Real estate downslide ends
eKantipur.com, 18-Aug-2007
by Milan Mani Sharma
The downslide in the real estate business seems to have halted, and there are even signs it is gradually picking up again.
Realty business plummeted by about 15 percent during the fiscal year 2005/06 but land prices have gone up in a range of 5 to 10 percent in some parts of the Valley over the year, according to real estate dealers.
The annual report of the Nepal Real Estate Dealers Association shows that prices of land along the Araniko Highway up to Bhaktapur and in the city areas have risen in a range of Rs 10,000 to Rs 25,000 per ana. In the outskirts, the prices have not gone up, but they have not gone down either.
"The present rise is a natural rate of growth," said Raju Niraula, proprietor of Om Sai Property Dealer. He attributed the growth to the political instability, tarai unrest, continued insecurity in rural areas and rising remittance inflow. In the meantime, the real estate cycle also may have begun to turn upwards.
However, Rup Narayan Bhattarai, chief of the Land Revenue Office (LRO), Chabahil, doesn't buy the argument that real state has begun to turn upwards. He argues that the nominal rise in prices of land in the Valley is due to big property dealers' resistance to plummeting prices. "Property dealers, who hold a fair chunk of land and largely determine the movement of prices, have withstood the downward pressure on land for the time being."
He argues that the low volume of real estate transactions does not justify claims that the real estate downslide has stopped. Figures at some of the land revenue offices tend to support this argument.
Officials at the five LROs in the Valley said that the volume of transactions at present is far less than that recorded in 2005/06.
In fiscal year 2006/07, land registrations went down to 81,740 from 95,900 in 2005/06. It also dragged the revenue collection figure down by 2.5 percent to Rs 1.56 billion in 2006/07.
Except for the Dillibazar LRO, none of the LROs in the Valley met the annual revenue target, which was fixed at about 10 percent over the huge growth recorded the previous fiscal year.
"Transactions were down, inquiries had plummeted, lending institutions were wary and were putting pressure on dealers, and most importantly, interest dues were mounting fast. The situation was so tough, dealers would have succumbed had the initial euphoria lasted for another quarter," said Niraula.
What supports the "worst-is-gone" theory in the real estate sector then? "On year to year comparison last fiscal year was far worse than 2005/06, but things have now improved slightly compared to last year," said Narayan Suwal, accountant at LRO, Bhaktapur.
The real estate dealers also argue that the ongoing unrest in the Tarai, continuing political instability, and rising remittance flow have put a break on the downhill slide, if not reversed the trend gradually.
Dealers said that some 5 percent of new transactions recorded at present have been by people of hill origin but currently residing in the tarai.
Collateral for financial institutions and individual lenders and also the partition of land among siblings make up another 40 percent of present transactions, according to Janaki Ram Sharma, chief of LRO, Kalanki.
Monday, September 03, 2007
Parliament passes NRN bill
Parliament passes NRN bill
Nepalnews.com, 13-Aug-2007
The Legislature Parliament has passed the much awaited Non Resident Nepali (NRN) bill on Monday.
The bill defined NRN as those Nepalis living in foreign land for more than two years, either holding Nepali citizenship or foreign citizenship. Earlier, the draft bill had proposed the period of 182 days. However, Nepalis living in SAARC member countries are not entitled to be categorized as NRN.
The new bill has paved way for registration of the organisation in Nepal, which had been one of the major demands of the NRN Association.
The bill has provisioned for issuance of NRN identity cards to those entitled. The card is valid till the expiry of the visa the person holds, not exceeding 10 years, for Nepali nationals living abroad, while Nepalis having foreign citizenship will have to renew the card every two years.
A person would continue to be a NRN even if he stays in Nepal or owns a business here.
Any company in which a NRN has more than 50 percent share can invest in projects or sectors that the government opens for foreign investment.
Presenting the bill at the house, Foreign Minister Sahana Pradhan said the NRN bill has been brought to encourage the Nepali Diaspora for development of the country.
NRN Association had demanded that the bill be passed before its third convention scheduled for October 15-17 in Kathmandu.
Nepalnews.com, 13-Aug-2007
The Legislature Parliament has passed the much awaited Non Resident Nepali (NRN) bill on Monday.
The bill defined NRN as those Nepalis living in foreign land for more than two years, either holding Nepali citizenship or foreign citizenship. Earlier, the draft bill had proposed the period of 182 days. However, Nepalis living in SAARC member countries are not entitled to be categorized as NRN.
The new bill has paved way for registration of the organisation in Nepal, which had been one of the major demands of the NRN Association.
The bill has provisioned for issuance of NRN identity cards to those entitled. The card is valid till the expiry of the visa the person holds, not exceeding 10 years, for Nepali nationals living abroad, while Nepalis having foreign citizenship will have to renew the card every two years.
A person would continue to be a NRN even if he stays in Nepal or owns a business here.
Any company in which a NRN has more than 50 percent share can invest in projects or sectors that the government opens for foreign investment.
Presenting the bill at the house, Foreign Minister Sahana Pradhan said the NRN bill has been brought to encourage the Nepali Diaspora for development of the country.
NRN Association had demanded that the bill be passed before its third convention scheduled for October 15-17 in Kathmandu.
Morang-Sunsari corridor to become SEZ
Morang-Sunsari corridor to become SEZ
eKantipur.com, 11-Aug-2007
The government is preparing to declare Morang-Sunsari industrial corridor as a special economic zone (SEZ) and extend facilities to industries accordingly, said Finance Minister Dr Ram Sharan Mahat.
"The government has already moved ahead in this regard. Entrepreneurs can remain assured that the announcement on it will come soon," said he.
The Finance Minister (FM) made the commitment to a delegation of industrialists from Morang, who met him on Friday demanding that the government recognize the Morang-Sunsari corridor as the industrial area and extend facilities to promote it.
Mahesh Jaju, an entrepreneur who was also in the delegation, told the Post that the FM also informed the delegation that Prime Minister Girija Prasad Koirala has already directed him to expedite the process toward granting facilities to the industries in the corridor.
"The government will soon declare the corridor as an SEZ," said Jaju.
Once declared, industries in the corridor will enjoy income tax holiday for 5 years, exemption on customs duty, VAT and excise duty on the import of raw materials and special discount on rental charge, according to entrepreneurs.
Most importantly, the announcement will prevent workers from disturbing the manufacturing process although they will be allowed to organize under various trade unions.
President of Nepali Congress Morang district, Amrit Aryal, had also submitted a memorandum to the PM last week, when he was in the home town, seeking recognition of the corridor as a special economic zone.
Entrepreneurs had also warned the government of shutting down the industries if it ignored the establishment of an SEZ in the area.
Immediately after receiving the memorandum, the PM had directed the finance minister to work for announcing the corridor as an SEZ and providing facilities to investors accordingly.
eKantipur.com, 11-Aug-2007
The government is preparing to declare Morang-Sunsari industrial corridor as a special economic zone (SEZ) and extend facilities to industries accordingly, said Finance Minister Dr Ram Sharan Mahat.
"The government has already moved ahead in this regard. Entrepreneurs can remain assured that the announcement on it will come soon," said he.
The Finance Minister (FM) made the commitment to a delegation of industrialists from Morang, who met him on Friday demanding that the government recognize the Morang-Sunsari corridor as the industrial area and extend facilities to promote it.
Mahesh Jaju, an entrepreneur who was also in the delegation, told the Post that the FM also informed the delegation that Prime Minister Girija Prasad Koirala has already directed him to expedite the process toward granting facilities to the industries in the corridor.
"The government will soon declare the corridor as an SEZ," said Jaju.
Once declared, industries in the corridor will enjoy income tax holiday for 5 years, exemption on customs duty, VAT and excise duty on the import of raw materials and special discount on rental charge, according to entrepreneurs.
Most importantly, the announcement will prevent workers from disturbing the manufacturing process although they will be allowed to organize under various trade unions.
President of Nepali Congress Morang district, Amrit Aryal, had also submitted a memorandum to the PM last week, when he was in the home town, seeking recognition of the corridor as a special economic zone.
Entrepreneurs had also warned the government of shutting down the industries if it ignored the establishment of an SEZ in the area.
Immediately after receiving the memorandum, the PM had directed the finance minister to work for announcing the corridor as an SEZ and providing facilities to investors accordingly.
New airlines flock to Nepal as tourism booms
New airlines flock to Nepal as tourism booms
eKantipur.com, 11-Aug-2007
By Krishna Regmi
Nepal is fast turning into a hot destination for international airlines while the national flag carrier is reeling under lack of aircraft. Three foreign airlines are on the verge of beginning operations, while five more already operating in Nepal are planning to increase frequency.
Orient Thai Airlines, a Thailand based airline, is preparing to fly between Kathmandu with Bangkok from August 19.
Etihad Airlines, the national airline of the United Arab Emirates, and Silk Air, a subsidiary of Singapore Airlines have already announced commencement of flights to Kathmandu from October.
"We have received an application from Orient Thai asking schedule approval for thrice-a-week flights on the Kathmandu-Bangkok route from August 19," said an official at the Civil Aviation Authority of Nepal (CAAN). The airline will soon get the green signal.
With 140-seater Airbus 320 aircraft, Silk Air is scheduled to operate thrice-a-week flights on the Kathmandu-Singapore route. Etihad will operate four-days-a-week flights on the Kathmandu-Abu Dhabi sector.
Etihad will use Airbus A330-200 configured to carry 262 passengers, with 22 business and 240 economy class seats.
Thai Airlines, Qatar Airways, China Southern, Air Arabia, and Korean Air are planning to increase flight frequency to Nepal.
With robust growth in tourist arrivals to Nepal and more Nepalis traveling abroad, foreign airlines are jockeying to tap this market.
