DESPITE PULLING OUT ALL THE STOPS, THE NEPAL Oil Corporation (NOC), on Wednesday, failed to mobilize the required amount of loans, while the deadline to clear dues of Rs 2.4 billion it owes the Indian Oil Corporation (IOC) is drawing near. After the IOC raised concern over a possible failure by NOC to meet the rescheduled deadline of this month-end for clearing the dues, the Ministry of Finance and the central bank requested the consortium of banks to support NOC. Citing lack of strong collateral base, the banks had refused to extend loans to NOC till Tuesday. But following the central bank’s request, three different banks have reluctantly agreed to extend loans amounting to Rs 400 million, which is still much less than what is needed. According to a source in NOC, Standard Chartered Bank and Nabil Bank have just given a nod to extend Rs 150 million each. Nepal Bangladesh Bank has agreed to grant loan worth Rs 100 million. To bail out the NOC, the government has decided to refund VAT worth Rs 400 million to it. The corporation has so far collected about Rs 500 million through sales. Even after these figures are added up, NOC will need a whale of an amount to pay the import bill for this month. The central bank has refused to provide its gold reserves as collateral for importing petroleum products, whereas the second option of sovereign guarantee is not feasible. So, a crisis on the petroleum products front is looming.
NEPALI CONGRESS (NC) PRESIDENT AND FORMER prime minister Girija Prasad Koirala has warned against any move towards abrogating the current constitution. Talking to reporters in Biratnagar, Koirala said such move would be most unfortunate for the institution of monarchy. “Before thinking of introducing new constitution, the King should remember where he was in the past and how he became the King,” Koirala said. He, however, added that though he had not got any indication that a new constitution is on the anvil, the remarks made by vice chairman of the Council of Ministers Dr. Tulsi Giri could reflect the King’s thinking. Koirala also rejected Dr. Giri’s remarks that the current constitution was standing in the way of the fulfillment of objectives of February 1 royal move. “Perhaps many others might have been frightened by his remarks. But not me,” Koirala said. He also raised serious objections over the King’s recent remarks that ‘unnecessary activities were taking place due to huge flow of foreign funds.’ While urging that all should take advantage of the Maoist ceasefire, Koirala ruled out cooperation with armed Maoists.
A BANGLADESHI COMPANY SAID IT IS HOLDING DISCUSSIONS with a leading Nepali industrial group in order to set up a joint venture in herbal processing. Raquib M. Fakhrul, chairman of Ayurveda Pharmacy Ltd. of Bangladesh told reporters that his company has already initiated talks with the Chaudhary Group of Nepal for partnership in manufacturing herbal medicine and other products. “The Bangladeshi companies are keen to expand their market here and are looking forward to herbs imports from Nepal ,” he said. Ambassador of Bangladesh to Nepal , M Humayun Kabir, said Bangla-Nepal joint ventures in banking, insurance, pharmaceuticals and textiles were doing well and that there were possibilities of more joint ventures between the two countries.
MINISTRY OF DEFENSE (MOD) HAS SAID I\“deeply regrets” the comments made by Human Rights Watch (HRW), a New York-based rights group, that the action taken against Royal Nepalese Army (RNA) officials involved in the killing of Maina Sunuwar, girl from Kavre, in an army barrack, was only a ‘cosmetic gesture’. “The Ministry of Defense would like to firmly state that the action taken by the Royal Nepalese Army against three servicemen in reference to the Maina Sunuwar case was in accordance with country's prevailing legal parameters,” a MoD statement said on Saturday. “With reference to Maina Sunuwar case and action taken against the three officers found guilty, the Ministry would like to clarify that the court martial handed down a six month jail sentence on the accused in addition to suspension of promotion for two years and ordered to pay compensation worth one hundred thousand rupees to Sunuwar's family, the three accused officers served six months in army custody.” The three servicemen including Colonel Babi Khatri were placed in solitary confinement in army custody from 14 March 2005 to 9 September 2005 when full investigation before the court martial verdict was underway. The Ministry said the verdict against the guilty in the Maina Sunuwar case has sent a clear signal that those guilty of rights abuses will be punished irrespective of their rank.
A MULTINATIONAL REVIEW TEAM IS VISITING NEPAL next week to monitor developments in the Melamchi Water Supply Project (MWSP). “The review team will arrive in Kathmandu on October 3,” an officer of the project said. The team will study the recent developments and hindrances in the mega project and find out ways to carry on the work in a better way,” the officer added. The $ 400 million MWSP was dealt a severe blow when Norway withdrew its aid of $ 15 million in July 20 from the project. The implementation and completion of the project was clouded after the Norwegian donors withdrew their support from the multinational project. “In this connection, the team will discuss with the Nepali officials possible ways to complete the project in time by all possible means,” the officer said.
