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R&D_NewsBrief_13May
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R&D
Economic Research & Business
Development
1
Date: May 13, 2010
Highlights
Nepal Bankers´ Association has executed an ´informal gentleman
understanding´ among all 27 commercial banks to limit deposit interest rate at
12 percent - a move some experts believe as against the spirit of liberal
economic policy.
Forgive me, averred UCPN (Maoist) Chairman Pushpa Kamal Dahal on
Wednesday as he apologised to intellectuals and Valley folk for
"inconvenience" caused them due to his public speech from Khula Manch.
―My statement was not meant to hurt people here. I apologise if you felt
aggrieved at my remarks," Dahal said at an interaction held by his party with
intellectuals and civil society leaders.
Unified CPN (Maoist) Pushpa Kamal Dahal has said his party is ready to keep
the combatants under the supervision of the special committee and complete
the integration and rehabilitation process within four months.
Prime Minister Madhav Kumar Nepal held a series of meetings with leaders of
the 11 different parties represented in the Constituent Assembly (CA) seeking
their renewed support to the current government as well as their approval for
extension of the CA's term.
The ruling parties‘ insistence that the number of combatants to be integrated
into the security forces has to be fixed right away is ―a ploy to humiliate the
Maoists,‖ UCPN (Maoist) Chairman Pushpa Kamal Dahal said on
Wednesday. The Nepali Congress and CPN-UML are demanding as a
precondition to a consensus government that the Maoist propose the number
of combatants to be integrated.
Three trade unions affiliated to different political parties have demanded that
factory workers be paid their wages for the six days work stopped as a result
of the general strike called by the UCPN (Maoist).
Due to government negligence Nepal is going to loose billions of rupees that
is collected by network marketing companies. ―General people‘s hard-earned
money is at risk as the law does not guarantee security,‖ said Jyoti Baniya,
general secretary of Consumer Rights Protection Forum (CRPF). These
companies collect billions but — according to the law — they have to deposit
only Rs 2.5 million in the DoC to get operating licence.
The deck is now clear for Nepal Stock Exchange (NEPSE) to appoint new
stock brokers after the Ministry of Finance gave its nod to the process on
Wednesday. Despite a Supreme Court (SC) verdict allowing NEPSE to
appoint new stock brokers, the secondary market authority was hesitating to
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decide on the same as the ministry had issued a letter to NEPSE asking it not
to go ahead with the process. The ministry cited a direction of the Commission
for Investigation of Abuse of Authority (CIAA) on the issue.
While the stock market has been witnessing gains over the past three
consecutive days, Nepal Stock Exchange (NEPSE) index saw double digit
growth on Tuesday and Wednesday. On Wednesday, the index closed at
449.08 points with a gain of 17.52 points while the market gained 12.79 points
on Tuesday. Although the first trading day after the UCPN (Maoist) lifted its
general strike on Friday saw negative growth, the ensuing days are showing
promising signs.
Mobile phone recharge cards of Nepal Telecom worth Rs. 100 are being sold
at a higher price than stated. Retailers in the New Road and Dallu areas of
Kathmandu have been found to be charging from Rs. 103 to Rs. 105 for the
cards.
Has UCPN (Maoist) Chairman Pushpa Kamal Dahal seen the light? On
Wednesday, he said constitution writing and peace process, and not leadership
of a national unity government, is the prime issue. Speaking at an interaction
with intellectuals and professionals here, he said, ―In an environment of peace
and a new statute, we will accept anyone who can lead the unity government.‖
This, at a time when his party has been saying it alone should lead the
government.
Nepali Congress (NC) has asked the Unified Communist Party of Nepal-
Maoist (UCPN-M) to come up with a proposal in the next two days to sort out
the PLA issue.
The United Nations Security Council (UNSC) on Wednesday renewed the
mandate of the United Nations Mission in Nepal (UNMIN) by four more
months till September 15, urging the government and the political parties to
agree and implement a timetable on integration and rehabilitation of Maoist
combatants.
The government has approved additional Rs 150 million to Nepal Food
Corporation (NFC) as subsidy to deliver food grains to remote food deficit
districts.
