R&D_NewsBrief_2ndSept

R&D

Economic Research & Business Development

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Date: September 2, 2009

Highlights

• The CPN-UML-led coalition government has served its 100-day honeymoon period, with the Prime Minister Madhav Kumar Nepal rarely having to do anything more than attending formal programmes, receiving memorandums from sundry organisations and meeting delegations at his office.

• Constitutional Committee (CC) under the Constituent Assembly (CA) has resumed its normal business after three months of inactivity from Tuesday, following the election of its new chairperson.

• Maoist leader C. P. Gajurel on Tuesday said his party was ready to let the House run provided the ruling coalition partners agreed to discuss in parliament the issue of the vice president’s oat-taking along with the issue related to the president.

• The Constitutional Committee (CC) of the Constituent Assembly (CA) formed a 19-member sub-committee on Tuesday to prepare its concept paper for the new constitution. The sub-committee will prepare the concept paper and preliminary draft on issues that do not fall under the jurisdiction of other 10 thematic committees.

• Prime Minister Madhav Kumar Nepal has hinted at cutting all annuities and privileges that Paramananda Jha has been entitled to as the vice president of the country.

• Rasritya Prajatantra Party - Nepal Chairman Kamal Thapa called Vice President Paramananda Jha’s defiance of the Supreme Court an outright disrespect of rule of law.

• The Nepal Bar Association today blamed the Constituent Assembly for trying to curtail the independence of judiciary in the new constitution to be promulgated by the CA and have threatened to launch a nationwide protest against the CA if it did not correct its move at the earliest.

• Inspector General of Police Ramesh Chand Thakuri told the Public Accounts Committee (PAC) of the Legislature-Parliament on Tuesday that there was no irregularity while purchasing parka jackets for Nepal Police.

• “The visiting 17-member Chinese delegation expressed China´s happiness over the one-China policy and said that China is convinced that no anti-China activities will be allowed from Nepali soil," Rajan Bhattarai, the PM´s foreign affairs advisor, said.

• China provides more student scholarships for Nepal in return for curbing free-Tibet activities.

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• After a hiatus of four months, the meeting of the Army Integration Special Committee (AISC) was held Tuesday under the chairmanship of Prime Minister Madhav Kumar Nepal.

• Nepali Prime Minister Madhav Kumar Nepal Tuesday said that the issue of "integrating" the combatants of the Unified Communist Party of Nepal (Maoist) (UCPN-M) will be managed within 6 months, state-run daily The Rising Nepal reported on Wednesday.

• European Economic Chamber (EEC-Nepal) and London Chambers of Commerce and Industry (LCCI) on August 26 signed an agreement of cooperation in London. The agreement is zeroed in on to promote and strengthen the development of trade relations and cooperation between member companies of both the chambers.

• Mandatory insurance of vehicles has increased vehicle operation cost for the owners, but Insurance Board (IB) has clarified that actual rise in cost is less than the extent by which the third party insurance premium was hiked.

• Not only developed countries, even poor country like Afghanistan has also begun to lure Nepali youths seeking greener pastures abroad. They are risking their lives to work in the country battered by terrorism for handsome remuneration that employers offer to them.

• Exhibitors at the fifth NADA Auto Show 2009 have said that the event has been successful in terms of attracting potential customers and the bookings received for family cars.

• Hotel bookings for the upcoming tourist season September to March has increased. "Hotel bookings have gone up by said Bharat Joshi, marketing director of the Hotel Yak & Yeti.”We're encouraged by the booking."

• There was growth of 87 per cent in tourist arrivals from China. Arrivals from Japan, Singapore, South Korea and Thailand also increased by 27 per cent, 44 per cent, 21 per cent and 9 per cent, respectively.

• Improving peace and security is giving a boost to the establishment of new factories in Banke district. The records of the Cottage and Small Industry Office, Banke show that 254 new factories were registered during the last fiscal year.

• The Nepali foreign employment sector observed Black Day today remembering the devastation of September 1, 2004 when angry mobs had looted and burnt around 325 outsourcing agencies after 12 Nepali migrant workers are killed in Iraq by a terrorist group.

• The government mobilized Rs 11.74 billion in revenue over the first month of 2009/10, posting a growth of 52 percent against the revenue collected in the same period last year.

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• The Nepal Stock Exchange (NEPSE) lost 6.4 points on Tuesday after falling 10.21 points on Monday. The sensitive index also decreased by 2.47 points. The banking sector lost the most by shedding 11.59 points followed by the finance sector, development bank sector and insurance sector which fell 7.56 points, 7 points and 0.93 point respectively.

• It has been a tumultuous homecoming for Nepal’s self-exiled former crown prince Paras, who returned home to Kathmandu Monday to find himself in the thick of reports in the Indian media claiming he was part of a fake currency racket run by underworld don Dawood Ibrahim.

• Five Nepalis have been arrested in Singapore along with three South Korean Nationals Sunday morning while attempting to smuggle drugs to Australia, Channel News Asia reported.

• Stringent measures are to be taken for checking electricity pilferage in Chitwan district.

• Nepal Electricity Authority (NEA), Chitwan branch has constituted an all-party committee for that purpose in accordance with the Electricity crisis alleviation directives formulated at the central level for reducing the electricity pilferage.

POLITICS:

Nothing much to show for 100 days

The CPN-UML-led coalition government has served its 100-day honeymoon period, with the Prime Minister Madhav Kumar Nepal rarely having to do anything more than attending formal programmes, receiving memorandums from sundry organisations and meeting delegations at his office.

