Govt To Sign MoU For Construction Of Airports

Nov 30, -0001 0 37 seconds to read

…

ADB To Spend Rs 7 Billion For TIA Upgradation

Nov 30, -0001 0 2 minutes 16 seconds to read

…

Oman Air Winner Of Middle East’s Leading Airline Economy Class

Nov 30, -0001 0 55 seconds to read

…

‘We Believe In Providing Solution Which Is Safe, Comfortable And Sustainable’

Nov 30, -0001 0 4 minutes 40 seconds to read

…

‘We Are Looking For A Long Term Relationship With The Nepali Market’

Nov 30, -0001 0 2 minutes 8 seconds to read

…

‘We Are Expanding Business In Developing Countries’

Nov 30, -0001 0 2 minutes 28 seconds to read

…

‘We Are Confident About The Performance Of Our Products’

Nov 30, -0001 0 2 minutes 52 seconds to read

…

‘We Hope The Market For Our Business Grows Fast In Nepal’

Nov 30, -0001 0 3 minutes 2 seconds to read

…

Nepali Banking In Transition Through Mergers And IPOs

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Century Of Indian Cinema: The South Asian Message

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Aptech Group: Focusing On IT Education

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No Laughing Matter

The Sweet Rewards of Power

By Madan Lamsal

. . .
read more »

