r&d_newsbrief_14thoct

R&D Economic Research & Business

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Date: October 14, 2009

Highlights

• The Finance Section at OPMCM stalled the check for Rs 6 million set to be released in the name of cabinet members and their aides after it ran short of money due to the failure of parliament to approve the budget for the current fiscal year.

• The meeting of the Nepali Congress (NC) Central Working Committee, which was to continue Tuesday as well, was put off owing to internal differences over the promotion of Foreign Minister Sujata Koirala to Deputy Prime Minister.

• Newly appointed Deputy Prime Minister and Minister for Foreign Affairs Sujata Koirala on Tuesday claimed that the support she enjoyed in the party for her new post was overwhelming and dismissed the statements made by acting party president Sushil Koirala and parliamentary party leader Ram Chandra Poudel of her new position as “baseless”.

• A meeting of the three big parties - Unified CPN (Maoist), Nepali Congress and CPN (UML - could not arrive at any decision to resolve the prolonged deadlock, on Tuesday.

• A crucial meeting of the ruling CPN-UML-led alliance and the Nepal Maoists today failed to break the political deadlock, which has disrupted the functioning of the parliament and stalled the peace process.

• UCPN (Maoist) Chairman Pushpa Kamal Dahal is busy holding meetings with leaders of the Communist Party of China (CPC) in Beijing.

• To counter China’s great push to build railway links in South Asia, the Indian Railways has come up with a plan to build links with Nepal and Bhutan.

• Non-Resident Nepalis (NRNs) on Tuesday tagged political uncertainty as one big impediment to investment and urged the government to end transition at the earliest.

• Bureaucrats, experts and non-resident Nepalis (NRNs) on Tuesday highlighted the role of NRNs in promoting the country's economic interests across the world. Terming NRNs "diaspora diplomats", they said that they could promote the country's basic foreign policy goals in the area of the economy.

• It’s almost two years that United Telecom Ltd (UTL) requested Nepal Telecommunication Authority (NTA) to provide it additional frequency but nothing has happened yet.


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• Nepal Telecom (NT) has backtracked from its earlier decision to invest Rs 6 billion in loan for the construction of Upper Tamakoshi hydro-electric project.

• Union Internationale des Associations d’Alpinisme (UIAA), the umbrella organization of the whole world’s mountaineering associations, has decided to organize a global mountaineering convention in Nepal in 2011.

• Farmers in Chadani VDC across the Mahakali River do not worry about losses they suffer due to the death of their cattle as they are covered by insurance. Srijana Saving and Cooperatives has launched a cattle insurance programme in the VDC to protect owners of domestic animals (buffalos and cows) from diseases and accidents and provide compensation to the owners.

• The discussions on the privileges enjoyed by seven hotels inside the Chitwan National Park (CNP) at the Natural Resource and Means Committee of the Legislature-Parliament turned sour after the hoteliers said they faced "humiliation and baseless accusations of looting and smuggling wildlife", during the meeting on Tuesday.

• Prisma Advertising, one of Nepal's leading ad agencies, has announced the initiation of 20 social endeavors to mark its two decades of operation.

• Chinese tourist arrivals have been increasing significantly over the last one decade indicating that China is becoming one of the top markets for Nepal's tourism. Compared to the arrivals from January to September in 2008, Chinese inbound during the same period this year surged by 14.6 percent to 11,583 persons.

• The price of gold rose to a record high in the domestic market on Tuesday, as the yellow metal created a new high in international bullion market. According to Nepal Gold and Silver Dealers Association, gold price rose to Rs 25,635 per 10 grams on the day, up from Rs 25,465 of Monday.

• After sinking to a 27-month low on Monday, the Nepal Stock Exchange (NEPSE) posted a meager 0.43 point gain on Tuesday. The NEPSE index settled at 598.8 points when trading closed.

• Village Development Committee (VDC) secretaries in the troubled Tarai and eastern hill districts have not been able to return to their respective VDCs even after the enforcement of Special Security Plan (SSP).

• At a time when the trend of taking a free ride on everything possible is on the rise, the free medicine facility for blood cancer patients at Bharatpur Cancer Hospital has been under utilised due to lack of public know how, Nagarik daily reported.

• Tatopani customs is heaving a sigh of relief as the practice of collecting forced donations from traders in the name of various organisations has come to an end.


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• Chief of Army Staff Chhatraman Singh Gurung has expressed commitment to implementing the recommendations of National Human Rights Commission (NHRC) on human rights and cooperation in the investigations of the rights watchdog.

• Defense minister Bidhya Devi Bhandari has said the government could give some important responsibility to former Chief of Army Staff (CoAS) Rookmangud Katawal.

• In a breach of diplomatic norms, Nepal’s former ruling party, the Maoists, Tuesday accused the Indian ambassador to Nepal, Rakesh Sood of spying on China, distorting his visit to a mountainous district bordering Tibet to inaugurate community welfare projects funded by the Indian government.

POLITICS:

No salary for PM, ministers till budget passed

The Office of the Prime Minister and Council of Ministers (OPMCM) on Tuesday officially informed Prime Minister Madhav Kumar Nepal and all the other ministers that the office cannot release their salaries this month.

The Finance Section at OPMCM stalled the check for Rs 6 million set to be released in the name of cabinet members and their aides after it ran short of money due to the failure of parliament to approve the budget for the current fiscal year.

