Dr Thomas Gass

Nov 30, -0001 0 15 minutes 33 seconds to read

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Changing Face Of Crisis (july 2011)

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Spirituality In Heart, Business In Mind

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A Volte-face On Hydropower Development July 2011

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CPVC Pipes From Panchakanya Plast(june 2011)

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EU Ban Affects Ayurved Export(june 2011)

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Ad And Media Expo Concludes(june 2011)

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Financial Closure Of Upper Tamakoshi(june 2011)

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URBAN HOUSING HOME IN HIGH-rises(june 2011)

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Downtown Housing Company(june 2011)

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Housing In BirgunjSlow Growth, High Hopes(june 2011)

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Growing Housingin Pokhara(june 2011)

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We Need To Reinvigorate The Real Estate Climate (june 2011)

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Developers-built Housing Market Is On The Rise (june 2011)

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No Laughing Matter

The Sweet Rewards of Power

By Madan Lamsal

. . .
read more »

NEPSE

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			'title' => 'Dr Thomas Gass',
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			'content' => '<p>
	<span style="font-size: 14px;"><strong><br />
	</strong></span></p>
<p>
	<span style="font-size:14px;"><strong>The Taxpayers Of This Country Are The Major Donors To Nepal (july 2011)</strong></span></p>
<p>
	<br />
	 </p>
<div style="text-align: justify;">
	<span style="font-size: 12px;"><strong><img align="left" alt="taxpayers" border="1" height="195" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/interview(4).jpg" style="width: 139px; height: 195px;margin:10px;padding:10px;" vspace="5" width="139" />Dr Thomas Gass</strong> is the first residential Ambassador of Switzerland to Nepal. He was previously Switzerland's ambassador to the United Nations in New York and spent five years there prior to arriving in Nepal. He holds a PhD in biology and began his career with the Swiss Agency for Development and Cooperation (SDC) in 1988. He has held positions in the Swiss civil service and with the United Nations. Gass was the Vice-President of the executive board of the United Nations Development Programme and United Nations Population Fund. He has also lived in Guyana and worked in Africa and the former Soviet Union. In an interview with Pinaki Roy of <i>New Business Age</i>, Gass discussed a diverse range of issues from Swiss cooperation and its impact on the Nepali society to the constitution writing process in Nepal. Excerpts:<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><strong>Switzerland is among the few countries that initiated financial assistance to Nepal since 1959. How do you evaluate Swiss cooperation over the last 52 years?<br />
	<br />
	<br />
	</strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">I would say that this has been an extremely fruitful partnership that has encompassed mutual learning and has evolved over the time as any working partnership should. Initially, Switzerland implemented many projects directly and we had up to 100 experts working here at a time in the 1970s. We work differently today as we place more emphasis on the leadership and the coordination of the government and make use of national capacities for our projects here. We work through the ministries, INGOs and the local NGOs among others.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">One of your primary objectives has been to build rural infrastructure, particularly, the suspension bridges. Do you systematically assess the economic impact of these bridges constructed mainly by Swiss support?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">Yes, we do systematically assess the impact of our projects. But we don't assess these projects only in an economic way; we also look at them from a social and inclusion point of view. Over 1,600 trail bridges have been built and 3,500 maintained in the last 10 years. As a result, over 4.8 million people have better access to services through safer river crossings. On an average, each bridge has reduced walking distance by 2.5 hours and about 4 million person-days of employment have been generated through these bridges. These bridges are turnkey projects constructed by the villagers and the community. In the last four years alone, school attendance has risen by 22-27 per cent and visits to health centres have increased by 20 per cent on an average in places close to the newly built bridges. So, these are the kind of evaluations that we have. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">Forestry is a major area that you have been contributing to. However, the Swiss government has diverted its attention from forestry to other areas of late. What could be the possible reasons for this?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">We certainly have invested a great deal of time and resources in forestry and it's true that we have been focusing on some other areas too. However, let me correct you by saying that we are still interested in forestry. We are and will continue to invest in forestry. To give you the figures, we have been supporting the previously-funded forest project since 1991 which will end this year. The project has resulted in reversed deforestation for 185,000 hectares of government-managed forests. It has also improved the condition for 135,000 hectares of community-managed forests in the three districts where SDC [Swiss Development Corporation] has been active. Additionally, increased availability of forest products has contributed to sustainable livelihood of 145,000 families and 16,000 person-days of forest based employment have been generated for the poor. Strong multi-stakeholders mechanism and participation from empowered community groups were crucial while achieving these results.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">We are currently planning and preparing a multi-stakeholder forest programme together with DFID and Finland with the Ministry of Forest and Soil Conservation in a supporting and facilitating role. It will build on our respective experiences and extend its impact to a great number of districts spanning over 10 years. The programme will cover about 60-65 districts of the total 75 districts in Nepal. Therefore, I would say that our presence in the forestry sector is probably more than ever.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">You have tried to link Swiss contribution with entrepreneurship, for example, the employment fund. As a drastic departure, you have chosen to work with private companies as trainers. How successful has the idea been?<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">We have been engaged in vocational skill training since the 1950s with cheese and carpet production. We then moved into more formal vocational training with technical schools such as the one in Balaju.&nbsp;We were also associated with the Technical School in Jiri in the 1980s and the Training Institute for Technical Instruction (TITI) in the 1990s. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">This cooperation changed over the time because many more national capacities were becoming available in the formal training sector. At the same time, we realised that we were reaching only a small number of trainees through formal training who could perhaps afford on their own. We started partnering with private entities as training providers to reach the poorer segment of the society as well. It is easier to target disadvantaged and marginalised groups through our new approach. The onus is now on the training provider to find the first employment for the trainees. We feel that vocational training responds more directly to the needs of the labour market through this approach. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;"><br />
	The Swiss government was supporting the promotion of good governance. Do you think it has contributed towards transformation of government practices in Nepal?<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">The money that Switzerland invests into its development cooperation with Nepal comes from the Swiss tax payers. It is therefore absolutely essential that we give adequate attention to good governance and fiduciary management of the projects funded by us. And, we hope that it has a positive influence on the communities and the ministries we work with. Like any other country, Nepal requires good governance across the board from the villages to the central government and from the local associations to the major national parties. Our influence is obviously less at these levels. It is the Nepali people that have to hold their politicians and administration accountable for their respective actions. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">On our part, we have promoted and tried to practise public hearings and public accountability for our projects at the local and district levels. We have seen that there are concerns to begin with while we practise accountability. However, all parties are satisfied after the entire exercise is over. The local and district administrations also realise that such practices actually strengthen their credibility. At the same time, the population too gains a lot of confidence. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">You have been working with the same partner, Pro Public, for over 15 years now. How do you justify this association for such a long period of time?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">Yes, we have had a very long cooperation for sure. But one has to acknowledge that Pro Public has a great deal of experience. They have been in the field for a long time and have been in many places so we have to give them credit for that. The current phase of the project with Pro Public is coming to an end this year and we haven't yet decided who will be our future partner. We believe that we need support from an independent organisation that helps the public hand to build up its credibility through public hearing. It does not necessarily have to be advocacy or accusing the administration on its weak points. It is more about building the capacity and confidence to face the public by being transparent. There is a niche for these kinds of activities in every district which makes our projects and the work of the local administration so much more effective.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">Some of your projects like Jiri Multi-Purpose Development Project have been completely abandoned. What should Nepal do to make such projects and development sustainable?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">Well, the question is not about what should Nepal do. It's rather about what should the development partners both Nepali and Foreign do. First, the projects have to respond to a real need in order to be sustainable. They need to respond to the demand by the beneficiaries and these needs may evolve over a period of time because the beneficiaries and their aspirations evolve. Second, the projects also have to be of appropriate size and be constantly adaptive. It is because the counterparts the national entities can take over some of the responsibilities of the projects in a more convincing way. Therefore, these are the two elements that help projects become sustainable. The projects are the tools to deliver certain services that need to continue. </span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">The issue of inclusion is in the forefront of development debate lately. Is this the right approach given that it would further consolidate caste as ethnic identity just to get the&nbsp; </span></strong><strong><span style="font-size: 12px;">desired benefits?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;"><img align="left" alt="thomas" border="1" height="244" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/img1(2).jpg" style="margin: 10px; padding: 10px;" vspace="5" width="400" /></span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">The benefits of social and economic development frequently do not get distributed equitably in societies that are very diverse and strongly compartmentalised. This leads to frustration and conflict. Invariably, there is an accumulation of wealth and power by those who already have it rather by the ones who don't have it. This has been experienced in many countries and it has been experienced in Nepal too.&nbsp;The other problem is that the potential of the diversity of a nation is not unleashed. Imagine a family, village or a country where all the decisions are taken only by men. For example, I can't imagine not involving my wife in decision making. She may have many skills, knowledge and competencies that I lack. The same is true for a country where a single ethnic or linguistic community is controlling all the decisions. This way, you are invariably reducing the development potential of your country to a fraction of what it could be otherwise.&nbsp;</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">Given the climate change, how do you think issues like bio-diversity can be addressed?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">The problem with climate change is that we don't really know the end effect especially in a country like Nepal where there are so many ecological zones. Some places might become drier and others wetter so there could be a lot of fluctuation. The diversity in nature is the insurance policy against change. That's why nature has been created the way it is, with a lot of diversity where one plant may die and another may survive. The diversity has to be maintained in order to adapt to the changes that we don't know about. And therefore, natural bio-diversity and agricultural bio-diversity have to be promoted very actively keeping the climate change in mind. Farmers in Nepal who live in very diverse environments can help maintain and cultivate agricultural bio-diversity that would help the country resist and be more resilient to climate change and its effects. But the community and the country as a whole has to recognise that service. It's not just the food production, it goes beyond that. This is a little complicated&nbsp; it means that you have to start thinking about environmental services by getting the farmers some kind of support that is more than just the minimum payment. <br />
	<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">The Swiss government is the major donor towards supporting constitution writing process but it doesn't seem to have yielded any results. What do you think is the problem with constitution writing in Nepal?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">The taxpayers of this country are the major donors to Nepal. They are the ones who pay the salaries of the parliamentarians and indirectly, the politicians. Therefore, the investment of the international community cannot be compared with the investment of the people of this country in terms of time and resources. Changing the direction and design of a country takes time. It requires a lot of focus and motivation and the need to make compromises. This is in the hands of the Nepali politicians who have to come together for an agreement and then be able to share their findings with the general population at large to achieve a consensus. The current generation of the politicians owe this to the country. The constitution in my country also took a long time. We can be here as friends, nudging and criticising but in a constructive and positive way. We certainly hope that the constitution writing process in Nepal will now move forward. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">Many people think that Swiss federalism model is appropriate for Nepal. How do you view this idea?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">I strongly believe that Nepal needs to find its own model. What I can say though is that Swiss federalism is not about autonomy and independence. It is about how our cantons (provinces in your case) can work together building on reciprocal strengths and diversity to work in a united way for a stronger country. That requires a lot of compromises. One can never see one's own problems only. The provinces in my country need each other and I assume that it would be the same in Nepal. The policy makers can have a positive bias towards their own provinces. Previously, anyone who had a vision and was ambitious for Nepal focused on Kathmandu. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 12px;"><span style="line-height: 115%;">In the future, the people would like to be identified by their respective regions and will be looking for strengths and resource development of their own provinces. The sense of pride for belonging to a certain province will come into play which was not there earlier. It helps but you can never lose out of perspective that a province is not viable by itself and requires to be complemented by other provinces. Therefore, everyone needs to understand that Nepal, as a single entity, needs to establish credibility at the international level. <br />
	<br />
	<br />
	<br />
	</span></span></div>',
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			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="color: rgb(178, 34, 34);"><i><span style="font-size: 8pt; line-height: 120%;"><img align="left" alt="madan" border="1" height="108" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/img2(3).jpg" style="width: 90px; height: 108px;margin:10px;padding:10px;" vspace="5" width="90" />By Madan Lamsal<br />
	<br />
	<br />
	</span></i></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 10.5pt;">T</span><span style="font-size: 9.5pt;">hese days, if you encounter any crestfallen wo/man with faded pulchritude and desperate to reach somewhere sooner, s/he could easily be a banker. With the collapse of BFIs in a row, even the CEO of healthiest of these institutions is sacred to the hilt. Simply because, before one could explain the robustness of his or her institutions, things are seen going out of hand of these expert managers.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<br />
	<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;">Except those under the government raincoat, almost all BFIs are feeling the pinch of acid-rain, some term it liquidity- and others lucre-dity-driven crisis. And every crisis is a god-sent lottery to some, and so called older and large banks are now enjoying the unprecedented deposit flow when their smaller and younger fellows gasp for life.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<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 lifestyle, personality and approach of the CEOs of many of these BFIs have completely changed. They have ceased to wear tie. Harrods tweed has been replaced by Bangkok boutique. Razor sharp creases of the dress have disappeared and, instead of driving individual cars, many senior executives of an institution are seen stacked in single vehicle. They are not doing it for their security by feigning move-incognito, but all of them are putting these sincere efforts to support the Nepal Rastra Bank Governor's objectives to bring down the national inflation to a single digit. In cocktails, they hardly speak. Even if they do, they just mew. Their eyes are anxious not to bump with any guy from Baluwatar, by chance. Who knows, a prestigious banker today may be arrested by the police on the criminal charges of elbowing a central banker in a cocktail party?</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<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="laughing" border="1" height="248" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/img(5).jpg" style="margin:10px;padding:10px;" vspace="5" width="350" />Early in the morning, these CEOs dread to read the newspapers. They feel the unusual urge to pee while reading the news about the rampage and killings by wild elephants in the districts like Jhapa. They hallucinate that snores and roars of the Jhapali animals is also coming out of the Baluwatar woods, perhaps without knowing the Jhapa influence in the present day Nepali financial sector. Some CEOs are also scared that, regardless of the financial credentials of their institution, they would be chased by one powerful Jhapali to apparently to install another Jhapali in the CEOs position, in addition to a couple of peripheral advisors to add the operational cost of the purportedly crumbling institution. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">But there are more than one solutions to these woes of poor CEOs. First, they must confess that they didnâ€™t know any previous governor or deputy governor of the central bank to vindicate an unflinching loyalty to the present central bank leadership. Second, even if they knew some, they continuously profess that all former Rastra Bank officials including the governor were unprofessional, unqualified and dirty people; and responsible for present mess in the financial system. Also remember to communicate your allegiance to the party that made history by launching the Jhapa andolan. And, donâ€™t commit foolish mistake of visiting new bungalow of the governor worth crores as that may prove something else to his principled credentials as a true proletariat. These tips will surely help you if not your institution.<br />
	<br />
	<br />
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	</span></div>',
			'published' => true,
			'created' => '2011-08-22',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'These days, if you encounter any crestfallen wo/man with faded pulchritude and desperate to reach somewhere sooner, s/he could easily be a banker. With the collapse of BFIs in a.....',
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	(int) 2 => array(
		'Article' => array(
			'id' => '386',
			'article_category_id' => '47',
			'title' => 'Spirituality In Heart, Business In Mind',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="color:#000;"><span style="font-size: 12px;"><img align="left" alt="suresh" border="3" height="334" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/suresh_kumar_basnet.jpg" style="width: 269px; height: 334px;margin:10px;padding:10px;" vspace="2" width="269" /></span></span></div>
<div style="text-align: justify;">
	<span style="color:#000;"><span style="font-size: 12px;">Suresh Kumar Basnet began his business with the belief that if one has the capacity and acumen for marketing, one can sell just anything. From a budding businessman in 1979 to NCC president today, he has seen success and knows it does not come easy.<br />
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<div align="center" style="text-align: center; text-indent: 0in;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
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<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><b><span style="line-height: 120%;">Suresh Kumar Basnet</span></b></span></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><span style="line-height: 120%;">President</span></span></span></div>
<div>
	<span style="color:#000;"><span style="font-size: 12px;"><span style="line-height: 115%;">Nepal Chamber of Commerce (NCC)</span></span></span></div>
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<div style="text-indent: 0in;">
	<span style="color:#000;"><span style="font-size: 12px;"><strong><i>By </i>Gaurav Aryal<br />
	<br />
	</strong></span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">Suresh Kumar Basnet stepped into the world of business with Rs 7,000 back in 1979. For Basnet, that was a big money managed all by himself to start his business. At that time, he saw demand for fancy clothes, watches, photography equipment, typewriters in the cities of the plain like Bhairahawa, Biratnagar and other places. I supplied those goods from the wholesalers in Kathmandu to these cities,he shares the story behind the inception of his business and career. Basnet gained experience and knowledge about his business with time from the people in his fraternity. He was not hesitant to shift to those goods and businesses that offered lucrative returns.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
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	<span style="color:#000;"><span style="font-size: 12px;">Today, Basnet is the President of Nepal Chamber of Commerce (NCC), the guardian association of Nepali industries as well as small, medium and large companies. Basnet has been in NCC for 18 years now. Beginning with the working committee member, he has climbed the ladder to the apex position. Apart from the NCC President , he is a business person heading a group of companies with interests in export and production of pashmina, textile, silver jewellery, handicraft, copper goods, gold-plated statues, carpets and mineral water among others.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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	<span style="color:#000;"><span style="font-size: 12px;">At present, he directly owns a range of business enterprises including Basnyat Company Limited, Sujit Concern and Brothers, Om Shanti Pashmina Udyog and Jal Pure Drinking Water and Beverage Industry. He is also involved with Kathmandu Upatyaka Khanepani Limited (KUKL) and Sunrise Bank in different capacities.</span></span></div>
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<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><strong>Early Life<br />
	<br />
	</strong></span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">Basnet was born in Kathmandu in 1955. His family was a working class family. It was around 1960 that his family bought a piece of land in Chitwan. Young Basnet shifted to Chitwan in 1962 where he completed his school education. We had an extended family and since we were financially weak we decided to shift to Chitwan, Basnet clarifies. He adds, There I learnt to be a hard-working man. I took to farming, did household chores and saw myself being shifted from one place to another with the passage of time. He emotionally says that in Chitwan he could realise what the hardship is and what the joys are the two realities of life.<br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">Basnet proudly claims that in his student days, he was quite a good student. Apart from his studies, he was fond of playing football, volleyball, badminton and chess. He was counted as one of the best players of the district those days.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
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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="color:#000;"><span style="font-size: 12px;">After graduating the School Leaving Certificate, he came back to Kathmandu with a dream of becoming a doctor. To pursue his dream, he joined Amrit Science Campus. However he was forced to take up physics as he could not study Biology in his high school in the absence of a biology teacher. Basnet largely relied on lectures as books were so rare and expensive those days. He recalls how he had to wait for months for a book in the college library. During his exam time, his fate took a different turn. He fainted while appearing for his exams. I had to leave my studies for around six months because of my illness. When I returned to college, my principal said that I have missed the course and asked me to start afresh next year,Basnet says. Meanwhile, his relatives advised him to change the subject and&nbsp;study commerce rather than waiting for the next session.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><img align="right" alt="" border="3" height="565" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/suresh_kumar_basnet1.jpg" style="margin:10px;padding:10px;" vspace="2" width="350" />Basnet quietly obeyed them and joined Public Youth Campus where he completed his ICom. He later completed his graduation from Shankardev Campus in business studies. While pursuing his business studies, Basnet somewhere felt that he should polish his entrepreneur skills and start doing something on his own.I established a firm for import-export, he shares his early days. Basnet picked up business fundamentals from his brother's friend who ran a company in Putalisadak. Basnet was around 26 when he started his business. A lot of hard work in the years that followed earned me vital business contacts that helped me in my export-import business, he reveals. At that time Basnet used to deal with the third-country goods but he claims he never dealt with cheap goods from Khasa, China. He opened an LC account to make his export-import business a formal one.&nbsp;Basnet usually dealt in items with seasonal demands like dry fruits and readymade garments during major festivals like Dashain and Tihar. Apart from that he also tried dealing with photography goods, motor parts, ball bearings and later on even in vehicles. He admits that often he had to bear losses for not having enough experience and expertise. He adds, I thought of getting into industries. I was into garments, carpet, and pashmina. In the pashmina business, I incurred losses as well as made profits over the years His markets for these products were Japan, Korea and USA. He shares, I gained experience by doing the things. I learnt the nitty-gritty of business and kept on reworking on my strategies. I always received support from my family. My better-half is just like my business partner.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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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="color:#000;"><span style="font-size: 12px;">Basnet has passed three decades in the business world. He thinks profit and loss are defined by the nature of business, time and environment, politics, dedication to work and a touch of luck. Sometimes despite hard work, enough investment and favourable time, some circumstances and luck may lead to failure,Basnet opines. Apart from profit and loss, business has taught me honesty, duty to pay taxes to the state, and to have patience and take risk, he says.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
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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="color:#000;"><span style="font-size: 12px;">Today Basnet has stopped importing and focuses only on export. I am looking for ways to export our products to other countries. I am targeting the US market though recession has bruised&nbsp;its demands. However, I have not stopped exporting pashmina, silver jewellery, handicraft, copper goods, small statues and carpets, he expresses determination. Basnet is looking forward to investing in hydroelectricity too. I am also searching for feasible products that can be produced with local raw materials and which has the market prospect within Nepal like dairy products,he adds.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
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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="color:#000;"><span style="font-size: 12px;">When he began his business, Basnet managed the investment from his own sources but today he feels the presence of commercial banks has eased financing for any project. About managing capital, he says he revolves the fund between industries and companies as and when required.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
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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="color:#000;"><span style="font-size: 12px;">About managing his companies, Basnet says that management works are done by dedicated staff and managers of the respective departments are given full authority. He says he does not interfere in their work&nbsp;except for some monitoring and policy guidelines. However, Basnet thinks the investor also has to play the role of a manager.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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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="color:#000;"><span style="font-size: 12px;">Basnet believes in having friendly relationship with employees. After working for a long time, some sense of brotherhood develops among the staff,he opines. He says employees salary is based on the ratio of profit made by the company but he ensures that people working in his companies are well taken care of in all respects including financial distress.We respect honesty, dedication and hard work of employees so that they can develop a sense of ownership towards their workplace.</span></span></div>
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	<span style="color:#000;"><span style="font-size: 12px;"><strong>Family Life<br />
	<br />
	</strong></span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">Basnet feels that he struggled throughout his life alone. His sons have always stayed away from home either for their studies or for their job. But we always have a cordial relationship with each other. I have given time to my family as much as possible. Previously, we used to spend quality time together at least once a month and every winter we used to visit some places within Nepal, he revealed the way he takes out time for his family. He thinks giving time to family means giving time to self also.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
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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="color:#000;"><span style="font-size: 12px;">He is satisfied with what he has achieved so far and has nothing to regret. At the end of the day, experience that he gathered maters to him much than the the status of profit and loss accounts. As any other human being, I also thought of making money but for that I never compromised with the business ethics, he proudly says. I never lied or cheated anybody and I always paid back the loans borrowed from the banks. That gives me immense satisfaction when I look back at my career.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
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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="color:#000;"><span style="font-size: 12px;">The malpractice in the name of unions that is going around is something that worries him. Basnet believes that professional working environment should not be unionised or politicised.<br />
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<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><strong>Spirituality<br />
	<br />
	</strong></span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">For the last 17 years, he has immersed himself into spiritual contemplation. He says, There is only one truth that is our soul and God. What we see with our eyes is nothing but illusion. Every morning, he meditates and ponders over spirituality for two hours. Basnet claims that NCC is also a kind of social organisation that has spent 58 years for the welfare of small, big and medium industries without any greed. He is also involved with a religious institution. I participate in some spiritual activities as religion is an integral part of our culture. My aim is to interact with the soul. I think our physical body is just like a mirage in the desert or the rope seen as a snake in dim light, he becomes saintly. </span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">In his free time, Basnet likes to visit Chitwan and indulges in prayer sessions. I know that exercise is needed to keep myself healthy but I have not been successful to manage time for it. But I do light exercises related to breathing and limbs every day for around half an hour, he revealed. I have some health problems but due to my spiritual inclination, they have not caused many problems to me, he claimed. Apart from that, he likes reading spiritual books, economic news and articles, occasionally watch family and social movies and TV channels like Discovery, National Geographic that air new and interesting things. He admits that he spends more time in spiritual contemplation. He feels his body has grown too old to indulge in any sports now.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="text-align: justify;">
