Recommendations on Nepal-India Trade Treaty submitted

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KATHMANDU, Sept 20 - A delegation of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Confederation of Indian Industries (CII) led by Ravi Bhakta Shrestha, President of FNCCI, submitted recommendations on Nepal-India Trade Treaty jointly prepared by FNCCI and CII to Prime Minister Sher Bahadur Deuba today.

According to a press release received here today from FNCCI, the delegation put upon its 11 points recommendation related to Nepal India trade treaty. Among others, the recommendation has pledged that the council would accelerate their efforts to attract more Indian joint investments in Nepal. Similarly, the council will also put its maximum effort to increase Nepal’s export to India.

Stressing the need of self renewing of the treaty, the FNCCI-CII joint council has stated that the treaty must address the problems that has arise in the process of Nepal’s entry to World Trade Organisation(WTO).

The joint council has also made a recommendation to introduce value addition in the goods to be exported to India manufactured by foreign inputs. However, it has also stated that such local value addition should be gradually increased up to 30 percent.

Once the technical committee under the Department of Industry clears the certificate of Origin, the further export Process should not be disturbed, states the recommendation.

The council has demanded that the Joint Economic Council should be allowed to draw a clear definition of surge and the definition of manufacturing should be modified, states the press release.

The joint council has stressed that the customs should be modernized and problems related with testing laboratories and plant quarantine should be solved soon.

"The Prime Minister appreciated the efforts of the joint council to prepare the recommendations," states the release.

Drastic surge in kerosene demand

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KATHMANDU, Sept 20 – There has been a drastic surge in the demand of kerosene in the past one month primarily due to the shift of increasingly large number of transporters towards its use, as a substitute to diesel.

More and more diesel operated vehicles these days are being fueled with the cheaper kerosene along with mixing some lubricants, suitable for diesel vehicles. However, what the transporters do not know is the impact, which the use of kerosene can have on engines in the long run.

Automobile experts say that the use of kerosene instead of diesel could reduce the life of the engine by half. "The most severe effect would be on the diesel fuel pump, which is one of the most important parts of the diesel engine. In addition, the use of kerosene will cause excess deposition of carbon inside the engine and that will reduce its compression," said an engineer associated with Sipradi Trading.

He also informed that mixing of kerosene with the diesel would not harm the engine if it is carried out in a calculated manner. "The manufacturers themselves recommend to mix 5 to 10 per cent kerosene with diesel in the extreme cold whether condition," he added.

Though most of the transporters know that the use of kerosene as the fuel can devastate the engine, but interestingly, they claim that the price difference between kerosene and diesel is so huge that the maintenance cost of the pump can be easily recovered.

"Only fifty percent of the amount saved by using kerosene will be enough for the maintenance of the pump,’ said a transporter under the condition of anonymity.

This swelling use of kerosene in the vehicles has not only made the concerned experts worried, but also the top brass of Nepal Oil Corporation (NOC), the state-owned monopolist for the import of petroleum products.

Madan Raj Sharma, Executive Director of NOC also said that the sell of the kerosene in recent months has increased dramatically. "Beside outflow of kerosene to India through the open boarder, widespread use of kerosene as the replacement of diesel in the heavy vehicles is the chief reason for the soar in selling of kerosene."

The statistics obtained from the NOC also conforms that the sale of kerosene has soared by almost 9 per cent in the last three months while, in the same period, the sales of diesel has declined by over 29 percent.

"The sales trend observed in the recent months clearly indicate that more and more heavy vehicles have started using kerosene observing huge amount of subsidized kerosene for the specific use of cooking purposes," said Sharma.

According to NOC officials, one of the night-buses heading towards the capital was caught red-handed recently in Bhairahawa while refueling kerosene in Ansari Diesel Suppliers, a local refueling station. The local administration has initiated necessary action against both the owners of bus and refueling station. "The Department of Transport Management will take action against the owner of the bus while NOC will take actions against the refueling station," said Sharma.

Rupee plunges by 20 paisa

KATHMANDU, Sept 20 (PR)– Fourth time in less than two weeks, the official exchange rate of Nepalese rupee (NRs) depreciated by 20 paisa against the American dollar to touch a record low closing today.

The official selling rate of NRs vis-à-vis US dollar skidded to Rs 76.60 today against Rs 76.40 recorded yesterday. The rupee has depreciated by 30 paisa against the US dollar on last Monday to Rs 76.40.

The continuously weakening Indian currency (IC) against US dollar is the chief reason behind such series of depreciation of the domestic currency.

