Flower expo to be held from November 25

THE Agribusiness Promotion and Marketing Development Directorate (APMDD) in association with the Floriculture Association Nepal (FAN) will be holding the Seventh National Nursery Flower Competition Trade Fair from Nov 25 in Jawalakhel, Lalitpur. The three-day fair aims to promote the flower business in the country. “The trade-cum-competition is being organized in order to foster competition among private flower producers and to increase the standard of production procedures and product development,” said Hari Bahadur Tiwari, programme director at the APMDD. The event will provide an open platform for floriculturists to compete with four different varieties of flowers including intermediate, reflex, spider and miniature. The 28 stalls at the fair will be showcasing a multitude of flower types such as seasonal flowers, decorative plants, cut flowers and dry flowers. Similarly, compost fertilizers, seeds, tools, packaging materials and pesticides will be displayed at the fair. The programme has been a yearly attraction for the general public, floriculture enthusiasts and particularly the private sector. “There has been a steady increase in the number of people visiting every year,” said Rojlin Maharjan, project manager at the APMDD. More than 21,000 visitors are expected to attend the fair. The programme organizers said that much of the progress in floriculture has been made possible by the active role played by the private sector. As per the organizers, the government has also focused on promoting the sector with the aim of reducing poverty. Lila Ram Paudel, director general at the Department of Agriculture, said the trade fair was being held as per the new Flower Promotion Policy 2012. According to FAN, there are 636 flower nurseries operating in 36 districts in the country. Flowers are grown on around 120 hectares of land, and more than 40,000 families benefit from this sector. FAN’s President Lok Nath Gaire said that 20,000 people were employed in the sector with 5,000 persons being directly employed in it. In fiscal 2012- 13, Nepal imported flowers worth Rs 33.1 million while exports amounted to Rs 29.5 million

Etihad sets stage for $50 billion of jet deals from Gulf

ETIHAD Airways is close to placing an order that could kick off a $50 billion jet-buying spree from the Gulf as the region’s carriers flex their muscles in an industry hit by weak margins and high fuel prices. Taking advantage of deep pockets and a geographically strategic position between East and West, Gulf airlines are expanding rapidly and diverting long-haul traffic from airlines in Europe, the United States and parts of Asia. Abu Dhabi-based airline Etihad is expected to buy dozens of Bœing Co jets, including the revamped 777X mini-jumbo and a repeat order for its 787 Dreamliner, sources familiar with the matter said on Monday. The deal could be worth $18 billion at list prices and comes as Etihad prepares to celebrate the 10th anniversary of its maiden flight on November 12, highlighting the Middle East’s emergence as a fastgrowing global travel hub. If confirmed, Etihad’s order could pre-empt a widely expected blockbuster deal for 100 or more 777X jets from rival Emirates Airline, which has said it may announce a large order when it hosts the Dubai Airshow next month. The deals are still under negotiation and could change in size and timing, said the sources, who spoke on condition of anonymity because they are not authorized to speak publicly. Bœing’s European rival, Airbus, is also competing for the business. Together with an order from Germany’s Lufthansa in September, the latest business is likely to ramp up competition between planemakers by allowing Bœing formally to launch the new version of its long-range 777X twin-engine jetliner. Airbus has punctured Bœing’s traditional dominance of the market for big twin-engine jets with its new A350-1000 and scored a historic breakthrough in Japan this month. Two people familiar with the matter said that Etihad is looking to buy 25 to 30 of the revamped 777X. And in a vote of confidence for Bœing’s Dreamliner, which has suffered a series of technical problems, Etihad is also considering increasing its order for the lightweight 787 Dreamliner by up to 30 aircraft, the sources said. Etihad, which has 41 Dreamliners on order, declined comment. Bœing said interest was “high” for the revamped 406-seat 777X but declined to comment on negotiations and has yet to make a formal decision on whether it will build the new aircraft. Dubai’s home carrier, Emirates, has said it is considering what many in the industry expect to be a huge order for Bœing 777X jets at the Dubai Airshow to be held November 17-21. Emirates President Tim Clark was quoted last month as saying that much work needed to be done to finalize commercial terms and that the airline would not go ahead with any deal until it was ready, but industry sources say that speculation is rife that the deal could be worth as much as $32 billion. “The much bigger news would be a non-launch (of the 777X in Dubai), or a launch with tepid numbers,” said Richard Aboulafia, analyst at Virginiabased Teal Group, referring to expectations of a formal launch of the 777X at the Dubai show. “Since Bœing has been carefully designing the 777X to meet their (Emirates Airline) needs, anything less than a 70-100 aircraft firm order would raise questions. And a non-order would be a disaster for Bœing.” Bœing has been carefully timing the launch of the 777X, saying it will start building only when the design is right and airlines have placed sufficient orders. But airlines want the jet to arrive by the end of the decade to replace aging 777s, and Emirates in particular has been clamoring for it for more than a year. In contrast to the years-long wait for the 777X, Airbus is highlighting the availability and reliability of the A330. It also will try to land orders for its new A350 and its A380 superjumbo. Emirates is the biggest customer for both, and has said it wants to buy more. Airbus’ nearest competitor the 777X is the 350-seat Airbus A350-1000, the largest member of the newest family being developed by the European company. Airbus said on Monday that flight trials for the A350 are going well and that it will stick to its target of delivering the first of the lightweight jets in the second half of 2014. State-backed Gulf airlines are famous for making a splash with big orders, often at the Dubai Airshow. In 2011, Emirates placed an $18 billion order at the biannual show, the largest single order in Bœing’s history. Qatar Airways, another big Bœing customer with an order of 30 Dreamliners, has expressed interest in the 777X but is viewed as the most cautious of the Gulf’s big three. Budget carrier flydubai, which is fast expanding its routes, also is expected to place a $5 billion order for 50 narrowbody jets at the Dubai show and is looking both at Bœing’s 737 MAX and the Airbus A320neo. Saudi Arabian Airways and Kuwait Airways, which put on hold plans to buy 25 new aircraft from Airbus in September, will also look to finalize a deal in Dubai next month. Taking advantage of deep pockets and a strategic position between East and West, Gulf airlines are expanding rapidly and diverting long-haul traffic from airlines in Europe, the US and parts of Asia

