Japan okays aid for infrastructure

Kathmandu, Aug. 17 (RSS): The government of Japan has agreed to extend a grant assistance of Japanese yen 4233.0 million (approximately Rs. 2612 million) to His Majesty’s Government of Nepal.

According to a Finance Ministry press release, two separate exchange of notes to this effect were signed and exchanged between His Majesty’s Government and the government of Japan at the Ministry of Finance today.

Under the first note, the government of Japan will provide a grant assistance of Japanese yen 317.0 million (approximately Rs 2470 milllion) to His Majesty’s Government which will be used to purchase products and services necessary for the construction of roads, bridges, causeways and other related facilities required for the construction of the segment II of Sindhuli Bazar-Khurkot section of Banepa Sindhuli road project.

The segment I of the Sindhuli Bazar-Khurkot section is under construction with the financial and technical assistance of the government of Japan and the segment II will be completed by March 2005.

Under the second note, the government of Japan will provide a grant assistance of Japanese yen 916.0 million (approximately Rs 565 million) to His Majesty’s Government of Nepal for the implementation of the project for improvement of storage facilities of iodised salt.

The grant assistance will be used to construct storage facilities for 13000 metric tonnes of iodised salt in four cities namely, Birgunj, Bhairahawa, Nepalgunj and Dhangadhi. In addition, the assistance will be used to increase transportation capacity for the distribution of iodised salt and also to establish a laboratory for identifying iodine content in the salt. Similarly, necessary equipment will also be installed for adding iodine to the required level.

The project is expected to be completed within one year, according to the Finance Ministry.

The notes were signed by Dr. Bimal Prasad Koirala, secretary at the Ministry of Finance and Ambassador of Japan to Nepal Mr. Mitsuaki Kojima on behalf of His Majesty’s Government and the government of Japan, respectively.

His Majesty’s Government has expressed its sincere appreciation and thanks to the government of Japan for these assistance and also for its continued interest in the development of Nepal.

'Domestic Violence Control Act to curb discrimination'

Lalitpur, Aug. 17 (RSS): Chief Justice Keshav Prasad Upadhyaya inaugurated a consultative seminar on the draft Domestic Violence Control Act-2058 organised under the joint auspices of the Ministry of Women, Children and Social Welfare and the Law Research and Service Centre here today.

The bill on domestic violence control is being introduced with the objective of preventing physical and mental torture undergone by Nepalese women at the hands of their own family members or relatives and to provide them with appropriate protection and redress against domestic violence.

The draft bill on prevention of domestic violence has made provisions under which person victimised by domestic violence can file a complaint with the local authority, the aggrieved party can file a complaint at the court if the local authority does not process the complaint within 15 days, the court has to look into the complaint on a priority basis, the court can order the perpetrator of the offense to provide for the treatment and upkeep of the victimised person if need be, the perpetrator will be required to pay for the treatment of the victimised person and it provides for closed-door hearing into the case, compensation, deadline and punishment etc.

At the programme, Chief Justice Upadhyaya stressed that in a democracy, rules and regulations should be framed and refined according to the social condition and that the legislation on the rights of women should be formulated as per the commitments made on various international conventions and instruments on the elimination of all forms of violence and discrimination against women.

He said as there is a need for a healthy family for social development, laws concerning domestic violence should be framed in such a way that the families will not be disintegrated due to this.

Deputy speaker Chitralekha Yadav said that the concept of fair justice should be translated into practice, laws should be formulated to curb domestic violence against women and a progressive mind-set cultivated so as to discourage such kinds of crimes from the society.

On the occasion, Deputy Speaker Yadav also released a study report on "a study on the legal status of women in Nepal" published by the law study and research centre.

House of Representatives Law, Justice and Parliamentary Affairs Committee Chairman Mahendra Madhukar disclosed that the committee is deliberating on the ways of reforming some of the existing laws which are discriminatory against women and that these would be present in parliament very soon.

Former minister of State Kamala Devi Panta expressed the view that domestic violence was becoming an endemic problem for lack of laws.

Member of the National Human Rights Commission Indira Rana said that this time around the parliament should not deflect the bill on women’s rights from the current parliamentary session.

