Two cable car projects planned in Kathmandu

Sangam Prasain

KATHMANDU, NOV 30 - The Ministry of Tourism and Civil Aviation is planning to set up two cable cars in the periphery of the Kathmandu Valley before Nepal Tourism Year 2011.

The Tourism Ministry had conducted a pre-investment feasibility study a year ago of five cable car projects: Thankot-Chandragiri (3.2 km), Godavari-Phulchoki (2.31 km) and Budhanilkantha-Shivapuri (3.42 km) in the Kathmandu Valley besides Dhunche-Gosaikunda (9.4 km) and Suspa-Kalinchok (4.5 km).

"Of these five projects, we are planning to push two projects in the Kathmandu Valley periphery targeting NTY 2011," said Rabi Shah, project manager, Tourism Infrastructure Development Project, Tourism Ministry.

He, however, said that it had not been confirmed which projects would be selected among the three. Construction is expected to be completed within 10 months after the feasibility study.

These projects will be developed in the "build own operate transfer" (BOOT) model.

The upper terminal altitude for the Thankot-Chandragiri cable car is 2,539 m, Godavari-Phulchoki 2,660 m, Budhanilkantha-Shivapuri 2,660 m, Dhunche-Gosaikunda 4,205 m and Suspa-Kalinchok 3,400 m.

Nagendra Prasad Ghimire, secretary at the Tourism Ministry, said that the proposed project had attracted a number of investors. He said that four to five investors had applied to invest in the project.

Shah said that cable cars in the Kathmandu Valley periphery would encourage both domestic and international tourists to stay for a longer period. According to him, development of

these projects before NTY 2011 could attract over 10-15 percent more international visitors to these rural destinations.

He said that the major aim of the project in these selected areas was to develop them as hot-spot tourism destinations. "These destinations have immense potential to attract domestic tourists and Indian visitors that provide excellent views of the valley from all the hilltops," he added.

Shah said that the total cost of the five cable car projects had been estimated at Rs. 1,983.95 million. Similarly, the Tourism Ministry has also started a feasibility study of a cable car in Muktinath, he added.



Project Cost Annual income Payback

Thankot-Chandragiri 244.7 77.17 3 years

Godavari-Phulchoki 247.7 71.14 8 years

Budhanilkantha-Shivapuri 249.7 90 6 years

Dhunche-Gosaikunda 850.22 450 9 years

Suspa-Kalinchok 391 65.7 6 years

Nepali sky seeing more flyers than ever

Sangam Prasain
KATHMANDU, NOV 14 - Frequent strikes and bandas and growing competitive market have significantly increased air traffic in domestic sky, as more and more Nepalis now opting to fly rather than taking a road route.

According to the first eight months' data of 2009 released by the Tribhuvan International Airport (TIA), passengers in the domestic aviation have increased by about 40 percent. In the first eight months of this year, 827,315 domestic passengers took flights to reach their destinations compared to 592,748 during the same period last year.

The growth in the number of domestic passengers has been attributed to growing competition among the airlines prompting them to slash their air fare by almost 30-40 percent. "The passengers' compulsions to take air option caused by frequent strikes and bandas for some years also contributed to the rise in air passengers," said airlines operators.

The number of air passengers had also grown to 1,036,586 in 2008 against 916,429 in 2007, according to the Flight Permission Section (FPS) of TIA. This figure represents air passengers of 13 different airline and helicopter services. The number of passengers had declined in 2006 with their number at 882,717 down from 1,110,923 in 2005.

The rise in commercial flight movement is another reason why passengers' numbers has significantly increased. The commercial flight movement in the first eight month of 2009 has reached 44,586 compared to 41697 of the same period last year.

During 2008, total number of flight movements (17 commercial and four non-commercials) was recorded at 69,286. This number was at 61,291 in 2006 and 68,704 in 2005. Currently, 14 commercial airline and helicopter companies are operating in the domestic sky. Pramod Pandey, marketing manager at Agni Air said that passengers' movement in his airlines has increased by 30-40 percent during this period. "Domestic occupancy has increased by 90 percent," said Pandey.

According to Rupesh Joshi, marketing manager of Buddha Air, there has been a drastic increase in the number of passengers this year. "Competition amongst the airlines has lowered the air fare by almost 45 percent," said Joshi. Joshi said that Buddha's airfare for Kathmandu-Biratnagar route had been decreased to almost 45 percent. The total passengers flying by Buddha Air until October reached about 460,000 against 300,000 during the same period last year. According to Joshi, the number of domestic passengers has increased by about 15-20 per cent and the foreigners by about 8-9 percent.

According to Pandey, foreigners' occupancy in small aircrafts saw an increase of 20 percent in October this year. "We received 6,500 foreigners this October compared to 4,500 in the same month last year," he said.

Raj Bahadur Maharjan, manager at the FPS at the TIA said that rise in the domestic flights has caused congestion in air traffic and parking.



Passengers in domestic flights

Month (2008) (2009) Increase (%)

Jan 70,829 81,432 14.96

Feb 83,446 92,526 10.88

March 75,091 109,148 45.35

April 82,707 123,648 49.50

May 83,036 101,260 21.94

June 63,001 96,960 53.90

July 60,602 110,496 82.33

Aug 74,036 111,845 51.06

More airlines to fly to Nepal

Sangam Prasain
KATHMANDU, NOV 23, 2009- International air links to Nepal are set to expand tremendously with new airlines getting operating permits and old airlines increasing their frequency.

Fly Dubai has received approval from the Ministry of Tourism and Civil Aviation (MoTCA) to fly between Dubai and Kathmandu which it will be doing with B737-800 aircraft from the third week of December. The carrier will operate seven flights a week.

"We will soon be approving Kingfisher Airline's application to operate a weekly flight on the Kathmandu-Mumbai sector," said MoTCA secretary Nagendra Prasad Ghimire.

Likewise, Jet Airways has applied to operate additional flights on the Mumbai-Kathmandu and Delhi-Kathmandu sectors.
Ghimire said that China Eastern Airlines had started Kunming-Kathmandu flights. It operates thrice a week.

Dragon Air has doubled its frequency with a wide-body aircraft with a seating capacity of 369.

In the domestic sector, Ghimire said that Buddha Air and Alpine Air had applied to fly to India. Buddha Air has asked for the Pokhara-Lucknow route, and Alpine Air wants to link Kathmandu and Delhi, he added.

"The increase in international flights is due to the rapid economic development of our neighbouring countries which has increased the number

of high-spending tourists," he said.

He added that increasing air connectivity between Nepal and India was the aim of the new air service agreement (ASA) signed between the two countries which has boosted weekly air seats five-fold and opened 10 new destinations.

Nepal and India revised their ASA after 12 years in New Delhi on Sept. 8-9. Under the pact, the two countries have agreed to expand the number of weekly air seats from 6,000 to 30,000.

Nepal can now offer 30,000 air seats per week to seven metropolitan cities in India while 21 other tourism points have been opened to Nepali airlines without seat or flight restrictions.

Ram Kaji Koney, president of the Nepal Association of Tour and Travel Agents (NATTA), said that an air seat shortage had made airfares expensive.

He added that the liberal policy of the Civil Aviation Authority of Nepal (CAAN) had created opportunities for both domestic and foreign carriers which was good for Nepal's tourism and other sectors.

Koney said that the number of arrivals was rising significantly and that increased air connectivity would have a positive impact on the country's economic development.

"However, we still don't have enough airlines to spread the country's reputation across the globe," he added.

According to the Nepal Tourism Board (NTB), the number of tourists visiting Nepal via air in October 2009 increased by 10.8 percent. The statistics of the NTB shows that 56,009 tourists arrived in Nepal this October compared to 50,567 during the same period last year.

Air tourist arrivals in 2008 numbered 374,661, up from 360,708 in 2007.

Political commitment positive for investment: Thapa

By Sangam Prasain
Kathmandu, Oct 22,2009

Green lights are on for the investment and political commitment is positive to expedite the country’s development, said Ishwor B. Thapa a Non-Resident Nepalese (NRN).
Talking to The Rising Nepal, Thapa, a Japan-based NRN, who is willing to invest in Nepal, said that investment congenial environment was getting momentum in the post-conflict period in the country, but the lack of security to investment and lingering doubt on the success of the peace process have held back the country’s full potential.
Thapa is the president of Thapa Incorporation at Koenjiminami Suginami-Ku, Tokyo. He said that Japanese investors were willing to make a huge investment in the tourism and hydropower sectors on long term basis provided their investments were secured.
Thapa who hails from Gorkha is living in Japan for the last 20 years. He owns two restaurants -- Khana Koenji and Khana Wasada, and three handicraft outlets -- Potala Handicraft, Sitaram Handicraft and Thapa Incorporation in Japan and is the owner of Kalika Exports House, the manufacturer, whole seller and exporter of cotton garments and hand knit woolen goods at Samakhushi, Kathmandu.
He has been recently awarded the prestigious ‘Yeso Yo’ business award by the Japan Chambers of Commerce and Industries.
"Nepal is one of the favourite countries of Japanese. So, they are interested for a good deal of investment here," he said.
According to him, he is only a member of New Leaders Business Club, Tokya, a club promoted by over 200 businessmen. "The club members are interested to invest over US$10 billion in Nepal’s different projects.
However, they are afraid of the investment security as the media reports about Nepal was negative in Japan, he added.
He also said that the arrival of Japanese visitors to Nepal had significantly dropped compared to previous years after Nepal Airlines stopped its flights to Japan. NA is the only airlines that connect Nepal with Japan.
"The Nepal Tourism Year 2011 is approaching near, but the government is still undecided over the air link between the two countries. This can hamper the tourist flow from Japan," he added.
"We are organizing Nepal Day Festival in June next year as a part to promote NTY2011 and disseminate the Visit Year widely," he said.
Talking about the export potential of Nepal to Japan, he pointed out that the handicraft products were largely popular in the country and if Nepal could deliver these items in Japan, it could play a significant role in the country’s economic development and reduce the wide trade deficit that Nepal had been going through for the last couple of years.
He said that promoting the one-village-one-product (o-v-o-p) concept could benefit the countries economic development as concept was successful in leading Japan’s economy towards high growth.

