Their Majesties to visit Syangja temple

Post Report

KATHMANDU, Oct 17- His Majesty King Gyanendra Bir Bikram Shah Dev is scheduled to leave for Syangja Thursday. His Majesty the King will be accompanied by Her Majesty Queen Komal Rajya Laxmi Devi Shah.

This is His Majesty’s first visit outside the capital since he was enthroned at the Narayanhiti Royal Palace this June.

Their Majesties will visit Shah dynasty’s family deity Alam Devi Temple, a historical and religious site, for performing puja (religious rites). Their Majesties will land at helipad close to the temple at 8:30 am and perform puja until 9:30 am.

All preparations regarding the visit have been completed. Royal Nepal Army (RNA) team had already left Syangja a week ago to make the preparations.

It has become a tradition for Royal family members to visit the temple for puja. Late King Birendra and his family members had paid a visit to this temple four years ago.

Upper Karnali hydel project set to take off
NEA to sign Power Purchase Agreement today

By Surendra Phuyal

KATHMANDU, Oct 17 - A big hydroelectric project is set to take off in Nepal’s poorest region, Karnali, finally. Officials of a Singapore-based humanitarian trust and Nepal Electricity Authority have agreed to speed up the development of the 300-megawatt (MW) Upper Karnali hydroelectric project. A Power Project Agreement (PPA) to this effect is being signed in the capital Thursday.

Highly placed sources at the NEA told The Kathmandu Post late Wednesday that the NEA and the Ministry of Water Resources officials have finally agreed to give a go ahead to the Elysee Frontiere Trust - which is based in Singapore and actually owned by French - to develop the run-of-river-type hydel project.

"A bilateral team has already worked on and finalized the PPA draft, and it will be signed Thursday," a confidential NEA source said.

According to the sources, Chairman of the Trust, Sylvain Levcque, and the chief of the state-owned power utility are to sign the PPA in the capital Thursday afternoon. Under the agreement, NEA will buy the power generated from the project at the rate of Rs 2.90 per unit during the dry season.

"It has also been agreed at today’s meeting that the NEA will buy 50 percent of the power at the rate of Rs 1.45 per unit and the remaining 50 percent at Rs 2.90 during the wet season," an official, who was also present at the meeting, added.

This is in stark contrast to the per-unit-price negotiated by the NEA with the private power developers that developed Khimti-I, Bhote Koshi and other power projects. The per-unit-prices of the Khimti and Bhote Koshi power hover around Rs 5 presently and are subject to go up with the rising inflation.

Hydropower experts, who are skeptical about the whole episode - that the trust would channel the "profits into poverty eradication schemes in Nepal itself"- agree that the per-unit-price being negotiated by the state-owned power monopoly indeed is "cheapest so far in recent times".

Said water resources expert, Ajay Dixit, "I can’t just believe my ears that this is happening...One has to be skeptical about such investors, their actual motives. One should investigate...But as far as the project is concerned it is one of the best hydro projects in the region."

A Memorandum of Understanding was reached between the Ministry of Water Resources, the NEA and the Trust’s local company, Elysee-NEA Upper Karnali Hydroelectric Power Limited (ENUKHPL), on May 11, 2001. A copy of the MOU obtained by The Kathmandu Post states that the ENUKHPL would develop the project on BOOT (Build Operate Own and Transfer) basis within seven years.

"The investor shall own 70 percent of the shares worth US $ 480,109.70 while the remaining 30 percent of the shares will be owned by the NEA," the document states. It adds that the project would be implemented under the Humanitarian Financing Plan. What this means, say knowledgeable officials, is that "all the returns from the hydroelectric project will be spent on development and poverty reduction schemes in the region".

Both the parties have also agreed to introduce the shares to the international stock exchange market, for which prior approval of the government of Nepal and other relevant authorities will be obtained if required, states the copy of the joint venture agreement.

After the PPA is signed, the ENUKHPL plans to make arrangements for the project’s financial commitment by December, and go into the process of obtaining Power Generation License by January-end, 2002. Soon after it floated its proposal, the government’s Fast Track Committee gave it a green signal last year (on October 2).

The project has been under discussion since the 1960s, and the development of which is expected to open up whole new vistas for the development of Karnali region, Nepal’s poorest region most of which is under the control of the underground Communist Party of Nepal.

The hydropower plant will be formally handed over to NEA 30 years after the project begins its commercial operation.

CIWEC, a Canadian consultant firm which carried out the project’s feasibility study three years ago estimated the construction cost at between US $ 454,300,000 million and US $ 468,600,000.

