r&d_newsbrief_21staug

R&D

Economic Research & Business Development

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Date: August 21, 2009

Highlights

• Prime Minister Madhav Kumar Nepal has described his ongoing India visit as a success. Speaking to a group of Indian intellectuals and editors at Hotel Oberoi in New Delhi, where he has been staying, PM Nepal said the visit has been fruitful in further consolidating the existing ties between Nepal and India.

• Prime Minister Madhav Kumar Nepal has been trying to restore mutual trust and gain India’s confidence in his ability to deliver peace and stability in the country.

• The government of India has committed about Rs 32 billion aid for various development projects and has also agreed to sign the Trade Treaty, much to the relief of the Nepali side.

• India has pledged assistace of Rs.20 billion to Nepal for infrastructure projects, Finance Minister Pranab Mukherjee told visiting Nepali Prime Minister Madhav Kumar Nepal.

• Prime Minister Madhav Kumar Nepal has said one of the major concerns India has with Nepal is the flow of fake Indian currency to India through Nepal. The other two concerns are Nepal being used for terrorist activities directed at India and the use of madrasas for anti-India activities.

• Former prime minister and chairman of UPCN-Maoist Puspha Kamal Dahal claimed that the government led by Prime Minister Madhav Kumar Nepal had failed as it could not ink any trade treaties with India.

• A day after the Nepali Congress Central Committee meeting formally deplored Foreign Minister Sujata Koirala’s misadventure not to become a part of the PM’s New Delhi entourage, the United Marxist Leninists -party leading the government, too has demanded formal explanations from Sujata for the last minute cancellation of her trip to India.

• Unified CPN-Maoist chairman Pushpa Kamal Dahal ‘Prachanda’ today said discussions were already initiated for the formation of a new government under the leadership of his party.

• In a bid to introduce specalised hearing of cases, Chief Justice (CJ) Min Bahadur Rayamajhi today set up three panels’ of justices in the Supreme Court.The CJ introduced three separate panels - for writ and commercial issues, criminal cases and civil cases — that will look into specific cases from Sunday.

• The Committee to Determine the Forms of the Governance under the Constituent Assembly (CA) has finalised its concept on the formation and

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functioning of government service, prioritizing the representation of backward groups in the state organ.

• New Delhi, Aug 20 Uttar Pradesh Chief Minister Mayawati today sought cooperation of Nepal Prime Minister Madhav Kumar Nepal for curbing cross border smuggling of drugs, fake currency and illegal arms along the open Indo-Nepal border touching the state.

• The Chairman of the Unified Communist Party of Nepal- Maoist Pushpa Kamal Dahal alias Prachanda has made it clear that the main agenda of the party of the ex-rebels was to establish a Peoples’ Republican Order and the State Capture.

• State Minister for Energy Chandra Singh Bhattarai has said that preparations to import 50 MW of electricity from India is in final phase.Talking briefly to national news agency RSS on his way to Kathmandu Thursday, he said that the government is sensitive to end energy crisis.

• Parliamentary Public Hearing Committee of the legislature-parliament approved Dr Shankar Sharma and Rukma Shumsher Rana’s appointment as envoys to the United States and India, respectively, on Thursday.

• The state-owned monopoly, holding charge of the country’s entire electricity production and supply system, Nepal Electricity Authority (NEA), believes that an SLC makes one eligible for promotion to the post of mechanical engineer, equivalent to a sixth-level government officer.

• Rastriya Banijya Bank (RBB) has not been able to sell its promoters' shares of Nepal Investment Bank as per Nepal Rastra Bank's (NRB) direction as the Security Board of Nepal (SEBON) was not satisfied with the minimum price quoted by the bank.

• Nepal Rastra Bank (NRB) is planning to blacklist Indonesian note printing company Perum Peruri, citing a serious lacking on the part of the security printing company. The NRB made the move after it found that some units of unauthorized Rs 1,000 notes had sneaked into the market.

• Global Bank Limited and Nepal Telecom have reached an agreement which enables consumers to pay the telephone and mobile bills through the bank’s internet banking facility or from any of its branches.

• Maoists have warned they would struggle to end the "monopoly of state and some big households in the media” and enhance the access of commoners to this sector.

• Ministry of Labor and Transport Management (MoLTM) has appointed four labor attaches in key labor destinations, eight months after the cabinet took a decision to this effect. According to Mohan Krishna Sapkota, director general of the Department of Foreign Employment (DoFE), under secretaries Surya

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Bhandari and Binod Khanal have been appointed as labor attaches for Malaysia and Saudi Arabia respectively.

• Though the government had declared more than a month ago in the budget announcement that the transport syndicate system would be ended, taxi operators at Pokhara airport are still practicing it and overcharging passengers.

• Retired workers of Janakpur Cigarette Factory (JCF) have launched a protest against the JCF management, demanding immediate release of their salary and gratuity amounts. They have also warned to organize a series of protests if their demands are not addressed by Sunday.

• With two more persons testing positive for swine flu in Nepal, the total number of infected people has reached 22 in the country, the health ministry has said.

