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			'id' => '889',
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			'title' => 'Agriculture Focus: Ranjan Enterprises',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Ranjan Enterprises" height="48" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_corporate_focus_ranjan_enterprises_logo.jpg" style="text-align: justify;" width="227" /></p>
<p style="text-align: justify;">
	Ranjan Enterprises Pvt Ltd (REPL) under the banner of LPRANJAN GROUP is a business enterprise, established in 2001 to carry out business in the field of agriculture sector. Chairman of the group is Laxmanjee Prasad. It has two sister bodies Ranjan Enterprises Pvt. Ltd and Ranjan Trade Concern.</p>
<p style="text-align: justify;">
	REPL carries out business in the field of agriculture sector dealing in products under agrochemicals (organic and inorganic), organic fertilizers, seeds, public health insecticides, fertilizers (micronutrient &amp; chemicals), etc. REPL caters business by appointing dealers &amp; supplying to corporate houses engaged in agriculture business and own consumption.</p>
<div style="float:right;margin:0 0 5px 10px;">
	<p style="text-align: justify;">
		<img alt="Shashi Ranjan, Ranjan Enterprises" height="178" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_corporate_focus_ranjan_enterprises_shashi.jpg" width="150" /></p>
	<address>
		<strong>Shashi Ranjan</strong></address>
	<address>
		<strong>Director</strong></address>
	<address>
		<strong>Ranjan Enterprises Pvt Ltd</strong></address>
</div>
<p style="text-align: justify;">
	Sharing the purpose of establishment of the company, Shashi Ranjan Director of REPL said, “Our initial aim was to cater the remote regions of Nepal by setting up an integrated platform to provide the best quality and most reliable products throughout the country for the welfare of the farmers, plant growers and local consumers”.&nbsp;</p>
<p style="text-align: justify;">
	REPL plans to move into imports of fertilizers like Urea, DAP and MOP. Agriculture equipment like cultivator, harrow, tractors and mini tillers &nbsp;are the next areas where the company is planning to enter in the future. The company also plans to venture into agriculture farm by purchasing land and cultivating and growing vegetables and fruits and breeding livestock as well.&nbsp;</p>
<p style="text-align: justify;">
	REPL have recently launched fertilizers like Copper Sulphate, Ammonium Sulphate and Organic fertilizer named JAIVIK. REPL along with its sister concern has ventured into Agriculture Sprayers and Agriculture Shade Nets of different size and capacity.&nbsp;</p>
<p style="text-align: justify;">
	Director Ranjan shared that there is no turning points yet for them but because of trust and goodwill, they are able to win the hearts of consumers and also the corporate sector who have been doing business with them. With the trust, we have ventured into different fields of agriculture activities, says Ranjan.&nbsp;</p>
<p style="text-align: justify;">
	Ranjan Trade Concern (RTC) has been established to handle local business and related imports in FMCG and agriculture sector. Currently, the company plans to focus steps in taking further steps in trading business emphasising with imports, distributorships and general purchases of FMCG goods, industrial goodsn and agriculture products from around the world for trading, exclusively in the country. RTC also plans to move into import of chemicals, and petrochemicals.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Major Products</strong></p>
<p style="text-align: justify;">
	REPL have launched mass range agriculture. Insecticides, Fungicides, Rodenticides, Organic insecticides, organic fungicides, organic fertilizers, chemical fertilizers, Public Health Insecticides, Knapsack Sprayers, Garden Sprayers and spare parts, Agriculture shade nets and seeds are some examples.</p>
<p style="text-align: justify;">
	<strong>Human resource management&nbsp;</strong></p>
<p style="text-align: justify;">
	REPL has small human resource team. “Being a small business enterprise our team is small,” said director Ranjan. “But our team is well experienced to handle problems of farmers, especially in their fields such as pests’ management.”&nbsp;</p>
<p style="text-align: justify;">
	<strong>Corporate Social Responsibility (CSR)</strong></p>
<p style="text-align: justify;">
	While accepting that his organization is well aware of corporate social responsibility, director Ranjan said, “At present we have not moved directly into CSR projects but have plans to do so in near future”.</p>
<p style="text-align: justify;">
	<strong><span style="font-size:14px;"><span style="color: rgb(255, 0, 0);">SWOT Analysis</span></span></strong></p>
<p style="text-align: justify;">
	<b>Strength:</b></p>
<p>
	Farmers and other consumers Satisfaction &amp; trust&nbsp;</p>
<p>
	<span style="font-size: 14px;"><b><span style="font-size:12px;">Weakness:</span></b></span></p>
<p>
	<span style="font-size: 14px;"><span style="font-size:12px;">Still unable to tap new markets within the country due to lack of awareness and lack of new partners.&nbsp;</span></span></p>
<p>
	<span style="font-size: 14px;"><b><span style="font-size:12px;">Opportunity:</span></b></span></p>
<p>
	<span style="font-size: 14px;"><span style="font-size:12px;">Huge market for agriculture related product, rising awareness&nbsp;</span></span></p>
<p>
	<span style="font-size: 14px;"><b><span style="font-size:12px;">Threats:</span></b></span></p>
<p>
	<span style="font-size: 14px;"><span style="font-size:12px;">Unhealthy competition within the sector</span></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(255, 0, 0);"><br />
	</span></span></p>
<p style="text-align: justify;">
	<img alt="Ranjan Enterprises" height="129" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_corporate_focus_ranjan_enterprises_products.jpg" width="580" /></p>',
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			'description' => 'Ranjan Enterprises Pvt Ltd (REPL) under the banner of LPRANJAN GROUP is a business enterprise, established in 2001 to carry out business in the field of agriculture sector.',
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			'title' => 'Banks In CAMELS And EAGLES',
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	 </p>
<p style="text-align: justify;">
	<strong>By Rashesh Vaidya</strong></p>
<p style="text-align: justify;">
	Standard Charted Bank Nepal Limited is seen at number one position under the CAMELS Rating. The bank stood at the number one position as per the evaluation done on its second quarter financial report of the fiscal year 2012-13. The bank has been capable to maintain good total expenses to total assets ratio during the period among the 32 commercial banks. Similarly, the bank has also maintained good return on assets as well.&nbsp;</p>
<p style="text-align: justify;">
	The newly established commercial banks stood at the top rank under the EAGLES Rating. The low level of non-performing loan to total loan and advance ratio was the main reason behind these banks to stand at the top rank. Similarly, the high growth ratio of the loan and advances also boosted them to get top rank.&nbsp;</p>
<p style="text-align: justify;">
	As per the EAGLES rating, Commerze and Trust Bank Limited stood at the first position. Similarly, Sanima Bank Limited which was upgraded from the development bank to commercial bank came at second. &nbsp;The good position of the credit-deposit ratio and capital adequacy ratio of the newly opened bank has helped them to gain the top position.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The CAMELS system evaluates banks on the following six parameters:</strong></p>
<ol>
	<li style="text-align: justify;">
		<strong>Capital Adequacy: </strong>Capital adequacy has been the main pillar of existence of any bank. Banks have to maintain a proper mix of different types of capitals to avoid pressure on their dividend policies and inadequacy of total capital funds against the risk exposure. Capital adequacy is measured by the Capital to Risk-Weighted Assets Ratio (CRAR). A sound capital base strengthens the confidence of depositors.</li>
	<li style="text-align: justify;">
		<strong>Asset Quality:</strong> One of the indicators for asset quality is the ratio of non-performing loans to total loans (Gross Non-Performing Assets - GNPA). The gross non-performing loans to gross advances ratio is more indicative of the quality of credit decisions made by bankers. A higher GNPA is indicative of poor credit decision-making.</li>
	<li style="text-align: justify;">
		<strong>Management: </strong>The ratio of non-interest expenditures to total assets can be one of the measures to assess the working of the management. This variable, which includes a variety of expenses, such as payroll, workers’ compensation and training investment, reflects the management policy stance.</li>
	<li style="text-align: justify;">
		<strong>Earnings:</strong> It can be measured as the return on asset, ratio.</li>
	<li style="text-align: justify;">
		<strong>Liquidity:</strong> The ratio of cash maintained by a bank and balances with the central bank to the total asset, is an indicator of the bank’s liquidity.&nbsp;</li>
	<li style="text-align: justify;">
		<strong>Sensitivity to Market Risks/Systems and Control:</strong> Risks associated with adverse movements in the exchange rates (including gold positions), interest rates, liquidity and investment in equity are covered under market risk management. A bank faces market risks either from its investments in government securities and bonds or from the exchange rate risk that persist in matching position. The market risk is managed by the banks’ Asset and Liability Committee (ALCO) which assesses policies and levels of risk appetite. &nbsp;Similarly, the central bank of Nepal, Nepal Rastra Bank has made a provision of additional 2 percent of the total Risk Weighted Exposures by Supervisory Review.</li>
</ol>
<p style="text-align: justify;">
	<img alt="Top Ten Banks as per CAMELS and EAGLES" height="292" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_sectoral_banks_per_camels_and_eagles.jpg" width="580" /></p>
<p style="text-align: justify;">
	In the CAMELS rating system, each bank is assigned two sets of ratings:</p>
<ol>
	<li style="text-align: justify;">
		Performance Ratings, which comprise six individual ratings that address each of the CAMELS components; and</li>
	<li style="text-align: justify;">
		An overall Composite Rating, which is a single rating based on a comprehensive assessment of the bank’s overall condition.</li>
</ol>
<p style="text-align: justify;">
	Both the ratings are scored on a numerical scale of 1 to 5 in the ascending order of supervisory concern where “1” represents the best rating and “5” the worst.</p>
<p style="text-align: justify;">
	Here is a description of the rating scores for each of the five components:</p>
<p style="text-align: justify;">
	Rating 1 (A) indicates very strong performance</p>
<p style="text-align: justify;">
	Rating 2 (B) indicates above-average performance that adequately provides for a safe and sound operation of the BFIs.</p>
<p style="text-align: justify;">
	Rating 3 (C) indicates performance that is flawed to some degree.</p>
<p style="text-align: justify;">
	Rating 4 (D) indicates unsatisfactory performance which, if left unchecked, could threaten the solvency of the BFIs.</p>
<p style="text-align: justify;">
	Rating 5 (E) indicates very unsatisfactory performance and calls for immediate remedial attention for the survival of the BFIs.</p>
<p style="text-align: justify;">
	The rating of banks can be further developed by giving a score to each component of the CAMELS, known as the Composite CAMELS Rating Score. The Composite CAMELS Rating can be calculated as:</p>
<p style="text-align: justify;">
	Composite CAMELS Rating= C (0.25) + A (0.25) + M (0.25) + E (0.10) + L (0.10) + S (0.05)</p>
<p style="text-align: justify;">
	Each of the above six parameters can be weighted on a scale of 1 to 100 and contains a number of sub-parameters with individual weightage.</p>
<p style="text-align: justify;">
	The EAGLES system is able to measure and compare banks’ performance in a more determinate, objective and consistent manner. The name is derived from the key success factors confronting banks today, i.e. Earning Ability, Asset quality, Growth, Liquidity, Equity and Strategy. This approach has gained credibility among the banking community and fund management industry in Asia, for competition analysis and investment planning, respectively.</p>
<p style="text-align: justify;">
	<img alt="Sectoral, march 2013" height="514" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_sectoral_banks_ratios.jpg" width="580" /></p>
<p style="text-align: justify;">
	<strong>EAGLES evaluate banks on the following six parameters:</strong></p>
<ol>
	<li style="text-align: justify;">
		<strong>Earning Ability:</strong> Earning ability is shown by three noteworthy indicators – Return on Assets (ROA), Return on Shareholders’ Fund (ROSF) and Income/Overheads Ratio (IOR). The importance of IOR is usually not well understood. The main point lies in that income depends on external market forces, while overheads are highly influenced by internal staffing. So, the banks must know how to adjust the staffing according to the market demand for its products and services. This is shown by three indicators - ROA, Return on Net worth (RONW) and IOR.</li>
	<li style="text-align: justify;">
		<strong>Asset Quality:</strong> Asset quality is best assessed by on-site inspection of the bank’s loan portfolio. If this is not possible, asset quality can be measured by the level of bad debt provisions, that is, bad and doubtful debts (BDD) as a percentage of total loans. A conservative approach will dictate that the quantum of provision to err on the high side is rather low. This is best judged by the level of bad debt provisions, that is, bad and doubtful debts as a percentage of total loans. A conservative approach will dictate that the quantum of provision is on the high side is rather low.</li>
	<li style="text-align: justify;">
		<strong>Growth: </strong>Growth rates of loans and core deposits are the most important indicators of how a bank wants to position itself in the market.</li>
	<li style="text-align: justify;">
		<strong>Liquidity:</strong> Liquidity can be described as the ability of a bank to have sufficient funds to meet cash demands for loans, deposit withdrawals and operating expenses. For this reason, a balance should be made between the amount of deposits garnered and the quantum of loans extended. The indicator is the deposit-to-loan ratio or credit-deposit ratio (CD Ratio).</li>
	<li style="text-align: justify;">
		<strong>Equity:</strong> Equity level and capital adequacy have a profound impact on the bank. International guideline (Basel II) stipulates that a bank must have a minimum capital equivalent to 8 per cent of the risk adjusted assets. Even the central bank of Nepal, the NRB, has mentioned a comfort zone of 6 and 10 per cent of core capital and total capital funds, respectively, based on the risk-weight assets (percent).</li>
	<li style="text-align: justify;">
		<strong>Strategy:</strong> The effective management of a bank’s strategy is indicated by the strategic response quotient (SRQ). It assesses the management’s ability to lend, garner deposits, generate fee-based income and manage the operating cost. An appropriate balance of the three core banking activities depends on the bank’s strategy. The SRQ is obtained by dividing the interest margin by net operating cost (that is, total operating cost minus fee income).</li>
</ol>
<p style="text-align: justify;">
	Seventeen banks could not feature on the top-ten list under both ratings. The banks with negative capital adequacy ratio and very low return on assets were seen behind in ranking under CAMELS rating. &nbsp;Similarly, the banks with huge amount of non-performing loan and negative return on assets were seen at the lowest rank under EAGLES rating.</p>',
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			'description' => 'The good position of the credit-deposit ratio and capital adequacy ratio 
of the newly opened bank has helped them to put at top position.',
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			'title' => 'A Balanced Life',
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			'content' => '<p>
	 </p>
<p>
	<img alt="Sumit Kedia, Personality, March 2013" height="432" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_personality_sumit.jpg" width="450" /></p>
<p>
	Sumit Kedia, the Executive Director of Kedia Group and the Director of Sita Ram Gokul Milks Ktm Ltd, vividly remembers the time when his company was deep in debt and was on the verge of being sold out. “Those were the most stressful times of my life. The Bank had no trust upon us, and the entire Group was about to be blacklisted,” recalls Kedia. It all happened immediately after he joined the company after completing his studies.&nbsp;</p>
<p>
	<strong>Making first moves</strong></p>
<p>
	New to the business and the entire business scenario of Nepal back then, Kedia says he was overwhelmed by the situation at first. Gradually, he with the help of the Group was able to convince the banks to give some leverage to the company. One of the banks agreed to swap the loan and with some arrangement, he was able to pay off the entire loan after some time.&nbsp;</p>
<p>
	On the management part, he made the backward linkage strong by directly interacting with the farmers and thus, creating an economic interdependence. This, in turn, improved the quality and quantity of the raw material. “I personally met the farmers; I went to cow sheds and educated them. As a result, we received better quality raw material and enjoyed more security than our competitors,” explains Kedia. He also introduced new technology and updated the equipments used in the factory. This significantly enhanced the efficiency and the cost of production went down as well.</p>
<p>
	<strong>Carving a niche</strong></p>
<p>
	All of Kedia’s efforts have finally paid off. Today, Sita Ram Gokul Milks, a sister concern of Kedia Group is nation’s leading dairy processor and distributor, with production capacity of more than 2.86 million gallons of milk per year. The company has completed the journey of 17 years, and operates through a highly advanced technological plant with latest machineries producing milk and dairy products like milk, ghee and butter. The company is all set to produce flavoured milk and paneer within the next month. &nbsp;</p>
<p>
	Kedia firmly believes that responsibility with accountability is the mantra to success. “Nothing can be achieved alone, but a responsible and accountable team working for a common goal can achieve almost anything,” says Kedia. Kedia has been taking care of Sita Ram Gokul Milks for the last 10 years.&nbsp;</p>
<p>
	<strong>Memory lane</strong></p>
<p>
	Born to Bishwa Nath Kedia and Krishna Devi Kedia in Birgunj in 1976, Kedia did his entire schooling and higher education in India. During his school years, he was a hostel student in Darjeeling and Mussoorie. He completed his high school in Delhi and graduated from DAV College in Chandigadh, and completed his post graduation in MBA from Symbiosis Institute of Business Management of Pune.&nbsp;</p>
<p>
	As a child, most of his time was spent in hostel. “I used to come home only for holidays, so found it hard to adjust with my family. I was more comfortable with my friends than with my family,” recalls Kedia. He was home only for a few months in a year and also was oblivious of the development of the family group, Kedia Group.</p>
<p>
	After completing his education, he returned home and all of a sudden he was in family atmosphere that he wasn’t much used to, and also was into business abruptly. “I really found it hard to manage the three major parts of my life, my friends circle, my family and my business. &nbsp;But today, I have balanced all three aspects of my life,” says Kedia. &nbsp;As he became more involved with family and business, his friends circle shrunk. Today, Kedia says family and business are his top priority.&nbsp;</p>
<p>
	Married for 10 years with Ritu Kedia, Kedia is a father of a son and a daughter, Rachit Kedia and Shristi Kedia. His marriage was an arranged one and he didn’t even know her wife very well before marriage. “We were given just half an hour to discuss and decide. Within that short time, I fell in love with her eyes, and I immediately said yes. I’m happy I made the right decision,” shared Kedia.&nbsp;</p>
<p>
	<strong>Social involvement</strong></p>
<p>
	Kedia is involved with Round Table Nepal, an international fraternity with both business and family gatherings. “In this fraternity, there are people from business community and also their families. This has given me friends for life, with same wavelength. We go on various outings and picnics through the fraternity,” says Kedia. &nbsp;He usually spends his evenings and weekends with the friends of the fraternity, but still feels there is nothing like childhood friends. &nbsp;Kedia is also the First Vice President of Nepal Dairy Association and has been the Director of National Dairy Development Board for two tenures.&nbsp;</p>
<p>
	<strong>Finding inner peace</strong></p>
<p>
	&nbsp;As a student, Kedia loved to play basketball and was also in the college team. “I’d still love to play now, but my business doesn’t really allow me to do that anymore. However, after a stressful day, I like to give some time only to myself,” says he. He is a member of health club in Radisson hotel, loves swimming sauna and steam, and does cardio exercises. Kedia says he isn’t much into books, watches movies at times, doesn’t really care about gadgets. “I’m a simple person with simple desires; I want to lead a simple and modest life. I don’t believe in showing off and pretence. Kedia travels for work and leisure, but thinks he needs to take more vacations “I need to improve this part of my life. I don’t take many vacations. I’m trying to do it this year, may be ill go to Switzerland this year with my family,” says Kedia. &nbsp;&nbsp;</p>
<p>
	<strong>Changed dream</strong></p>
<p>
	Growing up, Kedia had dreams of being in hospitality and tourism business. He dreamt of owning a hotel as a graduate student and he even applied to study Hotel Management in Switzerland after graduating, but says it didn’t work out. Life had other plans for him. “As a member of a huge joint family, family’s dreams and decision always meant more than that of a member. Family’s decision mattered more to me, and I was needed in the group. So, I gave up my dream for my family,” shared Kedia.&nbsp;</p>
<p>
	<strong>Experience speaks</strong></p>
<p>
	Introvert by nature, Kedia says he is a shy guy. Once he was invited as a chief guest at a co-operative’s AGM. He had to give a speech in public, but he became very nervous and he completely blacked out. “I don’t even remember what I said there. With time, I improved my public speaking skills and I have no problem with that today,” says Kedia.&nbsp;</p>
<p>
	Kedia sees Vinod Chaudhary is his idol, and says his struggle and success has always been an inspiration to him. &nbsp;Kedia had family relations with Chaudhary, and personally knew him as he is also a member of Young Entrepreneur Forum (YEF) under Confederation of Nepalese Industries (CNI). He also sees Shankar Lal Kedia, his uncle as idol within his family.&nbsp;</p>
<p>
	Kedia opines that capital should stay within the country, regardless of the challenges faced by businessmen and entrepreneurs. According to him, rather than criticising the government and society, one should maintain a positive mentality and enhance the economy with a combined team spirit. He also feels that the spirit of ‘us’ is needed for development of a family, an organisation and an entire nation.</p>
<p>
	<strong>Foreseeable future</strong></p>
<p>
	As for his future plans, Kedia is not in investment mode now, as he feels there is no stability in the country. He thinks at such a point, it’s wise to retain what he has. New ventures may be started only after the problem of labour and load shedding are over. &nbsp;</p>
<p>
	Kedia says he loves his profession, and work is his worship. He feels that he needs to do something for the company till he retires. “I work together with all my staffs, all my team, not just my personal growth, but also for their growth, I like to see through the perspective of ‘us’ rather than ‘me’. I like to create a win-win situation for all,” says Kedia.&nbsp;</p>
<p>
	Kedia says that if all goes well, he may also be involved in the hospitality business. “After all, fulfilments of inner desires give you true satisfaction. It was always my dream to be in the sector. Let’s see what future has in store,” Kedia is optimistic.</p>
<div style="text-align: justify;">
	<img alt="Sumit Kedia with Family" height="378" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_personality_sumit_with_family.jpg" width="514" /></div>',
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			'description' => 'Life always has equal share of success and failure, one should never forget his roots when he is on top of success and one shouldn’t let the fire inside him die out when faced by failure, says Sumit Kedia a young business person, rephrasing what he learnt from his uncle Shankar Lal Kedia.',
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	(int) 3 => array(
		'Article' => array(
			'id' => '885',
			'article_category_id' => '48',
			'title' => 'Poems By Professionals',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	Nepal&rsquo;s business community has now ample time for rejuvenated aesthetic sense and cascading creativity as there is no business, no money and virtually no work as country reels under seemingly never-ending uncertainty. Many businessmen and professionals have thus tried to solace themselves by expressing pangs and pains in poetry. Here are few scattered pieces of poems taken from their diary. Please read them all:</p>
<p>
	&nbsp;</p>
<p>
	&nbsp;</p>
<p>
	<strong>From a banker:</strong></p>
<p>
	<em>A liquidity crisis again envelops&nbsp;</em></p>
<p>
	<em>Base rate, KYC, Basel III to adhere</em></p>
<p>
	<em>In a market highly flawed</em></p>
<p>
	<em>By the grace of self declared Gods.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a realtor:</strong></p>
<p>
	<em>It boggles me how fast</em></p>
<p>
	<em>The land under me caved in</em></p>
<p>
	<em>Why all fingers pointed to me</em></p>
<p>
	<em>Not the chaps aired the bubble first?</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a jeweler:</strong></p>
<p>
	<em>Random walk of &nbsp;price of gold</em></p>
<p>
	<em>Sellers are at the hold</em></p>
<p>
	<em>Buyers feel over-sold.</em></p>
<p>
	<em>But the reality is never told.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From an investor:</strong></p>
<p>
	<em>Just look at the NEPSE index</em></p>
<p>
	<em>Leaves anyone always perplexed</em></p>
<p>
	<em>As market is bullish taking on risk</em></p>
<p>
	<em>Erring politics smashes it in brisk.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From an economist:</strong></p>
<p>
	<em>The affair of the state is iffy&nbsp;</em></p>
<p>
	<em>The guardian angels acting sneaky&nbsp;</em></p>
<p>
	<em>The mood is damp, almost piffy</em></p>
<p>
	<em>And economy stands fiscal cliffy.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a wage-earner:</strong></p>
<p>
	<em>No job, what else to mention?&nbsp;</em></p>
<p>
	<em>No relief from perennial privation,</em></p>
<p>
	<em>The minimum wage in the nation</em></p>
<p>
	<em>Is never tied to the rate of inflation.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a business leader:</strong></p>
<p>
	<em>We must certainly preface&nbsp;</em></p>
<p>
	<em>Taxing few honest and rich</em></p>
<p>
	<em>As the socialists these days profess</em></p>
<p>
	<em>Will not fill ravine of whopping deficit.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a social planner:</strong></p>
<p>
	<em>We are finding it absurd</em></p>
<p>
	<em>Plans we heard were never delivered</em></p>
<p>
	<em>But all the party comrades did prosper&nbsp;</em></p>
<p>
	<em>People left to have suicide preferred.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a political economist</strong></p>
<p>
	<em>When will parties exhibit maturity?</em></p>
<p>
	<em>Help create stable income and security</em></p>
<p>
	<em>So there could be a sense of certainty&nbsp;</em></p>
<p>
	<em>And markets start to behave with surety.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a planner:</strong></p>
<p>
	<em>Do policy makers really have any plan</em></p>
<p>
	<em>On jobs, inflation and population?</em></p>
<p>
	<em>If it isn&rsquo;t the leaders concern&nbsp;</em></p>
<p>
	<em>What if we lose our temper soon?</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>Finally, from a voter:</strong></p>
<p>
	<em>Our ears can&rsquo;t hear anymore sermon</em></p>
<p>
	<em>About job creation and developed nation.</em></p>
<p>
	<em>We need more apprenticeship skills</em></p>
<p>
	<em>That meets our needs and fixes growth ills.&nbsp;</em></p>
<p>
	<em>Is there anybody to listen?</em></p>
<div>
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-03-23',
			'modified' => '2013-10-21',
			'keywords' => '',
			'description' => 'Nepal’s business community has now ample time for rejuvenated aesthetic sense and cascading creativity as there is no business, no money and virtually no work as country reels under seemingly never-ending uncertainty.',
			'sortorder' => '769',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 4 => array(
		'Article' => array(
			'id' => '884',
			'article_category_id' => '45',
			'title' => 'Corporate Movements February 2013',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="color:#f00;"><strong><span style="font-size: 16px;">Newcomers</span></strong></span></p>
<p>
	<img align="left" alt="Jhalak Prasad Khanal" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/jhalak_corporate_movements_feb2013.jpg" style="margin: 0px 10px 0px 0px;" width="100" /></p>
<p>
	<strong>Jhalak Prasad Khanal</strong>has joined Vibor Bikas Bank Ltd as CEO after Ajay Ghimire, the founding CEO of the bank resigned last month. Earlier, Khanal was CEO of Siddhartha Development Bank.</p>
<p>
	 </p>
<p>
	 </p>
<p>
	 </p>
<p>
	<img align="left" alt="Ramesh Ghimire" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/ramesh_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /><strong>Ramesh Ghimire&nbsp;</strong>has joined Sarada Group (SPG Trading Pvt Ltd.) as Chief - Sales &amp; Marketing. Earlier, he was Head – Sales &amp; Marketing at Robin Export Import Marketing Pvt. Ltd.</p>
<p>
	 </p>
<p>
	 </p>
<p>
	 </p>
<p>
	<img align="left" alt="Sanjay Ballav Pant" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sanjay_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /><strong>Sanjay Ballav Pant&nbsp;</strong>has joined Standard Chartered Bank Limited as Head of Audit. Earlier, he was at Janata Bank as Head of Audit.&nbsp;</p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	 </p>
<p>
	 </p>
<p>
	<strong>Dr Khem Raj Bhetwal</strong> has joined Rising Development Bank Limited, Narayangarh as CEO.</p>
<p>
	 </p>
<p>
	<strong>Milan Mani Sharma </strong>has joined Ncell as Spokesperson. Earlier, he was Bureau Chief at The Republica English daily.</p>
<p>
	 </p>
<p>
	<img align="left" alt="Mani Ram Pokhrel" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/mani_corporate_movements_feb2013.jpg" style="margin: 0px 10px 0px 0px;" width="100" /></p>
<p>
	<strong>Mani Ram Pokharel&nbsp;</strong>has been appointed as Chief Executive Officer at Sambridhi Bikas Bank Ltd., Gajuri. Earlier he was Chief Business Officer at H &amp; B Development Bank Ltd. Kathmandu.</p>
<p>
	 </p>
<p>
	 </p>
<p>
	 </p>
<p>
	<strong style="font-size: 16px; color: rgb(255, 0, 0);">Newcomers at Sunny Distillery Pvt. Ltd.</strong></p>
<p>
	<strong><img align="left" alt="Alok Baral" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/alok_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /></strong></p>
<p>
	<strong>Alok Baral</strong> has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Govinda Kumar Shrestha" height="121" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/govinda_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Govinda Kumar Shrestha&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Luv Dhoj KC" height="120" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/luv_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Luv Dhoj KC&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Narayan Baral" height="120" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/narayan_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Narayan Baral&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Santosh Raj KC" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/santosh_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Santosh Raj KC&nbsp;</strong>has joined Sunny distillery Pvt Ltd as a Head-Trade &amp; Marketing, Earlier he was Sr. TSE at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Suman Maharjan" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/suman_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Suman Maharjan&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Robin Shrestha" height="122" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/robin_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Robin Shrestha&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sr. Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>Ramesh Shrestha&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<span style="color:#f00;"><span style="font-size: 16px;"><strong>Promotions</strong></span></span></p>
<p>
	<strong><img align="left" alt="Hari Sharma Neupane" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/hari_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /></strong></p>
<p>
	<strong>Hari Sharma Neupane</strong> has been promoted as Regional General Manager for Bottlers Nepal (Terai) Ltd. Earlier, he was Country Human Resource Manager in Bottlers Nepal Ltd.</p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Bala Ram Bista" height="121" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/bala_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Bala Ram Bista&nbsp;</strong>has been promoted as General Manager of Sunrise Bank Limited. Earlier, he was Deputy General Manager at Sunrise Bank’s head office.</p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Prakriti Tuladhar" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/prakriti_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Prakriti Tuladhar&nbsp;</strong>has been promoted as Finance Controller of Bottlers Nepal Limited. Earlier, she was Regional Finance Manager.&nbsp;</p>
<p>
	<strong><span style="font-size:16px;"><br />
	</span></strong></p>
<p>
	<strong><span style="font-size:16px;"><br />
	</span></strong></p>
<p>
	<strong><span style="font-size:16px;"><br />
	</span></strong></p>
<p>
	<strong><span style="font-size:16px;"><br />
	</span></strong></p>
<p>
	<strong><span style="font-size:16px;">Resignations</span></strong></p>
<p>
	<strong><img align="left" alt="Rabin Shrestha" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/rabin_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /></strong></p>
<p>
	<strong>Rabin Shrestha</strong> has resigned from Standard Chartered Bank Limited as the Head of Audit.</p>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>',
			'published' => true,
			'created' => '2013-03-16',
			'modified' => '2013-03-16',
			'keywords' => '',
			'description' => 'Corporate Movements for the month of February',
			'sortorder' => '768',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 5 => array(
		'Article' => array(
			'id' => '879',
			'article_category_id' => '57',
			'title' => 'Replica Of Brands',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Sajag Karki</strong></p>
<p>
	<img align="right" alt="Brand Talk, February 2013" height="674" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/brand_talk_feb2013.jpg" style="margin:0 0 0 10px;" width="220" /></p>
<p style="text-align: justify;">
	Nike, Reebok, Ray Ban, Gucci, Armani - you name it and there are replicas of every brand imaginable. There are many such replicas of brands available which people tend to purchase knowingly or unknowingly as the original one. One may think what difference would it make and who could identify the real one? Well, one might be right for all of them look the same at a glance. Also, the replicas give huge respite to those consumers who cannot afford the real offering of the brand. Hence, there is a huge market for this ranging from high quality replicas to the dirt-cheap ones. However, fake is fake and if one takes a closer look at it, one can easily identify and feel the difference. The fake ones have blurred logos, bad packaging, inferior materials which could even harm the user. People who are loyal to their brands and who know the essence of brand always buy the original products no matter how high the cost may be. It is not just about sporting a fake logo in the product, for them it’s about their association with the brand which gives them their identity. In western countries like in the US there are tougher laws that protect from replicating branded products. Intellectual property like movies and any other creative work also have copyrights.&nbsp;</p>
<p style="text-align: justify;">
	It’s no big secret that copies of brands are easily available in the market with varying degree of quality. Every now and then we hear about logos being copied from well known companies. This is a shame to the business and an insult to the creativity of the designer. Business law states that a registered trademark cannot be used by others especially if it is of a well-known one because of its familiarity. Even the prevailing Nepali law states that the same name cannot be used by two different companies. Similarly, similar names that could confuse a customer, too, should be avoided. A logo, say of McDonalds, cannot be copied as it is a well known icon. You can get a Ray Ban for as cheap as anything from a roadside vendor while the original product bought from its branded showroom costs ten times more. There is undoubtedly a significant market for consumers of such fake products, thanks to the “Made in China” brand which mass-produces copies of almost all big brands. As there are no strict rules followed by the concerned authorities regarding patent rights, nobody seems to care about it and people are happy with the replicas. “Do as Romans do in Rome” seems to have become the norm.&nbsp;</p>
<p style="text-align: justify;">
	Looking at the practical side of things, it wouldn’t have been possible for consumers of many developing countries to purchase branded products if it weren’t for the much affordable replicas. Hence, with high quality replicas people are able to quench their thirst for their favourite brands which would have otherwise not been feasible. Thousands of people use these products every day, thanks to the leverage of the original brands that has made it possible.&nbsp;</p>
<p style="">
	<span style="font-size:11px;">The Article is based on research and author’s practical experience as a marketing and advertising professional. He can be reached at sajag_karki@hotmail.com.</span></p>',
			'published' => true,
			'created' => '2013-03-16',
			'modified' => '2013-03-16',
			'keywords' => '',
			'description' => 'There are many such replicas of brands available which people 
tend to purchase knowingly or unknowingly as the original one.',
			'sortorder' => '767',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
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	(int) 6 => array(
		'Article' => array(
			'id' => '878',
			'article_category_id' => '41',
			'title' => 'Days Of Pure Portland Cement Gone Forever Time For PPC/PSP (Blended Cement)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Rajendra Prakash Manandhar</strong></p>
<p style="text-align: justify;">
	In 1984, I had just returned to Kathmandu after studying Cement Technology (1st batch) at CRI/NCB India. One of my friends asked me about the best type of cement which would last long and resist the polluted environment. We have seen in many toilets, drainpipes, roofs of buildings and other different places the cement plaster being deteriorated by urine, domestic waste, heat, polluted environment etc. I was once in a paper factory in Nepal. The factory had two concrete tanks, plastered with OPC cement. One tank was used for cold water and the other for warm water. The plaster in the warm water tank was cracked &amp; falling, but nothing had happened to the cold tank. At our homes, we notice water leaking and its spot spreading on the concrete ceiling. At many other places, we see hair cracks on the plastered wall. These are some of the common problems with OPC. The best way to minimize such problems is to use PPC/PSC instead of OPC.</p>
<p style="text-align: justify;">
	During the 9th International Congress on the Chemistry of Cement, New Delhi, India in 1992, one of the delegates had presented some video clips showing the difference between OPC &amp; PPC. The clips showed that two cement bars - one made of OPC and the other with PPC were kept immersed in water for 15 years. Both the bars had a steel rod inside. After 15 yrs, when the bars were opened, it was found that the steel rod in the PPC bar was fresh and Shinning like &nbsp;before, but the steel rod inside the OPC bar was found corroded and damaged. Thus the clips demonstrated the quality of PPC.</p>
<p style="text-align: justify;">
	AM Neville, an expert from world authority on cement &amp; concrete puts his view on PPC use: “The various cementitious materials- fly ash, silica fume, blast furnace slag, are here to stay. In their various ways and under various circumstances, they all have an important role to play in concrete, the days of Pure Portland Cement, once upon a time lauded by cement manufacturers have gone forever. Portland is vital ingredient, but the other cementitious materials are highly valuable”.</p>
<p style="text-align: justify;">
	A Pozzolanic cement consisting of ground clay and portland cement was described in 1909 by Potter, who stated that over 5000 tons of it were used in fresh water and seawater construction about that time. Later, this cement was known as Potter Cement. For many years up to about 1915, the Lafarge Company in France used burnt clay in to manufacture ‘undecomposable’ cement. A cement composed of 70 per cent Portland cement &amp; 30 percent burnt clay was used to build the Sennar Dam on the Blue Nile from 1919 to 1925. The same material (Oil-well Cements manufactured in Great Britain) was used in construction of the Bonneville Dam in the USA. Burnt clay, an excellent artificial Pozzolana, is produced by burning suitable clay or shale at a temperature of 600° to 900° and above. Artifical pozzolanas &nbsp;are burnt clays and shales, spent oil shales, burnt maize/ rice husks, burnt moler and pulverized fuel ‘fly ash’ whereas volcanic deposits are natural Pozzolana.</p>
<p>
	<strong>Effect of pozzolana addition on hydration and performance of PSC</strong></p>
<p style="text-align: justify;">
	Pozzolana was added (5-25% by weight) to the binary blends (OPC + Slag) and the resulting ternary blends were subjected to hydration and the performance was studied. The results indicated that addition of Pozzolana up to 10 per cent does not affect the properties of the binary system significations. It has also been observed that the ternary blends show better sulphate resistance compared to the binary blends.&nbsp;</p>
<p style="text-align: justify;">
	The production and use of blended cement, especially PPC, has gradually increased worldwide in recent years. Its larger use in different countries is an indicator of its acceptability as well as suitability for various types of construction. Industrial wastes or the by–product ‘fly ash’ from thermal power stations and slag from steel plants are used for making blended cements such as Portland Pozzolana Cement (PPC) and Portlant Slag Cement (PSC). More than 50 per cent of the blended cements produced is PPC today. Blended cements such as PPC and PSC offer unique advantages to the concrete. In other words, PPC is better than OPC in terms of quality, and strength, and has &nbsp;a longer life than OPC. We could compare these unique characters of PPC with the antibodies in the human body that protect from different diseases.&nbsp;</p>
<p>
	<strong>OPC is made by grinding Clinker and Gypsum&nbsp;</strong></p>
<p style="text-align: justify;">
	One ton of clinker requires approx 1.5 tons of limestone whose reserves are limited. PPC/PSC is manufactured by grinding clinker with fly ash/slag and gypsum or blending OPC with fly ash and slag. Thus, limestone consumption can be reduced by producing PPC/PSC.</p>
<p>
	OPC:<span class="Apple-tab-span" style="white-space: pre;"> </span>Clinker 95%+ Gypsum 5%</p>
<p>
	PPC:<span class="Apple-tab-span" style="white-space:pre"> </span>Clinker 70% + Gypsum 5% + Fly ash 25%</p>
<p>
	PSC:<span class="Apple-tab-span" style="white-space:pre"> </span>Clinker 45% + Gypsum 5% + Slag 50%, (depending upon quality of Slag)&nbsp;</p>
<p style="text-align: justify;">
	Nepal Bureau of Standard has formulated the standard for PPC and PSC. PPC/PSC produced has to meet the quality parameters laid down for specific cement type. Generally engineers/ consultant/ and builders contractors decide on the type of cement to be used in the construction of houses, building roads, water tanks etc. Design parameter, types of construction, ground condition, durability requirement and environmental conditions are important factors while selecting the appropriate type of cement for any application.</p>
<p>
	<strong>Extra Qualities Benefit of PPC</strong></p>
<p style="text-align: justify;">
	PPC provides numerous environmental benefits such as conservation of limestone, reduction in green house gases in cement manufacturing and utilization of industrial wastes/ by-products &nbsp;- fly ash. It thus increases production of cement in the country. The government can take more benefit by collecting more tax on technical grounds and economics. There is a sound case for use of PPC in concrete due to:</p>
<ul>
	<li>
		Water resistance due to high density concrete</li>
	<li>
		Improves workability of concrete&nbsp;</li>
	<li>
		Reduces bleeding&nbsp;</li>
	<li>
		Reduces heat of hydration preventing cracks</li>
	<li>
		No need to add any plasticizer like cement silica.&nbsp;</li>
	<li>
		Higher bang ultimate strength</li>
	<li>
		Reduces permeability of concrete enhanced&nbsp;</li>
	<li>
		Gives strength, has higher durability than OPC</li>
	<li>
		Higher resistance to sulphate and chloride&nbsp;</li>
	<li>
		Better resistance to alkali – aggregate reaction&nbsp;</li>
	<li>
		Reduces leaching calcium hydroxide&nbsp;</li>
	<li>
		Low volume (shrinkage) change preventing cracks.</li>
</ul>
<p style="text-align: justify;">
	Hydration of Ordinary Portland Cement (OPC): Hydration is the chemical process by which slilicates and aluminates of the cement clinker, when mixed with water, form hydrated compounds and during the course of reaction produce Calcium Hydroxide and Calcium Silicate Hydrate as shown in the following chemical equation:</p>
<p>
	<strong>Cement + Water→C-S-H + Ca (OH) 2</strong></p>
<p style="text-align: justify;">
	The compound Ca (OH) 2 being easily soluble in water leaches out of the concrete surface. This leached Ca (OH)2 deposits on the surface as a coating layer cause deterioration of the concrete.</p>
<p>
	<strong>Hydration of Portland Pozzolana Cement /Portland Slag Cement: &nbsp;</strong></p>
<p style="text-align: justify;">
	When water is added to PPC/PSC, hydration of OPC constituents occurs first. This is known as primary hydration. During this process, the calcium silicates of OPC reacts with water to produce Calcium Silicate Hydrate gel and Calcium Hydroxide. Subsequently, fly-ash / slag present in cement hydrate in presence of Ca (OH) 2 produced during OPC hydration, produces further Calcium Silicate Hydrates. This process is known as secondary hydration. This makes the hydrated silicate gel structure of PPC/PSC more denser and contributes to higher durability of the concrete. But in OPC hydration, the liberated Ca(OH)2 forms a coating layer on the concrete, which is weak and is therefore removed by external pollutants/environment causing deterioration of the concrete. But this Ca(OH)2 is utilized in PPC/PSC in formation of C-S-H (II) which is &nbsp;stronger than C-S-H(I) thus reinforcing the original silicate gel (I) to produce a much denser gel structure which contributes to a higher degree of strength and durability. More and more Ca (OH) 2 is &nbsp;absorbed preventing formation of coating as shown in the following chemical equations: &nbsp;&nbsp;</p>
<p>
	<strong>Clinker + Water → C-S-H (I) + Ca (OH) 2</strong></p>
<p>
	<strong>Ca (OH)2 + Fly Ash/ Slag → C-S-H (II)</strong></p>
<p>
	Concrete is not a structural material by itself but it slowly evolves into a structural material in four &nbsp;stages which are: &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;</p>
<p>
	<strong>1-Plastic, 2- Stiffening (setting), 3- Hardening, 4- Enduring</strong></p>
<p style="text-align: justify;">
	<img alt="Cement, Sectoral February 2013" height="276" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_rajendra_prakash_feb2013.jpg" width="580" /></p>
<p style="text-align: justify;">
	In the plastic stage of concrete, the fineness and initial setting time is important. In the stiffening stage, final setting time is important. Tri–Calcium aluminate (C3A) of cement helps in this. In the hardening stage, C3S, C2S, strength and fineness are of vital importance. But the most important stage for durability of the concrete structure is the enduring stage. In this stage, the high quality cement parameters balanced physical and chemical parameters, high strength, low impurities, high soundness, optimum fineness etc can only contribute to the durability and high performance of the concrete structure. Today’s needs are not only high 28-day strength of cement but also high quality cement with (TOTAL QUALITY ATTRIBUTS) EXTRA QUALITY BENEFITS other than strength. These benefits are the resultant products of best clinker &amp; fly ash/ slag of high quality and gypsum in desired proportion to achieve high ultimate physical/ chemical properties. There are a number of parameters to be controlled as inputs during clinker production. Among them, correct proportioning of oxides CaO, SiO2, Al2O3, Fe2O3 which is termed as raw mix design and proportioning raw materials is most important. The proportioning C3S, C2S, C3A, C4AF are fixed after raw mix design. The preferable ranges of these compounds are 45-55, 20-30, 5-8, 8-12 etc. Strict quality control of raw materials, cement, process control are to be carried out. In the same way, the blending material fly ash should be according to the parameter given by Nepal Standard NS285.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Application of PPC&nbsp;</strong></p>
<p style="text-align: justify;">
	PPC can be used in almost all kinds of construction where OPC is used. For example, general building construction (residential, commercial, and industrial), bridges, flyovers, culverts, dams, irrigation projects, water retaining structures, ports &amp; harbours’ etc - except where high early strength is critical. Taking into account the special properties of concrete made from PPC, there are specific types of job where the use of PPC would be particularly advantageous. These are:</p>
<ul>
	<li>
		Mass concrete used for dams, bridges, piers etc where low heat of hydration is desirable</li>
	<li>
		In hydraulic structures where water tightness is desired</li>
	<li>
		Concrete in saline environment such as pole foundation works etc</li>
	<li>
		In marine structure where impermeability and resistance to attack by sea water are important</li>
	<li>
		In sewers and other structure subject to acidic or sulphate attack</li>
	<li>
		In construction of swimming pools</li>
	<li>
		In construction of stadia where durability and ultimate &nbsp;high strength is &nbsp;required</li>
</ul>
<p style="text-align: justify;">
	Some construction engineers believe that the concrete made with PPC needs longer curing than OPC concrete. Actually, however, curing is required for all types of cement as long as possible. Some paints the concrete with oil, others cover it. Anyway the water mixed during casting the concrete is to preserve/save from evaporation due to atmospheric temperature.</p>
<div>
	<img alt="Sectoral February 2013" height="189" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_rajendra_prakash_feb2013(2).jpg" width="580" /></div>
<div>
	 </div>
<div>
	<div style="text-align: justify;">
		In major constructions, consumers/users hesitate to use Nepali cement except for a few brands. In order to substitute the import of cement, cement manufacturers have to be honest in qualities, attributes or extra quality benefits. Also, the Cement Association of Nepal has to commit fully to manufacture high quality and healthy cement which may have a long life and may also compete with the imported cement. Hence, the Association has to play a significant role in promoting PPC and highlight its usefulness. It can create awareness in the government, builders, users, contractors, construction engineers etc. That will also help to dispel the apprehension with regards to using PPC for construction works.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		PPC offers several unique advantages to the concrete and has gained universal acceptance. This article gives information on different aspects of PPC such as historical facts, its short chemistry, production, applications, and advantages. The concerned government authorities, designers etc are required to make a conscious choice between OPC and PPC according to the application and requirement and recommend using PPC in all construction works. Construction needs are durability against increased pollution level and environment effects.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		In some plants in Nepal, the clinker produced from a vertical shaft kiln (VSK) is mixed with rotary kiln clinker to produce cement. In one clinker plant in Nepal, imported cement is mixed during cement production. Also we have seen/heard that imported or other cements are mixed with Nepali (local) cement in construction. A cement plant owner in western Nepal has used imported cement to build his own building. A proper raw mix design and proportioning raw materials produces the best cement clinker, and there is no need to mix other clinker/cement to increase the so-called “SHAKTI” (strength) of cement.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Finally, for manufacturing PPC, clinker quality is of primary importance. To avoid illusion over VSK clinker Quality and to boost the morale of VSK owner and interested potential parties, here are some compressive strength data which are being received from the trial production of a modern VSK 500 ton per day plant of Rolpa Cement (P) Ltd. It is indeed a surprising data, not easily believable. A right “Raw Mix Design” (For VSK/ rotary kiln) is a manufacturing prescription to produce the best clinker which contributes in durability of PPC concrete after mixing with Pozzolana (fly ash). It is also a fact that 60 per cent of cement in China is produced from VSK. Productivity is a state of mind whereas making a Megh Quality Clinker is an art.</div>
	<div style="text-align: justify;">
		 </div>
	<div>
		<span style="font-size:11px;">The author has worked at Himal Cement, Jagadamba Cement, Siddhartha Cement, Cosmos Cement. At present, he is associated with Rolpa Cement (P) Ltd as Senior QC/Production Manager and can be contacted at rajendramdr@yahoo.com.&nbsp;</span></div>
</div>
<div style="text-align: justify;">
	 </div>',
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			'description' => 'PPC offers several unique advantages to the concrete and has gained universal acceptance. This article gives information on different aspects of PPC such as historical facts, its short chemistry, production, applications, and advantages.',
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			'article_category_id' => '41',
			'title' => 'Responsible Business Endeavour',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong style="text-align: justify;">By Rajendra Desai</strong></p>
<p style="text-align: justify;">
	Nepal is bestowed with diversity in nature, religion, culture and people. This beautiful Himalayan country has witnessed a constantly changing social and economic dynamics over the years. In the last two decades, Nepal has made significant achievements in the national economy and the people’s standard of living.</p>
<p style="text-align: justify;">
	Statistics show that the poverty in Nepal has decreased from 42 per cent in 1995 to 26 per cent in 2011. Similarly, 12 per cent of the GDP is contributed by remittance. The country’s half population comprises of youth, that is energetic and young. Youth is the group which is considered the most productive among all age groups. These youths not only contribute to the society and the economy but also act as the decider of consuming new and trendy products and services.&nbsp;</p>
<p style="text-align: justify;">
	It’s a pleasure for a company, to be a partner in a country like Nepal and work with the people here. So, Kansai Nerolac Paints Ltd (KNPL), a subsidiary of Kansai Paints Company Ltd, Japan, commenced its operations in Nepal under the brand name Kansai Paints Nepal Pvt Ltd. Owing to Nepal’s progressive economy, Kansai Nerolac Paints Ltd (KNPL) acquired 68 per cent stake in Nepal Shalimar last year. KNPL has decided to utilise the manufacturing set up of Nepal Shalimar to manufacture Nerolac range of products which are imported currently in Nepal itself.&nbsp;</p>
<p style="text-align: justify;">
	The enhanced economic capabilities of the Nepali people have opened up tremendous market opportunities not only for paints but also for any other FMCG. Similarly, the young population makes a market with prospects for deeper penetration, and demand for new age products and services. The Nepali market has come up with scope for higher consumption along with increased attraction towards health-friendly products such as low or zero VOC paints.</p>
<p style="text-align: justify;">
	KNPL feels proud to have a presence in Nepal. Kansai Paints Company Ltd, Japan, having presence in about 17 countries, believes in transferring the expertise and superior range of products to the consumers in Nepal. This entry promises to provide products that are not only best in performance, but also safe and have minimum environmental impacts. Kansai Paints is the market leader in Japan and the eighth largest paint company of the world. Similarly, Kansai Nerolac in India is the second largest paint company of India.</p>
<p style="text-align: justify;">
	As of now, Nerolac in India has achieved a noteworthy success in the market. Statistics show that out of every 10 passenger cars, six are painted with products from Nerolac. Similarly, seven out of 10 premium cars, seven out of 10 utility vehicles, eight out of 10 auto rickshaws, eight out of 10 tractors, seven out of 10 scooters and seven out of 10 motorcycles in India are made beautiful with Kansai Nerolac paints.</p>
<p style="text-align: justify;">
	The company manufactures a diverse range of products &nbsp;- from decorative coatings for homes, offices, hospitals and hotels to sophisticated industrial coatings. The company believes in the concept of healthy homes. Kansai Nerolac paints are top notch products that do not have adverse impacts on health. They have antifungal traits, contain zero VOC, and are lead free and odourless. The company’s low VOC range of paints conforms to the strictest of International standards and has the NTH certification which compiles to a Green Seal -11 approval. Green Seal is an independent international agency which certifies green and environment-friendly products.</p>
<p style="text-align: justify;">
	Nerolac Impressions 24 Carat is one such Premium Luxury Emulsion that ensures a smooth velvety finish with sheen, excellent flow and brushability, washability and is stain-resistant. Along with it, the company produces award winning products to cater to every segment in the market.</p>
<p style="text-align: justify;">
	In today’s’ challenging marketing space, it is beyond imagination to succeed in the market without using the new media and the latest technologies to reach out to the targeted consumers. Our exclusive outlets and showrooms offer the customers an easy opportunity to choose and select the paints and colours of their choice. Likewise, the company has focused on 360 degree marketing by using various media such as hoardings, TV, Radio, Vehicles, Movie Theatres and Print Media.&nbsp;</p>
<p style="text-align: justify;">
	With a belief in inclusive growth, the company has always kept the contributions that can be made to the society at the centre while working anywhere in the world. Any business or economic growth should fuel the betterment of the society and people.</p>
<p style="text-align: justify;">
	<span style="font-size:11px;">The writer is the Country Head of Kansai Paints Nepal Limited.</span></p>',
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		'Article' => array(
			'id' => '875',
			'article_category_id' => '42',
			'title' => 'Politics Is Investors’ Focus',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Bikram Chitrakar</strong></p>
<p style="text-align: justify;">
	Secondary market slipped off the trend as political dealings and uncertainty cooled down investor’s sentiment. The benchmark Nepse index receded 19.73 points or 3.86% to settle at 510.88 while the session’s high was on 3rd Jan with 533.46 and lowest was on 20th Jan with 508.23.</p>
<p style="text-align: justify;">
	Growing political ambiguity and actions of opposition parties to hit the road with protest programmes against the government pulled the confidence level of the investors in the first month of 2013. The presence of Investors presence was discouraged by sequence of these events. Decrease in the turnover suggests the battered confidence of the investors.</p>
<p style="text-align: justify;">
	Market actions, as the second quarter reports of the listed companies started coming, indicated negative evaluation from the investors of these reports. This was particularly so of the banking and financial institutions.&nbsp;</p>
<p style="text-align: justify;">
	Securities Board of Nepal (SEBON) has issued directives to check the money laundering. This Anti-Money Laundering and Counter-terrorist Financial Directive 2069 provides that securities business person should inform the authorities if the daily transaction of an individual and firm exceeds Rs 1 million. Similarly, other capital market participants are also ordered to keep proper records so as to detect if the source of the investment is suspicious.&nbsp;</p>
<p style="text-align: justify;">
	Performance by Sector</p>
<p style="text-align: justify;">
	Commercial banking sector with dominant volume of trade in Nepal stock exchange descended 29.40 points or 5.98% to rest at 491.48. Hydropower sector skid 62.29 points or 6.33% to 983.9. Others sector lost 15.27 points along with 13.54% down in development bank to 763.65 and 245.94 respectively. Similarly, hydropower sector plunged 62.29 points or 6.33% to rest at 983.9 while finance sector went downhill 9.53% to 250.51. However hotels sector added 84.80 points or 12.51% to close at 677.8. Insurance sub-index gained 70.68 points or 8.67% to 815.24. Manufacturing sector moved higher by 9.04 points to rest at 860.13.</p>
<p style="text-align: justify;">
	Sensitive index that measures the performance of 133 blue chips scrip at secondary market cut off 1.80 points or 1.35% to 133.52 while the float index calculated on the basis of real transaction descended 1.30 points or 3.73% to 34.83. Total of Rs. 1,780,346,071 turnover was realized during the review period from 6,228,761 units of shares traded via 23354 transactions.</p>
<p style="text-align: justify;">
	The accompanying figure depicts the sector-wise distribution based on the total volume of trade. As usual, commercial banking sector accounted for 77.39% of total trade. Hydropower sector occupied 6.86% while development bank grabbed 5.87% and remaining sectors made up for the rest.</p>
<p style="text-align: justify;">
	Technically, the Simple Moving Average (SMA) showed shabby conditions in the short term as Nepse Index surged above the 30 Days SMA. However, in long term the 200 Days SMA seems helpless despite &nbsp;roaring movements. Key resistance test at the level of 510 can determine the further movement and new target level.&nbsp;</p>
<p style="text-align: justify;">
	<img alt="Stock Taking, Bikram Chitrakar" height="484" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/stocktaking_feb2013.jpg" style="font-size: 11px;" width="403" /><img alt="Stock Taking, Bikram Chitrakar" height="409" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/stocktaking_feb2013(2).jpg" style="font-size: 11px;" width="419" /><img alt="Stock Taking, Bikram Chitrakar" height="412" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/stocktaking_feb2013(3).jpg" style="font-size: 11px;" width="392" /></p>
<p style="text-align: justify;">
	<span style="font-size: 11px;">Chitrakar is a Stock Analyst with Jamb Technologies Pvt Ltd.</span></p>',
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the government pulled the confidence level of the investors in the first month of 2013.',
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			'id' => '874',
			'article_category_id' => '40',
			'title' => 'Insuring Nepal’s Aviation Risks',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Sushila Budhathoki</strong></p>
<p>
	<img alt="Cover Story February 2013" height="329" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_main_feb2013.jpg" width="550" /></p>
<p style="text-align: justify;">
	<span style="text-align: justify;">“The higher the risk, the higher the potential return,” goes a popular saying. The economic logic is however that the profit is higher when risks are minimized. And there comes the insurance business to help the other businesses to reduce risks. In the process, both insurance companies and their business clients become happy. But this does not seem to be the case in aviation portfolio of Nepali insurance companies. &nbsp;Although aviation insurance is a high profile business in Nepal, it happens to be one of the weakest portfolios for most insurance companies in terms of profit. The aviation insurance business looks good in terms of premium collection but there is hardly any profit.&nbsp;</span></p>
<p style="text-align: justify;">
	The reason is: the insurance companies providing aviation insurance have to pay a high amount of premium – more than 99 per cent at times - to the reinsurance companies abroad. In fact, the companies are sustaining their aviation insurance business from the commission they get for the premiums paid to the foreign reinsurers. Mahendra Shrestha, Managing Director of Himalayan General Insurance, says, “Whether it’s profit or loss, it goes to the reinsurance companies. We (local insurance companies) are just the intermediaries. And if we fail to reinsure, we cannot sustain the operation. So, we have to depend on reinsurance companies abroad. There is no other choice.”According to Shrestha, some insurance companies are paying up to 99.97 per cent of the premiums collected to the reinsurance companies. “It has been a non-profit business for even most of the reinsurers who have only two choices - walk away or keep doing business at high premium rates to recover previous losses,” he adds.&nbsp;</p>
<p style="text-align: justify;">
	A three-year data (From 2009/10- 2011/12) of Beema Samiti, too, depicts the pathetic condition of Nepali insurance companies in aviation portfolio. During this period, only a few companies could make some profits which however, is paltry (See table 1). Rameshwor Thapa, President of Airlines Operators Association of Nepal (AOAN), says, “Since this is a highly regulated and risky business, there can be loss or profit and the clients also contribute in both these factors.” There are altogether 25 insurance companies including 17 non-life insurance companies in Nepal. Among the non-life insurance companies, seven &nbsp;deal in aviation insurance (See table 2). Nepal insurance Company Ltd and Neco Insurance which were doing aviation insurance previously have pulled their hands from aviation portfolio now.</p>
<p style="text-align: justify;">
	Lack of domestic reinsurance companies and low retention capacity of Nepali insurance companies has resulted in huge amount going abroad as remittance premium. The Nepali airlines are paying around USD 8-9 million premiums to the insurers yearly. The Nepali insurance companies retain 0.5 per cent of this and send the rest to the reinsurance companies.&nbsp;</p>
