Wednesday, June 1, 2005

Suggestions for upcoming Budget

By Rajendra K. Khetan

1. Labor Law Reforms in tune with liberalization have to be speedily implemented. Flexibility in the terms of employment should be freely allowed. It will boost the productivity and skill of the worker and enhance the employment of local work force.

2. Setting up of Special Economic Zones (SEZ): Fiscal incentives do play an important role in stirring investment if the other factors as above are congenial. An umbrella SEZ Act should be announced with the following characteristics:

-SEZ be not restricted to export only. They can be for commodities as well as for services.

-One SEZ should have only one type of specialized related enterprises, service providers, suppliers, institutions etc. to benefit from the cluster effect.

 -Act should be an enabling act so that depending upon the nature of activities in that particular SEZ, incentives and concessions package can be announced.

 -SEZ Authority should be vested with powers for all functional areas so that a true one-window system can operate.

 -Labor laws should not be applicable in SEZ excepts for those provisions which deal with working conditions, health, safety etc.

3. Promotion of Exports: a) Export duty on finished goods should be fully abolished.

 b)   VAT also should be brought in under bank guarantee facility to those who are registered with bonded warehouse scheme.

c)   Procedure should be announced for availing duty and VAT refunds on intermediate goods supplied to the exporter locally.

 d)   At the moment only the manufactures can engage in exports because they only can avail the duty and VAT refunds. Therefore the concept of Export Trading House , which has already been announced, should be implemented with out any further delay.

 e)   Multi National Company through joint venture should be allowed to engage in exports with a minimum turn over guarantee.

4.Tax : The increase of rate of VAT from 10 to 13 % should be rolled back at least by 50%. This will give immediate relief to the poor and common citizens by reduction in prices.

5.Industrial Security : Special force and monitoring group to be provided for.

6. One window to address all concerns and requirements of the private sector : May it be Revenue related issues like VAT refund, Duty Draw Back, Bonded Warehouse facilities etc., Security related issues for the establishment or the employees, Labor related issues, Investment related issues like Technical, JV and equity participation from India / China or third countries.

7. Reduction in Financing costs for business – The banks are flushed with funds even at interest on deposits as low as 2-3 % p.a.. They should pass this benefit to the borrowers by reducing interest on lending which still crosses double digit in most of cases. Innovative and low cost instruments like Bonds, Debentures, Inter-corporate lending etc. should be allowed. The larger companies should have access to international capital markets after compliance with specific requirements. Reduction in fee and margin requirements for various banking services.

8. Economic Diplomacy : Should capitalize on strategic location between two of the largest markets of the world. Will enjoy LDC status till 2016 and should use opportunities in Pharmaceuticals, Garment etc. Un-obstructed export of Ghee and other restrictive items to India up to the quota limits, import of wheat and rice from FCI. Transit hub for movements of goods from India to China and Vice versa etc.

10. Logistic Costs – Cost of doing business: Logistics cost in Nepal is one of the highest in south Asia. The high logistics costs are attributable to the country being land locked, lack of infrastructure and unfair trade practices. Areas towards reduction of logistics cost are as follows:

a. A fixed and regular schedule of train movement between Kolkatta & Birgunj ICD can save huge logistic cost.

b.       Importers and exporters are paying double Terminal Handling Charges (THC) in the case of using railway. One at Kolkata Port and another at ICD Birgunj.

c.        Nepali trailer rates are very expensive than Indian trailer rates. For example, the transportation cost for 20ft trailer from Birgunj custom to Narayanghat is NRs. 12,800 ( IRs. 8,000) where as for the same kind of Nepali trailer, it cost around NRs. 16,000- 20,000.

11. Infrastructure: Without improvement in quality of infrastructure industrial environment cannot be improved in Nepal. To encourage private sector to invest in infrastructure projects special tax incentives must be proved to the investors.

12. Poverty alleviation is not only HMG's commitment. Private sector is an equal stake holder because the whole issue of development is that of income generation & employment. If development does not take place, investment is stalled and chaos sets in.

SCIENCE/Technology

Protein that suppresses metastasis identified

Scientists have identified a protein that suppresses the spread of cancer. Experts hope the discovery will open up new possibilities for lifesaving treatments.

Death from cancer is most often caused by tumor cells moving from its original site to other parts of the body, such as the brain or liver. The migration of cancer cells around the body is known as metastasis.

Once a cancer has spread to oth­er parts of the body, it is much harder to treat successfully, experts say. That's why it is important to have regular check-ups and cancer screenings.

A team of researchers at Seoul National University showed that there might one day be a way to stop the spread of cancer, boosting the cancer cure rate significantly from the current 50 to 60 percent. "We have now identified the tar­gets that need to be tackled in order to find a way of keeping cancer lo­calized," professor Baek Sung-hee of Seoul National University, who led the research, said. (See photo).

According to Baek, her team proved in the animal test that KAIl, a gene previously pinpoint­ed by other researchers as a metas­tasis suppressor, actually halts or slows down the spread of tumor cells.

Furthermore, they discovered that the coordinated actions of two proteins, Tip60 and beta-catenin, regulate KAI1 and its metastatic potential. While Tip60 activates KAI1 and halts the spread of can­cer, the latter suppresses the gene. It consequently allows cancerous cells to migrate to other parts of the body.

The research was published in the renowned British science journal Nature.

Cancer cell-aging proteins discovered

In the meanwhile, Korean scientists have identified proteins that accelerate the aging of cancerous cells.

Prof. Chung In-kwon and his colleagues at Yonsei University in Seoul said a balancing act by two proteins regulate strips of DNA at the end of chromosomes, a key in the multipli­cation of cancerous cells.

"The new finding not only provided a deeper understanding in the aging process, but it also has opened a way to treat cancer," Chung said.

The study was published in the issue of Genes and Development, an authoritative U.S. science journal.

The journal said the research opened up new territory in studying the aging process, as well as the fight against can­cer.

Inside every cell in our body is a strip of DNA that controls

the cell's aging process. The DNA strip, called telomere, gets shorter every time a cell divides. But cancer cells have ways of blocking the aging process to keep on replicating, scientists be­lieve.

The enzyme called telomerase is known to rebuild telomeres in cancer cells.

However, Chung's team discovered that a protein called `MKRN 1' promotes degradation of telomerase, while the protein `Hsp90' activates it.

In other words, the MKRN1 shortens the telomeres and con­sequently kills cancer cells, while Hsp90 keeps the cells alive, Chung explained.

"If we can manipulate the MKRN I in the body of cancer pa­tients, we can kill malignant cells," he said.

Reported by Lee Sun-young, Text courtesy: KOREA Now, April 30, 2005