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.
Saturday, February 26, 2011
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.
Thursday, February 24, 2011
NOC demands Rs 1.3b monthly loan from govt
SANGAM PRASAIN
KATHMANDU, FEB 25 -
With international oil price surging continuously and Indian Oil Corporation (IOC) also curtailing supply, Nepal Oil Corporation (NOC) on Thursday sought Rs 1.3 billion monthly loan from the government to maintain smooth supply of petroleum products.
Earlier, NOC had demanded that the government allow it to adjust fuel prices in line with the international market price. After the government did not allow it to adjust fuel price, it put forth the second option of loan before the government.
The NOC top brass on Thursday held meeting with Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari and appraised him about the current problem and possible shortage if the government does not intervene at the earliest.
“Though discussions were held on Thursday, decision on either allowing NOC to adjust price or providing it loan is a political decision,” said a senior official at Finance Ministry.
Now, the NOC is waiting for a political decision. “We informed the Finance Ministry about the current problem,” said Jha.
On Monday, the state-owned oil monopoly had proposed Rs 10.73 per litre hike in petrol rate and Rs 17. 24 per litre increase in aviation turbine fuel (ATF) price.
It had also asked the government to waive taxes in LP gas until the price drops in the international market.
The cash-strapped NOC has started curtailing supplies over the last few days citing losses. With Cabinet expansion still in limbo, NOC’s General Manager Digambar Jha is knocking the door of ministers and high-ranking officials to ease the current crisis.
The NOC says its losses jumped to Rs 1.13 billion a month in February. The government’s reluctance in adjusting fuel prices in line with international price, according to the NOC, has inflated its losses. The corporation had last hiked fuel prices on Dec. 6.
According to the NOC, it is incurring a loss of Rs 11.30 per litre in diesel, Rs 5.59 per litre in petrol and Rs 357 per cylinder in LPG.
KATHMANDU, FEB 25 -
With international oil price surging continuously and Indian Oil Corporation (IOC) also curtailing supply, Nepal Oil Corporation (NOC) on Thursday sought Rs 1.3 billion monthly loan from the government to maintain smooth supply of petroleum products.
Earlier, NOC had demanded that the government allow it to adjust fuel prices in line with the international market price. After the government did not allow it to adjust fuel price, it put forth the second option of loan before the government.
The NOC top brass on Thursday held meeting with Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari and appraised him about the current problem and possible shortage if the government does not intervene at the earliest.
“Though discussions were held on Thursday, decision on either allowing NOC to adjust price or providing it loan is a political decision,” said a senior official at Finance Ministry.
Now, the NOC is waiting for a political decision. “We informed the Finance Ministry about the current problem,” said Jha.
On Monday, the state-owned oil monopoly had proposed Rs 10.73 per litre hike in petrol rate and Rs 17. 24 per litre increase in aviation turbine fuel (ATF) price.
It had also asked the government to waive taxes in LP gas until the price drops in the international market.
The cash-strapped NOC has started curtailing supplies over the last few days citing losses. With Cabinet expansion still in limbo, NOC’s General Manager Digambar Jha is knocking the door of ministers and high-ranking officials to ease the current crisis.
The NOC says its losses jumped to Rs 1.13 billion a month in February. The government’s reluctance in adjusting fuel prices in line with international price, according to the NOC, has inflated its losses. The corporation had last hiked fuel prices on Dec. 6.
According to the NOC, it is incurring a loss of Rs 11.30 per litre in diesel, Rs 5.59 per litre in petrol and Rs 357 per cylinder in LPG.
Tuesday, February 22, 2011
NOC proposes govt revise fuel prices
SANGAM PRASAIN
KATHMANDU, FEB 23 -
The Nepal Oil Corporation (NOC) has proposed the Ministry of Supplies revise the existing price of petroleum products in line with the international market price International fuel price soared to a whooping $106 a barrel on Tuesday following the Libyan uprising.
The corporation has proposed Rs 10.73 per litre hike in petrol rate and Rs 17. 24 per litre increase in aviation turbine fuel (ATF) rate, saying that the existing price would inflate its losses and induce short supply.
The corporation said only an immediate price hike could ensure smooth supply, as the existing price would compel it to cut down gasoline import. According to NOC sources, the corporation had curtailed gasoline import by 25 percent on Monday. With the current international price, increased import means increased losses for NOC.
