R&D_NewsBrief_13May

R&D

Economic Research & Business

Development

1

Date: May 13, 2010

Highlights

Nepal Bankers´ Association has executed an ´informal gentleman

understanding´ among all 27 commercial banks to limit deposit interest rate at

12 percent - a move some experts believe as against the spirit of liberal

economic policy.

Forgive me, averred UCPN (Maoist) Chairman Pushpa Kamal Dahal on

Wednesday as he apologised to intellectuals and Valley folk for

"inconvenience" caused them due to his public speech from Khula Manch.

―My statement was not meant to hurt people here. I apologise if you felt

aggrieved at my remarks," Dahal said at an interaction held by his party with

intellectuals and civil society leaders.

Unified CPN (Maoist) Pushpa Kamal Dahal has said his party is ready to keep

the combatants under the supervision of the special committee and complete

the integration and rehabilitation process within four months.

Prime Minister Madhav Kumar Nepal held a series of meetings with leaders of

the 11 different parties represented in the Constituent Assembly (CA) seeking

their renewed support to the current government as well as their approval for

extension of the CA's term.

The ruling parties‘ insistence that the number of combatants to be integrated

into the security forces has to be fixed right away is ―a ploy to humiliate the

Maoists,‖ UCPN (Maoist) Chairman Pushpa Kamal Dahal said on

Wednesday. The Nepali Congress and CPN-UML are demanding as a

precondition to a consensus government that the Maoist propose the number

of combatants to be integrated.

Three trade unions affiliated to different political parties have demanded that

factory workers be paid their wages for the six days work stopped as a result

of the general strike called by the UCPN (Maoist).

Due to government negligence Nepal is going to loose billions of rupees that

is collected by network marketing companies. ―General people‘s hard-earned

money is at risk as the law does not guarantee security,‖ said Jyoti Baniya,

general secretary of Consumer Rights Protection Forum (CRPF). These

companies collect billions but — according to the law — they have to deposit

only Rs 2.5 million in the DoC to get operating licence.

The deck is now clear for Nepal Stock Exchange (NEPSE) to appoint new

stock brokers after the Ministry of Finance gave its nod to the process on

Wednesday. Despite a Supreme Court (SC) verdict allowing NEPSE to

appoint new stock brokers, the secondary market authority was hesitating to

R&D


Development

2

decide on the same as the ministry had issued a letter to NEPSE asking it not

to go ahead with the process. The ministry cited a direction of the Commission

for Investigation of Abuse of Authority (CIAA) on the issue.

While the stock market has been witnessing gains over the past three

consecutive days, Nepal Stock Exchange (NEPSE) index saw double digit

growth on Tuesday and Wednesday. On Wednesday, the index closed at

449.08 points with a gain of 17.52 points while the market gained 12.79 points

on Tuesday. Although the first trading day after the UCPN (Maoist) lifted its

general strike on Friday saw negative growth, the ensuing days are showing

promising signs.

Mobile phone recharge cards of Nepal Telecom worth Rs. 100 are being sold

at a higher price than stated. Retailers in the New Road and Dallu areas of

Kathmandu have been found to be charging from Rs. 103 to Rs. 105 for the

cards.

Has UCPN (Maoist) Chairman Pushpa Kamal Dahal seen the light? On

Wednesday, he said constitution writing and peace process, and not leadership

of a national unity government, is the prime issue. Speaking at an interaction

with intellectuals and professionals here, he said, ―In an environment of peace

and a new statute, we will accept anyone who can lead the unity government.‖

This, at a time when his party has been saying it alone should lead the

government.

Nepali Congress (NC) has asked the Unified Communist Party of Nepal-

Maoist (UCPN-M) to come up with a proposal in the next two days to sort out

the PLA issue.

The United Nations Security Council (UNSC) on Wednesday renewed the

mandate of the United Nations Mission in Nepal (UNMIN) by four more

months till September 15, urging the government and the political parties to

agree and implement a timetable on integration and rehabilitation of Maoist

combatants.

The government has approved additional Rs 150 million to Nepal Food

Corporation (NFC) as subsidy to deliver food grains to remote food deficit

districts.

Nepal Electricity Authority ―may face bankruptcy‖ if the current electricity

tariff is not adjusted. In a letter circulated to the Electricity Tariff Commission

(ETC) recently, the power body has hinted its inability to provide electricity to

consumers given that the present tariff rate remains same.