Employees Provident Fund asks government to issue special bonds

THE Employees Provident Fund (EPF) has asked the government to issue special bonds for contractual savings institutions so that it can increase investment in government securities. The EPF and the Citizen Investment Trust (CIT) are the two contractual savings institutions operating in the country. Currently, the EPF’s investment in government securities amounts to 9.83 percent of its total investment. It wants to increase this figure to 15 percent. The EPF held resources valued at Rs 145.68 billion as of the end of fiscal 2012-13. “We have sent a formal letter to the Finance Ministry requesting it to issue special types of bonds for contractual savings institutions,” said Krishna Prasad Acharya, administrator of the EPF. “We have assured it that the EPF is ready to purchase Rs 5 billion worth of such bonds.” Currently, the government has been issuing foreign employment bonds as special bonds. The EPF’s request coincides with government plans to issue more bonds than treasury bills. The government has recently decided to issue bonds worth Rs 30 billion out of the total internal loans of Rs 44 billion it wants to raise this year. Acharya said that the EPF’s request was meant to make available long-term funds to the government to spend on development activities. “As bonds are also the safest investment, our members will feel secure,” he added. The EPF has 483,000 members. Acharya added that they had “informally” asked the government to fix the interest rate of such bonds at the inflation level. Meanwhile, the CIT said that it had not made any such request to the government but it was ready to invest in bonds. CIT Executive Director Rishiram Gautam said that they had been telling the government it also wanted to invest in local currency bonds likely to be issued by international institutions like the International Finance Corporation if the interest rate was in the range of 8-9 percent. Currently, the EPF’s investment in government securities amounts to 9.83pc of its total investment. It wants to increase the figure to 15pc

New Cooperatives Act being prepared to tweak sector

THE National Cooperative Development Board (NCDB), in coordination with the Ministry of Cooperatives and Poverty Alleviation (MoCPA), has been drafting a new cooperative act in a bid to fine-tune the sector. After the act is enforced, it is expected to regulate the cooperative sector more effectively and prevent malpractices by the operators, particularly of savings and credit cooperatives. According to the NCDB, the new act will decentralise authority to the concerned agencies of cooperatives which is now held solely by the registrar of the Department of Cooperatives. The draft is being prepared by a seven-member committee headed by the NCDB co-chairman Saroj Kumar Sharma. The other members of the committee are the chairman of the National Cooperatives Association and representatives of the MoCPA and Nepal Rastra Bank. Sharma said the new act has envisioned appointing district cooperatives registrars who would look after the sector at the local level. According to him, the Cooperatives Department will act as the central authority which will operate under the MoCPA. “Apart from other provisions, the act will also specify the role of the MoCPA in governing the sector,” he said. “It has also planned to give the authority to declare cooperatives that do not perform well crisisridden to the ministry.” Similarly, the central associations and district associations of cooperatives will be authorised to monitor the concerned cooperatives. They will also provide training to the executives of individual cooperatives. Currently, the sector is being regulated under the Cooperatives Act 1992. Sharma said the act had failed to regulate the sector properly as the number of cooperatives has soared in the past two decades. “The number of cooperatives has exploded from 800 then to over 27,000 now,” he said. The necessity for a new act was also felt as the cooperatives sector possesses huge deposits but has a lax regulatory mechanism. As a result, the executives of a number of savings and credit cooperatives in particular have been found to have engaged in malpractices putting the money of the general public at risk. Citing weak provisions in the current Cooperatives Act with regard to controlling malpractices, a high-level committee formed last year had also recommended bringing a new act to govern the sector. The new act is expected to control the mushrooming of savings and credit cooperatives. At present, there are more than 11,000 savings and credit cooperatives. According to the records of the Cooperatives Department, there is a significant growth in the number of such cooperatives every year. According to Sharma, the new act has also planned to promote cooperatives related to the production sector that can create a large number of jobs. The multitudes of cooperatives in the country hold deposits amounting to over Rs 150 billion which is equivalent to 15 percent of the public deposits at A, B and C class banks and financial institutions. Savings and credit cooperatives have the bulk of these deposits. According to the board, the new act has also targeted insuring deposits of up to Rs 200,000 besides insuring loans. The act it is expected to regulate the sector more effectively and prevent malpractices by the operators, mainly of savings and credit cooperatives

