SANGAM PRASAIN
KATHMANDU, APR 28 -
The banda organized on Wednesday could have dire consequences for the country’s tourism, said travel trade entrepreneurs complaining that political parties had gone back on their word not to hold strikes during Nepal Tourism Year 2011.
More than 22 political parties had signed a commitment letter not to organize strikes or any form of protest that would directly impact Nepal Tourism Year. The Newa Tamsaling Joint Struggle Committee called a general shutdown in the capital and adjoining districts on Wednesday hurting tourism activities.
“The commitment has not been translated into action,” said Aditya Baral, spokesperson of the Nepal Tourism Board. The government and the private sector have made large investments in tourism encouraged by the pledge made by political parties not to disrupt Nepal Tourism Year.
“Visitors come here for vacation and to observe the natural beauty of the country believing that it is a safe holiday destination,” Baral said.
Nepal’s tourism industry has been recovering from a massive beating it took during the decade-long armed conflict (1996-2006) and has been working to revive its image. The Nepal Tourism Year campaign is a bid to rejuvenate the tourism sector by sending a message to the international community that Nepal is safe to visit.
“Unfortunately, all the activities that tourists had planned for Wednesday had to be cancelled,” said Ashok Pokhrel, president of the Nepal Association of Tour Operators. Travel traders said that tourism had become a major part of the economy around the world, and that the sector had become more competitive. “In such a situation, strikes are likely to hurt Nepal’s tourism as their impact is seen only later,” Pokhrel added.
Meanwhile, hotels have been reporting cancellations of reservations for the days before and after the deadline for writing the constitution on May 28 fearing political trouble.
Arjun Prasad Sharma, president of the Nepal Association of Tour and Travel Agents, said that the culture of organizing strikes had been diminishing, but Wednesday’s strike could revive such tendencies. The Kathmandu Valley saw a strike announced by the political parties after a year’s gap. The last banda, called by Maoist trade unions, lasted from May 1-7, 2010.
Tourist arrivals in Nepal by air reached an all-time high of 448,769 in 2010. Entrepreneurs are optimistic that the target of one million arrivals can be achieved in 2011.
A similar campaign called Visit Nepal Year held in 1998 helped tourist arrivals to cross the 400,000 mark in 1999. However, it took another 11 years for arrivals to return to that level.
The possibility of a political crisis has always remained a major concern for tourism entrepreneurs. Though the parties have pledged that there would not be any bandas and strikes from their part during Nepal Tourism Year, the industry was doubtful they would keep their promise.
“Whatever little tourism activity is taking place will be stifled with bandas making a reappearance,” Sharma added.
Wednesday, April 27, 2011
Tuesday, April 26, 2011
NAC making losses due to services to remote sectors
SANGAM PRASAIN
KATHMANDU, APR 27 -
Nepal Airlines Corporation (NAC) has been racking up losses of Rs 170 million annually from its domestic operation as it has been serving remote sectors at reduced airfares, said airline officials.
The national flag carrier said that the hefty losses were due to flying to remote sectors where operating costs are comparatively higher. A hike in the price of aviation fuel has added to its woes.
Although domestic air passenger movement grew 12.83 percent in 2010 compared to the previous year, NAC’s performance in the domestic sector has been weakening.
According to Tribhuvan International Airport (TIA), the number of passengers carried by NAC in 2010 dipped 11.84 percent to 47,081 from 53,406 in the previous year. In 2010, domestic airlines carried 1,554,701 travellers, or 176,833 more than in 2009.
A source said that internal management problems and customer dissatisfaction with NAC’s service were the major factors behind the carrier losing its image in the aviation market. However, NAC claimed that its losses were due to the low fare structure and increasing operating costs in the remote sectors. “Strikes and other forms of protests are launched if the government revises the airfare in the remote sectors,” said NAC spokesperson Om Gurung. “How can we make a profit by operating at cheap rates?”
NAC said that low seat occupancy was another reason for its losses. According to Gurung, airplanes operating in remote areas need to carry stock fuel that limits the number of passengers.