NEPSE

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			'id' => '1085',
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			'title' => 'Govt To Sign MoU For Construction Of Airports',
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			'content' => '<p>
	Nepal is geared up to sign a Memorandum of Understanding (MoU) with concerned companies for the construction of four airports. According to Minister of Ministry of Culture, Tourism and Civil Aviation Ram Kumar Shrestha, the MoU will be signed within mid-December this year. Shrestha said so in a programme organized by Media International on May 18th.&nbsp;</p>
<p>
	He informed that MoU will facilitate the construction of second international airport in Nijgadh, Pokhara Regional International Airport, Gautam Buddha Regional International Airport in Bhairahawa and extensive improvement of Tribhuvan International Airport.&nbsp;</p>
<p>
	Shrestha also said that he will be playing an instrumental role in solving the problems of Nepal Tourism Board, including the appointment of CEO in the Board.&nbsp;</p>',
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			'content' => '<p>
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<p>
	Asian Development Bank (ADB) will be spending Rs 7 billion for the improvement of Tribhuvan International Airport (TIA). The major portion of the amount will be spent in the development of infrastructures. According to Punya Raj Shakya, Project Director of Tribhuvan International Airport Improvement Project, Rs 5.25 billion is allocated for the physical infrastructure development. “The work is already in the process with a plan to complete it within three years,” said Shakya. Under the programme, airport’s runway will be widened by 300 meters, the regular work procedure of Civil Aviation Authority of Nepal will be divided and passenger’s waiting area and parking area will be increased by double. The amount will also be spent in installing Visual Approach Guidance System in Lukla airport to facilitate landing. The system will be installed in Tribhuvan International Airport and Lukla airport by December.</p>
<p>
	TIA currently has only two wide bodies and seven narrow bodies parking that can accommodate only nine aircrafts at once. This has been causing continuous delay in international flights and expansion of the parking area was needed. Under the prograame, 55 CCTVs, three X-ray machines will also be added and the lighting system will also be improved. The construction of internal terminal building is also in the process which will cost around 100 million rupees. &nbsp;Out of ADB’s total assistance, USD0 70 million is provided as loan and USD 10 million as grant.&nbsp;</p>
<p>
	<strong><img alt="Tribhuvan International Airport" height="163" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/civil_aviation_june2013_TIA_adb(1).jpg" style="margin: 0 10px 0 0;" width="595" /><br />
	</strong></p>
<p>
	<strong>A Glance at TIA Progress</strong></p>
<div>
	<p>
		<strong>1949</strong> – Nepal started its first aircraft with the operation of single- engine Bonanza aircraft.</p>
	<p>
		<strong>1956</strong>- King Mahendra renamed Gauchar Airport as Tribhuvan Airport.</p>
	<p>
		<strong>1964</strong>- Tribhuvan Airport again renamed as Tribhuvan International Airport.</p>
	<p>
		<strong>1967</strong>- The runway was extended from 3,750 feet long to 6,600 feet and the first jet aircraft Boeing 707 flew</p>
	<p>
		<strong>1968</strong>- With Thai Air International jet, the regular flight started fleeing</p>
	<p>
		<strong>1972</strong>- ATC services taken over by Nepalese personnel from Indian technicians</p>
	<p>
		<strong>1975</strong>- Runway extended to 10,000 feet long</p>
	<p>
		<strong>1989</strong>- Boeing 747 started and new ITB development process completed</p>
	<p>
		<strong>1995</strong>- Domestic terminal building and apron area expansion</p>
	<p>
		<strong>2002</strong>- Establishment of new Cargo building and expansion of ITB&nbsp;</p>
	<p>
		<strong>2009</strong>- International parking and domestic taxi way extension&nbsp;</p>
	<p>
		<strong>2010</strong>- TIA golden gate was changed to its new look. &nbsp; &nbsp;</p>
	<p>
		 </p>
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<p>
	Oman Air, the national carrier of Oman has been announced as the winner of the ’Middle East’s Leading Airline Economy Class’ category at the World Travel Awards 2013.&nbsp;</p>
<p>
	The awards that recognise the performance the airline has demonstrated over the last 12 months are voted for by travel and tourism professionals worldwide. Oman Air’s Chief Executive Officer Wayne Pearce attended the ceremony held on 5th May at Le Royal Meridien Beach Resort and Spa in Dubai.</p>
<p>
	“Oman Air is honoured to have won the award in this highly competitive category, and against such worthy competitors on the eve of the launch of ATM 2013,” said Pearce.&nbsp;</p>
<p>
	Oman Air has won many international industry award in recognition of its recent developments, including the introduction of new aircraft, the inauguration of a range of new destinations, the unveiling of spacious and luxurious aircraft interiors – including its A330 business class seat, named as the World’s Best at the Skytrax 2012 World Airline Awards - and the launch of state-of-the-art in-flight entertainment systems.&nbsp;</p>
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			'description' => 'Oman Air, the national carrier of Oman has been announced as the winner of the ’Middle East’s Leading Airline Economy Class’ category at the World Travel Awards 2013.',
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			'article_category_id' => '31',
			'title' => '‘We Believe In Providing Solution Which Is Safe, Comfortable And Sustainable’',
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	 </p>
<p>
	Sanjeev Seth is the General Manager and Sales Leader for Trane Commercial Businesses in SAARC Markets that form part of the Climate Solutions sector at Ingersoll Rand. Trane is Ingersoll Rand’s strategic brand and world leader in Heating, Ventilating, Air-Conditioning and Refrigeration (HVACR) industries that serve commercial, institutional, hospitality, industrial and pharma market. Seth is responsible for driving innovation and growth of Trane business by understanding customers’ needs and developing solutions to meet customer expectations in SAARC countries. Siromani Dhungana of New Business Age talked with him during his recent visit to Nepal.</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>What is the purpose of your visit?</strong></p>
<p>
	Trane is one of the leading brand in heating ventilation and air conditioning and we are now trying to increase our presence in Nepal market and we appointed MAW Engineering Pvt. Ltd as business partner for the entire Nepal. We see Nepal as a very strategic market, it’s definitely grow substantial for near future. Trane is a brand which caters to HVAC system, service and solutions for both commercial and industrial segment. We see a lot of opportunity for providing air conditioning solution in this market. So we are here to meet customer and establish relationship and engagement with the customer.</p>
<p>
	<strong>What sort of strategies has Trane adopted to target the Nepali market?</strong></p>
<p>
	As we know, energy is becoming more and more expensive and it is important to have solutions which are environmentally efficient and sustainable. We believe in providing solution which are safe, comfortable and sustainable. The products which we are launching here are going to be very energy efficient and use gases which are environmental friendly with latest technology.</p>
<p>
	<strong>With a growing interest of customers in appliances such as AC and refrigeration, there must also be competition in the market. How has Trane made sure that its market share does not get reduced by cheaper competitors?</strong></p>
<p>
	There are a lot of choices available to customers and Trane believes in partnering with customers to find the right choice. We have wide range of products available from small conditioners to huge centrifugal chillers. The product portfolio Trane manufactures, is able to meet diverse needs of the customers. They are highly energy efficient and reliable. And there is a very strong service network of Trane service technicians. We partner with the customer to provide the right kind of solutions.</p>
<p>
	<strong>With new ideas coming in each day for every sector of technology, how do you brainstorm ideas for a new and refined product?</strong></p>
<p>
	It is the regular and continuous process. We continue to innovate new products and technology. In India we have our research and development centres for this.&nbsp;</p>
<p>
	<strong>How do you see market of air conditioner in South Asia and especially in Nepal?</strong></p>
<p>
	The economy in Nepal is definitely grown and there is a need for providing the right kind of solution for customers in Nepal. The customers in Nepal will require more solution from Trane. Trane is very bullish about the Nepal market. Our partner here, MAW, is in the right position to offer the right products and solution to market.</p>
<p>
	<strong>Would you please tell us about the major unique features of the Trane brand?</strong></p>
<p>
	This year Trane has completed its hundred years. Now we are committed as well as geared up for the next century. Our products and services are unique in the sense that they are able to provide energy efficient solutions, are sustainable and some of the major installation in the world use Trane products.&nbsp;</p>
<p>
	We also have building automation systems which can integrate the entire equipment of the building. Overall we have wide portfolio which meets the diverse needs of customers.</p>
<p>
	<strong>What are your major branding strategies?</strong></p>
<p>
	Today the customers are looking for not just the products. It should be backed by proper services as well. The product itself should be reliable and of good quality. Trane is very well established in commercial segments of the markets and is recognized as a very strong and reliable brand. It continue to focus on the same values of providing reliable and high quality products and it will be backed by strong after sale services with our partner here, MAW, and we also hope that our new products and innovations will address the need of the customers.</p>
<p>
	<strong>What is the current market share of your products in Nepali market?</strong></p>
<p>
	We have been working with a lot of corporate house here since a long time and we see here a lot of opportunity and we are bullish about the future.</p>
<p>
	<strong>Where do you want to see Trane brands in Nepali market five years from now?</strong></p>
<p>
	We want to see Trane being recognized as a brand which can provide energy efficient and reliable and high quality products and entire systems and solutions of the costumers’ needs. And it should be a recognized as a brand which can actually help the customers on saving energy also. And Nepal is already struggling due to power outage. So any product or system which can save energy will help address the need of customers here. And our focus is energy efficient products at&nbsp;<span style="font-size: 12px;">reasonable price.</span></p>
<p>
	<span style="font-size: 12px;"><br />
	</span></p>',
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			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Ramesh Palagiri, managing director and CEO of Wirtgen India, was recently in Nepal to officially launch Hamm soil compactors in the Nepali market. Hamm products are manufactured in India, China and Germany using German technology by Wirtgen Group. Siromani Dhungana of New Business Age talked with him on the business prospects of Hamm soil compactors in Nepal.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>What are the products you are currently supplying in Nepal?</strong></p>
<p>
	We are supplying Hamm soil compactors. By the end of the year, we are coming up with a tandem roller. Because most of the roads are on hilly terrain, there is lot of hope for road recycling in Nepal and we have a very good solution for that: technology called cold recycling (very popular worldwide.) By this technology, roads can be rehabilitated.</p>
<p>
	<strong>What prospects do you see for your business in Nepal?</strong></p>
<p>
	In the last few years, the development activities in Nepal have gone down. So there are lots of possibilities for infrastructure to come up. We expect the market to grow in coming years. As of now, the market size is roughly 35-40 machines per year. We are looking for a long term relationship with the Nepali market.&nbsp;</p>
<p>
	<strong>Why to choose your products?</strong></p>
<p>
	We have 100 years of experience. We are leaders in road technologies, both for constructing new roads and for rehabilitating the existing ones. We have premium products in economic range. The consumer gets best value for money with our products. We have patented a three point articulation engine with clear and simple information displayed. So even a operator without much experience can handle it. It’s easy in maintenance and high in productivity.</p>
<p>
	<strong>How do you see the South Asian market?</strong></p>
<p>
	The South Asian market is vital for us. There is almost the same level of opportunity for us with similar competition. The market is growing and that is important too. Our target is to become market leaders.</p>
<p>
	<strong>What is the level of competition you face in Nepal?</strong></p>
<p>
	The level of competition is the same we face in India. There is a throat-cutting level of competition. We are selling premium products. Our market share is 35 percent now, our target is 40-45 percent by the end of next year. We are also focusing in good after sale services and spare parts to get close to the customer.</p>',
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			'description' => 'Ramesh Palagiri, managing director and CEO of Wirtgen India, was recently in Nepal to officially launch Hamm soil compactors in the Nepali market. Hamm products are manufactured in India, China and Germany using German technology by Wirtgen Group.',
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			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Hideto Kawamura, Department Head, Overseas Sales Division of Yamaha Motor Pvt Ltd, India recently visited Nepal to officially launch Yamaha Ray, a new scooter from Yamaha. &nbsp;In his 10 years of career in Yamaha Motors, Kawamura has worked in various departments ranging from services to sales and marketing. He joined the company in 2002 as the In-charge of CKD export operation and marketing support for Indonesian Market products. He moved to India in 2012 and has been overseeing export from India. In an interview with New Business Age, Kawamura shared the expansion plan of his company in Nepal.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>Would you please describe the Ray Scooter that you just launched?&nbsp;</strong></p>
<p>
	The Ray Scooter is specially made for women. The height of the seat is lower than the competitors. Overall, it is very comfortable for female riders. &nbsp;On the other hand, the mileage of the Ray is the best among the scooters segment available in Nepal. And, it has better pick up. The scooter is good enough to ride for two people and it goes smoothly while climbing the slopes.</p>
<p>
	<strong>&nbsp;How do you find the demand of your product in Nepal?&nbsp;</strong></p>
<p>
	We see a great market for scooters in Nepal. Though our product is new in Nepali market compared to other products, we are confident that our product will be popular among the riders. The scooter market in Nepal is basically owned by other models like Dio from Honda. But our product is competitive enough to take on them. Ray scooter would win customer’s trust in every aspect; style, pick up, mileage and overall. I believe we will own around 20 per cent market share in Nepal in 2013/2014. We will try our best to achieve that.&nbsp;</p>
<p>
	<strong>What are the other products that you are planning to launch in Nepal?&nbsp;</strong></p>
<p>
	We are considering launching variation models of Ray scooter in Nepal in near future. But I cannot say more about it right now.</p>
<p>
	<strong>How are you expanding your business internationally?&nbsp;</strong></p>
<p>
	Today, Yamaha sells around 7 million units of two-wheelers a year all over the world including in Japan, USA and European countries. We are also expanding our business in developing countries like Nepal. &nbsp;Now, we have the largest market shares in South East Asia mainly in Indonesia, Thailand and Vietnam. And we are expanding our business in African countries.&nbsp;</p>
<p>
	<strong>How do you see the prospects of your business in Nepal?&nbsp;</strong></p>
<p>
	Until 2012 December, we sold around 12,000 motorcycles in Nepal. It will expand much more and our sales could see up to 40 per cent growth compared to previous year. We have a plan to launch another variation of scooter that will also contribute to the growth.&nbsp;</p>
<div>
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			'article_category_id' => '31',
			'title' => '‘We Are Confident About The Performance Of Our Products’',
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			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Hiroaki Ashizawa, Director of Mitsubishi Electric India Pvt. Ltd is also heading Living Environment Air condition division in India. Founded in 1921, Mitsubishi Electric is a leading company in manufacturing and sales of electrical and electronic products. Hiroaki has handled many international markets including USA, Europe and Asia Market and has 35 years of experience in HVAC. In an interview with New Business Age, Hiraoki shared about his business in Nepali market.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>Could you please highlight the reasons of your visit?</strong></p>
<p>
	I came here for a launching ceremony of our Air conditioner products in Kathmandu. Since I am supposed to assist and support the business in Nepal, I also wanted to visit Airtech, our business partner here in Nepal.&nbsp;</p>
<p>
	<strong>What are the products that you just launched?</strong></p>
<p>
	Recently, we launched two air conditioning series namely Mr. Slim Series and CITY MULTI VRF series in Nepali market. &nbsp;Mr. Slim is a series of room air conditioners for private houses and small offices while City Multi VRF Series is for commercial purpose suitable to corporate offices, banks, hospitals, hotels, shopping complexes, villas, apartments, etc. Both these series are widely accepted in global market. With these full ranges of world class products we ensure that Nepalese customers would get the best AC products.</p>
<p>
	<strong>Can you tell us the major unique features of the Mitsubishi Electric brand?</strong></p>
<p>
	We focus on Mitsubishi Electric Quality promising the best experience in our products, services, partnership and people. Apart from premium quality, energy efficiency, usage of environment friendly green refrigerant R-410A for our product range and our service quality are key features that ensure standards matching to the lifestyle with lesser environmental impact.</p>
<p>
	<strong>How are you expanding your products in the international market?</strong></p>
<p>
	We are one of the leading air conditioner companies in global market including South East Asia. We are now growing rapidly mainly in the countries like India, Nepal, Pakistan and Bangladesh. We are already market leaders in our inverter segment in USA, UK, Spain, etc. We also enjoy leadership status in many Asian countries including Thailand and Myanmar.</p>
<p>
	<strong>How do you see the prospects of your business in Nepal?</strong></p>
<p>
	We launched our products in Nepal nearly a year back. With these best products, we are aiming to be the market leader by the year 2015. Seeing the price competition, I believe Nepal is one of the hardest markets in South Asia. It seems very tough but still we are ready to fight and grab the market. We are confident about the performance of our products and I am sure the valued customers in Nepal would pay some premium for our quality products.</p>
<p>
	<strong>How can Nepal get benefit from these products?</strong></p>
<p>
	We sell DC inverter type Air Conditioners with after sales services in Nepali market. As DC inverter type Air Conditioner is energy saving product, it could be beneficial for reduction of energy consumption ensuring the lower operating cost.&nbsp;</p>
<p>
	<strong>What is your further plan regarding your business in Nepal?</strong></p>
<p>
	We are planning to launch the Hot Water Generating system- a highly efficient and eco friendly product especially suited for hotel business in Nepal. &nbsp;</p>',
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			'created' => '2013-06-08',
			'modified' => '2013-06-08',
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		'Article' => array(
			'id' => '1078',
			'article_category_id' => '31',
			'title' => '‘We Hope The Market For Our Business Grows Fast In Nepal’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Cyrus Khambata is the Chief Executive Officer at CDSL Ventures Ltd (CVL). &nbsp;He joined Central Depository Services Limited (CDSL) in 1999, the date of CDSL’s operation and currently offering his services as an Executive Vice President. CDSL is a leading securities depository in India. &nbsp;Previously, he served Bank of India as a Chief Manager for 20 years. Sushila Budhathoki of New Business Age talked with Khambata during his recent Nepal visit.&nbsp;</p>
<p>
	<strong>Excerpts:&nbsp;</strong></p>
<p>
	<strong>What brings you to Nepal this time?</strong></p>
<p>
	I am here for the inauguration of clearing and settlement system started by Central Depository &amp; Settlement Corporation (CDSC). I have been putting my effort to start the system for three years. I am here for technical assistance.&nbsp;</p>
<p>
	<strong>So, you had a meeting with brokers also?</strong></p>
<p>
	Yes, they had certain questions like how DEMAT operates, how the risks can be minimised etc. And we had to explain them.</p>
<p>
	<strong>Now the CDSC has come into full operation. How will it support the capital market of Nepal?&nbsp;</strong></p>
<p>
	In the physical settlement process, shares traded in the stock exchange have to be transferred manually. That takes a long time to change the ownership. With Dematerialisation (DEMAT), the shares get transferred to the respective stakeholders’ account immediately on the trading day so they can use it during emergency also. &nbsp;</p>
<p>
	<strong style="font-size: 12px;">How do you see the prospects of your business in Nepal?&nbsp;</strong></p>
<p>
	We hope the market for our business grows fast in Nepal. We will target big companies and have started the DEMAT services offered to the shareholders. So, that it would grow rapidly. People who are trading shares will prefer DEMAT because it is less time consuming. But the people who are not trading will take time to familiarize with DEMAT.</p>
<p>
	<strong style="font-size: 12px;">What are other infrastructures necessary for Nepali capital market?&nbsp;</strong></p>
<p>
	In the capital market, there are three large infrastructure providers. One is regulator who does a lot of monitoring, second is the exchange which offers trading facilities and the third one is depository which sets up the depository participants to cover the entire population. &nbsp;In India, there are 18, 000 depository centers covering 25,000 pin codes out of 27,000 pin codes in the country. State Bank of India provides DEMAT facilities from its 3000 branches among 10 -12 thousand branches.</p>
<p>
	So, like SBI, Bank of Kathmandu also can be the center for providing DEMAT facilities. It can offer this service from its 500 branches which will cover the entire country.</p>
<p>
	<strong style="font-size: 12px;">What are your suggestions to CDSC for providing services other than normal settlements?</strong></p>
<p>
	It can provide numerous services if permitted. One is e-voting service. It would help the shareholders to participate in the operation of the company that they own. For example, they can even electronically vote for the AGM even if they are not physically present to attend the programme.&nbsp;</p>
<p>
	Similarly, they can provide KYC (Know Your Client) services. To open a DEMAT account, you have to comply to the KYC rules. It is required by banks, insurance companies and telecom operators to name a few. All the documents need not be collected from the client in each and every step every time he/she transacts somewhere. So, CDSC can become a bank for KYC document and the client can just file his details once and for all for any organisation.&nbsp;</p>',
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			'description' => 'Cyrus Khambata is the Chief Executive Officer at CDSL Ventures Ltd (CVL).  He joined Central Depository Services Limited (CDSL) in 1999, the date of CDSL’s operation and currently offering his services as an Executive Vice President.',
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		'Article' => array(
			'id' => '1077',
			'article_category_id' => '40',
			'title' => 'Nepali Banking In Transition Through Mergers And IPOs',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<strong>By Siromani Dhungana (with inputs from Yagya Banjade and Rashesh Vaidya)</strong></p>
<p>
	<em>As per the NRB’s latest data, the country has 31 commercial banks, 87 development banks, 80 financial companies and 21 micro-finance companies. The number shows that there is tough competition among banks and financial institutions (BFIs) forcing them to face multiple challenges. The major one is surely the capital base. The introduction of merger policy has created opportunities for banks to increase their capital base. At the same time, the BFIs are also going ahead with Initial Public Offerings (IPOs) to increase their capital base. In this issue, New Business Age tries to present an overview of how the Nepali banking sector is going about with mergers and IPOs.</em></p>
<p>
	The trend of announcing merger plans by the banks and financial institutions (BFIs) has gathered pace in recent months. According to Nepal Rastra Bank, a total of 28 banks and financial institutions (BFIs) have already merged with each other reducing the total number of BFIs by 15. Similarly, some 24 BFIs have already received Letter of Intent (LoI) to be merged with one other, and upon completion of this process, the total number of BFIs will reduce by another 14. And, other 12 BFIs have applied for the LoI. Once these too complete the process, the number of BFIs will be reduced by additional 5.</p>
<p>
	This shows that in spite of several weaknesses to implement monetary policy, Nepal Rastra Bank (NRB) has become quite successful in implementing its merger policy. Earlier, the central bank had announced packages of rebates, discounts, waivers and facilities to the BFIs opting for mergers. But now, the bankers themselves believe that merger has become compulsory for many banks which are suffering from the problem of low capital base and limited geographical coverage.</p>
<p>
	Similarly, a wave of Initial Public Offerings (IPOs) has started among the new BFIs. In the last Nepali calendar year that ended on mid-April, 20 BFIs issued IPOs, issuing shares worth Rs 5.6 billion. More offering such IPOs are in the pipeline. Though BFIs can increase their capital base also through Further Public Offering (FPO) of their shares, very few of them have opted for this route.</p>
<p>
	<strong>Need for Merger</strong></p>
<p>
	Apparently, the universal objectives of the merger or acquisition are to consolidate the capital, reduce operational expenses, expand business and maximise profits.&nbsp;</p>
<p>
	However, in our case, mergers of three distinct natures now seem to be in the offing.&nbsp;</p>
<p>
	Firstly, relatively large institutions are planning to create a larger capital base so they could compete with global players who could potentially begin their operations here owing to WTO arrangements.&nbsp;</p>
<p>
	The second type of merger would be compulsive of sorts as the NRB has asked the BFIs belonging to the same business house to integrate without any “ifs and buts’’.&nbsp;</p>
<p>
	The third types are those who fear the complete meltdown if they fail to merge soon to consolidate resources, introduce corporate best practices and reduce expenses.&nbsp;</p>
<p>
	Consolidation is becoming increasingly necessary as banks are struggling to give returns to their shareholders. Almost all BFIs are eyeing mergers, and the number of BFIs will come down notably in the next three years.</p>
<p>
	However, bankers say more incentives are needed to speed up mergers, particularly between commercial banks. For example, they have been demanding decrease in corporate income tax to 20 percent from the current 30 percent for a merged BFI.</p>
<p>
	As there is no environment for increasing capital by issuing rights shares and bonus shares as that will not be enough to raise capital to the required level, finance companies have no other&nbsp;option than to go for a merger. Many finance companies have thought that’s it’s better to opt for a merger than to face action from the central bank for failing to increase the capital to the required level next year.</p>
<p>
	Also the shaken public confidence on towards banking institutions due to recent problems in the banking sector and their inability to give proper returns to their shareholders, has forced the BFIs to increasingly lean towards consolidation.&nbsp;</p>
<p>
	Consolidation is necessary also to increase the paid-up capital since the possibility to increase of paid up capital by issuing rights shares is very slim. Moreover, the size of loans being demanded by single borrowers has been increasing in recent years. So, BFIs having low paid-up capital cannot fulfill such demand.&nbsp;</p>
<p>
	Similarly, merger becomes an urgent need also because due to the terms agreed by Nepal while gaining membership of World Trade Organisation (WTO), financail services sector is open for foreign investors beginning 2010. So, foreign banks can open their branch in nepal. If big foreign banks open their branches in Nepal, the Nepali banks with small capital base may not be competitive.</p>
<p>
	<strong style="font-size: 12px;"><span style="font-size: 12px;"><br />
	</span></strong></p>
<p>
	<strong style="font-size: 12px;"><span style="font-size: 12px;">The Journey of BFIs Mergers in Nepal So Far</span></strong></p>
<p>
	The journey of merger of Nepali banks began nine years back. In 2004, Laxmi Bank merged into it Himalayan Saving and Finance Company (HISEF), and it was done according to the broad provisions of Company Act and Bank and Financial Institution Act (BAFIA). The then Narayani Finance and National Finance had merged to become Narayani National Finance following the same Acts. Similarly, Himchuli Development Bank and Birgunj Finance merged and became H &amp; B Development Bank aalso merged under the same act.</p>
<p>
	That experience highlighted a need for special rules to govern this process. But was only in May 2011 that Nepal Rastra Bank came up with a special rule to facilitate mergers between BFIs.</p>
<p>
	When Nepal Rastra Bank (NRB) introduced the Merger By-laws in May 2011, many had still doubted whether Nepali banks and financial institutions (BFIs) would go for mergers as the concept was a relatively new for the country. &nbsp;That doubt seemed valid for some time. But soon a merger spree started among BFIs. Birgunj Finance and Himchuli Bikas Bank sought LoI from NRB in 2004 and completed their merger the same year becoming H&amp;B Development Bank. The process gained memorandum after that. (See box for the list of BFIs merged so far.)</p>
<p>
	<img alt="Nepal Rastra Bank" height="345" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_nrb.jpg" style="margin: 0 10px 0 0;" width="595" /></p>
<p>
	As the list on the box shows, most of the BFIs that have chosen to merge are development banks and finance companies merging with another institution of same category or with a commercial bank. However, latelycommercial banks too have started merging with another commercial bank. The recent such example is the merger process started by Bank of Asia Nepal and Nepal Industrial and Commercial Bank Limited.</p>
<p>
	<strong>Major Provisions of Merger By-Law</strong></p>
<ol>
	<li>
		<strong>‘A’, ‘B’ and ‘C’ class financial institutions can merge into each other. ‘D’ class FI can merge with another ‘D’ class FI only.<br />
		</strong></li>
	<li>
		<strong>FIs that want to merge should form a separate merger committee and sign Memorandum of Understanding (MoU).<br />
		</strong></li>
	<li>
		<strong>The due process including MoU should be completed before applying to the Nepal Rastra Bank (NRB)for Letter of Intent (LoI). NRB should hold a meeting within 15 days of receiving LoI application.<br />
		</strong></li>
	<li>
		<strong>NRB decides whether to issue LoI or not after conducting discussions and detailed study of concerned institutions.<br />
		</strong></li>
	<li>
		<strong>Due Diligence Audit should complete within six months of receiving LoI from the central bank.<br />
		</strong></li>
	<li>
		<strong>The detailed factual report comprising assets and liabilities of concerned institutions should be submitted to the NRB.<br />
		</strong></li>
	<li>
		<strong>Copy of the decision regarding name, address and share ratio of concerned financial institutions should be submitted to NRB.<br />
		</strong></li>
	<li>
		<strong>Action plan of concerned financial institution including date of operation after merger process is completed should be submitted to NRB.<br />
		</strong></li>
	<li>
		<strong><span style="font-size: 12px;">Other documents as prescribed by the NRB should be submitted to NRB.</span><br />
		</strong></li>
</ol>
<p>
	<strong><span style="font-size: 12px;">NRB can ask for merger if the following situation prevails:</span></strong></p>
<ol>
	<li>
		<strong>In case representatives of a family, business group, firm or company are found assuming posts in the boards of directors of two or more BFIs and/or their financial conditions remain unhealthy.</strong></li>
	<li>
		<strong>If the non-performing loans (NPL) exceeded 5 percent of the total loan portfolio for 3 consecutive years.&nbsp;</strong></li>
	<li>
		<strong>Increase in systematic risk (i.e. in a situation when a BFI seems likely to fail to meet liabilities).</strong></li>
	<li>
		<strong>If independent operation of a BFI is causing negative impact on the banking system.</strong></li>
	<li>
		<strong>If a BFI faces prompt corrective action (PCA) for three times or more.</strong></li>
	<li>
		<strong>If NRB finds that merger of systemically important BFIs will strengthen the entire banking system.</strong></li>
</ol>
<p>
	<strong>Facilities for Merger</strong></p>
<p>
	The new regulations have pledged relaxation on provisions for capital structure, shareholding limit for promoters, credit-deposit ratio, borrowings limit for promoters and deprived sector lending, among others.</p>
<p>
	If the merger causes increase in the shareholding percentage of any promoter beyond the stipulated limit, such promoters get five years time to bring down their stake within the limit.</p>
<p>
	Likewise, merged institutions are allowed additional three years to bring CD ratio down to the of 80 percent. Similarly, promoters get additional three years to bring their borrowing (loans) down to less than 50 percent of the total shares they hold in the merged BFI.</p>
<p>
	In a bid to lure BFIs to merger, the central bank has even promised a discount in refinance rate by one percentage point to the merged institution. It has also offered to lower penal rate on standing liquidity facility by half for three years in case two or more BFIs merged into one.</p>
<p>
	The central bank has also opened upgrading of &nbsp;fianancial institutions relaxed the restriction on upgrading of a BFI to encourage merger. A BFI can upgrade to higher category (category ‘C’ to ‘B’ and from ‘B’ to ‘A’) if the institution seeking to upgrade is formed through a merger).</p>
<p>
	The rules also promise to recommend to the government for exemption of taxes in case a BFI faces losses during the course of merger facilities include the time duration of using SLF will be expanded to 30 days from the existing 5 days for three years after completion of merger process. NRB can provide other facilities according to the need of the banks.&nbsp;</p>
<p>
	<strong>Challenges of Transition</strong></p>
<p>
	Most of the consumers do not get sense of transition of banks merger because in an ideal case, all banking services continue to function normally even during the transition. ATM cards work, checks consumers write do not bounce and consumers will be able to get the all services.&nbsp;</p>
<p>
	&nbsp;However, banks face several problems during the transition. Among others major challenges of merger are as mentioned below:</p>
<p>
	<strong>1. Brand Name</strong></p>
<p>
	The identity of the institution in the market is through the brand name. The image of an entity is joining with a brand image. So, the settlement in the brand name of the newly formed merged entity is essential.</p>
<p>
	<strong>2. Composition of board of directors (BoD) and shareholders</strong></p>
<p>
	The major decision makers in any entity are the board of directors and the shareholders. If the disputes arise among these people, the performance as well as the future of the entity will be directly hampered. So, the number as well as the persons that should represent at the BoD should be settled in cool mind.</p>
<p>
	<strong>3. Structure of the new management team</strong></p>
<p>
	The new merged entity comprises of the management team from two or more different entities. So, clear visions should be set-up for making the new management team which could handle the merged organization in coming days.</p>
<p>
	<strong>4. Employees Management</strong></p>
<p>
	As the organization is merged, at the same time the employees also come together. The major assets any organization is human resources. So, if the merged entity can not handle properly the grievances of the employees, the situation of disputes may arise. &nbsp;</p>
<p>
	<strong>5. Ownership Division</strong></p>
<p>
	The problem of division among the ownership might arise in the merged entity. The questions of shareholding as well as takeover of the share equity might create division among the shareholders. &nbsp;</p>
<p>
	<strong>6. Banking Software</strong></p>
<p>
	Various types of software are being used by the BFIs for the smooth operation. Huge cost and efforts had been gone in maintain the software in an organization. But if the two different entities are using two different types of banking software, the problem as well as cost may arise in the settlement of the books of accounts.</p>
<p>
	 </p>
<p>
	<strong>Need of Separate Acquisition Law</strong></p>
<p>
	Acquisition is, however, yet to come under the legal regime in the country. The central bank has said that it has been doing necessary preparations to introduce a separate legal mechanism on acquisition to encourage consolidation of the financial sector. Acquisition of financial institutions is difficult at present since there is no related legal provision, says CEO of Kailash Bikas Bank Krishna Raj Lamichhane who is also the president of Development Bankers Association.</p>
<p>
	NRB officials say that about half a dozen banks had held talks with the central bank about the possibility of acquiring regional development banks and finance companies to reach out to new areas. Acquisition is a relatively faster process as the challenges of merger such as it can be done once the buyer and the seller reach an agreement. Bankers say the introduction of legal provisions for acquisition will help bring down the number of BFIs in the country. The central bank needs to be careful while issuing new licenses and also the ability for smaller banks to withstand the economic crisis.</p>
<p>
	<strong>IPO Attraction</strong></p>
<p>
	The Nepali investors have been showing very encouraging response to the IPO of the company, especially of commercial banks. The data of Securities Board of Nepal (Sebon) reveals that 22 companies have got approval for the IPO from mid July 2012 to till the mid May of 2013. Shares worth of Rs 5.78 billion came in the market during this period. Of the total 22 companies, eight development banks, eight commercial banks, three finance companies, one insurance company and one hydro-power company.</p>
<p>
	<strong>The Direction Ahead</strong></p>
<p>
	The foremost challenge to the country’s banking sector in the realm of merger of banks is to create an environment where major financial institutions will go for merger voluntarily, says Upendra Paudyal, vice-president of Nepal Bankers Association (NBA).</p>
<p>
	The overall financial health of merged institutions has been found to be improved so far, he opines, saying the primary intention of the merger should be to strengthen capacity of concerned banks and financial institutions.&nbsp;</p>
<p>
	The policy taken by the Nepal Rastra Bank has resulted in positive signs since the market players in the arena of banks and financial institutions have saturated, adds Paudyal says. “Merger bylaws have played very crucial role in lowering the number of BFIs.”&nbsp;</p>
<p>
	But there is a question about the way forward of merger in the banking sector. The mathematical aspect has been highlighted so far by both the government and the BFIs, Paudyal says. It is cultural aspect which largely determines the success of merger. Sincere effort from all concerned parties is a must to make a merger journey a great success in the counry, he concludes.</p>
<p>
	&nbsp;&nbsp;</p>
<hr />
<p>
	<strong>In Nutshell</strong></p>
<p>
	The first case of merger between BFIs in Nepal was the merger of HISEF Finance Ltd into Laxmi Bank Ltd in 2004</p>
<p>
	<strong>BFIs that have merged already</strong></p>
<ul>
	<li>
		Himchuli Development Bank &amp; Birgunj Finance forming H&amp;B Development Bank Ltd</li>
	<li>
		Narayani Finance &amp; National Finance forming Narayani National Finance</li>
	<li>
		Nepal Bangladesh Bank &amp; Nepal-Sri Lanka Merchant Bank forming Nepal Bangladesh Bank Ltd</li>
	<li>
		Kasthamandap Development Bank &amp; Shikhar Finance forming Kasthamandap Development Bank Ltd</li>
	<li>
		Business Development Bank &amp; Universal Finance forming Business Universal Development Bank Ltd</li>
	<li>
		Machhapuchchhre Bank &amp; Standard Finance forming Machhapuchchhre Bank Ltd</li>
	<li>
		Global Bank &amp; IME Financial Institution &amp; Lord Buddha Finance forming Global IME Bank Ltd</li>
	<li>
		Infrastructure Development Bank &amp; Swastik Merchant Finance forming Infrastructure Development Bank Ltd</li>
	<li>
		Annapurna Development Bank &amp; Suryadarshan Finance forming Supreme Development Bank Ltd</li>
	<li>
		Vibor Bikas Bank &amp; Bhajuratna Finance forming Vibor Bikas Bank Ltd</li>
	<li>
		Alpic Everest Finance &amp; Butwal Finance &amp; CMB Finance forming Synergy Finance Co Ltd</li>
	<li>
		Shine Development Bank &amp; Resunga Development Bank forming Shine Resunga Development Bank</li>
	<li>
		Pashupati Development Bank &amp; Udyam Development Bank forming Axis Development Bank Ltd</li>
	<li>
		Prudential Finance &amp; Gorkha Finance forming Prudential Finance Company Ltd</li>
	<li>
		NIC Bank &amp; Bank of Asia forming NIC Asia Bank Ltd (Process ongoing)</li>
</ul>
<p>
	<strong>Letter of Intent (LoI) Received &nbsp; &nbsp;&nbsp;</strong></p>
<ul>
	<li>
		Premier Finance &amp; Imperial Finance to form Premier Imperial Finance</li>
	<li>
		Royal Merchant Banking and Finance, Rara Bikas Bank &amp; Api Finance</li>
	<li>
		Araniko Development Bank &amp; Surya Development Bank</li>
	<li>
		Central Finance Ltd &amp; Patan Finance Ltd</li>
	<li>
		Diyalo Bikas Bank Ltd &amp; Professional Bikas Bank Ltd</li>
	<li>
		NDEP Development Bank &amp; Hama Finance Ltd</li>
	<li>
		Siddhatha Development Bank &amp; Public Development Bank Ltd</li>
	<li>
		Five Regional Development Bank to form One National Level Gramin Bikas Bank</li>
	<li>
		Shangrila Development Bank Ltd &amp; Bagheshwor Development Bank</li>
</ul>
<p>
	<strong>LoI In Pipeline&nbsp;</strong></p>
<ul>
	<li>
		Lalitpur Finance Ltd &nbsp;&amp; Progressive Finance Ltd</li>
	<li>
		Sagarmatha Merchant and Finance Ltd &nbsp;&amp; Reliance Finance Ltd</li>
	<li>
		Social Development Bank &amp; Corporate Development Bank</li>
	<li>
		Vibor Bikas Bank &amp; Kist Bank Ltd</li>
	<li>
		Manakamana Development Bank Ltd, Infrastructure Development Bank, Yeti Finance Limited &amp; Valley Finance Ltd.&nbsp;</li>
	<li>
		Khadbari Bikas Bank &amp; Birat Laxmi Finance</li>
	<li>
		Global IME Bank &amp; Social Development Bank Ltd.</li>
</ul>
<p>
	<strong>Merger Process Dumped</strong></p>
<ul>
	<li>
		Kathmandu Finance Ltd &amp; Civil Merchant Bittiya Sanstha Ltd</li>
</ul>
<div>
	<hr />
</div>
<p>
	<strong><span style="font-size: 12px;">Financial Indicators of the Merged Entities</span></strong></p>
<div>
	<p>
		The major financial indicators of the merged entities have slightly improved compared to the pre-merger situation.&nbsp;</p>
	<p>
		Machhapuchhre Bank Ltd (MBL) had a higher level of non-performing loan (NPL) before merger than of the Standard Finance Limited (SFL). The NPL of MBL was at 2.84 percent whereas; the NPL of SFL was at 0.73 percent. After the merger, the NPL of MBL stood at 2.73 percent according to the financial report for mid-July 2012.</p>
	<p>
		The Credit Deposit (CD) Ratio of SFL was very high at 104.27 percent whereas, the ratio was at good level at 74.62 percent for MBL before merger. &nbsp;After the merger the CD ratio of MBL was maintained at 73.07 &nbsp; percent. But the Return on Assets (ROA) declined below one percent.</p>
	<p>
		&nbsp;Among the three merged entities in Global IME Bank Ltd, the financial performance of Lord Buddha Finance Ltd was not good. Its Capital Adequacy Ratio (CAR) was very high at 33.76 percent. &nbsp;Similarly, the NPL and ROA of the finance company were at 3.99 percent and -0.61 percent respectively. The NPL of merged entity, Global IME Bank Ltd stands at 1.54 percent as of the third quarter report of the FY 2012-13. At the same time the ROA is at 1.13 percent.</p>
	<p>
		Similarly, in Vibor Bikas Bank after merger of Bhajuratna Finance &amp; Saving Co. Ltd. has a high level of CAR at 14.42 percent but at the same time the level of NPL has increased to 32.63 percent till the third quarter of the F/Y 2012-13. The ROA of the bank is also seen negative. It is at -1.95 percent.&nbsp;</p>
	<p>
		Vibor Bikas Bank is again going ahead with a proposal of merger with Kist Bank Ltd. &nbsp;The NPL of the Kist Bank Ltd is seen comparatively lower than of the Vibor Bikas Bank. The ratio was at 32.63 percent and 7.89 percent for Vibor Bikas Bank and Kist Bank respectively as of third quarter of the F/Y 2012-13. &nbsp;Both the banks have posted the negative ROA during the third quarter of the FY 2012-13. Similarly, Vibor Bikas Bank has not been able to maintain the good level of CD ratio during the period.</p>
	<p>
		Recently, Bank of Asia Nepal Ltd and NIC Bank Ltd have received LoI from NRB for merger. The banks have already announced a plan to publish their combined financial report of the fourth quarter of F/Y 2012-13 in the name of the merged entity, NIC Asia Bank Ltd. Both the banks’ indicators show that they are in a financially sound position. After the merger they are likely to emerge even stronger in the banking market.</p>
	<p>
		<img alt="Financial Indicators of Some Merged and to be Merged BFIs:" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_financial_indicators.jpg" style="margin:0 10px 0 0;" /></p>
</div>
<div>
	<hr />
	<p>
		<strong style="font-size: 12px;"><span style="font-size: 12px;"><br />
		</span></strong></p>
	<p>
		<strong style="font-size: 12px;"><span style="font-size: 12px;">‘Merger is a need of the entire financial system’</span></strong></p>
	<p>
		 </p>
	<p>
		<strong><img alt="Bhaskar Mani Gyawali, Spokesperson, NRB" height="240" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_bhaskar.jpg" style="float:left; margin:0 10px 0 0;" width="200" />What &nbsp;is the situation of merger in the banking and financial Institutions (BFIs)?</strong></p>
	<p>
		The trend of merger in BFIs has grown lately. &nbsp;After the introduction of Merger Bylaws in 2011 by Nepal Rastra Bank (NRB), 22 financial institutions merged to become 10 within a year. This is very encouraging.</p>
	<p>
		<strong>Why is there a need for merger in the financial market?&nbsp;</strong></p>
	<p>
		Financial institutions have mushroomed in the country, thanks to the liberal policies adopted by Nepal Rastra Bank in the past. Given the size of our financial system, the number of BFIs looks more than normal. Many of these institutions had invested in the real estate sector without any long-term benefits. NRB was forced to fix a ceiling on real estate investment by banks after a surge in the volume of nonperforming loans.</p>
	<p>
		Investment by financial institutions in unproductive sectors caused a liquidity crisis in the market. These institutions also failed to maintain corporate governance. &nbsp;Financial institutions should be able to return money to depositors as required. NRB had introduced Merger Bylaws 2011 to improve the condition of financial institutions.</p>
	<p>
		<strong>Why are there no expected improvements in merged institutions?</strong></p>
	<p>
		Merged organizations are much improved in comparison to single and troublesome financial institutions. The process of merger has helped institutions increase their capital base and ability to return the people’s money.&nbsp;</p>
	<p>
		<strong>Can you briefly tell us the merger process?</strong></p>
	<p>
		Merger is a need of the entire financial system of Nepal. The share swap ratio is obviously an issue of tension in the pre-merger phase. NRB provides counseling services to all institutions which want to go for merger. The process is very simple. At first, the BFIs should take the special decision of merger thorough the General Meeting of shareholders. Then they should sign a Memorandum of Understanding (MoU) for merger. Then, after forming a merger committee, they should apply to the central bank for the Letter of Intent. NRB conducts interaction with concerned stakeholders and provides insights including strengths and weaknesses of the merging BFIs. If BFIs want to continue the merger process even after the interaction, NRB approves the LoI. Concerned financial institutions should approve new structure which will come into effect after the completion of the merger process.</p>
	<p>
		&nbsp;NRB should always deal the entire merger process carefully because merger should not promote monopolistic business.</p>
	<p>
		<strong>What are the post-merger complications? Does NRB intervene if complications arise in the post-merger phase?</strong></p>
	<p>
		Some minor complications are inevitable in the post-merger phase. Salary disputes, implementation of new structure and other managerial work create several complications. NRB provides the necessary assistance if the situation so demands. Similarly, the central bank may opt for positive intervention if the post-merger complications start to hurt the entire transactions of the concerned BFI.</p>
	<p>
		<strong>Are the BFIs reluctant for mergers?</strong></p>
	<p>
		Definitely not. But merger is a complex process. Two or more institutions can opt for a merger when they develop a sense of mutual trust. Many chiefs have to agree to make one chief. Jumbo administrative committees have to be downsized. The present scenario of mergers is pretty exciting.</p>
	<p>
		<strong>Is merger a less attractive proposition because of the low incentives for the same?&nbsp;</strong></p>
	<p>
		First, organizations should be aware about the merger process. They should be aware that merger is not for NRB but for them. This is because it is their responsibility to make the organization stronger and sustainable. Providing different incentives and schemes to organizations is like luring a child by giving them chocolates. It is unnecessary to entice them like that.&nbsp;</p>
	<p>
		<strong>The incentives provided to the merging institutions have been discontinued. What about reintroducing these insentives to the institutions that will merge now ?</strong></p>
	<p>
		NRB couldn’t continue the facility because of the incomplete budget. &nbsp;As soon as we have a full budget, NRB will renstate these facilities. The central bank is committed to facilitate the merger process.&nbsp;</p>
	<p>
		<strong>Where has NRB’s preparation regarding bylaws related to acquisition reached?</strong></p>
	<p>
		Legally, BFIs &nbsp;which want to acquire the stake of any &nbsp;other financial institution can do so. The only difficulty is that NRB does not have any specific guideline and legal provision to tackle the issue of acquisition. NRB, however, is very supportive if any financial institution wants to acquire the stakes of other institution.</p>
	<p>
		<strong>Is NRB considering forced mergers?</strong></p>
	<p>
		 </p>
	<p>
		NRB is not for forced mergers because there is a need for mutual bonding in order to operate the merged entity smoothly. But NRB might force institutions which are in miserable financial status and cannot improve the same over a period of time.</p>
</div>
<div>
	<hr />
</div>
<p>
	<strong>Initial Public Offering in Banking Sector</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<img alt="Niraj Giri" height="270" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_niraj.jpg" style="float:left; margin:0 10px 0 0;" width="200" />The capital market is a mechanism created to facilitate the exchange of financial assets with a maturity period of more than a year. It is a broad term embracing the buyers and sellers of securities and all the agencies that assist the sale and resale of securities.&nbsp;</p>
<p>
	Capital market activities started in Nepal in 1937 with the issuance of the shares of Biratnagar Jute Mills Ltd. However, a more structured market activity started with the establishment of a stock trading mechanism in 1976 along with the establishment of the Securities Exchange Center. Enactment of the Securities Act and establishment of the Securities Board in 1983 gave the impetus for the development of capital market in Nepal in a more organized manner. In the early 90s after the success of the first People’s Movement, the government adopted liberal economic policies and opened up various areas to the private sector. This paved the way for the entry of private banks into the country’s financial market.&nbsp;</p>
<p>
	With the opening up of the economy, banks and financial institutions (BFIs) from the private sector have been in the forefront of making initial public offerings (IPOs). The IPOs of BFIs are also the most sought-after IPOs in the secondary market. In fact, most of the trading that takes place in the secondary market is that of the shares of companies from the banking and financial sector. So, this sector has played a major role in the development of our capital market., the number of companies listed at Nepal Stock Exchange (NEPSE) as of May 17, 2013 was 224 of which 29 are commercial banks and 142 development banks and finance companies. Besides, 68 per cent of the daily trade at NEPSE is of the shares of commercial banks. This shows that the secondary market in Nepal is highly dominated by the banking sector. Why is this sector so dominant?</p>
<p>
	There are various reasons. First and foremost is the licensing requirement of Nepal Rastra Bank (NRB), the central bank. NRB has made it mandatory for BFIs to issue their shares to the public. BFIs have to go for IPOs within two years of obtaining the operating license from the central bank. Besides, in IPOs, funds flow from the provider to the user. This means the contribution of IPOs to financing companies is direct in the sense that it provides them with additional funds for either starting a new business or expanding or diversifying the existing ones. This might not sound true for banking sector companies. However, IPOs fetch them funds which they can use to lend or to meet the various other requirements such as capital requirement set forth by the regulator. IPO also gives the public investors a partial ownership of the company and an opportunity to be represented at its board of directors. This representation of public directors in the board helps to bring about transparency and good governance at the higher echelon of the company.</p>
<p>
	When Janata Bank Ltd &nbsp;issued an IPO worth Rs 600 million last year, it was believed that the bank had ill-timed the issuance as the secondary market indicator, the NEPSE index, was bearish. &nbsp;Investors were pulling out of &nbsp;the secondary market and the merchant bankers related with the IPOs, too, were worried about the subscription. However, when the IPO closed, the issuance had been oversubscribed by 2.43 times. This showed that the investors still had confidence in the IPOs of commercial banks. The IPO of Janata Bank was followed by that of Civil Bank Ltd which &nbsp;issued an IPO worth Rs 800 million which, in turn, was oversubscribed by 6.38 times. Recently, Commertz &amp; Trust Bank Ltd made an IPO worth Rs 600 million which was oversubscribed by 11.64 times. During the same period, IPOs of some development banks and finance companies were undersubscribed or even cancelled.&nbsp;</p>
<p>
	NRB has put a lot of emphasis on good corporate governance practices in the banking sector and banks are under constant supervision of the central bank. Barring a few, most banks have been giving good returns, in terms of cash dividend and bonus shares to their investors. The investors, too, have benefitted from a higher capital gain from the trading of shares of banks, compared to those of companies from other sectors. There is also a belief amongst the investors that commercial banks do not fail. This has boosted the investors’ confidence in banking stocks.&nbsp;</p>
<p>
	Both the government and the central bank have been persuading the BFIs for mergers in order to strengthen the banks and consolidate the growth of the financial sector. Some financial institutions have opted for merger and the effects of this will be seen on the market in the coming days. Though difficult, mergers will definitely strengthen the banks' capital base and enhance their operational efficiency through synergic effects. This, in turn, will attract more investors to banking stocks.&nbsp;</p>
<p>
	<span style="font-size:10px;">(The author is a Director at SEBON)</span></p>
<div>
	<hr />
</div>
<p>
	<strong>Problems of Merger</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<img alt="Krishna Raj Lamichhane" height="270" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_krishna.jpg" style="float:left; margin:0 10px 0 0;" width="200" />The country’s banks and financial sector witnessed a significant change with the introduction of merger bylaw by Nepal Rastra Bank (NRB), the central regulatory body of banks and financial institutions (BFIs). The bylaw has provided unique opportunities to BFIs to overcome the problem of capital inadequacy.</p>
<p>
	Nepal Rastra bank enacted merger bylaw in 2011 and the pace of merger have accelerated after that. The reasons of mergers among banks and financial institution is obvious, they want expand their presence in the market. Some major reasons of merger are as mentioned below:</p>
<p>
	<strong>Increase capital base:</strong> The reason of most of the mergers is that banks want to increase their capital base. The central bank has urged banks to enhance capital base to expand their services into the urban areas especially in the capital.</p>
<p>
	<strong>Expand services: </strong>Banking consolidation helps concerned institutions expand their services. For instance, merger provides opportunities of utilizing each other’s brand and public relation jointly. Banks and financial institutions can expand their services after increasing their capital base. Similarly, merger helps banks to increase investment capacity that will make them capable of investing in huge projects.</p>
<p>
	<strong>Implementing new and innovative ideas: </strong>Banking consolidation through merger will allow BFIs to explore chances of coming up with innovative ideas. Together, the banks and financial institutions can enhance their operation system and implement effective management.</p>
<p>
	However, the process of merging of banks and financial institutions is not free of hassles. There are basically two types of hassles to complete the merger process: i) external or created by the regulator and ii) internal or the managerial problems within banks and financial institutions.</p>
<p>
	At present, the central bank has made it mandatory to stop trade of shares after starting the merger process which, I think, should be changed. I do not see any logic and rationale behind this provision.&nbsp;</p>
<p>
	Similarly, the government does not provide any facility to the banks and financial institutions which want to be merged. I feel that the government should reduce corporate tax to 25 per cent from existing 30 per cent for five years after merger process complete. It is necessary because BFIs should invest huge chunks of money in managerial activities to complete the merger process. It is really challenging to ensure smooth transition and resolution of conflict likely to surface among the staff due to hostility, ego clashes or layoffs during the merger process.</p>
<p>
	It is a fact that the existing merger process between various financial institutions seem to be more forceful in nature. I do not mean that the Nepal Rastra Bank has put any pressure for mergers but the circumstances have made BFIs merge. I think the government should create an environment where banks and financial institutions voluntarily show their readiness to be merged.</p>
<p>
	<span style="font-size:10px;">(Writer is Chairman of Development Bankers Association and CEO at Kailash Bikash Bank)</span></p>
<div>
	<hr />
</div>
<div>
	<div>
		<strong>Merger and Its Challenges</strong></div>
</div>
<div>
	<strong><br />
	</strong></div>
<p>
	<img alt="Guru Prasad Paudel" height="270" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_guru_prasad.jpg" style="float:left; margin:0 10px 0 0;" width="200" />Business organizations can combine with each other in a various ways. One of the most common approaches is Mergers and Acquisition (M&amp;A), which combine independent firms under common control. After unveiling a merger bylaw, the practices of M&amp;A in Nepali banking sector has been increasing tremendously. Around two dozen BFIs merged each other and created 13 institutions. More than two dozen BFIs have got the letter of intent (LOI) to go for the merger. Even if merger has been practiced in the financial sector to cope the various issues, there has been no real academic effort to extensively appraise how employees are reacting, adapting and coping with the new realities in the post– merger period as well as how BFIs are achieving their business targets.&nbsp;</p>
<p>
	Furthermore, we should not forget that in achieving the objective of BFIs merger, quite a number of intrinsic risk factors may be involved both during and post merger period which should have to be address by regulators as well as by bank BOD and senior management level.&nbsp;</p>
<p>
	Literature says, merger that has been practiced internationally is not less challenging. Some inherent features of merger as well as some country specific problems add more challenges in it. In the past, tangible aspects (e.g. capital, raw materials, equipment etc.) were the major issues of merger. Now the scenario has changed, and intangible aspects (e.g., human capital, culture, knowledge, goodwill, brand etc) are emerging as key challenges. &nbsp;</p>
<p>
	We adopted merger strategy very lately; though it has more than 120 years long history internationally. Nepal dose not have separate Act about M&amp;A, so there may arise some legal risk in the future. Today, large BFIs desire to acquire small financial institutions but we have no Acquisition provisions. M&amp;A is significantly affected by the geo-political condition of the country. Present situation of our country is unfavurable for mergers because of the rise in concept of divergence and dissolution, which is a serious external threat for merger. Lack of specific Act and provisions regarding acquisitions and geo-political scenario are major challenges. Besides these, some challenges and problems are as follows:&nbsp;</p>
<ul>
	<li>
		Top executives and top level management team may leave unexpectedly. When they leave the merged organization the expected synergy will be evaporated.</li>
	<li>
		Expected synergies evaporate also because of cultural differences. Research says only 23 percent of all M&amp;A earn their cost of capital.</li>
	<li>
		Data migration plays vital role in the merger, sometimes this single task will be multi-time expensive than other factors of merger.&nbsp;</li>
	<li>
		Expenses get increased because of disposal of old stationeries, write-off provisions of duplicated branches.&nbsp;</li>
	<li>
		Power politics can be a major obstacle to the success of M&amp;A.</li>
	<li>
		Agency problem is another key challenge of M&amp;A.</li>
	<li>
		Who are going to leave from the BOD &nbsp;will be an anxious issue.&nbsp;</li>
	<li>
		It further creates anxiety while selecting CEO or top level management officials because the institutions undergoing merger have their own individual CEO or higher management authorities.&nbsp;</li>
	<li>
		Due Diligence Audit Report (DDAR) does not give accurate price of the institutions hidden contingent liabilities may get added which further enhance the challenge in the merger.&nbsp;</li>
	<li>
		Management of employee of duplicated branches is yet another high value expense occurred due to merger.</li>
</ul>
<p>
	<span style="font-size:10px;">(Writer is Deputy Director at Nepal Rastra Bank. The views expressed here do not necessarily represent the views of NRB)</span></p>
<div>
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			'keywords' => 'Nepali Banking In Transition Through Mergers And IPOs, Cover story, Banking, Mergers, New Business Age, June 2013',
			'description' => 'As per the NRB’s latest data, the country has 31 commercial banks, 87 development banks, 80 financial companies and 21 micro-finance companies. The number shows that there is tough competition among banks and financial institutions (BFIs) forcing them to face multiple challenges. The major one is surely the capital base.',
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			'id' => '1075',
			'article_category_id' => '52',
			'title' => 'Mirage Of Industrial Security',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Armed Police Force, an alternative police force of Nepal, has recently informed that it will mobilize the Industrial Security Force (ISF) as soon as the government adopts the ‘The Directives Relating to Customs, Revenue and Industrial Security.’ It is good news for fledgling industrial sector of Nepal, in a sense that something is certainly better than nothing.</p>
<p>
	For more than a decade now, industrial security has been a main concern for Nepal’s industrial and business sectors. The facets of insecurity are many. Industrialists and business people are often kidnapped, killed, threatened or extorted. Factories and businesses are forced to close down. Barriers are created for products reaching the markets, etc. This has had a very crippling effect on industrial growth, investment climate and overall expansion of the economy. As the result, the contribution of manufacturing sector to country’s GDP has gone down in the recent years and all along has remained far below its potential, much lower than the agricultural and service sectors.</p>
<p>
	In our context, industrial security is a complex issue since the insecurity stems out from a multitude of sources, mainly from the politically protected powerful formal or informal outfits. For this reason, a number of measures of industrial security of bureaucratic nature announced by different governments during last one decade have neither protected the industries nor the industrialists.</p>
<p>
	Therefore, more important than a force to be set-up, at first place, there must be a political commitment and honest implementation of the same if an effective security were to be provided to the sector. As long as the political parties, specifically some top leaders of major parties, continue to protect and nurture the criminal gangs and notorious dons, any security force of proposed nature will be rendered ineffective in no time. That is what has happened so far. Similarly, the violent activities that take place in the name of trade unions affiliated to these political parties is another headache, which in fact has in recent years forced a number of industries and businesses to close down permanently. In addition to it, frequent strikes and blockades very often organized by this or that political party are other main reasons of insecurity.</p>
<p>
	If the country is indeed determined to provide industrial security, it must first come in the form of political commitment of all reckonable political forces. They must be able to reign in their respective trade unions so as to prevent them from acting as ‘licensed criminal organizations’. Rampant impunity is another equally alarming phenomenon. Even if one is caught with reasonable evidence of involvement in criminal activities that jeopardize the industrial security, he is hardly punished. Political protection, corruption or legal loopholes set them free sooner than one could imagine.</p>
<p>
	Undoubtedly, an effective industrial security is possible only when the overall law and order situation of the country improves, political forces stop impeding the justice and making their unions an extortion apparatus. But, at the industry level, right of ‘hire and fire’ to the employer would give another level of security to the industries. This will put all those elements at bay who claim to be workers but never work in the industry but in the political front.</p>
<p>
	Equally crucial is an industrialist and businessman being true to his profession. If the business people align themselves with this or that political force, or habour political ambitions, they are naturally opposed by the rival political forces. It is no secret that a large number of businessmen clandestinely finance the political parties and leaders, not only because of compulsion but as an ‘investment’ at their free will. These activities certainly do not help to consolidate their security situation. For the proposed force to be effective or mere functional, political commitment on the part of parties and professionalism on the part of industries are minimum prerequisites.</p>
<div>
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			'created' => '2013-06-07',
			'modified' => '2013-07-15',
			'keywords' => 'Mirage of Industrial Security, From the editor, editorial, New Business Age, June 2013',
			'description' => 'Armed Police Force, an alternative police force of Nepal, has recently informed that it will mobilize the Industrial Security Force (ISF) as soon as the government adopts the ‘The Directives Relating to Customs, Revenue and Industrial Security.’ It is good news for fledgling industrial sector of Nepal, in a sense that something is certainly better than nothing.',
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		'Article' => array(
			'id' => '1074',
			'article_category_id' => '74',
			'title' => 'Century Of Indian Cinema: The South Asian Message',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<em>Indian Cinema has turned a hundred years. And as it grew in shape, size, craft, value and visibility globally, it had love-hate relations in the South Asian region, whether in Nepal, Pakistan and Bangladesh. How have the relations of Bollywood with people and governments in South Asia evolved?</em></p>
<p>
	<strong>The 100 Years and Journey So Far</strong></p>
<p>
