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.
Saturday, March 19, 2011
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.
Sunday, February 27, 2011
PMO to decide fate of casinos
SANGAM PRASAIN
KATHMANDU, FEB 28 -
With the deadline to furnish clarification ending on Sunday, the fate of eight casinos facing possible closure for non-payment of royalties, is now in the hands of the Prime Minister’s Office (PMO). The Ministry of Tourism and Civil Aviation (MoTCA) on Sunday said it would forward the file to chief secretary Madhav Prasad Ghimire on Monday.
With MoTCA still without a minister, the responsibility of moving against the casinos will now be taken over by the PMO. “As the prime minister is holding the responsibility of the Tourism Ministry, the fate of the eight casinos will be decided by the PMO,” said tourism secretary Kishore Thapa at a meeting of the parliamentary Public Accounts Committee (PAC) on Sunday.
The Department of Revenue Investigation (DRI) on Feb. 14 had formally requested the Tourism Ministry to take against the eight casinos as per PAC’s directives. On Dec. 28, 2010, PAC had instructed the government to revoke the licenses of those casinos that fail to pay their royalties and dues within 35 days.
Lawmakers on Sunday rapped the Tourism Ministry for not taking prompt action against the eight casinos as per DRI’s recommendation. They also sought the ministry’s clarification why it issued a show-cause notice.
They were also critical of the proposed casino guidelines that allows entry of Nepalis to casinos. “We won’t accept such a proposal of legalising the entry of Nepalis,” said lawmaker Hridayesh Tripathi. According to the draft guidelines, big taxpayers would be allowed to play in the gambling houses. “The government had issued operating licenses to the casinos to promote tourism by bringing foreigners, not Nepalis,” said another lawmaker Prem Bahadur Singh.
The Finance Ministry also stood against allowing Nepalis in casinos. “We (Finance Ministry) have clearly suggested that the Tourism Ministry should not legalise entry of Nepali citizens,” said revenue secretary Krishna Hari Banskota at the PAC meeting.
Tourism secretary Thapa said that the ministry would follow PAC directives while drafting the casino guidelines. MoTCA’s reluctance to stop mini casinos also attracted the wrath of lawmakers. PAC had earlier directed the ministry to shut down the mini casinos. “We will issue instructions to stop these mini casinos tomorrow,” said Thapa, responding to lawmakers’ queries.
There was a new twist in the casino episode on Sunday with four casinos, Casino Rad, Casino Venus, Casino Grand and Casino Shangri-La, clearing all their dues. These four casinos are in the list forward by the DRI to the Tourism Ministry for action. Casino Rad, Casino Venus, Casino Grand hadn’t cleared their interest fees for the current fiscal year when the DRI wrote to the ministry while Casino Shangri-La had paid the royalty for the current fiscal year only.
It is not clear whether action would be taken against these four casinos that have paid their dues. Tourism Ministry officials said they would abide by PAC’s directives. “As per the directives, the names of eight casinos would be forwarded to the PMO,” said Tourism Ministry spokesperson Laxman Bhattarai.
However, two casinos owned by Rakesh Wadhwa’s Nepal Recreation Centre haven’t cleared their dues till date. Wadhwa had indicated that he would pay the dues if the government provided a “conducive environment” for his return to Nepal. Wadhwa has been absconding ever since the police issued an arrest warrant against him. His two casinos, Casino Nepal and Casino Anna, owe the government Rs 244 million
in dues.
As per the Finance Bill, casinos that fail to clear their royalty payments by mid-January will lose their operating licenses. And those whose licenses have been scrapped should go for a new process to acquire licenses.
The government started tightening the screw against casinos six months ago after their repeated failure to clear royalties and dues. Their continued defiance of government orders to clear their dues and bar Nepalis from entering their premises even forced the government and PAC to explore the possibility of moving them out of Kathmandu. In a bid to regulate the casino business, PAC issued a series of directives to the government from drafting a Casino Act and working procedures for casinos to amending the existing Gambling Act.
KATHMANDU, FEB 28 -
With the deadline to furnish clarification ending on Sunday, the fate of eight casinos facing possible closure for non-payment of royalties, is now in the hands of the Prime Minister’s Office (PMO). The Ministry of Tourism and Civil Aviation (MoTCA) on Sunday said it would forward the file to chief secretary Madhav Prasad Ghimire on Monday.
With MoTCA still without a minister, the responsibility of moving against the casinos will now be taken over by the PMO. “As the prime minister is holding the responsibility of the Tourism Ministry, the fate of the eight casinos will be decided by the PMO,” said tourism secretary Kishore Thapa at a meeting of the parliamentary Public Accounts Committee (PAC) on Sunday.
