Concern over frequent bandhs
National economy to be the ultimate victim

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KATHMANDU, Dec 31 — "If Nepal wants to retain last two years’growth rate and reduce poverty and unemployment, there should no impediments for the smooth operation of business," says an Indian investor of a multi-national company, talking to The Kathmandu Post.

The two-day bandh called by nine left parties on January 1st and 2nd close on the heels of recent furore over the alleged anti-Nepal remark by the Indian film artist Hrithik Roshan, has come under scathing criticism from the business community.

Ten leading business organisations even went to the extent of issuing a communiqué to different publications protesting against the bandh. The communiqué states that bandhs cannot be a solution to the problems faced by any political or non-political organisation and group. Past experience has revealed that such activities have further aggravated the problems at the cost of the economy.

Businessmen have warned that the Nepali economy, which showed good signs in the past two years, will face trouble, if the two-day Nepal bandh is not taken back. They say that frequent bands harm business, which has a major bearing on the country’s economic development.

Frequent bandhs often accompanied by violence will further deteriorate the image of the country in the international arena, say businessmen. Nepal is struggling hard to make up for its image already tarnished by the on-going Maoist insurgency.

"Investors tend to lose confidence when violence and bandhs frequently affect business activities. Confidence once lost is hard to rebuild," said Sandip Ghosh, managing director of Nepal Lever Ltd. "All channels of distribution will be disrupted and hence the effects of bandhs will be more felt by the local beneficiaries of joint venture companies than the parent company."

Though Nepal has a comparatively small economic base, a host of impediments exist in business activities. It is the local partners of joint venture companies who are hit hard by such encumbrances. "Frequent bandhs and violence have a greater impact on the locals. It is the stake of local partners which is at greater risk than the foreign investor," said an Indian businessman requesting anonymity.

"Forget about potential investors. If the frequency of violence and bandhs go up, even existing businessmen will think twice before pumping more capital into business," he stressed. Dr Mohan Man Sainju, Former Vice Chairman of the National Planning Commission termed the two-day bandh as ‘most disgusting’. "The major setback of such undesirable agitation is that it destroys Nepali image. Nepal used to be identified as a safe destination for investment and tourism in the past, but no more."

The impact of the bandhs would be strong on the non-agriculture sector, especially service sector, he stressed. Service sector contribution to the GDP presently stands at 50 per cent.

Rajesh Kazi Shrestha, president of Nepal Chamber of Commerce (NCC), said, "If all political parties have the same aim of ensuring good environment for business and promoting good governance, by eradicating poverty and corruption, then how come violence and bandhs take place frequently."

A number of business organizations, including Nepal Chamber of Commerce, Nepal Freight Forwarders Association, Nepal Foreign Trade Association in different press releases issued here today, have denounced the two-day bandh.

‘Protests might usher in communal violence’

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KATHMANDU, Dec 31 - What could be worse in the country than the riots and bandhs called in the name of lack of security in the wake of anti-Hrithik protests?

Many here now fear that the recent crippling protests might give rise to communal violence against Nepalese communities of Indian origin.

And to add to that, even most of the attacks on various business establishments during last week’s riots were mostly targeted against industries run by the Nepalis of Indian origin.

"Even the Indian joint venture companies have Nepali stakeholders. They’ve been established according to the Nepali Company Act and are generating employment for hundreds of Nepalis," says Rajendra Kumar Khetan, President of the Marwadi Youth Forum, an organisation of Nepalis of Indian origin. "Is Hrithik Roshan going to pay for the damages done in Nepal?"

Khetan, like majority of the people of his community, is a businessman operating for decades in Nepal. He is also the vice president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI).

"All in all, we are also one of the Nepalese communities, though we originated in India," he adds. The anti-Hrithik protest, which was sparked through rumours, is now threatening on Nepal-India relation.

"Anti-India feelings have been instrumental ever since the historical formation of Nepal. But the present tendency to victimise the Terai people for the economic dominance of India over Nepal is very bad," says Janak Rai, sociologist at the Tribhuvan University. "If this issue leads towards communal violence, then India will obviously have the upper hand."

Rai has a point. India is already accusing the entire disaster as a part of rising involvement of Pakistan based ISI activities in the Himalayan kingdom. On the other hand, reliable sources say that the government is already indirectly pointing fingers towards the Maoists.