Main structures of the project will be constructed in the districts of Surkhet, Dailekh and Achham, upstream of the proposed Karnali-Chisapani hydel project, on the boundary of Far-Western and Mid-Western development regions. The feasibility study had calculated the project’s investment return rate at 18.83 per cent, and seven years time to complete the construction works.

Prior to this, the humanitarian trust, which is also a member of Euro Asia Capital Holdings Inc, is said to have developed similar hydroelectric projects and other infrastructure projects in Vietnam, Laos, China, India and Iraq.

Bus companies hit hard by fake ticket vendors

By Nitya Nanda Timsina

KATHMANDU, Oct 17 - With fewer passengers buzzing about the Gongobu Bus Park and with sales of tickets decreasing than last year, hundreds of night-bus entrepreneurs are facing a downward trend in their business.

And with regulatory and monitoring mechanism derailed on the road-side during festive season and brokers allowed unfettered access to sale unauthorised tickets, the transport industry, which has been enjoying an unprecedented boom during the festive season every year, is feared to suffer this year.

The bus entrepreneurs say unauthorised sale of tickets through brokers would have serious implications on their earnings.

"Prices are going below the production cost and we are in an embarrassing situation whether to close our business or face the consequences," says Prakash Acharya, proprietor of Bhawana Travels, which owns 22 night buses.

Officials at Nepal Transport Workers Association (NTWA) said only 16 buses are booked daily instead of 84 buses operating from Gongabu Bus Park to Kakarvitta during the festival - when most bus entrepreneurs were supposed to earn more than what they earn in six months.

Dharma Raj Bhandari, secretary of NTWA, said that from a daily average of 6,000 to 6,500 passengers who booked the tickets from Gongabu Bus Park during the previous festival, the number has dropped to less than 4,000 during the peak season this year.

"This also suggests that over 2,000 people book their tickets through the brokers, which have by affected the business," an official at the Gongabu counter said on condition of anonymity.

Kalanki, Tikhedewal, Lagankhel, Sundhara and Koteshwor are some of the popular hunting spots for brokers who pocket handsome commission from the passengers during this peak-season.

But they are also involved in issuing fake tickets to the poor travellers and innocents who have to spend half of their month’s salary to buy tickets.

Dipesh Upadhyaya, a technician at a motorcycle workshop, not only received a fake ticket but also lost Rs 870 to the brokers when he found himself stranded at the Gongabu Bus Park.

"I was happy to think about going home for Dashain when I booked the ticket from Gaushala but later I found out that I had been cheated," said Upadhaya who had to beg for alms to purchase a new ticket for himself and a relative.

Keshab Prasad Baral, chief of the Valley Traffic Police, however, said that no passengers have ever reported to the police after being cheated. "They are heedlessly buying the tickets from brokers despite our warning," he said.

"We have informed the regional traffic police to keep alert during the festival and apprehend any brokers selling tickets," he added.

But despite these efforts, at several points, brokers are seen openly handing out tickets to the passengers and forcing them through the bus no matter they find their seat or not. The entrepreneurs receive nearly a half of the actual fare while the brokers pocket other half.

Bus entrepreneurs claim that their business, which always boomed during the festival, has been dragged down to the lowest due to these brokers.

Derailed management and organisational process of the Transport Entrepreneurs have adversely affected the transport industry in recent years.

The Supreme Court had on August 23 pronounced a judgement declaring unconstitutional the operation of several of these counters outside the bus park. "Despite the SC ruling, the tickets are clandestinely sold at the roadside counters," said advocate Bal Krishna Devkota, acting chairman of the Federation of Nepal Transport Entrepreneurs Association (FNTA).

Bishnu Shivakoti, advisor of Federation of Nepal Transport Entrepreneurs Association, said that to contain such mismanagement and problems of brokers, a new bus park at Dhunge Adda has been opened to provide safe booking passage but said the passengers continued to be cheated at the roadside booking counters.

Income Tax Bill gets through despite criticism

By Satyendra Timilsina

KATHMANU, Oct 17 –   The much-debated Income Tax Bill 2001 finally got through the parliament and is now waiting for Royal assent before it would be enacted. The new Income Tax Bill which is said to be of international standard would replace the existing 27 year old Income Tax Act, 1974.

Despite the government’s effort to enact new Income Tax Bill from this fiscal year, the Bill could not even be tabled in the 19th Parliamentary Session due to entire disruption of House by the oppositions.

The existing Income Tax Act that was amended eight times during 27 years was unable to include new income sources and thus failed to widen the tax base. The existing Act has classified income sources into five categories but they are not scientific and could not incorporate all sources of income under the tax-net.

