Briefs (Spotlight Weekly)

King Gyanendra (right) meets with Indian External Affairs Minister K. Natwar Singh

THE LOCAL DEVELOPMENT MINISTRY is proceeding to make available 50 percent of revenue earned from hydro power projects to the local bodies to carry out development works. This year the government has collected around Rs 750 million as revenue from hydroelectricity projects. This is the first time the government is making available this resource to local bodies in accordance with the Local Self Governance Act 1998. The local representatives had been demanding the government to implement this provision for long. “We have already prepared a distribution structure, we will start handing over the money to the District Development Committee (DDC) once the require process is completed,” said an official. According to officials, the government collected revenue totaling Rs 540 million from central region, Rs 191 million from western region, Rs 4.3 million from mid-western region and Rs 4 million from eastern region. The far western region did not have such projects. However, after the generation of electricity from proposed West Seti and Mahakali project, this region will also start benefiting. As per the new provisions, 12 percent of the revenue will be given to the district which is home to the hydropower project and the rest will be provided to the region, in which the district is located.

AS THE NEPALI VEGETABLE GHEE MANUFACTURERS could not export the quota-prescribed quantity to India thanks to frequent and various obstructions posed by Indian states, the Indian government has extended the deadline to export the ghee based on quota by another three months. India has provided the annual quota of export of 100,000 metric tons of Vanaspati ghee to Nepal. However, the quota given for the year 2003 could not be fulfilled as the Nepali manufacturers could only export 20,000 metric tons in the period. Subsequently, Indian government had first extended the deadline up to March and then up to June. Till now only 52,000 metric tons of the product could be exported. Now the Indian side has extended the deadline up to September, according to officials at the Ministry of Industry, Commerce and Supplies. The ministry officials have said that they have received assurances from the State Trading Corporation (STC) of India that there will be no more obstructions. Vanaspati ghee is one of the main items Nepal exports to India. Ghee worth Rs 5.5 billion is annually exported to India.

THE WORLD BANK (WB) HAS APPROVED TWO separate projects aimed at poverty reduction in Nepal. “A US$ 25.3 million credit was approved to extend water supply and sanitation to over 800,000 rural folks,” according to WB statement. “A second US$ 15 million grant was also approved for the Poverty Alleviation Fund. A pilot initiative has been created to bring increased opportunities for income generation and access to basic services and infrastructures to poor communities in rural areas,” the statement adds. “While the government of Nepal struggles to provide effective support to marginalized groups, it also recognizes that some NGOs, community-based organizations and donors have implemented a number of successful programs to reach out to the marginalized groups, through community-managed infrastructure,” Ken Ohashi, the WB’s country director said.

THE ARRIVAL OF TOURISTS BY AIR ROSE BY 22 percent in the month of May compared to the same month a year ago. However, the rate of growth of tourist arrival seems to have decelerated compared to previous month. According to Nepal Tourism Board (NTB), third country tourist growth was registered at 48 percent whereas the tourist arrival from India grew marginally by 2 percent. Since May is a major mountaineering season, the arrival of third country tourists has grown handsomely. According to NTB, a total of 22,278 visitors arrived in Nepal during the month, against 18,224 tourists in last May.

AMONG THE 11 NEPALESE MAOIST LEADERS ARRESTED by Bihar police in Patna on Wednesday (June 2) evening, six are said to be its central leaders. The Indian police had arrested them during raids conducted in different places of Patna. Among those arrested include central leaders Kul Prasad KC, Lokendra Bista, Kumar Dahal, Anil Sharma, Hit Bahadur Tamang and its central adviser Chitra Bahadur Shrestha. Others arrested include Rajendra Thapa, Ranju Thapa, Dilip Maharjan, Min Prasad Chapagain and Shyam Yadav. Tamang is the chief of the Autonomous Tamang Revolutionary People’s Council and Maharjan is the chief of the Newa National Liberation Front. The Maoists have already confirmed their arrests. They have said that their leaders were there for health treatment and to conduct party works. The Maoists have urged the Indian government to treat them well and release them. They have also appealed to human rights activists and people to pressurize the Indian government to release their leaders. This is the first time that such a big number of central leaders of the Maoists were arrested together. Their arrests come on the eve of the visit of new Indian External Affairs Minister K. Natwar Singh to Kathmandu. Singh is arriving in Kathmandu on Friday on a ‘goodwill visit’.

NEPALESE GOVERNMENT HAS STARTED TO REACH OUT to the Chinese side for a duty free market access to China. Following Chinese government’s advice to Nepal to enter into ‘Bangkok Agreement’ to get the concessional customs service, Nepal has started bilateral talks as well. Sources said that at a formal meeting, officials of Ministry of Industry, Commerce and Supplies have requested the Chinese embassy officials for duty free facilities and expansion of foreign investment. “We have started consultations at different levels. If needed, we are also preparing to take up this subject with the central government of China,” said officials. Nepal has also started its initiatives to enter into ‘Bangkok Agreement’ to avail of custom facilities from China as a Least Developed Country (LDC). At present, Nepal bears around Rs 9 billion in annual trade deficit with China.