Indian JV loses millions in Nepal dry dock pact
IANS, 17-Oct-07
After entering into a pact to operate Nepal's biggest dry dock, Container Corp of India's (CCI) joint venture in the country has lost millions due to insecurity, political instability and the insurmountable red tape between Kathmandu and New Delhi.
Himalayan Terminals Pvt Ltd, CCI's joint venture in Nepal, has lost Nepali Rs.70-80 million in the three years since it won the contract to operate Nepal's biggest inland clearance depot in frontier town Birgunj.
'According to the contract, we were to pay the Nepal government Rs.956 million in 10 years,' Himalayan Terminals officials told IANS.
'The revenue was calculated on the estimated volume of traffic, which, according to data, should have been about 20,000 wagons. However, last year alone, there were only about 14,000 wagons.'
According to Himalayan Terminals, political turmoil in Nepal and frequent closures called in south Nepal by various groups badly affected flow of goods.
In addition, delay in customs clearance is also hurting business.
At present, the dry dock sees only the flow of closed containers from Kolkata in India. However, open wagons, such as coal rakes and those carrying steel goods, form a substantial part of container traffic elsewhere.
But since India does not allow open wagons into Nepal, business for the dry dock has been badly hit.
Although the Indian JV started working three years ago, India and Nepal have not yet been able to revise their Rail Services Agreement that would allow the entry of open wagons, despite the fall of King Gyanendra's regime and the coming to power of a 'friendly', multi-party government almost two years ago.
Plagued by the severe loss, Himalayan Terminals asked Nepal's commerce, industry and supplies ministry to revise the terms of the contract, pointing out that otherwise it might have to pull out of the agreement.
Though the Nepal Intermodal Transport Development Board agreed a month ago that the JV's complaint was just and reworked the terms of the contract, they have to be approved by the ministry as well as the cabinet.
The key commerce, industry and supplies ministry has been headless for nearly a month with the minister Rajendra Mahato having quit in a huff over a dispute in his Nepal Sadbhavana Party.
However, instead of appointing a new minister, Prime Minister Girija Prasad Koirala has allocated the portfolio to Home Minister Krishna Prasad Sitaula, who has been facing charges of incompetence from the parties and public for over a year now.
With all government offices closing for 10 days from Thursday on the occasion of Dashain, Nepal's biggest Hindu festival, it is unlikely that the troubled JV's problems will be addressed soon.
Wednesday, October 17, 2007
Cosmic Air resumes flight
Cosmic Air resumes flight
ArthaExpres, 16-Oct-07
Cosmic Air, which had suspended all its domestic and international flights almost a year ago, is now resuming its flights from October 17.
As per the schedule published by the Cosmic, there will be 14 flights per week to Delhi from Kathmandu. Similarly, another 14 flights in a week are scheduled to fly to Biratnagar and Nepalgunj — one flight each per day to these two destinations. The resumption of service has come when the aviation sector is facing a rush of passengers, especially on Delhi-Kathmandu sector. Its one-way airfare to Delhi is Rs 8,000. “We will try to provide an upgraded service to passengers,” Madhavi Shrestha, vice-chairperson of Cosmic Air, said.
ArthaExpres, 16-Oct-07
Cosmic Air, which had suspended all its domestic and international flights almost a year ago, is now resuming its flights from October 17.
As per the schedule published by the Cosmic, there will be 14 flights per week to Delhi from Kathmandu. Similarly, another 14 flights in a week are scheduled to fly to Biratnagar and Nepalgunj — one flight each per day to these two destinations. The resumption of service has come when the aviation sector is facing a rush of passengers, especially on Delhi-Kathmandu sector. Its one-way airfare to Delhi is Rs 8,000. “We will try to provide an upgraded service to passengers,” Madhavi Shrestha, vice-chairperson of Cosmic Air, said.
NEPSE opens online share trading
NEPSE opens online share trading
eKantipur.com, 16-Oct-07
Nepal Stock Exchange (NEPSE) has granted permission to five stock brokers to conduct share trading online, paving the way for the new era of online transactions in the Nepali stock market.
Under the new arrangement, stock brokers can now place shares for selling and ordering shares for procurement using a wide area networking system, according to NEPSE.
Malla and Malla Stock Broking (Broker Number 11), Nepal Stock House (No. 14), Nepal Investment and Securities Trading (No. 19), Shree Krishna Securities (No. 28) and Premier Securities (No. 32) are the broker companies allowed to carry out online trading.
"These brokers have been included in NEPSE's wide area networking (WAN) system," says a press release from NEPSE.
It has also said that NEPSE would include the remaining 17 brokers in the wide area network to enable them to conduct online transactions within a month.
NEPSE also announced that it would convert its system from local area networking to WAN in the next six months.
For payment settlement, NEPSE is also using separate software it got from Comdaq Group of Britain.
"Use of the software will enable sellers to receive payment instantly," says the release. Transacting brokers, on the other hand, would have to submit the transaction amount within two working days.
Likewise, the broker selling the shares would have to handover the share document and ownership certificates within three days of transactions. While brokers would follow a self-audit system for the online business, they would have to secure approval of NEPSE to complete the overall deals.
eKantipur.com, 16-Oct-07
Nepal Stock Exchange (NEPSE) has granted permission to five stock brokers to conduct share trading online, paving the way for the new era of online transactions in the Nepali stock market.
Under the new arrangement, stock brokers can now place shares for selling and ordering shares for procurement using a wide area networking system, according to NEPSE.
Malla and Malla Stock Broking (Broker Number 11), Nepal Stock House (No. 14), Nepal Investment and Securities Trading (No. 19), Shree Krishna Securities (No. 28) and Premier Securities (No. 32) are the broker companies allowed to carry out online trading.
"These brokers have been included in NEPSE's wide area networking (WAN) system," says a press release from NEPSE.
It has also said that NEPSE would include the remaining 17 brokers in the wide area network to enable them to conduct online transactions within a month.
NEPSE also announced that it would convert its system from local area networking to WAN in the next six months.
For payment settlement, NEPSE is also using separate software it got from Comdaq Group of Britain.
"Use of the software will enable sellers to receive payment instantly," says the release. Transacting brokers, on the other hand, would have to submit the transaction amount within two working days.
Likewise, the broker selling the shares would have to handover the share document and ownership certificates within three days of transactions. While brokers would follow a self-audit system for the online business, they would have to secure approval of NEPSE to complete the overall deals.
Over Rs 1.5 billion poll budget gone with the wind
Over Rs 1.5 billion poll budget gone with the wind
ekantipur.com, 16-Oct-07
BY BISHNU BUDHATHOKI
The postponement of the Constituent Assembly (CA) poll has caused an over Rs 1.5 billion loss to the government.
The amount, put up by the government and received from the international community was spent for CA poll preparation.
The Election Commission (EC) said it has spent over Rs 510 million and various donor communities have used up over Rs 540 million for election related activities.
Unveiling a report on the expenditure, Chief Election Commissioner Bhoj Raj Pokharel on Tuesday said that out of Rs 1.28 billion allocated in fiscal year 2006/007 the Commission spent Rs 234 million to update the electoral rolls.
In 2007/008, the government had released Rs 287.1 million from its annual budget of Rs 1.911 billion for election purposes, and the Commission has already spent Rs 118 million.
According to Pokharel, the preliminary estimate of the total expenditure to date at the center and district level is Rs 281 million.
Similarly, Pokharel informed that various foreign countries mainly the US, UK, India, China, Japan, Denmark, Austria, Canada, Norway and Korea andincluding international donor agencies, provided technical and logistic assistance worth Rs 540 million.
"The EC has not received assistance in cash from the donor community," he said.
He also said a detailed report on international assistance provided for different social and non-government organizations to launch civic education and voter education campaigns across the country is yet to receive allocations.
Besides, the US had decided to provide US$ 2.8 million to arrange over 500 million ballot papers required for the CA polls, whereas the EC has already set up three wave machines and imported 300 tons of paper needed to print the ballot papers.
In order to carry out voters' education programs by mobilizing over 8,400 volunteer, the Ministry of Peace and Reconstruction had released Rs 121 million from its Peace Trust Fund. Similarly, the ministry had released Rs 118 million to train over 234,025 staff and volunteers needed to conduct the polls, whereas the EC has already spent in total Rs 123 million for the above mentioned purpose.
Besides, over 940,000 billboards, stickers and posters and 1,800,000 pamphlets and 3,682,270 invitation cards among other things were printed for the voter education campaign.
Similarly, the EC had allocated Rs 32.65 million for a media campaign across the country.
When asked about exact figures on wasted goods and items that can be used in future, he said, "The budget meant for institutional capacity building and several logistics items can be used, but those documents prepared for the mixed electoral polls on November 22 can perish if the government decides to adopt a different electoral system."
Meanwhile, 24 non-government organizations have already received Rs 162.11 million from different foreign donors to launch media and voter education campaign across the country.
Scores of non-government organizations, which were allowed to observe the election, have received over Rs 90 million for the purpose.
ekantipur.com, 16-Oct-07
BY BISHNU BUDHATHOKI
The postponement of the Constituent Assembly (CA) poll has caused an over Rs 1.5 billion loss to the government.
The amount, put up by the government and received from the international community was spent for CA poll preparation.
The Election Commission (EC) said it has spent over Rs 510 million and various donor communities have used up over Rs 540 million for election related activities.
Unveiling a report on the expenditure, Chief Election Commissioner Bhoj Raj Pokharel on Tuesday said that out of Rs 1.28 billion allocated in fiscal year 2006/007 the Commission spent Rs 234 million to update the electoral rolls.
In 2007/008, the government had released Rs 287.1 million from its annual budget of Rs 1.911 billion for election purposes, and the Commission has already spent Rs 118 million.
According to Pokharel, the preliminary estimate of the total expenditure to date at the center and district level is Rs 281 million.
Similarly, Pokharel informed that various foreign countries mainly the US, UK, India, China, Japan, Denmark, Austria, Canada, Norway and Korea andincluding international donor agencies, provided technical and logistic assistance worth Rs 540 million.
"The EC has not received assistance in cash from the donor community," he said.
He also said a detailed report on international assistance provided for different social and non-government organizations to launch civic education and voter education campaigns across the country is yet to receive allocations.
Besides, the US had decided to provide US$ 2.8 million to arrange over 500 million ballot papers required for the CA polls, whereas the EC has already set up three wave machines and imported 300 tons of paper needed to print the ballot papers.
In order to carry out voters' education programs by mobilizing over 8,400 volunteer, the Ministry of Peace and Reconstruction had released Rs 121 million from its Peace Trust Fund. Similarly, the ministry had released Rs 118 million to train over 234,025 staff and volunteers needed to conduct the polls, whereas the EC has already spent in total Rs 123 million for the above mentioned purpose.
Besides, over 940,000 billboards, stickers and posters and 1,800,000 pamphlets and 3,682,270 invitation cards among other things were printed for the voter education campaign.
Similarly, the EC had allocated Rs 32.65 million for a media campaign across the country.
When asked about exact figures on wasted goods and items that can be used in future, he said, "The budget meant for institutional capacity building and several logistics items can be used, but those documents prepared for the mixed electoral polls on November 22 can perish if the government decides to adopt a different electoral system."
Meanwhile, 24 non-government organizations have already received Rs 162.11 million from different foreign donors to launch media and voter education campaign across the country.
Scores of non-government organizations, which were allowed to observe the election, have received over Rs 90 million for the purpose.
Over Rs 1.5 billion poll budget gone with the wind
Over Rs 1.5 billion poll budget gone with the wind
ekantipur.com, 16-Oct-07
BY BISHNU BUDHATHOKI
The postponement of the Constituent Assembly (CA) poll has caused an over Rs 1.5 billion loss to the government.
The amount, put up by the government and received from the international community was spent for CA poll preparation.
The Election Commission (EC) said it has spent over Rs 510 million and various donor communities have used up over Rs 540 million for election related activities.
Unveiling a report on the expenditure, Chief Election Commissioner Bhoj Raj Pokharel on Tuesday said that out of Rs 1.28 billion allocated in fiscal year 2006/007 the Commission spent Rs 234 million to update the electoral rolls.
In 2007/008, the government had released Rs 287.1 million from its annual budget of Rs 1.911 billion for election purposes, and the Commission has already spent Rs 118 million.
According to Pokharel, the preliminary estimate of the total expenditure to date at the center and district level is Rs 281 million.
Similarly, Pokharel informed that various foreign countries mainly the US, UK, India, China, Japan, Denmark, Austria, Canada, Norway and Korea andincluding international donor agencies, provided technical and logistic assistance worth Rs 540 million.
"The EC has not received assistance in cash from the donor community," he said.
He also said a detailed report on international assistance provided for different social and non-government organizations to launch civic education and voter education campaigns across the country is yet to receive allocations.
Besides, the US had decided to provide US$ 2.8 million to arrange over 500 million ballot papers required for the CA polls, whereas the EC has already set up three wave machines and imported 300 tons of paper needed to print the ballot papers.
In order to carry out voters' education programs by mobilizing over 8,400 volunteer, the Ministry of Peace and Reconstruction had released Rs 121 million from its Peace Trust Fund. Similarly, the ministry had released Rs 118 million to train over 234,025 staff and volunteers needed to conduct the polls, whereas the EC has already spent in total Rs 123 million for the above mentioned purpose.
Besides, over 940,000 billboards, stickers and posters and 1,800,000 pamphlets and 3,682,270 invitation cards among other things were printed for the voter education campaign.
Similarly, the EC had allocated Rs 32.65 million for a media campaign across the country.
When asked about exact figures on wasted goods and items that can be used in future, he said, "The budget meant for institutional capacity building and several logistics items can be used, but those documents prepared for the mixed electoral polls on November 22 can perish if the government decides to adopt a different electoral system."
Meanwhile, 24 non-government organizations have already received Rs 162.11 million from different foreign donors to launch media and voter education campaign across the country.
Scores of non-government organizations, which were allowed to observe the election, have received over Rs 90 million for the purpose.
ekantipur.com, 16-Oct-07
BY BISHNU BUDHATHOKI
The postponement of the Constituent Assembly (CA) poll has caused an over Rs 1.5 billion loss to the government.
The amount, put up by the government and received from the international community was spent for CA poll preparation.
The Election Commission (EC) said it has spent over Rs 510 million and various donor communities have used up over Rs 540 million for election related activities.
Unveiling a report on the expenditure, Chief Election Commissioner Bhoj Raj Pokharel on Tuesday said that out of Rs 1.28 billion allocated in fiscal year 2006/007 the Commission spent Rs 234 million to update the electoral rolls.
In 2007/008, the government had released Rs 287.1 million from its annual budget of Rs 1.911 billion for election purposes, and the Commission has already spent Rs 118 million.
According to Pokharel, the preliminary estimate of the total expenditure to date at the center and district level is Rs 281 million.
Similarly, Pokharel informed that various foreign countries mainly the US, UK, India, China, Japan, Denmark, Austria, Canada, Norway and Korea andincluding international donor agencies, provided technical and logistic assistance worth Rs 540 million.
"The EC has not received assistance in cash from the donor community," he said.
He also said a detailed report on international assistance provided for different social and non-government organizations to launch civic education and voter education campaigns across the country is yet to receive allocations.
Besides, the US had decided to provide US$ 2.8 million to arrange over 500 million ballot papers required for the CA polls, whereas the EC has already set up three wave machines and imported 300 tons of paper needed to print the ballot papers.
In order to carry out voters' education programs by mobilizing over 8,400 volunteer, the Ministry of Peace and Reconstruction had released Rs 121 million from its Peace Trust Fund. Similarly, the ministry had released Rs 118 million to train over 234,025 staff and volunteers needed to conduct the polls, whereas the EC has already spent in total Rs 123 million for the above mentioned purpose.
Besides, over 940,000 billboards, stickers and posters and 1,800,000 pamphlets and 3,682,270 invitation cards among other things were printed for the voter education campaign.
Similarly, the EC had allocated Rs 32.65 million for a media campaign across the country.
When asked about exact figures on wasted goods and items that can be used in future, he said, "The budget meant for institutional capacity building and several logistics items can be used, but those documents prepared for the mixed electoral polls on November 22 can perish if the government decides to adopt a different electoral system."
Meanwhile, 24 non-government organizations have already received Rs 162.11 million from different foreign donors to launch media and voter education campaign across the country.
Scores of non-government organizations, which were allowed to observe the election, have received over Rs 90 million for the purpose.
Monday, October 15, 2007
Weekly share update : Nepse drops, bounces back
Weekly share update : Nepse drops, bounces back
ArthaExpress.com, 13-Oct-07
As Nepse reacted to new directives from Nepal Rastra Bank (NRB), trading at the Nepse floor has to be suspended for the first time in its history on Monday, Tuesday and Thursday, three days this week.
Trading at the Nepal Stock Exchange (Nepse) — the sole secondary market of the country — floor suspended twice on Monday due to fall in the Nepse index — first by 20 points and later by 25 points. It lost 25.46 points or 2.83 per cent to 873.92 points at the closing of trading on Monday from the opening 899.38 points.
Similarly, Nepse has been suspended twice on Tuesday due to decrease in its index. The Nepse lost 25.80 points or 2.95 per cent to 848.12 points on Tuesday.
According to new rule, the trading will be suspended for half an hour if the index goes down or up by 15 points or three per cent from previous day’s transactions within half an hour of the trading.
Similarly, the trading will be suspended for another half an hour, if the index goes down or up by 20 points or four per cent within the half an hour after the transaction begins. If the index continues to go down or up by 25 points or five per cent, within yet another half an hour of the transaction, the trading will be suspended for the whole day.
Rewat Bahadur Karki, managing director of Nepse hoped that the rule will stabilise the market. “Huge changes, either upward or downward, will affect the market,” he said adding that it is necessary for the sound growth of the secondary market.
Similarly, the trading was suspended twice on Thursday, the last day of the trading as the Nepse ‘unexpectedly’ bounced back. Nepse gained 28.41 points or 3.39 per cent to register 866.13 points on Thursday.
After the central bank’s directive to commercial banks on Sunday to curtail the margin lending to 50 per cent that is said to be one of the reasons of unnatural price hike, the market was expected to cool down, but Nepse tried to prove wrong by ‘unexpectedly rising’ on the last day.
