r&d_newsbrief_19thjul
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R&D_NewsBrief_19thJulTRANSCRIPT
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Date: July 19, 2010
Highlights
Expressing deep concerns over the lingering liquidity shortage, Nepal´s apex
consortium of industrialists has urged the central bank to lower the Cash
Reserve Ratio (CRR) by 50 basis points to five percent in order to ease
ongoing liquidity shortage that has choked the much-needed investments to
the industrial sector.
Amid complaints of overcrowding of the banks and financial institutions
(BFIs) in the country, an upcoming bank under process of getting license from
Nepal Rastra Bank (NRB) has decided not to open. The promoters of the
proposed State Bank of Nepal last week applied to the central for withdrawal
from licensing process although they already deposited 5 percent of paid up
capital as per the licensing policy.
The Confederation of Nepalese Industries (CNI) on Sunday suggested to
Nepal Rastra Bank to formulate policies to enable venture capital and private
equity funds to be set up in Nepal which is a means of funding high risk and
Greenfield projects.
The Extreme Everest Expedition 2010 has successfully completed its goal of
clearing garbage from the ―Death Zone‖ above 8,000 m on Mt. Everest. A
team of 20 Sherpas led by Namgyal Sherpa under the coordination of Chakra
Karki set out to Everest Base Camp on April 25 and cleared out 1,800 kg of
garbage, equally divided between degradable and non-degradable waste. The
trash was piled onto a symbolic mountain at Everest Base Camp.
China is expanding its engagement with Nepal by building what is being billed
as the biggest land port connecting it with the South Asian region as a whole.
This is seen by observers as part of a larger move to connect Xigaze with
Nepal by rail.
Amlekhgunj depot of Nepal Oil Corporation (NOC), which is infamous for
series of irregularities, has been once again marked as the highest loss-making
depots among operation in Nepal.
Two new four-star hotels are beginning operation in Kathmandu Valley right
on the eve of Nepal Tourism Year 2011. Implementing Expert Group (IEG) -
the investment group of businessmen and professionals involved in
international trade - is preparing for the grand opening of the new hotels - Red
Rose Apartment Hotel at Pulchowk and Airport Hotel near Tribhuvan
International Airport - in December.
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Nepal Stock Exchange (NEPSE) began the new fiscal year on a dismal note on
Sunday. The secondary market dropped 9.2 points when the market closed for
the day. Except for the hotel groups’ index; a fall in the indices of all other
groups listed in NEPSE led the secondary market to come down to 468.53
points.
The price of gold declined by Rs 215 per 10 grams in the local market on
Sunday. The yellow metal was traded at Rs 30,090 that day against last week’s
price of Rs. 30,305 per 10 grams. ―The price of the yellow metal has gone
down due to low demand in the international market as the European economy
has improved,‖ Tej Ratna Shakya, president of Nepal Gold and Silver Dealers’
Association, told the Post.
Ruling CPN-UML standing committee on Sunday begun discussion on new
government leadership just three days before the parliament votes to elect a
new prime minister.
The alliance of 10 fringe political parties has decided to back the Maoists to
lead the new government saying that only the Maoists can institutionalize
federalism, secularism and republicanism.
A day after the Nepali Congress chose the party´s Parliamentary Party Leader
Ram Chandra Poudel as its prime ministerial candidate, the party on Sunday
expedited talks with other political parties to court their support for
government formation.
Four Madhes-based and 18 fringe parties Sunday expressed their serious
disagreement over the recent decision of three major parties – Nepali
Congress, UML and UCPN (Maoist) – to form the State Reconstructing
Commission (SRC).
Senior Vice Chairman of the UCPN (Maoist) Mohan Baidhya on Sunday said
the country would face a disaster if a majority government was formed by
bypassing his party.
Foreign Secretary Madan Kumar Bhattarai on Sunday upheld his ministry´s
previous decision to award the tender for printing machine readable passports
(MRPs) to France-based Oberthur Technologies. Taking up two separate pleas
filed by Indonesian Perum Peruri and British De La Rue to review the earlier
decision, Bhattarai took the decision after the ministry could not verify the
charge against the French security printer through diplomatic channels.
The Constituent Assembly (CA) amended its calendar of events for the
eleventh time on Sunday to continue the task of constitution drafting on
schedule.
The government has initiated process to amend the Industrial Enterprises Act,
2049 for the second time. The amendment process has been taken ahead in
line with the Industrial Act, 2067.
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Due to the non-cooperation from political parties, District Development
Committee (DDC), Kailali, was uncertain where or how to invest budget
during the fiscal year of 2009/10.
