Smuggling pervasive, industries hit hard

By Sudeep Shrestha/Gopal Devkota

BIRGUNJ, Dec 14 -  At a time when Indian businessmen and media are complaining about smuggling of Chinese goods into India via Nepal, a field study around Birgunj - the major business-gateway for Nepal’s foreign trade - reveals that smuggling is a two-way business and that it has affected the Nepalese economy more severely.

Parsa district’s 35 km-long porous border with India, with inefficient and corrupt government officials on either side, has provided a fertile smuggling ground.

Sirsia, Inaruwa, Alawu, Chapkaiya, Bhakuwa, and Biswa Village Development Committees (VDCs) are some of the major entry points along the Nepal-India border for smuggled goods. The unauthorised trade is well-established, with thousands of local people making their living out of it. " The nexus between the local people and the smugglers is so intricate that it is nearly impossible for the manpower-constrained and inadequately-equipped revenue administration to keep it in check effectively," says Ishwor Pokharel, Chief at the Birgunj Customs.

Locals along the bordering village openly admit their involvement in smuggling. "Since there are no jobs and other occupations, we are prepared to do anything to support ourselves," says Keshab Mandal, a local resident of Inaruwa VDC, who was found smuggling bags of cement on his bicycle from India. Unemployment and poverty is so pervasive in these border villages that the illegal trade readily attracts the poor.

However, it is not only the involvement of the local people, that has sustained and fuelled this illegal business over the years. The nexus between the wealthy and well-connected businessmen and the police and revenue administration plays a more important role. It is this nexus that brings in the smuggled goods, often unchallenged, to Kathmandu which lies about 280 kilometres away from Birgunj.

A leader of a smuggling-gang, on condition of anonymity, told The Kathmandu Post that they bribe government officials at 16 different places between Birgunj and Kathmandu. The amount ranges from Rs 10,000 to Rs 30,000 per truck, depending on the nature of goods being smuggled.

During the field study it was also revealed that there are about 200 Godown in Birgunj Municipality, which are used to store the smuggled goods. These Godown hold stocks of almost every commodity including cement, steel and utensils, textiles and agro-products such as paddy, coconut, spices, and tea, among others.

The scale of this ever-expanding unauthorised trade is difficult to calculate. But trade experts claim that it stands at about one-third of the total authorised trade (Rs 44 billion) with India. A press release issued by the Federation of Nepalese Chamber of Commerce and Industry (FNCCI) a few months ago claimed that about Rs 10 billion worth of goods annually enter Nepal from India via unauthorised channels.

Experts attribute the shut-down of a number of textile industries, including Annapurna Textiles, the largest in the country, rolling mills, spinning mills, and other medium scale industries to unhealthy competition from India.

"The Nepalese economy and genuine business ventures cannot sustain themselves so long as the cross-border smuggling continues," says Rabi Bhakata Shrestha, First Vice President of FNCCI.

Then where do the Indian allegations that Indian industries are fighting a loosing battle against the Chinese goods smuggled via Nepal fit into all this? "Smuggling is a two-way business and it is the duty of the officials of the two countries to control it, but you can’t blame authorities on only one side of the border," says Badri Prasad Ojha, General Secretary of FNCCI.

Businessmen argue that if the Indian industries are so much affected by the Chinese goods smuggled via Nepal, the scale of impact of such goods should be higher on Nepalese industries since the goods enter India via Nepal.

Businessmen also point out that following the channelling of Trans-Himalayan trade through banking system since last July, imports from China have declined substantially. In the first quarter of the current fiscal year, total imports from China stood at Rs 478 million against last year’s annual import of over 4 billion rupees.

The whole exercise in India is only a pretext to check genuine Nepalese exports to India, which have tripled over the last three years, through amendment in the Nepal-India Trade Treaty, says a FNCCI member, on condition of anonymity.