Tourist arrivals grew by a staggering 35.6 percent to 193,211 in the first seven months this year. Nepalis working abroad are also on a steady rise, with around 200,000 leaving for foreign employment last year alone. A decade ago only around 3,000 Nepalis left for jobs abroad.
Thai Airways plans to add three flights a week and is awaiting the green signal from the Nepali authorities. Qatar Airways has been requesting the government to allow it to run seven extra flights per week between Doha and Kathmandu. Korean Air also has requested the CAAN to let it to operate an additional flight. Air Arabia, which runs four flights a week on the Sharjah-Kathmandu sector, is seeking a green signal to operate four additional flights.
China Southern is also mulling a flight increment on the Guangzhou-Kathmandu route. "We are going to use bigger aircraft, Boeing-757 from September end, instead of current 128-seater aircraft. Then, we will take a decision whether to add a flight or two, depending on the response," said Deepak Bhatt, chairman of Gorkha Travels, general sales agent of the airline in Nepal.
Sri Lankan Airlines has also shown interest to fly to Nepal since the last year but the Nepal government is yet to respond.
Operation of new airlines and increment in frequency of flights have come as good news for the tourism industry at a time when all airlines flying to Nepal are packed, causing a number of tourists to cancel their travel plans.
Over the year, four airlines-- Bangladesh, Air Arabia, Korean Air, and China Southern-- began flights to Nepal.
eKantipur.com, 11-Aug-2007
By Krishna Regmi
Nepal is fast turning into a hot destination for international airlines while the national flag carrier is reeling under lack of aircraft. Three foreign airlines are on the verge of beginning operations, while five more already operating in Nepal are planning to increase frequency.
Orient Thai Airlines, a Thailand based airline, is preparing to fly between Kathmandu with Bangkok from August 19.
Etihad Airlines, the national airline of the United Arab Emirates, and Silk Air, a subsidiary of Singapore Airlines have already announced commencement of flights to Kathmandu from October.
"We have received an application from Orient Thai asking schedule approval for thrice-a-week flights on the Kathmandu-Bangkok route from August 19," said an official at the Civil Aviation Authority of Nepal (CAAN). The airline will soon get the green signal.
With 140-seater Airbus 320 aircraft, Silk Air is scheduled to operate thrice-a-week flights on the Kathmandu-Singapore route. Etihad will operate four-days-a-week flights on the Kathmandu-Abu Dhabi sector.
Etihad will use Airbus A330-200 configured to carry 262 passengers, with 22 business and 240 economy class seats.
Thai Airlines, Qatar Airways, China Southern, Air Arabia, and Korean Air are planning to increase flight frequency to Nepal.
With robust growth in tourist arrivals to Nepal and more Nepalis traveling abroad, foreign airlines are jockeying to tap this market.
Tourist arrivals grew by a staggering 35.6 percent to 193,211 in the first seven months this year. Nepalis working abroad are also on a steady rise, with around 200,000 leaving for foreign employment last year alone. A decade ago only around 3,000 Nepalis left for jobs abroad.
Thai Airways plans to add three flights a week and is awaiting the green signal from the Nepali authorities. Qatar Airways has been requesting the government to allow it to run seven extra flights per week between Doha and Kathmandu. Korean Air also has requested the CAAN to let it to operate an additional flight. Air Arabia, which runs four flights a week on the Sharjah-Kathmandu sector, is seeking a green signal to operate four additional flights.
China Southern is also mulling a flight increment on the Guangzhou-Kathmandu route. "We are going to use bigger aircraft, Boeing-757 from September end, instead of current 128-seater aircraft. Then, we will take a decision whether to add a flight or two, depending on the response," said Deepak Bhatt, chairman of Gorkha Travels, general sales agent of the airline in Nepal.
Sri Lankan Airlines has also shown interest to fly to Nepal since the last year but the Nepal government is yet to respond.
Operation of new airlines and increment in frequency of flights have come as good news for the tourism industry at a time when all airlines flying to Nepal are packed, causing a number of tourists to cancel their travel plans.
Over the year, four airlines-- Bangladesh, Air Arabia, Korean Air, and China Southern-- began flights to Nepal.
Water resources strategy falls short of targets
Water resources strategy falls short of targets
eKantipur.com, 8-Aug-2007
BY THIRA L BHUSAL
The government has failed to meet all the targets set by itself in the Water Resources Strategy, in the sectors of hydropower development, water supply, sanitation, and irrigation, among others. Either the targets are under-achieved or no work has been done to meet them.
While launching its short, mid and long-term Water Resources Strategy in 2002, the government had set several targets. In its five-year (short-term) strategy, the government aimed to generate 820 MW hydropower to meet projected demand, including 72 MW for export by 2007. The country produces maximum 560 MW from hydropower plants as of today.
Likewise, it had targeted to have the private sector contribute 75 percent of the total investment in hydropower sector by 2007. However, Nepal Electricity Authority (NEA), in its Corporate Plan, says, "extremely limited investment capability of the country continues to remain one of the major impediments in the development of the power sector.
"The current private sector investment trend in the the power sector is not encouraging," NEA says in the document. "The continuing investment of the private sector in only small capacity plants in the 1-5 MW range, does not provide any substantial relief in meeting the growing needs of the country's power system," it says.
Water Supply and Sanitation
The government target was to provide access to water supply to 85 percent and safe sanitation to 60 percent of the population by 2007. Likewise, 85 percent would be aware of good hygiene practices by this year, as per the plan.
However, only 77 percent of the people had access to water supply, while 37 percent of the urban population and only 20 percent of rural people used improved toilets by the end of the last fiscal year, according to the concept paper of a three-year Interim Plan prepared recently by the National Planning Commission.
Irrigation
The strategy envisioned increasing round-the-year irrigation to 60 percent of irrigated land. However, officials at the Department of Irrigation informed that only 42 percent of irrigable land has year-round irrigation facility so far.
Why the failure?
When asked about failure in achieving almost all of the targets, Shital Babu Regmee, Executive Director of the Water and Energy Commission Secretariat (WECS), under the Ministry of Water Resources stated lack of political commitment as a major hindrance, apart from the decade-long insurgency in the country.
The targets are not ambitious, according to him. "Just completing a single major hydro project would be enough to achieve it (hydropower target)," Regmee said. As long as political leadership cannot come up with a concrete policy about exploiting water resources, the government cannot achieve such targets, he added. "The leadership should dare to take bold decisions and be able to convince the public," he said.
The first hydroelectric project in Nepal established at Pharping in 1911 generated 500 Kw. Nearly 100 years later, we now generate 560 MW electricity in total. "Where will we reach at this pace?" asked a senior divisional engineer at WECS.
eKantipur.com, 8-Aug-2007
BY THIRA L BHUSAL
The government has failed to meet all the targets set by itself in the Water Resources Strategy, in the sectors of hydropower development, water supply, sanitation, and irrigation, among others. Either the targets are under-achieved or no work has been done to meet them.
While launching its short, mid and long-term Water Resources Strategy in 2002, the government had set several targets. In its five-year (short-term) strategy, the government aimed to generate 820 MW hydropower to meet projected demand, including 72 MW for export by 2007. The country produces maximum 560 MW from hydropower plants as of today.
Likewise, it had targeted to have the private sector contribute 75 percent of the total investment in hydropower sector by 2007. However, Nepal Electricity Authority (NEA), in its Corporate Plan, says, "extremely limited investment capability of the country continues to remain one of the major impediments in the development of the power sector.
"The current private sector investment trend in the the power sector is not encouraging," NEA says in the document. "The continuing investment of the private sector in only small capacity plants in the 1-5 MW range, does not provide any substantial relief in meeting the growing needs of the country's power system," it says.
Water Supply and Sanitation
The government target was to provide access to water supply to 85 percent and safe sanitation to 60 percent of the population by 2007. Likewise, 85 percent would be aware of good hygiene practices by this year, as per the plan.
However, only 77 percent of the people had access to water supply, while 37 percent of the urban population and only 20 percent of rural people used improved toilets by the end of the last fiscal year, according to the concept paper of a three-year Interim Plan prepared recently by the National Planning Commission.
Irrigation
The strategy envisioned increasing round-the-year irrigation to 60 percent of irrigated land. However, officials at the Department of Irrigation informed that only 42 percent of irrigable land has year-round irrigation facility so far.
Why the failure?
When asked about failure in achieving almost all of the targets, Shital Babu Regmee, Executive Director of the Water and Energy Commission Secretariat (WECS), under the Ministry of Water Resources stated lack of political commitment as a major hindrance, apart from the decade-long insurgency in the country.
The targets are not ambitious, according to him. "Just completing a single major hydro project would be enough to achieve it (hydropower target)," Regmee said. As long as political leadership cannot come up with a concrete policy about exploiting water resources, the government cannot achieve such targets, he added. "The leadership should dare to take bold decisions and be able to convince the public," he said.
The first hydroelectric project in Nepal established at Pharping in 1911 generated 500 Kw. Nearly 100 years later, we now generate 560 MW electricity in total. "Where will we reach at this pace?" asked a senior divisional engineer at WECS.
Chilime to cap price for next 4.5 yrs
Chilime to cap price for next 4.5 yrs
eKantipur.com, 28-Jul-2007
BY BIKASH SANGRAULA
The 20 megawatt Chilime Hydroelectric Project, which went from fame to infamy for first being an indigenous and cheapest power producer in the country and later the most expensive power vendor to Nepal Electricity Authority (NEA), will put a cap on its existing selling price for the next four-and-a-half years.
"A board meeting of Chilime Hydropower Company is taking a decision to this effect Sunday," said Gokarna Prasad Sharma, board member of the company, whose 51 percent shares are owned by NEA, and 25 percent by NEA employees. The remaining 24 percent shares are being issued to the public by the end of this fiscal year.
Chilime has an agreement to raise the price of electricity it sells to NEA by eight percent annually, the highest raise NEA has agreed to its suppliers.
