SANGAM PRASAIN
KATHMANDU, MAR 31 -
In a bid to curb air traffic congestion and takeoff and landing delays, Tribhuvan International Airport (TIA), the country’s only international airport, is preparing to start round-the-clock operation from October.
Projected rise in the number of passengers in 2011, increased international airlines flight frequency and continuous traffic growth for the last couple of years are some major reasons prompting TIA to start 24-hour service, said a TIA official.
According to TIA’s passengers’ and aircraft movement data, the year 2010 saw a total of 3.99 million passengers movement, against 3.40 million in 2009. In 2010, TIA handled 586,244 additional passengers, up by 17. 21percent, compared to 2009. In terms of aircraft movement, the airport processed 99,291 aircrafts in 2010, against 91,892 in 2009, up by 8.05 percent.
TIA handles 27 international airlines and 13 domestic carriers. Currently, the airport operates 18 hours per day although it is open for 24 hours. With the Nepal Tourism Year-2011 targeting 700,000 air passengers, 200,000 more to what the country had received in 2009, TIA’s operation hours had been a serious issue.
Also, international airlines planning for additional flights will also add pressure on TIA. Recently, China Southern and Dragon Air doubled their flight frequency to Kathmandu, while Spice Jet doubled its flight to 14 from seven per week and Oman Air increased its seven flights per week to nine. The Indian domestic carrier IndiGo is also expected to join Nepal soon.
As per the NTY target, the airport has to process 400,000 additional passengers (arrival and departure). “As per the target, we have planned to operate flights from 5pm to 12am, which is an unoccupied time interval,” said Ratish Chandra Lal Suman, general manager of TIA. Recently, Qatar Airways, Dragon Air, China Southern and Air Arabia are operating evening services. Although the plan for round-the-clock operation is only meant for international carriers, TIA said to ease domestic air traffic congestion it plans to dedicate morning time for domestic carriers.
“We are renovating the existing domestic parking apron to increase facilities and enhance passenger processing capacity. The renovation work will be completed within 45 days,” added Suman.
TIA, which was designed to handle 1,350 passengers per hour, has been processing passengers almost double of the figure. Recently, TIA processed 3,500 passengers in an hour. However, the existing manpower has been a concern for TIA to start full-fledged operation.
“We are assessing the cost benefit analysis, ie, we need extra manpower and have to provide additional incentives to those working in the evening. On the other hand, we have to reduce the parking cost during lean hours to encourage them, which will definitely reduce TIA’s profit,” said Suman.
Officials at the Civil Aviation Authority of Nepal (CAAN), the regulatory body of the aviation sector, said the renovation and construction work has been funded through CAAN’s internal budget, considering the pressure on TIA during the NTY.
Wednesday, March 30, 2011
Monday, March 28, 2011
Panel to recommend reforms in NOC
SANGAM PRASAIN
KATHMANDU, MAR 29 -
In yet another bid to bring reforms in the state-owned Nepal Oil Corporation (NOC), the government recently formed a committee under the coordination of lawmaker Bhim Acharya.
The committee has been asked to conduct studies on NOC’s losses, shrinkages, leakages and administrative costs and recommend necessary reforms to the government.
Although several committees were formed over the last decade, their reports were always dumped without implementation. However, unlike previous committees, this committee has been formed at the political level by the Cabinet.
What makes the new committee different from earlier ones is it has representation of all major parties at the Constituent Assembly. The idea behind this all-party mechanism is to let the parliament and parliamentarians know the issues plaguing NOC. Time and again, lawmakers have been criticising the government over the price hike of petroleum products.
Fearing public protest, the government always took populist move of giving subsidy to NOC every time when there was need for price hike. Initially, the Ministry of Finance provides NOC with loans which are later converted into grants. “First of all the country imports petroleum products using foreign currency. On top of that, we are giving grants to NOC,” said a senior MoF official. “The government cannot bailout NOC in this manner.” The first meeting of committee held on Saturday decided to collect suggestions from 28 political parties, 13 student unions, consumer rights activists and other stakeholders to formulate a concrete measure to address the problem.
Lawmaker Hari Roka, a member of the committee, said the panel will study the current distribution system, NOC’s administrative cost, price adjustment mechanism, its arrears and even political recruitments. “The committee will draft certain rules and regulations to make the corporation transparent,” he said. Roka added that they have asked NOC to provide all its documents.
In 1995, the government had formed NOC reform committee followed by another committee in 2002 under the coordination of Tapa Bahadur Singh. Another committee headed by Shankar Sharma was formed in 2004 and then next committee headed by Bhanu Prasad Acharya was formed in 2006.
All four previous committees had suggested an automatic fuel price adjustment system in line with the international price, but could not be implemented.
Reform measures recommended successive committees include automatic price rise as per the international trend, petroleum price be increased to the level that covers NOC’s costs and liberalisation be adopted in import and distribution.
However, successive governments have failed to implement these measures and there are doubts whether recommendations made by the new committee will be implemented. Roka himself is not sure over the implementation of recommendations of the new committee. “Reforms in NOC will depend on the next supply minister,” said Roka. The committee is scheduled to submit its report within next 10 days.
Trade expert Posh Raj Pandey said the key and longstanding problem of NOC is the pricing of fuel. “Market forces doesn’t fix the price here, but is done by the government,” he added.
Pandey stressed on the need for appointing multiple suppliers, ending NOC’s monopoly. This will create a competitive environment and people can get oil at competitive rates. “The government should encourage the private sector to step into oil business. It should even offer them incentives for the purpose,” he added. Petroleum dealers are also not confident regarding the implementation of the new report. “Reports are always prepared and dumped,” said Saroj Pandey, president of Petroleum Dealers’ Association, expressing dissatisfaction over the formation of the committee without the representation of the private sector.
However, Ministry of Commerce and Supplies Spokesperson Ganesh Dhakal seemed positive. “For the first time, a high level committee with the representation of several political parties has been formed,” said Dhakal.
KATHMANDU, MAR 29 -
In yet another bid to bring reforms in the state-owned Nepal Oil Corporation (NOC), the government recently formed a committee under the coordination of lawmaker Bhim Acharya.
The committee has been asked to conduct studies on NOC’s losses, shrinkages, leakages and administrative costs and recommend necessary reforms to the government.
Although several committees were formed over the last decade, their reports were always dumped without implementation. However, unlike previous committees, this committee has been formed at the political level by the Cabinet.
What makes the new committee different from earlier ones is it has representation of all major parties at the Constituent Assembly. The idea behind this all-party mechanism is to let the parliament and parliamentarians know the issues plaguing NOC. Time and again, lawmakers have been criticising the government over the price hike of petroleum products.
Fearing public protest, the government always took populist move of giving subsidy to NOC every time when there was need for price hike. Initially, the Ministry of Finance provides NOC with loans which are later converted into grants. “First of all the country imports petroleum products using foreign currency. On top of that, we are giving grants to NOC,” said a senior MoF official. “The government cannot bailout NOC in this manner.” The first meeting of committee held on Saturday decided to collect suggestions from 28 political parties, 13 student unions, consumer rights activists and other stakeholders to formulate a concrete measure to address the problem.
Lawmaker Hari Roka, a member of the committee, said the panel will study the current distribution system, NOC’s administrative cost, price adjustment mechanism, its arrears and even political recruitments. “The committee will draft certain rules and regulations to make the corporation transparent,” he said. Roka added that they have asked NOC to provide all its documents.
In 1995, the government had formed NOC reform committee followed by another committee in 2002 under the coordination of Tapa Bahadur Singh. Another committee headed by Shankar Sharma was formed in 2004 and then next committee headed by Bhanu Prasad Acharya was formed in 2006.
All four previous committees had suggested an automatic fuel price adjustment system in line with the international price, but could not be implemented.