From the chair, secretary of the judiciary council Kashi Raj Dahal said that the present criminal justice system was oriented more towards the use of punishment than reformatory.

Dr. Arajoo Deuba, speaking on behalf of the non-governmental organisations and the general people, underlined the need for strict follow-up measures from the police and the local authorities to prevent the recurrence of domestic violence once the issue has been settled.

President of the Law Research and Service Centre Murali Prasad Sharma, secretary at the Ministry of Law, Justice and Parliamentary Affairs Udaya Nepali Shrestha, officiating secretary at the Ministry of Women, Children and Social Welfare Krishna Prasad Sharma and under secretary Suman Kumar Acharya and SNV/Nepal director Jan-De-Witte also expressed their views at the programme.

UNCDP-SAARC meet on precursor control begins

BY A STAFF REPORTER

Kathmandu, Aug. 17: A two-day UNCDP-SAARC workshop on Policy Formulation in the Field of Precursor Control in SAARC Region kicked off in Kathmandu this morning.

The workshop, the second activity since the signing of the Memorandum of Understanding between the two organisations in August 1995 with an aim to combat drug trafficking and drug abuse, seeks to assist the SAARC countries to establish effective national precursor control legislation and procedures. This activity will identify critical issues in the area of precursor control and suggest practical measures for collaboration at the different levels: society, state and the region.

Sixteen experts from the SAARC (South Asian Association for Regional Co-operation) countries will hold a comprehensive discussions on misappropriation, diversion and putting to use legitimate precursors and other elements in illicit manufacture of narcotic drugs and psychotropic substances.

"The need for such a workshop has been felt by all of us to strengthen our mechanism for the overall management of precursors, which have both nice and ugly face side by side," Home Minister Khum Bahadaur Khadka said addressing the inaugural ceremony of the workshop. "I believe this regional workshop will build mutual understanding by sharing experiences and expertise in controlling the misuse of precursors and its illegal diversion."

"Trafficking of drugs and its essential chemicals and solvents are not new to any of us," said Khadka. All the countries of the SAARC region are beset with the problem of drug trafficking and drug abuse. Almost all kinds of drugs – natural, semi-synthetic or synthetic – are being used in this area.

"We can be no longer passive bystanders and claim that it does not affect us," Khadka said. "The solution of the problem does not lie within the reach of a single country but with a combined effort and co-operation between the countries. It is, therefore, high time to build regional linkages and strengthen networking mechanism to control the misuse of precursor and its illicit diversion."

Khadka said Nepal had adopted some control measures and mechanism for the import and utilisation of such chemicals within the country to keep them within their wise use. He hoped the workshop would come up with concrete findings for strengthening the capability of the SAARC countries’ and guiding them to move collectively against illicit use of precursors and its diversion.

This workshop will lay the foundation for enhanced co-operation among all the actors and entities active in the field of prevention of drug abuse in South Asia, SAARC Secretary General Nihal Rodrigo said.

In her welcome address, UNCDP Regional Representative Renate Ehmer said any control over precursors, on the one hand, should not hinder legitimate use of these chemicals and must ensure the chemicals are not diverted into illicit channels on the other.

Delivering the vote of thanks, Sri Lankan delegate Y. L. Ratnayake said such meetings would be crucial to fight drug trafficking and drug abuse in the region.

Drug abuse control has been a major concern of SAARC. It adopted a Regional Convention on Narcotic Drugs and Psychotic Substances in 1990 that provides for the implementation of the relevant international legal instruments and programmes for drug abuse control and preventive measures. The Member States mandated the Technical Committee on Drug Trafficking and Drug Abuse with the task of reviewing and implementing its statutory provisions. However, the Council of Ministers in Nuwara Eliya in 1999 decided to replace the Technical Committee on Drug Trafficking by SAARC Co-ordination Group of Drug Law Enforcement Agencies that became operational since 2000. The Co-ordination Group is responsible to address all aspects of drug control, including the precursor diversion.

Interkraft offers Rs. 730 M for BPC shares

BY A STAFF REPORTER

Kathmandu, Aug.17: Interkraft Nepal has been found to have offered Rupees 730 million for the 75 per cent shares of the Butwal Power Company (BPC), officials disclosed after opening the bidder’s financial bid here this morning.