Nepal Electricity Authority ―may face bankruptcy‖ if the current electricity
tariff is not adjusted. In a letter circulated to the Electricity Tariff Commission
(ETC) recently, the power body has hinted its inability to provide electricity to
consumers given that the present tariff rate remains same.
The Supreme Court (SC) has refused to issue an interim order to stay the
decision of the Nepal Army (NA) to recruit another 271 technical staff.
A committee investigating the murder of media entrepreneur Jamim Shah has
stated in its report that he was killed by an Indian criminal gang at the behest
of the Indian ‗underworld‘. A source seeking anonymity said, ―The reason
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was not personal enmity, aggressiveness or trade between Shah and the
killers.‖
Foreign mountaineers who have climbed Mount Everest and another peak
will get free Nepali visas for two years, part of a scheme to boost tourism in
the Himalayan nation, a senior government official said.
BANKING:
Banks limit deposit interest rate to 12 pc
Nepal Bankers´ Association has executed an ´informal gentleman understanding´
among all 27 commercial banks to limit deposit interest rate at 12 percent - a move
some experts believe as against the spirit of liberal economic policy.
A banker, preferring to be unnamed, informed Republica that a meeting of Nepal
Bakers´ Association (NBA) took the decision some two weeks back to deal with
growing competition among commercial banks in attracting deposits by offering
higher interest rates.
Justifying the decision, the bankers said the NBA was forced to take the decision to
avoid possible spiral of unhealthy competition of offering more and more interest
rates to attract additional deposits that, if unstopped, will ultimately take entire
banking industry toward disaster.
The banker further elaborated possible impending risks and said that the interest rate
on one year deposits would have reached around 15 percent had such arrangements
not been implemented.
"If the banks are compelled to take deposits at 15 percent, they will have to invest
them in above 20 percent. Most of the businesses will become economically unviable
at that lending rates," he said. However, he was quick to add that such arrangement
will be applicable only for a short period of time, as it doesn´t incorporate other
players like development banks and finance companies which are already offering
interest rates higher than the limit.
Another banker, however, said the understanding is unlikely to remain in place as it is
not in the interest of new banks. "If all the banks offer the same deposit rate, it will be
difficult for the new banks to attract new depositors because all will go to established
banks," he said, requesting anonymity.
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The banker further said that both the Finance Ministry and Nepal Rastra Bank have
already been informed about the decision and that both the institutions have quietly
supported the move.
NBA president Sashin Joshi defended the decision and said that such decision was
necessary to stop a looming vicious upward spiral of deposit interest rates that could
take the lending rates to a level where no one can afford. "We have just tried to keep
the deposit interest rate equal to prevailing inflation rate," he said.
Joshi further said that the understanding will not be in place for a long period as the
liquidity situation has already improved.
NBA vice president Rajan Shingh Bhandari said that the decision was necessary to
maintain borrowers´ confidence that was eroding fast due to rapid rise in lending
interest rates. "Not only was the decision aimed to tackling weakening investors´
confidence, it was also to ensure adequate flow of credit to the economy," Bhandari
said. He also informed that the banks have agreed to keep the interest rates on deposit
between 11-12 percent.
However, experts have opposed the decision, labeling it as an attempt to reverse more
than two-decade long liberal policy, allowing market forces to set both lending and
deposit interest rates. \
"If that is the case, then the decision not only is against the spirit of liberal economic
policy but also limits customers´ interests as it squeezes competitiveness in the
banking industry," said Dr Ram Chandra Bhattarai, associated professor of Tribhuvan
University.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=18547
POLICY:
Dahal rues ‘dandy tirade’
Forgive me, averred UCPN (Maoist) Chairman Pushpa Kamal Dahal on Wednesday
as he apologised to intellectuals and Valley folk for "inconvenience" caused them due
to his public speech from Khula Manch.
―My statement was not meant to hurt people here. I apologise if you felt aggrieved at
my remarks," Dahal said at an interaction held by his party with intellectuals and civil
society leaders.
At the Khula Manch meeting on May 8, Dahal had said a "handful of so-called
intellectuals who have earned some money wear sukila-mukila (fancy clothes) and are
writing and speaking against the people while there are petty kings in the Valley". His
speech had intellectuals bristling.