Community forest helps to boost family income

Sangam Prasain
Nawalparasi, Nov.23,2008:
Nisha Pandey of Sukhani Makar village has three children, five cows, seven goats and some chickens to look after and she does her job well.
Pandey, 28, remained idle until she involved herself in community forestry. "I used to help my husband in the farm," she says, "and look after the kids."
The Pandey family hardly earned enough from the farm to pay the fees for their children. Now things have changed.
The husband continues to till the farm and Pandey generates her own income to support the family.
"I now earn up to Rs.12, 000 a month by selling 30 liters milk per day," she says. "I have been making some money by selling milk and meat."
Pandey first started rearing a cow by borrowing Rs.30, 000 from micro financing institution, thereafter, she became a member of community forestry in Kamadhenu Cattle Resource Development Group at Makar.
"Community managed foraged land has given opportunities to us to increase our income that were initially very low."
Parwati Bhattarai, another community forests users said that livestock and animal husbandry had become an important source of income and employment in Makar village.
Under the third livestock development project of Asian Development Bank with the government, NGOs and community group she started cattle rearing taking loans. She now owns four cows and 11 goats, which give her adequate income to assist her husband’s income.
Surya Bahadur Singh, community animal consultant of Kawasati VDC, said that such community-based programme would contribute to household income.
"Animal husbandry and livestock is playing a major role in providing employment, especially self employment with high participation of women," he said.
He informed that the Shiva Community Forest at Kawasati VDC of Nawalparasi was benefiting the locals with 35 hectares of land for grass cultivation, which was benefiting more than 400 houses.
"CLDP is working with Sujal Dairy Pokhara and Dairy Development Corporation in order to promote micro dairy and community livestock providing technical support and know-how to the community."
Om Prasad Chapagain, a farmer said that he started rearing two cows and now he had 10 of them from which he produces 50-60 liter milk once a day. "I have also started grass cultivation in two Bigahas of land."
Devendra Lamichanne, farmer of Divyapuri-6 Nawalparasi said that through the loans provided by the rural micro financing programme, he was starting fattening buffalo calf. He said adding that if he succeeded in his plan he would establish gene conservation and animal cross-center also.
He informed that the purpose of fattening buffalo calf was to meet the meat deficit, mostly in the capital city.
Under the follow-on of the third livestock development project of Asian Development Bank with the government, NGOs, private sector and community group, ADB approved US$20 million in December 2003 with the closing date of 2010. The investment of the government and private sector to this project is US$11 million.
The project objective is to reduce poverty in the rural areas by improving nutrition, income and employment opportunities for farmers and resource-poor people, especially women by increasing livestock productivity in an ecologically sustainable and equitable manner.
The scope of the project is to raise livestock productivity, promote alternative markets for livestock inputs and outputs and to develop institutional capacity of the government, NGOs, private sector and community group for self-sustainable livestock sub-sector development in a process-oriented and coordinated manners.

Ground water irrigation boon to Chitwan farmers
By Sangam Prasain

Chitwan, Nov.22,2008;
Ground water appears a boon to Chitwan farmers when it comes to irrigating their fields. A new scheme, called Community Groundwater Irrigation Sector Project (CGISP), is becoming popular among local farmers in 19 Chitwan villages, where farmers earlier relied on other sources of water.
CGISP is providing a sense of ownership and ability to the farmers, who are expecting a higher productivity in their agricultural sector compared to their earlier production, which depended on farmer-managed irrigation.
Chet Bahadur Neupane, a farmer from Jagatpur-7, Chitwan said that CGISP had become a boon to him as he had witnessed a tremendous increase in his vegetables and grains productions.
He said he was in a big dilemma before as to whether his small unproductive land was too big a burden to eke out the livelihoods for his 9-family members. "We had to either wait for Narayani irrigation or Khagari irrigation project, which only occasionally become operational, for water or we waited for the rainfall," he said. "Now I use ground water."
Neupane said, " I am making a net income of Rs.50, 000 per Kattha annually." He produces cauliflower, pumpkins, tomato, and cucumber twice a year as seasonal crops, including other grains items in between.
Kanchha Malla, another farmer, said that despite having 16-family members, he was comfortably feeding them. "After the CGISP came to our village our crop productivity has immensely increased," he said.
He said that he owns a five Bigaha land and earns Rs. 300,000 profits annually through cultivating seasonal vegetables and grains. "Earlier we used to consider our land as a barren land but CGISP has provided us a possibility for commercial farming," he added.
Apart from males, who are continuing to migrate out of rural areas in search of more lucrative employment, women are making a substantial contribution in agriculture thanks to the new irrigation scheme.
Sita KC, a member of Patyani Water Users Committee of Sivanagar, Chitwan said that the demand for labor in the agricultural sector was increasing and it was becoming common to see women assisting their male counterparts in this village in the farms. This was improving chances for women to make gainful employment rather than sitting idle at homes.
She said that CGISP provided Rs. 67,500 loans to each family for irrigation purpose, which had increased the crop productivity, but still procedural framework for modernizing numerous farmers with the know-how and technical assistantship both from the donors and the government was lacking.
The project has been operated in 18 VDCs of Chitwan. It has been benefiting 2,780 houses covering 503 Bighha land installing 614 boring and 388 motors for the ground water irrigation.
However, some Water Users Committee claimed that a number of farmers were unaware of the project when it started, and the project did not transfer the skills necessary to maintain new structures or enable the farmers in regard to commercial farming system.
They said that still there was a need to encourage the farmers by increasing the loan amounts and subsidizing the existing interest rate, which was high in the rural contexts.
They said that adequate time should be given to the real users to learn about the programmes, to become familiar with the objectives and the conditions of support of their systems.
Ram Krishna Pandey, secretary of Sivanagar Village Deveopment Committee at Chitwan, said that there were two irrigation projects installed to irrigate large land portion in Chitwan district but they were not operating properly and large swathes of farmlands were deprived of the facilities.
He said that at a time when government had given adequate emphasis to commercial agricultural, such irrigation projects would be vital in boosting the farmers and improving productivity of land.
CGISP was approved by Asian Development Bank (ADB) in 1998 with the objective to increase agricultural productivity and incomes of farmers through participatory and integrated group shallow tube-wells and developing capacity of water users’ group and water users’ association.
The project completed on 31 July 2007. The total loan amount was US$10.16 million.
अन्य शीर्षक

Oil pipeline project to gain momentum
By Sangam Prasain

Kathmandu, September 27,2008:
Nepal-India oil pipeline project, which was mooted four years ago, is expected to gain momentum if Nepal government released funds to Indian Oil Corporation to prepare a Detail Project Report (DPR) of the scheme.
"The project which will reduce oil transportation cost to Nepal by as much as 50 per cent has been left in limbo due to a confusion on who will push the project ahead," said engineer Suresh Kumar Agrawal, Director of Engineering and Project Department at Nepal Oil Corporation (NOC).
The project will take a maximum of 18 months for the construction with a total estimated outlay of Rs.1.6 billion. The estimated payback period is seven years if the government starts the project on its own expenditures, he said.
"The project plans are at a preliminary stage without a concrete decision and the government of Nepal have to come up with a decision either requesting Indian Oil Corporation (IOC) for full investment or carry out the project on its own," he said.
He noted that IOC was waiting for a green signal from the government of Nepal to carry out the DPR of the project. The IOC has demanded Rs.5 million to conduct the initial survey and prepare a report.
He said that the project proposes to link an IOC facility from Raxaul with NOC’s main terminal 40 km away at Amalekhgunj. He pointed out that more than 200 oil tankers moblised to import oil to Nepal were causing congestion at the border. "With the completion of the project, Nepal will benefit in terms of environment, finance and time," he said.
He said that a Memorandum of Understanding (MoU) was signed between the NOC and IOC four years back for a joint venture. There was an understanding that Nepal would foot 60 per cent cost and India the rest but the a formal agreement remained pending, and NOC decided to commence the project itself.
However, ‘Live Mint’, an Indian online news agency, quotes S. V. Narasimhan, Indian Oil director of finance that the Indian Oil, India’s top refiner has decided to give a push to the project as a confidence-building measure. "Indian Oil will invest in setting up the pipeline. The plans are at a preliminary stage."
Agrawal, responding to a question regarding Indian Oil investment in the project, said that it was still not fixed who would invest in the project. "The oil pipeline project will be started this year if the government of Nepal gives a green signal for the project survey, but still there is confusion about the investment," he added.
Another official, asking not to be named, informed that the project had been sidelined as a train-link between the two country came up as an alternative. But Prime Minister Prachanda’s recent visit to India has pushed for expediting the pipeline project.
He said that Nepal and India being close neighbours, if the government of Nepal formally requested the IOC to implement the project it would start any time.
Nepal has an annual demand of 580,518 million tons of petroleum products. It is incurring monthly loses of Rs.760 millions and NOC’s dues to IOC amount to Rs. 850 million.

