the traditional schedule of paddy cultivation, transplantation is to be completed before August 15; however, it spills over to the end of August in a number of Tarai districts, where farmers harvest a third crop, like maize, in some areas. Regmi, who was among the visiting members to these affected districts, said that the dry spell was not the sole reason for farmers abandoning the land. “These districts have been suffering an acute shortage of manpower.” According to a government figure, 61,841 people went abroad from these five districts in 2012-among whom 98 percent were male migrants. The shortage of manpower has adverse effects on the cost of production for farmers. The Department of Agriculture research on cost of production and marketing margin of crops 2011-12 shows that the cost of paddy production per quintal is Rs 998.17 in Dhanusha. On an average, the cost of paddy production per hectare amounts to Rs 42,159 while a farmer’s gross income per hectare stands at Rs 61,835. This means, farmers make Rs 19,675 as a gross profit at farm gate prices. Although farm lands have shrunk significantly, government officials estimate that paddy output will not be affected as there are encouraging signs for good paddy harvest this season with plenty of rainfall and an improved variety of seeds in other parts of the district. Last year, droughts in many parts of the country caused a significant decline in paddy production, and its impact was visible in the country’s slowed economic growth. May proved to be an extraordinary month in terms of rainfall this year for rain-fed Nepali agriculture, with recorded levels of rainfall exceeding the normal. The ministry’s statistics show that May received 275 mm of rainfall, a 123.6 percent rise over the normal figure. Likewise, rainfall in June and July amounted to 295 mm and 440 mm respectively, which is 25 percent and 21 percent higher than normal. According to Agriculture Ministry, the most affected district is Dhanusha with 16,250 hectares of paddy fields lying barren out of 65,000 hectares

NRB to conduct Rs 5b reverse repo to absorb excess liquidity

NEPAL Rastra Bank (NRB) will be conducting a reverse repo worth Rs 5 billion on Wednesday to mop up excess liquidity in the market. This is the first reverse repo in three years. By conducting a reverse repo, the central bank absorbs excess cash from the banking system by selling treasury bills to banks and financial institutions (BFI). The last time the central bank conducted a reverse repo was on Sept 15, 2010. According to the central bank, BFIs have excess liquidity worth over Rs 60 billion which prompted the central bank to intervene through reverse repo. “We are issuing reverse repo to bring down the high liquidity level in BFIs and also to keep interest rates in check,” said NRB spokesperson Bhaskarmani Gnawali. Whenever BFIs have excess liquidity, they reduce the interest rate so that depositors will be discouraged from depositing money with them. However, the central bank is concerned about possible capital flight if BFIs lower interest rates. For this reason, the central bank has always been asking BFIs to keep interest rates relatively higher than in India. There has been a tendency among Nepalis to deposit money in Indian banks and insurance products offered by Indian insurance companies whenever interest rates go down here. Bankers said that intervention by the central bank had become necessary to mop up the increased liquidity in the banking sector. Chief executive officer of Himalayan Bank Ashoke Rana said that deposit collection had grown heavily contributing to the prevalence of excess liquidity. “None of the banks now has a credit-to-deposit ratio of more than 75 percent,” he added. As of August-end, commercial banks held deposits of Rs 1,019 billion while lending stood at Rs 757 billion, according to the Nepal Bankers’ Association. It means the credit-todeposit ratio is 74 percent. If the core capital is also added to the deposits to measure the ratio against lending, the ratio will be even lower, thus leading to greater liquidity. NRB has asked banks to keep the credit-to-deposit plus core capital ratio at a maximum of 80 percent. “It clearly indicates that banks have excess liquidity,” said Anal Raj Bhattarai, CEO of Commerz and Trust Bank Nepal. He added that deposits liquidity remained in excess due to low demand for loans compared to the increased level of deposits. Bankers said that due to the higher prevalence of liquidity, they have been lowering the interest rate. “The lending rate for some of the loan products has come down to single digits,” said Bhattarai.

