Draft anti-money laundering regulation prepared

THE government has prepared a draft anti-money laundering regulation which contains the procedures for listing and delisting terrorist organizations and persons. It plans to introduce two sets of regulations to implement the act—one fully focused on listing and delisting and another related to other issues. As per the proposed regulation on listing and delisting of terrorists, the Home Ministry will ask the cabinet to classify a domestic organization or individual as terrorist after an investigation. “In the case of international terrorist organizations, the Foreign Ministry will send a list of names to the Home Ministry for necessary procedures before listing them as terrorists,” said Tek Prasad Dhungana, joint secretary at the Law Ministry. In the case of foreign terrorists, the government will decided what to do after receiving a request from a foreign country or the United Nations. The proposed regulation has also talked about how to remove somebody from the terrorist list. “As it is not a conviction based list, the act has given those designated as terrorists or their accomplices a chance to prove their innocence and get delisted,” said Dhungana. Those who get involved in transactions with terrorists unknowingly can also get a clean chit and get delisted by providing adequate evidence. As the act says that all the properties of somebody accused of being a terrorist will be frozen, the regulation states that minimum living expenses will be provided to somebody put in the list. “Living expenses include food, clothes, family expenses including electricity and water bills and school and college fees of the children and necessary resources for legal defence,” said Dhungana. He added that such expenses would be met from their own assets. The regulation has also proposed monitoring the list and freezing and releasing bank accounts and properties regularly. The ministry has also been discussing another regulation to implement the Anti- Money Laundering Act. Similarly, the Law Ministry has prepared a draft regulation to implement the Mutual Legal Assistance Act. As per the proposed regulation, the Foreign Ministry will forward the request received from a foreign country for legal assistance to the Law Ministry which will provide help in this regard. “The government will help the foreign country by collecting necessary evidence and it will bear the costs involved, said Dhungana. He added that the government would not demand the service charge in advance. According to the proposed regulation, they can make payment later as per the costs. The draft regulation also states that a foreign country seeking legal assistance will have to send the request in the Nepali language. “Nepal can accept the request and the existing documents in English too, but they will have to pay for the translation service,” said Dhungana. The regulation has talked about keeping a roster of translators.

LIC offers flexible new insurance scheme

LIFE Insurance Corporation (LIC) on Sunday launched ‘Jeevan Saral’, a flexible life insurance scheme. The new offer enables the policy holders to bear up with a high risk easily apart from facilitating them with more liquidity and high return on their insured amount, said the company. LIC CEO PR Mishra said the scheme was launched as part of the company’s effort to introduce the innovative product. Under the scheme, the LIC customers could receive insurance coverage upto 250 times the monthly premium incase of death of the customers before maturity. The additional facilities that the policy holders can receive include loyalty bonus and refund of the entire premium amount except the first year’s payment after maturity. According to the LIC, the product offers more flexibility in insurance payment including any time maturity facility to its customers. “The policy holders can surrender at any time after five years in which they will receive the full payment for the period,” said Mishra. “Besides, they can also withdraw their insured amount partially any time before the actual maturity date.” Similarly, the policy holders are also allowed to surrender (give up getting insured) after two years of receiving the policy. Based on the insured amount, they are also allowed to take loan up to 90 percent of the surrendered amount after two years. People between 16- 60 of age will be eligible for the scheme and the maximum age of maturity has been fixed at 65 years of the policy holders. “Customers can easily calculate their bonus amount under Jeevan Saral scheme,” said Rajesh Kumar Chaudhary, LIC assistant general manager. Stressing on the need for a flexible insurance policy like Jeevan Saral to address people’s changing lifestyle, Insurance Boarad Chairman Fatta Bahadur KC said: “Through such clientfriendly policy, the insurance company can promote even the micro insurance in the country.”

Huge investments pouring into transportation sector

THE trend of investing in the public transportation sector has been rising due to activities like strikes and bandas becoming rarer. Enthused by the brighter situation, Mahalaxmi Bus Services has spent Rs 50 million on 10 new deluxe buses. In the last one and a half years, around 100 new buses have been added to the fleet operating on long and short routes. “The buses will come into operation within Dashain,” said Bhavish Kumar Shrestha, operator of Mahalaxmi Bus Services. “The buses will be operating in Biratnagar, Dharan, Kakkarbhitta, Kathmandu, Pokhara, Mahendranagar and Dhankuta.” The latest investment was made by Shrestha, Rajan Kadel and Pushpa Dhan Shakya under the management of the Arihanta Group. According to Shrestha, the buses will be operating under the name of Kosheli Yatayat. To make the travelling experience of the passengers comfortable and enjoyable, the company will provide services like Wi-Fi internet, CCTV camera and TV with superior sound system, among other facilities. Likewise, consumers can make ticket purchases by email too. According to Shrestha, around Rs 450 million has been poured into the sector in one and a half years. Population growth, urbanization and increasing roadway networks have contributed to attracting investments in mass transportation, he added. “Until a few years ago, there were around five buses plying the Biratnagar-Kathmandu route. Now there are 22,” said Kishor Dhamala, central member of the Nepal Transportation Workers Association. “Most of them are premium buses with modern facilities.” Around 200 new public buses have obtained operating permits from the Koshi Zonal Transport Management Office in the last fiscal year. While renowned companies like Makalu and Agni have added buses on the route, new operators like Sajilo, Aayush and Aanukul, among others, have joined them. Buses from Biratnagar to Kathmandu, Pokhara, Butwal, Bhairahawa, Dang, Tulsipur, Nepalgunj and Dhangadhi operate on a daily basis. Likewise, buses connect Biratnagar with Chainpur and Terhathum in the hilly region. Around 250 small and big buses leave Biratnagar for various destinations daily.