	<span style="color:#000;"><span style="font-size: 12px;"><span style="line-height: 115%;">Basnet is thinking of taking retirement at the age of around 64 but he is not fanciful about his life after retirement. He does not dream of visiting new places, go swimming or golfing. He plans to immerse in his quest for spirituality. My philosophy is that being a human being, we are meant to find out who we are. So, I will also try to internalise the self, he declares.</span></span></span></div>
<div>
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
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	</span></span></div>
<div>
	<span style="color:#000;"><span style="font-size: 12px;"><strong>Personal Side<br />
	</strong></span></span></div>
<ul>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Loves wearing comfortable clothes that matches the personality</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Believes in brand of intellect than the brand of clothes</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Meditates for at least 45 minutes to two hours every morning </span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Loves listening to hymns</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Likes reading spiritual books</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Occasionally watches movies</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Adores interesting programs aired on Discovery, National Geographic and Animal Planet</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;"><span style="line-height: 115%;">&nbsp;&nbsp; Spiritual by heart<br />
		<br />
		</span></span></span></li>
</ul>',
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			'created' => '2011-08-10',
			'modified' => '2012-09-17',
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			'description' => 'Suresh Kumar Basnet began his business with the belief that if one has the capacity and acumen for marketing, one can sell just anything. From a budding businessman in 1979 to NCC president today......',
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	(int) 3 => array(
		'Article' => array(
			'id' => '385',
			'article_category_id' => '52',
			'title' => 'A Volte-face On Hydropower Development July 2011',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">I</span><span style="font-size: 9.5pt;">n the mid-June, Employees Provident Fund (EPF) announced its plan to invest Rs 15.5 billion for four medium-scale hydro-power projects. These projects included 100 megawatt Rasuwagadhi, 120 MW mid-Bhotekoshi, 14.6 MW upper-Syangden and 42.5 Syangden hydropower. All these projects are constructed by Chilime Hydropower Company at the cost of Rs 32.11 billion. The EPF commitment is almost half of the estimated cost. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<span style="font-size: 9.5pt;">In another development, government began its exercise to establish Hydropower Development and Investment Company, so far the largest development bank in Nepal for the purpose. This new company aims to generate at least Rs 20 billion as equity, mainly from the government and the public sector enterprises (PSEs), again, from the like of EPF.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<span style="font-size: 9.5pt;">There is no denying the fact that the country is in desperate need of resources to develop the hydropower, the sooner the better. And, also, Nepal must develop adequate hydropower projects not only to meet its ever growing energy needs but also to harness the water power that is available in abundance within the country.<br />
	<br />
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<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="386" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/1.jpg" style="margin:10px;padding:10px;" vspace="10" width="350" /></span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<br />
	<span style="font-size: 9.5pt;">But, these needs do not necessarily justify the recent government adventurism to manage resources for its development. Both, the EPF investment and setting-up of a new bank has two things in common. One, the government</span><span style="font-size: 9.5pt;">is only looking into the option of government-guided development of the sector. It is also because the EPF investment cannot be termed anything else as it is the fully government owned pension fund with almost monopoly in the market. And the proposed new entity has also proposed to incorporate rich PSEs alone. Second, in both the processes, possible involvement, participation and investment of the private sector have been completely ignored. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<span style="font-size: 9.5pt;">This is exactly the unbecoming for Nepal's hydropower development. On the one hand, there is already a debate on what degree of flexibility the EPF and the like PSEs should enjoy in diversifying its investment portfolio. And on the other, the question is if such collusion of government agencies (as Chilime is also government undertaking) alone could actually contribute to the hydropower development and solve the country's energy crisis.<br />
	<br />
	More serious issues surround the proposed new investment bank. Since it has precluded the private sector since its conceptualisation, its proposed Rs 20 billion equity funding is sure to prove too little to meet the financial resource demand for hydropower development. This amount is only enough to develop 100 to 150 MW of power at the most. Besides, this entity cannot be envisaged to take-up the retail banking to mobilise additional resources. At best, the resource gathered by this bank could be mobilised by other PSEs like Nepal Electricity Authority, nothing more.<br />
	<br />
	</span></div>
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	 </div>
<div>
	<span style="font-size: 9.5pt; line-height: 115%;">The only right course in this regard would have been the private sector leadership in investment, development and management of<i> all</i> hydropower projects. The government surely could have facilitated with policy and resources instruments it had. But, now things seem to be moving in completely opposite direction. And, the money dammed in by the government authorities might not be able to flow down so as to generate power, at least not in substantial scale and sustainable way. <br />
	<br />
	<br />
	</span></div>',
			'published' => true,
			'created' => '2011-08-10',
			'modified' => '2012-08-31',
			'keywords' => '',
			'description' => 'In the mid-June, Employees Provident Fund (EPF) announced its plan to invest Rs 15.5 billion for four medium-scale hydro-power projects. These projects included 100 megawatt.......',
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	(int) 4 => array(
		'Article' => array(
			'id' => '384',
			'article_category_id' => '34',
			'title' => 'CPVC Pipes From Panchakanya Plast(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">P</span><span style="font-size: 9.5pt;">anchakanya Plast Pvt Ltd, a Panchakanya Group company is introducing Chlorinated Poly Vinyl Chloride (CPVC) Pipes in the market soon. Harka Bahadur Thapamagar, the Sales Manager of the company said that the company has already begun the production of these pipes. â€œThe manufacturing of mould needed for making the pipes is in the process and we will launch our product within a month,â€ he said. </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;">According to Thapamagar, CPVC pipes are better alternatives to GI pipes for drinking water supply as the former are rust free and lightwieight to transport to remote locations. Panchakanya Plast has its factory near Bhairahawa.</span></div>
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Thapamagar claimed that Panchakanya is the first company to produce CPVC pipes in Nepal. These pipes are appropriate to use with both hot and cold water and can last up to 50 years. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">LIC (Nepal) Implements RDBMS</span></strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="">L</span><span style="font-size: 9.5pt;">ife insurance Corporation (Nepal) Ltd has gone a step further in its IT initiatives by introducing web-based policy administration system, states a press release of the company. In 2008, LIC (Nepal) became the first Life Insurance Company to network all its branches across Nepal, enabling effective inter-branch communication system. By using RDBMS (Relational Data Base Management Systems) with the web-based front end architecture now, the company has achieved centralisation of its database, adds the press release promising that the new development will make servicing more effective, ensure real time transaction updation and also allow remote users to have access to latest data. This will also enable the company in the near future to provide online payment facility and 24x7 services to its customers, it adds.</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;">The entire package has been developed in-house by the LIC of India using the latest technologies in the market and is very user friendly, according to the company. The package will also have the feature of maintaining customer ID to provide services to all the policies of one customer in a single window.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">The module came into operation from 5th May 2011. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">New Industries in Patan Industrial Estate</span></strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">hree new industrial units are being established in Patan Industrial Estate (PIE). The new units are added are Shakti Food Pvt Ltd, Siddhilaxmi Plastic Industry and Nepal Commercial Industry. </span></div>
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	<span style="font-size: 9.5pt;">Prem Nepal, the Manager of Patan Industrial Estate said that two other industrial units are planning to expand capacity while another one plans to revive its operation.</span></div>
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	<span style="font-size: 9.5pt;">Siddhilaxmi is investing Rs 10 million while Rs 100 million is being invested in Shakti Food.&nbsp;Nepal Commercialâ€™s investment has not been finalised yet, according to Pushkar Paudel, the Manager of the company which is currently the authorised distributor of Indian furniture brand â€˜Godrejâ€™ in Nepal. The PIE plant of Nepal Commercial will be assembling furniture. </span></div>
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	<span style="font-size: 9.5pt;">Shakti Food plans to introduce â€˜Martinâ€™ brand of ice-cream in the market and will have a daily production capacity of 20,000 litres. Besides ice-creams, it will also produce other dairy products.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Shakti Shrestha, the operator of Siddhilaxmi Plastic industry informed it will start producing plastic bottles within the next couple of months. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Infrastructure Bonds in USD </span></strong></span></div>
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	<span style="font-size: 12pt;">N</span><span style="font-size: 9.5pt;">epal Rastra Bank (NRB) is mooting a policy to allow purchase of big infrastructure project bonds by paying US dollars. The NRB has begun internal discussions for formulating such policy so as to attract foreign investment in big projects. A source at the NRB revealed that the policy is being prepared to attract foreign investments in hydroelectricity and other big projects.</span></div>
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	<span style="font-size: 9.5pt;">People who buy such bonds by paying US dollars will get the interest in US dollars. Similarly, the principal amount too will be returned upon maturity in US dollars. </span></div>
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	<span style="font-size: 9.5pt;">With this policy, also the foreigners can buy bonds issued by Nepal. But some legal formalities have to completed before such bonds can be issued. For example, the existing law has to be amended, said a source in the NRB. </span></div>
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	<span style="font-size: 9.5pt;">These bonds can be bought also by the NRNs, companies and persons having regular income in US dollars. However, the NRB will be barred, according to the surce, from buying such bonds though it is allowed to buy foreign bonds with the foreign currency reserve it holds. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The big infrastructure projects that require huge capital can issue such bonds through merchant banks, according to the proposal.&nbsp;A number of the promoters of large projects have asked the NRB for a provision to allow foreign investors buy their bonds due to the scarcity of capital within the country to invest in such big projects. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Minimum Wage Controversy </span></strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 13pt;">T</span><span style="font-size: 9.5pt;">he Ministry of Labour and Transport Management has unilaterally fixed the minimum wage amidst opposition from Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and three major trade unions.</span></div>
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	<span style="font-size: 9.5pt;">Krishna Hari Pushkar, the spokesperson at the ministry said the minimum wage was fixed considering two previous agreements made on March 24 and April 15. He said, â€œMinimum wage has been fixed taking into consideration the concerns of both employers and employees.â€</span></div>
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	<span style="font-size: 9.5pt;">The minimum wage has been increased from Rs 4,600 to Rs 6,200. Similarly, the daily wage has been increased from Rs 190 to Rs 231. </span></div>
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	<span style="font-size: 9.5pt;">Pashupati Murarka, the Vice President of FNCCI said the employers wonâ€™t agree to any agreement published in Nepal Gazette that goes against the one made on March 24. He alleged that the notice was published in the gazette without consulting the employers. </span></div>
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	<span style="font-size: 9.5pt;">An official at the FNCCI alleged that the minimum wage has been fixed as per the demand of Madhesi trade unions since the Labour Minister represents the Madhesi Jana Adhikar Forum.</span></div>
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Bishnu Rimal, the President of General Federation of Nepalese Trade Unions (GEFONT) said that new agreements should not be implemented before dismissing the old ones. He said that they are currently following the agreement made on March 24. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Bluebird Mart Inaugurated</span></strong></span></div>
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	<span style="font-size: 15pt;">B</span>luebird Shopping Complex has come to operation in a changed form. Now called&nbsp;Bluebird Mart, it has added a new departmental store and two world-renowned chain restaurants. The Mart was inaugurated on May 17 by Miss Nepal Sadikshya Shrestha. KFC and Pizza Hut restaurants are scheduled to open soon, according to Binod Tuladhar, the Managing Director of Bluebird Mall.</div>
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	He also informed that the Yellow Chilly, an Indian chain restaurant will also be added to the property later. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Five-star Hotels Register 80 per cent Occupancy </span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;"><span style="font-size: 14px;">h</span>e occupancy rate of the five-star hotels in the first four months of Nepal Tourism Year (NTY) 2011 has touched 80 per cent. Raju Bikram Shah, the Senior General Manager of Hotel Shangri-La said, â€œHotel occupancy in the first four months of this year has increased by 10 per cent when compared with the same period last year.â€ </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;">With the mountaineering season picking up momentum, some hotels have registered more than 80 per cent occupancy for April. However, Shah said the hotels should have 100 per cent occupancy due to NTY programmes. Encouraged by the positive response for the first four months, hotel entrepreneurs are hopeful that occupancy will remain high in the coming months as well.</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;">According to Bharat Joshi, the Marketing Director of Hotel Yak and Yeti, the occupancy rate increased with the trekking and mountaineering season. Hotel entrepreneurs further expect growth in tourist arrivals with the advent of pilgrimage season for Kailash-Mansarobar.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">In April, Hotel Shangrila had 87 percent occupancy, while Hotel Yak and Yeti had 79 percent, Hotel Soaltee 78 percent and Hotel Fulbari around 80 per cent. Five-star hotels claim the tourist flow increased because of their promotional efforts in the international market. They added that they spend Rs 400 million annually for overseas tourism promotion.&nbsp;</span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">NTBâ€™s â€˜Border City Sales Missionâ€™ </span></strong></span></div>
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	<span style="font-size: 14px;">N</span>epal Tourism Board (NTB) has begun a tourism promotion campaign â€˜Border City Sales Missionâ€™ in the Indina cities close to the Nepal border. According to NTB, sales mission has been started in Indian cities of Kanpur, Varanasi and Lucknow. Lila Bahadur Bania, a Manager in the NTB said that the campaign was started as the Indian tourists were not coming to Nepal in large numbers. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Petroleum Import Exceeds Total Export </span></strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he revenue generated from Nepalâ€™s export cannot even buy petroleum products required for the country, according to the recent trade data. Nepal exported goods worth Rs 47.98 billion by mid-April of the current fiscal year while the country spent Rs 50.26 billion for importing petroleum products during the same period, show the data released by the countryâ€™s trade monitoring body Trade and Export Promotion Centre (TEPC). </span></div>
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	<span style="font-size: 9.5pt;">By mid-April of last fiscal year, petroleum imports were worth Rs 35.22 billion.</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;">Nepal had to spend more for petroleum products due to two reasons. One was the unrest in the Middle-East that led to an increase in price of the petroleum in the world market. Second was the increase in the demand within the country due to lengthened power outage due to failure to increase power generation from the countryâ€™s hydropower plants. </span></div>
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	<span style="font-size: 9.5pt;">In the same period of the current fiscal year, Nepal has imported goods worth Rs 287 billion. So, Nepalâ€™s trade deficit has reached Rs 239 billion in the first nine months of the current fiscal year, according to TEPC.</span></div>
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Even though the imports of petroleum products and iron and steel have increased, there is a decrease in the import of machineries, electronics, vehicle spare parts and gold. In the first nine months of the last fiscal year, gold worth Rs 24.61 billion was imported but it has decreased to Rs 4.62 billion this year, a decline of 87.7 per cent. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>',
			'published' => true,
			'created' => '2011-08-08',
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			'description' => 'Panchakanya Plast Pvt Ltd, a Panchakanya Group company is introducing Chlorinated Poly Vinyl Chloride (CPVC) Pipes in the market soon. Harka Bahadur Thapamagar, the Sales Manager of the company said......',
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	(int) 5 => array(
		'Article' => array(
			'id' => '383',
			'article_category_id' => '34',
			'title' => 'EU Ban Affects Ayurved Export(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">epalâ€™s export of Ayurvedic medicines to Europe has declined following a ban on their import by European Union (EU) effective from May 1 citing public health risk. </span></div>
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	<span style="font-size: 9.5pt;">Dr Rishiram Koirala, the President of Ayurvedic Doctorsâ€™ Association-Nepal (ADAN) said the ban has proved really bad as it came exactly when the export of Nepali Ayurvedic medicines was on the rise. He complained that the EU ban also affected export to other countries. Koirala claimed that the ban was imposed to promote internal production of EU,not due to any threat to health.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Toya Narayan Gyawali, the General Secretary (Check â€¦. As there can be no such post as Gen Sec In a Ministry) at the Ministry of Commerce and Supplies said the government has not received any formal notice on the restriction. He said, â€œIf the restriction has indeed been imposed, we will try to solve the problem as soon as we receive a formal notification.â€ Prior to the ban, there was growing demand of ayurvedic medicines in eight countries including Austria and Sweden. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Rinchen Teaching Hospital in Dang</span></strong></span></div>
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	<span style="font-size: 14px;">C</span><span style="font-size: 9.5pt;">onstruction is going on for Rinchen Teaching Hospital at Sisahania of Dang with an investment of Rs 8 billion. According to the executive committee of the hospital, the initial phase of work has been completed. Gopal Prasad Bhusal, the Chairman of the committee claimed the hospital would be one-of-its-kind among the non-profit hospitals in Nepal.</span></div>
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	<span style="font-size: 9.5pt;">For the first phase, Rs 60 million was allocated while Bhusal said Rs 150 million may be required for designing and other works in the second phase. â€œIn the third phase, the entire physical construction would be completed at an investment of Rs 6 billion,â€ said Bhusal. Another Rs 2 billion will be invested to make the hospital operational. Out of the total investment, Rs 200 million will be invested for information technology.</span></div>
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	<span style="font-size: 9.5pt;">Between 60 to 80 percent of the total cost will be financed by Ranag Tulku Rinchen Rinpoche, the Protector of the hospital, informed executive committee member Tilak Bhandari. The rest of the cost is to be financed from the government, local bodies and local donors, he added. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">According to Bhusal, the 700 bed-hospital plans to operate also air ambulance service in the future. The hospital will educate 100 MBBS, 50 MD, 200 BSC and 200 Nursing students every year. It will also conduct academic classes on meditation, yoga and spiritual knowledge. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">NRBâ€™s Forced Merger By-laws</span></strong></span></div>
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	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">epal Rastra Bank (NRB) has issued a merger by-law that allows NRB to order a bank and financial institutions (BFIs) to merge if it is found weak in its vital indicators. The by-law also offers a number of incentives to encourage mergers, said Bhaskar Mani Gyawali, the NRB Spokesperson.</span></div>
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	<span style="font-size: 9.5pt;">The BFIs opting for mergers will be waived off several conditionalitis related to upgradation and operational area expansion. The by-laws also relax the provision on mandatory â€˜complete three yearâ€™ rule in adding number of branches in the districts allowed to operate. </span></div>
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	<span style="font-size: 9.5pt;">The new regulation incorporates the provision of forceful merger, allowing the central bank to instruct two or more BFIs to merge if it deems appropriate. Similarly, the new rule has pledged relaxation on capital structure, shareholding limit for promoters, credit-deposit ratio, borrowing limit for promoters and deprived sector lending, among others.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The central bank can instruct or suggest BFIs to merge if representatives of the same group, firm or company are found holding positions in the board of directors of more than one BFIs. It can also do so if the BFIsâ€™ non-performing loans exceed five per cent of the total loan portfolio for three consecutive years and if the BFIsâ€™ independent operations are causing negative impact on the banking system. The NRB can also ask those&nbsp;BFIs to merge to which the central bank has taken three corrective actions in a row or even in a case where it thinks the merger would strengthen the overall banking system. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Ncell Reduces 3G Tariff</span></strong></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">P</span></span><span style="letter-spacing: 0.15pt;">rivate sector telecom operator Ncell has come up with a new scheme with reduced tariff for high-speed 3G Internet. Under the scheme, the company offers 500 Mb data for Rs 399 (or 80 paisa per Mb) down from earlier Rs 499. Similarly, 1000 Mb is now priced at Rs 699 (or 70 paisa per Mb). The Internet users not subscribing to the new packages will have to pay Rs 2 per Mb. </span><span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Banksâ€™ Hydropower Investment Reach Rs 16 billion </span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he investment of Nepali Banks and Financial Institutions (BFIs) in hydro electricity projects has reached almost Rs 16 billion during the period of the last decade. Chilime Hydropower under the Public-Private Partnership model is the first project to have investment from Nepali banks. Himalayan Bank led the consortium of bankers to invest in this project. However, Indrawati is the first hydropower project promoted entirely by the private sector to receive bank investment.</span></div>
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	<span style="font-size: 9.5pt;">Among the other projects with bank finance are Piluwa, Sunkoshi and Sanima Mai. While the former two are small projects, Sanima Mai is relatively big with 15.6 MW and it has investment from a consortium of 11 BFIs. Until now, the BFIs have invested in this sector only through consortium.</span></div>
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	<span style="font-size: 9.5pt;">So far, a total of 21 banks and finance companies have invested in hydroelectricity projects. Clean Energy Development Bank and Jyoti Development Bank say they are specialised in investing in the energy sector and thus increase investment in this sector in the future.&nbsp;</span></div>
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	<span style="font-size: 9.5pt;">However, the investment of banks in hydroelectricity is a mere four per cent of the total deposits of the commercial banks. Recently, Nepal Rastra Bank changed the rule and allowed BFIs to invest up to 30 per cent of their loan outstanding in hydropower projects. Because the investment in this sector from the banks is very low compared to what they are allowed to, the private sector energy entrepreneurs have started arguing for fixing a minimum amount that the BFIs must invest in this sector. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Bankers say they are reluctant to invest in energy as it requires long gestation period and the returns are comparatively higher in other sectors. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Registration of Hydropower Companies Made Easy</span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he Indistrial Promotion Board under the Ministry of Industry has changed the company registration rule for potential hydropower developer. According to the change, the the company registration for hydropower development is divided into two phases, says a souyrce at the Ministry of Industry. </span></div>
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	<span style="font-size: 9.5pt;">With this there is no capital requirement specified for the company that wants to just conduct the feasibility study on the proposed project. But once the company completes the feasibility study and wants to develop the project, it must have its authorised capital at least Rs. 100 million per megawatt of the generation capacity of the proposed project. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The earlier provision required the company to have at least Rs. 100 million as authorised capital even while asking for the permission to conduct feasibility study. This had restrained many developers as they have to pay a high amount as the company registration fee. The Registrar of Companies charges higher registration fee for higher capital. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Cash Rich Govt Institutions asked to Buy Shares in Listed Companies</span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he high-level financial sector reforms coordination committee has decided to issue directives to state-owned institutions to buy shares of companies listed in the stock echange. Dr Surbir Paudyal, a Member of the committee and Chairperson of the Securities Board of Nepal (SEBON) said, â€œA decision has been made to allow Employees Provident Fund and Citizens Investment Trust to invest in the shares of companies listed in the stock exchange.â€</span></div>
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	<span style="font-size: 9.5pt;">It has also been decided to review the policy on loan from the banks against the security of share certificates and to explore ways to reduce cost of investment in shares. The major costs of investment in shares includeinterest on loan against the security of share certificates, share brokersâ€™ commission, capital gains tax and charges levied by Nepal Stock Exchange.</span></div>
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	<span style="font-size: 9.5pt;">Under the existing policy, the banks are allowed to lend against the security of share cerrificates up to the amount of 60 per cent of the market value of the share and they have to make a margin call when the market price of the share so received as security falls more than 10 per cent.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The meeting also decided to immediately begin induction of new brokers, start operation of mutual fund and establish credit rating agency. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>',
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			'description' => 'Nepalâ€™s export of Ayurvedic medicines to Europe has declined following a ban on their import by European Union (EU) effective from May 1 citing public health risk.',
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		'Article' => array(
			'id' => '382',
			'article_category_id' => '34',
			'title' => 'Korean Company Sells Stake In Himalayas Spring Water(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;">T</span>The Korean Company that owns Himalayas Spring Water situated in Rasuwa has decided to sell half of its shares for Rs 200 million to Muktishree Pvt Ltd, a Nepali company.â€œThe Korean Company has now decided to have a separate Nepali company as its strategic partner,â€ informed Ganga Dhital, the General Manager of the company.</div>
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	Though the decision has been made already, the formal transfer of shares is yet to materialise. The Department of Industry has also given its approval for the transfer of ownership. After the approval from the Office of the Company Registrar and Nepal Rastra Bank, the Korean company will get Rs 200 million from the buyers. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">New Model for Monetary Survey </span></strong></span></div>
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	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">epal Rastra Bank (NRB) is planning to carry out a monetary survey with a new and updated framework which is under preparation at present. An official at the NRB said the old framework is limited to a few commercial banks in its coverage as it was developed when the number of banks and financial institutions in the country was very small and the level of monetization in the economy was very low. With the growth in number of BFIs and much higher level of monetization of the economy, the old framework cannot correctly represent actual situation.</span></div>
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	<span style="font-size: 9.5pt;">In the absence of clear demarcation of their functions in the law and rules, the commercial banks, development banks and finance companies carry out almost similar activities making it necessary to include them all in the scope of monetary survey to get the true picture of money supply in the economy. However, the existing system of monetary survey does not include the activities of development banks and finance companies.&nbsp;</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Deependra Bahadur Kshetry, Former Governor of NRB suggested including cooperatives as well in the survey as they too are doing similar activities as those of the banks. He also suggested that the monetary survey should include also the quantity of Indian currency in circulation in Nepal. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">49th IHRA Conference in Nepal </span></strong></span></div>
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	<span style="font-size: 14px;">I</span><span style="font-size: 9.5pt;">nternational Hotel and Restaurant Association (IHRA) has selected Nepal as the venue for its 49th Congress scheduled to be held from December 1 to 3. Dr Ghassan AÃ¯di, the President of IHRA officially informed Prime Minister Jhala Nath Khanal about the schedule recently.</span></div>
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	<span style="font-size: 9.5pt;">The IH&amp;RA has its head office in Geneva and has 1.1 million members around the globe representing 300,000 hotels and 800,000 restaurants, informed AÃ¯di.</span></div>
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	<span style="font-size: 9.5pt;">IHRA had held its Congress in Nepal once before in 1968.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Nepal bagged the opportunity to organise the coming event winning over the bids of Argentina and Switzerland. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<strong><span style="font-size: 16px;"><span style="color: rgb(51, 51, 153);">Life Insurance Bonus to Go Down</span></span></strong></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he life-insurance policy holders should now be prepared for reduced bonus on their savings as the regulator of the sector, the Insurance Board (IB), has instructed the insurance companies to change their method o fcalculatin the returns from their investment for the bonus purpose. </span></div>
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	<span style="font-size: 9.5pt;">&nbsp;According to a recently issued directive from the Board, the actuaries of the insurance companies will now take maximum of 6 percent as the return from their investment. However, if the actual return in any of the last three yearâ€™s period covered by the acturial valuation is less than 6 percent, they are required to take that lower figure for the acturial valuation. </span></div>
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	<span style="font-size: 9.5pt;">The insurance companies transfer such amount from their profit and loss account to the fund from where they can distribute bonus to the policyholders and dividend to the shareholders. Any surplus after such fund is provided for will be transferred to insurance fund which is to be treated as reserve from which neither bonus nor dividend canbe distributed. </span></div>
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	<span style="font-size: 9.5pt;">This means the bonus rate on the savings of the life insurance policy holders will be less than 6 percent. At present some of the insurance companies are paying bonus at as high a rate as over 7 percent. </span></div>
