Bhojpur awaits road link
Deuba praises army for its role in dev

Dhankuta, Aug. 14 (RSS): Prime Minister Sher Bahadur Deuba inaugurated the 26.5 km Hile-Leguwaghat section of the Leguwaghat-Bhojpur road (Naradmuni Thulung Highway) constructed by the Royal Nepal Army, at a function at Hile, Dhankuta today.

The Royal Nepal Army was involved in the road project as per the government policy of involving the army in development and construction work as outlined in the Eighth Plan.

The total length of the feeder road standard highway is 83 km and it links Hile to Bhojpur district headquarters.

The highway, which will also serve as an entry road to the Arun Valley, will cost about Rs. 788 million. Out of this total cost Rs. 126 million has been spent so far. The per kilometer construction cost of the road is estimated at Rs. 3 million.

It took four years and three months to complete the road for which the foundation stone was laid at Pakhribas in Fagun, 2052 B.S.

Means of transport have already started plying on the newly constructed road benefitting a large number people in the area.

According to National Planning Commission member Dr Jagdish Chandra Pokhrel, the remaining portion of Naradmuni Thulung Highway, reaching up to Bhojpur will be constructed with the assistance of DFID, a British International Development Assistance Organisation.

The newly constructed section of the highway was handed over to the Department of Roads/Ministry of Physical Planning by the Royal Nepal Army at a function organised at Pakhribas today.

Prime Minister and Defense Minister Deuba, inaugurating the newly sonstructed road said that the Royal Nepal Army has been involved in development and construction work to augment its role.

In the context of the Royal Nepal Army completing development and construction work speedily and in a cost effective and disciplined manner, it should be encouraged to further involve itself in building development infrastructure like roads and irrigation and drinking water projects.

Stating that thanks to its glorious past, the Royal Nepal Army has earned high esteem in the world, he said the contribution of the army to peace keeping missions has further enhanced its glory.

Chief of the Army Staff General Prajwalla Shumsher J.B. Rana was of the view that with its involvement in development and construction activities the Royal Nepal Army can be a reliable development support for the government.

Meanwhile, in Dhankuta, Prime Minister Sher Bahadur Deuba has said that the government will leave no stone unturned to help the 23.4 million Nepalese people’s desire for peace materialise.

Prime Minister Deuba, who was addressing a gathering organised by the Nepali Congress Dhankuta district committee at Pakhribas today, said thanks to the cooperation of various political parties including the Nepali Congress the government is fully committed to resolving the Maoist problem.

Given the popular faith in and respect for the Monarchy, one should hold in high regard this popular faith in the institution of the crown regardless of one’s own principles or ideals, he said, adding any attempt to weaken the Monarchy will weaken the country as well.

Stating that the government is making effort to expedite the country’s development process through optimum utilisation of limited resources, Prime Minister Deuba called for a concerted effort to banish poverty, unemployment and illiteracy.

DFID, a British Organisation, has pledged financial assistance for completion of the Naradmuni Thulung Highway, he said, adding when Sankhuwasabha is linked by road the Arun hydroelectricity project might be revived.

MP Keshav Thapa said as the country’s development is not possible in the absence of peace, it is the responsibility of one and all to cooperate with the government in resolving the Maoist problem through dialogue.

MP Tanka Rai stressed the need for the government to implement the Arun III hydropower project.

The NC Dhankuta district committee presented a memorandum to the Prime Minister demanding measures for the resolution of various problems facing the people in Dhankuta.

NC village committee president Harka Bahadur Gurung presided.

Govt, Maoists urged to be sincere in dialogue

Kathmandu, Aug. 14 (RSS): Leaders of various political parties have said that both the government and the Maoists should be sincere in making the dialogue between them reach specific conclusions and the other political parties and civic society should also be willing to extend constructive cooperation in this regard.

Stating that no problem could be resolved by resorting to violence and murder, they pointed out the need for all to forge ahead on the basis of concurrence to eliminate the economic, social, political aberrations and inequality peacefully.

At a face-to-face programme hosted by the Reporters Club of Nepal here today, central member of the Nepali Congress Arjun Narsingh KC said that his party had always been calling for peaceful resolution of the Maoist issue and the central committee had given its mandate to Prime Minister Sher Bahadur Deuba to take the process of dialogue ahead.

CPN-UML leader Jhalanath Khanal said that creation of conducive environment for dialogue between the government and the Maoists was a pleasant aspect and his party would extend positive cooperation to materialise it.