A Look At The Banking Sector Business
sangam prasain

The growth of the banking industry in Nepal has much significance for the other sectors in the country. Despite a decade long conflict, the banking and financial sector accomplished impressive returns both in terms of business transactions and size of assets and market.
During the last two decades, the number of banking and financial institutions has grown significantly.
The Nepal Rastra Bank (NRB), the central bank of Nepal, report states that there are altogether 235 banks and financial institutions currently operating in Nepal. Of those, 23 are ‘A’ category commercial banks, 58 ‘B’ class development banks, 79 ‘C’ class finance companies, 12 ‘D’ class micro credit development banks, 16 saving and credit co-operatives and 47 NGOs.
Banking sector, being the largest financial sector, alone holds more than 80 per cent of the total liabilities of the financial system. As of mid-Jan 2008, commercial banks alone occupied 82.11 per cent shares, the finance companies with 10.52 per cent, development banks 4.72 per cent, micro credit development bank 1.77 per cent and others 0.88 per cent shares.
The banking and financial institutions ballooned in the Nepalese economy after the economic liberalization policy in Nepal initiated during the mid-1980s. From that period on the banking and financial sector recorded rapid growth.
Historically, the first conventional bank in Nepal was Nepal Bank Limited established in 1937 A.D., followed by Rastriya Banijya Bank in 1966. These two banks were the pioneers of the Nepalese banking industry and only the players in the banking industry.
During this period the financial market was barred for private investors but after mid- 1980s, the economic liberalisation provided extensive opportunities to the private investors, as a result the country witnessed the grand leap of the banking and financial institutions.
The number of commercial bank branches currently operating in the country has reached 574. Of the total banking branches, more than 46.34 per cent (266) bank branches are allocated in the central region. There are 122, 117, 38 and 31 bank branches currently operating in the eastern, western, mid-western and far-western regions respectively.
The total source of the funds in the commercial banks increased by 14.18 per cent as of mid-January 2008 with a total Rs. 557,142. 3 million.
Similarly, the deposit mobilisation of the commercial banks increased by 11.12 per cent compared to 6.73 per cent growth in the same period last year. It reached Rs.375,035.7 million from Rs.337497.2 last year. On an average 10.98 per cent annual growth rate was observed during the six year period from 2001 till 2007.
During the first six month of 2007/08, the current, savings and fixed deposit were accelerated by a high rate of 13 per cent, 10.21 per cent and 6.63 per cent compared to 6.30, 6.59 and 6.55 respectively during the same period last year.
Loan and Advances, the major component of uses of fund, constituted 48.86 per cent. The investment and liquid funds registered at 18.10 per cent and 8.12 per cent. This component was registered to 46.66 and 8.98 percent respectively last year. in the first six month of the current fiscal year. The net profit of the commercial banks increased by 24.43 per cent. The banks earned Rs.4225.6 million during this period.
Similarly, as for the development banks, the assets of the development bank in the first six month of 2007/08 increased by 41.49 per cent as against the 62.30 percent decline in the corresponding period last year.
Of the liabilities, deposit constituted the highest share of 67.35 per cent followed by capital fund 17 per cent and borrowing 8.54 per cent in mid-January. In the current fiscal year, the capital fund, borrowing and deposit of the development banks, increased by 34.23 per cent, 22.69 per cent and 40.48 per cent respectively.
Likewise, the performance of finance companies was impressive in the first six months of the current fiscal year. The total assets of the finance companies increased by 33.48 per cent and reached Rs. 71365.76 million from Rs. 534,66.3 million last year.
Of the total liabilities, borrowing of the finance companies increased significantly by 162.93 per cent and reached Rs. 9122.57 million from 3469.54 million. The total deposit increased by 18.46 per cent in the same period. In mid-January 2008, the total deposit reached to 40884.67 million from Rs.3469.54 million last year. The capital fund grew by mere 4.25 per cent in the first six month of the current fiscal year and reached to Rs. 5608.37 million from Rs.5379.8 million last year.
In the micro credit development banks, the total assets of the micro credits increased by 16.70 per cent and reached to Rs.11998.94 million from rs.10281 million in mid July 2007. Similarly, the rural development banks involved with the micro credit activities rendered satisfactory. During the first six month of 2007/08 deposit and borrowings increased by 4.35 and 5.64 per cent respectively, while the capital fund decreased by 10.61 per cent. Capital fund, borrowings and deposit accounted to Rs.302.5 million, 2901.5 million and 547.1 million respectively. Likewise the liquid funds, investment and loans and advances stood at Rs.194 million Rs.1595.9 million and Rs.1845.6 million respectively.
In the cooperatives and NGOs, the capital fund increased by 5.50 per cent compared to 6.51 per cent in the previous year. The total deposit grew by slower rate of 4.45 per cent as against the 14.35 per cent growth in the preceding year. By the end of the mid January 2008, it reached Rs.2658 million.
The loans and advances increased by 9.13 per cent and reached to Rs.2433.58 million from Rs.2229.81 million against the previous year. Similarly, liquid fund and investment increased by 26.55 per cent and 12.91 per cent in the same period last year, by the end of mid January 2008 liquid fund and investment reached to Rs.619.75 million and Rs.200.65 million respectively.

Be Positive
Sangam Prasain

Do you feel irri tated at your bosses, parents or colleagues who always blame you for not toeing their ideas? Are they constantly pointing at your failure in pursuing a new course of action? Are you one among those who look for a reason as to why something cannot be done?
Do not worry! You are welcome to join an imaginative world with negative rules to find a solution to your problems. It is a common place where statements like ‘sorry’, ‘do not disturb,’ ‘try hard,’ ‘this is too much,’ ‘this will not work,’ and ‘there is no budget for it’ are common.
You do not have to speak here. All you do is roll your eyes and cross your fingers, and the writer in the imaginative land will write down your expression and give you the needed advice.
You can start to turn things around by understanding that the language of ‘no’ is often based on the fear of change, speaking up, taking risks and losing one’s job. There is also an ego problem, when your bosses, parents or colleagues do not want to support your ideas or they simply snarl at you when the status quo is perceived as requiring less effort.
These might be the reasons for negativity, but are there ways to turn the ‘no’ situation to a ‘yes’ one?
Sell the problem before the solution. The writer tells you, "By collecting the facts and proposing an idea that will address these downsides."
Promote the pluses by carefully outlining how your ideas will benefit the organisation. Use simple, non-technical language and smile when presenting the information, as advised by the writer. Most important, solicit the thoughts and opinions of others and ask for feedback when presenting an idea.
"Look for opportunities to involve colleagues in brainstorming, planning and implementation. Do your assignment and present well-formed ideas, and make sure that you give enough room to others to participate and develop some sense of co-ownership."
If you do not have enough credibility with the organisation due to your position and experience, think about finding a mentor or someone to convey or sponsor your idea.
If an idea similar to yours has failed in the past or has never been tried, then tackle it again by trying to understand why it failed in the past.
Negative encounters teach us many things, such as where other people’s boundaries are, how to be more persuasive, even where our own blind sports are. No one can help us to see other people’s point of view more clearly. They may even show ways to become more creative. It is much better if we take the ‘No’ as a personal challenge rather than as a rejection.
Here are some ways to ensure that you do not contribute to the world of ‘no’. Ultimately look for the things you like at home, work place and elsewhere.
Do not say, "Yes." Instead, say, "Yes, and here’s how I can help make that better." When you feel the urge to say no, think about your motives and share your concerns. Remember that it takes courage to say ‘yes’ and appreciate the people who are positive towards their motives.

Energy crisis hits economic activities

By Sangam Prasain
Kathmandu, Dec. 30, 2008:
The energy-crisis is starting to have all-round impact on the industrial, social and economic sectors of Nepal. Almost everyone from common consumers to business entrepreneurs has been witnessing the cascading impacts of power cuts.The load shedding schedule experienced in rolling blackouts across Nepal have been directly and indirectly impacting the value of production and resulting in increasing cost of every thing.
Business entrepreneurs and experts have widely accepted that the prolonging load shedding problem can further worsen the business and organizational firms forcing them to close down.
Industrial Sector
Among the worst sufferers include the industries and businesses. From manufacturing to service industries, all have been subject to swelling hours of power cuts.
Kush Kumar Joshi, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), an umbrella organization of private sector, said that the 13-hour a day load shedding has decreased the industrial production to almost nil.
He pointed out that business entrepreneurs could not operate their industries using diesel plant, due to this problem export sector has become fragile.
He said that recently the country’s revenue was generated through import, under imposing burden of taxes, which could hamper the industrial growth. "If there is no industrial growth, the solution to unemployment and rapid economic development will be a fry cry," he said.
Government should immediately bring additional power and address the increasing labor disputes to improve the economic situation in the wake of this recent crisis, he added.
Communication Sector
A leading communication sector, Nepal Telecom, is widely suffering due to the load shedding. Due to this problem the quality of the mobile communication and network exchange system are disrupted, causing the costs to climb up.
Kanhaiya Lal Gupta, Deputy Managing Director at NTC, Telephone Exchange, Engineering Department, said that backup power was available in the exchange department for just 12 hours.
He said that Tele-exchange being a sensitive system operation and the backbone of network and communication had to operate at any cost. Exchange system will never be closed, he said.
He said that in the RS4 exchange system covering 2000 and 2500 exchange there was a battery with backup capacity of six hours in each system. There are two generators for ‘5000 exchange’ system, which makes the system fully ensured during the load shedding.
Jeevan Ratna Shakya, General Manager at BTS system, NTC, however, said that due to the long hours of power outages there was no time to charge the backup system. He said that 15 to 20 BTS towers were daily affected, which was making the mobile network error-prone.
He said that the mobile operation in different parts of Nepal was disrupted and the network quality worsened. "We are planning to operate generators and more backup systems in the high traffic areas to smoothly operate mobile network system.
He said that the increment in the operation cost was automatic, due to the backup system costs.
Satish Rajbhandari, Area Supervisor of Worldlink Communication Private Limited, said that Worldlink was bearing additional costs of 30 to 50 per cent due to the load shedding. He said that his organization had a backup support for 2 to 3 hours and they operate the remaining hours through generators.
He said that the number of customers or users had declined by 50 per cent after the load shedding hours prolonged.
Banking Sector
The load shedding regime has triggered impacts on banking sector sending the operating cost of a bank soaring to above Rs.10 million yearly.
Suman Neupane, General Manager of Sunrise Bank Limited, said that banks are compelled to operate their transactions with the help of power generators, which increases the costs.
He said that the bank’s interest rate varies by 0.5 per cent every month while using the diesel and other backup systems. Hesaid that the ATM counters are also affected by load shedding as they are closed when the batteries run out of charge.
Social Sector
The load shedding has affected social security giving some opportunists a chance to take advantages of the blackouts in the society.
Manju Bhakta, a shop owner at Bhaktapur district, charged that blackouts increased theft and robbery. She said that in the past year her shop used to be open till late hours but load shedding compelled her to close her shutter soon.
"We fear robbery, besides the business has dropped down as we have to close shop in the blackouts," she said.
Binod Singh, Deputy Inspector General (DIG) of Nepal Police and Spokesperson, however, claimed that crime in the capital city was as earlier. Due to the bolstered security the miscreants are not finding opportunities to execute their notorious plans.
He said that the police administration had increased patrolling to control crimes during the evening and midnight hours. He said that one cop was providing 14-16 hours of service on an average daily. Earlier they used to be deputed for 10 hours a day. "We are facing a problem with the manpower to bolster security in this difficult situation," he said.