Paragliding pilots told to get license within a week

Local administration has asked Nepali paragliding pilots, who were so far plying their trade without any license or accreditation, to get license by September 7. Chief District Officer of Kaski, Yadav Koirala, said the local administration has given local pilots a weeklong timeframe beginning Sunday to meet all requirements for operating paragliding flights. “We have tried to regulate the paragliding pilots working in the lake city, as it would be difficult for us to take action if any untoward incidents happen,” Koirala said. He further said the local administration asked pilots to get license within a week after none of them applied for the license on their own. The Aviation Sports Regulation 2013 makes it mandatory for local pilots to obtain a license from authorities concerned before operating paragliding flights. Paragliding entrepreneurs, however, said the regulation has yet to be implemented. Koirala said the local administration will take action against pilots if they are found operating flights without getting license after September 7. “We have not decided yet what action we will be taking. But we will go to the extent of revoking registration of paragliding companies that allow unlicensed pilots to operate flights,” he added. Basanta Raj Dawadi, general secretary of Nepal Air Sports Association (NAA), said delay in the implementation of the regulation has affected the paragliding business. “Nepali pilots were excited when they knew the government would provide license to them as per the Nepal Air Sports Regulation. But they were disappointed, as the government has been postponing the process to distribute license even eight months after the enforcement of the regulation,” he added. “The local authority told the pilots that they don´t have ´additional´ documents for the regulation.” Most of the Nepali pilots are operating paragliding flights based on their skills and expertise, while few of them has taken permission from the Civil Aviation Authority of Nepal (CAAN) after producing license issued by other countries. After the DAO Kaski asked paragliding pilots to get license within seven days, NAA has said it will put pressure on the Ministry of Culture, Tourism and Civil Aviation to start licensing process on a fast track mode. “The government is not issuing license, but the Kaski DAO is asking pilots to get license within seven days,” Dawadi said, adding that the decision will affect paragliding operators ahead of the peak tourist season. Pratap Babu Tiwari, chief of CAAN´s Pokhara Office, said the process to issue license to paragliding pilots has been delayed as the aviation service regulator is yet to make standards for the regulation.

KBL, BoK in remittance pact

Kumari Bank Limited (KBL) and Bank of Kathmandu (BOK) have signed an agreement to provide remittance service of Kumari Remit -- the remittance business of KBL. According to a press statement, as per the agreement, BoK will provide Kumari Remit service from its network of 50 branches. Uday K Upadhyay, acting CEO of KBL and Prabin Prakash Chettri, COO of BOK, signed an agreement. "KBL has been providing inward remittance from Qatar, UAE, Malaysia, USA, Russia and other Gulf and European countries," the statement said. The fund remitted by migrant workers through Kumari Remit from any part of the world can be received by their relatives in Nepal from a network of more than 1,000 agents of KBL along with branch network of BOK, according to the statement.

City Express starts remittance from Malaysia

City Express Money Transfer has signed an agreement with Unique Xchange of Malaysia to provide remittance service. According to a press statement issued on Monday, Nepalis in Malaysia can now send money at affordable price to Nepal. "The amount can be received through 2,500 authorized outlets across Nepal," the statement. City Express has already been providing remittance service from Japan, USA, Canada, Italy, Saudi Arabia and Qatar.

