Nepal-India sign agreement

By A Staff Reporter

KATHMANDU, Feb 15: An agreement was signed Friday between the Ministry of Local Development of His Majesty's Government and Embassy of India regarding Indian assistance of 7.34 million Nepalese rupees for the implementation of the Deuri Water Supply Project to provide drinking water to about 1500 households in Triyuga Municipality in Udayapur.

The proposal for this project was prepared and submitted by the District Development Committee of Udayapur.

The estimated cost of the project is 9.72 million Nepali rupees, out of which 2.38 million Nepali rupees will be generated through local contribution, to meet the cost of land acquisition and earthwork and excavation.

The remaining cost of the project, i.e. 7.34 million Nepali rupees, will be provided as grant-in-aid by the Government of India to the District Development Committee,Udayapur, according to a press release issued by the Embassy of India.

The Ministry of Local Development signed the agreement on behalf of the District Development Committee, Udayapur.

The DDC will follow its prescribed procedures for tendering and awarding the contract for the project, and will ensure quality construction through constant monitoring and supervision of implementation by the District Infrastructure Development Office.

Moreover, a Users' Committee consisting of eleven local citizens has been constituted in accordance with the provisions of the Local Self Governance Act, 2055, which will be responsible for mobilising people's participation for effective implementation of the project, and also for overseeing the execution of the work, including the process of award of contract and recommending release of funds based on satisfactory progress.

It is expected that the Deuri Drinking Water Project will have a direct beneficial impact on the lives of people residing in wards 8, 9, 10 and 11 of the Triyuga Municipality, as well as four villages, namely, Bagaha, Shreepur, Deuro and Jaljale in Udayapur district.

Bubbling index down again
Insurance sector surpasses commercial banks

By A Staff Reporter

KATHMANDU, Feb 15: The growing optimism over the bubbling stock market witnessed a setback following the decline in the index of Nepal stock Exchange (NEPSE) by almost 4 points last week (Feb 10-14). Anxious stockbrokers believe that the uncertainty of political development is the reason behind the rickety situation of stock market.

However, they say, " The NEPSE index would move up as soon as the government and the Nepal Communist Party - Maoists thrash out solutions for permanent peace. "But the situation is still unpredictable," says Anoop Raj Shrestha, a financial market analyst. Nobody can say whether the stock market would go up or come down, he adds.

The already beleaguered Nepalese stock market had started gaining ground unexpectedly following the ceasefire on January 29. The stock market recovered by almost 7.5 point until February 9.
According to stock market analysts the bullish trend that appeared in the market was mainly due to ceasefire. 'There was no economic reason behind the upsurge of NEPSE index.

Navraj Pokhrel, a stock market analyst and a former president of the Nepal Stockbrokers Association said that stock market could gain its ground if the problem of peace and security is permanently resolved. The index would go up, Pokhrel said confidently.

The market had already reached to its bottom line, so we were waiting for its revival, he added. "But there is no economic reason behind the upsurge of index," he asserted.

Stockbrokers said that the announcement of ceasefire was not only the cause of rise and fall in the NEPSE index. There were other reasons such as - annual general meeting and maneuvering- ie cartel could be possible factors for the rise the NEPSE index. On the other hand, the Nepalese stock market, they say- is not hyper-sensitive. Ceasefire announcement could have contributed, but it was not the sole factor, they asserted.

Regarding the sudden rise in the transaction of share beloinging to the insurance sector, they said, "This could be because of the possibility of the Gulf War. If war happens, the insurance is the only business that will flourish."

"But its pattern of transaction for at least 2-3 weeks have to be seen," they said.

It is said that the index would continue to go up unless any other factors (economic or non economic) intervenes the market.

Last week economists were skeptic about the sudden rise in the NEPSE index saying, "It would not last for long time." Because no visible change had been witnessed in the money market and the bullion market as well.

The price of gold was on rise with no sign of immediate decline. There should have been some impact in the money market for the visible change in the NEPSE index, the say.

According to Nepal Stock Exchange (NEPSE), the index which had drop off to 198 three weeks before, came to 217.14 on February 9. A total of 68689 shares amounting to Rs 115,33,951/- were traded through 3070 transactions, whereas 80444 shares amounting to Rs 272,76,992/- were traded through 1787 transactions two weeks before. Ingroup-wise transaction, index of commercial banks had declined to 206.30 from 213. Similarly the index of manufacturing sector remained to 253.96. The index of hotel sector went up to 200.15 from 194.77. The index of other sector remained to 61.19
Similarly the index of trade sector remained at 92.85. The index of insurance sector had witnessed a slight. Similarly the index of development bank declined to 265.89from 266.28.

Out of total transaction the banking sector had registered 29.21 per cent, manufacturing sector registered 0.18 per cent. Hotel sector 1.05 per cent, other sector 0.02 per cent, insurance sector registered 43.27 per cent, finance sector registered 15.53 per cent and developing banking sector registered 10.73 per cent.