	Indian Cinema, not Bollywood, has completed a hundred years in May 2013, considering the release of the Marathi classic Raja Harischandra by father of Indian cinema, Dada Saheb Phalke, in May 1913 as the inception of Indian Cinema. Though the global face of Indian Cinema is surely Bollywood, the large-scale Hindi films from Mumbai, there are much more to the art and craft of cinema from India, specially the films in Malayalam, Bengali, Marathi, Tamil and Telugu languages. The non-Hindi films from India are equal in number and value of business to the Hindi films, all totaling some 1200 films in 2012 bringing in some USD 3.6 billion revenue. This is more than double the number of films produced by Hollywood though the revenue is more than a trillion dollars in Hollywood. The spread of the Indian cinema industry’s oeuvre is amazing. The films are shown in some 100 overseas markets, catalyzing the growth of trans-national creative networks, collaborations. Big studios Columbia, Disney and 20th Century Fox are now striking co-production deals with Indian companies.</p>
<p>
	<strong>Bollywood &amp; Pakistan:</strong></p>
<p>
	In the South Asian markets, especially in Pakistan and Bangladesh, Indian cinema was officially banned for long. However, that did not help the local entertainment industry and Indian cinema found pirated ways into the houses of people wanting the same.</p>
<p>
	The 1960s marked the high point of Pakistan’s film industry, when Abbot Road in Lahore filled with smart art-deco cinemas playing the latest colour offerings to packed houses. Today, the heart of movieland is dead. The 1998 hit Choorian briefly revived the industry. Its tale of a city boy who falls in love with a country girl promised to another man, was first dismissed by critics as derivate, but it proved a huge hit with movie audience who loved the way it pinched a proven Bollywood formula.</p>
<p>
	Pakistan had banned Indian films after going to war with its neighbor in 1965 but over the past few years, as relations between the nuclear-armed rivals have improved, authorities have been allowing a trickle of Indian films to be shown in cinemas. That has delighted movie fans and cinema operators but Pakistani film producers fear a flood of Indian films could mean the end of the local film industry.</p>
<p>
	However, in recent years some of Pakistan’s hottest talent has moved to Mumbai. Ali Zafar, one of the country’s biggest pop stars, made his Bollywood debut this year in Tere Bin Laden. Beena Malik, singers Nusrat Fateh Ali and Rahat Fateh Ali and many others are all too known. Add in a stagnating economy and criticism of Lollywood’s bawdy movies by Islamic groups, cinema in neighbouring India seems an attractive destination for young stars. Nilofar Bakhtiar, who chairs the Pakistan Senate’s standing committee on culture and tourism, suggested strengthening ties with Bollywood to help revive Lollywood’s fortunes, including film training opportunities. But the suggestion would lead to a faster exodus of talent to India, according to Qaisar Sanaullah Khan, secretary of the Pakistan Cinema Owners’ Association.</p>
<p>
	For long, competition from Bollywood fare as well as the mediocrity of Pakistani films means that many Pakistanis opt to stay at home and watch Indian movies on pirated DVDs. Cinemas have been struggling for years and many operators have given up and sold off their premises which have been converted into shopping centers or offices. From about 750 cinemas nationwide in the 1970s, there are now 300. But Indian films are breathing life back into Pakistani cinemas. Cinema operators are cashing in on the revival of interest in the cinema the Indian films have generated. Before screenings of Indian films began, a cinema ticket in Karachi cost less than 100 rupees. Now it is 150 rupees or more. Pakistani film distributors also welcome the revival of cinemas.</p>
<p>
	<strong>Bollywood &amp; Bangladesh:</strong></p>
<p>
	It’s official. After being exiled for 39 long years since 1972, Indian films were set to release in Bangladesh since late 2010. It’s no secret that Bollywood films are immensely popular across the border in Pakistan and Nepal, and Tamil films in Sri Lanka. However, thanks to protectionist measures by the Bangladesh government, Indian films have long been banned there. The rationale behind the ban that came into effect in 1972 after India won independence for them from Pakistan was to protect the fledgling Bangladeshi film industry. In theory, it was not a bad idea.&nbsp;</p>
<p>
	But the lawmakers forgot one small thing. In the information age, getting access to Indian films through illegal means is extremely easy. And the Bangladesh audience prefers Indian films, as the high number of shops selling illegal DVDs and the small number of cinemas in Dhaka testify.</p>
<p>
	In January 2010, Bangladesh decided to allow the release of Indian films but this happy period lasted only six months as aggrieved local filmmakers cried foul and appealed against the decision. Thus, Indian films were banned again. Now, cinema owners, fed up with the lack of local interest in local fare, appealed to the court to allow Indian film imports and the courts have agreed, leading to official Bollywood releases in Bangladesh since September 2011.</p>
<p>
	First of all, in the age of globalization and free sky we cannot keep resisting foreign culture to creep into our society. The popularity of Hindi cinema is immense not only in Bangladesh but also across the world. And people around the world can easily get access to the cable and satellite television. Moreover, DVD and free download of movies from the internet have made it even easier for the middle and upper class viewers to enjoy Hindi or English movie at will. These alternatives do not include the marginal class of the society. The irony is the middle-class in the country rarely go to cinema hall to watch Bengali cinema or keep themselves updated about news and views of Dhaliwood. It is strongly believed that the target population of Bengali cinema is no other than the rickshaw pullers, garments workers and other wage labourers. The quality of Bangladesh cinema is quite understandable in terms of its technical aspects and storyline, which are not comparable with any other country’s cinema such as Indian, or even Pakistan and Nepal.</p>
<p>
	&nbsp;One can easily ask why the ‘cinema protectors’ do not protest against English cinema or Hindi cinema shown on satellite TV or in the internet. The reason is quite obvious. It is either their family members who are direct consumers of those sources or they have no hand to regulate the sky. But, they only can regulate the taste and fate of the marginal people and cinema halls as they wish.</p>
<p>
	Also, the concept of ‘culture’ is not so easy to understand what we perceive it to be. It has different facets and dimensions which can encompass time and space and influence people in another society. We use the concept ‘culture’ without much thought and conceptualize it which is why the concept remains a vague one in academia and even in the socio-political sphere. Dhaliwood producers and exhibitors are now understanding that if their own cinema quality falls and cannot evoke the audience to the cinema hall what will happen to some 800 cinema halls that still survive across the country?</p>
<p>
	<strong>Bollywood &amp; Nepal:</strong></p>
<p>
	The making of Nepali films is said to have begun with D.B. Pariyar’s Satya Harishchandra, which was the first Nepali-language film to be shot. It was produced from Kolkata, India, and was released on September 14, 1951. Aama (meaning mother) was the first film produced in Nepal and was released on October 7, 1964. It was produced by the Information Department of His Majesty’s Government of Nepal. The first film to be produced under a private banner was Maitighar, which was released at the end of 1966 by Sumonanjali Films Pvt. Ltd. Although it was a Nepali movie, it had many Indians contributing toward its making. The Nepal government established the Royal Nepal Film Corporation in 1971. Mann Ko Bandh was the first film produced by the corporation. It was followed by Kumari (the first Eastman color Nepali film) in 1978, Sindoor in 1980, and Jeevan Rekha in a series. Their success opened up the avenue for private parties to enter into filmmaking as an industrial endeavor.</p>
<p>
	In 1990, Nepal witnessed important political change. The people’s movement brought the monarchy to its knees and democracy was restored. The society started to become open and vibrant. This had an important consequence for the fledgling film industry: It began to grow rapidly or even to “bloat”. There was an unprecedented growth in the number of productions. Within three years, some 140 films were made. Distribution started to develop. Market share in the existing market increased and the market itself expanded. Cinema halls increased to more than 300. Nepali filmmakers became optimistic of displacing Hindi films, which had dominated the Nepali market earlier.</p>
<p>
	The start of the Maoist revolution in Nepal in the mid-1990s was the beginning of the downfall of the domestic film industry. There was an unwritten ban on Hindi films too for quite some time. In the period of war and conflict, a very small number of films were made, and audience numbers fell sharply. It resulted in lower budgets and even lower performances, which resulted in even smaller audiences. In the later years of the conflict, the production and release of Nepali films had almost come to a standstill. Many actors and filmmakers left the country in search for work abroad.&nbsp;</p>
<p>
	Also, during the 1990s, some filmmakers, mostly with non-fiction base, started championing a new kind of cinema. They denounced the crude imitation of Bollywood aesthetics and demanded indigenous aesthetics and a more realistic approach. They made some films which have received some critical acclaim at home and some international recognition. Historic movies like Balidaan and Seema Rekha made during this period were appreciated both by critics and audience.</p>
<p>
	By 2006, the situation in Nepal calmed down. With the Maoists coming into mainstream politics, the Nepali film industry started to return to its previous state. Today, more films are being made and released. The production companies and those in the industry are enthusiastic about the country’s new situation. The return of peace has opened more venues for the shooting of films, and the industry is seen to be making good use of this time to revive its image.</p>
<p>
	<span style="font-size: 12px;">New generation moviemakers geared up to make sensible cinema with entertainment rather than Bollywood inspired socio-actions. Kagbeni, Sano Sansar, Mero Euta Saathi Cha,First Love, Kohi Mero, etc. are some of the fine examples of quality cinema in terms of presentation, performance, story and technical superiority. However, they lacked in connecting with the audience. In January 2012, a film named Loot was released which emerged as a blockbuster. It was also the first movie in decades to be screened more than 100 days in the cinema halls. Much recently Chapali Height broke opening weekend gross by earning 8.4 million at the box office, breaking one of the records held by Loot, but Loot still holds the distinction of the highest grosser by far.</span></p>
<p>
	After banning Hindi films in 2012, the breakaway faction of Maoists led by Mohan Baidya was forced to withdraw the ban within a few weeks ahead of the festive season. The party had imposed a ban on ‘vulgar’ Hindi movies in a bid to ‘safeguard national sovereignty’ and ‘promote a self-reliant economy’. Multiplexes and single screen theatres in Kathmandu began screening ‘Barfi’, ‘Heroine’, ‘Oh My God’ and ‘Kamal Dhamal Malamaal’---Hindi movies which were released before screening was stopped.</p>
<p>
	Due to the ban hall owners were either forced to down shutters or screen Nepali movies in few screens on discounted rates. But the response from movie goers was not enthusiastic. Movie halls incurred losses valued at nearly NRs 2.5 crore ( Rs. 1.5 crore approx) during the 10 days from October 1 to October 10, according to Ashok Sarma, managing director of Digital Cinema.</p>
<p>
	<strong>Conclusions:</strong></p>
<p>
	Given the complex reality of globalization in the age of free information and entertainment, we need to reconsider our cultural boundary and perception very seriously. Before anything else, we need to be more logically political and less emotionally cultural.</p>
<p>
	“Filmmaking is like a nuclear power. If used properly, it can immensely help mankind. And if misused, it can destroy many minds,” says the noted alternative film-maker of Assamese origin, Jahnu Barua. There can be cross-cultural flow through cinema across South Asia and this can help develop people-to-people relations.</p>
<p>
	Often the anti-woman or commodification of sex and violence through a large number of Bollywood films are questioned by critics in other South Asian nations. And rightly so. “It’s the job of cinema to condemn inexcusable social realities and portray reality as it ought to be — only a lazy film maker will claim that it’s impossible to do both while remaining entertaining and commercially viable,” says Anna MM Vetticad, author of The Adventures of an Intrepid Film Critic. A trip to the cinema can easily be a lesson in how to objectify women: skimpy clothes, close-ups of bare midriffs and of course, ‘item numbers’. Post the December 16 Delhi gangrape, the lyrics of the Fevicol se &nbsp;song came under fire. &nbsp;However, it is important to celebrate some changes for the positive as well. Though unable to entirely shrug off their unease of independent or ambitious women (think the climax of Cocktail or Fashion), recent movies have given us heroines who are vocal and free-spirited. Movies such as Aiyya frankly depict female desire. Even sexiness is no longer the preserve of the Sheilas or the Chikni Chamelis. In Zoya Akhtar’s Zindagi Na Milegi Dobara, Katrina Kaif is presented as beautiful, attractive but the camera doesn’t letch at her.&nbsp;</p>
<p>
	Further, film talent training, giving boost to film exhibition revenue, and creating production standards to achieve by allowing Indian Cinema can easily be the benefits in other South Asian nations.&nbsp;</p>
<p>
	This is not to say that there should not be any form of protection given to local film industry and talent. Make shows of local cinema compulsory in certain time-slots, by law. Allow local block-busters to be screened in prime time too, through market forces. Let local media adequately publicize the local cinema and its talent. Let tax rebates be given to local cinema and higher entertainment taxes on Bollywood cinema. Co-opt and legalize the income coming in, do not ban and languish in revenue.</p>
<p>
	Further, let there be institutional ways of promoting South Asian cinema within India too: through South Asian Film Festivals, workshops, day-time shows in certain markets (depending on the language spoken in those markets). Pakistani Urdu based films would go well in select halls of Lucknow, Hyderabad, Mumbai and even Delhi. Nepali films will have a good market in eastern and north-eastern India specifically. Bangladeshi films are being released in West Bengal routinely. The trend needs to be encouraged further through institutional and media efforts to this end.</p>
<div>
	<span style="font-size:10px;">(The author is former Dean of Symbiosis International University and President of the advisory board at Whistling Woods School of Communication, Mumbai.)</span></div>
<div>
	<span style="font-size:10px;"><br />
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			'description' => 'Indian Cinema has turned a hundred years. And as it grew in shape, size, craft, value and visibility globally, it had love-hate relations in the South Asian region, whether in Nepal, Pakistan and Bangladesh. How have the relations of Bollywood with people and governments in South Asia evolved?',
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			'title' => 'ICA Gives Flavours Of Openness',
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	 </p>
<p>
	<strong>By Bhawani Timilsina</strong></p>
<p>
	Young professionals find it difficult to further their academic careers as it requires managing work and study simultaneously. Open universities are gaining huge popularity among such professionals. The International Centre for Academic (ICA) has been helping such &nbsp;young professionals to pursue their academic dreams since its inception in 1997.</p>
<p>
	A majority of Nepali students are quite familiar with the idea of working and studying together. However, it is a task easier said than done. Binayak Shrestha was 23 when he felt the need to enhance his academic strength for career growth. But he found it difficult to continue study and work simultaneously. Then a friend suggested him to visit ICA which runs classes for courses offered by Indira Gandhi Open University, (IGNOU). Shrestha completed his degree back in 2008. He shares, “The experience of studying at ICA helped me enhance my academic qualification and build up confidence in a completely open and flexible environment. The advancement in technology supported me and my friends to get quality education while continuing our jobs.</p>
<p>
	The revolution in the information and communications technology has brought about a sea change in the teaching and learning system. Universities around the world are making their education ‘open’ to all; technology has made it possible for students to earn degrees without physically attending these universities. Open universities offer openness in selecting courses without the barrier of “prerequisites and essentials.” The demand of open universities has been growing around the world.</p>
<p>
	Paridhi Acharya, 26, completed her post graduation from ICA in 2010. &nbsp;What made her select a course of an open university was flexible environment that it provides, especially for those students who want to take work and study side by side. &nbsp; “I am thrilled that I got a degree from such a renowned university and completed my post graduation securing high marks,” &nbsp;says one of the gold medallists of ICA.</p>
<p>
	ICA is a partner institution of IGNOU which is one of the most popular educational institutions in India, offering inclusive education to students since its establishment in 1985.Being one of the pioneers in Open and Distance Learning (ODL) in Nepal, ICA has been actively involved in resource development and research and publications related to the ODL system. So far, ICA has helped thousands of students get internationally acclaimed degrees.Students who want flexibility in study are highly attracted by distance–learning programmes, which often rely on pre–prepared study materials instead of lecturers on a daily basis.&nbsp;</p>
<p>
	<img alt="ICA Gives Flavours of Openness" height="308" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/business_education_jue2013_ics_classroom(1).jpg" style="margin:0 10px 0 0;" width="595" /></p>
<p>
	ICA presently offers 44 different Academic, Value Added and Awareness programmes through ODL mode in Management, Humanities &amp; Social Science, Tourism, Computer Science, Journalism and Mass Communication, Education, Rural Development, Health Science, Social Work, Gender and Development Studies, Extension and Development Studies, Continuing Education etc. Currently, the cumulative student strength of ICA is more than 1200. The learners enrolled at ICA are freshers or professionals from diverse fields such as hospitality, financial institutions, telecoms, corporate houses, embassies and diplomatic agencies etc. ICA also offers such programmes in collaboration with government and non government agencies through an arrangement of programme specific Work Centres and a strong network of Learner Support Centres located in different parts of Nepal.</p>
<p>
	<strong>Premium courses of IGNOU:</strong></p>
<p>
	MBA/Management Programme aimed at graduates from any stream who may/may not be working but would like to pursue a career in Management. &nbsp;</p>
<p>
	MEG aimed at providing learners with a sound base in language as well as exposure to a wide range of literature, with options for specialisation in a particular area. The learners are expected to develop confidence in their critical and analytical abilities.</p>
<p>
	MCA aimed at preparing graduate students for productive careers in software industry and academia by providing an outstanding environment for teaching and research in the core and emerging areas of the discipline.</p>
<p>
	MARD or MA Programme in Rural Development (MARD) is designed to include such diverse academic contents that are essential in the making of this discipline in the Indian Context. A critical component of this Programme is dissertation based on empirical research in rural areas. The Programme will be useful for personnel working in various Govt. Departments/agencies, NGOs, Cooperatives, Banks and other institutions engaged in rural transformation. It will also be beneficial for fresh graduates interested in pursuing careers in the discipline of rural development.</p>
<p>
	PGDJMC or Post-Graduate Diploma in Journalism and Mass Communication provides opportunities for working media personnel to enhance their knowledge and skills for their professional development</p>
<p>
	B. Ed. aimed to systematize experiences and strengthen the professional competency of in-service teachers, to imbibe the knowledge and develop understanding of various methods and approaches of organizing learning experiences of secondary school students, to develop skills required in selection and organizing learning experiences, to understand the nature of the learner and the learning processes, to develop skills required for dealing with the academic and personal problems of learners, etc.</p>
<p>
	BCA aimed at opening a channel of admission for computing courses for students, who have done the 10+2 and are interested in taking computing/IT as a career. After acquiring the Bachelor’s Degree (BCA) at IGNOU, there is further educational opportunity to go for an MCA at IGNOU or a Master’s Programme at any other university/institute. Also, after completing BCA Programme, a student should be able to get an entry level job in the field of Information Technology or ITES.</p>
<p>
	BTS aimed at providing knowledge, competence, and skills in the professional area of tourism at the Bachelor’s Degree level. This programme, like other Bachelor’s Degree Programmes, can be completed in three years.</p>
<p>
	BA or Bachelors Degree Programme which admits students from both formal and non-formal streams. The non-formal stream consists of those students who have not cleared 10+2 or an equivalent exam. To get admitted to IGNOU’s degree programme, they have to pass its Bachelor’s Preparatory Programme (BPP) first.</p>
<p>
	B. Com., in which students without a formal qualification of 10+2 or its equivalent can also seek admission and they can study at their own pace and convenience over a period of three to six &nbsp;years.</p>
<p>
	Students also get basic knowledge in the core areas of humanities, social sciences, computers and science &amp; technology as there are some compulsory foundation courses. Besides selective courses in commerce there is flexibility to choose courses from a wide range of other disciplines.</p>
<p>
	DCE or Diploma Programme in Creative Writing in English provides understanding, skills and professional knowledge about the art of writing and develops the creative ability of those interested in a professional career as a freelance writer. The curriculum is structured to impart instruction in progressive stages so as to ensure that a learner can assimilate information about a writer’s art and develop his/her creative ability. This Programme includes training in imaginative writing skills in relation to feature articles (women’s issues, book reviews, etc), writing short stories, and scripts for TV/Radio, and writing poetry.</p>
<p>
	DTS, which provides the learners with the facility to specialize in the chosen operational areas in tourism studies and helps them acquire the associated skills.&nbsp;</p>
<p>
	BPP, which is a Programme offered to those students who wish to pursue a Bachelor’s Degree of IGNOU but do not have the essential qualification of having passed 10+2. Without such a qualifying certificate, these students are deprived of higher education. To enable such students to enter higher education stream, IGNOU has designed this preparatory programme.&nbsp;</p>
<div>
	<hr />
</div>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>‘We plan to add more programmes’</strong></p>
<div>
	<strong style="font-size: 12px;"><img alt="Biswajit Mukherjee, Chairperson / MD ICA" height="315" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/business_education_jue2013_ics_chairperson_biswajit.jpg" style="float:left; margin:0 10px 0 0;" width="200" />How long have been the journey of ICA in Nepal and its association with IGNOU?</strong></div>
<div>
	<p>
		ICA was established 16 years ago in 1997. We are associated with IGNOU since 2002.&nbsp;</p>
	<p>
		<strong>What are milestones of this journey, most memorable moments or developments?</strong></p>
	<p>
		First, induction meeting for the 1st Batch of 22 learners of IGNOU from Nepal that was held in January 2003 at Dharan. It marked the start of IGNOU’s journey in Nepal. We owe thanks to all the 22 first-batch learners who believed in us though we did not have any official recognition from the government back then.&nbsp;</p>
	<p>
		IGNOU awarded us the Best Overseas Partner Institution 2010 for the best services at the 22nd Convocation of the university held on April 2, 2011. Recently, we received the Best Overseas Partner Institution 2013 Award for the Best Services from the university &nbsp;at the 26th Convocation held at IGNOU headquarters in New Delhi on April 12, 2013 which was provided by the President of India, H.E. Pranab Mukherjee. Our hard work finally paid off; ICA’s association with IGNOU has grown stronger and stronger. We are now more determined and motivated to providing better services to our learners.</p>
	<p>
		<strong>You offer both Degree and Diploma education. How do they differ in content and status?&nbsp;</strong></p>
	<p>
		Degrees are more academic in nature; the curriculum is so structured that the person undergoing the course is provided an overview of several subjects apart from one subject that the person may be interested in exploring further for both career and academic interests. It is of longer duration like 2-3 years. Diplomas focus on getting a person trained and qualified in a particular business or trade. Some of them even include a short stint of apprenticeships and on-the-job training. They are of shorter duration - maximum one&nbsp;<span style="font-size: 12px;">to one and a half years.</span></p>
	<p>
		<strong>Are these degrees equivalent to those from TU and KU in content, legality and industry recognition?</strong></p>
	<p>
		Yes all our degrees are equivalent to those from TU, KU and other universities of Nepal. Our centre is also approved by the Ministry of Education, Government of Nepal. I also take this opportunity to inform our readers that IGNOU degrees have been enjoying global recognition much before they were recognized by Nepal. It is also one of the enlisted universities by the United Nations.</p>
	<p>
		<strong>What are teaching and evaluating methods, tools and systems you use?&nbsp;</strong></p>
	<p>
		Yes, we very strictly follow the evaluation tools and methods prescribed by IGNOU and have developed a few of our own systems too which we have implemented with IGNOU’s approval. Such measures have enhanced the quality of evaluation and feedback provided to the learners.</p>
	<p>
		<strong>Who are your faculty?&nbsp;</strong></p>
	<p>
		Our faculties are the professors/ lecturers/ professionals associated with some of the leading universities or MNC’s of Nepal and India. We try to make sure that we have the best of the best faculties who are competent enough to handle the subject matter through the ODL system. We consider our faculties on a par and, in some cases, &nbsp;even more competent than the faculties of conventional universities or colleges on handling ODL system much better. &nbsp;</p>
	<p>
		<strong>What recognitions and accreditations does ICA have?</strong></p>
	<p>
		ICA is approved by the Ministry of Education, Government of Nepal. IGNOU degrees obtained through ICA are recognized by TU and KU. We are also the only member of the Asian Association of Open Universities (AAOU) from Nepal.</p>
	<p>
		<strong>What are your future plans?</strong></p>
	<p>
		We do have some big plans for the future. Now that we have been successful in establishing ourselves as one of the pioneer institutions for Open and Distance Education in Nepal, we plan to add more programmes relevant to our context and society each academic year. We have established Learner Support Centres (LSCs) at four different locations in Nepal and intend to establish more LSC in other parts of the country too so that more and more students from outside the valley can benefit. &nbsp;&nbsp;</p>
	<p>
		We are now quite seriously thinking to invest more in &nbsp;technology so that we can take education to the door steps of every Nepali. We are trying to establish a research centre in association with IGNOU. It’s been a long-standing request of ours with IGNOU in order to develop skilled human resource required for the ODL system, development of courses appropriate for the Nepali context and contextualization of some of the existing courses.</p>
	<hr />
	<div>
		 </div>
	<p>
		<strong>‘Ours is&nbsp;<span style="font-size: 12px;">learner-centric learning process’</span></strong></p>
	<p>
		<strong><img alt="Amit Giri, CEO, ICA" height="290" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/business_education_jue2013_ics_ceo_amit.jpg" style="float:left; margin:0 10px 0 0;" width="200" />How does one &nbsp;study without attending classes?</strong></p>
	<p>
		Open and Distance Learning is basically an arrangement which enables a learner to study at the time, place and pace of their choice according to their circumstances and requirements. Hence, attending a class is not an issue. Moreover, the learners after admission receive specially-designed materials called Self Learning Materials (SLM) from the university. The teacher is inbuilt. The learners can comprehend by just going through the SLM.&nbsp;</p>
	<p>
		To supplement the learner’s understanding of the subject matter, we organise Academic Counselling Sessions on Saturdays where learners get their queries answered and doubts cleared. Attending these sessions is, however, not mandatory.&nbsp;</p>
	<p>
		<strong>What is the difference between studying at a regular college and at an open university?</strong></p>
	<p>
		The basic difference is that in a regular college a learner has to attend classes where attendance is mandatory. It is a teacher-centric process for learning. There are restrictions of age, qualifications and physical presence. Costing is rarely done on cost-effective and efficient basis. In an Open University, physical presence is not mandatory. Ours is more learner-centric and provides a more flexible access to education. It is both cost-effective and efficient system for education. Multi-media and multiple methods are widely used.</p>
	<p>
		<strong>Are the degrees of open universities recognized and accepted by the industry?</strong></p>
	<p>
		Yes degrees of IGNOU obtained through ICA are recognized in Nepal and globally. A number of our graduates are absorbed in Nepal and abroad. The latest research shows that in countries like the UK, Australia, and the United States, graduates from Open Universities are in demand in the job market. The degrees are recognized and accepted universally. In Canada the degrees of IGNOU are assessed and recognized by the International Qualifications Assessment Service (IQAS) and it is one of the universities listed by the United Nations.</p>
	<p>
		<strong>What is the evaluation mechanism?</strong></p>
	<p>
		Evaluation of learners is done i) through assignments which carry 30 per cent weight in the final grades of the leaner. ii) On the basis of an examination conducted at the expiry of the minimum duration prescribed for the concerned course called Term End Examination (TEE) which carries 70 per cent weight towards the final grades of the learner. iii) The University may also prescribe courses, specific project works, field work and practical assignments for the learners.&nbsp;</p>
	<p>
		<strong>Where are the Term End Exams held?</strong></p>
	<p>
		They are generally held in the month of June and December every year. At present, there are two exam centres in Nepal i) Exam Centre Code: 9601, Biratnagar ii) Exams Centre Code: 9602, Kendriya Vidyalay, on the premises of the Embassy of India, Kathmandu. Exams at both centres are conducted under the overall supervision of the Embassy of India. One can also take the exams from centres in 43 countries and through the Indian missions in countries with no IGNOU centres.</p>
	<p>
		<strong>Why do you at all have entry restrictions in an ‘Open System’?</strong></p>
	<p>
		The University is concerned about the acceptability of students in society hence they have to ensure equivalence of the degrees/diplomas of IGNOU with that of the conventional universities. So, they have to keep restrictions, e.g. one has to be a 10+2 for joining BA/B.Com/BSc, but that 10+2 need not be with a threshold marks. In other words, restrictions are there but they are minimal</p>
	<p>
		<strong>We have heard that one can graduate from IGNOU even without the 10+2 education. Is it really possible?</strong></p>
	<p>
		&nbsp;Yes, if you are 18 or above, you may join our Bachelor’s Preparatory Programme (BPP). It is a six- month programme where you have to select any two from three preparatory courses in social sciences, commerce and mathematics. If you qualify, you may join Under Graduate (Besides Science Streams), short-term skill development and value-added programmes and any academic programme of IGNOU for which (10+2) is the minimum educational requirement.&nbsp;</p>
	<p>
		<strong>Does it mean that BPP is equivalent to 10+2?</strong></p>
	<p>
		<span style="font-size: 12px;">Not at all. It is only an enabling mechanism (bridge course) for joining graduation and some other programmes of IGNOU by those who for some reason or the other had missed the opportunity of completing school or higher education.</span></p>
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	<strong><br />
	</strong></p>
<p>
	<strong>By Dr A K Sen Gupta</strong></p>
<p>
	The higher education system and institutions operating therein are passing through a great crisis of identity. The situation is more or less equally turbulent in all parts of the world. The most important stakeholders i.e. the students are often terms as Gen Y whose attitudes and attributes are at complete variance with those of Gen X i.e. the earlier generation. The differing and rising expectations of this new generation from the system in general and society at large call for different types of stimulus so that the response is positive. The Gen Y students are often with unexpected demands and fathomless expectations; they are restless and continuously looking for something different, difficult and complex. Domino effect is quite visible in terms of tangible gains and short-term material benefits.&nbsp;</p>
<p>
	Consequently, there are several problems that are encountered by higher education institutions (HEIs). First, since majority of the teachers are from earlier generation, it is difficult for them to appreciate &amp; empathize with students of Gen Y as regards their attitude to life including their behaviour in class room. Second, the conflicting value systems of both the teachers and taught (two different generations) many a times give rise to situations of misunderstanding, if not confrontation. And finally, Generation Y students do not perceive any value addition in their personal as well as professional lives from Gen X teachers as they feel that the competencies of earlier generation may not be useful in developing the skill sets required for 21st Century. The resultant effects are sometimes disastrous: confrontation, alienation, disinterest in studies, absenteeism, among others. My interaction with students and faculty from a large number of HEIs in different parts of the developing world shows a disturbing trend of increased misunderstanding between the teachers (Gen X) and students (Gen Y).Being the centres of learning, the HEIs must foster a proper and conducive environment of understanding between the teachers &amp; learners where teachers enjoy teaching and students enjoy learning. Only such a climate can breed innovation and lay foundation stone for the economic and social growth of the country.</p>
<p>
	In such an environment, the only solution lies in empowering the students of the HEIs where they are involved in all decision making processes of managing the respective HEI. The existing emotion of alienation arises from the feeling of being supervised &amp; guided by people who, according to them, are not competent being from a generation that does not understand their values &amp; feelings. Therefore, the best way to solve this complex problem is to create an institutional mechanism whereby the students take their own decisions as regards their destiny inside the HEI. These include:</p>
<ol>
	<li>
		<strong>What should be taught?<br />
		</strong></li>
	<li>
		<strong>How it should be taught?<br />
		</strong></li>
	<li>
		<strong>Who should teach?<br />
		</strong></li>
	<li>
		<strong>What types of competencies / skill sets they would like to develop for themselves?<br />
		</strong></li>
	<li>
		<strong>What types of external interventions are needed to develop such competencies?<br />
		</strong></li>
	<li>
		<strong>What type of learning environment they would like to have?<br />
		</strong></li>
	<li>
		<strong>What facilities they would like to have?<br />
		</strong></li>
	<li>
		<strong>How much fees are desirable considering all the facilities?<br />
		</strong></li>
</ol>
<p>
	<span style="font-size: 12px;">This essentially means that the students should decide what is best suited for them. The idea is to augment the student engagementthrough empowerment in the learning &amp; administrative processes so that they becomemore responsible as well as accountable.The axiom is: let students (in close coordination with teachers) run the institution and decide for themselves what is best for them. It is parallel to employees running a company.&nbsp;</span></p>
<p>
	The ideas suggested are indeed revolutionary in nature but worth implementing to bring down the sense of alienation of students from the educational system. To sum up, what is being suggested is not a mere structural change in managing HEIs but a paradigm shift in running educational institutions where the consumers co-create the brand and its value propositions.</p>
<p>
	<strong>Couple of issues become critical in this regard:</strong></p>
<ul>
	<li>
		Students are expected to be mature and responsible to take upon the onus of partly managing and running the institution both at macro and at micro level. Student Councils or Student Unions have been successful instruments / models in this regard in many educational institutions in different countries. But, these Councils in many places are either political or ineffective. What is needed is to make them active and involved in decision making processes. The experimentation of senior responsible positions like Vice Principals (or Deputy Directors) being created from among the students on a rotation basis, may be tried.</li>
	<li>
		Teachers and managements of the HEIs should accept this experimentation on a serious note. As this would make the system open and transparent, it might create volatility at least to begin with.&nbsp;</li>
	<li>
		In such a scenario there should be a person designated as Mentor who is acceptable to all in case of any difference of opinion and who may be able to take care of all possible disputes.</li>
	<li>
		Simultaneously, there should also be the concept ofreverse mentoring whereby the Gen Y can guide / mould the shape of things to come through proper interaction with Gen X teachers / management, the ideas / solutions coming from the former for a change and implemented by the latter.&nbsp;</li>
</ul>
<div>
	<span style="font-size:10px;">Authored by Dr A K Sen Gupta, Founder and Convener, Higher Education Forum (HEF), the largest on-line community of higher educational professionals on a global scale. His past assignments include Director of leading B-Schools in India, World Bank Consultant and Professor at National Institute of Bank Management (NIBM), Pune, India.</span></div>
<div>
	<span style="font-size:10px;"><br />
	</span></div>',
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		'Article' => array(
			'id' => '1070',
			'article_category_id' => '84',
			'title' => 'Aptech Group: Focusing On IT Education',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	Starting about 18 years ago in Nepal with Aptech Computer Education (ACE), Aptech Group already has four computer education centres in Kathmandu. It also has Arena Multimedia centre in Kathmandu, which provides education on animation and multimedia. Arena is a division of Aptech. Now the company is preparing its expansion outside Kathmandu through franchisees. &nbsp;&nbsp;</p>
<p>
	“Talks are on the progress with investors in different cities and the details are being worked out,” says Aptech Master Franchisee in Nepal Shobha Kunwar.&nbsp;</p>
<p>
	<img alt="Shobha Kunwar, Aptech Master Franchisee in Nepal" height="289" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/information_technology_june2013_aptech_group_master_franchisee_shobha.jpg" style="float:right; margin:0 0 0 10px;" width="209" />Established in India in 1986, Aptech has by now presence in 40 countries across the world including Nepal and has a total of 1,308 training centres.&nbsp;</p>
<p>
	The group opened its first ACE in Nepal in 1995 and launched Arena Multimedia in 2001. According to Kunwar, Aptech has already trained over 50,000 people in Nepal and employs 120 people in the country.</p>
<p>
	<strong>Aptech Group in Nepal</strong></p>
<ul>
	<li>
		<strong>New Baneshwar – ACE</strong></li>
	<li>
		<strong>Kantipath – ACE and ARENA MULTIMEDIA</strong></li>
	<li>
		<strong>Kumaripati – ACE</strong></li>
	<li>
		<strong>Pokhara – ACE</strong></li>
</ul>
<p>
	<strong>Aptech Group</strong></p>
<p>
	The official website of Aptech Group claims, it has provided IT training to more than 6.5 million students in over 40 countries. It is also claimed to be the first IT training organisation in Asia to get ISO 9001 certification. The group has Headquarter in Mumbai, India.</p>
<p>
	Range of products by Aptech Group&nbsp;</p>
<ul>
	<li>
		<strong>1996 - &nbsp;Arena Multimedia, offers animation and multimedia</strong></li>
	<li>
		<strong>2006 – Acquired Avalon to gain an entry into the aviation industry</strong></li>
	<li>
		<strong>2007 – Entered Hardware and networking through N-power now rebranded as Aptech hardware and networking Academy</strong></li>
	<li>
		<strong>2009 – Started English language training</strong></li>
	<li>
		<strong>2010 – Acquired MAAC leading to become the leader in the Indian animation and multimedia training</strong></li>
</ul>
<p>
	<strong>Products&nbsp;</strong></p>
<p>
	Courses offered by ACE are related to all areas of software development. Aptech Certified Computer Professional (ACCP) is billed as flagship career program of the company. “It is a comprehensive IT course, which equips the student with advanced programming knowledge to build enterprise solutions with extensive hands on training and project work, giving students real world experience,” explains Kunwar.&nbsp;</p>
<p>
	<strong>ACCP Features:</strong></p>
<ul>
	<li>
		<strong>Technology platforms from Sun Java and Microsoft<br />
		</strong></li>
	<li>
		<strong>Emphasis on coding and source code documentation standards<br />
		</strong></li>
	<li>
		<strong>Upgraded Java and .NET technologies<br />
		</strong></li>
	<li>
		<strong>Projects/ e-projects<br />
		</strong></li>
	<li>
		<strong>Improved ‘Blended Learning’ delivery methodology<br />
		</strong></li>
	<li>
		<strong>Intensive practice and Assessment Laboratory workshops<br />
		</strong></li>
	<li>
		<strong>Open source Technology<br />
		</strong></li>
</ul>
<p>
	<span style="font-size: 12px;">Arena Multimedia, a sister body of Aptech Group offers animation and multimedia course ranging from three months to two years career courses and has presence in 20 countries. It has tie ups with Macromedia and Adobe.</span></p>
<p>
	Arena has been shaping the multimedia industry equipping students with the finest skills and state-of-art technologies in multimedia, says Kunwar. According to her, Arena students are making exciting career in the fields of advertising, gaming, entertainment, 2D and 3D animation, print publishing, web designing and development, among others.&nbsp;</p>
<p>
	“Aptech’s semester end online examination system is designed to offer comprehensive, secure and consistent online testing,” says Kunwar. “Evaluation happens in real time and answers are automatically encrypted for QA control.”&nbsp;</p>
<p>
	According to her, once a student completes a career course with Aptech their credit can be transferred to an international university with which the company has tie up. This transfer is available in Bachelor’s final year. Among such universities are Royal Melbourne Institute of Technology, University of Portsmouth, Middlesex University and Mahatma Gandhi University. &nbsp;</p>
<p>
	<strong>Future Strategy</strong></p>
<p>
	As the Nepali job market is becoming more and more competitive, the demand for IT education is growing as a result. This provides a good opportunity to the IT education provides to expand their business in Nepal.&nbsp;</p>
<p>
	Kunwar says, “Nepal has huge potentiality for IT education and the market has accepted the importance of IT in every field. Hence, we are planning to open education centres in all the major cities of the country with variety of courses.”</p>
<p>
	According to her, one component of the expansion drive is to launch Cambridge English Language Teaching (ELT) next year in Nepal. &nbsp;ELT will offer wide range of English Language course including spoken English, accent training, foundation courses, IELTS and TOEFL preparation.&nbsp;</p>
<p>
	<strong>CSR</strong></p>
<p>
	As part of Corporate Social Responsibility, Aptech is planning to provide computer education for rural kids. “Besides this, the company has plans for orphanages as well. Under this, Aptech will be donating books, computers and other materials in near future,” said Kunwar.&nbsp;</p>
<hr />
<p>
	<strong><span style="color:#f00;">SWOT</span> Analysis</strong></p>
<p>
	<b>Strengths&nbsp;</b></p>
<ul>
	<li>
		<b>Experienced of nearly three decades</b></li>
	<li>
		<b>Link up with world renowned institutions</b></li>
	<li>
		<b>Presence in 40 countries</b></li>
</ul>
<p>
	<b>Opportunities</b></p>
<ul>
	<li>
		<b>Growing market</b></li>
	<li>
		<b>Rising pool of educated people who are seeking IT education</b></li>
	<li>
		<b>Awareness of IT education</b></li>
</ul>
<p>
	<b>Threats</b></p>
<ul>
	<li>
		<b>Political uncertainty</b></li>
	<li>
		<b>Power cuts</b></li>
</ul>
<div>
	<b><br />
	</b></div>',
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			'article_category_id' => '78',
			'title' => 'What Happens When We Treat The Country First And Self Interest Later? A True Revolution',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img alt="Buddha's Delight" height="111" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/budda's_delight_imageJune2013.jpg" style="float:left; margin:0 10px 0 0;" width="100" />Today people across globe are closely watching a country. The notion about that country revolves around a tag of Corruption, Nepotism and Lawlessness. It faced decades of political turmoil and sometimes complete paralysis of normal life. Being a young country, with 50% population below the age of 30 and bordering a large economy, there were significant migrations for greener pastures. Though the population grew moderately and the middle class was emerging as power house, country forecast was bleak due to radical syndication and rampant corruption. It is Mexico I am talking about.&nbsp;</p>
<p>
	All the negative images of Mexico were true till some years back. It was facing problems from poverty, drug cartels, political instability, syndication, strikes – you name it. Then a revolution happened with a paradigm shift on people’s mindset. It was a silent revolution without any tag of any of the “Isms”. One day Mexicans decided that they have had enough. They realized that either they have to move on or they will be moved aside and their future cannot be defined by handicaps like Corruption and Political instability. They woke up to change the Image of Mexico.&nbsp;</p>
<p>
	And look at the result. Financial Times reported on 19th September 2012 that Mexican exports surpassed the combined export of the rest of the Latin America. Chrysler uses their Mexico base to supply to the Chinese market. Chinese market – you have heard it right!!!</p>
<p>
	How this has happened? It is the power of collective wisdom. When society decides to change together – the result can be awesome. Suddenly people do not want to be held hostage by radicalism. It’s a Mexican Wave – a Tsunami which gripped the country. Political parties were forced to act to avoid extinction. Waking up from the political coma, Mexico’s three major political parties decided to work together and signed a “Pact for Mexico”. &nbsp;</p>
<p>
	Mexico still has huge governance problems to fix; nobody claims otherwise. Even then, the change was profound and clear. As American Journalist Dorothy Day said - “The greatest challenge of the day is: how to bring about a revolution of the heart, a revolution which has to start with each one of us”. In that way, Mexico went in the right path. Acknowledging a problem is half the cure. &nbsp;</p>
<p>
	In recent times Mexico signed 44 free trade agreements; more than any country in the world. It is more than double than China and four times than Brazil at the same period; shocking but true. With the greatly increasing number of graduating engineers and skilled laborers in recent times, slowly they are gaining manufacturing market share back from Asia and attracting increasing global investment. &nbsp;By the way, my sources say that in SAARC region, number of Engineering and Medical students in USA from Nepal is more than that of Pakistan and Bangladesh put together despite of Nepal’s population being only a fraction of them. So patient is alive and kicking; Indeed. &nbsp;</p>
<p>
	But – we are discussing Mexico. What happened there? One trend became clear. Now, an average Mexican citizen can judge performances on real time. They can inform the authority about violations or infrastructure failure and government mends things. How quickly things are being fixed are also being tracked online. This gives them power. This power sets pressure points to force changes. Thus, Mexico liberalized commerce, fixed accountability and democratized Media. Basically, they democratized the democracy itself. Democracy in Mexico is not restricted to only a handful of people. Authorities and Government became accountable and answerable to all.&nbsp;</p>
<p>
	As per World Bank, in 2 years by end of 2011, Per Capita GDP of Mexico increased from US$7852 to US$10047 while India moved from US$1127 to US$1489 and China from US$3749 to US$5445. It means a Country with 116Mill population &amp; 1.1% growth rate increased their per capita exposure to goods by 28% in 2 years. As per latest figure - Mexican inflation is around 4% and unemployment rate 5%. 1.758 Trillion US$ Mexican GDP (based on PPP) gets a whopping 23% contribution from Industry!! Do we need more argument in favor of the power of people and the might of collective Wisdom?</p>
<p>
	Is this a revolution? Revolution came from Latin word “Revolutio”, which means “a turnaround”. Revolution is a fundamental change in structures that takes place in a relatively short period of time. It does not mean shutting down things or politicizing events or organizing strikes. Revolution means positive changes for the betterment of all member of the society. Revolution occurs when fellow citizens become accountable and behave responsibly. It is a turnaround which has to start with each Individual through small action. Even a handful of people can start this momentous change. As Margaret Mead said - “Never believe that a few caring people can’t change the world. For, indeed, that’s all who&nbsp;<span style="font-size: 12px;">ever have.”</span></p>',
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	Nepal is geared up to sign a Memorandum of Understanding (MoU) with concerned companies for the construction of four airports. According to Minister of Ministry of Culture, Tourism and Civil Aviation Ram Kumar Shrestha, the MoU will be signed within mid-December this year. Shrestha said so in a programme organized by Media International on May 18th.&nbsp;</p>
<p>
	He informed that MoU will facilitate the construction of second international airport in Nijgadh, Pokhara Regional International Airport, Gautam Buddha Regional International Airport in Bhairahawa and extensive improvement of Tribhuvan International Airport.&nbsp;</p>
<p>
	Shrestha also said that he will be playing an instrumental role in solving the problems of Nepal Tourism Board, including the appointment of CEO in the Board.&nbsp;</p>',
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			'description' => 'Nepal is geared up to sign a Memorandum of Understanding (MoU) with concerned companies for the construction of four airports. According to Minister of Ministry of Culture, Tourism and Civil Aviation Ram Kumar Shrestha, the MoU will be signed within mid-December this year.',
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			'content' => '<p>
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<p>
	Asian Development Bank (ADB) will be spending Rs 7 billion for the improvement of Tribhuvan International Airport (TIA). The major portion of the amount will be spent in the development of infrastructures. According to Punya Raj Shakya, Project Director of Tribhuvan International Airport Improvement Project, Rs 5.25 billion is allocated for the physical infrastructure development. “The work is already in the process with a plan to complete it within three years,” said Shakya. Under the programme, airport’s runway will be widened by 300 meters, the regular work procedure of Civil Aviation Authority of Nepal will be divided and passenger’s waiting area and parking area will be increased by double. The amount will also be spent in installing Visual Approach Guidance System in Lukla airport to facilitate landing. The system will be installed in Tribhuvan International Airport and Lukla airport by December.</p>
<p>
	TIA currently has only two wide bodies and seven narrow bodies parking that can accommodate only nine aircrafts at once. This has been causing continuous delay in international flights and expansion of the parking area was needed. Under the prograame, 55 CCTVs, three X-ray machines will also be added and the lighting system will also be improved. The construction of internal terminal building is also in the process which will cost around 100 million rupees. &nbsp;Out of ADB’s total assistance, USD0 70 million is provided as loan and USD 10 million as grant.&nbsp;</p>
<p>
	<strong><img alt="Tribhuvan International Airport" height="163" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/civil_aviation_june2013_TIA_adb(1).jpg" style="margin: 0 10px 0 0;" width="595" /><br />
	</strong></p>
<p>
	<strong>A Glance at TIA Progress</strong></p>
<div>
	<p>
		<strong>1949</strong> – Nepal started its first aircraft with the operation of single- engine Bonanza aircraft.</p>
	<p>
		<strong>1956</strong>- King Mahendra renamed Gauchar Airport as Tribhuvan Airport.</p>
	<p>
		<strong>1964</strong>- Tribhuvan Airport again renamed as Tribhuvan International Airport.</p>
	<p>
		<strong>1967</strong>- The runway was extended from 3,750 feet long to 6,600 feet and the first jet aircraft Boeing 707 flew</p>
	<p>
		<strong>1968</strong>- With Thai Air International jet, the regular flight started fleeing</p>
	<p>
		<strong>1972</strong>- ATC services taken over by Nepalese personnel from Indian technicians</p>
	<p>
		<strong>1975</strong>- Runway extended to 10,000 feet long</p>
	<p>
		<strong>1989</strong>- Boeing 747 started and new ITB development process completed</p>
	<p>
		<strong>1995</strong>- Domestic terminal building and apron area expansion</p>
	<p>
		<strong>2002</strong>- Establishment of new Cargo building and expansion of ITB&nbsp;</p>
	<p>
		<strong>2009</strong>- International parking and domestic taxi way extension&nbsp;</p>
	<p>
		<strong>2010</strong>- TIA golden gate was changed to its new look. &nbsp; &nbsp;</p>
	<p>
		 </p>
</div>',
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			'created' => '2013-06-08',
			'modified' => '0000-00-00',
			'keywords' => 'ADB to spend Rs 7 billion for TIA Upgradation , Civil Aviation, Airlines, TIA, Tribhuvan International Airport, kathmandu, New Business Age, June 2013',
			'description' => 'Asian Development Bank (ADB) will be spending Rs 7 billion for the improvement of Tribhuvan International Airport (TIA). The major portion of the amount will be spent in the development of infrastructures.',
			'sortorder' => '953',
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		'Article' => array(
			'id' => '1083',
			'article_category_id' => '60',
			'title' => 'Oman Air Winner Of Middle East’s Leading Airline Economy Class',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Oman Air, the national carrier of Oman has been announced as the winner of the ’Middle East’s Leading Airline Economy Class’ category at the World Travel Awards 2013.&nbsp;</p>
<p>
	The awards that recognise the performance the airline has demonstrated over the last 12 months are voted for by travel and tourism professionals worldwide. Oman Air’s Chief Executive Officer Wayne Pearce attended the ceremony held on 5th May at Le Royal Meridien Beach Resort and Spa in Dubai.</p>
<p>
	“Oman Air is honoured to have won the award in this highly competitive category, and against such worthy competitors on the eve of the launch of ATM 2013,” said Pearce.&nbsp;</p>
<p>
	Oman Air has won many international industry award in recognition of its recent developments, including the introduction of new aircraft, the inauguration of a range of new destinations, the unveiling of spacious and luxurious aircraft interiors – including its A330 business class seat, named as the World’s Best at the Skytrax 2012 World Airline Awards - and the launch of state-of-the-art in-flight entertainment systems.&nbsp;</p>
<div>
	 </div>',
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			'created' => '2013-06-08',
			'modified' => '0000-00-00',
			'keywords' => 'Oman Air Winner of Middle East’s Leading Airline Economy Class, Civil Aviation, New Business Age, June 2013, Aeroplanes, Flights, Middle East, Airlines',
			'description' => 'Oman Air, the national carrier of Oman has been announced as the winner of the ’Middle East’s Leading Airline Economy Class’ category at the World Travel Awards 2013.',
			'sortorder' => '952',
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	(int) 3 => array(
		'Article' => array(
			'id' => '1082',
			'article_category_id' => '31',
			'title' => '‘We Believe In Providing Solution Which Is Safe, Comfortable And Sustainable’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Sanjeev Seth is the General Manager and Sales Leader for Trane Commercial Businesses in SAARC Markets that form part of the Climate Solutions sector at Ingersoll Rand. Trane is Ingersoll Rand’s strategic brand and world leader in Heating, Ventilating, Air-Conditioning and Refrigeration (HVACR) industries that serve commercial, institutional, hospitality, industrial and pharma market. Seth is responsible for driving innovation and growth of Trane business by understanding customers’ needs and developing solutions to meet customer expectations in SAARC countries. Siromani Dhungana of New Business Age talked with him during his recent visit to Nepal.</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>What is the purpose of your visit?</strong></p>
<p>
	Trane is one of the leading brand in heating ventilation and air conditioning and we are now trying to increase our presence in Nepal market and we appointed MAW Engineering Pvt. Ltd as business partner for the entire Nepal. We see Nepal as a very strategic market, it’s definitely grow substantial for near future. Trane is a brand which caters to HVAC system, service and solutions for both commercial and industrial segment. We see a lot of opportunity for providing air conditioning solution in this market. So we are here to meet customer and establish relationship and engagement with the customer.</p>
<p>
	<strong>What sort of strategies has Trane adopted to target the Nepali market?</strong></p>
<p>
	As we know, energy is becoming more and more expensive and it is important to have solutions which are environmentally efficient and sustainable. We believe in providing solution which are safe, comfortable and sustainable. The products which we are launching here are going to be very energy efficient and use gases which are environmental friendly with latest technology.</p>
<p>
	<strong>With a growing interest of customers in appliances such as AC and refrigeration, there must also be competition in the market. How has Trane made sure that its market share does not get reduced by cheaper competitors?</strong></p>
<p>
	There are a lot of choices available to customers and Trane believes in partnering with customers to find the right choice. We have wide range of products available from small conditioners to huge centrifugal chillers. The product portfolio Trane manufactures, is able to meet diverse needs of the customers. They are highly energy efficient and reliable. And there is a very strong service network of Trane service technicians. We partner with the customer to provide the right kind of solutions.</p>
<p>
	<strong>With new ideas coming in each day for every sector of technology, how do you brainstorm ideas for a new and refined product?</strong></p>
<p>
	It is the regular and continuous process. We continue to innovate new products and technology. In India we have our research and development centres for this.&nbsp;</p>
<p>
	<strong>How do you see market of air conditioner in South Asia and especially in Nepal?</strong></p>
<p>
	The economy in Nepal is definitely grown and there is a need for providing the right kind of solution for customers in Nepal. The customers in Nepal will require more solution from Trane. Trane is very bullish about the Nepal market. Our partner here, MAW, is in the right position to offer the right products and solution to market.</p>
<p>
	<strong>Would you please tell us about the major unique features of the Trane brand?</strong></p>
<p>
	This year Trane has completed its hundred years. Now we are committed as well as geared up for the next century. Our products and services are unique in the sense that they are able to provide energy efficient solutions, are sustainable and some of the major installation in the world use Trane products.&nbsp;</p>
<p>
	We also have building automation systems which can integrate the entire equipment of the building. Overall we have wide portfolio which meets the diverse needs of customers.</p>
<p>
	<strong>What are your major branding strategies?</strong></p>
<p>
	Today the customers are looking for not just the products. It should be backed by proper services as well. The product itself should be reliable and of good quality. Trane is very well established in commercial segments of the markets and is recognized as a very strong and reliable brand. It continue to focus on the same values of providing reliable and high quality products and it will be backed by strong after sale services with our partner here, MAW, and we also hope that our new products and innovations will address the need of the customers.</p>
<p>
	<strong>What is the current market share of your products in Nepali market?</strong></p>
<p>
	We have been working with a lot of corporate house here since a long time and we see here a lot of opportunity and we are bullish about the future.</p>
<p>
	<strong>Where do you want to see Trane brands in Nepali market five years from now?</strong></p>
<p>
	We want to see Trane being recognized as a brand which can provide energy efficient and reliable and high quality products and entire systems and solutions of the costumers’ needs. And it should be a recognized as a brand which can actually help the customers on saving energy also. And Nepal is already struggling due to power outage. So any product or system which can save energy will help address the need of customers here. And our focus is energy efficient products at&nbsp;<span style="font-size: 12px;">reasonable price.</span></p>
<p>
	<span style="font-size: 12px;"><br />
	</span></p>',
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			'keywords' => 'Sanjeev Seth,General Manager and Sales Leader for Trane Commercial Businesses, Interview, Viviting Business people, Business Visitosrs, New business Age',
			'description' => 'Sanjeev Seth is the General Manager and Sales Leader for Trane Commercial Businesses in SAARC Markets that form part of the Climate Solutions sector at Ingersoll Rand.',
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	(int) 4 => array(
		'Article' => array(
			'id' => '1081',
			'article_category_id' => '31',
			'title' => '‘We Are Looking For A Long Term Relationship With The Nepali Market’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Ramesh Palagiri, managing director and CEO of Wirtgen India, was recently in Nepal to officially launch Hamm soil compactors in the Nepali market. Hamm products are manufactured in India, China and Germany using German technology by Wirtgen Group. Siromani Dhungana of New Business Age talked with him on the business prospects of Hamm soil compactors in Nepal.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>What are the products you are currently supplying in Nepal?</strong></p>
<p>
	We are supplying Hamm soil compactors. By the end of the year, we are coming up with a tandem roller. Because most of the roads are on hilly terrain, there is lot of hope for road recycling in Nepal and we have a very good solution for that: technology called cold recycling (very popular worldwide.) By this technology, roads can be rehabilitated.</p>
<p>
	<strong>What prospects do you see for your business in Nepal?</strong></p>
<p>
	In the last few years, the development activities in Nepal have gone down. So there are lots of possibilities for infrastructure to come up. We expect the market to grow in coming years. As of now, the market size is roughly 35-40 machines per year. We are looking for a long term relationship with the Nepali market.&nbsp;</p>
<p>
	<strong>Why to choose your products?</strong></p>
<p>
	We have 100 years of experience. We are leaders in road technologies, both for constructing new roads and for rehabilitating the existing ones. We have premium products in economic range. The consumer gets best value for money with our products. We have patented a three point articulation engine with clear and simple information displayed. So even a operator without much experience can handle it. It’s easy in maintenance and high in productivity.</p>
<p>
	<strong>How do you see the South Asian market?</strong></p>
<p>
	The South Asian market is vital for us. There is almost the same level of opportunity for us with similar competition. The market is growing and that is important too. Our target is to become market leaders.</p>
<p>
	<strong>What is the level of competition you face in Nepal?</strong></p>
<p>
	The level of competition is the same we face in India. There is a throat-cutting level of competition. We are selling premium products. Our market share is 35 percent now, our target is 40-45 percent by the end of next year. We are also focusing in good after sale services and spare parts to get close to the customer.</p>',
			'published' => true,
			'created' => '2013-06-08',
			'modified' => '2013-06-08',
			'keywords' => 'Ramesh Palagiri, managing director,CEO, Wirtgen India, Interview, Business Visitors, Visiting Business People',
			'description' => 'Ramesh Palagiri, managing director and CEO of Wirtgen India, was recently in Nepal to officially launch Hamm soil compactors in the Nepali market. Hamm products are manufactured in India, China and Germany using German technology by Wirtgen Group.',
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	(int) 5 => array(
		'Article' => array(
			'id' => '1080',
			'article_category_id' => '31',
			'title' => '‘We Are Expanding Business In Developing Countries’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Hideto Kawamura, Department Head, Overseas Sales Division of Yamaha Motor Pvt Ltd, India recently visited Nepal to officially launch Yamaha Ray, a new scooter from Yamaha. &nbsp;In his 10 years of career in Yamaha Motors, Kawamura has worked in various departments ranging from services to sales and marketing. He joined the company in 2002 as the In-charge of CKD export operation and marketing support for Indonesian Market products. He moved to India in 2012 and has been overseeing export from India. In an interview with New Business Age, Kawamura shared the expansion plan of his company in Nepal.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>Would you please describe the Ray Scooter that you just launched?&nbsp;</strong></p>
<p>
	The Ray Scooter is specially made for women. The height of the seat is lower than the competitors. Overall, it is very comfortable for female riders. &nbsp;On the other hand, the mileage of the Ray is the best among the scooters segment available in Nepal. And, it has better pick up. The scooter is good enough to ride for two people and it goes smoothly while climbing the slopes.</p>
<p>
	<strong>&nbsp;How do you find the demand of your product in Nepal?&nbsp;</strong></p>
<p>
	We see a great market for scooters in Nepal. Though our product is new in Nepali market compared to other products, we are confident that our product will be popular among the riders. The scooter market in Nepal is basically owned by other models like Dio from Honda. But our product is competitive enough to take on them. Ray scooter would win customer’s trust in every aspect; style, pick up, mileage and overall. I believe we will own around 20 per cent market share in Nepal in 2013/2014. We will try our best to achieve that.&nbsp;</p>
<p>
	<strong>What are the other products that you are planning to launch in Nepal?&nbsp;</strong></p>
<p>
	We are considering launching variation models of Ray scooter in Nepal in near future. But I cannot say more about it right now.</p>
<p>
	<strong>How are you expanding your business internationally?&nbsp;</strong></p>
<p>
	Today, Yamaha sells around 7 million units of two-wheelers a year all over the world including in Japan, USA and European countries. We are also expanding our business in developing countries like Nepal. &nbsp;Now, we have the largest market shares in South East Asia mainly in Indonesia, Thailand and Vietnam. And we are expanding our business in African countries.&nbsp;</p>
<p>
	<strong>How do you see the prospects of your business in Nepal?&nbsp;</strong></p>
<p>
	Until 2012 December, we sold around 12,000 motorcycles in Nepal. It will expand much more and our sales could see up to 40 per cent growth compared to previous year. We have a plan to launch another variation of scooter that will also contribute to the growth.&nbsp;</p>
<div>
	 </div>',
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			'modified' => '2013-06-08',
			'keywords' => 'Hideto Kawamura, Department Head, Overseas Sales Division of Yamaha Motor Pvt Ltd, Business Visitors, Visiting Business People, New Business Age, June 2013, interview',
			'description' => 'Hideto Kawamura, Department Head, Overseas Sales Division of Yamaha Motor Pvt Ltd, India recently visited Nepal to officially launch Yamaha Ray, a new scooter from Yamaha.',
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	(int) 6 => array(
		'Article' => array(
