Every Nepali Has Rs 12,000 Loan On His/Her Head
The report of the Auditor General has stated that total loan of the government has crossed Rs 312.66 billion – which translates into Rs 12,000 per Nepali. In the last year, the per capita loan stood at Rs 15,000 but this year owing to the adjustment in foreign exchange, the loan has come down a little. Meanwhile, the report stated that the annual profits of the state corporations for the fiscal year 2004/05 stands at Rs 7.4 billion out of which Rs 3.55 billion was earned by Nepal Telecom and Rs 1.32 by Rastriya Banijya Bank. On the other hand, net loss of government agencies has reached over Rs 45 billion out of which Rs 2.3 billion was incurred in the fiscal year 2004/05. The net loss is 416 percent more than the original assets of the agencies. According to the annual report of the Auditor General handed over to prime minister on Wednesday, the existing arrears in the government offices have reached more than Rs 26 billion while the arrear figures of the corporations and committees is less than Rs 4 billion. The main areas of arrears in the corporations include advance paid to the employees (Rs 6.70 billion), borrowing (Rs 3.9 billion), security bonds (Rs 14.9 billion) and debt (Rs 39.5 billion). According to Auditor General Gehendra Nath Adhikari, the arrears on advance payment stood at 37 percent, an increment by Rs 1.6 billion compared to preceding year, which is quite abnormal. The government has not been able to recover over Rs 2 billion from the state agencies which the government paid while giving financial guarantee of the state agencies to draw debts.
The net balance asset of the Rastriya Banijya Bank is negative by Rs 20.2 billion. In the preceding year, the bank had incurred loss of Rs 23 billion while it was able to earn Rs 1.32 billion profit in the fiscal year 2004/05. The report also pointed out that the revenue of the Zonal transportation office in Bagmati went down by Rs 10 million due to the decision of the government to provide more concession on imports of foreign vehicles. Compiled from reports
Sikkim Lures Nepali Investment
The government of Sikkim state of India has introduced a number of incentives to attract Nepali businessmen to invest there. After the Sikkim government announced heavy discount in tax and offer of land on lease along with power and transport facilities, a number of Nepali industrialists have spread there wings. Chaudhary Group has installed a factory of Wai Wai noodles, which has been operating for the last six months. Another factory of scotch whisky has also been opened. Besides, the opening of Nathu la pass between India and China has also attracted Nepali traders to Sikkim . RB Subba, State Minister for Tourism and Industry of Sikkim, said that as Nepal has entered into peaceful phase, both Nepal and Sikkim should join hands to promote tourism in their regions. Nepal Samacharpatra daily reports
Maoists Step Up Efforts Against Police Post Restoration
Maoist cadres in Rupandehi district have captured the police post in Dhakdhai on Thursday (December 14) and ousted the policemen who had been posted there only six days ago. In Dhakdhai, reports say that the Maoists brought a number of common people from around the area and made them to demonstrate while they resorted to vandalism and threw out bedding and other stuffs belonging to policemen. Maoists forced people from Simarhawa, Amarhawa, Barahawa, Padamwa, Mainihawa, Pakadbhindi as well as other villages like Uttar Devadaha, Kerbani and Makahar in the vicinity of 10 kilometer from the area to participate in the demonstration. Women and children were also among the people. Many of them said they had come out of curiosity to watch the incident. The Maoists forced 18 policemen led by sub-inspector Shambhu Chaudhary out of the post. Chaudhary later said that the Maoists might be working under guidance of certain elements because the establishment of police post had affected smuggling in the area. In Nawalparasi, too, the Maoists warned the policemen to return from recently relocated Sunawal post. Immediately after the Maoists went away, local village women descended on the police post and requested them not to shift from there. In districts like Sindhupalchowk, Kavre and Sankhuwasabha also the Maoists have started obstructing the relocation of police post. Similar campaigns have been reported from far-western districts like Doti, Kanchanpur and Achham. The Maoists have claimed that they would not allow police post relocation till interim government including them is formed. Kantipur daily reports
Student Agitation Suspended
Students have agreed to suspend their ongoing agitation after the government agreed to recruit teachers based on open competition. Earlier, after the parliament passed an Education bill allowing temporary teachers to automatically qualify for permanent teachers had sparked nationwide protests from students who believed such provision could steal away their chances of employment. On Thursday (December 14), students and Education Minister Mangal Siddhi Manandhar agreed that for one time, the temporary teachers will be allowed to take part in open competition without age bar. The Minister said that necessary provisions will be introduced in the rules to facilitate the agreement. Leading dailies report
Small Debtors Pay Up, Big Ones Stall
Small and medium borrowers (SMBs) have been paying back their loans to the state-owned Rastriya Banijya Bank (RBB) while big ones have been getting away scot-free without paying back anything. SMBs include those with loans ranging from Rs 30,000 to Rs 2.5 million. In their meeting with Public Accounts Committee (PAC) officials, bank chairman Dr. Bhola Nath Chalise informed that the bank management has been receiving prompt response from SMBs compared to the big ones. SMBs are found to be much more serious compared to big borrowers due primarily to their concerns over their social prestige, explained Chalise. Over 16,000 cases of SMBs have already been settled amounting to Rs 10 billion in cash during past three years, when the new management took over, he informed. However, only 43 big borrowers paid back their loans. There are still 150 big borrowers (defaulters) who are yet to clear their dues amounting to more than Rs 8 billion (principal only), said RBB spokesperson Janardan Acharya. Of the bank’s total loan portfolio of Rs 27 billion, SMBs occupy only 11 percent, according to bank sources. Bruce F. Henderson, CEO of the RBB, said that non-performing assets (NPA) of the bank has been reduced to 34.8 percent from an earlier 72 percent which is a great achievement for the bank. He added that steps like VRS, rightsizing the number of employees from 5700 to 3270 have also helped reduce bank’s expenses. According to the bank source, RBB is likely to give further incentives to small borrowers, to be decided in a few days. The Himalayan Times daily reports