The central bank has also tried to make sufficient flow of shares — as short-supply has been considered another reason in fuelling price hike — by easing rul-es for the promoters to sell their shares in the secondary market.
This week Nepse lost 33.25 points in its index to 866.13 in the weekly trading. The total number of transaction stands at 1617 and total units of shares traded throughout the week sta-nds at 7,40,764 for Rs 380.51 million. Out of the total transactions, transaction of companies under ‘A’ class occupies 53.10 per cent.
National Hydropower topped the list in terms of monetary value and Gurkha Development Bank topped in terms of number of transactions with 155 transactions this week.
ArthaExpress.com, 13-Oct-07
As Nepse reacted to new directives from Nepal Rastra Bank (NRB), trading at the Nepse floor has to be suspended for the first time in its history on Monday, Tuesday and Thursday, three days this week.
Trading at the Nepal Stock Exchange (Nepse) — the sole secondary market of the country — floor suspended twice on Monday due to fall in the Nepse index — first by 20 points and later by 25 points. It lost 25.46 points or 2.83 per cent to 873.92 points at the closing of trading on Monday from the opening 899.38 points.
Similarly, Nepse has been suspended twice on Tuesday due to decrease in its index. The Nepse lost 25.80 points or 2.95 per cent to 848.12 points on Tuesday.
According to new rule, the trading will be suspended for half an hour if the index goes down or up by 15 points or three per cent from previous day’s transactions within half an hour of the trading.
Similarly, the trading will be suspended for another half an hour, if the index goes down or up by 20 points or four per cent within the half an hour after the transaction begins. If the index continues to go down or up by 25 points or five per cent, within yet another half an hour of the transaction, the trading will be suspended for the whole day.
Rewat Bahadur Karki, managing director of Nepse hoped that the rule will stabilise the market. “Huge changes, either upward or downward, will affect the market,” he said adding that it is necessary for the sound growth of the secondary market.
Similarly, the trading was suspended twice on Thursday, the last day of the trading as the Nepse ‘unexpectedly’ bounced back. Nepse gained 28.41 points or 3.39 per cent to register 866.13 points on Thursday.
After the central bank’s directive to commercial banks on Sunday to curtail the margin lending to 50 per cent that is said to be one of the reasons of unnatural price hike, the market was expected to cool down, but Nepse tried to prove wrong by ‘unexpectedly rising’ on the last day.
The central bank has also tried to make sufficient flow of shares — as short-supply has been considered another reason in fuelling price hike — by easing rul-es for the promoters to sell their shares in the secondary market.
This week Nepse lost 33.25 points in its index to 866.13 in the weekly trading. The total number of transaction stands at 1617 and total units of shares traded throughout the week sta-nds at 7,40,764 for Rs 380.51 million. Out of the total transactions, transaction of companies under ‘A’ class occupies 53.10 per cent.
National Hydropower topped the list in terms of monetary value and Gurkha Development Bank topped in terms of number of transactions with 155 transactions this week.
India to review Nepal policy
India to review Nepal policy
Nepalnews.com, 14-Oct-07
In the changing context of Nepali politics, the Indian government has begun discussion on possible amendment of its policy on Nepal.
Gopal Khanal writes in The Kathmandu Post from New Delhi that experts on Nepal have been given the responsibility to suggest to the government on the kind of strategy that India must adopt taking into consideration the changing political spheres in Nepal.
The experts have been asked to answer on Indian influences in Nepal's Terai community, impact on India due to change in Nepali politics and basis of Nepal-India relation in newer context. The government has also asked the experts if the 1950 bilateral treaty is still relevant.
The communist groups in Nepal have long advocated amendment in the 1950 treaty to which India had not paid attention. Former prime minister Man Mohan Adhikari had formally asked the Indian government to review the treaty.
India has taken steps to review the treaty after it revived the bilateral treaty with Bhutan.
Khanal writes that the experts have also been told to find answers on what the ground would be for Nepal-India relations if Maoists win in the upcoming constituent assembly elections.
This is the first time than India has begun massive change in its policies towards Nepal after India’s independence in 1947.
Nepalnews.com, 14-Oct-07
In the changing context of Nepali politics, the Indian government has begun discussion on possible amendment of its policy on Nepal.
Gopal Khanal writes in The Kathmandu Post from New Delhi that experts on Nepal have been given the responsibility to suggest to the government on the kind of strategy that India must adopt taking into consideration the changing political spheres in Nepal.
The experts have been asked to answer on Indian influences in Nepal's Terai community, impact on India due to change in Nepali politics and basis of Nepal-India relation in newer context. The government has also asked the experts if the 1950 bilateral treaty is still relevant.
The communist groups in Nepal have long advocated amendment in the 1950 treaty to which India had not paid attention. Former prime minister Man Mohan Adhikari had formally asked the Indian government to review the treaty.
India has taken steps to review the treaty after it revived the bilateral treaty with Bhutan.
Khanal writes that the experts have also been told to find answers on what the ground would be for Nepal-India relations if Maoists win in the upcoming constituent assembly elections.
This is the first time than India has begun massive change in its policies towards Nepal after India’s independence in 1947.
Saturday, October 13, 2007
Hoarding prolongs fuel shortage
Hoarding prolongs fuel shortage
eKantipur.com, 12-Oct-07
Even though Nepal Oil Corporation (NOC) says it is supplying more than the regular volume of petrol, a shortage of the popular vehicular fuel prevails in the market.
Queues are visible at all the refilling stations, and consumers have not been able to get hold of the fuel with ease. Petrol pump operators say they cannot issue as much petrol as the consumers demand, as they have to ensure that everybody who lines up at the station gets at least a few liters.
A manager at the Sajha refilling station said he has reduced the quota per person to Rs 300 worth of petrol. Previously, the pump was providing Rs 500 worth of fuel.
Consumers, on the other hand, said they did not believe the supply would become normal anytime soon. "The best way to ensure future availability is to maintain personal stocks at home," said Rajan Nakarmi of Gwarko.
Talking to the Post at the Sajha petrol pump, Nakarmi said he queued up at the pump twice during the last four days and managed to get 20 liters of petrol for the reserve he was keeping at home. "I am relaxed now. The stash will be enough for the next two months," he said.
Officials at the NOC said that lines still prevail at the refilling stations solely because of the increased tendency to hoard the fuel.
Ichchha Bikram Thapa, NOC spokesperson, said that the corporation supplied on average 200,000 liters of petrol daily in the market for the last 15 days.
"We pumped out 25 percent more petrol than the normal daily demand. If the problem of hoarding had not arisen, the supply would have become normal by now," he said.
NOC records show that the corporation distributed 135,000 liters of petrol on Wednesday and 200,000 liters on Thursday.
Since Friday was a public holiday, it did not provide any supply in the market. As a result, all the gas stations remained closed today.
Thapa said that the corporation has been receiving 2,000 kiloliters of petroleum products from India every day, which is equivalent to the country's normal fuel demand.
He added that the corporation would distribute petrol on Saturday, despite its being a holiday.
Sarad Bhandari, general secretary of the Nepal Petroleum Dealers Association, said that the corporation would need to maintain the current supply level for yet another week to improve the situation.
He admitted that the rise in the incidence of hoarding was largely prolonging the crisis.
eKantipur.com, 12-Oct-07
Even though Nepal Oil Corporation (NOC) says it is supplying more than the regular volume of petrol, a shortage of the popular vehicular fuel prevails in the market.
Queues are visible at all the refilling stations, and consumers have not been able to get hold of the fuel with ease. Petrol pump operators say they cannot issue as much petrol as the consumers demand, as they have to ensure that everybody who lines up at the station gets at least a few liters.
A manager at the Sajha refilling station said he has reduced the quota per person to Rs 300 worth of petrol. Previously, the pump was providing Rs 500 worth of fuel.
Consumers, on the other hand, said they did not believe the supply would become normal anytime soon. "The best way to ensure future availability is to maintain personal stocks at home," said Rajan Nakarmi of Gwarko.
Talking to the Post at the Sajha petrol pump, Nakarmi said he queued up at the pump twice during the last four days and managed to get 20 liters of petrol for the reserve he was keeping at home. "I am relaxed now. The stash will be enough for the next two months," he said.
Officials at the NOC said that lines still prevail at the refilling stations solely because of the increased tendency to hoard the fuel.
Ichchha Bikram Thapa, NOC spokesperson, said that the corporation supplied on average 200,000 liters of petrol daily in the market for the last 15 days.
"We pumped out 25 percent more petrol than the normal daily demand. If the problem of hoarding had not arisen, the supply would have become normal by now," he said.
NOC records show that the corporation distributed 135,000 liters of petrol on Wednesday and 200,000 liters on Thursday.
Since Friday was a public holiday, it did not provide any supply in the market. As a result, all the gas stations remained closed today.
Thapa said that the corporation has been receiving 2,000 kiloliters of petroleum products from India every day, which is equivalent to the country's normal fuel demand.
He added that the corporation would distribute petrol on Saturday, despite its being a holiday.
Sarad Bhandari, general secretary of the Nepal Petroleum Dealers Association, said that the corporation would need to maintain the current supply level for yet another week to improve the situation.
He admitted that the rise in the incidence of hoarding was largely prolonging the crisis.
Friday, October 12, 2007
NRB MACRO-ECONOMIC report : Revenue generation satisfactory
NRB MACRO-ECONOMIC report : Revenue generation satisfactory
ArthaExpress, 11-Oct-07
Revenue mobilisation during the first month of current fiscal year 2007-08 has been satisfactory, as it grew significantly by 41.2 per cent to Rs 7.13 billion in comparison to the corresponding period last year. The revenue generation had gone up by 11.3 per cent during the same period last year.
High rate of growth in VAT and some non-tax revenue has contributed to such a high acceleration in revenue mobilisation, according to the macroeconomic report published by Nepal Rastra Bank (NRB).
In the review period revenue from VAT and excise duty recorded a higher growth, compared to that of the corresponding period of the previous year. However, customs revenue has declined in the review period, the revenue from income tax witnessed a decelerated growth.
In the first month of 2007-08, total government spending increased by 25.3 per cent to Rs 3.64 billion in contrast to a decline of 17.3 per cent in the corresponding period of the previous year. The increase was due to a rise in recurrent as well as freeze expenditure. The recurrent expenditure rose by 63.8 per cent to Rs 1.24 billion. In the corresponding month of the previous year, recurrent expenditure had increased by 33.9 per cent.
The increase in the salary of civil servants and the compensation to conflict-hit accounted for such a high growth in recurrent expenditure.
During the review period, the government received foreign cash loans of Rs 127.70 million and foreign cash grants of Rs 359.3 million. It had received foreign cash loans of Rs 99.6 million and foreign cash grants of Rs 605.2 million in the corresponding period of the previous year.
In the foreign trade front, exports rose by 10 per cent in contrast to a decline of 2.6 per cent in the corresponding period. Out of the total exports, export to India went up by 8.3 per cent, while the exports to other countries soared by 13.3 per cent.
The rise in the exports to India was attributed to the upsurge in exports of zinc sheet, chemicals, jute goods, MS pipe and polyester yarn. Similarly, exports to other countries took an upward trend owing to growth in exports of pulses, silverware and jewellery, packing materials of paper and buttons.
Total imports also increased by 13.8 per cent comp-ared to a growth of 7.1 per cent in the corresponding period last year. While imports from India went up by 14.5 per cent, imports from other countries rose by 12.6 per cent in comparison to growth of just 0.2 per cent last year.
A rise in the import of petroleum products, MS billet, vehicles and spare parts, cold rolled sheet among others, from India and gold, crude soybean oil, telecommunication, transport equipment and parts and polythene granules, among others, from other countries led to a rise in total imports during the review period in comparison to last year.
ArthaExpress, 11-Oct-07
Revenue mobilisation during the first month of current fiscal year 2007-08 has been satisfactory, as it grew significantly by 41.2 per cent to Rs 7.13 billion in comparison to the corresponding period last year. The revenue generation had gone up by 11.3 per cent during the same period last year.
High rate of growth in VAT and some non-tax revenue has contributed to such a high acceleration in revenue mobilisation, according to the macroeconomic report published by Nepal Rastra Bank (NRB).
In the review period revenue from VAT and excise duty recorded a higher growth, compared to that of the corresponding period of the previous year. However, customs revenue has declined in the review period, the revenue from income tax witnessed a decelerated growth.
In the first month of 2007-08, total government spending increased by 25.3 per cent to Rs 3.64 billion in contrast to a decline of 17.3 per cent in the corresponding period of the previous year. The increase was due to a rise in recurrent as well as freeze expenditure. The recurrent expenditure rose by 63.8 per cent to Rs 1.24 billion. In the corresponding month of the previous year, recurrent expenditure had increased by 33.9 per cent.
The increase in the salary of civil servants and the compensation to conflict-hit accounted for such a high growth in recurrent expenditure.
During the review period, the government received foreign cash loans of Rs 127.70 million and foreign cash grants of Rs 359.3 million. It had received foreign cash loans of Rs 99.6 million and foreign cash grants of Rs 605.2 million in the corresponding period of the previous year.
In the foreign trade front, exports rose by 10 per cent in contrast to a decline of 2.6 per cent in the corresponding period. Out of the total exports, export to India went up by 8.3 per cent, while the exports to other countries soared by 13.3 per cent.
The rise in the exports to India was attributed to the upsurge in exports of zinc sheet, chemicals, jute goods, MS pipe and polyester yarn. Similarly, exports to other countries took an upward trend owing to growth in exports of pulses, silverware and jewellery, packing materials of paper and buttons.
Total imports also increased by 13.8 per cent comp-ared to a growth of 7.1 per cent in the corresponding period last year. While imports from India went up by 14.5 per cent, imports from other countries rose by 12.6 per cent in comparison to growth of just 0.2 per cent last year.
A rise in the import of petroleum products, MS billet, vehicles and spare parts, cold rolled sheet among others, from India and gold, crude soybean oil, telecommunication, transport equipment and parts and polythene granules, among others, from other countries led to a rise in total imports during the review period in comparison to last year.
700 small water projects face crisis
700 small water projects face crisis
eKantipur.com, 11-Oct-07
BY THIRA L BHUSAL
Around 700 small, under-construction water supply projects, undertaken by district development committees (DDCs) are facing a serious crisis.
Unless the government makes a drastic move to expedite the work and increase budget accordingly, many of the projects will never be completed, say those aware of the current state of affairs. And, many other projects are likely to be completed only after the projects' lifespan has elapsed.
Nationwide 688 small projects are under-construction through DDCs. The district bodies have a hand in altogether 944 such projects - 324 initiated by the DDC's, and the rest handed over to it by the Department of Water Supply and Sewerage (DWSS). The DDCs have already completed 256 projects.
More than 100 projects have been under construction for over 10 years, while another 518 projects have been under-construction for around five years.
Though each project's lifespan is estimated at about 20 years, no official can say when they would be completed.
If such projects cannot be completed within three years from the beginning, their utility decreases while construction cost rises each year. "Therefore, before releasing budget we strictly insist on the completion of a project within three years," said Jagdish Sharma, engineer at Department of Local Infrastructure Development and Agricultural Roads (DoLIDAR), the central technical department that coordinates the projects and provides technical manpower to DDCs.
Although DoLIDAR's priority is toward old schemes, it is rarely applied in practice at the local level. They rather start new projects as per the convenience and preference of local political leaders, according to officials.
A study made by DoLIDAR shows that an additional four billion rupees is required to complete these projects, but budget allocation is usually around Rs 400 to 500 million each year. The government has allocated 442 million rupees for the sector for the current fiscal year. "With such a budget allocation, another 10 to 12 years will be required to complete these projects, that too if no new project is initiated within this period," a DoLIDAR paper said.
The government handed over water supply schemes to DDCs as per the principle of strengthening local bodies and in accordance with the Local Self-Governance Act-1999.
Experts working in the sector opined that the DDC is the body that should oversee, coordinate, monitor and issue permission to work in the districts. "DDC should be powerful and it should have authority to give or deny permission to NGOs to work in the district. But that is not the case," said Santosh Basnet, Technical Development Manager of Nepal Water for Health (NEWAH), an NGO working in the sector.
In fact the DWSS should have been working as a small unit of experts to formulate policy guidelines while the DDCs should undertake all the work and responsibilities, Basnet opined.
Though everyone seems to be advocating the idea of decentralization and strengthening of the DDCs, in practice, the DWSS officials do not want to lose the dominance that they have been exercising for several years in the sector, said an expert preferring anonymity.
According to Senior Divisional Engineer at DoLIDAR, Kamal Jaishi, DoLIDAR is not as efficient and equipped as the DWSS because the latter's expertise is specifically for water supply while DoLIDAR has to oversee other fields of infrastructure development, such as - roads, bridges, irrigation, sewerage etc.
Director General of DoLIDAR, Dhan Bahadur Tamang said it was not DoLIDAR that was responsible for the present state of affairs of the projects. "When the DWSS handed the projects to us, they were already unmanageable," he said.
According to DoLIDAR, scarcity of technical manpower - mainly engineers and sub-engineers in the districts is another problem. Around 30 positions of engineers and around 50 positions for sub-engineers are vacant.
eKantipur.com, 11-Oct-07
BY THIRA L BHUSAL
Around 700 small, under-construction water supply projects, undertaken by district development committees (DDCs) are facing a serious crisis.
Unless the government makes a drastic move to expedite the work and increase budget accordingly, many of the projects will never be completed, say those aware of the current state of affairs. And, many other projects are likely to be completed only after the projects' lifespan has elapsed.
Nationwide 688 small projects are under-construction through DDCs. The district bodies have a hand in altogether 944 such projects - 324 initiated by the DDC's, and the rest handed over to it by the Department of Water Supply and Sewerage (DWSS). The DDCs have already completed 256 projects.
More than 100 projects have been under construction for over 10 years, while another 518 projects have been under-construction for around five years.
Though each project's lifespan is estimated at about 20 years, no official can say when they would be completed.
If such projects cannot be completed within three years from the beginning, their utility decreases while construction cost rises each year. "Therefore, before releasing budget we strictly insist on the completion of a project within three years," said Jagdish Sharma, engineer at Department of Local Infrastructure Development and Agricultural Roads (DoLIDAR), the central technical department that coordinates the projects and provides technical manpower to DDCs.