On the political front, the PM failed to win the confidence of other parties, with the UCPN-Maoist declaring a nationwide protest against the government. Regarding the constitution-writing peace process, the government failed to make any meaningful headway.

Government did not take any measures to control the skyrocketting prices of the daily commodities. It tried to check black marketeering but failed to make any substantial progress.

Moreover, cabinet decisions amount to nothing substantial. Most of the decisions concerned approving the foreign trips of government officers, appointing their cronies in different government offices and other minor issues. Most of the ministers were glad going on foreign junkets.

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The UCPN-Maoist has termed the 100 days of government a complete failure. Speaking to The Himalayan Times, Maoist spokesperson Dina Nath Sharma said the government promoted confrontation rather than consensus during the period. However, Dr Prakash Saran Mahat, Minister for Energy, claimed that government’s 100 days had been a success. He said, “We took initiatives to deliver relief packages and ensure social security but continued House disruption has delayed the implementation of our plans.”

Many blame the government for politicising the bureaucracy. Two secretaries resigned from their posts, as they were miffed at the government for its choice of chief secretary.

However, in the government’s defence it must be said it had to contend with parliament disruption over the issue of CoAS reinstatement followed by the controversy over Vice President Paramananda Jha’s oath.

Thumbs up • Formation of special committee on army integration • Gradual improvement in security situation • Introduction of Special Security Plan • Appointment of secretaries • Process to appoint ambassadors begins • Process to form industrial security force begins

Thumbs down • Failed to take the main opposition party into confidence • Constitution writing process moving at snail’s pace • No immediate relief package for the people • No progress on formation of high-level mechanism • Failed to pass the budget • Cabinet is yet to take a complete shape

Source: The Himalayan Times

Date: 09/02/2009

CC starts its business on writing constitution

Constitutional Committee (CC) under the Constituent Assembly (CA) has resumed its normal business after three months of inactivity from Tuesday, following the election of its new chairperson.

The first meeting of the committee held under the chairmanship of its new leader Nilambar Acharya at Singha Durbar today decided to constitute a subcommittee to draft the concept paper and preliminary draft of the constitution.

The 19-member subcommittee has been entrusted to complete the homework within 21 days. The entrusted responsibilities to the subcommittee include drafting preamble, procedure of constitution amendment and provision on political parties among others.

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The committee includes four members from UCPN (Maoist), two each from Nepali Congress and CPN (UML) and one member each from the other smaller parties.

The CC had remained almost defunct after its chairman Madhav Kumar Nepal was elected prime minister following resignation from the then prime minister Pushpa Kamal Dahal.

Source: www.nepalnews.com


Gajurel for joint discussion

KATHMANDU, Sept 1 - The Unified CPN (Maoist) has floated one more condition to let the House run.

Maoist leader C. P. Gajurel on Tuesday said his party was ready to let the House run provided the ruling coalition partners agreed to discuss in parliament the issue of the vice president’s oat-taking along with the issue related to the president.

“We are not in favour of obstructing House proceedings forever. If parties in the ruling coalition come clean, we will let the House run, but they must agree to discuss the issues of the president and vice president in parliament,” said UCPN (Maoist) leader C. P. Gajurel at a programme in Kathmandu.

Maoist lawmakers now want Vice President Paramananda Jha’s issue to be discussed jointly in the House.

www.kantipuronline.com

CC forms crucial sub-panel

KATHMANDU, Sept 1 - The Constitutional Committee (CC) of the Constituent Assembly (CA) formed a 19-member sub-committee on Tuesday to prepare its concept paper for the new constitution. The sub-committee will prepare the concept paper and preliminary draft on issues that do not fall under the jurisdiction of other 10 thematic committees.

The CC should prepare its concept paper related to the provisions of the preamble, name of the constitution, declaration of emergency and provisions related to the political parties, among other issues. The sub-committee has to prepare the concept paper by Sept. 6 as per CA calendar of events.

The sub-committee's members include Dev Gurung, Barshaman Pun, Jayapuri Ghartimagar and Khimlal Devkota from UCPN (Maoist), Bimalendra Nidhi and

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Suprava Ghimire from Nepali Congress, Agni Kharel and Sapana Pradhan Malla from CPN-UML, Nilam Verma from Madhesi Janadhikar Forum (Loktantrik) and Upendra Yadav from Madhesi Janadhikar Forum. Other members are Hridayesh Tripathi from Tarai Madhes Loktantrik Party, Laxman Lal Karna from Nepal Sadbhawana Party, CP Mainali from CPN-ML, and Lokendra Bahadur Chand from Rastriya Prajatantra Party, among others.


PM hints at cutting annuities to VP Jha

Prime Minister Madhav Kumar Nepal has hinted at cutting all annuities and privileges that Paramananda Jha has been entitled to as the vice president of the country.

PM Nepal, while speaking to media persons in Biratnagar on Tuesday, said government has started legal consultation for curtailing his facilities following his refusal to retake oath in Nepali as ordered by the Supreme Court.

He further said he wishes for an amicable consensus over the row that does not demoralise anyone. “I have asked the legal experts to find a consensus solution acceptable to everyone,” he added.

Nepal claimed the continued obstruction of the parliament by opposition UCPN (Maoist) provided space for bigger controversy in the oath row. Nepal accepted that though Jha’s refusal on taking oath would not make any difference to the government, the Maoist behaviour would.

In another context, Nepal expressed satisfaction for acceptance by the Maoists in joining the reconstituted Army Integration Special Committee (AISC), thus enabling a way out for determining the future of Maoist combatants.