<p style="text-align: justify;">
	Dip Prakash Panday, CEO of Shikhar Insurance, says, “The way our aviation business has been exposed, we cannot afford the risks. Who will bear the risk if some big loss occurs?” Panday asks, adding, “We are not sending money, we are transferring the risk. The &nbsp;companies are still in profit because the money is flowing in from the reinsurers abroad as commissions. Since they agreed to take the risk, they bear the loss as well, when it happens.” Shikhar Insurance, &nbsp;one of the major players of Nepal’s aviation insurance business earned Rs 10.5 million as reinsurance commissions last year.&nbsp;</p>
<div style="padding:10px; background:#f4f3e6;">
	<strong>Nepal’s First Aviation Insurance Summit&nbsp;</strong></div>
<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
	<img align="left" alt="Aviation Insurance Summit" height="173" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_main_feb2013(2).jpg" style="margin:0 10px 0 0;" width="300" />Held In January, an ‘Aviation Insurance Summit’ was held in Kathmandu where all the stakeholders including the reinsurance companies participated. The summit brought about a fresh wave of optimism in Nepal’s aviation insurance sector. Mahendra Shrestha, MD of Himalayan Insurance, who was also in the organizing committee says, “The Summit brought local stakeholders, including operators, regulatory bodies, insurance companies and banks as well as key players in the regional and global aviation insurance industry including underwriters and reinsurance brokers under one roof. It gave the Nepali stakeholders a global perspective on our current situation as well as access to the expertise of visiting delegates.” He further adds, “After the summit, all the delegates expressed that they found it to be a helpful introduction to the Nepal aviation insurance market and that it helped them take better decisions about supporting it.”</div>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	Airlines insure their fleet according to the value of the aircraft. The reinsurers charge different premiums depending on the type of aircraft, experience of the pilots and engineers, infrastructure, equipment, management facilities and age and the value of the aircraft. Aviation insurance coverage is categorized into the following types: Hull, War, Allied, Perils Insurance, Third Party Liability Insurance, In-flight insurance, Passenger liability insurance etc. The passengers are insured at USD 20,000 each and crew member at USD 40,000 each while the coverage of other categories like hull, war etc varies from airline to airline. According to the operators, the reinsurance market in Nepal was dependent on the India for a long time since it started in the early 1960s. In recent times however, as both the risk and the premium witnessed a constant upsurge, the market shifted to Europe. Indian Insurance companies like GIC, ICICI Lombard, United India and IFFCO-TOKIO were the main reinsurance partners of insurance companies previously, but the number of Indian reinsurers who do reinsurance business in Nepal has decreased over the past few years. &nbsp;</p>
<p style="text-align: justify;">
	<strong>High Premium</strong></p>
<p style="text-align: justify;">
	After the 9/11 terrorist attack in the US in 2001, where two planes - American Airlines Flight 11 and United Airlines Flight 175 - were crashed into the North and South Trade Towers, the aviation sector saw a sudden rise in premiums globally. After the incident, most of the reinsurers increased their premium rates worldwide while others loaded the premium according to the risk factors. Nepali airliners are charged up to 12 per cent premium now while airliners generally pay 4-6 per cent internationally. Previously, the premium rate for Nepal was up to 7 per cent. Thapa says, “We used to pay USD 30,000 as &nbsp;premium as early as six years ago. Now we have to pay USD 300,000 for the same aircraft – 10 times more than the premium rates in the past.” Currently, Tara Air and Agni Air are paying up to 12 per cent premium. However, Panday says that the premium rates differ from airline to airline. He says, “It is not that all airlines have to pay a high premium. The premiums of some airliners are as low as 1.5 per cent.”&nbsp;</p>
<p style="text-align: justify;">
	There are many conditions when the reinsurers charge high premium. They charge more if they discover that the airliners have had an air accident in the last five years or have a high frequency of making claims. Prem Bahadur Maharjan, Chaiman of Rastriya Beema Sansthan (RBS), says, “The risk factor is not within our control and that needs to be reinsured with other international insurance companies outside the country.” Decrease in the number of airlines due to the crashes and age of the aircraft lead to also high premiums. Prof Dr Fatta Bahadur KC, Chairman of Beema Samiti, says, “We had had the normal rates. But when one reinsurer increases the premium rate, others follow suit. Now the weakest airliners have to pay dearly while others too are paying high charges.”&nbsp;</p>
<p style="text-align: justify;">
	As Nepali aviation insurance is serviced by the international reinsurance market, rising premium rates is affecting the sustainability of the business. As the risk increases the market becomes limited and the airliners have no choice but to accept the high premium rates. Kewal Krishna Shrestha, CEO of Everest Insurance says, “The aviation business is running though the reinsurers are charging up to 12 per cent. But what if they charge 20-25 per cent? I don’t think the aviation industry in Nepal could bear such high premiums.” He says the environment in future could be such that even the high premium might not draw the reinsurers into confidence because of the high risk involved in the Nepali aviation and that the reinsurers could add more clauses which could affect the overall aviation business in Nepal.&nbsp;</p>
<p style="text-align: justify;">
	The reinsurers, however, insist that the premium is always determined by the risks anywhere in the world. According to Dr Pronab Sen, CEO of Nepal operation of National Insurance Company, the government-owned insurance company of India, the premium is based on the past losses. He says, “If you see the statistics, almost every year there is a crash and sometimes, there are 2 crashes in Nepal. And the rate of premium is governed by the reinsurance market. Because of the air accidents, some of the reinsurers were hesitant to do business in Nepal.” Sen adds, “We have our own retention limit. Depending on our financial strength, we retain a very small portion of the risk and reinsure the rest with other reinsurance companies. This is a worldwide practice in the insurance business. It depends on portfolio and risks. Sometime we retain 20 to 80 per cent- sometimes 90- depending on the risks.” Doug Horne, Marketing and Business Development Manager at Airclaims- A UK-based leading reinsurance company, shares a similar experience. He says, “The present level of risk is too high but there are enough insurers willing to support the market, albeit currently at a higher cost than in some other places.”&nbsp;</p>
<div>
	<img alt="Aviation Insurance Business" height="298" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_main_feb2013(3).jpg" width="550" /></div>
<div>
	<div>
		<strong>The Risky Rural</strong></div>
	<div>
		 </div>
	<div style="text-align: justify;">
		The airlines which fly mostly in the hilly region are among the high premium paying ones. On the trunk routes, the premium is only around 3-4 per cent and in the case of STOL (Short Take Off and Landing) runways, the premium rate varies from a minimum 3 to a maximum 12 per cent. Due to the risk in rural areas, the reinsurers load more premiums on them. According to the operators, the aviation insurance started becoming a loss-making business for reinsurers since 2009. There have been eight aviation crashes, killing 114 people in the past six years. Almost all these accidents took place in the hilly region. Of them, six deadly accidents occurred in 2011 and 2012 alone, excluding four helicopter crashes of which a couple were fatal. Being a mountainous country, the weather, terrain and the high altitude in the hilly region are the major challenges for the aviation sector. Poorly managed and small airfields, unpaved runways and lack of manpower to co-ordinate pilots in these areas are considered the reasons behind the air crashes. An aviation expert, requesting anonymity, says, “We need pilots who are well trained and have a sound understanding of weather pattern, especially clouds.”&nbsp;</div>
	<div style="text-align: justify;">
		The emergence of private airliners in domestic air transport started in 1992 when Nepal adopted a liberal aviation policy. And in 2002, expansion of the International Terminal Building at Tribhuwan International Airport (TIA) and the construction of a new Air Cargo Complex made it convenient for the international airliners to operate in Nepal. This increased the flow of international tourists in Nepal. Increased tourist arrivals, in turn, have led to a growth in the aviation business and aviation insurance business too. This is why the aviation insurance business has grown over &nbsp;the past decade. There are 10 fixed-wing airplane operators and five helicopter operators in Nepal at present. The Civil Aviation Report 2011-2012 also depicts a steady growth in the aviation sector with increasing flight movement.&nbsp;</div>
	<div style="text-align: justify;">
		There are altogether 54 airports in Nepal. Among them, 34 are operational at present. Among the running airports, eight are on the trunk routes- while the rest are in the remote areas. Thapa says, “Trunk route operators have fewer problems in comparison to the STOL route operators mainly because of the high hills and high altitude. There have been many instances of chopper accidents on the STOL routes.” Airports in Pokhara, Biratnagar, Janakpur, Nepalgunj, Bhairahawa, Kathamandu, Dhangadi and Chandragadhi are on the trunk route. The domestic aircraft which fly in trunk route have a minimum seat capacity of 15 and a maximum of 72 while the planes in STOL routes have minimum seat capacity of 9. &nbsp;Big aircraft fly on the trunk routes while the small ones &nbsp;are considered best for the hilly region. Suresh Acharya, Joint Secretary at Ministry of Tourism and Civil Aviation (MOTCA) says, “There is a high risk on the STOL route especially for twin-otters. There is an urgency to enhance the capacity of the pilots who fly on the STOL routes. ”</div>
</div>
<div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>The aviation insurance cover</strong></div>
	<ul>
		<li style="text-align: justify;">
			Hull All Risk (Loss or Damage to the Aircraft)</li>
		<li style="text-align: justify;">
			Hull War</li>
		<li style="text-align: justify;">
			Passenger and Cargo Legal Liability</li>
		<li style="text-align: justify;">
			Crew Personal Accident</li>
		<li style="text-align: justify;">
			Pilots Loss of License</li>
		<li style="text-align: justify;">
			Third Party Liability</li>
	</ul>
	<div>
		<div style="text-align: justify;">
			<strong>Bad Image</strong></div>
		<div style="text-align: justify;">
			 </div>
		<div style="text-align: justify;">
			The frequency of accidents has created fear in the reinsurers’ minds, pushing Nepal into a ‘risk zone’. These accidents could have negative impact on the country’s tourism if the casualties included many foreigners. Nepali aviation sector had gone through similar hard times in the past too. Ten years ago when Maoist combatants set ablaze Fishtail Air’s helicopter in western Nepal, domestic airliners got notification from the reinsurance companies abroad that they won’t compensate the losses in case of any terrorist attack. &nbsp;Panday says, “Fear is a very dangerous thing. Our terrains are difficult, which has sent a wrong perception. Similarly, loss is also a perception and can be changed. All we need is 3 to 4 years of good loss ratio.”</div>
		<div style="text-align: justify;">
			The domestic airlines are often accused of poor maintenance of their airplanes and the pilots of not following the standard operation procedures. Similarly, it is said that there is often a lack of co-ordination between the&nbsp;captain and co-pilots. Acharya says, “According to our findings, human factor is responsible for 80- 85 per cent accidents. The remaining 15 per cent accidents are caused by failure of machine, bad weather etc. It seems that the pilots are not very efficient at taking the right decision in time of emergency or they do not make the maximum use of the cock-pit. Lack of co-ordination between pilots and co-pilots and no guidance from the ground people when the plane is flying is common.”</div>
	</div>
</div>
<div style="text-align: justify;">
	<img alt="Income and Expences" height="216" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_main_feb2013(4).jpg" width="579" /></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<div style="">
		Lack of consultation between the government and insurance authorities for resolving the key issues of the aviation sector has made the aviation business worse. Acharya says, “The government is unaware about the kind of image the reinsurance companies are making of Nepal. They should have believed the government’s aviation report.” He further adds, “We need to develop that kind of mechanism. We are ready to help whenever they need any support from the government. All we need to do is build that kind of mechanism where the government as well as the insurance companies could sort out the problems together.”&nbsp;</div>
	<div style="">
		The use of ‘old’ aircraft by some domestic airlines has only added to create a negative image of the Nepali aviation, though people in the industry and experts do not call it a problem. According to a Nepali scholar who has a Master’s degree in Aeronautical Engineering from Poland, not following the standard operation procedures by the aviation operators is the major drawback in Nepal’s aviation. He says, “It does not matter whether the plane is old or new; what matters is its scheduled as well as need-based maintenance.” Lack of distance measuring equipment (DME) at airports is another shortcoming for the country’s aviation sector. He adds, “Towers are more helpful in tracking the aircraft in the right way. However, most of our airports rely on windsocks &nbsp;to indicate wind direction and the relative wind speed. This is risky. Sometimes, there is no one in &nbsp;the towers at the airports to coordinate with the flying pilots.”&nbsp;</div>
	<div style="">
		An aircraft is generally considered safe until the deadline given by its manufacturer. There is a manual for every air plane and manual for flying hours including number of flights a day. The Beema Samiti issues, renews, dismisses the licenses of insurance companies, insurance surveyors and insurance agents. It has also been “working for the development, management and regulation of the insurance business in the country.” The BS 2067 Report of Beema Samiti has also recognized scarcity of skilled manpower, unhealthy competition among insurance companies and lack of reinsurance companies within the country as the major problems of the aviation insurance business. However, the Beema Samiti has not been able to address these problems properly. Maharjan says, “There has to be a strict monitoring mechanism for air traffic discipline and safety education to the people involved in the aviation business. Pilots should also be alerted against taking any sort of risks. Aviation safety is not related to money only; it’s about lives of people.”</div>
	<div>
		 </div>
</div>
<div style="padding:10px; background:#f4f3e6;">
	<strong>Utilizing Civil Aviation Academy&nbsp;</strong></div>
<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
	If given due importance, the Civil Aviation Academy (CAA), the only training center for aviation related training in Nepal, could be beneficial to the whole aviation industry. CAA conducts basic, refresher, induction and recurrent trainings related to Air Traffic Control, Aviation Security, Fire fighting and rescue, CNS and others based on quality curriculum. Though it is the only state’s approved aviation training organization (ATO) in Nepal, the private sectors have failed to utilize them properly. Mahendra S. Rawal, Chief of CAA says, “Though we are also in the developing phase, we can still work together to develop expertise. Together we can either develop the infrastructure here or bring expertise from outside the country.” The CAA runs courses on Air Traffic Services (ATS), Engineering, Aviation Security, Aerodrome rescue and fire fighting among other five dozen courses ranging from knowledge based to competency based training.</div>
<p>
	 </p>
<p>
	<strong>The Way Forward</strong></p>
<p style="text-align: justify;">
	Mergers among insurance companies to increase capital base is regarded as one of the possibilities for enabling the insurance companies financially. The insurance companies are also trying to increase their retention capacity from 0.5 to 1 per cent which has spread positive message to their clients. There have been many progresses in Nepal’s aviation sector. From the month of Kartik, this year; Tourism Ministry has revised the provision of compulsory payment of 60 million dollar in third party liability to airliners during the registration time. CAAN has subsidized up to 8 million dollar to the airlines that fly to rural areas. An agreement was signed between the Government and CAAN for Capacity Enhancement Project of TIA under ADB loan in 2010. A safety audit was carried out in Nepal from 5 to 14 May 2009 according to the Universal Safety Oversight Audit Program (USOAP) as provisioned by ICAO and the Corrective Action Plan based on the flight safety. The findings of the audit have already been submitted to ICAO. Furthermore, a provision has been made to perform all activities in congruence with the concept of ICAO USOAP Audit Continuous Monitoring Approach (CMA).&nbsp;</p>
<p style="text-align: justify;">
	Tri Ratna Manandhar, Director General, CAAN says,” We have followed international standards in safety measures and the maintenance of aircraft is carried out as per the European standards- EASA Part-145. Buddha and Yeti airlines have already started it and others are in the process.” According to him an ICAO team is visiting Nepal in July 2013 for audit. He says, “After this ICAO audit, we will be able to prove that we have made progress in aviation management including the safety.” CAAN has been conducting strict safety programmes for safety and maintenance for the past six months. Likewise, the board of CAAN approved Air Operator’s Requirement (AOCR) in November 2012 which clearly mentions the requirements to get Air Operator Certificate. It has also managed the maintenance of aircrafts by AMT (Aircraft maintenance technician) from UK from this year. It is also planning to build an isolated parking for the planes having bomb threats and hijacking etc next year.&nbsp;</p>
<p style="text-align: justify;">
	No compromise &nbsp;at all with safety could be the best way to lower the high premium in Nepal’s aviation insurance, say the experts. The airline operators, too, are more aware about maintaining the safety standards today than in the past. AOAN has been organizing many seminars on aviation and programmes to help lower the premium by assuring safety. Thapa says, “There have been programmes organized aimed at enhancing the safety measures and we are very much confident that we would be able to enhance the safety measures.” He adds that airline operators are optimistic about reducing the risks. “A plane using only the Visual Flight Regulation (VFR) should not be allowed to go through the clouds. Pilots too should stop flying in pressure. If we follow all the safety measures definitely the risks have to go down. Civil Aviation Authority of Nepal (CAAN) should monitor these flights and instruct the airlines accordingly,” He says.&nbsp;</p>
<p style="text-align: justify;">
	Experts also feel the need of &nbsp;terrain awareness and warning systems (TAWS) developed by manufacturers and safety regulators to prevent accidents from Controlled Flight into Terrain (CFIT). CFIT is among the leading causes of airplane accidents involving the loss of life worldwide. The Wikipedia describes it as an accident in which an airworthy (fit to fly) aircraft, under pilot control, is unintentionally flown into the ground, a mountain, water, or an obstacle. With improvements in infrastructure, training and operations, reinsurers are also optimistic in reducing the cost of insurance to a reasonable level. Horne from Airclams says, “The prospects for aviation insurance business in Nepal are bright. There is a capable and knowledgeable local market which has good relationships with the global insurance community.” He adds, “What is perceived as the current high cost of insurance can and should be reduced for operators who demonstrate a good safety culture and record, adopt a Safety Management Programme that is working well and can prove that it is making a difference.”</p>
<p style="text-align: justify;">
	While the formation of a pool of all the insurance companies to collectively handle the claims in aviation insurance is in the initial phase, the government is planning to convert the insurance pool into a reinsurance company under Beema Samiti. &nbsp;Ramesh Lamsal, Executive Director of Insurance Pool says, “We have not prepared the business plan about aviation insurance yet. But if the aviation segment is included it will support the aviation business in Nepal.” Government authorities say that if the main players in the aviation business in Nepal- the airliners and insurance companies prepare appropriate strategy for the safety measures they are ready to co-operate insurance companies and protect them from those risks. Dr. KC says, “There should be positive attitude towards the formation of possible reinsurance company in Nepal after calculating the advantages and disadvantages on the business. The foremost thing is that it should be for the stability of the aviation business.”</p>',
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			'description' => 'The insurance companies providing aviation insurance have to pay a high amount of premium – more than 99 per cent at times - to the reinsurance companies abroad. In fact, the companies are sustaining their aviation insurance business from the commission they get for the premiums paid to the foreign reinsurers.',
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		'Article' => array(
			'id' => '883',
			'article_category_id' => '46',
			'title' => 'Investment Is Not A Big Thing These Days',
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			'content' => '<p style="text-align: justify;">
	<img align="left" alt="Binod Chaudhary" height="288" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_binod_feb2013.jpg" style="margin: 0 10px 10px 0;" width="350" />Binod Chaudhary is the President of Chaudhary Group (CG), one of the leading business houses of Nepal. He is also the Chairman Emeritus of Confederation of Nepalese Industries (CNI). A prominent industrialist, Chaudhary has recently published an autobiography, ‘Atmakatha’. This book tells the successful story of how Wai Wai noodles, initially imported from Thailand, which later took such a big market share. “Currently, 1 billion packets of Wai Wai noodles are produced annually which accounts for 1% of the total noodle production of the world”, claims Chaudhary. In an interview with New Business Age, Chaudhary talks about the CG’s successful ventures and the group’s plans among other issues.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Excerpts:</strong></p>
<p>
	<strong style="text-align: justify;">You seem to be saying and doing whatever the Industrialist Dhirubhai Ambani of India used to say and do. Are you influenced by him?</strong></p>
<p style="text-align: justify;">
	I always say that I am influenced by two people in India - J.R.D. Tata and Dhirubhai Ambani. The status given to the Tata Group by J.R.D. Tata is unmatched by any other business house in the world. But the industrial revolution in India was brought by Dhirubhai Ambani. Hence, I am his big fan.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You happen to praise the former leader of South Korea, Park Chung-Hee as well. Do you believe that the government should praise the industrialists?</strong></p>
<p style="text-align: justify;">
	Park Chung-Hee has given birth to many multi-national companies during his regime. That is why the multinational companies of South Korea are successful globally. I am a 100% supporter of that. I truly believe that in a country like Nepal, private companies cannot develop without support from the government. In countries like Japan and Korea, the government has pushed the private companies to grow. I believe that the same should apply in our case as well.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Why did you change the decade long established Chaudhary Group into CG?</strong></p>
<p style="text-align: justify;">
	This is just a branding. The word CG is easy to remember for people but Chaudhary Group is not. You have to twist your tongue a little bit. Actually, the brand “Chaudhary’s” could not be well established. There used to be a logo of Chaudhary’s in our every product. But, that could never be the talk of the town. Today, no one says Chaudhary’s. Everyone likes to say CG.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You have set up several Noodle producing plants throughout India. Similarly, you have invested in luxury resorts in cooperation with Taj Hotel. How much have you invested like this within Nepal and abroad?</strong></p>
<p style="text-align: justify;">
	We also do not have an exact account of that. We have many companies that are being run by different individuals. Again the criterion to judge a company has become different these days. Today, a company is judged on basis of its brand, marketability etc. According to that, the co-investors invest. Today, the Tata family owns only 3% of the Tata Group. But, they are buying several companies of millions of dollars in the name of Tata industries and are trading worldwide. That’s why investment is not a big thing these days. I constantly repeat that a multinational company cannot be setup by just collecting money from Nepal. There is not enough capital to do that. Furthermore, there is a possibility of development within and without. If you have the capability of industrialization, capital will follow you. Today, we are producing Wai Wai in more than 3 countries. In those countries, there are several investors who are interested to invest in Wai Wai. We are working in hotels in different nations, in our own brand and in others’ brands. We have an option of choosing whom to mingle with. We have already earned that trust of the investors in the international market. That is why investment value and volume by an individual company or industrialist is not the key factor here.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The main question is when we can say with certainty that Binod Chaudhary is an internationally recognized billionaire.</strong></p>
<p style="text-align: justify;">
	Binod Chaudhary is only a face. If someday CG group comes to be recognized as Nepal’s billionaire company, it is not only my pride but yours too. And I pray that the day comes soon.&nbsp;</p>
<p style="text-align: justify;">
	<strong>For some time past, you have been concentrating more on imports, rather than on two or four flagship industries like Wai Wai.&nbsp;</strong></p>
<p style="text-align: justify;">
	During the last twenty years, the nation has faced insurgency. Today also it exists in some form or the other. The only company that developed both horizontally and vertically during this period is CG. If CG owned only 3 companies back then, today it owns 14. If 500 people worked back then, today 3000 people do. &nbsp;If CG vertically owned 6 business houses back then, today the number is 10. The cement company has also been added to them. In fact, we are building the nation’s largest cement company. We are also trying to set up hydro power plants with over 240 MW capacity each. We have entered the ayurveda sector. &nbsp;In terms of education, we have established 5 institutions where over 4000 students are studying. We are going to invest Rs. 1 billion in education. Then an additional 10000 students will have the opportunity to study annually. Service industry is also being looked at closely by us. If you look at this sector by turning the pages of Aarthik Abhiyan National Daily, you can find the answer to your question over there itself.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You have recently left the chairmanship of CNI. Why was CNI unable to do anything much impactful during those years of your leadership?</strong></p>
<p style="text-align: justify;">
	I am doing well in CNI. Recently, a new leadership has arrived. We are also visiting districts. However, we are not in favour of opening branches in all the 75 districts. CNI mainly represents the industrial sector of the nation. Where there are no industries, it is not necessary to open the branches but we are frequently visiting the districts where there are industries.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Some time ago, you said that Nepal Airlines Corporation should be operated under PPP. Are you interested in investing in the corporation as well?</strong></p>
<p style="text-align: justify;">
	I have lost that interest now. I do not know if any private investor can show a positive route to Nepal Airlines Corporation. It is difficult to bring a change in such a corrupt system.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Nepalis cannot legally invest in the foreign markets. That would be great if possible. You got involved in a political party and also reached the constituent assembly. But, you could not do anything substantial in this regard.</strong></p>
<p style="text-align: justify;">
	Everybody agrees in this issue. Nepal Rastra Bank has been introducing several fiscal policies for that from time to time. But no proposal has yet been passed in the assembly. That is why it is not a law yet. Nepalis have opened restaurants and hotels in US and Japan. The important thing is that Nepalis are investing. When Nepalis could not invest and only the non residents could, Binod Chaudhary had to make Barun and Rahul Chaudhary, NRNs. Everyone should appreciate it. Please do not consider it illegal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You are such a successful industrialist. But, CG has not been able to make returns to the society accordingly. Except for some minor contributions, no significant contributions in CSR (Corporate Social Responsibility) can be seen. Why?</strong></p>
<p style="text-align: justify;">
	We believe that we have a major involvement in the social sector. Our brand line is ‘Touching life everyday’, which means we do touch lives every day. CSR also has different ways. Donation is also one of them. The other is to help the society during desperate times. You can consider Norvic hospital and educational institutes for this case. Without these initiatives people would have been deprived of quality education and health. It’s a part of CG to cooperate with the society. Some receive concessions and some receive scholarships. You take from those who can give and you give to those who can’t.&nbsp;</p>
<p style="text-align: justify;">
	Recently, we have agreed to set up a social business fund in cooperation with Noble prize winner Muhammad Yunus’s Muhammad Yunus Center. That will help the Nepalis who want to set up a business but do not have enough resources to do exactly that. We are always committed to shake hands with the society and move forward.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What are your suggestions to the Nepalis who want to start up new businesses in Nepal?</strong></p>
<p style="text-align: justify;">
	New businesses will have to face a lot of difficulties. I strongly suggest not losing hope. It always takes time to see the results. And, I am very hopeful for everyone.&nbsp;</p>',
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			'id' => '876',
			'article_category_id' => '41',
			'title' => 'Oil And Gas In Nepal: Foreign Investors’ Dilemma',
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			'content' => '<p>
	<strong>By Abhimanyu Chhetri</strong></p>
<p>
	<img alt="Oil and Gas, Sectoral February 2013" height="386" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_feb2013.jpg" width="570" /></p>
<p style="text-align: justify;">
	<span style="text-align: justify;">In the time it takes most people to read this sentence, the world will have used up about 8,000 barrels of oil (1 million liters); at 1000 barrels per second. The price of oil and gas is ever rising. International Oil companies are making huge investments around the world in search of new reservoirs. It might be surprising for some to know that Nepal has reserves of both oil and gas and foreign companies are eyeing those reserves. As of July 2012, the 10 blocks designated by the Department of Mines and Geology(DMG) for oil and gas exploration have been leased out to 4 different Oil giants. &nbsp;&nbsp;</span></p>
<p style="text-align: justify;">
	In the summer of 2012, there was a huge outcry about two international oil giants – Texana Resources Company of Houston, USA and Cairn Energy of UK leaving Nepal citing a “force majeure”. Force Majeure can free both parties from liability or obligation in case of an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or an event described by the legal term act of God (such as hurricane, flooding, earthquake, volcanic eruption, etc.). However, this allows the parties to only suspend their work but not cancel the contract.&nbsp;</p>
<p style="text-align: justify;">
	In most countries oil companies are being forced out. However, in Nepal the two companies packed up and left. The two companies said they were abandoning exploration work in Nepal due to bureaucratic hurdles and lack of cooperation from the government. Both have already spent millions of dollars in Nepal on preliminary surveys and were all set for a ‘seismic operation,’ which determines whether the surveyed areas contain commercially viable quantities of oil. To date, Texana has spent US$3 million and Cairn US$2 - 10 million in the country. &nbsp;The two companies were required to pay an annual fee of US$ 50,000 per ‘block’ to the Nepal government. They also have to provide bank guarantees before starting the geological survey works.</p>
<p style="text-align: justify;">
	Rajendra Prasad Khanal, Head of the Petroleum Exploration Promotion Project (PEPP) under DMG, says that these companies entered Nepal during Maoist Insurgency. Texana won the bid in 1998 for 2 blocks and Cairn Energy got the license for 5 out of remaining 8 blocks in 2004. He says, “It is understandable that the companies could not work before due to the insurgency going on during those years, but now the situation has changed. Nepal is a peaceful developing country and there is no obstacle for them to carry out their investigations.”</p>
<p style="text-align: justify;">
	In fact, the team at PEPP is repeatedly requesting them to complete their work in time as per the agreement. Texana has 13 months left and Cairn energy has 7 months left of their contract period. Mr. Khanal and his team are creating a momentum to complete the necessary pre investigations and hopefully extract the crude oil in near future. &nbsp;</p>
<div style="padding:10px; background:#f4f3e6;margin-bottom:10px;">
	<div style="padding:10px; background:#f4f3e6;">
		<strong>Sharing the country’s prospective product with the foreign companies&nbsp;</strong></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		The Petroleum Regulation 2041 (1985) has made a provision of “Model Petroleum Agreement” which includes all the items to be covered in the petroleum operations. This model agreement is in the form of Production Sharing Contract with provision of Royalty and Income Tax. This is also influenced by the amount of crude reserves that can be extracted. The companies will have to pay a royalty of 12.5% to the Government of Nepal and a 30% income tax after sales of the optimal amount of extraction. An obligation to drill a well is not mandatory in the initial exploration period of 4 years.</div>
</div>
<p style="text-align: justify;">
	Recently, Nepal has accorded high priority to encourage foreign investment in the country. With economic liberalization policy of the government and attractive fiscal terms available, Nepal is committed for full cooperation to international companies in facilitating petroleum exploration in Nepal.</p>
<p style="text-align: justify;">
	The DOMG and PEPP have divided the Tarai and the Siwalik hills into 10 ‘exploration blocks’ of 5,000 sq km each and is trying to sell the exploration license to the International oil exploration companies . Texana won the bid for Blocks 3 (Banke) and 5 (Chitwan) and entered into an agreement with the government in December 1998. In 2004, the British company Cairn Energy received a license to explore five other blocks—Block 1 (Dhangadhi), Block 2 (Karnali), Block 4 (Lumbini), Block 6 (Birgunj) and Block 7 (Malangawa).&nbsp;</p>
<p style="text-align: justify;">
	&nbsp;As of July 2012, when the two companies left the country citing “Force Majeure”, the DMG put the remaining blocks up for bid. Currently, the Block 8(Janakpur), Block 9(Rajbiraj) is owned by Emirates Associated Business Group (EABG) of UAE and the Block 10(Biratnagar) is owned by BBB Champions, which is another Houston based Oil Company. Both have bought a 4 year license to carry out exploration activities in these areas.&nbsp;</p>
<p style="text-align: justify;">
	Mr. Khanal thinks that this is only the first step and a considerable amount of work is still to be done. The team of geologists at the DMG and PEPP are constantly providing the geological data to the foreign companies that can be indicators to the presence of oil in the region. Along with this, oil and gas have been found in India, Pakistan and Bangladesh in similar geological setting as that of the exploration blocks in Nepal. This has also further encouraged Mr. Khanal’s team to find the hidden reserves. According to Khanal, more companies are showing interest to bid for the license. The PEPP and DMG are involved in collecting more geological data as to attract more companies and facilitate the process of oil extraction for commercial use.</p>
<div style="text-align: justify;">
	<img align="right" alt="Oil and Gas in Nepal, Sectoral February 2013" height="402" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_feb2013(2).jpg" style="margin:0 0 0 10px;" width="300" />
	<div style="">
		There is an urgency to extract these non renewable resources. Geologically, oil is formed when the dead burials mature under high temperature and pressure. After a certain period, the oil moves from the oil window to the gas window. This indicates that the reserves underground have matured for extraction a long time ago and the reserves might be lost if not extracted in time. A number of oil and natural gas seeps have been recoded in a stretch of 14km in Padukasthan, Sirsethan and Navisthan area in Dailekh and only gas seeps in Muktinath in Mustang. Methane gas deposit in Kathmandu Valley is known since long time. Feasibility study has confirmed that this gas can be used for industrial and household purpose and the reserve is sufficient to supply gas to 21,000 families for about 30 years. During preliminary study, 23 geothermal hot springs have been identified nationwide. Most of them are found to be associated with Main Central Thrust (MCT) and confined to the river banks. The temperature of the hot spring water ranges from 40o to 115oC. It can be utilized for heating, drying fruits, hot water bath to heal skin disease. According to Krishna Prasad Kafle, a Geologist retired from DMG, considerable amount of investments should be made in exploring these resources.&nbsp;</div>
	<div style="">
		 </div>
	<div style="">
		The only exploration of theses precious natural resources is done in Kathmandu Valley, where Peat and Lignite is mined and used mainly in firing brick kilns. Only one well, the Shell er al Biratnagar 1, with a total depth of 3,520 m has been drilled in Nepal. In 1986, Shell and Triton bought Block no. 10 in Eastern Nepal for exploration but abandoned its project soon when it didn’t strike any oil. People associated with the project argue that Shell just didn’t drill deep enough. The situation was such that the drilling machines had to be imported from India and, due to certain trade restrictions, daily operation charges went as high as Rs 35,000 per day in the then price situation. Today, the daily operation cost is in the range of thousands of dollars. But, if considerable amount of oil is found in Nepal, it will be a boon for the Nepalese economy.</div>
	<div style="">
		 </div>
	<div style="">
		 </div>
</div>
<div style="padding:10px; background:#f4f3e6;">
	<strong>A case of Norway&nbsp;</strong></div>
<div style="padding:0 10px; background:#f4f3e6;">
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		Before 1960, though an independent country Norway was constantly exploited by the rich and powerful UK and Denmark. During World War I, Norway was a neutral country. In reality, however, Norway had been pressured by the United Kingdom to hand over increasingly large parts of its massive merchant fleet to the UK at low rates, as well as to join the trade blockade against Germany. At the end of the 1950s, very few people believed that the Norwegian continental shelf concealed a wealth of oil and gas. Then, Ekofisk was discovered in 1969 and the Norwegian oil adventure started in earnest. Production from the field started on 15 June 1971 and during the following years, several large discoveries were made. In the 1970s, the exploration activity was concentrated in the North Sea, but the shelf was also gradually opened northwards. This led to world-class discoveries and the production from the Norwegian continental shelf has been dominated by these large fields that were given names such as Ekofisk, Statfjord, Oseberg, Gullfaks and Troll. These fields have been and still are very important for the economic development of Norway. In the last 40 years, Norway has developed an oil and gas industry and this in-turn has resulted in unique national economic growth and welfare improvements. Today, Norway ranks as the second wealthiest country in the world in monetary value, with the largest capital reserve per capita of any nation. The standard of living in Norway is among the highest in the world. It used up its oil and gas reserves to gain this status.</div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		<img align="left" alt="" height="207" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_norway_feb2013(3)(1).jpg" style="margin:0 10px 0 0;" width="300" /></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		Petroleum exploration activities carried out on the continental shelves of Norway.</div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		<span style="font-size:11px;"><br />
		</span></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: right;">
		<span style="font-size: 11px;"><br />
		</span></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: right;">
		<span style="font-size: 11px;"><br />
		</span></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: right;">
		<span style="font-size: 11px;"><br />
		</span></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230);">
		<span style="font-size: 11px;">Source: upstreamonline.com</span></div>
</div>
<p>
	 </p>',
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			'created' => '2013-03-16',
			'modified' => '2013-03-23',
			'keywords' => '',
			'description' => 'While in most countries oil companies had to be forced out, in Nepal companies have packed up and left on their own complaining bureaucratic hurdles.',
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		'Article' => array(
			'id' => '881',
			'article_category_id' => '47',
			'title' => 'A Quest For Bliss',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<img align="right" alt="Trishakti Joshi" height="338" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/personality_trisakti_feb2013.jpg" style="margin: 0px 0px 0px 10px;" width="318" /><strong>By Gaurav Aryal</strong></p>
<p style="text-align: justify;">
	Trishakti Joshi, CEO of Elite Networks was raised at a time when sons in the family were pressed to be either a doctor or an engineer. Being a part of the family with a daughter and two sons, Joshi was set to be a doctor as his elder brother had chosen the path to engineering. But the life of his had something else in its details.</p>
<p style="text-align: justify;">
	He was convinced and determined to be a doctor in his schooldays. So, he also took up Biology as one of the optional subjects in school. But as soon as he came out of his school passing his School Leaving Certificate (SLC), he watched lives of doctors from close. Then the fire in him that wanted to be a medical doctor extinguished. Joshi explains, “I was always a kind of person who wants and tries to do something new. I did not find that profession interesting. New experiments and trying out new things were missing out there. Though there is scope for research and development, it is not simply possible in the initial phase.”</p>
<p style="text-align: justify;">
	<strong>The Chosen Dream</strong></p>
<p style="text-align: justify;">
	Deciding to quit the doctoral profession he thought of shifting to architectural engineering. But unfortunately, only Intermediate in Engineering was taught in Nepal. So, one had to go abroad to complete the further studies. So, he joined ISC in Patan Campus but entering the Physics faculty was not so easy for a boy who came through a biology background. &nbsp;He managed through it and joined BSc in Trichandra College. Though he was keen to go to the US for further studies, he recalls his father, who had lived in the US for a long time, did not want Joshi to go there for his undergraduate studies.</p>
<p style="text-align: justify;">
	In the meantime the wave of new technology and especially the computers had struck Nepal. Along with his studies, he also joined MIPS at Bagbazar and learned the ABCD of computers there. The curiosity for the technology and a strong background in Science made him land as a job holder in the Mercantile Office Systems. There he used to repair computers. He worked for five years for Mercantile. Having worked for a long time with machines, he then craved working with people.</p>
<p style="text-align: justify;">
	With a dream to do something new and more satisfying he came up with an idea to offer computer networking services to offices. It was already an old thing in the international market but it was pretty new for Nepal. Then he established Elite Networks, partnering with a friend, the company which he is currently looking after.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Making Leaps</strong></p>
<p style="text-align: justify;">
	Joshi cashed in on the relationship he made in his previous job to find his clients. So, the networking responsibilities of the then Grindlays Bank or today’s Standard Chartered Bank were taken up by his company in its initial days. Joshi accredits the bank for the success of his company. As of now the entire IT of the bank is managed by Elite Networks. His company worked for the American Library, looked after IT aspects of Hillary Clinton’s Nepal visit and also sold computers.</p>
<p style="text-align: justify;">
	In the due course, his company also work abroad too. Joshi’s company took up all the responsibilities of setting up networking for UNDP’s Bhutan Office. As of now, he has been introducing and maintaining the new initiatives his company makes. Around 1996 he also initiated the project to network two offices. And Joshi claims that his company was the first in Nepal to introduce wireless networking.&nbsp;</p>
<p style="text-align: justify;">
	Joshi’s venture that began with networking business also tried out sms banking, and now concentrates more on providing complete IT solutions to its clients. It not only provides tools and technology but also provides the entire services related with it. Since 2009, he started selling Automated Teller Machine (ATM) and all the services associated with it such as installation and maintenance among others. Joshi claims that his company has over 50 per cent market share in the ATM sales and caters to around 65 banks and financial institutions. His company also installs and manages ATM lounges. Once, Joshi also provided consulting services for his clients about the IT. Apart from these, his company in partnership has established and operated a data centre at Thapathali targeting financial institutions and corporate houses.</p>
<p style="text-align: justify;">
	Elite Networks that began with two people, has now reached to a team of 60. Moving away from selling hardware, he plans to concentrate more on the complete solution packages and also venture into software development. Joshi sees a huge market prospects not only in Nepal but also globally in apps development for smart-phones and tablet computing.&nbsp;</p>
<p style="text-align: justify;">
	Had he not been in the current business, Joshi thinks he would have become either doctor or taking some job somewhere in the field of IT.&nbsp;</p>
<div style="padding:10px; background:#f4f3e6; margin-bottom:5px;">
	<p>
		<strong><span style="color: rgb(255, 0, 0); font-size: 16px;">Personal Side</span></strong></p>
	<ul>
		<li>
			Likes attending social events and professional gatherings</li>
		<li>
			Enjoys drinking without letting alcohol taking him over</li>
		<li>
			Loves cooking on weekends</li>
		<li>
			Loves using gadgets more for his works than for entertainment</li>
		<li>
			Prefers quality over brand names but gives value to brand values</li>
		<li>
			Likes photography</li>
		<li>
			Loves playing golf</li>
		<li>
			Socially active as a member of Toastmasters Club, Executive Member of CAN and Executive Member of Nepal Golf Association</li>
	</ul>
</div>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	Joshi says, “For me trying and doing new things is like an addiction. I visit abroad to understand and find out emerging technologies and identify new technologies that can be useful in Nepal.” Joshi localises those technologies to best suit the need of the Nepali market before introducing to Nepal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Working style</strong></p>
<p style="text-align: justify;">
	While making any decisions, Joshi goes after his instincts, local market knowledge and trend in the international market. Similarly, he says that he readies himself before the market readies itself while introducing any new products and services. Joshi is already ready on his part before the clearing houses are ready to be operational in Nepali market- his new target place to offer services and solutions. Joshi recalls such times when he has been ahead of time and market, and instances where he had to drop the entire idea. He exemplifies such a situation in sms banking, where other companies in the market are doing well currently.</p>
<p style="text-align: justify;">
	Every day, Joshi gets up at around 5:30 in the morning. Then, he goes to the club for exercises and fitness for one and a half hour. At around 8:30, he leaves for office and reaches there within half an hour. As he has to keep in touch with companies in Singapore, he utilises the time before his employees arrive for corresponding with those companies. “When my team arrives at office by 9:30, I am ready for them and by 10, when banks open, I am ready for clients too,” he describes. He usually ends the day at 6 pm.</p>
<p style="text-align: justify;">
	<strong>Management approach</strong></p>
<p style="text-align: justify;">
	Joshi looks after the management of his company Elite Networks while his partner Pramod Kunwar looks after all the technical aspects. He reveals that the entire accounting services have been outsourced to another company since day one.</p>
<p style="text-align: justify;">
	Joshi believes, “As easy it is to establish a company, it is equally difficult to sustain it. It may look effortless to grow but it is equally tough to maintain that growth.” &nbsp;Joshi’s company around six years ago thought of getting an ISO certificate but dropped the idea because of the lengthy documentation process. But, he slightly modified the procedures and applied all the quality measures on the functioning of the company.&nbsp;</p>
<p style="text-align: justify;">
	When it comes to the human resource management, he has not left any stone unturned to keep his employees happy and motivated. He says that performance based incentives and regular motivational packages are offered to the human resources to keep their high spirits going higher.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Defining Success</strong></p>
<p style="text-align: justify;">
	For different people, success comes at different shapes and sizes. For Joshi, it comes in the form of satisfaction and joy. He recalls his initial days when he used to be filled with joy on closing a deal. “Everything does not remain the same forever. I am constantly in search of what next. If the newness is missing, pleasure diminishes,” he explains, “More than money, I enjoy the process of making money.”</p>
<p style="text-align: justify;">
	Joshi suggests sincerity and dedication to the work is must for both satisfaction and achieving success. “You have to believe on what you do and you have to be passionate about it. When one enjoys work, money does not become the first priority and success will automatically follow. Money is its by-product,” says he.</p>
<p style="text-align: justify;">
	<strong>The Personal Space</strong></p>
<p style="text-align: justify;">
	When it comes to bridging the professional and personal life, Joshi likes them to remain at a distance. He does not mix the two. He says that unless it is an emergency, he neither takes official work to home nor receives any work related phone calls from home. Saturdays are the days when he likes spending time with his family and giving chances to his hobbies and interests. When he gets free time, he adores going little adventurous. He loves hiking, trekking, cycling and roaming around in the nature. Joshi has also recently developed new hobbies – photography and golf. He plans to give more time to his interests and his desires that were sidelined on the process of pursuing bigger professional dreams.</p>
<p style="text-align: justify;">
	It has been more than two decades since he first started working. So, he desires to give some extra time for himself reducing the working hours. “I have been thinking to minimise my working hours and give little extra time for my personal interests,” Joshi promises.</p>
<p style="text-align: justify;">
	Similarly, at the back of his mind he has been slowly making rough sketch of retirement and succession planning. He wants to groom somebody capable so that he can handover his responsibilities. However, he does not plan to completely abandon his company and profession.</p>',
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			'description' => 'Trishakti Joshi, CEO of Elite Networks, likes to keep himself ahead of the market which he wants to conquer with new technologies and every service that come attached to it. The believer in work, passion and dedication finds success in every satisfying moment he has found in the pursuit of his professional goals.',
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	(int) 13 => array(
		'Article' => array(
			'id' => '882',
			'article_category_id' => '48',
			'title' => 'New Financial Lexicon',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Madan Lamsal</strong></p>
<p style="text-align: justify;">
	Without certain dedicated abbreviations, terms and jargons, no modern sector appears trendy and modern. The financial services definitely cannot fall behind in this innovative venture. What they were originated for and what exactly they have started to mean now is indeed a linguistic feast to cheer for. Some examples from a non-exhaustive glossary:&nbsp;</p>
<p style="text-align: justify;">
	<strong>Accrued Interest:</strong> An accumulated interest due in the account of the most-favoured borrower of the bank, which may never be paid.</p>
<p style="text-align: justify;">
	<strong>ACH:</strong> Association of Clever Herds, representing the corporate world created to buy time from their wives.</p>
<p style="text-align: justify;">
	<strong>AML:</strong> A new disease called Acute Myeloid Leukemia diagnosed among some businessmen caused by the flu emanating from Anti Money Laundering (AML) Act.</p>
<p style="text-align: justify;">
	<strong>Appraisal:</strong> An annual drama of awarding a crony of the management for promotion or favouring a mediocre firm at the cost of the best performer without connections.&nbsp;</p>
<p style="text-align: justify;">
	<strong>APR: </strong>A commonly used tool to make customers April Fools, previously known as Annual Percentage Rate.</p>
<p style="text-align: justify;">
	<strong>ATM:</strong> Any Time Malfunction machine to dispense money even from your own account.</p>
<p style="text-align: justify;">
	<strong>Availability Date:</strong> A choreographed schedule of senior bank officials to prove that they actually work sometime, if available for the cause of common business interests.</p>
<p style="text-align: justify;">
	<strong>Availability Policy:</strong> Bank&#39;s policy to indirectly announce its liquidity position by fixing the date when funds deposited into an account will be actually available for withdrawal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Bank Custodian:</strong> The Central bank, in case of Nepal NRB, is a specialized police custody for the bankers who remain recalcitrant to follow NRB directives issued not necessarily to maintain the safety of depositors&rsquo; assets but to prove that the central bank actually has some teeth and may bite anyone it doesn&#39;t like.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Bank:</strong> A glassed cage where you are made to feel like a pig when entered and your assets are valuated only a quarter of what they are actually worth for, and you cannot have any say at any point in time whether you deposit or borrow.</p>
<p style="text-align: justify;">
	<strong>Bankrupt:</strong> New certificate of dignity to most of the clients of most of the banks. And you can justify it by talking all day about recession.</p>
<p style="text-align: justify;">
	<strong>Bear Market:</strong> A cool alcoholic fizzy drink for the losers in the capital market, synonymous with the beer market.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Billionaire:</strong> A rare breed of individuals in Nepal who have never made their books of accounts public and never proved to have done illegal things.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Bull Market: </strong>A market place where oxen are sold and bought by the farmers right before the farming season.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Capitalism:</strong> A policy of almost every political party of Nepal that doesn&#39;t believe in anything less than accumulating capital by hook or by crook.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Collateral:</strong> A single basis of evaluating the borrower&#39;s credit-worthiness in the Nepali banking system, without which Nepali banks cannot even breathe. Things like credit records or project viabilities of the borrowers are bull sheet.</p>
<p style="text-align: justify;">
	<strong>Co-Signer:</strong> An individual who sings in the tune of the boss in the bank, also known as a co-maker.</p>
<p style="text-align: justify;">
	<strong>Deferred Payment: </strong>An act of postponing the payment for a future date which never comes; which has now become a widespread practice in the Nepali banking industry.</p>
<p style="text-align: justify;">
	<strong>Depression:</strong> A psychological phenomena reflecting the state of mind of the citizens, caused by the long run gloomy outlook of the economy.</p>
<p style="text-align: justify;">
	<strong>EBIT: </strong>Bank&#39;s earnings before irregularities and tampering.</p>
<p style="text-align: justify;">
	<strong>Electronic Banking: </strong>&nbsp; An internet or mobile-based service of the banks that allows even a non account holder to obtain account information and manage certain banking transactions through a personal computer, directly logging into the financial institution&#39;s portal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>KYC:</strong> Kill Your Customer &nbsp;&nbsp;</p>
<p style="text-align: justify;">
	<strong>Mutual Fund:</strong> A mutual practice of distributing hefty loans among the CEOs of the banks in a turnkey basis so that they can invest in real estate business.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Outstanding Check:</strong> An errand boy standing outside the door of an office carrying a bank&#39;s check.</p>
<p style="text-align: justify;">
	<strong>SLR: </strong>Self-loading rifle belonging only to the central bank, used to rob the banks in the veil of statutory liquidity ratio.</p>
<p style="text-align: justify;">
	<strong>Stagflation:</strong> When it is the time for the Royal Stag, the leisure borne out of inflation-induced inaction.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Students&rsquo; Loan:</strong> Loans given to students to buy sporty bikes, so as to enable them to undertake a number of dating projects simultaneously.</p>
<div style="text-align: justify;">
	&nbsp;</div>',
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			'description' => 'Without certain dedicated abbreviations, terms and jargons, no modern sector appears trendy and modern. The financial services definitely cannot fall behind in this innovative venture. What they were originated for and what exactly they have started to mean now is indeed a linguistic feast to cheer for.',
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	(int) 14 => array(
		'Article' => array(
			'id' => '873',
			'article_category_id' => '40',
			'title' => 'Nepali Insurance Companies Are Paying Big Premium To Re-insurance Companies',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong style="color: rgb(35, 200, 250); font-size: 16px; text-align: right;">‘Nepali insurance companies are paying big premium to re-insurance companies’</strong></p>
<p>
	<img align="right" alt="Fatta Bahadur KC, Chairman Beema Samiti" height="329" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/fatta_cover_feb2013.jpg" style="margin:0 0 0 10px;" width="250" /></p>
<address style="text-align: right;">
	<strong>Prof Dr Fatta Bahadur KC</strong></address>
<address style="text-align: right;">
	<strong>Chairman</strong></address>
<address style="text-align: right;">
	<strong>Beema Samiti (The Nepali regulator of Insurance Sector)</strong></address>
<p>
	 </p>
<p>
	 </p>
<p style="text-align: justify;">
	<strong>What is the size of the aviation insurance market in Nepal?</strong></p>
<p style="text-align: justify;">
	Aviation insurance is one of the important portfolios in the insurance sector. So far as the size of the aviation insurance is concerned, it has been increasing every year. There are altogether 17 non-life insurance companies registered. But only seven of them are into the aviation insurance business. The annual premium collection from aviation insurance in Nepal is about Rs 3 billion.&nbsp;</p>
<p style="text-align: justify;">
	<strong>It is said that some insurance companies are trying to form a pool to handle the aviation insurance claims collectively. What is the latest progress in this regard?</strong></p>
<p style="text-align: justify;">
	I, too, have heard that some insurance companies are trying to tie &nbsp;up to form such a pool. But this is yet to get a concrete shape, as far as I know. I think the main objective behind forming such a pool is to reduce insurance risks in the aviation sector. We hope the pool will come into operation in the near future.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What future do you see for the aviation insurance business in Nepal?</strong></p>
<p style="text-align: justify;">
	The future of aviation insurance business is bright. As the government has already adopted a liberal economic policy, many new airliners have entered Nepal. Aviation insurance as a business has grown in Nepal with the growth in the domestic aviation sector. &nbsp;Air travel has become convenient and affordable for many Nepalis today. This has ultimately helped the aviation insurance business grow in the country.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Almost whatever the insurance companies earn from the aviation segment goes to the reinsurance companies abroad. Some are even said to be making losses in the aviation segment. It is said that the companies know that they are not going to make profits from the aviation segment. But they do aviation insurance just to show high amount of premium collections. What do you say?</strong></p>
<p style="text-align: justify;">
	It is obvious. Though, insurance companies should have retention capacities to bear the risks by themselves, most of them lack this. This is one of the reasons why they transfer their risks to the re-insurance companies. Consequently, Nepali insurance companies have to pay a high volume of premium to them. The margin between the premium collected from the airlines companies and the premium paid to the re-insurers is very small. It shows that they are not able to save even the cost to transfer their risks. They need to transfer funds to reinsurance companies. It is a very serious problem.&nbsp;</p>
<p style="text-align: justify;">
	<strong>How can we lower the high insurance premium?</strong></p>
<p style="text-align: justify;">
	First of all, the airlines should try to be safe from different risks. Other stakeholders like CAAN should also maintain the runways properly and other technical aspects, information dissemination practices etc. The pilots, too, should be well-trained. All other stakeholders in the aviation sector should take this matter seriously, work on it together and make careful collective efforts to avoid risks.</p>
<p style="text-align: justify;">
	<strong>Aviation insurance premium in Nepal is said to be among the highest in the world? Why is it so high?</strong></p>
<p style="text-align: justify;">
	Yes it is true. Since the premium is always determined by risks; a high risk ultimately draws a higher premium. This risk is mainly associated with aircraft accidents; the more the accident, the more the risks. We have been trying to reduce the risks in this sector which is known as mitigation of the risks.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The annual claims payout in the aviation sector has been constantly rising. Some people say this could further increase the already significantly high aviation insurance premium. How are we going to address this problem?</strong></p>
<p style="text-align: justify;">
	It is a compulsion for the aviation insurance business in Nepal. Generally, if the premium is high, the practice of insurance is low but in aviation insurance, if the premium is high you need to reinsure with other big companies because of the risk factor. You need to find reliable reinsurers, pay premium and transfer your risks to them. There is a direct and positive relation between the increasing rate of premium and the business of aviation insurance. However, if all these measures are properly adopted then the premium rate will be low.&nbsp;</p>
<p style="text-align: justify;">
	<strong>There are various types of aviation insurance policies in the world. Are all of them available in Nepal?</strong></p>
<p style="text-align: justify;">
	We have only few aviation policies which basically cover the aircraft, crew-members and passengers. It also covers the sky, and if both the parties agree, grounded risks are also included in the aviation insurance. Generally, an insurance policy depends on the requirement of the policy holder. Therefore, the requirements of the airliners play a key role in the agreement between the insurance companies and the airliners.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The country’s first-ever aviation insurance summit was organized in the capital recently. How helpful was this summit?</strong></p>
<p style="text-align: justify;">
