House panel seeks papers on ADB deal

By a Post Reporter

KATHMANDU, July 22 - A meeting of Parliamentary Committee on Natural Resources today decided to ask concerned officials to furnish all documents related to the signing of a loan agreement between the government and Asian Development Bank (ADB) on Monday.

The loan conditions mentioned in the agreement, which was reached last week, requires Nepal Electricity Authority (NEA) to hike the price of electricity by up to 30 percent immediately and review it every six months, besides taking other reform measures, according to officials.

"Today's meeting unanimously decided to summon concerned officials along with the (loan agreement) documents on Monday," the Committee President Lekh Nath Acharya told The Kathmandu Post. The meeting was also attended by secretaries of the Ministry of Finance and Ministry of Water Resources.

After reports about the ADB's "fresh pressure" on the government made headliness in newspapers last week, opposition parties started disrupting the House proceedings demanding that the government provide detail information on the loan conditions. On Thursday last week, the government signed the loan agreement of Rs 3.52 billion for NEA's Eighth Power Project.

Acharya said his committee will decide on the matter by early Monday, even before the beginning of the House deliberations.

The Committee members had voiced the need to resolve the issue through discussions in the Committee itself and not elsewhere during today's discussions, he added.

According to Acharya, the Committee can also decide on the matter since it is an integral part of the parliament with representation from all political parties. The House proceedings is due for Monday.

Talks with govt off, says Nepal

By a Post Reporter

KATHMANDU, July 22 - Leader of the Main Opposition CPN-UML Madav Kumar Nepal today said that the on-going talks between opposition parties and government have come to an abrupt end. He said the government has already been notified in writing that CPN-UML would not take part in the talks.

"We are fed up and tired with ways of the Congress government. We are not going to hold talks with the government,"said Nepal at a programme organised by Democratic National Youth Federation (DNYF), student wing of CPN-UML, to mark 22nd Pushpa Lal Memorial Day. Reviewing the achievements of Communist Movement over the last 50 years, Nepal acknowledged the importance of parliamentary democracy and "scientific" election procedure.

"There was a time when we could not digest the term election and parliamentary system. Now these precious terms cannot be discarded as capitalist and revisionist principles," said Nepal.

Referring to the early seventies' Jhapa Episode, where the then hardline Communists beheaded some landlords, Nepal said that the extremist trait of communists have now gripped the Maoists.

Nepal also called upon all communist factions for "United Communist Movement"and said that his party  is committed to Multi-party People's Democracy.

"Our 50-year-old history has taught us a lesson that mere following of Marxism and Leninism is not enough. We must learn to move in tune with the changing needs. People's Multiparty Democracy is the call of the day," said Nepal.

Khadga Prasad Oli, CPN-UML MP, said that he is willing to renounce his politburo post for the cause of communist unity. Oli further added that communists have always fought a lone war against anti-national activities. At the programme, Niranjan Govinda Baidhya and Nar Bahadur Karmacharya,founder members of United People's Front were felicitated.

Ranabhat demands House probe on Laxmanpur Barrage

By a Post Reporter

KATHMANDU, July 22 - Speaker Taranath Ranabhat today said he had proposed for an investigation of possible inundation in Banke by the India-built Laxmanpur Barrage by a joint parliamentary committee.

Ranabhat said that he made the proposal to Dev Mukherji, the Indian Ambassador to Nepal,   recently. "The people of Banke are suffering from the barrage. A joint committee of the representatives has to be made to study the intensity of the affect and seek ways to control it," said Ranabhat at a programme on parliamentary reforms.

According to Ranabhat, he had informed the Indian Ambassador about the probable affect report prepared by the Foreign and Human Rights Committee (FHRC) of the parliament. "At first, the Ambassador said that the dam's impact was not so intense. But after I told him about the report prepared by Foreign and Human Rights Committee, he accepted it."

