No response to HTF privatisation

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KATHMANDU, April 16:Even as the extended deadline for the submission of bids to purchase Hetauda Textile Factory (HTF), the largest financially bankrupt state-owned textile factory, expired today the government, like the first call, received no response.

A well-placed source at the Ministry of Finance informed The Kathmandu Post that not a single private party submitted purchase proposal till the last date. When asked about the next step of the government, he said that the government has not yet decided on its next steps to address the ‘record-low cold response’ from the private sector, but hinted that it is not considering extending the bid-submission deadline next time.

"Since we received no response from the private sector, it is worthless to extend the deadline again without changing the present terms and conditions," said the source. However, he also said that the government could change the present modality to make the offer more attractive to the private sector. Despite the zero response from the private parties for taking up the industry during the first call, the ministry had clarified that it would not change the conditions and procedures of the tender call.

No response to the latest call from both the national and international private party has come a major blow to the governments’ renewed commitment to speed up the snail-paced privatisation process. The donors, during the recently concluded meeting of Nepal Development Forum, had urged the government to accelerate privatisation process.

Furthermore, the second consecutive zero response also comes as a surprise for the government and other independent experts particularly at a time when both the government and private sectors are urging for more comprehensive participation of private sector in the privatisation process. However, the private sector cites unfavourable investment environment as the major reason for their distraction.

Established over 25 years ago with an investment amounting to over Rs 200 million with technical and financial assistance from the Government of China, the textile factory was one of the most successful state-owned ventures until a decade ago.

However, the factory started to face financial turmoil in the post-democratic era mainly due to financial irregularities and heavy politicisation among the trade union.

The government ultimately took a bold decision of privatising the industry after laying off all its employees in February 2001. Subsequently, it closed down the industry and released Rs 250 million to pay the salaries and allowances of over 1,100 employees.

Presently, the industry has a negative net worth. While the factory’s net liabilities stand at around Rs 500 million, the government’s total investment is well over Rs 340 million.

Measures to extend concessions to hotel industry sorted out

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KATHMANDU, April 16: A crucial meeting of Hotel Association Nepal (HAN), Nepal Rastra Bank (NRB) and the commercial banks held here Monday has finally sorted out measures to extend the long-awaited concessions to the hotel industry that was declared sick by the government almost three months back.

"The meeting has finally sorted out the skirmish that had been going on even after the government’s announcement of the incentive packages to revive the hotel industry, among others," said Narendra Bajracharya, president of HAN, talking to The Kathmandu Post today.

The government had announced a number of measures to revive the ailing tourism sector, including the extension of soft loans at 6.5 per cent interest rates, rescheduling of past loans, freezing of interest to hotels and waiving the penal interests.

Besides, the central bank had agreed to refinance commercial banks at only 2.5 per cent for loans that go to the hotel business. As per the understanding reached among the three sides on Monday, the banking sector would cooperate with the hotel industry to rescue it from the present crisis.

Commercial banks, during the meeting, agreed to answer to the proposals put forward by hotels seeking loans within ten days of submission of the proposals. Similarly, the central bank would provide the necessary back-up to the commercial banks in illiquid situations.

Despite the government’s announcement of the incentive packages, and hotels’ repeated plea to the commercial banks for soft loans, lack of procedural clarity and ambiguity had rendered the incentive packages ineffective so far.

Concerned entrepreneurs claim that the country’s hotel industry that has outstanding loans from commercial banks to the tune of almost Rs 14 billion is facing severe shortage of working capital.

"With the latest understanding, it can be hoped that the hoteliers will get the necessary capital to keep their hotels operating," said Bajracharya.

The government’s announcement had come as a relief to the hotel industry that has been fledging through tough times lately. The downturn began with the hijacking of Indian Airlines plane on December 24, 1999, followed by the service charge row, the June 1 Royal carnage and the September 11 terror strikes in the US.

The chain of events has badly affected tourism inflow into the country, which heralded a new crisis to the hotel industry.

DNY programmes decided

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KATHMANDU, April 16: The meeting of the main committee of Destination Nepal Year (DNY) 2002-2003 held under the chairmanship of Minister for Culture, Tourism and Civil Aviation Bal Bahadur KC today finalised the programmes to be organised during the current fiscal year.

