*
Travel agents fear that the move by airlines to fix the commission rate is a prelude to the introduction of the ‘transaction fee’ system
SANGAM PRASAIN
KATHMANDU, DEC 22 -
While airlines continue to call travel agents an integral part of their business, the agents are increasingly feeling they are not getting their due. The recent move by private carriers to fix the commission rates for travel agents has increased the distance between the two.
Buddha Air, Yeti Airlines, Guna Air and Agni Air have set the agent commission at its upper limit since Dec. 1. Airlines are considering fixing the commission at the upper limit of 12 percent for tickets sold in US dollars and 9 percent for tickets sold in local currency.
However, the commission on Buddha Air tickets has been fixed at 7 percent and on Yeti Airlines tickets at 11 percent. Earlier, travel agents pocketed a commission of 65 percent on tickets sold in US dollars and 15-20 percent on tickets sold in local currency. Although the commission had been set at 15-20 percent, travel agents were found to be raising their cut to as high as 55 percent when tickets were scarce.
Travel agents said that reducing the agency commission would not improve the airlines’ finance. “All the airlines do not have similar operational costs and markets, and the move to fix the commission is cartelling,” a travel agent said. Travellers and agencies fear that the standardised airfare policy would mean the end of competition among airlines regarding fares.
Although tourism associations have decided to adopt a “win-win situation” in response to the move, airlines said that they had been compelled to do so to stop uncontrolled overcharging by travel agents.
“We are discussing the proposal of travel agents regarding their concern on the cap on commissions, however, a decision is yet to be made,” said Prajwol Thapa, marketing manager of Guna Air.
A joint meeting of the Nepal Association of Tour Operators (NATO), the Trekking Agents Association of Nepal (TAAN) and the Nepal Association of Tour and Travel Agents (NATTA) recently decided to forward a proposal to create a win-win situation regarding commissions. However, they said that the airlines had not called them for a meeting yet.
These travel trade associations had requested the airlines to maintain the previous commission rate until December 2011 as changes in the commission and airfares would result in massive losses to tour and travel operators. “Travel agents are at loggerheads with airlines over the issue as the carriers have said that they would not change their decision,” said a travel agent.
Travel agents fear that the move by airlines to fix the commission rate is a prelude to the introduction of the “transaction fee” system where agents would charge their customers directly for services rendered and carriers would stop paying a commission altogether. While airlines claim that these are cost-cutting measures to help them get through the current economic situation, the agents are unhappy with their decision.
Recently, four private carriers had implemented uniform fares for flights between Kathmandu and Pokhara, Biratnagar, Bhairahawa, Nepalgunj, Bhadrapur and Dhangadhi. The fares have been adjusted to match Buddha Air’s tariff. The differences in ticket prices range from Rs 50 to Rs 300
Tuesday, December 21, 2010
Monday, December 20, 2010
Int’l air carriers in the pink, national flag carrier static
SANGAM PRASAIN
KATHMANDU, DEC 19 -
Thanks to increased air connectivity, Tribhuvan International Airport (TIA), the country’s only international airport, is witnessing an impressive growth both in tourist arrivals and aircraft movement.
TIA’s statistics show international passenger movement (arrival and departure) grew by 21 percent in the first nine months (January-September) of 2010. According to TIA’s Flight Permission Section, the airport saw movement of 1.71 million passengers during this period, up from 1.41 million during the corresponding period last year.
With more airlines starting their service to Kathmandu, international flight movements too have surged by 23 percent. In the first nine months this year, TIA saw 13,978 international flights compared to 11,329 during the corresponding period last year.
Bimlesh Lal Karna, chief of TIA’s Air Traffic Control said that the airport is handling more international flights these days, more than its average capacity. “The airport is handling as many as 50-60 international flights on some days,”
said Karna. The average capacity of the airport is 35-40 international flights. Now, 27 international airlines are operating their service in Nepal.
However, despite the increased flight frequency and passenger movement, the country’s national flag carrier—Nepal Airlines Corporation (NAC)—saw only a nine percent growth in these nine months. A total of 177,036 passengers traveled to and from the TIA on NAC flights.
The increased flight movement has only benefited the international airlines. In terms of passenger volume, Qatar Airways topped the chart with 215,117 passengers (a 21 percent increase) followed by Jet Airways and the NAC. Jet Airways’ passenger volume increased by 54 percent to 185,484 between January and September compared to 120,140 during the same period last year. Air Arabia and Etihad Airways were amongst the airlines that registered robust growth in terms of passenger movement in 2010. Air Arabia registered a 19 percent growth while Etihad Airways recorded a 40 percent growth in passenger movement.
However, three major international airlines—Gulf Air, Thai Airways and Indian Airlines—saw their passenger movement decline during this period compared to that of last year. Gulf Air carried 140,065 passengers, a decline of 17 percent.
