Govt to close down Hetauda TF

By Pratap Bista

HETAUDA, Feb 2 - The government has decided to close down the ailing Hetauda Textiles factory from February 12, 2001, making its 1,092 employees jobless, of which almost half of them are women.

A Cabinet meeting on Wednesday decdide to close down the factory and release Rs 250 million to pay the long-pending salaries of its employees.

According to Bijaya Raj Upadhyaya, Acting General Manager of the factory, a committee comprising of representatives from the Ministry of Finance, Ministry of Industry, Commerce and Supplies and the Management Board of the factory will be formed to make the payment to the employees.

The Ministry of Industry, Commerce and Supplies has sent directives to the factory to freeze its bank accounts, halt the sale and purchase of any goods and material and stop external transaction.

Established in 1975 with the technical and financial assistance from the People’s Republic of China at a cost of around 200 million rupees, the factory had been operating off and on for the past four years on account of running capital.

However, it completely closed from December 6, 2001. Employees of the factory took to agitation on January 7, 2001 with two-point demand to reopen it ensuing the complete closure.

Their demand were either to provide 13.19 million of rupees and diversify the products of the factory making agreement with some foreign company or to close down the providing its employees better pay and benefits and clearing the liabilities to the employees at one go.

A committee was constituted with a view to facilitating the factory to resume its operation including representatives from various local organizations and political parties.

As a result, the Ministry of Industry, Commerce and Supplies asked the striking employees to postpone their agitation and assured them of fulfilling their demand within 15 days. They had announced to completely halt the traffic, if their demands were not met within February 2, 2001.

The 35-year-old textiles factory has not been able to pay the salary of its employees for the past six months and it has also not paid for the employees’ insurance and provident fund for the past 28 months. Similarly, due to financial crunch, it has not paid its water and electricity tariffs and has about 130 million rupees as outstanding payment to various other organizations.

Banking & Financial Acts to be amended

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KATHMANDU, Feb 2 - Governor Dipendra Purush Dhakal has said that the Nepal Rastra Bank Act, Nepal Commercial Banks Acts and all the Acts relating to banking sector will be tabled in upcoming session of the parliament for amendments.

He also said that all the rules and regulations governing the banking sector will also be adjusted. He was speaking at a program organized by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) to discuss the banking problems facing the commerce and industry sector here Thursday.

The Governor said that if the financial sector could be reformed, an additional two per cent economic growth could be achieved. Without the reform of this sector, the future of the country is bleak. He pledged to set up credit rating agency for the reform of the banking and financial sector. Once the banks attain financial self-sufficiency, the interest rates will go down, he added.

For the expansion of financial sector, the private sector should move ahead and the banks should have sound banking practices, he said, adding that the central bank is conscious of not letting industries get sick because of the banks. He also informed that the central bank is going to bring out guidelines incorporating the decisions regarding the foreign exchange policies.

Acting President of FNCCI, Rabi Bhakta Shrestha said that FNCCI welcomes the financial sector reform program put forward by the central bank and extend necessary cooperation to this effect.

Shrestha also expressed the hoe that the reform program will remove the banking difficulties facing the industrial sector and to heed the suggestions of the private sector taking it into confidence. He also said that the banks are pressing hard the ailing industries to repay the loan while they are weak. But time to think how such industries could be revived and make them able to repay the loan has come, he said.

Shrestha suggested to immediately reform the spread rate, delay and complications in the banking sector, foreign exchange act, regular inspection of the financial sector and evaluation.

Second Vice-President of FNCCI, Diwakar Golchha stressed on the need of regular interaction between the Nepal Rastra Bank (NRB) and the Federation as they have a crucial role to play in the economic development, employment generation and to curb the decline in investment and slowness seen in the financial sector.

Golchha pointed out the need of clearing agent to regulate Nepal-Tibet trade and to represent the FNCCI in the NRB board of directors.

President of FNCCI-Employers’ Council and ex officio Vice-President Rajendra Kumar Khetan said that FNCCI has been supporting the financial sector reforms put forward by the central bank at various forums. He emphasized on incorporating the suggestions of the Federation for the reform on Nepal Rastra Bank Act, Foreign Exchange Act, Financial Sector Act and while formulating economic policies.

Khetan requested the Governor to establish offshore bank and export/import bank in collaboration with all operating banks industry promoting banks and organizations like ICICI, IDBI, IFCI of India with the participation of the private sector, on the occasion.

President of Monetary and Banking Committee of the FNCCI, Laxmi Bahadur Shrestha expressed the views that the private sector has an active role to protect the banking sector. He also stressed the newly opened banks to reach outside the valley instead of operating in the capital only.

