Saturday, April 17, 2010

The Looming Food Crisis
Sangam Prasain


Growing con cern over soar ing food prices threatens to push millions of people deeper into poverty. The Asian Development Bank (ADB) has projected that the soaring cost of food affects one billion poor in Asia who spend the bulk of their wages on arranging two square meals a day.
The price of cereals, edible oil, pulses and vegetables has surged by 100 per cent compared to the price in 2000 and by 50 per cent in the last two months of the current fiscal year. This price is expected to increase by 40 per cent monthly if the major grain producing countries continue to impose restrictions on exports.
The global food crisis has been attributed to the poor harvest caused by climate change, use of agricultural commodities to make bio-fuels and switching of occupations by the farmers in the countries of South Asia. Besides, the growing population puts a lot of pressure on food production that has remained more or less static over the years.
Although the food crisis at the moment has been blamed on poor harvest, there is still some hope that India, Bangladesh and some other South Asian countries will see a bumper harvest in 2009.
Reasons behind crisis
At the outset, the increase in the price of oil in the international market has automatically raised transportation and fertiliser costs, which greatly discourage the farmers from raising the land’s productivity. Secondly, some developed countries are diverting food crops to produce bio-fuels. The use of agricultural commodities such as sugarcane, maize and oil seeds to produce alternative fuels has immensely contributed to the shortfall of grains in the international market. For example, the United States, the world’s largest producer and exporter of maize, diverts about 30 per cent of its total maize production to produce ethanol, whose demand has doubled in the last few years. This demand has attracted the farmers to growing cash crops, which are more economical than harvesting paddy and other food grains.
Thirdly, the growing rush to find employment abroad has led to the export of labour to the developed nations. The better income that these youths make in the developed nations is causing a shortage of labour in the home countries of South Asia. Fourthly, the weather has been playing havoc in some grain exporting countries, such as Australia which has experienced a substantial drop in its grain production. Finally, the increasing demand for meat and protein diet, which requires more input than cereals, in the developing countries has placed emphasis on livestock than on grain harvesting.
The latest World Development Report calls for greater investment in agriculture in the developing countries and warns that the sector must be placed at the centre of the development agenda if the goals of halving extreme poverty and hunger by 2015 are to be realised. The report says that the agricultural and rural sectors have suffered from neglect and underinvestment over the past 20 years. While 75 per cent of the world’s poor lives in the rural areas, a mere 4 per cent of the official development assistance goes to agriculture development in the developing countries.
Agriculture is said to consume 85 per cent of the world’s water available for use, and the sector has contributed to deforestation, land degradation and pollution. The report recommends measures to achieve more sustainable production systems and outlines incentives to protect the environment. The report further says that in agriculture-based countries, the agricultural sector is essential for overall growth, poverty reduction and food security. And these issues should be highlighted to increase public spending on agriculture.
Today more than 75 per cent of South Asia’s poor lives in the rural areas, and the agriculture sector employs about 60 per cent of the labour force. Agricultural growth in South Asia has been less than 3 per cent, far below the growth rates of other economic sectors, and this has been a major concern for this country in lessening the increasing poverty. The agricultural sector is regarded as an effective tool in poverty alleviation in South Asia. Unfortunately, this sector has not been effectively capitalised, with the youths more attracted towards foreign employment.
Obviously, the remittance has had a positive impact on the national economy, but the absence of an effective policy in the agricultural sector forces farmers to continue to adopt traditional methods of farming, which have led to declined productivity.
Agricultural growth will depend largely on investments in rural infrastructure such as irrigation, roads, transport and power. Therefore, investments in access to commercial markets and technology are crucial to reviving and sustaining agricultural productivity.
In the context of Nepal, it consumes 5-6 million tons of rice and wheat annually. Its exports have dwindled since a decade as Nepal now imports rice from India, which accounts for 2 per cent of that country’s rice exports, while Nepal’s wheat imports from India accounts for 0.6 per cent of its total wheat export. This dependence could go up in the coming years if the government does not introduce any effective policy, similar to the ones adopted by other South Asian and developing countries.
Long-term investment
The most serious challenge to the governments of the developing countries in dealing with the looming crisis is commercialising the traditional farming system. It should provide subsidy to small producers, which will significantly reduce the cost of doing business in the rural areas, and facilitate their integration into the value chain. Besides, land reforms, an effective labour policy and increasing long-term investment in the agriculture sector would give a boost to the farmers.

Development govt's top priority
By Sangam Prasain


Kathmandu, July 9 - The government on Thursday presented its policies and programmes according top priority to achieving rapid economic development and social transformation through a people-oriented budget guided by socialism.

The government will develop necessary physical infrastructure required to attract the private sector for industrialisation of the country under constitutional supremacy and rule of law by eliminating anarchy, insecurity and impunity.

An investment board will be established under the chairmanship of the Prime Minister for the smooth and expeditious implementation of decisions relating to private sector investment of national significance.

Long-term policy will be adopted for the mobilisation of national, foreign, private, bilateral as well as multilateral investments.

Price rise will be controlled by increasing the supply of food items and other daily necessities. Price cartelling in essential commodities and the syndicate system in the transportation sector will be abolished.

Development efforts will focus on reducing poverty, unemployment, backwardness, inequality and dependence.

Agriculture sector will be transformed from the current ‘agriculture for subsistence’ into ‘agriculture for sustainable development’. Emphasis will be laid on enhancing production pursuant to ‘One Village, One Product’ policy.

Big irrigation projects will be implemented as multi-purpose projects. Sunkoshi-Kamala Diversion and Bheri-Babai Diversion will be developed for the qualitative enhancement of agriculture production and productivity.

The government will adopt social justice, economic growth and distributive justice as its policy goals while following the slogan of ‘Cooperatives in Villages and Cities, and Employment at Every Household.’

Employment will be gradually established as a fundamental right of the citizens. Employment opportunities will be expanded through the medium of the public, cooperative and private sectors.

An ‘Employment Guarantee Programme’ will be carried out by the state to ensure at least 100 days of employment each year to people living below the poverty line.

Common people’s access to ownership of shares in the projects to be constructed under public sector investment

as well as other public enterprises will be made easier.

Nepal Airlines Corporation will be operated under public-private partnership.

With a view to ensuring uninterrupted supply of electricity in the country in the long-run as well as promoting its export in the future, programmes for the development of energy including hydro-electricity will be initiated as an important basis for national development.

High priority will be accorded to the implementation of rural electrification programmes and ‘Bright Nepal Campaign’ will be launched with the expansion of solar energy as well as micro and small hydropower projects.

Construction works of East-West railway and Hulaki Road in Terai-Madhesh will be initiated. The task of linking District Headquarters with road will be undertaken with priority.

Mid-hills road as well as Koshi, Gandaki and Karnali corridor road projects connecting Nepal-India border to Nepal’s border with Tibet in China will be initiated.