			'id' => '1079',
			'article_category_id' => '31',
			'title' => '‘We Are Confident About The Performance Of Our Products’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Hiroaki Ashizawa, Director of Mitsubishi Electric India Pvt. Ltd is also heading Living Environment Air condition division in India. Founded in 1921, Mitsubishi Electric is a leading company in manufacturing and sales of electrical and electronic products. Hiroaki has handled many international markets including USA, Europe and Asia Market and has 35 years of experience in HVAC. In an interview with New Business Age, Hiraoki shared about his business in Nepali market.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>Could you please highlight the reasons of your visit?</strong></p>
<p>
	I came here for a launching ceremony of our Air conditioner products in Kathmandu. Since I am supposed to assist and support the business in Nepal, I also wanted to visit Airtech, our business partner here in Nepal.&nbsp;</p>
<p>
	<strong>What are the products that you just launched?</strong></p>
<p>
	Recently, we launched two air conditioning series namely Mr. Slim Series and CITY MULTI VRF series in Nepali market. &nbsp;Mr. Slim is a series of room air conditioners for private houses and small offices while City Multi VRF Series is for commercial purpose suitable to corporate offices, banks, hospitals, hotels, shopping complexes, villas, apartments, etc. Both these series are widely accepted in global market. With these full ranges of world class products we ensure that Nepalese customers would get the best AC products.</p>
<p>
	<strong>Can you tell us the major unique features of the Mitsubishi Electric brand?</strong></p>
<p>
	We focus on Mitsubishi Electric Quality promising the best experience in our products, services, partnership and people. Apart from premium quality, energy efficiency, usage of environment friendly green refrigerant R-410A for our product range and our service quality are key features that ensure standards matching to the lifestyle with lesser environmental impact.</p>
<p>
	<strong>How are you expanding your products in the international market?</strong></p>
<p>
	We are one of the leading air conditioner companies in global market including South East Asia. We are now growing rapidly mainly in the countries like India, Nepal, Pakistan and Bangladesh. We are already market leaders in our inverter segment in USA, UK, Spain, etc. We also enjoy leadership status in many Asian countries including Thailand and Myanmar.</p>
<p>
	<strong>How do you see the prospects of your business in Nepal?</strong></p>
<p>
	We launched our products in Nepal nearly a year back. With these best products, we are aiming to be the market leader by the year 2015. Seeing the price competition, I believe Nepal is one of the hardest markets in South Asia. It seems very tough but still we are ready to fight and grab the market. We are confident about the performance of our products and I am sure the valued customers in Nepal would pay some premium for our quality products.</p>
<p>
	<strong>How can Nepal get benefit from these products?</strong></p>
<p>
	We sell DC inverter type Air Conditioners with after sales services in Nepali market. As DC inverter type Air Conditioner is energy saving product, it could be beneficial for reduction of energy consumption ensuring the lower operating cost.&nbsp;</p>
<p>
	<strong>What is your further plan regarding your business in Nepal?</strong></p>
<p>
	We are planning to launch the Hot Water Generating system- a highly efficient and eco friendly product especially suited for hotel business in Nepal. &nbsp;</p>',
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			'description' => 'Hiroaki Ashizawa, Director of Mitsubishi Electric India Pvt. Ltd is also heading Living Environment Air condition division in India. Founded in 1921, Mitsubishi Electric is a leading company in manufacturing and sales of electrical and electronic products.',
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	(int) 7 => array(
		'Article' => array(
			'id' => '1078',
			'article_category_id' => '31',
			'title' => '‘We Hope The Market For Our Business Grows Fast In Nepal’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Cyrus Khambata is the Chief Executive Officer at CDSL Ventures Ltd (CVL). &nbsp;He joined Central Depository Services Limited (CDSL) in 1999, the date of CDSL’s operation and currently offering his services as an Executive Vice President. CDSL is a leading securities depository in India. &nbsp;Previously, he served Bank of India as a Chief Manager for 20 years. Sushila Budhathoki of New Business Age talked with Khambata during his recent Nepal visit.&nbsp;</p>
<p>
	<strong>Excerpts:&nbsp;</strong></p>
<p>
	<strong>What brings you to Nepal this time?</strong></p>
<p>
	I am here for the inauguration of clearing and settlement system started by Central Depository &amp; Settlement Corporation (CDSC). I have been putting my effort to start the system for three years. I am here for technical assistance.&nbsp;</p>
<p>
	<strong>So, you had a meeting with brokers also?</strong></p>
<p>
	Yes, they had certain questions like how DEMAT operates, how the risks can be minimised etc. And we had to explain them.</p>
<p>
	<strong>Now the CDSC has come into full operation. How will it support the capital market of Nepal?&nbsp;</strong></p>
<p>
	In the physical settlement process, shares traded in the stock exchange have to be transferred manually. That takes a long time to change the ownership. With Dematerialisation (DEMAT), the shares get transferred to the respective stakeholders’ account immediately on the trading day so they can use it during emergency also. &nbsp;</p>
<p>
	<strong style="font-size: 12px;">How do you see the prospects of your business in Nepal?&nbsp;</strong></p>
<p>
	We hope the market for our business grows fast in Nepal. We will target big companies and have started the DEMAT services offered to the shareholders. So, that it would grow rapidly. People who are trading shares will prefer DEMAT because it is less time consuming. But the people who are not trading will take time to familiarize with DEMAT.</p>
<p>
	<strong style="font-size: 12px;">What are other infrastructures necessary for Nepali capital market?&nbsp;</strong></p>
<p>
	In the capital market, there are three large infrastructure providers. One is regulator who does a lot of monitoring, second is the exchange which offers trading facilities and the third one is depository which sets up the depository participants to cover the entire population. &nbsp;In India, there are 18, 000 depository centers covering 25,000 pin codes out of 27,000 pin codes in the country. State Bank of India provides DEMAT facilities from its 3000 branches among 10 -12 thousand branches.</p>
<p>
	So, like SBI, Bank of Kathmandu also can be the center for providing DEMAT facilities. It can offer this service from its 500 branches which will cover the entire country.</p>
<p>
	<strong style="font-size: 12px;">What are your suggestions to CDSC for providing services other than normal settlements?</strong></p>
<p>
	It can provide numerous services if permitted. One is e-voting service. It would help the shareholders to participate in the operation of the company that they own. For example, they can even electronically vote for the AGM even if they are not physically present to attend the programme.&nbsp;</p>
<p>
	Similarly, they can provide KYC (Know Your Client) services. To open a DEMAT account, you have to comply to the KYC rules. It is required by banks, insurance companies and telecom operators to name a few. All the documents need not be collected from the client in each and every step every time he/she transacts somewhere. So, CDSC can become a bank for KYC document and the client can just file his details once and for all for any organisation.&nbsp;</p>',
			'published' => true,
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			'keywords' => 'Business Visitors, Visiting Business People, Cyrus Khambata, Chief Executive Officer, CEO, CDSL Ventures Ltd (CVL), New Business Age, June 2013',
			'description' => 'Cyrus Khambata is the Chief Executive Officer at CDSL Ventures Ltd (CVL).  He joined Central Depository Services Limited (CDSL) in 1999, the date of CDSL’s operation and currently offering his services as an Executive Vice President.',
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	(int) 8 => array(
		'Article' => array(
			'id' => '1077',
			'article_category_id' => '40',
			'title' => 'Nepali Banking In Transition Through Mergers And IPOs',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<strong>By Siromani Dhungana (with inputs from Yagya Banjade and Rashesh Vaidya)</strong></p>
<p>
	<em>As per the NRB’s latest data, the country has 31 commercial banks, 87 development banks, 80 financial companies and 21 micro-finance companies. The number shows that there is tough competition among banks and financial institutions (BFIs) forcing them to face multiple challenges. The major one is surely the capital base. The introduction of merger policy has created opportunities for banks to increase their capital base. At the same time, the BFIs are also going ahead with Initial Public Offerings (IPOs) to increase their capital base. In this issue, New Business Age tries to present an overview of how the Nepali banking sector is going about with mergers and IPOs.</em></p>
<p>
	The trend of announcing merger plans by the banks and financial institutions (BFIs) has gathered pace in recent months. According to Nepal Rastra Bank, a total of 28 banks and financial institutions (BFIs) have already merged with each other reducing the total number of BFIs by 15. Similarly, some 24 BFIs have already received Letter of Intent (LoI) to be merged with one other, and upon completion of this process, the total number of BFIs will reduce by another 14. And, other 12 BFIs have applied for the LoI. Once these too complete the process, the number of BFIs will be reduced by additional 5.</p>
<p>
	This shows that in spite of several weaknesses to implement monetary policy, Nepal Rastra Bank (NRB) has become quite successful in implementing its merger policy. Earlier, the central bank had announced packages of rebates, discounts, waivers and facilities to the BFIs opting for mergers. But now, the bankers themselves believe that merger has become compulsory for many banks which are suffering from the problem of low capital base and limited geographical coverage.</p>
<p>
	Similarly, a wave of Initial Public Offerings (IPOs) has started among the new BFIs. In the last Nepali calendar year that ended on mid-April, 20 BFIs issued IPOs, issuing shares worth Rs 5.6 billion. More offering such IPOs are in the pipeline. Though BFIs can increase their capital base also through Further Public Offering (FPO) of their shares, very few of them have opted for this route.</p>
<p>
	<strong>Need for Merger</strong></p>
<p>
	Apparently, the universal objectives of the merger or acquisition are to consolidate the capital, reduce operational expenses, expand business and maximise profits.&nbsp;</p>
<p>
	However, in our case, mergers of three distinct natures now seem to be in the offing.&nbsp;</p>
<p>
	Firstly, relatively large institutions are planning to create a larger capital base so they could compete with global players who could potentially begin their operations here owing to WTO arrangements.&nbsp;</p>
<p>
	The second type of merger would be compulsive of sorts as the NRB has asked the BFIs belonging to the same business house to integrate without any “ifs and buts’’.&nbsp;</p>
<p>
	The third types are those who fear the complete meltdown if they fail to merge soon to consolidate resources, introduce corporate best practices and reduce expenses.&nbsp;</p>
<p>
	Consolidation is becoming increasingly necessary as banks are struggling to give returns to their shareholders. Almost all BFIs are eyeing mergers, and the number of BFIs will come down notably in the next three years.</p>
<p>
	However, bankers say more incentives are needed to speed up mergers, particularly between commercial banks. For example, they have been demanding decrease in corporate income tax to 20 percent from the current 30 percent for a merged BFI.</p>
<p>
	As there is no environment for increasing capital by issuing rights shares and bonus shares as that will not be enough to raise capital to the required level, finance companies have no other&nbsp;option than to go for a merger. Many finance companies have thought that’s it’s better to opt for a merger than to face action from the central bank for failing to increase the capital to the required level next year.</p>
<p>
	Also the shaken public confidence on towards banking institutions due to recent problems in the banking sector and their inability to give proper returns to their shareholders, has forced the BFIs to increasingly lean towards consolidation.&nbsp;</p>
<p>
	Consolidation is necessary also to increase the paid-up capital since the possibility to increase of paid up capital by issuing rights shares is very slim. Moreover, the size of loans being demanded by single borrowers has been increasing in recent years. So, BFIs having low paid-up capital cannot fulfill such demand.&nbsp;</p>
<p>
	Similarly, merger becomes an urgent need also because due to the terms agreed by Nepal while gaining membership of World Trade Organisation (WTO), financail services sector is open for foreign investors beginning 2010. So, foreign banks can open their branch in nepal. If big foreign banks open their branches in Nepal, the Nepali banks with small capital base may not be competitive.</p>
<p>
	<strong style="font-size: 12px;"><span style="font-size: 12px;"><br />
	</span></strong></p>
<p>
	<strong style="font-size: 12px;"><span style="font-size: 12px;">The Journey of BFIs Mergers in Nepal So Far</span></strong></p>
<p>
	The journey of merger of Nepali banks began nine years back. In 2004, Laxmi Bank merged into it Himalayan Saving and Finance Company (HISEF), and it was done according to the broad provisions of Company Act and Bank and Financial Institution Act (BAFIA). The then Narayani Finance and National Finance had merged to become Narayani National Finance following the same Acts. Similarly, Himchuli Development Bank and Birgunj Finance merged and became H &amp; B Development Bank aalso merged under the same act.</p>
<p>
	That experience highlighted a need for special rules to govern this process. But was only in May 2011 that Nepal Rastra Bank came up with a special rule to facilitate mergers between BFIs.</p>
<p>
	When Nepal Rastra Bank (NRB) introduced the Merger By-laws in May 2011, many had still doubted whether Nepali banks and financial institutions (BFIs) would go for mergers as the concept was a relatively new for the country. &nbsp;That doubt seemed valid for some time. But soon a merger spree started among BFIs. Birgunj Finance and Himchuli Bikas Bank sought LoI from NRB in 2004 and completed their merger the same year becoming H&amp;B Development Bank. The process gained memorandum after that. (See box for the list of BFIs merged so far.)</p>
<p>
	<img alt="Nepal Rastra Bank" height="345" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_nrb.jpg" style="margin: 0 10px 0 0;" width="595" /></p>
<p>
	As the list on the box shows, most of the BFIs that have chosen to merge are development banks and finance companies merging with another institution of same category or with a commercial bank. However, latelycommercial banks too have started merging with another commercial bank. The recent such example is the merger process started by Bank of Asia Nepal and Nepal Industrial and Commercial Bank Limited.</p>
<p>
	<strong>Major Provisions of Merger By-Law</strong></p>
<ol>
	<li>
		<strong>‘A’, ‘B’ and ‘C’ class financial institutions can merge into each other. ‘D’ class FI can merge with another ‘D’ class FI only.<br />
		</strong></li>
	<li>
		<strong>FIs that want to merge should form a separate merger committee and sign Memorandum of Understanding (MoU).<br />
		</strong></li>
	<li>
		<strong>The due process including MoU should be completed before applying to the Nepal Rastra Bank (NRB)for Letter of Intent (LoI). NRB should hold a meeting within 15 days of receiving LoI application.<br />
		</strong></li>
	<li>
		<strong>NRB decides whether to issue LoI or not after conducting discussions and detailed study of concerned institutions.<br />
		</strong></li>
	<li>
		<strong>Due Diligence Audit should complete within six months of receiving LoI from the central bank.<br />
		</strong></li>
	<li>
		<strong>The detailed factual report comprising assets and liabilities of concerned institutions should be submitted to the NRB.<br />
		</strong></li>
	<li>
		<strong>Copy of the decision regarding name, address and share ratio of concerned financial institutions should be submitted to NRB.<br />
		</strong></li>
	<li>
		<strong>Action plan of concerned financial institution including date of operation after merger process is completed should be submitted to NRB.<br />
		</strong></li>
	<li>
		<strong><span style="font-size: 12px;">Other documents as prescribed by the NRB should be submitted to NRB.</span><br />
		</strong></li>
</ol>
<p>
	<strong><span style="font-size: 12px;">NRB can ask for merger if the following situation prevails:</span></strong></p>
<ol>
	<li>
		<strong>In case representatives of a family, business group, firm or company are found assuming posts in the boards of directors of two or more BFIs and/or their financial conditions remain unhealthy.</strong></li>
	<li>
		<strong>If the non-performing loans (NPL) exceeded 5 percent of the total loan portfolio for 3 consecutive years.&nbsp;</strong></li>
	<li>
		<strong>Increase in systematic risk (i.e. in a situation when a BFI seems likely to fail to meet liabilities).</strong></li>
	<li>
		<strong>If independent operation of a BFI is causing negative impact on the banking system.</strong></li>
	<li>
		<strong>If a BFI faces prompt corrective action (PCA) for three times or more.</strong></li>
	<li>
		<strong>If NRB finds that merger of systemically important BFIs will strengthen the entire banking system.</strong></li>
</ol>
<p>
	<strong>Facilities for Merger</strong></p>
<p>
	The new regulations have pledged relaxation on provisions for capital structure, shareholding limit for promoters, credit-deposit ratio, borrowings limit for promoters and deprived sector lending, among others.</p>
<p>
	If the merger causes increase in the shareholding percentage of any promoter beyond the stipulated limit, such promoters get five years time to bring down their stake within the limit.</p>
<p>
	Likewise, merged institutions are allowed additional three years to bring CD ratio down to the of 80 percent. Similarly, promoters get additional three years to bring their borrowing (loans) down to less than 50 percent of the total shares they hold in the merged BFI.</p>
<p>
	In a bid to lure BFIs to merger, the central bank has even promised a discount in refinance rate by one percentage point to the merged institution. It has also offered to lower penal rate on standing liquidity facility by half for three years in case two or more BFIs merged into one.</p>
<p>
	The central bank has also opened upgrading of &nbsp;fianancial institutions relaxed the restriction on upgrading of a BFI to encourage merger. A BFI can upgrade to higher category (category ‘C’ to ‘B’ and from ‘B’ to ‘A’) if the institution seeking to upgrade is formed through a merger).</p>
<p>
	The rules also promise to recommend to the government for exemption of taxes in case a BFI faces losses during the course of merger facilities include the time duration of using SLF will be expanded to 30 days from the existing 5 days for three years after completion of merger process. NRB can provide other facilities according to the need of the banks.&nbsp;</p>
<p>
	<strong>Challenges of Transition</strong></p>
<p>
	Most of the consumers do not get sense of transition of banks merger because in an ideal case, all banking services continue to function normally even during the transition. ATM cards work, checks consumers write do not bounce and consumers will be able to get the all services.&nbsp;</p>
<p>
	&nbsp;However, banks face several problems during the transition. Among others major challenges of merger are as mentioned below:</p>
<p>
	<strong>1. Brand Name</strong></p>
<p>
	The identity of the institution in the market is through the brand name. The image of an entity is joining with a brand image. So, the settlement in the brand name of the newly formed merged entity is essential.</p>
<p>
	<strong>2. Composition of board of directors (BoD) and shareholders</strong></p>
<p>
	The major decision makers in any entity are the board of directors and the shareholders. If the disputes arise among these people, the performance as well as the future of the entity will be directly hampered. So, the number as well as the persons that should represent at the BoD should be settled in cool mind.</p>
<p>
	<strong>3. Structure of the new management team</strong></p>
<p>
	The new merged entity comprises of the management team from two or more different entities. So, clear visions should be set-up for making the new management team which could handle the merged organization in coming days.</p>
<p>
	<strong>4. Employees Management</strong></p>
<p>
	As the organization is merged, at the same time the employees also come together. The major assets any organization is human resources. So, if the merged entity can not handle properly the grievances of the employees, the situation of disputes may arise. &nbsp;</p>
<p>
	<strong>5. Ownership Division</strong></p>
<p>
	The problem of division among the ownership might arise in the merged entity. The questions of shareholding as well as takeover of the share equity might create division among the shareholders. &nbsp;</p>
<p>
	<strong>6. Banking Software</strong></p>
<p>
	Various types of software are being used by the BFIs for the smooth operation. Huge cost and efforts had been gone in maintain the software in an organization. But if the two different entities are using two different types of banking software, the problem as well as cost may arise in the settlement of the books of accounts.</p>
<p>
	 </p>
<p>
	<strong>Need of Separate Acquisition Law</strong></p>
<p>
	Acquisition is, however, yet to come under the legal regime in the country. The central bank has said that it has been doing necessary preparations to introduce a separate legal mechanism on acquisition to encourage consolidation of the financial sector. Acquisition of financial institutions is difficult at present since there is no related legal provision, says CEO of Kailash Bikas Bank Krishna Raj Lamichhane who is also the president of Development Bankers Association.</p>
<p>
	NRB officials say that about half a dozen banks had held talks with the central bank about the possibility of acquiring regional development banks and finance companies to reach out to new areas. Acquisition is a relatively faster process as the challenges of merger such as it can be done once the buyer and the seller reach an agreement. Bankers say the introduction of legal provisions for acquisition will help bring down the number of BFIs in the country. The central bank needs to be careful while issuing new licenses and also the ability for smaller banks to withstand the economic crisis.</p>
<p>
	<strong>IPO Attraction</strong></p>
<p>
	The Nepali investors have been showing very encouraging response to the IPO of the company, especially of commercial banks. The data of Securities Board of Nepal (Sebon) reveals that 22 companies have got approval for the IPO from mid July 2012 to till the mid May of 2013. Shares worth of Rs 5.78 billion came in the market during this period. Of the total 22 companies, eight development banks, eight commercial banks, three finance companies, one insurance company and one hydro-power company.</p>
<p>
	<strong>The Direction Ahead</strong></p>
<p>
	The foremost challenge to the country’s banking sector in the realm of merger of banks is to create an environment where major financial institutions will go for merger voluntarily, says Upendra Paudyal, vice-president of Nepal Bankers Association (NBA).</p>
<p>
	The overall financial health of merged institutions has been found to be improved so far, he opines, saying the primary intention of the merger should be to strengthen capacity of concerned banks and financial institutions.&nbsp;</p>
<p>
	The policy taken by the Nepal Rastra Bank has resulted in positive signs since the market players in the arena of banks and financial institutions have saturated, adds Paudyal says. “Merger bylaws have played very crucial role in lowering the number of BFIs.”&nbsp;</p>
<p>
	But there is a question about the way forward of merger in the banking sector. The mathematical aspect has been highlighted so far by both the government and the BFIs, Paudyal says. It is cultural aspect which largely determines the success of merger. Sincere effort from all concerned parties is a must to make a merger journey a great success in the counry, he concludes.</p>
<p>
	&nbsp;&nbsp;</p>
<hr />
<p>
	<strong>In Nutshell</strong></p>
<p>
	The first case of merger between BFIs in Nepal was the merger of HISEF Finance Ltd into Laxmi Bank Ltd in 2004</p>
<p>
	<strong>BFIs that have merged already</strong></p>
<ul>
	<li>
		Himchuli Development Bank &amp; Birgunj Finance forming H&amp;B Development Bank Ltd</li>
	<li>
		Narayani Finance &amp; National Finance forming Narayani National Finance</li>
	<li>
		Nepal Bangladesh Bank &amp; Nepal-Sri Lanka Merchant Bank forming Nepal Bangladesh Bank Ltd</li>
	<li>
		Kasthamandap Development Bank &amp; Shikhar Finance forming Kasthamandap Development Bank Ltd</li>
	<li>
		Business Development Bank &amp; Universal Finance forming Business Universal Development Bank Ltd</li>
	<li>
		Machhapuchchhre Bank &amp; Standard Finance forming Machhapuchchhre Bank Ltd</li>
	<li>
		Global Bank &amp; IME Financial Institution &amp; Lord Buddha Finance forming Global IME Bank Ltd</li>
	<li>
		Infrastructure Development Bank &amp; Swastik Merchant Finance forming Infrastructure Development Bank Ltd</li>
	<li>
		Annapurna Development Bank &amp; Suryadarshan Finance forming Supreme Development Bank Ltd</li>
	<li>
		Vibor Bikas Bank &amp; Bhajuratna Finance forming Vibor Bikas Bank Ltd</li>
	<li>
		Alpic Everest Finance &amp; Butwal Finance &amp; CMB Finance forming Synergy Finance Co Ltd</li>
	<li>
		Shine Development Bank &amp; Resunga Development Bank forming Shine Resunga Development Bank</li>
	<li>
		Pashupati Development Bank &amp; Udyam Development Bank forming Axis Development Bank Ltd</li>
	<li>
		Prudential Finance &amp; Gorkha Finance forming Prudential Finance Company Ltd</li>
	<li>
		NIC Bank &amp; Bank of Asia forming NIC Asia Bank Ltd (Process ongoing)</li>
</ul>
<p>
	<strong>Letter of Intent (LoI) Received &nbsp; &nbsp;&nbsp;</strong></p>
<ul>
	<li>
		Premier Finance &amp; Imperial Finance to form Premier Imperial Finance</li>
	<li>
		Royal Merchant Banking and Finance, Rara Bikas Bank &amp; Api Finance</li>
	<li>
		Araniko Development Bank &amp; Surya Development Bank</li>
	<li>
		Central Finance Ltd &amp; Patan Finance Ltd</li>
	<li>
		Diyalo Bikas Bank Ltd &amp; Professional Bikas Bank Ltd</li>
	<li>
		NDEP Development Bank &amp; Hama Finance Ltd</li>
	<li>
		Siddhatha Development Bank &amp; Public Development Bank Ltd</li>
	<li>
		Five Regional Development Bank to form One National Level Gramin Bikas Bank</li>
	<li>
		Shangrila Development Bank Ltd &amp; Bagheshwor Development Bank</li>
</ul>
<p>
	<strong>LoI In Pipeline&nbsp;</strong></p>
<ul>
	<li>
		Lalitpur Finance Ltd &nbsp;&amp; Progressive Finance Ltd</li>
	<li>
		Sagarmatha Merchant and Finance Ltd &nbsp;&amp; Reliance Finance Ltd</li>
	<li>
		Social Development Bank &amp; Corporate Development Bank</li>
	<li>
		Vibor Bikas Bank &amp; Kist Bank Ltd</li>
	<li>
		Manakamana Development Bank Ltd, Infrastructure Development Bank, Yeti Finance Limited &amp; Valley Finance Ltd.&nbsp;</li>
	<li>
		Khadbari Bikas Bank &amp; Birat Laxmi Finance</li>
	<li>
		Global IME Bank &amp; Social Development Bank Ltd.</li>
</ul>
<p>
	<strong>Merger Process Dumped</strong></p>
<ul>
	<li>
		Kathmandu Finance Ltd &amp; Civil Merchant Bittiya Sanstha Ltd</li>
</ul>
<div>
	<hr />
</div>
<p>
	<strong><span style="font-size: 12px;">Financial Indicators of the Merged Entities</span></strong></p>
<div>
	<p>
		The major financial indicators of the merged entities have slightly improved compared to the pre-merger situation.&nbsp;</p>
	<p>
		Machhapuchhre Bank Ltd (MBL) had a higher level of non-performing loan (NPL) before merger than of the Standard Finance Limited (SFL). The NPL of MBL was at 2.84 percent whereas; the NPL of SFL was at 0.73 percent. After the merger, the NPL of MBL stood at 2.73 percent according to the financial report for mid-July 2012.</p>
	<p>
		The Credit Deposit (CD) Ratio of SFL was very high at 104.27 percent whereas, the ratio was at good level at 74.62 percent for MBL before merger. &nbsp;After the merger the CD ratio of MBL was maintained at 73.07 &nbsp; percent. But the Return on Assets (ROA) declined below one percent.</p>
	<p>
		&nbsp;Among the three merged entities in Global IME Bank Ltd, the financial performance of Lord Buddha Finance Ltd was not good. Its Capital Adequacy Ratio (CAR) was very high at 33.76 percent. &nbsp;Similarly, the NPL and ROA of the finance company were at 3.99 percent and -0.61 percent respectively. The NPL of merged entity, Global IME Bank Ltd stands at 1.54 percent as of the third quarter report of the FY 2012-13. At the same time the ROA is at 1.13 percent.</p>
	<p>
		Similarly, in Vibor Bikas Bank after merger of Bhajuratna Finance &amp; Saving Co. Ltd. has a high level of CAR at 14.42 percent but at the same time the level of NPL has increased to 32.63 percent till the third quarter of the F/Y 2012-13. The ROA of the bank is also seen negative. It is at -1.95 percent.&nbsp;</p>
	<p>
		Vibor Bikas Bank is again going ahead with a proposal of merger with Kist Bank Ltd. &nbsp;The NPL of the Kist Bank Ltd is seen comparatively lower than of the Vibor Bikas Bank. The ratio was at 32.63 percent and 7.89 percent for Vibor Bikas Bank and Kist Bank respectively as of third quarter of the F/Y 2012-13. &nbsp;Both the banks have posted the negative ROA during the third quarter of the FY 2012-13. Similarly, Vibor Bikas Bank has not been able to maintain the good level of CD ratio during the period.</p>
	<p>
		Recently, Bank of Asia Nepal Ltd and NIC Bank Ltd have received LoI from NRB for merger. The banks have already announced a plan to publish their combined financial report of the fourth quarter of F/Y 2012-13 in the name of the merged entity, NIC Asia Bank Ltd. Both the banks’ indicators show that they are in a financially sound position. After the merger they are likely to emerge even stronger in the banking market.</p>
	<p>
		<img alt="Financial Indicators of Some Merged and to be Merged BFIs:" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_financial_indicators.jpg" style="margin:0 10px 0 0;" /></p>
</div>
<div>
	<hr />
	<p>
		<strong style="font-size: 12px;"><span style="font-size: 12px;"><br />
		</span></strong></p>
	<p>
		<strong style="font-size: 12px;"><span style="font-size: 12px;">‘Merger is a need of the entire financial system’</span></strong></p>
	<p>
		 </p>
	<p>
		<strong><img alt="Bhaskar Mani Gyawali, Spokesperson, NRB" height="240" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_bhaskar.jpg" style="float:left; margin:0 10px 0 0;" width="200" />What &nbsp;is the situation of merger in the banking and financial Institutions (BFIs)?</strong></p>
	<p>
		The trend of merger in BFIs has grown lately. &nbsp;After the introduction of Merger Bylaws in 2011 by Nepal Rastra Bank (NRB), 22 financial institutions merged to become 10 within a year. This is very encouraging.</p>
	<p>
		<strong>Why is there a need for merger in the financial market?&nbsp;</strong></p>
	<p>
		Financial institutions have mushroomed in the country, thanks to the liberal policies adopted by Nepal Rastra Bank in the past. Given the size of our financial system, the number of BFIs looks more than normal. Many of these institutions had invested in the real estate sector without any long-term benefits. NRB was forced to fix a ceiling on real estate investment by banks after a surge in the volume of nonperforming loans.</p>
	<p>
		Investment by financial institutions in unproductive sectors caused a liquidity crisis in the market. These institutions also failed to maintain corporate governance. &nbsp;Financial institutions should be able to return money to depositors as required. NRB had introduced Merger Bylaws 2011 to improve the condition of financial institutions.</p>
	<p>
		<strong>Why are there no expected improvements in merged institutions?</strong></p>
	<p>
		Merged organizations are much improved in comparison to single and troublesome financial institutions. The process of merger has helped institutions increase their capital base and ability to return the people’s money.&nbsp;</p>
	<p>
		<strong>Can you briefly tell us the merger process?</strong></p>
	<p>
		Merger is a need of the entire financial system of Nepal. The share swap ratio is obviously an issue of tension in the pre-merger phase. NRB provides counseling services to all institutions which want to go for merger. The process is very simple. At first, the BFIs should take the special decision of merger thorough the General Meeting of shareholders. Then they should sign a Memorandum of Understanding (MoU) for merger. Then, after forming a merger committee, they should apply to the central bank for the Letter of Intent. NRB conducts interaction with concerned stakeholders and provides insights including strengths and weaknesses of the merging BFIs. If BFIs want to continue the merger process even after the interaction, NRB approves the LoI. Concerned financial institutions should approve new structure which will come into effect after the completion of the merger process.</p>
	<p>
		&nbsp;NRB should always deal the entire merger process carefully because merger should not promote monopolistic business.</p>
	<p>
		<strong>What are the post-merger complications? Does NRB intervene if complications arise in the post-merger phase?</strong></p>
	<p>
		Some minor complications are inevitable in the post-merger phase. Salary disputes, implementation of new structure and other managerial work create several complications. NRB provides the necessary assistance if the situation so demands. Similarly, the central bank may opt for positive intervention if the post-merger complications start to hurt the entire transactions of the concerned BFI.</p>
	<p>
		<strong>Are the BFIs reluctant for mergers?</strong></p>
	<p>
		Definitely not. But merger is a complex process. Two or more institutions can opt for a merger when they develop a sense of mutual trust. Many chiefs have to agree to make one chief. Jumbo administrative committees have to be downsized. The present scenario of mergers is pretty exciting.</p>
	<p>
		<strong>Is merger a less attractive proposition because of the low incentives for the same?&nbsp;</strong></p>
	<p>
		First, organizations should be aware about the merger process. They should be aware that merger is not for NRB but for them. This is because it is their responsibility to make the organization stronger and sustainable. Providing different incentives and schemes to organizations is like luring a child by giving them chocolates. It is unnecessary to entice them like that.&nbsp;</p>
	<p>
		<strong>The incentives provided to the merging institutions have been discontinued. What about reintroducing these insentives to the institutions that will merge now ?</strong></p>
	<p>
		NRB couldn’t continue the facility because of the incomplete budget. &nbsp;As soon as we have a full budget, NRB will renstate these facilities. The central bank is committed to facilitate the merger process.&nbsp;</p>
	<p>
		<strong>Where has NRB’s preparation regarding bylaws related to acquisition reached?</strong></p>
	<p>
		Legally, BFIs &nbsp;which want to acquire the stake of any &nbsp;other financial institution can do so. The only difficulty is that NRB does not have any specific guideline and legal provision to tackle the issue of acquisition. NRB, however, is very supportive if any financial institution wants to acquire the stakes of other institution.</p>
	<p>
		<strong>Is NRB considering forced mergers?</strong></p>
	<p>
		 </p>
	<p>
		NRB is not for forced mergers because there is a need for mutual bonding in order to operate the merged entity smoothly. But NRB might force institutions which are in miserable financial status and cannot improve the same over a period of time.</p>
</div>
<div>
	<hr />
</div>
<p>
	<strong>Initial Public Offering in Banking Sector</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<img alt="Niraj Giri" height="270" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_niraj.jpg" style="float:left; margin:0 10px 0 0;" width="200" />The capital market is a mechanism created to facilitate the exchange of financial assets with a maturity period of more than a year. It is a broad term embracing the buyers and sellers of securities and all the agencies that assist the sale and resale of securities.&nbsp;</p>
<p>
	Capital market activities started in Nepal in 1937 with the issuance of the shares of Biratnagar Jute Mills Ltd. However, a more structured market activity started with the establishment of a stock trading mechanism in 1976 along with the establishment of the Securities Exchange Center. Enactment of the Securities Act and establishment of the Securities Board in 1983 gave the impetus for the development of capital market in Nepal in a more organized manner. In the early 90s after the success of the first People’s Movement, the government adopted liberal economic policies and opened up various areas to the private sector. This paved the way for the entry of private banks into the country’s financial market.&nbsp;</p>
<p>
	With the opening up of the economy, banks and financial institutions (BFIs) from the private sector have been in the forefront of making initial public offerings (IPOs). The IPOs of BFIs are also the most sought-after IPOs in the secondary market. In fact, most of the trading that takes place in the secondary market is that of the shares of companies from the banking and financial sector. So, this sector has played a major role in the development of our capital market., the number of companies listed at Nepal Stock Exchange (NEPSE) as of May 17, 2013 was 224 of which 29 are commercial banks and 142 development banks and finance companies. Besides, 68 per cent of the daily trade at NEPSE is of the shares of commercial banks. This shows that the secondary market in Nepal is highly dominated by the banking sector. Why is this sector so dominant?</p>
<p>
	There are various reasons. First and foremost is the licensing requirement of Nepal Rastra Bank (NRB), the central bank. NRB has made it mandatory for BFIs to issue their shares to the public. BFIs have to go for IPOs within two years of obtaining the operating license from the central bank. Besides, in IPOs, funds flow from the provider to the user. This means the contribution of IPOs to financing companies is direct in the sense that it provides them with additional funds for either starting a new business or expanding or diversifying the existing ones. This might not sound true for banking sector companies. However, IPOs fetch them funds which they can use to lend or to meet the various other requirements such as capital requirement set forth by the regulator. IPO also gives the public investors a partial ownership of the company and an opportunity to be represented at its board of directors. This representation of public directors in the board helps to bring about transparency and good governance at the higher echelon of the company.</p>
<p>
	When Janata Bank Ltd &nbsp;issued an IPO worth Rs 600 million last year, it was believed that the bank had ill-timed the issuance as the secondary market indicator, the NEPSE index, was bearish. &nbsp;Investors were pulling out of &nbsp;the secondary market and the merchant bankers related with the IPOs, too, were worried about the subscription. However, when the IPO closed, the issuance had been oversubscribed by 2.43 times. This showed that the investors still had confidence in the IPOs of commercial banks. The IPO of Janata Bank was followed by that of Civil Bank Ltd which &nbsp;issued an IPO worth Rs 800 million which, in turn, was oversubscribed by 6.38 times. Recently, Commertz &amp; Trust Bank Ltd made an IPO worth Rs 600 million which was oversubscribed by 11.64 times. During the same period, IPOs of some development banks and finance companies were undersubscribed or even cancelled.&nbsp;</p>
<p>
	NRB has put a lot of emphasis on good corporate governance practices in the banking sector and banks are under constant supervision of the central bank. Barring a few, most banks have been giving good returns, in terms of cash dividend and bonus shares to their investors. The investors, too, have benefitted from a higher capital gain from the trading of shares of banks, compared to those of companies from other sectors. There is also a belief amongst the investors that commercial banks do not fail. This has boosted the investors’ confidence in banking stocks.&nbsp;</p>
<p>
	Both the government and the central bank have been persuading the BFIs for mergers in order to strengthen the banks and consolidate the growth of the financial sector. Some financial institutions have opted for merger and the effects of this will be seen on the market in the coming days. Though difficult, mergers will definitely strengthen the banks' capital base and enhance their operational efficiency through synergic effects. This, in turn, will attract more investors to banking stocks.&nbsp;</p>
<p>
	<span style="font-size:10px;">(The author is a Director at SEBON)</span></p>
<div>
	<hr />
</div>
<p>
	<strong>Problems of Merger</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<img alt="Krishna Raj Lamichhane" height="270" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_krishna.jpg" style="float:left; margin:0 10px 0 0;" width="200" />The country’s banks and financial sector witnessed a significant change with the introduction of merger bylaw by Nepal Rastra Bank (NRB), the central regulatory body of banks and financial institutions (BFIs). The bylaw has provided unique opportunities to BFIs to overcome the problem of capital inadequacy.</p>
<p>
	Nepal Rastra bank enacted merger bylaw in 2011 and the pace of merger have accelerated after that. The reasons of mergers among banks and financial institution is obvious, they want expand their presence in the market. Some major reasons of merger are as mentioned below:</p>
<p>
	<strong>Increase capital base:</strong> The reason of most of the mergers is that banks want to increase their capital base. The central bank has urged banks to enhance capital base to expand their services into the urban areas especially in the capital.</p>
<p>
	<strong>Expand services: </strong>Banking consolidation helps concerned institutions expand their services. For instance, merger provides opportunities of utilizing each other’s brand and public relation jointly. Banks and financial institutions can expand their services after increasing their capital base. Similarly, merger helps banks to increase investment capacity that will make them capable of investing in huge projects.</p>
<p>
	<strong>Implementing new and innovative ideas: </strong>Banking consolidation through merger will allow BFIs to explore chances of coming up with innovative ideas. Together, the banks and financial institutions can enhance their operation system and implement effective management.</p>
<p>
	However, the process of merging of banks and financial institutions is not free of hassles. There are basically two types of hassles to complete the merger process: i) external or created by the regulator and ii) internal or the managerial problems within banks and financial institutions.</p>
<p>
	At present, the central bank has made it mandatory to stop trade of shares after starting the merger process which, I think, should be changed. I do not see any logic and rationale behind this provision.&nbsp;</p>
<p>
	Similarly, the government does not provide any facility to the banks and financial institutions which want to be merged. I feel that the government should reduce corporate tax to 25 per cent from existing 30 per cent for five years after merger process complete. It is necessary because BFIs should invest huge chunks of money in managerial activities to complete the merger process. It is really challenging to ensure smooth transition and resolution of conflict likely to surface among the staff due to hostility, ego clashes or layoffs during the merger process.</p>
<p>
	It is a fact that the existing merger process between various financial institutions seem to be more forceful in nature. I do not mean that the Nepal Rastra Bank has put any pressure for mergers but the circumstances have made BFIs merge. I think the government should create an environment where banks and financial institutions voluntarily show their readiness to be merged.</p>
<p>
	<span style="font-size:10px;">(Writer is Chairman of Development Bankers Association and CEO at Kailash Bikash Bank)</span></p>
<div>
	<hr />
</div>
<div>
	<div>
		<strong>Merger and Its Challenges</strong></div>
</div>
<div>
	<strong><br />
	</strong></div>
<p>
	<img alt="Guru Prasad Paudel" height="270" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_guru_prasad.jpg" style="float:left; margin:0 10px 0 0;" width="200" />Business organizations can combine with each other in a various ways. One of the most common approaches is Mergers and Acquisition (M&amp;A), which combine independent firms under common control. After unveiling a merger bylaw, the practices of M&amp;A in Nepali banking sector has been increasing tremendously. Around two dozen BFIs merged each other and created 13 institutions. More than two dozen BFIs have got the letter of intent (LOI) to go for the merger. Even if merger has been practiced in the financial sector to cope the various issues, there has been no real academic effort to extensively appraise how employees are reacting, adapting and coping with the new realities in the post– merger period as well as how BFIs are achieving their business targets.&nbsp;</p>
<p>
	Furthermore, we should not forget that in achieving the objective of BFIs merger, quite a number of intrinsic risk factors may be involved both during and post merger period which should have to be address by regulators as well as by bank BOD and senior management level.&nbsp;</p>
<p>
	Literature says, merger that has been practiced internationally is not less challenging. Some inherent features of merger as well as some country specific problems add more challenges in it. In the past, tangible aspects (e.g. capital, raw materials, equipment etc.) were the major issues of merger. Now the scenario has changed, and intangible aspects (e.g., human capital, culture, knowledge, goodwill, brand etc) are emerging as key challenges. &nbsp;</p>
<p>
	We adopted merger strategy very lately; though it has more than 120 years long history internationally. Nepal dose not have separate Act about M&amp;A, so there may arise some legal risk in the future. Today, large BFIs desire to acquire small financial institutions but we have no Acquisition provisions. M&amp;A is significantly affected by the geo-political condition of the country. Present situation of our country is unfavurable for mergers because of the rise in concept of divergence and dissolution, which is a serious external threat for merger. Lack of specific Act and provisions regarding acquisitions and geo-political scenario are major challenges. Besides these, some challenges and problems are as follows:&nbsp;</p>
<ul>
	<li>
		Top executives and top level management team may leave unexpectedly. When they leave the merged organization the expected synergy will be evaporated.</li>
	<li>
		Expected synergies evaporate also because of cultural differences. Research says only 23 percent of all M&amp;A earn their cost of capital.</li>
	<li>
		Data migration plays vital role in the merger, sometimes this single task will be multi-time expensive than other factors of merger.&nbsp;</li>
	<li>
		Expenses get increased because of disposal of old stationeries, write-off provisions of duplicated branches.&nbsp;</li>
	<li>
		Power politics can be a major obstacle to the success of M&amp;A.</li>
	<li>
		Agency problem is another key challenge of M&amp;A.</li>
	<li>
		Who are going to leave from the BOD &nbsp;will be an anxious issue.&nbsp;</li>
	<li>
		It further creates anxiety while selecting CEO or top level management officials because the institutions undergoing merger have their own individual CEO or higher management authorities.&nbsp;</li>
	<li>
		Due Diligence Audit Report (DDAR) does not give accurate price of the institutions hidden contingent liabilities may get added which further enhance the challenge in the merger.&nbsp;</li>
	<li>
		Management of employee of duplicated branches is yet another high value expense occurred due to merger.</li>
</ul>
<p>
	<span style="font-size:10px;">(Writer is Deputy Director at Nepal Rastra Bank. The views expressed here do not necessarily represent the views of NRB)</span></p>
<div>
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	Armed Police Force, an alternative police force of Nepal, has recently informed that it will mobilize the Industrial Security Force (ISF) as soon as the government adopts the ‘The Directives Relating to Customs, Revenue and Industrial Security.’ It is good news for fledgling industrial sector of Nepal, in a sense that something is certainly better than nothing.</p>
<p>
	For more than a decade now, industrial security has been a main concern for Nepal’s industrial and business sectors. The facets of insecurity are many. Industrialists and business people are often kidnapped, killed, threatened or extorted. Factories and businesses are forced to close down. Barriers are created for products reaching the markets, etc. This has had a very crippling effect on industrial growth, investment climate and overall expansion of the economy. As the result, the contribution of manufacturing sector to country’s GDP has gone down in the recent years and all along has remained far below its potential, much lower than the agricultural and service sectors.</p>
<p>
	In our context, industrial security is a complex issue since the insecurity stems out from a multitude of sources, mainly from the politically protected powerful formal or informal outfits. For this reason, a number of measures of industrial security of bureaucratic nature announced by different governments during last one decade have neither protected the industries nor the industrialists.</p>
<p>
	Therefore, more important than a force to be set-up, at first place, there must be a political commitment and honest implementation of the same if an effective security were to be provided to the sector. As long as the political parties, specifically some top leaders of major parties, continue to protect and nurture the criminal gangs and notorious dons, any security force of proposed nature will be rendered ineffective in no time. That is what has happened so far. Similarly, the violent activities that take place in the name of trade unions affiliated to these political parties is another headache, which in fact has in recent years forced a number of industries and businesses to close down permanently. In addition to it, frequent strikes and blockades very often organized by this or that political party are other main reasons of insecurity.</p>
<p>
	If the country is indeed determined to provide industrial security, it must first come in the form of political commitment of all reckonable political forces. They must be able to reign in their respective trade unions so as to prevent them from acting as ‘licensed criminal organizations’. Rampant impunity is another equally alarming phenomenon. Even if one is caught with reasonable evidence of involvement in criminal activities that jeopardize the industrial security, he is hardly punished. Political protection, corruption or legal loopholes set them free sooner than one could imagine.</p>
<p>
	Undoubtedly, an effective industrial security is possible only when the overall law and order situation of the country improves, political forces stop impeding the justice and making their unions an extortion apparatus. But, at the industry level, right of ‘hire and fire’ to the employer would give another level of security to the industries. This will put all those elements at bay who claim to be workers but never work in the industry but in the political front.</p>
<p>
	Equally crucial is an industrialist and businessman being true to his profession. If the business people align themselves with this or that political force, or habour political ambitions, they are naturally opposed by the rival political forces. It is no secret that a large number of businessmen clandestinely finance the political parties and leaders, not only because of compulsion but as an ‘investment’ at their free will. These activities certainly do not help to consolidate their security situation. For the proposed force to be effective or mere functional, political commitment on the part of parties and professionalism on the part of industries are minimum prerequisites.</p>
<div>
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			'title' => 'Century Of Indian Cinema: The South Asian Message',
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	<em>Indian Cinema has turned a hundred years. And as it grew in shape, size, craft, value and visibility globally, it had love-hate relations in the South Asian region, whether in Nepal, Pakistan and Bangladesh. How have the relations of Bollywood with people and governments in South Asia evolved?</em></p>
<p>
	<strong>The 100 Years and Journey So Far</strong></p>
<p>
	Indian Cinema, not Bollywood, has completed a hundred years in May 2013, considering the release of the Marathi classic Raja Harischandra by father of Indian cinema, Dada Saheb Phalke, in May 1913 as the inception of Indian Cinema. Though the global face of Indian Cinema is surely Bollywood, the large-scale Hindi films from Mumbai, there are much more to the art and craft of cinema from India, specially the films in Malayalam, Bengali, Marathi, Tamil and Telugu languages. The non-Hindi films from India are equal in number and value of business to the Hindi films, all totaling some 1200 films in 2012 bringing in some USD 3.6 billion revenue. This is more than double the number of films produced by Hollywood though the revenue is more than a trillion dollars in Hollywood. The spread of the Indian cinema industry’s oeuvre is amazing. The films are shown in some 100 overseas markets, catalyzing the growth of trans-national creative networks, collaborations. Big studios Columbia, Disney and 20th Century Fox are now striking co-production deals with Indian companies.</p>
<p>
	<strong>Bollywood &amp; Pakistan:</strong></p>
<p>
	In the South Asian markets, especially in Pakistan and Bangladesh, Indian cinema was officially banned for long. However, that did not help the local entertainment industry and Indian cinema found pirated ways into the houses of people wanting the same.</p>
<p>
	The 1960s marked the high point of Pakistan’s film industry, when Abbot Road in Lahore filled with smart art-deco cinemas playing the latest colour offerings to packed houses. Today, the heart of movieland is dead. The 1998 hit Choorian briefly revived the industry. Its tale of a city boy who falls in love with a country girl promised to another man, was first dismissed by critics as derivate, but it proved a huge hit with movie audience who loved the way it pinched a proven Bollywood formula.</p>
<p>
	Pakistan had banned Indian films after going to war with its neighbor in 1965 but over the past few years, as relations between the nuclear-armed rivals have improved, authorities have been allowing a trickle of Indian films to be shown in cinemas. That has delighted movie fans and cinema operators but Pakistani film producers fear a flood of Indian films could mean the end of the local film industry.</p>
<p>
	However, in recent years some of Pakistan’s hottest talent has moved to Mumbai. Ali Zafar, one of the country’s biggest pop stars, made his Bollywood debut this year in Tere Bin Laden. Beena Malik, singers Nusrat Fateh Ali and Rahat Fateh Ali and many others are all too known. Add in a stagnating economy and criticism of Lollywood’s bawdy movies by Islamic groups, cinema in neighbouring India seems an attractive destination for young stars. Nilofar Bakhtiar, who chairs the Pakistan Senate’s standing committee on culture and tourism, suggested strengthening ties with Bollywood to help revive Lollywood’s fortunes, including film training opportunities. But the suggestion would lead to a faster exodus of talent to India, according to Qaisar Sanaullah Khan, secretary of the Pakistan Cinema Owners’ Association.</p>
<p>
	For long, competition from Bollywood fare as well as the mediocrity of Pakistani films means that many Pakistanis opt to stay at home and watch Indian movies on pirated DVDs. Cinemas have been struggling for years and many operators have given up and sold off their premises which have been converted into shopping centers or offices. From about 750 cinemas nationwide in the 1970s, there are now 300. But Indian films are breathing life back into Pakistani cinemas. Cinema operators are cashing in on the revival of interest in the cinema the Indian films have generated. Before screenings of Indian films began, a cinema ticket in Karachi cost less than 100 rupees. Now it is 150 rupees or more. Pakistani film distributors also welcome the revival of cinemas.</p>
<p>
	<strong>Bollywood &amp; Bangladesh:</strong></p>
<p>
	It’s official. After being exiled for 39 long years since 1972, Indian films were set to release in Bangladesh since late 2010. It’s no secret that Bollywood films are immensely popular across the border in Pakistan and Nepal, and Tamil films in Sri Lanka. However, thanks to protectionist measures by the Bangladesh government, Indian films have long been banned there. The rationale behind the ban that came into effect in 1972 after India won independence for them from Pakistan was to protect the fledgling Bangladeshi film industry. In theory, it was not a bad idea.&nbsp;</p>
<p>
	But the lawmakers forgot one small thing. In the information age, getting access to Indian films through illegal means is extremely easy. And the Bangladesh audience prefers Indian films, as the high number of shops selling illegal DVDs and the small number of cinemas in Dhaka testify.</p>
<p>
	In January 2010, Bangladesh decided to allow the release of Indian films but this happy period lasted only six months as aggrieved local filmmakers cried foul and appealed against the decision. Thus, Indian films were banned again. Now, cinema owners, fed up with the lack of local interest in local fare, appealed to the court to allow Indian film imports and the courts have agreed, leading to official Bollywood releases in Bangladesh since September 2011.</p>
<p>
	First of all, in the age of globalization and free sky we cannot keep resisting foreign culture to creep into our society. The popularity of Hindi cinema is immense not only in Bangladesh but also across the world. And people around the world can easily get access to the cable and satellite television. Moreover, DVD and free download of movies from the internet have made it even easier for the middle and upper class viewers to enjoy Hindi or English movie at will. These alternatives do not include the marginal class of the society. The irony is the middle-class in the country rarely go to cinema hall to watch Bengali cinema or keep themselves updated about news and views of Dhaliwood. It is strongly believed that the target population of Bengali cinema is no other than the rickshaw pullers, garments workers and other wage labourers. The quality of Bangladesh cinema is quite understandable in terms of its technical aspects and storyline, which are not comparable with any other country’s cinema such as Indian, or even Pakistan and Nepal.</p>
<p>
	&nbsp;One can easily ask why the ‘cinema protectors’ do not protest against English cinema or Hindi cinema shown on satellite TV or in the internet. The reason is quite obvious. It is either their family members who are direct consumers of those sources or they have no hand to regulate the sky. But, they only can regulate the taste and fate of the marginal people and cinema halls as they wish.</p>
<p>
	Also, the concept of ‘culture’ is not so easy to understand what we perceive it to be. It has different facets and dimensions which can encompass time and space and influence people in another society. We use the concept ‘culture’ without much thought and conceptualize it which is why the concept remains a vague one in academia and even in the socio-political sphere. Dhaliwood producers and exhibitors are now understanding that if their own cinema quality falls and cannot evoke the audience to the cinema hall what will happen to some 800 cinema halls that still survive across the country?</p>
<p>
	<strong>Bollywood &amp; Nepal:</strong></p>
<p>
	The making of Nepali films is said to have begun with D.B. Pariyar’s Satya Harishchandra, which was the first Nepali-language film to be shot. It was produced from Kolkata, India, and was released on September 14, 1951. Aama (meaning mother) was the first film produced in Nepal and was released on October 7, 1964. It was produced by the Information Department of His Majesty’s Government of Nepal. The first film to be produced under a private banner was Maitighar, which was released at the end of 1966 by Sumonanjali Films Pvt. Ltd. Although it was a Nepali movie, it had many Indians contributing toward its making. The Nepal government established the Royal Nepal Film Corporation in 1971. Mann Ko Bandh was the first film produced by the corporation. It was followed by Kumari (the first Eastman color Nepali film) in 1978, Sindoor in 1980, and Jeevan Rekha in a series. Their success opened up the avenue for private parties to enter into filmmaking as an industrial endeavor.</p>
<p>
	In 1990, Nepal witnessed important political change. The people’s movement brought the monarchy to its knees and democracy was restored. The society started to become open and vibrant. This had an important consequence for the fledgling film industry: It began to grow rapidly or even to “bloat”. There was an unprecedented growth in the number of productions. Within three years, some 140 films were made. Distribution started to develop. Market share in the existing market increased and the market itself expanded. Cinema halls increased to more than 300. Nepali filmmakers became optimistic of displacing Hindi films, which had dominated the Nepali market earlier.</p>
<p>
	The start of the Maoist revolution in Nepal in the mid-1990s was the beginning of the downfall of the domestic film industry. There was an unwritten ban on Hindi films too for quite some time. In the period of war and conflict, a very small number of films were made, and audience numbers fell sharply. It resulted in lower budgets and even lower performances, which resulted in even smaller audiences. In the later years of the conflict, the production and release of Nepali films had almost come to a standstill. Many actors and filmmakers left the country in search for work abroad.&nbsp;</p>
<p>
	Also, during the 1990s, some filmmakers, mostly with non-fiction base, started championing a new kind of cinema. They denounced the crude imitation of Bollywood aesthetics and demanded indigenous aesthetics and a more realistic approach. They made some films which have received some critical acclaim at home and some international recognition. Historic movies like Balidaan and Seema Rekha made during this period were appreciated both by critics and audience.</p>
<p>
	By 2006, the situation in Nepal calmed down. With the Maoists coming into mainstream politics, the Nepali film industry started to return to its previous state. Today, more films are being made and released. The production companies and those in the industry are enthusiastic about the country’s new situation. The return of peace has opened more venues for the shooting of films, and the industry is seen to be making good use of this time to revive its image.</p>
<p>
	<span style="font-size: 12px;">New generation moviemakers geared up to make sensible cinema with entertainment rather than Bollywood inspired socio-actions. Kagbeni, Sano Sansar, Mero Euta Saathi Cha,First Love, Kohi Mero, etc. are some of the fine examples of quality cinema in terms of presentation, performance, story and technical superiority. However, they lacked in connecting with the audience. In January 2012, a film named Loot was released which emerged as a blockbuster. It was also the first movie in decades to be screened more than 100 days in the cinema halls. Much recently Chapali Height broke opening weekend gross by earning 8.4 million at the box office, breaking one of the records held by Loot, but Loot still holds the distinction of the highest grosser by far.</span></p>
<p>
	After banning Hindi films in 2012, the breakaway faction of Maoists led by Mohan Baidya was forced to withdraw the ban within a few weeks ahead of the festive season. The party had imposed a ban on ‘vulgar’ Hindi movies in a bid to ‘safeguard national sovereignty’ and ‘promote a self-reliant economy’. Multiplexes and single screen theatres in Kathmandu began screening ‘Barfi’, ‘Heroine’, ‘Oh My God’ and ‘Kamal Dhamal Malamaal’---Hindi movies which were released before screening was stopped.</p>
<p>
	Due to the ban hall owners were either forced to down shutters or screen Nepali movies in few screens on discounted rates. But the response from movie goers was not enthusiastic. Movie halls incurred losses valued at nearly NRs 2.5 crore ( Rs. 1.5 crore approx) during the 10 days from October 1 to October 10, according to Ashok Sarma, managing director of Digital Cinema.</p>
<p>
	<strong>Conclusions:</strong></p>
<p>
	Given the complex reality of globalization in the age of free information and entertainment, we need to reconsider our cultural boundary and perception very seriously. Before anything else, we need to be more logically political and less emotionally cultural.</p>
<p>
	“Filmmaking is like a nuclear power. If used properly, it can immensely help mankind. And if misused, it can destroy many minds,” says the noted alternative film-maker of Assamese origin, Jahnu Barua. There can be cross-cultural flow through cinema across South Asia and this can help develop people-to-people relations.</p>
<p>
	Often the anti-woman or commodification of sex and violence through a large number of Bollywood films are questioned by critics in other South Asian nations. And rightly so. “It’s the job of cinema to condemn inexcusable social realities and portray reality as it ought to be — only a lazy film maker will claim that it’s impossible to do both while remaining entertaining and commercially viable,” says Anna MM Vetticad, author of The Adventures of an Intrepid Film Critic. A trip to the cinema can easily be a lesson in how to objectify women: skimpy clothes, close-ups of bare midriffs and of course, ‘item numbers’. Post the December 16 Delhi gangrape, the lyrics of the Fevicol se &nbsp;song came under fire. &nbsp;However, it is important to celebrate some changes for the positive as well. Though unable to entirely shrug off their unease of independent or ambitious women (think the climax of Cocktail or Fashion), recent movies have given us heroines who are vocal and free-spirited. Movies such as Aiyya frankly depict female desire. Even sexiness is no longer the preserve of the Sheilas or the Chikni Chamelis. In Zoya Akhtar’s Zindagi Na Milegi Dobara, Katrina Kaif is presented as beautiful, attractive but the camera doesn’t letch at her.&nbsp;</p>
<p>
	Further, film talent training, giving boost to film exhibition revenue, and creating production standards to achieve by allowing Indian Cinema can easily be the benefits in other South Asian nations.&nbsp;</p>
<p>
	This is not to say that there should not be any form of protection given to local film industry and talent. Make shows of local cinema compulsory in certain time-slots, by law. Allow local block-busters to be screened in prime time too, through market forces. Let local media adequately publicize the local cinema and its talent. Let tax rebates be given to local cinema and higher entertainment taxes on Bollywood cinema. Co-opt and legalize the income coming in, do not ban and languish in revenue.</p>
<p>
	Further, let there be institutional ways of promoting South Asian cinema within India too: through South Asian Film Festivals, workshops, day-time shows in certain markets (depending on the language spoken in those markets). Pakistani Urdu based films would go well in select halls of Lucknow, Hyderabad, Mumbai and even Delhi. Nepali films will have a good market in eastern and north-eastern India specifically. Bangladeshi films are being released in West Bengal routinely. The trend needs to be encouraged further through institutional and media efforts to this end.</p>
<div>
	<span style="font-size:10px;">(The author is former Dean of Symbiosis International University and President of the advisory board at Whistling Woods School of Communication, Mumbai.)</span></div>
<div>
	<span style="font-size:10px;"><br />
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	 </p>
<p>
	<strong>By Bhawani Timilsina</strong></p>
<p>
	Young professionals find it difficult to further their academic careers as it requires managing work and study simultaneously. Open universities are gaining huge popularity among such professionals. The International Centre for Academic (ICA) has been helping such &nbsp;young professionals to pursue their academic dreams since its inception in 1997.</p>
<p>
	A majority of Nepali students are quite familiar with the idea of working and studying together. However, it is a task easier said than done. Binayak Shrestha was 23 when he felt the need to enhance his academic strength for career growth. But he found it difficult to continue study and work simultaneously. Then a friend suggested him to visit ICA which runs classes for courses offered by Indira Gandhi Open University, (IGNOU). Shrestha completed his degree back in 2008. He shares, “The experience of studying at ICA helped me enhance my academic qualification and build up confidence in a completely open and flexible environment. The advancement in technology supported me and my friends to get quality education while continuing our jobs.</p>
<p>
	The revolution in the information and communications technology has brought about a sea change in the teaching and learning system. Universities around the world are making their education ‘open’ to all; technology has made it possible for students to earn degrees without physically attending these universities. Open universities offer openness in selecting courses without the barrier of “prerequisites and essentials.” The demand of open universities has been growing around the world.</p>
<p>
	Paridhi Acharya, 26, completed her post graduation from ICA in 2010. &nbsp;What made her select a course of an open university was flexible environment that it provides, especially for those students who want to take work and study side by side. &nbsp; “I am thrilled that I got a degree from such a renowned university and completed my post graduation securing high marks,” &nbsp;says one of the gold medallists of ICA.</p>
<p>
	ICA is a partner institution of IGNOU which is one of the most popular educational institutions in India, offering inclusive education to students since its establishment in 1985.Being one of the pioneers in Open and Distance Learning (ODL) in Nepal, ICA has been actively involved in resource development and research and publications related to the ODL system. So far, ICA has helped thousands of students get internationally acclaimed degrees.Students who want flexibility in study are highly attracted by distance–learning programmes, which often rely on pre–prepared study materials instead of lecturers on a daily basis.&nbsp;</p>
