Interview

‘Flagship Carrier Should Be Revived For Tourism Growth’

Nov 30, -0001 0 5 minutes 10 seconds to read

…

‘Nepal Has The Capacity To Emerge As An Outsourcing Base Camp

Nov 30, -0001 0 5 minutes 28 seconds to read

…

‘Nepal Needs Urgent Reforms, Not Tourism Year Gimmick’

Nov 30, -0001 0 5 minutes 1 seconds to read

…

‘Comprehensive Strategy Needed For Hydropower Development’

Nov 30, -0001 0 5 minutes 29 seconds to read

…

‘Malaysia Tourism Aiming 36 Million Tourist By The Year 2020’

Nov 30, -0001 0 3 minutes 55 seconds to read

…

Necessities Of Commercial Bench

Nov 30, -0001 0 5 minutes 50 seconds to read

…

‘CAAN Plans To Improve Eight Airports In Remote Areas’

Nov 30, -0001 0 5 minutes 14 seconds to read

…

‘This Budget Supports A Liberal Economy’

Nov 30, -0001 0 5 minutes 7 seconds to read

…

‘We Are Receptive To Private Sector’s Suggestions For PDA’

Nov 30, -0001 0 5 minutes 46 seconds to read

…

‘We Are Soft Now, Shall Be Strict Soon’

Nov 30, -0001 0 5 minutes 20 seconds to read

…

‘No To Another Merger Right Now’

Nov 30, -0001 0 5 minutes 53 seconds to read

…

Ajay Shrestha

Nov 30, -0001 0 4 minutes 20 seconds to read

…

Swagat Shrestha

Nov 30, -0001 0 5 minutes 43 seconds to read

…

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No Laughing Matter

The Sweet Rewards of Power

By Madan Lamsal

. . .
read more »