The state-owned oil monopoly has also proposed the government to waive taxes on diesel and LP gas until the international price drops. It has also proposed the government to adjust the petrol price in line with Raxaul price and ATF price in line with Kolkata price. Petrol price in Raxaul is Rs 97.23 per litre, while ATF costs Rs 97.24 per litre in Kolkata, according to the corporation.
The NOC has estimated its February losses at Rs 1.13 billion. The corporation said it is incurring a loss of Rs 5.59 per litre in petrol and enjoying a profit of Rs 11.43 per litre in ATF.
Currently, consumers are paying Rs 88 per litre for petrol and Rs 68.50 per litre for diesel and kerosene. Normally, the country consumes 15,000 kilo litre (kl) of petrol and 70,000 kl of diesel every month. However, according to NOC, in the first half of February, it imported 9,000 kl of petrol and 39,000 kl of diesel, much higher than the normal consumption. NOC General Manager Digambar Jha fears that the significant rise in gasoline consumption could result in severe fuel shortage. As per the current rate, petrol and diesel import could reach 18,000 kl and 80,000 kl per month, respectively.
“We have proposed the price revision to ensure smooth supply,” said Jha, adding that increased load-shedding hours have also increased gasoline demand. If the government will not be serious in this issue, there may be a severe fuel shortage soon.
The NOC on Dec 6, 2010 had hiked the prices of major petroleum products, making petrol, diesel and kerosene each dearer by Rs 3 per litre and LP gas by 75 per cylinder.
KATHMANDU, FEB 23 -
The Nepal Oil Corporation (NOC) has proposed the Ministry of Supplies revise the existing price of petroleum products in line with the international market price International fuel price soared to a whooping $106 a barrel on Tuesday following the Libyan uprising.
The corporation has proposed Rs 10.73 per litre hike in petrol rate and Rs 17. 24 per litre increase in aviation turbine fuel (ATF) rate, saying that the existing price would inflate its losses and induce short supply.
The corporation said only an immediate price hike could ensure smooth supply, as the existing price would compel it to cut down gasoline import. According to NOC sources, the corporation had curtailed gasoline import by 25 percent on Monday. With the current international price, increased import means increased losses for NOC.
The state-owned oil monopoly has also proposed the government to waive taxes on diesel and LP gas until the international price drops. It has also proposed the government to adjust the petrol price in line with Raxaul price and ATF price in line with Kolkata price. Petrol price in Raxaul is Rs 97.23 per litre, while ATF costs Rs 97.24 per litre in Kolkata, according to the corporation.
The NOC has estimated its February losses at Rs 1.13 billion. The corporation said it is incurring a loss of Rs 5.59 per litre in petrol and enjoying a profit of Rs 11.43 per litre in ATF.
Currently, consumers are paying Rs 88 per litre for petrol and Rs 68.50 per litre for diesel and kerosene. Normally, the country consumes 15,000 kilo litre (kl) of petrol and 70,000 kl of diesel every month. However, according to NOC, in the first half of February, it imported 9,000 kl of petrol and 39,000 kl of diesel, much higher than the normal consumption. NOC General Manager Digambar Jha fears that the significant rise in gasoline consumption could result in severe fuel shortage. As per the current rate, petrol and diesel import could reach 18,000 kl and 80,000 kl per month, respectively.
“We have proposed the price revision to ensure smooth supply,” said Jha, adding that increased load-shedding hours have also increased gasoline demand. If the government will not be serious in this issue, there may be a severe fuel shortage soon.
The NOC on Dec 6, 2010 had hiked the prices of major petroleum products, making petrol, diesel and kerosene each dearer by Rs 3 per litre and LP gas by 75 per cylinder.
Monday, February 21, 2011
Healthy bookings for coming tourist season
SANGAM PRASAIN
KATHMANDU, FEB 21 -
International airlines and hotels have reported healthy bookings for the coming peak tourist season. March, April and May attract adventure and leisure tourists to Nepal.
Hoteliers are expecting a 10 percent higher occupancy rate this season compared to the same period in 2010. "We are hopeful that our occupancy will cross 80 percent," said Raju Bikram Shah, general manager of the Hotel Shangri-La. Hotel bookings by Indian travellers have been high for March compared to last year, Shah added.