9th NADA Auto Show from Sept 11

The 9th NADA Auto Show 2013 will be organized at the Bhrikuti Mandap Exhibition Hall from September 11 to 15. The premier event on automobiles, spare parts and accessories is being organized jointly by Nepal Automobile Dealers´ Association (NADA) and Global Exposition and Management Services (GEMS). Shambhu Prasad Dahal, coordinator of the event, said the event is being organized with the theme ´Day Out for the Family´. “We have designed the exhibition in such a way that it offers a comfortable and fun-filled day out experience for family, group and individual visitors,” Dahal said at a press meet in Kathmandu on Monday. A total of 45 exhibitors, including local as well as international brands, will display their products and services in 100 stalls. According to NADA, automobile companies from Nepal, India, China, Korea, Japan, USA, Germany and Czech Republic, among others will participate in the event. “We will have eight brands of two-wheelers and 12 brands of four-wheelers,” said Dahal. Officials of NADA say the auto show this year will have different sections for two-wheelers, four-wheelers and commercial vehicles to cater to the need of segmented as well as general visitors. Along with this, the exhibitions will also have stalls to showcase new technological development, spare parts, lubricants, financial institutions, tires, generators, garage equipment, battery, and other accessories. “In order to make the exhibition more informative, service friendly and consumer oriented, there will be stalls of bank, after sale services providers, insurance companies, and auto magazines as well as newspapers,” Dahal added. “The event, like in the past, will bring together automobile dealers and potential buyers under one roof.” NADA is expecting more than 50,000 visitors during the five-day event. At the sidelines of the auto show, NADA is organizing different side events like children amusement, virtual show, traffic information, auto quiz and safety riding, among others. The organizers have fixed entry fees of Rs 100 for students and Rs 150 for general visitors.

SUDDHA PANI SHUT DOWN FOR SELLING CONTAMINATED WATER

AMARKET monitoring team of the Department of Commerce and Supply Management (DoCSM) shut down Suddha Pani situated in the Pepsicola town planning area on Monday. The department took action against the company after it failed to abide by the purity standards set by the government. According to the DoCSM, the water being supplied by Suddha Pani was found to contain mesophilic and coliform bacteria. The company has been extracting ground water and selling it in the market after purifying it. A DoCSM statement said that the company had been banned from extracting ground water and supplying it. The operation was carried out in the presence of Sushmita Shrestha, proprietor of Suddha Pani. “The company has been sealed as it failed the quality test carried out by the Department of Food Technology and Quality Controls,” said Narayan Prasad Bidari, director general at the DoCSM. “We will intensify such operations in the days to come.” The Kathmandu valley is heavily dependent on water supplied by the private sector. Against the average daily demand of 370 million l of water in the valley, the Kathmandu Upatyaka Khanepani Limited (KUKL) has been supplying just 140 million l. Private firms claim that they supply 90 million l of water by tanker daily. Likewise, they supply 120,000 units of 20-l water jars on a daily basis. “As per our findings, there are around 260 water extracting and distributing companies in Kathmandu. And most of them have not acquired operation permits. This has raised a serious question about the health of the general people,” said Prem Lal Maharjan, president of the National Consumers Forum. He added that the government should intensify such checks on water extraction and distribution as drinking water is among the basic needs of the general people. Maharjan added that the DoCSM should also look into the price factor of the water being distributed in the capital city. “A one-litre bottle of drinking water is sold for around Rs 25 while the production cost is just around Rs 10. As for the 20-l jar, the production cost is Rs 25- Rs 30,” said Maharjan, adding that the government should realize this and ask private water bottling firms to reduce prices. Apart from the water plant, the monitoring team checked Family Store in Pepsicola town planning area and seven other stores—New Namaste Mart, Baneshwor; Ganga Khadya Bhandar, Battisputali; Aaman Kirana Pasal, Bhimsengola and Banepali Pasal, Apna Cold Store and Best Buy Shopping Centre in Old Baneshwor. They were caught for not displaying price lists and signboards, not renewing their business licences and selling dateexpired products. The DoCSM said in a statement that all the date-expired products found in the stores were destroyed and the owners were warned not to repeat the offence in the future.

Laxmi in Bhaktapur, Dhangadhi

KATHMANDU: Laxmi Bank on Monday opened branches in Bhaktapur and Dhangadhi. With this, the bank’s network across the nation has reached 34. A statement issued by the bank said that the new branches were a great fit to its overall brand and business strategy of reaching out to the emerging urban and semi-urban markets and empowering customers with products and services delivered through a channel of their choice: branch, internet or mobile phone.