Jha made mockery of law, says Thapa

KASKI, Sept 1 - Rasritya Prajatantra Party - Nepal Chairman Kamal Thapa called Vice President Paramananda Jha’s defiance of the Supreme Court an outright disrespect of rule of law.

“The vice president defied the court’s order and now he shows reluctance to resign. He has not only flouted the law, but also showed extreme political treason,” he said in a press conference at Pokhara of Kaski district on Tuesday.

Thapa accused the vice president of acting on the behest of foreign powers. “A dangerous conspiracy is afoot to establish Hindi as an alternative language in Nepal

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and the vice president is part of it. This has put our national existence in grave danger,” he said.


NBA up in arms against CA move

The Nepal Bar Association today blamed the Constituent Assembly for trying to curtail the independence of judiciary in the new constitution to be promulgated by the CA and have threatened to launch a nationwide protest against the CA if it did not correct its move at the earliest. After holding a meeting of the advisory council today, the NBA made public its decision to protest CA’s move.

“We want the CA Committee on Judicial System to withdraw its decision, which attacks the independence of the judiciary,” NBA President Bishwo Kanta Mainali told mediapersons. “We will submit a memorandum to Prime Minister Madhav Kumar Nepal, Constituent Assembly Chairman Subas Chandra Nembang and the Chairman of the Constitutional Committee Nilambar Acharya soon. If our demand is not met, we will launch an agitation,” Mainali added.

The advisory council’s meeting termed the decision of the CA Committee, which decided to transfer the powers of the judiciary — the final authority to interpret the constitution, the judges’ appointment authority and selection of CJ from outside the serving judges’ — to the parliament. The prominent lawyers claim that transferring the authority of the judiciary to the parliament would be tantamount to encouraging autocracy.

Former attorney generals Sarvagya Ratna Tuladhar, Badri Bahadur Karki, Sushil Panta, Pawan Kumar Ojha and Yagya Murti Banjade and senior advocates Shree Hari Aryal, Narayan Ballav Panta, Harihar Dahal, Krishna Prasad Bhandari and Khem Narayan Dhungana came down against the CA committee’s move. The legal luminaries also blamed the NBA leadership for remaining mute spectators at a time when the independence of the judiciary was being attacked going against the doctrine of separation of power and checks and balances, which is vital to sustain democracy.

“We want NBA to protest the CA’s move,” senior advocate Aryal told The Himalayan Times. “We do not want a constitution that will attack the independence of the judiciary,” Aryal added. “If a Chief Justice can be appointed from outside the serving judges, why not appoint a commander-in-chief, chief secretary and Inspector General of Police in a similar fashion,” Aryal reasoned.


Date: 09/02/2009

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POLICY:

PAC grills secy, IGP

KATHMANDU, Sept 1 - Inspector General of Police Ramesh Chand Thakuri told the Public Accounts Committee (PAC) of the Legislature-Parliament on Tuesday that there was no irregularity while purchasing parka jackets for Nepal Police.

“There were only two bidders who met the criteria. We selected the lowest bidder, so there was no irregularity,” Thakuri said at the PAC meeting on Tuesday. Along with Thakuri, the committee grilled Home Secretary Govinda Kusum over alleged embezzlement while purchasing around 57,000 parka jackets for Nepal Police.

The police chief also charged that the media blew the issue out of proportion to defame him. Earlier, the Commission for the Investigation of Abuse of Authority (CIAA) had summoned Thakuri to inquire about the parka deal.

Last month, CIAA had raided the Police Headquarters and seized important documents related to the deal after a complaint was filed alleging financial irregularities worth Rs 50 million.


PM, leaders reiterate one-China policy

China invites Dahal

The visiting 17-member Chinese delegation led by politburo and central committee member of the Communist Party of China (CPC), Zhang Gaoli, held talks with President Dr Ram Baran Yadav, Prime Minister Madhav Kumar Nepal, Nepali Congress President G P Koirala and Chairman of CPN-UML Jhalanath Khanal on Tuesday. During the meetings, the two sides held talks on relations between the two countries and the leaders reiterated Nepal´s commitment to its one-China policy.

"The delegation expressed China´s happiness over the one-China policy and said that China is convinced that no anti-China activities will be allowed from Nepali soil," Rajan Bhattarai, the PM´s foreign affairs advisor, said.

Moreover, Gaoli is said to have expressed the Chinese government´s concern over the peace process and constitution-writing process in Nepal. He also expressed his government´s commitment to giving "all assistance" to Nepal´s peace process.

The PM is said to have requested an increase in Chinese annual assistance to Nepal. "A decision in this regard will be taken during the PM´s visit to China which will take place immediately after conclusion of the UN General Assembly session," Bhattarai added.

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The Chinese government had increased its annual assistance from 100 million Yuan to 150 million Yuan during then Foreign Minister Upendra Yadav´s China visit last year.

The leaders have also requested the delegation to look at increasing Chinese investment in various sectors. Gaoli was of the view that economic development in China will benefit Nepal, especially in the tourism and human resource sectors.

Earlier, Home Ministry Secretary Dr Govind Prasad Kusum signed a Memorandum of Understanding with Gaoli on increasing the quota for Nepali students at various medical colleges in China from 200 to 400. Similarly, China has also agreed to increase the number of medical scholarship from 10 to 20.

However, the Peace and Friendship Treaty proposed by China last year did not figure during the talks. "The issue of the treaty did not arise at all," Bhattarai added.