• The police have arrested a fake doctor for his involvement in number of crime charges, including abduction and murder. The arrested, according to the police, has been identified as Prabin Pradhananga of Bhimsensthan, who was swindling people and even kidnapping some for huge ransoms since the last 10 years.

POLITICS:

PM describes his India trip as fruitful

Prime Minister Madhav Kumar Nepal has described his ongoing India visit as a success. Speaking to a group of Indian intellectuals and editors at Hotel Oberoi in New Delhi, where he has been staying, PM Nepal said the visit has been fruitful in further consolidating the existing ties between Nepal and India.

Responding to a query on the future of the peace process, PM Nepal said the current government was committed to bring the peace process to a conclusion and expressed hope that he would be able to bring the Maoists into confidence.

"It [peace process] is facing some difficulties due to some hurdles. But we will be able to find some of understanding with the Maoists so that the peace process could move forward," he said, adding that the army integration would begin soon.

Asked if he saw the possibility of ex-King Gyanendra coming to power because of the growing bickering among the political parties, he said there was no possibility of the revival of monarchy in Nepal.

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He said Gyanendra was free to open a political party if he wanted to enter politics. Prime Minister Nepal met a host of Indian leaders on Thursday, the third day of his India trip.

He is to visit Mumbai, India's commercial hub, to take stock of operation of the stock market there, which is South Asia's largest.

Source: www.nepalnews.com


PM taking India into confidence

Ajaya Bhadra Khanal

NEW DELHI: Prime Minister Madhav Kumar Nepal has been trying to restore mutual trust and gain India’s confidence in his ability to deliver peace and stability in the country.

With the Nepal-India relations hitting turbulence during the Maoist-led government’s rule, rebuilding trust with India has become a significant agenda. Given the reaction of the Indian side, the PM’s efforts appear to be paying off. During the one-hour one-on-one meeting with the PM last evening, his Indian counterpart Dr Manmohan Singh said he fully supported Nepal’s government, said a highly placed source.

This morning, the Indian Finance Minister Pranab Mukherjee announced an aid package of IRs 2,000 crore for Nepal.

Similarly, representatives from the Indian media, who attended the breakfast meeting, thought that the PM was very upfront about his legitimacy in parliament (the Maoists don’t have a majority support in the House), and put the onus back on the Maoists to prove their commitment to democracy and peace process.

The PM said that the integration and rehabilitation of former Maoist combatants is the most difficult issue in parliament. He said that the peace process was facing challenges and some sort of understanding with the Maoists were necessary. “We want to have an open and transparent policy towards India,” the PM later told a group of Nepali journalists, adding, “Nepal understands India’s security concerns. Similarly, India should also understand our sensitivities.”

The PM is concerned about the possible politicisation of his visit if no agreement is signed with India. “Our opponents will try to portray it as a sign that India doesn’t support the government. While, nationalists will hail it as their success in preventing us from compromising national interests,” said a source close to the PM.

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With differences lingering on some major issues, it would be difficult for diplomats to thrash out the last remaining hurdles to the agreements as far trade and transit is concerned.

However, India’s support could be crucial in dealing with the issue of integration and rehabilitation of former Maoist combatants and the PM is learnt to have raised this with the Indian leaders. The PM said that integration and rehabilitation issue needed to be discussed in the special committee. “Broadly, a large number of Maoist fighters needs to be integrated in the Nepali society and a small number in security sector like paramilitary forces,” he said.

India’s own policy on integration is very clear. “The army is a professional institution and it should not accept ideologically indoctrinated people other than through the regular process,” Professor Mahendra P Lama, Vice Chancellor, Sikkim University, and a member of the National Security Advisory Board told The Himalayan Times. A senior Foreign Ministry official involved in the talks said that India was interested in signing the Extradition Treaty with Nepal, the last draft of which was prepared at the joint-secretary level in 2005. The current Extradition Treaty was signed in 1953. India was also keen on signing the agreement on mutual legal assistance on criminal matters— an issue that figured prominently in the SAARC Summit Declaration in Colombo last year.

Source: www.thehimalyantimes.com

Date: 2009-08-21

India commits Rs 32b aid Agrees to sign Trade Treaty

The government of India has committed about Rs 32 billion aid for various development projects and has also agreed to sign the Trade Treaty, much to the relief of the Nepali side.

Indian Finance Minister Pranab Mukherjee met Prime Minister Madhav Kumar Nepal this morning, a day after the bilateral negotiations at the prime ministerial level, and informed him about India´s development assistance. The committed money will be spent mostly on the development projects India had earlier agreed to finance. Of the Rs 32 billion, about Rs 11 billion will be spent on the construction of the Tarai Road, more popularly known as hulaki sadak (postal highway). Another Rs 11 billion will go to financing development of railroads and integrated customs checkpoints to facilitate transport and transit of goods between the two countries.

Likewise, India has also committed another Rs 4.8 billion to establish Police Academy. The rest of the fund will go to other relatively modest projects, details of which will be announced in the joint communiqué that is likely to be issued Friday or Saturday. If it is decided that the joint communiqué will be signed at the prime ministerial level,

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the communiqué is likely to come only on Saturday since Prime Minister Nepal is traveling to Mumbai on Friday to address the business community.