Reform measures recommended successive committees include automatic price rise as per the international trend, petroleum price be increased to the level that covers NOC’s costs and liberalisation be adopted in import and distribution.
However, successive governments have failed to implement these measures and there are doubts whether recommendations made by the new committee will be implemented. Roka himself is not sure over the implementation of recommendations of the new committee. “Reforms in NOC will depend on the next supply minister,” said Roka. The committee is scheduled to submit its report within next 10 days.
Trade expert Posh Raj Pandey said the key and longstanding problem of NOC is the pricing of fuel. “Market forces doesn’t fix the price here, but is done by the government,” he added.
Pandey stressed on the need for appointing multiple suppliers, ending NOC’s monopoly. This will create a competitive environment and people can get oil at competitive rates. “The government should encourage the private sector to step into oil business. It should even offer them incentives for the purpose,” he added. Petroleum dealers are also not confident regarding the implementation of the new report. “Reports are always prepared and dumped,” said Saroj Pandey, president of Petroleum Dealers’ Association, expressing dissatisfaction over the formation of the committee without the representation of the private sector.
However, Ministry of Commerce and Supplies Spokesperson Ganesh Dhakal seemed positive. “For the first time, a high level committee with the representation of several political parties has been formed,” said Dhakal.
Sunday, March 27, 2011
Domestic air passenger movement up 12.83 pc
SANGAM PRASAIN
KATHMANDU, MAR 28 -
Stiff price competition among major domestic airlines propelled the demand for air travel in 2010. The figure of domestic passengers’ movement in 2010 depicts the fact that airlines attracted customers by offering low fares.
Domestic air passenger movement saw a robust growth of 12.83 percent in 2010 compared to the previous year. According to the statistics released by Tribhuvan International Airport (TIA), domestic airlines carried 1,554,701 travellers in 2010, or 176,833 more than in 2009.
Meanwhile, domestic aircraft movement increased 4.83 percent in 2010 compared to 2009. There were 79,874 flights in 2010, up 3,683 from 2009. There are eight domestic airlines and five helicopter services currently operating from Kathmandu.
However, intensified price competition will set the alarm bells ringing for major domestic airlines with the oil price rising to a massive level in 2011.
Following the increase in fuel surcharge in February and December last year, domestic airlines had increased their fares last month citing heavy losses. Unexpectedly, airfare soared by over 16 percent which reflects
airlines’ concerns that their businesses in 2011 might not do well like in 2010.
“The year 2010 has been a good year for almost all the airlines; however, the number of passengers has dropped 30-35 percent in the last two-three months due to increased airfares,” said Rupesh Joshi, marketing manager of Buddha Air.
Airlines said that higher tourist arrivals and greater travel by NGOs and INGOs around the country had resulted in an increase in the number of passengers for Nepal’s domestic airlines in 2010.
Buddha Air carried 615,567 passengers in 2010, up 10.53 percent from 2009 while its aircraft movement dropped to 23,238 from 24,797 previously as it began operating larger aircraft, the ATR-72.
According to Joshi, 70 percent of the passengers on domestic airlines are Nepalis. Although, tourist arrivals have been swelling, carriers said their business depended on home passengers. “If the price of fuel continues to rise, the airline business will see a drastic fall.”
Yeti Airlines was the second largest domestic carrier with 478,225 passengers, a drop of 0.54 percent compared to 2009. The number of passengers flying Yeti’s subsidiary Tara Air soared 141 percent compared to 2009. Tara Air started operations in June 2009 and flies on short-haul routes. It carried 42,724 passengers in 2009.
Agni Air’s passenger movement rose 10.94 percent to 193,313 from 174,244 in the previous year. Guna Airlines, which started service in May 2009, carried 96,122 passengers in 2010, up 143 percent from 2009.
The poor performance of Nepal Airlines Corporation (NAC) is also visible in the domestic sector. The number of passengers carried by NAC in 2010 dipped 11.84 percent to 47,081 from 53,406 in the previous year.
The Civil Aviation Authority of Nepal said that domestic passenger movement was projected to grow 10 percent annually.
“TIA handles both domestic and international aircraft through its single runway, and limited airspace and increased air traffic have become a major concern,” said TIA general manager Ratish Chandra Lal Suman.
He added that CAAN was studying the possibility of giving priority to large aircraft at TIA and diversifying small aircraft to regional hubs to ease congestion at Nepal’s only international airport.
KATHMANDU, MAR 28 -
Stiff price competition among major domestic airlines propelled the demand for air travel in 2010. The figure of domestic passengers’ movement in 2010 depicts the fact that airlines attracted customers by offering low fares.
Domestic air passenger movement saw a robust growth of 12.83 percent in 2010 compared to the previous year. According to the statistics released by Tribhuvan International Airport (TIA), domestic airlines carried 1,554,701 travellers in 2010, or 176,833 more than in 2009.
Meanwhile, domestic aircraft movement increased 4.83 percent in 2010 compared to 2009. There were 79,874 flights in 2010, up 3,683 from 2009. There are eight domestic airlines and five helicopter services currently operating from Kathmandu.
However, intensified price competition will set the alarm bells ringing for major domestic airlines with the oil price rising to a massive level in 2011.
Following the increase in fuel surcharge in February and December last year, domestic airlines had increased their fares last month citing heavy losses. Unexpectedly, airfare soared by over 16 percent which reflects
airlines’ concerns that their businesses in 2011 might not do well like in 2010.
“The year 2010 has been a good year for almost all the airlines; however, the number of passengers has dropped 30-35 percent in the last two-three months due to increased airfares,” said Rupesh Joshi, marketing manager of Buddha Air.
Airlines said that higher tourist arrivals and greater travel by NGOs and INGOs around the country had resulted in an increase in the number of passengers for Nepal’s domestic airlines in 2010.
Buddha Air carried 615,567 passengers in 2010, up 10.53 percent from 2009 while its aircraft movement dropped to 23,238 from 24,797 previously as it began operating larger aircraft, the ATR-72.
According to Joshi, 70 percent of the passengers on domestic airlines are Nepalis. Although, tourist arrivals have been swelling, carriers said their business depended on home passengers. “If the price of fuel continues to rise, the airline business will see a drastic fall.”
Yeti Airlines was the second largest domestic carrier with 478,225 passengers, a drop of 0.54 percent compared to 2009. The number of passengers flying Yeti’s subsidiary Tara Air soared 141 percent compared to 2009. Tara Air started operations in June 2009 and flies on short-haul routes. It carried 42,724 passengers in 2009.
Agni Air’s passenger movement rose 10.94 percent to 193,313 from 174,244 in the previous year. Guna Airlines, which started service in May 2009, carried 96,122 passengers in 2010, up 143 percent from 2009.
The poor performance of Nepal Airlines Corporation (NAC) is also visible in the domestic sector. The number of passengers carried by NAC in 2010 dipped 11.84 percent to 47,081 from 53,406 in the previous year.
The Civil Aviation Authority of Nepal said that domestic passenger movement was projected to grow 10 percent annually.
“TIA handles both domestic and international aircraft through its single runway, and limited airspace and increased air traffic have become a major concern,” said TIA general manager Ratish Chandra Lal Suman.
He added that CAAN was studying the possibility of giving priority to large aircraft at TIA and diversifying small aircraft to regional hubs to ease congestion at Nepal’s only international airport.
Saturday, March 26, 2011
Casino Royalties: When the govt wavers, the PAC shavers
SANGAM PRASAIN
KATHMANDU, MAR 25 -
The government is still undecided about taking action against the casinos that have failed to clear royalty dues, and the Parliament’s Public Accounts Committee on Friday has once again cracked the whip on the government to scrap the licenses of the casinos.
The PAC on Dec 28. 2010 had instructed the government to scrap the licenses of those casinos refusing to clear the royalty dues within 35 days.