Market monitoring team seals 5 valley shops

THE government market monitoring team on Sunday sealed four grocery shops and a bakery in the Capital for not complying with the government instructions to maintain price list, signboard, labeling of food packet, among others. Siriz Kirana Store of Thapathali, Edmund Bakery Centre, Shubha Pathibhara Stores, Manakamana Store, Acharya General Stores of Babarmahal have been sealed, according to the Department of Commerce and Supply Management (DoCSM) which coordinates the daily market monitoring. The shops were closed after a follow-up monitoring by the DoCSM on Sunday. The department said it was compelled to take such an action after the shops continued with old practice, overlooking previous warnings. The monitoring team found that five of the seven shops were not adhering to the department’s instruction. “The five shops failed to implement our instructions that include maintaining price list, sign board and labels on their products,” said Hari Narayan Belbase, director at the DoCSM. On top of regular monitoring, the depatment has intensified its follow-up inspections by taking into account the upcoming festive season. The shops in question were inspected by a market monitoring team on July 23. Manakamana Stores and Siriz Kirana Store had not registered with the government agency and they failed to abide by the department’s instruction in this regard. The DoCSM said whether to allow the shops to re-open would be decided on the basis of written clarifications of the traders after correcting their wrongdoings. A majority of the traders were not heeding the government instruction to correct mistakes. Belbase said the follow-up inspections would focus on changes in the market and seal businesses instantly if anyone is found flaunting with the rules. Normally, the inspection team checks the businesses and issues order to be present at the DoCSM within three to seven days for clarification. Of late, the government has been giving top priority to the inspection drive in view of the festive season to control unethical practices such as black marketing, hoarding and artificial price hike. Inspection of products such as edible oil, vegetable, rice and meat are on the top priority, as per the DoCSM which is set to add more teams for monitoring following the recent direction of the Ministry of Finance to increase the inspection activities.

Customs Depart set to revise reference price

THE Department of Customs (DoC) is working on to hike the valuation (reference price) of some 3,000 imported goods in line with the increased price of such goods in the international market. The DoC fixes reference prices of good imported to discourage huge undervaluation of goods to pay low customs duty. Once the new reference price comes into force, the importers regardless of the purchase price of the goods will have to pay the duty as per the reference price determined by the customs office. The customs offices may purchase the goods by paying the price as per the bills in the event of discrepancies. However, the customs offices usually clear the customs of imported goods based on the transaction value as mentioned in the bill. Officials said the products, including textiles and garments, shœs, motor parts, plastic materials and electronic items are on the list of items whose valuation could be raised. A meeting of chiefs of different Customs Offices across the country on August 24-26 had stressed on the need for revising the reference price of a large number of items, said Damodar Regmi, deputy director general at the DoC. “The department is currently preparing a detailed report with regards to the name and status of the items whose reference prices have to be revised,” he said. The reference price of the items will be raised by an estimated 15-20 percent. The revision in the reference price works as an alternative information in the event of undervaluation of imports. It also helps customs offices maintain uniformity in the valuation of goods. “We have been preparing to increase the valuation of some items on the basis of growing complaints of tax evasion through under invoicing,” said a high level official at the department. Regmi also said the recommended names for revision of the reference price are among those which have been receiving complaints of higher under valuation. “The revision in customs valuation will not only help control the undervaluation but also help to minimize the discrepancy between the customs declared price and market price,” he added. The department had directed customs offices across the country to send the list of items for revision at the beginning of the new fiscal year. “Having received suggestions from the customs offices, we are now sorting out the items,” said Regmi, adding that the final list of the items will be prepared within this week. He said the reference price would be revised for imported items both from India and other countries. After finalising the list, the DoC will give around two weeks for local imports (imports from India and China without opening letters of credit) to comply with the new valuation. Importers of goods from third countries will get three weeks to comply with the revised reference price.