The consortium of a Norwegian Company and 11 Nepalese Companies has offered the bid in mixed currencies – US Dollars and Nepalese Rupees. While the foreign investor will be paying US$ 350,000, the Nepalese side will be paying the rest of the money in Nepalese currencies.

Under its offer disclosed today, Interkraft Nepal will be paying Rupees 116.08 for BPC’s each share that presently has the price tag of Rupees 100 each. The government more than two years ago floated 75 per cent of the BPC shares -- that accounts for 6.2 million shares – for privatisation.

During the same ceremony at the Finance Ministry when Interkraft Nepal’s financial bid was opened, the officialdom returned the financial bid of Chaudhary Group – the other bidder for BPC shares -- whose technical bid was declared disqualified last week. Because of the disqualification, CG’s financial bid was returned unopened.

Both the opening of the Interkraft Nepal’s financial bid and the returning of the CG’s bid were done in the presence of Finance Minister Dr. Ram Sharan Mahat, Minster for Water Resources Bijaya Kumar Gachhadhar, senior bureaucrats of Finance and Water Resources Ministries and representatives of the rival bidders for BPC shares.

Dr. Mahat said that the process of BPC’s privatisation was delayed due to many factors beyond control. "It would have been good if there were competitors in the financial bidding. The government has to bear the loss of this non-existence of competition in this bidding. But we have to accept the fact that one of the parties was disqualified in the technical bidding."

According to the Finance Minister, Interkarft Nepal’s financial bid will now be analysed by a technical committee in his ministry. "By Monday, the decision will most probably be made."

Noted industrialist Padma Jyoti, one of the Nepalese bidders with Interkraft Nepal, thanked the government for having opened the financial bid and hoped that the move will reach a logical ending.

At the end of the ceremony Mahesh Panta, General Manager of CG, said that his company had offered more price (than that of Interkraft Nepal) for the 75 per cent shares of the BPC. "We had offered Rupees 820 million for the shares on condition that we would make 75 per cent cash down payment and the rest of the amount would be paid within 24 months."

He also charged that his company’s technical bid was scrapped off on "flimsy grounds."

The BPC privatization process kicked the dust of controversy earlier this week after there were claims and counterclaims about who was the other bidder apart from Interkraft Nepal for the power company’s shares.

While the CG had claimed that it was there with Independent Power Corporation (IPC) – an American-British joint venture, officials at the Finance Ministry dismissed the claim and asserted that the bid was only with CG’s name.

Meantime, IPC, as reported by The Rising Nepal yesterday, stressed on its participation in the bidding process but said that it had not submitted the necessary documents to substantiate its joint venture with CG (for BPC shares).

It was this loophole, officials said, that was catalyst to establish IPC as a non-bidder in the entire bidding process. According to them, the Terms of Reference of the bidding process required the bidder to have a minimum experience of having produced 30 MW of electricity.

Even as IPC has the experience of having produced 1800 MW power, CG’s bid could not qualify in the technical bidding. Reason: The bid could not establish the joint technical collaboration between CG and IPC and, what’s more, CG did not have its own experience of having produced electricity, officials said.

This is the second bidding process for the BPC shares in the last two years. Last year, the bidding had to be cancelled after IPC, one of the bidders even then, pulled out of the bidding blaming the government of showing favouritism toward Interkraft Nepal.

Before that, both the parties were asked to revise their financial bids – in which Interkraft had earlier quoted Rupees 135 per share (conditional) and Rupees 90 per share (Unconditional) while IPC had offered Rupees 109 per share.

In their revised bids, Interkraft had quoted Rupees 115 per share while IPC chose not to change its earlier price.

Butwal Power Company has the installed capacity of 17.1 MW with two of its power plants – Jhimruk (12 MW) and Aandikhola (5.1MW). It also owns 15 per cent shares of the 60 MW Khimti Hydropower Project.

Cases against Kantipur withdrawn

His Majesty's Government has, meanwhile, withdrawn the cases filed against four persons including editor of the national daily Kantipur Yubaraj Ghimire, Mr Gupta said adding that HMG is determined to maintain good relations with the press and not restrict it. Questions have been raised at home and abroad about the filing of cases against Kantipur publications, he noted.