2,000 Ford cars sold in Nepal

Go Ford has sold 2,000 units of Ford cars in Nepal since it bagged Ford dealership for Nepal on October 31, 2010. Issuing a statement, the company said the market share of Ford as a brand and various Ford vehicles in different segments has been growing at a good speed in Nepali market. “The chief reason behind the popularity of Ford vehicles is their reliability and affordable pricing,” the company said, adding that low cost of ownership, world class technology and cheaper maintenance cost have made Ford a dependable brand. GO Ford has introduced eight Ford models in Nepal.

Revenue from land registration going up

REVENUE collection from land registration has exceeded the target by 27. 57 percent to Rs 5.35 billion in the last fiscal year in a clear reflection of recovery in the sector, according to the Department of Land Reform and Management. The target was Rs 4.19 billion. The government had missed the target in the fiscal years 2011-12 and 2010-11 when recession was deepening. Both the government officials and realty traders have reported smooth growth in realty

transactions lately. Kamal Prasad Timalsina, under secretary at the Department of Land Reform and Management, said land transactions both in the Valley and in Tarai have grown at the same pace. He, however, said land transactions in Kathmandu is highly related to collaterals for banks compared to those in other regions. Realty traders said sales of low cost land and houses have gone up both in and outside the Kathmandu valley. Min Man Shrestha, general secretary of Nepal Land Housing Developers’ Association, said the sales of land having price tag of Rs 400,000-Rs 500,000 per aana have picked up lately. “Disbursement of bank loans to individuals constructing house or purchasing apartments have also helped the sector recover to some extent,” said Shrestha. Another property developer Bhesh Raj Lohani, managing director of Green Hill City, shares Shrestha’s thought. “Sales of low cost houses and land have gone up in Kathmandu Valley,” he said. “Both sales and price of lands and properties have gone up in the emerging towns outside the Kathmandu Valley.” The Kathmandu valley is still the largest contributor to the government’s revenue from the land and property registration. In the fiscal year 2012-13, the revenue collection from the valley stood at Rs 2.09 billion against the target of Rs 1.75 billion, according to the Department of Land Reform and Management. In fact, the revenue collection from four out of five land revenue offices (LROs) in the valley has exceeded the target in the last fiscal year. LROs in Dillibazzar, Kalanki, Chabhil and Lalitpur exceeded the target except the one from Bhaktapur failed to meet the target, according to the department’s statistics. The realty traders now claim a growing optimism in the sector going forward. Lohani expect realty transactions to peak after the Dashain and Tihar festivals, although it would take some time for the prices to go up. “It should now recover after four years of recession. The interest rate has been decreasing and remittance has grown which will fuel transactions in the realty sector,” said Lohani. Shrestha, however, said high interest rate for home loans and even higher rate for developers is pegging back the sector’s early recovery. But based on the current trend, the Department of Land Reforms and Management has expected the revenue collection of around Rs 6 billion this year, much better than its initial target of Rs 4.5 billion.

Turkish Airlines inaugurates Istanbul-Kathmandu service

TURKISH Airlines conducted its maiden flight from Istanbul to Kathmandu on Monday. The carrier said it would be operating four weekly flights between the two

