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			'article_category_id' => '52',
			'title' => 'Beyond The Budget 2011/12  August 2011',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">T</span><span style="font-size: 9.5pt;">he fiscal and monetary policies for FY 2011/12 made public in the third week of July have shown an appallingly anti-free market and anti-private sector tilt. The much touted about three-pillar concept that puts the government, cooperatives and the private sector at par is in itself an unfeasible proposition.</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">In a free-market economy, it is unfair on the part of the government to seek its share of the role in the market. At best, the government can be a facilitator. That means its role should be limited in introducing appropriate legislations, maintaining law and order and keeping surveillance to ensure a fair play in the market competition. That is in fact not a role of the government but its duty to be undertaken even to justify its very existence. An anti-free market argument suggest that the role of the government is essential at least to build large-scale infrastructures and to conduct economic diplomacy. But, squarely, it is the private sector tax that finances these activities, and the government is just a manager of it. If the private sector is exempted of all taxes in exchange of their contribution in building infrastructures too, one may not at all need the role of the government. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;"><img alt="fromtheeditor" border="1" height="315" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/ucpn.jpg" style="margin: 10px; padding: 10px;" vspace="10" width="400" /></span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;"><br />
	Moreover, the proposed budget (fiscal policy) plans to spend more as general expenditure (just to maintain the government) than what it plans to collect as taxes. Economic diplomacy has remained a rusted sword, unused ever since the debate began regarding its importance. For all these reasons, government's self-claimed role as one of the three pillars is thus a clumsy hyperbole.<br />
	<br />
	<br />
	There has been an extensive debate on recognising the cooperatives as an equal and parallel pillar. Apparently, the appropriate recognition it deserves is a sub-pillar under the private sector head. By all logic, effectively, there should be single pillar-economy led, invested, managed and operated by the private sector.</span><br />
	<br />
	<span style="font-size: 9.5pt;">But this policy has treated the private sector just contrary to this. The government has in fact done more harm by using its discretionary power to siphon away substantial amount of budget from development programmes to appease the Maoists. In this sense, the government role is becoming increasingly dangerous for the general people.<br />
	<br />
	<br />
	In comparison to the fiscal policy (budget), monetary policy has taken more balanced approach. For example, despite the announcement in the budget that saving and credit cooperatives would now on be supervised by the central bank, the monetary policy has chosen to remain silent on it.<br />
	<br />
	</span></div>
<div>
	<span style="font-size: 9.5pt; line-height: 115%;"><br />
	&nbsp;As the fact of the matter, both fiscal and monetary policies have come as mere rituals. The present day problems of the economy perhaps are beyond the jurisdiction and capacity of the realms of these policies. Therefore, to reviewing the economy from the present slump the leadership should first address the challenges of non-monetary and non-fiscal nature, but have direct bearings to the economic growth and prosperity of the country. <br />
	<br />
	<br />
	</span></div>',
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			'description' => 'The fiscal and monetary policies for FY 2011/12 made public in the third week of July have shown an appallingly anti-free market and anti-private sector tilt. The much touted about............',
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			'article_category_id' => '42',
			'title' => 'Budget As The Booster (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in;">
	<span style="color: rgb(178, 34, 34);"><em><span style="font-size: 10pt;"><img align="left" alt="stocktaking" border="1" height="127" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/bikram(2).jpg" style="width: 103px; height: 127px;margin:10px;padding:10px;" vspace="5" width="103" />By Bikram Chitrakar</span></em></span><br />
	<br />
	<strong><span style="font-size: 18px;"><span>Market still waiting for the breach of 380<br />
	<br />
	</span></span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 10pt;">(Nepal Stock Market Review for 26 June to 24 July, 2011)</span><span style="font-size: 10.5pt;"> D</span><span style="font-size: 9.5pt;">espite moving more than 18 points up during 26 June-24 July period settling at 329, Nepal's stock market is still in an indecisive stage. Technical analysis indicates that Nepse Index should cross 380 mark before the investors can be confident to commit good money in the bourse. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The major influencing factor of the review period was the government budget for the fiscal year 2011-12. This is the first time since the Constituent Assembly election of 2008 that the government budget was announced in time, i.e. before the fiscal year started. As a result, the planned government expenditure is expected to be spent this year which will help ease the liquidity crunch in the banking system and boost economic activities around these expenditures. Moreover, the budget has also announced some direct measures that are expected to boost the market. One major announcement was the reduction in the capital gains tax in share investment from 15 percent to 10 percent for institutional investors and from 10 to five percent for the individual investors. Also announced was relaxation in the deadline for the merger of banks and financial institutions by one more year till mid-November 2012. Banks that notify the authorities by that time that they have decided to merge will get a number of concessions including the tax as was announced in the last <br />
	year's budget.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;"><img align="right" alt="stocktaking" border="1" height="310" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock data august 2011.jpg" style="margin:10px;padding:10px;" vspace="5" width="400" />Therefore, the benchmark Nepse index started moving up even before the budget was announced and gained 18.66 points or 5.11% during the review month to settle at 365.43. The highest point during the month was on 20 July at 380.23 and lowest on 27 June <br />
	at 329.49.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Even a couple of days before the budget announcement, the Central Bank relaxed its strictures on loans to the real estate and housing sectors as well as on loans against the security of publicly traded share certificates. Similarly, the market is hoping for the banks and financial institutions to announce healthy financial positions when they make public their fourth quarterly financial reports. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Bulk trading of Friday, 15 July gained a proportion of a scandal of a sort as Friday is fixed for odd lots (smaller than 10 units of shares) transaction only.&nbsp;That bulk transaction distorted the NEPSE index on following Sunday, but Nepal Stock Exchange says that anomaly was fixed immediately. Securities Board has been asking the Stock Exchange to explain the discrepancy. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">During the review period Securities Board of Nepal (SEBON) announced programs for coming fiscal year including <img align="left" alt="stocktaking" border="1" height="281" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock data1 august 2011.jpg" style="width: 415px; height: 281px;margin:10px;padding:10px;" vspace="5" width="415" />Central Depository System, Credit Rating Agency and Mutual Funds. Likewise Monetary Policy for the year 2068/69 was released on 21 July affirming the pre-budget and budget announcements. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 8pt;">Performance by Sector<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Commercial banking sector was dominating the volume of trade in Nepal Stock Exchange also during this review month. This sector accelerated 27.23 points or 8.08% to close at 365.43. Manufacturing sector gained hefty 50.44 points to reach 587.34 while hydropower sector moved up 19.57 points to rest at 608.36.&nbsp;Others sector surged by 15.27 points along with 9.04 points up in hotel sector to reach 487.61 and 408.07 respectively. However insurance sub-index skidded 17.26 points or 4.15% to rest at 415.81. Development bank lost 0.05 points or 0.02% to <br />
	close at 296.4. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;"><img align="right" alt="stocktaking" border="1" height="299" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock data2 august 2011.jpg" style="margin:10px;padding:10px;" vspace="5" width="400" />Sensitive index that measured the performance of 117 blue chips scrip went up 4.08 points or 4.54% to 89.85 while the float index calculated on the basis of real transaction increased 1.62 points to 31.07. Total of Rs. 1689316916 was realized during review period from 4457556 units of share trade via 19340 transactions.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The accompanying figure illustrates the sector wise distribution based on the total volume of trade. As usual commercial bank sector covered the highest volume holding 46.69% of total trade followed by manufacturing and processing sector (43.57%). Hydropower sector occupied 3.62% and development bank sector 2.68% while other sectors made up for the rest. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Technically, Simple Moving Average (SMA) is performing higher in the short term as Nepse index is higher than 30 days SMA forming M pattern which may result into correction. In the long run it is still weak. Only breaching the level of 380 will create some acceleration.<br />
	<br />
	</span></div>
<div>
	<i><span style="font-size: 9.5pt; line-height: 115%;">(Chitrakar is a Stock Analyst with Jamb Technologies Pvt Ltd.)</span></i></div>',
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			'description' => '(Nepal Stock Market Review for 26 June to 24 July, 2011)Despite moving more than 18 points up during 26 June-24 July period settling at 329, Nepal's stock market is still in an indecisive.........',
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	(int) 2 => array(
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			'id' => '417',
			'article_category_id' => '47',
			'title' => 'A Diamond Merchant Via Hong Kong',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div align="center" style="margin-bottom: 0.0001pt; text-align: center; line-height: 120%; vertical-align: middle;">
	<span style="font-size:12px;"><img align="left" alt="dimnond" border="1" height="310" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ramesh.jpg" style="width: 319px; height: 310px;margin:10px;padding:10px;" vspace="5" width="319" /></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 12px;"><b><span style="line-height: 120%;">Ramesh Maharjan</span></b></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle;">
	<span style="font-size:12px;"><span style="line-height: 120%;">Chairman</span></span></div>
<div>
	<span style="font-size:12px;"><strong><span style="line-height: 115%;">R B Diamond Jewellers<br />
	<br />
	<br />
	</span></strong></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Born in a farmers family, Ramesh Maharjan is known as a successful entrepreneur who has taken his business to international levels. His jewellery business has expanded to USA. Today, he is Chairman of Maharjan Group that owns five companies - Nepal Diamond Company, RB Diamond Jewellers, Nenergy International, NB Nepal Builders and Maya Foundation. These companies are active in manufacturing, export and retail business of diamond jewelleries, energy, construction and even social welfare.</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">He has three jewellery stores in USA. He has recently diversified his business through the Maharjan Group that he established some years ago. R B Diamond Jewellers is the manufacturer, wholesaler and exporter of diamond jewelleries while Nepal Diamond Company deals in diamond and gold. Nenergy International is working in the area of developing hydroelectricity. Similarly, his company NB Nepal Builders is into the housing sector while through Maya Foundation he is involved in&nbsp;welfare of differently-abled people. Likewise, Maharjan is also Chairman of Nepal Gems and Jewellery Association and is associated with various organisations and associations.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan's childhood was largely spent in the agricultural milieu. His parents were farmers in Lalitpur but they had a sense that their children must go to school and get education. He passed his School Leaving Certificate from Namuna Machhindra School at Lagankhel. He passed Intermediate from Patan Campus. However, he did not take his education further.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan and his family did not see their farm leading them anywhere. “I did not see any future there,he says. Since my childhood I thought of doing things differently and in the best possible way.Maharjan says business was sitting deeply in his mind. He was concentrating on agriculture thinking he will land a good job some day.&nbsp;Apart from his works in the field, he was active in the local clubs, libraries, and in the locality and even won a local election. At times, he thought of going for foreign employment as well.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">His young romantic days were going on. Then, his family insisted him to get married. Though young Maharjan was determined to make his dreams come true before tying the nuptial knot, he surrendered to his family and married Sarita Maharjan with whom he was in love. Sarita turned out to be his lady luck. At that time, he was just 18. Sarita's family was in Hong Kong. Maharjan's in-laws invited him to Hong Kong as they thought there is not much scope in the country. Then, he took a job in Hong Kong at a wholesale company of diamonds as a helper.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">He proved his honesty and won the confidence of the bosses. So, he was gradually given more tasks of messenger and even handling banking transactions. They even tested my greed and left thousands of dollars in open drawers when I was the only person in the office. Next morning, they used to cross-check. I never thought of betraying them but was dedicated to perform well to get more salary in a legitimate way, he narrates how he passed the tests.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Working for the whole day had a benefit that he never felt homesick. He claims he worked from 5 am to midnight so that he can sleep quietly at night and does not have to miss his family back home. He was always conscious and determined that one day he has to return to Nepal. While in Hong Kong, he developed the interest in diamonds and also thought of taking something back. Then, he requested his employer to get him some training so that he can learn about diamonds. He says, My boss was a friendly person and he used to help us with everything as he understood we the foreigners will return if we were not given proper facilities. He was also happy to see my eagerness developing for diamonds and arranged for a basic training from the very next day. After completing his works in the office, he would go for training from 9 pm to 11 pm. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><img align="left" alt="diamond" border="1" height="238" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ramesh1.jpg" style="margin:10px;padding:10px;" vspace="5" width="350" /></span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	Maharjan shares, I acquired basic knowledge on types, grading and assorting diamonds. Then, I requested my employers for further trainings. Later, he was sent to Mumbai for a six-month training at the company's factory for cutting, grading and polishing. I was there just to gain knowledge on diamonds. So, I did not even cross the railway station and kept myself fully focussed on my training. In the beginning, I felt quite uncomfortable as I did not even know how to hold a diamond properly. Gradually, I learned everything, he recalls. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">There too he spent the whole day pondering over the diamonds. He claims he grabbed things quickly and could separate colours within two weeks. As he learnt things he also started working there though he was not being paid. At the end of six months training, he was found to be performing&nbsp;well like veterans of the industry, he claims. When he returned to Hong Kong, the company's views about him changed. He was promoted to sales department. However, he did not stop learning while on the job. He says, For a couple of years more, I learnt from the market on pricing and quality and even on the ways of marketing.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">After staying for around seven years in Hong Kong, he decided to return to the country as the family also asked him to do so. When he returned, he was not alone. He had knowledge, skills and even money to invest in the business of his own. For three months, he carried out a kind of market survey, leaving no jewellery shops unvisited. In three months, he found expertise missing from the sector in his country. The way of working was not appropriate either. Then, I felt in markets like Nepal, such valuable things can only be sold with a guarantee and not as use-and-throw item, he says.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">He sees a lot of artisans and craftsmen&nbsp;here but their ways of working worry&nbsp;him. Maharjan believes that best masterpieces can be created in Nepal itself, which will have the potential to be sold anywhere in the world. I encourage people in this business to create fusion of our traditional knowledge with the modernity, he says. He does not see any competition in the field of creativity.</span></div>
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<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan has always prioritised doing something new than simply following what others are doing in the crowd. That is the mantra to be on the top, he believes. Then, he initiated manufacturing in a professional manner as he was not satisfied with the quality of locally-made jewelleries.</span></div>
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<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">For Maharjan, business is more than profit and margins. He believes jewellery business cannot sustain without goodwill and trust. He describes, Customers must be assured that they will get back cash upon returning the products. My target is to do marketing through quality rather than advertisements. Maybe, that is why he claims that he has never advertised his jewellery store or even kept a billboard with the showroom's name. He claims he gets customers through trust and goodwill gained by selling quality products.</span></div>
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<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan sees the jewellery market growing in the last four years with a definite change in lifestyle of people in Nepal. In the past, only head of the family used to earn but now everyone makes some earnings. They can afford what they desire for. Rather than copying others, now people want something unique to look different,he explains. He adds that it is Nepali culture to invest in jewelleries and houses as&nbsp;assets rather than luxury.</span></div>
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<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan says he is very much satisfied with what he is doing. His business philosophy based on service rather than just selling precious metals has grown multinational. He has stores at Manhattan Fifth Avenue, Alaska and a distribution point in Los Angeles. In 2005 the first store was opened in USA on his wife's insistence. Now, Maharjan's in-laws are looking after the stores there. We wanted to see how it works outside and we had that confidence too. We were overwhelmed by the response of people when we put up a stall for the first time at a programme organised by Nepalis in America,he proudly shares. He claims he sold jewelleries worth US$ 10 thousand within half an hour. Then, the first store in Manhattan was opened with the help of the company where he worked in Hong Kong. He says he still has good relations with the company, where he learnt the tricks of the trade. Now, the major export destination of finished diamond products from Nepal is the US itself and these products are exported through R B Diamond Jewellers.</span></div>
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<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Under his group, more than 150 employees are working. Maharjan claims that he treats them as his family. “It depends on them where the company will head for. I believe good people should prosper and succeed. I take care of their comfort and satisfaction,he shares his ways of motivating staff. He says problems are sorted out by discussing them. He has also given them assurance that they don't have to worry about their family's health and education. Maharjan also claims that he can't bear the sad faces of employees and cares that they don't get hurt.</span></div>
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<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">He is planning to expand his business further to handicraft. Maharjan's aim has always been to promote the local knowledge and craftsmanship. In his free time, Maharjan concentrates on the designs and obtaining more knowledge in the stones. He is currently busy designing for the 2012 collections. He says he can ponder over a stone for hours. Apart from that, he also likes to read spiritual books and contemplate on spiritual aspects of life. Maharjan says he is content with what he has got and does not think much about himself and his luxurious wish list. Even during leisure he plans about his companies. He says his family has always been with him even in the business so he feels lucky that he does not have to fight over managing time.</span></div>
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<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan goes back to past, I used to feel that I don't have any vision. From my seniors, I learnt a lot about life and even doing business. I am here all because of such guiding hands and suggestions. He also has the hope that his second generation will take his business further. He expects their education, energy and his experiences to lead the business in future.</span></div>
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<div>
	<span style="font-size:12px;"><span style="line-height: 115%;">The 47 year old Maharjan is planning about making a foray into the handicraft business. Apart from that, he is also looking forward to expanding outlets all over the US. <br />
	<br />
	<br />
	</span></span></div>',
			'published' => true,
			'created' => '2011-09-06',
			'modified' => '2012-09-17',
			'keywords' => '',
			'description' => 'Born in a farmers family, Ramesh Maharjan is known as a successful entrepreneur who has taken his business to international levels. His jewellery business has expanded......',
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	(int) 3 => array(
		'Article' => array(
			'id' => '416',
			'article_category_id' => '46',
			'title' => 'Joseph Massey',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size:14px;"><strong>Interview : August 2011 - 'Second Phase Of Growth Would Depend On Developed Capital Market'</strong></span></p>
<p>
	<span style="font-size:14px;"><strong><br />
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<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><img align="left" alt="" border="1" height="200" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/int1.jpg" style="margin:10px; padding:10px;" vspace="5" width="120" />Joseph Massey is Chairman of South Asian Federation of Exchanges (SAFE), a forum of exchanges with 32 members from South Asian Region, UAE and Mauritius. SAFE works for the development of capital markets in the region and offers itself as a platform to these exchanges for global integration. Massey is also the Managing Director and CEO of MCX-SX, which currently offers currency derivatives trading and is the most recent entrant to India's public-trading exchanges. He has over 18 years of experience in the corporate and financial arena and worked with organisations like Life Insurance Corporation of India, the Reserve Bank of India (RBI), Stock Holding Corporation of India, Multi Commodity Exchange of India Ltd, Interconnected Stock Exchange of India and the Vadodara Stock Exchange. Massey was in Nepal during the executive committee meeting of the SAFE from July 6 to 8. In an interview with Gaurav Aryal of <i>New Business Age</i>, Massey shared his views on capital markets of South Asia and the current status of the Nepali share market. Excerpts:</span></span></div>
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<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>What is the scope for growth of secondary markets in South Asian countries?<br />
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	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">I think, post-global crisis, this region is emerging as a high growth region because of the natural demand that it has got and also the governments are very keen to develop each sector so that more employment is created and global investors are willing to come and actually invest. If you look from a capital market perspective, there is demand both from primary and secondary markets. Whichever country you take in the SAARC region, it still has to make tremendously large progress in terms of domestic penetration. That market is huge. Then, we have another opportunity which is in global market. I think all economies have very large opportunity to develop in the secondary market.</span></span></div>
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	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Except India, other countries in South Asia have not been able to develop much in this field. What is the problem you see?<br />
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<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">There are couple of prerequisites for the market to develop. Indian market has a history of 130/140 years. Over such a long period, we have developed the culture of investment. Despite that, we have penetrated the market relatively less. Indian market is&nbsp;more developed because we have more instruments, more investors, more companies, good infrastructure, clearing corporations, guaranteed good regulation, and infrastructure which is comparable to the best in the world. However, there are many products that we still don't have and now India is aspiring to create those products. India has progressed but it still has a lot to do. Rest of the countries, based on their position in the cycle of economic development, could have reached some level of development in the exchanges. We expect that to happen over a period of time. When global fund comes to one region or one country, visibility of the entire region gets enhanced. Today, you see a lot of funds coming to India. Soon those companies will come and set up their companies in India. Once they set up their companies and invest there, they will also gradually look for what market opportunities are there in the region. India is gradually opening up and Indian citizens can invest outside. Once we open up the market more, a lot of investment from global market will come to India and from there they will go to the other countries of the region. I think the level of development depends on the scale of economy and how much it has developed. But it need not necessarily take the same length of time for each country to reach the same stage of development. We can cut short the time by learning from other's experience. Highlight</span></span></div>
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	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Foreign institutional investors and foreign direct investors are still hesitant to enter this region whereas they are going to Taiwan, Singapore etc. Why so?<br />
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<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">These countries have been rapidly growing for a very long time. So, the global communities have already identified those destinations. As a result, in&nbsp;the last 20/30 years, their regulatory system and infrastructure have developed so much that the global investors don't see a difference between these countries and their home markets. In SAARC region, some countries have progressed well while others have not. But we all know the model that we have to implement. We just need a more concentrated effort in finding out what are the gaps; what they have and what we don't have. And, we can put regulation and infrastructure in place. The domestic demand being so large, we will see the same level of capital coming in this region eventually. Today, we are not there but we need not take another 30 years to reach there. We can reach there in next five years.</span></span></div>
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<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>What is the objective of creatig a South Asian network of stock exchanges?<br />
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	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">I think we are all determined to do this. We understand each country has its regulatory mechanism and its own capital account laws. But we want to sensitise the countries that economies of scale will be realised if this region can work as one unit. Relatively, hard infrastructures like road, transport and others may take time to be developed. Financial market is soft infrastructure which can happen easily. The secondary and tertiary gains of developing an efficient financial market are very large compared to manufacturing and few primary sectors. So, instead of developing the manufacturing sector first and then going to the financial services, it would be a good idea that in this region we shift focus to financial services and the advantage of financial services trickle down to the rest of the economy. Our cost of fund will reduce and we will be able to raise more funds for developing infrastructure, for economic activity and as a result all benefits will flow such as more jobs, better education and necessary infrastructure. So, more capital gets attracted and suddenly we will get out of the vicious cycle. Today, we are in a vicious cycle of low capital, low infrastructure and therefore, low investment. All countries can't achieve the same level of infrastructure simultaneously, but when some of them achieve a level, the trickle-down benefit will happen to the entire region.</span></span></div>
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<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Protection of small investors in capital markets is taken as a major challenge. How can such network protect the&nbsp;investors?<br />
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<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">At SAFE, we have identified the global best practices. Each country has adopted these global best practices which are prescribed by IOSCO (International Organisation of Securities Commissions). What SAFE does is that the good practices of one country are shared with others. We don't wait for those countries to learn these things over a period of time. We are sharing these experiences with each other so, until real business can get done, we can share a lot of knowhow and ensure that the level of knowledge of each one is the same.</span></span></div>
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<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Why are South Asian governments hesitant in opening their markets for international investment?<br />
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<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">We are saying that we need to have investor protection. So, should we open the market or not? The first level of investor protection is that you have better infrastructure for trade, better laws, and more capital to protect them. All these things can come if you have a market of significant size. We want the best protection to be given to the domestic investors. But we cannot provide that as our markets are very narrow, we don't have all the products, we don't have large number of investors, our trading volume is small and the number of companies is low. You know that the total income from such market will be naturally very less. So, we need to invest more in increasing the capital, improving law and, giving the investor better safety. If you widen the investor base then obviously it will generate more resources. You will be able to draw more resources into the infrastructure, set up a clearing corporation, depository, have best tools and educate your people better. So, you need the capital market to be very efficient. Today, each country has domestic investors but they are very few. We need institutional investors who can bring in big money and take a deeper and longer view. So, once we complete this, we have to complete the market by getting good quality investors by offering all the products available today in the global markets. Once you create these two, your protection will improve; your market will become safe because your market is aligned to global market. If the investors are investing in the growth of Nepal, you get a diversified base of investors in which some are taking a view with 10 years, some with five years, and some with just one year or less. When you get the mix of all of them, your market will be stable. Some may go out but many others will stay.&nbsp;</span></span></div>
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<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>How do you see the future of capital market in this region?<br />
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<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">I think there are three or four facts which indicate that the future of capital market is enormously good. All the countries in this region more or less have the same level of development. They are developing and gradually going up the scale. In the initial phases, all of them are dominated by the public sector enterprises. Public sector enterprises naturally have the challenge of resources. Since the demand of economy is very large, there is a requirement of private capital and private production in order to supply that requirement which the public sector will not be able to deliver. The public sector has reached its level and now the private sector has to come up. It has to come up in infrastructure, education, manufacturing, services and everywhere. For developing all these, the people need risk capital. The risk capital can only come from the capital market. So, I think one is dependent on other. If you have a robust capital market, more people will be able to raise capital and set up an economic enterprise which will create more jobs and more business ventures. It is a cycle. Every economy has realised that we have gone through the stage where the public sector was dominant and&nbsp;banks had a major role to play. Second phase of growth is going to be dependent on developed capital market that should have equity, bond, derivative, service management etc. so that people can raise short term money and long term money. Then, we will see private enterprises start coming in. </span></span></div>
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<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Experiences have shown that the derivative trade has distorted the natural growth of the market. Can South Asia region avoid such distortion?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><img align="right" alt="inteview" border="1" height="287" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/int.jpg" style="margin:5px;padding:5px;" vspace="5" width="400" />SAFE is advocating an exchange traded market where derivatives get traded on the exchanges. They are safe because the counterparty has a guarantee from a clearing corporation. They are better risk-managed, more tightly regulated, and more transparent. As a result, exchange traded market is always a safe market. In 2008 and in the earlier 1998 crisis, what went wrong was outside the exchanges. So, the lesson from the 2008 crisis is that&nbsp;we should get more and more products on the exchanges. Second lesson is we can have laws which are similar all over the world. So, G20 is now advocating that we should have such norms and regulation that are similar in all countries. The advantage SAARC region has is that we don't have to make the same errors some other countries have made. We now already have better regulation on banking system and in the securities market, we have all the institutions developed, most countries have depository, clearing corporations and most countries now trade on electronic system. Having built an infrastructure that is similar to global environment and global rules that are gradually becoming common, I think we are operating on a much safer market.</span></span></div>
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	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
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<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Many prominent stock exchanges like those in Europe and Japan have either crashed or remained stagnant for a long&nbsp;time now. Is it so because those economies have reached the point of saturation?<br />
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<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">Post-2008, two things have happened. While the exchange traded markets are same, their economy is slowing down and the financial system has observed a very large amount of loss. It will take a long time for them to come out of these losses that they have suffered outside the exchanges. Secondly, those economies are diversifying to come back to high growth phase. In doing so they are investing outside the country. You can't increase the economic growth significantly if the economy is already developed. So, they will only have to look at investing and business opportunities in rest of the world. The good news is while Europe and the US are slowing down, Asia and Africa are&nbsp;growing. If you look at world growth perspective, today there is more demand than it was before. According to a recent news, Boeing is supplying US$ 30 billion worth of planes but all these planes are going outside US. The world economic structure is changing. There is more demand outside Europe and US. And the world community is happy. It does not matter whether I sell my planes in US or outside US. In this process, companies benefit, the society where they work benefits, overall the whole world benefits. So, until the global market continues to be on a growth stage, I think it is a good news and more and more of this will continue to happen. Today, we are living in the era when the world market has more or less started looking similar or at least it has aspirations to look similar. So, we are getting into more openness, more transparency, similar regulation, more international trade. The growth of one will cause growth in other. I think the world economy will continue to grow, especially these emerging economies and developing countries will continue to grow for next 30/40 years and it is good news to the rest of the world.</span></span></div>
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<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Do you see the possibility of instruments and mechanism like regional mutual funds in South Asia to invest in the share market?<br />
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<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">One of the discussions that we had both with the SAARC secretariat and the central bank here was in this very line. We should try and create some kind of regional hub in which we could have institutions which are not only taking domestic view but are taking the regional view. It could be regional investors, regional mutual funds and exchanges with cross border trading. It will depend on how much time it will take for each regulator and each country to digest that. But I think in the foreseeable future, in next two to three years time some of these concepts will actually become a reality.</span></span></div>
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<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Now, the commodities future trade is also booming in the region. And they seem to have posed sort of regulatory challenge. In Nepal such market is blamed to have facilitated capital flight. How is your view? <br />
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<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">Commodities markets are markets for risk management. Secondly, they are market for giving price signals of what is expected to happen in future so that policy makers can take policy measures three months or six months in advance. Third, the physical market for commodities lack transparency, they are fragmented. To give a common view to the rest of the world on what is happening in this market, whether there is crisis building up or not you need to have an efficient futures market. An efficient futures market also brings an efficient physical market. I don't agree that commodities market cause flight of capital because it is essentially a market for risk management. People will not invest very large amount of money until they invest in the physical market. Futures contract should be for one, two or three months which is not a long-term investment. Typically, flight of capital takes place because of other natural economic indicators like high inflation, low growth of economy and interest rate structure. The domestic capital has to remain here and does not have an option. But if it is global capital, it goes to the most efficient market which has high growth, low interest bearing and good opportunity for growth. Commodities markets are rational markets. These markets will look at the fundamental demand and supply. Based on the fundamental demand and supply, price recovery will take place. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
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<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">If someone is buying wheat, cotton or gold, that means the price of that commodity in the future can go up. But the price&nbsp;of a commodity futures contract will go up only if the physical commodity goes up. Physical gold is going up because someone is buying physical gold. They are too integrated together. Physical market demand and supply is dependent on actual consumption and actual supply. I don't think we should panic at the price fluctuation in the commodities exchanges. However, if we can have&nbsp;regulatory system, more transparent system, better safeguard on exchange, clearing corporation it will eb better because then some of these worries&nbsp;will go away. </span></span></div>
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<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Of late, the share market index as well as confidence of investors has remained low in Nepal. How can these be bolstered up ?<br />
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	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">There are no shortcuts to it. When an economy is going through a low cycle and if you only have domestic market, the entire country has one view. You don’t have a contrary view from anyone else because you only have individual retail investors. Their appetite to take a long term call is very minimal. So, when your market is going through slowdown, the individual investors will be more scared so they will also take a view which is not more than a day. Now, you need someone who can take a view which is for one month, one year or five years. This can only be done by institutional investors. So, it is paramount that Nepal tries and builds up domestic institutional investor community so you can put mutual funds in place. I don't know how your pension industry is, but I can be pretty sure that some of those funds will come and they will invest in the capital market. And insurance industry too can invest in capital market. This is level one. You now have a person who is willing to take a call which is a longer term. But still they are domestic and have a view which is not very diversified. If you can adjust global investors inside, you will have a view which is very different. They are willing to take a call which is much longer, in much larger quantum of money because now the stocks are available very cheap. Their cost of borrowing will be less. They can come and do large borrowing and as a result the market will grow up. So, in a market which goes to such a long term low cycle, the only way to break out of the cycle is by ensuring that institutional money both from domestic and global markets gets attracted to the country and I think you should do that.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	<br />
	</span></span></div>',
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			'created' => '2011-09-06',
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			'description' => 'Joseph Massey is Chairman of South Asian Federation of Exchanges (SAFE), a forum of exchanges with 32 members from South Asian Region, UAE and Mauritius. SAFE works....',
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	(int) 4 => array(
		'Article' => array(
			'id' => '415',
			'article_category_id' => '48',
			'title' => 'Nepal Can't Be Overpopulated (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle; text-align: justify;">
	<span style="font-size:12px;"><i><span style="line-height: 120%;"><img align="left" alt="madan" border="1" height="136" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/img(6).jpg" style="width: 112px; height: 136px;margin:10px;padding:10px;" vspace="5" width="112" />By Madan Lamsal</span></i></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(134, 55, 59); letter-spacing: -0.05pt;">E</span><span style="letter-spacing: -0.05pt;">ver since the Central Bureau of Statistics (CBS) started to make the findings of the national census public, people have started wondering whether Nepal is really overpopulated. People have started to ask the same question to several experts and not so experts, politicians and economists. And the answers that come about are very interesting.&nbsp;</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;">Some samples of the answers: Nepali Congress leaders say: Nepal is not overpopulated. The reason as furnished by a leftist politician is that, for capitalists like the Nepali Congres ,the bigger the population, the higher the voter base. So the population is less until the Congress gets enough votes to form the government.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;">If you ask a Hindu or a Muslim or a Christian fundamentalist, the answer is still no. Because, to religious leaders, the fear of being outnumbered by the other religion is persistent and they believe that Pashupatinath, Allah or Christ will come to feed any size of population.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.15pt;">But, an&nbsp;immigration officer is most likely to say yes, Nepal is overpopulated ! This is because he must be getting tired of processing thousands travel documents of youth going abroad everyday. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;">But the economists are unlikely to say either yes or no. They will only say: the moment a country has overpopulation, it will not be able to sustain any addition in the population. Some of them may even advise you to read Danish economist Ester Boserup who made strong case in support of population growth for the economic benefit of the country. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;"><img align="left" alt="madan" border="1" height="399" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/economy.jpg" style="margin:10px;padding:10px;" vspace="5" width="350" />Whatever the people of different background may say, It is futile to worry about the size of the population. Because, more people, more production, more money, more consumption, more profit to the companies and more revenue to the government and more donations to the political parties and opportunity for more extortions to the affiliates of political parties of different hues and colours. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;">Even with a population close to 30 million we have been able to feed ourselves. We don't need to worry about gainful employment here within the country, as overseas employment will be in abundance as long as Nepalis agree to work for the pay just enough to foot the travel bill and payback the loan gotten to fly abroad, after five years of work. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.15pt;">This means your country's income grows only when your people go abroad and send in money from there. That was so simple to understand for our forefathers who started the system of Lahure, i.e. sending people abroad (Lahore at that time) for earning. The same is being done today. And this should be expanded. This requires our population to increase further so that more people will go abroad and Nepal will earn more. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: 0.1pt;">Nepali economy is live and kicking just because of a growing population. Not only migrant workers, see it from every angle, the population growth is a must for economic growth. As more babies are born,&nbsp; the more diapers will be sold and there will be higher profits for such companies and a bigger pay rise to their&nbsp; employees.&nbsp;Therefore, clearly, the hue and cry of overpopulation in Nepal is an absolute anti-thesis to country's economic growth and people's well-being. </span></span></div>',
			'published' => true,
			'created' => '2011-09-06',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'Ever since the Central Bureau of Statistics (CBS) started to make the findings of the national census public, people have started wondering whether Nepal is really........',
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	(int) 5 => array(
		'Article' => array(
			'id' => '414',
			'article_category_id' => '40',
			'title' => 'Demand And Supply (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The story of power position in Nepal is that of highest potential and lowest consumption. The electricity demand in Nepal is increasing by about 10 per cent every year and close to 40 per cent of the Nepali population has access to electricity through grid and off-grid systems. The main load centre is the central zone which includes the Kathmandu Valley. Nepal owns a number of hydropower plants with a total installed capacity of around 650 MW which includes several small and medium hydropower plants owned by Independent Power Procedures (IPP). A significant amount of energy is also supplied by thermal (Diesel) and solar photovoltaic power plants besides the micro hydro plants in hilly areas. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">There is a huge power demand-supply imbalance which is evident from load shedding implemented over the last several years now. At present, Nepal Electricity Authority (NEA) is supply -deficit. While the peak power demand in wet season is more or less met by the supply, the deficit during the dry season is very high resulting in power outage for as much as 16 hours a day in the capital itself. According to a forecast, the power misery due to supply-deficit is likely to continue till at least 2013-14, when, among others, Upper Tamakoshi (456 MW) is expected to be commissioned.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Constraints</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">There is no denying that lack of development of indigenous energy sources has resulted in an over-dependence on fuel import. This drains a significant portion of the nation’s foreign exchange earnings and poses threats to long-term energy security and to the environment. Pradhan reasons, “We can’t always depend on imported energy so we have to develop hydropower as it is the cheapest form of energy. There is no alternative to hydropower.”&nbsp;The government doles out billions of rupees to buy petroleum products when prices get higher whereas the subsidy given to other energy sources pale in comparison. There should be a level-playing field without any discrimination. “The state’s attitude is the major hindrance towards attracting private sector investment in renewable energy,” alleges Shrestha. He adds that the government should let petroleum products compete with other energy products instead of being biased towards it. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Another problem is that of major differences in opinion among the energy experts who don’t seem to agree on practically anything.&nbsp;A disagreement among experts also puts the government in a lot of difficulty. A common agenda for producing 3,000 MW is the need of the hour, probably leaving disagreements for the future.&nbsp;Shrestha explains, “I personally believe there are people in Nepal who have a lot of knowledge and an idea regarding the energy sector but disagreement takes precedence among them. My request to these experts is to first ensure a position where we can generate about 3,000 MW for basic need.”</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Potential</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Bio-gas potential is immense from the perspective of Nepal’s renewable energy sector. More than 250,000 bio-gas plants have been established so far mostly in remote areas where there is no electricity. A six cubic meter bio-gas plant can generate thermal energy equivalent to one standard LPG cylinder in about 24 days. In other words, bio-gas is providing 250,000 LPG cylinders worth of energy in Nepal. This is certainly an achievement that can be taken forward. Cow dung was used for operating bio-gas plants earlier, however, a lot of experimentation has led to a state where anything bio-degradable is equivalent to cow dung. Therefore, it is viable to increase the number of bio-gas plants in Nepal. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal receives ample solar radiation with approximately 300 days of sun a year. The development of solar energy is thus reasonably favourable in many parts of the country. As per a report by Alternative Energy Promotion Centre (AEPC) under the Solar &amp; Wind Energy Resource Assessment in Nepal (SWERA), the commercial potential of solar power for grid connection is 2,100 MW. Solar panels are a highly feasible option for families using minimum energy for lighting purposes and can be installed for Rs 3-4,000 per household. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">The third largest indigenous biomass source of energy in terms of consumption is agricultural residue in Nepal which directly comes from the agricultural crops. It is therefore indicative that more than two-thirds of the total energy requirement of the country can be supplied solely from agricultural residues while considering the heating value of the resources. More than 70 per cent of the waste coming out of big municipalities is bio-degradable. This can be processed at big bio-gas plants and used for generating energy rather than sending it to landfill areas. However, for this to happen, the waste has to get collected in a segregated manner by applying ways to sort bio-degradable waste right at the source. It requires discipline though to make the users dump ‘right waste’ in designated containers themselves. Shrestha cites the example of sewerage treatment as a serious practice in most cities of the advanced countries where water is drained back in the river afte</span><span style="letter-spacing: 0.35pt;">r taking out the energy and purifying it. He emphasises that waste management is absolutely crucial in the <br />
	present context. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The major impact of power outage is on industry as it needs 1,100 gigawatt hours (GWh) of energy for the industrial sector which is about 40 per cent of the total electricity produced by NEA. It has close to 1.77 million subscribers of which 1.2 million households consume minimum energy for lighting purposes. “If we could equip these households with 100W solar panels, we can easily save 500 GWh which can be diverted to industry,” Shrestha calculates. He adds that the government must take initiatives to this effect by providing tax relief and subsidy of some kind to the households and help the nation’s industries avert collapse. On the other hand, NEA won’t be affected adversely because the industries will be there to make up for its ‘apparent loss’.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal has over 6,300 rivers and rivulets and thousands of hills and valleys. The perennial nature of Nepali rivers and the steep gradient of the country’s topography provide ideal conditions for the development of some of the world’s largest hydroelectric projects. “If we could block the water in these valleys, we can conserve the rainwater and it can be a huge asset,” Pradhan advises. Hydropower could be the engine of growth for Nepal as it would offer opportunity to create employment, alleviate poverty and provide basic services including good governance. The development of this sector can be a potent contributor for transforming villages, cities and societies in Nepal into prosperous and inclusive economic zones. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Looking Forward</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal’s imports have increased by Rs 25 billion due to severe power cuts (Rs 12 billion-diesel, Rs 3 billion-electricity import, Rs 2 billion-battery, Rs 5 billion-inverters and generators, rest on other means of energy like candles etc). The country is already facing a trade deficit of Rs 300 billion, which makes it mandatory for Nepal to find measures towards minimising imports. Pradhan says foreign investment can come for the hydropower sector as it is the only area in Nepal for which investors don’t have an alternative. “The FDI for other sectors may get diverted to other countries due to various reasons such as low wages, security environment and tax free policies. However, in order to exploit the water resources of Karnali River, for example, they have to come to Nepal,” he elucidates.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Pradhan further recommends not to link water resources to nationalism. He elaborates, “Saudi Arabia makes oil available at the cheapest rates to its people and sells surplus oil for national development. We should also adopt this policy: </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The water unused today will go in waste; this is a time bound business.” He asserts hydropower is a sustainable source of energy for Nepal as well as for the region and has the potential to minimise imported energy. He says if Nepal can focus on water management, it can not only eradicate its domestic power woes but also play a regional and global role energy-wise. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Recent developments indicate that our focus will be on reducing load shedding in the next five years or so. “My observation is that energy crisis will continue in the next five years,” says Dr Shrestha. He adds the energy sector does not hold out a very bright future and will have many problems but Nepal can certainly make some valuable progress in attaining energy independence. He also warns experts and authorities against depending on a single energy source such as hydropower and instead asks them to work for an appropriate energy-mix. “We must determine our total energy-mix scenario over the next five, 10 or 20 years now,” he asserts.<br />
	<br />
	</span></span>
	<p class="newsubhead" style="margin-top: 0in;">
		<span style="font-size: 13.5pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">Power Projects Licenses </span></p>
	<p class="newsubhead" style="margin-top: 0in;">
		<span style="font-size: 8.5pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">(List updated June 03, 2011</span><span style="font-size: 10pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">)</span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Issued Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;Survey License for Generation (Below 1 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 202 projects = 149.769 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (1 to 25 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 220 projects = 1505.661 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (25 to 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 57 projects = 2966.68 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (Above 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 34 projects = 10854.12 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Construction License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 61 projects = 1385.806 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">List of Applications</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (Below 1 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 758 projects = 642.976 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (1 to 25 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 581 projects = 3932.34 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (25 to 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 69 projects = 3840.89 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; letter-spacing: -0.15pt;">Application for Survey License for Generation (Above 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 45 projects = 16798.72 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Survey License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 71 projects = 2596.117 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Construction License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 3 projects = 23.5 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">GON Reserved Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="margin-top: 7.45pt; text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">GON Reserved Survey License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 27 projects = 1627.699 MW</span></span></p>
	<p class="BODYTEXT" style="margin-top: 2.5pt; text-indent: 0in;">
		<span style="font-size: 14px;"><i><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Source</span></i><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">: Department of Electricity Development, Ministry of Energy</span><br />
		</span></p>
</div>',
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			'created' => '2011-09-05',
			'modified' => '2011-09-05',
			'keywords' => '',
			'description' => 'The story of power position in Nepal is that of highest potential and lowest consumption. The electricity demand in Nepal is increasing by about 10 per cent every year and close to 40 per.....',
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		'Article' => array(
			'id' => '413',
			'article_category_id' => '40',
			'title' => 'SHADOW OF ENERGY (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 8pt;">Despite immense potentials for electricity generation, Nepalis have to suffer long hours of power-cuts. This affects its industrial output as well, which in turn makes Nepal a less attractive destination for foreign investments. To come out of the current mess, experts offer many models but the problem is they donâte agree on which one to pursue in what degree. In this cover story, New Business Age unravels the industry and the roadblocks.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<b>&nbsp;</b></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 10.5pt; letter-spacing: -0.05pt;">N</span><span style="letter-spacing: -0.05pt;">epal's current energy situation is in dire straits, to say the least. Despite its potential to be a credible power producer even to the extent of exporting surplus energy, it has miserably failed at meeting its own domestic demand.&nbsp;A mammoth 68 per cent of our energy needs are met by exploiting forest resources which has resulted in reducing Nepal's forest area to a mere 30 per cent. If deforestation continues at the current rate, one should not be surprised if we have no forests to talk about in the next three to four decades. </span></div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">With increasing population, Nepal will not be able to fulfil its energy requirements if it depends so heavily on the declining forest resources. The consumption of petroleum products has grown incredibly over the past decade-and-a-half so much so that we spend more money on importing petroleum products than we earn by our total exports. “Nepal will have to take a World Bank loan in 2020 only to buy petrol fuel if its import continues unabated in the present manner and that will be a total disaster, says Dr Jagan Nath Shrestha, Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University.&nbsp;</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.05pt;">Nepal still does not have its own reserves of gas, coal or oil in economically significant quantity. Although its most significant energy resource is water, less than one per cent of hydropower potential is currently harnessed. Nepal is extremely lucky in terms of clean water over 225 billion cubic metres of water flows down its rivers every year which is approximately 20,000 litres of water per person per day. Even if Nepal was an aggressive agro-economic country, it would consume less than 5,000 litres per person per day. Looking at this surplus, Er Gyanendra Lal Pradhan, Executive Chairman of Hydro Solutions Pvt Ltd, says, “I see no reason why we should not exploit our water resources for meeting domestic water needs as well as exporting the daily per capita surplus of 15,000 litres of water.” </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.1pt;">It's no secret that Nepal's economic and social development is critically hampered by its inadequate energy supply. Moreover, developing and exporting surplus energy resources can help develop other sectors and enable the country to import other products that cannot be produced indigenously. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.05pt;">Energy Mix<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The total energy consumption of Nepal currently stands at over 10 million tonnes of oil equivalent (TOE). While close to 90 per cent energy is derived from traditional resources, the rest comes from commercial and renewable sources. Nepal’s electricity generation is dominated by hydropower and only one per cent energy need of the country is fulfilled by electricity. Bulk of the energy need is dominated by fuel wood (68 per cent), agricultural waste (15 per cent), animal dung (8 per cent) and imported fossil fuel (8 per cent). </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.05pt;">Energy Consumption<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Energy mismanagement has been plaguing the country for a long time now. It has become absolutely important to focus on energy resources that promise sustainable supply. “The total energy availability and the accessibility, impact and applicability of renewable energy are ever so growing because energy consumption of electronic devices has come down to from about 1/4th to 1/100th,” claims Dr Shrestha. He adds that people have to become conscious about and inculcate a habit of conserving energy. For example, every kilowatt hour (kWh) of energy saved is equivalent to one kWh generation. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The overall energy consumption in Nepal is largely dominated by the use of traditional and non-commercial forms of energy such as fuel wood, agricultural residues and animal waste. The remaining energy consumed comes through commercial sources such as petroleum fuels, coal and electricity and renewable sources. It would be worthwhile to mention here that the share of commercial sources in Nepal’s overall energy consumption has increased considerably in the last decade-and-a-half. The renewable energy consumption has been registering an annual growth of more than 15 per cent on an average. And, within the renewable energy system, solar energy consumption is increasing at a more-than-steady 200 per cent annually. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">A staggering 18 million metric tonne of forest timber is cut every year while experts say that the sustainable level is only half of it. There are 5.8 million households in Nepal but only 400,000 households use Improved Cooking Stoves (ICS). These households using fuel-efficient stoves save half the energy. Barring the urban areas where ICS cannot be brought to use, a good 3 million households in rural Nepal can benefit from this improved technology. If this endeavour could be pursued in a focused manner, the consumption of timber-for-fuel can come down to half i.e. 9 million metric tonne in the next three to five years. This could help the forests grow and make the forest usage more sustainable. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The new boundary of Traditional Energy Resources (TER) has extended beyond the territory of forestry. Biomass is the major source of energy, particularly in rural Nepal as availability of biomass resources for energy production exists in abundance. The new territory of bio-energy now encompasses agriculture, livestock, industry and human settlement sectors as well. However, the use of some traditional energy sources is neither sustainable nor desirable from environmental considerations.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">More than 300,000 households use solar electricity in Nepal whereas an average of four-five kWh per square metre per day of solar energy can be generated in Nepal. The solar dryers have extensive use in the rural areas for drying of agriculture products and food. Solar Cookers are being used to cook food which saves fuel and helps deforestation to slow down. For a large part of the rural population consuming low electrical energy, there is no viable alternative to solar electricity. Besides, solar electricity generating systems do not need fuel or extensive infrastructure and are easy and quick to install. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Water is plentiful in the rugged hills of Nepal and micro-hydro provides a more practical and cost effective alternative. An estimated 150,000 households benefit from the micro hydro sector in Nepal and it has greater potential to be a major source of energy in the rural areas. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The hydropower sector has made some progress indeed over the last five years or so. The private sector has come forward promising to develop 2,000 MW while the government has projects for 600 MW under construction and another 250 MW has been added recently. “We are certainly not late in identifying the sector’s immense potential but we must make it work now to ensure that we are not behind schedule in the future, Pradhan says on a cautious note. He adds, “This country will collapse if we don’t export hydropower in the near future because we have so much to import for which we need to pay through exports.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">However, the present situation is that Nepal has developed approximately 600 MW of hydropower only. Therefore, the bulk of the economically feasible generation has not been realized yet. Although bestowed with tremendous hydropower resources, only about 40 per cent of Nepal's population has access to electricity. Most of the power plants in Nepal are run-of-river type with energy available in excess of the country's demand during the monsoon season and deficit during the dry season.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Looking at the energy consumption pattern of the world, Nepal has one of the lowest energy consumption levels. An average of 15 gigajoule (GJ) per capita is the minimum that a country can think of. Out of this 15 GJ, most of the energy is spent on cooking and thermal applications. Dr Shrestha analyses the situation thus: Nepal's electricity consumption is probably one of the lowest in the world, hitting our economic activities hard. We are facing the consequences because of low production levels in this country.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The residential needs account for the major share of energy consumption (89.1 per cent), followed by transport (5.2 per cent), industry (3.3 per cent), commercial (1.3 per cent) and then the agricultural sector and others. Due to inadequate numbers of energy intensive industries, the industrial sector holds the third position in Nepal’s total energy consumption.<br />