	The summit was a milestone in Nepal’s aviation sector. It’s &nbsp;definitely a positive development. It helped the stakeholders in the aviation business to know each other and, at the same time, provided a platform to share their experiences, views and problems. I think the re-insurers, the under-writers and other stakeholders who participated in the programme knew the actual situation of Nepal and the aviation insurance business here. The summit was successful and the Nepali stakeholders have succeeded in addressing some of the key issue of the aviation insurance business in Nepal.</p>',
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			'title' => 'Agriculture Focus: Ranjan Enterprises',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Ranjan Enterprises" height="48" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_corporate_focus_ranjan_enterprises_logo.jpg" style="text-align: justify;" width="227" /></p>
<p style="text-align: justify;">
	Ranjan Enterprises Pvt Ltd (REPL) under the banner of LPRANJAN GROUP is a business enterprise, established in 2001 to carry out business in the field of agriculture sector. Chairman of the group is Laxmanjee Prasad. It has two sister bodies Ranjan Enterprises Pvt. Ltd and Ranjan Trade Concern.</p>
<p style="text-align: justify;">
	REPL carries out business in the field of agriculture sector dealing in products under agrochemicals (organic and inorganic), organic fertilizers, seeds, public health insecticides, fertilizers (micronutrient &amp; chemicals), etc. REPL caters business by appointing dealers &amp; supplying to corporate houses engaged in agriculture business and own consumption.</p>
<div style="float:right;margin:0 0 5px 10px;">
	<p style="text-align: justify;">
		<img alt="Shashi Ranjan, Ranjan Enterprises" height="178" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_corporate_focus_ranjan_enterprises_shashi.jpg" width="150" /></p>
	<address>
		<strong>Shashi Ranjan</strong></address>
	<address>
		<strong>Director</strong></address>
	<address>
		<strong>Ranjan Enterprises Pvt Ltd</strong></address>
</div>
<p style="text-align: justify;">
	Sharing the purpose of establishment of the company, Shashi Ranjan Director of REPL said, “Our initial aim was to cater the remote regions of Nepal by setting up an integrated platform to provide the best quality and most reliable products throughout the country for the welfare of the farmers, plant growers and local consumers”.&nbsp;</p>
<p style="text-align: justify;">
	REPL plans to move into imports of fertilizers like Urea, DAP and MOP. Agriculture equipment like cultivator, harrow, tractors and mini tillers &nbsp;are the next areas where the company is planning to enter in the future. The company also plans to venture into agriculture farm by purchasing land and cultivating and growing vegetables and fruits and breeding livestock as well.&nbsp;</p>
<p style="text-align: justify;">
	REPL have recently launched fertilizers like Copper Sulphate, Ammonium Sulphate and Organic fertilizer named JAIVIK. REPL along with its sister concern has ventured into Agriculture Sprayers and Agriculture Shade Nets of different size and capacity.&nbsp;</p>
<p style="text-align: justify;">
	Director Ranjan shared that there is no turning points yet for them but because of trust and goodwill, they are able to win the hearts of consumers and also the corporate sector who have been doing business with them. With the trust, we have ventured into different fields of agriculture activities, says Ranjan.&nbsp;</p>
<p style="text-align: justify;">
	Ranjan Trade Concern (RTC) has been established to handle local business and related imports in FMCG and agriculture sector. Currently, the company plans to focus steps in taking further steps in trading business emphasising with imports, distributorships and general purchases of FMCG goods, industrial goodsn and agriculture products from around the world for trading, exclusively in the country. RTC also plans to move into import of chemicals, and petrochemicals.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Major Products</strong></p>
<p style="text-align: justify;">
	REPL have launched mass range agriculture. Insecticides, Fungicides, Rodenticides, Organic insecticides, organic fungicides, organic fertilizers, chemical fertilizers, Public Health Insecticides, Knapsack Sprayers, Garden Sprayers and spare parts, Agriculture shade nets and seeds are some examples.</p>
<p style="text-align: justify;">
	<strong>Human resource management&nbsp;</strong></p>
<p style="text-align: justify;">
	REPL has small human resource team. “Being a small business enterprise our team is small,” said director Ranjan. “But our team is well experienced to handle problems of farmers, especially in their fields such as pests’ management.”&nbsp;</p>
<p style="text-align: justify;">
	<strong>Corporate Social Responsibility (CSR)</strong></p>
<p style="text-align: justify;">
	While accepting that his organization is well aware of corporate social responsibility, director Ranjan said, “At present we have not moved directly into CSR projects but have plans to do so in near future”.</p>
<p style="text-align: justify;">
	<strong><span style="font-size:14px;"><span style="color: rgb(255, 0, 0);">SWOT Analysis</span></span></strong></p>
<p style="text-align: justify;">
	<b>Strength:</b></p>
<p>
	Farmers and other consumers Satisfaction &amp; trust&nbsp;</p>
<p>
	<span style="font-size: 14px;"><b><span style="font-size:12px;">Weakness:</span></b></span></p>
<p>
	<span style="font-size: 14px;"><span style="font-size:12px;">Still unable to tap new markets within the country due to lack of awareness and lack of new partners.&nbsp;</span></span></p>
<p>
	<span style="font-size: 14px;"><b><span style="font-size:12px;">Opportunity:</span></b></span></p>
<p>
	<span style="font-size: 14px;"><span style="font-size:12px;">Huge market for agriculture related product, rising awareness&nbsp;</span></span></p>
<p>
	<span style="font-size: 14px;"><b><span style="font-size:12px;">Threats:</span></b></span></p>
<p>
	<span style="font-size: 14px;"><span style="font-size:12px;">Unhealthy competition within the sector</span></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(255, 0, 0);"><br />
	</span></span></p>
<p style="text-align: justify;">
	<img alt="Ranjan Enterprises" height="129" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_corporate_focus_ranjan_enterprises_products.jpg" width="580" /></p>',
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<p style="text-align: justify;">
	<strong>By Rashesh Vaidya</strong></p>
<p style="text-align: justify;">
	Standard Charted Bank Nepal Limited is seen at number one position under the CAMELS Rating. The bank stood at the number one position as per the evaluation done on its second quarter financial report of the fiscal year 2012-13. The bank has been capable to maintain good total expenses to total assets ratio during the period among the 32 commercial banks. Similarly, the bank has also maintained good return on assets as well.&nbsp;</p>
<p style="text-align: justify;">
	The newly established commercial banks stood at the top rank under the EAGLES Rating. The low level of non-performing loan to total loan and advance ratio was the main reason behind these banks to stand at the top rank. Similarly, the high growth ratio of the loan and advances also boosted them to get top rank.&nbsp;</p>
<p style="text-align: justify;">
	As per the EAGLES rating, Commerze and Trust Bank Limited stood at the first position. Similarly, Sanima Bank Limited which was upgraded from the development bank to commercial bank came at second. &nbsp;The good position of the credit-deposit ratio and capital adequacy ratio of the newly opened bank has helped them to gain the top position.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The CAMELS system evaluates banks on the following six parameters:</strong></p>
<ol>
	<li style="text-align: justify;">
		<strong>Capital Adequacy: </strong>Capital adequacy has been the main pillar of existence of any bank. Banks have to maintain a proper mix of different types of capitals to avoid pressure on their dividend policies and inadequacy of total capital funds against the risk exposure. Capital adequacy is measured by the Capital to Risk-Weighted Assets Ratio (CRAR). A sound capital base strengthens the confidence of depositors.</li>
	<li style="text-align: justify;">
		<strong>Asset Quality:</strong> One of the indicators for asset quality is the ratio of non-performing loans to total loans (Gross Non-Performing Assets - GNPA). The gross non-performing loans to gross advances ratio is more indicative of the quality of credit decisions made by bankers. A higher GNPA is indicative of poor credit decision-making.</li>
	<li style="text-align: justify;">
		<strong>Management: </strong>The ratio of non-interest expenditures to total assets can be one of the measures to assess the working of the management. This variable, which includes a variety of expenses, such as payroll, workers’ compensation and training investment, reflects the management policy stance.</li>
	<li style="text-align: justify;">
		<strong>Earnings:</strong> It can be measured as the return on asset, ratio.</li>
	<li style="text-align: justify;">
		<strong>Liquidity:</strong> The ratio of cash maintained by a bank and balances with the central bank to the total asset, is an indicator of the bank’s liquidity.&nbsp;</li>
	<li style="text-align: justify;">
		<strong>Sensitivity to Market Risks/Systems and Control:</strong> Risks associated with adverse movements in the exchange rates (including gold positions), interest rates, liquidity and investment in equity are covered under market risk management. A bank faces market risks either from its investments in government securities and bonds or from the exchange rate risk that persist in matching position. The market risk is managed by the banks’ Asset and Liability Committee (ALCO) which assesses policies and levels of risk appetite. &nbsp;Similarly, the central bank of Nepal, Nepal Rastra Bank has made a provision of additional 2 percent of the total Risk Weighted Exposures by Supervisory Review.</li>
</ol>
<p style="text-align: justify;">
	<img alt="Top Ten Banks as per CAMELS and EAGLES" height="292" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_sectoral_banks_per_camels_and_eagles.jpg" width="580" /></p>
<p style="text-align: justify;">
	In the CAMELS rating system, each bank is assigned two sets of ratings:</p>
<ol>
	<li style="text-align: justify;">
		Performance Ratings, which comprise six individual ratings that address each of the CAMELS components; and</li>
	<li style="text-align: justify;">
		An overall Composite Rating, which is a single rating based on a comprehensive assessment of the bank’s overall condition.</li>
</ol>
<p style="text-align: justify;">
	Both the ratings are scored on a numerical scale of 1 to 5 in the ascending order of supervisory concern where “1” represents the best rating and “5” the worst.</p>
<p style="text-align: justify;">
	Here is a description of the rating scores for each of the five components:</p>
<p style="text-align: justify;">
	Rating 1 (A) indicates very strong performance</p>
<p style="text-align: justify;">
	Rating 2 (B) indicates above-average performance that adequately provides for a safe and sound operation of the BFIs.</p>
<p style="text-align: justify;">
	Rating 3 (C) indicates performance that is flawed to some degree.</p>
<p style="text-align: justify;">
	Rating 4 (D) indicates unsatisfactory performance which, if left unchecked, could threaten the solvency of the BFIs.</p>
<p style="text-align: justify;">
	Rating 5 (E) indicates very unsatisfactory performance and calls for immediate remedial attention for the survival of the BFIs.</p>
<p style="text-align: justify;">
	The rating of banks can be further developed by giving a score to each component of the CAMELS, known as the Composite CAMELS Rating Score. The Composite CAMELS Rating can be calculated as:</p>
<p style="text-align: justify;">
	Composite CAMELS Rating= C (0.25) + A (0.25) + M (0.25) + E (0.10) + L (0.10) + S (0.05)</p>
<p style="text-align: justify;">
	Each of the above six parameters can be weighted on a scale of 1 to 100 and contains a number of sub-parameters with individual weightage.</p>
<p style="text-align: justify;">
	The EAGLES system is able to measure and compare banks’ performance in a more determinate, objective and consistent manner. The name is derived from the key success factors confronting banks today, i.e. Earning Ability, Asset quality, Growth, Liquidity, Equity and Strategy. This approach has gained credibility among the banking community and fund management industry in Asia, for competition analysis and investment planning, respectively.</p>
<p style="text-align: justify;">
	<img alt="Sectoral, march 2013" height="514" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_sectoral_banks_ratios.jpg" width="580" /></p>
<p style="text-align: justify;">
	<strong>EAGLES evaluate banks on the following six parameters:</strong></p>
<ol>
	<li style="text-align: justify;">
		<strong>Earning Ability:</strong> Earning ability is shown by three noteworthy indicators – Return on Assets (ROA), Return on Shareholders’ Fund (ROSF) and Income/Overheads Ratio (IOR). The importance of IOR is usually not well understood. The main point lies in that income depends on external market forces, while overheads are highly influenced by internal staffing. So, the banks must know how to adjust the staffing according to the market demand for its products and services. This is shown by three indicators - ROA, Return on Net worth (RONW) and IOR.</li>
	<li style="text-align: justify;">
		<strong>Asset Quality:</strong> Asset quality is best assessed by on-site inspection of the bank’s loan portfolio. If this is not possible, asset quality can be measured by the level of bad debt provisions, that is, bad and doubtful debts (BDD) as a percentage of total loans. A conservative approach will dictate that the quantum of provision to err on the high side is rather low. This is best judged by the level of bad debt provisions, that is, bad and doubtful debts as a percentage of total loans. A conservative approach will dictate that the quantum of provision is on the high side is rather low.</li>
	<li style="text-align: justify;">
		<strong>Growth: </strong>Growth rates of loans and core deposits are the most important indicators of how a bank wants to position itself in the market.</li>
	<li style="text-align: justify;">
		<strong>Liquidity:</strong> Liquidity can be described as the ability of a bank to have sufficient funds to meet cash demands for loans, deposit withdrawals and operating expenses. For this reason, a balance should be made between the amount of deposits garnered and the quantum of loans extended. The indicator is the deposit-to-loan ratio or credit-deposit ratio (CD Ratio).</li>
	<li style="text-align: justify;">
		<strong>Equity:</strong> Equity level and capital adequacy have a profound impact on the bank. International guideline (Basel II) stipulates that a bank must have a minimum capital equivalent to 8 per cent of the risk adjusted assets. Even the central bank of Nepal, the NRB, has mentioned a comfort zone of 6 and 10 per cent of core capital and total capital funds, respectively, based on the risk-weight assets (percent).</li>
	<li style="text-align: justify;">
		<strong>Strategy:</strong> The effective management of a bank’s strategy is indicated by the strategic response quotient (SRQ). It assesses the management’s ability to lend, garner deposits, generate fee-based income and manage the operating cost. An appropriate balance of the three core banking activities depends on the bank’s strategy. The SRQ is obtained by dividing the interest margin by net operating cost (that is, total operating cost minus fee income).</li>
</ol>
<p style="text-align: justify;">
	Seventeen banks could not feature on the top-ten list under both ratings. The banks with negative capital adequacy ratio and very low return on assets were seen behind in ranking under CAMELS rating. &nbsp;Similarly, the banks with huge amount of non-performing loan and negative return on assets were seen at the lowest rank under EAGLES rating.</p>',
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of the newly opened bank has helped them to put at top position.',
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<p>
	<img alt="Sumit Kedia, Personality, March 2013" height="432" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_personality_sumit.jpg" width="450" /></p>
<p>
	Sumit Kedia, the Executive Director of Kedia Group and the Director of Sita Ram Gokul Milks Ktm Ltd, vividly remembers the time when his company was deep in debt and was on the verge of being sold out. “Those were the most stressful times of my life. The Bank had no trust upon us, and the entire Group was about to be blacklisted,” recalls Kedia. It all happened immediately after he joined the company after completing his studies.&nbsp;</p>
<p>
	<strong>Making first moves</strong></p>
<p>
	New to the business and the entire business scenario of Nepal back then, Kedia says he was overwhelmed by the situation at first. Gradually, he with the help of the Group was able to convince the banks to give some leverage to the company. One of the banks agreed to swap the loan and with some arrangement, he was able to pay off the entire loan after some time.&nbsp;</p>
<p>
	On the management part, he made the backward linkage strong by directly interacting with the farmers and thus, creating an economic interdependence. This, in turn, improved the quality and quantity of the raw material. “I personally met the farmers; I went to cow sheds and educated them. As a result, we received better quality raw material and enjoyed more security than our competitors,” explains Kedia. He also introduced new technology and updated the equipments used in the factory. This significantly enhanced the efficiency and the cost of production went down as well.</p>
<p>
	<strong>Carving a niche</strong></p>
<p>
	All of Kedia’s efforts have finally paid off. Today, Sita Ram Gokul Milks, a sister concern of Kedia Group is nation’s leading dairy processor and distributor, with production capacity of more than 2.86 million gallons of milk per year. The company has completed the journey of 17 years, and operates through a highly advanced technological plant with latest machineries producing milk and dairy products like milk, ghee and butter. The company is all set to produce flavoured milk and paneer within the next month. &nbsp;</p>
<p>
	Kedia firmly believes that responsibility with accountability is the mantra to success. “Nothing can be achieved alone, but a responsible and accountable team working for a common goal can achieve almost anything,” says Kedia. Kedia has been taking care of Sita Ram Gokul Milks for the last 10 years.&nbsp;</p>
<p>
	<strong>Memory lane</strong></p>
<p>
	Born to Bishwa Nath Kedia and Krishna Devi Kedia in Birgunj in 1976, Kedia did his entire schooling and higher education in India. During his school years, he was a hostel student in Darjeeling and Mussoorie. He completed his high school in Delhi and graduated from DAV College in Chandigadh, and completed his post graduation in MBA from Symbiosis Institute of Business Management of Pune.&nbsp;</p>
<p>
	As a child, most of his time was spent in hostel. “I used to come home only for holidays, so found it hard to adjust with my family. I was more comfortable with my friends than with my family,” recalls Kedia. He was home only for a few months in a year and also was oblivious of the development of the family group, Kedia Group.</p>
<p>
	After completing his education, he returned home and all of a sudden he was in family atmosphere that he wasn’t much used to, and also was into business abruptly. “I really found it hard to manage the three major parts of my life, my friends circle, my family and my business. &nbsp;But today, I have balanced all three aspects of my life,” says Kedia. &nbsp;As he became more involved with family and business, his friends circle shrunk. Today, Kedia says family and business are his top priority.&nbsp;</p>
<p>
	Married for 10 years with Ritu Kedia, Kedia is a father of a son and a daughter, Rachit Kedia and Shristi Kedia. His marriage was an arranged one and he didn’t even know her wife very well before marriage. “We were given just half an hour to discuss and decide. Within that short time, I fell in love with her eyes, and I immediately said yes. I’m happy I made the right decision,” shared Kedia.&nbsp;</p>
<p>
	<strong>Social involvement</strong></p>
<p>
	Kedia is involved with Round Table Nepal, an international fraternity with both business and family gatherings. “In this fraternity, there are people from business community and also their families. This has given me friends for life, with same wavelength. We go on various outings and picnics through the fraternity,” says Kedia. &nbsp;He usually spends his evenings and weekends with the friends of the fraternity, but still feels there is nothing like childhood friends. &nbsp;Kedia is also the First Vice President of Nepal Dairy Association and has been the Director of National Dairy Development Board for two tenures.&nbsp;</p>
<p>
	<strong>Finding inner peace</strong></p>
<p>
	&nbsp;As a student, Kedia loved to play basketball and was also in the college team. “I’d still love to play now, but my business doesn’t really allow me to do that anymore. However, after a stressful day, I like to give some time only to myself,” says he. He is a member of health club in Radisson hotel, loves swimming sauna and steam, and does cardio exercises. Kedia says he isn’t much into books, watches movies at times, doesn’t really care about gadgets. “I’m a simple person with simple desires; I want to lead a simple and modest life. I don’t believe in showing off and pretence. Kedia travels for work and leisure, but thinks he needs to take more vacations “I need to improve this part of my life. I don’t take many vacations. I’m trying to do it this year, may be ill go to Switzerland this year with my family,” says Kedia. &nbsp;&nbsp;</p>
<p>
	<strong>Changed dream</strong></p>
<p>
	Growing up, Kedia had dreams of being in hospitality and tourism business. He dreamt of owning a hotel as a graduate student and he even applied to study Hotel Management in Switzerland after graduating, but says it didn’t work out. Life had other plans for him. “As a member of a huge joint family, family’s dreams and decision always meant more than that of a member. Family’s decision mattered more to me, and I was needed in the group. So, I gave up my dream for my family,” shared Kedia.&nbsp;</p>
<p>
	<strong>Experience speaks</strong></p>
<p>
	Introvert by nature, Kedia says he is a shy guy. Once he was invited as a chief guest at a co-operative’s AGM. He had to give a speech in public, but he became very nervous and he completely blacked out. “I don’t even remember what I said there. With time, I improved my public speaking skills and I have no problem with that today,” says Kedia.&nbsp;</p>
<p>
	Kedia sees Vinod Chaudhary is his idol, and says his struggle and success has always been an inspiration to him. &nbsp;Kedia had family relations with Chaudhary, and personally knew him as he is also a member of Young Entrepreneur Forum (YEF) under Confederation of Nepalese Industries (CNI). He also sees Shankar Lal Kedia, his uncle as idol within his family.&nbsp;</p>
<p>
	Kedia opines that capital should stay within the country, regardless of the challenges faced by businessmen and entrepreneurs. According to him, rather than criticising the government and society, one should maintain a positive mentality and enhance the economy with a combined team spirit. He also feels that the spirit of ‘us’ is needed for development of a family, an organisation and an entire nation.</p>
<p>
	<strong>Foreseeable future</strong></p>
<p>
	As for his future plans, Kedia is not in investment mode now, as he feels there is no stability in the country. He thinks at such a point, it’s wise to retain what he has. New ventures may be started only after the problem of labour and load shedding are over. &nbsp;</p>
<p>
	Kedia says he loves his profession, and work is his worship. He feels that he needs to do something for the company till he retires. “I work together with all my staffs, all my team, not just my personal growth, but also for their growth, I like to see through the perspective of ‘us’ rather than ‘me’. I like to create a win-win situation for all,” says Kedia.&nbsp;</p>
<p>
	Kedia says that if all goes well, he may also be involved in the hospitality business. “After all, fulfilments of inner desires give you true satisfaction. It was always my dream to be in the sector. Let’s see what future has in store,” Kedia is optimistic.</p>
<div style="text-align: justify;">
	<img alt="Sumit Kedia with Family" height="378" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_personality_sumit_with_family.jpg" width="514" /></div>',
			'published' => true,
			'created' => '2013-03-23',
			'modified' => '2013-04-17',
			'keywords' => '',
			'description' => 'Life always has equal share of success and failure, one should never forget his roots when he is on top of success and one shouldn’t let the fire inside him die out when faced by failure, says Sumit Kedia a young business person, rephrasing what he learnt from his uncle Shankar Lal Kedia.',
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	(int) 3 => array(
		'Article' => array(
			'id' => '885',
			'article_category_id' => '48',
			'title' => 'Poems By Professionals',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	Nepal&rsquo;s business community has now ample time for rejuvenated aesthetic sense and cascading creativity as there is no business, no money and virtually no work as country reels under seemingly never-ending uncertainty. Many businessmen and professionals have thus tried to solace themselves by expressing pangs and pains in poetry. Here are few scattered pieces of poems taken from their diary. Please read them all:</p>
<p>
	&nbsp;</p>
<p>
	&nbsp;</p>
<p>
	<strong>From a banker:</strong></p>
<p>
	<em>A liquidity crisis again envelops&nbsp;</em></p>
<p>
	<em>Base rate, KYC, Basel III to adhere</em></p>
<p>
	<em>In a market highly flawed</em></p>
<p>
	<em>By the grace of self declared Gods.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a realtor:</strong></p>
<p>
	<em>It boggles me how fast</em></p>
<p>
	<em>The land under me caved in</em></p>
<p>
	<em>Why all fingers pointed to me</em></p>
<p>
	<em>Not the chaps aired the bubble first?</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a jeweler:</strong></p>
<p>
	<em>Random walk of &nbsp;price of gold</em></p>
<p>
	<em>Sellers are at the hold</em></p>
<p>
	<em>Buyers feel over-sold.</em></p>
<p>
	<em>But the reality is never told.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From an investor:</strong></p>
<p>
	<em>Just look at the NEPSE index</em></p>
<p>
	<em>Leaves anyone always perplexed</em></p>
<p>
	<em>As market is bullish taking on risk</em></p>
<p>
	<em>Erring politics smashes it in brisk.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From an economist:</strong></p>
<p>
	<em>The affair of the state is iffy&nbsp;</em></p>
<p>
	<em>The guardian angels acting sneaky&nbsp;</em></p>
<p>
	<em>The mood is damp, almost piffy</em></p>
<p>
	<em>And economy stands fiscal cliffy.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a wage-earner:</strong></p>
<p>
	<em>No job, what else to mention?&nbsp;</em></p>
<p>
	<em>No relief from perennial privation,</em></p>
<p>
	<em>The minimum wage in the nation</em></p>
<p>
	<em>Is never tied to the rate of inflation.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a business leader:</strong></p>
<p>
	<em>We must certainly preface&nbsp;</em></p>
<p>
	<em>Taxing few honest and rich</em></p>
<p>
	<em>As the socialists these days profess</em></p>
<p>
	<em>Will not fill ravine of whopping deficit.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a social planner:</strong></p>
<p>
	<em>We are finding it absurd</em></p>
<p>
	<em>Plans we heard were never delivered</em></p>
<p>
	<em>But all the party comrades did prosper&nbsp;</em></p>
<p>
	<em>People left to have suicide preferred.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a political economist</strong></p>
<p>
	<em>When will parties exhibit maturity?</em></p>
<p>
	<em>Help create stable income and security</em></p>
<p>
	<em>So there could be a sense of certainty&nbsp;</em></p>
<p>
	<em>And markets start to behave with surety.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a planner:</strong></p>
<p>
	<em>Do policy makers really have any plan</em></p>
<p>
	<em>On jobs, inflation and population?</em></p>
<p>
	<em>If it isn&rsquo;t the leaders concern&nbsp;</em></p>
<p>
	<em>What if we lose our temper soon?</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>Finally, from a voter:</strong></p>
<p>
	<em>Our ears can&rsquo;t hear anymore sermon</em></p>
<p>
	<em>About job creation and developed nation.</em></p>
<p>
	<em>We need more apprenticeship skills</em></p>
<p>
	<em>That meets our needs and fixes growth ills.&nbsp;</em></p>
<p>
	<em>Is there anybody to listen?</em></p>
<div>
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-03-23',
			'modified' => '2013-10-21',
			'keywords' => '',
			'description' => 'Nepal’s business community has now ample time for rejuvenated aesthetic sense and cascading creativity as there is no business, no money and virtually no work as country reels under seemingly never-ending uncertainty.',
			'sortorder' => '769',
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	),
	(int) 4 => array(
		'Article' => array(
			'id' => '884',
			'article_category_id' => '45',
			'title' => 'Corporate Movements February 2013',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="color:#f00;"><strong><span style="font-size: 16px;">Newcomers</span></strong></span></p>
<p>
	<img align="left" alt="Jhalak Prasad Khanal" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/jhalak_corporate_movements_feb2013.jpg" style="margin: 0px 10px 0px 0px;" width="100" /></p>
<p>
	<strong>Jhalak Prasad Khanal</strong>has joined Vibor Bikas Bank Ltd as CEO after Ajay Ghimire, the founding CEO of the bank resigned last month. Earlier, Khanal was CEO of Siddhartha Development Bank.</p>
<p>
	 </p>
<p>
	 </p>
<p>
	 </p>
<p>
	<img align="left" alt="Ramesh Ghimire" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/ramesh_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /><strong>Ramesh Ghimire&nbsp;</strong>has joined Sarada Group (SPG Trading Pvt Ltd.) as Chief - Sales &amp; Marketing. Earlier, he was Head – Sales &amp; Marketing at Robin Export Import Marketing Pvt. Ltd.</p>
<p>
	 </p>
<p>
	 </p>
<p>
	 </p>
<p>
	<img align="left" alt="Sanjay Ballav Pant" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sanjay_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /><strong>Sanjay Ballav Pant&nbsp;</strong>has joined Standard Chartered Bank Limited as Head of Audit. Earlier, he was at Janata Bank as Head of Audit.&nbsp;</p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	 </p>
<p>
	 </p>
<p>
	<strong>Dr Khem Raj Bhetwal</strong> has joined Rising Development Bank Limited, Narayangarh as CEO.</p>
<p>
	 </p>
<p>
	<strong>Milan Mani Sharma </strong>has joined Ncell as Spokesperson. Earlier, he was Bureau Chief at The Republica English daily.</p>
<p>
	 </p>
<p>
	<img align="left" alt="Mani Ram Pokhrel" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/mani_corporate_movements_feb2013.jpg" style="margin: 0px 10px 0px 0px;" width="100" /></p>
<p>
	<strong>Mani Ram Pokharel&nbsp;</strong>has been appointed as Chief Executive Officer at Sambridhi Bikas Bank Ltd., Gajuri. Earlier he was Chief Business Officer at H &amp; B Development Bank Ltd. Kathmandu.</p>
<p>
	 </p>
<p>
	 </p>
<p>
	 </p>
<p>
	<strong style="font-size: 16px; color: rgb(255, 0, 0);">Newcomers at Sunny Distillery Pvt. Ltd.</strong></p>
<p>
	<strong><img align="left" alt="Alok Baral" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/alok_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /></strong></p>
<p>
	<strong>Alok Baral</strong> has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Govinda Kumar Shrestha" height="121" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/govinda_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Govinda Kumar Shrestha&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Luv Dhoj KC" height="120" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/luv_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Luv Dhoj KC&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Narayan Baral" height="120" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/narayan_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Narayan Baral&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Santosh Raj KC" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/santosh_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Santosh Raj KC&nbsp;</strong>has joined Sunny distillery Pvt Ltd as a Head-Trade &amp; Marketing, Earlier he was Sr. TSE at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Suman Maharjan" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/suman_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Suman Maharjan&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Robin Shrestha" height="122" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/robin_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Robin Shrestha&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sr. Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>Ramesh Shrestha&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<span style="color:#f00;"><span style="font-size: 16px;"><strong>Promotions</strong></span></span></p>
<p>
	<strong><img align="left" alt="Hari Sharma Neupane" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/hari_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /></strong></p>
<p>
	<strong>Hari Sharma Neupane</strong> has been promoted as Regional General Manager for Bottlers Nepal (Terai) Ltd. Earlier, he was Country Human Resource Manager in Bottlers Nepal Ltd.</p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Bala Ram Bista" height="121" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/bala_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Bala Ram Bista&nbsp;</strong>has been promoted as General Manager of Sunrise Bank Limited. Earlier, he was Deputy General Manager at Sunrise Bank’s head office.</p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Prakriti Tuladhar" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/prakriti_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Prakriti Tuladhar&nbsp;</strong>has been promoted as Finance Controller of Bottlers Nepal Limited. Earlier, she was Regional Finance Manager.&nbsp;</p>
<p>
	<strong><span style="font-size:16px;"><br />
	</span></strong></p>
<p>
	<strong><span style="font-size:16px;"><br />
	</span></strong></p>
<p>
	<strong><span style="font-size:16px;"><br />
	</span></strong></p>
<p>
	<strong><span style="font-size:16px;"><br />
	</span></strong></p>
<p>
	<strong><span style="font-size:16px;">Resignations</span></strong></p>
<p>
	<strong><img align="left" alt="Rabin Shrestha" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/rabin_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /></strong></p>
<p>
	<strong>Rabin Shrestha</strong> has resigned from Standard Chartered Bank Limited as the Head of Audit.</p>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>',
			'published' => true,
			'created' => '2013-03-16',
			'modified' => '2013-03-16',
			'keywords' => '',
			'description' => 'Corporate Movements for the month of February',
			'sortorder' => '768',
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	(int) 5 => array(
		'Article' => array(
			'id' => '879',
			'article_category_id' => '57',
			'title' => 'Replica Of Brands',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Sajag Karki</strong></p>
<p>
	<img align="right" alt="Brand Talk, February 2013" height="674" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/brand_talk_feb2013.jpg" style="margin:0 0 0 10px;" width="220" /></p>
<p style="text-align: justify;">
	Nike, Reebok, Ray Ban, Gucci, Armani - you name it and there are replicas of every brand imaginable. There are many such replicas of brands available which people tend to purchase knowingly or unknowingly as the original one. One may think what difference would it make and who could identify the real one? Well, one might be right for all of them look the same at a glance. Also, the replicas give huge respite to those consumers who cannot afford the real offering of the brand. Hence, there is a huge market for this ranging from high quality replicas to the dirt-cheap ones. However, fake is fake and if one takes a closer look at it, one can easily identify and feel the difference. The fake ones have blurred logos, bad packaging, inferior materials which could even harm the user. People who are loyal to their brands and who know the essence of brand always buy the original products no matter how high the cost may be. It is not just about sporting a fake logo in the product, for them it’s about their association with the brand which gives them their identity. In western countries like in the US there are tougher laws that protect from replicating branded products. Intellectual property like movies and any other creative work also have copyrights.&nbsp;</p>
<p style="text-align: justify;">
	It’s no big secret that copies of brands are easily available in the market with varying degree of quality. Every now and then we hear about logos being copied from well known companies. This is a shame to the business and an insult to the creativity of the designer. Business law states that a registered trademark cannot be used by others especially if it is of a well-known one because of its familiarity. Even the prevailing Nepali law states that the same name cannot be used by two different companies. Similarly, similar names that could confuse a customer, too, should be avoided. A logo, say of McDonalds, cannot be copied as it is a well known icon. You can get a Ray Ban for as cheap as anything from a roadside vendor while the original product bought from its branded showroom costs ten times more. There is undoubtedly a significant market for consumers of such fake products, thanks to the “Made in China” brand which mass-produces copies of almost all big brands. As there are no strict rules followed by the concerned authorities regarding patent rights, nobody seems to care about it and people are happy with the replicas. “Do as Romans do in Rome” seems to have become the norm.&nbsp;</p>
<p style="text-align: justify;">
	Looking at the practical side of things, it wouldn’t have been possible for consumers of many developing countries to purchase branded products if it weren’t for the much affordable replicas. Hence, with high quality replicas people are able to quench their thirst for their favourite brands which would have otherwise not been feasible. Thousands of people use these products every day, thanks to the leverage of the original brands that has made it possible.&nbsp;</p>
<p style="">
	<span style="font-size:11px;">The Article is based on research and author’s practical experience as a marketing and advertising professional. He can be reached at sajag_karki@hotmail.com.</span></p>',
			'published' => true,
			'created' => '2013-03-16',
			'modified' => '2013-03-16',
			'keywords' => '',
			'description' => 'There are many such replicas of brands available which people 
tend to purchase knowingly or unknowingly as the original one.',
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	(int) 6 => array(
		'Article' => array(
			'id' => '878',
			'article_category_id' => '41',
			'title' => 'Days Of Pure Portland Cement Gone Forever Time For PPC/PSP (Blended Cement)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Rajendra Prakash Manandhar</strong></p>
<p style="text-align: justify;">
	In 1984, I had just returned to Kathmandu after studying Cement Technology (1st batch) at CRI/NCB India. One of my friends asked me about the best type of cement which would last long and resist the polluted environment. We have seen in many toilets, drainpipes, roofs of buildings and other different places the cement plaster being deteriorated by urine, domestic waste, heat, polluted environment etc. I was once in a paper factory in Nepal. The factory had two concrete tanks, plastered with OPC cement. One tank was used for cold water and the other for warm water. The plaster in the warm water tank was cracked &amp; falling, but nothing had happened to the cold tank. At our homes, we notice water leaking and its spot spreading on the concrete ceiling. At many other places, we see hair cracks on the plastered wall. These are some of the common problems with OPC. The best way to minimize such problems is to use PPC/PSC instead of OPC.</p>
<p style="text-align: justify;">
	During the 9th International Congress on the Chemistry of Cement, New Delhi, India in 1992, one of the delegates had presented some video clips showing the difference between OPC &amp; PPC. The clips showed that two cement bars - one made of OPC and the other with PPC were kept immersed in water for 15 years. Both the bars had a steel rod inside. After 15 yrs, when the bars were opened, it was found that the steel rod in the PPC bar was fresh and Shinning like &nbsp;before, but the steel rod inside the OPC bar was found corroded and damaged. Thus the clips demonstrated the quality of PPC.</p>
<p style="text-align: justify;">
	AM Neville, an expert from world authority on cement &amp; concrete puts his view on PPC use: “The various cementitious materials- fly ash, silica fume, blast furnace slag, are here to stay. In their various ways and under various circumstances, they all have an important role to play in concrete, the days of Pure Portland Cement, once upon a time lauded by cement manufacturers have gone forever. Portland is vital ingredient, but the other cementitious materials are highly valuable”.</p>
<p style="text-align: justify;">
	A Pozzolanic cement consisting of ground clay and portland cement was described in 1909 by Potter, who stated that over 5000 tons of it were used in fresh water and seawater construction about that time. Later, this cement was known as Potter Cement. For many years up to about 1915, the Lafarge Company in France used burnt clay in to manufacture ‘undecomposable’ cement. A cement composed of 70 per cent Portland cement &amp; 30 percent burnt clay was used to build the Sennar Dam on the Blue Nile from 1919 to 1925. The same material (Oil-well Cements manufactured in Great Britain) was used in construction of the Bonneville Dam in the USA. Burnt clay, an excellent artificial Pozzolana, is produced by burning suitable clay or shale at a temperature of 600° to 900° and above. Artifical pozzolanas &nbsp;are burnt clays and shales, spent oil shales, burnt maize/ rice husks, burnt moler and pulverized fuel ‘fly ash’ whereas volcanic deposits are natural Pozzolana.</p>
<p>
	<strong>Effect of pozzolana addition on hydration and performance of PSC</strong></p>
<p style="text-align: justify;">
	Pozzolana was added (5-25% by weight) to the binary blends (OPC + Slag) and the resulting ternary blends were subjected to hydration and the performance was studied. The results indicated that addition of Pozzolana up to 10 per cent does not affect the properties of the binary system significations. It has also been observed that the ternary blends show better sulphate resistance compared to the binary blends.&nbsp;</p>
<p style="text-align: justify;">
	The production and use of blended cement, especially PPC, has gradually increased worldwide in recent years. Its larger use in different countries is an indicator of its acceptability as well as suitability for various types of construction. Industrial wastes or the by–product ‘fly ash’ from thermal power stations and slag from steel plants are used for making blended cements such as Portland Pozzolana Cement (PPC) and Portlant Slag Cement (PSC). More than 50 per cent of the blended cements produced is PPC today. Blended cements such as PPC and PSC offer unique advantages to the concrete. In other words, PPC is better than OPC in terms of quality, and strength, and has &nbsp;a longer life than OPC. We could compare these unique characters of PPC with the antibodies in the human body that protect from different diseases.&nbsp;</p>
<p>
	<strong>OPC is made by grinding Clinker and Gypsum&nbsp;</strong></p>
<p style="text-align: justify;">
	One ton of clinker requires approx 1.5 tons of limestone whose reserves are limited. PPC/PSC is manufactured by grinding clinker with fly ash/slag and gypsum or blending OPC with fly ash and slag. Thus, limestone consumption can be reduced by producing PPC/PSC.</p>
<p>
	OPC:<span class="Apple-tab-span" style="white-space: pre;"> </span>Clinker 95%+ Gypsum 5%</p>
<p>
	PPC:<span class="Apple-tab-span" style="white-space:pre"> </span>Clinker 70% + Gypsum 5% + Fly ash 25%</p>
<p>
	PSC:<span class="Apple-tab-span" style="white-space:pre"> </span>Clinker 45% + Gypsum 5% + Slag 50%, (depending upon quality of Slag)&nbsp;</p>
<p style="text-align: justify;">
	Nepal Bureau of Standard has formulated the standard for PPC and PSC. PPC/PSC produced has to meet the quality parameters laid down for specific cement type. Generally engineers/ consultant/ and builders contractors decide on the type of cement to be used in the construction of houses, building roads, water tanks etc. Design parameter, types of construction, ground condition, durability requirement and environmental conditions are important factors while selecting the appropriate type of cement for any application.</p>
<p>
	<strong>Extra Qualities Benefit of PPC</strong></p>
<p style="text-align: justify;">
	PPC provides numerous environmental benefits such as conservation of limestone, reduction in green house gases in cement manufacturing and utilization of industrial wastes/ by-products &nbsp;- fly ash. It thus increases production of cement in the country. The government can take more benefit by collecting more tax on technical grounds and economics. There is a sound case for use of PPC in concrete due to:</p>
<ul>
	<li>
		Water resistance due to high density concrete</li>
	<li>
		Improves workability of concrete&nbsp;</li>
	<li>
		Reduces bleeding&nbsp;</li>
	<li>
		Reduces heat of hydration preventing cracks</li>
	<li>
		No need to add any plasticizer like cement silica.&nbsp;</li>
	<li>
		Higher bang ultimate strength</li>
	<li>
		Reduces permeability of concrete enhanced&nbsp;</li>
	<li>
		Gives strength, has higher durability than OPC</li>
	<li>
		Higher resistance to sulphate and chloride&nbsp;</li>
	<li>
		Better resistance to alkali – aggregate reaction&nbsp;</li>
	<li>
		Reduces leaching calcium hydroxide&nbsp;</li>
	<li>
		Low volume (shrinkage) change preventing cracks.</li>
</ul>
<p style="text-align: justify;">
	Hydration of Ordinary Portland Cement (OPC): Hydration is the chemical process by which slilicates and aluminates of the cement clinker, when mixed with water, form hydrated compounds and during the course of reaction produce Calcium Hydroxide and Calcium Silicate Hydrate as shown in the following chemical equation:</p>
<p>
	<strong>Cement + Water→C-S-H + Ca (OH) 2</strong></p>
<p style="text-align: justify;">
	The compound Ca (OH) 2 being easily soluble in water leaches out of the concrete surface. This leached Ca (OH)2 deposits on the surface as a coating layer cause deterioration of the concrete.</p>
<p>
	<strong>Hydration of Portland Pozzolana Cement /Portland Slag Cement: &nbsp;</strong></p>
<p style="text-align: justify;">
	When water is added to PPC/PSC, hydration of OPC constituents occurs first. This is known as primary hydration. During this process, the calcium silicates of OPC reacts with water to produce Calcium Silicate Hydrate gel and Calcium Hydroxide. Subsequently, fly-ash / slag present in cement hydrate in presence of Ca (OH) 2 produced during OPC hydration, produces further Calcium Silicate Hydrates. This process is known as secondary hydration. This makes the hydrated silicate gel structure of PPC/PSC more denser and contributes to higher durability of the concrete. But in OPC hydration, the liberated Ca(OH)2 forms a coating layer on the concrete, which is weak and is therefore removed by external pollutants/environment causing deterioration of the concrete. But this Ca(OH)2 is utilized in PPC/PSC in formation of C-S-H (II) which is &nbsp;stronger than C-S-H(I) thus reinforcing the original silicate gel (I) to produce a much denser gel structure which contributes to a higher degree of strength and durability. More and more Ca (OH) 2 is &nbsp;absorbed preventing formation of coating as shown in the following chemical equations: &nbsp;&nbsp;</p>
<p>
	<strong>Clinker + Water → C-S-H (I) + Ca (OH) 2</strong></p>
<p>
	<strong>Ca (OH)2 + Fly Ash/ Slag → C-S-H (II)</strong></p>
<p>
	Concrete is not a structural material by itself but it slowly evolves into a structural material in four &nbsp;stages which are: &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;</p>
<p>
	<strong>1-Plastic, 2- Stiffening (setting), 3- Hardening, 4- Enduring</strong></p>
<p style="text-align: justify;">
	<img alt="Cement, Sectoral February 2013" height="276" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_rajendra_prakash_feb2013.jpg" width="580" /></p>
<p style="text-align: justify;">
	In the plastic stage of concrete, the fineness and initial setting time is important. In the stiffening stage, final setting time is important. Tri–Calcium aluminate (C3A) of cement helps in this. In the hardening stage, C3S, C2S, strength and fineness are of vital importance. But the most important stage for durability of the concrete structure is the enduring stage. In this stage, the high quality cement parameters balanced physical and chemical parameters, high strength, low impurities, high soundness, optimum fineness etc can only contribute to the durability and high performance of the concrete structure. Today’s needs are not only high 28-day strength of cement but also high quality cement with (TOTAL QUALITY ATTRIBUTS) EXTRA QUALITY BENEFITS other than strength. These benefits are the resultant products of best clinker &amp; fly ash/ slag of high quality and gypsum in desired proportion to achieve high ultimate physical/ chemical properties. There are a number of parameters to be controlled as inputs during clinker production. Among them, correct proportioning of oxides CaO, SiO2, Al2O3, Fe2O3 which is termed as raw mix design and proportioning raw materials is most important. The proportioning C3S, C2S, C3A, C4AF are fixed after raw mix design. The preferable ranges of these compounds are 45-55, 20-30, 5-8, 8-12 etc. Strict quality control of raw materials, cement, process control are to be carried out. In the same way, the blending material fly ash should be according to the parameter given by Nepal Standard NS285.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Application of PPC&nbsp;</strong></p>
<p style="text-align: justify;">
	PPC can be used in almost all kinds of construction where OPC is used. For example, general building construction (residential, commercial, and industrial), bridges, flyovers, culverts, dams, irrigation projects, water retaining structures, ports &amp; harbours’ etc - except where high early strength is critical. Taking into account the special properties of concrete made from PPC, there are specific types of job where the use of PPC would be particularly advantageous. These are:</p>
<ul>
	<li>
		Mass concrete used for dams, bridges, piers etc where low heat of hydration is desirable</li>
	<li>
		In hydraulic structures where water tightness is desired</li>
	<li>
		Concrete in saline environment such as pole foundation works etc</li>
	<li>
		In marine structure where impermeability and resistance to attack by sea water are important</li>
	<li>
		In sewers and other structure subject to acidic or sulphate attack</li>
	<li>
		In construction of swimming pools</li>
	<li>
		In construction of stadia where durability and ultimate &nbsp;high strength is &nbsp;required</li>
</ul>
<p style="text-align: justify;">
	Some construction engineers believe that the concrete made with PPC needs longer curing than OPC concrete. Actually, however, curing is required for all types of cement as long as possible. Some paints the concrete with oil, others cover it. Anyway the water mixed during casting the concrete is to preserve/save from evaporation due to atmospheric temperature.</p>
<div>
	<img alt="Sectoral February 2013" height="189" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_rajendra_prakash_feb2013(2).jpg" width="580" /></div>
<div>
	 </div>
<div>
	<div style="text-align: justify;">
		In major constructions, consumers/users hesitate to use Nepali cement except for a few brands. In order to substitute the import of cement, cement manufacturers have to be honest in qualities, attributes or extra quality benefits. Also, the Cement Association of Nepal has to commit fully to manufacture high quality and healthy cement which may have a long life and may also compete with the imported cement. Hence, the Association has to play a significant role in promoting PPC and highlight its usefulness. It can create awareness in the government, builders, users, contractors, construction engineers etc. That will also help to dispel the apprehension with regards to using PPC for construction works.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		PPC offers several unique advantages to the concrete and has gained universal acceptance. This article gives information on different aspects of PPC such as historical facts, its short chemistry, production, applications, and advantages. The concerned government authorities, designers etc are required to make a conscious choice between OPC and PPC according to the application and requirement and recommend using PPC in all construction works. Construction needs are durability against increased pollution level and environment effects.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		In some plants in Nepal, the clinker produced from a vertical shaft kiln (VSK) is mixed with rotary kiln clinker to produce cement. In one clinker plant in Nepal, imported cement is mixed during cement production. Also we have seen/heard that imported or other cements are mixed with Nepali (local) cement in construction. A cement plant owner in western Nepal has used imported cement to build his own building. A proper raw mix design and proportioning raw materials produces the best cement clinker, and there is no need to mix other clinker/cement to increase the so-called “SHAKTI” (strength) of cement.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Finally, for manufacturing PPC, clinker quality is of primary importance. To avoid illusion over VSK clinker Quality and to boost the morale of VSK owner and interested potential parties, here are some compressive strength data which are being received from the trial production of a modern VSK 500 ton per day plant of Rolpa Cement (P) Ltd. It is indeed a surprising data, not easily believable. A right “Raw Mix Design” (For VSK/ rotary kiln) is a manufacturing prescription to produce the best clinker which contributes in durability of PPC concrete after mixing with Pozzolana (fly ash). It is also a fact that 60 per cent of cement in China is produced from VSK. Productivity is a state of mind whereas making a Megh Quality Clinker is an art.</div>
	<div style="text-align: justify;">
		 </div>
	<div>
		<span style="font-size:11px;">The author has worked at Himal Cement, Jagadamba Cement, Siddhartha Cement, Cosmos Cement. At present, he is associated with Rolpa Cement (P) Ltd as Senior QC/Production Manager and can be contacted at rajendramdr@yahoo.com.&nbsp;</span></div>
</div>
<div style="text-align: justify;">
	 </div>',
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			'description' => 'PPC offers several unique advantages to the concrete and has gained universal acceptance. This article gives information on different aspects of PPC such as historical facts, its short chemistry, production, applications, and advantages.',
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			'id' => '877',
			'article_category_id' => '41',
			'title' => 'Responsible Business Endeavour',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong style="text-align: justify;">By Rajendra Desai</strong></p>
<p style="text-align: justify;">
	Nepal is bestowed with diversity in nature, religion, culture and people. This beautiful Himalayan country has witnessed a constantly changing social and economic dynamics over the years. In the last two decades, Nepal has made significant achievements in the national economy and the people’s standard of living.</p>
<p style="text-align: justify;">
	Statistics show that the poverty in Nepal has decreased from 42 per cent in 1995 to 26 per cent in 2011. Similarly, 12 per cent of the GDP is contributed by remittance. The country’s half population comprises of youth, that is energetic and young. Youth is the group which is considered the most productive among all age groups. These youths not only contribute to the society and the economy but also act as the decider of consuming new and trendy products and services.&nbsp;</p>
<p style="text-align: justify;">
	It’s a pleasure for a company, to be a partner in a country like Nepal and work with the people here. So, Kansai Nerolac Paints Ltd (KNPL), a subsidiary of Kansai Paints Company Ltd, Japan, commenced its operations in Nepal under the brand name Kansai Paints Nepal Pvt Ltd. Owing to Nepal’s progressive economy, Kansai Nerolac Paints Ltd (KNPL) acquired 68 per cent stake in Nepal Shalimar last year. KNPL has decided to utilise the manufacturing set up of Nepal Shalimar to manufacture Nerolac range of products which are imported currently in Nepal itself.&nbsp;</p>
<p style="text-align: justify;">
	The enhanced economic capabilities of the Nepali people have opened up tremendous market opportunities not only for paints but also for any other FMCG. Similarly, the young population makes a market with prospects for deeper penetration, and demand for new age products and services. The Nepali market has come up with scope for higher consumption along with increased attraction towards health-friendly products such as low or zero VOC paints.</p>
<p style="text-align: justify;">
	KNPL feels proud to have a presence in Nepal. Kansai Paints Company Ltd, Japan, having presence in about 17 countries, believes in transferring the expertise and superior range of products to the consumers in Nepal. This entry promises to provide products that are not only best in performance, but also safe and have minimum environmental impacts. Kansai Paints is the market leader in Japan and the eighth largest paint company of the world. Similarly, Kansai Nerolac in India is the second largest paint company of India.</p>
<p style="text-align: justify;">
	As of now, Nerolac in India has achieved a noteworthy success in the market. Statistics show that out of every 10 passenger cars, six are painted with products from Nerolac. Similarly, seven out of 10 premium cars, seven out of 10 utility vehicles, eight out of 10 auto rickshaws, eight out of 10 tractors, seven out of 10 scooters and seven out of 10 motorcycles in India are made beautiful with Kansai Nerolac paints.</p>
<p style="text-align: justify;">
	The company manufactures a diverse range of products &nbsp;- from decorative coatings for homes, offices, hospitals and hotels to sophisticated industrial coatings. The company believes in the concept of healthy homes. Kansai Nerolac paints are top notch products that do not have adverse impacts on health. They have antifungal traits, contain zero VOC, and are lead free and odourless. The company’s low VOC range of paints conforms to the strictest of International standards and has the NTH certification which compiles to a Green Seal -11 approval. Green Seal is an independent international agency which certifies green and environment-friendly products.</p>
<p style="text-align: justify;">
	Nerolac Impressions 24 Carat is one such Premium Luxury Emulsion that ensures a smooth velvety finish with sheen, excellent flow and brushability, washability and is stain-resistant. Along with it, the company produces award winning products to cater to every segment in the market.</p>
<p style="text-align: justify;">
	In today’s’ challenging marketing space, it is beyond imagination to succeed in the market without using the new media and the latest technologies to reach out to the targeted consumers. Our exclusive outlets and showrooms offer the customers an easy opportunity to choose and select the paints and colours of their choice. Likewise, the company has focused on 360 degree marketing by using various media such as hoardings, TV, Radio, Vehicles, Movie Theatres and Print Media.&nbsp;</p>
<p style="text-align: justify;">
	With a belief in inclusive growth, the company has always kept the contributions that can be made to the society at the centre while working anywhere in the world. Any business or economic growth should fuel the betterment of the society and people.</p>
<p style="text-align: justify;">
	<span style="font-size:11px;">The writer is the Country Head of Kansai Paints Nepal Limited.</span></p>',
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		'Article' => array(
			'id' => '875',
			'article_category_id' => '42',
			'title' => 'Politics Is Investors’ Focus',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Bikram Chitrakar</strong></p>
<p style="text-align: justify;">
	Secondary market slipped off the trend as political dealings and uncertainty cooled down investor’s sentiment. The benchmark Nepse index receded 19.73 points or 3.86% to settle at 510.88 while the session’s high was on 3rd Jan with 533.46 and lowest was on 20th Jan with 508.23.</p>
<p style="text-align: justify;">
	Growing political ambiguity and actions of opposition parties to hit the road with protest programmes against the government pulled the confidence level of the investors in the first month of 2013. The presence of Investors presence was discouraged by sequence of these events. Decrease in the turnover suggests the battered confidence of the investors.</p>
<p style="text-align: justify;">
	Market actions, as the second quarter reports of the listed companies started coming, indicated negative evaluation from the investors of these reports. This was particularly so of the banking and financial institutions.&nbsp;</p>
<p style="text-align: justify;">
	Securities Board of Nepal (SEBON) has issued directives to check the money laundering. This Anti-Money Laundering and Counter-terrorist Financial Directive 2069 provides that securities business person should inform the authorities if the daily transaction of an individual and firm exceeds Rs 1 million. Similarly, other capital market participants are also ordered to keep proper records so as to detect if the source of the investment is suspicious.&nbsp;</p>
<p style="text-align: justify;">
	Performance by Sector</p>
<p style="text-align: justify;">
	Commercial banking sector with dominant volume of trade in Nepal stock exchange descended 29.40 points or 5.98% to rest at 491.48. Hydropower sector skid 62.29 points or 6.33% to 983.9. Others sector lost 15.27 points along with 13.54% down in development bank to 763.65 and 245.94 respectively. Similarly, hydropower sector plunged 62.29 points or 6.33% to rest at 983.9 while finance sector went downhill 9.53% to 250.51. However hotels sector added 84.80 points or 12.51% to close at 677.8. Insurance sub-index gained 70.68 points or 8.67% to 815.24. Manufacturing sector moved higher by 9.04 points to rest at 860.13.</p>
<p style="text-align: justify;">
	Sensitive index that measures the performance of 133 blue chips scrip at secondary market cut off 1.80 points or 1.35% to 133.52 while the float index calculated on the basis of real transaction descended 1.30 points or 3.73% to 34.83. Total of Rs. 1,780,346,071 turnover was realized during the review period from 6,228,761 units of shares traded via 23354 transactions.</p>
<p style="text-align: justify;">
	The accompanying figure depicts the sector-wise distribution based on the total volume of trade. As usual, commercial banking sector accounted for 77.39% of total trade. Hydropower sector occupied 6.86% while development bank grabbed 5.87% and remaining sectors made up for the rest.</p>
<p style="text-align: justify;">
	Technically, the Simple Moving Average (SMA) showed shabby conditions in the short term as Nepse Index surged above the 30 Days SMA. However, in long term the 200 Days SMA seems helpless despite &nbsp;roaring movements. Key resistance test at the level of 510 can determine the further movement and new target level.&nbsp;</p>
<p style="text-align: justify;">
	<img alt="Stock Taking, Bikram Chitrakar" height="484" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/stocktaking_feb2013.jpg" style="font-size: 11px;" width="403" /><img alt="Stock Taking, Bikram Chitrakar" height="409" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/stocktaking_feb2013(2).jpg" style="font-size: 11px;" width="419" /><img alt="Stock Taking, Bikram Chitrakar" height="412" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/stocktaking_feb2013(3).jpg" style="font-size: 11px;" width="392" /></p>
<p style="text-align: justify;">
	<span style="font-size: 11px;">Chitrakar is a Stock Analyst with Jamb Technologies Pvt Ltd.</span></p>',
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the government pulled the confidence level of the investors in the first month of 2013.',
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			'id' => '874',
			'article_category_id' => '40',
			'title' => 'Insuring Nepal’s Aviation Risks',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Sushila Budhathoki</strong></p>
<p>
	<img alt="Cover Story February 2013" height="329" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_main_feb2013.jpg" width="550" /></p>
<p style="text-align: justify;">
	<span style="text-align: justify;">“The higher the risk, the higher the potential return,” goes a popular saying. The economic logic is however that the profit is higher when risks are minimized. And there comes the insurance business to help the other businesses to reduce risks. In the process, both insurance companies and their business clients become happy. But this does not seem to be the case in aviation portfolio of Nepali insurance companies. &nbsp;Although aviation insurance is a high profile business in Nepal, it happens to be one of the weakest portfolios for most insurance companies in terms of profit. The aviation insurance business looks good in terms of premium collection but there is hardly any profit.&nbsp;</span></p>
<p style="text-align: justify;">
	The reason is: the insurance companies providing aviation insurance have to pay a high amount of premium – more than 99 per cent at times - to the reinsurance companies abroad. In fact, the companies are sustaining their aviation insurance business from the commission they get for the premiums paid to the foreign reinsurers. Mahendra Shrestha, Managing Director of Himalayan General Insurance, says, “Whether it’s profit or loss, it goes to the reinsurance companies. We (local insurance companies) are just the intermediaries. And if we fail to reinsure, we cannot sustain the operation. So, we have to depend on reinsurance companies abroad. There is no other choice.”According to Shrestha, some insurance companies are paying up to 99.97 per cent of the premiums collected to the reinsurance companies. “It has been a non-profit business for even most of the reinsurers who have only two choices - walk away or keep doing business at high premium rates to recover previous losses,” he adds.&nbsp;</p>
<p style="text-align: justify;">
	A three-year data (From 2009/10- 2011/12) of Beema Samiti, too, depicts the pathetic condition of Nepali insurance companies in aviation portfolio. During this period, only a few companies could make some profits which however, is paltry (See table 1). Rameshwor Thapa, President of Airlines Operators Association of Nepal (AOAN), says, “Since this is a highly regulated and risky business, there can be loss or profit and the clients also contribute in both these factors.” There are altogether 25 insurance companies including 17 non-life insurance companies in Nepal. Among the non-life insurance companies, seven &nbsp;deal in aviation insurance (See table 2). Nepal insurance Company Ltd and Neco Insurance which were doing aviation insurance previously have pulled their hands from aviation portfolio now.</p>
<p style="text-align: justify;">
	Lack of domestic reinsurance companies and low retention capacity of Nepali insurance companies has resulted in huge amount going abroad as remittance premium. The Nepali airlines are paying around USD 8-9 million premiums to the insurers yearly. The Nepali insurance companies retain 0.5 per cent of this and send the rest to the reinsurance companies.&nbsp;</p>
<p style="text-align: justify;">