Manakamana Cable Car recorded the highest number of passengers - over
800,000 - during the current fiscal year, Karobar daily reported. According to
Manakamana Darshan Pvt. Ltd, the number of passengers has increased by
around 200,000 this current fiscal year compared to last year. It has also
collected around Rs. 250 million from the operations of the cable car.
Koshi River has begun breaching an embankment at Pulthegauda of Sunsari
district, putting human settlements nearby at flood risk. Rising water in the
river has devoured a large section of the eastern embankment, said officials of
Water Induced Disaster Control Office in Biratnagar. Efforts to control the
swollen river have failed.
BANKING:
Take steps to ease liquidity shortage: CNI
July 18: Expressing deep concerns over the lingering liquidity shortage, Nepal´s apex
consortium of industrialists has urged the central bank to lower the Cash Reserve
Ratio (CRR) by 50 basis points to five percent in order to ease ongoing liquidity
shortage that has choked the much-needed investments to the industrial sector.
In a set of suggestions forwarded to Nepal Rastra Bank for its upcoming Monetary
Policy for the current fiscal year, Confederation of Nepalese Industries (CNI) has
argued that the proposed reduction of CRR will help inject additional liquidity in the
banking system, thereby helping the banks lower the rising lending rates.
In a press statement issued on Sunday, CNI urged the central bank to defer the
implementation of Statutory Liquidity Ratio (SLR) in view of the liquidity shortage
and recognize vault cash maintained by the bank as part of SLR.
"This will help increase funds available for lending by the banks for its borrowers,
which remains a major impediment for the growth of the business sectors," said the
statement.
The statement has also asked NRB to permit domestic banks and corporate to have
access to abroad financial resources, considering the current liquidity problems in the
country and also to fund larger projects in Nepal.
The government should seriously consider facilitating institutional investors as well as
NRNs from outside Nepal to invest through Nepal Stock Exchange (Nepse) and it
should also initiate preparations for integrating Nepalese capital market with the
international capital market, probably India, the statement added.
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Regarding the long-running confusion over the polices adopted by NRB and
Securities Board of Nepal (SEBON) regarding the dilution of promoters´ share at the
financial institutions, CNI has urged both the regulators to facilitate sale of promoter
shares in a more practical manner.
CNI has also advised the central bank to start working on formulating polices for
initiation of venture capitals and private equity fund with due regulatory mechanism.
It had also sought permission to allow regular Nepalese taxpayers to invest reasonable
amounts overseas in foreign currency in line with the examples set by our neighboring
countries.
"This will help the Nepalese investors create wealth outside the country which will
eventually be brought back to the country," the statement added.
In order to effectively manage the NPA of financial institutions, the government and
the central bank should be serious in setting up Asset Management Company, CNI
said. It further urged NRB to initiate a strong lobby with the government for the
implementation of the Secured Transaction Act and effectiveness of the Debt
Recovery Tribunal.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=21182
Buddding bank gets pre-debut cold feet
JUL 18 –
Amid complaints of overcrowding of the banks and financial institutions (BFIs) in the
country, an upcoming bank under process of getting license from Nepal Rastra Bank
(NRB) has decided not to open.
The promoters of the proposed State Bank of Nepal last week applied to the central
for withdrawal from licensing process although they already deposited 5 percent of
paid up capital as per the licensing policy. ―The promoters have also asked the NRB
to withdraw the deposited amount that they can get back,‖ said a senior NRB official.
As per the bank licensing policy, the promoters should deposit 5 percent of paid up
capital in the central bank before they get principle nod to establish a bank. The new
bank’s promoters had applied to NRB in 2008 to open the new bank. One of the
promoters of the proposed bank also confirmed their withdrawal decision saying that
they didn’t see the viability of additional bank amid current economic situation of the
country. ―With cost of fund of the banking going up, we didn’t see viability to
establishing the bank,‖ said one of the promoters.
The proposed bank has 141 promoters inlcuding businessmen Kamal Kumar Begani,
Karma Ghale, Kumud Dugar, Naresh Dugar, Shekhar Golchha, Pashupati Murarka
and Prakash Mundada. There are already 27 commercial banks under operation and
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other three Century Bank, Commerze and Trust and Civil Bank have already received
letter of intent to open the banks and fourth under process was this bank.
The NRB has been holding up the new licensing until new decision is taken and the
new monetary policy to be released soon is expected make certain new provisions
regarding the bank license.
The NRB official has termed the decision of the promoters of the proposed State Bank
of Nepal as bold and correct one, saying that they could not expect profits at for initial
five years and the profits also would not be as big as big they could earn from other
businesses. ―The decision of a professional group to backtrack from opening new
bank will also discourage those seeking to open new BFI,‖ said the NRB official.