All phone numbers to have 10 digits

ALL phone numbers will have 10 digits under the government’s National Numbering Plan (NNP) which is expected to be implemented in this fiscal year. Presently, mobile phones have 10-digit numbers while fixed line and limited mobility services such as the one provided by United Telecom Limited (UTL) have nine-digit phone numbers including the area code. “This is a move to standardize the numbering of telephone services,” said Min Prasad Aryal, deputy director at the Nepal Telecommunications Authority (NTA). “This will increase the capacity of operators to distribute more telephone lines.” Nepal Telecom (NT) has been given the operator codes 4, 5 and 6 allowing it to distribute 30 million lines. Ncell’s operator codes are 0 and 1 permitting it to distribute a maximum of 20 million lines. “Standardization will enable operators to distribute 200 million lines,’ said Aryal. “The operators have been given single-digit operator codes, and standardization will allow them to get double-digit operator codes which will enable them to distribute more telephone lines.” A study carried out by a team led by Gyanendra Man Baidhya, telecom expert on national numbering, had recommended to the NTA to implement a new numbering system with 10-digit numbers. Meanwhile, the new system will also pave the way for new operators to get operator codes for mobile services in a standardized way. Nepal’s six telecom companies—Ncell, NT, Smart Telecom, UTL, Nepal Satellite Telecom and CG Communications—can potentially serve more than 50 million subscribers under the existing numbering system. “After full implementation of the NNP, there will be a number capacity for over 200 million potential users, which means we will not run out of phone numbers for the next 30 years,” said an NTA official. The new numbering plan will also set aside operator codes for new mobile operators like Smart Telecom, which is preparing to start nationwide mobile service after obtaining a unified telecom licence. Based on the government’s plan to allow small operators to provide mobile services, UTL has been eyeing a unified licence The study report, which was submitted to the NTA recently, has also urged the government to charge a certain fee from operators for each phone number they maintain in their system. Pursuant to the report’s recommendations, the NTA is preparing to carry out a study and fix the charges for phone lines after separating them into commercial and non-commercial. Aryal said that the idea was to best utilise scarce numbering and discourage operators from hoarding numbers. Bangladesh and Pakistan have been charging per subscriber fees from their operators annually. The NTA said it would start collecting feedback on the NNP to finalise it and ask the board for its approval. The NTA Confronted by a swelling number of operators and demand for telephone lines, the NTA had been planning to implement the new national numbering system for the last two years. NTA officials said there would be some major changes to normal landlines and short codes provided for commercial purposes.

Bihar mill surge eating into Nepal rice industry

THE number of rice mills in Birgunj has drastically dropped because of the surge in the number of ultramodern rice mills in bordering Indian territory in the recent days. Around 100 big and small mills were in operation until a couple of years ago, out of which only 20 are in operation today. Bihar Chief Minister Nitish Kumar on Thursday inaugurated Ripuraj Rice Mills established at Aamodehi, Raxaul in April. Rameshwor Prashad Gupta, director of mills, said the factory besides supplying its products to different Indian states will also export to 10 countries. The Bihar state government has proposed to invest IRs 150 million in the Raxaul area to operate food plaza. Nabin Kumar, chief secretary at the Industry Department of Bihar government, and Rashmi Burma of Finance Department from the central government flouted the proposal to this effect on June 8 during their site visit of the Ripuraj Mills. Around a dozen rice industries with a daily capacity ranging from 200,000 to 300,000 tonnes have opened in the vicinity of Raxaul. This has also led to the closure of around 75 percent of mills in Bara and Parsa districts in Nepal. Even a major of the factories around are struggling to operate in full capacity. Tara Kalawar, director of Om Food Industry based in Allau, Birgunj, said the factory’s production has come down by 50 percent. The Bihar government has offered incentive and tax exemption for establishing such industries. Kalawar said a number of industries producing rice were established after the Indian government imposed a ban on rice exports a few years ago. The relaxed provision on the Indian side of the border has pile pressure on the Nepali factories. “The industrialists are now facing difficulties to pay interest on their loans,” said Kalawar. Officials at the Birgunj Chamber of Commerce and Industry said the domestic industries are facing challenges to survive as the government dœs not have different customs policy on the import of paddy and rice. The government charges five percent agriculture tax on the import of paddy and rice. The local industrialists said higher quality rice is being imported under low quality brands to evade tax. “We have asked the customs office to evaluate the rice as per its families,” said Ashok Vaidhya, president of the Birgunj chamber. Customs chief Ramhari Aryal said his office will revise the customs valuation rate of rice within a month. “We are discussing the problems of local industrialists. We will soon revise the customs valuation rate,” he said. Rice worth Rs 1.49 billion and paddy worth Rs 3.99 billion was imported through the Birgunj customs.