Although DoLIDAR's priority is toward old schemes, it is rarely applied in practice at the local level. They rather start new projects as per the convenience and preference of local political leaders, according to officials.
A study made by DoLIDAR shows that an additional four billion rupees is required to complete these projects, but budget allocation is usually around Rs 400 to 500 million each year. The government has allocated 442 million rupees for the sector for the current fiscal year. "With such a budget allocation, another 10 to 12 years will be required to complete these projects, that too if no new project is initiated within this period," a DoLIDAR paper said.
The government handed over water supply schemes to DDCs as per the principle of strengthening local bodies and in accordance with the Local Self-Governance Act-1999.
Experts working in the sector opined that the DDC is the body that should oversee, coordinate, monitor and issue permission to work in the districts. "DDC should be powerful and it should have authority to give or deny permission to NGOs to work in the district. But that is not the case," said Santosh Basnet, Technical Development Manager of Nepal Water for Health (NEWAH), an NGO working in the sector.
In fact the DWSS should have been working as a small unit of experts to formulate policy guidelines while the DDCs should undertake all the work and responsibilities, Basnet opined.
Though everyone seems to be advocating the idea of decentralization and strengthening of the DDCs, in practice, the DWSS officials do not want to lose the dominance that they have been exercising for several years in the sector, said an expert preferring anonymity.
According to Senior Divisional Engineer at DoLIDAR, Kamal Jaishi, DoLIDAR is not as efficient and equipped as the DWSS because the latter's expertise is specifically for water supply while DoLIDAR has to oversee other fields of infrastructure development, such as - roads, bridges, irrigation, sewerage etc.
Director General of DoLIDAR, Dhan Bahadur Tamang said it was not DoLIDAR that was responsible for the present state of affairs of the projects. "When the DWSS handed the projects to us, they were already unmanageable," he said.
According to DoLIDAR, scarcity of technical manpower - mainly engineers and sub-engineers in the districts is another problem. Around 30 positions of engineers and around 50 positions for sub-engineers are vacant.
Poor industrial environment leads to investment withdrawal
eKantipur.com 11-Oct-07
The deteriorating industrial environment in the recent days has prompted withdrawal of investment from the Birgunj industrial corridor.
Protracted labor problems, a weakening law and order situation as well as frequent strikes in the tarai region are some of the factor that are leading to closure of more than half a dozen industries here while most the remaining industries are embroiled in labor disputes.
Jason's Chemical, has already packed up from Birgunj where as Ganga Chemical Industries (GCI), opened some three years back with an investment of over Rs 1 billion and has an annual turnover of around Rs 4 billion, is also following suit, local business men said. Both were opened in collaboration with Indian companies.
According to Bijaya Sarawagi, the immediate past president of Birgunj Chamber of Commerce and Industry, GCI is all set to shift to Sri Lanka where as Pashupatinath Industry and Concept Pharmaceuticals are also preparing to shift from Nepal.
"More than 52 industries along the industrial corridor are in the brink of closure," Sarawagi said.
Eastern Textile, Triveni Textile, Pashupatinath Industry, Concepts Pharmaceuticals and Necon Plastics are among those which have already stopped production.
They were closed due to protracted labor disputes that emerged from different kinds of demands by trade unions.
"Disputes between the Maoist and UML affiliated trade unions led to the closure of most of the industries," Sarawagi further added.
However, Amrit Joshi, chairman of Nepal Trade Union Congress - Parsa, claimed that the dispute had deepened due to lack of implementation of provision of appointment letters and categorization of designation of workers as stated in the labor act.
eKantipur.com 11-Oct-07
The deteriorating industrial environment in the recent days has prompted withdrawal of investment from the Birgunj industrial corridor.
Protracted labor problems, a weakening law and order situation as well as frequent strikes in the tarai region are some of the factor that are leading to closure of more than half a dozen industries here while most the remaining industries are embroiled in labor disputes.
Jason's Chemical, has already packed up from Birgunj where as Ganga Chemical Industries (GCI), opened some three years back with an investment of over Rs 1 billion and has an annual turnover of around Rs 4 billion, is also following suit, local business men said. Both were opened in collaboration with Indian companies.
According to Bijaya Sarawagi, the immediate past president of Birgunj Chamber of Commerce and Industry, GCI is all set to shift to Sri Lanka where as Pashupatinath Industry and Concept Pharmaceuticals are also preparing to shift from Nepal.
"More than 52 industries along the industrial corridor are in the brink of closure," Sarawagi said.
Eastern Textile, Triveni Textile, Pashupatinath Industry, Concepts Pharmaceuticals and Necon Plastics are among those which have already stopped production.
They were closed due to protracted labor disputes that emerged from different kinds of demands by trade unions.
"Disputes between the Maoist and UML affiliated trade unions led to the closure of most of the industries," Sarawagi further added.
However, Amrit Joshi, chairman of Nepal Trade Union Congress - Parsa, claimed that the dispute had deepened due to lack of implementation of provision of appointment letters and categorization of designation of workers as stated in the labor act.
Onion prices rise as India bars export
Onion prices rise as India bars export
eKantipur.com, 11-Oct-07
A restriction on the export of onions by India has led to a dramatic rise in the price of the vegetable, even as prices of most other vegetables are a]lready high because of continuing shortages in the Kathmandu valley.
The price of onions touched Rs 50 per kg on Thursday at the Kalimati wholesale market. They were selling for about Rs 35 per kg two weeks ago when the supply situation was relatively better. "Onions are in such short supply in India that the Indian government has slapped restrictions on their export to prevent a crisis in the market," Bharat Upreti, a wholesaler and importer of onions at the Kalimati vegetable market, told the Post.
Citing a paucity of onions in India, major suppliers have stopped shipping the popular vegetable to Nepal.
Following the ban, the supply of onions from India has come almost to a halt. "Whatever that is coming is coming unofficially and through clandestine routes taking advantage of the porous border," said Upreti.
According to traders, the volume of onion supplies from India at the Kalimati vegetable market has dwindled to a meager six tons daily from over 60 tons previously. Nepal imports most of its onions from Nashik in the Indian state of Maharashtra.
Responding to the short supply and rising price of onions, imports from China are finding their way into the Nepali market.
Although the quantities coming in are small, Chinese onions have helped check the price rise. "If it had not been for Chinese onions, the price would have crossed over Rs 80 per kg," said Binaya Shrestha, planning officer of the Kalimati Fruits and Vegetables Market Development Board (KFVMDB). Shrestha expects onion prices to remain on the higher side until the next harvest season in November.
Likewise, the price of potatoes has inched upwards marginally over the past two weeks. The prices of red and white potatoes were about Rs 25 and Rs 22 per kg respectively on Thursday. However, to the relief of consumers, tomato prices tumbled over the past two weeks.
According to the KFVMDB, the going rates for big and small tomatoes were Rs 23 and Rs 19 per kg respectively on Thursday, a steep drop from Rs 35 and Rs 39 two weeks ago.
eKantipur.com, 11-Oct-07
A restriction on the export of onions by India has led to a dramatic rise in the price of the vegetable, even as prices of most other vegetables are a]lready high because of continuing shortages in the Kathmandu valley.
The price of onions touched Rs 50 per kg on Thursday at the Kalimati wholesale market. They were selling for about Rs 35 per kg two weeks ago when the supply situation was relatively better. "Onions are in such short supply in India that the Indian government has slapped restrictions on their export to prevent a crisis in the market," Bharat Upreti, a wholesaler and importer of onions at the Kalimati vegetable market, told the Post.
Citing a paucity of onions in India, major suppliers have stopped shipping the popular vegetable to Nepal.
Following the ban, the supply of onions from India has come almost to a halt. "Whatever that is coming is coming unofficially and through clandestine routes taking advantage of the porous border," said Upreti.
According to traders, the volume of onion supplies from India at the Kalimati vegetable market has dwindled to a meager six tons daily from over 60 tons previously. Nepal imports most of its onions from Nashik in the Indian state of Maharashtra.
Responding to the short supply and rising price of onions, imports from China are finding their way into the Nepali market.
Although the quantities coming in are small, Chinese onions have helped check the price rise. "If it had not been for Chinese onions, the price would have crossed over Rs 80 per kg," said Binaya Shrestha, planning officer of the Kalimati Fruits and Vegetables Market Development Board (KFVMDB). Shrestha expects onion prices to remain on the higher side until the next harvest season in November.
Likewise, the price of potatoes has inched upwards marginally over the past two weeks. The prices of red and white potatoes were about Rs 25 and Rs 22 per kg respectively on Thursday. However, to the relief of consumers, tomato prices tumbled over the past two weeks.
According to the KFVMDB, the going rates for big and small tomatoes were Rs 23 and Rs 19 per kg respectively on Thursday, a steep drop from Rs 35 and Rs 39 two weeks ago.
Thursday, October 11, 2007
Netfox launches remittance services from UK
Netfox launches remittance services from UK
Nepalnews.com, 11-Oct-07
In an endeavour to facilitate the transfer of remittance from UK to Nepal, NETFOX LTD has teamed up with Himalayan Bank Limited (HBL) to provide financial services to Non-Resident Nepalese residing in the UK.
With the recent agreement with HBL, NETFOX is now able to transfer and pay money directly to 200 different locations including all banks and their branches all over Nepal. "NETFOX aims to bridge the gap between Nepali bankers and Nepalese residing in UK by providing account opening services and thereby transferring money instantly to their nominated accounts or cash payments to their beloved ones," said a statement. Besides, NETFOX and HBL are working together to facilitate remittance transfer or other investment opportunities or simply buying personal properties in Nepal, the statement added.
Incorporated under England & Wales companies Act 1985 as a private company, NETFOX LTD is currently providing its services to various importers, INGOS and individuals meeting their various demands for Euro, GBP and US dollars in their designated bank in different parts of the world and cash collection at designated collection points in Nepal in safe, convenient, speedy and economical way, the statement said.
NETFOX has teamed up with selected banks such as Barclays Bank UK, Allied Irish Bank UK, HSBC Bank UK and Himalayan Bank Nepal to serve its customers.
Nepalnews.com, 11-Oct-07
In an endeavour to facilitate the transfer of remittance from UK to Nepal, NETFOX LTD has teamed up with Himalayan Bank Limited (HBL) to provide financial services to Non-Resident Nepalese residing in the UK.
With the recent agreement with HBL, NETFOX is now able to transfer and pay money directly to 200 different locations including all banks and their branches all over Nepal. "NETFOX aims to bridge the gap between Nepali bankers and Nepalese residing in UK by providing account opening services and thereby transferring money instantly to their nominated accounts or cash payments to their beloved ones," said a statement. Besides, NETFOX and HBL are working together to facilitate remittance transfer or other investment opportunities or simply buying personal properties in Nepal, the statement added.
Incorporated under England & Wales companies Act 1985 as a private company, NETFOX LTD is currently providing its services to various importers, INGOS and individuals meeting their various demands for Euro, GBP and US dollars in their designated bank in different parts of the world and cash collection at designated collection points in Nepal in safe, convenient, speedy and economical way, the statement said.
NETFOX has teamed up with selected banks such as Barclays Bank UK, Allied Irish Bank UK, HSBC Bank UK and Himalayan Bank Nepal to serve its customers.
BOP posts a deficit of Rs 1.6b: Nepalis spent more on foreign education, travel and transportation
BOP posts a deficit of Rs 1.6b
Nepalis spent more on foreign education, travel and transportation
eKantipur.com, 10-Oct-07
The country registered a deficit of Rs 1.60 billion in balance of payment (BOP) in the first month of this fiscal year, indicating
that Nepalis spent more money on foreign education, travel and transportation during the period.
The BOP had a surplus of Rs. 2.83 billion in the corresponding month last year.
“More money went for financing education, travel and transportation outside the country while what we received from foreign tourists, however, did not go up,” said Nar Bahadur Thapa, director of the Research Department of Nepal Rastra Bank (NRB), explaining the reason behind the BoP deficit.
Exports and imports, however, showed some improvements during the period, says a central bank's report on the latest macro-economic situation of the country.
According to NRB, total exports rose by 10 percent during the period - thanks to upsurge in the export of zinc sheets, chemicals, jute products, polyester ion, pulses, silverware and jewelries, among others.
Likewise, the import grew by 13.8 percent as the country consumed more vehicles and spare parts, cold-rolled sheets, gold, crude soybean oil, telecommunication equipments and other parts.
During the month, Nepal received remittance totaling Rs 9.36 billion, which is a rise of 21.4 percent compared to the same period last year.
"Inflation slightly eased down to 6.3 percent from 7.3 percent," says the report, adding that strengthening of Nepali currency vis-Ã -vis US dollar made imports cheaper and impact of previous rise in prices of petroleum product also withered away during the period.
During the month, total government spending increased by 25.3 percent to Rs.3.64 billion. The spending soared due mainly to whopping growth in the recurrent expenditure resulting from the rise in salary of civil servants and compensation given to conflict-affected people.
On the revenue front, NRB report portrays a remarkable good picture. According to the report, the government recorded a 41.2 percent rise in revenue collection to Rs.7.13 billion.
Nepalis spent more on foreign education, travel and transportation
eKantipur.com, 10-Oct-07
The country registered a deficit of Rs 1.60 billion in balance of payment (BOP) in the first month of this fiscal year, indicating
that Nepalis spent more money on foreign education, travel and transportation during the period.
The BOP had a surplus of Rs. 2.83 billion in the corresponding month last year.
“More money went for financing education, travel and transportation outside the country while what we received from foreign tourists, however, did not go up,” said Nar Bahadur Thapa, director of the Research Department of Nepal Rastra Bank (NRB), explaining the reason behind the BoP deficit.
Exports and imports, however, showed some improvements during the period, says a central bank's report on the latest macro-economic situation of the country.
According to NRB, total exports rose by 10 percent during the period - thanks to upsurge in the export of zinc sheets, chemicals, jute products, polyester ion, pulses, silverware and jewelries, among others.
Likewise, the import grew by 13.8 percent as the country consumed more vehicles and spare parts, cold-rolled sheets, gold, crude soybean oil, telecommunication equipments and other parts.
During the month, Nepal received remittance totaling Rs 9.36 billion, which is a rise of 21.4 percent compared to the same period last year.
"Inflation slightly eased down to 6.3 percent from 7.3 percent," says the report, adding that strengthening of Nepali currency vis-Ã -vis US dollar made imports cheaper and impact of previous rise in prices of petroleum product also withered away during the period.
During the month, total government spending increased by 25.3 percent to Rs.3.64 billion. The spending soared due mainly to whopping growth in the recurrent expenditure resulting from the rise in salary of civil servants and compensation given to conflict-affected people.
On the revenue front, NRB report portrays a remarkable good picture. According to the report, the government recorded a 41.2 percent rise in revenue collection to Rs.7.13 billion.
Maid in Malaysia: Door opens for Nepali jobseekers
Maid in Malaysia: Door opens for Nepali jobseekers
eKantipur.com, 10-Oct-07
The Malaysian government is soon allowing its citizens to recruit housemaids from Nepal and three other countries, opening a new avenue for aspiring female overseas jobseekers.
According to news reports, Malaysia is preparing to accept a new group of foreign workers from its existing pool of labor exporting countries in order to ease the shortage of domestic workers.
Malaysian daily the Malaysia Star said that Malaysians would soon be able to hire maids from Nepal, India, Laos and Vietnam because of increasing domestic demand as well as the difficulty in getting domestic helpers from Indonesia, its major source country.
The report quoted Deputy Prime Minister Datuk Seri Najib Tun Razak as saying that the recruitment from the four countries including Nepal would take place once memorandums of understanding were signed with the respective countries.
Talking to the press after chairing the Cabinet Committee on Foreign Workers Wednesday, Najib said the Human Resource Ministry would conduct a study on the country's need for foreign workers while also taking into consideration the problems that came with having more of them.
“Based on the findings of the study, the committee will decide on a policy on foreign worker recruitment,” the report quoted Najib as saying.
“This is good news, but we have not received any official confirmation about it,” said Keshar Bahadur Baniya, director general of the Department of Labor.
Officials at the Ministry of Labor also failed to reconfirm the report. If true, it will enable Nepal to send a substantial number of female workers to Malaysia, they said.
So far, Nepal has sent a meager number of women workers to Malaysia who were absorbed into jobs other than domestic work.
According to the Labor Department's data, a total of 71,074 Nepalis left for jobs in Malaysia during the last fiscal year, making it the most popular destination for Nepali workers.
Reports say that Malaysia currently employs 317,537 foreign maids, most of whom are from Indonesia, the Philippines, Thailand, Sri Lanka and Cambodia.
As of September 30 this year, there were 2,021,099 foreign workers employed in various sectors in Malaysia, including manufacturing, plantation, housework, construction, service industry and agriculture.
Of the total number of overseas workers employed in Malaysia, 57 percent were from Indonesia and 11 percent were from Nepal, according to the official data of the Malaysian government.
eKantipur.com, 10-Oct-07
The Malaysian government is soon allowing its citizens to recruit housemaids from Nepal and three other countries, opening a new avenue for aspiring female overseas jobseekers.
According to news reports, Malaysia is preparing to accept a new group of foreign workers from its existing pool of labor exporting countries in order to ease the shortage of domestic workers.
Malaysian daily the Malaysia Star said that Malaysians would soon be able to hire maids from Nepal, India, Laos and Vietnam because of increasing domestic demand as well as the difficulty in getting domestic helpers from Indonesia, its major source country.
The report quoted Deputy Prime Minister Datuk Seri Najib Tun Razak as saying that the recruitment from the four countries including Nepal would take place once memorandums of understanding were signed with the respective countries.
Talking to the press after chairing the Cabinet Committee on Foreign Workers Wednesday, Najib said the Human Resource Ministry would conduct a study on the country's need for foreign workers while also taking into consideration the problems that came with having more of them.
“Based on the findings of the study, the committee will decide on a policy on foreign worker recruitment,” the report quoted Najib as saying.
“This is good news, but we have not received any official confirmation about it,” said Keshar Bahadur Baniya, director general of the Department of Labor.
Officials at the Ministry of Labor also failed to reconfirm the report. If true, it will enable Nepal to send a substantial number of female workers to Malaysia, they said.