Moreover, passengers do not pay a fuel surcharge on NAC as on private airlines. “Private air operators do not fly to remote destinations where the operating cost is higher than the airfare,” said Binod Giri, chief of the safety department, Civil Aviation Authority of Nepal (CAAN).
Meanwhile, on the international front, NAC has not been able to expand its services for lack of aircraft. According to TIA, the carrier recorded a negative growth in passenger movement in 2010. It flew 232,577 passengers in 2010 compared to 237,751 in 2009, a drop of 2.17 percent.
With losses on both sectors, NAC is surviving on revenues from ground handling at TIA. NAC said that if it were to increase the airfare and expand its fleet, it could make profits. Currently, the carrier has three Twin Otters serving domestic destinations which are being used to the maximum on remote sectors.
Between 1972 and 1979, the Canadian International Development Agency donated seven Twin Otters to NAC. Among them, three are in operation, two are out of commission and two can be put back in service after maintenance, said an NAC official. “Within one month, the 9N-ABX Twin Otter aircraft will be back in the air,” said Achyut Pahadi, chief of the engineering department at NAC. It had been grounded for more than two years. Pahadi added that the fourth Twin Otter would be operated on the lucrative tourist sector of Lukla. Private airlines are making profits as they prefer to fly on tourist routes and shun remote destinations.
KATHMANDU, APR 27 -
Nepal Airlines Corporation (NAC) has been racking up losses of Rs 170 million annually from its domestic operation as it has been serving remote sectors at reduced airfares, said airline officials.
The national flag carrier said that the hefty losses were due to flying to remote sectors where operating costs are comparatively higher. A hike in the price of aviation fuel has added to its woes.
Although domestic air passenger movement grew 12.83 percent in 2010 compared to the previous year, NAC’s performance in the domestic sector has been weakening.
According to Tribhuvan International Airport (TIA), the number of passengers carried by NAC in 2010 dipped 11.84 percent to 47,081 from 53,406 in the previous year. In 2010, domestic airlines carried 1,554,701 travellers, or 176,833 more than in 2009.
A source said that internal management problems and customer dissatisfaction with NAC’s service were the major factors behind the carrier losing its image in the aviation market. However, NAC claimed that its losses were due to the low fare structure and increasing operating costs in the remote sectors. “Strikes and other forms of protests are launched if the government revises the airfare in the remote sectors,” said NAC spokesperson Om Gurung. “How can we make a profit by operating at cheap rates?”
NAC said that low seat occupancy was another reason for its losses. According to Gurung, airplanes operating in remote areas need to carry stock fuel that limits the number of passengers.
Moreover, passengers do not pay a fuel surcharge on NAC as on private airlines. “Private air operators do not fly to remote destinations where the operating cost is higher than the airfare,” said Binod Giri, chief of the safety department, Civil Aviation Authority of Nepal (CAAN).
Meanwhile, on the international front, NAC has not been able to expand its services for lack of aircraft. According to TIA, the carrier recorded a negative growth in passenger movement in 2010. It flew 232,577 passengers in 2010 compared to 237,751 in 2009, a drop of 2.17 percent.
With losses on both sectors, NAC is surviving on revenues from ground handling at TIA. NAC said that if it were to increase the airfare and expand its fleet, it could make profits. Currently, the carrier has three Twin Otters serving domestic destinations which are being used to the maximum on remote sectors.
Between 1972 and 1979, the Canadian International Development Agency donated seven Twin Otters to NAC. Among them, three are in operation, two are out of commission and two can be put back in service after maintenance, said an NAC official. “Within one month, the 9N-ABX Twin Otter aircraft will be back in the air,” said Achyut Pahadi, chief of the engineering department at NAC. It had been grounded for more than two years. Pahadi added that the fourth Twin Otter would be operated on the lucrative tourist sector of Lukla. Private airlines are making profits as they prefer to fly on tourist routes and shun remote destinations.
Monday, April 25, 2011
Fuel crisis hits normal life across country
SANGAM PRASAIN
KATHMANDU, APR 26 -
Even as the fuel shortage is beginning to take a toll on normal life across the country, the government and Nepal Oil Corporation (NOC) have failed to agree on a plan to address the root cause of the recurring problem. The Ministry of Finance (MoF) on Monday refused to release additional money to NOC to finance its import of petroleum products.