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	<span style="font-size: 9.5pt;">Shekhar Kumar Aryal, the Spokesperson of the Board said, â€œThis provision has been made to ensure the longevity of the insurance company.â€</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Insurance company sources complain that this new rule will attract the people away from life insurance to depositing their savings in banks. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Community-led Micro Hydros</span></strong></span></div>
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	<span style="font-size: 14px;">T</span>he Society of Rural Empowerment based in Damauli has supported to install 112 micro hydro projects in eight districts that generated a total of one megawatt of electricity. Rs 53.2 million was invested in these projects. Sarita Gurung, President of the Society said the governmentâ€™s Alternative Energy Promotion Centre and Danish International Development Agencyâ€™s (DANIDA) programme on alternative energy provided financial support to the projects.</div>
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	As part of this programme, 47 projects were constructed in Dhading, 21 each in Gorkha and Makwanpur and 12 in Lamjung districts. Similarly, four each in Nawalparasi and Manang, three in Tanahu and one project in Rasuwa were constructed. According to the Society, 10,800&nbsp;households benefitted from the programme. Projects were developed in areas not linked with national transmission line and having little chance of linkage anytime soon. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Exporters Deprived Promised Incentive</span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he exporters are still denied the incentives they were promised by the government while presenting the budget for the current fiscal year. The reason behind this is the change in the government due to which there has been delay in getting approval from the council of ministers on the procedural guidelines prepared for this purpose. </span></div>
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	<span style="font-size: 9.5pt;">According to Toya Narayan Gyawali, a Joint Secretary in the Ministry of Commerce and Supplies, the guidelines were presented to the Council of Ministers about four months ago. But the approval was delayed as the government changed in the meanwhile. </span></div>
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	<span style="font-size: 9.5pt;">The government has made a provision in the current yearâ€™s Finance Bill to give the exportes a cash incentive of two to four per cent of the export value after the foreign currency payment is received against the export. The government has allocated Rs 250 million for this purpose.</span></div>
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	<span style="font-size: 9.5pt;">Udaya Raj Pandey, the President of Garment Association Nepal (GAN) expressed frustration that the government failed to provide the promised incentive even though the time for a new budget is approaching so near. â€œThe failure to implement the promise has irritated the exporters,â€ he said. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Pandey also said that since the government levies tax as soon as the budget is announced, it should show similar promptness also in implementing the promise of providing incentives.&nbsp;</span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">PE Management Board Proposal @ Cabinet </span></strong></span></div>
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	<span style="font-size: 9.5pt;">The Ministry of Finance has submitted a proposal to the Cabinet Secretarieat for the formation of the Public Enterprises Management Board as promised in the budget announcement of the current fiscal year.&nbsp;</span></div>
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	<span style="font-size: 9.5pt;">Lok Darshan Regmi, a Joint Secretary at the Ministry of Finance said the board will coordinate and facilitate the activities of the public enterprises. </span></div>
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	<span style="font-size: 9.5pt;">However, the economists and management experts have termed this as a measure to avoid privatisation of public enterprises. In their view, this step would increase financial load on the PEs on the one hand and create one more bureaucratic hurdle in their operations. </span></div>
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	<span style="font-size: 9.5pt;">Dr Bimal Koirala, the Former Chief Secretary of the government said, â€œIt would be better to privatise the PEs than to form this board.â€</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The government has made a total loan investment of Rs 79.34 billion in these corporations so far. This year alone, Rs 16.19 billion was allocated in the budget for the 36 operational corporations. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>',
			'published' => true,
			'created' => '2011-08-08',
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			'description' => 'TThe Korean Company that owns Himalayas Spring Water situated in Rasuwa has decided to sell half of its shares for Rs 200 million to Muktishree Pvt Ltd, a Nepali company.â€œThe Korean Company has........',
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	(int) 7 => array(
		'Article' => array(
			'id' => '381',
			'article_category_id' => '34',
			'title' => 'Ad And Media Expo Concludes(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12px;">T</span>he three-day Ad and Media Expo 2011 jointly organised by Advertising Association of Nepal, Alpabiram Pvt Ltd and Direction Nepal Pvt Ltd concluded on April 30. The expo organised to bring together the advertising and media industry, advertisers, clients, media owners and buyers was visited by 22,800 people. The organisers said the expo will be held next year as well.<span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Eleven New Hotelsfor NTY</span></strong></span></div>
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	<span style="font-size: 14px;">I</span><span style="font-size: 9.5pt;">n the first four months of Nepal Tourism Year (NTY) 2011, 11 tourist-standard hotels have been added. According to Shambhu Prasad Koirala, the Officer at the Hotel Department of the Ministry of Tourism and Civil Aviation (MoTCA) said new hotels were registered in the beginning of the NTY expecting good returns.</span></div>
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	<span style="font-size: 9.5pt;">â€œAs the registration procedure does not require investors to reveal the amount of capital investment, people unwilling to divulge their liquid assets are attracted to invest in the hotels,â€ said Koirala. Among the newly registered hotels, eight are in Kathmandu and rest three outside of the Valley.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">&nbsp;In 2010, 39 new hotels were added among which eight were three-star, two onestar and 29 tourist-standard. A total of 777 hotels have been registered with MoTCA so far. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Government Drafting Railway Law </span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he government is drafting a railway law to provide a legal framework for facilitating the construction of railway lines and operation of railway services. According to the Ministry of Commerce and Supplies (MoCS), the law is expected to be promulgated in the fiscal year 2011-12. A four-member team led by MoCS Joint Secretary Toya Narayan Gyawali is drafting the law.</span></div>
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	<span style="font-size: 9.5pt;">Matrika Prasad Marasini, a Undersecretary at the Law and Decision Implementation Section said, â€œIn the absence of such a law, the railway services in operation in Janakpur and Birgunj dry port are regulated by Indian Railways. After the law comes into effect, they will be regulated by Nepal Railways.â€</span></div>
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	<span style="font-size: 9.5pt;">According to the draft of the law being prepared now, a separate unit under the Ministry of Labour and Transport Management will be set up to coordinate railway issues.&nbsp;The government may also form a railway board under the proposed law.</span></div>
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	<span style="font-size: 9.5pt;">Currently Nepal has railway services operating on 29-kilometres stretch of Janakpur-Jayanagar. Similarly, there is a structure of railway upto Amlekhagunj from Raxaul though the service on this area is available only upto the Birgunj Dry Port from Raxaul. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The Ministry of Physical Planning and Construction has set a target to develop 4,000 kilometres of railway tracks in Nepal in the next 20 years. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Six Sigma Yellow Belt Certification </span></strong></span></div>
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	<span style="font-size: 14px;">S</span>ix Sigma Yellow Belt Certification Training conducted by Growth Sellers, a human resource company, concluded on May 15. During the two-day programme, Dr R S Chalapathi from the India-based Institute of Sigma Learning trained 35 senior managers from various companies. Six Sigma is a modern management tool that helps to lower cost and increase productivity. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">CG sponsors RCT</span></strong></span></div>
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	<span style="font-size: 14px;">C</span>G Electronics, a wing of Chaudhary Group (CG) will provide Rs 500,000 as sponsorship amount to Ranipokhari Corner Team (RCT) for a year. The two parties signed an agreement to this effect on May 12. For the contract period, RCT players will wear the jerseys during matches bearing the LG Mobile logo. .</div>
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	Ramesh Shrestha, the General Manager of CG Electronics and Bijay Manandhar, the President of RCT signed the agreement. Shrestha said such sponsorships by business houses will help develop professionalism in in Nepali football. Manandhar said the sponsorship has provided a great financial relief to the team, for this year. CG has been sponsoring the education and sports sectors for a few years now. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">SPI Acquires Worldlink</span></strong></span></div>
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	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">Software Paradigms International Group (SPI), an Atlanta-based company providing technology service and financial solutions, has acquired Worldlink Technologies, a Nepali software company. According to a statement issued by Worldlink, the company will now be known as SPI Nepal. The current Worldlink CEO Yajurendra Shrestha will head the new company as well. </span></div>
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	<span style="font-size: 9.5pt;">Established in 2001, Worldlink has been involved in software development related to human resource, e-governance and social security. Apart from domestic customers, the company also works with the government of Orissa, India and a&nbsp;Delhi based company, Invest India Micro Pension Services. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">SPI entered Nepal after establishing footholds in Europe, Asia, North America and Australia. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>',
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			'description' => 'The three-day Ad and Media Expo 2011 jointly organised by Advertising Association of Nepal, Alpabiram Pvt Ltd and Direction Nepal Pvt Ltd concluded on April 30. The expo organised to bring together the advertising.....',
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	(int) 8 => array(
		'Article' => array(
			'id' => '380',
			'article_category_id' => '34',
			'title' => 'Financial Closure Of Upper Tamakoshi(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">epal Telecommunications Corporation (NTC) has agreed to finance Rs 6 billion to construct the Upper Tamakoshi Hydropower Project. A 456 megawatts hydroelectricity project is financed by domestic investors and being developed for an estimated cost&nbsp;of Rs 35.29 billion. </span></div>
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	<span style="font-size: 9.5pt;">Kanhaiya Lal Gupta, the Deputy Managing Director of NTC and Mrigendra Bahadur Shrestha, the Project Director of the Upper Tamakoshi Hydropower Limited (UTKHPL) signed the agreement.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Similarly, Employees Provident Fund has been investing Rs 10 billion, while Citizenâ€™s Investment Trust and NTC have put Rs 2 billion and Rs 6 billion respectively for the project. The remaining Rs 11.8 billion will be generated by the government. The project, to be completed in 2015, has 70 per cent investment financed by loans and the rest 30 per cent from share capital. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>
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	<strong><span style="font-size: 16px;"><span style="color: rgb(51, 51, 153);">Samitivej to Manage Grande Services </span></span></strong></div>
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	<span style="font-size: 14px;">G</span>rande Hospital Nepal and Samitivej Hospital Thailand have reached an agreement for service management of the hospital. Dr Roop Jyoti, the President of Grande and Reymond Chong, the CEO and Managing Director of Samitivej signed an agreement to this effect recently in Kathmandu.</div>
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	Grande Hospital, being constructed by CE Construction at Tokha, will have a capacity of 150 beds in a 14-storied building. The hospital plans to offer international standard health facilities at a low cost. Being constructed in a 210,000 square feet area, the building will be disabled-friendly. The hospital is being constructed at an investment of Rs 1.40 billion. It will have eight operation theatres, five elevators and four staircases. Jyoti hoped that once the hospital begins its services, the trend&nbsp;to go abroad for treatment will come to an end. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<strong><span style="font-size: 16px;"><span style="color: rgb(51, 51, 153);">MoTCA Seeks Updation of Hotel Standards </span></span></strong></div>
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	<span style="font-size: 16px;">T</span><span style="font-size: 9.5pt;">he Ministry of Tourism and Civil Aviation (MoTCA) is working to update its criteria for hotel and restaurant standards. Keshav Prasad Bimali, the Joint Secretary at the ministry said, also on the cards is the change in the rule so that the hotels will be mandatorily required to register themselves with MoTCA. The code is being updated to accommodate the changes made in various policies and rules four years ago (2064 Bikram Sambat) when the existing code was promulgated, he said. </span></div>
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	<span style="font-size: 9.5pt;">According to the existing rules, the hotels do not need to be registered with MoTCA. As a result it does not have a data on the number of hotels in operation. The code needs to be updated to include such requirements, remarked Shambhu Prasad Koirala, a Section Officer at the Hotel Division of the ministry. He said that this update will make it mandatory for hotels to be registered at the ministry and establish a renewal charge. </span></div>
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	<span style="font-size: 9.5pt;">The ministry is also planning to form a working committee in coordination with the Hotel Association of Nepal, Nepal Tourism Board, Nepal Academy of Tourism and Hotel Management and other concerned bodies for the upgradation and amendment of working directives.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The ministry said that the standard of existing five-star hotels need to be upgraded to meet SAARC standards. However, the ministry will update the code for five-star hotels only after updating the standards for the tourist-standard hotels. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Machhapuchchhre Wins Inter-bank Volleyball </span></strong></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: 0.2pt;">M</span></span><span style="letter-spacing: 0.2pt;">achhapuchchhre Bank Limited has won the inter-bank volleyball tournament beating Kumari Bank Limited with a score of 23-25, 25-21, 32-30 and 25-18 in the final. The Bank&nbsp;was awarded Rs 50,000 cash prize and a trophy. The tournament was organised to commemorate the 56th anniversary of Nepal Rastra Bank. Kumari Bank took home Rs 35,000 and the runners-up trophy. Everest Bank Limited came third beating Agriculture Development Bank. </span><span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">NIDCâ€™s 43rd AGM</span></strong></span></div>
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	<span style="font-size: 14px;">N</span>epal Industrial Development Corporation (NIDC) held its 43rd annual general meeting on May 7 after a gap of nine years. The annual reports from 2002-02 to 2009-10 were presented by NIDC Chairman Shanta Bahadur Shrestha during the meet organised in its central office at Durbarmarg. Among the major resolutions of the AGM was the decicion to change its name into NIDC Bank Limited. Coinciding with the occasion, NIDC also started ATM service from its Durbarmarg office. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Shalimar Begins Clinker Production</span></strong></span></div>
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	<span style="font-size: 14px;">S</span>halimar Cement Industry, in cooperation with Unitech Pvt Ltd, has begun trial production of clinker, a raw material used for producing cement. The industry located at Bara-Parsa Corridor has an investment of Rs 700 million and produces 30 tonnes of clinker every day.</div>
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<p style="text-align: justify;">
	<span style="font-size: 11pt; line-height: 115%;">Ashok Kumar Vaidya, the Managing Director of the company said the full capacity of producing 300 tonnes every day will be utilised in one-and-a-half monthâ€™s time. While this is the fifth Nepali company to produce clinker indigenously, other industries depend on imported clinker for cement production. The company has said it will supply clinker to other industries only after meeting its own needs.</span></p>',
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			'description' => 'Nepal Telecommunications Corporation (NTC) has agreed to finance Rs 6 billion to construct the Upper Tamakoshi Hydropower Project. A 456 megawatts hydroelectricity project is financed by domestic investors........',
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		'Article' => array(
			'id' => '379',
			'article_category_id' => '40',
			'title' => 'URBAN HOUSING HOME IN HIGH-rises(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14.5pt;">T</span><span style="font-size: 9.5pt;">he conventional system of owner-built housing is still predominant but with the growing demand for land-for-house, the Kathmandu Valley is experiencing a space-constraint in recent times. It is becoming increasingly difficult for people to find suitable land to build individual residences on. However, inducing paradigm shift is a substantial challenge to overcome the tradition of building oneâ€™s own house. Vertical living, due to its sheer nature of accommodating multiple units, promises to become the preferred lifestyle option for many.&nbsp;Currently, the housing industry of Nepal is worth an estimated whopping Rs 200 billion. </span></div>
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	<span style="font-size: 9.5pt;">A total of 54 companies have received permission for construction of community or collective housing so far in the three districts of the Kathmandu Valley. These companies have received the nod to build 3,633 units of family residences against a demand of 30,000 units which is expected to exceed well over 40,000 units each year in the valley by 2020. While fiscal years 2007-08 and 2008-09 saw the highest number of new projects registration, 2009-10 had very few registrations and 2010-11 has no new projects initiated owing to lack of investment on the part of banks and financial institutions (BFIs). Om Rajbhandary, the CEO and Chairman of Comfort Housing Pvt Ltd reveals, â€œSome approved projects have continued to progress while some others have slowed down, delayed or downsized.â€ </span></div>
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	<span style="font-size: 11.5pt;">Current Scenario</span></div>
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	<span style="font-size: 9.5pt;">The overheated housing market has shown signs of meltdown intensifying the apprehension of the speculative investors leading to the BFIs losing sleep over huge loans issued to the housing developers. With the BFIs tightening issue of new loans and aggressively pursuing recovery of past loans, it will take a while before the now stagnant housing market bounces back, a developer opines. The BFIs had invested aggressively to begin with but the current slump has left them anxious due to their huge loan portfolio for the housing sector. </span></div>
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	<span style="font-size: 9.5pt;">Even though the housing industry is going through a difficult period, entrepreneurs take solace from the fact that scarcity of land along with a sense of security ensured by apartment complexes is bound to hold the business in good stead in the foreseeable future. The intended dwellers too are gaining confidence and slowly gravitating towards the concept of community living of late. On an average, the prices of apartments vary from anything between Rs 6 million to well over Rs 10 million. However, some companies have recently introduced economy flats costing about Rs 1.7 million.</span></div>
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	<span style="font-size: 11.5pt;">Realtorsâ€™ Perspective</span></div>
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	<span style="font-size: 9.5pt;">Itâ€™s about time the term â€˜realtorâ€™ came into force with obtained legality if Nepalâ€™s housing sector were to register a positive growth. The Nepal Land and Housing Developersâ€™ Association (NLHDA) has proposed the government to issue â€˜licence to operateâ€™ tag so that only the licensed realtors have the right to ply the trade. It will regulate the housing sector to a great extent and bring the realtors within the taxation bracket. Till now, the sector has been operating on an ad-hoc basis in the absence of concrete bylaws, says Ichha Raj Tamang, the President of NLHDA. He adds that the private housing projects have also been suffering from lack of proper legislation on housing development â€“ an effective â€˜code of ethicsâ€™ and â€˜property transaction actâ€™ are much desired for. </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;">Majority of the construction work is being carried out in a haphazard manner and in unplanned areas. NLHDA has urged the authorities to strictly regulate the construction business to address the ever-growing demand of urban construction and check the blatant use of landscape for its vertical growth. NLHDA has recommended that housing development be sought through land pooling projects. It will help plan a particular area right from the outset and thus ensure desired infrastructure required for residential colonies and apartment complexes. The painfully lengthy process of acquiring licenses is another impediment towards the smooth functioning of the sector. To address this issue, the developers have been asking the government to facilitate a one-door licensing process.</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;">The ceiling imposed on realty lending by the Nepal Rastra Bank (NRB) resulted in a slowdown of the housing sectorâ€™s growth. The central bank had directed BFIs to limit lending exposure to the housing sector to 25 per cent of their total investment portfolio. It had done so to deal with the fast inflating realty bubble. At odds with each other not too long ago, housing developers and bankers now collectively look at ensuring smooth recovery of realty lending. According to bankers, the current slowdown in the housing sector has much to do with the mismatch in demand and supply. The construction of apartments has continued unabated while their performance in terms of selling the properties has been dismal. Building trust among the targeted buyers is of vital importance too because people still havenâ€™t come to terms with trusting realty developers.</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;">Housing entrepreneurs who resisted selling for fear of descending price levels have now started to slash prices â€“ as much as 30 per cent â€“ to tempt buyers and recover their investments. Despite transactions nose-diving, the developers had hoped for a recovery but are now finding it hard to entice buyers even at reduced prices. The slowdown in realty has affected the BFIsâ€™ performance as their loan portfolio is hugely dominated by the housing sector. Quite naturally, despite committing long-term lending to the sector, the banks have now started to exert pressure for early repayment in an attempt to minimise their realty loan exposure. Currently, the total investment in the housing sector is Rs 97 billion which is 18.9 per cent of the total investments made by the BFIs, states Bhaskar Mani Gyawali, the NRBâ€™s Executive Director â€“ BFI Regulation Department.</span></div>
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	<span style="font-size: 11.5pt;">Central Bankâ€™s Influence and Government Policies</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;">The housing industry has been facing a crisis-of-sorts ever since the NRB issued stern directives in an attempt to prevent simulated skyrocketing prices of housing properties. The mandatory provision of declaring income source for purchase of properties worth a certain amount is another major hiccup. The hike in interest rates on loans from 9 to 17 per cent has further compounded the prevailing miseries. These are just a few among the many bottlenecks that have blocked the desired growth of the housing sector, industry entrepreneurs lament. </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;">The governmentâ€™s imposition of capital gains tax on housing transactions, too, has drove away buyers. It is but understood that revenue mobilisation through taxation is the primary objective of the government. Therefore, it comes as no surprise that the government has hiked property tax as well. Besides, the NRB also wants to minimise the speculative aspect of the housing business to prevent the bubble burst. </span></div>
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	<span style="font-size: 11.5pt;">Buyersâ€™ Viewpoint</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;">Unreal prices of apartments coupled with increasingly higher interest rates on home loans have made it extremely unaffordable for the general public to purchase new properties. And those who can afford are not too sure about the safety standards of these vertical structures especially with the imminent threat of an earthquake hitting the country anytime. They know that there are some developers who are out there to make a fast buck ignoring the threat to peopleâ€™s lives in the event of a natural calamity. </span></div>
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	<span style="font-size: 9.5pt;">However, the central bankâ€™s decision to create a separate category for home loans of up to Rs 6 million as â€˜personal home loansâ€™ has come as a respite and is widely appreciated. It has also provided a fresh lease of life to the low-lying housing sector. With some developers claiming to have sold a good number of units the moment the properties are opened for booking, rumours of artificial transactions have kept the consumers at bay. â€œThe buyers also expect a certain amount of transparency on the part of the developers to avoid the situation of investing money where the developers havenâ€™t put any,â€ says Ashoke SJB Rana, the President of Nepal Bankersâ€™ Association. Having a transparency mechanism will enable the buyers to assess the developersâ€™ strength and give them confidence to invest. </span></div>
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	<span style="font-size: 11.5pt;">Building Parameters</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;">The Department of Urban Development and Building Constructionâ€™s (DUDBC) monitoring mechanism ensures that the apartment complexes are designed as per established specifications to meet safety requirements. It also warrants the size of open space, size and number of units, road access and ground coverage among others. The department is responsible overall to guarantee the completion of procedures on part of the developers before commencing construction. Nepal is the 11th riskiest earthquake zone in the world and the Kathmandu Valley itself is located in one of the worldâ€™s most seismically active zones. This makes it imperative for the developers to plan appropriate structural designs and adhere to the National Building Code.</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;">The housing companies acquire their licenses only after fulfilling the required procedures. The developers get planning permit from the Town Development Committee (TDC) based on existing regulations and by-laws. The apartment buildingsâ€™ plans and designs that meet the National Building Code on safety, electricity, parking space, fire, other disasters and structural design are later approved by the DUDBCâ€™s division office, informs its Deputy Director General Shivahari Sharma. The projects also need to pass the Environmental Impact Assessment (EIA) for big scale ventures and Initial Environment Examination (IEE) for the smaller ones. </span></div>
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	<span style="font-size: 11.5pt;">Housing for the Masses</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;">While the housing companies have been primarily catering to the needs of the wealthy, the lower middle class and the poor still cannot afford the properties developed by these companies. Therefore, though the housing business is providing shelters, it has overlooked the needs of the urban poor. In contrast, housing projects in a lot of countries look at addressing the needs of the economically weaker section of the population on a prioritised basis. </span></div>
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	<span style="font-size: 11.5pt;">Housing for Foreigners</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;">Nepal can very well attract foreign direct investment (FDI) by allowing ownership of apartments to the expatriate community living in Nepal. The government has floated an idea to this effect to let foreigners buy apartments for residential purpose. A preliminary plan has already gathered shape for this purpose. If this turns into reality, it promises to resurrect the housing industry and lend dynamism to the construction sector. Since the housing sector needs fresh capital injection to keep the momentum going, allowing foreigners to buy apartments could hold it in good spirit. This will make the sector more financially viable and generate greater employment courtesy the construction boom. </span></div>
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	<span style="font-size: 11.5pt;">Looking Forward</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;">â€œThe government must give the housing sector the importance it deserves and treat it as a national priority,â€ says Rajbhandary of Comfort Housing. Provision of affordable housing in partnership with the private sector and making newly constructed and under construction buildings safe for residential purpose will be critically important in the days to come. Quality urban housing is at the heart of the struggle to accomplish enhanced living standards. Till about a decade ago, there were limited developers but today, the consumers have a varied choice in the nature and price of the products. Along with the demand, appropriate products, for example, low priced houses are bound to enter the market sooner than later. </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;">If all existing problems settle with time, investing in a developer-built property can prove to be a sound idea because it spares one the hassle of managing sewage, construction materials and labour, water, electricity and TV cable connections and is more secure and comfortable, in general. The developers too would do themselves no harm if they adhered to safety standards and practiced customer satisfaction for a market that is on the course of getting matured. The hugely untapped potential of budget housing holds much promise because thatâ€™s what the largest section of buyers is waiting for. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Given the scarcity of land and the ridiculously high prices of the little land available within the city limits, there will be no option other than to grow vertically, says Umang SJB Rana, the CEO of Westar Properties. Nepalâ€™s urban population is expected to rise 18 per cent by 2015 and 30 per cent by 2030 which underlines the huge potential and a promising future for the housing sector. By correctly identifying the target segment, developing feasible projects, introducing right products at the right time and strategising marketing efforts in accordance will certainly ensure that the housing business is here to stay. Investors who are buying properties only for secondary transactions instead of residing in them end up creating â€˜ghost housesâ€™ galore. It would be great if the apartment complexes and housing colonies find buyers who are actually interested in turning them as their â€˜homesâ€™. The day is not too far when we shall see vertical structures dominate Nepalâ€™s urban landscape all over. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.05pt;">n</span></div>
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<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Brihat Community Living - Sitapaila</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;">â€œEco-friendly homeâ€ is an achievement for the urbanization, to achieve one goal - to create a home which is â€˜friendlyâ€™ to its inhabitants and sympathetic to the environment in which we live. Our Project incorporates a range of eco-friendly products and concepts.</span></div>
<div style="margin: 5.65pt 0in 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Its main features include:</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">1. Solar electricity provision â€“ for streetlights</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">2. Rain water recharge for water conservation</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">3. Proper garbage disposal system for waste reduction</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">4. UV protection sticker on south facing windows</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">5. Use of concrete lightweight blocks in place of bricks- for reduction of carbon monoxide emission and conservation of clay</span></div>
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<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Owned &amp; Marketed By:</span></div>
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<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">TCH Tower - IV, Ground Floor, Block - A</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Sitapaila, Kathmandu, Nepal</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Tel: +977 1 4282086/4286821</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Fax: +977 1 4288820</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">E-mail: info@brihatinvestments.com</span></div>
<div style="text-align: justify;">
	<a href="http://www.brihatinvestments.com/"><b><span style="font-size: 9.5pt; line-height: 115%;">www.brihatinvestments.com</span></b></a></div>',
			'published' => true,
			'created' => '2011-08-08',
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			'description' => 'The conventional system of owner-built housing is still predominant but with the growing demand for land-for-house, the Kathmandu Valley is experiencing a space-constraint in recent times. It is becoming......',
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	(int) 10 => array(
		'Article' => array(
			'id' => '378',
			'article_category_id' => '40',