The Supreme Court (SC) has refused to issue an interim order to stay the

decision of the Nepal Army (NA) to recruit another 271 technical staff.

A committee investigating the murder of media entrepreneur Jamim Shah has

stated in its report that he was killed by an Indian criminal gang at the behest

of the Indian ‗underworld‘. A source seeking anonymity said, ―The reason

R&D


Development

3

was not personal enmity, aggressiveness or trade between Shah and the

killers.‖

Foreign mountaineers who have climbed Mount Everest and another peak

will get free Nepali visas for two years, part of a scheme to boost tourism in

the Himalayan nation, a senior government official said.

BANKING:

Banks limit deposit interest rate to 12 pc

Nepal Bankers´ Association has executed an ´informal gentleman understanding´

among all 27 commercial banks to limit deposit interest rate at 12 percent - a move

some experts believe as against the spirit of liberal economic policy.

A banker, preferring to be unnamed, informed Republica that a meeting of Nepal

Bakers´ Association (NBA) took the decision some two weeks back to deal with

growing competition among commercial banks in attracting deposits by offering

higher interest rates.

Justifying the decision, the bankers said the NBA was forced to take the decision to

avoid possible spiral of unhealthy competition of offering more and more interest

rates to attract additional deposits that, if unstopped, will ultimately take entire

banking industry toward disaster.

The banker further elaborated possible impending risks and said that the interest rate

on one year deposits would have reached around 15 percent had such arrangements

not been implemented.

"If the banks are compelled to take deposits at 15 percent, they will have to invest

them in above 20 percent. Most of the businesses will become economically unviable

at that lending rates," he said. However, he was quick to add that such arrangement

will be applicable only for a short period of time, as it doesn´t incorporate other

players like development banks and finance companies which are already offering

interest rates higher than the limit.

Another banker, however, said the understanding is unlikely to remain in place as it is

not in the interest of new banks. "If all the banks offer the same deposit rate, it will be

difficult for the new banks to attract new depositors because all will go to established

banks," he said, requesting anonymity.

R&D


Development

4

The banker further said that both the Finance Ministry and Nepal Rastra Bank have

already been informed about the decision and that both the institutions have quietly

supported the move.

NBA president Sashin Joshi defended the decision and said that such decision was

necessary to stop a looming vicious upward spiral of deposit interest rates that could

take the lending rates to a level where no one can afford. "We have just tried to keep

the deposit interest rate equal to prevailing inflation rate," he said.

Joshi further said that the understanding will not be in place for a long period as the

liquidity situation has already improved.

NBA vice president Rajan Shingh Bhandari said that the decision was necessary to

maintain borrowers´ confidence that was eroding fast due to rapid rise in lending

interest rates. "Not only was the decision aimed to tackling weakening investors´

confidence, it was also to ensure adequate flow of credit to the economy," Bhandari

said. He also informed that the banks have agreed to keep the interest rates on deposit

between 11-12 percent.

However, experts have opposed the decision, labeling it as an attempt to reverse more

than two-decade long liberal policy, allowing market forces to set both lending and

deposit interest rates. \

"If that is the case, then the decision not only is against the spirit of liberal economic

policy but also limits customers´ interests as it squeezes competitiveness in the

banking industry," said Dr Ram Chandra Bhattarai, associated professor of Tribhuvan

University.

http://www.myrepublica.com/portal/index.php?action=news_details&news_id=18547

POLICY:

Dahal rues ‘dandy tirade’

Forgive me, averred UCPN (Maoist) Chairman Pushpa Kamal Dahal on Wednesday

as he apologised to intellectuals and Valley folk for "inconvenience" caused them due

to his public speech from Khula Manch.

―My statement was not meant to hurt people here. I apologise if you felt aggrieved at

my remarks," Dahal said at an interaction held by his party with intellectuals and civil

society leaders.

At the Khula Manch meeting on May 8, Dahal had said a "handful of so-called

intellectuals who have earned some money wear sukila-mukila (fancy clothes) and are

writing and speaking against the people while there are petty kings in the Valley". His

speech had intellectuals bristling.


R&D


Development

5

On Wednesday, however, he said "99 percent of intellectuals in Kathmandu are wise"

and "one percent are fools".

Seeking to sooth Kathmanduites' ire, he said they are wise and committed to equality.

"The Capital has always stood against rulers," he added. On the occasion, some

speakers directly or indirectly flayed his May 8 statement. Comedian Madan Krishna

Shrestha jeered, ―Welcome all neat and clean intellectuals and vigilantes to this five-

star hotel.‖ Dahal remained all smiles even when Shrestha lampooned him.