Organic pesticide production starts in Kavre

As organic farming gets increasingly popular in Kavre, the District Agriculture Development Office (DADO) has started the production of organic pesticide. The DADO with the help of Integrated Pest Management (IPM) Program has set up a laboratory for the production of organic pesticide. The office has also formed a group of peasants in Kushadevi VDC and trained three farmers for the purpose. According to the DADO, the farmers will be involved in the production, packaging, leveling and selling of organic pesticide. Madhusudan Poudel, a senior crop conservation officer, informed that the organic pesticide to control pests such as white grubs has been already developed in the lab. He also informed that the lab would start manufacturing fungicides such as trichoderma and insecticides to save organic crops from moth larvae. “The organic pesticides produced in Kushadevi can address the demand of insecticides for organic farming in Kavrepalanchok as well as IPM farms,” said Poudel. “We can export the surplus production to neighboring districts, too,” added Poudel, under whose guidance the farmers have been producing the organic insecticide. DADO has also planning to provide financial assistance to set up a organic seed resource center in the district to encourage the farmers toward the organic farming and the production of the organic pesticides. According to DADO, organic farming is carried out in over 300 hectares of land in Kavrepalanchok. “We have been promoting organic farming in the district as a campaign. We are able to attract farmers who had not used chemical fertilizer and pesticide in the past to organic farming,” Sahadeve Prasad Humagain, a senior Agriculture Development Officer, informed. Humagain also believed that they would attract rest of the peasants toward organic farming through IPM Program. “Organic farming, in which there will be no use of chemical fertilizers and chemical insecticides, will help reduce the acidity of soil and would make positive impact on the environment, too” claimed Humagain. With the aim of promoting organic farming, the Organic Agriculture Association of Nepal, an organization under the guardianship of head of the DADO, has also been formed. Given the health benefits, the consumers are gradually attracted toward the organic production. Some of the organic farms - Organic Himalayan Firm, Patlegagun Organic Farm and Ashapuri Farms - in the district have also been exporting their products to the international market.

Govt enforces new criteria for hotels

The government has enforced a new set of criteria for star hotels and tourist standard resorts. It has also introduced a new category -- deluxe five-star. The new criteria was published in the Gazette on Monday. As per the notice published in the Gazette, the government has enforced the criteria by making amendments to the Hotel, Lodge, Restaurant, Bar and Tour Operator Regulation 1981. As per the new criteria, all star hotels need to increase rooms by 20 percent. Similarly, they should have facilities like Wi-Fi and CCTV and should have LCD/LED TV in all rooms. New hotels should follow the criteria immediately, while existing hotels have five years to meet the new criteria. As per the notice, hotels that fail to meet the criteria within the given timeframe will be dropped to lower category. Hoteliers have welcomed the new standardization order. They say the new standards will help to raise the quality of hotels in Nepal in line with the international standard. They have also hailed the government decision to introduce deluxe five-star category, saying that it has opened the doors for investment in deluxe five-star hotels. Also existing five start hotels can upgrade themselves into deluxe five-star category by adding new facilities, they said. Madhav Om Shrestha, executive director of the Hotel Association of Nepal (HAN), said the amendments to the regulation were made in consultation with the association. He also told Republica that HAN will help member hotels to implement the standardization order within the given timeframe. According to HAN officials, five-star hotels like Hyatt Regency Kathmandu, Hotel Radisson Kathmandu Hotel and Soaltee Crown Plaza already have the necessary infrastructures to upgrade themselves into the category of deluxe five-star. Other five-star hotels are also making preparations to upgrade to the deluxe five-star category, they said. As per the notice published in the Gazette, deluxe five-star hotels should have a minimum of 200 rooms, more than five food and beverage outlets with touchscreen or remote Personal Digital Assistance (PDA), banquets having at least 6,000 square feet, spa and sauna bath, and vehicle scanning equipment and baggage scanner, among others. “The hotels that meet the criteria have to apply at the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) for upgradation. The government will then initiate necessary procedure for upgrading,” Shrestha added. Prabin Bahadur Pandey, executive director of Shangri-la Hotel, said the new standardization order helps existing five-star hotels to separate into different category on the basis of infrastructures and facilities they have. “We will upgrade ourselves into the deluxe five-star category. We have the required space to add the facility as specified in the standardization order,” he added.

The Financial Action Task Force (FATF) preparing to remove Nepal from watch list

The Financial Action Task Force (FATF) - the international watch-dog against money laundering - is preparing to remove Nepal from its watch list within few months, thanks to the government´s last minute effort to endorse the required regulation on money laundering. The FATF established in 1989 sets the standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the international financial system. The cabinet had recently approved two regulations on Mutual Legal Assistance, and Listing and Delisting Individuals, Groups and Organizations recently as international requirement. It saved the country from getting backlisted by the FATF. “To our great relief, the FATF is working to remove Nepal from the watch list as we have fulfilled its requirement by approving the two necessary regulations before its meeting in Paris,” Shanta Raj Subedi, secretary at the Ministry of Finance (MoF), told Republica. “The FATF officials are satisfied with the progress that we have made in taking necessary legal preparation to combat money laundering.” According to Subedi, a team from FATF will pay on-site visit to Nepal in December to take account of Nepal´s preparation in implementing the legal provisions against money laundering. Nepal will be permanently deleted from the watch list if the team gives report to FATF about the effective implementation status of anti-money laundering laws. "We have averted the risk of being blacklisted by the FATF. Now, we have challenge of implementing the laws on anti-money laundering," added Subedi. The plenary meeting of FATF held in Paris on October 16-18 could have blacklisted Nepal had the country failed to approve the crucial regulations ahead of the meeting. Nepal had made high-level political commitment to cooperate with Asia Pacific Group of FATF to fight money laundering by formulating necessary laws. Nepal has enacted Mutual Legal Assistance, and Extradition Ordinance, Confiscation, Freezing and Control of Assets Act and made second amendment to the Money Laundering Act. Despite this, the FATF had demanded that Nepal make additional commitment to fight money laundering by making legal provisions on adequately criminalizing money laundering and terrorist financing, establishing and implementing adequate procedures to identify and freeze terrorists´ assets, and implementing adequate procedures for the confiscation of funds related to money laundering, among others. Though other deficiencies were fulfilled, Nepal had not approved regulations on Mutual Legal Assistance Regulations, and Listing and Delisting of terrorists until the first week of October.