China invites Dahal

Meanwhile, the Chinese delegation has extended an invitation to Chairman of Unified CPN (Maoist) Pushpa Kamal Dahal to visit China. The delegation had met Dahal Monday and exchanged views on several issues concerning Nepal-China relations. The delegation had chosen to meet the Maoist chairman before meeting the prime minister and other cabinet ministers. China had proposed a new ´strategic treaty´ to the then Maoist-led government headed by Dahal last year. China proposed the new treaty in light of the changed political situation following the abolition of monarchy. The first Friendship Treaty between Nepal and China was signed in 1960.

Source: www.myrepublica.com

Date: 09/02/2009

China provides more student scholarships for Nepal in return for curbing free-

Tibet activities

China has increased the scholarships quotas for Nepali students who want to study in China.

A delegation of Communist Party of China (CPC), led by Zhang Gaoli, a member of Central Committee Political Bureau of Communist Party of China (CPC) and Party chief of China's Tianjin municipality met Prime Minister Madhav Kumar Nepal at the latter's residence today and signed an agreement to that effect.

During the meeting, the Chinese delegation is also learnt to have asked PM Nepal to take tough measures to stop the growing anti-Chinese activities in Nepal.

In response, the PM assured the visiting delegation that Nepal is committed to the 'One China policy' - which recognizes Tibet as an integral part of China - and that it will never allow its territory to be used against its neighbors.

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Soon after the meeting, the Chinese delegation also met Nepali Congress President Girija Prasad Koirala at the latter's residence and discussed the ongoing constitution drafting and peace process.

The Chinese team is expected to meet President Dr Ram Baran Yadav shortly.

The Chinese delegation arrived in Kathmandu on Monday for a good will visit at the invitation of the government of Nepal

Meanwhile, issuing a 'media advisory' today, the Embassy of India in Kathmandu said that it would be providing Rs 26.4 million to Shree Manthali High Secondary School, Manthali-2, Ramechhap and Rs 25.2 million to Shree B.P Koirala Secondary School, Sapahi-7, Dhanusha.

The MoUs to provide the afore-mentioned assistance will be signed in a ceremony to be held at the Indian embassy premises on Wednesday, according to the statement.



AISC resumes works, extends JMCC's duration by 3 months

After a hiatus of four months, the meeting of the Army Integration Special Committee (AISC) was held Tuesday under the chairmanship of Prime Minister Madhav Kumar Nepal

The meeting held at the Prime Minister's Office (PMO) in Singh Durbar decided to extend the duration of the Joint Monitoring Coordination Committee (JMCC), which monitors the Management of Arms and Armies between the Nepal Army and the Maoist army, by three more months.

Issues on management, integration and rehabilitation of People's Liberation Army (PLA) combatants were discussed at the meeting of AISC, it has been learnt.

Speaking to journalists after the meeting, Barsha Man Pun, one of two Maoist representatives in AISC, said that the committee has resumed its work from today and that it will move ahead on its mandate in a serious manner.

"Our party is seriously committed to the work of AISC and will not cause any obstruction in it. Any differences we have with other members of AISC will be amicably sorted out," Pun assured.

The next meeting of the AISC has been scheduled for September 6, 2009.

AISC met for the first time after the formation of the UML-led government.

The committee had remained incomplete for a long time after erstwhile Prime Minister Pushpa Kamal Dahal stepped down in May.

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Although a cabinet meeting on July 15 had re-constituted AISC under the chairmanship of PM Nepal, the Maoists had not accepted it.

The (Maoists) had been demanding for either continuation of Dahal as the committee's chairman or 50 percent berth to the Maoists in the committee.

Today's meeting has been made possible only after chairman of Unified CPN (Maoist) Pushpa Kamal Dahal called Prime Minister Madhav Kumar Nepal Monday and expressed consent for the re-constitution of AISC.

However, Maoist leaders have not yet confirmed the reconstitution of the committee independently. The newly constituted committee includes PM Nepal as the chairman, and Janardan Sharma and Barsha Man Pun, from the UCPN (Maoist), Ram Sharan Mahat and Minendra Rijal from Nepali Congress, Ishwor Pokhrel from the CPN (UML), Jaya Prakash Gupta from Madhesi Janadhikar Forum, Sharat Singh Bhandari from Madhesi Jandhikar Forum-Democratic and Mahendra Yadav from Terai Madesh Loktantrik Party (TMLP) as members.

On Monday, the Maoists had announced they would boycott all formal programmes attended by the PM from Monday as part of their ongoing agitation demanding for civil supremacy.



Nepali PM reiterates managing combatants in 6 months

KATHMANDU, Sept. 2 (Xinhua) -- Nepali Prime Minister Madhav Kumar Nepal Tuesday said that the issue of "integrating" the combatants of the Unified Communist Party of Nepal (Maoist) (UCPN-M) will be managed within 6 months, state-run daily The Rising Nepal reported on Wednesday.

Prime Minister M.K. Nepal said the reconstitution of the Army Integration Special Committee and its first meeting had paved the way to accelerate the army "integration" process.

"It was an important achievement that all the political parties reached a consensus for reforming the special committee," Prime Minister Nepal told journalists on Tuesday.

Premier Nepal said that the special committee's first meeting held in Kathmandu on Tuesday morning decided to complete the process of "integrating" the Maoist combatants within six months. "I am very serious about integrating the armies, as it is one of the major issues of the country," he said.

The committee was reconstituted under the chairmanship of the Prime Minister on Monday.

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He added that the committee would take additional decisions concerning the issue in the near future. He, however, did not specify what type of decisions would be taken.

The meeting of the Army Integration Special Committee (AISC) on Tuesday also extended the tenure of the Technical Committee under it for three more months.

The meeting was held in Prime Minister Madhav Kumar Nepal's office in Singha Durbar, a day after it gained a full shape following the formation of the government led by the Communist Party of Nepal (Unified Marxist-Leninist) (CPN-UML) in May.

