ECONOMY

Future of Melamchi project in doldrums

      Because of the conflict between the two industrial groups of the country, the future of Melamchi project is in doldrums.

      Though the government has accepted the Norwegian government’s suggestion to privatise Butwal Power Company before launching the Melamchi Project, the privatisation process has been delayed due to conflict between Chaudhary Group and Jyoti Group.

      According to the Privatisation Cell of Ministry of Finance, only two firms, Independent Power Company and InterCraft, had submitted tenders for the privatisation of Butwal Power Company.

      The government not satisfied with the proposals recalled the tender. Again, only these two firms bidded. Still, the government does not seem to be satisfied with the proposals.

(Naya Rastra Pukar, Friday, Oct. 8)

Nepalese carpet under Indian control

      The Nepalese handwoven woollen carpet, which was one of the three backbones of the country's economy, is not under the sole control of one Indian export company, Bholanath International Limited.

      The Indian company has opened an agent office in Nepal and is exporting a huge quantity of Nepalese carpet to the European and American markets. The company, which has also succeeded in acquiring the ISO 9002 symbol, has exported carpets worth of IC Rs. 200 million in the last year alone. The company buys carpets from Nepalese producers but give minimum price for them. It has even put made in India label on the Nepalese carpets and has also succeeded in announcing its carpets as child labour free. However, the government has been keeping mum over the issue. It is an irony that Nepalese has to depend on a foreign broker to reach its produce in the world market.

(Ravibar, October 10, Sunday)

Price of diesel and kerosene to go up

      As the Government of India has increased the price of diesel by 35 per cent, it is assumed that the price of kerosene and diesel might be increased immediately after Dashain. The rise of price of diesel had risen in the international market three months ago, but the coalition government there had not raised the price.

As diesel is cheaper in Nepal than in India, there might be smuggling of diesel from Nepal to India. Meanwhile, there are increasing number of Indian vehicles coming to Nepal and filling up their tank has increased in the border areas. It is because of increase in diesel price in India,  diesel price between Nepal and India may have varied from Rs. eight to nine per litre. So, Nepal Oil Corporation will be compelled to increase the price.

(Naya Rastra Pukar, Friday, Oct. 8)