The PAC also directed the Ministry of Finance (MoF) to initiate action against those unwilling to pay the dues. The MoF has currently put on hold any transaction of land belonging to Nepal Recreation Centre (NRC) that runs four casinos in the country.
Lawmaker Ajay Chaurasia said that the hotel would be liable for the remaining dues if the property of NRC is not enough to clear the government dues. The committee has also directed the Tourism Ministry to keep it updated on the moves taken to bar Nepali citizens from entering casinos.
Though the PAC has directed the government to cancel the licenses of those casinos that allow entry of Nepali citizens, this directive hasn’t been implemented. Stating that Nepalis are being arrested from casinos, lawmaker Prem Bahadur Singh urged for cancellation of licenses of such casinos. “The PAC directive has been violated,” Singh said adding that the licenses of these casinos should be scrapped immediately.
The parliamentary committee on Dec. 28, 2010 had directed the government to cancel the licenses of all the casinos that fail to clear their dues within 35 days. Only two casinos—Casino Everest and Casino Tara—had cleared their dues when the Department of Revenue Investigation (DRI) formally wrote to the Tourism Ministry for the scrapping of the licenses. The DRI on Feb. 14 had formally requested the tourism ministry to take against the eight casinos that have failed to clear dues within the 35 days given by the PAC.
However, the Tourism Ministry didn’t show any urgency to take action against the eight casinos forwarded by the DRI. In between, four more casinos—Casino Rad, Casino Venus, Casino Grand and Casino Shangri La—cleared their dues and royalties. As yet, Casino Anna, Casino Royale, Casino Nepal and Casino Fulbari haven’t cleared their dues.
Lawmaker Usha Gurung said that the government should not beat all casinos with the same stick. “The case of casinos paying partial dues should be different from those unwilling to pay any amount.”
PAC’s Friday meeting also directed the Tourism Ministry to immediately revoke the license issued to other than five-star hotels. Currently, Casino Anna’s operating license is with Annapurna International, not with Hotel Annapurna. It was given the license when Annapurna International used to operate both Hotel Annapurna and Casino Anna.
The meeting directed the concerned authorities to resolve the workers’ problems if any casino shuts down.
The PAC asked the concerned ministries to inform the committee about the progress on directives issued on Dec. 28, 2010 and Feb. 2, 2011. On Feb 2, the PAC had directed the ministries to start the process of relocating casinos outside Kathmandu Valley. It had also directed the tourism ministry to prepare casino guidelines within 15 days and implement them.
Meanwhile, Casino Anna union leader Krishna Pandey said that the government should not immediately close down the casinos that are employing hundreds of people. According to Pandey, Casino Anna is in the process of getting new management from India that has ensured to clear the government dues and royalty. The new management—Shivam Impex Hotel and Restaurant— is in the process of registering itself at the Company Register Office and pay government dues.
KATHMANDU, MAR 25 -
The government is still undecided about taking action against the casinos that have failed to clear royalty dues, and the Parliament’s Public Accounts Committee on Friday has once again cracked the whip on the government to scrap the licenses of the casinos.
The PAC on Dec 28. 2010 had instructed the government to scrap the licenses of those casinos refusing to clear the royalty dues within 35 days.
The PAC also directed the Ministry of Finance (MoF) to initiate action against those unwilling to pay the dues. The MoF has currently put on hold any transaction of land belonging to Nepal Recreation Centre (NRC) that runs four casinos in the country.
Lawmaker Ajay Chaurasia said that the hotel would be liable for the remaining dues if the property of NRC is not enough to clear the government dues. The committee has also directed the Tourism Ministry to keep it updated on the moves taken to bar Nepali citizens from entering casinos.
Though the PAC has directed the government to cancel the licenses of those casinos that allow entry of Nepali citizens, this directive hasn’t been implemented. Stating that Nepalis are being arrested from casinos, lawmaker Prem Bahadur Singh urged for cancellation of licenses of such casinos. “The PAC directive has been violated,” Singh said adding that the licenses of these casinos should be scrapped immediately.
The parliamentary committee on Dec. 28, 2010 had directed the government to cancel the licenses of all the casinos that fail to clear their dues within 35 days. Only two casinos—Casino Everest and Casino Tara—had cleared their dues when the Department of Revenue Investigation (DRI) formally wrote to the Tourism Ministry for the scrapping of the licenses. The DRI on Feb. 14 had formally requested the tourism ministry to take against the eight casinos that have failed to clear dues within the 35 days given by the PAC.
However, the Tourism Ministry didn’t show any urgency to take action against the eight casinos forwarded by the DRI. In between, four more casinos—Casino Rad, Casino Venus, Casino Grand and Casino Shangri La—cleared their dues and royalties. As yet, Casino Anna, Casino Royale, Casino Nepal and Casino Fulbari haven’t cleared their dues.
Lawmaker Usha Gurung said that the government should not beat all casinos with the same stick. “The case of casinos paying partial dues should be different from those unwilling to pay any amount.”
PAC’s Friday meeting also directed the Tourism Ministry to immediately revoke the license issued to other than five-star hotels. Currently, Casino Anna’s operating license is with Annapurna International, not with Hotel Annapurna. It was given the license when Annapurna International used to operate both Hotel Annapurna and Casino Anna.
The meeting directed the concerned authorities to resolve the workers’ problems if any casino shuts down.
The PAC asked the concerned ministries to inform the committee about the progress on directives issued on Dec. 28, 2010 and Feb. 2, 2011. On Feb 2, the PAC had directed the ministries to start the process of relocating casinos outside Kathmandu Valley. It had also directed the tourism ministry to prepare casino guidelines within 15 days and implement them.
Meanwhile, Casino Anna union leader Krishna Pandey said that the government should not immediately close down the casinos that are employing hundreds of people. According to Pandey, Casino Anna is in the process of getting new management from India that has ensured to clear the government dues and royalty. The new management—Shivam Impex Hotel and Restaurant— is in the process of registering itself at the Company Register Office and pay government dues.
Spring is the season to be merry mountaineering
SANGAM PRASAIN
KATHMANDU, MAR 25 -
The spring mountaineering season (March-May) sees the largest number of mountaineers heading for the Himalaya. During this season, the government collects more than Rs 200 million as mountaineering royalty from expeditions making a bid on Everest alone.
As of the present, 10 expeditions have applied to climb the world’s highest peak, a government official said. The 10 teams contain a total of 109 members.
According to the Tourism Industry Division at the Ministry of Tourism and Civil Aviation that issues expedition permits, the government has so far collected Rs 193 million in royalties from Everest expeditions. The royalty for Everest ranges from US$ 25,000 to US$ 70,000 per expedition depending on the number of members (maximum 15) and the route.
Last year, the government collected Rs. 220 million in mountaineering royalties during the spring season. This climbing season that ended on May 25 saw 347 climbers making it to the top of the world’s highest peak. Among the summiteers, 157 were foreigners and 190 Nepalis.
Government officials are hopeful that the number of prospective climbers will increase this year as the royalty for Dhaulagiri has been halved. Also, as part of a scheme to boost tourism and Nepal Tourism Year, the government has announced that Everest summitters will get free Nepali visas for two years.
According to official statistics, 3,128 climbers have scaled Everest since it was first climbed by Edmund Hillary and Tenzing Sherpa in 1953.
The government has opened 326 peaks in the Nepal Himalaya for mountaineering. According to the Tourism Industry Division, it has received the highest number of applications to climb Everest from the US followed by the UK, Japan and Australia.
“We expect to receive more applications as the spring season lasts till May end,” said Indra Kumar Maharjan, an official at the Tourism Ministry. The government provides a 50 percent discount on the mountaineering royalty in the winter and summer seasons and a 75 percent discount 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.
KATHMANDU, MAR 25 -
The spring mountaineering season (March-May) sees the largest number of mountaineers heading for the Himalaya. During this season, the government collects more than Rs 200 million as mountaineering royalty from expeditions making a bid on Everest alone.