Trade Treaty to be signed

After hectic negotiations and a lot of confusions, the two sides have finally agreed to sign the Trade Treaty by removing the controversial clause on re-export of third-country goods between the two countries.

Earlier India had demanded that it be given the right to ex-port third-county goods to Nepal while denying the latter the same privilege. Nepal has opposed the demand arguing that it was an unequal demand and failed to uphold the principle of reciprocity. "Finally, the two sides agreed to remove the controversial clause altogether after Prime Minister Nepal intervened and persuaded the Indian leaders to sign the treaty," said Prime Minister´s Foreign Advisor, Rajan Bhattarai.

Nepal government had already decided not to sign treaties on investment protection and avoidance of double taxation "since it needed more time for preparation".

Technical teams to visit Nepal in 15 days

India has also agreed to send two technical teams to Kathmandu in the next 15 days to study Nepal´s request to take up Bagmati Civilization Project and to explore possibilities to start construction of 400kva Mujaffarpur-Dhalkebar transmission line on the Indian side.

Though India has not fully committed to take up the Bagmati Civilization Project it has assured to take the final decision after the technical team conducts a feasibility study and estimates the cost of the project.

"On the power front, we have done substantive negotiations with India and we are hopeful that there will be a lot of progress once the technical team concludes its study in Nepal," said Minister for Energy, Dr Prakash Sharan Mahat. The two sides have discussed a range of issues, including construction of Naumure Project and importing power from India to ease power shortage during winter seasons, which was up to 18 hours a day.

Prime Minister encouraged by the visit

Prime Minister Nepal seems to be satisfied by the outcomes of his visit. Besides the development aid and signing of the trade treaty, Prime Minister Nepal has put a high value on the support extended by India to his coalition government. During his one-on-one with the prime minister of India, Manmohan Singh, which lasted unusually long (for more than an hour), the latter is learnt to have assured India´s full support to Prime Minster Nepal and his government. "During the private conservation, the Indian prime minister mentioned for five times that his government fully supports the current coalition in Nepal and expressed hope that under the leadership of the current Prime Minster, Nepal will be able to conclude the peace process, write a constitution, and hold next general election," said Bhattarai.

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During all meetings, Indian top leaders seem to have unanimously expressed one concern: Nepal should not be allowed to be used against India.

Source: www.myrepublica.com


India to give Nepal Rs.20 bn for infrastructure projects

India has pledged assistance of Rs.20 billion to Nepal for infrastructure projects, Finance Minister Pranab Mukherjee told visiting Nepali Prime Minister Madhav Kumar Nepal.

The Nepali prime minister arrived Monday on a five-day visit to India - his first to the country since assuming office three months ago. He met Prime Minister Manmohan Singh Tuesday and held detailed discussions with him.

Thursday morning, Finance Minister Mukherjee called on Nepal at his suite in Delhi's Oberoi Hotel.

According to officials, Mukherjee told him that a package of Rs.20 billion worth of financial assistance will be announced to mark the Nepali premier's visit.

This assistance will basically be a new fund allocation for existing rail and road projects which were stalled. This will also cover beefing up of border infrastructure, including constructing integrated border check-posts.

Commerce and Industry Minister Anand Sharma met his Nepalese counterpart Rajendra Mahato here Wednesday to take forward the proposed Treaty of Trade and Agreement of Cooperation.

Nepal also made a strong pitch for a revised trade treaty and stressed that attracting Indian investment in key areas like roads, infrastructure, energy, education and health topped priority of his government.

'We are promoting an investment-friendly environment and a liberal trade policy,' Nepal told Indian business leaders at a function Tuesday.

India is a major investor in Nepal, with over 400 projects and accounting for about 44 percent of Nepal's foreign investment.

Bilateral trade has jumped from $209.5 million in 1995-96 to over $2 billion this year.

Source; http://sify.com/news

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Fake notes, terrorism: India’s concerns

NEW DELHI, Aug 20 - Prime Minister Madhav Kumar Nepal has said one of the major concerns India has with Nepal is the flow of fake Indian currency to India through Nepal. The other two concerns are Nepal being used for terrorist activities directed at India and the use of madrasas for anti-India activities.

According to estimates, four out of every thousand Indian Rs. 1,000 denomination notes are fake and Nepal is a major conduit for them.

Nepal also said the most difficult aspect of the peace process will be the integration of Maoist combatants who remain cantoned in the UN-monitored camps. He however avoided offering any details on integration, choosing once again to stress that he would stick to the Comprehensive Peace Agreement.

On early Thursday, the visiting prime minister met a select group of journalists, academics and other stakeholders over breakfast, where he took questions, his only such session in the visit.

He tried to assure the Indian audience that Nepal would not “play any card.” The remark was obviously aimed at dispelling fears expressed in some Indian quarters that his predecessor Maoist Chairman Pushpa Kamal Dahal had cozied up to Beijing during his tenure. “There is no need to have any misunderstanding that Nepal will play any card. Nepal understands the security concerns of India.”