Parliament has not been able to pass the budget following continuous obstruction of its proceedings by the Maoists since May. The vote on account bill passed by parliament does not allow the government to spend more than one-third of the total budget.

The Finance Section at OPMCM said that if it releases the salaries for the prime minister and ministers for the current Nepali month, the figure will cross one-third of the budget. The prime minister and ministers should have gotten their salaries by Sunday.

Officials at OPMCM made it clear that they can release this month´s salaries only if the annual budget is passed by parliament or if the finance minister makes a policy-level urgent decision. “Otherwise we cannot release this month´s salaries and we have informed cabinet ministers about this,” an official at OPMCM told myrepublica.com on condition of anonymity. The section generally releases the salaries of the prime minister and other ministers on the 26th, 27th or 28th of the Nepali month.

According to officials, they informed the PM and all the ministers as per instructions received from the Ministry of Finance (MoF) recently. MoF has already instructed all government agencies in writing not to incur expenses out of the limited budget as the annual budget is yet to be passed by parliament.


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“We have collected all details of the salaries to be provided to cabinet members," said an official at the section adding, “We have totaled the salaries which comes to about Rs 6 million, but we have not yet prepared the check in the name of the PM and other ministers due to lack of budget.”

The section releases salaries to ministers and their aides through a single check.

Meanwhile, the ministers have started calling officials at the section for their salaries. The officials said that they are tired of receiving phone calls from ministers and their aides regarding the salaries.

On Tuesday alone, the ministers for foreign affairs, home, physical planning and works, energy, sports and others called up the section for their salaries.

“Though they know about the problem, they have been calling us as if they are totally unaware of the budgetary limitations,” said one official at the section.

The ministers are unhappy about the problem created by the Maoists.

“Those who have been obstructing parliament are responsible for this,” said Law and Justice Minister Prem Bahadur Singh.

He said that the salary problem wouldn´t be confined to the ministers but government employees, Maoist combatants at various cantonments and other sections of society will also be severely affected eventually.

Currently, the prime minister receives Rs 252,000 as collective monthly salary for his team while a deputy prime minister and a minister get Rs 175,000 and Rs 132,000 monthly respectively for their teams. Similarly, a state minister and an assistant minister receive Rs 128,000 and Rs 101,000 as collective monthly salaries for their teams.

Earlier, the finance section of the parliament secretariat had informed lawmakers that it would not release their salaries in advance.

Source: www.myrepublica.com Date: 2009-10-14

NC CWC meeting put off as leaders stand divided over Sujata's elevation to DPM

The meeting of the Nepali Congress (NC) Central Working Committee, which was to continue Tuesday as well, was put off owing to internal differences over the promotion of Foreign Minister Sujata Koirala to Deputy Prime Minister.

NC sources said the meeting was put off in view of possible backlash from central committee members against party president Girija Prasad Koirala, who persistently


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pressured Prime Minister Madhav Kumar Nepal to appoint his daughter as DPM despite the sheer disenchantment of majority of central leaders.

Senior leaders including acting president Sushil Koirala, parliament leader Ram Chandra Poudel, joint general secretary Dr Ram Saran Mahat and party spokesperson Arjun Narsingh K.C have already expressed their discontent over Sujata's promotion.

Likewise, party's youth leaders including Chandra Bhandari, lawmaker Gagan Thaoa and Nepal Student Union president Pradeep Poudel issuing a statement voiced strong objection to Sujata's appointment as DPM.

Source: www.nepalnews.com Date: October 13, 2009

Sujata slams NC leaders against her

KATHMANDU: Newly appointed Deputy Prime Minister and Minister for Foreign Affairs Sujata Koirala on Tuesday claimed that the support she enjoyed in the party for her new post was overwhelming and dismissed the statements made by acting party president Sushil Koirala and parliamentary party leader Ram Chandra Poudel of her new position as “baseless”.

Koirala's remark follows statements made by acting president Sushil Koirala and the NC PP leader Paudel on Monday that she was appointed to the post without the consent of the party.

Rejecting such a claim, Sujata on Tuesday told mediapersons after assuming the office of the DPM that the criticism labelled against her was “groundless”. “I have the huge support from the party rank and file," she said. However, Sujata contradicted her earlier statement and went on to argue that since GP Koirala, party president, appointed Sushil as an acting party president and Ram Chandra as general secretary and vice resident without consulting the party, she also deserved the appointment without consultation in the party.

“My case is the same as theirs but why are they criticising my appointment?” Sujata asked.“I have felt the great responsibility towards the nation after becoming the DPM," she added. Koirala’s appointment was allegedly sought by GP Koirala.

Source: www.thehimalayantimes.com Date: 2009-10-13

Three-party meet inconclusive

A meeting of the three big parties - Unified CPN (Maoist), Nepali Congress and CPN (UML - could not arrive at any decision to resolve the prolonged deadlock, on Tuesday.

The meeting ended indecisively as the NC disapproved the amendment proposed by the Maoists on the 'draft of consensus' prepared by the NC and UML. In the amended


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draft, the Maoist side mentioned that the step taken by the President over the army chief row was unconstitutional.

NC leaders reiterated that the President's move could not be called unconstitutional, but it could be mentioned in the background of the current deadlock.

On the other hand, UML leaders asked both NC and Unified CPN-Maoist to show flexibility and come to middle ground.

The three parties will again sit for talks on Thursday.

Prior to the three-party meet, senior leaders of NC and UML had met to discuss a possible way out of the deadlock. At the meeting, NC leaders stood firm in their stance over the Maoist proposal.

