Maoists kill 4 policemen

CHAUTARA, Sindhupalchowk, July 15 (PR)- Four policemen were killed in a clash with Maoist rebels in Thokapara VDC-2, five hours walk from here, late Friday, according to police sources.

The rebels attacked a police post in Bag Bhairab in Thokapara at about 1 a.m. Eleven policemen, including an Assistant Sub-Inspector (ASI), returned the fire. At 3 a.m., the Maoists hurled bombs and the cops fled, taking whatever weapons they could carry with them.

In the continued rebel firing, four policemen were killed and seven, the ASI among them, were injured. The injured have been taken to Kathmandu for treatment. The dead are Constables Arun Thapa of Chitwan, Padam Puri of Sindhupalchowk, Om Gurung of Syangja and Tika Prasad Sapkota of Dolakha. While the first three died on the spot, Sapkota succumbed to injuries in a nearby Ayurved Hospital.

The rebels had reportedly warned the villagers minutes before the attack not to venture out of their homes. There were no reports of any Maoist casualty. Police declined to comment on the scale of loot. Sources said only two rifles were recovered.

Garbage row talks fail
Police baton-charge local rioters

By a Post Reporter

KATHMANDU, July 15 - Deputy Prime Minister and Minister for Local Development Ram Chandra Poudel held talks with the locals of Jorpati, who are protesting the government move to dump capital's garbage along the bank of Bagmati river, at his office today.

"The meeting ended inconclusively," said a Ministry of Local Development official, seeking anonymity. "They held heated discussions for hours...They are due to meet after two days."
He said besides Poudel, the meeting was attended by CPN(UML) lawmaker Bidhya Bhandari, Local Development Ministry Secretary Uday Raj Soti, Chief of Solid Waste Management Council Kul Prasad Marhattha and at least a dozen representatives of the Agitation Committee headed by Jorpati VDC Chairman Gopal Baral.

While the locals expressed concern on the environmental hazards likely to be posed by the garbage dumped along the bank of the holy river, officials and DPM Poudel tried to convince the locals saying that there will be "no environmental hazards at all", according to him.

He added, "Bidhya Bhandari later called on the local representatives to help settle the garbage problem...The locals have said that they will meet next time. They might agree."
Earlier in the day, the locals took out a protest rally at Jorpati chowk, eyewitnesses said. There were some 300 locals, belonging to different political parties and organizations, in all and they were holding placards denouncing the move.

A riot broke out later at about 9 in the morning when the police intervened and tried to disperse the crowd by charging batons, witnesses said, adding three policemen sustained minor injuries in the ensuing fracas.

Police arrested eight locals who pelted stones at the police, but were later released after DPM Poudel told police to do so.

Officials said over 30 garbage trucks have been vandalized since the locals began protesting the move since Tuesday.

The government plans to dump the capital city's garbage along the bank of the river along the 8-km section (Guheshwori-Gokarneshwor) in a systematic manner and construct a road over the garbage later.

Tonnes and tonnes of garbage has piled up in the city's major thoroughfares, prompting people to fear an outbreak of epidemic in the wake of monsoon season and "scaring the tourists away", since the deadlock began early this week.

The government's search for a dumping site is on since a 15-year-old dumping site at Gokarna filled to its capacity. Negotiations were also on with the locals of Syuchatar VDC west of the city, but that again is in limbo following locals' protests. The government's search for a long-term dumping site is on since years.

Lack of IT policy shies away investors

By Pramod Poudel

KATHMANDU, July 15 - Despite the government's repeated pledge to create a congenial environment for the development of Information Technology (IT) in the country, foreign investors are threatening to withdraw citing lack of proper policy.

A handful of multinational companies, which believed the government's assurance to bring IT policy immediately a few years back, have become frustrated to the extent of withdrawing their investment in the country.

"We are here for the last three years but we saw no policy except for assurances from the government," laments Bipin Bhattachan, Operation Manager at Pilgrims Asia.

The lack of policy has created a serious problem for the companies working in Nepal as there is no law to recognize their products that are produced without any physical existence and exported through wire or in very small sizes through courier companies, without showing its trail of movement.
As such the software companies that are exporting their products like software related services, medical transcription, digital mapping, GIS (Geographical Information System), remote sensing and other data related items are confused how to prove their export status to the government.
The existing Finance Act 2056 (schedule 6 section 21), that governs exports, acknowledges export only if the goods cross the border physically and for that a legitimate bill of lading, custom declaration form and letter of credit is obtained beforehand.