As of the present, 10 expeditions have applied to climb the world’s highest peak, a government official said. The 10 teams contain a total of 109 members.
According to the Tourism Industry Division at the Ministry of Tourism and Civil Aviation that issues expedition permits, the government has so far collected Rs 193 million in royalties from Everest expeditions. The royalty for Everest ranges from US$ 25,000 to US$ 70,000 per expedition depending on the number of members (maximum 15) and the route.
Last year, the government collected Rs. 220 million in mountaineering royalties during the spring season. This climbing season that ended on May 25 saw 347 climbers making it to the top of the world’s highest peak. Among the summiteers, 157 were foreigners and 190 Nepalis.
Government officials are hopeful that the number of prospective climbers will increase this year as the royalty for Dhaulagiri has been halved. Also, as part of a scheme to boost tourism and Nepal Tourism Year, the government has announced that Everest summitters will get free Nepali visas for two years.
According to official statistics, 3,128 climbers have scaled Everest since it was first climbed by Edmund Hillary and Tenzing Sherpa in 1953.
The government has opened 326 peaks in the Nepal Himalaya for mountaineering. According to the Tourism Industry Division, it has received the highest number of applications to climb Everest from the US followed by the UK, Japan and Australia.
“We expect to receive more applications as the spring season lasts till May end,” said Indra Kumar Maharjan, an official at the Tourism Ministry. The government provides a 50 percent discount on the mountaineering royalty in the winter and summer seasons and a 75 percent discount 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.
Wednesday, March 23, 2011
Imports surge as LPG rules hearth
SANGAM PRASAIN
KATHMANDU, MAR 23 -
The consumption of Liquefied Petroleum Gas (LPG) increased by 16.29 percent in the first eight months of the current fiscal year as against the corresponding period the last fiscal year.
According to Nepal Oil Corporation (NOC) statistics, the country imported 100,557 tonnes of LPG in the first eight months of the current fiscal year as against 86,455 tonnes during the same period the last fiscal year.
NOC statistics show that LPG consumption has increased eight-fold over the last 14 years. The period between 1995-1996 is regarded as the first time when there was excessive demand for LPG when LPG was formally introduced as an alternative to kerosene in urban and semi urban areas.
The NOC statistics show that LPG consumption started rising after 2007-2008 when import surged by almost 20 percent. Nepal imported 115,813 tonnes of LPG in 2007-08 as against 96,837 tonnes the preceding year. In 2008-09, LPG import increased by 21 percent to touch at 141,171 tonnes.
Gas bottling companies say the reason behind the sharp surge in LPG import is that more households are using LPG as cooking fuel. The energy crisis has also prompted people to rely on LPG. According to the bottling companies, changing lifestyle of the urban population is the main cause behind the increased import of LPG. The rising energy crisis has also reduced the use of electronic appliances.
Bottlers say consumers’ penchant for holding on to more LPG cylinders than required has also contributed to the rise in import. With the supply of LPG erratic at times due to price hike, consumers have been found clinging to more cylinders than what they actually require. “Even the import of 17,000 tonnes of LPG per month would not meet the country’s demand,” said Suresh Prajapati, general secretary of the Nepal LP Gas Industry Association (NLPGIA).
The growing demand for LPG saw new players entering the LPG bottling business. Currently, there are three dozen LPG bottling companies in Nepal.
With India recently agreeing to allow Nepal to import LPG from other countries, private players say it would help to cater the growing demand. Nepal and India had reached an agreement during the recent Nepal-India Trade Talk in this regard.
Import of LPG by Nepal Oil Corporation
Fiscal Year LPG Import
1995-96 18,600
1996-97 21,824
1997-98 22,961
1998-99 25,019
1999-00 30,627
2000-01 40,102
2001-02 48,757
2002-03 56,097
2003-04 66,142
2004-05 77,594
2005-06 81,005
2006-07 93,562
2007-08 96,837
2008-09 115,813
2009-10 141,171
KATHMANDU, MAR 23 -
The consumption of Liquefied Petroleum Gas (LPG) increased by 16.29 percent in the first eight months of the current fiscal year as against the corresponding period the last fiscal year.
According to Nepal Oil Corporation (NOC) statistics, the country imported 100,557 tonnes of LPG in the first eight months of the current fiscal year as against 86,455 tonnes during the same period the last fiscal year.
NOC statistics show that LPG consumption has increased eight-fold over the last 14 years. The period between 1995-1996 is regarded as the first time when there was excessive demand for LPG when LPG was formally introduced as an alternative to kerosene in urban and semi urban areas.
The NOC statistics show that LPG consumption started rising after 2007-2008 when import surged by almost 20 percent. Nepal imported 115,813 tonnes of LPG in 2007-08 as against 96,837 tonnes the preceding year. In 2008-09, LPG import increased by 21 percent to touch at 141,171 tonnes.
Gas bottling companies say the reason behind the sharp surge in LPG import is that more households are using LPG as cooking fuel. The energy crisis has also prompted people to rely on LPG. According to the bottling companies, changing lifestyle of the urban population is the main cause behind the increased import of LPG. The rising energy crisis has also reduced the use of electronic appliances.
Bottlers say consumers’ penchant for holding on to more LPG cylinders than required has also contributed to the rise in import. With the supply of LPG erratic at times due to price hike, consumers have been found clinging to more cylinders than what they actually require. “Even the import of 17,000 tonnes of LPG per month would not meet the country’s demand,” said Suresh Prajapati, general secretary of the Nepal LP Gas Industry Association (NLPGIA).
The growing demand for LPG saw new players entering the LPG bottling business. Currently, there are three dozen LPG bottling companies in Nepal.
With India recently agreeing to allow Nepal to import LPG from other countries, private players say it would help to cater the growing demand. Nepal and India had reached an agreement during the recent Nepal-India Trade Talk in this regard.
Import of LPG by Nepal Oil Corporation
Fiscal Year LPG Import
1995-96 18,600
1996-97 21,824
1997-98 22,961
1998-99 25,019
1999-00 30,627
2000-01 40,102
2001-02 48,757
2002-03 56,097
2003-04 66,142
2004-05 77,594
2005-06 81,005
2006-07 93,562
2007-08 96,837
2008-09 115,813
2009-10 141,171
Tuesday, March 22, 2011
MICE is nice; incentive rulebook in the offing
SANGAM PRASAIN
KATHMANDU, MAR 23 -
The government is in the final stage of endorsing the guidelines for the meetings, incentives, conventions and exhibitions (MICE) incentive packages for the private sector aimed at boosting the Nepal Tourism
Year campaign, a government official said.
The government has also announced a grant of Rs 500,000 to any organiser holding meetings, seminars, workshops or interaction programmes involving at a time more than 100 foreign passport holders entering Nepal by air. The incentive will be provided within seven days of the completion of such programmes on submission of evidence and relevant documents.
According to a Finance Ministry official, a draft of the MICE guidelines has been forwarded to the cabinet for final approval. “The guidelines prepared by the Tourism Ministry have incorporated provisions for submitting a record of the programmes, invitations, visitor figures and copies of IDs and passports of participants, among other evidence, so as to be eligible to receive the incentive,” said Murari Bahadur Karki, joint secretary at the Tourism Ministry.
“The Finance Ministry forwarded the draft to the cabinet last week,” said a Finance Ministry official. The Tourism Ministry had sent the draft to the Finance Ministry a month ago. The government has announced that the incentive programme will run till the end of Nepal Tourism Year.
The government’s readiness to promote MICE tourism has encouraged tourism entrepreneurs. Hoteliers said that they had been receiving more corporate clients these days. International airlines and hotels have reported healthy bookings for the coming peak tourist season. They said that MICE programmes are also increasing compared to past years.
As of now, only Global Asia Tours and Travels has applied for the incentive. Entrepreneurs have criticized the delay in issuing the guidelines as three months have already passed since the announcement.