According to a press release issued at a press conference here today, the meeting also gave a green signal to the logo designed for the DNY campaign. The ministry has urged all related businessmen, entrepreneurs and offices to use the logo during the campaign period.

Today’s meeting also decided to take measures that would ensure a long stay of tourists and to increase the inflow of visitors that has greatly plunged since last two years. The government had announced the two-year DNY campaign with a view to revamp the ailing tourism sector as a whole, states the release.

The meeting also proposed to make necessary changes in existing legal and policy framework to ensure a sustainable growth of the tourism sector. Furthermore, the meeting contemplated over the possible extension of the DNY campaign period to five years in the present lowly state of domestic tourism.

During the DNY campaign, while Golden Jubilee of the conquest of Mt Everest would be a major attraction, others include various cultural and adventurous programmes.

In addition, the government will also bestow a national felicitation and honour upon a foreigner who has extensively carried out expeditions in Nepal. Furthermore, the committee also decided to establish a separate training institution for expeditions and mountaineering.

The committee also decided to invite prominent journalists, travel and tour operators and various dignitaries on fam trips to Nepal. Those who played a vital role in promoting Nepal as tourism destination would also be honoured, the release says.

The main committee of the DNY campaign also decided to make necessary air arrangements with China and India to increase the flow of tourists from the two neighbours.

Likewise, the meeting laid special emphasis on tapping the tourism potential of the neighbouring countries. The main area of thrust would be on religious tourism. Nepal, with holy places such as Pashupatinath, Lumbini, Janakpur and Muktinath, would be successful in achieving its targets, the release states.

With a view to further supplement Nepal Tourism Board’s efforts to promoting Nepal in the international arena, the meeting today decided to incorporate new and special programmes.

Various promotional programmes to be organised in various Chinese cities and other programmes to develop the necessary human resources back home were also decided.

Kantipur Publications, NCC ink cooperation pact

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KATHMANDU, April 16:A Memorandum of Understanding (MoU) was signed between Kantipur Publications and Nepal Chamber of Commerce (NCC) here today to enhance mutual co-operation.

Kailash Sirohiya, Managing Director of Kantipur Publications, and Surendra Bir Malakar, Second Vice-President of NCC, signed the MoU on their respective behalf. Director of Kantipur Publications Binod Raj Gyawali and President of NCC Rajesh Kaji Shrestha were also present on the occasion.

The newly signed MoU between the NCC, which has been making a remarkable contribution to the development of industry and commerce since the past five decades, and Kantipur Publications, which has been serving the nation as a leading media house for the past nine years, is valid for five years.

As per the MoU, the signatories will make joint efforts for the economic development of the country. The NCC would make available necessary international and domestic business information, books, and other related materials to the Publications at free of cost.

Similarly, NCC would also ensure the participation of representatives from Kantipur Publications in international and national trade fairs as far as possible. While NCC would share information about its activities with the Publications, the Publications would publicise them on a priority basis.

Both the parties would also be engaged in promotional activities in the areas of information technology (IT), which would ultimately help in the development of trade, commerce and industry. In this regard, they have agreed to organise seminars on industry, commerce and IT from time to time.

Speaking at the signing ceremony, Kailash Sirohiya said that the MoU aims at strengthening joint efforts to address the current economic difficulties. He also expressed hopes that enhancement of mutual cooperation between a leading business organisation and a media house would be helpful in reversing the existing economic slowdown.

Likewise, Rajesh Kaji Shrestha highlighted the past mutual cooperation between the Chamber and the Publications. He also appreciated the role played by the media in creating economic awareness amongst the people and said the understanding is a big step towards bridging the gap between the media and business organisations.

Binod Raj Gyawali said that the Publications is committed to its responsibility of ensuring maximum coverage of economic information. Likewise, Surendra Bir Malakar expressed happiness over the signing of the MoU and added that both the organisations would be benefited through experience sharing.

Yubaraj Ghimire, joint-editor of The Kathmandu Post, and its sister publication Kantipur, a vernacular national daily, said that the Publications has given high importance to economic news and assured of more comprehensive coverage in days to come.