No end to House obstruction

With no breakthrough in the three-party talks, the Maoist party continued to obstruct the parliamentary business.

Maoist lawmakers came to the rostrum and started chanting slogans, forcing the speaker to adjourn the day's sitting.

Next parliament sitting will take place at 3 pm Thursday.


Nepal parties fail to break political deadlock

Kathmandu: A crucial meeting of the ruling CPN-UML-led alliance and the Nepal Maoists today failed to break the political deadlock, which has disrupted the functioning of the parliament and stalled the peace process.

The CPN (UML), Nepali Congress and Unified CPN (Maoist) failed to arrive at a consensus with regard to draft to be introduced in the 601-member Constituent Assembly, which functions as the Parliament, to end the deadlock over the role of President Ram Baran Yadav in the row linked to the controversial reinstatement of former army chief General Rukmangad Katawal.

The Nepali Congress, the largest party in the 22-party ruling alliance, disapproved a Maoists' amendment, which said the reinstatement of Katawal by the President was "unconstitutional", the nepalnews online said. It was firm that the President's move could not be called "unconstitutional".

The Maoists have been blocking the Parliament and organizing protest rallies since Prachanda resigned as Prime Minister on May 4 after President Yadav reinstated General Katawal, who has now retired.


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Describing President Yadav's move to reinstate General Katawal as "unconstitutional and undemocratic", Prachanda has said he had fired the then army chief to maintain "civilian supremacy" in the country.

Source: www.samaylive.com Date: October 14, 2009

Dahal keeps his schedule tight in China

Kathmandu - UCPN (Maoist) Chairman Pushpa Kamal Dahal is busy holding meetings with leaders of the Communist Party of China (CPC) in Beijing.

It has been learnt that Dahal, who is on a week-long visit to China, has held extensive talks—ranging from bilateral relations, contemporary politics and ways to strengthen ties between the two parties—with senior CPC leaders in the Chinese capital.

“Ideological as well as practical issues are major agendas of discussion,” foreign department chief of the Maoists, Krishna Bahadur Mahara, who is accompanying Dahal to Beijing, said over the phone.

Dahal’s is in Beijing along with his son Prakash Dahal, party’s Vice-Chairman Mohan Baidya and Mahara. As part of his marathon parleys with the Chinese leaders, the Maoist chairman is also scheduled to meet the Chinese President and CPC General Secretary Hu Jintao. However, a date is yet to be fixed, said Mahara.

On Monday, Dahal and his team had interaction with Jia Qinglin, member of the Standing Committee of the CPC Central Committee Political Bureau. Dahal team and the Chinese leaders have also discussed Nepal-China relations besides a wide range of political issues, including the South Asian politics.

According to Mahara, the Chinese leaders have attached high value to Nepal’s peace process and constitution drafting. The visit assumes significance as this is the first time the Maoist leaders have engaged in ‘serious interaction’ with the leaders of the northern neighbor. China has always expressed its willingness to work with Nepal to improve cooperation. According to the UCPN (Maoist), the visit mainly focuses on strengthening ties between the two countries and improving relations between the two parties.

This is Dahal’s second visit to China. Earlier, Dahal had visited Beijing in August last year in the capacity of prime minister. Dahal’s visit had snapped the long-standing tradition of Nepali prime ministers who usually visit India before embarking on any official foreign trip.

Source: www.ekantipur.com Date: October 14, 2009


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POLICY:

India vies with China, plans 6 Nepal rly links

To counter China’s great push to build railway links in South Asia, the Indian Railways has come up with a plan to build links with Nepal and Bhutan.

A senior Railways Ministry official said on condition of anonymity that Rail India Technical and Economic Services (RITES) had been commissioned to conduct feasibility studies on six railway links with Nepal and three with Bhutan.

China, at Nepal Prime Minister Madhav Nepal’s invitation, has already drawn up plans to extend its 1,956-km-long railway line, connecting Qinghai province and Tibet across the Tibetan plateau, to Kathmandu.

China also pitched in with proposals to build an internal railway network in Nepal, news reports from Kathmandu said. What’s more, reports from Beijing indicated that China would construct a link to Pakistan through the Karakoram Highway, besides linking with Bangladesh via Myanmar.

Over the past few months, India stepped up diplomatic initiatives to neutralize China’s advantage in the region. India’s Ambassador to Nepal Shiv Shankar Mukherjee told reporters in Kathmandu last July: “To forge better connectivity between Kathmandu and Delhi, India is considering bringing railway lines into Nepal.”

The Indo-Nepal routes being surveyed include six lines — from Raxaul, Jogbani and Jayanagar in Bihar to Birgunj, Biratnagar and Bardibas; Nautanwa and Nepalgunj Road in Uttar Pradesh to Bhairahawa and Nepalgunj, and New Jalpaiguri in West Bengal to Kakarbhitta.

There exists only one rail link between India and Nepal, between Jayanagar and Janakpur.

“Some of these alignment surveys have been completed, while others are at an advanced stage,” said RITES MD V K Agarwal.

For Bhutan, the railways conducted internal surveys of three links – from Pathshala and Kokrajhar in Assam to Nanglam and Gelephu and Hashimara in West Bengal to Phunt Sholing. The cost of these projects is estimated at Rs 1,000 crore

Source: www.hindustantimes.com Date: October 14, 2009


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Political uncertainty deterrent to NRN investment

Non-Resident Nepalis (NRNs) on Tuesday tagged political uncertainty as one big impediment to investment and urged the government to end transition at the earliest.

