HOURS AFTER HE WAS REAPPOINTED AS Prime Minister of interim cabinet, Prime Minister Girija Prasad Koirala left for New Delhi, India to attend the 14 th Summit of South Asian Association for Regional Cooperation (SAARC). His 30-member entourage includes newly appointed Foreign Minister Sahana Pradhan and Finance Minister Dr. Ram Sharan Mahat. Before the two-day Summit kicks off on April 3, PM Koirala will meet with Indian Prime Minister Dr. Manmohan Singh on Monday (April 2) to hold bilateral talks. He is scheduled to meet with PM Singh at 11 am at the PM’s residence in Race Course Road. Likewise, he is also scheduled to meet with Indian President APJ Abdul Kalam on Monday evening.
NEPAL OIL CORPORATION (NOC) and Indian Oil Corporation (IOC) have signed a deal in New Delhi on Saturday (March 31) to extend the existing petroleum product supply agreement between them by a further five years period. It has also been decided to build a pipeline between Raxaul and Amlekhgunj to ensure seamless supply of petroleum products from Indian side to Nepal.
TWO SENIOR USAID OFFICIALS ARRIVED in Kathmandu on Sunday (April 1) for a six-day visit to Nepal. They are Mike Hess, Assistant Administrator for USAID's Bureau of Democracy, Conflict, and Humanitarian Assistance, and Robert Jenkins, Acting Director of USAID's Office of Transition Initiatives (OTI). “The officials will evaluate opportunities for the United States to further support the ongoing peace process and review how USAID programs are assisting Nepal's political transition, food security, and disaster preparedness. They will meet with political leaders, civil society representatives, and beneficiaries of USAID programs in Kathmandu and in the far western districts,” says a press release issued by the US Embassy. “The U.S. Government, through USAID, extends assistance from the American people to peoples of other countries struggling to build better lives. This support ranges from helping to recover from a natural disaster to working to create a free and democratic nation. For 55 years, USAID/Nepal has provided assistance to the people of Nepal in the areas of conflict mitigation and peace building, democracy and governance, health and family planning, economic growth, and disaster and humanitarian aid,” the release adds. The visit of top USAID officials coincides with the inclusion of the Maoists in the interim government.
THE COUNTRY’S SOLE SECONDARY SHARE market has reacted positively to the formation of interim government by including the Maoists. On Sunday (April 1), the Nepal Stock Exchange (Nepse) gained 21.16 points on a single day. The rise meant the market capitalization value, too, increased by Rs 7 billion. The rise followed the announcement of interim government and the recent instruction by the Nepal Rastra Bank to commercial banks and financial institutions to increase capital. The Nepse index increased from 480.99 points to reach 502.45 points on Sunday.
OWING TO THE INCREASING DISCHARGE of waters in the rivers, the Nepal Electricity Authority (NEA) has announced to cut the power cuts from 24 to 12 hours a week from Friday (March 31). Just recently, it had cut down load shedding hours from 40 to 24 hours per week. As per the new schedule, the NEA will cancel load shedding between 9.00 am to 12.00 pm and 2.00 pm to 5.00 pm in the capital valley; and between 9:30am and 12:30pm and 2:30pm and 5:30pm outside the valley. Reports quoted head of the NEA's Load Dispatch Center chief Sher Singh Bhat as informing that there will only be three hours of power cuts for four days in a week, two in the morning and two in the evening. Of late, due to increasing warmth and sunshine, the snow have started to melt increasing the volume of water in rivers.
THE NEPAL RASTRA BANK (NRB) has decided to double the amount of capital required to open a new commercial bank, development bank and finance company. The central bank made the decision to discourage opening of new banks. As per the decision of the NRB board on Thursday (March 29), Rs 2 billion of paid-up capital will now be needed to open a commercial bank – up from Rs 1 billion. Likewise, to open a development bank, one will have to have paid-up capital of Rs 640 million – up from Rs 320 million. The investors of commercial banks will have to produce evidence of source of capital and payment of due tax. As per the new decision by NRB, even existing banks will have to increase their paid-up capital to Rs 2 billion within 2069/70. At present, there are 19 commercial banks in operation in the country with one more having received initial permission to operate.