The AISC got its full shape with the main opposition, UCPN-M, sending its representatives for the committee.

The AISC had not been able to hold even a single meeting for the last three months due to differences between the ruling and main opposition parties on its reconstitution.

Headed by Prime Minister Nepal, the 9-member AISC is comprised of Janardan Sharma and Barsha Man Pun from the UCPN-M, Ram Sharan Mahat and Minendra Rijal from the Nepali Congress, Ishwor Pokharel from the CPN-UML, Jaya Praksah Gupta from the Madhesi People's Rights Forum, Sharad Singh Bhandari from the Madhesi People's Right Forum (Democratic) and Mahendra Yadav from the Terai Madhesh Democratic Party.

Barsha Man Pun, AISC member representing the UCPN-M, said that all the differences between his party and the government on the formation of the AISC would be discussed in the AISC itself. "We have decided to join the AISC to prove that we are not obstructing any processes for integration of the armies," Pun said on Tuesday.

http://news.xinhuanet.com/english

EEC-Nepal, LCCI ink agreement

European Economic Chamber (EEC-Nepal) and London Chambers of Commerce and Industry (LCCI) on August 26 signed an agreement of cooperation in London.

On the behalf of the EEC-Nepal, its president Dibya Mani Raj Bhandari and deputy chief executive of LCCI Peter Bishop inked the agreement.

The agreement is zeroed in on to promote and strengthen the development of trade relations and cooperation between member companies of both the chambers so as to pave the way for the promotion of Nepal and United Kingdom trade, investment and technology transfers.

Meanwhile, Danish Federation of Small and Medium Sized Enterprises and Federation of SMEs (FSMEs) Nepal took part in a meeting in Copenhagen, Denmark

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under EU-funded ECIBON Project. The project aims to enhancing the capacity of Nepali Intermediary Business Organizations (IBOs).



BUSINESS & ECONOMY:

Rise in cost but with huge benefits

Premium down for private vehicles

Mandatory insurance of vehicles has increased vehicle operation cost for the owners, but Insurance Board (IB) has clarified that actual rise in cost is less than the extent by which the third party insurance premium was hiked.

In case of private vehicles, the cost has, in fact, gone down compared to the past. "The premium has gone down mainly because we have tried to rationalize the rate so as to support all to come under compulsory insurance rule," said Shekhar Kumar Aryal, senior IB official.

For instance, the board has raised the cost of third party premium by Rs 500 to Rs 700 in case of a bike. But actual additional financial burden for customers will not be Rs 500 because the board has provisioned the companies to pledge 10 percent direct business discount on the basic premium that stands at 1.5 percent of the value.

"So the actual rise in cost will vary greatly with the value of a bike. The expensive the bike, higher will be the discount. Hence, net impact will be very nominal”," said Aryal, adding that the net rise in cost will be a few hundred rupees.

For this additional cost, the customer will not only get third party insurance coverage of Rs 500,000, but will also get personal accident benefit of Rs 100,000 for rider as well as pillion rider, something which was not heard of so far.

"And that benefit has been incorporated in the system without additional charges," said Aryal. Also, under the new system, the owner will receive medical cost of Rs 5,000, which was Rs 2,000 so far, he added.

In case of private vehicles, the new directive has slashed the rate for basic premium itself. On top of that, the customers will get 10 percent direct business discount. For instance, in case of cars of more than 1,600cc, insurance companies will now calculate basic insurance premium at the rate of 1.7 percent for the first Rs 2 million and 2 percent for the remaining amount whereas it was flat 1.85 percent for the first Rs 2 million and 2.25 percent for the remaining amount in the past.

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"If your car of more than 1600 CC is valued at Rs 2 million, this change will directly reduce basic premium cost by an average of Rs 2,800 compared to the past," said the official.

Against this rise, the vehicle owners will enjoy third party insurance of half a million rupees and also the insurance coverage for the driver and four passengers.

Apart from these changes, IB has also reduced the premium rate for riot, strike and malicious damage to 0.15 percent of the insured sum from 0.25 percent of the past (down by 40 percent) and also lowered premium rate for the insurance of drivers and passengers in case of public transportation. The cost of insurance, however, has gone up in case of passenger vehicles and goods carriers.

"Since mandatory insurance and half a million rupees worth of third party insurance benefit is a new beginning in Nepal, we have tried to put down fewer burdens on the customers," stated Aryal.

With the new rule that compels all vehicles plying on the road to buy insurance policy, the government estimates vehicle insurance market to more than double to Rs 3 billion over the next one year. IB has estimated it to generate additional revenue of about Rs 390 million to the government.


Date: 09/02/2009

Lure of lucre draws youths to risky Afghanistan

Not only developed countries, even poor country like Afghanistan has also begun to lure Nepali youths seeking greener pastures abroad. They are risking their lives to work in the country battered by terrorism for handsome remuneration that employers offer to them.

Thanks to higher pay offered by private companies and UN agencies, the numbers of Nepali workers leaving for the war-torn SAARC nation has been significantly increasing over a couple of years. According to the Department of Foreign Employment (DoFE), the number increased to 1,538 persons in 2008/09 fiscal year from a nominal 32 persons in 2005/06 fiscal year. However, the number of workers heading to Afghanistan through institutional channel is very low as compared to those entering the country through individual relations.