Stating that the government has also initiated the process of releasing 200 Maoist leaders and workers, who are in judicial custody by first withdrawing the cases against them in a bid to create a congenial atmosphere for talks, Gupta said that there is no conflict of opinion in the Council of Ministers regarding the withdrawal of cases against the Maoists as stated in a newspaper and the decision was taken unanimously.

A talks team on behalf of His Majesty's Government for holding a dialogue with the Maoists will possibly be announced today and the Prime Minister will forward an official invitation for talks either today or tomorrow, he said adding, in connection with the programmes to be launched by sister organisations of the Maoist party from tomorrow, talks are going on with representatives of His Majesty's Government and the government is moving ahead for fulfilling their several demands.

The government has also urged the organisations to postpone their programmes scheduled to begin tomorrow, the spokesperson said.

In reply to a question, Gupta said the land reforms programme announced by the Prime Minister at Parliament yesterday is progressive and it is hard to comprehend why this is being opposed.

Melamchi Project gets Norwegian assistance

Kathmandu, Aug.17 (RSS): The Kingdom of Norway has agreed to extend a grant assistance of NOK 222.3 million (approximately Rs.1364 million) to the Kingdom of Nepal for the implementation of Melamchi Water Supply Project. The grant assistance will be used as cofunding for Melamchi diversion scheme.

Norway has been extending its significant contribution in the designing of the project by funding advisory services, technical service in the planning process including the final design study of the Melamchi diversion scheme component of the project.

Melamchi is a multi-donor assisted priority project of Nepal with a total estimated cost of US $ 464 million. Apart from Kingdom of Norway, Asian Development Bank, Japan Bank for International Co-operation, SIDA, NDF, OPEC Fund and Japan are the other donors involved in the project. According to current financial plan, HMG/N will have to bear 25.4 per cent of the total cost of the project.

HMG/N has already concluded the agreements with Asian Development Bank and Japan Bank for International Development. In this sense, this agreement is third in a row. Draft agreements proposed with NDF and OPEC have already been finalised and conclusion of those agreements will take place in near future. Processes are under way with rest of the donors for their assistance to the project.

The main objectives of the project are to alleviate the chronic water shortage in Kathmandu valley on a sustainable, long-term basis, and to improve the health situation of its inhabitants particularly the poor. The Melamchi Diversion Scheme will bring 170 million litres of water per day from the Melamchi river into the Kathmndu Valley through approximately 26 km tunnel.

An agreement to this effect was signed at ministry of finance, Kathmandu today. Finance Secretary Dr. Bimal Prasad Koirala and Ms. Lngrid Ofstad signed the document on behalf of their respective governments.

His Majesty's Government of Nepal has expressed its sincere appreciation and thanks to the government of the Kingdom of Norway for the assistance and also for its continued interest in the development of Nepal particularly in key priority areas like drinking water, primary education and hydropower.

Govt names Wagle for talks with Maoists
Security of dialogue team assured

Kathmandu, Aug. 17 (RSS): His Majesty's Government has thanked all the sectors concerned for the present favorable situation created in the direction of finding solutions to the country's outstanding problems through talks and discussions by putting an end to the activities currently taking place in the country.

According to a press release published by His Majesty's Government today, with the objective of building a more reliable ground for the talks between the government and the Maoists those who were put behind bars under different charges have been released. Recently the process of granting general amnesty to persons detained in jails and withdrawing their cases has already been initiated, it is stated.

Stating that Minister Chiranjivi Wagle has been designated on behalf of His Majesty's Government to hold talks with the Maoists, the press release noted that Prime Minister Sher Bahadur Deuba has decided to send an official invitation to the Maoist side to sit for talks within the next 10 days.

His Majesty's Government through the press release has announced that it will be the responsibility of His Majesty's Government to ensure full security of those who sit for the talks on behalf of the Maoist party.

Noting that His Majesty's Government is commited to the idea of not divulging information about the venue of talks, the subject of talks and about the views and opinions that come up during the talks until a final settlement is reached, the government has drawn the attention of the Maoists also to the need of them becoming fully committed to these matters.

