Budget session to convene June 25

By Binaj Gurubacharya

KATHMANDU, June 18 - The much delayed budget parliament session has finally been summoned by King Gyanendra to be convened next week amid uncertainties on whether chaos will continue its grip spilled over from the previous session.

Opposition parties, though they have not made any formal decisions, are likely to press ahead with their old demand for the resignation of Prime Minister Girija Prasad Koirala.

To add to all that, Koirala, who also holds the portfolio for Royal Palace Affairs and is a member of the Security Council, is expected to be grilled over the June 1 massacre of King Birendra, Queen Aishwarya and several members of the Royal Family at the Narayanhiti Royal Palace.

"It does not look like the Prime Minister will have an easy time this session either with new issues and new concerns emerging now," said Lilamani Pokhrel, outspoken lawmaker from United People’s Front. "The Prime Minister is also the Minister for Royal Palace Affairs and the situation for him is even worse than before."

The last winter session had prorogued on April 4 without even conducting a single day of regular business during the entire session traditionally known as working session, where Bills are discussed, debated and endorsed.

Opposition parties, led by the main opposition CPN-UML, teamed up against the Nepali Congress (NC) government and had gheraoed the Speaker, shouted anti-Koirala slogan stalling House proceedings and then boycotted the sitting for entire 57 days the House sat for session since it convened on February 8.

These parties were demanding the resignation over the government’s alleged involvement in the financial irregularities over the infamous Lauda Air deal that forced one senior minister to quit and top officials of the state-run Royal Nepal Airlines Corporation thrown into jail.

"We will decide within the next 4-5 days with the other opposition parties on a strategy to move during the upcoming session," said CPN-UML’s Khadga Prasad Oli without elaborating.

CPN-UML with 69 lawmakers in the House of Representatives, the Lower House of Parliament, leads the opposition pack followed by the Rastriya Prajatantra Party (RPP). RPP and CPN-UML have already announced an alliance for the Upper House elections and have indicated their partnership would go further than that.

"We will be discussing with CPN-UML on continuing the partnership during the upcoming session too," said RPP Chairman Surya Bahadur Thapa.

CPN-UML’s powerful General Secretary Madhav Kumar Nepal too said the two parties have teamed to alienate NC and hoped that other parties would join hands with them.

"Our stand is to continue pressing for the Prime Minister’s resignation and with the Royal Palace incident there is more reasons for him to step down," said Nepal Workers and Peasants’ Party’s lone lawmaker Narayanman Bijukhche.

The session will convene on June 25, which is almost two months behind schedule compared to last year and only about three weeks before the current fiscal year ends on July 15.

The fiscal budget that is usually presented few days after the presentation of the government’s programs and policies take at least a month and half to be discussed and endorsed through the House.

During the time the budget is being processed through the Parliament, an Accounts Bill is endorsed through, allowing the government to borrow money and keep the administration running until the fiscal budget is fully passed as Finance Bill.

The dilemma for these political parties in the opposition now is whether they are going to let the government go ahead with its scheduled presentation of programs and policies and the fiscal budget or continue to stall parliamentary proceedings demanding the Prime Minister’s resignation.

In case they resort to the stalling tactics, they are bound to be alleged of holding the nation hostage by blocking the fiscal budget that could have negative effect on every aspect in the country.

And if they do decide to let the government move ahead, these parties who have long and hard pressed ahead with the Lauda Air scam and now have been criticising the high-level probe of the Royal Palace massacre, would be seen shying away from their earlier stand. This would not appear positively on their political resume.

Shrinking imports could hurt economy

KATHMANDU, June 18 - Shrinking imports accompanied by robust export growth rate may sound impressive since it helps to improve trade balance. Paradoxically it is not a good news for the overall economy.

The economy has grown healthily in the past two years with enough foreign currency reserves and unhurt consumption expenditure. But the marked decline in imports, especially from the third countries, since the beginning of the current fiscal year, hints a gloomy future.

"The slowdown in the import of the capital goods is not a good signal for the economy since it may hit the contribution of the manufacturing sector in national economic growth in the long run," says Susil R Mathema, Director of Nepal Rastra Bank. He further said that shrinking capital goods imports might first squeeze national production and employment opportunities, eventually hitting the aggregate demand of the national economy.