	Dip Prakash Panday, CEO of Shikhar Insurance, says, “The way our aviation business has been exposed, we cannot afford the risks. Who will bear the risk if some big loss occurs?” Panday asks, adding, “We are not sending money, we are transferring the risk. The &nbsp;companies are still in profit because the money is flowing in from the reinsurers abroad as commissions. Since they agreed to take the risk, they bear the loss as well, when it happens.” Shikhar Insurance, &nbsp;one of the major players of Nepal’s aviation insurance business earned Rs 10.5 million as reinsurance commissions last year.&nbsp;</p>
<div style="padding:10px; background:#f4f3e6;">
	<strong>Nepal’s First Aviation Insurance Summit&nbsp;</strong></div>
<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
	<img align="left" alt="Aviation Insurance Summit" height="173" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_main_feb2013(2).jpg" style="margin:0 10px 0 0;" width="300" />Held In January, an ‘Aviation Insurance Summit’ was held in Kathmandu where all the stakeholders including the reinsurance companies participated. The summit brought about a fresh wave of optimism in Nepal’s aviation insurance sector. Mahendra Shrestha, MD of Himalayan Insurance, who was also in the organizing committee says, “The Summit brought local stakeholders, including operators, regulatory bodies, insurance companies and banks as well as key players in the regional and global aviation insurance industry including underwriters and reinsurance brokers under one roof. It gave the Nepali stakeholders a global perspective on our current situation as well as access to the expertise of visiting delegates.” He further adds, “After the summit, all the delegates expressed that they found it to be a helpful introduction to the Nepal aviation insurance market and that it helped them take better decisions about supporting it.”</div>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	Airlines insure their fleet according to the value of the aircraft. The reinsurers charge different premiums depending on the type of aircraft, experience of the pilots and engineers, infrastructure, equipment, management facilities and age and the value of the aircraft. Aviation insurance coverage is categorized into the following types: Hull, War, Allied, Perils Insurance, Third Party Liability Insurance, In-flight insurance, Passenger liability insurance etc. The passengers are insured at USD 20,000 each and crew member at USD 40,000 each while the coverage of other categories like hull, war etc varies from airline to airline. According to the operators, the reinsurance market in Nepal was dependent on the India for a long time since it started in the early 1960s. In recent times however, as both the risk and the premium witnessed a constant upsurge, the market shifted to Europe. Indian Insurance companies like GIC, ICICI Lombard, United India and IFFCO-TOKIO were the main reinsurance partners of insurance companies previously, but the number of Indian reinsurers who do reinsurance business in Nepal has decreased over the past few years. &nbsp;</p>
<p style="text-align: justify;">
	<strong>High Premium</strong></p>
<p style="text-align: justify;">
	After the 9/11 terrorist attack in the US in 2001, where two planes - American Airlines Flight 11 and United Airlines Flight 175 - were crashed into the North and South Trade Towers, the aviation sector saw a sudden rise in premiums globally. After the incident, most of the reinsurers increased their premium rates worldwide while others loaded the premium according to the risk factors. Nepali airliners are charged up to 12 per cent premium now while airliners generally pay 4-6 per cent internationally. Previously, the premium rate for Nepal was up to 7 per cent. Thapa says, “We used to pay USD 30,000 as &nbsp;premium as early as six years ago. Now we have to pay USD 300,000 for the same aircraft – 10 times more than the premium rates in the past.” Currently, Tara Air and Agni Air are paying up to 12 per cent premium. However, Panday says that the premium rates differ from airline to airline. He says, “It is not that all airlines have to pay a high premium. The premiums of some airliners are as low as 1.5 per cent.”&nbsp;</p>
<p style="text-align: justify;">
	There are many conditions when the reinsurers charge high premium. They charge more if they discover that the airliners have had an air accident in the last five years or have a high frequency of making claims. Prem Bahadur Maharjan, Chaiman of Rastriya Beema Sansthan (RBS), says, “The risk factor is not within our control and that needs to be reinsured with other international insurance companies outside the country.” Decrease in the number of airlines due to the crashes and age of the aircraft lead to also high premiums. Prof Dr Fatta Bahadur KC, Chairman of Beema Samiti, says, “We had had the normal rates. But when one reinsurer increases the premium rate, others follow suit. Now the weakest airliners have to pay dearly while others too are paying high charges.”&nbsp;</p>
<p style="text-align: justify;">
	As Nepali aviation insurance is serviced by the international reinsurance market, rising premium rates is affecting the sustainability of the business. As the risk increases the market becomes limited and the airliners have no choice but to accept the high premium rates. Kewal Krishna Shrestha, CEO of Everest Insurance says, “The aviation business is running though the reinsurers are charging up to 12 per cent. But what if they charge 20-25 per cent? I don’t think the aviation industry in Nepal could bear such high premiums.” He says the environment in future could be such that even the high premium might not draw the reinsurers into confidence because of the high risk involved in the Nepali aviation and that the reinsurers could add more clauses which could affect the overall aviation business in Nepal.&nbsp;</p>
<p style="text-align: justify;">
	The reinsurers, however, insist that the premium is always determined by the risks anywhere in the world. According to Dr Pronab Sen, CEO of Nepal operation of National Insurance Company, the government-owned insurance company of India, the premium is based on the past losses. He says, “If you see the statistics, almost every year there is a crash and sometimes, there are 2 crashes in Nepal. And the rate of premium is governed by the reinsurance market. Because of the air accidents, some of the reinsurers were hesitant to do business in Nepal.” Sen adds, “We have our own retention limit. Depending on our financial strength, we retain a very small portion of the risk and reinsure the rest with other reinsurance companies. This is a worldwide practice in the insurance business. It depends on portfolio and risks. Sometime we retain 20 to 80 per cent- sometimes 90- depending on the risks.” Doug Horne, Marketing and Business Development Manager at Airclaims- A UK-based leading reinsurance company, shares a similar experience. He says, “The present level of risk is too high but there are enough insurers willing to support the market, albeit currently at a higher cost than in some other places.”&nbsp;</p>
<div>
	<img alt="Aviation Insurance Business" height="298" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_main_feb2013(3).jpg" width="550" /></div>
<div>
	<div>
		<strong>The Risky Rural</strong></div>
	<div>
		 </div>
	<div style="text-align: justify;">
		The airlines which fly mostly in the hilly region are among the high premium paying ones. On the trunk routes, the premium is only around 3-4 per cent and in the case of STOL (Short Take Off and Landing) runways, the premium rate varies from a minimum 3 to a maximum 12 per cent. Due to the risk in rural areas, the reinsurers load more premiums on them. According to the operators, the aviation insurance started becoming a loss-making business for reinsurers since 2009. There have been eight aviation crashes, killing 114 people in the past six years. Almost all these accidents took place in the hilly region. Of them, six deadly accidents occurred in 2011 and 2012 alone, excluding four helicopter crashes of which a couple were fatal. Being a mountainous country, the weather, terrain and the high altitude in the hilly region are the major challenges for the aviation sector. Poorly managed and small airfields, unpaved runways and lack of manpower to co-ordinate pilots in these areas are considered the reasons behind the air crashes. An aviation expert, requesting anonymity, says, “We need pilots who are well trained and have a sound understanding of weather pattern, especially clouds.”&nbsp;</div>
	<div style="text-align: justify;">
		The emergence of private airliners in domestic air transport started in 1992 when Nepal adopted a liberal aviation policy. And in 2002, expansion of the International Terminal Building at Tribhuwan International Airport (TIA) and the construction of a new Air Cargo Complex made it convenient for the international airliners to operate in Nepal. This increased the flow of international tourists in Nepal. Increased tourist arrivals, in turn, have led to a growth in the aviation business and aviation insurance business too. This is why the aviation insurance business has grown over &nbsp;the past decade. There are 10 fixed-wing airplane operators and five helicopter operators in Nepal at present. The Civil Aviation Report 2011-2012 also depicts a steady growth in the aviation sector with increasing flight movement.&nbsp;</div>
	<div style="text-align: justify;">
		There are altogether 54 airports in Nepal. Among them, 34 are operational at present. Among the running airports, eight are on the trunk routes- while the rest are in the remote areas. Thapa says, “Trunk route operators have fewer problems in comparison to the STOL route operators mainly because of the high hills and high altitude. There have been many instances of chopper accidents on the STOL routes.” Airports in Pokhara, Biratnagar, Janakpur, Nepalgunj, Bhairahawa, Kathamandu, Dhangadi and Chandragadhi are on the trunk route. The domestic aircraft which fly in trunk route have a minimum seat capacity of 15 and a maximum of 72 while the planes in STOL routes have minimum seat capacity of 9. &nbsp;Big aircraft fly on the trunk routes while the small ones &nbsp;are considered best for the hilly region. Suresh Acharya, Joint Secretary at Ministry of Tourism and Civil Aviation (MOTCA) says, “There is a high risk on the STOL route especially for twin-otters. There is an urgency to enhance the capacity of the pilots who fly on the STOL routes. ”</div>
</div>
<div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>The aviation insurance cover</strong></div>
	<ul>
		<li style="text-align: justify;">
			Hull All Risk (Loss or Damage to the Aircraft)</li>
		<li style="text-align: justify;">
			Hull War</li>
		<li style="text-align: justify;">
			Passenger and Cargo Legal Liability</li>
		<li style="text-align: justify;">
			Crew Personal Accident</li>
		<li style="text-align: justify;">
			Pilots Loss of License</li>
		<li style="text-align: justify;">
			Third Party Liability</li>
	</ul>
	<div>
		<div style="text-align: justify;">
			<strong>Bad Image</strong></div>
		<div style="text-align: justify;">
			 </div>
		<div style="text-align: justify;">
			The frequency of accidents has created fear in the reinsurers’ minds, pushing Nepal into a ‘risk zone’. These accidents could have negative impact on the country’s tourism if the casualties included many foreigners. Nepali aviation sector had gone through similar hard times in the past too. Ten years ago when Maoist combatants set ablaze Fishtail Air’s helicopter in western Nepal, domestic airliners got notification from the reinsurance companies abroad that they won’t compensate the losses in case of any terrorist attack. &nbsp;Panday says, “Fear is a very dangerous thing. Our terrains are difficult, which has sent a wrong perception. Similarly, loss is also a perception and can be changed. All we need is 3 to 4 years of good loss ratio.”</div>
		<div style="text-align: justify;">
			The domestic airlines are often accused of poor maintenance of their airplanes and the pilots of not following the standard operation procedures. Similarly, it is said that there is often a lack of co-ordination between the&nbsp;captain and co-pilots. Acharya says, “According to our findings, human factor is responsible for 80- 85 per cent accidents. The remaining 15 per cent accidents are caused by failure of machine, bad weather etc. It seems that the pilots are not very efficient at taking the right decision in time of emergency or they do not make the maximum use of the cock-pit. Lack of co-ordination between pilots and co-pilots and no guidance from the ground people when the plane is flying is common.”</div>
	</div>
</div>
<div style="text-align: justify;">
	<img alt="Income and Expences" height="216" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_main_feb2013(4).jpg" width="579" /></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<div style="">
		Lack of consultation between the government and insurance authorities for resolving the key issues of the aviation sector has made the aviation business worse. Acharya says, “The government is unaware about the kind of image the reinsurance companies are making of Nepal. They should have believed the government’s aviation report.” He further adds, “We need to develop that kind of mechanism. We are ready to help whenever they need any support from the government. All we need to do is build that kind of mechanism where the government as well as the insurance companies could sort out the problems together.”&nbsp;</div>
	<div style="">
		The use of ‘old’ aircraft by some domestic airlines has only added to create a negative image of the Nepali aviation, though people in the industry and experts do not call it a problem. According to a Nepali scholar who has a Master’s degree in Aeronautical Engineering from Poland, not following the standard operation procedures by the aviation operators is the major drawback in Nepal’s aviation. He says, “It does not matter whether the plane is old or new; what matters is its scheduled as well as need-based maintenance.” Lack of distance measuring equipment (DME) at airports is another shortcoming for the country’s aviation sector. He adds, “Towers are more helpful in tracking the aircraft in the right way. However, most of our airports rely on windsocks &nbsp;to indicate wind direction and the relative wind speed. This is risky. Sometimes, there is no one in &nbsp;the towers at the airports to coordinate with the flying pilots.”&nbsp;</div>
	<div style="">
		An aircraft is generally considered safe until the deadline given by its manufacturer. There is a manual for every air plane and manual for flying hours including number of flights a day. The Beema Samiti issues, renews, dismisses the licenses of insurance companies, insurance surveyors and insurance agents. It has also been “working for the development, management and regulation of the insurance business in the country.” The BS 2067 Report of Beema Samiti has also recognized scarcity of skilled manpower, unhealthy competition among insurance companies and lack of reinsurance companies within the country as the major problems of the aviation insurance business. However, the Beema Samiti has not been able to address these problems properly. Maharjan says, “There has to be a strict monitoring mechanism for air traffic discipline and safety education to the people involved in the aviation business. Pilots should also be alerted against taking any sort of risks. Aviation safety is not related to money only; it’s about lives of people.”</div>
	<div>
		 </div>
</div>
<div style="padding:10px; background:#f4f3e6;">
	<strong>Utilizing Civil Aviation Academy&nbsp;</strong></div>
<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
	If given due importance, the Civil Aviation Academy (CAA), the only training center for aviation related training in Nepal, could be beneficial to the whole aviation industry. CAA conducts basic, refresher, induction and recurrent trainings related to Air Traffic Control, Aviation Security, Fire fighting and rescue, CNS and others based on quality curriculum. Though it is the only state’s approved aviation training organization (ATO) in Nepal, the private sectors have failed to utilize them properly. Mahendra S. Rawal, Chief of CAA says, “Though we are also in the developing phase, we can still work together to develop expertise. Together we can either develop the infrastructure here or bring expertise from outside the country.” The CAA runs courses on Air Traffic Services (ATS), Engineering, Aviation Security, Aerodrome rescue and fire fighting among other five dozen courses ranging from knowledge based to competency based training.</div>
<p>
	 </p>
<p>
	<strong>The Way Forward</strong></p>
<p style="text-align: justify;">
	Mergers among insurance companies to increase capital base is regarded as one of the possibilities for enabling the insurance companies financially. The insurance companies are also trying to increase their retention capacity from 0.5 to 1 per cent which has spread positive message to their clients. There have been many progresses in Nepal’s aviation sector. From the month of Kartik, this year; Tourism Ministry has revised the provision of compulsory payment of 60 million dollar in third party liability to airliners during the registration time. CAAN has subsidized up to 8 million dollar to the airlines that fly to rural areas. An agreement was signed between the Government and CAAN for Capacity Enhancement Project of TIA under ADB loan in 2010. A safety audit was carried out in Nepal from 5 to 14 May 2009 according to the Universal Safety Oversight Audit Program (USOAP) as provisioned by ICAO and the Corrective Action Plan based on the flight safety. The findings of the audit have already been submitted to ICAO. Furthermore, a provision has been made to perform all activities in congruence with the concept of ICAO USOAP Audit Continuous Monitoring Approach (CMA).&nbsp;</p>
<p style="text-align: justify;">
	Tri Ratna Manandhar, Director General, CAAN says,” We have followed international standards in safety measures and the maintenance of aircraft is carried out as per the European standards- EASA Part-145. Buddha and Yeti airlines have already started it and others are in the process.” According to him an ICAO team is visiting Nepal in July 2013 for audit. He says, “After this ICAO audit, we will be able to prove that we have made progress in aviation management including the safety.” CAAN has been conducting strict safety programmes for safety and maintenance for the past six months. Likewise, the board of CAAN approved Air Operator’s Requirement (AOCR) in November 2012 which clearly mentions the requirements to get Air Operator Certificate. It has also managed the maintenance of aircrafts by AMT (Aircraft maintenance technician) from UK from this year. It is also planning to build an isolated parking for the planes having bomb threats and hijacking etc next year.&nbsp;</p>
<p style="text-align: justify;">
	No compromise &nbsp;at all with safety could be the best way to lower the high premium in Nepal’s aviation insurance, say the experts. The airline operators, too, are more aware about maintaining the safety standards today than in the past. AOAN has been organizing many seminars on aviation and programmes to help lower the premium by assuring safety. Thapa says, “There have been programmes organized aimed at enhancing the safety measures and we are very much confident that we would be able to enhance the safety measures.” He adds that airline operators are optimistic about reducing the risks. “A plane using only the Visual Flight Regulation (VFR) should not be allowed to go through the clouds. Pilots too should stop flying in pressure. If we follow all the safety measures definitely the risks have to go down. Civil Aviation Authority of Nepal (CAAN) should monitor these flights and instruct the airlines accordingly,” He says.&nbsp;</p>
<p style="text-align: justify;">
	Experts also feel the need of &nbsp;terrain awareness and warning systems (TAWS) developed by manufacturers and safety regulators to prevent accidents from Controlled Flight into Terrain (CFIT). CFIT is among the leading causes of airplane accidents involving the loss of life worldwide. The Wikipedia describes it as an accident in which an airworthy (fit to fly) aircraft, under pilot control, is unintentionally flown into the ground, a mountain, water, or an obstacle. With improvements in infrastructure, training and operations, reinsurers are also optimistic in reducing the cost of insurance to a reasonable level. Horne from Airclams says, “The prospects for aviation insurance business in Nepal are bright. There is a capable and knowledgeable local market which has good relationships with the global insurance community.” He adds, “What is perceived as the current high cost of insurance can and should be reduced for operators who demonstrate a good safety culture and record, adopt a Safety Management Programme that is working well and can prove that it is making a difference.”</p>
<p style="text-align: justify;">
	While the formation of a pool of all the insurance companies to collectively handle the claims in aviation insurance is in the initial phase, the government is planning to convert the insurance pool into a reinsurance company under Beema Samiti. &nbsp;Ramesh Lamsal, Executive Director of Insurance Pool says, “We have not prepared the business plan about aviation insurance yet. But if the aviation segment is included it will support the aviation business in Nepal.” Government authorities say that if the main players in the aviation business in Nepal- the airliners and insurance companies prepare appropriate strategy for the safety measures they are ready to co-operate insurance companies and protect them from those risks. Dr. KC says, “There should be positive attitude towards the formation of possible reinsurance company in Nepal after calculating the advantages and disadvantages on the business. The foremost thing is that it should be for the stability of the aviation business.”</p>',
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			'description' => 'The insurance companies providing aviation insurance have to pay a high amount of premium – more than 99 per cent at times - to the reinsurance companies abroad. In fact, the companies are sustaining their aviation insurance business from the commission they get for the premiums paid to the foreign reinsurers.',
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			'title' => 'Investment Is Not A Big Thing These Days',
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			'content' => '<p style="text-align: justify;">
	<img align="left" alt="Binod Chaudhary" height="288" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_binod_feb2013.jpg" style="margin: 0 10px 10px 0;" width="350" />Binod Chaudhary is the President of Chaudhary Group (CG), one of the leading business houses of Nepal. He is also the Chairman Emeritus of Confederation of Nepalese Industries (CNI). A prominent industrialist, Chaudhary has recently published an autobiography, ‘Atmakatha’. This book tells the successful story of how Wai Wai noodles, initially imported from Thailand, which later took such a big market share. “Currently, 1 billion packets of Wai Wai noodles are produced annually which accounts for 1% of the total noodle production of the world”, claims Chaudhary. In an interview with New Business Age, Chaudhary talks about the CG’s successful ventures and the group’s plans among other issues.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Excerpts:</strong></p>
<p>
	<strong style="text-align: justify;">You seem to be saying and doing whatever the Industrialist Dhirubhai Ambani of India used to say and do. Are you influenced by him?</strong></p>
<p style="text-align: justify;">
	I always say that I am influenced by two people in India - J.R.D. Tata and Dhirubhai Ambani. The status given to the Tata Group by J.R.D. Tata is unmatched by any other business house in the world. But the industrial revolution in India was brought by Dhirubhai Ambani. Hence, I am his big fan.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You happen to praise the former leader of South Korea, Park Chung-Hee as well. Do you believe that the government should praise the industrialists?</strong></p>
<p style="text-align: justify;">
	Park Chung-Hee has given birth to many multi-national companies during his regime. That is why the multinational companies of South Korea are successful globally. I am a 100% supporter of that. I truly believe that in a country like Nepal, private companies cannot develop without support from the government. In countries like Japan and Korea, the government has pushed the private companies to grow. I believe that the same should apply in our case as well.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Why did you change the decade long established Chaudhary Group into CG?</strong></p>
<p style="text-align: justify;">
	This is just a branding. The word CG is easy to remember for people but Chaudhary Group is not. You have to twist your tongue a little bit. Actually, the brand “Chaudhary’s” could not be well established. There used to be a logo of Chaudhary’s in our every product. But, that could never be the talk of the town. Today, no one says Chaudhary’s. Everyone likes to say CG.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You have set up several Noodle producing plants throughout India. Similarly, you have invested in luxury resorts in cooperation with Taj Hotel. How much have you invested like this within Nepal and abroad?</strong></p>
<p style="text-align: justify;">
	We also do not have an exact account of that. We have many companies that are being run by different individuals. Again the criterion to judge a company has become different these days. Today, a company is judged on basis of its brand, marketability etc. According to that, the co-investors invest. Today, the Tata family owns only 3% of the Tata Group. But, they are buying several companies of millions of dollars in the name of Tata industries and are trading worldwide. That’s why investment is not a big thing these days. I constantly repeat that a multinational company cannot be setup by just collecting money from Nepal. There is not enough capital to do that. Furthermore, there is a possibility of development within and without. If you have the capability of industrialization, capital will follow you. Today, we are producing Wai Wai in more than 3 countries. In those countries, there are several investors who are interested to invest in Wai Wai. We are working in hotels in different nations, in our own brand and in others’ brands. We have an option of choosing whom to mingle with. We have already earned that trust of the investors in the international market. That is why investment value and volume by an individual company or industrialist is not the key factor here.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The main question is when we can say with certainty that Binod Chaudhary is an internationally recognized billionaire.</strong></p>
<p style="text-align: justify;">
	Binod Chaudhary is only a face. If someday CG group comes to be recognized as Nepal’s billionaire company, it is not only my pride but yours too. And I pray that the day comes soon.&nbsp;</p>
<p style="text-align: justify;">
	<strong>For some time past, you have been concentrating more on imports, rather than on two or four flagship industries like Wai Wai.&nbsp;</strong></p>
<p style="text-align: justify;">
	During the last twenty years, the nation has faced insurgency. Today also it exists in some form or the other. The only company that developed both horizontally and vertically during this period is CG. If CG owned only 3 companies back then, today it owns 14. If 500 people worked back then, today 3000 people do. &nbsp;If CG vertically owned 6 business houses back then, today the number is 10. The cement company has also been added to them. In fact, we are building the nation’s largest cement company. We are also trying to set up hydro power plants with over 240 MW capacity each. We have entered the ayurveda sector. &nbsp;In terms of education, we have established 5 institutions where over 4000 students are studying. We are going to invest Rs. 1 billion in education. Then an additional 10000 students will have the opportunity to study annually. Service industry is also being looked at closely by us. If you look at this sector by turning the pages of Aarthik Abhiyan National Daily, you can find the answer to your question over there itself.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You have recently left the chairmanship of CNI. Why was CNI unable to do anything much impactful during those years of your leadership?</strong></p>
<p style="text-align: justify;">
	I am doing well in CNI. Recently, a new leadership has arrived. We are also visiting districts. However, we are not in favour of opening branches in all the 75 districts. CNI mainly represents the industrial sector of the nation. Where there are no industries, it is not necessary to open the branches but we are frequently visiting the districts where there are industries.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Some time ago, you said that Nepal Airlines Corporation should be operated under PPP. Are you interested in investing in the corporation as well?</strong></p>
<p style="text-align: justify;">
	I have lost that interest now. I do not know if any private investor can show a positive route to Nepal Airlines Corporation. It is difficult to bring a change in such a corrupt system.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Nepalis cannot legally invest in the foreign markets. That would be great if possible. You got involved in a political party and also reached the constituent assembly. But, you could not do anything substantial in this regard.</strong></p>
<p style="text-align: justify;">
	Everybody agrees in this issue. Nepal Rastra Bank has been introducing several fiscal policies for that from time to time. But no proposal has yet been passed in the assembly. That is why it is not a law yet. Nepalis have opened restaurants and hotels in US and Japan. The important thing is that Nepalis are investing. When Nepalis could not invest and only the non residents could, Binod Chaudhary had to make Barun and Rahul Chaudhary, NRNs. Everyone should appreciate it. Please do not consider it illegal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You are such a successful industrialist. But, CG has not been able to make returns to the society accordingly. Except for some minor contributions, no significant contributions in CSR (Corporate Social Responsibility) can be seen. Why?</strong></p>
<p style="text-align: justify;">
	We believe that we have a major involvement in the social sector. Our brand line is ‘Touching life everyday’, which means we do touch lives every day. CSR also has different ways. Donation is also one of them. The other is to help the society during desperate times. You can consider Norvic hospital and educational institutes for this case. Without these initiatives people would have been deprived of quality education and health. It’s a part of CG to cooperate with the society. Some receive concessions and some receive scholarships. You take from those who can give and you give to those who can’t.&nbsp;</p>
<p style="text-align: justify;">
	Recently, we have agreed to set up a social business fund in cooperation with Noble prize winner Muhammad Yunus’s Muhammad Yunus Center. That will help the Nepalis who want to set up a business but do not have enough resources to do exactly that. We are always committed to shake hands with the society and move forward.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What are your suggestions to the Nepalis who want to start up new businesses in Nepal?</strong></p>
<p style="text-align: justify;">
	New businesses will have to face a lot of difficulties. I strongly suggest not losing hope. It always takes time to see the results. And, I am very hopeful for everyone.&nbsp;</p>',
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			'keywords' => '',
			'description' => 'When Nepalis could not invest and only the non residents could, Binod Chaudhary had to make Barun and Rahul Chaudhary, NRNs. Everyone should appreciate it.',
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		'Article' => array(
			'id' => '876',
			'article_category_id' => '41',
			'title' => 'Oil And Gas In Nepal: Foreign Investors’ Dilemma',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Abhimanyu Chhetri</strong></p>
<p>
	<img alt="Oil and Gas, Sectoral February 2013" height="386" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_feb2013.jpg" width="570" /></p>
<p style="text-align: justify;">
	<span style="text-align: justify;">In the time it takes most people to read this sentence, the world will have used up about 8,000 barrels of oil (1 million liters); at 1000 barrels per second. The price of oil and gas is ever rising. International Oil companies are making huge investments around the world in search of new reservoirs. It might be surprising for some to know that Nepal has reserves of both oil and gas and foreign companies are eyeing those reserves. As of July 2012, the 10 blocks designated by the Department of Mines and Geology(DMG) for oil and gas exploration have been leased out to 4 different Oil giants. &nbsp;&nbsp;</span></p>
<p style="text-align: justify;">
	In the summer of 2012, there was a huge outcry about two international oil giants – Texana Resources Company of Houston, USA and Cairn Energy of UK leaving Nepal citing a “force majeure”. Force Majeure can free both parties from liability or obligation in case of an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or an event described by the legal term act of God (such as hurricane, flooding, earthquake, volcanic eruption, etc.). However, this allows the parties to only suspend their work but not cancel the contract.&nbsp;</p>
<p style="text-align: justify;">
	In most countries oil companies are being forced out. However, in Nepal the two companies packed up and left. The two companies said they were abandoning exploration work in Nepal due to bureaucratic hurdles and lack of cooperation from the government. Both have already spent millions of dollars in Nepal on preliminary surveys and were all set for a ‘seismic operation,’ which determines whether the surveyed areas contain commercially viable quantities of oil. To date, Texana has spent US$3 million and Cairn US$2 - 10 million in the country. &nbsp;The two companies were required to pay an annual fee of US$ 50,000 per ‘block’ to the Nepal government. They also have to provide bank guarantees before starting the geological survey works.</p>
<p style="text-align: justify;">
	Rajendra Prasad Khanal, Head of the Petroleum Exploration Promotion Project (PEPP) under DMG, says that these companies entered Nepal during Maoist Insurgency. Texana won the bid in 1998 for 2 blocks and Cairn Energy got the license for 5 out of remaining 8 blocks in 2004. He says, “It is understandable that the companies could not work before due to the insurgency going on during those years, but now the situation has changed. Nepal is a peaceful developing country and there is no obstacle for them to carry out their investigations.”</p>
<p style="text-align: justify;">
	In fact, the team at PEPP is repeatedly requesting them to complete their work in time as per the agreement. Texana has 13 months left and Cairn energy has 7 months left of their contract period. Mr. Khanal and his team are creating a momentum to complete the necessary pre investigations and hopefully extract the crude oil in near future. &nbsp;</p>
<div style="padding:10px; background:#f4f3e6;margin-bottom:10px;">
	<div style="padding:10px; background:#f4f3e6;">
		<strong>Sharing the country’s prospective product with the foreign companies&nbsp;</strong></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		The Petroleum Regulation 2041 (1985) has made a provision of “Model Petroleum Agreement” which includes all the items to be covered in the petroleum operations. This model agreement is in the form of Production Sharing Contract with provision of Royalty and Income Tax. This is also influenced by the amount of crude reserves that can be extracted. The companies will have to pay a royalty of 12.5% to the Government of Nepal and a 30% income tax after sales of the optimal amount of extraction. An obligation to drill a well is not mandatory in the initial exploration period of 4 years.</div>
</div>
<p style="text-align: justify;">
	Recently, Nepal has accorded high priority to encourage foreign investment in the country. With economic liberalization policy of the government and attractive fiscal terms available, Nepal is committed for full cooperation to international companies in facilitating petroleum exploration in Nepal.</p>
<p style="text-align: justify;">
	The DOMG and PEPP have divided the Tarai and the Siwalik hills into 10 ‘exploration blocks’ of 5,000 sq km each and is trying to sell the exploration license to the International oil exploration companies . Texana won the bid for Blocks 3 (Banke) and 5 (Chitwan) and entered into an agreement with the government in December 1998. In 2004, the British company Cairn Energy received a license to explore five other blocks—Block 1 (Dhangadhi), Block 2 (Karnali), Block 4 (Lumbini), Block 6 (Birgunj) and Block 7 (Malangawa).&nbsp;</p>
<p style="text-align: justify;">
	&nbsp;As of July 2012, when the two companies left the country citing “Force Majeure”, the DMG put the remaining blocks up for bid. Currently, the Block 8(Janakpur), Block 9(Rajbiraj) is owned by Emirates Associated Business Group (EABG) of UAE and the Block 10(Biratnagar) is owned by BBB Champions, which is another Houston based Oil Company. Both have bought a 4 year license to carry out exploration activities in these areas.&nbsp;</p>
<p style="text-align: justify;">
	Mr. Khanal thinks that this is only the first step and a considerable amount of work is still to be done. The team of geologists at the DMG and PEPP are constantly providing the geological data to the foreign companies that can be indicators to the presence of oil in the region. Along with this, oil and gas have been found in India, Pakistan and Bangladesh in similar geological setting as that of the exploration blocks in Nepal. This has also further encouraged Mr. Khanal’s team to find the hidden reserves. According to Khanal, more companies are showing interest to bid for the license. The PEPP and DMG are involved in collecting more geological data as to attract more companies and facilitate the process of oil extraction for commercial use.</p>
<div style="text-align: justify;">
	<img align="right" alt="Oil and Gas in Nepal, Sectoral February 2013" height="402" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_feb2013(2).jpg" style="margin:0 0 0 10px;" width="300" />
	<div style="">
		There is an urgency to extract these non renewable resources. Geologically, oil is formed when the dead burials mature under high temperature and pressure. After a certain period, the oil moves from the oil window to the gas window. This indicates that the reserves underground have matured for extraction a long time ago and the reserves might be lost if not extracted in time. A number of oil and natural gas seeps have been recoded in a stretch of 14km in Padukasthan, Sirsethan and Navisthan area in Dailekh and only gas seeps in Muktinath in Mustang. Methane gas deposit in Kathmandu Valley is known since long time. Feasibility study has confirmed that this gas can be used for industrial and household purpose and the reserve is sufficient to supply gas to 21,000 families for about 30 years. During preliminary study, 23 geothermal hot springs have been identified nationwide. Most of them are found to be associated with Main Central Thrust (MCT) and confined to the river banks. The temperature of the hot spring water ranges from 40o to 115oC. It can be utilized for heating, drying fruits, hot water bath to heal skin disease. According to Krishna Prasad Kafle, a Geologist retired from DMG, considerable amount of investments should be made in exploring these resources.&nbsp;</div>
	<div style="">
		 </div>
	<div style="">
		The only exploration of theses precious natural resources is done in Kathmandu Valley, where Peat and Lignite is mined and used mainly in firing brick kilns. Only one well, the Shell er al Biratnagar 1, with a total depth of 3,520 m has been drilled in Nepal. In 1986, Shell and Triton bought Block no. 10 in Eastern Nepal for exploration but abandoned its project soon when it didn’t strike any oil. People associated with the project argue that Shell just didn’t drill deep enough. The situation was such that the drilling machines had to be imported from India and, due to certain trade restrictions, daily operation charges went as high as Rs 35,000 per day in the then price situation. Today, the daily operation cost is in the range of thousands of dollars. But, if considerable amount of oil is found in Nepal, it will be a boon for the Nepalese economy.</div>
	<div style="">
		 </div>
	<div style="">
		 </div>
</div>
<div style="padding:10px; background:#f4f3e6;">
	<strong>A case of Norway&nbsp;</strong></div>
<div style="padding:0 10px; background:#f4f3e6;">
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		Before 1960, though an independent country Norway was constantly exploited by the rich and powerful UK and Denmark. During World War I, Norway was a neutral country. In reality, however, Norway had been pressured by the United Kingdom to hand over increasingly large parts of its massive merchant fleet to the UK at low rates, as well as to join the trade blockade against Germany. At the end of the 1950s, very few people believed that the Norwegian continental shelf concealed a wealth of oil and gas. Then, Ekofisk was discovered in 1969 and the Norwegian oil adventure started in earnest. Production from the field started on 15 June 1971 and during the following years, several large discoveries were made. In the 1970s, the exploration activity was concentrated in the North Sea, but the shelf was also gradually opened northwards. This led to world-class discoveries and the production from the Norwegian continental shelf has been dominated by these large fields that were given names such as Ekofisk, Statfjord, Oseberg, Gullfaks and Troll. These fields have been and still are very important for the economic development of Norway. In the last 40 years, Norway has developed an oil and gas industry and this in-turn has resulted in unique national economic growth and welfare improvements. Today, Norway ranks as the second wealthiest country in the world in monetary value, with the largest capital reserve per capita of any nation. The standard of living in Norway is among the highest in the world. It used up its oil and gas reserves to gain this status.</div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		<img align="left" alt="" height="207" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_norway_feb2013(3)(1).jpg" style="margin:0 10px 0 0;" width="300" /></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		Petroleum exploration activities carried out on the continental shelves of Norway.</div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		<span style="font-size:11px;"><br />
		</span></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: right;">
		<span style="font-size: 11px;"><br />
		</span></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: right;">
		<span style="font-size: 11px;"><br />
		</span></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: right;">
		<span style="font-size: 11px;"><br />
		</span></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230);">
		<span style="font-size: 11px;">Source: upstreamonline.com</span></div>
</div>
<p>
	 </p>',
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			'description' => 'While in most countries oil companies had to be forced out, in Nepal companies have packed up and left on their own complaining bureaucratic hurdles.',
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		'Article' => array(
			'id' => '881',
			'article_category_id' => '47',
			'title' => 'A Quest For Bliss',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<img align="right" alt="Trishakti Joshi" height="338" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/personality_trisakti_feb2013.jpg" style="margin: 0px 0px 0px 10px;" width="318" /><strong>By Gaurav Aryal</strong></p>
<p style="text-align: justify;">
	Trishakti Joshi, CEO of Elite Networks was raised at a time when sons in the family were pressed to be either a doctor or an engineer. Being a part of the family with a daughter and two sons, Joshi was set to be a doctor as his elder brother had chosen the path to engineering. But the life of his had something else in its details.</p>
<p style="text-align: justify;">
	He was convinced and determined to be a doctor in his schooldays. So, he also took up Biology as one of the optional subjects in school. But as soon as he came out of his school passing his School Leaving Certificate (SLC), he watched lives of doctors from close. Then the fire in him that wanted to be a medical doctor extinguished. Joshi explains, “I was always a kind of person who wants and tries to do something new. I did not find that profession interesting. New experiments and trying out new things were missing out there. Though there is scope for research and development, it is not simply possible in the initial phase.”</p>
<p style="text-align: justify;">
	<strong>The Chosen Dream</strong></p>
<p style="text-align: justify;">
	Deciding to quit the doctoral profession he thought of shifting to architectural engineering. But unfortunately, only Intermediate in Engineering was taught in Nepal. So, one had to go abroad to complete the further studies. So, he joined ISC in Patan Campus but entering the Physics faculty was not so easy for a boy who came through a biology background. &nbsp;He managed through it and joined BSc in Trichandra College. Though he was keen to go to the US for further studies, he recalls his father, who had lived in the US for a long time, did not want Joshi to go there for his undergraduate studies.</p>
<p style="text-align: justify;">
	In the meantime the wave of new technology and especially the computers had struck Nepal. Along with his studies, he also joined MIPS at Bagbazar and learned the ABCD of computers there. The curiosity for the technology and a strong background in Science made him land as a job holder in the Mercantile Office Systems. There he used to repair computers. He worked for five years for Mercantile. Having worked for a long time with machines, he then craved working with people.</p>
<p style="text-align: justify;">
	With a dream to do something new and more satisfying he came up with an idea to offer computer networking services to offices. It was already an old thing in the international market but it was pretty new for Nepal. Then he established Elite Networks, partnering with a friend, the company which he is currently looking after.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Making Leaps</strong></p>
<p style="text-align: justify;">
	Joshi cashed in on the relationship he made in his previous job to find his clients. So, the networking responsibilities of the then Grindlays Bank or today’s Standard Chartered Bank were taken up by his company in its initial days. Joshi accredits the bank for the success of his company. As of now the entire IT of the bank is managed by Elite Networks. His company worked for the American Library, looked after IT aspects of Hillary Clinton’s Nepal visit and also sold computers.</p>
<p style="text-align: justify;">
	In the due course, his company also work abroad too. Joshi’s company took up all the responsibilities of setting up networking for UNDP’s Bhutan Office. As of now, he has been introducing and maintaining the new initiatives his company makes. Around 1996 he also initiated the project to network two offices. And Joshi claims that his company was the first in Nepal to introduce wireless networking.&nbsp;</p>
<p style="text-align: justify;">
	Joshi’s venture that began with networking business also tried out sms banking, and now concentrates more on providing complete IT solutions to its clients. It not only provides tools and technology but also provides the entire services related with it. Since 2009, he started selling Automated Teller Machine (ATM) and all the services associated with it such as installation and maintenance among others. Joshi claims that his company has over 50 per cent market share in the ATM sales and caters to around 65 banks and financial institutions. His company also installs and manages ATM lounges. Once, Joshi also provided consulting services for his clients about the IT. Apart from these, his company in partnership has established and operated a data centre at Thapathali targeting financial institutions and corporate houses.</p>
<p style="text-align: justify;">
	Elite Networks that began with two people, has now reached to a team of 60. Moving away from selling hardware, he plans to concentrate more on the complete solution packages and also venture into software development. Joshi sees a huge market prospects not only in Nepal but also globally in apps development for smart-phones and tablet computing.&nbsp;</p>
<p style="text-align: justify;">
	Had he not been in the current business, Joshi thinks he would have become either doctor or taking some job somewhere in the field of IT.&nbsp;</p>
<div style="padding:10px; background:#f4f3e6; margin-bottom:5px;">
	<p>
		<strong><span style="color: rgb(255, 0, 0); font-size: 16px;">Personal Side</span></strong></p>
	<ul>
		<li>
			Likes attending social events and professional gatherings</li>
		<li>
			Enjoys drinking without letting alcohol taking him over</li>
		<li>
			Loves cooking on weekends</li>
		<li>
			Loves using gadgets more for his works than for entertainment</li>
		<li>
			Prefers quality over brand names but gives value to brand values</li>
		<li>
			Likes photography</li>
		<li>
			Loves playing golf</li>
		<li>
			Socially active as a member of Toastmasters Club, Executive Member of CAN and Executive Member of Nepal Golf Association</li>
	</ul>
</div>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	Joshi says, “For me trying and doing new things is like an addiction. I visit abroad to understand and find out emerging technologies and identify new technologies that can be useful in Nepal.” Joshi localises those technologies to best suit the need of the Nepali market before introducing to Nepal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Working style</strong></p>
<p style="text-align: justify;">
	While making any decisions, Joshi goes after his instincts, local market knowledge and trend in the international market. Similarly, he says that he readies himself before the market readies itself while introducing any new products and services. Joshi is already ready on his part before the clearing houses are ready to be operational in Nepali market- his new target place to offer services and solutions. Joshi recalls such times when he has been ahead of time and market, and instances where he had to drop the entire idea. He exemplifies such a situation in sms banking, where other companies in the market are doing well currently.</p>
<p style="text-align: justify;">
	Every day, Joshi gets up at around 5:30 in the morning. Then, he goes to the club for exercises and fitness for one and a half hour. At around 8:30, he leaves for office and reaches there within half an hour. As he has to keep in touch with companies in Singapore, he utilises the time before his employees arrive for corresponding with those companies. “When my team arrives at office by 9:30, I am ready for them and by 10, when banks open, I am ready for clients too,” he describes. He usually ends the day at 6 pm.</p>
<p style="text-align: justify;">
	<strong>Management approach</strong></p>
<p style="text-align: justify;">
	Joshi looks after the management of his company Elite Networks while his partner Pramod Kunwar looks after all the technical aspects. He reveals that the entire accounting services have been outsourced to another company since day one.</p>
<p style="text-align: justify;">
	Joshi believes, “As easy it is to establish a company, it is equally difficult to sustain it. It may look effortless to grow but it is equally tough to maintain that growth.” &nbsp;Joshi’s company around six years ago thought of getting an ISO certificate but dropped the idea because of the lengthy documentation process. But, he slightly modified the procedures and applied all the quality measures on the functioning of the company.&nbsp;</p>
<p style="text-align: justify;">
	When it comes to the human resource management, he has not left any stone unturned to keep his employees happy and motivated. He says that performance based incentives and regular motivational packages are offered to the human resources to keep their high spirits going higher.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Defining Success</strong></p>
<p style="text-align: justify;">
	For different people, success comes at different shapes and sizes. For Joshi, it comes in the form of satisfaction and joy. He recalls his initial days when he used to be filled with joy on closing a deal. “Everything does not remain the same forever. I am constantly in search of what next. If the newness is missing, pleasure diminishes,” he explains, “More than money, I enjoy the process of making money.”</p>
<p style="text-align: justify;">
	Joshi suggests sincerity and dedication to the work is must for both satisfaction and achieving success. “You have to believe on what you do and you have to be passionate about it. When one enjoys work, money does not become the first priority and success will automatically follow. Money is its by-product,” says he.</p>
<p style="text-align: justify;">
	<strong>The Personal Space</strong></p>
<p style="text-align: justify;">
	When it comes to bridging the professional and personal life, Joshi likes them to remain at a distance. He does not mix the two. He says that unless it is an emergency, he neither takes official work to home nor receives any work related phone calls from home. Saturdays are the days when he likes spending time with his family and giving chances to his hobbies and interests. When he gets free time, he adores going little adventurous. He loves hiking, trekking, cycling and roaming around in the nature. Joshi has also recently developed new hobbies – photography and golf. He plans to give more time to his interests and his desires that were sidelined on the process of pursuing bigger professional dreams.</p>
<p style="text-align: justify;">
	It has been more than two decades since he first started working. So, he desires to give some extra time for himself reducing the working hours. “I have been thinking to minimise my working hours and give little extra time for my personal interests,” Joshi promises.</p>
<p style="text-align: justify;">
	Similarly, at the back of his mind he has been slowly making rough sketch of retirement and succession planning. He wants to groom somebody capable so that he can handover his responsibilities. However, he does not plan to completely abandon his company and profession.</p>',
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			'description' => 'Trishakti Joshi, CEO of Elite Networks, likes to keep himself ahead of the market which he wants to conquer with new technologies and every service that come attached to it. The believer in work, passion and dedication finds success in every satisfying moment he has found in the pursuit of his professional goals.',
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		'Article' => array(
			'id' => '882',
			'article_category_id' => '48',
			'title' => 'New Financial Lexicon',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Madan Lamsal</strong></p>
<p style="text-align: justify;">
	Without certain dedicated abbreviations, terms and jargons, no modern sector appears trendy and modern. The financial services definitely cannot fall behind in this innovative venture. What they were originated for and what exactly they have started to mean now is indeed a linguistic feast to cheer for. Some examples from a non-exhaustive glossary:&nbsp;</p>
<p style="text-align: justify;">
	<strong>Accrued Interest:</strong> An accumulated interest due in the account of the most-favoured borrower of the bank, which may never be paid.</p>
<p style="text-align: justify;">
	<strong>ACH:</strong> Association of Clever Herds, representing the corporate world created to buy time from their wives.</p>
<p style="text-align: justify;">
	<strong>AML:</strong> A new disease called Acute Myeloid Leukemia diagnosed among some businessmen caused by the flu emanating from Anti Money Laundering (AML) Act.</p>
<p style="text-align: justify;">
	<strong>Appraisal:</strong> An annual drama of awarding a crony of the management for promotion or favouring a mediocre firm at the cost of the best performer without connections.&nbsp;</p>
<p style="text-align: justify;">
	<strong>APR: </strong>A commonly used tool to make customers April Fools, previously known as Annual Percentage Rate.</p>
<p style="text-align: justify;">
	<strong>ATM:</strong> Any Time Malfunction machine to dispense money even from your own account.</p>
<p style="text-align: justify;">
	<strong>Availability Date:</strong> A choreographed schedule of senior bank officials to prove that they actually work sometime, if available for the cause of common business interests.</p>
<p style="text-align: justify;">
	<strong>Availability Policy:</strong> Bank&#39;s policy to indirectly announce its liquidity position by fixing the date when funds deposited into an account will be actually available for withdrawal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Bank Custodian:</strong> The Central bank, in case of Nepal NRB, is a specialized police custody for the bankers who remain recalcitrant to follow NRB directives issued not necessarily to maintain the safety of depositors&rsquo; assets but to prove that the central bank actually has some teeth and may bite anyone it doesn&#39;t like.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Bank:</strong> A glassed cage where you are made to feel like a pig when entered and your assets are valuated only a quarter of what they are actually worth for, and you cannot have any say at any point in time whether you deposit or borrow.</p>
<p style="text-align: justify;">
	<strong>Bankrupt:</strong> New certificate of dignity to most of the clients of most of the banks. And you can justify it by talking all day about recession.</p>
<p style="text-align: justify;">
	<strong>Bear Market:</strong> A cool alcoholic fizzy drink for the losers in the capital market, synonymous with the beer market.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Billionaire:</strong> A rare breed of individuals in Nepal who have never made their books of accounts public and never proved to have done illegal things.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Bull Market: </strong>A market place where oxen are sold and bought by the farmers right before the farming season.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Capitalism:</strong> A policy of almost every political party of Nepal that doesn&#39;t believe in anything less than accumulating capital by hook or by crook.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Collateral:</strong> A single basis of evaluating the borrower&#39;s credit-worthiness in the Nepali banking system, without which Nepali banks cannot even breathe. Things like credit records or project viabilities of the borrowers are bull sheet.</p>
<p style="text-align: justify;">
	<strong>Co-Signer:</strong> An individual who sings in the tune of the boss in the bank, also known as a co-maker.</p>
<p style="text-align: justify;">
	<strong>Deferred Payment: </strong>An act of postponing the payment for a future date which never comes; which has now become a widespread practice in the Nepali banking industry.</p>
<p style="text-align: justify;">
	<strong>Depression:</strong> A psychological phenomena reflecting the state of mind of the citizens, caused by the long run gloomy outlook of the economy.</p>
<p style="text-align: justify;">
	<strong>EBIT: </strong>Bank&#39;s earnings before irregularities and tampering.</p>
<p style="text-align: justify;">
	<strong>Electronic Banking: </strong>&nbsp; An internet or mobile-based service of the banks that allows even a non account holder to obtain account information and manage certain banking transactions through a personal computer, directly logging into the financial institution&#39;s portal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>KYC:</strong> Kill Your Customer &nbsp;&nbsp;</p>
<p style="text-align: justify;">
	<strong>Mutual Fund:</strong> A mutual practice of distributing hefty loans among the CEOs of the banks in a turnkey basis so that they can invest in real estate business.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Outstanding Check:</strong> An errand boy standing outside the door of an office carrying a bank&#39;s check.</p>
<p style="text-align: justify;">
	<strong>SLR: </strong>Self-loading rifle belonging only to the central bank, used to rob the banks in the veil of statutory liquidity ratio.</p>
<p style="text-align: justify;">
	<strong>Stagflation:</strong> When it is the time for the Royal Stag, the leisure borne out of inflation-induced inaction.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Students&rsquo; Loan:</strong> Loans given to students to buy sporty bikes, so as to enable them to undertake a number of dating projects simultaneously.</p>
<div style="text-align: justify;">
	&nbsp;</div>',
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			'id' => '873',
			'article_category_id' => '40',
			'title' => 'Nepali Insurance Companies Are Paying Big Premium To Re-insurance Companies',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong style="color: rgb(35, 200, 250); font-size: 16px; text-align: right;">‘Nepali insurance companies are paying big premium to re-insurance companies’</strong></p>
<p>
	<img align="right" alt="Fatta Bahadur KC, Chairman Beema Samiti" height="329" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/fatta_cover_feb2013.jpg" style="margin:0 0 0 10px;" width="250" /></p>
<address style="text-align: right;">
	<strong>Prof Dr Fatta Bahadur KC</strong></address>
<address style="text-align: right;">
	<strong>Chairman</strong></address>
<address style="text-align: right;">
	<strong>Beema Samiti (The Nepali regulator of Insurance Sector)</strong></address>
<p>
	 </p>
<p>
	 </p>
<p style="text-align: justify;">
	<strong>What is the size of the aviation insurance market in Nepal?</strong></p>
<p style="text-align: justify;">
	Aviation insurance is one of the important portfolios in the insurance sector. So far as the size of the aviation insurance is concerned, it has been increasing every year. There are altogether 17 non-life insurance companies registered. But only seven of them are into the aviation insurance business. The annual premium collection from aviation insurance in Nepal is about Rs 3 billion.&nbsp;</p>
<p style="text-align: justify;">
	<strong>It is said that some insurance companies are trying to form a pool to handle the aviation insurance claims collectively. What is the latest progress in this regard?</strong></p>
<p style="text-align: justify;">
	I, too, have heard that some insurance companies are trying to tie &nbsp;up to form such a pool. But this is yet to get a concrete shape, as far as I know. I think the main objective behind forming such a pool is to reduce insurance risks in the aviation sector. We hope the pool will come into operation in the near future.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What future do you see for the aviation insurance business in Nepal?</strong></p>
<p style="text-align: justify;">
	The future of aviation insurance business is bright. As the government has already adopted a liberal economic policy, many new airliners have entered Nepal. Aviation insurance as a business has grown in Nepal with the growth in the domestic aviation sector. &nbsp;Air travel has become convenient and affordable for many Nepalis today. This has ultimately helped the aviation insurance business grow in the country.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Almost whatever the insurance companies earn from the aviation segment goes to the reinsurance companies abroad. Some are even said to be making losses in the aviation segment. It is said that the companies know that they are not going to make profits from the aviation segment. But they do aviation insurance just to show high amount of premium collections. What do you say?</strong></p>
<p style="text-align: justify;">
	It is obvious. Though, insurance companies should have retention capacities to bear the risks by themselves, most of them lack this. This is one of the reasons why they transfer their risks to the re-insurance companies. Consequently, Nepali insurance companies have to pay a high volume of premium to them. The margin between the premium collected from the airlines companies and the premium paid to the re-insurers is very small. It shows that they are not able to save even the cost to transfer their risks. They need to transfer funds to reinsurance companies. It is a very serious problem.&nbsp;</p>
<p style="text-align: justify;">
	<strong>How can we lower the high insurance premium?</strong></p>
<p style="text-align: justify;">
	First of all, the airlines should try to be safe from different risks. Other stakeholders like CAAN should also maintain the runways properly and other technical aspects, information dissemination practices etc. The pilots, too, should be well-trained. All other stakeholders in the aviation sector should take this matter seriously, work on it together and make careful collective efforts to avoid risks.</p>
<p style="text-align: justify;">
	<strong>Aviation insurance premium in Nepal is said to be among the highest in the world? Why is it so high?</strong></p>
<p style="text-align: justify;">
	Yes it is true. Since the premium is always determined by risks; a high risk ultimately draws a higher premium. This risk is mainly associated with aircraft accidents; the more the accident, the more the risks. We have been trying to reduce the risks in this sector which is known as mitigation of the risks.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The annual claims payout in the aviation sector has been constantly rising. Some people say this could further increase the already significantly high aviation insurance premium. How are we going to address this problem?</strong></p>
<p style="text-align: justify;">
	It is a compulsion for the aviation insurance business in Nepal. Generally, if the premium is high, the practice of insurance is low but in aviation insurance, if the premium is high you need to reinsure with other big companies because of the risk factor. You need to find reliable reinsurers, pay premium and transfer your risks to them. There is a direct and positive relation between the increasing rate of premium and the business of aviation insurance. However, if all these measures are properly adopted then the premium rate will be low.&nbsp;</p>
<p style="text-align: justify;">
	<strong>There are various types of aviation insurance policies in the world. Are all of them available in Nepal?</strong></p>
<p style="text-align: justify;">
	We have only few aviation policies which basically cover the aircraft, crew-members and passengers. It also covers the sky, and if both the parties agree, grounded risks are also included in the aviation insurance. Generally, an insurance policy depends on the requirement of the policy holder. Therefore, the requirements of the airliners play a key role in the agreement between the insurance companies and the airliners.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The country’s first-ever aviation insurance summit was organized in the capital recently. How helpful was this summit?</strong></p>
<p style="text-align: justify;">
	The summit was a milestone in Nepal’s aviation sector. It’s &nbsp;definitely a positive development. It helped the stakeholders in the aviation business to know each other and, at the same time, provided a platform to share their experiences, views and problems. I think the re-insurers, the under-writers and other stakeholders who participated in the programme knew the actual situation of Nepal and the aviation insurance business here. The summit was successful and the Nepali stakeholders have succeeded in addressing some of the key issue of the aviation insurance business in Nepal.</p>',
			'published' => true,
			'created' => '2013-03-16',
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			'keywords' => '',