Govt to set up special court to try Maoists

By Gopal Khanal

KATHMANDU, Dec 14 - The government is going to form a special court within a week to look into cases of crime against the state, according to sources at Ministry of Law and Justice.

The special court is being established especially to file cases against those arrested on suspicion of involvement in the People’s War waged by the CPN (Maoist) since five years back.

The court established under the provisions — Article (3) of the Special Court Act - 1974 and Article 85 (2) of the Constitution of the Kingdom of Nepal - will look after cases of crime against the state, drugs, foreign exchange transaction and women trafficking.

The Ministry is said to have sent the proposal for the formation of the court to the Cabinet for its approval.

The Court Management Committee formed last year under the then chief justice Keshav Prasad Upadhyay had also recommended the formation of special court to look into such special cases.

According to the source at the ministry, all the preparations for the special court are already over and it is just awaiting the approval from the cabinet.

The Cabinet is expected to endorse the proposal, submitted to it only four days ago, within this week. The Home Ministry and Ministry of Law and Justice had taken special initiatives to prepare the proposal.

The Ministry has also worked out the structure of the court, area of work and appointment of the justices. Three justices from the appellate court - Mohan Prasad Sitaula from Rajbiraj, Jagannath Pathak from Pokhara and Gyanendra Bahadur Karki from Ilam - have been recommended for the post of justices at the special court, said the source. However, decisions over the number of employees and the infrastructure of the court has not yet been taken. "We are still working out on the budget, number of employees and allowances for the employees," said the source.

The court will be established in Kathmandu for the time being and will be extended to other areas if the government deems necessary. The government is still on the lookout for proper premises in Kathmandu to establish the court.

The court can file cases, investigate and seek evidences on its own, over the cases that come to it. According to the ministry, the court can search for the convicts anywhere in the country, and inquire the cases on its own. The government can arrest and file cases against the Maoist rebels after the formation of the court.

PM opens first ever fertilizer plant

Post Report

BHADRAPUR, Jhapa, Dec 14 - The Prime Minister, Girija Prasad Koirala, inaugurated the country’s first ever chemical fertilizer factory at Duwagadhi Village Development Committee, Jhapa, amidst a function Thursday.

The Rs 260 million Luna Nepal Chemicals and Fertilizer Pvt Ltd., which started construction about nine years ago, began its test production on October 21 and full commercial production on November 8. The company’s 20 per cent share is held by Nepali businessmen and the rest by Indian businessmen.

Inaugurating the function, PM Koirala said that the government was committed to curtail the import of chemical fertilisers. He also said that the government would try to establish at least one chemical fertilizer factory in each development regions.

"At a time when the government was forging ahead for economic development, the so-called Maoists have resorted to terrorism by closing schools and killing innocent people across the country," PM Koirala said. He also asked all political parties to unite to thwart the designs of the terrorists.

PM Koirala stressed that, foreign investment would cease flow into the country unless there was peace in the land.

On the occasion, Executive Director of the factory, Ashok Subba, said that the factory has installed capacity of producing 60 to 80 thousands metric tons of chemical fertilisers (Nitrogen, Phosphorus and Potash) per year. Subba added that the factory which uses modern technology will provided direct employment to more than 600 people and more than 1000 people will be benefitted indirectly.

Nagma Mallik, representative from the Indian Embassy in Kathmandu viewed that the factory was the symbol of friendship between the two neighbouring countries. However, she suggested that Nepal should formulate clear policy as per the agreement on investment reached between the two countries in 1996.

Kirtipur Municipality to bring down TU buildings

Post Report

KATHMANDU, Dec 14 - Kirtipur Municipality,the youngest municipality in the Kathmandu valley, today decided to pull down the newly constructed seven illegal buildings belonging to the oldest university of the country, Tribhuwan University (TU).

The Municipality Board meeting held here today took the decision to this effect.

"We have waited for two whole years so that the respected university would agree to abide by law. But as TU has been neglecting our requests, we finally decided to dismantle the building," said Mayor of Kirtipur, Hira Kaji Maharjan.