But many here say that it is useless to go by pointing fingers at each other and the best way out is to immediately find an amicable solution.

Khetan agrees. "It is no use condemning anything or anyone now. The best thing is to look for a proper solution in resolving the entire fiasco. An investigation should be carried out." But what about the security of the Marwadi community, under the present circumstances?

According to Khetan, the government today assured them to provide proper security and establish a hotline telephone number with high-level security officials. Even the main opposition party CPN-UML has agreed to help bring about an all-party consensus on the country’s economic agenda, he said. The grouping of nine left parties have also agreed to not resort to any violence during the two day bandhs they have called starting tomorrow, he adds. "We trust their assurances."

2 killed in NSP-called strike

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KATHMANDU, Dec 31(PR) - At least two persons were killed and many more critically injured as protesters clashed with police in several Terai districts today in the course of a bandh called by the Nepal Sadbhavana Party (NSP).

Two persons died in Rajbiraj of Saptari district today in course of the bandh pogramme organised today in Saptari, Mahottari, Sarlahi, Rautahat, Bara, Parsa, Nawalparasi, Kapilvastu and Dhanusa districts in protest against the attack, vandalism, and arson against Nepali citizens of the Terai community in Kathmandu, and the setting of fire to the Nepal Sadbhavana Party central office in Kathmandu, according to RSS.

The NSP had called the bandh in some Terai districts to protest the mis-treatment of Nepalis of madhise origin, and the arson attack on its party offices in Kathmandu in the wake of the violent anti-Hrithik Roshan protests last week.

In Rajbiraj, a 40-year-old man, Khush Lal Yadav, was killed when police fired to control an enraged crowd. Six others, including a policeman, were also injured. Three of the injured are said to be in critical condition, according to our reporter.

Superintendent of Police at Rajbiraj, Bharat Bahadur KC said that police fired 15 rounds of tear gas shells and 4 rounds of bullets to control an agitated mob. "Security has been beefed up and police is trying its best to keep the situation under control," he added.

According to report received here, the situation still remains tense and there is possibility of a curfew being imposed in the town. The NSP has declared a bandh throughout Saptari district on Monday in protest against Yadav’s death.

Likewise, the situation was also tense in Kalaiya, as police fired several rounds of tear gas shells and 15 rounds of bullets in the air to disperse an agitated mob.

Meanwhile, the situation in Birgunj was mostly calm with sporadic clashes reported. However, businesses and shops remained closed throughout Sunday. Police have called for reinforcements to stem any rise in violence, according to our reporter there.

According to the local business community in Birgunj, the bandh resulted in loss of about Rs 10 million, as shoppers from across the border could not come for purchases. Some local businessmen had even protested against the bandh for that reason.

The NSP-called bandh, in other parts of the Terai region was relatively peaceful.

In Nawalparasi, markets, all educational institutions and business establishments remained closed. Apart from few incidents of stone-pelting, the situation remained peaceful.

In Jaleshwore life came to a halt, as markets and all educational and business establishments remained closed. No incident of violence were reported.

Meanwhile, in Banke, the NSP held a meeting and warned the government that the party would be forced to start agitation if culprits involved in the burning of the party’s Central Office in Kathmandu were not brought to book soon.

Talks fail, general strike to go ahead 

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KATHMANDU, Dec 31 - Talks to avert the two days of general strike failed to materialize after the government refused demands for Deputy Prime Minister Ram Chandra Poudel’s resignation.

"The nationwide strike planned for Monday and Tuesday will go on as the DPM is not ready to take moral responsibility for the killings and terror last week and resign," CPN-ML General Secretary Bam Dev Gautam told reporters as he was leaving the prime minister’s residence after the failed talks.

Prime Minister Girija Prasad Koirala, DPM Poudel, Defence Minister Mahesh Acharya and Foreign Minister Chakra Prasad Bastola met with Gautam and representatives of the Grouping of Nine Left parties, the umbrella group of nine smaller leftist parties in a bid to avert the two-day general strike.

The government however is in no mood to bow down to the opposition demands. Instead DPM Poudel said the government is gearing up to foil the strike and beef up security to ensure safety for the citizens.

"The government believes that resignation is not the solution to the present situation. A move like that would only encourage the elements responsible for the situation," Poudel said.

The Leftist groups are calling the general strike demanding the DPM step down taking moral responsibility for last week’s rioting that left at least four dead and hundreds others injured.