So far, Nepal has sent a meager number of women workers to Malaysia who were absorbed into jobs other than domestic work.
According to the Labor Department's data, a total of 71,074 Nepalis left for jobs in Malaysia during the last fiscal year, making it the most popular destination for Nepali workers.
Reports say that Malaysia currently employs 317,537 foreign maids, most of whom are from Indonesia, the Philippines, Thailand, Sri Lanka and Cambodia.
As of September 30 this year, there were 2,021,099 foreign workers employed in various sectors in Malaysia, including manufacturing, plantation, housework, construction, service industry and agriculture.
Of the total number of overseas workers employed in Malaysia, 57 percent were from Indonesia and 11 percent were from Nepal, according to the official data of the Malaysian government.
Central bank declares NDB troubled bank
Central bank declares NDB troubled bank
eKantipur.com, 10-Oct-07
BY KRISHNA REGMI
Nepal Rastra Bank (NRB) Wednesday declared Nepal Development Bank (NDB) as a troubled bank and decided to intervene into its operation to protect depositors' interest and salvage it.
The central bank's move bars the Development Bank from issuing loans and advances, and freezes its asset transactions, said a highly-placed source at the NRB.
Even as such declaration normally does not allow the bank from mobilizing deposits, the bank would still be able to collect deposits owing to a sub judice case at the court.
"The NRB board of directors meeting today took the decision to safeguard further erosion of Development Bank's financial health," said the source. The central bank took the decision after the bank's resistance to NRB's past reform initiatives sharply eroded its financial health.
NRB had been closely scrutinizing the bank's activities after its report for fiscal year 2005/06 revealed that the bank's capital fund was in the negative by Rs 218 million. And, its per share value was negative by Rs 148. Of the total investment of Rs 623 million the bank made till then, around 85 million rupees was in non-performing loans.
The central bank issued various directives to the bank and even imposed a restriction for deposit mobilization. However, the bank produced a stay order on those decisions. In May, NRB had directed the bank to remove its Chairman, Uttam Pun, but the bank refused to comply.
Despite the problems, the bank had launched a deposit scheme, offering high interest rates up to eight percent to lure customers. The bank presently has around Rs 1.5 billion in deposit, including Rs 650 million from Nepal Provident Fund and Rs 450 million from Nepal Army.
The government has already asked the public sector institutions to withdraw their deposits after maturity from all banks having negative net worth.
This will compel both the depositors to take out their deposits from this troubled bank, thus steeply reducing its deposit base.
eKantipur.com, 10-Oct-07
BY KRISHNA REGMI
Nepal Rastra Bank (NRB) Wednesday declared Nepal Development Bank (NDB) as a troubled bank and decided to intervene into its operation to protect depositors' interest and salvage it.
The central bank's move bars the Development Bank from issuing loans and advances, and freezes its asset transactions, said a highly-placed source at the NRB.
Even as such declaration normally does not allow the bank from mobilizing deposits, the bank would still be able to collect deposits owing to a sub judice case at the court.
"The NRB board of directors meeting today took the decision to safeguard further erosion of Development Bank's financial health," said the source. The central bank took the decision after the bank's resistance to NRB's past reform initiatives sharply eroded its financial health.
NRB had been closely scrutinizing the bank's activities after its report for fiscal year 2005/06 revealed that the bank's capital fund was in the negative by Rs 218 million. And, its per share value was negative by Rs 148. Of the total investment of Rs 623 million the bank made till then, around 85 million rupees was in non-performing loans.
The central bank issued various directives to the bank and even imposed a restriction for deposit mobilization. However, the bank produced a stay order on those decisions. In May, NRB had directed the bank to remove its Chairman, Uttam Pun, but the bank refused to comply.
Despite the problems, the bank had launched a deposit scheme, offering high interest rates up to eight percent to lure customers. The bank presently has around Rs 1.5 billion in deposit, including Rs 650 million from Nepal Provident Fund and Rs 450 million from Nepal Army.
The government has already asked the public sector institutions to withdraw their deposits after maturity from all banks having negative net worth.
This will compel both the depositors to take out their deposits from this troubled bank, thus steeply reducing its deposit base.
Wednesday, October 10, 2007
Airlines unable to cope with Dashain rush
Airlines unable to cope with Dashain rush
ArthaExpress, 9-Oct-07
Kathmandu, October 9: The private domestic airlines are currently facing a crisis as they are unable to cope with the rise in the demand of air seats, thanks to the upcoming Dashain festival, which is a time when quite a lot of people travel to various destinations inside the country.
"Flights are over-booked. Even if we put eight to ten extra flights per week, it will not be enough to cope with the demand," Thakur Lamichane, Manager, Sales and Marketing, Gorkha Airlines said.
However, the airlines are not in a position to increase the number of domestic flights immediately. "We are not in a position to increase the number of flights. That is beyond the airline´s capacity at present," Lamichane added.
Pradeep Bikram Shah, Sales Director of Yeti Airlines too is of the same opinion. "We are trying to have more flights as per the requirement, but the demand is very high and the seats are not available," Shah said, adding, "No airline would want to keep aircrafts idle, so we are doing our best."
The airlines are particularly having problems with passengers wanting to fly from Kathmandu to Biratnagar, Bhadrapur, Lamidanda, Janakpur and Tumlingtar.
"The rush is mainly on Bhadrapur route as the demand is both ways. We have added 21 flights per week on this route," Binita Thapa, Sales Officer of Buddha Air told THT.
"There is no official record of inquiry and people waiting for seats with us, but we are getting just too many phone calls," she added.
At present, six airlines -- Nepal Airlines Corporation, Yeti, Gorkha, Buddha, Sita and Agni -- are catering to domestic sector and are flying to 36 destinations.
The other airlines -- Cosmic, Shangrila, Skyline and Dragon Airlines -- are currently not in operation. According to Nepal Tourism Statistic Report, 2005, released by the Ministry of Culture, Tourism and Civil Aviation, the total movement of passengers is estimated to be 2.4 million in a year.
ArthaExpress, 9-Oct-07
Kathmandu, October 9: The private domestic airlines are currently facing a crisis as they are unable to cope with the rise in the demand of air seats, thanks to the upcoming Dashain festival, which is a time when quite a lot of people travel to various destinations inside the country.
"Flights are over-booked. Even if we put eight to ten extra flights per week, it will not be enough to cope with the demand," Thakur Lamichane, Manager, Sales and Marketing, Gorkha Airlines said.
However, the airlines are not in a position to increase the number of domestic flights immediately. "We are not in a position to increase the number of flights. That is beyond the airline´s capacity at present," Lamichane added.
Pradeep Bikram Shah, Sales Director of Yeti Airlines too is of the same opinion. "We are trying to have more flights as per the requirement, but the demand is very high and the seats are not available," Shah said, adding, "No airline would want to keep aircrafts idle, so we are doing our best."
The airlines are particularly having problems with passengers wanting to fly from Kathmandu to Biratnagar, Bhadrapur, Lamidanda, Janakpur and Tumlingtar.
"The rush is mainly on Bhadrapur route as the demand is both ways. We have added 21 flights per week on this route," Binita Thapa, Sales Officer of Buddha Air told THT.
"There is no official record of inquiry and people waiting for seats with us, but we are getting just too many phone calls," she added.
At present, six airlines -- Nepal Airlines Corporation, Yeti, Gorkha, Buddha, Sita and Agni -- are catering to domestic sector and are flying to 36 destinations.
The other airlines -- Cosmic, Shangrila, Skyline and Dragon Airlines -- are currently not in operation. According to Nepal Tourism Statistic Report, 2005, released by the Ministry of Culture, Tourism and Civil Aviation, the total movement of passengers is estimated to be 2.4 million in a year.
Exporters face heat over pashmina's identity crisis
eKantipur.com, 9-Oct-07
Lack of proper definition and accreditation has exposed Nepali pashmina to a grave risk of losing leading European and Japanese markets, following which exporters have urged the government to set up an agency at the earliest to define and certify the products.
“We have already had an unpleasant incident in Japan once, and many more countries including Italy and Spain have also mounted pressure on us to come up with a definition and certification for Nepali pashmina to avoid restriction on imports,” said Shankar Pandey, president of the Nepal Pashmina Entrepreneurs Association.
While citing that countries such as Italy and Spain have warned of imposing a ban on the import if a product definition and standard certification is not established by 2008, Pandey said the government must act promptly if it wished to protect the country's third largest export.
Holding a series of meetings with officials of the Ministry of Industry, Commerce and Supplies, entrepreneurs have pushed the ministry to set up a mechanism to accredit Nepali products in order to enable them to remain in the European and Japanese markets.
The entrepreneurs have sought the involvement of the Nepal Bureau of Standards and Metrology to define the quality standard of pashmina and issue quality certifications. “The bureau already has a well-equipped laboratory. It only needs to update it. Once that is done, it can carry out the quality testing work with ease,” said Pandey.
The entrepreneurs have also asked the government to set up a separate body to inspect manufacturing units and exports in order to ensure that no other items are exported under the name of pashmina, and that the quality of the product is maintained.
They have demanded that the proposed body be legally empowered to take action against those who use the pashmina categorization to export undefined items or those of lesser quality. “We tried to control such activities through our association, but it lacked the legal grounds to take action against wrongdoers,” said Pandey.
The Nepali pashmina industry received a blow last June when Japan restricted entry of pashmina products demanding definition and standard certification. Other key importing countries such as Italy and Spain had also warned of similar action unless the manufacturers established the pashmina's identity.
Japan is the sixth largest importer of Nepali pashmina. Italy is the third largest buyer among European countries. Volume-wise, the European Union forms the largest market for Nepali pashmina.
Such actions from the leading pashmina importing countries came after unscrupulous exporters started dispatching items manufactured with viscous and polyester yarn and passing them off as pashmina.
In their action, Spain and Italy have already said they would ban pashmina import from 2008 if Nepal failed to define it. Several other European countries have also started demanding standard certifications, according to entrepreneurs.
“While situations like this clearly indicate that the third highest foreign currency earning export is on the verge of doom, the government is still slow in responding to our demands,” said Pandey.
eKantipur.com, 9-Oct-07
Lack of proper definition and accreditation has exposed Nepali pashmina to a grave risk of losing leading European and Japanese markets, following which exporters have urged the government to set up an agency at the earliest to define and certify the products.
“We have already had an unpleasant incident in Japan once, and many more countries including Italy and Spain have also mounted pressure on us to come up with a definition and certification for Nepali pashmina to avoid restriction on imports,” said Shankar Pandey, president of the Nepal Pashmina Entrepreneurs Association.
While citing that countries such as Italy and Spain have warned of imposing a ban on the import if a product definition and standard certification is not established by 2008, Pandey said the government must act promptly if it wished to protect the country's third largest export.
Holding a series of meetings with officials of the Ministry of Industry, Commerce and Supplies, entrepreneurs have pushed the ministry to set up a mechanism to accredit Nepali products in order to enable them to remain in the European and Japanese markets.
The entrepreneurs have sought the involvement of the Nepal Bureau of Standards and Metrology to define the quality standard of pashmina and issue quality certifications. “The bureau already has a well-equipped laboratory. It only needs to update it. Once that is done, it can carry out the quality testing work with ease,” said Pandey.
The entrepreneurs have also asked the government to set up a separate body to inspect manufacturing units and exports in order to ensure that no other items are exported under the name of pashmina, and that the quality of the product is maintained.
They have demanded that the proposed body be legally empowered to take action against those who use the pashmina categorization to export undefined items or those of lesser quality. “We tried to control such activities through our association, but it lacked the legal grounds to take action against wrongdoers,” said Pandey.
The Nepali pashmina industry received a blow last June when Japan restricted entry of pashmina products demanding definition and standard certification. Other key importing countries such as Italy and Spain had also warned of similar action unless the manufacturers established the pashmina's identity.
Japan is the sixth largest importer of Nepali pashmina. Italy is the third largest buyer among European countries. Volume-wise, the European Union forms the largest market for Nepali pashmina.
Such actions from the leading pashmina importing countries came after unscrupulous exporters started dispatching items manufactured with viscous and polyester yarn and passing them off as pashmina.
In their action, Spain and Italy have already said they would ban pashmina import from 2008 if Nepal failed to define it. Several other European countries have also started demanding standard certifications, according to entrepreneurs.
“While situations like this clearly indicate that the third highest foreign currency earning export is on the verge of doom, the government is still slow in responding to our demands,” said Pandey.
Tuesday, October 09, 2007
Nepal, India lose billions after election postponement
Nepal, India lose billions after election postponement
The Times of India, 9-Oct-07
Besides losing credibility at home and abroad for its repeated failures to hold the constituent assembly election, the Girija Prasad Koirala government has also lost his impoverished country as well as neighbour India billions with Friday’s decision to put off the November election once more.
Though the full extent of the loss was not known immediately, a private Nepali television channel estimates that the government wasted NRS 70 crore alone on printing election material, like ballot papers, the code of conduct and posters. Even if a fresh election date is announced Thursday, the piles of ballot paper would become useless junk if the government concedes the Maoist demand and switches over to a fully proportional representation system instead of the mixed system that had been adopted for the November 22 polls.
Generous election assistance had been pouring in from major donors, like India, US and EU. Besides assistance in the form of vehicles and voting machines, India has been flowing in its Election Commission officials for advice and recently, organised an elaborate seminar on constituent assembly.
The Times of India, 9-Oct-07
Besides losing credibility at home and abroad for its repeated failures to hold the constituent assembly election, the Girija Prasad Koirala government has also lost his impoverished country as well as neighbour India billions with Friday’s decision to put off the November election once more.
Though the full extent of the loss was not known immediately, a private Nepali television channel estimates that the government wasted NRS 70 crore alone on printing election material, like ballot papers, the code of conduct and posters. Even if a fresh election date is announced Thursday, the piles of ballot paper would become useless junk if the government concedes the Maoist demand and switches over to a fully proportional representation system instead of the mixed system that had been adopted for the November 22 polls.
Generous election assistance had been pouring in from major donors, like India, US and EU. Besides assistance in the form of vehicles and voting machines, India has been flowing in its Election Commission officials for advice and recently, organised an elaborate seminar on constituent assembly.
Stock trading at Nepse halted as market registers a steep fall
Stock trading at Nepse halted as market registers a steep fall
Nepalnews.com, 9-Oct-07
Four days after registering an impressive growth, the stock market recorded a steep fall Monday, proving right the fears of trade analysts that the overheated market may not be sustainable.
The Nepse index fell by a whooping 25.46 points to close at 873.92 points Monday, after which Nepse intervened and for the first time in its history, suspended trading for the day.
Reports quoted Nepse officials as saying that the decline was mainly due to the central bank’s latest directives, which cleared the way for increased supply of shares for trading and also tightened margin lending–loans against stocks.
Following the crash, the Nepse’s market capitalization decreased to Rs 269.1 billion from Rs 277 billion.
Referring to the cause behind the decline, officials said Nepal Rastra Bank (NRB) on Sunday directed banks and financial institutions to sell cross-holding shares—the stock that they owned in another bank or financial institutions.
Nepalnews.com, 9-Oct-07
Four days after registering an impressive growth, the stock market recorded a steep fall Monday, proving right the fears of trade analysts that the overheated market may not be sustainable.
The Nepse index fell by a whooping 25.46 points to close at 873.92 points Monday, after which Nepse intervened and for the first time in its history, suspended trading for the day.
Reports quoted Nepse officials as saying that the decline was mainly due to the central bank’s latest directives, which cleared the way for increased supply of shares for trading and also tightened margin lending–loans against stocks.
Following the crash, the Nepse’s market capitalization decreased to Rs 269.1 billion from Rs 277 billion.
Referring to the cause behind the decline, officials said Nepal Rastra Bank (NRB) on Sunday directed banks and financial institutions to sell cross-holding shares—the stock that they owned in another bank or financial institutions.
B'desh offers Rohalpur railway transit to Nepal
B'desh offers Rohalpur railway transit to Nepal
eKantipur.com, 8-Oct-07
Bangladesh on Monday agreed to allow Nepal to use Rohalpur as a new transit route to facilitate bilateral and third-country trade. However, it refused to extend duty-free market access for agricultural and primary goods on a unilateral basis as Nepal had requested.
“Bangladesh has already cut the duty to zero on some items, for others we are willing to go for a preferential trading arrangement,” said Bangladeshi Commerce Secretary Feroz Ahmed at the conclusion of the three-day commerce secretary-level bilateral talks Monday.
Nepal had handed over a list of 21 groups of products, mostly agricultural and primary goods, to Bangladeshi Commerce Ministry officials requesting duty-free entry facility for them in Bangladesh.
Officiating Nepali Commerce Secretary Purushottam Ojha said the three-day trade talks were successful as the two sides agreed to improve connectivity and harmonize transit and trading procedures at the earliest in order to facilitate bilateral trade.
“Most importantly, we came up with a working document for operating the transit facility provided to us,” he said. He added that the two sides would hold the next round of talks within two months to finalize the modality.
Although Nepal and Bangladesh signed a bilateral transit treaty in 1976, the two countries have not developed a working modality yet. This has rendered trading through the Kakarbhitta-Fulbari-Banglabandh route difficult, thus discouraging bilateral commerce.
On Monday, the Nepali and Bangladeshi commerce secretaries signed a memorandum agreeing to do away with the constraints seen in the movement of cargo vehicles, among others.
Talking to the Post, Ojha said that Bangladesh has agreed to facilitate entry of Nepali vehicles from the zero point on the Indo-Bangladesh border to the Banglabandh dry port in Bangladesh to facilitate two-way trade.
At present, Nepali exporters are required to transship their goods at the zero point where customs and other facilities are absent. This has been creating unnecessary hassles for traders.
As for the newly-offered transit route, Ojha said Rohalpur is a railway-based route, which can be connected with the Birgunj inland container depot via Singhbad in India. “We will have to talk with India for operationalizing it,” he said.
If India responds positively, it will link Nepal with Bangladesh's broad-gauge railway network, thereby facilitating better trading conditions for entrepreneurs.
Bangladesh also pledged to extend infrastructure and logistics support to Nepali export and import cargoes to lure entrepreneurs to conduct third-country trade via the Chittagong and Mangla ports.