Kush Kumar Joshi, President of the Federation of Nepalese Chambers of Commerce

and Industry (FNCCI), was also at variance with Dahal over his remarks.―What does

vigilante mean?" he asked. "Do not utter such vulgar words,‖ he advised Dahal.

Countering Joshi, Dahal said some vigilantes raised slogans against him during the

peace rally. Joshi rejoined the parties should settle disputes through consensus to

make everyone neat and clean within days, he said.

Dr. Arun Shayami also advised Dahal not to launch verbal attacks on Kathmanduites.

http://www.ekantipur.com/the-kathmandu-post/2010/05/12/nation/dahal-rues-dandy-

tirade/208196/

Maoists ready to keep combatants under special committee

Unified CPN (Maoist) Pushpa Kamal Dahal has said his party is ready to keep the

combatants under the supervision of the special committee and complete the

integration and rehabilitation process within four months.

Addressing the gathering of the intellectuals at the end of the interaction organised by

his party on Wednesday, Dahal said the critical issues behind delay in forging

consensus is the concrete number of combatants that other parties have been

demanding for integration.

He said, his party proposes to separate those willing to integrate and those willing to

rehabilitate within one month so that number for integration can be worked out.

He questioned why a demand has been put today for transforming his party into a

civilian one. ―Had we contested the elections as a military group, an armed group?

Were we leading the government as an armed party?‖ Dahal questioned.

Responding to queries from the participants why he had accused the peace rally

organisers as vigilantes and threatened the intellectuals and Kathmandu residents,

Dahal said, he did not intend to do that. ―I had accused only those who were

humiliating our party cadres, not all intellectuals and all Kathmandu residents.‖

http://www.ekantipur.com/the-kathmandu-post/2010/05/12/nation/dahal-rues-dandy-tirade/208196/

http://www.ekantipur.com/the-kathmandu-post/2010/05/12/nation/dahal-rues-dandy-tirade/208196/

R&D


Development

6

Repeating his regular rhetoric that he had resigned as prime minister to avoid clashes,

Dahal said the party decision to withdraw the general strike was also to avoid similar

clashes.

―So much has been talked that the whole strike was for making me prime minister. It

clearly was not. I have already proposed in my party meeting that any person from

any party can be the prime minister but we want the assurance that constitution will

be written and peace process concludes,‖ Dahal added.

He mentioned that few elements have been trying to push the country into war, clash,

chaos and dismantle the CA. Dahal claimed some Indians had entered Birgunj during

the strike to create disaster like in the past when over 30 Maoists cadres were killed

on the spot. ―I have good information that such elements tried killing at least 150

people each in Birgunj, Janakpur and Saptari so that country would convulse into

civil war.‖

He claimed such elements had started ignoring the decision and command of Girija

Prasad Koirala, since few months before his death.

Additionally, he accepted that it was mistake to call nationwide general strike.

In another context, he claimed his party has never obstructed constitution-making

process and expressed sadness for continued allegations clamped on his party for

being hindrance to the peace process and constitution writing.

Stating that Prime Minister Madhav Kumar Nepal will not resign at any cost even if

UML asks him, he finally said it was a tussle between progressive and regressive

forces, which will determine whether republican Nepal will grow as independent or

dependent nation. nepalnews.com

PM Nepal confers with leaders of 11 parties for CA term extension

Prime Minister Madhav Kumar Nepal held a series of meetings with leaders of the 11

different parties represented in the Constituent Assembly (CA) seeking their renewed

support to the current government as well as their approval for extension of the CA's

term.

He separately met Madhesi Janadhikar Forum (Loktantrik) chairman and Deputy

Prime Minister Bijaya Kumar Gachchhadar and Terai Madhes Loktantrik Party

chairman Mahantha Thakur.

He also held joint discussion with CPN (ML) general secretary C.P Mainali and CPN

(United)'s Chandra Dev Joshi and Sunil Prajapati of Nepal Workers and Peasant

Party. The leaders of the three communist parties suggested the PM to initiate process

for extension of the CA's term on consensus.

R&D


Development

7

PM Nepal also met leaders of six other smaller parties - Chure Bhawar Rastriya Ekta

Party, Nepa Rastriya Party, Sanghiya Loktantrik Rastriya Manch, Dalit Janajati Party,

Nepal Loktantrik Samajbadi Dal and Samajbadi Prajatantrik Janata Dal.