In the beginning the group wanted Prime Minister Koirala to step down.

But today they were only seeking the DPM’s resignation, who is also the Home Minister responsible for internal security and administration.

Trouble began Tuesday after the rumours of a television interview where Indian film star Hrithik Roshan made alleged anti-Nepal remarks spread from the southern districts.

The government however cleared Roshan’s name today.

"We have not found one single soul who has actually watched the interview with anti-Nepal remarks and since the individual alleged has also clarified how can the government not accept it," Poudel said.

When asked who is actually responsible for initiating trouble, Poudel refused to comment saying that the government has formed an investigation team that will present its report within the next two weeks.

"This strike is against the will of the people that has no support of the public at all that violates the fundamental rights of the people who are forced to comply," Poudel said. "This is unacceptable."

NC leaders’ residences attacked

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KATHMANDU, Dec 31 – In the wake of the two-day bandh called by the grouping of Nine Left parties, various violent incidents targeted mostly against the residences of top-notch Nepali Congress leaders have been reported in the capital.

Socket bombs and bullets have damaged the residences of NC General Secretary Sushil Koirala, State Minister for Education Dilendra Prasad Badu and former Home Minister Govinda Raj Joshi. However, no one has been injured in the attacks.

According to the police, all of the attacks were made at around the same time at 6 p.m.

The bomb that was hurled by some unknown miscreants at Koirala’s residence in Buddhinagar shattered windowpanes up to the third floor. A 5,000-litre capacity water tank and a toilet, both on the ground floor, were also destroyed, according to an acquaintance in the house.

Speaking to The Kathmandu Post, General Secretary Koirala said it was an attempt to cower him into silence as he has "been speaking against Maoists and violence".

When asked whether he suspected the Maoists or the bandh supporters for the attack, Koirala said, "They could be anybody." Similarly, bombs were hurled at the residences of Joshi in Jawalakhel, Lalitpur and of Badu’s in Patan.

Police said that assailants escaped on motorcycles after hurling bombs at Joshi’s and Badu’s residences. "Bullets were also fired," they said.

Meanwhile, bomb blasts have also been reported in Gopi Krishna Hall in Chabahil.

India, BJP disown Malkani remarks

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KATHMANDU, Dec 31 - The Government of India and the nation’s ruling party have both disowned the controversial statement made by a senior leader of the ruling Bharatiya Janata Party (BJP) to News Today, a media outlet of the India Today group.

In a statement faxed from New Delhi to The Kathmandu Post Sunday, India’s Ministry for External Affairs (MEA) said, "the remarks reported to have been made by K R Malkani do not, in any way, reflect the views of the Government of India."

A similar statement by BJP president Bangaru Laxman said, ""The remarks on Nepal reported to have been made by K R Malkani in no way reflect the views of the Bharatiya Janta Party and are unfortunate."

The statements from the Indian government and BJP came soon after the Royal Nepali Embassy in New Delhi lodged a formal complaint with the MEA. Sources said that Nepal expressed distress towards the insensitivity shown by a senior BJP leader towards Nepal’s national sentiments, and warned that such remarks could harm ties between the two close neighbours.

Meanwhile, the MEA statement that disowned Malkani’s remarks further stressed the need to avoid any misunderstanding between the two countries.

"India has long-standing, close and friendly relations with Nepal and the Nepali people based on the fullest respect for each others sovereignty and national aspirations," said the statement. "It is important that at this juncture we avoid any misunderstanding and misperception and work to strengthen the traditional ties of goodwill and friendship between the peoples of the two countries," added the statement.

BJP President Laxman’s statement added that his party is committed to strengthening traditional ties of goodwill and friendship between Nepal and India. "We fully respect Nepal’s sovereignty and cultural identity."

The statements come in the wake of controversial remarks by Malkani about Nepal to a media outlet owned by the India Today group. The Indian magazine, on its website, reported that Malkani had shown "an astounding display of political ineptitude" by saying that India’s founding Prime Minister Jawaharlal Nehru should have accepted the accession of Nepal to India in the 1950s when it was offered by King Tribhuvan.