<p>
	<img alt="ICA Gives Flavours of Openness" height="308" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/business_education_jue2013_ics_classroom(1).jpg" style="margin:0 10px 0 0;" width="595" /></p>
<p>
	ICA presently offers 44 different Academic, Value Added and Awareness programmes through ODL mode in Management, Humanities &amp; Social Science, Tourism, Computer Science, Journalism and Mass Communication, Education, Rural Development, Health Science, Social Work, Gender and Development Studies, Extension and Development Studies, Continuing Education etc. Currently, the cumulative student strength of ICA is more than 1200. The learners enrolled at ICA are freshers or professionals from diverse fields such as hospitality, financial institutions, telecoms, corporate houses, embassies and diplomatic agencies etc. ICA also offers such programmes in collaboration with government and non government agencies through an arrangement of programme specific Work Centres and a strong network of Learner Support Centres located in different parts of Nepal.</p>
<p>
	<strong>Premium courses of IGNOU:</strong></p>
<p>
	MBA/Management Programme aimed at graduates from any stream who may/may not be working but would like to pursue a career in Management. &nbsp;</p>
<p>
	MEG aimed at providing learners with a sound base in language as well as exposure to a wide range of literature, with options for specialisation in a particular area. The learners are expected to develop confidence in their critical and analytical abilities.</p>
<p>
	MCA aimed at preparing graduate students for productive careers in software industry and academia by providing an outstanding environment for teaching and research in the core and emerging areas of the discipline.</p>
<p>
	MARD or MA Programme in Rural Development (MARD) is designed to include such diverse academic contents that are essential in the making of this discipline in the Indian Context. A critical component of this Programme is dissertation based on empirical research in rural areas. The Programme will be useful for personnel working in various Govt. Departments/agencies, NGOs, Cooperatives, Banks and other institutions engaged in rural transformation. It will also be beneficial for fresh graduates interested in pursuing careers in the discipline of rural development.</p>
<p>
	PGDJMC or Post-Graduate Diploma in Journalism and Mass Communication provides opportunities for working media personnel to enhance their knowledge and skills for their professional development</p>
<p>
	B. Ed. aimed to systematize experiences and strengthen the professional competency of in-service teachers, to imbibe the knowledge and develop understanding of various methods and approaches of organizing learning experiences of secondary school students, to develop skills required in selection and organizing learning experiences, to understand the nature of the learner and the learning processes, to develop skills required for dealing with the academic and personal problems of learners, etc.</p>
<p>
	BCA aimed at opening a channel of admission for computing courses for students, who have done the 10+2 and are interested in taking computing/IT as a career. After acquiring the Bachelor’s Degree (BCA) at IGNOU, there is further educational opportunity to go for an MCA at IGNOU or a Master’s Programme at any other university/institute. Also, after completing BCA Programme, a student should be able to get an entry level job in the field of Information Technology or ITES.</p>
<p>
	BTS aimed at providing knowledge, competence, and skills in the professional area of tourism at the Bachelor’s Degree level. This programme, like other Bachelor’s Degree Programmes, can be completed in three years.</p>
<p>
	BA or Bachelors Degree Programme which admits students from both formal and non-formal streams. The non-formal stream consists of those students who have not cleared 10+2 or an equivalent exam. To get admitted to IGNOU’s degree programme, they have to pass its Bachelor’s Preparatory Programme (BPP) first.</p>
<p>
	B. Com., in which students without a formal qualification of 10+2 or its equivalent can also seek admission and they can study at their own pace and convenience over a period of three to six &nbsp;years.</p>
<p>
	Students also get basic knowledge in the core areas of humanities, social sciences, computers and science &amp; technology as there are some compulsory foundation courses. Besides selective courses in commerce there is flexibility to choose courses from a wide range of other disciplines.</p>
<p>
	DCE or Diploma Programme in Creative Writing in English provides understanding, skills and professional knowledge about the art of writing and develops the creative ability of those interested in a professional career as a freelance writer. The curriculum is structured to impart instruction in progressive stages so as to ensure that a learner can assimilate information about a writer’s art and develop his/her creative ability. This Programme includes training in imaginative writing skills in relation to feature articles (women’s issues, book reviews, etc), writing short stories, and scripts for TV/Radio, and writing poetry.</p>
<p>
	DTS, which provides the learners with the facility to specialize in the chosen operational areas in tourism studies and helps them acquire the associated skills.&nbsp;</p>
<p>
	BPP, which is a Programme offered to those students who wish to pursue a Bachelor’s Degree of IGNOU but do not have the essential qualification of having passed 10+2. Without such a qualifying certificate, these students are deprived of higher education. To enable such students to enter higher education stream, IGNOU has designed this preparatory programme.&nbsp;</p>
<div>
	<hr />
</div>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>‘We plan to add more programmes’</strong></p>
<div>
	<strong style="font-size: 12px;"><img alt="Biswajit Mukherjee, Chairperson / MD ICA" height="315" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/business_education_jue2013_ics_chairperson_biswajit.jpg" style="float:left; margin:0 10px 0 0;" width="200" />How long have been the journey of ICA in Nepal and its association with IGNOU?</strong></div>
<div>
	<p>
		ICA was established 16 years ago in 1997. We are associated with IGNOU since 2002.&nbsp;</p>
	<p>
		<strong>What are milestones of this journey, most memorable moments or developments?</strong></p>
	<p>
		First, induction meeting for the 1st Batch of 22 learners of IGNOU from Nepal that was held in January 2003 at Dharan. It marked the start of IGNOU’s journey in Nepal. We owe thanks to all the 22 first-batch learners who believed in us though we did not have any official recognition from the government back then.&nbsp;</p>
	<p>
		IGNOU awarded us the Best Overseas Partner Institution 2010 for the best services at the 22nd Convocation of the university held on April 2, 2011. Recently, we received the Best Overseas Partner Institution 2013 Award for the Best Services from the university &nbsp;at the 26th Convocation held at IGNOU headquarters in New Delhi on April 12, 2013 which was provided by the President of India, H.E. Pranab Mukherjee. Our hard work finally paid off; ICA’s association with IGNOU has grown stronger and stronger. We are now more determined and motivated to providing better services to our learners.</p>
	<p>
		<strong>You offer both Degree and Diploma education. How do they differ in content and status?&nbsp;</strong></p>
	<p>
		Degrees are more academic in nature; the curriculum is so structured that the person undergoing the course is provided an overview of several subjects apart from one subject that the person may be interested in exploring further for both career and academic interests. It is of longer duration like 2-3 years. Diplomas focus on getting a person trained and qualified in a particular business or trade. Some of them even include a short stint of apprenticeships and on-the-job training. They are of shorter duration - maximum one&nbsp;<span style="font-size: 12px;">to one and a half years.</span></p>
	<p>
		<strong>Are these degrees equivalent to those from TU and KU in content, legality and industry recognition?</strong></p>
	<p>
		Yes all our degrees are equivalent to those from TU, KU and other universities of Nepal. Our centre is also approved by the Ministry of Education, Government of Nepal. I also take this opportunity to inform our readers that IGNOU degrees have been enjoying global recognition much before they were recognized by Nepal. It is also one of the enlisted universities by the United Nations.</p>
	<p>
		<strong>What are teaching and evaluating methods, tools and systems you use?&nbsp;</strong></p>
	<p>
		Yes, we very strictly follow the evaluation tools and methods prescribed by IGNOU and have developed a few of our own systems too which we have implemented with IGNOU’s approval. Such measures have enhanced the quality of evaluation and feedback provided to the learners.</p>
	<p>
		<strong>Who are your faculty?&nbsp;</strong></p>
	<p>
		Our faculties are the professors/ lecturers/ professionals associated with some of the leading universities or MNC’s of Nepal and India. We try to make sure that we have the best of the best faculties who are competent enough to handle the subject matter through the ODL system. We consider our faculties on a par and, in some cases, &nbsp;even more competent than the faculties of conventional universities or colleges on handling ODL system much better. &nbsp;</p>
	<p>
		<strong>What recognitions and accreditations does ICA have?</strong></p>
	<p>
		ICA is approved by the Ministry of Education, Government of Nepal. IGNOU degrees obtained through ICA are recognized by TU and KU. We are also the only member of the Asian Association of Open Universities (AAOU) from Nepal.</p>
	<p>
		<strong>What are your future plans?</strong></p>
	<p>
		We do have some big plans for the future. Now that we have been successful in establishing ourselves as one of the pioneer institutions for Open and Distance Education in Nepal, we plan to add more programmes relevant to our context and society each academic year. We have established Learner Support Centres (LSCs) at four different locations in Nepal and intend to establish more LSC in other parts of the country too so that more and more students from outside the valley can benefit. &nbsp;&nbsp;</p>
	<p>
		We are now quite seriously thinking to invest more in &nbsp;technology so that we can take education to the door steps of every Nepali. We are trying to establish a research centre in association with IGNOU. It’s been a long-standing request of ours with IGNOU in order to develop skilled human resource required for the ODL system, development of courses appropriate for the Nepali context and contextualization of some of the existing courses.</p>
	<hr />
	<div>
		 </div>
	<p>
		<strong>‘Ours is&nbsp;<span style="font-size: 12px;">learner-centric learning process’</span></strong></p>
	<p>
		<strong><img alt="Amit Giri, CEO, ICA" height="290" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/business_education_jue2013_ics_ceo_amit.jpg" style="float:left; margin:0 10px 0 0;" width="200" />How does one &nbsp;study without attending classes?</strong></p>
	<p>
		Open and Distance Learning is basically an arrangement which enables a learner to study at the time, place and pace of their choice according to their circumstances and requirements. Hence, attending a class is not an issue. Moreover, the learners after admission receive specially-designed materials called Self Learning Materials (SLM) from the university. The teacher is inbuilt. The learners can comprehend by just going through the SLM.&nbsp;</p>
	<p>
		To supplement the learner’s understanding of the subject matter, we organise Academic Counselling Sessions on Saturdays where learners get their queries answered and doubts cleared. Attending these sessions is, however, not mandatory.&nbsp;</p>
	<p>
		<strong>What is the difference between studying at a regular college and at an open university?</strong></p>
	<p>
		The basic difference is that in a regular college a learner has to attend classes where attendance is mandatory. It is a teacher-centric process for learning. There are restrictions of age, qualifications and physical presence. Costing is rarely done on cost-effective and efficient basis. In an Open University, physical presence is not mandatory. Ours is more learner-centric and provides a more flexible access to education. It is both cost-effective and efficient system for education. Multi-media and multiple methods are widely used.</p>
	<p>
		<strong>Are the degrees of open universities recognized and accepted by the industry?</strong></p>
	<p>
		Yes degrees of IGNOU obtained through ICA are recognized in Nepal and globally. A number of our graduates are absorbed in Nepal and abroad. The latest research shows that in countries like the UK, Australia, and the United States, graduates from Open Universities are in demand in the job market. The degrees are recognized and accepted universally. In Canada the degrees of IGNOU are assessed and recognized by the International Qualifications Assessment Service (IQAS) and it is one of the universities listed by the United Nations.</p>
	<p>
		<strong>What is the evaluation mechanism?</strong></p>
	<p>
		Evaluation of learners is done i) through assignments which carry 30 per cent weight in the final grades of the leaner. ii) On the basis of an examination conducted at the expiry of the minimum duration prescribed for the concerned course called Term End Examination (TEE) which carries 70 per cent weight towards the final grades of the learner. iii) The University may also prescribe courses, specific project works, field work and practical assignments for the learners.&nbsp;</p>
	<p>
		<strong>Where are the Term End Exams held?</strong></p>
	<p>
		They are generally held in the month of June and December every year. At present, there are two exam centres in Nepal i) Exam Centre Code: 9601, Biratnagar ii) Exams Centre Code: 9602, Kendriya Vidyalay, on the premises of the Embassy of India, Kathmandu. Exams at both centres are conducted under the overall supervision of the Embassy of India. One can also take the exams from centres in 43 countries and through the Indian missions in countries with no IGNOU centres.</p>
	<p>
		<strong>Why do you at all have entry restrictions in an ‘Open System’?</strong></p>
	<p>
		The University is concerned about the acceptability of students in society hence they have to ensure equivalence of the degrees/diplomas of IGNOU with that of the conventional universities. So, they have to keep restrictions, e.g. one has to be a 10+2 for joining BA/B.Com/BSc, but that 10+2 need not be with a threshold marks. In other words, restrictions are there but they are minimal</p>
	<p>
		<strong>We have heard that one can graduate from IGNOU even without the 10+2 education. Is it really possible?</strong></p>
	<p>
		&nbsp;Yes, if you are 18 or above, you may join our Bachelor’s Preparatory Programme (BPP). It is a six- month programme where you have to select any two from three preparatory courses in social sciences, commerce and mathematics. If you qualify, you may join Under Graduate (Besides Science Streams), short-term skill development and value-added programmes and any academic programme of IGNOU for which (10+2) is the minimum educational requirement.&nbsp;</p>
	<p>
		<strong>Does it mean that BPP is equivalent to 10+2?</strong></p>
	<p>
		<span style="font-size: 12px;">Not at all. It is only an enabling mechanism (bridge course) for joining graduation and some other programmes of IGNOU by those who for some reason or the other had missed the opportunity of completing school or higher education.</span></p>
</div>
<div>
	<span style="font-size: 12px;"><br />
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			'id' => '1072',
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			'title' => 'Towards Solutions In Higher Education System',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong><br />
	</strong></p>
<p>
	<strong>By Dr A K Sen Gupta</strong></p>
<p>
	The higher education system and institutions operating therein are passing through a great crisis of identity. The situation is more or less equally turbulent in all parts of the world. The most important stakeholders i.e. the students are often terms as Gen Y whose attitudes and attributes are at complete variance with those of Gen X i.e. the earlier generation. The differing and rising expectations of this new generation from the system in general and society at large call for different types of stimulus so that the response is positive. The Gen Y students are often with unexpected demands and fathomless expectations; they are restless and continuously looking for something different, difficult and complex. Domino effect is quite visible in terms of tangible gains and short-term material benefits.&nbsp;</p>
<p>
	Consequently, there are several problems that are encountered by higher education institutions (HEIs). First, since majority of the teachers are from earlier generation, it is difficult for them to appreciate &amp; empathize with students of Gen Y as regards their attitude to life including their behaviour in class room. Second, the conflicting value systems of both the teachers and taught (two different generations) many a times give rise to situations of misunderstanding, if not confrontation. And finally, Generation Y students do not perceive any value addition in their personal as well as professional lives from Gen X teachers as they feel that the competencies of earlier generation may not be useful in developing the skill sets required for 21st Century. The resultant effects are sometimes disastrous: confrontation, alienation, disinterest in studies, absenteeism, among others. My interaction with students and faculty from a large number of HEIs in different parts of the developing world shows a disturbing trend of increased misunderstanding between the teachers (Gen X) and students (Gen Y).Being the centres of learning, the HEIs must foster a proper and conducive environment of understanding between the teachers &amp; learners where teachers enjoy teaching and students enjoy learning. Only such a climate can breed innovation and lay foundation stone for the economic and social growth of the country.</p>
<p>
	In such an environment, the only solution lies in empowering the students of the HEIs where they are involved in all decision making processes of managing the respective HEI. The existing emotion of alienation arises from the feeling of being supervised &amp; guided by people who, according to them, are not competent being from a generation that does not understand their values &amp; feelings. Therefore, the best way to solve this complex problem is to create an institutional mechanism whereby the students take their own decisions as regards their destiny inside the HEI. These include:</p>
<ol>
	<li>
		<strong>What should be taught?<br />
		</strong></li>
	<li>
		<strong>How it should be taught?<br />
		</strong></li>
	<li>
		<strong>Who should teach?<br />
		</strong></li>
	<li>
		<strong>What types of competencies / skill sets they would like to develop for themselves?<br />
		</strong></li>
	<li>
		<strong>What types of external interventions are needed to develop such competencies?<br />
		</strong></li>
	<li>
		<strong>What type of learning environment they would like to have?<br />
		</strong></li>
	<li>
		<strong>What facilities they would like to have?<br />
		</strong></li>
	<li>
		<strong>How much fees are desirable considering all the facilities?<br />
		</strong></li>
</ol>
<p>
	<span style="font-size: 12px;">This essentially means that the students should decide what is best suited for them. The idea is to augment the student engagementthrough empowerment in the learning &amp; administrative processes so that they becomemore responsible as well as accountable.The axiom is: let students (in close coordination with teachers) run the institution and decide for themselves what is best for them. It is parallel to employees running a company.&nbsp;</span></p>
<p>
	The ideas suggested are indeed revolutionary in nature but worth implementing to bring down the sense of alienation of students from the educational system. To sum up, what is being suggested is not a mere structural change in managing HEIs but a paradigm shift in running educational institutions where the consumers co-create the brand and its value propositions.</p>
<p>
	<strong>Couple of issues become critical in this regard:</strong></p>
<ul>
	<li>
		Students are expected to be mature and responsible to take upon the onus of partly managing and running the institution both at macro and at micro level. Student Councils or Student Unions have been successful instruments / models in this regard in many educational institutions in different countries. But, these Councils in many places are either political or ineffective. What is needed is to make them active and involved in decision making processes. The experimentation of senior responsible positions like Vice Principals (or Deputy Directors) being created from among the students on a rotation basis, may be tried.</li>
	<li>
		Teachers and managements of the HEIs should accept this experimentation on a serious note. As this would make the system open and transparent, it might create volatility at least to begin with.&nbsp;</li>
	<li>
		In such a scenario there should be a person designated as Mentor who is acceptable to all in case of any difference of opinion and who may be able to take care of all possible disputes.</li>
	<li>
		Simultaneously, there should also be the concept ofreverse mentoring whereby the Gen Y can guide / mould the shape of things to come through proper interaction with Gen X teachers / management, the ideas / solutions coming from the former for a change and implemented by the latter.&nbsp;</li>
</ul>
<div>
	<span style="font-size:10px;">Authored by Dr A K Sen Gupta, Founder and Convener, Higher Education Forum (HEF), the largest on-line community of higher educational professionals on a global scale. His past assignments include Director of leading B-Schools in India, World Bank Consultant and Professor at National Institute of Bank Management (NIBM), Pune, India.</span></div>
<div>
	<span style="font-size:10px;"><br />
	</span></div>',
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			'description' => 'Empowering students is the ultimate solution in this age of information boom and increased democratization of education.',
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			'id' => '1070',
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			'title' => 'Aptech Group: Focusing On IT Education',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	Starting about 18 years ago in Nepal with Aptech Computer Education (ACE), Aptech Group already has four computer education centres in Kathmandu. It also has Arena Multimedia centre in Kathmandu, which provides education on animation and multimedia. Arena is a division of Aptech. Now the company is preparing its expansion outside Kathmandu through franchisees. &nbsp;&nbsp;</p>
<p>
	“Talks are on the progress with investors in different cities and the details are being worked out,” says Aptech Master Franchisee in Nepal Shobha Kunwar.&nbsp;</p>
<p>
	<img alt="Shobha Kunwar, Aptech Master Franchisee in Nepal" height="289" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/information_technology_june2013_aptech_group_master_franchisee_shobha.jpg" style="float:right; margin:0 0 0 10px;" width="209" />Established in India in 1986, Aptech has by now presence in 40 countries across the world including Nepal and has a total of 1,308 training centres.&nbsp;</p>
<p>
	The group opened its first ACE in Nepal in 1995 and launched Arena Multimedia in 2001. According to Kunwar, Aptech has already trained over 50,000 people in Nepal and employs 120 people in the country.</p>
<p>
	<strong>Aptech Group in Nepal</strong></p>
<ul>
	<li>
		<strong>New Baneshwar – ACE</strong></li>
	<li>
		<strong>Kantipath – ACE and ARENA MULTIMEDIA</strong></li>
	<li>
		<strong>Kumaripati – ACE</strong></li>
	<li>
		<strong>Pokhara – ACE</strong></li>
</ul>
<p>
	<strong>Aptech Group</strong></p>
<p>
	The official website of Aptech Group claims, it has provided IT training to more than 6.5 million students in over 40 countries. It is also claimed to be the first IT training organisation in Asia to get ISO 9001 certification. The group has Headquarter in Mumbai, India.</p>
<p>
	Range of products by Aptech Group&nbsp;</p>
<ul>
	<li>
		<strong>1996 - &nbsp;Arena Multimedia, offers animation and multimedia</strong></li>
	<li>
		<strong>2006 – Acquired Avalon to gain an entry into the aviation industry</strong></li>
	<li>
		<strong>2007 – Entered Hardware and networking through N-power now rebranded as Aptech hardware and networking Academy</strong></li>
	<li>
		<strong>2009 – Started English language training</strong></li>
	<li>
		<strong>2010 – Acquired MAAC leading to become the leader in the Indian animation and multimedia training</strong></li>
</ul>
<p>
	<strong>Products&nbsp;</strong></p>
<p>
	Courses offered by ACE are related to all areas of software development. Aptech Certified Computer Professional (ACCP) is billed as flagship career program of the company. “It is a comprehensive IT course, which equips the student with advanced programming knowledge to build enterprise solutions with extensive hands on training and project work, giving students real world experience,” explains Kunwar.&nbsp;</p>
<p>
	<strong>ACCP Features:</strong></p>
<ul>
	<li>
		<strong>Technology platforms from Sun Java and Microsoft<br />
		</strong></li>
	<li>
		<strong>Emphasis on coding and source code documentation standards<br />
		</strong></li>
	<li>
		<strong>Upgraded Java and .NET technologies<br />
		</strong></li>
	<li>
		<strong>Projects/ e-projects<br />
		</strong></li>
	<li>
		<strong>Improved ‘Blended Learning’ delivery methodology<br />
		</strong></li>
	<li>
		<strong>Intensive practice and Assessment Laboratory workshops<br />
		</strong></li>
	<li>
		<strong>Open source Technology<br />
		</strong></li>
</ul>
<p>
	<span style="font-size: 12px;">Arena Multimedia, a sister body of Aptech Group offers animation and multimedia course ranging from three months to two years career courses and has presence in 20 countries. It has tie ups with Macromedia and Adobe.</span></p>
<p>
	Arena has been shaping the multimedia industry equipping students with the finest skills and state-of-art technologies in multimedia, says Kunwar. According to her, Arena students are making exciting career in the fields of advertising, gaming, entertainment, 2D and 3D animation, print publishing, web designing and development, among others.&nbsp;</p>
<p>
	“Aptech’s semester end online examination system is designed to offer comprehensive, secure and consistent online testing,” says Kunwar. “Evaluation happens in real time and answers are automatically encrypted for QA control.”&nbsp;</p>
<p>
	According to her, once a student completes a career course with Aptech their credit can be transferred to an international university with which the company has tie up. This transfer is available in Bachelor’s final year. Among such universities are Royal Melbourne Institute of Technology, University of Portsmouth, Middlesex University and Mahatma Gandhi University. &nbsp;</p>
<p>
	<strong>Future Strategy</strong></p>
<p>
	As the Nepali job market is becoming more and more competitive, the demand for IT education is growing as a result. This provides a good opportunity to the IT education provides to expand their business in Nepal.&nbsp;</p>
<p>
	Kunwar says, “Nepal has huge potentiality for IT education and the market has accepted the importance of IT in every field. Hence, we are planning to open education centres in all the major cities of the country with variety of courses.”</p>
<p>
	According to her, one component of the expansion drive is to launch Cambridge English Language Teaching (ELT) next year in Nepal. &nbsp;ELT will offer wide range of English Language course including spoken English, accent training, foundation courses, IELTS and TOEFL preparation.&nbsp;</p>
<p>
	<strong>CSR</strong></p>
<p>
	As part of Corporate Social Responsibility, Aptech is planning to provide computer education for rural kids. “Besides this, the company has plans for orphanages as well. Under this, Aptech will be donating books, computers and other materials in near future,” said Kunwar.&nbsp;</p>
<hr />
<p>
	<strong><span style="color:#f00;">SWOT</span> Analysis</strong></p>
<p>
	<b>Strengths&nbsp;</b></p>
<ul>
	<li>
		<b>Experienced of nearly three decades</b></li>
	<li>
		<b>Link up with world renowned institutions</b></li>
	<li>
		<b>Presence in 40 countries</b></li>
</ul>
<p>
	<b>Opportunities</b></p>
<ul>
	<li>
		<b>Growing market</b></li>
	<li>
		<b>Rising pool of educated people who are seeking IT education</b></li>
	<li>
		<b>Awareness of IT education</b></li>
</ul>
<p>
	<b>Threats</b></p>
<ul>
	<li>
		<b>Political uncertainty</b></li>
	<li>
		<b>Power cuts</b></li>
</ul>
<div>
	<b><br />
	</b></div>',
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			'description' => 'Starting about 18 years ago in Nepal with Aptech Computer Education (ACE), Aptech Group already has four computer education centres in Kathmandu. It also has Arena Multimedia centre in Kathmandu, which provides education on animation and multimedia.',
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			'title' => 'What Happens When We Treat The Country First And Self Interest Later? A True Revolution',
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			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img alt="Buddha's Delight" height="111" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/budda's_delight_imageJune2013.jpg" style="float:left; margin:0 10px 0 0;" width="100" />Today people across globe are closely watching a country. The notion about that country revolves around a tag of Corruption, Nepotism and Lawlessness. It faced decades of political turmoil and sometimes complete paralysis of normal life. Being a young country, with 50% population below the age of 30 and bordering a large economy, there were significant migrations for greener pastures. Though the population grew moderately and the middle class was emerging as power house, country forecast was bleak due to radical syndication and rampant corruption. It is Mexico I am talking about.&nbsp;</p>
<p>
	All the negative images of Mexico were true till some years back. It was facing problems from poverty, drug cartels, political instability, syndication, strikes – you name it. Then a revolution happened with a paradigm shift on people’s mindset. It was a silent revolution without any tag of any of the “Isms”. One day Mexicans decided that they have had enough. They realized that either they have to move on or they will be moved aside and their future cannot be defined by handicaps like Corruption and Political instability. They woke up to change the Image of Mexico.&nbsp;</p>
<p>
	And look at the result. Financial Times reported on 19th September 2012 that Mexican exports surpassed the combined export of the rest of the Latin America. Chrysler uses their Mexico base to supply to the Chinese market. Chinese market – you have heard it right!!!</p>
<p>
	How this has happened? It is the power of collective wisdom. When society decides to change together – the result can be awesome. Suddenly people do not want to be held hostage by radicalism. It’s a Mexican Wave – a Tsunami which gripped the country. Political parties were forced to act to avoid extinction. Waking up from the political coma, Mexico’s three major political parties decided to work together and signed a “Pact for Mexico”. &nbsp;</p>
<p>
	Mexico still has huge governance problems to fix; nobody claims otherwise. Even then, the change was profound and clear. As American Journalist Dorothy Day said - “The greatest challenge of the day is: how to bring about a revolution of the heart, a revolution which has to start with each one of us”. In that way, Mexico went in the right path. Acknowledging a problem is half the cure. &nbsp;</p>
<p>
	In recent times Mexico signed 44 free trade agreements; more than any country in the world. It is more than double than China and four times than Brazil at the same period; shocking but true. With the greatly increasing number of graduating engineers and skilled laborers in recent times, slowly they are gaining manufacturing market share back from Asia and attracting increasing global investment. &nbsp;By the way, my sources say that in SAARC region, number of Engineering and Medical students in USA from Nepal is more than that of Pakistan and Bangladesh put together despite of Nepal’s population being only a fraction of them. So patient is alive and kicking; Indeed. &nbsp;</p>
<p>
	But – we are discussing Mexico. What happened there? One trend became clear. Now, an average Mexican citizen can judge performances on real time. They can inform the authority about violations or infrastructure failure and government mends things. How quickly things are being fixed are also being tracked online. This gives them power. This power sets pressure points to force changes. Thus, Mexico liberalized commerce, fixed accountability and democratized Media. Basically, they democratized the democracy itself. Democracy in Mexico is not restricted to only a handful of people. Authorities and Government became accountable and answerable to all.&nbsp;</p>
<p>
	As per World Bank, in 2 years by end of 2011, Per Capita GDP of Mexico increased from US$7852 to US$10047 while India moved from US$1127 to US$1489 and China from US$3749 to US$5445. It means a Country with 116Mill population &amp; 1.1% growth rate increased their per capita exposure to goods by 28% in 2 years. As per latest figure - Mexican inflation is around 4% and unemployment rate 5%. 1.758 Trillion US$ Mexican GDP (based on PPP) gets a whopping 23% contribution from Industry!! Do we need more argument in favor of the power of people and the might of collective Wisdom?</p>
<p>
	Is this a revolution? Revolution came from Latin word “Revolutio”, which means “a turnaround”. Revolution is a fundamental change in structures that takes place in a relatively short period of time. It does not mean shutting down things or politicizing events or organizing strikes. Revolution means positive changes for the betterment of all member of the society. Revolution occurs when fellow citizens become accountable and behave responsibly. It is a turnaround which has to start with each Individual through small action. Even a handful of people can start this momentous change. As Margaret Mead said - “Never believe that a few caring people can’t change the world. For, indeed, that’s all who&nbsp;<span style="font-size: 12px;">ever have.”</span></p>',
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			'title' => 'Govt To Sign MoU For Construction Of Airports',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	Nepal is geared up to sign a Memorandum of Understanding (MoU) with concerned companies for the construction of four airports. According to Minister of Ministry of Culture, Tourism and Civil Aviation Ram Kumar Shrestha, the MoU will be signed within mid-December this year. Shrestha said so in a programme organized by Media International on May 18th.&nbsp;</p>
<p>
	He informed that MoU will facilitate the construction of second international airport in Nijgadh, Pokhara Regional International Airport, Gautam Buddha Regional International Airport in Bhairahawa and extensive improvement of Tribhuvan International Airport.&nbsp;</p>
<p>
	Shrestha also said that he will be playing an instrumental role in solving the problems of Nepal Tourism Board, including the appointment of CEO in the Board.&nbsp;</p>',
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			'description' => 'Nepal is geared up to sign a Memorandum of Understanding (MoU) with concerned companies for the construction of four airports. According to Minister of Ministry of Culture, Tourism and Civil Aviation Ram Kumar Shrestha, the MoU will be signed within mid-December this year.',
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			'article_category_id' => '60',
			'title' => 'ADB To Spend Rs 7 Billion For TIA Upgradation',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Asian Development Bank (ADB) will be spending Rs 7 billion for the improvement of Tribhuvan International Airport (TIA). The major portion of the amount will be spent in the development of infrastructures. According to Punya Raj Shakya, Project Director of Tribhuvan International Airport Improvement Project, Rs 5.25 billion is allocated for the physical infrastructure development. “The work is already in the process with a plan to complete it within three years,” said Shakya. Under the programme, airport’s runway will be widened by 300 meters, the regular work procedure of Civil Aviation Authority of Nepal will be divided and passenger’s waiting area and parking area will be increased by double. The amount will also be spent in installing Visual Approach Guidance System in Lukla airport to facilitate landing. The system will be installed in Tribhuvan International Airport and Lukla airport by December.</p>
<p>
	TIA currently has only two wide bodies and seven narrow bodies parking that can accommodate only nine aircrafts at once. This has been causing continuous delay in international flights and expansion of the parking area was needed. Under the prograame, 55 CCTVs, three X-ray machines will also be added and the lighting system will also be improved. The construction of internal terminal building is also in the process which will cost around 100 million rupees. &nbsp;Out of ADB’s total assistance, USD0 70 million is provided as loan and USD 10 million as grant.&nbsp;</p>
<p>
	<strong><img alt="Tribhuvan International Airport" height="163" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/civil_aviation_june2013_TIA_adb(1).jpg" style="margin: 0 10px 0 0;" width="595" /><br />
	</strong></p>
<p>
	<strong>A Glance at TIA Progress</strong></p>
<div>
	<p>
		<strong>1949</strong> – Nepal started its first aircraft with the operation of single- engine Bonanza aircraft.</p>
	<p>
		<strong>1956</strong>- King Mahendra renamed Gauchar Airport as Tribhuvan Airport.</p>
	<p>
		<strong>1964</strong>- Tribhuvan Airport again renamed as Tribhuvan International Airport.</p>
	<p>
		<strong>1967</strong>- The runway was extended from 3,750 feet long to 6,600 feet and the first jet aircraft Boeing 707 flew</p>
	<p>
		<strong>1968</strong>- With Thai Air International jet, the regular flight started fleeing</p>
	<p>
		<strong>1972</strong>- ATC services taken over by Nepalese personnel from Indian technicians</p>
	<p>
		<strong>1975</strong>- Runway extended to 10,000 feet long</p>
	<p>
		<strong>1989</strong>- Boeing 747 started and new ITB development process completed</p>
	<p>
		<strong>1995</strong>- Domestic terminal building and apron area expansion</p>
	<p>
		<strong>2002</strong>- Establishment of new Cargo building and expansion of ITB&nbsp;</p>
	<p>
		<strong>2009</strong>- International parking and domestic taxi way extension&nbsp;</p>
	<p>
		<strong>2010</strong>- TIA golden gate was changed to its new look. &nbsp; &nbsp;</p>
	<p>
		 </p>
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			'description' => 'Asian Development Bank (ADB) will be spending Rs 7 billion for the improvement of Tribhuvan International Airport (TIA). The major portion of the amount will be spent in the development of infrastructures.',
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			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Oman Air, the national carrier of Oman has been announced as the winner of the ’Middle East’s Leading Airline Economy Class’ category at the World Travel Awards 2013.&nbsp;</p>
<p>
	The awards that recognise the performance the airline has demonstrated over the last 12 months are voted for by travel and tourism professionals worldwide. Oman Air’s Chief Executive Officer Wayne Pearce attended the ceremony held on 5th May at Le Royal Meridien Beach Resort and Spa in Dubai.</p>
<p>
	“Oman Air is honoured to have won the award in this highly competitive category, and against such worthy competitors on the eve of the launch of ATM 2013,” said Pearce.&nbsp;</p>
<p>
	Oman Air has won many international industry award in recognition of its recent developments, including the introduction of new aircraft, the inauguration of a range of new destinations, the unveiling of spacious and luxurious aircraft interiors – including its A330 business class seat, named as the World’s Best at the Skytrax 2012 World Airline Awards - and the launch of state-of-the-art in-flight entertainment systems.&nbsp;</p>
<div>
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			'description' => 'Oman Air, the national carrier of Oman has been announced as the winner of the ’Middle East’s Leading Airline Economy Class’ category at the World Travel Awards 2013.',
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		'Article' => array(
			'id' => '1082',
			'article_category_id' => '31',
			'title' => '‘We Believe In Providing Solution Which Is Safe, Comfortable And Sustainable’',
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	 </p>
<p>
	Sanjeev Seth is the General Manager and Sales Leader for Trane Commercial Businesses in SAARC Markets that form part of the Climate Solutions sector at Ingersoll Rand. Trane is Ingersoll Rand’s strategic brand and world leader in Heating, Ventilating, Air-Conditioning and Refrigeration (HVACR) industries that serve commercial, institutional, hospitality, industrial and pharma market. Seth is responsible for driving innovation and growth of Trane business by understanding customers’ needs and developing solutions to meet customer expectations in SAARC countries. Siromani Dhungana of New Business Age talked with him during his recent visit to Nepal.</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>What is the purpose of your visit?</strong></p>
<p>
	Trane is one of the leading brand in heating ventilation and air conditioning and we are now trying to increase our presence in Nepal market and we appointed MAW Engineering Pvt. Ltd as business partner for the entire Nepal. We see Nepal as a very strategic market, it’s definitely grow substantial for near future. Trane is a brand which caters to HVAC system, service and solutions for both commercial and industrial segment. We see a lot of opportunity for providing air conditioning solution in this market. So we are here to meet customer and establish relationship and engagement with the customer.</p>
<p>
	<strong>What sort of strategies has Trane adopted to target the Nepali market?</strong></p>
<p>
	As we know, energy is becoming more and more expensive and it is important to have solutions which are environmentally efficient and sustainable. We believe in providing solution which are safe, comfortable and sustainable. The products which we are launching here are going to be very energy efficient and use gases which are environmental friendly with latest technology.</p>
<p>
	<strong>With a growing interest of customers in appliances such as AC and refrigeration, there must also be competition in the market. How has Trane made sure that its market share does not get reduced by cheaper competitors?</strong></p>
<p>
	There are a lot of choices available to customers and Trane believes in partnering with customers to find the right choice. We have wide range of products available from small conditioners to huge centrifugal chillers. The product portfolio Trane manufactures, is able to meet diverse needs of the customers. They are highly energy efficient and reliable. And there is a very strong service network of Trane service technicians. We partner with the customer to provide the right kind of solutions.</p>
<p>
	<strong>With new ideas coming in each day for every sector of technology, how do you brainstorm ideas for a new and refined product?</strong></p>
<p>
	It is the regular and continuous process. We continue to innovate new products and technology. In India we have our research and development centres for this.&nbsp;</p>
<p>
	<strong>How do you see market of air conditioner in South Asia and especially in Nepal?</strong></p>
<p>
	The economy in Nepal is definitely grown and there is a need for providing the right kind of solution for customers in Nepal. The customers in Nepal will require more solution from Trane. Trane is very bullish about the Nepal market. Our partner here, MAW, is in the right position to offer the right products and solution to market.</p>
<p>
	<strong>Would you please tell us about the major unique features of the Trane brand?</strong></p>
<p>
	This year Trane has completed its hundred years. Now we are committed as well as geared up for the next century. Our products and services are unique in the sense that they are able to provide energy efficient solutions, are sustainable and some of the major installation in the world use Trane products.&nbsp;</p>
<p>
	We also have building automation systems which can integrate the entire equipment of the building. Overall we have wide portfolio which meets the diverse needs of customers.</p>
<p>
	<strong>What are your major branding strategies?</strong></p>
<p>
	Today the customers are looking for not just the products. It should be backed by proper services as well. The product itself should be reliable and of good quality. Trane is very well established in commercial segments of the markets and is recognized as a very strong and reliable brand. It continue to focus on the same values of providing reliable and high quality products and it will be backed by strong after sale services with our partner here, MAW, and we also hope that our new products and innovations will address the need of the customers.</p>
<p>
	<strong>What is the current market share of your products in Nepali market?</strong></p>
<p>
	We have been working with a lot of corporate house here since a long time and we see here a lot of opportunity and we are bullish about the future.</p>
<p>
	<strong>Where do you want to see Trane brands in Nepali market five years from now?</strong></p>
<p>
	We want to see Trane being recognized as a brand which can provide energy efficient and reliable and high quality products and entire systems and solutions of the costumers’ needs. And it should be a recognized as a brand which can actually help the customers on saving energy also. And Nepal is already struggling due to power outage. So any product or system which can save energy will help address the need of customers here. And our focus is energy efficient products at&nbsp;<span style="font-size: 12px;">reasonable price.</span></p>
<p>
	<span style="font-size: 12px;"><br />
	</span></p>',
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			'description' => 'Sanjeev Seth is the General Manager and Sales Leader for Trane Commercial Businesses in SAARC Markets that form part of the Climate Solutions sector at Ingersoll Rand.',
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	(int) 4 => array(
		'Article' => array(
			'id' => '1081',
			'article_category_id' => '31',
			'title' => '‘We Are Looking For A Long Term Relationship With The Nepali Market’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Ramesh Palagiri, managing director and CEO of Wirtgen India, was recently in Nepal to officially launch Hamm soil compactors in the Nepali market. Hamm products are manufactured in India, China and Germany using German technology by Wirtgen Group. Siromani Dhungana of New Business Age talked with him on the business prospects of Hamm soil compactors in Nepal.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>What are the products you are currently supplying in Nepal?</strong></p>
<p>
	We are supplying Hamm soil compactors. By the end of the year, we are coming up with a tandem roller. Because most of the roads are on hilly terrain, there is lot of hope for road recycling in Nepal and we have a very good solution for that: technology called cold recycling (very popular worldwide.) By this technology, roads can be rehabilitated.</p>
<p>
	<strong>What prospects do you see for your business in Nepal?</strong></p>
<p>
	In the last few years, the development activities in Nepal have gone down. So there are lots of possibilities for infrastructure to come up. We expect the market to grow in coming years. As of now, the market size is roughly 35-40 machines per year. We are looking for a long term relationship with the Nepali market.&nbsp;</p>
<p>
	<strong>Why to choose your products?</strong></p>
<p>
	We have 100 years of experience. We are leaders in road technologies, both for constructing new roads and for rehabilitating the existing ones. We have premium products in economic range. The consumer gets best value for money with our products. We have patented a three point articulation engine with clear and simple information displayed. So even a operator without much experience can handle it. It’s easy in maintenance and high in productivity.</p>
<p>
	<strong>How do you see the South Asian market?</strong></p>
<p>
	The South Asian market is vital for us. There is almost the same level of opportunity for us with similar competition. The market is growing and that is important too. Our target is to become market leaders.</p>
<p>
	<strong>What is the level of competition you face in Nepal?</strong></p>
<p>
	The level of competition is the same we face in India. There is a throat-cutting level of competition. We are selling premium products. Our market share is 35 percent now, our target is 40-45 percent by the end of next year. We are also focusing in good after sale services and spare parts to get close to the customer.</p>',
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			'description' => 'Ramesh Palagiri, managing director and CEO of Wirtgen India, was recently in Nepal to officially launch Hamm soil compactors in the Nepali market. Hamm products are manufactured in India, China and Germany using German technology by Wirtgen Group.',
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	(int) 5 => array(
		'Article' => array(
			'id' => '1080',
			'article_category_id' => '31',
			'title' => '‘We Are Expanding Business In Developing Countries’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Hideto Kawamura, Department Head, Overseas Sales Division of Yamaha Motor Pvt Ltd, India recently visited Nepal to officially launch Yamaha Ray, a new scooter from Yamaha. &nbsp;In his 10 years of career in Yamaha Motors, Kawamura has worked in various departments ranging from services to sales and marketing. He joined the company in 2002 as the In-charge of CKD export operation and marketing support for Indonesian Market products. He moved to India in 2012 and has been overseeing export from India. In an interview with New Business Age, Kawamura shared the expansion plan of his company in Nepal.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>Would you please describe the Ray Scooter that you just launched?&nbsp;</strong></p>
<p>
	The Ray Scooter is specially made for women. The height of the seat is lower than the competitors. Overall, it is very comfortable for female riders. &nbsp;On the other hand, the mileage of the Ray is the best among the scooters segment available in Nepal. And, it has better pick up. The scooter is good enough to ride for two people and it goes smoothly while climbing the slopes.</p>
<p>
	<strong>&nbsp;How do you find the demand of your product in Nepal?&nbsp;</strong></p>
<p>
	We see a great market for scooters in Nepal. Though our product is new in Nepali market compared to other products, we are confident that our product will be popular among the riders. The scooter market in Nepal is basically owned by other models like Dio from Honda. But our product is competitive enough to take on them. Ray scooter would win customer’s trust in every aspect; style, pick up, mileage and overall. I believe we will own around 20 per cent market share in Nepal in 2013/2014. We will try our best to achieve that.&nbsp;</p>
<p>
	<strong>What are the other products that you are planning to launch in Nepal?&nbsp;</strong></p>
<p>
	We are considering launching variation models of Ray scooter in Nepal in near future. But I cannot say more about it right now.</p>
<p>
	<strong>How are you expanding your business internationally?&nbsp;</strong></p>
<p>
	Today, Yamaha sells around 7 million units of two-wheelers a year all over the world including in Japan, USA and European countries. We are also expanding our business in developing countries like Nepal. &nbsp;Now, we have the largest market shares in South East Asia mainly in Indonesia, Thailand and Vietnam. And we are expanding our business in African countries.&nbsp;</p>
<p>
	<strong>How do you see the prospects of your business in Nepal?&nbsp;</strong></p>
<p>
	Until 2012 December, we sold around 12,000 motorcycles in Nepal. It will expand much more and our sales could see up to 40 per cent growth compared to previous year. We have a plan to launch another variation of scooter that will also contribute to the growth.&nbsp;</p>
<div>
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			'description' => 'Hideto Kawamura, Department Head, Overseas Sales Division of Yamaha Motor Pvt Ltd, India recently visited Nepal to officially launch Yamaha Ray, a new scooter from Yamaha.',
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		'Article' => array(
			'id' => '1079',
			'article_category_id' => '31',
			'title' => '‘We Are Confident About The Performance Of Our Products’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Hiroaki Ashizawa, Director of Mitsubishi Electric India Pvt. Ltd is also heading Living Environment Air condition division in India. Founded in 1921, Mitsubishi Electric is a leading company in manufacturing and sales of electrical and electronic products. Hiroaki has handled many international markets including USA, Europe and Asia Market and has 35 years of experience in HVAC. In an interview with New Business Age, Hiraoki shared about his business in Nepali market.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>Could you please highlight the reasons of your visit?</strong></p>
<p>
	I came here for a launching ceremony of our Air conditioner products in Kathmandu. Since I am supposed to assist and support the business in Nepal, I also wanted to visit Airtech, our business partner here in Nepal.&nbsp;</p>
<p>
	<strong>What are the products that you just launched?</strong></p>
<p>
	Recently, we launched two air conditioning series namely Mr. Slim Series and CITY MULTI VRF series in Nepali market. &nbsp;Mr. Slim is a series of room air conditioners for private houses and small offices while City Multi VRF Series is for commercial purpose suitable to corporate offices, banks, hospitals, hotels, shopping complexes, villas, apartments, etc. Both these series are widely accepted in global market. With these full ranges of world class products we ensure that Nepalese customers would get the best AC products.</p>
<p>
	<strong>Can you tell us the major unique features of the Mitsubishi Electric brand?</strong></p>
<p>
	We focus on Mitsubishi Electric Quality promising the best experience in our products, services, partnership and people. Apart from premium quality, energy efficiency, usage of environment friendly green refrigerant R-410A for our product range and our service quality are key features that ensure standards matching to the lifestyle with lesser environmental impact.</p>
<p>
	<strong>How are you expanding your products in the international market?</strong></p>
<p>
	We are one of the leading air conditioner companies in global market including South East Asia. We are now growing rapidly mainly in the countries like India, Nepal, Pakistan and Bangladesh. We are already market leaders in our inverter segment in USA, UK, Spain, etc. We also enjoy leadership status in many Asian countries including Thailand and Myanmar.</p>
<p>
	<strong>How do you see the prospects of your business in Nepal?</strong></p>
<p>
	We launched our products in Nepal nearly a year back. With these best products, we are aiming to be the market leader by the year 2015. Seeing the price competition, I believe Nepal is one of the hardest markets in South Asia. It seems very tough but still we are ready to fight and grab the market. We are confident about the performance of our products and I am sure the valued customers in Nepal would pay some premium for our quality products.</p>
<p>
	<strong>How can Nepal get benefit from these products?</strong></p>
<p>
	We sell DC inverter type Air Conditioners with after sales services in Nepali market. As DC inverter type Air Conditioner is energy saving product, it could be beneficial for reduction of energy consumption ensuring the lower operating cost.&nbsp;</p>
<p>
	<strong>What is your further plan regarding your business in Nepal?</strong></p>
<p>
	We are planning to launch the Hot Water Generating system- a highly efficient and eco friendly product especially suited for hotel business in Nepal. &nbsp;</p>',
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			'description' => 'Hiroaki Ashizawa, Director of Mitsubishi Electric India Pvt. Ltd is also heading Living Environment Air condition division in India. Founded in 1921, Mitsubishi Electric is a leading company in manufacturing and sales of electrical and electronic products.',
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		'Article' => array(
			'id' => '1078',
			'article_category_id' => '31',
			'title' => '‘We Hope The Market For Our Business Grows Fast In Nepal’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Cyrus Khambata is the Chief Executive Officer at CDSL Ventures Ltd (CVL). &nbsp;He joined Central Depository Services Limited (CDSL) in 1999, the date of CDSL’s operation and currently offering his services as an Executive Vice President. CDSL is a leading securities depository in India. &nbsp;Previously, he served Bank of India as a Chief Manager for 20 years. Sushila Budhathoki of New Business Age talked with Khambata during his recent Nepal visit.&nbsp;</p>
<p>
	<strong>Excerpts:&nbsp;</strong></p>
<p>
	<strong>What brings you to Nepal this time?</strong></p>
<p>
	I am here for the inauguration of clearing and settlement system started by Central Depository &amp; Settlement Corporation (CDSC). I have been putting my effort to start the system for three years. I am here for technical assistance.&nbsp;</p>
<p>
	<strong>So, you had a meeting with brokers also?</strong></p>
<p>
	Yes, they had certain questions like how DEMAT operates, how the risks can be minimised etc. And we had to explain them.</p>
<p>
	<strong>Now the CDSC has come into full operation. How will it support the capital market of Nepal?&nbsp;</strong></p>
<p>
	In the physical settlement process, shares traded in the stock exchange have to be transferred manually. That takes a long time to change the ownership. With Dematerialisation (DEMAT), the shares get transferred to the respective stakeholders’ account immediately on the trading day so they can use it during emergency also. &nbsp;</p>
<p>
	<strong style="font-size: 12px;">How do you see the prospects of your business in Nepal?&nbsp;</strong></p>
<p>
	We hope the market for our business grows fast in Nepal. We will target big companies and have started the DEMAT services offered to the shareholders. So, that it would grow rapidly. People who are trading shares will prefer DEMAT because it is less time consuming. But the people who are not trading will take time to familiarize with DEMAT.</p>
<p>
	<strong style="font-size: 12px;">What are other infrastructures necessary for Nepali capital market?&nbsp;</strong></p>
<p>
	In the capital market, there are three large infrastructure providers. One is regulator who does a lot of monitoring, second is the exchange which offers trading facilities and the third one is depository which sets up the depository participants to cover the entire population. &nbsp;In India, there are 18, 000 depository centers covering 25,000 pin codes out of 27,000 pin codes in the country. State Bank of India provides DEMAT facilities from its 3000 branches among 10 -12 thousand branches.</p>
<p>
	So, like SBI, Bank of Kathmandu also can be the center for providing DEMAT facilities. It can offer this service from its 500 branches which will cover the entire country.</p>
<p>
	<strong style="font-size: 12px;">What are your suggestions to CDSC for providing services other than normal settlements?</strong></p>
<p>
	It can provide numerous services if permitted. One is e-voting service. It would help the shareholders to participate in the operation of the company that they own. For example, they can even electronically vote for the AGM even if they are not physically present to attend the programme.&nbsp;</p>
<p>
	Similarly, they can provide KYC (Know Your Client) services. To open a DEMAT account, you have to comply to the KYC rules. It is required by banks, insurance companies and telecom operators to name a few. All the documents need not be collected from the client in each and every step every time he/she transacts somewhere. So, CDSC can become a bank for KYC document and the client can just file his details once and for all for any organisation.&nbsp;</p>',
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			'description' => 'Cyrus Khambata is the Chief Executive Officer at CDSL Ventures Ltd (CVL).  He joined Central Depository Services Limited (CDSL) in 1999, the date of CDSL’s operation and currently offering his services as an Executive Vice President.',
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		'Article' => array(
			'id' => '1077',
			'article_category_id' => '40',
			'title' => 'Nepali Banking In Transition Through Mergers And IPOs',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<strong>By Siromani Dhungana (with inputs from Yagya Banjade and Rashesh Vaidya)</strong></p>
<p>
	<em>As per the NRB’s latest data, the country has 31 commercial banks, 87 development banks, 80 financial companies and 21 micro-finance companies. The number shows that there is tough competition among banks and financial institutions (BFIs) forcing them to face multiple challenges. The major one is surely the capital base. The introduction of merger policy has created opportunities for banks to increase their capital base. At the same time, the BFIs are also going ahead with Initial Public Offerings (IPOs) to increase their capital base. In this issue, New Business Age tries to present an overview of how the Nepali banking sector is going about with mergers and IPOs.</em></p>
<p>
	The trend of announcing merger plans by the banks and financial institutions (BFIs) has gathered pace in recent months. According to Nepal Rastra Bank, a total of 28 banks and financial institutions (BFIs) have already merged with each other reducing the total number of BFIs by 15. Similarly, some 24 BFIs have already received Letter of Intent (LoI) to be merged with one other, and upon completion of this process, the total number of BFIs will reduce by another 14. And, other 12 BFIs have applied for the LoI. Once these too complete the process, the number of BFIs will be reduced by additional 5.</p>
<p>
	This shows that in spite of several weaknesses to implement monetary policy, Nepal Rastra Bank (NRB) has become quite successful in implementing its merger policy. Earlier, the central bank had announced packages of rebates, discounts, waivers and facilities to the BFIs opting for mergers. But now, the bankers themselves believe that merger has become compulsory for many banks which are suffering from the problem of low capital base and limited geographical coverage.</p>
<p>
	Similarly, a wave of Initial Public Offerings (IPOs) has started among the new BFIs. In the last Nepali calendar year that ended on mid-April, 20 BFIs issued IPOs, issuing shares worth Rs 5.6 billion. More offering such IPOs are in the pipeline. Though BFIs can increase their capital base also through Further Public Offering (FPO) of their shares, very few of them have opted for this route.</p>
<p>
	<strong>Need for Merger</strong></p>
<p>
	Apparently, the universal objectives of the merger or acquisition are to consolidate the capital, reduce operational expenses, expand business and maximise profits.&nbsp;</p>
<p>
	However, in our case, mergers of three distinct natures now seem to be in the offing.&nbsp;</p>
<p>
	Firstly, relatively large institutions are planning to create a larger capital base so they could compete with global players who could potentially begin their operations here owing to WTO arrangements.&nbsp;</p>
<p>
	The second type of merger would be compulsive of sorts as the NRB has asked the BFIs belonging to the same business house to integrate without any “ifs and buts’’.&nbsp;</p>
<p>
	The third types are those who fear the complete meltdown if they fail to merge soon to consolidate resources, introduce corporate best practices and reduce expenses.&nbsp;</p>
<p>
	Consolidation is becoming increasingly necessary as banks are struggling to give returns to their shareholders. Almost all BFIs are eyeing mergers, and the number of BFIs will come down notably in the next three years.</p>
<p>
	However, bankers say more incentives are needed to speed up mergers, particularly between commercial banks. For example, they have been demanding decrease in corporate income tax to 20 percent from the current 30 percent for a merged BFI.</p>
<p>
	As there is no environment for increasing capital by issuing rights shares and bonus shares as that will not be enough to raise capital to the required level, finance companies have no other&nbsp;option than to go for a merger. Many finance companies have thought that’s it’s better to opt for a merger than to face action from the central bank for failing to increase the capital to the required level next year.</p>
<p>
	Also the shaken public confidence on towards banking institutions due to recent problems in the banking sector and their inability to give proper returns to their shareholders, has forced the BFIs to increasingly lean towards consolidation.&nbsp;</p>
<p>
	Consolidation is necessary also to increase the paid-up capital since the possibility to increase of paid up capital by issuing rights shares is very slim. Moreover, the size of loans being demanded by single borrowers has been increasing in recent years. So, BFIs having low paid-up capital cannot fulfill such demand.&nbsp;</p>
<p>
	Similarly, merger becomes an urgent need also because due to the terms agreed by Nepal while gaining membership of World Trade Organisation (WTO), financail services sector is open for foreign investors beginning 2010. So, foreign banks can open their branch in nepal. If big foreign banks open their branches in Nepal, the Nepali banks with small capital base may not be competitive.</p>
<p>
	<strong style="font-size: 12px;"><span style="font-size: 12px;"><br />
	</span></strong></p>
<p>
	<strong style="font-size: 12px;"><span style="font-size: 12px;">The Journey of BFIs Mergers in Nepal So Far</span></strong></p>
<p>
	The journey of merger of Nepali banks began nine years back. In 2004, Laxmi Bank merged into it Himalayan Saving and Finance Company (HISEF), and it was done according to the broad provisions of Company Act and Bank and Financial Institution Act (BAFIA). The then Narayani Finance and National Finance had merged to become Narayani National Finance following the same Acts. Similarly, Himchuli Development Bank and Birgunj Finance merged and became H &amp; B Development Bank aalso merged under the same act.</p>
<p>
	That experience highlighted a need for special rules to govern this process. But was only in May 2011 that Nepal Rastra Bank came up with a special rule to facilitate mergers between BFIs.</p>
<p>
	When Nepal Rastra Bank (NRB) introduced the Merger By-laws in May 2011, many had still doubted whether Nepali banks and financial institutions (BFIs) would go for mergers as the concept was a relatively new for the country. &nbsp;That doubt seemed valid for some time. But soon a merger spree started among BFIs. Birgunj Finance and Himchuli Bikas Bank sought LoI from NRB in 2004 and completed their merger the same year becoming H&amp;B Development Bank. The process gained memorandum after that. (See box for the list of BFIs merged so far.)</p>
<p>
	<img alt="Nepal Rastra Bank" height="345" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_nrb.jpg" style="margin: 0 10px 0 0;" width="595" /></p>
<p>
	As the list on the box shows, most of the BFIs that have chosen to merge are development banks and finance companies merging with another institution of same category or with a commercial bank. However, latelycommercial banks too have started merging with another commercial bank. The recent such example is the merger process started by Bank of Asia Nepal and Nepal Industrial and Commercial Bank Limited.</p>
<p>
	<strong>Major Provisions of Merger By-Law</strong></p>
<ol>
	<li>
		<strong>‘A’, ‘B’ and ‘C’ class financial institutions can merge into each other. ‘D’ class FI can merge with another ‘D’ class FI only.<br />
		</strong></li>
	<li>
		<strong>FIs that want to merge should form a separate merger committee and sign Memorandum of Understanding (MoU).<br />
		</strong></li>
	<li>
		<strong>The due process including MoU should be completed before applying to the Nepal Rastra Bank (NRB)for Letter of Intent (LoI). NRB should hold a meeting within 15 days of receiving LoI application.<br />
		</strong></li>
	<li>
		<strong>NRB decides whether to issue LoI or not after conducting discussions and detailed study of concerned institutions.<br />
		</strong></li>
	<li>
		<strong>Due Diligence Audit should complete within six months of receiving LoI from the central bank.<br />
		</strong></li>
	<li>
		<strong>The detailed factual report comprising assets and liabilities of concerned institutions should be submitted to the NRB.<br />
		</strong></li>
	<li>
		<strong>Copy of the decision regarding name, address and share ratio of concerned financial institutions should be submitted to NRB.<br />
		</strong></li>
	<li>
		<strong>Action plan of concerned financial institution including date of operation after merger process is completed should be submitted to NRB.<br />
		</strong></li>
	<li>
		<strong><span style="font-size: 12px;">Other documents as prescribed by the NRB should be submitted to NRB.</span><br />
		</strong></li>
</ol>
<p>
	<strong><span style="font-size: 12px;">NRB can ask for merger if the following situation prevails:</span></strong></p>
<ol>
	<li>
		<strong>In case representatives of a family, business group, firm or company are found assuming posts in the boards of directors of two or more BFIs and/or their financial conditions remain unhealthy.</strong></li>
	<li>
		<strong>If the non-performing loans (NPL) exceeded 5 percent of the total loan portfolio for 3 consecutive years.&nbsp;</strong></li>
	<li>
		<strong>Increase in systematic risk (i.e. in a situation when a BFI seems likely to fail to meet liabilities).</strong></li>
	<li>
		<strong>If independent operation of a BFI is causing negative impact on the banking system.</strong></li>
	<li>
		<strong>If a BFI faces prompt corrective action (PCA) for three times or more.</strong></li>
	<li>
		<strong>If NRB finds that merger of systemically important BFIs will strengthen the entire banking system.</strong></li>
</ol>
<p>
	<strong>Facilities for Merger</strong></p>
<p>
	The new regulations have pledged relaxation on provisions for capital structure, shareholding limit for promoters, credit-deposit ratio, borrowings limit for promoters and deprived sector lending, among others.</p>
<p>
	If the merger causes increase in the shareholding percentage of any promoter beyond the stipulated limit, such promoters get five years time to bring down their stake within the limit.</p>
<p>
	Likewise, merged institutions are allowed additional three years to bring CD ratio down to the of 80 percent. Similarly, promoters get additional three years to bring their borrowing (loans) down to less than 50 percent of the total shares they hold in the merged BFI.</p>
<p>
	In a bid to lure BFIs to merger, the central bank has even promised a discount in refinance rate by one percentage point to the merged institution. It has also offered to lower penal rate on standing liquidity facility by half for three years in case two or more BFIs merged into one.</p>