NEPSE

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			'title' => '‘Flagship Carrier Should Be Revived For Tourism Growth’',
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	<span style="font-size:16px;"><img alt="Sagar Pandey" src="/userfiles/images/inter.jpg" style="float: right; margin: 0px 0px 0px 10px;width: 200px; height: 186px;" />The thought that the private sector should now take the lead in boosting the tourism industry is gaining momentum. That one in four visitors to Nepal go trekking should say something about the popularity of this activity in the country. Around 1000 trekking agencies are affiliated with the Trekking Agencies&rsquo; Association of Nepal (TAAN).&nbsp;Sagar Pandey, Executive Chairman of the Himalayan Glacier Trekking, was elected as the General Secretary of TAAN at the recently held general convention of the association. &nbsp;The Corporate&rsquo;s &nbsp;Sagar Ghimire, spoke to Pandey this week about the challenges and problems of trekking agencies and their role in private sector-led tourism development. <strong>Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Can it be inferred from the political leverage seen during the general convention of TAAN that the association is under the control of political parties rather than trekking agencies?</strong></span></div>
<div>
	Though I cannot rule out the inclination of an individual towards a certain political party, TAAN is a purely professional association representing professional trekking agencies. We do not hold any political baggage so we are a non-political entity.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">What are the challenges and problems in running trekking agencies?&nbsp;</span></strong></div>
<div>
	Tax/VAT for this service sector, illegal trekking operations threatening our cottage industries and penetration of international investment in this business, among others, are short term challenges we are dealing with. Long term problems include the collapse of trekking routes due to the expansion of roads, development of tourism infrastructure, developing new trekking trails, promoting tourism and policy reforms.</div>
<div>
	&nbsp;</div>
<div>
	Also, since this is a service sector, 13 per cent VAT/tax is too high for us to afford. It is not judicious to charge the service sector VAT as much as the manufacturing sector is charged. All entrepreneurs should be brought under the VAT, and the government should lower it to 4/5 per cent as is the international practice.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Are trekking agencies dissatisfied with the government&rsquo;s attitude for tourism development?</strong></span></div>
<div>
	The recently commemorated international tourism &nbsp;day was just an opportunity for the government to repeat its rhetoric on the importance of tourism for the country&rsquo;s economic growth. Unfortunately, no effective plans toward such sector were presented. There is no research on how tourists make their plans, what the international trends are in tourism, why tourists come to Nepal, and what should be our strategies. Even after one and a half years of the completion of Nepal Tourism Year (NTY), the report of the event is yet to be prepared. How do you review the performance of stakeholders with this laid back approach?</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What are the marketing and promotional plans of TAAN to brand Nepal as the world&rsquo;s best trekking destination in the international market?</strong></span></div>
<div>
	Apart from participating in world exhibitions and trade fairs and using international media, we think reviving our flagship national carrier Nepal Airlines Corporation which connects Nepal to the world can double the number of tourists. Provided that our national carriers has flights to multiple countries, the arrival of tourists can increase significantly. We will pressure the government for this.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>It is said that the price undercutting by trekking agencies is responsible for the decline of tourists&rsquo; spending despite a rise in their numbers. What will TAAN do to curb such practices?</strong></span></div>
<div>
	With the lack of correct data, we make evaluations through hypotheses or the record of the World Bank or other multilateral agencies. The concerned agency should come up with a proper data keeping system which will help us address this problem. Undercutting of price also results from a competitive market. Gone are the days when tourists used to come without information of the price. We cannot fix the price of any package in a free market. However, we can only create awareness about ethical practices through various forums. We cannot stop them even if they run their agencies on a loss by providing services at low prices.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Acknowledging the role of the private sector, a provision has been made for the private sector&rsquo;s representation in the Nepal Tourism Board. What is your assessment of its performance?</strong></span></div>
<div>
	Interactions with representatives of the tourism sector, have shown that the planning, execution and other roles of the NTB have not been up to our expectations. The post of Chief Executive Officer of NTB has been vacant for the past two years. We maintained that there should be representation on the board of NTB from professional associations like TAAN and NATTA. Only this can ensure true representation of the private sector as well as avoid controversies and politicisation.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What are some future plans in developing new trekking trails?&nbsp;</strong></span></div>
<div>
	There is a need for parallel trails where previous ones have collapsed due to road expansion. Since our geography is complicated, we must collaborate with the government for developing trekking trails. We have been stuck with the same old trails like Annapurna and Langtang trails, but we have to make new trails that encompass the mountains stretching across the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>How is revenue collected from the distribution of Trekkers&rsquo; Management Information System (TIMS) cards?</strong></span></div>
<div>
	The revenue of TIMS is for developing infrastructures, promoting, conserving and maintaining trekking trails. A committee was formed for the monitoring of the TIMS revenue. We will plan to spend this money constructively following the report from this committee.&nbsp;</div>',
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			'description' => 'The thought that the private sector should now take the lead in boosting the tourism industry is gaining momentum. That one in four visitors to Nepal go trekking should say something about the popularity of this activity in the country. Around 1000 trekking agencies are affiliated with the Trekking Agencies’ Association of Nepal (TAAN). Sagar Pandey, Executive Chairman of the Himalayan Glacier Trekking, was elected as the General Secretary of TAAN at the recently held general convention of the association.',
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	&nbsp;</p>
<div>
	Khem Raj Bhattarai is the founder and CEO of KRB Software Pvt Ltd. As an emerging software developer, the company is focused on producing management system products along with other services. Bhattarai talked to Sanjeev Sharma of The Corporate about the company&#39;s plans and his views on the Nepali software industry. Excerpts:</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What products and services does KRB Software offer?</strong></div>
<div>
	&nbsp;</div>
<div>
	We are basically offering 16 software products. We are producing management system software products under the Kohinoor brand which are targeted to clients such as educational institutions, hotels/restaurants, hospitals/ clinics/ pharmacy, co-operative financial institutions, shopping malls, manpower, educational consultancies etc. We are also producing products for accounting, inventory control, point of sale (POS), human resource management and customer relation management. Besides these, we provide tailor-made software according to the need and demand of clients, tech consulting and software prototyping.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Besides these, what other projects are currently being worked on?</strong></div>
<div>
	&nbsp;</div>
<div>
	Currently we are focused on management system products. We plan to launch other service related products in the near future. KRB Software is planning to expand the hotel management system. We are also designing portals that will help individuals and companies manage their day-to-day work. Similarly, we are also looking to introduce some services based on business-to-consumer (B2C) and business-to-business (B2B) concepts.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>The majority of KRB&#39;s software is built using a web-based platform that can be accessed through mobile devices. Do you have any plan to enter the mobile application market?</strong></div>
<div>
	&nbsp;</div>
<div>
	Mobile devices are making computing tasks a lot easier. Regarding this, we are developing software using web-based platforms which allow the users to access the products through their mobile devices. The company is planning to enter the mobile apps markets and a mobile application developer team has been formed for the purpose. We are looking to develop the existing management system software products into mobile apps too. We are also planning to develop mobile games and astrology apps.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>While talking about software, security always emerges as a major concern. How do you ensure the security of your products?</strong></div>
<div>
	&nbsp;</div>
<div>
	In terms of data and system security, I can ensure you that our products are 100 per cent secure. The software are developed using the latest technology which are well shielded and protected. We provide a world class security system which cannot be breached by hackers. We have also developed a system which tracks our software products that are installed into the computers of individual clients. However, for optimal level of security, the machines of clients too should be well protected.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What is the response from your clients? How do you assess the prospect of tailor-made software to cater to the needs of Nepali clients?</strong></div>
<div>
	&nbsp;</div>
<div>
	We are fully satisfied with the warm response from Nepali clients. Our domestic clients are gradually leaning towards locally produced software products. The user-friendly system, flexibility and customization are some of the main factors attracting Nepali clients.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What are the benefits of using software produced by your company compared to the products of big international names?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	As far as I know, there are very few management system software available in the Nepali market. Products from big international developers are not able to fulfill the need of Nepali clients. Our products are developed by Nepali engineers, developers and designers who are well aware of the needs of domestic clients. Besides this, our software products are also reasonably priced and highly efficient compared to foreign brands. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>KRB Software has outsourced for some Fortune 500 companies. How do you assess the prospect of an outsourcing market in Nepal?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Yes, we have done outsourced tasks for some big multinational companies in the past. However, we experienced that the outsourcing market in Nepal is poorly managed. There is no policy regarding IT outsourcing. The banking rules of our country won&#39;t let us do direct financial transaction with the foreign companies. For instance, the Nepali financial system is not linked with the global online payment gateway PayPal. This is causing a big problem for receiving payments from foreign firms. Likewise, the outflow of IT manpower from the country is another problem. &nbsp;Nepali outsourcing market can witness a rapid growth if these issues are properly addressed. The outsourcing market could be a major foreign currency earner if properly taken care of. Looking at the current scenario of manpower production (software engineers, programmers, designers etc), Nepal possesses the capacity to emerge as an outsourcing base camp in Asia.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Nepal is witnessing a steady growth of software market. What are the challenges underlying the market?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Sales of product and service are the most challenging aspects. We have to ensure our clients about security and convince them that the products will fulfill their needs. Pricing of the products is another challenge. Many developers are selling unbranded products at very cheap prices which is hampering healthy competition in the market. This is somehow affecting developers like us who are committed to sell quality products developed using standard procedures.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Are Nepali software developers getting any help from the government?</strong></div>
<div>
	&nbsp;</div>
<div>
	Sadly, the government is not helping the Nepali software industry. Many government offices and projects are using foreign products that cost thousands of dollars. This is resulting in a huge amount of capital flight. We can develop any type of high quality software products that will fulfill the need of governmental tasks. The government should start using locally produced software which will be of great help to us. We also encourage people to use domestic software products hoping that it will reduce capital and human resource flight from Nepal.&nbsp;</div>
<div>
	<br />
	&nbsp;</div>',
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			'description' => 'Khem Raj Bhattarai is the founder and CEO of KRB Software Pvt Ltd. As an emerging software developer, the company is focused on producing management system products along with other services. Bhattarai talked to Sanjeev Sharma of The Corporate about the company's plans and his views on the Nepali software industry. Excerpts:',
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			'id' => '1806',
			'article_category_id' => '134',
			'title' => '‘Nepal Needs Urgent Reforms, Not Tourism Year Gimmick’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:14px;"><strong><img alt="Raja Ram Giri," src="/userfiles/images/iv.jpg" style="float: left; margin: 0px 10px 0px 0px;width: 200px; height: 221px;" />Raja Ram Giri</strong>, an NRN based in London, is Director of Samsara Nepal Financial Services Ltd, the first money transfer company in the UK to be owned by a Nepali. He is also the Managing Editor and Publisher of Himalayas magazine, an annual publication that promotes Nepali tourism in the UK and Europe. Giri spoke to Britant Khanal of The Corporate Weekly about the performance of his businesses in the UK.<strong> Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>What is the concept behind launching a magazine like Himalayas in the UK? Who are its readers and what has been the response thus far? &nbsp;&nbsp;</strong></div>
<div>
	This magazine was not the reason why I went to UK. Initially, I wanted to study Information Technology. I was studying at a university where there were no students from our side of the world which made me feel very alien. One day a professor told me that he had been to my country. But when he described what he saw, I realized he was talking about Darjeeling, not Nepal. That was when I quit IT and shifted to Tourism Studies and planned to do something that would make the world recognize my country. So, this magazine was an outcome of my ego and pride. It has been doing a decent job in making our country known in London and many parts of Europe. &nbsp; &nbsp;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What has your role been so far in promoting Nepali Tourism to the rest of the world?</strong></div>
<div>
	When I started studying tourism, Nepal was celebrating the Visit Nepal Year 1998. &nbsp;Since the country was celebrating a national festival, I thought of doing something along the same lines, and then contacted the Nepali embassy in the UK. With their help, I held a small cultural programme at my college in front of almost 1,300 students explaining what Nepal is and what it looks like. The programme was very much appreciated. Since then, I have been doing the same job trying to tell people how beautiful my country is and taking pride in it. &nbsp; &nbsp; &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What are some tangible hindrances seen in promoting Nepali tourism to the rest of the world?</strong></div>
<div>
	What our politicians have to understand is that declaring a tourism year will not bring tourists. They will have to work on tourism policies to attract tourists instead of showering flowers from helicopters on the day of declaration and spending millions on inaugurals. They will have to explain to tourists what Nepal looks like and what our culture is. They could have come with cultural programmes in famous places of different cities like the Trafalgar Square, London or may be some place in New York, too. Another basic obstruction is transportation - the Government of Nepal has not been able to provide sufficient number of flights of the Nepali airlines to and from tourist originating areas.</div>
<div>
	&nbsp;</div>
<div>
	<strong>You are also associated with the Kathmandu-Kulekhani-Hetauda Tunnel Road. Could you tell us a little about that?</strong></div>
<div>
	We have been working on the Kathmandu-Kulekhani-Hetauda tunnel road and it is one of the first private sector initiatives in structural design and work. This project seems very promising for transportation. It will assist in the smooth functioning of business and economy. This project also hopes to bring a lot of investments from Samsara UK and a lot from non-resident Nepalis living in UK. There are reasons why these kinds of project are not pacing up in our country. For one, we are still using the traditional way of construction. We still see workers using hammers on the road whereas technology around the globe has taken a leap ahead. Therefore, we are working hand-in-hand with other domestic companies to bring required changes in infrastructure to speed up the pace of work.</div>
<div>
	&nbsp;</div>
<div>
	<strong>You own a company called &lsquo;Samsara Nepal&rsquo; in the UK. What is the function of this company and what are your future plans for Nepal?</strong></div>
<div>
	Samsara Nepal is basically a company for remittance. This company too was an outcome of an incident. I was working in some other company back then in the UK and had sent some money back home which unfortunately went to Mumbai because the company I sent the money through thought Kathmandu was in India, and had written KTM India in the address. The money went to an Indian branch which was in Mumbai. Later, I filed a complaint and resent the money.</div>
<div>
	&nbsp;</div>
<div>
	Sixteen years back, when I first went to the UK, there were no proper and reliable remittance companies to send money through. There was an informal money sending mechanism popularly known as the Hundi system of which the government has no record of. Therefore, we came up with an idea of setting up a company which would provide a safe way to send money back home. We have now been working with Sunrise Bank, Himalayan Bank and Standard Chartered Bank in sending hard earned remittances back home. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Besides sending money from London to Nepal, this company also wants to promote our national economy. Samasara Nepal wants to suggest the government to impose a certain level of taxes on the remittance which immigrants could use after returning back to the country. This would benefit the individual and the nation overall, because while an amount approximately equal to 27 per cent of Nepal&rsquo;s GDP comes in as remittance, it has not been invested in a productive sector as far as I know. The government should focus on capitalizing on remittance by investing it in productive sectors.</div>',
			'published' => true,
			'created' => '2013-09-16',
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			'description' => 'Raja Ram Giri, an NRN based in London, is Director of Samsara Nepal Financial Services Ltd, the first money transfer company in the UK to be owned by a Nepali. He is also the Managing Editor and Publisher of Himalayas magazine, an annual publication that promotes Nepali tourism in the UK and Europe. Giri spoke to Britant Khanal of The Corporate Weekly about the performance of his businesses in the UK.',
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			'id' => '1723',
			'article_category_id' => '134',
			'title' => '‘Comprehensive Strategy Needed For Hydropower Development’',
			'sub_title' => '',
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			'content' => '<div>
	<span style="font-size:14px;"><strong><img alt="Yasing Zhang,Senior Vice President of Sinohydro Resources Ltd, " src="/userfiles/images/yz.jpg" style="float: right; margin: 0px 0px 0px 10px;width: 200px; height: 184px;" />Yasing Zhang</strong> is the Senior Vice President of Sinohydro Resources Ltd, a Chinese multinational hydropower and infrastructure company. Zhang was in Kathmandu to attend the two-day Power Summit 2013. In a tete-e-tete with <strong>Sanjeev Sharma</strong> of The Corporate, he expresses his plan to tap hydropower potential in Nepal.&nbsp;</span></div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Power Summit&nbsp;</span></strong></div>
<div>
	I think, the Power Summit 2013 organised by the Independent Power Producers Association of Nepal (IPPAN) has provided a platform for investors, policy makers and stakeholders to freely express their views and to discuss various topics regarding the hydropower sector. I believe that the discussions helped iron out major hassles prevailing in the sector. In this regard, the Power Summit 2013 has successfully achieved its goal to hasten the pace of hydropower development in Nepal.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">FDI in the Hydropower</span></strong></div>
<div>
	As an investor, we feel that there is an absence of preferential and privilege policies to attract foreign investment in Nepali hydropower projects. There are no incentives in terms of taxes for foreign investors. The tax burden created from provisions of contract tax and value added tax (VAT) is putting pressure on the developers. The absence of proper insurance policies pertaining to hydropower has also been hindering foreign investment. Investments in projects are always at risk in case of natural disaster or big technical failures if there are no proper insurance policies in place.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;It is necessary to formulate investment-friendly policies to attract Foreign Direct Investment (FDI). Thus, policy makers should harmonise existing laws.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Problems for Investors</span></strong></div>
<div>
	Nepal has tremendous hydropower potential. But the country has yet to tap its potential due to several problems mostly linked to project licensing, technical issues as well as legal hurdles. I think the Nepal government should be ready to relax existing hassles on agreement and licensing to ensure timely service delivery. In Nepal, there is no procedure in accordance with international standards to issue Project Development Agreements (PDA), which slows the pace of project development and adversely affects the sentiment of developers. The initial survey licenses of various major projects are held by domestic/foreign developers for several years or even decades. Similarly, there are also issues regarding Power Purchase Agreements (PPA). The fluctuation in foreign exchange rate makes things difficult for power developers as they are more likely to face loss in selling the electricity they generate. These issues should be addressed first hand.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	There are several infrastructure-related constraints. Poor roads, lack of transmission lines, difficulties in conducting projects in remote areas and insufficient supply of construction materials and equipments are other problems in developing a project here. &nbsp;Likewise, awarding a single river basin to many contractors is also adding complications. Some social and political influences such as frequent protests and strikes against particular projects and inadequacy of local skilled staffs are other contributing factors.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Solutions to the Existing Hassles</span></strong></div>
<div>
	Effective policies are needed to solve all aforementioned problems. Developing common standards and procedures concerning hydropower investment will also have positive impact. A common standard and procedures should address issues regarding contract and licenses, company registration, bank account opening and control of foreign currency. Issues regarding the holding of initial license can be solved by cooperation with or transferring from the initial license holder. As far as PDA and PPA are concerned, the government should follow procedures in line with international standards.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	There is an exigency in preferential policy provision on hydropower investments. This includes duty exemption and tax reduction on raw materials, construction equipments, vehicles, and the income of power developers. Convenience on custom clearance and flexibility in work visa will also boost the morale of foreign investors. There are several issues regarding land acquisition by the projects. This issue could be solved by issuing instructive principles of land acquisition. Establishing a general administration on land acquisition and transfer capable of providing guiding land price in different regions and project areas will be the first right step. Secondly, simplifying the land acquisition and transfer procedure is also necessary.</div>
<div>
	&nbsp;</div>
<div>
	One-stop service of hydropower development can deliver effective solutions. For that, the government should set-up a stable and comprehensive agency responsible for hydropower administration in Nepal.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Water Resource Management&nbsp;</span></strong></div>
<div>
	Hydropower development is directly linked to water resource management. If properly managed, the water resource of a single project can be used for various purposes. For this, Nepal needs to identify pilot projects. Those projects should be fairly large enough in terms of power generation. This will help focus efforts in hydropower development. Apart from electricity generation, such projects may also provide water for irrigation and drinking.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Sinohydro&rsquo;s Plan&nbsp;</span></strong></div>
<div>
	Sinohydro Resources Limited is the overseas investment window of Power Construction Corporation of China (Power China). We have been in overseas investment business since 2004 with a registered capital of USD 400 million. We entered the Nepali market in 1995 and successfully accomplished six major hydropower, irrigation and infrastructure projects since then. The Ilam Hydroelectric Project, Modi Hydroelectric Project, Sikta Irrigation Project Phase 1, Sunsari-Morang Irrigation Project, and Bagmati Irrigation Project were handed over to the Nepal government after completion. Similarly, we upgraded the Tansen-Tamghas road project. Currently, Sinohydro is engaged in civil works of Kulekhani 3 and Upper Tamakoshi. Likewise, the 50MW Upper Marsyangdi &lsquo;A&rsquo; hydropower project is being developed with our investment.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Nepal should Take Advantages</span></strong></div>
<div>
	Nowadays, trading of surplus power is becoming a lucrative trade in the world. Nepal can earn substantial amount of money from such trading. I suggest the government and concerned authorities to formulate a master plan of power consumption. The plan should assess domestic requirements and power for export. Similarly, the establishment of a nationwide transmission network is also necessary for electricity export.&nbsp;</div>',
			'published' => true,
			'created' => '2013-09-02',
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			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'Yasing Zhang is the Senior Vice President of Sinohydro Resources Ltd, a Chinese multinational hydropower and infrastructure company. Zhang was in Kathmandu to attend the two-day Power Summit 2013. I',
			'sortorder' => '1584',
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	(int) 4 => array(
		'Article' => array(
			'id' => '1688',
			'article_category_id' => '134',
			'title' => '‘Malaysia Tourism Aiming 36 Million  Tourist By The Year 2020’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:14px;"><img alt="Amran Abdul Rahman, director of Tourism Malaysia" src="/userfiles/images/mls.jpg" style="
float: left; margin: 0px 10px 0px 0px;width: 200px; height: 239px;" />The World Tourism Organisation has declared Malaysia as the 9th most visited country in the world for the last three consecutive years since 2009 and it has also achieved another feather on its hat by becoming the tenth friendliest country across the globe as declared Forbes Online. What makes Malaysia so especial and to share tourism promotional activities in Nepal, <strong>Amran Abdul Rahman</strong>, director of Tourism Malaysia in a rendezvous with The Corporate Weekly Associate Editor <strong>Sujit Nath</strong> revealed how Malaysia became the hot destination for the tourists from all over the world. <strong>Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>What is purpose your of visit in Nepal?</strong></div>
<div>
	This is for the first time I came to Nepal to get a first-hand experience of the market. Tourism Malaysia is doing market research in Nepal for the last 14 years and so far the response is good. &nbsp;I came here to welcome the people here to Malaysia under our promotional banner of &lsquo;Visit Malaysia Year 2014&rsquo;. A seminar was recently conducted on tourism on August 23 in association with the local tour operators. I look forward for a better relationship with Nepal in terms of tourism.</div>
<div>
	&nbsp;</div>
<div>
	<strong>How you rate Nepal as a market in terms of tourism?</strong></div>
<div>
	I think there is a great market in Nepal and its growing as compared to last year. An average Nepali tourist spends nearly 62,423.76 NPR, which is 2000 Malaysian Ringgit. Tourists from Nepal prefer to stay longer as compare to Indian tourists. So, the more they will stay &mdash; the more we will be able to generate the revenue. In Malaysia people more about Nepal than India because of its long association and common features in terms of lifestyle. But we are happy that response from Nepal and India is so far good.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What category of Nepali tourists prefers Malaysia as their favourite tourist destination?</strong></div>
<div>
	Most of the Nepali tourists come with their family but we have seen in recent years that a large number of youngsters are also exploring Malaysia. In last six months from January to June there was a growth of 33.7 per cent Nepali tourist in Malaysia. This was a significant growth and we are happy that the market is growing. We are confident to serve our best to the Nepali tourist with utmost homely care. It&rsquo;s our privilege to provide a comfortable stay in Malaysia.</div>
<div>
	&nbsp;</div>
<div>
	<strong>The banner &lsquo;Visit Malaysia Year 2014&rsquo; seems inviting with its marketing strategy. Could you please elaborate on that?</strong></div>
<div>
	Well I must say it will be the year of fun and frolic with endless new day-night mesmerising shows. What added more zeal, is the scheduled Grand Prix, which is going to be the show stopper. We are expecting a large number of tourists from across the globe to witness the carnival. For the shopping lovers, we are organizing a big event under the banner of Malaysia Mega Sale festival where the tourists will get all kind of branded lifestyle items in a cheaper price.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Malaysia tourism is doing a lot of promotional activities for Business and customized personal tourism. Could you share your views on the latest trend and response on Business tourism?</strong></div>
<div>
	It&rsquo;s a high end tourism segment and the Malaysia Convention and Exhibition Bureau (MyCEB) &mdash; meant to deal with the business tourism &mdash; has a done a commendable job. There is a rise in the business meetings of some of the big corporate houses in the world. The other areas, which include customized personal tourism packages, are weddings, honeymoon, cruise, luxury tourism etc. We are getting good revenue in these&nbsp;</div>
<div>
	segments too.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Tell me something about the overall all tourism scenario in Malaysia?</strong></div>
<div>
	In 2011, Malaysia recorded 24.7 million tourist arrivals with tourist receipts totaling RM 58.3 billion. In 2012, the country&rsquo;s tourist arrivals and receipts registered more than 25 million RM. The Malaysia Tourism Transportation Plan is targeting 36 million tourist arrivals and RM 168 billion in receipts by the year 2020. Kuala Lumpur was voted as the fourth best shopping city in the world and I am sure with other attractions which we have in Malaysia, we will be able to woo more tourists from Nepal and India.</div>',
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			'created' => '2013-08-26',
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			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'The World Tourism Organisation has declared Malaysia as the 9th most visited country in the world for the last three consecutive years since 2009 and it has also achieved another feather on its hat by becoming the tenth friendliest country across the globe as declared Forbes Online.',
			'sortorder' => '1549',
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	(int) 5 => array(
		'Article' => array(
			'id' => '1638',
			'article_category_id' => '134',
			'title' => 'Necessities Of Commercial Bench',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<strong style="font-size: 14px;"><img alt="Shreekant Poudel,the spokesperson of the Supreme Court." src="/userfiles/images/BK.jpg" style="float: right; margin: 0px 0px 0px 10px; width: 175px; height: 224px;" />Shreekant Poudel</strong><span style="font-size: 14px;"> Is the spokesperson of the Supreme Court. In an interview with </span><strong style="font-size: 14px;">Britant Khanal</strong><span style="font-size: 14px;"> of The Corporate weekly he shed light on the introduction of commercial bench and its need.</span><strong style="font-size: 14px;"> Excerpts:</strong></div>
<div>
	&nbsp;</div>
<div>
	<strong>Could you highlight the reason behind establishing the commercial bench?</strong></div>
<div>
	The first and foremost reason behind the establishment of this bench is the need for speedy justice, easy access and quick legal remedies for the commercial sector. Even more important is the demand made by the law in many acts after the second Jana Andolan. It is clearly mentioned that such and such cases will be dealt by the commercial bench like for instance in Section Z8 of the Company Act. After 2006, the World Bank had also suggested the requirement of such a bench. The Company Act, the Secured Transaction Act and other acts related to safe competition have mentioned the requirement of this bench. Was this issue initiated by ADB? I don&rsquo;t think so but the ADB had some general interest and it had recommended on bringing such a bench too.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What new prospects will the bench bring? Will it have the same old practices disguised as new?</strong></div>
<div>
	In the process of establishing this bench we had to and we still are training judges, judicial staffs and even lawyers. The training lasts from one to one-and-a-half months as per requirement. The judges who attend the training are only sent to the bench for hearing commercial cases. The new commercial bench will therefore slowly shed some old ways.</div>
<div>
	&nbsp;</div>
<div>
	<strong>There seems to be a paradox in the bench being established for the benefit of the commercial sector while the jurisdiction seems a bit scattered, vague and ambiguous. Could you talk a little about this? &nbsp; &nbsp;</strong></div>
<div>
	We are still in the starting phase of establishing the bench. As per my knowledge, the initial requirement was that of a separate commercial court which came down to establishing a commercial bench in appellate courts. This was required because cases related to the commercial sector are heard in a scattered manner. For example, cases of contract are first heard by the district court, that of patents are heard by the department of industry, and many cases are addressed by the Nepal Rastriya Bank (NRB) too. Therefore, a common institution to streamline all commercial cases and bring them under one umbrella seemed to be necessary.</div>
<div>
	&nbsp;</div>
<div>
	Home work is yet to be completed. It was rightly questioned whether or not offences in banking will be dealt by the commercial bench. The issue is still subject to research and analysis. There are other issues also like that of intellectual property and cases of revenue tribunal. So there is a lot to be done and we are striving to bring all of these cases under the commercial bench.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Has the bench been established in all appellate courts in the country?</strong></div>
<div>
	No, we have not established commercial benches in all appellate courts as they are established in a need-based manner. The previous chief justice had recommended the bench to be established in six places including Pokhara but later it was only established in four places. We therefore have established this bench in five places, Hetauda being the youngest which was established two years back and the other four are Biratnagar, Hetauda, Butwal, Nepalgunj and Patan.</div>
<div>
	<img alt="Cases Regarding Commercial Bench" src="/userfiles/images/cbnch.jpg" style="width: 500px; height: 235px;" /></div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
			<tr>
				<td bgcolor="#FFFFFF">
					<div>
						&nbsp;</div>
					<table align="right" border="0" cellpadding="1" cellspacing="1">
						<tbody>
							<tr>
								<td>
									<img alt="Gandhi Pandit Advocate" src="/userfiles/images/GP.jpg" style="width: 200px; height: 250px;" /></td>
							</tr>
							<tr>
								<td style="text-align: center;">
									<div>
										<strong>Gandhi Pandit</strong></div>
									<div>
										Advocate</div>
								</td>
							</tr>
						</tbody>
					</table>
					<div>
						<h1 style="text-align: center;">
							&lsquo;We are still at the initial stage&rsquo;</h1>
						<div>
							<strong>What is your take on the commercial bench?</strong></div>
						<div>
							The judges must be competent to look at all kinds of cases, but frankly, that is not possible all the time because of growing trade issues in the domestic and global markets and because some of the cases are so sophisticated that they require specialised knowledge and high expertise is not available in the country. Smooth functioning of the economy will require a better legal system which will support rapid growth and development. Therefore, the present context demands a commercial bench to go in hand in hand with the pace of development in order to be able to forge a conducive environment for global as well as domestic investors.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							<strong>Where can we trace the footprints of this system?</strong></div>
						<div>
							This system can be traced to the continental legal system, commonly understood as the French and German legal system. In these systems, we can see the trends of a commercial tribunal, a labour tribunal, an industrial tribunal, among others. In these kinds of tribunals the specialised skills of various sectors are brought for the better understanding of the case. And this system was later followed by Britain and the United States of America. Therefore, this pragmatic approach has led to speedy justice and quick legal remedies in these nations. But in our context, we are still lagging behind. Our judges are still traditional and are only specialised in traditional issues such as cases of land dispute, writ petition, etc. whereas we don&rsquo;t have expertise on cases like letter of credit, IT law, intellectual property law, cases of trademark and so on.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							<strong>What could be the possible remedy to such lacunae and paralysis?</strong></div>
						<div>
							Establishing the bench is one thing and effectiveness is another. As judges are frequently transferred to places without access to such knowledge, they will require training, and attending the training once will not make an impact as there has to be periodic training which we are lacking. Therefore the national judicial academy has been training judges but in the same traditional cases only. Not enough training has been provided in the field of modern commercial issues. Another major problem is procedural delay. These kinds of hurdles will further delay justice and so they will have to be reduced to a minimum. Such deficiencies in the system will give a very wrong message to foreign investors.</div>
					</div>
					<div>
						&nbsp;</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<p>
	&nbsp;</p>',
			'published' => true,
			'created' => '2013-08-19',
			'modified' => '0000-00-00',
			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'The first and foremost reason behind the establishment of this bench is the need for speedy justice, easy access and quick legal remedies for the commercial sector.',
			'sortorder' => '1499',
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	(int) 6 => array(
		'Article' => array(
			'id' => '1592',
			'article_category_id' => '134',
			'title' => '‘CAAN Plans To Improve Eight Airports In Remote Areas’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<strong><img alt="Ratish Chandra Lal Suman,Director General of Civil Aviation Authority of Nepal (CAAN)." src="/userfiles/images/rcls.jpg" style="float: right; margin: 0px 0px 0px 10px;width: 200px; height: 219px;" />Ratish Chandra Lal Suman</strong> is the Director General of Civil Aviation Authority of Nepal (CAAN). In an interview with <strong>Raju Baskota</strong> of The Corporate, Suman shared the plans and parameters of CAAN and the International Civil Aviation Organization (ICAO). <strong>Excerpts:&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	<strong>What is the progress made thus far in regulating domestic and international air services and in division of work among service providers?</strong></div>
<div>
	We are in the last phase of regulating air services and the division of work. &nbsp;We are planning to finalize the process by 2015 and our consultants too have provided a report accordingly. CAAN rules need to be amended for the implementation of the report; we need government support for this and are working towards it.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Could you elaborate on the division of work?</strong></div>
<div>
	It is important to form different committees for operating an airport, providing services and deciding its rules and regulations. This is an international practice and was discussed since the establishment of CAAN. But air services were very few then although now it is gradually increasing. A systematic process is needed for work division, which is taking time.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Will differentiating work and regulation services mitigate safety risks?</strong></div>
<div>
	Yes, risk will be mitigated with these measures. Division of work will bring simplicity in work and work load will automatically grow lighter. This in turn will help in risk reduction. We also are expecting to reduce the safety challenges by regulating air services differently on the basis of domestic and international air services.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What have been CAAN&rsquo;s recent achievements?</strong></div>
<div>
	We prioritized improving the standard of our airports by adding new technologies and increasing safety. The Air Traffic Controller (ATC) automation system has begun due to this and new radar will be placed by 2015 too. We are also working on minimizing safety challenges and on improving the management system.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Does CAAN itself devise the budget for the improvement of airports?</strong></div>
<div>
	Government&rsquo;s grants and the total amount of shares invested are kept in the same basket by CAAN. The aviation authority is allowed to allocate its annual revenue and the government&rsquo;s grants to areas as required. With such allocations, we have completed construction of seven airports within the past three years. CAAN is also allocating funds to improve other airports. This fiscal year, CAAN is planning to improve eight airports in remote areas.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What is being done to operate Nepali airline services according to the standards and rules of the International Civil Aviation Organization (ICAO)?</strong></div>
<div>
	CAAN is taking gradual steps for this. Nepal is also working to have safety audits considering ICAO standards. Similarly, we are planning to set parameters for both domestic and international flights, to systemize work process and policies, focusing on the safety of air services. CAAN will request to repair the aircraft&rsquo;s system for landing and take-off and if it is not complete, we will take action accordingly.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>CAAN has added parameters for Air Operator Certificate Requirements (AOCR). Airline companies are calling it impractical. What is your take on the matter?</strong></div>
<div>
	How is it impractical? Airline companies are not behaving as per the requirement of airline services and now they are calling the new AOCR impractical. A company that can bring an airline worth Rs 500 million can obviously pay the required amount for its certification. For the smooth operation of aircraft, we have set a deposit of Rs 2.5 million for helicopters, Rs 5 million for domestic flights and Rs 500 million for international flights. This parameter must be followed.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What is the progress on CAAN&rsquo;s decision to buy an aircraft?</strong></div>
<div>
	CAAN is a regulatory body and is supposed to develop rules and regulations, conduct frequent analyses and training. An aircraft was needed for aviation training. The Authority possessed one aircraft 10 years ago which crashed and has not been replaced since. The Authority has thus allocated Rs 570 million to buy a Twin Otter aircraft. In case this amount is insufficient, some more funds will be provided. We are planning to open a tender to bring a Twin Otter aircraft by September 2015.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>There are rumours that CAAN is buying an aircraft to only serve politicians. What do you say?</strong></div>
<div>
	&nbsp;We have considered the matter of buying an aircraft very seriously. We will form specific parameters to operate it by providing 10 per cent of the maintenance cost for regular services of aircrafts and 90 per cent for business purposes. The maintenance and insurance costs, and additional parts of the aircraft are all included in the fund allocated for its purchase.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Why is the Authority weak in keeping a clear statement of income and expenditure of airports?</strong></div>
<div>
	We are analysing the income-expenditure figures of all airports currently. If we analyse the investment and operation costs of all airports, we can see that every airport including Tribhuvan International Airport (TIA) is making a loss. As for the annual operation of flights, only seven airports in trunk routes, that have maximum passenger flows are in profit.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>CAAN has a budget of Rs 11 million for this fiscal year. Is the construction of new airports included in it?</strong></div>
<div>
	Of the total budget, Rs 7 million has come from government grants and share capital and Rs 4 million has come from the Authority&rsquo;s internal source. The total expenditure of the Authority will mainly go to the construction and capacity enhancement of airports, keeping the government&rsquo;s suggestions in consideration.</div>
<div>
	&nbsp;</div>',
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			'created' => '2013-08-12',
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			'description' => 'Ratish Chandra Lal Suman, the Director General of Civil Aviation Authority of Nepal (CAAN) shared the plans and parameters of CAAN and the International Civil Aviation Organization (ICAO).',
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	(int) 7 => array(
		'Article' => array(
			'id' => '1545',
			'article_category_id' => '134',
			'title' => '‘This Budget Supports  A Liberal Economy’',
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			'content' => '<div>
	<span style="font-size: 12px;"><strong><img alt="Dr Chiranjibi Nepal,Chief Economic Advisor at the Ministry of Finance." src="/userfiles/images/Dr%20Chiranjibi%20Nepal.jpg" style="float: right; margin: 0px 0px 0px 10px;width: 150px; height: 188px;" />Dr Chiranjibi Nepal </strong>is Chief Economic Advisor at the Ministry of Finance. In an interview with Sweta Sharma of The Corporate weekly, he shed light on the nature of the budget for FY 2013-2014. <strong>Excerpts:&nbsp;</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>To what extent do you think the current budget will boost the economy of Nepal?&nbsp;</strong></div>