Yet, increased flight movements have boosted the NAC’s revenue as it does the ground handing of all international airlines, The pressure on TIA to manage international and domestic flights is increasing.
According to TIA General Manager Dinesh Shrestha, the airport that had been designed to cater to only 1350 passengers per day is now catering to around 3,000 passengers daily on an average.
With TIA’s existing infrastructure and technology insufficient for managing the increased movement, international and domestic flights both are routinely getting delayed. A single aircraft needs at least 45 minutes to land and take off. However, both international and domestic flights are now delayed by over an hour these days. “It has seriously dented the image of TIA and its service delivery,” said a senior TIA official. “More traffic congestion at the airport has also raised the issue of aviation security.”
With surge in the number of international airlines, Civil Aviation Authority
of Nepal (CAAN) is now planning to run the airport round the clock. With
4-5 more international airlines planning to start their service to Nepal, the
CAAN has no option but to make TIA operational for 24 hours.
As of now, NAC, Dragon Air, Gulf Airways and Qatar Airways have night operation. “Given the difficult geographical terrain and inadequate airport infrastructure international airlines are reluctant to fly after 6 pm,” said Karna.
With Nepal celebrating 2011 as Nepal Tourism Year, there will be further increase in passenger movement at the TIA. Tourism officials are targeting at least 700,000 tourists via air in 2010. It has raised the serious question whether the TIA can manage such a flow of tourists in 2011, given the state of its infrastructure. However, Shrestha said that upscaling work is being carried out to manage the increased volume of air traffic.
INT’L AIRLINES PASSENGERS MOVEMENT (JAN-SEP)
Year 2010 Change (in percent)
Qatar Airways 215,117 21.75
Jet Airways 185,484 54.38
Nepal Airlines 177,036 9.04
Gulf Air 140,065 -17.80
Thai Airways 126,091 -6.15
Indian Airlines 123,084 -14.03
Air Arabia 109,780 19.43
Jet Lite 83,885 7.78
Etihad Airways 78,398 40.37
Biman Bangladesh 76,518 51.21
KATHMANDU, DEC 19 -
Thanks to increased air connectivity, Tribhuvan International Airport (TIA), the country’s only international airport, is witnessing an impressive growth both in tourist arrivals and aircraft movement.
TIA’s statistics show international passenger movement (arrival and departure) grew by 21 percent in the first nine months (January-September) of 2010. According to TIA’s Flight Permission Section, the airport saw movement of 1.71 million passengers during this period, up from 1.41 million during the corresponding period last year.
With more airlines starting their service to Kathmandu, international flight movements too have surged by 23 percent. In the first nine months this year, TIA saw 13,978 international flights compared to 11,329 during the corresponding period last year.
Bimlesh Lal Karna, chief of TIA’s Air Traffic Control said that the airport is handling more international flights these days, more than its average capacity. “The airport is handling as many as 50-60 international flights on some days,”
said Karna. The average capacity of the airport is 35-40 international flights. Now, 27 international airlines are operating their service in Nepal.
However, despite the increased flight frequency and passenger movement, the country’s national flag carrier—Nepal Airlines Corporation (NAC)—saw only a nine percent growth in these nine months. A total of 177,036 passengers traveled to and from the TIA on NAC flights.
The increased flight movement has only benefited the international airlines. In terms of passenger volume, Qatar Airways topped the chart with 215,117 passengers (a 21 percent increase) followed by Jet Airways and the NAC. Jet Airways’ passenger volume increased by 54 percent to 185,484 between January and September compared to 120,140 during the same period last year. Air Arabia and Etihad Airways were amongst the airlines that registered robust growth in terms of passenger movement in 2010. Air Arabia registered a 19 percent growth while Etihad Airways recorded a 40 percent growth in passenger movement.
However, three major international airlines—Gulf Air, Thai Airways and Indian Airlines—saw their passenger movement decline during this period compared to that of last year. Gulf Air carried 140,065 passengers, a decline of 17 percent.
Yet, increased flight movements have boosted the NAC’s revenue as it does the ground handing of all international airlines, The pressure on TIA to manage international and domestic flights is increasing.
According to TIA General Manager Dinesh Shrestha, the airport that had been designed to cater to only 1350 passengers per day is now catering to around 3,000 passengers daily on an average.
With TIA’s existing infrastructure and technology insufficient for managing the increased movement, international and domestic flights both are routinely getting delayed. A single aircraft needs at least 45 minutes to land and take off. However, both international and domestic flights are now delayed by over an hour these days. “It has seriously dented the image of TIA and its service delivery,” said a senior TIA official. “More traffic congestion at the airport has also raised the issue of aviation security.”
With surge in the number of international airlines, Civil Aviation Authority
of Nepal (CAAN) is now planning to run the airport round the clock. With
4-5 more international airlines planning to start their service to Nepal, the
CAAN has no option but to make TIA operational for 24 hours.