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On Wednesday, however, he said "99 percent of intellectuals in Kathmandu are wise"
and "one percent are fools".
Seeking to sooth Kathmanduites' ire, he said they are wise and committed to equality.
"The Capital has always stood against rulers," he added. On the occasion, some
speakers directly or indirectly flayed his May 8 statement. Comedian Madan Krishna
Shrestha jeered, ―Welcome all neat and clean intellectuals and vigilantes to this five-
star hotel.‖ Dahal remained all smiles even when Shrestha lampooned him.
Kush Kumar Joshi, President of the Federation of Nepalese Chambers of Commerce
and Industry (FNCCI), was also at variance with Dahal over his remarks.―What does
vigilante mean?" he asked. "Do not utter such vulgar words,‖ he advised Dahal.
Countering Joshi, Dahal said some vigilantes raised slogans against him during the
peace rally. Joshi rejoined the parties should settle disputes through consensus to
make everyone neat and clean within days, he said.
Dr. Arun Shayami also advised Dahal not to launch verbal attacks on Kathmanduites.
http://www.ekantipur.com/the-kathmandu-post/2010/05/12/nation/dahal-rues-dandy-
tirade/208196/
Maoists ready to keep combatants under special committee
Unified CPN (Maoist) Pushpa Kamal Dahal has said his party is ready to keep the
combatants under the supervision of the special committee and complete the
integration and rehabilitation process within four months.
Addressing the gathering of the intellectuals at the end of the interaction organised by
his party on Wednesday, Dahal said the critical issues behind delay in forging
consensus is the concrete number of combatants that other parties have been
demanding for integration.
He said, his party proposes to separate those willing to integrate and those willing to
rehabilitate within one month so that number for integration can be worked out.
He questioned why a demand has been put today for transforming his party into a
civilian one. ―Had we contested the elections as a military group, an armed group?
Were we leading the government as an armed party?‖ Dahal questioned.
Responding to queries from the participants why he had accused the peace rally
organisers as vigilantes and threatened the intellectuals and Kathmandu residents,
Dahal said, he did not intend to do that. ―I had accused only those who were
humiliating our party cadres, not all intellectuals and all Kathmandu residents.‖
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Repeating his regular rhetoric that he had resigned as prime minister to avoid clashes,
Dahal said the party decision to withdraw the general strike was also to avoid similar
clashes.
―So much has been talked that the whole strike was for making me prime minister. It
clearly was not. I have already proposed in my party meeting that any person from
any party can be the prime minister but we want the assurance that constitution will
be written and peace process concludes,‖ Dahal added.
He mentioned that few elements have been trying to push the country into war, clash,
chaos and dismantle the CA. Dahal claimed some Indians had entered Birgunj during
the strike to create disaster like in the past when over 30 Maoists cadres were killed
on the spot. ―I have good information that such elements tried killing at least 150
people each in Birgunj, Janakpur and Saptari so that country would convulse into
civil war.‖
He claimed such elements had started ignoring the decision and command of Girija
Prasad Koirala, since few months before his death.
Additionally, he accepted that it was mistake to call nationwide general strike.
In another context, he claimed his party has never obstructed constitution-making
process and expressed sadness for continued allegations clamped on his party for
being hindrance to the peace process and constitution writing.
Stating that Prime Minister Madhav Kumar Nepal will not resign at any cost even if
UML asks him, he finally said it was a tussle between progressive and regressive
forces, which will determine whether republican Nepal will grow as independent or
dependent nation. nepalnews.com
PM Nepal confers with leaders of 11 parties for CA term extension
Prime Minister Madhav Kumar Nepal held a series of meetings with leaders of the 11
different parties represented in the Constituent Assembly (CA) seeking their renewed
support to the current government as well as their approval for extension of the CA's
term.
He separately met Madhesi Janadhikar Forum (Loktantrik) chairman and Deputy
Prime Minister Bijaya Kumar Gachchhadar and Terai Madhes Loktantrik Party
chairman Mahantha Thakur.