This provision can not be implemented in the case of computer software related products.
The government acknowledgement would not have affected businessmen, if they did not have to claim tax facilities from the government. For legitimate export activities no tax is levied in income, except for the 5 percent personal income tax started from this fiscal year.

The existing companies exporting software from the country are Pilgrims Asia, Himalayan Info-tech Services, Geo-spatial Systems, Meiken Digital Techonolgy Systems and Unlimited Software Networks.

However, the introduction of IT policy would not only address the tax problems of the businessmen but would also have strategies to develop human resources in the country. At the same time, it would also facilitate banking recognition, electronic transfer of money, e-commerce, e-governance, one-window policy for IT industries, universal access and hosts of other issues.
Despite a long delay in the introduction of the policy, the government seems serious in its latest announcement. Minister for Science and Technology, Surendra Prasad Chaudhary told The Kathmandu Post that the policy has reached into the final draft stage and would be coming within a few weeks.

He said the policy would be comprehensive and would cater to the needs of businessmen as well as for institutional development. He even said that government is in a position to upload the drafted policy in the Internet for public discussion.

"Wouldn't it be suitable at a time when government is talking about e-commerce and e-governance,"
In the same context, member of National Planning Commission (NPC), Dr Ramesanand Vaidya says that efficient bureaucratic services and skilled man-power within the country are more important than the issue of tax alone.

Vaidya said the new policy would develop the nation with the cultivation of 'Internet economy.'

Costly power deal break the back of NEA

By Surendra Phuyal

KATHMANDU, July 15 - On July 10, Nepal Electricity Authority (NEA) announced that load shedding had come to an end, even before the 60 MW Khimti I hydel project developed by Himal Power Limited (HPL), began commercial operation.

Indeed, bringing an end to load-shedding and frequent power outages is a moment to feel relieved. More so, in a country like Nepal where people have had enough of load-shedding over the years, her vast hydro power potential notwithstanding.

But things are not so rosy at offices under Ministry of Water Resources and, more importantly, at NEA, the state-owned entity responsible for generation, transmission and distribution of electricity, despite the "great feat".

The reason: NEA officials and the government representatives in the past signed Power Purchase Agreements (PPAs) with private power developers at an expensive rate; according to the PPAs, NEA is required to cough up almost 40 percent of its annual income of over Rs 7 billion to the private power developers.

"The per unit cost of electricity agreed upon in the PPAs appear very costly now," says NEA Executive Director Bishnu Bam Malla. "The costs are such that we are now required to pay about Rs 3 billion to the private companies" with whom NEA started, and will soon start, to buy power.
Take for instance, the PPA that NEA reached with HPL and other donors some seven years back, during the tenure of former water resources minister Laxman Ghimire. NEA agreed to buy the Khimti I power at the rate of 5.9 Cents (which has increased to 6.9 Cents (Rs 5) now due to rising inflation) per unit.

NEA insiders recall that the cost was re-determined after Asian Development Bank, International Financing Corporation (IFC), and other financiers "suddenly disagreed" with the rate fixed in a previous agreement.

"The rate was fixed at 5.2 Cents (Rs 4) in the previous agreement," says an official, who attended the 1994 meetings. "But they later rejected the previous price...and again called us for re-negotiation in Manila."

Likewise, another PPA was signed later between the government and Panda Energy USA, Harja International and HPL, who are jointly developing 36 MW Bhote Koshi hydel project - which is expected to be complete sometime this year.

According to officials, the Bhote Koshi PPA was reached during the tenure of former water resource minister Pashupati SJB Rana, and the price was fixed at 6.96 Cents per unit. The price may go further up to 8 Cents (Rs 6) given NEA's high power leakage rate, they say.

High price of the power is not the only headache of the NEA officials. "Besides, we are required to pay in Dollars...and as the inflation rises so does the price," Executive Director Malla, who was a junior official during the PPA signing, says.

The per unit electricity price of other projects in the pipeline, which are being developed by NEA itself, however, are cheaper by as much as 40 percent compared to that of Khimti I and Bhotekoshi.
The per unit power price of 14 MW Modi stands at 4.1 Cents (Rs 2.80), 6.2 MW Puwakhola at (3.4 Cents) Rs 2.38, 144 MW Kaligandaki A at 4.9 Cents (Rs 3.50) and 20 MW Chilime at 2.9 Cents (Rs 2.10). Chilime is being developed by Nepali financial institutions.