8,051 pass KLT exam

A total of 8,051 youths have passed the Korean Language Test (KLT) examination held two weeks ago as part of the process to select Nepalis for jobs under South Korea´s Employment Permits System (EPS). The EPS-Nepal Office released the results on Monday. A total of 43,772 youths had appeared for the two-day KLT examination held on October 5 and 6. Prem Luitel, an officer at EPS-Nepal, told Republica that 7,336 male and 715 female job aspirants have passed the language test. Out of those who passed the examination, 4,389 have shown interest to work in manufacturing sector while the remaining 3,662 have preferred agriculture sector. Luitel said those securing more than 70 percent marks will be given top priority for the Korean job. “Now we will conduct skill test for the best performers from November 28 to December 3 before recommending them for high priority in job placement,” ha dded. The government and Human Resource Department (HRD) of South Korea had conducted the 70-minute test at 17 centers of Kathmandu and Lalitpur districts. Of the around 15,000 youths who passed the languages test in 2011, around 4,800 are still to get job opportunities in South Korea. Luitel said around 3,000 of them had sat in the examination this year as well. South Korea has been sourcing workers from 15 different countries, including Nepal, under EPS introduced in 2004. Around 19,000 Nepalis have left for Korea under EPS so far. Nepal had signed labor agreement with South Korea in 2007 to send Nepalis to work in five different sectors -- manufacturing, fishery, agriculture, service and construction in Asia´s fourth largest economy.

NRNA finally registered at MoFA

Non-Resident Nepali Association (NRNA) has finally been registered at the Ministry of Foreign Affairs (MoFA) after a decade of its establishment. The general assembly of NRNA held in Kathmandu on Saturday had decided to amend its statute to comply with the definition of non-resident Nepalis offered by Non-Resident Nepali Act 2008. Talking to this daily, Foreign Secretary Arjun Bahadur Thapa said the registration process completed on Sunday and a certificate of registration will be handed over to NRNA at its sixth global conference to be inaugurated by President Ram Baran Yadav on Monday. NRNA representatives had applied for registration with an amended copy of the NRNA statute. With the amendment, one can claim an NRN status only after staying abroad for two years. After the Act was promulgated by parliament in 2008, NRNs had lobbied for giving Nepalis an NRN status if they stayed abroad for only six months. The issue of registration had been pending for the last five years as the government had refused to register NRNA going against the Act. The definition of NRNs was the main bone of contention between the government and NRNs. Registration of the association is the main agenda of candidates vying for NRNA presidency. The registration will pave the way for institutionalization of the association. Failing to unanimously elect its president, the NRNA general assembly has decided to elect its president only for a two-year term. Five NRNs were in the fray for NRNA presidency, but three of them -- Ram Pratap Thapa, Hitman Gurung, and Rameshwor Shah-- withdrew their candidacy. Shesh Ghale and Tenzi Sherpa will now be contending for the post. The election for the post of NRNA president and other office bearers kicked off on late Sunday evening. Around 1,300 voters will cast their votes to elect new NRNA leadership for the next two years. Bhawan Bhatta, Bhawani Prasad Oli, Bishwa Adarsha Pandit, Narendra Bahadur Bhat, Pemba Melbu Sherpa, Prahlad KC, T B Karki are in the fray for the post of vice president. Kumar Panta, Rajan Kandel will be vying for the post of general secretary and Ramchandra Kharel, Ranju Thapa and Shyam Bahadur Tamang will compete for the post of secretary. Arun Bahadur Shrestha and Badri KC wil vie for the post of treasurer.

Election anxiety might affect room occupancy, say hoteliers

Though most of the five-star hotels in the capital have received more than 90 percent of bookings for November and December, they fear political scenario during the Constituent Assembly (CA) election might affect actual occupancy during the months. The election is scheduled for November 19. “It´s good to note that most of the rooms at five-start hotels have been booked. However, there are chances that the bookings might be cancelled if political situation turned unfavorable,” Kausal Kumar Singh, director-sales and marketing at The Everest Hotel, said. “At present, we can only hope that the election is held in a peaceful manner.” Singh further said the hotel has received good booking from MICE segment for December even though the month is regarded as off-season for tourism business. Sagar Chandra Bantawa Rai, revenue manager of Soaltee Crowne Plaza, echoed Singh and said the market is slowly contracting as arrivals from Europe have started declining. “As Nepal is holding CA election in November, many tourists are in a wait and watch mood,” Rai said, adding, “Arrivals from Europe is already declining due to economic slowdown in many European countries.” Though Europe is regarded as the primary market for Nepali five-star hotels, hoteliers say the trend is slowly shifting toward Chinese market. They say loss from the European segment is being compensated by the rise in arrivals from China in recent years. Soaltee Crowne Plaza has received 95 percent bookings for the month of November -- 10 percent higher than that of October, according to Rai. “Occupancy during these months is always higher as this period is the peak season for tourism business in Nepal,” Rai said, adding that the booking for December stands at 85 percent. Hotel Yak and Yeti - another five-start hotel in the town - has received 90 percent booking for November even though renovation works are undergoing at the hotel. “Most of the available rooms have been booking for November and December. However, whether or not the booking will translate into occupancy will depend on the situation during election,” Dinesh Benjankar, reservation manager of Hotel Yak and Yeti, told Republica. According to Hotel Association of Nepal (HAN), there are eight five-star hotels in the country.