			'title' => 'Downtown Housing Company(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 10pt;">D</span><span style="font-size: 9.5pt;">owntown Housing Company Pvt Ltd, a parent company of Downtown and City View Apartments, was founded in 1992 as a developer and manager of high-quality property units. Over the years it has provided products and services to accommodate the urban middle class by developing high-quality residential properties. Today, Downtown Housing Company is one of the most respected and diversified service firms available with dedicated people who serve a growing client base that reaches far and beyond.</span></p>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
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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;">Downtown Housing manages the process from conception through completion - an approach that has been perfected over time to exceed the clientsâ€™ expectations. Downtown proactively works to ensure every property as once-in-a-lifetime investment opportunity for its clients, giving it the special care and attention to detail that enhances value for living within.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">City View provides clients with the kind of peace and tranquillity they want. Only 38 exclusive apartments (including 2. duplex pent houses) have been built here, with rich and stylish complex.</span></div>
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<div style="margin: 0in 0in 5.65pt; text-align: center;">
	<span style="font-size: 15.5pt;">Guna Colony </span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt; letter-spacing: -0.2pt;">E</span><span style="letter-spacing: -0.2pt;">stablished in 1998, Guna Colony Pvt Ltd is a large and reputable company involved in property development. It has already completed properties like Stupa Housing in Sinamangal, Stupa Colony in Buddhanagar, Reliable Colony in Bhainsepati and LP Apartment in Lazimpat. New projects such as Bhainsepati Apartments, BN Apartment and GN Apartments in Gwarko have already been launched.</span></div>',
			'published' => true,
			'created' => '2011-08-08',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Downtown Housing Company Pvt Ltd, a parent company of Downtown and City View Apartments, was founded in 1992 as a developer and manager of high-quality property units. Over the years it has.........',
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	(int) 11 => array(
		'Article' => array(
			'id' => '377',
			'article_category_id' => '40',
			'title' => 'Housing In BirgunjSlow Growth, High Hopes(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong><i>By Bimmi Sharma</i></strong></span></div>
<div style="text-align: justify;">
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<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">H</span><span style="font-size: 9.5pt;">ousing business may be mushrooming in the Kathmandu Valley. But the story is different in Birgunj. People with diffent backgrounds find it quite normal to live in separate flats and apartments within the same building in the capital city.&nbsp;But such concept of community living hasnâ€™t gone down well with Birgunj locals. They still prefer to stay separate from people of other religion, caste or culture. It is this mindset that is the major impediment for a flourishing housing industry in the city, lament housing entrepreneurs. They complain of having a difficult time implementing the idea of community housing that was first conceptualised here 14 years ago. So far, all Birgunj could manage are three apartment complexes and a fourth one under construction. </span></div>
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	<span style="font-size: 9.5pt;">Nanakchand Ashwani and Shyam Rungta were the first ones to enter the housing business here. They have built two apartment complexes - â€˜Ganeshâ€™ and â€˜Lakshmiâ€™. These two five-storied apartment complexes have a total of 40 units. The flats at Ganesh were priced at Rs. 900,000 and at Laxmi at Rs 1.35 million per unit. However, these flats remained unsold for a long time. </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;">Eight years after these attempts, Triveni Group constructed a 10-storied apartment complex â€˜Triveni Gopalâ€™ in Birta area of Birgunj. Built at a cost of Rs 50 million by Birendra Sanghai of the Triveni Group, the complex has 72 units in total. Sajjan Kumar Chimariya, the manager of the complex says, â€œApartment culture is yet to pick up in Birgunj because people are more comfortable with the idea of building houses on their own land and to enjoy complete ownership.â€ He adds that the project barely managed to recover the investment and did not yield any profit whatsoever. </span></div>
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	Â </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;">Despite the apartments having all facilities including electricity, water, garden, park and security, people find these rather expensive and inconvenient. Out of the 72 flats in â€˜Triveni Gopalâ€™, 50 are occupied while the owners of the rest 22 units havenâ€™t started residing here. They rather want to sell their properties. â€œThe countryâ€™s volatile situation is primarily responsible for the lukewarm response towards housing in Birgunj,â€ says Chimariya. He adds, â€œThere is no future for housing business in Birgunj. Itâ€™s advisable that the new entrants donâ€™t enter the market here.â€</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </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;">â€˜Prasanna Apartmentsâ€™ which came into being a year ago has started getting residents moving in already. Tara Shumsher Rana, a Director of â€˜Prasannaâ€™ apartments opines, â€œThe housing business is experiencing a low right now but it has a good future in Birgunj due to the impending development of infrastructure in and around this city.â€ The construction of Nijgadh International Airport close to Birgunj, Kathmandu-Nijgadh Fast Track Road, Integrated Customs Checkpoint, Birgunj-Thori Road, Birgunj University and a well developed agriculture market are bound to make Birgunj a more attractive place to live. These developments will have a positive impact on the housing industry, opines Rana. His company Prasanna Constructions is in the business of constructing buildings for its clients for 25 years now. Built at an investment of Rs 50 million, â€˜Prasanna Apartmentsâ€™ has 20 flats altogether and costs anything between Rs 3.2-4 million. Of the 20 flats, only thee are remaining to be sold, Rana informs. â€œThough the present situation is not conducive, once there is political stability and economic progress begins, housing business in Birgunj will definitely flourish,â€ Rana says optimistically. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 9.5pt;">Ashok Kumar Baid, an industrialist who owns Shalimar Cement has joined the housing business and plans to build â€˜Kamdhenu Apartment Homesâ€™ using the â€˜Kamadhenuâ€™ brand under franchise from the Indian owner of the brand. To be constructed at an investment of Rs 800 million, this 12-storied apartment with 134 units will be ready for occupancy in two yearsâ€™ time. Each flat in this â€˜first apartment complex of international standard in Birgunjâ€™, as the developer calls it, will cost Rs 7-8 million. â€œInterested buyers will need to pay 20 per cent of the total amount upfront. The facilities include swimming pool, health club, gym, park, garden and provision store,â€ says Baid. He says he is confident of selling all the units of his project which will come up at Ward 13, Adarshanagar in Birgunj. Like Rana, Baid too is optimistic that housing industry in Birgunj will grow as various developments are taking place in and around Birgunj. He says, â€œBirgunj is a leading business destination and the development projects being implemented in and around here will definitely benefit the housing industry as well as other businesses.â€</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<p style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">â€˜Kamdhenu Apartment Homesâ€™ will be the fourth apartment complex in Birgunj. The previous three apartment houses have a collecgive investment of Rs 150 million. When the investment proposed for Kamadhenu and some other projects that are in the pipeline are added up, the total investment goes up to Rs. 1 billion. Ashok Kumar Temani, the President of Birgunj Chamber of Commerce and Industry is upbeat about the business potential of apartment complexes. â€œIn the future, Birgunj will be like Shanghai or Mumbai. Once the projects which are being constructed at break-neck speed are completed, we will see skilled workers flocking to this city for work,â€ Temani predicts. He continues, â€œThese peopleâ€™s housing requirements ensure a bright future for the housing industry here.â€ </span></p>',
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			'description' => 'Housing business may be mushrooming in the Kathmandu Valley. But the story is different in Birgunj. People with diffent backgrounds find it quite normal to live in separate flats and apartments within the...........',
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	(int) 12 => array(
		'Article' => array(
			'id' => '376',
			'article_category_id' => '40',
			'title' => 'Growing Housingin Pokhara(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12px;"><i>Text and photos: Deepak K Shrestha</i></span></div>
<div style="text-align: justify;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">With increasing urbanisation and modernisation, the housing industry in Pokhara is gaining momentum though not as fast as in Kathmandu. Along with tourism, education and the health sector, housing is fast becoming an attractive investment prospect for investors here. In terms of population growth and migration, Pokhara is second only to Kathmandu. However, the community housing business has not grown in the same proportion. Entrepreneurs believe that since it is a new concept, people will take time to get attracted to this concept. However, it is already a seven-year-old industry in Pokhara, with two companies already in it while other two are preparing to enter the fray.<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;">Annapurna Developers Pvt Ltd (with the brand name â€˜Fishtail Residencyâ€™) and Pokhara Homes Pvt Ltd have started operations already in Gharipatan of Pokhara Sub Metropolitan City. These companies claim to provide facilities at par with the housing complexes in Kathmandu such as good roads, water and power availability as well as health club. This has attracted buyers who have the means and desire to live in such housing complexes. Besides these, Road Show Real Estate Pvt Ltd and Gandaki Real Estate Pvt Ltd have entered this business recently. While the Road show has its project at a location called â€˜Deepâ€™ that is in the Ward No 16 of Pokhara Sub-Metropolitan City, Gandaki has its project at Lekhnath Municipality under the brand name â€˜Lekhnath Dream Colonyâ€™.&nbsp;Investors claim that the consumers have shown significant interest lately for buying such property.<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;">While renowned contractor and industrialist Surya Bahadur KC is the investor for Pokhara Homes Pvt Ltd, Dhruba Kumar Shrestha, Kalu Gurung and Bindu Kumar Thapa are the investors in Fishtail Residency, Road Show and Gandaki Housing respectively.<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;">Pokhara Homes started building houses on 70 ropanis of land about seven years ago but faced adversity for the first few years. Tej Baniya, the Operations Manager of the company said, â€œWe started doing good business only about three-four years ago.â€ A total of 54 houses were built under phase-I out of which 52 have been sold already. â€œWe are starting phase-II in the next six months which will have 32 units,â€ Baniya informs. The company sells two-and-a-half-storied bungalows, complete with five bedrooms, built on 8-10 annas of land. Baniya claims that each house costs Rs 9-9.5 million just for the construction. He further says that the mere announcement of phase-II has attracted 17 bookings already. Pokhara Homes is also constructing 20 colonies and 14 separate houses near Chorsanghu in Pokhara. The houses and apartments in this area will be less expensive than the ones in Gharipatan.<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;">All housing companies in Pokhara are conducting business with prior approval from the authorities concerned â€“ i.e. municipality and Pokhara Valley Town Development Committee. â€œDue to close proximity of Gharipatan area to the airport, we are not allowed to construct buildings higher than two-and-a-half-stories,â€ says Bhupendra Shrestha, the Marketing Director of Fishtail Residency. The company which started work about four years ago on 21 ropanis of land has already sold 40 of the total 66 units constructed. The buyers have already started residing in 30 of these units, each one a two-and-a-half-storied, four-bedroom bungalow costing over Rs 10 million.<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;">Gandaki Real Estate Pvt Ltd that was primarily dealing in real estate holdings thus far has started constructing housing units on 81 ropanis of land in Talchowk of Lekhnath-8. The company has a target of building 30 units within a year, each unit occupying 5.5-8 annas land and priced between Rs 9 and 15 million.<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;">Suman Kumar Gurung, the Pokhara Branch Manager of Road Show Real Estate said that a total of 108 units will be constructed in Deep of Pokhara-16. The units built on 5-9 annas are targeted at the upper and middle class consumers. The housing complex will have kindergarten, tennis court, swimming pool, cable television, telephone and power generator among other facilities. </span></div>
<p style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">The stakeholders of Pokharaâ€™s housing industry include locals as well as the rich from the capital. Nepal Armyâ€™s retired general Pyar Jung Thapa and Galaxy Schoolâ€™s founder Gita Rana have already bought properties in the city. Besides the established businessmen, the newly rich people as well as&nbsp;retired soldiers of foreign armies have shown tremendous interest in Pokharaâ€™s community housing units. Gurung says, â€œPeaceful environment, security and a modern lifestyle is attracting retired professionals immensely.â€ He adds that the housing industry in Pokhara has a great future because the very name of the city rings a bell in peopleâ€™s ears since it is considered â€˜heaven on earthâ€™. Political instability, the Central Bankâ€™s endless directives and lack of investment climate have affected the housing sector as well. But the housing entrepreneurs remain optimistic that the flourishing housing business outside the Kathmandu Valley will be provided encouragement by the government.</span></p>',
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	(int) 13 => array(
		'Article' => array(
			'id' => '375',
			'article_category_id' => '40',
			'title' => 'We Need To Reinvigorate The Real Estate Climate (june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 14px;"><b><span style="line-height: 120%;">Bijay Rajbhandary</span></b></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 7pt; line-height: 120%;">Chairman and Managing Director</span></div>
<div style="text-align: justify;">
	<span style="font-size: 7pt; line-height: 115%;">CE Construction Pvt Ltd<br />
	<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	Housing culture has been in practice for almost a decade now. It is certainly getting popular as it provides infrastructure facilities like security, drinking water, electricity, internet, common space and other facilities. However, despite the growing trend of community housing, we can't expect the individuals to completely stop building independent residences.</div>
<p>
	&nbsp;</p>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">You have been in the housing industry for some time now.&nbsp;Where do you stand currently? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	Real Estate is our core strength but at the same time, we have been operating in other sectors as well. We have a wide range of properties in different locations in and outside of Kathmandu and our ultimate objective in the real estate is to serve the mass. Currently, the housing sector is experiencing a slow growth. Different stakeholders such as the government, regulatory body, financial institutions, developers, investors and individual buyers are somehow responsible for the slow pace of the housing industry.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">The NRB has relaxed lending for the housing sector recently. How big is the relief? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	It has definitely provided relief to some extent. But the impact is yet to be seen because there is a liquidity crunch in the market and the banks have a problem maintaining credit-to-deposit ratio. We need to work very hard to regain a prosperous real estate climate.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">As the banks are shying away from investing further in this sector, how do you plan to take your projects forward?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.15pt;">We have been using different financial tools on a project-to-project basis and the major portion of our cash flow is coming through sales. There are basically two categories of buyers the speculative investors who intend to sell the property at later date at higher prices and the end users who really want to settle in those homes. Both types of people seem quite reluctant to invest in this sector at the moment because of political uncertainty and unclear policies. We are working hard to come up with innovative tools to cater to both the categories. At the same time, we are introducing attractive packages for the buyers. Project management being our strength, we periodically map our project execution plan, assess the risks and the uncertainties and act accordingly. Even though the banks are going through a difficult time, they have been extending cooperation towards us because of our credibility. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">The interest rate has tremendously increased increasing the cost of housing development and eventually the price. Thus the properties are now beyond the general public's affordability. What do you suggest to tackle this problem?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.15pt;">Yes, the housing sector is reeling from the impact of the interest hike, however, it is minimal. The projects are usually funded through equity, borrowings from the financial institutions, credit from the vendors and subcontractors and most importantly, from sales. In general, the share of bank funding in a project is about 30 to 45 per cent of the base cost. Of the sales price, the share of bank funding is only 25 to 35 percent. So, the interest hike of 5 per cent has an impact of about 1.25 to 1.75 per cent on the sales price. The developers should be willing to absorb that from his profit in view of this difficult time. Therefore, the slaes price need not go up just because the interest rate has gone up. In order to continue with the planned projects, the developers will have to resist hiking the price and be content with lower profit. This is the best strategy till the buyers are in wait and watch mentalality. The impact on sales is not because of the price of the product itself but due to the interest on loan which buyers take from the financial institutions. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">Don't you think that the houses and apartments are priced unnaturally high? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">When we talk about the price of the housing products, one needs to take into account the basic components: the price of the land as well as the cost of the building and infrastructure. So, in the current context, developers can only play with the land price as the other two components are easy to calculate. We ask the buyers compute the price of the above mentioned components of our units and let them sum it up. As far as the land price is concerned, buyers can check the price in the project neighbourhood. Our price turns out to be 20 to 25 per cent less than what the buyers come up with after such calculation.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	Since the buyers are getting the finished product, they save in the hassles that they may otherwise go through when they build their house on their own. If you assign monetary value also to these hassles, the houses that you buy from a developer are much cheaper than what you will have if you construct it on your own.&nbsp;In our case, it is even cheaper because we are the single real estate solution provider- we buy the land ourselves which saves in the service fee of the broker, we do in-house designing, we ourselves are the contractors and we buy local material in bulk and import many branded materials through our trading division. In comparison, individual house owners building their own house have to buy all these on their own in retail. In that process they end up paying higher for everything. And quality is the further value addition when you buy from a developer because the developers are equipped with resources like manpower, equipments and construction technology.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">It is said that apartments are not much preferred by Nepali people. Therefore, a lot of apartment units from the developers are lying unoccupied. How do you view this?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.15pt;">&nbsp;This is very true but at the same time, we do need to understand that any change takes time. Currently, a number of units of completed apartments are either still unsold or unoccupied even if they are sold. Therefore, progress of many projects is slowed. However, this slowdown in the progress is not only due to inadequate sales but also due to lack of fund as bank lending is curtailed. Many developers fear that if they borrow at high cost and finish the units but they remain unsold for long, they may have to incur very high maintenance cost for such apartments.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	However, we in CE are trying to complete all our projects on time to send a positive message across. Presently, the criteria for the buyers selection of a property are: the credibility of the developers and the physical status of the project. Buyers are comfortable in buying finished products because it is like buying any other commodity. Counselling as well as other marketing tools might not be that effective at the moment as compared to putting on sale the finished product.<br />
	 </div>
<div style="text-align: justify;">
	No matter how the people at present may view the apartments, the apartment projects are viable because the price that the buyers of such apartments will be paying will be lot cheaper when compared to the upgraded lifestyle that the buyer can enjoy in such apartments. It is just a matter of time before people shed their inhibitions about buying apartments.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">What are the required measures to improve this sector?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.05pt;">First of all, the country needs to assess whether real estate is a need for us or not. If yes, all the concerned parties including the developers need to extend their full cooperation. To gain the confidence of the buyers, I have different recommendations to my colleagues. Those who have not started their projects must have a thorough plan to work out the cash flow before they start the project. They must also have a full proof marketing plan. As for those who have started their projects, their primary responsibility should be to complete the sold units fast and meet the contract conditions as well as reschedule construction of unsold component of the project based on cash flow and sales forecast. This strategy will not only help win the confidence of the buyers and investors but also that of the financial institutions.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.15pt;">The average age of a building is around 50 years. What will happen to those living in the apartments and individual houses developed by housing developers after this time period? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The age of a building depends on the technology used to build it. The property is insured against earthquake, fire or any other kind of damage. If something happens during the lifetime of a building, either a community housing or an apartment building, it will usually be compensated through insurance.&nbsp;Once the building's lifetime expires, the law clearly states that the ownership of the property will be ascertained on a pro-rata basis. You have two options - either to rebuild the property with the same proportion of ownership or if all the flat owners of a particular property agree to sell it, they will get the sales proceeds divided amon themselves on a pro-rata basis. If the property value grows tremendously during the lifetime of the building or afterwards, the owners will have the option to demolish and come up with a different product. For example, it can be a commercial complex or any other product that may yield higher return. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">Is there an issue with the ownership of the flats? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	Well, there is no issue whatsoever at all regarding flat ownership. Once you buy a flat, you get an ownership certificate from the Land Revenue Office. When a building is complete, the municipality and the department of urban development and physical planning inspect it and issue the completion certificate. It then recommends the Land Revenue Office which issues you the certificate of ownership.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">How long will it take to change the housing culture from independent houses to community living in flats and condominiums ?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	Housing culture has been in practice for almost a decade now. It is certainly getting popular as it provides infrastructure facilities like security, drinking water, electricity, internet, common space and other facilities. However, despite the growing trend of community housing, we cant expect the individuals completely stopping to build independent residences on their own. This is because housing projects will not be able to meet the individual requirements of all the people.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">Tell us something about your ongoing projects? </span></strong></div>
<p style="text-align: justify;">
	<span style="font-size: 11pt; line-height: 115%;">CE's current housing projects include: Vinayak Colony (176 units of independent houses) in Bhaisepati, Grande Towers (529 High-End apartments) in Dhapasi, Veena's Residency (76 units independent houses) and Harmony Housing (74 units independent houses). Similarly, we have recently completed Vinayank Colony-phase 1 in Bhaisepati, Rio Apartment in Kupondol and The Retreat Apartment in Bijayshwori. We are also coming up with two affordable independent housing projects in Sitapaila and Budhanilkatha.</span></p>',
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	(int) 14 => array(
		'Article' => array(
			'id' => '374',
			'article_category_id' => '40',
			'title' => 'Developers-built Housing Market Is On The Rise (june 2011)',
			'sub_title' => '',
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			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 14px;"><b><span style="line-height: 120%;">Om Rajbhandary</span></b></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 7pt; line-height: 120%;">CEO and Chairman</span></div>
<div style="text-align: justify;">
	<span style="font-size: 7pt; line-height: 115%;">Comfort Housing Pvt Ltd</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	Over the past three years, the land prices have risen astronomically high and it has become a speculative market. Investors have invested because they saw prospects for profit. Such investors are not selling as&nbsp;they are waiting for higher prices. And they will continue holding as long as they have the capacity to hold.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>How do you evaluate the housing industry at present?</strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">I started my career as a developer and we are the pioneer in promoting community living concept in Nepal and real estate as an industry. My aim is to establish this as a professional institution because this is a very large industry where everyone can be adjusted. Human life does not exist without real estate because any building, whether it is hospital or a theatre or a residence, belongs to this sector. So, this sector should be developed in a proper way. When we compare Nepal with any other country, our urbanisation is largely unplanned. Housing industry is dependent on three elements - government, individuals and the developers. Our government has a different agenda and the government people are not bothered about well managed urbanisation. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>How do you look at the future of this industry?</strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.15pt;">Nepal's 15 per cent population live in urban areas whereas the global urban population today is 50 per cent. By 2030, our expected urban population will be around 30 per cent while the global urban population will reach 70 per cent.&nbsp;According to a survey, in Nepal, we require nearly 270,000 housing units annually. In 10 years time, one million units will need repair and maintenance. Likewise, within the Kathmandu Valley, we will have a deficiency of around 40,300 units every year. So, it has a bright future and huge potential. On the other hand, secondary transaction is equally important. In my opinion, in community living, there is 10 to 15 per cent secondary transaction. The secondary transaction also generates revenue for the government.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>How can the housing sector be revived from the current problems, such as the restrictive rule of Nepal Rastra Bank?</strong></div>
<div style="text-align: justify;">
	A number of factors affect the housing market. They are: government policies, financial institutions, building materials, building technology, households, land prices and the real estate agents. We have different policies coming from the government and the Nepal Rastra Bank (NRB). There are a few aspects in the government policy that need to be addressed immediately.<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">First is&nbsp;the capital gain tax rate that is 10 per cent for any transactions within five years and five per cent after five years. Thre is difficulty for people to afford 10 per cent capital gain tax. So, when the people sell the property in the secondary market, they report transaction figure to the government, they show a lower than the actual figure. This ultimately affects government revenue. For example, if I buy a property for Rs 10 million and sell that in a year-and-a-half for Rs 20 million, then my capital gain is Rs 10 million. And from that Rs 10 million, I am expected to pay Rs 1 million as capital gain tax to the government.&nbsp;To avoid such taxes, people are showing Rs 12 million on paper though the actual transaction is for Rs 20 million. This way, the government is losing revenue. Once the property is liquidated, the money is normally deposited in the bank. But while depositing the money in the bank, you have to show the source of the money. Hence, only Rs 10 million can be deposited. The rest Rs 8 million remains out of the system. This is one of the reasons for the current liquidity crisis.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Second, while buying land of more than Rs 3 million, it is mandatory to declare income source. This is the other concern that needs to be addressed immediately.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">Housing must be recognised as an industry so that the revenue goes into the state coffers. The NRB limitation has now been relaxed and a new loan portfolio category - home loan - has been created as well. I think the banking sector too should have a positive attitude towards housing industry. There are three different perceptions among the banks - some say that the real estate is an industry and profits can be made from this. Thatâ€™s why they have made investments in this sector. Others say that the real estate is a future industry and they need some experience in this sector. So they have made limited investments. There are yet others who regard as a very risky industry. Therefore, they have made very small investment in this sector.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	We are currently at the bottom of the real estate cycle. To recover from such a state, these government policies and the perception of the banking sector towards this industry should change.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>Though the NRB has relaxed lending, some of the housing developers say it is yet to make its impact in the market. Why such slow response?</strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Over the past three years, the land prices have risen astronomically high and it has become a speculative market. Investors have invested because they saw prospects for profit. Such investors are not selling as&nbsp;they are waiting for higher price. And they will continue holding as long as they have the capacity to hold. Some investors are keen on recovering the principal amount if they are not in a position to make profits. Some other investors are willing to liquidate even at a loss so that they may not need to continue bearing the financial burden. We are at a stage where even if we can't make profits, we have to liquidate the property. Our strength will be tested in mid-July because there will be pressure from banks. Our inventory holding capacity too will get revealed. Today, if you can sustain yourself, you will emerge winner but if you can't, you will have to liquidate to get the return on interest and principal. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>When the bank's investment was curbed, how severely were your projects affected? How did the companies manage to take their projects forward?</strong></div>
<div style="text-align: justify;">
	As per the data from the government authorities, fiscal years 2007-08 and 2008-09 witnessed the highest number of new projects registration while 2009-10 had very few and in 2010-11, there are no new projects registered at all. The projects approved in the past are making progress, but some of them are progressing very slow or they have downsized.<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.15pt;">An investor will definitely look for maximum returns. But people do not have much confidence in the real estate industry at present. So people are not putting in money. Similarly, banks are also not investing which is why this industry has slowed down.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">One indication of low sales of apartments is that Nepalis are not much attracted towards group housing. What should be done to assure them that such houses are better than individually constructed residences?</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">I personally feel that people have gained more confidence in group housing now. A decade ago, this concept was very new. Today, a number of developers have entered the market with their projects because the concept has been accepted by the people. The success or failure of a project is a different issue altogether. The concept of community living has been largely accepted by the Nepali people. Now, the percentage of owner-built houses is declining while the developers-built housing market is on the rise. In developed countries, all the people buy houses from developers only. Once you are very rich, then you may want to go for custom-built houses.<br />