The report prepared by the FHRC states that around 33 villages in five VDCs of Banke district are likely to be inundated by the India-built Laxmanpur barrage. According to the report, more than 1,500 people living in the villages could be displaced by the dam.

"Even in such a grave problem, India is trying to shy away from reality," said Ranabhat.

Foreign Minister Chakra Prasad Bastola has already told the House of Representatives he had asked the Indian government to resolve the problems likely to be caused by the barrage and that the Prime Minister is also going to raise the issue during his visit to India. Prime Minister Girija Prasad Koirala's visit is scheduled for August 1.

Sports Council lock horns with ministry over firing staff

By Suman Malla

KATHMANDU, July 22 - The Ministry of Education and Sports and the National Sports Council (NSC) are at loggerheads over the issue of sacking redundant NSC staff. 

The Member-Secretary of National Sports Council, Binod Shankar Palikhe, stands by his decision not to sack the workforce, specially the coaches as demanded by the Ministry.    The Ministry of Education and Sports, following the government's June 5 instruction to discharge over 6,000 jobs under various ministries effective from July 16, had instructed the National Sports Council to discharge over 570 staff deemed redundant there.

After much haggling, NSC conceded to discharge 34 staff on July 16 but showed its unwillingness to discharge any more staff.

"It may be too much of an embarrassment to sack the technical staff on the lines suggested by the Ministry," says Binod Shankar Palikhe. "We won't allow crowding of the administrative staff here in the name of so called policy of systematising government organisations."

Palikhe feels that accepting Ministry's proposal will impinge on the role of NSC, preventing it to shape its approach towards sports development throughout the country.

"The control that the Ministry wants to exercise is meaningless especially when the National Games and SAF Games are not too far away where we require more technical manpower," he added.

NSC's stand against this backdrop is intriguing, though. More so when the Ministry of Education and Sports is the main funding agency.

"For obvious reasons the Government cannot be a fund raiser for the council officials to spend in the name of sports promotion," says Joint-Secretary at the Ministry of Education and Sports, Chuman Singh Basnet. "There has to be accountability. A certain amount of restraint on the part of the council while making requests to the Government for support is necessary."

Despite several demands, the Ministry is yet to receive the necessary documents of NSC staff, he said. "The NSC officials are aware themselves of the fact that the unnecessary delay will only lead to more confusion."

Such an incident is nothing new at the National Sports Council, infamous for being one of the most over-staffed government institutions in the country with over 1,400 employees. Now the prospect in sports looks grim, leaving the council, which until now is entirely dependent on the Government support, in a tricky situation.

All that glitters is not gold at Dept of Mint

By Ram Sharan Sedhai

KATHMANDU, July 22 - Channeling of gold and silver import through Nepal Rastra Bank (NRB) effective from July 15 has made a little impact, if any, on the Nepalese bullion market. 

The newly opened NRB sales outlet for the yellow metal at the Department of Mint has been hardly noticed by common consumers. Neither the jewelers have lined up at the outlet, which only shows that the gold business is as usual.

As the prices of gold at the Department are higher than the market price, buyers prefer to buy them from local market.

Talking to The Kathmandu Post, Niranjan Ratna Shakya, President of Nepal Gold-Silver Traders' Association, said, "Since the price of gold is higher in the bank we are buying it from the local market".

Friday's price of one tola Hallmark gold at the bank remained 160 rupees higher than that of the local market and the price difference has hovered around almost the same figure since July 15. The Department has sold only 30 pieces of gold weighing 50 grams each till Friday.

Another reason for local jewellers not buying gold from the Mint is that it is selling the 24 carat gold with 50 gram pieces only. But pieces of gold weighing 16, 10, 5 and 2.5 tolas have high demand in the local market. Those who buy gold for marriage and other ceremonies too prefer buying from the market rather from the Department as it remains closed two days a week. If the bank wants to facilitate the consumers, it should sell raw gold in smaller quantity, says Shakya.