He also held joint discussion with CPN (ML) general secretary C.P Mainali and CPN
(United)'s Chandra Dev Joshi and Sunil Prajapati of Nepal Workers and Peasant
Party. The leaders of the three communist parties suggested the PM to initiate process
for extension of the CA's term on consensus.
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PM Nepal also met leaders of six other smaller parties - Chure Bhawar Rastriya Ekta
Party, Nepa Rastriya Party, Sanghiya Loktantrik Rastriya Manch, Dalit Janajati Party,
Nepal Loktantrik Samajbadi Dal and Samajbadi Prajatantrik Janata Dal.
On Tuesday, most of these fringe parties had signed a joint press statement with
UCPN (Maoist) demanding the resignation of the current government.nepalnews.com
Dahal irked at govt stance
The ruling parties‘ insistence that the number of combatants to be integrated into the
security forces has to be fixed right away is ―a ploy to humiliate the Maoists,‖ UCPN
(Maoist) Chairman Pushpa Kamal Dahal said on Wednesday.
The Nepali Congress and CPN-UML are demanding as a precondition to a consensus
government that the Maoist propose the number of combatants to be integrated.
―It is not immediately possible to fix the number,‖ the Maoist Chairman said at an
interaction with intellectuals and professionals here. ―This condition has a deeper
meaning, it is guided by a remote power,‖ he said, hinting at India.
He said his party was ready to complete the integration and rehabilitation of Maoist
combatants within four months, before the expiry of the sixth extension of UNMIN‘s
mandate on Sept. 15. The UN Security Council is yet to take a decision on the
government‘s request to extend UNMIN‘s term.
Dahal said his party was ready to disassociate combatants from the party‘s chain of
command and bring them under the Special Committee for the Supervision,
Integration and Rehabilitation of Maoist combatants. ―We are ready to regroup those
opting for integration and rehabilitation in two separate camps within Jestha (June
14),‖ he added.
Dahal opposed the condition floated by ruling parties on transformation of the Maoist
party into a civilian one saying that the issue had no relevance. He said the
mainstream parties never raised the issue of the transformation of the Maoist party
while signing the Comprehensive Peace Agreement, promulgation of the Interim
Constitution and the emergence of the party as the single largest one through the
Constituent Assembly election of April 2008.
Meanwhile, a senior non-Maoist leader said the signing of a deal between ruling
parties and the main opposition scheduled for May 1 had been put off at the ―last
moment‖ after the former insisted on fixing the number of combatants to be
integrated. ―All issues were settled, the Maoists were ready to bring their combatants
under the special committee but the deal was blocked after the condition on numbers,‖
said the source. ―After that, the Maoists took the tougher stance that they won‘t
support the extension of the tenure of the Constituent Assembly unless the prime
minister steps down.‖
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A senior Maoist leader clarified that his party was flexible about the integration
process, but it fears the incumbent government will not go if concrete steps are taken
before the resignation of the prime minister.
The party is ready for integration of its 5,000-7,000 combatants into various security
agencies and option of rehabilitation for the rest. It opposes the rehabilitation package
worth Rs. 250,000 per head proposed by the government. The peaceniks propose that
the rehabilitation package should be worth Rs 500,000, but the opposition wants Rs.
1,000,000 for each individual.
http://www.ekantipur.com/the-kathmandu-post/2010/05/12/top-story/Dahal-irked-at-
govt-stance/208189/
BUSINESS & ECONOMY:
Unions want strike days’ pay
Three trade unions affiliated to different political parties have demanded that factory
workers be paid their wages for the six days work stopped as a result of the general
strike called by the UCPN (Maoist).
The Maoists had organised a nationwide shutdown from May 2 demanding that the
prime minister step down.
The General Federation of Nepalese Trade Unions (GEFONT), the Trade Union
Congress and the Madhesi Trade Union Forum, Nepal have opposed the "no work, no
pay" system proposed by the private sector.
The workers have complained that the banda left them without food for their families
as they lost their income during the strike.
Executive secretary of the Morang Merchant Association Shyam Bhandari said that
the association had not decided whether the workers would be paid for the duration of
the banda.