“Certainty is one big boost to investment. The government must seriously work to assure it to NRNs,” said Sanjiv Subba, an NRN from Thailand.

On the first day of the fourth NRN Global Conference, the NRNs suggested the government to improve law and order situation to create the investment climate. During the technical sessions of the conference, NRNs on the day volleyed lesser demands than the past, while the government officials too were much more positive.

At an interaction on ´Foreign Employment, Migration and Remittance: Challenges and Opportunities in the face of Global Financial Crisis´, experts sought more cooperation from NRNs for better management and expansion of the overseas employment sector. They also asked NRNs to contribute more on exploring new job opportunities and protecting the rights of Nepali workers in the overseas destinations.

“NRNs should make more contribution in exploring new labor destinations and also lobby for the welfare of Nepali workers, especially given that employment opportunities within the country has been shrinking,” said Sarat Dash, chief of mission of the International Organization of Migration- an inter-governmental organization. He also asked the Nepali diaspora to uphold the contribution of Nepalis for the development of host countries and also work in close cooperation with Nepali diplomatic missions to ensure rights and safety of Nepali migrants.

Although ongoing financial crisis has severely impacted workers from other exporting countries, only 214 Nepalis are reported of being laid-off so far due to the global economic slowdown.

“Nepali diaspora must also engage with the host countries´ government to lobby for the greater rights of Nepali workers and safe return of those who are in trouble in foreign land,” said Dash.

Mohan Krishna Sapkota, director general of Department of Foreign Employment, said dealing with problems of Nepali workers in trouble is getting more complex as half of around three million Nepali migrants have moved out in different labor destinations undocumented and subject to different mistreatments in overseas destinations.

Open border, lack of training, insufficient diplomatic missions in labor destinations, paucity of government resource to deal with different challenges facing foreign employment sector are some of the problems in foreign employment.

Dr Asif Ali Siddiqui, NRN representative from the United Arab Emirates (UAE), proposed establishment of a business network among NRNs to channelize and support productive utilization of remittances.

Siddiqui also stressed on the need of producing skilled workers in the country through vocational trainings to ensure better job opportunity in labor destinations. According


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to conservative estimate, around 75 percent of Nepali overseas workers are unskilled, 20 percent semi-skilled and 5 percent are skilled.

Tilak Ranabhat, the president of Nepal Association of Foreign Employment Agencies, urged the NRNA not to undermine the role of Nepali manpower agencies in exploring overseas job opportunities to Nepali youths.

Nepali business community, on the other hand, called upon the NRNs to invest on hydropower, infrastructure, manufacturing and other service sectors.


NRNs urged to act as ‘diaspora diplomats’

Kathmandu - Bureaucrats, experts and non-resident Nepalis (NRNs) on Tuesday highlighted the role of NRNs in promoting the country's economic interests across the world.

Terming NRNs "diaspora diplomats", they said that they could promote the country's basic foreign policy goals in the area of the economy by directly involving themselves in the activities of Nepali missions abroad and providing correct information about Nepal to foreigners.

"Their direct investment in Nepal and encouragement to other foreign investors to make investments in Nepal are other tasks they can do," they said at an interaction entitled "Economic Diplomacy: How NRNs Can Contribute" at the ongoing fourth conference of NRNs in Kathmandu.

Foreign secretary Gyan Chandra Acharya said that Nepal's economic diplomacy has five goals: expanding exports, attracting foreign investment, receiving more foreign aid in a just way, promoting foreign employment for greater benefit to Nepal and Nepalis and promoting Nepali tourism.

"NRNs can coordinate with Nepali embassies abroad to meet these objectives from their part," he said.

He added that given their expanded linkage with the society of the host country, they could work to promote Nepali products and culture and ask their foreign friends to visit Nepal.

Vice chairman of the National Planning Commission Yubaraj Khatiwada said that NRNs could help in advancing Nepal's economic interests by connecting the private sector of a foreign country with the Nepali embassy and encouraging them to put money in Nepal.


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"You can also encourage Nepali embassies abroad to do more in the area of economic diplomacy by taking a greater interest in the embassy's work," he told participating NRNs at the session.

He also urged them to become "goodwill ambassadors" to save the Himalaya from the increased melting of ice due to climate change. "How can you attract foreign tourists here if there is no ice on the Himalaya?" he asked.

Former finance and foreign minister Prakash Chandra Lohani said ideology mattered less than economic development in today's world considering the changed context of a convergence of different ideas expressed in the form of multi-party democracy and functioning free market.

"This is an era of competition and economic benefit," he said, adding that diplomacy should be centered on enhancing Nepal's economic competitiveness. Economist Dilli Raj Khanal said that there should be a durable mechanism of the government, the private sector and NRNs to promote Nepal's economic interest abroad.

NRN from Australia Shesh Ghale said that NRNs' returning to the country was itself a brain gain for the country in addition to their investment and their role in encouraging foreigners to invest in Nepal.

Another NRN from Japan Bhaban Bhatta asked the government to accord recognition to capable NRNs as diaspora diplomats to encourage them to do more for the country.


BUSINESS & ECONOMY:

NT not to invest in Upper Tamakoshi unless it gets share

Nepal Telecom (NT) has backtracked from its earlier decision to invest Rs 6 billion in loan for the construction of Upper Tamakoshi hydro-electric project, Nagarik daily reported.

