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.
Saturday, March 26, 2011
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.
Subscribe to:
Posts (Atom)