	<br />
	<br />
	<br />
	</span></div>',
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			'created' => '2011-09-05',
			'modified' => '2012-08-23',
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			'description' => 'Despite immense potentials for electricity generation, Nepalis have to suffer long hours of power-cuts. This affects its industrial output as well, which in turn makes Nepal a less attractive destination for foreign.......',
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	(int) 7 => array(
		'Article' => array(
			'id' => '412',
			'article_category_id' => '40',
			'title' => 'Give Topmost Priority To Hydropower Development In Nepal’s Interest (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong>Er Gyanendra Lal Pradhan</strong>, a hydropower specialist-cum-entrepreneur is an electrical engineer by training. He is currently the Executive Chairman of Hydro Solutions Pvt Ltd. He is also the Executive Member of Independent Power Producers’ Association, Nepal (IPPAN), Federation of Nepalese Chambers of Commerce &amp; Industry (FNCCI) and SAARC Chamber of Commerce &amp; Industry, Nepal. Er Pradhan has initiated a number of successful projects and enterprises of varied scope and sizes in his 25 years of career. He has received the prestigious ‘Manager of The Year 2006’ award from Management Association Of Nepal (MAN) and ‘Excellence Award 2010 in Energy (Hydropower)’&nbsp;from Hydro Nepal-Journal of Water, Energy and Environment. He has also won several other recognitions for his contributions to hydropower and clean energy. He has visited over 100 hydro power plants of 1 KW to 18,600 MW capacity in over 20 countries. In an interview with <i>New Business Age</i>, Er Pradhan shared his views on hydropower sector in Nepal and what can make it a booming success in the country. Excerpts:</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">How do you assess the overall development of hydropower sector in the country in last couple of decades?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The private sector started investing in hydropower after 1990 following the liberal policy adopted by the government. But there was a lack of favourable work environment due to the decade-long insurgency in Nepal. Even for the period between 2000 and 2005, you could hardly brand this sector as lucrative. However, after 2005, well-to-do and influential people including politicians have been investing and maintaining shares in hydropower projects. Today, all political parties have hydropower development as the topmost agenda in their manifestos. Though we are not late in identifying the sector’s immense potential, we must make it work now. The private sector has come forward promising to develop 2,000 MW while the government has projects for 600 MW under construction. Another 250 MW has been added recently. So, we have been making some progress indeed over the last five years or so. But, like I said, it’s about time we gave topmost priority to hydropower development in Nepal’s interest. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Despite having vast water resources, why has Nepal not been able to exploit it to the maximum?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The earth’s surface area is dominated by water at 70.8 per cent but the proportion of clean or fresh water is three per cent only. From that perspective, we are extremely lucky to have 20,000 litres of clean water per person per day in Nepal. However, water mismanagement in our country has led to where we stand today. There is no water in the tap and no water for irrigation and electricity either. You must remember that water can never be regenerated. Projects such as the ones related to irrigation can never be sustainable because they do not have adequate output income. These need to be related to hydropower because the income generated from electricity can pay for such projects. If you look at the projects today, they sustain because revenue from electricity has helped make water available at affordable prices to farmers and the common people. Flood control, irrigation, fishery and electricity should go hand-in-hand wherever possible; there are many projects in Nepal which prove this point. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Have we become over-optimistic due to climate change? What does global warming mean to Nepal? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Yes, the nature provides us clean water through snow glaciers and the glacier melting is helping us provide water throughout the year. If global warming continues at the current level, it will adversely affect several parts of the world. We will have fewer glaciers of course but it will not affect Nepal much. We get rainwater in excess of 225 billion cubic meters so we are getting more rainwater than the water from the glaciers. Therefore, our water level has not receded overall. In fact, global warming has helped us have more clean water as we have been receiving greater rainfall during monsoon. A majority of Nepal’s cities and towns are situated at an elevation. Hence, they don’t fall in the flood-prone zone. We have over 6,300 rivers and rivulets and thousands of hills and valleys. If we could block the water in these valleys, we can conserve the rainwater and it can be a huge asset. Water is like oil (energy) for us, it’s a blessing for the hydropower sector. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">What is your analysis of the debate on power production for external versus internal consumption? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Without any doubt, the first need is that of domestic consumption. The current load-shedding problem may seem a big issue right now but it can definitely be dealt with over the next four years or so. In fact, we will also have surplus with us which we should look at exporting. This country will collapse if we don’t export hydropower in the near future because we have so much to import which we need to compensate with exports. For example, iron and steel is our most exportable item at over Rs 10 billion but the net saving is only 15 per cent as 85 percent money is spent on importing raw materials. On the other hand, if we could export hydropower for the same worth, 85 per cent of the money would stay in Nepal itself. There is huge value addition when it comes to hydropower. But if we can’t use the water today, we will have new water tomorrow and it continues in that manner. We are sending precious foreign currency abroad for importing petroleum because we are not exploiting our water resources.&nbsp;&nbsp; </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Talking about alternative energy, can it be adequate for household needs? Further, do you see it contributing to industrial growth in some way? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">To tell you the truth, solar energy generates only 12 MW in Nepal which can’t end load-shedding. Do you think solar energy can meet our current requirement of 2,500 MW? The solar sector was given subsidy which yielded practically no result. There would be 2,500 MW of sustainable hydropower if hydropower sector was granted the same amount of subsidy. We won’t need any battery and there would be no pollution either. However, I do agree that solar energy must exist for people living in high mountains for the sake of social justice as we cannot take electricity to those areas with the same ease as solar energy. Other alternative energy sources such as wind too cannot support any economic activity, leave alone industrialisation. There is a potential for wind energy in Mustang and Kali Gandaki corridors but why would you generate wind at Rs 10 per unit when you can do the same at Rs 5 per unit from water flowing below these very corridors. Besides, you have to invest heavily to create necessary infrastructure on top of the mountains. Saudi Arabia gets so much of sunlight but it has no solar energy. It doesn’t have to look elsewhere because of its abundant oil resources. Similarly, we have hydropower in Nepal so we must focus on developing it instead of looking at the so-called alternatives that are not cost-effective at all. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">The government has increased 20 per cent on PPA rates but you don’t seem to be satisfied. What is your idea of a good deal?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">I will give you the numbers. Let me tell you that rates cannot be negotiated behind closed doors. Only a few Nepali companies can build projects upward of 25 MW individually because the high degree of technical and financial capacity required for building such projects may not be at the disposal of most companies. More than 95 per cent of the projects being built by Nepali entrepreneurs are below 25 MW capacities. These projects would produce power at only Rs 5.45 per unit for a 30-year average while 25 MW and above projects are built at a lesser cost and can generate power at Rs 7.50 per unit for the same period. Even the projects promoted by Nepal Electricity Authority (NEA) staff have been promised Rs 5.54 per unit. From a distance, it seems that 20 per cent has been increased on existing PPA rates for private sector investors. However, escalation has been brought down to five years from the earlier nine years. So, in effect, the net increase will come to 10 per cent only. After the increase, the rate has barely managed to reach Rs 6 per unit which is a discriminatory practice being pursued by the state. The so-called increase of 20 per cent for private sector investors is an illusion. We are not even asking for a rate of Rs 7.50 per unit. We are confident in our belief that if we are given Rs 6.50 per unit, besides being a rupee cheaper, some more projects may want to invest in this crucial sector.&nbsp;</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Despite all the fuss, private sector investment is not coming forth for hydropower development. Why so?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Well, nobody invests in a business to make losses and hydropower is no exception. The prospects must be commercially viable for any investment to come in. Further, the banks have invested a whopping 70 per cent of the total money involved in hydropower. If they have to additionally invest crores of rupees every year for infeasible projects, they are not going to finance. Therefore, no private sector project is going to invest willingly given the current situation barring a couple of projects who may invest to honour license validity. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">The government has proposed to establish a separate bank for hydropower development. Do you endorse the idea? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">We have given the government a figure of 2,500 MW to end load-shedding. We need an investment of US$ 5 billion for this. So, over the next four-and-a-half years, we will require Rs 350 billion. It is only possible if we use half the amount in the banking system of Nepal which has a total of Rs 700 billion. Given this situation, the state has to bring foreign investment as it is difficult for the private sector to do so. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">It is good to open a bank but do we really need one? It is better to have a fund manager. We have a few failed examples from the past – the state floated Agricultural Development Bank which has failed to increase agricultural production in the country. Today, the farmers take the most expensive loans from this bank at a monstrous 18 per cent. Nepal Industrial Development Corporation (NIDC) promised to boost industrialisation but now all the money has gone down the drain in the industry sector. Going by these examples, what is the logic in opening ‘another bank’? c by getting funds from abroad at 1.75 per cent and give it to commercial banks, both state-owned and private sector, and ask them to invest in certain sectors. For example, they can give it to the banks at 5 per cent and ask them to invest it at 8 per cent. It will solve the problem of interest lending and fulfill fund requirement as well. The state should manage fund and monitor it accordingly instead of opening a bank and turning it into a business proposition. </span></span></div>',
			'published' => true,
			'created' => '2011-09-05',
			'modified' => '2012-08-23',
			'keywords' => '',
			'description' => 'Er Gyanendra Lal Pradhan, a hydropower specialist-cum-entrepreneur is an electrical engineer by training. He is currently the Executive Chairman of Hydro Solutions Pvt Ltd. He is also the.............',
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		'Article' => array(
			'id' => '411',
			'article_category_id' => '40',
			'title' => ''The Accessibility, Impact And Applicability Of Renewable Energy Is Ever  So Growing' (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong>Dr Jagan Nath Shrestha</strong> is a Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University. He is also the President of Nepal Solar Energy Society. In an interview with New Business Age, Dr Shrestha shared his views on the overall energy sector in Nepal and made a case for developing renewable energy in the wake of acute energy crisis plaguing the nation for quite some time now. Excerpts:</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><b>&nbsp;</b></span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How significant a role can renewable energy development play to minimise the effects of the current electricity crisis?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We are having a gala time right now because it’s the rainy season. But once monsoon is over, it will be back to square one — we will experience 14-15 hours of power outage again. As for renewable energy, I don’t see a problem from such energy if we need energy only for lighting purpose. Solar electricity costs far less now compared to even three years ago. Apart from that, we have had innovations in lighting over the decades that have helped us reduce energy consumption. These have helped in household energy consumption.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, the major impact of the current energy crisis is on industry, which needs a lot of energy. We need 1,100 gigawatt hours of energy for the industrial sector which is about 40 per cent of the total electricity produced by Nepal Electricity Authority (NEA). I do see a couple of options to save our industries though. NEA has close to 1.77 million subscribers of which 1.2 million are households that consume very little energy as in these households it is mostly used for lighting purpose only. If we could equip these households with 100W solar panels, we can easily save 500 gigawatt hours which can be diverted to industry. For this, we need appropriate policies. In this manner, we can save our industries from a complete collapse.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">If all the investment in setting up solar power system in the households is to come from the government, there will be problems. It will probably take billions of rupees to provide 100W solar panels to these 1.2 million households. But if these households are made ready to share some of the investment, the problem can be reduced to a great extent. The government, on its part, can help by providing tax relief and subsidy of some kind. This will definitely encourage many people to opt for solar energy. On the other hand, NEA won’t have to lose because the industries are there to make up for NEA’s loss of customers.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">But, let me caution that even though it looks very simple, its management may be complex. This calls for a blend of engineering technology and management art. Technologists or managers cannot produce results working separately, they should complement each other.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you see the priority given in Nepal to research and development (R&amp;D) in the energy sector to tackle existing energy shortage?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A lot of R&amp;D in the energy sector is being done in advanced countries on a continued basis. I cannot say how practical it is for a developing country like Nepal to do the same. What Nepal could probably do is to identify suitable energy resources for different areas and decentralise energy utilisation in the country. It is definitely a challenge for our universities and research institutions to conduct research for actualised energy applications. The outcome of this research should benefit the communities across the country and create employment. At the same time, such a study should look at protecting the environment. The energy must be efficiently used in a productive way.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What are the major impediments to the development of energy sector in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">There are two sides of the coin. We either have too many energy experts who know all about it but can’t agree with each other or we don’t know anything about energy development at all. I personally believe there are people in Nepal who have a lot of knowledge and ideas about the energy sector. However, they have not been able to work independently from the government or other agents. And, the characteristic of this group is disagreement among themselves. My request to these experts is: first ensure a position where we can generate about 3,000 MW for fulfilling the basic need of the households and of the industries. Once this objective is met, there is no harm on agreeing and disagreeing on numerous other counts. But till that time, all the experts must work out a consensus and stick to that. A disagreement among experts puts the government in a bind.&nbsp;</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you view the debate on whether to produce power for export or for consumption within the country?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Of course, our focus should be to first meet domestic needs,. But, if we do manage to produce surplus energy, we should definitely export. However, in today’s context, how can we export when we don’t have enough for ourselves? Take Bhutan’s example: it invites foreign countries to invest in its hydropower development and puts some conditions on such investments. It wants them to produce as much energy as possible but allows them to export only when the country’s internal needs are fully met. On the other hand, we are talking about exporting power while the power outage hours are ever increasing. Nepal has a problem with capital. It takes a lot of money to develop hydropower but Nepal does not have that money. An investor will definitely want to see how he can recover his investment. My opinion is that Nepal should be self-sufficient in power first. While not wanting to export is an extreme view, we also cannot talk about exporting everything that we produce.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How is the possibility of alternative energy sources meeting the industrial needs of Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The perception that renewable energy cannot help industries is wrong. It all depends on the size and location of an industry. A medium scale industry may require anything between 500 KW and 10 MW. If such an industrial unit is situated near a micro or mini hydro plant, its energy needs may be fulfilled. Similar may be the case if the industry is located near a windy place or where there is plenty of sunshine. We can ascertain the energy feasibility for an industry after taking its size, nature and location into account. Talking about solar electricity, an average of 4-5 kilowatt hour per square metre per day can be generated in Nepal. During daytime, we can use solar energy directly. It can also be stored and used in the night or when there is no sunshine.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Which one will be the most economical source of energy for a particular industry?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">After studying the energy needs of an industry, the most economical, beneficial and rewarding renewable energy option can be determined and worked upon. We must give priority to hydropower if it can be generated in a sustainable manner. Besides being economically feasible, hydropower can supply energy reliably when the concentrated power requirement is high. Comparatively, renewable energy may not be available when needed. Though, of course, it varies from case to case. There are many industries in the world which run completely on renewable energy. It is not only about solar or wind energy; it could be derived from biomass, agricultural and municipal waste also. The advanced countries rely on renewable energy because they care about environmental degradation, global warming, pollution etc. They focus on economic development, energy security and environment protection. Solar energy can be adequate for household needs, especially for lighting purposes. I know of households in Nepal who spend as much as Rs 800 per month on candles against Rs 80 for electricity. This is where micro-financing can come in and help such families to install solar panels worth Rs 3-4,000. The accessibility, impact and applicability of renewable energy are ever so growing because energy consumption of electronic devices has come down to from about 1/4th to 1/100th. Renewable energy has become a feasible option in urban areas as well. I personally feel that people have to become conscious and inculcate a habit of conserving energy. Every kilowatt hour of energy saved is equivalent to one kilowatt hour generated. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How important is bio-gas production given the amount of organic garbage generated in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.1pt;">Bio-gas potential is immense. More than 250,000 bio-gas plants have been established so far mostly in remote areas where there is no electricity. A six cubic-meter bio-gas plant can generate thermal energy equivalent to one standard LPG cylinder in about 24 days. For the sake of drawing a comparison, you can say that bio-gas is providing 250,000 LPG cylinders worth of energy in the country. This is certainly an achievement and we can take&nbsp;this even further. Cow dung was used for operating bio-gas plants earlier. But a lot of experimentation has led to a state where anything bio-degradable is equivalent to cow dung. Therefore, we can certainly increase the number of bio-gas plants in Nepal. More than 70 per cent of the waste coming out of big municipalities is bio-degradable. We must process this waste and generate energy rather than sending it to landfill areas. The problem is that the waste does not get collected in a segregated manner. We must find ways to sort bio-degradable waste right at the source. Keeping different garbage containers at the source can save segregation cost as the users will throw the ‘right waste’ in a designated container. Sewage treatment is a serious practice in most cities of the advanced countries. The water is drained out in the river after removing bio-degradable waste from it and purifying the water. Waste management is absolutely crucial in the present context. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What’s the current state on private sector investment in renewable energy? What can be done to make this more adequate and on a bigger scale?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Private sector invests in a sector where it sees a profit. Its investment in renewable energy will happen once there is a healthy competition in the energy sector. The government doles out billions of rupees to buy petroleum products when prices get higher whereas the subsidy to micro-levl hydropower, solar and wind energy projects, for example, pales in comparison. Given this scenario, private sector investment in renewable energy is a distant dream. The government is biased towards petroleum products instead of letting them compete with other energy sectors. There should be a level playing field. The subsidy given to proven renewable energy technology is inadequate and impacts adversely the opportunity for private sector investment. The government should proactively employ proven technologies instead of giving subsidies. For example, the price of electricity sold by NEA has not increased in the last decade or so. Renewable energy sources cannot provide power at the NEA’s low rates , which are highly subsidised. Therefore, it’s no surprise that the private sector does not want to invest in renewable energy. They won’t get the desired returns. We need to correct the situation and ensure a level playing field to lure the private sector to invest.</span></div>',
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			'created' => '2011-09-05',
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			'description' => 'Dr Jagan Nath Shrestha is a Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University. He is also the President of Nepal Solar Energy............',
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	(int) 9 => array(
		'Article' => array(
			'id' => '410',
			'article_category_id' => '34',
			'title' => 'Bankers Call MoF, NRB Irresponsible (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 15pt;">B</span><span style="font-size: 9.5pt;">ankers have criticised Ministry of Finance (MoF) and Nepal Rastra Bank (NRB) for not fulfilling their duties even when the financial sector is passing through a crisis. They said they are disappointed with the functioning of MoF and NRB. Ashoke Rana President of Nepal Bankers Association complained, “NRB has always ignored our suggestions and our recommendations are never implemented.”</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Speaking at the interaction programme organised by Society of Economic Journalists - Nepal, Rana said that though suggestions are given to the Minister of Finance, nothing is done about them. He also alleged that NRB’s role has been biased. He claimed that NRB itself is in problem and lacks corporate governance. Rana also criticised NRB for not being able to regulate the banking and financial sector properly which led to the banking sector turning sick.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">He said that the steps taken to solve the problem of liquidity are incomplete and short-term. He claimed that recent steps taken by NRB to ease the liquidity crisis have only shifted the liquidity in the system but new liquidity has not been added. He also declared that inter-bank lending cannot be provided to sick development banks and finance companies.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Jhapat Bahadur Vohra, the then President of the Nepal Development Bankers’ Association, advised the government to bring special programme to address the liquidity issue through budget and monitory policy. He alleged that the faulty policy of the government shifted the capital to the informal sector. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Similarly Rajendra Man Shakya, President of Nepal Finance Companies’ Association, charged NRB with working against the institutions rather than in their favour. He alleged that NRB has intentionally put pressure on small companies. “If the NRB does not support these companies with a positive intention, there is no alternative but to close them down and submit the keys to the NRB,” he threatened.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Credit Rating Regulation Passed</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">T</span><span style="font-size: 9.5pt;">he Ministry of Finance has passed the Credit Rating Regulations. The draft prepared and sent by Securities Board of Nepal (SEBON) was approved by the ministry on June 24 with some amendments. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">After implementation of the regulation, the companies dealing with capital market instruments are obliged to be credit-rated.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">However, such agencies must have investment from a foreign company with at least five years of credit rating experience in international market and a minimum of Rs 20 million paid-up capital. Foreign partners can hold 25 to 75 per cent stake. Such agencies will rate companies issuing IPO, rights share, preference shares, debentures and other securities.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">FNCCI in Favour of Self Declaration of Wealth</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt;">F</span>ederation of Nepalese Chambers of Commerce and Industries (FNCCI) has officially proposed the government to bring in a scheme for voluntary declaration of wealth for the last time. FNCCI proposed such a scheme to the Ministry of Finance before implementing the laws on money laundering.</div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.25pt;">FNCCI proposed it while giving its views and suggestions for the budget. Similarly, FNCCI has also demanded to scrap the provision to produce the source of income while dealing with transations worth over Rs 1 million and buying and selling of properties above Rs 3 million.</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Ministry officials to collect loan repayment in Malaysia</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt;">A</span> team from the Ministry of Labour and Transport Management will go to Malaysia to collect loans provided to Nepali workers. These loans were provided in 2004 under Employment Promotion Programme and most of the borrowers are currently working in Malaysia. According to a source at the ministry, the team will visit companies where borrowers are currently working to collect the loan repayment. A six-member team will leave for Malaysia on June 27.</div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	The government had dispatched Rs 45 million as loan to indigenous, ethnic, Dalit, neglected, downtrodden and conflict victim communities. According to the source, after adding the interests, the loan amount has crossed Rs 60 million.&nbsp;</div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-align: center; text-indent: 0in;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">NDEX Begins &nbsp;Spot Contract</span></span></div>
<p style="text-align: justify;">
	<span style="font-size: 10pt; line-height: 115%;">N</span><span style="font-size: 11pt; line-height: 115%;">epal Derivatives Exchange (NDEX) has begun spot contract of gold and silver from June 27. NDEX has been working for two years on the future exchange of metals, energy and agriculture products. According to Santosh Pradhan, Chairman and Managing Director of NDEX, spot contract was commenced to diversify the investment of investors<span style="letter-spacing: -0.25pt;">.<br />
	</span></span></p>',
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			'description' => 'Bankers have criticised Ministry of Finance (MoF) and Nepal Rastra Bank (NRB) for not fulfilling their duties even when the financial sector is passing through a crisis. They said......',
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	(int) 10 => array(
		'Article' => array(
			'id' => '409',
			'article_category_id' => '34',
			'title' => 'Siddhartha’s Branchless Banking At Dailekh (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt;">S</span>iddhartha Bank Limited has kicked off its branchless ‘Easy’ banking service from Dailekh. The bank launched the service on June 15 by issuing a smart card with which banking transactions can be made. Chief District Officer of Dailekh, Bashudev Adhikari, inaugurated the new service.</div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.25pt;">The need for this service arose as the bank has to manage cash distribution under the World Food Programme’s Cash for Work. The bank said that the machine provided for the branchless banking at Dailekh identifies its customers by their fingerprints and photos, making the service secure and effective. With this service, people can access services like deposit, loan, remittance, money transfer, among others in the village itself. The bank also said that the social security allowance provided by the government can be distributed to people with this service.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">PLO Doubling Its Production</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt; letter-spacing: -0.05pt;">P</span><span style="letter-spacing: -0.05pt;">urbanchal Lube Oil Pvt Ltd (PLO) is doubling its production from the coming fiscal year. Bhola Dulal, Managing Director of the company, said that PLO is doubling its capacity as per the policy to increase production every year. He added, “We are also increasing production to make Nepal independent in lubricants and grease.”</span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The company produces&nbsp;one million litre of lubricants and 550,000 kilograms of grease. According to Dulal, PLO plans to produce three million kilograms of grease and lubricants from the next year. PLO is also preparing to add infrastructure to increase the production. Established with Rs 11 million investment in 2001, the company’s share capital has increased to Rs 150 million. The company claims that lubricants produced by the company under brand names PLO and Star covers 26 per cent of the market share. The company is producing over 200 types of products by importing raw materials mainly from Dubai, Quatar, Australia, Russia, Korea, India and Iran.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">SEBON Revamp Needs More Staff</span></span></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">Securities Board of Nepal (SEBON) has brought some changes to its organisational structure. Dr Surbir Paudyal, Chairman of SEBON, said that amendments were brought in to enhance its capacity. He also informed that amendments were made based on a report prepared by Securities Board of India (SEBI).</span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">In the old structure, there were seven departments and 13 sections while the new structure will have six departments and 23 sections. Currently, there are 38 employees while the new structure will have double the number of staff. SEBON’s announcement of a revamp comes at a time when there is widespread criticism of its effectiveness. SEBON has been given the rights to regulate Mutual Funds and Credit Rating Agencies, and while Commodities market is also likely to fall under its jurisdiction. Paudyal said that it would take some time for new the structure to come into effect.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Food Production Rises By 11%</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt; letter-spacing: -0.25pt;">F</span><span style="letter-spacing: -0.25pt;">ood production has increased this year by 11 per cent compared to the previous year. Dr Hari Dahal, Spokesperson at the Ministry of Agriculture and Cooperatives, said that with the growth in production, Nepal will have a food surplus of 110,000 thousand metric tonnes.Dahal said that last year the country witnessed a deficit of 330,000 metric tonnes of food grain. “In the current fiscal year, 8.61 million metric tonnes of food has been produced which is 11 per cent higher than the last year,” he revealed. In the previous year, 43 districts faced food-shortage while this year the number has come down to 38.</span></div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	According to Dahal, favourable climate, increased subsidy in chemical fertilizers, use of improved seeds and technology resulted in the increased production. Out of the total production, 367,000 metric tonnes will be used to produce feeds for livestock. There is a demand for 5.4 million metric tonnes of food grains annually.&nbsp;</div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">NTA Proposes To Use RTDF</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="">N</span><span style="font-size: 9.5pt;">epal Telecom Authority (NTA) has sought permission from the Ministry of Finance to use the funds collected in Rural Telecommunication Development Fund (RTDF). NTA Spokesperson Kailash Neupane said that the authority wants to use the amount collected for the development of telecommunication infrastructures. Rs 3.25 billion has been collected in the fund so far.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Neupane revealed, “With the amount, NTA is planning to issue tender to lay optical fibre in all 75 districts. As soon as the ministry approves the proposal, we will issue the tenders.” According to the telecommunication policy, the amount in fund can be used by NTA to finance infrastructure development. Telecommunication operators contribute two per cent of their income to the fund. Purushottam Khanal, Chief of Rural Telecommunication Department of NTA, said, “We are planning to extend information highway all over the country with the accumulated fund.”</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">NTA has planned to complete the development project in two phases for east and western parts of the country. Khanal revealed that NTA has earmarked Rs 2.59 billion for the eastern region while Rs 1.90 billion for the western region. As of now, 35 districts are linked by the optical fibre. NTA started collecting two per cent from the service providers since its establishment in 1994-95. Now, around Rs 1 billion is collected annually in the fund.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">20 Places Shortlisted for Mid-Hill Cities </span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">T</span><span style="font-size: 9.5pt;">he government has shortlisted 20 places along the proposed mid-hill highway to select ten of them as new cities. The selection was made by Ministry of Physical Planning and Construction ont he recommendation of&nbsp;Prof Dr Bhim Subedi, the consultant associated with city identification project. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Among the 20 shortlisted places three are from Accham including Rakam, Safebagar and Binayak. Similalry, three places of Rukum – Chaurjahari, Rukumkot and Musikot - are in the short list. Among the other places shortlisted are Fidim, Basantapur, Dumre, Ghurmi, Khurkot, Baireni-Galchhi, Diktel and Patan (Baitadi). Similarly, Burtibang, Dipayal,&nbsp;Dulegauda, Jarayotar (Bhojpur), Kurintar (Chitwan) and Mangaltar (Kavre) are likely to be chosen to be developed as cities.&nbsp; <br />
	</span></div>
<p style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Though there are more than one place included in the short list, Prof. Dr. Subedi said that his recommendation is to select at least two places from each development region to ensure proper regional balance.</span></p>',
			'published' => true,
			'created' => '2011-09-05',
			'modified' => '0000-00-00',
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			'description' => 'Siddhartha Bank Limited has kicked off its branchless ‘Easy’ banking service from Dailekh. The bank launched the service on June 15 by issuing a smart card with which banking.....',
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	(int) 11 => array(
		'Article' => array(
			'id' => '408',
			'article_category_id' => '34',
			'title' => 'Birgunj SEZ Construction (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">T</span><span style="font-size: 9.5pt;">he construction work in the special economic zone (SEZ) of Birgunj is nearing completion. However, industrialists complain that the law needed for the operation of the SEZ which is hoped to boost exports, is still not enacted.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The SEZ is being constructed in an 832 bigha land that was once the premises of Birgunj Sugar Mills.&nbsp;The idea to establish a SEZ at this location was finalised seven years ago with an objective to increase export competitiveness of the country. The government began building the SEZ as per the Industrial Policy that promises various facilities to the exporters. However, the industrialists are arguing that the facilities should be provided also to the industrial units that produce goods for consumption within the country. Jagdish Agrawal, Chairman of Nimbus group of companies said the government policy to protect only the export-oriented industries is wrong. He said that in a country like Nepal where the internal production is not enough to meet the internal demand, there is no point in providing incentives only to production meant for export. He also suggested setting up economic zones specialised in certain products. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Om Prakash Sikaria, Former President of Birgunj Chamber of Commerce and Industry however, expressed hope that the SEZ would help in the development of export-oriented industries in and around Birgunj. However, he complained at the delay in introducing a separate law required for the operation of the SEZ.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Both Agrawal and Sikaria pointed out that the Birgunj SEZ will have problems as it is located away from the highway and the dry port. The Birgunj SEZ will have five blocks. Among them, block A will be the biggest with an area of 343 bigha. Block B will have 123 bigha while the area of block C will be 49 bigha. Similalry, block D will have 178 bigha and block E will be of 133 bigha.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169); letter-spacing: -0.6pt;">Maoists not for Majority Foreign Stake in Nepali Banks</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt; letter-spacing: -0.1pt;">U</span><span style="letter-spacing: -0.1pt;">CPN –Maoist Constituent Assembly (CA) members do not want branches of foreign banks in Nepal. They have started political lobbying saying the foreign banks established in Nepal will leave negative effects on the economy.</span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.15pt;">They have taken a stand not to allow foreign banks to own more than 49 per cent stakes in banks in Nepal. They want it to be included in the Banks and Financial Institution Act (BAFIA) which is in the process of amendment. “This is the issue of nationality,” said Narayan Prasad Sharma, a Maoist CA member and coordinator of BAFIA sub-committee. “We are determined to make provisions that only Nepali citizens and entities can hold a majority stake in Nepali banks,” he added. “It will be a threat to the national economy if 51 per cent stake is not held by the Nepalis,” he clarified. Another Maoist CA member Hari Roka said that the provision about the ownership of a foreign bank branch should not exceed 49 per cent and it should be mentioned in the law itself. However, the Maoist stand is against the World Trade Organisation (WTO) provisions. While being the member of WTO in 2004, Nepal had signed an agreement to allow foreign investments into the country from 2010.</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Panchakanya Operates On Full Capacity</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 13pt;">P</span><span style="font-size: 9.5pt;">anchakanya Steels, a Panchakanya Group company, has begun operating to its full capacity. Biswojay Pudasaini, Sales Manager of the company, said that the company has invested Rs 100 million to increase the output.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">With the upgrade in production, the company has begun producing 80 thousand metric tonnes of steel rods annually. Previously, only 60 tonnes of steel rods was produced in a year. Pudasaini claimed that with the increase in production, market share will also increase to 25 per cent. He said that government and foreign projects largely use Panchakanya Steels products.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Panchakanya began producing to its full capacity from the second week of June. According to Pudasaini, the company installed the latest technology after replacing the old one. However, he said that the product is yet to be supplied to the market. The company is producing rods from its plant at Bhairahawa.</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169); letter-spacing: -0.6pt;">Shiva Ram wins Surya Nepal Central Open</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">S</span><span style="font-size: 9.5pt;">hiva Ram Shrestha registered an eight-stroke victory over Sanjay Lama to take home the Surya Nepal Central Open title at the Gokarna Golf Club. He carded four-under 68 on the final day for a total of 10-under 278 to list the 11thcareer title, highest by a pro in the Nepali tour. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Similarly, Lama stood on second position with a total of two-under 286 after the final round score of five-under 67, while Mani Rai played a round of six-over 78 to score the third position at&nbsp;one-under 287. Samundra Giri and Ramesh Nagarkoti shared the fourth position at 289.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">In amateur category, Tashi Tsering claimed the trophy with a total score of 10-over 298 while Bikash Bogati came second at 299.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Out of the total cash purse of Rs 425,000 of the third event under the Surya Nepal Golf Tour 2011-12, Shiva Ram received Rs 90 thousand, while Sanjay bagged Rs 57 thousand. Similarly, third-placed Mani pocketed Rs 45 thousand. Dorji Sherpa, Vice-President of Gokarna Forest Resort and Ghana Shyam Thapa, former President of Nepal PGA handed over the prizes to the winners.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Deposit Insurance Mandatory for Commercial Banks Too</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 10pt;">N</span>epal Rastra Bank (NRB) has started sending letters to commercial banks directing them to insure deposits up to Rs 200 thousand. “We have directed commercial banks to ensure deposit insurance in next fiscal year,” Bhaskar Mani Gyawali, Spokesperson of NRB, said.</div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	The central bank has said that deposit insurance has been made mandatory to safeguard the deposits of common depositors at a time when financial institutions are considered fragile. Gyawali said that deposit insurance is made extensive as a part of winning back confidence of depositors. Deposit insurance programme began this year starting from development banks, finance companies and microfinance banks. Till date, deposits of Rs 529.6 million of 1.4 million depositors in 138 financial institutions have been insured.&nbsp;</div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Eight Polytechnics in the Offing</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 13pt;">E</span><span style="font-size: 9.5pt;">ight new polytechnic institutes will be set up in different parts of the country with financial assistance from the Nepal government and some friendly countries. Total investments into all these institutions will add up to Rs 3.32 billion. These institutes will be established in Makwanpur, Rupandehi, Rautahat, Sarlahi, Kailali, Dhanusha, Chitwan and Kathmandu. Bishnu Koirala, Director of the Council for Technical Education and Vocational Training (CTEVT), said these establishments will be financed by national and foreign investments.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">With a financial assistance of Rs 450 million from the Indian government, a polytechnic will be set in&nbsp;Hetauda, Makwanpur, will be established with the support of Indian government. According to Koirala, Another polytechnic will be set with a Korean assistance of Rs 520 million in Butwol, Rupandehi. Polytechnic institutes in Janakpur, Chitwan, Kathmandu and Kailali will be set up with a government assistance of Rs 500 million for each of the institutes.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<p style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Similarly, nursing institutes will be set up in Gaur, Rautahat, Malangawa and Sarlahi with investments of Rs 150 million each by the Nepal Government. According to Koirala all these institutes will be ready in four years. </span></p>',
			'published' => true,
			'created' => '2011-09-05',
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			'keywords' => '',
			'description' => 'The construction work in the special economic zone (SEZ) of Birgunj is nearing completion. However, industrialists complain that the law needed for the operation of the SEZ which is....',
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	(int) 12 => array(
		'Article' => array(
			'id' => '407',
			'article_category_id' => '34',
			'title' => 'NEA Deceived On PPA Rate (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="">T</span><span style="font-size: 9.5pt;">he private sector has accused Nepal Electricity Authority (NEA) of deceiving electricity producers on the rate of Power Purchase Agreement (PPA). NEA has increased PPA rate by 20 per cent on projects up to 25 megawatts.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Previously, electricity producers could raise price up to nine times in PPA rate but now they can increase up to only five times. With this, the PPA increase rate said to be 20 per cent will actually be 10 per cent, said Gyanendra Lal Pradhan, a power producer, The government promised to increase PPA by 20 per cent in projects that will be completed within four years but NEA did not follow it.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The private sector is saying that with the latest increase, internal return rate will be lower than 12 per cent. Power producers are saying that nobody will be interested to borrow from banks at 16 per cent and invest for that rate of return. Independent Power Producers Association-Nepal (IPPAN) says that for 30 years, average PPA rate should be fixed at minimum Rs 6 per unit. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Dr Subarna Das Shrestha President of IPPAN said that due to high interest rate, ongoing projects are also on the verge of being scrapped.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 24pt; color: rgb(0, 92, 169);">Bhatbhateni Supermarket in Koteshwore</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14pt;">B</span>hatbhateni Supermarket and Departmental Store has opened its new outlet at Koteshwor from June 11. During the inauguration, Min Bahadur Gurung, Managing Director of Bhatbhateni, said that the new shopping centre is equipped with customer care desk, elevator and escalator for physically challenged people along with other modern amnesties.</div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	He said that 200 people are getting employment in the supermarket out of which 90 per cent are women. The five–storey supermarket has been built at an investment of Rs 500 million. Gurung revealed that within this fiscal year, new supermarkets will be established at Jawalakhel and Chuchepati. He said its chain outlet in Pokhara is under construction. He also revealed that supermarkets at Bhatbhateni and Maharajgunj register an annual turnover of Rs 2 billion.<br />
	 </div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 22pt; color: rgb(0, 92, 169);">Electricity Development Corp within 15 Days<br />
	<br />
	</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt; letter-spacing: -0.25pt;">T</span><span style="letter-spacing: -0.25pt;">he government has announced to set up Electricity Development Corporation within 15 days from June 8. Gokarna Bista, Minister of Energy, said, I will show by establishing the corporation within 15 days. He added, Committee formed for the inception of the corporation is working to complete the task within seven days.</span></div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.25pt;">Finance Minister Bharat Mohan Adhikari said that legal consultations are going on for setting up of the corporation. He also revealed that the corporation will not be controlled by the government but will be an independent unit. World Bank, Asian Development Bank, China Exim Bank and other international entities will be invited to invest in the company. Bista said that the seed capital of the corporation will be around Rs 7 to 15 billion. The government had proposed the establishment of Electricity Development Corporation after declaring power emergency in the country some months ago.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);"><br />
	Siddhartha and NMB to Operate Mutual Fund<br />
	<br />
	</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt;">S</span>iddhartha Bank Limited has become the first company to file an application to the Securities Board of Nepal to work as a mutual fund. One year after the regulation came into force, first application for licence to run mutual fund has been registered.</div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.25pt;">Siddhartha Bank has begun the process of establishing a mutual fund under the name Siddhartha Mutual Fund. The bank is planning to establish fund under Siddhartha Asset Management, bank's sister organisation, according to Bhola Dhungana, Office Secretary of the bank. The fund will be established with Rs 100 million paid-up capital. The company has said it will begin operation as soon as it gets approval from the SEBON. Similarly, NMB Bank has also registered an application on SEBON to operate its NMB Mutual Fund. NMB has prepared necessary requirements for operating the mutual fund. The fund will be managed and operated by sister organisation of the company, NMB Capital Limited.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 24pt; color: rgb(0, 92, 169);"><br />
	Interbank Lending For Six Months</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt; letter-spacing: -0.25pt;">B</span><span style="letter-spacing: -0.25pt;">anks and Finance Companies can issue interbank loans for up to six months. Nepal Rastra Bank (NRB) has made a special provision for interbank loans with effect from June 27. Bhaskar Mani Gyawali, Spokesperson of NRB, said, To lower the pressure of liquidity, this special provision is made.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	Now, commercial banks, development banks and finance companies can issue loans to each other against the acceptable collateral. According to Gyawali, such lending will be for six months on the maximum.&nbsp;</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20pt; color: rgb(0, 92, 169);"><br />
	Progress in Amending Securities Transaction Act<br />
	<br />
	</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt;">T</span>he Securities Board of Nepal (SEBON) has presented a proposal to the Ministry of Finance (MoF) to amend the Securities Related Act 2007. Paristha Paudyal, Director at at the Board's Regulation Department said, the amendment is to accommodate a provision to authorise the Board to regulate the commodities exchanges as well.</div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<p style="text-align: justify;">
	<span style="font-size: 11pt; line-height: 115%;">In this year's budget, the government had announced to arrange for regulation of the commodities exchanges. Accordingly, a committee was formed with representatives from SEBON, MoF and commodities exchanges. The proposed draft amendment is based on the recommendation of the committee, said Paudyal. Currently, there are five exchange companies in operation while five more are trying to acquire license. </span></p>',
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			'id' => '406',
			'article_category_id' => '34',
			'title' => 'Nimbus Trains 2,000 Poultry Farmers(july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	Nimbus has conducted around 34 free trainings this year to 2,000 poultry farmers in different parts of Nepal. It has been conducting these trainings on a monthly basis and has covered more than 50 districts of the country so far. The poultry farmers were trained on poultry farm management, bio security at small farms, commonly encountered poultry diseases, summer and winter management, summer stress, vaccination schedule etc.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	Nimbus has its own training cell which is headed by a veterinarian. It also has a mobile training center to train poultry and livestock farmers. It also conducts trainings for cattle farmers of Chitwan, Dhading and Tanahun in association with Practical Action.</div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-align: justify;">
	 </div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 22pt; color: rgb(0, 92, 169);">Sunrise to Invite&nbsp; Joint Venture</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 9pt;">S</span>unrise Bank Limited has decided to partner with an&nbsp;international bank. Moti Lal Dugar, Chairman of the Bank, said that the bank is talking with a well-known international bank for partnership. Dugar said that the partnership will be finalised soon. He opined it is better to invite foreign invest rather than merge with a national bank. So, the company is bringing in a strategic partner. He also revealed that the bank is soon launching international visa credit card. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.3pt;">&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-align: justify;">
	 </div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20pt; color: rgb(0, 92, 169);">Hyundai’s new brand Motto</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Hyundai Motor Company, the world’s fastest-growing automotive company by brand, officially announced its new brand direction and statement at the 2011 North American International Auto Show in Detroit. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The new brand statement “New Thinking. New Possibilities.” encompasses Hyundai’s new brand concept, “Modern Premium”, which aims to provide customers with emotional value and experiences beyond expectations, says the company. “It’s bigger, smarter and driven by the desire to share stylish, high quality and efficient vehicles with everyone” it says and adds: “New Thinking means challenging convention and pushing boundaries. And New Possibilities means coming up with more forward-thinking ideas and solutions. Hyundai’s new way of thinking is to share premium value with more people and make new possibilities for people and planet by constantly generating new ideas. It gives an opportunity to take a look at the new vision for the future of Hyundai.”</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Today, customers do not believe that expensive cars with unnecessary technology are premium. They no longer want to simply show off their status. Instead, they want their core needs fulfilled at an accessible price and with a car that exceeds their expectations; a car that reflects their values and the times in which they live. “Hyundai is not just a company that makes cars. Hyundai is a company that creates new possibilities. Our goal is not to be the biggest car company. Our goal is to be the most loved automotive company on the planet, and to be a trusted lifetime partner of our owners,” said Vice Chairman Chung, Hyundai Motor Company.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">In the most basic sense, a car is just a way to get from point A to B. But in reality, it is a place for much more - first dates, bonding time with the kids, quiet time alone. It’s a great place to store your gear, enjoy great music, spend a quick moment studying before an exam, or even take a nap or have a meal. “Hyundai’s goal is to create new values and a new culture that will upgrade the in-vehicle experience. Hyundai makes cars to enhance quality of people’s life’, says the company. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Nirakar Shrestha, MD of Laxmi InterContinental says: “With the global introduction of Hyundai Motor Company’s new brand statement “New Thinking. New Possibilities.”, we here at Laxmi InterContinental are pleased to implement the overall brand philosophy in Nepal. The new thinking of HMC relates to the new benefits that it will provide for its customers enjoyment. It seeks to provide additional values sought by society today (enabling more people to enjoy premium values at a fair price). HMC refers these new values as New Premium, Hyundai Premium, or Modern Premium. And Laxmi InterContinental is committed to deliver truly Hyundai Premium along with other services to its valued customers.”</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 22pt; color: rgb(0, 92, 169);">HYUNDAI Premiums in Nepal</span></div>
<div style="margin-bottom: 11.35pt; text-align: justify;">
	Laxmi InterContinental P. Ltd.; sole distributor of Hyundai for Nepal, revealed the new Sonata and Tucson recently.</div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 13.5pt;">Tucson</span></div>
<div style="margin-bottom: 11.35pt; text-align: justify;">
	First impression counts for a lot. Set eyes on the new Hyundai Tucson and we bet you’ll find your second and third glances are just as rewarding. Synthesis of flawless, cutting edge design, embodying style in every curve, sporty and powerful, yet, refined and relaxed. And when it comes to safety and security, the new Tucson is all equipped that gives you all the assurance you need and even beyond your expectation.</div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 13.5pt;">Sonata</span></div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.05pt;">Within seconds of getting acquainted with a Sonata, you will begin to wonder if it’s still today. The breath taking exterior design with rigid surface and structure that creates impression of constant, graceful motion. Inside, you will be surrounded by features capable of doing things that will transform your expectation of what a car can do. Indeed, everything about the Sonata - its sharp looks, next generation technology, and uncommon luxury and style - speaks uncannily of tomorrow.</span></div>',
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			'title' => 'Feedback July 2011',
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	<span style="font-size:12px;"><span style="color: black;"><br />
	<strong>Reality’s Time Has Not Come Yet</strong> <br />
	<br />
	T</span><span style="color: black;">here is a certainly a mismatch between the housing options available and the demand for them in the Kathmandu valley and elsewhere in the country. By any standards, there are more people looking to own a house than the number of houses ready and being built for the prospective customers. But the real problem is high cost of the housing units and poor financing options available. As everybody is talking today, the banks and financial institutions have lent so much to the realty sector that the very existence of the banks and financial institutions has come under threat.<br />
	<br />
	At one of time, it was believed that some banks have exposure to the realty sector to the extent of 85 per cent. As experts will tell, recovering money from the realty sector is time-consuming and depends on many factors, especially financial and political stability in the country. Given the fragile economy and the informal nature of banking and finance in the country due to fluid political situation, it is hard to find buyers for apartments costing upwards of Rs 5 million. Owning an apartment is traditionally not the first choice of the people; they would prefer buying an independent unit. That's a fact.<br />
	<br />
	In line with trends outside, Nepal too has a number of realty companies ready with projects but most of them do not seem based on firm fundamentals.<br />
	<br />
	For example, the entire range of suburb within the Kathmandu valley in the three districts of Kathmandu, Bhaktapur and Lalitpur, there are any number of residential area being developed out of agricultural lands, by demolishing hills and moulds into plain land and by creating plots for independent housing. The cost to develop a property for a modern residential project is exorbitant and the companies are not finding enough buyers at the astronomical rates at which these plots are on sale. These plots were developed with the money of the banks and financial institutes but they now lie disused as there are fewer takers for them in view of a retarding economy. </span></span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div>
	<span style="font-size:12px;"><span style="line-height: 115%; color: black;">The property business in the country can take off only when the economy shows a constant growth over a period of 5 to 10 years at least. Expecting exciting moments in the realty business at this time is tantamount to wrong calculations.<br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><b>- Sanjay Neupane</b></span></div>
<div>
	<span style="font-size:12px;"><b><span style="line-height: 115%;">Bhaktapur</span></b></span></div>
<div>
	<span style="font-size:12px;"><b>&nbsp;<br />
	</b></span></div>
<div>
	<span style="font-size:12px;"><b>&nbsp;</b></span></div>
<hr />
<div style="margin-bottom: 0.0001pt; vertical-align: middle;">
	<strong><span style="font-size:12px;"><br />
	Kudos to &nbsp;Smart Telecom<br />
	<br />
	</span></strong></div>
<div style="text-indent: 0in;">
	<span style="font-size:12px;">The interview with Subhas Bajracharya, CEO, Smart Telecom Pvt Ltd, in June 2011 issue of New Business Age was quite informative and in-depth. The fact that Smart Telecom has already made its services available in 40 districts in the country is worth praising. It is not easy to create telecom infrastructure in the rural parts of our country because of difficult topography and poor road infrastructure. Smart Telecom has really shown commitment and a sense of purpose but by all counts its formidable presence in the rural telecom sector has not been complemented by the government. Telecom policy in the country is all about earning more revenues without any incentive for any worthwhile progress made by the telecom companies. Bajracharya should take heart and know that the investments that his company has made in terms of capital and commitment will win him the market share as well not only in existing markets but also in the new markets. But for all that he will have to wait for some time till the government comes out with a more plausible policy.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><b>- Pradeep Rimal</b></span></div>
<div>
	<span style="font-size:12px;"><b><span style="line-height: 115%;">Ghattekulo</span></b></span></div>
<div>
	<span style="font-size:12px;"><b>&nbsp;</b></span></div>