Damodar P Sharma, Chief Manager at the Department of Mint, NRB, says, "We set the price of gold slightly higher than market price to check market distortion and to control smuggling of gold".  

Justifying the cause of higher prices, Sharma says, we guarantee on weight and quality of gold. The impression of NRB emblem and encrusting of 999 Fine Gold ensures quality and weight, which also pushes up the price.

Price difference is a common practice elsewhere, adds Sharma.

Sharma says, since we do not sell gold to an individual in huge quantity and our price is almost equal to that of India's, there is no possibility of smuggling in of gold from India.

Fixing higher prices, NRB has averted the danger of sending their gold to the hands of local dealers. They could lower the market price by forming  cartel and could buy all the gold from the bank and then raise the prices. This could make the objective of NRB futile.

     If the usual  business in bullion market after mid-July is any indication, it seems that the policy has brought about a little change in the gold trade. Not quite so. The new policy has a lot of under-current effect.  It can stop smuggling out of gold. The huge amount of money spent on buying gold could be invested in productive sector. This will create employment, which in turn will result in the growth of national economy.

It is said Nepal imported gold worth over 20 billion rupees in last fiscal year but the consumption is less than two percent of the import.

Indian media had raised the issue of smuggling gold to India from Nepal, which had a 'nexus with terrorists'. Though importing gold and silver through NRB is targetted at controlling smuggling out of the yellow metal and discouraging investment in unproductive sector, it is estimated to incur a loss of Rs 400 million to the revenue.

 Both the gold dealers and officials at the bank say that channeling gold through the central bank will not make much difference in the availability of gold.

Therefore, the objective of the government to discourage smuggling out of gold and generating more revenue seems a distant dream.

The provision in the gazette regarding personal effects allows a Nepali national to bring 10 kg of gold and 150 kg of silver if he/she has stayed more than six months abroad. This will meet the demand of the market, they say.

No jobs please, we're from historic Patan City

By Razen Manandhar

LALITPUR, July 22 - The people of this historic city of Patan, once famous for their creative skills and diligence, have become less interested in taking up jobs lately, according to a study report.

Over a quarter of working-age population of Lalitpur Sub-metropolitan City are not engaged in money making business; they are living idle lives depending only on parental property, according to the report on working habits of the people of Lalitpur, prepared by Urban Management Program, supported by UNDP/UNCHS.

The report, based on 2,418 collected questionnaires from 22 wards of the city, states that the number of inactive population is very high.  It is 26.1 percent out of the active population of the city. The population of the core city area of Lalitpur is 115,000 (1991 census). The major inhabitants here are farmers, traditional artists and craftsmen.

Dr Pushkar Bajracharya, an economist, who himself was involved in devising the survey says that the figure counts those who did not work or did not try to find a job in last seven days of the survey period though they were not students, elderly or handicapped.

"It is a pity that people living in such a big city remain idle, specially in a developing country like Nepal where faster growth in all aspects is a must," he says.

One of the reasons behind their idleness was the lack of interest among the youth in their traditional occupations.  The farmer community are quitting agriculture and educated people prefer to remain at home than being involved working at low level. Besides, if a single member of the family is earning abroad, the whole family refrain from work, the report adds.

Sundar Krishna Joshi, a linguist and social worker, says that the reason for this is due to the past prosperity of the locals of Patan who feel ashamed of taking manual jobs.   Rather, they spend parental property in luxury.

The culture, which puts emphasis on feasts round the year, is also to be blamed for their habits, says Dr Joshi. "Society encourages us to spend money on festivals and feasts but ostracizes us if we work below our social status," he says.

Chirikaji Maharjan, a farmer, admits that most of the farmers who have sold their parental land do not utilize the money for income generation. "I have seen many farmers who sold off their land and squandered the sum in luxuries and feasts."

The same report shows that the city dwellers on an average spend 53.5 percent on food and energy while they spend 11.35 percent in education, which indicates their extravagant ways of lifestyle.