A fast track connecting Kathmandu to Terai as well as Dharan-Chatara-Gaighat-Hetauda Road, Seti highway and Rapti highway will be constructed. Construction work of a bridge over Koshi River at Chatara will be initiated.

‘Nepal Tourism Year- 2011’ programme will be successfully implemented. Emphasis will be laid on the identification and development of new tourism destinations and products as well as on the conduct of promotional activities in the tourist generating locations also in partnership with the private sector.

New strategy will be formulated for the promotion of domestic, regional as well as international tourism, and Nepal Tourism Board will be activated to implement it. Air Services Agreements will be concluded with additional countries for the promotion of tourism.

Special Economic Zones will be established to expand the base and competitive strength of exportable items.

Financial sector reform programmes will be undertaken. Strict action will be taken against the willful defaulters of bank loans.

Regulatory and supervisory capacity of Nepal Rastra Bank will be further strengthened. In order to protect the deposit of small individual depositors, compulsory insurance of certain amount of savings and fixed deposit by Banks and Financial Institutions will be introduced.

The foreign employment will be made systematic and easily accessible to general public. Priority shall be given to co-operative programmes for generating self-employment and self reliance for rural women.

In accordance with the policy of the devolution of power, the capacity of local bodies will be strengthened. The programme, "Build Our Village Ourselves", will be pushed forward.

An action plan on ‘Youth Empowerment’ will be undertaken in line with the National Youth Policy.

The Nepalese Missions abroad will be equipped with resources so as to making economic diplomacy more effective.

Nepalese Embassies will be established in South Africa, Brazil, Canada and Kuwait in the next fiscal year.

In order to protect and promote the rights and interests of the Nepalese migrant workers and to provide appropriate assistance to those who are in difficulties, Labour Attaches will be appointed.

Timely increment will be made on facilities given to civil servants based upon the recommendations of the High Level Pay Commission in order to keep the morale of civil servants high, enhance their work efficiency and re-gain people’s confidence through fair and efficient administration.

PM flight, power cut cause flight delay

SANGAM PRASAIN

KATHMANDU, DEC 27 - Passengers were delayed for more than five hours and international flights kept waiting for a landing signal, as Prime Minister Madhav Kumar Nepal's departure to Beijing and an hour-long power failure at the Tribhuvan International Airport (TIA) halted all activities on Saturday.

TIA authorities directed afternoon airlines operations to remain on hold, citing VIP escorting. "I was supposed to land in the morning but when I reached home, it was four in the evening," said former Additional Inspector General of Police, Keshav Baral, who took a Biratnagar-Kathmandu Buddha Air flight.

According to a TIA official, such delays are usual for VIP movement.

Sunita Bhandari, airport in-charge of Yeti Airlines said "Delays in flights during VIP movements is common. The airport's failure to expand its parking space has created more problems in the recent times, as more domestic and international airlines are being allowed to operate. There was no space left in the domestic section today due to a huge number of passengers awaiting their departure."

Yeti and Buddha Air were forced to cancel their 30 of their scheduled flights to Bhadrapur and Pokhara. Another 30 Buddha Air flights were delayed, according to Rupesh Joshi, marketing manager at Buddha Air. Meanwhile, Bahrain Air and Nepal Airlines aircraft were told to hold in the sky for nearly two hours.

TIA also had a 50-minute power cut at 6 p.m. Airline operators said that the power failure is what caused the delays in the evening flights. "Our flight to Nepalgunj was delayed by an hour due to the power cut," added Joshi. According to a TIA source, some aircrafts were also forced to make critical landings, due to the power cut.

However, the TIA management stated that the delay was due to bad weather. Only China Air was delayed due to the prime minister's departure to Beijing, TIA management maintained.

"We managed to adjust all the flights," said Dinesh Shrestha, Director General of TIA. Shrestha added that flights were allowed to operate even during the 'No Time Hour', when no landings or take offs are normally allowed.

More airlines to fly to Nepal

SANGAM PRASAIN

KATHMANDU, NOV 23 - 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.

Corn farmers in Tarai to be provided relief

SANGAM PRASAIN

KATHMANDU, MAR 24 - The Ministry of Agriculture and Cooperatives is preparing a relief package for the farmers of five Tarai districts whose maize crops yielded no corns.

Farmers in Bara, Rautahat, Sarlahi, Parsa and Nawalparasi had been implementing a hybrid maize mission programme for the last three years under which genetically modified maize had been grown to produce higher yields. However, this year, the plants produced no kernels.

"We will be proposing the relief programme to the cabinet on Wednesday," said Hari Dahal, spokesperson at the Agriculture Ministry.

The sufferers will be provided cash through the District Disaster Rescue Committee. They will also get free spring vegetable seeds which cost Rs. 100 per packet. About 250,000 seed packets will be distributed under the relief programme.

"We will also propose that the land taxes of the farmers be waived for a year," added Dahal. Productivity had increased to 8.6 tons per hectare from 2.2 tons in the five districts following implementation of the hybrid maize mission programme. However, output plunged by 53 percent this year.

Production dropped by 80 percent in Bara, 55 percent in Rautahat, 40 percent in Sarlahi, 70 percent in Parsa and 20 percent in Nawalparasi.

After conducting soil and other tests, technicians concluded that the long cold wave witnessed in these districts was the major reason behind the plants bearing no seeds. The cold prevented formation of pollen grains rendering the plants sterile, they said.

Five Indian multinational companies had distributed the transgenic maize seeds to the farmers at government subsidized rates. Dahal said that similar problems had been seen in parts of India.

The ministry is coordinating with the Nepal Agricultural Research Council to look into the problem. Experts from the International Wheat and Maize Research Centre in Mexico are to be invited to conduct studies.

Govt goes for Tarai tourism

SANGAM PRASAIN

KATHMANDU, DEC 16 - The Ministry of Tourism and Civil Aviation is planning to decentralize the country's tourism by promoting potential tourist spots in the Tarai that possess historical, religious and cultural importance but have remained unpublicized.

A recent cabinet meeting has endorsed this initiative to promote the Tarai region and preserve its historic, religious and cultural heritage sites.

The Tourism Ministry will play a major role in developing infrastructure and preserving the ethnic and cultural heritage sites before Nepal Tourism Year 2011 (NTY 2011), said under secretary Lok Bahadur Khatri of the ministry.

The government is aiming to diversify Buddhist and Hindu pilgrims whose numbers are expected to increase significantly during NTY 2011, he added.

Khatri said that Jhapa, Morang and Sunsari in the eastern region would be developed as Birat Tourism Area. The mythology of Birat is linked with Mahabharat where King Birat had taken shelter during his return from Mahabharat. King Birat's Palace, Arjun Dhara, Kichhak's Palace, Kichhakgadh and Pandav Gupha are some of the places to see here.