Mahendra Raj Poudel, managing director of Global Asia, said that it organized an international meet at the Soaltee. According to him, 163 visitors from different countries attended the programme.
Tourism entrepreneurs have said Nepal has a good chance of winning international bids for MICE, a high potential tourism segment, because of its scenic allure and improving political climate. They said that MICE tourism brings high-yield tourists and has no seasonal bottlenecks. 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 in the previous year. Also, workshops, trainings, interactions and cultural programmes made up most of the domestic MICE events.
In 1998, Nepal received 463,684 visitors with 24 percent of them preferring trekking, mountaineering, rafting and jungle safari as their purpose of visit while 11 percent put down business, official and conference as the purpose.
However, the conflict and deteriorating security situation took a heavy toll on tourist arrival and MICE was affected, tourism entrepreneurs said. MICE tourism was good in 2007 and 2008; it slumped in 2009 due to the global economic crisis but bounced back in 2010.
KATHMANDU, MAR 23 -
The government is in the final stage of endorsing the guidelines for the meetings, incentives, conventions and exhibitions (MICE) incentive packages for the private sector aimed at boosting the Nepal Tourism
Year campaign, a government official said.
The government has also announced a grant of Rs 500,000 to any organiser holding meetings, seminars, workshops or interaction programmes involving at a time more than 100 foreign passport holders entering Nepal by air. The incentive will be provided within seven days of the completion of such programmes on submission of evidence and relevant documents.
According to a Finance Ministry official, a draft of the MICE guidelines has been forwarded to the cabinet for final approval. “The guidelines prepared by the Tourism Ministry have incorporated provisions for submitting a record of the programmes, invitations, visitor figures and copies of IDs and passports of participants, among other evidence, so as to be eligible to receive the incentive,” said Murari Bahadur Karki, joint secretary at the Tourism Ministry.
“The Finance Ministry forwarded the draft to the cabinet last week,” said a Finance Ministry official. The Tourism Ministry had sent the draft to the Finance Ministry a month ago. The government has announced that the incentive programme will run till the end of Nepal Tourism Year.
The government’s readiness to promote MICE tourism has encouraged tourism entrepreneurs. Hoteliers said that they had been receiving more corporate clients these days. International airlines and hotels have reported healthy bookings for the coming peak tourist season. They said that MICE programmes are also increasing compared to past years.
As of now, only Global Asia Tours and Travels has applied for the incentive. Entrepreneurs have criticized the delay in issuing the guidelines as three months have already passed since the announcement.
Mahendra Raj Poudel, managing director of Global Asia, said that it organized an international meet at the Soaltee. According to him, 163 visitors from different countries attended the programme.
Tourism entrepreneurs have said Nepal has a good chance of winning international bids for MICE, a high potential tourism segment, because of its scenic allure and improving political climate. They said that MICE tourism brings high-yield tourists and has no seasonal bottlenecks. 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 in the previous year. Also, workshops, trainings, interactions and cultural programmes made up most of the domestic MICE events.
In 1998, Nepal received 463,684 visitors with 24 percent of them preferring trekking, mountaineering, rafting and jungle safari as their purpose of visit while 11 percent put down business, official and conference as the purpose.
However, the conflict and deteriorating security situation took a heavy toll on tourist arrival and MICE was affected, tourism entrepreneurs said. MICE tourism was good in 2007 and 2008; it slumped in 2009 due to the global economic crisis but bounced back in 2010.
Nepal well positioned to catch MICE
SANGAM PRASAIN
KATHMANDU, MARCH 12, 2010-
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.
KATHMANDU, MARCH 12, 2010-
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.
Monday, March 21, 2011
quake-hit japan to be less visible in Nepal
SANGAM PRASAIN
KATHMANDU, MAR 22 -
Nepal’s tourism has suffered a direct hit as a result of the devastating earthquake and tsunami in Japan. Travel trade entrepreneurs say that they are receiving increasing numbers of cancellations from Japanese tourists following the twin disasters. The tourism industry has received more than 1,000 cancellations from Japan so far.
March, April and May are the most popular months for Japanese visitors in Nepal, and the cancellations during the peak season mean business will be hurt bad. Travel traders say Japanese tourists are among the highest spenders in Nepal and they stay over a week.
According to official tourism statistics, Japan is the sixth largest source of air tourists for Nepal after India, China, the US, the UK and France. Nepal hosted 23,272 Japanese tourists in 2010, among whom 20,458 came by air.
“The unexpected cancellation of tours has hit our business,” said Shibesh Shrestha, managing director of C&K Nepal Travels and Tours, whose main clients are Japanese tour groups.
According to him, his agency has received 250 cancellations for March alone. “Although there were few tourists coming from Osaka, there are more cancellations from Tokyo and Hokkaido. All the bookings from Sendai have been cancelled,” said Shrestha.
The cancellations from Japan are expected to affect Nepal’s target of welcoming one million tourists in 2011. The Nepal Tourism Year implementation committee has planned to increase Japanese arrivals by 20 percent. Nepal received 3,755 Japanese tourists in the first two months of 2011 compared to 3,528 in the same period last year.
Along with tour operators, hotels are also seeing cancellation of reservations by Japanese tourists. “We received cancellations of 300 room nights within a week,” said Bharat Joshi, director, sales and marketing at the Hotel Yak & Yeti. He said that all the hotels were receiving cancellations, and that 600 room nights were expected to be cancelled this season.
“Japanese tourists are major customers for hotels spending over US$ 90 per day on accommodation,” Joshi said. He added that cancellations from Japan were expected to result in a drop in the Yak & Yeti’s business by 5 percent.
The Everest Hotel has reported that about 10 percent of its bookings from Japan have been cancelled. The hotel said it could not say if cancellations might increase.
The Radisson Hotel said that cancellations of hotel bookings were likely to be high due to the national grief in Japan. “We have not had such massive cancellations, but there have been some cancellations,” said Abinav Rana, general manager of the hotel.
The Shangri-La Hotel in Kathmandu and the Shangri-La in Pokhara do not have bookings from Japanese guests for March, said general manager Raju Bikram Shah.
Japanese tourists were among the major visitors to Nepal till 2001. However, after the Maoist conflict escalated, arrivals from Japan decreased significantly. Following the peace accord in 2006, the number of Japanese visitors rebounded. In 2007, there were 21,989 Japanese arrivals.
The Nepal Association of Tour Operators (NATO) has projected a 40 percent drop in Japanese tourists this year. The association said that the season for Japanese tourists had started, and that a crisis at the beginning of the season would hurt Nepal’s travel trade industry, particularly trekking and tours. “A Japanese tour group normally consists of 20 to 25 people, which now has fallen to nine to 10 people,” said NATO president Ashok Pokhrel.
KATHMANDU, MAR 22 -
Nepal’s tourism has suffered a direct hit as a result of the devastating earthquake and tsunami in Japan. Travel trade entrepreneurs say that they are receiving increasing numbers of cancellations from Japanese tourists following the twin disasters. The tourism industry has received more than 1,000 cancellations from Japan so far.
March, April and May are the most popular months for Japanese visitors in Nepal, and the cancellations during the peak season mean business will be hurt bad. Travel traders say Japanese tourists are among the highest spenders in Nepal and they stay over a week.
According to official tourism statistics, Japan is the sixth largest source of air tourists for Nepal after India, China, the US, the UK and France. Nepal hosted 23,272 Japanese tourists in 2010, among whom 20,458 came by air.
“The unexpected cancellation of tours has hit our business,” said Shibesh Shrestha, managing director of C&K Nepal Travels and Tours, whose main clients are Japanese tour groups.
According to him, his agency has received 250 cancellations for March alone. “Although there were few tourists coming from Osaka, there are more cancellations from Tokyo and Hokkaido. All the bookings from Sendai have been cancelled,” said Shrestha.