RPP general secretary Pashupati Shumsher JB Rana said Maoists rebellion got instigated due to socio-economic and political inconsistencies in the country and all the political parties should be sensitive in resolving it.

Rajendra Mahato of the NSP said that both sides must be serious to ensure the success of the talks between the government and the Maoists.

CPN-ML leader Radha Krishna Mainali said that the Maoists too should shun violent activities just like the government and the opportunity for dialogue should not be lost.

Club chairman Rishi Dhamala was on the chair.

Nepal-India trade treaty
Indian govt proposes review of treaty

BY RAMESH LAMSAL

Kathmandu, Aug. 14: Indian government today sent a proposal to Nepal seeking the review of Nepal-India Trade Treaty 1996.

"The government of India has conveyed to the Nepalese government its desire to seek a review and revision of certain provisions in the Nepal-India Treaty of Trade before extending the validity of the Treaty beyond December 5, 2001," Indian Embassy said in a press release.

The press release also said that the Indian government had invited the Nepalese delegation to Delhi at the earliest to discuss the matter. "The Indian government is confident that mutually acceptable solutions to address the concerns of both the countries would be arrived at through consultations," stated the press release.

India’s proposal to review the 1996 Trade Treaty has come just over a week after Nepal and India signed a 25-point minute agreement in Kathmandu to resolve the trade related problems that have surfaced with its implementation. The two sides signed the minute during the first week of this month.

The talks between the two countries had got extended longer than scheduled as the two sides failed to agree on what the Indian side called the excessive export of certain Nepali products to their country. Such Nepali items, according to them, were vegetable ghee, copper wire, zinc oxide, acrylic yarn, and iron and zinc pipes.

Indian side had said that the export of these items to India had ‘surged’ over the years hurting the Indian industries particularity in the states bordering with Nepal and demanded for export restriction or 30 per cent value addition in these items before they would be imported into their country. The Nepalese side, however, had disagreed with their argument of surge; neither did they agree with the Indian officials that the export of Nepalese products posed a threat to the Indian industries. The Treaty allows the duty free access of Nepalese goods to Indian market.

Signed between the two countries in 1991 and further modified in December 1996, it also has a provision of an automatic renewal in every five years unless one of the parties gives a three-month advance notice seeking its termination.

Commerce Ministry source said today that India may have sought a review of the Treaty over the issue of surge itself. The source said the problem could be solved through bilateral consultations and suggested various solutions. "The problem can be resolved once we define what is ‘production’ and ‘origin’ of products. Taxation measures or quota system could be other solutions," it said.

Joint Secretary at the Ministry Purushottam Ojha said the Nepalese side would now respond to the proposal through the diplomatic channels, adding the problem could be solved before or on December 5. He said the two countries could talk on the issue during Indian Foreign Minister Jaswant Singh’s visit to Nepal this week.

Asked how would the proposal to review the Treaty would affect the accord between the two countries to resolve trade related bilateral issues, Ojha said, "It does not hamper the process directly but it may have an indirect impact."

In the regular talks early this month, Nepal’s agenda included the extension of railroad extension to Birgunj, recognition of NS mark in India, improvement of physical infrastructure at land-border customs points and co-operation between the two countries to establish export processing zones (EPZs) in Nepal.

The two sides had agreed to make the best efforts for finalisation of railway operation agreement for operating the Birgunj Inland Clearance Depot (dry port) and the agreement on regulation of vehicular traffic. They also reached an understanding to enhance the process of agreement between Bureau of Indian Standard and Nepal Bureau of Standard and Metrology.

IPC not a bidder for BPC?

BY NAVIN SINGH KHADKA

Kathmandu, August 14: Independent Power Corporation (IPC) is not one of the two bidders for the 75 per cent shares of Butwal Power Company, Finance Ministry officials said here today while Chaudhary Group (CG) claimed that it has taken part in the bidding together with the American-British joint venture company.

"There is not a single document in the technical bid of the Chaudhary Group that shows that IPC is a bidder for BPC shares," said a highly placed official at the Finance Ministry, not wanting to be named. "In other words, Chaudhary Group does not have any consortium with IPC in this bidding process."

Corroborating that claim, Douglas Clark, Resident Advisor at the Privatization Cell of the Finance Ministry said that there is no mention of the IPC in the bid as an equity-holder. "The bid has only Chaudhary Group’s name."

BPC’s privatization process, for the second time in the last three years, has two final bidders that had submitted their technical and financial bids last February. One of them is Interkraft Nepal, a consortium of a Norwegian private company with 11 Nepalese companies.