The Department of Revenue Investigation (DRI) on Feb. 14 had formally requested the Tourism Ministry to take against the eight casinos as per PAC’s directives. On Dec. 28, 2010, PAC had instructed the government to revoke the licenses of those casinos that fail to pay their royalties and dues within 35 days.
Lawmakers on Sunday rapped the Tourism Ministry for not taking prompt action against the eight casinos as per DRI’s recommendation. They also sought the ministry’s clarification why it issued a show-cause notice.
They were also critical of the proposed casino guidelines that allows entry of Nepalis to casinos. “We won’t accept such a proposal of legalising the entry of Nepalis,” said lawmaker Hridayesh Tripathi. According to the draft guidelines, big taxpayers would be allowed to play in the gambling houses. “The government had issued operating licenses to the casinos to promote tourism by bringing foreigners, not Nepalis,” said another lawmaker Prem Bahadur Singh.
The Finance Ministry also stood against allowing Nepalis in casinos. “We (Finance Ministry) have clearly suggested that the Tourism Ministry should not legalise entry of Nepali citizens,” said revenue secretary Krishna Hari Banskota at the PAC meeting.
Tourism secretary Thapa said that the ministry would follow PAC directives while drafting the casino guidelines. MoTCA’s reluctance to stop mini casinos also attracted the wrath of lawmakers. PAC had earlier directed the ministry to shut down the mini casinos. “We will issue instructions to stop these mini casinos tomorrow,” said Thapa, responding to lawmakers’ queries.
There was a new twist in the casino episode on Sunday with four casinos, Casino Rad, Casino Venus, Casino Grand and Casino Shangri-La, clearing all their dues. These four casinos are in the list forward by the DRI to the Tourism Ministry for action. Casino Rad, Casino Venus, Casino Grand hadn’t cleared their interest fees for the current fiscal year when the DRI wrote to the ministry while Casino Shangri-La had paid the royalty for the current fiscal year only.
It is not clear whether action would be taken against these four casinos that have paid their dues. Tourism Ministry officials said they would abide by PAC’s directives. “As per the directives, the names of eight casinos would be forwarded to the PMO,” said Tourism Ministry spokesperson Laxman Bhattarai.
However, two casinos owned by Rakesh Wadhwa’s Nepal Recreation Centre haven’t cleared their dues till date. Wadhwa had indicated that he would pay the dues if the government provided a “conducive environment” for his return to Nepal. Wadhwa has been absconding ever since the police issued an arrest warrant against him. His two casinos, Casino Nepal and Casino Anna, owe the government Rs 244 million
in dues.
As per the Finance Bill, casinos that fail to clear their royalty payments by mid-January will lose their operating licenses. And those whose licenses have been scrapped should go for a new process to acquire licenses.
The government started tightening the screw against casinos six months ago after their repeated failure to clear royalties and dues. Their continued defiance of government orders to clear their dues and bar Nepalis from entering their premises even forced the government and PAC to explore the possibility of moving them out of Kathmandu. In a bid to regulate the casino business, PAC issued a series of directives to the government from drafting a Casino Act and working procedures for casinos to amending the existing Gambling Act.
Saturday, February 26, 2011
World canyoning event in Marsyangdi
SANGAM PRASAIN
KATHMANDU, FEB 25 -
The Nepal Canyoning Association (NCA) is scheduled to organize the International Canyoning Rendezvous (ICR) from April 7-13 at Syange, Germau in the Marsyangdi Valley which lies on the Annapurna trekking trail in Lamjung. Canyoning is travelling in canyons by walking, climbing, swimming and using other methods.
The NCA said that the event had been planned to lure adventure lovers as tourist tastes were changing and Nepal needed to be competitive in the international market. The association added that it aimed to bring 200 professional canyoneers from 12 countries.
“So far, 135 canyoneers from Europe and the US have registered for the event,” said NCA president Tilak Lama.
The week-long event will be conducted at Ghopte Khola, Kabindra Khola, Rundu Khola, Syange Khola and Sanche Phu.
“The ICR will be one of the highlighted products for Nepal Tourism Year 2011,” said Prachanda Man Shrestha, chief executive officer of the Nepal Tourism Board (NTB).
Shrestha added that the country would be organizing two-three international events each month to mark NTY, and that the ICR would be the April highlight. “Canyoning is one of the niche products of Nepal; and if properly managed, our country could be established as a canyoning destination.” The NCA seeks to establish Nepal as a Himalayan canyoning destination and package it with other adventure activities like trekking, rafting, rock climbing and mountaineering.
The NTB has enlisted canyoning as a potential product for NTY. The NCA has conducted canyoning exploration at what is probably the highest altitude in the world. A Nepali team explored the Lhayju River (480m) at Nar Phu, Manang in the Annapurna Himal where the base camp was situated at an altitude of 4,660 m and the canyon head was 5,200 m high.