The NRB is under pressure from international institutions such as International
Monetary Fund (IMF) to adopt stringent provisions while awarding bank license.
―The larger number of financial institutions is straining the NRB’s regulatory capacity
that contributes to excessive risk taking,‖ latest report of the IMF said.
http://www.ekantipur.com/the-kathmandu-post/2010/07/18/business/buddding-bank-
gets-pre-debut-cold-feet/210610/
CNI presents wish list to central bank
JUL 18 -
The Confederation of Nepalese Industries (CNI) on Sunday suggested to Nepal Rastra
Bank to formulate policies to enable venture capital and private equity funds to be set
up in Nepal which is a means of funding high risk and Greenfield projects.
There are currently no such institutions, and the CNI says it will also help strengthen
corporate management. The apex body of the industrial sector also asked in its
recommendation that the central bank make it a priority to establish asset management
companies to manage non-banking assets effectively. Establishing such a company
was part of managing the NBA of the two biggest banks Rastriya Banijya Bank and
Nepal Bank Limited under the financial reform programme which is yet to be
opened.
In another recommendation, the CNI has asked to allow corporate houses, banks and
financial institutions to raise resources directly from abroad under external
commercial borrowings.
―Considering the current liquidity problem in the country and also to fund larger
projects in Nepal, corporate houses and banks need to have access to foreign financial
resources through various forms including borrowing from foreign banks and
corporations,‖ it said. The CNI also demanded that the NRB consider allowing regular
Nepali taxpayers to invest reasonable amounts overseas in foreign currency.
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―This will help Nepali investors to create wealth outside the country which will
eventually be brought back to the country and will also help build skill and develop
the risk-taking ability of entrepreneurs.‖ it said.
However, government officials recently said that it would not allow investment
abroad at the moment when the country was facing an acute balance of payments
deficit.
Regarding the capital market, the CNI said that appropriate rules and regulations that
would support and assist private and listed companies in the stock market to raise
resources in the domestic market through instruments such as bonds and debentures
should be formulated and implemented.
The CNI has also spoken for the issuance of municipal bonds to allow municipalities
to finance their infrastructure projects.
http://www.ekantipur.com/the-kathmandu-post/2010/07/18/business/cni-presents-
wish-list-to-central-bank/210611/
BUSINESS & ECONOMY:
Trash hashed from Everest Death Zone
JUL 18 –
The Extreme Everest Expedition 2010 has successfully completed its goal of clearing
garbage from the ―Death Zone‖ above 8,000 m on Mt. Everest.
A team of 20 Sherpas led by Namgyal Sherpa under the coordination of Chakra Karki
set out to Everest Base Camp on April 25 and cleared out 1,800 kg of garbage,
equally divided between degradable and non-degradable waste. The trash was piled
onto a symbolic mountain at Everest Base Camp.
The degradable waste was brought to Namche Bazaar and handed over to the
Sagarmatha Pollution Control Committee. The non-disposable garbage was carried by
yaks and jopkyos to Lukla airport and flown to Kathmandu, said a press statement
issued by Nepal Investment Bank, the major sponsor of the programme.
The team also retrieved two bodies — of Swiss climber Gianni Goltz, who died last
year, and of Russian climber Sergey Duganov.
―We are very happy to see our dream materialize, something that we never thought
would happen. The volunteers carried almost 200 kg of garbage down with them.
Everyone was so sincere about their contribution,‖ said Namgyal Sherpa.Immediate
past president of the Nepal Mountaineering Association, said, ―The snow-capped
Himalaya of Nepal is gradually shrinking due to global warming, exposing the threat
of a tsunami among the people living below the mountains.
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Sherpa added that the threat was to 1.3 billion people whose source of water directly
and indirectly depends on the water flowing down from the Himalaya.
http://www.ekantipur.com/the-kathmandu-post/2010/07/18/business/trash-hashed-
from-everest-death-zone/210613/
China building 'biggest' land port to connect with South Asia via Nepal
BEIJING: China is expanding its engagement with Nepal by building what is being
billed as the biggest land port connecting it with the South Asian region as a whole.
This is seen by observers as part of a larger move to connect Xigaze with Nepal by
rail.
The local government of the Tibet Autonomous Region has said that the Gyirong Port
located in TAR's Xigaze Prefecture will begin operations in 2011 although some
portion of the construction work will continue even after it is opened to public.
The construction of the land port began in 2009 and the local government has now
given instructions to speed up the process.
The purpose is to make Gyirong, the "biggest land trade channel of TAR to South
Asia" over the next three to five years, the local government said.