NTC backtracked from its decision after Minister for Information and Communications Shankar Pokhrel directed it not to invest in the project unless equity share worth the amount is given to NT.

Earlier, a joint task force comprising representatives of NT and Nepal Electricity Authority (NEA) had decided NT would invest Rs 6 billion as loan in installments for the project.


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The 456 MW hydel project aimed to be completed in four years requires about Rs 42 billion. The project plans to have 30 percent of the cost as share investment and the remaining as a loan.

Minister Pokhrel told NT officials that NT should invest the amount in the form of share as NEA management is incapable and politicised.

The minister has said NT’s investment should be in the form of equity share. We agreed with it, a highly placed NT official said.


UTL desperate to get frequency expansion, NTA down its thumb

KATHMANDU: It’s almost two years that United Telecom Ltd (UTL) requested Nepal Telecommunication Authority (NTA) to provide it additional frequency but nothing has happened yet. UTL general manager Madan Singh said, “It’s been ore around two years that UTL has been asking NTA to grant it two carriers but NTA has turned a deaf ear to the plea. If we don’t get frequency expansion, we cannot upgrade serivices or attract more customers.”

Singjh said to improve service quality and fulfil growing customer demand UTL needs additional frequency. Currently, it has only two frequencies of a total 2.5 Mega Hertz (MHz) — meaning one carrier has 1.25 MHz. “We have been repeatedly urging NTA and the Ministry of Information and Communications (MOIC) for additional frequency but to no avail,” said Singh adding that UTL is in an overhaul and reform process and the lack of additional is no frequency is hurting operations and business. However, NTA director Ananda Raj Khanal scoffed at the allegations saying they were baseless. “UTL demanded the frequency when there was no frequency left. If it had asked for frequency earlier, it would have been possible but at present we lack frequency,” said Khanal. He added that NTA itself is undergoing study and observation and said, “If there is no interference between GSM900 and CDMA800 guardband after deduction of one carrier of 1.25 MHz, NTA can positively consider one more carrier for UTL.” Khanal also said that UTL is running its CDMA under 1900 band and the international power band is 800 which is more economical. He said that though there was a shortage NTA had earlier granted UTL 2 carriers from Nepal Telecom.

Singh countered, “Due to lack of frequency we are also facing a loss of Rs 250 million. As we do not have sufficient frequency, our operations are pending though our equipment has inbuilt Evolution Data Optimisation (EVDO). We are not able to launch our service even though we have already invested Rs 250 million in equipment,” said Singh.

Established on September 17, 2003, UTL is on its way to facilitate its customers with number of services. With a total of 2.35 lakh customers till date, UTL provides the


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cheapest call rate to India at Rs 3 per minute excluding taxes, said Singh. It charges Rs 0.50 per SMS UTL to UTL and Rs 1 per SMS from UTL to NTC and UTL to Mero Mobile. UTL’s charge for all non-India international call is for Rs 5 per minute, excluding taxes. UTL provides its services in 32 districts and has targeted to cover all 75 districts within six months.


Nepal to host UIAA

KATHMANDU: Union Internationale des Associations d’Alpinisme (UIAA), the umbrella organization of the whole world’s mountaineering associations, has decided to organize a global mountaineering convention in Nepal in 2011. The annual general convention of UIAA held in Portugal on October 6-10 took the decision at the request of Nepal. Nepal Mountaineering Association president participated in the Portugal convention. — HNS

Apartment bookings

KATHMANDU: Lifestyle Housing Group has opened the booking of Status Enclave apartments located at Sanepa Heights of Lalitpur district. The group has targeted it at Non-Resident Nepalis (NRNs) and the bookings opened during the inaugural of the fourth global conference of NRNs here. According to the company, 60 per cent construction of the apartment is complete. — HNS


Kanchanpur VDC starts cattle insurance

Mahendranagar - Farmers in Chadani VDC across the Mahakali River do not worry about losses they suffer due to the death of their cattle as they are covered by insurance.

Srijana Saving and Cooperatives has launched a cattle insurance programme in the VDC to protect owners of domestic animals (buffalos and cows) from diseases and accidents and provide compensation to the owners.

The company pays Rs. 50,000 collected from the 100 farmers and Rs. 50,000 provided by the District Livestock Service Office as compensation. So far 12 farmers have insured their cattle and an increasing number are applying for livestock insurance.


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Farmers who earlier suffered tremendous losses following the deaths of their cattle say the insurance programme has come as a big relief for them.

If insured cattle die within a year, the company after a thorough evaluation provides compensation of up to 80 percent. It also conducts health checkups of insured cattle four times in a year. With its endeavor yielding success, the financial institution has a plan to spread out the cattle insurance programme to other VDCs in Kanchanpur district.


Chitwan hoteliers 'humiliated' at parliamentary discussion

The discussions on the privileges enjoyed by seven hotels inside the Chitwan National Park (CNP) at the Natural Resource and Means Committee of the Legislature-Parliament turned sour after the hoteliers said they faced "humiliation and baseless accusations of looting and smuggling wildlife", during the meeting on Tuesday.

Earlier, citing a report from the Department of Wildlife and National Park, Joint Secretary at the Committee Dr Rabi Sharma Aryal had said most of the rhinos and tigers in the park have been found killed near the hotels. "Was the national park made for biodiversity conservation or hotel operations?" he added.