Nepse logs 3.33 points gain in a week

NEPAL Stock Exchange (Nepse) gained 3.33 points last week to close at 551.44 points. It was the first time that the benchmark has crossed 550 points in the last six months. The upward movement of the stock market has gained momentum in the recent days with the companies listed on the Nepse showing good profit margin. Ram Chandra Bhattarai, director at Aryatara Investment _ Securities, attributed the recent gain to people’s hope that they would get good profit given that a majority of the companies are publishing their financial results of the last fiscal year. “The market is expected to go up until the companies announce book closure.” Of the nine groups categorised, six registered gains in their respective indices. hydropower companies topped the list with a gain of 98.22 points, followed by hotels, manufacturing, development Banks, ‘others’ and finance companies. Bhattrai said the expectation of investors that Chilime Hydropower would provide a heavy bonus share and cash dividend helped soar the hydropower sector’s index. Only two trading groups— Insurance Companies and Commercial Banks—witnessed a fall in their respective indices last week. The index of ‘trading’ group remained stable at 172.23 throughout the weekdays. The sensitive index that measures the transaction of the class ‘A’ companies increased by 0.59 points to close at 138.55 points. Among the individual companies, Nepal Bangladesh Bank topped both in terms of the number of shares and transaction amount. The bank witnessed a turnover of Rs 174.04 million through transaction of 489,899 shares over the period. According to stockbrokers, the bank’s higher equity transaction was fueled by the news that the ICFC, a Bengali group is on the verge of taking over the shares of NB Group in the bank. Chilime Hydropower Company, Nepal Credit _ Commerce Bank, Everest Bank and Kumari Bank are other companies that hit the list of top transaction amount. The capital market observed a 37.44 percent rise in the transaction worth during the review period. The total turnover of the market amounted to Rs 872.1 million, up from Rs 634.5 million in the previous week. However, the number of shares traded declined to 2,621,917 units as against 2,709,302 units. Transaction of ‘A’ category companies amounted to Rs 392.3 million, which was 44.99 percent of the total transaction amount. up after US growth data

System of collecting land taxes through banks to be extended

THE Department of Land Reform and Management (DoLRM) has been preparing to extend the system of collecting taxes through banks to another 15 Land Revenue Offices (LRO) across the country after it became a resounding success in the Kathmandu valley. Nepal Bank Limited and Rastriya Banijya Bank have been providing the service at the five LROs in the valley since the past eight months. Under the system, property owners can pay their land taxes and other fees at the offices of the two banks. According to the DoLRM, LRO offices in Sunsari, Bhadrapur, Biratnagar, Dhanusha, Parsa, Makwanpur, Chitwan, Kavre, Rupandehi, Kaski, Dang, Banke, Bardia, Kailali and Kanchanpur will come under the system in the near future. The department has made budget allocations to implement the scheme and asked its offices to make room for the bank outlets. “We have written to the Prime Minister’s Office (PMO) to call a meeting to discuss the plan. Since numerous government agencies are involved, we will have to get their approval to implement it,” said Kamal Prasad Timalsina, under secretary at the DoLRM. According to him, the DoLRM will have to acquire permission from the Office of the Attorney General, Ministry of Finance and Nepal Rastra Bank before launching the system. As the tax money collected by the LROs has to be shared with the district development committees and municipalities, coordination with them is necessary, said Timalsina. “This process takes two to three months. For this reason, we are serious about holding talks with the concerned authorities,” added Timilsina. According to him, the Citizens Charter, which requires compensation to be paid for failure to provide service, is in effect at the 20 LRO offices planned to be brought under the new scheme. “The system is already in place at the five LROs in Kathmandu,” he said. The implementation of tax collection through banks has many benefits for service vendors as well as service seekers. Amid growing complaints about financial fraud in the LROs, the move is likely to bring financial transparency and give some respite to the general public. “It is a convenient method for both the employees as well as the service seekers,” said Timilsina. “Due to lack of awareness, even neat and clean transactions in the offices have been mistaken as fraud. This system will bring such problems to an end.”

Disputes, lack of coordination among agencies hit road projects

DISPUTES over alignment, heavy demand for compensation and lack of coordination among government agencies have emerged as major problems facing implementation of road projects. Seti Highway, Postal Road, Mid-Hill Highway, Kathmandu-Tarai Fast Track road are some of the projects facing such problems. At a recent annual project review meeting at the Ministry of Physical Infrastructure and Transport (MoPIT), DoR officials said that it has been two years since they sought Department of Forest’s permission to cut down the trees and make way for alignment along the Tikapur- Achham stretch of the Seti Highway but without success. The highway links Achham, Bajura District and Bajhang and meet border of China. Tulasi Prasad Sitaula, secretary at the MoPIT, said problems in the Seti Highway and Postal Highway had emerged as the projects’ work was pushed in haste without completing the Environmental Impact Assessment (EIA). The delay in clearing the space for alignment falling in forest areas in eastern Kailai has prevented the contractors from opening a track of the Postal Highway. “Alignment dispute and land acquisition have become tough issues when implementing projects,” said Arjun Jung Thapa, deputy director general of the DoR.