In terms of the number of transaction, volume of transaction and the amount of transaction, Nepal Life Insurance Company Ltd. registered the highest transaction throughout the week. A total of 33,130 shares amounting to Rs 42,46810 were traded through 2058 transactions.

The NEPSE trading floor remained open for five days. Among the companies that registered transaction for five days were Nepal Bangladesh Bank (Rs 390-405), Everest Bank (Rs 430-410), Bank of Kathmandu (Rs 246-244), Nepal Life Insurance Co. (Rs 129-127), Nepal Merchant Bank and Finance Ltd (Rs 200-195 United Finance (Rs 134-133), Nepal Development Bank (Rs 150) and Development and Credit Bank (Rs 165-164). Among the companies having transaction for four days were Himalayan Bank (Rs 822-820) Oriental Hotels (Rs 55) and Lumbini Finance and Leasing Com (Rs 150).

Nepal Bank Ltd. Himalayan General Insurance Company and HISEF Finance Ltd. had registered transaction for only day.

Out of 53 companies only 36 companies registered their transaction last week Feb 3-7).

Govt urged to take steps to increase quotas

By A Staff Reporter

KATHMANDU, Feb.15: Nepalese garment entrepreneurs said that the government should take measures to increase quota and duty free access to America and Canada to promote exports of Nepalese garment products and other exportable items.

A high-level team of team of government officials and entrepreneurs had visited USA and Canada. At a press briefing on Friday Kiran Prasad Sakha, President of GAN, said the team, consisting of government officials and garment entrepreneurs, held discussions with officials, importers and members of the parliament and held discussions with officials and importers there.

As the government has already declared 2003 as the Export Year, it should try to lobby to enhance our exports to the American markets, Sakha said.

Purushotam Ojha, joint secretary at the Ministry of Industry Commerce and Supplies, who had led the Nepalese delegation, said that the tour was made to reverse the trend of decreasing exports of Nepalese garment products to the American market although the facility of duty free provision and quota system is still in force.

Bhanu Prasad Acharya, Secretary at the Ministry of Finance, said that while the government was ready to facilitate them at the diplomatic level, it is the private sector that should be active and play a leading role. Lava Kumar Devkota, Secretary at the Ministry of Industry, Commerce and Supplies, said that as increase of garment export would help boost the national economy it should be a common agenda for discussion. Madhu Raman Acharya, Secretary of the Ministry of Foreign Affairs, said that the government would support the private sector in promoting exports to America in all possible ways.

Industrialist fined

By Our Correspondent

JALESHWAR: Domestic and Cottage Industry Office (DCIO), Mahottari fined an industrialist Rs. 15,000 for operating an industry without permission from the concerned authority. Shesh Javir of Parsa Dewad - 6 was running a rice mill using a saw mill machine.

According to the DCIO, he was fined after a case was registered against him. This is, perhaps, the first such case in the district.

Despite the provision for a fine of a maximum of Rs. 500,000, as per the Industrial Business Act 2049, he was given the minimum fine because it was the first case of its kind, and the industrialist was illiterate and ignorant, said the DCIO.

PM programme introduced

RSS

PANAUTI: District Agriculture Development Office, Kavre has introduced the integrated pest management programme in the district.

The programme has been run in 12 different VDCs of the district in an intensive manner by the agriculture department division of crop preservation with assistance of FAO, the agriculture office has said.

The programme demands practical skills on the part of farmers on various matters like soil management, seeds and mixed-crops system, irrigation, weeding, fertilizers, micro-elements management, crop preservation and after-production activities, said the office chief Khem Sharma Paudel.

The knowledge and skills obtained by the local farmers in the ipa training conducted by paddy farmers' school will be applied to the cultivation of other crops too after proper follow-up and analysis, he said.

Two vegetable farmer schools and 15 IPM farmer schools have been run in the district by sipred, a local NGO.

Ginger price goes up

RSS

PALPA: The market price of ginger in this region has jumped by 50 percent following the setting up of a quarantine check post at Sunauli.

Ginger growers in Palpa, for whom ginger is the main cash crop, are to take up ginger cultivation on a more commercial scale following the setting up of the quarantine check post.

According to Dolakh Karki, head of the ginger purchase and sales depot set up at Batase by the Rural Economic Development Association , ginger which used to sell for Rs l7 to 20 30 per kg has started fetching Rs 30.

The Rural Economic Development Association has made arrangements for purchasing and selling ginger from Gulmi and Syangja districts also through the depot in Palpa, according to convenor of the association Lila Karki.

Khem Bahadur Khandulka, head of the depot at Dhunganabesi in east Palpa, says that last year the depot exported 200 tons of ginger and the figure for this year will be double that.

Kashiram Khanal Of Bhairavsthan VDC,, who cultivated 22 quintals of ginger last year says that the cultivation this year will double.

The ginger output in Palpa this year has been 25 percent greater than last year.

When the Indian government refused to deal with the quarantine check post at Sunauli, agro-products worth hundreds of thousands of rupees had gone to waste in Nepal and the price of ginger plummeted by 30 to 40 percent.

The export of 25 other kinds of produce had also come to a halt.