<div>
	The country&rsquo;s economy has suffered badly whenever the budget was presented late. After six long years, the government came up with a full-fledged and timely budget concentrating on core areas such as energy, agriculture, infrastructure, education and health. I believe that the timely announcement of the budget is a very positive sign for development and can boost the economy largely. The government has also aimed for a growth rate of 5.5 per cent which is certainly going to be achieved with the budget of the current fiscal year.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Given that the growth rate recorded for the past 10 years has been 3.7 per cent in average, how realistic is this year&rsquo;s target of 5.5 per cent?&nbsp;</strong></div>
<div>
	Late budgets in the past have affected capital expenditure to a large extent. The current budget has taken initiatives which could stimulate the flow of capital expenditure and improve economic activities. The current budget has also addressed important social and economic issues and is advocating for a stronger role of the private sector to spur the economy. In this regard, we can say that, with proper implementation of the budget, 5.5 per cent growth target is achievable.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What major policy changes did the government miss to address in this year&rsquo;s budget and why?&nbsp;</strong></div>
<div>
	I don&rsquo;t think the budget has missed addressing any important issue. The budget as a whole is inclusive as it has considered every sector - social, economic, infrastructure and business. This budget supports a liberal economy. It also encourages the private sector to take the lead. Considering these things, there are not many changes that have to be made for now.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>This budget has brought a number of populist programmes to serve certain political parties. What is your comment on this?&nbsp;</strong></div>
<div>
	I disagree with the statement that the government has brought populist programmes. It has brought programmes that are for everyone. Unlike previous years, the current budget has been least criticised. At the macro level, the budget has brought a long term programmes which is a must to boost the economy. Similarly, the budget focuses more on the private sector. Therefore, the budget is not controversial.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>In hydropower, the budget allocation for transmission lines is largely from donors. The government did not set aside anything for land acquisition. Why this lapse?&nbsp;</strong></div>
<div>
	Yes, to some extent there have been lapses but it is being corrected. The budget allocation for land acquisition is still being processed and the government is contributing to this purpose. The budget has emphasised energy sector with belief in its importance to uplift the economy. The government is concerned about the land acquisition issue and is on the move to provide maximum support. The government plans to eliminate the chronic problem of power outage within the next three years.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Private sector hydropower developers have expressed dissatisfaction since the budget has not provided incentive for private power producers. What are your comments on this?&nbsp;</strong></div>
<div>
	We have to understand that the environment being created for hydropower is itself an incentive. The budget has allocated a huge sum for the energy sector which is also a form of incentive. This has initiated an environment for investment in energy which can later bring profit to the private sector. But merely arranging a budget cannot bring about desired results if not backed by effective implementation. Thus, the government is committed towards effective implementation of programmes that have been put forward.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>The budget has Rs 300 million allocated for export incentives which the private sector says is peanuts. What do you think?&nbsp;</strong></div>
<div>
	Export depends on competition with other countries. To present Nepal as a competitor, the amount allocated for exports is sufficient and very convenient in our context. The private sector has expressed satisfaction in the budget stating that it has attempted to address most of the concerns raised by the business community.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>While the budget speech mentions a deficit of Rs 87.7 billion, budget documents prepared by the Ministry of Finance caps deficit at Rs 40.5 billion. Why such a huge discrepancy?&nbsp;</strong></div>
<div>
	There has been a misunderstanding about the budget deficit. The exact figure for deficit is Rs 87.7 billion. To balance it, the new budget attempted to incorporate limited number of new programmes that are necessary to encourage exports, generate energy and boost the morale of the private sector. In order to improve Nepal&rsquo;s export performance, various issues on the domestic and international fronts have to be addressed.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>A lot of money is allocated clandestinely for financing the losses of public enterprises (PEs). Why can&#39;t the government allocate funds openly for PEs?&nbsp;</strong></div>
<div>
	Public enterprises are incurring losses. To overcome this problem, we are trying to search for partners in Nepal Telecom and Agricultural Development Bank. For other public enterprises, we are preparing to change their structure and to take them towards privatisation. There is a policy to carry out such activities. We are also closing down some enterprises which cannot earn profit and cannot sustain for long.</div>
<div>
	&nbsp;</div>',
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			'created' => '2013-08-04',
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			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'Dr Chiranjibi Nepal,Chief Economic Advisor at the Ministry of Finance shed light on the nature of the budget for FY 2013-2014.',
			'sortorder' => '1406',
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	(int) 8 => array(
		'Article' => array(
			'id' => '1502',
			'article_category_id' => '134',
			'title' => '‘We Are Receptive To Private Sector’s Suggestions For PDA’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The Ministry of Energy (MoE) is in the process of finalising the Project Development Agreement (PDA) for power projects. The Corporate weekly&rsquo;s <strong>Janardan Baral</strong> and <strong>Bishnu Belbase</strong> spoke to <strong>Bishwa Prakash Pandit</strong>, Secretary at the MoE about the issues of draft PDA, Power Purchase Price and power transmission lines. <strong>Excerpts:</strong></div>
<div>
	&nbsp;</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
	<tbody>
		<tr>
			<td>
				<img alt="Bishwa Prakash Pandit, Secretary, Ministry of Energy" src="/userfiles/images/Bishwa%20Prakash%20Pandit.jpg" style="width: 175px; height: 181px;" /></td>
		</tr>
		<tr>
			<td style="text-align: center;">
				<div>
					<strong>Bishwa Prakash Pandit</strong></div>
				<div>
					Secretary</div>
				<div>
					Ministry of Energy</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	<strong>The Ministry of Energy (MoE) is about to finalise the template for Power Development Agreement (PDA). What are the major provisions?&nbsp;</strong></div>
<div>
	The Electricity Act of 2049 still exists and foreign and local investors develop the projects remaining within the parameters set in that Act. The PDA is being practiced in recent years throughout the world to increase the security of investment. Private sector entrepreneurs in Nepal too want PDA system. Frequent changes in policies and tax rates have increased the cost in hydro power development and there are risks posed by natural settings as well. The PDA template will include the issue of how such risks are to be shared. We have included this under &lsquo;force majeure&rsquo;. Similarly, the issue of quality and security are also addressed in the PDA template. As the project is eventually to be transferred to the government, the quality issue is important. The social responsibility of the developer is also necessary to be included. The process of handing over the project to the government and disputes settlement mechanisms are also being included.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>To what extent are the private sector&rsquo;s suggestions going to be included in the PDA template?&nbsp;</strong></div>
<div>
	The private sector&rsquo;s suggestions are largely included in the template. The PDA will balance the profit interest of the private sector with the national interests.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>It is said that the PDA drafted by the MoE is not bankable. Why did not the MoE take care about making the PDA bankable?&nbsp;</strong></div>
<div>
	We do understand that the PDA should be bankable. In case the current template is not bankable then we want suggestions from the private sector to make it so. We are preparing the PDA template to make it private sector friendly and have been receptive to the private sector&rsquo;s suggestions.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Most of the power projects developed by the government suffer time and cost overrun. Why?&nbsp;</strong></div>
<div>
	Nepal is still in the process of drafting the constitution. Political instability has continued in Nepal for quite long. And is the main cause of time overrun in projects. Similarly, frequent change in government brings change in the leadership of the power projects programmes. Also the practice of starting a project without enough funds arranged is to blame for this. Similarly, there is the challenge of getting the support from local communities.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Independent Power Producers&rsquo; Association of Nepal (IPPAN) has urged for change in the Power Purchase rates. How is it possible to consider their demand when the only buyer Nepal Electricity Authority (NEA) is in perpetual loss?&nbsp;</strong></div>
<div>
	It is said that the reason behind NEA&rsquo;s loss is the low electricity tariff. The government has a policy to revise the tariff as required by the time. NEA has thus formed a committee to prepare a model power purchase agreement so as to accommodate the view that the power price should be based on generation cost. The committee is considering also the view that a certain Internal Rate of Return should be assured to the developers.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Why is the delay in inking PPA with the &lsquo;super-six&rsquo; hydropower projects?&nbsp;</strong></div>
<div>
	The government has entrusted the super-six hydropower projects to private power producers selected through a bidding process. But the government is not able to fulfill its commitment regarding these projects. However, the MoE is determined to fulfill those commitments. The problem of these projects is lack of transmission lines. Current FY budget has allocated funds for development of these transmission lines. But this budget allocation alone is not enough to hope that there will be transmission lines. I believe that there has been a great mistake of granting license for the super-six projects before the development of transmission lines. We collected money from the private sector but could not prepare the transmission lines on time. Therefore, the private sector is suffering a lot in this regard. Thus, I commit to create situation for these super-six projects to start construction as soon as possible.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Private sector power producers have been asking for PPA in US dollars and NEA is refusing it. This discourages foreign investment. Is it possible to develop hydropower only from domestic investment?&nbsp;</strong></div>
<div>
	PPA in US dollar will not make any difference if the generated electricity is exported. Nepal&rsquo;s currency is not strong enough and costs have increased by signing PPA for Khimti and Bhote Koshi projects in US dollars. This experience is the reason why NEA is hesitating from PPA in US dollars. The MoE, however, has formed a committee to work for agreements in US dollars.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>FY 2013\14 budget has allocated Rs 13 billion for the hydropower and energy sector, focusing on development of transmission lines. Will the transmission line problem be solved now?&nbsp;</strong></div>
<div>
	It is necessary to have a sufficient budget for transmission lines. Foreign grants are included in the budget for the development of transmission lines. But for land acquisition, which is one of the major problems for the transmission lines, the government itself should allocate a budget from its own resources. This is lacking in the budget. We are currently in dialogue with the Ministry of Finance to solve this problem.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>The budget did not address the demand of the private developers for a waiver of VAT on construction materials used by power projects and other demands of the private sector. Why is this so?&nbsp;</strong></div>
<div>
	We are in the discussion about such demands from the private sector. A conclusion is yet to be arrived at on this. So it was not included in the budget. We are, however, determined to encourage the private investors.&nbsp;</div>
<div>
	&nbsp;</div>',
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			'description' => 'The Ministry of Energy (MoE) is in the process of finalising the Project Development Agreement (PDA) for power projects.',
			'sortorder' => '1363',
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	(int) 9 => array(
		'Article' => array(
			'id' => '1405',
			'article_category_id' => '134',
			'title' => '‘We Are Soft Now, Shall Be Strict Soon’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:14px;">Jiwan Prava Lama is the Director General of Department of Food Technology and Quality Control (DFTQC). In an interview with The Corporate&rsquo;s Suraksha Adhikari, she talked about the present controversy about dairy products in Nepal and highlighted the plans of DFTQC for improving quality of foods in Nepali market. <strong>Excerpts:&nbsp;</strong></span></div>
<div>
	&nbsp;</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
	<tbody>
		<tr>
			<td>
				<img alt="Jiwan Prava Lama,Director General of Department of Food Technology and Quality Control (DFTQC)" src="/userfiles/images/lama.jpg" style="width: 250px; height: 309px;" /></td>
		</tr>
		<tr>
			<td style="text-align: center;">
				<div>
					<strong>Jiwan Prava Lama</strong>,</div>
				<div>
					Director General</div>
				<div>
					Department of Food Technology and Quality Control</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	<strong>Your department has reported that sub-standard and non-edible foods are freely traded in the market. Does it imply a failure of regulators?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	There are 181 standards for food. Within those standards there are 10 categories with various parameters. If the manufactured food doesn&rsquo;t meet a single parameter, we consider it as a non-parameter. We do report such cases but food products that do not meet every parameter cannot be considered adulterated. Some of them are non-conformant, sub-standardized, and some are adulterated. All of these foods are not non-edible. Some of them can be eaten after applying some safety measures.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	We do not consider it as a failure of regulators as it comes under the food safety chain. The quality of food has to be ensured right from its production to the time it reaches the dining table. The food should be checked during production, packaging and even during consumption as even the wrong way of consumption can decrease its quality.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Your department&rsquo;s report on milk products in Kathmandu has caused a drastic reduction in consumption of processed milk, threatening both the dairy industry and dairy farming. What is your comment?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Our department monitored 14 dairy industries and collected 17 samples of milk. Among them, none had met all the parameters. A minimum of two percent of coliform was found in the milk, which does not meet our standard. In such a situation, certain actions are necessary to minimize such irregularities. We are taking action upon these dairies because of which consumption might have decreased. The government too has formed the National Dairy Development Board in order to reduce the adulteration of milk, thereby increasing its quality.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>You are also the head of Nepal Food Scientists and Technologists Association (NEFOSTA). What can your association do for resolving these issues?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	NEFOSTA can play the role of an agent between the government and the industries and fill the gap of technical manpower in companies. There is a lack of skilled manpower in the dairy business because of which these problems are emerging. Our association can help the government by providing technical manpower to ensure quality food.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>It is alleged that your department&rsquo;s campaign against contaminated milk is discriminatory as it punished Nepali dairies while imported milk was not checked. What is your comment?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Our department verifies the quality of milk within certain standards, norms and policies of the department. There are processes that we have to go through when we are performing each and every task. We are checking the quality of milk only on the basis of coliform now and penalizing those dairies where 0-1000 units of coliforms are found in the milk produced by them. Until now, we have been focusing on some soft punishments but we are moving towards some strict action soon.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Your department is criticized also because it has come down harshly on registered dairies and neglected the unregistered ones, discouraging people from registering their dairies and coming under government tax net. What do you have to say?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	It is the duty of local bodies of the concerned area to look after the registration of industries. Our task is to monitor the registered ones. If the local bodies perform their tasks properly, we could perform our work more effectively. But in our country, concerned sectors are not aware of the responsibilities provided by the law. Though the non-registered dairies don&rsquo;t come under our scope of work, we are planning to investigate even them. We have not been able to go ahead for examining the quality of local dairies due to lack of skilled manpower, but we will be involving ourselves with them gradually.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Five dairies are sealed by the government for contamination. What is your take on this?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	We have sealed those dairies for the sake of improving the quality of milk. During the survey of dairies, those which failed to meet certain standards were sealed. But we are liberal on this issue as we can give permission to re-open the sealed diaries if they improve their standards. This action is a warning to the dairies to focus on quality production of milk. Kharipati Dairy was also sealed but when it improved its quality, we permitted its operation to resume.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What further plans does the department have to increase the quality of food?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Presently, we are focusing on quality assurance of milk. There is still so much to be done in the issue of water contamination. After this, we are going into water purification. Sample collection is being done for the inspection of water.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Further, we will be focusing on other domestic products and import-export products. Only goods that meet the legal provisions of Nepal and familiar to consumers here should be imported. We have also discussed with the government to work on the classification of the industries and in maintaining the standard of the Nepali market by developing good management practice in the market to assure Nepali people of quality goods.</div>
<div>
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-07-15',
			'modified' => '2013-07-15',
			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'Jiwan Prava Lama is the Director General of Department of Food Technology and Quality Control (DFTQC). In an interview with The Corporate’s Suraksha Adhikari, she talked about the present controversy about dairy products in Nepal and highlighted the plans of DFTQC for improving quality of foods in Nepali market',
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	(int) 10 => array(
		'Article' => array(
			'id' => '1328',
			'article_category_id' => '134',
			'title' => '‘No To Another Merger Right Now’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<table align="right" border="0" cellpadding="1" cellspacing="1">
	<tbody>
		<tr>
			<td>
				<img alt="Tulasi R. Gautam,CEO,MachhapuchchhreBank Limited" height="209" src="https://lh4.googleusercontent.com/-M_eOSiFZvNc/UdqK3UNMT2I/AAAAAAAAA8o/wwW6sZVBcN0/s512/Tulasiu.jpg" width="200" /></td>
		</tr>
		<tr>
			<td style="text-align: center;">
				<b>Tulasi R. Gautam<br />
				</b>CEO<br />
				Machhapuchchhre Bank Limited</td>
		</tr>
	</tbody>
</table>
<p>
	<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
	<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped?&nbsp;</strong></p>
<p>
	It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
	<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank?&nbsp;</strong></p>
<p>
	NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger.&nbsp;</p>
<p>
	<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason?&nbsp;</strong></p>
<p>
	It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank.&nbsp;</p>
<p>
	<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it?&nbsp;</strong></p>
<p>
	Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
	<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming?&nbsp;</strong></p>
<p>
	There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned.&nbsp;</p>
<p>
	<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion?&nbsp;</strong></p>
<p>
	It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
	<strong>After the merger there is generally chaos among the staffs. How did you manage it?&nbsp;</strong></p>
<p>
	When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
	<strong>How do you evaluate the present situation of commercial banks?&nbsp;</strong></p>
<p>
	Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good.&nbsp;</p>
<p>
	<strong>What are the existing problems in the banking sector?&nbsp;</strong></p>
<p>
	The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
	<strong>It is said that banking sector suffers lack of skilled manpower. Is it true?&nbsp;</strong></p>
<p>
	It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well.&nbsp;</p>
<p>
	<strong>These days the operational risks are getting high in banking sector. How do you consider this?&nbsp;</strong></p>
<p>
	It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk.&nbsp;</p>
<p>
	<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this?&nbsp;</strong></p>
<p>
	It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
	<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties?&nbsp;</strong></p>
<p>
	Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
<div>
	 </div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
</table>
<p>
	 </p>',
			'published' => true,
			'created' => '2013-07-08',
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			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'Tulasi R. Gautam, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal.',
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	(int) 11 => array(
		'Article' => array(
			'id' => '1169',
			'article_category_id' => '134',
			'title' => 'Ajay Shrestha',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size: 20px;"><strong>‘We are securing our banking further, and bringing more people into the system’</strong></span></p>
<p>
	<img align="left" alt="" height="211" src="https://lh3.googleusercontent.com/DAJx8o_ZsL9-ZJvyFsvqbAJYWU3U37zniTin6BXFds8=w147-h207-p-no" width="150" /></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>Ajay Shrestha CEO, ank of Kathmandu (BOK)</strong></p>
<p>
	<strong>Ajay Shrestha is the CEO of Bank of Kathmandu (BOK). In an interview with Sweta Sharma of The Corporate, Shrestha talked about challenges in the banking sector. Excerpts: <br />
	</strong></p>
<p>
	<strong>How have you evaluated BOK’s performance during the last two years? </strong><br />
	The bank’s financials have been stable for the last three years. The bank is also in a reasonable state in terms of profitability.&nbsp;</p>
<p>
	<strong>What are the challenges facing the bank and the entire sector in general? </strong><br />
	As the core market for the banking sector is still not developed in the country, there is a cut-throat competition among banking and financial institutions to get the maximum share of this limited pie. The cost level has also increased with increasing competition. Thus, it is very challenging for a bank to survive in such a competitive market.&nbsp;</p>
<p>
	<strong>The central bank has recently introduced changes to the account opening procedures. What is your take on the changes? </strong><br />
	NRB has recently directed banks to implement a new system, called Know Your Costumer, to keep better records of clients. We welcome the new system. But it definitely has made it difficult for banks to run smoothly.</p>
<p>
	NRB has come up with this new procedure at a time when majority of people still do not have access to banking. But now the procedure has been implemented to some extent. In my view, there are still large numbers of people who need to be encouraged to comply with the new system.</p>
<p>
	<strong>The central bank has said plans to increase the minimum paid up capital requirement for commercial banks to Rs 500 million. What is your bank’s strategy? </strong><br />
	The central bank is yet to decide on the issue. If NRB does increase the paid up capital requirement to Rs 500 million, we will comply with the directive. Earlier, we were successful in meeting the paid up capital requirement of Rs 200 million using our own sources.</p>
<p>
	<strong>The operational risks in banks have been reported to be quite high. How are you coping with that?</strong> <br />
	Operational risks are inherent in the banking sector all over the world. As more and more customers start using banking services, banks have no option but to switch to advanced banking procedures. The risks need to be addressed and minimised. We are complying with all prevailing laws to deal with operational risks. We are continuously reviewing our banking processes to make them more secure.</p>
<p>
	<strong>BOK launched a special scheme to invest in SMEs (small and medium enterprises) and clean energy. How has the experience been so far? </strong><br />
	SMEs are relatively new to Nepali banks. There are is no fixed definition of a small enterprise. It has been around four months since our bank started its SMEs scheme. The process of SME financing is not easy. A lot of research needs to be done before issuing loans.</p>
<p>
	In this regard, we are running financial literacy programmes for prospective SMEs, especially outside the valley. As part of the programme, we are working on building the knowledge base among people to help them understand the banking system. This has helped encourage people to some extent. <br />
	Clean energy is basically associated with environment. We are taking SME and clean energy schemes together.</p>
<p>
	<strong>While most banks have already adopted branchless banking, BOK is still to do so. Why is the bank so slow in adopting new technology? </strong><br />
	Switching to branchless banking requires equipment and investment. We do not rush to adopt new technology as we are very conscious about the outcome a change may bring in. At the same time, we are also into increasing our customer base. Our main mission is to bring more people into the banking system. We are mainly focused on sustaining our bank as a whole.</p>
<p>
	We are planning to provide branchless banking service at 11 locations for now. At the end of the fiscal year, we will be running branchless banking from 25-30 locations. Similarly, we will launch mobile banking soon.</p>
<p>
	<strong>Would you like to say something to your customers? </strong><br />
	We have increased our customer base to 2.5 lakh from 90,000 within three years of time. This is very encouraging for our bank. We want to double the number of customers in the next few years. Our greatest achievement is that we have 50 outlets. We also have 57 ATM counters. We have been successful in meeting our targets till now.<br />
	<br />
	 </p>',
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			'title' => 'Swagat Shrestha',
			'sub_title' => '',
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			'content' => '<p>
	<strong>‘Need fusing science and technology with business’<br />
	</strong><br />
	Swagat Shrestha is the Chairperson of Higher Secondary School’s Association of Nepal’s Kathmandu Chapter (HISSAN KTM). Sweta Sharma of The Corporate Weekly talked with Shrestha about overall education system of Nepal, its reforms, problems and challenges. Excerpts: <br />
	<br />
	<br />
	<strong>How do you evaluate the present education system of Nepal? <br />
	</strong><br />
	Education system of Nepal has improved in a satisfactory way. There have been improvements in courses and vocational and business education are introduced in government schools and colleges. <br />
	<br />
	<br />
	<strong>Comparing with the last year, SLC pass percentage is quite low this year. What do you think might be the reason behind it? <br />
	</strong><br />
	The government has allocated 17 per cent of budget for education. Looking at this, the SLC pass percentage is quite discouraging. This is an issue to be considered seriously. In cities like Kathmandu, we do have 80-90 pass percentages. But the government schools mainly those of out of valley have only 10- 12 pass percentage. Earlier, many schools openly helped students cheat in SLC exams. This year, the examination was very strict, and the papers were also evaluated strictly which might have caused this decline. <br />
	<br />
	<br />
	<strong>One of Nepal’s Millennium Development Goals is to have 100 per cent enrollment in primary school. To what extent do you think it would be possible? <br />
	</strong><br />
	These days, people are quite aware of the importance of education and literacy. Especially in villages, more and more people are being aware about education and we must thank political parties for this as they keep visiting villages for various awareness programmes. This has led to expect some good changes in education sector and I do think there is the possibility of educating a huge portion of the population. <br />
	<br />
	<br />
	<strong>What major reforms do you think are necessary for Nepal’s education system? <br />
	</strong><br />
	The education system of Nepal is city-oriented as must of educational institutions are located in the major cities. Private sector is basically surviving on its own and they have the inclination towards staying where they see good business possibility. It is government’s responsibility to provide education free of cost but instead there is impractical policy that requires educational institutions to pay VAT like tax to the government. <br />
	<br />
	But above all, the major problem of Nepal is political instability and it has affected almost every sector. Every sector is politicized and education sector is also affected largely. Also, we are copying the foreign curriculum and that cannot always be relevant for us. The education system should rather be based on our country’s need and demand. People need to set an example by contributing in Nepal so that the future generations too could be encouraged to stay in Nepal. And if the government educational institutions could provide better education, then the private ones can gradually phase out. <br />
	<br />
	<br />
	<strong>Government has failed in creating satisfactory long term education policies. What are your comments on this? <br />
	</strong><br />
	This is all due to unstable government. The frequent change in government is affecting policies to sustain in the long term. Reforms, policies, rules and regulations get changed with the change of government. Even though the policies are good, it definitely will be changed with new government, and it is so frequent. Still we can hope for positive changes in educational sector as there are possibilities. <br />
	<br />
	<br />
	<strong>What is your suggestion to keep education sector free from political intervention? <br />
	</strong><br />
	The unhealthy competition among major political parties has brought this problem of intervention in every sector request all the major political parties to leave at least the schools free from politics. The political parties should point out the weakness of private educational institutions and we are ready to do our best to overcome those weaknesses. This will help to run the education sector more peacefully. <br />
	<br />
	<br />
	<strong>Students seem to be more attracted towards A-level courses in the recent days. Why is +2 education gradually losing the attraction? <br />
	</strong><br />
	I disagree to this because more number of students are still attracted to +2 colleges. A-level course is of international standard and is also quite expensive. I think A-level degree is not suitable for Nepal. The majority of the students are in +2 colleges rathen than in A-level colleges. Yes, I do agree that the courses are quite advanced in A-level, but it also has its own problems. <br />
	<br />
	<br />
	<strong>It is quite confusing to choose good educational institutions. What do you suggest to the students and guardians? <br />
	</strong><br />
	Distance matters a lot, so it is better to choose those institutions which are quite near to your residence as it would consume less time. There should be enough information about the people who are running the institutions. Educationists can run the institutions well and they will be more inclined towards providing better education. Results of past few years should also be taken into consideration. In addition, the institutions should possess basic infrastructure and facilities where students could find an environment to boost their abilities. If these parameters are considered, it will be relatively easier to select a good school or college. <br />
	<br />
	<br />
	<strong>What unique characteristics do you think your institution Kathmandu Valley College (KVC) possesses when compared to the other colleges? <br />
	</strong><br />
	We have daily evaluation system where every student is supposed to appear in test at the end of the day. In this regard, I can say that our evaluation system is unique. We organize seminars and presentations every Friday to boost the students’ communication and presentation skills. We are also focused on promoting our culture. We also provide ‘Joyful Parenting Training’ where parents and students can interact with each other properly to understand each other’s point of view. We also provide job placement trainings to the students. Broadly speaking, we provide our students with reality based education. <br />
	<br />
	<br />
	<strong>What new programs are you going to introduce in near future which you think will be beneficial to boost the education system of Nepal? </strong><br />
	<br />
	We are going to provide professional computer training to students and we will also certify it. In coming year, we are adding BBA and MBA level according to the demand of students and the market. But our college is more focused on science and technology which is very important for Nepal’s development. We need fusing science and technology with business. This will help to increase the value of products and it ultimately will help to boost Nepal’s economy as well. It also will make our education system more advanced.<br />
	 </p>',
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			'id' => '1874',
			'article_category_id' => '134',
			'title' => '‘Flagship Carrier Should Be Revived For Tourism Growth’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:16px;"><img alt="Sagar Pandey" src="/userfiles/images/inter.jpg" style="float: right; margin: 0px 0px 0px 10px;width: 200px; height: 186px;" />The thought that the private sector should now take the lead in boosting the tourism industry is gaining momentum. That one in four visitors to Nepal go trekking should say something about the popularity of this activity in the country. Around 1000 trekking agencies are affiliated with the Trekking Agencies&rsquo; Association of Nepal (TAAN).&nbsp;Sagar Pandey, Executive Chairman of the Himalayan Glacier Trekking, was elected as the General Secretary of TAAN at the recently held general convention of the association. &nbsp;The Corporate&rsquo;s &nbsp;Sagar Ghimire, spoke to Pandey this week about the challenges and problems of trekking agencies and their role in private sector-led tourism development. <strong>Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Can it be inferred from the political leverage seen during the general convention of TAAN that the association is under the control of political parties rather than trekking agencies?</strong></span></div>
<div>
	Though I cannot rule out the inclination of an individual towards a certain political party, TAAN is a purely professional association representing professional trekking agencies. We do not hold any political baggage so we are a non-political entity.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">What are the challenges and problems in running trekking agencies?&nbsp;</span></strong></div>
<div>
	Tax/VAT for this service sector, illegal trekking operations threatening our cottage industries and penetration of international investment in this business, among others, are short term challenges we are dealing with. Long term problems include the collapse of trekking routes due to the expansion of roads, development of tourism infrastructure, developing new trekking trails, promoting tourism and policy reforms.</div>
<div>
	&nbsp;</div>
<div>
	Also, since this is a service sector, 13 per cent VAT/tax is too high for us to afford. It is not judicious to charge the service sector VAT as much as the manufacturing sector is charged. All entrepreneurs should be brought under the VAT, and the government should lower it to 4/5 per cent as is the international practice.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Are trekking agencies dissatisfied with the government&rsquo;s attitude for tourism development?</strong></span></div>
<div>
	The recently commemorated international tourism &nbsp;day was just an opportunity for the government to repeat its rhetoric on the importance of tourism for the country&rsquo;s economic growth. Unfortunately, no effective plans toward such sector were presented. There is no research on how tourists make their plans, what the international trends are in tourism, why tourists come to Nepal, and what should be our strategies. Even after one and a half years of the completion of Nepal Tourism Year (NTY), the report of the event is yet to be prepared. How do you review the performance of stakeholders with this laid back approach?</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What are the marketing and promotional plans of TAAN to brand Nepal as the world&rsquo;s best trekking destination in the international market?</strong></span></div>
<div>
	Apart from participating in world exhibitions and trade fairs and using international media, we think reviving our flagship national carrier Nepal Airlines Corporation which connects Nepal to the world can double the number of tourists. Provided that our national carriers has flights to multiple countries, the arrival of tourists can increase significantly. We will pressure the government for this.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>It is said that the price undercutting by trekking agencies is responsible for the decline of tourists&rsquo; spending despite a rise in their numbers. What will TAAN do to curb such practices?</strong></span></div>
<div>
	With the lack of correct data, we make evaluations through hypotheses or the record of the World Bank or other multilateral agencies. The concerned agency should come up with a proper data keeping system which will help us address this problem. Undercutting of price also results from a competitive market. Gone are the days when tourists used to come without information of the price. We cannot fix the price of any package in a free market. However, we can only create awareness about ethical practices through various forums. We cannot stop them even if they run their agencies on a loss by providing services at low prices.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Acknowledging the role of the private sector, a provision has been made for the private sector&rsquo;s representation in the Nepal Tourism Board. What is your assessment of its performance?</strong></span></div>
<div>
	Interactions with representatives of the tourism sector, have shown that the planning, execution and other roles of the NTB have not been up to our expectations. The post of Chief Executive Officer of NTB has been vacant for the past two years. We maintained that there should be representation on the board of NTB from professional associations like TAAN and NATTA. Only this can ensure true representation of the private sector as well as avoid controversies and politicisation.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What are some future plans in developing new trekking trails?&nbsp;</strong></span></div>
<div>
	There is a need for parallel trails where previous ones have collapsed due to road expansion. Since our geography is complicated, we must collaborate with the government for developing trekking trails. We have been stuck with the same old trails like Annapurna and Langtang trails, but we have to make new trails that encompass the mountains stretching across the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>How is revenue collected from the distribution of Trekkers&rsquo; Management Information System (TIMS) cards?</strong></span></div>
<div>
	The revenue of TIMS is for developing infrastructures, promoting, conserving and maintaining trekking trails. A committee was formed for the monitoring of the TIMS revenue. We will plan to spend this money constructively following the report from this committee.&nbsp;</div>',
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			'description' => 'The thought that the private sector should now take the lead in boosting the tourism industry is gaining momentum. That one in four visitors to Nepal go trekking should say something about the popularity of this activity in the country. Around 1000 trekking agencies are affiliated with the Trekking Agencies’ Association of Nepal (TAAN). Sagar Pandey, Executive Chairman of the Himalayan Glacier Trekking, was elected as the General Secretary of TAAN at the recently held general convention of the association.',
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	&nbsp;</p>
<div>
	Khem Raj Bhattarai is the founder and CEO of KRB Software Pvt Ltd. As an emerging software developer, the company is focused on producing management system products along with other services. Bhattarai talked to Sanjeev Sharma of The Corporate about the company&#39;s plans and his views on the Nepali software industry. Excerpts:</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What products and services does KRB Software offer?</strong></div>
<div>
	&nbsp;</div>
<div>
	We are basically offering 16 software products. We are producing management system software products under the Kohinoor brand which are targeted to clients such as educational institutions, hotels/restaurants, hospitals/ clinics/ pharmacy, co-operative financial institutions, shopping malls, manpower, educational consultancies etc. We are also producing products for accounting, inventory control, point of sale (POS), human resource management and customer relation management. Besides these, we provide tailor-made software according to the need and demand of clients, tech consulting and software prototyping.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Besides these, what other projects are currently being worked on?</strong></div>
<div>
	&nbsp;</div>
<div>
	Currently we are focused on management system products. We plan to launch other service related products in the near future. KRB Software is planning to expand the hotel management system. We are also designing portals that will help individuals and companies manage their day-to-day work. Similarly, we are also looking to introduce some services based on business-to-consumer (B2C) and business-to-business (B2B) concepts.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>The majority of KRB&#39;s software is built using a web-based platform that can be accessed through mobile devices. Do you have any plan to enter the mobile application market?</strong></div>
<div>
	&nbsp;</div>
<div>
	Mobile devices are making computing tasks a lot easier. Regarding this, we are developing software using web-based platforms which allow the users to access the products through their mobile devices. The company is planning to enter the mobile apps markets and a mobile application developer team has been formed for the purpose. We are looking to develop the existing management system software products into mobile apps too. We are also planning to develop mobile games and astrology apps.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>While talking about software, security always emerges as a major concern. How do you ensure the security of your products?</strong></div>
<div>
	&nbsp;</div>
<div>
	In terms of data and system security, I can ensure you that our products are 100 per cent secure. The software are developed using the latest technology which are well shielded and protected. We provide a world class security system which cannot be breached by hackers. We have also developed a system which tracks our software products that are installed into the computers of individual clients. However, for optimal level of security, the machines of clients too should be well protected.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What is the response from your clients? How do you assess the prospect of tailor-made software to cater to the needs of Nepali clients?</strong></div>
<div>
	&nbsp;</div>
<div>
	We are fully satisfied with the warm response from Nepali clients. Our domestic clients are gradually leaning towards locally produced software products. The user-friendly system, flexibility and customization are some of the main factors attracting Nepali clients.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What are the benefits of using software produced by your company compared to the products of big international names?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	As far as I know, there are very few management system software available in the Nepali market. Products from big international developers are not able to fulfill the need of Nepali clients. Our products are developed by Nepali engineers, developers and designers who are well aware of the needs of domestic clients. Besides this, our software products are also reasonably priced and highly efficient compared to foreign brands. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>KRB Software has outsourced for some Fortune 500 companies. How do you assess the prospect of an outsourcing market in Nepal?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Yes, we have done outsourced tasks for some big multinational companies in the past. However, we experienced that the outsourcing market in Nepal is poorly managed. There is no policy regarding IT outsourcing. The banking rules of our country won&#39;t let us do direct financial transaction with the foreign companies. For instance, the Nepali financial system is not linked with the global online payment gateway PayPal. This is causing a big problem for receiving payments from foreign firms. Likewise, the outflow of IT manpower from the country is another problem. &nbsp;Nepali outsourcing market can witness a rapid growth if these issues are properly addressed. The outsourcing market could be a major foreign currency earner if properly taken care of. Looking at the current scenario of manpower production (software engineers, programmers, designers etc), Nepal possesses the capacity to emerge as an outsourcing base camp in Asia.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Nepal is witnessing a steady growth of software market. What are the challenges underlying the market?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Sales of product and service are the most challenging aspects. We have to ensure our clients about security and convince them that the products will fulfill their needs. Pricing of the products is another challenge. Many developers are selling unbranded products at very cheap prices which is hampering healthy competition in the market. This is somehow affecting developers like us who are committed to sell quality products developed using standard procedures.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Are Nepali software developers getting any help from the government?</strong></div>