According to the latest trade statistics of Nepal Rastra Bank (NRB), just like the first and the second quarter of the current fiscal year, total import bill, during the third quarter, witnessed a single digit growth of 6.9 per cent. Such growth in the corresponding period last year was almost 29 per cent. The total imports during the last fiscal year had surged by 22.2 per cent as compared to previous year’s statistics.

Sweeping observation might suggest a narrowing trade deficit that is certainly at the advantage of the economy. However, analysis reveals that such slump is, among others, due to dipping import of capital machinery and raw materials for industrial enterprises.

Statistics show that imports from third countries has grown negatively while that from India has surged in double digits. This suggests an increasing shift of Nepalese consumers from third country products to goods produced by multinational companies in India mainly due to high quality and relative cheapness.

However, the shrinking import of capital goods, for which Nepal’s dependence on third country import is strong hints towards a future gray area. Nepal heavily depends upon third country import for raw wool, machinery, and petroleum.

The double-digit tumble in the import of wool - the principal raw material for the carpet industry – is an area for concern. Carpet industry is the second-largest exporting industry and largest labor-intensive industry of the country. Similar negative growth in the import of machinery goods both from India and other countries has further raise their concern.

Of the many reasons for growing Indian imports in the domestic market, one is the relative cheapness of Indian goods as compared to those from third countries. Continuing depreciation of the domestic currency vis-à-vis dollar has made third country imports expensive in the recent years.

Since Nepal maintains a fixed exchange rate with the Indian currency, goods imported from India are free from price rise due to foreign exchange fluctuations. Beside this, the speedy modernization of the Indian industrial and service sectors in recent year, has enabled them to produce goods and services, for which Nepal traditionally was dependent upon the third countries.

Nepalese consumers are increasingly shifting their long-existing third country import dependency on goods produced by multinational companies in India mainly due to high quality and relative cheapness. The soaring import of Indian cars and multi utility vehicles by displacing Japanese vehicles is one such examples. During the third quarter, the import of vehicles and parts from India sprouted by 78 per cent while similar imports from the third countries slumped by 5.6 per cent.

‘Probe report: A basis for further investigation’

KATHMANDU, June 18 - The Nepal Sadvawana Party today said that the report presented by the high powered committee over the Narayanhity Royal Palace massacre has come out not only as a supporting evidence but has also laid a foundation for further analysis and investigation over the matter.

In a press release issued today, the pro-terai party adds that it is agreed upon by all that there has been serious lapse and carelessness in the security arrangements at the Royal Palace. Therefore, a practical analysis and "proper medication" is required not to let this kind of incident occur again.

"The report presented by the committee consists only of statements of eyewitnesses and concerned people’s accounts, but does not make any conclusion nor gives any views over the matter and has left many sensitive questions unanswered" adds the release. In this account the party demands the government to "work on the sensitive points brought out by the high level committee report."

The party at the same time has congratulated His Majesty King Gyanendra on his accession to the throne. The party has also expressed condolence over the demise of His Late Majesty King Birendra, Queen Aiswarya, King Dipendra, Prince Nirajan, Princess Shruti and other Royal relatives.

Meanwhile, the CPN-ML, the breakaway faction of the main opposition CPN-UML has issued a press release saying that discussion were on within the party over the report presented by the high level probe committee.

‘Govt has not banned bandh’

KATHMANDU, June 18 (PR) – The Home Ministry today denied that the government was preparing to ban bandh (general strike) throughout the Kingdom and sit-in and strikes in offices of essential services.

On Monday, there were reports that the government was planning to issue notification to this effect in the gazette.

Reacting to media reports, the Ministry today issued a press release saying that such reports were "baseless and misleading". It also assured that the Ministry would provide all information on the subjects relating to it.

The Home Ministry also clarified that the Public Safety Rules, 1962 was replaced by Public Safety Regulations, 2001 in order to update the Public Safety Act, 1990.

Over 3,300 refugees interviewed

BIRTAMOD, June 18- The Joint Verification Team (JVT), the high level body of Nepali and Bhutanese officials entrusted with a duty to identify Bhutanese refugees languishing in eastern Nepal, has so far completed interviewing 3,312 refugees belonging to 527 families from the Khudunabari camp, sources said.

The snail’s pace of the verification process, has drawn strong criticism from the suffering Bhutanese refugees. The identification of a little more than 3000 persons in a period of three months has both saddened and angered the refugees. "The existing procedure of verification is entirely unacceptable to us as it seems to lead nowhere," said Bhutanese human rights activist, Sushil Pokhrel, adding, "It’s little more than a delaying tactic."