cities. Flights will depart from Istanbul on Tuesday, Thursday, Friday and Sunday and arrive at Tribhuvan International Airport (TIA) at 7:15 am. They will depart from Kathmandu on Monday, Wednesday, Friday and Saturday. The Kathmandu-Istanbul flight will be the longest non-stop commercial flight (7 hours) from Nepal to Europe. The carrier said that introductory round trip fares from Istanbul to Kathmandu start at 406 euros (including taxes and fees). After Austrian Airlines discontinued its service to Nepal, there were no scheduled direct flights between Kathmandu and Europe. Currently, Dutch airline ArkeFly operates charter service between Amsterdam and Kathmandu. “We expect that the direct connectivity will enhance bilateral, cultural and economic relations between the two countries,” said Sezgin Saglam, senior vice-president, marketing and sales, of Turkish Airlines. The carrier currently serves 223 destinations in 104 countries and is the world’s fourth biggest carrier in terms of destinations. The carrier said that it would be coordinating with the Nepal Tourism Board to promote Nepal. Director general of the Civil Aviation Authority of Nepal Ratish Chandra Lal Suman said that the Istanbul connection would be an important landmark for the country’s tourism at a time when Nepal’s national flag carrier Nepal Airlines has been unable to connect Europe. Similarly, NTB spokesperson Aditya Baral said that the direct scheduled flight to Europe has opened lots of avenues to increase promotion of Nepal as a tourist destination. The carrier has targeted 95 percent transit passengers for Europe and the United States from Nepal. Nepal and Turkey signed an air service agreement (ASA) in September 2010. Ratish Chandra Lal Suman, Director General of Civil Aviation Authority of Nepal (2nd from right) and Sezgin Saglam, senior vice-president, Marketing and Sales of Turkish Airlines exchange gifts marking the carrier’s maiden flight to Nepal in Kathmandu on Monday. POST PHOTO

‘Spiralling debt may see fuel cut’

NEPAL Oil Corporation (NOC) has warned that it could face cuts from its sole supplier Indian Oil Corporation (IOC) because of its ballooning debt. The state-owned oil monopoly said it owes Rs 1.60 billion to IOC due to the loss-making fuel subsidy policy. As per the new tariff sent by IOC on Sunday, NOC has projected its monthly loss at Rs 1.62 billion for September. The corporation is reportedly considering to reduce its imports in line with the losses it is currently incurring. IOC reviews the export prices of petrol and diesel fortnightly and of other products such as kerosene, aviation fuel and LPG on a monthly basis. Sources at NOC said that the government, which controls fuel prices, has not shown any seriousness to the problem that could spark possible petroleum shortage if it was not addressed immediately. Based on Sunday’s tariff, NOC faces a loss of Rs 628 on a cylinder of liquefied petroleum gas (LPG), which would accumulate to Rs 880 million loss from LPG business alone. Its loss on a litre of diesel has jumped to Rs 13.90, or the corporation will incur an accumulated loss of Rs 945 million in the diesel business. “As losses have jumped beyond our capacity, we have asked the government to bailout the corporation to ensure smooth petroleum supply,” said Shiva Prasad Pudasaini, spokesperson for NOC. The government has committed Rs 4 billion bailout money for the NOC. Janmajay Regmi, chief of Public Enterprises Coordination Committee at the Finance Ministry, said that the ministry had held talks with the Employee Provident Fund and the Citizens Investment Trust to arrange loans for the NOC. “Due to the absence of finance secretary, we haven’t dispatched an official letter to both the government institutions,” Regmi said, adding that the government is aware of the situation. Finance Secretary Shanta Raj Subedi is currently attending the 6th SAARC Finance Ministers Meeting in Colombo, Sri Lanka. The NOC, which has total outstanding debts of Rs 28.50 billion to the government and financial institutions, has been caught in a pincer of a freefalling rupee and rising crude prices. Brent crude oil steadied around $114 on Monday after a week of gains, as a military strike against Syria looked less imminent and worries over possible Middle East supply disruptions receded, Reuters reported. It fell as low as $112.20 a barrel, down $1.81, but then rallied to around $114.45 on Monday.