On Tuesday, most of these fringe parties had signed a joint press statement with

UCPN (Maoist) demanding the resignation of the current government.nepalnews.com

Dahal irked at govt stance

The ruling parties‘ insistence that the number of combatants to be integrated into the

security forces has to be fixed right away is ―a ploy to humiliate the Maoists,‖ UCPN

(Maoist) Chairman Pushpa Kamal Dahal said on Wednesday.

The Nepali Congress and CPN-UML are demanding as a precondition to a consensus

government that the Maoist propose the number of combatants to be integrated.

―It is not immediately possible to fix the number,‖ the Maoist Chairman said at an

interaction with intellectuals and professionals here. ―This condition has a deeper

meaning, it is guided by a remote power,‖ he said, hinting at India.

He said his party was ready to complete the integration and rehabilitation of Maoist

combatants within four months, before the expiry of the sixth extension of UNMIN‘s

mandate on Sept. 15. The UN Security Council is yet to take a decision on the

government‘s request to extend UNMIN‘s term.

Dahal said his party was ready to disassociate combatants from the party‘s chain of

command and bring them under the Special Committee for the Supervision,

Integration and Rehabilitation of Maoist combatants. ―We are ready to regroup those

opting for integration and rehabilitation in two separate camps within Jestha (June

14),‖ he added.

Dahal opposed the condition floated by ruling parties on transformation of the Maoist

party into a civilian one saying that the issue had no relevance. He said the

mainstream parties never raised the issue of the transformation of the Maoist party

while signing the Comprehensive Peace Agreement, promulgation of the Interim

Constitution and the emergence of the party as the single largest one through the

Constituent Assembly election of April 2008.

Meanwhile, a senior non-Maoist leader said the signing of a deal between ruling

parties and the main opposition scheduled for May 1 had been put off at the ―last

moment‖ after the former insisted on fixing the number of combatants to be

integrated. ―All issues were settled, the Maoists were ready to bring their combatants

under the special committee but the deal was blocked after the condition on numbers,‖

said the source. ―After that, the Maoists took the tougher stance that they won‘t

support the extension of the tenure of the Constituent Assembly unless the prime

minister steps down.‖

R&D


Development

8

A senior Maoist leader clarified that his party was flexible about the integration

process, but it fears the incumbent government will not go if concrete steps are taken

before the resignation of the prime minister.

The party is ready for integration of its 5,000-7,000 combatants into various security

agencies and option of rehabilitation for the rest. It opposes the rehabilitation package

worth Rs. 250,000 per head proposed by the government. The peaceniks propose that

the rehabilitation package should be worth Rs 500,000, but the opposition wants Rs.

1,000,000 for each individual.

http://www.ekantipur.com/the-kathmandu-post/2010/05/12/top-story/Dahal-irked-at-

govt-stance/208189/

BUSINESS & ECONOMY:

Unions want strike days’ pay

Three trade unions affiliated to different political parties have demanded that factory

workers be paid their wages for the six days work stopped as a result of the general

strike called by the UCPN (Maoist).

The Maoists had organised a nationwide shutdown from May 2 demanding that the

prime minister step down.

The General Federation of Nepalese Trade Unions (GEFONT), the Trade Union

Congress and the Madhesi Trade Union Forum, Nepal have opposed the "no work, no

pay" system proposed by the private sector.

The workers have complained that the banda left them without food for their families

as they lost their income during the strike.

Executive secretary of the Morang Merchant Association Shyam Bhandari said that

the association had not decided whether the workers would be paid for the duration of

the banda.

"The Federation of Nepalese Chambers of Commerce and Industry will make a final

decision in this regard," he added.

http://www.ekantipur.com/2010/05/13/business/unions-want-strike-days-pay/314194/

http://www.ekantipur.com/the-kathmandu-post/2010/05/12/top-story/Dahal-irked-at-govt-stance/208189/

http://www.ekantipur.com/the-kathmandu-post/2010/05/12/top-story/Dahal-irked-at-govt-stance/208189/

http://www.ekantipur.com/2010/05/13/business/unions-want-strike-days-pay/314194/

R&D


Development

9

More new brokers in offing

The deck is now clear for Nepal Stock Exchange (NEPSE) to appoint new stock

brokers after the Ministry of Finance gave its nod to the process on Wednesday.