Playing down possible political fallout at home of the inconclusive talks between the two sides on Wednesday, Nepal said the purpose of the India visit should not be seen only in the light of whether he was able to bag any project. The prime minister and his aides have maintained that the five-day visit is a goodwill one, aimed at deepening Nepal-India ties at the highest levels. The prime minister leaves for Mumbai on Friday morning and returns to Kathmandu on Saturday.

Responding to a question on the possible revival of monarchy in Nepal, the prime minister categorically dismissed the scenario. “No one should even dream for a day that monarchy will make a comeback. Nepali people have made up their mind. If the former king wants to be a responsible, democratic citizen, he is welcome.” As a civilian, Gyanendra is free to compete and win elections, “like the king of Bulgaria,” added the prime minister.

Source: www.kantipuronline.com


Prachanda attacks present govt

BIRATNAGAR: Former prime minister and chairman of UPCN-Maoist Puspha Kamal Dahal claimed that the government led by Prime Minister Madhav Kumar Nepal had failed as it could not ink any trade treaties with India.

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Speaking with reporters at the Biratnagar Airport on Thursday Dahal said that the present government would topple in no time and a new government would be formed with national consensus. He reiterated that the new government should be formed under his leadership. He further said that the refusal of Foreign Minister Sujata Koirala to accompany the PM on his India trip was not a good sign and it was an indication of the present government’s failure.


Date: 2009-08-20

Nepal FM's Diarrhoea Drama Draws Criticisms from UML

A day after the Nepali Congress Central Committee meeting formally deplored Foreign Minister Sujata Koirala’s misadventure not to become a part of the PM’s New Delhi entourage, the United Marxist Leninists -party leading the government, too has demanded formal explanations from Sujata for the last minute cancellation of her trip to India.

The UML CA members speaking at the party Constituent Assembly Delegation meeting in Singh Durbar maintained that Sujata’s misadventure has not only ignored diplomatic ties between Nepal and India but also insulted the Nation and the Prime Minister.

“The Nepali Congress party should clarify its position over the issue”, some UML CA members demanded.

“It was sheer stupidity of Sujata to cancel the visit at the last moment”, said Bhim Acharya, the UML chief whip talking to reporters.

“This is the Koirala family anarchy, we will see how the NC proceeds in this matter”, said Rabindra Adhikari, UML CA member.

The UML chairman and the leader of the UML CA delegation Mr. Jhala Nath Khanal however, remained tight lipped over the issue.

Foreign Minister Sujata Koirala had claimed that she was suffering from diarrhoea and headache and thus the cancellation of India trip.

Source: http://www.telegraphnepal.com

Dahal hopeful of unity govt soon

Shekhar Regmi/Ratna Acharya

BIRATNAGAR/DHARA: Unified CPN-Maoist chairman Pushpa Kamal Dahal ‘Prachanda’ today said discussions were already initiated for the formation of a new government under the leadership of his party. Talking to mediapersons in Biratnagar, Dahal said he would soon discuss the issue of forming a national unity government

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under the leadership of UCPN-M with NC president Girija Prasad Koirala. Even though Dahal didn’t elaborate on the discussions held within the UCPN-M, he said that the government led by his party would soon be formed.

“Formation of a Maoist-led government is a must to take the peace process to a logical conclusion and draft the constitution,” he said, adding that it would be very difficult to draft the new constitution according to the performance of the present government. He also said the last minute decision of Foreign Minister Sujata Koirala to cancel her Inda visit accompanying PM Nepal showed the dissatisfaction of the NC towards the UML-led government. The inability to revise the Trade and Transit Treaty with India is yet another sign of the failure of the government, he said.

While, addressing a press conference organised by the Sunsari chapter of Revolutionary Journalists’ Association in Dharan, chairman Dahal claimed that the formation of the Maoist-led government would soon be a reality. “The government led by Madhav Kumar Nepal could not revise the Nepal-India Trade and Transit Treaty as it is the government of losers,” he claimed. “We will establish people’s supremacy by solving the issue related to the unconstitutional move of the president through the parliament,” Dahal said.

He reiterated that the decision of Foreign Minister Sujata Koirala not to accompany the PM in his visit to India had disgraced the nation and showed the weakness of the government. He said that the Maoist movement would continue until the unconstitutional move of the President was corrected. He also opined that a provision of dual citizenship should be introduced to the ex-Gurkhas who have got residential visa from Britain.

Dahal arrived in Dharan today to attend the training programme organised by the Kochila Rajya Samiti.


Date: 2009-08-20

Specialised hearing panels at SC

KATHMANDU: In a bid to introduce specalised hearing of cases, Chief Justice (CJ) Min Bahadur Rayamajhi today set up three panels’ of justices in the Supreme Court. The CJ introduced three separate panels - for writ and commercial issues, criminal cases and civil cases — that will look into specific cases from Sunday. This novel initiative is the maiden one in the apex court’s six-decade-long history.

