“These Three Regions – Hills, Mountains and Terai - Are Complimentary And Supplementary To Each Other”
Mohan Gopal Khetan
Born 61 years ago in Kathmandu , industrialist MOHAN GOPAL KHETAN has seen many ups and downs in the country’s political history. A law graduate of Tribhuwan University , Khetan completed his school education from Judhodaya High School of Kathmandu. Living under the medical supervision for uncontrolled diabetic, Khetan, whose Khetan Group of industry is the second largest tax payer to the country, spoke to KESHAB POUDEL on various issues. Excerpts:
As a person heading one of the largest business houses, what do you want to see for the future of Nepal ?
My wish is to see prosperous, strong and unified Nepal . As you know, I was born in Bhedasing, in the heart of capital Kathmandu but I have home in Birgunj, Terai. I have grown up with the contacts of people from all three geographical regions of Nepal Himal, Pahad and Madhesh. I have industries in hills, mountains and terai where people from all three geographical regions work. These three regions of Nepal are complimentary and supplementary to each other. Personally, I have great attachments with all these regions. I want to see all these regions remain closer. I want to see a situation when every one feels proud of being a citizen of Nepal . When I visited foreign countries many years ago, only few people knew about Nepal . Many knew this as a country of Mt. Everest . There was a prestige in carrying Nepali passport.
At a time when the country has been passing through a very unstable situation, how do you see the future scenario?
Of course, present political scenario is very gloomy as political instability continues. I think there is a silver lining as well. As Nepal ’s two neighbors India and China are moving ahead with high economic growth, it will bring prosperity as well as opportunity to Nepal . I am very hopeful of future of Nepal .
How do you see the present situation?
The seven party government enjoys overwhelming international and national support but it is unable to translate this goodwill for the benefit of larger sections of poor people of Nepal . Thanks to enormous international support and goodwill, this government can make a lot of difference. As all of us know Nepal is now one of the debt-trapped countries spending huge amount of resources just to pay loan and interest. Had the government proposed for debt relief, international communities would have responded positively paving the way for poverty alleviation. Our country is in crisis of survival and we have to protect it.
How can we protect it?
Whenever some one buys land, he or she will construct wall around it. Then he/she will pay attention to things like road connection and sewerage facilities. After securing the border only can a person plan what kind of land he wants to develop. In the present case, it is for the SPA and Maoists to decide what kind of new Nepal they want to build. Instead of fighting for petty interests of who gets how much share in resources, they should give attention to larger interests of the country.
What is the status of Nepal ’s debt now?
According to published documents, every Nepali now owes about Rs.13000. The government is annually paying more than Rs.6 billion as interest. The country needs more resources to address the country’s development challenges and it is not in a position to generate more internal revenue now. As some countries like Japan have already started to provide debt relief to Nepal , others too will give similar gesture. Had we requested for debt relief, other countries would have supported it.
It is often reported in newspapers that you supported political parties?
There is nothing to hide about it. A political diary - which is in my heart – will show that I have supported all political parties irrespective of their ideology and nature.
As you have fair knowledge of politics of Nepal , how do you see the issues like federalism raised by various groups?
I am not a constitutional lawyer or a scholar but a businessman. One must keep in mind that the United States was not made overnight. It took more than two hundred years for the US to see the present state of federalism. If we turn the country into various federal states as demanded by various communities, castes and ethnic groups, we too need to spend another century to learn the functioning of federal state. At a time when our two big neighbors are moving ahead with high economic growth bringing prosperity to their people, debating too much on unknown political issue will push us far behind. If we continue to involve in political debates of various kinds, our country will never move forward economically.
Even civil society members of the country are raising similar demands. How do you look at it?
From technocrats to former bureaucrats and retired diplomats, all are claiming now as a civil society member. Running a civil society organization and business are two different things. There must be difference between the members of civil society and businessmen. Civil society members must speak truth showing that they are impartial and above political considerations.
How do you see businessmen different than civil society members?
Whoever may come to power, we businessmen have to work with those in power since we have business interests. This is not necessarily so with the civil society members. I admire Dr. Sundermani Dixit since he is one of the good doctors of Nepal . Had he taken the responsibility to manage Bir Hospital , tens of thousands other poor Nepalese patients would have got service of his expertise. Many people who are now claiming to be Civil Society members held high positions in politics, civil service and bureaucracy. When they were in decisive positions, they were unable to bring tangible change. Now, I can see such retired people are sitting in different sides of Singh Durbar demanding to kick out the King from his power. The King has already been made powerless so where is the logic of always talking about him now.