			'description' => 'The margin between the premium collected from the airlines companies and the premium paid to the re-insurers is very small. It shows that they are not able to save even the cost to transfer their risks.',
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			'title' => 'Agriculture Focus: Ranjan Enterprises',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Ranjan Enterprises" height="48" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_corporate_focus_ranjan_enterprises_logo.jpg" style="text-align: justify;" width="227" /></p>
<p style="text-align: justify;">
	Ranjan Enterprises Pvt Ltd (REPL) under the banner of LPRANJAN GROUP is a business enterprise, established in 2001 to carry out business in the field of agriculture sector. Chairman of the group is Laxmanjee Prasad. It has two sister bodies Ranjan Enterprises Pvt. Ltd and Ranjan Trade Concern.</p>
<p style="text-align: justify;">
	REPL carries out business in the field of agriculture sector dealing in products under agrochemicals (organic and inorganic), organic fertilizers, seeds, public health insecticides, fertilizers (micronutrient &amp; chemicals), etc. REPL caters business by appointing dealers &amp; supplying to corporate houses engaged in agriculture business and own consumption.</p>
<div style="float:right;margin:0 0 5px 10px;">
	<p style="text-align: justify;">
		<img alt="Shashi Ranjan, Ranjan Enterprises" height="178" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_corporate_focus_ranjan_enterprises_shashi.jpg" width="150" /></p>
	<address>
		<strong>Shashi Ranjan</strong></address>
	<address>
		<strong>Director</strong></address>
	<address>
		<strong>Ranjan Enterprises Pvt Ltd</strong></address>
</div>
<p style="text-align: justify;">
	Sharing the purpose of establishment of the company, Shashi Ranjan Director of REPL said, “Our initial aim was to cater the remote regions of Nepal by setting up an integrated platform to provide the best quality and most reliable products throughout the country for the welfare of the farmers, plant growers and local consumers”.&nbsp;</p>
<p style="text-align: justify;">
	REPL plans to move into imports of fertilizers like Urea, DAP and MOP. Agriculture equipment like cultivator, harrow, tractors and mini tillers &nbsp;are the next areas where the company is planning to enter in the future. The company also plans to venture into agriculture farm by purchasing land and cultivating and growing vegetables and fruits and breeding livestock as well.&nbsp;</p>
<p style="text-align: justify;">
	REPL have recently launched fertilizers like Copper Sulphate, Ammonium Sulphate and Organic fertilizer named JAIVIK. REPL along with its sister concern has ventured into Agriculture Sprayers and Agriculture Shade Nets of different size and capacity.&nbsp;</p>
<p style="text-align: justify;">
	Director Ranjan shared that there is no turning points yet for them but because of trust and goodwill, they are able to win the hearts of consumers and also the corporate sector who have been doing business with them. With the trust, we have ventured into different fields of agriculture activities, says Ranjan.&nbsp;</p>
<p style="text-align: justify;">
	Ranjan Trade Concern (RTC) has been established to handle local business and related imports in FMCG and agriculture sector. Currently, the company plans to focus steps in taking further steps in trading business emphasising with imports, distributorships and general purchases of FMCG goods, industrial goodsn and agriculture products from around the world for trading, exclusively in the country. RTC also plans to move into import of chemicals, and petrochemicals.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Major Products</strong></p>
<p style="text-align: justify;">
	REPL have launched mass range agriculture. Insecticides, Fungicides, Rodenticides, Organic insecticides, organic fungicides, organic fertilizers, chemical fertilizers, Public Health Insecticides, Knapsack Sprayers, Garden Sprayers and spare parts, Agriculture shade nets and seeds are some examples.</p>
<p style="text-align: justify;">
	<strong>Human resource management&nbsp;</strong></p>
<p style="text-align: justify;">
	REPL has small human resource team. “Being a small business enterprise our team is small,” said director Ranjan. “But our team is well experienced to handle problems of farmers, especially in their fields such as pests’ management.”&nbsp;</p>
<p style="text-align: justify;">
	<strong>Corporate Social Responsibility (CSR)</strong></p>
<p style="text-align: justify;">
	While accepting that his organization is well aware of corporate social responsibility, director Ranjan said, “At present we have not moved directly into CSR projects but have plans to do so in near future”.</p>
<p style="text-align: justify;">
	<strong><span style="font-size:14px;"><span style="color: rgb(255, 0, 0);">SWOT Analysis</span></span></strong></p>
<p style="text-align: justify;">
	<b>Strength:</b></p>
<p>
	Farmers and other consumers Satisfaction &amp; trust&nbsp;</p>
<p>
	<span style="font-size: 14px;"><b><span style="font-size:12px;">Weakness:</span></b></span></p>
<p>
	<span style="font-size: 14px;"><span style="font-size:12px;">Still unable to tap new markets within the country due to lack of awareness and lack of new partners.&nbsp;</span></span></p>
<p>
	<span style="font-size: 14px;"><b><span style="font-size:12px;">Opportunity:</span></b></span></p>
<p>
	<span style="font-size: 14px;"><span style="font-size:12px;">Huge market for agriculture related product, rising awareness&nbsp;</span></span></p>
<p>
	<span style="font-size: 14px;"><b><span style="font-size:12px;">Threats:</span></b></span></p>
<p>
	<span style="font-size: 14px;"><span style="font-size:12px;">Unhealthy competition within the sector</span></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(255, 0, 0);"><br />
	</span></span></p>
<p style="text-align: justify;">
	<img alt="Ranjan Enterprises" height="129" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_corporate_focus_ranjan_enterprises_products.jpg" width="580" /></p>',
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	 </p>
<p style="text-align: justify;">
	<strong>By Rashesh Vaidya</strong></p>
<p style="text-align: justify;">
	Standard Charted Bank Nepal Limited is seen at number one position under the CAMELS Rating. The bank stood at the number one position as per the evaluation done on its second quarter financial report of the fiscal year 2012-13. The bank has been capable to maintain good total expenses to total assets ratio during the period among the 32 commercial banks. Similarly, the bank has also maintained good return on assets as well.&nbsp;</p>
<p style="text-align: justify;">
	The newly established commercial banks stood at the top rank under the EAGLES Rating. The low level of non-performing loan to total loan and advance ratio was the main reason behind these banks to stand at the top rank. Similarly, the high growth ratio of the loan and advances also boosted them to get top rank.&nbsp;</p>
<p style="text-align: justify;">
	As per the EAGLES rating, Commerze and Trust Bank Limited stood at the first position. Similarly, Sanima Bank Limited which was upgraded from the development bank to commercial bank came at second. &nbsp;The good position of the credit-deposit ratio and capital adequacy ratio of the newly opened bank has helped them to gain the top position.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The CAMELS system evaluates banks on the following six parameters:</strong></p>
<ol>
	<li style="text-align: justify;">
		<strong>Capital Adequacy: </strong>Capital adequacy has been the main pillar of existence of any bank. Banks have to maintain a proper mix of different types of capitals to avoid pressure on their dividend policies and inadequacy of total capital funds against the risk exposure. Capital adequacy is measured by the Capital to Risk-Weighted Assets Ratio (CRAR). A sound capital base strengthens the confidence of depositors.</li>
	<li style="text-align: justify;">
		<strong>Asset Quality:</strong> One of the indicators for asset quality is the ratio of non-performing loans to total loans (Gross Non-Performing Assets - GNPA). The gross non-performing loans to gross advances ratio is more indicative of the quality of credit decisions made by bankers. A higher GNPA is indicative of poor credit decision-making.</li>
	<li style="text-align: justify;">
		<strong>Management: </strong>The ratio of non-interest expenditures to total assets can be one of the measures to assess the working of the management. This variable, which includes a variety of expenses, such as payroll, workers’ compensation and training investment, reflects the management policy stance.</li>
	<li style="text-align: justify;">
		<strong>Earnings:</strong> It can be measured as the return on asset, ratio.</li>
	<li style="text-align: justify;">
		<strong>Liquidity:</strong> The ratio of cash maintained by a bank and balances with the central bank to the total asset, is an indicator of the bank’s liquidity.&nbsp;</li>
	<li style="text-align: justify;">
		<strong>Sensitivity to Market Risks/Systems and Control:</strong> Risks associated with adverse movements in the exchange rates (including gold positions), interest rates, liquidity and investment in equity are covered under market risk management. A bank faces market risks either from its investments in government securities and bonds or from the exchange rate risk that persist in matching position. The market risk is managed by the banks’ Asset and Liability Committee (ALCO) which assesses policies and levels of risk appetite. &nbsp;Similarly, the central bank of Nepal, Nepal Rastra Bank has made a provision of additional 2 percent of the total Risk Weighted Exposures by Supervisory Review.</li>
</ol>
<p style="text-align: justify;">
	<img alt="Top Ten Banks as per CAMELS and EAGLES" height="292" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_sectoral_banks_per_camels_and_eagles.jpg" width="580" /></p>
<p style="text-align: justify;">
	In the CAMELS rating system, each bank is assigned two sets of ratings:</p>
<ol>
	<li style="text-align: justify;">
		Performance Ratings, which comprise six individual ratings that address each of the CAMELS components; and</li>
	<li style="text-align: justify;">
		An overall Composite Rating, which is a single rating based on a comprehensive assessment of the bank’s overall condition.</li>
</ol>
<p style="text-align: justify;">
	Both the ratings are scored on a numerical scale of 1 to 5 in the ascending order of supervisory concern where “1” represents the best rating and “5” the worst.</p>
<p style="text-align: justify;">
	Here is a description of the rating scores for each of the five components:</p>
<p style="text-align: justify;">
	Rating 1 (A) indicates very strong performance</p>
<p style="text-align: justify;">
	Rating 2 (B) indicates above-average performance that adequately provides for a safe and sound operation of the BFIs.</p>
<p style="text-align: justify;">
	Rating 3 (C) indicates performance that is flawed to some degree.</p>
<p style="text-align: justify;">
	Rating 4 (D) indicates unsatisfactory performance which, if left unchecked, could threaten the solvency of the BFIs.</p>
<p style="text-align: justify;">
	Rating 5 (E) indicates very unsatisfactory performance and calls for immediate remedial attention for the survival of the BFIs.</p>
<p style="text-align: justify;">
	The rating of banks can be further developed by giving a score to each component of the CAMELS, known as the Composite CAMELS Rating Score. The Composite CAMELS Rating can be calculated as:</p>
<p style="text-align: justify;">
	Composite CAMELS Rating= C (0.25) + A (0.25) + M (0.25) + E (0.10) + L (0.10) + S (0.05)</p>
<p style="text-align: justify;">
	Each of the above six parameters can be weighted on a scale of 1 to 100 and contains a number of sub-parameters with individual weightage.</p>
<p style="text-align: justify;">
	The EAGLES system is able to measure and compare banks’ performance in a more determinate, objective and consistent manner. The name is derived from the key success factors confronting banks today, i.e. Earning Ability, Asset quality, Growth, Liquidity, Equity and Strategy. This approach has gained credibility among the banking community and fund management industry in Asia, for competition analysis and investment planning, respectively.</p>
<p style="text-align: justify;">
	<img alt="Sectoral, march 2013" height="514" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_sectoral_banks_ratios.jpg" width="580" /></p>
<p style="text-align: justify;">
	<strong>EAGLES evaluate banks on the following six parameters:</strong></p>
<ol>
	<li style="text-align: justify;">
		<strong>Earning Ability:</strong> Earning ability is shown by three noteworthy indicators – Return on Assets (ROA), Return on Shareholders’ Fund (ROSF) and Income/Overheads Ratio (IOR). The importance of IOR is usually not well understood. The main point lies in that income depends on external market forces, while overheads are highly influenced by internal staffing. So, the banks must know how to adjust the staffing according to the market demand for its products and services. This is shown by three indicators - ROA, Return on Net worth (RONW) and IOR.</li>
	<li style="text-align: justify;">
		<strong>Asset Quality:</strong> Asset quality is best assessed by on-site inspection of the bank’s loan portfolio. If this is not possible, asset quality can be measured by the level of bad debt provisions, that is, bad and doubtful debts (BDD) as a percentage of total loans. A conservative approach will dictate that the quantum of provision to err on the high side is rather low. This is best judged by the level of bad debt provisions, that is, bad and doubtful debts as a percentage of total loans. A conservative approach will dictate that the quantum of provision is on the high side is rather low.</li>
	<li style="text-align: justify;">
		<strong>Growth: </strong>Growth rates of loans and core deposits are the most important indicators of how a bank wants to position itself in the market.</li>
	<li style="text-align: justify;">
		<strong>Liquidity:</strong> Liquidity can be described as the ability of a bank to have sufficient funds to meet cash demands for loans, deposit withdrawals and operating expenses. For this reason, a balance should be made between the amount of deposits garnered and the quantum of loans extended. The indicator is the deposit-to-loan ratio or credit-deposit ratio (CD Ratio).</li>
	<li style="text-align: justify;">
		<strong>Equity:</strong> Equity level and capital adequacy have a profound impact on the bank. International guideline (Basel II) stipulates that a bank must have a minimum capital equivalent to 8 per cent of the risk adjusted assets. Even the central bank of Nepal, the NRB, has mentioned a comfort zone of 6 and 10 per cent of core capital and total capital funds, respectively, based on the risk-weight assets (percent).</li>
	<li style="text-align: justify;">
		<strong>Strategy:</strong> The effective management of a bank’s strategy is indicated by the strategic response quotient (SRQ). It assesses the management’s ability to lend, garner deposits, generate fee-based income and manage the operating cost. An appropriate balance of the three core banking activities depends on the bank’s strategy. The SRQ is obtained by dividing the interest margin by net operating cost (that is, total operating cost minus fee income).</li>
</ol>
<p style="text-align: justify;">
	Seventeen banks could not feature on the top-ten list under both ratings. The banks with negative capital adequacy ratio and very low return on assets were seen behind in ranking under CAMELS rating. &nbsp;Similarly, the banks with huge amount of non-performing loan and negative return on assets were seen at the lowest rank under EAGLES rating.</p>',
			'published' => true,
			'created' => '2013-03-23',
			'modified' => '2013-04-17',
			'keywords' => '',
			'description' => 'The good position of the credit-deposit ratio and capital adequacy ratio 
of the newly opened bank has helped them to put at top position.',
			'sortorder' => '771',
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	(int) 2 => array(
		'Article' => array(
			'id' => '886',
			'article_category_id' => '47',
			'title' => 'A Balanced Life',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img alt="Sumit Kedia, Personality, March 2013" height="432" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_personality_sumit.jpg" width="450" /></p>
<p>
	Sumit Kedia, the Executive Director of Kedia Group and the Director of Sita Ram Gokul Milks Ktm Ltd, vividly remembers the time when his company was deep in debt and was on the verge of being sold out. “Those were the most stressful times of my life. The Bank had no trust upon us, and the entire Group was about to be blacklisted,” recalls Kedia. It all happened immediately after he joined the company after completing his studies.&nbsp;</p>
<p>
	<strong>Making first moves</strong></p>
<p>
	New to the business and the entire business scenario of Nepal back then, Kedia says he was overwhelmed by the situation at first. Gradually, he with the help of the Group was able to convince the banks to give some leverage to the company. One of the banks agreed to swap the loan and with some arrangement, he was able to pay off the entire loan after some time.&nbsp;</p>
<p>
	On the management part, he made the backward linkage strong by directly interacting with the farmers and thus, creating an economic interdependence. This, in turn, improved the quality and quantity of the raw material. “I personally met the farmers; I went to cow sheds and educated them. As a result, we received better quality raw material and enjoyed more security than our competitors,” explains Kedia. He also introduced new technology and updated the equipments used in the factory. This significantly enhanced the efficiency and the cost of production went down as well.</p>
<p>
	<strong>Carving a niche</strong></p>
<p>
	All of Kedia’s efforts have finally paid off. Today, Sita Ram Gokul Milks, a sister concern of Kedia Group is nation’s leading dairy processor and distributor, with production capacity of more than 2.86 million gallons of milk per year. The company has completed the journey of 17 years, and operates through a highly advanced technological plant with latest machineries producing milk and dairy products like milk, ghee and butter. The company is all set to produce flavoured milk and paneer within the next month. &nbsp;</p>
<p>
	Kedia firmly believes that responsibility with accountability is the mantra to success. “Nothing can be achieved alone, but a responsible and accountable team working for a common goal can achieve almost anything,” says Kedia. Kedia has been taking care of Sita Ram Gokul Milks for the last 10 years.&nbsp;</p>
<p>
	<strong>Memory lane</strong></p>
<p>
	Born to Bishwa Nath Kedia and Krishna Devi Kedia in Birgunj in 1976, Kedia did his entire schooling and higher education in India. During his school years, he was a hostel student in Darjeeling and Mussoorie. He completed his high school in Delhi and graduated from DAV College in Chandigadh, and completed his post graduation in MBA from Symbiosis Institute of Business Management of Pune.&nbsp;</p>
<p>
	As a child, most of his time was spent in hostel. “I used to come home only for holidays, so found it hard to adjust with my family. I was more comfortable with my friends than with my family,” recalls Kedia. He was home only for a few months in a year and also was oblivious of the development of the family group, Kedia Group.</p>
<p>
	After completing his education, he returned home and all of a sudden he was in family atmosphere that he wasn’t much used to, and also was into business abruptly. “I really found it hard to manage the three major parts of my life, my friends circle, my family and my business. &nbsp;But today, I have balanced all three aspects of my life,” says Kedia. &nbsp;As he became more involved with family and business, his friends circle shrunk. Today, Kedia says family and business are his top priority.&nbsp;</p>
<p>
	Married for 10 years with Ritu Kedia, Kedia is a father of a son and a daughter, Rachit Kedia and Shristi Kedia. His marriage was an arranged one and he didn’t even know her wife very well before marriage. “We were given just half an hour to discuss and decide. Within that short time, I fell in love with her eyes, and I immediately said yes. I’m happy I made the right decision,” shared Kedia.&nbsp;</p>
<p>
	<strong>Social involvement</strong></p>
<p>
	Kedia is involved with Round Table Nepal, an international fraternity with both business and family gatherings. “In this fraternity, there are people from business community and also their families. This has given me friends for life, with same wavelength. We go on various outings and picnics through the fraternity,” says Kedia. &nbsp;He usually spends his evenings and weekends with the friends of the fraternity, but still feels there is nothing like childhood friends. &nbsp;Kedia is also the First Vice President of Nepal Dairy Association and has been the Director of National Dairy Development Board for two tenures.&nbsp;</p>
<p>
	<strong>Finding inner peace</strong></p>
<p>
	&nbsp;As a student, Kedia loved to play basketball and was also in the college team. “I’d still love to play now, but my business doesn’t really allow me to do that anymore. However, after a stressful day, I like to give some time only to myself,” says he. He is a member of health club in Radisson hotel, loves swimming sauna and steam, and does cardio exercises. Kedia says he isn’t much into books, watches movies at times, doesn’t really care about gadgets. “I’m a simple person with simple desires; I want to lead a simple and modest life. I don’t believe in showing off and pretence. Kedia travels for work and leisure, but thinks he needs to take more vacations “I need to improve this part of my life. I don’t take many vacations. I’m trying to do it this year, may be ill go to Switzerland this year with my family,” says Kedia. &nbsp;&nbsp;</p>
<p>
	<strong>Changed dream</strong></p>
<p>
	Growing up, Kedia had dreams of being in hospitality and tourism business. He dreamt of owning a hotel as a graduate student and he even applied to study Hotel Management in Switzerland after graduating, but says it didn’t work out. Life had other plans for him. “As a member of a huge joint family, family’s dreams and decision always meant more than that of a member. Family’s decision mattered more to me, and I was needed in the group. So, I gave up my dream for my family,” shared Kedia.&nbsp;</p>
<p>
	<strong>Experience speaks</strong></p>
<p>
	Introvert by nature, Kedia says he is a shy guy. Once he was invited as a chief guest at a co-operative’s AGM. He had to give a speech in public, but he became very nervous and he completely blacked out. “I don’t even remember what I said there. With time, I improved my public speaking skills and I have no problem with that today,” says Kedia.&nbsp;</p>
<p>
	Kedia sees Vinod Chaudhary is his idol, and says his struggle and success has always been an inspiration to him. &nbsp;Kedia had family relations with Chaudhary, and personally knew him as he is also a member of Young Entrepreneur Forum (YEF) under Confederation of Nepalese Industries (CNI). He also sees Shankar Lal Kedia, his uncle as idol within his family.&nbsp;</p>
<p>
	Kedia opines that capital should stay within the country, regardless of the challenges faced by businessmen and entrepreneurs. According to him, rather than criticising the government and society, one should maintain a positive mentality and enhance the economy with a combined team spirit. He also feels that the spirit of ‘us’ is needed for development of a family, an organisation and an entire nation.</p>
<p>
	<strong>Foreseeable future</strong></p>
<p>
	As for his future plans, Kedia is not in investment mode now, as he feels there is no stability in the country. He thinks at such a point, it’s wise to retain what he has. New ventures may be started only after the problem of labour and load shedding are over. &nbsp;</p>
<p>
	Kedia says he loves his profession, and work is his worship. He feels that he needs to do something for the company till he retires. “I work together with all my staffs, all my team, not just my personal growth, but also for their growth, I like to see through the perspective of ‘us’ rather than ‘me’. I like to create a win-win situation for all,” says Kedia.&nbsp;</p>
<p>
	Kedia says that if all goes well, he may also be involved in the hospitality business. “After all, fulfilments of inner desires give you true satisfaction. It was always my dream to be in the sector. Let’s see what future has in store,” Kedia is optimistic.</p>
<div style="text-align: justify;">
	<img alt="Sumit Kedia with Family" height="378" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_personality_sumit_with_family.jpg" width="514" /></div>',
			'published' => true,
			'created' => '2013-03-23',
			'modified' => '2013-04-17',
			'keywords' => '',
			'description' => 'Life always has equal share of success and failure, one should never forget his roots when he is on top of success and one shouldn’t let the fire inside him die out when faced by failure, says Sumit Kedia a young business person, rephrasing what he learnt from his uncle Shankar Lal Kedia.',
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	(int) 3 => array(
		'Article' => array(
			'id' => '885',
			'article_category_id' => '48',
			'title' => 'Poems By Professionals',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	Nepal&rsquo;s business community has now ample time for rejuvenated aesthetic sense and cascading creativity as there is no business, no money and virtually no work as country reels under seemingly never-ending uncertainty. Many businessmen and professionals have thus tried to solace themselves by expressing pangs and pains in poetry. Here are few scattered pieces of poems taken from their diary. Please read them all:</p>
<p>
	&nbsp;</p>
<p>
	&nbsp;</p>
<p>
	<strong>From a banker:</strong></p>
<p>
	<em>A liquidity crisis again envelops&nbsp;</em></p>
<p>
	<em>Base rate, KYC, Basel III to adhere</em></p>
<p>
	<em>In a market highly flawed</em></p>
<p>
	<em>By the grace of self declared Gods.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a realtor:</strong></p>
<p>
	<em>It boggles me how fast</em></p>
<p>
	<em>The land under me caved in</em></p>
<p>
	<em>Why all fingers pointed to me</em></p>
<p>
	<em>Not the chaps aired the bubble first?</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a jeweler:</strong></p>
<p>
	<em>Random walk of &nbsp;price of gold</em></p>
<p>
	<em>Sellers are at the hold</em></p>
<p>
	<em>Buyers feel over-sold.</em></p>
<p>
	<em>But the reality is never told.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From an investor:</strong></p>
<p>
	<em>Just look at the NEPSE index</em></p>
<p>
	<em>Leaves anyone always perplexed</em></p>
<p>
	<em>As market is bullish taking on risk</em></p>
<p>
	<em>Erring politics smashes it in brisk.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From an economist:</strong></p>
<p>
	<em>The affair of the state is iffy&nbsp;</em></p>
<p>
	<em>The guardian angels acting sneaky&nbsp;</em></p>
<p>
	<em>The mood is damp, almost piffy</em></p>
<p>
	<em>And economy stands fiscal cliffy.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a wage-earner:</strong></p>
<p>
	<em>No job, what else to mention?&nbsp;</em></p>
<p>
	<em>No relief from perennial privation,</em></p>
<p>
	<em>The minimum wage in the nation</em></p>
<p>
	<em>Is never tied to the rate of inflation.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a business leader:</strong></p>
<p>
	<em>We must certainly preface&nbsp;</em></p>
<p>
	<em>Taxing few honest and rich</em></p>
<p>
	<em>As the socialists these days profess</em></p>
<p>
	<em>Will not fill ravine of whopping deficit.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a social planner:</strong></p>
<p>
	<em>We are finding it absurd</em></p>
<p>
	<em>Plans we heard were never delivered</em></p>
<p>
	<em>But all the party comrades did prosper&nbsp;</em></p>
<p>
	<em>People left to have suicide preferred.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a political economist</strong></p>
<p>
	<em>When will parties exhibit maturity?</em></p>
<p>
	<em>Help create stable income and security</em></p>
<p>
	<em>So there could be a sense of certainty&nbsp;</em></p>
<p>
	<em>And markets start to behave with surety.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a planner:</strong></p>
<p>
	<em>Do policy makers really have any plan</em></p>
<p>
	<em>On jobs, inflation and population?</em></p>
<p>
	<em>If it isn&rsquo;t the leaders concern&nbsp;</em></p>
<p>
	<em>What if we lose our temper soon?</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>Finally, from a voter:</strong></p>
<p>
	<em>Our ears can&rsquo;t hear anymore sermon</em></p>
<p>
	<em>About job creation and developed nation.</em></p>
<p>
	<em>We need more apprenticeship skills</em></p>
<p>
	<em>That meets our needs and fixes growth ills.&nbsp;</em></p>
<p>
	<em>Is there anybody to listen?</em></p>
<div>
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-03-23',
			'modified' => '2013-10-21',
			'keywords' => '',
			'description' => 'Nepal’s business community has now ample time for rejuvenated aesthetic sense and cascading creativity as there is no business, no money and virtually no work as country reels under seemingly never-ending uncertainty.',
			'sortorder' => '769',
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	),
	(int) 4 => array(
		'Article' => array(
			'id' => '884',
			'article_category_id' => '45',
			'title' => 'Corporate Movements February 2013',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="color:#f00;"><strong><span style="font-size: 16px;">Newcomers</span></strong></span></p>
<p>
	<img align="left" alt="Jhalak Prasad Khanal" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/jhalak_corporate_movements_feb2013.jpg" style="margin: 0px 10px 0px 0px;" width="100" /></p>
<p>
	<strong>Jhalak Prasad Khanal</strong>has joined Vibor Bikas Bank Ltd as CEO after Ajay Ghimire, the founding CEO of the bank resigned last month. Earlier, Khanal was CEO of Siddhartha Development Bank.</p>
<p>
	 </p>
<p>
	 </p>
<p>
	 </p>
<p>
	<img align="left" alt="Ramesh Ghimire" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/ramesh_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /><strong>Ramesh Ghimire&nbsp;</strong>has joined Sarada Group (SPG Trading Pvt Ltd.) as Chief - Sales &amp; Marketing. Earlier, he was Head – Sales &amp; Marketing at Robin Export Import Marketing Pvt. Ltd.</p>
<p>
	 </p>
<p>
	 </p>
<p>
	 </p>
<p>
	<img align="left" alt="Sanjay Ballav Pant" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sanjay_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /><strong>Sanjay Ballav Pant&nbsp;</strong>has joined Standard Chartered Bank Limited as Head of Audit. Earlier, he was at Janata Bank as Head of Audit.&nbsp;</p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	 </p>
<p>
	 </p>
<p>
	<strong>Dr Khem Raj Bhetwal</strong> has joined Rising Development Bank Limited, Narayangarh as CEO.</p>
<p>
	 </p>
<p>
	<strong>Milan Mani Sharma </strong>has joined Ncell as Spokesperson. Earlier, he was Bureau Chief at The Republica English daily.</p>
<p>
	 </p>
<p>
	<img align="left" alt="Mani Ram Pokhrel" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/mani_corporate_movements_feb2013.jpg" style="margin: 0px 10px 0px 0px;" width="100" /></p>
<p>
	<strong>Mani Ram Pokharel&nbsp;</strong>has been appointed as Chief Executive Officer at Sambridhi Bikas Bank Ltd., Gajuri. Earlier he was Chief Business Officer at H &amp; B Development Bank Ltd. Kathmandu.</p>
<p>
	 </p>
<p>
	 </p>
<p>
	 </p>
<p>
	<strong style="font-size: 16px; color: rgb(255, 0, 0);">Newcomers at Sunny Distillery Pvt. Ltd.</strong></p>
<p>
	<strong><img align="left" alt="Alok Baral" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/alok_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /></strong></p>
<p>
	<strong>Alok Baral</strong> has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Govinda Kumar Shrestha" height="121" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/govinda_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Govinda Kumar Shrestha&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Luv Dhoj KC" height="120" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/luv_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Luv Dhoj KC&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Narayan Baral" height="120" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/narayan_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Narayan Baral&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Santosh Raj KC" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/santosh_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Santosh Raj KC&nbsp;</strong>has joined Sunny distillery Pvt Ltd as a Head-Trade &amp; Marketing, Earlier he was Sr. TSE at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Suman Maharjan" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/suman_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Suman Maharjan&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Robin Shrestha" height="122" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/robin_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Robin Shrestha&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sr. Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>Ramesh Shrestha&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<span style="color:#f00;"><span style="font-size: 16px;"><strong>Promotions</strong></span></span></p>
<p>
	<strong><img align="left" alt="Hari Sharma Neupane" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/hari_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /></strong></p>
<p>
	<strong>Hari Sharma Neupane</strong> has been promoted as Regional General Manager for Bottlers Nepal (Terai) Ltd. Earlier, he was Country Human Resource Manager in Bottlers Nepal Ltd.</p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Bala Ram Bista" height="121" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/bala_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Bala Ram Bista&nbsp;</strong>has been promoted as General Manager of Sunrise Bank Limited. Earlier, he was Deputy General Manager at Sunrise Bank’s head office.</p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Prakriti Tuladhar" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/prakriti_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Prakriti Tuladhar&nbsp;</strong>has been promoted as Finance Controller of Bottlers Nepal Limited. Earlier, she was Regional Finance Manager.&nbsp;</p>
<p>
	<strong><span style="font-size:16px;"><br />
	</span></strong></p>
<p>
	<strong><span style="font-size:16px;"><br />
	</span></strong></p>
<p>
	<strong><span style="font-size:16px;"><br />
	</span></strong></p>
<p>
	<strong><span style="font-size:16px;"><br />
	</span></strong></p>
<p>
	<strong><span style="font-size:16px;">Resignations</span></strong></p>
<p>
	<strong><img align="left" alt="Rabin Shrestha" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/rabin_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /></strong></p>
<p>
	<strong>Rabin Shrestha</strong> has resigned from Standard Chartered Bank Limited as the Head of Audit.</p>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>',
			'published' => true,
			'created' => '2013-03-16',
			'modified' => '2013-03-16',
			'keywords' => '',
			'description' => 'Corporate Movements for the month of February',
			'sortorder' => '768',
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	(int) 5 => array(
		'Article' => array(
			'id' => '879',
			'article_category_id' => '57',
			'title' => 'Replica Of Brands',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Sajag Karki</strong></p>
<p>
	<img align="right" alt="Brand Talk, February 2013" height="674" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/brand_talk_feb2013.jpg" style="margin:0 0 0 10px;" width="220" /></p>
<p style="text-align: justify;">
	Nike, Reebok, Ray Ban, Gucci, Armani - you name it and there are replicas of every brand imaginable. There are many such replicas of brands available which people tend to purchase knowingly or unknowingly as the original one. One may think what difference would it make and who could identify the real one? Well, one might be right for all of them look the same at a glance. Also, the replicas give huge respite to those consumers who cannot afford the real offering of the brand. Hence, there is a huge market for this ranging from high quality replicas to the dirt-cheap ones. However, fake is fake and if one takes a closer look at it, one can easily identify and feel the difference. The fake ones have blurred logos, bad packaging, inferior materials which could even harm the user. People who are loyal to their brands and who know the essence of brand always buy the original products no matter how high the cost may be. It is not just about sporting a fake logo in the product, for them it’s about their association with the brand which gives them their identity. In western countries like in the US there are tougher laws that protect from replicating branded products. Intellectual property like movies and any other creative work also have copyrights.&nbsp;</p>
<p style="text-align: justify;">
	It’s no big secret that copies of brands are easily available in the market with varying degree of quality. Every now and then we hear about logos being copied from well known companies. This is a shame to the business and an insult to the creativity of the designer. Business law states that a registered trademark cannot be used by others especially if it is of a well-known one because of its familiarity. Even the prevailing Nepali law states that the same name cannot be used by two different companies. Similarly, similar names that could confuse a customer, too, should be avoided. A logo, say of McDonalds, cannot be copied as it is a well known icon. You can get a Ray Ban for as cheap as anything from a roadside vendor while the original product bought from its branded showroom costs ten times more. There is undoubtedly a significant market for consumers of such fake products, thanks to the “Made in China” brand which mass-produces copies of almost all big brands. As there are no strict rules followed by the concerned authorities regarding patent rights, nobody seems to care about it and people are happy with the replicas. “Do as Romans do in Rome” seems to have become the norm.&nbsp;</p>
<p style="text-align: justify;">
	Looking at the practical side of things, it wouldn’t have been possible for consumers of many developing countries to purchase branded products if it weren’t for the much affordable replicas. Hence, with high quality replicas people are able to quench their thirst for their favourite brands which would have otherwise not been feasible. Thousands of people use these products every day, thanks to the leverage of the original brands that has made it possible.&nbsp;</p>
<p style="">
	<span style="font-size:11px;">The Article is based on research and author’s practical experience as a marketing and advertising professional. He can be reached at sajag_karki@hotmail.com.</span></p>',
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			'description' => 'There are many such replicas of brands available which people 
tend to purchase knowingly or unknowingly as the original one.',
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			'id' => '878',
			'article_category_id' => '41',
			'title' => 'Days Of Pure Portland Cement Gone Forever Time For PPC/PSP (Blended Cement)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Rajendra Prakash Manandhar</strong></p>
<p style="text-align: justify;">
	In 1984, I had just returned to Kathmandu after studying Cement Technology (1st batch) at CRI/NCB India. One of my friends asked me about the best type of cement which would last long and resist the polluted environment. We have seen in many toilets, drainpipes, roofs of buildings and other different places the cement plaster being deteriorated by urine, domestic waste, heat, polluted environment etc. I was once in a paper factory in Nepal. The factory had two concrete tanks, plastered with OPC cement. One tank was used for cold water and the other for warm water. The plaster in the warm water tank was cracked &amp; falling, but nothing had happened to the cold tank. At our homes, we notice water leaking and its spot spreading on the concrete ceiling. At many other places, we see hair cracks on the plastered wall. These are some of the common problems with OPC. The best way to minimize such problems is to use PPC/PSC instead of OPC.</p>
<p style="text-align: justify;">
	During the 9th International Congress on the Chemistry of Cement, New Delhi, India in 1992, one of the delegates had presented some video clips showing the difference between OPC &amp; PPC. The clips showed that two cement bars - one made of OPC and the other with PPC were kept immersed in water for 15 years. Both the bars had a steel rod inside. After 15 yrs, when the bars were opened, it was found that the steel rod in the PPC bar was fresh and Shinning like &nbsp;before, but the steel rod inside the OPC bar was found corroded and damaged. Thus the clips demonstrated the quality of PPC.</p>
<p style="text-align: justify;">
	AM Neville, an expert from world authority on cement &amp; concrete puts his view on PPC use: “The various cementitious materials- fly ash, silica fume, blast furnace slag, are here to stay. In their various ways and under various circumstances, they all have an important role to play in concrete, the days of Pure Portland Cement, once upon a time lauded by cement manufacturers have gone forever. Portland is vital ingredient, but the other cementitious materials are highly valuable”.</p>
<p style="text-align: justify;">
	A Pozzolanic cement consisting of ground clay and portland cement was described in 1909 by Potter, who stated that over 5000 tons of it were used in fresh water and seawater construction about that time. Later, this cement was known as Potter Cement. For many years up to about 1915, the Lafarge Company in France used burnt clay in to manufacture ‘undecomposable’ cement. A cement composed of 70 per cent Portland cement &amp; 30 percent burnt clay was used to build the Sennar Dam on the Blue Nile from 1919 to 1925. The same material (Oil-well Cements manufactured in Great Britain) was used in construction of the Bonneville Dam in the USA. Burnt clay, an excellent artificial Pozzolana, is produced by burning suitable clay or shale at a temperature of 600° to 900° and above. Artifical pozzolanas &nbsp;are burnt clays and shales, spent oil shales, burnt maize/ rice husks, burnt moler and pulverized fuel ‘fly ash’ whereas volcanic deposits are natural Pozzolana.</p>
<p>
	<strong>Effect of pozzolana addition on hydration and performance of PSC</strong></p>
<p style="text-align: justify;">
	Pozzolana was added (5-25% by weight) to the binary blends (OPC + Slag) and the resulting ternary blends were subjected to hydration and the performance was studied. The results indicated that addition of Pozzolana up to 10 per cent does not affect the properties of the binary system significations. It has also been observed that the ternary blends show better sulphate resistance compared to the binary blends.&nbsp;</p>
<p style="text-align: justify;">
	The production and use of blended cement, especially PPC, has gradually increased worldwide in recent years. Its larger use in different countries is an indicator of its acceptability as well as suitability for various types of construction. Industrial wastes or the by–product ‘fly ash’ from thermal power stations and slag from steel plants are used for making blended cements such as Portland Pozzolana Cement (PPC) and Portlant Slag Cement (PSC). More than 50 per cent of the blended cements produced is PPC today. Blended cements such as PPC and PSC offer unique advantages to the concrete. In other words, PPC is better than OPC in terms of quality, and strength, and has &nbsp;a longer life than OPC. We could compare these unique characters of PPC with the antibodies in the human body that protect from different diseases.&nbsp;</p>
<p>
	<strong>OPC is made by grinding Clinker and Gypsum&nbsp;</strong></p>
<p style="text-align: justify;">
	One ton of clinker requires approx 1.5 tons of limestone whose reserves are limited. PPC/PSC is manufactured by grinding clinker with fly ash/slag and gypsum or blending OPC with fly ash and slag. Thus, limestone consumption can be reduced by producing PPC/PSC.</p>
<p>
	OPC:<span class="Apple-tab-span" style="white-space: pre;"> </span>Clinker 95%+ Gypsum 5%</p>
<p>
	PPC:<span class="Apple-tab-span" style="white-space:pre"> </span>Clinker 70% + Gypsum 5% + Fly ash 25%</p>
<p>
	PSC:<span class="Apple-tab-span" style="white-space:pre"> </span>Clinker 45% + Gypsum 5% + Slag 50%, (depending upon quality of Slag)&nbsp;</p>
<p style="text-align: justify;">
	Nepal Bureau of Standard has formulated the standard for PPC and PSC. PPC/PSC produced has to meet the quality parameters laid down for specific cement type. Generally engineers/ consultant/ and builders contractors decide on the type of cement to be used in the construction of houses, building roads, water tanks etc. Design parameter, types of construction, ground condition, durability requirement and environmental conditions are important factors while selecting the appropriate type of cement for any application.</p>
<p>
	<strong>Extra Qualities Benefit of PPC</strong></p>
<p style="text-align: justify;">
	PPC provides numerous environmental benefits such as conservation of limestone, reduction in green house gases in cement manufacturing and utilization of industrial wastes/ by-products &nbsp;- fly ash. It thus increases production of cement in the country. The government can take more benefit by collecting more tax on technical grounds and economics. There is a sound case for use of PPC in concrete due to:</p>
<ul>
	<li>
		Water resistance due to high density concrete</li>
	<li>
		Improves workability of concrete&nbsp;</li>
	<li>
		Reduces bleeding&nbsp;</li>
	<li>
		Reduces heat of hydration preventing cracks</li>
	<li>
		No need to add any plasticizer like cement silica.&nbsp;</li>
	<li>
		Higher bang ultimate strength</li>
	<li>
		Reduces permeability of concrete enhanced&nbsp;</li>
	<li>
		Gives strength, has higher durability than OPC</li>
	<li>
		Higher resistance to sulphate and chloride&nbsp;</li>
	<li>
		Better resistance to alkali – aggregate reaction&nbsp;</li>
	<li>
		Reduces leaching calcium hydroxide&nbsp;</li>
	<li>
		Low volume (shrinkage) change preventing cracks.</li>
</ul>
<p style="text-align: justify;">
	Hydration of Ordinary Portland Cement (OPC): Hydration is the chemical process by which slilicates and aluminates of the cement clinker, when mixed with water, form hydrated compounds and during the course of reaction produce Calcium Hydroxide and Calcium Silicate Hydrate as shown in the following chemical equation:</p>
<p>
	<strong>Cement + Water→C-S-H + Ca (OH) 2</strong></p>
<p style="text-align: justify;">
	The compound Ca (OH) 2 being easily soluble in water leaches out of the concrete surface. This leached Ca (OH)2 deposits on the surface as a coating layer cause deterioration of the concrete.</p>
<p>
	<strong>Hydration of Portland Pozzolana Cement /Portland Slag Cement: &nbsp;</strong></p>
<p style="text-align: justify;">
	When water is added to PPC/PSC, hydration of OPC constituents occurs first. This is known as primary hydration. During this process, the calcium silicates of OPC reacts with water to produce Calcium Silicate Hydrate gel and Calcium Hydroxide. Subsequently, fly-ash / slag present in cement hydrate in presence of Ca (OH) 2 produced during OPC hydration, produces further Calcium Silicate Hydrates. This process is known as secondary hydration. This makes the hydrated silicate gel structure of PPC/PSC more denser and contributes to higher durability of the concrete. But in OPC hydration, the liberated Ca(OH)2 forms a coating layer on the concrete, which is weak and is therefore removed by external pollutants/environment causing deterioration of the concrete. But this Ca(OH)2 is utilized in PPC/PSC in formation of C-S-H (II) which is &nbsp;stronger than C-S-H(I) thus reinforcing the original silicate gel (I) to produce a much denser gel structure which contributes to a higher degree of strength and durability. More and more Ca (OH) 2 is &nbsp;absorbed preventing formation of coating as shown in the following chemical equations: &nbsp;&nbsp;</p>
<p>
	<strong>Clinker + Water → C-S-H (I) + Ca (OH) 2</strong></p>
<p>
	<strong>Ca (OH)2 + Fly Ash/ Slag → C-S-H (II)</strong></p>
<p>
	Concrete is not a structural material by itself but it slowly evolves into a structural material in four &nbsp;stages which are: &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;</p>
<p>
	<strong>1-Plastic, 2- Stiffening (setting), 3- Hardening, 4- Enduring</strong></p>
<p style="text-align: justify;">
	<img alt="Cement, Sectoral February 2013" height="276" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_rajendra_prakash_feb2013.jpg" width="580" /></p>
<p style="text-align: justify;">
	In the plastic stage of concrete, the fineness and initial setting time is important. In the stiffening stage, final setting time is important. Tri–Calcium aluminate (C3A) of cement helps in this. In the hardening stage, C3S, C2S, strength and fineness are of vital importance. But the most important stage for durability of the concrete structure is the enduring stage. In this stage, the high quality cement parameters balanced physical and chemical parameters, high strength, low impurities, high soundness, optimum fineness etc can only contribute to the durability and high performance of the concrete structure. Today’s needs are not only high 28-day strength of cement but also high quality cement with (TOTAL QUALITY ATTRIBUTS) EXTRA QUALITY BENEFITS other than strength. These benefits are the resultant products of best clinker &amp; fly ash/ slag of high quality and gypsum in desired proportion to achieve high ultimate physical/ chemical properties. There are a number of parameters to be controlled as inputs during clinker production. Among them, correct proportioning of oxides CaO, SiO2, Al2O3, Fe2O3 which is termed as raw mix design and proportioning raw materials is most important. The proportioning C3S, C2S, C3A, C4AF are fixed after raw mix design. The preferable ranges of these compounds are 45-55, 20-30, 5-8, 8-12 etc. Strict quality control of raw materials, cement, process control are to be carried out. In the same way, the blending material fly ash should be according to the parameter given by Nepal Standard NS285.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Application of PPC&nbsp;</strong></p>
<p style="text-align: justify;">
	PPC can be used in almost all kinds of construction where OPC is used. For example, general building construction (residential, commercial, and industrial), bridges, flyovers, culverts, dams, irrigation projects, water retaining structures, ports &amp; harbours’ etc - except where high early strength is critical. Taking into account the special properties of concrete made from PPC, there are specific types of job where the use of PPC would be particularly advantageous. These are:</p>
<ul>
	<li>
		Mass concrete used for dams, bridges, piers etc where low heat of hydration is desirable</li>
	<li>
		In hydraulic structures where water tightness is desired</li>
	<li>
		Concrete in saline environment such as pole foundation works etc</li>
	<li>
		In marine structure where impermeability and resistance to attack by sea water are important</li>
	<li>
		In sewers and other structure subject to acidic or sulphate attack</li>
	<li>
		In construction of swimming pools</li>
	<li>
		In construction of stadia where durability and ultimate &nbsp;high strength is &nbsp;required</li>
</ul>
<p style="text-align: justify;">
	Some construction engineers believe that the concrete made with PPC needs longer curing than OPC concrete. Actually, however, curing is required for all types of cement as long as possible. Some paints the concrete with oil, others cover it. Anyway the water mixed during casting the concrete is to preserve/save from evaporation due to atmospheric temperature.</p>
<div>
	<img alt="Sectoral February 2013" height="189" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_rajendra_prakash_feb2013(2).jpg" width="580" /></div>
<div>
	 </div>
<div>
	<div style="text-align: justify;">
		In major constructions, consumers/users hesitate to use Nepali cement except for a few brands. In order to substitute the import of cement, cement manufacturers have to be honest in qualities, attributes or extra quality benefits. Also, the Cement Association of Nepal has to commit fully to manufacture high quality and healthy cement which may have a long life and may also compete with the imported cement. Hence, the Association has to play a significant role in promoting PPC and highlight its usefulness. It can create awareness in the government, builders, users, contractors, construction engineers etc. That will also help to dispel the apprehension with regards to using PPC for construction works.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		PPC offers several unique advantages to the concrete and has gained universal acceptance. This article gives information on different aspects of PPC such as historical facts, its short chemistry, production, applications, and advantages. The concerned government authorities, designers etc are required to make a conscious choice between OPC and PPC according to the application and requirement and recommend using PPC in all construction works. Construction needs are durability against increased pollution level and environment effects.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		In some plants in Nepal, the clinker produced from a vertical shaft kiln (VSK) is mixed with rotary kiln clinker to produce cement. In one clinker plant in Nepal, imported cement is mixed during cement production. Also we have seen/heard that imported or other cements are mixed with Nepali (local) cement in construction. A cement plant owner in western Nepal has used imported cement to build his own building. A proper raw mix design and proportioning raw materials produces the best cement clinker, and there is no need to mix other clinker/cement to increase the so-called “SHAKTI” (strength) of cement.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Finally, for manufacturing PPC, clinker quality is of primary importance. To avoid illusion over VSK clinker Quality and to boost the morale of VSK owner and interested potential parties, here are some compressive strength data which are being received from the trial production of a modern VSK 500 ton per day plant of Rolpa Cement (P) Ltd. It is indeed a surprising data, not easily believable. A right “Raw Mix Design” (For VSK/ rotary kiln) is a manufacturing prescription to produce the best clinker which contributes in durability of PPC concrete after mixing with Pozzolana (fly ash). It is also a fact that 60 per cent of cement in China is produced from VSK. Productivity is a state of mind whereas making a Megh Quality Clinker is an art.</div>
	<div style="text-align: justify;">
		 </div>
	<div>
		<span style="font-size:11px;">The author has worked at Himal Cement, Jagadamba Cement, Siddhartha Cement, Cosmos Cement. At present, he is associated with Rolpa Cement (P) Ltd as Senior QC/Production Manager and can be contacted at rajendramdr@yahoo.com.&nbsp;</span></div>
</div>
<div style="text-align: justify;">
	 </div>',
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			'id' => '877',
			'article_category_id' => '41',
			'title' => 'Responsible Business Endeavour',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong style="text-align: justify;">By Rajendra Desai</strong></p>
<p style="text-align: justify;">
	Nepal is bestowed with diversity in nature, religion, culture and people. This beautiful Himalayan country has witnessed a constantly changing social and economic dynamics over the years. In the last two decades, Nepal has made significant achievements in the national economy and the people’s standard of living.</p>
<p style="text-align: justify;">
	Statistics show that the poverty in Nepal has decreased from 42 per cent in 1995 to 26 per cent in 2011. Similarly, 12 per cent of the GDP is contributed by remittance. The country’s half population comprises of youth, that is energetic and young. Youth is the group which is considered the most productive among all age groups. These youths not only contribute to the society and the economy but also act as the decider of consuming new and trendy products and services.&nbsp;</p>
<p style="text-align: justify;">
	It’s a pleasure for a company, to be a partner in a country like Nepal and work with the people here. So, Kansai Nerolac Paints Ltd (KNPL), a subsidiary of Kansai Paints Company Ltd, Japan, commenced its operations in Nepal under the brand name Kansai Paints Nepal Pvt Ltd. Owing to Nepal’s progressive economy, Kansai Nerolac Paints Ltd (KNPL) acquired 68 per cent stake in Nepal Shalimar last year. KNPL has decided to utilise the manufacturing set up of Nepal Shalimar to manufacture Nerolac range of products which are imported currently in Nepal itself.&nbsp;</p>
<p style="text-align: justify;">
	The enhanced economic capabilities of the Nepali people have opened up tremendous market opportunities not only for paints but also for any other FMCG. Similarly, the young population makes a market with prospects for deeper penetration, and demand for new age products and services. The Nepali market has come up with scope for higher consumption along with increased attraction towards health-friendly products such as low or zero VOC paints.</p>
<p style="text-align: justify;">
	KNPL feels proud to have a presence in Nepal. Kansai Paints Company Ltd, Japan, having presence in about 17 countries, believes in transferring the expertise and superior range of products to the consumers in Nepal. This entry promises to provide products that are not only best in performance, but also safe and have minimum environmental impacts. Kansai Paints is the market leader in Japan and the eighth largest paint company of the world. Similarly, Kansai Nerolac in India is the second largest paint company of India.</p>
<p style="text-align: justify;">
	As of now, Nerolac in India has achieved a noteworthy success in the market. Statistics show that out of every 10 passenger cars, six are painted with products from Nerolac. Similarly, seven out of 10 premium cars, seven out of 10 utility vehicles, eight out of 10 auto rickshaws, eight out of 10 tractors, seven out of 10 scooters and seven out of 10 motorcycles in India are made beautiful with Kansai Nerolac paints.</p>
<p style="text-align: justify;">
	The company manufactures a diverse range of products &nbsp;- from decorative coatings for homes, offices, hospitals and hotels to sophisticated industrial coatings. The company believes in the concept of healthy homes. Kansai Nerolac paints are top notch products that do not have adverse impacts on health. They have antifungal traits, contain zero VOC, and are lead free and odourless. The company’s low VOC range of paints conforms to the strictest of International standards and has the NTH certification which compiles to a Green Seal -11 approval. Green Seal is an independent international agency which certifies green and environment-friendly products.</p>
<p style="text-align: justify;">
	Nerolac Impressions 24 Carat is one such Premium Luxury Emulsion that ensures a smooth velvety finish with sheen, excellent flow and brushability, washability and is stain-resistant. Along with it, the company produces award winning products to cater to every segment in the market.</p>
<p style="text-align: justify;">
	In today’s’ challenging marketing space, it is beyond imagination to succeed in the market without using the new media and the latest technologies to reach out to the targeted consumers. Our exclusive outlets and showrooms offer the customers an easy opportunity to choose and select the paints and colours of their choice. Likewise, the company has focused on 360 degree marketing by using various media such as hoardings, TV, Radio, Vehicles, Movie Theatres and Print Media.&nbsp;</p>
<p style="text-align: justify;">
	With a belief in inclusive growth, the company has always kept the contributions that can be made to the society at the centre while working anywhere in the world. Any business or economic growth should fuel the betterment of the society and people.</p>
<p style="text-align: justify;">
	<span style="font-size:11px;">The writer is the Country Head of Kansai Paints Nepal Limited.</span></p>',
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			'id' => '875',
			'article_category_id' => '42',
			'title' => 'Politics Is Investors’ Focus',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Bikram Chitrakar</strong></p>
<p style="text-align: justify;">
	Secondary market slipped off the trend as political dealings and uncertainty cooled down investor’s sentiment. The benchmark Nepse index receded 19.73 points or 3.86% to settle at 510.88 while the session’s high was on 3rd Jan with 533.46 and lowest was on 20th Jan with 508.23.</p>
<p style="text-align: justify;">
	Growing political ambiguity and actions of opposition parties to hit the road with protest programmes against the government pulled the confidence level of the investors in the first month of 2013. The presence of Investors presence was discouraged by sequence of these events. Decrease in the turnover suggests the battered confidence of the investors.</p>
<p style="text-align: justify;">
	Market actions, as the second quarter reports of the listed companies started coming, indicated negative evaluation from the investors of these reports. This was particularly so of the banking and financial institutions.&nbsp;</p>
<p style="text-align: justify;">
	Securities Board of Nepal (SEBON) has issued directives to check the money laundering. This Anti-Money Laundering and Counter-terrorist Financial Directive 2069 provides that securities business person should inform the authorities if the daily transaction of an individual and firm exceeds Rs 1 million. Similarly, other capital market participants are also ordered to keep proper records so as to detect if the source of the investment is suspicious.&nbsp;</p>
<p style="text-align: justify;">
	Performance by Sector</p>
<p style="text-align: justify;">
	Commercial banking sector with dominant volume of trade in Nepal stock exchange descended 29.40 points or 5.98% to rest at 491.48. Hydropower sector skid 62.29 points or 6.33% to 983.9. Others sector lost 15.27 points along with 13.54% down in development bank to 763.65 and 245.94 respectively. Similarly, hydropower sector plunged 62.29 points or 6.33% to rest at 983.9 while finance sector went downhill 9.53% to 250.51. However hotels sector added 84.80 points or 12.51% to close at 677.8. Insurance sub-index gained 70.68 points or 8.67% to 815.24. Manufacturing sector moved higher by 9.04 points to rest at 860.13.</p>
<p style="text-align: justify;">
	Sensitive index that measures the performance of 133 blue chips scrip at secondary market cut off 1.80 points or 1.35% to 133.52 while the float index calculated on the basis of real transaction descended 1.30 points or 3.73% to 34.83. Total of Rs. 1,780,346,071 turnover was realized during the review period from 6,228,761 units of shares traded via 23354 transactions.</p>
<p style="text-align: justify;">
	The accompanying figure depicts the sector-wise distribution based on the total volume of trade. As usual, commercial banking sector accounted for 77.39% of total trade. Hydropower sector occupied 6.86% while development bank grabbed 5.87% and remaining sectors made up for the rest.</p>
<p style="text-align: justify;">
	Technically, the Simple Moving Average (SMA) showed shabby conditions in the short term as Nepse Index surged above the 30 Days SMA. However, in long term the 200 Days SMA seems helpless despite &nbsp;roaring movements. Key resistance test at the level of 510 can determine the further movement and new target level.&nbsp;</p>
<p style="text-align: justify;">
	<img alt="Stock Taking, Bikram Chitrakar" height="484" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/stocktaking_feb2013.jpg" style="font-size: 11px;" width="403" /><img alt="Stock Taking, Bikram Chitrakar" height="409" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/stocktaking_feb2013(2).jpg" style="font-size: 11px;" width="419" /><img alt="Stock Taking, Bikram Chitrakar" height="412" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/stocktaking_feb2013(3).jpg" style="font-size: 11px;" width="392" /></p>
<p style="text-align: justify;">
	<span style="font-size: 11px;">Chitrakar is a Stock Analyst with Jamb Technologies Pvt Ltd.</span></p>',
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			'description' => 'Growing political ambiguity and actions of opposition parties to hit the road with protest programmes against 
the government pulled the confidence level of the investors in the first month of 2013.',
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			'id' => '874',
			'article_category_id' => '40',
			'title' => 'Insuring Nepal’s Aviation Risks',
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			'content' => '<p>
	<strong>By Sushila Budhathoki</strong></p>
<p>
	<img alt="Cover Story February 2013" height="329" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_main_feb2013.jpg" width="550" /></p>
<p style="text-align: justify;">
	<span style="text-align: justify;">“The higher the risk, the higher the potential return,” goes a popular saying. The economic logic is however that the profit is higher when risks are minimized. And there comes the insurance business to help the other businesses to reduce risks. In the process, both insurance companies and their business clients become happy. But this does not seem to be the case in aviation portfolio of Nepali insurance companies. &nbsp;Although aviation insurance is a high profile business in Nepal, it happens to be one of the weakest portfolios for most insurance companies in terms of profit. The aviation insurance business looks good in terms of premium collection but there is hardly any profit.&nbsp;</span></p>
<p style="text-align: justify;">
	The reason is: the insurance companies providing aviation insurance have to pay a high amount of premium – more than 99 per cent at times - to the reinsurance companies abroad. In fact, the companies are sustaining their aviation insurance business from the commission they get for the premiums paid to the foreign reinsurers. Mahendra Shrestha, Managing Director of Himalayan General Insurance, says, “Whether it’s profit or loss, it goes to the reinsurance companies. We (local insurance companies) are just the intermediaries. And if we fail to reinsure, we cannot sustain the operation. So, we have to depend on reinsurance companies abroad. There is no other choice.”According to Shrestha, some insurance companies are paying up to 99.97 per cent of the premiums collected to the reinsurance companies. “It has been a non-profit business for even most of the reinsurers who have only two choices - walk away or keep doing business at high premium rates to recover previous losses,” he adds.&nbsp;</p>
<p style="text-align: justify;">
	A three-year data (From 2009/10- 2011/12) of Beema Samiti, too, depicts the pathetic condition of Nepali insurance companies in aviation portfolio. During this period, only a few companies could make some profits which however, is paltry (See table 1). Rameshwor Thapa, President of Airlines Operators Association of Nepal (AOAN), says, “Since this is a highly regulated and risky business, there can be loss or profit and the clients also contribute in both these factors.” There are altogether 25 insurance companies including 17 non-life insurance companies in Nepal. Among the non-life insurance companies, seven &nbsp;deal in aviation insurance (See table 2). Nepal insurance Company Ltd and Neco Insurance which were doing aviation insurance previously have pulled their hands from aviation portfolio now.</p>
<p style="text-align: justify;">
	Lack of domestic reinsurance companies and low retention capacity of Nepali insurance companies has resulted in huge amount going abroad as remittance premium. The Nepali airlines are paying around USD 8-9 million premiums to the insurers yearly. The Nepali insurance companies retain 0.5 per cent of this and send the rest to the reinsurance companies.&nbsp;</p>
<p style="text-align: justify;">