"The project came into operation four-and-a-half-years later than scheduled, but the power price was adjusted even for that period," said Sharma. "The project has, therefore, decided not to raise power price for the next four-and-half years in view of the raise that was made even during the delay period," Sharma explained.
Owing to the eight percent annual increment, Chilime currently sells electricity to NEA at Rs 6.17 per unit, which is the highest price NEA pays to any supplier. NEA's average retail price is Rs 6.5 per unit. In 1995, NEA signed a Power Purchase Agreement (PPA) with Chilime at Rs 3 per unit, which was to be applicable from 1999, the original scheduled deadline for the project's commissioning. However, the project came into operation only in the later part of 2003, and by that time, the price had already shot up to nearly Rs 4.
According to Sharma, there have already been increments eight times in the price of power the project sells to NEA, including the period of delay.
"The maximum number of times the increments can be made, according to the existing agreement, is twelve, after which the price will remain constant" he said.
Chilime was built entirely through indigenous labour and capital, with the production cost at just Rs 2.19 per unit, the cheapest in the country, due to which the country's entire power sector and the media praised it, until the price arrangements came to light in recent months.
In the fiscal year 2006/07, NEA registered a net loss of Rs 2.4 billion, of which it lost Rs 1.75 billion in transactions with Chilime, the 36-megawatt Bhotekoshi and the 60-megawatt Khimti projects, with which NEA has "take or pay" agreements.
On the other hand, the three producers pocketed a total profit of Rs 1.4 billion in the same fiscal year, of which Chilime netted Rs 380 million.
Chilime project, located in Rasuwa district, is connected to the national power grid through a 38-km 66kV transmission line of the Trishuli-Devighat sub-station.
eKantipur.com, 28-Jul-2007
BY BIKASH SANGRAULA
The 20 megawatt Chilime Hydroelectric Project, which went from fame to infamy for first being an indigenous and cheapest power producer in the country and later the most expensive power vendor to Nepal Electricity Authority (NEA), will put a cap on its existing selling price for the next four-and-a-half years.
"A board meeting of Chilime Hydropower Company is taking a decision to this effect Sunday," said Gokarna Prasad Sharma, board member of the company, whose 51 percent shares are owned by NEA, and 25 percent by NEA employees. The remaining 24 percent shares are being issued to the public by the end of this fiscal year.
Chilime has an agreement to raise the price of electricity it sells to NEA by eight percent annually, the highest raise NEA has agreed to its suppliers.
"The project came into operation four-and-a-half-years later than scheduled, but the power price was adjusted even for that period," said Sharma. "The project has, therefore, decided not to raise power price for the next four-and-half years in view of the raise that was made even during the delay period," Sharma explained.
Owing to the eight percent annual increment, Chilime currently sells electricity to NEA at Rs 6.17 per unit, which is the highest price NEA pays to any supplier. NEA's average retail price is Rs 6.5 per unit. In 1995, NEA signed a Power Purchase Agreement (PPA) with Chilime at Rs 3 per unit, which was to be applicable from 1999, the original scheduled deadline for the project's commissioning. However, the project came into operation only in the later part of 2003, and by that time, the price had already shot up to nearly Rs 4.
According to Sharma, there have already been increments eight times in the price of power the project sells to NEA, including the period of delay.
"The maximum number of times the increments can be made, according to the existing agreement, is twelve, after which the price will remain constant" he said.
Chilime was built entirely through indigenous labour and capital, with the production cost at just Rs 2.19 per unit, the cheapest in the country, due to which the country's entire power sector and the media praised it, until the price arrangements came to light in recent months.
In the fiscal year 2006/07, NEA registered a net loss of Rs 2.4 billion, of which it lost Rs 1.75 billion in transactions with Chilime, the 36-megawatt Bhotekoshi and the 60-megawatt Khimti projects, with which NEA has "take or pay" agreements.
On the other hand, the three producers pocketed a total profit of Rs 1.4 billion in the same fiscal year, of which Chilime netted Rs 380 million.
Chilime project, located in Rasuwa district, is connected to the national power grid through a 38-km 66kV transmission line of the Trishuli-Devighat sub-station.
MoAC unveils commercial agriculture policy
MoAC unveils commercial agriculture policy
eKantipur.com, 25-Jul-2007
The Ministry of Agriculture and Co-operatives (MoAC) on Wednesday unveiled a policy focusing on commercialization of agriculture sector for the fiscal year 2007/08.
Under the policy, MoAC has planned for a long-term lease of government-owned barren land to landless people for the purpose of commercial and co-operative farming.
The MoAC is also launching parwar (pointed gourd) farming in eleven districts, potato farming in 20 districts along with the programs targeted to uplift under-privileged groups in the terai.
“We have put commercialization of agriculture in top priority while formulating current fiscal year's policy,” said Dr Hari Dahal, spokesperson at MoAC, talking to the Post on Wednesday. "We are also continuing One Village One Product (OVOP) program this year for the commercialization of fruits and fish varieties like trout. The ministry has allocated Rs 30 million this year for OVOP program.
The government is also encouraging commercial farming of herbs, cooperative animal husbandry in 22 districts inhabited by backward people including the emancipated Kamaiyas, along with off-season vegetable farming inside green house to generate income among underprivileged classes, states the policy paper of MoAC.
The policy also has incorporated programs of lending goats in additional 38 districts to provide opportunity to poor farmers in goat rearing, and operating fisheries through women's groups along the highway in Kailali and Kanchanpur districts.
The ministry has also framed a policy to expand tea cultivation in other districts of the eastern region under the program of intensifying high-valued crops and off-season agricultural produce while programs will be initiated to extend coffee cultivation in additional districts of western hilly region.
Under the policy, the ministry has allocated Rs 37.9 million to provide subsidy in chemical fertilizers and seeds in 26 districts whereas the limit of subsidized loan has been hiked to Rs 15,000 from existing Rs 10,000.
To promote export of organic agricultural produces, government has laid a provision to issue internationally recognized certified demand paper.
Much to the relief of sugarcane producing farmers, government is forming Sugarcane and Sugar Board with the representation of farmers and sugar mill representatives and to conduct research to increase productivity.
In a bid to replace mounting imports, the MoAC is initiating the policy of expanding onion farming in additional 2,400 hectares of land in Saptari, Siraha, Sarlahi, Bara, Dhanusha and Rupandehi districts.
eKantipur.com, 25-Jul-2007
The Ministry of Agriculture and Co-operatives (MoAC) on Wednesday unveiled a policy focusing on commercialization of agriculture sector for the fiscal year 2007/08.
Under the policy, MoAC has planned for a long-term lease of government-owned barren land to landless people for the purpose of commercial and co-operative farming.
The MoAC is also launching parwar (pointed gourd) farming in eleven districts, potato farming in 20 districts along with the programs targeted to uplift under-privileged groups in the terai.
“We have put commercialization of agriculture in top priority while formulating current fiscal year's policy,” said Dr Hari Dahal, spokesperson at MoAC, talking to the Post on Wednesday. "We are also continuing One Village One Product (OVOP) program this year for the commercialization of fruits and fish varieties like trout. The ministry has allocated Rs 30 million this year for OVOP program.
The government is also encouraging commercial farming of herbs, cooperative animal husbandry in 22 districts inhabited by backward people including the emancipated Kamaiyas, along with off-season vegetable farming inside green house to generate income among underprivileged classes, states the policy paper of MoAC.
The policy also has incorporated programs of lending goats in additional 38 districts to provide opportunity to poor farmers in goat rearing, and operating fisheries through women's groups along the highway in Kailali and Kanchanpur districts.
The ministry has also framed a policy to expand tea cultivation in other districts of the eastern region under the program of intensifying high-valued crops and off-season agricultural produce while programs will be initiated to extend coffee cultivation in additional districts of western hilly region.
Under the policy, the ministry has allocated Rs 37.9 million to provide subsidy in chemical fertilizers and seeds in 26 districts whereas the limit of subsidized loan has been hiked to Rs 15,000 from existing Rs 10,000.
To promote export of organic agricultural produces, government has laid a provision to issue internationally recognized certified demand paper.
Much to the relief of sugarcane producing farmers, government is forming Sugarcane and Sugar Board with the representation of farmers and sugar mill representatives and to conduct research to increase productivity.
In a bid to replace mounting imports, the MoAC is initiating the policy of expanding onion farming in additional 2,400 hectares of land in Saptari, Siraha, Sarlahi, Bara, Dhanusha and Rupandehi districts.
Nepal, South Korea sign labour pact
Nepal, South Korea sign labour pact
Nepalnews.com, 23-Jul-2007
Nepal and South Korea signed a memorandum of understanding for Employment Permit System (EPS) in Seoul on Monday, opening up the prospects of more job opportunities for Nepalis in Korea.
Nepali Labour Minister Ramesh Lekhak and Korean Minister Lee Sang-Soo signed the MoU amid a ceremony, a statement issued by the Nepalese embassy in Seoul said.
According to the new provision, the Nepal government would make all necessary arrangements such as providing training on Korean language and proper selection procedure before sending workers to Korea.
The expenditure that Nepali workers need to make prior to flying to Korea for job would be determined on consensus, the agreement reads.
Speaking on the occasion, Korean minister Soo said the agreement would help strengthen the bilateral relation between the two countries.
Minister Lekhak also expressed Nepal government's commitments to effectively implement the understanding.
As per this agreement, Nepal will send around 5,000 Nepali workers to Korea every year.
Similar agreement was signed recently with United Arab Emirates
Nepalnews.com, 23-Jul-2007
Nepal and South Korea signed a memorandum of understanding for Employment Permit System (EPS) in Seoul on Monday, opening up the prospects of more job opportunities for Nepalis in Korea.
