Additional RA Flights For Dasain By Our Correspondent Royal Nepal Airlines Corporation (RNAC) is operating additional flights from Kathmandu to remote destinations of the kingdom from September 24 to meet the growing passenger traffic during the Dasain festival. Flights are being added to Rumjatar, Lamidada, Bhojpur, Tumlingtar and Ramechhap. The festival begins on September 28, although the holidays begin on October 4. But it is withdrawing its flights to some sectors, such as the Kathmandu-Bhadrapur route, during the Hindus’ biggest festival as it has to operate additional flights to these remote hilly areas. Dasain is the time when everyone goes home to receive tika and blessings from their elders. Tickets for both buses and aircraft must be booked well in advance. Although there are now more than 10 airlines in the private sector alone, most operate only on the profitable routes. Many of the remote areas are serviced only by Royal Nepal Airlines and at fares far below that of private airlines. The airline currently flies to 28 destinations across the country and operates more than 120 flights a week. Its flights are mainly operated from Kathmandu, Biratnagar, Pokhara and Nepalgunj. Of its fleet of seven Twin Otter aircraft which are pressed into service mostly in the far flung districts of Nepal, five are in operation while two are grounded for regular maintenance. The planes fly to about 10 parts of western Nepal from Nepalgunj, seven destinations in the eastern part of the country from Biratnagar, while three destinations are linked from Pokhara. RA officials said that the airline is resuming its flights to various remote destinations such as Jumla during Dasain keeping in view the demands of the passengers. By Krishna Shrestha - Kodak Nepal, a hundred-per cent export oriented industry, is dismantling its plant in Nepal, packing it and leaving the country. It will possibly move to Russia. - Kodak Nepal is not leaving Nepal immediately. The government is serious to retain the investment. The two statements clearly indicate the dilemma surrounding Kodak Nepal, a multinational company that has made a huge investment in Nepal, following India’s refusal to provide duty free access to Kodak Nepal products as per the provisions of the Nepal-India bilateral treaty of 1996. India claims that the photographic paper produced by Kodak Nepal is not a manufacturing activity. So it is not entitled to duty free access. It is said that India has informed Nepal in written about this. Kodak Nepal is a joint venture between Eastman Kodak of USA (80 per cent) and Kodak India (20 per cent). Besides, the Confederation of Indian Industries (CII) has also asked the Federation of Nepalese Chamber of Commerce and Industries not to issue the Certificate of Origin to Kodak Nepal products. The certificate of origin is a must for duty free access. News reports say that the Indian government has informed Kodak India, too, that it would not entertain Kodak Nepal’s products. Kodak Nepal which has its plant in the Hetauda Industrial District is a US$ 6 million investment. It can produce two million square meters of photographic paper annually. However, Nepalese officials say that it is a genuine manufacturing industry having at least 20 per cent local value addition. Interestingly, India had initially taken keen interest in setting up Kodak Nepal. A senior government official source said on condition of anonymity that the then Indian Ambassador to Nepal K.V. Rajan had personally taken interest in the project. However, before leaving Kathmandu upon completion of his tenure, he, in an interview, said that Kodak Nepal could not be taken as a manufacturing industry. Whether a company stays or not is not the big question. But shifting of Kodak Nepal solely on the ground that India refuses to buy its products could send the wrong signal to foreign investors. Plans to shift the plant could have another impact, namely that no big investment can be made in Nepal without first tapping the vast markets of its northern and southern markets. This could lead to deceleration of the country’s industrialisation process. Nepal faces a capital crunch and the flow of foreign capital is essential for its development. Figures provided by the United Nations Conference on Trade and Development (UNCTAD) shows that Nepal’s share of the overall foreign direct investment inflows in Asia and the Pacific is negligible. From 1991 to 1998, total foreign direct investment (FDI) to Asia and the Pacific was 121,435 million dollars. But Nepal’s share was only 18 million dollars, the lowest figure among SAARC member countries. "If Kodak Nepal moves out of Nepal, it will send a negative signal to foreign investors," says Narendra Kumar Basnyat, President of Nepal-USA Chamber of Commerce and Industry (NUSACCI). Basnyat, who is also chairperson of the Foreign Investment Promotion Committee of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI), says that plans to shift Kodak Nepal is near to truth. Kodak Nepal is a member of NUSACCI. "They have not said anything in writing, but they have expressed their intention of moving from here. They are making one last effort in Washington," Basnyat said. Basnyat blames the government for mishandling the issue. "Other industries that are established here with an eye on the Indian market could also face the same fate if the present problem is not tackled wisely," he warns. But government officials say that it is actively engaged in solving the problem. "I think Kodak will not shift from here. The government has been doing its best to retain the investment. It has been trying its best to convince the Indian government as well as Kodak Nepal," says Chadi Shrestha, Spokesman in the Ministry of Industry, Commerce and Supplies. When contacted, an official of Kodak Nepal Pvt. Ltd. informed that no final decision had been taken on dismantling the project. Meanwhile, officials from Kodak India, one of the partners of Kodak Nepal, are visiting the Himalayan country to hammer out the best solution. Many industrialists say that it might be better to keep the project in low profile for the time being. They argue that India has been reducing tariffs on imports. The product is not included in the negative list. And chances are that the Kodak products can be exported after paying the tariffs in line with the facilities provided to most favoured nations. The United States has also been lobbying the Indian government to provide duty free access to Kodak Nepal products. During American President Bill Clinton’s recent visit to India, the issue was raised. Nepalese officials as well as Nepalese industrialists are optimistic that the issue will again be raised during the on-going visit of Indian Prime Minister Atal Bihari Vajpayee to America. |