IBN set to okay Nigerian company’s proposal for $800m cement factory

THE Investment Board of Nepal (IBN) is all set to approve the investment proposal of the Dangote Group to establish a cement factory in Nepal. It will be the first proposal to be approved by the IBN since its establishment two and a half years ago. Eight months ago, the Dangote Group, one of Nigeria’s most diversified business conglomerates, had approached the IBN with an investment proposal of US$ 800 million to set up a cement plant in Nepalð The IBN has completed all the preliminary work including a study of the proposal of the group and has concluded that it is a serious investor. The IBN is now prepared to allow the foreign company to expand its investment project in Nepal. “The next board meeting of the IBN will give the formal approval to the group which will pave the way for the company to initiate the project implementation,” said Radhesh Pant, chief executive officer (CEO) of the IBN. An IBN board meeting on Feb 13 had accepted the company’s foreign direct investment (FDI) proposal and had also formed a committee led by Pant to assess the proposal. The committee comprised Dhurba Lal Rajbansi, director general of the Department of Industry, and Sarabjeet Prasad Mahato, director general of the Department of Mines and Geology (DoMG)ð Pant said the committee submitted its report to the board a month ago by approving the project proposal, and its final endorsement will be done by a board meeting. Mukunda Poudel, joint secretary at the IBN, said Chairman of the Cabinet Khil Raj Regmi had also approved the proposal in his capacity as IBN chairman a week ago. “Following the endorsement of the proposal by the chairman, the proposal will now be forwarded to the IBN board meeting,” he said. “I have placed the project’s proposal as the first item on the agenda.” He said the board meeting would be held next week if things go as planned. Dangote Group President and Chief Executive Aliko Dangote is ranked by Forbes magazine as the world’s 76th richest person. Headquartered in Lagos, Nigeria, the group’s Dangote Cement is the largest cement producer in Africa. With a net worth of US$ 12 billion, Dangote is also the richest person in Nigeria. Most of his net worth lies in publicly traded Dangote Cement, which operates in 14 African countries, according to Forbes magazine. IB CEO Pant said the IBN decided to move ahead with Dangote’s proposal as the country needs large cement factories for large infrastructure projects, and that the board found Dangote to be a genuine investor which can benefit the country in several ways. Meanwhile, the company is seeking to procure a licence for mines in the country for procuring limestone, which is the major raw material for cement and clinker production. “As per the government law, the company has to either get a licence for new mines or purchase existing ones from private companies,” said Pant, adding the Board had been helping the Nigerian investor in its process to procure a licence for a mine. The IBN said that by the time the company’s proposal is approved by its board meeting, it will have obtained a licence. “Once the proposal is endorsed by the board meeting, Dangote will have to register its company at the Company Registrar’s Office and begin implementing the project. As per the company’s preliminary planning, the group has expressed interest in setting up a plant in Surkhet district in western Nepal. Though scores of investors from across the globe have been in frequent touch with the IBN expressing their desire to establish investment projects in Nepal, Dangote is the first one to approach it formally. Though the IBN has been holding negotiations with three foreign hydropower developers, GMR Energy and Sutlej Jal Vidyut Nigam from India and SN Power from Norway, Dangote’s proposal is the only investment commitment under FDI that the IBN has received since its establishment. “Once approved, it will be the first fast-tracked project from the IBN,” added Pant.

Ghar Aangan Banking begins

KATHMANDU: The Bank of Kathmandu has introduced Ghar Aangan Banking Sewa in a bid to provide efficient and effective services to unbanked populations and lower income groups. Under the plan, it will undertake various activities to encourage banking habits among these groups. Branchless banking will be initially provided from POT (point of transaction) machines which have been installed at 20 new centres across the country. The BoK has launched its branchless banking service from 20 new centres at locations across the country, the company said in a statement.

Bajaj Dusavatar plan launched

KATHMANDU: HH Bajaj, the sole authorised distributor of Bajaj motorcycles in Nepal, has introduced its Dashain and Tihar scheme entitled Bajaj Dusavatar. The offer will start from September and will be active throughout the country. Dusavatar, as the name suggests, revolves around the figure 10. There will be 10 weekly bumper prize of Rs 1 million each. The scheme will also mark 10 years of leadership of Bajaj in the country’s two-wheeler market. Under the scheme, every customer buying any Bajaj motorcycle will receive a sure-shot instant cash prize ranging from Rs 5,000 up to Rs 100,000 apart from the weekly lucky draw prize of Rs 1 million.