Similarly, observers here are awaiting the government’s next move to speed up the verification process, as promised about one and a half months ago by Foreign Minister, Chakra Prasad Bastola. He had told at a brief press conference at Birtamod following his visit to the JVT office at Damak that Nepal would seek to discuss ways to speed up the verification process in the next ministerial talks between Nepal and Bhutan.

The JVT is entrusted with verifying the genuine Bhutanese from among over 100,00 refugees languishing in seven refugee camps in eastern Nepal.

Friends, teachers rue loss of late Dipendra and Nirajan

By Subas Risal 

KATHMANDU, June 18 -  Weeks after the massacre of Royal Family inside the Narayanhiti Royal Palace, teachers and students of Budhanilkantha School on Monday paid their heartfelt tributes to late Crown Prince Dipendra and Prince Nirajan, two ex-students of the school.

At a condolence function organised in the school premises Monday, teachers and fellows of the late princes rued their loss and said how "extraordinarily ordinary " the late princes were during their school days.

"The Princes were extraordinarily ordinary," said Jana Thapa, who taught English to the late Crown Prince Dipendra and Prince Nirajan several years ago, as current and former teachers and students of the school huddled in the school hall to mourn their sad demise.

Added Ratna Bahadur Tamot, ex-Vice Principal of the School who also taught Nepali to the princes, "No special attention was given to the Princes, they were treated like any other students. And they never behaved as someone from the Royal Family."

Recalling the moments with the then Crown Prince Dipendra, he never had any complaints against him. "He was one of the most well-mannered and disciplined student, and never wanted others to address him as Crown Prince."

Another Nepali teacher appeared grief-stricken and recounted how the then Crown Prince used to disagree with the saying ‘Bidhya haraye Kasi jannu, nyaya napaye Gorkha janu’(which literally means ‘go to Kashi (Benaras) to acquire education, go to Gorkha to receive justice). "He would disagree with the saying and used to say that one has to come to the Narayanhiti for justice," he said.

"Once he was caught red-handed trying to sneak out of the school jumping over the wall and was punished like any other students," recalled another classmate of the late Crown Prince. He did not want to be named. According to him, late Dipendra was told to undergo a punishment called "TPS (Ten Past Six)"— which requires the student in question to wake up at ten-past-six in the morning and work in the garden for at least 2 hours.

And the Late Crown Prince was stubborn and assertive, if statements of one of his close mates are anything to go by.

"He was stubborn at times," said Harihar Joshi, a close friend of the late Prince. "He was so curious about the Budhanilkantha Narayan (Sleeping Vishnu) that he always insisted on visiting the temple," an act which is traditionally prohibited to the King and the Crown Prince.

Legends since the time of Malla Kings, the ancient rulers of the Valley, have it that since the Kings are regarded as the re-incarnation of Lord Vishnu, a visit to the temple might be disastrous for the country in the long run.

The temple is just a 100 meters away from the school.

Memories of the late Prince Nirajan were equally vivid at the function. "Late Prince Nirajan was a good swimmer, he used to participate in many swimming events," said Bijaya Maharjan, a swimming instructor at the school.

Former students of the school say that all students are treated equally at the school and are given individual roll numbers once they get admitted. The students are known by their roll numbers rather than by their names. The late Crown Prince Dipendra was popular as roll number "832" while Prince Nirajan was called roll number "736".

NEA signs PPA with Khudi Hydro

KATHMANDU, June 18 - The Nepal Electricity Authority (NEA) today signed a power purchase agreement (PPA) with Khudi Hydro Power Project Limited to buy nearly 4 megawatts of power to be generated by the plant.

The power plant is expected to begin commercial generation and connect it to NEA’s main grid by December 2003.

The private promoters Lamjung Electricity Development Company Limited (LEDCO) will invest about Rs. 450 million in the project and at least 30 percent of its investment will be borne by SCP International Company of Canada.

Under the PPA, NEA will pay Rs. 3 per unit of electricity purchased during the normal period including monsoon months when the power supply is adequate but will be pay Rs. 4 per unit during the four dry summer months. The price tag will also increase a rate of six percent for the next five years and the increase percentage thereafter will depend on the Nepal Rastra Bank index.

Unlike previous other projects like Bhote Koshi and Khimti, that earned NEA sea of criticism, NEA will pay this company in Nepali rupees and not in convertible currency.