Malla insists that both the 20-year PPAs (Khimti I and Bhote Koshi) have to be reviewed for good. "We have no way out but to review the PPAs at any cost," he says.

But F. Peter Harwood, Advisor and Consultant of HPL who remained the company's General Manager for over five years, does not like to make frank comments.

He, however, says: "Re-negotiation of the tariff rate (agreed upon in the PPA) would be something that should involve ADB and other financiers."

(Khimti is funded by equity provided by Statkraft SF, BKK, BPC, ABB & Kvaerner and a number of Nepali counterparts, according to HPL. Additionally, loans were provided to HPL by ADB, IFC and NORAD.)

Other officials, however, say that the PPAs had been signed "in a hurry in order to get rid of load shedding", and that frequent changes in government - and subsequently in bureaucracy - "dampened things".

However, "we have to take lessons from the past and should not repeat such mistakes in future, say, while signing PPA of Arun III and other hydel projects which will soon be in the pipeline," says a former NEA head.

Pension still unfair, say ex-British Gurkhas

By a Post Reporter

KATHMANDU, July 15 - The recent hike in the British Gurkha pension is "still unfair" and does not quite clarify the status of the Gurkhas in the British Army, said a Gurkha Army Ex-Servicemen's Organization (GAESO) official today.

Yam Bahadur Gurung, General Secretary of GAESO -- which has spearheaded the battle for pension parity in the British Army -- also accused the British government of "racism" for pegging the British Gurkha pensions based on the poorer living standard of the Asians.

"The recent hike, which the British say abides by Nepal's inflation rate, is still low compared to the British soldiers," he told The Kathmandu Post. "Above all, the British officers like Col. Mark (Camp Commanding at British Gurkhas, Kathmandu) who are deputed in Nepal are still receiving higher salary which is not according to the Nepalese living standard," Gurung said after completion of a one-day interaction programme organised here by GAESO today.

Gurung added that the British "are still unclear on whether they (the British) view Nepalese Gurkhas as part of the British Army or just mercenaries."

"The entire Gurkha pension problem erupted as the British officers have not taken true information regarding the Gurkhas to the British parliament," he said.

The British government had recently announced an increment of 11.9 percent in the pension being drawn by former British Gurkha soldiers. The revision, that will take effect from April 1 this year, is to apply to the Gurkha Retirement Pension, Gurkha Service Pension, Gurkha Disability Pension and Gurkha Resettlement Grant.

Earlier in the GAESO forum, representatives from various organizations including political parties, human rights activists, students, writers and intellectuals urged GAESO to pressure the Nepal govt to resolve the pension parity issue. They also showed concern towards the present Nepali Congress government's "inadequate measures" to resolve the issue.

"Political parties need to take up this issue (pension parity) with more sensitivity...The more we try to hide, the worse it will get," said Surendra KC, an academician. "It is actually Nepal's discriminatory policy that is not allowing GAESO's demands to be fulfilled."

Britain maintains that according to the tri-partite agreement signed by Nepal, India and Britain, the remuneration of Gurkhas employed by the British Army is pegged against the Indian Army's Pay Code so as not to adversely affect Nepali recruitment in the India Army. GAESO, however, says the agreement doesn't stop Britain from addressing the issue of pension disparity.

Speaking on the occasion, Prof. Tulsi Ram Vaidya, a historian and the chairman at the function, urged that the issue be dealt "more diplomatically". Some 55 people had attended the function.
At the program, representatives from major political parties said they have been supporting GAESO's "just demands". Organizers said, the Nepali Congress still failed to put forward a "clear vision" on their demands. Though Sukra Raj Sanyog, an MP representing NC at the Upper House, spoke on the occasion, he was silent on NC's official position.

Since the past five years, Ex-Gurkhas have been demanding payment for those who are dismissed from service, pension payment at par with their British counterparts, better employment opportunities for their children, and right to British residential visa.

Its other three demands include setting up a Gurkha Welfare Fund to assist children of Gurkha soldiers and their families and equal treatment for in-service Gurkhas.

