Notice (8): Undefined variable: file [APP/View/Elements/side_bar.ctp, line 60]
Code Context
//    $file = 'http://aabhiyan:QUVLg8Wzs2F7G9N7@nepalstock.com.np/api/indexdata.xml';



    if(!$xml = simplexml_load_file($file)){
$viewFile = '/var/www/html/newbusinessage.com/app/View/Elements/side_bar.ctp'
$dataForView = array(
	'articles' => array(
		(int) 0 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 1 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 2 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 3 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 4 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 5 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 6 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 7 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 8 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 9 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 10 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 11 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 12 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 13 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 14 => array(
			'Article' => array(
				[maximum depth reached]
			)
		)
	),
	'current_user' => null,
	'logged_in' => false
)
$articles = array(
	(int) 0 => array(
		'Article' => array(
			'id' => '664',
			'article_category_id' => '60',
			'title' => 'Cathay Pacific Airways Wins “World’s Best Business Class”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="" border="1" height="214" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/cathay(1).jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	Cathay Pacific Airways has been awarded with “World’s Best Business Class” award at Skytrax World Airline Awards ceremony held on July 12. The Skytrax awards, conducted by the global aviation research organisation, polled over 18 million business and leisure air travelers from more than 100 countries. <br />
	<br />
	<br />
	“The result is the global benchmark of airline excellence, in which more than 18 million airline passengers from across the world picked their choices. We couldn’t have delivered the industry-beating products and services without our customers. I would also like to thank all for their genuine collaboration in the design process,” said John Slosar, Chief Executive of Cathay Pacific. <br />
	<br />
	<br />
	As passengers enter the cabin, they immediately appreciate the sense of space and openness. It has clean, sculpted lines define private seats with direct aisle access. Abstract patterns, richly woven fabrics, fresh-cut orchids and original artwork harmonise to create a warm, premium residential feel. The new Business Class features natural leather, brushed steel and richly woven fabrics that blend soothing green, brown and champagne tones. Abstract patterns on table tops, fresh-cut flowers and splashes of colour in storage areas provide elements of warmth. <br />
	<br />
	<br />
	Each seat is equipped with a universal Power Supply outlet to keep electronic devices fully charged. A Multi-port Connector includes an RCA port, an iPhone/iPod connector and a USB port. The RCA and the iPhone/iPod connector allow passengers to connect their own devices and watch video through the Personal TV. Cathay Pacific is also introducing a new line of Business Class service-ware featuring simple, elegantly designed white porcelain by Narumi of Japan. The appetiser plate features an abstract bamboo pattern also found on the signature plate introduced in The Deli of The Cabin. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Cathay Pacific Airways has been awarded with “World’s Best Business Class” award at Skytrax World Airline Awards ceremony held on July 12. The Skytrax awards, conducted by the global aviation research organisation, polled over 18 million business and leisure air travelers from more than 100 countries.',
			'sortorder' => '562',
			'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) 1 => array(
		'Article' => array(
			'id' => '663',
			'article_category_id' => '60',
			'title' => 'Air Arabia Named World’s Second Best Performing Airline',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="" border="1" height="221" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/airarabia.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	Air Arabia, demonstrated sustained profitability and solid growth margins in 2011, placing it at number two among all airlines worldwide. In each of the past years, the airline has advanced its ranking in the TPA rankings. <br />
	<br />
	<br />
	Air Arabia, the Middle East and North Africa’s first and largest low-cost carrier, has been ranked as the world’s second best performing airline in a study by Aviation Week, the leading global aviation magazine. The Top-Performing Airlines (TPA) Study ranks the top 10 performing airlines worldwide, based on five different performance categories, including financial and operational performance. <br />
	<br />
	<br />
	Air Arabia, demonstrated sustained profitability and solid growth margins in 2011, placing it at number two among all airlines worldwide. In each of the past years, the airline has advanced its ranking in the TPA rankings. <br />
	<br />
	<br />
	“To be ranked second among all airlines worldwide for the level of our performance, it’s a remarkable achievement and a source of great pride for everyone at Air Arabia,” said, Adel Ali, Group Chief Executive Officer of Air Arabia. “As we continue to expand into new geographies and consolidate our leadership position in existing markets, Air Arabia is uniquely positioned to capitalise on the many exciting opportunities present in the aviation sector today.” <br />
	<br />
	<br />
	Air Arabia, which operates flights to 75 destinations from three regional hubs, delivered strong financial and operational performance in 2011. The low-cost pioneer launched six new destinations and took delivery of six new aircraft in 2011, while carrying a total of 4.7 million passengers, an increase of six per cent compared to the previous year. <br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Air Arabia, demonstrated sustained profitability and solid growth margins in 2011, placing it at number two among all airlines worldwide. In each of the past years, the airline has advanced its ranking in the TPA rankings.',
			'sortorder' => '561',
			'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) 2 => array(
		'Article' => array(
			'id' => '662',
			'article_category_id' => '60',
			'title' => 'Qatar Airways Named Best Airlines',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong><img alt="" border="1" height="158" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/qatar(4).jpg" vspace="5" width="400" /><br />
	<br />
	Qatar Airways has seen rapid growth in just 15 years of operation, currently operating a modern fleet of 109 aircraft to 117 key business and leisure destinations. <br />
	</strong><br />
	<br />
	Qatar Airways has been named Airline of the Year 2012 for the second year running at the prestigious annual Skytrax World Airline Awards held at the Farnborough Air Show. The Airways retained the coveted title of Airline of the Year 2012 and notched up two further awards – Best Airline in the Middle East for the seventh consecutive year and the Best Airline Staff Service award in the Middle East. The winners were announced at an award ceremony attended by leading figures from the global aviation industry at the Farnborough Air Show held on June 12. The Skytrax awards, conducted by the global aviation research organisation, polled over 18 million business and leisure air travellers from more than 100 countries. <br />
	<br />
	<img alt="" border="1" height="401" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/bestqatarairways.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	Akbar Al Baker, CEO of Qatar Airways hailed the achievements as “fantastic recognition” of all employees at Qatar Airways for the dedication and commitment to their job. “I am extremely proud of the adulation given once again by the very people who fly - the travelling public, for their support and faith in Qatar Airways,” he said at the ceremony. Retaining awards is always difficult, but we have managed to do so amid the tough competition which only shows we remain focused in our day to day job of offering passengers what they fully deserve; the highest standards of service both in the air and on the ground, he added. <br />
	<br />
	<br />
	Edward Plaisted, CEO of Skytrax said, “To win the ‘Airline of the Year’ award for a second successive year is a remarkable achievement for Qatar Airways, and a clear recognition of the continued efforts by its management and staff to be the world’s best airline.” Qatar Airways has seen rapid growth in just 15 years of operation, currently operating a modern fleet of 109 aircraft to 117 key business and leisure destinations across Europe, Middle East, Africa, Asia Pacific, North America and South America. Since the beginning of the year, it has launched flights to Baku (Azerbaijan), Tbilisi (Georgia), Kigali (Rwanda), Zagreb (Croatia), Erbil (Iraq), Baghdad, and Perth (Australia). The Airways has planned to launch its services to new destinations, including Kilimanjaro (Tanzania), Mombasa (Kenya), Yangon (Myanmar), Maputo (Mozambique) and Belgrade (Serbia) within a couple of months. <br />
	<br />
	<br />
	The subsidiary of Qatar Airways, Qatar Duty Free, has announced an exciting Summer Surprises Promotion for passengers departing from, or transiting through, Doha International Airport (DIA). The promotion that runs until August 31 allows customers who spend $136 or more on duty free purchases to automatically be eligible for a raffle draw to win shopping vouchers worth US $10,000, $5,000 and $1,000 and discount coupons. <br />
	<br />
	<br />
	Similarly, Qatar Airways has launched a Twitter-powered global social media campaign designed to connect people from around the world. The airline has also announced a Twitter-only competition called Tweet-a-Meet through which participants can win business class trip to their favourite destination. <br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Qatar Airways has been named Airline of the Year 2012 for the second year running at the prestigious annual Skytrax World Airline Awards held at the Farnborough Air Show. The Airways retained the coveted title of Airline of the Year 2012 and notched up two further awards – Best Airline in the Middle East for the seventh consecutive year and the Best Airline Staff Service award in the Middle East. The winners were announced at an award ceremony attended by leading figures from the global aviation industry at the Farnborough Air Show held on June 12. The Skytrax awards, conducted by the global aviation research organisation, polled over 18 million business and leisure air travellers from more than 100 countries.',
			'sortorder' => '560',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 3 => array(
		'Article' => array(
			'id' => '661',
			'article_category_id' => '60',
			'title' => 'Etihad Airways Q2 Revenue US$ 1.25 Billion',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="etihadairways" border="1" height="178" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/etihad(1).jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	Etihad Airways’ ASKs rose by 25 per cent to 15.2 billion in the second quarter, as the fleet grew to 67 aircraft from its earlier 61. The revenue of Etihad Airways in six months this year has increased by 31 per cent to US$ 1.25 billion from US$ 957 million as compared to last year. The number of passengers has leapt up by 34 per cent to 4.89 million during the six months from 2.55 million in 2011. The increase in overall capacity and improved seat factors has contributed to the increment in the revenue, says the company. <br />
	<br />
	<br />
	The record results were boosted by the airline’s growing network of code-shares and strategic partnerships which together fed 800,000 passengers into Etihad Airways’ network in the last six months, contributing US$ 281 million. James Hogan, President and Chief Executive Officer of Etihad Airways said, “These results are an endorsement of our strategy, which has seen us widen and deepen our partnerships in addition to continued focus on our organic growth plan.” <br />
	<br />
	<br />
	Etihad Airways’ available seat kilometres (ASKs) rose by 25 per cent to 15.2 billion in the second quarter, as the fleet grew to 67 aircraft from its earlier 61. Likewise, revenue passenger kilometres (RPKs) rose 33 per cent to 11.8 billion from 8.9 billion. During the period, the Airways took minority equity stakes in Aer Lingus and Virgin Australia, adding to its minority shareholdings in Air Berlin and Air Seychelles. These five airlines together carried 72 million passengers on 376 aircraft in 2011, generating combined revenues of more than US$ 14 billion. <br />
	<br />
	<br />
	Recently, the Airways unveiled plans to launch daily flights to Sao Paolo in Brazil, its first South American destination, which will start from June 2013. “We are very pleased to see the projected revenue benefits and cost synergies for both Etihad Airways and our partners tracking in line with, or even above, plan which shows once more that our partnership strategy delivers value to all parties’ shareholders,” said Hogan. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Etihad Airways’ ASKs rose by 25 per cent to 15.2 billion in the second quarter, as the fleet grew to 67 aircraft from its earlier 61. The revenue of Etihad Airways in six months this year has increased by 31 per cent to US$ 1.25 billion from US$ 957 million as compared to last year. The number of passengers has leapt up by 34 per cent to 4.89 million during the six months from 2.55 million in 2011. The increase in overall capacity and improved seat factors has contributed to the increment in the revenue, says the company.',
			'sortorder' => '559',
			'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' => '660',
			'article_category_id' => '40',
			'title' => 'Drug Drive : The Rising Business Pharmaceutical Companies In Nepal',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Sushila Budhathoki <br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<br />
	<span style="font-size:14px;"><strong>Drug Drive : The Rising Business Of Pharmaceutical Companies In Nepal</strong></span></p>
<p>
	 </p>
<p>
	<br />
	<br />
	<img alt="coverstory July 2012" border="1" height="226" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs.jpg" vspace="5" width="400" /><br />
	<br />
	Nepal’s pharmaceutical expense is at par with other South Asian countries, thanks to the increase in the number of pharmaceutical companies and their production. In 2008, the total per capita pharmaceutical expenses was US$ 6.96 while the total amount of pharmaceutical expenses stood at Rs 13.09 billion in Nepal. Mahesh Gorkhali, President of Association of Pharmaceutical Producers Nepal (APPON) says Nepali companies are growing at around 15-20 percent annually. The growth has resulted in around 42 per cent command of the market by Nepali products with strong presence and distribution network of marketers in the rural and remote areas. <br />
	<br />
	<br />
	A ‘Market Study Report on Pharmaceutical Products in Nepal’ conducted in 2011’ depicts the shining business of Nepali pharmaceutical industries. According to the report, Nepal experienced significant growth in medicine production in Asia when the growth rate was 11 per cent globally in the year 2009. Nepal obtained annual growth rate of pharmaceutical products at 19.52 per cent even ahead of India who saw 13 percent growth during the same period. According to the report, the total turnover of Nepali companies was approximately Rs 6.8 billion where the company registering lowest sales turnover was Rs 20 million and the highest at about Rs 600 million. The World Health Organization’s report ‘The World Medicines Situations 2004’ listed Nepal among 84 countries that produced pharmaceutical finished products from imported ingredients whereas India was categorized among 17 countries that had innovative capacity. <br />
	<br />
	<br />
	Pradeep Jung Pandey, President of Lomus Pharmaceutical Pvt Ltd says that Nepali companies are capable of producing some of the segments out of big variants of medicinal products. He adds, “We have the potential of increasing the market share at a fast pace.” Most of the Nepali allopathic medicines are of oral dosage forms of tablets, capsules, liquid, syrup, powder for oral suspension while topical preparation like cream, ointment and lotion are also produced. If vaccines, contraceptives, ARV (Anti Retroviral), large volume drugs and few others are excluded, Nepali companies tend to acquire big market share, say experts. Radha Raman Prasad, Director General and Chief Drug Administrator at Department of Drug Administration (DDA) states that medicines can be imported like other goods from the global market. “When the market is dictated by the Nepali industries, the foreign companies that cannot compete will automatically exit,” he says. <br />
	<br />
	<strong><br />
	Demand, Supply and Investment <br />
	</strong><br />
	<br />
	<img alt="" border="1" height="228" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs1.jpg" vspace="5" width="300" /><br />
	<br />
	Demand of Allopathic medicines is high in Nepal. There are altogether 45 Nepali companies operating in the market with 4,677 brands and thousands of products. According to the market study 2011, public expense on pharmaceuticals was Rs 2.96 billion in the year 2008. Similarly, total private expense on pharmaceutical products was Rs 10.06 billion. <br />
	<br />
	<br />
	The size of Nepali medicine market is estimated at Rs 18 billion and the Nepali companies command 42 per cent market share. Manufacturing of oral antimicrobials like penicillin, β-lactam, Non penicillin, antifungals, anthelminthic and antiviral (Simplex) is common while some are engaged in producing non-steroid pain killers, nutritional supplements, enzymes, haematinics, oral steroids, cardiovascular (heart and blood pressure), diabetes, psychiatry (mental disorder) etc. <br />
	<br />
	<br />
	Many Nepali and foreign companies are importing and supplying pharmaceutical products. Their role is significant for fulfilling the demand of various kinds of medicines in Nepal. According to DDA, 257 foreign pharmaceutical companies acquired licenses to sell their allopathic medicines in the year 2067/68. Similarly, 11,769 medicines are registered with DDA including 7,092 foreign and 4,677 Nepali products. There are altogether 1,544 wholesalers and 8,110 retailers throughout the country. <br />
	<br />
	<br />
	The estimated investment in the pharmaceutical industry of Nepal is around Rs 735 million to Rs 1.47 billion. Mahesh Gorkhali, President of Association of Pharmaceutical Producers Nepal (APPON), explores the need of high investment for the establishment of a pharmaceutical Company. He says, “For a good company mainly producing tablets, capsules and liquids, around Rs 25-30 million is required as an investment depending upon the choice of machinery equipments, building, location etc. Establishing an industry in city areas is usually costlier than in the terai or hilly regions.” Nepali industries are not API (Actual Pharmaceutical Ingredients) manufacturers; they import raw materials from other countries. The cost of the raw materials is also increasing investment in the pharmaceutical industries. <br />
	<br />
	<br />
	<strong>Emerging Pharmaceuticals <br />
	</strong><br />
	The number of Nepali allopathic companies has reached 58, according to the DDA. Altogether, 11 new allopathic companies have been registered in the FY 2068/69 whereas only two allopathic companies were registered in the previous year. A number of pharmaceutical companies have been established in different districts like Dang, Bharatpur, Sunsari, Jhapa, Bhaktapur, Kathmandu, Nawalparasi, Birgunj, Lalitpur, Bara and Parsa with investment of billions of rupees (see table). According to the DDA, pharmaceutical companies registered in the FY 2068/69 have proposed a total investment of 1.83 billion Rupees including investment from both herbal and allopathic companies. <br />
	<br />
	<br />
	<strong>Job Destination <br />
	</strong><br />
	<img alt="" border="1" height="220" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs3.jpg" vspace="5" width="300" /><br />
	<br />
	<br />
	Pharmaceutical business has employed thousands of people in pharmaceutical production, distribution and marketing. There are 4,200 medical representatives, 2,474 pharmacists and more than 13,000 professionals employed with various pharmaceutical companies. Regular human resource like managers, accountants, computer operators, receptionist, cleaners, drivers, kitchencrew, HR and admin officers also find work with these organisations. Pharmaceutical companies also provide internship to hundreds of students every year who are mostly recruited in the very companies at a later stage. Sanju Acharya, Administrative Assistant at Nepal Pharmacy Council, opines that there is a huge demand of pharmacy graduates in the pharmaceutical sector. Pharmacy professionals are of two categories; those who have graduated in Pharmacy and above up to PhD level and the ones who complete three year Diploma in Pharmacy under the Council for Technical Education and Vocational Training-CTEVT program. Pharmacy students are highly in demand at Pharmacy colleges as teachers and laboratories and hospitals as researchers or lab assistants. By law, a hospital must own a pharmacy operating 24 hours, which also provides opportunity to these students. Graduates from the Institute of Medicine (IOM) and Kathmandu University are mostly found applying for foreign colleges in search of greener pastures. Having seen the better job opportunities, many colleges have started to include pharmacy as a subject in their curriculum. There are around 16 pharmacy colleges affiliated to Tribhuvan University, Pokhara University and Purbanchal University. Together, they produce pharmacy graduates for the industry with an annual intake of around 600- 650 graduates yearly. Kathmandu University runs B Pharm, M Pharm, Pharm D and PhD programs while CTEVT runs three year Diploma in Pharmacy program at 24 different institutions, with an annual intake of 960 persons. The undergraduates are mostly utilized in community pharmacies. <br />
	<br />
	<br />
	<strong>High Competition <br />
	</strong><br />
	<br />
	The market share of Nepali companies in the urban set up is approximately 20 per cent and the rest 80 per cent in the rural markets. The reason behind this is credited to high competition among Nepali pharmaceutical companies and limited customers or prescribers, in spite of progressive marketing and promotion of the medicines. It clearly depicts that if the share of Nepali products increases in the city areas, their total share in the pharmaceutical market will experience a significant growth ultimately. However, new industry registrations too signal to follow the same trend which industrialists fear would lead to further competition. Government authorities state that the import of large volumes of drugs from other countries is due to the scarcity of varieties of medicines in the market. On the other hand, Industrialists accuse the government of importing many similar products from India which they say is also one of the reasons behind severe competition. Most of the medicines are ‘me too’ products which has compelled high competition between Nepali companies as well as the imported ones. Most pharmaceutical products are related to a particular disease or a group of diseases (therapeutic segment), and are not spread in diverse therapeutic segments. Apart from that, products like Albendazole, Amoxicillin, Azithromycin, Ciprofloxacin, Fluconazole, Paracetamol, Ibuprofen, Hyoscine, Metronidazole, Ofloxacin, etc are manufactured by around 20 to 30 companies. Similarly, around a dozen of companies produce the cardiovascular and diabetes medicines. “There should have been competition on varieties and quality of the medicines but some Nepali companies are desperately competing because of the similar products,” says freelance market researcher Rajan Raut. Similar products from foreign countries find their stand in the market even tougher as some of the Nepali products have even substituted imported products. <br />
	<br />
	<br />
	<img alt="coverstory" border="1" height="771" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs12.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	<strong>Monitoring and Inspection <br />
	</strong><br />
	<br />
	The DDA – that has 31 staffs which include 13 drug inspectors of different levels – has been facing a hard time in operating effectively. Such a limited manpower is considered a very low number to maintain the growing number of pharmaceutical industries, wholesalers and retailers. With little human resource to speak of, DDA runs different programs like marketing authorization, inspection, import control, licensing, market control, medicine advertisement and promotion, quality control and clinical trial. Quality inspection of medicines including laboratory reagents, surgical items, bandage, sutures, catheters etc are also some areas the DDA has been found lacking at. National Medicine Laboratory is the only public sector laboratory which monitors quality of the medicines through samples collected by the DDA. However, it doesn’t publicize the results publicly. Lack of good distribution practice and storage practice seems a common problem in many places. This is the reason why consumers often complain about consuming outdated medicines or shortage of essential medicines, blood, oxygen etc. Lack of proper monitoring system of pharmaceutical product is feared to grow ineffectiveness. No medicine company is found reporting its medicinal errors. As per the law, up to Rs 300,000 is to be paid by the manufacturer as compensation if medicine causes harm to the consumer. Baburam Bhattarai, President of Nepal Chemist and Druggist Association urges the need of regulating unregistered medical stores because according to him, they contribute towards creating health hazards. He says, “The government monitoring system has not been so effective. Besides, the current political situation is also fostering such business.” There is no specified division or section in DDA for WHO-GMP inspection either. Although the DDA has insisted that it has not found a single case of counterfeit drug, doctors from different districts bordering India fear its presence in the Nepali market. High prices of medicines have always been a controversial issue. DDA has fixed the actual price for up to 10 medicinal products including saline, painkillers and oral dehydrates. Shyam Adhikari, Drug Inspector at the DDA says they are looking at a mechanism to ascertain the prices of Nepal made medicines as well as the imported ones in the coming days. Recently a ‘Price Monitoring Committee’ has been formed with the participation of members from the DDA, pharmaceutical industry and consumers’ representatives. However, the companies insist that they keep the profit margin scientifically with the approval of the Government of Nepal. Pandey points that the Nepali medicines are priced either at par or a little cheaper than those of their Indian counterparts. Citing the example of a paracitamol tablet, he says, “A single unit of citamol tablet costs Rs 2 in Pakistan and India while it costs only one rupee in Nepal.” Pharmaceutical companies do not produce drugs in a large volume neither do they run with full capacity. Nepali pharmaceutical companies are using 20 to 90 per cent of their respective capacities for production and operate about 8 hours daily which is said to be the major reason behind the high production cost of the medicines. <br />
	<br />
	<br />
	<strong>Investment in Research &amp; Development <br />
	</strong><br />
	<br />
	There are only two or three companies that have been producing biological products. Most of the demand of injectables and biological drugs is fulfilled through imports. Essential medicines which require high technology are donated to Nepal by different international aid agencies from abroad. They also provide vaccines for expanded programs of immunization and medicines for the treatment of tuberculosis, leprosy, HIV/AIDS and sexually transmitted infections (STI), malaria, kala-azar and filariasis etc, for free. Nepali companies are producing around 33 per cent of essential medicines mainly producing therapeutic drugs. Industrialists are apprehensive about invest in research &amp; development (R&amp;D) because of the current political instability and law and order situation, say analysts. Most of the Nepali companies have limitations in terms of technical capability and innovation. On the other hand, foreign companies including multinational ventures have access to latest technologies and are engaged in import of medicines. However, there is no technical collaboration between the multinational ventures and Nepali companies. Industrialists too agree that Nepali pharmaceutical companies should conduct varieties of research and fulfil the demand of high tech medicines in Nepal. They accuse the government for not supporting them adequately as R&amp;D requires high investment, manpower and technology. <br />
	<br />
	<br />
	<strong>The Way Forward <br />
	</strong><br />
	<img alt="" border="1" height="200" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs4.jpg" vspace="5" width="300" /><br />
	<br />
	Many Nepali companies are manufacturing high quality products of international standards and fostering the growth of the Nepali medicine market. Zinc tablet, which is useful for treating ringworm disease in children and popular among international companies, is a product of Deurali Janata Pharmaceutical (DJP). Radha Raman Prasad, Director at DDA, seems satisfied with the quality of Nepali pharmaceutical products. He says, “Few samples have been found lacking quality in the market due to some reasons but I think the overall quality of Nepali medicines is at par with international standards.” Experts involved in the business of medicinal products suggest drug producers to work collectively towards exporting Nepali medicines. Prasad admits that export is not just limited to the quality of the drug. He says that every country has some clauses and Nepal can fulfil those clauses. Some of the Nepali companies are even trying to export drugs to Singapore and Malaysia. “We are very rich in resources for pharmaceutical products, all we need is skilled manpower and the technology. Provided these aspects, we have huge potential for export,” he adds. The much awaited National Drug Policy has been drafted by the DDA. According to Prasad, efforts have been made during the preparation of the draft to address the issues of pharmaceutical industries. He says, “The draft focuses on new areas of thrust, in comparison to the previous policy which focused on export. It has a provision of contract manufacturing for technology input, providing incentive for R&amp;D activities, manufacturing, clinical research and attracting foreign countries for R&amp;D.” From a human resource perspective, students who have studied bio pharmacy abroad have started returning to Nepal. This development promises to enable companies to operate various researches. In August 2011, DDA permitted contract manufacturing of pharmaceutical products to the manufacturing contractors owning WHO-GMP certificate and licenses of the products. The Department of Commerce and Supplies and District Administration Offices are conducting inspections on a regular basis to find out sales of expired drugs and also making their findings public. GMP and GLP (Good Laboratory Practice) standards are meant to pave the way for assuring efficacy and quality of the drugs in the international market and are expected to ease the export of the products. Currently, there are 26 companies that are manufacturing pharmaceutical products by maintaining GMP standards. The rest are also in the process of obtaining GMP as the DDA has urged all non-GMP certified companies to come under GMP certification by the end of the year. <br />
	<br />
	<br />
	<img alt="" border="1" height="457" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs_11.jpg" vspace="5" width="401" /><br />
	<br />
	<strong>COVER STORY <br />
	</strong><br />
	<br />
	<strong>‘The Growth of Nepali Pharmaceutical Industries is Quite Appreciable’ <br />
	</strong><br />
	<img alt="" border="1" height="330" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/BABURAM-BHATTARAI.jpg" vspace="5" width="300" /><br />
	<br />
	<strong>BABURAM BHATTARAI <br />
	President <br />
	Nepal Chemist and Druggist Association <br />
	(NCDA) <br />
	<br />
	</strong><br />
	<br />
	<strong>How do you see the growth of Nepali pharmaceutical industries in recent times? <br />
	</strong><br />
	<br />
	The growth of Nepali pharmaceutical industries in recent time is quite appreciable. Around 42 per cent home demand is fulfilled by them so it can be considered satisfactory. I think the Nepali medicines are doing good business because the products are qualitative and the demand is increasing on a regular basis. I see a golden future for Nepali pharmaceutical products. <br />
	<br />
	As far as my knowledge is concerned, the level of consumption for most of the products made in Nepal is satisfactory and so is their supply system. However, most of the companies are producing the same types of medicine which has created unhealthy competition. <br />
	<br />
	<br />
	<strong>How is the production and export-import business of pharmaceutical products in Nepal? <br />
	</strong><br />
	<br />
	The history of allopathic medicine in Nepal is less than 100 years old. Medicine was used with the start of the modern medical system and during that time, pharmacy products were imported from different countries while such services were limited to only the big cities. The situation has changed now and we have many pharmaceutical companies established in our own country. Imported as well as home grown products are available even in the remote areas of the country today. However, it has not been smooth yet and the mishandling and misuse of drugs is a great threat. <br />
	<br />
	<strong><br />
	Counterfeit drugs is said to be one of the biggest challenges faced by the pharmaceutical industry. What is NCDA doing towards it? <br />
	</strong><br />
	<br />
	I agree with this statement to some extent. Basically, there are two reasons behind the availability of counterfeit drugs. The first one is that we share a open border with India and the second is that there are so many unregistered medical stores all over the country. The government monitoring system has not been effective enough. I don’t think that the NCDA member firms are involved in the supply of such medicines. The government should regulate these unregistered medical stores and bring them under the purview of the legal system. NCDA, on its part, is planning to release the list of registered medical stores and products available at these stores, on its website. It is always ready to support government initiatives to control the availability of counterfeit drugs. <br />
	<br />
	<br />
	<strong>Consumers often complain that the medicine prices vary from pharmacy to pharmacy. It is also said that the margin of profit is kept very high in pharmaceutical products. What do you have to say about such practices? <br />
	</strong><br />
	<br />
	I cannot agree with your statements. NCDA was established with the mission to supply qualitative, effective and safe drugs at affordable prices and we are always conscious regarding the uniformity of medicine prices. However, there may be some misuses from unregistered stores despite all our efforts and commitments. NCDA is committed to endorse the sale of medicines at their justified prices. However, if there are any complaints on account of price manipulation, please do inform to any of our NCDA branches so that we can regulate such pharmacies. <br />
	<br />
	<br />
	As for the margin of profit being high in pharmaceutical products, this is nothing but plain rumor. We are keeping the profit margin scientifically with the approval of the Nepal Government. <br />
	<br />
	<br />
	<strong>A great amount of medicines are sold on a daily basis without the doctors’ prescriptions. How risky is this for public health? <br />
	</strong><br />
	<br />
	This is a serious question that you have brought up. We all are quite aware about the health service standards in our country .We have a very limited numbers of doctors and that too, they are available only in the urban areas. Therefore, scores of villagers do not have access to services provided by doctors. This explains the situation of no prescriptions where there are no doctors. You have to acknowledge the fact that the patients have to get medicines anyway. Nowadays, the paramedics (HA, CMA &amp; ANM) are dispensing medicines in the remote areas. The government is not bothered about this problem and many serious health hazards occur due to the state’s apathy towards health services. <br />
	<br />
	<br />
	<strong>The shortage of general medicines in rural areas often inconveniences many families in Nepal. What’s your take on this? <br />
	</strong><br />
	<br />
	Although our business is a service business, there is a profit motive as well. The few pharmacy assistants and professionals that we have in the country confine themselves to the densely populated areas because they want to do good business. However, there are so many remote areas where there is no storage of general medicines but the problem is that the pharmacy dispensers are not available in such areas. I have also repeatedly drawn the attention of the concerned authorities to run orientation training targeting these areas so that the problem of dispensing medicines can be solved to a large extent. <br />
	<br />
	<br />
	<strong>How wealthy are we in terms of human resources especially in the production, marketing and distribution of pharmaceutical products? <br />
	</strong><br />
	<br />
	As far as the availability of human resources is concerned, let me assure you that many pharmacists and pharmacy assistants are produced every year. The number of pharmacy colleges is also increasing. Most of the pharmacists are employed in industries and academics whereas the pharmacy assistants are engaged in dispensaries. But the tragedy is they are not available in the remote areas. <br />
	<br />
	<br />
	<strong>The Nepali pharmaceutical industries asked the government to stop importing Indian drugs sometime ago. Can it be considered reasonable in a liberal market economy? <br />
	</strong><br />
	<br />
	Nepal is a small country in comparison to our neighbors and the market of any product is limited. It is not bad to promote indigenously produced medicines until our economy is competitive enough to export. Billions of rupees have been invested in the pharmaceutical industries. I think it’s the duty of the government to support these companies by whatever means possible. <br />
	<br />
	<br />
	<strong>What is the possibility for exports of Nepali drugs abroad? What are the challenges in this regard? <br />
	</strong><br />
	<br />
	I don’t see any possibility of Nepali medicines for export in the current context. Even though all the companies of Nepal follow the WHO GMP standard, different countries may have different technical standards. The private sector effort to export medicines may not be an effective one. The government initiation is the primary requisite and a must to realize export efforts. <br />
	<br />
	<br />
	<strong>COVER STORY <br />
	<br />
	<br />
	‘The Overall Quality of Nepali Medicines is at Par with International Standards’ <br />
	</strong><br />
	<br />
	<img alt="" border="1" height="330" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/RADHA-RAMAN-PRASAD.jpg" vspace="5" width="300" /><br />
	<br />
	<strong>RADHA RAMAN PRASAD <br />
	Director General <br />
	&amp; Chief Drug Administrator <br />
	Department of Drug Administration <br />
	</strong><br />
	<br />
	<br />
	<strong>How do you see the growth of Nepali pharmaceutical industry in recent times? <br />
	</strong><br />
	<br />
	New industries are entering into the market but most of them are producing ‘me too’ drugs. The competition is heightening among such kind of drugs. The trend of new industry registration shows that producers are willing to produce similar kind of products that already exist in the market. Such a trend is more common than producing vital drugs and competing with imported products which may help reduce imports and market share of imported drugs. Although new industries have taken industry establishment reference letter for producing large volume drugs, further progress is not seen in the actual establishment of industries. It is very important to produce large volume drugs with quality but little progress has been made towards it. Even though producers are promising to do it, it has not happened till date. <br />
	<br />
	<strong><br />
	New industries are being established every year. Do you see potential in them to make the country self sufficient in drugs and reduce imports? <br />
	</strong><br />
	<br />
	It is not that they do not have the capacity to produce to the extent of self sufficiency but it is limited to specific drugs. The environment for producing numerous drugs to the extent of self sufficiency has already been created but not for all medicines. Nepali companies have a market share of 43 per cent. If vaccines, contraceptives, ARV (Anti Retroviral), large volume drugs and few others are excluded, Nepali companies will have a bigger market share. Some companies have an almost equal market position as Indian companies. Ethical promotions and marketing strategies have helped them create a niche in those sectors. Nepali drug industries have their presence in almost every part of the country. <br />
	<br />
	<br />
	<strong>Around 60 per cent of the drugs market is covered by the foreign companies. How can the share of Nepali industries be increased? <br />
	</strong><br />
	<br />
	The consumers of medicines are mostly the prescriber groups. So, the confidence of the doctors and prescribers needs to be won with ethical marketing and by offering qualitative drugs. This will help to increase the market share. However, only over-the-counter sales and promotion through pharmacies cannot deliver good results compared to ethical promotions. <br />
	<br />
	<br />
	<strong>Although imported drugs are said to be expensive than locally produced ones, why aren’t Nepali medicines preferred by the prescribers? How can Nepali products be promoted? <br />
	</strong><br />
	<br />
	It is necessary to look minutely into actual pricing. Some local drugs may be cheaper but it is difficult to say that products from established brands are actually cheaper. Such products are priced similar to the imported drugs. Quality assurance is the most important factor for promoting Nepali industries. Numerous producers and their associations as well as the DDA have moved towards quality assurance through various measures like complying with the WHO GMP standards. All the stakeholders are moving ahead keeping in mind quality as their central motive. It is a matter of satisfaction that Nepali industries are committed to quality assurance and they too are producing international standard drugs. Even though few samples have been found lacking quality in the market due to some reasons, I think the overall quality of Nepali medicines is at par with international standards. Many industries are now shifting to new locations, upgrading their technologies and carrying out renovation of their production units. Once quality is promised to the consumers, the market share will definitely increase. <br />
	<br />
	<br />
	<strong>It is often said that substandard medicines are being imported and expired medicines sold in pharmacies. What is your take on this situation? <br />
	</strong><br />
	<br />
	At times, it’s not only the drugs imported from India but also the Nepali drugs that are found to be below standard. However, we cannot generalise the situation and say that all products lack quality. There have been cases like discovering some particles on tablets and solidified dry syrup but these are exceptions. We have not found the entire batch of a particular medicine failing in case of one or two samples that are found defective. If the temperature is not adjusted as per the requirement during storage, some medicines change colour naturally over time. A pharmaceutical company produces drugs which is transferred to distributors, then to retailers and finally to the consumers. If the quality is not assured in the supply chain, some complications may arise despite the producer maintaining optimum quality. The producers are slowly getting conscious about it and the DDA too is committed to move towards this direction. <br />
	<br />
	<br />
	Regarding the sales of expired drugs, it is very important to maintain a good pharmacy and dispensing practice. The pharmacy workers must properly look at the prescriptions and scrutinise the medicines before selling them and also give proper information to the buyers. When this system is not practiced, there is a chance of expired drugs getting sold. Substandard and expired drugs must be filtered at the time of sales. At present, there are inspections carried out by the Department of Commerce &amp; Supplies and District Administration Offices to detect sales of expired drugs. Such activities have definitely brought a lot of awareness among consumers and also controlled such incidences. <br />
	<br />
	<br />
	<strong>Counterfeit drugs is also said to be one of the biggest challenges faced by the industry. What is DDA doing towards it? <br />
	</strong><br />
	<br />
	We have not found counterfeit drugs as of now. It’s true that we have found some medicines that are not registered here but they are not counterfeit in the true sense of the term. Such unregistered drugs are confined to around four-five types which have high difference in their prices such as Ciprofloxacin, Omeprazole and some aphrodisiac drugs. We have been carrying out awareness campaigns asking customers to mandatorily take bill on the purchase of drugs which will prevent buying of unauthorised drugs. A conscious citizen must as for bill on purchase of medicines and also seek information about the medicines. <br />
	<br />
	<br />
	<strong>What is the level of competition of Nepali pharmaceutical companies among themselves as well as with the foreign companies? <br />
	</strong><br />
	<br />
	The competition has always been there but it should now focus on quality while competing with ‘me too’ drugs in the market. Earlier, cardiac medicines were not produced within Nepal but now we have them. We also did not have the doctors’ confidence about higher antibiotics but now they prefer Nepali products. These are definitely very good signs. We have been monitoring and conducting inspection of Nepali industries, overseeing their quality and standard etc so we encourage using Nepali drugs with confidence. This confidence has also led Nepali industries beginning to tap the foreign market in recent times. <br />
	<br />
	<br />
	<strong>Raw materials as well as finished drugs are being imported at present. Which one is beneficial for our market situation? <br />
	</strong><br />
	<br />
	The Nepali industries are compelled to import raw materials to produce drugs here because we are not API (Actual Pharmaceutical Ingredients) manufacturers. Therefore, it is necessary to import raw materials. In the current global context too, there is no base to deny import of any products. When the market is dictated by the Nepali industries, the foreign companies that cannot compete will automatically exit. <br />
	<br />
	<br />
	If Nepali companies can produce drugs here, the human resource can be rightly utilised. The availability of human resource is cheaper in Nepal than anywhere else. Qualified human resource is being produced within the country and at the same time, semiqualified human resource is equally available. We have a condition to import quality raw materials at competitive prices. It also creates employment not only in the production line but also in the marketing of products. The industries also pay taxes to the state so from that perspective, local industries must be promoted. <br />
	<br />
	<br />
	<strong>It is said that there is huge potential for export of medicines to India along with other markets. How much have we cashed in on this potential? <br />
	</strong><br />
	<br />
	That potential has not been adequately explored as of now. A few industries that have reached a certain level of success in the local market have started looking towards those markets. All the drug producers must collectively move towards this direction to explore the potential. <br />
	<br />
	<br />
	<strong>COVER STORY <br />
	<br />
	</strong><br />
	<strong>‘We have Gained Trust from the Consumers because of our Quality Products’ <br />
	<br />
	<br />
	<img alt="" border="1" height="214" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/MAHESH-GORKHALI.jpg" vspace="5" width="300" /><br />
	<br />
	MAHESH GORKHALI <br />
	President <br />
	Association of Pharmaceutical <br />
	Producers of Nepal (APPON) <br />
	</strong><br />
	<br />
	<br />
	<strong>How do you see the growth of Nepali pharmaceutical industry in recent times? What is the kind of investment required to establish a pharmaceutical industry at present? <br />
	</strong><br />
	<br />
	As per an estimate, we are growing at around 15 to 20 per cent annually. The cost of establishing a pharmaceutical industry in the country generally depends on the number of segments that the investors target to operate with. Pharmaceutical industries cover different segments like – tablets, capsules, liquids, injectables etc. If an industry tries to cover all these segments, high investment is required. At the same time, low investment can enable an industry to operate with a single segment. As per our calculation, anywhere from Rs 25 to 300 million investment is required for a company producing tablets, capsules and liquids depending upon the choice of the machinery equipments, building, location etc. Establishing an industry in city areas is usually costlier when compared to the terai or hilly region. <br />
	<br />
	<br />
	<strong>How is the production and export-import business of pharmaceutical products doing in Nepal? <br />
	</strong><br />
	<br />
	There are altogether 45 Nepali companies operating in our market. Investors generally produce materials which they can sell even if they have a high production. There is a wide variant of medicines available in the market and we are capable of producing some of these, for example, Paracitamol tablets which are popular as citamol in Nepali households. To meet the remaining demand, we import a good amount of medicines from India, Bangladesh and some other countries. The export potential of Nepali medicines has not been tapped as yet. Nepali pharmaceutical companies occupy around 40-45 per cent market share while the rest is of foreign companies. Our companies can increase their market share only if we could expand our businesses massively. If we do not want to be contended only in the national market, we must grow and focus on exports. <br />
	<br />
	<br />
	<strong>How favorable is the government’s policy regarding the pharmaceutical industry? <br />
	</strong><br />
	<br />
	We don’t find a clear-cut policy of government for the development of Nepali pharmaceutical industries. As such, the pharmaceutical market is rapidly growing internationally and we are obliged to introduce and produce newer medicines or molecules to survive in the market. Since we lack manpower in developing newer molecules, we try to import them as soon as they are developed. Department of Drug Administration (DDA) under the Ministry of Health regulates our companies but it usually hesitates to provide a license whenever we apply to import a new molecule. It says that the molecule is not mentioned in Pharmacopeia - a book where every medicine is featured. Actually, medicines are featured in Pharmacopeia sometime later after the invention. It’s the responsibility of the government to either perish or nourish the pharmaceutical sector as the citizens of this country have the right to have proper medications. By permitting to import newer molecules, providing incentives or soft loans and declaring tax holidays for some years will definitely create good environment for the pharmaceutical sector. The government must also act as a responsible body by addressing problems such as the shortage of powerhouse, in consultation with the stake holders. I think that the Ministry of Health has so many responsibilities and hence, they may not be able to look after the manufacturing industries properly. Nonetheless, I believe they will formulate some good policies in the near future to encourage new investors when they realize our potential as a growing industry. <br />
	<br />
	<br />
	<strong>What are the challenges of the Nepali pharmaceutical industry in meeting the demand of pharmaceutical products in the market? <br />
	</strong><br />
	<br />
	Around 250 companies are involved in importing medicines from other countries so the biggest challenge we have is the faith of the consumers on Nepali products. The pharmaceutical market normally grows with the increase in the prescriptions or the number of the prescribers. We have gained that kind of trust from our consumers because of the quality products we deliver. All the leading doctors and medical experts prescribe Nepal made products which means the main challenge is already taken care of. Another challenge is to introduce newer molecules. <br />
	<br />
	<br />
	We need some lab testing which are often tedious, time consuming and expensive. We need to maintain refresh standard for which we don’t have the facilities but that can be procured. Furthermore, we have to develop our human resources including the marketing professionals so we are conducting different trainings and workshops to improve their capabilities. <br />
	<br />
	<br />
	<strong>What is the benefit of importing pharmaceutical products from India? What kind of competition have domestic factories been facing with hundreds of Indian products and companies in the domestic market? <br />
	</strong><br />
	<br />
	While moving from illness to wellness in the case of human health especially, pharmaceutical products have proved to be one of the essential elements in curing diseases. However, we don’t produce all kinds of medicines. For instance, we don’t produce saline water which is considered as an urgent medication for many diseases. We import it mainly from India as medicines such as this are beneficial to human health. <br />
	<br />
	<br />
	Competition between companies is natural in every business and pharmaceutical industries are no exception. Competition with importing companies is ethical in our business. However, there seems to be a fierce competition between the Nepali companies because of similar medicinal products and limited customers. Everybody wants to promote his own brand and the more number of companies, the more number of brands are there. <br />
	<br />
	<br />
	<strong>Although imported drugs are expensive than locally produced ones, why aren’t Nepali medicines prescribed much? <br />
	</strong><br />
	<br />
	This is untrue as majority of the doctors are prescribing our medicines. This is the reason why we are having 40- 45 per cent market share despite having competition from so many foreign companies. There has been a good promotion of our medicines and the doctors prioritize them whenever they prescribe the medicines to the patients. <br />
	<br />
	<br />
	<strong>How wealthy are we in terms of human resources especially in the production, marketing and distribution of pharmaceutical products? <br />
	</strong><br />
	<br />
	Initially, we had a real problem with human resource be it the marketing or production areas. It was very hard to train young graduates especially those without a science background. Thus the promotion of the products used to be a difficult task in the past. <br />
	<br />
	<br />
	In production also, there were not enough graduates who could earlier meet our criteria. However, there are 17 - 18 colleges now with pharmacy as a major subject. They are producing a good number of bachelors every year that can be utilized in pharmaceutical industries. We don’t have scarcity of such manpower now. <br />
	<br />
	<br />
	However, we don’t have quality manpower who could import newer molecules from foreign countries. Good companies have been providing trainings for their employees and sending them to different countries like Japan, Bangladesh and India for their capacity enhancement. They are improving and we hope that we will produce the required manpower for this sector as well. <br />
	<br />
	<br />
	<strong>It is said that the margin of profit is kept very high in pharmaceutical products. What do you have to say about that? <br />
	</strong><br />
	<br />
	Even though it seems so, it is not true. Actually, certain products have really high margins mainly because of the high expenses involved in their production. To produce a single medicine, we import different raw materials including chemicals and packaging materials. Besides, producing quality medicine is a very lengthy and time consuming process. There are other costs involved too which make medicines more expensive, for example, the marketing aspect. Whatever is the margin, the fact is that the product must be sold because without the sale of a product, there can be no profit. <br />
	<br />
	<br />
	<strong>It is said that there is a huge potential for export of medicines to India along with other markets. How much have we cashed in on this potential? <br />
	</strong><br />
	<br />
	Let me give you an example when my company used to export medicines in India a few years ago. We had applied to the Indian authorities for exporting medicines to which they agreed and we started to send our medicines. However, despite having all the certification and documents of our products, they would put our stock in their quarantine office once it reached Raxaul in India. They would say that approval can be provided only after some lab testing but by the time they did so, it would be already six months late. Another three months would be spent for lab testing so it’s only after nine months that we would be able to get the approval to supply our medicines in the Indian market. The same process would apply for each consignment. After all this, the Indian retailers would not agree to keep medicines having less than six months of validity. It continued for two years and we had a business of Rs 50-60 million only. After two years, we could not undergo the criteria once they applied a new system for Nepali companies. It became costlier and that is when we stopped exporting our products. However, we are again targeting India for the expansion of our products and hopefully, we will be successful in our endeavour. <br />
	<br />
	<br />
	<strong>Raw materials as well as finished products are being imported at present. Is it beneficial for our market? <br />
	</strong><br />
	<br />
	Yes, it is. We cannot produce medicines without raw materials and finished products since we don’t have the big plants to produce chemical and other essential materials. We don’t need to produce raw materials ourselves because of the limited market we have. Unless we expand our market, we can continue to import these items. <br />
	<br />
	<br />
	<strong>COVER STORY <br />
	</strong><br />
	<br />
	<strong>‘Maintaining GMP and GLP Standards will give Credibility to our Products Internationally’ <br />
	<br />
	<br />
	<img alt="" border="1" height="204" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/MOHAN-PRASAD-AMATYA.jpg" vspace="5" width="300" /><br />
	<br />
	MOHAN PRASAD AMATYA <br />
	Chief <br />
	National Medicine Laboratory <br />
	<br />
	<br />
	</strong><br />
	<strong>What is the major function of the National Medicine Laboratory? <br />
	</strong><br />
	<br />
	Our main objective is to ensure that safe and effective medicines are available in the Nepali drug market. Though it is the Department of Drug Administration (DDA) that awards license to pharmaceutical factories, it is our responsibility to test and evaluate the standard of their laboratories and drugs and refer them for the registration. Factories should obtain market license for each of their products. We develop Reference Standard and make it available to the pharmaceutical companies and laboratories. We also inspect retail and wholesale pharmacies to check the quality of drugs. The price monitoring of the marketed drugs is within our scope of work and we deploy drug inspectors for this task. They visit the market on a regular basis, purchase drugs from the pharmacies and bring it to us. We inspect quality, composition, packaging and every other detail of these drugs. If such drugs are found below the standard, we report it to the DDA which recalls these products from the market. Similarly, we visit laboratories and inspect products of foreign countries before importing them to Nepal. <br />
	<br />
	<br />
	<strong>Pharmaceutical companies also have their own laboratories. How good are they? <br />
	</strong><br />
	<br />
	A pharmaceutical company must set up its own laboratory. We visit their laboratories and conduct a thorough inspection. Aspects like hygiene of the lab and precautions taken for the safety of its manpower, availability of equipments and trained manpower, location of the lab and its space, structure of the building, availability of water and other resources are taken into account while giving approval to the laboratories for production. We visit them regularly even after the approval Therefore, we must say that existing labs have been maintaining the required standard. Of course, there is a lot of scope for improvement and it’s a continuous process. All in all, they are good. <br />
	<br />
	<br />
	<strong>Out of 49 pharmaceutical factories operating in Nepal, only 26 have been producing pharmaceutical products under the World Health Organisation’s (WHO) Good Manufacturing Practice (GMP). Why is this number so low? <br />
	</strong><br />
	<br />
	It’s been about 8 years that Nepal became a member of the WTO. However, our pharmaceutical companies were established long before we got associated with the WTO. At that time, our aim was to encourage people to invest in the pharmaceutical sector so that the country can gradually substitute imported medicines. The procedure to obtain operating licenses was not that strict. Now that the country has entered an agreement with the WHO to maintain its GMP standard, we could not ask them to upgrade their laboratories and manufacturing units overnight. It requires huge capital for a company to be at par with the international GMP standard. The DDA has been asking the existing factories to upgrade themselves time and again by allowing a certain time-frame to them. In fact, the DDA has directed all existing pharmaceutical companies to upgrade themselves by the end of this year. Because of this provision, many companies have applied for GMP and few of them have already received the certification. However, there are still some companies that have not applied for this process. I believe the DDA will take adequate measures against such factories in the future. <br />
	<br />
	<br />
	<strong>Have all the pharmaceutical companies been maintaining Good Laboratory Practices (GLP)? <br />
	</strong><br />
	<br />
	It is very essential to maintain GLP to establish a pharmaceutical industry. Companies that do not maintain GLP are not allowed to begin production. Before any pharmaceutical product is produced, we check whether the laboratory has used standard raw material and put the lab in the suitable location and purchased good quality machines or not. When the product is made, we analyse its composition, packaging, punching, amount of active drug in the medicine and its storage. These aspects fall under GLP and we make sure that factories are up to the mark on each of these aspects before granting it permission to operate. To make our existing factories concerned about GLP, we conduct trainings on this aspect regularly. <br />
	<br />
	<br />
	<strong>What special benefits will we have by producing pharmaceutical products in line with the WHO’s GMP and GLP guidelines? <br />
	</strong><br />
	<br />
	Maintaining GMP and GLP standards will give credibility to our drugs in the international market. It will eventually pave way for the export of our products. Though there are only 26 pharmaceutical manufacturing companies that have been producing products maintaining GMP standard, about five companies are in the process to get the certification. We will be visiting their manufacturing plants and the laboratories to refer for the certification. <br />
	<br />
	<br />
	<strong>So, we do have an opportunity to export our products. <br />
	</strong><br />
	<br />
	Export is not just limited to quality of the drug. Every country has a specific policy about importing drugs from another country. If our country can fulfil those clauses, we won’t have problem in exporting our products. Even India that has been exporting its products to almost all corners of the world, is willing to import drugs from us. But it has set some clauses regarding drugs import. If we can fulfil these clauses, India can be a potential market for our medicines. Therefore, export is more related to the policy of a specific country. Some of our companies are trying to export drugs to Singapore and Malaysia as well. We are very rich in resources for pharmaceutical products. All we need is skilled manpower and the technology. Provided these aspects, we have huge potential for export. <br />
	<br />
	<br />
	<strong>What sort of drugs are we strong in and where do we still need to do research? <br />
	</strong><br />
	<br />
	The domestic production has been able to fulfil 60 per cent of the current demand. For the remaining 40 per cent, we have to be dependent on imports. We are strong in therapeutic drugs but we still have to be dependent on imports for injectable drugs and biological products. It takes a huge capital and expert manpower to produce such drugs. The labs need to be sterilised and made aseptic to produce these medicines. Even the building has to be designed in a specialised way for such drugs. There are only two or three companies that have been producing biological products. Most of the demand for injectable and biological drugs is fulfilled through imports. <br />
	<br />
	<br />
	<strong>What is the status of human resource in the pharmaceutical sector? <br />
	</strong><br />
	<br />
	In the last few years, pharmaceutical sector has been witnessing a growth in the quantity of trained manpower. The existing four universities of our country have been producing manpower for this sector. Kathmandu University (KU) has been operating classes of pharmacy at the Bachelor, Masters and the Doctorate levels. Tribhuvan University (TU) also runs a bachelor level programme while Purbanchal Univeristy (PU) has given affiliation to about 19 colleges to operate pharmacy classes. Similarly, Pokhara University also has a Bachelor of Pharmacy programme. So, around 500 students graduate in this sector annually. <br />
	<br />
	<br />
	<strong>Where do these graduates get job placement? <br />
	</strong><br />
	<br />
	A large number of students with Bachelor degree in pharmacy open their own pharmacies while some others work in pharmaceutical factories, laboratories and hospitals. A few of them pursue a teaching career but most graduates from the Institute of Medicine (IOM) and Kathmandu University go abroad in search of greener pastures. The flow of application for establishing pharmaceutical factories was high a few years back but the present political situation has been a hindrance in establishing new factories. Therefore, the graduates find the overseas market better for greater exposure. If the country could emerge from the present political turmoil, they too can find employment opportunities in their own country. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-10-10',
			'keywords' => '',
			'description' => 'Nepal’s pharmaceutical expense is at par with other South Asian countries, thanks to the increase in the number of pharmaceutical companies and their production. In 2008, the total per capita pharmaceutical expenses was US$ 6.96 while the total amount of pharmaceutical expenses stood at Rs 13.09 billion in Nepal',
			'sortorder' => '558',
			'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' => '659',
			'article_category_id' => '52',
			'title' => 'Tunnel To Prosperity',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<br />
	<strong><img alt="From the editor" border="1" height="262" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/editoiral.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	The commercial viability of Kathmandu-Kulekhani-Hetauda road tunnel is unquestionably attractive given the traffic pressure it is likely to have. <br />
	</strong><br />
	<br />
	Nepal Infrastructure Development Company, a private sector initiative led by Immediate Past President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has shouldered the task of opening up the Kathmandu-Kulekhani-Hetauda road tunnel. This tunnel would substantially reduce the length of the road connecting Kathmandu with Hetauda to 50 km. <br />
	<br />
	<br />
	Fully functional roads that now connect Kathmandu with Hetauda are much longer. The most used Kathmandu- Mugling-Narayanghat-Hetauda road’s length is 224 kilometers (kms) while the largely discarded Tribhuvan Highway is 133 kms. The proposed fast track will be about 80 kms long and would open at a point of some 20 kms east of the main town of Hetauda. However, the distance with this tunnel would be only about 50 kms and the total travel time from Kathmandu to Hetauda will reduce to barely one hour. The pace of progress in the work to construct the tunnel has been more than impressive; demonstrating the advantage that a private sector led project can have even in infrastructure development aspect. The Company has also been a first test case of much talked about Public-Private Partnership and serves as the actual implementation of BOOT (Build, Operate, Own, and Transfer) model through a project entirely financed domestically. This also sets an example of how a large sized investment of about Rs 20 billion for this project alone could be generated within the country if a viable project is chosen and all users and stakeholders are made effective owners of the project. <br />
	<br />
	<br />
	Since the company got license in the third week of May 2012 from the government, it has created a tight timeline to complete the Detailed Project Report (DPR) by the end of November. The commercial viability of the tunnel is unquestionably attractive given the traffic pressure it is likely to have. This model also constitutes a rationale that the carrying capacity of the tunnel should also be fixed by the research on existing and potential increase in traffic flow between Hetauda and Kathmandu. <br />
	<br />
	<br />
	Most importantly, without upgrading the total stretch of the Balkhu-Pharping- Kulekhani-Hetauda road, only the proposed tunnel of mere three-kilometer length is unlikely to give any substantial benefit to the national economy and return to the investors. Had the entire road length been part of this project, it would only have delivered results as aspired. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-10-10',
			'keywords' => '',
			'description' => 'Nepal Infrastructure Development Company, a private sector initiative led by Immediate Past President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has shouldered the task of opening up the Kathmandu-Kulekhani-Hetauda road tunnel. This tunnel would substantially reduce the length of the road connecting Kathmandu with Hetauda to 50 km.',
			'sortorder' => '557',
			'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) 6 => array(
		'Article' => array(
			'id' => '658',
			'article_category_id' => '60',
			'title' => 'Etihad Buys Stakes In Virgin Australia',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="edihad" border="1" height="155" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/etihad.jpg" vspace="5" width="326" /><br />
	<br />
	<br />
	Etihad Airways, the national airline of the United Arab Emirates, has acquired a 3.96 per cent stake in Virgin Australia Holdings. According to a press statement, the stake has been built over recent weeks, through purchases in the open market. <br />
	<br />
	<br />
	The press statement reads, “Etihad Airways believes that this equity investment in Virgin Australia’s domestic operations significantly strengthens the 10-year strategic partnership forged by the two carriers in August 2010. It will enrich the commercial benefits which the alliance already provides for both airlines, as well as increasing the benefits to Australian consumers and visitors to Australia.” <br />
	<br />
	<br />
	Together, Etihad Airways and Virgin Australia operate 24 flights a week between Abu Dhabi and Australia and passengers have access to a combined network of more than 150 destinations, says the statement. Etihad Airways began flying to Australia in March 2007 when it launched services to Sydney. Melbourne and Brisbane were quickly added thereafter. Nearly 2.2 million passengers have been carried between Abu Dhabi and these three cities in the last five years. <br />
	 </p>',
			'published' => true,
			'created' => '2012-08-13',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Etihad Airways, the national airline of the United Arab Emirates, has acquired a 3.96 per cent stake in Virgin Australia Holdings. According to a press statement, the stake has been built over recent weeks, through purchases in the open market.',
			'sortorder' => '556',
			'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) 7 => array(
		'Article' => array(
			'id' => '657',
			'article_category_id' => '60',
			'title' => 'Qatar Airways CEO Al Baker On IATA Board',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="qatar" border="1" height="129" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/qatar1.jpg" vspace="10" width="400" /><br />
	<br />
	<strong>Qatar Airways CEO Akbar Al Baker has been voted onto IATA, the Board of Governors of the global aviation industry body. <br />
	</strong></p>
<p>
	 </p>
<p>
	Qatar Airways Chief Executive Officer Akbar Al Baker has been voted onto the Board of Governors of the global aviation industry body, International Air Transport Association (IATA). Al Baker was selected by fellow airline executives attending IATA’s annual World Air Transport Summit in Beijing this week. <br />
	<br />
	<br />
	His is a newlycreated position to increase representation for Middle East carriers on the revamped 10-member IATA board. Qatar Airways has also announced an engaging social media photo contest titled ‘Reflections’. Through this contest, the airline is giving away attractive prizes – Business and Economy Class air tickets and a total of 1.6 million Privilege Club Qmiles. The airline is inviting up to eight photos under the categories namely – Vibrant Cultures, Magnificent Cities, Breathtaking Nature and Exciting Journeys. <br />
	<br />
	<img align="left" alt="qatar" border="1" height="227" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/qatar(3).jpg" style="width: 224px; height: 227px;margin:10px;padding:10px;" vspace="10" width="224" />“Professional and amateur photography enthusiasts may upload photos, share them across their social network and invite support from their friends, family and followers in the form of votes. They can also view, vote on, and share photos submitted by other contestants to accumulate points. Each point they thus earn converts into a lucky draw entry,” reads the press release. Prizes include 10 Business and 50 Economy Class tickets. Qatar Airways Privilege Club programme is offering a mammoth 1.6 million Qmiles to be shared among the winners. <br />
	<br />
	<br />
	Qatar Airways has also enhanced its operations with the acquisition of comprehensive aircraft recovery equipment – the first airline in the world to own the complete state-ofthe- art kit. There are just 11 complete kits globally, but parts within each kit are owned separately by individual airlines and airports worldwide. At an investment of US$3.2 million, the equipment enables the airline’s Doha hub to be capable of recovering equipment parts of any aircraft type following an incident which renders an aircraft non operational. <br />
	<br />
	<br />
	In the span of just two weeks, Qatar Airways has expanded passenger services to Iraq with the launch of its second destination in the country –the capital city of Baghdad. The Doha-based airline is operating four-flightsa- week non-stop on the Baghdad route. The move came just two weeks after Qatar Airways launched flights, also fourtimes- a-week, to the northern Iraqi city of Erbil. <br />
	 </p>',
			'published' => true,
			'created' => '2012-08-13',
			'modified' => '2012-12-18',
			'keywords' => '',
			'description' => 'Qatar Airways CEO Akbar Al Baker has been voted onto IATA, the Board of Governors of the global aviation industry body.',
			'sortorder' => '555',
			'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) 8 => array(
		'Article' => array(
			'id' => '655',
			'article_category_id' => '60',
			'title' => 'Oman Air Begins  Muscat-Tehran Service',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p class="MsoNormal">
	<img alt="oman airways" border="1" height="167" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/oman.jpg" vspace="5" width="466" /><br />
	<br />
	<br />
	<span style="font-size:24.0pt;line-height:115%;font-family:
">&nbsp;</span></p>
<p class="MsoNormal">
	<strong><span mso-bidi-font-family:="" style="font-size:
12.0pt;font-family:">The airline recently introduced complete cell phone and</span> <span style="font-size:12.0pt;line-height:115%;font-family:
">Wi-Fi connectivity aboard Oman Air’s Airbus A330 aircraft.</span></strong></p>
<p class="MsoNormal">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal;">
	<strong><span style="font-size: 24pt; line-height: 115%; font-family: ">&nbsp;</span></strong><br />
	<span mso-bidi-font-family:="" style="font-size:
41.0pt;font-family:">O</span><span style="font-size: 10pt;">man Air is set to launch a new daily service between Muscat and the Iranian capital Tehran from September 1. Flights will depart Muscat for Tehran at <br />
	200hrs (3 days per week) and 0930hrs (4 days per week) and return from Tehran at 0710hrs (3 days per week) and 1340hrs (4 days per week) - all times local - offering good&nbsp; connections to onward destinations within the Oman Air’s network. <br />
	</span></p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal;">
	<span style="font-size: 10pt;">According to the company’s press statement, the new Muscat-Tehran route will be operated using Oman Air’s new Embraer 175 regional jets, which is said to offer superb levels of comfort in both Business and Economy Classes. “The addition of the new service to Tehran continues the rapid growth of Oman Air over the last 30 months,” says the company.&nbsp; <br />
	</span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
normal;mso-layout-grid-align:none;text-autospace:none">
	<span style="font-size:
10.0pt;font-family:"><br />
	</span></p>
<p class="MsoNormal">
	<span style="font-size:
10.0pt;font-family:">The airline has also recently introduced a range of new products and services, including the complete cell phone and Wi-Fi connectivity aboard Oman Air’s Airbus A330 aircraft.The statement further claims, “Over the same period, revenues and passenger numbers have increased dramatically, with customers showing their approval of the airline’s combination of quality and value by not only booking further flights, but also voting for Oman Air in a series of awards.” Oman Air has bagged the ‘Service Excellence, Middle East’ and ‘Best Business Class Seat in the World’ prizes at the World Airline Awards 2011 organised by Skytrax, as well as the 2012 Business Destinations Travel Award for ‘Best Business Class </span><span style="font-size:10.0pt;line-height:115%;font-family:
">Airline, Middle East’.<br />
	<br />
	</span></p>
<p>
	 </p>',
			'published' => true,
			'created' => '2012-08-13',
			'modified' => '2012-08-13',
			'keywords' => '',
			'description' => 'The airline recently introduced complete cell phone and Wi-Fi connectivity aboard Oman Air’s Airbus A330 aircraft.',
			'sortorder' => '554',
			'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) 9 => array(
		'Article' => array(
			'id' => '654',
			'article_category_id' => '31',
			'title' => '‘A Number Of Nepali Banks Are Interested In IS Audits’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<br />
	<img alt="visiting business People" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/julyvisitingbusinesspeople(1).jpg" style="width: 195px; height: 273px;" vspace="5" /><br />
	<strong><br />
	Rajesh Deo is a Security Analyst in the Technical Assessment Team at NII Consulting, a well-established provider of information security services and products, based in Mumbai, India. <br />
	</strong><br />
	<br />
	He specialises on conducting Security Audits, Vulnerability Assessment and Penetration Testing for NII’s premier clients. Deo holds Certified Professional Hacker (CPH), Certified Professional Forensic Analyst (CPFA) and Certified Information Security Professional (CISP) certificates from the Institute of Information Security, the training wing of Network Intelligence India Pvt Ltd. He was recently in Kathmandu to participate in a security awareness workshop. The workshop was focused on general properties of information security, its nitty-gritty, demonstrations of security network tools and Information Security Auditing. In an interview with New Business Age, Deo talked about various issues related to security audits. Excerpts: <br />
	<br />
	<strong><br />
	What brings you to Nepal this time? <br />
	</strong><br />
	<br />
	I am here to participate in the security awareness workshop. We will be conducting general introduction to information security and IT security. I hope this will be beneficial to the business community at large in Nepal because almost all sorts of businesses today require computing system in one way or another. So, it becomes important to have a security system so that there is no infiltration into the computer system that will misuse valuable data and stored information. <br />
	<br />
	<strong><br />
	What is the difference between IT security and information security? </strong><br />
	<br />
	<br />
	IT security is a specific area that targets computer system whereas information security encompasses everything. Information could be a regular paper, or data or any other product a company may develop and all of that becomes part of information security. So, when you talk of information security audits, it also audits business growth. <br />
	<br />
	<strong><br />
	What are the products and services NII is currently offering? </strong><br />
	<br />
	<br />
	NII is primarily into information security consultancy. We also have a product business with our sister concern called Institute of Information Security through which we do a lot of trainings. On the product side, we provide product support for products such as antivirus, anti-spam solutions, firewall products, data leakage prevention solutions and source code auditing – a unique area we specialise on. We are starting a new area where we are going to analyse mobile applications. We are planning to analyse java applications on an android platform. <br />
	<strong><br />
	<br />
	Is there any difference in the extent of vulnerabilities faced by the corporate sector in the South Asia region when compared to that of western developed countries? </strong><br />
	<br />
	<br />
	I don’t think there are any specific differences. We face the same challenges that our western counterparts are going to face or have already faced. The difference is in the sense that the western counterparts already have information system for a longer period of time. So, their approach to audit system is more matured. Having said that, we actually have the benefit of having that knowledge ahead of it and there could be specific challenges in terms of the process because our process is different than their processes. Auditing the security system and making sure that they are fraud proof and security around them is well built, is the important part. <br />
	<br />
	<strong><br />
	With the invention of new technology and security systems, newer forms of threats are coming along. How challenging has it been to maintain security in the present situation? <br />
	<br />
	</strong><br />
	Mobile threats are becoming a major arena. There is significant penetration of mobile computing that is going on currently in the South Asia region. A lot of people want to operate their bank accounts through their mobile phones so it becomes an attractive target for frauds. It is important to consider that area as the emerging factor. Basically, all mobile devices – android based devices, iOS based devices and tablets – are coming into extensive use not just on a personal level but also in business. Companies allow you to bring your own device but they want to make sure that the company’s data you put on that device is protected as well. That is bringing new challenges on separating personal data from work data and about how to protect work data while also allowing you to maintain your personal data. Therefore, the security of these mobile devices is becoming a crucial factor. <br />
	<br />
	<strong><br />
	How do you compare the trend of maintaining security in Nepal and India? </strong><br />
	<br />
	<br />
	The challenges are more or less the same everywhere. Even in India, we are facing similar challenges you might be facing here. In some areas, threats may be more advanced than in other places. As NII, our core plans have been in the banking and we are well versed with the processes that take place in banks. That factor will be a beneficial one when we start our operations here. We are well aware of analysing security and performing audits, doing the measurements for different purposes and allowing that to have impact on your actual business so that the posture of your organisation with each audit becomes better. Security audits should not only try to make the process but also the overall way of working better. <br />
	<br />
	<strong><br />
	Security auditing seems to be the important need at present. How aware is the corporate sector in this region about it? </strong><br />
	<br />
	<br />
	IS (Information Security) audit is one of the most important pillars of a good organisation. The reason is that computers are mostly used ubiquitously in all operations. So, all your important records are kept on computer. IS audit analyses your system and try to understand the threats that exist to your business. Based on threats, we will assess the controls you have in place and given the current control, we will suggest you the ways to improve. All of these is documented and audited by checking the evidence. While doing this repeatedly through one or two audits, the overall security for sure becomes better for the risks one is facing as every organisation faces some risks to their respective business. It could be as simple as the theft or it could be as complex as somebody doing a financial fraud. At the end of the day, the goal of IS audit is to minimise the risk in different areas of the business so that it continues to function unimpeded. <br />
	<br />
	<br />
	<strong>How affordable is such system for small to medium sized businesses? </strong><br />
	<br />
	<br />
	It is difficult to comment on their affordability, however, an IS audit can be customised as per the needs of an organisation. For example, an organisation may say that it only wants one of its departments to be certified for a certain certification. In that case, it can cut away pieces and then take the piece that it so needs. Therefore, it is affordable to many organisations and actually getting a certification like ISO 27001 is quite feasible for medium to large businesses. Even small businesses can afford the same if they are working in a very niche area and are the market leader in that <br />
	<strong><br />
	<br />
	What are the prospects you see in Nepal when you would want to work here? </strong><br />
	<br />
	<br />
	There are a lot of prospects. For example, a number of banks here are interested in IS audits so it’s my guess that we will tackle that shortly. They are interested in data centres so we will also look into that. Both these areas are our core business so we would be very happy to have customers in these areas. If there are clients who want us to do specific kinds of engagements, we would be able to do that provided such requirements are under the purview of law. Banking, energy and industrial sectors are areas we are currently looking at right now. <br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Rajesh Deo is a Security Analyst in the Technical Assessment Team at NII Consulting, a well-established provider of information security services and products, based in Mumbai, India.',
			'sortorder' => '553',
			'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) 10 => array(
		'Article' => array(
			'id' => '652',
			'article_category_id' => '38',
			'title' => 'ISO & Management System Certification',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong><img alt="julymanagement" border="1" height="146" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/july11management.jpg" vspace="5" width="300" /><br />
	<br />
	<br />
	</strong><br />
	The primary aim of the Quality Management System certification is to ensure consistent quality product and customer satisfaction simultaneously to fulfill the statutory and regulatory requirements with respect to the products and services ISO (International Organization for Standardization) is a nongovernmental organization whose main functions are to formulate, revise, adopt and update various standards. These standards may be applicable for all the member countries of the world. Its head office is in Geneva, Switzerland and around 165 countries are its members. Nepal Bureau of Standards &amp; Metrology represents the membership of ISO from Nepal. ISO has formulated more than 24,000 standards which include basic standards, product standards, test method standards and management system standards. <br />
	 </p>
<p>
	<strong><img alt="ISO Management" border="1" height="121" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/july_management.jpg" vspace="5" width="400" /></strong></p>
<p>
	 </p>
<p>
	In the management field, ISO has formulated Quality Management System standards (ISO9000 series), Environmental Management System standards (ISO14001-2004), Food Safety Management System standards (ISO22000: 2005) etc. ISO does not do any job with respect to certification and such activities are carried out by different certification bodies. These certification bodies are accredited from accreditation bodies. One certification body may have the accreditation from one or more accreditation bodies. There is one accreditation body named NABCB in India. There are hundreds of certification bodies under the umbrella of one accreditation body and these bodies are responsible to their accreditation bodies. <br />
	<br />
	<br />
	If any weaknesses are found on the part of certification bodies while awarding management system certificates like ISO9001-2008, the respective accreditation bodies take action against those certification bodies. The licence of certification bodies can even be cancelled from accreditation bodies in case of severe failure. The ISO does not have anything to do with this. These accreditation bodies are under the umbrella of International Accreditation Forum (IAF) that conforms to the guidelines developed by the ISO. Series of Quality Management System standards i.e. ISO9000 series was formulated by the ISO for the first time in 1987 with ISO9000, ISO9001, ISO9002, ISO9003, and ISO9004 with many others in this series. In this series, the certifiable standards were ISO9001, ISO9002 and ISO9003.This series was revised first in 1994 with little amendments, second time in 2000 with the remarkable revision by merging all three certifiable standards in one i.e. ISO9001-2000. The structure and some of the requirements have been changed and added during this time. There is no provision of ISO9002 and ISO9003 after this period. The third revision was made in 2008 with some revision including the control of outsourced process. The ISO 9001-2008 minutely looks at whether consistent quality products are produced and the overall management system of the organisation are met at the highest degree during organisational operation. Those companies meeting the requirements are awarded with the ISO 9001:2008 certificate by the certification bodies. <br />
	<br />
	<br />
	The primary aim of the Quality Management System certification is to ensure consistent quality product and customer satisfaction simultaneously to fulfill the statutory and regulatory requirements with respect to the products and services. The requirements of consumers are taken as the input and the organisation adds values to the requirement through different processes that eventually produces a product that has the capacity to satisfy customers. Quality Management System Requirement i.e. ISO9001- 2008 certification is not a medal of honour. However, it gives organisations the potential to become more cost effective and efficient. Similarly, it arms organisations with a powerful competitive tool that helps ensure consistent quality products and enhancement of customer satisfaction. <br />
	<br />
	<br />
	A company with well maintained and qualitative managerial practices is expected to produce quality goods and services. The ultimate goal of the certification is to ensure consistent quality products used or consumed by consumers that lead to ultimate customer satisfaction. The company may be certified for its Quality Management System, Environmental Management System, Food Safety Management System (in case of food industry only), Information Security Management System or any other management system standards developed by the ISO. Among these standards, Quality Management System Standard i.e. ISO9001-2008 is the most popular all over the world. It is a generic standard and is applicable to all types of organizations regardless of their size, nature of product and processes. Till the end of 2011, almost 1.2 million companies have been certified with ISO9001-2008 and almost 250,000 companies with ISO14001-2004 around the globe. In the context of Nepal, approximately 600 organizations have been certified with ISO9001-2008, 30 with ISO 14001-2004, 15 with ISO 22000-2005, and a very little number with Occupational Health and Safety Management System, Social Accountability. <br />
	<br />
	<br />
	There is no organization in Nepal that maintains data on the number of ISO management system standard certified companies in the country. The validity of the certificate is three years and there is surveillance audit every 9-12 months. In our context, some companies are missing the surveillance audit and in worst cases, a few are publishing advertisements even after the expiry of the certificate. So, the above mentioned number is only an approximation. Among them, a handful of companies have not renewed their standard certificates. <br />
	<br />
	<br />
	If a company is found misusing the expired certificate, the certification body may take legal actions upon receiving complaints. There is no legal authority in the country to look after these complaints even if some certified organization or certification bodies are indulging in malpractices. Monitoring is sorely missing in Nepal. There have been cases of awarding ISO management system certificates in the bordering areas where the certificate was given to those companies that do not comply with many of the requirements. In India, the accreditation body NABCB has brought a good change in this field by taking action against certification bodies whose performance is very poor. <br />
	<br />
	<br />
	It is the need of the time to establish one accreditation board in Nepal which can look after all types of Management System Certification bodies including laboratories accreditation. Around a decade ago, Nepali companies had to rely upon consultancies from India and third countries. However, some certification bodies have established their branches in Nepal at present while some others are operating directly in the country. The benefits of having the branches set up in Nepal are numerous on the part of revenue collection for the government and easy flow of information to stakeholders. <br />
	<br />
	<br />
	In conclusion, the management system certifications have brought positive improvements in many organizations even during adverse conditions such as political instability, power shortage, labour unrest etc although there is a lot of space for improvement in the consulting, certification and regulatory parts from the government side. <br />
	<br />
	<br />
	Bhandari is the Director of Quality and Environment Management Services Pvt Ltd and ISO 9001:2008 certified auditor. He can be reached via email at bhandaripomraj@ yahoo.com <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'The primary aim of the Quality Management System certification is to ensure consistent quality product and customer satisfaction simultaneously to fulfill the statutory and regulatory requirements with respect to the products and services ISO (International Organization for Standardization) is a nongovernmental organization whose main functions are to formulate, revise, adopt and update various standards. These standards may be applicable for all the member countries of the world. Its head office is in Geneva, Switzerland and around 165 countries are its members. Nepal Bureau of Standards & Metrology represents the membership of ISO from Nepal. ISO has formulated more than 24,000 standards which include basic standards, product standards, test method standards and management system standards.',
			'sortorder' => '552',
			'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) 11 => array(
		'Article' => array(
			'id' => '651',
			'article_category_id' => '39',
			'title' => 'Arun Valley HDC : For Rural Electrification',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="corporate focus" border="1" height="285" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/julycorporatefocus.jpg" vspace="5" width="400" /><br />
	<br />
	<strong>“Piluwa Khola Small Hydropower Project is an exemplary hydropower project developed by the private sector.” </strong><br />
	<br />
	<img alt="ramesh neupane" border="1" height="230" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/corporateimages.jpg" vspace="5" width="200" /><br />
	<br />
	<strong>RAMESH NEUPANE <br />
	Managing Director, AVHDC </strong><br />
	<br />
	<br />
	<br />
	“Domestic capital and technology are sufficient to rescue the country from the present energy crisis,” Ramesh Neupane, Managing Director of Arun Valley Hydropower Development Company (AVHDC) asserts. The rationale for this claim is: his company has built a 3-MW Piluwa Khola Small Hydropower Project in Sankhuwasabha district within 36 months. Out of the total 75, there are 40 districts in Nepal suitable and feasible for electricity generation. If a 5-MW plant is established in each of these districts, about 200-MW of energy will be added to the national grid within three years. When private sector adds 200 MW of power every three years, it is very possible that the same force can liberate Nepal from the energy crisis within a short period of time. <br />
	<br />
	According to Neupane, such a target can be achieved only if the government motivates the private sector. He underscored six points on making hydropower a centre of attraction for investment. First, the government should extend the license period from existing 35 years to at least 50 years for hydropower projects over 5 MW while the projects below it should be allowed to own the project for a lifetime. Second, Nepal Electricity Authority (NEA) must amend and increase electricity purchase rate in line with the inflation rate. “Price of electricity should be determined on the basis of demand and supply. NEA should increase the electricity tariff to the customers and with this effect, should also provide reasonable price to hydropower project developers,” he said. Third, the government should exempt VAT to hydropower projects. Investment in hydropower projects should be declared as tax free business till the country does not have sufficient power. This will help to attract investment into this sector. Fourth, Hydropower Finance and Development company of the government should be activated and provide long term loans on subsidised rates to the projects. Also, the capital market has to be liberal to raise funds from potential Nepali investors by issuing shares and debentures. Foreign investors should be attracted to invest in hydropower projects and allowed to trade shares in Nepal’s stock market. Fifth, the government should provide security to all projects. <br />
	<br />
	The cost of the security staffs has to be borne by the government and some field allowances are to be paid by the developers. Lastly, the government should build high voltage transmission lines from North to South to transmit energy generated in the Northern region to the Southern market of Nepal. Private sector investment in BT and/ or BOT model has to be allowed and this work should get higher priority. Additionally, Nepali energy system has to be connected with the Indian system so that energy can be imported when there is shortage and supplied when there is a surplus. Therefore, the construction of Nepal-India Cross Border Transmission Line is the urgent demand of the nation. <br />
	<br />