Nepali Labour Minister Ramesh Lekhak and Korean Minister Lee Sang-Soo signed the MoU amid a ceremony, a statement issued by the Nepalese embassy in Seoul said.
According to the new provision, the Nepal government would make all necessary arrangements such as providing training on Korean language and proper selection procedure before sending workers to Korea.
The expenditure that Nepali workers need to make prior to flying to Korea for job would be determined on consensus, the agreement reads.
Speaking on the occasion, Korean minister Soo said the agreement would help strengthen the bilateral relation between the two countries.
Minister Lekhak also expressed Nepal government's commitments to effectively implement the understanding.
As per this agreement, Nepal will send around 5,000 Nepali workers to Korea every year.
Similar agreement was signed recently with United Arab Emirates
Tourist arrivals up by 9.6 pc
Tourist arrivals up by 9.6 pc
eKantipur.com, 5-Jul-2007
Tourist arrivals rose by a modest 9.6 percent in June, signaling a cooling down in robust growth, caused by the fall in the number of Indian visitors.
The rise is far too below the average growth of 37.5 percent in the first six months of the year 2007.
A total of 23, 502 tourists visited the country during the period, up from 21,444 tourists in the same month last year.
The tourism industry reported a robust growth from the European market. The number of European tourists increased by a staggering 39 percent.
The country registered whopping rises of 137 percent, 47.3 percent, and 82.2 percent in tourist arrivals from Sweden, Britain and Denmark. Some 756 Swedish, 11,536 British and 1,011 Danish tourists came to the country.
Likewise, the number of German tourists went up by 52.2 percent to 6,877. The tourism industry recoded a rise of 46.7 percent rise in arrivals from France. A total of 6,296 French tourists visited the country.
However, India, the main market of Nepali tourism industry, showed a very poor scenario. The number of tourists from India, which made up around 50 percent of tourists visiting the country, fell by 12.8 percent to 12,379.
On the slowdown in overall tourists arrivals, the NTB said frequent strikes, street protest and demonstration, hurdles in vehicle movement in the country, mainly in the terai region are some of the factors contributing indirectly to retard the healthy growth of tourism.
The NTB, in a statement, blamed the decline for air-accessibility. Moreover, the surge in air ticket cost in flying between India and Nepal is also one of the greatest reasons for the fall in the arrival figures from India, it said.
eKantipur.com, 5-Jul-2007
Tourist arrivals rose by a modest 9.6 percent in June, signaling a cooling down in robust growth, caused by the fall in the number of Indian visitors.
The rise is far too below the average growth of 37.5 percent in the first six months of the year 2007.
A total of 23, 502 tourists visited the country during the period, up from 21,444 tourists in the same month last year.
The tourism industry reported a robust growth from the European market. The number of European tourists increased by a staggering 39 percent.
The country registered whopping rises of 137 percent, 47.3 percent, and 82.2 percent in tourist arrivals from Sweden, Britain and Denmark. Some 756 Swedish, 11,536 British and 1,011 Danish tourists came to the country.
Likewise, the number of German tourists went up by 52.2 percent to 6,877. The tourism industry recoded a rise of 46.7 percent rise in arrivals from France. A total of 6,296 French tourists visited the country.
However, India, the main market of Nepali tourism industry, showed a very poor scenario. The number of tourists from India, which made up around 50 percent of tourists visiting the country, fell by 12.8 percent to 12,379.
On the slowdown in overall tourists arrivals, the NTB said frequent strikes, street protest and demonstration, hurdles in vehicle movement in the country, mainly in the terai region are some of the factors contributing indirectly to retard the healthy growth of tourism.
The NTB, in a statement, blamed the decline for air-accessibility. Moreover, the surge in air ticket cost in flying between India and Nepal is also one of the greatest reasons for the fall in the arrival figures from India, it said.
NEPSE crosses 600 mark
NEPSE crosses 600 mark
Nepalnews.com, 7-Jul-2007
The Nepal Stock Exchange (Nepse) index made history in its 13-year-long existence when it crossed the 600 mark for the first time on Tuesday. Trade analysts attributed the rise to a continuous rise in share prices caused by the remarkable confidence shown by investors in stock trading.
The Nepse opened at 598.52 points Tuesday morning and ended at over 602 points, with shares of commercial banks and hydropower companies gaining.
According to the Himalayan Times, of the 40 leading scrips traded Tuesday, more than 90 percent of them gained in a range of Rs 1 to Rs 75 per share and only five companies were the losers among them.
The Nepse index has been soaring high for the last six weeks with investors making largely speculative buying amid rumors of persistent growth in share prices.
The Himalayan Times reported that the market has been overheated on speculation that the “financial institutions would soon announce positive annual financial results, as the book for this fiscal year is being closed in a week or so”.
“A rush of gullible and new investors is taking stock trading to a new high these days,” senior official at Nepse told the daily. He, however, warned that the current growth is “not justifiable in accordance with the country’s economic performance and actual financial health of the listed companies”
Terming the current Nepse as a ‘rumour-driven market’, the official also warned that the market could crash any day, if the existing speculation-dominated trend continued
Nepalnews.com, 7-Jul-2007
The Nepal Stock Exchange (Nepse) index made history in its 13-year-long existence when it crossed the 600 mark for the first time on Tuesday. Trade analysts attributed the rise to a continuous rise in share prices caused by the remarkable confidence shown by investors in stock trading.
The Nepse opened at 598.52 points Tuesday morning and ended at over 602 points, with shares of commercial banks and hydropower companies gaining.
According to the Himalayan Times, of the 40 leading scrips traded Tuesday, more than 90 percent of them gained in a range of Rs 1 to Rs 75 per share and only five companies were the losers among them.
The Nepse index has been soaring high for the last six weeks with investors making largely speculative buying amid rumors of persistent growth in share prices.
The Himalayan Times reported that the market has been overheated on speculation that the “financial institutions would soon announce positive annual financial results, as the book for this fiscal year is being closed in a week or so”.
“A rush of gullible and new investors is taking stock trading to a new high these days,” senior official at Nepse told the daily. He, however, warned that the current growth is “not justifiable in accordance with the country’s economic performance and actual financial health of the listed companies”
Terming the current Nepse as a ‘rumour-driven market’, the official also warned that the market could crash any day, if the existing speculation-dominated trend continued
Signs of revival in handicraft export
Signs of revival in handicraft export
eKantipur.com, 4-Jul-2007
As a dim indication of revival of handicraft exports, the declining trend of handicraft exports has slowed down in the past two months, reveals the statistics of Federation of Handicraft Associations of Nepal (FHAN).
According to the figures, cumulative handicraft exports during the 10th and 11th months of the fiscal year went down by 1.8 percent, whereas its exports had gone down by 4.65 percent till the ninth month.
Total exports during the first 11 months remained lower than that recorded during the same period last year.
FHAN's figure shows handicraft items worth Rs 2.43 billion were exported during the period, while the same was Rs 2.54 billion in same period last fiscal year.
The slump in the export of pashmina products, metal craft and handmade paper, which together make 41 percent of all handicraft exports from Nepal, is largely attributed for the fall.
Things still look bad for pashmina products, which make up nearly 19 percent of the total handicraft exports.
A total of Rs 448.62 million worth of pashmina products were exported in the 11 months of this fiscal year. It is a drop of 19.04 percent compared to the export recorded during the same period last year. The country had exported pashmina worth of over Rs 5.6 billion six years ago.
FHAN officials said pashmina export suffered mostly from tough competition exerted by similar Chinese and Indian products. Nepali entrepreneurs' inability to adapt to the new market trends, develop new products and failure to maintain a standard of quality contributed to the loss of market.
The industry had also received a setback recently when Japan stopped exports from five companies and started verifying them for authenticity. Apart from Japan, other countries like Italy and Spain have also called pashmina entrepreneurs to define the products.
Export of metal craft also declined by about 10 percent to Rs 349.12 million during the period. Export of handmade paper products also slid by 5.96 percent to Rs 218.29 million.
The export of woolen goods plummeted by 27.36 percent during the period.
According to FHAN, Rs 571.48 million worth of woolen goods and felt products were exported in the first 11 months of the 2005/06 fiscal year while in the same period this year Rs 415.13 million worth of woolen goods and Rs 185.92 million worth of felt products were exported bringing the combined export to Rs 601.07 million.
Cotton goods, allo goods, other textile products, silver jewelry, leather goods, incense, thanka art, ceramics products, bone and horn products, plastic items and stone craft saw improvement in export this year.
These products brought in foreign currency equal to Rs 567.78 million in the first 11 months of this year, compared to Rs 517.08 million in the same period last year.
eKantipur.com, 4-Jul-2007
As a dim indication of revival of handicraft exports, the declining trend of handicraft exports has slowed down in the past two months, reveals the statistics of Federation of Handicraft Associations of Nepal (FHAN).
According to the figures, cumulative handicraft exports during the 10th and 11th months of the fiscal year went down by 1.8 percent, whereas its exports had gone down by 4.65 percent till the ninth month.
Total exports during the first 11 months remained lower than that recorded during the same period last year.
FHAN's figure shows handicraft items worth Rs 2.43 billion were exported during the period, while the same was Rs 2.54 billion in same period last fiscal year.
The slump in the export of pashmina products, metal craft and handmade paper, which together make 41 percent of all handicraft exports from Nepal, is largely attributed for the fall.
Things still look bad for pashmina products, which make up nearly 19 percent of the total handicraft exports.
A total of Rs 448.62 million worth of pashmina products were exported in the 11 months of this fiscal year. It is a drop of 19.04 percent compared to the export recorded during the same period last year. The country had exported pashmina worth of over Rs 5.6 billion six years ago.
FHAN officials said pashmina export suffered mostly from tough competition exerted by similar Chinese and Indian products. Nepali entrepreneurs' inability to adapt to the new market trends, develop new products and failure to maintain a standard of quality contributed to the loss of market.