Nepal maintains sixth place in world lentil output: FAO

NEPAL has retained its position as the world’s sixth largest producers of lentils in 2012 after it logged 0.64 percent rise in production to 208,201 tonnes, according to the Food and Agriculture Organization (FAO) of the United Nations. The FAO statistics show that Nepal’s production accounted for 4.57 percent of the world’s lentils in 2012. In terms of production, Nepal is behind Canada, India, Australia, Turkey and the US. The world lentils output grew by 3.32 percent to 4.55 million tonnes in 2012. Meanwhile, the area under lentil cultivation rose to 207,630 hectares last year from 207,591 hectares in 2011. It was cultivated in 187,437 hectares of land in 2010. Despite the increase in production, Nepal’s lentil export has fallen significantly and its price has gone up. The Trade and Export Promotion Centre (TEPC) statistics show that lentil export in the first 11 months (mid-July to mid-June) of 2012-13 dropped by 24.55 percent to 21,209 tonnes year on year. According to the TEPC statistics, the lentil price on an average rose to 121 per kg in 2012-13, against Rs 77 per kg in 2011-12. Nepal exported lentils worth Rs 2.57 billion in the first eleven months of the last fiscal year as compared to 33,151 tonnes worth Rs 2.67 billion it had exported in 2011-12. Bangladesh alone procured 29,579 tonnes of lentils worth Rs 2.45 billion while exports to India stood at Rs 193 million. Bangladesh is the largest buyer of Nepali lentils followed by India, Singapore, the UAE, and Bahrain. In 2008-09, Nepal made a record high lentil export of 56,767 tonnes worth Rs 5.66 billion. Lentils is among Nepal’s top 10 export commodities. Lentil traders and importers said spiralling price in the international market coupled with supply crunch as a major reason behind the rise in price of Nepali lentils. They warned of further rise in the lentil price because of the growing market demand. “Nepali traders are unable to fulfill lentil demand in Bangladesh,” said Ajay Parajuli, executive secretary at the Association of Nepalese Rice, Oil and Pulses Industry. “Although 80 percent of the total lentils produced in Nepal are exported, the existing output is too low to meet the international demand.” Lentils are produced in all the districts in the country except Manang and Mustang. Commercial production, however, is concentrated in the Tarai. More than 90 percent of lentil is grown in the region because of its favourable climatic and soil conditions. Masoor— with brown skin and orange gain—is the common variety grown in Nepal. TOP 10 LENTIL PRODUCERS IN 2012 Country 2011 (in tonnes) 2012 (in tonnes) Canada 1,531,900 1,493,620 India 943,800 950,000 Australia 379,659 463,000 Turkey 405,952 438,000 USA 214,640 240,490 Nepal 206,869 208,201 China 150,000 145,000 Ethiopia 80,952 128,009 Syria 112,470 115,000 Iran 98,516 100,000 (Source: FAO)

West Seti completion date pushed back further

INVESTMENT Board of Nepal (IBN) has said the much talked about West Seti Hydropower Project will be delayed by two more years, with CWE Investment, a subsidiary of power developer China Three Gorges Corporation (CTGC), demanding change in rehabilitation and resettlement modality of the project. IBN CEO Radhes Pant on Saturday said the CWE has now asked the government to take over tasks of land acquisition and resettlement of the project affected area although it had earlier agreed to carry out those tasks itself. A high-level official at the IBN said the CWE has been demanding more time—one and a half years—to complete the project. Energy Secretary Bishwo Prakash Pandit said the government is ready to take up works related to land acquisition and resettlement but the Chinese investor will have to bear the cost. As per the memorandum signed between the IBN and CWE Investment, the project is scheduled to be completed in 2019. The government will have to change the law to address the request of the Chinese investors and it will take time, said Pant. Speaking at a programme organised by GP Koirala Foundation, Pant said it would be tough to act as per the request of the Chinese company as the Nepali laws do not allow doing so. “The existing law should be changed if the government takes over the responsibility of acquiring land and managing resettlement,” he said. The existing Land Acquisition Act 1894 states that the government shall provide the land if it is under its ownership, while the private developer has to acquire the land on its own for any project development. Energy Minister Umakant Jha said as the West Seti project was the only remedy to end the ongoing power crisis, the government will make every effort, including the revision in law for the project implementation. The first memorandum of understanding (MoU) signed between the Ministry of Energy (MoE) and the Chinese company on March 1, 2012 had envisioned to initiate the project works from July 2014 and to complete by 2019. The revised MoU signed between the IBN and CWE on August 27, 2012 retained the same time frame with an understanding that the Chinese company will be given additional six months’ as compensation to make up for the time lost because of the interference into the project by then Natural Resources and Means Committee (NRMC). Pant said the IBN will soon hold a meeting with the CWE so as to discuss on a number of issues, including land acquisition and resettlement, optimitization of the project by making it a multipurpose one and to hold studies on seismic condition of the project site. “The earlier studies conducted by Australia’s Snowy Mountains Energy Corporation (SMEC) are not matured enough and separate seismological studies need to be done so as to ensure every safety of the project area,” he said, adding, “Once power development agreement (PDA) with the project is signed, both of us will have contractual obligations. So, all ground works should be cleared before signing PDA.” Pant also added that the CWE writing an official email to the IBN has asked the Board to come to China to discuss on those issues. “We will soon fix a date to hold a meeting with CWE officials in China,” he added. The IBN, however, insist that the preparations to develop the 750 MW storage-type project were under control with the possibility to implement the project successfully. “It is our mistake to realise the project overnight which has already been delayed by around two decades,” Pant said. The CWE has completed technical evaluation of the project on March 8 and financial evaluation on July 30, 2013. Speaking at the programme, Chinese Ambassador to Nepal Wu Chuntai said that the West Seti project as a milestone for Nepal-China relationship and that his government and the CWE were fully committed to realise it. He, however, stressed the need to take into account multidimensional aspects with regard to the field investigation, technical and financial evaluation and co-operation from local people. He also requested the Government of Nepal and all stakeholders to cooperate in the project implementation. “As the CWE has already asked the IBN officials to hold talks, the unsettled issues will be solved gradually,” he said. China has agreed to provide a loan worth $1.6 billion for the project development. The agreement between the IBN and CWE has ensured 10 percent equity to the local population in the Far West, allocation of 150 MW of electricity from the project to the region and multipurpose benefits from the project to the maximum extent economically possible. The agreement has also explored new possibilities of developing an industrial hub in the Far West with assistance from CTGC.