<p>
	The central bank has also opened upgrading of &nbsp;fianancial institutions relaxed the restriction on upgrading of a BFI to encourage merger. A BFI can upgrade to higher category (category ‘C’ to ‘B’ and from ‘B’ to ‘A’) if the institution seeking to upgrade is formed through a merger).</p>
<p>
	The rules also promise to recommend to the government for exemption of taxes in case a BFI faces losses during the course of merger facilities include the time duration of using SLF will be expanded to 30 days from the existing 5 days for three years after completion of merger process. NRB can provide other facilities according to the need of the banks.&nbsp;</p>
<p>
	<strong>Challenges of Transition</strong></p>
<p>
	Most of the consumers do not get sense of transition of banks merger because in an ideal case, all banking services continue to function normally even during the transition. ATM cards work, checks consumers write do not bounce and consumers will be able to get the all services.&nbsp;</p>
<p>
	&nbsp;However, banks face several problems during the transition. Among others major challenges of merger are as mentioned below:</p>
<p>
	<strong>1. Brand Name</strong></p>
<p>
	The identity of the institution in the market is through the brand name. The image of an entity is joining with a brand image. So, the settlement in the brand name of the newly formed merged entity is essential.</p>
<p>
	<strong>2. Composition of board of directors (BoD) and shareholders</strong></p>
<p>
	The major decision makers in any entity are the board of directors and the shareholders. If the disputes arise among these people, the performance as well as the future of the entity will be directly hampered. So, the number as well as the persons that should represent at the BoD should be settled in cool mind.</p>
<p>
	<strong>3. Structure of the new management team</strong></p>
<p>
	The new merged entity comprises of the management team from two or more different entities. So, clear visions should be set-up for making the new management team which could handle the merged organization in coming days.</p>
<p>
	<strong>4. Employees Management</strong></p>
<p>
	As the organization is merged, at the same time the employees also come together. The major assets any organization is human resources. So, if the merged entity can not handle properly the grievances of the employees, the situation of disputes may arise. &nbsp;</p>
<p>
	<strong>5. Ownership Division</strong></p>
<p>
	The problem of division among the ownership might arise in the merged entity. The questions of shareholding as well as takeover of the share equity might create division among the shareholders. &nbsp;</p>
<p>
	<strong>6. Banking Software</strong></p>
<p>
	Various types of software are being used by the BFIs for the smooth operation. Huge cost and efforts had been gone in maintain the software in an organization. But if the two different entities are using two different types of banking software, the problem as well as cost may arise in the settlement of the books of accounts.</p>
<p>
	 </p>
<p>
	<strong>Need of Separate Acquisition Law</strong></p>
<p>
	Acquisition is, however, yet to come under the legal regime in the country. The central bank has said that it has been doing necessary preparations to introduce a separate legal mechanism on acquisition to encourage consolidation of the financial sector. Acquisition of financial institutions is difficult at present since there is no related legal provision, says CEO of Kailash Bikas Bank Krishna Raj Lamichhane who is also the president of Development Bankers Association.</p>
<p>
	NRB officials say that about half a dozen banks had held talks with the central bank about the possibility of acquiring regional development banks and finance companies to reach out to new areas. Acquisition is a relatively faster process as the challenges of merger such as it can be done once the buyer and the seller reach an agreement. Bankers say the introduction of legal provisions for acquisition will help bring down the number of BFIs in the country. The central bank needs to be careful while issuing new licenses and also the ability for smaller banks to withstand the economic crisis.</p>
<p>
	<strong>IPO Attraction</strong></p>
<p>
	The Nepali investors have been showing very encouraging response to the IPO of the company, especially of commercial banks. The data of Securities Board of Nepal (Sebon) reveals that 22 companies have got approval for the IPO from mid July 2012 to till the mid May of 2013. Shares worth of Rs 5.78 billion came in the market during this period. Of the total 22 companies, eight development banks, eight commercial banks, three finance companies, one insurance company and one hydro-power company.</p>
<p>
	<strong>The Direction Ahead</strong></p>
<p>
	The foremost challenge to the country’s banking sector in the realm of merger of banks is to create an environment where major financial institutions will go for merger voluntarily, says Upendra Paudyal, vice-president of Nepal Bankers Association (NBA).</p>
<p>
	The overall financial health of merged institutions has been found to be improved so far, he opines, saying the primary intention of the merger should be to strengthen capacity of concerned banks and financial institutions.&nbsp;</p>
<p>
	The policy taken by the Nepal Rastra Bank has resulted in positive signs since the market players in the arena of banks and financial institutions have saturated, adds Paudyal says. “Merger bylaws have played very crucial role in lowering the number of BFIs.”&nbsp;</p>
<p>
	But there is a question about the way forward of merger in the banking sector. The mathematical aspect has been highlighted so far by both the government and the BFIs, Paudyal says. It is cultural aspect which largely determines the success of merger. Sincere effort from all concerned parties is a must to make a merger journey a great success in the counry, he concludes.</p>
<p>
	&nbsp;&nbsp;</p>
<hr />
<p>
	<strong>In Nutshell</strong></p>
<p>
	The first case of merger between BFIs in Nepal was the merger of HISEF Finance Ltd into Laxmi Bank Ltd in 2004</p>
<p>
	<strong>BFIs that have merged already</strong></p>
<ul>
	<li>
		Himchuli Development Bank &amp; Birgunj Finance forming H&amp;B Development Bank Ltd</li>
	<li>
		Narayani Finance &amp; National Finance forming Narayani National Finance</li>
	<li>
		Nepal Bangladesh Bank &amp; Nepal-Sri Lanka Merchant Bank forming Nepal Bangladesh Bank Ltd</li>
	<li>
		Kasthamandap Development Bank &amp; Shikhar Finance forming Kasthamandap Development Bank Ltd</li>
	<li>
		Business Development Bank &amp; Universal Finance forming Business Universal Development Bank Ltd</li>
	<li>
		Machhapuchchhre Bank &amp; Standard Finance forming Machhapuchchhre Bank Ltd</li>
	<li>
		Global Bank &amp; IME Financial Institution &amp; Lord Buddha Finance forming Global IME Bank Ltd</li>
	<li>
		Infrastructure Development Bank &amp; Swastik Merchant Finance forming Infrastructure Development Bank Ltd</li>
	<li>
		Annapurna Development Bank &amp; Suryadarshan Finance forming Supreme Development Bank Ltd</li>
	<li>
		Vibor Bikas Bank &amp; Bhajuratna Finance forming Vibor Bikas Bank Ltd</li>
	<li>
		Alpic Everest Finance &amp; Butwal Finance &amp; CMB Finance forming Synergy Finance Co Ltd</li>
	<li>
		Shine Development Bank &amp; Resunga Development Bank forming Shine Resunga Development Bank</li>
	<li>
		Pashupati Development Bank &amp; Udyam Development Bank forming Axis Development Bank Ltd</li>
	<li>
		Prudential Finance &amp; Gorkha Finance forming Prudential Finance Company Ltd</li>
	<li>
		NIC Bank &amp; Bank of Asia forming NIC Asia Bank Ltd (Process ongoing)</li>
</ul>
<p>
	<strong>Letter of Intent (LoI) Received &nbsp; &nbsp;&nbsp;</strong></p>
<ul>
	<li>
		Premier Finance &amp; Imperial Finance to form Premier Imperial Finance</li>
	<li>
		Royal Merchant Banking and Finance, Rara Bikas Bank &amp; Api Finance</li>
	<li>
		Araniko Development Bank &amp; Surya Development Bank</li>
	<li>
		Central Finance Ltd &amp; Patan Finance Ltd</li>
	<li>
		Diyalo Bikas Bank Ltd &amp; Professional Bikas Bank Ltd</li>
	<li>
		NDEP Development Bank &amp; Hama Finance Ltd</li>
	<li>
		Siddhatha Development Bank &amp; Public Development Bank Ltd</li>
	<li>
		Five Regional Development Bank to form One National Level Gramin Bikas Bank</li>
	<li>
		Shangrila Development Bank Ltd &amp; Bagheshwor Development Bank</li>
</ul>
<p>
	<strong>LoI In Pipeline&nbsp;</strong></p>
<ul>
	<li>
		Lalitpur Finance Ltd &nbsp;&amp; Progressive Finance Ltd</li>
	<li>
		Sagarmatha Merchant and Finance Ltd &nbsp;&amp; Reliance Finance Ltd</li>
	<li>
		Social Development Bank &amp; Corporate Development Bank</li>
	<li>
		Vibor Bikas Bank &amp; Kist Bank Ltd</li>
	<li>
		Manakamana Development Bank Ltd, Infrastructure Development Bank, Yeti Finance Limited &amp; Valley Finance Ltd.&nbsp;</li>
	<li>
		Khadbari Bikas Bank &amp; Birat Laxmi Finance</li>
	<li>
		Global IME Bank &amp; Social Development Bank Ltd.</li>
</ul>
<p>
	<strong>Merger Process Dumped</strong></p>
<ul>
	<li>
		Kathmandu Finance Ltd &amp; Civil Merchant Bittiya Sanstha Ltd</li>
</ul>
<div>
	<hr />
</div>
<p>
	<strong><span style="font-size: 12px;">Financial Indicators of the Merged Entities</span></strong></p>
<div>
	<p>
		The major financial indicators of the merged entities have slightly improved compared to the pre-merger situation.&nbsp;</p>
	<p>
		Machhapuchhre Bank Ltd (MBL) had a higher level of non-performing loan (NPL) before merger than of the Standard Finance Limited (SFL). The NPL of MBL was at 2.84 percent whereas; the NPL of SFL was at 0.73 percent. After the merger, the NPL of MBL stood at 2.73 percent according to the financial report for mid-July 2012.</p>
	<p>
		The Credit Deposit (CD) Ratio of SFL was very high at 104.27 percent whereas, the ratio was at good level at 74.62 percent for MBL before merger. &nbsp;After the merger the CD ratio of MBL was maintained at 73.07 &nbsp; percent. But the Return on Assets (ROA) declined below one percent.</p>
	<p>
		&nbsp;Among the three merged entities in Global IME Bank Ltd, the financial performance of Lord Buddha Finance Ltd was not good. Its Capital Adequacy Ratio (CAR) was very high at 33.76 percent. &nbsp;Similarly, the NPL and ROA of the finance company were at 3.99 percent and -0.61 percent respectively. The NPL of merged entity, Global IME Bank Ltd stands at 1.54 percent as of the third quarter report of the FY 2012-13. At the same time the ROA is at 1.13 percent.</p>
	<p>
		Similarly, in Vibor Bikas Bank after merger of Bhajuratna Finance &amp; Saving Co. Ltd. has a high level of CAR at 14.42 percent but at the same time the level of NPL has increased to 32.63 percent till the third quarter of the F/Y 2012-13. The ROA of the bank is also seen negative. It is at -1.95 percent.&nbsp;</p>
	<p>
		Vibor Bikas Bank is again going ahead with a proposal of merger with Kist Bank Ltd. &nbsp;The NPL of the Kist Bank Ltd is seen comparatively lower than of the Vibor Bikas Bank. The ratio was at 32.63 percent and 7.89 percent for Vibor Bikas Bank and Kist Bank respectively as of third quarter of the F/Y 2012-13. &nbsp;Both the banks have posted the negative ROA during the third quarter of the FY 2012-13. Similarly, Vibor Bikas Bank has not been able to maintain the good level of CD ratio during the period.</p>
	<p>
		Recently, Bank of Asia Nepal Ltd and NIC Bank Ltd have received LoI from NRB for merger. The banks have already announced a plan to publish their combined financial report of the fourth quarter of F/Y 2012-13 in the name of the merged entity, NIC Asia Bank Ltd. Both the banks’ indicators show that they are in a financially sound position. After the merger they are likely to emerge even stronger in the banking market.</p>
	<p>
		<img alt="Financial Indicators of Some Merged and to be Merged BFIs:" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_financial_indicators.jpg" style="margin:0 10px 0 0;" /></p>
</div>
<div>
	<hr />
	<p>
		<strong style="font-size: 12px;"><span style="font-size: 12px;"><br />
		</span></strong></p>
	<p>
		<strong style="font-size: 12px;"><span style="font-size: 12px;">‘Merger is a need of the entire financial system’</span></strong></p>
	<p>
		 </p>
	<p>
		<strong><img alt="Bhaskar Mani Gyawali, Spokesperson, NRB" height="240" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_bhaskar.jpg" style="float:left; margin:0 10px 0 0;" width="200" />What &nbsp;is the situation of merger in the banking and financial Institutions (BFIs)?</strong></p>
	<p>
		The trend of merger in BFIs has grown lately. &nbsp;After the introduction of Merger Bylaws in 2011 by Nepal Rastra Bank (NRB), 22 financial institutions merged to become 10 within a year. This is very encouraging.</p>
	<p>
		<strong>Why is there a need for merger in the financial market?&nbsp;</strong></p>
	<p>
		Financial institutions have mushroomed in the country, thanks to the liberal policies adopted by Nepal Rastra Bank in the past. Given the size of our financial system, the number of BFIs looks more than normal. Many of these institutions had invested in the real estate sector without any long-term benefits. NRB was forced to fix a ceiling on real estate investment by banks after a surge in the volume of nonperforming loans.</p>
	<p>
		Investment by financial institutions in unproductive sectors caused a liquidity crisis in the market. These institutions also failed to maintain corporate governance. &nbsp;Financial institutions should be able to return money to depositors as required. NRB had introduced Merger Bylaws 2011 to improve the condition of financial institutions.</p>
	<p>
		<strong>Why are there no expected improvements in merged institutions?</strong></p>
	<p>
		Merged organizations are much improved in comparison to single and troublesome financial institutions. The process of merger has helped institutions increase their capital base and ability to return the people’s money.&nbsp;</p>
	<p>
		<strong>Can you briefly tell us the merger process?</strong></p>
	<p>
		Merger is a need of the entire financial system of Nepal. The share swap ratio is obviously an issue of tension in the pre-merger phase. NRB provides counseling services to all institutions which want to go for merger. The process is very simple. At first, the BFIs should take the special decision of merger thorough the General Meeting of shareholders. Then they should sign a Memorandum of Understanding (MoU) for merger. Then, after forming a merger committee, they should apply to the central bank for the Letter of Intent. NRB conducts interaction with concerned stakeholders and provides insights including strengths and weaknesses of the merging BFIs. If BFIs want to continue the merger process even after the interaction, NRB approves the LoI. Concerned financial institutions should approve new structure which will come into effect after the completion of the merger process.</p>
	<p>
		&nbsp;NRB should always deal the entire merger process carefully because merger should not promote monopolistic business.</p>
	<p>
		<strong>What are the post-merger complications? Does NRB intervene if complications arise in the post-merger phase?</strong></p>
	<p>
		Some minor complications are inevitable in the post-merger phase. Salary disputes, implementation of new structure and other managerial work create several complications. NRB provides the necessary assistance if the situation so demands. Similarly, the central bank may opt for positive intervention if the post-merger complications start to hurt the entire transactions of the concerned BFI.</p>
	<p>
		<strong>Are the BFIs reluctant for mergers?</strong></p>
	<p>
		Definitely not. But merger is a complex process. Two or more institutions can opt for a merger when they develop a sense of mutual trust. Many chiefs have to agree to make one chief. Jumbo administrative committees have to be downsized. The present scenario of mergers is pretty exciting.</p>
	<p>
		<strong>Is merger a less attractive proposition because of the low incentives for the same?&nbsp;</strong></p>
	<p>
		First, organizations should be aware about the merger process. They should be aware that merger is not for NRB but for them. This is because it is their responsibility to make the organization stronger and sustainable. Providing different incentives and schemes to organizations is like luring a child by giving them chocolates. It is unnecessary to entice them like that.&nbsp;</p>
	<p>
		<strong>The incentives provided to the merging institutions have been discontinued. What about reintroducing these insentives to the institutions that will merge now ?</strong></p>
	<p>
		NRB couldn’t continue the facility because of the incomplete budget. &nbsp;As soon as we have a full budget, NRB will renstate these facilities. The central bank is committed to facilitate the merger process.&nbsp;</p>
	<p>
		<strong>Where has NRB’s preparation regarding bylaws related to acquisition reached?</strong></p>
	<p>
		Legally, BFIs &nbsp;which want to acquire the stake of any &nbsp;other financial institution can do so. The only difficulty is that NRB does not have any specific guideline and legal provision to tackle the issue of acquisition. NRB, however, is very supportive if any financial institution wants to acquire the stakes of other institution.</p>
	<p>
		<strong>Is NRB considering forced mergers?</strong></p>
	<p>
		 </p>
	<p>
		NRB is not for forced mergers because there is a need for mutual bonding in order to operate the merged entity smoothly. But NRB might force institutions which are in miserable financial status and cannot improve the same over a period of time.</p>
</div>
<div>
	<hr />
</div>
<p>
	<strong>Initial Public Offering in Banking Sector</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<img alt="Niraj Giri" height="270" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_niraj.jpg" style="float:left; margin:0 10px 0 0;" width="200" />The capital market is a mechanism created to facilitate the exchange of financial assets with a maturity period of more than a year. It is a broad term embracing the buyers and sellers of securities and all the agencies that assist the sale and resale of securities.&nbsp;</p>
<p>
	Capital market activities started in Nepal in 1937 with the issuance of the shares of Biratnagar Jute Mills Ltd. However, a more structured market activity started with the establishment of a stock trading mechanism in 1976 along with the establishment of the Securities Exchange Center. Enactment of the Securities Act and establishment of the Securities Board in 1983 gave the impetus for the development of capital market in Nepal in a more organized manner. In the early 90s after the success of the first People’s Movement, the government adopted liberal economic policies and opened up various areas to the private sector. This paved the way for the entry of private banks into the country’s financial market.&nbsp;</p>
<p>
	With the opening up of the economy, banks and financial institutions (BFIs) from the private sector have been in the forefront of making initial public offerings (IPOs). The IPOs of BFIs are also the most sought-after IPOs in the secondary market. In fact, most of the trading that takes place in the secondary market is that of the shares of companies from the banking and financial sector. So, this sector has played a major role in the development of our capital market., the number of companies listed at Nepal Stock Exchange (NEPSE) as of May 17, 2013 was 224 of which 29 are commercial banks and 142 development banks and finance companies. Besides, 68 per cent of the daily trade at NEPSE is of the shares of commercial banks. This shows that the secondary market in Nepal is highly dominated by the banking sector. Why is this sector so dominant?</p>
<p>
	There are various reasons. First and foremost is the licensing requirement of Nepal Rastra Bank (NRB), the central bank. NRB has made it mandatory for BFIs to issue their shares to the public. BFIs have to go for IPOs within two years of obtaining the operating license from the central bank. Besides, in IPOs, funds flow from the provider to the user. This means the contribution of IPOs to financing companies is direct in the sense that it provides them with additional funds for either starting a new business or expanding or diversifying the existing ones. This might not sound true for banking sector companies. However, IPOs fetch them funds which they can use to lend or to meet the various other requirements such as capital requirement set forth by the regulator. IPO also gives the public investors a partial ownership of the company and an opportunity to be represented at its board of directors. This representation of public directors in the board helps to bring about transparency and good governance at the higher echelon of the company.</p>
<p>
	When Janata Bank Ltd &nbsp;issued an IPO worth Rs 600 million last year, it was believed that the bank had ill-timed the issuance as the secondary market indicator, the NEPSE index, was bearish. &nbsp;Investors were pulling out of &nbsp;the secondary market and the merchant bankers related with the IPOs, too, were worried about the subscription. However, when the IPO closed, the issuance had been oversubscribed by 2.43 times. This showed that the investors still had confidence in the IPOs of commercial banks. The IPO of Janata Bank was followed by that of Civil Bank Ltd which &nbsp;issued an IPO worth Rs 800 million which, in turn, was oversubscribed by 6.38 times. Recently, Commertz &amp; Trust Bank Ltd made an IPO worth Rs 600 million which was oversubscribed by 11.64 times. During the same period, IPOs of some development banks and finance companies were undersubscribed or even cancelled.&nbsp;</p>
<p>
	NRB has put a lot of emphasis on good corporate governance practices in the banking sector and banks are under constant supervision of the central bank. Barring a few, most banks have been giving good returns, in terms of cash dividend and bonus shares to their investors. The investors, too, have benefitted from a higher capital gain from the trading of shares of banks, compared to those of companies from other sectors. There is also a belief amongst the investors that commercial banks do not fail. This has boosted the investors’ confidence in banking stocks.&nbsp;</p>
<p>
	Both the government and the central bank have been persuading the BFIs for mergers in order to strengthen the banks and consolidate the growth of the financial sector. Some financial institutions have opted for merger and the effects of this will be seen on the market in the coming days. Though difficult, mergers will definitely strengthen the banks' capital base and enhance their operational efficiency through synergic effects. This, in turn, will attract more investors to banking stocks.&nbsp;</p>
<p>
	<span style="font-size:10px;">(The author is a Director at SEBON)</span></p>
<div>
	<hr />
</div>
<p>
	<strong>Problems of Merger</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<img alt="Krishna Raj Lamichhane" height="270" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_krishna.jpg" style="float:left; margin:0 10px 0 0;" width="200" />The country’s banks and financial sector witnessed a significant change with the introduction of merger bylaw by Nepal Rastra Bank (NRB), the central regulatory body of banks and financial institutions (BFIs). The bylaw has provided unique opportunities to BFIs to overcome the problem of capital inadequacy.</p>
<p>
	Nepal Rastra bank enacted merger bylaw in 2011 and the pace of merger have accelerated after that. The reasons of mergers among banks and financial institution is obvious, they want expand their presence in the market. Some major reasons of merger are as mentioned below:</p>
<p>
	<strong>Increase capital base:</strong> The reason of most of the mergers is that banks want to increase their capital base. The central bank has urged banks to enhance capital base to expand their services into the urban areas especially in the capital.</p>
<p>
	<strong>Expand services: </strong>Banking consolidation helps concerned institutions expand their services. For instance, merger provides opportunities of utilizing each other’s brand and public relation jointly. Banks and financial institutions can expand their services after increasing their capital base. Similarly, merger helps banks to increase investment capacity that will make them capable of investing in huge projects.</p>
<p>
	<strong>Implementing new and innovative ideas: </strong>Banking consolidation through merger will allow BFIs to explore chances of coming up with innovative ideas. Together, the banks and financial institutions can enhance their operation system and implement effective management.</p>
<p>
	However, the process of merging of banks and financial institutions is not free of hassles. There are basically two types of hassles to complete the merger process: i) external or created by the regulator and ii) internal or the managerial problems within banks and financial institutions.</p>
<p>
	At present, the central bank has made it mandatory to stop trade of shares after starting the merger process which, I think, should be changed. I do not see any logic and rationale behind this provision.&nbsp;</p>
<p>
	Similarly, the government does not provide any facility to the banks and financial institutions which want to be merged. I feel that the government should reduce corporate tax to 25 per cent from existing 30 per cent for five years after merger process complete. It is necessary because BFIs should invest huge chunks of money in managerial activities to complete the merger process. It is really challenging to ensure smooth transition and resolution of conflict likely to surface among the staff due to hostility, ego clashes or layoffs during the merger process.</p>
<p>
	It is a fact that the existing merger process between various financial institutions seem to be more forceful in nature. I do not mean that the Nepal Rastra Bank has put any pressure for mergers but the circumstances have made BFIs merge. I think the government should create an environment where banks and financial institutions voluntarily show their readiness to be merged.</p>
<p>
	<span style="font-size:10px;">(Writer is Chairman of Development Bankers Association and CEO at Kailash Bikash Bank)</span></p>
<div>
	<hr />
</div>
<div>
	<div>
		<strong>Merger and Its Challenges</strong></div>
</div>
<div>
	<strong><br />
	</strong></div>
<p>
	<img alt="Guru Prasad Paudel" height="270" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_guru_prasad.jpg" style="float:left; margin:0 10px 0 0;" width="200" />Business organizations can combine with each other in a various ways. One of the most common approaches is Mergers and Acquisition (M&amp;A), which combine independent firms under common control. After unveiling a merger bylaw, the practices of M&amp;A in Nepali banking sector has been increasing tremendously. Around two dozen BFIs merged each other and created 13 institutions. More than two dozen BFIs have got the letter of intent (LOI) to go for the merger. Even if merger has been practiced in the financial sector to cope the various issues, there has been no real academic effort to extensively appraise how employees are reacting, adapting and coping with the new realities in the post– merger period as well as how BFIs are achieving their business targets.&nbsp;</p>
<p>
	Furthermore, we should not forget that in achieving the objective of BFIs merger, quite a number of intrinsic risk factors may be involved both during and post merger period which should have to be address by regulators as well as by bank BOD and senior management level.&nbsp;</p>
<p>
	Literature says, merger that has been practiced internationally is not less challenging. Some inherent features of merger as well as some country specific problems add more challenges in it. In the past, tangible aspects (e.g. capital, raw materials, equipment etc.) were the major issues of merger. Now the scenario has changed, and intangible aspects (e.g., human capital, culture, knowledge, goodwill, brand etc) are emerging as key challenges. &nbsp;</p>
<p>
	We adopted merger strategy very lately; though it has more than 120 years long history internationally. Nepal dose not have separate Act about M&amp;A, so there may arise some legal risk in the future. Today, large BFIs desire to acquire small financial institutions but we have no Acquisition provisions. M&amp;A is significantly affected by the geo-political condition of the country. Present situation of our country is unfavurable for mergers because of the rise in concept of divergence and dissolution, which is a serious external threat for merger. Lack of specific Act and provisions regarding acquisitions and geo-political scenario are major challenges. Besides these, some challenges and problems are as follows:&nbsp;</p>
<ul>
	<li>
		Top executives and top level management team may leave unexpectedly. When they leave the merged organization the expected synergy will be evaporated.</li>
	<li>
		Expected synergies evaporate also because of cultural differences. Research says only 23 percent of all M&amp;A earn their cost of capital.</li>
	<li>
		Data migration plays vital role in the merger, sometimes this single task will be multi-time expensive than other factors of merger.&nbsp;</li>
	<li>
		Expenses get increased because of disposal of old stationeries, write-off provisions of duplicated branches.&nbsp;</li>
	<li>
		Power politics can be a major obstacle to the success of M&amp;A.</li>
	<li>
		Agency problem is another key challenge of M&amp;A.</li>
	<li>
		Who are going to leave from the BOD &nbsp;will be an anxious issue.&nbsp;</li>
	<li>
		It further creates anxiety while selecting CEO or top level management officials because the institutions undergoing merger have their own individual CEO or higher management authorities.&nbsp;</li>
	<li>
		Due Diligence Audit Report (DDAR) does not give accurate price of the institutions hidden contingent liabilities may get added which further enhance the challenge in the merger.&nbsp;</li>
	<li>
		Management of employee of duplicated branches is yet another high value expense occurred due to merger.</li>
</ul>
<p>
	<span style="font-size:10px;">(Writer is Deputy Director at Nepal Rastra Bank. The views expressed here do not necessarily represent the views of NRB)</span></p>
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<p>
	Armed Police Force, an alternative police force of Nepal, has recently informed that it will mobilize the Industrial Security Force (ISF) as soon as the government adopts the ‘The Directives Relating to Customs, Revenue and Industrial Security.’ It is good news for fledgling industrial sector of Nepal, in a sense that something is certainly better than nothing.</p>
<p>
	For more than a decade now, industrial security has been a main concern for Nepal’s industrial and business sectors. The facets of insecurity are many. Industrialists and business people are often kidnapped, killed, threatened or extorted. Factories and businesses are forced to close down. Barriers are created for products reaching the markets, etc. This has had a very crippling effect on industrial growth, investment climate and overall expansion of the economy. As the result, the contribution of manufacturing sector to country’s GDP has gone down in the recent years and all along has remained far below its potential, much lower than the agricultural and service sectors.</p>
<p>
	In our context, industrial security is a complex issue since the insecurity stems out from a multitude of sources, mainly from the politically protected powerful formal or informal outfits. For this reason, a number of measures of industrial security of bureaucratic nature announced by different governments during last one decade have neither protected the industries nor the industrialists.</p>
<p>
	Therefore, more important than a force to be set-up, at first place, there must be a political commitment and honest implementation of the same if an effective security were to be provided to the sector. As long as the political parties, specifically some top leaders of major parties, continue to protect and nurture the criminal gangs and notorious dons, any security force of proposed nature will be rendered ineffective in no time. That is what has happened so far. Similarly, the violent activities that take place in the name of trade unions affiliated to these political parties is another headache, which in fact has in recent years forced a number of industries and businesses to close down permanently. In addition to it, frequent strikes and blockades very often organized by this or that political party are other main reasons of insecurity.</p>
<p>
	If the country is indeed determined to provide industrial security, it must first come in the form of political commitment of all reckonable political forces. They must be able to reign in their respective trade unions so as to prevent them from acting as ‘licensed criminal organizations’. Rampant impunity is another equally alarming phenomenon. Even if one is caught with reasonable evidence of involvement in criminal activities that jeopardize the industrial security, he is hardly punished. Political protection, corruption or legal loopholes set them free sooner than one could imagine.</p>
<p>
	Undoubtedly, an effective industrial security is possible only when the overall law and order situation of the country improves, political forces stop impeding the justice and making their unions an extortion apparatus. But, at the industry level, right of ‘hire and fire’ to the employer would give another level of security to the industries. This will put all those elements at bay who claim to be workers but never work in the industry but in the political front.</p>
<p>
	Equally crucial is an industrialist and businessman being true to his profession. If the business people align themselves with this or that political force, or habour political ambitions, they are naturally opposed by the rival political forces. It is no secret that a large number of businessmen clandestinely finance the political parties and leaders, not only because of compulsion but as an ‘investment’ at their free will. These activities certainly do not help to consolidate their security situation. For the proposed force to be effective or mere functional, political commitment on the part of parties and professionalism on the part of industries are minimum prerequisites.</p>
<div>
	<img alt="Mirage of Industrial Security" height="263" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/from_the_editor_june2013_image.jpg" style="margin:0 10px 0 0;" width="595" /></div>',
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			'keywords' => 'Mirage of Industrial Security, From the editor, editorial, New Business Age, June 2013',
			'description' => 'Armed Police Force, an alternative police force of Nepal, has recently informed that it will mobilize the Industrial Security Force (ISF) as soon as the government adopts the ‘The Directives Relating to Customs, Revenue and Industrial Security.’ It is good news for fledgling industrial sector of Nepal, in a sense that something is certainly better than nothing.',
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			'title' => 'Century Of Indian Cinema: The South Asian Message',
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			'content' => '<p>
	<em>Indian Cinema has turned a hundred years. And as it grew in shape, size, craft, value and visibility globally, it had love-hate relations in the South Asian region, whether in Nepal, Pakistan and Bangladesh. How have the relations of Bollywood with people and governments in South Asia evolved?</em></p>
<p>
	<strong>The 100 Years and Journey So Far</strong></p>
<p>
	Indian Cinema, not Bollywood, has completed a hundred years in May 2013, considering the release of the Marathi classic Raja Harischandra by father of Indian cinema, Dada Saheb Phalke, in May 1913 as the inception of Indian Cinema. Though the global face of Indian Cinema is surely Bollywood, the large-scale Hindi films from Mumbai, there are much more to the art and craft of cinema from India, specially the films in Malayalam, Bengali, Marathi, Tamil and Telugu languages. The non-Hindi films from India are equal in number and value of business to the Hindi films, all totaling some 1200 films in 2012 bringing in some USD 3.6 billion revenue. This is more than double the number of films produced by Hollywood though the revenue is more than a trillion dollars in Hollywood. The spread of the Indian cinema industry’s oeuvre is amazing. The films are shown in some 100 overseas markets, catalyzing the growth of trans-national creative networks, collaborations. Big studios Columbia, Disney and 20th Century Fox are now striking co-production deals with Indian companies.</p>
<p>
	<strong>Bollywood &amp; Pakistan:</strong></p>
<p>
	In the South Asian markets, especially in Pakistan and Bangladesh, Indian cinema was officially banned for long. However, that did not help the local entertainment industry and Indian cinema found pirated ways into the houses of people wanting the same.</p>
<p>
	The 1960s marked the high point of Pakistan’s film industry, when Abbot Road in Lahore filled with smart art-deco cinemas playing the latest colour offerings to packed houses. Today, the heart of movieland is dead. The 1998 hit Choorian briefly revived the industry. Its tale of a city boy who falls in love with a country girl promised to another man, was first dismissed by critics as derivate, but it proved a huge hit with movie audience who loved the way it pinched a proven Bollywood formula.</p>
<p>
	Pakistan had banned Indian films after going to war with its neighbor in 1965 but over the past few years, as relations between the nuclear-armed rivals have improved, authorities have been allowing a trickle of Indian films to be shown in cinemas. That has delighted movie fans and cinema operators but Pakistani film producers fear a flood of Indian films could mean the end of the local film industry.</p>
<p>
	However, in recent years some of Pakistan’s hottest talent has moved to Mumbai. Ali Zafar, one of the country’s biggest pop stars, made his Bollywood debut this year in Tere Bin Laden. Beena Malik, singers Nusrat Fateh Ali and Rahat Fateh Ali and many others are all too known. Add in a stagnating economy and criticism of Lollywood’s bawdy movies by Islamic groups, cinema in neighbouring India seems an attractive destination for young stars. Nilofar Bakhtiar, who chairs the Pakistan Senate’s standing committee on culture and tourism, suggested strengthening ties with Bollywood to help revive Lollywood’s fortunes, including film training opportunities. But the suggestion would lead to a faster exodus of talent to India, according to Qaisar Sanaullah Khan, secretary of the Pakistan Cinema Owners’ Association.</p>
<p>
	For long, competition from Bollywood fare as well as the mediocrity of Pakistani films means that many Pakistanis opt to stay at home and watch Indian movies on pirated DVDs. Cinemas have been struggling for years and many operators have given up and sold off their premises which have been converted into shopping centers or offices. From about 750 cinemas nationwide in the 1970s, there are now 300. But Indian films are breathing life back into Pakistani cinemas. Cinema operators are cashing in on the revival of interest in the cinema the Indian films have generated. Before screenings of Indian films began, a cinema ticket in Karachi cost less than 100 rupees. Now it is 150 rupees or more. Pakistani film distributors also welcome the revival of cinemas.</p>
<p>
	<strong>Bollywood &amp; Bangladesh:</strong></p>
<p>
	It’s official. After being exiled for 39 long years since 1972, Indian films were set to release in Bangladesh since late 2010. It’s no secret that Bollywood films are immensely popular across the border in Pakistan and Nepal, and Tamil films in Sri Lanka. However, thanks to protectionist measures by the Bangladesh government, Indian films have long been banned there. The rationale behind the ban that came into effect in 1972 after India won independence for them from Pakistan was to protect the fledgling Bangladeshi film industry. In theory, it was not a bad idea.&nbsp;</p>
<p>
	But the lawmakers forgot one small thing. In the information age, getting access to Indian films through illegal means is extremely easy. And the Bangladesh audience prefers Indian films, as the high number of shops selling illegal DVDs and the small number of cinemas in Dhaka testify.</p>
<p>
	In January 2010, Bangladesh decided to allow the release of Indian films but this happy period lasted only six months as aggrieved local filmmakers cried foul and appealed against the decision. Thus, Indian films were banned again. Now, cinema owners, fed up with the lack of local interest in local fare, appealed to the court to allow Indian film imports and the courts have agreed, leading to official Bollywood releases in Bangladesh since September 2011.</p>
<p>
	First of all, in the age of globalization and free sky we cannot keep resisting foreign culture to creep into our society. The popularity of Hindi cinema is immense not only in Bangladesh but also across the world. And people around the world can easily get access to the cable and satellite television. Moreover, DVD and free download of movies from the internet have made it even easier for the middle and upper class viewers to enjoy Hindi or English movie at will. These alternatives do not include the marginal class of the society. The irony is the middle-class in the country rarely go to cinema hall to watch Bengali cinema or keep themselves updated about news and views of Dhaliwood. It is strongly believed that the target population of Bengali cinema is no other than the rickshaw pullers, garments workers and other wage labourers. The quality of Bangladesh cinema is quite understandable in terms of its technical aspects and storyline, which are not comparable with any other country’s cinema such as Indian, or even Pakistan and Nepal.</p>
<p>
	&nbsp;One can easily ask why the ‘cinema protectors’ do not protest against English cinema or Hindi cinema shown on satellite TV or in the internet. The reason is quite obvious. It is either their family members who are direct consumers of those sources or they have no hand to regulate the sky. But, they only can regulate the taste and fate of the marginal people and cinema halls as they wish.</p>
<p>
	Also, the concept of ‘culture’ is not so easy to understand what we perceive it to be. It has different facets and dimensions which can encompass time and space and influence people in another society. We use the concept ‘culture’ without much thought and conceptualize it which is why the concept remains a vague one in academia and even in the socio-political sphere. Dhaliwood producers and exhibitors are now understanding that if their own cinema quality falls and cannot evoke the audience to the cinema hall what will happen to some 800 cinema halls that still survive across the country?</p>
<p>
	<strong>Bollywood &amp; Nepal:</strong></p>
<p>
	The making of Nepali films is said to have begun with D.B. Pariyar’s Satya Harishchandra, which was the first Nepali-language film to be shot. It was produced from Kolkata, India, and was released on September 14, 1951. Aama (meaning mother) was the first film produced in Nepal and was released on October 7, 1964. It was produced by the Information Department of His Majesty’s Government of Nepal. The first film to be produced under a private banner was Maitighar, which was released at the end of 1966 by Sumonanjali Films Pvt. Ltd. Although it was a Nepali movie, it had many Indians contributing toward its making. The Nepal government established the Royal Nepal Film Corporation in 1971. Mann Ko Bandh was the first film produced by the corporation. It was followed by Kumari (the first Eastman color Nepali film) in 1978, Sindoor in 1980, and Jeevan Rekha in a series. Their success opened up the avenue for private parties to enter into filmmaking as an industrial endeavor.</p>
<p>
	In 1990, Nepal witnessed important political change. The people’s movement brought the monarchy to its knees and democracy was restored. The society started to become open and vibrant. This had an important consequence for the fledgling film industry: It began to grow rapidly or even to “bloat”. There was an unprecedented growth in the number of productions. Within three years, some 140 films were made. Distribution started to develop. Market share in the existing market increased and the market itself expanded. Cinema halls increased to more than 300. Nepali filmmakers became optimistic of displacing Hindi films, which had dominated the Nepali market earlier.</p>
<p>
	The start of the Maoist revolution in Nepal in the mid-1990s was the beginning of the downfall of the domestic film industry. There was an unwritten ban on Hindi films too for quite some time. In the period of war and conflict, a very small number of films were made, and audience numbers fell sharply. It resulted in lower budgets and even lower performances, which resulted in even smaller audiences. In the later years of the conflict, the production and release of Nepali films had almost come to a standstill. Many actors and filmmakers left the country in search for work abroad.&nbsp;</p>
<p>
	Also, during the 1990s, some filmmakers, mostly with non-fiction base, started championing a new kind of cinema. They denounced the crude imitation of Bollywood aesthetics and demanded indigenous aesthetics and a more realistic approach. They made some films which have received some critical acclaim at home and some international recognition. Historic movies like Balidaan and Seema Rekha made during this period were appreciated both by critics and audience.</p>
<p>
	By 2006, the situation in Nepal calmed down. With the Maoists coming into mainstream politics, the Nepali film industry started to return to its previous state. Today, more films are being made and released. The production companies and those in the industry are enthusiastic about the country’s new situation. The return of peace has opened more venues for the shooting of films, and the industry is seen to be making good use of this time to revive its image.</p>
<p>
	<span style="font-size: 12px;">New generation moviemakers geared up to make sensible cinema with entertainment rather than Bollywood inspired socio-actions. Kagbeni, Sano Sansar, Mero Euta Saathi Cha,First Love, Kohi Mero, etc. are some of the fine examples of quality cinema in terms of presentation, performance, story and technical superiority. However, they lacked in connecting with the audience. In January 2012, a film named Loot was released which emerged as a blockbuster. It was also the first movie in decades to be screened more than 100 days in the cinema halls. Much recently Chapali Height broke opening weekend gross by earning 8.4 million at the box office, breaking one of the records held by Loot, but Loot still holds the distinction of the highest grosser by far.</span></p>
<p>
	After banning Hindi films in 2012, the breakaway faction of Maoists led by Mohan Baidya was forced to withdraw the ban within a few weeks ahead of the festive season. The party had imposed a ban on ‘vulgar’ Hindi movies in a bid to ‘safeguard national sovereignty’ and ‘promote a self-reliant economy’. Multiplexes and single screen theatres in Kathmandu began screening ‘Barfi’, ‘Heroine’, ‘Oh My God’ and ‘Kamal Dhamal Malamaal’---Hindi movies which were released before screening was stopped.</p>
<p>
	Due to the ban hall owners were either forced to down shutters or screen Nepali movies in few screens on discounted rates. But the response from movie goers was not enthusiastic. Movie halls incurred losses valued at nearly NRs 2.5 crore ( Rs. 1.5 crore approx) during the 10 days from October 1 to October 10, according to Ashok Sarma, managing director of Digital Cinema.</p>
<p>
	<strong>Conclusions:</strong></p>
<p>
	Given the complex reality of globalization in the age of free information and entertainment, we need to reconsider our cultural boundary and perception very seriously. Before anything else, we need to be more logically political and less emotionally cultural.</p>
<p>
	“Filmmaking is like a nuclear power. If used properly, it can immensely help mankind. And if misused, it can destroy many minds,” says the noted alternative film-maker of Assamese origin, Jahnu Barua. There can be cross-cultural flow through cinema across South Asia and this can help develop people-to-people relations.</p>
<p>
	Often the anti-woman or commodification of sex and violence through a large number of Bollywood films are questioned by critics in other South Asian nations. And rightly so. “It’s the job of cinema to condemn inexcusable social realities and portray reality as it ought to be — only a lazy film maker will claim that it’s impossible to do both while remaining entertaining and commercially viable,” says Anna MM Vetticad, author of The Adventures of an Intrepid Film Critic. A trip to the cinema can easily be a lesson in how to objectify women: skimpy clothes, close-ups of bare midriffs and of course, ‘item numbers’. Post the December 16 Delhi gangrape, the lyrics of the Fevicol se &nbsp;song came under fire. &nbsp;However, it is important to celebrate some changes for the positive as well. Though unable to entirely shrug off their unease of independent or ambitious women (think the climax of Cocktail or Fashion), recent movies have given us heroines who are vocal and free-spirited. Movies such as Aiyya frankly depict female desire. Even sexiness is no longer the preserve of the Sheilas or the Chikni Chamelis. In Zoya Akhtar’s Zindagi Na Milegi Dobara, Katrina Kaif is presented as beautiful, attractive but the camera doesn’t letch at her.&nbsp;</p>
<p>
	Further, film talent training, giving boost to film exhibition revenue, and creating production standards to achieve by allowing Indian Cinema can easily be the benefits in other South Asian nations.&nbsp;</p>
<p>
	This is not to say that there should not be any form of protection given to local film industry and talent. Make shows of local cinema compulsory in certain time-slots, by law. Allow local block-busters to be screened in prime time too, through market forces. Let local media adequately publicize the local cinema and its talent. Let tax rebates be given to local cinema and higher entertainment taxes on Bollywood cinema. Co-opt and legalize the income coming in, do not ban and languish in revenue.</p>
<p>
	Further, let there be institutional ways of promoting South Asian cinema within India too: through South Asian Film Festivals, workshops, day-time shows in certain markets (depending on the language spoken in those markets). Pakistani Urdu based films would go well in select halls of Lucknow, Hyderabad, Mumbai and even Delhi. Nepali films will have a good market in eastern and north-eastern India specifically. Bangladeshi films are being released in West Bengal routinely. The trend needs to be encouraged further through institutional and media efforts to this end.</p>
<div>
	<span style="font-size:10px;">(The author is former Dean of Symbiosis International University and President of the advisory board at Whistling Woods School of Communication, Mumbai.)</span></div>
<div>
	<span style="font-size:10px;"><br />
	</span></div>',
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			'title' => 'ICA Gives Flavours Of Openness',
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			'content' => '<p>
	 </p>
<p>
	<strong>By Bhawani Timilsina</strong></p>
<p>
	Young professionals find it difficult to further their academic careers as it requires managing work and study simultaneously. Open universities are gaining huge popularity among such professionals. The International Centre for Academic (ICA) has been helping such &nbsp;young professionals to pursue their academic dreams since its inception in 1997.</p>
<p>
	A majority of Nepali students are quite familiar with the idea of working and studying together. However, it is a task easier said than done. Binayak Shrestha was 23 when he felt the need to enhance his academic strength for career growth. But he found it difficult to continue study and work simultaneously. Then a friend suggested him to visit ICA which runs classes for courses offered by Indira Gandhi Open University, (IGNOU). Shrestha completed his degree back in 2008. He shares, “The experience of studying at ICA helped me enhance my academic qualification and build up confidence in a completely open and flexible environment. The advancement in technology supported me and my friends to get quality education while continuing our jobs.</p>
<p>
	The revolution in the information and communications technology has brought about a sea change in the teaching and learning system. Universities around the world are making their education ‘open’ to all; technology has made it possible for students to earn degrees without physically attending these universities. Open universities offer openness in selecting courses without the barrier of “prerequisites and essentials.” The demand of open universities has been growing around the world.</p>
<p>
	Paridhi Acharya, 26, completed her post graduation from ICA in 2010. &nbsp;What made her select a course of an open university was flexible environment that it provides, especially for those students who want to take work and study side by side. &nbsp; “I am thrilled that I got a degree from such a renowned university and completed my post graduation securing high marks,” &nbsp;says one of the gold medallists of ICA.</p>
<p>
	ICA is a partner institution of IGNOU which is one of the most popular educational institutions in India, offering inclusive education to students since its establishment in 1985.Being one of the pioneers in Open and Distance Learning (ODL) in Nepal, ICA has been actively involved in resource development and research and publications related to the ODL system. So far, ICA has helped thousands of students get internationally acclaimed degrees.Students who want flexibility in study are highly attracted by distance–learning programmes, which often rely on pre–prepared study materials instead of lecturers on a daily basis.&nbsp;</p>
<p>
	<img alt="ICA Gives Flavours of Openness" height="308" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/business_education_jue2013_ics_classroom(1).jpg" style="margin:0 10px 0 0;" width="595" /></p>
<p>
	ICA presently offers 44 different Academic, Value Added and Awareness programmes through ODL mode in Management, Humanities &amp; Social Science, Tourism, Computer Science, Journalism and Mass Communication, Education, Rural Development, Health Science, Social Work, Gender and Development Studies, Extension and Development Studies, Continuing Education etc. Currently, the cumulative student strength of ICA is more than 1200. The learners enrolled at ICA are freshers or professionals from diverse fields such as hospitality, financial institutions, telecoms, corporate houses, embassies and diplomatic agencies etc. ICA also offers such programmes in collaboration with government and non government agencies through an arrangement of programme specific Work Centres and a strong network of Learner Support Centres located in different parts of Nepal.</p>
<p>
	<strong>Premium courses of IGNOU:</strong></p>
<p>
	MBA/Management Programme aimed at graduates from any stream who may/may not be working but would like to pursue a career in Management. &nbsp;</p>
<p>
	MEG aimed at providing learners with a sound base in language as well as exposure to a wide range of literature, with options for specialisation in a particular area. The learners are expected to develop confidence in their critical and analytical abilities.</p>
<p>
	MCA aimed at preparing graduate students for productive careers in software industry and academia by providing an outstanding environment for teaching and research in the core and emerging areas of the discipline.</p>
<p>
	MARD or MA Programme in Rural Development (MARD) is designed to include such diverse academic contents that are essential in the making of this discipline in the Indian Context. A critical component of this Programme is dissertation based on empirical research in rural areas. The Programme will be useful for personnel working in various Govt. Departments/agencies, NGOs, Cooperatives, Banks and other institutions engaged in rural transformation. It will also be beneficial for fresh graduates interested in pursuing careers in the discipline of rural development.</p>
<p>
	PGDJMC or Post-Graduate Diploma in Journalism and Mass Communication provides opportunities for working media personnel to enhance their knowledge and skills for their professional development</p>
<p>
	B. Ed. aimed to systematize experiences and strengthen the professional competency of in-service teachers, to imbibe the knowledge and develop understanding of various methods and approaches of organizing learning experiences of secondary school students, to develop skills required in selection and organizing learning experiences, to understand the nature of the learner and the learning processes, to develop skills required for dealing with the academic and personal problems of learners, etc.</p>
<p>
	BCA aimed at opening a channel of admission for computing courses for students, who have done the 10+2 and are interested in taking computing/IT as a career. After acquiring the Bachelor’s Degree (BCA) at IGNOU, there is further educational opportunity to go for an MCA at IGNOU or a Master’s Programme at any other university/institute. Also, after completing BCA Programme, a student should be able to get an entry level job in the field of Information Technology or ITES.</p>
<p>
	BTS aimed at providing knowledge, competence, and skills in the professional area of tourism at the Bachelor’s Degree level. This programme, like other Bachelor’s Degree Programmes, can be completed in three years.</p>
<p>
	BA or Bachelors Degree Programme which admits students from both formal and non-formal streams. The non-formal stream consists of those students who have not cleared 10+2 or an equivalent exam. To get admitted to IGNOU’s degree programme, they have to pass its Bachelor’s Preparatory Programme (BPP) first.</p>
<p>
	B. Com., in which students without a formal qualification of 10+2 or its equivalent can also seek admission and they can study at their own pace and convenience over a period of three to six &nbsp;years.</p>
<p>
	Students also get basic knowledge in the core areas of humanities, social sciences, computers and science &amp; technology as there are some compulsory foundation courses. Besides selective courses in commerce there is flexibility to choose courses from a wide range of other disciplines.</p>
<p>
	DCE or Diploma Programme in Creative Writing in English provides understanding, skills and professional knowledge about the art of writing and develops the creative ability of those interested in a professional career as a freelance writer. The curriculum is structured to impart instruction in progressive stages so as to ensure that a learner can assimilate information about a writer’s art and develop his/her creative ability. This Programme includes training in imaginative writing skills in relation to feature articles (women’s issues, book reviews, etc), writing short stories, and scripts for TV/Radio, and writing poetry.</p>
<p>
	DTS, which provides the learners with the facility to specialize in the chosen operational areas in tourism studies and helps them acquire the associated skills.&nbsp;</p>
<p>
	BPP, which is a Programme offered to those students who wish to pursue a Bachelor’s Degree of IGNOU but do not have the essential qualification of having passed 10+2. Without such a qualifying certificate, these students are deprived of higher education. To enable such students to enter higher education stream, IGNOU has designed this preparatory programme.&nbsp;</p>
<div>
	<hr />
</div>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>‘We plan to add more programmes’</strong></p>
<div>
	<strong style="font-size: 12px;"><img alt="Biswajit Mukherjee, Chairperson / MD ICA" height="315" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/business_education_jue2013_ics_chairperson_biswajit.jpg" style="float:left; margin:0 10px 0 0;" width="200" />How long have been the journey of ICA in Nepal and its association with IGNOU?</strong></div>
<div>
	<p>
		ICA was established 16 years ago in 1997. We are associated with IGNOU since 2002.&nbsp;</p>
	<p>
		<strong>What are milestones of this journey, most memorable moments or developments?</strong></p>
	<p>
		First, induction meeting for the 1st Batch of 22 learners of IGNOU from Nepal that was held in January 2003 at Dharan. It marked the start of IGNOU’s journey in Nepal. We owe thanks to all the 22 first-batch learners who believed in us though we did not have any official recognition from the government back then.&nbsp;</p>
	<p>
		IGNOU awarded us the Best Overseas Partner Institution 2010 for the best services at the 22nd Convocation of the university held on April 2, 2011. Recently, we received the Best Overseas Partner Institution 2013 Award for the Best Services from the university &nbsp;at the 26th Convocation held at IGNOU headquarters in New Delhi on April 12, 2013 which was provided by the President of India, H.E. Pranab Mukherjee. Our hard work finally paid off; ICA’s association with IGNOU has grown stronger and stronger. We are now more determined and motivated to providing better services to our learners.</p>
	<p>
		<strong>You offer both Degree and Diploma education. How do they differ in content and status?&nbsp;</strong></p>
	<p>
		Degrees are more academic in nature; the curriculum is so structured that the person undergoing the course is provided an overview of several subjects apart from one subject that the person may be interested in exploring further for both career and academic interests. It is of longer duration like 2-3 years. Diplomas focus on getting a person trained and qualified in a particular business or trade. Some of them even include a short stint of apprenticeships and on-the-job training. They are of shorter duration - maximum one&nbsp;<span style="font-size: 12px;">to one and a half years.</span></p>
	<p>
		<strong>Are these degrees equivalent to those from TU and KU in content, legality and industry recognition?</strong></p>
	<p>
		Yes all our degrees are equivalent to those from TU, KU and other universities of Nepal. Our centre is also approved by the Ministry of Education, Government of Nepal. I also take this opportunity to inform our readers that IGNOU degrees have been enjoying global recognition much before they were recognized by Nepal. It is also one of the enlisted universities by the United Nations.</p>
	<p>
		<strong>What are teaching and evaluating methods, tools and systems you use?&nbsp;</strong></p>
	<p>
		Yes, we very strictly follow the evaluation tools and methods prescribed by IGNOU and have developed a few of our own systems too which we have implemented with IGNOU’s approval. Such measures have enhanced the quality of evaluation and feedback provided to the learners.</p>
	<p>
		<strong>Who are your faculty?&nbsp;</strong></p>
	<p>
		Our faculties are the professors/ lecturers/ professionals associated with some of the leading universities or MNC’s of Nepal and India. We try to make sure that we have the best of the best faculties who are competent enough to handle the subject matter through the ODL system. We consider our faculties on a par and, in some cases, &nbsp;even more competent than the faculties of conventional universities or colleges on handling ODL system much better. &nbsp;</p>
	<p>
		<strong>What recognitions and accreditations does ICA have?</strong></p>
	<p>
		ICA is approved by the Ministry of Education, Government of Nepal. IGNOU degrees obtained through ICA are recognized by TU and KU. We are also the only member of the Asian Association of Open Universities (AAOU) from Nepal.</p>
	<p>
		<strong>What are your future plans?</strong></p>
	<p>
		We do have some big plans for the future. Now that we have been successful in establishing ourselves as one of the pioneer institutions for Open and Distance Education in Nepal, we plan to add more programmes relevant to our context and society each academic year. We have established Learner Support Centres (LSCs) at four different locations in Nepal and intend to establish more LSC in other parts of the country too so that more and more students from outside the valley can benefit. &nbsp;&nbsp;</p>
	<p>
		We are now quite seriously thinking to invest more in &nbsp;technology so that we can take education to the door steps of every Nepali. We are trying to establish a research centre in association with IGNOU. It’s been a long-standing request of ours with IGNOU in order to develop skilled human resource required for the ODL system, development of courses appropriate for the Nepali context and contextualization of some of the existing courses.</p>
	<hr />
	<div>
		 </div>
	<p>
		<strong>‘Ours is&nbsp;<span style="font-size: 12px;">learner-centric learning process’</span></strong></p>
	<p>
		<strong><img alt="Amit Giri, CEO, ICA" height="290" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/business_education_jue2013_ics_ceo_amit.jpg" style="float:left; margin:0 10px 0 0;" width="200" />How does one &nbsp;study without attending classes?</strong></p>
	<p>
		Open and Distance Learning is basically an arrangement which enables a learner to study at the time, place and pace of their choice according to their circumstances and requirements. Hence, attending a class is not an issue. Moreover, the learners after admission receive specially-designed materials called Self Learning Materials (SLM) from the university. The teacher is inbuilt. The learners can comprehend by just going through the SLM.&nbsp;</p>
	<p>
		To supplement the learner’s understanding of the subject matter, we organise Academic Counselling Sessions on Saturdays where learners get their queries answered and doubts cleared. Attending these sessions is, however, not mandatory.&nbsp;</p>
	<p>
		<strong>What is the difference between studying at a regular college and at an open university?</strong></p>
	<p>
		The basic difference is that in a regular college a learner has to attend classes where attendance is mandatory. It is a teacher-centric process for learning. There are restrictions of age, qualifications and physical presence. Costing is rarely done on cost-effective and efficient basis. In an Open University, physical presence is not mandatory. Ours is more learner-centric and provides a more flexible access to education. It is both cost-effective and efficient system for education. Multi-media and multiple methods are widely used.</p>
	<p>
		<strong>Are the degrees of open universities recognized and accepted by the industry?</strong></p>
	<p>
		Yes degrees of IGNOU obtained through ICA are recognized in Nepal and globally. A number of our graduates are absorbed in Nepal and abroad. The latest research shows that in countries like the UK, Australia, and the United States, graduates from Open Universities are in demand in the job market. The degrees are recognized and accepted universally. In Canada the degrees of IGNOU are assessed and recognized by the International Qualifications Assessment Service (IQAS) and it is one of the universities listed by the United Nations.</p>
	<p>
		<strong>What is the evaluation mechanism?</strong></p>
	<p>
		Evaluation of learners is done i) through assignments which carry 30 per cent weight in the final grades of the leaner. ii) On the basis of an examination conducted at the expiry of the minimum duration prescribed for the concerned course called Term End Examination (TEE) which carries 70 per cent weight towards the final grades of the learner. iii) The University may also prescribe courses, specific project works, field work and practical assignments for the learners.&nbsp;</p>
	<p>
		<strong>Where are the Term End Exams held?</strong></p>
	<p>
		They are generally held in the month of June and December every year. At present, there are two exam centres in Nepal i) Exam Centre Code: 9601, Biratnagar ii) Exams Centre Code: 9602, Kendriya Vidyalay, on the premises of the Embassy of India, Kathmandu. Exams at both centres are conducted under the overall supervision of the Embassy of India. One can also take the exams from centres in 43 countries and through the Indian missions in countries with no IGNOU centres.</p>
	<p>
		<strong>Why do you at all have entry restrictions in an ‘Open System’?</strong></p>
	<p>
		The University is concerned about the acceptability of students in society hence they have to ensure equivalence of the degrees/diplomas of IGNOU with that of the conventional universities. So, they have to keep restrictions, e.g. one has to be a 10+2 for joining BA/B.Com/BSc, but that 10+2 need not be with a threshold marks. In other words, restrictions are there but they are minimal</p>
	<p>
		<strong>We have heard that one can graduate from IGNOU even without the 10+2 education. Is it really possible?</strong></p>
	<p>
		&nbsp;Yes, if you are 18 or above, you may join our Bachelor’s Preparatory Programme (BPP). It is a six- month programme where you have to select any two from three preparatory courses in social sciences, commerce and mathematics. If you qualify, you may join Under Graduate (Besides Science Streams), short-term skill development and value-added programmes and any academic programme of IGNOU for which (10+2) is the minimum educational requirement.&nbsp;</p>
	<p>
		<strong>Does it mean that BPP is equivalent to 10+2?</strong></p>
	<p>
		<span style="font-size: 12px;">Not at all. It is only an enabling mechanism (bridge course) for joining graduation and some other programmes of IGNOU by those who for some reason or the other had missed the opportunity of completing school or higher education.</span></p>
</div>
<div>
	<span style="font-size: 12px;"><br />
	</span></div>',
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			'description' => 'Open universities are gaining huge popularity among such professionals. The International Centre for Academic (ICA) has been helping  young professionals to pursue their academic dreams since its inception in 1997.',
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			'id' => '1072',
			'article_category_id' => '80',
			'title' => 'Towards Solutions In Higher Education System',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong><br />
	</strong></p>
<p>
	<strong>By Dr A K Sen Gupta</strong></p>
<p>
	The higher education system and institutions operating therein are passing through a great crisis of identity. The situation is more or less equally turbulent in all parts of the world. The most important stakeholders i.e. the students are often terms as Gen Y whose attitudes and attributes are at complete variance with those of Gen X i.e. the earlier generation. The differing and rising expectations of this new generation from the system in general and society at large call for different types of stimulus so that the response is positive. The Gen Y students are often with unexpected demands and fathomless expectations; they are restless and continuously looking for something different, difficult and complex. Domino effect is quite visible in terms of tangible gains and short-term material benefits.&nbsp;</p>
<p>
	Consequently, there are several problems that are encountered by higher education institutions (HEIs). First, since majority of the teachers are from earlier generation, it is difficult for them to appreciate &amp; empathize with students of Gen Y as regards their attitude to life including their behaviour in class room. Second, the conflicting value systems of both the teachers and taught (two different generations) many a times give rise to situations of misunderstanding, if not confrontation. And finally, Generation Y students do not perceive any value addition in their personal as well as professional lives from Gen X teachers as they feel that the competencies of earlier generation may not be useful in developing the skill sets required for 21st Century. The resultant effects are sometimes disastrous: confrontation, alienation, disinterest in studies, absenteeism, among others. My interaction with students and faculty from a large number of HEIs in different parts of the developing world shows a disturbing trend of increased misunderstanding between the teachers (Gen X) and students (Gen Y).Being the centres of learning, the HEIs must foster a proper and conducive environment of understanding between the teachers &amp; learners where teachers enjoy teaching and students enjoy learning. Only such a climate can breed innovation and lay foundation stone for the economic and social growth of the country.</p>