Despite a Supreme Court (SC) verdict allowing NEPSE to appoint new stock brokers,

the secondary market authority was hesitating to decide on the same as the ministry

had issued a letter to NEPSE asking it not to go ahead with the process. The ministry

cited a direction of the Commission for Investigation of Abuse of Authority (CIAA)

on the issue.

After the CIAA halted the process and questioned transparency in the appointment

process, NEPSE had moved the SC, which, in turn, had decided in favour of the

secondary market authority a few months ago.

With a view to appointing 27 new brokers, NEPSE has already shortlisted 316

candidates out of the 336 applicants. "We will now take an examination of the

shortlisted candidates and submit a potential list of 27 and 25 percent additional

applicants for final appointment to the Securities Board of Nepal (SEBON)," Shankar

Man Shresha, the NEPSE general manager, said on Wednesday.

The need for more brokers was felt after the NEPSE witnessed a good growth.

http://www.ekantipur.com/2010/05/13/business/more-new-brokers-in-offing/314193/

Recharge cards get dearer

Mobile phone recharge cards of Nepal Telecom worth Rs. 100 are being sold at a

higher price than stated. Retailers in the New Road and Dallu areas of Kathmandu

have been found to be charging from Rs. 103 to Rs. 105 for the cards.

Wholesalers said they obtain recharge cards at Rs. 96 each from Nepal Telecom and

sell them for Rs. 97-98 to shopkeepers who are required to retail them at Rs. 100.

When a mobile set is recharged using a card of Rs. 100 value, only Rs. 97.74 is added

to the subscriber's balance. But this system is not being implemented, and people have

been forced to pay more. The retailers have their own reasons why they

are charging their customers extra. Ram Mani Lamsal, a shopkeeper in Dallu, said he

had to sell the cards at Rs. 105 each as he obtained them from wholesalers for Rs.

103.

Sunil Kumar Sharma, a wholesaler, dismissed the retailers' claim saying that he did

not charge more than Rs. 97 to Rs. 98.

http://www.ekantipur.com/2010/05/13/business/recharge-cards-get-dearer/314190/

http://www.ekantipur.com/2010/05/13/business/more-new-brokers-in-offing/314193/

http://www.ekantipur.com/2010/05/13/business/recharge-cards-get-dearer/314190/

R&D


Development

10

MARKET:

NEPSE on gaining spree

While the stock market has been witnessing gains over the past three consecutive

days, Nepal Stock Exchange (NEPSE) index saw double digit growth on Tuesday and

Wednesday.

On Wednesday, the index closed at 449.08 points with a gain of 17.52 points while

the market gained 12.79 points on Tuesday. Although the first trading day after the

UCPN (Maoist) lifted its general strike on Friday saw negative growth, the ensuing

days are showing promising signs.

Nanda Koshore Mun-dada, president of Nepal Stockbrokeres‘ Association is not sure

if it is a sign of bullish trend. ―We have to watch the trend next week too,‖ he said,

adding that rise in stock market has not sustained longer 7-10 days in earlier days too.

―It may be a correction after the continuous decline to the lowest ebb,‖ he said.

A double digit growth in three sectors, including banking and hydropower, fuelled

NEPSE‘s ascent.

Another group apart from the banking and hydropower sector gained 30.54 points to

top the gainers‘ list.

Shares of 21 commercial banks changed hands on Wednesday, among which Laxmi

Bank Ltd. was the only loser in the sub-group, shedding 37 points.

Heavyweights like Nabil Bank Ltd., Standard Chartered Bank Ltd., Nepal Investment

Bank Ltd., Nepal SBI Bank Ltd. and Everest Bank Ltd. dominated the sub-group.

Fifteen companies were on the trading floor in the development banks‘ group. Sanima

Bikash Bank Ltd. topped the sector with a gain of 32 points while Biratlaxmi Bank

Ltd. shed the most, 38 points.

Of the 17 finance companies on the trading list, Lumbini Finance Ltd.

lost 31 points to top the losers‘ list, while IME Financial Institution Limited gained 30

points to top the group.

Shares of four insurance companies, three hydropower companies and the Nepal Door

Sanchar Company were also traded in the stock market.

http://www.ekantipur.com/2010/05/13/business/nepse-on-gaining-spree/314195/

http://www.ekantipur.com/2010/05/13/business/nepse-on-gaining-spree/314195/

R&D


Development

11

POLITICS:

Maoists mellow stance on unity govt

Has UCPN (Maoist) Chairman Pushpa Kamal Dahal seen the light? On Wednesday,

he said constitution writing and peace process, and not leadership of a national unity

government, is the prime issue.