NOC has been asking the government to either allow it to revise the price in line with the international market or provide a temporary subsidy until the international market price sees a recovery. The NOC has even asked the government to waive taxes imposed on petroleum products for a limited period. But, MoF has ruled out further subsidies or tax waivers. The government is unwilling to allow readjustment of fuel prices to reflect the international market price fearing a political backlash.
“Prime Minister Jhala Nath Khanal is not in favour of a hike until the constitution drafting deadline ends,” Prakash Jwala, Chief Political Advisor to the PM said. “To address the ongoing fuel crisis, we will discuss and find a way out.” No discussion has been scheduled yet to address the issue. Though the situation demands quick decisive action on the part of the government, it appears to be dithering and aggravating a manageable crisis.
Meanwhile, the fuel shortage has adversely affected normal life in Tarai districts. With the NOC’s regional dealers curtailing supply by half, the crisis has crippled different Tarai districts.
Rupandehi, Nawalparasi, Chitwan, Makwanpur, Bara and Parsa are facing acute fuel shortage. The shortage has affected public transportation system and industrial areas. “Low supply of fuel has dramatically affected the market in Chitwan,” said Kashi Pathak, president of Chitwan Petroleum Dealers’ Association.
Black marketeering and hoarding of petroleum products is rampant in Birgunj. “NOC has been supplying five to seven tankers full of fuel to Birgunj,” said Nagendra Kurmi, NOC chief in Birgunj. According to a source traders are selling fuel charging an additional Rs seven per litre. Traders are supplying fuel to big industries, crusher and brick factories at big profits, the source claimed.
Tourist hotspot Pokhara and adjacent districts are also facing acute fuel shortage for the last few days. The supply in Pokhara has been slashed to 36,000 litres per day from the usual 50,000 litres. Reduced petroleum supply in the Far Western region has affected normal life aside from development projects. Construction and irrigation both are hit. The entire region has a monthly 4 million litres diesel consumption. However, for the last two weeks, the region has received only 800,000 litres.
Normal life in Nepalgunj, Gulariya, Surkhet and Dang in the Mid Western region has been affected by the fuel crunch ever since petroleum import from Gonda in India stopped last week.
The eastern region has been receiving only 150,000 litres of diesel a day against the usual 400,000 litres per day. Mechi, Koshi and Sagarmatha zones in the Eastern Development Region have 450 petroleum dealers. All refuelling stations under the dealers’ distribution have hung up ‘no fuel’ placards. Last week, Digambar Jha, Managing Director of NOC, warned that the supply could be further curtailed if the government does not address the issue immediately. At the current rate, the supply will be slashed by 40 percent in April and 20 percent each month thereafter.
KATHMANDU, APR 26 -
Even as the fuel shortage is beginning to take a toll on normal life across the country, the government and Nepal Oil Corporation (NOC) have failed to agree on a plan to address the root cause of the recurring problem. The Ministry of Finance (MoF) on Monday refused to release additional money to NOC to finance its import of petroleum products.
NOC has been asking the government to either allow it to revise the price in line with the international market or provide a temporary subsidy until the international market price sees a recovery. The NOC has even asked the government to waive taxes imposed on petroleum products for a limited period. But, MoF has ruled out further subsidies or tax waivers. The government is unwilling to allow readjustment of fuel prices to reflect the international market price fearing a political backlash.
“Prime Minister Jhala Nath Khanal is not in favour of a hike until the constitution drafting deadline ends,” Prakash Jwala, Chief Political Advisor to the PM said. “To address the ongoing fuel crisis, we will discuss and find a way out.” No discussion has been scheduled yet to address the issue. Though the situation demands quick decisive action on the part of the government, it appears to be dithering and aggravating a manageable crisis.
Meanwhile, the fuel shortage has adversely affected normal life in Tarai districts. With the NOC’s regional dealers curtailing supply by half, the crisis has crippled different Tarai districts.
Rupandehi, Nawalparasi, Chitwan, Makwanpur, Bara and Parsa are facing acute fuel shortage. The shortage has affected public transportation system and industrial areas. “Low supply of fuel has dramatically affected the market in Chitwan,” said Kashi Pathak, president of Chitwan Petroleum Dealers’ Association.