Talking to the press, Ahmed further said that the two sides also agreed to exchange business delegations to facilitate business-to-business contacts.
Bangladesh is organizing a single-country trade fair in Kathmandu in December. The Nepali business community will also be taking part in trade fairs in Bangladesh, according to the officials.
eKantipur.com, 8-Oct-07
Bangladesh on Monday agreed to allow Nepal to use Rohalpur as a new transit route to facilitate bilateral and third-country trade. However, it refused to extend duty-free market access for agricultural and primary goods on a unilateral basis as Nepal had requested.
“Bangladesh has already cut the duty to zero on some items, for others we are willing to go for a preferential trading arrangement,” said Bangladeshi Commerce Secretary Feroz Ahmed at the conclusion of the three-day commerce secretary-level bilateral talks Monday.
Nepal had handed over a list of 21 groups of products, mostly agricultural and primary goods, to Bangladeshi Commerce Ministry officials requesting duty-free entry facility for them in Bangladesh.
Officiating Nepali Commerce Secretary Purushottam Ojha said the three-day trade talks were successful as the two sides agreed to improve connectivity and harmonize transit and trading procedures at the earliest in order to facilitate bilateral trade.
“Most importantly, we came up with a working document for operating the transit facility provided to us,” he said. He added that the two sides would hold the next round of talks within two months to finalize the modality.
Although Nepal and Bangladesh signed a bilateral transit treaty in 1976, the two countries have not developed a working modality yet. This has rendered trading through the Kakarbhitta-Fulbari-Banglabandh route difficult, thus discouraging bilateral commerce.
On Monday, the Nepali and Bangladeshi commerce secretaries signed a memorandum agreeing to do away with the constraints seen in the movement of cargo vehicles, among others.
Talking to the Post, Ojha said that Bangladesh has agreed to facilitate entry of Nepali vehicles from the zero point on the Indo-Bangladesh border to the Banglabandh dry port in Bangladesh to facilitate two-way trade.
At present, Nepali exporters are required to transship their goods at the zero point where customs and other facilities are absent. This has been creating unnecessary hassles for traders.
As for the newly-offered transit route, Ojha said Rohalpur is a railway-based route, which can be connected with the Birgunj inland container depot via Singhbad in India. “We will have to talk with India for operationalizing it,” he said.
If India responds positively, it will link Nepal with Bangladesh's broad-gauge railway network, thereby facilitating better trading conditions for entrepreneurs.
Bangladesh also pledged to extend infrastructure and logistics support to Nepali export and import cargoes to lure entrepreneurs to conduct third-country trade via the Chittagong and Mangla ports.
Talking to the press, Ahmed further said that the two sides also agreed to exchange business delegations to facilitate business-to-business contacts.
Bangladesh is organizing a single-country trade fair in Kathmandu in December. The Nepali business community will also be taking part in trade fairs in Bangladesh, according to the officials.
Tourism feels punch of political uncertainty
Tourism feels punch of political uncertainty
eKantipur.com, 8-Oct-07
BY KUL CHANDRA NEUPANE
Although travel trade entrepreneurs witnessed a record number of bookings from tourists this season, they lamented that the latest political uncertainty is badly affecting the actual turn out of visiotrs.
According to information provided by local hoteliers, some 50 percent of the bookings have been cancelled following the recent explosions in Kathmandu, frequent bandas, strikes and political uncertianty.
Most of the cancellations have been recorded for the month of October, and entrepreneurs said the cancellation of Constituent Assembly election could make the situation unsatifactory in November and December as well.
This is the season when Pokhara welcomes the maximum number of European and Japanese tourists.
“We had actually been over booked. If the tourist turn-out had equalled what had been booked, Pokhara would have found it difficult handle them all,” said Raj Kumar KC, manager at Shangrila Village Resort. Talking to the Post, he said that the resort had received 30 percent more booking requests than its total capacity for October. However, the actual occupancy barely stands at about 60 percent now.
Office bearers of the Regional Hotel Association said that hotels in Pokhara had received overwhelming booking requests this season compared to the last five years. The record bookings had even spurred new investment in the tourism sector.
Entrepreneurs had rennovated their service units for the first time in five years while hoteliers that had pulled down shutters had bounced back to the business.
Blue Bird had recently resumed its services, upgrading itself as a five star hotel with a new name - Grand Pokhara. Begnas Resort and dozens of other hotels in Lakeside in Pokhara had also resumed operations. Likewise, more than two dozen hotels and restaurants had upgraded their standard and capacity.
“I invested hundreds of thousand of rupees and added rooms to tap the increased bookings,” said Biplav Paudel, promoter of Barahi Hotel. “But the continuous cancellation of bookings has cut down all the zeal and expectations I had,” he added.
Barahi increased the number of rooms to 32 from 24. He had added eight deluxe rooms considering the business of this season. Officials of the association said, tourist class hotels in Pokhara had added 200 rooms targeting tourists for the season. “Sadly, more than 50 percent of my customers have cancelled their bookings,” said Tika Paudel, promoter of Shikhar Hotel.
Manager of Fulbari Resort Maheshwor Raj Bhandari said that the number of tourist arrivals in Pokhara has not increased, even though Nepal Tourist Board's (NTB's) data shows a good growth in tourist arrival figures. For October, Fulbari had received bookings for over 200 rooms. “But, we are operating with just a 45 percent occupancy,” said Bhandari. He elaborated that the chances of witnessing a sound growth in tourist arrivals were slim in the days ahead mainly due to the recent political upheavals. Acording to an estimate, 25 percent of the tourists that land in Kathmandu travel to Pokhara.
The entrepreneurs said as the American and Japanese embassies had came up with more stringent travel advisories after the recent bomb blasts in the capital, the tourists had deterred traveling to Nepal.
Major hotels like Shangli-la, Fulbari, Fishtail, and Barahi had 70 percent booking a month earlier. “If the booking was growing coninioulsy, tourists would have had a hard time finding rooms here,” said Paudel. “But, things went otherwise.”
eKantipur.com, 8-Oct-07
BY KUL CHANDRA NEUPANE
Although travel trade entrepreneurs witnessed a record number of bookings from tourists this season, they lamented that the latest political uncertainty is badly affecting the actual turn out of visiotrs.
According to information provided by local hoteliers, some 50 percent of the bookings have been cancelled following the recent explosions in Kathmandu, frequent bandas, strikes and political uncertianty.
Most of the cancellations have been recorded for the month of October, and entrepreneurs said the cancellation of Constituent Assembly election could make the situation unsatifactory in November and December as well.
This is the season when Pokhara welcomes the maximum number of European and Japanese tourists.
“We had actually been over booked. If the tourist turn-out had equalled what had been booked, Pokhara would have found it difficult handle them all,” said Raj Kumar KC, manager at Shangrila Village Resort. Talking to the Post, he said that the resort had received 30 percent more booking requests than its total capacity for October. However, the actual occupancy barely stands at about 60 percent now.
Office bearers of the Regional Hotel Association said that hotels in Pokhara had received overwhelming booking requests this season compared to the last five years. The record bookings had even spurred new investment in the tourism sector.
Entrepreneurs had rennovated their service units for the first time in five years while hoteliers that had pulled down shutters had bounced back to the business.
Blue Bird had recently resumed its services, upgrading itself as a five star hotel with a new name - Grand Pokhara. Begnas Resort and dozens of other hotels in Lakeside in Pokhara had also resumed operations. Likewise, more than two dozen hotels and restaurants had upgraded their standard and capacity.
“I invested hundreds of thousand of rupees and added rooms to tap the increased bookings,” said Biplav Paudel, promoter of Barahi Hotel. “But the continuous cancellation of bookings has cut down all the zeal and expectations I had,” he added.
Barahi increased the number of rooms to 32 from 24. He had added eight deluxe rooms considering the business of this season. Officials of the association said, tourist class hotels in Pokhara had added 200 rooms targeting tourists for the season. “Sadly, more than 50 percent of my customers have cancelled their bookings,” said Tika Paudel, promoter of Shikhar Hotel.
Manager of Fulbari Resort Maheshwor Raj Bhandari said that the number of tourist arrivals in Pokhara has not increased, even though Nepal Tourist Board's (NTB's) data shows a good growth in tourist arrival figures. For October, Fulbari had received bookings for over 200 rooms. “But, we are operating with just a 45 percent occupancy,” said Bhandari. He elaborated that the chances of witnessing a sound growth in tourist arrivals were slim in the days ahead mainly due to the recent political upheavals. Acording to an estimate, 25 percent of the tourists that land in Kathmandu travel to Pokhara.
The entrepreneurs said as the American and Japanese embassies had came up with more stringent travel advisories after the recent bomb blasts in the capital, the tourists had deterred traveling to Nepal.
Major hotels like Shangli-la, Fulbari, Fishtail, and Barahi had 70 percent booking a month earlier. “If the booking was growing coninioulsy, tourists would have had a hard time finding rooms here,” said Paudel. “But, things went otherwise.”
Banda continues to paralyze east tarai
Banda continues to paralyze east tarai
eKantipur.com, 8-Oct-07
The indefinite banda called by various groups on the threshold of Dashain festival paralyzed normal life in the eastern part of the country. People have been facing more hardship as the local administration clamped curfew to control the situation from deteriorating after the fierce scuffle between the protestors and police.
Federal Limbuban State Council, Khumbuwan National Front, Federal Republic Front, Tamang Saling Autonomous State, Madhesi People's Rights Forum (MPRF) led by Kishwor Kumar Biswas among others called the indefinite strike demanding proportional electoral system, declaration of republic from the interim parliament, among other demands.
The strike mostly affected daily-wage workers, farmers, patients and consumers. There have been the short supplies of LP Gas and petroleum products, milk and vegetables in the areas.
Biratnagar dairy distribution project stopped to produce milk and ghee at Biratnagar recently.
In Saptari, patients are deprived of treatment in time and there is the shortage of medicine. Four persons died in the district due to the outbreak of diarrhea.
Meanwhile, farmers producing milk and vegetables in Dhankuta are affected due to the closure of transportation. Similarly, our correspondent from Sunsari reported that the daily-wage workers are living hard and unable to arrange essential goods for the coming festivals.
Meanwhile, Kishwor Kumar Bishwas faction of MPRF called off strike for three days, on Monday. Bishwas informed that they would again launch the banda after three days. Likewise, Limbuban-Khumbuban Federal Loktantrik National Forum on Monday decided to call off their strike for three days. "We have not withdrawn the protest because we are tired but we took the decision as per the request of public," said forum's chairman Kamal Chharhang.
Curfew affects life in Damak
Locals in Jhapa district have been facing difficulties due to the continuation of curfew imposed by the local administration. People at Maidhara are compelled to excrete inside their houses due to the curfew for the last three days. The locals are terrorized now after security force killed a youth on Sunday. People in the area do not have toilets inside their poorly built huts. One has to go to the nearby forest to answer nature's calls. Rights activist KP Subedi said the people are facing such difficulties for the last three days.
eKantipur.com, 8-Oct-07
The indefinite banda called by various groups on the threshold of Dashain festival paralyzed normal life in the eastern part of the country. People have been facing more hardship as the local administration clamped curfew to control the situation from deteriorating after the fierce scuffle between the protestors and police.
Federal Limbuban State Council, Khumbuwan National Front, Federal Republic Front, Tamang Saling Autonomous State, Madhesi People's Rights Forum (MPRF) led by Kishwor Kumar Biswas among others called the indefinite strike demanding proportional electoral system, declaration of republic from the interim parliament, among other demands.
The strike mostly affected daily-wage workers, farmers, patients and consumers. There have been the short supplies of LP Gas and petroleum products, milk and vegetables in the areas.
Biratnagar dairy distribution project stopped to produce milk and ghee at Biratnagar recently.
In Saptari, patients are deprived of treatment in time and there is the shortage of medicine. Four persons died in the district due to the outbreak of diarrhea.
Meanwhile, farmers producing milk and vegetables in Dhankuta are affected due to the closure of transportation. Similarly, our correspondent from Sunsari reported that the daily-wage workers are living hard and unable to arrange essential goods for the coming festivals.
Meanwhile, Kishwor Kumar Bishwas faction of MPRF called off strike for three days, on Monday. Bishwas informed that they would again launch the banda after three days. Likewise, Limbuban-Khumbuban Federal Loktantrik National Forum on Monday decided to call off their strike for three days. "We have not withdrawn the protest because we are tired but we took the decision as per the request of public," said forum's chairman Kamal Chharhang.
Curfew affects life in Damak
Locals in Jhapa district have been facing difficulties due to the continuation of curfew imposed by the local administration. People at Maidhara are compelled to excrete inside their houses due to the curfew for the last three days. The locals are terrorized now after security force killed a youth on Sunday. People in the area do not have toilets inside their poorly built huts. One has to go to the nearby forest to answer nature's calls. Rights activist KP Subedi said the people are facing such difficulties for the last three days.
Monday, October 08, 2007
World class animation, visual studio in offing
World class animation, visual studio in offing
ArthaExpress, 7-Oct-07
A Memorandum of Understanding (MoU) was signed today between Pink Slip Productions, a company based in California and run by a former Disney artist and executive; KuKri Ventures Inc, a USA based investment company; Mercantile, the largest domestic IT company and Transcube International Pvt Ltd, a computer graphics and animation company, to set up a world class animation and visual effects (VFX) studio in Kathmandu soon.
The new company, which will be called Incessant Rain Animation Studios Pvt Ltd, will start recruiting immediately and plans to come into production by the first quarter of 2008.
“I have been keeping an eye out on young Nepali graphic artists for a few years and feel that now is the time to start something here to promote this talent pool,” Kiran Joshi of Pink Slip
Productions, a veteran at Walt Disney Feature Animation involved in the production of classics like The Lion King, Beauty and the Beast, Aladdin, The Hunchback of Notre Dame and other feature animated films, says.
Sanjib Raj Bhandari of Mercantile says that the international market for VFX and animation is growing at a rapid pace and a state-of-the-art VFX and animation studio will be able to tap this market.
“We feel that with the technical and creative assistance of experts from the US, we will easily be able to meet the quality expectations of the international market. We are excited to be part of this team and see a very bright future for Nepali graphic artists and animators,” Suyogya Tuladhar of Transcube International Pvt Ltd, which operates a 25-person graphics in Kathmandu, says.
Incessant Rain Animation Studios Pvt Ltd plans to start operations with a team of about 40 and expand to a 100 within a year.
ArthaExpress, 7-Oct-07
A Memorandum of Understanding (MoU) was signed today between Pink Slip Productions, a company based in California and run by a former Disney artist and executive; KuKri Ventures Inc, a USA based investment company; Mercantile, the largest domestic IT company and Transcube International Pvt Ltd, a computer graphics and animation company, to set up a world class animation and visual effects (VFX) studio in Kathmandu soon.
The new company, which will be called Incessant Rain Animation Studios Pvt Ltd, will start recruiting immediately and plans to come into production by the first quarter of 2008.
“I have been keeping an eye out on young Nepali graphic artists for a few years and feel that now is the time to start something here to promote this talent pool,” Kiran Joshi of Pink Slip
Productions, a veteran at Walt Disney Feature Animation involved in the production of classics like The Lion King, Beauty and the Beast, Aladdin, The Hunchback of Notre Dame and other feature animated films, says.
Sanjib Raj Bhandari of Mercantile says that the international market for VFX and animation is growing at a rapid pace and a state-of-the-art VFX and animation studio will be able to tap this market.
“We feel that with the technical and creative assistance of experts from the US, we will easily be able to meet the quality expectations of the international market. We are excited to be part of this team and see a very bright future for Nepali graphic artists and animators,” Suyogya Tuladhar of Transcube International Pvt Ltd, which operates a 25-person graphics in Kathmandu, says.
Incessant Rain Animation Studios Pvt Ltd plans to start operations with a team of about 40 and expand to a 100 within a year.
Rs. 765m to be spent in Melamchi this year
Rs. 765m to be spent in Melamchi this year
ArthaExpress, 6-Oct-07
The Melamchi Water Development Committee (MWDC) would spend Rs. 765 million this year to accomplish Melamchi Drinking Water Supply Project (MDWSP), an official at MWDC said.
The MWDC is a government body which operates MDWSP. Talking to media persons, Hariram Koirala, the executive director of the MWDC informed that the pre-qualification has been done for the tunnel construction and the rest process was going on.
According to him, the handover of the Nepal Water Supply Corporation would take some more months as the new provision has allowed the government to take time till January and the handover of the institution from the government to semi-government body will naturally take some time.
Koirala said that the project itself has completed only 18 per cent of the total project, however, in practice, it has made landmark progress in the project´s development.
The sum will be spent in road constructions, social uplift programs, environment management programs and social and environmental monitoring.
MDWSP is Rs 33.9-billion project that plans to bring a total of 170 million liters of water per day in the capital from the Valley of Melamchi after constructing a 26.5 km tunnel. The committee has expected that the project would complete by 2011.
ArthaExpress, 6-Oct-07
The Melamchi Water Development Committee (MWDC) would spend Rs. 765 million this year to accomplish Melamchi Drinking Water Supply Project (MDWSP), an official at MWDC said.
The MWDC is a government body which operates MDWSP. Talking to media persons, Hariram Koirala, the executive director of the MWDC informed that the pre-qualification has been done for the tunnel construction and the rest process was going on.
According to him, the handover of the Nepal Water Supply Corporation would take some more months as the new provision has allowed the government to take time till January and the handover of the institution from the government to semi-government body will naturally take some time.
Koirala said that the project itself has completed only 18 per cent of the total project, however, in practice, it has made landmark progress in the project´s development.
The sum will be spent in road constructions, social uplift programs, environment management programs and social and environmental monitoring.
MDWSP is Rs 33.9-billion project that plans to bring a total of 170 million liters of water per day in the capital from the Valley of Melamchi after constructing a 26.5 km tunnel. The committee has expected that the project would complete by 2011.