	<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">People complain that the developer-built houses and flats are unreasonably priced. How can the price be brought down to make the houses affordable for more people?</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">In my opinion, the prices of the developer-built houses are reasonable at present. Therefore, the prices are not going to come down from what they are. Though some investors and developers may sell their property at even lower price than what it is at present, that will be only in case of financial distress. The land purchased by the developers was very expensive in the first place. The interest on the capital borrowed is very high. Similarly, there is a high uncertainty cost. Besides, human resource cost is getting expensive by the day. In all ways, if you compare with yesterday's price, today's price is at the same level. But the expenses have certainly increased. So, the developers have cut down on their profit. They are at a point where they can't come down any further in price.&nbsp;</span></div>
<div style="text-align: justify;">
	<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>that means there is no plan to build more affordable housing?&nbsp;</strong></div>
<div style="text-align: justify;">
	It is true that developers are not coming up with affordable housing. As a developer, we should come up with low priced products targeting the wider mass. While we at Comfort Housing are planning to come up with affordable housing, some colleagues in&nbsp;inthis industry have already brought such products to the market. So, the products will come to the market as per the demand in the market. The problem is that while the people have low budget, they have a high value house in their mind. They should also know how much they can afford and what they will get within that.</div>
<div style="text-align: justify;">
	<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>Commercial and residential housing projects are centred in few cities, mainly in the capital. Why are developers not interested to take such projects in the semi-urban areas and small towns?</strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">Well, the concept has changed now. I had started a project in Dharan a long time ago. At that time, the community living concept was not popular. The migrant population of Kathmandu is 39.6 per cent. Everyone wants to own a house here as Kathmandu is the capital city. That is why developers are mainly concentrating in Kathmandu valley. Now that the peace process has progressed to some extent, development outside the Kathmandu valley is bound to take place in a year or two. The land prices in all the commercial towns have gone up like anything and that is one of the indicators. Even in the Kathmandu valley, the projects have come up in the suburbs. Our urban area is expanding by 4.6 per cent every year. Today, three to five kilometres periphery of the ring road is also considered urban area. So, the developers are going beyond the ring road and that is why we see a lot of housing projects centred within this belt. I feel that we should go further beyond that. We should focus on the development of suburban areas so that we can minimise the load on the carrying capacity of the city.</span></div>
<div style="text-align: justify;">
	<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">The Supreme Court recently declared null and void the rule that required all transactions above Rs. 5 million to be made through bank. How much relief would it provide to the industry?</span></strong></div>
<p style="text-align: justify;">
	<span style="font-size: 11pt; line-height: 115%;">Not much because the problem is more with the worry and suspicion the people have about the situation tomorrow. They are not sure what sort of new charges may be levied then. However, this ruling by the Supreme Court will help to some extent.</span></p>',
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			'content' => '<p>
	<span style="font-size: 14px;"><strong><br />
	</strong></span></p>
<p>
	<span style="font-size:14px;"><strong>The Taxpayers Of This Country Are The Major Donors To Nepal (july 2011)</strong></span></p>
<p>
	<br />
	 </p>
<div style="text-align: justify;">
	<span style="font-size: 12px;"><strong><img align="left" alt="taxpayers" border="1" height="195" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/interview(4).jpg" style="width: 139px; height: 195px;margin:10px;padding:10px;" vspace="5" width="139" />Dr Thomas Gass</strong> is the first residential Ambassador of Switzerland to Nepal. He was previously Switzerland's ambassador to the United Nations in New York and spent five years there prior to arriving in Nepal. He holds a PhD in biology and began his career with the Swiss Agency for Development and Cooperation (SDC) in 1988. He has held positions in the Swiss civil service and with the United Nations. Gass was the Vice-President of the executive board of the United Nations Development Programme and United Nations Population Fund. He has also lived in Guyana and worked in Africa and the former Soviet Union. In an interview with Pinaki Roy of <i>New Business Age</i>, Gass discussed a diverse range of issues from Swiss cooperation and its impact on the Nepali society to the constitution writing process in Nepal. Excerpts:<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><strong>Switzerland is among the few countries that initiated financial assistance to Nepal since 1959. How do you evaluate Swiss cooperation over the last 52 years?<br />
	<br />
	<br />
	</strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">I would say that this has been an extremely fruitful partnership that has encompassed mutual learning and has evolved over the time as any working partnership should. Initially, Switzerland implemented many projects directly and we had up to 100 experts working here at a time in the 1970s. We work differently today as we place more emphasis on the leadership and the coordination of the government and make use of national capacities for our projects here. We work through the ministries, INGOs and the local NGOs among others.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">One of your primary objectives has been to build rural infrastructure, particularly, the suspension bridges. Do you systematically assess the economic impact of these bridges constructed mainly by Swiss support?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">Yes, we do systematically assess the impact of our projects. But we don't assess these projects only in an economic way; we also look at them from a social and inclusion point of view. Over 1,600 trail bridges have been built and 3,500 maintained in the last 10 years. As a result, over 4.8 million people have better access to services through safer river crossings. On an average, each bridge has reduced walking distance by 2.5 hours and about 4 million person-days of employment have been generated through these bridges. These bridges are turnkey projects constructed by the villagers and the community. In the last four years alone, school attendance has risen by 22-27 per cent and visits to health centres have increased by 20 per cent on an average in places close to the newly built bridges. So, these are the kind of evaluations that we have. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">Forestry is a major area that you have been contributing to. However, the Swiss government has diverted its attention from forestry to other areas of late. What could be the possible reasons for this?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">We certainly have invested a great deal of time and resources in forestry and it's true that we have been focusing on some other areas too. However, let me correct you by saying that we are still interested in forestry. We are and will continue to invest in forestry. To give you the figures, we have been supporting the previously-funded forest project since 1991 which will end this year. The project has resulted in reversed deforestation for 185,000 hectares of government-managed forests. It has also improved the condition for 135,000 hectares of community-managed forests in the three districts where SDC [Swiss Development Corporation] has been active. Additionally, increased availability of forest products has contributed to sustainable livelihood of 145,000 families and 16,000 person-days of forest based employment have been generated for the poor. Strong multi-stakeholders mechanism and participation from empowered community groups were crucial while achieving these results.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">We are currently planning and preparing a multi-stakeholder forest programme together with DFID and Finland with the Ministry of Forest and Soil Conservation in a supporting and facilitating role. It will build on our respective experiences and extend its impact to a great number of districts spanning over 10 years. The programme will cover about 60-65 districts of the total 75 districts in Nepal. Therefore, I would say that our presence in the forestry sector is probably more than ever.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">You have tried to link Swiss contribution with entrepreneurship, for example, the employment fund. As a drastic departure, you have chosen to work with private companies as trainers. How successful has the idea been?<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">We have been engaged in vocational skill training since the 1950s with cheese and carpet production. We then moved into more formal vocational training with technical schools such as the one in Balaju.&nbsp;We were also associated with the Technical School in Jiri in the 1980s and the Training Institute for Technical Instruction (TITI) in the 1990s. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">This cooperation changed over the time because many more national capacities were becoming available in the formal training sector. At the same time, we realised that we were reaching only a small number of trainees through formal training who could perhaps afford on their own. We started partnering with private entities as training providers to reach the poorer segment of the society as well. It is easier to target disadvantaged and marginalised groups through our new approach. The onus is now on the training provider to find the first employment for the trainees. We feel that vocational training responds more directly to the needs of the labour market through this approach. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;"><br />
	The Swiss government was supporting the promotion of good governance. Do you think it has contributed towards transformation of government practices in Nepal?<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">The money that Switzerland invests into its development cooperation with Nepal comes from the Swiss tax payers. It is therefore absolutely essential that we give adequate attention to good governance and fiduciary management of the projects funded by us. And, we hope that it has a positive influence on the communities and the ministries we work with. Like any other country, Nepal requires good governance across the board from the villages to the central government and from the local associations to the major national parties. Our influence is obviously less at these levels. It is the Nepali people that have to hold their politicians and administration accountable for their respective actions. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">On our part, we have promoted and tried to practise public hearings and public accountability for our projects at the local and district levels. We have seen that there are concerns to begin with while we practise accountability. However, all parties are satisfied after the entire exercise is over. The local and district administrations also realise that such practices actually strengthen their credibility. At the same time, the population too gains a lot of confidence. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">You have been working with the same partner, Pro Public, for over 15 years now. How do you justify this association for such a long period of time?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">Yes, we have had a very long cooperation for sure. But one has to acknowledge that Pro Public has a great deal of experience. They have been in the field for a long time and have been in many places so we have to give them credit for that. The current phase of the project with Pro Public is coming to an end this year and we haven't yet decided who will be our future partner. We believe that we need support from an independent organisation that helps the public hand to build up its credibility through public hearing. It does not necessarily have to be advocacy or accusing the administration on its weak points. It is more about building the capacity and confidence to face the public by being transparent. There is a niche for these kinds of activities in every district which makes our projects and the work of the local administration so much more effective.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">Some of your projects like Jiri Multi-Purpose Development Project have been completely abandoned. What should Nepal do to make such projects and development sustainable?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">Well, the question is not about what should Nepal do. It's rather about what should the development partners both Nepali and Foreign do. First, the projects have to respond to a real need in order to be sustainable. They need to respond to the demand by the beneficiaries and these needs may evolve over a period of time because the beneficiaries and their aspirations evolve. Second, the projects also have to be of appropriate size and be constantly adaptive. It is because the counterparts the national entities can take over some of the responsibilities of the projects in a more convincing way. Therefore, these are the two elements that help projects become sustainable. The projects are the tools to deliver certain services that need to continue. </span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">The issue of inclusion is in the forefront of development debate lately. Is this the right approach given that it would further consolidate caste as ethnic identity just to get the&nbsp; </span></strong><strong><span style="font-size: 12px;">desired benefits?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;"><img align="left" alt="thomas" border="1" height="244" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/img1(2).jpg" style="margin: 10px; padding: 10px;" vspace="5" width="400" /></span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">The benefits of social and economic development frequently do not get distributed equitably in societies that are very diverse and strongly compartmentalised. This leads to frustration and conflict. Invariably, there is an accumulation of wealth and power by those who already have it rather by the ones who don't have it. This has been experienced in many countries and it has been experienced in Nepal too.&nbsp;The other problem is that the potential of the diversity of a nation is not unleashed. Imagine a family, village or a country where all the decisions are taken only by men. For example, I can't imagine not involving my wife in decision making. She may have many skills, knowledge and competencies that I lack. The same is true for a country where a single ethnic or linguistic community is controlling all the decisions. This way, you are invariably reducing the development potential of your country to a fraction of what it could be otherwise.&nbsp;</span></div>
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	<strong><span style="font-size: 12px;">Given the climate change, how do you think issues like bio-diversity can be addressed?<br />
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<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">The problem with climate change is that we don't really know the end effect especially in a country like Nepal where there are so many ecological zones. Some places might become drier and others wetter so there could be a lot of fluctuation. The diversity in nature is the insurance policy against change. That's why nature has been created the way it is, with a lot of diversity where one plant may die and another may survive. The diversity has to be maintained in order to adapt to the changes that we don't know about. And therefore, natural bio-diversity and agricultural bio-diversity have to be promoted very actively keeping the climate change in mind. Farmers in Nepal who live in very diverse environments can help maintain and cultivate agricultural bio-diversity that would help the country resist and be more resilient to climate change and its effects. But the community and the country as a whole has to recognise that service. It's not just the food production, it goes beyond that. This is a little complicated&nbsp; it means that you have to start thinking about environmental services by getting the farmers some kind of support that is more than just the minimum payment. <br />
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	<span style="font-size: 12px;"><br />
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	<strong><span style="font-size: 12px;">The Swiss government is the major donor towards supporting constitution writing process but it doesn't seem to have yielded any results. What do you think is the problem with constitution writing in Nepal?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">The taxpayers of this country are the major donors to Nepal. They are the ones who pay the salaries of the parliamentarians and indirectly, the politicians. Therefore, the investment of the international community cannot be compared with the investment of the people of this country in terms of time and resources. Changing the direction and design of a country takes time. It requires a lot of focus and motivation and the need to make compromises. This is in the hands of the Nepali politicians who have to come together for an agreement and then be able to share their findings with the general population at large to achieve a consensus. The current generation of the politicians owe this to the country. The constitution in my country also took a long time. We can be here as friends, nudging and criticising but in a constructive and positive way. We certainly hope that the constitution writing process in Nepal will now move forward. </span></div>
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	<strong><span style="font-size: 12px;">Many people think that Swiss federalism model is appropriate for Nepal. How do you view this idea?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">I strongly believe that Nepal needs to find its own model. What I can say though is that Swiss federalism is not about autonomy and independence. It is about how our cantons (provinces in your case) can work together building on reciprocal strengths and diversity to work in a united way for a stronger country. That requires a lot of compromises. One can never see one's own problems only. The provinces in my country need each other and I assume that it would be the same in Nepal. The policy makers can have a positive bias towards their own provinces. Previously, anyone who had a vision and was ambitious for Nepal focused on Kathmandu. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
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<div style="text-align: justify;">
	<span style="font-size: 12px;"><span style="line-height: 115%;">In the future, the people would like to be identified by their respective regions and will be looking for strengths and resource development of their own provinces. The sense of pride for belonging to a certain province will come into play which was not there earlier. It helps but you can never lose out of perspective that a province is not viable by itself and requires to be complemented by other provinces. Therefore, everyone needs to understand that Nepal, as a single entity, needs to establish credibility at the international level. <br />
	<br />
	<br />
	<br />
	</span></span></div>',
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			'created' => '2011-08-22',
			'modified' => '2012-09-16',
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			'description' => 'Dr Thomas Gass is the first residential Ambassador of Switzerland to Nepal. He was previously Switzerland's ambassador to the United Nations in New York and spent five years there prior to arriving in Nepal.',
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	(int) 1 => array(
		'Article' => array(
			'id' => '387',
			'article_category_id' => '48',
			'title' => 'Changing Face Of Crisis (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="color: rgb(178, 34, 34);"><i><span style="font-size: 8pt; line-height: 120%;"><img align="left" alt="madan" border="1" height="108" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/img2(3).jpg" style="width: 90px; height: 108px;margin:10px;padding:10px;" vspace="5" width="90" />By Madan Lamsal<br />
	<br />
	<br />
	</span></i></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 10.5pt;">T</span><span style="font-size: 9.5pt;">hese days, if you encounter any crestfallen wo/man with faded pulchritude and desperate to reach somewhere sooner, s/he could easily be a banker. With the collapse of BFIs in a row, even the CEO of healthiest of these institutions is sacred to the hilt. Simply because, before one could explain the robustness of his or her institutions, things are seen going out of hand of these expert managers.</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;">Except those under the government raincoat, almost all BFIs are feeling the pinch of acid-rain, some term it liquidity- and others lucre-dity-driven crisis. And every crisis is a god-sent lottery to some, and so called older and large banks are now enjoying the unprecedented deposit flow when their smaller and younger fellows gasp for life.</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;">The lifestyle, personality and approach of the CEOs of many of these BFIs have completely changed. They have ceased to wear tie. Harrods tweed has been replaced by Bangkok boutique. Razor sharp creases of the dress have disappeared and, instead of driving individual cars, many senior executives of an institution are seen stacked in single vehicle. They are not doing it for their security by feigning move-incognito, but all of them are putting these sincere efforts to support the Nepal Rastra Bank Governor's objectives to bring down the national inflation to a single digit. In cocktails, they hardly speak. Even if they do, they just mew. Their eyes are anxious not to bump with any guy from Baluwatar, by chance. Who knows, a prestigious banker today may be arrested by the police on the criminal charges of elbowing a central banker in a cocktail party?</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
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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;"><img align="right" alt="laughing" border="1" height="248" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/img(5).jpg" style="margin:10px;padding:10px;" vspace="5" width="350" />Early in the morning, these CEOs dread to read the newspapers. They feel the unusual urge to pee while reading the news about the rampage and killings by wild elephants in the districts like Jhapa. They hallucinate that snores and roars of the Jhapali animals is also coming out of the Baluwatar woods, perhaps without knowing the Jhapa influence in the present day Nepali financial sector. Some CEOs are also scared that, regardless of the financial credentials of their institution, they would be chased by one powerful Jhapali to apparently to install another Jhapali in the CEOs position, in addition to a couple of peripheral advisors to add the operational cost of the purportedly crumbling institution. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">But there are more than one solutions to these woes of poor CEOs. First, they must confess that they didnâ€™t know any previous governor or deputy governor of the central bank to vindicate an unflinching loyalty to the present central bank leadership. Second, even if they knew some, they continuously profess that all former Rastra Bank officials including the governor were unprofessional, unqualified and dirty people; and responsible for present mess in the financial system. Also remember to communicate your allegiance to the party that made history by launching the Jhapa andolan. And, donâ€™t commit foolish mistake of visiting new bungalow of the governor worth crores as that may prove something else to his principled credentials as a true proletariat. These tips will surely help you if not your institution.<br />
	<br />
	<br />
	<br />
	</span></div>',
			'published' => true,
			'created' => '2011-08-22',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'These days, if you encounter any crestfallen wo/man with faded pulchritude and desperate to reach somewhere sooner, s/he could easily be a banker. With the collapse of BFIs in a.....',
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	(int) 2 => array(
		'Article' => array(
			'id' => '386',
			'article_category_id' => '47',
			'title' => 'Spirituality In Heart, Business In Mind',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="color:#000;"><span style="font-size: 12px;"><img align="left" alt="suresh" border="3" height="334" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/suresh_kumar_basnet.jpg" style="width: 269px; height: 334px;margin:10px;padding:10px;" vspace="2" width="269" /></span></span></div>
<div style="text-align: justify;">
	<span style="color:#000;"><span style="font-size: 12px;">Suresh Kumar Basnet began his business with the belief that if one has the capacity and acumen for marketing, one can sell just anything. From a budding businessman in 1979 to NCC president today, he has seen success and knows it does not come easy.<br />
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	</span></span></div>
<div align="center" style="text-align: center; text-indent: 0in;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
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<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><b><span style="line-height: 120%;">Suresh Kumar Basnet</span></b></span></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><span style="line-height: 120%;">President</span></span></span></div>
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	<span style="color:#000;"><span style="font-size: 12px;"><span style="line-height: 115%;">Nepal Chamber of Commerce (NCC)</span></span></span></div>
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<div style="text-indent: 0in;">
	<span style="color:#000;"><span style="font-size: 12px;"><strong><i>By </i>Gaurav Aryal<br />
	<br />
	</strong></span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">Suresh Kumar Basnet stepped into the world of business with Rs 7,000 back in 1979. For Basnet, that was a big money managed all by himself to start his business. At that time, he saw demand for fancy clothes, watches, photography equipment, typewriters in the cities of the plain like Bhairahawa, Biratnagar and other places. I supplied those goods from the wholesalers in Kathmandu to these cities,he shares the story behind the inception of his business and career. Basnet gained experience and knowledge about his business with time from the people in his fraternity. He was not hesitant to shift to those goods and businesses that offered lucrative returns.</span></span></div>
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	<span style="color:#000;"><span style="font-size: 12px;">Today, Basnet is the President of Nepal Chamber of Commerce (NCC), the guardian association of Nepali industries as well as small, medium and large companies. Basnet has been in NCC for 18 years now. Beginning with the working committee member, he has climbed the ladder to the apex position. Apart from the NCC President , he is a business person heading a group of companies with interests in export and production of pashmina, textile, silver jewellery, handicraft, copper goods, gold-plated statues, carpets and mineral water among others.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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	<span style="color:#000;"><span style="font-size: 12px;">At present, he directly owns a range of business enterprises including Basnyat Company Limited, Sujit Concern and Brothers, Om Shanti Pashmina Udyog and Jal Pure Drinking Water and Beverage Industry. He is also involved with Kathmandu Upatyaka Khanepani Limited (KUKL) and Sunrise Bank in different capacities.</span></span></div>
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<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><strong>Early Life<br />
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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="color:#000;"><span style="font-size: 12px;">Basnet was born in Kathmandu in 1955. His family was a working class family. It was around 1960 that his family bought a piece of land in Chitwan. Young Basnet shifted to Chitwan in 1962 where he completed his school education. We had an extended family and since we were financially weak we decided to shift to Chitwan, Basnet clarifies. He adds, There I learnt to be a hard-working man. I took to farming, did household chores and saw myself being shifted from one place to another with the passage of time. He emotionally says that in Chitwan he could realise what the hardship is and what the joys are the two realities of life.<br />
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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="color:#000;"><span style="font-size: 12px;">Basnet proudly claims that in his student days, he was quite a good student. Apart from his studies, he was fond of playing football, volleyball, badminton and chess. He was counted as one of the best players of the district those days.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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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="color:#000;"><span style="font-size: 12px;">After graduating the School Leaving Certificate, he came back to Kathmandu with a dream of becoming a doctor. To pursue his dream, he joined Amrit Science Campus. However he was forced to take up physics as he could not study Biology in his high school in the absence of a biology teacher. Basnet largely relied on lectures as books were so rare and expensive those days. He recalls how he had to wait for months for a book in the college library. During his exam time, his fate took a different turn. He fainted while appearing for his exams. I had to leave my studies for around six months because of my illness. When I returned to college, my principal said that I have missed the course and asked me to start afresh next year,Basnet says. Meanwhile, his relatives advised him to change the subject and&nbsp;study commerce rather than waiting for the next session.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
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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="color:#000;"><span style="font-size: 12px;"><img align="right" alt="" border="3" height="565" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/suresh_kumar_basnet1.jpg" style="margin:10px;padding:10px;" vspace="2" width="350" />Basnet quietly obeyed them and joined Public Youth Campus where he completed his ICom. He later completed his graduation from Shankardev Campus in business studies. While pursuing his business studies, Basnet somewhere felt that he should polish his entrepreneur skills and start doing something on his own.I established a firm for import-export, he shares his early days. Basnet picked up business fundamentals from his brother's friend who ran a company in Putalisadak. Basnet was around 26 when he started his business. A lot of hard work in the years that followed earned me vital business contacts that helped me in my export-import business, he reveals. At that time Basnet used to deal with the third-country goods but he claims he never dealt with cheap goods from Khasa, China. He opened an LC account to make his export-import business a formal one.&nbsp;Basnet usually dealt in items with seasonal demands like dry fruits and readymade garments during major festivals like Dashain and Tihar. Apart from that he also tried dealing with photography goods, motor parts, ball bearings and later on even in vehicles. He admits that often he had to bear losses for not having enough experience and expertise. He adds, I thought of getting into industries. I was into garments, carpet, and pashmina. In the pashmina business, I incurred losses as well as made profits over the years His markets for these products were Japan, Korea and USA. He shares, I gained experience by doing the things. I learnt the nitty-gritty of business and kept on reworking on my strategies. I always received support from my family. My better-half is just like my business partner.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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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="color:#000;"><span style="font-size: 12px;">Basnet has passed three decades in the business world. He thinks profit and loss are defined by the nature of business, time and environment, politics, dedication to work and a touch of luck. Sometimes despite hard work, enough investment and favourable time, some circumstances and luck may lead to failure,Basnet opines. Apart from profit and loss, business has taught me honesty, duty to pay taxes to the state, and to have patience and take risk, he says.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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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="color:#000;"><span style="font-size: 12px;">Today Basnet has stopped importing and focuses only on export. I am looking for ways to export our products to other countries. I am targeting the US market though recession has bruised&nbsp;its demands. However, I have not stopped exporting pashmina, silver jewellery, handicraft, copper goods, small statues and carpets, he expresses determination. Basnet is looking forward to investing in hydroelectricity too. I am also searching for feasible products that can be produced with local raw materials and which has the market prospect within Nepal like dairy products,he adds.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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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="color:#000;"><span style="font-size: 12px;">When he began his business, Basnet managed the investment from his own sources but today he feels the presence of commercial banks has eased financing for any project. About managing capital, he says he revolves the fund between industries and companies as and when required.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
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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="color:#000;"><span style="font-size: 12px;">About managing his companies, Basnet says that management works are done by dedicated staff and managers of the respective departments are given full authority. He says he does not interfere in their work&nbsp;except for some monitoring and policy guidelines. However, Basnet thinks the investor also has to play the role of a manager.</span></span></div>
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	<span style="color:#000;"><span style="font-size: 12px;"><br />
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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="color:#000;"><span style="font-size: 12px;">Basnet believes in having friendly relationship with employees. After working for a long time, some sense of brotherhood develops among the staff,he opines. He says employees salary is based on the ratio of profit made by the company but he ensures that people working in his companies are well taken care of in all respects including financial distress.We respect honesty, dedication and hard work of employees so that they can develop a sense of ownership towards their workplace.</span></span></div>
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	<span style="color:#000;"><span style="font-size: 12px;"><strong>Family Life<br />
	<br />
	</strong></span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">Basnet feels that he struggled throughout his life alone. His sons have always stayed away from home either for their studies or for their job. But we always have a cordial relationship with each other. I have given time to my family as much as possible. Previously, we used to spend quality time together at least once a month and every winter we used to visit some places within Nepal, he revealed the way he takes out time for his family. He thinks giving time to family means giving time to self also.</span></span></div>