<p>
	In such an environment, the only solution lies in empowering the students of the HEIs where they are involved in all decision making processes of managing the respective HEI. The existing emotion of alienation arises from the feeling of being supervised &amp; guided by people who, according to them, are not competent being from a generation that does not understand their values &amp; feelings. Therefore, the best way to solve this complex problem is to create an institutional mechanism whereby the students take their own decisions as regards their destiny inside the HEI. These include:</p>
<ol>
	<li>
		<strong>What should be taught?<br />
		</strong></li>
	<li>
		<strong>How it should be taught?<br />
		</strong></li>
	<li>
		<strong>Who should teach?<br />
		</strong></li>
	<li>
		<strong>What types of competencies / skill sets they would like to develop for themselves?<br />
		</strong></li>
	<li>
		<strong>What types of external interventions are needed to develop such competencies?<br />
		</strong></li>
	<li>
		<strong>What type of learning environment they would like to have?<br />
		</strong></li>
	<li>
		<strong>What facilities they would like to have?<br />
		</strong></li>
	<li>
		<strong>How much fees are desirable considering all the facilities?<br />
		</strong></li>
</ol>
<p>
	<span style="font-size: 12px;">This essentially means that the students should decide what is best suited for them. The idea is to augment the student engagementthrough empowerment in the learning &amp; administrative processes so that they becomemore responsible as well as accountable.The axiom is: let students (in close coordination with teachers) run the institution and decide for themselves what is best for them. It is parallel to employees running a company.&nbsp;</span></p>
<p>
	The ideas suggested are indeed revolutionary in nature but worth implementing to bring down the sense of alienation of students from the educational system. To sum up, what is being suggested is not a mere structural change in managing HEIs but a paradigm shift in running educational institutions where the consumers co-create the brand and its value propositions.</p>
<p>
	<strong>Couple of issues become critical in this regard:</strong></p>
<ul>
	<li>
		Students are expected to be mature and responsible to take upon the onus of partly managing and running the institution both at macro and at micro level. Student Councils or Student Unions have been successful instruments / models in this regard in many educational institutions in different countries. But, these Councils in many places are either political or ineffective. What is needed is to make them active and involved in decision making processes. The experimentation of senior responsible positions like Vice Principals (or Deputy Directors) being created from among the students on a rotation basis, may be tried.</li>
	<li>
		Teachers and managements of the HEIs should accept this experimentation on a serious note. As this would make the system open and transparent, it might create volatility at least to begin with.&nbsp;</li>
	<li>
		In such a scenario there should be a person designated as Mentor who is acceptable to all in case of any difference of opinion and who may be able to take care of all possible disputes.</li>
	<li>
		Simultaneously, there should also be the concept ofreverse mentoring whereby the Gen Y can guide / mould the shape of things to come through proper interaction with Gen X teachers / management, the ideas / solutions coming from the former for a change and implemented by the latter.&nbsp;</li>
</ul>
<div>
	<span style="font-size:10px;">Authored by Dr A K Sen Gupta, Founder and Convener, Higher Education Forum (HEF), the largest on-line community of higher educational professionals on a global scale. His past assignments include Director of leading B-Schools in India, World Bank Consultant and Professor at National Institute of Bank Management (NIBM), Pune, India.</span></div>
<div>
	<span style="font-size:10px;"><br />
	</span></div>',
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			'description' => 'Empowering students is the ultimate solution in this age of information boom and increased democratization of education.',
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	(int) 13 => array(
		'Article' => array(
			'id' => '1070',
			'article_category_id' => '84',
			'title' => 'Aptech Group: Focusing On IT Education',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	Starting about 18 years ago in Nepal with Aptech Computer Education (ACE), Aptech Group already has four computer education centres in Kathmandu. It also has Arena Multimedia centre in Kathmandu, which provides education on animation and multimedia. Arena is a division of Aptech. Now the company is preparing its expansion outside Kathmandu through franchisees. &nbsp;&nbsp;</p>
<p>
	“Talks are on the progress with investors in different cities and the details are being worked out,” says Aptech Master Franchisee in Nepal Shobha Kunwar.&nbsp;</p>
<p>
	<img alt="Shobha Kunwar, Aptech Master Franchisee in Nepal" height="289" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/information_technology_june2013_aptech_group_master_franchisee_shobha.jpg" style="float:right; margin:0 0 0 10px;" width="209" />Established in India in 1986, Aptech has by now presence in 40 countries across the world including Nepal and has a total of 1,308 training centres.&nbsp;</p>
<p>
	The group opened its first ACE in Nepal in 1995 and launched Arena Multimedia in 2001. According to Kunwar, Aptech has already trained over 50,000 people in Nepal and employs 120 people in the country.</p>
<p>
	<strong>Aptech Group in Nepal</strong></p>
<ul>
	<li>
		<strong>New Baneshwar – ACE</strong></li>
	<li>
		<strong>Kantipath – ACE and ARENA MULTIMEDIA</strong></li>
	<li>
		<strong>Kumaripati – ACE</strong></li>
	<li>
		<strong>Pokhara – ACE</strong></li>
</ul>
<p>
	<strong>Aptech Group</strong></p>
<p>
	The official website of Aptech Group claims, it has provided IT training to more than 6.5 million students in over 40 countries. It is also claimed to be the first IT training organisation in Asia to get ISO 9001 certification. The group has Headquarter in Mumbai, India.</p>
<p>
	Range of products by Aptech Group&nbsp;</p>
<ul>
	<li>
		<strong>1996 - &nbsp;Arena Multimedia, offers animation and multimedia</strong></li>
	<li>
		<strong>2006 – Acquired Avalon to gain an entry into the aviation industry</strong></li>
	<li>
		<strong>2007 – Entered Hardware and networking through N-power now rebranded as Aptech hardware and networking Academy</strong></li>
	<li>
		<strong>2009 – Started English language training</strong></li>
	<li>
		<strong>2010 – Acquired MAAC leading to become the leader in the Indian animation and multimedia training</strong></li>
</ul>
<p>
	<strong>Products&nbsp;</strong></p>
<p>
	Courses offered by ACE are related to all areas of software development. Aptech Certified Computer Professional (ACCP) is billed as flagship career program of the company. “It is a comprehensive IT course, which equips the student with advanced programming knowledge to build enterprise solutions with extensive hands on training and project work, giving students real world experience,” explains Kunwar.&nbsp;</p>
<p>
	<strong>ACCP Features:</strong></p>
<ul>
	<li>
		<strong>Technology platforms from Sun Java and Microsoft<br />
		</strong></li>
	<li>
		<strong>Emphasis on coding and source code documentation standards<br />
		</strong></li>
	<li>
		<strong>Upgraded Java and .NET technologies<br />
		</strong></li>
	<li>
		<strong>Projects/ e-projects<br />
		</strong></li>
	<li>
		<strong>Improved ‘Blended Learning’ delivery methodology<br />
		</strong></li>
	<li>
		<strong>Intensive practice and Assessment Laboratory workshops<br />
		</strong></li>
	<li>
		<strong>Open source Technology<br />
		</strong></li>
</ul>
<p>
	<span style="font-size: 12px;">Arena Multimedia, a sister body of Aptech Group offers animation and multimedia course ranging from three months to two years career courses and has presence in 20 countries. It has tie ups with Macromedia and Adobe.</span></p>
<p>
	Arena has been shaping the multimedia industry equipping students with the finest skills and state-of-art technologies in multimedia, says Kunwar. According to her, Arena students are making exciting career in the fields of advertising, gaming, entertainment, 2D and 3D animation, print publishing, web designing and development, among others.&nbsp;</p>
<p>
	“Aptech’s semester end online examination system is designed to offer comprehensive, secure and consistent online testing,” says Kunwar. “Evaluation happens in real time and answers are automatically encrypted for QA control.”&nbsp;</p>
<p>
	According to her, once a student completes a career course with Aptech their credit can be transferred to an international university with which the company has tie up. This transfer is available in Bachelor’s final year. Among such universities are Royal Melbourne Institute of Technology, University of Portsmouth, Middlesex University and Mahatma Gandhi University. &nbsp;</p>
<p>
	<strong>Future Strategy</strong></p>
<p>
	As the Nepali job market is becoming more and more competitive, the demand for IT education is growing as a result. This provides a good opportunity to the IT education provides to expand their business in Nepal.&nbsp;</p>
<p>
	Kunwar says, “Nepal has huge potentiality for IT education and the market has accepted the importance of IT in every field. Hence, we are planning to open education centres in all the major cities of the country with variety of courses.”</p>
<p>
	According to her, one component of the expansion drive is to launch Cambridge English Language Teaching (ELT) next year in Nepal. &nbsp;ELT will offer wide range of English Language course including spoken English, accent training, foundation courses, IELTS and TOEFL preparation.&nbsp;</p>
<p>
	<strong>CSR</strong></p>
<p>
	As part of Corporate Social Responsibility, Aptech is planning to provide computer education for rural kids. “Besides this, the company has plans for orphanages as well. Under this, Aptech will be donating books, computers and other materials in near future,” said Kunwar.&nbsp;</p>
<hr />
<p>
	<strong><span style="color:#f00;">SWOT</span> Analysis</strong></p>
<p>
	<b>Strengths&nbsp;</b></p>
<ul>
	<li>
		<b>Experienced of nearly three decades</b></li>
	<li>
		<b>Link up with world renowned institutions</b></li>
	<li>
		<b>Presence in 40 countries</b></li>
</ul>
<p>
	<b>Opportunities</b></p>
<ul>
	<li>
		<b>Growing market</b></li>
	<li>
		<b>Rising pool of educated people who are seeking IT education</b></li>
	<li>
		<b>Awareness of IT education</b></li>
</ul>
<p>
	<b>Threats</b></p>
<ul>
	<li>
		<b>Political uncertainty</b></li>
	<li>
		<b>Power cuts</b></li>
</ul>
<div>
	<b><br />
	</b></div>',
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			'id' => '1069',
			'article_category_id' => '78',
			'title' => 'What Happens When We Treat The Country First And Self Interest Later? A True Revolution',
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			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img alt="Buddha's Delight" height="111" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/budda's_delight_imageJune2013.jpg" style="float:left; margin:0 10px 0 0;" width="100" />Today people across globe are closely watching a country. The notion about that country revolves around a tag of Corruption, Nepotism and Lawlessness. It faced decades of political turmoil and sometimes complete paralysis of normal life. Being a young country, with 50% population below the age of 30 and bordering a large economy, there were significant migrations for greener pastures. Though the population grew moderately and the middle class was emerging as power house, country forecast was bleak due to radical syndication and rampant corruption. It is Mexico I am talking about.&nbsp;</p>
<p>
	All the negative images of Mexico were true till some years back. It was facing problems from poverty, drug cartels, political instability, syndication, strikes – you name it. Then a revolution happened with a paradigm shift on people’s mindset. It was a silent revolution without any tag of any of the “Isms”. One day Mexicans decided that they have had enough. They realized that either they have to move on or they will be moved aside and their future cannot be defined by handicaps like Corruption and Political instability. They woke up to change the Image of Mexico.&nbsp;</p>
<p>
	And look at the result. Financial Times reported on 19th September 2012 that Mexican exports surpassed the combined export of the rest of the Latin America. Chrysler uses their Mexico base to supply to the Chinese market. Chinese market – you have heard it right!!!</p>
<p>
	How this has happened? It is the power of collective wisdom. When society decides to change together – the result can be awesome. Suddenly people do not want to be held hostage by radicalism. It’s a Mexican Wave – a Tsunami which gripped the country. Political parties were forced to act to avoid extinction. Waking up from the political coma, Mexico’s three major political parties decided to work together and signed a “Pact for Mexico”. &nbsp;</p>
<p>
	Mexico still has huge governance problems to fix; nobody claims otherwise. Even then, the change was profound and clear. As American Journalist Dorothy Day said - “The greatest challenge of the day is: how to bring about a revolution of the heart, a revolution which has to start with each one of us”. In that way, Mexico went in the right path. Acknowledging a problem is half the cure. &nbsp;</p>
<p>
	In recent times Mexico signed 44 free trade agreements; more than any country in the world. It is more than double than China and four times than Brazil at the same period; shocking but true. With the greatly increasing number of graduating engineers and skilled laborers in recent times, slowly they are gaining manufacturing market share back from Asia and attracting increasing global investment. &nbsp;By the way, my sources say that in SAARC region, number of Engineering and Medical students in USA from Nepal is more than that of Pakistan and Bangladesh put together despite of Nepal’s population being only a fraction of them. So patient is alive and kicking; Indeed. &nbsp;</p>
<p>
	But – we are discussing Mexico. What happened there? One trend became clear. Now, an average Mexican citizen can judge performances on real time. They can inform the authority about violations or infrastructure failure and government mends things. How quickly things are being fixed are also being tracked online. This gives them power. This power sets pressure points to force changes. Thus, Mexico liberalized commerce, fixed accountability and democratized Media. Basically, they democratized the democracy itself. Democracy in Mexico is not restricted to only a handful of people. Authorities and Government became accountable and answerable to all.&nbsp;</p>
<p>
	As per World Bank, in 2 years by end of 2011, Per Capita GDP of Mexico increased from US$7852 to US$10047 while India moved from US$1127 to US$1489 and China from US$3749 to US$5445. It means a Country with 116Mill population &amp; 1.1% growth rate increased their per capita exposure to goods by 28% in 2 years. As per latest figure - Mexican inflation is around 4% and unemployment rate 5%. 1.758 Trillion US$ Mexican GDP (based on PPP) gets a whopping 23% contribution from Industry!! Do we need more argument in favor of the power of people and the might of collective Wisdom?</p>
<p>
	Is this a revolution? Revolution came from Latin word “Revolutio”, which means “a turnaround”. Revolution is a fundamental change in structures that takes place in a relatively short period of time. It does not mean shutting down things or politicizing events or organizing strikes. Revolution means positive changes for the betterment of all member of the society. Revolution occurs when fellow citizens become accountable and behave responsibly. It is a turnaround which has to start with each Individual through small action. Even a handful of people can start this momentous change. As Margaret Mead said - “Never believe that a few caring people can’t change the world. For, indeed, that’s all who&nbsp;<span style="font-size: 12px;">ever have.”</span></p>',
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			'description' => 'The greatest challenge of the day is how to bring about a revolution
of the heart, a revolution which has to start with each one of us.',
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		'Article' => array(
			'id' => '1085',
			'article_category_id' => '60',
			'title' => 'Govt To Sign MoU For Construction Of Airports',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	Nepal is geared up to sign a Memorandum of Understanding (MoU) with concerned companies for the construction of four airports. According to Minister of Ministry of Culture, Tourism and Civil Aviation Ram Kumar Shrestha, the MoU will be signed within mid-December this year. Shrestha said so in a programme organized by Media International on May 18th.&nbsp;</p>
<p>
	He informed that MoU will facilitate the construction of second international airport in Nijgadh, Pokhara Regional International Airport, Gautam Buddha Regional International Airport in Bhairahawa and extensive improvement of Tribhuvan International Airport.&nbsp;</p>
<p>
	Shrestha also said that he will be playing an instrumental role in solving the problems of Nepal Tourism Board, including the appointment of CEO in the Board.&nbsp;</p>',
			'published' => true,
			'created' => '2013-06-08',
			'modified' => '0000-00-00',
			'keywords' => 'Govt To Sign MoU For Construction Of Airports, Civil Aviation, Airport, Aeroplane, Airline, New Business Age, June 2013, Travel, Tourism',
			'description' => 'Nepal is geared up to sign a Memorandum of Understanding (MoU) with concerned companies for the construction of four airports. According to Minister of Ministry of Culture, Tourism and Civil Aviation Ram Kumar Shrestha, the MoU will be signed within mid-December this year.',
			'sortorder' => '954',
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		'Article' => array(
			'id' => '1084',
			'article_category_id' => '60',
			'title' => 'ADB To Spend Rs 7 Billion For TIA Upgradation',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Asian Development Bank (ADB) will be spending Rs 7 billion for the improvement of Tribhuvan International Airport (TIA). The major portion of the amount will be spent in the development of infrastructures. According to Punya Raj Shakya, Project Director of Tribhuvan International Airport Improvement Project, Rs 5.25 billion is allocated for the physical infrastructure development. “The work is already in the process with a plan to complete it within three years,” said Shakya. Under the programme, airport’s runway will be widened by 300 meters, the regular work procedure of Civil Aviation Authority of Nepal will be divided and passenger’s waiting area and parking area will be increased by double. The amount will also be spent in installing Visual Approach Guidance System in Lukla airport to facilitate landing. The system will be installed in Tribhuvan International Airport and Lukla airport by December.</p>
<p>
	TIA currently has only two wide bodies and seven narrow bodies parking that can accommodate only nine aircrafts at once. This has been causing continuous delay in international flights and expansion of the parking area was needed. Under the prograame, 55 CCTVs, three X-ray machines will also be added and the lighting system will also be improved. The construction of internal terminal building is also in the process which will cost around 100 million rupees. &nbsp;Out of ADB’s total assistance, USD0 70 million is provided as loan and USD 10 million as grant.&nbsp;</p>
<p>
	<strong><img alt="Tribhuvan International Airport" height="163" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/civil_aviation_june2013_TIA_adb(1).jpg" style="margin: 0 10px 0 0;" width="595" /><br />
	</strong></p>
<p>
	<strong>A Glance at TIA Progress</strong></p>
<div>
	<p>
		<strong>1949</strong> – Nepal started its first aircraft with the operation of single- engine Bonanza aircraft.</p>
	<p>
		<strong>1956</strong>- King Mahendra renamed Gauchar Airport as Tribhuvan Airport.</p>
	<p>
		<strong>1964</strong>- Tribhuvan Airport again renamed as Tribhuvan International Airport.</p>
	<p>
		<strong>1967</strong>- The runway was extended from 3,750 feet long to 6,600 feet and the first jet aircraft Boeing 707 flew</p>
	<p>
		<strong>1968</strong>- With Thai Air International jet, the regular flight started fleeing</p>
	<p>
		<strong>1972</strong>- ATC services taken over by Nepalese personnel from Indian technicians</p>
	<p>
		<strong>1975</strong>- Runway extended to 10,000 feet long</p>
	<p>
		<strong>1989</strong>- Boeing 747 started and new ITB development process completed</p>
	<p>
		<strong>1995</strong>- Domestic terminal building and apron area expansion</p>
	<p>
		<strong>2002</strong>- Establishment of new Cargo building and expansion of ITB&nbsp;</p>
	<p>
		<strong>2009</strong>- International parking and domestic taxi way extension&nbsp;</p>
	<p>
		<strong>2010</strong>- TIA golden gate was changed to its new look. &nbsp; &nbsp;</p>
	<p>
		 </p>
</div>',
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			'keywords' => 'ADB to spend Rs 7 billion for TIA Upgradation , Civil Aviation, Airlines, TIA, Tribhuvan International Airport, kathmandu, New Business Age, June 2013',
			'description' => 'Asian Development Bank (ADB) will be spending Rs 7 billion for the improvement of Tribhuvan International Airport (TIA). The major portion of the amount will be spent in the development of infrastructures.',
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			'id' => '1083',
			'article_category_id' => '60',
			'title' => 'Oman Air Winner Of Middle East’s Leading Airline Economy Class',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Oman Air, the national carrier of Oman has been announced as the winner of the ’Middle East’s Leading Airline Economy Class’ category at the World Travel Awards 2013.&nbsp;</p>
<p>
	The awards that recognise the performance the airline has demonstrated over the last 12 months are voted for by travel and tourism professionals worldwide. Oman Air’s Chief Executive Officer Wayne Pearce attended the ceremony held on 5th May at Le Royal Meridien Beach Resort and Spa in Dubai.</p>
<p>
	“Oman Air is honoured to have won the award in this highly competitive category, and against such worthy competitors on the eve of the launch of ATM 2013,” said Pearce.&nbsp;</p>
<p>
	Oman Air has won many international industry award in recognition of its recent developments, including the introduction of new aircraft, the inauguration of a range of new destinations, the unveiling of spacious and luxurious aircraft interiors – including its A330 business class seat, named as the World’s Best at the Skytrax 2012 World Airline Awards - and the launch of state-of-the-art in-flight entertainment systems.&nbsp;</p>
<div>
	 </div>',
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			'created' => '2013-06-08',
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			'keywords' => 'Oman Air Winner of Middle East’s Leading Airline Economy Class, Civil Aviation, New Business Age, June 2013, Aeroplanes, Flights, Middle East, Airlines',
			'description' => 'Oman Air, the national carrier of Oman has been announced as the winner of the ’Middle East’s Leading Airline Economy Class’ category at the World Travel Awards 2013.',
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		'Article' => array(
			'id' => '1082',
			'article_category_id' => '31',
			'title' => '‘We Believe In Providing Solution Which Is Safe, Comfortable And Sustainable’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Sanjeev Seth is the General Manager and Sales Leader for Trane Commercial Businesses in SAARC Markets that form part of the Climate Solutions sector at Ingersoll Rand. Trane is Ingersoll Rand’s strategic brand and world leader in Heating, Ventilating, Air-Conditioning and Refrigeration (HVACR) industries that serve commercial, institutional, hospitality, industrial and pharma market. Seth is responsible for driving innovation and growth of Trane business by understanding customers’ needs and developing solutions to meet customer expectations in SAARC countries. Siromani Dhungana of New Business Age talked with him during his recent visit to Nepal.</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>What is the purpose of your visit?</strong></p>
<p>
	Trane is one of the leading brand in heating ventilation and air conditioning and we are now trying to increase our presence in Nepal market and we appointed MAW Engineering Pvt. Ltd as business partner for the entire Nepal. We see Nepal as a very strategic market, it’s definitely grow substantial for near future. Trane is a brand which caters to HVAC system, service and solutions for both commercial and industrial segment. We see a lot of opportunity for providing air conditioning solution in this market. So we are here to meet customer and establish relationship and engagement with the customer.</p>
<p>
	<strong>What sort of strategies has Trane adopted to target the Nepali market?</strong></p>
<p>
	As we know, energy is becoming more and more expensive and it is important to have solutions which are environmentally efficient and sustainable. We believe in providing solution which are safe, comfortable and sustainable. The products which we are launching here are going to be very energy efficient and use gases which are environmental friendly with latest technology.</p>
<p>
	<strong>With a growing interest of customers in appliances such as AC and refrigeration, there must also be competition in the market. How has Trane made sure that its market share does not get reduced by cheaper competitors?</strong></p>
<p>
	There are a lot of choices available to customers and Trane believes in partnering with customers to find the right choice. We have wide range of products available from small conditioners to huge centrifugal chillers. The product portfolio Trane manufactures, is able to meet diverse needs of the customers. They are highly energy efficient and reliable. And there is a very strong service network of Trane service technicians. We partner with the customer to provide the right kind of solutions.</p>
<p>
	<strong>With new ideas coming in each day for every sector of technology, how do you brainstorm ideas for a new and refined product?</strong></p>
<p>
	It is the regular and continuous process. We continue to innovate new products and technology. In India we have our research and development centres for this.&nbsp;</p>
<p>
	<strong>How do you see market of air conditioner in South Asia and especially in Nepal?</strong></p>
<p>
	The economy in Nepal is definitely grown and there is a need for providing the right kind of solution for customers in Nepal. The customers in Nepal will require more solution from Trane. Trane is very bullish about the Nepal market. Our partner here, MAW, is in the right position to offer the right products and solution to market.</p>
<p>
	<strong>Would you please tell us about the major unique features of the Trane brand?</strong></p>
<p>
	This year Trane has completed its hundred years. Now we are committed as well as geared up for the next century. Our products and services are unique in the sense that they are able to provide energy efficient solutions, are sustainable and some of the major installation in the world use Trane products.&nbsp;</p>
<p>
	We also have building automation systems which can integrate the entire equipment of the building. Overall we have wide portfolio which meets the diverse needs of customers.</p>
<p>
	<strong>What are your major branding strategies?</strong></p>
<p>
	Today the customers are looking for not just the products. It should be backed by proper services as well. The product itself should be reliable and of good quality. Trane is very well established in commercial segments of the markets and is recognized as a very strong and reliable brand. It continue to focus on the same values of providing reliable and high quality products and it will be backed by strong after sale services with our partner here, MAW, and we also hope that our new products and innovations will address the need of the customers.</p>
<p>
	<strong>What is the current market share of your products in Nepali market?</strong></p>
<p>
	We have been working with a lot of corporate house here since a long time and we see here a lot of opportunity and we are bullish about the future.</p>
<p>
	<strong>Where do you want to see Trane brands in Nepali market five years from now?</strong></p>
<p>
	We want to see Trane being recognized as a brand which can provide energy efficient and reliable and high quality products and entire systems and solutions of the costumers’ needs. And it should be a recognized as a brand which can actually help the customers on saving energy also. And Nepal is already struggling due to power outage. So any product or system which can save energy will help address the need of customers here. And our focus is energy efficient products at&nbsp;<span style="font-size: 12px;">reasonable price.</span></p>
<p>
	<span style="font-size: 12px;"><br />
	</span></p>',
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	(int) 4 => array(
		'Article' => array(
			'id' => '1081',
			'article_category_id' => '31',
			'title' => '‘We Are Looking For A Long Term Relationship With The Nepali Market’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Ramesh Palagiri, managing director and CEO of Wirtgen India, was recently in Nepal to officially launch Hamm soil compactors in the Nepali market. Hamm products are manufactured in India, China and Germany using German technology by Wirtgen Group. Siromani Dhungana of New Business Age talked with him on the business prospects of Hamm soil compactors in Nepal.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>What are the products you are currently supplying in Nepal?</strong></p>
<p>
	We are supplying Hamm soil compactors. By the end of the year, we are coming up with a tandem roller. Because most of the roads are on hilly terrain, there is lot of hope for road recycling in Nepal and we have a very good solution for that: technology called cold recycling (very popular worldwide.) By this technology, roads can be rehabilitated.</p>
<p>
	<strong>What prospects do you see for your business in Nepal?</strong></p>
<p>
	In the last few years, the development activities in Nepal have gone down. So there are lots of possibilities for infrastructure to come up. We expect the market to grow in coming years. As of now, the market size is roughly 35-40 machines per year. We are looking for a long term relationship with the Nepali market.&nbsp;</p>
<p>
	<strong>Why to choose your products?</strong></p>
<p>
	We have 100 years of experience. We are leaders in road technologies, both for constructing new roads and for rehabilitating the existing ones. We have premium products in economic range. The consumer gets best value for money with our products. We have patented a three point articulation engine with clear and simple information displayed. So even a operator without much experience can handle it. It’s easy in maintenance and high in productivity.</p>
<p>
	<strong>How do you see the South Asian market?</strong></p>
<p>
	The South Asian market is vital for us. There is almost the same level of opportunity for us with similar competition. The market is growing and that is important too. Our target is to become market leaders.</p>
<p>
	<strong>What is the level of competition you face in Nepal?</strong></p>
<p>
	The level of competition is the same we face in India. There is a throat-cutting level of competition. We are selling premium products. Our market share is 35 percent now, our target is 40-45 percent by the end of next year. We are also focusing in good after sale services and spare parts to get close to the customer.</p>',
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			'created' => '2013-06-08',
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			'description' => 'Ramesh Palagiri, managing director and CEO of Wirtgen India, was recently in Nepal to officially launch Hamm soil compactors in the Nepali market. Hamm products are manufactured in India, China and Germany using German technology by Wirtgen Group.',
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	(int) 5 => array(
		'Article' => array(
			'id' => '1080',
			'article_category_id' => '31',
			'title' => '‘We Are Expanding Business In Developing Countries’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Hideto Kawamura, Department Head, Overseas Sales Division of Yamaha Motor Pvt Ltd, India recently visited Nepal to officially launch Yamaha Ray, a new scooter from Yamaha. &nbsp;In his 10 years of career in Yamaha Motors, Kawamura has worked in various departments ranging from services to sales and marketing. He joined the company in 2002 as the In-charge of CKD export operation and marketing support for Indonesian Market products. He moved to India in 2012 and has been overseeing export from India. In an interview with New Business Age, Kawamura shared the expansion plan of his company in Nepal.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>Would you please describe the Ray Scooter that you just launched?&nbsp;</strong></p>
<p>
	The Ray Scooter is specially made for women. The height of the seat is lower than the competitors. Overall, it is very comfortable for female riders. &nbsp;On the other hand, the mileage of the Ray is the best among the scooters segment available in Nepal. And, it has better pick up. The scooter is good enough to ride for two people and it goes smoothly while climbing the slopes.</p>
<p>
	<strong>&nbsp;How do you find the demand of your product in Nepal?&nbsp;</strong></p>
<p>
	We see a great market for scooters in Nepal. Though our product is new in Nepali market compared to other products, we are confident that our product will be popular among the riders. The scooter market in Nepal is basically owned by other models like Dio from Honda. But our product is competitive enough to take on them. Ray scooter would win customer’s trust in every aspect; style, pick up, mileage and overall. I believe we will own around 20 per cent market share in Nepal in 2013/2014. We will try our best to achieve that.&nbsp;</p>
<p>
	<strong>What are the other products that you are planning to launch in Nepal?&nbsp;</strong></p>
<p>
	We are considering launching variation models of Ray scooter in Nepal in near future. But I cannot say more about it right now.</p>
<p>
	<strong>How are you expanding your business internationally?&nbsp;</strong></p>
<p>
	Today, Yamaha sells around 7 million units of two-wheelers a year all over the world including in Japan, USA and European countries. We are also expanding our business in developing countries like Nepal. &nbsp;Now, we have the largest market shares in South East Asia mainly in Indonesia, Thailand and Vietnam. And we are expanding our business in African countries.&nbsp;</p>
<p>
	<strong>How do you see the prospects of your business in Nepal?&nbsp;</strong></p>
<p>
	Until 2012 December, we sold around 12,000 motorcycles in Nepal. It will expand much more and our sales could see up to 40 per cent growth compared to previous year. We have a plan to launch another variation of scooter that will also contribute to the growth.&nbsp;</p>
<div>
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			'id' => '1079',
			'article_category_id' => '31',
			'title' => '‘We Are Confident About The Performance Of Our Products’',
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			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	Hiroaki Ashizawa, Director of Mitsubishi Electric India Pvt. Ltd is also heading Living Environment Air condition division in India. Founded in 1921, Mitsubishi Electric is a leading company in manufacturing and sales of electrical and electronic products. Hiroaki has handled many international markets including USA, Europe and Asia Market and has 35 years of experience in HVAC. In an interview with New Business Age, Hiraoki shared about his business in Nepali market.&nbsp;</p>
<p>
	<strong>Excerpts:</strong></p>
<p>
	<strong>Could you please highlight the reasons of your visit?</strong></p>
<p>
	I came here for a launching ceremony of our Air conditioner products in Kathmandu. Since I am supposed to assist and support the business in Nepal, I also wanted to visit Airtech, our business partner here in Nepal.&nbsp;</p>
<p>
	<strong>What are the products that you just launched?</strong></p>
<p>
	Recently, we launched two air conditioning series namely Mr. Slim Series and CITY MULTI VRF series in Nepali market. &nbsp;Mr. Slim is a series of room air conditioners for private houses and small offices while City Multi VRF Series is for commercial purpose suitable to corporate offices, banks, hospitals, hotels, shopping complexes, villas, apartments, etc. Both these series are widely accepted in global market. With these full ranges of world class products we ensure that Nepalese customers would get the best AC products.</p>
<p>
	<strong>Can you tell us the major unique features of the Mitsubishi Electric brand?</strong></p>
<p>
	We focus on Mitsubishi Electric Quality promising the best experience in our products, services, partnership and people. Apart from premium quality, energy efficiency, usage of environment friendly green refrigerant R-410A for our product range and our service quality are key features that ensure standards matching to the lifestyle with lesser environmental impact.</p>
<p>
	<strong>How are you expanding your products in the international market?</strong></p>
<p>
	We are one of the leading air conditioner companies in global market including South East Asia. We are now growing rapidly mainly in the countries like India, Nepal, Pakistan and Bangladesh. We are already market leaders in our inverter segment in USA, UK, Spain, etc. We also enjoy leadership status in many Asian countries including Thailand and Myanmar.</p>
<p>
	<strong>How do you see the prospects of your business in Nepal?</strong></p>
<p>
	We launched our products in Nepal nearly a year back. With these best products, we are aiming to be the market leader by the year 2015. Seeing the price competition, I believe Nepal is one of the hardest markets in South Asia. It seems very tough but still we are ready to fight and grab the market. We are confident about the performance of our products and I am sure the valued customers in Nepal would pay some premium for our quality products.</p>
<p>
	<strong>How can Nepal get benefit from these products?</strong></p>
<p>
	We sell DC inverter type Air Conditioners with after sales services in Nepali market. As DC inverter type Air Conditioner is energy saving product, it could be beneficial for reduction of energy consumption ensuring the lower operating cost.&nbsp;</p>
<p>
	<strong>What is your further plan regarding your business in Nepal?</strong></p>
<p>
	We are planning to launch the Hot Water Generating system- a highly efficient and eco friendly product especially suited for hotel business in Nepal. &nbsp;</p>',
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			'description' => 'Hiroaki Ashizawa, Director of Mitsubishi Electric India Pvt. Ltd is also heading Living Environment Air condition division in India. Founded in 1921, Mitsubishi Electric is a leading company in manufacturing and sales of electrical and electronic products.',
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		'Article' => array(
			'id' => '1078',
			'article_category_id' => '31',
			'title' => '‘We Hope The Market For Our Business Grows Fast In Nepal’',
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	 </p>
<p>
	Cyrus Khambata is the Chief Executive Officer at CDSL Ventures Ltd (CVL). &nbsp;He joined Central Depository Services Limited (CDSL) in 1999, the date of CDSL’s operation and currently offering his services as an Executive Vice President. CDSL is a leading securities depository in India. &nbsp;Previously, he served Bank of India as a Chief Manager for 20 years. Sushila Budhathoki of New Business Age talked with Khambata during his recent Nepal visit.&nbsp;</p>
<p>
	<strong>Excerpts:&nbsp;</strong></p>
<p>
	<strong>What brings you to Nepal this time?</strong></p>
<p>
	I am here for the inauguration of clearing and settlement system started by Central Depository &amp; Settlement Corporation (CDSC). I have been putting my effort to start the system for three years. I am here for technical assistance.&nbsp;</p>
<p>
	<strong>So, you had a meeting with brokers also?</strong></p>
<p>
	Yes, they had certain questions like how DEMAT operates, how the risks can be minimised etc. And we had to explain them.</p>
<p>
	<strong>Now the CDSC has come into full operation. How will it support the capital market of Nepal?&nbsp;</strong></p>
<p>
	In the physical settlement process, shares traded in the stock exchange have to be transferred manually. That takes a long time to change the ownership. With Dematerialisation (DEMAT), the shares get transferred to the respective stakeholders’ account immediately on the trading day so they can use it during emergency also. &nbsp;</p>
<p>
	<strong style="font-size: 12px;">How do you see the prospects of your business in Nepal?&nbsp;</strong></p>
<p>
	We hope the market for our business grows fast in Nepal. We will target big companies and have started the DEMAT services offered to the shareholders. So, that it would grow rapidly. People who are trading shares will prefer DEMAT because it is less time consuming. But the people who are not trading will take time to familiarize with DEMAT.</p>
<p>
	<strong style="font-size: 12px;">What are other infrastructures necessary for Nepali capital market?&nbsp;</strong></p>
<p>
	In the capital market, there are three large infrastructure providers. One is regulator who does a lot of monitoring, second is the exchange which offers trading facilities and the third one is depository which sets up the depository participants to cover the entire population. &nbsp;In India, there are 18, 000 depository centers covering 25,000 pin codes out of 27,000 pin codes in the country. State Bank of India provides DEMAT facilities from its 3000 branches among 10 -12 thousand branches.</p>
<p>
	So, like SBI, Bank of Kathmandu also can be the center for providing DEMAT facilities. It can offer this service from its 500 branches which will cover the entire country.</p>
<p>
	<strong style="font-size: 12px;">What are your suggestions to CDSC for providing services other than normal settlements?</strong></p>
<p>
	It can provide numerous services if permitted. One is e-voting service. It would help the shareholders to participate in the operation of the company that they own. For example, they can even electronically vote for the AGM even if they are not physically present to attend the programme.&nbsp;</p>
<p>
	Similarly, they can provide KYC (Know Your Client) services. To open a DEMAT account, you have to comply to the KYC rules. It is required by banks, insurance companies and telecom operators to name a few. All the documents need not be collected from the client in each and every step every time he/she transacts somewhere. So, CDSC can become a bank for KYC document and the client can just file his details once and for all for any organisation.&nbsp;</p>',
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			'description' => 'Cyrus Khambata is the Chief Executive Officer at CDSL Ventures Ltd (CVL).  He joined Central Depository Services Limited (CDSL) in 1999, the date of CDSL’s operation and currently offering his services as an Executive Vice President.',
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		'Article' => array(
			'id' => '1077',
			'article_category_id' => '40',
			'title' => 'Nepali Banking In Transition Through Mergers And IPOs',
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			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<strong>By Siromani Dhungana (with inputs from Yagya Banjade and Rashesh Vaidya)</strong></p>
<p>
	<em>As per the NRB’s latest data, the country has 31 commercial banks, 87 development banks, 80 financial companies and 21 micro-finance companies. The number shows that there is tough competition among banks and financial institutions (BFIs) forcing them to face multiple challenges. The major one is surely the capital base. The introduction of merger policy has created opportunities for banks to increase their capital base. At the same time, the BFIs are also going ahead with Initial Public Offerings (IPOs) to increase their capital base. In this issue, New Business Age tries to present an overview of how the Nepali banking sector is going about with mergers and IPOs.</em></p>
<p>
	The trend of announcing merger plans by the banks and financial institutions (BFIs) has gathered pace in recent months. According to Nepal Rastra Bank, a total of 28 banks and financial institutions (BFIs) have already merged with each other reducing the total number of BFIs by 15. Similarly, some 24 BFIs have already received Letter of Intent (LoI) to be merged with one other, and upon completion of this process, the total number of BFIs will reduce by another 14. And, other 12 BFIs have applied for the LoI. Once these too complete the process, the number of BFIs will be reduced by additional 5.</p>
<p>
	This shows that in spite of several weaknesses to implement monetary policy, Nepal Rastra Bank (NRB) has become quite successful in implementing its merger policy. Earlier, the central bank had announced packages of rebates, discounts, waivers and facilities to the BFIs opting for mergers. But now, the bankers themselves believe that merger has become compulsory for many banks which are suffering from the problem of low capital base and limited geographical coverage.</p>
<p>
	Similarly, a wave of Initial Public Offerings (IPOs) has started among the new BFIs. In the last Nepali calendar year that ended on mid-April, 20 BFIs issued IPOs, issuing shares worth Rs 5.6 billion. More offering such IPOs are in the pipeline. Though BFIs can increase their capital base also through Further Public Offering (FPO) of their shares, very few of them have opted for this route.</p>
<p>
	<strong>Need for Merger</strong></p>
<p>
	Apparently, the universal objectives of the merger or acquisition are to consolidate the capital, reduce operational expenses, expand business and maximise profits.&nbsp;</p>
<p>
	However, in our case, mergers of three distinct natures now seem to be in the offing.&nbsp;</p>
<p>
	Firstly, relatively large institutions are planning to create a larger capital base so they could compete with global players who could potentially begin their operations here owing to WTO arrangements.&nbsp;</p>
<p>
	The second type of merger would be compulsive of sorts as the NRB has asked the BFIs belonging to the same business house to integrate without any “ifs and buts’’.&nbsp;</p>
<p>
	The third types are those who fear the complete meltdown if they fail to merge soon to consolidate resources, introduce corporate best practices and reduce expenses.&nbsp;</p>
<p>
	Consolidation is becoming increasingly necessary as banks are struggling to give returns to their shareholders. Almost all BFIs are eyeing mergers, and the number of BFIs will come down notably in the next three years.</p>
<p>
	However, bankers say more incentives are needed to speed up mergers, particularly between commercial banks. For example, they have been demanding decrease in corporate income tax to 20 percent from the current 30 percent for a merged BFI.</p>
<p>
	As there is no environment for increasing capital by issuing rights shares and bonus shares as that will not be enough to raise capital to the required level, finance companies have no other&nbsp;option than to go for a merger. Many finance companies have thought that’s it’s better to opt for a merger than to face action from the central bank for failing to increase the capital to the required level next year.</p>
<p>
	Also the shaken public confidence on towards banking institutions due to recent problems in the banking sector and their inability to give proper returns to their shareholders, has forced the BFIs to increasingly lean towards consolidation.&nbsp;</p>
<p>
	Consolidation is necessary also to increase the paid-up capital since the possibility to increase of paid up capital by issuing rights shares is very slim. Moreover, the size of loans being demanded by single borrowers has been increasing in recent years. So, BFIs having low paid-up capital cannot fulfill such demand.&nbsp;</p>
<p>
	Similarly, merger becomes an urgent need also because due to the terms agreed by Nepal while gaining membership of World Trade Organisation (WTO), financail services sector is open for foreign investors beginning 2010. So, foreign banks can open their branch in nepal. If big foreign banks open their branches in Nepal, the Nepali banks with small capital base may not be competitive.</p>
<p>
	<strong style="font-size: 12px;"><span style="font-size: 12px;"><br />
	</span></strong></p>
<p>
	<strong style="font-size: 12px;"><span style="font-size: 12px;">The Journey of BFIs Mergers in Nepal So Far</span></strong></p>
<p>
	The journey of merger of Nepali banks began nine years back. In 2004, Laxmi Bank merged into it Himalayan Saving and Finance Company (HISEF), and it was done according to the broad provisions of Company Act and Bank and Financial Institution Act (BAFIA). The then Narayani Finance and National Finance had merged to become Narayani National Finance following the same Acts. Similarly, Himchuli Development Bank and Birgunj Finance merged and became H &amp; B Development Bank aalso merged under the same act.</p>
<p>
	That experience highlighted a need for special rules to govern this process. But was only in May 2011 that Nepal Rastra Bank came up with a special rule to facilitate mergers between BFIs.</p>
<p>
	When Nepal Rastra Bank (NRB) introduced the Merger By-laws in May 2011, many had still doubted whether Nepali banks and financial institutions (BFIs) would go for mergers as the concept was a relatively new for the country. &nbsp;That doubt seemed valid for some time. But soon a merger spree started among BFIs. Birgunj Finance and Himchuli Bikas Bank sought LoI from NRB in 2004 and completed their merger the same year becoming H&amp;B Development Bank. The process gained memorandum after that. (See box for the list of BFIs merged so far.)</p>
<p>
	<img alt="Nepal Rastra Bank" height="345" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_nrb.jpg" style="margin: 0 10px 0 0;" width="595" /></p>
<p>
	As the list on the box shows, most of the BFIs that have chosen to merge are development banks and finance companies merging with another institution of same category or with a commercial bank. However, latelycommercial banks too have started merging with another commercial bank. The recent such example is the merger process started by Bank of Asia Nepal and Nepal Industrial and Commercial Bank Limited.</p>
<p>
	<strong>Major Provisions of Merger By-Law</strong></p>
<ol>
	<li>
		<strong>‘A’, ‘B’ and ‘C’ class financial institutions can merge into each other. ‘D’ class FI can merge with another ‘D’ class FI only.<br />
		</strong></li>
	<li>
		<strong>FIs that want to merge should form a separate merger committee and sign Memorandum of Understanding (MoU).<br />
		</strong></li>
	<li>
		<strong>The due process including MoU should be completed before applying to the Nepal Rastra Bank (NRB)for Letter of Intent (LoI). NRB should hold a meeting within 15 days of receiving LoI application.<br />
		</strong></li>
	<li>
		<strong>NRB decides whether to issue LoI or not after conducting discussions and detailed study of concerned institutions.<br />
		</strong></li>
	<li>
		<strong>Due Diligence Audit should complete within six months of receiving LoI from the central bank.<br />
		</strong></li>
	<li>
		<strong>The detailed factual report comprising assets and liabilities of concerned institutions should be submitted to the NRB.<br />
		</strong></li>
	<li>
		<strong>Copy of the decision regarding name, address and share ratio of concerned financial institutions should be submitted to NRB.<br />
		</strong></li>
	<li>
		<strong>Action plan of concerned financial institution including date of operation after merger process is completed should be submitted to NRB.<br />
		</strong></li>
	<li>
		<strong><span style="font-size: 12px;">Other documents as prescribed by the NRB should be submitted to NRB.</span><br />
		</strong></li>
</ol>
<p>
	<strong><span style="font-size: 12px;">NRB can ask for merger if the following situation prevails:</span></strong></p>
<ol>
	<li>
		<strong>In case representatives of a family, business group, firm or company are found assuming posts in the boards of directors of two or more BFIs and/or their financial conditions remain unhealthy.</strong></li>
	<li>
		<strong>If the non-performing loans (NPL) exceeded 5 percent of the total loan portfolio for 3 consecutive years.&nbsp;</strong></li>
	<li>
		<strong>Increase in systematic risk (i.e. in a situation when a BFI seems likely to fail to meet liabilities).</strong></li>
	<li>
		<strong>If independent operation of a BFI is causing negative impact on the banking system.</strong></li>
	<li>
		<strong>If a BFI faces prompt corrective action (PCA) for three times or more.</strong></li>
	<li>
		<strong>If NRB finds that merger of systemically important BFIs will strengthen the entire banking system.</strong></li>
</ol>
<p>
	<strong>Facilities for Merger</strong></p>
<p>
	The new regulations have pledged relaxation on provisions for capital structure, shareholding limit for promoters, credit-deposit ratio, borrowings limit for promoters and deprived sector lending, among others.</p>
<p>
	If the merger causes increase in the shareholding percentage of any promoter beyond the stipulated limit, such promoters get five years time to bring down their stake within the limit.</p>
<p>
	Likewise, merged institutions are allowed additional three years to bring CD ratio down to the of 80 percent. Similarly, promoters get additional three years to bring their borrowing (loans) down to less than 50 percent of the total shares they hold in the merged BFI.</p>
<p>
	In a bid to lure BFIs to merger, the central bank has even promised a discount in refinance rate by one percentage point to the merged institution. It has also offered to lower penal rate on standing liquidity facility by half for three years in case two or more BFIs merged into one.</p>
<p>
	The central bank has also opened upgrading of &nbsp;fianancial institutions relaxed the restriction on upgrading of a BFI to encourage merger. A BFI can upgrade to higher category (category ‘C’ to ‘B’ and from ‘B’ to ‘A’) if the institution seeking to upgrade is formed through a merger).</p>
<p>
	The rules also promise to recommend to the government for exemption of taxes in case a BFI faces losses during the course of merger facilities include the time duration of using SLF will be expanded to 30 days from the existing 5 days for three years after completion of merger process. NRB can provide other facilities according to the need of the banks.&nbsp;</p>
<p>
	<strong>Challenges of Transition</strong></p>
<p>
	Most of the consumers do not get sense of transition of banks merger because in an ideal case, all banking services continue to function normally even during the transition. ATM cards work, checks consumers write do not bounce and consumers will be able to get the all services.&nbsp;</p>
<p>
	&nbsp;However, banks face several problems during the transition. Among others major challenges of merger are as mentioned below:</p>
<p>
	<strong>1. Brand Name</strong></p>
<p>
	The identity of the institution in the market is through the brand name. The image of an entity is joining with a brand image. So, the settlement in the brand name of the newly formed merged entity is essential.</p>
<p>
	<strong>2. Composition of board of directors (BoD) and shareholders</strong></p>
<p>
	The major decision makers in any entity are the board of directors and the shareholders. If the disputes arise among these people, the performance as well as the future of the entity will be directly hampered. So, the number as well as the persons that should represent at the BoD should be settled in cool mind.</p>
<p>
	<strong>3. Structure of the new management team</strong></p>
<p>
	The new merged entity comprises of the management team from two or more different entities. So, clear visions should be set-up for making the new management team which could handle the merged organization in coming days.</p>
<p>
	<strong>4. Employees Management</strong></p>
<p>
	As the organization is merged, at the same time the employees also come together. The major assets any organization is human resources. So, if the merged entity can not handle properly the grievances of the employees, the situation of disputes may arise. &nbsp;</p>
<p>
	<strong>5. Ownership Division</strong></p>
<p>
	The problem of division among the ownership might arise in the merged entity. The questions of shareholding as well as takeover of the share equity might create division among the shareholders. &nbsp;</p>
<p>
	<strong>6. Banking Software</strong></p>
<p>
	Various types of software are being used by the BFIs for the smooth operation. Huge cost and efforts had been gone in maintain the software in an organization. But if the two different entities are using two different types of banking software, the problem as well as cost may arise in the settlement of the books of accounts.</p>
<p>
	 </p>
<p>
	<strong>Need of Separate Acquisition Law</strong></p>
<p>
	Acquisition is, however, yet to come under the legal regime in the country. The central bank has said that it has been doing necessary preparations to introduce a separate legal mechanism on acquisition to encourage consolidation of the financial sector. Acquisition of financial institutions is difficult at present since there is no related legal provision, says CEO of Kailash Bikas Bank Krishna Raj Lamichhane who is also the president of Development Bankers Association.</p>
<p>
	NRB officials say that about half a dozen banks had held talks with the central bank about the possibility of acquiring regional development banks and finance companies to reach out to new areas. Acquisition is a relatively faster process as the challenges of merger such as it can be done once the buyer and the seller reach an agreement. Bankers say the introduction of legal provisions for acquisition will help bring down the number of BFIs in the country. The central bank needs to be careful while issuing new licenses and also the ability for smaller banks to withstand the economic crisis.</p>
<p>
	<strong>IPO Attraction</strong></p>
<p>
	The Nepali investors have been showing very encouraging response to the IPO of the company, especially of commercial banks. The data of Securities Board of Nepal (Sebon) reveals that 22 companies have got approval for the IPO from mid July 2012 to till the mid May of 2013. Shares worth of Rs 5.78 billion came in the market during this period. Of the total 22 companies, eight development banks, eight commercial banks, three finance companies, one insurance company and one hydro-power company.</p>
<p>
	<strong>The Direction Ahead</strong></p>
<p>
	The foremost challenge to the country’s banking sector in the realm of merger of banks is to create an environment where major financial institutions will go for merger voluntarily, says Upendra Paudyal, vice-president of Nepal Bankers Association (NBA).</p>
<p>
	The overall financial health of merged institutions has been found to be improved so far, he opines, saying the primary intention of the merger should be to strengthen capacity of concerned banks and financial institutions.&nbsp;</p>
<p>
	The policy taken by the Nepal Rastra Bank has resulted in positive signs since the market players in the arena of banks and financial institutions have saturated, adds Paudyal says. “Merger bylaws have played very crucial role in lowering the number of BFIs.”&nbsp;</p>
<p>
	But there is a question about the way forward of merger in the banking sector. The mathematical aspect has been highlighted so far by both the government and the BFIs, Paudyal says. It is cultural aspect which largely determines the success of merger. Sincere effort from all concerned parties is a must to make a merger journey a great success in the counry, he concludes.</p>
<p>
	&nbsp;&nbsp;</p>
<hr />
<p>
	<strong>In Nutshell</strong></p>
<p>
	The first case of merger between BFIs in Nepal was the merger of HISEF Finance Ltd into Laxmi Bank Ltd in 2004</p>
<p>
	<strong>BFIs that have merged already</strong></p>
<ul>
	<li>
		Himchuli Development Bank &amp; Birgunj Finance forming H&amp;B Development Bank Ltd</li>
	<li>
		Narayani Finance &amp; National Finance forming Narayani National Finance</li>
	<li>
		Nepal Bangladesh Bank &amp; Nepal-Sri Lanka Merchant Bank forming Nepal Bangladesh Bank Ltd</li>
	<li>
		Kasthamandap Development Bank &amp; Shikhar Finance forming Kasthamandap Development Bank Ltd</li>
	<li>
		Business Development Bank &amp; Universal Finance forming Business Universal Development Bank Ltd</li>
	<li>
		Machhapuchchhre Bank &amp; Standard Finance forming Machhapuchchhre Bank Ltd</li>
	<li>
		Global Bank &amp; IME Financial Institution &amp; Lord Buddha Finance forming Global IME Bank Ltd</li>
	<li>
		Infrastructure Development Bank &amp; Swastik Merchant Finance forming Infrastructure Development Bank Ltd</li>
	<li>
		Annapurna Development Bank &amp; Suryadarshan Finance forming Supreme Development Bank Ltd</li>
	<li>
		Vibor Bikas Bank &amp; Bhajuratna Finance forming Vibor Bikas Bank Ltd</li>
	<li>
		Alpic Everest Finance &amp; Butwal Finance &amp; CMB Finance forming Synergy Finance Co Ltd</li>
	<li>
		Shine Development Bank &amp; Resunga Development Bank forming Shine Resunga Development Bank</li>
	<li>
		Pashupati Development Bank &amp; Udyam Development Bank forming Axis Development Bank Ltd</li>
	<li>
		Prudential Finance &amp; Gorkha Finance forming Prudential Finance Company Ltd</li>
	<li>
		NIC Bank &amp; Bank of Asia forming NIC Asia Bank Ltd (Process ongoing)</li>
</ul>
<p>
	<strong>Letter of Intent (LoI) Received &nbsp; &nbsp;&nbsp;</strong></p>
<ul>
	<li>
		Premier Finance &amp; Imperial Finance to form Premier Imperial Finance</li>
	<li>
		Royal Merchant Banking and Finance, Rara Bikas Bank &amp; Api Finance</li>
	<li>
		Araniko Development Bank &amp; Surya Development Bank</li>
	<li>
		Central Finance Ltd &amp; Patan Finance Ltd</li>
	<li>
		Diyalo Bikas Bank Ltd &amp; Professional Bikas Bank Ltd</li>
	<li>
		NDEP Development Bank &amp; Hama Finance Ltd</li>
	<li>
		Siddhatha Development Bank &amp; Public Development Bank Ltd</li>
	<li>
		Five Regional Development Bank to form One National Level Gramin Bikas Bank</li>
	<li>
		Shangrila Development Bank Ltd &amp; Bagheshwor Development Bank</li>
</ul>
<p>
	<strong>LoI In Pipeline&nbsp;</strong></p>
<ul>
	<li>
		Lalitpur Finance Ltd &nbsp;&amp; Progressive Finance Ltd</li>
	<li>
		Sagarmatha Merchant and Finance Ltd &nbsp;&amp; Reliance Finance Ltd</li>
	<li>
		Social Development Bank &amp; Corporate Development Bank</li>
	<li>
		Vibor Bikas Bank &amp; Kist Bank Ltd</li>
	<li>
		Manakamana Development Bank Ltd, Infrastructure Development Bank, Yeti Finance Limited &amp; Valley Finance Ltd.&nbsp;</li>
	<li>
		Khadbari Bikas Bank &amp; Birat Laxmi Finance</li>
	<li>
		Global IME Bank &amp; Social Development Bank Ltd.</li>
</ul>
<p>
	<strong>Merger Process Dumped</strong></p>
<ul>
	<li>
		Kathmandu Finance Ltd &amp; Civil Merchant Bittiya Sanstha Ltd</li>
</ul>
<div>
	<hr />
</div>
<p>
	<strong><span style="font-size: 12px;">Financial Indicators of the Merged Entities</span></strong></p>
<div>
	<p>
		The major financial indicators of the merged entities have slightly improved compared to the pre-merger situation.&nbsp;</p>
	<p>
		Machhapuchhre Bank Ltd (MBL) had a higher level of non-performing loan (NPL) before merger than of the Standard Finance Limited (SFL). The NPL of MBL was at 2.84 percent whereas; the NPL of SFL was at 0.73 percent. After the merger, the NPL of MBL stood at 2.73 percent according to the financial report for mid-July 2012.</p>
	<p>
		The Credit Deposit (CD) Ratio of SFL was very high at 104.27 percent whereas, the ratio was at good level at 74.62 percent for MBL before merger. &nbsp;After the merger the CD ratio of MBL was maintained at 73.07 &nbsp; percent. But the Return on Assets (ROA) declined below one percent.</p>
	<p>
		&nbsp;Among the three merged entities in Global IME Bank Ltd, the financial performance of Lord Buddha Finance Ltd was not good. Its Capital Adequacy Ratio (CAR) was very high at 33.76 percent. &nbsp;Similarly, the NPL and ROA of the finance company were at 3.99 percent and -0.61 percent respectively. The NPL of merged entity, Global IME Bank Ltd stands at 1.54 percent as of the third quarter report of the FY 2012-13. At the same time the ROA is at 1.13 percent.</p>
	<p>
		Similarly, in Vibor Bikas Bank after merger of Bhajuratna Finance &amp; Saving Co. Ltd. has a high level of CAR at 14.42 percent but at the same time the level of NPL has increased to 32.63 percent till the third quarter of the F/Y 2012-13. The ROA of the bank is also seen negative. It is at -1.95 percent.&nbsp;</p>
	<p>
		Vibor Bikas Bank is again going ahead with a proposal of merger with Kist Bank Ltd. &nbsp;The NPL of the Kist Bank Ltd is seen comparatively lower than of the Vibor Bikas Bank. The ratio was at 32.63 percent and 7.89 percent for Vibor Bikas Bank and Kist Bank respectively as of third quarter of the F/Y 2012-13. &nbsp;Both the banks have posted the negative ROA during the third quarter of the FY 2012-13. Similarly, Vibor Bikas Bank has not been able to maintain the good level of CD ratio during the period.</p>
	<p>
		Recently, Bank of Asia Nepal Ltd and NIC Bank Ltd have received LoI from NRB for merger. The banks have already announced a plan to publish their combined financial report of the fourth quarter of F/Y 2012-13 in the name of the merged entity, NIC Asia Bank Ltd. Both the banks’ indicators show that they are in a financially sound position. After the merger they are likely to emerge even stronger in the banking market.</p>
	<p>
		<img alt="Financial Indicators of Some Merged and to be Merged BFIs:" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_financial_indicators.jpg" style="margin:0 10px 0 0;" /></p>
</div>
<div>
	<hr />
	<p>
		<strong style="font-size: 12px;"><span style="font-size: 12px;"><br />
		</span></strong></p>
	<p>
		<strong style="font-size: 12px;"><span style="font-size: 12px;">‘Merger is a need of the entire financial system’</span></strong></p>
	<p>
		 </p>
	<p>
		<strong><img alt="Bhaskar Mani Gyawali, Spokesperson, NRB" height="240" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_bhaskar.jpg" style="float:left; margin:0 10px 0 0;" width="200" />What &nbsp;is the situation of merger in the banking and financial Institutions (BFIs)?</strong></p>
	<p>
		The trend of merger in BFIs has grown lately. &nbsp;After the introduction of Merger Bylaws in 2011 by Nepal Rastra Bank (NRB), 22 financial institutions merged to become 10 within a year. This is very encouraging.</p>
	<p>
		<strong>Why is there a need for merger in the financial market?&nbsp;</strong></p>
	<p>
		Financial institutions have mushroomed in the country, thanks to the liberal policies adopted by Nepal Rastra Bank in the past. Given the size of our financial system, the number of BFIs looks more than normal. Many of these institutions had invested in the real estate sector without any long-term benefits. NRB was forced to fix a ceiling on real estate investment by banks after a surge in the volume of nonperforming loans.</p>
	<p>
		Investment by financial institutions in unproductive sectors caused a liquidity crisis in the market. These institutions also failed to maintain corporate governance. &nbsp;Financial institutions should be able to return money to depositors as required. NRB had introduced Merger Bylaws 2011 to improve the condition of financial institutions.</p>
	<p>
		<strong>Why are there no expected improvements in merged institutions?</strong></p>
	<p>
		Merged organizations are much improved in comparison to single and troublesome financial institutions. The process of merger has helped institutions increase their capital base and ability to return the people’s money.&nbsp;</p>
	<p>
		<strong>Can you briefly tell us the merger process?</strong></p>
	<p>
		Merger is a need of the entire financial system of Nepal. The share swap ratio is obviously an issue of tension in the pre-merger phase. NRB provides counseling services to all institutions which want to go for merger. The process is very simple. At first, the BFIs should take the special decision of merger thorough the General Meeting of shareholders. Then they should sign a Memorandum of Understanding (MoU) for merger. Then, after forming a merger committee, they should apply to the central bank for the Letter of Intent. NRB conducts interaction with concerned stakeholders and provides insights including strengths and weaknesses of the merging BFIs. If BFIs want to continue the merger process even after the interaction, NRB approves the LoI. Concerned financial institutions should approve new structure which will come into effect after the completion of the merger process.</p>
	<p>
		&nbsp;NRB should always deal the entire merger process carefully because merger should not promote monopolistic business.</p>
	<p>
		<strong>What are the post-merger complications? Does NRB intervene if complications arise in the post-merger phase?</strong></p>
	<p>
		Some minor complications are inevitable in the post-merger phase. Salary disputes, implementation of new structure and other managerial work create several complications. NRB provides the necessary assistance if the situation so demands. Similarly, the central bank may opt for positive intervention if the post-merger complications start to hurt the entire transactions of the concerned BFI.</p>
	<p>
		<strong>Are the BFIs reluctant for mergers?</strong></p>
	<p>
		Definitely not. But merger is a complex process. Two or more institutions can opt for a merger when they develop a sense of mutual trust. Many chiefs have to agree to make one chief. Jumbo administrative committees have to be downsized. The present scenario of mergers is pretty exciting.</p>
	<p>
		<strong>Is merger a less attractive proposition because of the low incentives for the same?&nbsp;</strong></p>
	<p>
		First, organizations should be aware about the merger process. They should be aware that merger is not for NRB but for them. This is because it is their responsibility to make the organization stronger and sustainable. Providing different incentives and schemes to organizations is like luring a child by giving them chocolates. It is unnecessary to entice them like that.&nbsp;</p>
	<p>
		<strong>The incentives provided to the merging institutions have been discontinued. What about reintroducing these insentives to the institutions that will merge now ?</strong></p>
	<p>
		NRB couldn’t continue the facility because of the incomplete budget. &nbsp;As soon as we have a full budget, NRB will renstate these facilities. The central bank is committed to facilitate the merger process.&nbsp;</p>
	<p>
		<strong>Where has NRB’s preparation regarding bylaws related to acquisition reached?</strong></p>
	<p>
		Legally, BFIs &nbsp;which want to acquire the stake of any &nbsp;other financial institution can do so. The only difficulty is that NRB does not have any specific guideline and legal provision to tackle the issue of acquisition. NRB, however, is very supportive if any financial institution wants to acquire the stakes of other institution.</p>