The government has also urged the Maoists not to express anything that can be adverse to the dignified institution of monarchy and to stop processions, demonstrations and actions in other forms aimed at creating pressures so that the environment for talks will not be disturbed.

His Majesty's Government has been demonstrating patience and liberalism for the sake of unity, peace and order, and will on its part exercise utmost patience and perseverance for resolution of the problem, the release said adding, the government's efforts, its liberal attitude and patience should not be understood as otherwise or as its weakeness.

UML-Ml reunification efforts make inroads

BY A STAFF REPORTER

Kathmandu, August 17: The Communist Party of Nepal (Unified Marxist-Leninist) and Comunists Party of Nepal Marxist-Leninist’s (M-L) inched a step closer towards reunification as both parties started formal discussion and agreed to discuss their unification attempts in an agenda-wise basis.

Today’s meeting which sat at the UML’s Central Office at Balkhu and led by UML’s Bharat Mohan Adhikari and M-L’s Siddhi Lal Singh held the dialogues aimed at merging two parties into one in an open and cordial atmosphere.

Adhikari and Singh, respectively the coordinators from UML and M-L’s dialogue committees are leading three member teams from each party that broke away three and half years ago. A group of then UML leaders split away from the mother party to form CPN (M-L).

The other members of the dialogue committee are: Amrit Bohara and Keshab Badal of UML and Ashok Rai and Trilochan Dhakal of M-L. All of these members took part in today’s meeting.

Both committees held "positive dialogues" towards the unification of both parties. Both parties will hold their next meeting at the M-L's Central party Office on Friday at 3 PM.

"The achievement of today’s meeting is the agreement to hold the dialogues in the agenda wise basis towards unifying the parties," Adhikari said after emerging from the two-hour long meeting. " We are very hopeful of unification after today’s meeting."

Our bid was also responded positively by M-L in today’s meeting, he added. " However we can not say that how many of such meetings will we need to unify our parties," Adhikari said.

The coordinator of M-L Siddhi Lal Singh too said that the today’s meeting was held in a very open and cordial environment and it had agreed to sit again to discuss the unification bid in an agenda wise basis.

'Nepalese export not to harm Indian industry'

Former Commerce Secretary Mohan Dev Pant, who had signed the Nepal -India Trade Treaty 1996 on behalf of Nepal, thinks the Treaty is a gesture of India's good-will towards Nepal's industrial development. Pant, who was involved in the inception as well as the implementation of the treaty before retiring five months ago, thinks the Treaty should get renewed automatically as per its provision. However, he opines Nepal should also take into account India's concern after India has proposed the revision of some provisions of the treaty. Now Director of Centre for Public Policy Research and Dialogue, he talked to Sunil K.C. of The Rising Nepal about the details of the treaty as well as the issues that have surfaced with India seeking a review of the treaty. Excerpts:

India is seeking some revisions in Nepal-India Trade Treaty between the two countries and Nepal wants it to continue as it is. Why?

The Treaty has a provision, which clearly states that it will have automatic renewal every five years unless either of the party, which has signed the treaty, gives notice for its termination. So it has a provision for automatic renewal, because Nepal wants certainty in industrial investment and continuity in the development of its trade, which in the long run will be beneficial for the economic uplift of the country.

But why has India proposed for revisions in some of the provisions of the treaty?

As it is understood from the press, India wants to change the treaty because it feels that Nepal's exports to India have risen quite substantially in the recent years and it has hurt the Indian industries. That is the reason behind India seeking to change the treaty and they have also discussed in the inter-governmental committee meeting that there has been a surge of export of certain products from Nepal and they want to have either quantitative restrictions or they want to put the items under the MFN (Most Favoured Nation) treatment that means to levy full customs duty on the export which is not acceptable to Nepal because this would put a complete brake on the export of those items.

As you said and as it appeared in the press also there has been a substantial growth in the export of certain items, But as India is such a huge market, has it really affected the Indian industries as claimed by India?

As you see that export of five products as they have mentioned, it is not even 1 per cent of the total consumption in India. So, it should not harm the Indian industries in any way because it is such a huge market and the export from the Nepalese industries is so little. So, it is very surprising and also unbelievable that the Indian industries have been affected. This should not be true.