The industry had also received a setback recently when Japan stopped exports from five companies and started verifying them for authenticity. Apart from Japan, other countries like Italy and Spain have also called pashmina entrepreneurs to define the products.
Export of metal craft also declined by about 10 percent to Rs 349.12 million during the period. Export of handmade paper products also slid by 5.96 percent to Rs 218.29 million.
The export of woolen goods plummeted by 27.36 percent during the period.
According to FHAN, Rs 571.48 million worth of woolen goods and felt products were exported in the first 11 months of the 2005/06 fiscal year while in the same period this year Rs 415.13 million worth of woolen goods and Rs 185.92 million worth of felt products were exported bringing the combined export to Rs 601.07 million.
Cotton goods, allo goods, other textile products, silver jewelry, leather goods, incense, thanka art, ceramics products, bone and horn products, plastic items and stone craft saw improvement in export this year.
These products brought in foreign currency equal to Rs 567.78 million in the first 11 months of this year, compared to Rs 517.08 million in the same period last year.
Wednesday, July 04, 2007
Roundup of Economic & Business News (Jun 24 - Jul 3)
June 24
‘My dream is to make Prisma a global player’-Ranjit Acharya (ekantipur.com)
NB Bank join hands with Western Union, Laxmi Bank issues Visa cards (ekantipur.com)
Interim plan aims to achieve 5.50 % economic growth rate, reduce poverty (nepalnews.com)
June 25
Parties for free energy from West Seti (ekantipur.com)
Truckers halt services in Mechi, Koshi (ekantipur.com)
Court bars NRB move against Pun (ekantipur.com)
KIST Merchant and Finance opens branch (ekantipur.com)
Revenue collection shoots up (ekantipur.com)
Oil crisis deepens (ekantipur.com)
Terai life hit hard by routine bandhs (nepalnews.com)
June 26
Job hopes in Karnali still unmet, Govt’s 1 family, 1 job program (ekantipur.com)
Overseas jobs see some rise (ekantipur.com)
‘Ensure smooth oil supply’ (ekantipur.com)
Clear policy sought to protect domestic industry (ekantipur.com)
Supply hit as truckers go on strike in eastern region (nepalnews.com)
June 27
Demands on budget threaten financial stability: Mahat (ekantipur.com)
35% demand met by domestic drugs (ekantipur.com)
Earnings of overseas workers dwindle (ekantipur.com)
Insurance policy for doctors (ekantipur.com)
Malika, SCT sign ATM deal (ekantipur.com)
‘Lot needs to be done to ameliorate RBB, NBL’ (ekantipur.com)
WorldLink expands its foothold (ekantipur.com)
Seven percent growth in foreign employment (nepalnews.com)
Consumption of antibiotics down by 8pc (nepalnews.com)
June 28
Work at Mid-Marsyangdi halts indefinitely (ekantipur.com)
Stock trading halted (ekantipur.com)
No action on CIAA's fiat over NMA (ekantipur.com)
Maoists call off indefinite bandh in Siraha (nepalnews.com)
June 29
NRB governor suspended, CIAA files case in Rs 24.54m scam (ekantipur.com)
Monsoon tourists relish ropain (ekantipur.com)
DDC, private dairies hike milk price (ekantipur.com)
Transport strike extends westward (ekantipur.com)
BIMSTEC members still divided (ekantipur.com)
Planned urbanization for better future: Minister Yami (Nepalbiznews.com)
June 30
Businesses hit hard by transport strike (ekantipur.com)
Coffee production rises by 40 pc (ekantipur.com)
Permanent Account Number (PAN) registration growing fast (ekantipur.com)
Emission reduction purchase agreement (ERPA) signed to provide energy (ekantipur.com)
CIAA action against governor adversely affects financial reforms, says FM (nepalnews.com)
July 1
India building 126MW hydro near border, Border residents fear submersion (ekantipur.com)
400 Nepali workers starnded in Oman (ekantipur.com)
Nearly 18,000 children doing mechanical work (ekantipur.com)
Fuel to petrol pumps stalled (ekantipur.com)
Three finance companies to merge (ekantipur.com)
Lawmakers want revolutionary policy in agriculture (Nepalbiznews.com)
NAC celebrates its 49th anniversary (nepalnews.com)
July 2
Dagmara hydel only being studied: India (ekantipur.com)
Transport strike over (ekantipur.com)
Petrol supply dwindles further, Private pumps receive no fuel (ekantipur.com)
Microsoft, Unlimited ink partnership pact (ekantipur.com)
Domestic airlines packed, passengers stranded (ekantipur.com)
Reform local tax system:Businessmen (ekantipur.com)
Manandhar appointed acting NRB governor (Nepalbiznews.com)
Govt extends Rs 1.70b loan to NOC (Nepalbiznews.com)
July 3
Nepal signs labor pact with UAE (ekantipur.com)
NEPSE crosses 600-mark (ekantipur.com)
‘Operate Dhaka-Ktm bus service’-Hasan Mansur (ekantipur.com)
144 KL of petrol pumped out in Valley (ekantipur.com)
Consumer inflation eases (ekantipur.com)
Governor Bhattarai summoned, Pradhan freed on bail (Nepalbiznews.com)
No ‘on-arrival’ visas for seven countries (nepalnews.com)
‘My dream is to make Prisma a global player’-Ranjit Acharya (ekantipur.com)
NB Bank join hands with Western Union, Laxmi Bank issues Visa cards (ekantipur.com)
Interim plan aims to achieve 5.50 % economic growth rate, reduce poverty (nepalnews.com)
June 25
Parties for free energy from West Seti (ekantipur.com)
Truckers halt services in Mechi, Koshi (ekantipur.com)
Court bars NRB move against Pun (ekantipur.com)
KIST Merchant and Finance opens branch (ekantipur.com)
Revenue collection shoots up (ekantipur.com)
Oil crisis deepens (ekantipur.com)
Terai life hit hard by routine bandhs (nepalnews.com)
June 26
Job hopes in Karnali still unmet, Govt’s 1 family, 1 job program (ekantipur.com)
Overseas jobs see some rise (ekantipur.com)
‘Ensure smooth oil supply’ (ekantipur.com)
Clear policy sought to protect domestic industry (ekantipur.com)
Supply hit as truckers go on strike in eastern region (nepalnews.com)
June 27
Demands on budget threaten financial stability: Mahat (ekantipur.com)
35% demand met by domestic drugs (ekantipur.com)
Earnings of overseas workers dwindle (ekantipur.com)
Insurance policy for doctors (ekantipur.com)
Malika, SCT sign ATM deal (ekantipur.com)
‘Lot needs to be done to ameliorate RBB, NBL’ (ekantipur.com)
WorldLink expands its foothold (ekantipur.com)
Seven percent growth in foreign employment (nepalnews.com)
Consumption of antibiotics down by 8pc (nepalnews.com)
June 28
Work at Mid-Marsyangdi halts indefinitely (ekantipur.com)
Stock trading halted (ekantipur.com)
No action on CIAA's fiat over NMA (ekantipur.com)
Maoists call off indefinite bandh in Siraha (nepalnews.com)
June 29
NRB governor suspended, CIAA files case in Rs 24.54m scam (ekantipur.com)
Monsoon tourists relish ropain (ekantipur.com)
DDC, private dairies hike milk price (ekantipur.com)
Transport strike extends westward (ekantipur.com)
BIMSTEC members still divided (ekantipur.com)
Planned urbanization for better future: Minister Yami (Nepalbiznews.com)
June 30
Businesses hit hard by transport strike (ekantipur.com)
Coffee production rises by 40 pc (ekantipur.com)
Permanent Account Number (PAN) registration growing fast (ekantipur.com)
Emission reduction purchase agreement (ERPA) signed to provide energy (ekantipur.com)
CIAA action against governor adversely affects financial reforms, says FM (nepalnews.com)
July 1
India building 126MW hydro near border, Border residents fear submersion (ekantipur.com)
400 Nepali workers starnded in Oman (ekantipur.com)
Nearly 18,000 children doing mechanical work (ekantipur.com)
Fuel to petrol pumps stalled (ekantipur.com)
Three finance companies to merge (ekantipur.com)
Lawmakers want revolutionary policy in agriculture (Nepalbiznews.com)
NAC celebrates its 49th anniversary (nepalnews.com)
July 2
Dagmara hydel only being studied: India (ekantipur.com)
Transport strike over (ekantipur.com)
Petrol supply dwindles further, Private pumps receive no fuel (ekantipur.com)
Microsoft, Unlimited ink partnership pact (ekantipur.com)
Domestic airlines packed, passengers stranded (ekantipur.com)
Reform local tax system:Businessmen (ekantipur.com)
Manandhar appointed acting NRB governor (Nepalbiznews.com)
Govt extends Rs 1.70b loan to NOC (Nepalbiznews.com)
July 3
Nepal signs labor pact with UAE (ekantipur.com)
NEPSE crosses 600-mark (ekantipur.com)
‘Operate Dhaka-Ktm bus service’-Hasan Mansur (ekantipur.com)
144 KL of petrol pumped out in Valley (ekantipur.com)
Consumer inflation eases (ekantipur.com)
Governor Bhattarai summoned, Pradhan freed on bail (Nepalbiznews.com)
No ‘on-arrival’ visas for seven countries (nepalnews.com)
Nepal signs labor pact with UAE
Nepal signs labor pact with UAE
eKantipur.com, 3-Jul-07
By PRABHAKAR GHIMIRE
Nepal on Tuesday signed a labor pact with the Gulf state, United Arab Emirates, to ensure the safety and rights of Nepali workers.
Dr Ali Bin Abdulla Al Kaabi, UAE Minister of Labor, and Ramesh Lekhak, Nepal's Minister of State for Labor and Transport Management, inked the agreement.