"The Federation of Nepalese Chambers of Commerce and Industry will make a final
decision in this regard," he added.
http://www.ekantipur.com/2010/05/13/business/unions-want-strike-days-pay/314194/
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More new brokers in offing
The deck is now clear for Nepal Stock Exchange (NEPSE) to appoint new stock
brokers after the Ministry of Finance gave its nod to the process on Wednesday.
Despite a Supreme Court (SC) verdict allowing NEPSE to appoint new stock brokers,
the secondary market authority was hesitating to decide on the same as the ministry
had issued a letter to NEPSE asking it not to go ahead with the process. The ministry
cited a direction of the Commission for Investigation of Abuse of Authority (CIAA)
on the issue.
After the CIAA halted the process and questioned transparency in the appointment
process, NEPSE had moved the SC, which, in turn, had decided in favour of the
secondary market authority a few months ago.
With a view to appointing 27 new brokers, NEPSE has already shortlisted 316
candidates out of the 336 applicants. "We will now take an examination of the
shortlisted candidates and submit a potential list of 27 and 25 percent additional
applicants for final appointment to the Securities Board of Nepal (SEBON)," Shankar
Man Shresha, the NEPSE general manager, said on Wednesday.
The need for more brokers was felt after the NEPSE witnessed a good growth.
http://www.ekantipur.com/2010/05/13/business/more-new-brokers-in-offing/314193/
Recharge cards get dearer
Mobile phone recharge cards of Nepal Telecom worth Rs. 100 are being sold at a
higher price than stated. Retailers in the New Road and Dallu areas of Kathmandu
have been found to be charging from Rs. 103 to Rs. 105 for the cards.
Wholesalers said they obtain recharge cards at Rs. 96 each from Nepal Telecom and
sell them for Rs. 97-98 to shopkeepers who are required to retail them at Rs. 100.
When a mobile set is recharged using a card of Rs. 100 value, only Rs. 97.74 is added
to the subscriber's balance. But this system is not being implemented, and people have
been forced to pay more. The retailers have their own reasons why they
are charging their customers extra. Ram Mani Lamsal, a shopkeeper in Dallu, said he
had to sell the cards at Rs. 105 each as he obtained them from wholesalers for Rs.
103.
Sunil Kumar Sharma, a wholesaler, dismissed the retailers' claim saying that he did
not charge more than Rs. 97 to Rs. 98.
http://www.ekantipur.com/2010/05/13/business/recharge-cards-get-dearer/314190/
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MARKET:
NEPSE on gaining spree
While the stock market has been witnessing gains over the past three consecutive
days, Nepal Stock Exchange (NEPSE) index saw double digit growth on Tuesday and
Wednesday.
On Wednesday, the index closed at 449.08 points with a gain of 17.52 points while
the market gained 12.79 points on Tuesday. Although the first trading day after the
UCPN (Maoist) lifted its general strike on Friday saw negative growth, the ensuing
days are showing promising signs.
Nanda Koshore Mun-dada, president of Nepal Stockbrokeres‘ Association is not sure
if it is a sign of bullish trend. ―We have to watch the trend next week too,‖ he said,
adding that rise in stock market has not sustained longer 7-10 days in earlier days too.
―It may be a correction after the continuous decline to the lowest ebb,‖ he said.
A double digit growth in three sectors, including banking and hydropower, fuelled
NEPSE‘s ascent.
Another group apart from the banking and hydropower sector gained 30.54 points to
top the gainers‘ list.
Shares of 21 commercial banks changed hands on Wednesday, among which Laxmi
Bank Ltd. was the only loser in the sub-group, shedding 37 points.
Heavyweights like Nabil Bank Ltd., Standard Chartered Bank Ltd., Nepal Investment
Bank Ltd., Nepal SBI Bank Ltd. and Everest Bank Ltd. dominated the sub-group.
Fifteen companies were on the trading floor in the development banks‘ group. Sanima
Bikash Bank Ltd. topped the sector with a gain of 32 points while Biratlaxmi Bank
Ltd. shed the most, 38 points.
Of the 17 finance companies on the trading list, Lumbini Finance Ltd.
lost 31 points to top the losers‘ list, while IME Financial Institution Limited gained 30
points to top the group.