Black marketeering and hoarding of petroleum products is rampant in Birgunj. “NOC has been supplying five to seven tankers full of fuel to Birgunj,” said Nagendra Kurmi, NOC chief in Birgunj. According to a source traders are selling fuel charging an additional Rs seven per litre. Traders are supplying fuel to big industries, crusher and brick factories at big profits, the source claimed.
Tourist hotspot Pokhara and adjacent districts are also facing acute fuel shortage for the last few days. The supply in Pokhara has been slashed to 36,000 litres per day from the usual 50,000 litres. Reduced petroleum supply in the Far Western region has affected normal life aside from development projects. Construction and irrigation both are hit. The entire region has a monthly 4 million litres diesel consumption. However, for the last two weeks, the region has received only 800,000 litres.
Normal life in Nepalgunj, Gulariya, Surkhet and Dang in the Mid Western region has been affected by the fuel crunch ever since petroleum import from Gonda in India stopped last week.
The eastern region has been receiving only 150,000 litres of diesel a day against the usual 400,000 litres per day. Mechi, Koshi and Sagarmatha zones in the Eastern Development Region have 450 petroleum dealers. All refuelling stations under the dealers’ distribution have hung up ‘no fuel’ placards. Last week, Digambar Jha, Managing Director of NOC, warned that the supply could be further curtailed if the government does not address the issue immediately. At the current rate, the supply will be slashed by 40 percent in April and 20 percent each month thereafter.
Sunday, April 24, 2011
Ensuring smooth oil supply: It’s a hard nut to crack
SANGAM PRASAIN
KATHMANDU, APR 25 -
Unless the government takes a hard decision, managing resources for oil import is going to become a great headache for it. This is what the oil import in the first nine months of the current fiscal year suggests.
Nepal’s oil import bill during the period has surpassed the the entire last fiscal’s figure. With soaring oil price, the import bill surged by 62.29 percent in the first nine months.
The Nepal Oil Corporation (NOC)’s statistics show that the country imported fuel worth Rs 55.57 billion over the period, against Rs 34.24 billion in the same period last year. Nepal had imported petroleum products worth Rs 51.55 billion in 2009-10. The annual data released by the Nepal Rastra Bank (NRB) showed that petroleum products topped the import chart last year.
With 14-hour daily load shedding and a surge in the number of four wheelers, fuel consumption in the country is increasing every year. Import of petroleum products increased by almost 25 percent in 2009-10, whereas the previous year’s figure was at 17 percent.
According to NOC statistics, petroleum import increased by 11.22 percent in the first nine months of 2010-11. NOC imported 847,884 KL of petroleum products over the period, against 762,334 KL last year. The state oil monopoly says that fuel import is likely to go up significantly with increasing consumption. And, because of the increase in international market price, the country has to doll out more money for oil import.
“With the price in the international market
soaring, monthly import of NOC is likely to touch Rs 8 billion,” said Mukunda Dhungel, spokes-person for NOC.
Govt must shore up oil import: NOC
With the country reeling under fuel crisis and NOC struggling to manage smooth supply citing resource crunch, the Ministry of Commerce
and Supplies (MoCS) said the government has no options, but to continue the import subsidy.
Even though the Ministry of Finance is clearly against releasing more resources to NOC, MoCS officials are once again eyeing subsidy from the finance ministry. “We are discussing the issue with finance ministry on Monday,” said MoCS Secretary Purushottam Ojha.
According to Ojha, neither the ministry nor the NOC can hike petroleum products’ price until the high level petroleum reform task force submits its report. “Therefore, the government should bailout the debt-ridden NOC,” said Ojha.
Finance ministry has already provided an additional Rs 4 billion to NOC to finance oil import in the first nine months of the current fiscal. NOC recently sought an additional Rs 1.75 billion to improve supply.
KATHMANDU, APR 25 -
Unless the government takes a hard decision, managing resources for oil import is going to become a great headache for it. This is what the oil import in the first nine months of the current fiscal year suggests.