The government-funded TU recently constructed new buildings without obtaining permission from the municipality to build them, which is necessary under law.

Chapter 9, clause 150 of Local Self Governance Act 2055 states that citizens and government bodies need to apply to the civic bodies with maps before they start construction of private and public structures.

Maharjan said a letter has been forwarded to TU and the municipality would wait for next 35 days before it opts for demolishing the buildings. Within 35 days TU could go to the courts if it opposes the municipality’s decision.

Previously the municipality officials requested TU administration verbally, met the vice-chancellor, wrote letters to stop TU’s construction works but in vain. TU officials could not be reached for comments.

Maharjan informed that seven buildings including those of girls’ hostel, humanities, Aryuvedic administration and others have been constructed violating the law.

Kirtipur Municipality, which abuts Kathmandu Metropolitan City, was formed in 1996 and has a population of around 45,000.

ILO launches programme against child-trafficking

Post Report

KATHMANDU, Dec 14 - The International Labour Organization (ILO) and the International Programme on the Elimination of Child Labour (IPEC) today launched a two-year programme to combat child trafficking for exploitative employment in Nepal.

The program is a part of the South Asian Regional Program on child trafficking being launched in Sri Lanka, Bangladesh and Nepal.

Sri Lanka launched a similar programme last week and Bangladesh is doing so in the near future. India and Pakistan are also expected to join the program.

The national level initiatives will be implemented via four sub-programmes in each country. The first sub-programme will raise national capability in addressing the problem of child trafficking within and outside the country. The second tests, through pilot projects, will address direct ways of preventing, protecting and rehabilitating victims of child trafficking. Programme research and documentation form an important third component of the program. The last component deals with advocacy endeavours for sub-regional cooperation and joint action.

The main focus of the project is to strengthen national institutions in combatting trafficking in children. The project will work closely with the Ministry of Women Children and Social Welfare and strengthen its capacity both at the central and district levels. The project will provide support to the Ministry in its endeavour to further strengthen the legislature of the country on the issue of child trafficking.

Over 2,000 families will be targeted and will benefit from this programme and legal capacities of local people will be strengthened as a result. It is planned that over 400 children who have been rescued from highly exploitative situations, including those who have been intercepted at borders, escaped or returned will benefit from this programme.

According to the ILO, almost 1.7 million child labourers earn wages in Nepal and almost 250,000 of these are working at risk.

The ILO focuses on issues of trafficking from human rights and labour exploitation perspectives. Its member states unanimously adopted ILO Convention 182 on the worst form of child labour including trafficking in June 1999. In total, over 50 countries have now ratified the Convention.

Second enbankment on Rapti still uncertain

By Subodh Gautam and J Pandey

BANKE, Dec 14 - The completion period of the internal survey for the proposed second embankment of the Rapti river is uncertain. The project aims to protect Nepali villages from inundation resulting from the construction of the Laxamanpur Barrage by India.

"We cannot say how much time it will take to complete the survey," Rishiram Sharma, Divisional Engineer at the Irrigation Office in Banke, said.

Technicians began a survey of the 30km-long area of the Rapti river in the first week of December. "Now, we are measuring the level of the land," Sharma said. Technicians, however, had predicted that they would complete a survey report by the second week of December. Sharma did not elaborate on the cause of the delay.

Flooding in the villages of Holiya, Betahani, Gangapur, Mataihiya and Phattepur Village Development Committees (VDCs), about 15km south-east of Nepalgunj, has become a major problem for Nepal since India built the barrage on the Rapti river close to the Nepal-India border.

According to report at Banke, an Irrigation Office a total of 2,412 bighas of land in the VDCs would be submerged and more than 9,000 households would be affected by the construction of the Laxmanpur barrage and its 13km long embankments, merely 300 metres from the Nepal-India border.

During Prime Minster Girija Prasad Koirala’s visit to New Delhi early this year, the two sides agreed to amicably solve the problem.