The Bhote Koshi, Sun Koshi, Kakani and Manaslu are the major commercial canyoning destinations. Canyoning is an extreme adventure sport that involves abseiling, sliding, jumping into deep pools, swimming and climbing down waterfalls on steep canyon cliffs.
KATHMANDU, FEB 25 -
The Nepal Canyoning Association (NCA) is scheduled to organize the International Canyoning Rendezvous (ICR) from April 7-13 at Syange, Germau in the Marsyangdi Valley which lies on the Annapurna trekking trail in Lamjung. Canyoning is travelling in canyons by walking, climbing, swimming and using other methods.
The NCA said that the event had been planned to lure adventure lovers as tourist tastes were changing and Nepal needed to be competitive in the international market. The association added that it aimed to bring 200 professional canyoneers from 12 countries.
“So far, 135 canyoneers from Europe and the US have registered for the event,” said NCA president Tilak Lama.
The week-long event will be conducted at Ghopte Khola, Kabindra Khola, Rundu Khola, Syange Khola and Sanche Phu.
“The ICR will be one of the highlighted products for Nepal Tourism Year 2011,” said Prachanda Man Shrestha, chief executive officer of the Nepal Tourism Board (NTB).
Shrestha added that the country would be organizing two-three international events each month to mark NTY, and that the ICR would be the April highlight. “Canyoning is one of the niche products of Nepal; and if properly managed, our country could be established as a canyoning destination.” The NCA seeks to establish Nepal as a Himalayan canyoning destination and package it with other adventure activities like trekking, rafting, rock climbing and mountaineering.
The NTB has enlisted canyoning as a potential product for NTY. The NCA has conducted canyoning exploration at what is probably the highest altitude in the world. A Nepali team explored the Lhayju River (480m) at Nar Phu, Manang in the Annapurna Himal where the base camp was situated at an altitude of 4,660 m and the canyon head was 5,200 m high.
The Bhote Koshi, Sun Koshi, Kakani and Manaslu are the major commercial canyoning destinations. Canyoning is an extreme adventure sport that involves abseiling, sliding, jumping into deep pools, swimming and climbing down waterfalls on steep canyon cliffs.
Wadhwa to pay up if govt creates ‘conducive environment’
SANGAM PRASAIN
KATHMANDU, FEB 26 -
Beleaguered owner of Nepal Recreation Centre (NRC) Rakesh Wadhwa has expressed willingness to clear all the government dues provided that it creates a “conducive environment” for him to come to Nepal.
Wadhwa, who has been absconding for the last four months following an arrest warrant for non-payment of royalties by his casinos, said this to leaders of the trade unions at Casino Nepal who had gone to New Delhi to persuade him to clear the outstanding payments.
“If the government creates a conducive environment for me to return to Nepal, I will pay the money owed,” one trade union leader quoted Wadhwa as saying. With trade unions affiliated to the UCPN (Maoist) controlling some of Wadhwa’s casinos, he also sought non-interference from them in management.
The presidents of the four trade unions at Casino Nepal had travelled to New Delhi to talk with Wadhwa in the second week of February. “We held five rounds of meetings with Wadhwa in New Delhi,” said another union leader. With closure of the casinos looking imminent, union leaders had taken the initiative to persuade Wadhwa to honour the government directives.
It is still not clear whether Wadhwa’s “willingness” to clear the dues is genuine or a time-buying ploy. Earlier, he had disowned responsibility to clear the royalty dues and had instead said that the hotels should pay them as they had been issued the casino licenses.
Currently, the future of eight casinos including four of Wadhwa’s hangs in the balance. The Department of Revenue Investigation (DRI) has already recommended action against them to the Ministry of Tourism and Civil Aviation (MoTCA) for defaulting on their royalty payments. However, MoTCA has been without a minister due to delays in the expansion of Prime Minister Jhala Nath Khanal’s cabinet, preventing it from making any move. After Wadhwa spoke of his “willingness” to pay his dues, union leaders of the casinos started lobbying with the government and lawmakers to offer him an olive branch. They have met with Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari, tourism secretary Kishore Thapa and revenue secretary Krishna Hari Banskota.
“With the casinos providing employment to more than 8,000 people, their closure would hit all of us,” said a trade union leader. However, it is not clear whether the government would withdraw action against Wadhwa if he pays up.
Wadhwa’s NRC runs four casinos. Among them, Casino Everest and Casino Tara have been given a clean chit by the DRI. However, the other two, Casino Nepal and Casino Anna, have not paid any royalties or dues for the last few years and owe the government Rs 244 million. Recently, Wadhwa sold 50 percent of his stake in Casino Anna to two Indian buyers.