	In putting forward these constructive suggestions, Neupane speaks of his company’s experience as the pioneer company to introduce the concept of developing hydropower projects from the private investment in Nepal. In 1997, when the entire country was in the grip of Maoist insurgency, a group of people dared to establish Arun Valley Hydropower Development Company believing that it is possible for the private sector to build capital intensive projects such as hydropower provided there is a favourable environment, laws and policies for investment. The objective behind the establishment of Arun Valley was to construct, develop and operate small hydropower projects utilising domestic resources, technology and capital. <br />
	<br />
	When they planned to embark on their first project - Piluwa Khola Small Hydropower Project - they not only had to face difficulty to get the government’s support but also to fetch finance for it. When the AVHDC team approached the then Minister for Water Resources Sailaja Acharya with the concept, she expressed her surprise over the idea of a private sector company developing hydropower projects. But, impressed with their innovative concept, she pleaded help in every step of their project development. Their follow-ups in the Ministry of Water Resources bore fruits when NEA started to sign Power Purchase Agreement (PPA) with the private power developers. <br />
	<br />
	The team got a survey license from the Department of Electricity Development (DoED) of NEA to conduct feasibility study of Piluwa Khola Small Hydropower Project in Sankhuwasabha district. After completion of the survey, they applied for PPA. Minister Acharya helped them in getting a rate of Rs 3.0 for the wet season and Rs 4.25 for the dry season with an escalation of 6 percent for a period of five years. The escalation was supposed to be revised after five years but has not taken place till date, said Neupane. At that time, another setback was to find loan capital for the project. The project was planned with 30 per cent equity of the company and arranging 70 per cent loan from banks and financial institutions (BFIs). “As hydropower projects were the new investment area for the Nepali commercial banks, they were not ready to provide us loan in the initial phase,” said Neupane. Most of the BFIs doubted whether a private company can actually build and complete a hydropower project and will be able to pay back the loan amount. Finally, Manoj Goyal, the then CEO of the Bank of Kathmandu (BoK) took the risk and the first project of the company was financed and completed within the targeted time frame of 36 months. The project construction work was started in February 2001 and was completed in June 2003 while commercial operation started from August 2003. Arun Valley now has its own land and office building at Milan Chowk of Baneshwor and is listed in Nepal Stock Exchange.<br />
	<br />
	“The share price of this company ranges between Rs 300 and Rs 400 and the company claims that the market price of an Arun Valley Hydropower Company share will not be less than Rs 1000 upon the completion of Kabeli B1 Hydropower Project. “Piluwa Khola Small Hydropower Project is an exemplary hydropower project developed by the private sector,” argues Neupane. The company has been regularly distributing dividends to the shareholders of the company for the last seven years. “Investors have already got the return of their initial investment on the project. What they are getting now is their bonus,” shares Neupane. The second project of AVHDC is Kabeli-B1 Hydroelectric Project on Kabeli River flowing through the border of Taplejung and Panchthar districts. The project has completed the detailed feasibility study. The run-of-river project with an installed capacity of 25 MW, will sign PPA with the NEA within mid July. “The total project cost is estimated to be Rs 3,500 million. Of this total investment, 70 percent (Rs 2,450 million) will be raised from bank loan and the remaining Rs 1,050 million from the equity of share holders,” said Neupane. The company will issue rights shares to its existing shareholders to finance this project. <br />
	<br />
	A new company named Arun Kabeli Power Limited has been established as Arun Valley’s sister company to look after this project. “We have acquired 50 ropanis of land for the project and will be floating 39 per cent of the project company’s shares to the strategic partners in the beginning of next fiscal year,” said Neupane. Arun Valley Hydropower Development Company Limited will hold 51 per cent share of the project while the local people will have the opportunity to invest up to 10 per cent of the equity investment in this project. <br />
	<br />
	Lower Pheme Khola Small Hydropower Project is the second under construction project of the company located in the Mechi corridor. The project with an estimated cost of Rs 436 million has also reached the stage of PPA signing. “We will begin construction work immediately after signing the PPA,” said Neupane. <br />
	<br />
	The third project under development, Upper Piluwa Khola Small Hydropower Project, is being developed by Upper Piluwa Khola Hydropower Company Limited. AVHDC has the majority shares of this company. The project will be developed by setting-up a diversion weir from five kilometre up-stream of existing Piluwa Khola Small Hydropower Project. The project with an installed capacity of 9.6 MW has also reached the stage of PPA signing. Talking about the uniqueness of his company, Neupane shares that his company has more than 22,000 big and small shareholders. The company is in favour of mobilizing large number of people as investors in hydropower projects. The size of investment is as low as Rs 100,000. The company strives to keep the project construction costs low, complete the projects on time and distribute dividends to shareholders. Arun Valley is committed to utilise domestic capital, resources and technology to the optimum level and give relief to the country from prolonged hours of load-shedding even during the monsoon. “We have bid goodbye to load shedding in Gulmi and Sankhuwasabha districts. It is our vision now to lift the entire country from the existing energy crisis,” shares Neupane.<br />
	<br />
	It is his understanding that entrepreneurship, dedication and hardworking makes any project a success. “The technology for generating power from the running mountain water is well proven. We simply follow the art of technology,” he said. Neupane supports the idea of Foreign Direct Investment (FDI) to cash Nepal’s optimum potential in hydropower sector. He believes that the present political instability is the main impediment in attracting FDI in Nepal. “The first thing foreign investors consider is the risk involved in their investment. To minimise the risk, the government should sign a Power Development Agreement (PDA) with all the big and small project developers as well as local and foreign investors,” said Neupane. According to him, FDI will increase if the government requests foreign investors to invest in Nepal by agreeing to guarantee the security of their investments. The company also plans to attract new investors to invest in its new power projects namely Kable B-1 (25 MW), Upper Piluwa Khola (9.6 MW) and Lower Pheme Khola (3.5MW). <br />
	<br />
	<br />
	<strong>Swot Analysis <br />
	<br />
	<br />
	STRENGTHS </strong><br />
	<br />
	<br />
	• Motivated staffs <br />
	<br />
	• Stability of the company <br />
	<br />
	• Loan free company <br />
	<br />
	• Listed in the Nepal Stock exchange <br />
	<br />
	<br />
	<strong><br />
	WEAKNESSES </strong><br />
	<br />
	<br />
	• Employee turnover <br />
	<br />
	• Difference of thought between developers <br />
	<br />
	<br />
	<strong>OPPORTUNITIES <br />
	</strong><br />
	<br />
	• Developing partnership with local government <br />
	<br />
	• Developing projects with foreign investors <br />
	<br />
	<br />
	<strong>THREATS </strong><br />
	<br />
	• Unhealthy competition <br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-09-17',
			'keywords' => '',
			'description' => '“Domestic capital and technology are sufficient to rescue the country from the present energy crisis,” Ramesh Neupane, Managing Director of Arun Valley Hydropower Development Company (AVHDC) asserts. The rationale for this claim is: his company has built a 3-MW Piluwa Khola Small Hydropower Project in Sankhuwasabha district within 36 months. Out of the total 75, there are 40 districts in Nepal suitable and feasible for electricity generation. If a 5-MW plant is established in each of these districts, about 200-MW of energy will be added to the national grid within three years. When private sector adds 200 MW of power every three years, it is very possible that the same force can liberate Nepal from the energy crisis within a short period of time.',
			'sortorder' => '551',
			'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) 12 => array(
		'Article' => array(
			'id' => '650',
			'article_category_id' => '40',
			'title' => 'Open Skies Of Nepal',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Pinaki Roy <br />
	<br />
	</strong><br />
	<img alt="coverstory july" border="1" height="217" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/coverstory(1).jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	The flow of international passengers in the first quarter of 2012 has been impressive enough to raise optimism among the concerned stakeholders. The statistics between January and March 2012 is an indication that international air service and passenger movement to and from Nepal is set to register a significant increase this year compared to 2011. A total of 717,182 international passengers (see table) availed air services via Tribhuvan International Airport (TIA) – the only international airport of Nepal – in the first three months of 2012, says Raj Bahadur Maharjan, Director at TIA’s Flight Approval Department. <br />
	<br />
	<br />
	There has been an increase of 84,459 passengers when compared to the first quarter of 2011, thereby registering a growth of 13.35 per cent over the same period of the previous year. Monetarily speaking, the total annual international flight service business in Nepal is worth an estiamted Rs 80 billion. <br />
	<br />
	<br />
	Ratish Chandra Lal Suman, General Manager at TIA, says, “The number of passengers has increased in the first quarter of this year also because of new airlines coming into operation and providing added air services.” He attributes the increment both to the increase in inbound tourists and the outbound migrant workers to different countries. Even though GMG Airlines towards the end of 2011 and Kingfisher Airlines in February 2012 ceased to operate in Nepal, their absence was promptly compensated by Indigo (October 2011) and RAK Airways (February 2012). <br />
	<br />
	<br />
	The number of flights that served these passengers was 5,693 (up by 9.69 per cent from 5,190 flights during the same period last year). While 2,846 flights made outbound journeys, the number of flights that landed at the TIA stood at 2,847. A total of 368,934 passengers flew out of Nepal while another 348,248 landed in the country from January to March this year, a growth of 11.48 per cent and 15.40 per cent respectively when compared to the same period of 2011. In the first quarter of the previous year, 330,954 passengers took outbound flights while another 301,769 passengers entered Nepal via inbound flights making a total of 632,723 passengers who availed international air services from January to March 2011. <br />
	<br />
	<br />
	This growth is certainly encouraging coming at a time when the International Air Transport Association (IATA) left this year’s global airline profit forecast unchanged at $3 billion, or 0.5 per cent of industry revenues. At a summit of airline chiefs being held this year in Beijing, this stable outlook masks a widening gap between regions with “only North and South America set to improve and the rest of the world seeing reduced profitability.” <br />
	<br />
	<br />
	<strong>The Year Gone By <br />
	</strong><br />
	<br />
	International air passengers flying via the Nepali sky crossed 2.7 million for the first time in 2011. These passengers travelled via Nepal with 28 international airlines operating in Nepal last year, according to Maharjan. He said that additional airlines such as IndiGo, added frequency of flights and passenger occupancy increased the number of air passengers using the Nepali route. The year 2011 saw 2.7 million international passengers flying out and landing in the country on board 22,791 flights. A total of 28 airlines flew 2,700,027 passengers (see table) for the year, says Maharjan. This was an increase of 10.81 per cent in comparison to 2010 when 2,436,558 passengers availed international air services in Nepal. <br />
	<br />
	<br />
	While 1,407,512 passengers flew out of the country, the passengers entering the country numbered 1,292,515. A total of 11,393 flights departed while 11,398 flights entered Nepal during the period making a total of 22,791 flights for the year. The only new airline that started operations in 2011 was Indigo. Qatar Airways carried the most number of passengers – 277,796 on 2,374 flights while Jet Airways was second with 272,560 passengers on 2,191 flights. Nepal Airlines Corporation was third with 202,041 passengers on 1,619 flights. <br />
	<br />
	<strong><br />
	Migrant Worker: The Main Market </strong><br />
	<br />
	<br />
	With more Nepalis departing for jobs abroad and increase in tourist movement, international airlines operating in Nepal have witnessed this rise in passenger movement in recent times. The airline companies claim that they are equally focusing on all the segments, which include business travellers, tourist, VFR (visiting-friends and relatives) and workers. However, it’s no secret that migrant workers comprise around 80 percent of the total passengers availing international air services in Nepal. Most of the international airlines flying to and from Nepal are more focused on manpower markets rather than the tourism markets. Of the total international flights, the airliners carry only 20 per cent tourists, observe industry analysts. <br />
	<br />
	<br />
	<strong>Contribution to Tourism </strong><br />
	<br />
	<br />
	International carriers from India accounted for the largest share of inbound tourism in Nepal in the previous year. According to TIA, Indian carriers flew around 48 per cent of all tourists visiting Nepal in 2011 – dubbed as Nepal Tourism Year (NTY). Indian travellers alone grew by 39 percent to 145,338 in 2011, a 26.67 percent share in total tourist arrivals to Nepal. As per TIA statistics, five Indian airlines—Spice Jet, Jet Airways, Air India, Jet Lite and Kingfisher—figured among the top 10 carriers bringing tourists to Nepal. The total tourist arrivals via air numbered 544,985 in 2011 that entered Nepal on board 28 international airlines. <br />
	<br />
	<br />
	Indian budget airline Spice Jet – that started flying to Nepal in October 2010 – was the largest carrier of tourists into Nepal in 2011, accounting for 15.28 percent of the arrivals. Jet Airways and Air India were the second and third largest tourist carriers respectively accounting for 12 percent and 8 percent tourist arrivals. Two legacy carriers—Thai Airways and Qatar Airways—fell in the inbound tourism rankings in 2011. While Thai’s market share shrunk to 8 percent from 11 percent in the previous year, the share of Qatar Airways slipped to 7 percent. Etihad Airways and Gulf Air, two more carriers from the Middle East, lost their slots in the top 10 list in 2011. <br />
	<br />
	<br />
	The healthy growth of Indian tourists to Nepal attracted yet another Indian private airliner Indigo Airlines that started New Delhi-Kathmandu flights in October last year making it the sixth Indian private airliner flying between Nepal and India. Currently, Air India, Jet Airways, Jet Lite, Spice Jet and Indigo fly around 130 flights a week between Kathmandu and various Indian destinations while Kingfisher Airlines has stopped flying to Nepal for the last few months. Needless to say, the increase in the number of Indian airliners flying to Kathmandu has encouraged the aviation sector in Nepal immensely and boosted the country’s tourism prospects. A total of 207,961 tourists entered Nepal via air in the first four months of 2012, a growth of 23.1 per cent over the same period last year. A total of 168,958 tourists had entered Nepal from January to April in 2011. <br />
	<br />
	<br />
	<strong>Direct Flights <br />
	</strong><br />
	<br />
	Broadly, any business or industry can be categorised either as monopoly or market-oriented. Due to the inherent nature of international air transport industry, every country enjoys certain exclusive rights, which indirectly helps them monopolise some air routes. This right, if exercised, could be of tremendous benefit to a country like Nepal. “Direct flights between Nepal and other countries can play a key role in bringing increased number of tourists into our country,” an industry insider opines. <br />
	<br />
	<br />
	For instance, none of the 27 airlines flying into Nepal have the right to operate direct long distance flights between Nepal and lucrative destinations like Europe, Japan and Australia. They can operate only connecting flights whereas Nepal gets the sole privilege of operating direct international flights from the country. As foreign travellers have no choice of direct air connectivity, air travel costs become higher while coming to Nepal. Mihin Lanka, a Sri Lanka-based airline has expressed its interest to operate direct flights between Colombo and Kathmandu. This was conveyed to Prime Minister Baburam Bhattarai by Lankan President Mahinda Rajapaksa on the sidelines of the recently concluded environmental summit in Rio de Janeiro, Brazil. Air Service Agreement (ASA) between Nepal and Sri Lanka allows Sri Lanka-based airlines to operate up to 14 flights a week in the Colombo-Kathmandu-Colombo sector. <br />
	<br />
	<br />
	<strong>State of the National Carrier </strong><br />
	<br />
	<br />
	The status of the national carrier – Nepal Airlines Corporation (NAC) – in terms of international flight operations is disappointing to say the least. Around 95 percent of the international aviation market in Nepal is in the hands of foreign air operators. “Our market share is worth less than Rs 4 billion out of the international flight service business of Rs 80 billion annually,” says NAC Spokesperson Saroj Kasaju. The market share of NAC shrank to an all-time low in 2011 in terms of tourist carriage. The national flag carrier held the 10th position with a mere 3.05 percent while it had a market share of 4.87 percent in 2010. The eroding market share of NAC, according to travel trade entrepreneurs, is due to its inability to expand its fleet while the fact remains that the prerequisite for business expansion in airline industry is acquisition of aircraft, especially for operation in the lucrative international sector. In 2001, NAC was a leading carrier accounting for 28 percent of inbound tourists. <br />
	<br />
	<br />
	With more international airlines entering the Nepali skies and NAC’s track record of flight delays, travel agencies say the national flag carrier has become the last choice among visitors. Currently, NAC operates its international flights with two ageing Boeing 757s, either one of which is usually offline due to technical glitches and periodic C-checks. The carrier now flies to only five international sectors – Dubai, Doha, Bangkok, Kuala Lumpur and Hong Kong – down from 21 destinations in 12 countries with four Boeings till 1993. The airline now plans to start flights to Damam in Saudi Arabia. It also plans to start flying to Kuala Lumpur seven-days-aweek besides launching direct flights to Doha, Qatar. <br />
	<br />
	<br />
	The corporation currently spends Rs 1.39 billion on repairs alone for the two planes – Boeing 757-9N ACA Karnali and ACB Gandaki – which it has in its ‘fleet’ right now, says Kasaju. “Out of the estimated income of Rs 4.52 billion from international flights in the current fiscal year, 23 per cent of the total amount has gone into the repairs of the two Boeings,” he adds. The cost of repairs has gone up considerably in the last five years due to the fast ageing of the two Boeings. This expense is several times more than what the private carriers spend on repairs and maintenance which is six to 10 per cent of their earnings from flights. <br />
	<br />
	<br />
	A strong and competitive national flag carrier can serve as a key vehicle of the country’s economic and tourism development. Kasaju says, “NAC has become a factory without machines due to lack of aircraft but hasn’t gone in loss yet.” He cautions though that the corporation can land in major financial trouble if aircraft is still not added to its fleet. <br />
	<br />
	<br />
	However, all is not lost as Kasaju reiterates that the corporation is still making profit thanks mainly to its ground handling business. The corporation provides such service to 23 foreign airlines that fly to Nepal. From a domestic perspective, the corporation is expected to get five units of 19-seater aircraft and three units of 56-seater aircraft from China on grants and concessional loan. The airline management is scared of an imminent demise of the company as its current basis of survival – ground handling business – is in jeopardy due to a move by the Civil Aviation Authority of Nepal (CAAN) to possibly involve the private sector and allow competition. <br />
	<br />
	<strong><br />
	Ground Handling Services at TIA </strong><br />
	<br />
	<br />
	CAAN is currently holding discussions with other government agencies and stakeholders to allow the private sector to operate ground handling services at the TIA. It informed that it may soon allow private firms to operate ground handling services during the night time. Currently, NAC that provides ground handling services to almost all international airlines currently earns Rs 2 billion a year of which 10 percent is paid to CAAN as royalty. CAAN says that many international airlines and customers have complained about NAC’s ground support service. The complaints are mainly two: thefts and tampering with passengers’ luggage and higher ground handling charges of NAC in comparison with other international airports in the region. It is hopeful that the introduction of a private firm will enhance quality and manage congestion at TIA. “The Civil Aviation Authority Act 1996 and National Civil Aviation Policy 2063 state that the ground handling service should be competitive. Besides, the agreement with the corporation also does not restrict CAAN from appointing a private firm to manage ground handling services,” says Suman. He adds, “Due to NAC’s monopoly, the ground handling charges in our country are the most expensive in this region.” <br />
	<br />
	<br />
	The addition of one more ground handling service provider is expected to bring in competition and end the monopoly thereby resulting in quality service at lower service charge, adds Suman. TIA currently has the capacity to serve 8.2 million passengers a year and can serve up to 1,350 international passengers on an hourly basis. “We have not been able to serve to our total potential due to organisational inefficiencies. The number of flights out of TIA is less than half the capacity that we can accommodate,” Suman says. Meanwhile, NAC officials deny the charges and claim that the incidents of baggage theft and breakdown are minimized to internationally acceptable level. They also allege that some of these complaints are actually due to the fault of CAAN and other government agencies involved in the business such as the immigration department. According to them, some problems are due to lack of adequate infrastructure such as insufficient apron space for parking the craft which are forced to wait in the taxiway for long periods. Besides, inadequate number of boarding gates cause delays in boarding and confuse passengers on the correct conveyer belts to deliver the luggage are frequently out of order while the luggage weighing machines are not repaired on time. Insufficient number of toilets and chairs in the passenger waiting area add to passenger woes further. <br />
	<br />
	<br />
	The NAC management says that it’s not only the ground handling services that are expensive in Kathmandu. It gives examples of the fuel price and the charges that CAAN levies on account of aircraft landing, parking and navigation. The charges for CUTE used for passenger check-in too are high in Nepal than elsewhere, argue NAC executives. They point that the ground handling services in many other countries such as Thailand, UAE, Qatar, Malaysia and Hong Kong are provided by their national flag carriers either on their own or through subsidiaries. In Thailand, even the flight catering service is provided by the party that is recommended by Thai Airways, they say. <br />
	<br />
	<strong><br />
	Trans-Himalaya 2 Airspace <br />
	</strong><br />
	<br />
	Considering the increased air traffic at the TIA, CAAN is planning to operate the international airport 24 hours a day. This is expected to help in managing the increasing air traffic. Besides, it is also seeking an alternative location nearby Kathmandu for shifting the domestic airport from TIA to address the congestion. Likewise, it is also going to extend the domestic terminal building and make a separate car parking area for arriving passengers. <br />
	<br />
	<br />
	Nepal plans to ask India for the development of Trans-Himalaya 2 airspace (Hong Kong-Kunming- Guwahati-Kathmandu) connecting Southeast Asia, the Middle East and Europe in view of the increasing air traffic demand in Nepal. The route is one of the most lucrative routes for Nepal and if opened, it will be the shortest way from China and the Far East to the Middle East and Europe. The air distance from Kathmandu to Hong Kong will also be reduced. Implementation of this airspace will allow international airlines to fly over Nepali airspace, which means savings in fuel and distance for carriers flying this route and revenue for Nepal. “The airspace was discussed during Prime Minister Baburam Bhattarai’s visit to Delhi,” says Suresh Acharya, Joint Secretary at the Ministry of Culture, Tourism and Civil Aviation (MoTCA). According to him, India is positive about opening the proposed route. He adds that separate discussions need to be held with the Chinese government with regard to permission from the Chinese side for the opening of Trans-Himalaya 2 airspace. The opening of this proposed air route will have hundreds of international airlines use Nepali airspace and help the country to develop as a hub. CAAN officials add that the proposed route would be the shortest and could establish Nepal as an international transit point and result in enhanced air revenue for the country. The second international airport that the government has planned to construct in Nijgadh of Bara would be the greatest beneficiary in the event this air route comes into operation. Similarly, for aircraft entering Nepal’s air space, CAAN proposes Biratnagar (in the eastern region), Bhairahawa (in the western region) and Nepalgunj (in the mid-western region) as the three crossborder airspaces. Currently, Nepal has three incoming air routes—Simara, Kakkarbhitta from Paro in Bhutan and the Nonim air route from China. The Kathmandu-Mahendranagar-Delhi (L626) is the outgoing air route for international flights. Nepal is seeking new airspaces to ease traffic congestion, enhance information transmission, traffic regulations, emergency recovery of aircraft during accidents and automatic message switching system in its aviation sector. <br />
	<br />
	<br />
	The proposed route is more direct, safer, economical and efficient for flights between Europe, the Middle East and East Asia. These routes will reduce the congestion of westbound traffic flows across the Bay of Bengal. Experts claim that access to this international air space would give Nepal a huge opportunity to develop as a hub like India, the Maldives, Pakistan and Sri Lanka in South Asia. Maximum coverage of Nepal’s air space on long distance international flights via this proposed route could bring great benefits to the country if brought into operation <br />
	<br />
	<strong><br />
	The Way Forward </strong><br />
	<br />
	<br />
	As per the estimates of the International Civil Aviation Organisation (ICAO), an investment of US$ 100 in the air transport industry produces benefits worth US$ 325 for the economy, and 100 additional jobs in the air transport sector results in 610 new jobs across the wider economy. It further suggests that the air transport component of civil aviation accounts for more than 4.5 percent of the global GDP. As for the numbers, three carriers – AirAsia X, Malaysia Airlines and BB Airways – start operations in 2012. AirAsia X has already started operations while Malaysia Airlines and BB Airways are planning to operate international flights from September this year. It’s courtesy the competition among airlines on Kathmandu-Kuala Lumpur route as these three carriers unveiled plans to operate on the sector. The growing movement of Nepali migrant workers to and from Malaysia is one of the reasons luring airlines to fly on this sector. Statistics released by the Department of Foreign Employment shows that an average of 350 Nepali workers left for the Malaysian capital on a daily basis in the last fiscal year. While Malaysia Airlines is the national carrier of Malaysia, AirAsia X is a Malaysia-based budget carrier. ASA between Nepal and Malaysia allows Malaysian carriers to operate up to 21 flights a week. On the other hand, BB Airways is an upcoming local carrier promoted by TBI Group of Non Resident Nepalis (NRNs) in Japan which has already unveiled plans to operate scheduled flights on seven international routes including Kuala Lumpur. <br />
	<br />
	<br />
	There is an unlimited potentiality of the development of tourism and civil aviation sectors in the country. A well-equipped fullfledged international airport – where long-haul flights from Europe and America could directly land and take off – is needed for the development of the aviation and tourism sectors. In this context, a proposed fullfledged airport at Nijgadh can be an international hub for air transit and contribute substantially to the overall economy of Nepal. Nepal Investment Board (NIB) has already taken the initiative on projects related to the upgradation of TIA, and construction of a new airport in Nijgadh. It is estimated that the TIA upgrade will cost Rs 52.80 billion while the construction of the new airport in Nijgadh will cost Rs 45 billion. <br />
	<br />
	<br />
	<br />
	<br />
	<br />
	<strong>‘Gulf Air Provides Excellent Connectivity to a Large Number of Nepali Workers’ <br />
	<br />
	<br />
	<br />
	<img alt="" src="http://www.abhiyan.com.np/images/uploaded/renji-kurian-th_1343383001.jpg" /><br />
	<br />
	RENJI KURIAN THOMAS </strong> <strong><br />
	Country Manager <br />
	Gulf Air <br />
	<br />
	</strong> <br />
	<br />
	<strong>Can you share the rate of increase in passengers flying to and from Nepal over the years? <br />
	</strong> <br />
	There has been a steady growth of passengers over the years. As one of the major international airlines operating in Kathmandu, we have seen nearly a 20 per cent increase in the number of passengers in the first quarter of the year 2012. The latest report of Tribhuvan International Airport (TIA) also has our airlines figuring among the top four international airlines that have seen the strongest growth in passengers’ movement. Having started our operation in July 1998, we are now operating 12 flights between Bahrain and Kathmandu weekly. <br />
	<br />
	<br />
	<strong>How do you assess the quality of air service infrastructure in Nepal? <br />
	</strong> <br />
	The quality of air service is very good as the airport takes care of landings and take-offs for as many as 27 international airlines. However, there is always a scope for improvement with the increase in tourism traffic in Nepal. The airport has been working to improve its facilities further as such. <br />
	<br />
	<br />
	<strong>How has been the demand on the number of flights over the years? How are you managing the supply to meet the demand? <br />
	</strong> <br />
	The demand on this route is increasing steadily. By increasing our frequencies as well as operating large aircrafts periodically, we manage to accommodate more passengers. Gulf Air provides excellent connectivity to a large number of Nepali workers in the gulf region, particularly Saudi Arabia. We operate larger aircrafts as per the situation, especially when the demand is high. <br />
	<br />
	<br />
	<strong>What are your unique selling propositions? How aggressively are you marketing them? <br />
	</strong> <br />
	We have got the biggest network in the gulf region and several USPs to our credit. One of them is our schedule with excellent connectivity, for example, our split schedule of flights between Bahrain and Kathmandu offers very good travel options as it allows travelers to choose their own flight timings. In addition, Gulf Air’s seamless connectivity to Europe and the Far East via the Bahrain hub is an ideal choice for European customers travelling to Nepal or the Far East. Moreover, we are currently operating one of the youngest fleet with an average age of 5.2 years. This A320 fleet which operates between Bahrain and Kathmandu, offers ergonomically designed seats for travelers with maximum comfort, full flatbed seats on Falcon Gold class and the latest in-flight entertainment. <br />
	<br />
	Internationally, we are the first airline in the world to offer ‘Sky Hub’ that offers hi-speed broadband internet, mobile phone connectivity, live TV telecast, popular entertainment programs, sports channels and an array of movies, music and games. In addition to that, Gulf Air’s unique Sky Nanny and Sky Chef Services have received positive feedback from the customers. These services have helped us win the best ‘family friendly airline’ from US-based publications and the ‘best cabin crew’ award ranking from an IATA survey. <br />
	<br />
	<br />
	<strong>Airlines flying to Nepal are said to have very few business class seats. Is it true that airlines do not see prospects for business class market here? <br />
	</strong> <br />
	The aircrafts that we fly to Kathmandu are the same as the ones that fly on our other routes. We use a combination of narrow and wide body aircraft for flights to Kathmandu, depending on the traffic. We agree that the potentiality of business class market is not high in Nepal when compared to other regions. However, we offer 16 Falcon Gold Business class seats on our A320 fleet which has a configuration of 136 seats in total. The gold business class has full flat seats and several modern features for those who prefer stylish and luxurious travel. <br />
	<br />
	<br />
	<strong> What are your expansion plans? <br />
	</strong> <br />
	We do continuously look at the number of the passengers and market demands and decide accordingly. As said earlier, we have increased our frequencies and are also periodically operating larger aircraft to meet the seasonal and expanding market. <br />
	<br />
	<br />
	<strong>Most of the flights made to Nepal are targeting migrant workers. How sustainable is this policy? <br />
	</strong> <br />
	As mentioned in the TIA report, increased labor traffic accounts for around 80 percent of seat demand in all international airlines. All international carriers connecting to Nepal saw a robust increase due to this reason. We cater both to migrant workers and tourists. However, the majority of our traffic to Kathmandu is the migrant workforce working in the gulf countries. We foresee this trend to continue for some time to come. <br />
	<br />
	<br />
	<strong>What are your operational difficulties and facilities in Nepal? <br />
	</strong> <br />
	There are no operational difficulties except the weather of course. As you know, we are sometimes forced to divert our flights to nearby Indian airports due to unfavorable weather conditions such as dense, fog etc especially during winter. However, with our split schedule flights, we have better timings for landing in Kathmandu. <br />
	<br />
	<br />
	<strong>How are you managing your ground handling staff and crew members? <br />
	</strong> <br />
	We have Nepali speaking cabin crew in our team, who are deployed on the Kathmandu route most of the time so that our Nepali customers could feel at home. Almost all our staffs at the airport and city office are Nepalis. <br />
	<br />
	<br />
	<strong>How do you see the prospects of Nepal’s tourism sector? How is your airline contributing to it? <br />
	</strong> <br />
	Tourism is one of the main industries in Nepal. The Nepal Tourism Year 2011 was quite successful. Through International air passenger movement, Nepal grew 13.35 percent in the first three months of 2012 with high migrant workers and tourist traffic. Kathmandu is one of the major tourist destinations with thousands of foreigners visiting the country for a variety of reasons. <br />
	<br />
	The tourism sector is bound to expand as more and more people opt for unique and affordable destinations such as Nepal. We are able to connect more passengers than others to travel to Kathmandu via our Bahrain hub. The tourism campaigns or promotions by Nepali tourism authorities in the gulf countries can further help an increment in the tourist traffic to Nepal. I am proud to say that Gulf Air too has a role to play in the tourism development of Nepal as we cater to a large number of European tourists who find it convenient to fly with us. <br />
	<br />
	<br />
	<br />
	<strong>‘An International Airport at Nijgadh can help Establish Nepal as a Transit Hub’ <br />
	<br />
	<br />
	<br />
	<img alt="" src="http://www.abhiyan.com.np/images/uploaded/tri-ratna-manan_1343383130.jpg" /><br />
	<br />
	TRI RATNA MANANDHAR </strong> <strong><br />
	Director General <br />
	Civil Aviation Authority of Nepal (CAAN) <br />
	</strong> <br />
	<br />
	<strong><br />
	What is the current scenario of International flights operating in Nepal? </strong><br />
	<br />
	Earlier, we had altogether 28 operators conducting international flights. Among them, three operators namely GMG Airlines, Kingfisher Airlines and Bahrain Air postponed their flights. Simultaneously, three other operators namely BB Airways – a Nepali airliner – along with two airliners from Malaysia, Air Asia X and Malaysian national carrier Malaysia Airlines were included. Air Asia X is operating from July 3 while BB Airlines is to commence from September this year. That is to say, some airlines are withdrawing their flights while some others are commencing their operations soon. However, the numbers of operators are back to 28 as it was before. There are 33 other airlines waiting in the wings with their air service agreements (ASAs). <br />
	<br />
	<br />
	<strong>The infrastructure bottleneck is often the constraint to provide international standards services to the airlines flying to Kathmandu. What exactly is the situation? <br />
	</strong> <br />
	We must accept this fact. We are not being able to develop the infrastructure as per the growth of air traffic movements. That is why we are very often facing air traffic congestion at TIA. To address such problems, we are conducting various measures. First of all, a TIA Capacity Enhancement Project is going on with support from an ADB loan of US$ 70 million. CAAN itself is investing another US$ 30 million in the project. This US$ 100 million project will address the extension, expansion, and development of TIA which includes the civil infrastructures such as runway and taxiway extension, construction of additional parking bay etc. The development of equipment is another component that is also in our priority. These components are ATC automation and communication and navigation equipment. These tasks are part of the capacity enhancement project. We are also planning to separate domestic operators and shift them somewhere close to Kathmandu. Dhulikhel seems to be a possible location and a detailed feasibility study is being conducted for that purpose. We are looking at this alternative so that we can use the present TIA only for International operation. <br />
	<br />
	<br />
	<strong>How is CAAN addressing air traffic issues like landing and take-off, flow of flights and routes etc? <br />
	</strong> <br />
	We have some problems in the international air route and we are inviting Indian authorities to Nepal to hold discussions on this very soon. <br />
	<br />
	<br />
	<strong>How improved has the passenger handling capacity of TIA become in the recent years? <br />
	</strong> <br />
	We are continuously trying to improve our services. But I can’t say that the improvements are significant because of the limited facilities. Even the space is the same as we have been using before. Upon the completion of the ADB project, we would be able to enhance the passenger handling capacity and provide other facilities accordingly. <br />
	<br />
	<br />
	<strong>What happened to the plan of making TIA operational for 24-hours-a-day? <br />
	</strong> <br />
	We are continuously exercising to operate that way. But there are certain things to be considered like manpower planning, reliability of the radar etc which are essential in making TIA operate for 24-hours-a-day. Besides CAAN, the immigration authorities and the security establishments also need to be prepared for it. <br />
	<br />
	<br />
	<strong>What is the overall air service infrastructure situation of Nepal? <br />
	</strong> <br />
	In terms of airports and airport facilities, we (the Ministry of Culture, Tourism and Civil Aviation and CAAN) are aggressively involved in improving and increasing airport infrastructure. The project for constructing Gautam Buddha Regional International Airport at Bhairahawa is in the pipeline. The revised estimated cost for the project is US$ 77 million. Another project for a regional international airport in Pokhara is also proceeding for which China Exim bank has shown an interest to invest in. <br />
	<br />
	<br />
	<strong>How many of our airports are capable of handling international flights in terms of runways and other infrastructures in Nepal? <br />
	</strong> <br />
	Airports in Bhairahawa, Nepalgunj and Pokhara are capable for conducting cross border flights with India. They can operate in Indian cities like Lucknow, Varanasi, Delhi and Patna. As for fullfledged international operations, we only have TIA to look up to. <br />
	<br />
	<br />
	<strong>Experts say that lack of direct international flights from major tourist destinations have resulted in great loss for our tourism sector. What is CAAN doing about it? <br />
	</strong> <br />
	The entire aviation sector understands the value of direct international flights. The scenario of constructing Nijgadh International Airport has emerged due to this need. It’s been so many years that we are talking about constructing it but there is no achievement on this front so far. If the nation really wants to promote the tourism sector on a massive scale, a full-fledged international airport is a must as the present international airport (TIA) is not a full-fledged one. It has many constraints because of the terrain, runways and lack of other infrastructures. That is why it is not possible to operate long haul flights from the US and Europe. Landing a big aircraft is another impossibility given the present circumstances. If the tourists from countries in Europe and the US could travel directly to Nepal, it would have been convenient to us as well as the tourists. For instance, it takes a minimum of two stops and one has to spend more than 24 hours to travel from Europe to Kathmandu. All the pleasure and excitement is gone because the tourists feel exhausted and tired due to long flights. The travellers have to spend more hours in transit than on board the flights. <br />
	<br />
	We are unaware of the exact tourism potentiality of Nepal. The President of International Civil Aviation Organization (ICAO) visited Nepal recently. He was shocked to hear that we were able to bring only about 700,000 tourists against our target to bring in one million tourists during Nepal Tourism Year 2011. <br />
	<br />
	We will not be able to develop our tourism sector as desired if we depend entirely on TIA only. By constructing a full-fledged international airport at Nijgadh will not only enable us to operate long haul international flights but also help establish Nepal as a transit hub like Hong Kong and Bangkok. <br />
	<strong><br />
	<br />
	What do you have to say about the fifth freedom rights of international airliners operating in Nepal? </strong> <strong><br />
	</strong> <br />
	We assure such rights in the Air Service Agreement (ASA) with international operators. The recent controversy with Air Arabia on the fifth freedom rights is meaningless. As per the provision of an ASA between Nepal and UAE, it is their right to seek so. If the international operators do not get their fifth freedom rights, they cannot run their businesses. We can’t even imagine building the Nijgadh Airport leaving aside such rights. Fifth freedom rights will help develop Nepal establish itself as a transit hub. But these controversies are hardly true for some other international airlines. More than 90 per cent international airlines are enjoying fifth freedom rights, for instance, Druk air is operating a flight between Kathmandu and Bhutan via Delhi. <br />
	<br />
	<br />
	<strong>‘Dragonair is Bringing a lot of People into Nepal’ <br />
	<br />
	<br />
	<br />
	<img alt="" src="http://www.abhiyan.com.np/images/uploaded/thomas-bellamy_1343383224.jpg" /><br />
	<br />
	THOMAS BELLAMY </strong> <strong><br />
	Manager - Nepal <br />
	Hong Kong Dragon Airlines Ltd <br />
	</strong> <br />
	<br />
	<strong><br />
	Can you share the rate of increase in passengers flying to and from Nepal over the years? <br />
	<br />
	</strong> Dragon air started its operation in Nepal in 1989. The service was halted in 2001 and re-launched in 2007. We have gradually increased our frequency and now have daily flights. We have increased the aircraft size with the increase in passenger numbers. We are taking more passengers to China, Japan, Australia and the US. These are the big destinations for us. Dragonair is also bringing a lot of people into the country especially during the peak tourist season from September to April. <br />
	<br />
	<br />
	<strong>How do you assess the quality of air service infrastructure in Nepal? <br />
	</strong> <br />
	There have been some good changes at the TIA recently – for example, the new check-in desks and screens that have been installed at the international terminal. We hope for more improvements to be made in the future. It is very important to have a very strong main airport here in Kathmandu to act as a hub for inbound Nepali tourism. <br />
	<br />
	<br />
	<strong>What is the demand on the number of flights over the years? How is Dragon Air managing the supply to meet the demand? <br />
	</strong> <br />
	We have the capacity to meet the growing demands. There is enough demand to utilise the capacity and thus, we increased the frequency to a daily flight in September 2011. We are quite optimistic about Nepal and will continue to monitor such situations. From the tourism perspective, a lot depends on the stability of things here in Nepal. If Nepal can get good coverage in other countries, the travel agents and airlines will be more willing to promote Nepal and the number of passengers will increase as well. <br />
	<br />
	<br />
	<strong>How cooperative have the Nepali government institutions been in helping meet the market demands? <br />
	</strong> <br />
	I think the intentions are good. There are obviously a few constraints in Nepal, but many of these will fall off in a more stable environment. For now, we just need to continue working together to improve wherever we can and to focus on the positives. The Airlines Operating Committee which comprises airport representatives from most of the major carriers in Nepal continues to work with the relevant authorities to look for improvements wherever possible. <br />
	<br />
	<br />
	<strong>What are your unique selling points? How aggressively are you marketing them? <br />
	</strong> <br />
	One of the unique selling points of Dragonair is having Hong Kong as its hub. We have fantastic connections, and together with our sister airline Cathay Pacific, we are capable of connecting passengers to over 160 destinations worldwide. In Hong Kong, the minimum connecting time with Cathay Pacific has been reduced to 50 minutes which gives passengers more choice and convenience. There are many destinations from Hong Kong within a relatively short distance – half of the world’s population within five hours. On the long-haul side of things, we connect to New York four-times-daily. We look at the possible frequency rather than relying solely on our capacity. We want to give passengers more choice, which means provide more departure time wherever sustainable. <br />
	<br />
	Dragonair’s world-class service and quality products have long been recognised – we’ve won the Best Airline – China category for six consecutive years in the respected Skytrax passenger survey and we were also voted the “World’s Best Regional Airline” in 2010 and 2011. Dragonair’s major strength is China. We fly to 19 destinations in mainland China and operate about 400 flights a week. Adding to it, our sound safety record, well-trained and professional staff, and good on-time performance are the positive sides to focus on. <br />
	<br />
	<br />
	<strong>Airlines flying to Nepal are said to have very few business class seats. Is it true that airlines do not see prospects for business class market here? <br />
	</strong> <br />
	Asia has shown its ongoing potential and resilience in the face of the current global economic downturn. Until now, Nepal has widely been regarded as a leisure travel destination. We are optimistic that, with stability, business and industry here can grow and along with it, the demand for business travel will rise. We actually have a decent number of business class seats on our Airbus A330 aircraft, but it would of course be nice if passengers originating from Kathmandu could fill more of those seats. <br />
	<br />
	<br />
	<strong>What are your operational difficulties and privileges received in Nepal? <br />
	</strong> <br />
	The weather is always a challenge for airline operations and it is no exception here in Nepal. We have worked with the authorities and our own engineering teams to overcome the constraints we face here, so as to ensure timely operation as much as possible. This is particularly important in the context of the airport operating hours (the airport closes after midnight). The ever increasing number of tourists would definitely benefit from further improvements at the airport, and we will continue to support positive initiatives from the authorities in that direction. <br />
	<br />
	<br />
	<strong>It is said that operating in Nepal is very cheap despite having poor infrastructure. What are its advantages? <br />
	</strong> <br />
	While operational cost is one of the many factors, we look at running our business anywhere. We see Nepal more for its market potential i.e. its attractiveness as a destination and travel demand to other countries like US, Australia, Japan, Korea and of course Hong Kong and China. <br />
	<br />
	<br />
	<strong>What are your expansion plans? <br />
	</strong> <br />
	We continue to look forward to opportunities in Nepal and act accordingly in terms of available possibilities. We will increase frequency if we continue to see good growth in passenger numbers at sustainable yields. Basically, we will react to the situation, and we’re optimistic that the outlook for Nepal is bright. <br />
	<br />
	On a larger scale, Dragonair is adding six aircraft: four Airbus A320s and two Airbus A330s to the fleet this year - expanding the size of the Dragonair fleet from 32 to 38. Two additional A320s and one A330 have already entered the fleet this May. In terms of Dragonair’s network this year, we launched flights to Jeju on 01 May (three flights per week), to Chiang Mai on 01 July (four flights per week) and to Kolkata, India in winter 2012 (four flights per week). Flights were also resumed to Taichung on 14 May (twice daily), to Guilin on 01 May (daily), and Xian on 01 Apr (daily). <br />
	<br />
	<br />
	<strong>‘Thai Airways was the First Airline to Operate Jet Service to Nepal’ <br />
	<br />
	<br />
	<br />
	<img alt="" src="http://www.abhiyan.com.np/images/uploaded/chantouch-srini_1343383315.jpg" /><br />
	<br />
	CHANTOUCH SRINILTA </strong> <strong><br />
	General Manager <br />
	Nepal &amp; Bhutan <br />
	Thai Airways International Public <br />
	Company Limited <br />
	</strong> <br />
	<br />
	<br />
	<strong>You are going to complete 44 years of operation in Nepal. How has been the journey so far? <br />
	</strong> <br />
	The history of Thai Airways International in Nepal dates back to 1968 when the inhabitants of Kathmandu had their first glimpse of THAI’s 72-seater French built Caravelle SE210 aircraft which touched the unfamiliar runway of Tribhuvan International Airport (TIA). We are going to complete 44 years of our operation in Nepal this year. <br />
	<br />
	THAI was the first-ever airline to operate jet service from Kathmandu and the airline that opened up the forbidden Himalayan Kingdom as a new tourist destination to the world. It was a spectacular and memorable event in the Nepali Aviation history. <br />
	<br />
	THAI also introduced the first computerized reservation system in Kathmandu in February 1985 and provided this facility to its leading travel agents since 1990. Royal Orchid Lounge at the TIA used to be the only lounge operated by THAI in the 1990s. However, after Nepal Government adopted liberal sky policy, many other international airlines joined the race. Our monopoly market share has been diluted a little bit but we are enjoying the competition. It has given us the opportunity to prove ourselves as the first choice carrier in terms of our fleet size and service standards. <br />
	<br />
	<br />
	<strong>What is the demand status on the number of flights over the years? How are you managing the supply to meet the demand? <br />
	</strong> <br />
	Being a pioneer and well renowned carrier, THAI always had the strategy to adjust the number of flights as per market demand. In the beginning, we operated once a week flight between Bangkok and Kathmandu and soon after that, one more flight was added to cope with the high demand of passengers. THAI started daily flights with A300-600 aircraft since the end of October 1997. In the context of growing demand of air seats to/from Nepal, we added three more flights in 2008. Based on the request of different tourism related associations like NATTA, PATA, HAN and NTB, we began to run 10 flights per week. Now we have seven flights a week with a configuration of 30 business class and 279 economy class seats. <br />
	<br />
	<strong><br />
	Thailand has been one of the most popular destinations for outbound tourism for the Nepalis. What is Thai Airways’ contribution to it? <br />
	</strong> <br />
	Thai Airways has played a leading role in the development of tourism not only in Thailand but also in helping Nepal in worldwide promotion as a major tourist destination through various media like our in-flight magazine “Sawadee” and Royal Orchid Holiday Packages tours. Besides performance, punctuality, and silk class services to our valued customers, we have joined hands with the Tourism Authority of Thailand by frequently organizing different events like Trade Fairs, Educational/ Medical fairs, familiarization trips for agents and media, Thai Food festivals, Thai Puppet shows etc. We also offer attractive packages and special fares for students and leisure travelers. <br />
	<br />
	<br />
	<strong>How has Thai Airways been promoting Nepal at the international level? <br />
	</strong> <br />
	Thai Airways was the first airline to operate jet service to Nepal and introduce this country to the world. These days, many airlines are inspired to operate their services in this country due to our successful operation for the past 44 years. THAI had actively participated in “Visit Nepal Year 1997” and spread good word all over to promote “Nepal Tourism Year 2011” as well. We joined hands with the organizers of Asian Mountain Bike championship in 2008 by offering special fares to the participants all around the world. In addition, we organized a big puja same year to introduce Lumbini to the pilgrims from all around the world. This year, we are going to sponsor the famous Nepali musical group “Sur Sudha” to perform in Thailand. <br />
	<br />
	<br />
	<strong>How cooperative are the Nepali Government institutions in helping meet the demands from this market? <br />
	</strong> <br />
	Thai Airways has been getting a very constructive support from the government bodies in Nepal. This is one of the reasons behind our uninterrupted service for the past 44 years. We have always been able to bring into operation the required number of flights connecting Kathmandu and Bangkok as per our market demand. This cooperation is good for both the countries in terms of tourism, economy, education and other sectors. We are thankful to the Nepal Government, NAC, CAAN, TIA, ATC, NTB, NATTA and PATA for the continued support extended towards THAI. <br />
	<br />
	<br />
	<strong>Most of the flights made to Nepal are targeting migrant workers. How sustainable is this policy? <br />
	</strong> <br />
	Labor traffic does not occupy a major business of our flight operations, it is only a partial business of our total occupancy. Since the very beginning, we have had different segments of traffic like the royalties, frequent flyers, government officials, diplomats, expats, students and the tourists. Labor traffic is also part of our business but as I said we don’t depend heavily on it. <br />
	<br />
	<br />
	<strong>What are the operational difficulties and facilities in Nepal? <br />
	</strong> <br />
	Lack of proper infrastructure, unstable government, political instability and unhealthy competition among budget airlines are the drawbacks hindering smooth operation of the renowned carriers such as THAI. <br />
	<br />
	<br />
	<strong>Operating in Nepal is said to be cheap. What is your experience? <br />
	</strong> <br />
	We do not think operating in Nepal is cheap. On the contrary, it is one of the most expensive in terms of ground handling, parking and landing, ground space, rental, ramp, fuel and all kind of other charges. <br />
	<br />
	<br />
	<strong> How are you managing your ground handling staff and crew members? <br />
	</strong> <br />
	THAI has its own handling service in Nepal. It has never compromised in quality services; therefore, we have our own operational, ground handling and administrative staff directly under the THAI set up of course. <br />
	<br />
	<br />
	<br />
	<br />
	<br />
	<strong><br />
	</strong></p>
<p>
	<strong>GSAs that Fuel the Business <br />
	<br />
	<br />
	By Gaurav Aryal </strong><br />
	<br />
	<br />
	Around 85 per cent of international airlines operating in Nepal have made their presence felt through a number of GSAs <br />
	<br />
	<br />
	International airline companies operating in Nepal prefer having a presence through their General Sales Agents (GSA) rather than having their local office stationed in the country. Around 85 per cent of international airlines operating in Nepal have made their presence felt through GSAs. Out of the 28 international airlines currently in operation, only four of them, namely Thai Airways, Air India, Qatar Airways and Etihad Airways have their country offices in Nepal. A source at a leading travel agency under the condition of anonymity said “It’s not only offline but also the online airlines that are operating through their GSAs in Nepal.” <br />
	<br />
	<br />
	Sunil Sharma, Managing Director at Society Travel Service Pvt Ltd said that offline GSAs could be of any number as travel agents have Special Prorate Agreement (SPA) with offline airlines on a code sharing basis. He said that such offline airlines carry transit passengers flying from Nepal to various sectors and destinations around the world. Sharma, who is also a GSA of RAK Airways said, “It would be a major headache for airline companies to have their office setup here and run after various things ranging from policies to issues regarding aviation fuel. The airlines feel it would be a waste of time as the documentation procedure here is difficult along with the bureaucratic hassles. GSAs have the knowhow about local issues and it would be easier for the airlines to operate through GSAs who are handed over with specific duties and responsibilities.” <br />
	<br />
	<br />
	Similarly, it is believed that the GSAs have a greater knowledge on the local market as they are the local partners that have been in existence for a long time. “GSAs bear expenses, mobilise local staff, have detailed information about the local market, and having a GSA is cost effective than having an airline office established here. So, the international airlines prefer having GSAs rather than setting up their local offices of their own,” said the source. GSAs, usually the agent for sales of air tickets, are also the partner for marketing the airlines they represent. The source said that airlines and agents in Nepal jointly carry out marketing campaigns for the airlines. According to the source, the travel agencies are lured to work as GSAs because they receive override commissions along with additional commissions and other benefits like travel certificates, and staff trainings among others. Sharma also said that GSAs work on override commission and set up office, hire staff required at the corporate office and even at the airport. However, ground handling is not allowed to be performed by GSAs as it is taken care of by Nepal Airlines Corporation for every airline other than Thai Airways and Air India. “The majority of the clientele of GSAs are anybody going abroad, be it tourists, migrant workers, students, business persons, visitors, expatriates and everybody else who is travelling,” said a source at a leading travel agency. The source added that the ratio of Nepalis to foreigner passengers is 75:25 per cent. Sharma said that the companies that work as GSAs for passenger segment are also the Cargo Sales Agents (CSA) with the respective airlines. Sources said that GSAs have been operating in Nepal for over three decades now. <br />
	<br />
	<br />
	However, sources said that it is difficult to exactly pin point the size of the GSA market and their respective market share because everything depends on the demand and supply of flights. They added that the demand and supply keeps on varying constantly. <br />
	<br />
	<br />
	The number of international air passengers flying to and from Nepal has increased over the years and so has the number of flights. In the first three months of this year, 717,182 international air passengers travelled via Nepal. According to the data of Nepal Tourism Board, 207,961 tourists arrived in Nepal via air route from January to April 2012. It is a 23.1 per cent increment from 168,958 tourist arrival during the same period of 2011. The major reason behind the increment in air passengers is the increase in tourist inflow and migrant workers going abroad in search of job opportunities, according to Ratish Chandra Lal Suman, General Manager at Tribhuvan International Airport. President Tours and Travels (PTT) represents around half-a-dozen airlines as their GSA. Gulf Air, Qantas Airways, Kenya Airways, United Airlines, Air Mauritius, Indigo Air are some of the airlines that it represents but PTT is the passenger sales agent for United Airlines and Indigo Air. Similarly, Zenith Travels Pvt Ltd, another travel agency represents Bahrain Air, Sri Lankan Airlines, Spice Jet, Turkish Airlines and Qatar Airways Cargo as their GSA. <br />
	<br />
	<br />
	<strong>New Airlines in Nepali Sky <br />
	<br />
	<br />
	By Dipa Baral <br />
	</strong><br />
	<br />
	AirAsia X has already started operations while Malaysia Airlines and BB Airways are planning to operate international flights from September this year <br />
	<br />
	<br />
	Nepal is on the way to become an international air hub, thanks to the rise in the number of tourists and labour traffic in the past few years. AirAsia X, the budget carrier of AirAsia, has already started operations from July 4 this year while Malaysian national carrier Malaysia Airlines and Kathmandu based BB Airways are planning to operate international flights from coming September. Besides, some prominent countries have shown interest to sign Air Service Agreements (ASAs) or to review the past ASAs with Nepal. AirAsia X has started scheduled flights between Malaysian capital Kuala Lumpur and Kathmandu two times a week i.e. Tuesdays and Thursdays and has plans to add two more flights from September this year. The airline has priced its ticket at Rs 11,000 (exclusive of taxes) for one way trip. “The ASA between Nepal and Malaysia allows Malaysian airliners to operate 21 flights a week. But, AirAsia X has taken the permission to operate seven flights a week at the most,” said Suresh Acharya, Head of Air Services Agreement, Airlines and Airport Operation Division at the Ministry of Culture, Tourism and Civil Aviation (MoTCA). <br />
	<br />
	<br />
	BB Airways, promoted by TBI Group of Non Resident Nepalis (NRNs) in Japan, will also operate flights from September 13 this year. The company has already brought a Boeing 757-200 (ER) on wet lease that will operate nine flights a week to Doha and Malaysia. “We will bring another aircraft of the same category after a month of our formal operation and operate 17 flights a week,” said Shishir Bhatta, CEO of BB Airways. The company will also add Singapore and Bangkok to its destinations after getting another aircraft on lease. <br />
	<br />
	<br />
	BB Airways had acquired a license for international operations from the MoTCA in the first week of January 2012. “We are aiming to promote Nepali identity all over the world through our international air service and aspire to place Nepal in the global travelling map,” said Bhatta. The airways has not made public its flight rates yet but informed that the ticket booking will be available both online and via travel agencies. <br />
	<br />
	<br />
	The third airline in the pipeline to commence international air service in Nepal is Malaysia Airlines, the national flag carrier of Malaysia. “It’s been more than a year since Malaysia Airlines obtained operating license from the ministry. It has plans to start flights from coming September,” said Acharya. The airline has a permission to operate seven flights a week between Nepal and Malaysia. Similarly, four countries— Vietnam, America, Australia and Indonesia—have shown interest to sign ASAs with Nepal while United Kingdom (UK), Jordan, Pakistan, Bhutan and United Arab Emirates (UAE) want to review their past ASAs. “We have not been able to translate the talk into action because of Nepal’s vague stance on fifth freedom. When the world is practicing freedom right up to the ninth, we are still arguing over granting fifth freedom right,” said Acharya. In December 2010, the government had to bar Air Arabia from exercising its fifth freedom right to fly on the Kathmandu- Kuala Lumpur sector at the eleventh hour following pressure from Nepal Airlines Corporation (NAC). The national flag carrier had claimed that the decision will make serious impact on its business. The case is now pending in the Supreme Court. “Rather than restricting the government from signing deals with international airlines, it must concentrate on its own capacity building and adopt aggressive marketing strategy,” said Acharya. He underscored the need of networking, partnership and alliance with other airlines to sustain in the present world. However, if NAC had believed that Air Arabia’s fifth freedom right would jeopardise its existence, it is yet to see what impact the entry of these three new airlines will make. “Once the new airlines commence operation, the competition will become even tougher because they will certainly end NAC’s monopoly in catering to the labour traffic. But, we cannot hold the market for NAC as the country has been practicing liberal sky policy. It is high time that NAC improved its services and got ready for competition,” said Acharya. <br />
	<br />
	<br />
	The MoTCA has also issued a 45-day public notice on May 25 inviting domestic operators to apply for international operation. The notice has invited applications for a chartered and a cargo flight each. Companies having paid-up capital of Rs 500 million and security bond of Rs 5 million can apply for the license by paying Rs 50,000 to the ministry and avail the document of Terms of Reference (ToR). The companies should also pay Rs 50,000 per route as royalty. <br />
	<br />
	<br />
	“So far, Siddartha International Airlines has applied to operate a chartered flight. But we hope to get some more applications as there is still enough time to apply,” said a high level official at the MoTCA. <br />
	<br />
	<br />
	<strong>Five Airlines: One Destination <br />
	<br />
	<br />
	By Sushila Budhathoki </strong><br />
	<br />
	<br />
	Nepal experienced the formal beginning of aviation in 1949 when a lone 4-seater Indian Beechcraft Bonanza aircraft arrived in Kathmandu <br />
	<br />
	<br />
	With 27 per cent arrivals and 14 per cent departures out of the total passenger movement in the year 2011, the airline companies originating from India contribute a large chunk of the international passenger movement in Nepal via its flights to Kathmandu. According to the TIA passenger manifest, the airlines from India registered passenger arrival numbering 354,738 out of the total of 1,292,515 passengers that landed in Nepal and 377,867 departures out of the total 1,407,512 departing passengers. Nepal experienced the formal beginning of aviation in 1949 when a lone, 4-seater Indian Beechcraft Bonanza aircraft arrived in Kathmandu. And after a decade, Himalayan Aviation Dakota had the first charter flight between Calcutta (now Kolkata) and Kathmandu. Airlines from India came into business operation from 1953. More than half-a-century of existence in the Nepali sky, Indian airliners still prove to be among the leading carriers that bring substantial number of passengers to Nepal. Ranjan Pokhrel, Head of the International Relations Department at CAAN, says, “If we look into the history of Nepali aviation, we find that the Indian airliners have made a significant contribution to Nepal’s aviation development.” He adds, “Indian airliners are important not only for the aviation sector but also to the economic, social and cultural aspects of Nepal. They are contributing towards providing transport facilities, bringing Indian tourists and strengthening the high level political relationship between Nepal and India from the beginning.” Currently, there are five Indian carriers - Air India, Jet Airways, Jet Lite, Indigo Airlines and Spice Jet - operating between Nepal and India. Kingfisher Airlines, once a major operator on the Kathmandu-Delhi route, has postponed its many international flights including the Kathmandu sector. Air India now operates 32 flights in a week which includes a daily flight between Kathmandu and Delhi and 4 flights a week on the Kathmandu-Kolkata and Kathmandu-Banaras routes. Similar is the story of another Indian carrier Jet Airways which operates a daily flight each on the Delhi-Kathmandu and Mumbai-Kathmandu sectors. Jet Lite, Spice Jet and Indigo have one flight each on the Delhi-Kathmandu route on a daily basis. <br />
	<br />
	<br />
	Nepal Airlines Corporation (NAC), the only Nepali airlines which pioneered flights to Indian cities has now postponed its flights since November 2011. It used to fly to Patna, Calcutta, Mumbai and Bangalore earlier. In the last two decades, NAC has not added any new aircraft. Pradip Karki, Director of Traffic Management at NAC, however, assures that flights to Indian destinations will resume soon. He says NAC must resume flights to India with a new fleet and the government should support the idea. He adds, “We have discussed and signed an MoU with the aircraft manufacturing company to either buy or lease aircraft. There may be Airbus A320 - a 150 seater or A330 - a 250 seater that will operate flights to India in the future.” Most Indian carriers are said to be low cost carriers (LCCs) when compared to other airlines. The fare for the economic class seats starts at Rs 6,300 while business class seats cost a maximum of Rs 34,000 on the Kathmandu-Delhi route. Many other international airlines have started to fly in the same route and the competition has grown stronger. TK Saha, the Country Manager at Air India says that his team is happy with the sector. “In spite of severe competition by other international airlines as well as Indian competitors, we are maintaining and operating our flights with an average of 74 per cent occupancy,” he adds. <br />
	<br />
	<br />
	Nepali and Indian aviation authorities reviewed the Air Service Agreement (ASA) in 2009 to permit Nepali airline companies to fly 24 destinations in India. As per the reviewed ASA, airlines from Nepal can incre',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-08-22',
			'keywords' => '',
			'description' => 'The flow of international passengers in the first quarter of 2012 has been impressive enough to raise optimism among the concerned stakeholders. The statistics between January and March 2012 is an indication that international air service and passenger movement to and from Nepal is set to register a significant increase this year compared to 2011.',
			'sortorder' => '550',
			'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) 13 => array(
		'Article' => array(
			'id' => '649',
			'article_category_id' => '46',
			'title' => 'Salman Lafit Rawn',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size: 14px;"><strong><br />
	</strong></span></p>
<p>
	<span style="font-size:14px;"><strong>We Have To Work According To Consumer Psychology’</strong></span></p>
<p>
	<span style="font-size:14px;"><strong><br />
	<br />
	<br />
	</strong></span></p>
<p>
	<img alt="rawn" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/rawn-interview(1).jpg" style="width: 230px; height: 350px;" vspace="5" /><br />
	<br />
	<strong>Salman Latif Rawn <br />
	Country Manager, Nepal <br />
	Coca-Cola Sabco <br />
	</strong><br />
	<br />
	<br />
	Salman Lafit Rawn is the country manager of Coca-Cola franchise in Nepal since January 2012. Prior to joining Coca - Cola, he had worked in the capacity of the General Manager at Pepsi Cola franchise Iran. He has also worked as the Country Manager at Alokozay Group of Companies in Dubai – UAE . From 2005 to 2007 he was with coca-cola company managing its franchise in Afganistan in the capacity of Country General Manager. An MBA Graduate from the institute of Business Administration in Lahore, Rawn has more than 25 years of extensive and successful experience in the Fast Moving Consumer Goods (FMCG) industry. In an Interview with New Business Age Rawn shared the expansion and investment plans of his company for Nepal and also shed light on the existing challenges. Excerpts: <br />
	<br />
	<strong><br />
	We have heard about the massive expansion plan of Coca-Cola in Nepal. Would you like to shed light on it? <br />
	<br />
	</strong><br />
	The Coca-Cola Group has been working on the expansion of the available categories of its beverage. Right now, we are only doing the Returnable Glass (RGB) and PET business categories. We are investing 23 million USD in a new plant in Terai this year which will be the group’s largest single-time investment in Nepal so far. Internationally, we have many areas where we work in, for example, juice, water and energy drinks. Taking into account the uniqueness and demand of this market, we are planning to introduce some of those products here in the coming years. <br />
	<br />
	<br />
	It’s tough bringing investment in Nepal or convincing people for funding, especially when the political and business environment is not very constructive. However, we have managed to bring investment this time and we are hopeful that if we could use it well, we could bring in more money for this country. <br />
	<br />
	<strong><br />
	What can be the positive outlook for this investment? <br />
	</strong><br />
	<br />
	If we are making profit from this country, we also have to return something to it. There will be new expansions in terms of investing in the plant and machines and it will create new employment opportunities for people. Besides, we will be contributing more to the government exchequer. Nepal is a landlocked country where we need to import most of the raw materials which means that more money will go to the government coffer in the form of Customs Duty or Value Added Tax (VAT) <br />
	<br />
	<strong><br />
	I believe that Coca-Cola has not introduced a wide range of products that are available in many other countries. What are you doing in this regard? <br />
	</strong><br />
	<br />
	Coca-Cola has a wide range of products. Unfortunately, the size of the market is too small to produce all of those products in Nepal. Putting up a manufacturing facility for everything produced by the group will be highly capital intensive. However, we are trying to bring machines which can produce multiple products. Another constraint for this is the per capita income of the Nepali people which is very low. An ordinary Nepali citizen would not spend much on beverages. We are more dependent on tourists and their consumption trend. But this does not mean that we will not introduce any new products in Nepal; we will first import a new product range in Nepal from our plants in the neighbouring country. If we see demand for those products in the market, we will then accordingly set up the manufacturing plant here. We can introduce juice, water and energy drinks and add more flavours to the existing products in the future. <br />
	<br />
	<br />
	<strong>Though the per capita income of the Nepalis is still low, the distribution system for products like beverages has expanded in Nepal in recent years due massive expansion in road network. Has not this development in infrastructure helped in increasing the business prospects? <br />
	</strong><br />
	<br />
	These aspects are not enough because we have to work according to consumer psychology. It has been discovered through our consumer researches and direct discussion with the consumers that people living in European countries and Western territories don’t limit their beverage consumption only to events or family gatherings. It is part of their regular life as well whereas in Nepal, there is still a trend to consume beverage during particular events and festivals or in the presence of guests. The per capita soft drink consumption of the Nepalis is less than eight bottles a year in comparison to other South Asian countries where it is anywhere from 24 to 48 bottles a year. It will certainly be safe for us to introduce new range of products as and when Coca-Cola becomes a part of the Nepali people’s everyday lives. <br />
	<br />
	<br />
	<strong>Coca Cola enjoyed 70-80 percent of market share in Nepal till a few years ago. That figure is now reduced to 66 per cent due to aggressive marketing from the competitor. What are you doing to regain the lost market share? <br />
	</strong><br />
	<br />
	I have worked in markets where we had as much as 92 per cent market share. But these percentages are not attainable when there are two competitive companies operating in the same market. The reality is that when two companies are working competitively, market shares settle down somewhere between 60 and 40. I have worked both with Pepsi and Coke and I know where the market share of Coke is higher than Pepsi or vice-versa and what are the reasons behind it. Our objective behind expansion and investment is to have greater market share and product availability during the peak season. If my production capacity does not allow me to reach everyone during the peak season when they want to consume my product, people will not consume my products in the future. It’s because that opportunity will be grabbed by someone else. So we are trying to regain that lost opportunity which someone else has grabbed. And the moment we have that, the lost market share will automatically come back to us. <br />
	<br />
	<br />
	<strong>What are Coca-Cola’s marketing strategies in Nepal that has helped the brand to maintain its market leader position? <br />
	<br />
	</strong><br />
	Multinational companies implement different marketing strategies at different locations. Despite having a vast range of products in their portfolio, they do consider various aspects for example, which market to go, when to go, what amount of market maturity to seek etc before launching their products. You might find some products in Nepal that are imported in the quantity of thousands or hundreds. However, when it comes to manufacture those products here, it is imperative to justify the required investment. It is the same with us so we are waiting for the right time to introduce additional products. <br />
	<br />
	<br />
	<strong>Bottlers Nepal – the Nepali bottler of Coke – had won the Country of the Year Award in 2010. When next can we expect a similar feat from Coca- Cola’s Nepal operation? <br />
	</strong><br />
	<br />
	We bagged the ‘Country of the Year Award’ continuously for two years in 2009 and 2010. There are nine countries in the group now and all of them compete for this award. Surely, there are countries that have advanced technologies such as South Africa. There is Sri Lanka, Uganda, Ethiopia and we are competing with all of them. But even this year, we won two awards— Employee Engagement Award and Best Water Usage Award. We are competing again and hope to get the Country of the Year Award in the coming years. <br />
	<br />
	<br />
	<strong>How has the ongoing financial crisis affected the soft drinks market in Nepal? <br />
	<br />
	</strong><br />
	We, or for that matter, any other FMCG companies have been seriously affected on two counts. First, with all those days of closures, the production has been disturbed. Second, the distribution of the product has become very difficult. Continuous bandhs have affected our transportation system adversely and a weak transportation mechanism impacts our production system as well. We produce less when there isn’t enough transportation facility available. When we produce less, the cost per case goes high and it affects us as producers as well as the consumers. <br />
	<br />
	<br />
	<strong>What kind of challenges do you see in your job in the Nepali market? <br />
	<br />
	</strong><br />
	Electricity is a very big challenge because we are in a business where products are best served when they are chilled. We have distributed refrigerators to the outlets in the market but they cannot sell chilled drinks due to power outage. Another challenge is gasoline or diesel prices which increase every couple of months or so. At the same time, we can’t increase the price of our products to adjust accordingly. The frequent hike in petroleum prices also makes it difficult for us to decide on our annual budget. The third biggest challenge is the dollar rate fluctuation which has been impacting us heavily as we have to import 90 per cent of the raw material that we use. <br />
	<br />
	<br />
	<strong>Is that the reason for you to reduce your advertising budget? <br />
	<br />
	</strong><br />
	We have not reduced our advertising budget as such. We have rather changed the focus of our advertising campaigns. For example, if there is lesser electricity, the people will be watching television for a lesser duration of time. So we thought of diverting our investment from electronic mediums to advertising through hoarding boards that are more visible and do not get impacted by power outage. You can see increased number of such hoarding boards in the Kathmandu Valley when you move around. There is hardly any main road where Coca-Cola is not present so it’s just a shift of focus. <br />
	<br />
	<br />
	<strong>How do you view the present competition in Nepal’s soft drink market? <br />
	</strong><br />
	<br />
	There are two major categories in the Carbonated Soft Drink (CSD) industry —water and flavoured drinks. There is no ‘A’ Class player in water so far in Nepal which is dominated by a few local brands available in the market. However, there is a competition between two players in the flavoured drinks category. Our competitor is trying to build a market for itself and so are we. But the good thing is that our share of the market pie becomes bigger with the growth in the market size. I could see that as an industry, we are less dependent on trying to eat each other’s pie. Instead, we are trying to increase the total size of the market. The fight between the two companies was stringent in the past but it is not the same anymore because a person working for Coca-Cola today can work for Pepsi tomorrow and vice-versa. At present, the fight is more indirect for example; it is for the space in the outlets. The general size of our grocery shops is small so it’s not just the soft drinks producers but the entire FMCG industry that is jostling for space in the outlets. <br />
	<br />
	<br />
	<strong>It is said that one of the major problems in the Nepali market is that of arrears in collection of dues from the distributors. How is your experience? <br />
	<br />
	</strong><br />
	We don’t have such issues. I have also talked with other FMCG companies and even they are not operating on credits. However, I don’t say that we don’t have any arrears at all. There are credits in the market but these are secure credits. Our distributors are working with us for a reasonable period of time so there is a certain level of credibility in our relations. If we realise that a distributor or distributing channel might land us in troubled waters, we prefer not to extend any unsecured business with them. <br />
	<br />
	<br />
	<strong>Bottlers Nepal has increased its spending on CSR activities in recent years. Can you tell us about the new CSR activities that are being planned? <br />
	<br />
	</strong><br />
	I could see a huge chunk of activities this year coming under our CSR initiatives apart from our regular activities. We have been working on water utilisation, plantation and education and we have also been sponsoring certain orphanages. Our new project is to extend support to women entrepreneurs so we have adopted a vision “5 BY 20” which is a commitment to empower 5 million women to turn successful entrepreneurs by the 2020. Nepal has also been selected for the project from the South-West Asia Region. A senior person representing the Director level of the India Division of the Coca- Cola Company will be visiting Nepal next week to explore the details of the campaign. The Senior Vice President of the division will accompany him and together they will be setting different criteria. The criteria will entail aspects like who can qualify, what can be the measures to qualify and what will be an appropriate form of support for women entrepreneurs etc. Another project which we are going to introduce is ‘Support My School’. It is about kids who run away from schools, are not interested in study and do not have access to studies. This big campaign will be looking at ways to help them through uniforms, books, building libraries and classrooms etc. <br />
	<br />
	<br />
	<strong>As a global operator, what are the challenges you face in a country like Nepal? <br />
	<br />
	</strong><br />
	Nepal is among the very few countries in the world which are landlocked. It does not have much of its own revenue generation. To analyse how much people can buy from us and what things they will be interested in, we will have to watch their source of revenue. Like I said earlier, the smaller base of the country, lack of electricity and diesel, and dollar rate fluctuation are the major challenges in bringing big investment to this country. Another problem is that of finding the right people to work because the Nepali industry is small. Had there been multiple industries, there would have been a bigger pool of human resource to choose from. <br />
	<br />
	<br />
	<strong>What kind of government support are you looking for? <br />
	</strong><br />
	<br />
	The government should see the quantum of direct or indirect taxes and exchequers that we are paying. If it increases the excise duty or other duties at a very abnormal rate to industries like us, bringing investment to this country and creating opportunities for employment will be difficult. We are trying to expand our business so we need facilitation in technology and computerisation from the government. We will not be able to bring investment to this country if we have to wait years-on-end for approval on bringing software and technology. At present, we are trying to bring in a software called SAP and it’s already been a year since we applied to the Inland Revenue Department for the approval. Our application is simply gathering dust there. SAP will enable our headquarters to evaluate our work and access our records through our central server. It is easier to operate when this system is installed and therefore, we have been requesting the government to approve our application. We are not the first company in Nepal to use this software as there are some other companies that are already using the same technology. We have explained this to the government authorities but they told us to wait for the permission. We have met the concerned officials and satisfied all their queries but there is no progress so far. How can we bring more technology and investment in this country if the government does not facilitate manufacturing industry with the required technologies? It is our sincere request to the government to do the needful and approve our application on the SAP software. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'Salman Lafit Rawn is the country manager of Coca-Cola franchise in Nepal since January 2012. Prior to joining Coca - Cola, he had worked in the capacity of the General Manager at Pepsi Cola franchise Iran. He has also worked as the Country Manager at Alokozay Group of Companies in Dubai – UAE',
			'sortorder' => '549',
			'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) 14 => array(
		'Article' => array(
			'id' => '648',
			'article_category_id' => '47',
			'title' => 'Beauty Queen Turned Businessperson',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Gaurav Aryal <br />
	<br />
	</strong><br />
	Ritu Singh Vaidya, Managing Director at United Traders Syndicate Pvt Ltd (UTS), has enjoyed every role she has stepped into. When she walked on the ramp, she mastered it with her style. When she was on the stage, she cherished the music and touched the listeners’ heart. Now, she is handling the position of a leading business person very well. Model, former Miss India, singer and now a businessperson; Vaidya has perfected the responsibilities she thinks are brought to her by destiny and her dedication in the pursuit of dreams. <br />
	<br />
	<img alt="Ritu Singh Vaidya" border="1" height="362" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/personality(3).jpg" vspace="5" width="300" /><br />
	<br />
	<br />
	Ritu Singh Vaidya always dreamed to set up her own business although she was at the pinnacle of her modelling career. With twists and turns of her career that were never disappointing for her, she has now climbed up the ladder towards a leading position in one of the leading business houses of Nepal, Vaidya’s Organisation of Industries and Trading House (VOITH). Her working style is ruled by discipline as she was raised in a family with partly business and partly army background. <br />
	<br />
	Vaidya recalls her childhood in Delhi as “nice, pleasant and loving”. She feels fortunate about having pleasurable childhood days. Her grandfathers were in the business sector and were running their family business in present day Pakistan. She says her grandfathers moved to Delhi when she was an eighth grader. She was educated in Delhi and after completing school, Vaidya pursued fashion designing for her higher studies. She is also a BA in Economics and Political Science from Delhi University. <br />
	<br />
	It was obvious for the beautiful and charming Vaidya to be offered a career in glamour and modelling industry. She believes destiny took her into the world of modelling. “I was in class XII when my friends and I participated in the May Queen contest. So, that was the beginning of it.” She was crowned the May Queen title. She actively began modelling after many offers started coming her way. Her journey on the ramp did not stop immediately though. She went to the Miss India contest and grabbed the title that many Indian women dream to achieve – Miss India – in 1991. After winning the title at home, her next target was to win international titles. Vaidya became the fifth runner up in Miss World, second runner up in Miss Asia World and first runner up in Miss India Universe. <br />
	<br />
	“I took it (modelling) on because it just came to me. It happens that things suddenly start working for you and I think they are the natural things to happen because they just come your way,” she says, “But I always had an entrepreneurial spirit in me. I always wanted to establish myself in some kind of business where I felt challenged. I am someone, who likes a routine, discipline and innovativeness.” Vaidya believes she was always inclined towards business. Even during her modelling days, she would dream of getting into some sort of business in the future. “I wasn’t somebody who was going into Bollywood” she says. <br />
	<br />
	Vaidya says she has never been a person who is devoted to only one thing. “When I got into the glamour world, I was also very focused on my studies and about what I was going to do next. Though I was very much enjoying it, I couldn’t see myself turning forty on the ramp,” she explains. <br />
	<br />
	Everything was organised and settled for young Vaidya even at the age of 20. She says she was almost leading a life what people start mostly at their middle ages. She was just 20 when she met businessman Suraj Vaidya in Kathmandu at a charity fashion show organised by him for Bal Mandir. The professional acquaintance grew into love and later to marriage within a matter of years. Vaidya recalls that the initial days of living in Nepal after her marriage was completely different from her earlier days. She says it was a total change in her life, family, career and friends. “The first year of marriage was difficult because I was not used to a lot of things. But my husband made it very easy for me as he was very easy and patient about me even when I went back to Delhi 15 times in 12 months,” she shares. <br />
	<br />
	Vaidya ventured into fashion designing in her initial days in Nepal and worked as a fashion designer for seven years. That was the time when she was also rearing her child. Vaidya stopped designing clothes and dived into her new found passion – singing. She released an album, ‘Sun Zara’ and appeared in her album’s music videos as well. However, she has abandoned her role as a singer as she thinks it consumes a lot of her time and takes her away from her family. “When I released my first album, I really thought I can manage singing simultaneously with my business commitments but later I realised it is not so. For Hindi singing you have to be in Mumbai and be accessible whenever somebody calls you. That was not something I was looking for and desired in my life. Singing for films and doing stage shows is not my cup of tea.” She started taking responsibilities in VOITH when Suraj Vaidya was busy travelling and spending time for larger business responsibilities. <br />
	<br />
	“He had a great ideology on which everybody was moving and that was a great success too. Once he was unwell and had to take rest for treatment. That was when I took up the work,” she says. At present, she is completely looking after UTS and its divisions that deal in Toyota and heavy equipments. Along with it, she occasionally looks after the spa she has set up a few years back. When it comes to working approach, she says, “My approach is very simple. I try to simplify things and believe in a totally centralised command. But jobs are designated to different people and they have a total free hand in what they do. But yes, it has to be totally accountable.” She encourages flow of new ideas from her employees but feels that the final central command has to be strong enough to prevent things going haywire. Vaidya thinks employees are most happy when you let them do the work, give them a good working environment, be ready to listen to their suggestions and at the same time reward them for what they do. Vaidya has a disciplined working style. “Because I am disciplined, a lot of my staff has to be disciplined. They can’t take anything lightly because they know when I say something that needs to be done. I am very focused on making sure that whatever needs to be done, should be done in the given frame of time,” she emphasises. <br />
	<br />
	<img alt="Ritu Singh Vaidya" border="1" height="460" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/personality1(1).jpg" vspace="5" width="300" /><br />
	<br />
	Vaidya reveals that her organisation is planning to expand into newer sectors like hydropower, hospitality and education. She is trying to consolidate what is already with the organisation along with planning of new ventures. She says, “Hydropower should be there soon as it is already in the pipeline and we are seriously looking into hospitality. Hopefully, we will be coming with new ventures in the next two years if we don’t have external disturbing factors like endless bandhs and political crisis.” Vaidya believes that she has not earned enough money to spend on charities and philanthropic activities. “I believe in doing philanthropy with my own money. I won’t be convinced about it if I am going to throw somebody else’s money and call it a charity. If I can do well and manage to spare money from my earnings; that is the right kind of charity that I would want to do.” <br />
	<br />
	She thinks she is very compartmental and does not like to mix her personal and professional life together. So, she never takes her office to home. “My time is totally devoted to home when I am home. Similarly, when I am in the office, I give all the time to my office works,” Vaidya reveals. Evenings are for her son and husband while she reserves her morning time usually for exercising. A strong believer in destiny, Vaidya is very satisfied with what life has brought to her. She takes her life as it comes and is ready for wherever it leads to. Optimistic in nature, one shouldn’t be surprised to find her trying new things, ventures and passions in the days to come. Her well wishers shouldn’t be astonished to see her in a completely new avatar not too long in the future. <br />
	<br />
	<br />
	<img alt="Ritu Singh Vaidya" border="1" height="296" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/personality2.jpg" vspace="5" width="300" /><br />
	<br />
	<br />
	<strong>PERSONAL SIDE <br />
	</strong><br />
	<br />
	<strong>Take on success:</strong> I am a very happy content person. Nevertheless, the day I do not want to do anything more, I would think that I am dead. From that point of view, there is a lot more to do. <br />
	<br />
	<br />
	<strong>Planning a holiday:</strong> I like things to be done perfectly and neatly. I make sure I do a lot of research on wherever I am going and know the places so that I won’t miss what I want to see and what we are going to do. I like my travel to be organised right from my ticketing and stay to every itinerary and the places where we are going. <br />
	<br />
	<br />
	<strong>Brand consciousness:</strong> If something is nice it does not need to be branded. I believe in being comfortable and wear what I think looks best on me. <br />
	<br />
	<br />
	<strong>Secret of beauty: </strong>Fitness is something I really believe in. You should be very fit because body is the vehicle that carries you. So you have to take care of it. <br />
	<br />
	<br />
	<strong>Spending leisure time:</strong> Reading and listening to music. I read more of philosophies and autobiographies. I love Indian classical music and mostly listen to Hindi music and instrumental and for English, I like jazz and more soulful songs. <br />
	<br />
	<br />
	<strong>Favourite pastimes: </strong>I love to sing and do gardening and am passionate about my house. Therefore, I love cleaning on my off days. <br />
	<br />
	<br />
	<strong>Better mother or a better boss: </strong>I try to justify every role - a good mother, good wife, good house keeper and a good business person. <br />
	<br />
	<br />
	<strong>Favourite Travel Destination: </strong>Paris among all because it is the most romantic and artistic city and also Venice. Turkey was also a very nice place where we went recently and Russia turned out to be a pleasant surprise. <br />
	<br />
	<br />
	<strong>Sporty indulgence: </strong>I used to be a badminton champion in my school. I adored playing volleyball and basketball but now I am more into gymming. <br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-09-17',
			'keywords' => '',
			'description' => 'Ritu Singh Vaidya, Managing Director at United Traders Syndicate Pvt Ltd (UTS), has enjoyed every role she has stepped into. When she walked on the ramp, she mastered it with her style. When she was on the stage, she cherished the music and touched the listeners’ heart.',
			'sortorder' => '548',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	)
)
$current_user = null
$logged_in = false
include - APP/View/Elements/side_bar.ctp, line 60
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::_renderElement() - CORE/Cake/View/View.php, line 1224
View::element() - CORE/Cake/View/View.php, line 418
include - APP/View/Articles/index.ctp, line 157
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::render() - CORE/Cake/View/View.php, line 473