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	<span style="color:#000;"><span style="font-size: 12px;"><br />
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	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">He is satisfied with what he has achieved so far and has nothing to regret. At the end of the day, experience that he gathered maters to him much than the the status of profit and loss accounts. As any other human being, I also thought of making money but for that I never compromised with the business ethics, he proudly says. I never lied or cheated anybody and I always paid back the loans borrowed from the banks. That gives me immense satisfaction when I look back at my career.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">The malpractice in the name of unions that is going around is something that worries him. Basnet believes that professional working environment should not be unionised or politicised.<br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><strong>Spirituality<br />
	<br />
	</strong></span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">For the last 17 years, he has immersed himself into spiritual contemplation. He says, There is only one truth that is our soul and God. What we see with our eyes is nothing but illusion. Every morning, he meditates and ponders over spirituality for two hours. Basnet claims that NCC is also a kind of social organisation that has spent 58 years for the welfare of small, big and medium industries without any greed. He is also involved with a religious institution. I participate in some spiritual activities as religion is an integral part of our culture. My aim is to interact with the soul. I think our physical body is just like a mirage in the desert or the rope seen as a snake in dim light, he becomes saintly. </span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">In his free time, Basnet likes to visit Chitwan and indulges in prayer sessions. I know that exercise is needed to keep myself healthy but I have not been successful to manage time for it. But I do light exercises related to breathing and limbs every day for around half an hour, he revealed. I have some health problems but due to my spiritual inclination, they have not caused many problems to me, he claimed. Apart from that, he likes reading spiritual books, economic news and articles, occasionally watch family and social movies and TV channels like Discovery, National Geographic that air new and interesting things. He admits that he spends more time in spiritual contemplation. He feels his body has grown too old to indulge in any sports now.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="text-align: justify;">
	<span style="color:#000;"><span style="font-size: 12px;"><span style="line-height: 115%;">Basnet is thinking of taking retirement at the age of around 64 but he is not fanciful about his life after retirement. He does not dream of visiting new places, go swimming or golfing. He plans to immerse in his quest for spirituality. My philosophy is that being a human being, we are meant to find out who we are. So, I will also try to internalise the self, he declares.</span></span></span></div>
<div>
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	<br />
	</span></span></div>
<div>
	<span style="color:#000;"><span style="font-size: 12px;"><strong>Personal Side<br />
	</strong></span></span></div>
<ul>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Loves wearing comfortable clothes that matches the personality</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Believes in brand of intellect than the brand of clothes</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Meditates for at least 45 minutes to two hours every morning </span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Loves listening to hymns</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Likes reading spiritual books</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Occasionally watches movies</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Adores interesting programs aired on Discovery, National Geographic and Animal Planet</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;"><span style="line-height: 115%;">&nbsp;&nbsp; Spiritual by heart<br />
		<br />
		</span></span></span></li>
</ul>',
			'published' => true,
			'created' => '2011-08-10',
			'modified' => '2012-09-17',
			'keywords' => '',
			'description' => 'Suresh Kumar Basnet began his business with the belief that if one has the capacity and acumen for marketing, one can sell just anything. From a budding businessman in 1979 to NCC president today......',
			'sortorder' => '302',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
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	),
	(int) 3 => array(
		'Article' => array(
			'id' => '385',
			'article_category_id' => '52',
			'title' => 'A Volte-face On Hydropower Development July 2011',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">I</span><span style="font-size: 9.5pt;">n the mid-June, Employees Provident Fund (EPF) announced its plan to invest Rs 15.5 billion for four medium-scale hydro-power projects. These projects included 100 megawatt Rasuwagadhi, 120 MW mid-Bhotekoshi, 14.6 MW upper-Syangden and 42.5 Syangden hydropower. All these projects are constructed by Chilime Hydropower Company at the cost of Rs 32.11 billion. The EPF commitment is almost half of the estimated cost. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<span style="font-size: 9.5pt;">In another development, government began its exercise to establish Hydropower Development and Investment Company, so far the largest development bank in Nepal for the purpose. This new company aims to generate at least Rs 20 billion as equity, mainly from the government and the public sector enterprises (PSEs), again, from the like of EPF.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<span style="font-size: 9.5pt;">There is no denying the fact that the country is in desperate need of resources to develop the hydropower, the sooner the better. And, also, Nepal must develop adequate hydropower projects not only to meet its ever growing energy needs but also to harness the water power that is available in abundance within the country.<br />
	<br />
	<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: 9.5pt;"><img alt="fromtheeditor" border="1" height="386" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/1.jpg" style="margin:10px;padding:10px;" vspace="10" width="350" /></span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<br />
	<span style="font-size: 9.5pt;">But, these needs do not necessarily justify the recent government adventurism to manage resources for its development. Both, the EPF investment and setting-up of a new bank has two things in common. One, the government</span><span style="font-size: 9.5pt;">is only looking into the option of government-guided development of the sector. It is also because the EPF investment cannot be termed anything else as it is the fully government owned pension fund with almost monopoly in the market. And the proposed new entity has also proposed to incorporate rich PSEs alone. Second, in both the processes, possible involvement, participation and investment of the private sector have been completely ignored. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<span style="font-size: 9.5pt;">This is exactly the unbecoming for Nepal's hydropower development. On the one hand, there is already a debate on what degree of flexibility the EPF and the like PSEs should enjoy in diversifying its investment portfolio. And on the other, the question is if such collusion of government agencies (as Chilime is also government undertaking) alone could actually contribute to the hydropower development and solve the country's energy crisis.<br />
	<br />
	More serious issues surround the proposed new investment bank. Since it has precluded the private sector since its conceptualisation, its proposed Rs 20 billion equity funding is sure to prove too little to meet the financial resource demand for hydropower development. This amount is only enough to develop 100 to 150 MW of power at the most. Besides, this entity cannot be envisaged to take-up the retail banking to mobilise additional resources. At best, the resource gathered by this bank could be mobilised by other PSEs like Nepal Electricity Authority, nothing more.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div>
	<span style="font-size: 9.5pt; line-height: 115%;">The only right course in this regard would have been the private sector leadership in investment, development and management of<i> all</i> hydropower projects. The government surely could have facilitated with policy and resources instruments it had. But, now things seem to be moving in completely opposite direction. And, the money dammed in by the government authorities might not be able to flow down so as to generate power, at least not in substantial scale and sustainable way. <br />
	<br />
	<br />
	</span></div>',
			'published' => true,
			'created' => '2011-08-10',
			'modified' => '2012-08-31',
			'keywords' => '',
			'description' => 'In the mid-June, Employees Provident Fund (EPF) announced its plan to invest Rs 15.5 billion for four medium-scale hydro-power projects. These projects included 100 megawatt.......',
			'sortorder' => '301',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
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	),
	(int) 4 => array(
		'Article' => array(
			'id' => '384',
			'article_category_id' => '34',
			'title' => 'CPVC Pipes From Panchakanya Plast(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">P</span><span style="font-size: 9.5pt;">anchakanya Plast Pvt Ltd, a Panchakanya Group company is introducing Chlorinated Poly Vinyl Chloride (CPVC) Pipes in the market soon. Harka Bahadur Thapamagar, the Sales Manager of the company said that the company has already begun the production of these pipes. â€œThe manufacturing of mould needed for making the pipes is in the process and we will launch our product within a month,â€ he said. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </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;">According to Thapamagar, CPVC pipes are better alternatives to GI pipes for drinking water supply as the former are rust free and lightwieight to transport to remote locations. Panchakanya Plast has its factory near Bhairahawa.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Thapamagar claimed that Panchakanya is the first company to produce CPVC pipes in Nepal. These pipes are appropriate to use with both hot and cold water and can last up to 50 years. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
<div style="text-align: justify;">
	Â </div>
<div style="text-align: center; text-indent: 0in;">
	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">LIC (Nepal) Implements RDBMS</span></strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="">L</span><span style="font-size: 9.5pt;">ife insurance Corporation (Nepal) Ltd has gone a step further in its IT initiatives by introducing web-based policy administration system, states a press release of the company. In 2008, LIC (Nepal) became the first Life Insurance Company to network all its branches across Nepal, enabling effective inter-branch communication system. By using RDBMS (Relational Data Base Management Systems) with the web-based front end architecture now, the company has achieved centralisation of its database, adds the press release promising that the new development will make servicing more effective, ensure real time transaction updation and also allow remote users to have access to latest data. This will also enable the company in the near future to provide online payment facility and 24x7 services to its customers, it adds.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </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 entire package has been developed in-house by the LIC of India using the latest technologies in the market and is very user friendly, according to the company. The package will also have the feature of maintaining customer ID to provide services to all the policies of one customer in a single window.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">The module came into operation from 5th May 2011. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
<div style="text-align: justify;">
	Â </div>
<div style="text-align: center; text-indent: 0in;">
	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">New Industries in Patan Industrial Estate</span></strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">hree new industrial units are being established in Patan Industrial Estate (PIE). The new units are added are Shakti Food Pvt Ltd, Siddhilaxmi Plastic Industry and Nepal Commercial Industry. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </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;">Prem Nepal, the Manager of Patan Industrial Estate said that two other industrial units are planning to expand capacity while another one plans to revive its operation.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </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;">Siddhilaxmi is investing Rs 10 million while Rs 100 million is being invested in Shakti Food.&nbsp;Nepal Commercialâ€™s investment has not been finalised yet, according to Pushkar Paudel, the Manager of the company which is currently the authorised distributor of Indian furniture brand â€˜Godrejâ€™ in Nepal. The PIE plant of Nepal Commercial will be assembling furniture. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </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;">Shakti Food plans to introduce â€˜Martinâ€™ brand of ice-cream in the market and will have a daily production capacity of 20,000 litres. Besides ice-creams, it will also produce other dairy products.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Shakti Shrestha, the operator of Siddhilaxmi Plastic industry informed it will start producing plastic bottles within the next couple of months. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
<div style="text-align: justify;">
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<div style="text-align: justify;">
	Â </div>
<div style="text-align: center; text-indent: 0in;">
	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Infrastructure Bonds in USD </span></strong></span></div>
<div style="text-align: justify; text-indent: 0in;">
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<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 12pt;">N</span><span style="font-size: 9.5pt;">epal Rastra Bank (NRB) is mooting a policy to allow purchase of big infrastructure project bonds by paying US dollars. The NRB has begun internal discussions for formulating such policy so as to attract foreign investment in big projects. A source at the NRB revealed that the policy is being prepared to attract foreign investments in hydroelectricity and other big projects.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </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;">People who buy such bonds by paying US dollars will get the interest in US dollars. Similarly, the principal amount too will be returned upon maturity in US dollars. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </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 this policy, also the foreigners can buy bonds issued by Nepal. But some legal formalities have to completed before such bonds can be issued. For example, the existing law has to be amended, said a source in the NRB. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </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;">These bonds can be bought also by the NRNs, companies and persons having regular income in US dollars. However, the NRB will be barred, according to the surce, from buying such bonds though it is allowed to buy foreign bonds with the foreign currency reserve it holds. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">The big infrastructure projects that require huge capital can issue such bonds through merchant banks, according to the proposal.&nbsp;A number of the promoters of large projects have asked the NRB for a provision to allow foreign investors buy their bonds due to the scarcity of capital within the country to invest in such big projects. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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<div style="text-align: center; text-indent: 0in;">
	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Minimum Wage Controversy </span></strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 13pt;">T</span><span style="font-size: 9.5pt;">he Ministry of Labour and Transport Management has unilaterally fixed the minimum wage amidst opposition from Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and three major trade unions.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </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;">Krishna Hari Pushkar, the spokesperson at the ministry said the minimum wage was fixed considering two previous agreements made on March 24 and April 15. He said, â€œMinimum wage has been fixed taking into consideration the concerns of both employers and employees.â€</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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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;">The minimum wage has been increased from Rs 4,600 to Rs 6,200. Similarly, the daily wage has been increased from Rs 190 to Rs 231. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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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;">Pashupati Murarka, the Vice President of FNCCI said the employers wonâ€™t agree to any agreement published in Nepal Gazette that goes against the one made on March 24. He alleged that the notice was published in the gazette without consulting the employers. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </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;">An official at the FNCCI alleged that the minimum wage has been fixed as per the demand of Madhesi trade unions since the Labour Minister represents the Madhesi Jana Adhikar Forum.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Bishnu Rimal, the President of General Federation of Nepalese Trade Unions (GEFONT) said that new agreements should not be implemented before dismissing the old ones. He said that they are currently following the agreement made on March 24. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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<div style="text-align: center; text-indent: 0in;">
	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Bluebird Mart Inaugurated</span></strong></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 15pt;">B</span>luebird Shopping Complex has come to operation in a changed form. Now called&nbsp;Bluebird Mart, it has added a new departmental store and two world-renowned chain restaurants. The Mart was inaugurated on May 17 by Miss Nepal Sadikshya Shrestha. KFC and Pizza Hut restaurants are scheduled to open soon, according to Binod Tuladhar, the Managing Director of Bluebird Mall.</div>
<div style="text-indent: 0in; text-align: justify;">
	Â </div>
<div style="text-align: justify;">
	He also informed that the Yellow Chilly, an Indian chain restaurant will also be added to the property later. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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<div style="text-align: center; text-indent: 0in;">
	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Five-star Hotels Register 80 per cent Occupancy </span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;"><span style="font-size: 14px;">h</span>e occupancy rate of the five-star hotels in the first four months of Nepal Tourism Year (NTY) 2011 has touched 80 per cent. Raju Bikram Shah, the Senior General Manager of Hotel Shangri-La said, â€œHotel occupancy in the first four months of this year has increased by 10 per cent when compared with the same period last year.â€ </span></div>
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	<span style="font-size: 9.5pt;">With the mountaineering season picking up momentum, some hotels have registered more than 80 per cent occupancy for April. However, Shah said the hotels should have 100 per cent occupancy due to NTY programmes. Encouraged by the positive response for the first four months, hotel entrepreneurs are hopeful that occupancy will remain high in the coming months as well.</span></div>
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	<span style="font-size: 9.5pt;">According to Bharat Joshi, the Marketing Director of Hotel Yak and Yeti, the occupancy rate increased with the trekking and mountaineering season. Hotel entrepreneurs further expect growth in tourist arrivals with the advent of pilgrimage season for Kailash-Mansarobar.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">In April, Hotel Shangrila had 87 percent occupancy, while Hotel Yak and Yeti had 79 percent, Hotel Soaltee 78 percent and Hotel Fulbari around 80 per cent. Five-star hotels claim the tourist flow increased because of their promotional efforts in the international market. They added that they spend Rs 400 million annually for overseas tourism promotion.&nbsp;</span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">NTBâ€™s â€˜Border City Sales Missionâ€™ </span></strong></span></div>
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	<span style="font-size: 14px;">N</span>epal Tourism Board (NTB) has begun a tourism promotion campaign â€˜Border City Sales Missionâ€™ in the Indina cities close to the Nepal border. According to NTB, sales mission has been started in Indian cities of Kanpur, Varanasi and Lucknow. Lila Bahadur Bania, a Manager in the NTB said that the campaign was started as the Indian tourists were not coming to Nepal in large numbers. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Petroleum Import Exceeds Total Export </span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he revenue generated from Nepalâ€™s export cannot even buy petroleum products required for the country, according to the recent trade data. Nepal exported goods worth Rs 47.98 billion by mid-April of the current fiscal year while the country spent Rs 50.26 billion for importing petroleum products during the same period, show the data released by the countryâ€™s trade monitoring body Trade and Export Promotion Centre (TEPC). </span></div>
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	<span style="font-size: 9.5pt;">By mid-April of last fiscal year, petroleum imports were worth Rs 35.22 billion.</span></div>
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	<span style="font-size: 9.5pt;">Nepal had to spend more for petroleum products due to two reasons. One was the unrest in the Middle-East that led to an increase in price of the petroleum in the world market. Second was the increase in the demand within the country due to lengthened power outage due to failure to increase power generation from the countryâ€™s hydropower plants. </span></div>
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	<span style="font-size: 9.5pt;">In the same period of the current fiscal year, Nepal has imported goods worth Rs 287 billion. So, Nepalâ€™s trade deficit has reached Rs 239 billion in the first nine months of the current fiscal year, according to TEPC.</span></div>
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Even though the imports of petroleum products and iron and steel have increased, there is a decrease in the import of machineries, electronics, vehicle spare parts and gold. In the first nine months of the last fiscal year, gold worth Rs 24.61 billion was imported but it has decreased to Rs 4.62 billion this year, a decline of 87.7 per cent. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>',
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			'description' => 'Panchakanya Plast Pvt Ltd, a Panchakanya Group company is introducing Chlorinated Poly Vinyl Chloride (CPVC) Pipes in the market soon. Harka Bahadur Thapamagar, the Sales Manager of the company said......',
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	(int) 5 => array(
		'Article' => array(
			'id' => '383',
			'article_category_id' => '34',
			'title' => 'EU Ban Affects Ayurved Export(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">epalâ€™s export of Ayurvedic medicines to Europe has declined following a ban on their import by European Union (EU) effective from May 1 citing public health risk. </span></div>
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	<span style="font-size: 9.5pt;">Dr Rishiram Koirala, the President of Ayurvedic Doctorsâ€™ Association-Nepal (ADAN) said the ban has proved really bad as it came exactly when the export of Nepali Ayurvedic medicines was on the rise. He complained that the EU ban also affected export to other countries. Koirala claimed that the ban was imposed to promote internal production of EU,not due to any threat to health.<br />
	<br />
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	<span style="font-size: 9.5pt; line-height: 115%;">Toya Narayan Gyawali, the General Secretary (Check â€¦. As there can be no such post as Gen Sec In a Ministry) at the Ministry of Commerce and Supplies said the government has not received any formal notice on the restriction. He said, â€œIf the restriction has indeed been imposed, we will try to solve the problem as soon as we receive a formal notification.â€ Prior to the ban, there was growing demand of ayurvedic medicines in eight countries including Austria and Sweden. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Rinchen Teaching Hospital in Dang</span></strong></span></div>
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	<span style="font-size: 14px;">C</span><span style="font-size: 9.5pt;">onstruction is going on for Rinchen Teaching Hospital at Sisahania of Dang with an investment of Rs 8 billion. According to the executive committee of the hospital, the initial phase of work has been completed. Gopal Prasad Bhusal, the Chairman of the committee claimed the hospital would be one-of-its-kind among the non-profit hospitals in Nepal.</span></div>
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	<span style="font-size: 9.5pt;">For the first phase, Rs 60 million was allocated while Bhusal said Rs 150 million may be required for designing and other works in the second phase. â€œIn the third phase, the entire physical construction would be completed at an investment of Rs 6 billion,â€ said Bhusal. Another Rs 2 billion will be invested to make the hospital operational. Out of the total investment, Rs 200 million will be invested for information technology.</span></div>
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	<span style="font-size: 9.5pt;">Between 60 to 80 percent of the total cost will be financed by Ranag Tulku Rinchen Rinpoche, the Protector of the hospital, informed executive committee member Tilak Bhandari. The rest of the cost is to be financed from the government, local bodies and local donors, he added. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">According to Bhusal, the 700 bed-hospital plans to operate also air ambulance service in the future. The hospital will educate 100 MBBS, 50 MD, 200 BSC and 200 Nursing students every year. It will also conduct academic classes on meditation, yoga and spiritual knowledge. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">NRBâ€™s Forced Merger By-laws</span></strong></span></div>
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	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">epal Rastra Bank (NRB) has issued a merger by-law that allows NRB to order a bank and financial institutions (BFIs) to merge if it is found weak in its vital indicators. The by-law also offers a number of incentives to encourage mergers, said Bhaskar Mani Gyawali, the NRB Spokesperson.</span></div>
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	<span style="font-size: 9.5pt;">The BFIs opting for mergers will be waived off several conditionalitis related to upgradation and operational area expansion. The by-laws also relax the provision on mandatory â€˜complete three yearâ€™ rule in adding number of branches in the districts allowed to operate. </span></div>
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	<span style="font-size: 9.5pt;">The new regulation incorporates the provision of forceful merger, allowing the central bank to instruct two or more BFIs to merge if it deems appropriate. Similarly, the new rule has pledged relaxation on capital structure, shareholding limit for promoters, credit-deposit ratio, borrowing limit for promoters and deprived sector lending, among others.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The central bank can instruct or suggest BFIs to merge if representatives of the same group, firm or company are found holding positions in the board of directors of more than one BFIs. It can also do so if the BFIsâ€™ non-performing loans exceed five per cent of the total loan portfolio for three consecutive years and if the BFIsâ€™ independent operations are causing negative impact on the banking system. The NRB can also ask those&nbsp;BFIs to merge to which the central bank has taken three corrective actions in a row or even in a case where it thinks the merger would strengthen the overall banking system. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Ncell Reduces 3G Tariff</span></strong></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">P</span></span><span style="letter-spacing: 0.15pt;">rivate sector telecom operator Ncell has come up with a new scheme with reduced tariff for high-speed 3G Internet. Under the scheme, the company offers 500 Mb data for Rs 399 (or 80 paisa per Mb) down from earlier Rs 499. Similarly, 1000 Mb is now priced at Rs 699 (or 70 paisa per Mb). The Internet users not subscribing to the new packages will have to pay Rs 2 per Mb. </span><span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Banksâ€™ Hydropower Investment Reach Rs 16 billion </span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he investment of Nepali Banks and Financial Institutions (BFIs) in hydro electricity projects has reached almost Rs 16 billion during the period of the last decade. Chilime Hydropower under the Public-Private Partnership model is the first project to have investment from Nepali banks. Himalayan Bank led the consortium of bankers to invest in this project. However, Indrawati is the first hydropower project promoted entirely by the private sector to receive bank investment.</span></div>
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	<span style="font-size: 9.5pt;">Among the other projects with bank finance are Piluwa, Sunkoshi and Sanima Mai. While the former two are small projects, Sanima Mai is relatively big with 15.6 MW and it has investment from a consortium of 11 BFIs. Until now, the BFIs have invested in this sector only through consortium.</span></div>
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	<span style="font-size: 9.5pt;">So far, a total of 21 banks and finance companies have invested in hydroelectricity projects. Clean Energy Development Bank and Jyoti Development Bank say they are specialised in investing in the energy sector and thus increase investment in this sector in the future.&nbsp;</span></div>
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	<span style="font-size: 9.5pt;">However, the investment of banks in hydroelectricity is a mere four per cent of the total deposits of the commercial banks. Recently, Nepal Rastra Bank changed the rule and allowed BFIs to invest up to 30 per cent of their loan outstanding in hydropower projects. Because the investment in this sector from the banks is very low compared to what they are allowed to, the private sector energy entrepreneurs have started arguing for fixing a minimum amount that the BFIs must invest in this sector. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Bankers say they are reluctant to invest in energy as it requires long gestation period and the returns are comparatively higher in other sectors. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Registration of Hydropower Companies Made Easy</span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he Indistrial Promotion Board under the Ministry of Industry has changed the company registration rule for potential hydropower developer. According to the change, the the company registration for hydropower development is divided into two phases, says a souyrce at the Ministry of Industry. </span></div>
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	<span style="font-size: 9.5pt;">With this there is no capital requirement specified for the company that wants to just conduct the feasibility study on the proposed project. But once the company completes the feasibility study and wants to develop the project, it must have its authorised capital at least Rs. 100 million per megawatt of the generation capacity of the proposed project. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The earlier provision required the company to have at least Rs. 100 million as authorised capital even while asking for the permission to conduct feasibility study. This had restrained many developers as they have to pay a high amount as the company registration fee. The Registrar of Companies charges higher registration fee for higher capital. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Cash Rich Govt Institutions asked to Buy Shares in Listed Companies</span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he high-level financial sector reforms coordination committee has decided to issue directives to state-owned institutions to buy shares of companies listed in the stock echange. Dr Surbir Paudyal, a Member of the committee and Chairperson of the Securities Board of Nepal (SEBON) said, â€œA decision has been made to allow Employees Provident Fund and Citizens Investment Trust to invest in the shares of companies listed in the stock exchange.â€</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;">It has also been decided to review the policy on loan from the banks against the security of share certificates and to explore ways to reduce cost of investment in shares. The major costs of investment in shares includeinterest on loan against the security of share certificates, share brokersâ€™ commission, capital gains tax and charges levied by Nepal Stock Exchange.</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;">Under the existing policy, the banks are allowed to lend against the security of share cerrificates up to the amount of 60 per cent of the market value of the share and they have to make a margin call when the market price of the share so received as security falls more than 10 per cent.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The meeting also decided to immediately begin induction of new brokers, start operation of mutual fund and establish credit rating agency. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>',
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			'description' => 'Nepalâ€™s export of Ayurvedic medicines to Europe has declined following a ban on their import by European Union (EU) effective from May 1 citing public health risk.',
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	(int) 6 => array(
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			'id' => '382',
			'article_category_id' => '34',
			'title' => 'Korean Company Sells Stake In Himalayas Spring Water(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;">T</span>The Korean Company that owns Himalayas Spring Water situated in Rasuwa has decided to sell half of its shares for Rs 200 million to Muktishree Pvt Ltd, a Nepali company.â€œThe Korean Company has now decided to have a separate Nepali company as its strategic partner,â€ informed Ganga Dhital, the General Manager of the company.</div>
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	Though the decision has been made already, the formal transfer of shares is yet to materialise. The Department of Industry has also given its approval for the transfer of ownership. After the approval from the Office of the Company Registrar and Nepal Rastra Bank, the Korean company will get Rs 200 million from the buyers. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">New Model for Monetary Survey </span></strong></span></div>