Similarly, Siraha and Saptari will be promoted as Salesh Sahakada Pradesh.

Likewise, Sarlahi, Mahottari and Dhanusha will be developed as Bidhya Mithila carrying a mythological message of the Ramayana. It will also be promoted as a marriage destination.

Parsa, Bara and Rautahat will be developed as Simraon Tourism Area. Nawalparasi, Rupendehi and Kapilvastu will be developed as Lumbini Tourism Area.

Banke, Bardia, Kailali, Kanchanpur and Dang will be promoted as Chisapani Tourism Area. Of these selected areas, Bardia has been selected as Tharu Gram Study Area.

The ministry is also starting a feasibility study in these areas to develop them for home stay tourism. It has allocated Rs. 2.5 million for the home stay programme. "Some areas discovered by Tara Gaon Development Committee will be pushed forward before the NTY 2011 campaign," Khatri added.

Likewise, Sri-Antu of Ilam, Jaljala of Rolpa, Tharu Gram of Dang, Rara of Mugu, Dhimal community of Jhapa, Sirubari of Syangja and Ghalegaon of Samsung district will be developed as Model Tourism Villages. The government has allocated Rs. 4 million for this programme.



Unity Air readying to take off

SANGAM PRASAIN

MAR 28 - Unity Air, a new player in the aviation sector of Nepal has been permitted international operation license by the Ministry of Tourism and Civil Aviation (MoTCA).

The new airline will be flying Kathmandu-Delhi, Kathmandu-Doha, Kathmandu-Dubai and Kathmandu-Kuala Lumpur routes, said Nagendra Prasad Ghimire, secretary at the MoTCA.

The government has already provided international airspace license to Buddha Air and Air Dynamic. "We will soon grant license to Shri Air that intends to operate charter helicopter services to UN agencies and for other tourism purpose," he said.

Bishnu Chettri, general manager of Unity International said that they intend to accomplish the aircraft purchase, market promotion and recruitment of staffs within 2010. "After the completion of all procedures, we will be flying by the end of 2010," he said.

In the first phase, the new airline has targeted Doha and Dubai, which are major Nepali labour markets. According to the Unity Air business plan, it will have a daily flight in Kathmandu-Delhi sector.

Similarly, there will be four flights a week to Doha, three flight a week to Dubai and two flights a week between Kathmandu- Kuala Lumpur.

He said that they are also aiming to fly to China and some European markets. However, plans for expansion to China and Europe will be assessed after rendering success in the primary targeted market. Chettri said that they were negotiating with a US Company and a Malaysian company for the purchase deal of four jet aircraft. According to him, each 150-seater jet would cost around Rs 6 billion.

Unity Air has been cleared for class B airspace. Every five years, the ministry reviews applications from airlines wanting to go international. This time, the ministry has fixed classes A, B and C airspace for airlines wanting to operate internationally.

Of the other two permitted international operation license, Buddha Air has been permitted to fly on the Pokhara-Lucknow, Janakpur-Patna and Kathmandu-Paro sector. The carrier's fleet consists of five 18-seater Beechcraft-1900D and two 47-seater ATR-42.

Similarly, Air Dynamic intends to fly on the Bhairahawa-Gaya, Kathmandu-Delhi, Kathmandu-Karachi, Kathmandu-Doha, Kathmandu-Bangalore, Kathmandu-Bagdogra and Kathmandu-Kuala Lumpur routes. Air Dynamic plans to acquire two Boeing 737-800 and one ATR-72 aircraft for this service.

The Ministry of Tourism and Civil Aviation has recently amended the civil aviation regulations requiring hopeful international airlines to put up a security bond of Rs. 5 million and have a paid-up capital of Rs. 500 million. The terms of reference document costs Rs. 50,000.

An airline that has fulfilled the terms of reference to go international must obtain an air operator certificate (AOC) within six months and start flights within a year after getting it.

Buddha’s planned Lucknow service likely to be delayed

SANGAM PRASAIN

FEB 09 - Buddha Air's plans to operate Pokhara-Lucknow flights are likely to be delayed by a couple of months as upgrading work at Pokhara airport has been progressing slowly.

On Nov. 18, a Buddha official had said that they would begin service from March 1. Birendra Basnet, managing director of Buddha Air on the date said that it would be using an ATR 42 for the Lucknow flight initially.

However, Ministry of Tourism and Civil Aviation (MoTCA) said that the process of upgrading the airport as a regional-international airport would take some time.

"It may take time to the airline to start its regional-international flights," said Laxman Prasad Bhattarai, spokesperson at the Ministry of Tourism and Civil Aviation.

According to him, the Pokhara airport needs to upgrade its facilities as per the international standards. "There needs to be an immigration office, quarantine, security among other human and physical infrastructure to be set up to meet the international airport standards," he said.

This process can take some couple of months. Bhattarai said that the ministry is coordinating with Civil Aviation Authority of Nepal (CAAN) in this regard.

Rupesh Joshi, marketing manager of Buddha Air said that they were optimistic to get approval for the cross-border flights within a week. "After getting approval we will apply for the airline schedule in the said destination," he said.

But, Joshi also is not sure on their targeted date scheduled for March. 1. "It may take some time," he said.

T.R. Manandhar, deputy director, Air Transportation and Regulation Department, CAAN, said that the MoTCA was handling over the issue. "We have been coordinating with the ministry in this regard and will make our move as per its direction," he said.

He said that they had not received the application for flight scheduled. "As we receive the airline flight schedule we will prepare the required facilities to the airline," he said.

The new air service agreement (ASA) between Nepal-India allows airlines from both countries to offer 30,000 seats per week to and from Nepal to five other cities and 21 other destinations in India.

The destination includes Pokhara, Bhairahawa, Biratnagar, Janakpur, Nepalgunj and Dhangadhi in Nepal; and Varanasi, Patna, Gaya and Lucknow in India..

Earlier, political parties and entrepreneurs of Pokhara had formed a committee to lobby the government to expand the infrastructure at Pokhara airport to allow it to handle flights to Lucknow.

A meeting of political parties, tourism entrepreneurs and the local administration had formed a nine-member committee. The committee has been urging the government not to delay the policy-level decisions and expansion of airport infrastructure. International flights from Pokhara have become a concern of the entire western region as it would help Pokhara to become a tourist hub.

Tourism entrepreneurs are hopeful that international flight from Pokhara would not only benefit Indian tourists but Nepalis too. Pokhara airport presently has a 4700-foot-long runway and handles 80-100 flights daily.

Similarly, Buddha Air is setting its sights on other major cities in India and Bhutan.

The carrier has forwarded its business plan to the Ministry of Tourism and Civil Aviation in this regard.

Buddha Air to link Lucknow in March

SANGAM PRASAIN

KATHMANDU, NOV 09 - Buddha Air, a leading domestic airline, is all set to enter the Indian skies. The carrier is preparing to fly to Lucknow by the first week of March 2010. It would be starting its international operations from Pokhara.

