THE PRO-MAOIST STUDENT UNION has withdrawn its strike in education sector following a meeting of nine student organizations. The All Nepal National Free Students Union (ANNFSU-Revolutionary) president Lekhnath Neupane said that the strike has been withdrawn. They had launched the indefinite strike demanding release of their activists who have been arrested by police in course of their clashes with pro-Congress Nepal Student Union (NSU) activists last week. NSU president Pradeep Poudel said they have agreed to form a central-level mechanism to maintain understanding among the student organizations.
THE GROSS LOSS OF NEPAL ELECTRICITY AUTHORITY (NEA) this year has decreased by Rs 1 billion – primarily due to the depreciation of US dollar during the period along with decrease in the interest rate it pays to the government. This year, the NEA’s loss stand at Rs 329.6 million – down from Rs 1.26 billion loss last year. Speaking at an annual program of NEA, executive director Arjun Kumar Karki said that decline in loss was caused by increase in income and control in operating expenditure. He also pointed out at the depreciation of US dollar and decrease in interest rate it paid to government from 10.25 percent to 8 percent as reasons for decline in the total loss. The NEA needs to pay in US dollars for the power it purchases from Bhotekosi and Khimti projects. While the value of one US dollar was Rs 54 during the agreement period, the value rose to Rs 78 last year. This year, it came down to Rs 65 providing a great relief to NEA. At the program, Karki said that the technical losses and leakages have also declined from 25.12 percent last year to 24.94 percent this year. He informed that to overcome load shedding NEA has started Chameliya (30MW) and Kulekhani III (14 MW) on its own resources. He said by this year’s end, NEA will invite tender bids to construct Rahughat (27 MW), Upper Trishuli (60 MW) and Upper Tamakosi (309 MW).
FOOD SHORTAGES LOOM IN NEPAL and other South Asian nations hit by torrential rains, floods and landslides affecting more than 28 million people, the United Nations said on Saturday. The food situation gives "serious cause for concern" due to loss of animals and unfavorable crop prospects following damage to recently planted crops, the UN Food and Agriculture Organization (FAO) said on its website. "Opportunities for replanting once the water has fully receded are limited as the sowing period of the main cereal season normally ends by mid-August in Nepal," it said. Nepal's Tarai region which serve as the country's grain basket -- accounting for over 70 percent of rice production -- have been hard hit. Although water levels have receded from the second week of August, thousands of hectares of agricultural land have been destroyed at the peak of the planting season and the outlook for production has worsened, the FAO said. Food shortages in the Tarai, which was also affected by drought and floods in 2006, are likely to worsen, the food agency added.
THE WORLD BANK HAS APPROVED the selection of Butwal Power Company (BPC) to build the 30 MW strong Kabeli hydropower project. The government had selected BPC for the project and recommended that to the World Bank. After canceling the 402 MW Arun project more than a decade ago, Kabeli is going to be the first hydropower project to be financed by the World Bank. Sources have said that following the bank’s approval, preparations are afoot in the Department of Electricity Development to sign agreement on the construction of the project. The department has also formed a committee headed by deputy director general Shriranjan Lacoul to hold negotiations for the agreement. The committee has representatives from Finance, Water Resource, Power Development Fund and Nepal Electricity Authority. The committee will soon hold talks with BPC to finalize the agreement, source said.
AFTER FIVE DAYS OF STRIKE, the export-import trade from Tatopani point – the only overland trade route between Nepal and China – has resumed from Wednesday (August 15). Traders and workers had launched the strike demanding security in Araniko highway. The meeting among representatives of workers, traders and administration held in Dhulikhel has decided to resume the trade activities. The understanding was reached after the administration assured to enhance security mechanisms in the highway. Traders and workers had become enraged after normal trade and transport were frequently disturbed by various gangs in highways who stopped them in the name of YCL or other groups and extorted them.
THE POLITICS ON PETRO PRICES ARE CARRIED out in the name of poor people but have actually benefited other classes, reports Kantipur daily. At present, the Nepal Oil Corporation (NOC) incurs least loss in kerosene while it bears greater losses on fuels like petrol, diesel and LPG, which are used by people who can afford. The NOC loses Rs 3.84 per liter of kerosene while its loss on petrol has reached Rs 5 per liter – this subsidy has to be shouldered even by poor people living in remote areas who never use petrol. The LPG or cooking gas, which is consumed most by people living in the capital and in urban centers, causes huge loss to the NOC, around Rs 277 per cylinder. Forty percent of these LPGs are used by commercial enterprises like vehicles, hotels and factories. In diesel, the loss stands at Rs 6.26 per liter. According to NOC spokesperson Ichha Bikram Thapa on the month of August, the loss of NOC reached to Rs 348.3 million – of which the share of kerosene (considered as poor man’s fuel) is only Rs 61.4 million. Biggest loss is incurred due to low price in cooking gas (Rs 170 million) followed by diesel (Rs 137.7 million) and petrol (Rs 42.5 million). “If we can adjust the price of petrol and cooking gas alone with their current cost price (in international market), the total loss of NOC can come down to Rs 120 million a month. Then we can gradually increase the price of diesel,” said Thapa. As its price in international market has increased, the NOC’s loss in August increased by 25 percent. It had committed to pay Rs 2.30 billion to Indian Oil Corporation on August but could pay only Rs 2 billion due to which it is facing some cuts in supply. The outstanding dues of NOC for IOC still remain at Rs 3.2 billion. Its outstanding dues for internal loan stand at Rs 6.5 billion.