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	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">epal Rastra Bank (NRB) is planning to carry out a monetary survey with a new and updated framework which is under preparation at present. An official at the NRB said the old framework is limited to a few commercial banks in its coverage as it was developed when the number of banks and financial institutions in the country was very small and the level of monetization in the economy was very low. With the growth in number of BFIs and much higher level of monetization of the economy, the old framework cannot correctly represent actual situation.</span></div>
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	<span style="font-size: 9.5pt;">In the absence of clear demarcation of their functions in the law and rules, the commercial banks, development banks and finance companies carry out almost similar activities making it necessary to include them all in the scope of monetary survey to get the true picture of money supply in the economy. However, the existing system of monetary survey does not include the activities of development banks and finance companies.&nbsp;</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Deependra Bahadur Kshetry, Former Governor of NRB suggested including cooperatives as well in the survey as they too are doing similar activities as those of the banks. He also suggested that the monetary survey should include also the quantity of Indian currency in circulation in Nepal. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">49th IHRA Conference in Nepal </span></strong></span></div>
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	<span style="font-size: 14px;">I</span><span style="font-size: 9.5pt;">nternational Hotel and Restaurant Association (IHRA) has selected Nepal as the venue for its 49th Congress scheduled to be held from December 1 to 3. Dr Ghassan AÃ¯di, the President of IHRA officially informed Prime Minister Jhala Nath Khanal about the schedule recently.</span></div>
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	<span style="font-size: 9.5pt;">The IH&amp;RA has its head office in Geneva and has 1.1 million members around the globe representing 300,000 hotels and 800,000 restaurants, informed AÃ¯di.</span></div>
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	<span style="font-size: 9.5pt;">IHRA had held its Congress in Nepal once before in 1968.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Nepal bagged the opportunity to organise the coming event winning over the bids of Argentina and Switzerland. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<strong><span style="font-size: 16px;"><span style="color: rgb(51, 51, 153);">Life Insurance Bonus to Go Down</span></span></strong></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he life-insurance policy holders should now be prepared for reduced bonus on their savings as the regulator of the sector, the Insurance Board (IB), has instructed the insurance companies to change their method o fcalculatin the returns from their investment for the bonus purpose. </span></div>
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	<span style="font-size: 9.5pt;">&nbsp;According to a recently issued directive from the Board, the actuaries of the insurance companies will now take maximum of 6 percent as the return from their investment. However, if the actual return in any of the last three yearâ€™s period covered by the acturial valuation is less than 6 percent, they are required to take that lower figure for the acturial valuation. </span></div>
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	<span style="font-size: 9.5pt;">The insurance companies transfer such amount from their profit and loss account to the fund from where they can distribute bonus to the policyholders and dividend to the shareholders. Any surplus after such fund is provided for will be transferred to insurance fund which is to be treated as reserve from which neither bonus nor dividend canbe distributed. </span></div>
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	<span style="font-size: 9.5pt;">This means the bonus rate on the savings of the life insurance policy holders will be less than 6 percent. At present some of the insurance companies are paying bonus at as high a rate as over 7 percent. </span></div>
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	<span style="font-size: 9.5pt;">Shekhar Kumar Aryal, the Spokesperson of the Board said, â€œThis provision has been made to ensure the longevity of the insurance company.â€</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Insurance company sources complain that this new rule will attract the people away from life insurance to depositing their savings in banks. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Community-led Micro Hydros</span></strong></span></div>
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	<span style="font-size: 14px;">T</span>he Society of Rural Empowerment based in Damauli has supported to install 112 micro hydro projects in eight districts that generated a total of one megawatt of electricity. Rs 53.2 million was invested in these projects. Sarita Gurung, President of the Society said the governmentâ€™s Alternative Energy Promotion Centre and Danish International Development Agencyâ€™s (DANIDA) programme on alternative energy provided financial support to the projects.</div>
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	As part of this programme, 47 projects were constructed in Dhading, 21 each in Gorkha and Makwanpur and 12 in Lamjung districts. Similarly, four each in Nawalparasi and Manang, three in Tanahu and one project in Rasuwa were constructed. According to the Society, 10,800&nbsp;households benefitted from the programme. Projects were developed in areas not linked with national transmission line and having little chance of linkage anytime soon. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Exporters Deprived Promised Incentive</span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he exporters are still denied the incentives they were promised by the government while presenting the budget for the current fiscal year. The reason behind this is the change in the government due to which there has been delay in getting approval from the council of ministers on the procedural guidelines prepared for this purpose. </span></div>
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	<span style="font-size: 9.5pt;">According to Toya Narayan Gyawali, a Joint Secretary in the Ministry of Commerce and Supplies, the guidelines were presented to the Council of Ministers about four months ago. But the approval was delayed as the government changed in the meanwhile. </span></div>
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	<span style="font-size: 9.5pt;">The government has made a provision in the current yearâ€™s Finance Bill to give the exportes a cash incentive of two to four per cent of the export value after the foreign currency payment is received against the export. The government has allocated Rs 250 million for this purpose.</span></div>
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	<span style="font-size: 9.5pt;">Udaya Raj Pandey, the President of Garment Association Nepal (GAN) expressed frustration that the government failed to provide the promised incentive even though the time for a new budget is approaching so near. â€œThe failure to implement the promise has irritated the exporters,â€ he said. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Pandey also said that since the government levies tax as soon as the budget is announced, it should show similar promptness also in implementing the promise of providing incentives.&nbsp;</span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">PE Management Board Proposal @ Cabinet </span></strong></span></div>
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	<span style="font-size: 9.5pt;">The Ministry of Finance has submitted a proposal to the Cabinet Secretarieat for the formation of the Public Enterprises Management Board as promised in the budget announcement of the current fiscal year.&nbsp;</span></div>
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	<span style="font-size: 9.5pt;">Lok Darshan Regmi, a Joint Secretary at the Ministry of Finance said the board will coordinate and facilitate the activities of the public enterprises. </span></div>
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	<span style="font-size: 9.5pt;">However, the economists and management experts have termed this as a measure to avoid privatisation of public enterprises. In their view, this step would increase financial load on the PEs on the one hand and create one more bureaucratic hurdle in their operations. </span></div>
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	<span style="font-size: 9.5pt;">Dr Bimal Koirala, the Former Chief Secretary of the government said, â€œIt would be better to privatise the PEs than to form this board.â€</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The government has made a total loan investment of Rs 79.34 billion in these corporations so far. This year alone, Rs 16.19 billion was allocated in the budget for the 36 operational corporations. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>',
			'published' => true,
			'created' => '2011-08-08',
			'modified' => '0000-00-00',
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			'description' => 'TThe Korean Company that owns Himalayas Spring Water situated in Rasuwa has decided to sell half of its shares for Rs 200 million to Muktishree Pvt Ltd, a Nepali company.â€œThe Korean Company has........',
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	(int) 7 => array(
		'Article' => array(
			'id' => '381',
			'article_category_id' => '34',
			'title' => 'Ad And Media Expo Concludes(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12px;">T</span>he three-day Ad and Media Expo 2011 jointly organised by Advertising Association of Nepal, Alpabiram Pvt Ltd and Direction Nepal Pvt Ltd concluded on April 30. The expo organised to bring together the advertising and media industry, advertisers, clients, media owners and buyers was visited by 22,800 people. The organisers said the expo will be held next year as well.<span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Eleven New Hotelsfor NTY</span></strong></span></div>
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	<span style="font-size: 14px;">I</span><span style="font-size: 9.5pt;">n the first four months of Nepal Tourism Year (NTY) 2011, 11 tourist-standard hotels have been added. According to Shambhu Prasad Koirala, the Officer at the Hotel Department of the Ministry of Tourism and Civil Aviation (MoTCA) said new hotels were registered in the beginning of the NTY expecting good returns.</span></div>
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	<span style="font-size: 9.5pt;">â€œAs the registration procedure does not require investors to reveal the amount of capital investment, people unwilling to divulge their liquid assets are attracted to invest in the hotels,â€ said Koirala. Among the newly registered hotels, eight are in Kathmandu and rest three outside of the Valley.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">&nbsp;In 2010, 39 new hotels were added among which eight were three-star, two onestar and 29 tourist-standard. A total of 777 hotels have been registered with MoTCA so far. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Government Drafting Railway Law </span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he government is drafting a railway law to provide a legal framework for facilitating the construction of railway lines and operation of railway services. According to the Ministry of Commerce and Supplies (MoCS), the law is expected to be promulgated in the fiscal year 2011-12. A four-member team led by MoCS Joint Secretary Toya Narayan Gyawali is drafting the law.</span></div>
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	<span style="font-size: 9.5pt;">Matrika Prasad Marasini, a Undersecretary at the Law and Decision Implementation Section said, â€œIn the absence of such a law, the railway services in operation in Janakpur and Birgunj dry port are regulated by Indian Railways. After the law comes into effect, they will be regulated by Nepal Railways.â€</span></div>
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	<span style="font-size: 9.5pt;">According to the draft of the law being prepared now, a separate unit under the Ministry of Labour and Transport Management will be set up to coordinate railway issues.&nbsp;The government may also form a railway board under the proposed law.</span></div>
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	<span style="font-size: 9.5pt;">Currently Nepal has railway services operating on 29-kilometres stretch of Janakpur-Jayanagar. Similarly, there is a structure of railway upto Amlekhagunj from Raxaul though the service on this area is available only upto the Birgunj Dry Port from Raxaul. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The Ministry of Physical Planning and Construction has set a target to develop 4,000 kilometres of railway tracks in Nepal in the next 20 years. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Six Sigma Yellow Belt Certification </span></strong></span></div>
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	<span style="font-size: 14px;">S</span>ix Sigma Yellow Belt Certification Training conducted by Growth Sellers, a human resource company, concluded on May 15. During the two-day programme, Dr R S Chalapathi from the India-based Institute of Sigma Learning trained 35 senior managers from various companies. Six Sigma is a modern management tool that helps to lower cost and increase productivity. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">CG sponsors RCT</span></strong></span></div>
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	<span style="font-size: 14px;">C</span>G Electronics, a wing of Chaudhary Group (CG) will provide Rs 500,000 as sponsorship amount to Ranipokhari Corner Team (RCT) for a year. The two parties signed an agreement to this effect on May 12. For the contract period, RCT players will wear the jerseys during matches bearing the LG Mobile logo. .</div>
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	Ramesh Shrestha, the General Manager of CG Electronics and Bijay Manandhar, the President of RCT signed the agreement. Shrestha said such sponsorships by business houses will help develop professionalism in in Nepali football. Manandhar said the sponsorship has provided a great financial relief to the team, for this year. CG has been sponsoring the education and sports sectors for a few years now. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">SPI Acquires Worldlink</span></strong></span></div>
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	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">Software Paradigms International Group (SPI), an Atlanta-based company providing technology service and financial solutions, has acquired Worldlink Technologies, a Nepali software company. According to a statement issued by Worldlink, the company will now be known as SPI Nepal. The current Worldlink CEO Yajurendra Shrestha will head the new company as well. </span></div>
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	<span style="font-size: 9.5pt;">Established in 2001, Worldlink has been involved in software development related to human resource, e-governance and social security. Apart from domestic customers, the company also works with the government of Orissa, India and a&nbsp;Delhi based company, Invest India Micro Pension Services. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">SPI entered Nepal after establishing footholds in Europe, Asia, North America and Australia. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>',
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			'description' => 'The three-day Ad and Media Expo 2011 jointly organised by Advertising Association of Nepal, Alpabiram Pvt Ltd and Direction Nepal Pvt Ltd concluded on April 30. The expo organised to bring together the advertising.....',
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	(int) 8 => array(
		'Article' => array(
			'id' => '380',
			'article_category_id' => '34',
			'title' => 'Financial Closure Of Upper Tamakoshi(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">epal Telecommunications Corporation (NTC) has agreed to finance Rs 6 billion to construct the Upper Tamakoshi Hydropower Project. A 456 megawatts hydroelectricity project is financed by domestic investors and being developed for an estimated cost&nbsp;of Rs 35.29 billion. </span></div>
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	<span style="font-size: 9.5pt;">Kanhaiya Lal Gupta, the Deputy Managing Director of NTC and Mrigendra Bahadur Shrestha, the Project Director of the Upper Tamakoshi Hydropower Limited (UTKHPL) signed the agreement.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Similarly, Employees Provident Fund has been investing Rs 10 billion, while Citizenâ€™s Investment Trust and NTC have put Rs 2 billion and Rs 6 billion respectively for the project. The remaining Rs 11.8 billion will be generated by the government. The project, to be completed in 2015, has 70 per cent investment financed by loans and the rest 30 per cent from share capital. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>
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	<strong><span style="font-size: 16px;"><span style="color: rgb(51, 51, 153);">Samitivej to Manage Grande Services </span></span></strong></div>
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	<span style="font-size: 14px;">G</span>rande Hospital Nepal and Samitivej Hospital Thailand have reached an agreement for service management of the hospital. Dr Roop Jyoti, the President of Grande and Reymond Chong, the CEO and Managing Director of Samitivej signed an agreement to this effect recently in Kathmandu.</div>
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	Grande Hospital, being constructed by CE Construction at Tokha, will have a capacity of 150 beds in a 14-storied building. The hospital plans to offer international standard health facilities at a low cost. Being constructed in a 210,000 square feet area, the building will be disabled-friendly. The hospital is being constructed at an investment of Rs 1.40 billion. It will have eight operation theatres, five elevators and four staircases. Jyoti hoped that once the hospital begins its services, the trend&nbsp;to go abroad for treatment will come to an end. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<strong><span style="font-size: 16px;"><span style="color: rgb(51, 51, 153);">MoTCA Seeks Updation of Hotel Standards </span></span></strong></div>
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	<span style="font-size: 16px;">T</span><span style="font-size: 9.5pt;">he Ministry of Tourism and Civil Aviation (MoTCA) is working to update its criteria for hotel and restaurant standards. Keshav Prasad Bimali, the Joint Secretary at the ministry said, also on the cards is the change in the rule so that the hotels will be mandatorily required to register themselves with MoTCA. The code is being updated to accommodate the changes made in various policies and rules four years ago (2064 Bikram Sambat) when the existing code was promulgated, he said. </span></div>
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	<span style="font-size: 9.5pt;">According to the existing rules, the hotels do not need to be registered with MoTCA. As a result it does not have a data on the number of hotels in operation. The code needs to be updated to include such requirements, remarked Shambhu Prasad Koirala, a Section Officer at the Hotel Division of the ministry. He said that this update will make it mandatory for hotels to be registered at the ministry and establish a renewal charge. </span></div>
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	<span style="font-size: 9.5pt;">The ministry is also planning to form a working committee in coordination with the Hotel Association of Nepal, Nepal Tourism Board, Nepal Academy of Tourism and Hotel Management and other concerned bodies for the upgradation and amendment of working directives.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The ministry said that the standard of existing five-star hotels need to be upgraded to meet SAARC standards. However, the ministry will update the code for five-star hotels only after updating the standards for the tourist-standard hotels. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Machhapuchchhre Wins Inter-bank Volleyball </span></strong></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: 0.2pt;">M</span></span><span style="letter-spacing: 0.2pt;">achhapuchchhre Bank Limited has won the inter-bank volleyball tournament beating Kumari Bank Limited with a score of 23-25, 25-21, 32-30 and 25-18 in the final. The Bank&nbsp;was awarded Rs 50,000 cash prize and a trophy. The tournament was organised to commemorate the 56th anniversary of Nepal Rastra Bank. Kumari Bank took home Rs 35,000 and the runners-up trophy. Everest Bank Limited came third beating Agriculture Development Bank. </span><span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">NIDCâ€™s 43rd AGM</span></strong></span></div>
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	<span style="font-size: 14px;">N</span>epal Industrial Development Corporation (NIDC) held its 43rd annual general meeting on May 7 after a gap of nine years. The annual reports from 2002-02 to 2009-10 were presented by NIDC Chairman Shanta Bahadur Shrestha during the meet organised in its central office at Durbarmarg. Among the major resolutions of the AGM was the decicion to change its name into NIDC Bank Limited. Coinciding with the occasion, NIDC also started ATM service from its Durbarmarg office. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Shalimar Begins Clinker Production</span></strong></span></div>
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	<span style="font-size: 14px;">S</span>halimar Cement Industry, in cooperation with Unitech Pvt Ltd, has begun trial production of clinker, a raw material used for producing cement. The industry located at Bara-Parsa Corridor has an investment of Rs 700 million and produces 30 tonnes of clinker every day.</div>
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	<span style="font-size: 11pt; line-height: 115%;">Ashok Kumar Vaidya, the Managing Director of the company said the full capacity of producing 300 tonnes every day will be utilised in one-and-a-half monthâ€™s time. While this is the fifth Nepali company to produce clinker indigenously, other industries depend on imported clinker for cement production. The company has said it will supply clinker to other industries only after meeting its own needs.</span></p>',
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		'Article' => array(
			'id' => '379',
			'article_category_id' => '40',
			'title' => 'URBAN HOUSING HOME IN HIGH-rises(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14.5pt;">T</span><span style="font-size: 9.5pt;">he conventional system of owner-built housing is still predominant but with the growing demand for land-for-house, the Kathmandu Valley is experiencing a space-constraint in recent times. It is becoming increasingly difficult for people to find suitable land to build individual residences on. However, inducing paradigm shift is a substantial challenge to overcome the tradition of building oneâ€™s own house. Vertical living, due to its sheer nature of accommodating multiple units, promises to become the preferred lifestyle option for many.&nbsp;Currently, the housing industry of Nepal is worth an estimated whopping Rs 200 billion. </span></div>
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	<span style="font-size: 9.5pt;">A total of 54 companies have received permission for construction of community or collective housing so far in the three districts of the Kathmandu Valley. These companies have received the nod to build 3,633 units of family residences against a demand of 30,000 units which is expected to exceed well over 40,000 units each year in the valley by 2020. While fiscal years 2007-08 and 2008-09 saw the highest number of new projects registration, 2009-10 had very few registrations and 2010-11 has no new projects initiated owing to lack of investment on the part of banks and financial institutions (BFIs). Om Rajbhandary, the CEO and Chairman of Comfort Housing Pvt Ltd reveals, â€œSome approved projects have continued to progress while some others have slowed down, delayed or downsized.â€ </span></div>
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	<span style="font-size: 11.5pt;">Current Scenario</span></div>
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	<span style="font-size: 9.5pt;">The overheated housing market has shown signs of meltdown intensifying the apprehension of the speculative investors leading to the BFIs losing sleep over huge loans issued to the housing developers. With the BFIs tightening issue of new loans and aggressively pursuing recovery of past loans, it will take a while before the now stagnant housing market bounces back, a developer opines. The BFIs had invested aggressively to begin with but the current slump has left them anxious due to their huge loan portfolio for the housing sector. </span></div>
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	<span style="font-size: 9.5pt;">Even though the housing industry is going through a difficult period, entrepreneurs take solace from the fact that scarcity of land along with a sense of security ensured by apartment complexes is bound to hold the business in good stead in the foreseeable future. The intended dwellers too are gaining confidence and slowly gravitating towards the concept of community living of late. On an average, the prices of apartments vary from anything between Rs 6 million to well over Rs 10 million. However, some companies have recently introduced economy flats costing about Rs 1.7 million.</span></div>
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	<span style="font-size: 11.5pt;">Realtorsâ€™ Perspective</span></div>
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	<span style="font-size: 9.5pt;">Itâ€™s about time the term â€˜realtorâ€™ came into force with obtained legality if Nepalâ€™s housing sector were to register a positive growth. The Nepal Land and Housing Developersâ€™ Association (NLHDA) has proposed the government to issue â€˜licence to operateâ€™ tag so that only the licensed realtors have the right to ply the trade. It will regulate the housing sector to a great extent and bring the realtors within the taxation bracket. Till now, the sector has been operating on an ad-hoc basis in the absence of concrete bylaws, says Ichha Raj Tamang, the President of NLHDA. He adds that the private housing projects have also been suffering from lack of proper legislation on housing development â€“ an effective â€˜code of ethicsâ€™ and â€˜property transaction actâ€™ are much desired for. </span></div>
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	<span style="font-size: 9.5pt;">Majority of the construction work is being carried out in a haphazard manner and in unplanned areas. NLHDA has urged the authorities to strictly regulate the construction business to address the ever-growing demand of urban construction and check the blatant use of landscape for its vertical growth. NLHDA has recommended that housing development be sought through land pooling projects. It will help plan a particular area right from the outset and thus ensure desired infrastructure required for residential colonies and apartment complexes. The painfully lengthy process of acquiring licenses is another impediment towards the smooth functioning of the sector. To address this issue, the developers have been asking the government to facilitate a one-door licensing process.</span></div>
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	<span style="font-size: 9.5pt;">The ceiling imposed on realty lending by the Nepal Rastra Bank (NRB) resulted in a slowdown of the housing sectorâ€™s growth. The central bank had directed BFIs to limit lending exposure to the housing sector to 25 per cent of their total investment portfolio. It had done so to deal with the fast inflating realty bubble. At odds with each other not too long ago, housing developers and bankers now collectively look at ensuring smooth recovery of realty lending. According to bankers, the current slowdown in the housing sector has much to do with the mismatch in demand and supply. The construction of apartments has continued unabated while their performance in terms of selling the properties has been dismal. Building trust among the targeted buyers is of vital importance too because people still havenâ€™t come to terms with trusting realty developers.</span></div>
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	<span style="font-size: 9.5pt;">Housing entrepreneurs who resisted selling for fear of descending price levels have now started to slash prices â€“ as much as 30 per cent â€“ to tempt buyers and recover their investments. Despite transactions nose-diving, the developers had hoped for a recovery but are now finding it hard to entice buyers even at reduced prices. The slowdown in realty has affected the BFIsâ€™ performance as their loan portfolio is hugely dominated by the housing sector. Quite naturally, despite committing long-term lending to the sector, the banks have now started to exert pressure for early repayment in an attempt to minimise their realty loan exposure. Currently, the total investment in the housing sector is Rs 97 billion which is 18.9 per cent of the total investments made by the BFIs, states Bhaskar Mani Gyawali, the NRBâ€™s Executive Director â€“ BFI Regulation Department.</span></div>
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	<span style="font-size: 11.5pt;">Central Bankâ€™s Influence and Government Policies</span></div>
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	<span style="font-size: 9.5pt;">The housing industry has been facing a crisis-of-sorts ever since the NRB issued stern directives in an attempt to prevent simulated skyrocketing prices of housing properties. The mandatory provision of declaring income source for purchase of properties worth a certain amount is another major hiccup. The hike in interest rates on loans from 9 to 17 per cent has further compounded the prevailing miseries. These are just a few among the many bottlenecks that have blocked the desired growth of the housing sector, industry entrepreneurs lament. </span></div>
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	<span style="font-size: 9.5pt;">The governmentâ€™s imposition of capital gains tax on housing transactions, too, has drove away buyers. It is but understood that revenue mobilisation through taxation is the primary objective of the government. Therefore, it comes as no surprise that the government has hiked property tax as well. Besides, the NRB also wants to minimise the speculative aspect of the housing business to prevent the bubble burst. </span></div>
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	<span style="font-size: 11.5pt;">Buyersâ€™ Viewpoint</span></div>
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	<span style="font-size: 9.5pt;">Unreal prices of apartments coupled with increasingly higher interest rates on home loans have made it extremely unaffordable for the general public to purchase new properties. And those who can afford are not too sure about the safety standards of these vertical structures especially with the imminent threat of an earthquake hitting the country anytime. They know that there are some developers who are out there to make a fast buck ignoring the threat to peopleâ€™s lives in the event of a natural calamity. </span></div>
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	<span style="font-size: 9.5pt;">However, the central bankâ€™s decision to create a separate category for home loans of up to Rs 6 million as â€˜personal home loansâ€™ has come as a respite and is widely appreciated. It has also provided a fresh lease of life to the low-lying housing sector. With some developers claiming to have sold a good number of units the moment the properties are opened for booking, rumours of artificial transactions have kept the consumers at bay. â€œThe buyers also expect a certain amount of transparency on the part of the developers to avoid the situation of investing money where the developers havenâ€™t put any,â€ says Ashoke SJB Rana, the President of Nepal Bankersâ€™ Association. Having a transparency mechanism will enable the buyers to assess the developersâ€™ strength and give them confidence to invest. </span></div>
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	<span style="font-size: 11.5pt;">Building Parameters</span></div>
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	<span style="font-size: 9.5pt;">The Department of Urban Development and Building Constructionâ€™s (DUDBC) monitoring mechanism ensures that the apartment complexes are designed as per established specifications to meet safety requirements. It also warrants the size of open space, size and number of units, road access and ground coverage among others. The department is responsible overall to guarantee the completion of procedures on part of the developers before commencing construction. Nepal is the 11th riskiest earthquake zone in the world and the Kathmandu Valley itself is located in one of the worldâ€™s most seismically active zones. This makes it imperative for the developers to plan appropriate structural designs and adhere to the National Building Code.</span></div>
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	<span style="font-size: 9.5pt;">The housing companies acquire their licenses only after fulfilling the required procedures. The developers get planning permit from the Town Development Committee (TDC) based on existing regulations and by-laws. The apartment buildingsâ€™ plans and designs that meet the National Building Code on safety, electricity, parking space, fire, other disasters and structural design are later approved by the DUDBCâ€™s division office, informs its Deputy Director General Shivahari Sharma. The projects also need to pass the Environmental Impact Assessment (EIA) for big scale ventures and Initial Environment Examination (IEE) for the smaller ones. </span></div>
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	<span style="font-size: 11.5pt;">Housing for the Masses</span></div>
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	<span style="font-size: 9.5pt;">While the housing companies have been primarily catering to the needs of the wealthy, the lower middle class and the poor still cannot afford the properties developed by these companies. Therefore, though the housing business is providing shelters, it has overlooked the needs of the urban poor. In contrast, housing projects in a lot of countries look at addressing the needs of the economically weaker section of the population on a prioritised basis. </span></div>
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	<span style="font-size: 11.5pt;">Housing for Foreigners</span></div>
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	<span style="font-size: 9.5pt;">Nepal can very well attract foreign direct investment (FDI) by allowing ownership of apartments to the expatriate community living in Nepal. The government has floated an idea to this effect to let foreigners buy apartments for residential purpose. A preliminary plan has already gathered shape for this purpose. If this turns into reality, it promises to resurrect the housing industry and lend dynamism to the construction sector. Since the housing sector needs fresh capital injection to keep the momentum going, allowing foreigners to buy apartments could hold it in good spirit. This will make the sector more financially viable and generate greater employment courtesy the construction boom. </span></div>
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	<span style="font-size: 11.5pt;">Looking Forward</span></div>