Data shows that out of the total 1,538 Nepalis who left for Afghanistan during the period, 1,385 workers got their jobs through individual relations and manpower agencies arranged jobs to only 153 workers. Nepali workers started entering the impoverished Islamic state from 2002/03 to work in the construction sector and other rehabilitation works run by private companies and the United Nations. Most of Nepali ex-Gurkha soldiers are employed in UN-affiliated agencies as security guards. According to the DoFE, 12 Nepali workers left for Afghanistan through individual relations during mid-July till mid-August.

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Universal Connection Pvt Ltd is one of the Nepali agencies than send Nepali ex-Gurkhas through UK and Singapore-based IDG Securities to United Nations Assistance Mission in Afghanistan (UNAMA) and United Nations Development Program (UNDP) to work as security guards. However, Padam Upadhyaya, managing director of the company, declined to make comments about the demands of ex-Gurkhas in Afghanistan.

Bed Prakash Lekhak, under secretary at the Ministry of Labor and Transport Management, told myrepublica.com that they have been giving permissions only to workers who want to go Afghanistan through manpower agencies. "We have not given individual permissions," Lekhak said. He, however, added that individual permissions are granted to workers, who managed to enter Afghanistan via other countries, including India, and returned home on leave.

UN bodies in Afghanistan demand Nepali ex-Gurkhas to work as security guards. Workers getting opportunities to work in UN agencies through institutional process aren´t required to pay commission to brokers and get better pay than those entering the country through personal contacts. The paycheck of Nepali workers range from $1,000 to 2,000 depending on their skills.

Lekhak said UNAMA and UNDP have recently demanded 65 and 50 Nepali ex-Gurkha security guards respectively. Universal Connection applied at DoFE for prior approval to send ex-Gurkhas to Afghanistan on July 15.

Nepali manpower agents say increasing number of Nepali workers are heading to Afghanistan because of higher earnings. Gyanu Gaire, general secretary of Nepal Association of Foreign Employment Agencies (NAFEA), said the number of Nepali workers heading to Afghanistan was increasing due to lucrative remuneration and less restriction by the government. Gaire also said Nepali workers are in demand to work in security camps of multinational force, caterers, security firms and cleaners


Date: 09/02/2009

NADA auto show concludes

KATHMANDU, Sept 1 - Exhibitors at the fifth NADA Auto Show 2009 have said that the event has been successful in terms of attracting potential customers and the bookings received for family cars.

More than 30,000 visited the auto show that concluded on Tuesday. "The show has been a grand success," said Deepak Thapa, a coordinator of the five-day show. "The response from the visitors was beyond our expectation."

A total of 46 companies of four wheelers, two wheelers and auto accessories had participated in the event jointly organised by Nepal Automobile Dealers' Association (NADA) and Global Event Management Services (GEMS).

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But top auto brands like KIA, Mahindra, Toyota and Maruti were absent in the show due to lack of space and valuation problem at the customs. However, other leading four wheelers brands such as Hyundai, Indica, Skoda, Nissan, Mazda, Tata-Safari, Zoyte, Honda, Honda Civic were present at the show.

"It would have been better if we were able to showcase other latest models of vehicles in the show," said Thapa. Around 300 vehicles imported from third country have been stopped by the government in Birgunj and Kolkata citing the valuation issue.

According to exhibitors, the show has been fruitful for the Chinese and Indian vehicles. The dealers of Hyundai for Nepal have claimed that i10, i20 and Santro have received the highest bookings. Similarly, Chinese suv Tiggo, Honda Jazz attracted many potential customers. Laxmi Intercontinental had launched i20, the latest model from Hyundai during the auto show.

The demand for four wheelers has increased in recent years because of easy banking finance and increasing incomes of middle class.

Same was the case of two wheelers exhibitors. They said that the show had received much better response from the visitor this time around.

"Around 25 percent of visitors in my stall were genuine potential customers," said Raju Bhetwal, chief general manager of the Ganesh Enterprises Pvt. Ltd, which has introduced Suzuki B-King priced at Rs. 2.35 million.


Hotel bookings go up

KATHMANDU, Sept 1 - Hotel bookings for the upcoming tourist season September to March has increased. "Hotel bookings have gone up by said Bharat Joshi, marketing director of the Hotel Yak & Yeti.”We're encouraged by the booking."

The encouraging reservations give indication that star hotels will have more international guests compared to last year. "The new season looks rosy," said Raju Bikram Shah, senior general manager of the Hotel Shangri-la. "The occupancy rate for October-November is 85 percent."

"We have received very good response from tourists making reservation for this season," said Joshi. "With the number of international seminars increasing, the hotel booking is very good."

There are two major programmes related to tourism being organised in September. The Non-Resident Nepalis (NRN) Conference is also going to take place from Oct. 26.

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Joshi said that bookings at the Hotel Yak & Yeti were around 70 percent and most of the tourists making reservations were from France. "So far, 800 French tourists have made reservations with us," he added. The hotel has 270 rooms including deluxe rooms. According to Joshi, bookings improved one month before the start of the new tourist season. Om Shrestha, executive director of the Hotel Association Nepal (HAN) said that reduced road obstructions and other violent activities have created a favorable atmosphere for receiving good reservations.

"If the country does not face turmoil like in the past, the Nepal Tourism Year 2011 will be successful," said Shrestha. "The hotel booking rate may increase by 20 percent as a whole by the end of October." There are 1,200 hotels across the country with a capacity of 18,000 rooms and 30,000 beds.

The government in last year's budget had decided to designate 2011 as Nepal Tourism Year with the aim of bringing one million tourists to the country. As per the Nepal Tourism Board (NTB)'s report, tourist arrivals by air increased by 4 percent in 2008 with the total number of tourists in 2008 crossing the 500,000 mark.