Then, what could be the real motive behind India wanting to impose quantitative restriction on Nepalese exports?

What they have been saying is that there has been no value addition on the Nepalese products and the products that have been imported by India do not really qualify for manufacturing activities (in Nepal) so it has affected Indian industries. And also the government imposed a minimum of 20 per cent value addition on all the exports. That has been followed. May be some industries in some states of India might have been affected but it is a treaty with the Government of India thus it should be looked at from India's total industrial perspective. So, they should not ask for the revision of the treaty just because a state has been affected or one industry has been affected. Because the treaty does not say that a certain industry would be looked into while dealing with the treaty. The treaty, as a matter of fact, deals with the Indian industries in their wholeness. When this treaty was signed it aimed at facilitating Nepalese export to India because there was a huge trade deficit in India's favour and India had wanted Nepal to improve its export to India. Nepal has also strictly followed the controlling mechanism and has ensured about the real manufacturing process and its products while exporting to India.

How will Nepalese export to India be affected if the treaty is revised according to the demands made by India?

First of all, there will be restriction on Nepalese export to India if we agree with their demands. So, that will affect the growth of industry in Nepal although I don't know how much restriction the Indian side wants to put on Nepalese exports.

In the last five years since this treaty was signed, has the trade gap between Nepal and India narrowed down?

If you look at the figures before and after the signing of the treaty, the growth of Nepalese export to India has been very good. Similarly, India's export to Nepal has also grown substantially. So, the trade deficit for Nepal has remained more or less the same, only the volume of trade has increased. And as a result what has happened, India's export to Nepal before the signing of the trade treaty covered only about 28 per cent of the total import of Nepal, Now the scenario is different. It now covers 42 per cent of Nepal's total import. We see that almost 50 per cent of Nepal's import is from India. So, India has enlarged its market in Nepal.

Now India has said that it wants some revision in the treaty, how should Nepal deal with the situation to convince that the export of Nepalese items has not hurt the Indian industry?

We should look in a considerate way. We should also examine the concerns of the government of India. Because Nepal has always been positive to India's concerns. In the past when the Indian government showed concerns regarding imports from Nepal, quantitative restrictions were put on Nepal's export to India. When it also showed concerns on the certificate of origin from Kodak, the Nepalese government did not issue such certificate to Kodak. Similarly, when India showed concerns on copper wire saying it does not qualify for the manufactured process, Nepal went for three stages of manufacturing of copper wire. So, Nepal has always looked into the problems of the government of India and has addressed its concerns. So, I don't know why the government of India has suddenly come up with the proposal of the revision of the treaty. It seems that the Indian government wants to revise the facilities mentioned in the trade treaty that was signed in 1996 so that Nepalese export and industry cannot grow in such a way that it would benefit Nepal.

Do you see any possibility of the existing treaty being renewed as it is in December, or there would be some revisions as wanted by the Indian government?

The trade treaty, unless terminated, has a provision of automatic renewal. So, there will be an automatic renewal. If the government of India wants to terminate it the scene will be a different one. That would create trade crisis and economic crisis in the trade between Nepal and India. I think the government of India does not want that kind of situation to come up by its action. What I gather from outside sources is that the Indian side has shown concerns on three areas. One is the surge of Nepalese export. The other is value addition that is the rules of origin, and the third is the definition of manufacturing and what the Nepalese government has done previously. In December of 1999, in the inter-governmental committee meeting, they sought explanation on manufacturing, and His Majesty's Government proposed two explanations. Nepal has already agreed to the first explanation. They wanted to have a change in the 4-digit harmonized system code. And that means once you have a product in the manufacturing process, the result would be the output for the input for the end product. That should be the minimum requirement to qualify as manufacturing. His Majesty's Government has already agreed to this and also has sent its conformation to the government of India. The government of India has even thanked the Nepalese government and they also wanted the second explanation to be agreed by the government of Nepal. The second explanation was, what does it qualify as a manufacturing. This was slicing, cutting, assembling and all those things were there. That time the government of Nepal was examining those things. The Nepalese government should now examine on those conditions and if they hamper Nepalese industries should deal with its properly. So, we can meet the first concern of the Indian government.