As of now, NAC, Dragon Air, Gulf Airways and Qatar Airways have night operation. “Given the difficult geographical terrain and inadequate airport infrastructure international airlines are reluctant to fly after 6 pm,” said Karna.
With Nepal celebrating 2011 as Nepal Tourism Year, there will be further increase in passenger movement at the TIA. Tourism officials are targeting at least 700,000 tourists via air in 2010. It has raised the serious question whether the TIA can manage such a flow of tourists in 2011, given the state of its infrastructure. However, Shrestha said that upscaling work is being carried out to manage the increased volume of air traffic.
INT’L AIRLINES PASSENGERS MOVEMENT (JAN-SEP)
Year 2010 Change (in percent)
Qatar Airways 215,117 21.75
Jet Airways 185,484 54.38
Nepal Airlines 177,036 9.04
Gulf Air 140,065 -17.80
Thai Airways 126,091 -6.15
Indian Airlines 123,084 -14.03
Air Arabia 109,780 19.43
Jet Lite 83,885 7.78
Etihad Airways 78,398 40.37
Biman Bangladesh 76,518 51.21
Saturday, December 18, 2010
A bumper harvest?
SANGAM PRASAIN
DEC 18 - First, the good news. This year, the production of our major food crops—rice and maize—grew by a whopping 11 percent, overcoming the food shortfall we had faced due to below-average monsoons. This growth comes on the back of a 4.33 percent fall in agricultural output last year, and economists agree that the rise in output means the Nepali economy will certainly grow this year.
Now, the bad news. This increase in output, and the subsequent food self-sufficiency, is not thanks to any government support. Instead, an above-average monsoon resulted in the growth. Government support to agriculture—in the form of subsidies and irrigational projects—may have risen, but only marginally. And farmers continue to move out of the sector because of low returns, high debts, and low productivity.
Because agriculture contributes nearly 32 percent to our Gross Domestic Product (GDP), the current rise in output of food crops will definitely have an impact on Nepal’s growth, giving rise to hopes that the country can achieve the 4.5 percent GDP growth rate projected for this year. However, the state’s focus has slowly been shifting away from agriculture, and this is highlighted by the meager increase in budgetary support to the sector: From 2.4 percent of the total budget in 2008-09, it increased to 3.1 percent in 2010-11. “The agricultural sector is seriously disadvantaged due to a lack of government attention,” says Hari Dahal, spokesperson at the Ministry of Agriculture and Cooperatives.
How did Nepal go from being one of the highest producers of rice in the region in the early 60s to becoming a net importer of food grains today? The answer, most experts agree, lies in the neglect the state showed the sector after donors stopped funding agriculture in the mid 90s. “Agriculture has been neglected for the last 10 years after donor agencies pulled out. The government, instead of increasing its support, withdrew its fertiliser subsidies in 1996-97,” says Devendra Chapagain, former member of the National Planning Commission.
The withdrawal of subsidies came as the state started adopting more neo-liberal policies. It opened the doors to private players for importing fertilisers. “Consumption of fertilisers grew heavily when the private sectors started import. However, these imports lasted only for a short time as the Indian government started a heavy subsidy programme for its farmers,” says Dahal, adding that the price of imported fertilisers rose heavily forcing private players to stop their imports. At the same time, government subsidy to shallow tubewells also stopped.
The government’s withdrawal of state support meant that agriculture today is wholly dependent on the state of the monsoons. “Agricultural growth depends according to nature. If it rains, we have a good harvest. If it doesn’t, we have a bad year,” says Chapagain.
The rise in production of paddy and maize this year—courtesy good rains—means the country will produce an additional 436,000 and 200,000 tonnes of the two grains respectively. This increase comes on the back of a shortfall of 316,465 tonnes of grains last year, because of which at least 1.6 million people had to face a severe food shortage. As major food grain production also has a direct impact on the country’s GDP, planners and analysts say that the targeted 4.5 percent economic growth could be realised this year because of the increased production, despite the other economic indicators not doing too well. “Increased food grain production will raise the country’s GDP by 0.5 percent at least,” says economist Bishwamber Pyakurel.
However, this rise in production is a sweetener only for the short term. For, more and more farmers are leaving the sector for good as they suffer a vicious cycle of low returns on production, and rising debts and following bankruptcy. “Rice farmers in Nepal have never been adequately compensated. Low returns from the sector have forced the younger generation to abandon the profession altogether,” says Dahal.
Though the government initiated the distribution of fertilisers at subsidised rates from last year, the 81,598 tonnes of fertilisers distributed only fulfill the requirement of 5 percent of total demand. The state also distributed 826 tonnes of improved seeds, and allocated Rs. 3 billion to agricultural subsidies in the form of lower fertiliser prices and small irrigation
projects. Conversion to hybrid, higher-yielding, variety of seeds is also very slow, and like last year’s protests by Tarai maize farmers showed, not all hybrid seeds are achieving the results promised.