<div>
	<span style="font-size:12px;"><b>&nbsp;</b></span></div>
<hr />
<div style="text-indent: 0in;">
	<strong><span style="font-size:12px;"><br />
	For Higher FDI, &nbsp;Stronger GDP a Must<br />
	<br />
	</span></strong></div>
<div style="text-indent: 0in;">
	<span style="font-size:12px;">There is no denying the fact that the country needs more FDIs and that would come to the country in due course, that is when the political situation becomes normal and economy is firmly grounded.&nbsp;But for both, the country needs to stabilize itself first. And, some serious thinking has to be done as to how to increase the GDP from the current level to say some 10 times bigger in the short term. Only a robust GDP can attract FDIs. FDIs come seeking profit and if the economy is not in a position to return that profit, FDIs are known to have flown out of the country as well. In that case, it harms more than it benefits. Trade regime between Nepal-India and Nepal-China is a far cry from what the giant neighbours are witnessing. Nepali economy needs to be harmonized with the economies of its neighbours to reap the benefits of the gigantic progress being made by the two countries. That alone can guarantee a jump-start to both the economy and FDI inflow.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><b>- Sanatan Dhakal</b></span></div>
<div>
	<span style="font-size:12px;"><b><span style="line-height: 115%;">Koteshwor<br />
	<br />
	<br />
	<br />
	</span></b></span></div>',
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			'id' => '419',
			'article_category_id' => '52',
			'title' => 'Beyond The Budget 2011/12  August 2011',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">T</span><span style="font-size: 9.5pt;">he fiscal and monetary policies for FY 2011/12 made public in the third week of July have shown an appallingly anti-free market and anti-private sector tilt. The much touted about three-pillar concept that puts the government, cooperatives and the private sector at par is in itself an unfeasible proposition.</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">In a free-market economy, it is unfair on the part of the government to seek its share of the role in the market. At best, the government can be a facilitator. That means its role should be limited in introducing appropriate legislations, maintaining law and order and keeping surveillance to ensure a fair play in the market competition. That is in fact not a role of the government but its duty to be undertaken even to justify its very existence. An anti-free market argument suggest that the role of the government is essential at least to build large-scale infrastructures and to conduct economic diplomacy. But, squarely, it is the private sector tax that finances these activities, and the government is just a manager of it. If the private sector is exempted of all taxes in exchange of their contribution in building infrastructures too, one may not at all need the role of the government. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;"><img alt="fromtheeditor" border="1" height="315" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/ucpn.jpg" style="margin: 10px; padding: 10px;" vspace="10" width="400" /></span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;"><br />
	Moreover, the proposed budget (fiscal policy) plans to spend more as general expenditure (just to maintain the government) than what it plans to collect as taxes. Economic diplomacy has remained a rusted sword, unused ever since the debate began regarding its importance. For all these reasons, government's self-claimed role as one of the three pillars is thus a clumsy hyperbole.<br />
	<br />
	<br />
	There has been an extensive debate on recognising the cooperatives as an equal and parallel pillar. Apparently, the appropriate recognition it deserves is a sub-pillar under the private sector head. By all logic, effectively, there should be single pillar-economy led, invested, managed and operated by the private sector.</span><br />
	<br />
	<span style="font-size: 9.5pt;">But this policy has treated the private sector just contrary to this. The government has in fact done more harm by using its discretionary power to siphon away substantial amount of budget from development programmes to appease the Maoists. In this sense, the government role is becoming increasingly dangerous for the general people.<br />
	<br />
	<br />
	In comparison to the fiscal policy (budget), monetary policy has taken more balanced approach. For example, despite the announcement in the budget that saving and credit cooperatives would now on be supervised by the central bank, the monetary policy has chosen to remain silent on it.<br />
	<br />
	</span></div>
<div>
	<span style="font-size: 9.5pt; line-height: 115%;"><br />
	&nbsp;As the fact of the matter, both fiscal and monetary policies have come as mere rituals. The present day problems of the economy perhaps are beyond the jurisdiction and capacity of the realms of these policies. Therefore, to reviewing the economy from the present slump the leadership should first address the challenges of non-monetary and non-fiscal nature, but have direct bearings to the economic growth and prosperity of the country. <br />
	<br />
	<br />
	</span></div>',
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			'title' => 'Budget As The Booster (august 2011)',
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			'content' => '<div style="text-indent: 0in;">
	<span style="color: rgb(178, 34, 34);"><em><span style="font-size: 10pt;"><img align="left" alt="stocktaking" border="1" height="127" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/bikram(2).jpg" style="width: 103px; height: 127px;margin:10px;padding:10px;" vspace="5" width="103" />By Bikram Chitrakar</span></em></span><br />
	<br />
	<strong><span style="font-size: 18px;"><span>Market still waiting for the breach of 380<br />
	<br />
	</span></span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 10pt;">(Nepal Stock Market Review for 26 June to 24 July, 2011)</span><span style="font-size: 10.5pt;"> D</span><span style="font-size: 9.5pt;">espite moving more than 18 points up during 26 June-24 July period settling at 329, Nepal's stock market is still in an indecisive stage. Technical analysis indicates that Nepse Index should cross 380 mark before the investors can be confident to commit good money in the bourse. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The major influencing factor of the review period was the government budget for the fiscal year 2011-12. This is the first time since the Constituent Assembly election of 2008 that the government budget was announced in time, i.e. before the fiscal year started. As a result, the planned government expenditure is expected to be spent this year which will help ease the liquidity crunch in the banking system and boost economic activities around these expenditures. Moreover, the budget has also announced some direct measures that are expected to boost the market. One major announcement was the reduction in the capital gains tax in share investment from 15 percent to 10 percent for institutional investors and from 10 to five percent for the individual investors. Also announced was relaxation in the deadline for the merger of banks and financial institutions by one more year till mid-November 2012. Banks that notify the authorities by that time that they have decided to merge will get a number of concessions including the tax as was announced in the last <br />
	year's budget.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;"><img align="right" alt="stocktaking" border="1" height="310" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock data august 2011.jpg" style="margin:10px;padding:10px;" vspace="5" width="400" />Therefore, the benchmark Nepse index started moving up even before the budget was announced and gained 18.66 points or 5.11% during the review month to settle at 365.43. The highest point during the month was on 20 July at 380.23 and lowest on 27 June <br />
	at 329.49.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Even a couple of days before the budget announcement, the Central Bank relaxed its strictures on loans to the real estate and housing sectors as well as on loans against the security of publicly traded share certificates. Similarly, the market is hoping for the banks and financial institutions to announce healthy financial positions when they make public their fourth quarterly financial reports. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Bulk trading of Friday, 15 July gained a proportion of a scandal of a sort as Friday is fixed for odd lots (smaller than 10 units of shares) transaction only.&nbsp;That bulk transaction distorted the NEPSE index on following Sunday, but Nepal Stock Exchange says that anomaly was fixed immediately. Securities Board has been asking the Stock Exchange to explain the discrepancy. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">During the review period Securities Board of Nepal (SEBON) announced programs for coming fiscal year including <img align="left" alt="stocktaking" border="1" height="281" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock data1 august 2011.jpg" style="width: 415px; height: 281px;margin:10px;padding:10px;" vspace="5" width="415" />Central Depository System, Credit Rating Agency and Mutual Funds. Likewise Monetary Policy for the year 2068/69 was released on 21 July affirming the pre-budget and budget announcements. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 8pt;">Performance by Sector<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Commercial banking sector was dominating the volume of trade in Nepal Stock Exchange also during this review month. This sector accelerated 27.23 points or 8.08% to close at 365.43. Manufacturing sector gained hefty 50.44 points to reach 587.34 while hydropower sector moved up 19.57 points to rest at 608.36.&nbsp;Others sector surged by 15.27 points along with 9.04 points up in hotel sector to reach 487.61 and 408.07 respectively. However insurance sub-index skidded 17.26 points or 4.15% to rest at 415.81. Development bank lost 0.05 points or 0.02% to <br />
	close at 296.4. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;"><img align="right" alt="stocktaking" border="1" height="299" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock data2 august 2011.jpg" style="margin:10px;padding:10px;" vspace="5" width="400" />Sensitive index that measured the performance of 117 blue chips scrip went up 4.08 points or 4.54% to 89.85 while the float index calculated on the basis of real transaction increased 1.62 points to 31.07. Total of Rs. 1689316916 was realized during review period from 4457556 units of share trade via 19340 transactions.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The accompanying figure illustrates the sector wise distribution based on the total volume of trade. As usual commercial bank sector covered the highest volume holding 46.69% of total trade followed by manufacturing and processing sector (43.57%). Hydropower sector occupied 3.62% and development bank sector 2.68% while other sectors made up for the rest. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Technically, Simple Moving Average (SMA) is performing higher in the short term as Nepse index is higher than 30 days SMA forming M pattern which may result into correction. In the long run it is still weak. Only breaching the level of 380 will create some acceleration.<br />
	<br />
	</span></div>
<div>
	<i><span style="font-size: 9.5pt; line-height: 115%;">(Chitrakar is a Stock Analyst with Jamb Technologies Pvt Ltd.)</span></i></div>',
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			'description' => '(Nepal Stock Market Review for 26 June to 24 July, 2011)Despite moving more than 18 points up during 26 June-24 July period settling at 329, Nepal's stock market is still in an indecisive.........',
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			'id' => '417',
			'article_category_id' => '47',
			'title' => 'A Diamond Merchant Via Hong Kong',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div align="center" style="margin-bottom: 0.0001pt; text-align: center; line-height: 120%; vertical-align: middle;">
	<span style="font-size:12px;"><img align="left" alt="dimnond" border="1" height="310" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ramesh.jpg" style="width: 319px; height: 310px;margin:10px;padding:10px;" vspace="5" width="319" /></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 12px;"><b><span style="line-height: 120%;">Ramesh Maharjan</span></b></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle;">
	<span style="font-size:12px;"><span style="line-height: 120%;">Chairman</span></span></div>
<div>
	<span style="font-size:12px;"><strong><span style="line-height: 115%;">R B Diamond Jewellers<br />
	<br />
	<br />
	</span></strong></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Born in a farmers family, Ramesh Maharjan is known as a successful entrepreneur who has taken his business to international levels. His jewellery business has expanded to USA. Today, he is Chairman of Maharjan Group that owns five companies - Nepal Diamond Company, RB Diamond Jewellers, Nenergy International, NB Nepal Builders and Maya Foundation. These companies are active in manufacturing, export and retail business of diamond jewelleries, energy, construction and even social welfare.</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">He has three jewellery stores in USA. He has recently diversified his business through the Maharjan Group that he established some years ago. R B Diamond Jewellers is the manufacturer, wholesaler and exporter of diamond jewelleries while Nepal Diamond Company deals in diamond and gold. Nenergy International is working in the area of developing hydroelectricity. Similarly, his company NB Nepal Builders is into the housing sector while through Maya Foundation he is involved in&nbsp;welfare of differently-abled people. Likewise, Maharjan is also Chairman of Nepal Gems and Jewellery Association and is associated with various organisations and associations.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan's childhood was largely spent in the agricultural milieu. His parents were farmers in Lalitpur but they had a sense that their children must go to school and get education. He passed his School Leaving Certificate from Namuna Machhindra School at Lagankhel. He passed Intermediate from Patan Campus. However, he did not take his education further.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan and his family did not see their farm leading them anywhere. “I did not see any future there,he says. Since my childhood I thought of doing things differently and in the best possible way.Maharjan says business was sitting deeply in his mind. He was concentrating on agriculture thinking he will land a good job some day.&nbsp;Apart from his works in the field, he was active in the local clubs, libraries, and in the locality and even won a local election. At times, he thought of going for foreign employment as well.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">His young romantic days were going on. Then, his family insisted him to get married. Though young Maharjan was determined to make his dreams come true before tying the nuptial knot, he surrendered to his family and married Sarita Maharjan with whom he was in love. Sarita turned out to be his lady luck. At that time, he was just 18. Sarita's family was in Hong Kong. Maharjan's in-laws invited him to Hong Kong as they thought there is not much scope in the country. Then, he took a job in Hong Kong at a wholesale company of diamonds as a helper.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">He proved his honesty and won the confidence of the bosses. So, he was gradually given more tasks of messenger and even handling banking transactions. They even tested my greed and left thousands of dollars in open drawers when I was the only person in the office. Next morning, they used to cross-check. I never thought of betraying them but was dedicated to perform well to get more salary in a legitimate way, he narrates how he passed the tests.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Working for the whole day had a benefit that he never felt homesick. He claims he worked from 5 am to midnight so that he can sleep quietly at night and does not have to miss his family back home. He was always conscious and determined that one day he has to return to Nepal. While in Hong Kong, he developed the interest in diamonds and also thought of taking something back. Then, he requested his employer to get him some training so that he can learn about diamonds. He says, My boss was a friendly person and he used to help us with everything as he understood we the foreigners will return if we were not given proper facilities. He was also happy to see my eagerness developing for diamonds and arranged for a basic training from the very next day. After completing his works in the office, he would go for training from 9 pm to 11 pm. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><img align="left" alt="diamond" border="1" height="238" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ramesh1.jpg" style="margin:10px;padding:10px;" vspace="5" width="350" /></span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	Maharjan shares, I acquired basic knowledge on types, grading and assorting diamonds. Then, I requested my employers for further trainings. Later, he was sent to Mumbai for a six-month training at the company's factory for cutting, grading and polishing. I was there just to gain knowledge on diamonds. So, I did not even cross the railway station and kept myself fully focussed on my training. In the beginning, I felt quite uncomfortable as I did not even know how to hold a diamond properly. Gradually, I learned everything, he recalls. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">There too he spent the whole day pondering over the diamonds. He claims he grabbed things quickly and could separate colours within two weeks. As he learnt things he also started working there though he was not being paid. At the end of six months training, he was found to be performing&nbsp;well like veterans of the industry, he claims. When he returned to Hong Kong, the company's views about him changed. He was promoted to sales department. However, he did not stop learning while on the job. He says, For a couple of years more, I learnt from the market on pricing and quality and even on the ways of marketing.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">After staying for around seven years in Hong Kong, he decided to return to the country as the family also asked him to do so. When he returned, he was not alone. He had knowledge, skills and even money to invest in the business of his own. For three months, he carried out a kind of market survey, leaving no jewellery shops unvisited. In three months, he found expertise missing from the sector in his country. The way of working was not appropriate either. Then, I felt in markets like Nepal, such valuable things can only be sold with a guarantee and not as use-and-throw item, he says.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">He sees a lot of artisans and craftsmen&nbsp;here but their ways of working worry&nbsp;him. Maharjan believes that best masterpieces can be created in Nepal itself, which will have the potential to be sold anywhere in the world. I encourage people in this business to create fusion of our traditional knowledge with the modernity, he says. He does not see any competition in the field of creativity.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan has always prioritised doing something new than simply following what others are doing in the crowd. That is the mantra to be on the top, he believes. Then, he initiated manufacturing in a professional manner as he was not satisfied with the quality of locally-made jewelleries.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">For Maharjan, business is more than profit and margins. He believes jewellery business cannot sustain without goodwill and trust. He describes, Customers must be assured that they will get back cash upon returning the products. My target is to do marketing through quality rather than advertisements. Maybe, that is why he claims that he has never advertised his jewellery store or even kept a billboard with the showroom's name. He claims he gets customers through trust and goodwill gained by selling quality products.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan sees the jewellery market growing in the last four years with a definite change in lifestyle of people in Nepal. In the past, only head of the family used to earn but now everyone makes some earnings. They can afford what they desire for. Rather than copying others, now people want something unique to look different,he explains. He adds that it is Nepali culture to invest in jewelleries and houses as&nbsp;assets rather than luxury.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan says he is very much satisfied with what he is doing. His business philosophy based on service rather than just selling precious metals has grown multinational. He has stores at Manhattan Fifth Avenue, Alaska and a distribution point in Los Angeles. In 2005 the first store was opened in USA on his wife's insistence. Now, Maharjan's in-laws are looking after the stores there. We wanted to see how it works outside and we had that confidence too. We were overwhelmed by the response of people when we put up a stall for the first time at a programme organised by Nepalis in America,he proudly shares. He claims he sold jewelleries worth US$ 10 thousand within half an hour. Then, the first store in Manhattan was opened with the help of the company where he worked in Hong Kong. He says he still has good relations with the company, where he learnt the tricks of the trade. Now, the major export destination of finished diamond products from Nepal is the US itself and these products are exported through R B Diamond Jewellers.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Under his group, more than 150 employees are working. Maharjan claims that he treats them as his family. “It depends on them where the company will head for. I believe good people should prosper and succeed. I take care of their comfort and satisfaction,he shares his ways of motivating staff. He says problems are sorted out by discussing them. He has also given them assurance that they don't have to worry about their family's health and education. Maharjan also claims that he can't bear the sad faces of employees and cares that they don't get hurt.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">He is planning to expand his business further to handicraft. Maharjan's aim has always been to promote the local knowledge and craftsmanship. In his free time, Maharjan concentrates on the designs and obtaining more knowledge in the stones. He is currently busy designing for the 2012 collections. He says he can ponder over a stone for hours. Apart from that, he also likes to read spiritual books and contemplate on spiritual aspects of life. Maharjan says he is content with what he has got and does not think much about himself and his luxurious wish list. Even during leisure he plans about his companies. He says his family has always been with him even in the business so he feels lucky that he does not have to fight over managing time.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan goes back to past, I used to feel that I don't have any vision. From my seniors, I learnt a lot about life and even doing business. I am here all because of such guiding hands and suggestions. He also has the hope that his second generation will take his business further. He expects their education, energy and his experiences to lead the business in future.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div>
	<span style="font-size:12px;"><span style="line-height: 115%;">The 47 year old Maharjan is planning about making a foray into the handicraft business. Apart from that, he is also looking forward to expanding outlets all over the US. <br />
	<br />
	<br />
	</span></span></div>',
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			'created' => '2011-09-06',
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			'keywords' => '',
			'description' => 'Born in a farmers family, Ramesh Maharjan is known as a successful entrepreneur who has taken his business to international levels. His jewellery business has expanded......',
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	(int) 3 => array(
		'Article' => array(
			'id' => '416',
			'article_category_id' => '46',
			'title' => 'Joseph Massey',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size:14px;"><strong>Interview : August 2011 - 'Second Phase Of Growth Would Depend On Developed Capital Market'</strong></span></p>
<p>
	<span style="font-size:14px;"><strong><br />
	<br />
	<br />
	</strong></span></p>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><img align="left" alt="" border="1" height="200" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/int1.jpg" style="margin:10px; padding:10px;" vspace="5" width="120" />Joseph Massey is Chairman of South Asian Federation of Exchanges (SAFE), a forum of exchanges with 32 members from South Asian Region, UAE and Mauritius. SAFE works for the development of capital markets in the region and offers itself as a platform to these exchanges for global integration. Massey is also the Managing Director and CEO of MCX-SX, which currently offers currency derivatives trading and is the most recent entrant to India's public-trading exchanges. He has over 18 years of experience in the corporate and financial arena and worked with organisations like Life Insurance Corporation of India, the Reserve Bank of India (RBI), Stock Holding Corporation of India, Multi Commodity Exchange of India Ltd, Interconnected Stock Exchange of India and the Vadodara Stock Exchange. Massey was in Nepal during the executive committee meeting of the SAFE from July 6 to 8. In an interview with Gaurav Aryal of <i>New Business Age</i>, Massey shared his views on capital markets of South Asia and the current status of the Nepali share market. Excerpts:</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>What is the scope for growth of secondary markets in South Asian countries?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">I think, post-global crisis, this region is emerging as a high growth region because of the natural demand that it has got and also the governments are very keen to develop each sector so that more employment is created and global investors are willing to come and actually invest. If you look from a capital market perspective, there is demand both from primary and secondary markets. Whichever country you take in the SAARC region, it still has to make tremendously large progress in terms of domestic penetration. That market is huge. Then, we have another opportunity which is in global market. I think all economies have very large opportunity to develop in the secondary market.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Except India, other countries in South Asia have not been able to develop much in this field. What is the problem you see?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">There are couple of prerequisites for the market to develop. Indian market has a history of 130/140 years. Over such a long period, we have developed the culture of investment. Despite that, we have penetrated the market relatively less. Indian market is&nbsp;more developed because we have more instruments, more investors, more companies, good infrastructure, clearing corporations, guaranteed good regulation, and infrastructure which is comparable to the best in the world. However, there are many products that we still don't have and now India is aspiring to create those products. India has progressed but it still has a lot to do. Rest of the countries, based on their position in the cycle of economic development, could have reached some level of development in the exchanges. We expect that to happen over a period of time. When global fund comes to one region or one country, visibility of the entire region gets enhanced. Today, you see a lot of funds coming to India. Soon those companies will come and set up their companies in India. Once they set up their companies and invest there, they will also gradually look for what market opportunities are there in the region. India is gradually opening up and Indian citizens can invest outside. Once we open up the market more, a lot of investment from global market will come to India and from there they will go to the other countries of the region. I think the level of development depends on the scale of economy and how much it has developed. But it need not necessarily take the same length of time for each country to reach the same stage of development. We can cut short the time by learning from other's experience. Highlight</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Foreign institutional investors and foreign direct investors are still hesitant to enter this region whereas they are going to Taiwan, Singapore etc. Why so?<br />
	<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">These countries have been rapidly growing for a very long time. So, the global communities have already identified those destinations. As a result, in&nbsp;the last 20/30 years, their regulatory system and infrastructure have developed so much that the global investors don't see a difference between these countries and their home markets. In SAARC region, some countries have progressed well while others have not. But we all know the model that we have to implement. We just need a more concentrated effort in finding out what are the gaps; what they have and what we don't have. And, we can put regulation and infrastructure in place. The domestic demand being so large, we will see the same level of capital coming in this region eventually. Today, we are not there but we need not take another 30 years to reach there. We can reach there in next five years.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>What is the objective of creatig a South Asian network of stock exchanges?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">I think we are all determined to do this. We understand each country has its regulatory mechanism and its own capital account laws. But we want to sensitise the countries that economies of scale will be realised if this region can work as one unit. Relatively, hard infrastructures like road, transport and others may take time to be developed. Financial market is soft infrastructure which can happen easily. The secondary and tertiary gains of developing an efficient financial market are very large compared to manufacturing and few primary sectors. So, instead of developing the manufacturing sector first and then going to the financial services, it would be a good idea that in this region we shift focus to financial services and the advantage of financial services trickle down to the rest of the economy. Our cost of fund will reduce and we will be able to raise more funds for developing infrastructure, for economic activity and as a result all benefits will flow such as more jobs, better education and necessary infrastructure. So, more capital gets attracted and suddenly we will get out of the vicious cycle. Today, we are in a vicious cycle of low capital, low infrastructure and therefore, low investment. All countries can't achieve the same level of infrastructure simultaneously, but when some of them achieve a level, the trickle-down benefit will happen to the entire region.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Protection of small investors in capital markets is taken as a major challenge. How can such network protect the&nbsp;investors?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">At SAFE, we have identified the global best practices. Each country has adopted these global best practices which are prescribed by IOSCO (International Organisation of Securities Commissions). What SAFE does is that the good practices of one country are shared with others. We don't wait for those countries to learn these things over a period of time. We are sharing these experiences with each other so, until real business can get done, we can share a lot of knowhow and ensure that the level of knowledge of each one is the same.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Why are South Asian governments hesitant in opening their markets for international investment?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">We are saying that we need to have investor protection. So, should we open the market or not? The first level of investor protection is that you have better infrastructure for trade, better laws, and more capital to protect them. All these things can come if you have a market of significant size. We want the best protection to be given to the domestic investors. But we cannot provide that as our markets are very narrow, we don't have all the products, we don't have large number of investors, our trading volume is small and the number of companies is low. You know that the total income from such market will be naturally very less. So, we need to invest more in increasing the capital, improving law and, giving the investor better safety. If you widen the investor base then obviously it will generate more resources. You will be able to draw more resources into the infrastructure, set up a clearing corporation, depository, have best tools and educate your people better. So, you need the capital market to be very efficient. Today, each country has domestic investors but they are very few. We need institutional investors who can bring in big money and take a deeper and longer view. So, once we complete this, we have to complete the market by getting good quality investors by offering all the products available today in the global markets. Once you create these two, your protection will improve; your market will become safe because your market is aligned to global market. If the investors are investing in the growth of Nepal, you get a diversified base of investors in which some are taking a view with 10 years, some with five years, and some with just one year or less. When you get the mix of all of them, your market will be stable. Some may go out but many others will stay.&nbsp;</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>How do you see the future of capital market in this region?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">I think there are three or four facts which indicate that the future of capital market is enormously good. All the countries in this region more or less have the same level of development. They are developing and gradually going up the scale. In the initial phases, all of them are dominated by the public sector enterprises. Public sector enterprises naturally have the challenge of resources. Since the demand of economy is very large, there is a requirement of private capital and private production in order to supply that requirement which the public sector will not be able to deliver. The public sector has reached its level and now the private sector has to come up. It has to come up in infrastructure, education, manufacturing, services and everywhere. For developing all these, the people need risk capital. The risk capital can only come from the capital market. So, I think one is dependent on other. If you have a robust capital market, more people will be able to raise capital and set up an economic enterprise which will create more jobs and more business ventures. It is a cycle. Every economy has realised that we have gone through the stage where the public sector was dominant and&nbsp;banks had a major role to play. Second phase of growth is going to be dependent on developed capital market that should have equity, bond, derivative, service management etc. so that people can raise short term money and long term money. Then, we will see private enterprises start coming in. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Experiences have shown that the derivative trade has distorted the natural growth of the market. Can South Asia region avoid such distortion?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><img align="right" alt="inteview" border="1" height="287" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/int.jpg" style="margin:5px;padding:5px;" vspace="5" width="400" />SAFE is advocating an exchange traded market where derivatives get traded on the exchanges. They are safe because the counterparty has a guarantee from a clearing corporation. They are better risk-managed, more tightly regulated, and more transparent. As a result, exchange traded market is always a safe market. In 2008 and in the earlier 1998 crisis, what went wrong was outside the exchanges. So, the lesson from the 2008 crisis is that&nbsp;we should get more and more products on the exchanges. Second lesson is we can have laws which are similar all over the world. So, G20 is now advocating that we should have such norms and regulation that are similar in all countries. The advantage SAARC region has is that we don't have to make the same errors some other countries have made. We now already have better regulation on banking system and in the securities market, we have all the institutions developed, most countries have depository, clearing corporations and most countries now trade on electronic system. Having built an infrastructure that is similar to global environment and global rules that are gradually becoming common, I think we are operating on a much safer market.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Many prominent stock exchanges like those in Europe and Japan have either crashed or remained stagnant for a long&nbsp;time now. Is it so because those economies have reached the point of saturation?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">Post-2008, two things have happened. While the exchange traded markets are same, their economy is slowing down and the financial system has observed a very large amount of loss. It will take a long time for them to come out of these losses that they have suffered outside the exchanges. Secondly, those economies are diversifying to come back to high growth phase. In doing so they are investing outside the country. You can't increase the economic growth significantly if the economy is already developed. So, they will only have to look at investing and business opportunities in rest of the world. The good news is while Europe and the US are slowing down, Asia and Africa are&nbsp;growing. If you look at world growth perspective, today there is more demand than it was before. According to a recent news, Boeing is supplying US$ 30 billion worth of planes but all these planes are going outside US. The world economic structure is changing. There is more demand outside Europe and US. And the world community is happy. It does not matter whether I sell my planes in US or outside US. In this process, companies benefit, the society where they work benefits, overall the whole world benefits. So, until the global market continues to be on a growth stage, I think it is a good news and more and more of this will continue to happen. Today, we are living in the era when the world market has more or less started looking similar or at least it has aspirations to look similar. So, we are getting into more openness, more transparency, similar regulation, more international trade. The growth of one will cause growth in other. I think the world economy will continue to grow, especially these emerging economies and developing countries will continue to grow for next 30/40 years and it is good news to the rest of the world.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Do you see the possibility of instruments and mechanism like regional mutual funds in South Asia to invest in the share market?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">One of the discussions that we had both with the SAARC secretariat and the central bank here was in this very line. We should try and create some kind of regional hub in which we could have institutions which are not only taking domestic view but are taking the regional view. It could be regional investors, regional mutual funds and exchanges with cross border trading. It will depend on how much time it will take for each regulator and each country to digest that. But I think in the foreseeable future, in next two to three years time some of these concepts will actually become a reality.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Now, the commodities future trade is also booming in the region. And they seem to have posed sort of regulatory challenge. In Nepal such market is blamed to have facilitated capital flight. How is your view? <br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">Commodities markets are markets for risk management. Secondly, they are market for giving price signals of what is expected to happen in future so that policy makers can take policy measures three months or six months in advance. Third, the physical market for commodities lack transparency, they are fragmented. To give a common view to the rest of the world on what is happening in this market, whether there is crisis building up or not you need to have an efficient futures market. An efficient futures market also brings an efficient physical market. I don't agree that commodities market cause flight of capital because it is essentially a market for risk management. People will not invest very large amount of money until they invest in the physical market. Futures contract should be for one, two or three months which is not a long-term investment. Typically, flight of capital takes place because of other natural economic indicators like high inflation, low growth of economy and interest rate structure. The domestic capital has to remain here and does not have an option. But if it is global capital, it goes to the most efficient market which has high growth, low interest bearing and good opportunity for growth. Commodities markets are rational markets. These markets will look at the fundamental demand and supply. Based on the fundamental demand and supply, price recovery will take place. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">If someone is buying wheat, cotton or gold, that means the price of that commodity in the future can go up. But the price&nbsp;of a commodity futures contract will go up only if the physical commodity goes up. Physical gold is going up because someone is buying physical gold. They are too integrated together. Physical market demand and supply is dependent on actual consumption and actual supply. I don't think we should panic at the price fluctuation in the commodities exchanges. However, if we can have&nbsp;regulatory system, more transparent system, better safeguard on exchange, clearing corporation it will eb better because then some of these worries&nbsp;will go away. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Of late, the share market index as well as confidence of investors has remained low in Nepal. How can these be bolstered up ?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">There are no shortcuts to it. When an economy is going through a low cycle and if you only have domestic market, the entire country has one view. You don’t have a contrary view from anyone else because you only have individual retail investors. Their appetite to take a long term call is very minimal. So, when your market is going through slowdown, the individual investors will be more scared so they will also take a view which is not more than a day. Now, you need someone who can take a view which is for one month, one year or five years. This can only be done by institutional investors. So, it is paramount that Nepal tries and builds up domestic institutional investor community so you can put mutual funds in place. I don't know how your pension industry is, but I can be pretty sure that some of those funds will come and they will invest in the capital market. And insurance industry too can invest in capital market. This is level one. You now have a person who is willing to take a call which is a longer term. But still they are domestic and have a view which is not very diversified. If you can adjust global investors inside, you will have a view which is very different. They are willing to take a call which is much longer, in much larger quantum of money because now the stocks are available very cheap. Their cost of borrowing will be less. They can come and do large borrowing and as a result the market will grow up. So, in a market which goes to such a long term low cycle, the only way to break out of the cycle is by ensuring that institutional money both from domestic and global markets gets attracted to the country and I think you should do that.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	<br />
	</span></span></div>',
			'published' => true,
			'created' => '2011-09-06',
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			'description' => 'Joseph Massey is Chairman of South Asian Federation of Exchanges (SAFE), a forum of exchanges with 32 members from South Asian Region, UAE and Mauritius. SAFE works....',
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	(int) 4 => array(
		'Article' => array(
			'id' => '415',
			'article_category_id' => '48',
			'title' => 'Nepal Can't Be Overpopulated (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle; text-align: justify;">
	<span style="font-size:12px;"><i><span style="line-height: 120%;"><img align="left" alt="madan" border="1" height="136" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/img(6).jpg" style="width: 112px; height: 136px;margin:10px;padding:10px;" vspace="5" width="112" />By Madan Lamsal</span></i></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(134, 55, 59); letter-spacing: -0.05pt;">E</span><span style="letter-spacing: -0.05pt;">ver since the Central Bureau of Statistics (CBS) started to make the findings of the national census public, people have started wondering whether Nepal is really overpopulated. People have started to ask the same question to several experts and not so experts, politicians and economists. And the answers that come about are very interesting.&nbsp;</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;">Some samples of the answers: Nepali Congress leaders say: Nepal is not overpopulated. The reason as furnished by a leftist politician is that, for capitalists like the Nepali Congres ,the bigger the population, the higher the voter base. So the population is less until the Congress gets enough votes to form the government.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;">If you ask a Hindu or a Muslim or a Christian fundamentalist, the answer is still no. Because, to religious leaders, the fear of being outnumbered by the other religion is persistent and they believe that Pashupatinath, Allah or Christ will come to feed any size of population.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.15pt;">But, an&nbsp;immigration officer is most likely to say yes, Nepal is overpopulated ! This is because he must be getting tired of processing thousands travel documents of youth going abroad everyday. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;">But the economists are unlikely to say either yes or no. They will only say: the moment a country has overpopulation, it will not be able to sustain any addition in the population. Some of them may even advise you to read Danish economist Ester Boserup who made strong case in support of population growth for the economic benefit of the country. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;"><img align="left" alt="madan" border="1" height="399" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/economy.jpg" style="margin:10px;padding:10px;" vspace="5" width="350" />Whatever the people of different background may say, It is futile to worry about the size of the population. Because, more people, more production, more money, more consumption, more profit to the companies and more revenue to the government and more donations to the political parties and opportunity for more extortions to the affiliates of political parties of different hues and colours. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;">Even with a population close to 30 million we have been able to feed ourselves. We don't need to worry about gainful employment here within the country, as overseas employment will be in abundance as long as Nepalis agree to work for the pay just enough to foot the travel bill and payback the loan gotten to fly abroad, after five years of work. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.15pt;">This means your country's income grows only when your people go abroad and send in money from there. That was so simple to understand for our forefathers who started the system of Lahure, i.e. sending people abroad (Lahore at that time) for earning. The same is being done today. And this should be expanded. This requires our population to increase further so that more people will go abroad and Nepal will earn more. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: 0.1pt;">Nepali economy is live and kicking just because of a growing population. Not only migrant workers, see it from every angle, the population growth is a must for economic growth. As more babies are born,&nbsp; the more diapers will be sold and there will be higher profits for such companies and a bigger pay rise to their&nbsp; employees.&nbsp;Therefore, clearly, the hue and cry of overpopulation in Nepal is an absolute anti-thesis to country's economic growth and people's well-being. </span></span></div>',
			'published' => true,
			'created' => '2011-09-06',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'Ever since the Central Bureau of Statistics (CBS) started to make the findings of the national census public, people have started wondering whether Nepal is really........',
			'sortorder' => '330',
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	(int) 5 => array(
		'Article' => array(
			'id' => '414',
			'article_category_id' => '40',
			'title' => 'Demand And Supply (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The story of power position in Nepal is that of highest potential and lowest consumption. The electricity demand in Nepal is increasing by about 10 per cent every year and close to 40 per cent of the Nepali population has access to electricity through grid and off-grid systems. The main load centre is the central zone which includes the Kathmandu Valley. Nepal owns a number of hydropower plants with a total installed capacity of around 650 MW which includes several small and medium hydropower plants owned by Independent Power Procedures (IPP). A significant amount of energy is also supplied by thermal (Diesel) and solar photovoltaic power plants besides the micro hydro plants in hilly areas. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">There is a huge power demand-supply imbalance which is evident from load shedding implemented over the last several years now. At present, Nepal Electricity Authority (NEA) is supply -deficit. While the peak power demand in wet season is more or less met by the supply, the deficit during the dry season is very high resulting in power outage for as much as 16 hours a day in the capital itself. According to a forecast, the power misery due to supply-deficit is likely to continue till at least 2013-14, when, among others, Upper Tamakoshi (456 MW) is expected to be commissioned.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Constraints</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">There is no denying that lack of development of indigenous energy sources has resulted in an over-dependence on fuel import. This drains a significant portion of the nation’s foreign exchange earnings and poses threats to long-term energy security and to the environment. Pradhan reasons, “We can’t always depend on imported energy so we have to develop hydropower as it is the cheapest form of energy. There is no alternative to hydropower.”&nbsp;The government doles out billions of rupees to buy petroleum products when prices get higher whereas the subsidy given to other energy sources pale in comparison. There should be a level-playing field without any discrimination. “The state’s attitude is the major hindrance towards attracting private sector investment in renewable energy,” alleges Shrestha. He adds that the government should let petroleum products compete with other energy products instead of being biased towards it. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Another problem is that of major differences in opinion among the energy experts who don’t seem to agree on practically anything.&nbsp;A disagreement among experts also puts the government in a lot of difficulty. A common agenda for producing 3,000 MW is the need of the hour, probably leaving disagreements for the future.&nbsp;Shrestha explains, “I personally believe there are people in Nepal who have a lot of knowledge and an idea regarding the energy sector but disagreement takes precedence among them. My request to these experts is to first ensure a position where we can generate about 3,000 MW for basic need.”</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Potential</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Bio-gas potential is immense from the perspective of Nepal’s renewable energy sector. More than 250,000 bio-gas plants have been established so far mostly in remote areas where there is no electricity. A six cubic meter bio-gas plant can generate thermal energy equivalent to one standard LPG cylinder in about 24 days. In other words, bio-gas is providing 250,000 LPG cylinders worth of energy in Nepal. This is certainly an achievement that can be taken forward. Cow dung was used for operating bio-gas plants earlier, however, a lot of experimentation has led to a state where anything bio-degradable is equivalent to cow dung. Therefore, it is viable to increase the number of bio-gas plants in Nepal. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal receives ample solar radiation with approximately 300 days of sun a year. The development of solar energy is thus reasonably favourable in many parts of the country. As per a report by Alternative Energy Promotion Centre (AEPC) under the Solar &amp; Wind Energy Resource Assessment in Nepal (SWERA), the commercial potential of solar power for grid connection is 2,100 MW. Solar panels are a highly feasible option for families using minimum energy for lighting purposes and can be installed for Rs 3-4,000 per household. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">The third largest indigenous biomass source of energy in terms of consumption is agricultural residue in Nepal which directly comes from the agricultural crops. It is therefore indicative that more than two-thirds of the total energy requirement of the country can be supplied solely from agricultural residues while considering the heating value of the resources. More than 70 per cent of the waste coming out of big municipalities is bio-degradable. This can be processed at big bio-gas plants and used for generating energy rather than sending it to landfill areas. However, for this to happen, the waste has to get collected in a segregated manner by applying ways to sort bio-degradable waste right at the source. It requires discipline though to make the users dump ‘right waste’ in designated containers themselves. Shrestha cites the example of sewerage treatment as a serious practice in most cities of the advanced countries where water is drained back in the river afte</span><span style="letter-spacing: 0.35pt;">r taking out the energy and purifying it. He emphasises that waste management is absolutely crucial in the <br />
	present context. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The major impact of power outage is on industry as it needs 1,100 gigawatt hours (GWh) of energy for the industrial sector which is about 40 per cent of the total electricity produced by NEA. It has close to 1.77 million subscribers of which 1.2 million households consume minimum energy for lighting purposes. “If we could equip these households with 100W solar panels, we can easily save 500 GWh which can be diverted to industry,” Shrestha calculates. He adds that the government must take initiatives to this effect by providing tax relief and subsidy of some kind to the households and help the nation’s industries avert collapse. On the other hand, NEA won’t be affected adversely because the industries will be there to make up for its ‘apparent loss’.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal has over 6,300 rivers and rivulets and thousands of hills and valleys. The perennial nature of Nepali rivers and the steep gradient of the country’s topography provide ideal conditions for the development of some of the world’s largest hydroelectric projects. “If we could block the water in these valleys, we can conserve the rainwater and it can be a huge asset,” Pradhan advises. Hydropower could be the engine of growth for Nepal as it would offer opportunity to create employment, alleviate poverty and provide basic services including good governance. The development of this sector can be a potent contributor for transforming villages, cities and societies in Nepal into prosperous and inclusive economic zones. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Looking Forward</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal’s imports have increased by Rs 25 billion due to severe power cuts (Rs 12 billion-diesel, Rs 3 billion-electricity import, Rs 2 billion-battery, Rs 5 billion-inverters and generators, rest on other means of energy like candles etc). The country is already facing a trade deficit of Rs 300 billion, which makes it mandatory for Nepal to find measures towards minimising imports. Pradhan says foreign investment can come for the hydropower sector as it is the only area in Nepal for which investors don’t have an alternative. “The FDI for other sectors may get diverted to other countries due to various reasons such as low wages, security environment and tax free policies. However, in order to exploit the water resources of Karnali River, for example, they have to come to Nepal,” he elucidates.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Pradhan further recommends not to link water resources to nationalism. He elaborates, “Saudi Arabia makes oil available at the cheapest rates to its people and sells surplus oil for national development. We should also adopt this policy: </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The water unused today will go in waste; this is a time bound business.” He asserts hydropower is a sustainable source of energy for Nepal as well as for the region and has the potential to minimise imported energy. He says if Nepal can focus on water management, it can not only eradicate its domestic power woes but also play a regional and global role energy-wise. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Recent developments indicate that our focus will be on reducing load shedding in the next five years or so. “My observation is that energy crisis will continue in the next five years,” says Dr Shrestha. He adds the energy sector does not hold out a very bright future and will have many problems but Nepal can certainly make some valuable progress in attaining energy independence. He also warns experts and authorities against depending on a single energy source such as hydropower and instead asks them to work for an appropriate energy-mix. “We must determine our total energy-mix scenario over the next five, 10 or 20 years now,” he asserts.<br />
	<br />
	</span></span>
	<p class="newsubhead" style="margin-top: 0in;">
		<span style="font-size: 13.5pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">Power Projects Licenses </span></p>
	<p class="newsubhead" style="margin-top: 0in;">
		<span style="font-size: 8.5pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">(List updated June 03, 2011</span><span style="font-size: 10pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">)</span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Issued Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;Survey License for Generation (Below 1 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 202 projects = 149.769 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (1 to 25 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 220 projects = 1505.661 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (25 to 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 57 projects = 2966.68 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (Above 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 34 projects = 10854.12 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Construction License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 61 projects = 1385.806 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">List of Applications</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (Below 1 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 758 projects = 642.976 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (1 to 25 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 581 projects = 3932.34 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (25 to 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 69 projects = 3840.89 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; letter-spacing: -0.15pt;">Application for Survey License for Generation (Above 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 45 projects = 16798.72 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Survey License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 71 projects = 2596.117 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Construction License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 3 projects = 23.5 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">GON Reserved Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="margin-top: 7.45pt; text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">GON Reserved Survey License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 27 projects = 1627.699 MW</span></span></p>
	<p class="BODYTEXT" style="margin-top: 2.5pt; text-indent: 0in;">
		<span style="font-size: 14px;"><i><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Source</span></i><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">: Department of Electricity Development, Ministry of Energy</span><br />
		</span></p>
</div>',
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			'created' => '2011-09-05',
			'modified' => '2011-09-05',
			'keywords' => '',
			'description' => 'The story of power position in Nepal is that of highest potential and lowest consumption. The electricity demand in Nepal is increasing by about 10 per cent every year and close to 40 per.....',
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	),
	(int) 6 => array(
		'Article' => array(
			'id' => '413',
			'article_category_id' => '40',
			'title' => 'SHADOW OF ENERGY (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 8pt;">Despite immense potentials for electricity generation, Nepalis have to suffer long hours of power-cuts. This affects its industrial output as well, which in turn makes Nepal a less attractive destination for foreign investments. To come out of the current mess, experts offer many models but the problem is they donâte agree on which one to pursue in what degree. In this cover story, New Business Age unravels the industry and the roadblocks.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<b>&nbsp;</b></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 10.5pt; letter-spacing: -0.05pt;">N</span><span style="letter-spacing: -0.05pt;">epal's current energy situation is in dire straits, to say the least. Despite its potential to be a credible power producer even to the extent of exporting surplus energy, it has miserably failed at meeting its own domestic demand.&nbsp;A mammoth 68 per cent of our energy needs are met by exploiting forest resources which has resulted in reducing Nepal's forest area to a mere 30 per cent. If deforestation continues at the current rate, one should not be surprised if we have no forests to talk about in the next three to four decades. </span></div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">With increasing population, Nepal will not be able to fulfil its energy requirements if it depends so heavily on the declining forest resources. The consumption of petroleum products has grown incredibly over the past decade-and-a-half so much so that we spend more money on importing petroleum products than we earn by our total exports. “Nepal will have to take a World Bank loan in 2020 only to buy petrol fuel if its import continues unabated in the present manner and that will be a total disaster, says Dr Jagan Nath Shrestha, Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University.&nbsp;</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.05pt;">Nepal still does not have its own reserves of gas, coal or oil in economically significant quantity. Although its most significant energy resource is water, less than one per cent of hydropower potential is currently harnessed. Nepal is extremely lucky in terms of clean water over 225 billion cubic metres of water flows down its rivers every year which is approximately 20,000 litres of water per person per day. Even if Nepal was an aggressive agro-economic country, it would consume less than 5,000 litres per person per day. Looking at this surplus, Er Gyanendra Lal Pradhan, Executive Chairman of Hydro Solutions Pvt Ltd, says, “I see no reason why we should not exploit our water resources for meeting domestic water needs as well as exporting the daily per capita surplus of 15,000 litres of water.” </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.1pt;">It's no secret that Nepal's economic and social development is critically hampered by its inadequate energy supply. Moreover, developing and exporting surplus energy resources can help develop other sectors and enable the country to import other products that cannot be produced indigenously. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.05pt;">Energy Mix<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The total energy consumption of Nepal currently stands at over 10 million tonnes of oil equivalent (TOE). While close to 90 per cent energy is derived from traditional resources, the rest comes from commercial and renewable sources. Nepal’s electricity generation is dominated by hydropower and only one per cent energy need of the country is fulfilled by electricity. Bulk of the energy need is dominated by fuel wood (68 per cent), agricultural waste (15 per cent), animal dung (8 per cent) and imported fossil fuel (8 per cent). </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.05pt;">Energy Consumption<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Energy mismanagement has been plaguing the country for a long time now. It has become absolutely important to focus on energy resources that promise sustainable supply. “The total energy availability and the accessibility, impact and applicability of renewable energy are ever so growing because energy consumption of electronic devices has come down to from about 1/4th to 1/100th,” claims Dr Shrestha. He adds that people have to become conscious about and inculcate a habit of conserving energy. For example, every kilowatt hour (kWh) of energy saved is equivalent to one kWh generation. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The overall energy consumption in Nepal is largely dominated by the use of traditional and non-commercial forms of energy such as fuel wood, agricultural residues and animal waste. The remaining energy consumed comes through commercial sources such as petroleum fuels, coal and electricity and renewable sources. It would be worthwhile to mention here that the share of commercial sources in Nepal’s overall energy consumption has increased considerably in the last decade-and-a-half. The renewable energy consumption has been registering an annual growth of more than 15 per cent on an average. And, within the renewable energy system, solar energy consumption is increasing at a more-than-steady 200 per cent annually. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">A staggering 18 million metric tonne of forest timber is cut every year while experts say that the sustainable level is only half of it. There are 5.8 million households in Nepal but only 400,000 households use Improved Cooking Stoves (ICS). These households using fuel-efficient stoves save half the energy. Barring the urban areas where ICS cannot be brought to use, a good 3 million households in rural Nepal can benefit from this improved technology. If this endeavour could be pursued in a focused manner, the consumption of timber-for-fuel can come down to half i.e. 9 million metric tonne in the next three to five years. This could help the forests grow and make the forest usage more sustainable. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The new boundary of Traditional Energy Resources (TER) has extended beyond the territory of forestry. Biomass is the major source of energy, particularly in rural Nepal as availability of biomass resources for energy production exists in abundance. The new territory of bio-energy now encompasses agriculture, livestock, industry and human settlement sectors as well. However, the use of some traditional energy sources is neither sustainable nor desirable from environmental considerations.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">More than 300,000 households use solar electricity in Nepal whereas an average of four-five kWh per square metre per day of solar energy can be generated in Nepal. The solar dryers have extensive use in the rural areas for drying of agriculture products and food. Solar Cookers are being used to cook food which saves fuel and helps deforestation to slow down. For a large part of the rural population consuming low electrical energy, there is no viable alternative to solar electricity. Besides, solar electricity generating systems do not need fuel or extensive infrastructure and are easy and quick to install. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Water is plentiful in the rugged hills of Nepal and micro-hydro provides a more practical and cost effective alternative. An estimated 150,000 households benefit from the micro hydro sector in Nepal and it has greater potential to be a major source of energy in the rural areas. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The hydropower sector has made some progress indeed over the last five years or so. The private sector has come forward promising to develop 2,000 MW while the government has projects for 600 MW under construction and another 250 MW has been added recently. “We are certainly not late in identifying the sector’s immense potential but we must make it work now to ensure that we are not behind schedule in the future, Pradhan says on a cautious note. He adds, “This country will collapse if we don’t export hydropower in the near future because we have so much to import for which we need to pay through exports.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">However, the present situation is that Nepal has developed approximately 600 MW of hydropower only. Therefore, the bulk of the economically feasible generation has not been realized yet. Although bestowed with tremendous hydropower resources, only about 40 per cent of Nepal's population has access to electricity. Most of the power plants in Nepal are run-of-river type with energy available in excess of the country's demand during the monsoon season and deficit during the dry season.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Looking at the energy consumption pattern of the world, Nepal has one of the lowest energy consumption levels. An average of 15 gigajoule (GJ) per capita is the minimum that a country can think of. Out of this 15 GJ, most of the energy is spent on cooking and thermal applications. Dr Shrestha analyses the situation thus: Nepal's electricity consumption is probably one of the lowest in the world, hitting our economic activities hard. We are facing the consequences because of low production levels in this country.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The residential needs account for the major share of energy consumption (89.1 per cent), followed by transport (5.2 per cent), industry (3.3 per cent), commercial (1.3 per cent) and then the agricultural sector and others. Due to inadequate numbers of energy intensive industries, the industrial sector holds the third position in Nepal’s total energy consumption.<br />