Controller::render() - CORE/Cake/Controller/Controller.php, line 968
Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200
Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167
[main] - APP/webroot/index.php, line 117

Warning (2): simplexml_load_file() [<a href='http://php.net/function.simplexml-load-file'>function.simplexml-load-file</a>]: I/O warning : failed to load external entity &quot;&quot; [APP/View/Elements/side_bar.ctp, line 60]
Code Context
//    $file = 'http://aabhiyan:QUVLg8Wzs2F7G9N7@nepalstock.com.np/api/indexdata.xml';



    if(!$xml = simplexml_load_file($file)){
$viewFile = '/var/www/html/newbusinessage.com/app/View/Elements/side_bar.ctp'
$dataForView = array(
	'articles' => array(
		(int) 0 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 1 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 2 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 3 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 4 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 5 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 6 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 7 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 8 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 9 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 10 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 11 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 12 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 13 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 14 => array(
			'Article' => array(
				[maximum depth reached]
			)
		)
	),
	'current_user' => null,
	'logged_in' => false
)
$articles = array(
	(int) 0 => array(
		'Article' => array(
			'id' => '664',
			'article_category_id' => '60',
			'title' => 'Cathay Pacific Airways Wins “World’s Best Business Class”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="" border="1" height="214" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/cathay(1).jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	Cathay Pacific Airways has been awarded with “World’s Best Business Class” award at Skytrax World Airline Awards ceremony held on July 12. The Skytrax awards, conducted by the global aviation research organisation, polled over 18 million business and leisure air travelers from more than 100 countries. <br />
	<br />
	<br />
	“The result is the global benchmark of airline excellence, in which more than 18 million airline passengers from across the world picked their choices. We couldn’t have delivered the industry-beating products and services without our customers. I would also like to thank all for their genuine collaboration in the design process,” said John Slosar, Chief Executive of Cathay Pacific. <br />
	<br />
	<br />
	As passengers enter the cabin, they immediately appreciate the sense of space and openness. It has clean, sculpted lines define private seats with direct aisle access. Abstract patterns, richly woven fabrics, fresh-cut orchids and original artwork harmonise to create a warm, premium residential feel. The new Business Class features natural leather, brushed steel and richly woven fabrics that blend soothing green, brown and champagne tones. Abstract patterns on table tops, fresh-cut flowers and splashes of colour in storage areas provide elements of warmth. <br />
	<br />
	<br />
	Each seat is equipped with a universal Power Supply outlet to keep electronic devices fully charged. A Multi-port Connector includes an RCA port, an iPhone/iPod connector and a USB port. The RCA and the iPhone/iPod connector allow passengers to connect their own devices and watch video through the Personal TV. Cathay Pacific is also introducing a new line of Business Class service-ware featuring simple, elegantly designed white porcelain by Narumi of Japan. The appetiser plate features an abstract bamboo pattern also found on the signature plate introduced in The Deli of The Cabin. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Cathay Pacific Airways has been awarded with “World’s Best Business Class” award at Skytrax World Airline Awards ceremony held on July 12. The Skytrax awards, conducted by the global aviation research organisation, polled over 18 million business and leisure air travelers from more than 100 countries.',
			'sortorder' => '562',
			'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) 1 => array(
		'Article' => array(
			'id' => '663',
			'article_category_id' => '60',
			'title' => 'Air Arabia Named World’s Second Best Performing Airline',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="" border="1" height="221" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/airarabia.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	Air Arabia, demonstrated sustained profitability and solid growth margins in 2011, placing it at number two among all airlines worldwide. In each of the past years, the airline has advanced its ranking in the TPA rankings. <br />
	<br />
	<br />
	Air Arabia, the Middle East and North Africa’s first and largest low-cost carrier, has been ranked as the world’s second best performing airline in a study by Aviation Week, the leading global aviation magazine. The Top-Performing Airlines (TPA) Study ranks the top 10 performing airlines worldwide, based on five different performance categories, including financial and operational performance. <br />
	<br />
	<br />
	Air Arabia, demonstrated sustained profitability and solid growth margins in 2011, placing it at number two among all airlines worldwide. In each of the past years, the airline has advanced its ranking in the TPA rankings. <br />
	<br />
	<br />
	“To be ranked second among all airlines worldwide for the level of our performance, it’s a remarkable achievement and a source of great pride for everyone at Air Arabia,” said, Adel Ali, Group Chief Executive Officer of Air Arabia. “As we continue to expand into new geographies and consolidate our leadership position in existing markets, Air Arabia is uniquely positioned to capitalise on the many exciting opportunities present in the aviation sector today.” <br />
	<br />
	<br />
	Air Arabia, which operates flights to 75 destinations from three regional hubs, delivered strong financial and operational performance in 2011. The low-cost pioneer launched six new destinations and took delivery of six new aircraft in 2011, while carrying a total of 4.7 million passengers, an increase of six per cent compared to the previous year. <br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Air Arabia, demonstrated sustained profitability and solid growth margins in 2011, placing it at number two among all airlines worldwide. In each of the past years, the airline has advanced its ranking in the TPA rankings.',
			'sortorder' => '561',
			'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) 2 => array(
		'Article' => array(
			'id' => '662',
			'article_category_id' => '60',
			'title' => 'Qatar Airways Named Best Airlines',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong><img alt="" border="1" height="158" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/qatar(4).jpg" vspace="5" width="400" /><br />
	<br />
	Qatar Airways has seen rapid growth in just 15 years of operation, currently operating a modern fleet of 109 aircraft to 117 key business and leisure destinations. <br />
	</strong><br />
	<br />
	Qatar Airways has been named Airline of the Year 2012 for the second year running at the prestigious annual Skytrax World Airline Awards held at the Farnborough Air Show. The Airways retained the coveted title of Airline of the Year 2012 and notched up two further awards – Best Airline in the Middle East for the seventh consecutive year and the Best Airline Staff Service award in the Middle East. The winners were announced at an award ceremony attended by leading figures from the global aviation industry at the Farnborough Air Show held on June 12. The Skytrax awards, conducted by the global aviation research organisation, polled over 18 million business and leisure air travellers from more than 100 countries. <br />
	<br />
	<img alt="" border="1" height="401" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/bestqatarairways.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	Akbar Al Baker, CEO of Qatar Airways hailed the achievements as “fantastic recognition” of all employees at Qatar Airways for the dedication and commitment to their job. “I am extremely proud of the adulation given once again by the very people who fly - the travelling public, for their support and faith in Qatar Airways,” he said at the ceremony. Retaining awards is always difficult, but we have managed to do so amid the tough competition which only shows we remain focused in our day to day job of offering passengers what they fully deserve; the highest standards of service both in the air and on the ground, he added. <br />
	<br />
	<br />
	Edward Plaisted, CEO of Skytrax said, “To win the ‘Airline of the Year’ award for a second successive year is a remarkable achievement for Qatar Airways, and a clear recognition of the continued efforts by its management and staff to be the world’s best airline.” Qatar Airways has seen rapid growth in just 15 years of operation, currently operating a modern fleet of 109 aircraft to 117 key business and leisure destinations across Europe, Middle East, Africa, Asia Pacific, North America and South America. Since the beginning of the year, it has launched flights to Baku (Azerbaijan), Tbilisi (Georgia), Kigali (Rwanda), Zagreb (Croatia), Erbil (Iraq), Baghdad, and Perth (Australia). The Airways has planned to launch its services to new destinations, including Kilimanjaro (Tanzania), Mombasa (Kenya), Yangon (Myanmar), Maputo (Mozambique) and Belgrade (Serbia) within a couple of months. <br />
	<br />
	<br />
	The subsidiary of Qatar Airways, Qatar Duty Free, has announced an exciting Summer Surprises Promotion for passengers departing from, or transiting through, Doha International Airport (DIA). The promotion that runs until August 31 allows customers who spend $136 or more on duty free purchases to automatically be eligible for a raffle draw to win shopping vouchers worth US $10,000, $5,000 and $1,000 and discount coupons. <br />
	<br />
	<br />
	Similarly, Qatar Airways has launched a Twitter-powered global social media campaign designed to connect people from around the world. The airline has also announced a Twitter-only competition called Tweet-a-Meet through which participants can win business class trip to their favourite destination. <br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Qatar Airways has been named Airline of the Year 2012 for the second year running at the prestigious annual Skytrax World Airline Awards held at the Farnborough Air Show. The Airways retained the coveted title of Airline of the Year 2012 and notched up two further awards – Best Airline in the Middle East for the seventh consecutive year and the Best Airline Staff Service award in the Middle East. The winners were announced at an award ceremony attended by leading figures from the global aviation industry at the Farnborough Air Show held on June 12. The Skytrax awards, conducted by the global aviation research organisation, polled over 18 million business and leisure air travellers from more than 100 countries.',
			'sortorder' => '560',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 3 => array(
		'Article' => array(
			'id' => '661',
			'article_category_id' => '60',
			'title' => 'Etihad Airways Q2 Revenue US$ 1.25 Billion',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="etihadairways" border="1" height="178" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/etihad(1).jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	Etihad Airways’ ASKs rose by 25 per cent to 15.2 billion in the second quarter, as the fleet grew to 67 aircraft from its earlier 61. The revenue of Etihad Airways in six months this year has increased by 31 per cent to US$ 1.25 billion from US$ 957 million as compared to last year. The number of passengers has leapt up by 34 per cent to 4.89 million during the six months from 2.55 million in 2011. The increase in overall capacity and improved seat factors has contributed to the increment in the revenue, says the company. <br />
	<br />
	<br />
	The record results were boosted by the airline’s growing network of code-shares and strategic partnerships which together fed 800,000 passengers into Etihad Airways’ network in the last six months, contributing US$ 281 million. James Hogan, President and Chief Executive Officer of Etihad Airways said, “These results are an endorsement of our strategy, which has seen us widen and deepen our partnerships in addition to continued focus on our organic growth plan.” <br />
	<br />
	<br />
	Etihad Airways’ available seat kilometres (ASKs) rose by 25 per cent to 15.2 billion in the second quarter, as the fleet grew to 67 aircraft from its earlier 61. Likewise, revenue passenger kilometres (RPKs) rose 33 per cent to 11.8 billion from 8.9 billion. During the period, the Airways took minority equity stakes in Aer Lingus and Virgin Australia, adding to its minority shareholdings in Air Berlin and Air Seychelles. These five airlines together carried 72 million passengers on 376 aircraft in 2011, generating combined revenues of more than US$ 14 billion. <br />
	<br />
	<br />
	Recently, the Airways unveiled plans to launch daily flights to Sao Paolo in Brazil, its first South American destination, which will start from June 2013. “We are very pleased to see the projected revenue benefits and cost synergies for both Etihad Airways and our partners tracking in line with, or even above, plan which shows once more that our partnership strategy delivers value to all parties’ shareholders,” said Hogan. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Etihad Airways’ ASKs rose by 25 per cent to 15.2 billion in the second quarter, as the fleet grew to 67 aircraft from its earlier 61. The revenue of Etihad Airways in six months this year has increased by 31 per cent to US$ 1.25 billion from US$ 957 million as compared to last year. The number of passengers has leapt up by 34 per cent to 4.89 million during the six months from 2.55 million in 2011. The increase in overall capacity and improved seat factors has contributed to the increment in the revenue, says the company.',
			'sortorder' => '559',
			'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' => '660',
			'article_category_id' => '40',
			'title' => 'Drug Drive : The Rising Business Pharmaceutical Companies In Nepal',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Sushila Budhathoki <br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<br />
	<span style="font-size:14px;"><strong>Drug Drive : The Rising Business Of Pharmaceutical Companies In Nepal</strong></span></p>
<p>
	 </p>
<p>
	<br />
	<br />
	<img alt="coverstory July 2012" border="1" height="226" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs.jpg" vspace="5" width="400" /><br />
	<br />
	Nepal’s pharmaceutical expense is at par with other South Asian countries, thanks to the increase in the number of pharmaceutical companies and their production. In 2008, the total per capita pharmaceutical expenses was US$ 6.96 while the total amount of pharmaceutical expenses stood at Rs 13.09 billion in Nepal. Mahesh Gorkhali, President of Association of Pharmaceutical Producers Nepal (APPON) says Nepali companies are growing at around 15-20 percent annually. The growth has resulted in around 42 per cent command of the market by Nepali products with strong presence and distribution network of marketers in the rural and remote areas. <br />
	<br />
	<br />
	A ‘Market Study Report on Pharmaceutical Products in Nepal’ conducted in 2011’ depicts the shining business of Nepali pharmaceutical industries. According to the report, Nepal experienced significant growth in medicine production in Asia when the growth rate was 11 per cent globally in the year 2009. Nepal obtained annual growth rate of pharmaceutical products at 19.52 per cent even ahead of India who saw 13 percent growth during the same period. According to the report, the total turnover of Nepali companies was approximately Rs 6.8 billion where the company registering lowest sales turnover was Rs 20 million and the highest at about Rs 600 million. The World Health Organization’s report ‘The World Medicines Situations 2004’ listed Nepal among 84 countries that produced pharmaceutical finished products from imported ingredients whereas India was categorized among 17 countries that had innovative capacity. <br />
	<br />
	<br />
	Pradeep Jung Pandey, President of Lomus Pharmaceutical Pvt Ltd says that Nepali companies are capable of producing some of the segments out of big variants of medicinal products. He adds, “We have the potential of increasing the market share at a fast pace.” Most of the Nepali allopathic medicines are of oral dosage forms of tablets, capsules, liquid, syrup, powder for oral suspension while topical preparation like cream, ointment and lotion are also produced. If vaccines, contraceptives, ARV (Anti Retroviral), large volume drugs and few others are excluded, Nepali companies tend to acquire big market share, say experts. Radha Raman Prasad, Director General and Chief Drug Administrator at Department of Drug Administration (DDA) states that medicines can be imported like other goods from the global market. “When the market is dictated by the Nepali industries, the foreign companies that cannot compete will automatically exit,” he says. <br />
	<br />
	<strong><br />
	Demand, Supply and Investment <br />
	</strong><br />
	<br />
	<img alt="" border="1" height="228" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs1.jpg" vspace="5" width="300" /><br />
	<br />
	Demand of Allopathic medicines is high in Nepal. There are altogether 45 Nepali companies operating in the market with 4,677 brands and thousands of products. According to the market study 2011, public expense on pharmaceuticals was Rs 2.96 billion in the year 2008. Similarly, total private expense on pharmaceutical products was Rs 10.06 billion. <br />
	<br />
	<br />
	The size of Nepali medicine market is estimated at Rs 18 billion and the Nepali companies command 42 per cent market share. Manufacturing of oral antimicrobials like penicillin, β-lactam, Non penicillin, antifungals, anthelminthic and antiviral (Simplex) is common while some are engaged in producing non-steroid pain killers, nutritional supplements, enzymes, haematinics, oral steroids, cardiovascular (heart and blood pressure), diabetes, psychiatry (mental disorder) etc. <br />
	<br />
	<br />
	Many Nepali and foreign companies are importing and supplying pharmaceutical products. Their role is significant for fulfilling the demand of various kinds of medicines in Nepal. According to DDA, 257 foreign pharmaceutical companies acquired licenses to sell their allopathic medicines in the year 2067/68. Similarly, 11,769 medicines are registered with DDA including 7,092 foreign and 4,677 Nepali products. There are altogether 1,544 wholesalers and 8,110 retailers throughout the country. <br />
	<br />
	<br />
	The estimated investment in the pharmaceutical industry of Nepal is around Rs 735 million to Rs 1.47 billion. Mahesh Gorkhali, President of Association of Pharmaceutical Producers Nepal (APPON), explores the need of high investment for the establishment of a pharmaceutical Company. He says, “For a good company mainly producing tablets, capsules and liquids, around Rs 25-30 million is required as an investment depending upon the choice of machinery equipments, building, location etc. Establishing an industry in city areas is usually costlier than in the terai or hilly regions.” Nepali industries are not API (Actual Pharmaceutical Ingredients) manufacturers; they import raw materials from other countries. The cost of the raw materials is also increasing investment in the pharmaceutical industries. <br />
	<br />
	<br />
	<strong>Emerging Pharmaceuticals <br />
	</strong><br />
	The number of Nepali allopathic companies has reached 58, according to the DDA. Altogether, 11 new allopathic companies have been registered in the FY 2068/69 whereas only two allopathic companies were registered in the previous year. A number of pharmaceutical companies have been established in different districts like Dang, Bharatpur, Sunsari, Jhapa, Bhaktapur, Kathmandu, Nawalparasi, Birgunj, Lalitpur, Bara and Parsa with investment of billions of rupees (see table). According to the DDA, pharmaceutical companies registered in the FY 2068/69 have proposed a total investment of 1.83 billion Rupees including investment from both herbal and allopathic companies. <br />
	<br />
	<br />
	<strong>Job Destination <br />
	</strong><br />
	<img alt="" border="1" height="220" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs3.jpg" vspace="5" width="300" /><br />
	<br />
	<br />
	Pharmaceutical business has employed thousands of people in pharmaceutical production, distribution and marketing. There are 4,200 medical representatives, 2,474 pharmacists and more than 13,000 professionals employed with various pharmaceutical companies. Regular human resource like managers, accountants, computer operators, receptionist, cleaners, drivers, kitchencrew, HR and admin officers also find work with these organisations. Pharmaceutical companies also provide internship to hundreds of students every year who are mostly recruited in the very companies at a later stage. Sanju Acharya, Administrative Assistant at Nepal Pharmacy Council, opines that there is a huge demand of pharmacy graduates in the pharmaceutical sector. Pharmacy professionals are of two categories; those who have graduated in Pharmacy and above up to PhD level and the ones who complete three year Diploma in Pharmacy under the Council for Technical Education and Vocational Training-CTEVT program. Pharmacy students are highly in demand at Pharmacy colleges as teachers and laboratories and hospitals as researchers or lab assistants. By law, a hospital must own a pharmacy operating 24 hours, which also provides opportunity to these students. Graduates from the Institute of Medicine (IOM) and Kathmandu University are mostly found applying for foreign colleges in search of greener pastures. Having seen the better job opportunities, many colleges have started to include pharmacy as a subject in their curriculum. There are around 16 pharmacy colleges affiliated to Tribhuvan University, Pokhara University and Purbanchal University. Together, they produce pharmacy graduates for the industry with an annual intake of around 600- 650 graduates yearly. Kathmandu University runs B Pharm, M Pharm, Pharm D and PhD programs while CTEVT runs three year Diploma in Pharmacy program at 24 different institutions, with an annual intake of 960 persons. The undergraduates are mostly utilized in community pharmacies. <br />
	<br />
	<br />
	<strong>High Competition <br />
	</strong><br />
	<br />
	The market share of Nepali companies in the urban set up is approximately 20 per cent and the rest 80 per cent in the rural markets. The reason behind this is credited to high competition among Nepali pharmaceutical companies and limited customers or prescribers, in spite of progressive marketing and promotion of the medicines. It clearly depicts that if the share of Nepali products increases in the city areas, their total share in the pharmaceutical market will experience a significant growth ultimately. However, new industry registrations too signal to follow the same trend which industrialists fear would lead to further competition. Government authorities state that the import of large volumes of drugs from other countries is due to the scarcity of varieties of medicines in the market. On the other hand, Industrialists accuse the government of importing many similar products from India which they say is also one of the reasons behind severe competition. Most of the medicines are ‘me too’ products which has compelled high competition between Nepali companies as well as the imported ones. Most pharmaceutical products are related to a particular disease or a group of diseases (therapeutic segment), and are not spread in diverse therapeutic segments. Apart from that, products like Albendazole, Amoxicillin, Azithromycin, Ciprofloxacin, Fluconazole, Paracetamol, Ibuprofen, Hyoscine, Metronidazole, Ofloxacin, etc are manufactured by around 20 to 30 companies. Similarly, around a dozen of companies produce the cardiovascular and diabetes medicines. “There should have been competition on varieties and quality of the medicines but some Nepali companies are desperately competing because of the similar products,” says freelance market researcher Rajan Raut. Similar products from foreign countries find their stand in the market even tougher as some of the Nepali products have even substituted imported products. <br />
	<br />
	<br />
	<img alt="coverstory" border="1" height="771" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs12.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	<strong>Monitoring and Inspection <br />
	</strong><br />
	<br />
	The DDA – that has 31 staffs which include 13 drug inspectors of different levels – has been facing a hard time in operating effectively. Such a limited manpower is considered a very low number to maintain the growing number of pharmaceutical industries, wholesalers and retailers. With little human resource to speak of, DDA runs different programs like marketing authorization, inspection, import control, licensing, market control, medicine advertisement and promotion, quality control and clinical trial. Quality inspection of medicines including laboratory reagents, surgical items, bandage, sutures, catheters etc are also some areas the DDA has been found lacking at. National Medicine Laboratory is the only public sector laboratory which monitors quality of the medicines through samples collected by the DDA. However, it doesn’t publicize the results publicly. Lack of good distribution practice and storage practice seems a common problem in many places. This is the reason why consumers often complain about consuming outdated medicines or shortage of essential medicines, blood, oxygen etc. Lack of proper monitoring system of pharmaceutical product is feared to grow ineffectiveness. No medicine company is found reporting its medicinal errors. As per the law, up to Rs 300,000 is to be paid by the manufacturer as compensation if medicine causes harm to the consumer. Baburam Bhattarai, President of Nepal Chemist and Druggist Association urges the need of regulating unregistered medical stores because according to him, they contribute towards creating health hazards. He says, “The government monitoring system has not been so effective. Besides, the current political situation is also fostering such business.” There is no specified division or section in DDA for WHO-GMP inspection either. Although the DDA has insisted that it has not found a single case of counterfeit drug, doctors from different districts bordering India fear its presence in the Nepali market. High prices of medicines have always been a controversial issue. DDA has fixed the actual price for up to 10 medicinal products including saline, painkillers and oral dehydrates. Shyam Adhikari, Drug Inspector at the DDA says they are looking at a mechanism to ascertain the prices of Nepal made medicines as well as the imported ones in the coming days. Recently a ‘Price Monitoring Committee’ has been formed with the participation of members from the DDA, pharmaceutical industry and consumers’ representatives. However, the companies insist that they keep the profit margin scientifically with the approval of the Government of Nepal. Pandey points that the Nepali medicines are priced either at par or a little cheaper than those of their Indian counterparts. Citing the example of a paracitamol tablet, he says, “A single unit of citamol tablet costs Rs 2 in Pakistan and India while it costs only one rupee in Nepal.” Pharmaceutical companies do not produce drugs in a large volume neither do they run with full capacity. Nepali pharmaceutical companies are using 20 to 90 per cent of their respective capacities for production and operate about 8 hours daily which is said to be the major reason behind the high production cost of the medicines. <br />
	<br />
	<br />
	<strong>Investment in Research &amp; Development <br />
	</strong><br />
	<br />
	There are only two or three companies that have been producing biological products. Most of the demand of injectables and biological drugs is fulfilled through imports. Essential medicines which require high technology are donated to Nepal by different international aid agencies from abroad. They also provide vaccines for expanded programs of immunization and medicines for the treatment of tuberculosis, leprosy, HIV/AIDS and sexually transmitted infections (STI), malaria, kala-azar and filariasis etc, for free. Nepali companies are producing around 33 per cent of essential medicines mainly producing therapeutic drugs. Industrialists are apprehensive about invest in research &amp; development (R&amp;D) because of the current political instability and law and order situation, say analysts. Most of the Nepali companies have limitations in terms of technical capability and innovation. On the other hand, foreign companies including multinational ventures have access to latest technologies and are engaged in import of medicines. However, there is no technical collaboration between the multinational ventures and Nepali companies. Industrialists too agree that Nepali pharmaceutical companies should conduct varieties of research and fulfil the demand of high tech medicines in Nepal. They accuse the government for not supporting them adequately as R&amp;D requires high investment, manpower and technology. <br />
	<br />
	<br />
	<strong>The Way Forward <br />
	</strong><br />
	<img alt="" border="1" height="200" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs4.jpg" vspace="5" width="300" /><br />
	<br />
	Many Nepali companies are manufacturing high quality products of international standards and fostering the growth of the Nepali medicine market. Zinc tablet, which is useful for treating ringworm disease in children and popular among international companies, is a product of Deurali Janata Pharmaceutical (DJP). Radha Raman Prasad, Director at DDA, seems satisfied with the quality of Nepali pharmaceutical products. He says, “Few samples have been found lacking quality in the market due to some reasons but I think the overall quality of Nepali medicines is at par with international standards.” Experts involved in the business of medicinal products suggest drug producers to work collectively towards exporting Nepali medicines. Prasad admits that export is not just limited to the quality of the drug. He says that every country has some clauses and Nepal can fulfil those clauses. Some of the Nepali companies are even trying to export drugs to Singapore and Malaysia. “We are very rich in resources for pharmaceutical products, all we need is skilled manpower and the technology. Provided these aspects, we have huge potential for export,” he adds. The much awaited National Drug Policy has been drafted by the DDA. According to Prasad, efforts have been made during the preparation of the draft to address the issues of pharmaceutical industries. He says, “The draft focuses on new areas of thrust, in comparison to the previous policy which focused on export. It has a provision of contract manufacturing for technology input, providing incentive for R&amp;D activities, manufacturing, clinical research and attracting foreign countries for R&amp;D.” From a human resource perspective, students who have studied bio pharmacy abroad have started returning to Nepal. This development promises to enable companies to operate various researches. In August 2011, DDA permitted contract manufacturing of pharmaceutical products to the manufacturing contractors owning WHO-GMP certificate and licenses of the products. The Department of Commerce and Supplies and District Administration Offices are conducting inspections on a regular basis to find out sales of expired drugs and also making their findings public. GMP and GLP (Good Laboratory Practice) standards are meant to pave the way for assuring efficacy and quality of the drugs in the international market and are expected to ease the export of the products. Currently, there are 26 companies that are manufacturing pharmaceutical products by maintaining GMP standards. The rest are also in the process of obtaining GMP as the DDA has urged all non-GMP certified companies to come under GMP certification by the end of the year. <br />
	<br />
	<br />
	<img alt="" border="1" height="457" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs_11.jpg" vspace="5" width="401" /><br />
	<br />
	<strong>COVER STORY <br />
	</strong><br />
	<br />
	<strong>‘The Growth of Nepali Pharmaceutical Industries is Quite Appreciable’ <br />
	</strong><br />
	<img alt="" border="1" height="330" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/BABURAM-BHATTARAI.jpg" vspace="5" width="300" /><br />
	<br />
	<strong>BABURAM BHATTARAI <br />
	President <br />
	Nepal Chemist and Druggist Association <br />
	(NCDA) <br />
	<br />
	</strong><br />
	<br />
	<strong>How do you see the growth of Nepali pharmaceutical industries in recent times? <br />
	</strong><br />
	<br />
	The growth of Nepali pharmaceutical industries in recent time is quite appreciable. Around 42 per cent home demand is fulfilled by them so it can be considered satisfactory. I think the Nepali medicines are doing good business because the products are qualitative and the demand is increasing on a regular basis. I see a golden future for Nepali pharmaceutical products. <br />
	<br />
	As far as my knowledge is concerned, the level of consumption for most of the products made in Nepal is satisfactory and so is their supply system. However, most of the companies are producing the same types of medicine which has created unhealthy competition. <br />
	<br />
	<br />
	<strong>How is the production and export-import business of pharmaceutical products in Nepal? <br />
	</strong><br />
	<br />
	The history of allopathic medicine in Nepal is less than 100 years old. Medicine was used with the start of the modern medical system and during that time, pharmacy products were imported from different countries while such services were limited to only the big cities. The situation has changed now and we have many pharmaceutical companies established in our own country. Imported as well as home grown products are available even in the remote areas of the country today. However, it has not been smooth yet and the mishandling and misuse of drugs is a great threat. <br />
	<br />
	<strong><br />
	Counterfeit drugs is said to be one of the biggest challenges faced by the pharmaceutical industry. What is NCDA doing towards it? <br />
	</strong><br />
	<br />
	I agree with this statement to some extent. Basically, there are two reasons behind the availability of counterfeit drugs. The first one is that we share a open border with India and the second is that there are so many unregistered medical stores all over the country. The government monitoring system has not been effective enough. I don’t think that the NCDA member firms are involved in the supply of such medicines. The government should regulate these unregistered medical stores and bring them under the purview of the legal system. NCDA, on its part, is planning to release the list of registered medical stores and products available at these stores, on its website. It is always ready to support government initiatives to control the availability of counterfeit drugs. <br />
	<br />
	<br />
	<strong>Consumers often complain that the medicine prices vary from pharmacy to pharmacy. It is also said that the margin of profit is kept very high in pharmaceutical products. What do you have to say about such practices? <br />
	</strong><br />
	<br />
	I cannot agree with your statements. NCDA was established with the mission to supply qualitative, effective and safe drugs at affordable prices and we are always conscious regarding the uniformity of medicine prices. However, there may be some misuses from unregistered stores despite all our efforts and commitments. NCDA is committed to endorse the sale of medicines at their justified prices. However, if there are any complaints on account of price manipulation, please do inform to any of our NCDA branches so that we can regulate such pharmacies. <br />
	<br />
	<br />
	As for the margin of profit being high in pharmaceutical products, this is nothing but plain rumor. We are keeping the profit margin scientifically with the approval of the Nepal Government. <br />
	<br />
	<br />
	<strong>A great amount of medicines are sold on a daily basis without the doctors’ prescriptions. How risky is this for public health? <br />
	</strong><br />
	<br />
	This is a serious question that you have brought up. We all are quite aware about the health service standards in our country .We have a very limited numbers of doctors and that too, they are available only in the urban areas. Therefore, scores of villagers do not have access to services provided by doctors. This explains the situation of no prescriptions where there are no doctors. You have to acknowledge the fact that the patients have to get medicines anyway. Nowadays, the paramedics (HA, CMA &amp; ANM) are dispensing medicines in the remote areas. The government is not bothered about this problem and many serious health hazards occur due to the state’s apathy towards health services. <br />
	<br />
	<br />
	<strong>The shortage of general medicines in rural areas often inconveniences many families in Nepal. What’s your take on this? <br />
	</strong><br />
	<br />
	Although our business is a service business, there is a profit motive as well. The few pharmacy assistants and professionals that we have in the country confine themselves to the densely populated areas because they want to do good business. However, there are so many remote areas where there is no storage of general medicines but the problem is that the pharmacy dispensers are not available in such areas. I have also repeatedly drawn the attention of the concerned authorities to run orientation training targeting these areas so that the problem of dispensing medicines can be solved to a large extent. <br />
	<br />
	<br />
	<strong>How wealthy are we in terms of human resources especially in the production, marketing and distribution of pharmaceutical products? <br />
	</strong><br />
	<br />
	As far as the availability of human resources is concerned, let me assure you that many pharmacists and pharmacy assistants are produced every year. The number of pharmacy colleges is also increasing. Most of the pharmacists are employed in industries and academics whereas the pharmacy assistants are engaged in dispensaries. But the tragedy is they are not available in the remote areas. <br />
	<br />
	<br />
	<strong>The Nepali pharmaceutical industries asked the government to stop importing Indian drugs sometime ago. Can it be considered reasonable in a liberal market economy? <br />
	</strong><br />
	<br />
	Nepal is a small country in comparison to our neighbors and the market of any product is limited. It is not bad to promote indigenously produced medicines until our economy is competitive enough to export. Billions of rupees have been invested in the pharmaceutical industries. I think it’s the duty of the government to support these companies by whatever means possible. <br />
	<br />
	<br />
	<strong>What is the possibility for exports of Nepali drugs abroad? What are the challenges in this regard? <br />
	</strong><br />
	<br />
	I don’t see any possibility of Nepali medicines for export in the current context. Even though all the companies of Nepal follow the WHO GMP standard, different countries may have different technical standards. The private sector effort to export medicines may not be an effective one. The government initiation is the primary requisite and a must to realize export efforts. <br />
	<br />
	<br />
	<strong>COVER STORY <br />
	<br />
	<br />
	‘The Overall Quality of Nepali Medicines is at Par with International Standards’ <br />
	</strong><br />
	<br />
	<img alt="" border="1" height="330" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/RADHA-RAMAN-PRASAD.jpg" vspace="5" width="300" /><br />
	<br />
	<strong>RADHA RAMAN PRASAD <br />
	Director General <br />
	&amp; Chief Drug Administrator <br />
	Department of Drug Administration <br />
	</strong><br />
	<br />
	<br />
	<strong>How do you see the growth of Nepali pharmaceutical industry in recent times? <br />
	</strong><br />
	<br />
	New industries are entering into the market but most of them are producing ‘me too’ drugs. The competition is heightening among such kind of drugs. The trend of new industry registration shows that producers are willing to produce similar kind of products that already exist in the market. Such a trend is more common than producing vital drugs and competing with imported products which may help reduce imports and market share of imported drugs. Although new industries have taken industry establishment reference letter for producing large volume drugs, further progress is not seen in the actual establishment of industries. It is very important to produce large volume drugs with quality but little progress has been made towards it. Even though producers are promising to do it, it has not happened till date. <br />
	<br />
	<strong><br />
	New industries are being established every year. Do you see potential in them to make the country self sufficient in drugs and reduce imports? <br />
	</strong><br />
	<br />
	It is not that they do not have the capacity to produce to the extent of self sufficiency but it is limited to specific drugs. The environment for producing numerous drugs to the extent of self sufficiency has already been created but not for all medicines. Nepali companies have a market share of 43 per cent. If vaccines, contraceptives, ARV (Anti Retroviral), large volume drugs and few others are excluded, Nepali companies will have a bigger market share. Some companies have an almost equal market position as Indian companies. Ethical promotions and marketing strategies have helped them create a niche in those sectors. Nepali drug industries have their presence in almost every part of the country. <br />
	<br />
	<br />
	<strong>Around 60 per cent of the drugs market is covered by the foreign companies. How can the share of Nepali industries be increased? <br />
	</strong><br />
	<br />
	The consumers of medicines are mostly the prescriber groups. So, the confidence of the doctors and prescribers needs to be won with ethical marketing and by offering qualitative drugs. This will help to increase the market share. However, only over-the-counter sales and promotion through pharmacies cannot deliver good results compared to ethical promotions. <br />
	<br />
	<br />
	<strong>Although imported drugs are said to be expensive than locally produced ones, why aren’t Nepali medicines preferred by the prescribers? How can Nepali products be promoted? <br />
	</strong><br />
	<br />
	It is necessary to look minutely into actual pricing. Some local drugs may be cheaper but it is difficult to say that products from established brands are actually cheaper. Such products are priced similar to the imported drugs. Quality assurance is the most important factor for promoting Nepali industries. Numerous producers and their associations as well as the DDA have moved towards quality assurance through various measures like complying with the WHO GMP standards. All the stakeholders are moving ahead keeping in mind quality as their central motive. It is a matter of satisfaction that Nepali industries are committed to quality assurance and they too are producing international standard drugs. Even though few samples have been found lacking quality in the market due to some reasons, I think the overall quality of Nepali medicines is at par with international standards. Many industries are now shifting to new locations, upgrading their technologies and carrying out renovation of their production units. Once quality is promised to the consumers, the market share will definitely increase. <br />
	<br />
	<br />
	<strong>It is often said that substandard medicines are being imported and expired medicines sold in pharmacies. What is your take on this situation? <br />
	</strong><br />
	<br />
	At times, it’s not only the drugs imported from India but also the Nepali drugs that are found to be below standard. However, we cannot generalise the situation and say that all products lack quality. There have been cases like discovering some particles on tablets and solidified dry syrup but these are exceptions. We have not found the entire batch of a particular medicine failing in case of one or two samples that are found defective. If the temperature is not adjusted as per the requirement during storage, some medicines change colour naturally over time. A pharmaceutical company produces drugs which is transferred to distributors, then to retailers and finally to the consumers. If the quality is not assured in the supply chain, some complications may arise despite the producer maintaining optimum quality. The producers are slowly getting conscious about it and the DDA too is committed to move towards this direction. <br />
	<br />
	<br />
	Regarding the sales of expired drugs, it is very important to maintain a good pharmacy and dispensing practice. The pharmacy workers must properly look at the prescriptions and scrutinise the medicines before selling them and also give proper information to the buyers. When this system is not practiced, there is a chance of expired drugs getting sold. Substandard and expired drugs must be filtered at the time of sales. At present, there are inspections carried out by the Department of Commerce &amp; Supplies and District Administration Offices to detect sales of expired drugs. Such activities have definitely brought a lot of awareness among consumers and also controlled such incidences. <br />
	<br />
	<br />
	<strong>Counterfeit drugs is also said to be one of the biggest challenges faced by the industry. What is DDA doing towards it? <br />
	</strong><br />
	<br />
	We have not found counterfeit drugs as of now. It’s true that we have found some medicines that are not registered here but they are not counterfeit in the true sense of the term. Such unregistered drugs are confined to around four-five types which have high difference in their prices such as Ciprofloxacin, Omeprazole and some aphrodisiac drugs. We have been carrying out awareness campaigns asking customers to mandatorily take bill on the purchase of drugs which will prevent buying of unauthorised drugs. A conscious citizen must as for bill on purchase of medicines and also seek information about the medicines. <br />
	<br />
	<br />
	<strong>What is the level of competition of Nepali pharmaceutical companies among themselves as well as with the foreign companies? <br />
	</strong><br />
	<br />
	The competition has always been there but it should now focus on quality while competing with ‘me too’ drugs in the market. Earlier, cardiac medicines were not produced within Nepal but now we have them. We also did not have the doctors’ confidence about higher antibiotics but now they prefer Nepali products. These are definitely very good signs. We have been monitoring and conducting inspection of Nepali industries, overseeing their quality and standard etc so we encourage using Nepali drugs with confidence. This confidence has also led Nepali industries beginning to tap the foreign market in recent times. <br />
	<br />
	<br />
	<strong>Raw materials as well as finished drugs are being imported at present. Which one is beneficial for our market situation? <br />
	</strong><br />
	<br />
	The Nepali industries are compelled to import raw materials to produce drugs here because we are not API (Actual Pharmaceutical Ingredients) manufacturers. Therefore, it is necessary to import raw materials. In the current global context too, there is no base to deny import of any products. When the market is dictated by the Nepali industries, the foreign companies that cannot compete will automatically exit. <br />
	<br />
	<br />
	If Nepali companies can produce drugs here, the human resource can be rightly utilised. The availability of human resource is cheaper in Nepal than anywhere else. Qualified human resource is being produced within the country and at the same time, semiqualified human resource is equally available. We have a condition to import quality raw materials at competitive prices. It also creates employment not only in the production line but also in the marketing of products. The industries also pay taxes to the state so from that perspective, local industries must be promoted. <br />
	<br />
	<br />
	<strong>It is said that there is huge potential for export of medicines to India along with other markets. How much have we cashed in on this potential? <br />
	</strong><br />
	<br />
	That potential has not been adequately explored as of now. A few industries that have reached a certain level of success in the local market have started looking towards those markets. All the drug producers must collectively move towards this direction to explore the potential. <br />
	<br />
	<br />
	<strong>COVER STORY <br />
	<br />
	</strong><br />
	<strong>‘We have Gained Trust from the Consumers because of our Quality Products’ <br />
	<br />
	<br />
	<img alt="" border="1" height="214" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/MAHESH-GORKHALI.jpg" vspace="5" width="300" /><br />
	<br />
	MAHESH GORKHALI <br />
	President <br />
	Association of Pharmaceutical <br />
	Producers of Nepal (APPON) <br />
	</strong><br />
	<br />
	<br />
	<strong>How do you see the growth of Nepali pharmaceutical industry in recent times? What is the kind of investment required to establish a pharmaceutical industry at present? <br />
	</strong><br />
	<br />
	As per an estimate, we are growing at around 15 to 20 per cent annually. The cost of establishing a pharmaceutical industry in the country generally depends on the number of segments that the investors target to operate with. Pharmaceutical industries cover different segments like – tablets, capsules, liquids, injectables etc. If an industry tries to cover all these segments, high investment is required. At the same time, low investment can enable an industry to operate with a single segment. As per our calculation, anywhere from Rs 25 to 300 million investment is required for a company producing tablets, capsules and liquids depending upon the choice of the machinery equipments, building, location etc. Establishing an industry in city areas is usually costlier when compared to the terai or hilly region. <br />
	<br />
	<br />
	<strong>How is the production and export-import business of pharmaceutical products doing in Nepal? <br />
	</strong><br />
	<br />
	There are altogether 45 Nepali companies operating in our market. Investors generally produce materials which they can sell even if they have a high production. There is a wide variant of medicines available in the market and we are capable of producing some of these, for example, Paracitamol tablets which are popular as citamol in Nepali households. To meet the remaining demand, we import a good amount of medicines from India, Bangladesh and some other countries. The export potential of Nepali medicines has not been tapped as yet. Nepali pharmaceutical companies occupy around 40-45 per cent market share while the rest is of foreign companies. Our companies can increase their market share only if we could expand our businesses massively. If we do not want to be contended only in the national market, we must grow and focus on exports. <br />
	<br />
	<br />
	<strong>How favorable is the government’s policy regarding the pharmaceutical industry? <br />
	</strong><br />
	<br />
	We don’t find a clear-cut policy of government for the development of Nepali pharmaceutical industries. As such, the pharmaceutical market is rapidly growing internationally and we are obliged to introduce and produce newer medicines or molecules to survive in the market. Since we lack manpower in developing newer molecules, we try to import them as soon as they are developed. Department of Drug Administration (DDA) under the Ministry of Health regulates our companies but it usually hesitates to provide a license whenever we apply to import a new molecule. It says that the molecule is not mentioned in Pharmacopeia - a book where every medicine is featured. Actually, medicines are featured in Pharmacopeia sometime later after the invention. It’s the responsibility of the government to either perish or nourish the pharmaceutical sector as the citizens of this country have the right to have proper medications. By permitting to import newer molecules, providing incentives or soft loans and declaring tax holidays for some years will definitely create good environment for the pharmaceutical sector. The government must also act as a responsible body by addressing problems such as the shortage of powerhouse, in consultation with the stake holders. I think that the Ministry of Health has so many responsibilities and hence, they may not be able to look after the manufacturing industries properly. Nonetheless, I believe they will formulate some good policies in the near future to encourage new investors when they realize our potential as a growing industry. <br />
	<br />
	<br />
	<strong>What are the challenges of the Nepali pharmaceutical industry in meeting the demand of pharmaceutical products in the market? <br />
	</strong><br />
	<br />
	Around 250 companies are involved in importing medicines from other countries so the biggest challenge we have is the faith of the consumers on Nepali products. The pharmaceutical market normally grows with the increase in the prescriptions or the number of the prescribers. We have gained that kind of trust from our consumers because of the quality products we deliver. All the leading doctors and medical experts prescribe Nepal made products which means the main challenge is already taken care of. Another challenge is to introduce newer molecules. <br />
	<br />
	<br />
	We need some lab testing which are often tedious, time consuming and expensive. We need to maintain refresh standard for which we don’t have the facilities but that can be procured. Furthermore, we have to develop our human resources including the marketing professionals so we are conducting different trainings and workshops to improve their capabilities. <br />
	<br />
	<br />
	<strong>What is the benefit of importing pharmaceutical products from India? What kind of competition have domestic factories been facing with hundreds of Indian products and companies in the domestic market? <br />
	</strong><br />
	<br />
	While moving from illness to wellness in the case of human health especially, pharmaceutical products have proved to be one of the essential elements in curing diseases. However, we don’t produce all kinds of medicines. For instance, we don’t produce saline water which is considered as an urgent medication for many diseases. We import it mainly from India as medicines such as this are beneficial to human health. <br />
	<br />
	<br />
	Competition between companies is natural in every business and pharmaceutical industries are no exception. Competition with importing companies is ethical in our business. However, there seems to be a fierce competition between the Nepali companies because of similar medicinal products and limited customers. Everybody wants to promote his own brand and the more number of companies, the more number of brands are there. <br />
	<br />
	<br />
	<strong>Although imported drugs are expensive than locally produced ones, why aren’t Nepali medicines prescribed much? <br />
	</strong><br />
	<br />
	This is untrue as majority of the doctors are prescribing our medicines. This is the reason why we are having 40- 45 per cent market share despite having competition from so many foreign companies. There has been a good promotion of our medicines and the doctors prioritize them whenever they prescribe the medicines to the patients. <br />
	<br />
	<br />
	<strong>How wealthy are we in terms of human resources especially in the production, marketing and distribution of pharmaceutical products? <br />
	</strong><br />
	<br />
	Initially, we had a real problem with human resource be it the marketing or production areas. It was very hard to train young graduates especially those without a science background. Thus the promotion of the products used to be a difficult task in the past. <br />
	<br />
	<br />
	In production also, there were not enough graduates who could earlier meet our criteria. However, there are 17 - 18 colleges now with pharmacy as a major subject. They are producing a good number of bachelors every year that can be utilized in pharmaceutical industries. We don’t have scarcity of such manpower now. <br />
	<br />
	<br />
	However, we don’t have quality manpower who could import newer molecules from foreign countries. Good companies have been providing trainings for their employees and sending them to different countries like Japan, Bangladesh and India for their capacity enhancement. They are improving and we hope that we will produce the required manpower for this sector as well. <br />
	<br />
	<br />
	<strong>It is said that the margin of profit is kept very high in pharmaceutical products. What do you have to say about that? <br />
	</strong><br />
	<br />
	Even though it seems so, it is not true. Actually, certain products have really high margins mainly because of the high expenses involved in their production. To produce a single medicine, we import different raw materials including chemicals and packaging materials. Besides, producing quality medicine is a very lengthy and time consuming process. There are other costs involved too which make medicines more expensive, for example, the marketing aspect. Whatever is the margin, the fact is that the product must be sold because without the sale of a product, there can be no profit. <br />
	<br />
	<br />
	<strong>It is said that there is a huge potential for export of medicines to India along with other markets. How much have we cashed in on this potential? <br />
	</strong><br />
	<br />
	Let me give you an example when my company used to export medicines in India a few years ago. We had applied to the Indian authorities for exporting medicines to which they agreed and we started to send our medicines. However, despite having all the certification and documents of our products, they would put our stock in their quarantine office once it reached Raxaul in India. They would say that approval can be provided only after some lab testing but by the time they did so, it would be already six months late. Another three months would be spent for lab testing so it’s only after nine months that we would be able to get the approval to supply our medicines in the Indian market. The same process would apply for each consignment. After all this, the Indian retailers would not agree to keep medicines having less than six months of validity. It continued for two years and we had a business of Rs 50-60 million only. After two years, we could not undergo the criteria once they applied a new system for Nepali companies. It became costlier and that is when we stopped exporting our products. However, we are again targeting India for the expansion of our products and hopefully, we will be successful in our endeavour. <br />
	<br />
	<br />
	<strong>Raw materials as well as finished products are being imported at present. Is it beneficial for our market? <br />
	</strong><br />
	<br />
	Yes, it is. We cannot produce medicines without raw materials and finished products since we don’t have the big plants to produce chemical and other essential materials. We don’t need to produce raw materials ourselves because of the limited market we have. Unless we expand our market, we can continue to import these items. <br />
	<br />
	<br />
	<strong>COVER STORY <br />
	</strong><br />
	<br />
	<strong>‘Maintaining GMP and GLP Standards will give Credibility to our Products Internationally’ <br />
	<br />
	<br />
	<img alt="" border="1" height="204" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/MOHAN-PRASAD-AMATYA.jpg" vspace="5" width="300" /><br />
	<br />
	MOHAN PRASAD AMATYA <br />
	Chief <br />
	National Medicine Laboratory <br />
	<br />
	<br />
	</strong><br />
	<strong>What is the major function of the National Medicine Laboratory? <br />
	</strong><br />
	<br />
	Our main objective is to ensure that safe and effective medicines are available in the Nepali drug market. Though it is the Department of Drug Administration (DDA) that awards license to pharmaceutical factories, it is our responsibility to test and evaluate the standard of their laboratories and drugs and refer them for the registration. Factories should obtain market license for each of their products. We develop Reference Standard and make it available to the pharmaceutical companies and laboratories. We also inspect retail and wholesale pharmacies to check the quality of drugs. The price monitoring of the marketed drugs is within our scope of work and we deploy drug inspectors for this task. They visit the market on a regular basis, purchase drugs from the pharmacies and bring it to us. We inspect quality, composition, packaging and every other detail of these drugs. If such drugs are found below the standard, we report it to the DDA which recalls these products from the market. Similarly, we visit laboratories and inspect products of foreign countries before importing them to Nepal. <br />
	<br />
	<br />
	<strong>Pharmaceutical companies also have their own laboratories. How good are they? <br />
	</strong><br />
	<br />
	A pharmaceutical company must set up its own laboratory. We visit their laboratories and conduct a thorough inspection. Aspects like hygiene of the lab and precautions taken for the safety of its manpower, availability of equipments and trained manpower, location of the lab and its space, structure of the building, availability of water and other resources are taken into account while giving approval to the laboratories for production. We visit them regularly even after the approval Therefore, we must say that existing labs have been maintaining the required standard. Of course, there is a lot of scope for improvement and it’s a continuous process. All in all, they are good. <br />
	<br />
	<br />
	<strong>Out of 49 pharmaceutical factories operating in Nepal, only 26 have been producing pharmaceutical products under the World Health Organisation’s (WHO) Good Manufacturing Practice (GMP). Why is this number so low? <br />
	</strong><br />
	<br />
	It’s been about 8 years that Nepal became a member of the WTO. However, our pharmaceutical companies were established long before we got associated with the WTO. At that time, our aim was to encourage people to invest in the pharmaceutical sector so that the country can gradually substitute imported medicines. The procedure to obtain operating licenses was not that strict. Now that the country has entered an agreement with the WHO to maintain its GMP standard, we could not ask them to upgrade their laboratories and manufacturing units overnight. It requires huge capital for a company to be at par with the international GMP standard. The DDA has been asking the existing factories to upgrade themselves time and again by allowing a certain time-frame to them. In fact, the DDA has directed all existing pharmaceutical companies to upgrade themselves by the end of this year. Because of this provision, many companies have applied for GMP and few of them have already received the certification. However, there are still some companies that have not applied for this process. I believe the DDA will take adequate measures against such factories in the future. <br />
	<br />
	<br />
	<strong>Have all the pharmaceutical companies been maintaining Good Laboratory Practices (GLP)? <br />
	</strong><br />
	<br />
	It is very essential to maintain GLP to establish a pharmaceutical industry. Companies that do not maintain GLP are not allowed to begin production. Before any pharmaceutical product is produced, we check whether the laboratory has used standard raw material and put the lab in the suitable location and purchased good quality machines or not. When the product is made, we analyse its composition, packaging, punching, amount of active drug in the medicine and its storage. These aspects fall under GLP and we make sure that factories are up to the mark on each of these aspects before granting it permission to operate. To make our existing factories concerned about GLP, we conduct trainings on this aspect regularly. <br />
	<br />
	<br />
	<strong>What special benefits will we have by producing pharmaceutical products in line with the WHO’s GMP and GLP guidelines? <br />
	</strong><br />
	<br />
	Maintaining GMP and GLP standards will give credibility to our drugs in the international market. It will eventually pave way for the export of our products. Though there are only 26 pharmaceutical manufacturing companies that have been producing products maintaining GMP standard, about five companies are in the process to get the certification. We will be visiting their manufacturing plants and the laboratories to refer for the certification. <br />
	<br />
	<br />
	<strong>So, we do have an opportunity to export our products. <br />
	</strong><br />
	<br />
	Export is not just limited to quality of the drug. Every country has a specific policy about importing drugs from another country. If our country can fulfil those clauses, we won’t have problem in exporting our products. Even India that has been exporting its products to almost all corners of the world, is willing to import drugs from us. But it has set some clauses regarding drugs import. If we can fulfil these clauses, India can be a potential market for our medicines. Therefore, export is more related to the policy of a specific country. Some of our companies are trying to export drugs to Singapore and Malaysia as well. We are very rich in resources for pharmaceutical products. All we need is skilled manpower and the technology. Provided these aspects, we have huge potential for export. <br />
	<br />
	<br />
	<strong>What sort of drugs are we strong in and where do we still need to do research? <br />
	</strong><br />
	<br />
	The domestic production has been able to fulfil 60 per cent of the current demand. For the remaining 40 per cent, we have to be dependent on imports. We are strong in therapeutic drugs but we still have to be dependent on imports for injectable drugs and biological products. It takes a huge capital and expert manpower to produce such drugs. The labs need to be sterilised and made aseptic to produce these medicines. Even the building has to be designed in a specialised way for such drugs. There are only two or three companies that have been producing biological products. Most of the demand for injectable and biological drugs is fulfilled through imports. <br />
	<br />
	<br />
	<strong>What is the status of human resource in the pharmaceutical sector? <br />
	</strong><br />
	<br />
	In the last few years, pharmaceutical sector has been witnessing a growth in the quantity of trained manpower. The existing four universities of our country have been producing manpower for this sector. Kathmandu University (KU) has been operating classes of pharmacy at the Bachelor, Masters and the Doctorate levels. Tribhuvan University (TU) also runs a bachelor level programme while Purbanchal Univeristy (PU) has given affiliation to about 19 colleges to operate pharmacy classes. Similarly, Pokhara University also has a Bachelor of Pharmacy programme. So, around 500 students graduate in this sector annually. <br />
	<br />
	<br />
	<strong>Where do these graduates get job placement? <br />
	</strong><br />
	<br />
	A large number of students with Bachelor degree in pharmacy open their own pharmacies while some others work in pharmaceutical factories, laboratories and hospitals. A few of them pursue a teaching career but most graduates from the Institute of Medicine (IOM) and Kathmandu University go abroad in search of greener pastures. The flow of application for establishing pharmaceutical factories was high a few years back but the present political situation has been a hindrance in establishing new factories. Therefore, the graduates find the overseas market better for greater exposure. If the country could emerge from the present political turmoil, they too can find employment opportunities in their own country. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-10-10',
			'keywords' => '',
			'description' => 'Nepal’s pharmaceutical expense is at par with other South Asian countries, thanks to the increase in the number of pharmaceutical companies and their production. In 2008, the total per capita pharmaceutical expenses was US$ 6.96 while the total amount of pharmaceutical expenses stood at Rs 13.09 billion in Nepal',
			'sortorder' => '558',
			'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' => '659',
			'article_category_id' => '52',
			'title' => 'Tunnel To Prosperity',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<br />
	<strong><img alt="From the editor" border="1" height="262" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/editoiral.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	The commercial viability of Kathmandu-Kulekhani-Hetauda road tunnel is unquestionably attractive given the traffic pressure it is likely to have. <br />
	</strong><br />
	<br />
	Nepal Infrastructure Development Company, a private sector initiative led by Immediate Past President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has shouldered the task of opening up the Kathmandu-Kulekhani-Hetauda road tunnel. This tunnel would substantially reduce the length of the road connecting Kathmandu with Hetauda to 50 km. <br />
	<br />
	<br />
	Fully functional roads that now connect Kathmandu with Hetauda are much longer. The most used Kathmandu- Mugling-Narayanghat-Hetauda road’s length is 224 kilometers (kms) while the largely discarded Tribhuvan Highway is 133 kms. The proposed fast track will be about 80 kms long and would open at a point of some 20 kms east of the main town of Hetauda. However, the distance with this tunnel would be only about 50 kms and the total travel time from Kathmandu to Hetauda will reduce to barely one hour. The pace of progress in the work to construct the tunnel has been more than impressive; demonstrating the advantage that a private sector led project can have even in infrastructure development aspect. The Company has also been a first test case of much talked about Public-Private Partnership and serves as the actual implementation of BOOT (Build, Operate, Own, and Transfer) model through a project entirely financed domestically. This also sets an example of how a large sized investment of about Rs 20 billion for this project alone could be generated within the country if a viable project is chosen and all users and stakeholders are made effective owners of the project. <br />
	<br />
	<br />
	Since the company got license in the third week of May 2012 from the government, it has created a tight timeline to complete the Detailed Project Report (DPR) by the end of November. The commercial viability of the tunnel is unquestionably attractive given the traffic pressure it is likely to have. This model also constitutes a rationale that the carrying capacity of the tunnel should also be fixed by the research on existing and potential increase in traffic flow between Hetauda and Kathmandu. <br />
	<br />
	<br />
	Most importantly, without upgrading the total stretch of the Balkhu-Pharping- Kulekhani-Hetauda road, only the proposed tunnel of mere three-kilometer length is unlikely to give any substantial benefit to the national economy and return to the investors. Had the entire road length been part of this project, it would only have delivered results as aspired. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-10-10',
			'keywords' => '',
			'description' => 'Nepal Infrastructure Development Company, a private sector initiative led by Immediate Past President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has shouldered the task of opening up the Kathmandu-Kulekhani-Hetauda road tunnel. This tunnel would substantially reduce the length of the road connecting Kathmandu with Hetauda to 50 km.',
			'sortorder' => '557',
			'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) 6 => array(
		'Article' => array(
			'id' => '658',
			'article_category_id' => '60',
			'title' => 'Etihad Buys Stakes In Virgin Australia',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="edihad" border="1" height="155" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/etihad.jpg" vspace="5" width="326" /><br />
	<br />
	<br />
	Etihad Airways, the national airline of the United Arab Emirates, has acquired a 3.96 per cent stake in Virgin Australia Holdings. According to a press statement, the stake has been built over recent weeks, through purchases in the open market. <br />
	<br />
	<br />
	The press statement reads, “Etihad Airways believes that this equity investment in Virgin Australia’s domestic operations significantly strengthens the 10-year strategic partnership forged by the two carriers in August 2010. It will enrich the commercial benefits which the alliance already provides for both airlines, as well as increasing the benefits to Australian consumers and visitors to Australia.” <br />
	<br />
	<br />
	Together, Etihad Airways and Virgin Australia operate 24 flights a week between Abu Dhabi and Australia and passengers have access to a combined network of more than 150 destinations, says the statement. Etihad Airways began flying to Australia in March 2007 when it launched services to Sydney. Melbourne and Brisbane were quickly added thereafter. Nearly 2.2 million passengers have been carried between Abu Dhabi and these three cities in the last five years. <br />
	 </p>',
			'published' => true,
			'created' => '2012-08-13',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Etihad Airways, the national airline of the United Arab Emirates, has acquired a 3.96 per cent stake in Virgin Australia Holdings. According to a press statement, the stake has been built over recent weeks, through purchases in the open market.',
			'sortorder' => '556',
			'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) 7 => array(
		'Article' => array(
			'id' => '657',
			'article_category_id' => '60',
			'title' => 'Qatar Airways CEO Al Baker On IATA Board',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="qatar" border="1" height="129" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/qatar1.jpg" vspace="10" width="400" /><br />
	<br />
	<strong>Qatar Airways CEO Akbar Al Baker has been voted onto IATA, the Board of Governors of the global aviation industry body. <br />
	</strong></p>
<p>
	 </p>
<p>
	Qatar Airways Chief Executive Officer Akbar Al Baker has been voted onto the Board of Governors of the global aviation industry body, International Air Transport Association (IATA). Al Baker was selected by fellow airline executives attending IATA’s annual World Air Transport Summit in Beijing this week. <br />
	<br />
	<br />
	His is a newlycreated position to increase representation for Middle East carriers on the revamped 10-member IATA board. Qatar Airways has also announced an engaging social media photo contest titled ‘Reflections’. Through this contest, the airline is giving away attractive prizes – Business and Economy Class air tickets and a total of 1.6 million Privilege Club Qmiles. The airline is inviting up to eight photos under the categories namely – Vibrant Cultures, Magnificent Cities, Breathtaking Nature and Exciting Journeys. <br />
	<br />
	<img align="left" alt="qatar" border="1" height="227" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/qatar(3).jpg" style="width: 224px; height: 227px;margin:10px;padding:10px;" vspace="10" width="224" />“Professional and amateur photography enthusiasts may upload photos, share them across their social network and invite support from their friends, family and followers in the form of votes. They can also view, vote on, and share photos submitted by other contestants to accumulate points. Each point they thus earn converts into a lucky draw entry,” reads the press release. Prizes include 10 Business and 50 Economy Class tickets. Qatar Airways Privilege Club programme is offering a mammoth 1.6 million Qmiles to be shared among the winners. <br />
	<br />
	<br />
	Qatar Airways has also enhanced its operations with the acquisition of comprehensive aircraft recovery equipment – the first airline in the world to own the complete state-ofthe- art kit. There are just 11 complete kits globally, but parts within each kit are owned separately by individual airlines and airports worldwide. At an investment of US$3.2 million, the equipment enables the airline’s Doha hub to be capable of recovering equipment parts of any aircraft type following an incident which renders an aircraft non operational. <br />
	<br />
	<br />
	In the span of just two weeks, Qatar Airways has expanded passenger services to Iraq with the launch of its second destination in the country –the capital city of Baghdad. The Doha-based airline is operating four-flightsa- week non-stop on the Baghdad route. The move came just two weeks after Qatar Airways launched flights, also fourtimes- a-week, to the northern Iraqi city of Erbil. <br />
	 </p>',
			'published' => true,
			'created' => '2012-08-13',
			'modified' => '2012-12-18',
			'keywords' => '',
			'description' => 'Qatar Airways CEO Akbar Al Baker has been voted onto IATA, the Board of Governors of the global aviation industry body.',
			'sortorder' => '555',
			'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) 8 => array(
		'Article' => array(
			'id' => '655',
			'article_category_id' => '60',
			'title' => 'Oman Air Begins  Muscat-Tehran Service',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p class="MsoNormal">
	<img alt="oman airways" border="1" height="167" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/oman.jpg" vspace="5" width="466" /><br />
	<br />
	<br />
	<span style="font-size:24.0pt;line-height:115%;font-family:
">&nbsp;</span></p>
<p class="MsoNormal">
	<strong><span mso-bidi-font-family:="" style="font-size:
12.0pt;font-family:">The airline recently introduced complete cell phone and</span> <span style="font-size:12.0pt;line-height:115%;font-family:
">Wi-Fi connectivity aboard Oman Air’s Airbus A330 aircraft.</span></strong></p>
<p class="MsoNormal">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal;">
	<strong><span style="font-size: 24pt; line-height: 115%; font-family: ">&nbsp;</span></strong><br />
	<span mso-bidi-font-family:="" style="font-size:
41.0pt;font-family:">O</span><span style="font-size: 10pt;">man Air is set to launch a new daily service between Muscat and the Iranian capital Tehran from September 1. Flights will depart Muscat for Tehran at <br />
	200hrs (3 days per week) and 0930hrs (4 days per week) and return from Tehran at 0710hrs (3 days per week) and 1340hrs (4 days per week) - all times local - offering good&nbsp; connections to onward destinations within the Oman Air’s network. <br />
	</span></p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal;">
	<span style="font-size: 10pt;">According to the company’s press statement, the new Muscat-Tehran route will be operated using Oman Air’s new Embraer 175 regional jets, which is said to offer superb levels of comfort in both Business and Economy Classes. “The addition of the new service to Tehran continues the rapid growth of Oman Air over the last 30 months,” says the company.&nbsp; <br />
	</span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
normal;mso-layout-grid-align:none;text-autospace:none">
	<span style="font-size:
10.0pt;font-family:"><br />
	</span></p>
<p class="MsoNormal">
	<span style="font-size:
10.0pt;font-family:">The airline has also recently introduced a range of new products and services, including the complete cell phone and Wi-Fi connectivity aboard Oman Air’s Airbus A330 aircraft.The statement further claims, “Over the same period, revenues and passenger numbers have increased dramatically, with customers showing their approval of the airline’s combination of quality and value by not only booking further flights, but also voting for Oman Air in a series of awards.” Oman Air has bagged the ‘Service Excellence, Middle East’ and ‘Best Business Class Seat in the World’ prizes at the World Airline Awards 2011 organised by Skytrax, as well as the 2012 Business Destinations Travel Award for ‘Best Business Class </span><span style="font-size:10.0pt;line-height:115%;font-family:
">Airline, Middle East’.<br />
	<br />
	</span></p>
<p>
	 </p>',
			'published' => true,
			'created' => '2012-08-13',
			'modified' => '2012-08-13',
			'keywords' => '',
			'description' => 'The airline recently introduced complete cell phone and Wi-Fi connectivity aboard Oman Air’s Airbus A330 aircraft.',
			'sortorder' => '554',
			'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) 9 => array(
		'Article' => array(
			'id' => '654',
			'article_category_id' => '31',
			'title' => '‘A Number Of Nepali Banks Are Interested In IS Audits’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<br />
	<img alt="visiting business People" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/julyvisitingbusinesspeople(1).jpg" style="width: 195px; height: 273px;" vspace="5" /><br />
	<strong><br />
	Rajesh Deo is a Security Analyst in the Technical Assessment Team at NII Consulting, a well-established provider of information security services and products, based in Mumbai, India. <br />
	</strong><br />
	<br />
	He specialises on conducting Security Audits, Vulnerability Assessment and Penetration Testing for NII’s premier clients. Deo holds Certified Professional Hacker (CPH), Certified Professional Forensic Analyst (CPFA) and Certified Information Security Professional (CISP) certificates from the Institute of Information Security, the training wing of Network Intelligence India Pvt Ltd. He was recently in Kathmandu to participate in a security awareness workshop. The workshop was focused on general properties of information security, its nitty-gritty, demonstrations of security network tools and Information Security Auditing. In an interview with New Business Age, Deo talked about various issues related to security audits. Excerpts: <br />
	<br />
	<strong><br />
	What brings you to Nepal this time? <br />
	</strong><br />
	<br />
	I am here to participate in the security awareness workshop. We will be conducting general introduction to information security and IT security. I hope this will be beneficial to the business community at large in Nepal because almost all sorts of businesses today require computing system in one way or another. So, it becomes important to have a security system so that there is no infiltration into the computer system that will misuse valuable data and stored information. <br />
	<br />
	<strong><br />
	What is the difference between IT security and information security? </strong><br />
	<br />
	<br />
	IT security is a specific area that targets computer system whereas information security encompasses everything. Information could be a regular paper, or data or any other product a company may develop and all of that becomes part of information security. So, when you talk of information security audits, it also audits business growth. <br />
	<br />
	<strong><br />
	What are the products and services NII is currently offering? </strong><br />
	<br />
	<br />
	NII is primarily into information security consultancy. We also have a product business with our sister concern called Institute of Information Security through which we do a lot of trainings. On the product side, we provide product support for products such as antivirus, anti-spam solutions, firewall products, data leakage prevention solutions and source code auditing – a unique area we specialise on. We are starting a new area where we are going to analyse mobile applications. We are planning to analyse java applications on an android platform. <br />
	<strong><br />
	<br />
	Is there any difference in the extent of vulnerabilities faced by the corporate sector in the South Asia region when compared to that of western developed countries? </strong><br />
	<br />
	<br />
	I don’t think there are any specific differences. We face the same challenges that our western counterparts are going to face or have already faced. The difference is in the sense that the western counterparts already have information system for a longer period of time. So, their approach to audit system is more matured. Having said that, we actually have the benefit of having that knowledge ahead of it and there could be specific challenges in terms of the process because our process is different than their processes. Auditing the security system and making sure that they are fraud proof and security around them is well built, is the important part. <br />
	<br />
	<strong><br />
	With the invention of new technology and security systems, newer forms of threats are coming along. How challenging has it been to maintain security in the present situation? <br />
	<br />
	</strong><br />
	Mobile threats are becoming a major arena. There is significant penetration of mobile computing that is going on currently in the South Asia region. A lot of people want to operate their bank accounts through their mobile phones so it becomes an attractive target for frauds. It is important to consider that area as the emerging factor. Basically, all mobile devices – android based devices, iOS based devices and tablets – are coming into extensive use not just on a personal level but also in business. Companies allow you to bring your own device but they want to make sure that the company’s data you put on that device is protected as well. That is bringing new challenges on separating personal data from work data and about how to protect work data while also allowing you to maintain your personal data. Therefore, the security of these mobile devices is becoming a crucial factor. <br />
	<br />
	<strong><br />
	How do you compare the trend of maintaining security in Nepal and India? </strong><br />
	<br />
	<br />
	The challenges are more or less the same everywhere. Even in India, we are facing similar challenges you might be facing here. In some areas, threats may be more advanced than in other places. As NII, our core plans have been in the banking and we are well versed with the processes that take place in banks. That factor will be a beneficial one when we start our operations here. We are well aware of analysing security and performing audits, doing the measurements for different purposes and allowing that to have impact on your actual business so that the posture of your organisation with each audit becomes better. Security audits should not only try to make the process but also the overall way of working better. <br />
	<br />
	<strong><br />
	Security auditing seems to be the important need at present. How aware is the corporate sector in this region about it? </strong><br />
	<br />
	<br />
	IS (Information Security) audit is one of the most important pillars of a good organisation. The reason is that computers are mostly used ubiquitously in all operations. So, all your important records are kept on computer. IS audit analyses your system and try to understand the threats that exist to your business. Based on threats, we will assess the controls you have in place and given the current control, we will suggest you the ways to improve. All of these is documented and audited by checking the evidence. While doing this repeatedly through one or two audits, the overall security for sure becomes better for the risks one is facing as every organisation faces some risks to their respective business. It could be as simple as the theft or it could be as complex as somebody doing a financial fraud. At the end of the day, the goal of IS audit is to minimise the risk in different areas of the business so that it continues to function unimpeded. <br />
	<br />
	<br />
	<strong>How affordable is such system for small to medium sized businesses? </strong><br />
	<br />
	<br />
	It is difficult to comment on their affordability, however, an IS audit can be customised as per the needs of an organisation. For example, an organisation may say that it only wants one of its departments to be certified for a certain certification. In that case, it can cut away pieces and then take the piece that it so needs. Therefore, it is affordable to many organisations and actually getting a certification like ISO 27001 is quite feasible for medium to large businesses. Even small businesses can afford the same if they are working in a very niche area and are the market leader in that <br />
	<strong><br />
	<br />
	What are the prospects you see in Nepal when you would want to work here? </strong><br />
	<br />
	<br />
	There are a lot of prospects. For example, a number of banks here are interested in IS audits so it’s my guess that we will tackle that shortly. They are interested in data centres so we will also look into that. Both these areas are our core business so we would be very happy to have customers in these areas. If there are clients who want us to do specific kinds of engagements, we would be able to do that provided such requirements are under the purview of law. Banking, energy and industrial sectors are areas we are currently looking at right now. <br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Rajesh Deo is a Security Analyst in the Technical Assessment Team at NII Consulting, a well-established provider of information security services and products, based in Mumbai, India.',
			'sortorder' => '553',
			'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) 10 => array(
		'Article' => array(
			'id' => '652',
			'article_category_id' => '38',
			'title' => 'ISO & Management System Certification',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong><img alt="julymanagement" border="1" height="146" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/july11management.jpg" vspace="5" width="300" /><br />
	<br />
	<br />
	</strong><br />
	The primary aim of the Quality Management System certification is to ensure consistent quality product and customer satisfaction simultaneously to fulfill the statutory and regulatory requirements with respect to the products and services ISO (International Organization for Standardization) is a nongovernmental organization whose main functions are to formulate, revise, adopt and update various standards. These standards may be applicable for all the member countries of the world. Its head office is in Geneva, Switzerland and around 165 countries are its members. Nepal Bureau of Standards &amp; Metrology represents the membership of ISO from Nepal. ISO has formulated more than 24,000 standards which include basic standards, product standards, test method standards and management system standards. <br />
	 </p>
<p>
	<strong><img alt="ISO Management" border="1" height="121" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/july_management.jpg" vspace="5" width="400" /></strong></p>
<p>
	 </p>
<p>
	In the management field, ISO has formulated Quality Management System standards (ISO9000 series), Environmental Management System standards (ISO14001-2004), Food Safety Management System standards (ISO22000: 2005) etc. ISO does not do any job with respect to certification and such activities are carried out by different certification bodies. These certification bodies are accredited from accreditation bodies. One certification body may have the accreditation from one or more accreditation bodies. There is one accreditation body named NABCB in India. There are hundreds of certification bodies under the umbrella of one accreditation body and these bodies are responsible to their accreditation bodies. <br />
	<br />
	<br />
	If any weaknesses are found on the part of certification bodies while awarding management system certificates like ISO9001-2008, the respective accreditation bodies take action against those certification bodies. The licence of certification bodies can even be cancelled from accreditation bodies in case of severe failure. The ISO does not have anything to do with this. These accreditation bodies are under the umbrella of International Accreditation Forum (IAF) that conforms to the guidelines developed by the ISO. Series of Quality Management System standards i.e. ISO9000 series was formulated by the ISO for the first time in 1987 with ISO9000, ISO9001, ISO9002, ISO9003, and ISO9004 with many others in this series. In this series, the certifiable standards were ISO9001, ISO9002 and ISO9003.This series was revised first in 1994 with little amendments, second time in 2000 with the remarkable revision by merging all three certifiable standards in one i.e. ISO9001-2000. The structure and some of the requirements have been changed and added during this time. There is no provision of ISO9002 and ISO9003 after this period. The third revision was made in 2008 with some revision including the control of outsourced process. The ISO 9001-2008 minutely looks at whether consistent quality products are produced and the overall management system of the organisation are met at the highest degree during organisational operation. Those companies meeting the requirements are awarded with the ISO 9001:2008 certificate by the certification bodies. <br />
	<br />
	<br />
	The primary aim of the Quality Management System certification is to ensure consistent quality product and customer satisfaction simultaneously to fulfill the statutory and regulatory requirements with respect to the products and services. The requirements of consumers are taken as the input and the organisation adds values to the requirement through different processes that eventually produces a product that has the capacity to satisfy customers. Quality Management System Requirement i.e. ISO9001- 2008 certification is not a medal of honour. However, it gives organisations the potential to become more cost effective and efficient. Similarly, it arms organisations with a powerful competitive tool that helps ensure consistent quality products and enhancement of customer satisfaction. <br />
	<br />
	<br />
	A company with well maintained and qualitative managerial practices is expected to produce quality goods and services. The ultimate goal of the certification is to ensure consistent quality products used or consumed by consumers that lead to ultimate customer satisfaction. The company may be certified for its Quality Management System, Environmental Management System, Food Safety Management System (in case of food industry only), Information Security Management System or any other management system standards developed by the ISO. Among these standards, Quality Management System Standard i.e. ISO9001-2008 is the most popular all over the world. It is a generic standard and is applicable to all types of organizations regardless of their size, nature of product and processes. Till the end of 2011, almost 1.2 million companies have been certified with ISO9001-2008 and almost 250,000 companies with ISO14001-2004 around the globe. In the context of Nepal, approximately 600 organizations have been certified with ISO9001-2008, 30 with ISO 14001-2004, 15 with ISO 22000-2005, and a very little number with Occupational Health and Safety Management System, Social Accountability. <br />
	<br />
	<br />
	There is no organization in Nepal that maintains data on the number of ISO management system standard certified companies in the country. The validity of the certificate is three years and there is surveillance audit every 9-12 months. In our context, some companies are missing the surveillance audit and in worst cases, a few are publishing advertisements even after the expiry of the certificate. So, the above mentioned number is only an approximation. Among them, a handful of companies have not renewed their standard certificates. <br />
	<br />
	<br />
	If a company is found misusing the expired certificate, the certification body may take legal actions upon receiving complaints. There is no legal authority in the country to look after these complaints even if some certified organization or certification bodies are indulging in malpractices. Monitoring is sorely missing in Nepal. There have been cases of awarding ISO management system certificates in the bordering areas where the certificate was given to those companies that do not comply with many of the requirements. In India, the accreditation body NABCB has brought a good change in this field by taking action against certification bodies whose performance is very poor. <br />
	<br />
	<br />
	It is the need of the time to establish one accreditation board in Nepal which can look after all types of Management System Certification bodies including laboratories accreditation. Around a decade ago, Nepali companies had to rely upon consultancies from India and third countries. However, some certification bodies have established their branches in Nepal at present while some others are operating directly in the country. The benefits of having the branches set up in Nepal are numerous on the part of revenue collection for the government and easy flow of information to stakeholders. <br />
	<br />
	<br />
	In conclusion, the management system certifications have brought positive improvements in many organizations even during adverse conditions such as political instability, power shortage, labour unrest etc although there is a lot of space for improvement in the consulting, certification and regulatory parts from the government side. <br />
	<br />
	<br />
	Bhandari is the Director of Quality and Environment Management Services Pvt Ltd and ISO 9001:2008 certified auditor. He can be reached via email at bhandaripomraj@ yahoo.com <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'The primary aim of the Quality Management System certification is to ensure consistent quality product and customer satisfaction simultaneously to fulfill the statutory and regulatory requirements with respect to the products and services ISO (International Organization for Standardization) is a nongovernmental organization whose main functions are to formulate, revise, adopt and update various standards. These standards may be applicable for all the member countries of the world. Its head office is in Geneva, Switzerland and around 165 countries are its members. Nepal Bureau of Standards & Metrology represents the membership of ISO from Nepal. ISO has formulated more than 24,000 standards which include basic standards, product standards, test method standards and management system standards.',
			'sortorder' => '552',
			'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) 11 => array(
		'Article' => array(
			'id' => '651',
			'article_category_id' => '39',
			'title' => 'Arun Valley HDC : For Rural Electrification',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="corporate focus" border="1" height="285" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/julycorporatefocus.jpg" vspace="5" width="400" /><br />
	<br />
	<strong>“Piluwa Khola Small Hydropower Project is an exemplary hydropower project developed by the private sector.” </strong><br />
	<br />
	<img alt="ramesh neupane" border="1" height="230" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/corporateimages.jpg" vspace="5" width="200" /><br />
	<br />
	<strong>RAMESH NEUPANE <br />
	Managing Director, AVHDC </strong><br />
	<br />
	<br />
	<br />
	“Domestic capital and technology are sufficient to rescue the country from the present energy crisis,” Ramesh Neupane, Managing Director of Arun Valley Hydropower Development Company (AVHDC) asserts. The rationale for this claim is: his company has built a 3-MW Piluwa Khola Small Hydropower Project in Sankhuwasabha district within 36 months. Out of the total 75, there are 40 districts in Nepal suitable and feasible for electricity generation. If a 5-MW plant is established in each of these districts, about 200-MW of energy will be added to the national grid within three years. When private sector adds 200 MW of power every three years, it is very possible that the same force can liberate Nepal from the energy crisis within a short period of time. <br />
	<br />
	According to Neupane, such a target can be achieved only if the government motivates the private sector. He underscored six points on making hydropower a centre of attraction for investment. First, the government should extend the license period from existing 35 years to at least 50 years for hydropower projects over 5 MW while the projects below it should be allowed to own the project for a lifetime. Second, Nepal Electricity Authority (NEA) must amend and increase electricity purchase rate in line with the inflation rate. “Price of electricity should be determined on the basis of demand and supply. NEA should increase the electricity tariff to the customers and with this effect, should also provide reasonable price to hydropower project developers,” he said. Third, the government should exempt VAT to hydropower projects. Investment in hydropower projects should be declared as tax free business till the country does not have sufficient power. This will help to attract investment into this sector. Fourth, Hydropower Finance and Development company of the government should be activated and provide long term loans on subsidised rates to the projects. Also, the capital market has to be liberal to raise funds from potential Nepali investors by issuing shares and debentures. Foreign investors should be attracted to invest in hydropower projects and allowed to trade shares in Nepal’s stock market. Fifth, the government should provide security to all projects. <br />
	<br />
	The cost of the security staffs has to be borne by the government and some field allowances are to be paid by the developers. Lastly, the government should build high voltage transmission lines from North to South to transmit energy generated in the Northern region to the Southern market of Nepal. Private sector investment in BT and/ or BOT model has to be allowed and this work should get higher priority. Additionally, Nepali energy system has to be connected with the Indian system so that energy can be imported when there is shortage and supplied when there is a surplus. Therefore, the construction of Nepal-India Cross Border Transmission Line is the urgent demand of the nation. <br />