Nepal’s oil import bill during the period has surpassed the the entire last fiscal’s figure. With soaring oil price, the import bill surged by 62.29 percent in the first nine months.
The Nepal Oil Corporation (NOC)’s statistics show that the country imported fuel worth Rs 55.57 billion over the period, against Rs 34.24 billion in the same period last year. Nepal had imported petroleum products worth Rs 51.55 billion in 2009-10. The annual data released by the Nepal Rastra Bank (NRB) showed that petroleum products topped the import chart last year.
With 14-hour daily load shedding and a surge in the number of four wheelers, fuel consumption in the country is increasing every year. Import of petroleum products increased by almost 25 percent in 2009-10, whereas the previous year’s figure was at 17 percent.
According to NOC statistics, petroleum import increased by 11.22 percent in the first nine months of 2010-11. NOC imported 847,884 KL of petroleum products over the period, against 762,334 KL last year. The state oil monopoly says that fuel import is likely to go up significantly with increasing consumption. And, because of the increase in international market price, the country has to doll out more money for oil import.
“With the price in the international market
soaring, monthly import of NOC is likely to touch Rs 8 billion,” said Mukunda Dhungel, spokes-person for NOC.
Govt must shore up oil import: NOC
With the country reeling under fuel crisis and NOC struggling to manage smooth supply citing resource crunch, the Ministry of Commerce
and Supplies (MoCS) said the government has no options, but to continue the import subsidy.
Even though the Ministry of Finance is clearly against releasing more resources to NOC, MoCS officials are once again eyeing subsidy from the finance ministry. “We are discussing the issue with finance ministry on Monday,” said MoCS Secretary Purushottam Ojha.
According to Ojha, neither the ministry nor the NOC can hike petroleum products’ price until the high level petroleum reform task force submits its report. “Therefore, the government should bailout the debt-ridden NOC,” said Ojha.
Finance ministry has already provided an additional Rs 4 billion to NOC to finance oil import in the first nine months of the current fiscal. NOC recently sought an additional Rs 1.75 billion to improve supply.
Saturday, April 23, 2011
Buddha’s birthplace brings ‘em in by 17pc more
SANGAM PRASAIN
KATHMANDU, APR 22 -
Tourist arrivals to the Buddha’s birthplace Lumbini through Bhairahawa increased 17 percent in the first three months of 2011.
According to the Department of Immigration, a total of 42,422 visitors entered Nepal through Bhairahawa compared to 36,523 in the same period last year.
The southern border point of Bhairahawa is the gateway to Lumbini. The figure excludes overland Indian visitors as they are not counted in the country’s tourism data. Last year, Lumbini received 102,059 visitors compared to 82,443 in 2009.
Tourism entrepreneurs attribute this growth to development of tourism infrastructure in Lumbini and the return of peace in Nepal. There has been a resurgence in pilgrim arrivals from predominantly Buddhist countries like Japan, Thailand, Sri Lanka and South Korea after suffering a setback during the Maoist conflict and political instability.
“Visitor stay in Lumbini has also slightly increased with more infrastructure being developed in the area,” said Bikrum Pandey, managing director of Himalaya Expeditions which also runs Buddhist Circuits.com. According to him, the Buddhist circuit is a package that begins from Lumbini and passes through Kapilvastu, Shravasti, Kushinagar, Sarnath, Bodhgaya, Vaishali, Rajgir, Nalanda and Patna before returning to Lumbini.
“It is estimated that business for Buddhist Circuits was about 300,000 tourists.” Pandey added that the length of stay was nine to 10 days and daily spending amounted to US$ 150-250.
“Pilgrims are high-spending customers,” said Pandey. He added that as India held a 90 percent share of the pilgrim market, it was hard to compete with the established market.
“To attract more visitors, we are launching the ‘Following footsteps of Lord Buddha’ package which seeks to draw tourists to the birthplace first.” The travel trade and the government too need to work hard for the purpose, Pandey added.
The trend of building hotels with modern facilities has intensified in Lumbini encouraged by an increase in arrivals. The Lumbini Hotel Kasai was constructed by a Japanese investor while Sri Lankan Pilgrim Rest was built with the Sri Lankan government’s investment. Likewise, the Hokke Hotel, established by the Hokke Club of Japan, is managed by an Indian private company. Domestic investors have built the Lumbini Bamboo Resort Pali, Buddha Maya and the Crystal.
