Biznews

In a surprise move, the state monopoly Nepal Oil Corporation (NOC) reduced the prices of some petroleum products on May 8, the second time within a month. Earlier, the prices were reduced on April 20 in response to strong opposition from student

Petroleum Prices
	Before May 8	After May 8
Kerosene	Rs. 27/ltr. (Open market)	Rs. 24/ltr. (Open market)
	Rs. 20/ltr. (on ration card)	Rs. 20/ltr (on ration card)
Diesel	Rs. 33.50/ltr.	Rs. 31/ltr.
Petrol	Rs. 56/ltr.	Rs. 52/ltr.
LP Gas	Rs. 700/14kg.	Rs. 700/14kg.

Coincidently, the latest price reduction came on the day when the political parties staged the first-day protest rallies under, what is also called as, Janaandolan-II or the second People’s Movement. Janaandolan-I was the one that restored multi-party democracy in 1990.

However, the authorities have said that this latest revision is effected under the recommendation of the high level committee set up in late April to monitor and fix the petroleum price. Though this price reduction was expected to result in subsequent
downward revision in the transport cost as well, the reductions announced so far by transporters have been insignificant.

As the businessmen concerned say, such industries as steel mills that consume a lot of furnace oil, will not benefit much from the latest price revision as the price of furnaces oil is left unrevised. Same is the case in airlines as the price of aviation fuel is left untouched.

The Department of drug Administration has now lifted off the ban it had imposed on Dharan-based Manoj Pharmaceuticals (P.) Ltd. early February.

However, the company is now allowed to manufacture only 20 out of the over 100 types of drugs it was allowed in the past. The firm is also required to employ one qualified Pharmacist as the in-charge of each of its production units.

In response to a strong request from the Nepali side, Indian government has announced that the concession on Indian internal duty provided on goods exported to Nepal from India against the payment of US dollars, shall be available also on exports through Jogbani and Sunouli check-points.

Earlier, this facility under what is known as Duty Exemption Pass Book (DEPB) scheme was available only on exports through the Raxaul check-point. Under this scheme, the Indian exporter is allowed 3% concession on the Indian internal duty thus making the product cheaper.

Nepal has listed 33 items, mostly industrial raw material and auxiliary raw material, that can be imported from India against the payment of US dollars. The Nepali entrepreneurs, especially of the mid-western and far-western regions, have been demanding that this facility should be extended also to the goods when imported through Rupaidiha check-point.

Lotus Opportunities (LO), an organisation formerly known as Lotus Holdings (P) Ltd., has announced formation of three new business support companies to consult and provide guidance to new and emerging enterprises.

The three companies include Lotus Bizport, Lotus Intellect and Nepal Lotus Business Incubation Centre.

According to LO sources, while the BizPort will provide supports in problems and issues that commonly occur in business. Lotus Intellect will mainly focus on providing trainings and organising seminars. It will also provide free tax and VAT counseling to micro, small and medium enterprises beginning late April 2003.

Established in 1998, Lotus Holdings claims to be pursuing a mission of promoting socially responsible entrepreneurs and provides such services
as investment materialisation, asset management and match making between ‘investee’ and ‘investor’.

The Business Incubation Centre is promised to be a knowledge, skill and resource based centre from where an entrepreneur acquires necessary information and support for establishing an enterprise.

According to LO, it is going to tie up with Laxmi Bank to help micro, small and medium enterprises. There also will be a Business Clinic set up to provide free consulting advice on a company’s practices, say so sources.

After Her Majesty the Queen inaugurated the website www.shripashupatinath.org on May 19, offering Puja and prayer to Lord Pashupatinath temple in Kathmandu has become a click-of-the-mouse away for the devotees throughout the world will get the prasad by courier service against a payment made online or through bank.

To get the Puja performed, a devotee has to fill up a form on-line paying the specified fee. Accordingly, he can choose between forms of Puja the cost of which ranges from Nepali Rs. 1,500 to 2,500 for the Nepalis, Indian Rs. 1,500 to Rs. 2,500 for the Indians and US $ 50 to $ 100 for people residing anywhere else. The money can be paid through credit card, money transfer or bank draft. ICICI Bank of India is appointed for this purpose.

The certification of the Puja along with the prasad will be sent to the devotee by Pashupati Area Development Trust.

After the website was inaugurated, a special seminar was held to develop packages for religious tourism in Nepal focusing specifically on Hindus and Lord Pashupatinath. The seminar was attended by media and travel trade representatives mainly from India, which in home for nearly one billion Hindu population beside being the largest tourist originating market for Nepal.