"Airline booking statistics from the major gateways connecting Nepal— Delhi, Bangkok, Abu Dhabi, Doha and Bahrain— show strong inbound bookings beginning from the first week of March,” said Shyam Raj Thapaliya, managing director of Osho World Travel Nepal.
A recent study done by Nielsen Company in association with the Pacific Asia Travel Association (PATA) shows that Indian arrivals to Nepal have remained constant since 2008. Nepal occupied the fifth place for Indian leisure travellers after Singapore, Malaysia, Dubai, Thailand and Switzerland. The Nepal Tourism Year campaign has targeted 265,000 Indian travellers this year. “Following Indians, bookings by Korean, Italian, French and Chinese travellers have also shown a positive indication this season,” Shah said.
“Considering the current booking trend, we are hopeful that occupancy will cross 80 percent in March and be higher in April,” said Bharat Joshi, sales and marketing director of the Hotel Yak & Yeti. “The UN, embassies, INGOs and other international agencies have been taking the initiative to promote Nepal in recent times.” These international agencies have been recommending Nepal as the perfect place for MICE activities which has resulted in hotels seeing a rise in the MICE segment.
The government has also announced Rs 500,000 incentive to any organiser holding MICE programme involving more than 100 foreign passport holders entering Nepal through air route. The incentive will be provided within seven days of the completion of such programme upon submission of evidence and relevant documents.
The Soaltee Hotel has targeted to increase room occupancy by 8-10 percent this season, said the hotel.
However, mountaineering agencies said that bookings for expeditions had not picked up as expected this season. “Travellers now have lots of options. The mountains in India, Pakistan and China are attracting aspirant mountaineers,” said Ang Tshering Sherpa, former president of the Nepal Mountaineering Association.
Although the government has announced different schemes to attract mountaineers particularly to Western Nepal, lack of transportation and infrastructure has kept the sector isolated. “The reason behind the slow bookings can also be attributed to the cost of climbing peaks in Nepal which is lower in neighbouring countries,” Sherpa said.
Tourist arrivals have bounced back in 2010 breaking all past records. Arrivals by air in 2010 reached 448,769 surpassing the highest ever of 421,243 in 1999.
KATHMANDU, FEB 21 -
International airlines and hotels have reported healthy bookings for the coming peak tourist season. March, April and May attract adventure and leisure tourists to Nepal.
Hoteliers are expecting a 10 percent higher occupancy rate this season compared to the same period in 2010. "We are hopeful that our occupancy will cross 80 percent," said Raju Bikram Shah, general manager of the Hotel Shangri-La. Hotel bookings by Indian travellers have been high for March compared to last year, Shah added.
"Airline booking statistics from the major gateways connecting Nepal— Delhi, Bangkok, Abu Dhabi, Doha and Bahrain— show strong inbound bookings beginning from the first week of March,” said Shyam Raj Thapaliya, managing director of Osho World Travel Nepal.
A recent study done by Nielsen Company in association with the Pacific Asia Travel Association (PATA) shows that Indian arrivals to Nepal have remained constant since 2008. Nepal occupied the fifth place for Indian leisure travellers after Singapore, Malaysia, Dubai, Thailand and Switzerland. The Nepal Tourism Year campaign has targeted 265,000 Indian travellers this year. “Following Indians, bookings by Korean, Italian, French and Chinese travellers have also shown a positive indication this season,” Shah said.
“Considering the current booking trend, we are hopeful that occupancy will cross 80 percent in March and be higher in April,” said Bharat Joshi, sales and marketing director of the Hotel Yak & Yeti. “The UN, embassies, INGOs and other international agencies have been taking the initiative to promote Nepal in recent times.” These international agencies have been recommending Nepal as the perfect place for MICE activities which has resulted in hotels seeing a rise in the MICE segment.
The government has also announced Rs 500,000 incentive to any organiser holding MICE programme involving more than 100 foreign passport holders entering Nepal through air route. The incentive will be provided within seven days of the completion of such programme upon submission of evidence and relevant documents.
The Soaltee Hotel has targeted to increase room occupancy by 8-10 percent this season, said the hotel.
However, mountaineering agencies said that bookings for expeditions had not picked up as expected this season. “Travellers now have lots of options. The mountains in India, Pakistan and China are attracting aspirant mountaineers,” said Ang Tshering Sherpa, former president of the Nepal Mountaineering Association.