Chocoberry now in Pokhara

Chocoberry, which introduced flavored frozen yoghurt for the first time in Nepal, has opened its first franchise outlet in Chipledhunga, Pokhara. The company has its main outlet at Civil Mall, Kathmandu. Frozen yoghurt is similar to ice-cream, but is made using yoghurt instead of cream. Like ice-cream, it is available in different flavors. Shameendra Khadka, one of the proprietors of Chocoberry, said Sakil Gurung has taken franchise of Chocoberry in Pokhara. “As per the agreement, Gurung will be allowed to use Chocoberry´s brand name and serve frozen yogurts as directed by Chocoberry," said Khadka. Chocoberry will provide Gurung with all the technical, operational as well as material support in return. The franchise outlet as Pokhara is currently serving frozen yoghurt in two flavors. Customers can add 20 different types of toppings like seasonal fresh fruits and dry fruits, chocolate chips, nuts and Oreo cookies crumbles, among others in the frozen yogurt as per their choice. Chocoberry is currently available in more than 30 flavors on rotational basis at its outlet at Civil Mall. "We will soon make these flavors available in Pokhara too," said Khadka. At Chocoberry, customers will have to take yogurts from the machines and toppings themselves. "Our staffs will weigh the dessert and calculate the price accordingly," said Khadka. Chocoberry charges Rs 1.25 for a gram of frozen yoghurt.

Relief fund for migrant workers will be set up within a week

AUSTRALIA-BASED Non-Resident Nepali Shesh Ghale was elected new president of the Non-Resident Nepali Association (NRNA) on Sunday. Ghale, 55, is the CEO and Executive Director of MIT Groups Holdings, which is also investing in Nepal in a five star hotel project. The Post talked to Ghale on his plans, investment promotion and possibilities in Nepal, and the first-ever election that took place to elect an NRNA chief. Excerpts What are your plans as the new NRANA president? This is an opportunity for me. Now, my first priority will be preparing an action plan based on my commitments in my election manifesto. The plan will have short-, mid- and long-term plans to bring investment in Nepal in potential areas. As I believe in team work, I will be visiting many countries to collect advice from NRNs living there. The action plan will be realistic and visionary for the next executive committee to follow. With the registration of the NRNA on Sunday, our association has received legal recognition. We will also be focusing on building our own office in Nepal. The registration has also made it easy for us to purchase assets. We also have some funds. It seems the newly elected executive committee will have the chance to carry out many financial activities. For the first time, an NRNA president was elected through competitive electoral process, breaking away from the tradition of electing the head through consensus. How do you plan to take ahead the NRN movement? I have underlined the spirit of unity and inclusiveness in my manifesto. In the past, the NRNA president used to be selected through consensus, and we tried to do so this time as well. But we had to go for an election after Tenzi Sherpa did not withdraw his nomination even after other three candidates of the president supported me. However, this is a democratic practice and election was held under a fair process. This is not only my victory, but also my rival Tenzi Sherpa’s, as the focus of all of us is on the unity among Nepali diaspora. It is said that the NRNA has failed to walk the talk when it comes to bringing investment to Nepal. What is your evaluation of the last 10 years of the NRNA? Our effort regarding the investment in Nepal is a continuous process. In the last 10 years, NRNs have invested Rs 30 billion in different sectors in Nepal, as per the Federation of Nepalese Chambers of Commerce and Industry. This indicates that we can do more in the coming days. We have started off with baby steps. I do not see huge investment coming to Nepal soon. But when it comes to knowledge and skill transfer will help the country. What are the hurdles in attracting investment in Nepal? There are some key hurdles like the lack of investment friendly policies, delay in amendment to the antiquated Foreign Investment and Technology Transfer Act 1992, and the attitude of bureaucrats towards the NRNs. The NRNA is a bridge to attracting foreign direct investment. In my view, joint venture with foreign companies is the best way to bring in investment rather than direct involvement of foreign investors. Local partners can help international partners in dealing with local matters in the primary level. The NRNA, as a social organization, can only explain and promote Nepal’s investment potential in the international market. Besides, we are also working on making collective investment in the mother country. There are reports about exploitation of Nepali migrant workers. What will the NRNA do for them? Our new executive committee will very soon come up with a decision to establish an NRNA fund dedicated for the welfare of Nepali migrant workers. The fund will be utilised for providing immediate relief to Nepali workers facing difficulties abroad. Hopefully, we will reach a conclusion on the matter within a week. However, the size of the fund, the sources and the operation modality will be decided later. We are much aware that Nepalis are facing problems in international labour destinations. Many take the NRNA as a savoir of Nepalis facing problems, but it is misconception. We can network with international communities like International Labour Organisation regarding Nepali migrant worker issues. It is said that you had strong backing from the UCPN-Maoist and the Nepali Congress for the election.What do you say on this? More or less, the result of the election is the outcome of my visit to 25 countries in last six months. I had self confidence as I received goodwill from many NRNs wherever I reached. Since there were so many participants, around 1,000, they may have their own political belief and affiliation. I am not associated with any political parties. The NRNA should remain above the politics. Since I was fighting for the NRNA presidency, I had sought support from all sectors. My first priority will be preparing an action plan, which will have short-, mid- and long-term plans to bring investment in Nepal