During the ensuing secretary level talks in Kathmandu, it was decided that India would build an embankment on the river to protect Nepali land from inundation.

The current survey is being carried out by Nepali technicians. The team is now measuring land from Laxmanpur to Kamdi after it was realised that another embankment was to be built to protect the villages from submersion.

"A joint survey of the embankments will begin after the Indian side approves Nepal’s preliminary report," a concerned official said. According to the official, the second embankment would not be built unless the Indian side fully agrees with the Nepali report.

In the statements made by former Indian Ambassador KV Rajan and incumbent Ambassador Deb Mukharji before and after PM Koirala’s Delhi visit, doubts were expressed that the Indian side would be ready to assist in the building of the second embankment.

Both Indian envoys had denied that the Nepali land would be submerged due to the embankments.

During his visit to Nepalgunj, Indian envoy Mukharji said that the submersion issue had been made into "a mountain out of a mole-hill."

Authorities from both the countries have so far put forward no concrete plan of action to resolve the inundation problem.

Locals are not confident that if the second embankment is raised, the inundation problem will be resolved, "I do not believe that there will be a second embankment," Ujir Darji, a local from Holiya VDC said.

India started construction of the 284m long barrage in 1981 and completed it in 1985. The 13.5km long embankments were completed last year.

KMC composting plant rusting despite garbage pile

By Razen Manandhar

KATHMANDU, Dec 14 - The Mayor of Kathmandu Metropolitan City (KMC) Keshav Sthapit never forgets to demand 200-ropani of land from the government whenever he addresses a programme. He wants the land to establish a composting plant in a city overburdened by 350 tonnes of garbage accumulated daily. Meanwhile, a 16-year-old composting plant with a capacity to produce 60 tonnes of manure daily is lying abandoned in the KMC office premises itself.

The Solid Waste and Sewerage Management Project imported a composting plant from an Indian company in 1984 at cost of Rs 5.5 million. The project managed the garbage of the newly-emerging capital city for several years under the German assistance.

Nowadays, drug addicts use the huge apparatus left idle on the municipality premises as a hideout and rag pickers use it for storing their wares.

It produced as much as 40 tonnes of manure daily in 1990. After the political change of 1990, locals started to raise their voices against the plant, saying it spread a foul smell in the locality. The project stopped operating the plant and ultimately it phased out without proper handover.

"Everything was okay until the movement of 1990. After that, people made an issue out of the plant for their political gains," said Bishombhar Lal Pradhan, under secretary for solid waste management, Ministry of Local Development (MLD).

Pradhan was associated with the project in those days.

During those days, the manure produced by the plant was very popular among the local farmers as well as those from Lalitpur, Thimi and Bhaktapur. Pradhan said that demand for manure was so high that the traditional farmers had to queue for their manure.

However, producing manure for the sake of garbage management was not as practical as it sounds. Sanjeev Bajracharya, managing director of Social, Environment and Engineering Concern Pvt Ltd, said that though it helped quite a lot to keep the city clean, it was not economically feasible.

"You can repair the plant and run it again now. But still, composting the garbage and making money out of it is not a lucrative idea. For the production cost of one tonne of manure was around Rs 1,000 but we had to sell it at Rs 250 per tonne," he said. Bajracharya was one among those who played key role in establishing the plant in Kathmandu.

But, the KMC officers say that the plant is completely useless. Padma Sunder Joshi, the co-director of Kathmandu Valley Mapping Programme said, "It should be dismantled and sold in pieces.

Still, MLD’s Solid Waste Management and Resource Mobilisation Centre (SWMRMC) is taking steps to make the machine functional again. According to Devi Nath Subedi, the general manager of SWMRC, the MLD is working on a plan to use the abandoned plant.

"We have recently examined the plant. It has only rusted and one screening part is missing. We have not yet examined the maintenance cost but still, we are committed to repair it soon," he said.