‘Lack of infrastructure hindrance to development of hilly region’

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KATHMANDU, Aug 28 – Finance Minister Dr. Ram Sharan Mahat has said that lack of basic infrastructure, right policy and proper planning, in addition to inadequate market access, has hindered the development of the mountainous and hilly regions of Nepal.

"However, the social indicators are improving faster than that of the rest of the areas," Dr. Mahat said. He added that the hilly regions have untapped potential because of the rich agro-forestry and bio-diversity vis-à-vis the rest of the Asian sub-continent.

Dr Mahat was speaking at the inaugural session of a national seminar on "A study on Rural Hill Potential and Rural Service Delivery Systems" jointly organized by the National Planning Commission (NPC), International Fund for Agriculture Development (IFAD) and the German agency GTZ.

The workshop was organized to discuss upon the findings of a recent study conducted by SAPPROS. The study was a part of two studies conducted by SAPPROS, one being the Terai Options funded by the World Bank and the other being the Hill Options funded by IFAD.

Dr Mahat stressed the role of various agencies in the accelerated development of the hilly regions. He expressed happiness over the shift in the perception of the donor communities who are now focusing on improving the rural living standards.

"The agencies are more efficient and cost-effective as compared to the government. The government as a service provider is poor," he said.

Furthermore, Dr. Mahat emphasized upon the need for higher investment in hill infrastructure. However, considering the expanse of area that needs to be catered to, he said that low cost technology and participative approach to management is a must for sustainable development in the hilly regions.

"Nepal’s development challenges are unique. Hence, unique ways must be sought for development," said Dr Mahat.

On the same occasion, Hari Shankar Tripathi, member of the NPC, reiterated that the basic objective of the government is poverty alleviation that is well reflected in the Ninth Plan, which ends next year.

"Since the Nepalese rural areas have a disproportionately high levels of poverty, there is a need for a sustainable poverty alleviation endeavors in these regions," he said. "The need to tap the potential that exists in these areas."

So far, faulty policies and inappropriate institutional arrangements were responsible for restricting the development of the hilly regions, he said.

Similarly, Srikrishna Upadhyay, executive chairman of SAPPROS, highlighted the findings of the study. He said that there are great potentials in hills and mountains of Nepal based upon local comparative advantage, which if properly exploited could aid in the reduction of worst forms of poverty.

Upadhyay also said that there is a tremendous possibility of producing high value crops such as off season vegetables, fruits, herbs, plantation crops, livestock and the development of micro-enterprises in the hilly and mountainous regions.

Finally, he informed that on the service delivery front, the finding of the study is depressing. Weak institutional arrangement, faulty policies and poor service delivery needs to be rectified.

Representatives from the different donor communities, non-governmental organizations and various government officials are taking part in the two-day seminar that begun Tuesday.

Colgate denies strike, admits labour strife

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KATHMANDU, Aug 28 - Colgate Palmolive, a multinational toothpaste manufacturer, which has a factory in Hetauda, has refuted reports that its employees are on strike.

In a letter addressed to The Kathmandu Post, the company states, "no Colgate Palmolive employee is at strike at the Hetauda manufacturing facility." Instead, it states, "certain external elements have...disrupted the normal schedule by resorting to stopping employees from entering the factory."

The denial comes after reports of the strike in its plant in Hetauda have emerged in the local press, including in The Kathmandu Post. According to our reporter in Hetauda, the company employees there have been waging an agitation since Sunday after the management sacked nine out of the 32 contract employees at the factory.

But Colgate Palmolive says no employee has been sacked, rather the company has selected the 23 contract employees out of the 32 Saturday, on the basis of their performance. "The decision was taken in line with a recent decision to regularise jobs that were being done on a contractual basis," said the company.

However, in a separate letter addressed to the Chief District Officer of Makwanpur and other government and business organizations, Colgate Tuesday acknowledged that the nine "rejected" employees had "physically prevented other employees from entering the factory premises... even warning the other employees of dire consequences."

The factory, set up with investment of Rs 600 million, presently employs a total of over 250 employees.

Although the statement says that there is no strike, it states that local employees’ union is demanding that all 32 employees be taken on permanent roll. "The stand of the union has resulted in loss of production at the ancillary units," acknowledged the statement.

Meanwhile, our correspondent from Hetauda adds that production is yet to resume. Also, the labour agitation at the company has led to the closure of at least three other ancillary packaging industries, which depended on Colgate Palmolive orders.

Insurgency bled tourism industry: Wagle

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LALITPUR, Aug 28 - Minister of Works and Physical Planning Chirinjibi Wagle admitted that the activities of the Maoists have badly affected all the sectors including the tourism industry. But the upcoming talks between the government and the Maoists would resolve the problem, he expressed hope.

Wagle, who is the is the coordinator of the task force formed by the government to hold talks with the Maoists, was speaking at the half-yearly general meeting of Hotel association Nepal (HAN) here Tuesday.