The idea is to apparently build it as a border post larger than Nathula on the India-
China border and the existing border post connecting the Chinese town of Zhanmu
and the Nepali town of Dram.
There are five other minor points for overland trade on the China-Nepal border, which
are Kodari-Nyalam; Rasua-Kerung; Yari (Humla)-Purang; Olangchunggola-Riyo;
Kimathanka-Riwo, and Nechung (Mustang)-Legze.
Nepal has offered to import petroleum products from China is it is connected with
rail. "Our Government sincerely urges China to consider further extend and upgrade
the existing linkages up to the border of Nepal.
An expanded and enhanced connectivity between the two countries also open the
avenues for Nepal being a transit country between the two giant economies, China
and India," a Nepali government statement said.
http://timesofindia.indiatimes.com/world/china/China-building-biggest-land-port-to-
connect-with-South-Asia-via-Nepal/articleshow/6163712.cms
Amlekhgunj depot loss scales to record high
July 19: Amlekhgunj depot of Nepal Oil Corporation (NOC), which is infamous for
series of irregularities, has been once again marked as the highest loss-making depots
among operation in Nepal.
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A source at NOC has disclosed that the depot has recently reported a loss of 0.91
percent, which is not only higher than the acceptable limit set by the NOC itself but
even higher than last year´s loss, which attracted the constitutional anti-graft body to
launch a full-fledged investigation.
NOC sources said that the latest loss recorded by the depot is 0.34 percent points
higher than the acceptable limit of 0.57 percent in petrol storage.
"Loss recorded this time is far higher than what was found earlier in that depot.
However, no action has been taken against the officials for the irregularities so far,"
said the source, adding, "NOC management is trying to cover up the case with the
intention of protecting the culprits as in the past.‖
Currently, Bijaya Parbat is heading the Amlekhgunj depot, which is the largest depot
in term of transaction of petroleum products and the most lucrative for its employees
in terms of extra financial benefits.
Because of this, many believe that employees for major depots like the one in
Amlekhgunj are selected and deputed by the top officials of NOC under secret deal to
fulfill financial interests of the both parties.
NOC source said depots in Bhairahawa, Pokhara, Nepalgunj and Dhangadhi are
maintaining the loss within the limit set by NOC with the Bhairahawa depot reporting
the lowest volume of loss.
Bhairahawa depot recorded only half of the limit of the loss limit with the loss loss
rate of 0.26 percent, 0.20 percent and 0.15 percent in petrol, diesel and kerosene
respectively. NOC has fixed loss limit at 0.57 percent, 0.32 percent and 0.32 percent
for petrol, diesel and kerosene respectively for this depot.
NOC was compelled to suspend all employees of Amlekhgunj depot a few months
back after an investigation unearthed a huge corruption in the name of excessive
leakage beyond the acceptable limit.
Commission for the Investigation of Abuse of Authority (CIAA) -- the constitutional
anti-graft body -- is still investigating the corruption charges. An NOC investigation
had reckoned that the level of loss at that time was 0.80 percent, which inflicted a loss
of Rs 29 million to the stated-owned fuel monopolist.
Customers are compelled to pay the ever-growing price of petroleum products due to
mismanagement of NOC, which has been adjusting market price as per the
international prices.
Meanwhile, NOC has stated that depots reporting lowest rate of loss would be
awarded in an effort to discourage corruption in the depots in the name of loss in the
quantity of petroleum products.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=21187
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Two four-star hotels coming up in the Valley
July 18: Two new four-star hotels are beginning operation in Kathmandu Valley right
on the eve of Nepal Tourism Year 2011.
Implementing Expert Group (IEG) - the investment group of businessmen and
professionals involved in international trade - is preparing for the grand opening of
the new hotels - Red Rose Apartment Hotel at Pulchowk and Airport Hotel near
Tribhuvan International Airport - in December.
The group is spending more than Rs 2 billion in the two projects. Binayak Shah,
active member of IEG and executive director of both the hotels, said the hotels would
focus on upmarket clientele and that they will not compromise on quality.
This is the biggest investment in Nepali hotel industry after the opening of Hotel
Hyatt Regency about a decade ago.
―We are introducing the best of the international hotel industry in Nepali hospitality
sector with opening of our hotels,‖ Shah told myrepublica.com. He added that they
group will organize soft opening of the both the hotels in 2010 and aggressively
promote them in both national and international markets in the beginning of 2011.
―The construction works have already been completed. We are just giving finishing
touches to the hotels,‖ he added.
Airport Hotel, which is located just in front the Golden Gate of Tribhuvan
International Airport, will have 55 rooms in five floors. The hotel will target people
traveling to and from Tribhuvan International Airport, according to Shah.