How do you see the state of business and industry now?
Don’t talk about business and industry. There is no day when one or other events do not disturb the business and industries. One day, there is a trade union strike of seven party alliance and the next day there is general strike of Maoists trade union. If we manage to settle the internal trade union problems, then there is indefinite general strike by one or other groups. Besides the general strikes of political groups, even local level groups call transport strikes. Now, the power cut has added another problem. It is impossible to run industry and business now but we have been trying to do impossible thing. We have no option other than to live with this new reality. Manufacturing is a long process. When you stop it once, you need to spend additional money to restart it. It means the cost of production goes high. One day’s closure means disturbance of 15 days of production process. We are spending all our energy in such disputes. Once we produce the commodities, nobody can predict whether it will reach the particular market in particular time. We cannot not deliver goods and/or import raw material.
What are the options before the industrialists?
If one cannot create conducive environment, it is better to ask industrialists to stop the industry for at least three months. If we shut down the industries, common people can get the minimum electricity required for household consumption. You can see the contradictory situations: when one section of local people were organizing Narayani Fair in Birgunj, another was calling Narayani bandh. What kind of Nepal are we building?
As you claim you support all political parties, are they supporting you now to operate your industry smoothly?
As I said, nobody is safe and sure in this stage of instability. One of my industries, Mayos has been facing frequent strikes. When our factory management signed an agreement with trade union of seven parties, the Maoists trade union called another strike. When both the trade unions agreed to work, the security guards who are hired to provide security themselves locked the gate.
You have seen all political changes, what is your impression about the present change?
I have seen all the changes in the past but we retained certain thing in the past. But, now all have been shaken badly because we have dismantled our previous good things as well. Nobody is safe. Road is unsafe and uncertain as nobody can predict who will obstruct the vehicle mobility. Government is unstable and bureaucrats are directionless. There is no institution in the country which is not shaken. There is a bizarre situation. For instance, a minister is staying home forwarding his resignation but nobody is responding. According to the minister, the reason behind his resignation is to uphold the dignity of Madhesiyas. He seemed to have accepted ministerial portfolio without keeping in mind whether it would upheld dignity of Madhesiyas or not.
What do you suggest for stabilizing the country?
I know there is a difficult path ahead. We have to build new infrastructures. Maoists should be given the responsibility in the interim government so that people can judge their performance. I had personal differences with prime minister Girijababu in the past but he is now doing quite good job and he is the politician who has the capacity to stabilize the country. He has shown a quality of statesman by leading eight party alliance. As he is old, he needs strong second man to support his efforts.
How instability is affecting bureaucracy ?
I don’t see any change in bureaucracy as it is working in similar manner like in the past. What I see is the change in the guard. Some retired bureaucrats like Dr. Bhola Chalise, who is one of my well wishers and good friend - is getting prominence. From improvement of government corporation to settlement of Melamchi water dispute, Dr. Chalise, who worked as Secretary at the Ministry of Industry, is now shouldering all sorts of responsibilities. He is over loaded. How can one person do all those things? There is a need to change old mindset of civil servants in the new context. Nobody is following the order. Udayapur Cement Industry’s board ignores the directives of Ministry of Industry and general manager of Udyapur Cement Factory does not abide by the decision of the board. We have already seen garbage crisis. With the support from India and Japan , Nepal received enough equipment to manage the garbage but we could not just dump the garbage. This shows we lack mentality more than resources. We require a new set of civil servants.
What about the law and order situation?
The crime rate has gone high but nobody seems to be worried about the common people. The Maoists are concerned about their own security and leaders of other political parties, too, are concerned about themselves. If crimes increase, people will certainly be concerned. When the country is facing these kinds of situation, leaders of political parties are busy going on foreign junket.
How do you see the development of Nepal ’s two neighbors?
Nepal ’s two neighbors are developing in such a way that they will be economic powerhouse within next decade. As both of countries are moving ahead, Nepal needs their support to bring the prosperity. As Nepal is between them, there is a possibility to develop Nepal as a Switzerland or Austria . Since Nepal shares many commonalities of interests with India , India has major responsibility to support Nepal become prosperous. It should show the big heart. India can support new government by righting off the debt owed to the Indian Oil Corporation. That would be a good gesture.