Revenue collection shoots up

Sangam Prasain
Kathmandu, Aug. 24
In the first month of the current fiscal year 2066/067 the government revenue stood at Rs. 11.74 billion as against Rs.7.72 billion mobilised in the same period last year.
This is an increase by 52.2 per cent. Of the targeted Rs.9.78 billion, the collection exceeded by Rs. 4.02 billion, Revenue Secretary, Krishna Hari Baskota told The Rising Nepal.
According to Baskota, impressive revenue accumulation has been attributed to the improvement in the tax reform measures, leakage control and industrial and trade conducive environment.
Similarly, the positive response from the businessmen and traders towards the government tax policy and change in the attitude of employees working in the revenue departments and offices has been credited with the encouraging revenue growth, he added.
In the recent budget speech, Finance Minister Surendra Pandey, under the 22-party coalition government, proposed budget estimates of Rs. 285 billion 930 million for the fiscal year 2066/067 to implement the programme and policy of Nepal.
Out of the estimated sources of financing, Rs. 176.50 billion has been targeted to be borne from the revenue mobilisation.
Prior to the current budget, Maoist led government under the Finance Minister Dr. Baburam Bhattarai presented Rs. 236.15 billion budget for the fiscal year 2065/66, which was considered to be ambitious.
Of the total budget expenditures, the budget had set a challenging revenue target of over Rs. 140 billion, almost 31 percent higher than the previous year. However, the Voluntarily Disclosure of Income Sources (VDIS) scheme and reform in the tax administration system remained productive to meet the envisaged target.
"Following the impressive gain in the starting month, we are confident to meet the target of Rs. 176.50 billion as set by the government for this fiscal year," Baskota added.
According to him, the government has set a target to collect Rs. 19.03 billion in the month of Bhadra, Rs. 28.26 billion in Ashwin, Rs. 41.33 billion in Kartik, Rs. 54.86 billion in Mangsir and Rs.74.97 billion in the month of Poush.
Similarly, the target for the month of Magh is Rs.90.40 billion; Rs. 105.17 billion will be borne in the month of Falgun, Rs.122.81 billion in Chaitra, Rs. 137.35 billion in Baishak, Rs. 150.83 billion in Jestha and Rs.176.50 billion in the closing month.
"Morning shows the day," Baskota said, expressing the confidence that the trend of the first month of the current fiscal year would continue. "Revenue will exceed its target," he added.

Highly Analytical
Sangam Prasain

The book under review reflects Krishna Hari Banskota’s decade-long contributions to the country financial and administrative sectors.
As a reformist among civil servants of Nepal, the writer has given a glimpse of the country’s civil service sector and various challenges associated with it.
Being a dedicated civil servant, the author has offered a conceptual orientation to policymakers, planners, and politicians that the otherwise customary administrative system in Nepal could change for the better. But this requires a lot of zeal and enlightened thoughts.
Penned as a ‘compilation or collective work’, the book features a number of contributions of the writer. He has tried to inject a new lease of life to the traditional Nepalese bureaucratic system. The work constitutes a separate and independent thinking of a government official, who is fully dedicated to his duties and responsibilities.
The research-oriented book depicts the writer’s quests and specializations and media observation on him. It shows his untiring efforts to make reforms in the country’s civil service.
His endeavours towards modernising the lifeless government departments and offices have proved that nothing is impossible.
His inquiry into the impact of the country’s good governance, operational of financial health, local bodies, customs, tax reforms and the role of promoting strategic management deserve appreciation.
As a popular saying goes: where there is a will, there is a way, one after reading the book may conclude that the very adage is applied to him.
Appreciating his works, erstwhile Finance Minister Dr. Baburam Bhattarai has commented, "He (Baskota) always tried to tailor them to those to whom he spoke, promoting so far as possible the revolutionary consciousness and socialist instincts of his colleagues. That is yet another reason without even mentioning why it has been hard to delineate the writer as a reformist."
Baskota’s Economic Development: Thought and Analysis is much more based on national economics that lends a more contemporary flavour to local economic development.
Indeed, it adds brief treatments of the following topics: challenges and possibilities of nation’s development, local public finance, and planning perspectives, reformist personalities, country’s budget and challenges, customs services, love affairs, honors among others.
The subject matter of the book is divided into three chapters. The book is endowed with 14 sections in the first chapter, which incorporates the writer’s views and reviews published in the local newspapers on his working experience and honors he deserved from his extreme toil to uplift any government departments and offices.
The book starts with a sketch of his endeavours to reform the Department of Commerce, under the Ministry of Industry, Commerce and Supplies as mentioned by a local newspaper. The honor of his service and his great dedication towards the department assumes his efficiency to improve administration in rapid development giving it a new lease of life.
Similarly, acknowledging his reforms oriented style in different challenging departments gives him a complete credit that any hypothesis rooted on ‘Nepalese administration is impossible to reform’ can be completely removed. Loyalty and dedication are the words that could be coined as part of his life, a newspaper admires his work.
The other part of the chapters incorporates his success story that edifies some critical economic principles on the customs reforms measures. His leadership in the department has enhanced the organizational performance by building image and increasing revenue collection. His result oriented work in the customs department has been well admired. He deserves the service honor.
The second chapter broadly presents the theoretical foundations of good governance and its challenges and opportunities in the context of Nepal. This chapter deals with the fundamental bases of good governance in respect to the political, management and ethical values.
Statistical concepts and techniques, development of models, region-wise balanced growth, role of administration in rapid development, strategies for optimal utilization of scarce resources, uncertainty and decision making, finance and national income etc are well defined in this chapter.
The authors have presented 29 sections, literature in this chapter, which provide the guidelines to the planners.
The third chapter deals with his published interviews. It has 37 sections giving a multiple glimpse that immediately hits core material to local political economics, business development, and regional input-output analysis. The writer has designed the chapter that encompasses discusses of region importance-strength analysis, a critical component of industry, transparency measures, budget targets and his working experiences with some genuine economic players and ministers.
Most of the chapter is appropriately devoted to explaining such notions as ‘improving tax administration’, ‘political climate’, ‘business climate’, ‘budget and gender issue’, ‘budget allocation’, ‘pro-public budget initiative’, ‘governments effectiveness’, ‘budget target’ among other characteristics as an ideal and pragmatic application through the interview.
This interview section is almost strictly a lesson on public taxation and the allocation of government budget, and less on ways in which the government can induce local economic development.
This book attempts to meet the professional, administrative and academic needs, and develop the competence of the new and experienced officers, and other executives of the Government departments, public sector undertakings etc., by presenting the various topics in a proper order.
It offers a number of formulas, examples, models, their analysis and references, along with a proper treatment of the subject. Thus, the book can be viewed through an analytical approach that could benefit the organizations, planners, politicians and the students as well.

‘Budget should be practical, target oriented’
By Sangam Prasain

The count down for Nepalese budget for the fiscal year 2066/67 has begun. The 22-party interim coalition government is going to present the budget under the CPN-UML leadership in the second week of July 2009.
Nepalese Government has planned to achieve rapid economic growth by increasing agriculture activity putting a full emphasis to the business and economic sector and ensuring a business-investment friendly atmospheres to the private sector.
However, there are various hitches and obstacles hindering to speed up the economic growth, generating employment opportunities and improving the living standards of the Nepalese people.
At the crucial time, when Nepal’s Gross Domestic Product (GDP) growth rate is sliding downwards and the country is facing extreme power shortage, wide trade deficits, insecurity and many emerging problems the business community have come up with a common consensus that the government should focus on arresting further economic deceleration and offer favorable fiscal and monetary policy to revitalise and confidence build up of the private sector.
Corresponding with The Rising Nepal three private sector heads, Kush Kumar Joshi, president of Federation of Nepalese Chamber of Commerce and Industry (FNCCI), an umbrella organisation of the business communities along with Surendra Bir Malakar, president of Nepal Chamber of Commerce (NCC), Binod Chaudhary, president of Confederation of Nepalese Industries (CNI) voiced for improving investment climate, security situation, rule of law, good governance, ending bureaucratic hassles and providing relief and concessions in the duty structures for the reconstruction of Nepalese economy. Excerpts

The government is in the process of announcing a new budget. What are the expectations of the private sector?
Joshi: Private sector these days are seriously unsecured due to the political instability, which really encouraging the culture of strikes, the mass effect of this culture is making people completely unproductive and country is heading towards negative GDP growth rate. On top of that energy crisis, labour unrest are adding to negative growth. The government should focus on arresting further economic deceleration and offer favorable fiscal and monetary policy to revitalise and confidence build up of the private sector.
Coming budget should focus on improving investment climate in the country. Commitment for improving security situation, rule of law, good governance and bureaucratic hassles are the issue of high priority of private sector at the moment. Promulgation of new Industrial Policy, Foreign investment promotion policy, Commercial policy and Labour policy compatible with the regional and WTO agreement need to be addressed as soon as possible including the corresponding Act and rules.