"Our target is to start by the first week of March if not by the first week of April," said Birendra Basnet, managing director of Buddha Air.

Buddha will be the fifth Nepali private airline to start international operations and the third to start air services to India. The airline has already registered an application at the Ministry of Tourism to this effect.

Buddha's move has come after the new air service agreement between Nepal and India that was signed in the second week of September. The new agreement, apart from allowing each other's airlines to carry up to 30,000 passengers weekly, has permitted airlines of both countries to operate cross-border flights from regional airports including Pokhara, Bhairahawa, Biratnagar, Janakpur, Nepalgunj and Dhangadhi in Nepal and Varanasi, Patna, Gaya and Lucknow in India. Buddha will be the first domestic airline to utilise the new agreement.

Initially, it will be offering Pokhara-Lucknow flights and will add flights to New Delhi and Dehradun later on. It will be using its current fleet of ATR-42 for the Lucknow flight.

But for that, it has to get approval from the government to use turboprops like the ATR-42 to fly on international routes. As of now, Nepali aviation laws don't allow aircraft with turboprop engines to fly on international routes.

Basnet, who thinks Pokhara can be developed into first tourist destination, is targeting pilgrim tourists.

"Pokhara is a complete tourist destination and is the gateway to the Annapurnas and the Muktinath pilgrimage," said Basnet. "It would be easier for Indian tourists to visit Muktinath by the Pokhara-Lucknow direct flight." Buddha is planning to fix the fare at Rs. 16,000 for the Lucknow-Pokhara-Kathmandu flight. The low operation cost is another reason for choosing Pokhara.

"The reason for choosing Pokhara for our India operation is to reduce the airfare," said Basnet. Pokhara airport has a comparatively lower airport charges including landing charge.

Buddha, Dynamic to fly international

SANGAM PRASAIN

KATHMANDU, MAR 24 - The Ministry of Tourism and Civil Aviation has approved the business plans of Buddha Air and Air Dynamic to operate international flights.

Buddha Air has been permitted to use class C airspace while Air Dynamic has been cleared for class B airspace.

A cabinet meeting on March 18 approved the plans of these two airlines after they fulfilled the terms of reference, a ministry source said. The carriers have been asked to collect the letters of intent from the ministry within a week.

Every five years, the ministry reviews applications from airlines wanting to go international. This time, the ministry has fixed classes A, B and C airspace for airlines wanting to operate internationally.

Class A airspace has been set for airlines whose flights last longer than three hours. Class B is for flights lasting three hours, and class C has been designated for carriers operating flights of less than three hours' duration.

Shri Air, Unity Air, Buddha Air and Air Dynamic had acquired the terms of reference from the ministry on Feb. 22 to spread their wings to international routes. The business plans of the first two are still being processed, the ministry said. Buddha Air has been permitted to fly on the Pokhara-Lucknow, Janakpur-Patna and Kathmandu-Paro sectors. The carrier's fleet consists of five 18-seater Beechcraft-1900D and two 47-seater ATR-42.

Similarly, Air Dynamic intends to fly on the Bhairahawa-Gaya, Kathmandu-Delhi, Kathmandu-Karachi, Kathmandu-Doha, Kathmandu-Bangalore, Kathmandu-Bagdogra and Kathmandu-Kuala Lumpur routes. The airline would expand its wings to Europe, Hong Kong and Malaysia subsequently.

Air Dynamic plans to acquire two Boeing 737-800 and one ATR-72 aircraft for its services.

"We are flying between Kathmandu and Gaya targeting pilgrims during the upcoming Nepal Tourism Year 2011," said Kaziman Atraya, vice president of Air Dynamic.

He said that his airline was targeting the Buddhist market. "We will gradually increase our reach to other sectors," he added.

Domestic airlines are required to upgrade their infrastructure besides security and operational integrity to get a license to operate on international routes. Potential carriers are required to possess a certain fleet size and commercial experience to fulfil the terms of reference.

The Ministry of Tourism and Civil Aviation has recently amended the civil aviation regulations requiring hopeful international airlines to put up a security bond of Rs. 5 million and have a paid-up capital of Rs. 500 million. The terms of reference document costs Rs. 50,000.

An airline that has fulfilled the terms of reference to go international must obtain an air operator certificate (AOC) within six months and start flights within a year after getting it.


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 and

the ruling party must come up with a Common-Mini
mum-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.

Sajiban, best alternative for fossil fuel: Experts
Sangam Prasain







Kathmandu, April 11

Incessant global demand, exhaustion due to over- exploitation and ever rising prices of fossil fuel have triggered an urgent search for a substitute fuels that are ecologically and economically viable.

The energy experts from the national and international arenas have come up with the idea ‘Green Energy the Next Revolution’, by planting Jatropha (Sajiban or Kadam) and carrying out industrial activities related to the extraction of bio-diesel from jatropha seeds.

Recently, these experts have launched ‘Mass Jatropha Development Programme’, with the theme, ‘A hope to alternative clean energy solution in Nepal’.

According to them, over 500 thousands hectares of unused land in Nepal could be used for Jatropha cultivation that can produce bio-diesel and reduce dependency on imported petroleum products.

There were over 50 plants in Nepal that bears seeds and could produce oils. But Jatropha has a capacity of high oil extraction as compared to other seeds, they said.

Similarly, the cultivation of jatropha as a source of alternative energy has several benefits in an economy based mainly on agriculture. "It can solve the unemployment crisis considerably and also ensures the optimal usage of arable land," they said.

Dr. Khem Raj Bhattarai, an energy expert, claimed that Nepal was the only country that was lagging behind to tap the value of jatropha. He said that this cultivation could make Nepal independent in energy and help reduce trade deficit.

He pointed out that the Jatropha oil was superior to others oils as it had a short gestation period, easy handling, high oil extraction and superior quality of bio-diesel.

He, however, said that the lack of awareness, land use policy and plantation, research and study, reluctance of investors and availability of low population of these species in nature was the challenges that Nepal had to negotiate while promoting this product.

Prof. Dr. Jagannath Shrestha said that the fuel produced from jatropha produces less carbon emission compared to other fossil fuels. According to him, if one-liter diesel was burnt, it produces 3.5-kg carbon dioxide but jatropha had half of it.

Shyam Mohan Shrestha, chairman of the Future Energy International (FEI), said that FEI had an experienced partner company hailing from the Republic of Korea.

He said that FEI and the Korean partner company would venture for the establishment of pan-oplie natural resources that would contribute to the economy of the country and also help reduce environment degradation.

He said that FEI had planned to invest, attract investors and technical support through its worldwide connections in order to make this industry a success story in the country.

He pointed out that the production of Jatropha bio-fuel solves the unemployment crisis considerably and also ensures the optimal usage of arable land.