The state has also not delivered irrigation projects as required by the sector. Of the total cultivated area in Nepal, only 15 percent of the land can be irrigated all year round. But irrigation projects are themselves underutilised. Only about 1.1 million hectares of the total of about 3 million hectares of arable land have irrigation facilities. For example, the Koshi Pump Irrigation Project has a capacity to irrigate 4,100 hectares of land, but its coverage is limited to only 40 percent of that capacity.
A simple analysis of the numbers of paddy, which is our major crop, puts this into perspective. While production and yield has risen, the area under cultivation has remained nearly the same. For example, in 1999-2000, the area under paddy cultivation was 1.55 million hectares, which actually declined to 1.43 million hectares in 2006-07 before rising to 1.55 million hectares again in 2008-09. Analysts point towards the massive decline in the expenditure on the agricultural sector since the 1980s as being a major reason why agriculture today is suffering this state of dichotomy. From as much as a third of the expenditure being spent on agriculture in the 1980s, the share fell to as little as 5 percent in the 1990s. This trend is continuing even now, revealing a drastic shift in economic policy.
Agriculture still employs 66 percent of the total workforce in Nepal, which means that the livelihood of two-thirds of Nepalis depends on the sector. A shift in the economic outlook of the state towards manufacturing and services in the early 90s meant that the sector continued to witness neglect, and inevitably, decline. Though the increase in food production this year comes as a glimmer of hope, most analysts agree that not enough is being done to sustain the sector, which continues to depend on one single source of irrigation—the monsoons—till now. As witnessed last year, a drop in rainfall led to a severe food shortage, and although that has been corrected, what will Nepal do if a season of drought comes up?
DEC 18 - First, the good news. This year, the production of our major food crops—rice and maize—grew by a whopping 11 percent, overcoming the food shortfall we had faced due to below-average monsoons. This growth comes on the back of a 4.33 percent fall in agricultural output last year, and economists agree that the rise in output means the Nepali economy will certainly grow this year.
Now, the bad news. This increase in output, and the subsequent food self-sufficiency, is not thanks to any government support. Instead, an above-average monsoon resulted in the growth. Government support to agriculture—in the form of subsidies and irrigational projects—may have risen, but only marginally. And farmers continue to move out of the sector because of low returns, high debts, and low productivity.
Because agriculture contributes nearly 32 percent to our Gross Domestic Product (GDP), the current rise in output of food crops will definitely have an impact on Nepal’s growth, giving rise to hopes that the country can achieve the 4.5 percent GDP growth rate projected for this year. However, the state’s focus has slowly been shifting away from agriculture, and this is highlighted by the meager increase in budgetary support to the sector: From 2.4 percent of the total budget in 2008-09, it increased to 3.1 percent in 2010-11. “The agricultural sector is seriously disadvantaged due to a lack of government attention,” says Hari Dahal, spokesperson at the Ministry of Agriculture and Cooperatives.
How did Nepal go from being one of the highest producers of rice in the region in the early 60s to becoming a net importer of food grains today? The answer, most experts agree, lies in the neglect the state showed the sector after donors stopped funding agriculture in the mid 90s. “Agriculture has been neglected for the last 10 years after donor agencies pulled out. The government, instead of increasing its support, withdrew its fertiliser subsidies in 1996-97,” says Devendra Chapagain, former member of the National Planning Commission.
The withdrawal of subsidies came as the state started adopting more neo-liberal policies. It opened the doors to private players for importing fertilisers. “Consumption of fertilisers grew heavily when the private sectors started import. However, these imports lasted only for a short time as the Indian government started a heavy subsidy programme for its farmers,” says Dahal, adding that the price of imported fertilisers rose heavily forcing private players to stop their imports. At the same time, government subsidy to shallow tubewells also stopped.
The government’s withdrawal of state support meant that agriculture today is wholly dependent on the state of the monsoons. “Agricultural growth depends according to nature. If it rains, we have a good harvest. If it doesn’t, we have a bad year,” says Chapagain.
The rise in production of paddy and maize this year—courtesy good rains—means the country will produce an additional 436,000 and 200,000 tonnes of the two grains respectively. This increase comes on the back of a shortfall of 316,465 tonnes of grains last year, because of which at least 1.6 million people had to face a severe food shortage. As major food grain production also has a direct impact on the country’s GDP, planners and analysts say that the targeted 4.5 percent economic growth could be realised this year because of the increased production, despite the other economic indicators not doing too well. “Increased food grain production will raise the country’s GDP by 0.5 percent at least,” says economist Bishwamber Pyakurel.
However, this rise in production is a sweetener only for the short term. For, more and more farmers are leaving the sector for good as they suffer a vicious cycle of low returns on production, and rising debts and following bankruptcy. “Rice farmers in Nepal have never been adequately compensated. Low returns from the sector have forced the younger generation to abandon the profession altogether,” says Dahal.