Sunday, October 07, 2007
Roundup of Economic & Business News (Oct 1-Oct 6)
Oct 1
WB agrees Rs 6.5b grant to fight poverty (ekantipur.com)
Restriction on edible oil import (ekantipur.com)
Nepali products to be showcased in Beijing (ekantipur.com)
Revenue collection up by 15.4 pc (ekantipur.com)
Political stability key to banking sectors’ growth: Bamjan (ArthaExpress.com)
JCB plans to capture more market share in Nepal (ArthaExpress.com)
Cheap imports hit Nepali poultry industry hard (ArthaExpress.com)
India ‘okays’ 6,000 air seats a week (ArthaExpress.com)
Restriction on edible oil import (ArthaExpress.com)
Oct 2
Bus bookings for Dashain low (ekantipur.com)
More tourists visiting Annapurna circuit (ekantipur.com)
Petrol supply will be normal in a week: NOC (ekantipur.com)
Experts finalise SAARC Development Fund charter (ArthaExpress.com)
Oct 3
Overseas job seekers up by 9.5pc (ekantipur.com)
More new restaurants opening in Sauraha (ekantipur.com)
Number of visitors to Nepal by air sees a healthy growth (Nepalnews.com)
Nepali embassy in Doha moves against ill-treatment of labourers (Nepalnews.com)
Strike hits eastern districts (Nepalnews.com)
Oct 4
Kantipur, Maoist unionists reach accord (ekantipur.com)
Maoists collect ‘tourism tax (ekantipur.com)
GPOBA signs US$ 5m grant agreement (ekantipur.com)
Tourist arrivals up by 27 percent in September (Nepalnews.com)
WB to fund biogas plants in rural Nepal (Nepalnews.com)
Kumari Bank extends service in the UK (Nepalnews.com)
Oct 5
Bandas grip east tarai (ekantipur.com)
Air tickets sold out for Dashain (ekantipur.com)
Garment exports plunge (ekantipur.com)
Pokhara Noodles closed down, Himalremit launched in UK (ekantipur.com)
Oct 6
Consumer goods sales dwindling (ekantipur.com)
Nepal, Bangladesh trade talks on (ekantipur.com)
Sunsari workers to defy strikes (ekantipur.com)
Weekly share update : Nepse continues to rise (ArthaExpress.com)
Tourist arrivals via Belahiya increase (ArthaExpress.com)
SEBON gears up to protect investors’ rights (ArthaExpress.com)
WB agrees Rs 6.5b grant to fight poverty (ekantipur.com)
Restriction on edible oil import (ekantipur.com)
Nepali products to be showcased in Beijing (ekantipur.com)
Revenue collection up by 15.4 pc (ekantipur.com)
Political stability key to banking sectors’ growth: Bamjan (ArthaExpress.com)
JCB plans to capture more market share in Nepal (ArthaExpress.com)
Cheap imports hit Nepali poultry industry hard (ArthaExpress.com)
India ‘okays’ 6,000 air seats a week (ArthaExpress.com)
Restriction on edible oil import (ArthaExpress.com)
Oct 2
Bus bookings for Dashain low (ekantipur.com)
More tourists visiting Annapurna circuit (ekantipur.com)
Petrol supply will be normal in a week: NOC (ekantipur.com)
Experts finalise SAARC Development Fund charter (ArthaExpress.com)
Oct 3
Overseas job seekers up by 9.5pc (ekantipur.com)
More new restaurants opening in Sauraha (ekantipur.com)
Number of visitors to Nepal by air sees a healthy growth (Nepalnews.com)
Nepali embassy in Doha moves against ill-treatment of labourers (Nepalnews.com)
Strike hits eastern districts (Nepalnews.com)
Oct 4
Kantipur, Maoist unionists reach accord (ekantipur.com)
Maoists collect ‘tourism tax (ekantipur.com)
GPOBA signs US$ 5m grant agreement (ekantipur.com)
Tourist arrivals up by 27 percent in September (Nepalnews.com)
WB to fund biogas plants in rural Nepal (Nepalnews.com)
Kumari Bank extends service in the UK (Nepalnews.com)
Oct 5
Bandas grip east tarai (ekantipur.com)
Air tickets sold out for Dashain (ekantipur.com)
Garment exports plunge (ekantipur.com)
Pokhara Noodles closed down, Himalremit launched in UK (ekantipur.com)
Oct 6
Consumer goods sales dwindling (ekantipur.com)
Nepal, Bangladesh trade talks on (ekantipur.com)
Sunsari workers to defy strikes (ekantipur.com)
Weekly share update : Nepse continues to rise (ArthaExpress.com)
Tourist arrivals via Belahiya increase (ArthaExpress.com)
SEBON gears up to protect investors’ rights (ArthaExpress.com)
SEBON gears up to protect investors’ rights
SEBON gears up to protect investors’ rights
ArthaExpress, 6-Oct-07
Securities Board of Nepal (SEBON) was established on June 7, 1993 as an apex regulating body of securities markets. Though its major responsibility is to regulate stock market under the Securities Exchange Act-2006, the board has been passive in the past. Current Bull Run in the Nepse floor has, however, forced the board to come to the forefront to protect investors’ interest.
But Nepali investors are very ill-equipped with information of the companies on which they are betting their hard-earned money. “For a real growth of stock market, investors must be strong and have enough information,” says Dr Chiranjibi Nepal, chairman of Securities Board of Nepal (SEBON), adding that stock market is a mirror that reflects real economic situation of a country. “But the current Bull Run in Nepse and Nepal’s economic growth do not go hand in hand,” he adds.
SEBON also has a responsibility of supervising and monitoring the functions and activities of stock exchange. Not only that SEBON can inspect whether or not stock exchange is executing its functions and their activities are in accordance with the Securities Act -2006. It can supervise and monitor the functions and activities of securities-dealers as well.
There are around 0.8 million investors and the board has to safeguard their interest. “SEBON is committed to investors’ rights,” Nepal adds. “To protect investors’ right, we are planning awareness programmes. Regular and easy information dissimination and capital market strengthening are on our cards,” informs the newly appointed chief of the regulatory body. SEBON can make necessary arrangements to prevent inside trading or any other offences relating to transactions in securities in order to protect the interest of investors in securities.
As there are only 23 brokers, currently and the market has grown exponentially in the last one year, most of the brokers are accused of not entertaining small investors. “Proposal to increase the number of brokers is at the final stage. Once finance ministry approves the proposal, we will invite applications for the new brokers, most probably before Dashain holiday,” he says adding that the Brokers’ code of conduct — to regularise the transactions and make the brokers more efficient — is also on the final stage.
“SEBON is gearing up with all its resources to help the capital market grow soundly.” Nepal says.
ArthaExpress, 6-Oct-07
Securities Board of Nepal (SEBON) was established on June 7, 1993 as an apex regulating body of securities markets. Though its major responsibility is to regulate stock market under the Securities Exchange Act-2006, the board has been passive in the past. Current Bull Run in the Nepse floor has, however, forced the board to come to the forefront to protect investors’ interest.
But Nepali investors are very ill-equipped with information of the companies on which they are betting their hard-earned money. “For a real growth of stock market, investors must be strong and have enough information,” says Dr Chiranjibi Nepal, chairman of Securities Board of Nepal (SEBON), adding that stock market is a mirror that reflects real economic situation of a country. “But the current Bull Run in Nepse and Nepal’s economic growth do not go hand in hand,” he adds.
SEBON also has a responsibility of supervising and monitoring the functions and activities of stock exchange. Not only that SEBON can inspect whether or not stock exchange is executing its functions and their activities are in accordance with the Securities Act -2006. It can supervise and monitor the functions and activities of securities-dealers as well.
There are around 0.8 million investors and the board has to safeguard their interest. “SEBON is committed to investors’ rights,” Nepal adds. “To protect investors’ right, we are planning awareness programmes. Regular and easy information dissimination and capital market strengthening are on our cards,” informs the newly appointed chief of the regulatory body. SEBON can make necessary arrangements to prevent inside trading or any other offences relating to transactions in securities in order to protect the interest of investors in securities.
As there are only 23 brokers, currently and the market has grown exponentially in the last one year, most of the brokers are accused of not entertaining small investors. “Proposal to increase the number of brokers is at the final stage. Once finance ministry approves the proposal, we will invite applications for the new brokers, most probably before Dashain holiday,” he says adding that the Brokers’ code of conduct — to regularise the transactions and make the brokers more efficient — is also on the final stage.
“SEBON is gearing up with all its resources to help the capital market grow soundly.” Nepal says.
Weekly share update : Nepse continues to rise
Weekly share update : Nepse continues to rise
ArthaExpress, 6-Oct-07
The Bull Run continued at Nepal Stock Exchange (Nepse) this week, too, as the share trading posted yet another record by closing at an all time high of 899.42 points from the opening 885.50 points on Sunday.
As the rush of gullible investors continued at the country’s sole secondary market, the Nepse index this week posted a growth of 13.92 points.
Market watchers claim that repeated warnings and pre-cautionary notice of Securities Board of Nepal (SEBON) has slowed down the Bull Run in the market, however it is still picking up marginally.
“Increasing political uncertainty has also not affected share market giving strong ground for accusation of foul play and inside trading,” market pundits say adding that stock market worldwide is very sensitive but our stock market is behaving ‘abnormally’.
Given the size of our economy and almost no real sectors’ involvement in the Nepse mean growth doesnot reflect national economy. And the experts recently are questioning the source of investment also.
The weekly turnover for this week stands at Rs 747.1 million with 9,35,119 unit shares having been traded through 2230 transactions. Out of the total trading, the companies under ‘A’ category comprised of 53.48 per cent or Rs 399.6 million.
As usual financial institutions including commercial banks and development banks and insurance companies were the market leaders, while the firms under hydropower and hotel group became the loser this week.
The commercial banks group, which is the largest scrip by volume at the Nepse floor, posted a growth of 10.20 points this week. The group’s index climbed up to 1005.72 points from the opening 995.52 points.
The development banks group posted a whopping growth of 117.43 points and closed at 869.66 points. The finance and insurance groups, too, managed growth as their indices closed at 593.17 points and 698.16 points respectively. Earlier, the finance group began its trading at 550.06 points, while the insurance group started at 690.65 points.
The hydropower group, which has been one of the aggressive performers earlier, however, lost 16.58 points this week to close at 1373.75 points. The group began its trading at 1390.33 points.
Lumbini Bank Ltd outshone all others in terms of monetary value for the week, as the bank’s shares worth Rs 243.74 million exchanged hands at the floor and it also stood first in terms of the largest number of shares as its 4,20,300 unit shares traded during the week. Nepal Bangladesh Bank saw the highest number of transactions at 169, this week.
Among the top 10 performers for the week nine are commercial banks and one is a development bank. The floor remained open for five days.
According to the monthly data, in the month of Bhadra, Nabil Bank Ltd outshone all others in terms of market capitalisation. Nabil Bank’s market capitalisation has touched Rs 29.45 billion, which is the record in itself. Similarly, Standard Chartered Bank comes second in terms of market capitalisation with Rs 28.96 billion in Bhadra.
ArthaExpress, 6-Oct-07
The Bull Run continued at Nepal Stock Exchange (Nepse) this week, too, as the share trading posted yet another record by closing at an all time high of 899.42 points from the opening 885.50 points on Sunday.
As the rush of gullible investors continued at the country’s sole secondary market, the Nepse index this week posted a growth of 13.92 points.
Market watchers claim that repeated warnings and pre-cautionary notice of Securities Board of Nepal (SEBON) has slowed down the Bull Run in the market, however it is still picking up marginally.
“Increasing political uncertainty has also not affected share market giving strong ground for accusation of foul play and inside trading,” market pundits say adding that stock market worldwide is very sensitive but our stock market is behaving ‘abnormally’.
Given the size of our economy and almost no real sectors’ involvement in the Nepse mean growth doesnot reflect national economy. And the experts recently are questioning the source of investment also.
The weekly turnover for this week stands at Rs 747.1 million with 9,35,119 unit shares having been traded through 2230 transactions. Out of the total trading, the companies under ‘A’ category comprised of 53.48 per cent or Rs 399.6 million.
As usual financial institutions including commercial banks and development banks and insurance companies were the market leaders, while the firms under hydropower and hotel group became the loser this week.
The commercial banks group, which is the largest scrip by volume at the Nepse floor, posted a growth of 10.20 points this week. The group’s index climbed up to 1005.72 points from the opening 995.52 points.
The development banks group posted a whopping growth of 117.43 points and closed at 869.66 points. The finance and insurance groups, too, managed growth as their indices closed at 593.17 points and 698.16 points respectively. Earlier, the finance group began its trading at 550.06 points, while the insurance group started at 690.65 points.
The hydropower group, which has been one of the aggressive performers earlier, however, lost 16.58 points this week to close at 1373.75 points. The group began its trading at 1390.33 points.
Lumbini Bank Ltd outshone all others in terms of monetary value for the week, as the bank’s shares worth Rs 243.74 million exchanged hands at the floor and it also stood first in terms of the largest number of shares as its 4,20,300 unit shares traded during the week. Nepal Bangladesh Bank saw the highest number of transactions at 169, this week.
Among the top 10 performers for the week nine are commercial banks and one is a development bank. The floor remained open for five days.
According to the monthly data, in the month of Bhadra, Nabil Bank Ltd outshone all others in terms of market capitalisation. Nabil Bank’s market capitalisation has touched Rs 29.45 billion, which is the record in itself. Similarly, Standard Chartered Bank comes second in terms of market capitalisation with Rs 28.96 billion in Bhadra.
Consumer goods sales dwindling
Consumer goods sales dwindling
eKantipur.com, 6-Oct-07
BY PRABHAKAR GHIMIRE
Despite Nepal's national festival Dashain being around the corner, major departmental stores and wholesale outlets are getting increasingly worried. Sales have not picked up, and shoppers are not flocking as they used to, they say.
Traders say volume of business is nowhere close to what it was at this time in previous years mostly as the customers outside the Kathmandu Valley have dwindled owing to regular and protracted disruptions in vehicular movements, especially in the tarai region. They say outside traders make up a considerable contribution in total sales.
“Sales have dropped in the range of 25 to 30 percent compared to last year's Dashain,” said Rijendra Sthapit, purchase manager of Bluebird Department Store, which ranks among the oldest and leading retailers in the capital. “The flow of customers seems very thin this year with the numbers falling to 200 a day, from 300 to 400.”
The turnover at the Kathmandu Mall, a leading shopping center, has also depleted by 50 percent, said shopkeepers. The Mall houses more than 300 shops that showcase different varieties of consumer goods.
"Though the Dashain is just one week away, movement of customers falls far short of expectations" said Sameer Udhin Shekh, vice-president of Trade Association of Kathmandu Mall.
"Prolonged political instability and unrest in the tarai region have disrupted the movement of customers, mainly from other districts. And this has led to a massive drop in sales,” Durga Bahadur Shrestha, president of Trans-Himalayan Traders Association, told the Post.
He said the entire wholesale market has seen a decline of 30 to 40 percent in sales compared to last year. “As a result, the stock of goods meant for the Dashain festival is lying idle in stores,” he said.
Besides low sales, disturbance in arrival of goods that overseas traders ordered from third countries have them worried. They said the delay may result in short-supply of some commodities during this festive season.
"Around 500 containers are stranded near Kolkata as a vital bridge on the main route used for ferrying imported goods to Nepal collapsed last month and has not been repaired yet," said Ramesh Kumar Khetan, general secretary of Overseas Traders Association (OTA). “What is more disturbing is that the level of demand of goods in the market has nosedived by up to 50 percent.”
eKantipur.com, 6-Oct-07
BY PRABHAKAR GHIMIRE
Despite Nepal's national festival Dashain being around the corner, major departmental stores and wholesale outlets are getting increasingly worried. Sales have not picked up, and shoppers are not flocking as they used to, they say.
Traders say volume of business is nowhere close to what it was at this time in previous years mostly as the customers outside the Kathmandu Valley have dwindled owing to regular and protracted disruptions in vehicular movements, especially in the tarai region. They say outside traders make up a considerable contribution in total sales.
“Sales have dropped in the range of 25 to 30 percent compared to last year's Dashain,” said Rijendra Sthapit, purchase manager of Bluebird Department Store, which ranks among the oldest and leading retailers in the capital. “The flow of customers seems very thin this year with the numbers falling to 200 a day, from 300 to 400.”
The turnover at the Kathmandu Mall, a leading shopping center, has also depleted by 50 percent, said shopkeepers. The Mall houses more than 300 shops that showcase different varieties of consumer goods.
"Though the Dashain is just one week away, movement of customers falls far short of expectations" said Sameer Udhin Shekh, vice-president of Trade Association of Kathmandu Mall.
"Prolonged political instability and unrest in the tarai region have disrupted the movement of customers, mainly from other districts. And this has led to a massive drop in sales,” Durga Bahadur Shrestha, president of Trans-Himalayan Traders Association, told the Post.
He said the entire wholesale market has seen a decline of 30 to 40 percent in sales compared to last year. “As a result, the stock of goods meant for the Dashain festival is lying idle in stores,” he said.
Besides low sales, disturbance in arrival of goods that overseas traders ordered from third countries have them worried. They said the delay may result in short-supply of some commodities during this festive season.
"Around 500 containers are stranded near Kolkata as a vital bridge on the main route used for ferrying imported goods to Nepal collapsed last month and has not been repaired yet," said Ramesh Kumar Khetan, general secretary of Overseas Traders Association (OTA). “What is more disturbing is that the level of demand of goods in the market has nosedived by up to 50 percent.”
Saturday, October 06, 2007
Business and caste in India
Business and caste in India
With reservations
The, Economist 4-Oct-2007
India's government is threatening to make companies hire more low-caste workers
A 23-YEAR-OLD dressed in white pyjama trousers and a black over-shirt represents two worlds in India that know almost nothing of each other. One is fast growing, but tiny: the world of business. Strolling through the Californian-style campus in Bangalore that serves as the headquarters of Infosys, a computer-services company, she grins and declares herself glad. Her brother, she adds shyly, is so proud that she is an “Infoscion”.
He is in the rural world where 70% of Indians reside: cultivating the family plot in Bannahalli Hundi, a village near Mysore. Life is less delightful there. Half the 4,000 population are brahmins, of the Hindu priestly caste. The rest, including the software engineer and her family, are dalits, members of a “scheduled caste” that was once considered untouchable.
Sixty years on this is still the case in Bannahalli Hundi, says the young woman, who does not want to be named. She has never entered the house of a brahmin neighbour. When a dalit was recently hired to cook at the village school, brahmins withdrew their children. Has there been no weakening of caste strictures in her lifetime? “I have not seen it,” she says.