	<br />
	In putting forward these constructive suggestions, Neupane speaks of his company’s experience as the pioneer company to introduce the concept of developing hydropower projects from the private investment in Nepal. In 1997, when the entire country was in the grip of Maoist insurgency, a group of people dared to establish Arun Valley Hydropower Development Company believing that it is possible for the private sector to build capital intensive projects such as hydropower provided there is a favourable environment, laws and policies for investment. The objective behind the establishment of Arun Valley was to construct, develop and operate small hydropower projects utilising domestic resources, technology and capital. <br />
	<br />
	When they planned to embark on their first project - Piluwa Khola Small Hydropower Project - they not only had to face difficulty to get the government’s support but also to fetch finance for it. When the AVHDC team approached the then Minister for Water Resources Sailaja Acharya with the concept, she expressed her surprise over the idea of a private sector company developing hydropower projects. But, impressed with their innovative concept, she pleaded help in every step of their project development. Their follow-ups in the Ministry of Water Resources bore fruits when NEA started to sign Power Purchase Agreement (PPA) with the private power developers. <br />
	<br />
	The team got a survey license from the Department of Electricity Development (DoED) of NEA to conduct feasibility study of Piluwa Khola Small Hydropower Project in Sankhuwasabha district. After completion of the survey, they applied for PPA. Minister Acharya helped them in getting a rate of Rs 3.0 for the wet season and Rs 4.25 for the dry season with an escalation of 6 percent for a period of five years. The escalation was supposed to be revised after five years but has not taken place till date, said Neupane. At that time, another setback was to find loan capital for the project. The project was planned with 30 per cent equity of the company and arranging 70 per cent loan from banks and financial institutions (BFIs). “As hydropower projects were the new investment area for the Nepali commercial banks, they were not ready to provide us loan in the initial phase,” said Neupane. Most of the BFIs doubted whether a private company can actually build and complete a hydropower project and will be able to pay back the loan amount. Finally, Manoj Goyal, the then CEO of the Bank of Kathmandu (BoK) took the risk and the first project of the company was financed and completed within the targeted time frame of 36 months. The project construction work was started in February 2001 and was completed in June 2003 while commercial operation started from August 2003. Arun Valley now has its own land and office building at Milan Chowk of Baneshwor and is listed in Nepal Stock Exchange.<br />
	<br />
	“The share price of this company ranges between Rs 300 and Rs 400 and the company claims that the market price of an Arun Valley Hydropower Company share will not be less than Rs 1000 upon the completion of Kabeli B1 Hydropower Project. “Piluwa Khola Small Hydropower Project is an exemplary hydropower project developed by the private sector,” argues Neupane. The company has been regularly distributing dividends to the shareholders of the company for the last seven years. “Investors have already got the return of their initial investment on the project. What they are getting now is their bonus,” shares Neupane. The second project of AVHDC is Kabeli-B1 Hydroelectric Project on Kabeli River flowing through the border of Taplejung and Panchthar districts. The project has completed the detailed feasibility study. The run-of-river project with an installed capacity of 25 MW, will sign PPA with the NEA within mid July. “The total project cost is estimated to be Rs 3,500 million. Of this total investment, 70 percent (Rs 2,450 million) will be raised from bank loan and the remaining Rs 1,050 million from the equity of share holders,” said Neupane. The company will issue rights shares to its existing shareholders to finance this project. <br />
	<br />
	A new company named Arun Kabeli Power Limited has been established as Arun Valley’s sister company to look after this project. “We have acquired 50 ropanis of land for the project and will be floating 39 per cent of the project company’s shares to the strategic partners in the beginning of next fiscal year,” said Neupane. Arun Valley Hydropower Development Company Limited will hold 51 per cent share of the project while the local people will have the opportunity to invest up to 10 per cent of the equity investment in this project. <br />
	<br />
	Lower Pheme Khola Small Hydropower Project is the second under construction project of the company located in the Mechi corridor. The project with an estimated cost of Rs 436 million has also reached the stage of PPA signing. “We will begin construction work immediately after signing the PPA,” said Neupane. <br />
	<br />
	The third project under development, Upper Piluwa Khola Small Hydropower Project, is being developed by Upper Piluwa Khola Hydropower Company Limited. AVHDC has the majority shares of this company. The project will be developed by setting-up a diversion weir from five kilometre up-stream of existing Piluwa Khola Small Hydropower Project. The project with an installed capacity of 9.6 MW has also reached the stage of PPA signing. Talking about the uniqueness of his company, Neupane shares that his company has more than 22,000 big and small shareholders. The company is in favour of mobilizing large number of people as investors in hydropower projects. The size of investment is as low as Rs 100,000. The company strives to keep the project construction costs low, complete the projects on time and distribute dividends to shareholders. Arun Valley is committed to utilise domestic capital, resources and technology to the optimum level and give relief to the country from prolonged hours of load-shedding even during the monsoon. “We have bid goodbye to load shedding in Gulmi and Sankhuwasabha districts. It is our vision now to lift the entire country from the existing energy crisis,” shares Neupane.<br />
	<br />
	It is his understanding that entrepreneurship, dedication and hardworking makes any project a success. “The technology for generating power from the running mountain water is well proven. We simply follow the art of technology,” he said. Neupane supports the idea of Foreign Direct Investment (FDI) to cash Nepal’s optimum potential in hydropower sector. He believes that the present political instability is the main impediment in attracting FDI in Nepal. “The first thing foreign investors consider is the risk involved in their investment. To minimise the risk, the government should sign a Power Development Agreement (PDA) with all the big and small project developers as well as local and foreign investors,” said Neupane. According to him, FDI will increase if the government requests foreign investors to invest in Nepal by agreeing to guarantee the security of their investments. The company also plans to attract new investors to invest in its new power projects namely Kable B-1 (25 MW), Upper Piluwa Khola (9.6 MW) and Lower Pheme Khola (3.5MW). <br />
	<br />
	<br />
	<strong>Swot Analysis <br />
	<br />
	<br />
	STRENGTHS </strong><br />
	<br />
	<br />
	• Motivated staffs <br />
	<br />
	• Stability of the company <br />
	<br />
	• Loan free company <br />
	<br />
	• Listed in the Nepal Stock exchange <br />
	<br />
	<br />
	<strong><br />
	WEAKNESSES </strong><br />
	<br />
	<br />
	• Employee turnover <br />
	<br />
	• Difference of thought between developers <br />
	<br />
	<br />
	<strong>OPPORTUNITIES <br />
	</strong><br />
	<br />
	• Developing partnership with local government <br />
	<br />
	• Developing projects with foreign investors <br />
	<br />
	<br />
	<strong>THREATS </strong><br />
	<br />
	• Unhealthy competition <br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-09-17',
			'keywords' => '',
			'description' => '“Domestic capital and technology are sufficient to rescue the country from the present energy crisis,” Ramesh Neupane, Managing Director of Arun Valley Hydropower Development Company (AVHDC) asserts. The rationale for this claim is: his company has built a 3-MW Piluwa Khola Small Hydropower Project in Sankhuwasabha district within 36 months. Out of the total 75, there are 40 districts in Nepal suitable and feasible for electricity generation. If a 5-MW plant is established in each of these districts, about 200-MW of energy will be added to the national grid within three years. When private sector adds 200 MW of power every three years, it is very possible that the same force can liberate Nepal from the energy crisis within a short period of time.',
			'sortorder' => '551',
			'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) 12 => array(
		'Article' => array(
			'id' => '650',
			'article_category_id' => '40',
			'title' => 'Open Skies Of Nepal',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Pinaki Roy <br />
	<br />
	</strong><br />
	<img alt="coverstory july" border="1" height="217" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/coverstory(1).jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	The flow of international passengers in the first quarter of 2012 has been impressive enough to raise optimism among the concerned stakeholders. The statistics between January and March 2012 is an indication that international air service and passenger movement to and from Nepal is set to register a significant increase this year compared to 2011. A total of 717,182 international passengers (see table) availed air services via Tribhuvan International Airport (TIA) – the only international airport of Nepal – in the first three months of 2012, says Raj Bahadur Maharjan, Director at TIA’s Flight Approval Department. <br />
	<br />
	<br />
	There has been an increase of 84,459 passengers when compared to the first quarter of 2011, thereby registering a growth of 13.35 per cent over the same period of the previous year. Monetarily speaking, the total annual international flight service business in Nepal is worth an estiamted Rs 80 billion. <br />
	<br />
	<br />
	Ratish Chandra Lal Suman, General Manager at TIA, says, “The number of passengers has increased in the first quarter of this year also because of new airlines coming into operation and providing added air services.” He attributes the increment both to the increase in inbound tourists and the outbound migrant workers to different countries. Even though GMG Airlines towards the end of 2011 and Kingfisher Airlines in February 2012 ceased to operate in Nepal, their absence was promptly compensated by Indigo (October 2011) and RAK Airways (February 2012). <br />
	<br />
	<br />
	The number of flights that served these passengers was 5,693 (up by 9.69 per cent from 5,190 flights during the same period last year). While 2,846 flights made outbound journeys, the number of flights that landed at the TIA stood at 2,847. A total of 368,934 passengers flew out of Nepal while another 348,248 landed in the country from January to March this year, a growth of 11.48 per cent and 15.40 per cent respectively when compared to the same period of 2011. In the first quarter of the previous year, 330,954 passengers took outbound flights while another 301,769 passengers entered Nepal via inbound flights making a total of 632,723 passengers who availed international air services from January to March 2011. <br />
	<br />
	<br />
	This growth is certainly encouraging coming at a time when the International Air Transport Association (IATA) left this year’s global airline profit forecast unchanged at $3 billion, or 0.5 per cent of industry revenues. At a summit of airline chiefs being held this year in Beijing, this stable outlook masks a widening gap between regions with “only North and South America set to improve and the rest of the world seeing reduced profitability.” <br />
	<br />
	<br />
	<strong>The Year Gone By <br />
	</strong><br />
	<br />
	International air passengers flying via the Nepali sky crossed 2.7 million for the first time in 2011. These passengers travelled via Nepal with 28 international airlines operating in Nepal last year, according to Maharjan. He said that additional airlines such as IndiGo, added frequency of flights and passenger occupancy increased the number of air passengers using the Nepali route. The year 2011 saw 2.7 million international passengers flying out and landing in the country on board 22,791 flights. A total of 28 airlines flew 2,700,027 passengers (see table) for the year, says Maharjan. This was an increase of 10.81 per cent in comparison to 2010 when 2,436,558 passengers availed international air services in Nepal. <br />
	<br />
	<br />
	While 1,407,512 passengers flew out of the country, the passengers entering the country numbered 1,292,515. A total of 11,393 flights departed while 11,398 flights entered Nepal during the period making a total of 22,791 flights for the year. The only new airline that started operations in 2011 was Indigo. Qatar Airways carried the most number of passengers – 277,796 on 2,374 flights while Jet Airways was second with 272,560 passengers on 2,191 flights. Nepal Airlines Corporation was third with 202,041 passengers on 1,619 flights. <br />
	<br />
	<strong><br />
	Migrant Worker: The Main Market </strong><br />
	<br />
	<br />
	With more Nepalis departing for jobs abroad and increase in tourist movement, international airlines operating in Nepal have witnessed this rise in passenger movement in recent times. The airline companies claim that they are equally focusing on all the segments, which include business travellers, tourist, VFR (visiting-friends and relatives) and workers. However, it’s no secret that migrant workers comprise around 80 percent of the total passengers availing international air services in Nepal. Most of the international airlines flying to and from Nepal are more focused on manpower markets rather than the tourism markets. Of the total international flights, the airliners carry only 20 per cent tourists, observe industry analysts. <br />
	<br />
	<br />
	<strong>Contribution to Tourism </strong><br />
	<br />
	<br />
	International carriers from India accounted for the largest share of inbound tourism in Nepal in the previous year. According to TIA, Indian carriers flew around 48 per cent of all tourists visiting Nepal in 2011 – dubbed as Nepal Tourism Year (NTY). Indian travellers alone grew by 39 percent to 145,338 in 2011, a 26.67 percent share in total tourist arrivals to Nepal. As per TIA statistics, five Indian airlines—Spice Jet, Jet Airways, Air India, Jet Lite and Kingfisher—figured among the top 10 carriers bringing tourists to Nepal. The total tourist arrivals via air numbered 544,985 in 2011 that entered Nepal on board 28 international airlines. <br />
	<br />
	<br />
	Indian budget airline Spice Jet – that started flying to Nepal in October 2010 – was the largest carrier of tourists into Nepal in 2011, accounting for 15.28 percent of the arrivals. Jet Airways and Air India were the second and third largest tourist carriers respectively accounting for 12 percent and 8 percent tourist arrivals. Two legacy carriers—Thai Airways and Qatar Airways—fell in the inbound tourism rankings in 2011. While Thai’s market share shrunk to 8 percent from 11 percent in the previous year, the share of Qatar Airways slipped to 7 percent. Etihad Airways and Gulf Air, two more carriers from the Middle East, lost their slots in the top 10 list in 2011. <br />
	<br />
	<br />
	The healthy growth of Indian tourists to Nepal attracted yet another Indian private airliner Indigo Airlines that started New Delhi-Kathmandu flights in October last year making it the sixth Indian private airliner flying between Nepal and India. Currently, Air India, Jet Airways, Jet Lite, Spice Jet and Indigo fly around 130 flights a week between Kathmandu and various Indian destinations while Kingfisher Airlines has stopped flying to Nepal for the last few months. Needless to say, the increase in the number of Indian airliners flying to Kathmandu has encouraged the aviation sector in Nepal immensely and boosted the country’s tourism prospects. A total of 207,961 tourists entered Nepal via air in the first four months of 2012, a growth of 23.1 per cent over the same period last year. A total of 168,958 tourists had entered Nepal from January to April in 2011. <br />
	<br />
	<br />
	<strong>Direct Flights <br />
	</strong><br />
	<br />
	Broadly, any business or industry can be categorised either as monopoly or market-oriented. Due to the inherent nature of international air transport industry, every country enjoys certain exclusive rights, which indirectly helps them monopolise some air routes. This right, if exercised, could be of tremendous benefit to a country like Nepal. “Direct flights between Nepal and other countries can play a key role in bringing increased number of tourists into our country,” an industry insider opines. <br />
	<br />
	<br />
	For instance, none of the 27 airlines flying into Nepal have the right to operate direct long distance flights between Nepal and lucrative destinations like Europe, Japan and Australia. They can operate only connecting flights whereas Nepal gets the sole privilege of operating direct international flights from the country. As foreign travellers have no choice of direct air connectivity, air travel costs become higher while coming to Nepal. Mihin Lanka, a Sri Lanka-based airline has expressed its interest to operate direct flights between Colombo and Kathmandu. This was conveyed to Prime Minister Baburam Bhattarai by Lankan President Mahinda Rajapaksa on the sidelines of the recently concluded environmental summit in Rio de Janeiro, Brazil. Air Service Agreement (ASA) between Nepal and Sri Lanka allows Sri Lanka-based airlines to operate up to 14 flights a week in the Colombo-Kathmandu-Colombo sector. <br />
	<br />
	<br />
	<strong>State of the National Carrier </strong><br />
	<br />
	<br />
	The status of the national carrier – Nepal Airlines Corporation (NAC) – in terms of international flight operations is disappointing to say the least. Around 95 percent of the international aviation market in Nepal is in the hands of foreign air operators. “Our market share is worth less than Rs 4 billion out of the international flight service business of Rs 80 billion annually,” says NAC Spokesperson Saroj Kasaju. The market share of NAC shrank to an all-time low in 2011 in terms of tourist carriage. The national flag carrier held the 10th position with a mere 3.05 percent while it had a market share of 4.87 percent in 2010. The eroding market share of NAC, according to travel trade entrepreneurs, is due to its inability to expand its fleet while the fact remains that the prerequisite for business expansion in airline industry is acquisition of aircraft, especially for operation in the lucrative international sector. In 2001, NAC was a leading carrier accounting for 28 percent of inbound tourists. <br />
	<br />
	<br />
	With more international airlines entering the Nepali skies and NAC’s track record of flight delays, travel agencies say the national flag carrier has become the last choice among visitors. Currently, NAC operates its international flights with two ageing Boeing 757s, either one of which is usually offline due to technical glitches and periodic C-checks. The carrier now flies to only five international sectors – Dubai, Doha, Bangkok, Kuala Lumpur and Hong Kong – down from 21 destinations in 12 countries with four Boeings till 1993. The airline now plans to start flights to Damam in Saudi Arabia. It also plans to start flying to Kuala Lumpur seven-days-aweek besides launching direct flights to Doha, Qatar. <br />
	<br />
	<br />
	The corporation currently spends Rs 1.39 billion on repairs alone for the two planes – Boeing 757-9N ACA Karnali and ACB Gandaki – which it has in its ‘fleet’ right now, says Kasaju. “Out of the estimated income of Rs 4.52 billion from international flights in the current fiscal year, 23 per cent of the total amount has gone into the repairs of the two Boeings,” he adds. The cost of repairs has gone up considerably in the last five years due to the fast ageing of the two Boeings. This expense is several times more than what the private carriers spend on repairs and maintenance which is six to 10 per cent of their earnings from flights. <br />
	<br />
	<br />
	A strong and competitive national flag carrier can serve as a key vehicle of the country’s economic and tourism development. Kasaju says, “NAC has become a factory without machines due to lack of aircraft but hasn’t gone in loss yet.” He cautions though that the corporation can land in major financial trouble if aircraft is still not added to its fleet. <br />
	<br />
	<br />
	However, all is not lost as Kasaju reiterates that the corporation is still making profit thanks mainly to its ground handling business. The corporation provides such service to 23 foreign airlines that fly to Nepal. From a domestic perspective, the corporation is expected to get five units of 19-seater aircraft and three units of 56-seater aircraft from China on grants and concessional loan. The airline management is scared of an imminent demise of the company as its current basis of survival – ground handling business – is in jeopardy due to a move by the Civil Aviation Authority of Nepal (CAAN) to possibly involve the private sector and allow competition. <br />
	<br />
	<strong><br />
	Ground Handling Services at TIA </strong><br />
	<br />
	<br />
	CAAN is currently holding discussions with other government agencies and stakeholders to allow the private sector to operate ground handling services at the TIA. It informed that it may soon allow private firms to operate ground handling services during the night time. Currently, NAC that provides ground handling services to almost all international airlines currently earns Rs 2 billion a year of which 10 percent is paid to CAAN as royalty. CAAN says that many international airlines and customers have complained about NAC’s ground support service. The complaints are mainly two: thefts and tampering with passengers’ luggage and higher ground handling charges of NAC in comparison with other international airports in the region. It is hopeful that the introduction of a private firm will enhance quality and manage congestion at TIA. “The Civil Aviation Authority Act 1996 and National Civil Aviation Policy 2063 state that the ground handling service should be competitive. Besides, the agreement with the corporation also does not restrict CAAN from appointing a private firm to manage ground handling services,” says Suman. He adds, “Due to NAC’s monopoly, the ground handling charges in our country are the most expensive in this region.” <br />
	<br />
	<br />
	The addition of one more ground handling service provider is expected to bring in competition and end the monopoly thereby resulting in quality service at lower service charge, adds Suman. TIA currently has the capacity to serve 8.2 million passengers a year and can serve up to 1,350 international passengers on an hourly basis. “We have not been able to serve to our total potential due to organisational inefficiencies. The number of flights out of TIA is less than half the capacity that we can accommodate,” Suman says. Meanwhile, NAC officials deny the charges and claim that the incidents of baggage theft and breakdown are minimized to internationally acceptable level. They also allege that some of these complaints are actually due to the fault of CAAN and other government agencies involved in the business such as the immigration department. According to them, some problems are due to lack of adequate infrastructure such as insufficient apron space for parking the craft which are forced to wait in the taxiway for long periods. Besides, inadequate number of boarding gates cause delays in boarding and confuse passengers on the correct conveyer belts to deliver the luggage are frequently out of order while the luggage weighing machines are not repaired on time. Insufficient number of toilets and chairs in the passenger waiting area add to passenger woes further. <br />
	<br />
	<br />
	The NAC management says that it’s not only the ground handling services that are expensive in Kathmandu. It gives examples of the fuel price and the charges that CAAN levies on account of aircraft landing, parking and navigation. The charges for CUTE used for passenger check-in too are high in Nepal than elsewhere, argue NAC executives. They point that the ground handling services in many other countries such as Thailand, UAE, Qatar, Malaysia and Hong Kong are provided by their national flag carriers either on their own or through subsidiaries. In Thailand, even the flight catering service is provided by the party that is recommended by Thai Airways, they say. <br />
	<br />
	<strong><br />
	Trans-Himalaya 2 Airspace <br />
	</strong><br />
	<br />
	Considering the increased air traffic at the TIA, CAAN is planning to operate the international airport 24 hours a day. This is expected to help in managing the increasing air traffic. Besides, it is also seeking an alternative location nearby Kathmandu for shifting the domestic airport from TIA to address the congestion. Likewise, it is also going to extend the domestic terminal building and make a separate car parking area for arriving passengers. <br />
	<br />
	<br />
	Nepal plans to ask India for the development of Trans-Himalaya 2 airspace (Hong Kong-Kunming- Guwahati-Kathmandu) connecting Southeast Asia, the Middle East and Europe in view of the increasing air traffic demand in Nepal. The route is one of the most lucrative routes for Nepal and if opened, it will be the shortest way from China and the Far East to the Middle East and Europe. The air distance from Kathmandu to Hong Kong will also be reduced. Implementation of this airspace will allow international airlines to fly over Nepali airspace, which means savings in fuel and distance for carriers flying this route and revenue for Nepal. “The airspace was discussed during Prime Minister Baburam Bhattarai’s visit to Delhi,” says Suresh Acharya, Joint Secretary at the Ministry of Culture, Tourism and Civil Aviation (MoTCA). According to him, India is positive about opening the proposed route. He adds that separate discussions need to be held with the Chinese government with regard to permission from the Chinese side for the opening of Trans-Himalaya 2 airspace. The opening of this proposed air route will have hundreds of international airlines use Nepali airspace and help the country to develop as a hub. CAAN officials add that the proposed route would be the shortest and could establish Nepal as an international transit point and result in enhanced air revenue for the country. The second international airport that the government has planned to construct in Nijgadh of Bara would be the greatest beneficiary in the event this air route comes into operation. Similarly, for aircraft entering Nepal’s air space, CAAN proposes Biratnagar (in the eastern region), Bhairahawa (in the western region) and Nepalgunj (in the mid-western region) as the three crossborder airspaces. Currently, Nepal has three incoming air routes—Simara, Kakkarbhitta from Paro in Bhutan and the Nonim air route from China. The Kathmandu-Mahendranagar-Delhi (L626) is the outgoing air route for international flights. Nepal is seeking new airspaces to ease traffic congestion, enhance information transmission, traffic regulations, emergency recovery of aircraft during accidents and automatic message switching system in its aviation sector. <br />
	<br />
	<br />
	The proposed route is more direct, safer, economical and efficient for flights between Europe, the Middle East and East Asia. These routes will reduce the congestion of westbound traffic flows across the Bay of Bengal. Experts claim that access to this international air space would give Nepal a huge opportunity to develop as a hub like India, the Maldives, Pakistan and Sri Lanka in South Asia. Maximum coverage of Nepal’s air space on long distance international flights via this proposed route could bring great benefits to the country if brought into operation <br />
	<br />
	<strong><br />
	The Way Forward </strong><br />
	<br />
	<br />
	As per the estimates of the International Civil Aviation Organisation (ICAO), an investment of US$ 100 in the air transport industry produces benefits worth US$ 325 for the economy, and 100 additional jobs in the air transport sector results in 610 new jobs across the wider economy. It further suggests that the air transport component of civil aviation accounts for more than 4.5 percent of the global GDP. As for the numbers, three carriers – AirAsia X, Malaysia Airlines and BB Airways – start operations in 2012. AirAsia X has already started operations while Malaysia Airlines and BB Airways are planning to operate international flights from September this year. It’s courtesy the competition among airlines on Kathmandu-Kuala Lumpur route as these three carriers unveiled plans to operate on the sector. The growing movement of Nepali migrant workers to and from Malaysia is one of the reasons luring airlines to fly on this sector. Statistics released by the Department of Foreign Employment shows that an average of 350 Nepali workers left for the Malaysian capital on a daily basis in the last fiscal year. While Malaysia Airlines is the national carrier of Malaysia, AirAsia X is a Malaysia-based budget carrier. ASA between Nepal and Malaysia allows Malaysian carriers to operate up to 21 flights a week. On the other hand, BB Airways is an upcoming local carrier promoted by TBI Group of Non Resident Nepalis (NRNs) in Japan which has already unveiled plans to operate scheduled flights on seven international routes including Kuala Lumpur. <br />
	<br />
	<br />
	There is an unlimited potentiality of the development of tourism and civil aviation sectors in the country. A well-equipped fullfledged international airport – where long-haul flights from Europe and America could directly land and take off – is needed for the development of the aviation and tourism sectors. In this context, a proposed fullfledged airport at Nijgadh can be an international hub for air transit and contribute substantially to the overall economy of Nepal. Nepal Investment Board (NIB) has already taken the initiative on projects related to the upgradation of TIA, and construction of a new airport in Nijgadh. It is estimated that the TIA upgrade will cost Rs 52.80 billion while the construction of the new airport in Nijgadh will cost Rs 45 billion. <br />
	<br />
	<br />
	<br />
	<br />
	<br />
	<strong>‘Gulf Air Provides Excellent Connectivity to a Large Number of Nepali Workers’ <br />
	<br />
	<br />
	<br />
	<img alt="" src="http://www.abhiyan.com.np/images/uploaded/renji-kurian-th_1343383001.jpg" /><br />
	<br />
	RENJI KURIAN THOMAS </strong> <strong><br />
	Country Manager <br />
	Gulf Air <br />
	<br />
	</strong> <br />
	<br />
	<strong>Can you share the rate of increase in passengers flying to and from Nepal over the years? <br />
	</strong> <br />
	There has been a steady growth of passengers over the years. As one of the major international airlines operating in Kathmandu, we have seen nearly a 20 per cent increase in the number of passengers in the first quarter of the year 2012. The latest report of Tribhuvan International Airport (TIA) also has our airlines figuring among the top four international airlines that have seen the strongest growth in passengers’ movement. Having started our operation in July 1998, we are now operating 12 flights between Bahrain and Kathmandu weekly. <br />
	<br />
	<br />
	<strong>How do you assess the quality of air service infrastructure in Nepal? <br />
	</strong> <br />
	The quality of air service is very good as the airport takes care of landings and take-offs for as many as 27 international airlines. However, there is always a scope for improvement with the increase in tourism traffic in Nepal. The airport has been working to improve its facilities further as such. <br />
	<br />
	<br />
	<strong>How has been the demand on the number of flights over the years? How are you managing the supply to meet the demand? <br />
	</strong> <br />
	The demand on this route is increasing steadily. By increasing our frequencies as well as operating large aircrafts periodically, we manage to accommodate more passengers. Gulf Air provides excellent connectivity to a large number of Nepali workers in the gulf region, particularly Saudi Arabia. We operate larger aircrafts as per the situation, especially when the demand is high. <br />
	<br />
	<br />
	<strong>What are your unique selling propositions? How aggressively are you marketing them? <br />
	</strong> <br />
	We have got the biggest network in the gulf region and several USPs to our credit. One of them is our schedule with excellent connectivity, for example, our split schedule of flights between Bahrain and Kathmandu offers very good travel options as it allows travelers to choose their own flight timings. In addition, Gulf Air’s seamless connectivity to Europe and the Far East via the Bahrain hub is an ideal choice for European customers travelling to Nepal or the Far East. Moreover, we are currently operating one of the youngest fleet with an average age of 5.2 years. This A320 fleet which operates between Bahrain and Kathmandu, offers ergonomically designed seats for travelers with maximum comfort, full flatbed seats on Falcon Gold class and the latest in-flight entertainment. <br />
	<br />
	Internationally, we are the first airline in the world to offer ‘Sky Hub’ that offers hi-speed broadband internet, mobile phone connectivity, live TV telecast, popular entertainment programs, sports channels and an array of movies, music and games. In addition to that, Gulf Air’s unique Sky Nanny and Sky Chef Services have received positive feedback from the customers. These services have helped us win the best ‘family friendly airline’ from US-based publications and the ‘best cabin crew’ award ranking from an IATA survey. <br />
	<br />
	<br />
	<strong>Airlines flying to Nepal are said to have very few business class seats. Is it true that airlines do not see prospects for business class market here? <br />
	</strong> <br />
	The aircrafts that we fly to Kathmandu are the same as the ones that fly on our other routes. We use a combination of narrow and wide body aircraft for flights to Kathmandu, depending on the traffic. We agree that the potentiality of business class market is not high in Nepal when compared to other regions. However, we offer 16 Falcon Gold Business class seats on our A320 fleet which has a configuration of 136 seats in total. The gold business class has full flat seats and several modern features for those who prefer stylish and luxurious travel. <br />
	<br />
	<br />
	<strong> What are your expansion plans? <br />
	</strong> <br />
	We do continuously look at the number of the passengers and market demands and decide accordingly. As said earlier, we have increased our frequencies and are also periodically operating larger aircraft to meet the seasonal and expanding market. <br />
	<br />
	<br />
	<strong>Most of the flights made to Nepal are targeting migrant workers. How sustainable is this policy? <br />
	</strong> <br />
	As mentioned in the TIA report, increased labor traffic accounts for around 80 percent of seat demand in all international airlines. All international carriers connecting to Nepal saw a robust increase due to this reason. We cater both to migrant workers and tourists. However, the majority of our traffic to Kathmandu is the migrant workforce working in the gulf countries. We foresee this trend to continue for some time to come. <br />
	<br />
	<br />
	<strong>What are your operational difficulties and facilities in Nepal? <br />
	</strong> <br />
	There are no operational difficulties except the weather of course. As you know, we are sometimes forced to divert our flights to nearby Indian airports due to unfavorable weather conditions such as dense, fog etc especially during winter. However, with our split schedule flights, we have better timings for landing in Kathmandu. <br />
	<br />
	<br />
	<strong>How are you managing your ground handling staff and crew members? <br />
	</strong> <br />
	We have Nepali speaking cabin crew in our team, who are deployed on the Kathmandu route most of the time so that our Nepali customers could feel at home. Almost all our staffs at the airport and city office are Nepalis. <br />
	<br />
	<br />
	<strong>How do you see the prospects of Nepal’s tourism sector? How is your airline contributing to it? <br />
	</strong> <br />
	Tourism is one of the main industries in Nepal. The Nepal Tourism Year 2011 was quite successful. Through International air passenger movement, Nepal grew 13.35 percent in the first three months of 2012 with high migrant workers and tourist traffic. Kathmandu is one of the major tourist destinations with thousands of foreigners visiting the country for a variety of reasons. <br />
	<br />
	The tourism sector is bound to expand as more and more people opt for unique and affordable destinations such as Nepal. We are able to connect more passengers than others to travel to Kathmandu via our Bahrain hub. The tourism campaigns or promotions by Nepali tourism authorities in the gulf countries can further help an increment in the tourist traffic to Nepal. I am proud to say that Gulf Air too has a role to play in the tourism development of Nepal as we cater to a large number of European tourists who find it convenient to fly with us. <br />
	<br />
	<br />
	<br />
	<strong>‘An International Airport at Nijgadh can help Establish Nepal as a Transit Hub’ <br />
	<br />
	<br />
	<br />
	<img alt="" src="http://www.abhiyan.com.np/images/uploaded/tri-ratna-manan_1343383130.jpg" /><br />
	<br />
	TRI RATNA MANANDHAR </strong> <strong><br />
	Director General <br />
	Civil Aviation Authority of Nepal (CAAN) <br />
	</strong> <br />
	<br />
	<strong><br />
	What is the current scenario of International flights operating in Nepal? </strong><br />
	<br />
	Earlier, we had altogether 28 operators conducting international flights. Among them, three operators namely GMG Airlines, Kingfisher Airlines and Bahrain Air postponed their flights. Simultaneously, three other operators namely BB Airways – a Nepali airliner – along with two airliners from Malaysia, Air Asia X and Malaysian national carrier Malaysia Airlines were included. Air Asia X is operating from July 3 while BB Airlines is to commence from September this year. That is to say, some airlines are withdrawing their flights while some others are commencing their operations soon. However, the numbers of operators are back to 28 as it was before. There are 33 other airlines waiting in the wings with their air service agreements (ASAs). <br />
	<br />
	<br />
	<strong>The infrastructure bottleneck is often the constraint to provide international standards services to the airlines flying to Kathmandu. What exactly is the situation? <br />
	</strong> <br />
	We must accept this fact. We are not being able to develop the infrastructure as per the growth of air traffic movements. That is why we are very often facing air traffic congestion at TIA. To address such problems, we are conducting various measures. First of all, a TIA Capacity Enhancement Project is going on with support from an ADB loan of US$ 70 million. CAAN itself is investing another US$ 30 million in the project. This US$ 100 million project will address the extension, expansion, and development of TIA which includes the civil infrastructures such as runway and taxiway extension, construction of additional parking bay etc. The development of equipment is another component that is also in our priority. These components are ATC automation and communication and navigation equipment. These tasks are part of the capacity enhancement project. We are also planning to separate domestic operators and shift them somewhere close to Kathmandu. Dhulikhel seems to be a possible location and a detailed feasibility study is being conducted for that purpose. We are looking at this alternative so that we can use the present TIA only for International operation. <br />
	<br />
	<br />
	<strong>How is CAAN addressing air traffic issues like landing and take-off, flow of flights and routes etc? <br />
	</strong> <br />
	We have some problems in the international air route and we are inviting Indian authorities to Nepal to hold discussions on this very soon. <br />
	<br />
	<br />
	<strong>How improved has the passenger handling capacity of TIA become in the recent years? <br />
	</strong> <br />
	We are continuously trying to improve our services. But I can’t say that the improvements are significant because of the limited facilities. Even the space is the same as we have been using before. Upon the completion of the ADB project, we would be able to enhance the passenger handling capacity and provide other facilities accordingly. <br />
	<br />
	<br />
	<strong>What happened to the plan of making TIA operational for 24-hours-a-day? <br />
	</strong> <br />
	We are continuously exercising to operate that way. But there are certain things to be considered like manpower planning, reliability of the radar etc which are essential in making TIA operate for 24-hours-a-day. Besides CAAN, the immigration authorities and the security establishments also need to be prepared for it. <br />
	<br />
	<br />
	<strong>What is the overall air service infrastructure situation of Nepal? <br />
	</strong> <br />
	In terms of airports and airport facilities, we (the Ministry of Culture, Tourism and Civil Aviation and CAAN) are aggressively involved in improving and increasing airport infrastructure. The project for constructing Gautam Buddha Regional International Airport at Bhairahawa is in the pipeline. The revised estimated cost for the project is US$ 77 million. Another project for a regional international airport in Pokhara is also proceeding for which China Exim bank has shown an interest to invest in. <br />
	<br />
	<br />
	<strong>How many of our airports are capable of handling international flights in terms of runways and other infrastructures in Nepal? <br />
	</strong> <br />
	Airports in Bhairahawa, Nepalgunj and Pokhara are capable for conducting cross border flights with India. They can operate in Indian cities like Lucknow, Varanasi, Delhi and Patna. As for fullfledged international operations, we only have TIA to look up to. <br />
	<br />
	<br />
	<strong>Experts say that lack of direct international flights from major tourist destinations have resulted in great loss for our tourism sector. What is CAAN doing about it? <br />
	</strong> <br />
	The entire aviation sector understands the value of direct international flights. The scenario of constructing Nijgadh International Airport has emerged due to this need. It’s been so many years that we are talking about constructing it but there is no achievement on this front so far. If the nation really wants to promote the tourism sector on a massive scale, a full-fledged international airport is a must as the present international airport (TIA) is not a full-fledged one. It has many constraints because of the terrain, runways and lack of other infrastructures. That is why it is not possible to operate long haul flights from the US and Europe. Landing a big aircraft is another impossibility given the present circumstances. If the tourists from countries in Europe and the US could travel directly to Nepal, it would have been convenient to us as well as the tourists. For instance, it takes a minimum of two stops and one has to spend more than 24 hours to travel from Europe to Kathmandu. All the pleasure and excitement is gone because the tourists feel exhausted and tired due to long flights. The travellers have to spend more hours in transit than on board the flights. <br />
	<br />
	We are unaware of the exact tourism potentiality of Nepal. The President of International Civil Aviation Organization (ICAO) visited Nepal recently. He was shocked to hear that we were able to bring only about 700,000 tourists against our target to bring in one million tourists during Nepal Tourism Year 2011. <br />
	<br />
	We will not be able to develop our tourism sector as desired if we depend entirely on TIA only. By constructing a full-fledged international airport at Nijgadh will not only enable us to operate long haul international flights but also help establish Nepal as a transit hub like Hong Kong and Bangkok. <br />
	<strong><br />
	<br />
	What do you have to say about the fifth freedom rights of international airliners operating in Nepal? </strong> <strong><br />
	</strong> <br />
	We assure such rights in the Air Service Agreement (ASA) with international operators. The recent controversy with Air Arabia on the fifth freedom rights is meaningless. As per the provision of an ASA between Nepal and UAE, it is their right to seek so. If the international operators do not get their fifth freedom rights, they cannot run their businesses. We can’t even imagine building the Nijgadh Airport leaving aside such rights. Fifth freedom rights will help develop Nepal establish itself as a transit hub. But these controversies are hardly true for some other international airlines. More than 90 per cent international airlines are enjoying fifth freedom rights, for instance, Druk air is operating a flight between Kathmandu and Bhutan via Delhi. <br />
	<br />
	<br />
	<strong>‘Dragonair is Bringing a lot of People into Nepal’ <br />
	<br />
	<br />
	<br />
	<img alt="" src="http://www.abhiyan.com.np/images/uploaded/thomas-bellamy_1343383224.jpg" /><br />
	<br />
	THOMAS BELLAMY </strong> <strong><br />
	Manager - Nepal <br />
	Hong Kong Dragon Airlines Ltd <br />
	</strong> <br />
	<br />
	<strong><br />
	Can you share the rate of increase in passengers flying to and from Nepal over the years? <br />
	<br />
	</strong> Dragon air started its operation in Nepal in 1989. The service was halted in 2001 and re-launched in 2007. We have gradually increased our frequency and now have daily flights. We have increased the aircraft size with the increase in passenger numbers. We are taking more passengers to China, Japan, Australia and the US. These are the big destinations for us. Dragonair is also bringing a lot of people into the country especially during the peak tourist season from September to April. <br />
	<br />
	<br />
	<strong>How do you assess the quality of air service infrastructure in Nepal? <br />
	</strong> <br />
	There have been some good changes at the TIA recently – for example, the new check-in desks and screens that have been installed at the international terminal. We hope for more improvements to be made in the future. It is very important to have a very strong main airport here in Kathmandu to act as a hub for inbound Nepali tourism. <br />
	<br />
	<br />
	<strong>What is the demand on the number of flights over the years? How is Dragon Air managing the supply to meet the demand? <br />
	</strong> <br />
	We have the capacity to meet the growing demands. There is enough demand to utilise the capacity and thus, we increased the frequency to a daily flight in September 2011. We are quite optimistic about Nepal and will continue to monitor such situations. From the tourism perspective, a lot depends on the stability of things here in Nepal. If Nepal can get good coverage in other countries, the travel agents and airlines will be more willing to promote Nepal and the number of passengers will increase as well. <br />
	<br />
	<br />
	<strong>How cooperative have the Nepali government institutions been in helping meet the market demands? <br />
	</strong> <br />
	I think the intentions are good. There are obviously a few constraints in Nepal, but many of these will fall off in a more stable environment. For now, we just need to continue working together to improve wherever we can and to focus on the positives. The Airlines Operating Committee which comprises airport representatives from most of the major carriers in Nepal continues to work with the relevant authorities to look for improvements wherever possible. <br />
	<br />
	<br />
	<strong>What are your unique selling points? How aggressively are you marketing them? <br />
	</strong> <br />
	One of the unique selling points of Dragonair is having Hong Kong as its hub. We have fantastic connections, and together with our sister airline Cathay Pacific, we are capable of connecting passengers to over 160 destinations worldwide. In Hong Kong, the minimum connecting time with Cathay Pacific has been reduced to 50 minutes which gives passengers more choice and convenience. There are many destinations from Hong Kong within a relatively short distance – half of the world’s population within five hours. On the long-haul side of things, we connect to New York four-times-daily. We look at the possible frequency rather than relying solely on our capacity. We want to give passengers more choice, which means provide more departure time wherever sustainable. <br />
	<br />
	Dragonair’s world-class service and quality products have long been recognised – we’ve won the Best Airline – China category for six consecutive years in the respected Skytrax passenger survey and we were also voted the “World’s Best Regional Airline” in 2010 and 2011. Dragonair’s major strength is China. We fly to 19 destinations in mainland China and operate about 400 flights a week. Adding to it, our sound safety record, well-trained and professional staff, and good on-time performance are the positive sides to focus on. <br />
	<br />
	<br />
	<strong>Airlines flying to Nepal are said to have very few business class seats. Is it true that airlines do not see prospects for business class market here? <br />
	</strong> <br />
	Asia has shown its ongoing potential and resilience in the face of the current global economic downturn. Until now, Nepal has widely been regarded as a leisure travel destination. We are optimistic that, with stability, business and industry here can grow and along with it, the demand for business travel will rise. We actually have a decent number of business class seats on our Airbus A330 aircraft, but it would of course be nice if passengers originating from Kathmandu could fill more of those seats. <br />
	<br />
	<br />
	<strong>What are your operational difficulties and privileges received in Nepal? <br />
	</strong> <br />
	The weather is always a challenge for airline operations and it is no exception here in Nepal. We have worked with the authorities and our own engineering teams to overcome the constraints we face here, so as to ensure timely operation as much as possible. This is particularly important in the context of the airport operating hours (the airport closes after midnight). The ever increasing number of tourists would definitely benefit from further improvements at the airport, and we will continue to support positive initiatives from the authorities in that direction. <br />
	<br />
	<br />
	<strong>It is said that operating in Nepal is very cheap despite having poor infrastructure. What are its advantages? <br />
	</strong> <br />
	While operational cost is one of the many factors, we look at running our business anywhere. We see Nepal more for its market potential i.e. its attractiveness as a destination and travel demand to other countries like US, Australia, Japan, Korea and of course Hong Kong and China. <br />
	<br />
	<br />
	<strong>What are your expansion plans? <br />
	</strong> <br />
	We continue to look forward to opportunities in Nepal and act accordingly in terms of available possibilities. We will increase frequency if we continue to see good growth in passenger numbers at sustainable yields. Basically, we will react to the situation, and we’re optimistic that the outlook for Nepal is bright. <br />
	<br />
	On a larger scale, Dragonair is adding six aircraft: four Airbus A320s and two Airbus A330s to the fleet this year - expanding the size of the Dragonair fleet from 32 to 38. Two additional A320s and one A330 have already entered the fleet this May. In terms of Dragonair’s network this year, we launched flights to Jeju on 01 May (three flights per week), to Chiang Mai on 01 July (four flights per week) and to Kolkata, India in winter 2012 (four flights per week). Flights were also resumed to Taichung on 14 May (twice daily), to Guilin on 01 May (daily), and Xian on 01 Apr (daily). <br />
	<br />
	<br />
	<strong>‘Thai Airways was the First Airline to Operate Jet Service to Nepal’ <br />
	<br />
	<br />
	<br />
	<img alt="" src="http://www.abhiyan.com.np/images/uploaded/chantouch-srini_1343383315.jpg" /><br />
	<br />
	CHANTOUCH SRINILTA </strong> <strong><br />
	General Manager <br />
	Nepal &amp; Bhutan <br />
	Thai Airways International Public <br />
	Company Limited <br />
	</strong> <br />
	<br />
	<br />
	<strong>You are going to complete 44 years of operation in Nepal. How has been the journey so far? <br />
	</strong> <br />
	The history of Thai Airways International in Nepal dates back to 1968 when the inhabitants of Kathmandu had their first glimpse of THAI’s 72-seater French built Caravelle SE210 aircraft which touched the unfamiliar runway of Tribhuvan International Airport (TIA). We are going to complete 44 years of our operation in Nepal this year. <br />
	<br />
	THAI was the first-ever airline to operate jet service from Kathmandu and the airline that opened up the forbidden Himalayan Kingdom as a new tourist destination to the world. It was a spectacular and memorable event in the Nepali Aviation history. <br />
	<br />
	THAI also introduced the first computerized reservation system in Kathmandu in February 1985 and provided this facility to its leading travel agents since 1990. Royal Orchid Lounge at the TIA used to be the only lounge operated by THAI in the 1990s. However, after Nepal Government adopted liberal sky policy, many other international airlines joined the race. Our monopoly market share has been diluted a little bit but we are enjoying the competition. It has given us the opportunity to prove ourselves as the first choice carrier in terms of our fleet size and service standards. <br />
	<br />
	<br />
	<strong>What is the demand status on the number of flights over the years? How are you managing the supply to meet the demand? <br />
	</strong> <br />
	Being a pioneer and well renowned carrier, THAI always had the strategy to adjust the number of flights as per market demand. In the beginning, we operated once a week flight between Bangkok and Kathmandu and soon after that, one more flight was added to cope with the high demand of passengers. THAI started daily flights with A300-600 aircraft since the end of October 1997. In the context of growing demand of air seats to/from Nepal, we added three more flights in 2008. Based on the request of different tourism related associations like NATTA, PATA, HAN and NTB, we began to run 10 flights per week. Now we have seven flights a week with a configuration of 30 business class and 279 economy class seats. <br />
	<br />
	<strong><br />
	Thailand has been one of the most popular destinations for outbound tourism for the Nepalis. What is Thai Airways’ contribution to it? <br />
	</strong> <br />
	Thai Airways has played a leading role in the development of tourism not only in Thailand but also in helping Nepal in worldwide promotion as a major tourist destination through various media like our in-flight magazine “Sawadee” and Royal Orchid Holiday Packages tours. Besides performance, punctuality, and silk class services to our valued customers, we have joined hands with the Tourism Authority of Thailand by frequently organizing different events like Trade Fairs, Educational/ Medical fairs, familiarization trips for agents and media, Thai Food festivals, Thai Puppet shows etc. We also offer attractive packages and special fares for students and leisure travelers. <br />
	<br />
	<br />
	<strong>How has Thai Airways been promoting Nepal at the international level? <br />
	</strong> <br />
	Thai Airways was the first airline to operate jet service to Nepal and introduce this country to the world. These days, many airlines are inspired to operate their services in this country due to our successful operation for the past 44 years. THAI had actively participated in “Visit Nepal Year 1997” and spread good word all over to promote “Nepal Tourism Year 2011” as well. We joined hands with the organizers of Asian Mountain Bike championship in 2008 by offering special fares to the participants all around the world. In addition, we organized a big puja same year to introduce Lumbini to the pilgrims from all around the world. This year, we are going to sponsor the famous Nepali musical group “Sur Sudha” to perform in Thailand. <br />
	<br />
	<br />
	<strong>How cooperative are the Nepali Government institutions in helping meet the demands from this market? <br />
	</strong> <br />
	Thai Airways has been getting a very constructive support from the government bodies in Nepal. This is one of the reasons behind our uninterrupted service for the past 44 years. We have always been able to bring into operation the required number of flights connecting Kathmandu and Bangkok as per our market demand. This cooperation is good for both the countries in terms of tourism, economy, education and other sectors. We are thankful to the Nepal Government, NAC, CAAN, TIA, ATC, NTB, NATTA and PATA for the continued support extended towards THAI. <br />
	<br />
	<br />
	<strong>Most of the flights made to Nepal are targeting migrant workers. How sustainable is this policy? <br />
	</strong> <br />
	Labor traffic does not occupy a major business of our flight operations, it is only a partial business of our total occupancy. Since the very beginning, we have had different segments of traffic like the royalties, frequent flyers, government officials, diplomats, expats, students and the tourists. Labor traffic is also part of our business but as I said we don’t depend heavily on it. <br />
	<br />
	<br />
	<strong>What are the operational difficulties and facilities in Nepal? <br />
	</strong> <br />
	Lack of proper infrastructure, unstable government, political instability and unhealthy competition among budget airlines are the drawbacks hindering smooth operation of the renowned carriers such as THAI. <br />
	<br />
	<br />
	<strong>Operating in Nepal is said to be cheap. What is your experience? <br />
	</strong> <br />
	We do not think operating in Nepal is cheap. On the contrary, it is one of the most expensive in terms of ground handling, parking and landing, ground space, rental, ramp, fuel and all kind of other charges. <br />
	<br />
	<br />
	<strong> How are you managing your ground handling staff and crew members? <br />
	</strong> <br />
	THAI has its own handling service in Nepal. It has never compromised in quality services; therefore, we have our own operational, ground handling and administrative staff directly under the THAI set up of course. <br />
	<br />
	<br />
	<br />
	<br />
	<br />
	<strong><br />
	</strong></p>
<p>
	<strong>GSAs that Fuel the Business <br />
	<br />
	<br />
	By Gaurav Aryal </strong><br />
	<br />
	<br />
	Around 85 per cent of international airlines operating in Nepal have made their presence felt through a number of GSAs <br />
	<br />
	<br />
	International airline companies operating in Nepal prefer having a presence through their General Sales Agents (GSA) rather than having their local office stationed in the country. Around 85 per cent of international airlines operating in Nepal have made their presence felt through GSAs. Out of the 28 international airlines currently in operation, only four of them, namely Thai Airways, Air India, Qatar Airways and Etihad Airways have their country offices in Nepal. A source at a leading travel agency under the condition of anonymity said “It’s not only offline but also the online airlines that are operating through their GSAs in Nepal.” <br />
	<br />
	<br />
	Sunil Sharma, Managing Director at Society Travel Service Pvt Ltd said that offline GSAs could be of any number as travel agents have Special Prorate Agreement (SPA) with offline airlines on a code sharing basis. He said that such offline airlines carry transit passengers flying from Nepal to various sectors and destinations around the world. Sharma, who is also a GSA of RAK Airways said, “It would be a major headache for airline companies to have their office setup here and run after various things ranging from policies to issues regarding aviation fuel. The airlines feel it would be a waste of time as the documentation procedure here is difficult along with the bureaucratic hassles. GSAs have the knowhow about local issues and it would be easier for the airlines to operate through GSAs who are handed over with specific duties and responsibilities.” <br />
	<br />
	<br />
	Similarly, it is believed that the GSAs have a greater knowledge on the local market as they are the local partners that have been in existence for a long time. “GSAs bear expenses, mobilise local staff, have detailed information about the local market, and having a GSA is cost effective than having an airline office established here. So, the international airlines prefer having GSAs rather than setting up their local offices of their own,” said the source. GSAs, usually the agent for sales of air tickets, are also the partner for marketing the airlines they represent. The source said that airlines and agents in Nepal jointly carry out marketing campaigns for the airlines. According to the source, the travel agencies are lured to work as GSAs because they receive override commissions along with additional commissions and other benefits like travel certificates, and staff trainings among others. Sharma also said that GSAs work on override commission and set up office, hire staff required at the corporate office and even at the airport. However, ground handling is not allowed to be performed by GSAs as it is taken care of by Nepal Airlines Corporation for every airline other than Thai Airways and Air India. “The majority of the clientele of GSAs are anybody going abroad, be it tourists, migrant workers, students, business persons, visitors, expatriates and everybody else who is travelling,” said a source at a leading travel agency. The source added that the ratio of Nepalis to foreigner passengers is 75:25 per cent. Sharma said that the companies that work as GSAs for passenger segment are also the Cargo Sales Agents (CSA) with the respective airlines. Sources said that GSAs have been operating in Nepal for over three decades now. <br />
	<br />
	<br />
	However, sources said that it is difficult to exactly pin point the size of the GSA market and their respective market share because everything depends on the demand and supply of flights. They added that the demand and supply keeps on varying constantly. <br />
	<br />
	<br />
	The number of international air passengers flying to and from Nepal has increased over the years and so has the number of flights. In the first three months of this year, 717,182 international air passengers travelled via Nepal. According to the data of Nepal Tourism Board, 207,961 tourists arrived in Nepal via air route from January to April 2012. It is a 23.1 per cent increment from 168,958 tourist arrival during the same period of 2011. The major reason behind the increment in air passengers is the increase in tourist inflow and migrant workers going abroad in search of job opportunities, according to Ratish Chandra Lal Suman, General Manager at Tribhuvan International Airport. President Tours and Travels (PTT) represents around half-a-dozen airlines as their GSA. Gulf Air, Qantas Airways, Kenya Airways, United Airlines, Air Mauritius, Indigo Air are some of the airlines that it represents but PTT is the passenger sales agent for United Airlines and Indigo Air. Similarly, Zenith Travels Pvt Ltd, another travel agency represents Bahrain Air, Sri Lankan Airlines, Spice Jet, Turkish Airlines and Qatar Airways Cargo as their GSA. <br />
	<br />
	<br />
	<strong>New Airlines in Nepali Sky <br />
	<br />
	<br />
	By Dipa Baral <br />
	</strong><br />
	<br />
	AirAsia X has already started operations while Malaysia Airlines and BB Airways are planning to operate international flights from September this year <br />
	<br />
	<br />
	Nepal is on the way to become an international air hub, thanks to the rise in the number of tourists and labour traffic in the past few years. AirAsia X, the budget carrier of AirAsia, has already started operations from July 4 this year while Malaysian national carrier Malaysia Airlines and Kathmandu based BB Airways are planning to operate international flights from coming September. Besides, some prominent countries have shown interest to sign Air Service Agreements (ASAs) or to review the past ASAs with Nepal. AirAsia X has started scheduled flights between Malaysian capital Kuala Lumpur and Kathmandu two times a week i.e. Tuesdays and Thursdays and has plans to add two more flights from September this year. The airline has priced its ticket at Rs 11,000 (exclusive of taxes) for one way trip. “The ASA between Nepal and Malaysia allows Malaysian airliners to operate 21 flights a week. But, AirAsia X has taken the permission to operate seven flights a week at the most,” said Suresh Acharya, Head of Air Services Agreement, Airlines and Airport Operation Division at the Ministry of Culture, Tourism and Civil Aviation (MoTCA). <br />
	<br />
	<br />
	BB Airways, promoted by TBI Group of Non Resident Nepalis (NRNs) in Japan, will also operate flights from September 13 this year. The company has already brought a Boeing 757-200 (ER) on wet lease that will operate nine flights a week to Doha and Malaysia. “We will bring another aircraft of the same category after a month of our formal operation and operate 17 flights a week,” said Shishir Bhatta, CEO of BB Airways. The company will also add Singapore and Bangkok to its destinations after getting another aircraft on lease. <br />
	<br />
	<br />
	BB Airways had acquired a license for international operations from the MoTCA in the first week of January 2012. “We are aiming to promote Nepali identity all over the world through our international air service and aspire to place Nepal in the global travelling map,” said Bhatta. The airways has not made public its flight rates yet but informed that the ticket booking will be available both online and via travel agencies. <br />
	<br />
	<br />
	The third airline in the pipeline to commence international air service in Nepal is Malaysia Airlines, the national flag carrier of Malaysia. “It’s been more than a year since Malaysia Airlines obtained operating license from the ministry. It has plans to start flights from coming September,” said Acharya. The airline has a permission to operate seven flights a week between Nepal and Malaysia. Similarly, four countries— Vietnam, America, Australia and Indonesia—have shown interest to sign ASAs with Nepal while United Kingdom (UK), Jordan, Pakistan, Bhutan and United Arab Emirates (UAE) want to review their past ASAs. “We have not been able to translate the talk into action because of Nepal’s vague stance on fifth freedom. When the world is practicing freedom right up to the ninth, we are still arguing over granting fifth freedom right,” said Acharya. In December 2010, the government had to bar Air Arabia from exercising its fifth freedom right to fly on the Kathmandu- Kuala Lumpur sector at the eleventh hour following pressure from Nepal Airlines Corporation (NAC). The national flag carrier had claimed that the decision will make serious impact on its business. The case is now pending in the Supreme Court. “Rather than restricting the government from signing deals with international airlines, it must concentrate on its own capacity building and adopt aggressive marketing strategy,” said Acharya. He underscored the need of networking, partnership and alliance with other airlines to sustain in the present world. However, if NAC had believed that Air Arabia’s fifth freedom right would jeopardise its existence, it is yet to see what impact the entry of these three new airlines will make. “Once the new airlines commence operation, the competition will become even tougher because they will certainly end NAC’s monopoly in catering to the labour traffic. But, we cannot hold the market for NAC as the country has been practicing liberal sky policy. It is high time that NAC improved its services and got ready for competition,” said Acharya. <br />
	<br />
	<br />
	The MoTCA has also issued a 45-day public notice on May 25 inviting domestic operators to apply for international operation. The notice has invited applications for a chartered and a cargo flight each. Companies having paid-up capital of Rs 500 million and security bond of Rs 5 million can apply for the license by paying Rs 50,000 to the ministry and avail the document of Terms of Reference (ToR). The companies should also pay Rs 50,000 per route as royalty. <br />
	<br />
	<br />
	“So far, Siddartha International Airlines has applied to operate a chartered flight. But we hope to get some more applications as there is still enough time to apply,” said a high level official at the MoTCA. <br />
	<br />
	<br />
	<strong>Five Airlines: One Destination <br />
	<br />
	<br />
	By Sushila Budhathoki </strong><br />
	<br />
	<br />
	Nepal experienced the formal beginning of aviation in 1949 when a lone 4-seater Indian Beechcraft Bonanza aircraft arrived in Kathmandu <br />
	<br />
	<br />
	With 27 per cent arrivals and 14 per cent departures out of the total passenger movement in the year 2011, the airline companies originating from India contribute a large chunk of the international passenger movement in Nepal via its flights to Kathmandu. According to the TIA passenger manifest, the airlines from India registered passenger arrival numbering 354,738 out of the total of 1,292,515 passengers that landed in Nepal and 377,867 departures out of the total 1,407,512 departing passengers. Nepal experienced the formal beginning of aviation in 1949 when a lone, 4-seater Indian Beechcraft Bonanza aircraft arrived in Kathmandu. And after a decade, Himalayan Aviation Dakota had the first charter flight between Calcutta (now Kolkata) and Kathmandu. Airlines from India came into business operation from 1953. More than half-a-century of existence in the Nepali sky, Indian airliners still prove to be among the leading carriers that bring substantial number of passengers to Nepal. Ranjan Pokhrel, Head of the International Relations Department at CAAN, says, “If we look into the history of Nepali aviation, we find that the Indian airliners have made a significant contribution to Nepal’s aviation development.” He adds, “Indian airliners are important not only for the aviation sector but also to the economic, social and cultural aspects of Nepal. They are contributing towards providing transport facilities, bringing Indian tourists and strengthening the high level political relationship between Nepal and India from the beginning.” Currently, there are five Indian carriers - Air India, Jet Airways, Jet Lite, Indigo Airlines and Spice Jet - operating between Nepal and India. Kingfisher Airlines, once a major operator on the Kathmandu-Delhi route, has postponed its many international flights including the Kathmandu sector. Air India now operates 32 flights in a week which includes a daily flight between Kathmandu and Delhi and 4 flights a week on the Kathmandu-Kolkata and Kathmandu-Banaras routes. Similar is the story of another Indian carrier Jet Airways which operates a daily flight each on the Delhi-Kathmandu and Mumbai-Kathmandu sectors. Jet Lite, Spice Jet and Indigo have one flight each on the Delhi-Kathmandu route on a daily basis. <br />
	<br />
	<br />
	Nepal Airlines Corporation (NAC), the only Nepali airlines which pioneered flights to Indian cities has now postponed its flights since November 2011. It used to fly to Patna, Calcutta, Mumbai and Bangalore earlier. In the last two decades, NAC has not added any new aircraft. Pradip Karki, Director of Traffic Management at NAC, however, assures that flights to Indian destinations will resume soon. He says NAC must resume flights to India with a new fleet and the government should support the idea. He adds, “We have discussed and signed an MoU with the aircraft manufacturing company to either buy or lease aircraft. There may be Airbus A320 - a 150 seater or A330 - a 250 seater that will operate flights to India in the future.” Most Indian carriers are said to be low cost carriers (LCCs) when compared to other airlines. The fare for the economic class seats starts at Rs 6,300 while business class seats cost a maximum of Rs 34,000 on the Kathmandu-Delhi route. Many other international airlines have started to fly in the same route and the competition has grown stronger. TK Saha, the Country Manager at Air India says that his team is happy with the sector. “In spite of severe competition by other international airlines as well as Indian competitors, we are maintaining and operating our flights with an average of 74 per cent occupancy,” he adds. <br />
	<br />
	<br />
	Nepali and Indian aviation authorities reviewed the Air Service Agreement (ASA) in 2009 to permit Nepali airline companies to fly 24 destinations in India. As per the reviewed ASA, airlines from Nepal can incre',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-08-22',
			'keywords' => '',
			'description' => 'The flow of international passengers in the first quarter of 2012 has been impressive enough to raise optimism among the concerned stakeholders. The statistics between January and March 2012 is an indication that international air service and passenger movement to and from Nepal is set to register a significant increase this year compared to 2011.',
			'sortorder' => '550',
			'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) 13 => array(
		'Article' => array(
			'id' => '649',
			'article_category_id' => '46',
			'title' => 'Salman Lafit Rawn',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size: 14px;"><strong><br />
	</strong></span></p>
<p>
	<span style="font-size:14px;"><strong>We Have To Work According To Consumer Psychology’</strong></span></p>
<p>
	<span style="font-size:14px;"><strong><br />
	<br />
	<br />
	</strong></span></p>
<p>
	<img alt="rawn" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/rawn-interview(1).jpg" style="width: 230px; height: 350px;" vspace="5" /><br />
	<br />
	<strong>Salman Latif Rawn <br />
	Country Manager, Nepal <br />
	Coca-Cola Sabco <br />
	</strong><br />
	<br />
	<br />
	Salman Lafit Rawn is the country manager of Coca-Cola franchise in Nepal since January 2012. Prior to joining Coca - Cola, he had worked in the capacity of the General Manager at Pepsi Cola franchise Iran. He has also worked as the Country Manager at Alokozay Group of Companies in Dubai – UAE . From 2005 to 2007 he was with coca-cola company managing its franchise in Afganistan in the capacity of Country General Manager. An MBA Graduate from the institute of Business Administration in Lahore, Rawn has more than 25 years of extensive and successful experience in the Fast Moving Consumer Goods (FMCG) industry. In an Interview with New Business Age Rawn shared the expansion and investment plans of his company for Nepal and also shed light on the existing challenges. Excerpts: <br />
	<br />
	<strong><br />
	We have heard about the massive expansion plan of Coca-Cola in Nepal. Would you like to shed light on it? <br />
	<br />
	</strong><br />
	The Coca-Cola Group has been working on the expansion of the available categories of its beverage. Right now, we are only doing the Returnable Glass (RGB) and PET business categories. We are investing 23 million USD in a new plant in Terai this year which will be the group’s largest single-time investment in Nepal so far. Internationally, we have many areas where we work in, for example, juice, water and energy drinks. Taking into account the uniqueness and demand of this market, we are planning to introduce some of those products here in the coming years. <br />
	<br />
	<br />
	It’s tough bringing investment in Nepal or convincing people for funding, especially when the political and business environment is not very constructive. However, we have managed to bring investment this time and we are hopeful that if we could use it well, we could bring in more money for this country. <br />
	<br />
	<strong><br />
	What can be the positive outlook for this investment? <br />
	</strong><br />
	<br />
	If we are making profit from this country, we also have to return something to it. There will be new expansions in terms of investing in the plant and machines and it will create new employment opportunities for people. Besides, we will be contributing more to the government exchequer. Nepal is a landlocked country where we need to import most of the raw materials which means that more money will go to the government coffer in the form of Customs Duty or Value Added Tax (VAT) <br />
	<br />
	<strong><br />
	I believe that Coca-Cola has not introduced a wide range of products that are available in many other countries. What are you doing in this regard? <br />
	</strong><br />
	<br />
	Coca-Cola has a wide range of products. Unfortunately, the size of the market is too small to produce all of those products in Nepal. Putting up a manufacturing facility for everything produced by the group will be highly capital intensive. However, we are trying to bring machines which can produce multiple products. Another constraint for this is the per capita income of the Nepali people which is very low. An ordinary Nepali citizen would not spend much on beverages. We are more dependent on tourists and their consumption trend. But this does not mean that we will not introduce any new products in Nepal; we will first import a new product range in Nepal from our plants in the neighbouring country. If we see demand for those products in the market, we will then accordingly set up the manufacturing plant here. We can introduce juice, water and energy drinks and add more flavours to the existing products in the future. <br />
	<br />
	<br />
	<strong>Though the per capita income of the Nepalis is still low, the distribution system for products like beverages has expanded in Nepal in recent years due massive expansion in road network. Has not this development in infrastructure helped in increasing the business prospects? <br />
	</strong><br />
	<br />
	These aspects are not enough because we have to work according to consumer psychology. It has been discovered through our consumer researches and direct discussion with the consumers that people living in European countries and Western territories don’t limit their beverage consumption only to events or family gatherings. It is part of their regular life as well whereas in Nepal, there is still a trend to consume beverage during particular events and festivals or in the presence of guests. The per capita soft drink consumption of the Nepalis is less than eight bottles a year in comparison to other South Asian countries where it is anywhere from 24 to 48 bottles a year. It will certainly be safe for us to introduce new range of products as and when Coca-Cola becomes a part of the Nepali people’s everyday lives. <br />
	<br />
	<br />
	<strong>Coca Cola enjoyed 70-80 percent of market share in Nepal till a few years ago. That figure is now reduced to 66 per cent due to aggressive marketing from the competitor. What are you doing to regain the lost market share? <br />
	</strong><br />
	<br />
	I have worked in markets where we had as much as 92 per cent market share. But these percentages are not attainable when there are two competitive companies operating in the same market. The reality is that when two companies are working competitively, market shares settle down somewhere between 60 and 40. I have worked both with Pepsi and Coke and I know where the market share of Coke is higher than Pepsi or vice-versa and what are the reasons behind it. Our objective behind expansion and investment is to have greater market share and product availability during the peak season. If my production capacity does not allow me to reach everyone during the peak season when they want to consume my product, people will not consume my products in the future. It’s because that opportunity will be grabbed by someone else. So we are trying to regain that lost opportunity which someone else has grabbed. And the moment we have that, the lost market share will automatically come back to us. <br />
	<br />
	<br />
	<strong>What are Coca-Cola’s marketing strategies in Nepal that has helped the brand to maintain its market leader position? <br />
	<br />
	</strong><br />
	Multinational companies implement different marketing strategies at different locations. Despite having a vast range of products in their portfolio, they do consider various aspects for example, which market to go, when to go, what amount of market maturity to seek etc before launching their products. You might find some products in Nepal that are imported in the quantity of thousands or hundreds. However, when it comes to manufacture those products here, it is imperative to justify the required investment. It is the same with us so we are waiting for the right time to introduce additional products. <br />
	<br />
	<br />
	<strong>Bottlers Nepal – the Nepali bottler of Coke – had won the Country of the Year Award in 2010. When next can we expect a similar feat from Coca- Cola’s Nepal operation? <br />
	</strong><br />
	<br />
	We bagged the ‘Country of the Year Award’ continuously for two years in 2009 and 2010. There are nine countries in the group now and all of them compete for this award. Surely, there are countries that have advanced technologies such as South Africa. There is Sri Lanka, Uganda, Ethiopia and we are competing with all of them. But even this year, we won two awards— Employee Engagement Award and Best Water Usage Award. We are competing again and hope to get the Country of the Year Award in the coming years. <br />
	<br />
	<br />
	<strong>How has the ongoing financial crisis affected the soft drinks market in Nepal? <br />
	<br />
	</strong><br />
	We, or for that matter, any other FMCG companies have been seriously affected on two counts. First, with all those days of closures, the production has been disturbed. Second, the distribution of the product has become very difficult. Continuous bandhs have affected our transportation system adversely and a weak transportation mechanism impacts our production system as well. We produce less when there isn’t enough transportation facility available. When we produce less, the cost per case goes high and it affects us as producers as well as the consumers. <br />
	<br />
	<br />
	<strong>What kind of challenges do you see in your job in the Nepali market? <br />
	<br />
	</strong><br />
	Electricity is a very big challenge because we are in a business where products are best served when they are chilled. We have distributed refrigerators to the outlets in the market but they cannot sell chilled drinks due to power outage. Another challenge is gasoline or diesel prices which increase every couple of months or so. At the same time, we can’t increase the price of our products to adjust accordingly. The frequent hike in petroleum prices also makes it difficult for us to decide on our annual budget. The third biggest challenge is the dollar rate fluctuation which has been impacting us heavily as we have to import 90 per cent of the raw material that we use. <br />
	<br />
	<br />
	<strong>Is that the reason for you to reduce your advertising budget? <br />
	<br />
	</strong><br />
	We have not reduced our advertising budget as such. We have rather changed the focus of our advertising campaigns. For example, if there is lesser electricity, the people will be watching television for a lesser duration of time. So we thought of diverting our investment from electronic mediums to advertising through hoarding boards that are more visible and do not get impacted by power outage. You can see increased number of such hoarding boards in the Kathmandu Valley when you move around. There is hardly any main road where Coca-Cola is not present so it’s just a shift of focus. <br />
	<br />
	<br />
	<strong>How do you view the present competition in Nepal’s soft drink market? <br />
	</strong><br />
	<br />
	There are two major categories in the Carbonated Soft Drink (CSD) industry —water and flavoured drinks. There is no ‘A’ Class player in water so far in Nepal which is dominated by a few local brands available in the market. However, there is a competition between two players in the flavoured drinks category. Our competitor is trying to build a market for itself and so are we. But the good thing is that our share of the market pie becomes bigger with the growth in the market size. I could see that as an industry, we are less dependent on trying to eat each other’s pie. Instead, we are trying to increase the total size of the market. The fight between the two companies was stringent in the past but it is not the same anymore because a person working for Coca-Cola today can work for Pepsi tomorrow and vice-versa. At present, the fight is more indirect for example; it is for the space in the outlets. The general size of our grocery shops is small so it’s not just the soft drinks producers but the entire FMCG industry that is jostling for space in the outlets. <br />
	<br />
	<br />
	<strong>It is said that one of the major problems in the Nepali market is that of arrears in collection of dues from the distributors. How is your experience? <br />
	<br />
	</strong><br />
	We don’t have such issues. I have also talked with other FMCG companies and even they are not operating on credits. However, I don’t say that we don’t have any arrears at all. There are credits in the market but these are secure credits. Our distributors are working with us for a reasonable period of time so there is a certain level of credibility in our relations. If we realise that a distributor or distributing channel might land us in troubled waters, we prefer not to extend any unsecured business with them. <br />
	<br />
	<br />
	<strong>Bottlers Nepal has increased its spending on CSR activities in recent years. Can you tell us about the new CSR activities that are being planned? <br />
	<br />
	</strong><br />
	I could see a huge chunk of activities this year coming under our CSR initiatives apart from our regular activities. We have been working on water utilisation, plantation and education and we have also been sponsoring certain orphanages. Our new project is to extend support to women entrepreneurs so we have adopted a vision “5 BY 20” which is a commitment to empower 5 million women to turn successful entrepreneurs by the 2020. Nepal has also been selected for the project from the South-West Asia Region. A senior person representing the Director level of the India Division of the Coca- Cola Company will be visiting Nepal next week to explore the details of the campaign. The Senior Vice President of the division will accompany him and together they will be setting different criteria. The criteria will entail aspects like who can qualify, what can be the measures to qualify and what will be an appropriate form of support for women entrepreneurs etc. Another project which we are going to introduce is ‘Support My School’. It is about kids who run away from schools, are not interested in study and do not have access to studies. This big campaign will be looking at ways to help them through uniforms, books, building libraries and classrooms etc. <br />
	<br />
	<br />
	<strong>As a global operator, what are the challenges you face in a country like Nepal? <br />
	<br />
	</strong><br />
	Nepal is among the very few countries in the world which are landlocked. It does not have much of its own revenue generation. To analyse how much people can buy from us and what things they will be interested in, we will have to watch their source of revenue. Like I said earlier, the smaller base of the country, lack of electricity and diesel, and dollar rate fluctuation are the major challenges in bringing big investment to this country. Another problem is that of finding the right people to work because the Nepali industry is small. Had there been multiple industries, there would have been a bigger pool of human resource to choose from. <br />
	<br />
	<br />
	<strong>What kind of government support are you looking for? <br />
	</strong><br />
	<br />
	The government should see the quantum of direct or indirect taxes and exchequers that we are paying. If it increases the excise duty or other duties at a very abnormal rate to industries like us, bringing investment to this country and creating opportunities for employment will be difficult. We are trying to expand our business so we need facilitation in technology and computerisation from the government. We will not be able to bring investment to this country if we have to wait years-on-end for approval on bringing software and technology. At present, we are trying to bring in a software called SAP and it’s already been a year since we applied to the Inland Revenue Department for the approval. Our application is simply gathering dust there. SAP will enable our headquarters to evaluate our work and access our records through our central server. It is easier to operate when this system is installed and therefore, we have been requesting the government to approve our application. We are not the first company in Nepal to use this software as there are some other companies that are already using the same technology. We have explained this to the government authorities but they told us to wait for the permission. We have met the concerned officials and satisfied all their queries but there is no progress so far. How can we bring more technology and investment in this country if the government does not facilitate manufacturing industry with the required technologies? It is our sincere request to the government to do the needful and approve our application on the SAP software. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'Salman Lafit Rawn is the country manager of Coca-Cola franchise in Nepal since January 2012. Prior to joining Coca - Cola, he had worked in the capacity of the General Manager at Pepsi Cola franchise Iran. He has also worked as the Country Manager at Alokozay Group of Companies in Dubai – UAE',
			'sortorder' => '549',
			'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) 14 => array(
		'Article' => array(
			'id' => '648',
			'article_category_id' => '47',
			'title' => 'Beauty Queen Turned Businessperson',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Gaurav Aryal <br />
	<br />
	</strong><br />
	Ritu Singh Vaidya, Managing Director at United Traders Syndicate Pvt Ltd (UTS), has enjoyed every role she has stepped into. When she walked on the ramp, she mastered it with her style. When she was on the stage, she cherished the music and touched the listeners’ heart. Now, she is handling the position of a leading business person very well. Model, former Miss India, singer and now a businessperson; Vaidya has perfected the responsibilities she thinks are brought to her by destiny and her dedication in the pursuit of dreams. <br />
	<br />
	<img alt="Ritu Singh Vaidya" border="1" height="362" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/personality(3).jpg" vspace="5" width="300" /><br />
	<br />
	<br />
	Ritu Singh Vaidya always dreamed to set up her own business although she was at the pinnacle of her modelling career. With twists and turns of her career that were never disappointing for her, she has now climbed up the ladder towards a leading position in one of the leading business houses of Nepal, Vaidya’s Organisation of Industries and Trading House (VOITH). Her working style is ruled by discipline as she was raised in a family with partly business and partly army background. <br />
	<br />
	Vaidya recalls her childhood in Delhi as “nice, pleasant and loving”. She feels fortunate about having pleasurable childhood days. Her grandfathers were in the business sector and were running their family business in present day Pakistan. She says her grandfathers moved to Delhi when she was an eighth grader. She was educated in Delhi and after completing school, Vaidya pursued fashion designing for her higher studies. She is also a BA in Economics and Political Science from Delhi University. <br />
	<br />
	It was obvious for the beautiful and charming Vaidya to be offered a career in glamour and modelling industry. She believes destiny took her into the world of modelling. “I was in class XII when my friends and I participated in the May Queen contest. So, that was the beginning of it.” She was crowned the May Queen title. She actively began modelling after many offers started coming her way. Her journey on the ramp did not stop immediately though. She went to the Miss India contest and grabbed the title that many Indian women dream to achieve – Miss India – in 1991. After winning the title at home, her next target was to win international titles. Vaidya became the fifth runner up in Miss World, second runner up in Miss Asia World and first runner up in Miss India Universe. <br />
	<br />
	“I took it (modelling) on because it just came to me. It happens that things suddenly start working for you and I think they are the natural things to happen because they just come your way,” she says, “But I always had an entrepreneurial spirit in me. I always wanted to establish myself in some kind of business where I felt challenged. I am someone, who likes a routine, discipline and innovativeness.” Vaidya believes she was always inclined towards business. Even during her modelling days, she would dream of getting into some sort of business in the future. “I wasn’t somebody who was going into Bollywood” she says. <br />
	<br />
	Vaidya says she has never been a person who is devoted to only one thing. “When I got into the glamour world, I was also very focused on my studies and about what I was going to do next. Though I was very much enjoying it, I couldn’t see myself turning forty on the ramp,” she explains. <br />
	<br />
	Everything was organised and settled for young Vaidya even at the age of 20. She says she was almost leading a life what people start mostly at their middle ages. She was just 20 when she met businessman Suraj Vaidya in Kathmandu at a charity fashion show organised by him for Bal Mandir. The professional acquaintance grew into love and later to marriage within a matter of years. Vaidya recalls that the initial days of living in Nepal after her marriage was completely different from her earlier days. She says it was a total change in her life, family, career and friends. “The first year of marriage was difficult because I was not used to a lot of things. But my husband made it very easy for me as he was very easy and patient about me even when I went back to Delhi 15 times in 12 months,” she shares. <br />
	<br />
	Vaidya ventured into fashion designing in her initial days in Nepal and worked as a fashion designer for seven years. That was the time when she was also rearing her child. Vaidya stopped designing clothes and dived into her new found passion – singing. She released an album, ‘Sun Zara’ and appeared in her album’s music videos as well. However, she has abandoned her role as a singer as she thinks it consumes a lot of her time and takes her away from her family. “When I released my first album, I really thought I can manage singing simultaneously with my business commitments but later I realised it is not so. For Hindi singing you have to be in Mumbai and be accessible whenever somebody calls you. That was not something I was looking for and desired in my life. Singing for films and doing stage shows is not my cup of tea.” She started taking responsibilities in VOITH when Suraj Vaidya was busy travelling and spending time for larger business responsibilities. <br />
	<br />
	“He had a great ideology on which everybody was moving and that was a great success too. Once he was unwell and had to take rest for treatment. That was when I took up the work,” she says. At present, she is completely looking after UTS and its divisions that deal in Toyota and heavy equipments. Along with it, she occasionally looks after the spa she has set up a few years back. When it comes to working approach, she says, “My approach is very simple. I try to simplify things and believe in a totally centralised command. But jobs are designated to different people and they have a total free hand in what they do. But yes, it has to be totally accountable.” She encourages flow of new ideas from her employees but feels that the final central command has to be strong enough to prevent things going haywire. Vaidya thinks employees are most happy when you let them do the work, give them a good working environment, be ready to listen to their suggestions and at the same time reward them for what they do. Vaidya has a disciplined working style. “Because I am disciplined, a lot of my staff has to be disciplined. They can’t take anything lightly because they know when I say something that needs to be done. I am very focused on making sure that whatever needs to be done, should be done in the given frame of time,” she emphasises. <br />
	<br />
	<img alt="Ritu Singh Vaidya" border="1" height="460" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/personality1(1).jpg" vspace="5" width="300" /><br />
	<br />
	Vaidya reveals that her organisation is planning to expand into newer sectors like hydropower, hospitality and education. She is trying to consolidate what is already with the organisation along with planning of new ventures. She says, “Hydropower should be there soon as it is already in the pipeline and we are seriously looking into hospitality. Hopefully, we will be coming with new ventures in the next two years if we don’t have external disturbing factors like endless bandhs and political crisis.” Vaidya believes that she has not earned enough money to spend on charities and philanthropic activities. “I believe in doing philanthropy with my own money. I won’t be convinced about it if I am going to throw somebody else’s money and call it a charity. If I can do well and manage to spare money from my earnings; that is the right kind of charity that I would want to do.” <br />
	<br />
	She thinks she is very compartmental and does not like to mix her personal and professional life together. So, she never takes her office to home. “My time is totally devoted to home when I am home. Similarly, when I am in the office, I give all the time to my office works,” Vaidya reveals. Evenings are for her son and husband while she reserves her morning time usually for exercising. A strong believer in destiny, Vaidya is very satisfied with what life has brought to her. She takes her life as it comes and is ready for wherever it leads to. Optimistic in nature, one shouldn’t be surprised to find her trying new things, ventures and passions in the days to come. Her well wishers shouldn’t be astonished to see her in a completely new avatar not too long in the future. <br />
	<br />
	<br />
	<img alt="Ritu Singh Vaidya" border="1" height="296" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/personality2.jpg" vspace="5" width="300" /><br />
	<br />
	<br />
	<strong>PERSONAL SIDE <br />
	</strong><br />
	<br />
	<strong>Take on success:</strong> I am a very happy content person. Nevertheless, the day I do not want to do anything more, I would think that I am dead. From that point of view, there is a lot more to do. <br />
	<br />
	<br />
	<strong>Planning a holiday:</strong> I like things to be done perfectly and neatly. I make sure I do a lot of research on wherever I am going and know the places so that I won’t miss what I want to see and what we are going to do. I like my travel to be organised right from my ticketing and stay to every itinerary and the places where we are going. <br />
	<br />
	<br />
	<strong>Brand consciousness:</strong> If something is nice it does not need to be branded. I believe in being comfortable and wear what I think looks best on me. <br />
	<br />
	<br />
	<strong>Secret of beauty: </strong>Fitness is something I really believe in. You should be very fit because body is the vehicle that carries you. So you have to take care of it. <br />
	<br />
	<br />
	<strong>Spending leisure time:</strong> Reading and listening to music. I read more of philosophies and autobiographies. I love Indian classical music and mostly listen to Hindi music and instrumental and for English, I like jazz and more soulful songs. <br />
	<br />
	<br />
	<strong>Favourite pastimes: </strong>I love to sing and do gardening and am passionate about my house. Therefore, I love cleaning on my off days. <br />
	<br />
	<br />
	<strong>Better mother or a better boss: </strong>I try to justify every role - a good mother, good wife, good house keeper and a good business person. <br />
	<br />
	<br />
	<strong>Favourite Travel Destination: </strong>Paris among all because it is the most romantic and artistic city and also Venice. Turkey was also a very nice place where we went recently and Russia turned out to be a pleasant surprise. <br />
	<br />
	<br />
	<strong>Sporty indulgence: </strong>I used to be a badminton champion in my school. I adored playing volleyball and basketball but now I am more into gymming. <br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-09-17',
			'keywords' => '',
			'description' => 'Ritu Singh Vaidya, Managing Director at United Traders Syndicate Pvt Ltd (UTS), has enjoyed every role she has stepped into. When she walked on the ramp, she mastered it with her style. When she was on the stage, she cherished the music and touched the listeners’ heart.',
			'sortorder' => '548',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	)
)
$current_user = null
$logged_in = false
simplexml_load_file - [internal], line ??