Universal, Calogi sign deal

KATHMANDU: Universal Tours and Travels has signed an exclusive distribution agreement with Calogi, the world’s fastest growing air cargo portal. The agreement provides Universal Tours and Travels access to Calogi’s range of e-freight business solutions, a statement issued by the company said. “As Nepal’s exports increase, the need for reliable, secure and simple cargo solutions will grow. Calogi’s online cargo solutions connect Nepalese businesses with freight forwarders, airlines and cargo handlers around the world, supplying the international demand for goods such as tapestries, garments, handicrafts, medicinal herbs and jewellery,” the statement said. “The Calogi portal also ensures imports into the country are managed with reliable, secure, simple, and cost-effective systems.” Calogi has 14 established distribution partnerships worldwide, and has relationships with companies in Europe, Asia and the Americas, supplying Nepal’s small-to-medium sized businesses with an expanded global reach.

Everest Bank CSR

KATHMANDU: As part of its CSR (Corporate Social Responsibility) initiative, Everest Bank has made arrangements for pure drinking water at Geta Eye Hospital situated in Dhangadi, Kathmandu. AK Aluwaliya, chief executive officer of Everest Bank, and Dr Suresh Panta, head of Geta Eye Hospital, inaugurated the new service amid a programme. The bank has said it is committed to work on several areas to increase the status of health, education and infrastructure sectors.

PRICES OF IMPORTS CLIMB ALONG WITH US DOLLAR

MARKET prices of imported products have been on an upward trajectory with the Nepali rupee sinking to all-time lows. Traders said a stronger US dollar had resulted in soaring prices of consumer goods like garments, edibles and electronics. According to Nepal Rastra Bank, the domestic currency has depreciated by almost Rs 18 in the last two months against the greenback. The Nepali rupee dipped to a record low of Rs 108.90 per dollar on Aug 29 compared to Rs 91.40 per dollar on June 29. Sachin Shrestha, brand manager at apparel store UFO, said prices of Chinese outfits had jumped 40-50 percent in the last two months. “Readymade clothes which were available at Rs 1,000 apiece now cost Rs 1,500,” said Shrestha. “Besides the rise of the US dollar, a global increment in cotton prices and hike in worker wages in China has also pushed up prices of apparels imported from China,” he added. This is the time traders place import orders for goods meant for the upcoming festive season. They said goods, particularly apparels and footwear, had started to enter the country from the Chinese market. Most of the demand for apparels and footwear is fulfilled through imports from China. Traders said that the goods imported for the festive season would be highly expensive. Meanwhile, household expenses are also swelling due to daily goods becoming costlier. Pavitra Bajracharya, president of the Nepal Retailers’ Association, said that edible oils, gram, green pea and white pea imported from third countries had become more expensive. “Big traders have started curtailing supply in anticipation of the dollar rising further,” he said. Supply constraints will lead to higher prices of essentials. The government has intensified market monitoring due to rising instances of malpractices. Sellers of electronic items have also been preparing to increase their prices. Akhil Gupta, director of SG Global, an authorised distributor of Sharp electronics, said they would be increasing prices by 5-10 percent from next week. Sales of electronic items also jump during the festive season. Meanwhile, automobile traders said that prices of vehicles imported from countries other than India were likely to go 12-20 percent.