Shares of four insurance companies, three hydropower companies and the Nepal Door
Sanchar Company were also traded in the stock market.
http://www.ekantipur.com/2010/05/13/business/nepse-on-gaining-spree/314195/
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POLITICS:
Maoists mellow stance on unity govt
Has UCPN (Maoist) Chairman Pushpa Kamal Dahal seen the light? On Wednesday,
he said constitution writing and peace process, and not leadership of a national unity
government, is the prime issue.
Speaking at an interaction with intellectuals and professionals here, he said, ―In an
environment of peace and a new statute, we will accept anyone who can lead the unity
government.‖ This, at a time when his party has been saying it alone should lead the
government.
Dahal said he did not expect Prime Minister Madhav Kumar Nepal to resign. ―He will
cling on another year by extending the Constituent Assembly tenure. Unfortunate for
peace and the constitution.‖
He claimed forces were trying to fragment his party and keep it outside the
government.
He said, ―We must create pressure from all quarters to topple this government and
form one of consensus.‖
He said he expected help from intellectuals to do so. Outlining his position, he said,
―There are two forces — one for secularism, change, national independence, federal
democratic republic and federalism and another that opposes these and progress.‖
He claimed plots were being hatched inside and outside the country to split his party.
―Statute-drafting will not be completed even after the CA‘s term is extended as
reactionaries are plotting,‖ he added. ―Late Girija Prasad Koirala used to check them,
but now reactionary forces have hijacked NC.‖
Dahal said his party was all for a commission on missing persons and a truth and
reconciliation commission to make public the whereabouts of those who went missing
during the insurgency.
―We have to take the Nepal Army as well as Maoists into confidence while forming
the commission,‖ he said. Dahal also assured of disbanding the Young Communist
League within days.
He claimed he had averted confrontation in the country in the past one year.
―Last year, I stepped down from the post of prime minister to avert confrontation.
Again, we called off the indefinite strike to avert the same.‖
Dahal further claimed that ―some forces‖ tried to repeat the Gaur massacre (where 27
Maoist cadres were killed) during the strike.
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―Incident that were witnessed in Birgunj, Janakpur and other places where attempts to
kill a number of our cadres with a view to breaking the peace process. However, we
foiled these conspiracies by withdrawing the general strike,‖ he said.
http://www.ekantipur.com/the-kathmandu-post/2010/05/12/top-story/Maoists-
mellow-stance-on-unity-govt/208188/
Come up with PLA proposal in two days: NC to Maoists
Nepali Congress (NC) has asked the Unified Communist Party of Nepal-Maoist
(UCPN-M) to come up with a proposal in the next two days to sort out the PLA
issue.
In a meeting Wednesday morning with UCPN-M Chairman Pushpa Kamal Dahal, NC
leaders rejected his proposal to reach an agreement on the PLA issue by mid-June and
asked him to come up with a concrete proposal in two days.
"We have asked him to come with his proposal on the PLA, including the numbers to
be included in the Nepal Army, and a detailed time-frame for integration and
rehabilitation," said a senior NC leader privy to the dialogue with the Maoist
leadership.
"If we can reach an agreement on the PLA issue, the present deadlock will be over.
Without it, I don´t see any breakthrough," he said.
What is NC´s preference on the PLA numbers to be integrated in the Nepal Army?
"We have to take the army into confidence on this issue and we cannot decide the
number independently but there is no way we can integrate more than 3,400 PLA
combatants into the national army," he said, adding, "a few thousand additional forces
can be accommodated in other security forces."
The NC leaders have also told Dahal that they are open on the leadership issue and
that they are not opposed to him. "We have told him the NC is not against his
leadership but this issue should be sorted out at the end after an understanding is
reached on the six-point agenda," said the NC leader.
Leaders of the Tarai Madhes Democratic Party (TMDP) have met Maoist leader Dr
Baburam Bhattarai and assured him of their support as the next prime minister.
The last meeting of the UCPN-M standing committee decided that the question of
which party and who should lead the next government will be settled later on.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=18552
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UNMIN to stay till Sept 15
The United Nations Security Council (UNSC) on Wednesday renewed the mandate of
the United Nations Mission in Nepal (UNMIN) by four more months till September
15, urging the government and the political parties to agree and implement a timetable
on integration and rehabilitation of Maoist combatants.