This is the first bilateral labor agreement Nepal has signed with another country.
The agreement, which comes into effective immediately, makes both governments accountable for safeguarding the rights of Nepali laborers, and provides for salary standards and compulsory health insurance for Nepali laborers.
"The agreement also provides Nepali laborers working in the UAE the legal status to fight for their rights" said Minister of State Lekhak after inking the deal, adding, "Nepali workers will get all the benefits and legal rights enjoyed by other foreign workers."
The UAE has shown readiness to import more Nepali workers, and with the establishment of a favorable working environment, the number of workers leaving for that country will definitely go up in the days to come.
Talking to the Post, Acting Secretary at the Ministry of Labor and Transport Management (MoLTM), Umesh Mainali, said the agreement also has a provision for setting up a bilateral mechanism to exchange visits and review the status of Nepali workers every six months.
"Both governments will maintain and exchange data on Nepali laborers working in the UAE on a regular basis to identify their status." Mainali said.
Speaking on the occasion, UAE Labor Minister Al Kaabi said the agreement will target protection of workers' rights.
"The agreement also seeks to prevent improper practices by private manpower agencies which tend to exploit the workers by demanding exaggerated fees, providing false information about their working conditions in the host country." Al Kaabi said, adding, "The pact confirms the importance of supply and recruitment of Nepali labor force in accordance with the laws and regulation in force in both countries."
Al Kaabi also expressed concern about ill practices by manpower agencies that mislead employers in the UAE regarding workers' qualifications, experience and documents.
He hailed the contribution made by Nepali workers in the economic development of the UAE. The continued economic boom in the UAE will provide further employment opportunities in construction, tourism and the manufacturing sector in the coming days, said Al Kaabi.
Foreign employment agencies have also hailed the agreement as historic for the benefit of Nepali workers in the UAE.
"It is a great achievement for Nepal to ensure the safety and benefit of Nepali workers in the UAE", Hansa Raj Wagle, General Secretary of the Nepal Association of Foreign Employment Agencies (NAFEA) told the Post. He predicted that the agreement could push up the number of Nepali workers heading for the UAE by more than 30 percent this year.
Nepal has proposed bilateral labor pacts with half a dozen other countries.
Though Nepal had signed a memorandum of understanding (MoU) with Qatar, the second most popular destination for Nepali labor, it is now dysfunctional since both the governments failed to ratify it within six months after signing the MoU.
During the first 11 months, 20,512 Nepali job seekers left for the UAE and more than 120,000 are currently working in this Gulf state.
UAE to establish labor office in Kathmandu
In a move to eliminate bad practices in laborer dealing, United Arab Emirates (UAE) is establishing a special labor office in Kathmandu soon said the UAE minister.
“Receiver and sender companies are cheating huge amounts of money from poor laborers through false promises and misleading documents in the absence of a proper mechanism,” he said at a function on Tuesday adding, “To eliminate such bad practices we are soon opening special office in Kathmandu to oversee labor issues.”
The office will be equipped with direct electronic networking to verify the misleading documents, he said.
“We don't want the agreement to remain only in writing, we want action.” he added.
He was speaking at a function organized by Nepal Association of Foreign Employer Agencies.
eKantipur.com, 3-Jul-07
By PRABHAKAR GHIMIRE
Nepal on Tuesday signed a labor pact with the Gulf state, United Arab Emirates, to ensure the safety and rights of Nepali workers.
Dr Ali Bin Abdulla Al Kaabi, UAE Minister of Labor, and Ramesh Lekhak, Nepal's Minister of State for Labor and Transport Management, inked the agreement.
This is the first bilateral labor agreement Nepal has signed with another country.
The agreement, which comes into effective immediately, makes both governments accountable for safeguarding the rights of Nepali laborers, and provides for salary standards and compulsory health insurance for Nepali laborers.
"The agreement also provides Nepali laborers working in the UAE the legal status to fight for their rights" said Minister of State Lekhak after inking the deal, adding, "Nepali workers will get all the benefits and legal rights enjoyed by other foreign workers."
The UAE has shown readiness to import more Nepali workers, and with the establishment of a favorable working environment, the number of workers leaving for that country will definitely go up in the days to come.
Talking to the Post, Acting Secretary at the Ministry of Labor and Transport Management (MoLTM), Umesh Mainali, said the agreement also has a provision for setting up a bilateral mechanism to exchange visits and review the status of Nepali workers every six months.
"Both governments will maintain and exchange data on Nepali laborers working in the UAE on a regular basis to identify their status." Mainali said.
Speaking on the occasion, UAE Labor Minister Al Kaabi said the agreement will target protection of workers' rights.
"The agreement also seeks to prevent improper practices by private manpower agencies which tend to exploit the workers by demanding exaggerated fees, providing false information about their working conditions in the host country." Al Kaabi said, adding, "The pact confirms the importance of supply and recruitment of Nepali labor force in accordance with the laws and regulation in force in both countries."
Al Kaabi also expressed concern about ill practices by manpower agencies that mislead employers in the UAE regarding workers' qualifications, experience and documents.
He hailed the contribution made by Nepali workers in the economic development of the UAE. The continued economic boom in the UAE will provide further employment opportunities in construction, tourism and the manufacturing sector in the coming days, said Al Kaabi.
Foreign employment agencies have also hailed the agreement as historic for the benefit of Nepali workers in the UAE.
"It is a great achievement for Nepal to ensure the safety and benefit of Nepali workers in the UAE", Hansa Raj Wagle, General Secretary of the Nepal Association of Foreign Employment Agencies (NAFEA) told the Post. He predicted that the agreement could push up the number of Nepali workers heading for the UAE by more than 30 percent this year.
Nepal has proposed bilateral labor pacts with half a dozen other countries.
Though Nepal had signed a memorandum of understanding (MoU) with Qatar, the second most popular destination for Nepali labor, it is now dysfunctional since both the governments failed to ratify it within six months after signing the MoU.
During the first 11 months, 20,512 Nepali job seekers left for the UAE and more than 120,000 are currently working in this Gulf state.
UAE to establish labor office in Kathmandu
In a move to eliminate bad practices in laborer dealing, United Arab Emirates (UAE) is establishing a special labor office in Kathmandu soon said the UAE minister.
“Receiver and sender companies are cheating huge amounts of money from poor laborers through false promises and misleading documents in the absence of a proper mechanism,” he said at a function on Tuesday adding, “To eliminate such bad practices we are soon opening special office in Kathmandu to oversee labor issues.”
The office will be equipped with direct electronic networking to verify the misleading documents, he said.
“We don't want the agreement to remain only in writing, we want action.” he added.
He was speaking at a function organized by Nepal Association of Foreign Employer Agencies.
Coffee production rises by 40 pc
Coffee production rises by 40 pc
eKantipur.com, 30-Jun-07
As farmers aggressively pursue commercial cultivation of coffee, Nepal recorded a whopping 40 percent rise in organic coffee production compared to last year, said officials.
Raghupati Chaudhary, acting chief of National Tea and Coffee Development Board (NTCDB), western regional office, said that coffee production this year has soared to 391 tons from 278 tons of last year.
Moreover, of the total production, Nepal exported 91.50 tons of coffee to countries such as Japan, USA, UK and South Korea, among others, this year.
“The export fetched the producers and marketers a total of Rs 5.6 million,” said Chaudhary, adding that Nepal had exported a mere Rs 2.45 million worth of coffee five years ago.
Coffee is produced in 40 districts in Nepal. Among them, eleven districts of western region alone produced 163 tons of coffee this year, shows the data of NTCDB.
Palpa, Gulmi, Arghakhanchi, Syangja, Kaski, Parbat, Tanahun, Baglung, Lamjung, Gorkha and Myagdi are the western districts where commercial coffee cultivation is practiced. A total of 12,393 farmers in eleven districts of the region are actively involved in coffee farming.
Farmers into coffee production, meanwhile, urged the government to extend technical cooperation, subsidy on seed and pesticide along with market development activities.
“The government should bring in coffee policy on time so as to support the farmers and facilitate exporters,” said Mona Bhattarai, a coffee farmer, adding that scores of farmers could easily earn their livelihood easily from coffee production if the government supported it.
However, she stated farmers presently are not getting even bio-medicines on time to control diseases.
eKantipur.com, 30-Jun-07
As farmers aggressively pursue commercial cultivation of coffee, Nepal recorded a whopping 40 percent rise in organic coffee production compared to last year, said officials.
Raghupati Chaudhary, acting chief of National Tea and Coffee Development Board (NTCDB), western regional office, said that coffee production this year has soared to 391 tons from 278 tons of last year.
Moreover, of the total production, Nepal exported 91.50 tons of coffee to countries such as Japan, USA, UK and South Korea, among others, this year.
“The export fetched the producers and marketers a total of Rs 5.6 million,” said Chaudhary, adding that Nepal had exported a mere Rs 2.45 million worth of coffee five years ago.
Coffee is produced in 40 districts in Nepal. Among them, eleven districts of western region alone produced 163 tons of coffee this year, shows the data of NTCDB.
Palpa, Gulmi, Arghakhanchi, Syangja, Kaski, Parbat, Tanahun, Baglung, Lamjung, Gorkha and Myagdi are the western districts where commercial coffee cultivation is practiced. A total of 12,393 farmers in eleven districts of the region are actively involved in coffee farming.
Farmers into coffee production, meanwhile, urged the government to extend technical cooperation, subsidy on seed and pesticide along with market development activities.
“The government should bring in coffee policy on time so as to support the farmers and facilitate exporters,” said Mona Bhattarai, a coffee farmer, adding that scores of farmers could easily earn their livelihood easily from coffee production if the government supported it.
However, she stated farmers presently are not getting even bio-medicines on time to control diseases.