Although the government has announced different schemes to attract mountaineers particularly to Western Nepal, lack of transportation and infrastructure has kept the sector isolated. “The reason behind the slow bookings can also be attributed to the cost of climbing peaks in Nepal which is lower in neighbouring countries,” Sherpa said.
Tourist arrivals have bounced back in 2010 breaking all past records. Arrivals by air in 2010 reached 448,769 surpassing the highest ever of 421,243 in 1999.
Sunday, February 20, 2011
New casino guideline in offing
The gambling houses may have to put up collateral to obtain licence
SANGAM PRASAIN
KATHMANDU, FEB 21 -
Delay in paying royalty to the government could prove costly for casinos henceforth.
With Parliament’s Public Account Committee (PAC) instructing the government to come up with regulatory framework to regulate casinos, the Ministry of Tourism and Civil Aviation (MoTCA) has prepared a draft guidelines on casinos which says that casinos have to put up a collateral worth equivalent to the two years’ royalty while acquiring operating licence.As casinos were found to be reluctant in paying royalty and other dues to the government, the proposal of collateral was floated, said a ministry official. “The rationale behind the new provision is to ensure royalty compliance,” said a ministry official. “If a casino defaults on royalty payment, the government will seize its collateral.” Currently, casinos have to pay an annual royalty of Rs 20 million.
The guidelines, which are currently under discussion, say that the operating license can be renewed every two years. The government, through the budget, has made it mandatory for casinos to get their licences renewed every year. As per the Finance Bill, casinos failing to clear their royalties by mid-January will lose their licences. A gambling house that loses its licence will have to start afresh to obtain a new one.
The new guidelines also talk about allowing Nepali citizens in casinos. However, only big taxpayers (those having an annual turnover of Rs 250 million) will be allowed in casinos. The Department of Revenue Investigation will provide data of those big taxpayers. Casinos should issue memberships to these people, says the proposed guideline. However, they have to pay an entry fee of Rs 5,000 for 24 hours.
According to the draft guidelines, casino operators have to submit their detailed business and investment plan to the government to obtain licence. With most of the casinos relying on Nepali citizens, the guidelines say that casinos should come up with tourism packages to attract foreign clients. Casinos should register their infrastructure —from furniture to gaming machines at the ministry and should have ministry’s stickers pasted on them.
The ministry will supervise casinos every three months and will be entrusted with the whole job of monitoring them, according to the guideline. In order to regulate and enforce the guidelines, plain-cloth police personnel will also be mobilised in casinos. Hotels had been complaining that surprise police raids had terrified their clients.
The DRI had recommended the ministry to shut eight casinos failing to pay their royalty dues on time. The ministry has not been able to take a decision in this regard because of the delay in the Cabinet formation.
The DRI on Feb. 13 had dispatched a letter to the ministry asking it to shut down Casino Rad, Casino Venus, Casino Grand, Casino Royale, Casino Anna, Casino Shangri-La, Fulbari Casino and Casino Nepal after they failed to clear their outstanding royalties and dues within the 35-day deadline set by the department.
Of the 10 casinos currently operating in the country, only two—Casino Tara at Hotel Hyatt Regency and Casino Everest at Hotel Everest—have cleared their dues.
In a bid to regulate the casino business, PAC issued a series of directives to the government—from drafting a Casino Act and working procedure for casinos to amending the existing Gambling Act. PAC had directed the government on Dec. 28 to scrap operating licences of casinos that fail to clear their dues within 35 days. The DRI, based on PAC’s directive, had issued a strong notice to all the defaulting casinos asking them to either clear their dues or face cancellation of their operating licenses.
Following the PAC directives, five casinos—Casino Tara, Casino Rad, Casino Venus, Casino Grand and Casino Shangri-La—paid their royalties for the current fiscal year. However, except for Casino Tara, the other four have been recommended for action by the DRI. Three casinos—Casino Venus, Casino Rad and Casino Grand—have been recommended for action as they have not cleared their interest payment for the current fiscal year even though they paid the royalty for the current fiscal year.
According to the DRI, these eight casinos still owe Rs 355 million to the government. Despite constant pressure of revenue enforcement agencies, Casino Anna and Casino Nepal have not settled their dues. These two casinos owe Rs 244 million. Likewise, Casino Fulbari still has to pay Rs 62.1 million.