Tourist arrivals expected to rise due to stronger dollar

THE country’s import sector may be watching the freefall of the Nepali rupee against the US dollar with hearts pounding, but the tourism industry is brimming with anticipation for a bumper season. With the exchange rate going in favour of foreign visitors, tourists get Rs 109 for US$ 1. The rate, if compared to the same period last year, means a 20 percent bonus to foreign visitors to the Himalayan nation. Travel trade entrepreneurs said that tourists would get more bang for the buck and expected higher numbers this tourist season that normally starts from mid September. The autumn-September to November-is the peak tourist season which offers highly pleasant weather for trekking and mountain views. Nepal sees 30-40 percent of the total tourist arrivals during the autumn season. “A stronger US dollar means an increase in visitors’ purchasing power. And this in turn will attract more tourists to Nepal, which has become one of the cheapest destinations for travellers,” said Hari Sarmah, chief executive officer of the Nepal Association of Tour and Travel Agents. The exchange rate was Rs 89 to the dollar during the same period last year. “The impact will also be visible on the country’s foreign exchange reserves.” According to Nepal Rastra Bank’s statistics, foreign exchange earnings from the travel trade sector jumped 11.4 percent to Rs 34.21 billion in the last fiscal year. Shibesh Shrestha, managing director of C _ K Nepal Travel and Tours, said that the appreciation of the dollar would not benefit travellers much who have already booked their trips for this season. “However, it will be a boon for free independent travellers and backpackers,” Shrestha said, adding that there would be a big surge in the number of independent travellers this season. Market watchers say it is high time to attract tourist from neighbouring countries as they are now looking for shorter trips and destinations which they can afford. AIRLINE WŒS With the onset of the tourist season, airline connectivity is likely to be a major setback. The request of the Civil Aviation Authority of Nepal (CAAN) to all international airlines flying wide-body aircraft to Kathmandu airport to restrict their take-off and landing weight is likely to be a big setback during the peak season. CAAN has issued a request letter to international airlines to restrict their payload to 196 tonnes until Sept 30 to prevent damage to the runway of the country’s sole international airport. This provision means, for example, Thai Airways which flies Bœing 777 aircraft has to offload almost 100 passengers from its aircraft to meet the aviation regulator’s obligation. “And the payload restriction request has come when the airlines’ major business season is almost at hand,” said Shyam Raj Thapaliya, managing director of Osho World Travel Nepal. CAAN has said that it has entrusted a Spanish company to prepare a runway evaluation study report by the end of Sept, and based on the report, further decisions will be taken to fix the runway problem permanently. Airlines and the travel trade sector wonder what further decision CAAN will take after the Spanish company submits its report. “An unexpected decision, if imposed, will have its impact on airline revenue and seat capacity this season,” Thapaliya said. COSTLY OUTBOUND According to tour operators, the strength of the dollar has made travellers, particularly Asians, to think twice about visiting destinations like Europe and the Americas. Suraj Vaidya, president of the Federation of Nepalese Chambers of Commerce and Industry, said it was high time Nepal launched promotional packages in India and China. “Due to the strength of the dollar, they will not prefer to travel to Europe and other long haul destinations,” he said, adding that the devaluation of the Nepali rupee would help tourism considerably if it was realized immediately. Tourism entrepreneurs said that longhaul travel is getting converted into short haul overnight, and it will benefit destinations who offer the cheapest rates.

NT launches four internet packages

NEPAL Telecom (NT) has launched four volumebased data packages under its Sky Pro service. The packages that are coming into effect from Sunday offer data service at Rs 0.23 to Rs 0.40 per MB. The packages — 500 MB, 2 GB, 5 GB, and 10 GB — will have a one-month validity period, according to NT. The 500 Mb package will cost Rs 200 excluding taxes. Similarly, 2 GB, 5 GB and 10 GB packages are priced at Rs 760, Rs 1,700 and Rs 2,400, respectively. Sky Pro service, also known as EVDO under NT’s IP CDMA project, allows customers to avail data service with speed up to 3.1 Mbps. “Packages will help customers benefit from cheaper internet service,” said Guna Kesari Pradhan, spokesperson for NT. She said Sky Pro RUIM can be used for both voice and data service in IP CDMA technology-compatible smartphones, desktops, laptops and tablet computers through a USB dongle. In a bid to promote Sky Pro, NT has also been selling USB dongle bundling with the RUIM card. NT said customers buying the bundled service get an EVDO dongle, talk time worth Rs 100 and 3 GB data with 3 months validity at Rs 2,200.

FNCCI urges CPN-UML to incorporate economic agendas in poll manifesto

THE Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged CPN-UML leaders to include the “common economic agendas” in the party’s election manifesto, prioritising employment and economic prosperity. The country’s apex business body had also made a similar request to the Nepali Congress (NC) three weeks ago. It plans to hold similar meetings will all major political parties, pleading them to put economic development at heart of their election manifestos. An FNCCI team, which was on Friday summoned at the party’s headquarters for their inputs to be incorporated in the manifesto, urged the UML leadership to prepare the party’s manifesto with focus on addressing unemployment, trade deficit, energy crisis, unequal development, weak infrastructure and corruption. “More than 415,818 youth left the country for foreign employment in last fiscal year alone. Migration of youth for foreign employment has caused scarcity of potential and trained manpower for industries, while agriculture development is weaker than ever,” states the 16-page FNCCI suggestion letter handed over to the party. The letter also includes short- and long-term strategies for development. The FNCCI urged the party to complete the 900-MW Upper Karnali Hydro Project in the Midwestern region; 750-MW West Seti Hydro Project in the Far-west; 600- MW Budhi Gandaki and 900-MW Upper Tamakoshi in the central region; 600-MW Upper Marsyangi Hydro project, Lower 400-MW Tarun, and 415-MW Upper Tamor Hydro projects in the Eastern region. FNCCI President Suraj Vaidya said the UML “seemed to be serious” on economic development and creation of an investmentfriendly environment. “To much relief for the private sector, UML leaders convinced that the scheduled polls will be held on November 19, and they will also fix a date of the budget presentation,” he said. UML Standing Committee member Bharat Mohan Adhikari said: “We have taken their concerns seriously and will do our best to incorporate them in our election manifesto and implement in future.” With the CA polls on the horizon, FNCCI has begun homework to convince political parties to include the private sector’s agendas in their election manifestos. In a rare gesture of political unity, top leaders of seven political parties had recently expressed their commitment to the country’s hydropower development and decided not to hinder work on any hydel projects. The political parties had made such a commitment on April 11 at the initiative of the FNCCI. “The political parties have committed promoting the economic agendas a number of times in the past,” said an FNCCI vice president. “This time, we want their commitments to be mentioned in their manifestos.”