The tale is in startling contrast to Infosys's modernity, and she is embarrassed by it. But it partly explains how she came to be hired by a company that is considered to be one of India's best. She is the beneficiary of a charitable training scheme for dalit university-leavers that Infosys launched last year.
In collaboration with the elite Bangalore-based International Institute of Information Technology (IIIT), Infosys is providing special training to low-caste engineering graduates who have failed to get a job in its industry. The training, which lasts seven months, does not promise employment. But of the 89 who completed the first course in May, all but four have found jobs. Infosys hired 17.
The charity was born of a threat. India's Congress-led government has told companies to hire more dalits and members of tribal communities. Together these groups represent around a quarter of India's population and half of its poor. Manmohan Singh, the prime minister, has given warning that “strong measures” will be taken if companies do not comply. Many interpret that to mean the government will impose caste-based hiring quotas.
Quotas already apply in education and government, where since 1950 22.5% of university places and government jobs have been “reserved” for dalits and tribal people. In addition, since 1993, 27% of government jobs have been reserved for members of the Other Backward Classes (OBCs)—castes only slightly higher up the Hindu hierarchy.
Promoting the wretched
This is not enough for supporters of reservations. Since the introduction of liberal reforms in the early 1990s, public-sector hiring has slowed and businesses have boomed. Extending reservations to companies, they argue, would therefore safeguard an existing policy of promoting the Hindu wretched. It would almost certainly require changes to the constitution. But low-caste politicians are delighted by the prospect, so it could happen.
The chief minister of Uttar Pradesh, a dalit leader called Mayawati, has said 30% of company jobs should be reserved for dalits, members of the OBCs and high-caste and Muslim poor. Chandra Bhan Prasad, a dalit journalist, applauds this and argues that it would be in the interest of companies. “It is in the culture of dalits that they are least likely to change their employment because they are so loyal to their masters,” he says. It would also help them become a “new caste [sic] of consumers”.
Businessmen are unconvinced. Government, in both its intrusiveness and its incompetence, is a hindrance to them. Caste-based hiring quotas would be just another burden. People given a right to a job tend not to work very hard. So, in an effort to avert Mr Singh's threat, many companies and organisations that represent them are launching their own affirmative-action schemes.
The Confederation of Indian Industry has introduced a package of dalit-friendly measures, including scholarships for bright low-caste students. The Federation of Indian Chambers of Commerce and Industry plans to support entrepreneurs in India's poorest districts. Naukri.com, India's biggest online recruitment service, with over 10m subscribers, anticipates that companies will soon actively seek low-caste recruits. It has therefore started asking job-seekers to register their caste.
Basic training
Infosys's training scheme, as described by S. Sadagopan, the IIIT'S director, is a Pygmalion undertaking. Meeting the parents of his dalit students, he saw “almost an anger in their eyes”. For the first month the students were unresponsive. Their English was dismal. Mr Sadagopan felt compelled to introduce lessons in self-presentation, including table manners.
Matters improved. The course was based on Infosys's 16-week basic training, which 31,000 Indian graduates underwent last year. The low-caste lot scored similar marks and gained confidence. At a bonding session, filled with meditation and dancing, they wrote themselves a slogan: “As good as any, better than many”.
It is a moving story. But Mr Sadagopan's students were not all that deprived. In the words of three, now working for Infosys, they were “normal middle-class Indians”. A third of them were the sons and daughters of professionals. The worst had grades only a little below what Infosys routinely demands of its recruits. Almost all were from urban areas, where caste discrimination is rare.
One of them, Manjunath, says the only time he was ever reminded of his low caste was when he applied for a place at university. Had it not been reserved for him, he says, he might have worked a bit harder—and so joined Infosys without any special help. As for his colleague from Bannahalli Hundi, coming from one of the richer families in the village, she is its first female university graduate—of any caste.
The most that can be said for Infosys's programme—without devaluing Mr Sadagopan's efforts—is that it is a great opportunity for a tiny number of middle-class Indians, who happen also to be low-caste. The same would be true of caste-based reservations. This is because the percentage of India's workforce employed in the “organised” private sector (made up of firms that declare they have ten or more employees), where reservations might be applied, is also tiny: around 2%. And as far as anyone can tell (companies do not ask the caste of their employees), members of low castes are already well represented in low-skilled jobs there. Much of India's heavy industry, such as steelmaking, is located where the low-caste population is high. Tata Steel, which employs around 40,000 people in India, has its main operations in Jamshedpur, in the eastern “tribal belt”.
Membership of a caste, as of a guild or a church, provides businessmen with a useful network. In the informal economy, where banks fear to tread, caste bonds tend to be affirmed through business. The fact that most Indian companies are family-owned exaggerates this: to prevent wealth being diluted, it encourages marriages not only within the same caste, but also within the same family. A sugar baroness of south India's kamma caste, Rajshree Pathy, recently explained this practice to an Indian newspaper, the Business Standard: “The PSG family produces girls, the Lakshmi Mills family produces boys, they marry each other and live happily ever after.”
The modernisation of India's economy has brought more dynamic change. Among educated, urban Indians caste identity is fading. Inter-caste marriages are increasing. According to Jeevansathi.com, a matchmaking (or, as Indians say, “matrimonial”) website, 58% of its online matches involved inter-caste couples. Meanwhile, in rural India—where unions are not fixed online—intra-caste marriages remain the norm.
Business has to some degree been a laggard in this process. Caste bonds rooted in expediency, not tradition, allow businessmen to borrow and lend money with a degree of accountability, which helps to minimise risk. They are not an affirmation of a vocational hierarchy within the Hindu universe. Nonetheless, in north India, where business is to this day dominated by members of ancient trading castes, like marwaris (whose famous names include Birla, Bajaj and Mittal) and bania (Ambani), it can look pretty traditional.
Rites of passage
Harish Damodaran investigated the caste origins of many of India's industrialists in a forthcoming book*. He identified three main trends. The first, which he calls a “bazaar to factory” route, is the passage of hereditary traders into industry. In northern India, some castes' monopolies have discouraged them from leaving their traditionally prescribed employment. So members of north India's farming castes—for example, jats and yadavs—rarely own a sugar or flour mill.
The second trend, “office to factory”, describes a recent movement of well-educated high-caste Hindus, including brahmins, into business. Lacking capital, these sophisticates tended to enter the services sector, where start-up costs are relatively low. India's world-class computer-services industry, including companies like Infosys, is the result.
The third trajectory, “field to factory”, is the transition into the business world of members of India's middle and lower-peasant castes. This must be the path of India's dalits, too. But they have not trodden it yet: across India, Mr Damodaran could not find a significant dalit industrialist.
There is no strong evidence that companies discriminate against low-caste job applicants. Upper-class Indians, who tend also to be high-caste Hindus, can be disparaging about their low-caste compatriots. “Once a thicky, always a thicky,” is how a rich businessman describes Ms Mayawati. Yet this at least partly reflects the fact that low-caste Hindus tend also to be low class; and in India, as in many countries, class prejudice is profound.
There is, on the other hand, plenty of evidence that few able low-caste graduates are emerging from India's universities. Since it began registering the caste of its subscribers—almost by definition computer-literate and English-speaking—Naukri.com has added 38,000 young dalit and tribal job-seekers to its books. That represents 1% of the total who have registered in that time.
For reservationists, this confirms the need for quotas. Others interpret the facts differently: reservations don't seem to work. And statistics support this view. Reservations notwithstanding, low-caste Indians are getting less poor at almost the same rate as the general population. Between 1983 and 2004, their spending power increased by 26.7%, compared with 27.7% for the average Indian, according to the National Sample Survey Organisation, a government body.
Low-caste students struggle in schools without special help, which is rarely available. Their English—the language of India's middle class—tends to be poor. Many drop out. Up to half of university places reserved for low-caste students are left vacant. So, too, are many of the university posts reserved for low-caste teachers. Most Indians emerge from this system with an abysmal education. Low-caste Indians perhaps almost invariably do.
A measure of this fiasco can be found at the political-science department of one of India's prestigious post-graduate universities. Each year it chooses 50 students, from 1,500 applications, for its master's degree. Successful applicants will average no less than 55% in their undergraduate exams. Dalit applicants scrape in with as little as 30%. Nonetheless, practically every student will be awarded a first-class degree.
India is failing to equip its young, of whatever caste or religion, with the skills that its companies need. This is one of the biggest threats to sustaining high economic growth. India's outstanding computer-services companies—which will account for around a quarter of overall growth in the next few years—intend to hire over 1m engineering graduates in the next two years. It will be tough. To recruit 31,000 graduates last year, Infosys considered 1.3m applicants; only 65,000 passed a basic test. To address the skills shortage, the company is investing a whopping $450m in training. “We are building India's human resources,” says Mohandas Pai, Infosys's chief of human resources.
Alas, reservationists have other concerns. Caste politics are pervasive. On August 28th the Supreme Court struck down an effort by Andhra Pradesh's government to reserve 4% of government jobs and education places for poor Muslims. The court is meanwhile weighing a more dramatic measure announced by the government last year: to reserve 27% of university places for the OBCs. To placate irate students, many of them high-caste, the government promises to increase the number of university places accordingly. Education standards would no doubt fall further.
Even so, the policy may be unstoppable. Since reservations for the OBCs were introduced in the early 1990s the rise of political parties dedicated to these groups has been inexorable. So has the proliferation of the OBCs, to around 3,000 castes. They include millions who are not poor at all.
“A massive deliberate confusion” is how Surjit Bhalla, an economist at Oxus Investments, a hedge fund, characterises reservations for the OBCs. When they were awarded reservations, the OBCs were estimated to make up 53% of India's total population. More recent counting suggests they are only about one-third of the population, although their 27% reservation remains unchanged. Moreover, by most measures, the average OBC member is no poorer than the average Indian. “How can you discriminate against the average?” asks Mr Bhalla, despairingly.
There by mistake
And despair he may. Practically no politician dares speak out against this caste-based racket for fear of being labelled an apologist for the caste system. Rather like guests at the Hotel California, those that join the list never leave—even one or two castes that were allegedly included by mistake. The surpassing example is Tamil Nadu, which reserves a total of 69% of government jobs: 1% for tribal people, 18% for dalits, 30% for the OBCs and 20% for a subset of them—members of castes once categorised by British colonisers as “criminal tribes” and now known more delicately as “de-notified communities”.
There is little opposition to this policy in Tamil Nadu, for two reasons. It is one of India's more literate and prosperous states. And low-caste Hindus are unusually prominent in Tamil Nadu, which suggests to reservationists that the policy is working well. Textiles companies in Tirupur, a T-shirt hub, for example, are mostly owned by gounders, members of a peasant caste that is officially listed as an OBC.
One defender of the policy is N. Vasudevan, chief official of the Kafkaesque vision of bureaucratic hell that is the Backward Classes, Most Backward Classes and Minorities Welfare Department in Chennai, where workers languish behind mountains of never-opened files. Asked when it might end he replies: “When everyone becomes equal.”
There is an alternative view: that Tamil Nadu is more equal than most states not because it has lots of reservations but because, overall, it has been run less badly. It has therefore delivered above-average economic growth, from which low-caste Tamils have benefited.
In addition, low-caste businessmen in Tamil Nadu have had opportunities that have nothing to do with government policy. In contrast to north India, where commerce is dominated by members of a few business castes, south India's business community has been more open to members of non-business castes. According to Raman Mahadevan, a business historian, this is partly because members of the south's main trading caste, the chettiars, chose to concentrate their investments outside India during the 19th century, in Malaya and Singapore.
Partly as a result, little large-scale industry emerged in southern India until the 1930s. Around the same time, a popular movement against brahmins—especially lordly in the south—emboldened members of the lower and middle castes, including gounders, who were quick to convert their new assertiveness into business.
The Hindu caste system has never been rigid. Low-caste Hindus do not accept their lumpen position in the hierarchy. Indeed, like middle-class English families, they tend to cherish a myth of their former greatness. By imitating the habits of a more prestigious neighbour, in dress or ritual, some low castes have sneaked a rung or two up the ladder. More recently, in an effort to be classified as an OBC or a dalit caste, some middle-ranking castes have tried to climb a rung or two down.
Meanwhile, on the lowest rung of the ladder, dalit businessmen can be found operating in the informal economy, perhaps as small traders. They must be especially reliant on caste as a business network. But that reliance will change if they can expand into the organised sector. Where businessmen can gain access to credit without having to claim kinship, caste affiliations wither. As Mr Damodaran writes: “A kamma sugar magnate ultimately identifies his interests with other mill-owners and not with fellow kamma cane growers or workers.” And his business may flourish, unfettered.
* “India's New Capitalists: Caste, Business and Industry in a Modern Nation-State.” By Harish Damodaran. Permanent Black/Palgrave Macmillan.
With reservations
The, Economist 4-Oct-2007
India's government is threatening to make companies hire more low-caste workers
A 23-YEAR-OLD dressed in white pyjama trousers and a black over-shirt represents two worlds in India that know almost nothing of each other. One is fast growing, but tiny: the world of business. Strolling through the Californian-style campus in Bangalore that serves as the headquarters of Infosys, a computer-services company, she grins and declares herself glad. Her brother, she adds shyly, is so proud that she is an “Infoscion”.
He is in the rural world where 70% of Indians reside: cultivating the family plot in Bannahalli Hundi, a village near Mysore. Life is less delightful there. Half the 4,000 population are brahmins, of the Hindu priestly caste. The rest, including the software engineer and her family, are dalits, members of a “scheduled caste” that was once considered untouchable.
Sixty years on this is still the case in Bannahalli Hundi, says the young woman, who does not want to be named. She has never entered the house of a brahmin neighbour. When a dalit was recently hired to cook at the village school, brahmins withdrew their children. Has there been no weakening of caste strictures in her lifetime? “I have not seen it,” she says.
The tale is in startling contrast to Infosys's modernity, and she is embarrassed by it. But it partly explains how she came to be hired by a company that is considered to be one of India's best. She is the beneficiary of a charitable training scheme for dalit university-leavers that Infosys launched last year.
In collaboration with the elite Bangalore-based International Institute of Information Technology (IIIT), Infosys is providing special training to low-caste engineering graduates who have failed to get a job in its industry. The training, which lasts seven months, does not promise employment. But of the 89 who completed the first course in May, all but four have found jobs. Infosys hired 17.
The charity was born of a threat. India's Congress-led government has told companies to hire more dalits and members of tribal communities. Together these groups represent around a quarter of India's population and half of its poor. Manmohan Singh, the prime minister, has given warning that “strong measures” will be taken if companies do not comply. Many interpret that to mean the government will impose caste-based hiring quotas.
Quotas already apply in education and government, where since 1950 22.5% of university places and government jobs have been “reserved” for dalits and tribal people. In addition, since 1993, 27% of government jobs have been reserved for members of the Other Backward Classes (OBCs)—castes only slightly higher up the Hindu hierarchy.
Promoting the wretched
This is not enough for supporters of reservations. Since the introduction of liberal reforms in the early 1990s, public-sector hiring has slowed and businesses have boomed. Extending reservations to companies, they argue, would therefore safeguard an existing policy of promoting the Hindu wretched. It would almost certainly require changes to the constitution. But low-caste politicians are delighted by the prospect, so it could happen.
The chief minister of Uttar Pradesh, a dalit leader called Mayawati, has said 30% of company jobs should be reserved for dalits, members of the OBCs and high-caste and Muslim poor. Chandra Bhan Prasad, a dalit journalist, applauds this and argues that it would be in the interest of companies. “It is in the culture of dalits that they are least likely to change their employment because they are so loyal to their masters,” he says. It would also help them become a “new caste [sic] of consumers”.
Businessmen are unconvinced. Government, in both its intrusiveness and its incompetence, is a hindrance to them. Caste-based hiring quotas would be just another burden. People given a right to a job tend not to work very hard. So, in an effort to avert Mr Singh's threat, many companies and organisations that represent them are launching their own affirmative-action schemes.
The Confederation of Indian Industry has introduced a package of dalit-friendly measures, including scholarships for bright low-caste students. The Federation of Indian Chambers of Commerce and Industry plans to support entrepreneurs in India's poorest districts. Naukri.com, India's biggest online recruitment service, with over 10m subscribers, anticipates that companies will soon actively seek low-caste recruits. It has therefore started asking job-seekers to register their caste.
Basic training
Infosys's training scheme, as described by S. Sadagopan, the IIIT'S director, is a Pygmalion undertaking. Meeting the parents of his dalit students, he saw “almost an anger in their eyes”. For the first month the students were unresponsive. Their English was dismal. Mr Sadagopan felt compelled to introduce lessons in self-presentation, including table manners.
Matters improved. The course was based on Infosys's 16-week basic training, which 31,000 Indian graduates underwent last year. The low-caste lot scored similar marks and gained confidence. At a bonding session, filled with meditation and dancing, they wrote themselves a slogan: “As good as any, better than many”.
It is a moving story. But Mr Sadagopan's students were not all that deprived. In the words of three, now working for Infosys, they were “normal middle-class Indians”. A third of them were the sons and daughters of professionals. The worst had grades only a little below what Infosys routinely demands of its recruits. Almost all were from urban areas, where caste discrimination is rare.
One of them, Manjunath, says the only time he was ever reminded of his low caste was when he applied for a place at university. Had it not been reserved for him, he says, he might have worked a bit harder—and so joined Infosys without any special help. As for his colleague from Bannahalli Hundi, coming from one of the richer families in the village, she is its first female university graduate—of any caste.
The most that can be said for Infosys's programme—without devaluing Mr Sadagopan's efforts—is that it is a great opportunity for a tiny number of middle-class Indians, who happen also to be low-caste. The same would be true of caste-based reservations. This is because the percentage of India's workforce employed in the “organised” private sector (made up of firms that declare they have ten or more employees), where reservations might be applied, is also tiny: around 2%. And as far as anyone can tell (companies do not ask the caste of their employees), members of low castes are already well represented in low-skilled jobs there. Much of India's heavy industry, such as steelmaking, is located where the low-caste population is high. Tata Steel, which employs around 40,000 people in India, has its main operations in Jamshedpur, in the eastern “tribal belt”.
