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Labour Wages Fixed The minimum wage for unskilled labour has been revised and now fixed at Rs. 1480. It is Rs. 1500 for semi-skilled labour, Rs. 1610 for skilled labour, Rs. 1800 for highly-skilled labour and Rs. 1144 for minors (14-16 years).The rates earlier were Rs. 1300, Rs. 1350, Rs. 1460, Rs. 1660 and Rs. 1025 respectively for the five categories of labour as fixed in 1997. The minimum wage was fixed in accordance with the Labour Act, 2048 BS, and on recommendation of the committee formed to suggest the minimum wage for employees and labourers working in establishments other than the tea gardens. Meanwhile, the labour ministry is also learnt to have decided that the employers can adjust the increment with the raise they have provided to their workers over and above the previous minimum wage. Together with this the ministry has also decided that the off-days allowed to the workers shall be limited to the number as prescribed in the Labour Act, 2048. In addition to the minimum wages, dearness allowance is also revised and now fixed at Rs. 666 for adults and Rs. 500 for the minors. Previously, the allowance was Rs. 500 and Rs. 375 for the adults and minor respectably. For workers on daily-wage, the new wage has been fixed at Rs. 74 for adult workers and Rs. 60 for minors, as compared to Rs. 63 and Rs. 50 previously. Gorkha Brewery Now Pvt. Ltd. Gorkha Brewery Ltd. (GB) has been converted into a private limited company. According to the company sources, the Company Registrar formalized the conversion with its decision to this effect on April 7, 2000.Brewer of Carlsberg and Tuborg brands, GB is the reigning leader in Nepal’s beer industry with an estimated 50% market share. Its conversion into a private limited company is however not going to make much difference, as it has remained a family-held company right since its inception. GB belongs to Khetan Group, which has interests in various other sectors, such as banking and insurance. The Group is now readying to enter food processing, starting with instant noodles. Lauda Air Flights Lauda Air has started a weekly flight from Vienna (Austria) to Kathmandu.Explore Nepal (P) Ltd, the GSA of this European airlines in Kathmandu, says that the airline will increase to weekly three flights during October-November and March-April, the periods regarded as peak seasons for tourism in Nepal. Lauda Air is established and owned by racing car champion of yesteryears, Nicky Lauda, and belongs to Austrian Airlines Group. Its flight is replacement of Austrian Airlines flights which earlier flew to Kathmandu. Lauda Air is using a 285 - seater Boeing 767-300 aircraft, thus making 20% increase in seat availability compared to the flight of Austrian Airlines. Floor Price for Carpet While the exporters are demanding abolition of the practise of fixing floor price for export items, His Majesty’s Government has revised downward the floor price for carpet exports fixing it at US$ 48 per square meter, f.o.b Nepal border.Earlier, the floor price for the carpets was US$ 68 per square meter. However, carpet exporters are reported to be fetching US$ 40 only per sq.mt. As a result, though they are getting L/C opened for the official price, they have to send the difference back to the importer through grey channel. India's "No" to Kodak Nepal As the first case since it started providing duty-free access in its markets to Nepali products under the Indo-Nepal Trade Treaty, India has informed in writing to the Nepali government that such facility will not be available to photographic papers produced by Kodak Nepal, an Indo-US joint venture.This, after American President Bill Clinton’s recent visit to India where he is learned to have touched upon the Kodak Nepal issue, has left the company with little option. It is viewed that if the upcoming budget fails to come up with some provision for the venture, the company will pack up and leave. India has said that photographic papers produced by Kodak Nepal have not undergone manufacturing activity in Nepal, and so are not eligible for duty-free access offered by the Treaty. On the countrary, Kodak Nepal, together with FNCCI and Nepali authorities, had been insisting that the company is following a manufacturing activity, similar to the standard production process of photographic films and papers carried out elsewhere in the world. Sharda Group - Satyam Tie-up Satyam Infoway Limited of India has collaborated with Sharda Group of Nepal to form Network Technologies Private Limited, with the brand name NetWay. NASDAQ - listed Satyam Infoway Ltd. is the first Internet service provider in India with operations stretching in 42 Indian cities.NetWay is a ready-to-use Internet connection CD product available off-the-shelf like a book. Sources claim that customers reveive facilities like e-mail, free