Speaking at an interaction with intellectuals and professionals here, he said, ―In an

environment of peace and a new statute, we will accept anyone who can lead the unity

government.‖ This, at a time when his party has been saying it alone should lead the

government.

Dahal said he did not expect Prime Minister Madhav Kumar Nepal to resign. ―He will

cling on another year by extending the Constituent Assembly tenure. Unfortunate for

peace and the constitution.‖

He claimed forces were trying to fragment his party and keep it outside the

government.

He said, ―We must create pressure from all quarters to topple this government and

form one of consensus.‖

He said he expected help from intellectuals to do so. Outlining his position, he said,

―There are two forces — one for secularism, change, national independence, federal

democratic republic and federalism and another that opposes these and progress.‖

He claimed plots were being hatched inside and outside the country to split his party.

―Statute-drafting will not be completed even after the CA‘s term is extended as

reactionaries are plotting,‖ he added. ―Late Girija Prasad Koirala used to check them,

but now reactionary forces have hijacked NC.‖

Dahal said his party was all for a commission on missing persons and a truth and

reconciliation commission to make public the whereabouts of those who went missing

during the insurgency.

―We have to take the Nepal Army as well as Maoists into confidence while forming

the commission,‖ he said. Dahal also assured of disbanding the Young Communist

League within days.

He claimed he had averted confrontation in the country in the past one year.

―Last year, I stepped down from the post of prime minister to avert confrontation.

Again, we called off the indefinite strike to avert the same.‖

Dahal further claimed that ―some forces‖ tried to repeat the Gaur massacre (where 27

Maoist cadres were killed) during the strike.

R&D


Development

12

―Incident that were witnessed in Birgunj, Janakpur and other places where attempts to

kill a number of our cadres with a view to breaking the peace process. However, we

foiled these conspiracies by withdrawing the general strike,‖ he said.

http://www.ekantipur.com/the-kathmandu-post/2010/05/12/top-story/Maoists-

mellow-stance-on-unity-govt/208188/

Come up with PLA proposal in two days: NC to Maoists

Nepali Congress (NC) has asked the Unified Communist Party of Nepal-Maoist

(UCPN-M) to come up with a proposal in the next two days to sort out the PLA

issue.

In a meeting Wednesday morning with UCPN-M Chairman Pushpa Kamal Dahal, NC

leaders rejected his proposal to reach an agreement on the PLA issue by mid-June and

asked him to come up with a concrete proposal in two days.

"We have asked him to come with his proposal on the PLA, including the numbers to

be included in the Nepal Army, and a detailed time-frame for integration and

rehabilitation," said a senior NC leader privy to the dialogue with the Maoist

leadership.

"If we can reach an agreement on the PLA issue, the present deadlock will be over.

Without it, I don´t see any breakthrough," he said.

What is NC´s preference on the PLA numbers to be integrated in the Nepal Army?

"We have to take the army into confidence on this issue and we cannot decide the

number independently but there is no way we can integrate more than 3,400 PLA

combatants into the national army," he said, adding, "a few thousand additional forces

can be accommodated in other security forces."

The NC leaders have also told Dahal that they are open on the leadership issue and

that they are not opposed to him. "We have told him the NC is not against his

leadership but this issue should be sorted out at the end after an understanding is

reached on the six-point agenda," said the NC leader.

Leaders of the Tarai Madhes Democratic Party (TMDP) have met Maoist leader Dr

Baburam Bhattarai and assured him of their support as the next prime minister.

The last meeting of the UCPN-M standing committee decided that the question of

which party and who should lead the next government will be settled later on.


http://www.ekantipur.com/the-kathmandu-post/2010/05/12/top-story/Maoists-mellow-stance-on-unity-govt/208188/

http://www.ekantipur.com/the-kathmandu-post/2010/05/12/top-story/Maoists-mellow-stance-on-unity-govt/208188/


R&D


Development

13

UNMIN to stay till Sept 15

The United Nations Security Council (UNSC) on Wednesday renewed the mandate of

the United Nations Mission in Nepal (UNMIN) by four more months till September

15, urging the government and the political parties to agree and implement a timetable

on integration and rehabilitation of Maoist combatants.

Ambassador to the UN Gyan Chandra Acharya told Republica that the UNSC adopted

a resolution to this effect upon the request of the government for extension of the

UNMIN´s mandate after the expiry of the current mandate on May 15.