	<br />
	<br />
	<br />
	</span></div>',
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			'description' => 'Despite immense potentials for electricity generation, Nepalis have to suffer long hours of power-cuts. This affects its industrial output as well, which in turn makes Nepal a less attractive destination for foreign.......',
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			'id' => '412',
			'article_category_id' => '40',
			'title' => 'Give Topmost Priority To Hydropower Development In Nepal’s Interest (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong>Er Gyanendra Lal Pradhan</strong>, a hydropower specialist-cum-entrepreneur is an electrical engineer by training. He is currently the Executive Chairman of Hydro Solutions Pvt Ltd. He is also the Executive Member of Independent Power Producers’ Association, Nepal (IPPAN), Federation of Nepalese Chambers of Commerce &amp; Industry (FNCCI) and SAARC Chamber of Commerce &amp; Industry, Nepal. Er Pradhan has initiated a number of successful projects and enterprises of varied scope and sizes in his 25 years of career. He has received the prestigious ‘Manager of The Year 2006’ award from Management Association Of Nepal (MAN) and ‘Excellence Award 2010 in Energy (Hydropower)’&nbsp;from Hydro Nepal-Journal of Water, Energy and Environment. He has also won several other recognitions for his contributions to hydropower and clean energy. He has visited over 100 hydro power plants of 1 KW to 18,600 MW capacity in over 20 countries. In an interview with <i>New Business Age</i>, Er Pradhan shared his views on hydropower sector in Nepal and what can make it a booming success in the country. Excerpts:</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">How do you assess the overall development of hydropower sector in the country in last couple of decades?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The private sector started investing in hydropower after 1990 following the liberal policy adopted by the government. But there was a lack of favourable work environment due to the decade-long insurgency in Nepal. Even for the period between 2000 and 2005, you could hardly brand this sector as lucrative. However, after 2005, well-to-do and influential people including politicians have been investing and maintaining shares in hydropower projects. Today, all political parties have hydropower development as the topmost agenda in their manifestos. Though we are not late in identifying the sector’s immense potential, we must make it work now. The private sector has come forward promising to develop 2,000 MW while the government has projects for 600 MW under construction. Another 250 MW has been added recently. So, we have been making some progress indeed over the last five years or so. But, like I said, it’s about time we gave topmost priority to hydropower development in Nepal’s interest. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Despite having vast water resources, why has Nepal not been able to exploit it to the maximum?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The earth’s surface area is dominated by water at 70.8 per cent but the proportion of clean or fresh water is three per cent only. From that perspective, we are extremely lucky to have 20,000 litres of clean water per person per day in Nepal. However, water mismanagement in our country has led to where we stand today. There is no water in the tap and no water for irrigation and electricity either. You must remember that water can never be regenerated. Projects such as the ones related to irrigation can never be sustainable because they do not have adequate output income. These need to be related to hydropower because the income generated from electricity can pay for such projects. If you look at the projects today, they sustain because revenue from electricity has helped make water available at affordable prices to farmers and the common people. Flood control, irrigation, fishery and electricity should go hand-in-hand wherever possible; there are many projects in Nepal which prove this point. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Have we become over-optimistic due to climate change? What does global warming mean to Nepal? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Yes, the nature provides us clean water through snow glaciers and the glacier melting is helping us provide water throughout the year. If global warming continues at the current level, it will adversely affect several parts of the world. We will have fewer glaciers of course but it will not affect Nepal much. We get rainwater in excess of 225 billion cubic meters so we are getting more rainwater than the water from the glaciers. Therefore, our water level has not receded overall. In fact, global warming has helped us have more clean water as we have been receiving greater rainfall during monsoon. A majority of Nepal’s cities and towns are situated at an elevation. Hence, they don’t fall in the flood-prone zone. We have over 6,300 rivers and rivulets and thousands of hills and valleys. If we could block the water in these valleys, we can conserve the rainwater and it can be a huge asset. Water is like oil (energy) for us, it’s a blessing for the hydropower sector. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">What is your analysis of the debate on power production for external versus internal consumption? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Without any doubt, the first need is that of domestic consumption. The current load-shedding problem may seem a big issue right now but it can definitely be dealt with over the next four years or so. In fact, we will also have surplus with us which we should look at exporting. This country will collapse if we don’t export hydropower in the near future because we have so much to import which we need to compensate with exports. For example, iron and steel is our most exportable item at over Rs 10 billion but the net saving is only 15 per cent as 85 percent money is spent on importing raw materials. On the other hand, if we could export hydropower for the same worth, 85 per cent of the money would stay in Nepal itself. There is huge value addition when it comes to hydropower. But if we can’t use the water today, we will have new water tomorrow and it continues in that manner. We are sending precious foreign currency abroad for importing petroleum because we are not exploiting our water resources.&nbsp;&nbsp; </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Talking about alternative energy, can it be adequate for household needs? Further, do you see it contributing to industrial growth in some way? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">To tell you the truth, solar energy generates only 12 MW in Nepal which can’t end load-shedding. Do you think solar energy can meet our current requirement of 2,500 MW? The solar sector was given subsidy which yielded practically no result. There would be 2,500 MW of sustainable hydropower if hydropower sector was granted the same amount of subsidy. We won’t need any battery and there would be no pollution either. However, I do agree that solar energy must exist for people living in high mountains for the sake of social justice as we cannot take electricity to those areas with the same ease as solar energy. Other alternative energy sources such as wind too cannot support any economic activity, leave alone industrialisation. There is a potential for wind energy in Mustang and Kali Gandaki corridors but why would you generate wind at Rs 10 per unit when you can do the same at Rs 5 per unit from water flowing below these very corridors. Besides, you have to invest heavily to create necessary infrastructure on top of the mountains. Saudi Arabia gets so much of sunlight but it has no solar energy. It doesn’t have to look elsewhere because of its abundant oil resources. Similarly, we have hydropower in Nepal so we must focus on developing it instead of looking at the so-called alternatives that are not cost-effective at all. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">The government has increased 20 per cent on PPA rates but you don’t seem to be satisfied. What is your idea of a good deal?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">I will give you the numbers. Let me tell you that rates cannot be negotiated behind closed doors. Only a few Nepali companies can build projects upward of 25 MW individually because the high degree of technical and financial capacity required for building such projects may not be at the disposal of most companies. More than 95 per cent of the projects being built by Nepali entrepreneurs are below 25 MW capacities. These projects would produce power at only Rs 5.45 per unit for a 30-year average while 25 MW and above projects are built at a lesser cost and can generate power at Rs 7.50 per unit for the same period. Even the projects promoted by Nepal Electricity Authority (NEA) staff have been promised Rs 5.54 per unit. From a distance, it seems that 20 per cent has been increased on existing PPA rates for private sector investors. However, escalation has been brought down to five years from the earlier nine years. So, in effect, the net increase will come to 10 per cent only. After the increase, the rate has barely managed to reach Rs 6 per unit which is a discriminatory practice being pursued by the state. The so-called increase of 20 per cent for private sector investors is an illusion. We are not even asking for a rate of Rs 7.50 per unit. We are confident in our belief that if we are given Rs 6.50 per unit, besides being a rupee cheaper, some more projects may want to invest in this crucial sector.&nbsp;</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Despite all the fuss, private sector investment is not coming forth for hydropower development. Why so?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Well, nobody invests in a business to make losses and hydropower is no exception. The prospects must be commercially viable for any investment to come in. Further, the banks have invested a whopping 70 per cent of the total money involved in hydropower. If they have to additionally invest crores of rupees every year for infeasible projects, they are not going to finance. Therefore, no private sector project is going to invest willingly given the current situation barring a couple of projects who may invest to honour license validity. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">The government has proposed to establish a separate bank for hydropower development. Do you endorse the idea? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">We have given the government a figure of 2,500 MW to end load-shedding. We need an investment of US$ 5 billion for this. So, over the next four-and-a-half years, we will require Rs 350 billion. It is only possible if we use half the amount in the banking system of Nepal which has a total of Rs 700 billion. Given this situation, the state has to bring foreign investment as it is difficult for the private sector to do so. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">It is good to open a bank but do we really need one? It is better to have a fund manager. We have a few failed examples from the past – the state floated Agricultural Development Bank which has failed to increase agricultural production in the country. Today, the farmers take the most expensive loans from this bank at a monstrous 18 per cent. Nepal Industrial Development Corporation (NIDC) promised to boost industrialisation but now all the money has gone down the drain in the industry sector. Going by these examples, what is the logic in opening ‘another bank’? c by getting funds from abroad at 1.75 per cent and give it to commercial banks, both state-owned and private sector, and ask them to invest in certain sectors. For example, they can give it to the banks at 5 per cent and ask them to invest it at 8 per cent. It will solve the problem of interest lending and fulfill fund requirement as well. The state should manage fund and monitor it accordingly instead of opening a bank and turning it into a business proposition. </span></span></div>',
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			'description' => 'Er Gyanendra Lal Pradhan, a hydropower specialist-cum-entrepreneur is an electrical engineer by training. He is currently the Executive Chairman of Hydro Solutions Pvt Ltd. He is also the.............',
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			'id' => '411',
			'article_category_id' => '40',
			'title' => ''The Accessibility, Impact And Applicability Of Renewable Energy Is Ever  So Growing' (july 2011)',
			'sub_title' => '',
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			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong>Dr Jagan Nath Shrestha</strong> is a Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University. He is also the President of Nepal Solar Energy Society. In an interview with New Business Age, Dr Shrestha shared his views on the overall energy sector in Nepal and made a case for developing renewable energy in the wake of acute energy crisis plaguing the nation for quite some time now. Excerpts:</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><b>&nbsp;</b></span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How significant a role can renewable energy development play to minimise the effects of the current electricity crisis?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We are having a gala time right now because it’s the rainy season. But once monsoon is over, it will be back to square one — we will experience 14-15 hours of power outage again. As for renewable energy, I don’t see a problem from such energy if we need energy only for lighting purpose. Solar electricity costs far less now compared to even three years ago. Apart from that, we have had innovations in lighting over the decades that have helped us reduce energy consumption. These have helped in household energy consumption.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, the major impact of the current energy crisis is on industry, which needs a lot of energy. We need 1,100 gigawatt hours of energy for the industrial sector which is about 40 per cent of the total electricity produced by Nepal Electricity Authority (NEA). I do see a couple of options to save our industries though. NEA has close to 1.77 million subscribers of which 1.2 million are households that consume very little energy as in these households it is mostly used for lighting purpose only. If we could equip these households with 100W solar panels, we can easily save 500 gigawatt hours which can be diverted to industry. For this, we need appropriate policies. In this manner, we can save our industries from a complete collapse.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">If all the investment in setting up solar power system in the households is to come from the government, there will be problems. It will probably take billions of rupees to provide 100W solar panels to these 1.2 million households. But if these households are made ready to share some of the investment, the problem can be reduced to a great extent. The government, on its part, can help by providing tax relief and subsidy of some kind. This will definitely encourage many people to opt for solar energy. On the other hand, NEA won’t have to lose because the industries are there to make up for NEA’s loss of customers.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">But, let me caution that even though it looks very simple, its management may be complex. This calls for a blend of engineering technology and management art. Technologists or managers cannot produce results working separately, they should complement each other.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you see the priority given in Nepal to research and development (R&amp;D) in the energy sector to tackle existing energy shortage?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A lot of R&amp;D in the energy sector is being done in advanced countries on a continued basis. I cannot say how practical it is for a developing country like Nepal to do the same. What Nepal could probably do is to identify suitable energy resources for different areas and decentralise energy utilisation in the country. It is definitely a challenge for our universities and research institutions to conduct research for actualised energy applications. The outcome of this research should benefit the communities across the country and create employment. At the same time, such a study should look at protecting the environment. The energy must be efficiently used in a productive way.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What are the major impediments to the development of energy sector in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">There are two sides of the coin. We either have too many energy experts who know all about it but can’t agree with each other or we don’t know anything about energy development at all. I personally believe there are people in Nepal who have a lot of knowledge and ideas about the energy sector. However, they have not been able to work independently from the government or other agents. And, the characteristic of this group is disagreement among themselves. My request to these experts is: first ensure a position where we can generate about 3,000 MW for fulfilling the basic need of the households and of the industries. Once this objective is met, there is no harm on agreeing and disagreeing on numerous other counts. But till that time, all the experts must work out a consensus and stick to that. A disagreement among experts puts the government in a bind.&nbsp;</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you view the debate on whether to produce power for export or for consumption within the country?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Of course, our focus should be to first meet domestic needs,. But, if we do manage to produce surplus energy, we should definitely export. However, in today’s context, how can we export when we don’t have enough for ourselves? Take Bhutan’s example: it invites foreign countries to invest in its hydropower development and puts some conditions on such investments. It wants them to produce as much energy as possible but allows them to export only when the country’s internal needs are fully met. On the other hand, we are talking about exporting power while the power outage hours are ever increasing. Nepal has a problem with capital. It takes a lot of money to develop hydropower but Nepal does not have that money. An investor will definitely want to see how he can recover his investment. My opinion is that Nepal should be self-sufficient in power first. While not wanting to export is an extreme view, we also cannot talk about exporting everything that we produce.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How is the possibility of alternative energy sources meeting the industrial needs of Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The perception that renewable energy cannot help industries is wrong. It all depends on the size and location of an industry. A medium scale industry may require anything between 500 KW and 10 MW. If such an industrial unit is situated near a micro or mini hydro plant, its energy needs may be fulfilled. Similar may be the case if the industry is located near a windy place or where there is plenty of sunshine. We can ascertain the energy feasibility for an industry after taking its size, nature and location into account. Talking about solar electricity, an average of 4-5 kilowatt hour per square metre per day can be generated in Nepal. During daytime, we can use solar energy directly. It can also be stored and used in the night or when there is no sunshine.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Which one will be the most economical source of energy for a particular industry?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">After studying the energy needs of an industry, the most economical, beneficial and rewarding renewable energy option can be determined and worked upon. We must give priority to hydropower if it can be generated in a sustainable manner. Besides being economically feasible, hydropower can supply energy reliably when the concentrated power requirement is high. Comparatively, renewable energy may not be available when needed. Though, of course, it varies from case to case. There are many industries in the world which run completely on renewable energy. It is not only about solar or wind energy; it could be derived from biomass, agricultural and municipal waste also. The advanced countries rely on renewable energy because they care about environmental degradation, global warming, pollution etc. They focus on economic development, energy security and environment protection. Solar energy can be adequate for household needs, especially for lighting purposes. I know of households in Nepal who spend as much as Rs 800 per month on candles against Rs 80 for electricity. This is where micro-financing can come in and help such families to install solar panels worth Rs 3-4,000. The accessibility, impact and applicability of renewable energy are ever so growing because energy consumption of electronic devices has come down to from about 1/4th to 1/100th. Renewable energy has become a feasible option in urban areas as well. I personally feel that people have to become conscious and inculcate a habit of conserving energy. Every kilowatt hour of energy saved is equivalent to one kilowatt hour generated. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How important is bio-gas production given the amount of organic garbage generated in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.1pt;">Bio-gas potential is immense. More than 250,000 bio-gas plants have been established so far mostly in remote areas where there is no electricity. A six cubic-meter bio-gas plant can generate thermal energy equivalent to one standard LPG cylinder in about 24 days. For the sake of drawing a comparison, you can say that bio-gas is providing 250,000 LPG cylinders worth of energy in the country. This is certainly an achievement and we can take&nbsp;this even further. Cow dung was used for operating bio-gas plants earlier. But a lot of experimentation has led to a state where anything bio-degradable is equivalent to cow dung. Therefore, we can certainly increase the number of bio-gas plants in Nepal. More than 70 per cent of the waste coming out of big municipalities is bio-degradable. We must process this waste and generate energy rather than sending it to landfill areas. The problem is that the waste does not get collected in a segregated manner. We must find ways to sort bio-degradable waste right at the source. Keeping different garbage containers at the source can save segregation cost as the users will throw the ‘right waste’ in a designated container. Sewage treatment is a serious practice in most cities of the advanced countries. The water is drained out in the river after removing bio-degradable waste from it and purifying the water. Waste management is absolutely crucial in the present context. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What’s the current state on private sector investment in renewable energy? What can be done to make this more adequate and on a bigger scale?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Private sector invests in a sector where it sees a profit. Its investment in renewable energy will happen once there is a healthy competition in the energy sector. The government doles out billions of rupees to buy petroleum products when prices get higher whereas the subsidy to micro-levl hydropower, solar and wind energy projects, for example, pales in comparison. Given this scenario, private sector investment in renewable energy is a distant dream. The government is biased towards petroleum products instead of letting them compete with other energy sectors. There should be a level playing field. The subsidy given to proven renewable energy technology is inadequate and impacts adversely the opportunity for private sector investment. The government should proactively employ proven technologies instead of giving subsidies. For example, the price of electricity sold by NEA has not increased in the last decade or so. Renewable energy sources cannot provide power at the NEA’s low rates , which are highly subsidised. Therefore, it’s no surprise that the private sector does not want to invest in renewable energy. They won’t get the desired returns. We need to correct the situation and ensure a level playing field to lure the private sector to invest.</span></div>',
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			'created' => '2011-09-05',
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			'description' => 'Dr Jagan Nath Shrestha is a Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University. He is also the President of Nepal Solar Energy............',
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	(int) 9 => array(
		'Article' => array(
			'id' => '410',
			'article_category_id' => '34',
			'title' => 'Bankers Call MoF, NRB Irresponsible (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 15pt;">B</span><span style="font-size: 9.5pt;">ankers have criticised Ministry of Finance (MoF) and Nepal Rastra Bank (NRB) for not fulfilling their duties even when the financial sector is passing through a crisis. They said they are disappointed with the functioning of MoF and NRB. Ashoke Rana President of Nepal Bankers Association complained, “NRB has always ignored our suggestions and our recommendations are never implemented.”</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Speaking at the interaction programme organised by Society of Economic Journalists - Nepal, Rana said that though suggestions are given to the Minister of Finance, nothing is done about them. He also alleged that NRB’s role has been biased. He claimed that NRB itself is in problem and lacks corporate governance. Rana also criticised NRB for not being able to regulate the banking and financial sector properly which led to the banking sector turning sick.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">He said that the steps taken to solve the problem of liquidity are incomplete and short-term. He claimed that recent steps taken by NRB to ease the liquidity crisis have only shifted the liquidity in the system but new liquidity has not been added. He also declared that inter-bank lending cannot be provided to sick development banks and finance companies.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Jhapat Bahadur Vohra, the then President of the Nepal Development Bankers’ Association, advised the government to bring special programme to address the liquidity issue through budget and monitory policy. He alleged that the faulty policy of the government shifted the capital to the informal sector. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Similarly Rajendra Man Shakya, President of Nepal Finance Companies’ Association, charged NRB with working against the institutions rather than in their favour. He alleged that NRB has intentionally put pressure on small companies. “If the NRB does not support these companies with a positive intention, there is no alternative but to close them down and submit the keys to the NRB,” he threatened.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Credit Rating Regulation Passed</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">T</span><span style="font-size: 9.5pt;">he Ministry of Finance has passed the Credit Rating Regulations. The draft prepared and sent by Securities Board of Nepal (SEBON) was approved by the ministry on June 24 with some amendments. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">After implementation of the regulation, the companies dealing with capital market instruments are obliged to be credit-rated.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">However, such agencies must have investment from a foreign company with at least five years of credit rating experience in international market and a minimum of Rs 20 million paid-up capital. Foreign partners can hold 25 to 75 per cent stake. Such agencies will rate companies issuing IPO, rights share, preference shares, debentures and other securities.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">FNCCI in Favour of Self Declaration of Wealth</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt;">F</span>ederation of Nepalese Chambers of Commerce and Industries (FNCCI) has officially proposed the government to bring in a scheme for voluntary declaration of wealth for the last time. FNCCI proposed such a scheme to the Ministry of Finance before implementing the laws on money laundering.</div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.25pt;">FNCCI proposed it while giving its views and suggestions for the budget. Similarly, FNCCI has also demanded to scrap the provision to produce the source of income while dealing with transations worth over Rs 1 million and buying and selling of properties above Rs 3 million.</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Ministry officials to collect loan repayment in Malaysia</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt;">A</span> team from the Ministry of Labour and Transport Management will go to Malaysia to collect loans provided to Nepali workers. These loans were provided in 2004 under Employment Promotion Programme and most of the borrowers are currently working in Malaysia. According to a source at the ministry, the team will visit companies where borrowers are currently working to collect the loan repayment. A six-member team will leave for Malaysia on June 27.</div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	The government had dispatched Rs 45 million as loan to indigenous, ethnic, Dalit, neglected, downtrodden and conflict victim communities. According to the source, after adding the interests, the loan amount has crossed Rs 60 million.&nbsp;</div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-align: center; text-indent: 0in;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">NDEX Begins &nbsp;Spot Contract</span></span></div>
<p style="text-align: justify;">
	<span style="font-size: 10pt; line-height: 115%;">N</span><span style="font-size: 11pt; line-height: 115%;">epal Derivatives Exchange (NDEX) has begun spot contract of gold and silver from June 27. NDEX has been working for two years on the future exchange of metals, energy and agriculture products. According to Santosh Pradhan, Chairman and Managing Director of NDEX, spot contract was commenced to diversify the investment of investors<span style="letter-spacing: -0.25pt;">.<br />
	</span></span></p>',
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			'description' => 'Bankers have criticised Ministry of Finance (MoF) and Nepal Rastra Bank (NRB) for not fulfilling their duties even when the financial sector is passing through a crisis. They said......',
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	(int) 10 => array(
		'Article' => array(
			'id' => '409',
			'article_category_id' => '34',
			'title' => 'Siddhartha’s Branchless Banking At Dailekh (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt;">S</span>iddhartha Bank Limited has kicked off its branchless ‘Easy’ banking service from Dailekh. The bank launched the service on June 15 by issuing a smart card with which banking transactions can be made. Chief District Officer of Dailekh, Bashudev Adhikari, inaugurated the new service.</div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.25pt;">The need for this service arose as the bank has to manage cash distribution under the World Food Programme’s Cash for Work. The bank said that the machine provided for the branchless banking at Dailekh identifies its customers by their fingerprints and photos, making the service secure and effective. With this service, people can access services like deposit, loan, remittance, money transfer, among others in the village itself. The bank also said that the social security allowance provided by the government can be distributed to people with this service.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">PLO Doubling Its Production</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt; letter-spacing: -0.05pt;">P</span><span style="letter-spacing: -0.05pt;">urbanchal Lube Oil Pvt Ltd (PLO) is doubling its production from the coming fiscal year. Bhola Dulal, Managing Director of the company, said that PLO is doubling its capacity as per the policy to increase production every year. He added, “We are also increasing production to make Nepal independent in lubricants and grease.”</span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The company produces&nbsp;one million litre of lubricants and 550,000 kilograms of grease. According to Dulal, PLO plans to produce three million kilograms of grease and lubricants from the next year. PLO is also preparing to add infrastructure to increase the production. Established with Rs 11 million investment in 2001, the company’s share capital has increased to Rs 150 million. The company claims that lubricants produced by the company under brand names PLO and Star covers 26 per cent of the market share. The company is producing over 200 types of products by importing raw materials mainly from Dubai, Quatar, Australia, Russia, Korea, India and Iran.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">SEBON Revamp Needs More Staff</span></span></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">Securities Board of Nepal (SEBON) has brought some changes to its organisational structure. Dr Surbir Paudyal, Chairman of SEBON, said that amendments were brought in to enhance its capacity. He also informed that amendments were made based on a report prepared by Securities Board of India (SEBI).</span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">In the old structure, there were seven departments and 13 sections while the new structure will have six departments and 23 sections. Currently, there are 38 employees while the new structure will have double the number of staff. SEBON’s announcement of a revamp comes at a time when there is widespread criticism of its effectiveness. SEBON has been given the rights to regulate Mutual Funds and Credit Rating Agencies, and while Commodities market is also likely to fall under its jurisdiction. Paudyal said that it would take some time for new the structure to come into effect.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Food Production Rises By 11%</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt; letter-spacing: -0.25pt;">F</span><span style="letter-spacing: -0.25pt;">ood production has increased this year by 11 per cent compared to the previous year. Dr Hari Dahal, Spokesperson at the Ministry of Agriculture and Cooperatives, said that with the growth in production, Nepal will have a food surplus of 110,000 thousand metric tonnes.Dahal said that last year the country witnessed a deficit of 330,000 metric tonnes of food grain. “In the current fiscal year, 8.61 million metric tonnes of food has been produced which is 11 per cent higher than the last year,” he revealed. In the previous year, 43 districts faced food-shortage while this year the number has come down to 38.</span></div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	According to Dahal, favourable climate, increased subsidy in chemical fertilizers, use of improved seeds and technology resulted in the increased production. Out of the total production, 367,000 metric tonnes will be used to produce feeds for livestock. There is a demand for 5.4 million metric tonnes of food grains annually.&nbsp;</div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">NTA Proposes To Use RTDF</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="">N</span><span style="font-size: 9.5pt;">epal Telecom Authority (NTA) has sought permission from the Ministry of Finance to use the funds collected in Rural Telecommunication Development Fund (RTDF). NTA Spokesperson Kailash Neupane said that the authority wants to use the amount collected for the development of telecommunication infrastructures. Rs 3.25 billion has been collected in the fund so far.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Neupane revealed, “With the amount, NTA is planning to issue tender to lay optical fibre in all 75 districts. As soon as the ministry approves the proposal, we will issue the tenders.” According to the telecommunication policy, the amount in fund can be used by NTA to finance infrastructure development. Telecommunication operators contribute two per cent of their income to the fund. Purushottam Khanal, Chief of Rural Telecommunication Department of NTA, said, “We are planning to extend information highway all over the country with the accumulated fund.”</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">NTA has planned to complete the development project in two phases for east and western parts of the country. Khanal revealed that NTA has earmarked Rs 2.59 billion for the eastern region while Rs 1.90 billion for the western region. As of now, 35 districts are linked by the optical fibre. NTA started collecting two per cent from the service providers since its establishment in 1994-95. Now, around Rs 1 billion is collected annually in the fund.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">20 Places Shortlisted for Mid-Hill Cities </span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">T</span><span style="font-size: 9.5pt;">he government has shortlisted 20 places along the proposed mid-hill highway to select ten of them as new cities. The selection was made by Ministry of Physical Planning and Construction ont he recommendation of&nbsp;Prof Dr Bhim Subedi, the consultant associated with city identification project. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Among the 20 shortlisted places three are from Accham including Rakam, Safebagar and Binayak. Similalry, three places of Rukum – Chaurjahari, Rukumkot and Musikot - are in the short list. Among the other places shortlisted are Fidim, Basantapur, Dumre, Ghurmi, Khurkot, Baireni-Galchhi, Diktel and Patan (Baitadi). Similarly, Burtibang, Dipayal,&nbsp;Dulegauda, Jarayotar (Bhojpur), Kurintar (Chitwan) and Mangaltar (Kavre) are likely to be chosen to be developed as cities.&nbsp; <br />
	</span></div>
<p style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Though there are more than one place included in the short list, Prof. Dr. Subedi said that his recommendation is to select at least two places from each development region to ensure proper regional balance.</span></p>',
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			'description' => 'Siddhartha Bank Limited has kicked off its branchless ‘Easy’ banking service from Dailekh. The bank launched the service on June 15 by issuing a smart card with which banking.....',
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	(int) 11 => array(
		'Article' => array(
			'id' => '408',
			'article_category_id' => '34',
			'title' => 'Birgunj SEZ Construction (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">T</span><span style="font-size: 9.5pt;">he construction work in the special economic zone (SEZ) of Birgunj is nearing completion. However, industrialists complain that the law needed for the operation of the SEZ which is hoped to boost exports, is still not enacted.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The SEZ is being constructed in an 832 bigha land that was once the premises of Birgunj Sugar Mills.&nbsp;The idea to establish a SEZ at this location was finalised seven years ago with an objective to increase export competitiveness of the country. The government began building the SEZ as per the Industrial Policy that promises various facilities to the exporters. However, the industrialists are arguing that the facilities should be provided also to the industrial units that produce goods for consumption within the country. Jagdish Agrawal, Chairman of Nimbus group of companies said the government policy to protect only the export-oriented industries is wrong. He said that in a country like Nepal where the internal production is not enough to meet the internal demand, there is no point in providing incentives only to production meant for export. He also suggested setting up economic zones specialised in certain products. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Om Prakash Sikaria, Former President of Birgunj Chamber of Commerce and Industry however, expressed hope that the SEZ would help in the development of export-oriented industries in and around Birgunj. However, he complained at the delay in introducing a separate law required for the operation of the SEZ.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Both Agrawal and Sikaria pointed out that the Birgunj SEZ will have problems as it is located away from the highway and the dry port. The Birgunj SEZ will have five blocks. Among them, block A will be the biggest with an area of 343 bigha. Block B will have 123 bigha while the area of block C will be 49 bigha. Similalry, block D will have 178 bigha and block E will be of 133 bigha.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169); letter-spacing: -0.6pt;">Maoists not for Majority Foreign Stake in Nepali Banks</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt; letter-spacing: -0.1pt;">U</span><span style="letter-spacing: -0.1pt;">CPN –Maoist Constituent Assembly (CA) members do not want branches of foreign banks in Nepal. They have started political lobbying saying the foreign banks established in Nepal will leave negative effects on the economy.</span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.15pt;">They have taken a stand not to allow foreign banks to own more than 49 per cent stakes in banks in Nepal. They want it to be included in the Banks and Financial Institution Act (BAFIA) which is in the process of amendment. “This is the issue of nationality,” said Narayan Prasad Sharma, a Maoist CA member and coordinator of BAFIA sub-committee. “We are determined to make provisions that only Nepali citizens and entities can hold a majority stake in Nepali banks,” he added. “It will be a threat to the national economy if 51 per cent stake is not held by the Nepalis,” he clarified. Another Maoist CA member Hari Roka said that the provision about the ownership of a foreign bank branch should not exceed 49 per cent and it should be mentioned in the law itself. However, the Maoist stand is against the World Trade Organisation (WTO) provisions. While being the member of WTO in 2004, Nepal had signed an agreement to allow foreign investments into the country from 2010.</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Panchakanya Operates On Full Capacity</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 13pt;">P</span><span style="font-size: 9.5pt;">anchakanya Steels, a Panchakanya Group company, has begun operating to its full capacity. Biswojay Pudasaini, Sales Manager of the company, said that the company has invested Rs 100 million to increase the output.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">With the upgrade in production, the company has begun producing 80 thousand metric tonnes of steel rods annually. Previously, only 60 tonnes of steel rods was produced in a year. Pudasaini claimed that with the increase in production, market share will also increase to 25 per cent. He said that government and foreign projects largely use Panchakanya Steels products.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Panchakanya began producing to its full capacity from the second week of June. According to Pudasaini, the company installed the latest technology after replacing the old one. However, he said that the product is yet to be supplied to the market. The company is producing rods from its plant at Bhairahawa.</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169); letter-spacing: -0.6pt;">Shiva Ram wins Surya Nepal Central Open</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">S</span><span style="font-size: 9.5pt;">hiva Ram Shrestha registered an eight-stroke victory over Sanjay Lama to take home the Surya Nepal Central Open title at the Gokarna Golf Club. He carded four-under 68 on the final day for a total of 10-under 278 to list the 11thcareer title, highest by a pro in the Nepali tour. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Similarly, Lama stood on second position with a total of two-under 286 after the final round score of five-under 67, while Mani Rai played a round of six-over 78 to score the third position at&nbsp;one-under 287. Samundra Giri and Ramesh Nagarkoti shared the fourth position at 289.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">In amateur category, Tashi Tsering claimed the trophy with a total score of 10-over 298 while Bikash Bogati came second at 299.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Out of the total cash purse of Rs 425,000 of the third event under the Surya Nepal Golf Tour 2011-12, Shiva Ram received Rs 90 thousand, while Sanjay bagged Rs 57 thousand. Similarly, third-placed Mani pocketed Rs 45 thousand. Dorji Sherpa, Vice-President of Gokarna Forest Resort and Ghana Shyam Thapa, former President of Nepal PGA handed over the prizes to the winners.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Deposit Insurance Mandatory for Commercial Banks Too</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 10pt;">N</span>epal Rastra Bank (NRB) has started sending letters to commercial banks directing them to insure deposits up to Rs 200 thousand. “We have directed commercial banks to ensure deposit insurance in next fiscal year,” Bhaskar Mani Gyawali, Spokesperson of NRB, said.</div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	The central bank has said that deposit insurance has been made mandatory to safeguard the deposits of common depositors at a time when financial institutions are considered fragile. Gyawali said that deposit insurance is made extensive as a part of winning back confidence of depositors. Deposit insurance programme began this year starting from development banks, finance companies and microfinance banks. Till date, deposits of Rs 529.6 million of 1.4 million depositors in 138 financial institutions have been insured.&nbsp;</div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Eight Polytechnics in the Offing</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 13pt;">E</span><span style="font-size: 9.5pt;">ight new polytechnic institutes will be set up in different parts of the country with financial assistance from the Nepal government and some friendly countries. Total investments into all these institutions will add up to Rs 3.32 billion. These institutes will be established in Makwanpur, Rupandehi, Rautahat, Sarlahi, Kailali, Dhanusha, Chitwan and Kathmandu. Bishnu Koirala, Director of the Council for Technical Education and Vocational Training (CTEVT), said these establishments will be financed by national and foreign investments.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">With a financial assistance of Rs 450 million from the Indian government, a polytechnic will be set in&nbsp;Hetauda, Makwanpur, will be established with the support of Indian government. According to Koirala, Another polytechnic will be set with a Korean assistance of Rs 520 million in Butwol, Rupandehi. Polytechnic institutes in Janakpur, Chitwan, Kathmandu and Kailali will be set up with a government assistance of Rs 500 million for each of the institutes.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<p style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Similarly, nursing institutes will be set up in Gaur, Rautahat, Malangawa and Sarlahi with investments of Rs 150 million each by the Nepal Government. According to Koirala all these institutes will be ready in four years. </span></p>',
			'published' => true,
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			'description' => 'The construction work in the special economic zone (SEZ) of Birgunj is nearing completion. However, industrialists complain that the law needed for the operation of the SEZ which is....',
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	(int) 12 => array(
		'Article' => array(
			'id' => '407',
			'article_category_id' => '34',
			'title' => 'NEA Deceived On PPA Rate (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="">T</span><span style="font-size: 9.5pt;">he private sector has accused Nepal Electricity Authority (NEA) of deceiving electricity producers on the rate of Power Purchase Agreement (PPA). NEA has increased PPA rate by 20 per cent on projects up to 25 megawatts.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Previously, electricity producers could raise price up to nine times in PPA rate but now they can increase up to only five times. With this, the PPA increase rate said to be 20 per cent will actually be 10 per cent, said Gyanendra Lal Pradhan, a power producer, The government promised to increase PPA by 20 per cent in projects that will be completed within four years but NEA did not follow it.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The private sector is saying that with the latest increase, internal return rate will be lower than 12 per cent. Power producers are saying that nobody will be interested to borrow from banks at 16 per cent and invest for that rate of return. Independent Power Producers Association-Nepal (IPPAN) says that for 30 years, average PPA rate should be fixed at minimum Rs 6 per unit. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Dr Subarna Das Shrestha President of IPPAN said that due to high interest rate, ongoing projects are also on the verge of being scrapped.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 24pt; color: rgb(0, 92, 169);">Bhatbhateni Supermarket in Koteshwore</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14pt;">B</span>hatbhateni Supermarket and Departmental Store has opened its new outlet at Koteshwor from June 11. During the inauguration, Min Bahadur Gurung, Managing Director of Bhatbhateni, said that the new shopping centre is equipped with customer care desk, elevator and escalator for physically challenged people along with other modern amnesties.</div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	He said that 200 people are getting employment in the supermarket out of which 90 per cent are women. The five–storey supermarket has been built at an investment of Rs 500 million. Gurung revealed that within this fiscal year, new supermarkets will be established at Jawalakhel and Chuchepati. He said its chain outlet in Pokhara is under construction. He also revealed that supermarkets at Bhatbhateni and Maharajgunj register an annual turnover of Rs 2 billion.<br />
	 </div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 22pt; color: rgb(0, 92, 169);">Electricity Development Corp within 15 Days<br />
	<br />
	</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt; letter-spacing: -0.25pt;">T</span><span style="letter-spacing: -0.25pt;">he government has announced to set up Electricity Development Corporation within 15 days from June 8. Gokarna Bista, Minister of Energy, said, I will show by establishing the corporation within 15 days. He added, Committee formed for the inception of the corporation is working to complete the task within seven days.</span></div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.25pt;">Finance Minister Bharat Mohan Adhikari said that legal consultations are going on for setting up of the corporation. He also revealed that the corporation will not be controlled by the government but will be an independent unit. World Bank, Asian Development Bank, China Exim Bank and other international entities will be invited to invest in the company. Bista said that the seed capital of the corporation will be around Rs 7 to 15 billion. The government had proposed the establishment of Electricity Development Corporation after declaring power emergency in the country some months ago.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);"><br />
	Siddhartha and NMB to Operate Mutual Fund<br />
	<br />
	</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt;">S</span>iddhartha Bank Limited has become the first company to file an application to the Securities Board of Nepal to work as a mutual fund. One year after the regulation came into force, first application for licence to run mutual fund has been registered.</div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.25pt;">Siddhartha Bank has begun the process of establishing a mutual fund under the name Siddhartha Mutual Fund. The bank is planning to establish fund under Siddhartha Asset Management, bank's sister organisation, according to Bhola Dhungana, Office Secretary of the bank. The fund will be established with Rs 100 million paid-up capital. The company has said it will begin operation as soon as it gets approval from the SEBON. Similarly, NMB Bank has also registered an application on SEBON to operate its NMB Mutual Fund. NMB has prepared necessary requirements for operating the mutual fund. The fund will be managed and operated by sister organisation of the company, NMB Capital Limited.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 24pt; color: rgb(0, 92, 169);"><br />
	Interbank Lending For Six Months</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt; letter-spacing: -0.25pt;">B</span><span style="letter-spacing: -0.25pt;">anks and Finance Companies can issue interbank loans for up to six months. Nepal Rastra Bank (NRB) has made a special provision for interbank loans with effect from June 27. Bhaskar Mani Gyawali, Spokesperson of NRB, said, To lower the pressure of liquidity, this special provision is made.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	Now, commercial banks, development banks and finance companies can issue loans to each other against the acceptable collateral. According to Gyawali, such lending will be for six months on the maximum.&nbsp;</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20pt; color: rgb(0, 92, 169);"><br />
	Progress in Amending Securities Transaction Act<br />
	<br />
	</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt;">T</span>he Securities Board of Nepal (SEBON) has presented a proposal to the Ministry of Finance (MoF) to amend the Securities Related Act 2007. Paristha Paudyal, Director at at the Board's Regulation Department said, the amendment is to accommodate a provision to authorise the Board to regulate the commodities exchanges as well.</div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<p style="text-align: justify;">
	<span style="font-size: 11pt; line-height: 115%;">In this year's budget, the government had announced to arrange for regulation of the commodities exchanges. Accordingly, a committee was formed with representatives from SEBON, MoF and commodities exchanges. The proposed draft amendment is based on the recommendation of the committee, said Paudyal. Currently, there are five exchange companies in operation while five more are trying to acquire license. </span></p>',
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			'description' => 'The private sector has accused Nepal Electricity Authority (NEA) of deceiving electricity producers on the rate of Power Purchase Agreement (PPA). NEA has increased PPA rate by 20 per.....',
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	(int) 13 => array(
		'Article' => array(
			'id' => '406',
			'article_category_id' => '34',
			'title' => 'Nimbus Trains 2,000 Poultry Farmers(july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	Nimbus has conducted around 34 free trainings this year to 2,000 poultry farmers in different parts of Nepal. It has been conducting these trainings on a monthly basis and has covered more than 50 districts of the country so far. The poultry farmers were trained on poultry farm management, bio security at small farms, commonly encountered poultry diseases, summer and winter management, summer stress, vaccination schedule etc.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	Nimbus has its own training cell which is headed by a veterinarian. It also has a mobile training center to train poultry and livestock farmers. It also conducts trainings for cattle farmers of Chitwan, Dhading and Tanahun in association with Practical Action.</div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-align: justify;">
	 </div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 22pt; color: rgb(0, 92, 169);">Sunrise to Invite&nbsp; Joint Venture</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 9pt;">S</span>unrise Bank Limited has decided to partner with an&nbsp;international bank. Moti Lal Dugar, Chairman of the Bank, said that the bank is talking with a well-known international bank for partnership. Dugar said that the partnership will be finalised soon. He opined it is better to invite foreign invest rather than merge with a national bank. So, the company is bringing in a strategic partner. He also revealed that the bank is soon launching international visa credit card. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.3pt;">&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-align: justify;">
	 </div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20pt; color: rgb(0, 92, 169);">Hyundai’s new brand Motto</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Hyundai Motor Company, the world’s fastest-growing automotive company by brand, officially announced its new brand direction and statement at the 2011 North American International Auto Show in Detroit. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The new brand statement “New Thinking. New Possibilities.” encompasses Hyundai’s new brand concept, “Modern Premium”, which aims to provide customers with emotional value and experiences beyond expectations, says the company. “It’s bigger, smarter and driven by the desire to share stylish, high quality and efficient vehicles with everyone” it says and adds: “New Thinking means challenging convention and pushing boundaries. And New Possibilities means coming up with more forward-thinking ideas and solutions. Hyundai’s new way of thinking is to share premium value with more people and make new possibilities for people and planet by constantly generating new ideas. It gives an opportunity to take a look at the new vision for the future of Hyundai.”</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Today, customers do not believe that expensive cars with unnecessary technology are premium. They no longer want to simply show off their status. Instead, they want their core needs fulfilled at an accessible price and with a car that exceeds their expectations; a car that reflects their values and the times in which they live. “Hyundai is not just a company that makes cars. Hyundai is a company that creates new possibilities. Our goal is not to be the biggest car company. Our goal is to be the most loved automotive company on the planet, and to be a trusted lifetime partner of our owners,” said Vice Chairman Chung, Hyundai Motor Company.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">In the most basic sense, a car is just a way to get from point A to B. But in reality, it is a place for much more - first dates, bonding time with the kids, quiet time alone. It’s a great place to store your gear, enjoy great music, spend a quick moment studying before an exam, or even take a nap or have a meal. “Hyundai’s goal is to create new values and a new culture that will upgrade the in-vehicle experience. Hyundai makes cars to enhance quality of people’s life’, says the company. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Nirakar Shrestha, MD of Laxmi InterContinental says: “With the global introduction of Hyundai Motor Company’s new brand statement “New Thinking. New Possibilities.”, we here at Laxmi InterContinental are pleased to implement the overall brand philosophy in Nepal. The new thinking of HMC relates to the new benefits that it will provide for its customers enjoyment. It seeks to provide additional values sought by society today (enabling more people to enjoy premium values at a fair price). HMC refers these new values as New Premium, Hyundai Premium, or Modern Premium. And Laxmi InterContinental is committed to deliver truly Hyundai Premium along with other services to its valued customers.”</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 22pt; color: rgb(0, 92, 169);">HYUNDAI Premiums in Nepal</span></div>
<div style="margin-bottom: 11.35pt; text-align: justify;">
	Laxmi InterContinental P. Ltd.; sole distributor of Hyundai for Nepal, revealed the new Sonata and Tucson recently.</div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 13.5pt;">Tucson</span></div>
<div style="margin-bottom: 11.35pt; text-align: justify;">
	First impression counts for a lot. Set eyes on the new Hyundai Tucson and we bet you’ll find your second and third glances are just as rewarding. Synthesis of flawless, cutting edge design, embodying style in every curve, sporty and powerful, yet, refined and relaxed. And when it comes to safety and security, the new Tucson is all equipped that gives you all the assurance you need and even beyond your expectation.</div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 13.5pt;">Sonata</span></div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.05pt;">Within seconds of getting acquainted with a Sonata, you will begin to wonder if it’s still today. The breath taking exterior design with rigid surface and structure that creates impression of constant, graceful motion. Inside, you will be surrounded by features capable of doing things that will transform your expectation of what a car can do. Indeed, everything about the Sonata - its sharp looks, next generation technology, and uncommon luxury and style - speaks uncannily of tomorrow.</span></div>',
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			'description' => 'Nimbus has conducted around 34 free trainings this year to 2,000 poultry farmers in different parts of Nepal. It has been conducting these trainings on a monthly basis and has covered..........',
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	(int) 14 => array(
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			'id' => '405',
			'article_category_id' => '50',
			'title' => 'Feedback July 2011',
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			'content' => '<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><span style="color: black;"><br />
	<strong>Reality’s Time Has Not Come Yet</strong> <br />
	<br />
	T</span><span style="color: black;">here is a certainly a mismatch between the housing options available and the demand for them in the Kathmandu valley and elsewhere in the country. By any standards, there are more people looking to own a house than the number of houses ready and being built for the prospective customers. But the real problem is high cost of the housing units and poor financing options available. As everybody is talking today, the banks and financial institutions have lent so much to the realty sector that the very existence of the banks and financial institutions has come under threat.<br />
	<br />
	At one of time, it was believed that some banks have exposure to the realty sector to the extent of 85 per cent. As experts will tell, recovering money from the realty sector is time-consuming and depends on many factors, especially financial and political stability in the country. Given the fragile economy and the informal nature of banking and finance in the country due to fluid political situation, it is hard to find buyers for apartments costing upwards of Rs 5 million. Owning an apartment is traditionally not the first choice of the people; they would prefer buying an independent unit. That's a fact.<br />
	<br />
	In line with trends outside, Nepal too has a number of realty companies ready with projects but most of them do not seem based on firm fundamentals.<br />
	<br />
	For example, the entire range of suburb within the Kathmandu valley in the three districts of Kathmandu, Bhaktapur and Lalitpur, there are any number of residential area being developed out of agricultural lands, by demolishing hills and moulds into plain land and by creating plots for independent housing. The cost to develop a property for a modern residential project is exorbitant and the companies are not finding enough buyers at the astronomical rates at which these plots are on sale. These plots were developed with the money of the banks and financial institutes but they now lie disused as there are fewer takers for them in view of a retarding economy. </span></span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div>
	<span style="font-size:12px;"><span style="line-height: 115%; color: black;">The property business in the country can take off only when the economy shows a constant growth over a period of 5 to 10 years at least. Expecting exciting moments in the realty business at this time is tantamount to wrong calculations.<br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><b>- Sanjay Neupane</b></span></div>
<div>
	<span style="font-size:12px;"><b><span style="line-height: 115%;">Bhaktapur</span></b></span></div>
<div>
	<span style="font-size:12px;"><b>&nbsp;<br />
	</b></span></div>
<div>
	<span style="font-size:12px;"><b>&nbsp;</b></span></div>
<hr />
<div style="margin-bottom: 0.0001pt; vertical-align: middle;">
	<strong><span style="font-size:12px;"><br />
	Kudos to &nbsp;Smart Telecom<br />
	<br />
	</span></strong></div>
<div style="text-indent: 0in;">
	<span style="font-size:12px;">The interview with Subhas Bajracharya, CEO, Smart Telecom Pvt Ltd, in June 2011 issue of New Business Age was quite informative and in-depth. The fact that Smart Telecom has already made its services available in 40 districts in the country is worth praising. It is not easy to create telecom infrastructure in the rural parts of our country because of difficult topography and poor road infrastructure. Smart Telecom has really shown commitment and a sense of purpose but by all counts its formidable presence in the rural telecom sector has not been complemented by the government. Telecom policy in the country is all about earning more revenues without any incentive for any worthwhile progress made by the telecom companies. Bajracharya should take heart and know that the investments that his company has made in terms of capital and commitment will win him the market share as well not only in existing markets but also in the new markets. But for all that he will have to wait for some time till the government comes out with a more plausible policy.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><b>- Pradeep Rimal</b></span></div>
<div>
	<span style="font-size:12px;"><b><span style="line-height: 115%;">Ghattekulo</span></b></span></div>
<div>
	<span style="font-size:12px;"><b>&nbsp;</b></span></div>
<div>
	<span style="font-size:12px;"><b>&nbsp;</b></span></div>
<hr />
<div style="text-indent: 0in;">
	<strong><span style="font-size:12px;"><br />
	For Higher FDI, &nbsp;Stronger GDP a Must<br />
	<br />
	</span></strong></div>
<div style="text-indent: 0in;">