DDC, private dairies hike milk price
DDC, private dairies hike milk price
eKantipur.com, 29-Jun-07
Dairy Development Corporation (DDC), a major state-owned dairy supplier and private dairy operators have increased milk price to Rs 29 per liter for the lean season (mid-February to mid-August) across the country effective from Saturday, a concerned official said.
They also decided to fix the milk price at Rs 28 per liter for flush season -during mid-August to mid February. National Dairy Development Board (NDDB), an apex policymaking body of the dairy sector, had recommended milk price last month at Rs 28 per liter for flush season and Rs 29 for lean season from existing Rs 26 per liter. But DDC had defied the recommendation and had increased the milk price at one rupee less per liter than what was recommended.
“We decided to increase the price of milk by Rs 2 or Rs 3 per liter depending on the seasons” said Ram Kumar Khadka, president of Nepal Dairy Association (NDA), an umbrella organization of private dairy operators. He ruled out the possibility of increasing the price of milk products soon as their prices was increased just a couple of months back. Private dairies reached the decision to hike milk price at a gathering held in Kathmandu on Friday.
A meeting of board of directors of DDC has also decided to increase the price to Rs 29 per liter from Rs 28. Likewise, the price of whole milk has been set at Rs 32 per liter for flush season and Rs 33 for lean season.
In the earlier decision, DDC had increased only Rs 2 per liter from existing Rs 26 per liter for all seasons effective from June 15th for Kathmandu Valley, while keeping the price unchanged outside the Valley.
The new adjustment was made in response to the government's decision and increased purchase price of milk, said Raghav Kishore Bhattarai, acting deputy general manager of DDC.
A government initiated meeting of stakeholders including high-ranking government officials held on June 21st at Ministry of Agriculture and Cooperatives (MoAC) had decided to maintain price uniformity and had asked DDC to rollback its previous decision to increase the price that was one rupee less per liter than the recommendation.
While private dairies also kept the milk price unchanged at Rs 26 per liter as a protest against DDC's decision, they exerted pressure on the government to intervene in the market. DDC, private dairies hike milk price
eKantipur.com, 29-Jun-07
Dairy Development Corporation (DDC), a major state-owned dairy supplier and private dairy operators have increased milk price to Rs 29 per liter for the lean season (mid-February to mid-August) across the country effective from Saturday, a concerned official said.
They also decided to fix the milk price at Rs 28 per liter for flush season -during mid-August to mid February. National Dairy Development Board (NDDB), an apex policymaking body of the dairy sector, had recommended milk price last month at Rs 28 per liter for flush season and Rs 29 for lean season from existing Rs 26 per liter. But DDC had defied the recommendation and had increased the milk price at one rupee less per liter than what was recommended.
“We decided to increase the price of milk by Rs 2 or Rs 3 per liter depending on the seasons” said Ram Kumar Khadka, president of Nepal Dairy Association (NDA), an umbrella organization of private dairy operators. He ruled out the possibility of increasing the price of milk products soon as their prices was increased just a couple of months back. Private dairies reached the decision to hike milk price at a gathering held in Kathmandu on Friday.
A meeting of board of directors of DDC has also decided to increase the price to Rs 29 per liter from Rs 28. Likewise, the price of whole milk has been set at Rs 32 per liter for flush season and Rs 33 for lean season.
In the earlier decision, DDC had increased only Rs 2 per liter from existing Rs 26 per liter for all seasons effective from June 15th for Kathmandu Valley, while keeping the price unchanged outside the Valley.
The new adjustment was made in response to the government's decision and increased purchase price of milk, said Raghav Kishore Bhattarai, acting deputy general manager of DDC.
A government initiated meeting of stakeholders including high-ranking government officials held on June 21st at Ministry of Agriculture and Cooperatives (MoAC) had decided to maintain price uniformity and had asked DDC to rollback its previous decision to increase the price that was one rupee less per liter than the recommendation.
While private dairies also kept the milk price unchanged at Rs 26 per liter as a protest against DDC's decision, they exerted pressure on the government to intervene in the market. DDC, private dairies hike milk price
Seven percent growth in foreign employment
Seven percent growth in foreign employment
Nepalnews.com, 27-Jun-07
Compared to the previous fiscal year, the number of people leaving Nepal for employment purposes recorded a slight growth this year. In the past one month alone, some 21,175 Nepalese citizens left Nepal in search of greener pastures abroad.
The number of people going for foreign employment has increased by 6.9 percent in the first 11 months of current fiscal year (July 16, 2006 to July 15, 2007), according to the Department of Labor and Employment Promotion.
During this period, 176,115 persons left the country for 14 different labor destinations around the world, the department said. Last year some 164,742 persons had left the country for foreign employment. Lack of employment opportunities in the country is said to be the main reason why increasing number of Nepalese youths are heading abroad.
As per recent figures, Malaysia remains the most preferred destination among people going for foreign employment. However, number of workers leaving for Malaysia decreased by 13 percent to 65,455 this year from last years 75,758. But in aggregate, around 50 percent of the total outgoing workers left for Malaysia this fiscal year, followed by Qatar and Saudi Arabia.
However, according to manpower companies, increasing number of Nepalese workers are now heading to Qatar, United Arab Emirates and Saudi Arab for foreign employment.
Oppressive labor acts, unsafe working environment and harassments are said to be some of the reasons that are putting off Nepalese workers from Malaysia.
Nepalnews.com, 27-Jun-07
Compared to the previous fiscal year, the number of people leaving Nepal for employment purposes recorded a slight growth this year. In the past one month alone, some 21,175 Nepalese citizens left Nepal in search of greener pastures abroad.
The number of people going for foreign employment has increased by 6.9 percent in the first 11 months of current fiscal year (July 16, 2006 to July 15, 2007), according to the Department of Labor and Employment Promotion.
During this period, 176,115 persons left the country for 14 different labor destinations around the world, the department said. Last year some 164,742 persons had left the country for foreign employment. Lack of employment opportunities in the country is said to be the main reason why increasing number of Nepalese youths are heading abroad.
As per recent figures, Malaysia remains the most preferred destination among people going for foreign employment. However, number of workers leaving for Malaysia decreased by 13 percent to 65,455 this year from last years 75,758. But in aggregate, around 50 percent of the total outgoing workers left for Malaysia this fiscal year, followed by Qatar and Saudi Arabia.
However, according to manpower companies, increasing number of Nepalese workers are now heading to Qatar, United Arab Emirates and Saudi Arab for foreign employment.
Oppressive labor acts, unsafe working environment and harassments are said to be some of the reasons that are putting off Nepalese workers from Malaysia.
Earnings of overseas workers dwindle
Earnings of overseas workers dwindle
eKantipur.com, 27-Jun-07
BY PRABHAKAR GHIMIRE
Nepal has managed to post an encouraging growth in remittance, but a closer look at the receipts show that earnings of average Nepalis working overseas has dwindled drastically over the past one decade.
Data of Ministry of Labor shows the number of overseas workers has gone up by 77 times over the period of 1995/96 - 2005/06. However, the amount of remittance has edged up by just 34 times during the period, according to the central bank.
Analysis of these two figures suggests: earning per capita of overseas Nepali workers stands at mere half of what it used to be a decade ago.
In 1995/96, Nepal had received a total of Rs 2.66 billion in remittance from 2,134 workers employed abroad, which means each worker had earned an average of Rs 1.24 million per year.
Whereas, in 2005/06, 165,256 workers sent only Rs 92.75 billion, putting the earning per head at just above Rs 560,000 a year.
Moreover, per capita earning figure has gone down further in the first six months of the current fiscal year. With volume of remittance receipt standing at Rs 51.59 billion from 94,964 outgoing workers, per worker earning has dropped to Rs 542,500.
Foreign employment company operators attributed the continued shrinking in hard earned income to increasing global competition on overseas job and burgeoning living cost in the employer country.
“Intensified competition among workers from Nepal as well as other source countries has resulted in a decline in wage rate and other facilities to the workers” L P Sanwa, president of Nepal Association of Foreign Employment Agencies (NAFEA) told the Post.
“Even in work, where wage rate has remained stable, rise in inflation in host country and other factors have led to the volume of earnings going down.”
The major sufferers of decline in wage are unskilled laborers, who work at the lowest wage rate and face tough competition in the job market, he stated.
Rameswor Shah, president of Nepalese Society - UAE, also shared the same views.
“Nepali workers are toiling hard under 50 degree Celsius of blistering sun in UAE for meager wages, which has remained unchanged, barring a few cases over the past one decade” he said, adding that their working condition is more hazardous.”
However, the condition of skilled laborers is more satisfactory than the unskilled ones.
According to Shah, Nepali workers earn Rs 7,000 to Rs 1.2 million per month depending on their skill and company they work for. “Those who suffer the most and vulnerable to exploitation are unskilled laborers,” he added.
Realizing the fact, government is all set to fix minimum wage ceiling soon for Nepali workers heading for overseas job, said Ramesh Lekhak, minister of state for Labor.
“It is alarming that wage of Nepali workers has remained at meager 500 riyal per month for the last 15 years in the Gulf region,” he stated.
Dilli Ram Sharma, director at Department of Labor and Employment Promotion (DoLEP) attributed the depleting wages to increasing mobility of workers worldwide.
eKantipur.com, 27-Jun-07
BY PRABHAKAR GHIMIRE
Nepal has managed to post an encouraging growth in remittance, but a closer look at the receipts show that earnings of average Nepalis working overseas has dwindled drastically over the past one decade.
Data of Ministry of Labor shows the number of overseas workers has gone up by 77 times over the period of 1995/96 - 2005/06. However, the amount of remittance has edged up by just 34 times during the period, according to the central bank.
Analysis of these two figures suggests: earning per capita of overseas Nepali workers stands at mere half of what it used to be a decade ago.