After the DRI’s recommendation for action, MoTCA had asked the eight casinos to furnish clarification within Feb. 27. The DRI said Casino Venus and Casino Rad paid around Rs 5 million of their outstanding dues by the deadline.
With the parliamentary Public Accounts Committee(PAC) taking a tough stance against the casinos for defaulting on their dues to the government and allowing Nepalis to enter their premises, MoTCA is currently giving the final shape to the casino guidelines. However, there are differences among the stakeholders over whether Nepalis should be allowed to enter the casinos or not. The draft of the guidelines has a provision to allow entrance to Nepalis falling under the big taxpayer category.
“The guidelines are almost ready, but different opinions over allowing Nepalis to play in casinos have stalled progress,” said a senior MoTCA official. “Except for the entry of Nepalis, other parts of the guidelines have been completed.”
The ministry will submit the draft of the guidelines to the Home Ministry and the Finance Ministry on Sunday for their suggestions and recommendation.
As per the proposal, the DRI will make available a list of big taxpayers eligible to play in casinos. The gambling houses are required to issue membership to them who will have to pay an entry fee of Rs 5,000 for a 24-hour pass.
KATHMANDU, FEB 26 -
Beleaguered owner of Nepal Recreation Centre (NRC) Rakesh Wadhwa has expressed willingness to clear all the government dues provided that it creates a “conducive environment” for him to come to Nepal.
Wadhwa, who has been absconding for the last four months following an arrest warrant for non-payment of royalties by his casinos, said this to leaders of the trade unions at Casino Nepal who had gone to New Delhi to persuade him to clear the outstanding payments.
“If the government creates a conducive environment for me to return to Nepal, I will pay the money owed,” one trade union leader quoted Wadhwa as saying. With trade unions affiliated to the UCPN (Maoist) controlling some of Wadhwa’s casinos, he also sought non-interference from them in management.
The presidents of the four trade unions at Casino Nepal had travelled to New Delhi to talk with Wadhwa in the second week of February. “We held five rounds of meetings with Wadhwa in New Delhi,” said another union leader. With closure of the casinos looking imminent, union leaders had taken the initiative to persuade Wadhwa to honour the government directives.
It is still not clear whether Wadhwa’s “willingness” to clear the dues is genuine or a time-buying ploy. Earlier, he had disowned responsibility to clear the royalty dues and had instead said that the hotels should pay them as they had been issued the casino licenses.
Currently, the future of eight casinos including four of Wadhwa’s hangs in the balance. The Department of Revenue Investigation (DRI) has already recommended action against them to the Ministry of Tourism and Civil Aviation (MoTCA) for defaulting on their royalty payments. However, MoTCA has been without a minister due to delays in the expansion of Prime Minister Jhala Nath Khanal’s cabinet, preventing it from making any move. After Wadhwa spoke of his “willingness” to pay his dues, union leaders of the casinos started lobbying with the government and lawmakers to offer him an olive branch. They have met with Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari, tourism secretary Kishore Thapa and revenue secretary Krishna Hari Banskota.
“With the casinos providing employment to more than 8,000 people, their closure would hit all of us,” said a trade union leader. However, it is not clear whether the government would withdraw action against Wadhwa if he pays up.
Wadhwa’s NRC runs four casinos. Among them, Casino Everest and Casino Tara have been given a clean chit by the DRI. However, the other two, Casino Nepal and Casino Anna, have not paid any royalties or dues for the last few years and owe the government Rs 244 million. Recently, Wadhwa sold 50 percent of his stake in Casino Anna to two Indian buyers.
After the DRI’s recommendation for action, MoTCA had asked the eight casinos to furnish clarification within Feb. 27. The DRI said Casino Venus and Casino Rad paid around Rs 5 million of their outstanding dues by the deadline.
With the parliamentary Public Accounts Committee(PAC) taking a tough stance against the casinos for defaulting on their dues to the government and allowing Nepalis to enter their premises, MoTCA is currently giving the final shape to the casino guidelines. However, there are differences among the stakeholders over whether Nepalis should be allowed to enter the casinos or not. The draft of the guidelines has a provision to allow entrance to Nepalis falling under the big taxpayer category.
“The guidelines are almost ready, but different opinions over allowing Nepalis to play in casinos have stalled progress,” said a senior MoTCA official. “Except for the entry of Nepalis, other parts of the guidelines have been completed.”
The ministry will submit the draft of the guidelines to the Home Ministry and the Finance Ministry on Sunday for their suggestions and recommendation.
As per the proposal, the DRI will make available a list of big taxpayers eligible to play in casinos. The gambling houses are required to issue membership to them who will have to pay an entry fee of Rs 5,000 for a 24-hour pass.
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