"Luxury is in our veins, the western influence has taught us more ways to enjoy life.  Such a habit leaves no time for productive activities," says Prof Dinesh Raj Pant, a scholar of history and culture.

However, Dhruba Krishna Deep, a writer of cultural themes, is hopeful that people may become as active as they used to be. "By attracting the youths to their traditional occupations, we can bring the brighter days back," he says.

Dr Bajracharya says that the best way to increase participation of the population in economic activities would be to commercialize the agriculture system and to upgrade the handicraft business. "Only by commercializing agriculture and upgrading handicraft business the locals of Patan can survive in this competitive age."

Sankhuwasabha vouches for Arun III

By a Post Reporter

KATHMANDU, July 22 - Locals and leaders of Sankhuwasabha district today demanded that the government open up avenues for the development of remote Arun valley in the eastern hills by successfully implementing Arun III hydel project.

Speaking at a one day seminar on 'Role of Arun valley residents for the development of Arun III hydel project' organized here Saturday by Local Development Society Nepal (LDSN), an NGO, they also warned politicians and activists not to be involved in politicing with the large hydro electricity project.

"The government is awarding power development licence to a private investment group this time," said Sankhuwasava-1 MP Tanka Rai. "It is everyone's responsibility to help create a conducive environment for the development of the Arun III hydel project."

Following a cabinet decision, the government on June 28 decided to allow Eurorient Investment Group (of companies) USA to develop the 402 MW Arun III project. Officials say the government also plans to allow the same company to develop 335 MW Upper Arun and 308 MW Lower Arun if Eurorient works satisfactorily in Arun III.

"The news that the government is finally allowing an American company to develop the Arun III hydel projects has made us happy indeed," said LDSN General Secretary Sher Bahadur Dhungana. "We don't want any politics with the project this time around; Arun III is the key to Sankhuwasava's development."

Representatives of Eurorient Investment Group USA are said to be arriving in the capital "soon" to apply for power development licence for Arun III. Eurorient is required to deposit a sum of Rs 42 million - at the rate of Rs 100 per Kilo Watt - to obtain the power development licence of Arun III, according to Electricity Regulations.

Locals today demanded that the government spent the royalty amount in the development of the Arun valley.

Detailed design works and feasibility studies of the run-of-river hydel project, which will be one of Nepal's biggest hydel projects, had been completed in 1993. So much so that the project's tender processes were already underway. But the then-government was forced to abort it after the World Bank, which had supported it for 10 years, pulled out in 1995.

Then the project's cost had been put at US $1 billion. The price, however, has not yet been reviewed.

Talking with The Kathmandu Post last week, Bishnu Bahadur Thapa, Director General at Department of Electricity Development, said he was "quite optimistic" about Arun III this time because of "the Americans' keen interest".

According to Binay Amatya of Windroz Nepal, Eurorient Group's agent for Nepal, the US-based company so far has reached a "verbal agreement" with India on the project's Power Purchase Agreement (PPA).

A 130-km road needs to be constructed to link the Arun III site with Tehrathum's Basantapur or with Sunsari's Chatara. Agent Amatya says a survey will be carried out soon to finalize the "shortest and best" access road to the project site "if things go smoothly".

Baitadi bandh against rape

By a Post Reporter

MAHENDRANAGAR, July 22 - The bazaar at district headquarters Baitadi here observed a bandh yesterday in protest against the rape of a woman allegedly by policemen on 12th July.

The strike was called by Baitadi Chamber of Commerce and Industry (BCCI) demanding severest punishment for the accused policemen. According to reports, 18-year old Mira Chand of Giregada Village Development Committee near the Indo-Nepal border was going towards India with her brother-in-law when police took them to their post. 

It was then that Sub-Inspector (SI) of Jhulaghat Police Station Guru Prasad Wagle and five other policemen allegedly raped Mira. Next day, she was made to board a bus at Jhulaghat beyond the border and sent towards India. The whereabouts of Mira is since unknown. 