	<span style="font-size:12px;">There is no denying the fact that the country needs more FDIs and that would come to the country in due course, that is when the political situation becomes normal and economy is firmly grounded.&nbsp;But for both, the country needs to stabilize itself first. And, some serious thinking has to be done as to how to increase the GDP from the current level to say some 10 times bigger in the short term. Only a robust GDP can attract FDIs. FDIs come seeking profit and if the economy is not in a position to return that profit, FDIs are known to have flown out of the country as well. In that case, it harms more than it benefits. Trade regime between Nepal-India and Nepal-China is a far cry from what the giant neighbours are witnessing. Nepali economy needs to be harmonized with the economies of its neighbours to reap the benefits of the gigantic progress being made by the two countries. That alone can guarantee a jump-start to both the economy and FDI inflow.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><b>- Sanatan Dhakal</b></span></div>
<div>
	<span style="font-size:12px;"><b><span style="line-height: 115%;">Koteshwor<br />
	<br />
	<br />
	<br />
	</span></b></span></div>',
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			'title' => 'Beyond The Budget 2011/12  August 2011',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">T</span><span style="font-size: 9.5pt;">he fiscal and monetary policies for FY 2011/12 made public in the third week of July have shown an appallingly anti-free market and anti-private sector tilt. The much touted about three-pillar concept that puts the government, cooperatives and the private sector at par is in itself an unfeasible proposition.</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">In a free-market economy, it is unfair on the part of the government to seek its share of the role in the market. At best, the government can be a facilitator. That means its role should be limited in introducing appropriate legislations, maintaining law and order and keeping surveillance to ensure a fair play in the market competition. That is in fact not a role of the government but its duty to be undertaken even to justify its very existence. An anti-free market argument suggest that the role of the government is essential at least to build large-scale infrastructures and to conduct economic diplomacy. But, squarely, it is the private sector tax that finances these activities, and the government is just a manager of it. If the private sector is exempted of all taxes in exchange of their contribution in building infrastructures too, one may not at all need the role of the government. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;"><img alt="fromtheeditor" border="1" height="315" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/ucpn.jpg" style="margin: 10px; padding: 10px;" vspace="10" width="400" /></span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;"><br />
	Moreover, the proposed budget (fiscal policy) plans to spend more as general expenditure (just to maintain the government) than what it plans to collect as taxes. Economic diplomacy has remained a rusted sword, unused ever since the debate began regarding its importance. For all these reasons, government's self-claimed role as one of the three pillars is thus a clumsy hyperbole.<br />
	<br />
	<br />
	There has been an extensive debate on recognising the cooperatives as an equal and parallel pillar. Apparently, the appropriate recognition it deserves is a sub-pillar under the private sector head. By all logic, effectively, there should be single pillar-economy led, invested, managed and operated by the private sector.</span><br />
	<br />
	<span style="font-size: 9.5pt;">But this policy has treated the private sector just contrary to this. The government has in fact done more harm by using its discretionary power to siphon away substantial amount of budget from development programmes to appease the Maoists. In this sense, the government role is becoming increasingly dangerous for the general people.<br />
	<br />
	<br />
	In comparison to the fiscal policy (budget), monetary policy has taken more balanced approach. For example, despite the announcement in the budget that saving and credit cooperatives would now on be supervised by the central bank, the monetary policy has chosen to remain silent on it.<br />
	<br />
	</span></div>
<div>
	<span style="font-size: 9.5pt; line-height: 115%;"><br />
	&nbsp;As the fact of the matter, both fiscal and monetary policies have come as mere rituals. The present day problems of the economy perhaps are beyond the jurisdiction and capacity of the realms of these policies. Therefore, to reviewing the economy from the present slump the leadership should first address the challenges of non-monetary and non-fiscal nature, but have direct bearings to the economic growth and prosperity of the country. <br />
	<br />
	<br />
	</span></div>',
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			'title' => 'Budget As The Booster (august 2011)',
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			'content' => '<div style="text-indent: 0in;">
	<span style="color: rgb(178, 34, 34);"><em><span style="font-size: 10pt;"><img align="left" alt="stocktaking" border="1" height="127" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/bikram(2).jpg" style="width: 103px; height: 127px;margin:10px;padding:10px;" vspace="5" width="103" />By Bikram Chitrakar</span></em></span><br />
	<br />
	<strong><span style="font-size: 18px;"><span>Market still waiting for the breach of 380<br />
	<br />
	</span></span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 10pt;">(Nepal Stock Market Review for 26 June to 24 July, 2011)</span><span style="font-size: 10.5pt;"> D</span><span style="font-size: 9.5pt;">espite moving more than 18 points up during 26 June-24 July period settling at 329, Nepal's stock market is still in an indecisive stage. Technical analysis indicates that Nepse Index should cross 380 mark before the investors can be confident to commit good money in the bourse. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The major influencing factor of the review period was the government budget for the fiscal year 2011-12. This is the first time since the Constituent Assembly election of 2008 that the government budget was announced in time, i.e. before the fiscal year started. As a result, the planned government expenditure is expected to be spent this year which will help ease the liquidity crunch in the banking system and boost economic activities around these expenditures. Moreover, the budget has also announced some direct measures that are expected to boost the market. One major announcement was the reduction in the capital gains tax in share investment from 15 percent to 10 percent for institutional investors and from 10 to five percent for the individual investors. Also announced was relaxation in the deadline for the merger of banks and financial institutions by one more year till mid-November 2012. Banks that notify the authorities by that time that they have decided to merge will get a number of concessions including the tax as was announced in the last <br />
	year's budget.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;"><img align="right" alt="stocktaking" border="1" height="310" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock data august 2011.jpg" style="margin:10px;padding:10px;" vspace="5" width="400" />Therefore, the benchmark Nepse index started moving up even before the budget was announced and gained 18.66 points or 5.11% during the review month to settle at 365.43. The highest point during the month was on 20 July at 380.23 and lowest on 27 June <br />
	at 329.49.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Even a couple of days before the budget announcement, the Central Bank relaxed its strictures on loans to the real estate and housing sectors as well as on loans against the security of publicly traded share certificates. Similarly, the market is hoping for the banks and financial institutions to announce healthy financial positions when they make public their fourth quarterly financial reports. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Bulk trading of Friday, 15 July gained a proportion of a scandal of a sort as Friday is fixed for odd lots (smaller than 10 units of shares) transaction only.&nbsp;That bulk transaction distorted the NEPSE index on following Sunday, but Nepal Stock Exchange says that anomaly was fixed immediately. Securities Board has been asking the Stock Exchange to explain the discrepancy. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">During the review period Securities Board of Nepal (SEBON) announced programs for coming fiscal year including <img align="left" alt="stocktaking" border="1" height="281" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock data1 august 2011.jpg" style="width: 415px; height: 281px;margin:10px;padding:10px;" vspace="5" width="415" />Central Depository System, Credit Rating Agency and Mutual Funds. Likewise Monetary Policy for the year 2068/69 was released on 21 July affirming the pre-budget and budget announcements. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 8pt;">Performance by Sector<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Commercial banking sector was dominating the volume of trade in Nepal Stock Exchange also during this review month. This sector accelerated 27.23 points or 8.08% to close at 365.43. Manufacturing sector gained hefty 50.44 points to reach 587.34 while hydropower sector moved up 19.57 points to rest at 608.36.&nbsp;Others sector surged by 15.27 points along with 9.04 points up in hotel sector to reach 487.61 and 408.07 respectively. However insurance sub-index skidded 17.26 points or 4.15% to rest at 415.81. Development bank lost 0.05 points or 0.02% to <br />
	close at 296.4. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;"><img align="right" alt="stocktaking" border="1" height="299" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock data2 august 2011.jpg" style="margin:10px;padding:10px;" vspace="5" width="400" />Sensitive index that measured the performance of 117 blue chips scrip went up 4.08 points or 4.54% to 89.85 while the float index calculated on the basis of real transaction increased 1.62 points to 31.07. Total of Rs. 1689316916 was realized during review period from 4457556 units of share trade via 19340 transactions.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The accompanying figure illustrates the sector wise distribution based on the total volume of trade. As usual commercial bank sector covered the highest volume holding 46.69% of total trade followed by manufacturing and processing sector (43.57%). Hydropower sector occupied 3.62% and development bank sector 2.68% while other sectors made up for the rest. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Technically, Simple Moving Average (SMA) is performing higher in the short term as Nepse index is higher than 30 days SMA forming M pattern which may result into correction. In the long run it is still weak. Only breaching the level of 380 will create some acceleration.<br />
	<br />
	</span></div>
<div>
	<i><span style="font-size: 9.5pt; line-height: 115%;">(Chitrakar is a Stock Analyst with Jamb Technologies Pvt Ltd.)</span></i></div>',
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			'article_category_id' => '47',
			'title' => 'A Diamond Merchant Via Hong Kong',
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			'content' => '<div align="center" style="margin-bottom: 0.0001pt; text-align: center; line-height: 120%; vertical-align: middle;">
	<span style="font-size:12px;"><img align="left" alt="dimnond" border="1" height="310" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ramesh.jpg" style="width: 319px; height: 310px;margin:10px;padding:10px;" vspace="5" width="319" /></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 12px;"><b><span style="line-height: 120%;">Ramesh Maharjan</span></b></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle;">
	<span style="font-size:12px;"><span style="line-height: 120%;">Chairman</span></span></div>
<div>
	<span style="font-size:12px;"><strong><span style="line-height: 115%;">R B Diamond Jewellers<br />
	<br />
	<br />
	</span></strong></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Born in a farmers family, Ramesh Maharjan is known as a successful entrepreneur who has taken his business to international levels. His jewellery business has expanded to USA. Today, he is Chairman of Maharjan Group that owns five companies - Nepal Diamond Company, RB Diamond Jewellers, Nenergy International, NB Nepal Builders and Maya Foundation. These companies are active in manufacturing, export and retail business of diamond jewelleries, energy, construction and even social welfare.</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">He has three jewellery stores in USA. He has recently diversified his business through the Maharjan Group that he established some years ago. R B Diamond Jewellers is the manufacturer, wholesaler and exporter of diamond jewelleries while Nepal Diamond Company deals in diamond and gold. Nenergy International is working in the area of developing hydroelectricity. Similarly, his company NB Nepal Builders is into the housing sector while through Maya Foundation he is involved in&nbsp;welfare of differently-abled people. Likewise, Maharjan is also Chairman of Nepal Gems and Jewellery Association and is associated with various organisations and associations.</span></div>
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	<span style="font-size:12px;">Maharjan's childhood was largely spent in the agricultural milieu. His parents were farmers in Lalitpur but they had a sense that their children must go to school and get education. He passed his School Leaving Certificate from Namuna Machhindra School at Lagankhel. He passed Intermediate from Patan Campus. However, he did not take his education further.</span></div>
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	<span style="font-size:12px;">Maharjan and his family did not see their farm leading them anywhere. “I did not see any future there,he says. Since my childhood I thought of doing things differently and in the best possible way.Maharjan says business was sitting deeply in his mind. He was concentrating on agriculture thinking he will land a good job some day.&nbsp;Apart from his works in the field, he was active in the local clubs, libraries, and in the locality and even won a local election. At times, he thought of going for foreign employment as well.</span></div>
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	<span style="font-size:12px;">His young romantic days were going on. Then, his family insisted him to get married. Though young Maharjan was determined to make his dreams come true before tying the nuptial knot, he surrendered to his family and married Sarita Maharjan with whom he was in love. Sarita turned out to be his lady luck. At that time, he was just 18. Sarita's family was in Hong Kong. Maharjan's in-laws invited him to Hong Kong as they thought there is not much scope in the country. Then, he took a job in Hong Kong at a wholesale company of diamonds as a helper.</span></div>
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	<span style="font-size:12px;">He proved his honesty and won the confidence of the bosses. So, he was gradually given more tasks of messenger and even handling banking transactions. They even tested my greed and left thousands of dollars in open drawers when I was the only person in the office. Next morning, they used to cross-check. I never thought of betraying them but was dedicated to perform well to get more salary in a legitimate way, he narrates how he passed the tests.</span></div>
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<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Working for the whole day had a benefit that he never felt homesick. He claims he worked from 5 am to midnight so that he can sleep quietly at night and does not have to miss his family back home. He was always conscious and determined that one day he has to return to Nepal. While in Hong Kong, he developed the interest in diamonds and also thought of taking something back. Then, he requested his employer to get him some training so that he can learn about diamonds. He says, My boss was a friendly person and he used to help us with everything as he understood we the foreigners will return if we were not given proper facilities. He was also happy to see my eagerness developing for diamonds and arranged for a basic training from the very next day. After completing his works in the office, he would go for training from 9 pm to 11 pm. </span></div>
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	<span style="font-size:12px;"><img align="left" alt="diamond" border="1" height="238" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ramesh1.jpg" style="margin:10px;padding:10px;" vspace="5" width="350" /></span></div>
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	<span style="font-size: 12px;"><br />
	Maharjan shares, I acquired basic knowledge on types, grading and assorting diamonds. Then, I requested my employers for further trainings. Later, he was sent to Mumbai for a six-month training at the company's factory for cutting, grading and polishing. I was there just to gain knowledge on diamonds. So, I did not even cross the railway station and kept myself fully focussed on my training. In the beginning, I felt quite uncomfortable as I did not even know how to hold a diamond properly. Gradually, I learned everything, he recalls. </span></div>
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<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">There too he spent the whole day pondering over the diamonds. He claims he grabbed things quickly and could separate colours within two weeks. As he learnt things he also started working there though he was not being paid. At the end of six months training, he was found to be performing&nbsp;well like veterans of the industry, he claims. When he returned to Hong Kong, the company's views about him changed. He was promoted to sales department. However, he did not stop learning while on the job. He says, For a couple of years more, I learnt from the market on pricing and quality and even on the ways of marketing.</span></div>
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	<span style="font-size:12px;">After staying for around seven years in Hong Kong, he decided to return to the country as the family also asked him to do so. When he returned, he was not alone. He had knowledge, skills and even money to invest in the business of his own. For three months, he carried out a kind of market survey, leaving no jewellery shops unvisited. In three months, he found expertise missing from the sector in his country. The way of working was not appropriate either. Then, I felt in markets like Nepal, such valuable things can only be sold with a guarantee and not as use-and-throw item, he says.<br />
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<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">He sees a lot of artisans and craftsmen&nbsp;here but their ways of working worry&nbsp;him. Maharjan believes that best masterpieces can be created in Nepal itself, which will have the potential to be sold anywhere in the world. I encourage people in this business to create fusion of our traditional knowledge with the modernity, he says. He does not see any competition in the field of creativity.</span></div>
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	<span style="font-size:12px;">Maharjan has always prioritised doing something new than simply following what others are doing in the crowd. That is the mantra to be on the top, he believes. Then, he initiated manufacturing in a professional manner as he was not satisfied with the quality of locally-made jewelleries.</span></div>
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<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">For Maharjan, business is more than profit and margins. He believes jewellery business cannot sustain without goodwill and trust. He describes, Customers must be assured that they will get back cash upon returning the products. My target is to do marketing through quality rather than advertisements. Maybe, that is why he claims that he has never advertised his jewellery store or even kept a billboard with the showroom's name. He claims he gets customers through trust and goodwill gained by selling quality products.</span></div>
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	<span style="font-size:12px;">Maharjan sees the jewellery market growing in the last four years with a definite change in lifestyle of people in Nepal. In the past, only head of the family used to earn but now everyone makes some earnings. They can afford what they desire for. Rather than copying others, now people want something unique to look different,he explains. He adds that it is Nepali culture to invest in jewelleries and houses as&nbsp;assets rather than luxury.</span></div>
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	<span style="font-size:12px;">Maharjan says he is very much satisfied with what he is doing. His business philosophy based on service rather than just selling precious metals has grown multinational. He has stores at Manhattan Fifth Avenue, Alaska and a distribution point in Los Angeles. In 2005 the first store was opened in USA on his wife's insistence. Now, Maharjan's in-laws are looking after the stores there. We wanted to see how it works outside and we had that confidence too. We were overwhelmed by the response of people when we put up a stall for the first time at a programme organised by Nepalis in America,he proudly shares. He claims he sold jewelleries worth US$ 10 thousand within half an hour. Then, the first store in Manhattan was opened with the help of the company where he worked in Hong Kong. He says he still has good relations with the company, where he learnt the tricks of the trade. Now, the major export destination of finished diamond products from Nepal is the US itself and these products are exported through R B Diamond Jewellers.</span></div>
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	<span style="font-size:12px;">Under his group, more than 150 employees are working. Maharjan claims that he treats them as his family. “It depends on them where the company will head for. I believe good people should prosper and succeed. I take care of their comfort and satisfaction,he shares his ways of motivating staff. He says problems are sorted out by discussing them. He has also given them assurance that they don't have to worry about their family's health and education. Maharjan also claims that he can't bear the sad faces of employees and cares that they don't get hurt.</span></div>
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	<span style="font-size:12px;">He is planning to expand his business further to handicraft. Maharjan's aim has always been to promote the local knowledge and craftsmanship. In his free time, Maharjan concentrates on the designs and obtaining more knowledge in the stones. He is currently busy designing for the 2012 collections. He says he can ponder over a stone for hours. Apart from that, he also likes to read spiritual books and contemplate on spiritual aspects of life. Maharjan says he is content with what he has got and does not think much about himself and his luxurious wish list. Even during leisure he plans about his companies. He says his family has always been with him even in the business so he feels lucky that he does not have to fight over managing time.</span></div>
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	<span style="font-size:12px;">Maharjan goes back to past, I used to feel that I don't have any vision. From my seniors, I learnt a lot about life and even doing business. I am here all because of such guiding hands and suggestions. He also has the hope that his second generation will take his business further. He expects their education, energy and his experiences to lead the business in future.</span></div>
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	<span style="font-size:12px;"><span style="line-height: 115%;">The 47 year old Maharjan is planning about making a foray into the handicraft business. Apart from that, he is also looking forward to expanding outlets all over the US. <br />
	<br />
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	</span></span></div>',
			'published' => true,
			'created' => '2011-09-06',
			'modified' => '2012-09-17',
			'keywords' => '',
			'description' => 'Born in a farmers family, Ramesh Maharjan is known as a successful entrepreneur who has taken his business to international levels. His jewellery business has expanded......',
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		'Article' => array(
			'id' => '416',
			'article_category_id' => '46',
			'title' => 'Joseph Massey',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size:14px;"><strong>Interview : August 2011 - 'Second Phase Of Growth Would Depend On Developed Capital Market'</strong></span></p>
<p>
	<span style="font-size:14px;"><strong><br />
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<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><img align="left" alt="" border="1" height="200" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/int1.jpg" style="margin:10px; padding:10px;" vspace="5" width="120" />Joseph Massey is Chairman of South Asian Federation of Exchanges (SAFE), a forum of exchanges with 32 members from South Asian Region, UAE and Mauritius. SAFE works for the development of capital markets in the region and offers itself as a platform to these exchanges for global integration. Massey is also the Managing Director and CEO of MCX-SX, which currently offers currency derivatives trading and is the most recent entrant to India's public-trading exchanges. He has over 18 years of experience in the corporate and financial arena and worked with organisations like Life Insurance Corporation of India, the Reserve Bank of India (RBI), Stock Holding Corporation of India, Multi Commodity Exchange of India Ltd, Interconnected Stock Exchange of India and the Vadodara Stock Exchange. Massey was in Nepal during the executive committee meeting of the SAFE from July 6 to 8. In an interview with Gaurav Aryal of <i>New Business Age</i>, Massey shared his views on capital markets of South Asia and the current status of the Nepali share market. Excerpts:</span></span></div>
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<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>What is the scope for growth of secondary markets in South Asian countries?<br />
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	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">I think, post-global crisis, this region is emerging as a high growth region because of the natural demand that it has got and also the governments are very keen to develop each sector so that more employment is created and global investors are willing to come and actually invest. If you look from a capital market perspective, there is demand both from primary and secondary markets. Whichever country you take in the SAARC region, it still has to make tremendously large progress in terms of domestic penetration. That market is huge. Then, we have another opportunity which is in global market. I think all economies have very large opportunity to develop in the secondary market.</span></span></div>
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	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Except India, other countries in South Asia have not been able to develop much in this field. What is the problem you see?<br />
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<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">There are couple of prerequisites for the market to develop. Indian market has a history of 130/140 years. Over such a long period, we have developed the culture of investment. Despite that, we have penetrated the market relatively less. Indian market is&nbsp;more developed because we have more instruments, more investors, more companies, good infrastructure, clearing corporations, guaranteed good regulation, and infrastructure which is comparable to the best in the world. However, there are many products that we still don't have and now India is aspiring to create those products. India has progressed but it still has a lot to do. Rest of the countries, based on their position in the cycle of economic development, could have reached some level of development in the exchanges. We expect that to happen over a period of time. When global fund comes to one region or one country, visibility of the entire region gets enhanced. Today, you see a lot of funds coming to India. Soon those companies will come and set up their companies in India. Once they set up their companies and invest there, they will also gradually look for what market opportunities are there in the region. India is gradually opening up and Indian citizens can invest outside. Once we open up the market more, a lot of investment from global market will come to India and from there they will go to the other countries of the region. I think the level of development depends on the scale of economy and how much it has developed. But it need not necessarily take the same length of time for each country to reach the same stage of development. We can cut short the time by learning from other's experience. Highlight</span></span></div>
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	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Foreign institutional investors and foreign direct investors are still hesitant to enter this region whereas they are going to Taiwan, Singapore etc. Why so?<br />
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<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">These countries have been rapidly growing for a very long time. So, the global communities have already identified those destinations. As a result, in&nbsp;the last 20/30 years, their regulatory system and infrastructure have developed so much that the global investors don't see a difference between these countries and their home markets. In SAARC region, some countries have progressed well while others have not. But we all know the model that we have to implement. We just need a more concentrated effort in finding out what are the gaps; what they have and what we don't have. And, we can put regulation and infrastructure in place. The domestic demand being so large, we will see the same level of capital coming in this region eventually. Today, we are not there but we need not take another 30 years to reach there. We can reach there in next five years.</span></span></div>
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	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>What is the objective of creatig a South Asian network of stock exchanges?<br />
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	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">I think we are all determined to do this. We understand each country has its regulatory mechanism and its own capital account laws. But we want to sensitise the countries that economies of scale will be realised if this region can work as one unit. Relatively, hard infrastructures like road, transport and others may take time to be developed. Financial market is soft infrastructure which can happen easily. The secondary and tertiary gains of developing an efficient financial market are very large compared to manufacturing and few primary sectors. So, instead of developing the manufacturing sector first and then going to the financial services, it would be a good idea that in this region we shift focus to financial services and the advantage of financial services trickle down to the rest of the economy. Our cost of fund will reduce and we will be able to raise more funds for developing infrastructure, for economic activity and as a result all benefits will flow such as more jobs, better education and necessary infrastructure. So, more capital gets attracted and suddenly we will get out of the vicious cycle. Today, we are in a vicious cycle of low capital, low infrastructure and therefore, low investment. All countries can't achieve the same level of infrastructure simultaneously, but when some of them achieve a level, the trickle-down benefit will happen to the entire region.</span></span></div>
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	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Protection of small investors in capital markets is taken as a major challenge. How can such network protect the&nbsp;investors?<br />
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<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">At SAFE, we have identified the global best practices. Each country has adopted these global best practices which are prescribed by IOSCO (International Organisation of Securities Commissions). What SAFE does is that the good practices of one country are shared with others. We don't wait for those countries to learn these things over a period of time. We are sharing these experiences with each other so, until real business can get done, we can share a lot of knowhow and ensure that the level of knowledge of each one is the same.</span></span></div>
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<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Why are South Asian governments hesitant in opening their markets for international investment?<br />
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<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">We are saying that we need to have investor protection. So, should we open the market or not? The first level of investor protection is that you have better infrastructure for trade, better laws, and more capital to protect them. All these things can come if you have a market of significant size. We want the best protection to be given to the domestic investors. But we cannot provide that as our markets are very narrow, we don't have all the products, we don't have large number of investors, our trading volume is small and the number of companies is low. You know that the total income from such market will be naturally very less. So, we need to invest more in increasing the capital, improving law and, giving the investor better safety. If you widen the investor base then obviously it will generate more resources. You will be able to draw more resources into the infrastructure, set up a clearing corporation, depository, have best tools and educate your people better. So, you need the capital market to be very efficient. Today, each country has domestic investors but they are very few. We need institutional investors who can bring in big money and take a deeper and longer view. So, once we complete this, we have to complete the market by getting good quality investors by offering all the products available today in the global markets. Once you create these two, your protection will improve; your market will become safe because your market is aligned to global market. If the investors are investing in the growth of Nepal, you get a diversified base of investors in which some are taking a view with 10 years, some with five years, and some with just one year or less. When you get the mix of all of them, your market will be stable. Some may go out but many others will stay.&nbsp;</span></span></div>
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<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>How do you see the future of capital market in this region?<br />
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<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">I think there are three or four facts which indicate that the future of capital market is enormously good. All the countries in this region more or less have the same level of development. They are developing and gradually going up the scale. In the initial phases, all of them are dominated by the public sector enterprises. Public sector enterprises naturally have the challenge of resources. Since the demand of economy is very large, there is a requirement of private capital and private production in order to supply that requirement which the public sector will not be able to deliver. The public sector has reached its level and now the private sector has to come up. It has to come up in infrastructure, education, manufacturing, services and everywhere. For developing all these, the people need risk capital. The risk capital can only come from the capital market. So, I think one is dependent on other. If you have a robust capital market, more people will be able to raise capital and set up an economic enterprise which will create more jobs and more business ventures. It is a cycle. Every economy has realised that we have gone through the stage where the public sector was dominant and&nbsp;banks had a major role to play. Second phase of growth is going to be dependent on developed capital market that should have equity, bond, derivative, service management etc. so that people can raise short term money and long term money. Then, we will see private enterprises start coming in. </span></span></div>
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	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Experiences have shown that the derivative trade has distorted the natural growth of the market. Can South Asia region avoid such distortion?<br />
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	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><img align="right" alt="inteview" border="1" height="287" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/int.jpg" style="margin:5px;padding:5px;" vspace="5" width="400" />SAFE is advocating an exchange traded market where derivatives get traded on the exchanges. They are safe because the counterparty has a guarantee from a clearing corporation. They are better risk-managed, more tightly regulated, and more transparent. As a result, exchange traded market is always a safe market. In 2008 and in the earlier 1998 crisis, what went wrong was outside the exchanges. So, the lesson from the 2008 crisis is that&nbsp;we should get more and more products on the exchanges. Second lesson is we can have laws which are similar all over the world. So, G20 is now advocating that we should have such norms and regulation that are similar in all countries. The advantage SAARC region has is that we don't have to make the same errors some other countries have made. We now already have better regulation on banking system and in the securities market, we have all the institutions developed, most countries have depository, clearing corporations and most countries now trade on electronic system. Having built an infrastructure that is similar to global environment and global rules that are gradually becoming common, I think we are operating on a much safer market.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Many prominent stock exchanges like those in Europe and Japan have either crashed or remained stagnant for a long&nbsp;time now. Is it so because those economies have reached the point of saturation?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">Post-2008, two things have happened. While the exchange traded markets are same, their economy is slowing down and the financial system has observed a very large amount of loss. It will take a long time for them to come out of these losses that they have suffered outside the exchanges. Secondly, those economies are diversifying to come back to high growth phase. In doing so they are investing outside the country. You can't increase the economic growth significantly if the economy is already developed. So, they will only have to look at investing and business opportunities in rest of the world. The good news is while Europe and the US are slowing down, Asia and Africa are&nbsp;growing. If you look at world growth perspective, today there is more demand than it was before. According to a recent news, Boeing is supplying US$ 30 billion worth of planes but all these planes are going outside US. The world economic structure is changing. There is more demand outside Europe and US. And the world community is happy. It does not matter whether I sell my planes in US or outside US. In this process, companies benefit, the society where they work benefits, overall the whole world benefits. So, until the global market continues to be on a growth stage, I think it is a good news and more and more of this will continue to happen. Today, we are living in the era when the world market has more or less started looking similar or at least it has aspirations to look similar. So, we are getting into more openness, more transparency, similar regulation, more international trade. The growth of one will cause growth in other. I think the world economy will continue to grow, especially these emerging economies and developing countries will continue to grow for next 30/40 years and it is good news to the rest of the world.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Do you see the possibility of instruments and mechanism like regional mutual funds in South Asia to invest in the share market?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">One of the discussions that we had both with the SAARC secretariat and the central bank here was in this very line. We should try and create some kind of regional hub in which we could have institutions which are not only taking domestic view but are taking the regional view. It could be regional investors, regional mutual funds and exchanges with cross border trading. It will depend on how much time it will take for each regulator and each country to digest that. But I think in the foreseeable future, in next two to three years time some of these concepts will actually become a reality.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Now, the commodities future trade is also booming in the region. And they seem to have posed sort of regulatory challenge. In Nepal such market is blamed to have facilitated capital flight. How is your view? <br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">Commodities markets are markets for risk management. Secondly, they are market for giving price signals of what is expected to happen in future so that policy makers can take policy measures three months or six months in advance. Third, the physical market for commodities lack transparency, they are fragmented. To give a common view to the rest of the world on what is happening in this market, whether there is crisis building up or not you need to have an efficient futures market. An efficient futures market also brings an efficient physical market. I don't agree that commodities market cause flight of capital because it is essentially a market for risk management. People will not invest very large amount of money until they invest in the physical market. Futures contract should be for one, two or three months which is not a long-term investment. Typically, flight of capital takes place because of other natural economic indicators like high inflation, low growth of economy and interest rate structure. The domestic capital has to remain here and does not have an option. But if it is global capital, it goes to the most efficient market which has high growth, low interest bearing and good opportunity for growth. Commodities markets are rational markets. These markets will look at the fundamental demand and supply. Based on the fundamental demand and supply, price recovery will take place. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">If someone is buying wheat, cotton or gold, that means the price of that commodity in the future can go up. But the price&nbsp;of a commodity futures contract will go up only if the physical commodity goes up. Physical gold is going up because someone is buying physical gold. They are too integrated together. Physical market demand and supply is dependent on actual consumption and actual supply. I don't think we should panic at the price fluctuation in the commodities exchanges. However, if we can have&nbsp;regulatory system, more transparent system, better safeguard on exchange, clearing corporation it will eb better because then some of these worries&nbsp;will go away. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Of late, the share market index as well as confidence of investors has remained low in Nepal. How can these be bolstered up ?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">There are no shortcuts to it. When an economy is going through a low cycle and if you only have domestic market, the entire country has one view. You don’t have a contrary view from anyone else because you only have individual retail investors. Their appetite to take a long term call is very minimal. So, when your market is going through slowdown, the individual investors will be more scared so they will also take a view which is not more than a day. Now, you need someone who can take a view which is for one month, one year or five years. This can only be done by institutional investors. So, it is paramount that Nepal tries and builds up domestic institutional investor community so you can put mutual funds in place. I don't know how your pension industry is, but I can be pretty sure that some of those funds will come and they will invest in the capital market. And insurance industry too can invest in capital market. This is level one. You now have a person who is willing to take a call which is a longer term. But still they are domestic and have a view which is not very diversified. If you can adjust global investors inside, you will have a view which is very different. They are willing to take a call which is much longer, in much larger quantum of money because now the stocks are available very cheap. Their cost of borrowing will be less. They can come and do large borrowing and as a result the market will grow up. So, in a market which goes to such a long term low cycle, the only way to break out of the cycle is by ensuring that institutional money both from domestic and global markets gets attracted to the country and I think you should do that.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	<br />
	</span></span></div>',
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			'description' => 'Joseph Massey is Chairman of South Asian Federation of Exchanges (SAFE), a forum of exchanges with 32 members from South Asian Region, UAE and Mauritius. SAFE works....',
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		'Article' => array(
			'id' => '415',
			'article_category_id' => '48',
			'title' => 'Nepal Can't Be Overpopulated (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle; text-align: justify;">
	<span style="font-size:12px;"><i><span style="line-height: 120%;"><img align="left" alt="madan" border="1" height="136" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/img(6).jpg" style="width: 112px; height: 136px;margin:10px;padding:10px;" vspace="5" width="112" />By Madan Lamsal</span></i></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(134, 55, 59); letter-spacing: -0.05pt;">E</span><span style="letter-spacing: -0.05pt;">ver since the Central Bureau of Statistics (CBS) started to make the findings of the national census public, people have started wondering whether Nepal is really overpopulated. People have started to ask the same question to several experts and not so experts, politicians and economists. And the answers that come about are very interesting.&nbsp;</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;">Some samples of the answers: Nepali Congress leaders say: Nepal is not overpopulated. The reason as furnished by a leftist politician is that, for capitalists like the Nepali Congres ,the bigger the population, the higher the voter base. So the population is less until the Congress gets enough votes to form the government.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;">If you ask a Hindu or a Muslim or a Christian fundamentalist, the answer is still no. Because, to religious leaders, the fear of being outnumbered by the other religion is persistent and they believe that Pashupatinath, Allah or Christ will come to feed any size of population.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.15pt;">But, an&nbsp;immigration officer is most likely to say yes, Nepal is overpopulated ! This is because he must be getting tired of processing thousands travel documents of youth going abroad everyday. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;">But the economists are unlikely to say either yes or no. They will only say: the moment a country has overpopulation, it will not be able to sustain any addition in the population. Some of them may even advise you to read Danish economist Ester Boserup who made strong case in support of population growth for the economic benefit of the country. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;"><img align="left" alt="madan" border="1" height="399" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/economy.jpg" style="margin:10px;padding:10px;" vspace="5" width="350" />Whatever the people of different background may say, It is futile to worry about the size of the population. Because, more people, more production, more money, more consumption, more profit to the companies and more revenue to the government and more donations to the political parties and opportunity for more extortions to the affiliates of political parties of different hues and colours. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;">Even with a population close to 30 million we have been able to feed ourselves. We don't need to worry about gainful employment here within the country, as overseas employment will be in abundance as long as Nepalis agree to work for the pay just enough to foot the travel bill and payback the loan gotten to fly abroad, after five years of work. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.15pt;">This means your country's income grows only when your people go abroad and send in money from there. That was so simple to understand for our forefathers who started the system of Lahure, i.e. sending people abroad (Lahore at that time) for earning. The same is being done today. And this should be expanded. This requires our population to increase further so that more people will go abroad and Nepal will earn more. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: 0.1pt;">Nepali economy is live and kicking just because of a growing population. Not only migrant workers, see it from every angle, the population growth is a must for economic growth. As more babies are born,&nbsp; the more diapers will be sold and there will be higher profits for such companies and a bigger pay rise to their&nbsp; employees.&nbsp;Therefore, clearly, the hue and cry of overpopulation in Nepal is an absolute anti-thesis to country's economic growth and people's well-being. </span></span></div>',
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			'modified' => '2012-09-16',
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			'description' => 'Ever since the Central Bureau of Statistics (CBS) started to make the findings of the national census public, people have started wondering whether Nepal is really........',
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	(int) 5 => array(
		'Article' => array(
			'id' => '414',
			'article_category_id' => '40',
			'title' => 'Demand And Supply (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The story of power position in Nepal is that of highest potential and lowest consumption. The electricity demand in Nepal is increasing by about 10 per cent every year and close to 40 per cent of the Nepali population has access to electricity through grid and off-grid systems. The main load centre is the central zone which includes the Kathmandu Valley. Nepal owns a number of hydropower plants with a total installed capacity of around 650 MW which includes several small and medium hydropower plants owned by Independent Power Procedures (IPP). A significant amount of energy is also supplied by thermal (Diesel) and solar photovoltaic power plants besides the micro hydro plants in hilly areas. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">There is a huge power demand-supply imbalance which is evident from load shedding implemented over the last several years now. At present, Nepal Electricity Authority (NEA) is supply -deficit. While the peak power demand in wet season is more or less met by the supply, the deficit during the dry season is very high resulting in power outage for as much as 16 hours a day in the capital itself. According to a forecast, the power misery due to supply-deficit is likely to continue till at least 2013-14, when, among others, Upper Tamakoshi (456 MW) is expected to be commissioned.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Constraints</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">There is no denying that lack of development of indigenous energy sources has resulted in an over-dependence on fuel import. This drains a significant portion of the nation’s foreign exchange earnings and poses threats to long-term energy security and to the environment. Pradhan reasons, “We can’t always depend on imported energy so we have to develop hydropower as it is the cheapest form of energy. There is no alternative to hydropower.”&nbsp;The government doles out billions of rupees to buy petroleum products when prices get higher whereas the subsidy given to other energy sources pale in comparison. There should be a level-playing field without any discrimination. “The state’s attitude is the major hindrance towards attracting private sector investment in renewable energy,” alleges Shrestha. He adds that the government should let petroleum products compete with other energy products instead of being biased towards it. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Another problem is that of major differences in opinion among the energy experts who don’t seem to agree on practically anything.&nbsp;A disagreement among experts also puts the government in a lot of difficulty. A common agenda for producing 3,000 MW is the need of the hour, probably leaving disagreements for the future.&nbsp;Shrestha explains, “I personally believe there are people in Nepal who have a lot of knowledge and an idea regarding the energy sector but disagreement takes precedence among them. My request to these experts is to first ensure a position where we can generate about 3,000 MW for basic need.”</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Potential</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Bio-gas potential is immense from the perspective of Nepal’s renewable energy sector. More than 250,000 bio-gas plants have been established so far mostly in remote areas where there is no electricity. A six cubic meter bio-gas plant can generate thermal energy equivalent to one standard LPG cylinder in about 24 days. In other words, bio-gas is providing 250,000 LPG cylinders worth of energy in Nepal. This is certainly an achievement that can be taken forward. Cow dung was used for operating bio-gas plants earlier, however, a lot of experimentation has led to a state where anything bio-degradable is equivalent to cow dung. Therefore, it is viable to increase the number of bio-gas plants in Nepal. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal receives ample solar radiation with approximately 300 days of sun a year. The development of solar energy is thus reasonably favourable in many parts of the country. As per a report by Alternative Energy Promotion Centre (AEPC) under the Solar &amp; Wind Energy Resource Assessment in Nepal (SWERA), the commercial potential of solar power for grid connection is 2,100 MW. Solar panels are a highly feasible option for families using minimum energy for lighting purposes and can be installed for Rs 3-4,000 per household. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">The third largest indigenous biomass source of energy in terms of consumption is agricultural residue in Nepal which directly comes from the agricultural crops. It is therefore indicative that more than two-thirds of the total energy requirement of the country can be supplied solely from agricultural residues while considering the heating value of the resources. More than 70 per cent of the waste coming out of big municipalities is bio-degradable. This can be processed at big bio-gas plants and used for generating energy rather than sending it to landfill areas. However, for this to happen, the waste has to get collected in a segregated manner by applying ways to sort bio-degradable waste right at the source. It requires discipline though to make the users dump ‘right waste’ in designated containers themselves. Shrestha cites the example of sewerage treatment as a serious practice in most cities of the advanced countries where water is drained back in the river afte</span><span style="letter-spacing: 0.35pt;">r taking out the energy and purifying it. He emphasises that waste management is absolutely crucial in the <br />
	present context. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The major impact of power outage is on industry as it needs 1,100 gigawatt hours (GWh) of energy for the industrial sector which is about 40 per cent of the total electricity produced by NEA. It has close to 1.77 million subscribers of which 1.2 million households consume minimum energy for lighting purposes. “If we could equip these households with 100W solar panels, we can easily save 500 GWh which can be diverted to industry,” Shrestha calculates. He adds that the government must take initiatives to this effect by providing tax relief and subsidy of some kind to the households and help the nation’s industries avert collapse. On the other hand, NEA won’t be affected adversely because the industries will be there to make up for its ‘apparent loss’.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal has over 6,300 rivers and rivulets and thousands of hills and valleys. The perennial nature of Nepali rivers and the steep gradient of the country’s topography provide ideal conditions for the development of some of the world’s largest hydroelectric projects. “If we could block the water in these valleys, we can conserve the rainwater and it can be a huge asset,” Pradhan advises. Hydropower could be the engine of growth for Nepal as it would offer opportunity to create employment, alleviate poverty and provide basic services including good governance. The development of this sector can be a potent contributor for transforming villages, cities and societies in Nepal into prosperous and inclusive economic zones. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Looking Forward</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal’s imports have increased by Rs 25 billion due to severe power cuts (Rs 12 billion-diesel, Rs 3 billion-electricity import, Rs 2 billion-battery, Rs 5 billion-inverters and generators, rest on other means of energy like candles etc). The country is already facing a trade deficit of Rs 300 billion, which makes it mandatory for Nepal to find measures towards minimising imports. Pradhan says foreign investment can come for the hydropower sector as it is the only area in Nepal for which investors don’t have an alternative. “The FDI for other sectors may get diverted to other countries due to various reasons such as low wages, security environment and tax free policies. However, in order to exploit the water resources of Karnali River, for example, they have to come to Nepal,” he elucidates.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Pradhan further recommends not to link water resources to nationalism. He elaborates, “Saudi Arabia makes oil available at the cheapest rates to its people and sells surplus oil for national development. We should also adopt this policy: </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The water unused today will go in waste; this is a time bound business.” He asserts hydropower is a sustainable source of energy for Nepal as well as for the region and has the potential to minimise imported energy. He says if Nepal can focus on water management, it can not only eradicate its domestic power woes but also play a regional and global role energy-wise. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Recent developments indicate that our focus will be on reducing load shedding in the next five years or so. “My observation is that energy crisis will continue in the next five years,” says Dr Shrestha. He adds the energy sector does not hold out a very bright future and will have many problems but Nepal can certainly make some valuable progress in attaining energy independence. He also warns experts and authorities against depending on a single energy source such as hydropower and instead asks them to work for an appropriate energy-mix. “We must determine our total energy-mix scenario over the next five, 10 or 20 years now,” he asserts.<br />
	<br />
	</span></span>
	<p class="newsubhead" style="margin-top: 0in;">
		<span style="font-size: 13.5pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">Power Projects Licenses </span></p>
	<p class="newsubhead" style="margin-top: 0in;">
		<span style="font-size: 8.5pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">(List updated June 03, 2011</span><span style="font-size: 10pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">)</span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Issued Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;Survey License for Generation (Below 1 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 202 projects = 149.769 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (1 to 25 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 220 projects = 1505.661 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (25 to 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 57 projects = 2966.68 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (Above 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 34 projects = 10854.12 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Construction License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 61 projects = 1385.806 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">List of Applications</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (Below 1 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 758 projects = 642.976 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (1 to 25 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 581 projects = 3932.34 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (25 to 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 69 projects = 3840.89 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; letter-spacing: -0.15pt;">Application for Survey License for Generation (Above 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 45 projects = 16798.72 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Survey License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 71 projects = 2596.117 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Construction License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 3 projects = 23.5 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">GON Reserved Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="margin-top: 7.45pt; text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">GON Reserved Survey License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 27 projects = 1627.699 MW</span></span></p>
	<p class="BODYTEXT" style="margin-top: 2.5pt; text-indent: 0in;">
		<span style="font-size: 14px;"><i><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Source</span></i><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">: Department of Electricity Development, Ministry of Energy</span><br />
		</span></p>
</div>',
			'published' => true,
			'created' => '2011-09-05',
			'modified' => '2011-09-05',
			'keywords' => '',
			'description' => 'The story of power position in Nepal is that of highest potential and lowest consumption. The electricity demand in Nepal is increasing by about 10 per cent every year and close to 40 per.....',
			'sortorder' => '329',
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	(int) 6 => array(
		'Article' => array(
			'id' => '413',
			'article_category_id' => '40',
			'title' => 'SHADOW OF ENERGY (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 8pt;">Despite immense potentials for electricity generation, Nepalis have to suffer long hours of power-cuts. This affects its industrial output as well, which in turn makes Nepal a less attractive destination for foreign investments. To come out of the current mess, experts offer many models but the problem is they donâte agree on which one to pursue in what degree. In this cover story, New Business Age unravels the industry and the roadblocks.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<b>&nbsp;</b></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 10.5pt; letter-spacing: -0.05pt;">N</span><span style="letter-spacing: -0.05pt;">epal's current energy situation is in dire straits, to say the least. Despite its potential to be a credible power producer even to the extent of exporting surplus energy, it has miserably failed at meeting its own domestic demand.&nbsp;A mammoth 68 per cent of our energy needs are met by exploiting forest resources which has resulted in reducing Nepal's forest area to a mere 30 per cent. If deforestation continues at the current rate, one should not be surprised if we have no forests to talk about in the next three to four decades. </span></div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">With increasing population, Nepal will not be able to fulfil its energy requirements if it depends so heavily on the declining forest resources. The consumption of petroleum products has grown incredibly over the past decade-and-a-half so much so that we spend more money on importing petroleum products than we earn by our total exports. “Nepal will have to take a World Bank loan in 2020 only to buy petrol fuel if its import continues unabated in the present manner and that will be a total disaster, says Dr Jagan Nath Shrestha, Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University.&nbsp;</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.05pt;">Nepal still does not have its own reserves of gas, coal or oil in economically significant quantity. Although its most significant energy resource is water, less than one per cent of hydropower potential is currently harnessed. Nepal is extremely lucky in terms of clean water over 225 billion cubic metres of water flows down its rivers every year which is approximately 20,000 litres of water per person per day. Even if Nepal was an aggressive agro-economic country, it would consume less than 5,000 litres per person per day. Looking at this surplus, Er Gyanendra Lal Pradhan, Executive Chairman of Hydro Solutions Pvt Ltd, says, “I see no reason why we should not exploit our water resources for meeting domestic water needs as well as exporting the daily per capita surplus of 15,000 litres of water.” </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.1pt;">It's no secret that Nepal's economic and social development is critically hampered by its inadequate energy supply. Moreover, developing and exporting surplus energy resources can help develop other sectors and enable the country to import other products that cannot be produced indigenously. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.05pt;">Energy Mix<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The total energy consumption of Nepal currently stands at over 10 million tonnes of oil equivalent (TOE). While close to 90 per cent energy is derived from traditional resources, the rest comes from commercial and renewable sources. Nepal’s electricity generation is dominated by hydropower and only one per cent energy need of the country is fulfilled by electricity. Bulk of the energy need is dominated by fuel wood (68 per cent), agricultural waste (15 per cent), animal dung (8 per cent) and imported fossil fuel (8 per cent). </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.05pt;">Energy Consumption<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Energy mismanagement has been plaguing the country for a long time now. It has become absolutely important to focus on energy resources that promise sustainable supply. “The total energy availability and the accessibility, impact and applicability of renewable energy are ever so growing because energy consumption of electronic devices has come down to from about 1/4th to 1/100th,” claims Dr Shrestha. He adds that people have to become conscious about and inculcate a habit of conserving energy. For example, every kilowatt hour (kWh) of energy saved is equivalent to one kWh generation. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The overall energy consumption in Nepal is largely dominated by the use of traditional and non-commercial forms of energy such as fuel wood, agricultural residues and animal waste. The remaining energy consumed comes through commercial sources such as petroleum fuels, coal and electricity and renewable sources. It would be worthwhile to mention here that the share of commercial sources in Nepal’s overall energy consumption has increased considerably in the last decade-and-a-half. The renewable energy consumption has been registering an annual growth of more than 15 per cent on an average. And, within the renewable energy system, solar energy consumption is increasing at a more-than-steady 200 per cent annually. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">A staggering 18 million metric tonne of forest timber is cut every year while experts say that the sustainable level is only half of it. There are 5.8 million households in Nepal but only 400,000 households use Improved Cooking Stoves (ICS). These households using fuel-efficient stoves save half the energy. Barring the urban areas where ICS cannot be brought to use, a good 3 million households in rural Nepal can benefit from this improved technology. If this endeavour could be pursued in a focused manner, the consumption of timber-for-fuel can come down to half i.e. 9 million metric tonne in the next three to five years. This could help the forests grow and make the forest usage more sustainable. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The new boundary of Traditional Energy Resources (TER) has extended beyond the territory of forestry. Biomass is the major source of energy, particularly in rural Nepal as availability of biomass resources for energy production exists in abundance. The new territory of bio-energy now encompasses agriculture, livestock, industry and human settlement sectors as well. However, the use of some traditional energy sources is neither sustainable nor desirable from environmental considerations.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">More than 300,000 households use solar electricity in Nepal whereas an average of four-five kWh per square metre per day of solar energy can be generated in Nepal. The solar dryers have extensive use in the rural areas for drying of agriculture products and food. Solar Cookers are being used to cook food which saves fuel and helps deforestation to slow down. For a large part of the rural population consuming low electrical energy, there is no viable alternative to solar electricity. Besides, solar electricity generating systems do not need fuel or extensive infrastructure and are easy and quick to install. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Water is plentiful in the rugged hills of Nepal and micro-hydro provides a more practical and cost effective alternative. An estimated 150,000 households benefit from the micro hydro sector in Nepal and it has greater potential to be a major source of energy in the rural areas. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The hydropower sector has made some progress indeed over the last five years or so. The private sector has come forward promising to develop 2,000 MW while the government has projects for 600 MW under construction and another 250 MW has been added recently. “We are certainly not late in identifying the sector’s immense potential but we must make it work now to ensure that we are not behind schedule in the future, Pradhan says on a cautious note. He adds, “This country will collapse if we don’t export hydropower in the near future because we have so much to import for which we need to pay through exports.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">However, the present situation is that Nepal has developed approximately 600 MW of hydropower only. Therefore, the bulk of the economically feasible generation has not been realized yet. Although bestowed with tremendous hydropower resources, only about 40 per cent of Nepal's population has access to electricity. Most of the power plants in Nepal are run-of-river type with energy available in excess of the country's demand during the monsoon season and deficit during the dry season.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Looking at the energy consumption pattern of the world, Nepal has one of the lowest energy consumption levels. An average of 15 gigajoule (GJ) per capita is the minimum that a country can think of. Out of this 15 GJ, most of the energy is spent on cooking and thermal applications. Dr Shrestha analyses the situation thus: Nepal's electricity consumption is probably one of the lowest in the world, hitting our economic activities hard. We are facing the consequences because of low production levels in this country.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The residential needs account for the major share of energy consumption (89.1 per cent), followed by transport (5.2 per cent), industry (3.3 per cent), commercial (1.3 per cent) and then the agricultural sector and others. Due to inadequate numbers of energy intensive industries, the industrial sector holds the third position in Nepal’s total energy consumption.<br />