	Dip Prakash Panday, CEO of Shikhar Insurance, says, “The way our aviation business has been exposed, we cannot afford the risks. Who will bear the risk if some big loss occurs?” Panday asks, adding, “We are not sending money, we are transferring the risk. The &nbsp;companies are still in profit because the money is flowing in from the reinsurers abroad as commissions. Since they agreed to take the risk, they bear the loss as well, when it happens.” Shikhar Insurance, &nbsp;one of the major players of Nepal’s aviation insurance business earned Rs 10.5 million as reinsurance commissions last year.&nbsp;</p>
<div style="padding:10px; background:#f4f3e6;">
	<strong>Nepal’s First Aviation Insurance Summit&nbsp;</strong></div>
<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
	<img align="left" alt="Aviation Insurance Summit" height="173" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_main_feb2013(2).jpg" style="margin:0 10px 0 0;" width="300" />Held In January, an ‘Aviation Insurance Summit’ was held in Kathmandu where all the stakeholders including the reinsurance companies participated. The summit brought about a fresh wave of optimism in Nepal’s aviation insurance sector. Mahendra Shrestha, MD of Himalayan Insurance, who was also in the organizing committee says, “The Summit brought local stakeholders, including operators, regulatory bodies, insurance companies and banks as well as key players in the regional and global aviation insurance industry including underwriters and reinsurance brokers under one roof. It gave the Nepali stakeholders a global perspective on our current situation as well as access to the expertise of visiting delegates.” He further adds, “After the summit, all the delegates expressed that they found it to be a helpful introduction to the Nepal aviation insurance market and that it helped them take better decisions about supporting it.”</div>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	Airlines insure their fleet according to the value of the aircraft. The reinsurers charge different premiums depending on the type of aircraft, experience of the pilots and engineers, infrastructure, equipment, management facilities and age and the value of the aircraft. Aviation insurance coverage is categorized into the following types: Hull, War, Allied, Perils Insurance, Third Party Liability Insurance, In-flight insurance, Passenger liability insurance etc. The passengers are insured at USD 20,000 each and crew member at USD 40,000 each while the coverage of other categories like hull, war etc varies from airline to airline. According to the operators, the reinsurance market in Nepal was dependent on the India for a long time since it started in the early 1960s. In recent times however, as both the risk and the premium witnessed a constant upsurge, the market shifted to Europe. Indian Insurance companies like GIC, ICICI Lombard, United India and IFFCO-TOKIO were the main reinsurance partners of insurance companies previously, but the number of Indian reinsurers who do reinsurance business in Nepal has decreased over the past few years. &nbsp;</p>
<p style="text-align: justify;">
	<strong>High Premium</strong></p>
<p style="text-align: justify;">
	After the 9/11 terrorist attack in the US in 2001, where two planes - American Airlines Flight 11 and United Airlines Flight 175 - were crashed into the North and South Trade Towers, the aviation sector saw a sudden rise in premiums globally. After the incident, most of the reinsurers increased their premium rates worldwide while others loaded the premium according to the risk factors. Nepali airliners are charged up to 12 per cent premium now while airliners generally pay 4-6 per cent internationally. Previously, the premium rate for Nepal was up to 7 per cent. Thapa says, “We used to pay USD 30,000 as &nbsp;premium as early as six years ago. Now we have to pay USD 300,000 for the same aircraft – 10 times more than the premium rates in the past.” Currently, Tara Air and Agni Air are paying up to 12 per cent premium. However, Panday says that the premium rates differ from airline to airline. He says, “It is not that all airlines have to pay a high premium. The premiums of some airliners are as low as 1.5 per cent.”&nbsp;</p>
<p style="text-align: justify;">
	There are many conditions when the reinsurers charge high premium. They charge more if they discover that the airliners have had an air accident in the last five years or have a high frequency of making claims. Prem Bahadur Maharjan, Chaiman of Rastriya Beema Sansthan (RBS), says, “The risk factor is not within our control and that needs to be reinsured with other international insurance companies outside the country.” Decrease in the number of airlines due to the crashes and age of the aircraft lead to also high premiums. Prof Dr Fatta Bahadur KC, Chairman of Beema Samiti, says, “We had had the normal rates. But when one reinsurer increases the premium rate, others follow suit. Now the weakest airliners have to pay dearly while others too are paying high charges.”&nbsp;</p>
<p style="text-align: justify;">
	As Nepali aviation insurance is serviced by the international reinsurance market, rising premium rates is affecting the sustainability of the business. As the risk increases the market becomes limited and the airliners have no choice but to accept the high premium rates. Kewal Krishna Shrestha, CEO of Everest Insurance says, “The aviation business is running though the reinsurers are charging up to 12 per cent. But what if they charge 20-25 per cent? I don’t think the aviation industry in Nepal could bear such high premiums.” He says the environment in future could be such that even the high premium might not draw the reinsurers into confidence because of the high risk involved in the Nepali aviation and that the reinsurers could add more clauses which could affect the overall aviation business in Nepal.&nbsp;</p>
<p style="text-align: justify;">
	The reinsurers, however, insist that the premium is always determined by the risks anywhere in the world. According to Dr Pronab Sen, CEO of Nepal operation of National Insurance Company, the government-owned insurance company of India, the premium is based on the past losses. He says, “If you see the statistics, almost every year there is a crash and sometimes, there are 2 crashes in Nepal. And the rate of premium is governed by the reinsurance market. Because of the air accidents, some of the reinsurers were hesitant to do business in Nepal.” Sen adds, “We have our own retention limit. Depending on our financial strength, we retain a very small portion of the risk and reinsure the rest with other reinsurance companies. This is a worldwide practice in the insurance business. It depends on portfolio and risks. Sometime we retain 20 to 80 per cent- sometimes 90- depending on the risks.” Doug Horne, Marketing and Business Development Manager at Airclaims- A UK-based leading reinsurance company, shares a similar experience. He says, “The present level of risk is too high but there are enough insurers willing to support the market, albeit currently at a higher cost than in some other places.”&nbsp;</p>
<div>
	<img alt="Aviation Insurance Business" height="298" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_main_feb2013(3).jpg" width="550" /></div>
<div>
	<div>
		<strong>The Risky Rural</strong></div>
	<div>
		 </div>
	<div style="text-align: justify;">
		The airlines which fly mostly in the hilly region are among the high premium paying ones. On the trunk routes, the premium is only around 3-4 per cent and in the case of STOL (Short Take Off and Landing) runways, the premium rate varies from a minimum 3 to a maximum 12 per cent. Due to the risk in rural areas, the reinsurers load more premiums on them. According to the operators, the aviation insurance started becoming a loss-making business for reinsurers since 2009. There have been eight aviation crashes, killing 114 people in the past six years. Almost all these accidents took place in the hilly region. Of them, six deadly accidents occurred in 2011 and 2012 alone, excluding four helicopter crashes of which a couple were fatal. Being a mountainous country, the weather, terrain and the high altitude in the hilly region are the major challenges for the aviation sector. Poorly managed and small airfields, unpaved runways and lack of manpower to co-ordinate pilots in these areas are considered the reasons behind the air crashes. An aviation expert, requesting anonymity, says, “We need pilots who are well trained and have a sound understanding of weather pattern, especially clouds.”&nbsp;</div>
	<div style="text-align: justify;">
		The emergence of private airliners in domestic air transport started in 1992 when Nepal adopted a liberal aviation policy. And in 2002, expansion of the International Terminal Building at Tribhuwan International Airport (TIA) and the construction of a new Air Cargo Complex made it convenient for the international airliners to operate in Nepal. This increased the flow of international tourists in Nepal. Increased tourist arrivals, in turn, have led to a growth in the aviation business and aviation insurance business too. This is why the aviation insurance business has grown over &nbsp;the past decade. There are 10 fixed-wing airplane operators and five helicopter operators in Nepal at present. The Civil Aviation Report 2011-2012 also depicts a steady growth in the aviation sector with increasing flight movement.&nbsp;</div>
	<div style="text-align: justify;">
		There are altogether 54 airports in Nepal. Among them, 34 are operational at present. Among the running airports, eight are on the trunk routes- while the rest are in the remote areas. Thapa says, “Trunk route operators have fewer problems in comparison to the STOL route operators mainly because of the high hills and high altitude. There have been many instances of chopper accidents on the STOL routes.” Airports in Pokhara, Biratnagar, Janakpur, Nepalgunj, Bhairahawa, Kathamandu, Dhangadi and Chandragadhi are on the trunk route. The domestic aircraft which fly in trunk route have a minimum seat capacity of 15 and a maximum of 72 while the planes in STOL routes have minimum seat capacity of 9. &nbsp;Big aircraft fly on the trunk routes while the small ones &nbsp;are considered best for the hilly region. Suresh Acharya, Joint Secretary at Ministry of Tourism and Civil Aviation (MOTCA) says, “There is a high risk on the STOL route especially for twin-otters. There is an urgency to enhance the capacity of the pilots who fly on the STOL routes. ”</div>
</div>
<div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>The aviation insurance cover</strong></div>
	<ul>
		<li style="text-align: justify;">
			Hull All Risk (Loss or Damage to the Aircraft)</li>
		<li style="text-align: justify;">
			Hull War</li>
		<li style="text-align: justify;">
			Passenger and Cargo Legal Liability</li>
		<li style="text-align: justify;">
			Crew Personal Accident</li>
		<li style="text-align: justify;">
			Pilots Loss of License</li>
		<li style="text-align: justify;">
			Third Party Liability</li>
	</ul>
	<div>
		<div style="text-align: justify;">
			<strong>Bad Image</strong></div>
		<div style="text-align: justify;">
			 </div>
		<div style="text-align: justify;">
			The frequency of accidents has created fear in the reinsurers’ minds, pushing Nepal into a ‘risk zone’. These accidents could have negative impact on the country’s tourism if the casualties included many foreigners. Nepali aviation sector had gone through similar hard times in the past too. Ten years ago when Maoist combatants set ablaze Fishtail Air’s helicopter in western Nepal, domestic airliners got notification from the reinsurance companies abroad that they won’t compensate the losses in case of any terrorist attack. &nbsp;Panday says, “Fear is a very dangerous thing. Our terrains are difficult, which has sent a wrong perception. Similarly, loss is also a perception and can be changed. All we need is 3 to 4 years of good loss ratio.”</div>
		<div style="text-align: justify;">
			The domestic airlines are often accused of poor maintenance of their airplanes and the pilots of not following the standard operation procedures. Similarly, it is said that there is often a lack of co-ordination between the&nbsp;captain and co-pilots. Acharya says, “According to our findings, human factor is responsible for 80- 85 per cent accidents. The remaining 15 per cent accidents are caused by failure of machine, bad weather etc. It seems that the pilots are not very efficient at taking the right decision in time of emergency or they do not make the maximum use of the cock-pit. Lack of co-ordination between pilots and co-pilots and no guidance from the ground people when the plane is flying is common.”</div>
	</div>
</div>
<div style="text-align: justify;">
	<img alt="Income and Expences" height="216" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_main_feb2013(4).jpg" width="579" /></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<div style="">
		Lack of consultation between the government and insurance authorities for resolving the key issues of the aviation sector has made the aviation business worse. Acharya says, “The government is unaware about the kind of image the reinsurance companies are making of Nepal. They should have believed the government’s aviation report.” He further adds, “We need to develop that kind of mechanism. We are ready to help whenever they need any support from the government. All we need to do is build that kind of mechanism where the government as well as the insurance companies could sort out the problems together.”&nbsp;</div>
	<div style="">
		The use of ‘old’ aircraft by some domestic airlines has only added to create a negative image of the Nepali aviation, though people in the industry and experts do not call it a problem. According to a Nepali scholar who has a Master’s degree in Aeronautical Engineering from Poland, not following the standard operation procedures by the aviation operators is the major drawback in Nepal’s aviation. He says, “It does not matter whether the plane is old or new; what matters is its scheduled as well as need-based maintenance.” Lack of distance measuring equipment (DME) at airports is another shortcoming for the country’s aviation sector. He adds, “Towers are more helpful in tracking the aircraft in the right way. However, most of our airports rely on windsocks &nbsp;to indicate wind direction and the relative wind speed. This is risky. Sometimes, there is no one in &nbsp;the towers at the airports to coordinate with the flying pilots.”&nbsp;</div>
	<div style="">
		An aircraft is generally considered safe until the deadline given by its manufacturer. There is a manual for every air plane and manual for flying hours including number of flights a day. The Beema Samiti issues, renews, dismisses the licenses of insurance companies, insurance surveyors and insurance agents. It has also been “working for the development, management and regulation of the insurance business in the country.” The BS 2067 Report of Beema Samiti has also recognized scarcity of skilled manpower, unhealthy competition among insurance companies and lack of reinsurance companies within the country as the major problems of the aviation insurance business. However, the Beema Samiti has not been able to address these problems properly. Maharjan says, “There has to be a strict monitoring mechanism for air traffic discipline and safety education to the people involved in the aviation business. Pilots should also be alerted against taking any sort of risks. Aviation safety is not related to money only; it’s about lives of people.”</div>
	<div>
		 </div>
</div>
<div style="padding:10px; background:#f4f3e6;">
	<strong>Utilizing Civil Aviation Academy&nbsp;</strong></div>
<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
	If given due importance, the Civil Aviation Academy (CAA), the only training center for aviation related training in Nepal, could be beneficial to the whole aviation industry. CAA conducts basic, refresher, induction and recurrent trainings related to Air Traffic Control, Aviation Security, Fire fighting and rescue, CNS and others based on quality curriculum. Though it is the only state’s approved aviation training organization (ATO) in Nepal, the private sectors have failed to utilize them properly. Mahendra S. Rawal, Chief of CAA says, “Though we are also in the developing phase, we can still work together to develop expertise. Together we can either develop the infrastructure here or bring expertise from outside the country.” The CAA runs courses on Air Traffic Services (ATS), Engineering, Aviation Security, Aerodrome rescue and fire fighting among other five dozen courses ranging from knowledge based to competency based training.</div>
<p>
	 </p>
<p>
	<strong>The Way Forward</strong></p>
<p style="text-align: justify;">
	Mergers among insurance companies to increase capital base is regarded as one of the possibilities for enabling the insurance companies financially. The insurance companies are also trying to increase their retention capacity from 0.5 to 1 per cent which has spread positive message to their clients. There have been many progresses in Nepal’s aviation sector. From the month of Kartik, this year; Tourism Ministry has revised the provision of compulsory payment of 60 million dollar in third party liability to airliners during the registration time. CAAN has subsidized up to 8 million dollar to the airlines that fly to rural areas. An agreement was signed between the Government and CAAN for Capacity Enhancement Project of TIA under ADB loan in 2010. A safety audit was carried out in Nepal from 5 to 14 May 2009 according to the Universal Safety Oversight Audit Program (USOAP) as provisioned by ICAO and the Corrective Action Plan based on the flight safety. The findings of the audit have already been submitted to ICAO. Furthermore, a provision has been made to perform all activities in congruence with the concept of ICAO USOAP Audit Continuous Monitoring Approach (CMA).&nbsp;</p>
<p style="text-align: justify;">
	Tri Ratna Manandhar, Director General, CAAN says,” We have followed international standards in safety measures and the maintenance of aircraft is carried out as per the European standards- EASA Part-145. Buddha and Yeti airlines have already started it and others are in the process.” According to him an ICAO team is visiting Nepal in July 2013 for audit. He says, “After this ICAO audit, we will be able to prove that we have made progress in aviation management including the safety.” CAAN has been conducting strict safety programmes for safety and maintenance for the past six months. Likewise, the board of CAAN approved Air Operator’s Requirement (AOCR) in November 2012 which clearly mentions the requirements to get Air Operator Certificate. It has also managed the maintenance of aircrafts by AMT (Aircraft maintenance technician) from UK from this year. It is also planning to build an isolated parking for the planes having bomb threats and hijacking etc next year.&nbsp;</p>
<p style="text-align: justify;">
	No compromise &nbsp;at all with safety could be the best way to lower the high premium in Nepal’s aviation insurance, say the experts. The airline operators, too, are more aware about maintaining the safety standards today than in the past. AOAN has been organizing many seminars on aviation and programmes to help lower the premium by assuring safety. Thapa says, “There have been programmes organized aimed at enhancing the safety measures and we are very much confident that we would be able to enhance the safety measures.” He adds that airline operators are optimistic about reducing the risks. “A plane using only the Visual Flight Regulation (VFR) should not be allowed to go through the clouds. Pilots too should stop flying in pressure. If we follow all the safety measures definitely the risks have to go down. Civil Aviation Authority of Nepal (CAAN) should monitor these flights and instruct the airlines accordingly,” He says.&nbsp;</p>
<p style="text-align: justify;">
	Experts also feel the need of &nbsp;terrain awareness and warning systems (TAWS) developed by manufacturers and safety regulators to prevent accidents from Controlled Flight into Terrain (CFIT). CFIT is among the leading causes of airplane accidents involving the loss of life worldwide. The Wikipedia describes it as an accident in which an airworthy (fit to fly) aircraft, under pilot control, is unintentionally flown into the ground, a mountain, water, or an obstacle. With improvements in infrastructure, training and operations, reinsurers are also optimistic in reducing the cost of insurance to a reasonable level. Horne from Airclams says, “The prospects for aviation insurance business in Nepal are bright. There is a capable and knowledgeable local market which has good relationships with the global insurance community.” He adds, “What is perceived as the current high cost of insurance can and should be reduced for operators who demonstrate a good safety culture and record, adopt a Safety Management Programme that is working well and can prove that it is making a difference.”</p>
<p style="text-align: justify;">
	While the formation of a pool of all the insurance companies to collectively handle the claims in aviation insurance is in the initial phase, the government is planning to convert the insurance pool into a reinsurance company under Beema Samiti. &nbsp;Ramesh Lamsal, Executive Director of Insurance Pool says, “We have not prepared the business plan about aviation insurance yet. But if the aviation segment is included it will support the aviation business in Nepal.” Government authorities say that if the main players in the aviation business in Nepal- the airliners and insurance companies prepare appropriate strategy for the safety measures they are ready to co-operate insurance companies and protect them from those risks. Dr. KC says, “There should be positive attitude towards the formation of possible reinsurance company in Nepal after calculating the advantages and disadvantages on the business. The foremost thing is that it should be for the stability of the aviation business.”</p>',
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			'title' => 'Investment Is Not A Big Thing These Days',
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			'content' => '<p style="text-align: justify;">
	<img align="left" alt="Binod Chaudhary" height="288" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_binod_feb2013.jpg" style="margin: 0 10px 10px 0;" width="350" />Binod Chaudhary is the President of Chaudhary Group (CG), one of the leading business houses of Nepal. He is also the Chairman Emeritus of Confederation of Nepalese Industries (CNI). A prominent industrialist, Chaudhary has recently published an autobiography, ‘Atmakatha’. This book tells the successful story of how Wai Wai noodles, initially imported from Thailand, which later took such a big market share. “Currently, 1 billion packets of Wai Wai noodles are produced annually which accounts for 1% of the total noodle production of the world”, claims Chaudhary. In an interview with New Business Age, Chaudhary talks about the CG’s successful ventures and the group’s plans among other issues.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Excerpts:</strong></p>
<p>
	<strong style="text-align: justify;">You seem to be saying and doing whatever the Industrialist Dhirubhai Ambani of India used to say and do. Are you influenced by him?</strong></p>
<p style="text-align: justify;">
	I always say that I am influenced by two people in India - J.R.D. Tata and Dhirubhai Ambani. The status given to the Tata Group by J.R.D. Tata is unmatched by any other business house in the world. But the industrial revolution in India was brought by Dhirubhai Ambani. Hence, I am his big fan.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You happen to praise the former leader of South Korea, Park Chung-Hee as well. Do you believe that the government should praise the industrialists?</strong></p>
<p style="text-align: justify;">
	Park Chung-Hee has given birth to many multi-national companies during his regime. That is why the multinational companies of South Korea are successful globally. I am a 100% supporter of that. I truly believe that in a country like Nepal, private companies cannot develop without support from the government. In countries like Japan and Korea, the government has pushed the private companies to grow. I believe that the same should apply in our case as well.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Why did you change the decade long established Chaudhary Group into CG?</strong></p>
<p style="text-align: justify;">
	This is just a branding. The word CG is easy to remember for people but Chaudhary Group is not. You have to twist your tongue a little bit. Actually, the brand “Chaudhary’s” could not be well established. There used to be a logo of Chaudhary’s in our every product. But, that could never be the talk of the town. Today, no one says Chaudhary’s. Everyone likes to say CG.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You have set up several Noodle producing plants throughout India. Similarly, you have invested in luxury resorts in cooperation with Taj Hotel. How much have you invested like this within Nepal and abroad?</strong></p>
<p style="text-align: justify;">
	We also do not have an exact account of that. We have many companies that are being run by different individuals. Again the criterion to judge a company has become different these days. Today, a company is judged on basis of its brand, marketability etc. According to that, the co-investors invest. Today, the Tata family owns only 3% of the Tata Group. But, they are buying several companies of millions of dollars in the name of Tata industries and are trading worldwide. That’s why investment is not a big thing these days. I constantly repeat that a multinational company cannot be setup by just collecting money from Nepal. There is not enough capital to do that. Furthermore, there is a possibility of development within and without. If you have the capability of industrialization, capital will follow you. Today, we are producing Wai Wai in more than 3 countries. In those countries, there are several investors who are interested to invest in Wai Wai. We are working in hotels in different nations, in our own brand and in others’ brands. We have an option of choosing whom to mingle with. We have already earned that trust of the investors in the international market. That is why investment value and volume by an individual company or industrialist is not the key factor here.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The main question is when we can say with certainty that Binod Chaudhary is an internationally recognized billionaire.</strong></p>
<p style="text-align: justify;">
	Binod Chaudhary is only a face. If someday CG group comes to be recognized as Nepal’s billionaire company, it is not only my pride but yours too. And I pray that the day comes soon.&nbsp;</p>
<p style="text-align: justify;">
	<strong>For some time past, you have been concentrating more on imports, rather than on two or four flagship industries like Wai Wai.&nbsp;</strong></p>
<p style="text-align: justify;">
	During the last twenty years, the nation has faced insurgency. Today also it exists in some form or the other. The only company that developed both horizontally and vertically during this period is CG. If CG owned only 3 companies back then, today it owns 14. If 500 people worked back then, today 3000 people do. &nbsp;If CG vertically owned 6 business houses back then, today the number is 10. The cement company has also been added to them. In fact, we are building the nation’s largest cement company. We are also trying to set up hydro power plants with over 240 MW capacity each. We have entered the ayurveda sector. &nbsp;In terms of education, we have established 5 institutions where over 4000 students are studying. We are going to invest Rs. 1 billion in education. Then an additional 10000 students will have the opportunity to study annually. Service industry is also being looked at closely by us. If you look at this sector by turning the pages of Aarthik Abhiyan National Daily, you can find the answer to your question over there itself.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You have recently left the chairmanship of CNI. Why was CNI unable to do anything much impactful during those years of your leadership?</strong></p>
<p style="text-align: justify;">
	I am doing well in CNI. Recently, a new leadership has arrived. We are also visiting districts. However, we are not in favour of opening branches in all the 75 districts. CNI mainly represents the industrial sector of the nation. Where there are no industries, it is not necessary to open the branches but we are frequently visiting the districts where there are industries.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Some time ago, you said that Nepal Airlines Corporation should be operated under PPP. Are you interested in investing in the corporation as well?</strong></p>
<p style="text-align: justify;">
	I have lost that interest now. I do not know if any private investor can show a positive route to Nepal Airlines Corporation. It is difficult to bring a change in such a corrupt system.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Nepalis cannot legally invest in the foreign markets. That would be great if possible. You got involved in a political party and also reached the constituent assembly. But, you could not do anything substantial in this regard.</strong></p>
<p style="text-align: justify;">
	Everybody agrees in this issue. Nepal Rastra Bank has been introducing several fiscal policies for that from time to time. But no proposal has yet been passed in the assembly. That is why it is not a law yet. Nepalis have opened restaurants and hotels in US and Japan. The important thing is that Nepalis are investing. When Nepalis could not invest and only the non residents could, Binod Chaudhary had to make Barun and Rahul Chaudhary, NRNs. Everyone should appreciate it. Please do not consider it illegal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You are such a successful industrialist. But, CG has not been able to make returns to the society accordingly. Except for some minor contributions, no significant contributions in CSR (Corporate Social Responsibility) can be seen. Why?</strong></p>
<p style="text-align: justify;">
	We believe that we have a major involvement in the social sector. Our brand line is ‘Touching life everyday’, which means we do touch lives every day. CSR also has different ways. Donation is also one of them. The other is to help the society during desperate times. You can consider Norvic hospital and educational institutes for this case. Without these initiatives people would have been deprived of quality education and health. It’s a part of CG to cooperate with the society. Some receive concessions and some receive scholarships. You take from those who can give and you give to those who can’t.&nbsp;</p>
<p style="text-align: justify;">
	Recently, we have agreed to set up a social business fund in cooperation with Noble prize winner Muhammad Yunus’s Muhammad Yunus Center. That will help the Nepalis who want to set up a business but do not have enough resources to do exactly that. We are always committed to shake hands with the society and move forward.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What are your suggestions to the Nepalis who want to start up new businesses in Nepal?</strong></p>
<p style="text-align: justify;">
	New businesses will have to face a lot of difficulties. I strongly suggest not losing hope. It always takes time to see the results. And, I am very hopeful for everyone.&nbsp;</p>',
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			'id' => '876',
			'article_category_id' => '41',
			'title' => 'Oil And Gas In Nepal: Foreign Investors’ Dilemma',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Abhimanyu Chhetri</strong></p>
<p>
	<img alt="Oil and Gas, Sectoral February 2013" height="386" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_feb2013.jpg" width="570" /></p>
<p style="text-align: justify;">
	<span style="text-align: justify;">In the time it takes most people to read this sentence, the world will have used up about 8,000 barrels of oil (1 million liters); at 1000 barrels per second. The price of oil and gas is ever rising. International Oil companies are making huge investments around the world in search of new reservoirs. It might be surprising for some to know that Nepal has reserves of both oil and gas and foreign companies are eyeing those reserves. As of July 2012, the 10 blocks designated by the Department of Mines and Geology(DMG) for oil and gas exploration have been leased out to 4 different Oil giants. &nbsp;&nbsp;</span></p>
<p style="text-align: justify;">
	In the summer of 2012, there was a huge outcry about two international oil giants – Texana Resources Company of Houston, USA and Cairn Energy of UK leaving Nepal citing a “force majeure”. Force Majeure can free both parties from liability or obligation in case of an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or an event described by the legal term act of God (such as hurricane, flooding, earthquake, volcanic eruption, etc.). However, this allows the parties to only suspend their work but not cancel the contract.&nbsp;</p>
<p style="text-align: justify;">
	In most countries oil companies are being forced out. However, in Nepal the two companies packed up and left. The two companies said they were abandoning exploration work in Nepal due to bureaucratic hurdles and lack of cooperation from the government. Both have already spent millions of dollars in Nepal on preliminary surveys and were all set for a ‘seismic operation,’ which determines whether the surveyed areas contain commercially viable quantities of oil. To date, Texana has spent US$3 million and Cairn US$2 - 10 million in the country. &nbsp;The two companies were required to pay an annual fee of US$ 50,000 per ‘block’ to the Nepal government. They also have to provide bank guarantees before starting the geological survey works.</p>
<p style="text-align: justify;">
	Rajendra Prasad Khanal, Head of the Petroleum Exploration Promotion Project (PEPP) under DMG, says that these companies entered Nepal during Maoist Insurgency. Texana won the bid in 1998 for 2 blocks and Cairn Energy got the license for 5 out of remaining 8 blocks in 2004. He says, “It is understandable that the companies could not work before due to the insurgency going on during those years, but now the situation has changed. Nepal is a peaceful developing country and there is no obstacle for them to carry out their investigations.”</p>
<p style="text-align: justify;">
	In fact, the team at PEPP is repeatedly requesting them to complete their work in time as per the agreement. Texana has 13 months left and Cairn energy has 7 months left of their contract period. Mr. Khanal and his team are creating a momentum to complete the necessary pre investigations and hopefully extract the crude oil in near future. &nbsp;</p>
<div style="padding:10px; background:#f4f3e6;margin-bottom:10px;">
	<div style="padding:10px; background:#f4f3e6;">
		<strong>Sharing the country’s prospective product with the foreign companies&nbsp;</strong></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		The Petroleum Regulation 2041 (1985) has made a provision of “Model Petroleum Agreement” which includes all the items to be covered in the petroleum operations. This model agreement is in the form of Production Sharing Contract with provision of Royalty and Income Tax. This is also influenced by the amount of crude reserves that can be extracted. The companies will have to pay a royalty of 12.5% to the Government of Nepal and a 30% income tax after sales of the optimal amount of extraction. An obligation to drill a well is not mandatory in the initial exploration period of 4 years.</div>
</div>
<p style="text-align: justify;">
	Recently, Nepal has accorded high priority to encourage foreign investment in the country. With economic liberalization policy of the government and attractive fiscal terms available, Nepal is committed for full cooperation to international companies in facilitating petroleum exploration in Nepal.</p>
<p style="text-align: justify;">
	The DOMG and PEPP have divided the Tarai and the Siwalik hills into 10 ‘exploration blocks’ of 5,000 sq km each and is trying to sell the exploration license to the International oil exploration companies . Texana won the bid for Blocks 3 (Banke) and 5 (Chitwan) and entered into an agreement with the government in December 1998. In 2004, the British company Cairn Energy received a license to explore five other blocks—Block 1 (Dhangadhi), Block 2 (Karnali), Block 4 (Lumbini), Block 6 (Birgunj) and Block 7 (Malangawa).&nbsp;</p>
<p style="text-align: justify;">
	&nbsp;As of July 2012, when the two companies left the country citing “Force Majeure”, the DMG put the remaining blocks up for bid. Currently, the Block 8(Janakpur), Block 9(Rajbiraj) is owned by Emirates Associated Business Group (EABG) of UAE and the Block 10(Biratnagar) is owned by BBB Champions, which is another Houston based Oil Company. Both have bought a 4 year license to carry out exploration activities in these areas.&nbsp;</p>
<p style="text-align: justify;">
	Mr. Khanal thinks that this is only the first step and a considerable amount of work is still to be done. The team of geologists at the DMG and PEPP are constantly providing the geological data to the foreign companies that can be indicators to the presence of oil in the region. Along with this, oil and gas have been found in India, Pakistan and Bangladesh in similar geological setting as that of the exploration blocks in Nepal. This has also further encouraged Mr. Khanal’s team to find the hidden reserves. According to Khanal, more companies are showing interest to bid for the license. The PEPP and DMG are involved in collecting more geological data as to attract more companies and facilitate the process of oil extraction for commercial use.</p>
<div style="text-align: justify;">
	<img align="right" alt="Oil and Gas in Nepal, Sectoral February 2013" height="402" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_feb2013(2).jpg" style="margin:0 0 0 10px;" width="300" />
	<div style="">
		There is an urgency to extract these non renewable resources. Geologically, oil is formed when the dead burials mature under high temperature and pressure. After a certain period, the oil moves from the oil window to the gas window. This indicates that the reserves underground have matured for extraction a long time ago and the reserves might be lost if not extracted in time. A number of oil and natural gas seeps have been recoded in a stretch of 14km in Padukasthan, Sirsethan and Navisthan area in Dailekh and only gas seeps in Muktinath in Mustang. Methane gas deposit in Kathmandu Valley is known since long time. Feasibility study has confirmed that this gas can be used for industrial and household purpose and the reserve is sufficient to supply gas to 21,000 families for about 30 years. During preliminary study, 23 geothermal hot springs have been identified nationwide. Most of them are found to be associated with Main Central Thrust (MCT) and confined to the river banks. The temperature of the hot spring water ranges from 40o to 115oC. It can be utilized for heating, drying fruits, hot water bath to heal skin disease. According to Krishna Prasad Kafle, a Geologist retired from DMG, considerable amount of investments should be made in exploring these resources.&nbsp;</div>
	<div style="">
		 </div>
	<div style="">
		The only exploration of theses precious natural resources is done in Kathmandu Valley, where Peat and Lignite is mined and used mainly in firing brick kilns. Only one well, the Shell er al Biratnagar 1, with a total depth of 3,520 m has been drilled in Nepal. In 1986, Shell and Triton bought Block no. 10 in Eastern Nepal for exploration but abandoned its project soon when it didn’t strike any oil. People associated with the project argue that Shell just didn’t drill deep enough. The situation was such that the drilling machines had to be imported from India and, due to certain trade restrictions, daily operation charges went as high as Rs 35,000 per day in the then price situation. Today, the daily operation cost is in the range of thousands of dollars. But, if considerable amount of oil is found in Nepal, it will be a boon for the Nepalese economy.</div>
	<div style="">
		 </div>
	<div style="">
		 </div>
</div>
<div style="padding:10px; background:#f4f3e6;">
	<strong>A case of Norway&nbsp;</strong></div>
<div style="padding:0 10px; background:#f4f3e6;">
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		Before 1960, though an independent country Norway was constantly exploited by the rich and powerful UK and Denmark. During World War I, Norway was a neutral country. In reality, however, Norway had been pressured by the United Kingdom to hand over increasingly large parts of its massive merchant fleet to the UK at low rates, as well as to join the trade blockade against Germany. At the end of the 1950s, very few people believed that the Norwegian continental shelf concealed a wealth of oil and gas. Then, Ekofisk was discovered in 1969 and the Norwegian oil adventure started in earnest. Production from the field started on 15 June 1971 and during the following years, several large discoveries were made. In the 1970s, the exploration activity was concentrated in the North Sea, but the shelf was also gradually opened northwards. This led to world-class discoveries and the production from the Norwegian continental shelf has been dominated by these large fields that were given names such as Ekofisk, Statfjord, Oseberg, Gullfaks and Troll. These fields have been and still are very important for the economic development of Norway. In the last 40 years, Norway has developed an oil and gas industry and this in-turn has resulted in unique national economic growth and welfare improvements. Today, Norway ranks as the second wealthiest country in the world in monetary value, with the largest capital reserve per capita of any nation. The standard of living in Norway is among the highest in the world. It used up its oil and gas reserves to gain this status.</div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		<img align="left" alt="" height="207" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_norway_feb2013(3)(1).jpg" style="margin:0 10px 0 0;" width="300" /></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		Petroleum exploration activities carried out on the continental shelves of Norway.</div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		<span style="font-size:11px;"><br />
		</span></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: right;">
		<span style="font-size: 11px;"><br />
		</span></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: right;">
		<span style="font-size: 11px;"><br />
		</span></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: right;">
		<span style="font-size: 11px;"><br />
		</span></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230);">
		<span style="font-size: 11px;">Source: upstreamonline.com</span></div>
</div>
<p>
	 </p>',
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			'title' => 'A Quest For Bliss',
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			'content' => '<p style="text-align: justify;">
	<img align="right" alt="Trishakti Joshi" height="338" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/personality_trisakti_feb2013.jpg" style="margin: 0px 0px 0px 10px;" width="318" /><strong>By Gaurav Aryal</strong></p>
<p style="text-align: justify;">
	Trishakti Joshi, CEO of Elite Networks was raised at a time when sons in the family were pressed to be either a doctor or an engineer. Being a part of the family with a daughter and two sons, Joshi was set to be a doctor as his elder brother had chosen the path to engineering. But the life of his had something else in its details.</p>
<p style="text-align: justify;">
	He was convinced and determined to be a doctor in his schooldays. So, he also took up Biology as one of the optional subjects in school. But as soon as he came out of his school passing his School Leaving Certificate (SLC), he watched lives of doctors from close. Then the fire in him that wanted to be a medical doctor extinguished. Joshi explains, “I was always a kind of person who wants and tries to do something new. I did not find that profession interesting. New experiments and trying out new things were missing out there. Though there is scope for research and development, it is not simply possible in the initial phase.”</p>
<p style="text-align: justify;">
	<strong>The Chosen Dream</strong></p>
<p style="text-align: justify;">
	Deciding to quit the doctoral profession he thought of shifting to architectural engineering. But unfortunately, only Intermediate in Engineering was taught in Nepal. So, one had to go abroad to complete the further studies. So, he joined ISC in Patan Campus but entering the Physics faculty was not so easy for a boy who came through a biology background. &nbsp;He managed through it and joined BSc in Trichandra College. Though he was keen to go to the US for further studies, he recalls his father, who had lived in the US for a long time, did not want Joshi to go there for his undergraduate studies.</p>
<p style="text-align: justify;">
	In the meantime the wave of new technology and especially the computers had struck Nepal. Along with his studies, he also joined MIPS at Bagbazar and learned the ABCD of computers there. The curiosity for the technology and a strong background in Science made him land as a job holder in the Mercantile Office Systems. There he used to repair computers. He worked for five years for Mercantile. Having worked for a long time with machines, he then craved working with people.</p>
<p style="text-align: justify;">
	With a dream to do something new and more satisfying he came up with an idea to offer computer networking services to offices. It was already an old thing in the international market but it was pretty new for Nepal. Then he established Elite Networks, partnering with a friend, the company which he is currently looking after.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Making Leaps</strong></p>
<p style="text-align: justify;">
	Joshi cashed in on the relationship he made in his previous job to find his clients. So, the networking responsibilities of the then Grindlays Bank or today’s Standard Chartered Bank were taken up by his company in its initial days. Joshi accredits the bank for the success of his company. As of now the entire IT of the bank is managed by Elite Networks. His company worked for the American Library, looked after IT aspects of Hillary Clinton’s Nepal visit and also sold computers.</p>
<p style="text-align: justify;">
	In the due course, his company also work abroad too. Joshi’s company took up all the responsibilities of setting up networking for UNDP’s Bhutan Office. As of now, he has been introducing and maintaining the new initiatives his company makes. Around 1996 he also initiated the project to network two offices. And Joshi claims that his company was the first in Nepal to introduce wireless networking.&nbsp;</p>
<p style="text-align: justify;">
	Joshi’s venture that began with networking business also tried out sms banking, and now concentrates more on providing complete IT solutions to its clients. It not only provides tools and technology but also provides the entire services related with it. Since 2009, he started selling Automated Teller Machine (ATM) and all the services associated with it such as installation and maintenance among others. Joshi claims that his company has over 50 per cent market share in the ATM sales and caters to around 65 banks and financial institutions. His company also installs and manages ATM lounges. Once, Joshi also provided consulting services for his clients about the IT. Apart from these, his company in partnership has established and operated a data centre at Thapathali targeting financial institutions and corporate houses.</p>
<p style="text-align: justify;">
	Elite Networks that began with two people, has now reached to a team of 60. Moving away from selling hardware, he plans to concentrate more on the complete solution packages and also venture into software development. Joshi sees a huge market prospects not only in Nepal but also globally in apps development for smart-phones and tablet computing.&nbsp;</p>
<p style="text-align: justify;">
	Had he not been in the current business, Joshi thinks he would have become either doctor or taking some job somewhere in the field of IT.&nbsp;</p>
<div style="padding:10px; background:#f4f3e6; margin-bottom:5px;">
	<p>
		<strong><span style="color: rgb(255, 0, 0); font-size: 16px;">Personal Side</span></strong></p>
	<ul>
		<li>
			Likes attending social events and professional gatherings</li>
		<li>
			Enjoys drinking without letting alcohol taking him over</li>
		<li>
			Loves cooking on weekends</li>
		<li>
			Loves using gadgets more for his works than for entertainment</li>
		<li>
			Prefers quality over brand names but gives value to brand values</li>
		<li>
			Likes photography</li>
		<li>
			Loves playing golf</li>
		<li>
			Socially active as a member of Toastmasters Club, Executive Member of CAN and Executive Member of Nepal Golf Association</li>
	</ul>
</div>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	Joshi says, “For me trying and doing new things is like an addiction. I visit abroad to understand and find out emerging technologies and identify new technologies that can be useful in Nepal.” Joshi localises those technologies to best suit the need of the Nepali market before introducing to Nepal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Working style</strong></p>
<p style="text-align: justify;">
	While making any decisions, Joshi goes after his instincts, local market knowledge and trend in the international market. Similarly, he says that he readies himself before the market readies itself while introducing any new products and services. Joshi is already ready on his part before the clearing houses are ready to be operational in Nepali market- his new target place to offer services and solutions. Joshi recalls such times when he has been ahead of time and market, and instances where he had to drop the entire idea. He exemplifies such a situation in sms banking, where other companies in the market are doing well currently.</p>
<p style="text-align: justify;">
	Every day, Joshi gets up at around 5:30 in the morning. Then, he goes to the club for exercises and fitness for one and a half hour. At around 8:30, he leaves for office and reaches there within half an hour. As he has to keep in touch with companies in Singapore, he utilises the time before his employees arrive for corresponding with those companies. “When my team arrives at office by 9:30, I am ready for them and by 10, when banks open, I am ready for clients too,” he describes. He usually ends the day at 6 pm.</p>
<p style="text-align: justify;">
	<strong>Management approach</strong></p>
<p style="text-align: justify;">
	Joshi looks after the management of his company Elite Networks while his partner Pramod Kunwar looks after all the technical aspects. He reveals that the entire accounting services have been outsourced to another company since day one.</p>
<p style="text-align: justify;">
	Joshi believes, “As easy it is to establish a company, it is equally difficult to sustain it. It may look effortless to grow but it is equally tough to maintain that growth.” &nbsp;Joshi’s company around six years ago thought of getting an ISO certificate but dropped the idea because of the lengthy documentation process. But, he slightly modified the procedures and applied all the quality measures on the functioning of the company.&nbsp;</p>
<p style="text-align: justify;">
	When it comes to the human resource management, he has not left any stone unturned to keep his employees happy and motivated. He says that performance based incentives and regular motivational packages are offered to the human resources to keep their high spirits going higher.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Defining Success</strong></p>
<p style="text-align: justify;">
	For different people, success comes at different shapes and sizes. For Joshi, it comes in the form of satisfaction and joy. He recalls his initial days when he used to be filled with joy on closing a deal. “Everything does not remain the same forever. I am constantly in search of what next. If the newness is missing, pleasure diminishes,” he explains, “More than money, I enjoy the process of making money.”</p>
<p style="text-align: justify;">
	Joshi suggests sincerity and dedication to the work is must for both satisfaction and achieving success. “You have to believe on what you do and you have to be passionate about it. When one enjoys work, money does not become the first priority and success will automatically follow. Money is its by-product,” says he.</p>
<p style="text-align: justify;">
	<strong>The Personal Space</strong></p>
<p style="text-align: justify;">
	When it comes to bridging the professional and personal life, Joshi likes them to remain at a distance. He does not mix the two. He says that unless it is an emergency, he neither takes official work to home nor receives any work related phone calls from home. Saturdays are the days when he likes spending time with his family and giving chances to his hobbies and interests. When he gets free time, he adores going little adventurous. He loves hiking, trekking, cycling and roaming around in the nature. Joshi has also recently developed new hobbies – photography and golf. He plans to give more time to his interests and his desires that were sidelined on the process of pursuing bigger professional dreams.</p>
<p style="text-align: justify;">
	It has been more than two decades since he first started working. So, he desires to give some extra time for himself reducing the working hours. “I have been thinking to minimise my working hours and give little extra time for my personal interests,” Joshi promises.</p>
<p style="text-align: justify;">
	Similarly, at the back of his mind he has been slowly making rough sketch of retirement and succession planning. He wants to groom somebody capable so that he can handover his responsibilities. However, he does not plan to completely abandon his company and profession.</p>',
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			'description' => 'Trishakti Joshi, CEO of Elite Networks, likes to keep himself ahead of the market which he wants to conquer with new technologies and every service that come attached to it. The believer in work, passion and dedication finds success in every satisfying moment he has found in the pursuit of his professional goals.',
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		'Article' => array(
			'id' => '882',
			'article_category_id' => '48',
			'title' => 'New Financial Lexicon',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Madan Lamsal</strong></p>
<p style="text-align: justify;">
	Without certain dedicated abbreviations, terms and jargons, no modern sector appears trendy and modern. The financial services definitely cannot fall behind in this innovative venture. What they were originated for and what exactly they have started to mean now is indeed a linguistic feast to cheer for. Some examples from a non-exhaustive glossary:&nbsp;</p>
<p style="text-align: justify;">
	<strong>Accrued Interest:</strong> An accumulated interest due in the account of the most-favoured borrower of the bank, which may never be paid.</p>
<p style="text-align: justify;">
	<strong>ACH:</strong> Association of Clever Herds, representing the corporate world created to buy time from their wives.</p>
<p style="text-align: justify;">
	<strong>AML:</strong> A new disease called Acute Myeloid Leukemia diagnosed among some businessmen caused by the flu emanating from Anti Money Laundering (AML) Act.</p>
<p style="text-align: justify;">
	<strong>Appraisal:</strong> An annual drama of awarding a crony of the management for promotion or favouring a mediocre firm at the cost of the best performer without connections.&nbsp;</p>
<p style="text-align: justify;">
	<strong>APR: </strong>A commonly used tool to make customers April Fools, previously known as Annual Percentage Rate.</p>
<p style="text-align: justify;">
	<strong>ATM:</strong> Any Time Malfunction machine to dispense money even from your own account.</p>
<p style="text-align: justify;">
	<strong>Availability Date:</strong> A choreographed schedule of senior bank officials to prove that they actually work sometime, if available for the cause of common business interests.</p>
<p style="text-align: justify;">
	<strong>Availability Policy:</strong> Bank&#39;s policy to indirectly announce its liquidity position by fixing the date when funds deposited into an account will be actually available for withdrawal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Bank Custodian:</strong> The Central bank, in case of Nepal NRB, is a specialized police custody for the bankers who remain recalcitrant to follow NRB directives issued not necessarily to maintain the safety of depositors&rsquo; assets but to prove that the central bank actually has some teeth and may bite anyone it doesn&#39;t like.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Bank:</strong> A glassed cage where you are made to feel like a pig when entered and your assets are valuated only a quarter of what they are actually worth for, and you cannot have any say at any point in time whether you deposit or borrow.</p>
<p style="text-align: justify;">
	<strong>Bankrupt:</strong> New certificate of dignity to most of the clients of most of the banks. And you can justify it by talking all day about recession.</p>
<p style="text-align: justify;">
	<strong>Bear Market:</strong> A cool alcoholic fizzy drink for the losers in the capital market, synonymous with the beer market.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Billionaire:</strong> A rare breed of individuals in Nepal who have never made their books of accounts public and never proved to have done illegal things.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Bull Market: </strong>A market place where oxen are sold and bought by the farmers right before the farming season.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Capitalism:</strong> A policy of almost every political party of Nepal that doesn&#39;t believe in anything less than accumulating capital by hook or by crook.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Collateral:</strong> A single basis of evaluating the borrower&#39;s credit-worthiness in the Nepali banking system, without which Nepali banks cannot even breathe. Things like credit records or project viabilities of the borrowers are bull sheet.</p>
<p style="text-align: justify;">
	<strong>Co-Signer:</strong> An individual who sings in the tune of the boss in the bank, also known as a co-maker.</p>
<p style="text-align: justify;">
	<strong>Deferred Payment: </strong>An act of postponing the payment for a future date which never comes; which has now become a widespread practice in the Nepali banking industry.</p>
<p style="text-align: justify;">
	<strong>Depression:</strong> A psychological phenomena reflecting the state of mind of the citizens, caused by the long run gloomy outlook of the economy.</p>
<p style="text-align: justify;">
	<strong>EBIT: </strong>Bank&#39;s earnings before irregularities and tampering.</p>
<p style="text-align: justify;">
	<strong>Electronic Banking: </strong>&nbsp; An internet or mobile-based service of the banks that allows even a non account holder to obtain account information and manage certain banking transactions through a personal computer, directly logging into the financial institution&#39;s portal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>KYC:</strong> Kill Your Customer &nbsp;&nbsp;</p>
<p style="text-align: justify;">
	<strong>Mutual Fund:</strong> A mutual practice of distributing hefty loans among the CEOs of the banks in a turnkey basis so that they can invest in real estate business.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Outstanding Check:</strong> An errand boy standing outside the door of an office carrying a bank&#39;s check.</p>
<p style="text-align: justify;">
	<strong>SLR: </strong>Self-loading rifle belonging only to the central bank, used to rob the banks in the veil of statutory liquidity ratio.</p>
<p style="text-align: justify;">
	<strong>Stagflation:</strong> When it is the time for the Royal Stag, the leisure borne out of inflation-induced inaction.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Students&rsquo; Loan:</strong> Loans given to students to buy sporty bikes, so as to enable them to undertake a number of dating projects simultaneously.</p>
<div style="text-align: justify;">
	&nbsp;</div>',
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		'Article' => array(
			'id' => '873',
			'article_category_id' => '40',
			'title' => 'Nepali Insurance Companies Are Paying Big Premium To Re-insurance Companies',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong style="color: rgb(35, 200, 250); font-size: 16px; text-align: right;">‘Nepali insurance companies are paying big premium to re-insurance companies’</strong></p>
<p>
	<img align="right" alt="Fatta Bahadur KC, Chairman Beema Samiti" height="329" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/fatta_cover_feb2013.jpg" style="margin:0 0 0 10px;" width="250" /></p>
<address style="text-align: right;">
	<strong>Prof Dr Fatta Bahadur KC</strong></address>
<address style="text-align: right;">
	<strong>Chairman</strong></address>
<address style="text-align: right;">
	<strong>Beema Samiti (The Nepali regulator of Insurance Sector)</strong></address>
<p>
	 </p>
<p>
	 </p>
<p style="text-align: justify;">
	<strong>What is the size of the aviation insurance market in Nepal?</strong></p>
<p style="text-align: justify;">
	Aviation insurance is one of the important portfolios in the insurance sector. So far as the size of the aviation insurance is concerned, it has been increasing every year. There are altogether 17 non-life insurance companies registered. But only seven of them are into the aviation insurance business. The annual premium collection from aviation insurance in Nepal is about Rs 3 billion.&nbsp;</p>
<p style="text-align: justify;">
	<strong>It is said that some insurance companies are trying to form a pool to handle the aviation insurance claims collectively. What is the latest progress in this regard?</strong></p>
<p style="text-align: justify;">
	I, too, have heard that some insurance companies are trying to tie &nbsp;up to form such a pool. But this is yet to get a concrete shape, as far as I know. I think the main objective behind forming such a pool is to reduce insurance risks in the aviation sector. We hope the pool will come into operation in the near future.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What future do you see for the aviation insurance business in Nepal?</strong></p>
<p style="text-align: justify;">
	The future of aviation insurance business is bright. As the government has already adopted a liberal economic policy, many new airliners have entered Nepal. Aviation insurance as a business has grown in Nepal with the growth in the domestic aviation sector. &nbsp;Air travel has become convenient and affordable for many Nepalis today. This has ultimately helped the aviation insurance business grow in the country.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Almost whatever the insurance companies earn from the aviation segment goes to the reinsurance companies abroad. Some are even said to be making losses in the aviation segment. It is said that the companies know that they are not going to make profits from the aviation segment. But they do aviation insurance just to show high amount of premium collections. What do you say?</strong></p>
<p style="text-align: justify;">
	It is obvious. Though, insurance companies should have retention capacities to bear the risks by themselves, most of them lack this. This is one of the reasons why they transfer their risks to the re-insurance companies. Consequently, Nepali insurance companies have to pay a high volume of premium to them. The margin between the premium collected from the airlines companies and the premium paid to the re-insurers is very small. It shows that they are not able to save even the cost to transfer their risks. They need to transfer funds to reinsurance companies. It is a very serious problem.&nbsp;</p>
<p style="text-align: justify;">
	<strong>How can we lower the high insurance premium?</strong></p>
<p style="text-align: justify;">
	First of all, the airlines should try to be safe from different risks. Other stakeholders like CAAN should also maintain the runways properly and other technical aspects, information dissemination practices etc. The pilots, too, should be well-trained. All other stakeholders in the aviation sector should take this matter seriously, work on it together and make careful collective efforts to avoid risks.</p>
<p style="text-align: justify;">
	<strong>Aviation insurance premium in Nepal is said to be among the highest in the world? Why is it so high?</strong></p>
<p style="text-align: justify;">
	Yes it is true. Since the premium is always determined by risks; a high risk ultimately draws a higher premium. This risk is mainly associated with aircraft accidents; the more the accident, the more the risks. We have been trying to reduce the risks in this sector which is known as mitigation of the risks.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The annual claims payout in the aviation sector has been constantly rising. Some people say this could further increase the already significantly high aviation insurance premium. How are we going to address this problem?</strong></p>
<p style="text-align: justify;">
	It is a compulsion for the aviation insurance business in Nepal. Generally, if the premium is high, the practice of insurance is low but in aviation insurance, if the premium is high you need to reinsure with other big companies because of the risk factor. You need to find reliable reinsurers, pay premium and transfer your risks to them. There is a direct and positive relation between the increasing rate of premium and the business of aviation insurance. However, if all these measures are properly adopted then the premium rate will be low.&nbsp;</p>
<p style="text-align: justify;">
	<strong>There are various types of aviation insurance policies in the world. Are all of them available in Nepal?</strong></p>
<p style="text-align: justify;">
	We have only few aviation policies which basically cover the aircraft, crew-members and passengers. It also covers the sky, and if both the parties agree, grounded risks are also included in the aviation insurance. Generally, an insurance policy depends on the requirement of the policy holder. Therefore, the requirements of the airliners play a key role in the agreement between the insurance companies and the airliners.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The country’s first-ever aviation insurance summit was organized in the capital recently. How helpful was this summit?</strong></p>
<p style="text-align: justify;">
	The summit was a milestone in Nepal’s aviation sector. It’s &nbsp;definitely a positive development. It helped the stakeholders in the aviation business to know each other and, at the same time, provided a platform to share their experiences, views and problems. I think the re-insurers, the under-writers and other stakeholders who participated in the programme knew the actual situation of Nepal and the aviation insurance business here. The summit was successful and the Nepali stakeholders have succeeded in addressing some of the key issue of the aviation insurance business in Nepal.</p>',
			'published' => true,
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			'description' => 'The margin between the premium collected from the airlines companies and the premium paid to the re-insurers is very small. It shows that they are not able to save even the cost to transfer their risks.',
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			'id' => '889',
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			'title' => 'Agriculture Focus: Ranjan Enterprises',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="Ranjan Enterprises" height="48" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_corporate_focus_ranjan_enterprises_logo.jpg" style="text-align: justify;" width="227" /></p>
<p style="text-align: justify;">
	Ranjan Enterprises Pvt Ltd (REPL) under the banner of LPRANJAN GROUP is a business enterprise, established in 2001 to carry out business in the field of agriculture sector. Chairman of the group is Laxmanjee Prasad. It has two sister bodies Ranjan Enterprises Pvt. Ltd and Ranjan Trade Concern.</p>
<p style="text-align: justify;">