According to the officials of BCCI, all this was revealed by a lady constable who is said to have heard the cries of Mira at night and found her in devastated condition folowing morning.

Meanwhile, Hom Bahadur Gurung, Senior Superintendent of Police, Regional Police Station suspended SI Wagle and head constable Amar Bahadur Dhanuk and ordered investigation in the case.

Ram Krishna Bhurtel, the Chief District Officer said that his office has sought the help of Indian administration to trace the woman and her relative.

Now Kamaiyas have nowhere to go

By a Post Reporter

DHANGADHI, July 22 - The government's decision to free Kamaiyas from bonded labour has left them homeless. And, they have nowhere to go but the streets.

In most places, landlords are forcefully driving them out.

The Kamaiyas of this district are left puzzled, says Tilak Chowdhary, Accounts Coordinator of BASE, a NGO fighting for Kamaiyas rights. "Around 40 former kamaiyas are perplexed after their landlords immediately drove them out following the government's decision," says Chaudhary.

Many landlords are letting their Kamaiyas free only after getting sauki (debt) or other equivalent materials.

A former Kamaiya of Pratappur-8, Bir Bahadur Chowdhary blames his landlord of snatching 60 kilograms of rice grains. Another former Kamaiya Ram Dulare Chowdhary of Bouniya-1 claims that his landlord took a bull-cart against a sauki of Rs 17,000.

Many landlords admit that they are free to decide whether to keep the former Kamaiyas as agricultural workers or not.

While Kamaiyas are jubilant about the decision and are savouring their freedom, they have also started questioning the government's decision. Almost a thousand former Kamaiyas from Janaki Nagar, Baliya, Pratappur, Bouniya, Joshipur, Dododhara and Chunwa VDCs who had gathered to celebrate, urged the government to manage houses for them immediately.

The government made the landmark decision on July 17 whereby it outlawed the practice of Kamaiya or bonded labour that existed in at least five disricts in the mid and far-western parts of the country.

Gurkhas take home pay identical to British counterparts: Col. Dowdle

By Nirmala Acharya

KATHMANDU, July 22 (RSS) - British Prime Minister Tony Blair has said the Gurkhas made an enormous contribution in Bosnia, Kosovo and East Timor, says Commander of  the British   Gurkhas, Nepal and Director of the Gurkha Welfare Scheme  Colonel Mark Dowdle.

An important point which is often overlooked is the revenue generated for Nepal by this unique and strong relationship, some £60m  over the next financial year, says Col. Dowdle,  adding "I am quite clear that there is a deep respect and friendship between our two countries and our bilateral relations are excellent."

Talking to RSS, Col Dowdle, who is also defence attache at the British Embassy, described the Gurkha Welfare Scheme as 'the jewel in our crown'.

 With a budget of over £5.5m this year, the aim "is to alleviate hardship and distress amongst Gurkha ex-servicemen and their dependents by rendering aid to individuals and their communities".

Giving a flavour of the work of the Gurkha Welfare Scheme where the aim is to make life better for pensioners and their families, he said between 1987 and this year they have spent Rs 43,773,009 on bursaries, secondary and tertiary education and employment training, benefiting 7,975 individuals. As an example, the 722 who benefitted from tertiary education have gone on to further employment in Nepal.

According to him, there are 11,550 welfare pensioners (those without a service pension) who are suffering hardship.

A new initiative is the Gurkha Welfare Scheme's medical scheme.  Service pensioners receive a 75 percent refund of all costs incurred for medical treatment, whilst welfare pensioners receive 100 percent. This has been most warmly welcomed by service and welfare pensioners.

The defence attache spoke of a significant commitment to all pensioners.  This is best exemplified by both the new pension rates and the excellent support provided by the Gurkha Welfare Scheme, he said adding  that since 1978, the community aid given by the Gurkha Welfare Scheme has been closely co-ordinated with His Majesty's Government.