Minister for Science and Technology Ganesh Sah said that the bio-fuel was the only alternative to Nepal at the time when it was passing through problems like energy crisis, high pollution and the global warming.

He said the government had given special priority to the alternative energy sector. He committed that the government would encourage such green energy production and would make all its efforts towards using it as an alternative sources.

Jatropha is highly resistant to drought, thrives in arid areas, and requires as little as thirty liters of water a month during the non-rainy season. Animals do not eat this plant and thus is safe from them.

The plant produces oil-bearing seeds within six months of planting and can last over thirty years without replacement when managed properly. Its seeds contain thirty per cent or more oil, which can be easily expelled and extracted.

Besides reducing the consumption of fossil diesel and resultant savings on their import, the use of bio-diesel confers various advantages that include significant reduction of the various pollutants in the burnt exhaust fumes produced by traditional fuels.

Gas traders withdraw agitation

SANGAM PRASAIN

KATHMANDU, MAR 21 - Gas traders on Saturday withdrew their agitation that was scheduled from Sunday.

After the Nepal Oil Corporation (NOC) committed to supplying a bulk of 16,000 tons from March 31, both dealers and sellers announced the withdrawal of their protest.

The move by traders to withdraw their announced agitation came after the NOC issued a public notice to ensure smooth supply from the next month.

Earlier, the traders said that they were forced to stop supplying gas as the NOC had cut deliveries of the fuel by more than 50 percent.

"Both sides, the NOC and traders were called by the Chief District Officer on March 19 to settle the issue," said Suresh Prajapati, general secretary of Gas Industry Nepal.

The total amount of gas imported in the country was at 33 bullets on Thursday and Friday. However, with the available bulk, customers are likely to face gas shortage until Tuesday. One bullet contains 17.5 tons of LP gas or one tanker load.

For immediate relief, the NOC has also committed to delivering about 40-50 gas bullets from Monday. This will arrive in the Capital and other part of the country on Tuesday.

With the uncertainty of regular gas supply in the market demand for gas has surged to 17,000 tons from 12,000 tons in the last five months. "Gas hoarding is the major reason for the fuel shortage," said Prajapati.

He said that NOC should make its delivery system regular to abate the hoarding and black-marketing. "The NOC has committed to providing 16,000 tons of gas in the next month. However, it should deliver the same volume for some months to lessen the hoarding," he added.

On March 18, LP gas traders warned that they would bring distribution to a total halt from March 21 because of inadequate delivery by NOC.

The traders had submitted a warning letter to NOC that they would lock all units and give the keys to the district administration office if it did not listen to their demands and honour the agreement signed with it on March 2.

Just before, the announcement of fresh agitation, gas traders on Feb. 25, had halted the sale and distribution of LP gas for a week.

There are 26 LP gas factories across the country and about 200 to 250 tankers are used for importing and distributing the fuel

Plan for hydrant dispenser refuelling at TIA

SANGAM PRASAIN

KATHMANDU, MAR 10 - Nepal Oil Corporation (NOC) and plan to introduce hydrant dispenser to refuel aircrafts.

With CAAN planning to expand Tribhuvan International Airport (TIA) under its TIA improvement project, the introduction of hydrant dispenser can be accomplished in the same project, a NOC official said.

The project is incorporated in both the CAAN master plan and NOC's commercial project.

The project which has been found economically viable is designed to refuel aircrafts incorporating innovative design and extremely efficient fuel-flow technology coupled with industry-standard components to provide easy, efficient and safe aircraft refuelling using the airport underground hydrant fuel system.

"With the growing airline industry in the country, and CAAN's move to expand existing facilities at the TIA, we can execute the underground hydrant fuel system," said Rabin Kumar Sharma, chief of the NOC, Aviation Fuel Depot.

Currently, NOC is delivering 200,000 to 250,000 litres aviation fuel daily through its nine refuelling tankers. Of the total refuelling tankers three tankers deliver 27,000 litres each, three 16,000 litres and the remaining three have a capacity of delivering 11,000 litres fuel. One aircraft (airbus) consumes 50,000 to 70,000 litres of fuel. The refuelling tankers pump 2,500 litres fuel into an aircraft per minute. However, the hydrant dispenser typically delivers aviation fuel from the hydrant into the aircraft at around 4,000 litres per minute.

The 2-km underground hydrant fuel system that will be linked directly to the TIA aircraft parking area is expected to reduce manual labour by 50 percent, Sharma said.

There will not be a substantial reduction in the existing cost factor of delivering fuel; however, the project will have a long-term economical benefit.

"It will mitigate fuel handling errors, reduce congestion, leakages and occupy a comparatively smaller space. More safety and efficiency-improving functions are also standard in this system," Sharma said.

NOC has prepared a pre-feasibility study of the system and forwarded the draft to CAAN saying it a viable project. The estimated construction cost for the project is estimated at Rs. 500 million.

However, NOC and CAAN are not decided on who will push the project ahead. "There are two alternatives; either go through Joint Venture model or take individual ownership," Sharma added.

According to NOC, the project can be push forward during the tender called for the international agency for the TIA expansion; the project can be incorporated as parallel in the same bidding procedure.

However, CAAN said that the NOC should also manage required infrastructure to take the project ahead incorporating its safety features.

"We can incorporate the project in the TIA improvement project in accordance to how the NOC's prepares its infrastructure," said Prem Raj Lohani, director general of TIA improvement project, CAAN.

He said that the project needs close coordination between NOC and CAAN. NOC should be clear on its infrastructure and plan for introducing the hydrant dispenser at TIA.

60 expeditions apply for various peaks

SANGAM PRASAIN

KATHMANDU, APR 08 - Spring is here and so are hordes of mountaineers aspiring to step on top of the Himalayan peaks. So far, 60 expeditions have applied to climb different mountains during this spring season, and 49 of them have been issued permits.

"The applications of the remaining 11 are being processed," said Baburam Bhandari, under secretary at the Industrial Department, Ministry of Tourism and Civil Aviation.

According to the department, 547 persons (480 men and 67 women) have received permits to attempt 21 peaks above 5,647 m for this spring season. Among them, 224 have obtained permits for Sagarmatha, 58 for Makalu I, 49 for Lhotse, 35 for Annapurna I, 24 for Urkema Peak, 23 each for Dhampus and Manaslu, 20 for Dhaulagiri, 19 for Ama Dablam, 13 for Bhrikuti and 12 for Nuptse.

This spring, 22 expeditions have received permits to climb Sagarmatha. There were 29 mountaineering teams last year and 36 teams in 2008. Officials said that China had banned expeditions on the northern side during the Beijing Olympics which accounted for the sudden rise in expeditions from the Nepal side. Mountaineering is considered to be high-value tourism, and the government has collected Rs. 170.35 million as royalty from 49 expeditions so far.