―Air passengers traveling to and from different parts of the world and those who have
missed flights can enjoy our hospitality with state of the art infrastructure and
services,‖ Shah added.
Airport Hotel is also the allied member of Hotel Association of Nepal.
Though the hotel will not have swimming pool, the promoters are hopeful of getting
four-star standard for the hotel. IEG has already spent Rs 600 million on the project
and the total investment is expected to touch Rs 750 million upon completion.
Similarly, the group has already invested Rs 400 million in Red Rose Apartment
Hotel, which will have 11 apartments and 30 rooms upon completion. People needing
accommodation for more than seven days are the targeted clients of this hotel,
according to Shah.
IEG is also planning to build shopping complexes and restaurants in both the
buildings.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=21176
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MARKET:
NEPSE’s FY hits bad note
JUL 19 - Nepal Stock Exchange (NEPSE) began the new fiscal year on a dismal note
on Sunday.
The secondary market dropped 9.2 points when the market closed for the day. Except
for the hotel groups’ index; a fall in the indices of all other groups listed in NEPSE
led the secondary market to come down to 468.53 points.
According to stock experts, the secondary market, which had surged on the last
trading day of the last fiscal year, could not sustain the unexpected growth. They
attributed this to the fact that the upswing mode last Thursday was due to investors’
desire to see an increase in the NEPSE index to avoid margin calls from financing
banks. The market had witnessed a double digit growth of 10.4 points on Thursday.
N. K. Mundada, president of Nepal Stock Brokers’ Association, said investors’
tendency to sell their stocks as a reaction to Thursday’s upsurge exceeded the actual
demand, resulting in the tumble of the secondary market on Sunday.
Birendra Raj Kharel, chief of Pragyan Securitites, echoed Mundada’s words and ssaid
the market could have sustained the growth if Thursday’s growth was a ―real one.‖
The index of commercial banks’ group led the loser’s list, as it went down by 15.66
points. Hydropower groups and others witnessing a decline of 2.84 points and 2.35
points respectively followed the commercial banks’ group.
Similarly, groups including development banks and finance companies equally shed
0.94 point on Sunday. However, the hotels’ group did not see a change in its index.
Among the 54 companies on the trading floor, share prices of 12 companies went up
while those of eight companies remained constant.
The 34 companies pulled the secondary market to the red zone.
The stock market witnessed a transaction of Rs 13.19 million through trading of
43,042 shares in 580 transactions.
Unlike on Thursday, shares of Standard Chartered Bank suffered the most, losing Rs
326 per share, while Rastriya Beema Sansthan posted the highest gain with Rs 29 per
share.
http://www.ekantipur.com/2010/07/19/business/nepses-fy-hits-bad-note/318744/
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Gold price slips
JUL 18 - The price of gold declined by Rs 215 per 10 grams in the local market on
Sunday. The yellow metal was traded at Rs 30,090 that day against last week’s price
of Rs. 30,305 per 10 grams.
―The price of the yellow metal has gone down due to low demand in the international
market as the European economy has improved,‖ Tej Ratna Shakya, president of
Nepal Gold and Silver Dealers’ Association, told the Post. He said the demand for
gold in the local market has also gone down to an average of 15 kg per day as
compared to the demand for 20-30 kg per day last week.
The price of silver, however, remained stable at Rs. 480 per 10 grams.
Just two days ago, Nepal Rastra Bank had limited the quota system for interested
commercial banks to import gold to 10 kg per day from the earlier 20 kg.
―Though the demand is low compared to previous weeks, the current quota will not be
able to suffice the local demand,‖ said Shakya. He hoped that the government would
come up with a solution in this regard after bringing in the monitory policy.
http://www.ekantipur.com/the-kathmandu-post/2010/07/18/business/gold-price-
slips/210608/
POLITICS:
UML CC committee to discuss PM candidate on Monday
July 18: Ruling CPN-UML standing committee on Sunday begun discussion on new
government leadership just three days before the parliament votes to elect a new
prime minister.
The meeting decided to forward the matter to the central committee (CC), which
could finalize party´s candidate for the prime ministerial post. The CC meeting is
scheduled for Monday.
"At today´s meeting, we decided to forward the issue to the central committee,"
General Secretary, Ishwar Pokharel, told reporters after the meeting.
The party´s vice chairman Bamdev Gautam said they discussed making Chairman
Jhala Nath Khanal as party´s candidate for the post. "Everyone knows that party
chairman Khanal is the candidate from the UML. However, a formal decision wasn´t
taken today. We decided to discuss this at CC meeting," he said.