	REPL carries out business in the field of agriculture sector dealing in products under agrochemicals (organic and inorganic), organic fertilizers, seeds, public health insecticides, fertilizers (micronutrient &amp; chemicals), etc. REPL caters business by appointing dealers &amp; supplying to corporate houses engaged in agriculture business and own consumption.</p>
<div style="float:right;margin:0 0 5px 10px;">
	<p style="text-align: justify;">
		<img alt="Shashi Ranjan, Ranjan Enterprises" height="178" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_corporate_focus_ranjan_enterprises_shashi.jpg" width="150" /></p>
	<address>
		<strong>Shashi Ranjan</strong></address>
	<address>
		<strong>Director</strong></address>
	<address>
		<strong>Ranjan Enterprises Pvt Ltd</strong></address>
</div>
<p style="text-align: justify;">
	Sharing the purpose of establishment of the company, Shashi Ranjan Director of REPL said, “Our initial aim was to cater the remote regions of Nepal by setting up an integrated platform to provide the best quality and most reliable products throughout the country for the welfare of the farmers, plant growers and local consumers”.&nbsp;</p>
<p style="text-align: justify;">
	REPL plans to move into imports of fertilizers like Urea, DAP and MOP. Agriculture equipment like cultivator, harrow, tractors and mini tillers &nbsp;are the next areas where the company is planning to enter in the future. The company also plans to venture into agriculture farm by purchasing land and cultivating and growing vegetables and fruits and breeding livestock as well.&nbsp;</p>
<p style="text-align: justify;">
	REPL have recently launched fertilizers like Copper Sulphate, Ammonium Sulphate and Organic fertilizer named JAIVIK. REPL along with its sister concern has ventured into Agriculture Sprayers and Agriculture Shade Nets of different size and capacity.&nbsp;</p>
<p style="text-align: justify;">
	Director Ranjan shared that there is no turning points yet for them but because of trust and goodwill, they are able to win the hearts of consumers and also the corporate sector who have been doing business with them. With the trust, we have ventured into different fields of agriculture activities, says Ranjan.&nbsp;</p>
<p style="text-align: justify;">
	Ranjan Trade Concern (RTC) has been established to handle local business and related imports in FMCG and agriculture sector. Currently, the company plans to focus steps in taking further steps in trading business emphasising with imports, distributorships and general purchases of FMCG goods, industrial goodsn and agriculture products from around the world for trading, exclusively in the country. RTC also plans to move into import of chemicals, and petrochemicals.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Major Products</strong></p>
<p style="text-align: justify;">
	REPL have launched mass range agriculture. Insecticides, Fungicides, Rodenticides, Organic insecticides, organic fungicides, organic fertilizers, chemical fertilizers, Public Health Insecticides, Knapsack Sprayers, Garden Sprayers and spare parts, Agriculture shade nets and seeds are some examples.</p>
<p style="text-align: justify;">
	<strong>Human resource management&nbsp;</strong></p>
<p style="text-align: justify;">
	REPL has small human resource team. “Being a small business enterprise our team is small,” said director Ranjan. “But our team is well experienced to handle problems of farmers, especially in their fields such as pests’ management.”&nbsp;</p>
<p style="text-align: justify;">
	<strong>Corporate Social Responsibility (CSR)</strong></p>
<p style="text-align: justify;">
	While accepting that his organization is well aware of corporate social responsibility, director Ranjan said, “At present we have not moved directly into CSR projects but have plans to do so in near future”.</p>
<p style="text-align: justify;">
	<strong><span style="font-size:14px;"><span style="color: rgb(255, 0, 0);">SWOT Analysis</span></span></strong></p>
<p style="text-align: justify;">
	<b>Strength:</b></p>
<p>
	Farmers and other consumers Satisfaction &amp; trust&nbsp;</p>
<p>
	<span style="font-size: 14px;"><b><span style="font-size:12px;">Weakness:</span></b></span></p>
<p>
	<span style="font-size: 14px;"><span style="font-size:12px;">Still unable to tap new markets within the country due to lack of awareness and lack of new partners.&nbsp;</span></span></p>
<p>
	<span style="font-size: 14px;"><b><span style="font-size:12px;">Opportunity:</span></b></span></p>
<p>
	<span style="font-size: 14px;"><span style="font-size:12px;">Huge market for agriculture related product, rising awareness&nbsp;</span></span></p>
<p>
	<span style="font-size: 14px;"><b><span style="font-size:12px;">Threats:</span></b></span></p>
<p>
	<span style="font-size: 14px;"><span style="font-size:12px;">Unhealthy competition within the sector</span></span></p>
<p style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(255, 0, 0);"><br />
	</span></span></p>
<p style="text-align: justify;">
	<img alt="Ranjan Enterprises" height="129" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_corporate_focus_ranjan_enterprises_products.jpg" width="580" /></p>',
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			'title' => 'Banks In CAMELS And EAGLES',
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	 </p>
<p style="text-align: justify;">
	<strong>By Rashesh Vaidya</strong></p>
<p style="text-align: justify;">
	Standard Charted Bank Nepal Limited is seen at number one position under the CAMELS Rating. The bank stood at the number one position as per the evaluation done on its second quarter financial report of the fiscal year 2012-13. The bank has been capable to maintain good total expenses to total assets ratio during the period among the 32 commercial banks. Similarly, the bank has also maintained good return on assets as well.&nbsp;</p>
<p style="text-align: justify;">
	The newly established commercial banks stood at the top rank under the EAGLES Rating. The low level of non-performing loan to total loan and advance ratio was the main reason behind these banks to stand at the top rank. Similarly, the high growth ratio of the loan and advances also boosted them to get top rank.&nbsp;</p>
<p style="text-align: justify;">
	As per the EAGLES rating, Commerze and Trust Bank Limited stood at the first position. Similarly, Sanima Bank Limited which was upgraded from the development bank to commercial bank came at second. &nbsp;The good position of the credit-deposit ratio and capital adequacy ratio of the newly opened bank has helped them to gain the top position.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The CAMELS system evaluates banks on the following six parameters:</strong></p>
<ol>
	<li style="text-align: justify;">
		<strong>Capital Adequacy: </strong>Capital adequacy has been the main pillar of existence of any bank. Banks have to maintain a proper mix of different types of capitals to avoid pressure on their dividend policies and inadequacy of total capital funds against the risk exposure. Capital adequacy is measured by the Capital to Risk-Weighted Assets Ratio (CRAR). A sound capital base strengthens the confidence of depositors.</li>
	<li style="text-align: justify;">
		<strong>Asset Quality:</strong> One of the indicators for asset quality is the ratio of non-performing loans to total loans (Gross Non-Performing Assets - GNPA). The gross non-performing loans to gross advances ratio is more indicative of the quality of credit decisions made by bankers. A higher GNPA is indicative of poor credit decision-making.</li>
	<li style="text-align: justify;">
		<strong>Management: </strong>The ratio of non-interest expenditures to total assets can be one of the measures to assess the working of the management. This variable, which includes a variety of expenses, such as payroll, workers’ compensation and training investment, reflects the management policy stance.</li>
	<li style="text-align: justify;">
		<strong>Earnings:</strong> It can be measured as the return on asset, ratio.</li>
	<li style="text-align: justify;">
		<strong>Liquidity:</strong> The ratio of cash maintained by a bank and balances with the central bank to the total asset, is an indicator of the bank’s liquidity.&nbsp;</li>
	<li style="text-align: justify;">
		<strong>Sensitivity to Market Risks/Systems and Control:</strong> Risks associated with adverse movements in the exchange rates (including gold positions), interest rates, liquidity and investment in equity are covered under market risk management. A bank faces market risks either from its investments in government securities and bonds or from the exchange rate risk that persist in matching position. The market risk is managed by the banks’ Asset and Liability Committee (ALCO) which assesses policies and levels of risk appetite. &nbsp;Similarly, the central bank of Nepal, Nepal Rastra Bank has made a provision of additional 2 percent of the total Risk Weighted Exposures by Supervisory Review.</li>
</ol>
<p style="text-align: justify;">
	<img alt="Top Ten Banks as per CAMELS and EAGLES" height="292" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_sectoral_banks_per_camels_and_eagles.jpg" width="580" /></p>
<p style="text-align: justify;">
	In the CAMELS rating system, each bank is assigned two sets of ratings:</p>
<ol>
	<li style="text-align: justify;">
		Performance Ratings, which comprise six individual ratings that address each of the CAMELS components; and</li>
	<li style="text-align: justify;">
		An overall Composite Rating, which is a single rating based on a comprehensive assessment of the bank’s overall condition.</li>
</ol>
<p style="text-align: justify;">
	Both the ratings are scored on a numerical scale of 1 to 5 in the ascending order of supervisory concern where “1” represents the best rating and “5” the worst.</p>
<p style="text-align: justify;">
	Here is a description of the rating scores for each of the five components:</p>
<p style="text-align: justify;">
	Rating 1 (A) indicates very strong performance</p>
<p style="text-align: justify;">
	Rating 2 (B) indicates above-average performance that adequately provides for a safe and sound operation of the BFIs.</p>
<p style="text-align: justify;">
	Rating 3 (C) indicates performance that is flawed to some degree.</p>
<p style="text-align: justify;">
	Rating 4 (D) indicates unsatisfactory performance which, if left unchecked, could threaten the solvency of the BFIs.</p>
<p style="text-align: justify;">
	Rating 5 (E) indicates very unsatisfactory performance and calls for immediate remedial attention for the survival of the BFIs.</p>
<p style="text-align: justify;">
	The rating of banks can be further developed by giving a score to each component of the CAMELS, known as the Composite CAMELS Rating Score. The Composite CAMELS Rating can be calculated as:</p>
<p style="text-align: justify;">
	Composite CAMELS Rating= C (0.25) + A (0.25) + M (0.25) + E (0.10) + L (0.10) + S (0.05)</p>
<p style="text-align: justify;">
	Each of the above six parameters can be weighted on a scale of 1 to 100 and contains a number of sub-parameters with individual weightage.</p>
<p style="text-align: justify;">
	The EAGLES system is able to measure and compare banks’ performance in a more determinate, objective and consistent manner. The name is derived from the key success factors confronting banks today, i.e. Earning Ability, Asset quality, Growth, Liquidity, Equity and Strategy. This approach has gained credibility among the banking community and fund management industry in Asia, for competition analysis and investment planning, respectively.</p>
<p style="text-align: justify;">
	<img alt="Sectoral, march 2013" height="514" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_sectoral_banks_ratios.jpg" width="580" /></p>
<p style="text-align: justify;">
	<strong>EAGLES evaluate banks on the following six parameters:</strong></p>
<ol>
	<li style="text-align: justify;">
		<strong>Earning Ability:</strong> Earning ability is shown by three noteworthy indicators – Return on Assets (ROA), Return on Shareholders’ Fund (ROSF) and Income/Overheads Ratio (IOR). The importance of IOR is usually not well understood. The main point lies in that income depends on external market forces, while overheads are highly influenced by internal staffing. So, the banks must know how to adjust the staffing according to the market demand for its products and services. This is shown by three indicators - ROA, Return on Net worth (RONW) and IOR.</li>
	<li style="text-align: justify;">
		<strong>Asset Quality:</strong> Asset quality is best assessed by on-site inspection of the bank’s loan portfolio. If this is not possible, asset quality can be measured by the level of bad debt provisions, that is, bad and doubtful debts (BDD) as a percentage of total loans. A conservative approach will dictate that the quantum of provision to err on the high side is rather low. This is best judged by the level of bad debt provisions, that is, bad and doubtful debts as a percentage of total loans. A conservative approach will dictate that the quantum of provision is on the high side is rather low.</li>
	<li style="text-align: justify;">
		<strong>Growth: </strong>Growth rates of loans and core deposits are the most important indicators of how a bank wants to position itself in the market.</li>
	<li style="text-align: justify;">
		<strong>Liquidity:</strong> Liquidity can be described as the ability of a bank to have sufficient funds to meet cash demands for loans, deposit withdrawals and operating expenses. For this reason, a balance should be made between the amount of deposits garnered and the quantum of loans extended. The indicator is the deposit-to-loan ratio or credit-deposit ratio (CD Ratio).</li>
	<li style="text-align: justify;">
		<strong>Equity:</strong> Equity level and capital adequacy have a profound impact on the bank. International guideline (Basel II) stipulates that a bank must have a minimum capital equivalent to 8 per cent of the risk adjusted assets. Even the central bank of Nepal, the NRB, has mentioned a comfort zone of 6 and 10 per cent of core capital and total capital funds, respectively, based on the risk-weight assets (percent).</li>
	<li style="text-align: justify;">
		<strong>Strategy:</strong> The effective management of a bank’s strategy is indicated by the strategic response quotient (SRQ). It assesses the management’s ability to lend, garner deposits, generate fee-based income and manage the operating cost. An appropriate balance of the three core banking activities depends on the bank’s strategy. The SRQ is obtained by dividing the interest margin by net operating cost (that is, total operating cost minus fee income).</li>
</ol>
<p style="text-align: justify;">
	Seventeen banks could not feature on the top-ten list under both ratings. The banks with negative capital adequacy ratio and very low return on assets were seen behind in ranking under CAMELS rating. &nbsp;Similarly, the banks with huge amount of non-performing loan and negative return on assets were seen at the lowest rank under EAGLES rating.</p>',
			'published' => true,
			'created' => '2013-03-23',
			'modified' => '2013-04-17',
			'keywords' => '',
			'description' => 'The good position of the credit-deposit ratio and capital adequacy ratio 
of the newly opened bank has helped them to put at top position.',
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	(int) 2 => array(
		'Article' => array(
			'id' => '886',
			'article_category_id' => '47',
			'title' => 'A Balanced Life',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	 </p>
<p>
	<img alt="Sumit Kedia, Personality, March 2013" height="432" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_personality_sumit.jpg" width="450" /></p>
<p>
	Sumit Kedia, the Executive Director of Kedia Group and the Director of Sita Ram Gokul Milks Ktm Ltd, vividly remembers the time when his company was deep in debt and was on the verge of being sold out. “Those were the most stressful times of my life. The Bank had no trust upon us, and the entire Group was about to be blacklisted,” recalls Kedia. It all happened immediately after he joined the company after completing his studies.&nbsp;</p>
<p>
	<strong>Making first moves</strong></p>
<p>
	New to the business and the entire business scenario of Nepal back then, Kedia says he was overwhelmed by the situation at first. Gradually, he with the help of the Group was able to convince the banks to give some leverage to the company. One of the banks agreed to swap the loan and with some arrangement, he was able to pay off the entire loan after some time.&nbsp;</p>
<p>
	On the management part, he made the backward linkage strong by directly interacting with the farmers and thus, creating an economic interdependence. This, in turn, improved the quality and quantity of the raw material. “I personally met the farmers; I went to cow sheds and educated them. As a result, we received better quality raw material and enjoyed more security than our competitors,” explains Kedia. He also introduced new technology and updated the equipments used in the factory. This significantly enhanced the efficiency and the cost of production went down as well.</p>
<p>
	<strong>Carving a niche</strong></p>
<p>
	All of Kedia’s efforts have finally paid off. Today, Sita Ram Gokul Milks, a sister concern of Kedia Group is nation’s leading dairy processor and distributor, with production capacity of more than 2.86 million gallons of milk per year. The company has completed the journey of 17 years, and operates through a highly advanced technological plant with latest machineries producing milk and dairy products like milk, ghee and butter. The company is all set to produce flavoured milk and paneer within the next month. &nbsp;</p>
<p>
	Kedia firmly believes that responsibility with accountability is the mantra to success. “Nothing can be achieved alone, but a responsible and accountable team working for a common goal can achieve almost anything,” says Kedia. Kedia has been taking care of Sita Ram Gokul Milks for the last 10 years.&nbsp;</p>
<p>
	<strong>Memory lane</strong></p>
<p>
	Born to Bishwa Nath Kedia and Krishna Devi Kedia in Birgunj in 1976, Kedia did his entire schooling and higher education in India. During his school years, he was a hostel student in Darjeeling and Mussoorie. He completed his high school in Delhi and graduated from DAV College in Chandigadh, and completed his post graduation in MBA from Symbiosis Institute of Business Management of Pune.&nbsp;</p>
<p>
	As a child, most of his time was spent in hostel. “I used to come home only for holidays, so found it hard to adjust with my family. I was more comfortable with my friends than with my family,” recalls Kedia. He was home only for a few months in a year and also was oblivious of the development of the family group, Kedia Group.</p>
<p>
	After completing his education, he returned home and all of a sudden he was in family atmosphere that he wasn’t much used to, and also was into business abruptly. “I really found it hard to manage the three major parts of my life, my friends circle, my family and my business. &nbsp;But today, I have balanced all three aspects of my life,” says Kedia. &nbsp;As he became more involved with family and business, his friends circle shrunk. Today, Kedia says family and business are his top priority.&nbsp;</p>
<p>
	Married for 10 years with Ritu Kedia, Kedia is a father of a son and a daughter, Rachit Kedia and Shristi Kedia. His marriage was an arranged one and he didn’t even know her wife very well before marriage. “We were given just half an hour to discuss and decide. Within that short time, I fell in love with her eyes, and I immediately said yes. I’m happy I made the right decision,” shared Kedia.&nbsp;</p>
<p>
	<strong>Social involvement</strong></p>
<p>
	Kedia is involved with Round Table Nepal, an international fraternity with both business and family gatherings. “In this fraternity, there are people from business community and also their families. This has given me friends for life, with same wavelength. We go on various outings and picnics through the fraternity,” says Kedia. &nbsp;He usually spends his evenings and weekends with the friends of the fraternity, but still feels there is nothing like childhood friends. &nbsp;Kedia is also the First Vice President of Nepal Dairy Association and has been the Director of National Dairy Development Board for two tenures.&nbsp;</p>
<p>
	<strong>Finding inner peace</strong></p>
<p>
	&nbsp;As a student, Kedia loved to play basketball and was also in the college team. “I’d still love to play now, but my business doesn’t really allow me to do that anymore. However, after a stressful day, I like to give some time only to myself,” says he. He is a member of health club in Radisson hotel, loves swimming sauna and steam, and does cardio exercises. Kedia says he isn’t much into books, watches movies at times, doesn’t really care about gadgets. “I’m a simple person with simple desires; I want to lead a simple and modest life. I don’t believe in showing off and pretence. Kedia travels for work and leisure, but thinks he needs to take more vacations “I need to improve this part of my life. I don’t take many vacations. I’m trying to do it this year, may be ill go to Switzerland this year with my family,” says Kedia. &nbsp;&nbsp;</p>
<p>
	<strong>Changed dream</strong></p>
<p>
	Growing up, Kedia had dreams of being in hospitality and tourism business. He dreamt of owning a hotel as a graduate student and he even applied to study Hotel Management in Switzerland after graduating, but says it didn’t work out. Life had other plans for him. “As a member of a huge joint family, family’s dreams and decision always meant more than that of a member. Family’s decision mattered more to me, and I was needed in the group. So, I gave up my dream for my family,” shared Kedia.&nbsp;</p>
<p>
	<strong>Experience speaks</strong></p>
<p>
	Introvert by nature, Kedia says he is a shy guy. Once he was invited as a chief guest at a co-operative’s AGM. He had to give a speech in public, but he became very nervous and he completely blacked out. “I don’t even remember what I said there. With time, I improved my public speaking skills and I have no problem with that today,” says Kedia.&nbsp;</p>
<p>
	Kedia sees Vinod Chaudhary is his idol, and says his struggle and success has always been an inspiration to him. &nbsp;Kedia had family relations with Chaudhary, and personally knew him as he is also a member of Young Entrepreneur Forum (YEF) under Confederation of Nepalese Industries (CNI). He also sees Shankar Lal Kedia, his uncle as idol within his family.&nbsp;</p>
<p>
	Kedia opines that capital should stay within the country, regardless of the challenges faced by businessmen and entrepreneurs. According to him, rather than criticising the government and society, one should maintain a positive mentality and enhance the economy with a combined team spirit. He also feels that the spirit of ‘us’ is needed for development of a family, an organisation and an entire nation.</p>
<p>
	<strong>Foreseeable future</strong></p>
<p>
	As for his future plans, Kedia is not in investment mode now, as he feels there is no stability in the country. He thinks at such a point, it’s wise to retain what he has. New ventures may be started only after the problem of labour and load shedding are over. &nbsp;</p>
<p>
	Kedia says he loves his profession, and work is his worship. He feels that he needs to do something for the company till he retires. “I work together with all my staffs, all my team, not just my personal growth, but also for their growth, I like to see through the perspective of ‘us’ rather than ‘me’. I like to create a win-win situation for all,” says Kedia.&nbsp;</p>
<p>
	Kedia says that if all goes well, he may also be involved in the hospitality business. “After all, fulfilments of inner desires give you true satisfaction. It was always my dream to be in the sector. Let’s see what future has in store,” Kedia is optimistic.</p>
<div style="text-align: justify;">
	<img alt="Sumit Kedia with Family" height="378" src="http://newbusinessage.com/ckfinder/userfiles/Images/march2013_personality_sumit_with_family.jpg" width="514" /></div>',
			'published' => true,
			'created' => '2013-03-23',
			'modified' => '2013-04-17',
			'keywords' => '',
			'description' => 'Life always has equal share of success and failure, one should never forget his roots when he is on top of success and one shouldn’t let the fire inside him die out when faced by failure, says Sumit Kedia a young business person, rephrasing what he learnt from his uncle Shankar Lal Kedia.',
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	(int) 3 => array(
		'Article' => array(
			'id' => '885',
			'article_category_id' => '48',
			'title' => 'Poems By Professionals',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	Nepal&rsquo;s business community has now ample time for rejuvenated aesthetic sense and cascading creativity as there is no business, no money and virtually no work as country reels under seemingly never-ending uncertainty. Many businessmen and professionals have thus tried to solace themselves by expressing pangs and pains in poetry. Here are few scattered pieces of poems taken from their diary. Please read them all:</p>
<p>
	&nbsp;</p>
<p>
	&nbsp;</p>
<p>
	<strong>From a banker:</strong></p>
<p>
	<em>A liquidity crisis again envelops&nbsp;</em></p>
<p>
	<em>Base rate, KYC, Basel III to adhere</em></p>
<p>
	<em>In a market highly flawed</em></p>
<p>
	<em>By the grace of self declared Gods.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a realtor:</strong></p>
<p>
	<em>It boggles me how fast</em></p>
<p>
	<em>The land under me caved in</em></p>
<p>
	<em>Why all fingers pointed to me</em></p>
<p>
	<em>Not the chaps aired the bubble first?</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a jeweler:</strong></p>
<p>
	<em>Random walk of &nbsp;price of gold</em></p>
<p>
	<em>Sellers are at the hold</em></p>
<p>
	<em>Buyers feel over-sold.</em></p>
<p>
	<em>But the reality is never told.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From an investor:</strong></p>
<p>
	<em>Just look at the NEPSE index</em></p>
<p>
	<em>Leaves anyone always perplexed</em></p>
<p>
	<em>As market is bullish taking on risk</em></p>
<p>
	<em>Erring politics smashes it in brisk.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From an economist:</strong></p>
<p>
	<em>The affair of the state is iffy&nbsp;</em></p>
<p>
	<em>The guardian angels acting sneaky&nbsp;</em></p>
<p>
	<em>The mood is damp, almost piffy</em></p>
<p>
	<em>And economy stands fiscal cliffy.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a wage-earner:</strong></p>
<p>
	<em>No job, what else to mention?&nbsp;</em></p>
<p>
	<em>No relief from perennial privation,</em></p>
<p>
	<em>The minimum wage in the nation</em></p>
<p>
	<em>Is never tied to the rate of inflation.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a business leader:</strong></p>
<p>
	<em>We must certainly preface&nbsp;</em></p>
<p>
	<em>Taxing few honest and rich</em></p>
<p>
	<em>As the socialists these days profess</em></p>
<p>
	<em>Will not fill ravine of whopping deficit.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a social planner:</strong></p>
<p>
	<em>We are finding it absurd</em></p>
<p>
	<em>Plans we heard were never delivered</em></p>
<p>
	<em>But all the party comrades did prosper&nbsp;</em></p>
<p>
	<em>People left to have suicide preferred.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a political economist</strong></p>
<p>
	<em>When will parties exhibit maturity?</em></p>
<p>
	<em>Help create stable income and security</em></p>
<p>
	<em>So there could be a sense of certainty&nbsp;</em></p>
<p>
	<em>And markets start to behave with surety.</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>From a planner:</strong></p>
<p>
	<em>Do policy makers really have any plan</em></p>
<p>
	<em>On jobs, inflation and population?</em></p>
<p>
	<em>If it isn&rsquo;t the leaders concern&nbsp;</em></p>
<p>
	<em>What if we lose our temper soon?</em></p>
<p>
	&nbsp;</p>
<p>
	<strong>Finally, from a voter:</strong></p>
<p>
	<em>Our ears can&rsquo;t hear anymore sermon</em></p>
<p>
	<em>About job creation and developed nation.</em></p>
<p>
	<em>We need more apprenticeship skills</em></p>
<p>
	<em>That meets our needs and fixes growth ills.&nbsp;</em></p>
<p>
	<em>Is there anybody to listen?</em></p>
<div>
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-03-23',
			'modified' => '2013-10-21',
			'keywords' => '',
			'description' => 'Nepal’s business community has now ample time for rejuvenated aesthetic sense and cascading creativity as there is no business, no money and virtually no work as country reels under seemingly never-ending uncertainty.',
			'sortorder' => '769',
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	(int) 4 => array(
		'Article' => array(
			'id' => '884',
			'article_category_id' => '45',
			'title' => 'Corporate Movements February 2013',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="color:#f00;"><strong><span style="font-size: 16px;">Newcomers</span></strong></span></p>
<p>
	<img align="left" alt="Jhalak Prasad Khanal" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/jhalak_corporate_movements_feb2013.jpg" style="margin: 0px 10px 0px 0px;" width="100" /></p>
<p>
	<strong>Jhalak Prasad Khanal</strong>has joined Vibor Bikas Bank Ltd as CEO after Ajay Ghimire, the founding CEO of the bank resigned last month. Earlier, Khanal was CEO of Siddhartha Development Bank.</p>
<p>
	 </p>
<p>
	 </p>
<p>
	 </p>
<p>
	<img align="left" alt="Ramesh Ghimire" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/ramesh_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /><strong>Ramesh Ghimire&nbsp;</strong>has joined Sarada Group (SPG Trading Pvt Ltd.) as Chief - Sales &amp; Marketing. Earlier, he was Head – Sales &amp; Marketing at Robin Export Import Marketing Pvt. Ltd.</p>
<p>
	 </p>
<p>
	 </p>
<p>
	 </p>
<p>
	<img align="left" alt="Sanjay Ballav Pant" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sanjay_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /><strong>Sanjay Ballav Pant&nbsp;</strong>has joined Standard Chartered Bank Limited as Head of Audit. Earlier, he was at Janata Bank as Head of Audit.&nbsp;</p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	 </p>
<p>
	 </p>
<p>
	<strong>Dr Khem Raj Bhetwal</strong> has joined Rising Development Bank Limited, Narayangarh as CEO.</p>
<p>
	 </p>
<p>
	<strong>Milan Mani Sharma </strong>has joined Ncell as Spokesperson. Earlier, he was Bureau Chief at The Republica English daily.</p>
<p>
	 </p>
<p>
	<img align="left" alt="Mani Ram Pokhrel" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/mani_corporate_movements_feb2013.jpg" style="margin: 0px 10px 0px 0px;" width="100" /></p>
<p>
	<strong>Mani Ram Pokharel&nbsp;</strong>has been appointed as Chief Executive Officer at Sambridhi Bikas Bank Ltd., Gajuri. Earlier he was Chief Business Officer at H &amp; B Development Bank Ltd. Kathmandu.</p>
<p>
	 </p>
<p>
	 </p>
<p>
	 </p>
<p>
	<strong style="font-size: 16px; color: rgb(255, 0, 0);">Newcomers at Sunny Distillery Pvt. Ltd.</strong></p>
<p>
	<strong><img align="left" alt="Alok Baral" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/alok_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /></strong></p>
<p>
	<strong>Alok Baral</strong> has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Govinda Kumar Shrestha" height="121" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/govinda_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Govinda Kumar Shrestha&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Luv Dhoj KC" height="120" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/luv_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Luv Dhoj KC&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Narayan Baral" height="120" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/narayan_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Narayan Baral&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Santosh Raj KC" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/santosh_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Santosh Raj KC&nbsp;</strong>has joined Sunny distillery Pvt Ltd as a Head-Trade &amp; Marketing, Earlier he was Sr. TSE at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Suman Maharjan" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/suman_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Suman Maharjan&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Robin Shrestha" height="122" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/robin_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Robin Shrestha&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sr. Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<strong><br />
	</strong></p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong>Ramesh Shrestha&nbsp;</strong>has joined Sunny Distillery Pvt Ltd as Sales Officer. Earlier, he was at United Spirits Nepal Pvt Ltd.</p>
<p>
	<span style="color:#f00;"><span style="font-size: 16px;"><strong>Promotions</strong></span></span></p>
<p>
	<strong><img align="left" alt="Hari Sharma Neupane" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/hari_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /></strong></p>
<p>
	<strong>Hari Sharma Neupane</strong> has been promoted as Regional General Manager for Bottlers Nepal (Terai) Ltd. Earlier, he was Country Human Resource Manager in Bottlers Nepal Ltd.</p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Bala Ram Bista" height="121" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/bala_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Bala Ram Bista&nbsp;</strong>has been promoted as General Manager of Sunrise Bank Limited. Earlier, he was Deputy General Manager at Sunrise Bank’s head office.</p>
<p>
	 </p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><img align="left" alt="Prakriti Tuladhar" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/prakriti_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" />Prakriti Tuladhar&nbsp;</strong>has been promoted as Finance Controller of Bottlers Nepal Limited. Earlier, she was Regional Finance Manager.&nbsp;</p>
<p>
	<strong><span style="font-size:16px;"><br />
	</span></strong></p>
<p>
	<strong><span style="font-size:16px;"><br />
	</span></strong></p>
<p>
	<strong><span style="font-size:16px;"><br />
	</span></strong></p>
<p>
	<strong><span style="font-size:16px;"><br />
	</span></strong></p>
<p>
	<strong><span style="font-size:16px;">Resignations</span></strong></p>
<p>
	<strong><img align="left" alt="Rabin Shrestha" height="123" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/rabin_corporate_movements_feb2013.jpg" style="margin:0 10px 0 0;" width="100" /></strong></p>
<p>
	<strong>Rabin Shrestha</strong> has resigned from Standard Chartered Bank Limited as the Head of Audit.</p>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>
<div>
	 </div>',
			'published' => true,
			'created' => '2013-03-16',
			'modified' => '2013-03-16',
			'keywords' => '',
			'description' => 'Corporate Movements for the month of February',
			'sortorder' => '768',
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	(int) 5 => array(
		'Article' => array(
			'id' => '879',
			'article_category_id' => '57',
			'title' => 'Replica Of Brands',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Sajag Karki</strong></p>
<p>
	<img align="right" alt="Brand Talk, February 2013" height="674" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/brand_talk_feb2013.jpg" style="margin:0 0 0 10px;" width="220" /></p>
<p style="text-align: justify;">
	Nike, Reebok, Ray Ban, Gucci, Armani - you name it and there are replicas of every brand imaginable. There are many such replicas of brands available which people tend to purchase knowingly or unknowingly as the original one. One may think what difference would it make and who could identify the real one? Well, one might be right for all of them look the same at a glance. Also, the replicas give huge respite to those consumers who cannot afford the real offering of the brand. Hence, there is a huge market for this ranging from high quality replicas to the dirt-cheap ones. However, fake is fake and if one takes a closer look at it, one can easily identify and feel the difference. The fake ones have blurred logos, bad packaging, inferior materials which could even harm the user. People who are loyal to their brands and who know the essence of brand always buy the original products no matter how high the cost may be. It is not just about sporting a fake logo in the product, for them it’s about their association with the brand which gives them their identity. In western countries like in the US there are tougher laws that protect from replicating branded products. Intellectual property like movies and any other creative work also have copyrights.&nbsp;</p>
<p style="text-align: justify;">
	It’s no big secret that copies of brands are easily available in the market with varying degree of quality. Every now and then we hear about logos being copied from well known companies. This is a shame to the business and an insult to the creativity of the designer. Business law states that a registered trademark cannot be used by others especially if it is of a well-known one because of its familiarity. Even the prevailing Nepali law states that the same name cannot be used by two different companies. Similarly, similar names that could confuse a customer, too, should be avoided. A logo, say of McDonalds, cannot be copied as it is a well known icon. You can get a Ray Ban for as cheap as anything from a roadside vendor while the original product bought from its branded showroom costs ten times more. There is undoubtedly a significant market for consumers of such fake products, thanks to the “Made in China” brand which mass-produces copies of almost all big brands. As there are no strict rules followed by the concerned authorities regarding patent rights, nobody seems to care about it and people are happy with the replicas. “Do as Romans do in Rome” seems to have become the norm.&nbsp;</p>
<p style="text-align: justify;">
	Looking at the practical side of things, it wouldn’t have been possible for consumers of many developing countries to purchase branded products if it weren’t for the much affordable replicas. Hence, with high quality replicas people are able to quench their thirst for their favourite brands which would have otherwise not been feasible. Thousands of people use these products every day, thanks to the leverage of the original brands that has made it possible.&nbsp;</p>
<p style="">
	<span style="font-size:11px;">The Article is based on research and author’s practical experience as a marketing and advertising professional. He can be reached at sajag_karki@hotmail.com.</span></p>',
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			'keywords' => '',
			'description' => 'There are many such replicas of brands available which people 
tend to purchase knowingly or unknowingly as the original one.',
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			'id' => '878',
			'article_category_id' => '41',
			'title' => 'Days Of Pure Portland Cement Gone Forever Time For PPC/PSP (Blended Cement)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Rajendra Prakash Manandhar</strong></p>
<p style="text-align: justify;">
	In 1984, I had just returned to Kathmandu after studying Cement Technology (1st batch) at CRI/NCB India. One of my friends asked me about the best type of cement which would last long and resist the polluted environment. We have seen in many toilets, drainpipes, roofs of buildings and other different places the cement plaster being deteriorated by urine, domestic waste, heat, polluted environment etc. I was once in a paper factory in Nepal. The factory had two concrete tanks, plastered with OPC cement. One tank was used for cold water and the other for warm water. The plaster in the warm water tank was cracked &amp; falling, but nothing had happened to the cold tank. At our homes, we notice water leaking and its spot spreading on the concrete ceiling. At many other places, we see hair cracks on the plastered wall. These are some of the common problems with OPC. The best way to minimize such problems is to use PPC/PSC instead of OPC.</p>
<p style="text-align: justify;">
	During the 9th International Congress on the Chemistry of Cement, New Delhi, India in 1992, one of the delegates had presented some video clips showing the difference between OPC &amp; PPC. The clips showed that two cement bars - one made of OPC and the other with PPC were kept immersed in water for 15 years. Both the bars had a steel rod inside. After 15 yrs, when the bars were opened, it was found that the steel rod in the PPC bar was fresh and Shinning like &nbsp;before, but the steel rod inside the OPC bar was found corroded and damaged. Thus the clips demonstrated the quality of PPC.</p>
<p style="text-align: justify;">
	AM Neville, an expert from world authority on cement &amp; concrete puts his view on PPC use: “The various cementitious materials- fly ash, silica fume, blast furnace slag, are here to stay. In their various ways and under various circumstances, they all have an important role to play in concrete, the days of Pure Portland Cement, once upon a time lauded by cement manufacturers have gone forever. Portland is vital ingredient, but the other cementitious materials are highly valuable”.</p>
<p style="text-align: justify;">
	A Pozzolanic cement consisting of ground clay and portland cement was described in 1909 by Potter, who stated that over 5000 tons of it were used in fresh water and seawater construction about that time. Later, this cement was known as Potter Cement. For many years up to about 1915, the Lafarge Company in France used burnt clay in to manufacture ‘undecomposable’ cement. A cement composed of 70 per cent Portland cement &amp; 30 percent burnt clay was used to build the Sennar Dam on the Blue Nile from 1919 to 1925. The same material (Oil-well Cements manufactured in Great Britain) was used in construction of the Bonneville Dam in the USA. Burnt clay, an excellent artificial Pozzolana, is produced by burning suitable clay or shale at a temperature of 600° to 900° and above. Artifical pozzolanas &nbsp;are burnt clays and shales, spent oil shales, burnt maize/ rice husks, burnt moler and pulverized fuel ‘fly ash’ whereas volcanic deposits are natural Pozzolana.</p>
<p>
	<strong>Effect of pozzolana addition on hydration and performance of PSC</strong></p>
<p style="text-align: justify;">
	Pozzolana was added (5-25% by weight) to the binary blends (OPC + Slag) and the resulting ternary blends were subjected to hydration and the performance was studied. The results indicated that addition of Pozzolana up to 10 per cent does not affect the properties of the binary system significations. It has also been observed that the ternary blends show better sulphate resistance compared to the binary blends.&nbsp;</p>
<p style="text-align: justify;">
	The production and use of blended cement, especially PPC, has gradually increased worldwide in recent years. Its larger use in different countries is an indicator of its acceptability as well as suitability for various types of construction. Industrial wastes or the by–product ‘fly ash’ from thermal power stations and slag from steel plants are used for making blended cements such as Portland Pozzolana Cement (PPC) and Portlant Slag Cement (PSC). More than 50 per cent of the blended cements produced is PPC today. Blended cements such as PPC and PSC offer unique advantages to the concrete. In other words, PPC is better than OPC in terms of quality, and strength, and has &nbsp;a longer life than OPC. We could compare these unique characters of PPC with the antibodies in the human body that protect from different diseases.&nbsp;</p>
<p>
	<strong>OPC is made by grinding Clinker and Gypsum&nbsp;</strong></p>
<p style="text-align: justify;">
	One ton of clinker requires approx 1.5 tons of limestone whose reserves are limited. PPC/PSC is manufactured by grinding clinker with fly ash/slag and gypsum or blending OPC with fly ash and slag. Thus, limestone consumption can be reduced by producing PPC/PSC.</p>
<p>
	OPC:<span class="Apple-tab-span" style="white-space: pre;"> </span>Clinker 95%+ Gypsum 5%</p>
<p>
	PPC:<span class="Apple-tab-span" style="white-space:pre"> </span>Clinker 70% + Gypsum 5% + Fly ash 25%</p>
<p>
	PSC:<span class="Apple-tab-span" style="white-space:pre"> </span>Clinker 45% + Gypsum 5% + Slag 50%, (depending upon quality of Slag)&nbsp;</p>
<p style="text-align: justify;">
	Nepal Bureau of Standard has formulated the standard for PPC and PSC. PPC/PSC produced has to meet the quality parameters laid down for specific cement type. Generally engineers/ consultant/ and builders contractors decide on the type of cement to be used in the construction of houses, building roads, water tanks etc. Design parameter, types of construction, ground condition, durability requirement and environmental conditions are important factors while selecting the appropriate type of cement for any application.</p>
<p>
	<strong>Extra Qualities Benefit of PPC</strong></p>
<p style="text-align: justify;">
	PPC provides numerous environmental benefits such as conservation of limestone, reduction in green house gases in cement manufacturing and utilization of industrial wastes/ by-products &nbsp;- fly ash. It thus increases production of cement in the country. The government can take more benefit by collecting more tax on technical grounds and economics. There is a sound case for use of PPC in concrete due to:</p>
<ul>
	<li>
		Water resistance due to high density concrete</li>
	<li>
		Improves workability of concrete&nbsp;</li>
	<li>
		Reduces bleeding&nbsp;</li>
	<li>
		Reduces heat of hydration preventing cracks</li>
	<li>
		No need to add any plasticizer like cement silica.&nbsp;</li>
	<li>
		Higher bang ultimate strength</li>
	<li>
		Reduces permeability of concrete enhanced&nbsp;</li>
	<li>
		Gives strength, has higher durability than OPC</li>
	<li>
		Higher resistance to sulphate and chloride&nbsp;</li>
	<li>
		Better resistance to alkali – aggregate reaction&nbsp;</li>
	<li>
		Reduces leaching calcium hydroxide&nbsp;</li>
	<li>
		Low volume (shrinkage) change preventing cracks.</li>
</ul>
<p style="text-align: justify;">
	Hydration of Ordinary Portland Cement (OPC): Hydration is the chemical process by which slilicates and aluminates of the cement clinker, when mixed with water, form hydrated compounds and during the course of reaction produce Calcium Hydroxide and Calcium Silicate Hydrate as shown in the following chemical equation:</p>
<p>
	<strong>Cement + Water→C-S-H + Ca (OH) 2</strong></p>
<p style="text-align: justify;">
	The compound Ca (OH) 2 being easily soluble in water leaches out of the concrete surface. This leached Ca (OH)2 deposits on the surface as a coating layer cause deterioration of the concrete.</p>
<p>
	<strong>Hydration of Portland Pozzolana Cement /Portland Slag Cement: &nbsp;</strong></p>
<p style="text-align: justify;">
	When water is added to PPC/PSC, hydration of OPC constituents occurs first. This is known as primary hydration. During this process, the calcium silicates of OPC reacts with water to produce Calcium Silicate Hydrate gel and Calcium Hydroxide. Subsequently, fly-ash / slag present in cement hydrate in presence of Ca (OH) 2 produced during OPC hydration, produces further Calcium Silicate Hydrates. This process is known as secondary hydration. This makes the hydrated silicate gel structure of PPC/PSC more denser and contributes to higher durability of the concrete. But in OPC hydration, the liberated Ca(OH)2 forms a coating layer on the concrete, which is weak and is therefore removed by external pollutants/environment causing deterioration of the concrete. But this Ca(OH)2 is utilized in PPC/PSC in formation of C-S-H (II) which is &nbsp;stronger than C-S-H(I) thus reinforcing the original silicate gel (I) to produce a much denser gel structure which contributes to a higher degree of strength and durability. More and more Ca (OH) 2 is &nbsp;absorbed preventing formation of coating as shown in the following chemical equations: &nbsp;&nbsp;</p>
<p>
	<strong>Clinker + Water → C-S-H (I) + Ca (OH) 2</strong></p>
<p>
	<strong>Ca (OH)2 + Fly Ash/ Slag → C-S-H (II)</strong></p>
<p>
	Concrete is not a structural material by itself but it slowly evolves into a structural material in four &nbsp;stages which are: &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;</p>
<p>
	<strong>1-Plastic, 2- Stiffening (setting), 3- Hardening, 4- Enduring</strong></p>
<p style="text-align: justify;">
	<img alt="Cement, Sectoral February 2013" height="276" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_rajendra_prakash_feb2013.jpg" width="580" /></p>
<p style="text-align: justify;">
	In the plastic stage of concrete, the fineness and initial setting time is important. In the stiffening stage, final setting time is important. Tri–Calcium aluminate (C3A) of cement helps in this. In the hardening stage, C3S, C2S, strength and fineness are of vital importance. But the most important stage for durability of the concrete structure is the enduring stage. In this stage, the high quality cement parameters balanced physical and chemical parameters, high strength, low impurities, high soundness, optimum fineness etc can only contribute to the durability and high performance of the concrete structure. Today’s needs are not only high 28-day strength of cement but also high quality cement with (TOTAL QUALITY ATTRIBUTS) EXTRA QUALITY BENEFITS other than strength. These benefits are the resultant products of best clinker &amp; fly ash/ slag of high quality and gypsum in desired proportion to achieve high ultimate physical/ chemical properties. There are a number of parameters to be controlled as inputs during clinker production. Among them, correct proportioning of oxides CaO, SiO2, Al2O3, Fe2O3 which is termed as raw mix design and proportioning raw materials is most important. The proportioning C3S, C2S, C3A, C4AF are fixed after raw mix design. The preferable ranges of these compounds are 45-55, 20-30, 5-8, 8-12 etc. Strict quality control of raw materials, cement, process control are to be carried out. In the same way, the blending material fly ash should be according to the parameter given by Nepal Standard NS285.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Application of PPC&nbsp;</strong></p>
<p style="text-align: justify;">
	PPC can be used in almost all kinds of construction where OPC is used. For example, general building construction (residential, commercial, and industrial), bridges, flyovers, culverts, dams, irrigation projects, water retaining structures, ports &amp; harbours’ etc - except where high early strength is critical. Taking into account the special properties of concrete made from PPC, there are specific types of job where the use of PPC would be particularly advantageous. These are:</p>
<ul>
	<li>
		Mass concrete used for dams, bridges, piers etc where low heat of hydration is desirable</li>
	<li>
		In hydraulic structures where water tightness is desired</li>
	<li>
		Concrete in saline environment such as pole foundation works etc</li>
	<li>
		In marine structure where impermeability and resistance to attack by sea water are important</li>
	<li>
		In sewers and other structure subject to acidic or sulphate attack</li>
	<li>
		In construction of swimming pools</li>
	<li>
		In construction of stadia where durability and ultimate &nbsp;high strength is &nbsp;required</li>
</ul>
<p style="text-align: justify;">
	Some construction engineers believe that the concrete made with PPC needs longer curing than OPC concrete. Actually, however, curing is required for all types of cement as long as possible. Some paints the concrete with oil, others cover it. Anyway the water mixed during casting the concrete is to preserve/save from evaporation due to atmospheric temperature.</p>
<div>
	<img alt="Sectoral February 2013" height="189" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_rajendra_prakash_feb2013(2).jpg" width="580" /></div>
<div>
	 </div>
<div>
	<div style="text-align: justify;">
		In major constructions, consumers/users hesitate to use Nepali cement except for a few brands. In order to substitute the import of cement, cement manufacturers have to be honest in qualities, attributes or extra quality benefits. Also, the Cement Association of Nepal has to commit fully to manufacture high quality and healthy cement which may have a long life and may also compete with the imported cement. Hence, the Association has to play a significant role in promoting PPC and highlight its usefulness. It can create awareness in the government, builders, users, contractors, construction engineers etc. That will also help to dispel the apprehension with regards to using PPC for construction works.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		PPC offers several unique advantages to the concrete and has gained universal acceptance. This article gives information on different aspects of PPC such as historical facts, its short chemistry, production, applications, and advantages. The concerned government authorities, designers etc are required to make a conscious choice between OPC and PPC according to the application and requirement and recommend using PPC in all construction works. Construction needs are durability against increased pollution level and environment effects.&nbsp;</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		In some plants in Nepal, the clinker produced from a vertical shaft kiln (VSK) is mixed with rotary kiln clinker to produce cement. In one clinker plant in Nepal, imported cement is mixed during cement production. Also we have seen/heard that imported or other cements are mixed with Nepali (local) cement in construction. A cement plant owner in western Nepal has used imported cement to build his own building. A proper raw mix design and proportioning raw materials produces the best cement clinker, and there is no need to mix other clinker/cement to increase the so-called “SHAKTI” (strength) of cement.</div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		Finally, for manufacturing PPC, clinker quality is of primary importance. To avoid illusion over VSK clinker Quality and to boost the morale of VSK owner and interested potential parties, here are some compressive strength data which are being received from the trial production of a modern VSK 500 ton per day plant of Rolpa Cement (P) Ltd. It is indeed a surprising data, not easily believable. A right “Raw Mix Design” (For VSK/ rotary kiln) is a manufacturing prescription to produce the best clinker which contributes in durability of PPC concrete after mixing with Pozzolana (fly ash). It is also a fact that 60 per cent of cement in China is produced from VSK. Productivity is a state of mind whereas making a Megh Quality Clinker is an art.</div>
	<div style="text-align: justify;">
		 </div>
	<div>
		<span style="font-size:11px;">The author has worked at Himal Cement, Jagadamba Cement, Siddhartha Cement, Cosmos Cement. At present, he is associated with Rolpa Cement (P) Ltd as Senior QC/Production Manager and can be contacted at rajendramdr@yahoo.com.&nbsp;</span></div>
</div>
<div style="text-align: justify;">
	 </div>',
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			'description' => 'PPC offers several unique advantages to the concrete and has gained universal acceptance. This article gives information on different aspects of PPC such as historical facts, its short chemistry, production, applications, and advantages.',
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	(int) 7 => array(
		'Article' => array(
			'id' => '877',
			'article_category_id' => '41',
			'title' => 'Responsible Business Endeavour',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong style="text-align: justify;">By Rajendra Desai</strong></p>
<p style="text-align: justify;">
	Nepal is bestowed with diversity in nature, religion, culture and people. This beautiful Himalayan country has witnessed a constantly changing social and economic dynamics over the years. In the last two decades, Nepal has made significant achievements in the national economy and the people’s standard of living.</p>
<p style="text-align: justify;">
	Statistics show that the poverty in Nepal has decreased from 42 per cent in 1995 to 26 per cent in 2011. Similarly, 12 per cent of the GDP is contributed by remittance. The country’s half population comprises of youth, that is energetic and young. Youth is the group which is considered the most productive among all age groups. These youths not only contribute to the society and the economy but also act as the decider of consuming new and trendy products and services.&nbsp;</p>
<p style="text-align: justify;">
	It’s a pleasure for a company, to be a partner in a country like Nepal and work with the people here. So, Kansai Nerolac Paints Ltd (KNPL), a subsidiary of Kansai Paints Company Ltd, Japan, commenced its operations in Nepal under the brand name Kansai Paints Nepal Pvt Ltd. Owing to Nepal’s progressive economy, Kansai Nerolac Paints Ltd (KNPL) acquired 68 per cent stake in Nepal Shalimar last year. KNPL has decided to utilise the manufacturing set up of Nepal Shalimar to manufacture Nerolac range of products which are imported currently in Nepal itself.&nbsp;</p>
<p style="text-align: justify;">
	The enhanced economic capabilities of the Nepali people have opened up tremendous market opportunities not only for paints but also for any other FMCG. Similarly, the young population makes a market with prospects for deeper penetration, and demand for new age products and services. The Nepali market has come up with scope for higher consumption along with increased attraction towards health-friendly products such as low or zero VOC paints.</p>
<p style="text-align: justify;">
	KNPL feels proud to have a presence in Nepal. Kansai Paints Company Ltd, Japan, having presence in about 17 countries, believes in transferring the expertise and superior range of products to the consumers in Nepal. This entry promises to provide products that are not only best in performance, but also safe and have minimum environmental impacts. Kansai Paints is the market leader in Japan and the eighth largest paint company of the world. Similarly, Kansai Nerolac in India is the second largest paint company of India.</p>
<p style="text-align: justify;">
	As of now, Nerolac in India has achieved a noteworthy success in the market. Statistics show that out of every 10 passenger cars, six are painted with products from Nerolac. Similarly, seven out of 10 premium cars, seven out of 10 utility vehicles, eight out of 10 auto rickshaws, eight out of 10 tractors, seven out of 10 scooters and seven out of 10 motorcycles in India are made beautiful with Kansai Nerolac paints.</p>
<p style="text-align: justify;">
	The company manufactures a diverse range of products &nbsp;- from decorative coatings for homes, offices, hospitals and hotels to sophisticated industrial coatings. The company believes in the concept of healthy homes. Kansai Nerolac paints are top notch products that do not have adverse impacts on health. They have antifungal traits, contain zero VOC, and are lead free and odourless. The company’s low VOC range of paints conforms to the strictest of International standards and has the NTH certification which compiles to a Green Seal -11 approval. Green Seal is an independent international agency which certifies green and environment-friendly products.</p>
<p style="text-align: justify;">
	Nerolac Impressions 24 Carat is one such Premium Luxury Emulsion that ensures a smooth velvety finish with sheen, excellent flow and brushability, washability and is stain-resistant. Along with it, the company produces award winning products to cater to every segment in the market.</p>
<p style="text-align: justify;">
	In today’s’ challenging marketing space, it is beyond imagination to succeed in the market without using the new media and the latest technologies to reach out to the targeted consumers. Our exclusive outlets and showrooms offer the customers an easy opportunity to choose and select the paints and colours of their choice. Likewise, the company has focused on 360 degree marketing by using various media such as hoardings, TV, Radio, Vehicles, Movie Theatres and Print Media.&nbsp;</p>
<p style="text-align: justify;">
	With a belief in inclusive growth, the company has always kept the contributions that can be made to the society at the centre while working anywhere in the world. Any business or economic growth should fuel the betterment of the society and people.</p>
<p style="text-align: justify;">
	<span style="font-size:11px;">The writer is the Country Head of Kansai Paints Nepal Limited.</span></p>',
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			'id' => '875',
			'article_category_id' => '42',
			'title' => 'Politics Is Investors’ Focus',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Bikram Chitrakar</strong></p>
<p style="text-align: justify;">
	Secondary market slipped off the trend as political dealings and uncertainty cooled down investor’s sentiment. The benchmark Nepse index receded 19.73 points or 3.86% to settle at 510.88 while the session’s high was on 3rd Jan with 533.46 and lowest was on 20th Jan with 508.23.</p>
<p style="text-align: justify;">
	Growing political ambiguity and actions of opposition parties to hit the road with protest programmes against the government pulled the confidence level of the investors in the first month of 2013. The presence of Investors presence was discouraged by sequence of these events. Decrease in the turnover suggests the battered confidence of the investors.</p>
<p style="text-align: justify;">
	Market actions, as the second quarter reports of the listed companies started coming, indicated negative evaluation from the investors of these reports. This was particularly so of the banking and financial institutions.&nbsp;</p>
<p style="text-align: justify;">
	Securities Board of Nepal (SEBON) has issued directives to check the money laundering. This Anti-Money Laundering and Counter-terrorist Financial Directive 2069 provides that securities business person should inform the authorities if the daily transaction of an individual and firm exceeds Rs 1 million. Similarly, other capital market participants are also ordered to keep proper records so as to detect if the source of the investment is suspicious.&nbsp;</p>
<p style="text-align: justify;">
	Performance by Sector</p>
<p style="text-align: justify;">
	Commercial banking sector with dominant volume of trade in Nepal stock exchange descended 29.40 points or 5.98% to rest at 491.48. Hydropower sector skid 62.29 points or 6.33% to 983.9. Others sector lost 15.27 points along with 13.54% down in development bank to 763.65 and 245.94 respectively. Similarly, hydropower sector plunged 62.29 points or 6.33% to rest at 983.9 while finance sector went downhill 9.53% to 250.51. However hotels sector added 84.80 points or 12.51% to close at 677.8. Insurance sub-index gained 70.68 points or 8.67% to 815.24. Manufacturing sector moved higher by 9.04 points to rest at 860.13.</p>
<p style="text-align: justify;">
	Sensitive index that measures the performance of 133 blue chips scrip at secondary market cut off 1.80 points or 1.35% to 133.52 while the float index calculated on the basis of real transaction descended 1.30 points or 3.73% to 34.83. Total of Rs. 1,780,346,071 turnover was realized during the review period from 6,228,761 units of shares traded via 23354 transactions.</p>
<p style="text-align: justify;">
	The accompanying figure depicts the sector-wise distribution based on the total volume of trade. As usual, commercial banking sector accounted for 77.39% of total trade. Hydropower sector occupied 6.86% while development bank grabbed 5.87% and remaining sectors made up for the rest.</p>
<p style="text-align: justify;">
	Technically, the Simple Moving Average (SMA) showed shabby conditions in the short term as Nepse Index surged above the 30 Days SMA. However, in long term the 200 Days SMA seems helpless despite &nbsp;roaring movements. Key resistance test at the level of 510 can determine the further movement and new target level.&nbsp;</p>
<p style="text-align: justify;">
	<img alt="Stock Taking, Bikram Chitrakar" height="484" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/stocktaking_feb2013.jpg" style="font-size: 11px;" width="403" /><img alt="Stock Taking, Bikram Chitrakar" height="409" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/stocktaking_feb2013(2).jpg" style="font-size: 11px;" width="419" /><img alt="Stock Taking, Bikram Chitrakar" height="412" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/stocktaking_feb2013(3).jpg" style="font-size: 11px;" width="392" /></p>
<p style="text-align: justify;">
	<span style="font-size: 11px;">Chitrakar is a Stock Analyst with Jamb Technologies Pvt Ltd.</span></p>',
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the government pulled the confidence level of the investors in the first month of 2013.',
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			'id' => '874',
			'article_category_id' => '40',
			'title' => 'Insuring Nepal’s Aviation Risks',
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			'content' => '<p>
	<strong>By Sushila Budhathoki</strong></p>
<p>
	<img alt="Cover Story February 2013" height="329" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_main_feb2013.jpg" width="550" /></p>
<p style="text-align: justify;">
	<span style="text-align: justify;">“The higher the risk, the higher the potential return,” goes a popular saying. The economic logic is however that the profit is higher when risks are minimized. And there comes the insurance business to help the other businesses to reduce risks. In the process, both insurance companies and their business clients become happy. But this does not seem to be the case in aviation portfolio of Nepali insurance companies. &nbsp;Although aviation insurance is a high profile business in Nepal, it happens to be one of the weakest portfolios for most insurance companies in terms of profit. The aviation insurance business looks good in terms of premium collection but there is hardly any profit.&nbsp;</span></p>
<p style="text-align: justify;">
	The reason is: the insurance companies providing aviation insurance have to pay a high amount of premium – more than 99 per cent at times - to the reinsurance companies abroad. In fact, the companies are sustaining their aviation insurance business from the commission they get for the premiums paid to the foreign reinsurers. Mahendra Shrestha, Managing Director of Himalayan General Insurance, says, “Whether it’s profit or loss, it goes to the reinsurance companies. We (local insurance companies) are just the intermediaries. And if we fail to reinsure, we cannot sustain the operation. So, we have to depend on reinsurance companies abroad. There is no other choice.”According to Shrestha, some insurance companies are paying up to 99.97 per cent of the premiums collected to the reinsurance companies. “It has been a non-profit business for even most of the reinsurers who have only two choices - walk away or keep doing business at high premium rates to recover previous losses,” he adds.&nbsp;</p>
<p style="text-align: justify;">
	A three-year data (From 2009/10- 2011/12) of Beema Samiti, too, depicts the pathetic condition of Nepali insurance companies in aviation portfolio. During this period, only a few companies could make some profits which however, is paltry (See table 1). Rameshwor Thapa, President of Airlines Operators Association of Nepal (AOAN), says, “Since this is a highly regulated and risky business, there can be loss or profit and the clients also contribute in both these factors.” There are altogether 25 insurance companies including 17 non-life insurance companies in Nepal. Among the non-life insurance companies, seven &nbsp;deal in aviation insurance (See table 2). Nepal insurance Company Ltd and Neco Insurance which were doing aviation insurance previously have pulled their hands from aviation portfolio now.</p>
<p style="text-align: justify;">
	Lack of domestic reinsurance companies and low retention capacity of Nepali insurance companies has resulted in huge amount going abroad as remittance premium. The Nepali airlines are paying around USD 8-9 million premiums to the insurers yearly. The Nepali insurance companies retain 0.5 per cent of this and send the rest to the reinsurance companies.&nbsp;</p>
<p style="text-align: justify;">
	Dip Prakash Panday, CEO of Shikhar Insurance, says, “The way our aviation business has been exposed, we cannot afford the risks. Who will bear the risk if some big loss occurs?” Panday asks, adding, “We are not sending money, we are transferring the risk. The &nbsp;companies are still in profit because the money is flowing in from the reinsurers abroad as commissions. Since they agreed to take the risk, they bear the loss as well, when it happens.” Shikhar Insurance, &nbsp;one of the major players of Nepal’s aviation insurance business earned Rs 10.5 million as reinsurance commissions last year.&nbsp;</p>