Malakar: Nepal Chamber of Commerce expects the budget to be more practical and target oriented. We hope that the budget will incorporate more long-term projects and programmes which have lasting positive effect in economy rather than short-term benefits. Similarly, we believe this budget will focus on the development of rural areas and rural economy thereafter focusing on the creation of employment by private sector/industrial development so that younger generation does not have to migrate for better job opportunity.
Peace is requisite for economic development. Without sustainable peace, no business can flourish and without business, economic development is a distant dream.
The government has shown positive reaction to abolish the syndicate system and scrap ‘scrap tax’. So, we believe that this budget will finally announce the abolishment of these two systems and tax and provide relief to the citizens from spiraling prices and hindrances of supply of necessary commodities.

Chaudhary: In order to achieve a high growth rate we need external investments and our key sectors must perform well. Therefore, we expect the budget to facilitate the establishment of an investment friendly climate and focus on making the manufacturing, export, tourism, forest and agro based industry; hydropower, mines and mineral based industry sectors more vibrant.

Do you think that the upcoming budget will give priority to industrial and infrastructure development?
Joshi: We have been advocating higher public capital expenditure in developing basic infrastructure which facilitates development and investment climate in the country.
We have also greatly suffered from poor infrastructure in roads, airports, energy and irrigation. We are facing 16 hours load shedding a day, and we will face the same situation after the rainy season.
Industrial development is primarily concerned with employment opportunity, economic growth, and economic activities. At present, general export is declining, industries are closing down and real estate sector is in very critical condition. Thus, upcoming budget should give special focus to industrial sector’s rehabilitation and refurbishment by providing special package.

Malakar: Well, it has to. If the government wants the economic revolution in the country, then it should give priority to industrial and infrastructure development. And, we believe that the government will give its priority. In many fora and discussions, the government has expressed their commitments to work with the private sector in economic development, and we believe that government will stand on their vows and words.

Chaudhary: Keeping in mind the fact that creation of jobs on a large scale should be our priority and these are the sectors that can create more jobs. I am sure that these sectors will receive priority.

The business community has recommended for a multiple VAT system. How will this VAT system be more effective for the government to generate more revenues?
Joshi: Different surveys have indicated more than 50 per cent illegal trade is taking in the country mainly due to open border with India which causes loss in revenue not only in VAT but also in custom duty, excise, and income taxes. This situation has been encouraging unauthorised practices and discouraged healthy trade.

India imposes 4 per cent VAT in some items and Nepal imposing 13 VAT in the same items, has also encouraged unauthorised trade with India. There are also many items in Nepal which are exempted from VAT, therefore we recommended Multiple VAT system to bring equal level of playing field so that healthy tax system shall prevail. Our study and analysis shows that the multiple VAT system will result in increased revenue to the government.

Malakar: The flat VAT system has not been that much effective and has become one of the most contentious taxes in Nepal. Hence, the private sector has lobbied for the implementation of multiple VAT rates, so that it becomes the sole source of revenue and generates more revenue for the government.
Due to major complications in this flat VAT system, private sectors are not able to provide VAT invoices during each transaction. We believe, after the simplification in the VAT system and implementation of multiple VAT rates of 0, 1, 4 and 13, it would be much easier to issue invoices and the issuance of VAT invoices will also rise in numbers.

Chaudhary: The multiple VAT system will increase tax compliance and discourage informal trade which will ultimately result in greater revenue earnings for the Government in the long run. For the private sector, it will mean that their products will be a little bit more cost competitive.

It is said that economic scenario of Nepal has improved at the present. What is your view on this? Do you see any important role of the private sector in such an achievement?
Joshi: We have been hearing the revenue target have been achieved but other economic indicators are not in satisfactory situation. Till this date, government is not in a position to spend more than 33 per cent of total capital expenditure.
There is less than one percent inflation rate in India but in Nepal it is in two digits. Export is declining, real estate sector performance is going down, and no improvement in investment, economic activities and economic growth is seen. Private sector has been very worried and eager to improve the current meltdown situation. To improve the current scenario only private sector can not cope, hence, government should step in to act in a timely manner to reduce power crises, labour unrest and should facilitate and provide measures to create confidence in the private sector.

Malakar: I don’t think the overall economic scenario has improved in Nepal. Yes, certain aspects of the economy have certainly improved. In this regard, we can take the example of revenue collection. In the last nine months of this fiscal year the revenue collection increased by 39.3 per cent from the last year’s 25.1 per cent. Similarly, the export has also increased.
But what we have forgotten is that the business environment has been deteriorating every seconds and the confidence of business has been decreasing day by day. Whenever you leaf through the daily papers you will find the news of extortion, kidnappings, and attacks on the private sector as well as news of chakka jams, bandas and strikes. In this background, how can one say that the economic scenario has improved in Nepal?
Just recently, we heard that the rate of capital flight has increased by many fold and the amount of deposit in the international bank by Nepalese people has also increased. If, the economic scenario has been sound enough in Nepal, then how can more and more people deposit their wealth in other countries? Is this the sign of economic improvement?
Similarly, you can judge the economic condition of the country by the number of oversubscriptions that the IPOs have received. In every IPOs, there is always an oversubscription of more than 8-10 times. This shows that there is no investment environment in Nepal and that’s why people prefer low risk, low return investment.

Chaudhary: The increase in revenue collection, export growth, increase in Foreign Exchange reserves and a healthier Balance of Payment (BoP) are definitely encouraging indicators. The aviation, hospitality and other tourism related sectors are really doing well. We understand the housing sector is booming. The robust health of the banking sector and the increase in Stock Market Capitalisation are also encouraging.
However, equally worrying is the fact that some critical sectors like Carpet, Garment and Pashmina sectors are in bad shape. Due to the energy crisis as well as the regular bandhs, strikes, chakka jams and labour disputes manufacturing sector is not in a good shape as some of the industries are on the verge of closure.
Even during the height conflict period, we had a GDP growth rate of around 3 per cent. It is my belief that the private sector contribution was a major factor for this. Therefore, the role of the private sector will always be important in economic growth and development.

What do you think are the major economic challenges for the government and the private sector in the coming days? How could the Public Private Partnership (PPP) be more effective for higher economic growth?
Joshi: To repeat it again, security situation and absence of rule of law are a major challenge at present. Similarly, low economic activities, phenomenal power crisis, labour unrest, limited infrastructure facilities and investment climate are also major challenges.
Private sector are interested to expand investment in health, education sector and are ready to invest in infrastructure such as hydropower, highways and fast track roads, rope ways, airports. In such a situation, the government should by all means encourage the private sector investment with the PPP models which needs to look upon revision on government policy.

Malakar: The major economic challenges for government and private sector in the coming days will be the political stability in the country. Even though 22 political parties are in the government, the leading and one of the major party, UNCP (Maoist), is still in the opposition bench. Unless the national, consensus and unified government are formed, we doubt there will ever be a political stability in this country.
Similarly, the other economic challenge, I personally feel, is going to be the climate change. We have already faced some of the effects of climate change in agriculture sector and environment. Unless the government of Nepal does some thing to tackle this now, climate change is going to be the major headache for government as well as the private sector.
For a country like Nepal, PPP is the best model for economic growth and infrastructure development. But this model should be used effectively in order to reap more benefits; otherwise it will create lot of problems. I believe that the role and responsibility of both partners should be clearly and articulately defined before implementing it.

Chaudhary: Generating jobs and economic opportunities to meet the enhanced level of expectation of the common man, uplifting the rural economy in order to achieve an inclusive growth, tackling inflation and surging prices of essential commodities, managing fiscal deficits, directing remittances towards the productive sectors, attracting external investments needed to support high growth rate and funding of the much needed large development infrastructure projects.

PPP could be an effective model for growth in Nepal, provided the Government play the role of a facilitator and the private sector take the responsibility of good partnership.

Political transition, insecurity, power crisis and widening trade deficits have been the major obstacles to the business community. In such a situation, what sort of commitment does the business community expect from the government?

Joshi: All political parties should reach common consensus to formulate constitution as soon as possible to transform to a stable state from present lingering transition period and political uncertainty. I am of the opinion that all party should think and give thrust to national issues first rather than to petty issues. In order to reduce power crisis, we have been suggesting to the government to review licensing system, PPA process and provide state of art facilitation and environment to attract foreign investment which is highly needed to implement mega power projects.
On the front of reducing trade deficits, government needs to bring improvement in the indigenous industrial production climate and encourage export oriented and high value adding industries. Mechanism to implement and facilitate the operation of the long talked about Special Economic Zone (SEZ), Export Processing Zone (EPZ) and Private Export Houses (PEH) should be initiated in the upcoming budget.

Malakar: You are very right to note that political transition, insecurity, power crisis and widening trade deficits have been the major obstacles to the business community. And, to tell you, Nepalese private sectors have shown their resilience to work even in the worst situation. So, I think, business community will overcome such obstacles in the future also. But, what we expect from our government is to secure our rights to do business smoothly and in peace of mind.
We want to do business and don’t want to engage our time and mind in labour disputes because of the rigid labour policy; close our business because of some strikes, bandhs and road blockades; and take our investment away from here due to insecurity of ourselves and our investment. So, we expect the government to commit to end all these problems.

Chaudhary: The Government together with all the major political parties should come up with a common economic agenda and all should make a commitment to adhere to it and keep it in the centre stage at all times.

The government should take the initiative to convince all the political Parties to make a commitment to keep politics out of economic activities and the workplace. Government must strictly enforce the rule of law and keep the supply chain free of all obstacles and it should make a commitment to encourage the private sector to take the lead in the areas of economic growth and development.