<div>
	&nbsp;</div>
<div>
	Sadly, the government is not helping the Nepali software industry. Many government offices and projects are using foreign products that cost thousands of dollars. This is resulting in a huge amount of capital flight. We can develop any type of high quality software products that will fulfill the need of governmental tasks. The government should start using locally produced software which will be of great help to us. We also encourage people to use domestic software products hoping that it will reduce capital and human resource flight from Nepal.&nbsp;</div>
<div>
	<br />
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-09-23',
			'modified' => '0000-00-00',
			'keywords' => 'new business age  interview news & articles, interview news & articles from new business age nepal, interview headlines from nepal,  current and latest interview news from nepal, economic news from nepal, nepali interview economic news and events,  ongoing  interview news of nepal',
			'description' => 'Khem Raj Bhattarai is the founder and CEO of KRB Software Pvt Ltd. As an emerging software developer, the company is focused on producing management system products along with other services. Bhattarai talked to Sanjeev Sharma of The Corporate about the company's plans and his views on the Nepali software industry. Excerpts:',
			'sortorder' => '1706',
			'image' => null,
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	(int) 2 => array(
		'Article' => array(
			'id' => '1806',
			'article_category_id' => '134',
			'title' => '‘Nepal Needs Urgent Reforms, Not Tourism Year Gimmick’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:14px;"><strong><img alt="Raja Ram Giri," src="/userfiles/images/iv.jpg" style="float: left; margin: 0px 10px 0px 0px;width: 200px; height: 221px;" />Raja Ram Giri</strong>, an NRN based in London, is Director of Samsara Nepal Financial Services Ltd, the first money transfer company in the UK to be owned by a Nepali. He is also the Managing Editor and Publisher of Himalayas magazine, an annual publication that promotes Nepali tourism in the UK and Europe. Giri spoke to Britant Khanal of The Corporate Weekly about the performance of his businesses in the UK.<strong> Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>What is the concept behind launching a magazine like Himalayas in the UK? Who are its readers and what has been the response thus far? &nbsp;&nbsp;</strong></div>
<div>
	This magazine was not the reason why I went to UK. Initially, I wanted to study Information Technology. I was studying at a university where there were no students from our side of the world which made me feel very alien. One day a professor told me that he had been to my country. But when he described what he saw, I realized he was talking about Darjeeling, not Nepal. That was when I quit IT and shifted to Tourism Studies and planned to do something that would make the world recognize my country. So, this magazine was an outcome of my ego and pride. It has been doing a decent job in making our country known in London and many parts of Europe. &nbsp; &nbsp;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What has your role been so far in promoting Nepali Tourism to the rest of the world?</strong></div>
<div>
	When I started studying tourism, Nepal was celebrating the Visit Nepal Year 1998. &nbsp;Since the country was celebrating a national festival, I thought of doing something along the same lines, and then contacted the Nepali embassy in the UK. With their help, I held a small cultural programme at my college in front of almost 1,300 students explaining what Nepal is and what it looks like. The programme was very much appreciated. Since then, I have been doing the same job trying to tell people how beautiful my country is and taking pride in it. &nbsp; &nbsp; &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What are some tangible hindrances seen in promoting Nepali tourism to the rest of the world?</strong></div>
<div>
	What our politicians have to understand is that declaring a tourism year will not bring tourists. They will have to work on tourism policies to attract tourists instead of showering flowers from helicopters on the day of declaration and spending millions on inaugurals. They will have to explain to tourists what Nepal looks like and what our culture is. They could have come with cultural programmes in famous places of different cities like the Trafalgar Square, London or may be some place in New York, too. Another basic obstruction is transportation - the Government of Nepal has not been able to provide sufficient number of flights of the Nepali airlines to and from tourist originating areas.</div>
<div>
	&nbsp;</div>
<div>
	<strong>You are also associated with the Kathmandu-Kulekhani-Hetauda Tunnel Road. Could you tell us a little about that?</strong></div>
<div>
	We have been working on the Kathmandu-Kulekhani-Hetauda tunnel road and it is one of the first private sector initiatives in structural design and work. This project seems very promising for transportation. It will assist in the smooth functioning of business and economy. This project also hopes to bring a lot of investments from Samsara UK and a lot from non-resident Nepalis living in UK. There are reasons why these kinds of project are not pacing up in our country. For one, we are still using the traditional way of construction. We still see workers using hammers on the road whereas technology around the globe has taken a leap ahead. Therefore, we are working hand-in-hand with other domestic companies to bring required changes in infrastructure to speed up the pace of work.</div>
<div>
	&nbsp;</div>
<div>
	<strong>You own a company called &lsquo;Samsara Nepal&rsquo; in the UK. What is the function of this company and what are your future plans for Nepal?</strong></div>
<div>
	Samsara Nepal is basically a company for remittance. This company too was an outcome of an incident. I was working in some other company back then in the UK and had sent some money back home which unfortunately went to Mumbai because the company I sent the money through thought Kathmandu was in India, and had written KTM India in the address. The money went to an Indian branch which was in Mumbai. Later, I filed a complaint and resent the money.</div>
<div>
	&nbsp;</div>
<div>
	Sixteen years back, when I first went to the UK, there were no proper and reliable remittance companies to send money through. There was an informal money sending mechanism popularly known as the Hundi system of which the government has no record of. Therefore, we came up with an idea of setting up a company which would provide a safe way to send money back home. We have now been working with Sunrise Bank, Himalayan Bank and Standard Chartered Bank in sending hard earned remittances back home. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Besides sending money from London to Nepal, this company also wants to promote our national economy. Samasara Nepal wants to suggest the government to impose a certain level of taxes on the remittance which immigrants could use after returning back to the country. This would benefit the individual and the nation overall, because while an amount approximately equal to 27 per cent of Nepal&rsquo;s GDP comes in as remittance, it has not been invested in a productive sector as far as I know. The government should focus on capitalizing on remittance by investing it in productive sectors.</div>',
			'published' => true,
			'created' => '2013-09-16',
			'modified' => '0000-00-00',
			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'Raja Ram Giri, an NRN based in London, is Director of Samsara Nepal Financial Services Ltd, the first money transfer company in the UK to be owned by a Nepali. He is also the Managing Editor and Publisher of Himalayas magazine, an annual publication that promotes Nepali tourism in the UK and Europe. Giri spoke to Britant Khanal of The Corporate Weekly about the performance of his businesses in the UK.',
			'sortorder' => '1667',
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	(int) 3 => array(
		'Article' => array(
			'id' => '1723',
			'article_category_id' => '134',
			'title' => '‘Comprehensive Strategy Needed For Hydropower Development’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:14px;"><strong><img alt="Yasing Zhang,Senior Vice President of Sinohydro Resources Ltd, " src="/userfiles/images/yz.jpg" style="float: right; margin: 0px 0px 0px 10px;width: 200px; height: 184px;" />Yasing Zhang</strong> is the Senior Vice President of Sinohydro Resources Ltd, a Chinese multinational hydropower and infrastructure company. Zhang was in Kathmandu to attend the two-day Power Summit 2013. In a tete-e-tete with <strong>Sanjeev Sharma</strong> of The Corporate, he expresses his plan to tap hydropower potential in Nepal.&nbsp;</span></div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Power Summit&nbsp;</span></strong></div>
<div>
	I think, the Power Summit 2013 organised by the Independent Power Producers Association of Nepal (IPPAN) has provided a platform for investors, policy makers and stakeholders to freely express their views and to discuss various topics regarding the hydropower sector. I believe that the discussions helped iron out major hassles prevailing in the sector. In this regard, the Power Summit 2013 has successfully achieved its goal to hasten the pace of hydropower development in Nepal.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">FDI in the Hydropower</span></strong></div>
<div>
	As an investor, we feel that there is an absence of preferential and privilege policies to attract foreign investment in Nepali hydropower projects. There are no incentives in terms of taxes for foreign investors. The tax burden created from provisions of contract tax and value added tax (VAT) is putting pressure on the developers. The absence of proper insurance policies pertaining to hydropower has also been hindering foreign investment. Investments in projects are always at risk in case of natural disaster or big technical failures if there are no proper insurance policies in place.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;It is necessary to formulate investment-friendly policies to attract Foreign Direct Investment (FDI). Thus, policy makers should harmonise existing laws.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Problems for Investors</span></strong></div>
<div>
	Nepal has tremendous hydropower potential. But the country has yet to tap its potential due to several problems mostly linked to project licensing, technical issues as well as legal hurdles. I think the Nepal government should be ready to relax existing hassles on agreement and licensing to ensure timely service delivery. In Nepal, there is no procedure in accordance with international standards to issue Project Development Agreements (PDA), which slows the pace of project development and adversely affects the sentiment of developers. The initial survey licenses of various major projects are held by domestic/foreign developers for several years or even decades. Similarly, there are also issues regarding Power Purchase Agreements (PPA). The fluctuation in foreign exchange rate makes things difficult for power developers as they are more likely to face loss in selling the electricity they generate. These issues should be addressed first hand.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	There are several infrastructure-related constraints. Poor roads, lack of transmission lines, difficulties in conducting projects in remote areas and insufficient supply of construction materials and equipments are other problems in developing a project here. &nbsp;Likewise, awarding a single river basin to many contractors is also adding complications. Some social and political influences such as frequent protests and strikes against particular projects and inadequacy of local skilled staffs are other contributing factors.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Solutions to the Existing Hassles</span></strong></div>
<div>
	Effective policies are needed to solve all aforementioned problems. Developing common standards and procedures concerning hydropower investment will also have positive impact. A common standard and procedures should address issues regarding contract and licenses, company registration, bank account opening and control of foreign currency. Issues regarding the holding of initial license can be solved by cooperation with or transferring from the initial license holder. As far as PDA and PPA are concerned, the government should follow procedures in line with international standards.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	There is an exigency in preferential policy provision on hydropower investments. This includes duty exemption and tax reduction on raw materials, construction equipments, vehicles, and the income of power developers. Convenience on custom clearance and flexibility in work visa will also boost the morale of foreign investors. There are several issues regarding land acquisition by the projects. This issue could be solved by issuing instructive principles of land acquisition. Establishing a general administration on land acquisition and transfer capable of providing guiding land price in different regions and project areas will be the first right step. Secondly, simplifying the land acquisition and transfer procedure is also necessary.</div>
<div>
	&nbsp;</div>
<div>
	One-stop service of hydropower development can deliver effective solutions. For that, the government should set-up a stable and comprehensive agency responsible for hydropower administration in Nepal.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Water Resource Management&nbsp;</span></strong></div>
<div>
	Hydropower development is directly linked to water resource management. If properly managed, the water resource of a single project can be used for various purposes. For this, Nepal needs to identify pilot projects. Those projects should be fairly large enough in terms of power generation. This will help focus efforts in hydropower development. Apart from electricity generation, such projects may also provide water for irrigation and drinking.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Sinohydro&rsquo;s Plan&nbsp;</span></strong></div>
<div>
	Sinohydro Resources Limited is the overseas investment window of Power Construction Corporation of China (Power China). We have been in overseas investment business since 2004 with a registered capital of USD 400 million. We entered the Nepali market in 1995 and successfully accomplished six major hydropower, irrigation and infrastructure projects since then. The Ilam Hydroelectric Project, Modi Hydroelectric Project, Sikta Irrigation Project Phase 1, Sunsari-Morang Irrigation Project, and Bagmati Irrigation Project were handed over to the Nepal government after completion. Similarly, we upgraded the Tansen-Tamghas road project. Currently, Sinohydro is engaged in civil works of Kulekhani 3 and Upper Tamakoshi. Likewise, the 50MW Upper Marsyangdi &lsquo;A&rsquo; hydropower project is being developed with our investment.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Nepal should Take Advantages</span></strong></div>
<div>
	Nowadays, trading of surplus power is becoming a lucrative trade in the world. Nepal can earn substantial amount of money from such trading. I suggest the government and concerned authorities to formulate a master plan of power consumption. The plan should assess domestic requirements and power for export. Similarly, the establishment of a nationwide transmission network is also necessary for electricity export.&nbsp;</div>',
			'published' => true,
			'created' => '2013-09-02',
			'modified' => '0000-00-00',
			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'Yasing Zhang is the Senior Vice President of Sinohydro Resources Ltd, a Chinese multinational hydropower and infrastructure company. Zhang was in Kathmandu to attend the two-day Power Summit 2013. I',
			'sortorder' => '1584',
			'image' => null,
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	(int) 4 => array(
		'Article' => array(
			'id' => '1688',
			'article_category_id' => '134',
			'title' => '‘Malaysia Tourism Aiming 36 Million  Tourist By The Year 2020’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:14px;"><img alt="Amran Abdul Rahman, director of Tourism Malaysia" src="/userfiles/images/mls.jpg" style="
float: left; margin: 0px 10px 0px 0px;width: 200px; height: 239px;" />The World Tourism Organisation has declared Malaysia as the 9th most visited country in the world for the last three consecutive years since 2009 and it has also achieved another feather on its hat by becoming the tenth friendliest country across the globe as declared Forbes Online. What makes Malaysia so especial and to share tourism promotional activities in Nepal, <strong>Amran Abdul Rahman</strong>, director of Tourism Malaysia in a rendezvous with The Corporate Weekly Associate Editor <strong>Sujit Nath</strong> revealed how Malaysia became the hot destination for the tourists from all over the world. <strong>Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>What is purpose your of visit in Nepal?</strong></div>
<div>
	This is for the first time I came to Nepal to get a first-hand experience of the market. Tourism Malaysia is doing market research in Nepal for the last 14 years and so far the response is good. &nbsp;I came here to welcome the people here to Malaysia under our promotional banner of &lsquo;Visit Malaysia Year 2014&rsquo;. A seminar was recently conducted on tourism on August 23 in association with the local tour operators. I look forward for a better relationship with Nepal in terms of tourism.</div>
<div>
	&nbsp;</div>
<div>
	<strong>How you rate Nepal as a market in terms of tourism?</strong></div>
<div>
	I think there is a great market in Nepal and its growing as compared to last year. An average Nepali tourist spends nearly 62,423.76 NPR, which is 2000 Malaysian Ringgit. Tourists from Nepal prefer to stay longer as compare to Indian tourists. So, the more they will stay &mdash; the more we will be able to generate the revenue. In Malaysia people more about Nepal than India because of its long association and common features in terms of lifestyle. But we are happy that response from Nepal and India is so far good.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What category of Nepali tourists prefers Malaysia as their favourite tourist destination?</strong></div>
<div>
	Most of the Nepali tourists come with their family but we have seen in recent years that a large number of youngsters are also exploring Malaysia. In last six months from January to June there was a growth of 33.7 per cent Nepali tourist in Malaysia. This was a significant growth and we are happy that the market is growing. We are confident to serve our best to the Nepali tourist with utmost homely care. It&rsquo;s our privilege to provide a comfortable stay in Malaysia.</div>
<div>
	&nbsp;</div>
<div>
	<strong>The banner &lsquo;Visit Malaysia Year 2014&rsquo; seems inviting with its marketing strategy. Could you please elaborate on that?</strong></div>
<div>
	Well I must say it will be the year of fun and frolic with endless new day-night mesmerising shows. What added more zeal, is the scheduled Grand Prix, which is going to be the show stopper. We are expecting a large number of tourists from across the globe to witness the carnival. For the shopping lovers, we are organizing a big event under the banner of Malaysia Mega Sale festival where the tourists will get all kind of branded lifestyle items in a cheaper price.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Malaysia tourism is doing a lot of promotional activities for Business and customized personal tourism. Could you share your views on the latest trend and response on Business tourism?</strong></div>
<div>
	It&rsquo;s a high end tourism segment and the Malaysia Convention and Exhibition Bureau (MyCEB) &mdash; meant to deal with the business tourism &mdash; has a done a commendable job. There is a rise in the business meetings of some of the big corporate houses in the world. The other areas, which include customized personal tourism packages, are weddings, honeymoon, cruise, luxury tourism etc. We are getting good revenue in these&nbsp;</div>
<div>
	segments too.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Tell me something about the overall all tourism scenario in Malaysia?</strong></div>
<div>
	In 2011, Malaysia recorded 24.7 million tourist arrivals with tourist receipts totaling RM 58.3 billion. In 2012, the country&rsquo;s tourist arrivals and receipts registered more than 25 million RM. The Malaysia Tourism Transportation Plan is targeting 36 million tourist arrivals and RM 168 billion in receipts by the year 2020. Kuala Lumpur was voted as the fourth best shopping city in the world and I am sure with other attractions which we have in Malaysia, we will be able to woo more tourists from Nepal and India.</div>',
			'published' => true,
			'created' => '2013-08-26',
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			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'The World Tourism Organisation has declared Malaysia as the 9th most visited country in the world for the last three consecutive years since 2009 and it has also achieved another feather on its hat by becoming the tenth friendliest country across the globe as declared Forbes Online.',
			'sortorder' => '1549',
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	(int) 5 => array(
		'Article' => array(
			'id' => '1638',
			'article_category_id' => '134',
			'title' => 'Necessities Of Commercial Bench',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<strong style="font-size: 14px;"><img alt="Shreekant Poudel,the spokesperson of the Supreme Court." src="/userfiles/images/BK.jpg" style="float: right; margin: 0px 0px 0px 10px; width: 175px; height: 224px;" />Shreekant Poudel</strong><span style="font-size: 14px;"> Is the spokesperson of the Supreme Court. In an interview with </span><strong style="font-size: 14px;">Britant Khanal</strong><span style="font-size: 14px;"> of The Corporate weekly he shed light on the introduction of commercial bench and its need.</span><strong style="font-size: 14px;"> Excerpts:</strong></div>
<div>
	&nbsp;</div>
<div>
	<strong>Could you highlight the reason behind establishing the commercial bench?</strong></div>
<div>
	The first and foremost reason behind the establishment of this bench is the need for speedy justice, easy access and quick legal remedies for the commercial sector. Even more important is the demand made by the law in many acts after the second Jana Andolan. It is clearly mentioned that such and such cases will be dealt by the commercial bench like for instance in Section Z8 of the Company Act. After 2006, the World Bank had also suggested the requirement of such a bench. The Company Act, the Secured Transaction Act and other acts related to safe competition have mentioned the requirement of this bench. Was this issue initiated by ADB? I don&rsquo;t think so but the ADB had some general interest and it had recommended on bringing such a bench too.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What new prospects will the bench bring? Will it have the same old practices disguised as new?</strong></div>
<div>
	In the process of establishing this bench we had to and we still are training judges, judicial staffs and even lawyers. The training lasts from one to one-and-a-half months as per requirement. The judges who attend the training are only sent to the bench for hearing commercial cases. The new commercial bench will therefore slowly shed some old ways.</div>
<div>
	&nbsp;</div>
<div>
	<strong>There seems to be a paradox in the bench being established for the benefit of the commercial sector while the jurisdiction seems a bit scattered, vague and ambiguous. Could you talk a little about this? &nbsp; &nbsp;</strong></div>
<div>
	We are still in the starting phase of establishing the bench. As per my knowledge, the initial requirement was that of a separate commercial court which came down to establishing a commercial bench in appellate courts. This was required because cases related to the commercial sector are heard in a scattered manner. For example, cases of contract are first heard by the district court, that of patents are heard by the department of industry, and many cases are addressed by the Nepal Rastriya Bank (NRB) too. Therefore, a common institution to streamline all commercial cases and bring them under one umbrella seemed to be necessary.</div>
<div>
	&nbsp;</div>
<div>
	Home work is yet to be completed. It was rightly questioned whether or not offences in banking will be dealt by the commercial bench. The issue is still subject to research and analysis. There are other issues also like that of intellectual property and cases of revenue tribunal. So there is a lot to be done and we are striving to bring all of these cases under the commercial bench.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Has the bench been established in all appellate courts in the country?</strong></div>
<div>
	No, we have not established commercial benches in all appellate courts as they are established in a need-based manner. The previous chief justice had recommended the bench to be established in six places including Pokhara but later it was only established in four places. We therefore have established this bench in five places, Hetauda being the youngest which was established two years back and the other four are Biratnagar, Hetauda, Butwal, Nepalgunj and Patan.</div>
<div>
	<img alt="Cases Regarding Commercial Bench" src="/userfiles/images/cbnch.jpg" style="width: 500px; height: 235px;" /></div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
			<tr>
				<td bgcolor="#FFFFFF">
					<div>
						&nbsp;</div>
					<table align="right" border="0" cellpadding="1" cellspacing="1">
						<tbody>
							<tr>
								<td>
									<img alt="Gandhi Pandit Advocate" src="/userfiles/images/GP.jpg" style="width: 200px; height: 250px;" /></td>
							</tr>
							<tr>
								<td style="text-align: center;">
									<div>
										<strong>Gandhi Pandit</strong></div>
									<div>
										Advocate</div>
								</td>
							</tr>
						</tbody>
					</table>
					<div>
						<h1 style="text-align: center;">
							&lsquo;We are still at the initial stage&rsquo;</h1>
						<div>
							<strong>What is your take on the commercial bench?</strong></div>
						<div>
							The judges must be competent to look at all kinds of cases, but frankly, that is not possible all the time because of growing trade issues in the domestic and global markets and because some of the cases are so sophisticated that they require specialised knowledge and high expertise is not available in the country. Smooth functioning of the economy will require a better legal system which will support rapid growth and development. Therefore, the present context demands a commercial bench to go in hand in hand with the pace of development in order to be able to forge a conducive environment for global as well as domestic investors.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							<strong>Where can we trace the footprints of this system?</strong></div>
						<div>
							This system can be traced to the continental legal system, commonly understood as the French and German legal system. In these systems, we can see the trends of a commercial tribunal, a labour tribunal, an industrial tribunal, among others. In these kinds of tribunals the specialised skills of various sectors are brought for the better understanding of the case. And this system was later followed by Britain and the United States of America. Therefore, this pragmatic approach has led to speedy justice and quick legal remedies in these nations. But in our context, we are still lagging behind. Our judges are still traditional and are only specialised in traditional issues such as cases of land dispute, writ petition, etc. whereas we don&rsquo;t have expertise on cases like letter of credit, IT law, intellectual property law, cases of trademark and so on.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							<strong>What could be the possible remedy to such lacunae and paralysis?</strong></div>
						<div>
							Establishing the bench is one thing and effectiveness is another. As judges are frequently transferred to places without access to such knowledge, they will require training, and attending the training once will not make an impact as there has to be periodic training which we are lacking. Therefore the national judicial academy has been training judges but in the same traditional cases only. Not enough training has been provided in the field of modern commercial issues. Another major problem is procedural delay. These kinds of hurdles will further delay justice and so they will have to be reduced to a minimum. Such deficiencies in the system will give a very wrong message to foreign investors.</div>
					</div>
					<div>
						&nbsp;</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<p>
	&nbsp;</p>',
			'published' => true,
			'created' => '2013-08-19',
			'modified' => '0000-00-00',
			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'The first and foremost reason behind the establishment of this bench is the need for speedy justice, easy access and quick legal remedies for the commercial sector.',
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	(int) 6 => array(
		'Article' => array(
			'id' => '1592',
			'article_category_id' => '134',
			'title' => '‘CAAN Plans To Improve Eight Airports In Remote Areas’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<strong><img alt="Ratish Chandra Lal Suman,Director General of Civil Aviation Authority of Nepal (CAAN)." src="/userfiles/images/rcls.jpg" style="float: right; margin: 0px 0px 0px 10px;width: 200px; height: 219px;" />Ratish Chandra Lal Suman</strong> is the Director General of Civil Aviation Authority of Nepal (CAAN). In an interview with <strong>Raju Baskota</strong> of The Corporate, Suman shared the plans and parameters of CAAN and the International Civil Aviation Organization (ICAO). <strong>Excerpts:&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	<strong>What is the progress made thus far in regulating domestic and international air services and in division of work among service providers?</strong></div>
<div>
	We are in the last phase of regulating air services and the division of work. &nbsp;We are planning to finalize the process by 2015 and our consultants too have provided a report accordingly. CAAN rules need to be amended for the implementation of the report; we need government support for this and are working towards it.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Could you elaborate on the division of work?</strong></div>
<div>
	It is important to form different committees for operating an airport, providing services and deciding its rules and regulations. This is an international practice and was discussed since the establishment of CAAN. But air services were very few then although now it is gradually increasing. A systematic process is needed for work division, which is taking time.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Will differentiating work and regulation services mitigate safety risks?</strong></div>
<div>
	Yes, risk will be mitigated with these measures. Division of work will bring simplicity in work and work load will automatically grow lighter. This in turn will help in risk reduction. We also are expecting to reduce the safety challenges by regulating air services differently on the basis of domestic and international air services.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What have been CAAN&rsquo;s recent achievements?</strong></div>
<div>
	We prioritized improving the standard of our airports by adding new technologies and increasing safety. The Air Traffic Controller (ATC) automation system has begun due to this and new radar will be placed by 2015 too. We are also working on minimizing safety challenges and on improving the management system.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Does CAAN itself devise the budget for the improvement of airports?</strong></div>
<div>
	Government&rsquo;s grants and the total amount of shares invested are kept in the same basket by CAAN. The aviation authority is allowed to allocate its annual revenue and the government&rsquo;s grants to areas as required. With such allocations, we have completed construction of seven airports within the past three years. CAAN is also allocating funds to improve other airports. This fiscal year, CAAN is planning to improve eight airports in remote areas.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What is being done to operate Nepali airline services according to the standards and rules of the International Civil Aviation Organization (ICAO)?</strong></div>
<div>
	CAAN is taking gradual steps for this. Nepal is also working to have safety audits considering ICAO standards. Similarly, we are planning to set parameters for both domestic and international flights, to systemize work process and policies, focusing on the safety of air services. CAAN will request to repair the aircraft&rsquo;s system for landing and take-off and if it is not complete, we will take action accordingly.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>CAAN has added parameters for Air Operator Certificate Requirements (AOCR). Airline companies are calling it impractical. What is your take on the matter?</strong></div>
<div>
	How is it impractical? Airline companies are not behaving as per the requirement of airline services and now they are calling the new AOCR impractical. A company that can bring an airline worth Rs 500 million can obviously pay the required amount for its certification. For the smooth operation of aircraft, we have set a deposit of Rs 2.5 million for helicopters, Rs 5 million for domestic flights and Rs 500 million for international flights. This parameter must be followed.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What is the progress on CAAN&rsquo;s decision to buy an aircraft?</strong></div>
<div>
	CAAN is a regulatory body and is supposed to develop rules and regulations, conduct frequent analyses and training. An aircraft was needed for aviation training. The Authority possessed one aircraft 10 years ago which crashed and has not been replaced since. The Authority has thus allocated Rs 570 million to buy a Twin Otter aircraft. In case this amount is insufficient, some more funds will be provided. We are planning to open a tender to bring a Twin Otter aircraft by September 2015.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>There are rumours that CAAN is buying an aircraft to only serve politicians. What do you say?</strong></div>
<div>
	&nbsp;We have considered the matter of buying an aircraft very seriously. We will form specific parameters to operate it by providing 10 per cent of the maintenance cost for regular services of aircrafts and 90 per cent for business purposes. The maintenance and insurance costs, and additional parts of the aircraft are all included in the fund allocated for its purchase.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Why is the Authority weak in keeping a clear statement of income and expenditure of airports?</strong></div>
<div>
	We are analysing the income-expenditure figures of all airports currently. If we analyse the investment and operation costs of all airports, we can see that every airport including Tribhuvan International Airport (TIA) is making a loss. As for the annual operation of flights, only seven airports in trunk routes, that have maximum passenger flows are in profit.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>CAAN has a budget of Rs 11 million for this fiscal year. Is the construction of new airports included in it?</strong></div>
<div>
	Of the total budget, Rs 7 million has come from government grants and share capital and Rs 4 million has come from the Authority&rsquo;s internal source. The total expenditure of the Authority will mainly go to the construction and capacity enhancement of airports, keeping the government&rsquo;s suggestions in consideration.</div>
<div>
	&nbsp;</div>',
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			'created' => '2013-08-12',
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			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'Ratish Chandra Lal Suman, the Director General of Civil Aviation Authority of Nepal (CAAN) shared the plans and parameters of CAAN and the International Civil Aviation Organization (ICAO).',
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	(int) 7 => array(
		'Article' => array(
			'id' => '1545',
			'article_category_id' => '134',
			'title' => '‘This Budget Supports  A Liberal Economy’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size: 12px;"><strong><img alt="Dr Chiranjibi Nepal,Chief Economic Advisor at the Ministry of Finance." src="/userfiles/images/Dr%20Chiranjibi%20Nepal.jpg" style="float: right; margin: 0px 0px 0px 10px;width: 150px; height: 188px;" />Dr Chiranjibi Nepal </strong>is Chief Economic Advisor at the Ministry of Finance. In an interview with Sweta Sharma of The Corporate weekly, he shed light on the nature of the budget for FY 2013-2014. <strong>Excerpts:&nbsp;</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>To what extent do you think the current budget will boost the economy of Nepal?&nbsp;</strong></div>
<div>
	The country&rsquo;s economy has suffered badly whenever the budget was presented late. After six long years, the government came up with a full-fledged and timely budget concentrating on core areas such as energy, agriculture, infrastructure, education and health. I believe that the timely announcement of the budget is a very positive sign for development and can boost the economy largely. The government has also aimed for a growth rate of 5.5 per cent which is certainly going to be achieved with the budget of the current fiscal year.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Given that the growth rate recorded for the past 10 years has been 3.7 per cent in average, how realistic is this year&rsquo;s target of 5.5 per cent?&nbsp;</strong></div>
<div>
	Late budgets in the past have affected capital expenditure to a large extent. The current budget has taken initiatives which could stimulate the flow of capital expenditure and improve economic activities. The current budget has also addressed important social and economic issues and is advocating for a stronger role of the private sector to spur the economy. In this regard, we can say that, with proper implementation of the budget, 5.5 per cent growth target is achievable.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What major policy changes did the government miss to address in this year&rsquo;s budget and why?&nbsp;</strong></div>
<div>
	I don&rsquo;t think the budget has missed addressing any important issue. The budget as a whole is inclusive as it has considered every sector - social, economic, infrastructure and business. This budget supports a liberal economy. It also encourages the private sector to take the lead. Considering these things, there are not many changes that have to be made for now.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>This budget has brought a number of populist programmes to serve certain political parties. What is your comment on this?&nbsp;</strong></div>
<div>
	I disagree with the statement that the government has brought populist programmes. It has brought programmes that are for everyone. Unlike previous years, the current budget has been least criticised. At the macro level, the budget has brought a long term programmes which is a must to boost the economy. Similarly, the budget focuses more on the private sector. Therefore, the budget is not controversial.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>In hydropower, the budget allocation for transmission lines is largely from donors. The government did not set aside anything for land acquisition. Why this lapse?&nbsp;</strong></div>
<div>
	Yes, to some extent there have been lapses but it is being corrected. The budget allocation for land acquisition is still being processed and the government is contributing to this purpose. The budget has emphasised energy sector with belief in its importance to uplift the economy. The government is concerned about the land acquisition issue and is on the move to provide maximum support. The government plans to eliminate the chronic problem of power outage within the next three years.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Private sector hydropower developers have expressed dissatisfaction since the budget has not provided incentive for private power producers. What are your comments on this?&nbsp;</strong></div>
<div>
	We have to understand that the environment being created for hydropower is itself an incentive. The budget has allocated a huge sum for the energy sector which is also a form of incentive. This has initiated an environment for investment in energy which can later bring profit to the private sector. But merely arranging a budget cannot bring about desired results if not backed by effective implementation. Thus, the government is committed towards effective implementation of programmes that have been put forward.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>The budget has Rs 300 million allocated for export incentives which the private sector says is peanuts. What do you think?&nbsp;</strong></div>
<div>
	Export depends on competition with other countries. To present Nepal as a competitor, the amount allocated for exports is sufficient and very convenient in our context. The private sector has expressed satisfaction in the budget stating that it has attempted to address most of the concerns raised by the business community.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>While the budget speech mentions a deficit of Rs 87.7 billion, budget documents prepared by the Ministry of Finance caps deficit at Rs 40.5 billion. Why such a huge discrepancy?&nbsp;</strong></div>
<div>
	There has been a misunderstanding about the budget deficit. The exact figure for deficit is Rs 87.7 billion. To balance it, the new budget attempted to incorporate limited number of new programmes that are necessary to encourage exports, generate energy and boost the morale of the private sector. In order to improve Nepal&rsquo;s export performance, various issues on the domestic and international fronts have to be addressed.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>A lot of money is allocated clandestinely for financing the losses of public enterprises (PEs). Why can&#39;t the government allocate funds openly for PEs?&nbsp;</strong></div>
<div>
	Public enterprises are incurring losses. To overcome this problem, we are trying to search for partners in Nepal Telecom and Agricultural Development Bank. For other public enterprises, we are preparing to change their structure and to take them towards privatisation. There is a policy to carry out such activities. We are also closing down some enterprises which cannot earn profit and cannot sustain for long.</div>
<div>
	&nbsp;</div>',
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			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'Dr Chiranjibi Nepal,Chief Economic Advisor at the Ministry of Finance shed light on the nature of the budget for FY 2013-2014.',
			'sortorder' => '1406',
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	(int) 8 => array(
		'Article' => array(
			'id' => '1502',
			'article_category_id' => '134',
			'title' => '‘We Are Receptive To Private Sector’s Suggestions For PDA’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The Ministry of Energy (MoE) is in the process of finalising the Project Development Agreement (PDA) for power projects. The Corporate weekly&rsquo;s <strong>Janardan Baral</strong> and <strong>Bishnu Belbase</strong> spoke to <strong>Bishwa Prakash Pandit</strong>, Secretary at the MoE about the issues of draft PDA, Power Purchase Price and power transmission lines. <strong>Excerpts:</strong></div>
<div>
	&nbsp;</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
	<tbody>
		<tr>
			<td>
				<img alt="Bishwa Prakash Pandit, Secretary, Ministry of Energy" src="/userfiles/images/Bishwa%20Prakash%20Pandit.jpg" style="width: 175px; height: 181px;" /></td>
		</tr>
		<tr>
			<td style="text-align: center;">
				<div>
					<strong>Bishwa Prakash Pandit</strong></div>
				<div>
					Secretary</div>
				<div>
					Ministry of Energy</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	<strong>The Ministry of Energy (MoE) is about to finalise the template for Power Development Agreement (PDA). What are the major provisions?&nbsp;</strong></div>
<div>
	The Electricity Act of 2049 still exists and foreign and local investors develop the projects remaining within the parameters set in that Act. The PDA is being practiced in recent years throughout the world to increase the security of investment. Private sector entrepreneurs in Nepal too want PDA system. Frequent changes in policies and tax rates have increased the cost in hydro power development and there are risks posed by natural settings as well. The PDA template will include the issue of how such risks are to be shared. We have included this under &lsquo;force majeure&rsquo;. Similarly, the issue of quality and security are also addressed in the PDA template. As the project is eventually to be transferred to the government, the quality issue is important. The social responsibility of the developer is also necessary to be included. The process of handing over the project to the government and disputes settlement mechanisms are also being included.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>To what extent are the private sector&rsquo;s suggestions going to be included in the PDA template?&nbsp;</strong></div>
<div>
	The private sector&rsquo;s suggestions are largely included in the template. The PDA will balance the profit interest of the private sector with the national interests.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>It is said that the PDA drafted by the MoE is not bankable. Why did not the MoE take care about making the PDA bankable?&nbsp;</strong></div>
<div>
	We do understand that the PDA should be bankable. In case the current template is not bankable then we want suggestions from the private sector to make it so. We are preparing the PDA template to make it private sector friendly and have been receptive to the private sector&rsquo;s suggestions.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Most of the power projects developed by the government suffer time and cost overrun. Why?&nbsp;</strong></div>
<div>
	Nepal is still in the process of drafting the constitution. Political instability has continued in Nepal for quite long. And is the main cause of time overrun in projects. Similarly, frequent change in government brings change in the leadership of the power projects programmes. Also the practice of starting a project without enough funds arranged is to blame for this. Similarly, there is the challenge of getting the support from local communities.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Independent Power Producers&rsquo; Association of Nepal (IPPAN) has urged for change in the Power Purchase rates. How is it possible to consider their demand when the only buyer Nepal Electricity Authority (NEA) is in perpetual loss?&nbsp;</strong></div>
<div>
	It is said that the reason behind NEA&rsquo;s loss is the low electricity tariff. The government has a policy to revise the tariff as required by the time. NEA has thus formed a committee to prepare a model power purchase agreement so as to accommodate the view that the power price should be based on generation cost. The committee is considering also the view that a certain Internal Rate of Return should be assured to the developers.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Why is the delay in inking PPA with the &lsquo;super-six&rsquo; hydropower projects?&nbsp;</strong></div>
<div>
	The government has entrusted the super-six hydropower projects to private power producers selected through a bidding process. But the government is not able to fulfill its commitment regarding these projects. However, the MoE is determined to fulfill those commitments. The problem of these projects is lack of transmission lines. Current FY budget has allocated funds for development of these transmission lines. But this budget allocation alone is not enough to hope that there will be transmission lines. I believe that there has been a great mistake of granting license for the super-six projects before the development of transmission lines. We collected money from the private sector but could not prepare the transmission lines on time. Therefore, the private sector is suffering a lot in this regard. Thus, I commit to create situation for these super-six projects to start construction as soon as possible.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Private sector power producers have been asking for PPA in US dollars and NEA is refusing it. This discourages foreign investment. Is it possible to develop hydropower only from domestic investment?&nbsp;</strong></div>
<div>
	PPA in US dollar will not make any difference if the generated electricity is exported. Nepal&rsquo;s currency is not strong enough and costs have increased by signing PPA for Khimti and Bhote Koshi projects in US dollars. This experience is the reason why NEA is hesitating from PPA in US dollars. The MoE, however, has formed a committee to work for agreements in US dollars.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>FY 2013\14 budget has allocated Rs 13 billion for the hydropower and energy sector, focusing on development of transmission lines. Will the transmission line problem be solved now?&nbsp;</strong></div>
<div>