Various speakers stressed on amending the existing rules and regulations relating to the banking sector, to make credit cards easily available, to have concrete laws on black listing, to simplify the rules pertaining to import and to initiate Internet banking.

Officials extensively talk over taxation

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KATHMANDU, Feb 2- An extensive consultation meeting between the chiefs of tax offices of the valley and top officials of the Nepal Chamber of Commerce (NCC) was held yesterday to discuss the problems being faced by both parties while incorporating present tax system.

Speaking on the occasion, Rajesh Kaji Shrestha, President of NCC expressed the hope that such consultation would be helpful in understanding each other’s problem and also that it would contribute in broadening tax base. He said that the businessmen are always ready to pay tax, and added that the continued consultation has greatly helped to solve much of the income tax problems.

Bidhyadhar Malik, Director General of Tax Department highlighted various reforms being introduced in the tax system and said that introduction of Permanent Account Number in the present tax system has helped to manage the past complications.

He also appealed with the business community to play more positive role to broaden the present tax base and hoped that regular interaction with the businessmen would help to solve the existing problems.

Mahesh Kumar Agarwal, the immediate Past President of NCC urged the government to act properly by understanding the psychology of the consumers, added that the government should immediately implement trade plan to boost trade related activities.

FNCCI-Honourary Consul Generals discuss trade

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KATHMANDU, Feb 2 - Rabi Bhakta Shrestha, Acting President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has said that Honorary Consul Generals and their office can play an important role in under-developed countries like Nepal in expanding international trade and economic relations.

Speaking in an interaction program organized here by the Federation aimed to boost mutual co-operation through extensive consultation among the Honorary Consul Generals stationed in Nepal, Shrestha said close relationship between them would be helpful in boosting constructive co-operation in promoting foreign investment and tourism in the country.

Shrestha, who is also Honorary Consul General of Italy to Nepal, said that the federation is organizing an interaction program with all major political parties in an attempt to end the existing economic difficulties and added, "FNCCI is thinking of continuing such interactions in the days ahead."

In the program, Mohan Gopal Khetan, Gajendra Bahaddur Shrestha and Rajendra Kumar Khetan Honorary Consul Generals of Turkey, Sweden and Portugal respectively appreciated the latest interaction program organized by the FNCCI and opined that it would play an effective role in expanding mutual economic co-operation. Similarly, on the occasion, Santosh Kumar Tibrewala, Ambika Shrestha, Keshab Ragmi, Chaturdhoj Karki and Shreeram Lamechane Consul Generals of Morocco, Spain, Belgium, Slovakia and Luxembourg respectively were also present on the occasion.

Speaking on the occasion, Binod Bahadur Shrestha, Third Vice President of FNCCI appealed to the Consul Generals to play active role in promoting trade co-operation with Nepal and added that the Federation is conducting various activities to promote domestic industries

Rajendra Kumar Khetan, Chairman of Employees’ Council and ex-officio Vice President of FNCCI informed the gathering that the Federation has just conducted a extensive interaction program on the deteriorating law and order situation in the country and its impact on industrial environment. He also added that FNCCI has submitted various proposals with the government curb it.

Export worth Rs 8.3 billion via Birgunj

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BIRGUNJ, Feb 2 - Various goods worth Rs 8.30 billion was exported to Indian and third countries through Birgunj customs checkpoint during the first six months of the current year, which is 5 per cent up as compared to the corresponding period last year.

Even though, the total volume of export has increased by over Rs 400 million, the export to the overseas countries has declined by over Rs 550 million as compared to the same period last year. The export to third countries, during the first half of the last fiscal year recorded Rs 5.41 billion, which tumbled to Rs 4.86 billion during the current year.

The declining trend observed in the export of woolen carpet, second largest exportable item from the country, is one of the prime causes of the slump in the overall overseas export. During the period, the total carpet export plunged by over Rs 750 million to touch Rs 3.17 billion from Rs 3.92 billion recorded during the same period last year. According to the custom officials, more than 90 per cent of the total carpet export is done through the Birgunj custom point.

Similarly, over 1.4 million dozen readymade garments, worth Rs 1.10 billion, was exported to third countries whereas its export during the fist half of last fiscal year was 1.15 billion. In the same way, tanned skin worth Rs 207 million, handicrafts worth Rs 9.4 million and masoor dal worth Rs 159 million were export during the first half of the current fiscal year thorough the Birgunj customs.

During the review period, a remarkable surge of over Rs 956 million in the export to Indian was recorded. The export of vegetable ghee, which is the sole largest exportable goods to India, registered a robust cent per cent growth. Its export, during the period touched Rs 1.15 billion against Rs 538 million recorded during the same period last year.

Similarly, iron pipe worth Rs 248 million was exported to India during the review period whereas the figure for same period of last year was only Rs 6.25 million.