The government has planned to develop Bhairahawa airport as a regional international airport in a bid to exploit the pilgrimage tourism potential. “Buddha Air will also be launching flights on the Bhairahawa-Kolkata sector which will help to bring visitors directly to Lumbini,” Pandey said.
Nepal has been trying to develop Lumbini as an international centre for pilgrimage and tourism. Recently, an international conservation team has begun work on restoring three endangered monuments at the Buddha’s birthplace. The restoration campaign is funded by the government of Japan and coordinated by the UNESCO office in Kathmandu.
Basudev Kafle, an official at the Department of Immigration, said that improved facilities in the area have also boosted arrivals during the last two years. “Lumbini can become one of the major tourist destinations if the government gives it greater priority.”
According to the Lumbini Development Trust, Lumbini hosted 82,443 tourists in 2009, 82,075 in 2008 and 71,053 in 2007.
Arrival in Lumbini
(Jan-March)
Country 2010 2011
Sri Lanka 13,945 16,283
Thailand 9,143 14,133
South Korea 2,111 2,744
Others 11,324 9,262
KATHMANDU, APR 22 -
Tourist arrivals to the Buddha’s birthplace Lumbini through Bhairahawa increased 17 percent in the first three months of 2011.
According to the Department of Immigration, a total of 42,422 visitors entered Nepal through Bhairahawa compared to 36,523 in the same period last year.
The southern border point of Bhairahawa is the gateway to Lumbini. The figure excludes overland Indian visitors as they are not counted in the country’s tourism data. Last year, Lumbini received 102,059 visitors compared to 82,443 in 2009.
Tourism entrepreneurs attribute this growth to development of tourism infrastructure in Lumbini and the return of peace in Nepal. There has been a resurgence in pilgrim arrivals from predominantly Buddhist countries like Japan, Thailand, Sri Lanka and South Korea after suffering a setback during the Maoist conflict and political instability.
“Visitor stay in Lumbini has also slightly increased with more infrastructure being developed in the area,” said Bikrum Pandey, managing director of Himalaya Expeditions which also runs Buddhist Circuits.com. According to him, the Buddhist circuit is a package that begins from Lumbini and passes through Kapilvastu, Shravasti, Kushinagar, Sarnath, Bodhgaya, Vaishali, Rajgir, Nalanda and Patna before returning to Lumbini.
“It is estimated that business for Buddhist Circuits was about 300,000 tourists.” Pandey added that the length of stay was nine to 10 days and daily spending amounted to US$ 150-250.
“Pilgrims are high-spending customers,” said Pandey. He added that as India held a 90 percent share of the pilgrim market, it was hard to compete with the established market.
“To attract more visitors, we are launching the ‘Following footsteps of Lord Buddha’ package which seeks to draw tourists to the birthplace first.” The travel trade and the government too need to work hard for the purpose, Pandey added.
The trend of building hotels with modern facilities has intensified in Lumbini encouraged by an increase in arrivals. The Lumbini Hotel Kasai was constructed by a Japanese investor while Sri Lankan Pilgrim Rest was built with the Sri Lankan government’s investment. Likewise, the Hokke Hotel, established by the Hokke Club of Japan, is managed by an Indian private company. Domestic investors have built the Lumbini Bamboo Resort Pali, Buddha Maya and the Crystal.
The government has planned to develop Bhairahawa airport as a regional international airport in a bid to exploit the pilgrimage tourism potential. “Buddha Air will also be launching flights on the Bhairahawa-Kolkata sector which will help to bring visitors directly to Lumbini,” Pandey said.
Nepal has been trying to develop Lumbini as an international centre for pilgrimage and tourism. Recently, an international conservation team has begun work on restoring three endangered monuments at the Buddha’s birthplace. The restoration campaign is funded by the government of Japan and coordinated by the UNESCO office in Kathmandu.