The parliament will vote for prime minister on July 21. The deadline to file candidacy
expires on July 20.
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Khanal and leaders close to him have intensified lobbying in and outside the party in
his favor while the party´s heavyweights Prime Minister Madhav Kumar Nepal and
KP Sharma Oli are reportedly not in favor of Khanal´s candidacy.
Oli held separate talks with Khanal and Nepal in the afternoon. He also held one-on-
one dialogue with Pokharel after the end of the standing committee meeting.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=21183
10 parties to back Maoists
July 18: The alliance of 10 fringe political parties has decided to back the Maoists to
lead the new government saying that only the Maoists can institutionalize federalism,
secularism and republicanism.
―The demand for republicanism, secularism and federalism was raised by the Maoists
and it is extremely important to let the Maoists to lead the government for the
institutionalization of these issues,‖ leader of Nepa Party Keshabman Shakya said.
After the meeting, Maoist Vice-chairman Dr Baburam Bhattarai told media persons
that the fringe political parties asked the Maoists to lead the new government. All the
leaders of the 10-party alliance including those from CPN (United) and Sanghiya
Loktantrik Manch were present during the meeting.
The Maoists also held a meeting with the leaders of the Madhesi front. During the
meeting, Madhesi leaders argued that they would lend support to any party supporting
autonomous Madhes province, peace and constitution-drafting.
―We will support the party that addresses the issues of Madhes,‖ said Chairman of
Madhesi People´s Rights Forum (MPRF) Upendra Yadav.
After the meeting, Maoist Vice-chairman Narayankaji Shrestha said that his party´s
views are close to that of Madhesi parties. He said the Maoists would hold further
talks with the Madhes-based parties to garner support for a Maoist-led government.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=21184
NC ups govt formation parleys
July 18: A day after the Nepali Congress chose the party´s Parliamentary Party
Leader Ram Chandra Poudel as its prime ministerial candidate, the party on Sunday
expedited talks with other political parties to court their support for government
formation.
While Poudel held separate parleys with influential CPN-UML leader KP Sharma Oli
and Chairman of Nepal Workers and Peasants Party (NWPP) Narayan Man Bijukchhe
in the morning, there were separate meetings of NC leaders with four Madhes-based
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parties -- Madhesi People´s Rights Forum-Democratic (MPRF-D), MPRF, Tarai
Madhes Democratic Party and Sadbhawana Party -- and Rastriya Prajatantra Party
(RPP) Chairman Pashupati SJB Rana later in the afternoon.
Talking to myrepublica.com, Oli said it was natural for the NC to seek support of
other parties as the party has already picked Poudel as its prime ministerial candidate.
He said he told Poudel that UML will support him after passing a decision through the
party´s Central Working Committee (CWC) meeting.
Bijukchhe told Poudel that NWPP would take a decision whether to support him or
not only after seeing plan and policies of the the proposed NC-led government. The
NWPP has five seats in parliament.
In a meeting held at the NC´s Parliamentary Party Office in Singha Durbar in the
afternoon, the four Madhesi political parties asked the NC to first clear its view on
three different issues related to peace process, constitution drafting and Madhes
agenda.
"The NC sought our support for a government under their leadership," Chairman of
Madhesi People´s Rights Forum (MPRF) Upendra Yadav told reporters after the
meeting.
"We asked them how they plan to ensure timely constitution writing, conclude peace
process and address the Madhesi agenda, which, among others, includes creation of
autonomous provinces," he said.
Almost all top leaders of the four Madhesi parties were present in the meeting that
lasted for more than an hour from 2.15 pm. Besides Yadav, TMDP Chief Mahantha
Thakur and SP chairman Rajendra Mahato were present in the talks. MPRF
(Democratic) Chairman Bijay Gachchhadar was represented by Rameshwar Raya
Yadav and Jitendra Dev.
MPRF Chief Yadav said the Madhesi parties would hold further talks among
themselves before announcing their support.
NC Spokesperson Arjun Narsingh KC told media persons that the talks were
"positive". He declined to divulge further details.
According to an NC leader present in the meeting, the Madhesi parties asked the NC
to first seek support of the UML as it plays a determining role in the formation of an
NC-led government. ―First garner support from the UML,‖ the leader quoted Madhesi
parties as saying. ―We will then talk to you about it.‖
With the Big Three -- UCPN (Maoist), the NC and CPN-UML -- still unable to forge
consensus and exploring all options for government formation under their leadership,
the support of the four Madhesi parties, which have revived their practically defunct
united front, could tilt the balance. Madhesi parties have 82 seats in parliament.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=21174
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22 parties express their 'disagreement' on formation of SRC
18 July 2010 : Four Madhes-based and 18 fringe parties Sunday expressed their
serious disagreement over the recent decision of three major parties – Nepali
Congress, UML and UCPN (Maoist) – to form the State Reconstructing Commission
(SRC).