Replying to a question about the pensions and other benefits for the Gurkhas, he said retiring Gurkha soldiers attend resettlement courses exactly the same as their British counterparts. In Nepal, they attend a comprehensive re-orientation package. British Gurkhas Nepal has recruited a Gurkha re-employment officer, whose sole responsibility is to find jobs for retired soldiers, and he has achieved some success already.

An examination of British Gurkha death in service gratuities and pensions was concluded last year, by John Spellar, the Minister for Armed Forces, he said adding, it was extremely detailed and endorsed by His Majesty's Government. 

Many ex-servicemen's organisations contributed to this valuable work. The examination resulted in equal death in service payments for British and Gurkha soldiers. Pension increases were between 107 and 185 percent, with older pensioners and widows particularly benefitting.

The minister for armed forces, in the light of these awards, made it perfectly clear that it would not be subject to further negotiation, but the pensions would be reviewed each year to compensate for inflation.  Accordingly, a team from the United Kingdom visited Nepal earlier this year to carry out the review.  The recommended increase of 11.9 percent was met in full and backdated to April l, 2000. All this has meant big raises for British Gurkha pensioners.

For examples, a lance corporal with 15 years service has received a 230 percent increase in pension (as at Jan 30, 2000 Rs 2,995.20 per month rising to Rs7,881.82 as at Aug 3l, 2000), and a warrant officer with 20 years service some 302 percent increase (as at Jan 30, Rs 4,065.60 to Rs12,301.08 per month as at 31 August this year ), a great deal for the 26,000 pensioners. The ex servicemen receive an excellent overall package.

The director of the  Gurkha  Welfare Scheme  said the doors are always open to all ex-British Gurkhas, "I think we pay 26,000 service pension accounts each year and, on top of that, some 11,550 welfare pensioners. A system exists by which ex-servicemen or their families can obtain either service pensions or welfare assistance and pensions subject to verification.  For the former, there are 3 pension paying offices in Pokhara, Kathmandu and in Itahari (the latter only opened last year)."

The staff have a new pay computer system with direct links to the United Kingdom, so they are in an excellent position to answer all service pension queries. Some 24 area welfare centres across Nepal are staffed by retired Gurkha officers, whose sole role is to look after the needs of pensioners.  So an impressive infrastructure, which has benefitted from significant financial investment, exists to help those who are entitled to either a pension or who merit assistance, he said.

About the welfare scheme for the Gurkhas, he said 62 domestic water projects are to be constructed at an estimated cost of Rs 42,432,298,  23 bridge projects at a cost of Rs 46,088,137,  nine major schools at a cost of Rs 16,313,927 and 100 minor school projects at a cost of Rs 4,000,000, six electrification projects at a cost of Rs 16,437,500, two cliff tracks and one tar pul river crossing project at a cost of Rs 240,000.

In reply to a question about the issue raised by  some ex-Gurkhas, Colonel Dowdle said, "Serving British and Gurkha soldiers enjoy the same financial awards for their service. Rank for rank, both receive the same money in their hands each month. There is a widespread perception that serving British and Gurkha soldiers earn different salaries.   This is not true.  Their take home pay is identical.

Turning to pensions, he said he did not think that most of the pensioners, who are now benefitting from the new pension rates, oppose them, adding that British army pensions are complicated and reflect  different systems. The majority of Gurkhas serve for roughly 15 years and receive an immediate pension, and British soldiers for 22 years to earn a pension. On average, a Gurkha pension is paid seven years earlier than a British serviceman's.

If British pension rules were applied to the Gurkhas, about 90 percent of Gurkhas who go on pension would not receive a pension until the age of 60, he said pointing out that   for most, the need is more immediate. This has been recognised in the arrangements for British Gurkha pensions, which are paid immediately upon retirement and these are adjusted annually to keep pace with inflation.