	<br />
	<br />
	<br />
	</span></div>',
			'published' => true,
			'created' => '2011-09-05',
			'modified' => '2012-08-23',
			'keywords' => '',
			'description' => 'Despite immense potentials for electricity generation, Nepalis have to suffer long hours of power-cuts. This affects its industrial output as well, which in turn makes Nepal a less attractive destination for foreign.......',
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	(int) 7 => array(
		'Article' => array(
			'id' => '412',
			'article_category_id' => '40',
			'title' => 'Give Topmost Priority To Hydropower Development In Nepal’s Interest (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong>Er Gyanendra Lal Pradhan</strong>, a hydropower specialist-cum-entrepreneur is an electrical engineer by training. He is currently the Executive Chairman of Hydro Solutions Pvt Ltd. He is also the Executive Member of Independent Power Producers’ Association, Nepal (IPPAN), Federation of Nepalese Chambers of Commerce &amp; Industry (FNCCI) and SAARC Chamber of Commerce &amp; Industry, Nepal. Er Pradhan has initiated a number of successful projects and enterprises of varied scope and sizes in his 25 years of career. He has received the prestigious ‘Manager of The Year 2006’ award from Management Association Of Nepal (MAN) and ‘Excellence Award 2010 in Energy (Hydropower)’&nbsp;from Hydro Nepal-Journal of Water, Energy and Environment. He has also won several other recognitions for his contributions to hydropower and clean energy. He has visited over 100 hydro power plants of 1 KW to 18,600 MW capacity in over 20 countries. In an interview with <i>New Business Age</i>, Er Pradhan shared his views on hydropower sector in Nepal and what can make it a booming success in the country. Excerpts:</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">How do you assess the overall development of hydropower sector in the country in last couple of decades?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The private sector started investing in hydropower after 1990 following the liberal policy adopted by the government. But there was a lack of favourable work environment due to the decade-long insurgency in Nepal. Even for the period between 2000 and 2005, you could hardly brand this sector as lucrative. However, after 2005, well-to-do and influential people including politicians have been investing and maintaining shares in hydropower projects. Today, all political parties have hydropower development as the topmost agenda in their manifestos. Though we are not late in identifying the sector’s immense potential, we must make it work now. The private sector has come forward promising to develop 2,000 MW while the government has projects for 600 MW under construction. Another 250 MW has been added recently. So, we have been making some progress indeed over the last five years or so. But, like I said, it’s about time we gave topmost priority to hydropower development in Nepal’s interest. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Despite having vast water resources, why has Nepal not been able to exploit it to the maximum?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The earth’s surface area is dominated by water at 70.8 per cent but the proportion of clean or fresh water is three per cent only. From that perspective, we are extremely lucky to have 20,000 litres of clean water per person per day in Nepal. However, water mismanagement in our country has led to where we stand today. There is no water in the tap and no water for irrigation and electricity either. You must remember that water can never be regenerated. Projects such as the ones related to irrigation can never be sustainable because they do not have adequate output income. These need to be related to hydropower because the income generated from electricity can pay for such projects. If you look at the projects today, they sustain because revenue from electricity has helped make water available at affordable prices to farmers and the common people. Flood control, irrigation, fishery and electricity should go hand-in-hand wherever possible; there are many projects in Nepal which prove this point. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Have we become over-optimistic due to climate change? What does global warming mean to Nepal? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Yes, the nature provides us clean water through snow glaciers and the glacier melting is helping us provide water throughout the year. If global warming continues at the current level, it will adversely affect several parts of the world. We will have fewer glaciers of course but it will not affect Nepal much. We get rainwater in excess of 225 billion cubic meters so we are getting more rainwater than the water from the glaciers. Therefore, our water level has not receded overall. In fact, global warming has helped us have more clean water as we have been receiving greater rainfall during monsoon. A majority of Nepal’s cities and towns are situated at an elevation. Hence, they don’t fall in the flood-prone zone. We have over 6,300 rivers and rivulets and thousands of hills and valleys. If we could block the water in these valleys, we can conserve the rainwater and it can be a huge asset. Water is like oil (energy) for us, it’s a blessing for the hydropower sector. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">What is your analysis of the debate on power production for external versus internal consumption? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Without any doubt, the first need is that of domestic consumption. The current load-shedding problem may seem a big issue right now but it can definitely be dealt with over the next four years or so. In fact, we will also have surplus with us which we should look at exporting. This country will collapse if we don’t export hydropower in the near future because we have so much to import which we need to compensate with exports. For example, iron and steel is our most exportable item at over Rs 10 billion but the net saving is only 15 per cent as 85 percent money is spent on importing raw materials. On the other hand, if we could export hydropower for the same worth, 85 per cent of the money would stay in Nepal itself. There is huge value addition when it comes to hydropower. But if we can’t use the water today, we will have new water tomorrow and it continues in that manner. We are sending precious foreign currency abroad for importing petroleum because we are not exploiting our water resources.&nbsp;&nbsp; </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Talking about alternative energy, can it be adequate for household needs? Further, do you see it contributing to industrial growth in some way? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">To tell you the truth, solar energy generates only 12 MW in Nepal which can’t end load-shedding. Do you think solar energy can meet our current requirement of 2,500 MW? The solar sector was given subsidy which yielded practically no result. There would be 2,500 MW of sustainable hydropower if hydropower sector was granted the same amount of subsidy. We won’t need any battery and there would be no pollution either. However, I do agree that solar energy must exist for people living in high mountains for the sake of social justice as we cannot take electricity to those areas with the same ease as solar energy. Other alternative energy sources such as wind too cannot support any economic activity, leave alone industrialisation. There is a potential for wind energy in Mustang and Kali Gandaki corridors but why would you generate wind at Rs 10 per unit when you can do the same at Rs 5 per unit from water flowing below these very corridors. Besides, you have to invest heavily to create necessary infrastructure on top of the mountains. Saudi Arabia gets so much of sunlight but it has no solar energy. It doesn’t have to look elsewhere because of its abundant oil resources. Similarly, we have hydropower in Nepal so we must focus on developing it instead of looking at the so-called alternatives that are not cost-effective at all. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">The government has increased 20 per cent on PPA rates but you don’t seem to be satisfied. What is your idea of a good deal?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">I will give you the numbers. Let me tell you that rates cannot be negotiated behind closed doors. Only a few Nepali companies can build projects upward of 25 MW individually because the high degree of technical and financial capacity required for building such projects may not be at the disposal of most companies. More than 95 per cent of the projects being built by Nepali entrepreneurs are below 25 MW capacities. These projects would produce power at only Rs 5.45 per unit for a 30-year average while 25 MW and above projects are built at a lesser cost and can generate power at Rs 7.50 per unit for the same period. Even the projects promoted by Nepal Electricity Authority (NEA) staff have been promised Rs 5.54 per unit. From a distance, it seems that 20 per cent has been increased on existing PPA rates for private sector investors. However, escalation has been brought down to five years from the earlier nine years. So, in effect, the net increase will come to 10 per cent only. After the increase, the rate has barely managed to reach Rs 6 per unit which is a discriminatory practice being pursued by the state. The so-called increase of 20 per cent for private sector investors is an illusion. We are not even asking for a rate of Rs 7.50 per unit. We are confident in our belief that if we are given Rs 6.50 per unit, besides being a rupee cheaper, some more projects may want to invest in this crucial sector.&nbsp;</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Despite all the fuss, private sector investment is not coming forth for hydropower development. Why so?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Well, nobody invests in a business to make losses and hydropower is no exception. The prospects must be commercially viable for any investment to come in. Further, the banks have invested a whopping 70 per cent of the total money involved in hydropower. If they have to additionally invest crores of rupees every year for infeasible projects, they are not going to finance. Therefore, no private sector project is going to invest willingly given the current situation barring a couple of projects who may invest to honour license validity. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">The government has proposed to establish a separate bank for hydropower development. Do you endorse the idea? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">We have given the government a figure of 2,500 MW to end load-shedding. We need an investment of US$ 5 billion for this. So, over the next four-and-a-half years, we will require Rs 350 billion. It is only possible if we use half the amount in the banking system of Nepal which has a total of Rs 700 billion. Given this situation, the state has to bring foreign investment as it is difficult for the private sector to do so. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">It is good to open a bank but do we really need one? It is better to have a fund manager. We have a few failed examples from the past – the state floated Agricultural Development Bank which has failed to increase agricultural production in the country. Today, the farmers take the most expensive loans from this bank at a monstrous 18 per cent. Nepal Industrial Development Corporation (NIDC) promised to boost industrialisation but now all the money has gone down the drain in the industry sector. Going by these examples, what is the logic in opening ‘another bank’? c by getting funds from abroad at 1.75 per cent and give it to commercial banks, both state-owned and private sector, and ask them to invest in certain sectors. For example, they can give it to the banks at 5 per cent and ask them to invest it at 8 per cent. It will solve the problem of interest lending and fulfill fund requirement as well. The state should manage fund and monitor it accordingly instead of opening a bank and turning it into a business proposition. </span></span></div>',
			'published' => true,
			'created' => '2011-09-05',
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			'keywords' => '',
			'description' => 'Er Gyanendra Lal Pradhan, a hydropower specialist-cum-entrepreneur is an electrical engineer by training. He is currently the Executive Chairman of Hydro Solutions Pvt Ltd. He is also the.............',
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		'Article' => array(
			'id' => '411',
			'article_category_id' => '40',
			'title' => ''The Accessibility, Impact And Applicability Of Renewable Energy Is Ever  So Growing' (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong>Dr Jagan Nath Shrestha</strong> is a Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University. He is also the President of Nepal Solar Energy Society. In an interview with New Business Age, Dr Shrestha shared his views on the overall energy sector in Nepal and made a case for developing renewable energy in the wake of acute energy crisis plaguing the nation for quite some time now. Excerpts:</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><b>&nbsp;</b></span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How significant a role can renewable energy development play to minimise the effects of the current electricity crisis?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We are having a gala time right now because it’s the rainy season. But once monsoon is over, it will be back to square one — we will experience 14-15 hours of power outage again. As for renewable energy, I don’t see a problem from such energy if we need energy only for lighting purpose. Solar electricity costs far less now compared to even three years ago. Apart from that, we have had innovations in lighting over the decades that have helped us reduce energy consumption. These have helped in household energy consumption.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, the major impact of the current energy crisis is on industry, which needs a lot of energy. We need 1,100 gigawatt hours of energy for the industrial sector which is about 40 per cent of the total electricity produced by Nepal Electricity Authority (NEA). I do see a couple of options to save our industries though. NEA has close to 1.77 million subscribers of which 1.2 million are households that consume very little energy as in these households it is mostly used for lighting purpose only. If we could equip these households with 100W solar panels, we can easily save 500 gigawatt hours which can be diverted to industry. For this, we need appropriate policies. In this manner, we can save our industries from a complete collapse.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">If all the investment in setting up solar power system in the households is to come from the government, there will be problems. It will probably take billions of rupees to provide 100W solar panels to these 1.2 million households. But if these households are made ready to share some of the investment, the problem can be reduced to a great extent. The government, on its part, can help by providing tax relief and subsidy of some kind. This will definitely encourage many people to opt for solar energy. On the other hand, NEA won’t have to lose because the industries are there to make up for NEA’s loss of customers.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">But, let me caution that even though it looks very simple, its management may be complex. This calls for a blend of engineering technology and management art. Technologists or managers cannot produce results working separately, they should complement each other.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you see the priority given in Nepal to research and development (R&amp;D) in the energy sector to tackle existing energy shortage?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A lot of R&amp;D in the energy sector is being done in advanced countries on a continued basis. I cannot say how practical it is for a developing country like Nepal to do the same. What Nepal could probably do is to identify suitable energy resources for different areas and decentralise energy utilisation in the country. It is definitely a challenge for our universities and research institutions to conduct research for actualised energy applications. The outcome of this research should benefit the communities across the country and create employment. At the same time, such a study should look at protecting the environment. The energy must be efficiently used in a productive way.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What are the major impediments to the development of energy sector in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">There are two sides of the coin. We either have too many energy experts who know all about it but can’t agree with each other or we don’t know anything about energy development at all. I personally believe there are people in Nepal who have a lot of knowledge and ideas about the energy sector. However, they have not been able to work independently from the government or other agents. And, the characteristic of this group is disagreement among themselves. My request to these experts is: first ensure a position where we can generate about 3,000 MW for fulfilling the basic need of the households and of the industries. Once this objective is met, there is no harm on agreeing and disagreeing on numerous other counts. But till that time, all the experts must work out a consensus and stick to that. A disagreement among experts puts the government in a bind.&nbsp;</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you view the debate on whether to produce power for export or for consumption within the country?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Of course, our focus should be to first meet domestic needs,. But, if we do manage to produce surplus energy, we should definitely export. However, in today’s context, how can we export when we don’t have enough for ourselves? Take Bhutan’s example: it invites foreign countries to invest in its hydropower development and puts some conditions on such investments. It wants them to produce as much energy as possible but allows them to export only when the country’s internal needs are fully met. On the other hand, we are talking about exporting power while the power outage hours are ever increasing. Nepal has a problem with capital. It takes a lot of money to develop hydropower but Nepal does not have that money. An investor will definitely want to see how he can recover his investment. My opinion is that Nepal should be self-sufficient in power first. While not wanting to export is an extreme view, we also cannot talk about exporting everything that we produce.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How is the possibility of alternative energy sources meeting the industrial needs of Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The perception that renewable energy cannot help industries is wrong. It all depends on the size and location of an industry. A medium scale industry may require anything between 500 KW and 10 MW. If such an industrial unit is situated near a micro or mini hydro plant, its energy needs may be fulfilled. Similar may be the case if the industry is located near a windy place or where there is plenty of sunshine. We can ascertain the energy feasibility for an industry after taking its size, nature and location into account. Talking about solar electricity, an average of 4-5 kilowatt hour per square metre per day can be generated in Nepal. During daytime, we can use solar energy directly. It can also be stored and used in the night or when there is no sunshine.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Which one will be the most economical source of energy for a particular industry?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">After studying the energy needs of an industry, the most economical, beneficial and rewarding renewable energy option can be determined and worked upon. We must give priority to hydropower if it can be generated in a sustainable manner. Besides being economically feasible, hydropower can supply energy reliably when the concentrated power requirement is high. Comparatively, renewable energy may not be available when needed. Though, of course, it varies from case to case. There are many industries in the world which run completely on renewable energy. It is not only about solar or wind energy; it could be derived from biomass, agricultural and municipal waste also. The advanced countries rely on renewable energy because they care about environmental degradation, global warming, pollution etc. They focus on economic development, energy security and environment protection. Solar energy can be adequate for household needs, especially for lighting purposes. I know of households in Nepal who spend as much as Rs 800 per month on candles against Rs 80 for electricity. This is where micro-financing can come in and help such families to install solar panels worth Rs 3-4,000. The accessibility, impact and applicability of renewable energy are ever so growing because energy consumption of electronic devices has come down to from about 1/4th to 1/100th. Renewable energy has become a feasible option in urban areas as well. I personally feel that people have to become conscious and inculcate a habit of conserving energy. Every kilowatt hour of energy saved is equivalent to one kilowatt hour generated. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How important is bio-gas production given the amount of organic garbage generated in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.1pt;">Bio-gas potential is immense. More than 250,000 bio-gas plants have been established so far mostly in remote areas where there is no electricity. A six cubic-meter bio-gas plant can generate thermal energy equivalent to one standard LPG cylinder in about 24 days. For the sake of drawing a comparison, you can say that bio-gas is providing 250,000 LPG cylinders worth of energy in the country. This is certainly an achievement and we can take&nbsp;this even further. Cow dung was used for operating bio-gas plants earlier. But a lot of experimentation has led to a state where anything bio-degradable is equivalent to cow dung. Therefore, we can certainly increase the number of bio-gas plants in Nepal. More than 70 per cent of the waste coming out of big municipalities is bio-degradable. We must process this waste and generate energy rather than sending it to landfill areas. The problem is that the waste does not get collected in a segregated manner. We must find ways to sort bio-degradable waste right at the source. Keeping different garbage containers at the source can save segregation cost as the users will throw the ‘right waste’ in a designated container. Sewage treatment is a serious practice in most cities of the advanced countries. The water is drained out in the river after removing bio-degradable waste from it and purifying the water. Waste management is absolutely crucial in the present context. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What’s the current state on private sector investment in renewable energy? What can be done to make this more adequate and on a bigger scale?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Private sector invests in a sector where it sees a profit. Its investment in renewable energy will happen once there is a healthy competition in the energy sector. The government doles out billions of rupees to buy petroleum products when prices get higher whereas the subsidy to micro-levl hydropower, solar and wind energy projects, for example, pales in comparison. Given this scenario, private sector investment in renewable energy is a distant dream. The government is biased towards petroleum products instead of letting them compete with other energy sectors. There should be a level playing field. The subsidy given to proven renewable energy technology is inadequate and impacts adversely the opportunity for private sector investment. The government should proactively employ proven technologies instead of giving subsidies. For example, the price of electricity sold by NEA has not increased in the last decade or so. Renewable energy sources cannot provide power at the NEA’s low rates , which are highly subsidised. Therefore, it’s no surprise that the private sector does not want to invest in renewable energy. They won’t get the desired returns. We need to correct the situation and ensure a level playing field to lure the private sector to invest.</span></div>',
			'published' => true,
			'created' => '2011-09-05',
			'modified' => '0000-00-00',
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			'description' => 'Dr Jagan Nath Shrestha is a Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University. He is also the President of Nepal Solar Energy............',
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	(int) 9 => array(
		'Article' => array(
			'id' => '410',
			'article_category_id' => '34',
			'title' => 'Bankers Call MoF, NRB Irresponsible (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 15pt;">B</span><span style="font-size: 9.5pt;">ankers have criticised Ministry of Finance (MoF) and Nepal Rastra Bank (NRB) for not fulfilling their duties even when the financial sector is passing through a crisis. They said they are disappointed with the functioning of MoF and NRB. Ashoke Rana President of Nepal Bankers Association complained, “NRB has always ignored our suggestions and our recommendations are never implemented.”</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Speaking at the interaction programme organised by Society of Economic Journalists - Nepal, Rana said that though suggestions are given to the Minister of Finance, nothing is done about them. He also alleged that NRB’s role has been biased. He claimed that NRB itself is in problem and lacks corporate governance. Rana also criticised NRB for not being able to regulate the banking and financial sector properly which led to the banking sector turning sick.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">He said that the steps taken to solve the problem of liquidity are incomplete and short-term. He claimed that recent steps taken by NRB to ease the liquidity crisis have only shifted the liquidity in the system but new liquidity has not been added. He also declared that inter-bank lending cannot be provided to sick development banks and finance companies.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Jhapat Bahadur Vohra, the then President of the Nepal Development Bankers’ Association, advised the government to bring special programme to address the liquidity issue through budget and monitory policy. He alleged that the faulty policy of the government shifted the capital to the informal sector. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Similarly Rajendra Man Shakya, President of Nepal Finance Companies’ Association, charged NRB with working against the institutions rather than in their favour. He alleged that NRB has intentionally put pressure on small companies. “If the NRB does not support these companies with a positive intention, there is no alternative but to close them down and submit the keys to the NRB,” he threatened.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Credit Rating Regulation Passed</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">T</span><span style="font-size: 9.5pt;">he Ministry of Finance has passed the Credit Rating Regulations. The draft prepared and sent by Securities Board of Nepal (SEBON) was approved by the ministry on June 24 with some amendments. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">After implementation of the regulation, the companies dealing with capital market instruments are obliged to be credit-rated.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">However, such agencies must have investment from a foreign company with at least five years of credit rating experience in international market and a minimum of Rs 20 million paid-up capital. Foreign partners can hold 25 to 75 per cent stake. Such agencies will rate companies issuing IPO, rights share, preference shares, debentures and other securities.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">FNCCI in Favour of Self Declaration of Wealth</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt;">F</span>ederation of Nepalese Chambers of Commerce and Industries (FNCCI) has officially proposed the government to bring in a scheme for voluntary declaration of wealth for the last time. FNCCI proposed such a scheme to the Ministry of Finance before implementing the laws on money laundering.</div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.25pt;">FNCCI proposed it while giving its views and suggestions for the budget. Similarly, FNCCI has also demanded to scrap the provision to produce the source of income while dealing with transations worth over Rs 1 million and buying and selling of properties above Rs 3 million.</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Ministry officials to collect loan repayment in Malaysia</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt;">A</span> team from the Ministry of Labour and Transport Management will go to Malaysia to collect loans provided to Nepali workers. These loans were provided in 2004 under Employment Promotion Programme and most of the borrowers are currently working in Malaysia. According to a source at the ministry, the team will visit companies where borrowers are currently working to collect the loan repayment. A six-member team will leave for Malaysia on June 27.</div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	The government had dispatched Rs 45 million as loan to indigenous, ethnic, Dalit, neglected, downtrodden and conflict victim communities. According to the source, after adding the interests, the loan amount has crossed Rs 60 million.&nbsp;</div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-align: center; text-indent: 0in;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">NDEX Begins &nbsp;Spot Contract</span></span></div>
<p style="text-align: justify;">
	<span style="font-size: 10pt; line-height: 115%;">N</span><span style="font-size: 11pt; line-height: 115%;">epal Derivatives Exchange (NDEX) has begun spot contract of gold and silver from June 27. NDEX has been working for two years on the future exchange of metals, energy and agriculture products. According to Santosh Pradhan, Chairman and Managing Director of NDEX, spot contract was commenced to diversify the investment of investors<span style="letter-spacing: -0.25pt;">.<br />
	</span></span></p>',
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			'created' => '2011-09-05',
			'modified' => '0000-00-00',
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			'description' => 'Bankers have criticised Ministry of Finance (MoF) and Nepal Rastra Bank (NRB) for not fulfilling their duties even when the financial sector is passing through a crisis. They said......',
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	(int) 10 => array(
		'Article' => array(
			'id' => '409',
			'article_category_id' => '34',
			'title' => 'Siddhartha’s Branchless Banking At Dailekh (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt;">S</span>iddhartha Bank Limited has kicked off its branchless ‘Easy’ banking service from Dailekh. The bank launched the service on June 15 by issuing a smart card with which banking transactions can be made. Chief District Officer of Dailekh, Bashudev Adhikari, inaugurated the new service.</div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.25pt;">The need for this service arose as the bank has to manage cash distribution under the World Food Programme’s Cash for Work. The bank said that the machine provided for the branchless banking at Dailekh identifies its customers by their fingerprints and photos, making the service secure and effective. With this service, people can access services like deposit, loan, remittance, money transfer, among others in the village itself. The bank also said that the social security allowance provided by the government can be distributed to people with this service.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">PLO Doubling Its Production</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt; letter-spacing: -0.05pt;">P</span><span style="letter-spacing: -0.05pt;">urbanchal Lube Oil Pvt Ltd (PLO) is doubling its production from the coming fiscal year. Bhola Dulal, Managing Director of the company, said that PLO is doubling its capacity as per the policy to increase production every year. He added, “We are also increasing production to make Nepal independent in lubricants and grease.”</span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The company produces&nbsp;one million litre of lubricants and 550,000 kilograms of grease. According to Dulal, PLO plans to produce three million kilograms of grease and lubricants from the next year. PLO is also preparing to add infrastructure to increase the production. Established with Rs 11 million investment in 2001, the company’s share capital has increased to Rs 150 million. The company claims that lubricants produced by the company under brand names PLO and Star covers 26 per cent of the market share. The company is producing over 200 types of products by importing raw materials mainly from Dubai, Quatar, Australia, Russia, Korea, India and Iran.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">SEBON Revamp Needs More Staff</span></span></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">Securities Board of Nepal (SEBON) has brought some changes to its organisational structure. Dr Surbir Paudyal, Chairman of SEBON, said that amendments were brought in to enhance its capacity. He also informed that amendments were made based on a report prepared by Securities Board of India (SEBI).</span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">In the old structure, there were seven departments and 13 sections while the new structure will have six departments and 23 sections. Currently, there are 38 employees while the new structure will have double the number of staff. SEBON’s announcement of a revamp comes at a time when there is widespread criticism of its effectiveness. SEBON has been given the rights to regulate Mutual Funds and Credit Rating Agencies, and while Commodities market is also likely to fall under its jurisdiction. Paudyal said that it would take some time for new the structure to come into effect.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Food Production Rises By 11%</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt; letter-spacing: -0.25pt;">F</span><span style="letter-spacing: -0.25pt;">ood production has increased this year by 11 per cent compared to the previous year. Dr Hari Dahal, Spokesperson at the Ministry of Agriculture and Cooperatives, said that with the growth in production, Nepal will have a food surplus of 110,000 thousand metric tonnes.Dahal said that last year the country witnessed a deficit of 330,000 metric tonnes of food grain. “In the current fiscal year, 8.61 million metric tonnes of food has been produced which is 11 per cent higher than the last year,” he revealed. In the previous year, 43 districts faced food-shortage while this year the number has come down to 38.</span></div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	According to Dahal, favourable climate, increased subsidy in chemical fertilizers, use of improved seeds and technology resulted in the increased production. Out of the total production, 367,000 metric tonnes will be used to produce feeds for livestock. There is a demand for 5.4 million metric tonnes of food grains annually.&nbsp;</div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">NTA Proposes To Use RTDF</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="">N</span><span style="font-size: 9.5pt;">epal Telecom Authority (NTA) has sought permission from the Ministry of Finance to use the funds collected in Rural Telecommunication Development Fund (RTDF). NTA Spokesperson Kailash Neupane said that the authority wants to use the amount collected for the development of telecommunication infrastructures. Rs 3.25 billion has been collected in the fund so far.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Neupane revealed, “With the amount, NTA is planning to issue tender to lay optical fibre in all 75 districts. As soon as the ministry approves the proposal, we will issue the tenders.” According to the telecommunication policy, the amount in fund can be used by NTA to finance infrastructure development. Telecommunication operators contribute two per cent of their income to the fund. Purushottam Khanal, Chief of Rural Telecommunication Department of NTA, said, “We are planning to extend information highway all over the country with the accumulated fund.”</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">NTA has planned to complete the development project in two phases for east and western parts of the country. Khanal revealed that NTA has earmarked Rs 2.59 billion for the eastern region while Rs 1.90 billion for the western region. As of now, 35 districts are linked by the optical fibre. NTA started collecting two per cent from the service providers since its establishment in 1994-95. Now, around Rs 1 billion is collected annually in the fund.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">20 Places Shortlisted for Mid-Hill Cities </span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">T</span><span style="font-size: 9.5pt;">he government has shortlisted 20 places along the proposed mid-hill highway to select ten of them as new cities. The selection was made by Ministry of Physical Planning and Construction ont he recommendation of&nbsp;Prof Dr Bhim Subedi, the consultant associated with city identification project. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Among the 20 shortlisted places three are from Accham including Rakam, Safebagar and Binayak. Similalry, three places of Rukum – Chaurjahari, Rukumkot and Musikot - are in the short list. Among the other places shortlisted are Fidim, Basantapur, Dumre, Ghurmi, Khurkot, Baireni-Galchhi, Diktel and Patan (Baitadi). Similarly, Burtibang, Dipayal,&nbsp;Dulegauda, Jarayotar (Bhojpur), Kurintar (Chitwan) and Mangaltar (Kavre) are likely to be chosen to be developed as cities.&nbsp; <br />
	</span></div>
<p style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Though there are more than one place included in the short list, Prof. Dr. Subedi said that his recommendation is to select at least two places from each development region to ensure proper regional balance.</span></p>',
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	(int) 11 => array(
		'Article' => array(
			'id' => '408',
			'article_category_id' => '34',
			'title' => 'Birgunj SEZ Construction (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">T</span><span style="font-size: 9.5pt;">he construction work in the special economic zone (SEZ) of Birgunj is nearing completion. However, industrialists complain that the law needed for the operation of the SEZ which is hoped to boost exports, is still not enacted.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The SEZ is being constructed in an 832 bigha land that was once the premises of Birgunj Sugar Mills.&nbsp;The idea to establish a SEZ at this location was finalised seven years ago with an objective to increase export competitiveness of the country. The government began building the SEZ as per the Industrial Policy that promises various facilities to the exporters. However, the industrialists are arguing that the facilities should be provided also to the industrial units that produce goods for consumption within the country. Jagdish Agrawal, Chairman of Nimbus group of companies said the government policy to protect only the export-oriented industries is wrong. He said that in a country like Nepal where the internal production is not enough to meet the internal demand, there is no point in providing incentives only to production meant for export. He also suggested setting up economic zones specialised in certain products. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Om Prakash Sikaria, Former President of Birgunj Chamber of Commerce and Industry however, expressed hope that the SEZ would help in the development of export-oriented industries in and around Birgunj. However, he complained at the delay in introducing a separate law required for the operation of the SEZ.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Both Agrawal and Sikaria pointed out that the Birgunj SEZ will have problems as it is located away from the highway and the dry port. The Birgunj SEZ will have five blocks. Among them, block A will be the biggest with an area of 343 bigha. Block B will have 123 bigha while the area of block C will be 49 bigha. Similalry, block D will have 178 bigha and block E will be of 133 bigha.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169); letter-spacing: -0.6pt;">Maoists not for Majority Foreign Stake in Nepali Banks</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt; letter-spacing: -0.1pt;">U</span><span style="letter-spacing: -0.1pt;">CPN –Maoist Constituent Assembly (CA) members do not want branches of foreign banks in Nepal. They have started political lobbying saying the foreign banks established in Nepal will leave negative effects on the economy.</span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.15pt;">They have taken a stand not to allow foreign banks to own more than 49 per cent stakes in banks in Nepal. They want it to be included in the Banks and Financial Institution Act (BAFIA) which is in the process of amendment. “This is the issue of nationality,” said Narayan Prasad Sharma, a Maoist CA member and coordinator of BAFIA sub-committee. “We are determined to make provisions that only Nepali citizens and entities can hold a majority stake in Nepali banks,” he added. “It will be a threat to the national economy if 51 per cent stake is not held by the Nepalis,” he clarified. Another Maoist CA member Hari Roka said that the provision about the ownership of a foreign bank branch should not exceed 49 per cent and it should be mentioned in the law itself. However, the Maoist stand is against the World Trade Organisation (WTO) provisions. While being the member of WTO in 2004, Nepal had signed an agreement to allow foreign investments into the country from 2010.</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Panchakanya Operates On Full Capacity</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 13pt;">P</span><span style="font-size: 9.5pt;">anchakanya Steels, a Panchakanya Group company, has begun operating to its full capacity. Biswojay Pudasaini, Sales Manager of the company, said that the company has invested Rs 100 million to increase the output.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">With the upgrade in production, the company has begun producing 80 thousand metric tonnes of steel rods annually. Previously, only 60 tonnes of steel rods was produced in a year. Pudasaini claimed that with the increase in production, market share will also increase to 25 per cent. He said that government and foreign projects largely use Panchakanya Steels products.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Panchakanya began producing to its full capacity from the second week of June. According to Pudasaini, the company installed the latest technology after replacing the old one. However, he said that the product is yet to be supplied to the market. The company is producing rods from its plant at Bhairahawa.</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169); letter-spacing: -0.6pt;">Shiva Ram wins Surya Nepal Central Open</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">S</span><span style="font-size: 9.5pt;">hiva Ram Shrestha registered an eight-stroke victory over Sanjay Lama to take home the Surya Nepal Central Open title at the Gokarna Golf Club. He carded four-under 68 on the final day for a total of 10-under 278 to list the 11thcareer title, highest by a pro in the Nepali tour. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Similarly, Lama stood on second position with a total of two-under 286 after the final round score of five-under 67, while Mani Rai played a round of six-over 78 to score the third position at&nbsp;one-under 287. Samundra Giri and Ramesh Nagarkoti shared the fourth position at 289.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">In amateur category, Tashi Tsering claimed the trophy with a total score of 10-over 298 while Bikash Bogati came second at 299.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Out of the total cash purse of Rs 425,000 of the third event under the Surya Nepal Golf Tour 2011-12, Shiva Ram received Rs 90 thousand, while Sanjay bagged Rs 57 thousand. Similarly, third-placed Mani pocketed Rs 45 thousand. Dorji Sherpa, Vice-President of Gokarna Forest Resort and Ghana Shyam Thapa, former President of Nepal PGA handed over the prizes to the winners.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Deposit Insurance Mandatory for Commercial Banks Too</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 10pt;">N</span>epal Rastra Bank (NRB) has started sending letters to commercial banks directing them to insure deposits up to Rs 200 thousand. “We have directed commercial banks to ensure deposit insurance in next fiscal year,” Bhaskar Mani Gyawali, Spokesperson of NRB, said.</div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	The central bank has said that deposit insurance has been made mandatory to safeguard the deposits of common depositors at a time when financial institutions are considered fragile. Gyawali said that deposit insurance is made extensive as a part of winning back confidence of depositors. Deposit insurance programme began this year starting from development banks, finance companies and microfinance banks. Till date, deposits of Rs 529.6 million of 1.4 million depositors in 138 financial institutions have been insured.&nbsp;</div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Eight Polytechnics in the Offing</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 13pt;">E</span><span style="font-size: 9.5pt;">ight new polytechnic institutes will be set up in different parts of the country with financial assistance from the Nepal government and some friendly countries. Total investments into all these institutions will add up to Rs 3.32 billion. These institutes will be established in Makwanpur, Rupandehi, Rautahat, Sarlahi, Kailali, Dhanusha, Chitwan and Kathmandu. Bishnu Koirala, Director of the Council for Technical Education and Vocational Training (CTEVT), said these establishments will be financed by national and foreign investments.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">With a financial assistance of Rs 450 million from the Indian government, a polytechnic will be set in&nbsp;Hetauda, Makwanpur, will be established with the support of Indian government. According to Koirala, Another polytechnic will be set with a Korean assistance of Rs 520 million in Butwol, Rupandehi. Polytechnic institutes in Janakpur, Chitwan, Kathmandu and Kailali will be set up with a government assistance of Rs 500 million for each of the institutes.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<p style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Similarly, nursing institutes will be set up in Gaur, Rautahat, Malangawa and Sarlahi with investments of Rs 150 million each by the Nepal Government. According to Koirala all these institutes will be ready in four years. </span></p>',
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	(int) 12 => array(
		'Article' => array(
			'id' => '407',
			'article_category_id' => '34',
			'title' => 'NEA Deceived On PPA Rate (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="">T</span><span style="font-size: 9.5pt;">he private sector has accused Nepal Electricity Authority (NEA) of deceiving electricity producers on the rate of Power Purchase Agreement (PPA). NEA has increased PPA rate by 20 per cent on projects up to 25 megawatts.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Previously, electricity producers could raise price up to nine times in PPA rate but now they can increase up to only five times. With this, the PPA increase rate said to be 20 per cent will actually be 10 per cent, said Gyanendra Lal Pradhan, a power producer, The government promised to increase PPA by 20 per cent in projects that will be completed within four years but NEA did not follow it.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The private sector is saying that with the latest increase, internal return rate will be lower than 12 per cent. Power producers are saying that nobody will be interested to borrow from banks at 16 per cent and invest for that rate of return. Independent Power Producers Association-Nepal (IPPAN) says that for 30 years, average PPA rate should be fixed at minimum Rs 6 per unit. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Dr Subarna Das Shrestha President of IPPAN said that due to high interest rate, ongoing projects are also on the verge of being scrapped.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 24pt; color: rgb(0, 92, 169);">Bhatbhateni Supermarket in Koteshwore</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14pt;">B</span>hatbhateni Supermarket and Departmental Store has opened its new outlet at Koteshwor from June 11. During the inauguration, Min Bahadur Gurung, Managing Director of Bhatbhateni, said that the new shopping centre is equipped with customer care desk, elevator and escalator for physically challenged people along with other modern amnesties.</div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	He said that 200 people are getting employment in the supermarket out of which 90 per cent are women. The five–storey supermarket has been built at an investment of Rs 500 million. Gurung revealed that within this fiscal year, new supermarkets will be established at Jawalakhel and Chuchepati. He said its chain outlet in Pokhara is under construction. He also revealed that supermarkets at Bhatbhateni and Maharajgunj register an annual turnover of Rs 2 billion.<br />
	 </div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 22pt; color: rgb(0, 92, 169);">Electricity Development Corp within 15 Days<br />
	<br />
	</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt; letter-spacing: -0.25pt;">T</span><span style="letter-spacing: -0.25pt;">he government has announced to set up Electricity Development Corporation within 15 days from June 8. Gokarna Bista, Minister of Energy, said, I will show by establishing the corporation within 15 days. He added, Committee formed for the inception of the corporation is working to complete the task within seven days.</span></div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.25pt;">Finance Minister Bharat Mohan Adhikari said that legal consultations are going on for setting up of the corporation. He also revealed that the corporation will not be controlled by the government but will be an independent unit. World Bank, Asian Development Bank, China Exim Bank and other international entities will be invited to invest in the company. Bista said that the seed capital of the corporation will be around Rs 7 to 15 billion. The government had proposed the establishment of Electricity Development Corporation after declaring power emergency in the country some months ago.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);"><br />
	Siddhartha and NMB to Operate Mutual Fund<br />
	<br />
	</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt;">S</span>iddhartha Bank Limited has become the first company to file an application to the Securities Board of Nepal to work as a mutual fund. One year after the regulation came into force, first application for licence to run mutual fund has been registered.</div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.25pt;">Siddhartha Bank has begun the process of establishing a mutual fund under the name Siddhartha Mutual Fund. The bank is planning to establish fund under Siddhartha Asset Management, bank's sister organisation, according to Bhola Dhungana, Office Secretary of the bank. The fund will be established with Rs 100 million paid-up capital. The company has said it will begin operation as soon as it gets approval from the SEBON. Similarly, NMB Bank has also registered an application on SEBON to operate its NMB Mutual Fund. NMB has prepared necessary requirements for operating the mutual fund. The fund will be managed and operated by sister organisation of the company, NMB Capital Limited.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 24pt; color: rgb(0, 92, 169);"><br />
	Interbank Lending For Six Months</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt; letter-spacing: -0.25pt;">B</span><span style="letter-spacing: -0.25pt;">anks and Finance Companies can issue interbank loans for up to six months. Nepal Rastra Bank (NRB) has made a special provision for interbank loans with effect from June 27. Bhaskar Mani Gyawali, Spokesperson of NRB, said, To lower the pressure of liquidity, this special provision is made.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	Now, commercial banks, development banks and finance companies can issue loans to each other against the acceptable collateral. According to Gyawali, such lending will be for six months on the maximum.&nbsp;</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20pt; color: rgb(0, 92, 169);"><br />
	Progress in Amending Securities Transaction Act<br />
	<br />
	</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt;">T</span>he Securities Board of Nepal (SEBON) has presented a proposal to the Ministry of Finance (MoF) to amend the Securities Related Act 2007. Paristha Paudyal, Director at at the Board's Regulation Department said, the amendment is to accommodate a provision to authorise the Board to regulate the commodities exchanges as well.</div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<p style="text-align: justify;">
	<span style="font-size: 11pt; line-height: 115%;">In this year's budget, the government had announced to arrange for regulation of the commodities exchanges. Accordingly, a committee was formed with representatives from SEBON, MoF and commodities exchanges. The proposed draft amendment is based on the recommendation of the committee, said Paudyal. Currently, there are five exchange companies in operation while five more are trying to acquire license. </span></p>',
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		'Article' => array(
			'id' => '406',
			'article_category_id' => '34',
			'title' => 'Nimbus Trains 2,000 Poultry Farmers(july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	Nimbus has conducted around 34 free trainings this year to 2,000 poultry farmers in different parts of Nepal. It has been conducting these trainings on a monthly basis and has covered more than 50 districts of the country so far. The poultry farmers were trained on poultry farm management, bio security at small farms, commonly encountered poultry diseases, summer and winter management, summer stress, vaccination schedule etc.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	Nimbus has its own training cell which is headed by a veterinarian. It also has a mobile training center to train poultry and livestock farmers. It also conducts trainings for cattle farmers of Chitwan, Dhading and Tanahun in association with Practical Action.</div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-align: justify;">
	 </div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 22pt; color: rgb(0, 92, 169);">Sunrise to Invite&nbsp; Joint Venture</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 9pt;">S</span>unrise Bank Limited has decided to partner with an&nbsp;international bank. Moti Lal Dugar, Chairman of the Bank, said that the bank is talking with a well-known international bank for partnership. Dugar said that the partnership will be finalised soon. He opined it is better to invite foreign invest rather than merge with a national bank. So, the company is bringing in a strategic partner. He also revealed that the bank is soon launching international visa credit card. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.3pt;">&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-align: justify;">
	 </div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20pt; color: rgb(0, 92, 169);">Hyundai’s new brand Motto</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Hyundai Motor Company, the world’s fastest-growing automotive company by brand, officially announced its new brand direction and statement at the 2011 North American International Auto Show in Detroit. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The new brand statement “New Thinking. New Possibilities.” encompasses Hyundai’s new brand concept, “Modern Premium”, which aims to provide customers with emotional value and experiences beyond expectations, says the company. “It’s bigger, smarter and driven by the desire to share stylish, high quality and efficient vehicles with everyone” it says and adds: “New Thinking means challenging convention and pushing boundaries. And New Possibilities means coming up with more forward-thinking ideas and solutions. Hyundai’s new way of thinking is to share premium value with more people and make new possibilities for people and planet by constantly generating new ideas. It gives an opportunity to take a look at the new vision for the future of Hyundai.”</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Today, customers do not believe that expensive cars with unnecessary technology are premium. They no longer want to simply show off their status. Instead, they want their core needs fulfilled at an accessible price and with a car that exceeds their expectations; a car that reflects their values and the times in which they live. “Hyundai is not just a company that makes cars. Hyundai is a company that creates new possibilities. Our goal is not to be the biggest car company. Our goal is to be the most loved automotive company on the planet, and to be a trusted lifetime partner of our owners,” said Vice Chairman Chung, Hyundai Motor Company.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">In the most basic sense, a car is just a way to get from point A to B. But in reality, it is a place for much more - first dates, bonding time with the kids, quiet time alone. It’s a great place to store your gear, enjoy great music, spend a quick moment studying before an exam, or even take a nap or have a meal. “Hyundai’s goal is to create new values and a new culture that will upgrade the in-vehicle experience. Hyundai makes cars to enhance quality of people’s life’, says the company. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Nirakar Shrestha, MD of Laxmi InterContinental says: “With the global introduction of Hyundai Motor Company’s new brand statement “New Thinking. New Possibilities.”, we here at Laxmi InterContinental are pleased to implement the overall brand philosophy in Nepal. The new thinking of HMC relates to the new benefits that it will provide for its customers enjoyment. It seeks to provide additional values sought by society today (enabling more people to enjoy premium values at a fair price). HMC refers these new values as New Premium, Hyundai Premium, or Modern Premium. And Laxmi InterContinental is committed to deliver truly Hyundai Premium along with other services to its valued customers.”</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 22pt; color: rgb(0, 92, 169);">HYUNDAI Premiums in Nepal</span></div>
<div style="margin-bottom: 11.35pt; text-align: justify;">
	Laxmi InterContinental P. Ltd.; sole distributor of Hyundai for Nepal, revealed the new Sonata and Tucson recently.</div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 13.5pt;">Tucson</span></div>
<div style="margin-bottom: 11.35pt; text-align: justify;">
	First impression counts for a lot. Set eyes on the new Hyundai Tucson and we bet you’ll find your second and third glances are just as rewarding. Synthesis of flawless, cutting edge design, embodying style in every curve, sporty and powerful, yet, refined and relaxed. And when it comes to safety and security, the new Tucson is all equipped that gives you all the assurance you need and even beyond your expectation.</div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 13.5pt;">Sonata</span></div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.05pt;">Within seconds of getting acquainted with a Sonata, you will begin to wonder if it’s still today. The breath taking exterior design with rigid surface and structure that creates impression of constant, graceful motion. Inside, you will be surrounded by features capable of doing things that will transform your expectation of what a car can do. Indeed, everything about the Sonata - its sharp looks, next generation technology, and uncommon luxury and style - speaks uncannily of tomorrow.</span></div>',
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			'article_category_id' => '50',
			'title' => 'Feedback July 2011',
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	<span style="font-size:12px;"><span style="color: black;"><br />
	<strong>Reality’s Time Has Not Come Yet</strong> <br />
	<br />
	T</span><span style="color: black;">here is a certainly a mismatch between the housing options available and the demand for them in the Kathmandu valley and elsewhere in the country. By any standards, there are more people looking to own a house than the number of houses ready and being built for the prospective customers. But the real problem is high cost of the housing units and poor financing options available. As everybody is talking today, the banks and financial institutions have lent so much to the realty sector that the very existence of the banks and financial institutions has come under threat.<br />
	<br />
	At one of time, it was believed that some banks have exposure to the realty sector to the extent of 85 per cent. As experts will tell, recovering money from the realty sector is time-consuming and depends on many factors, especially financial and political stability in the country. Given the fragile economy and the informal nature of banking and finance in the country due to fluid political situation, it is hard to find buyers for apartments costing upwards of Rs 5 million. Owning an apartment is traditionally not the first choice of the people; they would prefer buying an independent unit. That's a fact.<br />
	<br />
	In line with trends outside, Nepal too has a number of realty companies ready with projects but most of them do not seem based on firm fundamentals.<br />
	<br />
	For example, the entire range of suburb within the Kathmandu valley in the three districts of Kathmandu, Bhaktapur and Lalitpur, there are any number of residential area being developed out of agricultural lands, by demolishing hills and moulds into plain land and by creating plots for independent housing. The cost to develop a property for a modern residential project is exorbitant and the companies are not finding enough buyers at the astronomical rates at which these plots are on sale. These plots were developed with the money of the banks and financial institutes but they now lie disused as there are fewer takers for them in view of a retarding economy. </span></span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div>
	<span style="font-size:12px;"><span style="line-height: 115%; color: black;">The property business in the country can take off only when the economy shows a constant growth over a period of 5 to 10 years at least. Expecting exciting moments in the realty business at this time is tantamount to wrong calculations.<br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><b>- Sanjay Neupane</b></span></div>
<div>
	<span style="font-size:12px;"><b><span style="line-height: 115%;">Bhaktapur</span></b></span></div>
<div>
	<span style="font-size:12px;"><b>&nbsp;<br />
	</b></span></div>
<div>
	<span style="font-size:12px;"><b>&nbsp;</b></span></div>
<hr />
<div style="margin-bottom: 0.0001pt; vertical-align: middle;">
	<strong><span style="font-size:12px;"><br />
	Kudos to &nbsp;Smart Telecom<br />
	<br />
	</span></strong></div>
<div style="text-indent: 0in;">
	<span style="font-size:12px;">The interview with Subhas Bajracharya, CEO, Smart Telecom Pvt Ltd, in June 2011 issue of New Business Age was quite informative and in-depth. The fact that Smart Telecom has already made its services available in 40 districts in the country is worth praising. It is not easy to create telecom infrastructure in the rural parts of our country because of difficult topography and poor road infrastructure. Smart Telecom has really shown commitment and a sense of purpose but by all counts its formidable presence in the rural telecom sector has not been complemented by the government. Telecom policy in the country is all about earning more revenues without any incentive for any worthwhile progress made by the telecom companies. Bajracharya should take heart and know that the investments that his company has made in terms of capital and commitment will win him the market share as well not only in existing markets but also in the new markets. But for all that he will have to wait for some time till the government comes out with a more plausible policy.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><b>- Pradeep Rimal</b></span></div>
<div>
	<span style="font-size:12px;"><b><span style="line-height: 115%;">Ghattekulo</span></b></span></div>
<div>
	<span style="font-size:12px;"><b>&nbsp;</b></span></div>
<div>
	<span style="font-size:12px;"><b>&nbsp;</b></span></div>
<hr />
<div style="text-indent: 0in;">
	<strong><span style="font-size:12px;"><br />
	For Higher FDI, &nbsp;Stronger GDP a Must<br />
	<br />
	</span></strong></div>
<div style="text-indent: 0in;">