How could Nepal’s economy be self driven by its own resources? Do you have any suggestions?
Joshi: Due to climatic and geo physical diversities, we are endowed with rich and perennial natural resources. Our serene valleys, mountains, plain areas, rivers, forests, horticulture, livestock and agricultural products command a large spectrum of opportunity and potentiality. Our economic development strategy and industrial sector development paradigm should be charted on the basis of our resources and competitiveness. High value agriculture products, herbal and non-timber forest products, tourism, hydro power generation, service sectors including medical education, hospitals, ICT etc., can be our forte. Consistent policies and longer term perspective should be the guiding road map to focus on development of these Nepalese niche products with competitive advantages.

Malakar: Nepal is very rich in natural resources like water, forests and minerals. But unfortunately, we have not been able to explore the possibilities and get benefit from these resources. Similarly, Nepal is rich in varied bio-diversity and we have deposits of mineral resources that can be economically exploited.
If Nepal wants to drive its economy by its own resources, then we need a long-term vision/programme and the commitment from all factors of the society. The government and the private sector cannot explore the possibilities of these resources on their own. Government and private sector need to work together to reap benefits out of these resources.

Chaudhary: Fully self driven may be a bit too optimistic. However, if we were to develop 10,000 MW hydropower within the next 10 years and develop at least 2,000 MW every year thereafter would be sufficient for driving our domestic economic growth as well as meeting export opportunities.
Similarly, we have to encourage and incentives to cement factories. We have enough Limestone, herbs and medicinal plants, mines and mineral in Nepal to make it self sufficient in cement.
We have to encourage people to utilise unused land for fruit plantations and orchards in the plains as well as mid – hills.

More incidents of bandhs hindering growth

By Sangam Prasain
Kathamndu, July 7
The first three months of this year saw 27 bandhs and chakkajams across the country. If this trend continues, these strikes will outnumber the 48 successive days of bandhs and chakkajams, not counting the sporadic student protests, recorded in Nepal in 2065, according to a report of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
The report stated that out of the 27 instances of closure, Kathmandu Valley witnessed two days of life going out of gear. The valley recorded only three days of bandh.
A large share of credit for such strikes and bandhs goes to political parties. Tharu agitation scored the highest number to their credit by organizing a continuous 11 days of bandh in Terai.
The Unified Communist Party of Nepal-Maoist (UCPN-M) had called for 4 days of strikes. The Maoist’s youth wing, YCL, had a share of a day grinding life to a halt.
Similarly, the business entrepreneurs, community forest users group, Dang, local people at Mahotarri, Jaleshwore and Tikapur FNCCI chapters, entrepreneurs from Jhapa and Dhaulagiri contributed a day each to the total days paralysed.
Transport entrepreneurs of Khotang staged an indefinite strike.
In the preceding year, of the total 48 days of strike, different political parties contributed 10 days. Similarly, there was a single 12-day strike called by the Sunsari and Morang Jute Mill workers followed by 4-day long bandh called by the locals at Udaypur over a murder case.
Likewise, transport, contractors, hotel entrepreneurs and the business community and the students had a share of 15 days.
During this period, the capital city saw three days of bandh. The eastern development region remained closed for five days. The far-western development region was closed for six days, the FNCCI data said.
The report also stated that over 800 industries across the country were closed in the preceding year, which had been directly affected by the frequent strikes and bandhs.
The increasing number of bandhs is sure to badly affect the Nepalese economy.
Talking to The Rising Nepal, Dr. Yubaraj Khatiwada, economist and Vice-Chairman of the Nepal Planning Commission (NPC), said that closures and blockades impacted foreign and private investments.
According to him, the tourism sector would be completely ruined if the trend continued. Bandhs, he said, were behind the unnatural double-digit inflation.
"The industrial and business firms are suffering from a huge loss, the government offices and departments are being unproductive. The daily wage earners were facing difficulties to eke out their livelihood, which is sure to knock people’s income and dampen their confidence, ultimately threatening the economy with a long spell of slump," he added.
He pointed out that everyone is free to organize any type of protest under their rights to freedom but some common minimum agendas should be set to figure out the types and areas of protest.
"The opposition party andthe ruling party must come up with a Common-Minimum-Programme (CMP) to end such a culture that was hindering the development momentum of the nation," he added.
Kush Kumar Joshi, FNCCI’s president, said that those activities were creating a volatile and fluid foreign and domestic investment climate. "Without investment in infrastructure, employment opportunities will be a far cry."
He said that the bandhs and strikes were forcing business community to pay workers without their works. "We are frequently demanding the ‘No Work, No Pay’ procedures that will be, to some extent, relieve the business and the industrial sector," he said.
He said that such initiatives would help mitigate the trend of going to street for protests and strikes.
Raj Kumar Rai, president of All Nepal Free Student Union, Ratna Rajya Laxmi Campus, Kathmandu, admitted that strikes, bandhs and chakkajams had frequently crippled the country for the last couple of years.
He said that the trend of students’ mass protests was invited by the government itself. "If the state shies away from its responsibility to address any issue, there is no alternative left rather than calling strikes and bandhs," he pointed out.
He admitted that such activities could disrupt the country’s economic scenario and adversely affect the social surrounding, including education and employment sectors in the nation. However, the students are compelled to be engaged in such activities. "All this is because of the state’s failure to address right things at a right time," he added.
According to a study conducted by the Asian Development Bank (ADB), Nepal’s industrial growth, decelerated from 3.9 per cent to 1.8 per cent from the impact of power and fuel shortages and labor tensions.
The Manufacturing Production Index (MPI), a measure of manufacturing activity, declined by 1.4 per cent in FY 2008, compared to 2.6 per cent increase in the previous year.

Warming Himalayas putting rural communities under risk

By Sangam Prasain
Kathmandu, Aug. 28
Carbon emission produced by the developed nations has robbed the smile of the Himalayas. Temperature rise in the Himalayan region has brought drastic impacts on crop yields, water shortage and snow melting, pushing rural villagers to the edge of consequences, said an Oxfam report released here Friday.
Nepal is one of the poorest countries in the world, with around 31 per cent of its population of 28 million living below the poverty line. Its diverse topography, fragile eco-system and extreme poverty make it vulnerable to the negative impact of climate change, despite, having one of the lowest emission in the world of 0.025 per cent of the total global Greenhouse Gas Emissions.
Implications of the climate change to the fragile mountain ecosystem, fresh water, and extreme weather events, agriculture, human health and others are taking its toll where the people living in the selected areas are facing serious problems, the report underlines.
The report ‘Even the Himalayas Have Stopped Smiling: Climate Change, Poverty and Adaptation in Nepal’ claimed that changing weather patterns had dramatically affected crop production, leaving them unable to properly feed themselves and getting into debt.
According to the report, currently, more than 3.4 million people in Nepal are estimated to require food assistance attributed to the natural disaster including last year’s drought.
The recent changes in the weather patterns in Nepal are an increase in temperature extremes, more intense rainfall and increased unpredictability in weather patterns including drier winters and delays in the summer monsoons. The melting of the Himalayan glaciers will also be felt well beyond Nepal’s borders, the report claims.
According to the International Center for Integrated Mountain Development (ICIMOD), more than 40 glacier lakes in Nepal are under the risk of eruption due mainly to the ill effects of climate change.
As an under-developed country with less emission rate, Nepal has a good reputation in the Asian region and the rest of the world in terms of carbon. But in the wake of climate change across world, Nepal needs to further raise questions for mitigation and adaptation, the participants here pointed out.
They pointed out their attention towards injustice that Nepalese were suffering as a consequence of a situation that Nepal has least resources and awareness to cope with it.
Simon Lucas, from the DFID Nepal, said that the voice of the Himalayan region should be addressed by the international community, which demands action.
The developed nations should take responsibility for the degradation of the climate in the developing countries and further move on to reduce their emissions with regard to the standards set according to future agreement, he added.
"It is very important that the voice of Himalayan region in the coming Copenhagen global climate treaty by late December will be more reasonable," he added.
Bert Maerten of the Oxfam International urged the developed countries for fair climate treaty. He said that these nations, which are largely responsible for the havoc, should enhance commitments and focus on the bottom-line that ensures substantial financial support for the developing nations.
They should further help in assisting the most impacted countries with possible resources including technological transfer and take proactive measures to adapt and mitigate the climate change.
"Time is running out for the climate deal, commitments of national leaders need to be more proactive and negotiation is really important for such disasters humanity ever face," he added.
More than 190 nations are negotiating a global climate treaty to reduce gas emissions and replace the expiring 1997 Kyoto Protocol limits. Countries plan to wrap up negotiations and sign the new treaty in Copenhagen by late December.
The report calls for immediate short and long term measures that Nepal should adopt.
It has suggested supporting rural livelihood adaptation, incorporation of climate change issues into national level planning, and improve international advocacy as long-term measures.
Similarly, easing food shortage, awareness and institutionalisation of disaster risk reduction have been recommended as short-term measures.

Ex-king Gyanendra willing to pay tax as commoner
By Sangam Prasain

Kathmandu, Aug. 12 - Finance Minister Surendra Pandey on Wednesday disclosed that the former king, Gyanendra Shah was ready to pay property taxes and telephone, water and electricity bills as other Nepalese citizens.
Through his helper, Shah approached the Ministry of Finance to pay the taxes on a regular basis, Pandey informed the journalists.
According to the information provided by the Ministry, former king Shah in his intent letter has requested the government to determine the tariff of 24 telephone lines and electricity and water bills of 10 houses he has been using recently.
Shah also requested the Ministry to determine the land revenue of Nirmal Niwas, Jiwan Kunja and Shova Griha, where his former royal families have been residing.
Pandey informed that the other bungalows and land of the former king are already listed under state property. He said that the Nepal Trust Office, which has been formed to investigate into Shah’s properties, is working on the matter.
According to the Ministry, of the 24 telephone lines used by the former king, seven are in Nirmal Niwas, three in Jiwan Kunja and three in Shova Griha. Similarly, Prerena Shah is using five lines and Dilasa, Sitasma and Shova are using three lines each.
Minister Pandey said that the former king’s assistants have requested the Ministry for discount in income tax as well as concessions in his phone and electricity bills.
He, however, denied the request for the concession and discount in the tax. "We will provide easy facility in regard to the payment of taxes and tariffs," he added.
The deposed king and his families had been brought into the tax net before the democracy movement in 2006. However, there was a controversy between the Government of Nepal and the former king on how much tax to be levied and how much to be paid.
The issue regarding the payment of land revenue and other tariff remained controversial as the Local Development Act that had a provision of no-tax and tariff to the king constitutionally declared to be above law, and the issue came to the purview of the Ministry of Finance.
The case was again closed as the economist at the Ministry defended that the issue did not fall within its jurisprudence. The file was then forwarded back to the Ministry of Local Development.
On the same occasion, Minister Pandey also said that the government would distribute Permanent Account Number (PAN) compulsorily to all the tax payers as announced in the recent budget for the fiscal year 2009/10.
Under this provision, the first PAN numbers will be given to the President and the Prime Minister and other Ministers respectively.