Basudev Kafle, an official at the Department of Immigration, said that improved facilities in the area have also boosted arrivals during the last two years. “Lumbini can become one of the major tourist destinations if the government gives it greater priority.”
According to the Lumbini Development Trust, Lumbini hosted 82,443 tourists in 2009, 82,075 in 2008 and 71,053 in 2007.
Arrival in Lumbini
(Jan-March)
Country 2010 2011
Sri Lanka 13,945 16,283
Thailand 9,143 14,133
South Korea 2,111 2,744
Others 11,324 9,262
Thursday, April 21, 2011
Oil dealers urge formation of petroleum board to ease crisis
SANGAM PRASAIN
KATHMANDU, APR 22 -
With the fuel crisis intensifying and the government showing unwillingness to adjust prices, the Nepal Petroleum Dealers National Association (NPDNA) has demanded forming a high-level powerful petroleum board.
The NPDNA on Thursday said that the issue of petroleum pricing and supply would be resolved by setting up such an independent body. “Spiralling oil prices in the international market are unlikely to stabilize immediately,” said NPDNA president Saroj Pandey. “Revising petroleum prices in Nepal once will not help settle the issue. Hence, there should be a permanent mechanism.”
According to the NPDNA, the proposed board would be given the right to recommend appropriate policies on the import, quality, pricing and sales mechanism of petroleum products to the government.
The NPDNA’s suggestion for a petroleum board is in line with what the high-level Petroleum Sector Reform Taskforce is mulling. The taskforce is also currently discussing setting up an independent body to fix prices. The NPDNA said the idea of forming an independent body was appropriate. It has also suggested to the taskforce to include a representative of the dealers in the independent body. The NPDNA has called for reducing the tax imposed on petroleum products. It has suggested imposition of multiple VAT on petroleum products. “There should be 6 percent VAT imposed on petroleum products,” said the NPDNA. In the last fiscal year, the government collected Rs 12.26 billion in taxes on petroleum. This year, the revenue is expected to touch Rs 16 billion.
The NPDNA has also suggested to the taskforce to scrap the VAT refund on petroleum products provided to various industries. Currently, big hotels, restaurants and industries are benefiting from this subsidy regime. The NPDNA criticized the government’s providing subsidies to Nepal Oil Corporation (NOC) instead of allowing it to adjust fuel prices in line with the international market. “The use of the development budget for the import of petroleum products is not right,” said Pandey.
In the last few months, the government has been bailing out cash-strapped NOC with loans to maintain regular fuel supplies in the country. The government has provided it Rs 4 billion to import fuel in the first nine months of the current fiscal year.
The Rs 1.5 billion that the government provided to NOC recently was diverted from the development budget allocated for the Rural Area Professional Development Programme.
KATHMANDU, APR 22 -
With the fuel crisis intensifying and the government showing unwillingness to adjust prices, the Nepal Petroleum Dealers National Association (NPDNA) has demanded forming a high-level powerful petroleum board.
The NPDNA on Thursday said that the issue of petroleum pricing and supply would be resolved by setting up such an independent body. “Spiralling oil prices in the international market are unlikely to stabilize immediately,” said NPDNA president Saroj Pandey. “Revising petroleum prices in Nepal once will not help settle the issue. Hence, there should be a permanent mechanism.”
According to the NPDNA, the proposed board would be given the right to recommend appropriate policies on the import, quality, pricing and sales mechanism of petroleum products to the government.
The NPDNA’s suggestion for a petroleum board is in line with what the high-level Petroleum Sector Reform Taskforce is mulling. The taskforce is also currently discussing setting up an independent body to fix prices. The NPDNA said the idea of forming an independent body was appropriate. It has also suggested to the taskforce to include a representative of the dealers in the independent body. The NPDNA has called for reducing the tax imposed on petroleum products. It has suggested imposition of multiple VAT on petroleum products. “There should be 6 percent VAT imposed on petroleum products,” said the NPDNA. In the last fiscal year, the government collected Rs 12.26 billion in taxes on petroleum. This year, the revenue is expected to touch Rs 16 billion.