Remittance income being spent on unproductive purchases

NEPAL has not been able to benefit from the remittance sent home by Nepalis working abroad as most of this money is being spent on basic needs, particularly food, and fast moving consumer goods. Speakers at the sixth global convention of nonresident Nepalis (NRNs) said that there had been massive migration from the country in the last two decades, but the country had not obtained any concrete gains from it. “It has been a big concern today how this remittance is being spent,” said Gopal Prasad Kafle, deputy governor of Nepal Rastra Bank, speaking at a session entitled “Looking at the Potential and Emerging Trend of Investment in Nepal”. Remittance accounts for one-fourth of the country’s Gross Domestic Product (GDP) or two-thirds of the balance of payments. The money sent back by Nepali migrant workers abroad in the fiscal year 2012-13 amounted to Rs 434 billion. “This money is not being mobilised in the productive sector, and it is a really worrying factor,” said Kafle. According to Kafle, the central bank is planning to issue foreign employment bonds worth Rs 1 billion this year. Issuance of bonds will help secure the money earned by migrant workers, and prevent it from being spent haphazardly. It will also help the government direct the collected funds to different productive sectors, Kafle said. “This can turn a very small amount of equity into a large cash flow,” he added. He also urged the NRN community to help the government channelize remittance through banking channels, stating that a huge amount of remittance still comes to Nepal through the informal sector. For example, Korea is a big remittance generating country, but its contribution to the total remittance inflow is merely 0.02 percent. Likewise, Kafle said that remittance from Australia and the UK was very nominal. Addressing the same meeting, Kush Kumar Joshi, former president of the Federation of Nepalese Chambers of Commerce and Industry , said that the country receives Rs 40 billion in remittance from migrant workers every month, but it’s a wonder where all the money gœs. “Remittance is not visible in the productive sector,” said Joshi, who is also the chairman of Nepal Purbhadhar Bikas Company. The company is building a Rs 35-billion express tunnel highway connecting Kathmandu with the southern plains by mobilising domestic resources. Foreign Minister Madhav Prasad Ghimire (centre) hands over the registration certificate of NRNA to newly elected NRNA President Shesh Ghale (left) on Monday. POST PHOTO 6TH NRN GLOBAL CONFERENCE

It’s time to do something for Nepal: Prez

PRESIDENT Dr Ram Baran Yadav on Monday urged the Non-Resident Nepali (NRN) community to show the sense of responsibility towards the motherland through socially responsible investment. Inaugurating the 6th NRN Global Conference here on Monday, President Yadav expressed pleasure on how skills, knowledge and investment of NRNs are transforming the nation building process. “The number of Nepali migrants has grown by leaps and bounds. In positive aspect, intellectual property, and skill and knowledge transfer have also expanded,” he said. “Now, it’s time to do something for Nepal.” The President said the government is fully committed to ensure the sense of security and rule of law to attract investment in Nepal, stating successful Constituent Assembly elections in November will pave the way for a better and prosperous Nepal. Madhav Prasad Ghimire, minister for Home and Foreign Affairs, said the government recognises the contribution of NRNs on social and economic fronts. “Hence, the government wants to establish NRNs as a strong player for economic diplomacy.” The government has planned various facilities for the NRN community so that their contribution to the nation building process would strengthen further in the upcoming days, Ghimire said. NRNA Founder Patron Upendra Mahato underscored the need for according equal priority to economic development and politics. He urged the NRNs to come back to Nepal and contribute to nation building. Outgoing NRNA President Jiba Lamichhane said the NRN movement in the coming days would be more intensified. “We expect the upcoming constitution will address our demand for continuation of citizenship.” Meanwhile, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Suraj Vaidya said there are 45 companies in Nepal under NRNs’ investment, adding NRNs have mobilised Rs 30 billion in Nepal. Vaidya urged the government to form a separate ministry to look after NRN and foreign employment affairs. “As the country is in need of investment, we (the FNCCI) and NRNs need to move forward collectively, with a common goal.”

Nepse halts stock trading of eight companies

NEPAL Stock Exchange (Nepse) has halted share trading of eight listed companies after they failed to clear the licence renewal fee on time. The companies are Bottlers Nepal (Tarai), National Hydropower, Kanchan Development Bank, Multipurpose Finance, Everest Insurance, Himalayan Finance, Shreeram Sugar Mills and Nepal Film Development Company. The deadline for renewing the licence for these companies ended in mid- October. Himalyan Finance has been declared crisis-ridden by the Nepal Rastra Bank, while the Insurance Board recently took over Everest Insurance for not holding transactions for a long time. Similarly, Shreeram Sugar Mills and Nepal Film Development Company have failed to carry out their stocks trading until now. Nepse Spokesperson Sambhu Pant said these companies repeatedly ignored Nepse’s directive. “Although we notified them to clear their annual fees by mid-October, the companies did not pay heed,” said Pant, adding the action is one of Nepse’s official procedures to compel such companies to clear their annual fees. Companies with a paid-up capital of Rs 10 million have to pay an annual fee of Rs 15,000, while those with Rs 50 million capital have to pay Rs 25,000 annually. For companies with paid-up capital of Rs 50-100 million, the charge has been fixed at Rs 35,000 and those with more than Rs 100 million capital have to pay Rs 50,000 in service charge every year. According to Nepse, these companies will be allowed to carry out their stock transaction only after clearing their dues.