Secondly, they have asked for value addition. Nepal has automatically imposed 20 per cent value addition on all the products. The CII and FNCCI have jointly worked on this and they have agreed on 30 per cent value addition on these five products. So, if the industries agree on this 30 per cent value addition the government should not have any objection to agree to that. Because the more the value addition, the more the country benefits and the more work the country will generate inside. That also we can confirm from the Nepalese side.

And thirdly, which is the export surge, both the countries should examine it, and they agree that there has indeed been an export surge, We could put certain quantitative restrictions on their annual growth mechanism. That could be a remedy for the long-term continuation of the treaty. There would not be excessive export and also there would be a certain percentage of growth for the industries. That way we can address the concerns of the government of India.

With the concerns shown by India at present, do you think Nepal may face problems to export its other products to India in the future?

At the moment, they have not cited any such problem. What we have to work out is, more value added products should be exported to India. That will bring growth to Nepal and Nepal will be industrialized.

What could be those products?

They could be forest and agro-based products, handicrafts, textiles. These are the products that have to be exported to India. So, we should grow more industries on those areas where we have the strength of having raw materials inside the country as well as on the third country's components we should see that there is more than 25 or 30 per cent value addition on these products. So, that India also does not have any problems while our products get into the Indian market.

Looking at the present problems, there have been accusations that with the kind of fiddling with the treaty, India does not want Nepal to grow economically. Do you think that is true?

I don't believe that is true. When the trade treaty was signed there was a clear consensus between both the governments that India has always wanted Nepal to grow. And on that vision, India has given facilities of duty free access of Nepalese goods into Indian market. And the material content requirement has been deleted and only manufacturing process is required for the export of manufactured goods. So, this is a good-will gesture from the government of India. So, I don't believe India does not want Nepal to grow economically. That feeling is not true. But we should also look into the concerns of the government of India without hampering our industries. That way we should try to convince the government of India.

What has been the attitude of the previous governments of both Nepal and India on this treaty?

What I would like to explain is that when we signed this treaty of trade in 1996, both the governments had a vision and that this was a culmination of the recommendations of both CII and FNCCI. Both the parties had worked together and had suggested these provisions for the industrialization of the country. That time P.V. Narasimha Rao of Congress (I) was the Prime Minister of India. He had asked the commerce secretaries of both the countries to examine the recommendations. This was submitted during the visit of Sher Bahadur Deuba, who also was the Prime Minister of Nepal that time. Both the Prime Ministers had agreed to the provisions. This treaty was signed when Deva Gauda of the Janata Dal was the Prime Minister of India. And the implementation aspect of the treaty was also discussed during the visit of former Prime Minister Girija Prasad Koirala to India. All the successive governments of both India and Nepal have shown satisfaction on the implementation of this treaty. So, I don't think this treaty has hampered any industry in India. So, this treaty should be implemented without any change as far as possible. This treaty has even had a very good impression in the international arena. And as land-locked country, Nepal has been receiving benefit from the treaty. If there is any problem at the implementation level then both the governments should sit together and address the concerns of India. India has always shown good concerns for Nepal's problems. So, this time also, I hope, India will do the same. If the treaty is revised or if India wants to terminate the treaty, there will be an impression on the Nepalese that India wants to take back the facilities it has been giving to Nepal.

When the treaty was signed, had you foreseen that this sort of problem would crop up?

We had not visualized or foreseen this kind of situation. But earlier, when the treaty was to be renewed or when there was time for a new treaty there always used to be problems. We wanted to avoid that because that created uncertainty for investment in Nepal. At the time of signing of this treaty it was acclaimed as a land-mark treaty by both the governments and also as India's good-will for industrial growth in Nepal. It was also envisaged by both the government that it would go for a long time - at least 15 or 20 years - and if there should be any problem on the implementation level both the government should sit down and take corrective measures. It was thought at that time that only after 15 or 20 years, there would be a need for revision of the treaty.

Indian foreign minister arrives on goodwill visit

BY A STAFF REPORTER

Kathmandu, Aug. 17: Indian Minister for External Affairs and Defence Jaswant Singh arrives here this evening for a three-day goodwill visit. Upon arrival by aspecial flight from the Indian capital city of New Delhi, Minister Singh was warmly received by Nepalese Minister for Agriculture and Cooperatives Mahesh Acharya at the VVIP bay of the Tribhuvan International Airport.