	<span style="font-size:12px;">There is no denying the fact that the country needs more FDIs and that would come to the country in due course, that is when the political situation becomes normal and economy is firmly grounded.&nbsp;But for both, the country needs to stabilize itself first. And, some serious thinking has to be done as to how to increase the GDP from the current level to say some 10 times bigger in the short term. Only a robust GDP can attract FDIs. FDIs come seeking profit and if the economy is not in a position to return that profit, FDIs are known to have flown out of the country as well. In that case, it harms more than it benefits. Trade regime between Nepal-India and Nepal-China is a far cry from what the giant neighbours are witnessing. Nepali economy needs to be harmonized with the economies of its neighbours to reap the benefits of the gigantic progress being made by the two countries. That alone can guarantee a jump-start to both the economy and FDI inflow.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><b>- Sanatan Dhakal</b></span></div>
<div>
	<span style="font-size:12px;"><b><span style="line-height: 115%;">Koteshwor<br />
	<br />
	<br />
	<br />
	</span></b></span></div>',
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	<span style="font-size: 9.5pt;">T</span><span style="font-size: 9.5pt;">he fiscal and monetary policies for FY 2011/12 made public in the third week of July have shown an appallingly anti-free market and anti-private sector tilt. The much touted about three-pillar concept that puts the government, cooperatives and the private sector at par is in itself an unfeasible proposition.</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">In a free-market economy, it is unfair on the part of the government to seek its share of the role in the market. At best, the government can be a facilitator. That means its role should be limited in introducing appropriate legislations, maintaining law and order and keeping surveillance to ensure a fair play in the market competition. That is in fact not a role of the government but its duty to be undertaken even to justify its very existence. An anti-free market argument suggest that the role of the government is essential at least to build large-scale infrastructures and to conduct economic diplomacy. But, squarely, it is the private sector tax that finances these activities, and the government is just a manager of it. If the private sector is exempted of all taxes in exchange of their contribution in building infrastructures too, one may not at all need the role of the government. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;"><img alt="fromtheeditor" border="1" height="315" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/ucpn.jpg" style="margin: 10px; padding: 10px;" vspace="10" width="400" /></span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;"><br />
	Moreover, the proposed budget (fiscal policy) plans to spend more as general expenditure (just to maintain the government) than what it plans to collect as taxes. Economic diplomacy has remained a rusted sword, unused ever since the debate began regarding its importance. For all these reasons, government's self-claimed role as one of the three pillars is thus a clumsy hyperbole.<br />
	<br />
	<br />
	There has been an extensive debate on recognising the cooperatives as an equal and parallel pillar. Apparently, the appropriate recognition it deserves is a sub-pillar under the private sector head. By all logic, effectively, there should be single pillar-economy led, invested, managed and operated by the private sector.</span><br />
	<br />
	<span style="font-size: 9.5pt;">But this policy has treated the private sector just contrary to this. The government has in fact done more harm by using its discretionary power to siphon away substantial amount of budget from development programmes to appease the Maoists. In this sense, the government role is becoming increasingly dangerous for the general people.<br />
	<br />
	<br />
	In comparison to the fiscal policy (budget), monetary policy has taken more balanced approach. For example, despite the announcement in the budget that saving and credit cooperatives would now on be supervised by the central bank, the monetary policy has chosen to remain silent on it.<br />
	<br />
	</span></div>
<div>
	<span style="font-size: 9.5pt; line-height: 115%;"><br />
	&nbsp;As the fact of the matter, both fiscal and monetary policies have come as mere rituals. The present day problems of the economy perhaps are beyond the jurisdiction and capacity of the realms of these policies. Therefore, to reviewing the economy from the present slump the leadership should first address the challenges of non-monetary and non-fiscal nature, but have direct bearings to the economic growth and prosperity of the country. <br />
	<br />
	<br />
	</span></div>',
			'published' => true,
			'created' => '2011-09-06',
			'modified' => '2012-08-31',
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			'description' => 'The fiscal and monetary policies for FY 2011/12 made public in the third week of July have shown an appallingly anti-free market and anti-private sector tilt. The much touted about............',
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	(int) 1 => array(
		'Article' => array(
			'id' => '418',
			'article_category_id' => '42',
			'title' => 'Budget As The Booster (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in;">
	<span style="color: rgb(178, 34, 34);"><em><span style="font-size: 10pt;"><img align="left" alt="stocktaking" border="1" height="127" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/bikram(2).jpg" style="width: 103px; height: 127px;margin:10px;padding:10px;" vspace="5" width="103" />By Bikram Chitrakar</span></em></span><br />
	<br />
	<strong><span style="font-size: 18px;"><span>Market still waiting for the breach of 380<br />
	<br />
	</span></span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 10pt;">(Nepal Stock Market Review for 26 June to 24 July, 2011)</span><span style="font-size: 10.5pt;"> D</span><span style="font-size: 9.5pt;">espite moving more than 18 points up during 26 June-24 July period settling at 329, Nepal's stock market is still in an indecisive stage. Technical analysis indicates that Nepse Index should cross 380 mark before the investors can be confident to commit good money in the bourse. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The major influencing factor of the review period was the government budget for the fiscal year 2011-12. This is the first time since the Constituent Assembly election of 2008 that the government budget was announced in time, i.e. before the fiscal year started. As a result, the planned government expenditure is expected to be spent this year which will help ease the liquidity crunch in the banking system and boost economic activities around these expenditures. Moreover, the budget has also announced some direct measures that are expected to boost the market. One major announcement was the reduction in the capital gains tax in share investment from 15 percent to 10 percent for institutional investors and from 10 to five percent for the individual investors. Also announced was relaxation in the deadline for the merger of banks and financial institutions by one more year till mid-November 2012. Banks that notify the authorities by that time that they have decided to merge will get a number of concessions including the tax as was announced in the last <br />
	year's budget.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;"><img align="right" alt="stocktaking" border="1" height="310" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock data august 2011.jpg" style="margin:10px;padding:10px;" vspace="5" width="400" />Therefore, the benchmark Nepse index started moving up even before the budget was announced and gained 18.66 points or 5.11% during the review month to settle at 365.43. The highest point during the month was on 20 July at 380.23 and lowest on 27 June <br />
	at 329.49.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Even a couple of days before the budget announcement, the Central Bank relaxed its strictures on loans to the real estate and housing sectors as well as on loans against the security of publicly traded share certificates. Similarly, the market is hoping for the banks and financial institutions to announce healthy financial positions when they make public their fourth quarterly financial reports. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Bulk trading of Friday, 15 July gained a proportion of a scandal of a sort as Friday is fixed for odd lots (smaller than 10 units of shares) transaction only.&nbsp;That bulk transaction distorted the NEPSE index on following Sunday, but Nepal Stock Exchange says that anomaly was fixed immediately. Securities Board has been asking the Stock Exchange to explain the discrepancy. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">During the review period Securities Board of Nepal (SEBON) announced programs for coming fiscal year including <img align="left" alt="stocktaking" border="1" height="281" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock data1 august 2011.jpg" style="width: 415px; height: 281px;margin:10px;padding:10px;" vspace="5" width="415" />Central Depository System, Credit Rating Agency and Mutual Funds. Likewise Monetary Policy for the year 2068/69 was released on 21 July affirming the pre-budget and budget announcements. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 8pt;">Performance by Sector<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Commercial banking sector was dominating the volume of trade in Nepal Stock Exchange also during this review month. This sector accelerated 27.23 points or 8.08% to close at 365.43. Manufacturing sector gained hefty 50.44 points to reach 587.34 while hydropower sector moved up 19.57 points to rest at 608.36.&nbsp;Others sector surged by 15.27 points along with 9.04 points up in hotel sector to reach 487.61 and 408.07 respectively. However insurance sub-index skidded 17.26 points or 4.15% to rest at 415.81. Development bank lost 0.05 points or 0.02% to <br />
	close at 296.4. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;"><img align="right" alt="stocktaking" border="1" height="299" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/stock data2 august 2011.jpg" style="margin:10px;padding:10px;" vspace="5" width="400" />Sensitive index that measured the performance of 117 blue chips scrip went up 4.08 points or 4.54% to 89.85 while the float index calculated on the basis of real transaction increased 1.62 points to 31.07. Total of Rs. 1689316916 was realized during review period from 4457556 units of share trade via 19340 transactions.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The accompanying figure illustrates the sector wise distribution based on the total volume of trade. As usual commercial bank sector covered the highest volume holding 46.69% of total trade followed by manufacturing and processing sector (43.57%). Hydropower sector occupied 3.62% and development bank sector 2.68% while other sectors made up for the rest. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Technically, Simple Moving Average (SMA) is performing higher in the short term as Nepse index is higher than 30 days SMA forming M pattern which may result into correction. In the long run it is still weak. Only breaching the level of 380 will create some acceleration.<br />
	<br />
	</span></div>
<div>
	<i><span style="font-size: 9.5pt; line-height: 115%;">(Chitrakar is a Stock Analyst with Jamb Technologies Pvt Ltd.)</span></i></div>',
			'published' => true,
			'created' => '2011-09-06',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => '(Nepal Stock Market Review for 26 June to 24 July, 2011)Despite moving more than 18 points up during 26 June-24 July period settling at 329, Nepal's stock market is still in an indecisive.........',
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	(int) 2 => array(
		'Article' => array(
			'id' => '417',
			'article_category_id' => '47',
			'title' => 'A Diamond Merchant Via Hong Kong',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div align="center" style="margin-bottom: 0.0001pt; text-align: center; line-height: 120%; vertical-align: middle;">
	<span style="font-size:12px;"><img align="left" alt="dimnond" border="1" height="310" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ramesh.jpg" style="width: 319px; height: 310px;margin:10px;padding:10px;" vspace="5" width="319" /></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 12px;"><b><span style="line-height: 120%;">Ramesh Maharjan</span></b></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle;">
	<span style="font-size:12px;"><span style="line-height: 120%;">Chairman</span></span></div>
<div>
	<span style="font-size:12px;"><strong><span style="line-height: 115%;">R B Diamond Jewellers<br />
	<br />
	<br />
	</span></strong></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Born in a farmers family, Ramesh Maharjan is known as a successful entrepreneur who has taken his business to international levels. His jewellery business has expanded to USA. Today, he is Chairman of Maharjan Group that owns five companies - Nepal Diamond Company, RB Diamond Jewellers, Nenergy International, NB Nepal Builders and Maya Foundation. These companies are active in manufacturing, export and retail business of diamond jewelleries, energy, construction and even social welfare.</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">He has three jewellery stores in USA. He has recently diversified his business through the Maharjan Group that he established some years ago. R B Diamond Jewellers is the manufacturer, wholesaler and exporter of diamond jewelleries while Nepal Diamond Company deals in diamond and gold. Nenergy International is working in the area of developing hydroelectricity. Similarly, his company NB Nepal Builders is into the housing sector while through Maya Foundation he is involved in&nbsp;welfare of differently-abled people. Likewise, Maharjan is also Chairman of Nepal Gems and Jewellery Association and is associated with various organisations and associations.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan's childhood was largely spent in the agricultural milieu. His parents were farmers in Lalitpur but they had a sense that their children must go to school and get education. He passed his School Leaving Certificate from Namuna Machhindra School at Lagankhel. He passed Intermediate from Patan Campus. However, he did not take his education further.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan and his family did not see their farm leading them anywhere. “I did not see any future there,he says. Since my childhood I thought of doing things differently and in the best possible way.Maharjan says business was sitting deeply in his mind. He was concentrating on agriculture thinking he will land a good job some day.&nbsp;Apart from his works in the field, he was active in the local clubs, libraries, and in the locality and even won a local election. At times, he thought of going for foreign employment as well.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">His young romantic days were going on. Then, his family insisted him to get married. Though young Maharjan was determined to make his dreams come true before tying the nuptial knot, he surrendered to his family and married Sarita Maharjan with whom he was in love. Sarita turned out to be his lady luck. At that time, he was just 18. Sarita's family was in Hong Kong. Maharjan's in-laws invited him to Hong Kong as they thought there is not much scope in the country. Then, he took a job in Hong Kong at a wholesale company of diamonds as a helper.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">He proved his honesty and won the confidence of the bosses. So, he was gradually given more tasks of messenger and even handling banking transactions. They even tested my greed and left thousands of dollars in open drawers when I was the only person in the office. Next morning, they used to cross-check. I never thought of betraying them but was dedicated to perform well to get more salary in a legitimate way, he narrates how he passed the tests.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Working for the whole day had a benefit that he never felt homesick. He claims he worked from 5 am to midnight so that he can sleep quietly at night and does not have to miss his family back home. He was always conscious and determined that one day he has to return to Nepal. While in Hong Kong, he developed the interest in diamonds and also thought of taking something back. Then, he requested his employer to get him some training so that he can learn about diamonds. He says, My boss was a friendly person and he used to help us with everything as he understood we the foreigners will return if we were not given proper facilities. He was also happy to see my eagerness developing for diamonds and arranged for a basic training from the very next day. After completing his works in the office, he would go for training from 9 pm to 11 pm. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><img align="left" alt="diamond" border="1" height="238" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/ramesh1.jpg" style="margin:10px;padding:10px;" vspace="5" width="350" /></span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	Maharjan shares, I acquired basic knowledge on types, grading and assorting diamonds. Then, I requested my employers for further trainings. Later, he was sent to Mumbai for a six-month training at the company's factory for cutting, grading and polishing. I was there just to gain knowledge on diamonds. So, I did not even cross the railway station and kept myself fully focussed on my training. In the beginning, I felt quite uncomfortable as I did not even know how to hold a diamond properly. Gradually, I learned everything, he recalls. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">There too he spent the whole day pondering over the diamonds. He claims he grabbed things quickly and could separate colours within two weeks. As he learnt things he also started working there though he was not being paid. At the end of six months training, he was found to be performing&nbsp;well like veterans of the industry, he claims. When he returned to Hong Kong, the company's views about him changed. He was promoted to sales department. However, he did not stop learning while on the job. He says, For a couple of years more, I learnt from the market on pricing and quality and even on the ways of marketing.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">After staying for around seven years in Hong Kong, he decided to return to the country as the family also asked him to do so. When he returned, he was not alone. He had knowledge, skills and even money to invest in the business of his own. For three months, he carried out a kind of market survey, leaving no jewellery shops unvisited. In three months, he found expertise missing from the sector in his country. The way of working was not appropriate either. Then, I felt in markets like Nepal, such valuable things can only be sold with a guarantee and not as use-and-throw item, he says.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">He sees a lot of artisans and craftsmen&nbsp;here but their ways of working worry&nbsp;him. Maharjan believes that best masterpieces can be created in Nepal itself, which will have the potential to be sold anywhere in the world. I encourage people in this business to create fusion of our traditional knowledge with the modernity, he says. He does not see any competition in the field of creativity.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan has always prioritised doing something new than simply following what others are doing in the crowd. That is the mantra to be on the top, he believes. Then, he initiated manufacturing in a professional manner as he was not satisfied with the quality of locally-made jewelleries.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">For Maharjan, business is more than profit and margins. He believes jewellery business cannot sustain without goodwill and trust. He describes, Customers must be assured that they will get back cash upon returning the products. My target is to do marketing through quality rather than advertisements. Maybe, that is why he claims that he has never advertised his jewellery store or even kept a billboard with the showroom's name. He claims he gets customers through trust and goodwill gained by selling quality products.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan sees the jewellery market growing in the last four years with a definite change in lifestyle of people in Nepal. In the past, only head of the family used to earn but now everyone makes some earnings. They can afford what they desire for. Rather than copying others, now people want something unique to look different,he explains. He adds that it is Nepali culture to invest in jewelleries and houses as&nbsp;assets rather than luxury.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan says he is very much satisfied with what he is doing. His business philosophy based on service rather than just selling precious metals has grown multinational. He has stores at Manhattan Fifth Avenue, Alaska and a distribution point in Los Angeles. In 2005 the first store was opened in USA on his wife's insistence. Now, Maharjan's in-laws are looking after the stores there. We wanted to see how it works outside and we had that confidence too. We were overwhelmed by the response of people when we put up a stall for the first time at a programme organised by Nepalis in America,he proudly shares. He claims he sold jewelleries worth US$ 10 thousand within half an hour. Then, the first store in Manhattan was opened with the help of the company where he worked in Hong Kong. He says he still has good relations with the company, where he learnt the tricks of the trade. Now, the major export destination of finished diamond products from Nepal is the US itself and these products are exported through R B Diamond Jewellers.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Under his group, more than 150 employees are working. Maharjan claims that he treats them as his family. “It depends on them where the company will head for. I believe good people should prosper and succeed. I take care of their comfort and satisfaction,he shares his ways of motivating staff. He says problems are sorted out by discussing them. He has also given them assurance that they don't have to worry about their family's health and education. Maharjan also claims that he can't bear the sad faces of employees and cares that they don't get hurt.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">He is planning to expand his business further to handicraft. Maharjan's aim has always been to promote the local knowledge and craftsmanship. In his free time, Maharjan concentrates on the designs and obtaining more knowledge in the stones. He is currently busy designing for the 2012 collections. He says he can ponder over a stone for hours. Apart from that, he also likes to read spiritual books and contemplate on spiritual aspects of life. Maharjan says he is content with what he has got and does not think much about himself and his luxurious wish list. Even during leisure he plans about his companies. He says his family has always been with him even in the business so he feels lucky that he does not have to fight over managing time.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;">Maharjan goes back to past, I used to feel that I don't have any vision. From my seniors, I learnt a lot about life and even doing business. I am here all because of such guiding hands and suggestions. He also has the hope that his second generation will take his business further. He expects their education, energy and his experiences to lead the business in future.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div>
	<span style="font-size:12px;"><span style="line-height: 115%;">The 47 year old Maharjan is planning about making a foray into the handicraft business. Apart from that, he is also looking forward to expanding outlets all over the US. <br />
	<br />
	<br />
	</span></span></div>',
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			'description' => 'Born in a farmers family, Ramesh Maharjan is known as a successful entrepreneur who has taken his business to international levels. His jewellery business has expanded......',
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	(int) 3 => array(
		'Article' => array(
			'id' => '416',
			'article_category_id' => '46',
			'title' => 'Joseph Massey',
			'sub_title' => '',
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			'content' => '<p>
	<span style="font-size:14px;"><strong>Interview : August 2011 - 'Second Phase Of Growth Would Depend On Developed Capital Market'</strong></span></p>
<p>
	<span style="font-size:14px;"><strong><br />
	<br />
	<br />
	</strong></span></p>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><img align="left" alt="" border="1" height="200" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/int1.jpg" style="margin:10px; padding:10px;" vspace="5" width="120" />Joseph Massey is Chairman of South Asian Federation of Exchanges (SAFE), a forum of exchanges with 32 members from South Asian Region, UAE and Mauritius. SAFE works for the development of capital markets in the region and offers itself as a platform to these exchanges for global integration. Massey is also the Managing Director and CEO of MCX-SX, which currently offers currency derivatives trading and is the most recent entrant to India's public-trading exchanges. He has over 18 years of experience in the corporate and financial arena and worked with organisations like Life Insurance Corporation of India, the Reserve Bank of India (RBI), Stock Holding Corporation of India, Multi Commodity Exchange of India Ltd, Interconnected Stock Exchange of India and the Vadodara Stock Exchange. Massey was in Nepal during the executive committee meeting of the SAFE from July 6 to 8. In an interview with Gaurav Aryal of <i>New Business Age</i>, Massey shared his views on capital markets of South Asia and the current status of the Nepali share market. Excerpts:</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>What is the scope for growth of secondary markets in South Asian countries?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">I think, post-global crisis, this region is emerging as a high growth region because of the natural demand that it has got and also the governments are very keen to develop each sector so that more employment is created and global investors are willing to come and actually invest. If you look from a capital market perspective, there is demand both from primary and secondary markets. Whichever country you take in the SAARC region, it still has to make tremendously large progress in terms of domestic penetration. That market is huge. Then, we have another opportunity which is in global market. I think all economies have very large opportunity to develop in the secondary market.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Except India, other countries in South Asia have not been able to develop much in this field. What is the problem you see?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">There are couple of prerequisites for the market to develop. Indian market has a history of 130/140 years. Over such a long period, we have developed the culture of investment. Despite that, we have penetrated the market relatively less. Indian market is&nbsp;more developed because we have more instruments, more investors, more companies, good infrastructure, clearing corporations, guaranteed good regulation, and infrastructure which is comparable to the best in the world. However, there are many products that we still don't have and now India is aspiring to create those products. India has progressed but it still has a lot to do. Rest of the countries, based on their position in the cycle of economic development, could have reached some level of development in the exchanges. We expect that to happen over a period of time. When global fund comes to one region or one country, visibility of the entire region gets enhanced. Today, you see a lot of funds coming to India. Soon those companies will come and set up their companies in India. Once they set up their companies and invest there, they will also gradually look for what market opportunities are there in the region. India is gradually opening up and Indian citizens can invest outside. Once we open up the market more, a lot of investment from global market will come to India and from there they will go to the other countries of the region. I think the level of development depends on the scale of economy and how much it has developed. But it need not necessarily take the same length of time for each country to reach the same stage of development. We can cut short the time by learning from other's experience. Highlight</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Foreign institutional investors and foreign direct investors are still hesitant to enter this region whereas they are going to Taiwan, Singapore etc. Why so?<br />
	<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">These countries have been rapidly growing for a very long time. So, the global communities have already identified those destinations. As a result, in&nbsp;the last 20/30 years, their regulatory system and infrastructure have developed so much that the global investors don't see a difference between these countries and their home markets. In SAARC region, some countries have progressed well while others have not. But we all know the model that we have to implement. We just need a more concentrated effort in finding out what are the gaps; what they have and what we don't have. And, we can put regulation and infrastructure in place. The domestic demand being so large, we will see the same level of capital coming in this region eventually. Today, we are not there but we need not take another 30 years to reach there. We can reach there in next five years.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>What is the objective of creatig a South Asian network of stock exchanges?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">I think we are all determined to do this. We understand each country has its regulatory mechanism and its own capital account laws. But we want to sensitise the countries that economies of scale will be realised if this region can work as one unit. Relatively, hard infrastructures like road, transport and others may take time to be developed. Financial market is soft infrastructure which can happen easily. The secondary and tertiary gains of developing an efficient financial market are very large compared to manufacturing and few primary sectors. So, instead of developing the manufacturing sector first and then going to the financial services, it would be a good idea that in this region we shift focus to financial services and the advantage of financial services trickle down to the rest of the economy. Our cost of fund will reduce and we will be able to raise more funds for developing infrastructure, for economic activity and as a result all benefits will flow such as more jobs, better education and necessary infrastructure. So, more capital gets attracted and suddenly we will get out of the vicious cycle. Today, we are in a vicious cycle of low capital, low infrastructure and therefore, low investment. All countries can't achieve the same level of infrastructure simultaneously, but when some of them achieve a level, the trickle-down benefit will happen to the entire region.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Protection of small investors in capital markets is taken as a major challenge. How can such network protect the&nbsp;investors?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">At SAFE, we have identified the global best practices. Each country has adopted these global best practices which are prescribed by IOSCO (International Organisation of Securities Commissions). What SAFE does is that the good practices of one country are shared with others. We don't wait for those countries to learn these things over a period of time. We are sharing these experiences with each other so, until real business can get done, we can share a lot of knowhow and ensure that the level of knowledge of each one is the same.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Why are South Asian governments hesitant in opening their markets for international investment?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">We are saying that we need to have investor protection. So, should we open the market or not? The first level of investor protection is that you have better infrastructure for trade, better laws, and more capital to protect them. All these things can come if you have a market of significant size. We want the best protection to be given to the domestic investors. But we cannot provide that as our markets are very narrow, we don't have all the products, we don't have large number of investors, our trading volume is small and the number of companies is low. You know that the total income from such market will be naturally very less. So, we need to invest more in increasing the capital, improving law and, giving the investor better safety. If you widen the investor base then obviously it will generate more resources. You will be able to draw more resources into the infrastructure, set up a clearing corporation, depository, have best tools and educate your people better. So, you need the capital market to be very efficient. Today, each country has domestic investors but they are very few. We need institutional investors who can bring in big money and take a deeper and longer view. So, once we complete this, we have to complete the market by getting good quality investors by offering all the products available today in the global markets. Once you create these two, your protection will improve; your market will become safe because your market is aligned to global market. If the investors are investing in the growth of Nepal, you get a diversified base of investors in which some are taking a view with 10 years, some with five years, and some with just one year or less. When you get the mix of all of them, your market will be stable. Some may go out but many others will stay.&nbsp;</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>How do you see the future of capital market in this region?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">I think there are three or four facts which indicate that the future of capital market is enormously good. All the countries in this region more or less have the same level of development. They are developing and gradually going up the scale. In the initial phases, all of them are dominated by the public sector enterprises. Public sector enterprises naturally have the challenge of resources. Since the demand of economy is very large, there is a requirement of private capital and private production in order to supply that requirement which the public sector will not be able to deliver. The public sector has reached its level and now the private sector has to come up. It has to come up in infrastructure, education, manufacturing, services and everywhere. For developing all these, the people need risk capital. The risk capital can only come from the capital market. So, I think one is dependent on other. If you have a robust capital market, more people will be able to raise capital and set up an economic enterprise which will create more jobs and more business ventures. It is a cycle. Every economy has realised that we have gone through the stage where the public sector was dominant and&nbsp;banks had a major role to play. Second phase of growth is going to be dependent on developed capital market that should have equity, bond, derivative, service management etc. so that people can raise short term money and long term money. Then, we will see private enterprises start coming in. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Experiences have shown that the derivative trade has distorted the natural growth of the market. Can South Asia region avoid such distortion?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><img align="right" alt="inteview" border="1" height="287" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/int.jpg" style="margin:5px;padding:5px;" vspace="5" width="400" />SAFE is advocating an exchange traded market where derivatives get traded on the exchanges. They are safe because the counterparty has a guarantee from a clearing corporation. They are better risk-managed, more tightly regulated, and more transparent. As a result, exchange traded market is always a safe market. In 2008 and in the earlier 1998 crisis, what went wrong was outside the exchanges. So, the lesson from the 2008 crisis is that&nbsp;we should get more and more products on the exchanges. Second lesson is we can have laws which are similar all over the world. So, G20 is now advocating that we should have such norms and regulation that are similar in all countries. The advantage SAARC region has is that we don't have to make the same errors some other countries have made. We now already have better regulation on banking system and in the securities market, we have all the institutions developed, most countries have depository, clearing corporations and most countries now trade on electronic system. Having built an infrastructure that is similar to global environment and global rules that are gradually becoming common, I think we are operating on a much safer market.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Many prominent stock exchanges like those in Europe and Japan have either crashed or remained stagnant for a long&nbsp;time now. Is it so because those economies have reached the point of saturation?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">Post-2008, two things have happened. While the exchange traded markets are same, their economy is slowing down and the financial system has observed a very large amount of loss. It will take a long time for them to come out of these losses that they have suffered outside the exchanges. Secondly, those economies are diversifying to come back to high growth phase. In doing so they are investing outside the country. You can't increase the economic growth significantly if the economy is already developed. So, they will only have to look at investing and business opportunities in rest of the world. The good news is while Europe and the US are slowing down, Asia and Africa are&nbsp;growing. If you look at world growth perspective, today there is more demand than it was before. According to a recent news, Boeing is supplying US$ 30 billion worth of planes but all these planes are going outside US. The world economic structure is changing. There is more demand outside Europe and US. And the world community is happy. It does not matter whether I sell my planes in US or outside US. In this process, companies benefit, the society where they work benefits, overall the whole world benefits. So, until the global market continues to be on a growth stage, I think it is a good news and more and more of this will continue to happen. Today, we are living in the era when the world market has more or less started looking similar or at least it has aspirations to look similar. So, we are getting into more openness, more transparency, similar regulation, more international trade. The growth of one will cause growth in other. I think the world economy will continue to grow, especially these emerging economies and developing countries will continue to grow for next 30/40 years and it is good news to the rest of the world.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Do you see the possibility of instruments and mechanism like regional mutual funds in South Asia to invest in the share market?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">One of the discussions that we had both with the SAARC secretariat and the central bank here was in this very line. We should try and create some kind of regional hub in which we could have institutions which are not only taking domestic view but are taking the regional view. It could be regional investors, regional mutual funds and exchanges with cross border trading. It will depend on how much time it will take for each regulator and each country to digest that. But I think in the foreseeable future, in next two to three years time some of these concepts will actually become a reality.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Now, the commodities future trade is also booming in the region. And they seem to have posed sort of regulatory challenge. In Nepal such market is blamed to have facilitated capital flight. How is your view? <br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">Commodities markets are markets for risk management. Secondly, they are market for giving price signals of what is expected to happen in future so that policy makers can take policy measures three months or six months in advance. Third, the physical market for commodities lack transparency, they are fragmented. To give a common view to the rest of the world on what is happening in this market, whether there is crisis building up or not you need to have an efficient futures market. An efficient futures market also brings an efficient physical market. I don't agree that commodities market cause flight of capital because it is essentially a market for risk management. People will not invest very large amount of money until they invest in the physical market. Futures contract should be for one, two or three months which is not a long-term investment. Typically, flight of capital takes place because of other natural economic indicators like high inflation, low growth of economy and interest rate structure. The domestic capital has to remain here and does not have an option. But if it is global capital, it goes to the most efficient market which has high growth, low interest bearing and good opportunity for growth. Commodities markets are rational markets. These markets will look at the fundamental demand and supply. Based on the fundamental demand and supply, price recovery will take place. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">If someone is buying wheat, cotton or gold, that means the price of that commodity in the future can go up. But the price&nbsp;of a commodity futures contract will go up only if the physical commodity goes up. Physical gold is going up because someone is buying physical gold. They are too integrated together. Physical market demand and supply is dependent on actual consumption and actual supply. I don't think we should panic at the price fluctuation in the commodities exchanges. However, if we can have&nbsp;regulatory system, more transparent system, better safeguard on exchange, clearing corporation it will eb better because then some of these worries&nbsp;will go away. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	</span></span></div>
<div style="margin-top: 5.65pt; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><strong>Of late, the share market index as well as confidence of investors has remained low in Nepal. How can these be bolstered up ?<br />
	<br />
	</strong></span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);">There are no shortcuts to it. When an economy is going through a low cycle and if you only have domestic market, the entire country has one view. You don’t have a contrary view from anyone else because you only have individual retail investors. Their appetite to take a long term call is very minimal. So, when your market is going through slowdown, the individual investors will be more scared so they will also take a view which is not more than a day. Now, you need someone who can take a view which is for one month, one year or five years. This can only be done by institutional investors. So, it is paramount that Nepal tries and builds up domestic institutional investor community so you can put mutual funds in place. I don't know how your pension industry is, but I can be pretty sure that some of those funds will come and they will invest in the capital market. And insurance industry too can invest in capital market. This is level one. You now have a person who is willing to take a call which is a longer term. But still they are domestic and have a view which is not very diversified. If you can adjust global investors inside, you will have a view which is very different. They are willing to take a call which is much longer, in much larger quantum of money because now the stocks are available very cheap. Their cost of borrowing will be less. They can come and do large borrowing and as a result the market will grow up. So, in a market which goes to such a long term low cycle, the only way to break out of the cycle is by ensuring that institutional money both from domestic and global markets gets attracted to the country and I think you should do that.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(0, 0, 0);"><br />
	<br />
	</span></span></div>',
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			'id' => '415',
			'article_category_id' => '48',
			'title' => 'Nepal Can't Be Overpopulated (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle; text-align: justify;">
	<span style="font-size:12px;"><i><span style="line-height: 120%;"><img align="left" alt="madan" border="1" height="136" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/img(6).jpg" style="width: 112px; height: 136px;margin:10px;padding:10px;" vspace="5" width="112" />By Madan Lamsal</span></i></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size:12px;"><span style="color: rgb(134, 55, 59); letter-spacing: -0.05pt;">E</span><span style="letter-spacing: -0.05pt;">ver since the Central Bureau of Statistics (CBS) started to make the findings of the national census public, people have started wondering whether Nepal is really overpopulated. People have started to ask the same question to several experts and not so experts, politicians and economists. And the answers that come about are very interesting.&nbsp;</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;">Some samples of the answers: Nepali Congress leaders say: Nepal is not overpopulated. The reason as furnished by a leftist politician is that, for capitalists like the Nepali Congres ,the bigger the population, the higher the voter base. So the population is less until the Congress gets enough votes to form the government.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;">If you ask a Hindu or a Muslim or a Christian fundamentalist, the answer is still no. Because, to religious leaders, the fear of being outnumbered by the other religion is persistent and they believe that Pashupatinath, Allah or Christ will come to feed any size of population.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.15pt;">But, an&nbsp;immigration officer is most likely to say yes, Nepal is overpopulated ! This is because he must be getting tired of processing thousands travel documents of youth going abroad everyday. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;">But the economists are unlikely to say either yes or no. They will only say: the moment a country has overpopulation, it will not be able to sustain any addition in the population. Some of them may even advise you to read Danish economist Ester Boserup who made strong case in support of population growth for the economic benefit of the country. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;"><img align="left" alt="madan" border="1" height="399" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/economy.jpg" style="margin:10px;padding:10px;" vspace="5" width="350" />Whatever the people of different background may say, It is futile to worry about the size of the population. Because, more people, more production, more money, more consumption, more profit to the companies and more revenue to the government and more donations to the political parties and opportunity for more extortions to the affiliates of political parties of different hues and colours. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.05pt;">Even with a population close to 30 million we have been able to feed ourselves. We don't need to worry about gainful employment here within the country, as overseas employment will be in abundance as long as Nepalis agree to work for the pay just enough to foot the travel bill and payback the loan gotten to fly abroad, after five years of work. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: -0.15pt;">This means your country's income grows only when your people go abroad and send in money from there. That was so simple to understand for our forefathers who started the system of Lahure, i.e. sending people abroad (Lahore at that time) for earning. The same is being done today. And this should be expanded. This requires our population to increase further so that more people will go abroad and Nepal will earn more. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size:12px;"><span style="letter-spacing: 0.1pt;">Nepali economy is live and kicking just because of a growing population. Not only migrant workers, see it from every angle, the population growth is a must for economic growth. As more babies are born,&nbsp; the more diapers will be sold and there will be higher profits for such companies and a bigger pay rise to their&nbsp; employees.&nbsp;Therefore, clearly, the hue and cry of overpopulation in Nepal is an absolute anti-thesis to country's economic growth and people's well-being. </span></span></div>',
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			'description' => 'Ever since the Central Bureau of Statistics (CBS) started to make the findings of the national census public, people have started wondering whether Nepal is really........',
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	(int) 5 => array(
		'Article' => array(
			'id' => '414',
			'article_category_id' => '40',
			'title' => 'Demand And Supply (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The story of power position in Nepal is that of highest potential and lowest consumption. The electricity demand in Nepal is increasing by about 10 per cent every year and close to 40 per cent of the Nepali population has access to electricity through grid and off-grid systems. The main load centre is the central zone which includes the Kathmandu Valley. Nepal owns a number of hydropower plants with a total installed capacity of around 650 MW which includes several small and medium hydropower plants owned by Independent Power Procedures (IPP). A significant amount of energy is also supplied by thermal (Diesel) and solar photovoltaic power plants besides the micro hydro plants in hilly areas. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">There is a huge power demand-supply imbalance which is evident from load shedding implemented over the last several years now. At present, Nepal Electricity Authority (NEA) is supply -deficit. While the peak power demand in wet season is more or less met by the supply, the deficit during the dry season is very high resulting in power outage for as much as 16 hours a day in the capital itself. According to a forecast, the power misery due to supply-deficit is likely to continue till at least 2013-14, when, among others, Upper Tamakoshi (456 MW) is expected to be commissioned.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Constraints</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">There is no denying that lack of development of indigenous energy sources has resulted in an over-dependence on fuel import. This drains a significant portion of the nation’s foreign exchange earnings and poses threats to long-term energy security and to the environment. Pradhan reasons, “We can’t always depend on imported energy so we have to develop hydropower as it is the cheapest form of energy. There is no alternative to hydropower.”&nbsp;The government doles out billions of rupees to buy petroleum products when prices get higher whereas the subsidy given to other energy sources pale in comparison. There should be a level-playing field without any discrimination. “The state’s attitude is the major hindrance towards attracting private sector investment in renewable energy,” alleges Shrestha. He adds that the government should let petroleum products compete with other energy products instead of being biased towards it. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Another problem is that of major differences in opinion among the energy experts who don’t seem to agree on practically anything.&nbsp;A disagreement among experts also puts the government in a lot of difficulty. A common agenda for producing 3,000 MW is the need of the hour, probably leaving disagreements for the future.&nbsp;Shrestha explains, “I personally believe there are people in Nepal who have a lot of knowledge and an idea regarding the energy sector but disagreement takes precedence among them. My request to these experts is to first ensure a position where we can generate about 3,000 MW for basic need.”</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Potential</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Bio-gas potential is immense from the perspective of Nepal’s renewable energy sector. More than 250,000 bio-gas plants have been established so far mostly in remote areas where there is no electricity. A six cubic meter bio-gas plant can generate thermal energy equivalent to one standard LPG cylinder in about 24 days. In other words, bio-gas is providing 250,000 LPG cylinders worth of energy in Nepal. This is certainly an achievement that can be taken forward. Cow dung was used for operating bio-gas plants earlier, however, a lot of experimentation has led to a state where anything bio-degradable is equivalent to cow dung. Therefore, it is viable to increase the number of bio-gas plants in Nepal. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal receives ample solar radiation with approximately 300 days of sun a year. The development of solar energy is thus reasonably favourable in many parts of the country. As per a report by Alternative Energy Promotion Centre (AEPC) under the Solar &amp; Wind Energy Resource Assessment in Nepal (SWERA), the commercial potential of solar power for grid connection is 2,100 MW. Solar panels are a highly feasible option for families using minimum energy for lighting purposes and can be installed for Rs 3-4,000 per household. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">The third largest indigenous biomass source of energy in terms of consumption is agricultural residue in Nepal which directly comes from the agricultural crops. It is therefore indicative that more than two-thirds of the total energy requirement of the country can be supplied solely from agricultural residues while considering the heating value of the resources. More than 70 per cent of the waste coming out of big municipalities is bio-degradable. This can be processed at big bio-gas plants and used for generating energy rather than sending it to landfill areas. However, for this to happen, the waste has to get collected in a segregated manner by applying ways to sort bio-degradable waste right at the source. It requires discipline though to make the users dump ‘right waste’ in designated containers themselves. Shrestha cites the example of sewerage treatment as a serious practice in most cities of the advanced countries where water is drained back in the river afte</span><span style="letter-spacing: 0.35pt;">r taking out the energy and purifying it. He emphasises that waste management is absolutely crucial in the <br />
	present context. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The major impact of power outage is on industry as it needs 1,100 gigawatt hours (GWh) of energy for the industrial sector which is about 40 per cent of the total electricity produced by NEA. It has close to 1.77 million subscribers of which 1.2 million households consume minimum energy for lighting purposes. “If we could equip these households with 100W solar panels, we can easily save 500 GWh which can be diverted to industry,” Shrestha calculates. He adds that the government must take initiatives to this effect by providing tax relief and subsidy of some kind to the households and help the nation’s industries avert collapse. On the other hand, NEA won’t be affected adversely because the industries will be there to make up for its ‘apparent loss’.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal has over 6,300 rivers and rivulets and thousands of hills and valleys. The perennial nature of Nepali rivers and the steep gradient of the country’s topography provide ideal conditions for the development of some of the world’s largest hydroelectric projects. “If we could block the water in these valleys, we can conserve the rainwater and it can be a huge asset,” Pradhan advises. Hydropower could be the engine of growth for Nepal as it would offer opportunity to create employment, alleviate poverty and provide basic services including good governance. The development of this sector can be a potent contributor for transforming villages, cities and societies in Nepal into prosperous and inclusive economic zones. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Looking Forward</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal’s imports have increased by Rs 25 billion due to severe power cuts (Rs 12 billion-diesel, Rs 3 billion-electricity import, Rs 2 billion-battery, Rs 5 billion-inverters and generators, rest on other means of energy like candles etc). The country is already facing a trade deficit of Rs 300 billion, which makes it mandatory for Nepal to find measures towards minimising imports. Pradhan says foreign investment can come for the hydropower sector as it is the only area in Nepal for which investors don’t have an alternative. “The FDI for other sectors may get diverted to other countries due to various reasons such as low wages, security environment and tax free policies. However, in order to exploit the water resources of Karnali River, for example, they have to come to Nepal,” he elucidates.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Pradhan further recommends not to link water resources to nationalism. He elaborates, “Saudi Arabia makes oil available at the cheapest rates to its people and sells surplus oil for national development. We should also adopt this policy: </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The water unused today will go in waste; this is a time bound business.” He asserts hydropower is a sustainable source of energy for Nepal as well as for the region and has the potential to minimise imported energy. He says if Nepal can focus on water management, it can not only eradicate its domestic power woes but also play a regional and global role energy-wise. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Recent developments indicate that our focus will be on reducing load shedding in the next five years or so. “My observation is that energy crisis will continue in the next five years,” says Dr Shrestha. He adds the energy sector does not hold out a very bright future and will have many problems but Nepal can certainly make some valuable progress in attaining energy independence. He also warns experts and authorities against depending on a single energy source such as hydropower and instead asks them to work for an appropriate energy-mix. “We must determine our total energy-mix scenario over the next five, 10 or 20 years now,” he asserts.<br />
	<br />
	</span></span>
	<p class="newsubhead" style="margin-top: 0in;">
		<span style="font-size: 13.5pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">Power Projects Licenses </span></p>
	<p class="newsubhead" style="margin-top: 0in;">
		<span style="font-size: 8.5pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">(List updated June 03, 2011</span><span style="font-size: 10pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">)</span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Issued Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;Survey License for Generation (Below 1 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 202 projects = 149.769 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (1 to 25 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 220 projects = 1505.661 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (25 to 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 57 projects = 2966.68 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (Above 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 34 projects = 10854.12 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Construction License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 61 projects = 1385.806 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">List of Applications</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (Below 1 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 758 projects = 642.976 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (1 to 25 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 581 projects = 3932.34 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (25 to 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 69 projects = 3840.89 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; letter-spacing: -0.15pt;">Application for Survey License for Generation (Above 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 45 projects = 16798.72 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Survey License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 71 projects = 2596.117 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Construction License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 3 projects = 23.5 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">GON Reserved Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="margin-top: 7.45pt; text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">GON Reserved Survey License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 27 projects = 1627.699 MW</span></span></p>
	<p class="BODYTEXT" style="margin-top: 2.5pt; text-indent: 0in;">
		<span style="font-size: 14px;"><i><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Source</span></i><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">: Department of Electricity Development, Ministry of Energy</span><br />
		</span></p>
</div>',
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			'description' => 'The story of power position in Nepal is that of highest potential and lowest consumption. The electricity demand in Nepal is increasing by about 10 per cent every year and close to 40 per.....',
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			'id' => '413',
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			'title' => 'SHADOW OF ENERGY (july 2011)',
			'sub_title' => '',
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			'content' => '<div style="text-align: justify;">
	<span style="font-size: 8pt;">Despite immense potentials for electricity generation, Nepalis have to suffer long hours of power-cuts. This affects its industrial output as well, which in turn makes Nepal a less attractive destination for foreign investments. To come out of the current mess, experts offer many models but the problem is they donâte agree on which one to pursue in what degree. In this cover story, New Business Age unravels the industry and the roadblocks.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<b>&nbsp;</b></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 10.5pt; letter-spacing: -0.05pt;">N</span><span style="letter-spacing: -0.05pt;">epal's current energy situation is in dire straits, to say the least. Despite its potential to be a credible power producer even to the extent of exporting surplus energy, it has miserably failed at meeting its own domestic demand.&nbsp;A mammoth 68 per cent of our energy needs are met by exploiting forest resources which has resulted in reducing Nepal's forest area to a mere 30 per cent. If deforestation continues at the current rate, one should not be surprised if we have no forests to talk about in the next three to four decades. </span></div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">With increasing population, Nepal will not be able to fulfil its energy requirements if it depends so heavily on the declining forest resources. The consumption of petroleum products has grown incredibly over the past decade-and-a-half so much so that we spend more money on importing petroleum products than we earn by our total exports. “Nepal will have to take a World Bank loan in 2020 only to buy petrol fuel if its import continues unabated in the present manner and that will be a total disaster, says Dr Jagan Nath Shrestha, Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University.&nbsp;</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.05pt;">Nepal still does not have its own reserves of gas, coal or oil in economically significant quantity. Although its most significant energy resource is water, less than one per cent of hydropower potential is currently harnessed. Nepal is extremely lucky in terms of clean water over 225 billion cubic metres of water flows down its rivers every year which is approximately 20,000 litres of water per person per day. Even if Nepal was an aggressive agro-economic country, it would consume less than 5,000 litres per person per day. Looking at this surplus, Er Gyanendra Lal Pradhan, Executive Chairman of Hydro Solutions Pvt Ltd, says, “I see no reason why we should not exploit our water resources for meeting domestic water needs as well as exporting the daily per capita surplus of 15,000 litres of water.” </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.1pt;">It's no secret that Nepal's economic and social development is critically hampered by its inadequate energy supply. Moreover, developing and exporting surplus energy resources can help develop other sectors and enable the country to import other products that cannot be produced indigenously. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.05pt;">Energy Mix<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The total energy consumption of Nepal currently stands at over 10 million tonnes of oil equivalent (TOE). While close to 90 per cent energy is derived from traditional resources, the rest comes from commercial and renewable sources. Nepal’s electricity generation is dominated by hydropower and only one per cent energy need of the country is fulfilled by electricity. Bulk of the energy need is dominated by fuel wood (68 per cent), agricultural waste (15 per cent), animal dung (8 per cent) and imported fossil fuel (8 per cent). </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.05pt;">Energy Consumption<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Energy mismanagement has been plaguing the country for a long time now. It has become absolutely important to focus on energy resources that promise sustainable supply. “The total energy availability and the accessibility, impact and applicability of renewable energy are ever so growing because energy consumption of electronic devices has come down to from about 1/4th to 1/100th,” claims Dr Shrestha. He adds that people have to become conscious about and inculcate a habit of conserving energy. For example, every kilowatt hour (kWh) of energy saved is equivalent to one kWh generation. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The overall energy consumption in Nepal is largely dominated by the use of traditional and non-commercial forms of energy such as fuel wood, agricultural residues and animal waste. The remaining energy consumed comes through commercial sources such as petroleum fuels, coal and electricity and renewable sources. It would be worthwhile to mention here that the share of commercial sources in Nepal’s overall energy consumption has increased considerably in the last decade-and-a-half. The renewable energy consumption has been registering an annual growth of more than 15 per cent on an average. And, within the renewable energy system, solar energy consumption is increasing at a more-than-steady 200 per cent annually. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">A staggering 18 million metric tonne of forest timber is cut every year while experts say that the sustainable level is only half of it. There are 5.8 million households in Nepal but only 400,000 households use Improved Cooking Stoves (ICS). These households using fuel-efficient stoves save half the energy. Barring the urban areas where ICS cannot be brought to use, a good 3 million households in rural Nepal can benefit from this improved technology. If this endeavour could be pursued in a focused manner, the consumption of timber-for-fuel can come down to half i.e. 9 million metric tonne in the next three to five years. This could help the forests grow and make the forest usage more sustainable. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The new boundary of Traditional Energy Resources (TER) has extended beyond the territory of forestry. Biomass is the major source of energy, particularly in rural Nepal as availability of biomass resources for energy production exists in abundance. The new territory of bio-energy now encompasses agriculture, livestock, industry and human settlement sectors as well. However, the use of some traditional energy sources is neither sustainable nor desirable from environmental considerations.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">More than 300,000 households use solar electricity in Nepal whereas an average of four-five kWh per square metre per day of solar energy can be generated in Nepal. The solar dryers have extensive use in the rural areas for drying of agriculture products and food. Solar Cookers are being used to cook food which saves fuel and helps deforestation to slow down. For a large part of the rural population consuming low electrical energy, there is no viable alternative to solar electricity. Besides, solar electricity generating systems do not need fuel or extensive infrastructure and are easy and quick to install. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Water is plentiful in the rugged hills of Nepal and micro-hydro provides a more practical and cost effective alternative. An estimated 150,000 households benefit from the micro hydro sector in Nepal and it has greater potential to be a major source of energy in the rural areas. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The hydropower sector has made some progress indeed over the last five years or so. The private sector has come forward promising to develop 2,000 MW while the government has projects for 600 MW under construction and another 250 MW has been added recently. “We are certainly not late in identifying the sector’s immense potential but we must make it work now to ensure that we are not behind schedule in the future, Pradhan says on a cautious note. He adds, “This country will collapse if we don’t export hydropower in the near future because we have so much to import for which we need to pay through exports.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">However, the present situation is that Nepal has developed approximately 600 MW of hydropower only. Therefore, the bulk of the economically feasible generation has not been realized yet. Although bestowed with tremendous hydropower resources, only about 40 per cent of Nepal's population has access to electricity. Most of the power plants in Nepal are run-of-river type with energy available in excess of the country's demand during the monsoon season and deficit during the dry season.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Looking at the energy consumption pattern of the world, Nepal has one of the lowest energy consumption levels. An average of 15 gigajoule (GJ) per capita is the minimum that a country can think of. Out of this 15 GJ, most of the energy is spent on cooking and thermal applications. Dr Shrestha analyses the situation thus: Nepal's electricity consumption is probably one of the lowest in the world, hitting our economic activities hard. We are facing the consequences because of low production levels in this country.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The residential needs account for the major share of energy consumption (89.1 per cent), followed by transport (5.2 per cent), industry (3.3 per cent), commercial (1.3 per cent) and then the agricultural sector and others. Due to inadequate numbers of energy intensive industries, the industrial sector holds the third position in Nepal’s total energy consumption.<br />