The government, for the last six months, has been tightening the screw against casinos after their repeated failure to clear royalties and dues. Continued defiance by casinos of government orders to clear their dues and bar Nepalis from entering their premises forced the government and PAC even to explore the possibility of moving them out of Kathmandu.
SANGAM PRASAIN
KATHMANDU, FEB 21 -
Delay in paying royalty to the government could prove costly for casinos henceforth.
With Parliament’s Public Account Committee (PAC) instructing the government to come up with regulatory framework to regulate casinos, the Ministry of Tourism and Civil Aviation (MoTCA) has prepared a draft guidelines on casinos which says that casinos have to put up a collateral worth equivalent to the two years’ royalty while acquiring operating licence.As casinos were found to be reluctant in paying royalty and other dues to the government, the proposal of collateral was floated, said a ministry official. “The rationale behind the new provision is to ensure royalty compliance,” said a ministry official. “If a casino defaults on royalty payment, the government will seize its collateral.” Currently, casinos have to pay an annual royalty of Rs 20 million.
The guidelines, which are currently under discussion, say that the operating license can be renewed every two years. The government, through the budget, has made it mandatory for casinos to get their licences renewed every year. As per the Finance Bill, casinos failing to clear their royalties by mid-January will lose their licences. A gambling house that loses its licence will have to start afresh to obtain a new one.
The new guidelines also talk about allowing Nepali citizens in casinos. However, only big taxpayers (those having an annual turnover of Rs 250 million) will be allowed in casinos. The Department of Revenue Investigation will provide data of those big taxpayers. Casinos should issue memberships to these people, says the proposed guideline. However, they have to pay an entry fee of Rs 5,000 for 24 hours.
According to the draft guidelines, casino operators have to submit their detailed business and investment plan to the government to obtain licence. With most of the casinos relying on Nepali citizens, the guidelines say that casinos should come up with tourism packages to attract foreign clients. Casinos should register their infrastructure —from furniture to gaming machines at the ministry and should have ministry’s stickers pasted on them.
The ministry will supervise casinos every three months and will be entrusted with the whole job of monitoring them, according to the guideline. In order to regulate and enforce the guidelines, plain-cloth police personnel will also be mobilised in casinos. Hotels had been complaining that surprise police raids had terrified their clients.
The DRI had recommended the ministry to shut eight casinos failing to pay their royalty dues on time. The ministry has not been able to take a decision in this regard because of the delay in the Cabinet formation.
The DRI on Feb. 13 had dispatched a letter to the ministry asking it to shut down Casino Rad, Casino Venus, Casino Grand, Casino Royale, Casino Anna, Casino Shangri-La, Fulbari Casino and Casino Nepal after they failed to clear their outstanding royalties and dues within the 35-day deadline set by the department.
Of the 10 casinos currently operating in the country, only two—Casino Tara at Hotel Hyatt Regency and Casino Everest at Hotel Everest—have cleared their dues.
In a bid to regulate the casino business, PAC issued a series of directives to the government—from drafting a Casino Act and working procedure for casinos to amending the existing Gambling Act. PAC had directed the government on Dec. 28 to scrap operating licences of casinos that fail to clear their dues within 35 days. The DRI, based on PAC’s directive, had issued a strong notice to all the defaulting casinos asking them to either clear their dues or face cancellation of their operating licenses.
Following the PAC directives, five casinos—Casino Tara, Casino Rad, Casino Venus, Casino Grand and Casino Shangri-La—paid their royalties for the current fiscal year. However, except for Casino Tara, the other four have been recommended for action by the DRI. Three casinos—Casino Venus, Casino Rad and Casino Grand—have been recommended for action as they have not cleared their interest payment for the current fiscal year even though they paid the royalty for the current fiscal year.
According to the DRI, these eight casinos still owe Rs 355 million to the government. Despite constant pressure of revenue enforcement agencies, Casino Anna and Casino Nepal have not settled their dues. These two casinos owe Rs 244 million. Likewise, Casino Fulbari still has to pay Rs 62.1 million.
The government, for the last six months, has been tightening the screw against casinos after their repeated failure to clear royalties and dues. Continued defiance by casinos of government orders to clear their dues and bar Nepalis from entering their premises forced the government and PAC even to explore the possibility of moving them out of Kathmandu.