With the booking cancellation rate decreasing this year, there are less chances of bearing loss by hotel entrepreneurs. "This year, bookings have increased and the chances of cancellation have also come down," said Amir Kumar Pradhananga, front office manager of the Everest Hotel. He said that even if tourists cancelled their bookings, the rooms would be provided to other tourists in the waiting list.

Most of the tourists making reservations with the Everest Hotel are from Japan followed by tourists from the EU countries. Pradhananga said that the current room booking status of the hotel was 80 percent.

Not only five-star hotels but four-star hotels are also getting good reservations for this season.

"This year, bookings have increase by 7 percent compared to the bookings of the same period last year," said Nabin Rawat, front office supervisor of the Hotel Vaishali.

He said that the tourists making reservations at the hotel were from the EU countries, the U.S.A. and Japan. The average room rate for October-November has also gone up.


Foreign tourist arrivals registering growth

August saw a robust increase in tourists arriving from China. According to Tribhuvan International Airport (TIA) Immigration Office figures, visitor arrivals this August compared to last August increased by 5 per cent to 27,676.

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There was growth of 87 per cent in tourist arrivals from China. Arrivals from Japan, Singapore, South Korea and Thailand also increased by 27 per cent, 44 per cent, 21 per cent and 9 per cent, respectively. The Asian markets to decline this month were Malaysia (13 per cent) and Chinese Taipei (21 per cent). In aggregate, the Asian segment registered a positive growth of 26 per cent.

In the SAARC region, arrivals from Bangladesh and Pakistan witnessed positive growth of 23 per cent and 22 per cent, respectively. However, arrivals from India decreased by 10 per cent compared to last August. Sri Lanka also witnessed a negative growth of 1 per cent.

An overall positive growth of 11 per cent was seen in the European markets with arrivals from France up by 9 per cent, Germany 34 per cent, The Netherlands 20 per cent, Spain 9 per cent and Denmark 50 per cent. The only market to decline in this month was the UK by 24 per cent.

Tourist arrivals from New Zealand and Canada also registered good growth of 22 per cent and 88 per cent, respectively. Arrivals from the United States remained stable while the Australian market declined by 4 per cent compared to last August. This is the third consecutive month that Nepal has witnessed positive growth in international tourist arrivals. Recovery in the arrivals to Nepal in the beginning of the second half of 2009 is in line with the marginal improvement observed in some of the economies.

Moreover, it reflects the rebounding confidence of international tour operators and resilient nature of tourism sector.

A total of 33,685 foreign tourists departed from TIA in August 2009 — up by 20 per cent compared to last August. The number of Nepalese arrivals stood at 46,852 and departures at 51,653.


Date: 09/02/2009

Banke environment business-friendly

Nepalgunj, Sept 1 - Improving peace and security is giving a boost to the establishment of new factories in Banke district. The records of the Cottage and Small Industry Office, Banke show that 254 new factories were registered during the last fiscal year.

The number, according to the office, is higher than that of the previous year. The increasing number of new factories is evidence that the environment is business-friendly in the district.

Among the registered factories, 116 are manufacturing, five agricultural, 16 tourism-related and 72 service industries. The encouraging part is that even those factories

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whose licenses were annulled citing their failure to renew them have registered themselves under new names.

Many factories were closed during the insurgency period and they are resuming operation bolstered by the improving peace and security situation in the district, the small industry office said. The office provided training related to developing self-employment skills to 342 persons last year.


Outsourcers slip into Black Day mode

The Nepali foreign employment sector observed Black Day today remembering the devastation of September 1, 2004 when angry mobs had looted and burnt around 325 outsourcing agencies after 12 Nepali migrant workers are killed in Iraq by a terrorist group.

Outsourcing agency owners and officers sported black armbands. Foreign employment agencies stayed closed for the day, said Nepal Association of Foreign Employment Agencies (NAFEA) general secrtary Gyanu Gaire.

Executive members of NAFEA meet Minister for Labour and Transport Management (MoLTM) Mohammed Abdul Alam and urged him to release the investigation report and provide compensation to outsourcing agencies. “The government must release the report,” said NAFEA acting president Kamal Dev Malla. According to NAFEA, the mobs destroyed property worth to Rs 2 billion of outsourcing agencies based in downtown Kathmandu and Patan.

The then government had formed an investigation commission under the chairmanship of former Supreme Court judge Top Bahadur Rayamajhi. However, till date the report has not been released. A MoLTM source claimed that the investigation had pointed out that security failure was the cause of rampant destruction of manpower agencies’ offices, and so the government was reluctant to release the report. Minister Alam assured NAFEA executives that he would work to solve their problems. “I will genuinely work to release the report,” he said, “I will talk to the Prime Minister about it. You should get compensation,” he said addressing the team in his office.

NAFEA also asked Minister Alam to stop transmission of unauthorized advertisements in the Nepali media. “FMs radio stations outside Kathmandu Valley are transmitting foreign employment advertisements without authorization of DoFE,” said Gaire. The Foreign Employment Act strictly prohibits advertisements without permission from the department.

The outsourcers’ protest paralyzed the whole foreign employment sector. The Department of Foreign Employment (DoFE) do not issued even a single permit today. “There was no file from outsourcing agencies today, so we concentrated on internal works,” said DoFE director Uma Shankar Joshi.

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Date: 09/02/2009

MARKET:

Revenue collection up by 52pc

The government mobilized Rs 11.74 billion in revenue over the first month of 2009/10, posting a growth of 52 percent against the revenue collected in the same period last year.