Though the government initiated the distribution of fertilisers at subsidised rates from last year, the 81,598 tonnes of fertilisers distributed only fulfill the requirement of 5 percent of total demand. The state also distributed 826 tonnes of improved seeds, and allocated Rs. 3 billion to agricultural subsidies in the form of lower fertiliser prices and small irrigation
projects. Conversion to hybrid, higher-yielding, variety of seeds is also very slow, and like last year’s protests by Tarai maize farmers showed, not all hybrid seeds are achieving the results promised.
The state has also not delivered irrigation projects as required by the sector. Of the total cultivated area in Nepal, only 15 percent of the land can be irrigated all year round. But irrigation projects are themselves underutilised. Only about 1.1 million hectares of the total of about 3 million hectares of arable land have irrigation facilities. For example, the Koshi Pump Irrigation Project has a capacity to irrigate 4,100 hectares of land, but its coverage is limited to only 40 percent of that capacity.
A simple analysis of the numbers of paddy, which is our major crop, puts this into perspective. While production and yield has risen, the area under cultivation has remained nearly the same. For example, in 1999-2000, the area under paddy cultivation was 1.55 million hectares, which actually declined to 1.43 million hectares in 2006-07 before rising to 1.55 million hectares again in 2008-09. Analysts point towards the massive decline in the expenditure on the agricultural sector since the 1980s as being a major reason why agriculture today is suffering this state of dichotomy. From as much as a third of the expenditure being spent on agriculture in the 1980s, the share fell to as little as 5 percent in the 1990s. This trend is continuing even now, revealing a drastic shift in economic policy.
Agriculture still employs 66 percent of the total workforce in Nepal, which means that the livelihood of two-thirds of Nepalis depends on the sector. A shift in the economic outlook of the state towards manufacturing and services in the early 90s meant that the sector continued to witness neglect, and inevitably, decline. Though the increase in food production this year comes as a glimmer of hope, most analysts agree that not enough is being done to sustain the sector, which continues to depend on one single source of irrigation—the monsoons—till now. As witnessed last year, a drop in rainfall led to a severe food shortage, and although that has been corrected, what will Nepal do if a season of drought comes up?
Improve air safety: ICAO to govt
SANGAM PRASAIN
KATHMANDU, DEC 18 -
In view of increasing accidents in air transport in Nepal, the International Civil Aviation Organization (ICAO) has urged the Government of Nepal to adopt a deliberate approach for air safety improvement.
ICAO’s Asia Pacific Region Regional Director Ahmad Mukhtar Awan on Friday met Prime Minister Madhav Nepal and urged him to take appropriate measures to ensure aviation safety, said Rajan Bhattarai, the PM’s foreign affairs advisor.
In the meeting, Awan said Nepal needs to focus on expanding infrastructure at the Tribhuvan International Airport (TIA) in view of the increasing air traffic. “We are ready to support the Government of Nepal in this regard,” Bhattarai quoted Awan as saying. The Global Aviation Safety Plan (GASP) articulates ICAO’s strategy to guide prioritization and implementation of its global safety initiatives. Between 2000 and 2009, the total number of fatal accidents on commercial scheduled flights dropped by 50 percent and the corresponding number of fatalities by 31 percent.
According to ICAO, the overall level of safety in international civil aviation is remarkable, with a global accident rate of approximately four accidents per million departures.
The ICAO says that with the anticipated increase in traffic volume throughout this decade , a steady accident rate will translate into a greater number of accidents. Currently, two out of seven ICAO regions have an accident rate that is twice the world average. In the context of Nepal, within four month the country’s aviation sector has witnessed three major fatalities and a number of minor mishaps. Three major air accidents in four months have claimed 38 lives.
“We talked about the immediate need to ensure well-coordinated relations between the industry and its regulator,” Awan told the media.
The ICAO forecast reveals worldwide air traffic to grow at the rate of 6.4 percent this year, 4.7 percent in 2011 and 4.9 percent in 2012. Traffic for Asia Pacific airlines should grow considerably faster than the global aviation pace at rates 10.8, 7.8 and 7.75 percent for the same period. In the context of Nepal, international passenger movement recorded an 11 percent and domestic passenger movement a 33 percent increase in 2009 as compared to 2008.
KATHMANDU, DEC 18 -
In view of increasing accidents in air transport in Nepal, the International Civil Aviation Organization (ICAO) has urged the Government of Nepal to adopt a deliberate approach for air safety improvement.
ICAO’s Asia Pacific Region Regional Director Ahmad Mukhtar Awan on Friday met Prime Minister Madhav Nepal and urged him to take appropriate measures to ensure aviation safety, said Rajan Bhattarai, the PM’s foreign affairs advisor.