<div style="padding:10px; background:#f4f3e6;">
	<strong>Nepal’s First Aviation Insurance Summit&nbsp;</strong></div>
<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
	<img align="left" alt="Aviation Insurance Summit" height="173" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_main_feb2013(2).jpg" style="margin:0 10px 0 0;" width="300" />Held In January, an ‘Aviation Insurance Summit’ was held in Kathmandu where all the stakeholders including the reinsurance companies participated. The summit brought about a fresh wave of optimism in Nepal’s aviation insurance sector. Mahendra Shrestha, MD of Himalayan Insurance, who was also in the organizing committee says, “The Summit brought local stakeholders, including operators, regulatory bodies, insurance companies and banks as well as key players in the regional and global aviation insurance industry including underwriters and reinsurance brokers under one roof. It gave the Nepali stakeholders a global perspective on our current situation as well as access to the expertise of visiting delegates.” He further adds, “After the summit, all the delegates expressed that they found it to be a helpful introduction to the Nepal aviation insurance market and that it helped them take better decisions about supporting it.”</div>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	Airlines insure their fleet according to the value of the aircraft. The reinsurers charge different premiums depending on the type of aircraft, experience of the pilots and engineers, infrastructure, equipment, management facilities and age and the value of the aircraft. Aviation insurance coverage is categorized into the following types: Hull, War, Allied, Perils Insurance, Third Party Liability Insurance, In-flight insurance, Passenger liability insurance etc. The passengers are insured at USD 20,000 each and crew member at USD 40,000 each while the coverage of other categories like hull, war etc varies from airline to airline. According to the operators, the reinsurance market in Nepal was dependent on the India for a long time since it started in the early 1960s. In recent times however, as both the risk and the premium witnessed a constant upsurge, the market shifted to Europe. Indian Insurance companies like GIC, ICICI Lombard, United India and IFFCO-TOKIO were the main reinsurance partners of insurance companies previously, but the number of Indian reinsurers who do reinsurance business in Nepal has decreased over the past few years. &nbsp;</p>
<p style="text-align: justify;">
	<strong>High Premium</strong></p>
<p style="text-align: justify;">
	After the 9/11 terrorist attack in the US in 2001, where two planes - American Airlines Flight 11 and United Airlines Flight 175 - were crashed into the North and South Trade Towers, the aviation sector saw a sudden rise in premiums globally. After the incident, most of the reinsurers increased their premium rates worldwide while others loaded the premium according to the risk factors. Nepali airliners are charged up to 12 per cent premium now while airliners generally pay 4-6 per cent internationally. Previously, the premium rate for Nepal was up to 7 per cent. Thapa says, “We used to pay USD 30,000 as &nbsp;premium as early as six years ago. Now we have to pay USD 300,000 for the same aircraft – 10 times more than the premium rates in the past.” Currently, Tara Air and Agni Air are paying up to 12 per cent premium. However, Panday says that the premium rates differ from airline to airline. He says, “It is not that all airlines have to pay a high premium. The premiums of some airliners are as low as 1.5 per cent.”&nbsp;</p>
<p style="text-align: justify;">
	There are many conditions when the reinsurers charge high premium. They charge more if they discover that the airliners have had an air accident in the last five years or have a high frequency of making claims. Prem Bahadur Maharjan, Chaiman of Rastriya Beema Sansthan (RBS), says, “The risk factor is not within our control and that needs to be reinsured with other international insurance companies outside the country.” Decrease in the number of airlines due to the crashes and age of the aircraft lead to also high premiums. Prof Dr Fatta Bahadur KC, Chairman of Beema Samiti, says, “We had had the normal rates. But when one reinsurer increases the premium rate, others follow suit. Now the weakest airliners have to pay dearly while others too are paying high charges.”&nbsp;</p>
<p style="text-align: justify;">
	As Nepali aviation insurance is serviced by the international reinsurance market, rising premium rates is affecting the sustainability of the business. As the risk increases the market becomes limited and the airliners have no choice but to accept the high premium rates. Kewal Krishna Shrestha, CEO of Everest Insurance says, “The aviation business is running though the reinsurers are charging up to 12 per cent. But what if they charge 20-25 per cent? I don’t think the aviation industry in Nepal could bear such high premiums.” He says the environment in future could be such that even the high premium might not draw the reinsurers into confidence because of the high risk involved in the Nepali aviation and that the reinsurers could add more clauses which could affect the overall aviation business in Nepal.&nbsp;</p>
<p style="text-align: justify;">
	The reinsurers, however, insist that the premium is always determined by the risks anywhere in the world. According to Dr Pronab Sen, CEO of Nepal operation of National Insurance Company, the government-owned insurance company of India, the premium is based on the past losses. He says, “If you see the statistics, almost every year there is a crash and sometimes, there are 2 crashes in Nepal. And the rate of premium is governed by the reinsurance market. Because of the air accidents, some of the reinsurers were hesitant to do business in Nepal.” Sen adds, “We have our own retention limit. Depending on our financial strength, we retain a very small portion of the risk and reinsure the rest with other reinsurance companies. This is a worldwide practice in the insurance business. It depends on portfolio and risks. Sometime we retain 20 to 80 per cent- sometimes 90- depending on the risks.” Doug Horne, Marketing and Business Development Manager at Airclaims- A UK-based leading reinsurance company, shares a similar experience. He says, “The present level of risk is too high but there are enough insurers willing to support the market, albeit currently at a higher cost than in some other places.”&nbsp;</p>
<div>
	<img alt="Aviation Insurance Business" height="298" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_main_feb2013(3).jpg" width="550" /></div>
<div>
	<div>
		<strong>The Risky Rural</strong></div>
	<div>
		 </div>
	<div style="text-align: justify;">
		The airlines which fly mostly in the hilly region are among the high premium paying ones. On the trunk routes, the premium is only around 3-4 per cent and in the case of STOL (Short Take Off and Landing) runways, the premium rate varies from a minimum 3 to a maximum 12 per cent. Due to the risk in rural areas, the reinsurers load more premiums on them. According to the operators, the aviation insurance started becoming a loss-making business for reinsurers since 2009. There have been eight aviation crashes, killing 114 people in the past six years. Almost all these accidents took place in the hilly region. Of them, six deadly accidents occurred in 2011 and 2012 alone, excluding four helicopter crashes of which a couple were fatal. Being a mountainous country, the weather, terrain and the high altitude in the hilly region are the major challenges for the aviation sector. Poorly managed and small airfields, unpaved runways and lack of manpower to co-ordinate pilots in these areas are considered the reasons behind the air crashes. An aviation expert, requesting anonymity, says, “We need pilots who are well trained and have a sound understanding of weather pattern, especially clouds.”&nbsp;</div>
	<div style="text-align: justify;">
		The emergence of private airliners in domestic air transport started in 1992 when Nepal adopted a liberal aviation policy. And in 2002, expansion of the International Terminal Building at Tribhuwan International Airport (TIA) and the construction of a new Air Cargo Complex made it convenient for the international airliners to operate in Nepal. This increased the flow of international tourists in Nepal. Increased tourist arrivals, in turn, have led to a growth in the aviation business and aviation insurance business too. This is why the aviation insurance business has grown over &nbsp;the past decade. There are 10 fixed-wing airplane operators and five helicopter operators in Nepal at present. The Civil Aviation Report 2011-2012 also depicts a steady growth in the aviation sector with increasing flight movement.&nbsp;</div>
	<div style="text-align: justify;">
		There are altogether 54 airports in Nepal. Among them, 34 are operational at present. Among the running airports, eight are on the trunk routes- while the rest are in the remote areas. Thapa says, “Trunk route operators have fewer problems in comparison to the STOL route operators mainly because of the high hills and high altitude. There have been many instances of chopper accidents on the STOL routes.” Airports in Pokhara, Biratnagar, Janakpur, Nepalgunj, Bhairahawa, Kathamandu, Dhangadi and Chandragadhi are on the trunk route. The domestic aircraft which fly in trunk route have a minimum seat capacity of 15 and a maximum of 72 while the planes in STOL routes have minimum seat capacity of 9. &nbsp;Big aircraft fly on the trunk routes while the small ones &nbsp;are considered best for the hilly region. Suresh Acharya, Joint Secretary at Ministry of Tourism and Civil Aviation (MOTCA) says, “There is a high risk on the STOL route especially for twin-otters. There is an urgency to enhance the capacity of the pilots who fly on the STOL routes. ”</div>
</div>
<div>
	<div style="text-align: justify;">
		 </div>
	<div style="text-align: justify;">
		<strong>The aviation insurance cover</strong></div>
	<ul>
		<li style="text-align: justify;">
			Hull All Risk (Loss or Damage to the Aircraft)</li>
		<li style="text-align: justify;">
			Hull War</li>
		<li style="text-align: justify;">
			Passenger and Cargo Legal Liability</li>
		<li style="text-align: justify;">
			Crew Personal Accident</li>
		<li style="text-align: justify;">
			Pilots Loss of License</li>
		<li style="text-align: justify;">
			Third Party Liability</li>
	</ul>
	<div>
		<div style="text-align: justify;">
			<strong>Bad Image</strong></div>
		<div style="text-align: justify;">
			 </div>
		<div style="text-align: justify;">
			The frequency of accidents has created fear in the reinsurers’ minds, pushing Nepal into a ‘risk zone’. These accidents could have negative impact on the country’s tourism if the casualties included many foreigners. Nepali aviation sector had gone through similar hard times in the past too. Ten years ago when Maoist combatants set ablaze Fishtail Air’s helicopter in western Nepal, domestic airliners got notification from the reinsurance companies abroad that they won’t compensate the losses in case of any terrorist attack. &nbsp;Panday says, “Fear is a very dangerous thing. Our terrains are difficult, which has sent a wrong perception. Similarly, loss is also a perception and can be changed. All we need is 3 to 4 years of good loss ratio.”</div>
		<div style="text-align: justify;">
			The domestic airlines are often accused of poor maintenance of their airplanes and the pilots of not following the standard operation procedures. Similarly, it is said that there is often a lack of co-ordination between the&nbsp;captain and co-pilots. Acharya says, “According to our findings, human factor is responsible for 80- 85 per cent accidents. The remaining 15 per cent accidents are caused by failure of machine, bad weather etc. It seems that the pilots are not very efficient at taking the right decision in time of emergency or they do not make the maximum use of the cock-pit. Lack of co-ordination between pilots and co-pilots and no guidance from the ground people when the plane is flying is common.”</div>
	</div>
</div>
<div style="text-align: justify;">
	<img alt="Income and Expences" height="216" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/cover_story_main_feb2013(4).jpg" width="579" /></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<div style="">
		Lack of consultation between the government and insurance authorities for resolving the key issues of the aviation sector has made the aviation business worse. Acharya says, “The government is unaware about the kind of image the reinsurance companies are making of Nepal. They should have believed the government’s aviation report.” He further adds, “We need to develop that kind of mechanism. We are ready to help whenever they need any support from the government. All we need to do is build that kind of mechanism where the government as well as the insurance companies could sort out the problems together.”&nbsp;</div>
	<div style="">
		The use of ‘old’ aircraft by some domestic airlines has only added to create a negative image of the Nepali aviation, though people in the industry and experts do not call it a problem. According to a Nepali scholar who has a Master’s degree in Aeronautical Engineering from Poland, not following the standard operation procedures by the aviation operators is the major drawback in Nepal’s aviation. He says, “It does not matter whether the plane is old or new; what matters is its scheduled as well as need-based maintenance.” Lack of distance measuring equipment (DME) at airports is another shortcoming for the country’s aviation sector. He adds, “Towers are more helpful in tracking the aircraft in the right way. However, most of our airports rely on windsocks &nbsp;to indicate wind direction and the relative wind speed. This is risky. Sometimes, there is no one in &nbsp;the towers at the airports to coordinate with the flying pilots.”&nbsp;</div>
	<div style="">
		An aircraft is generally considered safe until the deadline given by its manufacturer. There is a manual for every air plane and manual for flying hours including number of flights a day. The Beema Samiti issues, renews, dismisses the licenses of insurance companies, insurance surveyors and insurance agents. It has also been “working for the development, management and regulation of the insurance business in the country.” The BS 2067 Report of Beema Samiti has also recognized scarcity of skilled manpower, unhealthy competition among insurance companies and lack of reinsurance companies within the country as the major problems of the aviation insurance business. However, the Beema Samiti has not been able to address these problems properly. Maharjan says, “There has to be a strict monitoring mechanism for air traffic discipline and safety education to the people involved in the aviation business. Pilots should also be alerted against taking any sort of risks. Aviation safety is not related to money only; it’s about lives of people.”</div>
	<div>
		 </div>
</div>
<div style="padding:10px; background:#f4f3e6;">
	<strong>Utilizing Civil Aviation Academy&nbsp;</strong></div>
<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
	If given due importance, the Civil Aviation Academy (CAA), the only training center for aviation related training in Nepal, could be beneficial to the whole aviation industry. CAA conducts basic, refresher, induction and recurrent trainings related to Air Traffic Control, Aviation Security, Fire fighting and rescue, CNS and others based on quality curriculum. Though it is the only state’s approved aviation training organization (ATO) in Nepal, the private sectors have failed to utilize them properly. Mahendra S. Rawal, Chief of CAA says, “Though we are also in the developing phase, we can still work together to develop expertise. Together we can either develop the infrastructure here or bring expertise from outside the country.” The CAA runs courses on Air Traffic Services (ATS), Engineering, Aviation Security, Aerodrome rescue and fire fighting among other five dozen courses ranging from knowledge based to competency based training.</div>
<p>
	 </p>
<p>
	<strong>The Way Forward</strong></p>
<p style="text-align: justify;">
	Mergers among insurance companies to increase capital base is regarded as one of the possibilities for enabling the insurance companies financially. The insurance companies are also trying to increase their retention capacity from 0.5 to 1 per cent which has spread positive message to their clients. There have been many progresses in Nepal’s aviation sector. From the month of Kartik, this year; Tourism Ministry has revised the provision of compulsory payment of 60 million dollar in third party liability to airliners during the registration time. CAAN has subsidized up to 8 million dollar to the airlines that fly to rural areas. An agreement was signed between the Government and CAAN for Capacity Enhancement Project of TIA under ADB loan in 2010. A safety audit was carried out in Nepal from 5 to 14 May 2009 according to the Universal Safety Oversight Audit Program (USOAP) as provisioned by ICAO and the Corrective Action Plan based on the flight safety. The findings of the audit have already been submitted to ICAO. Furthermore, a provision has been made to perform all activities in congruence with the concept of ICAO USOAP Audit Continuous Monitoring Approach (CMA).&nbsp;</p>
<p style="text-align: justify;">
	Tri Ratna Manandhar, Director General, CAAN says,” We have followed international standards in safety measures and the maintenance of aircraft is carried out as per the European standards- EASA Part-145. Buddha and Yeti airlines have already started it and others are in the process.” According to him an ICAO team is visiting Nepal in July 2013 for audit. He says, “After this ICAO audit, we will be able to prove that we have made progress in aviation management including the safety.” CAAN has been conducting strict safety programmes for safety and maintenance for the past six months. Likewise, the board of CAAN approved Air Operator’s Requirement (AOCR) in November 2012 which clearly mentions the requirements to get Air Operator Certificate. It has also managed the maintenance of aircrafts by AMT (Aircraft maintenance technician) from UK from this year. It is also planning to build an isolated parking for the planes having bomb threats and hijacking etc next year.&nbsp;</p>
<p style="text-align: justify;">
	No compromise &nbsp;at all with safety could be the best way to lower the high premium in Nepal’s aviation insurance, say the experts. The airline operators, too, are more aware about maintaining the safety standards today than in the past. AOAN has been organizing many seminars on aviation and programmes to help lower the premium by assuring safety. Thapa says, “There have been programmes organized aimed at enhancing the safety measures and we are very much confident that we would be able to enhance the safety measures.” He adds that airline operators are optimistic about reducing the risks. “A plane using only the Visual Flight Regulation (VFR) should not be allowed to go through the clouds. Pilots too should stop flying in pressure. If we follow all the safety measures definitely the risks have to go down. Civil Aviation Authority of Nepal (CAAN) should monitor these flights and instruct the airlines accordingly,” He says.&nbsp;</p>
<p style="text-align: justify;">
	Experts also feel the need of &nbsp;terrain awareness and warning systems (TAWS) developed by manufacturers and safety regulators to prevent accidents from Controlled Flight into Terrain (CFIT). CFIT is among the leading causes of airplane accidents involving the loss of life worldwide. The Wikipedia describes it as an accident in which an airworthy (fit to fly) aircraft, under pilot control, is unintentionally flown into the ground, a mountain, water, or an obstacle. With improvements in infrastructure, training and operations, reinsurers are also optimistic in reducing the cost of insurance to a reasonable level. Horne from Airclams says, “The prospects for aviation insurance business in Nepal are bright. There is a capable and knowledgeable local market which has good relationships with the global insurance community.” He adds, “What is perceived as the current high cost of insurance can and should be reduced for operators who demonstrate a good safety culture and record, adopt a Safety Management Programme that is working well and can prove that it is making a difference.”</p>
<p style="text-align: justify;">
	While the formation of a pool of all the insurance companies to collectively handle the claims in aviation insurance is in the initial phase, the government is planning to convert the insurance pool into a reinsurance company under Beema Samiti. &nbsp;Ramesh Lamsal, Executive Director of Insurance Pool says, “We have not prepared the business plan about aviation insurance yet. But if the aviation segment is included it will support the aviation business in Nepal.” Government authorities say that if the main players in the aviation business in Nepal- the airliners and insurance companies prepare appropriate strategy for the safety measures they are ready to co-operate insurance companies and protect them from those risks. Dr. KC says, “There should be positive attitude towards the formation of possible reinsurance company in Nepal after calculating the advantages and disadvantages on the business. The foremost thing is that it should be for the stability of the aviation business.”</p>',
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			'description' => 'The insurance companies providing aviation insurance have to pay a high amount of premium – more than 99 per cent at times - to the reinsurance companies abroad. In fact, the companies are sustaining their aviation insurance business from the commission they get for the premiums paid to the foreign reinsurers.',
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		'Article' => array(
			'id' => '883',
			'article_category_id' => '46',
			'title' => 'Investment Is Not A Big Thing These Days',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<img align="left" alt="Binod Chaudhary" height="288" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/interview_binod_feb2013.jpg" style="margin: 0 10px 10px 0;" width="350" />Binod Chaudhary is the President of Chaudhary Group (CG), one of the leading business houses of Nepal. He is also the Chairman Emeritus of Confederation of Nepalese Industries (CNI). A prominent industrialist, Chaudhary has recently published an autobiography, ‘Atmakatha’. This book tells the successful story of how Wai Wai noodles, initially imported from Thailand, which later took such a big market share. “Currently, 1 billion packets of Wai Wai noodles are produced annually which accounts for 1% of the total noodle production of the world”, claims Chaudhary. In an interview with New Business Age, Chaudhary talks about the CG’s successful ventures and the group’s plans among other issues.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Excerpts:</strong></p>
<p>
	<strong style="text-align: justify;">You seem to be saying and doing whatever the Industrialist Dhirubhai Ambani of India used to say and do. Are you influenced by him?</strong></p>
<p style="text-align: justify;">
	I always say that I am influenced by two people in India - J.R.D. Tata and Dhirubhai Ambani. The status given to the Tata Group by J.R.D. Tata is unmatched by any other business house in the world. But the industrial revolution in India was brought by Dhirubhai Ambani. Hence, I am his big fan.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You happen to praise the former leader of South Korea, Park Chung-Hee as well. Do you believe that the government should praise the industrialists?</strong></p>
<p style="text-align: justify;">
	Park Chung-Hee has given birth to many multi-national companies during his regime. That is why the multinational companies of South Korea are successful globally. I am a 100% supporter of that. I truly believe that in a country like Nepal, private companies cannot develop without support from the government. In countries like Japan and Korea, the government has pushed the private companies to grow. I believe that the same should apply in our case as well.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Why did you change the decade long established Chaudhary Group into CG?</strong></p>
<p style="text-align: justify;">
	This is just a branding. The word CG is easy to remember for people but Chaudhary Group is not. You have to twist your tongue a little bit. Actually, the brand “Chaudhary’s” could not be well established. There used to be a logo of Chaudhary’s in our every product. But, that could never be the talk of the town. Today, no one says Chaudhary’s. Everyone likes to say CG.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You have set up several Noodle producing plants throughout India. Similarly, you have invested in luxury resorts in cooperation with Taj Hotel. How much have you invested like this within Nepal and abroad?</strong></p>
<p style="text-align: justify;">
	We also do not have an exact account of that. We have many companies that are being run by different individuals. Again the criterion to judge a company has become different these days. Today, a company is judged on basis of its brand, marketability etc. According to that, the co-investors invest. Today, the Tata family owns only 3% of the Tata Group. But, they are buying several companies of millions of dollars in the name of Tata industries and are trading worldwide. That’s why investment is not a big thing these days. I constantly repeat that a multinational company cannot be setup by just collecting money from Nepal. There is not enough capital to do that. Furthermore, there is a possibility of development within and without. If you have the capability of industrialization, capital will follow you. Today, we are producing Wai Wai in more than 3 countries. In those countries, there are several investors who are interested to invest in Wai Wai. We are working in hotels in different nations, in our own brand and in others’ brands. We have an option of choosing whom to mingle with. We have already earned that trust of the investors in the international market. That is why investment value and volume by an individual company or industrialist is not the key factor here.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The main question is when we can say with certainty that Binod Chaudhary is an internationally recognized billionaire.</strong></p>
<p style="text-align: justify;">
	Binod Chaudhary is only a face. If someday CG group comes to be recognized as Nepal’s billionaire company, it is not only my pride but yours too. And I pray that the day comes soon.&nbsp;</p>
<p style="text-align: justify;">
	<strong>For some time past, you have been concentrating more on imports, rather than on two or four flagship industries like Wai Wai.&nbsp;</strong></p>
<p style="text-align: justify;">
	During the last twenty years, the nation has faced insurgency. Today also it exists in some form or the other. The only company that developed both horizontally and vertically during this period is CG. If CG owned only 3 companies back then, today it owns 14. If 500 people worked back then, today 3000 people do. &nbsp;If CG vertically owned 6 business houses back then, today the number is 10. The cement company has also been added to them. In fact, we are building the nation’s largest cement company. We are also trying to set up hydro power plants with over 240 MW capacity each. We have entered the ayurveda sector. &nbsp;In terms of education, we have established 5 institutions where over 4000 students are studying. We are going to invest Rs. 1 billion in education. Then an additional 10000 students will have the opportunity to study annually. Service industry is also being looked at closely by us. If you look at this sector by turning the pages of Aarthik Abhiyan National Daily, you can find the answer to your question over there itself.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You have recently left the chairmanship of CNI. Why was CNI unable to do anything much impactful during those years of your leadership?</strong></p>
<p style="text-align: justify;">
	I am doing well in CNI. Recently, a new leadership has arrived. We are also visiting districts. However, we are not in favour of opening branches in all the 75 districts. CNI mainly represents the industrial sector of the nation. Where there are no industries, it is not necessary to open the branches but we are frequently visiting the districts where there are industries.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Some time ago, you said that Nepal Airlines Corporation should be operated under PPP. Are you interested in investing in the corporation as well?</strong></p>
<p style="text-align: justify;">
	I have lost that interest now. I do not know if any private investor can show a positive route to Nepal Airlines Corporation. It is difficult to bring a change in such a corrupt system.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Nepalis cannot legally invest in the foreign markets. That would be great if possible. You got involved in a political party and also reached the constituent assembly. But, you could not do anything substantial in this regard.</strong></p>
<p style="text-align: justify;">
	Everybody agrees in this issue. Nepal Rastra Bank has been introducing several fiscal policies for that from time to time. But no proposal has yet been passed in the assembly. That is why it is not a law yet. Nepalis have opened restaurants and hotels in US and Japan. The important thing is that Nepalis are investing. When Nepalis could not invest and only the non residents could, Binod Chaudhary had to make Barun and Rahul Chaudhary, NRNs. Everyone should appreciate it. Please do not consider it illegal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>You are such a successful industrialist. But, CG has not been able to make returns to the society accordingly. Except for some minor contributions, no significant contributions in CSR (Corporate Social Responsibility) can be seen. Why?</strong></p>
<p style="text-align: justify;">
	We believe that we have a major involvement in the social sector. Our brand line is ‘Touching life everyday’, which means we do touch lives every day. CSR also has different ways. Donation is also one of them. The other is to help the society during desperate times. You can consider Norvic hospital and educational institutes for this case. Without these initiatives people would have been deprived of quality education and health. It’s a part of CG to cooperate with the society. Some receive concessions and some receive scholarships. You take from those who can give and you give to those who can’t.&nbsp;</p>
<p style="text-align: justify;">
	Recently, we have agreed to set up a social business fund in cooperation with Noble prize winner Muhammad Yunus’s Muhammad Yunus Center. That will help the Nepalis who want to set up a business but do not have enough resources to do exactly that. We are always committed to shake hands with the society and move forward.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What are your suggestions to the Nepalis who want to start up new businesses in Nepal?</strong></p>
<p style="text-align: justify;">
	New businesses will have to face a lot of difficulties. I strongly suggest not losing hope. It always takes time to see the results. And, I am very hopeful for everyone.&nbsp;</p>',
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			'id' => '876',
			'article_category_id' => '41',
			'title' => 'Oil And Gas In Nepal: Foreign Investors’ Dilemma',
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			'content' => '<p>
	<strong>By Abhimanyu Chhetri</strong></p>
<p>
	<img alt="Oil and Gas, Sectoral February 2013" height="386" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_feb2013.jpg" width="570" /></p>
<p style="text-align: justify;">
	<span style="text-align: justify;">In the time it takes most people to read this sentence, the world will have used up about 8,000 barrels of oil (1 million liters); at 1000 barrels per second. The price of oil and gas is ever rising. International Oil companies are making huge investments around the world in search of new reservoirs. It might be surprising for some to know that Nepal has reserves of both oil and gas and foreign companies are eyeing those reserves. As of July 2012, the 10 blocks designated by the Department of Mines and Geology(DMG) for oil and gas exploration have been leased out to 4 different Oil giants. &nbsp;&nbsp;</span></p>
<p style="text-align: justify;">
	In the summer of 2012, there was a huge outcry about two international oil giants – Texana Resources Company of Houston, USA and Cairn Energy of UK leaving Nepal citing a “force majeure”. Force Majeure can free both parties from liability or obligation in case of an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or an event described by the legal term act of God (such as hurricane, flooding, earthquake, volcanic eruption, etc.). However, this allows the parties to only suspend their work but not cancel the contract.&nbsp;</p>
<p style="text-align: justify;">
	In most countries oil companies are being forced out. However, in Nepal the two companies packed up and left. The two companies said they were abandoning exploration work in Nepal due to bureaucratic hurdles and lack of cooperation from the government. Both have already spent millions of dollars in Nepal on preliminary surveys and were all set for a ‘seismic operation,’ which determines whether the surveyed areas contain commercially viable quantities of oil. To date, Texana has spent US$3 million and Cairn US$2 - 10 million in the country. &nbsp;The two companies were required to pay an annual fee of US$ 50,000 per ‘block’ to the Nepal government. They also have to provide bank guarantees before starting the geological survey works.</p>
<p style="text-align: justify;">
	Rajendra Prasad Khanal, Head of the Petroleum Exploration Promotion Project (PEPP) under DMG, says that these companies entered Nepal during Maoist Insurgency. Texana won the bid in 1998 for 2 blocks and Cairn Energy got the license for 5 out of remaining 8 blocks in 2004. He says, “It is understandable that the companies could not work before due to the insurgency going on during those years, but now the situation has changed. Nepal is a peaceful developing country and there is no obstacle for them to carry out their investigations.”</p>
<p style="text-align: justify;">
	In fact, the team at PEPP is repeatedly requesting them to complete their work in time as per the agreement. Texana has 13 months left and Cairn energy has 7 months left of their contract period. Mr. Khanal and his team are creating a momentum to complete the necessary pre investigations and hopefully extract the crude oil in near future. &nbsp;</p>
<div style="padding:10px; background:#f4f3e6;margin-bottom:10px;">
	<div style="padding:10px; background:#f4f3e6;">
		<strong>Sharing the country’s prospective product with the foreign companies&nbsp;</strong></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		The Petroleum Regulation 2041 (1985) has made a provision of “Model Petroleum Agreement” which includes all the items to be covered in the petroleum operations. This model agreement is in the form of Production Sharing Contract with provision of Royalty and Income Tax. This is also influenced by the amount of crude reserves that can be extracted. The companies will have to pay a royalty of 12.5% to the Government of Nepal and a 30% income tax after sales of the optimal amount of extraction. An obligation to drill a well is not mandatory in the initial exploration period of 4 years.</div>
</div>
<p style="text-align: justify;">
	Recently, Nepal has accorded high priority to encourage foreign investment in the country. With economic liberalization policy of the government and attractive fiscal terms available, Nepal is committed for full cooperation to international companies in facilitating petroleum exploration in Nepal.</p>
<p style="text-align: justify;">
	The DOMG and PEPP have divided the Tarai and the Siwalik hills into 10 ‘exploration blocks’ of 5,000 sq km each and is trying to sell the exploration license to the International oil exploration companies . Texana won the bid for Blocks 3 (Banke) and 5 (Chitwan) and entered into an agreement with the government in December 1998. In 2004, the British company Cairn Energy received a license to explore five other blocks—Block 1 (Dhangadhi), Block 2 (Karnali), Block 4 (Lumbini), Block 6 (Birgunj) and Block 7 (Malangawa).&nbsp;</p>
<p style="text-align: justify;">
	&nbsp;As of July 2012, when the two companies left the country citing “Force Majeure”, the DMG put the remaining blocks up for bid. Currently, the Block 8(Janakpur), Block 9(Rajbiraj) is owned by Emirates Associated Business Group (EABG) of UAE and the Block 10(Biratnagar) is owned by BBB Champions, which is another Houston based Oil Company. Both have bought a 4 year license to carry out exploration activities in these areas.&nbsp;</p>
<p style="text-align: justify;">
	Mr. Khanal thinks that this is only the first step and a considerable amount of work is still to be done. The team of geologists at the DMG and PEPP are constantly providing the geological data to the foreign companies that can be indicators to the presence of oil in the region. Along with this, oil and gas have been found in India, Pakistan and Bangladesh in similar geological setting as that of the exploration blocks in Nepal. This has also further encouraged Mr. Khanal’s team to find the hidden reserves. According to Khanal, more companies are showing interest to bid for the license. The PEPP and DMG are involved in collecting more geological data as to attract more companies and facilitate the process of oil extraction for commercial use.</p>
<div style="text-align: justify;">
	<img align="right" alt="Oil and Gas in Nepal, Sectoral February 2013" height="402" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_feb2013(2).jpg" style="margin:0 0 0 10px;" width="300" />
	<div style="">
		There is an urgency to extract these non renewable resources. Geologically, oil is formed when the dead burials mature under high temperature and pressure. After a certain period, the oil moves from the oil window to the gas window. This indicates that the reserves underground have matured for extraction a long time ago and the reserves might be lost if not extracted in time. A number of oil and natural gas seeps have been recoded in a stretch of 14km in Padukasthan, Sirsethan and Navisthan area in Dailekh and only gas seeps in Muktinath in Mustang. Methane gas deposit in Kathmandu Valley is known since long time. Feasibility study has confirmed that this gas can be used for industrial and household purpose and the reserve is sufficient to supply gas to 21,000 families for about 30 years. During preliminary study, 23 geothermal hot springs have been identified nationwide. Most of them are found to be associated with Main Central Thrust (MCT) and confined to the river banks. The temperature of the hot spring water ranges from 40o to 115oC. It can be utilized for heating, drying fruits, hot water bath to heal skin disease. According to Krishna Prasad Kafle, a Geologist retired from DMG, considerable amount of investments should be made in exploring these resources.&nbsp;</div>
	<div style="">
		 </div>
	<div style="">
		The only exploration of theses precious natural resources is done in Kathmandu Valley, where Peat and Lignite is mined and used mainly in firing brick kilns. Only one well, the Shell er al Biratnagar 1, with a total depth of 3,520 m has been drilled in Nepal. In 1986, Shell and Triton bought Block no. 10 in Eastern Nepal for exploration but abandoned its project soon when it didn’t strike any oil. People associated with the project argue that Shell just didn’t drill deep enough. The situation was such that the drilling machines had to be imported from India and, due to certain trade restrictions, daily operation charges went as high as Rs 35,000 per day in the then price situation. Today, the daily operation cost is in the range of thousands of dollars. But, if considerable amount of oil is found in Nepal, it will be a boon for the Nepalese economy.</div>
	<div style="">
		 </div>
	<div style="">
		 </div>
</div>
<div style="padding:10px; background:#f4f3e6;">
	<strong>A case of Norway&nbsp;</strong></div>
<div style="padding:0 10px; background:#f4f3e6;">
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		Before 1960, though an independent country Norway was constantly exploited by the rich and powerful UK and Denmark. During World War I, Norway was a neutral country. In reality, however, Norway had been pressured by the United Kingdom to hand over increasingly large parts of its massive merchant fleet to the UK at low rates, as well as to join the trade blockade against Germany. At the end of the 1950s, very few people believed that the Norwegian continental shelf concealed a wealth of oil and gas. Then, Ekofisk was discovered in 1969 and the Norwegian oil adventure started in earnest. Production from the field started on 15 June 1971 and during the following years, several large discoveries were made. In the 1970s, the exploration activity was concentrated in the North Sea, but the shelf was also gradually opened northwards. This led to world-class discoveries and the production from the Norwegian continental shelf has been dominated by these large fields that were given names such as Ekofisk, Statfjord, Oseberg, Gullfaks and Troll. These fields have been and still are very important for the economic development of Norway. In the last 40 years, Norway has developed an oil and gas industry and this in-turn has resulted in unique national economic growth and welfare improvements. Today, Norway ranks as the second wealthiest country in the world in monetary value, with the largest capital reserve per capita of any nation. The standard of living in Norway is among the highest in the world. It used up its oil and gas reserves to gain this status.</div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		<img align="left" alt="" height="207" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/sectoral_norway_feb2013(3)(1).jpg" style="margin:0 10px 0 0;" width="300" /></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		Petroleum exploration activities carried out on the continental shelves of Norway.</div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: justify; background-position: initial initial; background-repeat: initial initial;">
		<span style="font-size:11px;"><br />
		</span></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: right;">
		<span style="font-size: 11px;"><br />
		</span></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: right;">
		<span style="font-size: 11px;"><br />
		</span></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230); text-align: right;">
		<span style="font-size: 11px;"><br />
		</span></div>
	<div style="padding: 10px; background-color: rgb(244, 243, 230);">
		<span style="font-size: 11px;">Source: upstreamonline.com</span></div>
</div>
<p>
	 </p>',
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			'title' => 'A Quest For Bliss',
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			'content' => '<p style="text-align: justify;">
	<img align="right" alt="Trishakti Joshi" height="338" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/personality_trisakti_feb2013.jpg" style="margin: 0px 0px 0px 10px;" width="318" /><strong>By Gaurav Aryal</strong></p>
<p style="text-align: justify;">
	Trishakti Joshi, CEO of Elite Networks was raised at a time when sons in the family were pressed to be either a doctor or an engineer. Being a part of the family with a daughter and two sons, Joshi was set to be a doctor as his elder brother had chosen the path to engineering. But the life of his had something else in its details.</p>
<p style="text-align: justify;">
	He was convinced and determined to be a doctor in his schooldays. So, he also took up Biology as one of the optional subjects in school. But as soon as he came out of his school passing his School Leaving Certificate (SLC), he watched lives of doctors from close. Then the fire in him that wanted to be a medical doctor extinguished. Joshi explains, “I was always a kind of person who wants and tries to do something new. I did not find that profession interesting. New experiments and trying out new things were missing out there. Though there is scope for research and development, it is not simply possible in the initial phase.”</p>
<p style="text-align: justify;">
	<strong>The Chosen Dream</strong></p>
<p style="text-align: justify;">
	Deciding to quit the doctoral profession he thought of shifting to architectural engineering. But unfortunately, only Intermediate in Engineering was taught in Nepal. So, one had to go abroad to complete the further studies. So, he joined ISC in Patan Campus but entering the Physics faculty was not so easy for a boy who came through a biology background. &nbsp;He managed through it and joined BSc in Trichandra College. Though he was keen to go to the US for further studies, he recalls his father, who had lived in the US for a long time, did not want Joshi to go there for his undergraduate studies.</p>
<p style="text-align: justify;">
	In the meantime the wave of new technology and especially the computers had struck Nepal. Along with his studies, he also joined MIPS at Bagbazar and learned the ABCD of computers there. The curiosity for the technology and a strong background in Science made him land as a job holder in the Mercantile Office Systems. There he used to repair computers. He worked for five years for Mercantile. Having worked for a long time with machines, he then craved working with people.</p>
<p style="text-align: justify;">
	With a dream to do something new and more satisfying he came up with an idea to offer computer networking services to offices. It was already an old thing in the international market but it was pretty new for Nepal. Then he established Elite Networks, partnering with a friend, the company which he is currently looking after.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Making Leaps</strong></p>
<p style="text-align: justify;">
	Joshi cashed in on the relationship he made in his previous job to find his clients. So, the networking responsibilities of the then Grindlays Bank or today’s Standard Chartered Bank were taken up by his company in its initial days. Joshi accredits the bank for the success of his company. As of now the entire IT of the bank is managed by Elite Networks. His company worked for the American Library, looked after IT aspects of Hillary Clinton’s Nepal visit and also sold computers.</p>
<p style="text-align: justify;">
	In the due course, his company also work abroad too. Joshi’s company took up all the responsibilities of setting up networking for UNDP’s Bhutan Office. As of now, he has been introducing and maintaining the new initiatives his company makes. Around 1996 he also initiated the project to network two offices. And Joshi claims that his company was the first in Nepal to introduce wireless networking.&nbsp;</p>
<p style="text-align: justify;">
	Joshi’s venture that began with networking business also tried out sms banking, and now concentrates more on providing complete IT solutions to its clients. It not only provides tools and technology but also provides the entire services related with it. Since 2009, he started selling Automated Teller Machine (ATM) and all the services associated with it such as installation and maintenance among others. Joshi claims that his company has over 50 per cent market share in the ATM sales and caters to around 65 banks and financial institutions. His company also installs and manages ATM lounges. Once, Joshi also provided consulting services for his clients about the IT. Apart from these, his company in partnership has established and operated a data centre at Thapathali targeting financial institutions and corporate houses.</p>
<p style="text-align: justify;">
	Elite Networks that began with two people, has now reached to a team of 60. Moving away from selling hardware, he plans to concentrate more on the complete solution packages and also venture into software development. Joshi sees a huge market prospects not only in Nepal but also globally in apps development for smart-phones and tablet computing.&nbsp;</p>
<p style="text-align: justify;">
	Had he not been in the current business, Joshi thinks he would have become either doctor or taking some job somewhere in the field of IT.&nbsp;</p>
<div style="padding:10px; background:#f4f3e6; margin-bottom:5px;">
	<p>
		<strong><span style="color: rgb(255, 0, 0); font-size: 16px;">Personal Side</span></strong></p>
	<ul>
		<li>
			Likes attending social events and professional gatherings</li>
		<li>
			Enjoys drinking without letting alcohol taking him over</li>
		<li>
			Loves cooking on weekends</li>
		<li>
			Loves using gadgets more for his works than for entertainment</li>
		<li>
			Prefers quality over brand names but gives value to brand values</li>
		<li>
			Likes photography</li>
		<li>
			Loves playing golf</li>
		<li>
			Socially active as a member of Toastmasters Club, Executive Member of CAN and Executive Member of Nepal Golf Association</li>
	</ul>
</div>
<p style="text-align: justify;">
	 </p>
<p style="text-align: justify;">
	Joshi says, “For me trying and doing new things is like an addiction. I visit abroad to understand and find out emerging technologies and identify new technologies that can be useful in Nepal.” Joshi localises those technologies to best suit the need of the Nepali market before introducing to Nepal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Working style</strong></p>
<p style="text-align: justify;">
	While making any decisions, Joshi goes after his instincts, local market knowledge and trend in the international market. Similarly, he says that he readies himself before the market readies itself while introducing any new products and services. Joshi is already ready on his part before the clearing houses are ready to be operational in Nepali market- his new target place to offer services and solutions. Joshi recalls such times when he has been ahead of time and market, and instances where he had to drop the entire idea. He exemplifies such a situation in sms banking, where other companies in the market are doing well currently.</p>
<p style="text-align: justify;">
	Every day, Joshi gets up at around 5:30 in the morning. Then, he goes to the club for exercises and fitness for one and a half hour. At around 8:30, he leaves for office and reaches there within half an hour. As he has to keep in touch with companies in Singapore, he utilises the time before his employees arrive for corresponding with those companies. “When my team arrives at office by 9:30, I am ready for them and by 10, when banks open, I am ready for clients too,” he describes. He usually ends the day at 6 pm.</p>
<p style="text-align: justify;">
	<strong>Management approach</strong></p>
<p style="text-align: justify;">
	Joshi looks after the management of his company Elite Networks while his partner Pramod Kunwar looks after all the technical aspects. He reveals that the entire accounting services have been outsourced to another company since day one.</p>
<p style="text-align: justify;">
	Joshi believes, “As easy it is to establish a company, it is equally difficult to sustain it. It may look effortless to grow but it is equally tough to maintain that growth.” &nbsp;Joshi’s company around six years ago thought of getting an ISO certificate but dropped the idea because of the lengthy documentation process. But, he slightly modified the procedures and applied all the quality measures on the functioning of the company.&nbsp;</p>
<p style="text-align: justify;">
	When it comes to the human resource management, he has not left any stone unturned to keep his employees happy and motivated. He says that performance based incentives and regular motivational packages are offered to the human resources to keep their high spirits going higher.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Defining Success</strong></p>
<p style="text-align: justify;">
	For different people, success comes at different shapes and sizes. For Joshi, it comes in the form of satisfaction and joy. He recalls his initial days when he used to be filled with joy on closing a deal. “Everything does not remain the same forever. I am constantly in search of what next. If the newness is missing, pleasure diminishes,” he explains, “More than money, I enjoy the process of making money.”</p>
<p style="text-align: justify;">
	Joshi suggests sincerity and dedication to the work is must for both satisfaction and achieving success. “You have to believe on what you do and you have to be passionate about it. When one enjoys work, money does not become the first priority and success will automatically follow. Money is its by-product,” says he.</p>
<p style="text-align: justify;">
	<strong>The Personal Space</strong></p>
<p style="text-align: justify;">
	When it comes to bridging the professional and personal life, Joshi likes them to remain at a distance. He does not mix the two. He says that unless it is an emergency, he neither takes official work to home nor receives any work related phone calls from home. Saturdays are the days when he likes spending time with his family and giving chances to his hobbies and interests. When he gets free time, he adores going little adventurous. He loves hiking, trekking, cycling and roaming around in the nature. Joshi has also recently developed new hobbies – photography and golf. He plans to give more time to his interests and his desires that were sidelined on the process of pursuing bigger professional dreams.</p>
<p style="text-align: justify;">
	It has been more than two decades since he first started working. So, he desires to give some extra time for himself reducing the working hours. “I have been thinking to minimise my working hours and give little extra time for my personal interests,” Joshi promises.</p>
<p style="text-align: justify;">
	Similarly, at the back of his mind he has been slowly making rough sketch of retirement and succession planning. He wants to groom somebody capable so that he can handover his responsibilities. However, he does not plan to completely abandon his company and profession.</p>',
			'published' => true,
			'created' => '2013-03-16',
			'modified' => '2013-03-23',
			'keywords' => '',
			'description' => 'Trishakti Joshi, CEO of Elite Networks, likes to keep himself ahead of the market which he wants to conquer with new technologies and every service that come attached to it. The believer in work, passion and dedication finds success in every satisfying moment he has found in the pursuit of his professional goals.',
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	(int) 13 => array(
		'Article' => array(
			'id' => '882',
			'article_category_id' => '48',
			'title' => 'New Financial Lexicon',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<strong>By Madan Lamsal</strong></p>
<p style="text-align: justify;">
	Without certain dedicated abbreviations, terms and jargons, no modern sector appears trendy and modern. The financial services definitely cannot fall behind in this innovative venture. What they were originated for and what exactly they have started to mean now is indeed a linguistic feast to cheer for. Some examples from a non-exhaustive glossary:&nbsp;</p>
<p style="text-align: justify;">
	<strong>Accrued Interest:</strong> An accumulated interest due in the account of the most-favoured borrower of the bank, which may never be paid.</p>
<p style="text-align: justify;">
	<strong>ACH:</strong> Association of Clever Herds, representing the corporate world created to buy time from their wives.</p>
<p style="text-align: justify;">
	<strong>AML:</strong> A new disease called Acute Myeloid Leukemia diagnosed among some businessmen caused by the flu emanating from Anti Money Laundering (AML) Act.</p>
<p style="text-align: justify;">
	<strong>Appraisal:</strong> An annual drama of awarding a crony of the management for promotion or favouring a mediocre firm at the cost of the best performer without connections.&nbsp;</p>
<p style="text-align: justify;">
	<strong>APR: </strong>A commonly used tool to make customers April Fools, previously known as Annual Percentage Rate.</p>
<p style="text-align: justify;">
	<strong>ATM:</strong> Any Time Malfunction machine to dispense money even from your own account.</p>
<p style="text-align: justify;">
	<strong>Availability Date:</strong> A choreographed schedule of senior bank officials to prove that they actually work sometime, if available for the cause of common business interests.</p>
<p style="text-align: justify;">
	<strong>Availability Policy:</strong> Bank&#39;s policy to indirectly announce its liquidity position by fixing the date when funds deposited into an account will be actually available for withdrawal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Bank Custodian:</strong> The Central bank, in case of Nepal NRB, is a specialized police custody for the bankers who remain recalcitrant to follow NRB directives issued not necessarily to maintain the safety of depositors&rsquo; assets but to prove that the central bank actually has some teeth and may bite anyone it doesn&#39;t like.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Bank:</strong> A glassed cage where you are made to feel like a pig when entered and your assets are valuated only a quarter of what they are actually worth for, and you cannot have any say at any point in time whether you deposit or borrow.</p>
<p style="text-align: justify;">
	<strong>Bankrupt:</strong> New certificate of dignity to most of the clients of most of the banks. And you can justify it by talking all day about recession.</p>
<p style="text-align: justify;">
	<strong>Bear Market:</strong> A cool alcoholic fizzy drink for the losers in the capital market, synonymous with the beer market.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Billionaire:</strong> A rare breed of individuals in Nepal who have never made their books of accounts public and never proved to have done illegal things.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Bull Market: </strong>A market place where oxen are sold and bought by the farmers right before the farming season.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Capitalism:</strong> A policy of almost every political party of Nepal that doesn&#39;t believe in anything less than accumulating capital by hook or by crook.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Collateral:</strong> A single basis of evaluating the borrower&#39;s credit-worthiness in the Nepali banking system, without which Nepali banks cannot even breathe. Things like credit records or project viabilities of the borrowers are bull sheet.</p>
<p style="text-align: justify;">
	<strong>Co-Signer:</strong> An individual who sings in the tune of the boss in the bank, also known as a co-maker.</p>
<p style="text-align: justify;">
	<strong>Deferred Payment: </strong>An act of postponing the payment for a future date which never comes; which has now become a widespread practice in the Nepali banking industry.</p>
<p style="text-align: justify;">
	<strong>Depression:</strong> A psychological phenomena reflecting the state of mind of the citizens, caused by the long run gloomy outlook of the economy.</p>
<p style="text-align: justify;">
	<strong>EBIT: </strong>Bank&#39;s earnings before irregularities and tampering.</p>
<p style="text-align: justify;">
	<strong>Electronic Banking: </strong>&nbsp; An internet or mobile-based service of the banks that allows even a non account holder to obtain account information and manage certain banking transactions through a personal computer, directly logging into the financial institution&#39;s portal.&nbsp;</p>
<p style="text-align: justify;">
	<strong>KYC:</strong> Kill Your Customer &nbsp;&nbsp;</p>
<p style="text-align: justify;">
	<strong>Mutual Fund:</strong> A mutual practice of distributing hefty loans among the CEOs of the banks in a turnkey basis so that they can invest in real estate business.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Outstanding Check:</strong> An errand boy standing outside the door of an office carrying a bank&#39;s check.</p>
<p style="text-align: justify;">
	<strong>SLR: </strong>Self-loading rifle belonging only to the central bank, used to rob the banks in the veil of statutory liquidity ratio.</p>
<p style="text-align: justify;">
	<strong>Stagflation:</strong> When it is the time for the Royal Stag, the leisure borne out of inflation-induced inaction.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Students&rsquo; Loan:</strong> Loans given to students to buy sporty bikes, so as to enable them to undertake a number of dating projects simultaneously.</p>
<div style="text-align: justify;">
	&nbsp;</div>',
			'published' => true,
			'created' => '2013-03-16',
			'modified' => '2013-10-21',
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			'description' => 'Without certain dedicated abbreviations, terms and jargons, no modern sector appears trendy and modern. The financial services definitely cannot fall behind in this innovative venture. What they were originated for and what exactly they have started to mean now is indeed a linguistic feast to cheer for.',
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	(int) 14 => array(
		'Article' => array(
			'id' => '873',
			'article_category_id' => '40',
			'title' => 'Nepali Insurance Companies Are Paying Big Premium To Re-insurance Companies',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong style="color: rgb(35, 200, 250); font-size: 16px; text-align: right;">‘Nepali insurance companies are paying big premium to re-insurance companies’</strong></p>
<p>
	<img align="right" alt="Fatta Bahadur KC, Chairman Beema Samiti" height="329" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/fatta_cover_feb2013.jpg" style="margin:0 0 0 10px;" width="250" /></p>
<address style="text-align: right;">
	<strong>Prof Dr Fatta Bahadur KC</strong></address>
<address style="text-align: right;">
	<strong>Chairman</strong></address>
<address style="text-align: right;">
	<strong>Beema Samiti (The Nepali regulator of Insurance Sector)</strong></address>
<p>
	 </p>
<p>
	 </p>
<p style="text-align: justify;">
	<strong>What is the size of the aviation insurance market in Nepal?</strong></p>
<p style="text-align: justify;">
	Aviation insurance is one of the important portfolios in the insurance sector. So far as the size of the aviation insurance is concerned, it has been increasing every year. There are altogether 17 non-life insurance companies registered. But only seven of them are into the aviation insurance business. The annual premium collection from aviation insurance in Nepal is about Rs 3 billion.&nbsp;</p>
<p style="text-align: justify;">
	<strong>It is said that some insurance companies are trying to form a pool to handle the aviation insurance claims collectively. What is the latest progress in this regard?</strong></p>
<p style="text-align: justify;">
	I, too, have heard that some insurance companies are trying to tie &nbsp;up to form such a pool. But this is yet to get a concrete shape, as far as I know. I think the main objective behind forming such a pool is to reduce insurance risks in the aviation sector. We hope the pool will come into operation in the near future.&nbsp;</p>
<p style="text-align: justify;">
	<strong>What future do you see for the aviation insurance business in Nepal?</strong></p>
<p style="text-align: justify;">
	The future of aviation insurance business is bright. As the government has already adopted a liberal economic policy, many new airliners have entered Nepal. Aviation insurance as a business has grown in Nepal with the growth in the domestic aviation sector. &nbsp;Air travel has become convenient and affordable for many Nepalis today. This has ultimately helped the aviation insurance business grow in the country.&nbsp;</p>
<p style="text-align: justify;">
	<strong>Almost whatever the insurance companies earn from the aviation segment goes to the reinsurance companies abroad. Some are even said to be making losses in the aviation segment. It is said that the companies know that they are not going to make profits from the aviation segment. But they do aviation insurance just to show high amount of premium collections. What do you say?</strong></p>
<p style="text-align: justify;">
	It is obvious. Though, insurance companies should have retention capacities to bear the risks by themselves, most of them lack this. This is one of the reasons why they transfer their risks to the re-insurance companies. Consequently, Nepali insurance companies have to pay a high volume of premium to them. The margin between the premium collected from the airlines companies and the premium paid to the re-insurers is very small. It shows that they are not able to save even the cost to transfer their risks. They need to transfer funds to reinsurance companies. It is a very serious problem.&nbsp;</p>
<p style="text-align: justify;">
	<strong>How can we lower the high insurance premium?</strong></p>
<p style="text-align: justify;">
	First of all, the airlines should try to be safe from different risks. Other stakeholders like CAAN should also maintain the runways properly and other technical aspects, information dissemination practices etc. The pilots, too, should be well-trained. All other stakeholders in the aviation sector should take this matter seriously, work on it together and make careful collective efforts to avoid risks.</p>
<p style="text-align: justify;">
	<strong>Aviation insurance premium in Nepal is said to be among the highest in the world? Why is it so high?</strong></p>
<p style="text-align: justify;">
	Yes it is true. Since the premium is always determined by risks; a high risk ultimately draws a higher premium. This risk is mainly associated with aircraft accidents; the more the accident, the more the risks. We have been trying to reduce the risks in this sector which is known as mitigation of the risks.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The annual claims payout in the aviation sector has been constantly rising. Some people say this could further increase the already significantly high aviation insurance premium. How are we going to address this problem?</strong></p>
<p style="text-align: justify;">
	It is a compulsion for the aviation insurance business in Nepal. Generally, if the premium is high, the practice of insurance is low but in aviation insurance, if the premium is high you need to reinsure with other big companies because of the risk factor. You need to find reliable reinsurers, pay premium and transfer your risks to them. There is a direct and positive relation between the increasing rate of premium and the business of aviation insurance. However, if all these measures are properly adopted then the premium rate will be low.&nbsp;</p>
<p style="text-align: justify;">
	<strong>There are various types of aviation insurance policies in the world. Are all of them available in Nepal?</strong></p>
<p style="text-align: justify;">
	We have only few aviation policies which basically cover the aircraft, crew-members and passengers. It also covers the sky, and if both the parties agree, grounded risks are also included in the aviation insurance. Generally, an insurance policy depends on the requirement of the policy holder. Therefore, the requirements of the airliners play a key role in the agreement between the insurance companies and the airliners.&nbsp;</p>
<p style="text-align: justify;">
	<strong>The country’s first-ever aviation insurance summit was organized in the capital recently. How helpful was this summit?</strong></p>
<p style="text-align: justify;">
	The summit was a milestone in Nepal’s aviation sector. It’s &nbsp;definitely a positive development. It helped the stakeholders in the aviation business to know each other and, at the same time, provided a platform to share their experiences, views and problems. I think the re-insurers, the under-writers and other stakeholders who participated in the programme knew the actual situation of Nepal and the aviation insurance business here. The summit was successful and the Nepali stakeholders have succeeded in addressing some of the key issue of the aviation insurance business in Nepal.</p>',
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			'description' => 'The margin between the premium collected from the airlines companies and the premium paid to the re-insurers is very small. It shows that they are not able to save even the cost to transfer their risks.',
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