The NPDNA has also suggested to the taskforce to scrap the VAT refund on petroleum products provided to various industries. Currently, big hotels, restaurants and industries are benefiting from this subsidy regime. The NPDNA criticized the government’s providing subsidies to Nepal Oil Corporation (NOC) instead of allowing it to adjust fuel prices in line with the international market. “The use of the development budget for the import of petroleum products is not right,” said Pandey.
In the last few months, the government has been bailing out cash-strapped NOC with loans to maintain regular fuel supplies in the country. The government has provided it Rs 4 billion to import fuel in the first nine months of the current fiscal year.
The Rs 1.5 billion that the government provided to NOC recently was diverted from the development budget allocated for the Rural Area Professional Development Programme.
Wednesday, April 20, 2011
Kansakar vows to buy aircraft for NAC
SANGAM PRASAIN
KATHMANDU, APR 21 -
A day after being acquitted by the Special Court of corruption charges in the
Airbus purchase deal, Nepal Airlines Corporation (NAC) executive chairman Sugat Ratna Kansakar said that he would purchase aircraft for the national flag carrier at any cost.
Kansakar made this remark after resuming office on Wednesday at NAC. Addressing the staff, Kansakar expressed his confidence of overcoming any challenge to acquire aircraft for NAC. “I have suffered extremely over the aircraft purchase deal, and I don’t want to let my efforts go in vain,” said Kansakar to appreciative employees during the one-and-a-half-hour long welcome programme.
Although supporters of Kansakar were seen to be enthusiastic, unions and staffers supporting NAC managing director Kul Bahadur Limbu remained absent at the welcome programme. Kansakar and Limbu were at opposite ends regarding NAC’s plan to purchase aircraft from Airbus. After the Commission for the Investigation of Abuse of Authority (CIAA) filed a corruption charge against Kansakar, Limbu was running the show at NAC.
The Special Court on Tuesday acquitted Kansakar and five other NAC officials - deputy managing directors Raju
Bahadur KC and Ganesh Thakur, acting director Gyanendra Purush Dhakal, director Mayur Shumsher Rana and acting deputy director Keshav Raj Sharma — who had been accused of corruption in the Airbus purchase deal. “All the officials will carry on their respective duties from Thursday,” said KC.
On the same occasion, Thakur said that signing of the deal to send the lock-up money to Airbus was one of the happiest moments of his life. “Unfortunately, the purchase process was stopped.”
The acquitted officials pointed out that the aircraft purchase deal was the right move. “Our efforts have proved that we were in favour in NAC,” the team said.
KATHMANDU, APR 21 -
A day after being acquitted by the Special Court of corruption charges in the
Airbus purchase deal, Nepal Airlines Corporation (NAC) executive chairman Sugat Ratna Kansakar said that he would purchase aircraft for the national flag carrier at any cost.
Kansakar made this remark after resuming office on Wednesday at NAC. Addressing the staff, Kansakar expressed his confidence of overcoming any challenge to acquire aircraft for NAC. “I have suffered extremely over the aircraft purchase deal, and I don’t want to let my efforts go in vain,” said Kansakar to appreciative employees during the one-and-a-half-hour long welcome programme.
Although supporters of Kansakar were seen to be enthusiastic, unions and staffers supporting NAC managing director Kul Bahadur Limbu remained absent at the welcome programme. Kansakar and Limbu were at opposite ends regarding NAC’s plan to purchase aircraft from Airbus. After the Commission for the Investigation of Abuse of Authority (CIAA) filed a corruption charge against Kansakar, Limbu was running the show at NAC.
The Special Court on Tuesday acquitted Kansakar and five other NAC officials - deputy managing directors Raju
Bahadur KC and Ganesh Thakur, acting director Gyanendra Purush Dhakal, director Mayur Shumsher Rana and acting deputy director Keshav Raj Sharma — who had been accused of corruption in the Airbus purchase deal. “All the officials will carry on their respective duties from Thursday,” said KC.
On the same occasion, Thakur said that signing of the deal to send the lock-up money to Airbus was one of the happiest moments of his life. “Unfortunately, the purchase process was stopped.”
The acquitted officials pointed out that the aircraft purchase deal was the right move. “Our efforts have proved that we were in favour in NAC,” the team said.
Subscribe to:
Posts (Atom)