In the meeting, Awan said Nepal needs to focus on expanding infrastructure at the Tribhuvan International Airport (TIA) in view of the increasing air traffic. “We are ready to support the Government of Nepal in this regard,” Bhattarai quoted Awan as saying. The Global Aviation Safety Plan (GASP) articulates ICAO’s strategy to guide prioritization and implementation of its global safety initiatives. Between 2000 and 2009, the total number of fatal accidents on commercial scheduled flights dropped by 50 percent and the corresponding number of fatalities by 31 percent.
According to ICAO, the overall level of safety in international civil aviation is remarkable, with a global accident rate of approximately four accidents per million departures.
The ICAO says that with the anticipated increase in traffic volume throughout this decade , a steady accident rate will translate into a greater number of accidents. Currently, two out of seven ICAO regions have an accident rate that is twice the world average. In the context of Nepal, within four month the country’s aviation sector has witnessed three major fatalities and a number of minor mishaps. Three major air accidents in four months have claimed 38 lives.
“We talked about the immediate need to ensure well-coordinated relations between the industry and its regulator,” Awan told the media.
The ICAO forecast reveals worldwide air traffic to grow at the rate of 6.4 percent this year, 4.7 percent in 2011 and 4.9 percent in 2012. Traffic for Asia Pacific airlines should grow considerably faster than the global aviation pace at rates 10.8, 7.8 and 7.75 percent for the same period. In the context of Nepal, international passenger movement recorded an 11 percent and domestic passenger movement a 33 percent increase in 2009 as compared to 2008.
Lawmakers demand transparency in NOC
SANGAM PRASAIN
KATHMANDU, DEC 17 -
Lawmakers on Thursday said the government’s subsidy policy on LP gas was not in favour of consumers and is only benefiting industries.
The government refunds the Value Added Tax (VAT) levied on LP gas purchased for industrial purpose only. Lawmakers said that the consumers, who use a maximum of two-three cylinders per month, should not be compelled to
bear the burden for the facility given to industries.
The government collects Rs 207 per cylinder as tax, of which Rs 149 is collected as VAT. The government had included LP gas in the list of daily essential items.
“VAT levied on LP gas purchased for industrial purpose is refundable, but the government’s opposite tax policy is burdening poor consumers,” said CPN-UML lawmaker Rabindra Adhikari, while discussing the price hike on petroleum products at the Parliament’s Public Account Committee (PAC).
The PAC had summoned Minister for Commerce and Supplies Rajendra and officials from Nepal Oil Corporation (NOC) to justify the recent gasoline price hike.
Minister Mahato also admitted that the government subsidy policy was opposite. “The government should introduce subsidy on LP gas for the consumers as in India,” said Mahato.
He added that the ministry is holding discussions with the finance ministry on the issue. The waiver in VAT will drop the gas price by at least Rs 40 per cylinder, he said. Of the total imported gas, 30 percent is consumed by industries. The country consumes one million gas cylinders every month.
Amid pressure from the
political parties, student
unions and consumer rights activists to revise the petroleum
products price hike, Mahato said the price revision is possible only if the government excuses the tax levied under the head of road maintenance and upgrading or scrap the VAT.
Petroleum products are the government’s largest revenue generating commodities. Last fiscal year, NOC paid Rs 12.41 billion revenue. The country consumes gasoline worth Rs 60 billion every year.
During the meeting, lawmakers said corruption, commissions and irregularities were the reasons behind NOC’s ballooning losses every year. “Rampant irregularities in NOC have compelled consumers to suffer from price hike,” said Adhikari.
Dhan Raj Gurung, lawmaker of Nepali Congress, stressed on the need for forming a separate independent board that would make the fuel prices more transparent and discuss all the alternative measures for price revision and adjustment. “Although, the state-owned oil monopoly is being cash-strapped every passing years, its officials are found to be well-off,” said Keshav Nepal, the UCPN-Maoist lawmaker.
Nepal added that an immediate measure should be introduced to make the corporation more transparent and punish the officials involved in corruption and commissions.
Purushottam Ojha, secretary at the ministry of supplies and the chairman of the NOC, said the government should end the monopoly of NOC in fuel distribution and involve the private sector in this business.
Ojha added that NOC is in the process of developing oil pipeline that will end the rampant fuel adulteration and high transportation cost. Although the oil pipeline project was initiated long time ago, change in its modality has frequently delayed the construction.
“NOC delegations to finalise the oil pipeline modality are departing to India in January,” Ojha said.
KATHMANDU, DEC 17 -
Lawmakers on Thursday said the government’s subsidy policy on LP gas was not in favour of consumers and is only benefiting industries.
The government refunds the Value Added Tax (VAT) levied on LP gas purchased for industrial purpose only. Lawmakers said that the consumers, who use a maximum of two-three cylinders per month, should not be compelled to
bear the burden for the facility given to industries.
The government collects Rs 207 per cylinder as tax, of which Rs 149 is collected as VAT. The government had included LP gas in the list of daily essential items.