The cancellations from Japan are expected to affect Nepal’s target of welcoming one million tourists in 2011. The Nepal Tourism Year implementation committee has planned to increase Japanese arrivals by 20 percent. Nepal received 3,755 Japanese tourists in the first two months of 2011 compared to 3,528 in the same period last year.
Along with tour operators, hotels are also seeing cancellation of reservations by Japanese tourists. “We received cancellations of 300 room nights within a week,” said Bharat Joshi, director, sales and marketing at the Hotel Yak & Yeti. He said that all the hotels were receiving cancellations, and that 600 room nights were expected to be cancelled this season.
“Japanese tourists are major customers for hotels spending over US$ 90 per day on accommodation,” Joshi said. He added that cancellations from Japan were expected to result in a drop in the Yak & Yeti’s business by 5 percent.
The Everest Hotel has reported that about 10 percent of its bookings from Japan have been cancelled. The hotel said it could not say if cancellations might increase.
The Radisson Hotel said that cancellations of hotel bookings were likely to be high due to the national grief in Japan. “We have not had such massive cancellations, but there have been some cancellations,” said Abinav Rana, general manager of the hotel.
The Shangri-La Hotel in Kathmandu and the Shangri-La in Pokhara do not have bookings from Japanese guests for March, said general manager Raju Bikram Shah.
Japanese tourists were among the major visitors to Nepal till 2001. However, after the Maoist conflict escalated, arrivals from Japan decreased significantly. Following the peace accord in 2006, the number of Japanese visitors rebounded. In 2007, there were 21,989 Japanese arrivals.
The Nepal Association of Tour Operators (NATO) has projected a 40 percent drop in Japanese tourists this year. The association said that the season for Japanese tourists had started, and that a crisis at the beginning of the season would hurt Nepal’s travel trade industry, particularly trekking and tours. “A Japanese tour group normally consists of 20 to 25 people, which now has fallen to nine to 10 people,” said NATO president Ashok Pokhrel.
Saturday, March 19, 2011
Govt rolls back airfare hike in remote areas
SANGAM PRASAIN
KATHMANDU, MAR 18 -
Following criticism from remote people over hefty hike in airfares, the Ministry of Tourism and Civil Aviation (MoTCA) on Friday rolled back the hike in the remote sector.
A tripartite meeting between the Airlines Operators’ Association of Nepal (AOAN), lawmakers from the Karnali Region and tourism ministry under the coordination of Tourism Minister Khadga Bahadur Bishwokarma decided to roll back the hike and resume airlines operations halted in different remote districts.
For the last three weeks, locals in different remote sectors had been obstructing airports and air services demanding a roll back of the airfare hike. The ministry had approved the hiked fare rate on Feb. 16 on the recommendation of the Civil Aviation Authority of Nepal (CAAN). Private air operators had hiked airfares by 13 to 48 percent depending on the air distance. “The meeting has decided to find a solution to the issue within 15 days. However, as per the Friday’s decision, we have agreed to roll back the hike in remote sector—remote hub sector to remote areas,” said Suman Pandey, general secretary of AOAN.
The meeting also decided to form a high-level committee to resolve the issue under the coordination of MoTCA joint-secretary Ranjan Krishna Aryal. Other members of the committee include CAAN Deputy Director General Binod Gautam, Nepal Airlines Corporation Director Gobardan Khadka, and AOAN representatives Umesh Paneru and Pramod Pandey. “The high level committee will find out a solution to the issue. It will identify alternatives to the airfare hike and determine reasonable and affordable airfare for remote areas,” Pandey added.
Air services in four districts of Karnali Region had been affected due to locals’ protest. For the last three weeks, air services in Humla have totally halted. The ministry was forced review the fares after it received several memorandums from remote areas claiming that the current airfare was beyond the reach of the remote people, according to a government official.
Ministry officials say although the fare revised on Feb. 16 was reasonable, it affected remote passengers. As per the AOAN’s request and the provision that airfares should be reviewed every two years, the ministry had assigned CAAN to study technical aspects of the proposed fare hike four months ago. The airfare was reviewed last on Feb. 17, 2006. CAAN had proposed a hike in airfares in line with inflation and other major components.
Under the Nepal Rastra Bank’s inflation rate, other major components for an airfare review include direct fixed cost (aircraft lease cost, insurance, crew training, salary and allowances), direct variable cost (fuel, maintenance, landing, parking and navigation) and indirect operating cost (administration, agency commissions and overheads).
The AOAN had asked for an airfare review citing heavy lease tax, landing charge, parking charge, navigation charge, housing charge and other taxes.
KATHMANDU, MAR 18 -
Following criticism from remote people over hefty hike in airfares, the Ministry of Tourism and Civil Aviation (MoTCA) on Friday rolled back the hike in the remote sector.
A tripartite meeting between the Airlines Operators’ Association of Nepal (AOAN), lawmakers from the Karnali Region and tourism ministry under the coordination of Tourism Minister Khadga Bahadur Bishwokarma decided to roll back the hike and resume airlines operations halted in different remote districts.
For the last three weeks, locals in different remote sectors had been obstructing airports and air services demanding a roll back of the airfare hike. The ministry had approved the hiked fare rate on Feb. 16 on the recommendation of the Civil Aviation Authority of Nepal (CAAN). Private air operators had hiked airfares by 13 to 48 percent depending on the air distance. “The meeting has decided to find a solution to the issue within 15 days. However, as per the Friday’s decision, we have agreed to roll back the hike in remote sector—remote hub sector to remote areas,” said Suman Pandey, general secretary of AOAN.
The meeting also decided to form a high-level committee to resolve the issue under the coordination of MoTCA joint-secretary Ranjan Krishna Aryal. Other members of the committee include CAAN Deputy Director General Binod Gautam, Nepal Airlines Corporation Director Gobardan Khadka, and AOAN representatives Umesh Paneru and Pramod Pandey. “The high level committee will find out a solution to the issue. It will identify alternatives to the airfare hike and determine reasonable and affordable airfare for remote areas,” Pandey added.
Air services in four districts of Karnali Region had been affected due to locals’ protest. For the last three weeks, air services in Humla have totally halted. The ministry was forced review the fares after it received several memorandums from remote areas claiming that the current airfare was beyond the reach of the remote people, according to a government official.
Ministry officials say although the fare revised on Feb. 16 was reasonable, it affected remote passengers. As per the AOAN’s request and the provision that airfares should be reviewed every two years, the ministry had assigned CAAN to study technical aspects of the proposed fare hike four months ago. The airfare was reviewed last on Feb. 17, 2006. CAAN had proposed a hike in airfares in line with inflation and other major components.
Under the Nepal Rastra Bank’s inflation rate, other major components for an airfare review include direct fixed cost (aircraft lease cost, insurance, crew training, salary and allowances), direct variable cost (fuel, maintenance, landing, parking and navigation) and indirect operating cost (administration, agency commissions and overheads).
The AOAN had asked for an airfare review citing heavy lease tax, landing charge, parking charge, navigation charge, housing charge and other taxes.
Thursday, March 17, 2011
Govt to utilise unused railway corridor
SANGAM PRASAIN
KATHMANDU, MAR 18 -
Following the latest agreement with the Indian Oil Corporation to jointly construct the cross-border oil pipeline, the government is considering adopting less-costly approaches for acquiring land for the project.
The government is planning to use its land, which was earlier allocated to a railway corridor, for the Raxual-Amlekhgunj pipeline project. The railway corridor links Amlekhgunj with India’s Raxual via Birgunj. The corridor has so far remained unused.
Nepal Railway owns 400 bighas of land in Birgunj, Amlekhgunj, Raxual, Janakpur, according to Nepal Railway.
“As acquiring land from the public is problematic and costly, we are considering to the use the land allocated for railway,” said Purushottam Ojha, secretary of the Ministry of Commerce and Supplies.