The other, as stated by the officialdom, is the Chaudhary Group whose technical bid was disqualified last week. "If only CG had come with IPC for the bidding, perhaps its technical bid would not have been disqualified," said the senior official, further elaborating that it was a must for the bidder to have the experience of having produced at least 30 MW electricity. "In Chaudhary’s case it does not have the track-record of having produced even five MW of electricity."

Binod Chaudhary, Chief of Chaudhary Group, dismissed the official claim. "It is nonsense to say that IPC is not one of the bidders. I challenge them (the officialdom) to prove that IPC is not with CG’s consortium to bid for BPC’s shares." He further claimed that his technical bid also includes the Joint Venture Agreements between CG and IPC – the latter, he says, has the credit of having produced 1,800 MW of electricity.

Accusing his competitor and its well wishers of resorting to unfair tactics, Chaudhary claimed that his financial bid was certain to be better than that of his rival. "That is the reason why this game is being played even before the financial bid was opened. Our technical bid has been disqualified on flimsy grounds."

Officials in the Finance Ministry, however, said Chaudhary was resorting to IPC card since he knew that his company alone was in no position to win the fray. "Otherwise, there is no point talking about the company (IPC) that is not at all in the scene," said the official.

Meanwhile, Finance Ministry yesterday postponed indefinitely the date to open the financial bid of Interkraft Nepal as, ministry officials said, senior government officials could not be present for the formality – that also requires the presence of top officials from the Ministry of Water Resources.

It is during the time when Interkraft Nepal’s financial bid will be opened, the Finance Ministry plans to return CG’s financial bid unopened. "CG’s financial bid will not be opened since it has already been disqualified in the technical bid," said the official.

"In the same forum (where Interkraft Nepal’s financial bid would be opened), we will open our financial bid and will show to the world what our offer was," Chaudhary challenged.

This is not the first time the BPC privatization has kicked the dust of controversy. The first bidding had to be scrapped off last year after IPC – one of the two bidders – blamed the government of favouring Interkraft, the other bidder then. That was after both the parties were asked to revise their financial bids – earlier quoted at Rupees 135 per share (conditional) and Rupees 90 per share (Unconditional) by Interkraft and Rupees 109 per share by IPC.

Later, responding to the government’s demand to revise the offer, Interkraft offered Rupees 115 per share (unconditional) while IPC did not change its rate (Rupees 109 per share).

BPC’s 75 per cent share amounts to 6.2 million shares with the present price tag of Rupees 100 each.

House informed of damage caused by calamities

Kathmandu, Aug 14 (RSS): Home Minister Khum Bahadur Khadka, making a statement of public importance at the House of Representatives meeting today, said flooding in the Sisne River triggered by heavy downpour at Laxmipur VDC in Dang district swept away a jeep with plate No. Ra. 1 Ja 223 killing Amrit Bishwokarma who was travelling in the jeep.

Similarly, flooding in the Patre Phalne River bordering Manpur and Bijaura VDCs in the district swept away a truck with plate No. Lu. 1 Kha 2690 and flooding in the Sewar river swept away a rented jeep with plate No. Ra.1 Ja 214, he further said.

Minister Khadka further said lightning struck the house of Bhagawati Sarki at Shukranagar VDC-8 Chitwan district on August 13 and her daughter-in-law became unconscious and is now undergoing treatment at Bharatpur Hospital.

He also informed the House that Chandra Bahadur Bishwokarma, Sete Sarki and Kamal Prasad Pokhrel of Prapcha VDC in Okhaldhunga district died in a landslide triggered by heavy downpour on August 9, 17 others including Pancha Bahadur Sarki of Prapcha, Harkapur and Katunje VDCs are feared to have been buried in the landslide, Tej Bahadur Sarki and Januka Sarki of Prapcha VDC have been brought to Kathmandu by helicopter for treatment, Mitra Prasad Pokhrel of the same VDC is receiving treatment at the local Mission Hospital and immediately after receiving news of incident, a team led by the CDO went to the site and started rescue operation and health personnel also went to the site.

About 1,600 meters of pipe brought for Keurini Drinking Water Project and two water tanks were completely destroyed and three water mills were swept away by the floods, he said, adding that a landslide that took place at Suryamati VDC-2 in Nuwakot district destroyed the house of Krishna Bahadur Thapaliya and his brother is undergoing treatment at local Trishuli Hospital. A total of 28 people have already died of cholera and gastroenteritis at Bhii and others VDCs in Mugu district and Phagam VDC in Rolpa, he further said.