Officials attribute higher collection rate, which exceeds the target set for the month by 20 percent, to the latest change in tariff, new initiatives to bring in new taxpayers and strong measures to plug in leakages.

As usual, value added tax (VAT) contributed biggest chunk in the collection recorded for the period, even though its growth rate of 28 percent was just above the target. VAT generated Rs 4.34 billion in revenue during the month, shows the statistics of Ministry of Finance (MoF).

Customs contributed Rs 2.36 billion in revenue, which was a growth of 63 percent than what it generated last year.

Collections from excise duty, under which high extent of leakage is suspected, interestingly, more than doubled during the period. Excise contributed Rs 1.63 billion in revenue during the month.

“New monitoring mechanism, increase in excise rates, and integration of excise administration in the overall revenue administration mainly contributed the growth,” a report of the Inland Revenue Department states.

Income tax was the fourth largest contributor of revenue during the period. According to the statistics, the government mobilized Rs 1.49 billion in revenue from income tax during the first month of the 2008/09 fiscal year. The government also collected about Rs 10 lakh in revenue from the education service tax.

“The collection for the first month has been really encouraging. Full-fledged implementation of tax ID and new policy measures will definitely enable us to meet the target easily,” said a senior IRD official.

The government has set a target to mobilize Rs 176.50 billion in revenue in current fiscal year, which is a rise of some 26 percent over what it mobilized in the preceding fiscal year.

Source: www.myrepublica.com Date: 09/02/2009

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NEPSE drops again

KATHMANDU, Sept 1 - The Nepal Stock Exchange (NEPSE) lost 6.4 points on Tuesday after falling 10.21 points on Monday. The sensitive index also decreased by 2.47 points.

A majority of the sub-indices on NEPSE dropped on Tuesday. The banking sector lost the most by shedding 11.59 points followed by the finance sector, development bank sector and insurance sector which fell 7.56 points, 7 points and 0.93 point respectively. The hydropower sector was the only one to witness an increase on the floor by gaining 4.31 points.

The share market witnessed a total turnover of Rs. 105.17 million with 128,922 shares being traded. Shares of 62 companies changed hands on NEPSE.

The top five winners on NEPSE were Bhajuratna Finance Company and saving with a 8.16 percent rise in its stock price followed by NIDC Capital Markets, Prudential Bittiya Sansthan, Kaski Finance and Subechha Bikas Bank.

Similarly, the top five losers on Tuesday were IME Financial Institution which fell by 6.3 percent followed by Kuber Merchant Bittiya Sansthan, Prabhu Finance Company, Pokhara Finance and Nepal SBI Bank.


GENERAL:

Paras returns to Nepal amid fake currency 'link' reports

KATHMANDU: It has been a tumultuous homecoming for Nepal’s self-exiled former crown prince Paras, who returned home to Kathmandu Monday to find himself in the thick of reports in the Indian media claiming he was part of a fake currency racket run by underworld don Dawood Ibrahim.

The 38-year-old, who was originally expected to arrive in Kathmandu Friday, however returned to Nepal Monday amidst fast-flying allegations in India that three

people, arrested in India with fake Indian currency, had disclosed links with Nepal’s former royal family.

However, the ponytailed former prince kept a low profile with the Nepali media ignoring his return as it had ignored his departure. The tabloids however have been speculating on the reason for his frequent trips to Nepal since his exit in high dudgeon last year after monarchy was formally abolished and his father, deposed king Gyanendra, was ordered to vacate the royal palace. Since Nepal became a republic last year, Paras has been living in Singapore, where he claims to be doing his own grocery shopping and cooking and thriving on it.

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There have been reports of marital discord between Paras, known to be headstrong with a violent temper and fondness for partying, drinks and women and his wife, the former crown princess Himani. Though she had followed him to Singapore with their three children and enrolled them in schools there, she had returned to Kathmandu with the children after some time. Paras claims to be keen on founding a political party in Nepal and contesting elections.

While there was no immediate reaction from the former royals to the reports in the Indian media, Gyanendra’s aides however expressed outrage, calling them baseless propaganda. Royalists said that in the past too, Nepal’s royal family had been wrongly blamed for trouble in India, including the assassination of Rajiv Gandhi, which, India's Research and Analysis Wing had said could have been funded by the then Nepali queen Aishwarya.

http://timesofindia.indiatimes.com/news

Five Nepalis arrested in S'pore for drug trafficking

Five Nepalis have been arrested in Singapore along with three South Korean Nationals Sunday morning while attempting to smuggle drugs to Australia, Channel News Asia reported.

A joint team of Central Narcotics Bureau (CNB), Singapore and the Singaporean Police Intelligence Department (PID) officers arrested the five Nepali nationals after they discovered about 2 kg of Heroin No.4 in the shoes of three South Korean at Changi Airport.

The arrested could face death penalty if convicted, the report says.



Electricity pilferage to be checked

Chitwan, Sept 1 - Stringent measures are to be taken for checking electricity pilferage in Chitwan district.

Nepal Electricity Authority (NEA), Chitwan branch has constituted an all-party committee for that purpose in accordance with the Electricity crisis alleviation directives formulated at the central level for reducing the electricity pilferage.

The all-party committee constituted under the convenorship of Chief District Officer of Chitwan, Maheshwar Neupane, will carry out investigations on the theft of electricity and take action against people found involved in electricity theft. All the political parties have expressed commitment of their support in this task.

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NEA Chitwan has said it is yet to realize Rs. 330 million in electricity dues from different bodies.

Forty thousand of the total 65,000 clients of NEA in the district are yet to clear their electricity dues. According to a data, 75 per cent of electricity theft takes place in the rural area in Chitwan.


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