“VAT levied on LP gas purchased for industrial purpose is refundable, but the government’s opposite tax policy is burdening poor consumers,” said CPN-UML lawmaker Rabindra Adhikari, while discussing the price hike on petroleum products at the Parliament’s Public Account Committee (PAC).
The PAC had summoned Minister for Commerce and Supplies Rajendra and officials from Nepal Oil Corporation (NOC) to justify the recent gasoline price hike.
Minister Mahato also admitted that the government subsidy policy was opposite. “The government should introduce subsidy on LP gas for the consumers as in India,” said Mahato.
He added that the ministry is holding discussions with the finance ministry on the issue. The waiver in VAT will drop the gas price by at least Rs 40 per cylinder, he said. Of the total imported gas, 30 percent is consumed by industries. The country consumes one million gas cylinders every month.
Amid pressure from the
political parties, student
unions and consumer rights activists to revise the petroleum
products price hike, Mahato said the price revision is possible only if the government excuses the tax levied under the head of road maintenance and upgrading or scrap the VAT.
Petroleum products are the government’s largest revenue generating commodities. Last fiscal year, NOC paid Rs 12.41 billion revenue. The country consumes gasoline worth Rs 60 billion every year.
During the meeting, lawmakers said corruption, commissions and irregularities were the reasons behind NOC’s ballooning losses every year. “Rampant irregularities in NOC have compelled consumers to suffer from price hike,” said Adhikari.
Dhan Raj Gurung, lawmaker of Nepali Congress, stressed on the need for forming a separate independent board that would make the fuel prices more transparent and discuss all the alternative measures for price revision and adjustment. “Although, the state-owned oil monopoly is being cash-strapped every passing years, its officials are found to be well-off,” said Keshav Nepal, the UCPN-Maoist lawmaker.
Nepal added that an immediate measure should be introduced to make the corporation more transparent and punish the officials involved in corruption and commissions.
Purushottam Ojha, secretary at the ministry of supplies and the chairman of the NOC, said the government should end the monopoly of NOC in fuel distribution and involve the private sector in this business.
Ojha added that NOC is in the process of developing oil pipeline that will end the rampant fuel adulteration and high transportation cost. Although the oil pipeline project was initiated long time ago, change in its modality has frequently delayed the construction.
“NOC delegations to finalise the oil pipeline modality are departing to India in January,” Ojha said.
Thursday, December 16, 2010
Tara Air plane with 22 people aboard missing
SANGAM PRASAIN
KATHMANDU, DEC 15 - An aircraft owned by Tara air has gone missing after it took off from Lamidanda airport in Khotang district on Wednesday.
The 9N-AFX Twin-Otter plane with 22 people onboard—three crew members, 19 passengers—left the airport for the Capital at 3.10 this afternoon, Khotang district DSP Tek Bahadur Tamang informed. One of the passengers is a foreigner.
Most of the passengers were returning from a pilgrimage to famous Hindu shrine of Halesimahadev—temple of lord shiva.
Captain AR Shakya, his assistant Satindra Shrestha, and airhostess AS Gurung, were among the crew members.
The missing passengers have been identified as Ji Sherpa, Ke Sherpa, S Tamang, A Tamang, RT Tamang, TG Lama, KW Lama, P Tamang, KN Lama, ZD Sherpa, LW Sherpa, SB Lama, T Sherpa, Miss TY Sherpa, PW Tamang, TB Tamang, TW Sherpa and a foreigner, whose nationality has not been ascertained yet.
The aircraft lost contact with the air traffic control tower, five minutes after the take-off. DSP Tamang said efforts are underway to locate the missing plane.
According to TIA officials, a flight from Lamidanda to Kathmandu takes around 35 minutes.
Meanwhile, Nepal Army (NA) spokesperson Ramindra Chhetri though a NA plane is ready to take off for the rescue, it has not left due to unfavourable weather.
“A night-vision aircraft is all ready but it has not taken off owing to low visibility,” said Chhetri.
Famous for its rugged and mountainous terrain, Nepal has dubious safety record when it comes to internal aviation.
Less than two months ago, a chopper bound for Mt. Amadablam crashed at the base camp of the mountain in Solukhumbu district. And five months ago, an Agni Air Dornier en route to the Everest region from the capital crashed in Makawanpur, killing everyone onboard.
KATHMANDU, DEC 15 - An aircraft owned by Tara air has gone missing after it took off from Lamidanda airport in Khotang district on Wednesday.
The 9N-AFX Twin-Otter plane with 22 people onboard—three crew members, 19 passengers—left the airport for the Capital at 3.10 this afternoon, Khotang district DSP Tek Bahadur Tamang informed. One of the passengers is a foreigner.
Most of the passengers were returning from a pilgrimage to famous Hindu shrine of Halesimahadev—temple of lord shiva.
Captain AR Shakya, his assistant Satindra Shrestha, and airhostess AS Gurung, were among the crew members.