include - APP/View/Elements/side_bar.ctp, line 60
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::_renderElement() - CORE/Cake/View/View.php, line 1224
View::element() - CORE/Cake/View/View.php, line 418
include - APP/View/Articles/index.ctp, line 157
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::render() - CORE/Cake/View/View.php, line 473
Controller::render() - CORE/Cake/Controller/Controller.php, line 968
Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200
Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167
[main] - APP/webroot/index.php, line 117

Notice (8): Undefined variable: file [APP/View/Elements/side_bar.ctp, line 133]
Code Context
  //  $file = 'http://aabhiyan:QUVLg8Wzs2F7G9N7@nepalstock.com.np/api/subindexdata.xml';



    if(!$xml = simplexml_load_file($file)){
$viewFile = '/var/www/html/newbusinessage.com/app/View/Elements/side_bar.ctp'
$dataForView = array(
	'articles' => array(
		(int) 0 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 1 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 2 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 3 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 4 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 5 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 6 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 7 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 8 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 9 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 10 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 11 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 12 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 13 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 14 => array(
			'Article' => array(
				[maximum depth reached]
			)
		)
	),
	'current_user' => null,
	'logged_in' => false
)
$articles = array(
	(int) 0 => array(
		'Article' => array(
			'id' => '664',
			'article_category_id' => '60',
			'title' => 'Cathay Pacific Airways Wins “World’s Best Business Class”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="" border="1" height="214" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/cathay(1).jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	Cathay Pacific Airways has been awarded with “World’s Best Business Class” award at Skytrax World Airline Awards ceremony held on July 12. The Skytrax awards, conducted by the global aviation research organisation, polled over 18 million business and leisure air travelers from more than 100 countries. <br />
	<br />
	<br />
	“The result is the global benchmark of airline excellence, in which more than 18 million airline passengers from across the world picked their choices. We couldn’t have delivered the industry-beating products and services without our customers. I would also like to thank all for their genuine collaboration in the design process,” said John Slosar, Chief Executive of Cathay Pacific. <br />
	<br />
	<br />
	As passengers enter the cabin, they immediately appreciate the sense of space and openness. It has clean, sculpted lines define private seats with direct aisle access. Abstract patterns, richly woven fabrics, fresh-cut orchids and original artwork harmonise to create a warm, premium residential feel. The new Business Class features natural leather, brushed steel and richly woven fabrics that blend soothing green, brown and champagne tones. Abstract patterns on table tops, fresh-cut flowers and splashes of colour in storage areas provide elements of warmth. <br />
	<br />
	<br />
	Each seat is equipped with a universal Power Supply outlet to keep electronic devices fully charged. A Multi-port Connector includes an RCA port, an iPhone/iPod connector and a USB port. The RCA and the iPhone/iPod connector allow passengers to connect their own devices and watch video through the Personal TV. Cathay Pacific is also introducing a new line of Business Class service-ware featuring simple, elegantly designed white porcelain by Narumi of Japan. The appetiser plate features an abstract bamboo pattern also found on the signature plate introduced in The Deli of The Cabin. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Cathay Pacific Airways has been awarded with “World’s Best Business Class” award at Skytrax World Airline Awards ceremony held on July 12. The Skytrax awards, conducted by the global aviation research organisation, polled over 18 million business and leisure air travelers from more than 100 countries.',
			'sortorder' => '562',
			'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) 1 => array(
		'Article' => array(
			'id' => '663',
			'article_category_id' => '60',
			'title' => 'Air Arabia Named World’s Second Best Performing Airline',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="" border="1" height="221" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/airarabia.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	Air Arabia, demonstrated sustained profitability and solid growth margins in 2011, placing it at number two among all airlines worldwide. In each of the past years, the airline has advanced its ranking in the TPA rankings. <br />
	<br />
	<br />
	Air Arabia, the Middle East and North Africa’s first and largest low-cost carrier, has been ranked as the world’s second best performing airline in a study by Aviation Week, the leading global aviation magazine. The Top-Performing Airlines (TPA) Study ranks the top 10 performing airlines worldwide, based on five different performance categories, including financial and operational performance. <br />
	<br />
	<br />
	Air Arabia, demonstrated sustained profitability and solid growth margins in 2011, placing it at number two among all airlines worldwide. In each of the past years, the airline has advanced its ranking in the TPA rankings. <br />
	<br />
	<br />
	“To be ranked second among all airlines worldwide for the level of our performance, it’s a remarkable achievement and a source of great pride for everyone at Air Arabia,” said, Adel Ali, Group Chief Executive Officer of Air Arabia. “As we continue to expand into new geographies and consolidate our leadership position in existing markets, Air Arabia is uniquely positioned to capitalise on the many exciting opportunities present in the aviation sector today.” <br />
	<br />
	<br />
	Air Arabia, which operates flights to 75 destinations from three regional hubs, delivered strong financial and operational performance in 2011. The low-cost pioneer launched six new destinations and took delivery of six new aircraft in 2011, while carrying a total of 4.7 million passengers, an increase of six per cent compared to the previous year. <br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Air Arabia, demonstrated sustained profitability and solid growth margins in 2011, placing it at number two among all airlines worldwide. In each of the past years, the airline has advanced its ranking in the TPA rankings.',
			'sortorder' => '561',
			'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) 2 => array(
		'Article' => array(
			'id' => '662',
			'article_category_id' => '60',
			'title' => 'Qatar Airways Named Best Airlines',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong><img alt="" border="1" height="158" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/qatar(4).jpg" vspace="5" width="400" /><br />
	<br />
	Qatar Airways has seen rapid growth in just 15 years of operation, currently operating a modern fleet of 109 aircraft to 117 key business and leisure destinations. <br />
	</strong><br />
	<br />
	Qatar Airways has been named Airline of the Year 2012 for the second year running at the prestigious annual Skytrax World Airline Awards held at the Farnborough Air Show. The Airways retained the coveted title of Airline of the Year 2012 and notched up two further awards – Best Airline in the Middle East for the seventh consecutive year and the Best Airline Staff Service award in the Middle East. The winners were announced at an award ceremony attended by leading figures from the global aviation industry at the Farnborough Air Show held on June 12. The Skytrax awards, conducted by the global aviation research organisation, polled over 18 million business and leisure air travellers from more than 100 countries. <br />
	<br />
	<img alt="" border="1" height="401" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/bestqatarairways.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	Akbar Al Baker, CEO of Qatar Airways hailed the achievements as “fantastic recognition” of all employees at Qatar Airways for the dedication and commitment to their job. “I am extremely proud of the adulation given once again by the very people who fly - the travelling public, for their support and faith in Qatar Airways,” he said at the ceremony. Retaining awards is always difficult, but we have managed to do so amid the tough competition which only shows we remain focused in our day to day job of offering passengers what they fully deserve; the highest standards of service both in the air and on the ground, he added. <br />
	<br />
	<br />
	Edward Plaisted, CEO of Skytrax said, “To win the ‘Airline of the Year’ award for a second successive year is a remarkable achievement for Qatar Airways, and a clear recognition of the continued efforts by its management and staff to be the world’s best airline.” Qatar Airways has seen rapid growth in just 15 years of operation, currently operating a modern fleet of 109 aircraft to 117 key business and leisure destinations across Europe, Middle East, Africa, Asia Pacific, North America and South America. Since the beginning of the year, it has launched flights to Baku (Azerbaijan), Tbilisi (Georgia), Kigali (Rwanda), Zagreb (Croatia), Erbil (Iraq), Baghdad, and Perth (Australia). The Airways has planned to launch its services to new destinations, including Kilimanjaro (Tanzania), Mombasa (Kenya), Yangon (Myanmar), Maputo (Mozambique) and Belgrade (Serbia) within a couple of months. <br />
	<br />
	<br />
	The subsidiary of Qatar Airways, Qatar Duty Free, has announced an exciting Summer Surprises Promotion for passengers departing from, or transiting through, Doha International Airport (DIA). The promotion that runs until August 31 allows customers who spend $136 or more on duty free purchases to automatically be eligible for a raffle draw to win shopping vouchers worth US $10,000, $5,000 and $1,000 and discount coupons. <br />
	<br />
	<br />
	Similarly, Qatar Airways has launched a Twitter-powered global social media campaign designed to connect people from around the world. The airline has also announced a Twitter-only competition called Tweet-a-Meet through which participants can win business class trip to their favourite destination. <br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Qatar Airways has been named Airline of the Year 2012 for the second year running at the prestigious annual Skytrax World Airline Awards held at the Farnborough Air Show. The Airways retained the coveted title of Airline of the Year 2012 and notched up two further awards – Best Airline in the Middle East for the seventh consecutive year and the Best Airline Staff Service award in the Middle East. The winners were announced at an award ceremony attended by leading figures from the global aviation industry at the Farnborough Air Show held on June 12. The Skytrax awards, conducted by the global aviation research organisation, polled over 18 million business and leisure air travellers from more than 100 countries.',
			'sortorder' => '560',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 3 => array(
		'Article' => array(
			'id' => '661',
			'article_category_id' => '60',
			'title' => 'Etihad Airways Q2 Revenue US$ 1.25 Billion',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="etihadairways" border="1" height="178" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/etihad(1).jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	Etihad Airways’ ASKs rose by 25 per cent to 15.2 billion in the second quarter, as the fleet grew to 67 aircraft from its earlier 61. The revenue of Etihad Airways in six months this year has increased by 31 per cent to US$ 1.25 billion from US$ 957 million as compared to last year. The number of passengers has leapt up by 34 per cent to 4.89 million during the six months from 2.55 million in 2011. The increase in overall capacity and improved seat factors has contributed to the increment in the revenue, says the company. <br />
	<br />
	<br />
	The record results were boosted by the airline’s growing network of code-shares and strategic partnerships which together fed 800,000 passengers into Etihad Airways’ network in the last six months, contributing US$ 281 million. James Hogan, President and Chief Executive Officer of Etihad Airways said, “These results are an endorsement of our strategy, which has seen us widen and deepen our partnerships in addition to continued focus on our organic growth plan.” <br />
	<br />
	<br />
	Etihad Airways’ available seat kilometres (ASKs) rose by 25 per cent to 15.2 billion in the second quarter, as the fleet grew to 67 aircraft from its earlier 61. Likewise, revenue passenger kilometres (RPKs) rose 33 per cent to 11.8 billion from 8.9 billion. During the period, the Airways took minority equity stakes in Aer Lingus and Virgin Australia, adding to its minority shareholdings in Air Berlin and Air Seychelles. These five airlines together carried 72 million passengers on 376 aircraft in 2011, generating combined revenues of more than US$ 14 billion. <br />
	<br />
	<br />
	Recently, the Airways unveiled plans to launch daily flights to Sao Paolo in Brazil, its first South American destination, which will start from June 2013. “We are very pleased to see the projected revenue benefits and cost synergies for both Etihad Airways and our partners tracking in line with, or even above, plan which shows once more that our partnership strategy delivers value to all parties’ shareholders,” said Hogan. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Etihad Airways’ ASKs rose by 25 per cent to 15.2 billion in the second quarter, as the fleet grew to 67 aircraft from its earlier 61. The revenue of Etihad Airways in six months this year has increased by 31 per cent to US$ 1.25 billion from US$ 957 million as compared to last year. The number of passengers has leapt up by 34 per cent to 4.89 million during the six months from 2.55 million in 2011. The increase in overall capacity and improved seat factors has contributed to the increment in the revenue, says the company.',
			'sortorder' => '559',
			'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' => '660',
			'article_category_id' => '40',
			'title' => 'Drug Drive : The Rising Business Pharmaceutical Companies In Nepal',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Sushila Budhathoki <br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<br />
	<span style="font-size:14px;"><strong>Drug Drive : The Rising Business Of Pharmaceutical Companies In Nepal</strong></span></p>
<p>
	 </p>
<p>
	<br />
	<br />
	<img alt="coverstory July 2012" border="1" height="226" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs.jpg" vspace="5" width="400" /><br />
	<br />
	Nepal’s pharmaceutical expense is at par with other South Asian countries, thanks to the increase in the number of pharmaceutical companies and their production. In 2008, the total per capita pharmaceutical expenses was US$ 6.96 while the total amount of pharmaceutical expenses stood at Rs 13.09 billion in Nepal. Mahesh Gorkhali, President of Association of Pharmaceutical Producers Nepal (APPON) says Nepali companies are growing at around 15-20 percent annually. The growth has resulted in around 42 per cent command of the market by Nepali products with strong presence and distribution network of marketers in the rural and remote areas. <br />
	<br />
	<br />
	A ‘Market Study Report on Pharmaceutical Products in Nepal’ conducted in 2011’ depicts the shining business of Nepali pharmaceutical industries. According to the report, Nepal experienced significant growth in medicine production in Asia when the growth rate was 11 per cent globally in the year 2009. Nepal obtained annual growth rate of pharmaceutical products at 19.52 per cent even ahead of India who saw 13 percent growth during the same period. According to the report, the total turnover of Nepali companies was approximately Rs 6.8 billion where the company registering lowest sales turnover was Rs 20 million and the highest at about Rs 600 million. The World Health Organization’s report ‘The World Medicines Situations 2004’ listed Nepal among 84 countries that produced pharmaceutical finished products from imported ingredients whereas India was categorized among 17 countries that had innovative capacity. <br />
	<br />
	<br />
	Pradeep Jung Pandey, President of Lomus Pharmaceutical Pvt Ltd says that Nepali companies are capable of producing some of the segments out of big variants of medicinal products. He adds, “We have the potential of increasing the market share at a fast pace.” Most of the Nepali allopathic medicines are of oral dosage forms of tablets, capsules, liquid, syrup, powder for oral suspension while topical preparation like cream, ointment and lotion are also produced. If vaccines, contraceptives, ARV (Anti Retroviral), large volume drugs and few others are excluded, Nepali companies tend to acquire big market share, say experts. Radha Raman Prasad, Director General and Chief Drug Administrator at Department of Drug Administration (DDA) states that medicines can be imported like other goods from the global market. “When the market is dictated by the Nepali industries, the foreign companies that cannot compete will automatically exit,” he says. <br />
	<br />
	<strong><br />
	Demand, Supply and Investment <br />
	</strong><br />
	<br />
	<img alt="" border="1" height="228" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs1.jpg" vspace="5" width="300" /><br />
	<br />
	Demand of Allopathic medicines is high in Nepal. There are altogether 45 Nepali companies operating in the market with 4,677 brands and thousands of products. According to the market study 2011, public expense on pharmaceuticals was Rs 2.96 billion in the year 2008. Similarly, total private expense on pharmaceutical products was Rs 10.06 billion. <br />
	<br />
	<br />
	The size of Nepali medicine market is estimated at Rs 18 billion and the Nepali companies command 42 per cent market share. Manufacturing of oral antimicrobials like penicillin, β-lactam, Non penicillin, antifungals, anthelminthic and antiviral (Simplex) is common while some are engaged in producing non-steroid pain killers, nutritional supplements, enzymes, haematinics, oral steroids, cardiovascular (heart and blood pressure), diabetes, psychiatry (mental disorder) etc. <br />
	<br />
	<br />
	Many Nepali and foreign companies are importing and supplying pharmaceutical products. Their role is significant for fulfilling the demand of various kinds of medicines in Nepal. According to DDA, 257 foreign pharmaceutical companies acquired licenses to sell their allopathic medicines in the year 2067/68. Similarly, 11,769 medicines are registered with DDA including 7,092 foreign and 4,677 Nepali products. There are altogether 1,544 wholesalers and 8,110 retailers throughout the country. <br />
	<br />
	<br />
	The estimated investment in the pharmaceutical industry of Nepal is around Rs 735 million to Rs 1.47 billion. Mahesh Gorkhali, President of Association of Pharmaceutical Producers Nepal (APPON), explores the need of high investment for the establishment of a pharmaceutical Company. He says, “For a good company mainly producing tablets, capsules and liquids, around Rs 25-30 million is required as an investment depending upon the choice of machinery equipments, building, location etc. Establishing an industry in city areas is usually costlier than in the terai or hilly regions.” Nepali industries are not API (Actual Pharmaceutical Ingredients) manufacturers; they import raw materials from other countries. The cost of the raw materials is also increasing investment in the pharmaceutical industries. <br />
	<br />
	<br />
	<strong>Emerging Pharmaceuticals <br />
	</strong><br />
	The number of Nepali allopathic companies has reached 58, according to the DDA. Altogether, 11 new allopathic companies have been registered in the FY 2068/69 whereas only two allopathic companies were registered in the previous year. A number of pharmaceutical companies have been established in different districts like Dang, Bharatpur, Sunsari, Jhapa, Bhaktapur, Kathmandu, Nawalparasi, Birgunj, Lalitpur, Bara and Parsa with investment of billions of rupees (see table). According to the DDA, pharmaceutical companies registered in the FY 2068/69 have proposed a total investment of 1.83 billion Rupees including investment from both herbal and allopathic companies. <br />
	<br />
	<br />
	<strong>Job Destination <br />
	</strong><br />
	<img alt="" border="1" height="220" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs3.jpg" vspace="5" width="300" /><br />
	<br />
	<br />
	Pharmaceutical business has employed thousands of people in pharmaceutical production, distribution and marketing. There are 4,200 medical representatives, 2,474 pharmacists and more than 13,000 professionals employed with various pharmaceutical companies. Regular human resource like managers, accountants, computer operators, receptionist, cleaners, drivers, kitchencrew, HR and admin officers also find work with these organisations. Pharmaceutical companies also provide internship to hundreds of students every year who are mostly recruited in the very companies at a later stage. Sanju Acharya, Administrative Assistant at Nepal Pharmacy Council, opines that there is a huge demand of pharmacy graduates in the pharmaceutical sector. Pharmacy professionals are of two categories; those who have graduated in Pharmacy and above up to PhD level and the ones who complete three year Diploma in Pharmacy under the Council for Technical Education and Vocational Training-CTEVT program. Pharmacy students are highly in demand at Pharmacy colleges as teachers and laboratories and hospitals as researchers or lab assistants. By law, a hospital must own a pharmacy operating 24 hours, which also provides opportunity to these students. Graduates from the Institute of Medicine (IOM) and Kathmandu University are mostly found applying for foreign colleges in search of greener pastures. Having seen the better job opportunities, many colleges have started to include pharmacy as a subject in their curriculum. There are around 16 pharmacy colleges affiliated to Tribhuvan University, Pokhara University and Purbanchal University. Together, they produce pharmacy graduates for the industry with an annual intake of around 600- 650 graduates yearly. Kathmandu University runs B Pharm, M Pharm, Pharm D and PhD programs while CTEVT runs three year Diploma in Pharmacy program at 24 different institutions, with an annual intake of 960 persons. The undergraduates are mostly utilized in community pharmacies. <br />
	<br />
	<br />
	<strong>High Competition <br />
	</strong><br />
	<br />
	The market share of Nepali companies in the urban set up is approximately 20 per cent and the rest 80 per cent in the rural markets. The reason behind this is credited to high competition among Nepali pharmaceutical companies and limited customers or prescribers, in spite of progressive marketing and promotion of the medicines. It clearly depicts that if the share of Nepali products increases in the city areas, their total share in the pharmaceutical market will experience a significant growth ultimately. However, new industry registrations too signal to follow the same trend which industrialists fear would lead to further competition. Government authorities state that the import of large volumes of drugs from other countries is due to the scarcity of varieties of medicines in the market. On the other hand, Industrialists accuse the government of importing many similar products from India which they say is also one of the reasons behind severe competition. Most of the medicines are ‘me too’ products which has compelled high competition between Nepali companies as well as the imported ones. Most pharmaceutical products are related to a particular disease or a group of diseases (therapeutic segment), and are not spread in diverse therapeutic segments. Apart from that, products like Albendazole, Amoxicillin, Azithromycin, Ciprofloxacin, Fluconazole, Paracetamol, Ibuprofen, Hyoscine, Metronidazole, Ofloxacin, etc are manufactured by around 20 to 30 companies. Similarly, around a dozen of companies produce the cardiovascular and diabetes medicines. “There should have been competition on varieties and quality of the medicines but some Nepali companies are desperately competing because of the similar products,” says freelance market researcher Rajan Raut. Similar products from foreign countries find their stand in the market even tougher as some of the Nepali products have even substituted imported products. <br />
	<br />
	<br />
	<img alt="coverstory" border="1" height="771" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs12.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	<strong>Monitoring and Inspection <br />
	</strong><br />
	<br />
	The DDA – that has 31 staffs which include 13 drug inspectors of different levels – has been facing a hard time in operating effectively. Such a limited manpower is considered a very low number to maintain the growing number of pharmaceutical industries, wholesalers and retailers. With little human resource to speak of, DDA runs different programs like marketing authorization, inspection, import control, licensing, market control, medicine advertisement and promotion, quality control and clinical trial. Quality inspection of medicines including laboratory reagents, surgical items, bandage, sutures, catheters etc are also some areas the DDA has been found lacking at. National Medicine Laboratory is the only public sector laboratory which monitors quality of the medicines through samples collected by the DDA. However, it doesn’t publicize the results publicly. Lack of good distribution practice and storage practice seems a common problem in many places. This is the reason why consumers often complain about consuming outdated medicines or shortage of essential medicines, blood, oxygen etc. Lack of proper monitoring system of pharmaceutical product is feared to grow ineffectiveness. No medicine company is found reporting its medicinal errors. As per the law, up to Rs 300,000 is to be paid by the manufacturer as compensation if medicine causes harm to the consumer. Baburam Bhattarai, President of Nepal Chemist and Druggist Association urges the need of regulating unregistered medical stores because according to him, they contribute towards creating health hazards. He says, “The government monitoring system has not been so effective. Besides, the current political situation is also fostering such business.” There is no specified division or section in DDA for WHO-GMP inspection either. Although the DDA has insisted that it has not found a single case of counterfeit drug, doctors from different districts bordering India fear its presence in the Nepali market. High prices of medicines have always been a controversial issue. DDA has fixed the actual price for up to 10 medicinal products including saline, painkillers and oral dehydrates. Shyam Adhikari, Drug Inspector at the DDA says they are looking at a mechanism to ascertain the prices of Nepal made medicines as well as the imported ones in the coming days. Recently a ‘Price Monitoring Committee’ has been formed with the participation of members from the DDA, pharmaceutical industry and consumers’ representatives. However, the companies insist that they keep the profit margin scientifically with the approval of the Government of Nepal. Pandey points that the Nepali medicines are priced either at par or a little cheaper than those of their Indian counterparts. Citing the example of a paracitamol tablet, he says, “A single unit of citamol tablet costs Rs 2 in Pakistan and India while it costs only one rupee in Nepal.” Pharmaceutical companies do not produce drugs in a large volume neither do they run with full capacity. Nepali pharmaceutical companies are using 20 to 90 per cent of their respective capacities for production and operate about 8 hours daily which is said to be the major reason behind the high production cost of the medicines. <br />
	<br />
	<br />
	<strong>Investment in Research &amp; Development <br />
	</strong><br />
	<br />
	There are only two or three companies that have been producing biological products. Most of the demand of injectables and biological drugs is fulfilled through imports. Essential medicines which require high technology are donated to Nepal by different international aid agencies from abroad. They also provide vaccines for expanded programs of immunization and medicines for the treatment of tuberculosis, leprosy, HIV/AIDS and sexually transmitted infections (STI), malaria, kala-azar and filariasis etc, for free. Nepali companies are producing around 33 per cent of essential medicines mainly producing therapeutic drugs. Industrialists are apprehensive about invest in research &amp; development (R&amp;D) because of the current political instability and law and order situation, say analysts. Most of the Nepali companies have limitations in terms of technical capability and innovation. On the other hand, foreign companies including multinational ventures have access to latest technologies and are engaged in import of medicines. However, there is no technical collaboration between the multinational ventures and Nepali companies. Industrialists too agree that Nepali pharmaceutical companies should conduct varieties of research and fulfil the demand of high tech medicines in Nepal. They accuse the government for not supporting them adequately as R&amp;D requires high investment, manpower and technology. <br />
	<br />
	<br />
	<strong>The Way Forward <br />
	</strong><br />
	<img alt="" border="1" height="200" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs4.jpg" vspace="5" width="300" /><br />
	<br />
	Many Nepali companies are manufacturing high quality products of international standards and fostering the growth of the Nepali medicine market. Zinc tablet, which is useful for treating ringworm disease in children and popular among international companies, is a product of Deurali Janata Pharmaceutical (DJP). Radha Raman Prasad, Director at DDA, seems satisfied with the quality of Nepali pharmaceutical products. He says, “Few samples have been found lacking quality in the market due to some reasons but I think the overall quality of Nepali medicines is at par with international standards.” Experts involved in the business of medicinal products suggest drug producers to work collectively towards exporting Nepali medicines. Prasad admits that export is not just limited to the quality of the drug. He says that every country has some clauses and Nepal can fulfil those clauses. Some of the Nepali companies are even trying to export drugs to Singapore and Malaysia. “We are very rich in resources for pharmaceutical products, all we need is skilled manpower and the technology. Provided these aspects, we have huge potential for export,” he adds. The much awaited National Drug Policy has been drafted by the DDA. According to Prasad, efforts have been made during the preparation of the draft to address the issues of pharmaceutical industries. He says, “The draft focuses on new areas of thrust, in comparison to the previous policy which focused on export. It has a provision of contract manufacturing for technology input, providing incentive for R&amp;D activities, manufacturing, clinical research and attracting foreign countries for R&amp;D.” From a human resource perspective, students who have studied bio pharmacy abroad have started returning to Nepal. This development promises to enable companies to operate various researches. In August 2011, DDA permitted contract manufacturing of pharmaceutical products to the manufacturing contractors owning WHO-GMP certificate and licenses of the products. The Department of Commerce and Supplies and District Administration Offices are conducting inspections on a regular basis to find out sales of expired drugs and also making their findings public. GMP and GLP (Good Laboratory Practice) standards are meant to pave the way for assuring efficacy and quality of the drugs in the international market and are expected to ease the export of the products. Currently, there are 26 companies that are manufacturing pharmaceutical products by maintaining GMP standards. The rest are also in the process of obtaining GMP as the DDA has urged all non-GMP certified companies to come under GMP certification by the end of the year. <br />
	<br />
	<br />
	<img alt="" border="1" height="457" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs_11.jpg" vspace="5" width="401" /><br />
	<br />
	<strong>COVER STORY <br />
	</strong><br />
	<br />
	<strong>‘The Growth of Nepali Pharmaceutical Industries is Quite Appreciable’ <br />
	</strong><br />
	<img alt="" border="1" height="330" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/BABURAM-BHATTARAI.jpg" vspace="5" width="300" /><br />
	<br />
	<strong>BABURAM BHATTARAI <br />
	President <br />
	Nepal Chemist and Druggist Association <br />
	(NCDA) <br />
	<br />
	</strong><br />
	<br />
	<strong>How do you see the growth of Nepali pharmaceutical industries in recent times? <br />
	</strong><br />
	<br />
	The growth of Nepali pharmaceutical industries in recent time is quite appreciable. Around 42 per cent home demand is fulfilled by them so it can be considered satisfactory. I think the Nepali medicines are doing good business because the products are qualitative and the demand is increasing on a regular basis. I see a golden future for Nepali pharmaceutical products. <br />
	<br />
	As far as my knowledge is concerned, the level of consumption for most of the products made in Nepal is satisfactory and so is their supply system. However, most of the companies are producing the same types of medicine which has created unhealthy competition. <br />
	<br />
	<br />
	<strong>How is the production and export-import business of pharmaceutical products in Nepal? <br />
	</strong><br />
	<br />
	The history of allopathic medicine in Nepal is less than 100 years old. Medicine was used with the start of the modern medical system and during that time, pharmacy products were imported from different countries while such services were limited to only the big cities. The situation has changed now and we have many pharmaceutical companies established in our own country. Imported as well as home grown products are available even in the remote areas of the country today. However, it has not been smooth yet and the mishandling and misuse of drugs is a great threat. <br />
	<br />
	<strong><br />
	Counterfeit drugs is said to be one of the biggest challenges faced by the pharmaceutical industry. What is NCDA doing towards it? <br />
	</strong><br />
	<br />
	I agree with this statement to some extent. Basically, there are two reasons behind the availability of counterfeit drugs. The first one is that we share a open border with India and the second is that there are so many unregistered medical stores all over the country. The government monitoring system has not been effective enough. I don’t think that the NCDA member firms are involved in the supply of such medicines. The government should regulate these unregistered medical stores and bring them under the purview of the legal system. NCDA, on its part, is planning to release the list of registered medical stores and products available at these stores, on its website. It is always ready to support government initiatives to control the availability of counterfeit drugs. <br />
	<br />
	<br />
	<strong>Consumers often complain that the medicine prices vary from pharmacy to pharmacy. It is also said that the margin of profit is kept very high in pharmaceutical products. What do you have to say about such practices? <br />
	</strong><br />
	<br />
	I cannot agree with your statements. NCDA was established with the mission to supply qualitative, effective and safe drugs at affordable prices and we are always conscious regarding the uniformity of medicine prices. However, there may be some misuses from unregistered stores despite all our efforts and commitments. NCDA is committed to endorse the sale of medicines at their justified prices. However, if there are any complaints on account of price manipulation, please do inform to any of our NCDA branches so that we can regulate such pharmacies. <br />
	<br />
	<br />
	As for the margin of profit being high in pharmaceutical products, this is nothing but plain rumor. We are keeping the profit margin scientifically with the approval of the Nepal Government. <br />
	<br />
	<br />
	<strong>A great amount of medicines are sold on a daily basis without the doctors’ prescriptions. How risky is this for public health? <br />
	</strong><br />
	<br />
	This is a serious question that you have brought up. We all are quite aware about the health service standards in our country .We have a very limited numbers of doctors and that too, they are available only in the urban areas. Therefore, scores of villagers do not have access to services provided by doctors. This explains the situation of no prescriptions where there are no doctors. You have to acknowledge the fact that the patients have to get medicines anyway. Nowadays, the paramedics (HA, CMA &amp; ANM) are dispensing medicines in the remote areas. The government is not bothered about this problem and many serious health hazards occur due to the state’s apathy towards health services. <br />
	<br />
	<br />
	<strong>The shortage of general medicines in rural areas often inconveniences many families in Nepal. What’s your take on this? <br />
	</strong><br />
	<br />
	Although our business is a service business, there is a profit motive as well. The few pharmacy assistants and professionals that we have in the country confine themselves to the densely populated areas because they want to do good business. However, there are so many remote areas where there is no storage of general medicines but the problem is that the pharmacy dispensers are not available in such areas. I have also repeatedly drawn the attention of the concerned authorities to run orientation training targeting these areas so that the problem of dispensing medicines can be solved to a large extent. <br />
	<br />
	<br />
	<strong>How wealthy are we in terms of human resources especially in the production, marketing and distribution of pharmaceutical products? <br />
	</strong><br />
	<br />
	As far as the availability of human resources is concerned, let me assure you that many pharmacists and pharmacy assistants are produced every year. The number of pharmacy colleges is also increasing. Most of the pharmacists are employed in industries and academics whereas the pharmacy assistants are engaged in dispensaries. But the tragedy is they are not available in the remote areas. <br />
	<br />
	<br />
	<strong>The Nepali pharmaceutical industries asked the government to stop importing Indian drugs sometime ago. Can it be considered reasonable in a liberal market economy? <br />
	</strong><br />
	<br />
	Nepal is a small country in comparison to our neighbors and the market of any product is limited. It is not bad to promote indigenously produced medicines until our economy is competitive enough to export. Billions of rupees have been invested in the pharmaceutical industries. I think it’s the duty of the government to support these companies by whatever means possible. <br />
	<br />
	<br />
	<strong>What is the possibility for exports of Nepali drugs abroad? What are the challenges in this regard? <br />
	</strong><br />
	<br />
	I don’t see any possibility of Nepali medicines for export in the current context. Even though all the companies of Nepal follow the WHO GMP standard, different countries may have different technical standards. The private sector effort to export medicines may not be an effective one. The government initiation is the primary requisite and a must to realize export efforts. <br />
	<br />
	<br />
	<strong>COVER STORY <br />
	<br />
	<br />
	‘The Overall Quality of Nepali Medicines is at Par with International Standards’ <br />
	</strong><br />
	<br />
	<img alt="" border="1" height="330" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/RADHA-RAMAN-PRASAD.jpg" vspace="5" width="300" /><br />
	<br />
	<strong>RADHA RAMAN PRASAD <br />
	Director General <br />
	&amp; Chief Drug Administrator <br />
	Department of Drug Administration <br />
	</strong><br />
	<br />
	<br />
	<strong>How do you see the growth of Nepali pharmaceutical industry in recent times? <br />
	</strong><br />
	<br />
	New industries are entering into the market but most of them are producing ‘me too’ drugs. The competition is heightening among such kind of drugs. The trend of new industry registration shows that producers are willing to produce similar kind of products that already exist in the market. Such a trend is more common than producing vital drugs and competing with imported products which may help reduce imports and market share of imported drugs. Although new industries have taken industry establishment reference letter for producing large volume drugs, further progress is not seen in the actual establishment of industries. It is very important to produce large volume drugs with quality but little progress has been made towards it. Even though producers are promising to do it, it has not happened till date. <br />
	<br />
	<strong><br />
	New industries are being established every year. Do you see potential in them to make the country self sufficient in drugs and reduce imports? <br />
	</strong><br />
	<br />
	It is not that they do not have the capacity to produce to the extent of self sufficiency but it is limited to specific drugs. The environment for producing numerous drugs to the extent of self sufficiency has already been created but not for all medicines. Nepali companies have a market share of 43 per cent. If vaccines, contraceptives, ARV (Anti Retroviral), large volume drugs and few others are excluded, Nepali companies will have a bigger market share. Some companies have an almost equal market position as Indian companies. Ethical promotions and marketing strategies have helped them create a niche in those sectors. Nepali drug industries have their presence in almost every part of the country. <br />
	<br />
	<br />
	<strong>Around 60 per cent of the drugs market is covered by the foreign companies. How can the share of Nepali industries be increased? <br />
	</strong><br />
	<br />
	The consumers of medicines are mostly the prescriber groups. So, the confidence of the doctors and prescribers needs to be won with ethical marketing and by offering qualitative drugs. This will help to increase the market share. However, only over-the-counter sales and promotion through pharmacies cannot deliver good results compared to ethical promotions. <br />
	<br />
	<br />
	<strong>Although imported drugs are said to be expensive than locally produced ones, why aren’t Nepali medicines preferred by the prescribers? How can Nepali products be promoted? <br />
	</strong><br />
	<br />
	It is necessary to look minutely into actual pricing. Some local drugs may be cheaper but it is difficult to say that products from established brands are actually cheaper. Such products are priced similar to the imported drugs. Quality assurance is the most important factor for promoting Nepali industries. Numerous producers and their associations as well as the DDA have moved towards quality assurance through various measures like complying with the WHO GMP standards. All the stakeholders are moving ahead keeping in mind quality as their central motive. It is a matter of satisfaction that Nepali industries are committed to quality assurance and they too are producing international standard drugs. Even though few samples have been found lacking quality in the market due to some reasons, I think the overall quality of Nepali medicines is at par with international standards. Many industries are now shifting to new locations, upgrading their technologies and carrying out renovation of their production units. Once quality is promised to the consumers, the market share will definitely increase. <br />
	<br />
	<br />
	<strong>It is often said that substandard medicines are being imported and expired medicines sold in pharmacies. What is your take on this situation? <br />
	</strong><br />
	<br />
	At times, it’s not only the drugs imported from India but also the Nepali drugs that are found to be below standard. However, we cannot generalise the situation and say that all products lack quality. There have been cases like discovering some particles on tablets and solidified dry syrup but these are exceptions. We have not found the entire batch of a particular medicine failing in case of one or two samples that are found defective. If the temperature is not adjusted as per the requirement during storage, some medicines change colour naturally over time. A pharmaceutical company produces drugs which is transferred to distributors, then to retailers and finally to the consumers. If the quality is not assured in the supply chain, some complications may arise despite the producer maintaining optimum quality. The producers are slowly getting conscious about it and the DDA too is committed to move towards this direction. <br />
	<br />
	<br />
	Regarding the sales of expired drugs, it is very important to maintain a good pharmacy and dispensing practice. The pharmacy workers must properly look at the prescriptions and scrutinise the medicines before selling them and also give proper information to the buyers. When this system is not practiced, there is a chance of expired drugs getting sold. Substandard and expired drugs must be filtered at the time of sales. At present, there are inspections carried out by the Department of Commerce &amp; Supplies and District Administration Offices to detect sales of expired drugs. Such activities have definitely brought a lot of awareness among consumers and also controlled such incidences. <br />
	<br />
	<br />
	<strong>Counterfeit drugs is also said to be one of the biggest challenges faced by the industry. What is DDA doing towards it? <br />
	</strong><br />
	<br />
	We have not found counterfeit drugs as of now. It’s true that we have found some medicines that are not registered here but they are not counterfeit in the true sense of the term. Such unregistered drugs are confined to around four-five types which have high difference in their prices such as Ciprofloxacin, Omeprazole and some aphrodisiac drugs. We have been carrying out awareness campaigns asking customers to mandatorily take bill on the purchase of drugs which will prevent buying of unauthorised drugs. A conscious citizen must as for bill on purchase of medicines and also seek information about the medicines. <br />
	<br />
	<br />
	<strong>What is the level of competition of Nepali pharmaceutical companies among themselves as well as with the foreign companies? <br />
	</strong><br />
	<br />
	The competition has always been there but it should now focus on quality while competing with ‘me too’ drugs in the market. Earlier, cardiac medicines were not produced within Nepal but now we have them. We also did not have the doctors’ confidence about higher antibiotics but now they prefer Nepali products. These are definitely very good signs. We have been monitoring and conducting inspection of Nepali industries, overseeing their quality and standard etc so we encourage using Nepali drugs with confidence. This confidence has also led Nepali industries beginning to tap the foreign market in recent times. <br />
	<br />
	<br />
	<strong>Raw materials as well as finished drugs are being imported at present. Which one is beneficial for our market situation? <br />
	</strong><br />
	<br />
	The Nepali industries are compelled to import raw materials to produce drugs here because we are not API (Actual Pharmaceutical Ingredients) manufacturers. Therefore, it is necessary to import raw materials. In the current global context too, there is no base to deny import of any products. When the market is dictated by the Nepali industries, the foreign companies that cannot compete will automatically exit. <br />
	<br />
	<br />
	If Nepali companies can produce drugs here, the human resource can be rightly utilised. The availability of human resource is cheaper in Nepal than anywhere else. Qualified human resource is being produced within the country and at the same time, semiqualified human resource is equally available. We have a condition to import quality raw materials at competitive prices. It also creates employment not only in the production line but also in the marketing of products. The industries also pay taxes to the state so from that perspective, local industries must be promoted. <br />
	<br />
	<br />
	<strong>It is said that there is huge potential for export of medicines to India along with other markets. How much have we cashed in on this potential? <br />
	</strong><br />
	<br />
	That potential has not been adequately explored as of now. A few industries that have reached a certain level of success in the local market have started looking towards those markets. All the drug producers must collectively move towards this direction to explore the potential. <br />
	<br />
	<br />
	<strong>COVER STORY <br />
	<br />
	</strong><br />
	<strong>‘We have Gained Trust from the Consumers because of our Quality Products’ <br />
	<br />
	<br />
	<img alt="" border="1" height="214" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/MAHESH-GORKHALI.jpg" vspace="5" width="300" /><br />
	<br />
	MAHESH GORKHALI <br />
	President <br />
	Association of Pharmaceutical <br />
	Producers of Nepal (APPON) <br />
	</strong><br />
	<br />
	<br />
	<strong>How do you see the growth of Nepali pharmaceutical industry in recent times? What is the kind of investment required to establish a pharmaceutical industry at present? <br />
	</strong><br />
	<br />
	As per an estimate, we are growing at around 15 to 20 per cent annually. The cost of establishing a pharmaceutical industry in the country generally depends on the number of segments that the investors target to operate with. Pharmaceutical industries cover different segments like – tablets, capsules, liquids, injectables etc. If an industry tries to cover all these segments, high investment is required. At the same time, low investment can enable an industry to operate with a single segment. As per our calculation, anywhere from Rs 25 to 300 million investment is required for a company producing tablets, capsules and liquids depending upon the choice of the machinery equipments, building, location etc. Establishing an industry in city areas is usually costlier when compared to the terai or hilly region. <br />
	<br />
	<br />
	<strong>How is the production and export-import business of pharmaceutical products doing in Nepal? <br />
	</strong><br />
	<br />
	There are altogether 45 Nepali companies operating in our market. Investors generally produce materials which they can sell even if they have a high production. There is a wide variant of medicines available in the market and we are capable of producing some of these, for example, Paracitamol tablets which are popular as citamol in Nepali households. To meet the remaining demand, we import a good amount of medicines from India, Bangladesh and some other countries. The export potential of Nepali medicines has not been tapped as yet. Nepali pharmaceutical companies occupy around 40-45 per cent market share while the rest is of foreign companies. Our companies can increase their market share only if we could expand our businesses massively. If we do not want to be contended only in the national market, we must grow and focus on exports. <br />
	<br />
	<br />
	<strong>How favorable is the government’s policy regarding the pharmaceutical industry? <br />
	</strong><br />
	<br />
	We don’t find a clear-cut policy of government for the development of Nepali pharmaceutical industries. As such, the pharmaceutical market is rapidly growing internationally and we are obliged to introduce and produce newer medicines or molecules to survive in the market. Since we lack manpower in developing newer molecules, we try to import them as soon as they are developed. Department of Drug Administration (DDA) under the Ministry of Health regulates our companies but it usually hesitates to provide a license whenever we apply to import a new molecule. It says that the molecule is not mentioned in Pharmacopeia - a book where every medicine is featured. Actually, medicines are featured in Pharmacopeia sometime later after the invention. It’s the responsibility of the government to either perish or nourish the pharmaceutical sector as the citizens of this country have the right to have proper medications. By permitting to import newer molecules, providing incentives or soft loans and declaring tax holidays for some years will definitely create good environment for the pharmaceutical sector. The government must also act as a responsible body by addressing problems such as the shortage of powerhouse, in consultation with the stake holders. I think that the Ministry of Health has so many responsibilities and hence, they may not be able to look after the manufacturing industries properly. Nonetheless, I believe they will formulate some good policies in the near future to encourage new investors when they realize our potential as a growing industry. <br />
	<br />
	<br />
	<strong>What are the challenges of the Nepali pharmaceutical industry in meeting the demand of pharmaceutical products in the market? <br />
	</strong><br />
	<br />
	Around 250 companies are involved in importing medicines from other countries so the biggest challenge we have is the faith of the consumers on Nepali products. The pharmaceutical market normally grows with the increase in the prescriptions or the number of the prescribers. We have gained that kind of trust from our consumers because of the quality products we deliver. All the leading doctors and medical experts prescribe Nepal made products which means the main challenge is already taken care of. Another challenge is to introduce newer molecules. <br />
	<br />
	<br />
	We need some lab testing which are often tedious, time consuming and expensive. We need to maintain refresh standard for which we don’t have the facilities but that can be procured. Furthermore, we have to develop our human resources including the marketing professionals so we are conducting different trainings and workshops to improve their capabilities. <br />
	<br />
	<br />
	<strong>What is the benefit of importing pharmaceutical products from India? What kind of competition have domestic factories been facing with hundreds of Indian products and companies in the domestic market? <br />
	</strong><br />
	<br />
	While moving from illness to wellness in the case of human health especially, pharmaceutical products have proved to be one of the essential elements in curing diseases. However, we don’t produce all kinds of medicines. For instance, we don’t produce saline water which is considered as an urgent medication for many diseases. We import it mainly from India as medicines such as this are beneficial to human health. <br />
	<br />
	<br />
	Competition between companies is natural in every business and pharmaceutical industries are no exception. Competition with importing companies is ethical in our business. However, there seems to be a fierce competition between the Nepali companies because of similar medicinal products and limited customers. Everybody wants to promote his own brand and the more number of companies, the more number of brands are there. <br />
	<br />
	<br />
	<strong>Although imported drugs are expensive than locally produced ones, why aren’t Nepali medicines prescribed much? <br />
	</strong><br />
	<br />
	This is untrue as majority of the doctors are prescribing our medicines. This is the reason why we are having 40- 45 per cent market share despite having competition from so many foreign companies. There has been a good promotion of our medicines and the doctors prioritize them whenever they prescribe the medicines to the patients. <br />
	<br />
	<br />
	<strong>How wealthy are we in terms of human resources especially in the production, marketing and distribution of pharmaceutical products? <br />
	</strong><br />
	<br />
	Initially, we had a real problem with human resource be it the marketing or production areas. It was very hard to train young graduates especially those without a science background. Thus the promotion of the products used to be a difficult task in the past. <br />
	<br />
	<br />
	In production also, there were not enough graduates who could earlier meet our criteria. However, there are 17 - 18 colleges now with pharmacy as a major subject. They are producing a good number of bachelors every year that can be utilized in pharmaceutical industries. We don’t have scarcity of such manpower now. <br />
	<br />
	<br />
	However, we don’t have quality manpower who could import newer molecules from foreign countries. Good companies have been providing trainings for their employees and sending them to different countries like Japan, Bangladesh and India for their capacity enhancement. They are improving and we hope that we will produce the required manpower for this sector as well. <br />
	<br />
	<br />
	<strong>It is said that the margin of profit is kept very high in pharmaceutical products. What do you have to say about that? <br />
	</strong><br />
	<br />
	Even though it seems so, it is not true. Actually, certain products have really high margins mainly because of the high expenses involved in their production. To produce a single medicine, we import different raw materials including chemicals and packaging materials. Besides, producing quality medicine is a very lengthy and time consuming process. There are other costs involved too which make medicines more expensive, for example, the marketing aspect. Whatever is the margin, the fact is that the product must be sold because without the sale of a product, there can be no profit. <br />
	<br />
	<br />
	<strong>It is said that there is a huge potential for export of medicines to India along with other markets. How much have we cashed in on this potential? <br />
	</strong><br />
	<br />
	Let me give you an example when my company used to export medicines in India a few years ago. We had applied to the Indian authorities for exporting medicines to which they agreed and we started to send our medicines. However, despite having all the certification and documents of our products, they would put our stock in their quarantine office once it reached Raxaul in India. They would say that approval can be provided only after some lab testing but by the time they did so, it would be already six months late. Another three months would be spent for lab testing so it’s only after nine months that we would be able to get the approval to supply our medicines in the Indian market. The same process would apply for each consignment. After all this, the Indian retailers would not agree to keep medicines having less than six months of validity. It continued for two years and we had a business of Rs 50-60 million only. After two years, we could not undergo the criteria once they applied a new system for Nepali companies. It became costlier and that is when we stopped exporting our products. However, we are again targeting India for the expansion of our products and hopefully, we will be successful in our endeavour. <br />
	<br />
	<br />
	<strong>Raw materials as well as finished products are being imported at present. Is it beneficial for our market? <br />
	</strong><br />
	<br />
	Yes, it is. We cannot produce medicines without raw materials and finished products since we don’t have the big plants to produce chemical and other essential materials. We don’t need to produce raw materials ourselves because of the limited market we have. Unless we expand our market, we can continue to import these items. <br />
	<br />
	<br />
	<strong>COVER STORY <br />
	</strong><br />
	<br />
	<strong>‘Maintaining GMP and GLP Standards will give Credibility to our Products Internationally’ <br />
	<br />
	<br />
	<img alt="" border="1" height="204" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/MOHAN-PRASAD-AMATYA.jpg" vspace="5" width="300" /><br />
	<br />
	MOHAN PRASAD AMATYA <br />
	Chief <br />
	National Medicine Laboratory <br />
	<br />
	<br />
	</strong><br />
	<strong>What is the major function of the National Medicine Laboratory? <br />
	</strong><br />
	<br />
	Our main objective is to ensure that safe and effective medicines are available in the Nepali drug market. Though it is the Department of Drug Administration (DDA) that awards license to pharmaceutical factories, it is our responsibility to test and evaluate the standard of their laboratories and drugs and refer them for the registration. Factories should obtain market license for each of their products. We develop Reference Standard and make it available to the pharmaceutical companies and laboratories. We also inspect retail and wholesale pharmacies to check the quality of drugs. The price monitoring of the marketed drugs is within our scope of work and we deploy drug inspectors for this task. They visit the market on a regular basis, purchase drugs from the pharmacies and bring it to us. We inspect quality, composition, packaging and every other detail of these drugs. If such drugs are found below the standard, we report it to the DDA which recalls these products from the market. Similarly, we visit laboratories and inspect products of foreign countries before importing them to Nepal. <br />
	<br />
	<br />
	<strong>Pharmaceutical companies also have their own laboratories. How good are they? <br />
	</strong><br />
	<br />
	A pharmaceutical company must set up its own laboratory. We visit their laboratories and conduct a thorough inspection. Aspects like hygiene of the lab and precautions taken for the safety of its manpower, availability of equipments and trained manpower, location of the lab and its space, structure of the building, availability of water and other resources are taken into account while giving approval to the laboratories for production. We visit them regularly even after the approval Therefore, we must say that existing labs have been maintaining the required standard. Of course, there is a lot of scope for improvement and it’s a continuous process. All in all, they are good. <br />
	<br />
	<br />
	<strong>Out of 49 pharmaceutical factories operating in Nepal, only 26 have been producing pharmaceutical products under the World Health Organisation’s (WHO) Good Manufacturing Practice (GMP). Why is this number so low? <br />
	</strong><br />
	<br />
	It’s been about 8 years that Nepal became a member of the WTO. However, our pharmaceutical companies were established long before we got associated with the WTO. At that time, our aim was to encourage people to invest in the pharmaceutical sector so that the country can gradually substitute imported medicines. The procedure to obtain operating licenses was not that strict. Now that the country has entered an agreement with the WHO to maintain its GMP standard, we could not ask them to upgrade their laboratories and manufacturing units overnight. It requires huge capital for a company to be at par with the international GMP standard. The DDA has been asking the existing factories to upgrade themselves time and again by allowing a certain time-frame to them. In fact, the DDA has directed all existing pharmaceutical companies to upgrade themselves by the end of this year. Because of this provision, many companies have applied for GMP and few of them have already received the certification. However, there are still some companies that have not applied for this process. I believe the DDA will take adequate measures against such factories in the future. <br />
	<br />
	<br />
	<strong>Have all the pharmaceutical companies been maintaining Good Laboratory Practices (GLP)? <br />
	</strong><br />
	<br />
	It is very essential to maintain GLP to establish a pharmaceutical industry. Companies that do not maintain GLP are not allowed to begin production. Before any pharmaceutical product is produced, we check whether the laboratory has used standard raw material and put the lab in the suitable location and purchased good quality machines or not. When the product is made, we analyse its composition, packaging, punching, amount of active drug in the medicine and its storage. These aspects fall under GLP and we make sure that factories are up to the mark on each of these aspects before granting it permission to operate. To make our existing factories concerned about GLP, we conduct trainings on this aspect regularly. <br />
	<br />
	<br />
	<strong>What special benefits will we have by producing pharmaceutical products in line with the WHO’s GMP and GLP guidelines? <br />
	</strong><br />
	<br />
	Maintaining GMP and GLP standards will give credibility to our drugs in the international market. It will eventually pave way for the export of our products. Though there are only 26 pharmaceutical manufacturing companies that have been producing products maintaining GMP standard, about five companies are in the process to get the certification. We will be visiting their manufacturing plants and the laboratories to refer for the certification. <br />
	<br />
	<br />
	<strong>So, we do have an opportunity to export our products. <br />
	</strong><br />
	<br />
	Export is not just limited to quality of the drug. Every country has a specific policy about importing drugs from another country. If our country can fulfil those clauses, we won’t have problem in exporting our products. Even India that has been exporting its products to almost all corners of the world, is willing to import drugs from us. But it has set some clauses regarding drugs import. If we can fulfil these clauses, India can be a potential market for our medicines. Therefore, export is more related to the policy of a specific country. Some of our companies are trying to export drugs to Singapore and Malaysia as well. We are very rich in resources for pharmaceutical products. All we need is skilled manpower and the technology. Provided these aspects, we have huge potential for export. <br />
	<br />
	<br />
	<strong>What sort of drugs are we strong in and where do we still need to do research? <br />
	</strong><br />
	<br />
	The domestic production has been able to fulfil 60 per cent of the current demand. For the remaining 40 per cent, we have to be dependent on imports. We are strong in therapeutic drugs but we still have to be dependent on imports for injectable drugs and biological products. It takes a huge capital and expert manpower to produce such drugs. The labs need to be sterilised and made aseptic to produce these medicines. Even the building has to be designed in a specialised way for such drugs. There are only two or three companies that have been producing biological products. Most of the demand for injectable and biological drugs is fulfilled through imports. <br />
	<br />
	<br />
	<strong>What is the status of human resource in the pharmaceutical sector? <br />
	</strong><br />
	<br />
	In the last few years, pharmaceutical sector has been witnessing a growth in the quantity of trained manpower. The existing four universities of our country have been producing manpower for this sector. Kathmandu University (KU) has been operating classes of pharmacy at the Bachelor, Masters and the Doctorate levels. Tribhuvan University (TU) also runs a bachelor level programme while Purbanchal Univeristy (PU) has given affiliation to about 19 colleges to operate pharmacy classes. Similarly, Pokhara University also has a Bachelor of Pharmacy programme. So, around 500 students graduate in this sector annually. <br />
	<br />
	<br />
	<strong>Where do these graduates get job placement? <br />
	</strong><br />
	<br />
	A large number of students with Bachelor degree in pharmacy open their own pharmacies while some others work in pharmaceutical factories, laboratories and hospitals. A few of them pursue a teaching career but most graduates from the Institute of Medicine (IOM) and Kathmandu University go abroad in search of greener pastures. The flow of application for establishing pharmaceutical factories was high a few years back but the present political situation has been a hindrance in establishing new factories. Therefore, the graduates find the overseas market better for greater exposure. If the country could emerge from the present political turmoil, they too can find employment opportunities in their own country. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-10-10',
			'keywords' => '',
			'description' => 'Nepal’s pharmaceutical expense is at par with other South Asian countries, thanks to the increase in the number of pharmaceutical companies and their production. In 2008, the total per capita pharmaceutical expenses was US$ 6.96 while the total amount of pharmaceutical expenses stood at Rs 13.09 billion in Nepal',
			'sortorder' => '558',
			'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' => '659',
			'article_category_id' => '52',
			'title' => 'Tunnel To Prosperity',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<br />
	<strong><img alt="From the editor" border="1" height="262" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/editoiral.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	The commercial viability of Kathmandu-Kulekhani-Hetauda road tunnel is unquestionably attractive given the traffic pressure it is likely to have. <br />
	</strong><br />
	<br />
	Nepal Infrastructure Development Company, a private sector initiative led by Immediate Past President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has shouldered the task of opening up the Kathmandu-Kulekhani-Hetauda road tunnel. This tunnel would substantially reduce the length of the road connecting Kathmandu with Hetauda to 50 km. <br />
	<br />
	<br />
	Fully functional roads that now connect Kathmandu with Hetauda are much longer. The most used Kathmandu- Mugling-Narayanghat-Hetauda road’s length is 224 kilometers (kms) while the largely discarded Tribhuvan Highway is 133 kms. The proposed fast track will be about 80 kms long and would open at a point of some 20 kms east of the main town of Hetauda. However, the distance with this tunnel would be only about 50 kms and the total travel time from Kathmandu to Hetauda will reduce to barely one hour. The pace of progress in the work to construct the tunnel has been more than impressive; demonstrating the advantage that a private sector led project can have even in infrastructure development aspect. The Company has also been a first test case of much talked about Public-Private Partnership and serves as the actual implementation of BOOT (Build, Operate, Own, and Transfer) model through a project entirely financed domestically. This also sets an example of how a large sized investment of about Rs 20 billion for this project alone could be generated within the country if a viable project is chosen and all users and stakeholders are made effective owners of the project. <br />
	<br />
	<br />
	Since the company got license in the third week of May 2012 from the government, it has created a tight timeline to complete the Detailed Project Report (DPR) by the end of November. The commercial viability of the tunnel is unquestionably attractive given the traffic pressure it is likely to have. This model also constitutes a rationale that the carrying capacity of the tunnel should also be fixed by the research on existing and potential increase in traffic flow between Hetauda and Kathmandu. <br />
	<br />
	<br />
	Most importantly, without upgrading the total stretch of the Balkhu-Pharping- Kulekhani-Hetauda road, only the proposed tunnel of mere three-kilometer length is unlikely to give any substantial benefit to the national economy and return to the investors. Had the entire road length been part of this project, it would only have delivered results as aspired. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-10-10',
			'keywords' => '',
			'description' => 'Nepal Infrastructure Development Company, a private sector initiative led by Immediate Past President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has shouldered the task of opening up the Kathmandu-Kulekhani-Hetauda road tunnel. This tunnel would substantially reduce the length of the road connecting Kathmandu with Hetauda to 50 km.',
			'sortorder' => '557',
			'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) 6 => array(
		'Article' => array(
			'id' => '658',
			'article_category_id' => '60',
			'title' => 'Etihad Buys Stakes In Virgin Australia',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="edihad" border="1" height="155" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/etihad.jpg" vspace="5" width="326" /><br />
	<br />
	<br />
	Etihad Airways, the national airline of the United Arab Emirates, has acquired a 3.96 per cent stake in Virgin Australia Holdings. According to a press statement, the stake has been built over recent weeks, through purchases in the open market. <br />
	<br />
	<br />
	The press statement reads, “Etihad Airways believes that this equity investment in Virgin Australia’s domestic operations significantly strengthens the 10-year strategic partnership forged by the two carriers in August 2010. It will enrich the commercial benefits which the alliance already provides for both airlines, as well as increasing the benefits to Australian consumers and visitors to Australia.” <br />
	<br />
	<br />
	Together, Etihad Airways and Virgin Australia operate 24 flights a week between Abu Dhabi and Australia and passengers have access to a combined network of more than 150 destinations, says the statement. Etihad Airways began flying to Australia in March 2007 when it launched services to Sydney. Melbourne and Brisbane were quickly added thereafter. Nearly 2.2 million passengers have been carried between Abu Dhabi and these three cities in the last five years. <br />
	 </p>',
			'published' => true,
			'created' => '2012-08-13',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Etihad Airways, the national airline of the United Arab Emirates, has acquired a 3.96 per cent stake in Virgin Australia Holdings. According to a press statement, the stake has been built over recent weeks, through purchases in the open market.',
			'sortorder' => '556',
			'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) 7 => array(
		'Article' => array(
			'id' => '657',
			'article_category_id' => '60',
			'title' => 'Qatar Airways CEO Al Baker On IATA Board',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="qatar" border="1" height="129" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/qatar1.jpg" vspace="10" width="400" /><br />
	<br />
	<strong>Qatar Airways CEO Akbar Al Baker has been voted onto IATA, the Board of Governors of the global aviation industry body. <br />
	</strong></p>
<p>
	 </p>
<p>
	Qatar Airways Chief Executive Officer Akbar Al Baker has been voted onto the Board of Governors of the global aviation industry body, International Air Transport Association (IATA). Al Baker was selected by fellow airline executives attending IATA’s annual World Air Transport Summit in Beijing this week. <br />
	<br />
	<br />
	His is a newlycreated position to increase representation for Middle East carriers on the revamped 10-member IATA board. Qatar Airways has also announced an engaging social media photo contest titled ‘Reflections’. Through this contest, the airline is giving away attractive prizes – Business and Economy Class air tickets and a total of 1.6 million Privilege Club Qmiles. The airline is inviting up to eight photos under the categories namely – Vibrant Cultures, Magnificent Cities, Breathtaking Nature and Exciting Journeys. <br />
	<br />
	<img align="left" alt="qatar" border="1" height="227" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/qatar(3).jpg" style="width: 224px; height: 227px;margin:10px;padding:10px;" vspace="10" width="224" />“Professional and amateur photography enthusiasts may upload photos, share them across their social network and invite support from their friends, family and followers in the form of votes. They can also view, vote on, and share photos submitted by other contestants to accumulate points. Each point they thus earn converts into a lucky draw entry,” reads the press release. Prizes include 10 Business and 50 Economy Class tickets. Qatar Airways Privilege Club programme is offering a mammoth 1.6 million Qmiles to be shared among the winners. <br />
	<br />
	<br />
	Qatar Airways has also enhanced its operations with the acquisition of comprehensive aircraft recovery equipment – the first airline in the world to own the complete state-ofthe- art kit. There are just 11 complete kits globally, but parts within each kit are owned separately by individual airlines and airports worldwide. At an investment of US$3.2 million, the equipment enables the airline’s Doha hub to be capable of recovering equipment parts of any aircraft type following an incident which renders an aircraft non operational. <br />
	<br />
	<br />
	In the span of just two weeks, Qatar Airways has expanded passenger services to Iraq with the launch of its second destination in the country –the capital city of Baghdad. The Doha-based airline is operating four-flightsa- week non-stop on the Baghdad route. The move came just two weeks after Qatar Airways launched flights, also fourtimes- a-week, to the northern Iraqi city of Erbil. <br />
	 </p>',
			'published' => true,
			'created' => '2012-08-13',
			'modified' => '2012-12-18',
			'keywords' => '',
			'description' => 'Qatar Airways CEO Akbar Al Baker has been voted onto IATA, the Board of Governors of the global aviation industry body.',
			'sortorder' => '555',
			'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) 8 => array(
		'Article' => array(
			'id' => '655',
			'article_category_id' => '60',
			'title' => 'Oman Air Begins  Muscat-Tehran Service',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p class="MsoNormal">
	<img alt="oman airways" border="1" height="167" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/oman.jpg" vspace="5" width="466" /><br />
	<br />
	<br />
	<span style="font-size:24.0pt;line-height:115%;font-family:
">&nbsp;</span></p>
<p class="MsoNormal">
	<strong><span mso-bidi-font-family:="" style="font-size:
12.0pt;font-family:">The airline recently introduced complete cell phone and</span> <span style="font-size:12.0pt;line-height:115%;font-family:
">Wi-Fi connectivity aboard Oman Air’s Airbus A330 aircraft.</span></strong></p>
<p class="MsoNormal">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal;">
	<strong><span style="font-size: 24pt; line-height: 115%; font-family: ">&nbsp;</span></strong><br />
	<span mso-bidi-font-family:="" style="font-size:
41.0pt;font-family:">O</span><span style="font-size: 10pt;">man Air is set to launch a new daily service between Muscat and the Iranian capital Tehran from September 1. Flights will depart Muscat for Tehran at <br />
	200hrs (3 days per week) and 0930hrs (4 days per week) and return from Tehran at 0710hrs (3 days per week) and 1340hrs (4 days per week) - all times local - offering good&nbsp; connections to onward destinations within the Oman Air’s network. <br />
	</span></p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal;">
	<span style="font-size: 10pt;">According to the company’s press statement, the new Muscat-Tehran route will be operated using Oman Air’s new Embraer 175 regional jets, which is said to offer superb levels of comfort in both Business and Economy Classes. “The addition of the new service to Tehran continues the rapid growth of Oman Air over the last 30 months,” says the company.&nbsp; <br />
	</span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
normal;mso-layout-grid-align:none;text-autospace:none">
	<span style="font-size:
10.0pt;font-family:"><br />
	</span></p>
<p class="MsoNormal">
	<span style="font-size:
10.0pt;font-family:">The airline has also recently introduced a range of new products and services, including the complete cell phone and Wi-Fi connectivity aboard Oman Air’s Airbus A330 aircraft.The statement further claims, “Over the same period, revenues and passenger numbers have increased dramatically, with customers showing their approval of the airline’s combination of quality and value by not only booking further flights, but also voting for Oman Air in a series of awards.” Oman Air has bagged the ‘Service Excellence, Middle East’ and ‘Best Business Class Seat in the World’ prizes at the World Airline Awards 2011 organised by Skytrax, as well as the 2012 Business Destinations Travel Award for ‘Best Business Class </span><span style="font-size:10.0pt;line-height:115%;font-family:
">Airline, Middle East’.<br />
	<br />
	</span></p>
<p>
	 </p>',
			'published' => true,
			'created' => '2012-08-13',
			'modified' => '2012-08-13',
			'keywords' => '',
			'description' => 'The airline recently introduced complete cell phone and Wi-Fi connectivity aboard Oman Air’s Airbus A330 aircraft.',
			'sortorder' => '554',
			'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) 9 => array(
		'Article' => array(
			'id' => '654',
			'article_category_id' => '31',
			'title' => '‘A Number Of Nepali Banks Are Interested In IS Audits’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<br />
	<img alt="visiting business People" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/julyvisitingbusinesspeople(1).jpg" style="width: 195px; height: 273px;" vspace="5" /><br />
	<strong><br />
	Rajesh Deo is a Security Analyst in the Technical Assessment Team at NII Consulting, a well-established provider of information security services and products, based in Mumbai, India. <br />
	</strong><br />
	<br />
	He specialises on conducting Security Audits, Vulnerability Assessment and Penetration Testing for NII’s premier clients. Deo holds Certified Professional Hacker (CPH), Certified Professional Forensic Analyst (CPFA) and Certified Information Security Professional (CISP) certificates from the Institute of Information Security, the training wing of Network Intelligence India Pvt Ltd. He was recently in Kathmandu to participate in a security awareness workshop. The workshop was focused on general properties of information security, its nitty-gritty, demonstrations of security network tools and Information Security Auditing. In an interview with New Business Age, Deo talked about various issues related to security audits. Excerpts: <br />
	<br />
	<strong><br />
	What brings you to Nepal this time? <br />
	</strong><br />
	<br />
	I am here to participate in the security awareness workshop. We will be conducting general introduction to information security and IT security. I hope this will be beneficial to the business community at large in Nepal because almost all sorts of businesses today require computing system in one way or another. So, it becomes important to have a security system so that there is no infiltration into the computer system that will misuse valuable data and stored information. <br />
	<br />
	<strong><br />
	What is the difference between IT security and information security? </strong><br />
	<br />
	<br />
	IT security is a specific area that targets computer system whereas information security encompasses everything. Information could be a regular paper, or data or any other product a company may develop and all of that becomes part of information security. So, when you talk of information security audits, it also audits business growth. <br />
	<br />
	<strong><br />
	What are the products and services NII is currently offering? </strong><br />
	<br />
	<br />
	NII is primarily into information security consultancy. We also have a product business with our sister concern called Institute of Information Security through which we do a lot of trainings. On the product side, we provide product support for products such as antivirus, anti-spam solutions, firewall products, data leakage prevention solutions and source code auditing – a unique area we specialise on. We are starting a new area where we are going to analyse mobile applications. We are planning to analyse java applications on an android platform. <br />
	<strong><br />
	<br />
	Is there any difference in the extent of vulnerabilities faced by the corporate sector in the South Asia region when compared to that of western developed countries? </strong><br />
	<br />
	<br />
	I don’t think there are any specific differences. We face the same challenges that our western counterparts are going to face or have already faced. The difference is in the sense that the western counterparts already have information system for a longer period of time. So, their approach to audit system is more matured. Having said that, we actually have the benefit of having that knowledge ahead of it and there could be specific challenges in terms of the process because our process is different than their processes. Auditing the security system and making sure that they are fraud proof and security around them is well built, is the important part. <br />
	<br />
	<strong><br />
	With the invention of new technology and security systems, newer forms of threats are coming along. How challenging has it been to maintain security in the present situation? <br />
	<br />
	</strong><br />
	Mobile threats are becoming a major arena. There is significant penetration of mobile computing that is going on currently in the South Asia region. A lot of people want to operate their bank accounts through their mobile phones so it becomes an attractive target for frauds. It is important to consider that area as the emerging factor. Basically, all mobile devices – android based devices, iOS based devices and tablets – are coming into extensive use not just on a personal level but also in business. Companies allow you to bring your own device but they want to make sure that the company’s data you put on that device is protected as well. That is bringing new challenges on separating personal data from work data and about how to protect work data while also allowing you to maintain your personal data. Therefore, the security of these mobile devices is becoming a crucial factor. <br />
	<br />
	<strong><br />
	How do you compare the trend of maintaining security in Nepal and India? </strong><br />
	<br />
	<br />
	The challenges are more or less the same everywhere. Even in India, we are facing similar challenges you might be facing here. In some areas, threats may be more advanced than in other places. As NII, our core plans have been in the banking and we are well versed with the processes that take place in banks. That factor will be a beneficial one when we start our operations here. We are well aware of analysing security and performing audits, doing the measurements for different purposes and allowing that to have impact on your actual business so that the posture of your organisation with each audit becomes better. Security audits should not only try to make the process but also the overall way of working better. <br />
	<br />
	<strong><br />
	Security auditing seems to be the important need at present. How aware is the corporate sector in this region about it? </strong><br />
	<br />
	<br />
	IS (Information Security) audit is one of the most important pillars of a good organisation. The reason is that computers are mostly used ubiquitously in all operations. So, all your important records are kept on computer. IS audit analyses your system and try to understand the threats that exist to your business. Based on threats, we will assess the controls you have in place and given the current control, we will suggest you the ways to improve. All of these is documented and audited by checking the evidence. While doing this repeatedly through one or two audits, the overall security for sure becomes better for the risks one is facing as every organisation faces some risks to their respective business. It could be as simple as the theft or it could be as complex as somebody doing a financial fraud. At the end of the day, the goal of IS audit is to minimise the risk in different areas of the business so that it continues to function unimpeded. <br />
	<br />
	<br />
	<strong>How affordable is such system for small to medium sized businesses? </strong><br />
	<br />
	<br />
	It is difficult to comment on their affordability, however, an IS audit can be customised as per the needs of an organisation. For example, an organisation may say that it only wants one of its departments to be certified for a certain certification. In that case, it can cut away pieces and then take the piece that it so needs. Therefore, it is affordable to many organisations and actually getting a certification like ISO 27001 is quite feasible for medium to large businesses. Even small businesses can afford the same if they are working in a very niche area and are the market leader in that <br />
	<strong><br />
	<br />
	What are the prospects you see in Nepal when you would want to work here? </strong><br />
	<br />
	<br />
	There are a lot of prospects. For example, a number of banks here are interested in IS audits so it’s my guess that we will tackle that shortly. They are interested in data centres so we will also look into that. Both these areas are our core business so we would be very happy to have customers in these areas. If there are clients who want us to do specific kinds of engagements, we would be able to do that provided such requirements are under the purview of law. Banking, energy and industrial sectors are areas we are currently looking at right now. <br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Rajesh Deo is a Security Analyst in the Technical Assessment Team at NII Consulting, a well-established provider of information security services and products, based in Mumbai, India.',
			'sortorder' => '553',
			'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) 10 => array(
		'Article' => array(
			'id' => '652',
			'article_category_id' => '38',
			'title' => 'ISO & Management System Certification',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong><img alt="julymanagement" border="1" height="146" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/july11management.jpg" vspace="5" width="300" /><br />
	<br />
	<br />
	</strong><br />
	The primary aim of the Quality Management System certification is to ensure consistent quality product and customer satisfaction simultaneously to fulfill the statutory and regulatory requirements with respect to the products and services ISO (International Organization for Standardization) is a nongovernmental organization whose main functions are to formulate, revise, adopt and update various standards. These standards may be applicable for all the member countries of the world. Its head office is in Geneva, Switzerland and around 165 countries are its members. Nepal Bureau of Standards &amp; Metrology represents the membership of ISO from Nepal. ISO has formulated more than 24,000 standards which include basic standards, product standards, test method standards and management system standards. <br />
	 </p>
<p>
	<strong><img alt="ISO Management" border="1" height="121" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/july_management.jpg" vspace="5" width="400" /></strong></p>
<p>
	 </p>
<p>
	In the management field, ISO has formulated Quality Management System standards (ISO9000 series), Environmental Management System standards (ISO14001-2004), Food Safety Management System standards (ISO22000: 2005) etc. ISO does not do any job with respect to certification and such activities are carried out by different certification bodies. These certification bodies are accredited from accreditation bodies. One certification body may have the accreditation from one or more accreditation bodies. There is one accreditation body named NABCB in India. There are hundreds of certification bodies under the umbrella of one accreditation body and these bodies are responsible to their accreditation bodies. <br />
	<br />
	<br />
	If any weaknesses are found on the part of certification bodies while awarding management system certificates like ISO9001-2008, the respective accreditation bodies take action against those certification bodies. The licence of certification bodies can even be cancelled from accreditation bodies in case of severe failure. The ISO does not have anything to do with this. These accreditation bodies are under the umbrella of International Accreditation Forum (IAF) that conforms to the guidelines developed by the ISO. Series of Quality Management System standards i.e. ISO9000 series was formulated by the ISO for the first time in 1987 with ISO9000, ISO9001, ISO9002, ISO9003, and ISO9004 with many others in this series. In this series, the certifiable standards were ISO9001, ISO9002 and ISO9003.This series was revised first in 1994 with little amendments, second time in 2000 with the remarkable revision by merging all three certifiable standards in one i.e. ISO9001-2000. The structure and some of the requirements have been changed and added during this time. There is no provision of ISO9002 and ISO9003 after this period. The third revision was made in 2008 with some revision including the control of outsourced process. The ISO 9001-2008 minutely looks at whether consistent quality products are produced and the overall management system of the organisation are met at the highest degree during organisational operation. Those companies meeting the requirements are awarded with the ISO 9001:2008 certificate by the certification bodies. <br />
	<br />
	<br />
	The primary aim of the Quality Management System certification is to ensure consistent quality product and customer satisfaction simultaneously to fulfill the statutory and regulatory requirements with respect to the products and services. The requirements of consumers are taken as the input and the organisation adds values to the requirement through different processes that eventually produces a product that has the capacity to satisfy customers. Quality Management System Requirement i.e. ISO9001- 2008 certification is not a medal of honour. However, it gives organisations the potential to become more cost effective and efficient. Similarly, it arms organisations with a powerful competitive tool that helps ensure consistent quality products and enhancement of customer satisfaction. <br />
	<br />
	<br />
	A company with well maintained and qualitative managerial practices is expected to produce quality goods and services. The ultimate goal of the certification is to ensure consistent quality products used or consumed by consumers that lead to ultimate customer satisfaction. The company may be certified for its Quality Management System, Environmental Management System, Food Safety Management System (in case of food industry only), Information Security Management System or any other management system standards developed by the ISO. Among these standards, Quality Management System Standard i.e. ISO9001-2008 is the most popular all over the world. It is a generic standard and is applicable to all types of organizations regardless of their size, nature of product and processes. Till the end of 2011, almost 1.2 million companies have been certified with ISO9001-2008 and almost 250,000 companies with ISO14001-2004 around the globe. In the context of Nepal, approximately 600 organizations have been certified with ISO9001-2008, 30 with ISO 14001-2004, 15 with ISO 22000-2005, and a very little number with Occupational Health and Safety Management System, Social Accountability. <br />
	<br />
	<br />
	There is no organization in Nepal that maintains data on the number of ISO management system standard certified companies in the country. The validity of the certificate is three years and there is surveillance audit every 9-12 months. In our context, some companies are missing the surveillance audit and in worst cases, a few are publishing advertisements even after the expiry of the certificate. So, the above mentioned number is only an approximation. Among them, a handful of companies have not renewed their standard certificates. <br />
	<br />
	<br />
	If a company is found misusing the expired certificate, the certification body may take legal actions upon receiving complaints. There is no legal authority in the country to look after these complaints even if some certified organization or certification bodies are indulging in malpractices. Monitoring is sorely missing in Nepal. There have been cases of awarding ISO management system certificates in the bordering areas where the certificate was given to those companies that do not comply with many of the requirements. In India, the accreditation body NABCB has brought a good change in this field by taking action against certification bodies whose performance is very poor. <br />
	<br />
	<br />
	It is the need of the time to establish one accreditation board in Nepal which can look after all types of Management System Certification bodies including laboratories accreditation. Around a decade ago, Nepali companies had to rely upon consultancies from India and third countries. However, some certification bodies have established their branches in Nepal at present while some others are operating directly in the country. The benefits of having the branches set up in Nepal are numerous on the part of revenue collection for the government and easy flow of information to stakeholders. <br />
	<br />
	<br />
	In conclusion, the management system certifications have brought positive improvements in many organizations even during adverse conditions such as political instability, power shortage, labour unrest etc although there is a lot of space for improvement in the consulting, certification and regulatory parts from the government side. <br />
	<br />
	<br />
	Bhandari is the Director of Quality and Environment Management Services Pvt Ltd and ISO 9001:2008 certified auditor. He can be reached via email at bhandaripomraj@ yahoo.com <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'The primary aim of the Quality Management System certification is to ensure consistent quality product and customer satisfaction simultaneously to fulfill the statutory and regulatory requirements with respect to the products and services ISO (International Organization for Standardization) is a nongovernmental organization whose main functions are to formulate, revise, adopt and update various standards. These standards may be applicable for all the member countries of the world. Its head office is in Geneva, Switzerland and around 165 countries are its members. Nepal Bureau of Standards & Metrology represents the membership of ISO from Nepal. ISO has formulated more than 24,000 standards which include basic standards, product standards, test method standards and management system standards.',
			'sortorder' => '552',
			'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) 11 => array(
		'Article' => array(
			'id' => '651',
			'article_category_id' => '39',
			'title' => 'Arun Valley HDC : For Rural Electrification',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="corporate focus" border="1" height="285" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/julycorporatefocus.jpg" vspace="5" width="400" /><br />
	<br />
	<strong>“Piluwa Khola Small Hydropower Project is an exemplary hydropower project developed by the private sector.” </strong><br />
	<br />
	<img alt="ramesh neupane" border="1" height="230" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/corporateimages.jpg" vspace="5" width="200" /><br />
	<br />
	<strong>RAMESH NEUPANE <br />
	Managing Director, AVHDC </strong><br />
	<br />
	<br />
	<br />
	“Domestic capital and technology are sufficient to rescue the country from the present energy crisis,” Ramesh Neupane, Managing Director of Arun Valley Hydropower Development Company (AVHDC) asserts. The rationale for this claim is: his company has built a 3-MW Piluwa Khola Small Hydropower Project in Sankhuwasabha district within 36 months. Out of the total 75, there are 40 districts in Nepal suitable and feasible for electricity generation. If a 5-MW plant is established in each of these districts, about 200-MW of energy will be added to the national grid within three years. When private sector adds 200 MW of power every three years, it is very possible that the same force can liberate Nepal from the energy crisis within a short period of time. <br />
	<br />
	According to Neupane, such a target can be achieved only if the government motivates the private sector. He underscored six points on making hydropower a centre of attraction for investment. First, the government should extend the license period from existing 35 years to at least 50 years for hydropower projects over 5 MW while the projects below it should be allowed to own the project for a lifetime. Second, Nepal Electricity Authority (NEA) must amend and increase electricity purchase rate in line with the inflation rate. “Price of electricity should be determined on the basis of demand and supply. NEA should increase the electricity tariff to the customers and with this effect, should also provide reasonable price to hydropower project developers,” he said. Third, the government should exempt VAT to hydropower projects. Investment in hydropower projects should be declared as tax free business till the country does not have sufficient power. This will help to attract investment into this sector. Fourth, Hydropower Finance and Development company of the government should be activated and provide long term loans on subsidised rates to the projects. Also, the capital market has to be liberal to raise funds from potential Nepali investors by issuing shares and debentures. Foreign investors should be attracted to invest in hydropower projects and allowed to trade shares in Nepal’s stock market. Fifth, the government should provide security to all projects. <br />
	<br />
	The cost of the security staffs has to be borne by the government and some field allowances are to be paid by the developers. Lastly, the government should build high voltage transmission lines from North to South to transmit energy generated in the Northern region to the Southern market of Nepal. Private sector investment in BT and/ or BOT model has to be allowed and this work should get higher priority. Additionally, Nepali energy system has to be connected with the Indian system so that energy can be imported when there is shortage and supplied when there is a surplus. Therefore, the construction of Nepal-India Cross Border Transmission Line is the urgent demand of the nation. <br />