	<p>
		<strong>Is NRB considering forced mergers?</strong></p>
	<p>
		 </p>
	<p>
		NRB is not for forced mergers because there is a need for mutual bonding in order to operate the merged entity smoothly. But NRB might force institutions which are in miserable financial status and cannot improve the same over a period of time.</p>
</div>
<div>
	<hr />
</div>
<p>
	<strong>Initial Public Offering in Banking Sector</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<img alt="Niraj Giri" height="270" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_niraj.jpg" style="float:left; margin:0 10px 0 0;" width="200" />The capital market is a mechanism created to facilitate the exchange of financial assets with a maturity period of more than a year. It is a broad term embracing the buyers and sellers of securities and all the agencies that assist the sale and resale of securities.&nbsp;</p>
<p>
	Capital market activities started in Nepal in 1937 with the issuance of the shares of Biratnagar Jute Mills Ltd. However, a more structured market activity started with the establishment of a stock trading mechanism in 1976 along with the establishment of the Securities Exchange Center. Enactment of the Securities Act and establishment of the Securities Board in 1983 gave the impetus for the development of capital market in Nepal in a more organized manner. In the early 90s after the success of the first People’s Movement, the government adopted liberal economic policies and opened up various areas to the private sector. This paved the way for the entry of private banks into the country’s financial market.&nbsp;</p>
<p>
	With the opening up of the economy, banks and financial institutions (BFIs) from the private sector have been in the forefront of making initial public offerings (IPOs). The IPOs of BFIs are also the most sought-after IPOs in the secondary market. In fact, most of the trading that takes place in the secondary market is that of the shares of companies from the banking and financial sector. So, this sector has played a major role in the development of our capital market., the number of companies listed at Nepal Stock Exchange (NEPSE) as of May 17, 2013 was 224 of which 29 are commercial banks and 142 development banks and finance companies. Besides, 68 per cent of the daily trade at NEPSE is of the shares of commercial banks. This shows that the secondary market in Nepal is highly dominated by the banking sector. Why is this sector so dominant?</p>
<p>
	There are various reasons. First and foremost is the licensing requirement of Nepal Rastra Bank (NRB), the central bank. NRB has made it mandatory for BFIs to issue their shares to the public. BFIs have to go for IPOs within two years of obtaining the operating license from the central bank. Besides, in IPOs, funds flow from the provider to the user. This means the contribution of IPOs to financing companies is direct in the sense that it provides them with additional funds for either starting a new business or expanding or diversifying the existing ones. This might not sound true for banking sector companies. However, IPOs fetch them funds which they can use to lend or to meet the various other requirements such as capital requirement set forth by the regulator. IPO also gives the public investors a partial ownership of the company and an opportunity to be represented at its board of directors. This representation of public directors in the board helps to bring about transparency and good governance at the higher echelon of the company.</p>
<p>
	When Janata Bank Ltd &nbsp;issued an IPO worth Rs 600 million last year, it was believed that the bank had ill-timed the issuance as the secondary market indicator, the NEPSE index, was bearish. &nbsp;Investors were pulling out of &nbsp;the secondary market and the merchant bankers related with the IPOs, too, were worried about the subscription. However, when the IPO closed, the issuance had been oversubscribed by 2.43 times. This showed that the investors still had confidence in the IPOs of commercial banks. The IPO of Janata Bank was followed by that of Civil Bank Ltd which &nbsp;issued an IPO worth Rs 800 million which, in turn, was oversubscribed by 6.38 times. Recently, Commertz &amp; Trust Bank Ltd made an IPO worth Rs 600 million which was oversubscribed by 11.64 times. During the same period, IPOs of some development banks and finance companies were undersubscribed or even cancelled.&nbsp;</p>
<p>
	NRB has put a lot of emphasis on good corporate governance practices in the banking sector and banks are under constant supervision of the central bank. Barring a few, most banks have been giving good returns, in terms of cash dividend and bonus shares to their investors. The investors, too, have benefitted from a higher capital gain from the trading of shares of banks, compared to those of companies from other sectors. There is also a belief amongst the investors that commercial banks do not fail. This has boosted the investors’ confidence in banking stocks.&nbsp;</p>
<p>
	Both the government and the central bank have been persuading the BFIs for mergers in order to strengthen the banks and consolidate the growth of the financial sector. Some financial institutions have opted for merger and the effects of this will be seen on the market in the coming days. Though difficult, mergers will definitely strengthen the banks' capital base and enhance their operational efficiency through synergic effects. This, in turn, will attract more investors to banking stocks.&nbsp;</p>
<p>
	<span style="font-size:10px;">(The author is a Director at SEBON)</span></p>
<div>
	<hr />
</div>
<p>
	<strong>Problems of Merger</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<img alt="Krishna Raj Lamichhane" height="270" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_krishna.jpg" style="float:left; margin:0 10px 0 0;" width="200" />The country’s banks and financial sector witnessed a significant change with the introduction of merger bylaw by Nepal Rastra Bank (NRB), the central regulatory body of banks and financial institutions (BFIs). The bylaw has provided unique opportunities to BFIs to overcome the problem of capital inadequacy.</p>
<p>
	Nepal Rastra bank enacted merger bylaw in 2011 and the pace of merger have accelerated after that. The reasons of mergers among banks and financial institution is obvious, they want expand their presence in the market. Some major reasons of merger are as mentioned below:</p>
<p>
	<strong>Increase capital base:</strong> The reason of most of the mergers is that banks want to increase their capital base. The central bank has urged banks to enhance capital base to expand their services into the urban areas especially in the capital.</p>
<p>
	<strong>Expand services: </strong>Banking consolidation helps concerned institutions expand their services. For instance, merger provides opportunities of utilizing each other’s brand and public relation jointly. Banks and financial institutions can expand their services after increasing their capital base. Similarly, merger helps banks to increase investment capacity that will make them capable of investing in huge projects.</p>
<p>
	<strong>Implementing new and innovative ideas: </strong>Banking consolidation through merger will allow BFIs to explore chances of coming up with innovative ideas. Together, the banks and financial institutions can enhance their operation system and implement effective management.</p>
<p>
	However, the process of merging of banks and financial institutions is not free of hassles. There are basically two types of hassles to complete the merger process: i) external or created by the regulator and ii) internal or the managerial problems within banks and financial institutions.</p>
<p>
	At present, the central bank has made it mandatory to stop trade of shares after starting the merger process which, I think, should be changed. I do not see any logic and rationale behind this provision.&nbsp;</p>
<p>
	Similarly, the government does not provide any facility to the banks and financial institutions which want to be merged. I feel that the government should reduce corporate tax to 25 per cent from existing 30 per cent for five years after merger process complete. It is necessary because BFIs should invest huge chunks of money in managerial activities to complete the merger process. It is really challenging to ensure smooth transition and resolution of conflict likely to surface among the staff due to hostility, ego clashes or layoffs during the merger process.</p>
<p>
	It is a fact that the existing merger process between various financial institutions seem to be more forceful in nature. I do not mean that the Nepal Rastra Bank has put any pressure for mergers but the circumstances have made BFIs merge. I think the government should create an environment where banks and financial institutions voluntarily show their readiness to be merged.</p>
<p>
	<span style="font-size:10px;">(Writer is Chairman of Development Bankers Association and CEO at Kailash Bikash Bank)</span></p>
<div>
	<hr />
</div>
<div>
	<div>
		<strong>Merger and Its Challenges</strong></div>
</div>
<div>
	<strong><br />
	</strong></div>
<p>
	<img alt="Guru Prasad Paudel" height="270" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_june2013_nepali_banking_in_transition_through_mergers_and_ipos_guru_prasad.jpg" style="float:left; margin:0 10px 0 0;" width="200" />Business organizations can combine with each other in a various ways. One of the most common approaches is Mergers and Acquisition (M&amp;A), which combine independent firms under common control. After unveiling a merger bylaw, the practices of M&amp;A in Nepali banking sector has been increasing tremendously. Around two dozen BFIs merged each other and created 13 institutions. More than two dozen BFIs have got the letter of intent (LOI) to go for the merger. Even if merger has been practiced in the financial sector to cope the various issues, there has been no real academic effort to extensively appraise how employees are reacting, adapting and coping with the new realities in the post– merger period as well as how BFIs are achieving their business targets.&nbsp;</p>
<p>
	Furthermore, we should not forget that in achieving the objective of BFIs merger, quite a number of intrinsic risk factors may be involved both during and post merger period which should have to be address by regulators as well as by bank BOD and senior management level.&nbsp;</p>
<p>
	Literature says, merger that has been practiced internationally is not less challenging. Some inherent features of merger as well as some country specific problems add more challenges in it. In the past, tangible aspects (e.g. capital, raw materials, equipment etc.) were the major issues of merger. Now the scenario has changed, and intangible aspects (e.g., human capital, culture, knowledge, goodwill, brand etc) are emerging as key challenges. &nbsp;</p>
<p>
	We adopted merger strategy very lately; though it has more than 120 years long history internationally. Nepal dose not have separate Act about M&amp;A, so there may arise some legal risk in the future. Today, large BFIs desire to acquire small financial institutions but we have no Acquisition provisions. M&amp;A is significantly affected by the geo-political condition of the country. Present situation of our country is unfavurable for mergers because of the rise in concept of divergence and dissolution, which is a serious external threat for merger. Lack of specific Act and provisions regarding acquisitions and geo-political scenario are major challenges. Besides these, some challenges and problems are as follows:&nbsp;</p>
<ul>
	<li>
		Top executives and top level management team may leave unexpectedly. When they leave the merged organization the expected synergy will be evaporated.</li>
	<li>
		Expected synergies evaporate also because of cultural differences. Research says only 23 percent of all M&amp;A earn their cost of capital.</li>
	<li>
		Data migration plays vital role in the merger, sometimes this single task will be multi-time expensive than other factors of merger.&nbsp;</li>
	<li>
		Expenses get increased because of disposal of old stationeries, write-off provisions of duplicated branches.&nbsp;</li>
	<li>
		Power politics can be a major obstacle to the success of M&amp;A.</li>
	<li>
		Agency problem is another key challenge of M&amp;A.</li>
	<li>
		Who are going to leave from the BOD &nbsp;will be an anxious issue.&nbsp;</li>
	<li>
		It further creates anxiety while selecting CEO or top level management officials because the institutions undergoing merger have their own individual CEO or higher management authorities.&nbsp;</li>
	<li>
		Due Diligence Audit Report (DDAR) does not give accurate price of the institutions hidden contingent liabilities may get added which further enhance the challenge in the merger.&nbsp;</li>
	<li>
		Management of employee of duplicated branches is yet another high value expense occurred due to merger.</li>
</ul>
<p>
	<span style="font-size:10px;">(Writer is Deputy Director at Nepal Rastra Bank. The views expressed here do not necessarily represent the views of NRB)</span></p>
<div>
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			'description' => 'As per the NRB’s latest data, the country has 31 commercial banks, 87 development banks, 80 financial companies and 21 micro-finance companies. The number shows that there is tough competition among banks and financial institutions (BFIs) forcing them to face multiple challenges. The major one is surely the capital base.',
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			'id' => '1075',
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			'title' => 'Mirage Of Industrial Security',
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	 </p>
<p>
	Armed Police Force, an alternative police force of Nepal, has recently informed that it will mobilize the Industrial Security Force (ISF) as soon as the government adopts the ‘The Directives Relating to Customs, Revenue and Industrial Security.’ It is good news for fledgling industrial sector of Nepal, in a sense that something is certainly better than nothing.</p>
<p>
	For more than a decade now, industrial security has been a main concern for Nepal’s industrial and business sectors. The facets of insecurity are many. Industrialists and business people are often kidnapped, killed, threatened or extorted. Factories and businesses are forced to close down. Barriers are created for products reaching the markets, etc. This has had a very crippling effect on industrial growth, investment climate and overall expansion of the economy. As the result, the contribution of manufacturing sector to country’s GDP has gone down in the recent years and all along has remained far below its potential, much lower than the agricultural and service sectors.</p>
<p>
	In our context, industrial security is a complex issue since the insecurity stems out from a multitude of sources, mainly from the politically protected powerful formal or informal outfits. For this reason, a number of measures of industrial security of bureaucratic nature announced by different governments during last one decade have neither protected the industries nor the industrialists.</p>
<p>
	Therefore, more important than a force to be set-up, at first place, there must be a political commitment and honest implementation of the same if an effective security were to be provided to the sector. As long as the political parties, specifically some top leaders of major parties, continue to protect and nurture the criminal gangs and notorious dons, any security force of proposed nature will be rendered ineffective in no time. That is what has happened so far. Similarly, the violent activities that take place in the name of trade unions affiliated to these political parties is another headache, which in fact has in recent years forced a number of industries and businesses to close down permanently. In addition to it, frequent strikes and blockades very often organized by this or that political party are other main reasons of insecurity.</p>
<p>
	If the country is indeed determined to provide industrial security, it must first come in the form of political commitment of all reckonable political forces. They must be able to reign in their respective trade unions so as to prevent them from acting as ‘licensed criminal organizations’. Rampant impunity is another equally alarming phenomenon. Even if one is caught with reasonable evidence of involvement in criminal activities that jeopardize the industrial security, he is hardly punished. Political protection, corruption or legal loopholes set them free sooner than one could imagine.</p>
<p>
	Undoubtedly, an effective industrial security is possible only when the overall law and order situation of the country improves, political forces stop impeding the justice and making their unions an extortion apparatus. But, at the industry level, right of ‘hire and fire’ to the employer would give another level of security to the industries. This will put all those elements at bay who claim to be workers but never work in the industry but in the political front.</p>
<p>
	Equally crucial is an industrialist and businessman being true to his profession. If the business people align themselves with this or that political force, or habour political ambitions, they are naturally opposed by the rival political forces. It is no secret that a large number of businessmen clandestinely finance the political parties and leaders, not only because of compulsion but as an ‘investment’ at their free will. These activities certainly do not help to consolidate their security situation. For the proposed force to be effective or mere functional, political commitment on the part of parties and professionalism on the part of industries are minimum prerequisites.</p>
<div>
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			'description' => 'Armed Police Force, an alternative police force of Nepal, has recently informed that it will mobilize the Industrial Security Force (ISF) as soon as the government adopts the ‘The Directives Relating to Customs, Revenue and Industrial Security.’ It is good news for fledgling industrial sector of Nepal, in a sense that something is certainly better than nothing.',
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			'id' => '1074',
			'article_category_id' => '74',
			'title' => 'Century Of Indian Cinema: The South Asian Message',
			'sub_title' => '',
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			'content' => '<p>
	<em>Indian Cinema has turned a hundred years. And as it grew in shape, size, craft, value and visibility globally, it had love-hate relations in the South Asian region, whether in Nepal, Pakistan and Bangladesh. How have the relations of Bollywood with people and governments in South Asia evolved?</em></p>
<p>
	<strong>The 100 Years and Journey So Far</strong></p>
<p>
	Indian Cinema, not Bollywood, has completed a hundred years in May 2013, considering the release of the Marathi classic Raja Harischandra by father of Indian cinema, Dada Saheb Phalke, in May 1913 as the inception of Indian Cinema. Though the global face of Indian Cinema is surely Bollywood, the large-scale Hindi films from Mumbai, there are much more to the art and craft of cinema from India, specially the films in Malayalam, Bengali, Marathi, Tamil and Telugu languages. The non-Hindi films from India are equal in number and value of business to the Hindi films, all totaling some 1200 films in 2012 bringing in some USD 3.6 billion revenue. This is more than double the number of films produced by Hollywood though the revenue is more than a trillion dollars in Hollywood. The spread of the Indian cinema industry’s oeuvre is amazing. The films are shown in some 100 overseas markets, catalyzing the growth of trans-national creative networks, collaborations. Big studios Columbia, Disney and 20th Century Fox are now striking co-production deals with Indian companies.</p>
<p>
	<strong>Bollywood &amp; Pakistan:</strong></p>
<p>
	In the South Asian markets, especially in Pakistan and Bangladesh, Indian cinema was officially banned for long. However, that did not help the local entertainment industry and Indian cinema found pirated ways into the houses of people wanting the same.</p>
<p>
	The 1960s marked the high point of Pakistan’s film industry, when Abbot Road in Lahore filled with smart art-deco cinemas playing the latest colour offerings to packed houses. Today, the heart of movieland is dead. The 1998 hit Choorian briefly revived the industry. Its tale of a city boy who falls in love with a country girl promised to another man, was first dismissed by critics as derivate, but it proved a huge hit with movie audience who loved the way it pinched a proven Bollywood formula.</p>
<p>
	Pakistan had banned Indian films after going to war with its neighbor in 1965 but over the past few years, as relations between the nuclear-armed rivals have improved, authorities have been allowing a trickle of Indian films to be shown in cinemas. That has delighted movie fans and cinema operators but Pakistani film producers fear a flood of Indian films could mean the end of the local film industry.</p>
<p>
	However, in recent years some of Pakistan’s hottest talent has moved to Mumbai. Ali Zafar, one of the country’s biggest pop stars, made his Bollywood debut this year in Tere Bin Laden. Beena Malik, singers Nusrat Fateh Ali and Rahat Fateh Ali and many others are all too known. Add in a stagnating economy and criticism of Lollywood’s bawdy movies by Islamic groups, cinema in neighbouring India seems an attractive destination for young stars. Nilofar Bakhtiar, who chairs the Pakistan Senate’s standing committee on culture and tourism, suggested strengthening ties with Bollywood to help revive Lollywood’s fortunes, including film training opportunities. But the suggestion would lead to a faster exodus of talent to India, according to Qaisar Sanaullah Khan, secretary of the Pakistan Cinema Owners’ Association.</p>
<p>
	For long, competition from Bollywood fare as well as the mediocrity of Pakistani films means that many Pakistanis opt to stay at home and watch Indian movies on pirated DVDs. Cinemas have been struggling for years and many operators have given up and sold off their premises which have been converted into shopping centers or offices. From about 750 cinemas nationwide in the 1970s, there are now 300. But Indian films are breathing life back into Pakistani cinemas. Cinema operators are cashing in on the revival of interest in the cinema the Indian films have generated. Before screenings of Indian films began, a cinema ticket in Karachi cost less than 100 rupees. Now it is 150 rupees or more. Pakistani film distributors also welcome the revival of cinemas.</p>
<p>
	<strong>Bollywood &amp; Bangladesh:</strong></p>
<p>
	It’s official. After being exiled for 39 long years since 1972, Indian films were set to release in Bangladesh since late 2010. It’s no secret that Bollywood films are immensely popular across the border in Pakistan and Nepal, and Tamil films in Sri Lanka. However, thanks to protectionist measures by the Bangladesh government, Indian films have long been banned there. The rationale behind the ban that came into effect in 1972 after India won independence for them from Pakistan was to protect the fledgling Bangladeshi film industry. In theory, it was not a bad idea.&nbsp;</p>
<p>
	But the lawmakers forgot one small thing. In the information age, getting access to Indian films through illegal means is extremely easy. And the Bangladesh audience prefers Indian films, as the high number of shops selling illegal DVDs and the small number of cinemas in Dhaka testify.</p>
<p>
	In January 2010, Bangladesh decided to allow the release of Indian films but this happy period lasted only six months as aggrieved local filmmakers cried foul and appealed against the decision. Thus, Indian films were banned again. Now, cinema owners, fed up with the lack of local interest in local fare, appealed to the court to allow Indian film imports and the courts have agreed, leading to official Bollywood releases in Bangladesh since September 2011.</p>
<p>
	First of all, in the age of globalization and free sky we cannot keep resisting foreign culture to creep into our society. The popularity of Hindi cinema is immense not only in Bangladesh but also across the world. And people around the world can easily get access to the cable and satellite television. Moreover, DVD and free download of movies from the internet have made it even easier for the middle and upper class viewers to enjoy Hindi or English movie at will. These alternatives do not include the marginal class of the society. The irony is the middle-class in the country rarely go to cinema hall to watch Bengali cinema or keep themselves updated about news and views of Dhaliwood. It is strongly believed that the target population of Bengali cinema is no other than the rickshaw pullers, garments workers and other wage labourers. The quality of Bangladesh cinema is quite understandable in terms of its technical aspects and storyline, which are not comparable with any other country’s cinema such as Indian, or even Pakistan and Nepal.</p>
<p>
	&nbsp;One can easily ask why the ‘cinema protectors’ do not protest against English cinema or Hindi cinema shown on satellite TV or in the internet. The reason is quite obvious. It is either their family members who are direct consumers of those sources or they have no hand to regulate the sky. But, they only can regulate the taste and fate of the marginal people and cinema halls as they wish.</p>
<p>
	Also, the concept of ‘culture’ is not so easy to understand what we perceive it to be. It has different facets and dimensions which can encompass time and space and influence people in another society. We use the concept ‘culture’ without much thought and conceptualize it which is why the concept remains a vague one in academia and even in the socio-political sphere. Dhaliwood producers and exhibitors are now understanding that if their own cinema quality falls and cannot evoke the audience to the cinema hall what will happen to some 800 cinema halls that still survive across the country?</p>
<p>
	<strong>Bollywood &amp; Nepal:</strong></p>
<p>
	The making of Nepali films is said to have begun with D.B. Pariyar’s Satya Harishchandra, which was the first Nepali-language film to be shot. It was produced from Kolkata, India, and was released on September 14, 1951. Aama (meaning mother) was the first film produced in Nepal and was released on October 7, 1964. It was produced by the Information Department of His Majesty’s Government of Nepal. The first film to be produced under a private banner was Maitighar, which was released at the end of 1966 by Sumonanjali Films Pvt. Ltd. Although it was a Nepali movie, it had many Indians contributing toward its making. The Nepal government established the Royal Nepal Film Corporation in 1971. Mann Ko Bandh was the first film produced by the corporation. It was followed by Kumari (the first Eastman color Nepali film) in 1978, Sindoor in 1980, and Jeevan Rekha in a series. Their success opened up the avenue for private parties to enter into filmmaking as an industrial endeavor.</p>
<p>
	In 1990, Nepal witnessed important political change. The people’s movement brought the monarchy to its knees and democracy was restored. The society started to become open and vibrant. This had an important consequence for the fledgling film industry: It began to grow rapidly or even to “bloat”. There was an unprecedented growth in the number of productions. Within three years, some 140 films were made. Distribution started to develop. Market share in the existing market increased and the market itself expanded. Cinema halls increased to more than 300. Nepali filmmakers became optimistic of displacing Hindi films, which had dominated the Nepali market earlier.</p>
<p>
	The start of the Maoist revolution in Nepal in the mid-1990s was the beginning of the downfall of the domestic film industry. There was an unwritten ban on Hindi films too for quite some time. In the period of war and conflict, a very small number of films were made, and audience numbers fell sharply. It resulted in lower budgets and even lower performances, which resulted in even smaller audiences. In the later years of the conflict, the production and release of Nepali films had almost come to a standstill. Many actors and filmmakers left the country in search for work abroad.&nbsp;</p>
<p>
	Also, during the 1990s, some filmmakers, mostly with non-fiction base, started championing a new kind of cinema. They denounced the crude imitation of Bollywood aesthetics and demanded indigenous aesthetics and a more realistic approach. They made some films which have received some critical acclaim at home and some international recognition. Historic movies like Balidaan and Seema Rekha made during this period were appreciated both by critics and audience.</p>
<p>
	By 2006, the situation in Nepal calmed down. With the Maoists coming into mainstream politics, the Nepali film industry started to return to its previous state. Today, more films are being made and released. The production companies and those in the industry are enthusiastic about the country’s new situation. The return of peace has opened more venues for the shooting of films, and the industry is seen to be making good use of this time to revive its image.</p>
<p>
	<span style="font-size: 12px;">New generation moviemakers geared up to make sensible cinema with entertainment rather than Bollywood inspired socio-actions. Kagbeni, Sano Sansar, Mero Euta Saathi Cha,First Love, Kohi Mero, etc. are some of the fine examples of quality cinema in terms of presentation, performance, story and technical superiority. However, they lacked in connecting with the audience. In January 2012, a film named Loot was released which emerged as a blockbuster. It was also the first movie in decades to be screened more than 100 days in the cinema halls. Much recently Chapali Height broke opening weekend gross by earning 8.4 million at the box office, breaking one of the records held by Loot, but Loot still holds the distinction of the highest grosser by far.</span></p>
<p>
	After banning Hindi films in 2012, the breakaway faction of Maoists led by Mohan Baidya was forced to withdraw the ban within a few weeks ahead of the festive season. The party had imposed a ban on ‘vulgar’ Hindi movies in a bid to ‘safeguard national sovereignty’ and ‘promote a self-reliant economy’. Multiplexes and single screen theatres in Kathmandu began screening ‘Barfi’, ‘Heroine’, ‘Oh My God’ and ‘Kamal Dhamal Malamaal’---Hindi movies which were released before screening was stopped.</p>
<p>
	Due to the ban hall owners were either forced to down shutters or screen Nepali movies in few screens on discounted rates. But the response from movie goers was not enthusiastic. Movie halls incurred losses valued at nearly NRs 2.5 crore ( Rs. 1.5 crore approx) during the 10 days from October 1 to October 10, according to Ashok Sarma, managing director of Digital Cinema.</p>
<p>
	<strong>Conclusions:</strong></p>
<p>
	Given the complex reality of globalization in the age of free information and entertainment, we need to reconsider our cultural boundary and perception very seriously. Before anything else, we need to be more logically political and less emotionally cultural.</p>
<p>
	“Filmmaking is like a nuclear power. If used properly, it can immensely help mankind. And if misused, it can destroy many minds,” says the noted alternative film-maker of Assamese origin, Jahnu Barua. There can be cross-cultural flow through cinema across South Asia and this can help develop people-to-people relations.</p>
<p>
	Often the anti-woman or commodification of sex and violence through a large number of Bollywood films are questioned by critics in other South Asian nations. And rightly so. “It’s the job of cinema to condemn inexcusable social realities and portray reality as it ought to be — only a lazy film maker will claim that it’s impossible to do both while remaining entertaining and commercially viable,” says Anna MM Vetticad, author of The Adventures of an Intrepid Film Critic. A trip to the cinema can easily be a lesson in how to objectify women: skimpy clothes, close-ups of bare midriffs and of course, ‘item numbers’. Post the December 16 Delhi gangrape, the lyrics of the Fevicol se &nbsp;song came under fire. &nbsp;However, it is important to celebrate some changes for the positive as well. Though unable to entirely shrug off their unease of independent or ambitious women (think the climax of Cocktail or Fashion), recent movies have given us heroines who are vocal and free-spirited. Movies such as Aiyya frankly depict female desire. Even sexiness is no longer the preserve of the Sheilas or the Chikni Chamelis. In Zoya Akhtar’s Zindagi Na Milegi Dobara, Katrina Kaif is presented as beautiful, attractive but the camera doesn’t letch at her.&nbsp;</p>
<p>
	Further, film talent training, giving boost to film exhibition revenue, and creating production standards to achieve by allowing Indian Cinema can easily be the benefits in other South Asian nations.&nbsp;</p>
<p>
	This is not to say that there should not be any form of protection given to local film industry and talent. Make shows of local cinema compulsory in certain time-slots, by law. Allow local block-busters to be screened in prime time too, through market forces. Let local media adequately publicize the local cinema and its talent. Let tax rebates be given to local cinema and higher entertainment taxes on Bollywood cinema. Co-opt and legalize the income coming in, do not ban and languish in revenue.</p>
<p>
	Further, let there be institutional ways of promoting South Asian cinema within India too: through South Asian Film Festivals, workshops, day-time shows in certain markets (depending on the language spoken in those markets). Pakistani Urdu based films would go well in select halls of Lucknow, Hyderabad, Mumbai and even Delhi. Nepali films will have a good market in eastern and north-eastern India specifically. Bangladeshi films are being released in West Bengal routinely. The trend needs to be encouraged further through institutional and media efforts to this end.</p>
<div>
	<span style="font-size:10px;">(The author is former Dean of Symbiosis International University and President of the advisory board at Whistling Woods School of Communication, Mumbai.)</span></div>
<div>
	<span style="font-size:10px;"><br />
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			'keywords' => 'Century Of Indian Cinema: The South Asian Message, South Asia, New Business Age, Prof Ujwal K Chowdhury',
			'description' => 'Indian Cinema has turned a hundred years. And as it grew in shape, size, craft, value and visibility globally, it had love-hate relations in the South Asian region, whether in Nepal, Pakistan and Bangladesh. How have the relations of Bollywood with people and governments in South Asia evolved?',
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			'title' => 'ICA Gives Flavours Of Openness',
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			'content' => '<p>
	 </p>
<p>
	<strong>By Bhawani Timilsina</strong></p>
<p>
	Young professionals find it difficult to further their academic careers as it requires managing work and study simultaneously. Open universities are gaining huge popularity among such professionals. The International Centre for Academic (ICA) has been helping such &nbsp;young professionals to pursue their academic dreams since its inception in 1997.</p>
<p>
	A majority of Nepali students are quite familiar with the idea of working and studying together. However, it is a task easier said than done. Binayak Shrestha was 23 when he felt the need to enhance his academic strength for career growth. But he found it difficult to continue study and work simultaneously. Then a friend suggested him to visit ICA which runs classes for courses offered by Indira Gandhi Open University, (IGNOU). Shrestha completed his degree back in 2008. He shares, “The experience of studying at ICA helped me enhance my academic qualification and build up confidence in a completely open and flexible environment. The advancement in technology supported me and my friends to get quality education while continuing our jobs.</p>
<p>
	The revolution in the information and communications technology has brought about a sea change in the teaching and learning system. Universities around the world are making their education ‘open’ to all; technology has made it possible for students to earn degrees without physically attending these universities. Open universities offer openness in selecting courses without the barrier of “prerequisites and essentials.” The demand of open universities has been growing around the world.</p>
<p>
	Paridhi Acharya, 26, completed her post graduation from ICA in 2010. &nbsp;What made her select a course of an open university was flexible environment that it provides, especially for those students who want to take work and study side by side. &nbsp; “I am thrilled that I got a degree from such a renowned university and completed my post graduation securing high marks,” &nbsp;says one of the gold medallists of ICA.</p>
<p>
	ICA is a partner institution of IGNOU which is one of the most popular educational institutions in India, offering inclusive education to students since its establishment in 1985.Being one of the pioneers in Open and Distance Learning (ODL) in Nepal, ICA has been actively involved in resource development and research and publications related to the ODL system. So far, ICA has helped thousands of students get internationally acclaimed degrees.Students who want flexibility in study are highly attracted by distance–learning programmes, which often rely on pre–prepared study materials instead of lecturers on a daily basis.&nbsp;</p>
<p>
	<img alt="ICA Gives Flavours of Openness" height="308" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/business_education_jue2013_ics_classroom(1).jpg" style="margin:0 10px 0 0;" width="595" /></p>
<p>
	ICA presently offers 44 different Academic, Value Added and Awareness programmes through ODL mode in Management, Humanities &amp; Social Science, Tourism, Computer Science, Journalism and Mass Communication, Education, Rural Development, Health Science, Social Work, Gender and Development Studies, Extension and Development Studies, Continuing Education etc. Currently, the cumulative student strength of ICA is more than 1200. The learners enrolled at ICA are freshers or professionals from diverse fields such as hospitality, financial institutions, telecoms, corporate houses, embassies and diplomatic agencies etc. ICA also offers such programmes in collaboration with government and non government agencies through an arrangement of programme specific Work Centres and a strong network of Learner Support Centres located in different parts of Nepal.</p>
<p>
	<strong>Premium courses of IGNOU:</strong></p>
<p>
	MBA/Management Programme aimed at graduates from any stream who may/may not be working but would like to pursue a career in Management. &nbsp;</p>
<p>
	MEG aimed at providing learners with a sound base in language as well as exposure to a wide range of literature, with options for specialisation in a particular area. The learners are expected to develop confidence in their critical and analytical abilities.</p>
<p>
	MCA aimed at preparing graduate students for productive careers in software industry and academia by providing an outstanding environment for teaching and research in the core and emerging areas of the discipline.</p>
<p>
	MARD or MA Programme in Rural Development (MARD) is designed to include such diverse academic contents that are essential in the making of this discipline in the Indian Context. A critical component of this Programme is dissertation based on empirical research in rural areas. The Programme will be useful for personnel working in various Govt. Departments/agencies, NGOs, Cooperatives, Banks and other institutions engaged in rural transformation. It will also be beneficial for fresh graduates interested in pursuing careers in the discipline of rural development.</p>
<p>
	PGDJMC or Post-Graduate Diploma in Journalism and Mass Communication provides opportunities for working media personnel to enhance their knowledge and skills for their professional development</p>
<p>
	B. Ed. aimed to systematize experiences and strengthen the professional competency of in-service teachers, to imbibe the knowledge and develop understanding of various methods and approaches of organizing learning experiences of secondary school students, to develop skills required in selection and organizing learning experiences, to understand the nature of the learner and the learning processes, to develop skills required for dealing with the academic and personal problems of learners, etc.</p>
<p>
	BCA aimed at opening a channel of admission for computing courses for students, who have done the 10+2 and are interested in taking computing/IT as a career. After acquiring the Bachelor’s Degree (BCA) at IGNOU, there is further educational opportunity to go for an MCA at IGNOU or a Master’s Programme at any other university/institute. Also, after completing BCA Programme, a student should be able to get an entry level job in the field of Information Technology or ITES.</p>
<p>
	BTS aimed at providing knowledge, competence, and skills in the professional area of tourism at the Bachelor’s Degree level. This programme, like other Bachelor’s Degree Programmes, can be completed in three years.</p>
<p>
	BA or Bachelors Degree Programme which admits students from both formal and non-formal streams. The non-formal stream consists of those students who have not cleared 10+2 or an equivalent exam. To get admitted to IGNOU’s degree programme, they have to pass its Bachelor’s Preparatory Programme (BPP) first.</p>
<p>
	B. Com., in which students without a formal qualification of 10+2 or its equivalent can also seek admission and they can study at their own pace and convenience over a period of three to six &nbsp;years.</p>
<p>
	Students also get basic knowledge in the core areas of humanities, social sciences, computers and science &amp; technology as there are some compulsory foundation courses. Besides selective courses in commerce there is flexibility to choose courses from a wide range of other disciplines.</p>
<p>
	DCE or Diploma Programme in Creative Writing in English provides understanding, skills and professional knowledge about the art of writing and develops the creative ability of those interested in a professional career as a freelance writer. The curriculum is structured to impart instruction in progressive stages so as to ensure that a learner can assimilate information about a writer’s art and develop his/her creative ability. This Programme includes training in imaginative writing skills in relation to feature articles (women’s issues, book reviews, etc), writing short stories, and scripts for TV/Radio, and writing poetry.</p>
<p>
	DTS, which provides the learners with the facility to specialize in the chosen operational areas in tourism studies and helps them acquire the associated skills.&nbsp;</p>
<p>
	BPP, which is a Programme offered to those students who wish to pursue a Bachelor’s Degree of IGNOU but do not have the essential qualification of having passed 10+2. Without such a qualifying certificate, these students are deprived of higher education. To enable such students to enter higher education stream, IGNOU has designed this preparatory programme.&nbsp;</p>
<div>
	<hr />
</div>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>‘We plan to add more programmes’</strong></p>
<div>
	<strong style="font-size: 12px;"><img alt="Biswajit Mukherjee, Chairperson / MD ICA" height="315" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/business_education_jue2013_ics_chairperson_biswajit.jpg" style="float:left; margin:0 10px 0 0;" width="200" />How long have been the journey of ICA in Nepal and its association with IGNOU?</strong></div>
<div>
	<p>
		ICA was established 16 years ago in 1997. We are associated with IGNOU since 2002.&nbsp;</p>
	<p>
		<strong>What are milestones of this journey, most memorable moments or developments?</strong></p>
	<p>
		First, induction meeting for the 1st Batch of 22 learners of IGNOU from Nepal that was held in January 2003 at Dharan. It marked the start of IGNOU’s journey in Nepal. We owe thanks to all the 22 first-batch learners who believed in us though we did not have any official recognition from the government back then.&nbsp;</p>
	<p>
		IGNOU awarded us the Best Overseas Partner Institution 2010 for the best services at the 22nd Convocation of the university held on April 2, 2011. Recently, we received the Best Overseas Partner Institution 2013 Award for the Best Services from the university &nbsp;at the 26th Convocation held at IGNOU headquarters in New Delhi on April 12, 2013 which was provided by the President of India, H.E. Pranab Mukherjee. Our hard work finally paid off; ICA’s association with IGNOU has grown stronger and stronger. We are now more determined and motivated to providing better services to our learners.</p>
	<p>
		<strong>You offer both Degree and Diploma education. How do they differ in content and status?&nbsp;</strong></p>
	<p>
		Degrees are more academic in nature; the curriculum is so structured that the person undergoing the course is provided an overview of several subjects apart from one subject that the person may be interested in exploring further for both career and academic interests. It is of longer duration like 2-3 years. Diplomas focus on getting a person trained and qualified in a particular business or trade. Some of them even include a short stint of apprenticeships and on-the-job training. They are of shorter duration - maximum one&nbsp;<span style="font-size: 12px;">to one and a half years.</span></p>
	<p>
		<strong>Are these degrees equivalent to those from TU and KU in content, legality and industry recognition?</strong></p>
	<p>
		Yes all our degrees are equivalent to those from TU, KU and other universities of Nepal. Our centre is also approved by the Ministry of Education, Government of Nepal. I also take this opportunity to inform our readers that IGNOU degrees have been enjoying global recognition much before they were recognized by Nepal. It is also one of the enlisted universities by the United Nations.</p>
	<p>
		<strong>What are teaching and evaluating methods, tools and systems you use?&nbsp;</strong></p>
	<p>
		Yes, we very strictly follow the evaluation tools and methods prescribed by IGNOU and have developed a few of our own systems too which we have implemented with IGNOU’s approval. Such measures have enhanced the quality of evaluation and feedback provided to the learners.</p>
	<p>
		<strong>Who are your faculty?&nbsp;</strong></p>
	<p>
		Our faculties are the professors/ lecturers/ professionals associated with some of the leading universities or MNC’s of Nepal and India. We try to make sure that we have the best of the best faculties who are competent enough to handle the subject matter through the ODL system. We consider our faculties on a par and, in some cases, &nbsp;even more competent than the faculties of conventional universities or colleges on handling ODL system much better. &nbsp;</p>
	<p>
		<strong>What recognitions and accreditations does ICA have?</strong></p>
	<p>
		ICA is approved by the Ministry of Education, Government of Nepal. IGNOU degrees obtained through ICA are recognized by TU and KU. We are also the only member of the Asian Association of Open Universities (AAOU) from Nepal.</p>
	<p>
		<strong>What are your future plans?</strong></p>
	<p>
		We do have some big plans for the future. Now that we have been successful in establishing ourselves as one of the pioneer institutions for Open and Distance Education in Nepal, we plan to add more programmes relevant to our context and society each academic year. We have established Learner Support Centres (LSCs) at four different locations in Nepal and intend to establish more LSC in other parts of the country too so that more and more students from outside the valley can benefit. &nbsp;&nbsp;</p>
	<p>
		We are now quite seriously thinking to invest more in &nbsp;technology so that we can take education to the door steps of every Nepali. We are trying to establish a research centre in association with IGNOU. It’s been a long-standing request of ours with IGNOU in order to develop skilled human resource required for the ODL system, development of courses appropriate for the Nepali context and contextualization of some of the existing courses.</p>
	<hr />
	<div>
		 </div>
	<p>
		<strong>‘Ours is&nbsp;<span style="font-size: 12px;">learner-centric learning process’</span></strong></p>
	<p>
		<strong><img alt="Amit Giri, CEO, ICA" height="290" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/business_education_jue2013_ics_ceo_amit.jpg" style="float:left; margin:0 10px 0 0;" width="200" />How does one &nbsp;study without attending classes?</strong></p>
	<p>
		Open and Distance Learning is basically an arrangement which enables a learner to study at the time, place and pace of their choice according to their circumstances and requirements. Hence, attending a class is not an issue. Moreover, the learners after admission receive specially-designed materials called Self Learning Materials (SLM) from the university. The teacher is inbuilt. The learners can comprehend by just going through the SLM.&nbsp;</p>
	<p>
		To supplement the learner’s understanding of the subject matter, we organise Academic Counselling Sessions on Saturdays where learners get their queries answered and doubts cleared. Attending these sessions is, however, not mandatory.&nbsp;</p>
	<p>
		<strong>What is the difference between studying at a regular college and at an open university?</strong></p>
	<p>
		The basic difference is that in a regular college a learner has to attend classes where attendance is mandatory. It is a teacher-centric process for learning. There are restrictions of age, qualifications and physical presence. Costing is rarely done on cost-effective and efficient basis. In an Open University, physical presence is not mandatory. Ours is more learner-centric and provides a more flexible access to education. It is both cost-effective and efficient system for education. Multi-media and multiple methods are widely used.</p>
	<p>
		<strong>Are the degrees of open universities recognized and accepted by the industry?</strong></p>
	<p>
		Yes degrees of IGNOU obtained through ICA are recognized in Nepal and globally. A number of our graduates are absorbed in Nepal and abroad. The latest research shows that in countries like the UK, Australia, and the United States, graduates from Open Universities are in demand in the job market. The degrees are recognized and accepted universally. In Canada the degrees of IGNOU are assessed and recognized by the International Qualifications Assessment Service (IQAS) and it is one of the universities listed by the United Nations.</p>
	<p>
		<strong>What is the evaluation mechanism?</strong></p>
	<p>
		Evaluation of learners is done i) through assignments which carry 30 per cent weight in the final grades of the leaner. ii) On the basis of an examination conducted at the expiry of the minimum duration prescribed for the concerned course called Term End Examination (TEE) which carries 70 per cent weight towards the final grades of the learner. iii) The University may also prescribe courses, specific project works, field work and practical assignments for the learners.&nbsp;</p>
	<p>
		<strong>Where are the Term End Exams held?</strong></p>
	<p>
		They are generally held in the month of June and December every year. At present, there are two exam centres in Nepal i) Exam Centre Code: 9601, Biratnagar ii) Exams Centre Code: 9602, Kendriya Vidyalay, on the premises of the Embassy of India, Kathmandu. Exams at both centres are conducted under the overall supervision of the Embassy of India. One can also take the exams from centres in 43 countries and through the Indian missions in countries with no IGNOU centres.</p>
	<p>
		<strong>Why do you at all have entry restrictions in an ‘Open System’?</strong></p>
	<p>
		The University is concerned about the acceptability of students in society hence they have to ensure equivalence of the degrees/diplomas of IGNOU with that of the conventional universities. So, they have to keep restrictions, e.g. one has to be a 10+2 for joining BA/B.Com/BSc, but that 10+2 need not be with a threshold marks. In other words, restrictions are there but they are minimal</p>
	<p>
		<strong>We have heard that one can graduate from IGNOU even without the 10+2 education. Is it really possible?</strong></p>
	<p>
		&nbsp;Yes, if you are 18 or above, you may join our Bachelor’s Preparatory Programme (BPP). It is a six- month programme where you have to select any two from three preparatory courses in social sciences, commerce and mathematics. If you qualify, you may join Under Graduate (Besides Science Streams), short-term skill development and value-added programmes and any academic programme of IGNOU for which (10+2) is the minimum educational requirement.&nbsp;</p>
	<p>
		<strong>Does it mean that BPP is equivalent to 10+2?</strong></p>
	<p>
		<span style="font-size: 12px;">Not at all. It is only an enabling mechanism (bridge course) for joining graduation and some other programmes of IGNOU by those who for some reason or the other had missed the opportunity of completing school or higher education.</span></p>
</div>
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			'title' => 'Towards Solutions In Higher Education System',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong><br />
	</strong></p>
<p>
	<strong>By Dr A K Sen Gupta</strong></p>
<p>
	The higher education system and institutions operating therein are passing through a great crisis of identity. The situation is more or less equally turbulent in all parts of the world. The most important stakeholders i.e. the students are often terms as Gen Y whose attitudes and attributes are at complete variance with those of Gen X i.e. the earlier generation. The differing and rising expectations of this new generation from the system in general and society at large call for different types of stimulus so that the response is positive. The Gen Y students are often with unexpected demands and fathomless expectations; they are restless and continuously looking for something different, difficult and complex. Domino effect is quite visible in terms of tangible gains and short-term material benefits.&nbsp;</p>
<p>
	Consequently, there are several problems that are encountered by higher education institutions (HEIs). First, since majority of the teachers are from earlier generation, it is difficult for them to appreciate &amp; empathize with students of Gen Y as regards their attitude to life including their behaviour in class room. Second, the conflicting value systems of both the teachers and taught (two different generations) many a times give rise to situations of misunderstanding, if not confrontation. And finally, Generation Y students do not perceive any value addition in their personal as well as professional lives from Gen X teachers as they feel that the competencies of earlier generation may not be useful in developing the skill sets required for 21st Century. The resultant effects are sometimes disastrous: confrontation, alienation, disinterest in studies, absenteeism, among others. My interaction with students and faculty from a large number of HEIs in different parts of the developing world shows a disturbing trend of increased misunderstanding between the teachers (Gen X) and students (Gen Y).Being the centres of learning, the HEIs must foster a proper and conducive environment of understanding between the teachers &amp; learners where teachers enjoy teaching and students enjoy learning. Only such a climate can breed innovation and lay foundation stone for the economic and social growth of the country.</p>
<p>
	In such an environment, the only solution lies in empowering the students of the HEIs where they are involved in all decision making processes of managing the respective HEI. The existing emotion of alienation arises from the feeling of being supervised &amp; guided by people who, according to them, are not competent being from a generation that does not understand their values &amp; feelings. Therefore, the best way to solve this complex problem is to create an institutional mechanism whereby the students take their own decisions as regards their destiny inside the HEI. These include:</p>
<ol>
	<li>
		<strong>What should be taught?<br />
		</strong></li>
	<li>
		<strong>How it should be taught?<br />
		</strong></li>
	<li>
		<strong>Who should teach?<br />
		</strong></li>
	<li>
		<strong>What types of competencies / skill sets they would like to develop for themselves?<br />
		</strong></li>
	<li>
		<strong>What types of external interventions are needed to develop such competencies?<br />
		</strong></li>
	<li>
		<strong>What type of learning environment they would like to have?<br />
		</strong></li>
	<li>
		<strong>What facilities they would like to have?<br />
		</strong></li>
	<li>
		<strong>How much fees are desirable considering all the facilities?<br />
		</strong></li>
</ol>
<p>
	<span style="font-size: 12px;">This essentially means that the students should decide what is best suited for them. The idea is to augment the student engagementthrough empowerment in the learning &amp; administrative processes so that they becomemore responsible as well as accountable.The axiom is: let students (in close coordination with teachers) run the institution and decide for themselves what is best for them. It is parallel to employees running a company.&nbsp;</span></p>
<p>
	The ideas suggested are indeed revolutionary in nature but worth implementing to bring down the sense of alienation of students from the educational system. To sum up, what is being suggested is not a mere structural change in managing HEIs but a paradigm shift in running educational institutions where the consumers co-create the brand and its value propositions.</p>
<p>
	<strong>Couple of issues become critical in this regard:</strong></p>
<ul>
	<li>
		Students are expected to be mature and responsible to take upon the onus of partly managing and running the institution both at macro and at micro level. Student Councils or Student Unions have been successful instruments / models in this regard in many educational institutions in different countries. But, these Councils in many places are either political or ineffective. What is needed is to make them active and involved in decision making processes. The experimentation of senior responsible positions like Vice Principals (or Deputy Directors) being created from among the students on a rotation basis, may be tried.</li>
	<li>
		Teachers and managements of the HEIs should accept this experimentation on a serious note. As this would make the system open and transparent, it might create volatility at least to begin with.&nbsp;</li>
	<li>
		In such a scenario there should be a person designated as Mentor who is acceptable to all in case of any difference of opinion and who may be able to take care of all possible disputes.</li>
	<li>
		Simultaneously, there should also be the concept ofreverse mentoring whereby the Gen Y can guide / mould the shape of things to come through proper interaction with Gen X teachers / management, the ideas / solutions coming from the former for a change and implemented by the latter.&nbsp;</li>
</ul>
<div>
	<span style="font-size:10px;">Authored by Dr A K Sen Gupta, Founder and Convener, Higher Education Forum (HEF), the largest on-line community of higher educational professionals on a global scale. His past assignments include Director of leading B-Schools in India, World Bank Consultant and Professor at National Institute of Bank Management (NIBM), Pune, India.</span></div>
<div>
	<span style="font-size:10px;"><br />
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			'description' => 'Empowering students is the ultimate solution in this age of information boom and increased democratization of education.',
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	(int) 13 => array(
		'Article' => array(
			'id' => '1070',
			'article_category_id' => '84',
			'title' => 'Aptech Group: Focusing On IT Education',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	Starting about 18 years ago in Nepal with Aptech Computer Education (ACE), Aptech Group already has four computer education centres in Kathmandu. It also has Arena Multimedia centre in Kathmandu, which provides education on animation and multimedia. Arena is a division of Aptech. Now the company is preparing its expansion outside Kathmandu through franchisees. &nbsp;&nbsp;</p>
<p>
	“Talks are on the progress with investors in different cities and the details are being worked out,” says Aptech Master Franchisee in Nepal Shobha Kunwar.&nbsp;</p>
<p>
	<img alt="Shobha Kunwar, Aptech Master Franchisee in Nepal" height="289" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/information_technology_june2013_aptech_group_master_franchisee_shobha.jpg" style="float:right; margin:0 0 0 10px;" width="209" />Established in India in 1986, Aptech has by now presence in 40 countries across the world including Nepal and has a total of 1,308 training centres.&nbsp;</p>
<p>
	The group opened its first ACE in Nepal in 1995 and launched Arena Multimedia in 2001. According to Kunwar, Aptech has already trained over 50,000 people in Nepal and employs 120 people in the country.</p>
<p>
	<strong>Aptech Group in Nepal</strong></p>
<ul>
	<li>
		<strong>New Baneshwar – ACE</strong></li>
	<li>
		<strong>Kantipath – ACE and ARENA MULTIMEDIA</strong></li>
	<li>
		<strong>Kumaripati – ACE</strong></li>
	<li>
		<strong>Pokhara – ACE</strong></li>
</ul>
<p>
	<strong>Aptech Group</strong></p>
<p>
	The official website of Aptech Group claims, it has provided IT training to more than 6.5 million students in over 40 countries. It is also claimed to be the first IT training organisation in Asia to get ISO 9001 certification. The group has Headquarter in Mumbai, India.</p>
<p>
	Range of products by Aptech Group&nbsp;</p>
<ul>
	<li>
		<strong>1996 - &nbsp;Arena Multimedia, offers animation and multimedia</strong></li>
	<li>
		<strong>2006 – Acquired Avalon to gain an entry into the aviation industry</strong></li>
	<li>
		<strong>2007 – Entered Hardware and networking through N-power now rebranded as Aptech hardware and networking Academy</strong></li>
	<li>
		<strong>2009 – Started English language training</strong></li>
	<li>
		<strong>2010 – Acquired MAAC leading to become the leader in the Indian animation and multimedia training</strong></li>
</ul>
<p>
	<strong>Products&nbsp;</strong></p>
<p>
	Courses offered by ACE are related to all areas of software development. Aptech Certified Computer Professional (ACCP) is billed as flagship career program of the company. “It is a comprehensive IT course, which equips the student with advanced programming knowledge to build enterprise solutions with extensive hands on training and project work, giving students real world experience,” explains Kunwar.&nbsp;</p>
<p>
	<strong>ACCP Features:</strong></p>
<ul>
	<li>
		<strong>Technology platforms from Sun Java and Microsoft<br />
		</strong></li>
	<li>
		<strong>Emphasis on coding and source code documentation standards<br />
		</strong></li>
	<li>
		<strong>Upgraded Java and .NET technologies<br />
		</strong></li>
	<li>
		<strong>Projects/ e-projects<br />
		</strong></li>
	<li>
		<strong>Improved ‘Blended Learning’ delivery methodology<br />
		</strong></li>
	<li>
		<strong>Intensive practice and Assessment Laboratory workshops<br />
		</strong></li>
	<li>
		<strong>Open source Technology<br />
		</strong></li>
</ul>
<p>
	<span style="font-size: 12px;">Arena Multimedia, a sister body of Aptech Group offers animation and multimedia course ranging from three months to two years career courses and has presence in 20 countries. It has tie ups with Macromedia and Adobe.</span></p>
<p>
	Arena has been shaping the multimedia industry equipping students with the finest skills and state-of-art technologies in multimedia, says Kunwar. According to her, Arena students are making exciting career in the fields of advertising, gaming, entertainment, 2D and 3D animation, print publishing, web designing and development, among others.&nbsp;</p>
<p>
	“Aptech’s semester end online examination system is designed to offer comprehensive, secure and consistent online testing,” says Kunwar. “Evaluation happens in real time and answers are automatically encrypted for QA control.”&nbsp;</p>
<p>
	According to her, once a student completes a career course with Aptech their credit can be transferred to an international university with which the company has tie up. This transfer is available in Bachelor’s final year. Among such universities are Royal Melbourne Institute of Technology, University of Portsmouth, Middlesex University and Mahatma Gandhi University. &nbsp;</p>
<p>
	<strong>Future Strategy</strong></p>
<p>
	As the Nepali job market is becoming more and more competitive, the demand for IT education is growing as a result. This provides a good opportunity to the IT education provides to expand their business in Nepal.&nbsp;</p>
<p>
	Kunwar says, “Nepal has huge potentiality for IT education and the market has accepted the importance of IT in every field. Hence, we are planning to open education centres in all the major cities of the country with variety of courses.”</p>
<p>
	According to her, one component of the expansion drive is to launch Cambridge English Language Teaching (ELT) next year in Nepal. &nbsp;ELT will offer wide range of English Language course including spoken English, accent training, foundation courses, IELTS and TOEFL preparation.&nbsp;</p>
<p>
	<strong>CSR</strong></p>
<p>
	As part of Corporate Social Responsibility, Aptech is planning to provide computer education for rural kids. “Besides this, the company has plans for orphanages as well. Under this, Aptech will be donating books, computers and other materials in near future,” said Kunwar.&nbsp;</p>
<hr />
<p>
	<strong><span style="color:#f00;">SWOT</span> Analysis</strong></p>
<p>
	<b>Strengths&nbsp;</b></p>
<ul>
	<li>
		<b>Experienced of nearly three decades</b></li>
	<li>
		<b>Link up with world renowned institutions</b></li>
	<li>
		<b>Presence in 40 countries</b></li>
</ul>
<p>
	<b>Opportunities</b></p>
<ul>
	<li>
		<b>Growing market</b></li>
	<li>
		<b>Rising pool of educated people who are seeking IT education</b></li>
	<li>
		<b>Awareness of IT education</b></li>
</ul>
<p>
	<b>Threats</b></p>
<ul>
	<li>
		<b>Political uncertainty</b></li>
	<li>
		<b>Power cuts</b></li>
</ul>
<div>
	<b><br />
	</b></div>',
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	(int) 14 => array(
		'Article' => array(
			'id' => '1069',
			'article_category_id' => '78',
			'title' => 'What Happens When We Treat The Country First And Self Interest Later? A True Revolution',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img alt="Buddha's Delight" height="111" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/budda's_delight_imageJune2013.jpg" style="float:left; margin:0 10px 0 0;" width="100" />Today people across globe are closely watching a country. The notion about that country revolves around a tag of Corruption, Nepotism and Lawlessness. It faced decades of political turmoil and sometimes complete paralysis of normal life. Being a young country, with 50% population below the age of 30 and bordering a large economy, there were significant migrations for greener pastures. Though the population grew moderately and the middle class was emerging as power house, country forecast was bleak due to radical syndication and rampant corruption. It is Mexico I am talking about.&nbsp;</p>
<p>
	All the negative images of Mexico were true till some years back. It was facing problems from poverty, drug cartels, political instability, syndication, strikes – you name it. Then a revolution happened with a paradigm shift on people’s mindset. It was a silent revolution without any tag of any of the “Isms”. One day Mexicans decided that they have had enough. They realized that either they have to move on or they will be moved aside and their future cannot be defined by handicaps like Corruption and Political instability. They woke up to change the Image of Mexico.&nbsp;</p>
<p>
	And look at the result. Financial Times reported on 19th September 2012 that Mexican exports surpassed the combined export of the rest of the Latin America. Chrysler uses their Mexico base to supply to the Chinese market. Chinese market – you have heard it right!!!</p>
<p>
	How this has happened? It is the power of collective wisdom. When society decides to change together – the result can be awesome. Suddenly people do not want to be held hostage by radicalism. It’s a Mexican Wave – a Tsunami which gripped the country. Political parties were forced to act to avoid extinction. Waking up from the political coma, Mexico’s three major political parties decided to work together and signed a “Pact for Mexico”. &nbsp;</p>
<p>
	Mexico still has huge governance problems to fix; nobody claims otherwise. Even then, the change was profound and clear. As American Journalist Dorothy Day said - “The greatest challenge of the day is: how to bring about a revolution of the heart, a revolution which has to start with each one of us”. In that way, Mexico went in the right path. Acknowledging a problem is half the cure. &nbsp;</p>
<p>
	In recent times Mexico signed 44 free trade agreements; more than any country in the world. It is more than double than China and four times than Brazil at the same period; shocking but true. With the greatly increasing number of graduating engineers and skilled laborers in recent times, slowly they are gaining manufacturing market share back from Asia and attracting increasing global investment. &nbsp;By the way, my sources say that in SAARC region, number of Engineering and Medical students in USA from Nepal is more than that of Pakistan and Bangladesh put together despite of Nepal’s population being only a fraction of them. So patient is alive and kicking; Indeed. &nbsp;</p>
<p>
	But – we are discussing Mexico. What happened there? One trend became clear. Now, an average Mexican citizen can judge performances on real time. They can inform the authority about violations or infrastructure failure and government mends things. How quickly things are being fixed are also being tracked online. This gives them power. This power sets pressure points to force changes. Thus, Mexico liberalized commerce, fixed accountability and democratized Media. Basically, they democratized the democracy itself. Democracy in Mexico is not restricted to only a handful of people. Authorities and Government became accountable and answerable to all.&nbsp;</p>
<p>
	As per World Bank, in 2 years by end of 2011, Per Capita GDP of Mexico increased from US$7852 to US$10047 while India moved from US$1127 to US$1489 and China from US$3749 to US$5445. It means a Country with 116Mill population &amp; 1.1% growth rate increased their per capita exposure to goods by 28% in 2 years. As per latest figure - Mexican inflation is around 4% and unemployment rate 5%. 1.758 Trillion US$ Mexican GDP (based on PPP) gets a whopping 23% contribution from Industry!! Do we need more argument in favor of the power of people and the might of collective Wisdom?</p>
<p>
	Is this a revolution? Revolution came from Latin word “Revolutio”, which means “a turnaround”. Revolution is a fundamental change in structures that takes place in a relatively short period of time. It does not mean shutting down things or politicizing events or organizing strikes. Revolution means positive changes for the betterment of all member of the society. Revolution occurs when fellow citizens become accountable and behave responsibly. It is a turnaround which has to start with each Individual through small action. Even a handful of people can start this momentous change. As Margaret Mead said - “Never believe that a few caring people can’t change the world. For, indeed, that’s all who&nbsp;<span style="font-size: 12px;">ever have.”</span></p>',
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