Membership of a caste, as of a guild or a church, provides businessmen with a useful network. In the informal economy, where banks fear to tread, caste bonds tend to be affirmed through business. The fact that most Indian companies are family-owned exaggerates this: to prevent wealth being diluted, it encourages marriages not only within the same caste, but also within the same family. A sugar baroness of south India's kamma caste, Rajshree Pathy, recently explained this practice to an Indian newspaper, the Business Standard: “The PSG family produces girls, the Lakshmi Mills family produces boys, they marry each other and live happily ever after.”
The modernisation of India's economy has brought more dynamic change. Among educated, urban Indians caste identity is fading. Inter-caste marriages are increasing. According to Jeevansathi.com, a matchmaking (or, as Indians say, “matrimonial”) website, 58% of its online matches involved inter-caste couples. Meanwhile, in rural India—where unions are not fixed online—intra-caste marriages remain the norm.
Business has to some degree been a laggard in this process. Caste bonds rooted in expediency, not tradition, allow businessmen to borrow and lend money with a degree of accountability, which helps to minimise risk. They are not an affirmation of a vocational hierarchy within the Hindu universe. Nonetheless, in north India, where business is to this day dominated by members of ancient trading castes, like marwaris (whose famous names include Birla, Bajaj and Mittal) and bania (Ambani), it can look pretty traditional.
Rites of passage
Harish Damodaran investigated the caste origins of many of India's industrialists in a forthcoming book*. He identified three main trends. The first, which he calls a “bazaar to factory” route, is the passage of hereditary traders into industry. In northern India, some castes' monopolies have discouraged them from leaving their traditionally prescribed employment. So members of north India's farming castes—for example, jats and yadavs—rarely own a sugar or flour mill.
The second trend, “office to factory”, describes a recent movement of well-educated high-caste Hindus, including brahmins, into business. Lacking capital, these sophisticates tended to enter the services sector, where start-up costs are relatively low. India's world-class computer-services industry, including companies like Infosys, is the result.
The third trajectory, “field to factory”, is the transition into the business world of members of India's middle and lower-peasant castes. This must be the path of India's dalits, too. But they have not trodden it yet: across India, Mr Damodaran could not find a significant dalit industrialist.
There is no strong evidence that companies discriminate against low-caste job applicants. Upper-class Indians, who tend also to be high-caste Hindus, can be disparaging about their low-caste compatriots. “Once a thicky, always a thicky,” is how a rich businessman describes Ms Mayawati. Yet this at least partly reflects the fact that low-caste Hindus tend also to be low class; and in India, as in many countries, class prejudice is profound.
There is, on the other hand, plenty of evidence that few able low-caste graduates are emerging from India's universities. Since it began registering the caste of its subscribers—almost by definition computer-literate and English-speaking—Naukri.com has added 38,000 young dalit and tribal job-seekers to its books. That represents 1% of the total who have registered in that time.
For reservationists, this confirms the need for quotas. Others interpret the facts differently: reservations don't seem to work. And statistics support this view. Reservations notwithstanding, low-caste Indians are getting less poor at almost the same rate as the general population. Between 1983 and 2004, their spending power increased by 26.7%, compared with 27.7% for the average Indian, according to the National Sample Survey Organisation, a government body.
Low-caste students struggle in schools without special help, which is rarely available. Their English—the language of India's middle class—tends to be poor. Many drop out. Up to half of university places reserved for low-caste students are left vacant. So, too, are many of the university posts reserved for low-caste teachers. Most Indians emerge from this system with an abysmal education. Low-caste Indians perhaps almost invariably do.
A measure of this fiasco can be found at the political-science department of one of India's prestigious post-graduate universities. Each year it chooses 50 students, from 1,500 applications, for its master's degree. Successful applicants will average no less than 55% in their undergraduate exams. Dalit applicants scrape in with as little as 30%. Nonetheless, practically every student will be awarded a first-class degree.
India is failing to equip its young, of whatever caste or religion, with the skills that its companies need. This is one of the biggest threats to sustaining high economic growth. India's outstanding computer-services companies—which will account for around a quarter of overall growth in the next few years—intend to hire over 1m engineering graduates in the next two years. It will be tough. To recruit 31,000 graduates last year, Infosys considered 1.3m applicants; only 65,000 passed a basic test. To address the skills shortage, the company is investing a whopping $450m in training. “We are building India's human resources,” says Mohandas Pai, Infosys's chief of human resources.
Alas, reservationists have other concerns. Caste politics are pervasive. On August 28th the Supreme Court struck down an effort by Andhra Pradesh's government to reserve 4% of government jobs and education places for poor Muslims. The court is meanwhile weighing a more dramatic measure announced by the government last year: to reserve 27% of university places for the OBCs. To placate irate students, many of them high-caste, the government promises to increase the number of university places accordingly. Education standards would no doubt fall further.
Even so, the policy may be unstoppable. Since reservations for the OBCs were introduced in the early 1990s the rise of political parties dedicated to these groups has been inexorable. So has the proliferation of the OBCs, to around 3,000 castes. They include millions who are not poor at all.
“A massive deliberate confusion” is how Surjit Bhalla, an economist at Oxus Investments, a hedge fund, characterises reservations for the OBCs. When they were awarded reservations, the OBCs were estimated to make up 53% of India's total population. More recent counting suggests they are only about one-third of the population, although their 27% reservation remains unchanged. Moreover, by most measures, the average OBC member is no poorer than the average Indian. “How can you discriminate against the average?” asks Mr Bhalla, despairingly.
There by mistake
And despair he may. Practically no politician dares speak out against this caste-based racket for fear of being labelled an apologist for the caste system. Rather like guests at the Hotel California, those that join the list never leave—even one or two castes that were allegedly included by mistake. The surpassing example is Tamil Nadu, which reserves a total of 69% of government jobs: 1% for tribal people, 18% for dalits, 30% for the OBCs and 20% for a subset of them—members of castes once categorised by British colonisers as “criminal tribes” and now known more delicately as “de-notified communities”.
There is little opposition to this policy in Tamil Nadu, for two reasons. It is one of India's more literate and prosperous states. And low-caste Hindus are unusually prominent in Tamil Nadu, which suggests to reservationists that the policy is working well. Textiles companies in Tirupur, a T-shirt hub, for example, are mostly owned by gounders, members of a peasant caste that is officially listed as an OBC.
One defender of the policy is N. Vasudevan, chief official of the Kafkaesque vision of bureaucratic hell that is the Backward Classes, Most Backward Classes and Minorities Welfare Department in Chennai, where workers languish behind mountains of never-opened files. Asked when it might end he replies: “When everyone becomes equal.”
There is an alternative view: that Tamil Nadu is more equal than most states not because it has lots of reservations but because, overall, it has been run less badly. It has therefore delivered above-average economic growth, from which low-caste Tamils have benefited.
In addition, low-caste businessmen in Tamil Nadu have had opportunities that have nothing to do with government policy. In contrast to north India, where commerce is dominated by members of a few business castes, south India's business community has been more open to members of non-business castes. According to Raman Mahadevan, a business historian, this is partly because members of the south's main trading caste, the chettiars, chose to concentrate their investments outside India during the 19th century, in Malaya and Singapore.
Partly as a result, little large-scale industry emerged in southern India until the 1930s. Around the same time, a popular movement against brahmins—especially lordly in the south—emboldened members of the lower and middle castes, including gounders, who were quick to convert their new assertiveness into business.
The Hindu caste system has never been rigid. Low-caste Hindus do not accept their lumpen position in the hierarchy. Indeed, like middle-class English families, they tend to cherish a myth of their former greatness. By imitating the habits of a more prestigious neighbour, in dress or ritual, some low castes have sneaked a rung or two up the ladder. More recently, in an effort to be classified as an OBC or a dalit caste, some middle-ranking castes have tried to climb a rung or two down.
Meanwhile, on the lowest rung of the ladder, dalit businessmen can be found operating in the informal economy, perhaps as small traders. They must be especially reliant on caste as a business network. But that reliance will change if they can expand into the organised sector. Where businessmen can gain access to credit without having to claim kinship, caste affiliations wither. As Mr Damodaran writes: “A kamma sugar magnate ultimately identifies his interests with other mill-owners and not with fellow kamma cane growers or workers.” And his business may flourish, unfettered.
* “India's New Capitalists: Caste, Business and Industry in a Modern Nation-State.” By Harish Damodaran. Permanent Black/Palgrave Macmillan.
Garment exports plunge
Garment exports plunge
eKantipur.com, 6-Oct-07
Hit by political instability, the tarai unrest, labor stirs and eroding competitiveness, the country's garment exports to the US in the first nine months of 2007 dropped to nearly half of what it was during the same period last year.
According to the Garment Association Nepal (GAN), the cumulative export of Nepali garments to the world's largest apparel market during the period was valued at US $21.91 million, whereas it totaled US $40.98 million during the same period last year.
A breakdown of the monthly export data shows that the export of Nepali readymade garments recorded a decline throughout 2007. In September alone, exports plummeted by one-third of the volume recorded during the same month last year. In September this year, Nepal exported US $2.17 million worth of readymade garments. The figure was US $3.29 million during the same month last year. The biggest declines were recorded in January, February and May when exports fell by more than half of that recorded during the corresponding months last year.
GAN officials attributed the drop to the loss of orders mainly due to internal problems particularly labor stir, frequent strikes and bandas along the highways.
Entrepreneurs said most of their manufacturing units remained closed during the period due to labor unrest, and even those who managed to overcome the problems were operating with a meager volume of orders.
“As vehicles transporting the raw materials and delivering the finished products have not been able to move, timely delivery has been hampered affecting receipts of new orders,” said a GAN official. According to the official, the industry has received fewer orders for the new seasons as well, even for Christmas when demands generally soar.
Over the period, the industry has dropped to second position from being the largest foreign currency earning export industry. Employment in the industry has also dropped to 5,000 persons from over 50,000 in the past.
Entrepreneurs charged that the government had been largely ignoring their demands for providing support to the industry, like developing a garment processing zone and lobbying for preferential market access in the major markets. Experts, meanwhile, attributed the lack of modernization in the industry and market diversification initiatives on the part of entrepreneurs as being critical factors behind the current gloom in the industry.
eKantipur.com, 6-Oct-07
Hit by political instability, the tarai unrest, labor stirs and eroding competitiveness, the country's garment exports to the US in the first nine months of 2007 dropped to nearly half of what it was during the same period last year.
According to the Garment Association Nepal (GAN), the cumulative export of Nepali garments to the world's largest apparel market during the period was valued at US $21.91 million, whereas it totaled US $40.98 million during the same period last year.
A breakdown of the monthly export data shows that the export of Nepali readymade garments recorded a decline throughout 2007. In September alone, exports plummeted by one-third of the volume recorded during the same month last year. In September this year, Nepal exported US $2.17 million worth of readymade garments. The figure was US $3.29 million during the same month last year. The biggest declines were recorded in January, February and May when exports fell by more than half of that recorded during the corresponding months last year.
GAN officials attributed the drop to the loss of orders mainly due to internal problems particularly labor stir, frequent strikes and bandas along the highways.
Entrepreneurs said most of their manufacturing units remained closed during the period due to labor unrest, and even those who managed to overcome the problems were operating with a meager volume of orders.
“As vehicles transporting the raw materials and delivering the finished products have not been able to move, timely delivery has been hampered affecting receipts of new orders,” said a GAN official. According to the official, the industry has received fewer orders for the new seasons as well, even for Christmas when demands generally soar.
Over the period, the industry has dropped to second position from being the largest foreign currency earning export industry. Employment in the industry has also dropped to 5,000 persons from over 50,000 in the past.
Entrepreneurs charged that the government had been largely ignoring their demands for providing support to the industry, like developing a garment processing zone and lobbying for preferential market access in the major markets. Experts, meanwhile, attributed the lack of modernization in the industry and market diversification initiatives on the part of entrepreneurs as being critical factors behind the current gloom in the industry.
Japan requested to fund international airport
Japan requested to fund international airport
eKantipur.com, 6-Oct-07
The government is requesting Japan to finance the proposed second international airport in Nijgadh, Bara district, said Prithivi Subba Gurung, Minister of Culture, Tourism and Civil Aviation.
He said that Japan has responded positively, even though it has not taken a final decision on it. “In addition, we are in talks with some Korean parties for the construction of this airport, and they have shown interest to work under the concept of build-operate-own-transfer (BOOT). However, we have not given the nod as we are awaiting Japan's support,” he said.
He was speaking at the 44th annual general meeting (AGM) of the Nepal Association of Tour and Travel Agents (NATTA) Friday.
Madhav Ghimire, secretary at the Ministry of Culture, Tourism and Civil Aviation, said that budget constraints had emerged as a hurdle to putting in place the required infrastructure for the tourism industry. “The tourism sector needs at least 15 billion rupees during the three-year interim plan. Unfortunately, the budget allocated for the first year of the plan is only 600 million rupees,” he said. He also underscored the need to bring foreign investment into the tourism industry to fill the resource gap.
Pointing to the negative travel advisories issued by foreign embassies, he said that the tourism sector was embedded in the challenge to reverse them. On the national flag carrier, he said that the government was working seriously to restructure the ownership of Nepal Airlines Corporation to resuscitate the troubled carrier.
Dr Pushpa Raj Rajkarnikar, member of the National Planning Commission, said that various policies and projects related to tourism had remained unimplemented mainly because of a fund crunch. “To let the tourism industry to flourish at full pace, an end to the political instability is necessary,” he said.
Dhurba Narayan Shrestha, outgoing president of NATTA, said that despite the operation of new airlines and cessation of the conflict, there has been no expected growth in the tourism industry.
Meanwhile, the AGM of NATTA has unanimously elected a new executive body led by Ram Kaji Kone.
eKantipur.com, 6-Oct-07
The government is requesting Japan to finance the proposed second international airport in Nijgadh, Bara district, said Prithivi Subba Gurung, Minister of Culture, Tourism and Civil Aviation.
He said that Japan has responded positively, even though it has not taken a final decision on it. “In addition, we are in talks with some Korean parties for the construction of this airport, and they have shown interest to work under the concept of build-operate-own-transfer (BOOT). However, we have not given the nod as we are awaiting Japan's support,” he said.
He was speaking at the 44th annual general meeting (AGM) of the Nepal Association of Tour and Travel Agents (NATTA) Friday.
Madhav Ghimire, secretary at the Ministry of Culture, Tourism and Civil Aviation, said that budget constraints had emerged as a hurdle to putting in place the required infrastructure for the tourism industry. “The tourism sector needs at least 15 billion rupees during the three-year interim plan. Unfortunately, the budget allocated for the first year of the plan is only 600 million rupees,” he said. He also underscored the need to bring foreign investment into the tourism industry to fill the resource gap.
Pointing to the negative travel advisories issued by foreign embassies, he said that the tourism sector was embedded in the challenge to reverse them. On the national flag carrier, he said that the government was working seriously to restructure the ownership of Nepal Airlines Corporation to resuscitate the troubled carrier.
Dr Pushpa Raj Rajkarnikar, member of the National Planning Commission, said that various policies and projects related to tourism had remained unimplemented mainly because of a fund crunch. “To let the tourism industry to flourish at full pace, an end to the political instability is necessary,” he said.
Dhurba Narayan Shrestha, outgoing president of NATTA, said that despite the operation of new airlines and cessation of the conflict, there has been no expected growth in the tourism industry.
Meanwhile, the AGM of NATTA has unanimously elected a new executive body led by Ram Kaji Kone.
Friday, October 05, 2007
World Bank to Invest in Bonds Of Poor Nations in Local Currencies
World Bank to Invest in Bonds Of Poor Nations in Local Currencies
Wall Street Journal, 5-Oct-07
By BOB DAVIS
The World Bank said it will start a $5 billion fund to invest in local-currency denominated bonds in poor nations.
The fund's goal is to increase investment by Western pension funds and Asian nations with bulging reserves in countries that are considered relatively risky bets. The World Bank also hopes to boost the ability of poor nations to borrow in their own currencies rather than in dollars or euros. That would help reduce the risks developing nations face when there are large swings in the value of major currencies.
Under the plan, the fund would invest in local-currency denominated bonds, with a minimum value of $200 million, issued by poor countries. The bank plans to start with 15 to 20 countries, including some that already get a substantial foreign investment. They include Brazil, Chile, Egypt, the Philippines and Turkey. If the project works, the bank would invest in bonds from riskier governments, such as Pakistan and Lebanon.
The fund also intends to establish a new bond-rating system that would look not just at a country's ability to repay debt but at economic measures, such as regulations on financial transactions and taxes. The idea is to produce an "investability" index that would rank bonds issued by poor nations -- and give those nations an idea of the kinds of reforms they would need to make to attract investment.
"The aim of the local-currency bond fund is to establish a clear link between policy reform and investment," said World Bank president Robert Zoellick.
The Bank expects half the money in the fund to come from sovereign wealth funds, especially from Asian nations.
Wall Street Journal, 5-Oct-07
By BOB DAVIS
The World Bank said it will start a $5 billion fund to invest in local-currency denominated bonds in poor nations.
The fund's goal is to increase investment by Western pension funds and Asian nations with bulging reserves in countries that are considered relatively risky bets. The World Bank also hopes to boost the ability of poor nations to borrow in their own currencies rather than in dollars or euros. That would help reduce the risks developing nations face when there are large swings in the value of major currencies.
Under the plan, the fund would invest in local-currency denominated bonds, with a minimum value of $200 million, issued by poor countries. The bank plans to start with 15 to 20 countries, including some that already get a substantial foreign investment. They include Brazil, Chile, Egypt, the Philippines and Turkey. If the project works, the bank would invest in bonds from riskier governments, such as Pakistan and Lebanon.
The fund also intends to establish a new bond-rating system that would look not just at a country's ability to repay debt but at economic measures, such as regulations on financial transactions and taxes. The idea is to produce an "investability" index that would rank bonds issued by poor nations -- and give those nations an idea of the kinds of reforms they would need to make to attract investment.
"The aim of the local-currency bond fund is to establish a clear link between policy reform and investment," said World Bank president Robert Zoellick.
The Bank expects half the money in the fund to come from sovereign wealth funds, especially from Asian nations.
Subscribe to:
Posts (Atom)