	<br />
	In putting forward these constructive suggestions, Neupane speaks of his company’s experience as the pioneer company to introduce the concept of developing hydropower projects from the private investment in Nepal. In 1997, when the entire country was in the grip of Maoist insurgency, a group of people dared to establish Arun Valley Hydropower Development Company believing that it is possible for the private sector to build capital intensive projects such as hydropower provided there is a favourable environment, laws and policies for investment. The objective behind the establishment of Arun Valley was to construct, develop and operate small hydropower projects utilising domestic resources, technology and capital. <br />
	<br />
	When they planned to embark on their first project - Piluwa Khola Small Hydropower Project - they not only had to face difficulty to get the government’s support but also to fetch finance for it. When the AVHDC team approached the then Minister for Water Resources Sailaja Acharya with the concept, she expressed her surprise over the idea of a private sector company developing hydropower projects. But, impressed with their innovative concept, she pleaded help in every step of their project development. Their follow-ups in the Ministry of Water Resources bore fruits when NEA started to sign Power Purchase Agreement (PPA) with the private power developers. <br />
	<br />
	The team got a survey license from the Department of Electricity Development (DoED) of NEA to conduct feasibility study of Piluwa Khola Small Hydropower Project in Sankhuwasabha district. After completion of the survey, they applied for PPA. Minister Acharya helped them in getting a rate of Rs 3.0 for the wet season and Rs 4.25 for the dry season with an escalation of 6 percent for a period of five years. The escalation was supposed to be revised after five years but has not taken place till date, said Neupane. At that time, another setback was to find loan capital for the project. The project was planned with 30 per cent equity of the company and arranging 70 per cent loan from banks and financial institutions (BFIs). “As hydropower projects were the new investment area for the Nepali commercial banks, they were not ready to provide us loan in the initial phase,” said Neupane. Most of the BFIs doubted whether a private company can actually build and complete a hydropower project and will be able to pay back the loan amount. Finally, Manoj Goyal, the then CEO of the Bank of Kathmandu (BoK) took the risk and the first project of the company was financed and completed within the targeted time frame of 36 months. The project construction work was started in February 2001 and was completed in June 2003 while commercial operation started from August 2003. Arun Valley now has its own land and office building at Milan Chowk of Baneshwor and is listed in Nepal Stock Exchange.<br />
	<br />
	“The share price of this company ranges between Rs 300 and Rs 400 and the company claims that the market price of an Arun Valley Hydropower Company share will not be less than Rs 1000 upon the completion of Kabeli B1 Hydropower Project. “Piluwa Khola Small Hydropower Project is an exemplary hydropower project developed by the private sector,” argues Neupane. The company has been regularly distributing dividends to the shareholders of the company for the last seven years. “Investors have already got the return of their initial investment on the project. What they are getting now is their bonus,” shares Neupane. The second project of AVHDC is Kabeli-B1 Hydroelectric Project on Kabeli River flowing through the border of Taplejung and Panchthar districts. The project has completed the detailed feasibility study. The run-of-river project with an installed capacity of 25 MW, will sign PPA with the NEA within mid July. “The total project cost is estimated to be Rs 3,500 million. Of this total investment, 70 percent (Rs 2,450 million) will be raised from bank loan and the remaining Rs 1,050 million from the equity of share holders,” said Neupane. The company will issue rights shares to its existing shareholders to finance this project. <br />
	<br />
	A new company named Arun Kabeli Power Limited has been established as Arun Valley’s sister company to look after this project. “We have acquired 50 ropanis of land for the project and will be floating 39 per cent of the project company’s shares to the strategic partners in the beginning of next fiscal year,” said Neupane. Arun Valley Hydropower Development Company Limited will hold 51 per cent share of the project while the local people will have the opportunity to invest up to 10 per cent of the equity investment in this project. <br />
	<br />
	Lower Pheme Khola Small Hydropower Project is the second under construction project of the company located in the Mechi corridor. The project with an estimated cost of Rs 436 million has also reached the stage of PPA signing. “We will begin construction work immediately after signing the PPA,” said Neupane. <br />
	<br />
	The third project under development, Upper Piluwa Khola Small Hydropower Project, is being developed by Upper Piluwa Khola Hydropower Company Limited. AVHDC has the majority shares of this company. The project will be developed by setting-up a diversion weir from five kilometre up-stream of existing Piluwa Khola Small Hydropower Project. The project with an installed capacity of 9.6 MW has also reached the stage of PPA signing. Talking about the uniqueness of his company, Neupane shares that his company has more than 22,000 big and small shareholders. The company is in favour of mobilizing large number of people as investors in hydropower projects. The size of investment is as low as Rs 100,000. The company strives to keep the project construction costs low, complete the projects on time and distribute dividends to shareholders. Arun Valley is committed to utilise domestic capital, resources and technology to the optimum level and give relief to the country from prolonged hours of load-shedding even during the monsoon. “We have bid goodbye to load shedding in Gulmi and Sankhuwasabha districts. It is our vision now to lift the entire country from the existing energy crisis,” shares Neupane.<br />
	<br />
	It is his understanding that entrepreneurship, dedication and hardworking makes any project a success. “The technology for generating power from the running mountain water is well proven. We simply follow the art of technology,” he said. Neupane supports the idea of Foreign Direct Investment (FDI) to cash Nepal’s optimum potential in hydropower sector. He believes that the present political instability is the main impediment in attracting FDI in Nepal. “The first thing foreign investors consider is the risk involved in their investment. To minimise the risk, the government should sign a Power Development Agreement (PDA) with all the big and small project developers as well as local and foreign investors,” said Neupane. According to him, FDI will increase if the government requests foreign investors to invest in Nepal by agreeing to guarantee the security of their investments. The company also plans to attract new investors to invest in its new power projects namely Kable B-1 (25 MW), Upper Piluwa Khola (9.6 MW) and Lower Pheme Khola (3.5MW). <br />
	<br />
	<br />
	<strong>Swot Analysis <br />
	<br />
	<br />
	STRENGTHS </strong><br />
	<br />
	<br />
	• Motivated staffs <br />
	<br />
	• Stability of the company <br />
	<br />
	• Loan free company <br />
	<br />
	• Listed in the Nepal Stock exchange <br />
	<br />
	<br />
	<strong><br />
	WEAKNESSES </strong><br />
	<br />
	<br />
	• Employee turnover <br />
	<br />
	• Difference of thought between developers <br />
	<br />
	<br />
	<strong>OPPORTUNITIES <br />
	</strong><br />
	<br />
	• Developing partnership with local government <br />
	<br />
	• Developing projects with foreign investors <br />
	<br />
	<br />
	<strong>THREATS </strong><br />
	<br />
	• Unhealthy competition <br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-09-17',
			'keywords' => '',
			'description' => '“Domestic capital and technology are sufficient to rescue the country from the present energy crisis,” Ramesh Neupane, Managing Director of Arun Valley Hydropower Development Company (AVHDC) asserts. The rationale for this claim is: his company has built a 3-MW Piluwa Khola Small Hydropower Project in Sankhuwasabha district within 36 months. Out of the total 75, there are 40 districts in Nepal suitable and feasible for electricity generation. If a 5-MW plant is established in each of these districts, about 200-MW of energy will be added to the national grid within three years. When private sector adds 200 MW of power every three years, it is very possible that the same force can liberate Nepal from the energy crisis within a short period of time.',
			'sortorder' => '551',
			'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) 12 => array(
		'Article' => array(
			'id' => '650',
			'article_category_id' => '40',
			'title' => 'Open Skies Of Nepal',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Pinaki Roy <br />
	<br />
	</strong><br />
	<img alt="coverstory july" border="1" height="217" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/coverstory(1).jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	The flow of international passengers in the first quarter of 2012 has been impressive enough to raise optimism among the concerned stakeholders. The statistics between January and March 2012 is an indication that international air service and passenger movement to and from Nepal is set to register a significant increase this year compared to 2011. A total of 717,182 international passengers (see table) availed air services via Tribhuvan International Airport (TIA) – the only international airport of Nepal – in the first three months of 2012, says Raj Bahadur Maharjan, Director at TIA’s Flight Approval Department. <br />
	<br />
	<br />
	There has been an increase of 84,459 passengers when compared to the first quarter of 2011, thereby registering a growth of 13.35 per cent over the same period of the previous year. Monetarily speaking, the total annual international flight service business in Nepal is worth an estiamted Rs 80 billion. <br />
	<br />
	<br />
	Ratish Chandra Lal Suman, General Manager at TIA, says, “The number of passengers has increased in the first quarter of this year also because of new airlines coming into operation and providing added air services.” He attributes the increment both to the increase in inbound tourists and the outbound migrant workers to different countries. Even though GMG Airlines towards the end of 2011 and Kingfisher Airlines in February 2012 ceased to operate in Nepal, their absence was promptly compensated by Indigo (October 2011) and RAK Airways (February 2012). <br />
	<br />
	<br />
	The number of flights that served these passengers was 5,693 (up by 9.69 per cent from 5,190 flights during the same period last year). While 2,846 flights made outbound journeys, the number of flights that landed at the TIA stood at 2,847. A total of 368,934 passengers flew out of Nepal while another 348,248 landed in the country from January to March this year, a growth of 11.48 per cent and 15.40 per cent respectively when compared to the same period of 2011. In the first quarter of the previous year, 330,954 passengers took outbound flights while another 301,769 passengers entered Nepal via inbound flights making a total of 632,723 passengers who availed international air services from January to March 2011. <br />
	<br />
	<br />
	This growth is certainly encouraging coming at a time when the International Air Transport Association (IATA) left this year’s global airline profit forecast unchanged at $3 billion, or 0.5 per cent of industry revenues. At a summit of airline chiefs being held this year in Beijing, this stable outlook masks a widening gap between regions with “only North and South America set to improve and the rest of the world seeing reduced profitability.” <br />
	<br />
	<br />
	<strong>The Year Gone By <br />
	</strong><br />
	<br />
	International air passengers flying via the Nepali sky crossed 2.7 million for the first time in 2011. These passengers travelled via Nepal with 28 international airlines operating in Nepal last year, according to Maharjan. He said that additional airlines such as IndiGo, added frequency of flights and passenger occupancy increased the number of air passengers using the Nepali route. The year 2011 saw 2.7 million international passengers flying out and landing in the country on board 22,791 flights. A total of 28 airlines flew 2,700,027 passengers (see table) for the year, says Maharjan. This was an increase of 10.81 per cent in comparison to 2010 when 2,436,558 passengers availed international air services in Nepal. <br />
	<br />
	<br />
	While 1,407,512 passengers flew out of the country, the passengers entering the country numbered 1,292,515. A total of 11,393 flights departed while 11,398 flights entered Nepal during the period making a total of 22,791 flights for the year. The only new airline that started operations in 2011 was Indigo. Qatar Airways carried the most number of passengers – 277,796 on 2,374 flights while Jet Airways was second with 272,560 passengers on 2,191 flights. Nepal Airlines Corporation was third with 202,041 passengers on 1,619 flights. <br />
	<br />
	<strong><br />
	Migrant Worker: The Main Market </strong><br />
	<br />
	<br />
	With more Nepalis departing for jobs abroad and increase in tourist movement, international airlines operating in Nepal have witnessed this rise in passenger movement in recent times. The airline companies claim that they are equally focusing on all the segments, which include business travellers, tourist, VFR (visiting-friends and relatives) and workers. However, it’s no secret that migrant workers comprise around 80 percent of the total passengers availing international air services in Nepal. Most of the international airlines flying to and from Nepal are more focused on manpower markets rather than the tourism markets. Of the total international flights, the airliners carry only 20 per cent tourists, observe industry analysts. <br />
	<br />
	<br />
	<strong>Contribution to Tourism </strong><br />
	<br />
	<br />
	International carriers from India accounted for the largest share of inbound tourism in Nepal in the previous year. According to TIA, Indian carriers flew around 48 per cent of all tourists visiting Nepal in 2011 – dubbed as Nepal Tourism Year (NTY). Indian travellers alone grew by 39 percent to 145,338 in 2011, a 26.67 percent share in total tourist arrivals to Nepal. As per TIA statistics, five Indian airlines—Spice Jet, Jet Airways, Air India, Jet Lite and Kingfisher—figured among the top 10 carriers bringing tourists to Nepal. The total tourist arrivals via air numbered 544,985 in 2011 that entered Nepal on board 28 international airlines. <br />
	<br />
	<br />
	Indian budget airline Spice Jet – that started flying to Nepal in October 2010 – was the largest carrier of tourists into Nepal in 2011, accounting for 15.28 percent of the arrivals. Jet Airways and Air India were the second and third largest tourist carriers respectively accounting for 12 percent and 8 percent tourist arrivals. Two legacy carriers—Thai Airways and Qatar Airways—fell in the inbound tourism rankings in 2011. While Thai’s market share shrunk to 8 percent from 11 percent in the previous year, the share of Qatar Airways slipped to 7 percent. Etihad Airways and Gulf Air, two more carriers from the Middle East, lost their slots in the top 10 list in 2011. <br />
	<br />
	<br />
	The healthy growth of Indian tourists to Nepal attracted yet another Indian private airliner Indigo Airlines that started New Delhi-Kathmandu flights in October last year making it the sixth Indian private airliner flying between Nepal and India. Currently, Air India, Jet Airways, Jet Lite, Spice Jet and Indigo fly around 130 flights a week between Kathmandu and various Indian destinations while Kingfisher Airlines has stopped flying to Nepal for the last few months. Needless to say, the increase in the number of Indian airliners flying to Kathmandu has encouraged the aviation sector in Nepal immensely and boosted the country’s tourism prospects. A total of 207,961 tourists entered Nepal via air in the first four months of 2012, a growth of 23.1 per cent over the same period last year. A total of 168,958 tourists had entered Nepal from January to April in 2011. <br />
	<br />
	<br />
	<strong>Direct Flights <br />
	</strong><br />
	<br />
	Broadly, any business or industry can be categorised either as monopoly or market-oriented. Due to the inherent nature of international air transport industry, every country enjoys certain exclusive rights, which indirectly helps them monopolise some air routes. This right, if exercised, could be of tremendous benefit to a country like Nepal. “Direct flights between Nepal and other countries can play a key role in bringing increased number of tourists into our country,” an industry insider opines. <br />
	<br />
	<br />
	For instance, none of the 27 airlines flying into Nepal have the right to operate direct long distance flights between Nepal and lucrative destinations like Europe, Japan and Australia. They can operate only connecting flights whereas Nepal gets the sole privilege of operating direct international flights from the country. As foreign travellers have no choice of direct air connectivity, air travel costs become higher while coming to Nepal. Mihin Lanka, a Sri Lanka-based airline has expressed its interest to operate direct flights between Colombo and Kathmandu. This was conveyed to Prime Minister Baburam Bhattarai by Lankan President Mahinda Rajapaksa on the sidelines of the recently concluded environmental summit in Rio de Janeiro, Brazil. Air Service Agreement (ASA) between Nepal and Sri Lanka allows Sri Lanka-based airlines to operate up to 14 flights a week in the Colombo-Kathmandu-Colombo sector. <br />
	<br />
	<br />
	<strong>State of the National Carrier </strong><br />
	<br />
	<br />
	The status of the national carrier – Nepal Airlines Corporation (NAC) – in terms of international flight operations is disappointing to say the least. Around 95 percent of the international aviation market in Nepal is in the hands of foreign air operators. “Our market share is worth less than Rs 4 billion out of the international flight service business of Rs 80 billion annually,” says NAC Spokesperson Saroj Kasaju. The market share of NAC shrank to an all-time low in 2011 in terms of tourist carriage. The national flag carrier held the 10th position with a mere 3.05 percent while it had a market share of 4.87 percent in 2010. The eroding market share of NAC, according to travel trade entrepreneurs, is due to its inability to expand its fleet while the fact remains that the prerequisite for business expansion in airline industry is acquisition of aircraft, especially for operation in the lucrative international sector. In 2001, NAC was a leading carrier accounting for 28 percent of inbound tourists. <br />
	<br />
	<br />
	With more international airlines entering the Nepali skies and NAC’s track record of flight delays, travel agencies say the national flag carrier has become the last choice among visitors. Currently, NAC operates its international flights with two ageing Boeing 757s, either one of which is usually offline due to technical glitches and periodic C-checks. The carrier now flies to only five international sectors – Dubai, Doha, Bangkok, Kuala Lumpur and Hong Kong – down from 21 destinations in 12 countries with four Boeings till 1993. The airline now plans to start flights to Damam in Saudi Arabia. It also plans to start flying to Kuala Lumpur seven-days-aweek besides launching direct flights to Doha, Qatar. <br />
	<br />
	<br />
	The corporation currently spends Rs 1.39 billion on repairs alone for the two planes – Boeing 757-9N ACA Karnali and ACB Gandaki – which it has in its ‘fleet’ right now, says Kasaju. “Out of the estimated income of Rs 4.52 billion from international flights in the current fiscal year, 23 per cent of the total amount has gone into the repairs of the two Boeings,” he adds. The cost of repairs has gone up considerably in the last five years due to the fast ageing of the two Boeings. This expense is several times more than what the private carriers spend on repairs and maintenance which is six to 10 per cent of their earnings from flights. <br />
	<br />
	<br />
	A strong and competitive national flag carrier can serve as a key vehicle of the country’s economic and tourism development. Kasaju says, “NAC has become a factory without machines due to lack of aircraft but hasn’t gone in loss yet.” He cautions though that the corporation can land in major financial trouble if aircraft is still not added to its fleet. <br />
	<br />
	<br />
	However, all is not lost as Kasaju reiterates that the corporation is still making profit thanks mainly to its ground handling business. The corporation provides such service to 23 foreign airlines that fly to Nepal. From a domestic perspective, the corporation is expected to get five units of 19-seater aircraft and three units of 56-seater aircraft from China on grants and concessional loan. The airline management is scared of an imminent demise of the company as its current basis of survival – ground handling business – is in jeopardy due to a move by the Civil Aviation Authority of Nepal (CAAN) to possibly involve the private sector and allow competition. <br />
	<br />
	<strong><br />
	Ground Handling Services at TIA </strong><br />
	<br />
	<br />
	CAAN is currently holding discussions with other government agencies and stakeholders to allow the private sector to operate ground handling services at the TIA. It informed that it may soon allow private firms to operate ground handling services during the night time. Currently, NAC that provides ground handling services to almost all international airlines currently earns Rs 2 billion a year of which 10 percent is paid to CAAN as royalty. CAAN says that many international airlines and customers have complained about NAC’s ground support service. The complaints are mainly two: thefts and tampering with passengers’ luggage and higher ground handling charges of NAC in comparison with other international airports in the region. It is hopeful that the introduction of a private firm will enhance quality and manage congestion at TIA. “The Civil Aviation Authority Act 1996 and National Civil Aviation Policy 2063 state that the ground handling service should be competitive. Besides, the agreement with the corporation also does not restrict CAAN from appointing a private firm to manage ground handling services,” says Suman. He adds, “Due to NAC’s monopoly, the ground handling charges in our country are the most expensive in this region.” <br />
	<br />
	<br />
	The addition of one more ground handling service provider is expected to bring in competition and end the monopoly thereby resulting in quality service at lower service charge, adds Suman. TIA currently has the capacity to serve 8.2 million passengers a year and can serve up to 1,350 international passengers on an hourly basis. “We have not been able to serve to our total potential due to organisational inefficiencies. The number of flights out of TIA is less than half the capacity that we can accommodate,” Suman says. Meanwhile, NAC officials deny the charges and claim that the incidents of baggage theft and breakdown are minimized to internationally acceptable level. They also allege that some of these complaints are actually due to the fault of CAAN and other government agencies involved in the business such as the immigration department. According to them, some problems are due to lack of adequate infrastructure such as insufficient apron space for parking the craft which are forced to wait in the taxiway for long periods. Besides, inadequate number of boarding gates cause delays in boarding and confuse passengers on the correct conveyer belts to deliver the luggage are frequently out of order while the luggage weighing machines are not repaired on time. Insufficient number of toilets and chairs in the passenger waiting area add to passenger woes further. <br />
	<br />
	<br />
	The NAC management says that it’s not only the ground handling services that are expensive in Kathmandu. It gives examples of the fuel price and the charges that CAAN levies on account of aircraft landing, parking and navigation. The charges for CUTE used for passenger check-in too are high in Nepal than elsewhere, argue NAC executives. They point that the ground handling services in many other countries such as Thailand, UAE, Qatar, Malaysia and Hong Kong are provided by their national flag carriers either on their own or through subsidiaries. In Thailand, even the flight catering service is provided by the party that is recommended by Thai Airways, they say. <br />
	<br />
	<strong><br />
	Trans-Himalaya 2 Airspace <br />
	</strong><br />
	<br />
	Considering the increased air traffic at the TIA, CAAN is planning to operate the international airport 24 hours a day. This is expected to help in managing the increasing air traffic. Besides, it is also seeking an alternative location nearby Kathmandu for shifting the domestic airport from TIA to address the congestion. Likewise, it is also going to extend the domestic terminal building and make a separate car parking area for arriving passengers. <br />
	<br />
	<br />
	Nepal plans to ask India for the development of Trans-Himalaya 2 airspace (Hong Kong-Kunming- Guwahati-Kathmandu) connecting Southeast Asia, the Middle East and Europe in view of the increasing air traffic demand in Nepal. The route is one of the most lucrative routes for Nepal and if opened, it will be the shortest way from China and the Far East to the Middle East and Europe. The air distance from Kathmandu to Hong Kong will also be reduced. Implementation of this airspace will allow international airlines to fly over Nepali airspace, which means savings in fuel and distance for carriers flying this route and revenue for Nepal. “The airspace was discussed during Prime Minister Baburam Bhattarai’s visit to Delhi,” says Suresh Acharya, Joint Secretary at the Ministry of Culture, Tourism and Civil Aviation (MoTCA). According to him, India is positive about opening the proposed route. He adds that separate discussions need to be held with the Chinese government with regard to permission from the Chinese side for the opening of Trans-Himalaya 2 airspace. The opening of this proposed air route will have hundreds of international airlines use Nepali airspace and help the country to develop as a hub. CAAN officials add that the proposed route would be the shortest and could establish Nepal as an international transit point and result in enhanced air revenue for the country. The second international airport that the government has planned to construct in Nijgadh of Bara would be the greatest beneficiary in the event this air route comes into operation. Similarly, for aircraft entering Nepal’s air space, CAAN proposes Biratnagar (in the eastern region), Bhairahawa (in the western region) and Nepalgunj (in the mid-western region) as the three crossborder airspaces. Currently, Nepal has three incoming air routes—Simara, Kakkarbhitta from Paro in Bhutan and the Nonim air route from China. The Kathmandu-Mahendranagar-Delhi (L626) is the outgoing air route for international flights. Nepal is seeking new airspaces to ease traffic congestion, enhance information transmission, traffic regulations, emergency recovery of aircraft during accidents and automatic message switching system in its aviation sector. <br />
	<br />
	<br />
	The proposed route is more direct, safer, economical and efficient for flights between Europe, the Middle East and East Asia. These routes will reduce the congestion of westbound traffic flows across the Bay of Bengal. Experts claim that access to this international air space would give Nepal a huge opportunity to develop as a hub like India, the Maldives, Pakistan and Sri Lanka in South Asia. Maximum coverage of Nepal’s air space on long distance international flights via this proposed route could bring great benefits to the country if brought into operation <br />
	<br />
	<strong><br />
	The Way Forward </strong><br />
	<br />
	<br />
	As per the estimates of the International Civil Aviation Organisation (ICAO), an investment of US$ 100 in the air transport industry produces benefits worth US$ 325 for the economy, and 100 additional jobs in the air transport sector results in 610 new jobs across the wider economy. It further suggests that the air transport component of civil aviation accounts for more than 4.5 percent of the global GDP. As for the numbers, three carriers – AirAsia X, Malaysia Airlines and BB Airways – start operations in 2012. AirAsia X has already started operations while Malaysia Airlines and BB Airways are planning to operate international flights from September this year. It’s courtesy the competition among airlines on Kathmandu-Kuala Lumpur route as these three carriers unveiled plans to operate on the sector. The growing movement of Nepali migrant workers to and from Malaysia is one of the reasons luring airlines to fly on this sector. Statistics released by the Department of Foreign Employment shows that an average of 350 Nepali workers left for the Malaysian capital on a daily basis in the last fiscal year. While Malaysia Airlines is the national carrier of Malaysia, AirAsia X is a Malaysia-based budget carrier. ASA between Nepal and Malaysia allows Malaysian carriers to operate up to 21 flights a week. On the other hand, BB Airways is an upcoming local carrier promoted by TBI Group of Non Resident Nepalis (NRNs) in Japan which has already unveiled plans to operate scheduled flights on seven international routes including Kuala Lumpur. <br />
	<br />
	<br />
	There is an unlimited potentiality of the development of tourism and civil aviation sectors in the country. A well-equipped fullfledged international airport – where long-haul flights from Europe and America could directly land and take off – is needed for the development of the aviation and tourism sectors. In this context, a proposed fullfledged airport at Nijgadh can be an international hub for air transit and contribute substantially to the overall economy of Nepal. Nepal Investment Board (NIB) has already taken the initiative on projects related to the upgradation of TIA, and construction of a new airport in Nijgadh. It is estimated that the TIA upgrade will cost Rs 52.80 billion while the construction of the new airport in Nijgadh will cost Rs 45 billion. <br />
	<br />
	<br />
	<br />
	<br />
	<br />
	<strong>‘Gulf Air Provides Excellent Connectivity to a Large Number of Nepali Workers’ <br />
	<br />
	<br />
	<br />
	<img alt="" src="http://www.abhiyan.com.np/images/uploaded/renji-kurian-th_1343383001.jpg" /><br />
	<br />
	RENJI KURIAN THOMAS </strong> <strong><br />
	Country Manager <br />
	Gulf Air <br />
	<br />
	</strong> <br />
	<br />
	<strong>Can you share the rate of increase in passengers flying to and from Nepal over the years? <br />
	</strong> <br />
	There has been a steady growth of passengers over the years. As one of the major international airlines operating in Kathmandu, we have seen nearly a 20 per cent increase in the number of passengers in the first quarter of the year 2012. The latest report of Tribhuvan International Airport (TIA) also has our airlines figuring among the top four international airlines that have seen the strongest growth in passengers’ movement. Having started our operation in July 1998, we are now operating 12 flights between Bahrain and Kathmandu weekly. <br />
	<br />
	<br />
	<strong>How do you assess the quality of air service infrastructure in Nepal? <br />
	</strong> <br />
	The quality of air service is very good as the airport takes care of landings and take-offs for as many as 27 international airlines. However, there is always a scope for improvement with the increase in tourism traffic in Nepal. The airport has been working to improve its facilities further as such. <br />
	<br />
	<br />
	<strong>How has been the demand on the number of flights over the years? How are you managing the supply to meet the demand? <br />
	</strong> <br />
	The demand on this route is increasing steadily. By increasing our frequencies as well as operating large aircrafts periodically, we manage to accommodate more passengers. Gulf Air provides excellent connectivity to a large number of Nepali workers in the gulf region, particularly Saudi Arabia. We operate larger aircrafts as per the situation, especially when the demand is high. <br />
	<br />
	<br />
	<strong>What are your unique selling propositions? How aggressively are you marketing them? <br />
	</strong> <br />
	We have got the biggest network in the gulf region and several USPs to our credit. One of them is our schedule with excellent connectivity, for example, our split schedule of flights between Bahrain and Kathmandu offers very good travel options as it allows travelers to choose their own flight timings. In addition, Gulf Air’s seamless connectivity to Europe and the Far East via the Bahrain hub is an ideal choice for European customers travelling to Nepal or the Far East. Moreover, we are currently operating one of the youngest fleet with an average age of 5.2 years. This A320 fleet which operates between Bahrain and Kathmandu, offers ergonomically designed seats for travelers with maximum comfort, full flatbed seats on Falcon Gold class and the latest in-flight entertainment. <br />
	<br />
	Internationally, we are the first airline in the world to offer ‘Sky Hub’ that offers hi-speed broadband internet, mobile phone connectivity, live TV telecast, popular entertainment programs, sports channels and an array of movies, music and games. In addition to that, Gulf Air’s unique Sky Nanny and Sky Chef Services have received positive feedback from the customers. These services have helped us win the best ‘family friendly airline’ from US-based publications and the ‘best cabin crew’ award ranking from an IATA survey. <br />
	<br />
	<br />
	<strong>Airlines flying to Nepal are said to have very few business class seats. Is it true that airlines do not see prospects for business class market here? <br />
	</strong> <br />
	The aircrafts that we fly to Kathmandu are the same as the ones that fly on our other routes. We use a combination of narrow and wide body aircraft for flights to Kathmandu, depending on the traffic. We agree that the potentiality of business class market is not high in Nepal when compared to other regions. However, we offer 16 Falcon Gold Business class seats on our A320 fleet which has a configuration of 136 seats in total. The gold business class has full flat seats and several modern features for those who prefer stylish and luxurious travel. <br />
	<br />
	<br />
	<strong> What are your expansion plans? <br />
	</strong> <br />
	We do continuously look at the number of the passengers and market demands and decide accordingly. As said earlier, we have increased our frequencies and are also periodically operating larger aircraft to meet the seasonal and expanding market. <br />
	<br />
	<br />
	<strong>Most of the flights made to Nepal are targeting migrant workers. How sustainable is this policy? <br />
	</strong> <br />
	As mentioned in the TIA report, increased labor traffic accounts for around 80 percent of seat demand in all international airlines. All international carriers connecting to Nepal saw a robust increase due to this reason. We cater both to migrant workers and tourists. However, the majority of our traffic to Kathmandu is the migrant workforce working in the gulf countries. We foresee this trend to continue for some time to come. <br />
	<br />
	<br />
	<strong>What are your operational difficulties and facilities in Nepal? <br />
	</strong> <br />
	There are no operational difficulties except the weather of course. As you know, we are sometimes forced to divert our flights to nearby Indian airports due to unfavorable weather conditions such as dense, fog etc especially during winter. However, with our split schedule flights, we have better timings for landing in Kathmandu. <br />
	<br />
	<br />
	<strong>How are you managing your ground handling staff and crew members? <br />
	</strong> <br />
	We have Nepali speaking cabin crew in our team, who are deployed on the Kathmandu route most of the time so that our Nepali customers could feel at home. Almost all our staffs at the airport and city office are Nepalis. <br />
	<br />
	<br />
	<strong>How do you see the prospects of Nepal’s tourism sector? How is your airline contributing to it? <br />
	</strong> <br />
	Tourism is one of the main industries in Nepal. The Nepal Tourism Year 2011 was quite successful. Through International air passenger movement, Nepal grew 13.35 percent in the first three months of 2012 with high migrant workers and tourist traffic. Kathmandu is one of the major tourist destinations with thousands of foreigners visiting the country for a variety of reasons. <br />
	<br />
	The tourism sector is bound to expand as more and more people opt for unique and affordable destinations such as Nepal. We are able to connect more passengers than others to travel to Kathmandu via our Bahrain hub. The tourism campaigns or promotions by Nepali tourism authorities in the gulf countries can further help an increment in the tourist traffic to Nepal. I am proud to say that Gulf Air too has a role to play in the tourism development of Nepal as we cater to a large number of European tourists who find it convenient to fly with us. <br />
	<br />
	<br />
	<br />
	<strong>‘An International Airport at Nijgadh can help Establish Nepal as a Transit Hub’ <br />
	<br />
	<br />
	<br />
	<img alt="" src="http://www.abhiyan.com.np/images/uploaded/tri-ratna-manan_1343383130.jpg" /><br />
	<br />
	TRI RATNA MANANDHAR </strong> <strong><br />
	Director General <br />
	Civil Aviation Authority of Nepal (CAAN) <br />
	</strong> <br />
	<br />
	<strong><br />
	What is the current scenario of International flights operating in Nepal? </strong><br />
	<br />
	Earlier, we had altogether 28 operators conducting international flights. Among them, three operators namely GMG Airlines, Kingfisher Airlines and Bahrain Air postponed their flights. Simultaneously, three other operators namely BB Airways – a Nepali airliner – along with two airliners from Malaysia, Air Asia X and Malaysian national carrier Malaysia Airlines were included. Air Asia X is operating from July 3 while BB Airlines is to commence from September this year. That is to say, some airlines are withdrawing their flights while some others are commencing their operations soon. However, the numbers of operators are back to 28 as it was before. There are 33 other airlines waiting in the wings with their air service agreements (ASAs). <br />
	<br />
	<br />
	<strong>The infrastructure bottleneck is often the constraint to provide international standards services to the airlines flying to Kathmandu. What exactly is the situation? <br />
	</strong> <br />
	We must accept this fact. We are not being able to develop the infrastructure as per the growth of air traffic movements. That is why we are very often facing air traffic congestion at TIA. To address such problems, we are conducting various measures. First of all, a TIA Capacity Enhancement Project is going on with support from an ADB loan of US$ 70 million. CAAN itself is investing another US$ 30 million in the project. This US$ 100 million project will address the extension, expansion, and development of TIA which includes the civil infrastructures such as runway and taxiway extension, construction of additional parking bay etc. The development of equipment is another component that is also in our priority. These components are ATC automation and communication and navigation equipment. These tasks are part of the capacity enhancement project. We are also planning to separate domestic operators and shift them somewhere close to Kathmandu. Dhulikhel seems to be a possible location and a detailed feasibility study is being conducted for that purpose. We are looking at this alternative so that we can use the present TIA only for International operation. <br />
	<br />
	<br />
	<strong>How is CAAN addressing air traffic issues like landing and take-off, flow of flights and routes etc? <br />
	</strong> <br />
	We have some problems in the international air route and we are inviting Indian authorities to Nepal to hold discussions on this very soon. <br />
	<br />
	<br />
	<strong>How improved has the passenger handling capacity of TIA become in the recent years? <br />
	</strong> <br />
	We are continuously trying to improve our services. But I can’t say that the improvements are significant because of the limited facilities. Even the space is the same as we have been using before. Upon the completion of the ADB project, we would be able to enhance the passenger handling capacity and provide other facilities accordingly. <br />
	<br />
	<br />
	<strong>What happened to the plan of making TIA operational for 24-hours-a-day? <br />
	</strong> <br />
	We are continuously exercising to operate that way. But there are certain things to be considered like manpower planning, reliability of the radar etc which are essential in making TIA operate for 24-hours-a-day. Besides CAAN, the immigration authorities and the security establishments also need to be prepared for it. <br />
	<br />
	<br />
	<strong>What is the overall air service infrastructure situation of Nepal? <br />
	</strong> <br />
	In terms of airports and airport facilities, we (the Ministry of Culture, Tourism and Civil Aviation and CAAN) are aggressively involved in improving and increasing airport infrastructure. The project for constructing Gautam Buddha Regional International Airport at Bhairahawa is in the pipeline. The revised estimated cost for the project is US$ 77 million. Another project for a regional international airport in Pokhara is also proceeding for which China Exim bank has shown an interest to invest in. <br />
	<br />
	<br />
	<strong>How many of our airports are capable of handling international flights in terms of runways and other infrastructures in Nepal? <br />
	</strong> <br />
	Airports in Bhairahawa, Nepalgunj and Pokhara are capable for conducting cross border flights with India. They can operate in Indian cities like Lucknow, Varanasi, Delhi and Patna. As for fullfledged international operations, we only have TIA to look up to. <br />
	<br />
	<br />
	<strong>Experts say that lack of direct international flights from major tourist destinations have resulted in great loss for our tourism sector. What is CAAN doing about it? <br />
	</strong> <br />
	The entire aviation sector understands the value of direct international flights. The scenario of constructing Nijgadh International Airport has emerged due to this need. It’s been so many years that we are talking about constructing it but there is no achievement on this front so far. If the nation really wants to promote the tourism sector on a massive scale, a full-fledged international airport is a must as the present international airport (TIA) is not a full-fledged one. It has many constraints because of the terrain, runways and lack of other infrastructures. That is why it is not possible to operate long haul flights from the US and Europe. Landing a big aircraft is another impossibility given the present circumstances. If the tourists from countries in Europe and the US could travel directly to Nepal, it would have been convenient to us as well as the tourists. For instance, it takes a minimum of two stops and one has to spend more than 24 hours to travel from Europe to Kathmandu. All the pleasure and excitement is gone because the tourists feel exhausted and tired due to long flights. The travellers have to spend more hours in transit than on board the flights. <br />
	<br />
	We are unaware of the exact tourism potentiality of Nepal. The President of International Civil Aviation Organization (ICAO) visited Nepal recently. He was shocked to hear that we were able to bring only about 700,000 tourists against our target to bring in one million tourists during Nepal Tourism Year 2011. <br />
	<br />
	We will not be able to develop our tourism sector as desired if we depend entirely on TIA only. By constructing a full-fledged international airport at Nijgadh will not only enable us to operate long haul international flights but also help establish Nepal as a transit hub like Hong Kong and Bangkok. <br />
	<strong><br />
	<br />
	What do you have to say about the fifth freedom rights of international airliners operating in Nepal? </strong> <strong><br />
	</strong> <br />
	We assure such rights in the Air Service Agreement (ASA) with international operators. The recent controversy with Air Arabia on the fifth freedom rights is meaningless. As per the provision of an ASA between Nepal and UAE, it is their right to seek so. If the international operators do not get their fifth freedom rights, they cannot run their businesses. We can’t even imagine building the Nijgadh Airport leaving aside such rights. Fifth freedom rights will help develop Nepal establish itself as a transit hub. But these controversies are hardly true for some other international airlines. More than 90 per cent international airlines are enjoying fifth freedom rights, for instance, Druk air is operating a flight between Kathmandu and Bhutan via Delhi. <br />
	<br />
	<br />
	<strong>‘Dragonair is Bringing a lot of People into Nepal’ <br />
	<br />
	<br />
	<br />
	<img alt="" src="http://www.abhiyan.com.np/images/uploaded/thomas-bellamy_1343383224.jpg" /><br />
	<br />
	THOMAS BELLAMY </strong> <strong><br />
	Manager - Nepal <br />
	Hong Kong Dragon Airlines Ltd <br />
	</strong> <br />
	<br />
	<strong><br />
	Can you share the rate of increase in passengers flying to and from Nepal over the years? <br />
	<br />
	</strong> Dragon air started its operation in Nepal in 1989. The service was halted in 2001 and re-launched in 2007. We have gradually increased our frequency and now have daily flights. We have increased the aircraft size with the increase in passenger numbers. We are taking more passengers to China, Japan, Australia and the US. These are the big destinations for us. Dragonair is also bringing a lot of people into the country especially during the peak tourist season from September to April. <br />
	<br />
	<br />
	<strong>How do you assess the quality of air service infrastructure in Nepal? <br />
	</strong> <br />
	There have been some good changes at the TIA recently – for example, the new check-in desks and screens that have been installed at the international terminal. We hope for more improvements to be made in the future. It is very important to have a very strong main airport here in Kathmandu to act as a hub for inbound Nepali tourism. <br />
	<br />
	<br />
	<strong>What is the demand on the number of flights over the years? How is Dragon Air managing the supply to meet the demand? <br />
	</strong> <br />
	We have the capacity to meet the growing demands. There is enough demand to utilise the capacity and thus, we increased the frequency to a daily flight in September 2011. We are quite optimistic about Nepal and will continue to monitor such situations. From the tourism perspective, a lot depends on the stability of things here in Nepal. If Nepal can get good coverage in other countries, the travel agents and airlines will be more willing to promote Nepal and the number of passengers will increase as well. <br />
	<br />
	<br />
	<strong>How cooperative have the Nepali government institutions been in helping meet the market demands? <br />
	</strong> <br />
	I think the intentions are good. There are obviously a few constraints in Nepal, but many of these will fall off in a more stable environment. For now, we just need to continue working together to improve wherever we can and to focus on the positives. The Airlines Operating Committee which comprises airport representatives from most of the major carriers in Nepal continues to work with the relevant authorities to look for improvements wherever possible. <br />
	<br />
	<br />
	<strong>What are your unique selling points? How aggressively are you marketing them? <br />
	</strong> <br />
	One of the unique selling points of Dragonair is having Hong Kong as its hub. We have fantastic connections, and together with our sister airline Cathay Pacific, we are capable of connecting passengers to over 160 destinations worldwide. In Hong Kong, the minimum connecting time with Cathay Pacific has been reduced to 50 minutes which gives passengers more choice and convenience. There are many destinations from Hong Kong within a relatively short distance – half of the world’s population within five hours. On the long-haul side of things, we connect to New York four-times-daily. We look at the possible frequency rather than relying solely on our capacity. We want to give passengers more choice, which means provide more departure time wherever sustainable. <br />
	<br />
	Dragonair’s world-class service and quality products have long been recognised – we’ve won the Best Airline – China category for six consecutive years in the respected Skytrax passenger survey and we were also voted the “World’s Best Regional Airline” in 2010 and 2011. Dragonair’s major strength is China. We fly to 19 destinations in mainland China and operate about 400 flights a week. Adding to it, our sound safety record, well-trained and professional staff, and good on-time performance are the positive sides to focus on. <br />
	<br />
	<br />
	<strong>Airlines flying to Nepal are said to have very few business class seats. Is it true that airlines do not see prospects for business class market here? <br />
	</strong> <br />
	Asia has shown its ongoing potential and resilience in the face of the current global economic downturn. Until now, Nepal has widely been regarded as a leisure travel destination. We are optimistic that, with stability, business and industry here can grow and along with it, the demand for business travel will rise. We actually have a decent number of business class seats on our Airbus A330 aircraft, but it would of course be nice if passengers originating from Kathmandu could fill more of those seats. <br />
	<br />
	<br />
	<strong>What are your operational difficulties and privileges received in Nepal? <br />
	</strong> <br />
	The weather is always a challenge for airline operations and it is no exception here in Nepal. We have worked with the authorities and our own engineering teams to overcome the constraints we face here, so as to ensure timely operation as much as possible. This is particularly important in the context of the airport operating hours (the airport closes after midnight). The ever increasing number of tourists would definitely benefit from further improvements at the airport, and we will continue to support positive initiatives from the authorities in that direction. <br />
	<br />
	<br />
	<strong>It is said that operating in Nepal is very cheap despite having poor infrastructure. What are its advantages? <br />
	</strong> <br />
	While operational cost is one of the many factors, we look at running our business anywhere. We see Nepal more for its market potential i.e. its attractiveness as a destination and travel demand to other countries like US, Australia, Japan, Korea and of course Hong Kong and China. <br />
	<br />
	<br />
	<strong>What are your expansion plans? <br />
	</strong> <br />
	We continue to look forward to opportunities in Nepal and act accordingly in terms of available possibilities. We will increase frequency if we continue to see good growth in passenger numbers at sustainable yields. Basically, we will react to the situation, and we’re optimistic that the outlook for Nepal is bright. <br />
	<br />
	On a larger scale, Dragonair is adding six aircraft: four Airbus A320s and two Airbus A330s to the fleet this year - expanding the size of the Dragonair fleet from 32 to 38. Two additional A320s and one A330 have already entered the fleet this May. In terms of Dragonair’s network this year, we launched flights to Jeju on 01 May (three flights per week), to Chiang Mai on 01 July (four flights per week) and to Kolkata, India in winter 2012 (four flights per week). Flights were also resumed to Taichung on 14 May (twice daily), to Guilin on 01 May (daily), and Xian on 01 Apr (daily). <br />
	<br />
	<br />
	<strong>‘Thai Airways was the First Airline to Operate Jet Service to Nepal’ <br />
	<br />
	<br />
	<br />
	<img alt="" src="http://www.abhiyan.com.np/images/uploaded/chantouch-srini_1343383315.jpg" /><br />
	<br />
	CHANTOUCH SRINILTA </strong> <strong><br />
	General Manager <br />
	Nepal &amp; Bhutan <br />
	Thai Airways International Public <br />
	Company Limited <br />
	</strong> <br />
	<br />
	<br />
	<strong>You are going to complete 44 years of operation in Nepal. How has been the journey so far? <br />
	</strong> <br />
	The history of Thai Airways International in Nepal dates back to 1968 when the inhabitants of Kathmandu had their first glimpse of THAI’s 72-seater French built Caravelle SE210 aircraft which touched the unfamiliar runway of Tribhuvan International Airport (TIA). We are going to complete 44 years of our operation in Nepal this year. <br />
	<br />
	THAI was the first-ever airline to operate jet service from Kathmandu and the airline that opened up the forbidden Himalayan Kingdom as a new tourist destination to the world. It was a spectacular and memorable event in the Nepali Aviation history. <br />
	<br />
	THAI also introduced the first computerized reservation system in Kathmandu in February 1985 and provided this facility to its leading travel agents since 1990. Royal Orchid Lounge at the TIA used to be the only lounge operated by THAI in the 1990s. However, after Nepal Government adopted liberal sky policy, many other international airlines joined the race. Our monopoly market share has been diluted a little bit but we are enjoying the competition. It has given us the opportunity to prove ourselves as the first choice carrier in terms of our fleet size and service standards. <br />
	<br />
	<br />
	<strong>What is the demand status on the number of flights over the years? How are you managing the supply to meet the demand? <br />
	</strong> <br />
	Being a pioneer and well renowned carrier, THAI always had the strategy to adjust the number of flights as per market demand. In the beginning, we operated once a week flight between Bangkok and Kathmandu and soon after that, one more flight was added to cope with the high demand of passengers. THAI started daily flights with A300-600 aircraft since the end of October 1997. In the context of growing demand of air seats to/from Nepal, we added three more flights in 2008. Based on the request of different tourism related associations like NATTA, PATA, HAN and NTB, we began to run 10 flights per week. Now we have seven flights a week with a configuration of 30 business class and 279 economy class seats. <br />
	<br />
	<strong><br />
	Thailand has been one of the most popular destinations for outbound tourism for the Nepalis. What is Thai Airways’ contribution to it? <br />
	</strong> <br />
	Thai Airways has played a leading role in the development of tourism not only in Thailand but also in helping Nepal in worldwide promotion as a major tourist destination through various media like our in-flight magazine “Sawadee” and Royal Orchid Holiday Packages tours. Besides performance, punctuality, and silk class services to our valued customers, we have joined hands with the Tourism Authority of Thailand by frequently organizing different events like Trade Fairs, Educational/ Medical fairs, familiarization trips for agents and media, Thai Food festivals, Thai Puppet shows etc. We also offer attractive packages and special fares for students and leisure travelers. <br />
	<br />
	<br />
	<strong>How has Thai Airways been promoting Nepal at the international level? <br />
	</strong> <br />
	Thai Airways was the first airline to operate jet service to Nepal and introduce this country to the world. These days, many airlines are inspired to operate their services in this country due to our successful operation for the past 44 years. THAI had actively participated in “Visit Nepal Year 1997” and spread good word all over to promote “Nepal Tourism Year 2011” as well. We joined hands with the organizers of Asian Mountain Bike championship in 2008 by offering special fares to the participants all around the world. In addition, we organized a big puja same year to introduce Lumbini to the pilgrims from all around the world. This year, we are going to sponsor the famous Nepali musical group “Sur Sudha” to perform in Thailand. <br />
	<br />
	<br />
	<strong>How cooperative are the Nepali Government institutions in helping meet the demands from this market? <br />
	</strong> <br />
	Thai Airways has been getting a very constructive support from the government bodies in Nepal. This is one of the reasons behind our uninterrupted service for the past 44 years. We have always been able to bring into operation the required number of flights connecting Kathmandu and Bangkok as per our market demand. This cooperation is good for both the countries in terms of tourism, economy, education and other sectors. We are thankful to the Nepal Government, NAC, CAAN, TIA, ATC, NTB, NATTA and PATA for the continued support extended towards THAI. <br />
	<br />
	<br />
	<strong>Most of the flights made to Nepal are targeting migrant workers. How sustainable is this policy? <br />
	</strong> <br />
	Labor traffic does not occupy a major business of our flight operations, it is only a partial business of our total occupancy. Since the very beginning, we have had different segments of traffic like the royalties, frequent flyers, government officials, diplomats, expats, students and the tourists. Labor traffic is also part of our business but as I said we don’t depend heavily on it. <br />
	<br />
	<br />
	<strong>What are the operational difficulties and facilities in Nepal? <br />
	</strong> <br />
	Lack of proper infrastructure, unstable government, political instability and unhealthy competition among budget airlines are the drawbacks hindering smooth operation of the renowned carriers such as THAI. <br />
	<br />
	<br />
	<strong>Operating in Nepal is said to be cheap. What is your experience? <br />
	</strong> <br />
	We do not think operating in Nepal is cheap. On the contrary, it is one of the most expensive in terms of ground handling, parking and landing, ground space, rental, ramp, fuel and all kind of other charges. <br />
	<br />
	<br />
	<strong> How are you managing your ground handling staff and crew members? <br />
	</strong> <br />
	THAI has its own handling service in Nepal. It has never compromised in quality services; therefore, we have our own operational, ground handling and administrative staff directly under the THAI set up of course. <br />
	<br />
	<br />
	<br />
	<br />
	<br />
	<strong><br />
	</strong></p>
<p>
	<strong>GSAs that Fuel the Business <br />
	<br />
	<br />
	By Gaurav Aryal </strong><br />
	<br />
	<br />
	Around 85 per cent of international airlines operating in Nepal have made their presence felt through a number of GSAs <br />
	<br />
	<br />
	International airline companies operating in Nepal prefer having a presence through their General Sales Agents (GSA) rather than having their local office stationed in the country. Around 85 per cent of international airlines operating in Nepal have made their presence felt through GSAs. Out of the 28 international airlines currently in operation, only four of them, namely Thai Airways, Air India, Qatar Airways and Etihad Airways have their country offices in Nepal. A source at a leading travel agency under the condition of anonymity said “It’s not only offline but also the online airlines that are operating through their GSAs in Nepal.” <br />
	<br />
	<br />
	Sunil Sharma, Managing Director at Society Travel Service Pvt Ltd said that offline GSAs could be of any number as travel agents have Special Prorate Agreement (SPA) with offline airlines on a code sharing basis. He said that such offline airlines carry transit passengers flying from Nepal to various sectors and destinations around the world. Sharma, who is also a GSA of RAK Airways said, “It would be a major headache for airline companies to have their office setup here and run after various things ranging from policies to issues regarding aviation fuel. The airlines feel it would be a waste of time as the documentation procedure here is difficult along with the bureaucratic hassles. GSAs have the knowhow about local issues and it would be easier for the airlines to operate through GSAs who are handed over with specific duties and responsibilities.” <br />
	<br />
	<br />
	Similarly, it is believed that the GSAs have a greater knowledge on the local market as they are the local partners that have been in existence for a long time. “GSAs bear expenses, mobilise local staff, have detailed information about the local market, and having a GSA is cost effective than having an airline office established here. So, the international airlines prefer having GSAs rather than setting up their local offices of their own,” said the source. GSAs, usually the agent for sales of air tickets, are also the partner for marketing the airlines they represent. The source said that airlines and agents in Nepal jointly carry out marketing campaigns for the airlines. According to the source, the travel agencies are lured to work as GSAs because they receive override commissions along with additional commissions and other benefits like travel certificates, and staff trainings among others. Sharma also said that GSAs work on override commission and set up office, hire staff required at the corporate office and even at the airport. However, ground handling is not allowed to be performed by GSAs as it is taken care of by Nepal Airlines Corporation for every airline other than Thai Airways and Air India. “The majority of the clientele of GSAs are anybody going abroad, be it tourists, migrant workers, students, business persons, visitors, expatriates and everybody else who is travelling,” said a source at a leading travel agency. The source added that the ratio of Nepalis to foreigner passengers is 75:25 per cent. Sharma said that the companies that work as GSAs for passenger segment are also the Cargo Sales Agents (CSA) with the respective airlines. Sources said that GSAs have been operating in Nepal for over three decades now. <br />
	<br />
	<br />
	However, sources said that it is difficult to exactly pin point the size of the GSA market and their respective market share because everything depends on the demand and supply of flights. They added that the demand and supply keeps on varying constantly. <br />
	<br />
	<br />
	The number of international air passengers flying to and from Nepal has increased over the years and so has the number of flights. In the first three months of this year, 717,182 international air passengers travelled via Nepal. According to the data of Nepal Tourism Board, 207,961 tourists arrived in Nepal via air route from January to April 2012. It is a 23.1 per cent increment from 168,958 tourist arrival during the same period of 2011. The major reason behind the increment in air passengers is the increase in tourist inflow and migrant workers going abroad in search of job opportunities, according to Ratish Chandra Lal Suman, General Manager at Tribhuvan International Airport. President Tours and Travels (PTT) represents around half-a-dozen airlines as their GSA. Gulf Air, Qantas Airways, Kenya Airways, United Airlines, Air Mauritius, Indigo Air are some of the airlines that it represents but PTT is the passenger sales agent for United Airlines and Indigo Air. Similarly, Zenith Travels Pvt Ltd, another travel agency represents Bahrain Air, Sri Lankan Airlines, Spice Jet, Turkish Airlines and Qatar Airways Cargo as their GSA. <br />
	<br />
	<br />
	<strong>New Airlines in Nepali Sky <br />
	<br />
	<br />
	By Dipa Baral <br />
	</strong><br />
	<br />
	AirAsia X has already started operations while Malaysia Airlines and BB Airways are planning to operate international flights from September this year <br />
	<br />
	<br />
	Nepal is on the way to become an international air hub, thanks to the rise in the number of tourists and labour traffic in the past few years. AirAsia X, the budget carrier of AirAsia, has already started operations from July 4 this year while Malaysian national carrier Malaysia Airlines and Kathmandu based BB Airways are planning to operate international flights from coming September. Besides, some prominent countries have shown interest to sign Air Service Agreements (ASAs) or to review the past ASAs with Nepal. AirAsia X has started scheduled flights between Malaysian capital Kuala Lumpur and Kathmandu two times a week i.e. Tuesdays and Thursdays and has plans to add two more flights from September this year. The airline has priced its ticket at Rs 11,000 (exclusive of taxes) for one way trip. “The ASA between Nepal and Malaysia allows Malaysian airliners to operate 21 flights a week. But, AirAsia X has taken the permission to operate seven flights a week at the most,” said Suresh Acharya, Head of Air Services Agreement, Airlines and Airport Operation Division at the Ministry of Culture, Tourism and Civil Aviation (MoTCA). <br />
	<br />
	<br />
	BB Airways, promoted by TBI Group of Non Resident Nepalis (NRNs) in Japan, will also operate flights from September 13 this year. The company has already brought a Boeing 757-200 (ER) on wet lease that will operate nine flights a week to Doha and Malaysia. “We will bring another aircraft of the same category after a month of our formal operation and operate 17 flights a week,” said Shishir Bhatta, CEO of BB Airways. The company will also add Singapore and Bangkok to its destinations after getting another aircraft on lease. <br />
	<br />
	<br />
	BB Airways had acquired a license for international operations from the MoTCA in the first week of January 2012. “We are aiming to promote Nepali identity all over the world through our international air service and aspire to place Nepal in the global travelling map,” said Bhatta. The airways has not made public its flight rates yet but informed that the ticket booking will be available both online and via travel agencies. <br />
	<br />
	<br />
	The third airline in the pipeline to commence international air service in Nepal is Malaysia Airlines, the national flag carrier of Malaysia. “It’s been more than a year since Malaysia Airlines obtained operating license from the ministry. It has plans to start flights from coming September,” said Acharya. The airline has a permission to operate seven flights a week between Nepal and Malaysia. Similarly, four countries— Vietnam, America, Australia and Indonesia—have shown interest to sign ASAs with Nepal while United Kingdom (UK), Jordan, Pakistan, Bhutan and United Arab Emirates (UAE) want to review their past ASAs. “We have not been able to translate the talk into action because of Nepal’s vague stance on fifth freedom. When the world is practicing freedom right up to the ninth, we are still arguing over granting fifth freedom right,” said Acharya. In December 2010, the government had to bar Air Arabia from exercising its fifth freedom right to fly on the Kathmandu- Kuala Lumpur sector at the eleventh hour following pressure from Nepal Airlines Corporation (NAC). The national flag carrier had claimed that the decision will make serious impact on its business. The case is now pending in the Supreme Court. “Rather than restricting the government from signing deals with international airlines, it must concentrate on its own capacity building and adopt aggressive marketing strategy,” said Acharya. He underscored the need of networking, partnership and alliance with other airlines to sustain in the present world. However, if NAC had believed that Air Arabia’s fifth freedom right would jeopardise its existence, it is yet to see what impact the entry of these three new airlines will make. “Once the new airlines commence operation, the competition will become even tougher because they will certainly end NAC’s monopoly in catering to the labour traffic. But, we cannot hold the market for NAC as the country has been practicing liberal sky policy. It is high time that NAC improved its services and got ready for competition,” said Acharya. <br />
	<br />
	<br />
	The MoTCA has also issued a 45-day public notice on May 25 inviting domestic operators to apply for international operation. The notice has invited applications for a chartered and a cargo flight each. Companies having paid-up capital of Rs 500 million and security bond of Rs 5 million can apply for the license by paying Rs 50,000 to the ministry and avail the document of Terms of Reference (ToR). The companies should also pay Rs 50,000 per route as royalty. <br />
	<br />
	<br />
	“So far, Siddartha International Airlines has applied to operate a chartered flight. But we hope to get some more applications as there is still enough time to apply,” said a high level official at the MoTCA. <br />
	<br />
	<br />
	<strong>Five Airlines: One Destination <br />
	<br />
	<br />
	By Sushila Budhathoki </strong><br />
	<br />
	<br />
	Nepal experienced the formal beginning of aviation in 1949 when a lone 4-seater Indian Beechcraft Bonanza aircraft arrived in Kathmandu <br />
	<br />
	<br />
	With 27 per cent arrivals and 14 per cent departures out of the total passenger movement in the year 2011, the airline companies originating from India contribute a large chunk of the international passenger movement in Nepal via its flights to Kathmandu. According to the TIA passenger manifest, the airlines from India registered passenger arrival numbering 354,738 out of the total of 1,292,515 passengers that landed in Nepal and 377,867 departures out of the total 1,407,512 departing passengers. Nepal experienced the formal beginning of aviation in 1949 when a lone, 4-seater Indian Beechcraft Bonanza aircraft arrived in Kathmandu. And after a decade, Himalayan Aviation Dakota had the first charter flight between Calcutta (now Kolkata) and Kathmandu. Airlines from India came into business operation from 1953. More than half-a-century of existence in the Nepali sky, Indian airliners still prove to be among the leading carriers that bring substantial number of passengers to Nepal. Ranjan Pokhrel, Head of the International Relations Department at CAAN, says, “If we look into the history of Nepali aviation, we find that the Indian airliners have made a significant contribution to Nepal’s aviation development.” He adds, “Indian airliners are important not only for the aviation sector but also to the economic, social and cultural aspects of Nepal. They are contributing towards providing transport facilities, bringing Indian tourists and strengthening the high level political relationship between Nepal and India from the beginning.” Currently, there are five Indian carriers - Air India, Jet Airways, Jet Lite, Indigo Airlines and Spice Jet - operating between Nepal and India. Kingfisher Airlines, once a major operator on the Kathmandu-Delhi route, has postponed its many international flights including the Kathmandu sector. Air India now operates 32 flights in a week which includes a daily flight between Kathmandu and Delhi and 4 flights a week on the Kathmandu-Kolkata and Kathmandu-Banaras routes. Similar is the story of another Indian carrier Jet Airways which operates a daily flight each on the Delhi-Kathmandu and Mumbai-Kathmandu sectors. Jet Lite, Spice Jet and Indigo have one flight each on the Delhi-Kathmandu route on a daily basis. <br />
	<br />
	<br />
	Nepal Airlines Corporation (NAC), the only Nepali airlines which pioneered flights to Indian cities has now postponed its flights since November 2011. It used to fly to Patna, Calcutta, Mumbai and Bangalore earlier. In the last two decades, NAC has not added any new aircraft. Pradip Karki, Director of Traffic Management at NAC, however, assures that flights to Indian destinations will resume soon. He says NAC must resume flights to India with a new fleet and the government should support the idea. He adds, “We have discussed and signed an MoU with the aircraft manufacturing company to either buy or lease aircraft. There may be Airbus A320 - a 150 seater or A330 - a 250 seater that will operate flights to India in the future.” Most Indian carriers are said to be low cost carriers (LCCs) when compared to other airlines. The fare for the economic class seats starts at Rs 6,300 while business class seats cost a maximum of Rs 34,000 on the Kathmandu-Delhi route. Many other international airlines have started to fly in the same route and the competition has grown stronger. TK Saha, the Country Manager at Air India says that his team is happy with the sector. “In spite of severe competition by other international airlines as well as Indian competitors, we are maintaining and operating our flights with an average of 74 per cent occupancy,” he adds. <br />
	<br />
	<br />
	Nepali and Indian aviation authorities reviewed the Air Service Agreement (ASA) in 2009 to permit Nepali airline companies to fly 24 destinations in India. As per the reviewed ASA, airlines from Nepal can incre',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-08-22',
			'keywords' => '',
			'description' => 'The flow of international passengers in the first quarter of 2012 has been impressive enough to raise optimism among the concerned stakeholders. The statistics between January and March 2012 is an indication that international air service and passenger movement to and from Nepal is set to register a significant increase this year compared to 2011.',
			'sortorder' => '550',
			'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) 13 => array(
		'Article' => array(
			'id' => '649',
			'article_category_id' => '46',
			'title' => 'Salman Lafit Rawn',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size: 14px;"><strong><br />
	</strong></span></p>
<p>
	<span style="font-size:14px;"><strong>We Have To Work According To Consumer Psychology’</strong></span></p>
<p>
	<span style="font-size:14px;"><strong><br />
	<br />
	<br />
	</strong></span></p>
<p>
	<img alt="rawn" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/rawn-interview(1).jpg" style="width: 230px; height: 350px;" vspace="5" /><br />
	<br />
	<strong>Salman Latif Rawn <br />
	Country Manager, Nepal <br />
	Coca-Cola Sabco <br />
	</strong><br />
	<br />
	<br />
	Salman Lafit Rawn is the country manager of Coca-Cola franchise in Nepal since January 2012. Prior to joining Coca - Cola, he had worked in the capacity of the General Manager at Pepsi Cola franchise Iran. He has also worked as the Country Manager at Alokozay Group of Companies in Dubai – UAE . From 2005 to 2007 he was with coca-cola company managing its franchise in Afganistan in the capacity of Country General Manager. An MBA Graduate from the institute of Business Administration in Lahore, Rawn has more than 25 years of extensive and successful experience in the Fast Moving Consumer Goods (FMCG) industry. In an Interview with New Business Age Rawn shared the expansion and investment plans of his company for Nepal and also shed light on the existing challenges. Excerpts: <br />
	<br />
	<strong><br />
	We have heard about the massive expansion plan of Coca-Cola in Nepal. Would you like to shed light on it? <br />
	<br />
	</strong><br />
	The Coca-Cola Group has been working on the expansion of the available categories of its beverage. Right now, we are only doing the Returnable Glass (RGB) and PET business categories. We are investing 23 million USD in a new plant in Terai this year which will be the group’s largest single-time investment in Nepal so far. Internationally, we have many areas where we work in, for example, juice, water and energy drinks. Taking into account the uniqueness and demand of this market, we are planning to introduce some of those products here in the coming years. <br />
	<br />
	<br />
	It’s tough bringing investment in Nepal or convincing people for funding, especially when the political and business environment is not very constructive. However, we have managed to bring investment this time and we are hopeful that if we could use it well, we could bring in more money for this country. <br />
	<br />
	<strong><br />
	What can be the positive outlook for this investment? <br />
	</strong><br />
	<br />
	If we are making profit from this country, we also have to return something to it. There will be new expansions in terms of investing in the plant and machines and it will create new employment opportunities for people. Besides, we will be contributing more to the government exchequer. Nepal is a landlocked country where we need to import most of the raw materials which means that more money will go to the government coffer in the form of Customs Duty or Value Added Tax (VAT) <br />
	<br />
	<strong><br />
	I believe that Coca-Cola has not introduced a wide range of products that are available in many other countries. What are you doing in this regard? <br />
	</strong><br />
	<br />
	Coca-Cola has a wide range of products. Unfortunately, the size of the market is too small to produce all of those products in Nepal. Putting up a manufacturing facility for everything produced by the group will be highly capital intensive. However, we are trying to bring machines which can produce multiple products. Another constraint for this is the per capita income of the Nepali people which is very low. An ordinary Nepali citizen would not spend much on beverages. We are more dependent on tourists and their consumption trend. But this does not mean that we will not introduce any new products in Nepal; we will first import a new product range in Nepal from our plants in the neighbouring country. If we see demand for those products in the market, we will then accordingly set up the manufacturing plant here. We can introduce juice, water and energy drinks and add more flavours to the existing products in the future. <br />
	<br />
	<br />
	<strong>Though the per capita income of the Nepalis is still low, the distribution system for products like beverages has expanded in Nepal in recent years due massive expansion in road network. Has not this development in infrastructure helped in increasing the business prospects? <br />
	</strong><br />
	<br />
	These aspects are not enough because we have to work according to consumer psychology. It has been discovered through our consumer researches and direct discussion with the consumers that people living in European countries and Western territories don’t limit their beverage consumption only to events or family gatherings. It is part of their regular life as well whereas in Nepal, there is still a trend to consume beverage during particular events and festivals or in the presence of guests. The per capita soft drink consumption of the Nepalis is less than eight bottles a year in comparison to other South Asian countries where it is anywhere from 24 to 48 bottles a year. It will certainly be safe for us to introduce new range of products as and when Coca-Cola becomes a part of the Nepali people’s everyday lives. <br />
	<br />
	<br />
	<strong>Coca Cola enjoyed 70-80 percent of market share in Nepal till a few years ago. That figure is now reduced to 66 per cent due to aggressive marketing from the competitor. What are you doing to regain the lost market share? <br />
	</strong><br />
	<br />
	I have worked in markets where we had as much as 92 per cent market share. But these percentages are not attainable when there are two competitive companies operating in the same market. The reality is that when two companies are working competitively, market shares settle down somewhere between 60 and 40. I have worked both with Pepsi and Coke and I know where the market share of Coke is higher than Pepsi or vice-versa and what are the reasons behind it. Our objective behind expansion and investment is to have greater market share and product availability during the peak season. If my production capacity does not allow me to reach everyone during the peak season when they want to consume my product, people will not consume my products in the future. It’s because that opportunity will be grabbed by someone else. So we are trying to regain that lost opportunity which someone else has grabbed. And the moment we have that, the lost market share will automatically come back to us. <br />
	<br />
	<br />
	<strong>What are Coca-Cola’s marketing strategies in Nepal that has helped the brand to maintain its market leader position? <br />
	<br />
	</strong><br />
	Multinational companies implement different marketing strategies at different locations. Despite having a vast range of products in their portfolio, they do consider various aspects for example, which market to go, when to go, what amount of market maturity to seek etc before launching their products. You might find some products in Nepal that are imported in the quantity of thousands or hundreds. However, when it comes to manufacture those products here, it is imperative to justify the required investment. It is the same with us so we are waiting for the right time to introduce additional products. <br />
	<br />
	<br />
	<strong>Bottlers Nepal – the Nepali bottler of Coke – had won the Country of the Year Award in 2010. When next can we expect a similar feat from Coca- Cola’s Nepal operation? <br />
	</strong><br />
	<br />
	We bagged the ‘Country of the Year Award’ continuously for two years in 2009 and 2010. There are nine countries in the group now and all of them compete for this award. Surely, there are countries that have advanced technologies such as South Africa. There is Sri Lanka, Uganda, Ethiopia and we are competing with all of them. But even this year, we won two awards— Employee Engagement Award and Best Water Usage Award. We are competing again and hope to get the Country of the Year Award in the coming years. <br />
	<br />
	<br />
	<strong>How has the ongoing financial crisis affected the soft drinks market in Nepal? <br />
	<br />
	</strong><br />
	We, or for that matter, any other FMCG companies have been seriously affected on two counts. First, with all those days of closures, the production has been disturbed. Second, the distribution of the product has become very difficult. Continuous bandhs have affected our transportation system adversely and a weak transportation mechanism impacts our production system as well. We produce less when there isn’t enough transportation facility available. When we produce less, the cost per case goes high and it affects us as producers as well as the consumers. <br />
	<br />
	<br />
	<strong>What kind of challenges do you see in your job in the Nepali market? <br />
	<br />
	</strong><br />
	Electricity is a very big challenge because we are in a business where products are best served when they are chilled. We have distributed refrigerators to the outlets in the market but they cannot sell chilled drinks due to power outage. Another challenge is gasoline or diesel prices which increase every couple of months or so. At the same time, we can’t increase the price of our products to adjust accordingly. The frequent hike in petroleum prices also makes it difficult for us to decide on our annual budget. The third biggest challenge is the dollar rate fluctuation which has been impacting us heavily as we have to import 90 per cent of the raw material that we use. <br />
	<br />
	<br />
	<strong>Is that the reason for you to reduce your advertising budget? <br />
	<br />
	</strong><br />
	We have not reduced our advertising budget as such. We have rather changed the focus of our advertising campaigns. For example, if there is lesser electricity, the people will be watching television for a lesser duration of time. So we thought of diverting our investment from electronic mediums to advertising through hoarding boards that are more visible and do not get impacted by power outage. You can see increased number of such hoarding boards in the Kathmandu Valley when you move around. There is hardly any main road where Coca-Cola is not present so it’s just a shift of focus. <br />
	<br />
	<br />
	<strong>How do you view the present competition in Nepal’s soft drink market? <br />
	</strong><br />
	<br />
	There are two major categories in the Carbonated Soft Drink (CSD) industry —water and flavoured drinks. There is no ‘A’ Class player in water so far in Nepal which is dominated by a few local brands available in the market. However, there is a competition between two players in the flavoured drinks category. Our competitor is trying to build a market for itself and so are we. But the good thing is that our share of the market pie becomes bigger with the growth in the market size. I could see that as an industry, we are less dependent on trying to eat each other’s pie. Instead, we are trying to increase the total size of the market. The fight between the two companies was stringent in the past but it is not the same anymore because a person working for Coca-Cola today can work for Pepsi tomorrow and vice-versa. At present, the fight is more indirect for example; it is for the space in the outlets. The general size of our grocery shops is small so it’s not just the soft drinks producers but the entire FMCG industry that is jostling for space in the outlets. <br />
	<br />
	<br />
	<strong>It is said that one of the major problems in the Nepali market is that of arrears in collection of dues from the distributors. How is your experience? <br />
	<br />
	</strong><br />
	We don’t have such issues. I have also talked with other FMCG companies and even they are not operating on credits. However, I don’t say that we don’t have any arrears at all. There are credits in the market but these are secure credits. Our distributors are working with us for a reasonable period of time so there is a certain level of credibility in our relations. If we realise that a distributor or distributing channel might land us in troubled waters, we prefer not to extend any unsecured business with them. <br />
	<br />
	<br />
	<strong>Bottlers Nepal has increased its spending on CSR activities in recent years. Can you tell us about the new CSR activities that are being planned? <br />
	<br />
	</strong><br />
	I could see a huge chunk of activities this year coming under our CSR initiatives apart from our regular activities. We have been working on water utilisation, plantation and education and we have also been sponsoring certain orphanages. Our new project is to extend support to women entrepreneurs so we have adopted a vision “5 BY 20” which is a commitment to empower 5 million women to turn successful entrepreneurs by the 2020. Nepal has also been selected for the project from the South-West Asia Region. A senior person representing the Director level of the India Division of the Coca- Cola Company will be visiting Nepal next week to explore the details of the campaign. The Senior Vice President of the division will accompany him and together they will be setting different criteria. The criteria will entail aspects like who can qualify, what can be the measures to qualify and what will be an appropriate form of support for women entrepreneurs etc. Another project which we are going to introduce is ‘Support My School’. It is about kids who run away from schools, are not interested in study and do not have access to studies. This big campaign will be looking at ways to help them through uniforms, books, building libraries and classrooms etc. <br />
	<br />
	<br />
	<strong>As a global operator, what are the challenges you face in a country like Nepal? <br />
	<br />
	</strong><br />
	Nepal is among the very few countries in the world which are landlocked. It does not have much of its own revenue generation. To analyse how much people can buy from us and what things they will be interested in, we will have to watch their source of revenue. Like I said earlier, the smaller base of the country, lack of electricity and diesel, and dollar rate fluctuation are the major challenges in bringing big investment to this country. Another problem is that of finding the right people to work because the Nepali industry is small. Had there been multiple industries, there would have been a bigger pool of human resource to choose from. <br />
	<br />
	<br />
	<strong>What kind of government support are you looking for? <br />
	</strong><br />
	<br />
	The government should see the quantum of direct or indirect taxes and exchequers that we are paying. If it increases the excise duty or other duties at a very abnormal rate to industries like us, bringing investment to this country and creating opportunities for employment will be difficult. We are trying to expand our business so we need facilitation in technology and computerisation from the government. We will not be able to bring investment to this country if we have to wait years-on-end for approval on bringing software and technology. At present, we are trying to bring in a software called SAP and it’s already been a year since we applied to the Inland Revenue Department for the approval. Our application is simply gathering dust there. SAP will enable our headquarters to evaluate our work and access our records through our central server. It is easier to operate when this system is installed and therefore, we have been requesting the government to approve our application. We are not the first company in Nepal to use this software as there are some other companies that are already using the same technology. We have explained this to the government authorities but they told us to wait for the permission. We have met the concerned officials and satisfied all their queries but there is no progress so far. How can we bring more technology and investment in this country if the government does not facilitate manufacturing industry with the required technologies? It is our sincere request to the government to do the needful and approve our application on the SAP software. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'Salman Lafit Rawn is the country manager of Coca-Cola franchise in Nepal since January 2012. Prior to joining Coca - Cola, he had worked in the capacity of the General Manager at Pepsi Cola franchise Iran. He has also worked as the Country Manager at Alokozay Group of Companies in Dubai – UAE',
			'sortorder' => '549',
			'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) 14 => array(
		'Article' => array(
			'id' => '648',
			'article_category_id' => '47',
			'title' => 'Beauty Queen Turned Businessperson',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Gaurav Aryal <br />
	<br />
	</strong><br />
	Ritu Singh Vaidya, Managing Director at United Traders Syndicate Pvt Ltd (UTS), has enjoyed every role she has stepped into. When she walked on the ramp, she mastered it with her style. When she was on the stage, she cherished the music and touched the listeners’ heart. Now, she is handling the position of a leading business person very well. Model, former Miss India, singer and now a businessperson; Vaidya has perfected the responsibilities she thinks are brought to her by destiny and her dedication in the pursuit of dreams. <br />
	<br />
	<img alt="Ritu Singh Vaidya" border="1" height="362" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/personality(3).jpg" vspace="5" width="300" /><br />
	<br />
	<br />
	Ritu Singh Vaidya always dreamed to set up her own business although she was at the pinnacle of her modelling career. With twists and turns of her career that were never disappointing for her, she has now climbed up the ladder towards a leading position in one of the leading business houses of Nepal, Vaidya’s Organisation of Industries and Trading House (VOITH). Her working style is ruled by discipline as she was raised in a family with partly business and partly army background. <br />
	<br />
	Vaidya recalls her childhood in Delhi as “nice, pleasant and loving”. She feels fortunate about having pleasurable childhood days. Her grandfathers were in the business sector and were running their family business in present day Pakistan. She says her grandfathers moved to Delhi when she was an eighth grader. She was educated in Delhi and after completing school, Vaidya pursued fashion designing for her higher studies. She is also a BA in Economics and Political Science from Delhi University. <br />
	<br />
	It was obvious for the beautiful and charming Vaidya to be offered a career in glamour and modelling industry. She believes destiny took her into the world of modelling. “I was in class XII when my friends and I participated in the May Queen contest. So, that was the beginning of it.” She was crowned the May Queen title. She actively began modelling after many offers started coming her way. Her journey on the ramp did not stop immediately though. She went to the Miss India contest and grabbed the title that many Indian women dream to achieve – Miss India – in 1991. After winning the title at home, her next target was to win international titles. Vaidya became the fifth runner up in Miss World, second runner up in Miss Asia World and first runner up in Miss India Universe. <br />
	<br />
	“I took it (modelling) on because it just came to me. It happens that things suddenly start working for you and I think they are the natural things to happen because they just come your way,” she says, “But I always had an entrepreneurial spirit in me. I always wanted to establish myself in some kind of business where I felt challenged. I am someone, who likes a routine, discipline and innovativeness.” Vaidya believes she was always inclined towards business. Even during her modelling days, she would dream of getting into some sort of business in the future. “I wasn’t somebody who was going into Bollywood” she says. <br />
	<br />
	Vaidya says she has never been a person who is devoted to only one thing. “When I got into the glamour world, I was also very focused on my studies and about what I was going to do next. Though I was very much enjoying it, I couldn’t see myself turning forty on the ramp,” she explains. <br />
	<br />
	Everything was organised and settled for young Vaidya even at the age of 20. She says she was almost leading a life what people start mostly at their middle ages. She was just 20 when she met businessman Suraj Vaidya in Kathmandu at a charity fashion show organised by him for Bal Mandir. The professional acquaintance grew into love and later to marriage within a matter of years. Vaidya recalls that the initial days of living in Nepal after her marriage was completely different from her earlier days. She says it was a total change in her life, family, career and friends. “The first year of marriage was difficult because I was not used to a lot of things. But my husband made it very easy for me as he was very easy and patient about me even when I went back to Delhi 15 times in 12 months,” she shares. <br />
	<br />
	Vaidya ventured into fashion designing in her initial days in Nepal and worked as a fashion designer for seven years. That was the time when she was also rearing her child. Vaidya stopped designing clothes and dived into her new found passion – singing. She released an album, ‘Sun Zara’ and appeared in her album’s music videos as well. However, she has abandoned her role as a singer as she thinks it consumes a lot of her time and takes her away from her family. “When I released my first album, I really thought I can manage singing simultaneously with my business commitments but later I realised it is not so. For Hindi singing you have to be in Mumbai and be accessible whenever somebody calls you. That was not something I was looking for and desired in my life. Singing for films and doing stage shows is not my cup of tea.” She started taking responsibilities in VOITH when Suraj Vaidya was busy travelling and spending time for larger business responsibilities. <br />
	<br />
	“He had a great ideology on which everybody was moving and that was a great success too. Once he was unwell and had to take rest for treatment. That was when I took up the work,” she says. At present, she is completely looking after UTS and its divisions that deal in Toyota and heavy equipments. Along with it, she occasionally looks after the spa she has set up a few years back. When it comes to working approach, she says, “My approach is very simple. I try to simplify things and believe in a totally centralised command. But jobs are designated to different people and they have a total free hand in what they do. But yes, it has to be totally accountable.” She encourages flow of new ideas from her employees but feels that the final central command has to be strong enough to prevent things going haywire. Vaidya thinks employees are most happy when you let them do the work, give them a good working environment, be ready to listen to their suggestions and at the same time reward them for what they do. Vaidya has a disciplined working style. “Because I am disciplined, a lot of my staff has to be disciplined. They can’t take anything lightly because they know when I say something that needs to be done. I am very focused on making sure that whatever needs to be done, should be done in the given frame of time,” she emphasises. <br />
	<br />
	<img alt="Ritu Singh Vaidya" border="1" height="460" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/personality1(1).jpg" vspace="5" width="300" /><br />
	<br />
	Vaidya reveals that her organisation is planning to expand into newer sectors like hydropower, hospitality and education. She is trying to consolidate what is already with the organisation along with planning of new ventures. She says, “Hydropower should be there soon as it is already in the pipeline and we are seriously looking into hospitality. Hopefully, we will be coming with new ventures in the next two years if we don’t have external disturbing factors like endless bandhs and political crisis.” Vaidya believes that she has not earned enough money to spend on charities and philanthropic activities. “I believe in doing philanthropy with my own money. I won’t be convinced about it if I am going to throw somebody else’s money and call it a charity. If I can do well and manage to spare money from my earnings; that is the right kind of charity that I would want to do.” <br />
	<br />
	She thinks she is very compartmental and does not like to mix her personal and professional life together. So, she never takes her office to home. “My time is totally devoted to home when I am home. Similarly, when I am in the office, I give all the time to my office works,” Vaidya reveals. Evenings are for her son and husband while she reserves her morning time usually for exercising. A strong believer in destiny, Vaidya is very satisfied with what life has brought to her. She takes her life as it comes and is ready for wherever it leads to. Optimistic in nature, one shouldn’t be surprised to find her trying new things, ventures and passions in the days to come. Her well wishers shouldn’t be astonished to see her in a completely new avatar not too long in the future. <br />
	<br />
	<br />
	<img alt="Ritu Singh Vaidya" border="1" height="296" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/personality2.jpg" vspace="5" width="300" /><br />
	<br />
	<br />
	<strong>PERSONAL SIDE <br />
	</strong><br />
	<br />
	<strong>Take on success:</strong> I am a very happy content person. Nevertheless, the day I do not want to do anything more, I would think that I am dead. From that point of view, there is a lot more to do. <br />
	<br />
	<br />
	<strong>Planning a holiday:</strong> I like things to be done perfectly and neatly. I make sure I do a lot of research on wherever I am going and know the places so that I won’t miss what I want to see and what we are going to do. I like my travel to be organised right from my ticketing and stay to every itinerary and the places where we are going. <br />
	<br />
	<br />
	<strong>Brand consciousness:</strong> If something is nice it does not need to be branded. I believe in being comfortable and wear what I think looks best on me. <br />
	<br />
	<br />
	<strong>Secret of beauty: </strong>Fitness is something I really believe in. You should be very fit because body is the vehicle that carries you. So you have to take care of it. <br />
	<br />
	<br />
	<strong>Spending leisure time:</strong> Reading and listening to music. I read more of philosophies and autobiographies. I love Indian classical music and mostly listen to Hindi music and instrumental and for English, I like jazz and more soulful songs. <br />
	<br />
	<br />
	<strong>Favourite pastimes: </strong>I love to sing and do gardening and am passionate about my house. Therefore, I love cleaning on my off days. <br />
	<br />
	<br />
	<strong>Better mother or a better boss: </strong>I try to justify every role - a good mother, good wife, good house keeper and a good business person. <br />
	<br />
	<br />
	<strong>Favourite Travel Destination: </strong>Paris among all because it is the most romantic and artistic city and also Venice. Turkey was also a very nice place where we went recently and Russia turned out to be a pleasant surprise. <br />
	<br />
	<br />
	<strong>Sporty indulgence: </strong>I used to be a badminton champion in my school. I adored playing volleyball and basketball but now I am more into gymming. <br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-09-17',
			'keywords' => '',
			'description' => 'Ritu Singh Vaidya, Managing Director at United Traders Syndicate Pvt Ltd (UTS), has enjoyed every role she has stepped into. When she walked on the ramp, she mastered it with her style. When she was on the stage, she cherished the music and touched the listeners’ heart.',
			'sortorder' => '548',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	)
)
$current_user = null
$logged_in = false
$xml = false
include - APP/View/Elements/side_bar.ctp, line 133
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::_renderElement() - CORE/Cake/View/View.php, line 1224
View::element() - CORE/Cake/View/View.php, line 418
include - APP/View/Articles/index.ctp, line 157
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::render() - CORE/Cake/View/View.php, line 473
Controller::render() - CORE/Cake/Controller/Controller.php, line 968
Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200
Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167
[main] - APP/webroot/index.php, line 117

Warning (2): simplexml_load_file() [<a href='http://php.net/function.simplexml-load-file'>function.simplexml-load-file</a>]: I/O warning : failed to load external entity &quot;&quot; [APP/View/Elements/side_bar.ctp, line 133]
Code Context
  //  $file = 'http://aabhiyan:QUVLg8Wzs2F7G9N7@nepalstock.com.np/api/subindexdata.xml';



    if(!$xml = simplexml_load_file($file)){
$viewFile = '/var/www/html/newbusinessage.com/app/View/Elements/side_bar.ctp'
$dataForView = array(
	'articles' => array(
		(int) 0 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 1 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 2 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 3 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 4 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 5 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 6 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 7 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 8 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 9 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 10 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 11 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 12 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 13 => array(
			'Article' => array(
				[maximum depth reached]
			)
		),
		(int) 14 => array(
			'Article' => array(
				[maximum depth reached]
			)
		)
	),
	'current_user' => null,
	'logged_in' => false
)
$articles = array(
	(int) 0 => array(
		'Article' => array(
			'id' => '664',
			'article_category_id' => '60',
			'title' => 'Cathay Pacific Airways Wins “World’s Best Business Class”',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="" border="1" height="214" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/cathay(1).jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	Cathay Pacific Airways has been awarded with “World’s Best Business Class” award at Skytrax World Airline Awards ceremony held on July 12. The Skytrax awards, conducted by the global aviation research organisation, polled over 18 million business and leisure air travelers from more than 100 countries. <br />
	<br />
	<br />
	“The result is the global benchmark of airline excellence, in which more than 18 million airline passengers from across the world picked their choices. We couldn’t have delivered the industry-beating products and services without our customers. I would also like to thank all for their genuine collaboration in the design process,” said John Slosar, Chief Executive of Cathay Pacific. <br />
	<br />
	<br />
	As passengers enter the cabin, they immediately appreciate the sense of space and openness. It has clean, sculpted lines define private seats with direct aisle access. Abstract patterns, richly woven fabrics, fresh-cut orchids and original artwork harmonise to create a warm, premium residential feel. The new Business Class features natural leather, brushed steel and richly woven fabrics that blend soothing green, brown and champagne tones. Abstract patterns on table tops, fresh-cut flowers and splashes of colour in storage areas provide elements of warmth. <br />
	<br />
	<br />
	Each seat is equipped with a universal Power Supply outlet to keep electronic devices fully charged. A Multi-port Connector includes an RCA port, an iPhone/iPod connector and a USB port. The RCA and the iPhone/iPod connector allow passengers to connect their own devices and watch video through the Personal TV. Cathay Pacific is also introducing a new line of Business Class service-ware featuring simple, elegantly designed white porcelain by Narumi of Japan. The appetiser plate features an abstract bamboo pattern also found on the signature plate introduced in The Deli of The Cabin. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Cathay Pacific Airways has been awarded with “World’s Best Business Class” award at Skytrax World Airline Awards ceremony held on July 12. The Skytrax awards, conducted by the global aviation research organisation, polled over 18 million business and leisure air travelers from more than 100 countries.',
			'sortorder' => '562',
			'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) 1 => array(
		'Article' => array(
			'id' => '663',
			'article_category_id' => '60',
			'title' => 'Air Arabia Named World’s Second Best Performing Airline',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="" border="1" height="221" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/airarabia.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	Air Arabia, demonstrated sustained profitability and solid growth margins in 2011, placing it at number two among all airlines worldwide. In each of the past years, the airline has advanced its ranking in the TPA rankings. <br />
	<br />
	<br />
	Air Arabia, the Middle East and North Africa’s first and largest low-cost carrier, has been ranked as the world’s second best performing airline in a study by Aviation Week, the leading global aviation magazine. The Top-Performing Airlines (TPA) Study ranks the top 10 performing airlines worldwide, based on five different performance categories, including financial and operational performance. <br />
	<br />
	<br />
	Air Arabia, demonstrated sustained profitability and solid growth margins in 2011, placing it at number two among all airlines worldwide. In each of the past years, the airline has advanced its ranking in the TPA rankings. <br />
	<br />
	<br />
	“To be ranked second among all airlines worldwide for the level of our performance, it’s a remarkable achievement and a source of great pride for everyone at Air Arabia,” said, Adel Ali, Group Chief Executive Officer of Air Arabia. “As we continue to expand into new geographies and consolidate our leadership position in existing markets, Air Arabia is uniquely positioned to capitalise on the many exciting opportunities present in the aviation sector today.” <br />
	<br />
	<br />
	Air Arabia, which operates flights to 75 destinations from three regional hubs, delivered strong financial and operational performance in 2011. The low-cost pioneer launched six new destinations and took delivery of six new aircraft in 2011, while carrying a total of 4.7 million passengers, an increase of six per cent compared to the previous year. <br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Air Arabia, demonstrated sustained profitability and solid growth margins in 2011, placing it at number two among all airlines worldwide. In each of the past years, the airline has advanced its ranking in the TPA rankings.',
			'sortorder' => '561',
			'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) 2 => array(
		'Article' => array(
			'id' => '662',
			'article_category_id' => '60',
			'title' => 'Qatar Airways Named Best Airlines',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong><img alt="" border="1" height="158" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/qatar(4).jpg" vspace="5" width="400" /><br />
	<br />
	Qatar Airways has seen rapid growth in just 15 years of operation, currently operating a modern fleet of 109 aircraft to 117 key business and leisure destinations. <br />
	</strong><br />
	<br />
	Qatar Airways has been named Airline of the Year 2012 for the second year running at the prestigious annual Skytrax World Airline Awards held at the Farnborough Air Show. The Airways retained the coveted title of Airline of the Year 2012 and notched up two further awards – Best Airline in the Middle East for the seventh consecutive year and the Best Airline Staff Service award in the Middle East. The winners were announced at an award ceremony attended by leading figures from the global aviation industry at the Farnborough Air Show held on June 12. The Skytrax awards, conducted by the global aviation research organisation, polled over 18 million business and leisure air travellers from more than 100 countries. <br />
	<br />
	<img alt="" border="1" height="401" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/bestqatarairways.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	Akbar Al Baker, CEO of Qatar Airways hailed the achievements as “fantastic recognition” of all employees at Qatar Airways for the dedication and commitment to their job. “I am extremely proud of the adulation given once again by the very people who fly - the travelling public, for their support and faith in Qatar Airways,” he said at the ceremony. Retaining awards is always difficult, but we have managed to do so amid the tough competition which only shows we remain focused in our day to day job of offering passengers what they fully deserve; the highest standards of service both in the air and on the ground, he added. <br />
	<br />
	<br />
	Edward Plaisted, CEO of Skytrax said, “To win the ‘Airline of the Year’ award for a second successive year is a remarkable achievement for Qatar Airways, and a clear recognition of the continued efforts by its management and staff to be the world’s best airline.” Qatar Airways has seen rapid growth in just 15 years of operation, currently operating a modern fleet of 109 aircraft to 117 key business and leisure destinations across Europe, Middle East, Africa, Asia Pacific, North America and South America. Since the beginning of the year, it has launched flights to Baku (Azerbaijan), Tbilisi (Georgia), Kigali (Rwanda), Zagreb (Croatia), Erbil (Iraq), Baghdad, and Perth (Australia). The Airways has planned to launch its services to new destinations, including Kilimanjaro (Tanzania), Mombasa (Kenya), Yangon (Myanmar), Maputo (Mozambique) and Belgrade (Serbia) within a couple of months. <br />
	<br />
	<br />
	The subsidiary of Qatar Airways, Qatar Duty Free, has announced an exciting Summer Surprises Promotion for passengers departing from, or transiting through, Doha International Airport (DIA). The promotion that runs until August 31 allows customers who spend $136 or more on duty free purchases to automatically be eligible for a raffle draw to win shopping vouchers worth US $10,000, $5,000 and $1,000 and discount coupons. <br />
	<br />
	<br />
	Similarly, Qatar Airways has launched a Twitter-powered global social media campaign designed to connect people from around the world. The airline has also announced a Twitter-only competition called Tweet-a-Meet through which participants can win business class trip to their favourite destination. <br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Qatar Airways has been named Airline of the Year 2012 for the second year running at the prestigious annual Skytrax World Airline Awards held at the Farnborough Air Show. The Airways retained the coveted title of Airline of the Year 2012 and notched up two further awards – Best Airline in the Middle East for the seventh consecutive year and the Best Airline Staff Service award in the Middle East. The winners were announced at an award ceremony attended by leading figures from the global aviation industry at the Farnborough Air Show held on June 12. The Skytrax awards, conducted by the global aviation research organisation, polled over 18 million business and leisure air travellers from more than 100 countries.',
			'sortorder' => '560',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 3 => array(
		'Article' => array(
			'id' => '661',
			'article_category_id' => '60',
			'title' => 'Etihad Airways Q2 Revenue US$ 1.25 Billion',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="etihadairways" border="1" height="178" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/etihad(1).jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	Etihad Airways’ ASKs rose by 25 per cent to 15.2 billion in the second quarter, as the fleet grew to 67 aircraft from its earlier 61. The revenue of Etihad Airways in six months this year has increased by 31 per cent to US$ 1.25 billion from US$ 957 million as compared to last year. The number of passengers has leapt up by 34 per cent to 4.89 million during the six months from 2.55 million in 2011. The increase in overall capacity and improved seat factors has contributed to the increment in the revenue, says the company. <br />
	<br />
	<br />
	The record results were boosted by the airline’s growing network of code-shares and strategic partnerships which together fed 800,000 passengers into Etihad Airways’ network in the last six months, contributing US$ 281 million. James Hogan, President and Chief Executive Officer of Etihad Airways said, “These results are an endorsement of our strategy, which has seen us widen and deepen our partnerships in addition to continued focus on our organic growth plan.” <br />
	<br />
	<br />
	Etihad Airways’ available seat kilometres (ASKs) rose by 25 per cent to 15.2 billion in the second quarter, as the fleet grew to 67 aircraft from its earlier 61. Likewise, revenue passenger kilometres (RPKs) rose 33 per cent to 11.8 billion from 8.9 billion. During the period, the Airways took minority equity stakes in Aer Lingus and Virgin Australia, adding to its minority shareholdings in Air Berlin and Air Seychelles. These five airlines together carried 72 million passengers on 376 aircraft in 2011, generating combined revenues of more than US$ 14 billion. <br />
	<br />
	<br />
	Recently, the Airways unveiled plans to launch daily flights to Sao Paolo in Brazil, its first South American destination, which will start from June 2013. “We are very pleased to see the projected revenue benefits and cost synergies for both Etihad Airways and our partners tracking in line with, or even above, plan which shows once more that our partnership strategy delivers value to all parties’ shareholders,” said Hogan. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Etihad Airways’ ASKs rose by 25 per cent to 15.2 billion in the second quarter, as the fleet grew to 67 aircraft from its earlier 61. The revenue of Etihad Airways in six months this year has increased by 31 per cent to US$ 1.25 billion from US$ 957 million as compared to last year. The number of passengers has leapt up by 34 per cent to 4.89 million during the six months from 2.55 million in 2011. The increase in overall capacity and improved seat factors has contributed to the increment in the revenue, says the company.',
			'sortorder' => '559',
			'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' => '660',
			'article_category_id' => '40',
			'title' => 'Drug Drive : The Rising Business Pharmaceutical Companies In Nepal',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Sushila Budhathoki <br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<strong><br />
	</strong></p>
<p>
	<br />
	<span style="font-size:14px;"><strong>Drug Drive : The Rising Business Of Pharmaceutical Companies In Nepal</strong></span></p>
<p>
	 </p>
<p>
	<br />
	<br />
	<img alt="coverstory July 2012" border="1" height="226" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs.jpg" vspace="5" width="400" /><br />
	<br />
	Nepal’s pharmaceutical expense is at par with other South Asian countries, thanks to the increase in the number of pharmaceutical companies and their production. In 2008, the total per capita pharmaceutical expenses was US$ 6.96 while the total amount of pharmaceutical expenses stood at Rs 13.09 billion in Nepal. Mahesh Gorkhali, President of Association of Pharmaceutical Producers Nepal (APPON) says Nepali companies are growing at around 15-20 percent annually. The growth has resulted in around 42 per cent command of the market by Nepali products with strong presence and distribution network of marketers in the rural and remote areas. <br />
	<br />
	<br />
	A ‘Market Study Report on Pharmaceutical Products in Nepal’ conducted in 2011’ depicts the shining business of Nepali pharmaceutical industries. According to the report, Nepal experienced significant growth in medicine production in Asia when the growth rate was 11 per cent globally in the year 2009. Nepal obtained annual growth rate of pharmaceutical products at 19.52 per cent even ahead of India who saw 13 percent growth during the same period. According to the report, the total turnover of Nepali companies was approximately Rs 6.8 billion where the company registering lowest sales turnover was Rs 20 million and the highest at about Rs 600 million. The World Health Organization’s report ‘The World Medicines Situations 2004’ listed Nepal among 84 countries that produced pharmaceutical finished products from imported ingredients whereas India was categorized among 17 countries that had innovative capacity. <br />
	<br />
	<br />
	Pradeep Jung Pandey, President of Lomus Pharmaceutical Pvt Ltd says that Nepali companies are capable of producing some of the segments out of big variants of medicinal products. He adds, “We have the potential of increasing the market share at a fast pace.” Most of the Nepali allopathic medicines are of oral dosage forms of tablets, capsules, liquid, syrup, powder for oral suspension while topical preparation like cream, ointment and lotion are also produced. If vaccines, contraceptives, ARV (Anti Retroviral), large volume drugs and few others are excluded, Nepali companies tend to acquire big market share, say experts. Radha Raman Prasad, Director General and Chief Drug Administrator at Department of Drug Administration (DDA) states that medicines can be imported like other goods from the global market. “When the market is dictated by the Nepali industries, the foreign companies that cannot compete will automatically exit,” he says. <br />
	<br />
	<strong><br />
	Demand, Supply and Investment <br />
	</strong><br />
	<br />
	<img alt="" border="1" height="228" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs1.jpg" vspace="5" width="300" /><br />
	<br />
	Demand of Allopathic medicines is high in Nepal. There are altogether 45 Nepali companies operating in the market with 4,677 brands and thousands of products. According to the market study 2011, public expense on pharmaceuticals was Rs 2.96 billion in the year 2008. Similarly, total private expense on pharmaceutical products was Rs 10.06 billion. <br />
	<br />
	<br />
	The size of Nepali medicine market is estimated at Rs 18 billion and the Nepali companies command 42 per cent market share. Manufacturing of oral antimicrobials like penicillin, β-lactam, Non penicillin, antifungals, anthelminthic and antiviral (Simplex) is common while some are engaged in producing non-steroid pain killers, nutritional supplements, enzymes, haematinics, oral steroids, cardiovascular (heart and blood pressure), diabetes, psychiatry (mental disorder) etc. <br />
	<br />
	<br />
	Many Nepali and foreign companies are importing and supplying pharmaceutical products. Their role is significant for fulfilling the demand of various kinds of medicines in Nepal. According to DDA, 257 foreign pharmaceutical companies acquired licenses to sell their allopathic medicines in the year 2067/68. Similarly, 11,769 medicines are registered with DDA including 7,092 foreign and 4,677 Nepali products. There are altogether 1,544 wholesalers and 8,110 retailers throughout the country. <br />
	<br />
	<br />
	The estimated investment in the pharmaceutical industry of Nepal is around Rs 735 million to Rs 1.47 billion. Mahesh Gorkhali, President of Association of Pharmaceutical Producers Nepal (APPON), explores the need of high investment for the establishment of a pharmaceutical Company. He says, “For a good company mainly producing tablets, capsules and liquids, around Rs 25-30 million is required as an investment depending upon the choice of machinery equipments, building, location etc. Establishing an industry in city areas is usually costlier than in the terai or hilly regions.” Nepali industries are not API (Actual Pharmaceutical Ingredients) manufacturers; they import raw materials from other countries. The cost of the raw materials is also increasing investment in the pharmaceutical industries. <br />
	<br />
	<br />
	<strong>Emerging Pharmaceuticals <br />
	</strong><br />
	The number of Nepali allopathic companies has reached 58, according to the DDA. Altogether, 11 new allopathic companies have been registered in the FY 2068/69 whereas only two allopathic companies were registered in the previous year. A number of pharmaceutical companies have been established in different districts like Dang, Bharatpur, Sunsari, Jhapa, Bhaktapur, Kathmandu, Nawalparasi, Birgunj, Lalitpur, Bara and Parsa with investment of billions of rupees (see table). According to the DDA, pharmaceutical companies registered in the FY 2068/69 have proposed a total investment of 1.83 billion Rupees including investment from both herbal and allopathic companies. <br />
	<br />
	<br />
	<strong>Job Destination <br />
	</strong><br />
	<img alt="" border="1" height="220" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs3.jpg" vspace="5" width="300" /><br />
	<br />
	<br />
	Pharmaceutical business has employed thousands of people in pharmaceutical production, distribution and marketing. There are 4,200 medical representatives, 2,474 pharmacists and more than 13,000 professionals employed with various pharmaceutical companies. Regular human resource like managers, accountants, computer operators, receptionist, cleaners, drivers, kitchencrew, HR and admin officers also find work with these organisations. Pharmaceutical companies also provide internship to hundreds of students every year who are mostly recruited in the very companies at a later stage. Sanju Acharya, Administrative Assistant at Nepal Pharmacy Council, opines that there is a huge demand of pharmacy graduates in the pharmaceutical sector. Pharmacy professionals are of two categories; those who have graduated in Pharmacy and above up to PhD level and the ones who complete three year Diploma in Pharmacy under the Council for Technical Education and Vocational Training-CTEVT program. Pharmacy students are highly in demand at Pharmacy colleges as teachers and laboratories and hospitals as researchers or lab assistants. By law, a hospital must own a pharmacy operating 24 hours, which also provides opportunity to these students. Graduates from the Institute of Medicine (IOM) and Kathmandu University are mostly found applying for foreign colleges in search of greener pastures. Having seen the better job opportunities, many colleges have started to include pharmacy as a subject in their curriculum. There are around 16 pharmacy colleges affiliated to Tribhuvan University, Pokhara University and Purbanchal University. Together, they produce pharmacy graduates for the industry with an annual intake of around 600- 650 graduates yearly. Kathmandu University runs B Pharm, M Pharm, Pharm D and PhD programs while CTEVT runs three year Diploma in Pharmacy program at 24 different institutions, with an annual intake of 960 persons. The undergraduates are mostly utilized in community pharmacies. <br />
	<br />
	<br />
	<strong>High Competition <br />
	</strong><br />
	<br />
	The market share of Nepali companies in the urban set up is approximately 20 per cent and the rest 80 per cent in the rural markets. The reason behind this is credited to high competition among Nepali pharmaceutical companies and limited customers or prescribers, in spite of progressive marketing and promotion of the medicines. It clearly depicts that if the share of Nepali products increases in the city areas, their total share in the pharmaceutical market will experience a significant growth ultimately. However, new industry registrations too signal to follow the same trend which industrialists fear would lead to further competition. Government authorities state that the import of large volumes of drugs from other countries is due to the scarcity of varieties of medicines in the market. On the other hand, Industrialists accuse the government of importing many similar products from India which they say is also one of the reasons behind severe competition. Most of the medicines are ‘me too’ products which has compelled high competition between Nepali companies as well as the imported ones. Most pharmaceutical products are related to a particular disease or a group of diseases (therapeutic segment), and are not spread in diverse therapeutic segments. Apart from that, products like Albendazole, Amoxicillin, Azithromycin, Ciprofloxacin, Fluconazole, Paracetamol, Ibuprofen, Hyoscine, Metronidazole, Ofloxacin, etc are manufactured by around 20 to 30 companies. Similarly, around a dozen of companies produce the cardiovascular and diabetes medicines. “There should have been competition on varieties and quality of the medicines but some Nepali companies are desperately competing because of the similar products,” says freelance market researcher Rajan Raut. Similar products from foreign countries find their stand in the market even tougher as some of the Nepali products have even substituted imported products. <br />
	<br />
	<br />
	<img alt="coverstory" border="1" height="771" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs12.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	<strong>Monitoring and Inspection <br />
	</strong><br />
	<br />
	The DDA – that has 31 staffs which include 13 drug inspectors of different levels – has been facing a hard time in operating effectively. Such a limited manpower is considered a very low number to maintain the growing number of pharmaceutical industries, wholesalers and retailers. With little human resource to speak of, DDA runs different programs like marketing authorization, inspection, import control, licensing, market control, medicine advertisement and promotion, quality control and clinical trial. Quality inspection of medicines including laboratory reagents, surgical items, bandage, sutures, catheters etc are also some areas the DDA has been found lacking at. National Medicine Laboratory is the only public sector laboratory which monitors quality of the medicines through samples collected by the DDA. However, it doesn’t publicize the results publicly. Lack of good distribution practice and storage practice seems a common problem in many places. This is the reason why consumers often complain about consuming outdated medicines or shortage of essential medicines, blood, oxygen etc. Lack of proper monitoring system of pharmaceutical product is feared to grow ineffectiveness. No medicine company is found reporting its medicinal errors. As per the law, up to Rs 300,000 is to be paid by the manufacturer as compensation if medicine causes harm to the consumer. Baburam Bhattarai, President of Nepal Chemist and Druggist Association urges the need of regulating unregistered medical stores because according to him, they contribute towards creating health hazards. He says, “The government monitoring system has not been so effective. Besides, the current political situation is also fostering such business.” There is no specified division or section in DDA for WHO-GMP inspection either. Although the DDA has insisted that it has not found a single case of counterfeit drug, doctors from different districts bordering India fear its presence in the Nepali market. High prices of medicines have always been a controversial issue. DDA has fixed the actual price for up to 10 medicinal products including saline, painkillers and oral dehydrates. Shyam Adhikari, Drug Inspector at the DDA says they are looking at a mechanism to ascertain the prices of Nepal made medicines as well as the imported ones in the coming days. Recently a ‘Price Monitoring Committee’ has been formed with the participation of members from the DDA, pharmaceutical industry and consumers’ representatives. However, the companies insist that they keep the profit margin scientifically with the approval of the Government of Nepal. Pandey points that the Nepali medicines are priced either at par or a little cheaper than those of their Indian counterparts. Citing the example of a paracitamol tablet, he says, “A single unit of citamol tablet costs Rs 2 in Pakistan and India while it costs only one rupee in Nepal.” Pharmaceutical companies do not produce drugs in a large volume neither do they run with full capacity. Nepali pharmaceutical companies are using 20 to 90 per cent of their respective capacities for production and operate about 8 hours daily which is said to be the major reason behind the high production cost of the medicines. <br />
	<br />
	<br />
	<strong>Investment in Research &amp; Development <br />
	</strong><br />
	<br />
	There are only two or three companies that have been producing biological products. Most of the demand of injectables and biological drugs is fulfilled through imports. Essential medicines which require high technology are donated to Nepal by different international aid agencies from abroad. They also provide vaccines for expanded programs of immunization and medicines for the treatment of tuberculosis, leprosy, HIV/AIDS and sexually transmitted infections (STI), malaria, kala-azar and filariasis etc, for free. Nepali companies are producing around 33 per cent of essential medicines mainly producing therapeutic drugs. Industrialists are apprehensive about invest in research &amp; development (R&amp;D) because of the current political instability and law and order situation, say analysts. Most of the Nepali companies have limitations in terms of technical capability and innovation. On the other hand, foreign companies including multinational ventures have access to latest technologies and are engaged in import of medicines. However, there is no technical collaboration between the multinational ventures and Nepali companies. Industrialists too agree that Nepali pharmaceutical companies should conduct varieties of research and fulfil the demand of high tech medicines in Nepal. They accuse the government for not supporting them adequately as R&amp;D requires high investment, manpower and technology. <br />
	<br />
	<br />
	<strong>The Way Forward <br />
	</strong><br />
	<img alt="" border="1" height="200" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs4.jpg" vspace="5" width="300" /><br />
	<br />
	Many Nepali companies are manufacturing high quality products of international standards and fostering the growth of the Nepali medicine market. Zinc tablet, which is useful for treating ringworm disease in children and popular among international companies, is a product of Deurali Janata Pharmaceutical (DJP). Radha Raman Prasad, Director at DDA, seems satisfied with the quality of Nepali pharmaceutical products. He says, “Few samples have been found lacking quality in the market due to some reasons but I think the overall quality of Nepali medicines is at par with international standards.” Experts involved in the business of medicinal products suggest drug producers to work collectively towards exporting Nepali medicines. Prasad admits that export is not just limited to the quality of the drug. He says that every country has some clauses and Nepal can fulfil those clauses. Some of the Nepali companies are even trying to export drugs to Singapore and Malaysia. “We are very rich in resources for pharmaceutical products, all we need is skilled manpower and the technology. Provided these aspects, we have huge potential for export,” he adds. The much awaited National Drug Policy has been drafted by the DDA. According to Prasad, efforts have been made during the preparation of the draft to address the issues of pharmaceutical industries. He says, “The draft focuses on new areas of thrust, in comparison to the previous policy which focused on export. It has a provision of contract manufacturing for technology input, providing incentive for R&amp;D activities, manufacturing, clinical research and attracting foreign countries for R&amp;D.” From a human resource perspective, students who have studied bio pharmacy abroad have started returning to Nepal. This development promises to enable companies to operate various researches. In August 2011, DDA permitted contract manufacturing of pharmaceutical products to the manufacturing contractors owning WHO-GMP certificate and licenses of the products. The Department of Commerce and Supplies and District Administration Offices are conducting inspections on a regular basis to find out sales of expired drugs and also making their findings public. GMP and GLP (Good Laboratory Practice) standards are meant to pave the way for assuring efficacy and quality of the drugs in the international market and are expected to ease the export of the products. Currently, there are 26 companies that are manufacturing pharmaceutical products by maintaining GMP standards. The rest are also in the process of obtaining GMP as the DDA has urged all non-GMP certified companies to come under GMP certification by the end of the year. <br />
	<br />
	<br />
	<img alt="" border="1" height="457" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/drugs_11.jpg" vspace="5" width="401" /><br />
	<br />
	<strong>COVER STORY <br />
	</strong><br />
	<br />
	<strong>‘The Growth of Nepali Pharmaceutical Industries is Quite Appreciable’ <br />
	</strong><br />
	<img alt="" border="1" height="330" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/BABURAM-BHATTARAI.jpg" vspace="5" width="300" /><br />
	<br />
	<strong>BABURAM BHATTARAI <br />
	President <br />
	Nepal Chemist and Druggist Association <br />
	(NCDA) <br />
	<br />
	</strong><br />
	<br />
	<strong>How do you see the growth of Nepali pharmaceutical industries in recent times? <br />
	</strong><br />
	<br />
	The growth of Nepali pharmaceutical industries in recent time is quite appreciable. Around 42 per cent home demand is fulfilled by them so it can be considered satisfactory. I think the Nepali medicines are doing good business because the products are qualitative and the demand is increasing on a regular basis. I see a golden future for Nepali pharmaceutical products. <br />
	<br />
	As far as my knowledge is concerned, the level of consumption for most of the products made in Nepal is satisfactory and so is their supply system. However, most of the companies are producing the same types of medicine which has created unhealthy competition. <br />
	<br />
	<br />
	<strong>How is the production and export-import business of pharmaceutical products in Nepal? <br />
	</strong><br />
	<br />
	The history of allopathic medicine in Nepal is less than 100 years old. Medicine was used with the start of the modern medical system and during that time, pharmacy products were imported from different countries while such services were limited to only the big cities. The situation has changed now and we have many pharmaceutical companies established in our own country. Imported as well as home grown products are available even in the remote areas of the country today. However, it has not been smooth yet and the mishandling and misuse of drugs is a great threat. <br />
	<br />
	<strong><br />
	Counterfeit drugs is said to be one of the biggest challenges faced by the pharmaceutical industry. What is NCDA doing towards it? <br />
	</strong><br />
	<br />
	I agree with this statement to some extent. Basically, there are two reasons behind the availability of counterfeit drugs. The first one is that we share a open border with India and the second is that there are so many unregistered medical stores all over the country. The government monitoring system has not been effective enough. I don’t think that the NCDA member firms are involved in the supply of such medicines. The government should regulate these unregistered medical stores and bring them under the purview of the legal system. NCDA, on its part, is planning to release the list of registered medical stores and products available at these stores, on its website. It is always ready to support government initiatives to control the availability of counterfeit drugs. <br />
	<br />
	<br />
	<strong>Consumers often complain that the medicine prices vary from pharmacy to pharmacy. It is also said that the margin of profit is kept very high in pharmaceutical products. What do you have to say about such practices? <br />
	</strong><br />
	<br />
	I cannot agree with your statements. NCDA was established with the mission to supply qualitative, effective and safe drugs at affordable prices and we are always conscious regarding the uniformity of medicine prices. However, there may be some misuses from unregistered stores despite all our efforts and commitments. NCDA is committed to endorse the sale of medicines at their justified prices. However, if there are any complaints on account of price manipulation, please do inform to any of our NCDA branches so that we can regulate such pharmacies. <br />
	<br />
	<br />
	As for the margin of profit being high in pharmaceutical products, this is nothing but plain rumor. We are keeping the profit margin scientifically with the approval of the Nepal Government. <br />
	<br />
	<br />
	<strong>A great amount of medicines are sold on a daily basis without the doctors’ prescriptions. How risky is this for public health? <br />
	</strong><br />
	<br />
	This is a serious question that you have brought up. We all are quite aware about the health service standards in our country .We have a very limited numbers of doctors and that too, they are available only in the urban areas. Therefore, scores of villagers do not have access to services provided by doctors. This explains the situation of no prescriptions where there are no doctors. You have to acknowledge the fact that the patients have to get medicines anyway. Nowadays, the paramedics (HA, CMA &amp; ANM) are dispensing medicines in the remote areas. The government is not bothered about this problem and many serious health hazards occur due to the state’s apathy towards health services. <br />
	<br />
	<br />
	<strong>The shortage of general medicines in rural areas often inconveniences many families in Nepal. What’s your take on this? <br />
	</strong><br />
	<br />
	Although our business is a service business, there is a profit motive as well. The few pharmacy assistants and professionals that we have in the country confine themselves to the densely populated areas because they want to do good business. However, there are so many remote areas where there is no storage of general medicines but the problem is that the pharmacy dispensers are not available in such areas. I have also repeatedly drawn the attention of the concerned authorities to run orientation training targeting these areas so that the problem of dispensing medicines can be solved to a large extent. <br />
	<br />
	<br />
	<strong>How wealthy are we in terms of human resources especially in the production, marketing and distribution of pharmaceutical products? <br />
	</strong><br />
	<br />
	As far as the availability of human resources is concerned, let me assure you that many pharmacists and pharmacy assistants are produced every year. The number of pharmacy colleges is also increasing. Most of the pharmacists are employed in industries and academics whereas the pharmacy assistants are engaged in dispensaries. But the tragedy is they are not available in the remote areas. <br />
	<br />
	<br />
	<strong>The Nepali pharmaceutical industries asked the government to stop importing Indian drugs sometime ago. Can it be considered reasonable in a liberal market economy? <br />
	</strong><br />
	<br />
	Nepal is a small country in comparison to our neighbors and the market of any product is limited. It is not bad to promote indigenously produced medicines until our economy is competitive enough to export. Billions of rupees have been invested in the pharmaceutical industries. I think it’s the duty of the government to support these companies by whatever means possible. <br />
	<br />
	<br />
	<strong>What is the possibility for exports of Nepali drugs abroad? What are the challenges in this regard? <br />
	</strong><br />
	<br />
	I don’t see any possibility of Nepali medicines for export in the current context. Even though all the companies of Nepal follow the WHO GMP standard, different countries may have different technical standards. The private sector effort to export medicines may not be an effective one. The government initiation is the primary requisite and a must to realize export efforts. <br />
	<br />
	<br />
	<strong>COVER STORY <br />
	<br />
	<br />
	‘The Overall Quality of Nepali Medicines is at Par with International Standards’ <br />
	</strong><br />
	<br />
	<img alt="" border="1" height="330" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/RADHA-RAMAN-PRASAD.jpg" vspace="5" width="300" /><br />
	<br />
	<strong>RADHA RAMAN PRASAD <br />
	Director General <br />
	&amp; Chief Drug Administrator <br />
	Department of Drug Administration <br />
	</strong><br />
	<br />
	<br />
	<strong>How do you see the growth of Nepali pharmaceutical industry in recent times? <br />
	</strong><br />
	<br />
	New industries are entering into the market but most of them are producing ‘me too’ drugs. The competition is heightening among such kind of drugs. The trend of new industry registration shows that producers are willing to produce similar kind of products that already exist in the market. Such a trend is more common than producing vital drugs and competing with imported products which may help reduce imports and market share of imported drugs. Although new industries have taken industry establishment reference letter for producing large volume drugs, further progress is not seen in the actual establishment of industries. It is very important to produce large volume drugs with quality but little progress has been made towards it. Even though producers are promising to do it, it has not happened till date. <br />
	<br />
	<strong><br />
	New industries are being established every year. Do you see potential in them to make the country self sufficient in drugs and reduce imports? <br />
	</strong><br />
	<br />
	It is not that they do not have the capacity to produce to the extent of self sufficiency but it is limited to specific drugs. The environment for producing numerous drugs to the extent of self sufficiency has already been created but not for all medicines. Nepali companies have a market share of 43 per cent. If vaccines, contraceptives, ARV (Anti Retroviral), large volume drugs and few others are excluded, Nepali companies will have a bigger market share. Some companies have an almost equal market position as Indian companies. Ethical promotions and marketing strategies have helped them create a niche in those sectors. Nepali drug industries have their presence in almost every part of the country. <br />
	<br />
	<br />
	<strong>Around 60 per cent of the drugs market is covered by the foreign companies. How can the share of Nepali industries be increased? <br />
	</strong><br />
	<br />
	The consumers of medicines are mostly the prescriber groups. So, the confidence of the doctors and prescribers needs to be won with ethical marketing and by offering qualitative drugs. This will help to increase the market share. However, only over-the-counter sales and promotion through pharmacies cannot deliver good results compared to ethical promotions. <br />
	<br />
	<br />
	<strong>Although imported drugs are said to be expensive than locally produced ones, why aren’t Nepali medicines preferred by the prescribers? How can Nepali products be promoted? <br />
	</strong><br />
	<br />
	It is necessary to look minutely into actual pricing. Some local drugs may be cheaper but it is difficult to say that products from established brands are actually cheaper. Such products are priced similar to the imported drugs. Quality assurance is the most important factor for promoting Nepali industries. Numerous producers and their associations as well as the DDA have moved towards quality assurance through various measures like complying with the WHO GMP standards. All the stakeholders are moving ahead keeping in mind quality as their central motive. It is a matter of satisfaction that Nepali industries are committed to quality assurance and they too are producing international standard drugs. Even though few samples have been found lacking quality in the market due to some reasons, I think the overall quality of Nepali medicines is at par with international standards. Many industries are now shifting to new locations, upgrading their technologies and carrying out renovation of their production units. Once quality is promised to the consumers, the market share will definitely increase. <br />
	<br />
	<br />
	<strong>It is often said that substandard medicines are being imported and expired medicines sold in pharmacies. What is your take on this situation? <br />
	</strong><br />
	<br />
	At times, it’s not only the drugs imported from India but also the Nepali drugs that are found to be below standard. However, we cannot generalise the situation and say that all products lack quality. There have been cases like discovering some particles on tablets and solidified dry syrup but these are exceptions. We have not found the entire batch of a particular medicine failing in case of one or two samples that are found defective. If the temperature is not adjusted as per the requirement during storage, some medicines change colour naturally over time. A pharmaceutical company produces drugs which is transferred to distributors, then to retailers and finally to the consumers. If the quality is not assured in the supply chain, some complications may arise despite the producer maintaining optimum quality. The producers are slowly getting conscious about it and the DDA too is committed to move towards this direction. <br />
	<br />
	<br />
	Regarding the sales of expired drugs, it is very important to maintain a good pharmacy and dispensing practice. The pharmacy workers must properly look at the prescriptions and scrutinise the medicines before selling them and also give proper information to the buyers. When this system is not practiced, there is a chance of expired drugs getting sold. Substandard and expired drugs must be filtered at the time of sales. At present, there are inspections carried out by the Department of Commerce &amp; Supplies and District Administration Offices to detect sales of expired drugs. Such activities have definitely brought a lot of awareness among consumers and also controlled such incidences. <br />
	<br />
	<br />
	<strong>Counterfeit drugs is also said to be one of the biggest challenges faced by the industry. What is DDA doing towards it? <br />
	</strong><br />
	<br />
	We have not found counterfeit drugs as of now. It’s true that we have found some medicines that are not registered here but they are not counterfeit in the true sense of the term. Such unregistered drugs are confined to around four-five types which have high difference in their prices such as Ciprofloxacin, Omeprazole and some aphrodisiac drugs. We have been carrying out awareness campaigns asking customers to mandatorily take bill on the purchase of drugs which will prevent buying of unauthorised drugs. A conscious citizen must as for bill on purchase of medicines and also seek information about the medicines. <br />
	<br />
	<br />
	<strong>What is the level of competition of Nepali pharmaceutical companies among themselves as well as with the foreign companies? <br />
	</strong><br />
	<br />
	The competition has always been there but it should now focus on quality while competing with ‘me too’ drugs in the market. Earlier, cardiac medicines were not produced within Nepal but now we have them. We also did not have the doctors’ confidence about higher antibiotics but now they prefer Nepali products. These are definitely very good signs. We have been monitoring and conducting inspection of Nepali industries, overseeing their quality and standard etc so we encourage using Nepali drugs with confidence. This confidence has also led Nepali industries beginning to tap the foreign market in recent times. <br />
	<br />
	<br />
	<strong>Raw materials as well as finished drugs are being imported at present. Which one is beneficial for our market situation? <br />
	</strong><br />
	<br />
	The Nepali industries are compelled to import raw materials to produce drugs here because we are not API (Actual Pharmaceutical Ingredients) manufacturers. Therefore, it is necessary to import raw materials. In the current global context too, there is no base to deny import of any products. When the market is dictated by the Nepali industries, the foreign companies that cannot compete will automatically exit. <br />
	<br />
	<br />
	If Nepali companies can produce drugs here, the human resource can be rightly utilised. The availability of human resource is cheaper in Nepal than anywhere else. Qualified human resource is being produced within the country and at the same time, semiqualified human resource is equally available. We have a condition to import quality raw materials at competitive prices. It also creates employment not only in the production line but also in the marketing of products. The industries also pay taxes to the state so from that perspective, local industries must be promoted. <br />
	<br />
	<br />
	<strong>It is said that there is huge potential for export of medicines to India along with other markets. How much have we cashed in on this potential? <br />
	</strong><br />
	<br />
	That potential has not been adequately explored as of now. A few industries that have reached a certain level of success in the local market have started looking towards those markets. All the drug producers must collectively move towards this direction to explore the potential. <br />
	<br />
	<br />
	<strong>COVER STORY <br />
	<br />
	</strong><br />
	<strong>‘We have Gained Trust from the Consumers because of our Quality Products’ <br />
	<br />
	<br />
	<img alt="" border="1" height="214" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/MAHESH-GORKHALI.jpg" vspace="5" width="300" /><br />
	<br />
	MAHESH GORKHALI <br />
	President <br />
	Association of Pharmaceutical <br />
	Producers of Nepal (APPON) <br />
	</strong><br />
	<br />
	<br />
	<strong>How do you see the growth of Nepali pharmaceutical industry in recent times? What is the kind of investment required to establish a pharmaceutical industry at present? <br />
	</strong><br />
	<br />
	As per an estimate, we are growing at around 15 to 20 per cent annually. The cost of establishing a pharmaceutical industry in the country generally depends on the number of segments that the investors target to operate with. Pharmaceutical industries cover different segments like – tablets, capsules, liquids, injectables etc. If an industry tries to cover all these segments, high investment is required. At the same time, low investment can enable an industry to operate with a single segment. As per our calculation, anywhere from Rs 25 to 300 million investment is required for a company producing tablets, capsules and liquids depending upon the choice of the machinery equipments, building, location etc. Establishing an industry in city areas is usually costlier when compared to the terai or hilly region. <br />
	<br />
	<br />
	<strong>How is the production and export-import business of pharmaceutical products doing in Nepal? <br />
	</strong><br />
	<br />
	There are altogether 45 Nepali companies operating in our market. Investors generally produce materials which they can sell even if they have a high production. There is a wide variant of medicines available in the market and we are capable of producing some of these, for example, Paracitamol tablets which are popular as citamol in Nepali households. To meet the remaining demand, we import a good amount of medicines from India, Bangladesh and some other countries. The export potential of Nepali medicines has not been tapped as yet. Nepali pharmaceutical companies occupy around 40-45 per cent market share while the rest is of foreign companies. Our companies can increase their market share only if we could expand our businesses massively. If we do not want to be contended only in the national market, we must grow and focus on exports. <br />
	<br />
	<br />
	<strong>How favorable is the government’s policy regarding the pharmaceutical industry? <br />
	</strong><br />
	<br />
	We don’t find a clear-cut policy of government for the development of Nepali pharmaceutical industries. As such, the pharmaceutical market is rapidly growing internationally and we are obliged to introduce and produce newer medicines or molecules to survive in the market. Since we lack manpower in developing newer molecules, we try to import them as soon as they are developed. Department of Drug Administration (DDA) under the Ministry of Health regulates our companies but it usually hesitates to provide a license whenever we apply to import a new molecule. It says that the molecule is not mentioned in Pharmacopeia - a book where every medicine is featured. Actually, medicines are featured in Pharmacopeia sometime later after the invention. It’s the responsibility of the government to either perish or nourish the pharmaceutical sector as the citizens of this country have the right to have proper medications. By permitting to import newer molecules, providing incentives or soft loans and declaring tax holidays for some years will definitely create good environment for the pharmaceutical sector. The government must also act as a responsible body by addressing problems such as the shortage of powerhouse, in consultation with the stake holders. I think that the Ministry of Health has so many responsibilities and hence, they may not be able to look after the manufacturing industries properly. Nonetheless, I believe they will formulate some good policies in the near future to encourage new investors when they realize our potential as a growing industry. <br />
	<br />
	<br />
	<strong>What are the challenges of the Nepali pharmaceutical industry in meeting the demand of pharmaceutical products in the market? <br />
	</strong><br />
	<br />
	Around 250 companies are involved in importing medicines from other countries so the biggest challenge we have is the faith of the consumers on Nepali products. The pharmaceutical market normally grows with the increase in the prescriptions or the number of the prescribers. We have gained that kind of trust from our consumers because of the quality products we deliver. All the leading doctors and medical experts prescribe Nepal made products which means the main challenge is already taken care of. Another challenge is to introduce newer molecules. <br />
	<br />
	<br />
	We need some lab testing which are often tedious, time consuming and expensive. We need to maintain refresh standard for which we don’t have the facilities but that can be procured. Furthermore, we have to develop our human resources including the marketing professionals so we are conducting different trainings and workshops to improve their capabilities. <br />
	<br />
	<br />
	<strong>What is the benefit of importing pharmaceutical products from India? What kind of competition have domestic factories been facing with hundreds of Indian products and companies in the domestic market? <br />
	</strong><br />
	<br />
	While moving from illness to wellness in the case of human health especially, pharmaceutical products have proved to be one of the essential elements in curing diseases. However, we don’t produce all kinds of medicines. For instance, we don’t produce saline water which is considered as an urgent medication for many diseases. We import it mainly from India as medicines such as this are beneficial to human health. <br />
	<br />
	<br />
	Competition between companies is natural in every business and pharmaceutical industries are no exception. Competition with importing companies is ethical in our business. However, there seems to be a fierce competition between the Nepali companies because of similar medicinal products and limited customers. Everybody wants to promote his own brand and the more number of companies, the more number of brands are there. <br />
	<br />
	<br />
	<strong>Although imported drugs are expensive than locally produced ones, why aren’t Nepali medicines prescribed much? <br />
	</strong><br />
	<br />
	This is untrue as majority of the doctors are prescribing our medicines. This is the reason why we are having 40- 45 per cent market share despite having competition from so many foreign companies. There has been a good promotion of our medicines and the doctors prioritize them whenever they prescribe the medicines to the patients. <br />
	<br />
	<br />
	<strong>How wealthy are we in terms of human resources especially in the production, marketing and distribution of pharmaceutical products? <br />
	</strong><br />
	<br />
	Initially, we had a real problem with human resource be it the marketing or production areas. It was very hard to train young graduates especially those without a science background. Thus the promotion of the products used to be a difficult task in the past. <br />
	<br />
	<br />
	In production also, there were not enough graduates who could earlier meet our criteria. However, there are 17 - 18 colleges now with pharmacy as a major subject. They are producing a good number of bachelors every year that can be utilized in pharmaceutical industries. We don’t have scarcity of such manpower now. <br />
	<br />
	<br />
	However, we don’t have quality manpower who could import newer molecules from foreign countries. Good companies have been providing trainings for their employees and sending them to different countries like Japan, Bangladesh and India for their capacity enhancement. They are improving and we hope that we will produce the required manpower for this sector as well. <br />
	<br />
	<br />
	<strong>It is said that the margin of profit is kept very high in pharmaceutical products. What do you have to say about that? <br />
	</strong><br />
	<br />
	Even though it seems so, it is not true. Actually, certain products have really high margins mainly because of the high expenses involved in their production. To produce a single medicine, we import different raw materials including chemicals and packaging materials. Besides, producing quality medicine is a very lengthy and time consuming process. There are other costs involved too which make medicines more expensive, for example, the marketing aspect. Whatever is the margin, the fact is that the product must be sold because without the sale of a product, there can be no profit. <br />
	<br />
	<br />
	<strong>It is said that there is a huge potential for export of medicines to India along with other markets. How much have we cashed in on this potential? <br />
	</strong><br />
	<br />
	Let me give you an example when my company used to export medicines in India a few years ago. We had applied to the Indian authorities for exporting medicines to which they agreed and we started to send our medicines. However, despite having all the certification and documents of our products, they would put our stock in their quarantine office once it reached Raxaul in India. They would say that approval can be provided only after some lab testing but by the time they did so, it would be already six months late. Another three months would be spent for lab testing so it’s only after nine months that we would be able to get the approval to supply our medicines in the Indian market. The same process would apply for each consignment. After all this, the Indian retailers would not agree to keep medicines having less than six months of validity. It continued for two years and we had a business of Rs 50-60 million only. After two years, we could not undergo the criteria once they applied a new system for Nepali companies. It became costlier and that is when we stopped exporting our products. However, we are again targeting India for the expansion of our products and hopefully, we will be successful in our endeavour. <br />
	<br />
	<br />
	<strong>Raw materials as well as finished products are being imported at present. Is it beneficial for our market? <br />
	</strong><br />
	<br />
	Yes, it is. We cannot produce medicines without raw materials and finished products since we don’t have the big plants to produce chemical and other essential materials. We don’t need to produce raw materials ourselves because of the limited market we have. Unless we expand our market, we can continue to import these items. <br />
	<br />
	<br />
	<strong>COVER STORY <br />
	</strong><br />
	<br />
	<strong>‘Maintaining GMP and GLP Standards will give Credibility to our Products Internationally’ <br />
	<br />
	<br />
	<img alt="" border="1" height="204" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/MOHAN-PRASAD-AMATYA.jpg" vspace="5" width="300" /><br />
	<br />
	MOHAN PRASAD AMATYA <br />
	Chief <br />
	National Medicine Laboratory <br />
	<br />
	<br />
	</strong><br />
	<strong>What is the major function of the National Medicine Laboratory? <br />
	</strong><br />
	<br />
	Our main objective is to ensure that safe and effective medicines are available in the Nepali drug market. Though it is the Department of Drug Administration (DDA) that awards license to pharmaceutical factories, it is our responsibility to test and evaluate the standard of their laboratories and drugs and refer them for the registration. Factories should obtain market license for each of their products. We develop Reference Standard and make it available to the pharmaceutical companies and laboratories. We also inspect retail and wholesale pharmacies to check the quality of drugs. The price monitoring of the marketed drugs is within our scope of work and we deploy drug inspectors for this task. They visit the market on a regular basis, purchase drugs from the pharmacies and bring it to us. We inspect quality, composition, packaging and every other detail of these drugs. If such drugs are found below the standard, we report it to the DDA which recalls these products from the market. Similarly, we visit laboratories and inspect products of foreign countries before importing them to Nepal. <br />
	<br />
	<br />
	<strong>Pharmaceutical companies also have their own laboratories. How good are they? <br />
	</strong><br />
	<br />
	A pharmaceutical company must set up its own laboratory. We visit their laboratories and conduct a thorough inspection. Aspects like hygiene of the lab and precautions taken for the safety of its manpower, availability of equipments and trained manpower, location of the lab and its space, structure of the building, availability of water and other resources are taken into account while giving approval to the laboratories for production. We visit them regularly even after the approval Therefore, we must say that existing labs have been maintaining the required standard. Of course, there is a lot of scope for improvement and it’s a continuous process. All in all, they are good. <br />
	<br />
	<br />
	<strong>Out of 49 pharmaceutical factories operating in Nepal, only 26 have been producing pharmaceutical products under the World Health Organisation’s (WHO) Good Manufacturing Practice (GMP). Why is this number so low? <br />
	</strong><br />
	<br />
	It’s been about 8 years that Nepal became a member of the WTO. However, our pharmaceutical companies were established long before we got associated with the WTO. At that time, our aim was to encourage people to invest in the pharmaceutical sector so that the country can gradually substitute imported medicines. The procedure to obtain operating licenses was not that strict. Now that the country has entered an agreement with the WHO to maintain its GMP standard, we could not ask them to upgrade their laboratories and manufacturing units overnight. It requires huge capital for a company to be at par with the international GMP standard. The DDA has been asking the existing factories to upgrade themselves time and again by allowing a certain time-frame to them. In fact, the DDA has directed all existing pharmaceutical companies to upgrade themselves by the end of this year. Because of this provision, many companies have applied for GMP and few of them have already received the certification. However, there are still some companies that have not applied for this process. I believe the DDA will take adequate measures against such factories in the future. <br />
	<br />
	<br />
	<strong>Have all the pharmaceutical companies been maintaining Good Laboratory Practices (GLP)? <br />
	</strong><br />
	<br />
	It is very essential to maintain GLP to establish a pharmaceutical industry. Companies that do not maintain GLP are not allowed to begin production. Before any pharmaceutical product is produced, we check whether the laboratory has used standard raw material and put the lab in the suitable location and purchased good quality machines or not. When the product is made, we analyse its composition, packaging, punching, amount of active drug in the medicine and its storage. These aspects fall under GLP and we make sure that factories are up to the mark on each of these aspects before granting it permission to operate. To make our existing factories concerned about GLP, we conduct trainings on this aspect regularly. <br />
	<br />
	<br />
	<strong>What special benefits will we have by producing pharmaceutical products in line with the WHO’s GMP and GLP guidelines? <br />
	</strong><br />
	<br />
	Maintaining GMP and GLP standards will give credibility to our drugs in the international market. It will eventually pave way for the export of our products. Though there are only 26 pharmaceutical manufacturing companies that have been producing products maintaining GMP standard, about five companies are in the process to get the certification. We will be visiting their manufacturing plants and the laboratories to refer for the certification. <br />
	<br />
	<br />
	<strong>So, we do have an opportunity to export our products. <br />
	</strong><br />
	<br />
	Export is not just limited to quality of the drug. Every country has a specific policy about importing drugs from another country. If our country can fulfil those clauses, we won’t have problem in exporting our products. Even India that has been exporting its products to almost all corners of the world, is willing to import drugs from us. But it has set some clauses regarding drugs import. If we can fulfil these clauses, India can be a potential market for our medicines. Therefore, export is more related to the policy of a specific country. Some of our companies are trying to export drugs to Singapore and Malaysia as well. We are very rich in resources for pharmaceutical products. All we need is skilled manpower and the technology. Provided these aspects, we have huge potential for export. <br />
	<br />
	<br />
	<strong>What sort of drugs are we strong in and where do we still need to do research? <br />
	</strong><br />
	<br />
	The domestic production has been able to fulfil 60 per cent of the current demand. For the remaining 40 per cent, we have to be dependent on imports. We are strong in therapeutic drugs but we still have to be dependent on imports for injectable drugs and biological products. It takes a huge capital and expert manpower to produce such drugs. The labs need to be sterilised and made aseptic to produce these medicines. Even the building has to be designed in a specialised way for such drugs. There are only two or three companies that have been producing biological products. Most of the demand for injectable and biological drugs is fulfilled through imports. <br />
	<br />
	<br />
	<strong>What is the status of human resource in the pharmaceutical sector? <br />
	</strong><br />
	<br />
	In the last few years, pharmaceutical sector has been witnessing a growth in the quantity of trained manpower. The existing four universities of our country have been producing manpower for this sector. Kathmandu University (KU) has been operating classes of pharmacy at the Bachelor, Masters and the Doctorate levels. Tribhuvan University (TU) also runs a bachelor level programme while Purbanchal Univeristy (PU) has given affiliation to about 19 colleges to operate pharmacy classes. Similarly, Pokhara University also has a Bachelor of Pharmacy programme. So, around 500 students graduate in this sector annually. <br />
	<br />
	<br />
	<strong>Where do these graduates get job placement? <br />
	</strong><br />
	<br />
	A large number of students with Bachelor degree in pharmacy open their own pharmacies while some others work in pharmaceutical factories, laboratories and hospitals. A few of them pursue a teaching career but most graduates from the Institute of Medicine (IOM) and Kathmandu University go abroad in search of greener pastures. The flow of application for establishing pharmaceutical factories was high a few years back but the present political situation has been a hindrance in establishing new factories. Therefore, the graduates find the overseas market better for greater exposure. If the country could emerge from the present political turmoil, they too can find employment opportunities in their own country. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-10-10',
			'keywords' => '',
			'description' => 'Nepal’s pharmaceutical expense is at par with other South Asian countries, thanks to the increase in the number of pharmaceutical companies and their production. In 2008, the total per capita pharmaceutical expenses was US$ 6.96 while the total amount of pharmaceutical expenses stood at Rs 13.09 billion in Nepal',
			'sortorder' => '558',
			'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' => '659',
			'article_category_id' => '52',
			'title' => 'Tunnel To Prosperity',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<br />
	<strong><img alt="From the editor" border="1" height="262" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/editoiral.jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	The commercial viability of Kathmandu-Kulekhani-Hetauda road tunnel is unquestionably attractive given the traffic pressure it is likely to have. <br />
	</strong><br />
	<br />
	Nepal Infrastructure Development Company, a private sector initiative led by Immediate Past President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has shouldered the task of opening up the Kathmandu-Kulekhani-Hetauda road tunnel. This tunnel would substantially reduce the length of the road connecting Kathmandu with Hetauda to 50 km. <br />
	<br />
	<br />
	Fully functional roads that now connect Kathmandu with Hetauda are much longer. The most used Kathmandu- Mugling-Narayanghat-Hetauda road’s length is 224 kilometers (kms) while the largely discarded Tribhuvan Highway is 133 kms. The proposed fast track will be about 80 kms long and would open at a point of some 20 kms east of the main town of Hetauda. However, the distance with this tunnel would be only about 50 kms and the total travel time from Kathmandu to Hetauda will reduce to barely one hour. The pace of progress in the work to construct the tunnel has been more than impressive; demonstrating the advantage that a private sector led project can have even in infrastructure development aspect. The Company has also been a first test case of much talked about Public-Private Partnership and serves as the actual implementation of BOOT (Build, Operate, Own, and Transfer) model through a project entirely financed domestically. This also sets an example of how a large sized investment of about Rs 20 billion for this project alone could be generated within the country if a viable project is chosen and all users and stakeholders are made effective owners of the project. <br />
	<br />
	<br />
	Since the company got license in the third week of May 2012 from the government, it has created a tight timeline to complete the Detailed Project Report (DPR) by the end of November. The commercial viability of the tunnel is unquestionably attractive given the traffic pressure it is likely to have. This model also constitutes a rationale that the carrying capacity of the tunnel should also be fixed by the research on existing and potential increase in traffic flow between Hetauda and Kathmandu. <br />
	<br />
	<br />
	Most importantly, without upgrading the total stretch of the Balkhu-Pharping- Kulekhani-Hetauda road, only the proposed tunnel of mere three-kilometer length is unlikely to give any substantial benefit to the national economy and return to the investors. Had the entire road length been part of this project, it would only have delivered results as aspired. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-15',
			'modified' => '2012-10-10',
			'keywords' => '',
			'description' => 'Nepal Infrastructure Development Company, a private sector initiative led by Immediate Past President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has shouldered the task of opening up the Kathmandu-Kulekhani-Hetauda road tunnel. This tunnel would substantially reduce the length of the road connecting Kathmandu with Hetauda to 50 km.',
			'sortorder' => '557',
			'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) 6 => array(
		'Article' => array(
			'id' => '658',
			'article_category_id' => '60',
			'title' => 'Etihad Buys Stakes In Virgin Australia',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="edihad" border="1" height="155" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/etihad.jpg" vspace="5" width="326" /><br />
	<br />
	<br />
	Etihad Airways, the national airline of the United Arab Emirates, has acquired a 3.96 per cent stake in Virgin Australia Holdings. According to a press statement, the stake has been built over recent weeks, through purchases in the open market. <br />
	<br />
	<br />
	The press statement reads, “Etihad Airways believes that this equity investment in Virgin Australia’s domestic operations significantly strengthens the 10-year strategic partnership forged by the two carriers in August 2010. It will enrich the commercial benefits which the alliance already provides for both airlines, as well as increasing the benefits to Australian consumers and visitors to Australia.” <br />
	<br />
	<br />
	Together, Etihad Airways and Virgin Australia operate 24 flights a week between Abu Dhabi and Australia and passengers have access to a combined network of more than 150 destinations, says the statement. Etihad Airways began flying to Australia in March 2007 when it launched services to Sydney. Melbourne and Brisbane were quickly added thereafter. Nearly 2.2 million passengers have been carried between Abu Dhabi and these three cities in the last five years. <br />
	 </p>',
			'published' => true,
			'created' => '2012-08-13',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Etihad Airways, the national airline of the United Arab Emirates, has acquired a 3.96 per cent stake in Virgin Australia Holdings. According to a press statement, the stake has been built over recent weeks, through purchases in the open market.',
			'sortorder' => '556',
			'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) 7 => array(
		'Article' => array(
			'id' => '657',
			'article_category_id' => '60',
			'title' => 'Qatar Airways CEO Al Baker On IATA Board',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="qatar" border="1" height="129" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/qatar1.jpg" vspace="10" width="400" /><br />
	<br />
	<strong>Qatar Airways CEO Akbar Al Baker has been voted onto IATA, the Board of Governors of the global aviation industry body. <br />
	</strong></p>
<p>
	 </p>
<p>
	Qatar Airways Chief Executive Officer Akbar Al Baker has been voted onto the Board of Governors of the global aviation industry body, International Air Transport Association (IATA). Al Baker was selected by fellow airline executives attending IATA’s annual World Air Transport Summit in Beijing this week. <br />
	<br />
	<br />
	His is a newlycreated position to increase representation for Middle East carriers on the revamped 10-member IATA board. Qatar Airways has also announced an engaging social media photo contest titled ‘Reflections’. Through this contest, the airline is giving away attractive prizes – Business and Economy Class air tickets and a total of 1.6 million Privilege Club Qmiles. The airline is inviting up to eight photos under the categories namely – Vibrant Cultures, Magnificent Cities, Breathtaking Nature and Exciting Journeys. <br />
	<br />
	<img align="left" alt="qatar" border="1" height="227" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/qatar(3).jpg" style="width: 224px; height: 227px;margin:10px;padding:10px;" vspace="10" width="224" />“Professional and amateur photography enthusiasts may upload photos, share them across their social network and invite support from their friends, family and followers in the form of votes. They can also view, vote on, and share photos submitted by other contestants to accumulate points. Each point they thus earn converts into a lucky draw entry,” reads the press release. Prizes include 10 Business and 50 Economy Class tickets. Qatar Airways Privilege Club programme is offering a mammoth 1.6 million Qmiles to be shared among the winners. <br />
	<br />
	<br />
	Qatar Airways has also enhanced its operations with the acquisition of comprehensive aircraft recovery equipment – the first airline in the world to own the complete state-ofthe- art kit. There are just 11 complete kits globally, but parts within each kit are owned separately by individual airlines and airports worldwide. At an investment of US$3.2 million, the equipment enables the airline’s Doha hub to be capable of recovering equipment parts of any aircraft type following an incident which renders an aircraft non operational. <br />
	<br />
	<br />
	In the span of just two weeks, Qatar Airways has expanded passenger services to Iraq with the launch of its second destination in the country –the capital city of Baghdad. The Doha-based airline is operating four-flightsa- week non-stop on the Baghdad route. The move came just two weeks after Qatar Airways launched flights, also fourtimes- a-week, to the northern Iraqi city of Erbil. <br />
	 </p>',
			'published' => true,
			'created' => '2012-08-13',
			'modified' => '2012-12-18',
			'keywords' => '',
			'description' => 'Qatar Airways CEO Akbar Al Baker has been voted onto IATA, the Board of Governors of the global aviation industry body.',
			'sortorder' => '555',
			'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) 8 => array(
		'Article' => array(
			'id' => '655',
			'article_category_id' => '60',
			'title' => 'Oman Air Begins  Muscat-Tehran Service',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p class="MsoNormal">
	<img alt="oman airways" border="1" height="167" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/oman.jpg" vspace="5" width="466" /><br />
	<br />
	<br />
	<span style="font-size:24.0pt;line-height:115%;font-family:
">&nbsp;</span></p>
<p class="MsoNormal">
	<strong><span mso-bidi-font-family:="" style="font-size:
12.0pt;font-family:">The airline recently introduced complete cell phone and</span> <span style="font-size:12.0pt;line-height:115%;font-family:
">Wi-Fi connectivity aboard Oman Air’s Airbus A330 aircraft.</span></strong></p>
<p class="MsoNormal">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal;">
	<strong><span style="font-size: 24pt; line-height: 115%; font-family: ">&nbsp;</span></strong><br />
	<span mso-bidi-font-family:="" style="font-size:
41.0pt;font-family:">O</span><span style="font-size: 10pt;">man Air is set to launch a new daily service between Muscat and the Iranian capital Tehran from September 1. Flights will depart Muscat for Tehran at <br />
	200hrs (3 days per week) and 0930hrs (4 days per week) and return from Tehran at 0710hrs (3 days per week) and 1340hrs (4 days per week) - all times local - offering good&nbsp; connections to onward destinations within the Oman Air’s network. <br />
	</span></p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal;">
	<span style="font-size: 10pt;">According to the company’s press statement, the new Muscat-Tehran route will be operated using Oman Air’s new Embraer 175 regional jets, which is said to offer superb levels of comfort in both Business and Economy Classes. “The addition of the new service to Tehran continues the rapid growth of Oman Air over the last 30 months,” says the company.&nbsp; <br />
	</span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
normal;mso-layout-grid-align:none;text-autospace:none">
	<span style="font-size:
10.0pt;font-family:"><br />
	</span></p>
<p class="MsoNormal">
	<span style="font-size:
10.0pt;font-family:">The airline has also recently introduced a range of new products and services, including the complete cell phone and Wi-Fi connectivity aboard Oman Air’s Airbus A330 aircraft.The statement further claims, “Over the same period, revenues and passenger numbers have increased dramatically, with customers showing their approval of the airline’s combination of quality and value by not only booking further flights, but also voting for Oman Air in a series of awards.” Oman Air has bagged the ‘Service Excellence, Middle East’ and ‘Best Business Class Seat in the World’ prizes at the World Airline Awards 2011 organised by Skytrax, as well as the 2012 Business Destinations Travel Award for ‘Best Business Class </span><span style="font-size:10.0pt;line-height:115%;font-family:
">Airline, Middle East’.<br />
	<br />
	</span></p>
<p>
	 </p>',
			'published' => true,
			'created' => '2012-08-13',
			'modified' => '2012-08-13',
			'keywords' => '',
			'description' => 'The airline recently introduced complete cell phone and Wi-Fi connectivity aboard Oman Air’s Airbus A330 aircraft.',
			'sortorder' => '554',
			'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) 9 => array(
		'Article' => array(
			'id' => '654',
			'article_category_id' => '31',
			'title' => '‘A Number Of Nepali Banks Are Interested In IS Audits’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<br />
	<img alt="visiting business People" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/julyvisitingbusinesspeople(1).jpg" style="width: 195px; height: 273px;" vspace="5" /><br />
	<strong><br />
	Rajesh Deo is a Security Analyst in the Technical Assessment Team at NII Consulting, a well-established provider of information security services and products, based in Mumbai, India. <br />
	</strong><br />
	<br />
	He specialises on conducting Security Audits, Vulnerability Assessment and Penetration Testing for NII’s premier clients. Deo holds Certified Professional Hacker (CPH), Certified Professional Forensic Analyst (CPFA) and Certified Information Security Professional (CISP) certificates from the Institute of Information Security, the training wing of Network Intelligence India Pvt Ltd. He was recently in Kathmandu to participate in a security awareness workshop. The workshop was focused on general properties of information security, its nitty-gritty, demonstrations of security network tools and Information Security Auditing. In an interview with New Business Age, Deo talked about various issues related to security audits. Excerpts: <br />
	<br />
	<strong><br />
	What brings you to Nepal this time? <br />
	</strong><br />
	<br />
	I am here to participate in the security awareness workshop. We will be conducting general introduction to information security and IT security. I hope this will be beneficial to the business community at large in Nepal because almost all sorts of businesses today require computing system in one way or another. So, it becomes important to have a security system so that there is no infiltration into the computer system that will misuse valuable data and stored information. <br />
	<br />
	<strong><br />
	What is the difference between IT security and information security? </strong><br />
	<br />
	<br />
	IT security is a specific area that targets computer system whereas information security encompasses everything. Information could be a regular paper, or data or any other product a company may develop and all of that becomes part of information security. So, when you talk of information security audits, it also audits business growth. <br />
	<br />
	<strong><br />
	What are the products and services NII is currently offering? </strong><br />
	<br />
	<br />
	NII is primarily into information security consultancy. We also have a product business with our sister concern called Institute of Information Security through which we do a lot of trainings. On the product side, we provide product support for products such as antivirus, anti-spam solutions, firewall products, data leakage prevention solutions and source code auditing – a unique area we specialise on. We are starting a new area where we are going to analyse mobile applications. We are planning to analyse java applications on an android platform. <br />
	<strong><br />
	<br />
	Is there any difference in the extent of vulnerabilities faced by the corporate sector in the South Asia region when compared to that of western developed countries? </strong><br />
	<br />
	<br />
	I don’t think there are any specific differences. We face the same challenges that our western counterparts are going to face or have already faced. The difference is in the sense that the western counterparts already have information system for a longer period of time. So, their approach to audit system is more matured. Having said that, we actually have the benefit of having that knowledge ahead of it and there could be specific challenges in terms of the process because our process is different than their processes. Auditing the security system and making sure that they are fraud proof and security around them is well built, is the important part. <br />
	<br />
	<strong><br />
	With the invention of new technology and security systems, newer forms of threats are coming along. How challenging has it been to maintain security in the present situation? <br />
	<br />
	</strong><br />
	Mobile threats are becoming a major arena. There is significant penetration of mobile computing that is going on currently in the South Asia region. A lot of people want to operate their bank accounts through their mobile phones so it becomes an attractive target for frauds. It is important to consider that area as the emerging factor. Basically, all mobile devices – android based devices, iOS based devices and tablets – are coming into extensive use not just on a personal level but also in business. Companies allow you to bring your own device but they want to make sure that the company’s data you put on that device is protected as well. That is bringing new challenges on separating personal data from work data and about how to protect work data while also allowing you to maintain your personal data. Therefore, the security of these mobile devices is becoming a crucial factor. <br />
	<br />
	<strong><br />
	How do you compare the trend of maintaining security in Nepal and India? </strong><br />
	<br />
	<br />
	The challenges are more or less the same everywhere. Even in India, we are facing similar challenges you might be facing here. In some areas, threats may be more advanced than in other places. As NII, our core plans have been in the banking and we are well versed with the processes that take place in banks. That factor will be a beneficial one when we start our operations here. We are well aware of analysing security and performing audits, doing the measurements for different purposes and allowing that to have impact on your actual business so that the posture of your organisation with each audit becomes better. Security audits should not only try to make the process but also the overall way of working better. <br />
	<br />
	<strong><br />
	Security auditing seems to be the important need at present. How aware is the corporate sector in this region about it? </strong><br />
	<br />
	<br />
	IS (Information Security) audit is one of the most important pillars of a good organisation. The reason is that computers are mostly used ubiquitously in all operations. So, all your important records are kept on computer. IS audit analyses your system and try to understand the threats that exist to your business. Based on threats, we will assess the controls you have in place and given the current control, we will suggest you the ways to improve. All of these is documented and audited by checking the evidence. While doing this repeatedly through one or two audits, the overall security for sure becomes better for the risks one is facing as every organisation faces some risks to their respective business. It could be as simple as the theft or it could be as complex as somebody doing a financial fraud. At the end of the day, the goal of IS audit is to minimise the risk in different areas of the business so that it continues to function unimpeded. <br />
	<br />
	<br />
	<strong>How affordable is such system for small to medium sized businesses? </strong><br />
	<br />
	<br />
	It is difficult to comment on their affordability, however, an IS audit can be customised as per the needs of an organisation. For example, an organisation may say that it only wants one of its departments to be certified for a certain certification. In that case, it can cut away pieces and then take the piece that it so needs. Therefore, it is affordable to many organisations and actually getting a certification like ISO 27001 is quite feasible for medium to large businesses. Even small businesses can afford the same if they are working in a very niche area and are the market leader in that <br />
	<strong><br />
	<br />
	What are the prospects you see in Nepal when you would want to work here? </strong><br />
	<br />
	<br />
	There are a lot of prospects. For example, a number of banks here are interested in IS audits so it’s my guess that we will tackle that shortly. They are interested in data centres so we will also look into that. Both these areas are our core business so we would be very happy to have customers in these areas. If there are clients who want us to do specific kinds of engagements, we would be able to do that provided such requirements are under the purview of law. Banking, energy and industrial sectors are areas we are currently looking at right now. <br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'Rajesh Deo is a Security Analyst in the Technical Assessment Team at NII Consulting, a well-established provider of information security services and products, based in Mumbai, India.',
			'sortorder' => '553',
			'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) 10 => array(
		'Article' => array(
			'id' => '652',
			'article_category_id' => '38',
			'title' => 'ISO & Management System Certification',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong><img alt="julymanagement" border="1" height="146" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/july11management.jpg" vspace="5" width="300" /><br />
	<br />
	<br />
	</strong><br />
	The primary aim of the Quality Management System certification is to ensure consistent quality product and customer satisfaction simultaneously to fulfill the statutory and regulatory requirements with respect to the products and services ISO (International Organization for Standardization) is a nongovernmental organization whose main functions are to formulate, revise, adopt and update various standards. These standards may be applicable for all the member countries of the world. Its head office is in Geneva, Switzerland and around 165 countries are its members. Nepal Bureau of Standards &amp; Metrology represents the membership of ISO from Nepal. ISO has formulated more than 24,000 standards which include basic standards, product standards, test method standards and management system standards. <br />
	 </p>
<p>
	<strong><img alt="ISO Management" border="1" height="121" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/july_management.jpg" vspace="5" width="400" /></strong></p>
<p>
	 </p>
<p>
	In the management field, ISO has formulated Quality Management System standards (ISO9000 series), Environmental Management System standards (ISO14001-2004), Food Safety Management System standards (ISO22000: 2005) etc. ISO does not do any job with respect to certification and such activities are carried out by different certification bodies. These certification bodies are accredited from accreditation bodies. One certification body may have the accreditation from one or more accreditation bodies. There is one accreditation body named NABCB in India. There are hundreds of certification bodies under the umbrella of one accreditation body and these bodies are responsible to their accreditation bodies. <br />
	<br />
	<br />
	If any weaknesses are found on the part of certification bodies while awarding management system certificates like ISO9001-2008, the respective accreditation bodies take action against those certification bodies. The licence of certification bodies can even be cancelled from accreditation bodies in case of severe failure. The ISO does not have anything to do with this. These accreditation bodies are under the umbrella of International Accreditation Forum (IAF) that conforms to the guidelines developed by the ISO. Series of Quality Management System standards i.e. ISO9000 series was formulated by the ISO for the first time in 1987 with ISO9000, ISO9001, ISO9002, ISO9003, and ISO9004 with many others in this series. In this series, the certifiable standards were ISO9001, ISO9002 and ISO9003.This series was revised first in 1994 with little amendments, second time in 2000 with the remarkable revision by merging all three certifiable standards in one i.e. ISO9001-2000. The structure and some of the requirements have been changed and added during this time. There is no provision of ISO9002 and ISO9003 after this period. The third revision was made in 2008 with some revision including the control of outsourced process. The ISO 9001-2008 minutely looks at whether consistent quality products are produced and the overall management system of the organisation are met at the highest degree during organisational operation. Those companies meeting the requirements are awarded with the ISO 9001:2008 certificate by the certification bodies. <br />
	<br />
	<br />
	The primary aim of the Quality Management System certification is to ensure consistent quality product and customer satisfaction simultaneously to fulfill the statutory and regulatory requirements with respect to the products and services. The requirements of consumers are taken as the input and the organisation adds values to the requirement through different processes that eventually produces a product that has the capacity to satisfy customers. Quality Management System Requirement i.e. ISO9001- 2008 certification is not a medal of honour. However, it gives organisations the potential to become more cost effective and efficient. Similarly, it arms organisations with a powerful competitive tool that helps ensure consistent quality products and enhancement of customer satisfaction. <br />
	<br />
	<br />
	A company with well maintained and qualitative managerial practices is expected to produce quality goods and services. The ultimate goal of the certification is to ensure consistent quality products used or consumed by consumers that lead to ultimate customer satisfaction. The company may be certified for its Quality Management System, Environmental Management System, Food Safety Management System (in case of food industry only), Information Security Management System or any other management system standards developed by the ISO. Among these standards, Quality Management System Standard i.e. ISO9001-2008 is the most popular all over the world. It is a generic standard and is applicable to all types of organizations regardless of their size, nature of product and processes. Till the end of 2011, almost 1.2 million companies have been certified with ISO9001-2008 and almost 250,000 companies with ISO14001-2004 around the globe. In the context of Nepal, approximately 600 organizations have been certified with ISO9001-2008, 30 with ISO 14001-2004, 15 with ISO 22000-2005, and a very little number with Occupational Health and Safety Management System, Social Accountability. <br />
	<br />
	<br />
	There is no organization in Nepal that maintains data on the number of ISO management system standard certified companies in the country. The validity of the certificate is three years and there is surveillance audit every 9-12 months. In our context, some companies are missing the surveillance audit and in worst cases, a few are publishing advertisements even after the expiry of the certificate. So, the above mentioned number is only an approximation. Among them, a handful of companies have not renewed their standard certificates. <br />
	<br />
	<br />
	If a company is found misusing the expired certificate, the certification body may take legal actions upon receiving complaints. There is no legal authority in the country to look after these complaints even if some certified organization or certification bodies are indulging in malpractices. Monitoring is sorely missing in Nepal. There have been cases of awarding ISO management system certificates in the bordering areas where the certificate was given to those companies that do not comply with many of the requirements. In India, the accreditation body NABCB has brought a good change in this field by taking action against certification bodies whose performance is very poor. <br />
	<br />
	<br />
	It is the need of the time to establish one accreditation board in Nepal which can look after all types of Management System Certification bodies including laboratories accreditation. Around a decade ago, Nepali companies had to rely upon consultancies from India and third countries. However, some certification bodies have established their branches in Nepal at present while some others are operating directly in the country. The benefits of having the branches set up in Nepal are numerous on the part of revenue collection for the government and easy flow of information to stakeholders. <br />
	<br />
	<br />
	In conclusion, the management system certifications have brought positive improvements in many organizations even during adverse conditions such as political instability, power shortage, labour unrest etc although there is a lot of space for improvement in the consulting, certification and regulatory parts from the government side. <br />
	<br />
	<br />
	Bhandari is the Director of Quality and Environment Management Services Pvt Ltd and ISO 9001:2008 certified auditor. He can be reached via email at bhandaripomraj@ yahoo.com <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-08-15',
			'keywords' => '',
			'description' => 'The primary aim of the Quality Management System certification is to ensure consistent quality product and customer satisfaction simultaneously to fulfill the statutory and regulatory requirements with respect to the products and services ISO (International Organization for Standardization) is a nongovernmental organization whose main functions are to formulate, revise, adopt and update various standards. These standards may be applicable for all the member countries of the world. Its head office is in Geneva, Switzerland and around 165 countries are its members. Nepal Bureau of Standards & Metrology represents the membership of ISO from Nepal. ISO has formulated more than 24,000 standards which include basic standards, product standards, test method standards and management system standards.',
			'sortorder' => '552',
			'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) 11 => array(
		'Article' => array(
			'id' => '651',
			'article_category_id' => '39',
			'title' => 'Arun Valley HDC : For Rural Electrification',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<img alt="corporate focus" border="1" height="285" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/julycorporatefocus.jpg" vspace="5" width="400" /><br />
	<br />
	<strong>“Piluwa Khola Small Hydropower Project is an exemplary hydropower project developed by the private sector.” </strong><br />
	<br />
	<img alt="ramesh neupane" border="1" height="230" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/corporateimages.jpg" vspace="5" width="200" /><br />
	<br />
	<strong>RAMESH NEUPANE <br />
	Managing Director, AVHDC </strong><br />
	<br />
	<br />
	<br />
	“Domestic capital and technology are sufficient to rescue the country from the present energy crisis,” Ramesh Neupane, Managing Director of Arun Valley Hydropower Development Company (AVHDC) asserts. The rationale for this claim is: his company has built a 3-MW Piluwa Khola Small Hydropower Project in Sankhuwasabha district within 36 months. Out of the total 75, there are 40 districts in Nepal suitable and feasible for electricity generation. If a 5-MW plant is established in each of these districts, about 200-MW of energy will be added to the national grid within three years. When private sector adds 200 MW of power every three years, it is very possible that the same force can liberate Nepal from the energy crisis within a short period of time. <br />
	<br />
	According to Neupane, such a target can be achieved only if the government motivates the private sector. He underscored six points on making hydropower a centre of attraction for investment. First, the government should extend the license period from existing 35 years to at least 50 years for hydropower projects over 5 MW while the projects below it should be allowed to own the project for a lifetime. Second, Nepal Electricity Authority (NEA) must amend and increase electricity purchase rate in line with the inflation rate. “Price of electricity should be determined on the basis of demand and supply. NEA should increase the electricity tariff to the customers and with this effect, should also provide reasonable price to hydropower project developers,” he said. Third, the government should exempt VAT to hydropower projects. Investment in hydropower projects should be declared as tax free business till the country does not have sufficient power. This will help to attract investment into this sector. Fourth, Hydropower Finance and Development company of the government should be activated and provide long term loans on subsidised rates to the projects. Also, the capital market has to be liberal to raise funds from potential Nepali investors by issuing shares and debentures. Foreign investors should be attracted to invest in hydropower projects and allowed to trade shares in Nepal’s stock market. Fifth, the government should provide security to all projects. <br />
	<br />
	The cost of the security staffs has to be borne by the government and some field allowances are to be paid by the developers. Lastly, the government should build high voltage transmission lines from North to South to transmit energy generated in the Northern region to the Southern market of Nepal. Private sector investment in BT and/ or BOT model has to be allowed and this work should get higher priority. Additionally, Nepali energy system has to be connected with the Indian system so that energy can be imported when there is shortage and supplied when there is a surplus. Therefore, the construction of Nepal-India Cross Border Transmission Line is the urgent demand of the nation. <br />