However, the government is unaware about the condition the land and it plans to identify the real status of land soon. The government hopes that it will have to acquire little land from the public for the project if the railway corridor is used for the pipeline project. Of the 41 km pipeline, 39 kilometers lies on the Nepali side of border and the rest falls in India.
The two sides have agreed in principle that Nepal will bear the cost of the pipeline to be built in its territory and India will bear the cost of the project falling in its side.
During the bilateral talks between the Nepal Oil Corporation and Indian Oil Corporation in Mumbai on March 2, the two sides had agreed to form a joint committee to carry out works related to tender calling and procurement of construction materials for the project.
During the talks, the two sides had agreed to implement the project under separate ownership-joint operation model, dropping the previous idea of a joint venture.
The pipeline is expected to reduce transportation cost by 40-50 percent, control leakage and ensure hassle-free transfer and quality of petroleum products.
As per the detailed project report (DPR) compiled by the IOC, the NOC should lay down the pipeline 1.5 meters below the ground. For this, the DPR says NOC will not have to purchase land from individual land owners, but has to take the ‘right of way’ permission. However, owners should be compensated for the use of their land.
Land owners should be restricted from constructing permanent constructions within five meters on the either side of the pipeline alignment. They however, can till their land. However, as the government is planning to use its own land, it should not face many hassles in laying down the pipeline.
“We are not sure when the project will start,” said Secretary Ojha. He, however, said the project will be completed within one year of the beginning of construction work. The estimated cost of the project stands at Rs 1.6 billion, as per a survey carried out of by the IOC.
The IOC had first proposed the cross-border pipeline project in 1995. Following IOC’s proposal, the first MoU for the project was signed between NOC and IOC on September 1996 at junior executive level. In 2004 another agreement was reached at chief executive level.
KATHMANDU, MAR 18 -
Following the latest agreement with the Indian Oil Corporation to jointly construct the cross-border oil pipeline, the government is considering adopting less-costly approaches for acquiring land for the project.
The government is planning to use its land, which was earlier allocated to a railway corridor, for the Raxual-Amlekhgunj pipeline project. The railway corridor links Amlekhgunj with India’s Raxual via Birgunj. The corridor has so far remained unused.
Nepal Railway owns 400 bighas of land in Birgunj, Amlekhgunj, Raxual, Janakpur, according to Nepal Railway.
“As acquiring land from the public is problematic and costly, we are considering to the use the land allocated for railway,” said Purushottam Ojha, secretary of the Ministry of Commerce and Supplies.
However, the government is unaware about the condition the land and it plans to identify the real status of land soon. The government hopes that it will have to acquire little land from the public for the project if the railway corridor is used for the pipeline project. Of the 41 km pipeline, 39 kilometers lies on the Nepali side of border and the rest falls in India.
The two sides have agreed in principle that Nepal will bear the cost of the pipeline to be built in its territory and India will bear the cost of the project falling in its side.
During the bilateral talks between the Nepal Oil Corporation and Indian Oil Corporation in Mumbai on March 2, the two sides had agreed to form a joint committee to carry out works related to tender calling and procurement of construction materials for the project.
During the talks, the two sides had agreed to implement the project under separate ownership-joint operation model, dropping the previous idea of a joint venture.
The pipeline is expected to reduce transportation cost by 40-50 percent, control leakage and ensure hassle-free transfer and quality of petroleum products.
As per the detailed project report (DPR) compiled by the IOC, the NOC should lay down the pipeline 1.5 meters below the ground. For this, the DPR says NOC will not have to purchase land from individual land owners, but has to take the ‘right of way’ permission. However, owners should be compensated for the use of their land.
Land owners should be restricted from constructing permanent constructions within five meters on the either side of the pipeline alignment. They however, can till their land. However, as the government is planning to use its own land, it should not face many hassles in laying down the pipeline.
“We are not sure when the project will start,” said Secretary Ojha. He, however, said the project will be completed within one year of the beginning of construction work. The estimated cost of the project stands at Rs 1.6 billion, as per a survey carried out of by the IOC.
The IOC had first proposed the cross-border pipeline project in 1995. Following IOC’s proposal, the first MoU for the project was signed between NOC and IOC on September 1996 at junior executive level. In 2004 another agreement was reached at chief executive level.
Wednesday, March 2, 2011
NOC given Rs 1b loan to preempt fuel price hike
SANGAM PRASAIN
KATHMANDU, MAR 03 -
The government has once again bailed out cash-strapped Nepal Oil Corporation (NOC) with a loan of Rs 1.13 billion for one month. The credit has forestalled a planned fuel price hike by the state-owned oil monopoly.
Sources said the Ministry of Finance had agreed to provide the loan as asked by NOC. The bail-out is a non-budgetary expenditure of the government. “The decision to provide the loan was made at the political level,” said a senior ministry official. The loan file will be sent to the cabinet by the Ministry of Commerce and Supplies.
With the international oil price spiralling to a new high due to political turmoil in the Middle East and NOC’s losses mounting, it was under extreme pressure to increase fuel prices. It had presented two options to the government — bailing it out with a loan or allowing it to hike prices. The government has accepted the latter fearing a public backlash if prices were raised.
On Feb. 24, NOC sought a loan of Rs 1.30 billion from the government to maintain smooth supply of petroleum products if it was not to be allowed to revise fuel prices.
This is the second time this year that the government has approved a loan for NOC. Earlier, the ministry had provided credit worth Rs 1.30 billion (Rs 800 million from the Employee Provident Fund and Rs 500 million from the Citizen Investment Trust) to the corporation by putting up land belonging to Birgunj Sugar Mill and Sajha Yatayat as collateral. After Indian Oil Corporation (IOC) sent a new price list on March 1, NOC said it was incurring a loss of Rs 7.76 per litre on petrol, Rs 14.27 per litre on diesel, Rs 4.90 per litre on kerosene and Rs. 254.77 per cylinder on LPG. Earlier, its per litre losses on petrol and diesel were Rs 5.60 and Rs 11.31.
Though NOC is making a profit on aviation turbine fuel, its profit margin has declined from Rs 11 to Rs 6 per litre with IOC’s new tariff.
According to NOC, it will be bearing a loss on kerosene from this month with IOC’s new pricing. Earlier, it used to make a profit of Rs 0.80 per litre on kerosene.
NOC said its losses would reach Rs 1.33 billion per month. It had suffered a loss of Rs 740 million and Rs 1.13 billion in January and February respectively. The corporation had last hiked fuel prices on Dec. 6, 2010.
With the international oil price remaining volatile, the government’s latest rescue package may not be enough for NOC. Whether the government will continue the present policy of providing cash to NOC or allow prices to be raised remains a question.
“Allowing NOC to hike prices has now become a political decision in Nepal,” said a senior Finance Ministry official. “We can provide loans to NOC at the cost of the development budget, but that is not the right solution.”
KATHMANDU, MAR 03 -
The government has once again bailed out cash-strapped Nepal Oil Corporation (NOC) with a loan of Rs 1.13 billion for one month. The credit has forestalled a planned fuel price hike by the state-owned oil monopoly.
Sources said the Ministry of Finance had agreed to provide the loan as asked by NOC. The bail-out is a non-budgetary expenditure of the government. “The decision to provide the loan was made at the political level,” said a senior ministry official. The loan file will be sent to the cabinet by the Ministry of Commerce and Supplies.
With the international oil price spiralling to a new high due to political turmoil in the Middle East and NOC’s losses mounting, it was under extreme pressure to increase fuel prices. It had presented two options to the government — bailing it out with a loan or allowing it to hike prices. The government has accepted the latter fearing a public backlash if prices were raised.
On Feb. 24, NOC sought a loan of Rs 1.30 billion from the government to maintain smooth supply of petroleum products if it was not to be allowed to revise fuel prices.