Health is wealth
Hospitals and medical colleges are big investment opportunities for the private sector
SANGAM PRASAIN
KATHMANDU, FEB. 18
Nepali business houses have stayed away from investing in the health sector for many years. Presently, some of the leading names in Nepal's private sector, the Khetan Group, NE Group and Upendra Mahato, have announced plans to enter the health sector in a big way.
The private sector has a strong presence in the domestic health sector through medical institutions like Om Hospital, B&B Hospital, Medicare Hospital, Kathmandu Medical College and Manipal Medical College. However, the latest wave of investments from the private sector shows that health is now turning into an investment area for them.
The Chaudhary Group was perhaps the first business house in Nepal to make a foray into the health sector in an institutional way. The group established Norvic International Hospital (then known as Norvic Health Care and Research Centre) in 1994. It is now operating with 100 beds. Two leading private hospitals, Om Hospital and Medicare Hospital, were upgraded from nursing homes to hospitals.
The expansion and success of private hospitals in India, ever growing need of quality health service and poor performance of public sector health outlets has provided immense opportunities for the private sector. Khetan Group chairman Rajendra Khetan said, "There is a huge gap between demand and supply in domestic health service." Khetan thinks the domestic market is large enough for private players to survive and make profits.
Cash-rich Khetan Group is currently looking for land for its foray into the health sector. According to Rajendra Khetan, the group will invest Rs 3 billion in its health project that includes hospital, medical college and nursing college.
After investing in Medicare Hospital, Upendra Mahato, former president of the Non-Resident Nepali Association (NRNA), is now gearing up for yet another venture into health. Mahato is working to start a medical college and hospital in Kathmandu. The proposed Ashwini Medical College and Hospital is a Rs 7 billion project. The college will have 100 seats and has already received permission from the Ministry of Education. According to sources, the medical college will be affiliated to Tribhuvan University or Kathmandu University.
CE Construction in a tie-up with another company has invested in Grande International Hospital at Dhapasi, Kathmandu with 200 beds. The Rs 1.2 billion project will be completed by February 2012, according to Vijay Rajbhandary, chairman of CE Construction. "The hospital will be a multi-disciplinary one to cater to the growing needs of patients," said Rajbhandary. "The hospital will be expanded to 500 beds within a decade along with a medical college and nursing college."
Of late, foreign joint ventures are slowly making inroads into the Nepali health sector. Norvic Hospital has recently entered into an agreement with India’s Medanta Medicity, one of the leading hospitals in India, for technology transfer and expertise in the medical field. Super Religare Laboratories (SRL), one of India’s leading diagnostic networks, opened a Super Religare Reference Laboratories (Nepal) in a joint venture with the NE Group.
The laboratory is a partnership between SRL and Life Care Services, a subsidiary of the NE Group. Each has a 50 percent stake in Super Religare Reference Laboratories which has a total investment of Rs 50 million. SRL is the largest and most trusted pathology laboratory network in India, servicing nearly 4,000 hospitals/path labs and over 50,000 doctors.
This JV, according to Ravi Bhakta Shrestha, vice chairman of the NE Group, is now mulling opening a boutique hospital in Nepal. "We're currently under negotiation with Fortis Healthcare Limited, one of SRL's promoters," said Shrestha. Though it is still not decided about the equity structure, Shrestha says the NE Group is keen to invest up to 50 percent in this venture. The boutique hospital will have 100 beds with world class health services.
Norvic is also going for a big expansion drive with an investment of Rs 1 billion. Apart from expanding its existing hospital at Thapathali by adding 100 beds, it is establishing a medical college at Lubhu, Lalitpur. There will be a 100-bed community hospital at Lubhu that will provide health service at relatively cheaper prices.
With the public health service still not being effective despite the government pumping in billions of rupees, the private sector's entry into it is believed to make health services better, professional and reliable. However, there is also the question of affordability. Will the common people have access to these high-end medical facilities? Will they be able to get services? These are some pertinent questions.
Khetan believes that with an increase in supply, the cost of health services will drop. "There is a huge gap between demand and supply. If we can manage to increase supply, we'll have a higher turnover, which will eventually allow us to provide health services at affordable prices," says Khetan.
Health entrepreneurs say that if properly developed, Nepal can attract patients from India due to cheaper medical costs and agreeable climate.
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