Bhandari said that the number of expeditions was likely to increase till April 15 when the spring climbing season ends. "However, applications can be entertained in May too," he added. Ang Tshering Sherpa, president of the Nepal Mountaineering Association (NMA), said that the government had allowed it to grant climbing permits for 33 peaks out of the 326 peaks in the country.

Last year, the NMA had processed applications from 1,200 expedition teams consisting of six-seven members each. There were 600 mountaineering teams during the spring season.

"We issued 230 permits between March and the first week of April," Sherpa said.

Pakistan has reduced the climbing royalty by 50 percent and the government has encouraged development of infrastructure which are

the reasons there was no

significant rise in the number of expeditions in Nepal, Sherpa added.

Nepal offers a royalty discount of 50 percent in the winter and summer seasons and 75 percent in the autumn

season. The royalty for the spring season is higher. No climbing royalty is charged

for mountains in the Mid-Western and Far Western development regions.

The royalty for peaks higher than 6,500 m ranges from US$ 1,000 to US$ 25,000 depending on the route and elevation. For mountains of less than 6,500 m in height, each climber is charged US$ 400.

Some spring expeditions

Country Mountaineers

USA 90

Korea 37

Finland 34

Britain 30

Spain 26

France 26

Germany 22

Russia 21

Canada 20

Australia 19

UK 19

Malaysia 14

Govt will not allow urban home-stay

SANGAM PRASAIN
The government will not promote home-stay in the urban areas and its periphery, according to a new home-stay policy initial draft that will soon come into effect.

Private sector players wanting to operate home-stay for accommodating tourists in urban homes need to meet the criteria set by the government. They would need to be affiliated with the tourist class hotels, and lodges operating in the areas.

The government provision states that urban home-stay should follow all the standards prescribed by the hotels.

A preliminarily home-stay policy draft prepared by the government in coordination with the Nepal Tourism Board says that the home-stay operation both in villages or urban areas should be registered.

As per the present legal provisions, tourist's accommodation in the urban home is considered illegal.

However, with the government announcement of Nepal Tourism Year 2011 and a target to host one million tourists, the existing tourist standard hotels will not have sufficient hotel rooms.

With 669 hotels including all categories and a combined capacity of 26,063 beds, it would mean a shortfall of 822 beds daily.

In response to the massive shortfall, the private sector is of the view that urban home stay could provide service to the surplus tourists.

After the private sector floated a proposal showing willingness to host tourists in private houses in the upcoming NTY-2011 the number of such operations is on the rise especially in urban areas. In Nepal, the Tourism Policy 2008/09 does not allow for home stay provisions except in rural areas.

The new home-stay policy that will soon be in effect states that such home-stay operations need to at least five Kms away from hotels, lodges and resorts. Likewise, it should be five Kms or an hour's walk from urban areas or district headquarters.

The draft says that for community-based home-stay there should be a minimum of five houses. These houses should be 500 meter apart from each other. One home-stay should have four rooms with eight beds. However, those with more than four rooms should fulfil all the provisions and regulations as set by the hotels, lodges and resorts. The operators need to renew their business every two years.

The implementation of the procedures for home stay facility targeting foreign visitors is in the final stage, said Laxman Prasad Bhattarai, spokesperson at the Ministry of Tourism and Civil Aviation.

Home-stay in some small rural communities has already been legalised. Visitors stay as guests in a resident's home where they live with the family, sharing common rooms, meals and conversation. However, government delay in home-stay policy has encouraged illegal establishments in the urban areas as commercial businesses

Maoist all-clear for Tourism Year

SANGAM PRASAIN

KATHMANDU , FEB 26 - Nepal Tourism Year 2011 (NTY-2011) received a big boost on Thursday, with UCPN (Maoist) signing the all-party commitment paper to assist tourism. Chairman of the party Pushpa Kamal Dahal on Thursday signed a commitment letter to this effect.

As of now, 16 political parties— including the Nepali Congress, CPN-UML—have signed the paper. The parties will make a public pledge for the Tourism Year on Friday at the “soft launch” of NTY-2011.

The implementation committee of NTY-2011 has been seeking pledge from the parties not to hold strikes next year. The committee has forwarded the commitment draft to the 25 parties represented in the Constituent Assembly.

The Maoist support however comes with a caveat. The party made changes to the draft before signing it.

The original draft read: “We will not organise any strikes, bandas or other types of activities that will directly or indirectly affect NTY-2011.” After the Maoist revision the sentence now reads: “In essence, we will not affect tourism and tourism related activities during the campaign.”

“During the first meeting with Chairman Dahal, we were asked to remove the words bandas and strikes,” said an NTY implementation committee member. “During the second meeting, we were asked to add ‘under special circumstances’ after ‘bandas and strikes’.” The tourism entrepreneurs were reluctant to remove these words. Hence, a mutually agreed decision to revise the pledge.

“The commitment from the Maoists is a big achievement,” said Prachanda Man Shrestha, CEO of Nepal Tourism Board. “We can now assure the visitors that our country is free from strikes.”

Austrian brings water to Kavre village

SANGAM PRASAIN

KAVRE, MAR 30 - Pabitra Sapkota, 40, is happy that water can now be obtained in front of her house and she doesn't have to walk 3 km anymore to fetch it.

Sapkota lives on a hilltop 1,500 m high at Bhamarkot, the highest point in Panchkhal VDC. She and her fellow villagers never dreamed of having water close to their homes as the government and hydrologists had declared that there were no water sources in the area.

Elmar Hagen from Austria, a social worker and founder member of Dhulikhel Hospital, has brought joy to the faces of these villagers by getting water out of the ground by deep boring.

The project he started now provides 100 litres of water per day to 85 households and a school with 400 students. The well is 250 m deep and the water is potable.

The project distributes water through six pipelines to the villagers in Jagata, Maidan, Kote, school area, Thati and Shree Ganesh School. It plans to extend the supply to 120 households in the second phase.

Villagers in Panchkhal had been conducting protest programmes in front of the office of the district development committee and other authorities demanding water for the last six years.

Hagen began by widening a dirt road to get the drilling machine weighing 35 tons up to the hilltop. After drilling through numerous layers of granite, he finally struck water. He spent Rs. 4.5 million of his own money for the project.

"Now we are aiming to develop irrigation and modern farming in order to create income generating activities for the villagers," he said.

Arun Shrestha, executive director of Dhulikhel Mountain Resort and chairman of the Temple Plaza Water Users Committee, Bhamarkot, said they had constructed a tank with a capacity of 40,000 litres. They supply water twice a day and charge each household Rs. 125 monthly. He said that the capacity would be expanded and extend the supply to other villages suffering from acute water shortages.