web space, free software to control access to unsuitable website, and multi-media Internet training program. Sharda Group’s business is centred in the industrial and trading sectors. Cyber Networks, which since the last three years has been providing Internet service in Pokhara, is a subsidiary of Sharda Group. CACCI Meeting The Confederation of Asia-Pacific Chamber of Commerce and Industry (CACCI), has called on governments and business sector of the region to cooperate to deal with economic and social problems brought about by globalization.At its 60th Council Meeting held in Kahtmandu, it discussed safety-net measures to enable Asian economies to meet challenges of globalisation and also take advantages of opportunities offered. CACCI has its permanent secretariat in Teipei, and the Kathmandu meeting was hosted by FNCCI. While expressing support for trade and investment liberalization, and that free and open markets provide ideal environment for expansion and integration of world economy, CACCI’s council meeting also noted that globalization had not brought the same degree of prosperity and development to all Asian economies and to all sectors within the economies. Therefore, CACCI also pointed out that liberalization had to be supported by putting in place steps to enhance benefits especially for vulnerable sectors. Urging implementation of measures, CACCI pointed out the need for correction in policies biased against the agricultural sector and policies that encourage domestic cartels and monopolies. The governments were also advised to review policies on those sectors likely to be affected by trade and investment liberalization. Infrastructure spending should be focused on areas likely to produce greatest benefit, especially in terms of encouraging investment in globally competitive sectors, CACCI observed. It also pointed out that policies encouraging private sector participation in physical infrastructure development needed to be framed. Policies facilitating growth of SMEs and their access to finance markets technology and information was another important aspect CACCI advised. CAN Elects WC Computer Association of Nepal (CAN) has elected its fourth working committee.A release from the Association states that while Lochan Lal Amatya has been elected president, Biplav Man Singh, Rajib Subba, Ravi Krishna Shrestha and Chetnath Upadhyay have been chosen vice-president, general secretary, secretary and treasurer respectively. Other members are Atma Ram Ghimire, Allen Bailochan Tuladhar, Gajendra Singh Bohora, Basanta Raj Shrestha, Bimal Kaji Tuladhar and Sunil Pradhan, says the release. The tenure of the committee is two years. Investment Promotion Committee Formed With a view to promote both domestic and foreignprivate investment, a high-level investment promotion directive committee under the chairmanship of Prime Minister Girija Prasad Koirala has been formed. The PM’s office has made known that the Deputy Prime Minister, the Minister for Works and Physical Planning, Water Resources, Finance and Industry, the Vice-Chairman of the National Planning Commission and the Chief Secretary have been designated members of the committee. While the secretary at the PM’s Office is the member secretary, the PM’s Office itself is to act as secretariat for the committee. Harisiddhi Holds AGM After long remaining shrouded in a haze of mystery,Harisiddhi Brick and Tile Factory Ltd. (HBTFL) made public some of the key facts about the condition of the company by holding its first AGM recently. And the result is that its shares have started showing modest improvement in the Nepal Stock Exchange. HBTFL shares of face value Rs. 10 each were traded for Rs. 3.0 per share on May 5. However, after the AGM, they closed higher at Rs. 3.4 and Rs. 3.6 on May 11 and May 15 respectively. HBTFL owns and operates Harisiddhi Brick Factory that was privatized during the first phase of privatization in 1992. Its AGM was delayed due to legation. The company says, after taking over the factory, it has introduced new production lines and technology. The factory was originally set up under Chinese assistance. The improvements claimed include doubling in the production capacity of bricks to 20 million pcs per annum by adding a double dearing plant. Similarly, it has expanded tile production capacity from one million pcs per annum to 2.5 million pcs per annum by adding ‘twin-press tile plant’. As a result, the company has brought out new products (wall tiles, floor tiles etc) into the market. According to the report presented at the AGM, the company has signed joint venture and technology transfer agreement with Welko Industries of Italy with a view to produce and export ceramic tiles. Harisiddhi Bricks & Tiles Financial Highlights Rs. in million
Production Highlights (in thousand pcs)
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