In the interview, Malkani further said, "I think we made a very serious, very foolish mistake when Tribhuvan offered to accede to India and Nehru said - ‘No, duniya kya kahegi, what will the world say?’ We should have accepted the accession of Nepal to India when it was offered to us by King Tribhuvan." When asked if it would have been better had Nepal become a part of India like Sikkim in 1976, Malkani had replied: "Of course, of course." The comments were made at a time when much of Nepal, including Kathmandu, was seething with anti-India sentiments in the wake of alleged derogatory comments made by Bollywood actor Hrithik Roshan.

NOC mulling oil price roll-back

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KATHMANDU, Dec 31 - With international oil prices plummeting once again, the state-owned Nepal Oil Corporation (NOC)could roll back prices of petroleum products if it can buy kerosene at lower prices.

The Corporation is to open bids for oil imports on January 5, and officials said if importers bid at lower prices, then there is a possibility that petroleum prices could be rolled back.

"NOC will invite next tender for oil imports on January 5 and possibility of slashing oil prices would depend upon the procurement price," said Madan Raj Sharma, Executive Director of NOC, talking to The Kathmandu Post.

The new scenario is the result of receding international oil prices. The price of kerosene in the international markets presently stands at around US $ 260 per ton, down from as high as 365 dollars at the time when the hike was announced in October.

Similarly, the price of Brent North Sea crude oil in the international market Friday fell to an eight-month low of US $ 23 per barrel. Crude oil price before the price hike had touched as high as US $ 35 per barrel, the highest since the 1990 Gulf War.

"NOC is not in an immediate position to tell whether prices of petroleum products in the domestic market will decline or not. At least not before NOC purchases oil next," said Sharma.

The government had announced a hike in the price of petrol by 17.5 per cent, diesel by 20 per cent and kerosene by 100 per cent, pushing up the price of the three products from Rs 40 to Rs 47, Rs 23.50 to Rs 27.50 and Rs 13 to Rs 26 respectively.

At the same time, the corporation had decided to grant subsidised kerosene at Rs 15.50 litre, which was later revoked, and the price later stabilised at Rs 22 per litre.

Minister for Industry, Commerce and Supplies, Ram Krishna Tamrakar, immediately after the petro-price hike, had assured that the hike would be rolled back if prices in the international markets fall.

The minister had said if prices in international markets fall, domestic oil prices would also be slashed. He had ruled out the possibility of price revision as long as international oil prices showed no signs of downturn.

Presently, NOC imports only kerosene from the international markets and barters it for petrol and diesel with India. However, the corporation has decided to import crude directly from the international markets after the expiry of the one-year agreement reached between NOC and Indian Oil Corporation (IOC) for the supply of petro-products to Nepal next June.

Koirala camp claims MPs deserting Deuba

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KATHMANDU, Dec 31- Benup Raj Prasai, who now decides when the voting on the no-trust proposal against Prime Minister Girija Prasad Koirala is to be held, claimed today that four of the 56 dissident Nepali Congress lawmakers have withdrawn their names from the no-confidence proposal.

Prasai, who is the secretary of the NC parliamentary party, disclosed the information at a Face-to-Face programme with reporters here on Sunday. He however refused to divulge the names of those who had withdrawn their support for the no-trust proposal.

As secretary of the NC parliamentary party, Prasai, who is also a close supporter of Prime Minister Koirala, is now responsible for deciding when the vote on the crucial proposal is to be held. On Sunday, he said that Koirala had instructed him to hold the vote by Wednesday, but he refused citing time constraints.

"The Prime Minister had asked me to fix Wednesday as the day for voting but I have refused," he said. He added that he had already met Prime Minister Girija prasad Koirala and Krishna Prasad Bhattarai and would meet Sher Bahadur Deuba before deciding on the date.

Other NC MPs also gave their views on the present feud in the party.

Krisna Kishore Ghimire, an MP belonging to the Deuba faction, said,"since Koirala failed to provide the things he promised when he threw out the Bhattarai Government, he has lost support of the MPs. If Koirala had been really serious about delivering on his promises rather than just holding on to power then this situation would not have arisen."

Ram Chandra Tiwari, on the other hand said that the no confidence motion was "absolutely not necessary." "At a time when anti-social elements are active against NC and democracy, how fair is this motion?" He questioned.

Meanwhile, Shailaja Acharya former Deputy President of the NC and niece of Prime Minister Koirala has issued a statement appealing for all party workers to save the NC party.

"If a majority Congress government is unstable, then the country will be unstable," Ms Acharya said urging everyone to save the present NC government.