"Calling his ongoing visit as a visit also as an ambassador for maintaining goodwill and lasting friendly relations between the two neighbouring countries", Minister Singh said that he would certainly discuss strengthening and deepening India-Nepal relations along with the issues of mutual interest.

Talking briefly with press, Minister Singh said, "I will address myself to such issues as need to be addressed and clarified on matters of bilateral interest."

Furnishing replies to the queries of the journalists at the TIA on the recently held secrertary level meeting on Trade Treaty and the construction of barrage by India near Lumbini, the birth place of Lord Buddha, Singh said that he would certainly hold discussions with the Nepalese authorites and know the fact.

"Yes, I have learnt about the recent issue over Russiyal-Khurdlotan bund built at western Nepal and I am also here to talk on that issue," Minister Singh said.

During his three-day long goodwill visit, Minister Singh will be meeting with Prime Minister Sher Bahadur Deuba, ministers, and leaders of the political parties to discuss on issues of mutual concern.

His Majesty the King is also expected to grant an audience to the visiting Indian Minister Singh.

This is the first time that a high-level Indian authority is visiting Nepal after the enthronement of His Majesty King Gyanendra Bir Bikram Shah Dev and the swearing in of a new Prime Miniter in the country.

The visit of the Indian Foreign Minister is regarded as significant when the issues of revision of some provisions in the trade treaty and India's construction of the Russiyal-Khurdlotan barrage have cropped up between the two countries.

Meanwhile, according to officials at the Ministry of Foreign Affairs, foreign secretary of Qatar is scheduled to visit the Himalayan Kingdom next week. The foreign secretary will be having dialogue with the Nepalese counterpart for developing consultative mechanism and an agreement is also expected to be signed during his goodwill visit.

Meet on sexual harassment in workplace begins

BY A STAFF REPORTER

The first national workshop in Nepal on Sexual Harassment at the Workplace, organized by the International Labour Organisation, commenced today in Kathmandu. The workshop brought together government, employers, trade unions and civil society to discuss the scope and extent of sexual harassment at the workplace in Nepal and deliberate upon strategies and mechanisms to tackle this issue.

Vice-Chaairman of the National Planning Commmission Prithvi Raj Ligal, stressed the government's commitment in developing apropriate laws, institutions and mechanisms to promote gender equality as a top national priority. He said that the workshop results would lead to designing effective policies and concrete actions for addressing sexual harassment. Lauding ILO for taking the initiative, he said, Deliberations at the workshop would feed into the Tenth Five Year Plan.

According to an ILO press release, Ms. Leyla Tegmo-Reddy, Director, ILO Office in Kathmandu, welcoming the participant emphasised that sexual harassment is an attack on person'sprivacyand dignity and a violation the fundamental rights of workers. She noted that sexual harassment is a manifestation of power relations in which women are most often the victims. The consequences of sexual harassment for the victim can be devastating She said.

Ms. Tegmo-Reidy also congratulated the Prime Minister Sher Bahadur Deuba, for announcing the establishment of the National Commission for Woemen, noting this institution should take up the issue of sexual harassment with vigour.

Dr. Mohan Man Sainju as chauperson noted that the climate in the country today was most appropriate for taking up the issue of sexual harassment at the workplace, because the whole ecomomy was depending a vigourous participation of women. Saying sexual harassment could lead to their hesitation to enter thelabour market, he urged the workshop not to forget the root causes of sexual harassment and encouraged the participants to probe into mechinisms leading to the prevention of this ill.

Dr. Jyoti Tuladhar, Senior Specialist on Gender Issues, ILO South Asia Multidiscipinary Advisory Team, provided an overview of the international perspective on sexual harassment at the workplace, defining it as unwelcome, unwanted and sexually oriented behaviour towards colleagues linked to a person's employment or promotion prospects or creating an unpleasant intimidating, hostile or humiliating working environment.

Other who also spoke at the workshop included representative of the Ministry of Law and Justice, Ministry of Labour, Nepal Trade Union Congress and others.