FESTIVE BUYING LIFTS AUTO SALES

DASHAIN came as a joyous period for automobile sellers, with the festival contributing to a significant rise in sales. The overall automobile market grew by more than 15 percent during the festive period, according to Nepal Automobile Dealers’ Association (NADA), the apex body of the country’s automobile sellers. Unlike in the past, when promotion schemes used to be the sole reason behind increased sales, traders said there were numerous other factors helping the industry this year. “This Dashain turned fruitful for us. The overall market witnessed a growth of over 15 percent, which is very positive,” said Gopi Neupane, general secretary of NADA. “The automobile market has been doing well for the last two years. This year’s performance shows the market is regaining strength and is getting stable.” Neupane said easy financing facilities offered by banks and financial institutions and a stable political situation of the country played a crucial role in helping the sector regain momentum. “Apart from easy availability, interest rate on auto loans has gone down. This has motivated people to purchase automobiles,” said Neupane. BFIs are offering interest rates starting from around 8 percent and are also coming up with schemes like fixed interest rate for a certain time to woo those willing to buy vehicles. Besides, road expansion and messy mass transportation system also helped the automobile market. “New tracks have opened in some 73 districts and we see sales increasing even in remote places,” Neupane said. Sunil Chhetri, deputy general manager at Go Automobiles, the sole authorised distributor of Ford fourwheelers from Nepal, said availability of a wide range of products at wide price range is among the reasons behind the growth. “People are interested in hatchbacks and entry-level SUVs. This shows affordability factor too has enticed buyers,” said Chhetri, adding most of the buyers this festive season were middle-income earners from diversified sectors like banking and corporate, among others. Entry-level hatchbacks come with a starting price of around Rs 1.2 million in the domestic market. While the four-wheeler segment witnessed a handsome growth in city areas, two-wheelers continued to increase penetration in semi-urban and rural parts of the country. “The inflow of remittance and emergence of two-wheelers as the easiest means of mobility helped sales of motorcycles and scooters increase,” said Neupane. Dinesh Ratna Bajracharya, manager at Nepal General Marketing (NGM), the authorised importer of Hero two-wheelers, however, said the market could have been much better. “Besides Kathmandu and Pokhara, license issuance has stopped in all places across the country due to the unavailability of infrastructure as per the latest license issuance rule. And, finance companies do not invest in two-wheelers until the prospective buyer produces a driving license. This played a bit of spoilsport,” said Bajracharya. FESTIVE BUYING LIFTS AUTO SALES

Repair work on coffer dam begins

REPAIR work on the coffer dam of Rani, Jamara and Kulriya Irrigation Project, which was damaged by heavy flooding in the Karnali River in June, has begun. Due to high water level in the river, the work was suspended for four months. “The repair work has been started after the water level decreased,” said Suresh Kumar Sharma, senior division engineer at the project. Sharma said the river will be diverted through a temporary mud dam. He expected the work on diverting the river would take around a month. “Then, the construction work on the main intake will begin,” he said. The project had planned to complete the work on the intake in September, but the work was delayed after the flood damaged the coffer dam. “Now it will require seven more months to complete the main intake,’ said Sharma, adding it would not cause any delay in the overall project completion. “Since the work on the main intake and the canal will be carried out simultaneously, the overall project completion date will not change,” said Sharma. The project said it suffered losses amounting to around Rs 10 million due to the floods. The Kailali-based irrigation project is one of the largest farmermanaged irrigation systems in Nepal. It is being managed and operated by farmer communities. According to locals, Rani Kulo was built in 1896, Jamara in 1950 and Kulariya in1972. This system is a cluster of three independent “kulos”, or branch canal systems, each having separate water intake from the Karnali River. The irrigation project involves plan to build the main intake below the bridge of Karnali river with a 9 km main canal extending from the intake. Also, new auxiliary canals with a total length of 14 km will be built. The project will also rebuild farmer-managed canals, install mechanisms to protect the irrigated area and improve conditions of the village agriculture road. According to the current plan, the project will be operational in two phases. In the first phase, the irrigation facility will be improved, and in the second phase, other VDCs in the upper part of the east-west highway of Kailali district will have access to irrigation facilities after a new canal is built through the Balchaur VDC. This irrigation project will irrigate 5,300, 4,100 and 4,900 hectares of land through Rani, Kulriya and Jamara canals, respectively. In addition, 6,000 hectares of additional land will be irrigated along the eastwest highway. The project has investments from the government and the World Bank. The investment from the World Bank will be utilised for river control, improvement of roads and building auxiliary canals, while the government will pay for building the main intake and the canal. Since much of Nepal’s irrigation depends on monsoon rains, farmers hope the project will provide irrigation facilities year round. Besides increasing agriculture production, the project will also help attract tourists who come to visit the Karnali bridge, Sharma said. The project had planned to complete the work on the intake in Sept, but the work was delayed after the flood damaged the coffer dam

THE National Tea and Coffee Development Board (NTCDB) seeks Rs 25 million to set up tea auction house