“This procedure will ensure that the justice concerned will hear and decide a case from the beginning to the end,” said Hemanta Rawal, assistant spokesperson, SC. Earlier, the CJ would assign cases at random. Chances were rife that justices would be changed at the time of the verdict. The concept behind this practice was that litigants might try to influence the justice to get the judgment in his/her favour. Justice Anup Raj Sharma will lead the panel, which would look into writ and Commercial issues. Justices Prem Sharma and Bharat Raj Upreti are the other members of this panel.

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Justice Ram Prasad Shrestha will coordinate the panel that will hear and decide criminal cases. Justices Tahir Ali Ansari and Mohan Prakash Sitaula will be a part of this body. Justice Khil Raj Regmi will head the panel that will look into civil cases. He will be assisted by Justices Gauri Dhakal, Rajendra Prasad Koirala, Rana Bahadur Bam and Prakash Wosti. “The CJ had promised to introduce scientific system for hearing. This will help speedy dispensation of justice,” added Rawal. SC amended Supreme Court Regulation 1992, two months ago to introduce specialised hearing of cases.


Date: 2009-08-21

CA panel’s roadmap for civil service

The Committee to Determine the Forms of the Governance under the Constituent Assembly (CA) has finalised its concept on the formation and functioning of government service, prioritizing the representation of backward groups in the state organ.

“We have agreed to increase the quota for backward groups in the civil service,” said a CA member, Krishna Prasad Sapkota, after Thursday’s committee meeting. He added that quota will be allocated on the basis of United Nations Human Development Index rankings. This provision will figure in the constitution as a guiding principle. Once the constitution is drafted, Sapkota said, an Act will be drafted for the quota allocation.

Earlier, the committee failed to forge a consensus on the issue after the UCPN (Maoist) demanded special privileges for women, Dalits and Muslims in the civil service, while Nepali Congress and CPN-UML stood for proportional representation based on the population of groups and communities.

The panel has agreed to rename the civil service as Public Service and put employees of the civil service, judiciary, corporations, Nepal Army, Armed Police Force and the Nepal Police under it. It has agreed to introduce separate regulations to govern these institutions.

Public Service Centres will be set up in the central, federal and local levels, but Public Service Commission’s will be established only in the centre and federal units. The local public service centre will determine the number of employees needed and the Public Service Commission at the federal level will recruit the staff.

The committee has proposed the establishment of a commission to recommend the modality for the management of current government employees and their relocation at federal and local units.

CA members have agreed to include the provision of transparency, accountability and public participation in decision-making as a guiding principle for good governance.

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The concept has it that the constitution will have provisions to keep public service free from political intervention.



UP CM seeks cooperation of Nepal PM to curb cross border crime

New Delhi, Aug 20 Uttar Pradesh Chief Minister Mayawati today sought cooperation of Nepal Prime Minister Madhav Kumar Nepal for curbing cross border smuggling of drugs, fake currency and illegal arms along the open Indo-Nepal border touching the state.

Mayawati, who called upon the Nepal PM this evening, suggested that activities of anti-social elements and terrorists should be checked and countered along the 550 km long open border between India and Nepal

The UP CM also suggested joint cooperation between UP and Nepal Police to curb illegal activities.

The Nepalese PM told Mayawati that he was thinking to implement a new Constitutional system in Nepal, and women belonging to backward communities and Madhesis had been given proper representation in the Constituent Assembly.

Mayawati while discussing various flood control projects said that these had been confined to paper only since many years, and both the countries should begin work on these projects jointly to ensure their quick completion. This, she said, would save people living in Terai region from constant floods.

Both the leaders agreed on joint development of Buddhist Tourist Circuit, which would promote tourism in UP and Nepal.

http://www.samaylive.com/news

Peoples’ Republic & State Capture, our agenda: Nepal Maoist Chief

The Chairman of the Unified Communist Party of Nepal- Maoist Pushpa Kamal Dahal alias Prachanda has made it clear that the main agenda of the party of the ex-rebels was to establish a Peoples’ Republican Order and the State Capture.

“Our priorities set at time of the revolt remains still intact, we have not retracted from our earlier objectives”, declared Prachanda.

Mr. Dahal was addressing a Maoists’ Party gathering in Dharan, Sunsari District, Thursday August 20, 2009.

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“Peoples’ Liberation Army is the major force of the Maoists’ Party, the Party cadres should play significant role to further strength this indomitable force”, he declared.

“Our final objectives are to establish the peoples’ republican order and to capture the state”, he said adding, “I urge you all to keep these objectives in your mind and bring about a hurricane through the ongoing peoples’ uprising.”

“The major challenge before us to reach the objectives as mentioned are to defeat a faction of the UML (Oli) and the Nepali Congress”, he categorically said.

“Very soon we will grab power”, he said adding “There is no alternative to the Maoists’ led government in Nepal.”

The Maoists party vice president Dr. Babu Ram Bhattarai, Senior vice chairman Mohan Baidya Kiran, General Secretary Ram Bahadur Thapa alias Badal and Secretary C. P. Gajurel were also present at the program.

Source; http://telegraphnepal.com

POLICY:

Govt preparing to import more electricity from India

State Minister for Energy Chandra Singh Bhattarai has said that preparations to import 50 MW of electricity from India is in final phase.