Extension of trolley bus service on cards

By Damakant Jayshi

KATHMANDU, July 15 - Kathmandu Valley is going to be extensively connected by trolley bus service with the help of a Chinese company, according to an official with Nepal Transport Corporation (NTC). The capital's trolley bus service was established 25 years ago by the Chinese government.
The trolley bus will also make its debut in eastern Nepal, connecting Biratnagar with Dharan with a 44 km route. In the Valley, the service will be expanded from the current 13 km to over 53 km.
The NTC official said the negotiation was almost complete and the agreement pertaining to the expansion and addition project was likely to be signed "by July 30 or a few days later."
If all goes well, said the official, there will be trolley service all around Ring Road while a second phase will cover Satdobato to Gongabu via Lagankhel, Jawalakhel, Thapathali, Tripureshwore, Ratna Park, Lainchaur, Sorhakhutte and Balaju.

Shorter extensions will be from Kalanki to Tripureshwore and Chabahil to Teenkune to join the existing 13-km route from Tripureshwore.

The Chinese government-owned Dong Fong Electric Corporation (DFEC) has completed a feasibility study and submitted its report to the Nepalese government.

DFEC has reportedly quoted a total expenditure of Rs 1.8 billion that covers both the Valley's expansion and the Biratnagar-Dharan section. Of this, the Chinese investment will amount to 90 percent while Nepal meets the remaining 10 percent with its domestic resources.

Kiran Kishor Ghimire, Manager of Trolley Bus Service admitted that the feasibility study report has been submitted to the government. "But it is not the final document," he said.

Ghimire added that the government, in principle, was "positive" on expanding the trolley service but it still had to decide on the modalities before the final agreement.

The investment capital, nature of ownership and role of the investor are yet to be worked out. Ghimire said the foreign investor might not necessarily be the Chinese.

The Company Act 1999 - which effectively turns the government-owned Janakpur Railway and Nepal Transport Corporation (which oversees the trolley bus service) into a company - give the management a greater say over its affairs.

The employees, however, are opposing the move to make NTC a company, which will be able to issue shares in the market and thus attract private sector.

Another big question is whether NTC, which has been poorly managed over the years, will be able to handle the expansion.

Pointing out the pathetic condition of the 10 new trolley buses which were brought just last year, a regular irate commuter of trolley bus from Koteshwore says, "Nepal simply does not deserve any foreign aid,". "The Chinese should not invest in any new project". "The new radio in the buses stopped functioning after just two days," he added.

Nepali grooms, Indian brides preferred

By Sujeet Mahat

MALANGAWA, July 15 - People living in this region of Terai prefer to marry their daughters to Nepali men rather than Indians from the bordering Indian State of Bihar basically due to their high demand of dowry and deteriorating law and order situation in the State.

For instance: Ram Babu Singh of Netragunj Village Development committee-6 married his daughter to a man from Motihari district in Bihar. But she soon returned home because her husband's family committed excesses on her for bringing less dowry. "My husband and mother-in-law used to beat me (for bringing less dowry) and they didn't even gave me any food to eat," says the dowry victim. "I would never return there."

Likewise, the father repents for having his daughter married to a Indian. "Had she married a Nepali man she could have claimed share of his property."

Chairperson of Gamharia VDC Kashi Raya has married the eldest of his five daughters to a Nepali man because he is aware of the inflictions all his four aunts faced for marrying Indians. "They (Indians) seek high dowries and if they commit injustice upon our daughters we can't even bring them to book," he says.

"An unemployed Indian engineer was seeking Rs 800 thousand Indian currency for marrying my niece," says Jawahar Lal Raya, a local politician. "Ultimately she married a working Nepali engineer for just Rs 500 thousand Nepali currency."

Earlier, illiteracy and unemployment amongst the Nepali Terai people used to make it hard for the parents to find suitable groom for their daughters but the situation has changed now. "Now any parents can find the man matching their daughter's calibre," says Ram Dev Thakur, a local teacher.
Some Indians even marry Nepali women merely to get Nepali citizenship says Thakur. "Many father-in-laws have been compelled to arrange the citizenship to their son-in-laws by identifying them as their sons."

Meanwhile, there are many Nepalis who prefer to marry Indian women hoping for more dowries than they expect from Nepalis. VDC Chairperson Raya claims that this year alone more than a dozen men from his VDC have married Indian women for handsome dowries.

Baidhyanath Rauniyar wants to marry an Indian woman because one of his neighbours has recently received IRS 700 thousands for marrying an Indian woman.

Rameshwor Raya, a local has a different reason to prefer Indian daughter-in-law: He says that he was compelled to seek Indian girl for his son because he couldn't find literate girl to match his son. He, however, is of the opinion that such trend is on the decline.

Similarly, Indians are now seeking Nepali men for their daughters because they demand lesser dowry than the Indians.