	It is necessary to have a sufficient budget for transmission lines. Foreign grants are included in the budget for the development of transmission lines. But for land acquisition, which is one of the major problems for the transmission lines, the government itself should allocate a budget from its own resources. This is lacking in the budget. We are currently in dialogue with the Ministry of Finance to solve this problem.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>The budget did not address the demand of the private developers for a waiver of VAT on construction materials used by power projects and other demands of the private sector. Why is this so?&nbsp;</strong></div>
<div>
	We are in the discussion about such demands from the private sector. A conclusion is yet to be arrived at on this. So it was not included in the budget. We are, however, determined to encourage the private investors.&nbsp;</div>
<div>
	&nbsp;</div>',
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			'description' => 'The Ministry of Energy (MoE) is in the process of finalising the Project Development Agreement (PDA) for power projects.',
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	(int) 9 => array(
		'Article' => array(
			'id' => '1405',
			'article_category_id' => '134',
			'title' => '‘We Are Soft Now, Shall Be Strict Soon’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:14px;">Jiwan Prava Lama is the Director General of Department of Food Technology and Quality Control (DFTQC). In an interview with The Corporate&rsquo;s Suraksha Adhikari, she talked about the present controversy about dairy products in Nepal and highlighted the plans of DFTQC for improving quality of foods in Nepali market. <strong>Excerpts:&nbsp;</strong></span></div>
<div>
	&nbsp;</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
	<tbody>
		<tr>
			<td>
				<img alt="Jiwan Prava Lama,Director General of Department of Food Technology and Quality Control (DFTQC)" src="/userfiles/images/lama.jpg" style="width: 250px; height: 309px;" /></td>
		</tr>
		<tr>
			<td style="text-align: center;">
				<div>
					<strong>Jiwan Prava Lama</strong>,</div>
				<div>
					Director General</div>
				<div>
					Department of Food Technology and Quality Control</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	<strong>Your department has reported that sub-standard and non-edible foods are freely traded in the market. Does it imply a failure of regulators?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	There are 181 standards for food. Within those standards there are 10 categories with various parameters. If the manufactured food doesn&rsquo;t meet a single parameter, we consider it as a non-parameter. We do report such cases but food products that do not meet every parameter cannot be considered adulterated. Some of them are non-conformant, sub-standardized, and some are adulterated. All of these foods are not non-edible. Some of them can be eaten after applying some safety measures.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	We do not consider it as a failure of regulators as it comes under the food safety chain. The quality of food has to be ensured right from its production to the time it reaches the dining table. The food should be checked during production, packaging and even during consumption as even the wrong way of consumption can decrease its quality.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Your department&rsquo;s report on milk products in Kathmandu has caused a drastic reduction in consumption of processed milk, threatening both the dairy industry and dairy farming. What is your comment?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Our department monitored 14 dairy industries and collected 17 samples of milk. Among them, none had met all the parameters. A minimum of two percent of coliform was found in the milk, which does not meet our standard. In such a situation, certain actions are necessary to minimize such irregularities. We are taking action upon these dairies because of which consumption might have decreased. The government too has formed the National Dairy Development Board in order to reduce the adulteration of milk, thereby increasing its quality.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>You are also the head of Nepal Food Scientists and Technologists Association (NEFOSTA). What can your association do for resolving these issues?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	NEFOSTA can play the role of an agent between the government and the industries and fill the gap of technical manpower in companies. There is a lack of skilled manpower in the dairy business because of which these problems are emerging. Our association can help the government by providing technical manpower to ensure quality food.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>It is alleged that your department&rsquo;s campaign against contaminated milk is discriminatory as it punished Nepali dairies while imported milk was not checked. What is your comment?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Our department verifies the quality of milk within certain standards, norms and policies of the department. There are processes that we have to go through when we are performing each and every task. We are checking the quality of milk only on the basis of coliform now and penalizing those dairies where 0-1000 units of coliforms are found in the milk produced by them. Until now, we have been focusing on some soft punishments but we are moving towards some strict action soon.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Your department is criticized also because it has come down harshly on registered dairies and neglected the unregistered ones, discouraging people from registering their dairies and coming under government tax net. What do you have to say?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	It is the duty of local bodies of the concerned area to look after the registration of industries. Our task is to monitor the registered ones. If the local bodies perform their tasks properly, we could perform our work more effectively. But in our country, concerned sectors are not aware of the responsibilities provided by the law. Though the non-registered dairies don&rsquo;t come under our scope of work, we are planning to investigate even them. We have not been able to go ahead for examining the quality of local dairies due to lack of skilled manpower, but we will be involving ourselves with them gradually.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Five dairies are sealed by the government for contamination. What is your take on this?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	We have sealed those dairies for the sake of improving the quality of milk. During the survey of dairies, those which failed to meet certain standards were sealed. But we are liberal on this issue as we can give permission to re-open the sealed diaries if they improve their standards. This action is a warning to the dairies to focus on quality production of milk. Kharipati Dairy was also sealed but when it improved its quality, we permitted its operation to resume.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What further plans does the department have to increase the quality of food?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Presently, we are focusing on quality assurance of milk. There is still so much to be done in the issue of water contamination. After this, we are going into water purification. Sample collection is being done for the inspection of water.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Further, we will be focusing on other domestic products and import-export products. Only goods that meet the legal provisions of Nepal and familiar to consumers here should be imported. We have also discussed with the government to work on the classification of the industries and in maintaining the standard of the Nepali market by developing good management practice in the market to assure Nepali people of quality goods.</div>
<div>
	&nbsp;</div>',
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			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'Jiwan Prava Lama is the Director General of Department of Food Technology and Quality Control (DFTQC). In an interview with The Corporate’s Suraksha Adhikari, she talked about the present controversy about dairy products in Nepal and highlighted the plans of DFTQC for improving quality of foods in Nepali market',
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		'Article' => array(
			'id' => '1328',
			'article_category_id' => '134',
			'title' => '‘No To Another Merger Right Now’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<table align="right" border="0" cellpadding="1" cellspacing="1">
	<tbody>
		<tr>
			<td>
				<img alt="Tulasi R. Gautam,CEO,MachhapuchchhreBank Limited" height="209" src="https://lh4.googleusercontent.com/-M_eOSiFZvNc/UdqK3UNMT2I/AAAAAAAAA8o/wwW6sZVBcN0/s512/Tulasiu.jpg" width="200" /></td>
		</tr>
		<tr>
			<td style="text-align: center;">
				<b>Tulasi R. Gautam<br />
				</b>CEO<br />
				Machhapuchchhre Bank Limited</td>
		</tr>
	</tbody>
</table>
<p>
	<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
	<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped?&nbsp;</strong></p>
<p>
	It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
	<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank?&nbsp;</strong></p>
<p>
	NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger.&nbsp;</p>
<p>
	<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason?&nbsp;</strong></p>
<p>
	It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank.&nbsp;</p>
<p>
	<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it?&nbsp;</strong></p>
<p>
	Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
	<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming?&nbsp;</strong></p>
<p>
	There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned.&nbsp;</p>
<p>
	<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion?&nbsp;</strong></p>
<p>
	It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
	<strong>After the merger there is generally chaos among the staffs. How did you manage it?&nbsp;</strong></p>
<p>
	When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
	<strong>How do you evaluate the present situation of commercial banks?&nbsp;</strong></p>
<p>
	Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good.&nbsp;</p>
<p>
	<strong>What are the existing problems in the banking sector?&nbsp;</strong></p>
<p>
	The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
	<strong>It is said that banking sector suffers lack of skilled manpower. Is it true?&nbsp;</strong></p>
<p>
	It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well.&nbsp;</p>
<p>
	<strong>These days the operational risks are getting high in banking sector. How do you consider this?&nbsp;</strong></p>
<p>
	It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk.&nbsp;</p>
<p>
	<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this?&nbsp;</strong></p>
<p>
	It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
	<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties?&nbsp;</strong></p>
<p>
	Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
<div>
	 </div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
</table>
<p>
	 </p>',
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			'description' => 'Tulasi R. Gautam, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal.',
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			'id' => '1169',
			'article_category_id' => '134',
			'title' => 'Ajay Shrestha',
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			'content' => '<p>
	<span style="font-size: 20px;"><strong>‘We are securing our banking further, and bringing more people into the system’</strong></span></p>
<p>
	<img align="left" alt="" height="211" src="https://lh3.googleusercontent.com/DAJx8o_ZsL9-ZJvyFsvqbAJYWU3U37zniTin6BXFds8=w147-h207-p-no" width="150" /></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>Ajay Shrestha CEO, ank of Kathmandu (BOK)</strong></p>
<p>
	<strong>Ajay Shrestha is the CEO of Bank of Kathmandu (BOK). In an interview with Sweta Sharma of The Corporate, Shrestha talked about challenges in the banking sector. Excerpts: <br />
	</strong></p>
<p>
	<strong>How have you evaluated BOK’s performance during the last two years? </strong><br />
	The bank’s financials have been stable for the last three years. The bank is also in a reasonable state in terms of profitability.&nbsp;</p>
<p>
	<strong>What are the challenges facing the bank and the entire sector in general? </strong><br />
	As the core market for the banking sector is still not developed in the country, there is a cut-throat competition among banking and financial institutions to get the maximum share of this limited pie. The cost level has also increased with increasing competition. Thus, it is very challenging for a bank to survive in such a competitive market.&nbsp;</p>
<p>
	<strong>The central bank has recently introduced changes to the account opening procedures. What is your take on the changes? </strong><br />
	NRB has recently directed banks to implement a new system, called Know Your Costumer, to keep better records of clients. We welcome the new system. But it definitely has made it difficult for banks to run smoothly.</p>
<p>
	NRB has come up with this new procedure at a time when majority of people still do not have access to banking. But now the procedure has been implemented to some extent. In my view, there are still large numbers of people who need to be encouraged to comply with the new system.</p>
<p>
	<strong>The central bank has said plans to increase the minimum paid up capital requirement for commercial banks to Rs 500 million. What is your bank’s strategy? </strong><br />
	The central bank is yet to decide on the issue. If NRB does increase the paid up capital requirement to Rs 500 million, we will comply with the directive. Earlier, we were successful in meeting the paid up capital requirement of Rs 200 million using our own sources.</p>
<p>
	<strong>The operational risks in banks have been reported to be quite high. How are you coping with that?</strong> <br />
	Operational risks are inherent in the banking sector all over the world. As more and more customers start using banking services, banks have no option but to switch to advanced banking procedures. The risks need to be addressed and minimised. We are complying with all prevailing laws to deal with operational risks. We are continuously reviewing our banking processes to make them more secure.</p>
<p>
	<strong>BOK launched a special scheme to invest in SMEs (small and medium enterprises) and clean energy. How has the experience been so far? </strong><br />
	SMEs are relatively new to Nepali banks. There are is no fixed definition of a small enterprise. It has been around four months since our bank started its SMEs scheme. The process of SME financing is not easy. A lot of research needs to be done before issuing loans.</p>
<p>
	In this regard, we are running financial literacy programmes for prospective SMEs, especially outside the valley. As part of the programme, we are working on building the knowledge base among people to help them understand the banking system. This has helped encourage people to some extent. <br />
	Clean energy is basically associated with environment. We are taking SME and clean energy schemes together.</p>
<p>
	<strong>While most banks have already adopted branchless banking, BOK is still to do so. Why is the bank so slow in adopting new technology? </strong><br />
	Switching to branchless banking requires equipment and investment. We do not rush to adopt new technology as we are very conscious about the outcome a change may bring in. At the same time, we are also into increasing our customer base. Our main mission is to bring more people into the banking system. We are mainly focused on sustaining our bank as a whole.</p>
<p>
	We are planning to provide branchless banking service at 11 locations for now. At the end of the fiscal year, we will be running branchless banking from 25-30 locations. Similarly, we will launch mobile banking soon.</p>
<p>
	<strong>Would you like to say something to your customers? </strong><br />
	We have increased our customer base to 2.5 lakh from 90,000 within three years of time. This is very encouraging for our bank. We want to double the number of customers in the next few years. Our greatest achievement is that we have 50 outlets. We also have 57 ATM counters. We have been successful in meeting our targets till now.<br />
	<br />
	 </p>',
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			'title' => 'Swagat Shrestha',
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			'content' => '<p>
	<strong>‘Need fusing science and technology with business’<br />
	</strong><br />
	Swagat Shrestha is the Chairperson of Higher Secondary School’s Association of Nepal’s Kathmandu Chapter (HISSAN KTM). Sweta Sharma of The Corporate Weekly talked with Shrestha about overall education system of Nepal, its reforms, problems and challenges. Excerpts: <br />
	<br />
	<br />
	<strong>How do you evaluate the present education system of Nepal? <br />
	</strong><br />
	Education system of Nepal has improved in a satisfactory way. There have been improvements in courses and vocational and business education are introduced in government schools and colleges. <br />
	<br />
	<br />
	<strong>Comparing with the last year, SLC pass percentage is quite low this year. What do you think might be the reason behind it? <br />
	</strong><br />
	The government has allocated 17 per cent of budget for education. Looking at this, the SLC pass percentage is quite discouraging. This is an issue to be considered seriously. In cities like Kathmandu, we do have 80-90 pass percentages. But the government schools mainly those of out of valley have only 10- 12 pass percentage. Earlier, many schools openly helped students cheat in SLC exams. This year, the examination was very strict, and the papers were also evaluated strictly which might have caused this decline. <br />
	<br />
	<br />
	<strong>One of Nepal’s Millennium Development Goals is to have 100 per cent enrollment in primary school. To what extent do you think it would be possible? <br />
	</strong><br />
	These days, people are quite aware of the importance of education and literacy. Especially in villages, more and more people are being aware about education and we must thank political parties for this as they keep visiting villages for various awareness programmes. This has led to expect some good changes in education sector and I do think there is the possibility of educating a huge portion of the population. <br />
	<br />
	<br />
	<strong>What major reforms do you think are necessary for Nepal’s education system? <br />
	</strong><br />
	The education system of Nepal is city-oriented as must of educational institutions are located in the major cities. Private sector is basically surviving on its own and they have the inclination towards staying where they see good business possibility. It is government’s responsibility to provide education free of cost but instead there is impractical policy that requires educational institutions to pay VAT like tax to the government. <br />
	<br />
	But above all, the major problem of Nepal is political instability and it has affected almost every sector. Every sector is politicized and education sector is also affected largely. Also, we are copying the foreign curriculum and that cannot always be relevant for us. The education system should rather be based on our country’s need and demand. People need to set an example by contributing in Nepal so that the future generations too could be encouraged to stay in Nepal. And if the government educational institutions could provide better education, then the private ones can gradually phase out. <br />
	<br />
	<br />
	<strong>Government has failed in creating satisfactory long term education policies. What are your comments on this? <br />
	</strong><br />
	This is all due to unstable government. The frequent change in government is affecting policies to sustain in the long term. Reforms, policies, rules and regulations get changed with the change of government. Even though the policies are good, it definitely will be changed with new government, and it is so frequent. Still we can hope for positive changes in educational sector as there are possibilities. <br />
	<br />
	<br />
	<strong>What is your suggestion to keep education sector free from political intervention? <br />
	</strong><br />
	The unhealthy competition among major political parties has brought this problem of intervention in every sector request all the major political parties to leave at least the schools free from politics. The political parties should point out the weakness of private educational institutions and we are ready to do our best to overcome those weaknesses. This will help to run the education sector more peacefully. <br />
	<br />
	<br />
	<strong>Students seem to be more attracted towards A-level courses in the recent days. Why is +2 education gradually losing the attraction? <br />
	</strong><br />
	I disagree to this because more number of students are still attracted to +2 colleges. A-level course is of international standard and is also quite expensive. I think A-level degree is not suitable for Nepal. The majority of the students are in +2 colleges rathen than in A-level colleges. Yes, I do agree that the courses are quite advanced in A-level, but it also has its own problems. <br />
	<br />
	<br />
	<strong>It is quite confusing to choose good educational institutions. What do you suggest to the students and guardians? <br />
	</strong><br />
	Distance matters a lot, so it is better to choose those institutions which are quite near to your residence as it would consume less time. There should be enough information about the people who are running the institutions. Educationists can run the institutions well and they will be more inclined towards providing better education. Results of past few years should also be taken into consideration. In addition, the institutions should possess basic infrastructure and facilities where students could find an environment to boost their abilities. If these parameters are considered, it will be relatively easier to select a good school or college. <br />
	<br />
	<br />
	<strong>What unique characteristics do you think your institution Kathmandu Valley College (KVC) possesses when compared to the other colleges? <br />
	</strong><br />
	We have daily evaluation system where every student is supposed to appear in test at the end of the day. In this regard, I can say that our evaluation system is unique. We organize seminars and presentations every Friday to boost the students’ communication and presentation skills. We are also focused on promoting our culture. We also provide ‘Joyful Parenting Training’ where parents and students can interact with each other properly to understand each other’s point of view. We also provide job placement trainings to the students. Broadly speaking, we provide our students with reality based education. <br />
	<br />
	<br />
	<strong>What new programs are you going to introduce in near future which you think will be beneficial to boost the education system of Nepal? </strong><br />
	<br />
	We are going to provide professional computer training to students and we will also certify it. In coming year, we are adding BBA and MBA level according to the demand of students and the market. But our college is more focused on science and technology which is very important for Nepal’s development. We need fusing science and technology with business. This will help to increase the value of products and it ultimately will help to boost Nepal’s economy as well. It also will make our education system more advanced.<br />
	 </p>',
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			'id' => '1874',
			'article_category_id' => '134',
			'title' => '‘Flagship Carrier Should Be Revived For Tourism Growth’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:16px;"><img alt="Sagar Pandey" src="/userfiles/images/inter.jpg" style="float: right; margin: 0px 0px 0px 10px;width: 200px; height: 186px;" />The thought that the private sector should now take the lead in boosting the tourism industry is gaining momentum. That one in four visitors to Nepal go trekking should say something about the popularity of this activity in the country. Around 1000 trekking agencies are affiliated with the Trekking Agencies&rsquo; Association of Nepal (TAAN).&nbsp;Sagar Pandey, Executive Chairman of the Himalayan Glacier Trekking, was elected as the General Secretary of TAAN at the recently held general convention of the association. &nbsp;The Corporate&rsquo;s &nbsp;Sagar Ghimire, spoke to Pandey this week about the challenges and problems of trekking agencies and their role in private sector-led tourism development. <strong>Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Can it be inferred from the political leverage seen during the general convention of TAAN that the association is under the control of political parties rather than trekking agencies?</strong></span></div>
<div>
	Though I cannot rule out the inclination of an individual towards a certain political party, TAAN is a purely professional association representing professional trekking agencies. We do not hold any political baggage so we are a non-political entity.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">What are the challenges and problems in running trekking agencies?&nbsp;</span></strong></div>
<div>
	Tax/VAT for this service sector, illegal trekking operations threatening our cottage industries and penetration of international investment in this business, among others, are short term challenges we are dealing with. Long term problems include the collapse of trekking routes due to the expansion of roads, development of tourism infrastructure, developing new trekking trails, promoting tourism and policy reforms.</div>
<div>
	&nbsp;</div>
<div>
	Also, since this is a service sector, 13 per cent VAT/tax is too high for us to afford. It is not judicious to charge the service sector VAT as much as the manufacturing sector is charged. All entrepreneurs should be brought under the VAT, and the government should lower it to 4/5 per cent as is the international practice.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Are trekking agencies dissatisfied with the government&rsquo;s attitude for tourism development?</strong></span></div>
<div>
	The recently commemorated international tourism &nbsp;day was just an opportunity for the government to repeat its rhetoric on the importance of tourism for the country&rsquo;s economic growth. Unfortunately, no effective plans toward such sector were presented. There is no research on how tourists make their plans, what the international trends are in tourism, why tourists come to Nepal, and what should be our strategies. Even after one and a half years of the completion of Nepal Tourism Year (NTY), the report of the event is yet to be prepared. How do you review the performance of stakeholders with this laid back approach?</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What are the marketing and promotional plans of TAAN to brand Nepal as the world&rsquo;s best trekking destination in the international market?</strong></span></div>
<div>
	Apart from participating in world exhibitions and trade fairs and using international media, we think reviving our flagship national carrier Nepal Airlines Corporation which connects Nepal to the world can double the number of tourists. Provided that our national carriers has flights to multiple countries, the arrival of tourists can increase significantly. We will pressure the government for this.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>It is said that the price undercutting by trekking agencies is responsible for the decline of tourists&rsquo; spending despite a rise in their numbers. What will TAAN do to curb such practices?</strong></span></div>
<div>
	With the lack of correct data, we make evaluations through hypotheses or the record of the World Bank or other multilateral agencies. The concerned agency should come up with a proper data keeping system which will help us address this problem. Undercutting of price also results from a competitive market. Gone are the days when tourists used to come without information of the price. We cannot fix the price of any package in a free market. However, we can only create awareness about ethical practices through various forums. We cannot stop them even if they run their agencies on a loss by providing services at low prices.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Acknowledging the role of the private sector, a provision has been made for the private sector&rsquo;s representation in the Nepal Tourism Board. What is your assessment of its performance?</strong></span></div>
<div>
	Interactions with representatives of the tourism sector, have shown that the planning, execution and other roles of the NTB have not been up to our expectations. The post of Chief Executive Officer of NTB has been vacant for the past two years. We maintained that there should be representation on the board of NTB from professional associations like TAAN and NATTA. Only this can ensure true representation of the private sector as well as avoid controversies and politicisation.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What are some future plans in developing new trekking trails?&nbsp;</strong></span></div>
<div>
	There is a need for parallel trails where previous ones have collapsed due to road expansion. Since our geography is complicated, we must collaborate with the government for developing trekking trails. We have been stuck with the same old trails like Annapurna and Langtang trails, but we have to make new trails that encompass the mountains stretching across the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>How is revenue collected from the distribution of Trekkers&rsquo; Management Information System (TIMS) cards?</strong></span></div>
<div>
	The revenue of TIMS is for developing infrastructures, promoting, conserving and maintaining trekking trails. A committee was formed for the monitoring of the TIMS revenue. We will plan to spend this money constructively following the report from this committee.&nbsp;</div>',
			'published' => true,
			'created' => '2013-09-30',
			'modified' => '0000-00-00',
			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'The thought that the private sector should now take the lead in boosting the tourism industry is gaining momentum. That one in four visitors to Nepal go trekking should say something about the popularity of this activity in the country. Around 1000 trekking agencies are affiliated with the Trekking Agencies’ Association of Nepal (TAAN). Sagar Pandey, Executive Chairman of the Himalayan Glacier Trekking, was elected as the General Secretary of TAAN at the recently held general convention of the association.',
			'sortorder' => '1735',
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	(int) 1 => array(
		'Article' => array(
			'id' => '1845',
			'article_category_id' => '134',
			'title' => '‘Nepal Has The Capacity To Emerge As An Outsourcing Base Camp',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	&nbsp;</p>
<div>
	Khem Raj Bhattarai is the founder and CEO of KRB Software Pvt Ltd. As an emerging software developer, the company is focused on producing management system products along with other services. Bhattarai talked to Sanjeev Sharma of The Corporate about the company&#39;s plans and his views on the Nepali software industry. Excerpts:</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What products and services does KRB Software offer?</strong></div>
<div>
	&nbsp;</div>
<div>
	We are basically offering 16 software products. We are producing management system software products under the Kohinoor brand which are targeted to clients such as educational institutions, hotels/restaurants, hospitals/ clinics/ pharmacy, co-operative financial institutions, shopping malls, manpower, educational consultancies etc. We are also producing products for accounting, inventory control, point of sale (POS), human resource management and customer relation management. Besides these, we provide tailor-made software according to the need and demand of clients, tech consulting and software prototyping.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Besides these, what other projects are currently being worked on?</strong></div>
<div>
	&nbsp;</div>
<div>
	Currently we are focused on management system products. We plan to launch other service related products in the near future. KRB Software is planning to expand the hotel management system. We are also designing portals that will help individuals and companies manage their day-to-day work. Similarly, we are also looking to introduce some services based on business-to-consumer (B2C) and business-to-business (B2B) concepts.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>The majority of KRB&#39;s software is built using a web-based platform that can be accessed through mobile devices. Do you have any plan to enter the mobile application market?</strong></div>
<div>
	&nbsp;</div>
<div>
	Mobile devices are making computing tasks a lot easier. Regarding this, we are developing software using web-based platforms which allow the users to access the products through their mobile devices. The company is planning to enter the mobile apps markets and a mobile application developer team has been formed for the purpose. We are looking to develop the existing management system software products into mobile apps too. We are also planning to develop mobile games and astrology apps.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>While talking about software, security always emerges as a major concern. How do you ensure the security of your products?</strong></div>
<div>
	&nbsp;</div>
<div>
	In terms of data and system security, I can ensure you that our products are 100 per cent secure. The software are developed using the latest technology which are well shielded and protected. We provide a world class security system which cannot be breached by hackers. We have also developed a system which tracks our software products that are installed into the computers of individual clients. However, for optimal level of security, the machines of clients too should be well protected.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What is the response from your clients? How do you assess the prospect of tailor-made software to cater to the needs of Nepali clients?</strong></div>
<div>
	&nbsp;</div>
<div>
	We are fully satisfied with the warm response from Nepali clients. Our domestic clients are gradually leaning towards locally produced software products. The user-friendly system, flexibility and customization are some of the main factors attracting Nepali clients.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What are the benefits of using software produced by your company compared to the products of big international names?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	As far as I know, there are very few management system software available in the Nepali market. Products from big international developers are not able to fulfill the need of Nepali clients. Our products are developed by Nepali engineers, developers and designers who are well aware of the needs of domestic clients. Besides this, our software products are also reasonably priced and highly efficient compared to foreign brands. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>KRB Software has outsourced for some Fortune 500 companies. How do you assess the prospect of an outsourcing market in Nepal?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Yes, we have done outsourced tasks for some big multinational companies in the past. However, we experienced that the outsourcing market in Nepal is poorly managed. There is no policy regarding IT outsourcing. The banking rules of our country won&#39;t let us do direct financial transaction with the foreign companies. For instance, the Nepali financial system is not linked with the global online payment gateway PayPal. This is causing a big problem for receiving payments from foreign firms. Likewise, the outflow of IT manpower from the country is another problem. &nbsp;Nepali outsourcing market can witness a rapid growth if these issues are properly addressed. The outsourcing market could be a major foreign currency earner if properly taken care of. Looking at the current scenario of manpower production (software engineers, programmers, designers etc), Nepal possesses the capacity to emerge as an outsourcing base camp in Asia.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Nepal is witnessing a steady growth of software market. What are the challenges underlying the market?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Sales of product and service are the most challenging aspects. We have to ensure our clients about security and convince them that the products will fulfill their needs. Pricing of the products is another challenge. Many developers are selling unbranded products at very cheap prices which is hampering healthy competition in the market. This is somehow affecting developers like us who are committed to sell quality products developed using standard procedures.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Are Nepali software developers getting any help from the government?</strong></div>
<div>
	&nbsp;</div>
<div>
	Sadly, the government is not helping the Nepali software industry. Many government offices and projects are using foreign products that cost thousands of dollars. This is resulting in a huge amount of capital flight. We can develop any type of high quality software products that will fulfill the need of governmental tasks. The government should start using locally produced software which will be of great help to us. We also encourage people to use domestic software products hoping that it will reduce capital and human resource flight from Nepal.&nbsp;</div>
<div>
	<br />
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-09-23',
			'modified' => '0000-00-00',
			'keywords' => 'new business age  interview news & articles, interview news & articles from new business age nepal, interview headlines from nepal,  current and latest interview news from nepal, economic news from nepal, nepali interview economic news and events,  ongoing  interview news of nepal',
			'description' => 'Khem Raj Bhattarai is the founder and CEO of KRB Software Pvt Ltd. As an emerging software developer, the company is focused on producing management system products along with other services. Bhattarai talked to Sanjeev Sharma of The Corporate about the company's plans and his views on the Nepali software industry. Excerpts:',
			'sortorder' => '1706',
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	),
	(int) 2 => array(
		'Article' => array(
			'id' => '1806',
			'article_category_id' => '134',
			'title' => '‘Nepal Needs Urgent Reforms, Not Tourism Year Gimmick’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:14px;"><strong><img alt="Raja Ram Giri," src="/userfiles/images/iv.jpg" style="float: left; margin: 0px 10px 0px 0px;width: 200px; height: 221px;" />Raja Ram Giri</strong>, an NRN based in London, is Director of Samsara Nepal Financial Services Ltd, the first money transfer company in the UK to be owned by a Nepali. He is also the Managing Editor and Publisher of Himalayas magazine, an annual publication that promotes Nepali tourism in the UK and Europe. Giri spoke to Britant Khanal of The Corporate Weekly about the performance of his businesses in the UK.<strong> Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>What is the concept behind launching a magazine like Himalayas in the UK? Who are its readers and what has been the response thus far? &nbsp;&nbsp;</strong></div>
<div>
	This magazine was not the reason why I went to UK. Initially, I wanted to study Information Technology. I was studying at a university where there were no students from our side of the world which made me feel very alien. One day a professor told me that he had been to my country. But when he described what he saw, I realized he was talking about Darjeeling, not Nepal. That was when I quit IT and shifted to Tourism Studies and planned to do something that would make the world recognize my country. So, this magazine was an outcome of my ego and pride. It has been doing a decent job in making our country known in London and many parts of Europe. &nbsp; &nbsp;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What has your role been so far in promoting Nepali Tourism to the rest of the world?</strong></div>
<div>
	When I started studying tourism, Nepal was celebrating the Visit Nepal Year 1998. &nbsp;Since the country was celebrating a national festival, I thought of doing something along the same lines, and then contacted the Nepali embassy in the UK. With their help, I held a small cultural programme at my college in front of almost 1,300 students explaining what Nepal is and what it looks like. The programme was very much appreciated. Since then, I have been doing the same job trying to tell people how beautiful my country is and taking pride in it. &nbsp; &nbsp; &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What are some tangible hindrances seen in promoting Nepali tourism to the rest of the world?</strong></div>
<div>
	What our politicians have to understand is that declaring a tourism year will not bring tourists. They will have to work on tourism policies to attract tourists instead of showering flowers from helicopters on the day of declaration and spending millions on inaugurals. They will have to explain to tourists what Nepal looks like and what our culture is. They could have come with cultural programmes in famous places of different cities like the Trafalgar Square, London or may be some place in New York, too. Another basic obstruction is transportation - the Government of Nepal has not been able to provide sufficient number of flights of the Nepali airlines to and from tourist originating areas.</div>
<div>
	&nbsp;</div>
<div>
	<strong>You are also associated with the Kathmandu-Kulekhani-Hetauda Tunnel Road. Could you tell us a little about that?</strong></div>
<div>
	We have been working on the Kathmandu-Kulekhani-Hetauda tunnel road and it is one of the first private sector initiatives in structural design and work. This project seems very promising for transportation. It will assist in the smooth functioning of business and economy. This project also hopes to bring a lot of investments from Samsara UK and a lot from non-resident Nepalis living in UK. There are reasons why these kinds of project are not pacing up in our country. For one, we are still using the traditional way of construction. We still see workers using hammers on the road whereas technology around the globe has taken a leap ahead. Therefore, we are working hand-in-hand with other domestic companies to bring required changes in infrastructure to speed up the pace of work.</div>
<div>
	&nbsp;</div>
<div>
	<strong>You own a company called &lsquo;Samsara Nepal&rsquo; in the UK. What is the function of this company and what are your future plans for Nepal?</strong></div>
<div>
	Samsara Nepal is basically a company for remittance. This company too was an outcome of an incident. I was working in some other company back then in the UK and had sent some money back home which unfortunately went to Mumbai because the company I sent the money through thought Kathmandu was in India, and had written KTM India in the address. The money went to an Indian branch which was in Mumbai. Later, I filed a complaint and resent the money.</div>
<div>
	&nbsp;</div>
<div>
	Sixteen years back, when I first went to the UK, there were no proper and reliable remittance companies to send money through. There was an informal money sending mechanism popularly known as the Hundi system of which the government has no record of. Therefore, we came up with an idea of setting up a company which would provide a safe way to send money back home. We have now been working with Sunrise Bank, Himalayan Bank and Standard Chartered Bank in sending hard earned remittances back home. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Besides sending money from London to Nepal, this company also wants to promote our national economy. Samasara Nepal wants to suggest the government to impose a certain level of taxes on the remittance which immigrants could use after returning back to the country. This would benefit the individual and the nation overall, because while an amount approximately equal to 27 per cent of Nepal&rsquo;s GDP comes in as remittance, it has not been invested in a productive sector as far as I know. The government should focus on capitalizing on remittance by investing it in productive sectors.</div>',
			'published' => true,
			'created' => '2013-09-16',
			'modified' => '0000-00-00',
			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'Raja Ram Giri, an NRN based in London, is Director of Samsara Nepal Financial Services Ltd, the first money transfer company in the UK to be owned by a Nepali. He is also the Managing Editor and Publisher of Himalayas magazine, an annual publication that promotes Nepali tourism in the UK and Europe. Giri spoke to Britant Khanal of The Corporate Weekly about the performance of his businesses in the UK.',
			'sortorder' => '1667',
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	(int) 3 => array(
		'Article' => array(
			'id' => '1723',
			'article_category_id' => '134',
			'title' => '‘Comprehensive Strategy Needed For Hydropower Development’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:14px;"><strong><img alt="Yasing Zhang,Senior Vice President of Sinohydro Resources Ltd, " src="/userfiles/images/yz.jpg" style="float: right; margin: 0px 0px 0px 10px;width: 200px; height: 184px;" />Yasing Zhang</strong> is the Senior Vice President of Sinohydro Resources Ltd, a Chinese multinational hydropower and infrastructure company. Zhang was in Kathmandu to attend the two-day Power Summit 2013. In a tete-e-tete with <strong>Sanjeev Sharma</strong> of The Corporate, he expresses his plan to tap hydropower potential in Nepal.&nbsp;</span></div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Power Summit&nbsp;</span></strong></div>
<div>
	I think, the Power Summit 2013 organised by the Independent Power Producers Association of Nepal (IPPAN) has provided a platform for investors, policy makers and stakeholders to freely express their views and to discuss various topics regarding the hydropower sector. I believe that the discussions helped iron out major hassles prevailing in the sector. In this regard, the Power Summit 2013 has successfully achieved its goal to hasten the pace of hydropower development in Nepal.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">FDI in the Hydropower</span></strong></div>
<div>
	As an investor, we feel that there is an absence of preferential and privilege policies to attract foreign investment in Nepali hydropower projects. There are no incentives in terms of taxes for foreign investors. The tax burden created from provisions of contract tax and value added tax (VAT) is putting pressure on the developers. The absence of proper insurance policies pertaining to hydropower has also been hindering foreign investment. Investments in projects are always at risk in case of natural disaster or big technical failures if there are no proper insurance policies in place.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;It is necessary to formulate investment-friendly policies to attract Foreign Direct Investment (FDI). Thus, policy makers should harmonise existing laws.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Problems for Investors</span></strong></div>
<div>
	Nepal has tremendous hydropower potential. But the country has yet to tap its potential due to several problems mostly linked to project licensing, technical issues as well as legal hurdles. I think the Nepal government should be ready to relax existing hassles on agreement and licensing to ensure timely service delivery. In Nepal, there is no procedure in accordance with international standards to issue Project Development Agreements (PDA), which slows the pace of project development and adversely affects the sentiment of developers. The initial survey licenses of various major projects are held by domestic/foreign developers for several years or even decades. Similarly, there are also issues regarding Power Purchase Agreements (PPA). The fluctuation in foreign exchange rate makes things difficult for power developers as they are more likely to face loss in selling the electricity they generate. These issues should be addressed first hand.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	There are several infrastructure-related constraints. Poor roads, lack of transmission lines, difficulties in conducting projects in remote areas and insufficient supply of construction materials and equipments are other problems in developing a project here. &nbsp;Likewise, awarding a single river basin to many contractors is also adding complications. Some social and political influences such as frequent protests and strikes against particular projects and inadequacy of local skilled staffs are other contributing factors.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Solutions to the Existing Hassles</span></strong></div>
<div>
	Effective policies are needed to solve all aforementioned problems. Developing common standards and procedures concerning hydropower investment will also have positive impact. A common standard and procedures should address issues regarding contract and licenses, company registration, bank account opening and control of foreign currency. Issues regarding the holding of initial license can be solved by cooperation with or transferring from the initial license holder. As far as PDA and PPA are concerned, the government should follow procedures in line with international standards.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	There is an exigency in preferential policy provision on hydropower investments. This includes duty exemption and tax reduction on raw materials, construction equipments, vehicles, and the income of power developers. Convenience on custom clearance and flexibility in work visa will also boost the morale of foreign investors. There are several issues regarding land acquisition by the projects. This issue could be solved by issuing instructive principles of land acquisition. Establishing a general administration on land acquisition and transfer capable of providing guiding land price in different regions and project areas will be the first right step. Secondly, simplifying the land acquisition and transfer procedure is also necessary.</div>