Talking briefly to national news agency RSS on his way to Kathmandu Thursday, he said that the government is sensitive to end energy crisis.

We have been looking for every possible ways to develop energy, he said.

"But ending the current energy crisis immediately is impossible for now."

While mentioning that the thermal plant producing electricity in Hetauda and Biratnagar is being repaired, he said that utilizing internal resources is a sustainable approach to end energy crisis.

Source: www.nepalnews.com


Panel approves envoys

Parliamentary Public Hearing Committee of the legislature-parliament approved Dr Shankar Sharma and Rukma Shumsher Rana’s appointment as envoys to the United States and India, respectively, on Thursday. Earlier, a Cabinet meeting had decided to appoint the duo. Both Sharma and Rana were appointed as per the quota allocated to the Nepali Congress. The posts had fallen vacant when the UCPN-Maoist-led

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government had called back the envoys to the US and India, Dr Suresh Chalise and Durgesh Man Singh, respectively, before their tenure could expire. The panel approved their names unanimously as there were no complaints filed against them.


Date: 2009-08-21

SLC graduate becomes NEA engineer

Just as an English teacher shouldn’t be manning operating theatres or a bus driver piloting an airplane, a non-engineer shouldn’t be managing the country’s electricity grid. But try telling that to Nepal Electricity Authority (NEA)

The state-owned monopoly, holding charge of the country’s entire electricity production and supply system, Nepal Electricity Authority (NEA), believes that an SLC makes one eligible for promotion to the post of mechanical engineer, equivalent to a sixth-level government officer.

In its latest investigation, the Commission for the Investigation of Abuse of Authority (CIAA) has revealed that there are several officers at NEA, who have just the School Leaving Certificate (SLC) degree but are engineers.

One of the sixth-level engineers, the CIAA investigation reveals, happens to have passed an SLC equivalent exam in Sanskrit from a school in Bihar state of India. He was recently promoted to the post in accordance with the law.

“The case of the engineer with SLC level degree in Sanskrit is just one example, there are several such cases at NEA,” said a CIAA official.

CIAA, in its directive issued on Thursday, has concluded that the reason behind these anomalies is nothing but NEA Staff Regulations 2005, which was amended on April 12, 2009.

The amendment makes eligible any fifth-level NEA staffer to apply for promotion for the post of sixth-level officer if s/he has an SLC or an equivalent degree.

The law was active till Thursday when CIAA invalidated it through a directive that ordered NEA to amend it. CIAA held that continuation of such flawed Regulations would severely impact on the institution’s performance.

NEA concedes the flaw. “Given the present regulations, it is possible there are cases like the one revealed by the CIAA investigation,” said NEA Spokesperson Danda Pani Bashyal.

“We will discuss with the concerned officials on implementing the CIAA directive.”



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BANKING:

RBB unable to sell its shares in NIBL

Prithvi Man Shrestha

KATHMANDU, Aug 20 - Rastriya Banijya Bank (RBB) has not been able to sell its promoters' shares of Nepal Investment Bank as per Nepal Rastra Bank's (NRB) direction as the Security Board of Nepal (SEBON) was not satisfied with the minimum price quoted by the bank.

The RBB has quoted Rs. 1068 per share which SEBON rejected saying that it was unjustifiable. "Although SEBON asked RBB to review the quoted price twice, the bank refused to review the price without any justification," said a SEBON official.

SEBON chairman Surbir Poudel said that his office would not permit RBB to sell the promoters share at the quoted price at any cost until its justification was presented to SEBON.

"It seems that the RBB management wants to continue holding the NIB shares as they are," he charged. "And it wants to point the finger at SEBON for failing to sell its shares."

RBB had applied to SEBON to permit the bank to sell its 2.30 million units of promoter shares remaining in Nepal Investment Bank Limited (NIBL) at a premium price (higher than the book value of Rs. 100 per share).

As per the existing rules, a company making a profit for three consecutive years can sell its promoter shares at a premium price.

However, RBB chief executive officer Janardan Acharya said that the quoted price was justifiable on the grounds that it was fixed after thorough consultation with experts.

"If we reduce the price by just one rupee, we will have to lose Rs. 2.3 million," he said. "We are ready to reduce the price if our first attempt fails to lure buyers," he said.

RBB treasury department Chief Keshav Lamsal said that the SEBON failed to justify its rejection although the RBB had presented the clear basis of quoted price when it first approached to SEBON.

According to him, the quoted price was an average price produced after calculating various factors including the book value ratio, sales multiple method, demand growth model, earning before depreciation and tax and average per share price of NIB shares for 180 days and 90 days twice among others.

"SEBON should have told us which standard they were unsatisfied with," Lamsal said.

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RBB had first approached SEBON on April 13, 2009 with a sales proposal. SEBON wrote to RBB asking it to improve its sales proposal along with the quoted price on May 19. On June 8, RBB replied saying that the board decided to quote the above price on the basis of calculating 180 days of NIBL share price, according to SEBON. It also claimed the same on June 18. On June 25, SEBON wrote to RBB to adjust its quoted price but RBB in its reply on July 20 didn't mention anything about the price by just making some improvement in the sales proposal, according to SEBON. Then, SEBON is mum over the issue.