Ambassador to the UN Gyan Chandra Acharya told Republica that the UNSC adopted
a resolution to this effect upon the request of the government for extension of the
UNMIN´s mandate after the expiry of the current mandate on May 15.
This is the sixth extension of the UN mission tasked with assisting the peace process
that began in November 2006.
Some UNSC members, while discussing Nepal government´s request for mandate
extension, maintained that UNMIN should be given broader role in integration and
rehabilitation of combatants. Some other member argued that UNMIN should be
given six months mandate. But both the arguments were not subscribed.
"We have to work extensively to convince the UNSC to pass a resolution in line with
the government request," a source at the Nepali mission told Republica.
While renewing the mandate, the UNSC called on all political parties to resolve their
differences through peaceful negation. It further urged political parties to expedite the
peace process, and to work together in a spirit of cooperation, consensus and
compromise in order to continue the transition to a durable long-term solution and to
enable the country to move to a peaceful, democratic and more prosperous future.
UNSC, according to the resolution obtained by Republica, also decided that UNMIN
should immediately begin to make necessary arrangements for its withdrawal,
including handing over any residual monitoring responsibilities by 15 September.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=18551
GENERAL:
Govt approves Rs150 m for food supply
The government has approved additional Rs 150 million to Nepal Food Corporation
(NFC) as subsidy to deliver food grains to remote food deficit districts.
The Ministry of Finance (MoF) decided to sanction the amount to the state owned
food supplier to speed up the delivery of food grains to the deficit districts of mid-
western and far-western regions, said Bijaya Dhwoj Thapa, deputy general manager
of NFC.
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NFC had suspended food supplies from last month citing shortage of fund in this
prime season of food delivery. The government has already sanctioned Rs 554 million
to NFC as transport subsidy for this year.
NFC had demanded a total of Rs 880 million from the government to supply 220,000
quintals of food grains against the total demand of 300,000 quintals from the deficit
districts.
Last year, the government had allocated Rs 610 million for the delivery of 193,000
quintals of food grains.
NFC has been delivering the foods grains to over two dozen districts under the
government´s transportation subsidy.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=18544
NEA may face ‘bankruptcy’
Nepal Electricity Authority ―may face bankruptcy‖ if the current electricity tariff is
not adjusted.
In a letter circulated to the Electricity Tariff Commission (ETC) recently, the power
body has hinted its inability to provide electricity to consumers given that the present
tariff rate remains same.
The tariff rate has not been adjusted for the last nine years. The current utility rate is
Rs. 7 per unit.
On Feb. 25, NEA had submitted a proposal to ETC, urging the latter to increase the
tarrif by minimum 25 percent as to stabilise its financial condition by equalising the
loss and profits.
In reply, the commission on April 1, had sent a letter to NEA asking why it wants to
revise the tariff.
Responding to ETC, the electricity authority stated that it is likely to face problem in
providing service to consumers across the country.
NEA is facing a loss of Rs. 4 billion yearly and the total loss so far is around Rs.12
billion. As a result of the deepening loss, NEA hasn‘t been able to develop new
hydropower projects in the recent years.
http://www.ekantipur.com/2010/05/13/capital/nea-may-face-bankruptcy/314203/
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SC nixes stay on NA recruitment drive
The Supreme Court (SC) has refused to issue an interim order to stay the decision of
the Nepal Army (NA) to recruit another 271 technical staff.
On April 19, two separate litigations had moved the SC against the NA's new
recruitment drive that started on the same day. The litigants had demanded a court
intervention to stop the Army from moving ahead with the recruitment drive claiming
―the move violated the Comprehensive Peace Agreement (CPA) and the last year's SC
interim order that stayed NA's similar recruitment drive.‖
Issued by a joint bench of justices Top Bahadur Magar and Krishna Prasad
Upadhyaya, the order concluded that it was not necessary to stay – at least for the
interim period – the NA's recruitment as that was purely technical and related to
delivering ―humanitarian services‖ like medical services to the needy.