In a meeting of all 25 parties represented in the CA called by CA chairman Subash
Chandra Nemwang at the CA hall in New Baneshowr Sunday, the 22 parties made it
clear to the big three that they were not consulted when the SRC was formed, and
such a commission is against the sentiments of Madhesi people.
Chairman of MJF Upendra Yadav expressed that Madhesi people have objection to
the recent decision of three major parties to form seven-member State Restructuring
Commission (SRC) without consulting them.
There is no need for such a commission when Constituent Assembly is working for
state restructuring," Yadav expressed. He also criticised big three parties for taking
state restructuring task as their 'sole responsibility'. "We do have equal roles to play,"
he stated.
The smaller parties argued that the SRC is not necessary when there is the Committee
of State Reconstructing and Devolution of State Power as a legislature body.
Speaker of the CA, Subash Chandra Nemwang, summoned today's meet to inform
about the decision of forming the SRC and the new timeframe of statue writing,
before presenting it at CA session taking place Sunday afternoon after 3
pm.nepalnews.com
‘Govt sans us! Unthinkable...’
JUL 18 - Senior Vice Chairman of the UCPN (Maoist) Mohan Baidhya on Sunday
said the country would face a disaster if a majority government was formed by
bypassing his party.
Releasing the Hindi edition of the autobiography of jail-breaker Uma Bhujel in the
Capital, the Maoist second-in-command said a coalition formed without the largest
party in it would merely be a ―formal government‖ and would be unable to address
the challenges facing the country.
―The country won’t get a new constitution and the peace process will not reach a
logical conclusion if a majority government is formed,‖ he said, adding that the
mainstream parties, especially the Nepali Congress, were trying to corner the Maoists.
Reiterating that the Maoist party would never surrender, Baidhya said it would rather
struggle if there was no national unity government in place.
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He said the integration and rehabilitation of the Maoist fighters living in UN-
monitored camps cannot gain momentum without a unity government. Baidhya
claimed attempts were being made to besiege the Maoist party by
preventing the formation of a unity government, adding reluctance of non-Maoist
parties to give any powerful position to the single largest party was an indication.
http://www.ekantipur.com/the-kathmandu-post/2010/07/18/nation/govt-sans-us-
unthinkable.../210589/
CA calendar amended for 11th time
July 18: The Constituent Assembly (CA) amended its calendar of events for the
eleventh time on Sunday to continue the task of constitution drafting on schedule.
This is the first time that the CA calendar was amended after extension of the CA
term on May 28.
The amended calendar, prepared by the CA´s Business Advisory Committee (BAC)
and tabled by CA Chairman Subas Nembang, was approved by the CA´s full meeting.
As per the newly amended calendar, all reports of the thematic committees would be
transferred to the Constitution Committee (CC) for preparation of an integrated draft
of the constitution by October 16.
Similarly, the CC would begin its work to prepare the integrated draft of the
constitution from October 18 and complete its work within a month. Rest of the work
would be conducted as per the decision of the BAC.
The calendar plans to complete all works related to constitution-drafting by mid-April
2011.
After the proposal to amend the calendar was approved, CA Chairman Nembang
explained why the CA failed to draft the new constitution within two years.
According to him, the constitution-drafting and integration and rehabilitation of the
Maoist combatants are inter-related, but the integration process fell under the
jurisdiction of the executive and that posed hurdle to constitution-drafting.
Nembang also argued that the promulgation of the new constitution is the culmination
of the peace process, but the peace process itself did not move ahead, as expected, to
its logical conclusion.
Among other factors, Nembang argued, are the lack of consensus on the basic
principles of the constitution and serious differences among the political parties.
The CA chairman postponed the CA meeting until further notice.
Earlier in the morning, Nembang had called a meeting of 25 political parties to inform
them about the amendment.
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During the meeting, Madhesi parties had objected to the decision of the UCPN
(Maoist), Nepali Congress (NC) and CPN-UML to form State Restructuring
Commission (SRC) at this point of time. Consequently, the working schedule of SRC
was not inserted in the CA calendar due to the objection.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=21164
GENERAL:
Foreign Secy upholds MRP tender to Oberthur
July 18: Foreign Secretary Madan Kumar Bhattarai on Sunday upheld his ministry´s
previous decision to award the tender for printing machine readable passports (MRPs)
to France-based Oberthur Technologies.