This is the second time this year that the government has approved a loan for NOC. Earlier, the ministry had provided credit worth Rs 1.30 billion (Rs 800 million from the Employee Provident Fund and Rs 500 million from the Citizen Investment Trust) to the corporation by putting up land belonging to Birgunj Sugar Mill and Sajha Yatayat as collateral. After Indian Oil Corporation (IOC) sent a new price list on March 1, NOC said it was incurring a loss of Rs 7.76 per litre on petrol, Rs 14.27 per litre on diesel, Rs 4.90 per litre on kerosene and Rs. 254.77 per cylinder on LPG. Earlier, its per litre losses on petrol and diesel were Rs 5.60 and Rs 11.31.
Though NOC is making a profit on aviation turbine fuel, its profit margin has declined from Rs 11 to Rs 6 per litre with IOC’s new tariff.
According to NOC, it will be bearing a loss on kerosene from this month with IOC’s new pricing. Earlier, it used to make a profit of Rs 0.80 per litre on kerosene.
NOC said its losses would reach Rs 1.33 billion per month. It had suffered a loss of Rs 740 million and Rs 1.13 billion in January and February respectively. The corporation had last hiked fuel prices on Dec. 6, 2010.
With the international oil price remaining volatile, the government’s latest rescue package may not be enough for NOC. Whether the government will continue the present policy of providing cash to NOC or allow prices to be raised remains a question.
“Allowing NOC to hike prices has now become a political decision in Nepal,” said a senior Finance Ministry official. “We can provide loans to NOC at the cost of the development budget, but that is not the right solution.”
Tuesday, March 1, 2011
Casinos get reprieve as PAC decides to hold discussions
SANGAM PRASAIN
KATHMANDU, MAR 02 -
Eight casinos facing possible closure for defaulting on their royalty payments got a temporary reprieve on Tuesday with the parliamentary Public Accounts Committee (PAC) deciding to go for extensive discussions.
PAC’s move came amid growing pressure from casino trade unions who want action against the gambling houses to be delayed.
PAC’s latest stance has raised questions whether the casinos will actually be penalized. Earlier, it had taken a tough position even asking the government to scrap the licenses of those who flout government rules.
Lawmakers were divided into two groups at Tuesday’s meeting, one demanding that the licenses be scrapped immediately and the other suggesting further discussion. Lawmakers like Dhanraj Gurung and Lal Babu Pandit were for an immediate scrapping of the licenses while Deep Kumar Upadhyay, Prakash Chandra Lohani, Prem Bahadur Singh and Narayan Dahal were for holding more discussions.
With four among the eight casinos recommended for action by the Department of Revenue Investigation (DRI) having cleared their outstanding royalties and dues, the Tourism Ministry is in a dilemma whether to take action against all of them or only the four that haven’t paid their dues. Of late, trade unions affiliated to the casinos have intensified their lobbying with government officials and lawmakers to delay action.
Casino Anna has said that it would clear its remaining dues. Casino representatives told PAC that their management would be clearing the dues within a weak. “The new management is committed to clearing the liabilities,” said Hem Bahadur Rawal, representative of Casino Anna. “The government should consider the willingness of the new management.”
The Prime Minister’s Office (PMO) was expected to take action against the eight casinos on Monday. The Tourism Ministry on Feb. 27 had said that it would forward the file to chief secretary Madhav Prasad Ghimire on Feb. 28 for a final decision.
On Dec. 28, 2010, PAC had directed the government to cancel the licenses of all the casinos that failed to clear their dues within 35 days. Based on that directive, the DRI on Feb. 14 had formally requested the Tourism Ministry to take against the eight casinos.
Hoteliers housing the casinos said at Tuesday’s meeting that if the casino operators did not clear their dues, then they would pay them. However, they said that the onus for clearing the dues lies with the casino operators as they have been paying them in the past.
Lawmakers pointed out that the hotels should be made liable for the dues and royalties. “The hotels should not move away from their responsibility,” said lawmaker Prakash Chandra Lohani. Hotel Annapurna’s acting general manager Paras Rana told PAC that the hotel did not hold the operating license of Casino Anna. “The license belongs to Annapurna International that used to operate the hotel in the past,” said Rana.
However, Soaltee Hotel representative said that the government should first auction the properties owned by Nepal Recreation Centre (NRC) to recover unpaid dues.
According to him, if the money thus raised falls short of the payments owed, the hotels would be liable for the rest. Two casinos run by Rakesh Wadhwa’s NRC haven’t made any payments till date despite enormous pressure from the government.
Piyush Bahadur Amatya, chairman of the Fulbari Resort, said that the hotel management was forced to take ownership of the casinos after the casino operators failed to clear government dues and hotel rentals. Amatya asked for more time to clear the dues. As of now, the hotel has paid Rs 13 million to the government.
KATHMANDU, MAR 02 -
Eight casinos facing possible closure for defaulting on their royalty payments got a temporary reprieve on Tuesday with the parliamentary Public Accounts Committee (PAC) deciding to go for extensive discussions.
PAC’s move came amid growing pressure from casino trade unions who want action against the gambling houses to be delayed.
PAC’s latest stance has raised questions whether the casinos will actually be penalized. Earlier, it had taken a tough position even asking the government to scrap the licenses of those who flout government rules.
Lawmakers were divided into two groups at Tuesday’s meeting, one demanding that the licenses be scrapped immediately and the other suggesting further discussion. Lawmakers like Dhanraj Gurung and Lal Babu Pandit were for an immediate scrapping of the licenses while Deep Kumar Upadhyay, Prakash Chandra Lohani, Prem Bahadur Singh and Narayan Dahal were for holding more discussions.
With four among the eight casinos recommended for action by the Department of Revenue Investigation (DRI) having cleared their outstanding royalties and dues, the Tourism Ministry is in a dilemma whether to take action against all of them or only the four that haven’t paid their dues. Of late, trade unions affiliated to the casinos have intensified their lobbying with government officials and lawmakers to delay action.
Casino Anna has said that it would clear its remaining dues. Casino representatives told PAC that their management would be clearing the dues within a weak. “The new management is committed to clearing the liabilities,” said Hem Bahadur Rawal, representative of Casino Anna. “The government should consider the willingness of the new management.”
The Prime Minister’s Office (PMO) was expected to take action against the eight casinos on Monday. The Tourism Ministry on Feb. 27 had said that it would forward the file to chief secretary Madhav Prasad Ghimire on Feb. 28 for a final decision.
On Dec. 28, 2010, PAC had directed the government to cancel the licenses of all the casinos that failed to clear their dues within 35 days. Based on that directive, the DRI on Feb. 14 had formally requested the Tourism Ministry to take against the eight casinos.
Hoteliers housing the casinos said at Tuesday’s meeting that if the casino operators did not clear their dues, then they would pay them. However, they said that the onus for clearing the dues lies with the casino operators as they have been paying them in the past.
Lawmakers pointed out that the hotels should be made liable for the dues and royalties. “The hotels should not move away from their responsibility,” said lawmaker Prakash Chandra Lohani. Hotel Annapurna’s acting general manager Paras Rana told PAC that the hotel did not hold the operating license of Casino Anna. “The license belongs to Annapurna International that used to operate the hotel in the past,” said Rana.
However, Soaltee Hotel representative said that the government should first auction the properties owned by Nepal Recreation Centre (NRC) to recover unpaid dues.
According to him, if the money thus raised falls short of the payments owed, the hotels would be liable for the rest. Two casinos run by Rakesh Wadhwa’s NRC haven’t made any payments till date despite enormous pressure from the government.
Piyush Bahadur Amatya, chairman of the Fulbari Resort, said that the hotel management was forced to take ownership of the casinos after the casino operators failed to clear government dues and hotel rentals. Amatya asked for more time to clear the dues. As of now, the hotel has paid Rs 13 million to the government.
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