<div>
	&nbsp;</div>
<div>
	One-stop service of hydropower development can deliver effective solutions. For that, the government should set-up a stable and comprehensive agency responsible for hydropower administration in Nepal.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Water Resource Management&nbsp;</span></strong></div>
<div>
	Hydropower development is directly linked to water resource management. If properly managed, the water resource of a single project can be used for various purposes. For this, Nepal needs to identify pilot projects. Those projects should be fairly large enough in terms of power generation. This will help focus efforts in hydropower development. Apart from electricity generation, such projects may also provide water for irrigation and drinking.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Sinohydro&rsquo;s Plan&nbsp;</span></strong></div>
<div>
	Sinohydro Resources Limited is the overseas investment window of Power Construction Corporation of China (Power China). We have been in overseas investment business since 2004 with a registered capital of USD 400 million. We entered the Nepali market in 1995 and successfully accomplished six major hydropower, irrigation and infrastructure projects since then. The Ilam Hydroelectric Project, Modi Hydroelectric Project, Sikta Irrigation Project Phase 1, Sunsari-Morang Irrigation Project, and Bagmati Irrigation Project were handed over to the Nepal government after completion. Similarly, we upgraded the Tansen-Tamghas road project. Currently, Sinohydro is engaged in civil works of Kulekhani 3 and Upper Tamakoshi. Likewise, the 50MW Upper Marsyangdi &lsquo;A&rsquo; hydropower project is being developed with our investment.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Nepal should Take Advantages</span></strong></div>
<div>
	Nowadays, trading of surplus power is becoming a lucrative trade in the world. Nepal can earn substantial amount of money from such trading. I suggest the government and concerned authorities to formulate a master plan of power consumption. The plan should assess domestic requirements and power for export. Similarly, the establishment of a nationwide transmission network is also necessary for electricity export.&nbsp;</div>',
			'published' => true,
			'created' => '2013-09-02',
			'modified' => '0000-00-00',
			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'Yasing Zhang is the Senior Vice President of Sinohydro Resources Ltd, a Chinese multinational hydropower and infrastructure company. Zhang was in Kathmandu to attend the two-day Power Summit 2013. I',
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	(int) 4 => array(
		'Article' => array(
			'id' => '1688',
			'article_category_id' => '134',
			'title' => '‘Malaysia Tourism Aiming 36 Million  Tourist By The Year 2020’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:14px;"><img alt="Amran Abdul Rahman, director of Tourism Malaysia" src="/userfiles/images/mls.jpg" style="
float: left; margin: 0px 10px 0px 0px;width: 200px; height: 239px;" />The World Tourism Organisation has declared Malaysia as the 9th most visited country in the world for the last three consecutive years since 2009 and it has also achieved another feather on its hat by becoming the tenth friendliest country across the globe as declared Forbes Online. What makes Malaysia so especial and to share tourism promotional activities in Nepal, <strong>Amran Abdul Rahman</strong>, director of Tourism Malaysia in a rendezvous with The Corporate Weekly Associate Editor <strong>Sujit Nath</strong> revealed how Malaysia became the hot destination for the tourists from all over the world. <strong>Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>What is purpose your of visit in Nepal?</strong></div>
<div>
	This is for the first time I came to Nepal to get a first-hand experience of the market. Tourism Malaysia is doing market research in Nepal for the last 14 years and so far the response is good. &nbsp;I came here to welcome the people here to Malaysia under our promotional banner of &lsquo;Visit Malaysia Year 2014&rsquo;. A seminar was recently conducted on tourism on August 23 in association with the local tour operators. I look forward for a better relationship with Nepal in terms of tourism.</div>
<div>
	&nbsp;</div>
<div>
	<strong>How you rate Nepal as a market in terms of tourism?</strong></div>
<div>
	I think there is a great market in Nepal and its growing as compared to last year. An average Nepali tourist spends nearly 62,423.76 NPR, which is 2000 Malaysian Ringgit. Tourists from Nepal prefer to stay longer as compare to Indian tourists. So, the more they will stay &mdash; the more we will be able to generate the revenue. In Malaysia people more about Nepal than India because of its long association and common features in terms of lifestyle. But we are happy that response from Nepal and India is so far good.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What category of Nepali tourists prefers Malaysia as their favourite tourist destination?</strong></div>
<div>
	Most of the Nepali tourists come with their family but we have seen in recent years that a large number of youngsters are also exploring Malaysia. In last six months from January to June there was a growth of 33.7 per cent Nepali tourist in Malaysia. This was a significant growth and we are happy that the market is growing. We are confident to serve our best to the Nepali tourist with utmost homely care. It&rsquo;s our privilege to provide a comfortable stay in Malaysia.</div>
<div>
	&nbsp;</div>
<div>
	<strong>The banner &lsquo;Visit Malaysia Year 2014&rsquo; seems inviting with its marketing strategy. Could you please elaborate on that?</strong></div>
<div>
	Well I must say it will be the year of fun and frolic with endless new day-night mesmerising shows. What added more zeal, is the scheduled Grand Prix, which is going to be the show stopper. We are expecting a large number of tourists from across the globe to witness the carnival. For the shopping lovers, we are organizing a big event under the banner of Malaysia Mega Sale festival where the tourists will get all kind of branded lifestyle items in a cheaper price.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Malaysia tourism is doing a lot of promotional activities for Business and customized personal tourism. Could you share your views on the latest trend and response on Business tourism?</strong></div>
<div>
	It&rsquo;s a high end tourism segment and the Malaysia Convention and Exhibition Bureau (MyCEB) &mdash; meant to deal with the business tourism &mdash; has a done a commendable job. There is a rise in the business meetings of some of the big corporate houses in the world. The other areas, which include customized personal tourism packages, are weddings, honeymoon, cruise, luxury tourism etc. We are getting good revenue in these&nbsp;</div>
<div>
	segments too.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Tell me something about the overall all tourism scenario in Malaysia?</strong></div>
<div>
	In 2011, Malaysia recorded 24.7 million tourist arrivals with tourist receipts totaling RM 58.3 billion. In 2012, the country&rsquo;s tourist arrivals and receipts registered more than 25 million RM. The Malaysia Tourism Transportation Plan is targeting 36 million tourist arrivals and RM 168 billion in receipts by the year 2020. Kuala Lumpur was voted as the fourth best shopping city in the world and I am sure with other attractions which we have in Malaysia, we will be able to woo more tourists from Nepal and India.</div>',
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			'description' => 'The World Tourism Organisation has declared Malaysia as the 9th most visited country in the world for the last three consecutive years since 2009 and it has also achieved another feather on its hat by becoming the tenth friendliest country across the globe as declared Forbes Online.',
			'sortorder' => '1549',
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	(int) 5 => array(
		'Article' => array(
			'id' => '1638',
			'article_category_id' => '134',
			'title' => 'Necessities Of Commercial Bench',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<strong style="font-size: 14px;"><img alt="Shreekant Poudel,the spokesperson of the Supreme Court." src="/userfiles/images/BK.jpg" style="float: right; margin: 0px 0px 0px 10px; width: 175px; height: 224px;" />Shreekant Poudel</strong><span style="font-size: 14px;"> Is the spokesperson of the Supreme Court. In an interview with </span><strong style="font-size: 14px;">Britant Khanal</strong><span style="font-size: 14px;"> of The Corporate weekly he shed light on the introduction of commercial bench and its need.</span><strong style="font-size: 14px;"> Excerpts:</strong></div>
<div>
	&nbsp;</div>
<div>
	<strong>Could you highlight the reason behind establishing the commercial bench?</strong></div>
<div>
	The first and foremost reason behind the establishment of this bench is the need for speedy justice, easy access and quick legal remedies for the commercial sector. Even more important is the demand made by the law in many acts after the second Jana Andolan. It is clearly mentioned that such and such cases will be dealt by the commercial bench like for instance in Section Z8 of the Company Act. After 2006, the World Bank had also suggested the requirement of such a bench. The Company Act, the Secured Transaction Act and other acts related to safe competition have mentioned the requirement of this bench. Was this issue initiated by ADB? I don&rsquo;t think so but the ADB had some general interest and it had recommended on bringing such a bench too.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What new prospects will the bench bring? Will it have the same old practices disguised as new?</strong></div>
<div>
	In the process of establishing this bench we had to and we still are training judges, judicial staffs and even lawyers. The training lasts from one to one-and-a-half months as per requirement. The judges who attend the training are only sent to the bench for hearing commercial cases. The new commercial bench will therefore slowly shed some old ways.</div>
<div>
	&nbsp;</div>
<div>
	<strong>There seems to be a paradox in the bench being established for the benefit of the commercial sector while the jurisdiction seems a bit scattered, vague and ambiguous. Could you talk a little about this? &nbsp; &nbsp;</strong></div>
<div>
	We are still in the starting phase of establishing the bench. As per my knowledge, the initial requirement was that of a separate commercial court which came down to establishing a commercial bench in appellate courts. This was required because cases related to the commercial sector are heard in a scattered manner. For example, cases of contract are first heard by the district court, that of patents are heard by the department of industry, and many cases are addressed by the Nepal Rastriya Bank (NRB) too. Therefore, a common institution to streamline all commercial cases and bring them under one umbrella seemed to be necessary.</div>
<div>
	&nbsp;</div>
<div>
	Home work is yet to be completed. It was rightly questioned whether or not offences in banking will be dealt by the commercial bench. The issue is still subject to research and analysis. There are other issues also like that of intellectual property and cases of revenue tribunal. So there is a lot to be done and we are striving to bring all of these cases under the commercial bench.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Has the bench been established in all appellate courts in the country?</strong></div>
<div>
	No, we have not established commercial benches in all appellate courts as they are established in a need-based manner. The previous chief justice had recommended the bench to be established in six places including Pokhara but later it was only established in four places. We therefore have established this bench in five places, Hetauda being the youngest which was established two years back and the other four are Biratnagar, Hetauda, Butwal, Nepalgunj and Patan.</div>
<div>
	<img alt="Cases Regarding Commercial Bench" src="/userfiles/images/cbnch.jpg" style="width: 500px; height: 235px;" /></div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
			<tr>
				<td bgcolor="#FFFFFF">
					<div>
						&nbsp;</div>
					<table align="right" border="0" cellpadding="1" cellspacing="1">
						<tbody>
							<tr>
								<td>
									<img alt="Gandhi Pandit Advocate" src="/userfiles/images/GP.jpg" style="width: 200px; height: 250px;" /></td>
							</tr>
							<tr>
								<td style="text-align: center;">
									<div>
										<strong>Gandhi Pandit</strong></div>
									<div>
										Advocate</div>
								</td>
							</tr>
						</tbody>
					</table>
					<div>
						<h1 style="text-align: center;">
							&lsquo;We are still at the initial stage&rsquo;</h1>
						<div>
							<strong>What is your take on the commercial bench?</strong></div>
						<div>
							The judges must be competent to look at all kinds of cases, but frankly, that is not possible all the time because of growing trade issues in the domestic and global markets and because some of the cases are so sophisticated that they require specialised knowledge and high expertise is not available in the country. Smooth functioning of the economy will require a better legal system which will support rapid growth and development. Therefore, the present context demands a commercial bench to go in hand in hand with the pace of development in order to be able to forge a conducive environment for global as well as domestic investors.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							<strong>Where can we trace the footprints of this system?</strong></div>
						<div>
							This system can be traced to the continental legal system, commonly understood as the French and German legal system. In these systems, we can see the trends of a commercial tribunal, a labour tribunal, an industrial tribunal, among others. In these kinds of tribunals the specialised skills of various sectors are brought for the better understanding of the case. And this system was later followed by Britain and the United States of America. Therefore, this pragmatic approach has led to speedy justice and quick legal remedies in these nations. But in our context, we are still lagging behind. Our judges are still traditional and are only specialised in traditional issues such as cases of land dispute, writ petition, etc. whereas we don&rsquo;t have expertise on cases like letter of credit, IT law, intellectual property law, cases of trademark and so on.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							<strong>What could be the possible remedy to such lacunae and paralysis?</strong></div>
						<div>
							Establishing the bench is one thing and effectiveness is another. As judges are frequently transferred to places without access to such knowledge, they will require training, and attending the training once will not make an impact as there has to be periodic training which we are lacking. Therefore the national judicial academy has been training judges but in the same traditional cases only. Not enough training has been provided in the field of modern commercial issues. Another major problem is procedural delay. These kinds of hurdles will further delay justice and so they will have to be reduced to a minimum. Such deficiencies in the system will give a very wrong message to foreign investors.</div>
					</div>
					<div>
						&nbsp;</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<p>
	&nbsp;</p>',
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			'description' => 'The first and foremost reason behind the establishment of this bench is the need for speedy justice, easy access and quick legal remedies for the commercial sector.',
			'sortorder' => '1499',
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	(int) 6 => array(
		'Article' => array(
			'id' => '1592',
			'article_category_id' => '134',
			'title' => '‘CAAN Plans To Improve Eight Airports In Remote Areas’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<strong><img alt="Ratish Chandra Lal Suman,Director General of Civil Aviation Authority of Nepal (CAAN)." src="/userfiles/images/rcls.jpg" style="float: right; margin: 0px 0px 0px 10px;width: 200px; height: 219px;" />Ratish Chandra Lal Suman</strong> is the Director General of Civil Aviation Authority of Nepal (CAAN). In an interview with <strong>Raju Baskota</strong> of The Corporate, Suman shared the plans and parameters of CAAN and the International Civil Aviation Organization (ICAO). <strong>Excerpts:&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	<strong>What is the progress made thus far in regulating domestic and international air services and in division of work among service providers?</strong></div>
<div>
	We are in the last phase of regulating air services and the division of work. &nbsp;We are planning to finalize the process by 2015 and our consultants too have provided a report accordingly. CAAN rules need to be amended for the implementation of the report; we need government support for this and are working towards it.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Could you elaborate on the division of work?</strong></div>
<div>
	It is important to form different committees for operating an airport, providing services and deciding its rules and regulations. This is an international practice and was discussed since the establishment of CAAN. But air services were very few then although now it is gradually increasing. A systematic process is needed for work division, which is taking time.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Will differentiating work and regulation services mitigate safety risks?</strong></div>
<div>
	Yes, risk will be mitigated with these measures. Division of work will bring simplicity in work and work load will automatically grow lighter. This in turn will help in risk reduction. We also are expecting to reduce the safety challenges by regulating air services differently on the basis of domestic and international air services.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What have been CAAN&rsquo;s recent achievements?</strong></div>
<div>
	We prioritized improving the standard of our airports by adding new technologies and increasing safety. The Air Traffic Controller (ATC) automation system has begun due to this and new radar will be placed by 2015 too. We are also working on minimizing safety challenges and on improving the management system.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Does CAAN itself devise the budget for the improvement of airports?</strong></div>
<div>
	Government&rsquo;s grants and the total amount of shares invested are kept in the same basket by CAAN. The aviation authority is allowed to allocate its annual revenue and the government&rsquo;s grants to areas as required. With such allocations, we have completed construction of seven airports within the past three years. CAAN is also allocating funds to improve other airports. This fiscal year, CAAN is planning to improve eight airports in remote areas.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What is being done to operate Nepali airline services according to the standards and rules of the International Civil Aviation Organization (ICAO)?</strong></div>
<div>
	CAAN is taking gradual steps for this. Nepal is also working to have safety audits considering ICAO standards. Similarly, we are planning to set parameters for both domestic and international flights, to systemize work process and policies, focusing on the safety of air services. CAAN will request to repair the aircraft&rsquo;s system for landing and take-off and if it is not complete, we will take action accordingly.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>CAAN has added parameters for Air Operator Certificate Requirements (AOCR). Airline companies are calling it impractical. What is your take on the matter?</strong></div>
<div>
	How is it impractical? Airline companies are not behaving as per the requirement of airline services and now they are calling the new AOCR impractical. A company that can bring an airline worth Rs 500 million can obviously pay the required amount for its certification. For the smooth operation of aircraft, we have set a deposit of Rs 2.5 million for helicopters, Rs 5 million for domestic flights and Rs 500 million for international flights. This parameter must be followed.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What is the progress on CAAN&rsquo;s decision to buy an aircraft?</strong></div>
<div>
	CAAN is a regulatory body and is supposed to develop rules and regulations, conduct frequent analyses and training. An aircraft was needed for aviation training. The Authority possessed one aircraft 10 years ago which crashed and has not been replaced since. The Authority has thus allocated Rs 570 million to buy a Twin Otter aircraft. In case this amount is insufficient, some more funds will be provided. We are planning to open a tender to bring a Twin Otter aircraft by September 2015.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>There are rumours that CAAN is buying an aircraft to only serve politicians. What do you say?</strong></div>
<div>
	&nbsp;We have considered the matter of buying an aircraft very seriously. We will form specific parameters to operate it by providing 10 per cent of the maintenance cost for regular services of aircrafts and 90 per cent for business purposes. The maintenance and insurance costs, and additional parts of the aircraft are all included in the fund allocated for its purchase.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Why is the Authority weak in keeping a clear statement of income and expenditure of airports?</strong></div>
<div>
	We are analysing the income-expenditure figures of all airports currently. If we analyse the investment and operation costs of all airports, we can see that every airport including Tribhuvan International Airport (TIA) is making a loss. As for the annual operation of flights, only seven airports in trunk routes, that have maximum passenger flows are in profit.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>CAAN has a budget of Rs 11 million for this fiscal year. Is the construction of new airports included in it?</strong></div>
<div>
	Of the total budget, Rs 7 million has come from government grants and share capital and Rs 4 million has come from the Authority&rsquo;s internal source. The total expenditure of the Authority will mainly go to the construction and capacity enhancement of airports, keeping the government&rsquo;s suggestions in consideration.</div>
<div>
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-08-12',
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			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'Ratish Chandra Lal Suman, the Director General of Civil Aviation Authority of Nepal (CAAN) shared the plans and parameters of CAAN and the International Civil Aviation Organization (ICAO).',
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	(int) 7 => array(
		'Article' => array(
			'id' => '1545',
			'article_category_id' => '134',
			'title' => '‘This Budget Supports  A Liberal Economy’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size: 12px;"><strong><img alt="Dr Chiranjibi Nepal,Chief Economic Advisor at the Ministry of Finance." src="/userfiles/images/Dr%20Chiranjibi%20Nepal.jpg" style="float: right; margin: 0px 0px 0px 10px;width: 150px; height: 188px;" />Dr Chiranjibi Nepal </strong>is Chief Economic Advisor at the Ministry of Finance. In an interview with Sweta Sharma of The Corporate weekly, he shed light on the nature of the budget for FY 2013-2014. <strong>Excerpts:&nbsp;</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>To what extent do you think the current budget will boost the economy of Nepal?&nbsp;</strong></div>
<div>
	The country&rsquo;s economy has suffered badly whenever the budget was presented late. After six long years, the government came up with a full-fledged and timely budget concentrating on core areas such as energy, agriculture, infrastructure, education and health. I believe that the timely announcement of the budget is a very positive sign for development and can boost the economy largely. The government has also aimed for a growth rate of 5.5 per cent which is certainly going to be achieved with the budget of the current fiscal year.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Given that the growth rate recorded for the past 10 years has been 3.7 per cent in average, how realistic is this year&rsquo;s target of 5.5 per cent?&nbsp;</strong></div>
<div>
	Late budgets in the past have affected capital expenditure to a large extent. The current budget has taken initiatives which could stimulate the flow of capital expenditure and improve economic activities. The current budget has also addressed important social and economic issues and is advocating for a stronger role of the private sector to spur the economy. In this regard, we can say that, with proper implementation of the budget, 5.5 per cent growth target is achievable.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What major policy changes did the government miss to address in this year&rsquo;s budget and why?&nbsp;</strong></div>
<div>
	I don&rsquo;t think the budget has missed addressing any important issue. The budget as a whole is inclusive as it has considered every sector - social, economic, infrastructure and business. This budget supports a liberal economy. It also encourages the private sector to take the lead. Considering these things, there are not many changes that have to be made for now.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>This budget has brought a number of populist programmes to serve certain political parties. What is your comment on this?&nbsp;</strong></div>
<div>
	I disagree with the statement that the government has brought populist programmes. It has brought programmes that are for everyone. Unlike previous years, the current budget has been least criticised. At the macro level, the budget has brought a long term programmes which is a must to boost the economy. Similarly, the budget focuses more on the private sector. Therefore, the budget is not controversial.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>In hydropower, the budget allocation for transmission lines is largely from donors. The government did not set aside anything for land acquisition. Why this lapse?&nbsp;</strong></div>
<div>
	Yes, to some extent there have been lapses but it is being corrected. The budget allocation for land acquisition is still being processed and the government is contributing to this purpose. The budget has emphasised energy sector with belief in its importance to uplift the economy. The government is concerned about the land acquisition issue and is on the move to provide maximum support. The government plans to eliminate the chronic problem of power outage within the next three years.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Private sector hydropower developers have expressed dissatisfaction since the budget has not provided incentive for private power producers. What are your comments on this?&nbsp;</strong></div>
<div>
	We have to understand that the environment being created for hydropower is itself an incentive. The budget has allocated a huge sum for the energy sector which is also a form of incentive. This has initiated an environment for investment in energy which can later bring profit to the private sector. But merely arranging a budget cannot bring about desired results if not backed by effective implementation. Thus, the government is committed towards effective implementation of programmes that have been put forward.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>The budget has Rs 300 million allocated for export incentives which the private sector says is peanuts. What do you think?&nbsp;</strong></div>
<div>
	Export depends on competition with other countries. To present Nepal as a competitor, the amount allocated for exports is sufficient and very convenient in our context. The private sector has expressed satisfaction in the budget stating that it has attempted to address most of the concerns raised by the business community.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>While the budget speech mentions a deficit of Rs 87.7 billion, budget documents prepared by the Ministry of Finance caps deficit at Rs 40.5 billion. Why such a huge discrepancy?&nbsp;</strong></div>
<div>
	There has been a misunderstanding about the budget deficit. The exact figure for deficit is Rs 87.7 billion. To balance it, the new budget attempted to incorporate limited number of new programmes that are necessary to encourage exports, generate energy and boost the morale of the private sector. In order to improve Nepal&rsquo;s export performance, various issues on the domestic and international fronts have to be addressed.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>A lot of money is allocated clandestinely for financing the losses of public enterprises (PEs). Why can&#39;t the government allocate funds openly for PEs?&nbsp;</strong></div>
<div>
	Public enterprises are incurring losses. To overcome this problem, we are trying to search for partners in Nepal Telecom and Agricultural Development Bank. For other public enterprises, we are preparing to change their structure and to take them towards privatisation. There is a policy to carry out such activities. We are also closing down some enterprises which cannot earn profit and cannot sustain for long.</div>
<div>
	&nbsp;</div>',
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			'description' => 'Dr Chiranjibi Nepal,Chief Economic Advisor at the Ministry of Finance shed light on the nature of the budget for FY 2013-2014.',
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		'Article' => array(
			'id' => '1502',
			'article_category_id' => '134',
			'title' => '‘We Are Receptive To Private Sector’s Suggestions For PDA’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The Ministry of Energy (MoE) is in the process of finalising the Project Development Agreement (PDA) for power projects. The Corporate weekly&rsquo;s <strong>Janardan Baral</strong> and <strong>Bishnu Belbase</strong> spoke to <strong>Bishwa Prakash Pandit</strong>, Secretary at the MoE about the issues of draft PDA, Power Purchase Price and power transmission lines. <strong>Excerpts:</strong></div>
<div>
	&nbsp;</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
	<tbody>
		<tr>
			<td>
				<img alt="Bishwa Prakash Pandit, Secretary, Ministry of Energy" src="/userfiles/images/Bishwa%20Prakash%20Pandit.jpg" style="width: 175px; height: 181px;" /></td>
		</tr>
		<tr>
			<td style="text-align: center;">
				<div>
					<strong>Bishwa Prakash Pandit</strong></div>
				<div>
					Secretary</div>
				<div>
					Ministry of Energy</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	<strong>The Ministry of Energy (MoE) is about to finalise the template for Power Development Agreement (PDA). What are the major provisions?&nbsp;</strong></div>
<div>
	The Electricity Act of 2049 still exists and foreign and local investors develop the projects remaining within the parameters set in that Act. The PDA is being practiced in recent years throughout the world to increase the security of investment. Private sector entrepreneurs in Nepal too want PDA system. Frequent changes in policies and tax rates have increased the cost in hydro power development and there are risks posed by natural settings as well. The PDA template will include the issue of how such risks are to be shared. We have included this under &lsquo;force majeure&rsquo;. Similarly, the issue of quality and security are also addressed in the PDA template. As the project is eventually to be transferred to the government, the quality issue is important. The social responsibility of the developer is also necessary to be included. The process of handing over the project to the government and disputes settlement mechanisms are also being included.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>To what extent are the private sector&rsquo;s suggestions going to be included in the PDA template?&nbsp;</strong></div>
<div>
	The private sector&rsquo;s suggestions are largely included in the template. The PDA will balance the profit interest of the private sector with the national interests.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>It is said that the PDA drafted by the MoE is not bankable. Why did not the MoE take care about making the PDA bankable?&nbsp;</strong></div>
<div>
	We do understand that the PDA should be bankable. In case the current template is not bankable then we want suggestions from the private sector to make it so. We are preparing the PDA template to make it private sector friendly and have been receptive to the private sector&rsquo;s suggestions.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Most of the power projects developed by the government suffer time and cost overrun. Why?&nbsp;</strong></div>
<div>
	Nepal is still in the process of drafting the constitution. Political instability has continued in Nepal for quite long. And is the main cause of time overrun in projects. Similarly, frequent change in government brings change in the leadership of the power projects programmes. Also the practice of starting a project without enough funds arranged is to blame for this. Similarly, there is the challenge of getting the support from local communities.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Independent Power Producers&rsquo; Association of Nepal (IPPAN) has urged for change in the Power Purchase rates. How is it possible to consider their demand when the only buyer Nepal Electricity Authority (NEA) is in perpetual loss?&nbsp;</strong></div>
<div>
	It is said that the reason behind NEA&rsquo;s loss is the low electricity tariff. The government has a policy to revise the tariff as required by the time. NEA has thus formed a committee to prepare a model power purchase agreement so as to accommodate the view that the power price should be based on generation cost. The committee is considering also the view that a certain Internal Rate of Return should be assured to the developers.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Why is the delay in inking PPA with the &lsquo;super-six&rsquo; hydropower projects?&nbsp;</strong></div>
<div>
	The government has entrusted the super-six hydropower projects to private power producers selected through a bidding process. But the government is not able to fulfill its commitment regarding these projects. However, the MoE is determined to fulfill those commitments. The problem of these projects is lack of transmission lines. Current FY budget has allocated funds for development of these transmission lines. But this budget allocation alone is not enough to hope that there will be transmission lines. I believe that there has been a great mistake of granting license for the super-six projects before the development of transmission lines. We collected money from the private sector but could not prepare the transmission lines on time. Therefore, the private sector is suffering a lot in this regard. Thus, I commit to create situation for these super-six projects to start construction as soon as possible.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Private sector power producers have been asking for PPA in US dollars and NEA is refusing it. This discourages foreign investment. Is it possible to develop hydropower only from domestic investment?&nbsp;</strong></div>
<div>
	PPA in US dollar will not make any difference if the generated electricity is exported. Nepal&rsquo;s currency is not strong enough and costs have increased by signing PPA for Khimti and Bhote Koshi projects in US dollars. This experience is the reason why NEA is hesitating from PPA in US dollars. The MoE, however, has formed a committee to work for agreements in US dollars.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>FY 2013\14 budget has allocated Rs 13 billion for the hydropower and energy sector, focusing on development of transmission lines. Will the transmission line problem be solved now?&nbsp;</strong></div>
<div>
	It is necessary to have a sufficient budget for transmission lines. Foreign grants are included in the budget for the development of transmission lines. But for land acquisition, which is one of the major problems for the transmission lines, the government itself should allocate a budget from its own resources. This is lacking in the budget. We are currently in dialogue with the Ministry of Finance to solve this problem.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>The budget did not address the demand of the private developers for a waiver of VAT on construction materials used by power projects and other demands of the private sector. Why is this so?&nbsp;</strong></div>
<div>
	We are in the discussion about such demands from the private sector. A conclusion is yet to be arrived at on this. So it was not included in the budget. We are, however, determined to encourage the private investors.&nbsp;</div>
<div>
	&nbsp;</div>',
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			'description' => 'The Ministry of Energy (MoE) is in the process of finalising the Project Development Agreement (PDA) for power projects.',
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	(int) 9 => array(
		'Article' => array(
			'id' => '1405',
			'article_category_id' => '134',
			'title' => '‘We Are Soft Now, Shall Be Strict Soon’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:14px;">Jiwan Prava Lama is the Director General of Department of Food Technology and Quality Control (DFTQC). In an interview with The Corporate&rsquo;s Suraksha Adhikari, she talked about the present controversy about dairy products in Nepal and highlighted the plans of DFTQC for improving quality of foods in Nepali market. <strong>Excerpts:&nbsp;</strong></span></div>
<div>
	&nbsp;</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
	<tbody>
		<tr>
			<td>
				<img alt="Jiwan Prava Lama,Director General of Department of Food Technology and Quality Control (DFTQC)" src="/userfiles/images/lama.jpg" style="width: 250px; height: 309px;" /></td>
		</tr>
		<tr>
			<td style="text-align: center;">
				<div>
					<strong>Jiwan Prava Lama</strong>,</div>
				<div>
					Director General</div>
				<div>
					Department of Food Technology and Quality Control</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	<strong>Your department has reported that sub-standard and non-edible foods are freely traded in the market. Does it imply a failure of regulators?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	There are 181 standards for food. Within those standards there are 10 categories with various parameters. If the manufactured food doesn&rsquo;t meet a single parameter, we consider it as a non-parameter. We do report such cases but food products that do not meet every parameter cannot be considered adulterated. Some of them are non-conformant, sub-standardized, and some are adulterated. All of these foods are not non-edible. Some of them can be eaten after applying some safety measures.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	We do not consider it as a failure of regulators as it comes under the food safety chain. The quality of food has to be ensured right from its production to the time it reaches the dining table. The food should be checked during production, packaging and even during consumption as even the wrong way of consumption can decrease its quality.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Your department&rsquo;s report on milk products in Kathmandu has caused a drastic reduction in consumption of processed milk, threatening both the dairy industry and dairy farming. What is your comment?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Our department monitored 14 dairy industries and collected 17 samples of milk. Among them, none had met all the parameters. A minimum of two percent of coliform was found in the milk, which does not meet our standard. In such a situation, certain actions are necessary to minimize such irregularities. We are taking action upon these dairies because of which consumption might have decreased. The government too has formed the National Dairy Development Board in order to reduce the adulteration of milk, thereby increasing its quality.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>You are also the head of Nepal Food Scientists and Technologists Association (NEFOSTA). What can your association do for resolving these issues?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	NEFOSTA can play the role of an agent between the government and the industries and fill the gap of technical manpower in companies. There is a lack of skilled manpower in the dairy business because of which these problems are emerging. Our association can help the government by providing technical manpower to ensure quality food.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>It is alleged that your department&rsquo;s campaign against contaminated milk is discriminatory as it punished Nepali dairies while imported milk was not checked. What is your comment?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Our department verifies the quality of milk within certain standards, norms and policies of the department. There are processes that we have to go through when we are performing each and every task. We are checking the quality of milk only on the basis of coliform now and penalizing those dairies where 0-1000 units of coliforms are found in the milk produced by them. Until now, we have been focusing on some soft punishments but we are moving towards some strict action soon.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Your department is criticized also because it has come down harshly on registered dairies and neglected the unregistered ones, discouraging people from registering their dairies and coming under government tax net. What do you have to say?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	It is the duty of local bodies of the concerned area to look after the registration of industries. Our task is to monitor the registered ones. If the local bodies perform their tasks properly, we could perform our work more effectively. But in our country, concerned sectors are not aware of the responsibilities provided by the law. Though the non-registered dairies don&rsquo;t come under our scope of work, we are planning to investigate even them. We have not been able to go ahead for examining the quality of local dairies due to lack of skilled manpower, but we will be involving ourselves with them gradually.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Five dairies are sealed by the government for contamination. What is your take on this?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	We have sealed those dairies for the sake of improving the quality of milk. During the survey of dairies, those which failed to meet certain standards were sealed. But we are liberal on this issue as we can give permission to re-open the sealed diaries if they improve their standards. This action is a warning to the dairies to focus on quality production of milk. Kharipati Dairy was also sealed but when it improved its quality, we permitted its operation to resume.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What further plans does the department have to increase the quality of food?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Presently, we are focusing on quality assurance of milk. There is still so much to be done in the issue of water contamination. After this, we are going into water purification. Sample collection is being done for the inspection of water.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Further, we will be focusing on other domestic products and import-export products. Only goods that meet the legal provisions of Nepal and familiar to consumers here should be imported. We have also discussed with the government to work on the classification of the industries and in maintaining the standard of the Nepali market by developing good management practice in the market to assure Nepali people of quality goods.</div>
<div>
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-07-15',
			'modified' => '2013-07-15',
			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'Jiwan Prava Lama is the Director General of Department of Food Technology and Quality Control (DFTQC). In an interview with The Corporate’s Suraksha Adhikari, she talked about the present controversy about dairy products in Nepal and highlighted the plans of DFTQC for improving quality of foods in Nepali market',
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	(int) 10 => array(
		'Article' => array(
			'id' => '1328',
			'article_category_id' => '134',
			'title' => '‘No To Another Merger Right Now’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<table align="right" border="0" cellpadding="1" cellspacing="1">
	<tbody>
		<tr>
			<td>
				<img alt="Tulasi R. Gautam,CEO,MachhapuchchhreBank Limited" height="209" src="https://lh4.googleusercontent.com/-M_eOSiFZvNc/UdqK3UNMT2I/AAAAAAAAA8o/wwW6sZVBcN0/s512/Tulasiu.jpg" width="200" /></td>
		</tr>
		<tr>
			<td style="text-align: center;">
				<b>Tulasi R. Gautam<br />
				</b>CEO<br />
				Machhapuchchhre Bank Limited</td>
		</tr>
	</tbody>
</table>
<p>
	<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
	<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped?&nbsp;</strong></p>
<p>
	It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
	<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank?&nbsp;</strong></p>
<p>
	NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger.&nbsp;</p>
<p>
	<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason?&nbsp;</strong></p>
<p>
	It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank.&nbsp;</p>
<p>
	<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it?&nbsp;</strong></p>
<p>
	Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
	<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming?&nbsp;</strong></p>
<p>
	There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned.&nbsp;</p>
<p>
	<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion?&nbsp;</strong></p>
<p>
	It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
	<strong>After the merger there is generally chaos among the staffs. How did you manage it?&nbsp;</strong></p>
<p>
	When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
	<strong>How do you evaluate the present situation of commercial banks?&nbsp;</strong></p>
<p>
	Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good.&nbsp;</p>
<p>
	<strong>What are the existing problems in the banking sector?&nbsp;</strong></p>
<p>
	The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
	<strong>It is said that banking sector suffers lack of skilled manpower. Is it true?&nbsp;</strong></p>
<p>
	It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well.&nbsp;</p>
<p>
	<strong>These days the operational risks are getting high in banking sector. How do you consider this?&nbsp;</strong></p>
<p>
	It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk.&nbsp;</p>
<p>
	<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this?&nbsp;</strong></p>
<p>
	It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
	<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties?&nbsp;</strong></p>
<p>
	Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
<div>
	 </div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
</table>
<p>
	 </p>',
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			'description' => 'Tulasi R. Gautam, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal.',
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	(int) 11 => array(
		'Article' => array(
			'id' => '1169',
			'article_category_id' => '134',
			'title' => 'Ajay Shrestha',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size: 20px;"><strong>‘We are securing our banking further, and bringing more people into the system’</strong></span></p>
<p>
	<img align="left" alt="" height="211" src="https://lh3.googleusercontent.com/DAJx8o_ZsL9-ZJvyFsvqbAJYWU3U37zniTin6BXFds8=w147-h207-p-no" width="150" /></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>Ajay Shrestha CEO, ank of Kathmandu (BOK)</strong></p>
<p>
	<strong>Ajay Shrestha is the CEO of Bank of Kathmandu (BOK). In an interview with Sweta Sharma of The Corporate, Shrestha talked about challenges in the banking sector. Excerpts: <br />
	</strong></p>
<p>
	<strong>How have you evaluated BOK’s performance during the last two years? </strong><br />
	The bank’s financials have been stable for the last three years. The bank is also in a reasonable state in terms of profitability.&nbsp;</p>
<p>
	<strong>What are the challenges facing the bank and the entire sector in general? </strong><br />
	As the core market for the banking sector is still not developed in the country, there is a cut-throat competition among banking and financial institutions to get the maximum share of this limited pie. The cost level has also increased with increasing competition. Thus, it is very challenging for a bank to survive in such a competitive market.&nbsp;</p>
<p>
	<strong>The central bank has recently introduced changes to the account opening procedures. What is your take on the changes? </strong><br />
	NRB has recently directed banks to implement a new system, called Know Your Costumer, to keep better records of clients. We welcome the new system. But it definitely has made it difficult for banks to run smoothly.</p>