Taking up two separate pleas filed by Indonesian Perum Peruri and British De La Rue
to review the earlier decision, Bhattarai took the decision after the ministry could not
verify the charge against the French security printer through diplomatic channels.
The Indonesian and British security printers had filed the complaints against the July
7 decision under the Public Procurement Act, accusing the French security printer of
furnishing fake user certificate of personalized printer from PARK and OPC.
They had alleged that the PARK and OPC personalized printers were not used in
Korea and Ghana, something contrary to the claim of Oberthur.
―We inquired to find out the authenticity of the issues raised in the complaints through
our embassies in Seoul and New Delhi. We also contacted Korean Embassy and
Japanese Embassy. But no one has replied to us to date,‖ said Mukti Nath Bhatta, the
chief of protocol.
The ministry had contacted Korean government, government of Ghana and Libya
through its missions in Seoul and Delhi to find out fact.
―As we could not get information for and against the previous decision, there is no
need to cancel it (to award the tender to Oberthur),‖ Bhatta added.
The ministry had selected Oberthur among four bidders after it found the offer of the
French printer most competitive. It has offered to supply per MRP at US$ 3.59.
According to Bhatta, the Indonesian and British security printers can lodge complaint
against the ministry´s decision at the Office of the Public Procurement Monitoring.
The MRP tender has already landed in the Public Accounts Committee of parliament.
The ministry on Sunday sent all the documents related to the tender to the committee
for investigation.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=21167
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Govt set to amend Industrial Enterprises Act
18 July 2010 : The government has initiated process to amend the Industrial
Enterprises Act, 2049 for the second time.
The amendment process has been taken ahead in line with the Industrial Act, 2067.
The ministry of industry has formed a task force to chalk out a draft of the
amendment. The task force constitutes members representing ministries pertaining to
industry, law, labour, finance, commerce and supply.
The task force is planning to accomplish the amendment process within three months
for fiscal year (FY) 2067/68.
The industry ministry is also consulting with concerned stakeholders to incorporate
their suggestions in the draft paper.
The Industrial Enterprises Act, 2049 saw the first amendment in 2054 B.S.
The draft paper incorporates special policy level arrangements related to 'no work, no
pay’, industrial security force, special economic zone, export increment, mobilisation
of local resources, protection of intellectual property and additional privileges and
facilities for small and cottage industries, among others. nepalnews.com
Manakamana Cable Car records highest number of passengers
18 July 2010 : Manakamana Cable Car recorded the highest number of passengers -
over 800,000 - during the current fiscal year, Karobar daily reported.
According to Manakamana Darshan Pvt. Ltd, the number of passengers has increased
by around 200,000 this current fiscal year compared to last year. It has also collected
around Rs. 250 million from the operations of the cable car.
―Both national and international visitors have increased this year‖, said Sunil
Karmacharya, in charge of the cable car operation. Of the total visitors, 60 percent
were Nepalese while 40 percent were international, he added.
679,185 passengers used the cable car during the fiscal year 2065/66 while the
number has increased to 835,000 passengers in this current fiscal year. The number of
passenger was recorded at 592,605 in the fiscal year 2064/65.
Karmacharya also said that the numbers has increased to stand at about 2,500
passengers a day which used to be about 2,000 passengers daily.
During the mid-July to mid-August period, there are many visitors from India to
Pashupatinath whom also visit the Manakamana temple on the same trip, and this has
contributed to increase the cable car passengers, he added.
Manakamana Cable Car has ferried 5,800,000 passengers till date since the beginning
of its operations. nepalnews.com
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Sunsari embankment on Koshi target
JUL 19 - Koshi River has begun breaching an embankment at Pulthegauda of Sunsari
district, putting human settlements nearby at flood risk.
Rising water in the river has devoured a large section of the eastern embankment, said
officials of Water Induced Disaster Control Office in Biratnagar. Efforts to control the
swollen river have failed.
Engineer Mohan Bhattarai said the embankment may burst anytime and devastation
would be unprecedented if immediate steps are not taken. Continious rainfall also
has affected repair work at the embankment.
Experts had recommended repair and maintenance of the Pulthegauda section of the
eastern embankment before the monsoon, but things failed to take off due to lack of
budget.
Sunday afternoon’s reading showed that the water flow rate in the Koshi Barrage was
132,000 cu.sec. A week earlier, the measurement had showed this year’s highest at
175,000 cu.sec.
Chief District Officer of Sunsari Ram Prasad Thapaliya said a team led by his deputy
was at Pulthegauda to take stock of the situation.
http://www.ekantipur.com/2010/07/19/national/sunsari-embankment-on-koshi-
target/318756/