	<br />
	<br />
	<br />
	</span></div>',
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			'id' => '412',
			'article_category_id' => '40',
			'title' => 'Give Topmost Priority To Hydropower Development In Nepal’s Interest (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong>Er Gyanendra Lal Pradhan</strong>, a hydropower specialist-cum-entrepreneur is an electrical engineer by training. He is currently the Executive Chairman of Hydro Solutions Pvt Ltd. He is also the Executive Member of Independent Power Producers’ Association, Nepal (IPPAN), Federation of Nepalese Chambers of Commerce &amp; Industry (FNCCI) and SAARC Chamber of Commerce &amp; Industry, Nepal. Er Pradhan has initiated a number of successful projects and enterprises of varied scope and sizes in his 25 years of career. He has received the prestigious ‘Manager of The Year 2006’ award from Management Association Of Nepal (MAN) and ‘Excellence Award 2010 in Energy (Hydropower)’&nbsp;from Hydro Nepal-Journal of Water, Energy and Environment. He has also won several other recognitions for his contributions to hydropower and clean energy. He has visited over 100 hydro power plants of 1 KW to 18,600 MW capacity in over 20 countries. In an interview with <i>New Business Age</i>, Er Pradhan shared his views on hydropower sector in Nepal and what can make it a booming success in the country. Excerpts:</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">How do you assess the overall development of hydropower sector in the country in last couple of decades?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The private sector started investing in hydropower after 1990 following the liberal policy adopted by the government. But there was a lack of favourable work environment due to the decade-long insurgency in Nepal. Even for the period between 2000 and 2005, you could hardly brand this sector as lucrative. However, after 2005, well-to-do and influential people including politicians have been investing and maintaining shares in hydropower projects. Today, all political parties have hydropower development as the topmost agenda in their manifestos. Though we are not late in identifying the sector’s immense potential, we must make it work now. The private sector has come forward promising to develop 2,000 MW while the government has projects for 600 MW under construction. Another 250 MW has been added recently. So, we have been making some progress indeed over the last five years or so. But, like I said, it’s about time we gave topmost priority to hydropower development in Nepal’s interest. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Despite having vast water resources, why has Nepal not been able to exploit it to the maximum?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The earth’s surface area is dominated by water at 70.8 per cent but the proportion of clean or fresh water is three per cent only. From that perspective, we are extremely lucky to have 20,000 litres of clean water per person per day in Nepal. However, water mismanagement in our country has led to where we stand today. There is no water in the tap and no water for irrigation and electricity either. You must remember that water can never be regenerated. Projects such as the ones related to irrigation can never be sustainable because they do not have adequate output income. These need to be related to hydropower because the income generated from electricity can pay for such projects. If you look at the projects today, they sustain because revenue from electricity has helped make water available at affordable prices to farmers and the common people. Flood control, irrigation, fishery and electricity should go hand-in-hand wherever possible; there are many projects in Nepal which prove this point. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Have we become over-optimistic due to climate change? What does global warming mean to Nepal? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Yes, the nature provides us clean water through snow glaciers and the glacier melting is helping us provide water throughout the year. If global warming continues at the current level, it will adversely affect several parts of the world. We will have fewer glaciers of course but it will not affect Nepal much. We get rainwater in excess of 225 billion cubic meters so we are getting more rainwater than the water from the glaciers. Therefore, our water level has not receded overall. In fact, global warming has helped us have more clean water as we have been receiving greater rainfall during monsoon. A majority of Nepal’s cities and towns are situated at an elevation. Hence, they don’t fall in the flood-prone zone. We have over 6,300 rivers and rivulets and thousands of hills and valleys. If we could block the water in these valleys, we can conserve the rainwater and it can be a huge asset. Water is like oil (energy) for us, it’s a blessing for the hydropower sector. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">What is your analysis of the debate on power production for external versus internal consumption? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Without any doubt, the first need is that of domestic consumption. The current load-shedding problem may seem a big issue right now but it can definitely be dealt with over the next four years or so. In fact, we will also have surplus with us which we should look at exporting. This country will collapse if we don’t export hydropower in the near future because we have so much to import which we need to compensate with exports. For example, iron and steel is our most exportable item at over Rs 10 billion but the net saving is only 15 per cent as 85 percent money is spent on importing raw materials. On the other hand, if we could export hydropower for the same worth, 85 per cent of the money would stay in Nepal itself. There is huge value addition when it comes to hydropower. But if we can’t use the water today, we will have new water tomorrow and it continues in that manner. We are sending precious foreign currency abroad for importing petroleum because we are not exploiting our water resources.&nbsp;&nbsp; </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Talking about alternative energy, can it be adequate for household needs? Further, do you see it contributing to industrial growth in some way? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">To tell you the truth, solar energy generates only 12 MW in Nepal which can’t end load-shedding. Do you think solar energy can meet our current requirement of 2,500 MW? The solar sector was given subsidy which yielded practically no result. There would be 2,500 MW of sustainable hydropower if hydropower sector was granted the same amount of subsidy. We won’t need any battery and there would be no pollution either. However, I do agree that solar energy must exist for people living in high mountains for the sake of social justice as we cannot take electricity to those areas with the same ease as solar energy. Other alternative energy sources such as wind too cannot support any economic activity, leave alone industrialisation. There is a potential for wind energy in Mustang and Kali Gandaki corridors but why would you generate wind at Rs 10 per unit when you can do the same at Rs 5 per unit from water flowing below these very corridors. Besides, you have to invest heavily to create necessary infrastructure on top of the mountains. Saudi Arabia gets so much of sunlight but it has no solar energy. It doesn’t have to look elsewhere because of its abundant oil resources. Similarly, we have hydropower in Nepal so we must focus on developing it instead of looking at the so-called alternatives that are not cost-effective at all. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">The government has increased 20 per cent on PPA rates but you don’t seem to be satisfied. What is your idea of a good deal?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">I will give you the numbers. Let me tell you that rates cannot be negotiated behind closed doors. Only a few Nepali companies can build projects upward of 25 MW individually because the high degree of technical and financial capacity required for building such projects may not be at the disposal of most companies. More than 95 per cent of the projects being built by Nepali entrepreneurs are below 25 MW capacities. These projects would produce power at only Rs 5.45 per unit for a 30-year average while 25 MW and above projects are built at a lesser cost and can generate power at Rs 7.50 per unit for the same period. Even the projects promoted by Nepal Electricity Authority (NEA) staff have been promised Rs 5.54 per unit. From a distance, it seems that 20 per cent has been increased on existing PPA rates for private sector investors. However, escalation has been brought down to five years from the earlier nine years. So, in effect, the net increase will come to 10 per cent only. After the increase, the rate has barely managed to reach Rs 6 per unit which is a discriminatory practice being pursued by the state. The so-called increase of 20 per cent for private sector investors is an illusion. We are not even asking for a rate of Rs 7.50 per unit. We are confident in our belief that if we are given Rs 6.50 per unit, besides being a rupee cheaper, some more projects may want to invest in this crucial sector.&nbsp;</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Despite all the fuss, private sector investment is not coming forth for hydropower development. Why so?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Well, nobody invests in a business to make losses and hydropower is no exception. The prospects must be commercially viable for any investment to come in. Further, the banks have invested a whopping 70 per cent of the total money involved in hydropower. If they have to additionally invest crores of rupees every year for infeasible projects, they are not going to finance. Therefore, no private sector project is going to invest willingly given the current situation barring a couple of projects who may invest to honour license validity. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">The government has proposed to establish a separate bank for hydropower development. Do you endorse the idea? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">We have given the government a figure of 2,500 MW to end load-shedding. We need an investment of US$ 5 billion for this. So, over the next four-and-a-half years, we will require Rs 350 billion. It is only possible if we use half the amount in the banking system of Nepal which has a total of Rs 700 billion. Given this situation, the state has to bring foreign investment as it is difficult for the private sector to do so. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">It is good to open a bank but do we really need one? It is better to have a fund manager. We have a few failed examples from the past – the state floated Agricultural Development Bank which has failed to increase agricultural production in the country. Today, the farmers take the most expensive loans from this bank at a monstrous 18 per cent. Nepal Industrial Development Corporation (NIDC) promised to boost industrialisation but now all the money has gone down the drain in the industry sector. Going by these examples, what is the logic in opening ‘another bank’? c by getting funds from abroad at 1.75 per cent and give it to commercial banks, both state-owned and private sector, and ask them to invest in certain sectors. For example, they can give it to the banks at 5 per cent and ask them to invest it at 8 per cent. It will solve the problem of interest lending and fulfill fund requirement as well. The state should manage fund and monitor it accordingly instead of opening a bank and turning it into a business proposition. </span></span></div>',
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			'article_category_id' => '40',
			'title' => ''The Accessibility, Impact And Applicability Of Renewable Energy Is Ever  So Growing' (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong>Dr Jagan Nath Shrestha</strong> is a Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University. He is also the President of Nepal Solar Energy Society. In an interview with New Business Age, Dr Shrestha shared his views on the overall energy sector in Nepal and made a case for developing renewable energy in the wake of acute energy crisis plaguing the nation for quite some time now. Excerpts:</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><b>&nbsp;</b></span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How significant a role can renewable energy development play to minimise the effects of the current electricity crisis?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We are having a gala time right now because it’s the rainy season. But once monsoon is over, it will be back to square one — we will experience 14-15 hours of power outage again. As for renewable energy, I don’t see a problem from such energy if we need energy only for lighting purpose. Solar electricity costs far less now compared to even three years ago. Apart from that, we have had innovations in lighting over the decades that have helped us reduce energy consumption. These have helped in household energy consumption.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, the major impact of the current energy crisis is on industry, which needs a lot of energy. We need 1,100 gigawatt hours of energy for the industrial sector which is about 40 per cent of the total electricity produced by Nepal Electricity Authority (NEA). I do see a couple of options to save our industries though. NEA has close to 1.77 million subscribers of which 1.2 million are households that consume very little energy as in these households it is mostly used for lighting purpose only. If we could equip these households with 100W solar panels, we can easily save 500 gigawatt hours which can be diverted to industry. For this, we need appropriate policies. In this manner, we can save our industries from a complete collapse.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">If all the investment in setting up solar power system in the households is to come from the government, there will be problems. It will probably take billions of rupees to provide 100W solar panels to these 1.2 million households. But if these households are made ready to share some of the investment, the problem can be reduced to a great extent. The government, on its part, can help by providing tax relief and subsidy of some kind. This will definitely encourage many people to opt for solar energy. On the other hand, NEA won’t have to lose because the industries are there to make up for NEA’s loss of customers.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">But, let me caution that even though it looks very simple, its management may be complex. This calls for a blend of engineering technology and management art. Technologists or managers cannot produce results working separately, they should complement each other.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you see the priority given in Nepal to research and development (R&amp;D) in the energy sector to tackle existing energy shortage?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A lot of R&amp;D in the energy sector is being done in advanced countries on a continued basis. I cannot say how practical it is for a developing country like Nepal to do the same. What Nepal could probably do is to identify suitable energy resources for different areas and decentralise energy utilisation in the country. It is definitely a challenge for our universities and research institutions to conduct research for actualised energy applications. The outcome of this research should benefit the communities across the country and create employment. At the same time, such a study should look at protecting the environment. The energy must be efficiently used in a productive way.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What are the major impediments to the development of energy sector in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">There are two sides of the coin. We either have too many energy experts who know all about it but can’t agree with each other or we don’t know anything about energy development at all. I personally believe there are people in Nepal who have a lot of knowledge and ideas about the energy sector. However, they have not been able to work independently from the government or other agents. And, the characteristic of this group is disagreement among themselves. My request to these experts is: first ensure a position where we can generate about 3,000 MW for fulfilling the basic need of the households and of the industries. Once this objective is met, there is no harm on agreeing and disagreeing on numerous other counts. But till that time, all the experts must work out a consensus and stick to that. A disagreement among experts puts the government in a bind.&nbsp;</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you view the debate on whether to produce power for export or for consumption within the country?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Of course, our focus should be to first meet domestic needs,. But, if we do manage to produce surplus energy, we should definitely export. However, in today’s context, how can we export when we don’t have enough for ourselves? Take Bhutan’s example: it invites foreign countries to invest in its hydropower development and puts some conditions on such investments. It wants them to produce as much energy as possible but allows them to export only when the country’s internal needs are fully met. On the other hand, we are talking about exporting power while the power outage hours are ever increasing. Nepal has a problem with capital. It takes a lot of money to develop hydropower but Nepal does not have that money. An investor will definitely want to see how he can recover his investment. My opinion is that Nepal should be self-sufficient in power first. While not wanting to export is an extreme view, we also cannot talk about exporting everything that we produce.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How is the possibility of alternative energy sources meeting the industrial needs of Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The perception that renewable energy cannot help industries is wrong. It all depends on the size and location of an industry. A medium scale industry may require anything between 500 KW and 10 MW. If such an industrial unit is situated near a micro or mini hydro plant, its energy needs may be fulfilled. Similar may be the case if the industry is located near a windy place or where there is plenty of sunshine. We can ascertain the energy feasibility for an industry after taking its size, nature and location into account. Talking about solar electricity, an average of 4-5 kilowatt hour per square metre per day can be generated in Nepal. During daytime, we can use solar energy directly. It can also be stored and used in the night or when there is no sunshine.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Which one will be the most economical source of energy for a particular industry?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">After studying the energy needs of an industry, the most economical, beneficial and rewarding renewable energy option can be determined and worked upon. We must give priority to hydropower if it can be generated in a sustainable manner. Besides being economically feasible, hydropower can supply energy reliably when the concentrated power requirement is high. Comparatively, renewable energy may not be available when needed. Though, of course, it varies from case to case. There are many industries in the world which run completely on renewable energy. It is not only about solar or wind energy; it could be derived from biomass, agricultural and municipal waste also. The advanced countries rely on renewable energy because they care about environmental degradation, global warming, pollution etc. They focus on economic development, energy security and environment protection. Solar energy can be adequate for household needs, especially for lighting purposes. I know of households in Nepal who spend as much as Rs 800 per month on candles against Rs 80 for electricity. This is where micro-financing can come in and help such families to install solar panels worth Rs 3-4,000. The accessibility, impact and applicability of renewable energy are ever so growing because energy consumption of electronic devices has come down to from about 1/4th to 1/100th. Renewable energy has become a feasible option in urban areas as well. I personally feel that people have to become conscious and inculcate a habit of conserving energy. Every kilowatt hour of energy saved is equivalent to one kilowatt hour generated. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How important is bio-gas production given the amount of organic garbage generated in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.1pt;">Bio-gas potential is immense. More than 250,000 bio-gas plants have been established so far mostly in remote areas where there is no electricity. A six cubic-meter bio-gas plant can generate thermal energy equivalent to one standard LPG cylinder in about 24 days. For the sake of drawing a comparison, you can say that bio-gas is providing 250,000 LPG cylinders worth of energy in the country. This is certainly an achievement and we can take&nbsp;this even further. Cow dung was used for operating bio-gas plants earlier. But a lot of experimentation has led to a state where anything bio-degradable is equivalent to cow dung. Therefore, we can certainly increase the number of bio-gas plants in Nepal. More than 70 per cent of the waste coming out of big municipalities is bio-degradable. We must process this waste and generate energy rather than sending it to landfill areas. The problem is that the waste does not get collected in a segregated manner. We must find ways to sort bio-degradable waste right at the source. Keeping different garbage containers at the source can save segregation cost as the users will throw the ‘right waste’ in a designated container. Sewage treatment is a serious practice in most cities of the advanced countries. The water is drained out in the river after removing bio-degradable waste from it and purifying the water. Waste management is absolutely crucial in the present context. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What’s the current state on private sector investment in renewable energy? What can be done to make this more adequate and on a bigger scale?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Private sector invests in a sector where it sees a profit. Its investment in renewable energy will happen once there is a healthy competition in the energy sector. The government doles out billions of rupees to buy petroleum products when prices get higher whereas the subsidy to micro-levl hydropower, solar and wind energy projects, for example, pales in comparison. Given this scenario, private sector investment in renewable energy is a distant dream. The government is biased towards petroleum products instead of letting them compete with other energy sectors. There should be a level playing field. The subsidy given to proven renewable energy technology is inadequate and impacts adversely the opportunity for private sector investment. The government should proactively employ proven technologies instead of giving subsidies. For example, the price of electricity sold by NEA has not increased in the last decade or so. Renewable energy sources cannot provide power at the NEA’s low rates , which are highly subsidised. Therefore, it’s no surprise that the private sector does not want to invest in renewable energy. They won’t get the desired returns. We need to correct the situation and ensure a level playing field to lure the private sector to invest.</span></div>',
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			'description' => 'Dr Jagan Nath Shrestha is a Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University. He is also the President of Nepal Solar Energy............',
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	(int) 9 => array(
		'Article' => array(
			'id' => '410',
			'article_category_id' => '34',
			'title' => 'Bankers Call MoF, NRB Irresponsible (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 15pt;">B</span><span style="font-size: 9.5pt;">ankers have criticised Ministry of Finance (MoF) and Nepal Rastra Bank (NRB) for not fulfilling their duties even when the financial sector is passing through a crisis. They said they are disappointed with the functioning of MoF and NRB. Ashoke Rana President of Nepal Bankers Association complained, “NRB has always ignored our suggestions and our recommendations are never implemented.”</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Speaking at the interaction programme organised by Society of Economic Journalists - Nepal, Rana said that though suggestions are given to the Minister of Finance, nothing is done about them. He also alleged that NRB’s role has been biased. He claimed that NRB itself is in problem and lacks corporate governance. Rana also criticised NRB for not being able to regulate the banking and financial sector properly which led to the banking sector turning sick.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">He said that the steps taken to solve the problem of liquidity are incomplete and short-term. He claimed that recent steps taken by NRB to ease the liquidity crisis have only shifted the liquidity in the system but new liquidity has not been added. He also declared that inter-bank lending cannot be provided to sick development banks and finance companies.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Jhapat Bahadur Vohra, the then President of the Nepal Development Bankers’ Association, advised the government to bring special programme to address the liquidity issue through budget and monitory policy. He alleged that the faulty policy of the government shifted the capital to the informal sector. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Similarly Rajendra Man Shakya, President of Nepal Finance Companies’ Association, charged NRB with working against the institutions rather than in their favour. He alleged that NRB has intentionally put pressure on small companies. “If the NRB does not support these companies with a positive intention, there is no alternative but to close them down and submit the keys to the NRB,” he threatened.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Credit Rating Regulation Passed</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">T</span><span style="font-size: 9.5pt;">he Ministry of Finance has passed the Credit Rating Regulations. The draft prepared and sent by Securities Board of Nepal (SEBON) was approved by the ministry on June 24 with some amendments. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">After implementation of the regulation, the companies dealing with capital market instruments are obliged to be credit-rated.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">However, such agencies must have investment from a foreign company with at least five years of credit rating experience in international market and a minimum of Rs 20 million paid-up capital. Foreign partners can hold 25 to 75 per cent stake. Such agencies will rate companies issuing IPO, rights share, preference shares, debentures and other securities.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">FNCCI in Favour of Self Declaration of Wealth</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt;">F</span>ederation of Nepalese Chambers of Commerce and Industries (FNCCI) has officially proposed the government to bring in a scheme for voluntary declaration of wealth for the last time. FNCCI proposed such a scheme to the Ministry of Finance before implementing the laws on money laundering.</div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.25pt;">FNCCI proposed it while giving its views and suggestions for the budget. Similarly, FNCCI has also demanded to scrap the provision to produce the source of income while dealing with transations worth over Rs 1 million and buying and selling of properties above Rs 3 million.</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Ministry officials to collect loan repayment in Malaysia</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt;">A</span> team from the Ministry of Labour and Transport Management will go to Malaysia to collect loans provided to Nepali workers. These loans were provided in 2004 under Employment Promotion Programme and most of the borrowers are currently working in Malaysia. According to a source at the ministry, the team will visit companies where borrowers are currently working to collect the loan repayment. A six-member team will leave for Malaysia on June 27.</div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	The government had dispatched Rs 45 million as loan to indigenous, ethnic, Dalit, neglected, downtrodden and conflict victim communities. According to the source, after adding the interests, the loan amount has crossed Rs 60 million.&nbsp;</div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-align: center; text-indent: 0in;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">NDEX Begins &nbsp;Spot Contract</span></span></div>
<p style="text-align: justify;">
	<span style="font-size: 10pt; line-height: 115%;">N</span><span style="font-size: 11pt; line-height: 115%;">epal Derivatives Exchange (NDEX) has begun spot contract of gold and silver from June 27. NDEX has been working for two years on the future exchange of metals, energy and agriculture products. According to Santosh Pradhan, Chairman and Managing Director of NDEX, spot contract was commenced to diversify the investment of investors<span style="letter-spacing: -0.25pt;">.<br />
	</span></span></p>',
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			'description' => 'Bankers have criticised Ministry of Finance (MoF) and Nepal Rastra Bank (NRB) for not fulfilling their duties even when the financial sector is passing through a crisis. They said......',
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	(int) 10 => array(
		'Article' => array(
			'id' => '409',
			'article_category_id' => '34',
			'title' => 'Siddhartha’s Branchless Banking At Dailekh (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt;">S</span>iddhartha Bank Limited has kicked off its branchless ‘Easy’ banking service from Dailekh. The bank launched the service on June 15 by issuing a smart card with which banking transactions can be made. Chief District Officer of Dailekh, Bashudev Adhikari, inaugurated the new service.</div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.25pt;">The need for this service arose as the bank has to manage cash distribution under the World Food Programme’s Cash for Work. The bank said that the machine provided for the branchless banking at Dailekh identifies its customers by their fingerprints and photos, making the service secure and effective. With this service, people can access services like deposit, loan, remittance, money transfer, among others in the village itself. The bank also said that the social security allowance provided by the government can be distributed to people with this service.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">PLO Doubling Its Production</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt; letter-spacing: -0.05pt;">P</span><span style="letter-spacing: -0.05pt;">urbanchal Lube Oil Pvt Ltd (PLO) is doubling its production from the coming fiscal year. Bhola Dulal, Managing Director of the company, said that PLO is doubling its capacity as per the policy to increase production every year. He added, “We are also increasing production to make Nepal independent in lubricants and grease.”</span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The company produces&nbsp;one million litre of lubricants and 550,000 kilograms of grease. According to Dulal, PLO plans to produce three million kilograms of grease and lubricants from the next year. PLO is also preparing to add infrastructure to increase the production. Established with Rs 11 million investment in 2001, the company’s share capital has increased to Rs 150 million. The company claims that lubricants produced by the company under brand names PLO and Star covers 26 per cent of the market share. The company is producing over 200 types of products by importing raw materials mainly from Dubai, Quatar, Australia, Russia, Korea, India and Iran.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">SEBON Revamp Needs More Staff</span></span></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">Securities Board of Nepal (SEBON) has brought some changes to its organisational structure. Dr Surbir Paudyal, Chairman of SEBON, said that amendments were brought in to enhance its capacity. He also informed that amendments were made based on a report prepared by Securities Board of India (SEBI).</span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">In the old structure, there were seven departments and 13 sections while the new structure will have six departments and 23 sections. Currently, there are 38 employees while the new structure will have double the number of staff. SEBON’s announcement of a revamp comes at a time when there is widespread criticism of its effectiveness. SEBON has been given the rights to regulate Mutual Funds and Credit Rating Agencies, and while Commodities market is also likely to fall under its jurisdiction. Paudyal said that it would take some time for new the structure to come into effect.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Food Production Rises By 11%</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt; letter-spacing: -0.25pt;">F</span><span style="letter-spacing: -0.25pt;">ood production has increased this year by 11 per cent compared to the previous year. Dr Hari Dahal, Spokesperson at the Ministry of Agriculture and Cooperatives, said that with the growth in production, Nepal will have a food surplus of 110,000 thousand metric tonnes.Dahal said that last year the country witnessed a deficit of 330,000 metric tonnes of food grain. “In the current fiscal year, 8.61 million metric tonnes of food has been produced which is 11 per cent higher than the last year,” he revealed. In the previous year, 43 districts faced food-shortage while this year the number has come down to 38.</span></div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	According to Dahal, favourable climate, increased subsidy in chemical fertilizers, use of improved seeds and technology resulted in the increased production. Out of the total production, 367,000 metric tonnes will be used to produce feeds for livestock. There is a demand for 5.4 million metric tonnes of food grains annually.&nbsp;</div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">NTA Proposes To Use RTDF</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="">N</span><span style="font-size: 9.5pt;">epal Telecom Authority (NTA) has sought permission from the Ministry of Finance to use the funds collected in Rural Telecommunication Development Fund (RTDF). NTA Spokesperson Kailash Neupane said that the authority wants to use the amount collected for the development of telecommunication infrastructures. Rs 3.25 billion has been collected in the fund so far.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Neupane revealed, “With the amount, NTA is planning to issue tender to lay optical fibre in all 75 districts. As soon as the ministry approves the proposal, we will issue the tenders.” According to the telecommunication policy, the amount in fund can be used by NTA to finance infrastructure development. Telecommunication operators contribute two per cent of their income to the fund. Purushottam Khanal, Chief of Rural Telecommunication Department of NTA, said, “We are planning to extend information highway all over the country with the accumulated fund.”</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">NTA has planned to complete the development project in two phases for east and western parts of the country. Khanal revealed that NTA has earmarked Rs 2.59 billion for the eastern region while Rs 1.90 billion for the western region. As of now, 35 districts are linked by the optical fibre. NTA started collecting two per cent from the service providers since its establishment in 1994-95. Now, around Rs 1 billion is collected annually in the fund.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">20 Places Shortlisted for Mid-Hill Cities </span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">T</span><span style="font-size: 9.5pt;">he government has shortlisted 20 places along the proposed mid-hill highway to select ten of them as new cities. The selection was made by Ministry of Physical Planning and Construction ont he recommendation of&nbsp;Prof Dr Bhim Subedi, the consultant associated with city identification project. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Among the 20 shortlisted places three are from Accham including Rakam, Safebagar and Binayak. Similalry, three places of Rukum – Chaurjahari, Rukumkot and Musikot - are in the short list. Among the other places shortlisted are Fidim, Basantapur, Dumre, Ghurmi, Khurkot, Baireni-Galchhi, Diktel and Patan (Baitadi). Similarly, Burtibang, Dipayal,&nbsp;Dulegauda, Jarayotar (Bhojpur), Kurintar (Chitwan) and Mangaltar (Kavre) are likely to be chosen to be developed as cities.&nbsp; <br />
	</span></div>
<p style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Though there are more than one place included in the short list, Prof. Dr. Subedi said that his recommendation is to select at least two places from each development region to ensure proper regional balance.</span></p>',
			'published' => true,
			'created' => '2011-09-05',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Siddhartha Bank Limited has kicked off its branchless ‘Easy’ banking service from Dailekh. The bank launched the service on June 15 by issuing a smart card with which banking.....',
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	(int) 11 => array(
		'Article' => array(
			'id' => '408',
			'article_category_id' => '34',
			'title' => 'Birgunj SEZ Construction (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">T</span><span style="font-size: 9.5pt;">he construction work in the special economic zone (SEZ) of Birgunj is nearing completion. However, industrialists complain that the law needed for the operation of the SEZ which is hoped to boost exports, is still not enacted.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The SEZ is being constructed in an 832 bigha land that was once the premises of Birgunj Sugar Mills.&nbsp;The idea to establish a SEZ at this location was finalised seven years ago with an objective to increase export competitiveness of the country. The government began building the SEZ as per the Industrial Policy that promises various facilities to the exporters. However, the industrialists are arguing that the facilities should be provided also to the industrial units that produce goods for consumption within the country. Jagdish Agrawal, Chairman of Nimbus group of companies said the government policy to protect only the export-oriented industries is wrong. He said that in a country like Nepal where the internal production is not enough to meet the internal demand, there is no point in providing incentives only to production meant for export. He also suggested setting up economic zones specialised in certain products. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Om Prakash Sikaria, Former President of Birgunj Chamber of Commerce and Industry however, expressed hope that the SEZ would help in the development of export-oriented industries in and around Birgunj. However, he complained at the delay in introducing a separate law required for the operation of the SEZ.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Both Agrawal and Sikaria pointed out that the Birgunj SEZ will have problems as it is located away from the highway and the dry port. The Birgunj SEZ will have five blocks. Among them, block A will be the biggest with an area of 343 bigha. Block B will have 123 bigha while the area of block C will be 49 bigha. Similalry, block D will have 178 bigha and block E will be of 133 bigha.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169); letter-spacing: -0.6pt;">Maoists not for Majority Foreign Stake in Nepali Banks</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt; letter-spacing: -0.1pt;">U</span><span style="letter-spacing: -0.1pt;">CPN –Maoist Constituent Assembly (CA) members do not want branches of foreign banks in Nepal. They have started political lobbying saying the foreign banks established in Nepal will leave negative effects on the economy.</span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.15pt;">They have taken a stand not to allow foreign banks to own more than 49 per cent stakes in banks in Nepal. They want it to be included in the Banks and Financial Institution Act (BAFIA) which is in the process of amendment. “This is the issue of nationality,” said Narayan Prasad Sharma, a Maoist CA member and coordinator of BAFIA sub-committee. “We are determined to make provisions that only Nepali citizens and entities can hold a majority stake in Nepali banks,” he added. “It will be a threat to the national economy if 51 per cent stake is not held by the Nepalis,” he clarified. Another Maoist CA member Hari Roka said that the provision about the ownership of a foreign bank branch should not exceed 49 per cent and it should be mentioned in the law itself. However, the Maoist stand is against the World Trade Organisation (WTO) provisions. While being the member of WTO in 2004, Nepal had signed an agreement to allow foreign investments into the country from 2010.</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Panchakanya Operates On Full Capacity</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 13pt;">P</span><span style="font-size: 9.5pt;">anchakanya Steels, a Panchakanya Group company, has begun operating to its full capacity. Biswojay Pudasaini, Sales Manager of the company, said that the company has invested Rs 100 million to increase the output.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">With the upgrade in production, the company has begun producing 80 thousand metric tonnes of steel rods annually. Previously, only 60 tonnes of steel rods was produced in a year. Pudasaini claimed that with the increase in production, market share will also increase to 25 per cent. He said that government and foreign projects largely use Panchakanya Steels products.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Panchakanya began producing to its full capacity from the second week of June. According to Pudasaini, the company installed the latest technology after replacing the old one. However, he said that the product is yet to be supplied to the market. The company is producing rods from its plant at Bhairahawa.</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169); letter-spacing: -0.6pt;">Shiva Ram wins Surya Nepal Central Open</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">S</span><span style="font-size: 9.5pt;">hiva Ram Shrestha registered an eight-stroke victory over Sanjay Lama to take home the Surya Nepal Central Open title at the Gokarna Golf Club. He carded four-under 68 on the final day for a total of 10-under 278 to list the 11thcareer title, highest by a pro in the Nepali tour. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Similarly, Lama stood on second position with a total of two-under 286 after the final round score of five-under 67, while Mani Rai played a round of six-over 78 to score the third position at&nbsp;one-under 287. Samundra Giri and Ramesh Nagarkoti shared the fourth position at 289.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">In amateur category, Tashi Tsering claimed the trophy with a total score of 10-over 298 while Bikash Bogati came second at 299.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Out of the total cash purse of Rs 425,000 of the third event under the Surya Nepal Golf Tour 2011-12, Shiva Ram received Rs 90 thousand, while Sanjay bagged Rs 57 thousand. Similarly, third-placed Mani pocketed Rs 45 thousand. Dorji Sherpa, Vice-President of Gokarna Forest Resort and Ghana Shyam Thapa, former President of Nepal PGA handed over the prizes to the winners.&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Deposit Insurance Mandatory for Commercial Banks Too</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 10pt;">N</span>epal Rastra Bank (NRB) has started sending letters to commercial banks directing them to insure deposits up to Rs 200 thousand. “We have directed commercial banks to ensure deposit insurance in next fiscal year,” Bhaskar Mani Gyawali, Spokesperson of NRB, said.</div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	The central bank has said that deposit insurance has been made mandatory to safeguard the deposits of common depositors at a time when financial institutions are considered fragile. Gyawali said that deposit insurance is made extensive as a part of winning back confidence of depositors. Deposit insurance programme began this year starting from development banks, finance companies and microfinance banks. Till date, deposits of Rs 529.6 million of 1.4 million depositors in 138 financial institutions have been insured.&nbsp;</div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);">Eight Polytechnics in the Offing</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 13pt;">E</span><span style="font-size: 9.5pt;">ight new polytechnic institutes will be set up in different parts of the country with financial assistance from the Nepal government and some friendly countries. Total investments into all these institutions will add up to Rs 3.32 billion. These institutes will be established in Makwanpur, Rupandehi, Rautahat, Sarlahi, Kailali, Dhanusha, Chitwan and Kathmandu. Bishnu Koirala, Director of the Council for Technical Education and Vocational Training (CTEVT), said these establishments will be financed by national and foreign investments.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">With a financial assistance of Rs 450 million from the Indian government, a polytechnic will be set in&nbsp;Hetauda, Makwanpur, will be established with the support of Indian government. According to Koirala, Another polytechnic will be set with a Korean assistance of Rs 520 million in Butwol, Rupandehi. Polytechnic institutes in Janakpur, Chitwan, Kathmandu and Kailali will be set up with a government assistance of Rs 500 million for each of the institutes.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<p style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Similarly, nursing institutes will be set up in Gaur, Rautahat, Malangawa and Sarlahi with investments of Rs 150 million each by the Nepal Government. According to Koirala all these institutes will be ready in four years. </span></p>',
			'published' => true,
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			'keywords' => '',
			'description' => 'The construction work in the special economic zone (SEZ) of Birgunj is nearing completion. However, industrialists complain that the law needed for the operation of the SEZ which is....',
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	(int) 12 => array(
		'Article' => array(
			'id' => '407',
			'article_category_id' => '34',
			'title' => 'NEA Deceived On PPA Rate (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="">T</span><span style="font-size: 9.5pt;">he private sector has accused Nepal Electricity Authority (NEA) of deceiving electricity producers on the rate of Power Purchase Agreement (PPA). NEA has increased PPA rate by 20 per cent on projects up to 25 megawatts.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Previously, electricity producers could raise price up to nine times in PPA rate but now they can increase up to only five times. With this, the PPA increase rate said to be 20 per cent will actually be 10 per cent, said Gyanendra Lal Pradhan, a power producer, The government promised to increase PPA by 20 per cent in projects that will be completed within four years but NEA did not follow it.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The private sector is saying that with the latest increase, internal return rate will be lower than 12 per cent. Power producers are saying that nobody will be interested to borrow from banks at 16 per cent and invest for that rate of return. Independent Power Producers Association-Nepal (IPPAN) says that for 30 years, average PPA rate should be fixed at minimum Rs 6 per unit. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Dr Subarna Das Shrestha President of IPPAN said that due to high interest rate, ongoing projects are also on the verge of being scrapped.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 24pt; color: rgb(0, 92, 169);">Bhatbhateni Supermarket in Koteshwore</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14pt;">B</span>hatbhateni Supermarket and Departmental Store has opened its new outlet at Koteshwor from June 11. During the inauguration, Min Bahadur Gurung, Managing Director of Bhatbhateni, said that the new shopping centre is equipped with customer care desk, elevator and escalator for physically challenged people along with other modern amnesties.</div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	He said that 200 people are getting employment in the supermarket out of which 90 per cent are women. The five–storey supermarket has been built at an investment of Rs 500 million. Gurung revealed that within this fiscal year, new supermarkets will be established at Jawalakhel and Chuchepati. He said its chain outlet in Pokhara is under construction. He also revealed that supermarkets at Bhatbhateni and Maharajgunj register an annual turnover of Rs 2 billion.<br />
	 </div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 22pt; color: rgb(0, 92, 169);">Electricity Development Corp within 15 Days<br />
	<br />
	</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt; letter-spacing: -0.25pt;">T</span><span style="letter-spacing: -0.25pt;">he government has announced to set up Electricity Development Corporation within 15 days from June 8. Gokarna Bista, Minister of Energy, said, I will show by establishing the corporation within 15 days. He added, Committee formed for the inception of the corporation is working to complete the task within seven days.</span></div>
<div style="text-indent: 0in; text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.25pt;">Finance Minister Bharat Mohan Adhikari said that legal consultations are going on for setting up of the corporation. He also revealed that the corporation will not be controlled by the government but will be an independent unit. World Bank, Asian Development Bank, China Exim Bank and other international entities will be invited to invest in the company. Bista said that the seed capital of the corporation will be around Rs 7 to 15 billion. The government had proposed the establishment of Electricity Development Corporation after declaring power emergency in the country some months ago.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20px;"><span style="color: rgb(0, 92, 169);"><br />
	Siddhartha and NMB to Operate Mutual Fund<br />
	<br />
	</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt;">S</span>iddhartha Bank Limited has become the first company to file an application to the Securities Board of Nepal to work as a mutual fund. One year after the regulation came into force, first application for licence to run mutual fund has been registered.</div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.25pt;">Siddhartha Bank has begun the process of establishing a mutual fund under the name Siddhartha Mutual Fund. The bank is planning to establish fund under Siddhartha Asset Management, bank's sister organisation, according to Bhola Dhungana, Office Secretary of the bank. The fund will be established with Rs 100 million paid-up capital. The company has said it will begin operation as soon as it gets approval from the SEBON. Similarly, NMB Bank has also registered an application on SEBON to operate its NMB Mutual Fund. NMB has prepared necessary requirements for operating the mutual fund. The fund will be managed and operated by sister organisation of the company, NMB Capital Limited.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 24pt; color: rgb(0, 92, 169);"><br />
	Interbank Lending For Six Months</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12pt; letter-spacing: -0.25pt;">B</span><span style="letter-spacing: -0.25pt;">anks and Finance Companies can issue interbank loans for up to six months. Nepal Rastra Bank (NRB) has made a special provision for interbank loans with effect from June 27. Bhaskar Mani Gyawali, Spokesperson of NRB, said, To lower the pressure of liquidity, this special provision is made.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	Now, commercial banks, development banks and finance companies can issue loans to each other against the acceptable collateral. According to Gyawali, such lending will be for six months on the maximum.&nbsp;</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20pt; color: rgb(0, 92, 169);"><br />
	Progress in Amending Securities Transaction Act<br />
	<br />
	</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt;">T</span>he Securities Board of Nepal (SEBON) has presented a proposal to the Ministry of Finance (MoF) to amend the Securities Related Act 2007. Paristha Paudyal, Director at at the Board's Regulation Department said, the amendment is to accommodate a provision to authorise the Board to regulate the commodities exchanges as well.</div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<p style="text-align: justify;">
	<span style="font-size: 11pt; line-height: 115%;">In this year's budget, the government had announced to arrange for regulation of the commodities exchanges. Accordingly, a committee was formed with representatives from SEBON, MoF and commodities exchanges. The proposed draft amendment is based on the recommendation of the committee, said Paudyal. Currently, there are five exchange companies in operation while five more are trying to acquire license. </span></p>',
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			'description' => 'The private sector has accused Nepal Electricity Authority (NEA) of deceiving electricity producers on the rate of Power Purchase Agreement (PPA). NEA has increased PPA rate by 20 per.....',
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	(int) 13 => array(
		'Article' => array(
			'id' => '406',
			'article_category_id' => '34',
			'title' => 'Nimbus Trains 2,000 Poultry Farmers(july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	Nimbus has conducted around 34 free trainings this year to 2,000 poultry farmers in different parts of Nepal. It has been conducting these trainings on a monthly basis and has covered more than 50 districts of the country so far. The poultry farmers were trained on poultry farm management, bio security at small farms, commonly encountered poultry diseases, summer and winter management, summer stress, vaccination schedule etc.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	Nimbus has its own training cell which is headed by a veterinarian. It also has a mobile training center to train poultry and livestock farmers. It also conducts trainings for cattle farmers of Chitwan, Dhading and Tanahun in association with Practical Action.</div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-align: justify;">
	 </div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 22pt; color: rgb(0, 92, 169);">Sunrise to Invite&nbsp; Joint Venture</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 9pt;">S</span>unrise Bank Limited has decided to partner with an&nbsp;international bank. Moti Lal Dugar, Chairman of the Bank, said that the bank is talking with a well-known international bank for partnership. Dugar said that the partnership will be finalised soon. He opined it is better to invite foreign invest rather than merge with a national bank. So, the company is bringing in a strategic partner. He also revealed that the bank is soon launching international visa credit card. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.3pt;">&nbsp;</span></div>
<div style="text-align: justify;">
	<hr />
</div>
<div style="text-align: justify;">
	 </div>
<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 20pt; color: rgb(0, 92, 169);">Hyundai’s new brand Motto</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Hyundai Motor Company, the world’s fastest-growing automotive company by brand, officially announced its new brand direction and statement at the 2011 North American International Auto Show in Detroit. </span></div>
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	<span style="font-size: 9.5pt;">The new brand statement “New Thinking. New Possibilities.” encompasses Hyundai’s new brand concept, “Modern Premium”, which aims to provide customers with emotional value and experiences beyond expectations, says the company. “It’s bigger, smarter and driven by the desire to share stylish, high quality and efficient vehicles with everyone” it says and adds: “New Thinking means challenging convention and pushing boundaries. And New Possibilities means coming up with more forward-thinking ideas and solutions. Hyundai’s new way of thinking is to share premium value with more people and make new possibilities for people and planet by constantly generating new ideas. It gives an opportunity to take a look at the new vision for the future of Hyundai.”</span></div>
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	<span style="font-size: 9.5pt;">Today, customers do not believe that expensive cars with unnecessary technology are premium. They no longer want to simply show off their status. Instead, they want their core needs fulfilled at an accessible price and with a car that exceeds their expectations; a car that reflects their values and the times in which they live. “Hyundai is not just a company that makes cars. Hyundai is a company that creates new possibilities. Our goal is not to be the biggest car company. Our goal is to be the most loved automotive company on the planet, and to be a trusted lifetime partner of our owners,” said Vice Chairman Chung, Hyundai Motor Company.</span></div>
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<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">In the most basic sense, a car is just a way to get from point A to B. But in reality, it is a place for much more - first dates, bonding time with the kids, quiet time alone. It’s a great place to store your gear, enjoy great music, spend a quick moment studying before an exam, or even take a nap or have a meal. “Hyundai’s goal is to create new values and a new culture that will upgrade the in-vehicle experience. Hyundai makes cars to enhance quality of people’s life’, says the company. </span></div>
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Nirakar Shrestha, MD of Laxmi InterContinental says: “With the global introduction of Hyundai Motor Company’s new brand statement “New Thinking. New Possibilities.”, we here at Laxmi InterContinental are pleased to implement the overall brand philosophy in Nepal. The new thinking of HMC relates to the new benefits that it will provide for its customers enjoyment. It seeks to provide additional values sought by society today (enabling more people to enjoy premium values at a fair price). HMC refers these new values as New Premium, Hyundai Premium, or Modern Premium. And Laxmi InterContinental is committed to deliver truly Hyundai Premium along with other services to its valued customers.”</span></div>
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	<hr />
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<div style="text-indent: 0in; text-align: center;">
	<span style="font-size: 22pt; color: rgb(0, 92, 169);">HYUNDAI Premiums in Nepal</span></div>
<div style="margin-bottom: 11.35pt; text-align: justify;">
	Laxmi InterContinental P. Ltd.; sole distributor of Hyundai for Nepal, revealed the new Sonata and Tucson recently.</div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 13.5pt;">Tucson</span></div>
<div style="margin-bottom: 11.35pt; text-align: justify;">
	First impression counts for a lot. Set eyes on the new Hyundai Tucson and we bet you’ll find your second and third glances are just as rewarding. Synthesis of flawless, cutting edge design, embodying style in every curve, sporty and powerful, yet, refined and relaxed. And when it comes to safety and security, the new Tucson is all equipped that gives you all the assurance you need and even beyond your expectation.</div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 13.5pt;">Sonata</span></div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.05pt;">Within seconds of getting acquainted with a Sonata, you will begin to wonder if it’s still today. The breath taking exterior design with rigid surface and structure that creates impression of constant, graceful motion. Inside, you will be surrounded by features capable of doing things that will transform your expectation of what a car can do. Indeed, everything about the Sonata - its sharp looks, next generation technology, and uncommon luxury and style - speaks uncannily of tomorrow.</span></div>',
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			'title' => 'Feedback July 2011',
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	<span style="font-size:12px;"><span style="color: black;"><br />
	<strong>Reality’s Time Has Not Come Yet</strong> <br />
	<br />
	T</span><span style="color: black;">here is a certainly a mismatch between the housing options available and the demand for them in the Kathmandu valley and elsewhere in the country. By any standards, there are more people looking to own a house than the number of houses ready and being built for the prospective customers. But the real problem is high cost of the housing units and poor financing options available. As everybody is talking today, the banks and financial institutions have lent so much to the realty sector that the very existence of the banks and financial institutions has come under threat.<br />
	<br />
	At one of time, it was believed that some banks have exposure to the realty sector to the extent of 85 per cent. As experts will tell, recovering money from the realty sector is time-consuming and depends on many factors, especially financial and political stability in the country. Given the fragile economy and the informal nature of banking and finance in the country due to fluid political situation, it is hard to find buyers for apartments costing upwards of Rs 5 million. Owning an apartment is traditionally not the first choice of the people; they would prefer buying an independent unit. That's a fact.<br />
	<br />
	In line with trends outside, Nepal too has a number of realty companies ready with projects but most of them do not seem based on firm fundamentals.<br />
	<br />
	For example, the entire range of suburb within the Kathmandu valley in the three districts of Kathmandu, Bhaktapur and Lalitpur, there are any number of residential area being developed out of agricultural lands, by demolishing hills and moulds into plain land and by creating plots for independent housing. The cost to develop a property for a modern residential project is exorbitant and the companies are not finding enough buyers at the astronomical rates at which these plots are on sale. These plots were developed with the money of the banks and financial institutes but they now lie disused as there are fewer takers for them in view of a retarding economy. </span></span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><br />
	</span></div>
<div>
	<span style="font-size:12px;"><span style="line-height: 115%; color: black;">The property business in the country can take off only when the economy shows a constant growth over a period of 5 to 10 years at least. Expecting exciting moments in the realty business at this time is tantamount to wrong calculations.<br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><b>- Sanjay Neupane</b></span></div>
<div>
	<span style="font-size:12px;"><b><span style="line-height: 115%;">Bhaktapur</span></b></span></div>
<div>
	<span style="font-size:12px;"><b>&nbsp;<br />
	</b></span></div>
<div>
	<span style="font-size:12px;"><b>&nbsp;</b></span></div>
<hr />
<div style="margin-bottom: 0.0001pt; vertical-align: middle;">
	<strong><span style="font-size:12px;"><br />
	Kudos to &nbsp;Smart Telecom<br />
	<br />
	</span></strong></div>
<div style="text-indent: 0in;">
	<span style="font-size:12px;">The interview with Subhas Bajracharya, CEO, Smart Telecom Pvt Ltd, in June 2011 issue of New Business Age was quite informative and in-depth. The fact that Smart Telecom has already made its services available in 40 districts in the country is worth praising. It is not easy to create telecom infrastructure in the rural parts of our country because of difficult topography and poor road infrastructure. Smart Telecom has really shown commitment and a sense of purpose but by all counts its formidable presence in the rural telecom sector has not been complemented by the government. Telecom policy in the country is all about earning more revenues without any incentive for any worthwhile progress made by the telecom companies. Bajracharya should take heart and know that the investments that his company has made in terms of capital and commitment will win him the market share as well not only in existing markets but also in the new markets. But for all that he will have to wait for some time till the government comes out with a more plausible policy.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><b>- Pradeep Rimal</b></span></div>
<div>
	<span style="font-size:12px;"><b><span style="line-height: 115%;">Ghattekulo</span></b></span></div>
<div>
	<span style="font-size:12px;"><b>&nbsp;</b></span></div>
<div>
	<span style="font-size:12px;"><b>&nbsp;</b></span></div>
<hr />
<div style="text-indent: 0in;">
	<strong><span style="font-size:12px;"><br />
	For Higher FDI, &nbsp;Stronger GDP a Must<br />
	<br />
	</span></strong></div>
<div style="text-indent: 0in;">
	<span style="font-size:12px;">There is no denying the fact that the country needs more FDIs and that would come to the country in due course, that is when the political situation becomes normal and economy is firmly grounded.&nbsp;But for both, the country needs to stabilize itself first. And, some serious thinking has to be done as to how to increase the GDP from the current level to say some 10 times bigger in the short term. Only a robust GDP can attract FDIs. FDIs come seeking profit and if the economy is not in a position to return that profit, FDIs are known to have flown out of the country as well. In that case, it harms more than it benefits. Trade regime between Nepal-India and Nepal-China is a far cry from what the giant neighbours are witnessing. Nepali economy needs to be harmonized with the economies of its neighbours to reap the benefits of the gigantic progress being made by the two countries. That alone can guarantee a jump-start to both the economy and FDI inflow.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size:12px;"><b>- Sanatan Dhakal</b></span></div>
<div>
	<span style="font-size:12px;"><b><span style="line-height: 115%;">Koteshwor<br />
	<br />
	<br />
	<br />
	</span></b></span></div>',
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