This is the sixth extension of the UN mission tasked with assisting the peace process

that began in November 2006.

Some UNSC members, while discussing Nepal government´s request for mandate

extension, maintained that UNMIN should be given broader role in integration and

rehabilitation of combatants. Some other member argued that UNMIN should be

given six months mandate. But both the arguments were not subscribed.

"We have to work extensively to convince the UNSC to pass a resolution in line with

the government request," a source at the Nepali mission told Republica.

While renewing the mandate, the UNSC called on all political parties to resolve their

differences through peaceful negation. It further urged political parties to expedite the

peace process, and to work together in a spirit of cooperation, consensus and

compromise in order to continue the transition to a durable long-term solution and to

enable the country to move to a peaceful, democratic and more prosperous future.

UNSC, according to the resolution obtained by Republica, also decided that UNMIN

should immediately begin to make necessary arrangements for its withdrawal,

including handing over any residual monitoring responsibilities by 15 September.


GENERAL:

Govt approves Rs150 m for food supply

The government has approved additional Rs 150 million to Nepal Food Corporation

(NFC) as subsidy to deliver food grains to remote food deficit districts.

The Ministry of Finance (MoF) decided to sanction the amount to the state owned

food supplier to speed up the delivery of food grains to the deficit districts of mid-

western and far-western regions, said Bijaya Dhwoj Thapa, deputy general manager

of NFC.


R&D


Development

14

NFC had suspended food supplies from last month citing shortage of fund in this

prime season of food delivery. The government has already sanctioned Rs 554 million

to NFC as transport subsidy for this year.

NFC had demanded a total of Rs 880 million from the government to supply 220,000

quintals of food grains against the total demand of 300,000 quintals from the deficit

districts.

Last year, the government had allocated Rs 610 million for the delivery of 193,000

quintals of food grains.

NFC has been delivering the foods grains to over two dozen districts under the

government´s transportation subsidy.


NEA may face ‘bankruptcy’

Nepal Electricity Authority ―may face bankruptcy‖ if the current electricity tariff is

not adjusted.

In a letter circulated to the Electricity Tariff Commission (ETC) recently, the power

body has hinted its inability to provide electricity to consumers given that the present

tariff rate remains same.

The tariff rate has not been adjusted for the last nine years. The current utility rate is

Rs. 7 per unit.

On Feb. 25, NEA had submitted a proposal to ETC, urging the latter to increase the

tarrif by minimum 25 percent as to stabilise its financial condition by equalising the

loss and profits.

In reply, the commission on April 1, had sent a letter to NEA asking why it wants to

revise the tariff.

Responding to ETC, the electricity authority stated that it is likely to face problem in

providing service to consumers across the country.

NEA is facing a loss of Rs. 4 billion yearly and the total loss so far is around Rs.12

billion. As a result of the deepening loss, NEA hasn‘t been able to develop new

hydropower projects in the recent years.

http://www.ekantipur.com/2010/05/13/capital/nea-may-face-bankruptcy/314203/


http://www.ekantipur.com/2010/05/13/capital/nea-may-face-bankruptcy/314203/

R&D


Development

15

SC nixes stay on NA recruitment drive

The Supreme Court (SC) has refused to issue an interim order to stay the decision of

the Nepal Army (NA) to recruit another 271 technical staff.

On April 19, two separate litigations had moved the SC against the NA's new

recruitment drive that started on the same day. The litigants had demanded a court

intervention to stop the Army from moving ahead with the recruitment drive claiming

―the move violated the Comprehensive Peace Agreement (CPA) and the last year's SC

interim order that stayed NA's similar recruitment drive.‖

Issued by a joint bench of justices Top Bahadur Magar and Krishna Prasad

Upadhyaya, the order concluded that it was not necessary to stay – at least for the

interim period – the NA's recruitment as that was purely technical and related to

delivering ―humanitarian services‖ like medical services to the needy.

―The court decision maintains that the balance of convenience in the case did not

necessitate an interim order,‖ said SC Assistant Spokesman Hemant Rawal. ―The

decision takes into account the fact that new vacancies were purely related to

recruiting technical manpower (not for infantry) such as doctors, for delivering of

humanitarian services.‖

The SC's rejection to issue the stay order, however, does not end the case here. The

court is yet to issue a final verdict on the same, which may take several months. On

top of that, last year's case on similar recruitment row is also pending at the court.