At the present rate of the NRs against dollar, the rupee has depreciated by 1.32 percent (Rs 1) since the deadly terrorist attacks on the key American installations on September 11.

Motorbikes import floods market

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KATHMANDU, Sept 20 - Overwhelming import of various brands of motorbikes has flooded the local market, making the discerning customers baffled. Every new brand’s bikes come with at least one additional feature but the price tag is almost similar.

The entry of Indian bikes in the late 1980s, manufactured in collaboration with Japanese companies, almost replaced the Japanese bikes, which were the single dominant player in the domestic market. High price and lack of spare parts were the major factor that drove away Japanese bikes from the cash-strapped Nepalese customers.

Some brands claim that their bikes are fuel-efficient while others say that their motorcycles are powerful. Some others proudly say that the prices of their products are competitive and others say their motorcycles are cost-effective in terms of maintenance.

Bibek Tiwari of Bafal says the market of bike is quite confusing. Some say their bikes are sturdy and have better performance, others say their bikes are sleek and fuel-efficient. So it is very difficult to choose from among the available brands.

Mahendra Shrestha of Balaju also has a similar problem. He says some bikes are chic but their engines are not good. Therefore, the difference between elegance and performance is very deceptive, he adds.

Even the authorized distributors of some bikes admit that the present market of bike is quite confusing. Since every new brand of bikes come with some new features, buyers cannot decide on purchasing a bike that suits their need.

Laxman Ratna Tuladhar, Director Syakar Company Ltd, the sole distributor of Hero Honda motorbikes, says that buyers have to be cautious now as various brands of bikes are available in the market and their prices are almost same especially in case of Indian bikes.

Though Indian bikes have major market share, Chinese motorbikes are also making their debut in recent times, thanks to their additional facilities, elegance and affordable prices. The increase in the import of Chinese bikes has snatched the market share of Indian motorcycles.

Indian bikes like, Eliminator, Croma, Calibre, Aspire, Boxer CT New, Boxer CT, Saffire scooter of Kawasaki company; Crux, YD125, YBX of Yamaha Motor Company; Fiero of TVS Suzuki, an Indian company; Hartford of Taiwanese company; Dayang and Sundiro, Jongshen, Jailing of Chinese company; Joy, Passion, Street 100 scooter, Splendor and CBZ of Hero Honda company of India are some of the best selling brands.

Adhir Kumar Shrestha, senior sales officer at Mandela Overseas Super Trading Pvt Ltd, sole agent for Hartford Chinese bikes, says the sale of Chinese bikes of different makes is growing because of their additional facilities, comfort and lower prices compared to Indian bikes.

The price of an Indian two-wheeler ranges from Rs 69,000 to 127,000 while a sophisticated 150 cc Chinese motorbike costs as high as Rs 188,000 in the local market, including all taxes.

Radheshyam Lamsal, Manager Bajaj Auto Limited, sole distributor of Kawasaki Bajaj, says customers are attracted towards Indian bikes for their reliability, durability and after-sales service and spare parts.

Sayal N Singh, Assistant Sales Manager at AIT Pvt Ltd, one of the distributors of TVS Suzuki, says Indian bikes have edge over other bikes for their low maintenance cost and high performance. Similar is the version of Madhav Aryal DGM at Morang Auto Works, the sole distributor of Yamaha bikes.

However, the import of Indian and Chinese bikes and scooters and to some extent bikes of other brands is steadily rising over the past one decade. The total number of bikes registered across the kingdom till fiscal year 1989/90 is 32,776 units. The number of bikes irrespective of their makes has increased five-fold over the past one decade, making the two-wheelers’ total units 176,476 by the end of fiscal year 2000/2001.

According to statistics provided by Department of Transport Management, there has been remarkable rise in the registration of motorcycles in fiscal year 2000/2001, in which year a total of 29,291 pieces of two-wheelers were registered with the Department. The figure in the previous fiscal year stands at 19,755. And of the total import, 112,000 two-wheelers are registered in the Bagmati zone alone.

The basic reason behind the soaring import of two-wheelers is the hire/purchase schemes launched by various finance companies, cooperatives and banks. High liquidity has compelled financial institutions to invest in bikes and light vehicles. Such institutions offer loans at reasonable interest rates and on considerable installments, which enables fixed income earners to buy them.

Similarly, routine traffic congestion due to narrow lanes has also prompted Kathmanduits to purchase two-wheelers. Of course, affordability is the prime factor.