The CDO’s of all districts affected by the floods and landslides have already been instructed to make necessary arrangement for providing relief to the victims in coordination with the district level offices, Red Cross, people’s representatives and social institutions, he noted.

UML’s belated unity move positive: ML

Kathmandu, Aug. 14 (RSS): The eighth plenary meeting of the CPN-ML has held serious discussions on the current political landscape, the context of the proposed talks between the government and the Maoists, national consensus for political reforms, comprehensive leftist unity, and the prevailing condition of the party and taken some decisions, it was stated at a press conference hosted by the party here today.

The meeting has stated that the belated move by the CPN-UML for leftist unity was a positive step and has constituted a unity talks committee with politburo members Ashok Rai and Trilochan Dhakal as members and Siddhi Lal Singh as convenor, it is learnt.

At the statement issued by party general secretary Bamdeb Gautam, it has been stated that the ceasefire in the context of talks between the government and the Maoists was a welcome measure and emphasis should be laid on forging understanding to move ahead in the direction of handing over maximum democratic rights to the people as early as possible.

Govt probing how overdraft crossed limit, says Mahat

BY A STAFF REPORTER

Kathmandu, Aug. 14: Finance Minister Dr. Ram Sharan Mahat said the government has made no attempts to hide from the Parliament the information about the overdraft from the Nepal Rastra Bank that reached to Rs 5.57 billion in the mid-July due to the various reasons which were beyond the control of the Finance Ministry.

He also said that the government had formed probe body and already started investigation on how the expenditure went up suddenly after late June of the last fiscal year.

Giving the statement of public importance in the House of Representatives today, Dr. Mahat said that the budget for compensation to voluntary retirements exceeded the allocated amount. Likewise, the regular expenditure went up, as the budget allocated for the primary and secondary teachers was inadequate due to the increase of their salaries, he added.

The government had to resort to overdraft as the estimates of revenue as well as expenditure were not exact, said Dr. Mahat.

Dr. Mahat’s statement came after Bharat Mohan Adhikari, lawmaker from the CPN-UML Monday at the meeting of the Lower House blamed the government of crossing the overdraft limit and demanded for clarity in this regard. Adhikari had also accused that the government concealed this matter to the House.

Dr. Mahat further noted, "The government had to foot Rs 6 billion during mid-June to mid-July for development works as it could not receive the money from different donor agencies and countries including the APL, Japan, DRF and KR."

The development expenditure exceeded the limits as the government has a policy not to reduce the development budget and has to fulfil the shortage amount from its own resources, he clarified.

Dr. Mahat said that the government could not collect the revenue as expected in last fiscal year due to violence, industrial instability, Chakkajam and closures that had adverse impact on the economy of the country.

Dr. Mahat further said that according to the Article 2 (2) of the Act regarding national debt collection -2057, the government, under the mutual settlement of account, could take overdraft up to Rs 1 billion from the Nepal Rastra Bank in the fiscal year 2057/58.

However, despite the efforts of the government to remain within the boundary, the overdraft reached to Rs 5.57 billion by mid-July, he elaborated.

The Bill regarding national debt collection-2058 tabled in the ongoing session too has similar provision on the matter of drawing overdraft.

The Nepal Rastra Bank informs the public about the overdraft only after 15 days. That is why the government alone knew about the overdraft till the first week of June since the budget for the fiscal year 2058/59 was presented on July 9. At that time, the overdraft was only Rs. 2.8 billion.

The cycle of collecting revenue is at its peak in June/July and the Finance Ministry has already circulated the instructions not to release fund after June 29. The government presented budget for the fiscal year 2058/59 thinking that overdraft would not cross the limitation.

Dr. Mahat also expressed the belief that that findings of the report would help control unnecessary expenses in the last month of the coming year.

He also informed Parliament that in view of the high potential that cooperatives have to function as effective financial mediators in the Nepalese context, Nepal Rastra Bank is doing necessary homework towards streamlining the cooperatives in the interest of depositors, according to a RSS report.

Meanwhile, Finance Minister Dr. Mahat has said rehabilitation of ailing industries is one of the important aspects of the budget for the current fiscal year.

Replying to questions from MPs at the National Assembly today, Finance Minister Mahat said various facilities like imposition of only one per cent customs duty on capital goods imports have been provided for the rehabilitation of such industries.

As there is no provisions allowing the export of cows and oxen, the question of levying any tax on such exports from this year does not arise, he said in reply to a question.

Answering another question, Dr Mahat said the government has no plans to stop army patroling at customs points along the southern border.

He replied to questions from CPN-UML’s Kedar Prasad Neupane and Dev Raj Ghimire.