And if the construction of the project, whose detailed study has already been completed, does not begin within a year, the PPA signed will be automatically become null and void. The transmission connection to the NEA’s main grid at the closest available point will have to be done by the company.

"This agreement with NEA will encourage private investors to invest in power projects in Nepal," LEDCO Chairman Dikendra Kadel said.

"When we have such local company investing and developing projects, the capital stays in the country," said NEA’s Executive Chairman Bishnu Bam Malla.

PABSON presents recommendations

KATHMANDU, June 18- Private and Boarding School Organizations (PABSON) today submitted a fifteen-page recommendation document to the High Level Committee formed by the government to reform the education sector.

"This is a research material based on the samples from five development regions and 236 schools," said Rajesh Khadka, President of PABSON, while submitting the 10-point recomendation to the Committee today.

PABSON in its survey had divided all the private schools into three categories-Private Trust, Public Trust and Service oriented. It also suggested a comprehensive process to fix fee structure in the private and boarding schools depending upon their capacity, locations and investments.

The PABSON findings say that 40 -50 per cent of the fees raised by private schools goes to teachers’ salary, 20 per cent to rent of buildings and on loans borrowed by these schools; And, about 5-10 per cent of the total enrolled students are granted yearly scholarships by the schools.

A five-member High Level Committee (Task Force) set-up by the Ministry of Education and Sports was supposed to submit its reports to the government on today (Monday) after 35 days of its initiation. However, due to the extended public holidays following the national mourning, the Committee was unable to file it on scheduled.

Speaking to reporters at Singh Durbar, Dr Nirmal Prasad Pandey, Chairman of the Task Force who is also a member of the National Planning Commission, said that the "draft report" is ready and will be presented to the government shortly after a final discussion.

The report, however, has fallen through for want of a final discussion with the former education ministers and political parties before being presented to the government. "We want it to be a "national document"- acceptable to all," said Pandey.

The Committee has interviewed and collected the opinions of several respondents from education sector including PABSON members, students, individuals, intellectuals and government officials. It has also received recommendations from Nepal Students’ Union and CPN-ML affiliated students’ organization, ANNFSU (ML).

However, the Task Force has received no written endorsement from All Nepal National Free Students’ Union, Revolutionary, ANNFSU (R). "We have only received oral recommendation from ANNFSU (R)," said Pande.

"PABSON has seen purely from school’s perspective," said Dr Pande, adding that the report in the form of "action plan" requires to be looked into various perspective so as to make it acceptable to all.

The Committee’s report is expected to be handed over to the government for implementation after discussing with the former education ministers and at the political level.

Lumbini conservation plan being readied

KATHMANDU, June 18 - The design works for conserving Lumbini will be finalised in the next few days, officials of Lumbini Development Trust (LDT) said today.

Prime Minister Girija Prasad Koirala initiated the long-awaited conservation works at the Mayadevi Temple, Lumbini, on May 7, on the occasion of Buddha Jayanti.

LDT and Japanese Buddhist Federation (JBF) had jointly excavated the Lumbini area during 1993-1998, but conservation works of this religious site started only six weeks ago.

Vice-Chairman of LDT Omkar Prasad Sherchan said that the construction work was progressing smoothly after a series of disputes and disturbances. "Finally, all the components on developing the birthplace of Lord Buddha have been put together. All sides are now convinced that completion of the two-decade old project is urgent," he said.

Though LDT had begun some work in and around the area, the main design of the renovation project is still incomplete. "The revised design will come out within the next few days," he said.

At least three designs have been proposed by both the Nepali and Japanese sides for the reconstruction of the Mayadevi Temple. The last scientific meeting of the UNESCO experts sought slight changes in the third design.

He added that LDT has started construction works using its own means but it is ready to allow JBF to continue if they propose to do so. Earlier, JBF had agreed to finance the whole project but their promise never materialized.

LDT Project Chief Birendra Kumar Yadav said that the conservation works could be delayed for one month or so if the water level increases during the monsoon period.

He said that the local labourers working to clean and strengthen the ancient bricks and walls. And, the vacant chambers are being filled with sand and bricks.

"Everything is being done according to the international standard of conservation of archaeological sites, as prescribed by UNESCO," Yadav said.

He added that UNESCO is sending more conservation experts to Nepal to assist the project next month. The conservation of the sacred garden area in Lumbini, the exact birthplace of Lord Buddha is situated, is scheduled to be completed, in three phases, within the next three years.