Up in the air

SANGAM PRASAIN

APR 03 - ‘Hold on to the harness tightly; the wind is perfect for taking off. Take a few steps front when I ask you to,” shouts Zsolt Herker, a paragliding pilot from Hungary. We didn’t know what he was talking about or exactly what we were supposed to do. All we could think of was the deep gorge below us that seemed to open up, ready to swallow us.

Here we were, strapped onto the backs of two paragliding instructors, 27-year-old Gabor Szalma, and 34-year-old Herker, both from Hungary, at Chapakharak, an almost bare hilltop with only a few houses. The wind was bellowing, and though it seemed like abnormal weather conditions, our instructors were adamant; this was the right wind, strong enough to let us take off and paraglide above the skies of Kathmandu.

Here we were, starting our flight from an altitude of 2,100m above sea level. To look at the Valley below from that height is a sight never to be forgotten. Forget the smoke gushing out of the brick factory chimneys at Bhaktapur, and the constant movement of traffic below. It’s just houses, houses, and houses. One after another, sticking to each other. Once in the sky, Kathmandu sticks out like a sore sight, but the hills around the Valley and the snow-lined peaks to the north make up for all the sights below.

But the rush of adrenaline makes it all worthwhile. And it is the adrenaline junkies seeking this kind of rush that Nepal is trying to call to its shores, with Nepal Tourism Year 2011 just around the corner. What better way to start off an adventurous holiday in Nepal than with Paragliding right here in the Capital.

XSports Nepal, with its offices in Thamel, is the company behind this adventure dream. The company, led by Keshav Sthapit—former mayor of Kathmandu, has taken the initiative to introduce this breathtaking sport in the Capital, which was earlier limited to Pokhara.

Kabi Raj Karki, field director of XSports Nepal, says, “Kathmandu has some great adventurous attractions as well. And paragliding is one sport which has not been fully explored here in Kathmandu.”

The rush begins after a 30-minute ride to Chapakharak on a motorcycle. XSports has hired two trainers on a seasonal basis, Gabor and Herker, who hold experience of five and 10 years respectively in this extreme sport.

Gliding is a highly weather-sensitive sport and the flying season throughout Nepal is generally from November to February. The best months are November and December. However, the topography and climate of the Capital also make it an ideal destination for gliding in other months.

During take off, the earth feels like it’s shifting away from your legs; it’s certainly a scary experience at first, and one has to wait for a signal from the instructor to adjust the harness for comfort. “Just relax and make yourself comfortable;” That is the signal to take a few breaths.

To begin your flight, you run towards the direction of the wind, and while taking off the wind begins to carry you off. All you have to do is control the glider with the ropes on either arm. Here in Kathmandu, paragliding is a different game than in Pokhara, as here there isn’t the same natural beauty that you see there. Instead, here, the views are more about human civilization, and viewing the Valley from a bird’s eye view to get a glimpse of Kathmandu as a whole.

After about 15 minutes in the air, the temperature begins to lower as you begin climbing to an altitude of 2,400 m. That is one thing enthusiasts must remember: it might be warm during take-off, but once you are flying, the cold winds make you shiver.

After gliding for about 20 minutes, one starts to get used to the cold winds and the constant turbulence. While in the air, the instructors ask us to say a few words about the experience while a camera on top of their helmets keeps rolling.

“Do you want to go to the extreme and do some acrobatics?” the instructors ask a few minutes before touching down. It’s scary agreeing to the proposal, but the constant rush of adrenaline leaves you no option but to say yes. “Get ready for some action and hold it tight,” they shout. “Bend to your left; stay in the middle; bend to your right,” and the process is repeated. The first few minutes, things seem out of control, but what acrobatics in the air require are guts and the hunger for the thrill. The most thrilling stunt is the ‘Spiral’, where the instructor controls the glider and lets you freefall while rotating spirally—all this happening at 150 km per hour!

There is a sense of incompleteness when the instructors tell you, “Lets go back; we need to land.” We make our first attempt to land at the same spot from where we took off, but Herker says the wind is too strong for us; we fly back for another attempt.

Finally, after being in the air for a few more minutes and a few more stunts, Herker says, “Let’s do it now; step on some solid ground.” We get closer to the landing spot. Just a few metres above the ground, the instructors ask us to release the harness and prepare ourselves to trot on the landing site as soon as our feet touch the ground to slow down the speed of the glider.

The world seems to hold so many thoughts while you are in the sky. Who is watching me from below? Then, you suddenly start shouting. Your excitement levels are raised to their highest levels, and you can feel the winds in every direction. You can feel the rush, and the energy flowing inside every cell of your body. And, you don’t ever want to touch the ground again.

There are various deals for the paragliding enthusiast. The company charges Nepalis Rs. 5,000 for a single flight, and Rs. 6,500 for SAARC citizens. For others, it costs £70 pounds (Rs. 8,400). Please contact XSports at 01443309

Nepal Dairy, Hot Breads and Bakery Café shut down

SANGAM PRASAIN

FEB 08 - More than 26 fast food restaurants and cafes across the Kathmandu Valley operated by Nepal Dairy, Hot Breads and The Bakery Cafe were forced to shut down Sunday by Maoist-affiliated workers demanding a hike in their service allowance and salaries and resolution of other labour-related issues.

The management of these eateries said that they were forced to close as the workers had been disrupting service.

However, the All Nepal Hotel and Restaurant Workers Union said that closing the restaurants and cafes without any prior information was against the Labour Act.

The restaurant owners said they had become unable to operate due to the frequent disruptions by the workers which had been continuing for some weeks.

The workers had stopped service for six hours a day since Feb. 4. The stoppage increased to eight hours a day from Feb. 6, said a member of the management of Nepal Dairy who declined to be identified.

The restaurant owners said that the workers had violated an agreement signed with them which said that there would be no wage hikes for three years. "The agreement is two years old, and demanding a raise at this point is against the norms," the source said.

However, the union said that the terms of the collective bargaining agreement signed with the three restaurants and bakery cafes had already completed its three years.

General secretary of the union Prakash Shrestha said that the hotel and restaurant workers had been demanding a 40 percent salary hike and a 100 percent increase in the dearness allowances for the last seven months. All the star hotels and about 70 percent of the restaurants have addressed the issue, said Shrestha. Union leaders said that Nepal Dairy, Hot Breads and the Bakery Café had ignored the workers' demands; and that as a result, the workers unit committee had launched a peaceful agitation.

"Disputes can be resolved through discussions, but the owners are reluctant to come to the table," Shrestha added.

He said that if they did not heed the demand of the workers, they would be compelled to shut down their corporate houses.

We are not concerned about the owners closing or opening their businesses, but the demands of the workers should be addressed, said Ganesh Regmi, general secretary of Maoist-affiliated All Nepal Trade Union.

"As part of pressurising them, the workers have been organising sporadic agitations," he said. "We will initiate our agitation programme as per the restaurant owners' move," he said.