Two foreign bourses propose working terms with Nepse

TWO foreign stock exchange companies — Korea Exchange and Singapore Exchange — have expressed interest in working as a strategic partner with the Nepal Stock Exchange (Nepse). Nepse said it is studying the proposal forwarded by these companies. Korea Exchange’s proposal seeks a 10 percent stake in Nepse. Nepse General Manager Sitaram Thapaliya said they are studying Korea Exchange’s system to know whether it will be compatible in Nepal’s case. Thapaliya, however, declined to provide details on Singapore Exchange, saying they have not yet received a detailed proposal from the company. “If found feasible in the preliminary study, we will hire a consultant and fix the ‘Terms of Reference’ for the selection,” he said, adding they plan to complete the preliminary study and issue a public notice to appoint a consultant by mid September. If a company is selected for strategic partnership, Nepse will receive the system and other technical support, while the company will take a stake in Nepse. Nepse has long been searching for a strategic partner as it has failed in terms of innovation and online trading. The existing system is not compatible even for new instruments like mutual funds, market makers, debt instruments and stock derivatives, among others. Following the government’s decision to divest its shares in Nepse, the latter has been pursuing privatisation for the last four and half years. The Ministry of Finance and the Nepal Rastra Bank have also asked Nepse to find a strategic partner so that the government could divest or transfer its shares. The government holds 58.66 percent in Nepse, while the central bank holds 34.60 percent. After appointing a strategic partner, Nepse plans to adopt a full automation system for stock trading. “Besides, it could also help introduce new products and promote bond trading, which is currently in poor state,” said Thapaliya. India’s software major Infosys recently forwarded a proposal for its stock exchange software. Thapaliya said they are holding consultations with government authorities concerned on whether to initiate talks with prospective strategic partners or purchase the system. “We are waiting a clear government policy.”

Indian company interested in equity partnership with HIDCL

INDIA’S OPG Power and Infrastructure Private Limited has expressed interest in investing in Nepal’s hydropower sector in partnership with the Hydrœlectric Investment and Development Company Limited (HIDCL). The company, which operates a few power projects in India, has committed $10 million in equity partnership with HIDCL. OPG had dispatched a letter to HIDCL on August 3 expressing its interest in investing in Nepal. OPG Director Dalip Dua also attended an international investors’ conference organised by HIDCL on August 28- 29, where he committed the investment, according to a HIDCL statement. “We agree to invest (after due diligence) $10 million in a project where HIDCL will do the syndication of fund, and be part of debt investment in a project,” read the letter signed by Dua. “We are happy to join as equity partner and can enter into cooperation agreement or memorandum of understanding.” HIDCL Chief Executive Deepak Rauniar said they will hold further discussions with OPG to determine the investment modality — “whether it wants to invest through HIDCL or as an independent partner having equity in the project”. This is the first time that any foreign private investor has agreed to join as equity partner with HIDCL. Government-owned HIDCL has been mandated to generate resources from both domestic and international markets to massively invest in the power sector. OPG is a captive power producer with an operating capacity of 270 MW. It operates three plants — 77- MW Chennai I and II and 80-MW Chennai III, according to its website. It also has investment in 25.4-MW Mayavaram and 10-MW Waste Heat Chennai. Other projects being developed by OPG are 160-MW Chennai IV, 300-MW Gujrat and 12-MW Bellary. Rauniar said other international investors also showed interest in investing during the two-day meet. The event was attended by investors from India, China, Japan, Korea, USA, New Zealand, Norway, Czech Republic, Australia, Russia and Bangladesh. Foreign diplomats, donors and Nepali government officials also participated at the meeting. The meeting was held to discuss 10 storage-type hydro projects each having capacity of more than 100 MW and generate resources for them. During the meeting, Asian Development Bank Country Director for Nepal Kenichi Yokohama expressed readiness to invest in storage- type projects. HIDCL has so far signed investment agreement for 42-MW Mistri Khola Hydropower Project and 27- MW Dordi Khola project. It is holding talks with commercial banks to inject funds into four other projects as well. The company currently has Rs 8.5 billion, most of which is deposited in banks.