Jagatguru Shankaracharya of Kanchi Kamakoti Peetham, one of the five supreme holy men of Hindu religion entrusted with the responsibility of preserving the spiritual order of Lord Shiva (Pashupatinath being one of His many manifestations) and Hinduism is reported to have agreed to go for a promotional tour at a number of places of India encouraging people to go for a pilgrimage of Pashupatinath temple.

Development Credit Bank Ltd. (DCBL) has become the first banking sector company of Nepal to receive ISO.

According to the bank, it has received ISO 9001:2000 from Norwegian certification agency Det Norkse Veritas (DNV).

Sudhir Babu Khatri, the president of DCBL, says his bank went for ISO to distinguish itself from the other banks particularly in terms of customer satisfaction.

“Now our bank has become system dependent rather than personality-dependent”, he told Nubiz explaining what difference the ISO certification has brought about in the bank so as to excel in customer satisfaction.

* Laxmi Bank Ltd. has honored Hajuri Bista as the “woman entrepreneur of the year”. Bista produces various pickles and candies under the brand Navaras.

* Hyatt Regency, Kathmandu has been awarded the “International Quality Award for Excellence and Business Prestige” in the gold category for 2003, by Business Initiative Direction (BID), according to Taragaon Regency Hotels Ltd., the owner of the 210 rooms deluxe hotel. The award will be presented in New York on 14th July, says the company.

* Raybot Spring’s Mineral Water (P.) Ltd. has received International Quality Award 2002 in Italy. Raybot produces mineral water branded Thirst-Pi.

* Mt. Everest Brewery (P) Ltd. has launched a limited edition of its Everest Premium Lager Beer to mark the golden jubilee of the first human ascent on Mt. Everest, the highest peak on earth. The bottles of the limited edition beer feature the photo of Edmund Hillary and Tenzing Norgay, the first summiteers of the Everest, atop the highest peak.

Soon after some grim predictions for the growth in Nepal’s GDP made by two international development agencies, the official statistical body of Nepal has released its own figures showing a much more
optimistic picture.

According to the Central Bureau of Statistics (CBS), a Nepali government agency reporting to National Planning Commission, the country’s nominal Gross Domestic Product (GDP) at producers’ prices is expected to record a 2.30% rise in the current fiscal (year that ends on mid-July 2003) over the revised GDP estimate for the previous fiscal year.

This is far more optimistic than the 1.5% growth predicted in April by Bangkok-based UN agency Economic and Social Commission for Asia and Pacific (ESCAP) and Manila-based international lending agency Asian Development Bank (ADB).

However, the CBS forecast of 2.3% GDP growth for the current fiscal year is lower than the 2.5% growth forecast by the Ministry of Finance early 2003 and much lower than the 4.3% that the Ministry had predicted in July 2003 while announcing the national budget for 2002-03.

Meanwhile, CBS has also revised the GDP growth estimation for the last fiscal year (ending mid-July 2002) to a negative 0.47% as compared to negative 0.63% estimated earlier.

CBS has also predicted that by the end of the current fiscal year in general level of prices will be 3.48% which is expected to be higher (3.75%) in agricultural products and lower (3.31%) in non-agricultural products.

During the first nine months of current fiscal year starting mid-July 2002, Nepal received a substantial 36% increase in the inflow of Foreign Direct Investment (FDI) as compared to the same period last year, according to data issued by Department of Industry.

Though the number of new projects with FDI has been lower (48) this year in comparison with the last year’s (57), the data show the FDI inflow amount this year to be Rs. 1.41 billion as compared to Rs. 1.05 billion received in the same period last year.

The total project cost in the units receiving the FDI in that period covers Rs. 4.35 billion out of which the fixed investment is Rs. 3.18 billion.

In a step to implement the suggestion of Dr. Shanker Sharma committee made last year, the ailing national flag carrier RNAC has called for bids to rent out its office building. Located at the capital's major business centre New Road Gate, the five storey building with 13,840 sq.ft. space in each floor, can be sub-leased, says the corporation in a notice issued inviting the bids.

After reviewing the report of another high level committee headed by former Chief Secretary Damodar Gautam, Dr. Sharma Committee had about nine months ago recommended the corporation to rent out the New Road Gate property and shift its headquarters to Sinamangal, out side the airport. It had also recommended to generate cash by selling the unused land that corporation holds at various places
such as Biratnagar, Birganj and Tulsipur and retire the disproportionately heavy debt which costs nearly 5.5% of the corporation's
total annual revenue.

If RNAC goes on implementing Dr. Sharma Committee report, it can be expected to sell soon the three Twin Otter and one AVRO craft that are lying inoperative for some years. Also to be sold off are spareparts worth nearly one billion rupees that are lying in its store without moving for
several years.

Dr. Sharma Committee has also advised the government to turn the airline into a company and privatise.