On Nov. 28. star hotel workers had demanded a 40 percent salary hike and a 100 percent increase in the dearness allowance. About 570 workers are employed in these three restaurant and café chains. The closure means daily losses of Rs. 200,000 to Rs. 400,000 to each outlet.


Cash removed from farm relief package

SANGAM PRASAIN

KATHMANDU, APR 16 - The Ministry of Agriculture and Cooperatives has re-sent the proposal for a corn relief package to the cabinet after removing the cash distribution plan as it had been opposed by the Finance Ministry.

On March 30, the government had approved a relief package worth Rs. 200 million to compensate the farmers of five Tarai districts whose maize crops yielded no corns.

The Agriculture Ministry had proposed a relief package that included cash incentives, waiver of land tax and free packets of vegetable and crop seeds to the suffering farmers. However, the Finance Ministry did not agree to providing cash.

"We have sent the proposal to the cabinet again after amending it according to the Finance Ministry's request," said Bijaya Kumar Mallik, director general of the Agriculture Department.

As per the new proposal, Rs. 170 million has been allocated for nitrogen, phosphorus, potash, seeds and transportation.

Similarly, Rs. 25.6 million will be provided to distribute vegetable seeds to the farmers and Rs 1.9 million for waiver of land tax.

Hari Dahal, spokesperson of the Agriculture Ministry, said the compensation would be distributed after verifying the loss suffered by the farmers. The compensation will be distributed through the District Natural Disaster Rescue Fund under the chairmanship of the chief district officer, he said.

Farmers in Bara, Rautahat, Sarlahi, Parsa and Nawalparasi had been implementing a hybrid maize mission programme for the last three years under which genetically modified maize had been grown to produce higher yields. However, this year, the plants produced no kernels. Farmers had used different varieties of seeds produced by Pioneer Company, Pinnacle Com-pany, Seed Tech Com-pany, Sandhya Company and Tropical Company. These five Indian multinational companies had distributed the transgenic maize seeds to the farmers at government-subsidised rates.

Productivity had increased to 8.6 tons per hectare from 2.2 tons in the five districts for two years. However, output plunged by 53 percent

this year.

Production dropped by 80 percent in Bara, 55 percent in Rautahat, 40 percent in Sarlahi, 70 percent in Parsa and 20 percent in Nawalparasi.

Nepal well positioned to catch MICE

SANGAM PRASAIN


KATHAMNDU, MAR 12 - Tourism entrepreneurs have said that Nepal has a good chance of winning international bids for MICE (meetings, incentives, conventions and exhibitions), a high potential tourism segment, because of its scenic allures and an improving political climate.

They said that MICE tourism brings high-yield tourists and has no seasonality bottlenecks. At a time when hotel entrepreneurs are worried by low occupancy rates, MICE can be the answer, they added.

In addition to international conventions, resort destinations like Nagarkot, Dhulikhel, and Godavari are hosting domestic conferences which shows that MICE offers good business prospects.

Hoteliers said that among the events held under MICE, professional and business meetings accounted for 50 percent, product launches 35 percent, fashion shows 10 percent and other events 5 percent.

Similarly, workshops, trainings, interactions and

cultural programmes made

up most of the domestic

MICE events.

Nepal Tourism Year 2011 implementation committee coordinator Yogendra Sakya said that international conferences, meetings and sports and adventure activities would be major products during the upcoming national campaign.

"We don't have a new product immediately, but the focus will be on international events and activities through business perspective plans during 2010 and 2011," he added.

Marketing manager of the Hotel Yak & Yeti Bharat Joshi said that they expected a 10 percent increase in the MICE segment. In 2009, 130 international programmes were held at the Yak & Yeti. A total of 7,830 persons participated in different conferences, product launches and other activities in 2009 yielding Rs. 40.5 million in revenue. Similarly, there were 725 domestic programmes in which 8,695 persons participated.

In 1998, Nepal received 463,684 visitors with 24 percent of them stating trekking, mountaineering, rafting and jungle safari as their purpose of visit while 11 percent out down business, official and conference purposes.

The conflict and deteriorating security situation took a heavy toll on tourist arrivals and MICE was similarly affected, tourism entrepreneurs said.

Subodh Rana, former president of the Nepal Incentives and Convention Association that collapsed in 2001, said that MICE started recovering after 2007.

MICE tourism was good in 2007 and 2008, however, it slumped in 2009 due to the global economic crisis.

Tourism experts claim

that the revenue generated from MICE is almost

double that from other tourism segments.

Nepalese business affected by political instability



Finally the PM admitted that political instability is taking toll on business. Nepal Bandh has become an essential part of Nepal's political landscape. Everyone is doing their parts to make it a "success" - Maoists affiliated trade union, tanker drivers, Transportation workers, doctors at TUTH. Industrialists are fed up with government's inaction in addressing this issue and have threatened to do a "lock-down" of their companies. The cabinet has responded by agreeing in principle to mobilize 2500 Armed Police Force for industrial security. This is probably lip-service than anything.

As reported earlier, political strife is affecting imports of fertilizer from third countries. As a result, Ministry of Agriculture and Co-operatives (MoAC) is requesting India to supply 100,000 tons of Urea and DAP but India has agreed to supply only half that amount.

According MoAC, 80 percent of maize cultivation in Bara, 70 percent in Parsa, 55 percent in Rautahat, 40 percent in Sarlahi and 20 percent in Nawalparasi has failed due to fake hybrid seeds. The government has decided to provide Rs. 200 million compensation to the affected farmers. Food shortage is rearing its ugly head in mid and far-western Nepal due to 30-35 percent drop in summer crop production. Chick should cost Rs. 65 but the going rate is Rs. 90. Hatchery entrepreneurs and farmers accuse each other. Public transport fare is going up by 10 percent, the last hike was on March 3, 2009. The government is mulling amending Consumer Protection Act of 1997 to curtail soaring prices essential commodities.

Despite incessant political instability, government is doing its duty to collect revenues. In the first eight months of fiscal year 2009/10, it raised Rs. 105 billion or 26 percent higher than during same the period in the previous year. The top three categories were VAT (Rs. 33.6 billion), custom duties (Rs. 21.9 billion) and income tax (Rs. 17.5 billion). Nepal Telecom was the largest tax payer in the country because it earned a whopping Rs. 10.2 billion during 2008/09. Nepal Airline Corporation is apparently also profitable with revenue of Rs. 60 billion and loses of Rs. 220 million on domestic flights.

Government has increased its budget for road construction to Rs. 23 billion and has allocated another Rs. 15 billion for maintenance.

Remittance, the bedrock of Nepal's economy is wobbling. For the first six months of 2009/10, it was up 18.6 percent versus up 65.7 percent during the same period last year. Now Mauritius wants Nepalese workers.

While Nepal's stock market is trading at 40-month low, Commodity and Metal Exchange Nepal is expanding its product line to include trading of "crude oil" and "natural gas".