The missing passengers have been identified as Ji Sherpa, Ke Sherpa, S Tamang, A Tamang, RT Tamang, TG Lama, KW Lama, P Tamang, KN Lama, ZD Sherpa, LW Sherpa, SB Lama, T Sherpa, Miss TY Sherpa, PW Tamang, TB Tamang, TW Sherpa and a foreigner, whose nationality has not been ascertained yet.
The aircraft lost contact with the air traffic control tower, five minutes after the take-off. DSP Tamang said efforts are underway to locate the missing plane.
According to TIA officials, a flight from Lamidanda to Kathmandu takes around 35 minutes.
Meanwhile, Nepal Army (NA) spokesperson Ramindra Chhetri though a NA plane is ready to take off for the rescue, it has not left due to unfavourable weather.
“A night-vision aircraft is all ready but it has not taken off owing to low visibility,” said Chhetri.
Famous for its rugged and mountainous terrain, Nepal has dubious safety record when it comes to internal aviation.
Less than two months ago, a chopper bound for Mt. Amadablam crashed at the base camp of the mountain in Solukhumbu district. And five months ago, an Agni Air Dornier en route to the Everest region from the capital crashed in Makawanpur, killing everyone onboard.
Aircraft missing with 22 on board
SANGAM PRASAIN
KATHMANDU, DEC 15 -
A Twin Otter aircraft belonging to Tara Air went missing on Wednesday with 22 people on board. The Rescue Coordination Centre at the Tribhuvan International Airport (TIA) suspected that the aircraft crashed in Kunta Devi Village Development Committee in Okhaldhunga district.
Spokesperson at the Ministry of Tourism and Civil Aviation Laxman Prasad Bhattarai said they are yet to confirm if the aircraft that took off from Lamidanda in Khotang district to Kathmandu crashed. According to him, helicopters have been sent to look for the missing aircraft. However, the search mission was cancelled late in the evening due to heavy clouds.
According to the Post’s Khotang correspondent, Deputy Superintendent of Police Tek Bahadur Tamang said the plane did not land in any airport nearby.
The aircraft took off at 03: 08 p.m. and was scheduled to land in Kathmandu at 8: 40 p.m.
Along with Captain Anup Raj Shakya, Co-pilot Sachindra Shrestha and Air Hostess Sudiksha Gurung, there were 18 Bhutanese and one foreigner in the flight, the airline said. The Bhutanese were in Nepal to take part in the SAARC Trade Fair in Kathmandu.
Locals of Okhaldhunga said they heard a loud sound across Musunga Khola. “Police and Army personnel have been sent to comb the area,” chief of the Air Traffic Control (ATC) at the TIA, Kamlesh Lal Karna, quoted the CDO of Okhaldhunga as saying.
ATC officer at the Kathmandu airport, Bhes Raj Adhikari, said the pilot had contacted the tower at around 03: 13 pm as part of its regular reporting and no technical difficulties had been reported then. While the weather in the sector was fair, the ATC declared an emergency when the flight failed to establish contact for almost 30 minutes.
General Manager at the TIA Dinesh Shrestha said the search mission will continue on Thursday morning.
KATHMANDU, DEC 15 -
A Twin Otter aircraft belonging to Tara Air went missing on Wednesday with 22 people on board. The Rescue Coordination Centre at the Tribhuvan International Airport (TIA) suspected that the aircraft crashed in Kunta Devi Village Development Committee in Okhaldhunga district.
Spokesperson at the Ministry of Tourism and Civil Aviation Laxman Prasad Bhattarai said they are yet to confirm if the aircraft that took off from Lamidanda in Khotang district to Kathmandu crashed. According to him, helicopters have been sent to look for the missing aircraft. However, the search mission was cancelled late in the evening due to heavy clouds.
According to the Post’s Khotang correspondent, Deputy Superintendent of Police Tek Bahadur Tamang said the plane did not land in any airport nearby.
The aircraft took off at 03: 08 p.m. and was scheduled to land in Kathmandu at 8: 40 p.m.
Along with Captain Anup Raj Shakya, Co-pilot Sachindra Shrestha and Air Hostess Sudiksha Gurung, there were 18 Bhutanese and one foreigner in the flight, the airline said. The Bhutanese were in Nepal to take part in the SAARC Trade Fair in Kathmandu.
Locals of Okhaldhunga said they heard a loud sound across Musunga Khola. “Police and Army personnel have been sent to comb the area,” chief of the Air Traffic Control (ATC) at the TIA, Kamlesh Lal Karna, quoted the CDO of Okhaldhunga as saying.
ATC officer at the Kathmandu airport, Bhes Raj Adhikari, said the pilot had contacted the tower at around 03: 13 pm as part of its regular reporting and no technical difficulties had been reported then. While the weather in the sector was fair, the ATC declared an emergency when the flight failed to establish contact for almost 30 minutes.
General Manager at the TIA Dinesh Shrestha said the search mission will continue on Thursday morning.
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