Global Financial Crisis May Result In Fall Of Remittance
Sangam Prasain

Remittance has a crucial role in reducing poverty and sustaining the overall national economy. Keeping this in the mind, the developing world seems to be concentrating its efforts on promoting the foreign employment sector.
Remittance in developing countries is not only the bases to stimulate their economic development but also a sustainable means to improve each household’s conditions.
As far as Nepal is concerned, the remittance contribution to its overall growth momentum rose from Rs.47.5 billion in 2001/02 to Rs.142.7 billion in 2007/08.
Despite the gloomy global economy and growing losses of jobs by Nepalese migrant workers, the total remittance inflows by mid-February in 2009 has crossed Rs.100 billion, which is an increment by 67 per cent compared to the corresponding period last year.
According to Nepal Rastra Bank (NRB), the total volume of remittance inflows during the seven months of the current fiscal year was at Rs.100.7 billion whereas it was Rs.60 billion during the same period last year.
Similarly, the remittances to GDP ratio increased from 10.3 per cent in 2001/02 to 17.4 per cent in 2007/08.
Moreover, the share of remittance inflow through the official channel has increased by 60 per cent from 40 per cent. The date indicates that Nepal was still not touched by the monstrous global economic crisis, which entered from the world’s greatest economic players USA.
Although not yet touched by recession havoc, the Nepalese domestic is compelled with its own woes. The rapid population expansion and inadequate growth in the domestic economy has been compelling thousands of Nepalese to seek alternative at the foreign land.
However, there are different factors compelling Nepalese to travel abroad in search of job further complicating the country’s social and economic future.
At the outset, the decade long conflict was the core compulsion to the people to seek job in the foreign land.
Secondly, the limited arable land is forcing the farmer’s to switch their occupation to other sector and foreign jobs.
In the nonagricultural sector, such as industrial and service sector, the slowdown in growth, especially since 2000/01, due to the internal conflict have further retarded the pace of employment creation. The armed conflict has also created difficult to the people living in the rural areas, which attributed the flow of Nepalese to other job offering destinations.
The number of persons granted institutional permission for foreign employment was 182,043 and 214,094, respectively, in 2005/06 and 2006/07. The major destinations have been Malaysia, followed by Qatar, Saudi Arabia and United Arab Emirates.
According to the Department of Labor and Employment Promotion, the number of workers going abroad for employment has increased by almost 13 per cent in 2007/08 as compared to 2006/07, despite the gloomy world’ economy.
Now, when Nepal has been totally dependent in the remittance economy, the emerging global recession has posed a serious problem to the Nepalese working abroad, which could be a means to disturb the national economy drastically.
The International Monetary Fund (IMF) has said that the current crisis in the global financial markets has witnessed the worst in seven decades pushing financial capitalism of the world into severe turbulent.
This increasing recession is expected to threaten the world’s economy into a major global meltdown dropping the country’s GDP, domestic and foreign investments. There will be a severe impact in the country’s inflation pushing mass people to unemployment.
However, in regard to the Nepalese economy, Nepal has not faced any direct impact, so far, from the global financial crisis because Nepalese financial market is not open to investments from abroad.
Fortunately, Nepal will in one hand benefit from the global economic slowdown because the recession triggered the drastic fall in global oil prices from US$ 149 to below US$ 40 per barrel.
But the unfortunate part will surround in the remittance, according to the experts. Nepalese economist has claimed that Nepal could witness a return of over 300,000 job aspirants working in the foreign land those especially in the Malaysia South Korea and gulf countries.
They said that the severe blow of recession would affect semi skilled and unskilled workers. The return of Nepalese worker’s will have an impact on a balance of payment.
Similarly, the indirect impact of the economic crisis will propel the social sector into insecurity and doldrums. Sociologist and expert opinions that the returns of the Nepalese workers will make negative impacts to the society as there will be a rise in disorders and disputes.
The households of the foreign workers have been using their earnings to comfort their family living standards. With the money their children are getting private school education. Besides, their family standards have been improved through the earnings, which might come to the same level, as they become unemployed in their return.
Consequently, the poverty levels will rise as consumption levels and health status of the poor declines, which will invite high level disputes and disorders in the society.
A new study commissioned by the Asian Development Bank (ADB) titled, ‘The Impact of the Global Economic Slowdown on South Asia,’ notes that the sub region has been hit by capital outflows and weaker commodity prices, and faces a sharp slowdown in exports and remittances as the global troubles worsen.
It adds that governments could consider incentives to encourage overseas workers to remit money home, such as special savings instruments, and they should also discuss currency swap arrangements and other measures to keep their financial systems stable.
In the longer term, South Asian countries need to reduce their fiscal deficits, diversify their economies, step up infrastructure investment and boost intra-regional trade to take up the slack of lower demand from G7 nations, the study says.
There is a need of policies that need to be developed to encourage the use of remittances for promoting long- term national growth. Nepal needs to formulate policies that will ensure the investment of the migrants in the productive sectors especially in their country rather than spending them in the foreign land.
Many Nepalese migrants want to invest in the business sector in their home country. These types of investments on the part of remitters can lower poverty by expanding businesses in their home communities and generating jobs and income.
The state should ensure the migrants’ future as they return back to their country. It should provide opportunity to promote self-employment and create congenial environment to support their investment in different activities.
However, the economist claims that the remittance flows to the developing countries are expected to fall from 2 per cent of GDP in 2007 to 1.8 per cent in 2008. After many years of strong growth, remittance flows to developing countries began to slow down in the third quarter of 2008. This slowdown is expected to deepen further in 2009 owing to the global financial crisis.

NRB monetary policy focuses on price stability

By Sangam Prasain
Kathmandu, July 24,2009:
Governor of Nepal Rastra Bank (NRB) Dipendra Bahadur Kshetri on Friday unveiled the Monetary Policy for the fiscal year 2066/067.
The monetary policy has set its stance to be firm and cautious towards price stability, controlling the banks and financial institutions towards their excessive exposure to the share market and the supply of money in order to attain growth and stability of the country’s economy, Kshetri said.
The central bank’s monetary policy has laid down its firm stance to high inflation pressure from the monetary expansion through the adjustment in the petroleum prices and improvement in distributional channel. The annual average consumer price inflation is projected to be moderate at 7.0 per cent in 2009/10.
In the face of deteriorating investment environment, there could be an increase in exposure of commercial banks and financial institutions to the real sector, which might lead to surge of real estate price. "To control a bubble in the real sector, monetary policy stance on banks credit flow to this sector has been taken firmly."
The international reserve is sufficient to cover the merchandise and service imports for at least six month. In order to meet the target, the Balance of Payments (BoP) surplus of Rs. 18 billion is projected for 2009/10.
The growth rate of broad money is projected at 17.0 per cent for 2009/10. It is estimated to grow by 21.0 per cent in 2008/09.
The gross domestic credit of the banking sector is projected to expand by 19.3 per cent. Of the total domestic credit of banking sector, the credit to the private sector is projected to increase by 20.7 per cent.
Similarly, the range of counterparties (commercial banks, development banks and financial institutions) for the conduct of monetary policy has been kept unchanged.
The practice of undertaking the monetary policy only with the counterparties will be continued and the short-term Standing Liquidity Facility (SLF) is entitled only to counterparties.
The cash reserve ratio (CRR) has been kept unchanged at 5.5 per cent and the bank rate is kept unchanged at 6.5 per cent. The existing provision of refinancing facility of Rs. 2 billion to sick industries and the refinancing rate at 1.5 per cent will be continued for 2009/10.
The provision of refinancing rate to the rural development banks at 3.5 per cent has been continued.
Similarly, the export credit facility in domestic currency has been unchanged at 2.0 per cent. Commercial banks are allowed not to charge more than 5.0 per cent to the concerned borrowers on such facility.
The deprived sector credit requirement for the development banks has been increased to 2.0 per cent from 1.5 per cent and for finance companies to 1.5 per cent from 1.0 per cent.
According to the monetary policy, the commercial banks, development banks and finance companies are now required to invest in government securities ata rate of 6.0 per cent, 2.0 per cent and 1.0 per cent respectively of their total domestic deposit mobilization by second quarters of 2009/10. Such ratio should be maintained at a rate of 8.0 per cent, 3.0 per cent and 2.0 per cent respectively by the end of the fourth quarter of 2009/10.
In order to avert the excessive concentration of credit in a single sector, single obligor limit has been set at 50 per cent, including 25 per cent from fund based and remaining from non-fund based. The limit has been slashed to 25 per cent of core capital including that of non-fund based effective from July 17, 2010.
In the context of the possibility of establishment of foreign bank branches and offices in Nepal beginning 2010, the Memorandum of Understanding (MoU) will be prepared for home-host supervisory relation within this year.