Given the failure of RBB to sell those shares, it has to make cent percent provision in NRB as per the NRB direction. NRB had told financial institutions to sell their cross holdings by July 9 at any cost. The RBB has already asked the central bank to extend the period of selling its cross holding by October 17.

RBB has 3.70 million units of promoters' share of NIBL. "It wants to sell the remaining shares after converting them into public shares," said Acharya. He said that it delayed to sell the remaining shares as the conversion of promoter shares into public one should be endorsed by the annual general meeting of NIBL.



NRB likely to blacklist Indonesian note printer

Nepal Rastra Bank (NRB) is planning to blacklist Indonesian note printing company Perum Peruri, citing a serious lacking on the part of the security printing company. The NRB made the move after it found that some units of unauthorized Rs 1,000 notes had sneaked into the market.

The central bank´s board meeting on Thursday also reassigned the probe team, which was formed last week to investigate on the case, to conduct an in-depth investigation on how the notes supposed to be destroyed by the company found their way into the market. The team will soon visit the company to verify the stock and investigate the process of destroying the notes that are not endorsed by the central bank. The main task of the team is to verify whether the number of notes that sneaked into the market crossed over its estimation put at 1,008 units.

“This is a serious lapse of the company and the central bank is likely to postpone a new printing order. A decision to this connection will be taken in a few weeks,” said a source, adding that the decision to this effect is most likely to be taken in the upcoming board meeting planned for Sunday. And if the central bank decides to blacklist the company, it will never be allowed to bid for NRB´s note printing tenders.

The saga of circulation of unauthorized notes had surfaced two weeks ago when NRB found some notes from the market. The unauthorized notes bear the signature of present Governor Bijaya Nath Bhattarai, but those were printed before his suspension from the post in June 2007 on corruption charges.

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Perum Peruri then had sent at least six sets of samples for final approval. But before the notes were delivered, Bhattarai was suspended from the post. The government later authorized the central bank to issue notes carrying signature of then acting governor Krishna Bahadur Manadhar in order to avoid scarcity of notes.

Since the notes were never approved for distribution, Perum Peruri was required to destroy them and deliver the alternative notes signed by Manandhar. But NRB recovered a 1000-rupee note with prefix of 55 and having Bhattarai´s signature instead of Manandhar´s from the market.

NRB had formed a high-level team led by Bhola Man Shrestha, executive director of the NRB, to probe into the case, as it termed the issue ´highly sensitive´ even though the volume of unauthorized notes is not huge.



Global, NT sign agreement

Global Bank Limited and Nepal Telecom have reached an agreement which enables consumers to pay the telephone and mobile bills through the bank’s internet banking facility or from any of its branches.

An agreement was signed by Anil Gyawali, CEO of Global Bank Limited and Amar Nath Singh, managing director of the Nepal Telecom on Wednesday.

After the agreement, consumers will be able to pay post paid mobile bills through the SMS as well. The bank is the first to introduce a facility that allows the customers to pay the bill through SMS.



BUSINESS & ECONOMY:

Maoists want end to monopoly in media

Maoists have warned they would struggle to end the "monopoly of state and some big households in the media” and enhance the access of commoners to this sector.

The Maoists made public their media policy through the manifesto of the Joint Mass Movement Nepal (JMMN), which is a Maoist front formed to launch an agitation in the streets and in the parliament for "civilian supremacy" and a Maoist-led national unity government.

The manifesto, made public on Thursday, also states that foreign investment in media sector should be ended, and the rights of the professional journalists protected. The

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JMMN, led by Maoist vice president Dr Baburam Bhattarai, had formed a 144-member central committee on Wednesday.

The state should be restructured on the basis of right to self determination of the oppressed ethnic groups and regions, the manifesto states. It has also demanded that the government legitimize the "institutionalized decisions" taken by Maoist-run parallel government during the insurgency.

The manifesto states that the JMMN would drive the country towards socialism and communism. The JMMN will attempt to develop a political system to institutionalize multi-party political competitiveness and ensure revolutionary proletariat leadership under a socialist system.

Putting forward a 45-point charter of demand, the manifesto also demands that all security agencies be restructured and the Nepal Army personnel and Maoist combatants be deployed for development works prior to their integration.

According to the manifesto, the local bodies should be formed on the basis of votes the political parties had garnered during the Constituent Assembly elections. Besides, the party has also demanded an effective regulation of the growing network of NGOs and INGOs in the country.



Govt appoints four labor attaches

Ministry of Labor and Transport Management (MoLTM) has appointed four labor attaches in key labor destinations, eight months after the cabinet took a decision to this effect.

According to Mohan Krishna Sapkota, director general of the Department of Foreign Employment (DoFE), under secretaries Surya Bhandari and Binod Khanal have been appointed as labor attaches for Malaysia and Saudi Arabia respectively. Similarly, section officers Dhruba Koirala and Parbati Aryal have been deputed to Qatar and United Arab Emirates respectively. They have been appointed for a two-year period.