―The court decision maintains that the balance of convenience in the case did not
necessitate an interim order,‖ said SC Assistant Spokesman Hemant Rawal. ―The
decision takes into account the fact that new vacancies were purely related to
recruiting technical manpower (not for infantry) such as doctors, for delivering of
humanitarian services.‖
The SC's rejection to issue the stay order, however, does not end the case here. The
court is yet to issue a final verdict on the same, which may take several months. On
top of that, last year's case on similar recruitment row is also pending at the court.
Petitioners, including advocate Shree Krishna Subedi, had argued that since the apex
court stay order on NA's earlier bid to recruit Army personnel was still in effect and
the court has not given a final verdict on the case, the Army cannot start another
recruitment bid as it would be a direct contempt of court. ―Last year's interim order
had asked the Army not to start any new recruitment and also not to give
appointments to those who had not received the letter when the order was issued,‖
said Subedi.
The court had invoked Clause 5.1.2. of the CPA while staying the last year's
recruitment drive, because it was not technical but for infantry.
The Clause 5.1.2. states that ―both sides shall not recruit additional 'military' forces
and shall not transport arms, ammunition and explosives or conduct military activities
against each other.‖
However, there is a serious disagreement over the interpretation of the word
―additional.‖ While the NA argues that CPA allows it to recruit under the ceiling
fixed at the time of signing the agreement (95,000) unless it is ―additional‖, the
petitioners maintain that the Army cannot recruit anyone.
http://www.ekantipur.com/2010/05/13/top-story/nepal-in-obamas-anti-hunger-
plan/314208/
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Economic Research & Business
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Mafia shot Jamim, says panel
A committee investigating the murder of media entrepreneur Jamim Shah has stated
in its report that he was killed by an Indian criminal gang at the behest of the Indian
‗underworld‘.
A source seeking anonymity said, ―The reason was not personal enmity,
aggressiveness or trade between Shah and the killers.‖
The five-member team formed on Feb. 8 and led by former Justice Govinda Prasad
Parajuli sent its report on Wednesday.
The report has tried to buttress the motive behind the killing. The report
recommended Nepal Police adopt new and scientific methods of investigation and
added ―foreign maneuvering has increased in Nepal.‖ It said the police mechanism is
outdated. The report said the government should hand over the Department of
Immigration to Nepal Police for security reasons.
The probe committee comprises officials of Nepal Police, National Investigation
Department, Attorney General‘s Office and a security expert.
The 192-page report has covered the overall aspects of the incident.
http://www.ekantipur.com/2010/05/13/capital/mafia-shot-jamim-says-panel/314217/
Everest climbers to get free Nepal visas
Foreign mountaineers who have climbed Mount Everest and another peak will get
free Nepali visas for two years, part of a scheme to boost tourism in the Himalayan
nation, a senior government official said.
More than 4,000 climbers have scaled the 8,850m (29,035 feet) Everest summit since
it was first climbed by New Zealander Sir Edmund Hillary and Tenzing Norgay
Sherpa in 1953. Some 700 of these foreigners are said to be still alive.
"We will waive the visa fees for them to visit Nepal in 2010 and 2011 part of the
Nepal Tourism Year plan," Ranjan Aryal, the most senior bureaucrat in the tourism
ministry told Reuters this week.
Himalayan Nepal, home to eight of the world's 14 highest mountains, including
Mount Everest, has designated 2011 as the year to boost tourism. It plans to receive
one million visitors next year, up from nearly half a million now.
Tourism accounts for 4% of the gross domestic product but travel officials say
political unrest, frequent general strikes and shutdowns of transportation and roads
had hit the industry.
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Officials said nearly 200 foreigners who have climbed Mount Dhaulagiri, the world's
seventh highest at 8,167m (26,794 feet), would also get free visa this year and in 2011
as Nepal marks the 50th anniversary this week of the first ascent of Dhaulagiri by a
Swiss-Austrian expedition.
Climbers will also get a 50% discount in climbing fees for Dhaulagiri for the rest of
2010 and all of next year as part of the celebrations, another official said.
Each foreign climber has to pay $5,000 to the government as royalty for climbing
Dhaulagiri.
http://www.dnaindia.com/world/report_everest-climbers-to-get-free-nepal-
visas_1382455