Similarly, local conservation activist Basudev Dhungana, who was also invited to the committee meeting, had accused the hoteliers of "looting". He had also accused them of evading tax while enjoying exclusive rights of operating hotels inside CNP at the cost of wildlife.

The barrage of accusations was enough to upset the hoteliers. "Were we invited to the meeting to be humiliated?" asked Bharat Basnet, owner of Rhino Wildlife Camp Nepal situated inside the CNP, at the end of the meeting, pointing his finger at the subcommittee chairman Ramesh Rijal. The parliamentary committee had formed a subcommittee led by Rijal to study the issue. Rijal said he would apologize if the hoteliers felt hurt by the remarks of the participants.

The subcommittee had invited the stakeholders and Minister for Forests and Soil Conservation Deepak Bohara for discussion. There are seven hotels inside CNP that enjoy exclusive rights to operate inside the CNP, which is also a UNESCO world heritage site. Their 15-year contract with the government to operate hotels there ended two months ago.

Earlier the Public Accounts Committee (PAC) of the parliament had decided to extend their contract for up to three years saying it would be wrong to remove the hotels from the CNP as the country is all set to mark 2011as tourism year. But the Natural Resources and Means committee took up the issue claiming that forest resources fall under its jurisdiction.


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Most lawmakers who spoke during the meeting opined that the hoteliers should be immediately evicted from the CNP as the law bars anyone from enjoying exclusive rights to public property. "It will be unfair to allow them to enjoy exclusive rights to operate hotels inside CNP, while barring the locals from using the resources there. They should immediately pack up," said Maoist lawmaker Hari Rokka.

Also speaking at the meeting Minister Bohara said he is confused and cannot take a decision as the two parliamentary committees have taken up the issue. He said he is under tremendous pressure from the Federation of Nepalese Chambers and Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI) and other organizations to let the hotels operate till 2011, the year the government is celebrating as a tourism year. "Ministry of Forests and Soil Conservation is under this committee, and we issue directive to you. And we leave it to you to decide what is right," said Subcommittee chairman Rijal. According to an official, the committee is all set to direct the government to remove the hotels from the CNP.


Prisma announces social projects

Kathmandu - Prisma Advertising, one of Nepal's leading ad agencies, has announced the initiation of 20 social endeavors to mark its two decades of operation.

CEO Ranjit Acharya, speaking at a press meets on Tuesday, said, "We have committed ourselves to accomplishing 20 different social projects within a year to mark our two decades of service."

As part of the initiative, Prisma organised a blood donation programme on Oct. 11. Acharya announced that it would be carrying out a nationwide blood donation effort entitled Volunteer. He said, "The blood shortage in the nation is far more critical than what we perceive it to be. We have initiated this programme calling all donors to donate blood when and where possible."

With the objective of supporting and promoting economic journalism, the agency as its third endeavor handed over a cheque for Rs. 50,000 to the Society of Economic Journalists of Nepal (SEJON). Establishment of a food bank and a programme for street children are some of the other initiatives which the agency will be carrying out in the next 12 months.



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Chinese tourist arrivals up 14pc

Kathmandu - Chinese tourist arrivals have been increasing significantly over the last one decade indicating that China is becoming one of the top markets for Nepal's tourism.

Compared to the arrivals from January to September in 2008, Chinese inbound during the same period this year surged by 14.6 percent to 11,583 persons. Arrivals had declined 2 percent in 2008 due to political instability, protests, strikes and bandas, said tourism entrepreneurs. In 1999, Nepal hosted only 3,977 Chinese tourists.

Even if the China has been recognized as one of the major tourist source countries, there is no official data on the arrival of tourists before 1996. According to a report on tourist arrivals in Nepal, India was the number one market for Nepal in 1998. It remained in the top position till September 2009.

Tourism experts said that increased flights between Nepal and China mainly supported the growth in tourist arrivals. But still, tourist arrivals from China are less than from India. Till September, a total of 65,967 Indian tourists had visited Nepal, whereas arrivals from China numbered 11,583 persons. Every year, 450,000 Chinese tourists visit India.

Entrepreneurs said that promotional programmes conducted by tourism organizations such as the Nepal Association of Tour and Travel Agents (NATTA) and the Hotel Association Nepal (HAN) played an effective role in increasing Chinese arrivals in Nepal.

"We are trying to attract at least some percentage of the Chinese tourists visiting India," said NATTA president Ram Kaji Koney. "Similarly, the increase in the number of direct flights between Nepal and China has also supported the increasing growth."

Earlier, Air China and China Southern used to operate flights to Nepal. Now, China Eastern Airlines has also started to operate direct flights between Kunming and Kathmandu. According to these airlines, their occupancy rate is over 80 percent.

"As the airlines have made it easy to experience a country rich in diversity within four hours, the Chinese people's interest in Nepal has increased," said Koney. He added that after the operation of the new flights, the price of air tickets had also gone down comparatively.

Tourism experts said that the exchange facility provided to the Chinese yuan had also made it convenient for Chinese tourists visiting Nepal.


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Chinese tourist arrivals by air

Year Arrivals Percent 2000 3,924 9.7 2001 3,968 1.33 2002 3,490 -12 2003 4,418 27.5 2004 5,799 31.25 2005 6,423 10.7 2006 6,531 1.6 2007 14,426 120.8 2008 14,076 -2.4 2008 (Jan - Sept) 10,108 23.2 2009 (Jan - Sept) 11,583 14.5


MARKET:

Gold price reaches new high in domestic market

The price of gold rose to a record high in the domestic market on Tuesday, as the yellow metal created a new high in international bullion market.