When Nepal ’s neighbors are generously supporting, how can we reciprocate ?
Nepal needs to give credible security guarantee to both the neighbors. Along with security guarantee, India also needs water and power of Nepal . Since the exploitation of water resources is in the interest of both the countries, Nepal should not have any hesitation to exploit it. As India and China are gradually coming closer and warming their relations, security worry is gradually disappearing. Last week, Indian, Chinese and Russian foreign ministers met in New Delhi . This is good sign of reducing tension.
How long has Nepal been receiving foreign aid?
The history of foreign aid in Nepal is very old. After the establishment of bilateral agreement with India , China , United States and United Kingdom , Nepal started to receive foreign aid but the early phase was dominated by grants. In early 1960s, former Soviet Union constructed a number of industries like Janakpur Cigarette Factory, Birgunj Sugar Mill, Birgunj Agriculture and Tool factory under grant. Janakpur Cigarette factory is still in operation. All others have been shut down. The India , America and the UK were also involved in the infrastructure buildings. In early period, there was no concept of taking loan.
When did the loan started to come?
After 1960s, many new educated persons like Dr. Bhekh Bahadur Thapa, Dr. Yadav Prasad Panta joined the government, after which Nepal ’s area of international cooperation opened up. Following the visit of King Mahendra to Washington, World Bank had shown its interest in Nepal . Then president of the World Bank Robert McNamara visited Nepal and lent its support. McNamara proposed to build a Karnali project and other power projects in Nepal as it agreed to invest all the money required for it. Unfortunately, it did not materialize because of internal and external complications. We missed opportunities when the World Bank gave blank check to us. Had we produced power from Karnali , Nepal would have permanent source of money. McNamara’s also wanted to see this. Although we were unable to secure loan for such projects, we demanded loan for many unnecessary projects. Thanks to frequent changes in the policy, the government could not give a vision. As a business man, I have seen many ups and downs and difficult periods but I continue to follow my own policy. Even now the situation is so bad but I have to wait to see better days. The country does not have long term policy so it suffers a lot.
Can you elaborate how we suffered?
As you know Nepal has just two neighbors India and China , our relations with India is very important. Nepal needs support and cooperation from India for fast development. In the past because of misunderstanding with India , Nepal was unable to get loan from Asian Development Bank and the World Bank for bigger projects including hydropower projects like Karnali. As a big country, India had major say in the World Bank and the ADB. Nepal ’s proposals were not endorsed in the board because of mistrust and suspicions. Our experiences have shown that we need goodwill of India to develop our power projects.
Maoist leaders have been saying that they will respect nationalist industrialists, how do you see their statements?
Although CPN-Maoist leaders including Prachanda have repeatedly said that they want to protect national industrialists but the ground situation is different. Many industries based on local raw materials and local consumption like cotton mills have already closed down. There are problems in magnesite, zincs and other many mineral-based industries. In some places, you can grow coffee but there is no market. The frequent strikes have already paralyzed the industries. In this background, how Prachanda’s vision to protect nationalist industries will materialize remains to be seen. I am encouraged by some of his statements. I want to see it translate in practice.
How do you see the present trend?
Every one wants to make easy money and no one has patience to go for long term vision. Most of the industries in the last decade were established looking to exploit the loopholes of Nepal-India Trade treaty. We have hardly made efforts to establish the industries based on locally available raw materials. This is the reason our industries have not sustained. In the last twelve years many industries collapsed. Even Nepal ’s big hotels are unable to attract tourists as our valuable times were spent in tackling political instability and chaos. Now, I think the eight parties can make difference if they wish so It is disappointing to see that the government of such wide support cannot appoint officials in universities and ambassadors in foreign missions. All are interim, as bureaucracy is under the acting secretaries.
How do you see the role of UN?
The phase of the weapon management comes to an end and the UN is now inspecting the peace process. It is a positive thing. I am very hopeful that the UN will bring peace in Nepal . As the new UN secretary general is married to an Indian, he is well aware about south Asian situations and he is somehow familiar with the region. Although there are many weaknesses in the UN system, it can be used to bring the peace in the country.
What role Nepalese working in foreign countries can play?
People of Nepal are still like a family as they know each other. Many Nepalese now are working in various international organizations in different parts of the world including Kosovo , Cambodia and former Yugoslavia . The time has come to use their talent for the overall development of the country. People like Kul Chandra Gautam should be invited in Nepal to take some responsib ility. There are many others like him.