	<br />
	In putting forward these constructive suggestions, Neupane speaks of his company’s experience as the pioneer company to introduce the concept of developing hydropower projects from the private investment in Nepal. In 1997, when the entire country was in the grip of Maoist insurgency, a group of people dared to establish Arun Valley Hydropower Development Company believing that it is possible for the private sector to build capital intensive projects such as hydropower provided there is a favourable environment, laws and policies for investment. The objective behind the establishment of Arun Valley was to construct, develop and operate small hydropower projects utilising domestic resources, technology and capital. <br />
	<br />
	When they planned to embark on their first project - Piluwa Khola Small Hydropower Project - they not only had to face difficulty to get the government’s support but also to fetch finance for it. When the AVHDC team approached the then Minister for Water Resources Sailaja Acharya with the concept, she expressed her surprise over the idea of a private sector company developing hydropower projects. But, impressed with their innovative concept, she pleaded help in every step of their project development. Their follow-ups in the Ministry of Water Resources bore fruits when NEA started to sign Power Purchase Agreement (PPA) with the private power developers. <br />
	<br />
	The team got a survey license from the Department of Electricity Development (DoED) of NEA to conduct feasibility study of Piluwa Khola Small Hydropower Project in Sankhuwasabha district. After completion of the survey, they applied for PPA. Minister Acharya helped them in getting a rate of Rs 3.0 for the wet season and Rs 4.25 for the dry season with an escalation of 6 percent for a period of five years. The escalation was supposed to be revised after five years but has not taken place till date, said Neupane. At that time, another setback was to find loan capital for the project. The project was planned with 30 per cent equity of the company and arranging 70 per cent loan from banks and financial institutions (BFIs). “As hydropower projects were the new investment area for the Nepali commercial banks, they were not ready to provide us loan in the initial phase,” said Neupane. Most of the BFIs doubted whether a private company can actually build and complete a hydropower project and will be able to pay back the loan amount. Finally, Manoj Goyal, the then CEO of the Bank of Kathmandu (BoK) took the risk and the first project of the company was financed and completed within the targeted time frame of 36 months. The project construction work was started in February 2001 and was completed in June 2003 while commercial operation started from August 2003. Arun Valley now has its own land and office building at Milan Chowk of Baneshwor and is listed in Nepal Stock Exchange.<br />
	<br />
	“The share price of this company ranges between Rs 300 and Rs 400 and the company claims that the market price of an Arun Valley Hydropower Company share will not be less than Rs 1000 upon the completion of Kabeli B1 Hydropower Project. “Piluwa Khola Small Hydropower Project is an exemplary hydropower project developed by the private sector,” argues Neupane. The company has been regularly distributing dividends to the shareholders of the company for the last seven years. “Investors have already got the return of their initial investment on the project. What they are getting now is their bonus,” shares Neupane. The second project of AVHDC is Kabeli-B1 Hydroelectric Project on Kabeli River flowing through the border of Taplejung and Panchthar districts. The project has completed the detailed feasibility study. The run-of-river project with an installed capacity of 25 MW, will sign PPA with the NEA within mid July. “The total project cost is estimated to be Rs 3,500 million. Of this total investment, 70 percent (Rs 2,450 million) will be raised from bank loan and the remaining Rs 1,050 million from the equity of share holders,” said Neupane. The company will issue rights shares to its existing shareholders to finance this project. <br />
	<br />
	A new company named Arun Kabeli Power Limited has been established as Arun Valley’s sister company to look after this project. “We have acquired 50 ropanis of land for the project and will be floating 39 per cent of the project company’s shares to the strategic partners in the beginning of next fiscal year,” said Neupane. Arun Valley Hydropower Development Company Limited will hold 51 per cent share of the project while the local people will have the opportunity to invest up to 10 per cent of the equity investment in this project. <br />
	<br />
	Lower Pheme Khola Small Hydropower Project is the second under construction project of the company located in the Mechi corridor. The project with an estimated cost of Rs 436 million has also reached the stage of PPA signing. “We will begin construction work immediately after signing the PPA,” said Neupane. <br />
	<br />
	The third project under development, Upper Piluwa Khola Small Hydropower Project, is being developed by Upper Piluwa Khola Hydropower Company Limited. AVHDC has the majority shares of this company. The project will be developed by setting-up a diversion weir from five kilometre up-stream of existing Piluwa Khola Small Hydropower Project. The project with an installed capacity of 9.6 MW has also reached the stage of PPA signing. Talking about the uniqueness of his company, Neupane shares that his company has more than 22,000 big and small shareholders. The company is in favour of mobilizing large number of people as investors in hydropower projects. The size of investment is as low as Rs 100,000. The company strives to keep the project construction costs low, complete the projects on time and distribute dividends to shareholders. Arun Valley is committed to utilise domestic capital, resources and technology to the optimum level and give relief to the country from prolonged hours of load-shedding even during the monsoon. “We have bid goodbye to load shedding in Gulmi and Sankhuwasabha districts. It is our vision now to lift the entire country from the existing energy crisis,” shares Neupane.<br />
	<br />
	It is his understanding that entrepreneurship, dedication and hardworking makes any project a success. “The technology for generating power from the running mountain water is well proven. We simply follow the art of technology,” he said. Neupane supports the idea of Foreign Direct Investment (FDI) to cash Nepal’s optimum potential in hydropower sector. He believes that the present political instability is the main impediment in attracting FDI in Nepal. “The first thing foreign investors consider is the risk involved in their investment. To minimise the risk, the government should sign a Power Development Agreement (PDA) with all the big and small project developers as well as local and foreign investors,” said Neupane. According to him, FDI will increase if the government requests foreign investors to invest in Nepal by agreeing to guarantee the security of their investments. The company also plans to attract new investors to invest in its new power projects namely Kable B-1 (25 MW), Upper Piluwa Khola (9.6 MW) and Lower Pheme Khola (3.5MW). <br />
	<br />
	<br />
	<strong>Swot Analysis <br />
	<br />
	<br />
	STRENGTHS </strong><br />
	<br />
	<br />
	• Motivated staffs <br />
	<br />
	• Stability of the company <br />
	<br />
	• Loan free company <br />
	<br />
	• Listed in the Nepal Stock exchange <br />
	<br />
	<br />
	<strong><br />
	WEAKNESSES </strong><br />
	<br />
	<br />
	• Employee turnover <br />
	<br />
	• Difference of thought between developers <br />
	<br />
	<br />
	<strong>OPPORTUNITIES <br />
	</strong><br />
	<br />
	• Developing partnership with local government <br />
	<br />
	• Developing projects with foreign investors <br />
	<br />
	<br />
	<strong>THREATS </strong><br />
	<br />
	• Unhealthy competition <br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-09-17',
			'keywords' => '',
			'description' => '“Domestic capital and technology are sufficient to rescue the country from the present energy crisis,” Ramesh Neupane, Managing Director of Arun Valley Hydropower Development Company (AVHDC) asserts. The rationale for this claim is: his company has built a 3-MW Piluwa Khola Small Hydropower Project in Sankhuwasabha district within 36 months. Out of the total 75, there are 40 districts in Nepal suitable and feasible for electricity generation. If a 5-MW plant is established in each of these districts, about 200-MW of energy will be added to the national grid within three years. When private sector adds 200 MW of power every three years, it is very possible that the same force can liberate Nepal from the energy crisis within a short period of time.',
			'sortorder' => '551',
			'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) 12 => array(
		'Article' => array(
			'id' => '650',
			'article_category_id' => '40',
			'title' => 'Open Skies Of Nepal',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Pinaki Roy <br />
	<br />
	</strong><br />
	<img alt="coverstory july" border="1" height="217" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/coverstory(1).jpg" vspace="5" width="400" /><br />
	<br />
	<br />
	The flow of international passengers in the first quarter of 2012 has been impressive enough to raise optimism among the concerned stakeholders. The statistics between January and March 2012 is an indication that international air service and passenger movement to and from Nepal is set to register a significant increase this year compared to 2011. A total of 717,182 international passengers (see table) availed air services via Tribhuvan International Airport (TIA) – the only international airport of Nepal – in the first three months of 2012, says Raj Bahadur Maharjan, Director at TIA’s Flight Approval Department. <br />
	<br />
	<br />
	There has been an increase of 84,459 passengers when compared to the first quarter of 2011, thereby registering a growth of 13.35 per cent over the same period of the previous year. Monetarily speaking, the total annual international flight service business in Nepal is worth an estiamted Rs 80 billion. <br />
	<br />
	<br />
	Ratish Chandra Lal Suman, General Manager at TIA, says, “The number of passengers has increased in the first quarter of this year also because of new airlines coming into operation and providing added air services.” He attributes the increment both to the increase in inbound tourists and the outbound migrant workers to different countries. Even though GMG Airlines towards the end of 2011 and Kingfisher Airlines in February 2012 ceased to operate in Nepal, their absence was promptly compensated by Indigo (October 2011) and RAK Airways (February 2012). <br />
	<br />
	<br />
	The number of flights that served these passengers was 5,693 (up by 9.69 per cent from 5,190 flights during the same period last year). While 2,846 flights made outbound journeys, the number of flights that landed at the TIA stood at 2,847. A total of 368,934 passengers flew out of Nepal while another 348,248 landed in the country from January to March this year, a growth of 11.48 per cent and 15.40 per cent respectively when compared to the same period of 2011. In the first quarter of the previous year, 330,954 passengers took outbound flights while another 301,769 passengers entered Nepal via inbound flights making a total of 632,723 passengers who availed international air services from January to March 2011. <br />
	<br />
	<br />
	This growth is certainly encouraging coming at a time when the International Air Transport Association (IATA) left this year’s global airline profit forecast unchanged at $3 billion, or 0.5 per cent of industry revenues. At a summit of airline chiefs being held this year in Beijing, this stable outlook masks a widening gap between regions with “only North and South America set to improve and the rest of the world seeing reduced profitability.” <br />
	<br />
	<br />
	<strong>The Year Gone By <br />
	</strong><br />
	<br />
	International air passengers flying via the Nepali sky crossed 2.7 million for the first time in 2011. These passengers travelled via Nepal with 28 international airlines operating in Nepal last year, according to Maharjan. He said that additional airlines such as IndiGo, added frequency of flights and passenger occupancy increased the number of air passengers using the Nepali route. The year 2011 saw 2.7 million international passengers flying out and landing in the country on board 22,791 flights. A total of 28 airlines flew 2,700,027 passengers (see table) for the year, says Maharjan. This was an increase of 10.81 per cent in comparison to 2010 when 2,436,558 passengers availed international air services in Nepal. <br />
	<br />
	<br />
	While 1,407,512 passengers flew out of the country, the passengers entering the country numbered 1,292,515. A total of 11,393 flights departed while 11,398 flights entered Nepal during the period making a total of 22,791 flights for the year. The only new airline that started operations in 2011 was Indigo. Qatar Airways carried the most number of passengers – 277,796 on 2,374 flights while Jet Airways was second with 272,560 passengers on 2,191 flights. Nepal Airlines Corporation was third with 202,041 passengers on 1,619 flights. <br />
	<br />
	<strong><br />
	Migrant Worker: The Main Market </strong><br />
	<br />
	<br />
	With more Nepalis departing for jobs abroad and increase in tourist movement, international airlines operating in Nepal have witnessed this rise in passenger movement in recent times. The airline companies claim that they are equally focusing on all the segments, which include business travellers, tourist, VFR (visiting-friends and relatives) and workers. However, it’s no secret that migrant workers comprise around 80 percent of the total passengers availing international air services in Nepal. Most of the international airlines flying to and from Nepal are more focused on manpower markets rather than the tourism markets. Of the total international flights, the airliners carry only 20 per cent tourists, observe industry analysts. <br />
	<br />
	<br />
	<strong>Contribution to Tourism </strong><br />
	<br />
	<br />
	International carriers from India accounted for the largest share of inbound tourism in Nepal in the previous year. According to TIA, Indian carriers flew around 48 per cent of all tourists visiting Nepal in 2011 – dubbed as Nepal Tourism Year (NTY). Indian travellers alone grew by 39 percent to 145,338 in 2011, a 26.67 percent share in total tourist arrivals to Nepal. As per TIA statistics, five Indian airlines—Spice Jet, Jet Airways, Air India, Jet Lite and Kingfisher—figured among the top 10 carriers bringing tourists to Nepal. The total tourist arrivals via air numbered 544,985 in 2011 that entered Nepal on board 28 international airlines. <br />
	<br />
	<br />
	Indian budget airline Spice Jet – that started flying to Nepal in October 2010 – was the largest carrier of tourists into Nepal in 2011, accounting for 15.28 percent of the arrivals. Jet Airways and Air India were the second and third largest tourist carriers respectively accounting for 12 percent and 8 percent tourist arrivals. Two legacy carriers—Thai Airways and Qatar Airways—fell in the inbound tourism rankings in 2011. While Thai’s market share shrunk to 8 percent from 11 percent in the previous year, the share of Qatar Airways slipped to 7 percent. Etihad Airways and Gulf Air, two more carriers from the Middle East, lost their slots in the top 10 list in 2011. <br />
	<br />
	<br />
	The healthy growth of Indian tourists to Nepal attracted yet another Indian private airliner Indigo Airlines that started New Delhi-Kathmandu flights in October last year making it the sixth Indian private airliner flying between Nepal and India. Currently, Air India, Jet Airways, Jet Lite, Spice Jet and Indigo fly around 130 flights a week between Kathmandu and various Indian destinations while Kingfisher Airlines has stopped flying to Nepal for the last few months. Needless to say, the increase in the number of Indian airliners flying to Kathmandu has encouraged the aviation sector in Nepal immensely and boosted the country’s tourism prospects. A total of 207,961 tourists entered Nepal via air in the first four months of 2012, a growth of 23.1 per cent over the same period last year. A total of 168,958 tourists had entered Nepal from January to April in 2011. <br />
	<br />
	<br />
	<strong>Direct Flights <br />
	</strong><br />
	<br />
	Broadly, any business or industry can be categorised either as monopoly or market-oriented. Due to the inherent nature of international air transport industry, every country enjoys certain exclusive rights, which indirectly helps them monopolise some air routes. This right, if exercised, could be of tremendous benefit to a country like Nepal. “Direct flights between Nepal and other countries can play a key role in bringing increased number of tourists into our country,” an industry insider opines. <br />
	<br />
	<br />
	For instance, none of the 27 airlines flying into Nepal have the right to operate direct long distance flights between Nepal and lucrative destinations like Europe, Japan and Australia. They can operate only connecting flights whereas Nepal gets the sole privilege of operating direct international flights from the country. As foreign travellers have no choice of direct air connectivity, air travel costs become higher while coming to Nepal. Mihin Lanka, a Sri Lanka-based airline has expressed its interest to operate direct flights between Colombo and Kathmandu. This was conveyed to Prime Minister Baburam Bhattarai by Lankan President Mahinda Rajapaksa on the sidelines of the recently concluded environmental summit in Rio de Janeiro, Brazil. Air Service Agreement (ASA) between Nepal and Sri Lanka allows Sri Lanka-based airlines to operate up to 14 flights a week in the Colombo-Kathmandu-Colombo sector. <br />
	<br />
	<br />
	<strong>State of the National Carrier </strong><br />
	<br />
	<br />
	The status of the national carrier – Nepal Airlines Corporation (NAC) – in terms of international flight operations is disappointing to say the least. Around 95 percent of the international aviation market in Nepal is in the hands of foreign air operators. “Our market share is worth less than Rs 4 billion out of the international flight service business of Rs 80 billion annually,” says NAC Spokesperson Saroj Kasaju. The market share of NAC shrank to an all-time low in 2011 in terms of tourist carriage. The national flag carrier held the 10th position with a mere 3.05 percent while it had a market share of 4.87 percent in 2010. The eroding market share of NAC, according to travel trade entrepreneurs, is due to its inability to expand its fleet while the fact remains that the prerequisite for business expansion in airline industry is acquisition of aircraft, especially for operation in the lucrative international sector. In 2001, NAC was a leading carrier accounting for 28 percent of inbound tourists. <br />
	<br />
	<br />
	With more international airlines entering the Nepali skies and NAC’s track record of flight delays, travel agencies say the national flag carrier has become the last choice among visitors. Currently, NAC operates its international flights with two ageing Boeing 757s, either one of which is usually offline due to technical glitches and periodic C-checks. The carrier now flies to only five international sectors – Dubai, Doha, Bangkok, Kuala Lumpur and Hong Kong – down from 21 destinations in 12 countries with four Boeings till 1993. The airline now plans to start flights to Damam in Saudi Arabia. It also plans to start flying to Kuala Lumpur seven-days-aweek besides launching direct flights to Doha, Qatar. <br />
	<br />
	<br />
	The corporation currently spends Rs 1.39 billion on repairs alone for the two planes – Boeing 757-9N ACA Karnali and ACB Gandaki – which it has in its ‘fleet’ right now, says Kasaju. “Out of the estimated income of Rs 4.52 billion from international flights in the current fiscal year, 23 per cent of the total amount has gone into the repairs of the two Boeings,” he adds. The cost of repairs has gone up considerably in the last five years due to the fast ageing of the two Boeings. This expense is several times more than what the private carriers spend on repairs and maintenance which is six to 10 per cent of their earnings from flights. <br />
	<br />
	<br />
	A strong and competitive national flag carrier can serve as a key vehicle of the country’s economic and tourism development. Kasaju says, “NAC has become a factory without machines due to lack of aircraft but hasn’t gone in loss yet.” He cautions though that the corporation can land in major financial trouble if aircraft is still not added to its fleet. <br />
	<br />
	<br />
	However, all is not lost as Kasaju reiterates that the corporation is still making profit thanks mainly to its ground handling business. The corporation provides such service to 23 foreign airlines that fly to Nepal. From a domestic perspective, the corporation is expected to get five units of 19-seater aircraft and three units of 56-seater aircraft from China on grants and concessional loan. The airline management is scared of an imminent demise of the company as its current basis of survival – ground handling business – is in jeopardy due to a move by the Civil Aviation Authority of Nepal (CAAN) to possibly involve the private sector and allow competition. <br />
	<br />
	<strong><br />
	Ground Handling Services at TIA </strong><br />
	<br />
	<br />
	CAAN is currently holding discussions with other government agencies and stakeholders to allow the private sector to operate ground handling services at the TIA. It informed that it may soon allow private firms to operate ground handling services during the night time. Currently, NAC that provides ground handling services to almost all international airlines currently earns Rs 2 billion a year of which 10 percent is paid to CAAN as royalty. CAAN says that many international airlines and customers have complained about NAC’s ground support service. The complaints are mainly two: thefts and tampering with passengers’ luggage and higher ground handling charges of NAC in comparison with other international airports in the region. It is hopeful that the introduction of a private firm will enhance quality and manage congestion at TIA. “The Civil Aviation Authority Act 1996 and National Civil Aviation Policy 2063 state that the ground handling service should be competitive. Besides, the agreement with the corporation also does not restrict CAAN from appointing a private firm to manage ground handling services,” says Suman. He adds, “Due to NAC’s monopoly, the ground handling charges in our country are the most expensive in this region.” <br />
	<br />
	<br />
	The addition of one more ground handling service provider is expected to bring in competition and end the monopoly thereby resulting in quality service at lower service charge, adds Suman. TIA currently has the capacity to serve 8.2 million passengers a year and can serve up to 1,350 international passengers on an hourly basis. “We have not been able to serve to our total potential due to organisational inefficiencies. The number of flights out of TIA is less than half the capacity that we can accommodate,” Suman says. Meanwhile, NAC officials deny the charges and claim that the incidents of baggage theft and breakdown are minimized to internationally acceptable level. They also allege that some of these complaints are actually due to the fault of CAAN and other government agencies involved in the business such as the immigration department. According to them, some problems are due to lack of adequate infrastructure such as insufficient apron space for parking the craft which are forced to wait in the taxiway for long periods. Besides, inadequate number of boarding gates cause delays in boarding and confuse passengers on the correct conveyer belts to deliver the luggage are frequently out of order while the luggage weighing machines are not repaired on time. Insufficient number of toilets and chairs in the passenger waiting area add to passenger woes further. <br />
	<br />
	<br />
	The NAC management says that it’s not only the ground handling services that are expensive in Kathmandu. It gives examples of the fuel price and the charges that CAAN levies on account of aircraft landing, parking and navigation. The charges for CUTE used for passenger check-in too are high in Nepal than elsewhere, argue NAC executives. They point that the ground handling services in many other countries such as Thailand, UAE, Qatar, Malaysia and Hong Kong are provided by their national flag carriers either on their own or through subsidiaries. In Thailand, even the flight catering service is provided by the party that is recommended by Thai Airways, they say. <br />
	<br />
	<strong><br />
	Trans-Himalaya 2 Airspace <br />
	</strong><br />
	<br />
	Considering the increased air traffic at the TIA, CAAN is planning to operate the international airport 24 hours a day. This is expected to help in managing the increasing air traffic. Besides, it is also seeking an alternative location nearby Kathmandu for shifting the domestic airport from TIA to address the congestion. Likewise, it is also going to extend the domestic terminal building and make a separate car parking area for arriving passengers. <br />
	<br />
	<br />
	Nepal plans to ask India for the development of Trans-Himalaya 2 airspace (Hong Kong-Kunming- Guwahati-Kathmandu) connecting Southeast Asia, the Middle East and Europe in view of the increasing air traffic demand in Nepal. The route is one of the most lucrative routes for Nepal and if opened, it will be the shortest way from China and the Far East to the Middle East and Europe. The air distance from Kathmandu to Hong Kong will also be reduced. Implementation of this airspace will allow international airlines to fly over Nepali airspace, which means savings in fuel and distance for carriers flying this route and revenue for Nepal. “The airspace was discussed during Prime Minister Baburam Bhattarai’s visit to Delhi,” says Suresh Acharya, Joint Secretary at the Ministry of Culture, Tourism and Civil Aviation (MoTCA). According to him, India is positive about opening the proposed route. He adds that separate discussions need to be held with the Chinese government with regard to permission from the Chinese side for the opening of Trans-Himalaya 2 airspace. The opening of this proposed air route will have hundreds of international airlines use Nepali airspace and help the country to develop as a hub. CAAN officials add that the proposed route would be the shortest and could establish Nepal as an international transit point and result in enhanced air revenue for the country. The second international airport that the government has planned to construct in Nijgadh of Bara would be the greatest beneficiary in the event this air route comes into operation. Similarly, for aircraft entering Nepal’s air space, CAAN proposes Biratnagar (in the eastern region), Bhairahawa (in the western region) and Nepalgunj (in the mid-western region) as the three crossborder airspaces. Currently, Nepal has three incoming air routes—Simara, Kakkarbhitta from Paro in Bhutan and the Nonim air route from China. The Kathmandu-Mahendranagar-Delhi (L626) is the outgoing air route for international flights. Nepal is seeking new airspaces to ease traffic congestion, enhance information transmission, traffic regulations, emergency recovery of aircraft during accidents and automatic message switching system in its aviation sector. <br />
	<br />
	<br />
	The proposed route is more direct, safer, economical and efficient for flights between Europe, the Middle East and East Asia. These routes will reduce the congestion of westbound traffic flows across the Bay of Bengal. Experts claim that access to this international air space would give Nepal a huge opportunity to develop as a hub like India, the Maldives, Pakistan and Sri Lanka in South Asia. Maximum coverage of Nepal’s air space on long distance international flights via this proposed route could bring great benefits to the country if brought into operation <br />
	<br />
	<strong><br />
	The Way Forward </strong><br />
	<br />
	<br />
	As per the estimates of the International Civil Aviation Organisation (ICAO), an investment of US$ 100 in the air transport industry produces benefits worth US$ 325 for the economy, and 100 additional jobs in the air transport sector results in 610 new jobs across the wider economy. It further suggests that the air transport component of civil aviation accounts for more than 4.5 percent of the global GDP. As for the numbers, three carriers – AirAsia X, Malaysia Airlines and BB Airways – start operations in 2012. AirAsia X has already started operations while Malaysia Airlines and BB Airways are planning to operate international flights from September this year. It’s courtesy the competition among airlines on Kathmandu-Kuala Lumpur route as these three carriers unveiled plans to operate on the sector. The growing movement of Nepali migrant workers to and from Malaysia is one of the reasons luring airlines to fly on this sector. Statistics released by the Department of Foreign Employment shows that an average of 350 Nepali workers left for the Malaysian capital on a daily basis in the last fiscal year. While Malaysia Airlines is the national carrier of Malaysia, AirAsia X is a Malaysia-based budget carrier. ASA between Nepal and Malaysia allows Malaysian carriers to operate up to 21 flights a week. On the other hand, BB Airways is an upcoming local carrier promoted by TBI Group of Non Resident Nepalis (NRNs) in Japan which has already unveiled plans to operate scheduled flights on seven international routes including Kuala Lumpur. <br />
	<br />
	<br />
	There is an unlimited potentiality of the development of tourism and civil aviation sectors in the country. A well-equipped fullfledged international airport – where long-haul flights from Europe and America could directly land and take off – is needed for the development of the aviation and tourism sectors. In this context, a proposed fullfledged airport at Nijgadh can be an international hub for air transit and contribute substantially to the overall economy of Nepal. Nepal Investment Board (NIB) has already taken the initiative on projects related to the upgradation of TIA, and construction of a new airport in Nijgadh. It is estimated that the TIA upgrade will cost Rs 52.80 billion while the construction of the new airport in Nijgadh will cost Rs 45 billion. <br />
	<br />
	<br />
	<br />
	<br />
	<br />
	<strong>‘Gulf Air Provides Excellent Connectivity to a Large Number of Nepali Workers’ <br />
	<br />
	<br />
	<br />
	<img alt="" src="http://www.abhiyan.com.np/images/uploaded/renji-kurian-th_1343383001.jpg" /><br />
	<br />
	RENJI KURIAN THOMAS </strong> <strong><br />
	Country Manager <br />
	Gulf Air <br />
	<br />
	</strong> <br />
	<br />
	<strong>Can you share the rate of increase in passengers flying to and from Nepal over the years? <br />
	</strong> <br />
	There has been a steady growth of passengers over the years. As one of the major international airlines operating in Kathmandu, we have seen nearly a 20 per cent increase in the number of passengers in the first quarter of the year 2012. The latest report of Tribhuvan International Airport (TIA) also has our airlines figuring among the top four international airlines that have seen the strongest growth in passengers’ movement. Having started our operation in July 1998, we are now operating 12 flights between Bahrain and Kathmandu weekly. <br />
	<br />
	<br />
	<strong>How do you assess the quality of air service infrastructure in Nepal? <br />
	</strong> <br />
	The quality of air service is very good as the airport takes care of landings and take-offs for as many as 27 international airlines. However, there is always a scope for improvement with the increase in tourism traffic in Nepal. The airport has been working to improve its facilities further as such. <br />
	<br />
	<br />
	<strong>How has been the demand on the number of flights over the years? How are you managing the supply to meet the demand? <br />
	</strong> <br />
	The demand on this route is increasing steadily. By increasing our frequencies as well as operating large aircrafts periodically, we manage to accommodate more passengers. Gulf Air provides excellent connectivity to a large number of Nepali workers in the gulf region, particularly Saudi Arabia. We operate larger aircrafts as per the situation, especially when the demand is high. <br />
	<br />
	<br />
	<strong>What are your unique selling propositions? How aggressively are you marketing them? <br />
	</strong> <br />
	We have got the biggest network in the gulf region and several USPs to our credit. One of them is our schedule with excellent connectivity, for example, our split schedule of flights between Bahrain and Kathmandu offers very good travel options as it allows travelers to choose their own flight timings. In addition, Gulf Air’s seamless connectivity to Europe and the Far East via the Bahrain hub is an ideal choice for European customers travelling to Nepal or the Far East. Moreover, we are currently operating one of the youngest fleet with an average age of 5.2 years. This A320 fleet which operates between Bahrain and Kathmandu, offers ergonomically designed seats for travelers with maximum comfort, full flatbed seats on Falcon Gold class and the latest in-flight entertainment. <br />
	<br />
	Internationally, we are the first airline in the world to offer ‘Sky Hub’ that offers hi-speed broadband internet, mobile phone connectivity, live TV telecast, popular entertainment programs, sports channels and an array of movies, music and games. In addition to that, Gulf Air’s unique Sky Nanny and Sky Chef Services have received positive feedback from the customers. These services have helped us win the best ‘family friendly airline’ from US-based publications and the ‘best cabin crew’ award ranking from an IATA survey. <br />
	<br />
	<br />
	<strong>Airlines flying to Nepal are said to have very few business class seats. Is it true that airlines do not see prospects for business class market here? <br />
	</strong> <br />
	The aircrafts that we fly to Kathmandu are the same as the ones that fly on our other routes. We use a combination of narrow and wide body aircraft for flights to Kathmandu, depending on the traffic. We agree that the potentiality of business class market is not high in Nepal when compared to other regions. However, we offer 16 Falcon Gold Business class seats on our A320 fleet which has a configuration of 136 seats in total. The gold business class has full flat seats and several modern features for those who prefer stylish and luxurious travel. <br />
	<br />
	<br />
	<strong> What are your expansion plans? <br />
	</strong> <br />
	We do continuously look at the number of the passengers and market demands and decide accordingly. As said earlier, we have increased our frequencies and are also periodically operating larger aircraft to meet the seasonal and expanding market. <br />
	<br />
	<br />
	<strong>Most of the flights made to Nepal are targeting migrant workers. How sustainable is this policy? <br />
	</strong> <br />
	As mentioned in the TIA report, increased labor traffic accounts for around 80 percent of seat demand in all international airlines. All international carriers connecting to Nepal saw a robust increase due to this reason. We cater both to migrant workers and tourists. However, the majority of our traffic to Kathmandu is the migrant workforce working in the gulf countries. We foresee this trend to continue for some time to come. <br />
	<br />
	<br />
	<strong>What are your operational difficulties and facilities in Nepal? <br />
	</strong> <br />
	There are no operational difficulties except the weather of course. As you know, we are sometimes forced to divert our flights to nearby Indian airports due to unfavorable weather conditions such as dense, fog etc especially during winter. However, with our split schedule flights, we have better timings for landing in Kathmandu. <br />
	<br />
	<br />
	<strong>How are you managing your ground handling staff and crew members? <br />
	</strong> <br />
	We have Nepali speaking cabin crew in our team, who are deployed on the Kathmandu route most of the time so that our Nepali customers could feel at home. Almost all our staffs at the airport and city office are Nepalis. <br />
	<br />
	<br />
	<strong>How do you see the prospects of Nepal’s tourism sector? How is your airline contributing to it? <br />
	</strong> <br />
	Tourism is one of the main industries in Nepal. The Nepal Tourism Year 2011 was quite successful. Through International air passenger movement, Nepal grew 13.35 percent in the first three months of 2012 with high migrant workers and tourist traffic. Kathmandu is one of the major tourist destinations with thousands of foreigners visiting the country for a variety of reasons. <br />
	<br />
	The tourism sector is bound to expand as more and more people opt for unique and affordable destinations such as Nepal. We are able to connect more passengers than others to travel to Kathmandu via our Bahrain hub. The tourism campaigns or promotions by Nepali tourism authorities in the gulf countries can further help an increment in the tourist traffic to Nepal. I am proud to say that Gulf Air too has a role to play in the tourism development of Nepal as we cater to a large number of European tourists who find it convenient to fly with us. <br />
	<br />
	<br />
	<br />
	<strong>‘An International Airport at Nijgadh can help Establish Nepal as a Transit Hub’ <br />
	<br />
	<br />
	<br />
	<img alt="" src="http://www.abhiyan.com.np/images/uploaded/tri-ratna-manan_1343383130.jpg" /><br />
	<br />
	TRI RATNA MANANDHAR </strong> <strong><br />
	Director General <br />
	Civil Aviation Authority of Nepal (CAAN) <br />
	</strong> <br />
	<br />
	<strong><br />
	What is the current scenario of International flights operating in Nepal? </strong><br />
	<br />
	Earlier, we had altogether 28 operators conducting international flights. Among them, three operators namely GMG Airlines, Kingfisher Airlines and Bahrain Air postponed their flights. Simultaneously, three other operators namely BB Airways – a Nepali airliner – along with two airliners from Malaysia, Air Asia X and Malaysian national carrier Malaysia Airlines were included. Air Asia X is operating from July 3 while BB Airlines is to commence from September this year. That is to say, some airlines are withdrawing their flights while some others are commencing their operations soon. However, the numbers of operators are back to 28 as it was before. There are 33 other airlines waiting in the wings with their air service agreements (ASAs). <br />
	<br />
	<br />
	<strong>The infrastructure bottleneck is often the constraint to provide international standards services to the airlines flying to Kathmandu. What exactly is the situation? <br />
	</strong> <br />
	We must accept this fact. We are not being able to develop the infrastructure as per the growth of air traffic movements. That is why we are very often facing air traffic congestion at TIA. To address such problems, we are conducting various measures. First of all, a TIA Capacity Enhancement Project is going on with support from an ADB loan of US$ 70 million. CAAN itself is investing another US$ 30 million in the project. This US$ 100 million project will address the extension, expansion, and development of TIA which includes the civil infrastructures such as runway and taxiway extension, construction of additional parking bay etc. The development of equipment is another component that is also in our priority. These components are ATC automation and communication and navigation equipment. These tasks are part of the capacity enhancement project. We are also planning to separate domestic operators and shift them somewhere close to Kathmandu. Dhulikhel seems to be a possible location and a detailed feasibility study is being conducted for that purpose. We are looking at this alternative so that we can use the present TIA only for International operation. <br />
	<br />
	<br />
	<strong>How is CAAN addressing air traffic issues like landing and take-off, flow of flights and routes etc? <br />
	</strong> <br />
	We have some problems in the international air route and we are inviting Indian authorities to Nepal to hold discussions on this very soon. <br />
	<br />
	<br />
	<strong>How improved has the passenger handling capacity of TIA become in the recent years? <br />
	</strong> <br />
	We are continuously trying to improve our services. But I can’t say that the improvements are significant because of the limited facilities. Even the space is the same as we have been using before. Upon the completion of the ADB project, we would be able to enhance the passenger handling capacity and provide other facilities accordingly. <br />
	<br />
	<br />
	<strong>What happened to the plan of making TIA operational for 24-hours-a-day? <br />
	</strong> <br />
	We are continuously exercising to operate that way. But there are certain things to be considered like manpower planning, reliability of the radar etc which are essential in making TIA operate for 24-hours-a-day. Besides CAAN, the immigration authorities and the security establishments also need to be prepared for it. <br />
	<br />
	<br />
	<strong>What is the overall air service infrastructure situation of Nepal? <br />
	</strong> <br />
	In terms of airports and airport facilities, we (the Ministry of Culture, Tourism and Civil Aviation and CAAN) are aggressively involved in improving and increasing airport infrastructure. The project for constructing Gautam Buddha Regional International Airport at Bhairahawa is in the pipeline. The revised estimated cost for the project is US$ 77 million. Another project for a regional international airport in Pokhara is also proceeding for which China Exim bank has shown an interest to invest in. <br />
	<br />
	<br />
	<strong>How many of our airports are capable of handling international flights in terms of runways and other infrastructures in Nepal? <br />
	</strong> <br />
	Airports in Bhairahawa, Nepalgunj and Pokhara are capable for conducting cross border flights with India. They can operate in Indian cities like Lucknow, Varanasi, Delhi and Patna. As for fullfledged international operations, we only have TIA to look up to. <br />
	<br />
	<br />
	<strong>Experts say that lack of direct international flights from major tourist destinations have resulted in great loss for our tourism sector. What is CAAN doing about it? <br />
	</strong> <br />
	The entire aviation sector understands the value of direct international flights. The scenario of constructing Nijgadh International Airport has emerged due to this need. It’s been so many years that we are talking about constructing it but there is no achievement on this front so far. If the nation really wants to promote the tourism sector on a massive scale, a full-fledged international airport is a must as the present international airport (TIA) is not a full-fledged one. It has many constraints because of the terrain, runways and lack of other infrastructures. That is why it is not possible to operate long haul flights from the US and Europe. Landing a big aircraft is another impossibility given the present circumstances. If the tourists from countries in Europe and the US could travel directly to Nepal, it would have been convenient to us as well as the tourists. For instance, it takes a minimum of two stops and one has to spend more than 24 hours to travel from Europe to Kathmandu. All the pleasure and excitement is gone because the tourists feel exhausted and tired due to long flights. The travellers have to spend more hours in transit than on board the flights. <br />
	<br />
	We are unaware of the exact tourism potentiality of Nepal. The President of International Civil Aviation Organization (ICAO) visited Nepal recently. He was shocked to hear that we were able to bring only about 700,000 tourists against our target to bring in one million tourists during Nepal Tourism Year 2011. <br />
	<br />
	We will not be able to develop our tourism sector as desired if we depend entirely on TIA only. By constructing a full-fledged international airport at Nijgadh will not only enable us to operate long haul international flights but also help establish Nepal as a transit hub like Hong Kong and Bangkok. <br />
	<strong><br />
	<br />
	What do you have to say about the fifth freedom rights of international airliners operating in Nepal? </strong> <strong><br />
	</strong> <br />
	We assure such rights in the Air Service Agreement (ASA) with international operators. The recent controversy with Air Arabia on the fifth freedom rights is meaningless. As per the provision of an ASA between Nepal and UAE, it is their right to seek so. If the international operators do not get their fifth freedom rights, they cannot run their businesses. We can’t even imagine building the Nijgadh Airport leaving aside such rights. Fifth freedom rights will help develop Nepal establish itself as a transit hub. But these controversies are hardly true for some other international airlines. More than 90 per cent international airlines are enjoying fifth freedom rights, for instance, Druk air is operating a flight between Kathmandu and Bhutan via Delhi. <br />
	<br />
	<br />
	<strong>‘Dragonair is Bringing a lot of People into Nepal’ <br />
	<br />
	<br />
	<br />
	<img alt="" src="http://www.abhiyan.com.np/images/uploaded/thomas-bellamy_1343383224.jpg" /><br />
	<br />
	THOMAS BELLAMY </strong> <strong><br />
	Manager - Nepal <br />
	Hong Kong Dragon Airlines Ltd <br />
	</strong> <br />
	<br />
	<strong><br />
	Can you share the rate of increase in passengers flying to and from Nepal over the years? <br />
	<br />
	</strong> Dragon air started its operation in Nepal in 1989. The service was halted in 2001 and re-launched in 2007. We have gradually increased our frequency and now have daily flights. We have increased the aircraft size with the increase in passenger numbers. We are taking more passengers to China, Japan, Australia and the US. These are the big destinations for us. Dragonair is also bringing a lot of people into the country especially during the peak tourist season from September to April. <br />
	<br />
	<br />
	<strong>How do you assess the quality of air service infrastructure in Nepal? <br />
	</strong> <br />
	There have been some good changes at the TIA recently – for example, the new check-in desks and screens that have been installed at the international terminal. We hope for more improvements to be made in the future. It is very important to have a very strong main airport here in Kathmandu to act as a hub for inbound Nepali tourism. <br />
	<br />
	<br />
	<strong>What is the demand on the number of flights over the years? How is Dragon Air managing the supply to meet the demand? <br />
	</strong> <br />
	We have the capacity to meet the growing demands. There is enough demand to utilise the capacity and thus, we increased the frequency to a daily flight in September 2011. We are quite optimistic about Nepal and will continue to monitor such situations. From the tourism perspective, a lot depends on the stability of things here in Nepal. If Nepal can get good coverage in other countries, the travel agents and airlines will be more willing to promote Nepal and the number of passengers will increase as well. <br />
	<br />
	<br />
	<strong>How cooperative have the Nepali government institutions been in helping meet the market demands? <br />
	</strong> <br />
	I think the intentions are good. There are obviously a few constraints in Nepal, but many of these will fall off in a more stable environment. For now, we just need to continue working together to improve wherever we can and to focus on the positives. The Airlines Operating Committee which comprises airport representatives from most of the major carriers in Nepal continues to work with the relevant authorities to look for improvements wherever possible. <br />
	<br />
	<br />
	<strong>What are your unique selling points? How aggressively are you marketing them? <br />
	</strong> <br />
	One of the unique selling points of Dragonair is having Hong Kong as its hub. We have fantastic connections, and together with our sister airline Cathay Pacific, we are capable of connecting passengers to over 160 destinations worldwide. In Hong Kong, the minimum connecting time with Cathay Pacific has been reduced to 50 minutes which gives passengers more choice and convenience. There are many destinations from Hong Kong within a relatively short distance – half of the world’s population within five hours. On the long-haul side of things, we connect to New York four-times-daily. We look at the possible frequency rather than relying solely on our capacity. We want to give passengers more choice, which means provide more departure time wherever sustainable. <br />
	<br />
	Dragonair’s world-class service and quality products have long been recognised – we’ve won the Best Airline – China category for six consecutive years in the respected Skytrax passenger survey and we were also voted the “World’s Best Regional Airline” in 2010 and 2011. Dragonair’s major strength is China. We fly to 19 destinations in mainland China and operate about 400 flights a week. Adding to it, our sound safety record, well-trained and professional staff, and good on-time performance are the positive sides to focus on. <br />
	<br />
	<br />
	<strong>Airlines flying to Nepal are said to have very few business class seats. Is it true that airlines do not see prospects for business class market here? <br />
	</strong> <br />
	Asia has shown its ongoing potential and resilience in the face of the current global economic downturn. Until now, Nepal has widely been regarded as a leisure travel destination. We are optimistic that, with stability, business and industry here can grow and along with it, the demand for business travel will rise. We actually have a decent number of business class seats on our Airbus A330 aircraft, but it would of course be nice if passengers originating from Kathmandu could fill more of those seats. <br />
	<br />
	<br />
	<strong>What are your operational difficulties and privileges received in Nepal? <br />
	</strong> <br />
	The weather is always a challenge for airline operations and it is no exception here in Nepal. We have worked with the authorities and our own engineering teams to overcome the constraints we face here, so as to ensure timely operation as much as possible. This is particularly important in the context of the airport operating hours (the airport closes after midnight). The ever increasing number of tourists would definitely benefit from further improvements at the airport, and we will continue to support positive initiatives from the authorities in that direction. <br />
	<br />
	<br />
	<strong>It is said that operating in Nepal is very cheap despite having poor infrastructure. What are its advantages? <br />
	</strong> <br />
	While operational cost is one of the many factors, we look at running our business anywhere. We see Nepal more for its market potential i.e. its attractiveness as a destination and travel demand to other countries like US, Australia, Japan, Korea and of course Hong Kong and China. <br />
	<br />
	<br />
	<strong>What are your expansion plans? <br />
	</strong> <br />
	We continue to look forward to opportunities in Nepal and act accordingly in terms of available possibilities. We will increase frequency if we continue to see good growth in passenger numbers at sustainable yields. Basically, we will react to the situation, and we’re optimistic that the outlook for Nepal is bright. <br />
	<br />
	On a larger scale, Dragonair is adding six aircraft: four Airbus A320s and two Airbus A330s to the fleet this year - expanding the size of the Dragonair fleet from 32 to 38. Two additional A320s and one A330 have already entered the fleet this May. In terms of Dragonair’s network this year, we launched flights to Jeju on 01 May (three flights per week), to Chiang Mai on 01 July (four flights per week) and to Kolkata, India in winter 2012 (four flights per week). Flights were also resumed to Taichung on 14 May (twice daily), to Guilin on 01 May (daily), and Xian on 01 Apr (daily). <br />
	<br />
	<br />
	<strong>‘Thai Airways was the First Airline to Operate Jet Service to Nepal’ <br />
	<br />
	<br />
	<br />
	<img alt="" src="http://www.abhiyan.com.np/images/uploaded/chantouch-srini_1343383315.jpg" /><br />
	<br />
	CHANTOUCH SRINILTA </strong> <strong><br />
	General Manager <br />
	Nepal &amp; Bhutan <br />
	Thai Airways International Public <br />
	Company Limited <br />
	</strong> <br />
	<br />
	<br />
	<strong>You are going to complete 44 years of operation in Nepal. How has been the journey so far? <br />
	</strong> <br />
	The history of Thai Airways International in Nepal dates back to 1968 when the inhabitants of Kathmandu had their first glimpse of THAI’s 72-seater French built Caravelle SE210 aircraft which touched the unfamiliar runway of Tribhuvan International Airport (TIA). We are going to complete 44 years of our operation in Nepal this year. <br />
	<br />
	THAI was the first-ever airline to operate jet service from Kathmandu and the airline that opened up the forbidden Himalayan Kingdom as a new tourist destination to the world. It was a spectacular and memorable event in the Nepali Aviation history. <br />
	<br />
	THAI also introduced the first computerized reservation system in Kathmandu in February 1985 and provided this facility to its leading travel agents since 1990. Royal Orchid Lounge at the TIA used to be the only lounge operated by THAI in the 1990s. However, after Nepal Government adopted liberal sky policy, many other international airlines joined the race. Our monopoly market share has been diluted a little bit but we are enjoying the competition. It has given us the opportunity to prove ourselves as the first choice carrier in terms of our fleet size and service standards. <br />
	<br />
	<br />
	<strong>What is the demand status on the number of flights over the years? How are you managing the supply to meet the demand? <br />
	</strong> <br />
	Being a pioneer and well renowned carrier, THAI always had the strategy to adjust the number of flights as per market demand. In the beginning, we operated once a week flight between Bangkok and Kathmandu and soon after that, one more flight was added to cope with the high demand of passengers. THAI started daily flights with A300-600 aircraft since the end of October 1997. In the context of growing demand of air seats to/from Nepal, we added three more flights in 2008. Based on the request of different tourism related associations like NATTA, PATA, HAN and NTB, we began to run 10 flights per week. Now we have seven flights a week with a configuration of 30 business class and 279 economy class seats. <br />
	<br />
	<strong><br />
	Thailand has been one of the most popular destinations for outbound tourism for the Nepalis. What is Thai Airways’ contribution to it? <br />
	</strong> <br />
	Thai Airways has played a leading role in the development of tourism not only in Thailand but also in helping Nepal in worldwide promotion as a major tourist destination through various media like our in-flight magazine “Sawadee” and Royal Orchid Holiday Packages tours. Besides performance, punctuality, and silk class services to our valued customers, we have joined hands with the Tourism Authority of Thailand by frequently organizing different events like Trade Fairs, Educational/ Medical fairs, familiarization trips for agents and media, Thai Food festivals, Thai Puppet shows etc. We also offer attractive packages and special fares for students and leisure travelers. <br />
	<br />
	<br />
	<strong>How has Thai Airways been promoting Nepal at the international level? <br />
	</strong> <br />
	Thai Airways was the first airline to operate jet service to Nepal and introduce this country to the world. These days, many airlines are inspired to operate their services in this country due to our successful operation for the past 44 years. THAI had actively participated in “Visit Nepal Year 1997” and spread good word all over to promote “Nepal Tourism Year 2011” as well. We joined hands with the organizers of Asian Mountain Bike championship in 2008 by offering special fares to the participants all around the world. In addition, we organized a big puja same year to introduce Lumbini to the pilgrims from all around the world. This year, we are going to sponsor the famous Nepali musical group “Sur Sudha” to perform in Thailand. <br />
	<br />
	<br />
	<strong>How cooperative are the Nepali Government institutions in helping meet the demands from this market? <br />
	</strong> <br />
	Thai Airways has been getting a very constructive support from the government bodies in Nepal. This is one of the reasons behind our uninterrupted service for the past 44 years. We have always been able to bring into operation the required number of flights connecting Kathmandu and Bangkok as per our market demand. This cooperation is good for both the countries in terms of tourism, economy, education and other sectors. We are thankful to the Nepal Government, NAC, CAAN, TIA, ATC, NTB, NATTA and PATA for the continued support extended towards THAI. <br />
	<br />
	<br />
	<strong>Most of the flights made to Nepal are targeting migrant workers. How sustainable is this policy? <br />
	</strong> <br />
	Labor traffic does not occupy a major business of our flight operations, it is only a partial business of our total occupancy. Since the very beginning, we have had different segments of traffic like the royalties, frequent flyers, government officials, diplomats, expats, students and the tourists. Labor traffic is also part of our business but as I said we don’t depend heavily on it. <br />
	<br />
	<br />
	<strong>What are the operational difficulties and facilities in Nepal? <br />
	</strong> <br />
	Lack of proper infrastructure, unstable government, political instability and unhealthy competition among budget airlines are the drawbacks hindering smooth operation of the renowned carriers such as THAI. <br />
	<br />
	<br />
	<strong>Operating in Nepal is said to be cheap. What is your experience? <br />
	</strong> <br />
	We do not think operating in Nepal is cheap. On the contrary, it is one of the most expensive in terms of ground handling, parking and landing, ground space, rental, ramp, fuel and all kind of other charges. <br />
	<br />
	<br />
	<strong> How are you managing your ground handling staff and crew members? <br />
	</strong> <br />
	THAI has its own handling service in Nepal. It has never compromised in quality services; therefore, we have our own operational, ground handling and administrative staff directly under the THAI set up of course. <br />
	<br />
	<br />
	<br />
	<br />
	<br />
	<strong><br />
	</strong></p>
<p>
	<strong>GSAs that Fuel the Business <br />
	<br />
	<br />
	By Gaurav Aryal </strong><br />
	<br />
	<br />
	Around 85 per cent of international airlines operating in Nepal have made their presence felt through a number of GSAs <br />
	<br />
	<br />
	International airline companies operating in Nepal prefer having a presence through their General Sales Agents (GSA) rather than having their local office stationed in the country. Around 85 per cent of international airlines operating in Nepal have made their presence felt through GSAs. Out of the 28 international airlines currently in operation, only four of them, namely Thai Airways, Air India, Qatar Airways and Etihad Airways have their country offices in Nepal. A source at a leading travel agency under the condition of anonymity said “It’s not only offline but also the online airlines that are operating through their GSAs in Nepal.” <br />
	<br />
	<br />
	Sunil Sharma, Managing Director at Society Travel Service Pvt Ltd said that offline GSAs could be of any number as travel agents have Special Prorate Agreement (SPA) with offline airlines on a code sharing basis. He said that such offline airlines carry transit passengers flying from Nepal to various sectors and destinations around the world. Sharma, who is also a GSA of RAK Airways said, “It would be a major headache for airline companies to have their office setup here and run after various things ranging from policies to issues regarding aviation fuel. The airlines feel it would be a waste of time as the documentation procedure here is difficult along with the bureaucratic hassles. GSAs have the knowhow about local issues and it would be easier for the airlines to operate through GSAs who are handed over with specific duties and responsibilities.” <br />
	<br />
	<br />
	Similarly, it is believed that the GSAs have a greater knowledge on the local market as they are the local partners that have been in existence for a long time. “GSAs bear expenses, mobilise local staff, have detailed information about the local market, and having a GSA is cost effective than having an airline office established here. So, the international airlines prefer having GSAs rather than setting up their local offices of their own,” said the source. GSAs, usually the agent for sales of air tickets, are also the partner for marketing the airlines they represent. The source said that airlines and agents in Nepal jointly carry out marketing campaigns for the airlines. According to the source, the travel agencies are lured to work as GSAs because they receive override commissions along with additional commissions and other benefits like travel certificates, and staff trainings among others. Sharma also said that GSAs work on override commission and set up office, hire staff required at the corporate office and even at the airport. However, ground handling is not allowed to be performed by GSAs as it is taken care of by Nepal Airlines Corporation for every airline other than Thai Airways and Air India. “The majority of the clientele of GSAs are anybody going abroad, be it tourists, migrant workers, students, business persons, visitors, expatriates and everybody else who is travelling,” said a source at a leading travel agency. The source added that the ratio of Nepalis to foreigner passengers is 75:25 per cent. Sharma said that the companies that work as GSAs for passenger segment are also the Cargo Sales Agents (CSA) with the respective airlines. Sources said that GSAs have been operating in Nepal for over three decades now. <br />
	<br />
	<br />
	However, sources said that it is difficult to exactly pin point the size of the GSA market and their respective market share because everything depends on the demand and supply of flights. They added that the demand and supply keeps on varying constantly. <br />
	<br />
	<br />
	The number of international air passengers flying to and from Nepal has increased over the years and so has the number of flights. In the first three months of this year, 717,182 international air passengers travelled via Nepal. According to the data of Nepal Tourism Board, 207,961 tourists arrived in Nepal via air route from January to April 2012. It is a 23.1 per cent increment from 168,958 tourist arrival during the same period of 2011. The major reason behind the increment in air passengers is the increase in tourist inflow and migrant workers going abroad in search of job opportunities, according to Ratish Chandra Lal Suman, General Manager at Tribhuvan International Airport. President Tours and Travels (PTT) represents around half-a-dozen airlines as their GSA. Gulf Air, Qantas Airways, Kenya Airways, United Airlines, Air Mauritius, Indigo Air are some of the airlines that it represents but PTT is the passenger sales agent for United Airlines and Indigo Air. Similarly, Zenith Travels Pvt Ltd, another travel agency represents Bahrain Air, Sri Lankan Airlines, Spice Jet, Turkish Airlines and Qatar Airways Cargo as their GSA. <br />
	<br />
	<br />
	<strong>New Airlines in Nepali Sky <br />
	<br />
	<br />
	By Dipa Baral <br />
	</strong><br />
	<br />
	AirAsia X has already started operations while Malaysia Airlines and BB Airways are planning to operate international flights from September this year <br />
	<br />
	<br />
	Nepal is on the way to become an international air hub, thanks to the rise in the number of tourists and labour traffic in the past few years. AirAsia X, the budget carrier of AirAsia, has already started operations from July 4 this year while Malaysian national carrier Malaysia Airlines and Kathmandu based BB Airways are planning to operate international flights from coming September. Besides, some prominent countries have shown interest to sign Air Service Agreements (ASAs) or to review the past ASAs with Nepal. AirAsia X has started scheduled flights between Malaysian capital Kuala Lumpur and Kathmandu two times a week i.e. Tuesdays and Thursdays and has plans to add two more flights from September this year. The airline has priced its ticket at Rs 11,000 (exclusive of taxes) for one way trip. “The ASA between Nepal and Malaysia allows Malaysian airliners to operate 21 flights a week. But, AirAsia X has taken the permission to operate seven flights a week at the most,” said Suresh Acharya, Head of Air Services Agreement, Airlines and Airport Operation Division at the Ministry of Culture, Tourism and Civil Aviation (MoTCA). <br />
	<br />
	<br />
	BB Airways, promoted by TBI Group of Non Resident Nepalis (NRNs) in Japan, will also operate flights from September 13 this year. The company has already brought a Boeing 757-200 (ER) on wet lease that will operate nine flights a week to Doha and Malaysia. “We will bring another aircraft of the same category after a month of our formal operation and operate 17 flights a week,” said Shishir Bhatta, CEO of BB Airways. The company will also add Singapore and Bangkok to its destinations after getting another aircraft on lease. <br />
	<br />
	<br />
	BB Airways had acquired a license for international operations from the MoTCA in the first week of January 2012. “We are aiming to promote Nepali identity all over the world through our international air service and aspire to place Nepal in the global travelling map,” said Bhatta. The airways has not made public its flight rates yet but informed that the ticket booking will be available both online and via travel agencies. <br />
	<br />
	<br />
	The third airline in the pipeline to commence international air service in Nepal is Malaysia Airlines, the national flag carrier of Malaysia. “It’s been more than a year since Malaysia Airlines obtained operating license from the ministry. It has plans to start flights from coming September,” said Acharya. The airline has a permission to operate seven flights a week between Nepal and Malaysia. Similarly, four countries— Vietnam, America, Australia and Indonesia—have shown interest to sign ASAs with Nepal while United Kingdom (UK), Jordan, Pakistan, Bhutan and United Arab Emirates (UAE) want to review their past ASAs. “We have not been able to translate the talk into action because of Nepal’s vague stance on fifth freedom. When the world is practicing freedom right up to the ninth, we are still arguing over granting fifth freedom right,” said Acharya. In December 2010, the government had to bar Air Arabia from exercising its fifth freedom right to fly on the Kathmandu- Kuala Lumpur sector at the eleventh hour following pressure from Nepal Airlines Corporation (NAC). The national flag carrier had claimed that the decision will make serious impact on its business. The case is now pending in the Supreme Court. “Rather than restricting the government from signing deals with international airlines, it must concentrate on its own capacity building and adopt aggressive marketing strategy,” said Acharya. He underscored the need of networking, partnership and alliance with other airlines to sustain in the present world. However, if NAC had believed that Air Arabia’s fifth freedom right would jeopardise its existence, it is yet to see what impact the entry of these three new airlines will make. “Once the new airlines commence operation, the competition will become even tougher because they will certainly end NAC’s monopoly in catering to the labour traffic. But, we cannot hold the market for NAC as the country has been practicing liberal sky policy. It is high time that NAC improved its services and got ready for competition,” said Acharya. <br />
	<br />
	<br />
	The MoTCA has also issued a 45-day public notice on May 25 inviting domestic operators to apply for international operation. The notice has invited applications for a chartered and a cargo flight each. Companies having paid-up capital of Rs 500 million and security bond of Rs 5 million can apply for the license by paying Rs 50,000 to the ministry and avail the document of Terms of Reference (ToR). The companies should also pay Rs 50,000 per route as royalty. <br />
	<br />
	<br />
	“So far, Siddartha International Airlines has applied to operate a chartered flight. But we hope to get some more applications as there is still enough time to apply,” said a high level official at the MoTCA. <br />
	<br />
	<br />
	<strong>Five Airlines: One Destination <br />
	<br />
	<br />
	By Sushila Budhathoki </strong><br />
	<br />
	<br />
	Nepal experienced the formal beginning of aviation in 1949 when a lone 4-seater Indian Beechcraft Bonanza aircraft arrived in Kathmandu <br />
	<br />
	<br />
	With 27 per cent arrivals and 14 per cent departures out of the total passenger movement in the year 2011, the airline companies originating from India contribute a large chunk of the international passenger movement in Nepal via its flights to Kathmandu. According to the TIA passenger manifest, the airlines from India registered passenger arrival numbering 354,738 out of the total of 1,292,515 passengers that landed in Nepal and 377,867 departures out of the total 1,407,512 departing passengers. Nepal experienced the formal beginning of aviation in 1949 when a lone, 4-seater Indian Beechcraft Bonanza aircraft arrived in Kathmandu. And after a decade, Himalayan Aviation Dakota had the first charter flight between Calcutta (now Kolkata) and Kathmandu. Airlines from India came into business operation from 1953. More than half-a-century of existence in the Nepali sky, Indian airliners still prove to be among the leading carriers that bring substantial number of passengers to Nepal. Ranjan Pokhrel, Head of the International Relations Department at CAAN, says, “If we look into the history of Nepali aviation, we find that the Indian airliners have made a significant contribution to Nepal’s aviation development.” He adds, “Indian airliners are important not only for the aviation sector but also to the economic, social and cultural aspects of Nepal. They are contributing towards providing transport facilities, bringing Indian tourists and strengthening the high level political relationship between Nepal and India from the beginning.” Currently, there are five Indian carriers - Air India, Jet Airways, Jet Lite, Indigo Airlines and Spice Jet - operating between Nepal and India. Kingfisher Airlines, once a major operator on the Kathmandu-Delhi route, has postponed its many international flights including the Kathmandu sector. Air India now operates 32 flights in a week which includes a daily flight between Kathmandu and Delhi and 4 flights a week on the Kathmandu-Kolkata and Kathmandu-Banaras routes. Similar is the story of another Indian carrier Jet Airways which operates a daily flight each on the Delhi-Kathmandu and Mumbai-Kathmandu sectors. Jet Lite, Spice Jet and Indigo have one flight each on the Delhi-Kathmandu route on a daily basis. <br />
	<br />
	<br />
	Nepal Airlines Corporation (NAC), the only Nepali airlines which pioneered flights to Indian cities has now postponed its flights since November 2011. It used to fly to Patna, Calcutta, Mumbai and Bangalore earlier. In the last two decades, NAC has not added any new aircraft. Pradip Karki, Director of Traffic Management at NAC, however, assures that flights to Indian destinations will resume soon. He says NAC must resume flights to India with a new fleet and the government should support the idea. He adds, “We have discussed and signed an MoU with the aircraft manufacturing company to either buy or lease aircraft. There may be Airbus A320 - a 150 seater or A330 - a 250 seater that will operate flights to India in the future.” Most Indian carriers are said to be low cost carriers (LCCs) when compared to other airlines. The fare for the economic class seats starts at Rs 6,300 while business class seats cost a maximum of Rs 34,000 on the Kathmandu-Delhi route. Many other international airlines have started to fly in the same route and the competition has grown stronger. TK Saha, the Country Manager at Air India says that his team is happy with the sector. “In spite of severe competition by other international airlines as well as Indian competitors, we are maintaining and operating our flights with an average of 74 per cent occupancy,” he adds. <br />
	<br />
	<br />
	Nepali and Indian aviation authorities reviewed the Air Service Agreement (ASA) in 2009 to permit Nepali airline companies to fly 24 destinations in India. As per the reviewed ASA, airlines from Nepal can incre',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-08-22',
			'keywords' => '',
			'description' => 'The flow of international passengers in the first quarter of 2012 has been impressive enough to raise optimism among the concerned stakeholders. The statistics between January and March 2012 is an indication that international air service and passenger movement to and from Nepal is set to register a significant increase this year compared to 2011.',
			'sortorder' => '550',
			'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) 13 => array(
		'Article' => array(
			'id' => '649',
			'article_category_id' => '46',
			'title' => 'Salman Lafit Rawn',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size: 14px;"><strong><br />
	</strong></span></p>
<p>
	<span style="font-size:14px;"><strong>We Have To Work According To Consumer Psychology’</strong></span></p>
<p>
	<span style="font-size:14px;"><strong><br />
	<br />
	<br />
	</strong></span></p>
<p>
	<img alt="rawn" border="1" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/rawn-interview(1).jpg" style="width: 230px; height: 350px;" vspace="5" /><br />
	<br />
	<strong>Salman Latif Rawn <br />
	Country Manager, Nepal <br />
	Coca-Cola Sabco <br />
	</strong><br />
	<br />
	<br />
	Salman Lafit Rawn is the country manager of Coca-Cola franchise in Nepal since January 2012. Prior to joining Coca - Cola, he had worked in the capacity of the General Manager at Pepsi Cola franchise Iran. He has also worked as the Country Manager at Alokozay Group of Companies in Dubai – UAE . From 2005 to 2007 he was with coca-cola company managing its franchise in Afganistan in the capacity of Country General Manager. An MBA Graduate from the institute of Business Administration in Lahore, Rawn has more than 25 years of extensive and successful experience in the Fast Moving Consumer Goods (FMCG) industry. In an Interview with New Business Age Rawn shared the expansion and investment plans of his company for Nepal and also shed light on the existing challenges. Excerpts: <br />
	<br />
	<strong><br />
	We have heard about the massive expansion plan of Coca-Cola in Nepal. Would you like to shed light on it? <br />
	<br />
	</strong><br />
	The Coca-Cola Group has been working on the expansion of the available categories of its beverage. Right now, we are only doing the Returnable Glass (RGB) and PET business categories. We are investing 23 million USD in a new plant in Terai this year which will be the group’s largest single-time investment in Nepal so far. Internationally, we have many areas where we work in, for example, juice, water and energy drinks. Taking into account the uniqueness and demand of this market, we are planning to introduce some of those products here in the coming years. <br />
	<br />
	<br />
	It’s tough bringing investment in Nepal or convincing people for funding, especially when the political and business environment is not very constructive. However, we have managed to bring investment this time and we are hopeful that if we could use it well, we could bring in more money for this country. <br />
	<br />
	<strong><br />
	What can be the positive outlook for this investment? <br />
	</strong><br />
	<br />
	If we are making profit from this country, we also have to return something to it. There will be new expansions in terms of investing in the plant and machines and it will create new employment opportunities for people. Besides, we will be contributing more to the government exchequer. Nepal is a landlocked country where we need to import most of the raw materials which means that more money will go to the government coffer in the form of Customs Duty or Value Added Tax (VAT) <br />
	<br />
	<strong><br />
	I believe that Coca-Cola has not introduced a wide range of products that are available in many other countries. What are you doing in this regard? <br />
	</strong><br />
	<br />
	Coca-Cola has a wide range of products. Unfortunately, the size of the market is too small to produce all of those products in Nepal. Putting up a manufacturing facility for everything produced by the group will be highly capital intensive. However, we are trying to bring machines which can produce multiple products. Another constraint for this is the per capita income of the Nepali people which is very low. An ordinary Nepali citizen would not spend much on beverages. We are more dependent on tourists and their consumption trend. But this does not mean that we will not introduce any new products in Nepal; we will first import a new product range in Nepal from our plants in the neighbouring country. If we see demand for those products in the market, we will then accordingly set up the manufacturing plant here. We can introduce juice, water and energy drinks and add more flavours to the existing products in the future. <br />
	<br />
	<br />
	<strong>Though the per capita income of the Nepalis is still low, the distribution system for products like beverages has expanded in Nepal in recent years due massive expansion in road network. Has not this development in infrastructure helped in increasing the business prospects? <br />
	</strong><br />
	<br />
	These aspects are not enough because we have to work according to consumer psychology. It has been discovered through our consumer researches and direct discussion with the consumers that people living in European countries and Western territories don’t limit their beverage consumption only to events or family gatherings. It is part of their regular life as well whereas in Nepal, there is still a trend to consume beverage during particular events and festivals or in the presence of guests. The per capita soft drink consumption of the Nepalis is less than eight bottles a year in comparison to other South Asian countries where it is anywhere from 24 to 48 bottles a year. It will certainly be safe for us to introduce new range of products as and when Coca-Cola becomes a part of the Nepali people’s everyday lives. <br />
	<br />
	<br />
	<strong>Coca Cola enjoyed 70-80 percent of market share in Nepal till a few years ago. That figure is now reduced to 66 per cent due to aggressive marketing from the competitor. What are you doing to regain the lost market share? <br />
	</strong><br />
	<br />
	I have worked in markets where we had as much as 92 per cent market share. But these percentages are not attainable when there are two competitive companies operating in the same market. The reality is that when two companies are working competitively, market shares settle down somewhere between 60 and 40. I have worked both with Pepsi and Coke and I know where the market share of Coke is higher than Pepsi or vice-versa and what are the reasons behind it. Our objective behind expansion and investment is to have greater market share and product availability during the peak season. If my production capacity does not allow me to reach everyone during the peak season when they want to consume my product, people will not consume my products in the future. It’s because that opportunity will be grabbed by someone else. So we are trying to regain that lost opportunity which someone else has grabbed. And the moment we have that, the lost market share will automatically come back to us. <br />
	<br />
	<br />
	<strong>What are Coca-Cola’s marketing strategies in Nepal that has helped the brand to maintain its market leader position? <br />
	<br />
	</strong><br />
	Multinational companies implement different marketing strategies at different locations. Despite having a vast range of products in their portfolio, they do consider various aspects for example, which market to go, when to go, what amount of market maturity to seek etc before launching their products. You might find some products in Nepal that are imported in the quantity of thousands or hundreds. However, when it comes to manufacture those products here, it is imperative to justify the required investment. It is the same with us so we are waiting for the right time to introduce additional products. <br />
	<br />
	<br />
	<strong>Bottlers Nepal – the Nepali bottler of Coke – had won the Country of the Year Award in 2010. When next can we expect a similar feat from Coca- Cola’s Nepal operation? <br />
	</strong><br />
	<br />
	We bagged the ‘Country of the Year Award’ continuously for two years in 2009 and 2010. There are nine countries in the group now and all of them compete for this award. Surely, there are countries that have advanced technologies such as South Africa. There is Sri Lanka, Uganda, Ethiopia and we are competing with all of them. But even this year, we won two awards— Employee Engagement Award and Best Water Usage Award. We are competing again and hope to get the Country of the Year Award in the coming years. <br />
	<br />
	<br />
	<strong>How has the ongoing financial crisis affected the soft drinks market in Nepal? <br />
	<br />
	</strong><br />
	We, or for that matter, any other FMCG companies have been seriously affected on two counts. First, with all those days of closures, the production has been disturbed. Second, the distribution of the product has become very difficult. Continuous bandhs have affected our transportation system adversely and a weak transportation mechanism impacts our production system as well. We produce less when there isn’t enough transportation facility available. When we produce less, the cost per case goes high and it affects us as producers as well as the consumers. <br />
	<br />
	<br />
	<strong>What kind of challenges do you see in your job in the Nepali market? <br />
	<br />
	</strong><br />
	Electricity is a very big challenge because we are in a business where products are best served when they are chilled. We have distributed refrigerators to the outlets in the market but they cannot sell chilled drinks due to power outage. Another challenge is gasoline or diesel prices which increase every couple of months or so. At the same time, we can’t increase the price of our products to adjust accordingly. The frequent hike in petroleum prices also makes it difficult for us to decide on our annual budget. The third biggest challenge is the dollar rate fluctuation which has been impacting us heavily as we have to import 90 per cent of the raw material that we use. <br />
	<br />
	<br />
	<strong>Is that the reason for you to reduce your advertising budget? <br />
	<br />
	</strong><br />
	We have not reduced our advertising budget as such. We have rather changed the focus of our advertising campaigns. For example, if there is lesser electricity, the people will be watching television for a lesser duration of time. So we thought of diverting our investment from electronic mediums to advertising through hoarding boards that are more visible and do not get impacted by power outage. You can see increased number of such hoarding boards in the Kathmandu Valley when you move around. There is hardly any main road where Coca-Cola is not present so it’s just a shift of focus. <br />
	<br />
	<br />
	<strong>How do you view the present competition in Nepal’s soft drink market? <br />
	</strong><br />
	<br />
	There are two major categories in the Carbonated Soft Drink (CSD) industry —water and flavoured drinks. There is no ‘A’ Class player in water so far in Nepal which is dominated by a few local brands available in the market. However, there is a competition between two players in the flavoured drinks category. Our competitor is trying to build a market for itself and so are we. But the good thing is that our share of the market pie becomes bigger with the growth in the market size. I could see that as an industry, we are less dependent on trying to eat each other’s pie. Instead, we are trying to increase the total size of the market. The fight between the two companies was stringent in the past but it is not the same anymore because a person working for Coca-Cola today can work for Pepsi tomorrow and vice-versa. At present, the fight is more indirect for example; it is for the space in the outlets. The general size of our grocery shops is small so it’s not just the soft drinks producers but the entire FMCG industry that is jostling for space in the outlets. <br />
	<br />
	<br />
	<strong>It is said that one of the major problems in the Nepali market is that of arrears in collection of dues from the distributors. How is your experience? <br />
	<br />
	</strong><br />
	We don’t have such issues. I have also talked with other FMCG companies and even they are not operating on credits. However, I don’t say that we don’t have any arrears at all. There are credits in the market but these are secure credits. Our distributors are working with us for a reasonable period of time so there is a certain level of credibility in our relations. If we realise that a distributor or distributing channel might land us in troubled waters, we prefer not to extend any unsecured business with them. <br />
	<br />
	<br />
	<strong>Bottlers Nepal has increased its spending on CSR activities in recent years. Can you tell us about the new CSR activities that are being planned? <br />
	<br />
	</strong><br />
	I could see a huge chunk of activities this year coming under our CSR initiatives apart from our regular activities. We have been working on water utilisation, plantation and education and we have also been sponsoring certain orphanages. Our new project is to extend support to women entrepreneurs so we have adopted a vision “5 BY 20” which is a commitment to empower 5 million women to turn successful entrepreneurs by the 2020. Nepal has also been selected for the project from the South-West Asia Region. A senior person representing the Director level of the India Division of the Coca- Cola Company will be visiting Nepal next week to explore the details of the campaign. The Senior Vice President of the division will accompany him and together they will be setting different criteria. The criteria will entail aspects like who can qualify, what can be the measures to qualify and what will be an appropriate form of support for women entrepreneurs etc. Another project which we are going to introduce is ‘Support My School’. It is about kids who run away from schools, are not interested in study and do not have access to studies. This big campaign will be looking at ways to help them through uniforms, books, building libraries and classrooms etc. <br />
	<br />
	<br />
	<strong>As a global operator, what are the challenges you face in a country like Nepal? <br />
	<br />
	</strong><br />
	Nepal is among the very few countries in the world which are landlocked. It does not have much of its own revenue generation. To analyse how much people can buy from us and what things they will be interested in, we will have to watch their source of revenue. Like I said earlier, the smaller base of the country, lack of electricity and diesel, and dollar rate fluctuation are the major challenges in bringing big investment to this country. Another problem is that of finding the right people to work because the Nepali industry is small. Had there been multiple industries, there would have been a bigger pool of human resource to choose from. <br />
	<br />
	<br />
	<strong>What kind of government support are you looking for? <br />
	</strong><br />
	<br />
	The government should see the quantum of direct or indirect taxes and exchequers that we are paying. If it increases the excise duty or other duties at a very abnormal rate to industries like us, bringing investment to this country and creating opportunities for employment will be difficult. We are trying to expand our business so we need facilitation in technology and computerisation from the government. We will not be able to bring investment to this country if we have to wait years-on-end for approval on bringing software and technology. At present, we are trying to bring in a software called SAP and it’s already been a year since we applied to the Inland Revenue Department for the approval. Our application is simply gathering dust there. SAP will enable our headquarters to evaluate our work and access our records through our central server. It is easier to operate when this system is installed and therefore, we have been requesting the government to approve our application. We are not the first company in Nepal to use this software as there are some other companies that are already using the same technology. We have explained this to the government authorities but they told us to wait for the permission. We have met the concerned officials and satisfied all their queries but there is no progress so far. How can we bring more technology and investment in this country if the government does not facilitate manufacturing industry with the required technologies? It is our sincere request to the government to do the needful and approve our application on the SAP software. <br />
	<br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'Salman Lafit Rawn is the country manager of Coca-Cola franchise in Nepal since January 2012. Prior to joining Coca - Cola, he had worked in the capacity of the General Manager at Pepsi Cola franchise Iran. He has also worked as the Country Manager at Alokozay Group of Companies in Dubai – UAE',
			'sortorder' => '549',
			'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) 14 => array(
		'Article' => array(
			'id' => '648',
			'article_category_id' => '47',
			'title' => 'Beauty Queen Turned Businessperson',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<strong>By Gaurav Aryal <br />
	<br />
	</strong><br />
	Ritu Singh Vaidya, Managing Director at United Traders Syndicate Pvt Ltd (UTS), has enjoyed every role she has stepped into. When she walked on the ramp, she mastered it with her style. When she was on the stage, she cherished the music and touched the listeners’ heart. Now, she is handling the position of a leading business person very well. Model, former Miss India, singer and now a businessperson; Vaidya has perfected the responsibilities she thinks are brought to her by destiny and her dedication in the pursuit of dreams. <br />
	<br />
	<img alt="Ritu Singh Vaidya" border="1" height="362" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/personality(3).jpg" vspace="5" width="300" /><br />
	<br />
	<br />
	Ritu Singh Vaidya always dreamed to set up her own business although she was at the pinnacle of her modelling career. With twists and turns of her career that were never disappointing for her, she has now climbed up the ladder towards a leading position in one of the leading business houses of Nepal, Vaidya’s Organisation of Industries and Trading House (VOITH). Her working style is ruled by discipline as she was raised in a family with partly business and partly army background. <br />
	<br />
	Vaidya recalls her childhood in Delhi as “nice, pleasant and loving”. She feels fortunate about having pleasurable childhood days. Her grandfathers were in the business sector and were running their family business in present day Pakistan. She says her grandfathers moved to Delhi when she was an eighth grader. She was educated in Delhi and after completing school, Vaidya pursued fashion designing for her higher studies. She is also a BA in Economics and Political Science from Delhi University. <br />
	<br />
	It was obvious for the beautiful and charming Vaidya to be offered a career in glamour and modelling industry. She believes destiny took her into the world of modelling. “I was in class XII when my friends and I participated in the May Queen contest. So, that was the beginning of it.” She was crowned the May Queen title. She actively began modelling after many offers started coming her way. Her journey on the ramp did not stop immediately though. She went to the Miss India contest and grabbed the title that many Indian women dream to achieve – Miss India – in 1991. After winning the title at home, her next target was to win international titles. Vaidya became the fifth runner up in Miss World, second runner up in Miss Asia World and first runner up in Miss India Universe. <br />
	<br />
	“I took it (modelling) on because it just came to me. It happens that things suddenly start working for you and I think they are the natural things to happen because they just come your way,” she says, “But I always had an entrepreneurial spirit in me. I always wanted to establish myself in some kind of business where I felt challenged. I am someone, who likes a routine, discipline and innovativeness.” Vaidya believes she was always inclined towards business. Even during her modelling days, she would dream of getting into some sort of business in the future. “I wasn’t somebody who was going into Bollywood” she says. <br />
	<br />
	Vaidya says she has never been a person who is devoted to only one thing. “When I got into the glamour world, I was also very focused on my studies and about what I was going to do next. Though I was very much enjoying it, I couldn’t see myself turning forty on the ramp,” she explains. <br />
	<br />
	Everything was organised and settled for young Vaidya even at the age of 20. She says she was almost leading a life what people start mostly at their middle ages. She was just 20 when she met businessman Suraj Vaidya in Kathmandu at a charity fashion show organised by him for Bal Mandir. The professional acquaintance grew into love and later to marriage within a matter of years. Vaidya recalls that the initial days of living in Nepal after her marriage was completely different from her earlier days. She says it was a total change in her life, family, career and friends. “The first year of marriage was difficult because I was not used to a lot of things. But my husband made it very easy for me as he was very easy and patient about me even when I went back to Delhi 15 times in 12 months,” she shares. <br />
	<br />
	Vaidya ventured into fashion designing in her initial days in Nepal and worked as a fashion designer for seven years. That was the time when she was also rearing her child. Vaidya stopped designing clothes and dived into her new found passion – singing. She released an album, ‘Sun Zara’ and appeared in her album’s music videos as well. However, she has abandoned her role as a singer as she thinks it consumes a lot of her time and takes her away from her family. “When I released my first album, I really thought I can manage singing simultaneously with my business commitments but later I realised it is not so. For Hindi singing you have to be in Mumbai and be accessible whenever somebody calls you. That was not something I was looking for and desired in my life. Singing for films and doing stage shows is not my cup of tea.” She started taking responsibilities in VOITH when Suraj Vaidya was busy travelling and spending time for larger business responsibilities. <br />
	<br />
	“He had a great ideology on which everybody was moving and that was a great success too. Once he was unwell and had to take rest for treatment. That was when I took up the work,” she says. At present, she is completely looking after UTS and its divisions that deal in Toyota and heavy equipments. Along with it, she occasionally looks after the spa she has set up a few years back. When it comes to working approach, she says, “My approach is very simple. I try to simplify things and believe in a totally centralised command. But jobs are designated to different people and they have a total free hand in what they do. But yes, it has to be totally accountable.” She encourages flow of new ideas from her employees but feels that the final central command has to be strong enough to prevent things going haywire. Vaidya thinks employees are most happy when you let them do the work, give them a good working environment, be ready to listen to their suggestions and at the same time reward them for what they do. Vaidya has a disciplined working style. “Because I am disciplined, a lot of my staff has to be disciplined. They can’t take anything lightly because they know when I say something that needs to be done. I am very focused on making sure that whatever needs to be done, should be done in the given frame of time,” she emphasises. <br />
	<br />
	<img alt="Ritu Singh Vaidya" border="1" height="460" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/personality1(1).jpg" vspace="5" width="300" /><br />
	<br />
	Vaidya reveals that her organisation is planning to expand into newer sectors like hydropower, hospitality and education. She is trying to consolidate what is already with the organisation along with planning of new ventures. She says, “Hydropower should be there soon as it is already in the pipeline and we are seriously looking into hospitality. Hopefully, we will be coming with new ventures in the next two years if we don’t have external disturbing factors like endless bandhs and political crisis.” Vaidya believes that she has not earned enough money to spend on charities and philanthropic activities. “I believe in doing philanthropy with my own money. I won’t be convinced about it if I am going to throw somebody else’s money and call it a charity. If I can do well and manage to spare money from my earnings; that is the right kind of charity that I would want to do.” <br />
	<br />
	She thinks she is very compartmental and does not like to mix her personal and professional life together. So, she never takes her office to home. “My time is totally devoted to home when I am home. Similarly, when I am in the office, I give all the time to my office works,” Vaidya reveals. Evenings are for her son and husband while she reserves her morning time usually for exercising. A strong believer in destiny, Vaidya is very satisfied with what life has brought to her. She takes her life as it comes and is ready for wherever it leads to. Optimistic in nature, one shouldn’t be surprised to find her trying new things, ventures and passions in the days to come. Her well wishers shouldn’t be astonished to see her in a completely new avatar not too long in the future. <br />
	<br />
	<br />
	<img alt="Ritu Singh Vaidya" border="1" height="296" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/personality2.jpg" vspace="5" width="300" /><br />
	<br />
	<br />
	<strong>PERSONAL SIDE <br />
	</strong><br />
	<br />
	<strong>Take on success:</strong> I am a very happy content person. Nevertheless, the day I do not want to do anything more, I would think that I am dead. From that point of view, there is a lot more to do. <br />
	<br />
	<br />
	<strong>Planning a holiday:</strong> I like things to be done perfectly and neatly. I make sure I do a lot of research on wherever I am going and know the places so that I won’t miss what I want to see and what we are going to do. I like my travel to be organised right from my ticketing and stay to every itinerary and the places where we are going. <br />
	<br />
	<br />
	<strong>Brand consciousness:</strong> If something is nice it does not need to be branded. I believe in being comfortable and wear what I think looks best on me. <br />
	<br />
	<br />
	<strong>Secret of beauty: </strong>Fitness is something I really believe in. You should be very fit because body is the vehicle that carries you. So you have to take care of it. <br />
	<br />
	<br />
	<strong>Spending leisure time:</strong> Reading and listening to music. I read more of philosophies and autobiographies. I love Indian classical music and mostly listen to Hindi music and instrumental and for English, I like jazz and more soulful songs. <br />
	<br />
	<br />
	<strong>Favourite pastimes: </strong>I love to sing and do gardening and am passionate about my house. Therefore, I love cleaning on my off days. <br />
	<br />
	<br />
	<strong>Better mother or a better boss: </strong>I try to justify every role - a good mother, good wife, good house keeper and a good business person. <br />
	<br />
	<br />
	<strong>Favourite Travel Destination: </strong>Paris among all because it is the most romantic and artistic city and also Venice. Turkey was also a very nice place where we went recently and Russia turned out to be a pleasant surprise. <br />
	<br />
	<br />
	<strong>Sporty indulgence: </strong>I used to be a badminton champion in my school. I adored playing volleyball and basketball but now I am more into gymming. <br />
	<br />
	 </p>',
			'published' => true,
			'created' => '2012-08-10',
			'modified' => '2012-09-17',
			'keywords' => '',
			'description' => 'Ritu Singh Vaidya, Managing Director at United Traders Syndicate Pvt Ltd (UTS), has enjoyed every role she has stepped into. When she walked on the ramp, she mastered it with her style. When she was on the stage, she cherished the music and touched the listeners’ heart.',
			'sortorder' => '548',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	)
)
$current_user = null
$logged_in = false
$xml = false
simplexml_load_file - [internal], line ??
include - APP/View/Elements/side_bar.ctp, line 133
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::_renderElement() - CORE/Cake/View/View.php, line 1224
View::element() - CORE/Cake/View/View.php, line 418
include - APP/View/Articles/index.ctp, line 157
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::render() - CORE/Cake/View/View.php, line 473
Controller::render() - CORE/Cake/Controller/Controller.php, line 968
Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200
Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167
[main] - APP/webroot/index.php, line 117