<p>
	NRB has come up with this new procedure at a time when majority of people still do not have access to banking. But now the procedure has been implemented to some extent. In my view, there are still large numbers of people who need to be encouraged to comply with the new system.</p>
<p>
	<strong>The central bank has said plans to increase the minimum paid up capital requirement for commercial banks to Rs 500 million. What is your bank’s strategy? </strong><br />
	The central bank is yet to decide on the issue. If NRB does increase the paid up capital requirement to Rs 500 million, we will comply with the directive. Earlier, we were successful in meeting the paid up capital requirement of Rs 200 million using our own sources.</p>
<p>
	<strong>The operational risks in banks have been reported to be quite high. How are you coping with that?</strong> <br />
	Operational risks are inherent in the banking sector all over the world. As more and more customers start using banking services, banks have no option but to switch to advanced banking procedures. The risks need to be addressed and minimised. We are complying with all prevailing laws to deal with operational risks. We are continuously reviewing our banking processes to make them more secure.</p>
<p>
	<strong>BOK launched a special scheme to invest in SMEs (small and medium enterprises) and clean energy. How has the experience been so far? </strong><br />
	SMEs are relatively new to Nepali banks. There are is no fixed definition of a small enterprise. It has been around four months since our bank started its SMEs scheme. The process of SME financing is not easy. A lot of research needs to be done before issuing loans.</p>
<p>
	In this regard, we are running financial literacy programmes for prospective SMEs, especially outside the valley. As part of the programme, we are working on building the knowledge base among people to help them understand the banking system. This has helped encourage people to some extent. <br />
	Clean energy is basically associated with environment. We are taking SME and clean energy schemes together.</p>
<p>
	<strong>While most banks have already adopted branchless banking, BOK is still to do so. Why is the bank so slow in adopting new technology? </strong><br />
	Switching to branchless banking requires equipment and investment. We do not rush to adopt new technology as we are very conscious about the outcome a change may bring in. At the same time, we are also into increasing our customer base. Our main mission is to bring more people into the banking system. We are mainly focused on sustaining our bank as a whole.</p>
<p>
	We are planning to provide branchless banking service at 11 locations for now. At the end of the fiscal year, we will be running branchless banking from 25-30 locations. Similarly, we will launch mobile banking soon.</p>
<p>
	<strong>Would you like to say something to your customers? </strong><br />
	We have increased our customer base to 2.5 lakh from 90,000 within three years of time. This is very encouraging for our bank. We want to double the number of customers in the next few years. Our greatest achievement is that we have 50 outlets. We also have 57 ATM counters. We have been successful in meeting our targets till now.<br />
	<br />
	 </p>',
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			'description' => 'new business age  interview news & articles, interview news & articles from new business age nepal, interview headlines from nepal,  current and latest interview news from nepal, economic news from nepal, nepali interview economic news and events,  ongoing  interview news of nepal',
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		'Article' => array(
			'id' => '1140',
			'article_category_id' => '134',
			'title' => 'Swagat Shrestha',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>‘Need fusing science and technology with business’<br />
	</strong><br />
	Swagat Shrestha is the Chairperson of Higher Secondary School’s Association of Nepal’s Kathmandu Chapter (HISSAN KTM). Sweta Sharma of The Corporate Weekly talked with Shrestha about overall education system of Nepal, its reforms, problems and challenges. Excerpts: <br />
	<br />
	<br />
	<strong>How do you evaluate the present education system of Nepal? <br />
	</strong><br />
	Education system of Nepal has improved in a satisfactory way. There have been improvements in courses and vocational and business education are introduced in government schools and colleges. <br />
	<br />
	<br />
	<strong>Comparing with the last year, SLC pass percentage is quite low this year. What do you think might be the reason behind it? <br />
	</strong><br />
	The government has allocated 17 per cent of budget for education. Looking at this, the SLC pass percentage is quite discouraging. This is an issue to be considered seriously. In cities like Kathmandu, we do have 80-90 pass percentages. But the government schools mainly those of out of valley have only 10- 12 pass percentage. Earlier, many schools openly helped students cheat in SLC exams. This year, the examination was very strict, and the papers were also evaluated strictly which might have caused this decline. <br />
	<br />
	<br />
	<strong>One of Nepal’s Millennium Development Goals is to have 100 per cent enrollment in primary school. To what extent do you think it would be possible? <br />
	</strong><br />
	These days, people are quite aware of the importance of education and literacy. Especially in villages, more and more people are being aware about education and we must thank political parties for this as they keep visiting villages for various awareness programmes. This has led to expect some good changes in education sector and I do think there is the possibility of educating a huge portion of the population. <br />
	<br />
	<br />
	<strong>What major reforms do you think are necessary for Nepal’s education system? <br />
	</strong><br />
	The education system of Nepal is city-oriented as must of educational institutions are located in the major cities. Private sector is basically surviving on its own and they have the inclination towards staying where they see good business possibility. It is government’s responsibility to provide education free of cost but instead there is impractical policy that requires educational institutions to pay VAT like tax to the government. <br />
	<br />
	But above all, the major problem of Nepal is political instability and it has affected almost every sector. Every sector is politicized and education sector is also affected largely. Also, we are copying the foreign curriculum and that cannot always be relevant for us. The education system should rather be based on our country’s need and demand. People need to set an example by contributing in Nepal so that the future generations too could be encouraged to stay in Nepal. And if the government educational institutions could provide better education, then the private ones can gradually phase out. <br />
	<br />
	<br />
	<strong>Government has failed in creating satisfactory long term education policies. What are your comments on this? <br />
	</strong><br />
	This is all due to unstable government. The frequent change in government is affecting policies to sustain in the long term. Reforms, policies, rules and regulations get changed with the change of government. Even though the policies are good, it definitely will be changed with new government, and it is so frequent. Still we can hope for positive changes in educational sector as there are possibilities. <br />
	<br />
	<br />
	<strong>What is your suggestion to keep education sector free from political intervention? <br />
	</strong><br />
	The unhealthy competition among major political parties has brought this problem of intervention in every sector request all the major political parties to leave at least the schools free from politics. The political parties should point out the weakness of private educational institutions and we are ready to do our best to overcome those weaknesses. This will help to run the education sector more peacefully. <br />
	<br />
	<br />
	<strong>Students seem to be more attracted towards A-level courses in the recent days. Why is +2 education gradually losing the attraction? <br />
	</strong><br />
	I disagree to this because more number of students are still attracted to +2 colleges. A-level course is of international standard and is also quite expensive. I think A-level degree is not suitable for Nepal. The majority of the students are in +2 colleges rathen than in A-level colleges. Yes, I do agree that the courses are quite advanced in A-level, but it also has its own problems. <br />
	<br />
	<br />
	<strong>It is quite confusing to choose good educational institutions. What do you suggest to the students and guardians? <br />
	</strong><br />
	Distance matters a lot, so it is better to choose those institutions which are quite near to your residence as it would consume less time. There should be enough information about the people who are running the institutions. Educationists can run the institutions well and they will be more inclined towards providing better education. Results of past few years should also be taken into consideration. In addition, the institutions should possess basic infrastructure and facilities where students could find an environment to boost their abilities. If these parameters are considered, it will be relatively easier to select a good school or college. <br />
	<br />
	<br />
	<strong>What unique characteristics do you think your institution Kathmandu Valley College (KVC) possesses when compared to the other colleges? <br />
	</strong><br />
	We have daily evaluation system where every student is supposed to appear in test at the end of the day. In this regard, I can say that our evaluation system is unique. We organize seminars and presentations every Friday to boost the students’ communication and presentation skills. We are also focused on promoting our culture. We also provide ‘Joyful Parenting Training’ where parents and students can interact with each other properly to understand each other’s point of view. We also provide job placement trainings to the students. Broadly speaking, we provide our students with reality based education. <br />
	<br />
	<br />
	<strong>What new programs are you going to introduce in near future which you think will be beneficial to boost the education system of Nepal? </strong><br />
	<br />
	We are going to provide professional computer training to students and we will also certify it. In coming year, we are adding BBA and MBA level according to the demand of students and the market. But our college is more focused on science and technology which is very important for Nepal’s development. We need fusing science and technology with business. This will help to increase the value of products and it ultimately will help to boost Nepal’s economy as well. It also will make our education system more advanced.<br />
	 </p>',
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			'keywords' => 'Swagat Shrestha is the Chairperson of Higher Secondary School’s Association of Nepal’s Kathmandu Chapter (HISSAN KTM). Sweta Sharma of The Corporate Weekly talked with Shrestha about overall education system of Nepal, its reforms, problems and challenges. Excerpts:',
			'description' => 'Swagat Shrestha is the Chairperson of Higher Secondary School’s Association of Nepal’s Kathmandu Chapter (HISSAN KTM). Sweta Sharma of The Corporate Weekly talked with Shrestha about overall education system of Nepal, its reforms, problems and challenges. Excerpts:',
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			'id' => '1874',
			'article_category_id' => '134',
			'title' => '‘Flagship Carrier Should Be Revived For Tourism Growth’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:16px;"><img alt="Sagar Pandey" src="/userfiles/images/inter.jpg" style="float: right; margin: 0px 0px 0px 10px;width: 200px; height: 186px;" />The thought that the private sector should now take the lead in boosting the tourism industry is gaining momentum. That one in four visitors to Nepal go trekking should say something about the popularity of this activity in the country. Around 1000 trekking agencies are affiliated with the Trekking Agencies&rsquo; Association of Nepal (TAAN).&nbsp;Sagar Pandey, Executive Chairman of the Himalayan Glacier Trekking, was elected as the General Secretary of TAAN at the recently held general convention of the association. &nbsp;The Corporate&rsquo;s &nbsp;Sagar Ghimire, spoke to Pandey this week about the challenges and problems of trekking agencies and their role in private sector-led tourism development. <strong>Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Can it be inferred from the political leverage seen during the general convention of TAAN that the association is under the control of political parties rather than trekking agencies?</strong></span></div>
<div>
	Though I cannot rule out the inclination of an individual towards a certain political party, TAAN is a purely professional association representing professional trekking agencies. We do not hold any political baggage so we are a non-political entity.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">What are the challenges and problems in running trekking agencies?&nbsp;</span></strong></div>
<div>
	Tax/VAT for this service sector, illegal trekking operations threatening our cottage industries and penetration of international investment in this business, among others, are short term challenges we are dealing with. Long term problems include the collapse of trekking routes due to the expansion of roads, development of tourism infrastructure, developing new trekking trails, promoting tourism and policy reforms.</div>
<div>
	&nbsp;</div>
<div>
	Also, since this is a service sector, 13 per cent VAT/tax is too high for us to afford. It is not judicious to charge the service sector VAT as much as the manufacturing sector is charged. All entrepreneurs should be brought under the VAT, and the government should lower it to 4/5 per cent as is the international practice.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Are trekking agencies dissatisfied with the government&rsquo;s attitude for tourism development?</strong></span></div>
<div>
	The recently commemorated international tourism &nbsp;day was just an opportunity for the government to repeat its rhetoric on the importance of tourism for the country&rsquo;s economic growth. Unfortunately, no effective plans toward such sector were presented. There is no research on how tourists make their plans, what the international trends are in tourism, why tourists come to Nepal, and what should be our strategies. Even after one and a half years of the completion of Nepal Tourism Year (NTY), the report of the event is yet to be prepared. How do you review the performance of stakeholders with this laid back approach?</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What are the marketing and promotional plans of TAAN to brand Nepal as the world&rsquo;s best trekking destination in the international market?</strong></span></div>
<div>
	Apart from participating in world exhibitions and trade fairs and using international media, we think reviving our flagship national carrier Nepal Airlines Corporation which connects Nepal to the world can double the number of tourists. Provided that our national carriers has flights to multiple countries, the arrival of tourists can increase significantly. We will pressure the government for this.</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>It is said that the price undercutting by trekking agencies is responsible for the decline of tourists&rsquo; spending despite a rise in their numbers. What will TAAN do to curb such practices?</strong></span></div>
<div>
	With the lack of correct data, we make evaluations through hypotheses or the record of the World Bank or other multilateral agencies. The concerned agency should come up with a proper data keeping system which will help us address this problem. Undercutting of price also results from a competitive market. Gone are the days when tourists used to come without information of the price. We cannot fix the price of any package in a free market. However, we can only create awareness about ethical practices through various forums. We cannot stop them even if they run their agencies on a loss by providing services at low prices.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>Acknowledging the role of the private sector, a provision has been made for the private sector&rsquo;s representation in the Nepal Tourism Board. What is your assessment of its performance?</strong></span></div>
<div>
	Interactions with representatives of the tourism sector, have shown that the planning, execution and other roles of the NTB have not been up to our expectations. The post of Chief Executive Officer of NTB has been vacant for the past two years. We maintained that there should be representation on the board of NTB from professional associations like TAAN and NATTA. Only this can ensure true representation of the private sector as well as avoid controversies and politicisation.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>What are some future plans in developing new trekking trails?&nbsp;</strong></span></div>
<div>
	There is a need for parallel trails where previous ones have collapsed due to road expansion. Since our geography is complicated, we must collaborate with the government for developing trekking trails. We have been stuck with the same old trails like Annapurna and Langtang trails, but we have to make new trails that encompass the mountains stretching across the country.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<span style="font-size:14px;"><strong>How is revenue collected from the distribution of Trekkers&rsquo; Management Information System (TIMS) cards?</strong></span></div>
<div>
	The revenue of TIMS is for developing infrastructures, promoting, conserving and maintaining trekking trails. A committee was formed for the monitoring of the TIMS revenue. We will plan to spend this money constructively following the report from this committee.&nbsp;</div>',
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			'created' => '2013-09-30',
			'modified' => '0000-00-00',
			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'The thought that the private sector should now take the lead in boosting the tourism industry is gaining momentum. That one in four visitors to Nepal go trekking should say something about the popularity of this activity in the country. Around 1000 trekking agencies are affiliated with the Trekking Agencies’ Association of Nepal (TAAN). Sagar Pandey, Executive Chairman of the Himalayan Glacier Trekking, was elected as the General Secretary of TAAN at the recently held general convention of the association.',
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			'article_category_id' => '134',
			'title' => '‘Nepal Has The Capacity To Emerge As An Outsourcing Base Camp',
			'sub_title' => '',
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			'content' => '<p>
	&nbsp;</p>
<div>
	Khem Raj Bhattarai is the founder and CEO of KRB Software Pvt Ltd. As an emerging software developer, the company is focused on producing management system products along with other services. Bhattarai talked to Sanjeev Sharma of The Corporate about the company&#39;s plans and his views on the Nepali software industry. Excerpts:</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What products and services does KRB Software offer?</strong></div>
<div>
	&nbsp;</div>
<div>
	We are basically offering 16 software products. We are producing management system software products under the Kohinoor brand which are targeted to clients such as educational institutions, hotels/restaurants, hospitals/ clinics/ pharmacy, co-operative financial institutions, shopping malls, manpower, educational consultancies etc. We are also producing products for accounting, inventory control, point of sale (POS), human resource management and customer relation management. Besides these, we provide tailor-made software according to the need and demand of clients, tech consulting and software prototyping.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Besides these, what other projects are currently being worked on?</strong></div>
<div>
	&nbsp;</div>
<div>
	Currently we are focused on management system products. We plan to launch other service related products in the near future. KRB Software is planning to expand the hotel management system. We are also designing portals that will help individuals and companies manage their day-to-day work. Similarly, we are also looking to introduce some services based on business-to-consumer (B2C) and business-to-business (B2B) concepts.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>The majority of KRB&#39;s software is built using a web-based platform that can be accessed through mobile devices. Do you have any plan to enter the mobile application market?</strong></div>
<div>
	&nbsp;</div>
<div>
	Mobile devices are making computing tasks a lot easier. Regarding this, we are developing software using web-based platforms which allow the users to access the products through their mobile devices. The company is planning to enter the mobile apps markets and a mobile application developer team has been formed for the purpose. We are looking to develop the existing management system software products into mobile apps too. We are also planning to develop mobile games and astrology apps.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>While talking about software, security always emerges as a major concern. How do you ensure the security of your products?</strong></div>
<div>
	&nbsp;</div>
<div>
	In terms of data and system security, I can ensure you that our products are 100 per cent secure. The software are developed using the latest technology which are well shielded and protected. We provide a world class security system which cannot be breached by hackers. We have also developed a system which tracks our software products that are installed into the computers of individual clients. However, for optimal level of security, the machines of clients too should be well protected.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What is the response from your clients? How do you assess the prospect of tailor-made software to cater to the needs of Nepali clients?</strong></div>
<div>
	&nbsp;</div>
<div>
	We are fully satisfied with the warm response from Nepali clients. Our domestic clients are gradually leaning towards locally produced software products. The user-friendly system, flexibility and customization are some of the main factors attracting Nepali clients.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What are the benefits of using software produced by your company compared to the products of big international names?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	As far as I know, there are very few management system software available in the Nepali market. Products from big international developers are not able to fulfill the need of Nepali clients. Our products are developed by Nepali engineers, developers and designers who are well aware of the needs of domestic clients. Besides this, our software products are also reasonably priced and highly efficient compared to foreign brands. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>KRB Software has outsourced for some Fortune 500 companies. How do you assess the prospect of an outsourcing market in Nepal?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Yes, we have done outsourced tasks for some big multinational companies in the past. However, we experienced that the outsourcing market in Nepal is poorly managed. There is no policy regarding IT outsourcing. The banking rules of our country won&#39;t let us do direct financial transaction with the foreign companies. For instance, the Nepali financial system is not linked with the global online payment gateway PayPal. This is causing a big problem for receiving payments from foreign firms. Likewise, the outflow of IT manpower from the country is another problem. &nbsp;Nepali outsourcing market can witness a rapid growth if these issues are properly addressed. The outsourcing market could be a major foreign currency earner if properly taken care of. Looking at the current scenario of manpower production (software engineers, programmers, designers etc), Nepal possesses the capacity to emerge as an outsourcing base camp in Asia.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Nepal is witnessing a steady growth of software market. What are the challenges underlying the market?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Sales of product and service are the most challenging aspects. We have to ensure our clients about security and convince them that the products will fulfill their needs. Pricing of the products is another challenge. Many developers are selling unbranded products at very cheap prices which is hampering healthy competition in the market. This is somehow affecting developers like us who are committed to sell quality products developed using standard procedures.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Are Nepali software developers getting any help from the government?</strong></div>
<div>
	&nbsp;</div>
<div>
	Sadly, the government is not helping the Nepali software industry. Many government offices and projects are using foreign products that cost thousands of dollars. This is resulting in a huge amount of capital flight. We can develop any type of high quality software products that will fulfill the need of governmental tasks. The government should start using locally produced software which will be of great help to us. We also encourage people to use domestic software products hoping that it will reduce capital and human resource flight from Nepal.&nbsp;</div>
<div>
	<br />
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-09-23',
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			'keywords' => 'new business age  interview news & articles, interview news & articles from new business age nepal, interview headlines from nepal,  current and latest interview news from nepal, economic news from nepal, nepali interview economic news and events,  ongoing  interview news of nepal',
			'description' => 'Khem Raj Bhattarai is the founder and CEO of KRB Software Pvt Ltd. As an emerging software developer, the company is focused on producing management system products along with other services. Bhattarai talked to Sanjeev Sharma of The Corporate about the company's plans and his views on the Nepali software industry. Excerpts:',
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			'id' => '1806',
			'article_category_id' => '134',
			'title' => '‘Nepal Needs Urgent Reforms, Not Tourism Year Gimmick’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:14px;"><strong><img alt="Raja Ram Giri," src="/userfiles/images/iv.jpg" style="float: left; margin: 0px 10px 0px 0px;width: 200px; height: 221px;" />Raja Ram Giri</strong>, an NRN based in London, is Director of Samsara Nepal Financial Services Ltd, the first money transfer company in the UK to be owned by a Nepali. He is also the Managing Editor and Publisher of Himalayas magazine, an annual publication that promotes Nepali tourism in the UK and Europe. Giri spoke to Britant Khanal of The Corporate Weekly about the performance of his businesses in the UK.<strong> Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>What is the concept behind launching a magazine like Himalayas in the UK? Who are its readers and what has been the response thus far? &nbsp;&nbsp;</strong></div>
<div>
	This magazine was not the reason why I went to UK. Initially, I wanted to study Information Technology. I was studying at a university where there were no students from our side of the world which made me feel very alien. One day a professor told me that he had been to my country. But when he described what he saw, I realized he was talking about Darjeeling, not Nepal. That was when I quit IT and shifted to Tourism Studies and planned to do something that would make the world recognize my country. So, this magazine was an outcome of my ego and pride. It has been doing a decent job in making our country known in London and many parts of Europe. &nbsp; &nbsp;&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What has your role been so far in promoting Nepali Tourism to the rest of the world?</strong></div>
<div>
	When I started studying tourism, Nepal was celebrating the Visit Nepal Year 1998. &nbsp;Since the country was celebrating a national festival, I thought of doing something along the same lines, and then contacted the Nepali embassy in the UK. With their help, I held a small cultural programme at my college in front of almost 1,300 students explaining what Nepal is and what it looks like. The programme was very much appreciated. Since then, I have been doing the same job trying to tell people how beautiful my country is and taking pride in it. &nbsp; &nbsp; &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What are some tangible hindrances seen in promoting Nepali tourism to the rest of the world?</strong></div>
<div>
	What our politicians have to understand is that declaring a tourism year will not bring tourists. They will have to work on tourism policies to attract tourists instead of showering flowers from helicopters on the day of declaration and spending millions on inaugurals. They will have to explain to tourists what Nepal looks like and what our culture is. They could have come with cultural programmes in famous places of different cities like the Trafalgar Square, London or may be some place in New York, too. Another basic obstruction is transportation - the Government of Nepal has not been able to provide sufficient number of flights of the Nepali airlines to and from tourist originating areas.</div>
<div>
	&nbsp;</div>
<div>
	<strong>You are also associated with the Kathmandu-Kulekhani-Hetauda Tunnel Road. Could you tell us a little about that?</strong></div>
<div>
	We have been working on the Kathmandu-Kulekhani-Hetauda tunnel road and it is one of the first private sector initiatives in structural design and work. This project seems very promising for transportation. It will assist in the smooth functioning of business and economy. This project also hopes to bring a lot of investments from Samsara UK and a lot from non-resident Nepalis living in UK. There are reasons why these kinds of project are not pacing up in our country. For one, we are still using the traditional way of construction. We still see workers using hammers on the road whereas technology around the globe has taken a leap ahead. Therefore, we are working hand-in-hand with other domestic companies to bring required changes in infrastructure to speed up the pace of work.</div>
<div>
	&nbsp;</div>
<div>
	<strong>You own a company called &lsquo;Samsara Nepal&rsquo; in the UK. What is the function of this company and what are your future plans for Nepal?</strong></div>
<div>
	Samsara Nepal is basically a company for remittance. This company too was an outcome of an incident. I was working in some other company back then in the UK and had sent some money back home which unfortunately went to Mumbai because the company I sent the money through thought Kathmandu was in India, and had written KTM India in the address. The money went to an Indian branch which was in Mumbai. Later, I filed a complaint and resent the money.</div>
<div>
	&nbsp;</div>
<div>
	Sixteen years back, when I first went to the UK, there were no proper and reliable remittance companies to send money through. There was an informal money sending mechanism popularly known as the Hundi system of which the government has no record of. Therefore, we came up with an idea of setting up a company which would provide a safe way to send money back home. We have now been working with Sunrise Bank, Himalayan Bank and Standard Chartered Bank in sending hard earned remittances back home. &nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Besides sending money from London to Nepal, this company also wants to promote our national economy. Samasara Nepal wants to suggest the government to impose a certain level of taxes on the remittance which immigrants could use after returning back to the country. This would benefit the individual and the nation overall, because while an amount approximately equal to 27 per cent of Nepal&rsquo;s GDP comes in as remittance, it has not been invested in a productive sector as far as I know. The government should focus on capitalizing on remittance by investing it in productive sectors.</div>',
			'published' => true,
			'created' => '2013-09-16',
			'modified' => '0000-00-00',
			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'Raja Ram Giri, an NRN based in London, is Director of Samsara Nepal Financial Services Ltd, the first money transfer company in the UK to be owned by a Nepali. He is also the Managing Editor and Publisher of Himalayas magazine, an annual publication that promotes Nepali tourism in the UK and Europe. Giri spoke to Britant Khanal of The Corporate Weekly about the performance of his businesses in the UK.',
			'sortorder' => '1667',
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	(int) 3 => array(
		'Article' => array(
			'id' => '1723',
			'article_category_id' => '134',
			'title' => '‘Comprehensive Strategy Needed For Hydropower Development’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:14px;"><strong><img alt="Yasing Zhang,Senior Vice President of Sinohydro Resources Ltd, " src="/userfiles/images/yz.jpg" style="float: right; margin: 0px 0px 0px 10px;width: 200px; height: 184px;" />Yasing Zhang</strong> is the Senior Vice President of Sinohydro Resources Ltd, a Chinese multinational hydropower and infrastructure company. Zhang was in Kathmandu to attend the two-day Power Summit 2013. In a tete-e-tete with <strong>Sanjeev Sharma</strong> of The Corporate, he expresses his plan to tap hydropower potential in Nepal.&nbsp;</span></div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Power Summit&nbsp;</span></strong></div>
<div>
	I think, the Power Summit 2013 organised by the Independent Power Producers Association of Nepal (IPPAN) has provided a platform for investors, policy makers and stakeholders to freely express their views and to discuss various topics regarding the hydropower sector. I believe that the discussions helped iron out major hassles prevailing in the sector. In this regard, the Power Summit 2013 has successfully achieved its goal to hasten the pace of hydropower development in Nepal.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">FDI in the Hydropower</span></strong></div>
<div>
	As an investor, we feel that there is an absence of preferential and privilege policies to attract foreign investment in Nepali hydropower projects. There are no incentives in terms of taxes for foreign investors. The tax burden created from provisions of contract tax and value added tax (VAT) is putting pressure on the developers. The absence of proper insurance policies pertaining to hydropower has also been hindering foreign investment. Investments in projects are always at risk in case of natural disaster or big technical failures if there are no proper insurance policies in place.</div>
<div>
	&nbsp;</div>
<div>
	&nbsp;It is necessary to formulate investment-friendly policies to attract Foreign Direct Investment (FDI). Thus, policy makers should harmonise existing laws.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Problems for Investors</span></strong></div>
<div>
	Nepal has tremendous hydropower potential. But the country has yet to tap its potential due to several problems mostly linked to project licensing, technical issues as well as legal hurdles. I think the Nepal government should be ready to relax existing hassles on agreement and licensing to ensure timely service delivery. In Nepal, there is no procedure in accordance with international standards to issue Project Development Agreements (PDA), which slows the pace of project development and adversely affects the sentiment of developers. The initial survey licenses of various major projects are held by domestic/foreign developers for several years or even decades. Similarly, there are also issues regarding Power Purchase Agreements (PPA). The fluctuation in foreign exchange rate makes things difficult for power developers as they are more likely to face loss in selling the electricity they generate. These issues should be addressed first hand.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	There are several infrastructure-related constraints. Poor roads, lack of transmission lines, difficulties in conducting projects in remote areas and insufficient supply of construction materials and equipments are other problems in developing a project here. &nbsp;Likewise, awarding a single river basin to many contractors is also adding complications. Some social and political influences such as frequent protests and strikes against particular projects and inadequacy of local skilled staffs are other contributing factors.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Solutions to the Existing Hassles</span></strong></div>
<div>
	Effective policies are needed to solve all aforementioned problems. Developing common standards and procedures concerning hydropower investment will also have positive impact. A common standard and procedures should address issues regarding contract and licenses, company registration, bank account opening and control of foreign currency. Issues regarding the holding of initial license can be solved by cooperation with or transferring from the initial license holder. As far as PDA and PPA are concerned, the government should follow procedures in line with international standards.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	There is an exigency in preferential policy provision on hydropower investments. This includes duty exemption and tax reduction on raw materials, construction equipments, vehicles, and the income of power developers. Convenience on custom clearance and flexibility in work visa will also boost the morale of foreign investors. There are several issues regarding land acquisition by the projects. This issue could be solved by issuing instructive principles of land acquisition. Establishing a general administration on land acquisition and transfer capable of providing guiding land price in different regions and project areas will be the first right step. Secondly, simplifying the land acquisition and transfer procedure is also necessary.</div>
<div>
	&nbsp;</div>
<div>
	One-stop service of hydropower development can deliver effective solutions. For that, the government should set-up a stable and comprehensive agency responsible for hydropower administration in Nepal.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Water Resource Management&nbsp;</span></strong></div>
<div>
	Hydropower development is directly linked to water resource management. If properly managed, the water resource of a single project can be used for various purposes. For this, Nepal needs to identify pilot projects. Those projects should be fairly large enough in terms of power generation. This will help focus efforts in hydropower development. Apart from electricity generation, such projects may also provide water for irrigation and drinking.</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Sinohydro&rsquo;s Plan&nbsp;</span></strong></div>
<div>
	Sinohydro Resources Limited is the overseas investment window of Power Construction Corporation of China (Power China). We have been in overseas investment business since 2004 with a registered capital of USD 400 million. We entered the Nepali market in 1995 and successfully accomplished six major hydropower, irrigation and infrastructure projects since then. The Ilam Hydroelectric Project, Modi Hydroelectric Project, Sikta Irrigation Project Phase 1, Sunsari-Morang Irrigation Project, and Bagmati Irrigation Project were handed over to the Nepal government after completion. Similarly, we upgraded the Tansen-Tamghas road project. Currently, Sinohydro is engaged in civil works of Kulekhani 3 and Upper Tamakoshi. Likewise, the 50MW Upper Marsyangdi &lsquo;A&rsquo; hydropower project is being developed with our investment.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong><span style="font-size:14px;">Nepal should Take Advantages</span></strong></div>
<div>
	Nowadays, trading of surplus power is becoming a lucrative trade in the world. Nepal can earn substantial amount of money from such trading. I suggest the government and concerned authorities to formulate a master plan of power consumption. The plan should assess domestic requirements and power for export. Similarly, the establishment of a nationwide transmission network is also necessary for electricity export.&nbsp;</div>',
			'published' => true,
			'created' => '2013-09-02',
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			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'Yasing Zhang is the Senior Vice President of Sinohydro Resources Ltd, a Chinese multinational hydropower and infrastructure company. Zhang was in Kathmandu to attend the two-day Power Summit 2013. I',
			'sortorder' => '1584',
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	(int) 4 => array(
		'Article' => array(
			'id' => '1688',
			'article_category_id' => '134',
			'title' => '‘Malaysia Tourism Aiming 36 Million  Tourist By The Year 2020’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:14px;"><img alt="Amran Abdul Rahman, director of Tourism Malaysia" src="/userfiles/images/mls.jpg" style="
float: left; margin: 0px 10px 0px 0px;width: 200px; height: 239px;" />The World Tourism Organisation has declared Malaysia as the 9th most visited country in the world for the last three consecutive years since 2009 and it has also achieved another feather on its hat by becoming the tenth friendliest country across the globe as declared Forbes Online. What makes Malaysia so especial and to share tourism promotional activities in Nepal, <strong>Amran Abdul Rahman</strong>, director of Tourism Malaysia in a rendezvous with The Corporate Weekly Associate Editor <strong>Sujit Nath</strong> revealed how Malaysia became the hot destination for the tourists from all over the world. <strong>Excerpts:</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>What is purpose your of visit in Nepal?</strong></div>
<div>
	This is for the first time I came to Nepal to get a first-hand experience of the market. Tourism Malaysia is doing market research in Nepal for the last 14 years and so far the response is good. &nbsp;I came here to welcome the people here to Malaysia under our promotional banner of &lsquo;Visit Malaysia Year 2014&rsquo;. A seminar was recently conducted on tourism on August 23 in association with the local tour operators. I look forward for a better relationship with Nepal in terms of tourism.</div>
<div>
	&nbsp;</div>
<div>
	<strong>How you rate Nepal as a market in terms of tourism?</strong></div>
<div>
	I think there is a great market in Nepal and its growing as compared to last year. An average Nepali tourist spends nearly 62,423.76 NPR, which is 2000 Malaysian Ringgit. Tourists from Nepal prefer to stay longer as compare to Indian tourists. So, the more they will stay &mdash; the more we will be able to generate the revenue. In Malaysia people more about Nepal than India because of its long association and common features in terms of lifestyle. But we are happy that response from Nepal and India is so far good.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What category of Nepali tourists prefers Malaysia as their favourite tourist destination?</strong></div>
<div>
	Most of the Nepali tourists come with their family but we have seen in recent years that a large number of youngsters are also exploring Malaysia. In last six months from January to June there was a growth of 33.7 per cent Nepali tourist in Malaysia. This was a significant growth and we are happy that the market is growing. We are confident to serve our best to the Nepali tourist with utmost homely care. It&rsquo;s our privilege to provide a comfortable stay in Malaysia.</div>
<div>
	&nbsp;</div>
<div>
	<strong>The banner &lsquo;Visit Malaysia Year 2014&rsquo; seems inviting with its marketing strategy. Could you please elaborate on that?</strong></div>
<div>
	Well I must say it will be the year of fun and frolic with endless new day-night mesmerising shows. What added more zeal, is the scheduled Grand Prix, which is going to be the show stopper. We are expecting a large number of tourists from across the globe to witness the carnival. For the shopping lovers, we are organizing a big event under the banner of Malaysia Mega Sale festival where the tourists will get all kind of branded lifestyle items in a cheaper price.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Malaysia tourism is doing a lot of promotional activities for Business and customized personal tourism. Could you share your views on the latest trend and response on Business tourism?</strong></div>
<div>
	It&rsquo;s a high end tourism segment and the Malaysia Convention and Exhibition Bureau (MyCEB) &mdash; meant to deal with the business tourism &mdash; has a done a commendable job. There is a rise in the business meetings of some of the big corporate houses in the world. The other areas, which include customized personal tourism packages, are weddings, honeymoon, cruise, luxury tourism etc. We are getting good revenue in these&nbsp;</div>
<div>
	segments too.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Tell me something about the overall all tourism scenario in Malaysia?</strong></div>
<div>
	In 2011, Malaysia recorded 24.7 million tourist arrivals with tourist receipts totaling RM 58.3 billion. In 2012, the country&rsquo;s tourist arrivals and receipts registered more than 25 million RM. The Malaysia Tourism Transportation Plan is targeting 36 million tourist arrivals and RM 168 billion in receipts by the year 2020. Kuala Lumpur was voted as the fourth best shopping city in the world and I am sure with other attractions which we have in Malaysia, we will be able to woo more tourists from Nepal and India.</div>',
			'published' => true,
			'created' => '2013-08-26',
			'modified' => '0000-00-00',
			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'The World Tourism Organisation has declared Malaysia as the 9th most visited country in the world for the last three consecutive years since 2009 and it has also achieved another feather on its hat by becoming the tenth friendliest country across the globe as declared Forbes Online.',
			'sortorder' => '1549',
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	(int) 5 => array(
		'Article' => array(
			'id' => '1638',
			'article_category_id' => '134',
			'title' => 'Necessities Of Commercial Bench',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<strong style="font-size: 14px;"><img alt="Shreekant Poudel,the spokesperson of the Supreme Court." src="/userfiles/images/BK.jpg" style="float: right; margin: 0px 0px 0px 10px; width: 175px; height: 224px;" />Shreekant Poudel</strong><span style="font-size: 14px;"> Is the spokesperson of the Supreme Court. In an interview with </span><strong style="font-size: 14px;">Britant Khanal</strong><span style="font-size: 14px;"> of The Corporate weekly he shed light on the introduction of commercial bench and its need.</span><strong style="font-size: 14px;"> Excerpts:</strong></div>
<div>
	&nbsp;</div>
<div>
	<strong>Could you highlight the reason behind establishing the commercial bench?</strong></div>
<div>
	The first and foremost reason behind the establishment of this bench is the need for speedy justice, easy access and quick legal remedies for the commercial sector. Even more important is the demand made by the law in many acts after the second Jana Andolan. It is clearly mentioned that such and such cases will be dealt by the commercial bench like for instance in Section Z8 of the Company Act. After 2006, the World Bank had also suggested the requirement of such a bench. The Company Act, the Secured Transaction Act and other acts related to safe competition have mentioned the requirement of this bench. Was this issue initiated by ADB? I don&rsquo;t think so but the ADB had some general interest and it had recommended on bringing such a bench too.</div>
<div>
	&nbsp;</div>
<div>
	<strong>What new prospects will the bench bring? Will it have the same old practices disguised as new?</strong></div>
<div>
	In the process of establishing this bench we had to and we still are training judges, judicial staffs and even lawyers. The training lasts from one to one-and-a-half months as per requirement. The judges who attend the training are only sent to the bench for hearing commercial cases. The new commercial bench will therefore slowly shed some old ways.</div>
<div>
	&nbsp;</div>
<div>
	<strong>There seems to be a paradox in the bench being established for the benefit of the commercial sector while the jurisdiction seems a bit scattered, vague and ambiguous. Could you talk a little about this? &nbsp; &nbsp;</strong></div>
<div>
	We are still in the starting phase of establishing the bench. As per my knowledge, the initial requirement was that of a separate commercial court which came down to establishing a commercial bench in appellate courts. This was required because cases related to the commercial sector are heard in a scattered manner. For example, cases of contract are first heard by the district court, that of patents are heard by the department of industry, and many cases are addressed by the Nepal Rastriya Bank (NRB) too. Therefore, a common institution to streamline all commercial cases and bring them under one umbrella seemed to be necessary.</div>
<div>
	&nbsp;</div>
<div>