The government had decided to appoint labor attaches to four labor destinations in the first phase, as per the Foreign Employment Act, which envisages the appointment of labor attaches to countries where number of Nepali workers is more than 5,000, to deal with labor related issues.

These four destinations are home to a significant chunk of Nepali migrant workers and account to almost 90 percent of the total departures of Nepali overseas workers.



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Taxi syndicate system still being practiced

Though the government had declared more than a month ago in the budget announcement that the transport syndicate system would be ended, taxi operators at Pokhara airport are still practicing it and overcharging passengers.

According to an official of the Pokhara Tourism Council, most of the taxicabs at the airport are more than 20 years old. As only a few are allowed to enter the airport premises, they are able to set arbitrary fares. The taxies have been charging more than Rs. 200 for a trip that should normally cost Rs. 40. Tourism entrepreneurs have been demanding that new taxicabs fitted with taximeters be operated at the airport and that their tariff be displayed in a visible place.

Narendra Bahadur Thapa, chief of the Pokhara Civil Aviation Office, said that he had urged the Taxi Entrepreneurs Committee (TEC) not to overcharge travellers.

"We have ordered them to fix the fares and post the price list on the vehicle in a place that can be easily seen," said Thapa. "We are working to reform the system after receiving complaints from passengers."

Pashupati Sharma, president of the Nepal Tours and Travels Association, said that TEC was a member of the Pokhara Tourism Council, and that was how the issue came to light. He said that the problem had arisen as the decision to scrap the syndicate system was not implemented.

However, TEC president Gandhi Raj Giri claimed that 75 percent of the old taxicabs at the airport had been replaced. He said that the fare was comparatively high.



JCF staffs launch protest

JANAKPUR, Aug 21: Retired workers of Janakpur Cigarette Factory (JCF) have launched a protest against the JCF management, demanding immediate release of their salary and gratuity amounts. They have also warned to organize a series of protests if their demands are not addressed by Sunday.

The government had discharged 240 workers from their duties to ease the mounting financial burden on the state-owned company on July 10. The management had decided to give marching orders to the employees, without giving prior information, a week ahead of their scheduled retirement date.

As per the company´s bylaw, staff members who have served the company for 30 years have to retire from the company by default. But according to the agitating staff, it is a common practice for the management to inform them about their retirement date a month ahead of their actual retirement date.

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"The government, first of all, disappointed us by discharging us without giving prior information. On top of that, it has not released our payment," one of the protesting staff said.

The employees claim the government owes each of the retired staff from Rs 500,000 to Rs 1.7 million in salary and gratuity amounts.

"The government will need around Rs 240 million if it wants to clear the unpaid due amount," according to Anurag Giri, one of the senior officials of the cigarette factory. Meanwhile, another 41 staff, who are retiring on Thursday, are also planning to join the protest led by 240 retired staff.

Established in January 1965, Janakpur Cigarette Factory is the largest cigarette manufacturing company in Tarai. The company, which was making profit till 12 years back, had started incurring losses due to unnecessary political intervention, problem of overstaffing and inefficient use of various resources.

At present, the situation in the company has transformed from bad to worse and it is on the verge of closure due to lack of tobacco.

"The factory owes some Rs 40 million to a foreign tobacco supplier, whereas the existing stock of tobacco is enough just for a week. If the management cannot release the payment in time and replenish the tobacco stock, there is no alternative to closing it," Giri said.



GENERAL:

Two more swine flu cases in Nepal; total reaches 22

Kathmandu, Aug 20 (PTI) With two more persons testing positive for swine flu in Nepal, the total number of infected people has reached 22 in the country, the health ministry has said.

Two male citizens, who flew in from China and Malaysia were diagnosed with th

A(H1N1) influenza virus yesterday, ministry sources said.

Health Ministry official Dr Jitendra Man Shrestha, however, said that there is no need for panic as no local people have so far been infected with the flu.

The government has arranged flu testing facilities at the Tribhuvan International Airport here in the Nepalese capital and issued an alert at major check points

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connecting the country with India and China as preliminary preventive measures to control spread of the flu.

There has been no swine flu related death in the country so far.

Source: www.ptinews.com/news

Swindler arrested

The police have arrested a fake doctor for his involvement in number of crime charges, including abduction and murder. The arrested, according to the police, has been identified as Prabin Pradhananga of Bhimsensthan, who was swindling people and even kidnapping some for huge ransoms since the last 10 years.

The police arrested him after receiving complaints from Bijayakant Pratap Sharma, a victim. The police said Pradhananga had kidnapped Sharma, robbed him of his belongings and let him go after demanding Rs. 100,000 for his security. Sharma contacted the Police as he could not pay the demanded sum.

The police said Pradhananga was the same man who had spent nearly four years behind bars in connection with the murder of Kumar Lama and was subsequently released on bail. A preliminary investigation of the Police suggests that he has swindled at least 40 people in the last 10 years.

Meanwhile, the police have also arrested 16 dancers and six dance restaurant owners on Wednesday night charging them with showing nude and vulgar dances. The police said they would intensify action against owners of dance restaurants as their earlier campaign to reduce crime in the bars had failed to have visible impact.



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