Petitioners, including advocate Shree Krishna Subedi, had argued that since the apex

court stay order on NA's earlier bid to recruit Army personnel was still in effect and

the court has not given a final verdict on the case, the Army cannot start another

recruitment bid as it would be a direct contempt of court. ―Last year's interim order

had asked the Army not to start any new recruitment and also not to give

appointments to those who had not received the letter when the order was issued,‖

said Subedi.

The court had invoked Clause 5.1.2. of the CPA while staying the last year's

recruitment drive, because it was not technical but for infantry.

The Clause 5.1.2. states that ―both sides shall not recruit additional 'military' forces

and shall not transport arms, ammunition and explosives or conduct military activities

against each other.‖

However, there is a serious disagreement over the interpretation of the word

―additional.‖ While the NA argues that CPA allows it to recruit under the ceiling

fixed at the time of signing the agreement (95,000) unless it is ―additional‖, the

petitioners maintain that the Army cannot recruit anyone.

http://www.ekantipur.com/2010/05/13/top-story/nepal-in-obamas-anti-hunger-

plan/314208/

http://www.ekantipur.com/2010/05/13/top-story/nepal-in-obamas-anti-hunger-plan/314208/

http://www.ekantipur.com/2010/05/13/top-story/nepal-in-obamas-anti-hunger-plan/314208/

R&D


Development

16

Mafia shot Jamim, says panel

A committee investigating the murder of media entrepreneur Jamim Shah has stated

in its report that he was killed by an Indian criminal gang at the behest of the Indian

‗underworld‘.

A source seeking anonymity said, ―The reason was not personal enmity,

aggressiveness or trade between Shah and the killers.‖

The five-member team formed on Feb. 8 and led by former Justice Govinda Prasad

Parajuli sent its report on Wednesday.

The report has tried to buttress the motive behind the killing. The report

recommended Nepal Police adopt new and scientific methods of investigation and

added ―foreign maneuvering has increased in Nepal.‖ It said the police mechanism is

outdated. The report said the government should hand over the Department of

Immigration to Nepal Police for security reasons.

The probe committee comprises officials of Nepal Police, National Investigation

Department, Attorney General‘s Office and a security expert.

The 192-page report has covered the overall aspects of the incident.

http://www.ekantipur.com/2010/05/13/capital/mafia-shot-jamim-says-panel/314217/

Everest climbers to get free Nepal visas

Foreign mountaineers who have climbed Mount Everest and another peak will get

free Nepali visas for two years, part of a scheme to boost tourism in the Himalayan

nation, a senior government official said.

More than 4,000 climbers have scaled the 8,850m (29,035 feet) Everest summit since

it was first climbed by New Zealander Sir Edmund Hillary and Tenzing Norgay

Sherpa in 1953. Some 700 of these foreigners are said to be still alive.

"We will waive the visa fees for them to visit Nepal in 2010 and 2011 part of the

Nepal Tourism Year plan," Ranjan Aryal, the most senior bureaucrat in the tourism

ministry told Reuters this week.

Himalayan Nepal, home to eight of the world's 14 highest mountains, including

Mount Everest, has designated 2011 as the year to boost tourism. It plans to receive

one million visitors next year, up from nearly half a million now.

Tourism accounts for 4% of the gross domestic product but travel officials say

political unrest, frequent general strikes and shutdowns of transportation and roads

had hit the industry.

http://www.ekantipur.com/2010/05/13/capital/mafia-shot-jamim-says-panel/314217/

R&D


Development

17

Officials said nearly 200 foreigners who have climbed Mount Dhaulagiri, the world's

seventh highest at 8,167m (26,794 feet), would also get free visa this year and in 2011

as Nepal marks the 50th anniversary this week of the first ascent of Dhaulagiri by a

Swiss-Austrian expedition.

Climbers will also get a 50% discount in climbing fees for Dhaulagiri for the rest of

2010 and all of next year as part of the celebrations, another official said.

Each foreign climber has to pay $5,000 to the government as royalty for climbing

Dhaulagiri.

http://www.dnaindia.com/world/report_everest-climbers-to-get-free-nepal-

visas_1382455

http://www.dnaindia.com/world/report_everest-climbers-to-get-free-nepal-visas_1382455

http://www.dnaindia.com/world/report_everest-climbers-to-get-free-nepal-visas_1382455

R&D_NewsBrief_13May

Documents

Transcript of R&D_NewsBrief_13May