	Home work is yet to be completed. It was rightly questioned whether or not offences in banking will be dealt by the commercial bench. The issue is still subject to research and analysis. There are other issues also like that of intellectual property and cases of revenue tribunal. So there is a lot to be done and we are striving to bring all of these cases under the commercial bench.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Has the bench been established in all appellate courts in the country?</strong></div>
<div>
	No, we have not established commercial benches in all appellate courts as they are established in a need-based manner. The previous chief justice had recommended the bench to be established in six places including Pokhara but later it was only established in four places. We therefore have established this bench in five places, Hetauda being the youngest which was established two years back and the other four are Biratnagar, Hetauda, Butwal, Nepalgunj and Patan.</div>
<div>
	<img alt="Cases Regarding Commercial Bench" src="/userfiles/images/cbnch.jpg" style="width: 500px; height: 235px;" /></div>
<div>
	<table border="0" cellpadding="10" width="99%">
		<tbody>
			<tr>
				<td bgcolor="#FFFFFF">
					<div>
						&nbsp;</div>
					<table align="right" border="0" cellpadding="1" cellspacing="1">
						<tbody>
							<tr>
								<td>
									<img alt="Gandhi Pandit Advocate" src="/userfiles/images/GP.jpg" style="width: 200px; height: 250px;" /></td>
							</tr>
							<tr>
								<td style="text-align: center;">
									<div>
										<strong>Gandhi Pandit</strong></div>
									<div>
										Advocate</div>
								</td>
							</tr>
						</tbody>
					</table>
					<div>
						<h1 style="text-align: center;">
							&lsquo;We are still at the initial stage&rsquo;</h1>
						<div>
							<strong>What is your take on the commercial bench?</strong></div>
						<div>
							The judges must be competent to look at all kinds of cases, but frankly, that is not possible all the time because of growing trade issues in the domestic and global markets and because some of the cases are so sophisticated that they require specialised knowledge and high expertise is not available in the country. Smooth functioning of the economy will require a better legal system which will support rapid growth and development. Therefore, the present context demands a commercial bench to go in hand in hand with the pace of development in order to be able to forge a conducive environment for global as well as domestic investors.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							<strong>Where can we trace the footprints of this system?</strong></div>
						<div>
							This system can be traced to the continental legal system, commonly understood as the French and German legal system. In these systems, we can see the trends of a commercial tribunal, a labour tribunal, an industrial tribunal, among others. In these kinds of tribunals the specialised skills of various sectors are brought for the better understanding of the case. And this system was later followed by Britain and the United States of America. Therefore, this pragmatic approach has led to speedy justice and quick legal remedies in these nations. But in our context, we are still lagging behind. Our judges are still traditional and are only specialised in traditional issues such as cases of land dispute, writ petition, etc. whereas we don&rsquo;t have expertise on cases like letter of credit, IT law, intellectual property law, cases of trademark and so on.&nbsp;</div>
						<div>
							&nbsp;</div>
						<div>
							<strong>What could be the possible remedy to such lacunae and paralysis?</strong></div>
						<div>
							Establishing the bench is one thing and effectiveness is another. As judges are frequently transferred to places without access to such knowledge, they will require training, and attending the training once will not make an impact as there has to be periodic training which we are lacking. Therefore the national judicial academy has been training judges but in the same traditional cases only. Not enough training has been provided in the field of modern commercial issues. Another major problem is procedural delay. These kinds of hurdles will further delay justice and so they will have to be reduced to a minimum. Such deficiencies in the system will give a very wrong message to foreign investors.</div>
					</div>
					<div>
						&nbsp;</div>
				</td>
			</tr>
		</tbody>
	</table>
</div>
<p>
	&nbsp;</p>',
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			'created' => '2013-08-19',
			'modified' => '0000-00-00',
			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'The first and foremost reason behind the establishment of this bench is the need for speedy justice, easy access and quick legal remedies for the commercial sector.',
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	(int) 6 => array(
		'Article' => array(
			'id' => '1592',
			'article_category_id' => '134',
			'title' => '‘CAAN Plans To Improve Eight Airports In Remote Areas’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<strong><img alt="Ratish Chandra Lal Suman,Director General of Civil Aviation Authority of Nepal (CAAN)." src="/userfiles/images/rcls.jpg" style="float: right; margin: 0px 0px 0px 10px;width: 200px; height: 219px;" />Ratish Chandra Lal Suman</strong> is the Director General of Civil Aviation Authority of Nepal (CAAN). In an interview with <strong>Raju Baskota</strong> of The Corporate, Suman shared the plans and parameters of CAAN and the International Civil Aviation Organization (ICAO). <strong>Excerpts:&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	<strong>What is the progress made thus far in regulating domestic and international air services and in division of work among service providers?</strong></div>
<div>
	We are in the last phase of regulating air services and the division of work. &nbsp;We are planning to finalize the process by 2015 and our consultants too have provided a report accordingly. CAAN rules need to be amended for the implementation of the report; we need government support for this and are working towards it.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Could you elaborate on the division of work?</strong></div>
<div>
	It is important to form different committees for operating an airport, providing services and deciding its rules and regulations. This is an international practice and was discussed since the establishment of CAAN. But air services were very few then although now it is gradually increasing. A systematic process is needed for work division, which is taking time.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Will differentiating work and regulation services mitigate safety risks?</strong></div>
<div>
	Yes, risk will be mitigated with these measures. Division of work will bring simplicity in work and work load will automatically grow lighter. This in turn will help in risk reduction. We also are expecting to reduce the safety challenges by regulating air services differently on the basis of domestic and international air services.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What have been CAAN&rsquo;s recent achievements?</strong></div>
<div>
	We prioritized improving the standard of our airports by adding new technologies and increasing safety. The Air Traffic Controller (ATC) automation system has begun due to this and new radar will be placed by 2015 too. We are also working on minimizing safety challenges and on improving the management system.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Does CAAN itself devise the budget for the improvement of airports?</strong></div>
<div>
	Government&rsquo;s grants and the total amount of shares invested are kept in the same basket by CAAN. The aviation authority is allowed to allocate its annual revenue and the government&rsquo;s grants to areas as required. With such allocations, we have completed construction of seven airports within the past three years. CAAN is also allocating funds to improve other airports. This fiscal year, CAAN is planning to improve eight airports in remote areas.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What is being done to operate Nepali airline services according to the standards and rules of the International Civil Aviation Organization (ICAO)?</strong></div>
<div>
	CAAN is taking gradual steps for this. Nepal is also working to have safety audits considering ICAO standards. Similarly, we are planning to set parameters for both domestic and international flights, to systemize work process and policies, focusing on the safety of air services. CAAN will request to repair the aircraft&rsquo;s system for landing and take-off and if it is not complete, we will take action accordingly.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>CAAN has added parameters for Air Operator Certificate Requirements (AOCR). Airline companies are calling it impractical. What is your take on the matter?</strong></div>
<div>
	How is it impractical? Airline companies are not behaving as per the requirement of airline services and now they are calling the new AOCR impractical. A company that can bring an airline worth Rs 500 million can obviously pay the required amount for its certification. For the smooth operation of aircraft, we have set a deposit of Rs 2.5 million for helicopters, Rs 5 million for domestic flights and Rs 500 million for international flights. This parameter must be followed.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What is the progress on CAAN&rsquo;s decision to buy an aircraft?</strong></div>
<div>
	CAAN is a regulatory body and is supposed to develop rules and regulations, conduct frequent analyses and training. An aircraft was needed for aviation training. The Authority possessed one aircraft 10 years ago which crashed and has not been replaced since. The Authority has thus allocated Rs 570 million to buy a Twin Otter aircraft. In case this amount is insufficient, some more funds will be provided. We are planning to open a tender to bring a Twin Otter aircraft by September 2015.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>There are rumours that CAAN is buying an aircraft to only serve politicians. What do you say?</strong></div>
<div>
	&nbsp;We have considered the matter of buying an aircraft very seriously. We will form specific parameters to operate it by providing 10 per cent of the maintenance cost for regular services of aircrafts and 90 per cent for business purposes. The maintenance and insurance costs, and additional parts of the aircraft are all included in the fund allocated for its purchase.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Why is the Authority weak in keeping a clear statement of income and expenditure of airports?</strong></div>
<div>
	We are analysing the income-expenditure figures of all airports currently. If we analyse the investment and operation costs of all airports, we can see that every airport including Tribhuvan International Airport (TIA) is making a loss. As for the annual operation of flights, only seven airports in trunk routes, that have maximum passenger flows are in profit.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>CAAN has a budget of Rs 11 million for this fiscal year. Is the construction of new airports included in it?</strong></div>
<div>
	Of the total budget, Rs 7 million has come from government grants and share capital and Rs 4 million has come from the Authority&rsquo;s internal source. The total expenditure of the Authority will mainly go to the construction and capacity enhancement of airports, keeping the government&rsquo;s suggestions in consideration.</div>
<div>
	&nbsp;</div>',
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			'created' => '2013-08-12',
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			'description' => 'Ratish Chandra Lal Suman, the Director General of Civil Aviation Authority of Nepal (CAAN) shared the plans and parameters of CAAN and the International Civil Aviation Organization (ICAO).',
			'sortorder' => '1453',
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	(int) 7 => array(
		'Article' => array(
			'id' => '1545',
			'article_category_id' => '134',
			'title' => '‘This Budget Supports  A Liberal Economy’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size: 12px;"><strong><img alt="Dr Chiranjibi Nepal,Chief Economic Advisor at the Ministry of Finance." src="/userfiles/images/Dr%20Chiranjibi%20Nepal.jpg" style="float: right; margin: 0px 0px 0px 10px;width: 150px; height: 188px;" />Dr Chiranjibi Nepal </strong>is Chief Economic Advisor at the Ministry of Finance. In an interview with Sweta Sharma of The Corporate weekly, he shed light on the nature of the budget for FY 2013-2014. <strong>Excerpts:&nbsp;</strong></span></div>
<div>
	&nbsp;</div>
<div>
	<strong>To what extent do you think the current budget will boost the economy of Nepal?&nbsp;</strong></div>
<div>
	The country&rsquo;s economy has suffered badly whenever the budget was presented late. After six long years, the government came up with a full-fledged and timely budget concentrating on core areas such as energy, agriculture, infrastructure, education and health. I believe that the timely announcement of the budget is a very positive sign for development and can boost the economy largely. The government has also aimed for a growth rate of 5.5 per cent which is certainly going to be achieved with the budget of the current fiscal year.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Given that the growth rate recorded for the past 10 years has been 3.7 per cent in average, how realistic is this year&rsquo;s target of 5.5 per cent?&nbsp;</strong></div>
<div>
	Late budgets in the past have affected capital expenditure to a large extent. The current budget has taken initiatives which could stimulate the flow of capital expenditure and improve economic activities. The current budget has also addressed important social and economic issues and is advocating for a stronger role of the private sector to spur the economy. In this regard, we can say that, with proper implementation of the budget, 5.5 per cent growth target is achievable.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What major policy changes did the government miss to address in this year&rsquo;s budget and why?&nbsp;</strong></div>
<div>
	I don&rsquo;t think the budget has missed addressing any important issue. The budget as a whole is inclusive as it has considered every sector - social, economic, infrastructure and business. This budget supports a liberal economy. It also encourages the private sector to take the lead. Considering these things, there are not many changes that have to be made for now.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>This budget has brought a number of populist programmes to serve certain political parties. What is your comment on this?&nbsp;</strong></div>
<div>
	I disagree with the statement that the government has brought populist programmes. It has brought programmes that are for everyone. Unlike previous years, the current budget has been least criticised. At the macro level, the budget has brought a long term programmes which is a must to boost the economy. Similarly, the budget focuses more on the private sector. Therefore, the budget is not controversial.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>In hydropower, the budget allocation for transmission lines is largely from donors. The government did not set aside anything for land acquisition. Why this lapse?&nbsp;</strong></div>
<div>
	Yes, to some extent there have been lapses but it is being corrected. The budget allocation for land acquisition is still being processed and the government is contributing to this purpose. The budget has emphasised energy sector with belief in its importance to uplift the economy. The government is concerned about the land acquisition issue and is on the move to provide maximum support. The government plans to eliminate the chronic problem of power outage within the next three years.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Private sector hydropower developers have expressed dissatisfaction since the budget has not provided incentive for private power producers. What are your comments on this?&nbsp;</strong></div>
<div>
	We have to understand that the environment being created for hydropower is itself an incentive. The budget has allocated a huge sum for the energy sector which is also a form of incentive. This has initiated an environment for investment in energy which can later bring profit to the private sector. But merely arranging a budget cannot bring about desired results if not backed by effective implementation. Thus, the government is committed towards effective implementation of programmes that have been put forward.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>The budget has Rs 300 million allocated for export incentives which the private sector says is peanuts. What do you think?&nbsp;</strong></div>
<div>
	Export depends on competition with other countries. To present Nepal as a competitor, the amount allocated for exports is sufficient and very convenient in our context. The private sector has expressed satisfaction in the budget stating that it has attempted to address most of the concerns raised by the business community.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>While the budget speech mentions a deficit of Rs 87.7 billion, budget documents prepared by the Ministry of Finance caps deficit at Rs 40.5 billion. Why such a huge discrepancy?&nbsp;</strong></div>
<div>
	There has been a misunderstanding about the budget deficit. The exact figure for deficit is Rs 87.7 billion. To balance it, the new budget attempted to incorporate limited number of new programmes that are necessary to encourage exports, generate energy and boost the morale of the private sector. In order to improve Nepal&rsquo;s export performance, various issues on the domestic and international fronts have to be addressed.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>A lot of money is allocated clandestinely for financing the losses of public enterprises (PEs). Why can&#39;t the government allocate funds openly for PEs?&nbsp;</strong></div>
<div>
	Public enterprises are incurring losses. To overcome this problem, we are trying to search for partners in Nepal Telecom and Agricultural Development Bank. For other public enterprises, we are preparing to change their structure and to take them towards privatisation. There is a policy to carry out such activities. We are also closing down some enterprises which cannot earn profit and cannot sustain for long.</div>
<div>
	&nbsp;</div>',
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			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'Dr Chiranjibi Nepal,Chief Economic Advisor at the Ministry of Finance shed light on the nature of the budget for FY 2013-2014.',
			'sortorder' => '1406',
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	(int) 8 => array(
		'Article' => array(
			'id' => '1502',
			'article_category_id' => '134',
			'title' => '‘We Are Receptive To Private Sector’s Suggestions For PDA’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	The Ministry of Energy (MoE) is in the process of finalising the Project Development Agreement (PDA) for power projects. The Corporate weekly&rsquo;s <strong>Janardan Baral</strong> and <strong>Bishnu Belbase</strong> spoke to <strong>Bishwa Prakash Pandit</strong>, Secretary at the MoE about the issues of draft PDA, Power Purchase Price and power transmission lines. <strong>Excerpts:</strong></div>
<div>
	&nbsp;</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
	<tbody>
		<tr>
			<td>
				<img alt="Bishwa Prakash Pandit, Secretary, Ministry of Energy" src="/userfiles/images/Bishwa%20Prakash%20Pandit.jpg" style="width: 175px; height: 181px;" /></td>
		</tr>
		<tr>
			<td style="text-align: center;">
				<div>
					<strong>Bishwa Prakash Pandit</strong></div>
				<div>
					Secretary</div>
				<div>
					Ministry of Energy</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	<strong>The Ministry of Energy (MoE) is about to finalise the template for Power Development Agreement (PDA). What are the major provisions?&nbsp;</strong></div>
<div>
	The Electricity Act of 2049 still exists and foreign and local investors develop the projects remaining within the parameters set in that Act. The PDA is being practiced in recent years throughout the world to increase the security of investment. Private sector entrepreneurs in Nepal too want PDA system. Frequent changes in policies and tax rates have increased the cost in hydro power development and there are risks posed by natural settings as well. The PDA template will include the issue of how such risks are to be shared. We have included this under &lsquo;force majeure&rsquo;. Similarly, the issue of quality and security are also addressed in the PDA template. As the project is eventually to be transferred to the government, the quality issue is important. The social responsibility of the developer is also necessary to be included. The process of handing over the project to the government and disputes settlement mechanisms are also being included.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>To what extent are the private sector&rsquo;s suggestions going to be included in the PDA template?&nbsp;</strong></div>
<div>
	The private sector&rsquo;s suggestions are largely included in the template. The PDA will balance the profit interest of the private sector with the national interests.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>It is said that the PDA drafted by the MoE is not bankable. Why did not the MoE take care about making the PDA bankable?&nbsp;</strong></div>
<div>
	We do understand that the PDA should be bankable. In case the current template is not bankable then we want suggestions from the private sector to make it so. We are preparing the PDA template to make it private sector friendly and have been receptive to the private sector&rsquo;s suggestions.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Most of the power projects developed by the government suffer time and cost overrun. Why?&nbsp;</strong></div>
<div>
	Nepal is still in the process of drafting the constitution. Political instability has continued in Nepal for quite long. And is the main cause of time overrun in projects. Similarly, frequent change in government brings change in the leadership of the power projects programmes. Also the practice of starting a project without enough funds arranged is to blame for this. Similarly, there is the challenge of getting the support from local communities.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Independent Power Producers&rsquo; Association of Nepal (IPPAN) has urged for change in the Power Purchase rates. How is it possible to consider their demand when the only buyer Nepal Electricity Authority (NEA) is in perpetual loss?&nbsp;</strong></div>
<div>
	It is said that the reason behind NEA&rsquo;s loss is the low electricity tariff. The government has a policy to revise the tariff as required by the time. NEA has thus formed a committee to prepare a model power purchase agreement so as to accommodate the view that the power price should be based on generation cost. The committee is considering also the view that a certain Internal Rate of Return should be assured to the developers.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Why is the delay in inking PPA with the &lsquo;super-six&rsquo; hydropower projects?&nbsp;</strong></div>
<div>
	The government has entrusted the super-six hydropower projects to private power producers selected through a bidding process. But the government is not able to fulfill its commitment regarding these projects. However, the MoE is determined to fulfill those commitments. The problem of these projects is lack of transmission lines. Current FY budget has allocated funds for development of these transmission lines. But this budget allocation alone is not enough to hope that there will be transmission lines. I believe that there has been a great mistake of granting license for the super-six projects before the development of transmission lines. We collected money from the private sector but could not prepare the transmission lines on time. Therefore, the private sector is suffering a lot in this regard. Thus, I commit to create situation for these super-six projects to start construction as soon as possible.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Private sector power producers have been asking for PPA in US dollars and NEA is refusing it. This discourages foreign investment. Is it possible to develop hydropower only from domestic investment?&nbsp;</strong></div>
<div>
	PPA in US dollar will not make any difference if the generated electricity is exported. Nepal&rsquo;s currency is not strong enough and costs have increased by signing PPA for Khimti and Bhote Koshi projects in US dollars. This experience is the reason why NEA is hesitating from PPA in US dollars. The MoE, however, has formed a committee to work for agreements in US dollars.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>FY 2013\14 budget has allocated Rs 13 billion for the hydropower and energy sector, focusing on development of transmission lines. Will the transmission line problem be solved now?&nbsp;</strong></div>
<div>
	It is necessary to have a sufficient budget for transmission lines. Foreign grants are included in the budget for the development of transmission lines. But for land acquisition, which is one of the major problems for the transmission lines, the government itself should allocate a budget from its own resources. This is lacking in the budget. We are currently in dialogue with the Ministry of Finance to solve this problem.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>The budget did not address the demand of the private developers for a waiver of VAT on construction materials used by power projects and other demands of the private sector. Why is this so?&nbsp;</strong></div>
<div>
	We are in the discussion about such demands from the private sector. A conclusion is yet to be arrived at on this. So it was not included in the budget. We are, however, determined to encourage the private investors.&nbsp;</div>
<div>
	&nbsp;</div>',
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			'description' => 'The Ministry of Energy (MoE) is in the process of finalising the Project Development Agreement (PDA) for power projects.',
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	(int) 9 => array(
		'Article' => array(
			'id' => '1405',
			'article_category_id' => '134',
			'title' => '‘We Are Soft Now, Shall Be Strict Soon’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="font-size:14px;">Jiwan Prava Lama is the Director General of Department of Food Technology and Quality Control (DFTQC). In an interview with The Corporate&rsquo;s Suraksha Adhikari, she talked about the present controversy about dairy products in Nepal and highlighted the plans of DFTQC for improving quality of foods in Nepali market. <strong>Excerpts:&nbsp;</strong></span></div>
<div>
	&nbsp;</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
	<tbody>
		<tr>
			<td>
				<img alt="Jiwan Prava Lama,Director General of Department of Food Technology and Quality Control (DFTQC)" src="/userfiles/images/lama.jpg" style="width: 250px; height: 309px;" /></td>
		</tr>
		<tr>
			<td style="text-align: center;">
				<div>
					<strong>Jiwan Prava Lama</strong>,</div>
				<div>
					Director General</div>
				<div>
					Department of Food Technology and Quality Control</div>
			</td>
		</tr>
	</tbody>
</table>
<div>
	<strong>Your department has reported that sub-standard and non-edible foods are freely traded in the market. Does it imply a failure of regulators?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	There are 181 standards for food. Within those standards there are 10 categories with various parameters. If the manufactured food doesn&rsquo;t meet a single parameter, we consider it as a non-parameter. We do report such cases but food products that do not meet every parameter cannot be considered adulterated. Some of them are non-conformant, sub-standardized, and some are adulterated. All of these foods are not non-edible. Some of them can be eaten after applying some safety measures.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	We do not consider it as a failure of regulators as it comes under the food safety chain. The quality of food has to be ensured right from its production to the time it reaches the dining table. The food should be checked during production, packaging and even during consumption as even the wrong way of consumption can decrease its quality.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Your department&rsquo;s report on milk products in Kathmandu has caused a drastic reduction in consumption of processed milk, threatening both the dairy industry and dairy farming. What is your comment?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Our department monitored 14 dairy industries and collected 17 samples of milk. Among them, none had met all the parameters. A minimum of two percent of coliform was found in the milk, which does not meet our standard. In such a situation, certain actions are necessary to minimize such irregularities. We are taking action upon these dairies because of which consumption might have decreased. The government too has formed the National Dairy Development Board in order to reduce the adulteration of milk, thereby increasing its quality.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>You are also the head of Nepal Food Scientists and Technologists Association (NEFOSTA). What can your association do for resolving these issues?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	NEFOSTA can play the role of an agent between the government and the industries and fill the gap of technical manpower in companies. There is a lack of skilled manpower in the dairy business because of which these problems are emerging. Our association can help the government by providing technical manpower to ensure quality food.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>It is alleged that your department&rsquo;s campaign against contaminated milk is discriminatory as it punished Nepali dairies while imported milk was not checked. What is your comment?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Our department verifies the quality of milk within certain standards, norms and policies of the department. There are processes that we have to go through when we are performing each and every task. We are checking the quality of milk only on the basis of coliform now and penalizing those dairies where 0-1000 units of coliforms are found in the milk produced by them. Until now, we have been focusing on some soft punishments but we are moving towards some strict action soon.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Your department is criticized also because it has come down harshly on registered dairies and neglected the unregistered ones, discouraging people from registering their dairies and coming under government tax net. What do you have to say?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	It is the duty of local bodies of the concerned area to look after the registration of industries. Our task is to monitor the registered ones. If the local bodies perform their tasks properly, we could perform our work more effectively. But in our country, concerned sectors are not aware of the responsibilities provided by the law. Though the non-registered dairies don&rsquo;t come under our scope of work, we are planning to investigate even them. We have not been able to go ahead for examining the quality of local dairies due to lack of skilled manpower, but we will be involving ourselves with them gradually.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>Five dairies are sealed by the government for contamination. What is your take on this?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	We have sealed those dairies for the sake of improving the quality of milk. During the survey of dairies, those which failed to meet certain standards were sealed. But we are liberal on this issue as we can give permission to re-open the sealed diaries if they improve their standards. This action is a warning to the dairies to focus on quality production of milk. Kharipati Dairy was also sealed but when it improved its quality, we permitted its operation to resume.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	<strong>What further plans does the department have to increase the quality of food?&nbsp;</strong></div>
<div>
	&nbsp;</div>
<div>
	Presently, we are focusing on quality assurance of milk. There is still so much to be done in the issue of water contamination. After this, we are going into water purification. Sample collection is being done for the inspection of water.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Further, we will be focusing on other domestic products and import-export products. Only goods that meet the legal provisions of Nepal and familiar to consumers here should be imported. We have also discussed with the government to work on the classification of the industries and in maintaining the standard of the Nepali market by developing good management practice in the market to assure Nepali people of quality goods.</div>
<div>
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-07-15',
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			'keywords' => 'the corporate weekly from Nepal, nepali corporate events – news – interviews – reviews, nepali corporate focus, nepali corporate status and news, news from nepali corporate industry, corporate happenings – events – news from nepal',
			'description' => 'Jiwan Prava Lama is the Director General of Department of Food Technology and Quality Control (DFTQC). In an interview with The Corporate’s Suraksha Adhikari, she talked about the present controversy about dairy products in Nepal and highlighted the plans of DFTQC for improving quality of foods in Nepali market',
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		'Article' => array(
			'id' => '1328',
			'article_category_id' => '134',
			'title' => '‘No To Another Merger Right Now’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<table align="right" border="0" cellpadding="1" cellspacing="1">
	<tbody>
		<tr>
			<td>
				<img alt="Tulasi R. Gautam,CEO,MachhapuchchhreBank Limited" height="209" src="https://lh4.googleusercontent.com/-M_eOSiFZvNc/UdqK3UNMT2I/AAAAAAAAA8o/wwW6sZVBcN0/s512/Tulasiu.jpg" width="200" /></td>
		</tr>
		<tr>
			<td style="text-align: center;">
				<b>Tulasi R. Gautam<br />
				</b>CEO<br />
				Machhapuchchhre Bank Limited</td>
		</tr>
	</tbody>
</table>
<p>
	<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
	<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped?&nbsp;</strong></p>
<p>
	It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
	<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank?&nbsp;</strong></p>
<p>
	NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger.&nbsp;</p>
<p>
	<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason?&nbsp;</strong></p>
<p>
	It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank.&nbsp;</p>
<p>
	<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it?&nbsp;</strong></p>
<p>
	Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
	<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming?&nbsp;</strong></p>
<p>
	There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned.&nbsp;</p>
<p>
	<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion?&nbsp;</strong></p>
<p>
	It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
	<strong>After the merger there is generally chaos among the staffs. How did you manage it?&nbsp;</strong></p>
<p>
	When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
	<strong>How do you evaluate the present situation of commercial banks?&nbsp;</strong></p>
<p>
	Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good.&nbsp;</p>
<p>
	<strong>What are the existing problems in the banking sector?&nbsp;</strong></p>
<p>
	The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
	<strong>It is said that banking sector suffers lack of skilled manpower. Is it true?&nbsp;</strong></p>
<p>
	It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well.&nbsp;</p>
<p>
	<strong>These days the operational risks are getting high in banking sector. How do you consider this?&nbsp;</strong></p>
<p>
	It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk.&nbsp;</p>
<p>
	<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this?&nbsp;</strong></p>
<p>
	It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
	<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties?&nbsp;</strong></p>
<p>
	Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
<div>
	 </div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
</table>
<p>
	 </p>',
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			'description' => 'Tulasi R. Gautam, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal.',
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		'Article' => array(
			'id' => '1169',
			'article_category_id' => '134',
			'title' => 'Ajay Shrestha',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size: 20px;"><strong>‘We are securing our banking further, and bringing more people into the system’</strong></span></p>
<p>
	<img align="left" alt="" height="211" src="https://lh3.googleusercontent.com/DAJx8o_ZsL9-ZJvyFsvqbAJYWU3U37zniTin6BXFds8=w147-h207-p-no" width="150" /></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>Ajay Shrestha CEO, ank of Kathmandu (BOK)</strong></p>
<p>
	<strong>Ajay Shrestha is the CEO of Bank of Kathmandu (BOK). In an interview with Sweta Sharma of The Corporate, Shrestha talked about challenges in the banking sector. Excerpts: <br />
	</strong></p>
<p>
	<strong>How have you evaluated BOK’s performance during the last two years? </strong><br />
	The bank’s financials have been stable for the last three years. The bank is also in a reasonable state in terms of profitability.&nbsp;</p>
<p>
	<strong>What are the challenges facing the bank and the entire sector in general? </strong><br />
	As the core market for the banking sector is still not developed in the country, there is a cut-throat competition among banking and financial institutions to get the maximum share of this limited pie. The cost level has also increased with increasing competition. Thus, it is very challenging for a bank to survive in such a competitive market.&nbsp;</p>
<p>
	<strong>The central bank has recently introduced changes to the account opening procedures. What is your take on the changes? </strong><br />
	NRB has recently directed banks to implement a new system, called Know Your Costumer, to keep better records of clients. We welcome the new system. But it definitely has made it difficult for banks to run smoothly.</p>
<p>
	NRB has come up with this new procedure at a time when majority of people still do not have access to banking. But now the procedure has been implemented to some extent. In my view, there are still large numbers of people who need to be encouraged to comply with the new system.</p>
<p>
	<strong>The central bank has said plans to increase the minimum paid up capital requirement for commercial banks to Rs 500 million. What is your bank’s strategy? </strong><br />
	The central bank is yet to decide on the issue. If NRB does increase the paid up capital requirement to Rs 500 million, we will comply with the directive. Earlier, we were successful in meeting the paid up capital requirement of Rs 200 million using our own sources.</p>
<p>
	<strong>The operational risks in banks have been reported to be quite high. How are you coping with that?</strong> <br />
	Operational risks are inherent in the banking sector all over the world. As more and more customers start using banking services, banks have no option but to switch to advanced banking procedures. The risks need to be addressed and minimised. We are complying with all prevailing laws to deal with operational risks. We are continuously reviewing our banking processes to make them more secure.</p>
<p>
	<strong>BOK launched a special scheme to invest in SMEs (small and medium enterprises) and clean energy. How has the experience been so far? </strong><br />
	SMEs are relatively new to Nepali banks. There are is no fixed definition of a small enterprise. It has been around four months since our bank started its SMEs scheme. The process of SME financing is not easy. A lot of research needs to be done before issuing loans.</p>
<p>
	In this regard, we are running financial literacy programmes for prospective SMEs, especially outside the valley. As part of the programme, we are working on building the knowledge base among people to help them understand the banking system. This has helped encourage people to some extent. <br />
	Clean energy is basically associated with environment. We are taking SME and clean energy schemes together.</p>
<p>
	<strong>While most banks have already adopted branchless banking, BOK is still to do so. Why is the bank so slow in adopting new technology? </strong><br />
	Switching to branchless banking requires equipment and investment. We do not rush to adopt new technology as we are very conscious about the outcome a change may bring in. At the same time, we are also into increasing our customer base. Our main mission is to bring more people into the banking system. We are mainly focused on sustaining our bank as a whole.</p>
<p>
	We are planning to provide branchless banking service at 11 locations for now. At the end of the fiscal year, we will be running branchless banking from 25-30 locations. Similarly, we will launch mobile banking soon.</p>
<p>
	<strong>Would you like to say something to your customers? </strong><br />
	We have increased our customer base to 2.5 lakh from 90,000 within three years of time. This is very encouraging for our bank. We want to double the number of customers in the next few years. Our greatest achievement is that we have 50 outlets. We also have 57 ATM counters. We have been successful in meeting our targets till now.<br />
	<br />
	 </p>',
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			'created' => '2013-06-28',
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			'id' => '1140',
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			'title' => 'Swagat Shrestha',
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			'content' => '<p>
	<strong>‘Need fusing science and technology with business’<br />
	</strong><br />
	Swagat Shrestha is the Chairperson of Higher Secondary School’s Association of Nepal’s Kathmandu Chapter (HISSAN KTM). Sweta Sharma of The Corporate Weekly talked with Shrestha about overall education system of Nepal, its reforms, problems and challenges. Excerpts: <br />
	<br />
	<br />
	<strong>How do you evaluate the present education system of Nepal? <br />
	</strong><br />
	Education system of Nepal has improved in a satisfactory way. There have been improvements in courses and vocational and business education are introduced in government schools and colleges. <br />
	<br />
	<br />
	<strong>Comparing with the last year, SLC pass percentage is quite low this year. What do you think might be the reason behind it? <br />
	</strong><br />
	The government has allocated 17 per cent of budget for education. Looking at this, the SLC pass percentage is quite discouraging. This is an issue to be considered seriously. In cities like Kathmandu, we do have 80-90 pass percentages. But the government schools mainly those of out of valley have only 10- 12 pass percentage. Earlier, many schools openly helped students cheat in SLC exams. This year, the examination was very strict, and the papers were also evaluated strictly which might have caused this decline. <br />
	<br />
	<br />
	<strong>One of Nepal’s Millennium Development Goals is to have 100 per cent enrollment in primary school. To what extent do you think it would be possible? <br />
	</strong><br />
	These days, people are quite aware of the importance of education and literacy. Especially in villages, more and more people are being aware about education and we must thank political parties for this as they keep visiting villages for various awareness programmes. This has led to expect some good changes in education sector and I do think there is the possibility of educating a huge portion of the population. <br />
	<br />
	<br />
	<strong>What major reforms do you think are necessary for Nepal’s education system? <br />
	</strong><br />
	The education system of Nepal is city-oriented as must of educational institutions are located in the major cities. Private sector is basically surviving on its own and they have the inclination towards staying where they see good business possibility. It is government’s responsibility to provide education free of cost but instead there is impractical policy that requires educational institutions to pay VAT like tax to the government. <br />
	<br />
	But above all, the major problem of Nepal is political instability and it has affected almost every sector. Every sector is politicized and education sector is also affected largely. Also, we are copying the foreign curriculum and that cannot always be relevant for us. The education system should rather be based on our country’s need and demand. People need to set an example by contributing in Nepal so that the future generations too could be encouraged to stay in Nepal. And if the government educational institutions could provide better education, then the private ones can gradually phase out. <br />
	<br />
	<br />
	<strong>Government has failed in creating satisfactory long term education policies. What are your comments on this? <br />
	</strong><br />
	This is all due to unstable government. The frequent change in government is affecting policies to sustain in the long term. Reforms, policies, rules and regulations get changed with the change of government. Even though the policies are good, it definitely will be changed with new government, and it is so frequent. Still we can hope for positive changes in educational sector as there are possibilities. <br />
	<br />
	<br />
	<strong>What is your suggestion to keep education sector free from political intervention? <br />
	</strong><br />
	The unhealthy competition among major political parties has brought this problem of intervention in every sector request all the major political parties to leave at least the schools free from politics. The political parties should point out the weakness of private educational institutions and we are ready to do our best to overcome those weaknesses. This will help to run the education sector more peacefully. <br />
	<br />
	<br />
	<strong>Students seem to be more attracted towards A-level courses in the recent days. Why is +2 education gradually losing the attraction? <br />
	</strong><br />
	I disagree to this because more number of students are still attracted to +2 colleges. A-level course is of international standard and is also quite expensive. I think A-level degree is not suitable for Nepal. The majority of the students are in +2 colleges rathen than in A-level colleges. Yes, I do agree that the courses are quite advanced in A-level, but it also has its own problems. <br />
	<br />
	<br />
	<strong>It is quite confusing to choose good educational institutions. What do you suggest to the students and guardians? <br />
	</strong><br />
	Distance matters a lot, so it is better to choose those institutions which are quite near to your residence as it would consume less time. There should be enough information about the people who are running the institutions. Educationists can run the institutions well and they will be more inclined towards providing better education. Results of past few years should also be taken into consideration. In addition, the institutions should possess basic infrastructure and facilities where students could find an environment to boost their abilities. If these parameters are considered, it will be relatively easier to select a good school or college. <br />
	<br />
	<br />
	<strong>What unique characteristics do you think your institution Kathmandu Valley College (KVC) possesses when compared to the other colleges? <br />
	</strong><br />
	We have daily evaluation system where every student is supposed to appear in test at the end of the day. In this regard, I can say that our evaluation system is unique. We organize seminars and presentations every Friday to boost the students’ communication and presentation skills. We are also focused on promoting our culture. We also provide ‘Joyful Parenting Training’ where parents and students can interact with each other properly to understand each other’s point of view. We also provide job placement trainings to the students. Broadly speaking, we provide our students with reality based education. <br />
	<br />
	<br />
	<strong>What new programs are you going to introduce in near future which you think will be beneficial to boost the education system of Nepal? </strong><br />
	<br />
	We are going to provide professional computer training to students and we will also certify it. In coming year, we are adding BBA and MBA level according to the demand of students and the market. But our college is more focused on science and technology which is very important for Nepal’s development. We need fusing science and technology with business. This will help to increase the value of products and it ultimately will help to boost Nepal’s economy as well. It also will make our education system more advanced.<br />
	 </p>',
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FOREX

Currency	Unit	Buy	Sell
U.S. Dollar	1	121.23	121.83
European Euro	1	131.65	132.31
UK Pound Sterling	1	142.47	143.18
Swiss Franc	1	124.29	124.90
Australian Dollar	1	71.69	72.05
Canadian Dollar	1	83.90	84.32
Japanese Yen	10	10.94	11.00
Chinese Yuan	1	17.17	17.26
Saudi Arabian Riyal	1	32.27	32.43
UAE Dirham	1	33.01	33.17
Malaysian Ringgit	1	27.36	27.50
South Korean Won	100	9.77	9.82

Update: 2020-03-25 | Source: Nepal Rastra Bank (NRB)

Bullion

Fine Gold	1 tola	77000.00
Tejabi Gold	1 tola	76700.00
Silver	1 tola	720.00

Update : 2020-03-25

Source: Federation of Nepal Gold and Silver Dealers' Association

Petroleum

Petrol	1 Liter	106.00
Diesel	1 Liter	95.00
Kerosene	1 Liter	95.00
LP Gas	1 Cylinder	1375.00