Speaking on the occasion, hoteliers complained that the tourism industry has been hit hard by the Maoists’ "People’s War", hijacking of Indian airlines aircraft, anti-Hritik Roshan demonstration, frequent general strikes and the Royal massacre.

Minister Wagle assured the entrepreneurs that the talks would bring an end to the problem. And the talks would be successful as the 23.2 million people are in favour of peace, he said.

Narendra Bajracharya, president of HAN, also castigated the government for increasing the electricity tariff at a time when the tourism industry suffered badly. He also said that hotels have to pay revenue and donate to political parties even when they are in loss.

He also said the that recent agreement reached between the All Nepal Women’s Association (ANWA) Revolutionary could not be applicable to the touristic hotels and restaurants.

Prakash Shrestha, first vice president of HAN expressed the views that licenses to new hotels should not be issued at a time when the industry is nose-diving. He also expressed his ire over the flight suspended by Royal Nepal Airlines Corporation at peak season of tourist arrival. Entrepreneurs also warned the government that if the proposed Income Tax Act is not simplified, it cannot be implemented successfully.

Experts participating in a workshop on Hotel Industry and Income Tax Bill, organised on the occasion, said that the late fee and penalty proposed in the bill is very challenging. Lal Mani Joshi, deputy director general of Inland Revenue Department, said that it is but natural for income tax act to be more complex than other acts but the difficulties would be removed through discussion and interactions. It is an international practice that the late fees and penalty are generally higher, he added.

Advocate Anil Sinha said that due to the complexcity in the proposed income tax bill, the lawyers would benefit more from it than the government and the taxpayers.

Smuggling in of chemical fertilizers stirring smoothly

By Bikas Thapa

BIRATNAGAR, Aug 28 - Chemical fertilizers are being smuggled into the country from bordering Indian towns through the customs offices and minor customs offices in the eastern districts of Nepal.

Unavailability of chemical fertilizers during peak season and high price has given rise to the illegal import of sub-standard chemical fertilizers from adjoining towns of India.

According to sources, an estimated 15 trucks of such fertilizers are smuggled into Nepal through Rangeli of Morang district, Biratnagar Customs Office, Dainiya, Kauwakhoch, Bhantabari and Sahebgunj of Sunsari district and Kakarbhitta, Bhadrapur and Gaurigunj of Jhapa district.

Though farmers are aware of the low standard of such illegally imported fertilizers from India, they prefer it due to its low price and easier availability.

A sack of 50 kg DAP provided by the government costs Rs 975, Urea Rs 699 and Potash Rs 1,390 while, the same illegally imported from India fertilizers per sack cost Rs 500, 750 and 800 respectively.

Businessmen other than the licensed dealers are involved in importing such fertilizers from the abutting towns of India, says Daman Bahadur Dhungana, Chief of District Agriculture Development Office, Jhapa.

Some local businessmen who wield political clout are freely importing the substandard chemical fertilizers, which are mostly sold to the hilly areas of the eastern districts, where there is scarcity of chemical fertilizers. They transfer the fertilizers in bicycles through the customs offices, collect at different places and later ship them to different parts of the eastern region.

A dealer in chemical fertilizer here, requesting anonymity said, "The smugglers bring in low quality fertilizers from India in an unrestricted way. They either bribe the customs officials or threaten them and sell those fertilizers to naive farmers".

An Indian fertilizer dealer at Rangeli, Morang has 40 bicycles who pays wage to the locals and each of them carries four sacks of fertilizer in one bicycle from Nakubadi of Indian town to Rangeli. Later they are transported to other parts, says a local farmer.

Dharma Raj Shakya, Chief of Agriculture Input Corporation (AIC) Biratnagar Branch, says there is possibility of smuggling in of Indian fertilizers as the Indian government is providing subsidy in fertilizers.

"Had the government given subsidy in chemical fertilizers, the situation would not have arisen. The importers mix low quality fertilizers in such imports, but the packaging belies the customers," he reveals.

He adds that such substandard fertilizers not only reduce productivity, but also affect the soil life. A few farmers also say that their productivity has gone down by as high as 30 per cent after they began using the cheap fertilizers illegally imported from India.

The sources say such fertilizers are mostly being smuggled through Biratnagar customs office but, Customs Chief Madhav Raj Pokharel says that they have not noticed such illegal import so far.

"We do not know about the smuggling in of such fertilizers, but if we find it we will take action against such importers," says he. We examine every import whether they meet the requirement set by the directives issued by the Ministry of Agriculture and Cooperatives, he adds.

However, he says that minor customs points do not have such mechanism. So they might not be able to trace whether such fertilizers meet the requirement set by the government.

"I have heard that such fertilizers are being imported through Rangeli, a minor customs office," he admits.

Tej Pal Agrawal of Manoj Enterprises, a dealer of chemical fertilizers, says he has also bought such fertilizers but in a small quantity. Such fertilizers mostly come through Rangeli customs point and distributed to other areas, he adds.

"I have bought only 3/4 sacks of such low grade fertilizers, which I sold at Rs 440 per sack of urea," says he.