According to Nepal Gold and Silver Dealers Association, gold price rose to Rs 25,635 per 10 grams on the day, up from Rs 25,465 of Monday. The previous high of Rs 25600 per 10 grams was recorded on September 17.

Similarly, silver too is being traded in the country at the record high prices of Rs 441.50 per ten grams over the last few days.

20 social activities to mark 20 years

Prisma Advertising Agency has announced social activities to celebrate its anniversary. The firm said Tuesday that it would be performing 20 social endeavors to commemorate 20 years of its operation.

Issuing a statement, the firm said it was committed to accomplish the social works within a year. The first of these activities was a blood donation organized at its office


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premises in Kathmandu on Sunday. The company has also launched a nationwide blood donation drive that it has dubbed VolUnteer.

The firm also announced an annual cash prize of Rs 50,001 for the best economic journalist of the country. The firm said in the statement that it had handed over Rs 11,001 to journalist Gajendra Budhathoki who was partially paralyzed after an accident last year.


NEPSE crawls up 0.43pt

Kathmandu - After sinking to a 27-month low on Monday, the Nepal Stock Exchange (NEPSE) posted a meager 0.43 point gain on Tuesday. The NEPSE index settled at 598.8 points when trading closed.

After five days of continuous downfall, NEPSE has managed to pull up from the dive. The sub-indices on NEPSE showed a mixed reaction. While the hydropower and banking sectors recorded gains on Tuesday, development bank and finance posted losses. The hydropower sector was the highest gainer increasing by 3.27 points.

The finance sector was the highest loser shedding 2.58 points.

The share market witnessed a total turnover of Rs. 48.82 million with 78,754 shares being traded. Shares of 63 companies changed hands on NEPSE.

Among the 24 commercial banks present on the trading floor, Laxmi Bank posted the biggest growth with its stock rising by 34 points.

Similarly, among the 13 development banks whose shares were traded Clean Energy Development Bank witnessed the highest increase of 10 points.


GENERAL:

Security plan no relief to VDC secretaries in districts

Village Development Committee (VDC) secretaries in the troubled Tarai and eastern hill districts have not been able to return to their respective VDCs even after the enforcement of Special Security Plan (SSP).


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They continue to shy away from going back to their duty stations as a number of armed groups operating in the areas have not stopped extortion and issue threats to their lives for failing to meet their donation demands.

Bhuwani Prasad Ghimire, President of VDC Secretaries Welfare Protection Center, said the security plan has not brought any substantial improvement in security situation in the villages yet. “Donation terror continues in the villages in the eastern Tarai and hilly districts even though the cases of kidnappings have come almost to a halt in the recent weeks,” he said.

The center is the umbrella organization of VDC secretaries working in 3,915 VDCs across the country.

Ghimire said VDC secretaries are still carrying out their duties from district headquarters as they are yet to be assured of their personal safety and that they will not have to face trouble from the armed outfits active in the region. “How would you dare to go to the villages when there is no guarantee of your personal safety?” asked Ghimire. “The VDC secretaries have been the prime target of armed groups as the representatives of local bodies are not in place.”

According to Home Ministry, as many as 109 armed groups are operating in various parts of the country, mostly in eastern Tarai and hilly districts.

People in the VDCs sans secretaries are deprived of getting basic government services such as VDC´s recommendations for citizenship, land purchase, and registration of vital events like birth, death, marriage and migration. Among others, the absence of VDC secretaries has also affected distribution of social security allowance to elderly, differently abled and destitute persons.

While some 300 VDC secretaries retired under the Voluntarily Retirement Scheme recently, 200 more positions of VDC secretaries are vacant for the last three years. The tendency of VDC secretaries to reside in district headquarters for fear of extortion has not only made ordinary people to face burnt of the problem, but also caused serious administrative vacuum in the villages.

Security experts argue that ensuring effective law and order situation is not possible unless there are functioning local government bodies in the villages. “We are ready to go back to the villages if there is security guarantee,” added Ghimire. “No such assurance has come from the government so far.”



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Bharatpur cancer hospital providing blood cancer drug for free

At a time when the trend of taking a free ride on everything possible is on the rise, the free medicine facility for blood cancer patients at Bharatpur Cancer Hospital has been under utilised due to lack of public know how, Nagarik daily reported.

We provide free medicine for blood cancer patients who have undergone treatment in any hospital of the country, said Bhakta Man Shrestha, executive director of the hospital.

We have asked many hospitals to send blood cancer patients who cannot afford the cost of the medicine to us, but we have not got patients as expected, Shrestha said.

The hospital has been providing such service since past six years with support of an American drug company Novartis.

Although the number of blood cancer patients could be much higher, only 246 patients have availed the service so far, Pyuthan's journalist Bindu Pariyar being the latest one.

According to Shrestha, a patient needs to take medicine worth up to Rs 150000 per month for lifelong.

When a blood cancer patient comes to us and it is established she/he cannot afford the cost of the medicine, we send all related documents by email to the company and it sends the medicine in the name of the patient itself.


Tatopani traders free from donation terror

Chautara - Tatopani customs is heaving a sigh of relief as the practice of collecting forced donations from traders in the name of various organisations has come to an end.

Earlier, mushrooming organisations established in the name of several political parties and social welfare organizations had been competing to collect forced donations thereby disturbing business life.