In 1995/96, Nepal had received a total of Rs 2.66 billion in remittance from 2,134 workers employed abroad, which means each worker had earned an average of Rs 1.24 million per year.
Whereas, in 2005/06, 165,256 workers sent only Rs 92.75 billion, putting the earning per head at just above Rs 560,000 a year.
Moreover, per capita earning figure has gone down further in the first six months of the current fiscal year. With volume of remittance receipt standing at Rs 51.59 billion from 94,964 outgoing workers, per worker earning has dropped to Rs 542,500.
Foreign employment company operators attributed the continued shrinking in hard earned income to increasing global competition on overseas job and burgeoning living cost in the employer country.
“Intensified competition among workers from Nepal as well as other source countries has resulted in a decline in wage rate and other facilities to the workers” L P Sanwa, president of Nepal Association of Foreign Employment Agencies (NAFEA) told the Post.
“Even in work, where wage rate has remained stable, rise in inflation in host country and other factors have led to the volume of earnings going down.”
The major sufferers of decline in wage are unskilled laborers, who work at the lowest wage rate and face tough competition in the job market, he stated.
Rameswor Shah, president of Nepalese Society - UAE, also shared the same views.
“Nepali workers are toiling hard under 50 degree Celsius of blistering sun in UAE for meager wages, which has remained unchanged, barring a few cases over the past one decade” he said, adding that their working condition is more hazardous.”
However, the condition of skilled laborers is more satisfactory than the unskilled ones.
According to Shah, Nepali workers earn Rs 7,000 to Rs 1.2 million per month depending on their skill and company they work for. “Those who suffer the most and vulnerable to exploitation are unskilled laborers,” he added.
Realizing the fact, government is all set to fix minimum wage ceiling soon for Nepali workers heading for overseas job, said Ramesh Lekhak, minister of state for Labor.
“It is alarming that wage of Nepali workers has remained at meager 500 riyal per month for the last 15 years in the Gulf region,” he stated.
Dilli Ram Sharma, director at Department of Labor and Employment Promotion (DoLEP) attributed the depleting wages to increasing mobility of workers worldwide.
35% demand met by domestic drugs
35% demand met by domestic drugs
eKantipur.com, 27-Jun-07
Nepal is quite good at producing antibiotics though a high amount of drugs is imported in the country, a report said.
According to a study on "Consumption of antibiotics and other medicines" carried out by Department of Drug Administration (DDA), 35 percent of the total consumption in the country is met through domestic industries. The antibiotic amoxicillin is the top selling drug of the domestic industries. Pharmaceutical Horizon of Nepal (PHON) prepared the report for DDA.
The study carried out during the fiscal year 2005/006 in several cities like Kathmandu, Bhairahawa, Birgunj, Biratnagar, Lalitpur and Bhaktapur, among others was released here Wednesday. It said that about 30 percent of total consumption of drugs is covered by antibiotics. Allopathic drugs worth Rs 4.99 billion in retail value were sold through private importers. Ayurvedic/Unani drugs worth Rs 347 million, veterinary drugs worth Rs 201 million and homeopathic drugs worth Rs 4 million were sold through private importers.
Similarly, the total value of drugs imported through Government, UN agencies, INGO's/ NGO's was Rs 889 million. Allopathic drugs worth Rs 3.18 billion in retail value were sold from domestic industries. Ayurvedic/Unani drugs worth Rs 247 million and veterinary drugs worth Rs 121 million in retail value were sold from domestic industries.
The value of drugs imported through different custom points was Rs 5.1 million.
"This study has helped estimate the national consumption of medicines, which will serve as a basis for planning an effective drug management as well as for making self-reliant drug production through the national industries," said Bhupendra Bahadur Thapa, director of DDA.
eKantipur.com, 27-Jun-07
Nepal is quite good at producing antibiotics though a high amount of drugs is imported in the country, a report said.
According to a study on "Consumption of antibiotics and other medicines" carried out by Department of Drug Administration (DDA), 35 percent of the total consumption in the country is met through domestic industries. The antibiotic amoxicillin is the top selling drug of the domestic industries. Pharmaceutical Horizon of Nepal (PHON) prepared the report for DDA.
The study carried out during the fiscal year 2005/006 in several cities like Kathmandu, Bhairahawa, Birgunj, Biratnagar, Lalitpur and Bhaktapur, among others was released here Wednesday. It said that about 30 percent of total consumption of drugs is covered by antibiotics. Allopathic drugs worth Rs 4.99 billion in retail value were sold through private importers. Ayurvedic/Unani drugs worth Rs 347 million, veterinary drugs worth Rs 201 million and homeopathic drugs worth Rs 4 million were sold through private importers.
Similarly, the total value of drugs imported through Government, UN agencies, INGO's/ NGO's was Rs 889 million. Allopathic drugs worth Rs 3.18 billion in retail value were sold from domestic industries. Ayurvedic/Unani drugs worth Rs 247 million and veterinary drugs worth Rs 121 million in retail value were sold from domestic industries.
The value of drugs imported through different custom points was Rs 5.1 million.
"This study has helped estimate the national consumption of medicines, which will serve as a basis for planning an effective drug management as well as for making self-reliant drug production through the national industries," said Bhupendra Bahadur Thapa, director of DDA.
Parties for free energy from West Seti
Parties for free energy from West Seti, Against separate project for Nepal
eKantipur.com, 25-Jul-07
Parliamentarians representing the major parties in the Interim Parliament demanded on Monday that the government amend the agreement with Australia's Snowy Mountain Engineering Corp (SMEC) so that it provide free energy to Nepal from the 750 megawatt West Seti project, instead of providing cash benefit.
In a meeting of the Interim Parliament's Natural Resources and Means Committee, parliamentarians representing NC, CPN (UML), NSP (A), PFN, and United Left Front also asked the government to ensure that SMEC provides free energy from West Seti itself, instead of building another project to give Nepal the free energy.
Furthermore, the parliamentarians told the government to ensure that Nepal gets 10 percent of total generation, instead of just 75 megawatts, as it is possible that the project's installed capacity will cross 750 megawatts.
"We should ask for ten percent free energy from West Seti itself, and we should get the free energy right from the day the project starts generation," said NC's Ananda Dhungana.
Parliamentarians Hridayesh Tripathi of NSP (A) and Lilamani Pokharel of PFN expressed doubts that the project's developer would build another project for providing free energy. They therefore pushed for 10 percent free energy from West Seti itself.
United Left Front's C P Mainali also said that Nepal should ask for benefit in kind instead of cash. Mainali also asked the government why the provision of 10 percent free energy was revised in favor of either free energy or cash, and finally in favor of cash.
However, parliamentarians representing CPN (Maoist) urged the government to halt all decisions on mega projects. Parliamentarians Dinanath Sharma and Lokendra Bista said that the country's priority at the moment is conducting constituent assembly election, and not making decisions on mega projects. RPP's Govinda Bikram Shah concurred with them.
Answering the parliamentarians, Acting Secretary of the Ministry of Water Resources Jitendra Ghimire said that a minute has been signed with SMEC for free energy to Nepal. Ghimire added that the government will ensure increment in free energy to Nepal in the event the project's installed capacity increases.
The government had signed an agreement with SMEC in 1994 for 10 percent free energy to Nepal. The agreement was revised to "either free energy or cash" in 1997, and later to cash benefit in 1998.
In 2003, during the tenure of former Minister of Water Resources Dipak Gyawali, a minute was signed with SMEC stating that the government would identify another project so that SMEC would build it for Nepal for providing free energy. Discussions had taken place then to award the 122 megawatt Upper Seti to SMEC for the purpose.
eKantipur.com, 25-Jul-07
Parliamentarians representing the major parties in the Interim Parliament demanded on Monday that the government amend the agreement with Australia's Snowy Mountain Engineering Corp (SMEC) so that it provide free energy to Nepal from the 750 megawatt West Seti project, instead of providing cash benefit.
In a meeting of the Interim Parliament's Natural Resources and Means Committee, parliamentarians representing NC, CPN (UML), NSP (A), PFN, and United Left Front also asked the government to ensure that SMEC provides free energy from West Seti itself, instead of building another project to give Nepal the free energy.
Furthermore, the parliamentarians told the government to ensure that Nepal gets 10 percent of total generation, instead of just 75 megawatts, as it is possible that the project's installed capacity will cross 750 megawatts.
"We should ask for ten percent free energy from West Seti itself, and we should get the free energy right from the day the project starts generation," said NC's Ananda Dhungana.
Parliamentarians Hridayesh Tripathi of NSP (A) and Lilamani Pokharel of PFN expressed doubts that the project's developer would build another project for providing free energy. They therefore pushed for 10 percent free energy from West Seti itself.
United Left Front's C P Mainali also said that Nepal should ask for benefit in kind instead of cash. Mainali also asked the government why the provision of 10 percent free energy was revised in favor of either free energy or cash, and finally in favor of cash.
However, parliamentarians representing CPN (Maoist) urged the government to halt all decisions on mega projects. Parliamentarians Dinanath Sharma and Lokendra Bista said that the country's priority at the moment is conducting constituent assembly election, and not making decisions on mega projects. RPP's Govinda Bikram Shah concurred with them.
Answering the parliamentarians, Acting Secretary of the Ministry of Water Resources Jitendra Ghimire said that a minute has been signed with SMEC for free energy to Nepal. Ghimire added that the government will ensure increment in free energy to Nepal in the event the project's installed capacity increases.
The government had signed an agreement with SMEC in 1994 for 10 percent free energy to Nepal. The agreement was revised to "either free energy or cash" in 1997, and later to cash benefit in 1998.
In 2003, during the tenure of former Minister of Water Resources Dipak Gyawali, a minute was signed with SMEC stating that the government would identify another project so that SMEC would build it for Nepal for providing free energy. Discussions had taken place then to award the 122 megawatt Upper Seti to SMEC for the purpose.
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