In spite of the support from some tax experts to amend the existing Income Tax Act, there was a need to draft a scientific and globally accepted law. As an effort to formulate modern income tax act the new Bill was constructed with a long exercise of more than four years.

The newly formed Bill could not receive warm response from various sectors since it has been cited as being obscure and ambiguous, which the experts claim is hard to understand even for the tax experts.

The new Bill also drew criticism from various quarters especially for taxing the retirement income and imposing the capital gains tax. Experts are opposing these taxes on the ground of social justice, claiming that retired employees cannot be compared to the incumbent ones.

The main feature of this Income Tax Bill is its equal treatment to all types of income earners. And may be the provision of taxing retirement income is the outcome of the idea.

The new Income Tax Bill classifies income sources into three categories namely employment, business and investment and would bring all income sources under the tax net. But how well the tax officials would be able to distinguish the income sources from these categories, would depend upon its effectiveness.

The new Income Tax Bill has proposed to tax all sorts of capital gains incurred by an individual or businessmen. Capital gains tax has been introduced to the new Bill with the sole intention of broadening the tax base, even going against the world practice.

The capital gains tax proposed in the new law seems to have almost no effect on the business community whereas it will have relatively higher effect on the general mass. In real sense, no business asset is sold at higher price than the cost price, which means no capital gain is made in such transaction.

In contrast, the inclusion of capital gains tax on transaction of land and houses is likely to push up the prices of the real estates. Principally, the land seller would be liable to pay capital gains tax but in reality, the sufferer would be the purchaser. Also, he would be subjected to dual taxation: once in the form of registration fee and again as capital gains tax. Furthermore, capital gains tax is also likely to affect investment decisions.

Inclusion of strong punitive measures for tax evaders has been flayed by businessmen, but it is one of the positive aspects of the Act. But as most of the tax experts say, our problem is not with the laws but with their implementation. Much rests on effective implementation.

The new Income Tax Bill has also changed the appeal procedure, with an aim to solve the problems within the Inland Revenue Department before going to court. As claimed by tax authorities, the new Income Tax Bill has also reduced the discretion power of tax officials and has started cent per cent self-assessment system.

But without skill development training for tax officials and without a proper orientation regarding new Income Tax Bill, it is likely that the objective of new Income Tax Bill will not be fulfilled. In this context, there is a need for a change in the attitude of tax officials, taxpayers and government as well for the proper implementation of new Bill.

Indian official says Kalapani ‘disputed area’

By Lokendra Bista

BYAS (Darchula), Oct 17 - Indian officials have, for the first time, accepted that the 372 square kilometres of Kalapani area is a disputed area between Nepal and India.

Kalapani is situated in Byas Village Development Committee of this North Western frontier district of Nepal.

After the joint inspection of the Kalapani area recently, Chief District Officer of Darchula Bedprakash Lekhak told The Kathmandu Post that his Indian counterpart Rajeev Joshi admitted the fact that it is a disputed area.

The Indian government deployed its special military forces in the Nepali territory after the Indo-China border war in 1962. Nepal has been asking the Indian side to withdraw its forces from the occupied area. The Indian occupation in the Kalapani area has been one of the major stumbling blocks to the friendly relations between the two countries.

Nepal has been saying with historical evidences that Limpiyadhura, the origin of the snow-fed Mahakali river dividing Nepal and India in major stretches, is the actual border between the two countries in the North Western region, which is also a tri-junction area between Nepal, India and China.

But Indian side has claimed that a small rivulet originating from east of Lipu Lek is the origin of the Mahakali River and that divides both the countries, which the Nepali side has refused to subscribe their views.

Meanwhile, the Indian government has deployed about 8,000 paramilitary forces of the Secret Service Bureau (SSB) along the 185 km long North Western border between Nepal and India in order to "control cross-border crimes and other forms of illegal activities." The SSB force has been deployed there since September 16.

FNNTE announces 33 pc discount to students

Post Report

KATHMANDU, Oct 17 - Federation of Nepalese National Transport Entrepreneurs (FNNTE) today issued notices to bus, mini-bus and micro bus owners to provide 33 percent discount in its transport fares to students.

"We now ask owners of bus, mini-bus and micro bus to provide 33 percent discount to students as the Labour and Transport Ministry has already implemented the cabinet’s recent decision for a concession of 40 percent in vehicles tax, and a reduction of 40 percent in the renewal fee of road permit," said a press release issued here.

Nearly six months ago, the government had asked these public vehicles for the concession to the students, in response to which these entrepreneurs were seeking for tax concessions.