Pandey unveils 285.9 billion budget
By Sangam Prasain

Kathmandu, July 13 - Finance Minister Surendra Pandey Monday unveiled the budget estimates of Rs. 285 billion 930 million for the fiscal year 2009/10.
Of the total budget, Minister Pandey has proposed Rs. 160.63 billion (56.18 per cent) general expenditure and Rs.106 billion 284.8 million (37.17 per cent) capital expenditure. Likewise, principal repayment is estimated to be Rs.19 billion 12.8 million (6.65 per cent).
The proposed expenditure is higher by 33.87 per cent than the revised estimates of the current fiscal year. The capital expenditure has been increased by 44.98 per cent, recurrent expenditure by 31.58 per cent and principal repayment by 4.53 per cent than the revised estimates of the current fiscal year.
Of the total expenditures, Rs. 135.58 billion (47.42 per cent) will go for general administration and Rs. 150.34 billion (52.58 per cent) for development related expenses.
Of the total required resources, Rs. 161.73 billion will be borne from the current sources of revenue. Out of the total foreign assistance of Rs. 78 billion 516.2 million, Rs. 56 billion 955.6 million would come in the form of foreign grants and Rs. 21.56 billion as loans. The budget will have a deficit of Rs. 46 billion 340.02 million, Pandey told the legislative parliament.
Minister Pandey said that the government would generate an additional Rs 15 billion 430.02 million through new sources of revenue mobilisation and there will be a net deficit of Rs. 30.91 billion which will be financed through domestic borrowings
The budget projected a growth rate of 5.5 per cent for the coming fiscal year. The growth rate in agriculture sector is expected to be at 3.3 per cent and the non-agriculture sector at 6.6 per cent. It is estimated that inflation rate will be around 7.0 per cent.
Pandey said the government would run the economy on socialism- and people oriented basis for the sake of high economic growth and distributive justice. All the three sectors of the economy -cooperatives, private and public sectors will have significant role to play.
Structural change in the economy would be initiated with commercialization of agriculture, industrialization based on agriculture, forestry and available minerals, hydroelectric power generation and its commercial use and also focusing on the new dimensions of tourism development by relinquishing subsistence agriculture and tax-benefits processing industrial structure.
Internal source will be increased and external dependency will be reduce for the sake of huge investment required to achieve high economic growth rate. Investment friendly environment will be created for the promotion of private sector investment by removing all kinds of policy and infrastructure oriented obstacles.
For the time being, emphasis will be given to mobilize foreign assistance for large physical and economic infrastructure of national priority, rural infrastructure, agriculture, social sector and inclusive development. In the long run, emphasis will be given to build a self-reliant national economy without the need of foreign assistance.
Political initiatives will be taken to minimize actions like Bandh, strike, highway obstruction, road bloc and Ghearao that obstructs the economic stability.
The objectives of the budget are to facilitate promulgation of the new constitution as per the people’s expectations and bring the peace process to an end; to create employment by encouraging roles and investments of the cooperative, private and public sectors; and to emphasize the development of large physical and economic infrastructures for rapid economic growth.
It also aims to ensure relief for conflict affected people control price and facilitate the supply system.
The budget has set priorities to help draft the constitution by implementing the Comprehensive Peace Accord and bringing the peace process to an end; to maintain law and order by removing impunity; and to increase investment for employment oriented inclusive development.
It also accords priority to implement targeted programs for the uplift and development of the disadvantaged groups, communities and geographical areas; to consolidate physical and economic infrastructure; commercialize and modernize agriculture for the transformation of the economy; and to accelerate social development by increasing investment in education, health and drinking water and sanitation sectors.
Besides, it recognizes the need to improve power generation and distribution; to mobilize the international assistance for the promotion of national interest; and to let the people feel the existence of a responsible government by improving public administration and service delivery.
Major sectoral policies and programmes of the budget
State Restructuring and Institutional Development of Federal Democratic Republic
Mutual economic and social inter-relations among hills, mountains and Terai-Madhesh will be strengthened. In order to facilitate the Constituent Assembly for the institutionalisation of the federalism, cooperation will be extended to the works of the State Restructuring Commission.
A People’s Movement and Martyrs Memorial Museum will be established in Gokarna, Kathmandu. A national ethnic museum will be established in Champadevi, Kathmandu. Planned development of the Narayanhiti Museum will be made. The statues of Terai-Madesh martyrs and martyr memorial parks will be established in memory of the martyrs of the Madesh movement.
For the judicial sector, government has allocated Rs. 1 billion 410 million to cooperate in effective implementation of the judicial performances as per the strategic reforms plan prepared by the independent judiciary.
Sustainable Peace, Relief, Rehabilitation and Reconstruction
Until the completion of reconciliation and rehabilitation works, government has continued the livelihood and monthly allowances to the Combatants of the Maoist Army staying in temporary camps.
Peace and Security: Expectations of People
A bio-metric smart card containing a picture will be distributed to all Nepali citizens as a national identity card, which can also be used for election purpose. This card will be arranged for drawing social security allowances, including elderly allowance, from any bank.
To materialize the spirit of the theme- "Peace and Security: Expectations of People", security system will be made capable, efficient and effective, and, thus, impunity will be ended. A separate Bureau will be established to carry out investigation and analysis of serious and organised crimes. Similarly, necessary arrangement will be made for industrial security.
Social Security and Inclusive Development
The government has given continuity to the social security allowances currently being provided to the elderly citizens, single women, endangered ethnic group, and, partially and fully handicapped individuals.
For this, government has scaled up the allowance of Rs. 500 being given to the Raute ethnic group to Rs. 1000. Raute ethnic group, if they wish, will be permanently settled in appropriate places. Government has allocated Rs. 7 billion 780 billion for social security.
Poverty Alleviation and Inclusive Programme
Scaled-up investment in local level programmes is essential for poverty alleviation and inclusive development. For this, nine programmes consisting of balanced education for all and literacy, health, safe drinking water, small irrigation, small and cottage industries, skill-oriented trainings and employment, intensive plantation of forestation, small hydroelectricity and local roads will be effectively implemented through community.
Poverty alleviation programme currently operational targeting at the socially and economically backward community and households below poverty line will be expanded to all the districts. For this, there is Rs. 2 billion 720 million.
To bring about improvement in the condition of child-care in poor and highly backward families, "Child Protection Grant" of Rs. 200 per month per child under the age of 5 for up to 2 children of the each poor Dalit family and all families in Karnali Zone will be provided from mid-October 2009, which has been allocated Rs. 720 million.
Society still rejects inter-cast marriage between dalit and non-dalit and the initial days of the couples thus married are normally tough. To encourage such inter-cast marriage, the government will provide a grant of Rs. 100,000 to the newly married couple within 30 days of marriage registration with the District Administration Office.
Similarly, to encourage widow-marriage, the government will provide a grant of Rs. 50,000 to the couple within 30 days of marriage registration with the District Administration Office. To increase the access of the widows to employment and other opportunities and to review the future structure of allowance, data of the widows will be collected.
Social and Cultural Preservation
Language, literature, art, music and culture of all ethnicities and janajatis will be preserved, maintained and promoted. Preservation of traditional monasteries, temples, mosques and ritual places will be continued with reaffirmed additional priority.
In the process of awarding the person who significantly contributed in the development of Maithali language, literature and culture, government has allocated Rs. 10 million as a revolving fund for "Mahakabi Vidhyapati Puraskar Guthi".
Women Development and Social Empowerment
Government has continued the concept of gender responsive budget to enhance gender equality, which has been proposed Rs. 49 billion 450 million, a 17.3 percent of total budget for the program which will directly benefit the women in the next year.
Youth Mobilization for Nation Building
Under National Youth Mobilisation Program, youth partnership, youth experience exchange and awareness campaigning program against addictions will be carried out. National Youth Council will be formed. For this, there will be Rs. 63.6 million budget.
According to the policy to encourage sports talent, the provision of life-long subsistence allowance will be made to gold medalist in Asian and Olympic games. Government has allocated Rs. 273.2 million budgets for National Sports Council to carry out the activities related to sports development.
Transformation in Agriculture for Economic Prosperity
Since agriculture sector is the main pillar of income and employment of majority of Nepalese people, program with the campaign "Agriculture for subsistence to Agriculture for sustainable development" will be carried out. There is Rs. 8 billion 60 million in the agriculture sector. And Rs. 1 billion 500 million to provide subsidy to chemical fertilizer.
The Government of Nepal will bear necessary expenses for commercial identification of Nepalese tea and coffee, which have distinct identification in international market, in the name of "Nepal Tea" and "Nepal Coffee" in international market.
"Sugarcane Board" with the participation of farmer themselves will be constituted to encourage sugarcane production, to increase productivity and to empower farmers.
Irrigation for increased agricultural production
A sum of Rs. 7 billion 950 million has been allocated for the entire irrigation sector, which is an increase of 35.76 per cent as compared to the revised estimate of current Fiscal Year.
Forest conservation and development
Government has proposed a sum of Rs. 3 billion 440 million for the forest conservation and development sector which is an increase of 37 per cent as compared to the revised estimate of the current Fiscal Year. A 22.3 million plants of multi- purpose species, herbal plants, cane, bamboo and Sajiwan will be planted to conduct the afforestation program as a campaign.
The opportunity of "Green Employment" will be created in rural area through implementing forest entrepreneurship program based on community owned forest resources with special priority. The area of community forest and leasehold forest will be expanded.
"Tourism Development for Wider Economic Growth"
Preparation will be made to observe Nepal Tourism Year 2011 with the aim of bringing 1 million tourists into Nepal through the campaign of "Nepali Temperament, Welcome and Hospitality of Guest" slogan. Under this program, package will be developed to attract tourists with the partnership of successful organization and institution of tourism sector and dissemination as well as publicity task will be carried out.
Construction of International Airport in Nijgadh of Bara will be started with high priority. Construction work of regional airport at Pokhara and Lumbini will be initiated.