THE National Tea and Coffee Development Board (NTCDB) has sought Rs 25 million from the government to build the proposed tea auction house in Jhapa. In a proposal submitted recently to the Ministry of Agriculture Development, NTCDB has said the sought amount will cover costs for land acquisition, infrastructure development and tea testing laboratories along with other logistic support. NTCDB Executive Director Raman Prasad Pathak said they would start preliminary work on the proposed auction house by the end of this fiscal year. “We have started looking for land plot to initiate building the infrastructure,” he said. The board said a committee has been planned for smooth functioning of the tea auction house which will be the first of its kind in the country. Pathak said the committee would incorporate tea producers, entrepreneurs, NTCDB’s representatives and licensed brokers. “The committee will look after the entire process of fixing the price depending on the available quantity and quality. It will work in coordination with the tea auction house concerned in India.” A tea auction house provides a system in which potential buyers (including foreigners) are able to fix the price through the bidding process. Tea producers will be required to sell their products only through the auction house after its establishment. The system is expected to benefit tea producers by preventing middlemen from taking undue advantage during sales. Using auction houses to sell agriculture products is a popular practice in the international market. The government has also planned the auction house in the Nepal Trade Integration Strategy. In the budget for fiscal 2013-14, the government has talked about establishing an auction house by sharing costs with the private sector. Meanwhile, the board has started providing training to farmers on organic tea farming. According to Pathak, they have started providing training to farmers from three places in southern Jhapa. “Under the programme, farmers are informed about how to minimise the use of chemicals, besides encouraging them to develop organic fertilisers through cow farming and earthworm cultivation,” Pathak said. Saying that the government has announced providing 50 percent subsidy on organic fertiliser production, Pathak demanded the government provide necessary cash support to compensate the loss that farmers face for a certain time when they shift to organic farming. Ilam, Jhapa, Panchthar, Dhankuta and Terhathum are the major tea producing districts. According to NTCDB, more farmers in Dolkha, Lalitpur, Kaski and some districts in the Mid- and Far-Western regions are entering tea production. Tea is grown on 18,149 hectares of land, while 9,941 small farmers are engaged in tea production.

Govt begins preparing Financial Sector Development Strategy

THE Ministry of Finance (MoF) has initiated devising the Financial Sector Development Strategy as per the budgetary provision. The budget for the current fiscal year has talked about formulating such a strategy to achieve speedy economic growth, quality development of bank and financial institutions (BFIs), strengthening of the capital market and all aspects of the insurance sector by maintaining financial stability, increasing financial access and financial sector development. The same has also been included in the monetary policy issued by the Nepal Rastra Bank (NRB). After holding talks with stakeholders, the ministry has recommended the finance minister to form two committees to prepare the strategy. “A high-level committee headed by the finance minister will monitor and supervise the preparation process, while a working committee headed by the NRB deputy governor will prepare the draft,” said Krishna Devkota, joint secretary at the ministry. He said a final decision could come within a week after holding another round of discussion with the stakeholders. “The strategy will incorporate BFIs, insurance companies, the capital market, microfinance companies and contractual saving institutions like Employees Provident Fund,” Devkota said. Despite a significant growth in the financial sector over the last two decades, there is no comprehensive policy for different subsectors. Banking and insurance sectors, despite enjoying an unprecedented growth, are facing problems related to governance putting public money at risk. There are also concerns about the domination of banks and financial institutions in the capital market, with less representation of manufacturing- and productionrelated industries, and virtually no development of the bond market. Devkota said they expect to complete the strategy document within mid-May. NRB Deputy Governor Gopal Prasad Kafle said the move to prepare the strategy was taken as there is not holistic strategy for the sector. “The strategy with a specific action plan will help develop the sector,” he said. Currently, the High-level Financial Sector Coordination Committee headed by the finance minister takes decision on issues related to the sector. Kafle said the new strategy would help in self-regulating the sector as it would incorporate the actions to be taken.

Tunnel redesign will cost less than previous estimation: Panel

CHANGING the design of the Upper Tamakoshi Hydropower Project’s tunnel would cost less than what was previously estimated, a panel of experts looking at the matter has said. The German team represented by Wynfrith Riemer, a geologist, and Helmut Bock, a rock mechanic, concluded that the redesign would cost Rs 940 million, against Rs 1.5 billion estimated by Norwegian consultant SINTEF. The Norwegian firm had estimated that an additi

onal penstock pipe would cost Rs 1 billion and rerouting of the tunnel would cost Rs 500 million. After a rock stress measurement four months ago, SINTEF had concluded the tunnel had to be realigned in order to prevent hydraulic fracturing and uncontrollable loss of water. It had highlighted the risk of water overflowing from the tunnel due to weak soil condition. However, the German panel of experts not only reduced the projected cost, but also the completion time. As per the new recommendation, the project will be completed seven months behind the schedule. The Norwegian firm had estimated that the project would be delayed by 15 months. “The recommendation is appropriate for the country,” said officiating project Chief Bigyan Prasad Shrestha. “The Nepal Electricity Authority (NEA) board should decide whether to implement this recommendation.” He said the study was carried out from October 4-14. The project was held in abeyance, citing weak geological conditions in the remaining 3.5 km section of the 8- km main tunnel. The panel’s recommendations include reducing the slope of the 3.5 km section of the 5-km tunnel from Bhainse audit to Penstock audit by 0.3 percent instead of previously suggested 8.3 percent and inserting steel lining in the 450-m section of the 500-m section that has already been dug in the Penstock audit of the main tunnel. The earlier study had recommended steel lining in more places. The new study has also recommended building 280 m of the remaining 420-m surge shaft, which will remain as upper Penstock shaft. Instead of the surge shaft, the consultants have recommended building a 920-m surge tunnel. The German team also recommended upgrading the 3-km road track to reach the new audit portal and digging a new 400-m audit tunnel. Shrestha said 52 percent work on the project has been completed.