Demand for milk products soars as Teej approaches

DEMAND for dairy products has soared in the Kathmandu valley on the eve of the Hindu festival of Teej. According to entrepreneurs, demand for milk and its products has increased 25-30 percent, and is likely to jump two- to three-fold as the festival nears. The arrival of Teej, one of the most widely celebrated Hindu festivals, has given a big boost to demand for milk and products like ghee, curd, butter, cheese, paneer and ice cream. Some dairies have doubled their production to meet the market demand. While the state dairy product supplier Dairy Development Corporation (DDC) has a strong dominance in the supply of milk, private firms like Nepal Dairy and Snow Fun, among others, have a significant hold in other dairy products. It is estimated that DDC meets less than 40 percent of the valley’s requirement of dairy products. “We have started witnessing a big growth in demand for dairy products,” said Siya Ram Prasad Singh, general manager of DDC. “We are finding it difficult to fulfil demand for some of our products.” According to Singh, DDC supplies around 135,000 l of milk, 2,000 kg of ghee, 6,000 l of curd, 400-500 kg of paneer and 500 kg of cheese daily. “As demand has increased significantly, DDC will find it hard to supply ghee as per the market’s demand,” he said. Similarly, Bishwo Ram Khadka, president of the Dairy Producers Association, said that the arrival of the festive period had given a boost to the country’s dairy market. “An increase in demand for dairy products is normal during the festive period. This time too, the market has swelled significantly,” said Khadka. Apart from the festive demand, the consumption pattern of dairy products has been rising constantly over the past few years. “The dairy market is estimated to be growing around 10 percent annually,” said Khadka. According to him, increasing urbanization and awareness among the people about the benefits of dairy products have played a key role in the growth of the country’s dairy market. “The inflow of remittance has brought economic prosperity to the people living in remote villages. Due to this, consumption of dairy products in villages has gone up,” Khadka said. While producers of dairy products have already reported a shortage of some products, the supply situation is likely to become more difficult in the next few days as they are finding it difficult to increase output. “The supply of milk from farmers has been decreasing constantly since the past few months. This is why we are finding it hard to increase production, despite having significant market demand,” said Singh. However, he stressed that there wouldn’t be a shortage of items like milk as DDC had purchased adequate amounts of powdered milk and has been importing milk from India. Meanwhile, Khadka added that the market might face a shortage as consumption gœs up in villages during this period, and farmers will have less to sell to dairy firms.

Debt recovery hindered by inadequate collateral

THE Debt Recovery Tribunal (DRT) has said that inadequate collateral and missing assets of the guarantor has made it more difficult to recover defaulted loans. According to the DRT, more than half of the cases of loan defaults it is looking into fall into this category. “Inadequate collateral and missing assets of the loan guarantor are aspects beyond our control,” said DRT Chairman Gokul Prasad Burlakoti at the stakeholders’ meeting here on Saturday. “This has made it difficult to implement the ruling that defaulted loans be recovered from such assets.” Since the establishment of the DRT a decade ago, 2,700 cases have been registered with it, and it has given its verdict on 2,599 cases. The amount to be recovered as per the DRT’s verdict stands at Rs 42.14 billion, but only Rs 16.73 billion has been recovered so far. The DRT maintains an office in Kathmandu only. Burlakoti stressed that banks and financial institutions would have to carry out valuation of the collateral properly to ensure recovery of loans. He said that private sector banks and financial institutions have also been increasingly coming to the DRT with default cases in recent days. “In the past, only governmentowned banks would come to us,” he added. The DRT was formed to recover bad loans particularly of government-owned banks as such loans had created a crisis among them a decade ago. The government had to conduct a financial sector reform programme to rescue them by taking loans from the World Bank. President of the Purbanchal Chamber of Commerce and Industry Kishor Pradhan said that the reasons why entrepreneurs have failed to repay loans should also be considered if they should default. He added that it would be better for banks and financial institutions to resort to blacklisting defaulters only after analyzing the reasons. Judges of the Appellate Court and district courts, lawyers, entrepreneurs and bankers attended the stakeholders meeting.