Meanwhile, Clean Locomotive Entrepreneurs’ Association of Nepal issuing a press release said that it has increased the fare of all "safa" tempos under the association effective from October 21. "The minimum fare will be Rs six from October 21," said the release. These tempos’ current minimum fare is Rs five.

According to the release, the reason for the price hike is the increment in electricity tariff and the hike in various accessories of the tempo.

Koirala flays Maoists for disrupting social structure

Post Report

KATHMANDU, Oct 17 – The President of the Congress Party Girija Prasad Koirala today once again accused the Maoists of trying to disrupt the social structure of the country and claimed that he had started a campaign to make life normal for the people affected by the six year old insurgency.

"I am concerned about those people who are not able to go to their homes for Dashain, and I want to make sure that in future they go home for every festival," Koirala said during a private tea reception for journalists at the capital today.

Koirala also said that the Maoists were constantly targeting the Constitution as it held the spirit of democracy. "We should be aware and protect the three things which the Maoists are hitting at-the Constitutional Monarchy, Democracy and Constitution. The Maoists are attacking the Constitution as it holds the crux of democracy and the Constitutional Monarchy," he added.

Koirala also said that the objectives of the Maoists were not right and they were trying to disrupt the religious and communal harmony of the country.

About his campaign to establish normalcy in the Maoist affected districts Koirala said that he had already talked with top leaders of all major parties and would start working in the field soon.

Meanwhile, Koirala made a similar statement in Damauli earlier today addressing a party workers’ meet organised by Nepali Congress Tanahu, working committee at Damauli. Our Correspondent from Damauli writes that Koirala said that Nepali Congress can never agree to change the Constitution and the party was totally against declaring Nepal a republic.

During the same occasion Govinda Raj Joshi said that when the world is fighting terrorism this is ideal time to finish terrorism from the country by using force.

Tirtha Ram Dangol, former minister also spoke on the occasion.

Former DPM Poudel calls for Special Session

Post Report

KATHMANDU, Oct 17 – Former Deputy Prime Minister Ram Chandra Poudel today demanded the government call a Special Session of Parliament so that important anti-corruption Bills can be processed through Parliament.

"It is of serious concern that these important anti-corruption Bills cannot be pushed through Parliament this Session as promised by the government," he said. "The government should call a Special Session."

The Session prorogues on Thursday. The Bill brought to amend the Commission for Investigation of Abuse of Authority (CIAA) and the Corruption Control Bill is being discussed at the State Affairs Committee but not much progress has been reached.

"The government has failed to bring in a revolutionary land reforms programme as promised," he said referring to the much-criticized Land Reforms (Fifth Amendment) Bill presented by the government.

He further went on to say that even the Parliament has failed to address issues like corruption, unemployment, poverty and the growing violence.

Speaking on the same line, Khadga Prasad Oli of the main opposition CPN-UML said the anti-corruption Bills need to be endorsed as soon as possible and the government needs to immediately bring in the Dalit and Women Commissions.

Lawmakers also welcomed Speaker Taranath Ranabhat slashing the Dashain allowance, as the budget does not specify allocations of such funds. Even the Auditor General’s Office (AGO) has questioned the allowance which is Rs. 15,200 for each of the lawmakers.

Hom Nath Dahal of the NC said it was not just the Dashain allowance, but the vehicles imported by lawmakers and special class bureaucrats at duty free privileges should also be returned, as there was no laws to support the move.

The privileges were reached through a Cabinet decision few years ago that was severely criticised and mocked.

Language Bill tabled

Post Report

KATHMANDU, Oct 17 - Much-awaited Non-Governmental Bill on language got tabled on Tuesday in the Lower House with the combined signatures of lawmakers of three different political parties.

As according to the House of Representatives’ regulations, 2054, Narayan Man Bijukchhe of Nepal Workers Peasant Party, Paree Thapa of People’s Front and Lilamani Pokharel of United Front signed a Bill on language before tabling it.

The press release issued by the Nepal Tamang Ghedung stated that eventhough the Constitution says Nepal is multi-lingual country, none of the government after it was framed initiated to preserve and promote various dialects.

The release also said that the Bill was prepared after several rounds of discussions among the noted linguists.

The ethnic groups have been accusing the government for brushing aside their demand of promotion of different dialects.

India bans plastic products from Nepal

BIRATNAGAR, Oct 17 (PR) – India has decided to ban the import of plastic products with less than 20 micron just a day before the Nepal-India Secretary level talks begins in New Delhi.

This happens to be the sixth such Nepalese products that has been opposed from entering the Indian markets citing the lack of plant quarantine check post.

This decision will have a critical impact on over 100 plastic industries located in eastern Nepal from where plastic products equivalent to NRs 760 million are exported to various Indian markets annually.