Panicked by the donation terror, the umbrella bodies of businessmen and traders decided to end the donation collection drives. The Sindhupalchok Chamber of Commerce and Industry (SCCI) took a decision and informed all that no donation could be collected from now onwards, according to SCCI chairman Rajendra Kumar Shrestha. Similarly, the Nepal Trans-Himalaya Border Commerce Association also held a meeting and decided to end the culture of donation, said its chairman Durga Bahadur Shrestha.


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The administration has beefed up security to discourage those involved in donation collection. "Security on the Arniko Highway has been upped to rein in donation collectors," said Chief District Officer of Sindhupalchok Govinda Sapkota.

The three major political parties -- Unified CPN (Maoist), Nepali Congress and CPN-UML -- have established their own trade organisations in Tatopani.

Traders have been harried after nine different organisations started collecting up to Rs. 9,000 per container as donation.


Army chief pledges cooperation in implementing NHRC recommendations

Chief of Army Staff Chhatraman Singh Gurung has expressed commitment to implementing the recommendations of National Human Rights Commission (NHRC) on human rights and cooperation in the investigations of the rights watchdog.

CoAS Gurung made his commitment during a meeting with NHRC commissioners held at the commission's office in Pulchowk Tuesday. He said NA was ready for "further cooperation in order to promote and protect human rights of people".

NHRC chairperson Kedarnath Upadyay urged the NA Chief to help in execution of NHRC recommendations related to NA. Issues related to capacity building of NA personnel on human rights promotion and protection were also discussed at the meeting, a press statement issued by the rights body said.

NHRC members Ram Nagina Singh, Gauri Pradhan, Dr. Leela Pathak, Dr. K. B. Rokaya, Secretary Bishal Khanal, NA Chief of Adjutant Department Nepal Bhushan Chand and Brigadier General Nirendra Aryal of the Human Rights Directorate were also present during the interaction.


'Katawal could be get important responsibility'

Defense minister Bidhya Devi Bhandari has said the government could give some important responsibility to former Chief of Army Staff (CoAS) Rookmangud Katawal. He has done a good job, he could get some important responsibility, minister Bhandari told Annapurna Post daily. Everyone should appreciate Katawal's contribution in establishing people's supremacy and uniting the institution (Nepal Army).


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However, Bhandari did not disclose what kind of responsibility would be given to Katawal.

Bhandari reiterated her position on Comprehensive Peace Accord (CPA). The CPA should not be taken as a part of the constitution and be amended, she said. Maoist leadership had severely criticised her remarks about the amendment of CPA before a parliamentary committee, last week.


Nepal Maoists accuse Indian envoy of spying on China

KATHMANDU: In a breach of diplomatic norms, Nepal’s former ruling party, the Maoists, Tuesday accused the Indian ambassador to Nepal, Rakesh Sood of spying on China, distorting his visit to a mountainous district bordering Tibet to inaugurate community welfare projects funded by the Indian government.

Sood had been on a visit to Mustang, Nepal’s northernmost district that was part of an ancient Tibetan kingdom in the past and shares a border with Tibet. In the past, after China invaded Tibet, the Buddhist kingdom’s Khampa soldiers loyal to the Dalai Lama had waged a guerrilla war against the Chinese rulers from Mustang.

Its proximity to Tibet makes upper Mustang a sensitive area where foreigners need a permit to travel. China remains anxious about Mustang and in the recent past, the Chinese ambassador to Nepal, Qiu Guhong, had also visited the district.

“A jumbo Indian team including envoy Rakesh Sood arrived in the mountainous district of Mustang Friday to spy on China in the name of inspecting the progress of the development projects funded by the Indian government,” Nepali daily Janadisha, the Maoist mouthpiece, said Tuesday. It also said that the team was in Mustang to assess the influence of the Chinese government in the area.

However, contrary to the Maoist allegation, there was nothing opaque about the visit. Last week, the Indian Embassy in Kathmandu had issued a press statement, saying the Indian envoy would be in Mustang from Oct 8-16. During the visit, Sood handed over two newly constructed school buildings to the authorities of the Shree Jana Adarsh Secondary School in Kobang and Shree Jana Shanti Secondary School in Kagbeni, built at a cost of NRs.3.5 million.

On Monday, the ambassador handed over a newly constructed water tank for the Shree Mahakaruna Sakyapa Vidyalaya at Lomangthan in Upper Mustang to the local community. The school is among the oldest monastic schools and the government of India had earlier provided grant assistance of NRs.2.5 million for the school building, a hostel, a monk’s quarters and teachers’ quarters. India has now provided an additional grant of NRs.10.8 million for the construction of the water tank as part of the India-Nepal Economic Cooperation Programme. The programme, with an outlay


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over NRS 25600 million, runs more than 350 large and small projects countrywide in Nepal in the sectors of education, health and infrastructure development.

The ambassador, who was scheduled to go trekking in Mustang after the handover ceremonies, however cut his visit short and headed for Kathmandu Tuesday. It was not known immediately if his return was the fallout of the Maoist propaganda.

Nepal’s foreign ministry admitted the propaganda was against diplomatic norms but said they were helpless to stop it. The Maoists, despite having led the government for eight months, have kept up a siege on parliament for nearly four months with the government unable to resolve the impasse.

Source: timesofindia.indiatimes.com Date: October 14, 2009

r&d_newsbrief_14thoct

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