Demonstrators Attack Ambulance, A Patient Dies
The organizers of eastern region bandh obstructed the movement of ambulance and attacked it leading to the death of a young patient in Itahari on Tuesday (December 12). When the demonstrators belonging to Federal Limbuwan State Council (FLSC) – who had imposed bandh in nine districts of the region demanding federal state – pelted stones at the ambulance, the oxygen supply to the patient was cut off, which killed 21-year-old Biplav Singh. The patent was returning home after being discharged from a nursing home in Biratnagar when the demonstrators attacked it in Itahari of Sunsari district. Ambulance driver was also injured in the incident. Kantipur daily reports
Containers Arrive From India
Indian officials have handed over seventy containers to Nepalese authorities in Birgunj. Seventy storage containers meant for storing the Maoist arms had arrived in Birgunj from India . The storage containers arrived at the Sirsiya dry port in Birgunj by cargo train from Kolkata , India , Monday (December 11) evening, officials at the Parsa District Administration Office said. The storage containers would be sent to the People’s Liberation Army (PLA) cantonment sites as soon as the painting of the containers is completed, they said. While signing the agreement on management of arms and armies on November 28, the government and the Maoists had agreed to request the Indian authorities to provide 70 storage containers. Compiled from reports
Palace Army Secretary Recalled
Six months after the cabinet had dissolved the Military Secretariat at Royal Palace , the army has formally recalled palace military secretary General Gajendra Limbu and Colonel Purna Silwal. They will both now work at army headquarters. After their recall, there are now few officials still working in the palace secretariat and they are said to be on the process of being recalled. Leading dailies report
Government Starts Kulekhani III Construction
The government has started the construction of Kulekhani III hydropower project. Twenty years after the construction of Kulekhani II, the government and the Nepal Electricity Authority (NEA) have formally started the construction of Kulekhani III. The construction of concrete bridge in Rapti river and access road to powerhouse has been started following an understanding with the local people. Although Nepal had requested Japan to help in its construction, the latter expressed its inability and, therefore, the government and the NEA are chipping in with 25 and 75 percent cost, respectively, out of the total estimated cost of Rs 2.3 billion. Both Kulekhani I and II were constructed with Japanese help. They remain the only storage-type hydropower project in the country. And their significance is quite high as they are used during winter months when all other run-of-the-river projects perform below capacity. The Kulekhani III is expected to be completed by the end of 2009. Nepal Samacharpatra daily reports
Government Calls For Open Competition In Hydro Power Development
The government is preparing to hold an open competition among foreign investment companies who have shown interest to develop Upper Karnali , Budhi Gandaki and Arun III hydro power projects. The government, on Thursday, has decided that finalists would be selected on the basis of volume of benefit for Nepal government. The Hydroelectricity Policy of 2001 states that in the run-of-the-river type projects that are export-oriented, 7.7 percent royalty should go to the government. Apart from this provision, the government has decided that it would award the project to a company that promises maximum royalty and benefits. The government has given 45 days to the companies who have already applied or any other interested ones to submit their proposal. “We extended the timeline so that more prestigious companies come in the fray,” Gyanendra Bahadur Karki, State Minister for Water Resources, told Kantipur daily. Earlier, the government had fixed December 20 as the deadline for the companies, who had already applied showing interest to develop the three mega projects, asking them to provide additional information regarding their financial and technical capability and benefits they can give to Nepal government. Among the three projects, Upper Karnali has the strength of 300 MW, Budhi Gandaki has the strength of 600 MW and Arun III has the strength of 402 MW. Kantipur daily reports
Nepse Scales 500 Points
For the first time in last eight years, the Nepal Stock Exchange (Nepse) index has climbed over 500 points. On Wednesday, the Nepse index reached 503.02 points – crossing over the psychological barrier of 500 points. It had gained 8.84 points compared to Tuesday when the index had stood at 494.18 points. With this increase, the total market capitalization has reached Rs 127 billion. It was back in 1999 that Nepse had reached record level of 547 points. However, in subsequent years due to intensification of conflict, decline in investor confidence and economic debacle, the Nepse – the only secondary capital market of the country – continuously fell down and went below 300 points. However, in the last six months, the Nepse has continued to gain points rapidly. The recent rise in Nepse index, as usual, is triggered by increase in share prices of commercial banks and financial institutions – which constitute 80 percent of the listed companies in the Nepse. General manager of Nepse Rewat Bahadur Karki said that recent peace process along with some speculative transactions have pushed the index. Compiled from reports