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	<span style="font-size: 9.5pt;">â€œThe government must give the housing sector the importance it deserves and treat it as a national priority,â€ says Rajbhandary of Comfort Housing. Provision of affordable housing in partnership with the private sector and making newly constructed and under construction buildings safe for residential purpose will be critically important in the days to come. Quality urban housing is at the heart of the struggle to accomplish enhanced living standards. Till about a decade ago, there were limited developers but today, the consumers have a varied choice in the nature and price of the products. Along with the demand, appropriate products, for example, low priced houses are bound to enter the market sooner than later. </span></div>
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	<span style="font-size: 9.5pt;">If all existing problems settle with time, investing in a developer-built property can prove to be a sound idea because it spares one the hassle of managing sewage, construction materials and labour, water, electricity and TV cable connections and is more secure and comfortable, in general. The developers too would do themselves no harm if they adhered to safety standards and practiced customer satisfaction for a market that is on the course of getting matured. The hugely untapped potential of budget housing holds much promise because thatâ€™s what the largest section of buyers is waiting for. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Given the scarcity of land and the ridiculously high prices of the little land available within the city limits, there will be no option other than to grow vertically, says Umang SJB Rana, the CEO of Westar Properties. Nepalâ€™s urban population is expected to rise 18 per cent by 2015 and 30 per cent by 2030 which underlines the huge potential and a promising future for the housing sector. By correctly identifying the target segment, developing feasible projects, introducing right products at the right time and strategising marketing efforts in accordance will certainly ensure that the housing business is here to stay. Investors who are buying properties only for secondary transactions instead of residing in them end up creating â€˜ghost housesâ€™ galore. It would be great if the apartment complexes and housing colonies find buyers who are actually interested in turning them as their â€˜homesâ€™. The day is not too far when we shall see vertical structures dominate Nepalâ€™s urban landscape all over. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.05pt;">n</span></div>
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	<span style="font-size: 9.5pt;">Brihat Community Living - Sitapaila</span></div>
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	<span style="font-size: 9.5pt;">â€œEco-friendly homeâ€ is an achievement for the urbanization, to achieve one goal - to create a home which is â€˜friendlyâ€™ to its inhabitants and sympathetic to the environment in which we live. Our Project incorporates a range of eco-friendly products and concepts.</span></div>
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	<span style="font-size: 9.5pt;">Its main features include:</span></div>
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	<span style="font-size: 9pt;">1. Solar electricity provision â€“ for streetlights</span></div>
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	<span style="font-size: 9pt;">2. Rain water recharge for water conservation</span></div>
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	<span style="font-size: 9pt;">3. Proper garbage disposal system for waste reduction</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">4. UV protection sticker on south facing windows</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">5. Use of concrete lightweight blocks in place of bricks- for reduction of carbon monoxide emission and conservation of clay</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Owned &amp; Marketed By:</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">TCH Tower - IV, Ground Floor, Block - A</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Sitapaila, Kathmandu, Nepal</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Tel: +977 1 4282086/4286821</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Fax: +977 1 4288820</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">E-mail: info@brihatinvestments.com</span></div>
<div style="text-align: justify;">
	<a href="http://www.brihatinvestments.com/"><b><span style="font-size: 9.5pt; line-height: 115%;">www.brihatinvestments.com</span></b></a></div>',
			'published' => true,
			'created' => '2011-08-08',
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			'keywords' => '',
			'description' => 'The conventional system of owner-built housing is still predominant but with the growing demand for land-for-house, the Kathmandu Valley is experiencing a space-constraint in recent times. It is becoming......',
			'sortorder' => '295',
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	(int) 10 => array(
		'Article' => array(
			'id' => '378',
			'article_category_id' => '40',
			'title' => 'Downtown Housing Company(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 10pt;">D</span><span style="font-size: 9.5pt;">owntown Housing Company Pvt Ltd, a parent company of Downtown and City View Apartments, was founded in 1992 as a developer and manager of high-quality property units. Over the years it has provided products and services to accommodate the urban middle class by developing high-quality residential properties. Today, Downtown Housing Company is one of the most respected and diversified service firms available with dedicated people who serve a growing client base that reaches far and beyond.</span></p>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </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;">Downtown Housing manages the process from conception through completion - an approach that has been perfected over time to exceed the clientsâ€™ expectations. Downtown proactively works to ensure every property as once-in-a-lifetime investment opportunity for its clients, giving it the special care and attention to detail that enhances value for living within.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">City View provides clients with the kind of peace and tranquillity they want. Only 38 exclusive apartments (including 2. duplex pent houses) have been built here, with rich and stylish complex.</span></div>
<div style="text-align: justify;">
	Â </div>
<div style="text-align: justify;">
	Â </div>
<div style="margin: 0in 0in 5.65pt; text-align: center;">
	<span style="font-size: 15.5pt;">Guna Colony </span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt; letter-spacing: -0.2pt;">E</span><span style="letter-spacing: -0.2pt;">stablished in 1998, Guna Colony Pvt Ltd is a large and reputable company involved in property development. It has already completed properties like Stupa Housing in Sinamangal, Stupa Colony in Buddhanagar, Reliable Colony in Bhainsepati and LP Apartment in Lazimpat. New projects such as Bhainsepati Apartments, BN Apartment and GN Apartments in Gwarko have already been launched.</span></div>',
			'published' => true,
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			'description' => 'Downtown Housing Company Pvt Ltd, a parent company of Downtown and City View Apartments, was founded in 1992 as a developer and manager of high-quality property units. Over the years it has.........',
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	(int) 11 => array(
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			'id' => '377',
			'article_category_id' => '40',
			'title' => 'Housing In BirgunjSlow Growth, High Hopes(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong><i>By Bimmi Sharma</i></strong></span></div>
<div style="text-align: justify;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">H</span><span style="font-size: 9.5pt;">ousing business may be mushrooming in the Kathmandu Valley. But the story is different in Birgunj. People with diffent backgrounds find it quite normal to live in separate flats and apartments within the same building in the capital city.&nbsp;But such concept of community living hasnâ€™t gone down well with Birgunj locals. They still prefer to stay separate from people of other religion, caste or culture. It is this mindset that is the major impediment for a flourishing housing industry in the city, lament housing entrepreneurs. They complain of having a difficult time implementing the idea of community housing that was first conceptualised here 14 years ago. So far, all Birgunj could manage are three apartment complexes and a fourth one under construction. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </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;">Nanakchand Ashwani and Shyam Rungta were the first ones to enter the housing business here. They have built two apartment complexes - â€˜Ganeshâ€™ and â€˜Lakshmiâ€™. These two five-storied apartment complexes have a total of 40 units. The flats at Ganesh were priced at Rs. 900,000 and at Laxmi at Rs 1.35 million per unit. However, these flats remained unsold for a long time. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </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;">Eight years after these attempts, Triveni Group constructed a 10-storied apartment complex â€˜Triveni Gopalâ€™ in Birta area of Birgunj. Built at a cost of Rs 50 million by Birendra Sanghai of the Triveni Group, the complex has 72 units in total. Sajjan Kumar Chimariya, the manager of the complex says, â€œApartment culture is yet to pick up in Birgunj because people are more comfortable with the idea of building houses on their own land and to enjoy complete ownership.â€ He adds that the project barely managed to recover the investment and did not yield any profit whatsoever. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </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;">Despite the apartments having all facilities including electricity, water, garden, park and security, people find these rather expensive and inconvenient. Out of the 72 flats in â€˜Triveni Gopalâ€™, 50 are occupied while the owners of the rest 22 units havenâ€™t started residing here. They rather want to sell their properties. â€œThe countryâ€™s volatile situation is primarily responsible for the lukewarm response towards housing in Birgunj,â€ says Chimariya. He adds, â€œThere is no future for housing business in Birgunj. Itâ€™s advisable that the new entrants donâ€™t enter the market here.â€</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </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;">â€˜Prasanna Apartmentsâ€™ which came into being a year ago has started getting residents moving in already. Tara Shumsher Rana, a Director of â€˜Prasannaâ€™ apartments opines, â€œThe housing business is experiencing a low right now but it has a good future in Birgunj due to the impending development of infrastructure in and around this city.â€ The construction of Nijgadh International Airport close to Birgunj, Kathmandu-Nijgadh Fast Track Road, Integrated Customs Checkpoint, Birgunj-Thori Road, Birgunj University and a well developed agriculture market are bound to make Birgunj a more attractive place to live. These developments will have a positive impact on the housing industry, opines Rana. His company Prasanna Constructions is in the business of constructing buildings for its clients for 25 years now. Built at an investment of Rs 50 million, â€˜Prasanna Apartmentsâ€™ has 20 flats altogether and costs anything between Rs 3.2-4 million. Of the 20 flats, only thee are remaining to be sold, Rana informs. â€œThough the present situation is not conducive, once there is political stability and economic progress begins, housing business in Birgunj will definitely flourish,â€ Rana says optimistically. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 9.5pt;">Ashok Kumar Baid, an industrialist who owns Shalimar Cement has joined the housing business and plans to build â€˜Kamdhenu Apartment Homesâ€™ using the â€˜Kamadhenuâ€™ brand under franchise from the Indian owner of the brand. To be constructed at an investment of Rs 800 million, this 12-storied apartment with 134 units will be ready for occupancy in two yearsâ€™ time. Each flat in this â€˜first apartment complex of international standard in Birgunjâ€™, as the developer calls it, will cost Rs 7-8 million. â€œInterested buyers will need to pay 20 per cent of the total amount upfront. The facilities include swimming pool, health club, gym, park, garden and provision store,â€ says Baid. He says he is confident of selling all the units of his project which will come up at Ward 13, Adarshanagar in Birgunj. Like Rana, Baid too is optimistic that housing industry in Birgunj will grow as various developments are taking place in and around Birgunj. He says, â€œBirgunj is a leading business destination and the development projects being implemented in and around here will definitely benefit the housing industry as well as other businesses.â€</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<p style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">â€˜Kamdhenu Apartment Homesâ€™ will be the fourth apartment complex in Birgunj. The previous three apartment houses have a collecgive investment of Rs 150 million. When the investment proposed for Kamadhenu and some other projects that are in the pipeline are added up, the total investment goes up to Rs. 1 billion. Ashok Kumar Temani, the President of Birgunj Chamber of Commerce and Industry is upbeat about the business potential of apartment complexes. â€œIn the future, Birgunj will be like Shanghai or Mumbai. Once the projects which are being constructed at break-neck speed are completed, we will see skilled workers flocking to this city for work,â€ Temani predicts. He continues, â€œThese peopleâ€™s housing requirements ensure a bright future for the housing industry here.â€ </span></p>',
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			'description' => 'Housing business may be mushrooming in the Kathmandu Valley. But the story is different in Birgunj. People with diffent backgrounds find it quite normal to live in separate flats and apartments within the...........',
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	(int) 12 => array(
		'Article' => array(
			'id' => '376',
			'article_category_id' => '40',
			'title' => 'Growing Housingin Pokhara(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12px;"><i>Text and photos: Deepak K Shrestha</i></span></div>
<div style="text-align: justify;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">With increasing urbanisation and modernisation, the housing industry in Pokhara is gaining momentum though not as fast as in Kathmandu. Along with tourism, education and the health sector, housing is fast becoming an attractive investment prospect for investors here. In terms of population growth and migration, Pokhara is second only to Kathmandu. However, the community housing business has not grown in the same proportion. Entrepreneurs believe that since it is a new concept, people will take time to get attracted to this concept. However, it is already a seven-year-old industry in Pokhara, with two companies already in it while other two are preparing to enter the fray.<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;">Annapurna Developers Pvt Ltd (with the brand name â€˜Fishtail Residencyâ€™) and Pokhara Homes Pvt Ltd have started operations already in Gharipatan of Pokhara Sub Metropolitan City. These companies claim to provide facilities at par with the housing complexes in Kathmandu such as good roads, water and power availability as well as health club. This has attracted buyers who have the means and desire to live in such housing complexes. Besides these, Road Show Real Estate Pvt Ltd and Gandaki Real Estate Pvt Ltd have entered this business recently. While the Road show has its project at a location called â€˜Deepâ€™ that is in the Ward No 16 of Pokhara Sub-Metropolitan City, Gandaki has its project at Lekhnath Municipality under the brand name â€˜Lekhnath Dream Colonyâ€™.&nbsp;Investors claim that the consumers have shown significant interest lately for buying such property.<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;">While renowned contractor and industrialist Surya Bahadur KC is the investor for Pokhara Homes Pvt Ltd, Dhruba Kumar Shrestha, Kalu Gurung and Bindu Kumar Thapa are the investors in Fishtail Residency, Road Show and Gandaki Housing respectively.<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;">Pokhara Homes started building houses on 70 ropanis of land about seven years ago but faced adversity for the first few years. Tej Baniya, the Operations Manager of the company said, â€œWe started doing good business only about three-four years ago.â€ A total of 54 houses were built under phase-I out of which 52 have been sold already. â€œWe are starting phase-II in the next six months which will have 32 units,â€ Baniya informs. The company sells two-and-a-half-storied bungalows, complete with five bedrooms, built on 8-10 annas of land. Baniya claims that each house costs Rs 9-9.5 million just for the construction. He further says that the mere announcement of phase-II has attracted 17 bookings already. Pokhara Homes is also constructing 20 colonies and 14 separate houses near Chorsanghu in Pokhara. The houses and apartments in this area will be less expensive than the ones in Gharipatan.<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;">All housing companies in Pokhara are conducting business with prior approval from the authorities concerned â€“ i.e. municipality and Pokhara Valley Town Development Committee. â€œDue to close proximity of Gharipatan area to the airport, we are not allowed to construct buildings higher than two-and-a-half-stories,â€ says Bhupendra Shrestha, the Marketing Director of Fishtail Residency. The company which started work about four years ago on 21 ropanis of land has already sold 40 of the total 66 units constructed. The buyers have already started residing in 30 of these units, each one a two-and-a-half-storied, four-bedroom bungalow costing over Rs 10 million.<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;">Gandaki Real Estate Pvt Ltd that was primarily dealing in real estate holdings thus far has started constructing housing units on 81 ropanis of land in Talchowk of Lekhnath-8. The company has a target of building 30 units within a year, each unit occupying 5.5-8 annas land and priced between Rs 9 and 15 million.<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;">Suman Kumar Gurung, the Pokhara Branch Manager of Road Show Real Estate said that a total of 108 units will be constructed in Deep of Pokhara-16. The units built on 5-9 annas are targeted at the upper and middle class consumers. The housing complex will have kindergarten, tennis court, swimming pool, cable television, telephone and power generator among other facilities. </span></div>
<p style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">The stakeholders of Pokharaâ€™s housing industry include locals as well as the rich from the capital. Nepal Armyâ€™s retired general Pyar Jung Thapa and Galaxy Schoolâ€™s founder Gita Rana have already bought properties in the city. Besides the established businessmen, the newly rich people as well as&nbsp;retired soldiers of foreign armies have shown tremendous interest in Pokharaâ€™s community housing units. Gurung says, â€œPeaceful environment, security and a modern lifestyle is attracting retired professionals immensely.â€ He adds that the housing industry in Pokhara has a great future because the very name of the city rings a bell in peopleâ€™s ears since it is considered â€˜heaven on earthâ€™. Political instability, the Central Bankâ€™s endless directives and lack of investment climate have affected the housing sector as well. But the housing entrepreneurs remain optimistic that the flourishing housing business outside the Kathmandu Valley will be provided encouragement by the government.</span></p>',
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	(int) 13 => array(
		'Article' => array(
			'id' => '375',
			'article_category_id' => '40',
			'title' => 'We Need To Reinvigorate The Real Estate Climate (june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 14px;"><b><span style="line-height: 120%;">Bijay Rajbhandary</span></b></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 7pt; line-height: 120%;">Chairman and Managing Director</span></div>
<div style="text-align: justify;">
	<span style="font-size: 7pt; line-height: 115%;">CE Construction Pvt Ltd<br />
	<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	Housing culture has been in practice for almost a decade now. It is certainly getting popular as it provides infrastructure facilities like security, drinking water, electricity, internet, common space and other facilities. However, despite the growing trend of community housing, we can't expect the individuals to completely stop building independent residences.</div>
<p>
	&nbsp;</p>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">You have been in the housing industry for some time now.&nbsp;Where do you stand currently? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	Real Estate is our core strength but at the same time, we have been operating in other sectors as well. We have a wide range of properties in different locations in and outside of Kathmandu and our ultimate objective in the real estate is to serve the mass. Currently, the housing sector is experiencing a slow growth. Different stakeholders such as the government, regulatory body, financial institutions, developers, investors and individual buyers are somehow responsible for the slow pace of the housing industry.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">The NRB has relaxed lending for the housing sector recently. How big is the relief? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	It has definitely provided relief to some extent. But the impact is yet to be seen because there is a liquidity crunch in the market and the banks have a problem maintaining credit-to-deposit ratio. We need to work very hard to regain a prosperous real estate climate.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">As the banks are shying away from investing further in this sector, how do you plan to take your projects forward?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.15pt;">We have been using different financial tools on a project-to-project basis and the major portion of our cash flow is coming through sales. There are basically two categories of buyers the speculative investors who intend to sell the property at later date at higher prices and the end users who really want to settle in those homes. Both types of people seem quite reluctant to invest in this sector at the moment because of political uncertainty and unclear policies. We are working hard to come up with innovative tools to cater to both the categories. At the same time, we are introducing attractive packages for the buyers. Project management being our strength, we periodically map our project execution plan, assess the risks and the uncertainties and act accordingly. Even though the banks are going through a difficult time, they have been extending cooperation towards us because of our credibility. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">The interest rate has tremendously increased increasing the cost of housing development and eventually the price. Thus the properties are now beyond the general public's affordability. What do you suggest to tackle this problem?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.15pt;">Yes, the housing sector is reeling from the impact of the interest hike, however, it is minimal. The projects are usually funded through equity, borrowings from the financial institutions, credit from the vendors and subcontractors and most importantly, from sales. In general, the share of bank funding in a project is about 30 to 45 per cent of the base cost. Of the sales price, the share of bank funding is only 25 to 35 percent. So, the interest hike of 5 per cent has an impact of about 1.25 to 1.75 per cent on the sales price. The developers should be willing to absorb that from his profit in view of this difficult time. Therefore, the slaes price need not go up just because the interest rate has gone up. In order to continue with the planned projects, the developers will have to resist hiking the price and be content with lower profit. This is the best strategy till the buyers are in wait and watch mentalality. The impact on sales is not because of the price of the product itself but due to the interest on loan which buyers take from the financial institutions. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">Don't you think that the houses and apartments are priced unnaturally high? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">When we talk about the price of the housing products, one needs to take into account the basic components: the price of the land as well as the cost of the building and infrastructure. So, in the current context, developers can only play with the land price as the other two components are easy to calculate. We ask the buyers compute the price of the above mentioned components of our units and let them sum it up. As far as the land price is concerned, buyers can check the price in the project neighbourhood. Our price turns out to be 20 to 25 per cent less than what the buyers come up with after such calculation.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	Since the buyers are getting the finished product, they save in the hassles that they may otherwise go through when they build their house on their own. If you assign monetary value also to these hassles, the houses that you buy from a developer are much cheaper than what you will have if you construct it on your own.&nbsp;In our case, it is even cheaper because we are the single real estate solution provider- we buy the land ourselves which saves in the service fee of the broker, we do in-house designing, we ourselves are the contractors and we buy local material in bulk and import many branded materials through our trading division. In comparison, individual house owners building their own house have to buy all these on their own in retail. In that process they end up paying higher for everything. And quality is the further value addition when you buy from a developer because the developers are equipped with resources like manpower, equipments and construction technology.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">It is said that apartments are not much preferred by Nepali people. Therefore, a lot of apartment units from the developers are lying unoccupied. How do you view this?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.15pt;">&nbsp;This is very true but at the same time, we do need to understand that any change takes time. Currently, a number of units of completed apartments are either still unsold or unoccupied even if they are sold. Therefore, progress of many projects is slowed. However, this slowdown in the progress is not only due to inadequate sales but also due to lack of fund as bank lending is curtailed. Many developers fear that if they borrow at high cost and finish the units but they remain unsold for long, they may have to incur very high maintenance cost for such apartments.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	However, we in CE are trying to complete all our projects on time to send a positive message across. Presently, the criteria for the buyers selection of a property are: the credibility of the developers and the physical status of the project. Buyers are comfortable in buying finished products because it is like buying any other commodity. Counselling as well as other marketing tools might not be that effective at the moment as compared to putting on sale the finished product.<br />
	 </div>
<div style="text-align: justify;">
	No matter how the people at present may view the apartments, the apartment projects are viable because the price that the buyers of such apartments will be paying will be lot cheaper when compared to the upgraded lifestyle that the buyer can enjoy in such apartments. It is just a matter of time before people shed their inhibitions about buying apartments.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">What are the required measures to improve this sector?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.05pt;">First of all, the country needs to assess whether real estate is a need for us or not. If yes, all the concerned parties including the developers need to extend their full cooperation. To gain the confidence of the buyers, I have different recommendations to my colleagues. Those who have not started their projects must have a thorough plan to work out the cash flow before they start the project. They must also have a full proof marketing plan. As for those who have started their projects, their primary responsibility should be to complete the sold units fast and meet the contract conditions as well as reschedule construction of unsold component of the project based on cash flow and sales forecast. This strategy will not only help win the confidence of the buyers and investors but also that of the financial institutions.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.15pt;">The average age of a building is around 50 years. What will happen to those living in the apartments and individual houses developed by housing developers after this time period? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The age of a building depends on the technology used to build it. The property is insured against earthquake, fire or any other kind of damage. If something happens during the lifetime of a building, either a community housing or an apartment building, it will usually be compensated through insurance.&nbsp;Once the building's lifetime expires, the law clearly states that the ownership of the property will be ascertained on a pro-rata basis. You have two options - either to rebuild the property with the same proportion of ownership or if all the flat owners of a particular property agree to sell it, they will get the sales proceeds divided amon themselves on a pro-rata basis. If the property value grows tremendously during the lifetime of the building or afterwards, the owners will have the option to demolish and come up with a different product. For example, it can be a commercial complex or any other product that may yield higher return. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">Is there an issue with the ownership of the flats? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	Well, there is no issue whatsoever at all regarding flat ownership. Once you buy a flat, you get an ownership certificate from the Land Revenue Office. When a building is complete, the municipality and the department of urban development and physical planning inspect it and issue the completion certificate. It then recommends the Land Revenue Office which issues you the certificate of ownership.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">How long will it take to change the housing culture from independent houses to community living in flats and condominiums ?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	Housing culture has been in practice for almost a decade now. It is certainly getting popular as it provides infrastructure facilities like security, drinking water, electricity, internet, common space and other facilities. However, despite the growing trend of community housing, we cant expect the individuals completely stopping to build independent residences on their own. This is because housing projects will not be able to meet the individual requirements of all the people.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">Tell us something about your ongoing projects? </span></strong></div>
<p style="text-align: justify;">
	<span style="font-size: 11pt; line-height: 115%;">CE's current housing projects include: Vinayak Colony (176 units of independent houses) in Bhaisepati, Grande Towers (529 High-End apartments) in Dhapasi, Veena's Residency (76 units independent houses) and Harmony Housing (74 units independent houses). Similarly, we have recently completed Vinayank Colony-phase 1 in Bhaisepati, Rio Apartment in Kupondol and The Retreat Apartment in Bijayshwori. We are also coming up with two affordable independent housing projects in Sitapaila and Budhanilkatha.</span></p>',
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			'title' => 'Developers-built Housing Market Is On The Rise (june 2011)',
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			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 14px;"><b><span style="line-height: 120%;">Om Rajbhandary</span></b></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 7pt; line-height: 120%;">CEO and Chairman</span></div>
<div style="text-align: justify;">
	<span style="font-size: 7pt; line-height: 115%;">Comfort Housing Pvt Ltd</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	Over the past three years, the land prices have risen astronomically high and it has become a speculative market. Investors have invested because they saw prospects for profit. Such investors are not selling as&nbsp;they are waiting for higher prices. And they will continue holding as long as they have the capacity to hold.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>How do you evaluate the housing industry at present?</strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">I started my career as a developer and we are the pioneer in promoting community living concept in Nepal and real estate as an industry. My aim is to establish this as a professional institution because this is a very large industry where everyone can be adjusted. Human life does not exist without real estate because any building, whether it is hospital or a theatre or a residence, belongs to this sector. So, this sector should be developed in a proper way. When we compare Nepal with any other country, our urbanisation is largely unplanned. Housing industry is dependent on three elements - government, individuals and the developers. Our government has a different agenda and the government people are not bothered about well managed urbanisation. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>How do you look at the future of this industry?</strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.15pt;">Nepal's 15 per cent population live in urban areas whereas the global urban population today is 50 per cent. By 2030, our expected urban population will be around 30 per cent while the global urban population will reach 70 per cent.&nbsp;According to a survey, in Nepal, we require nearly 270,000 housing units annually. In 10 years time, one million units will need repair and maintenance. Likewise, within the Kathmandu Valley, we will have a deficiency of around 40,300 units every year. So, it has a bright future and huge potential. On the other hand, secondary transaction is equally important. In my opinion, in community living, there is 10 to 15 per cent secondary transaction. The secondary transaction also generates revenue for the government.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>How can the housing sector be revived from the current problems, such as the restrictive rule of Nepal Rastra Bank?</strong></div>
<div style="text-align: justify;">
	A number of factors affect the housing market. They are: government policies, financial institutions, building materials, building technology, households, land prices and the real estate agents. We have different policies coming from the government and the Nepal Rastra Bank (NRB). There are a few aspects in the government policy that need to be addressed immediately.<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">First is&nbsp;the capital gain tax rate that is 10 per cent for any transactions within five years and five per cent after five years. Thre is difficulty for people to afford 10 per cent capital gain tax. So, when the people sell the property in the secondary market, they report transaction figure to the government, they show a lower than the actual figure. This ultimately affects government revenue. For example, if I buy a property for Rs 10 million and sell that in a year-and-a-half for Rs 20 million, then my capital gain is Rs 10 million. And from that Rs 10 million, I am expected to pay Rs 1 million as capital gain tax to the government.&nbsp;To avoid such taxes, people are showing Rs 12 million on paper though the actual transaction is for Rs 20 million. This way, the government is losing revenue. Once the property is liquidated, the money is normally deposited in the bank. But while depositing the money in the bank, you have to show the source of the money. Hence, only Rs 10 million can be deposited. The rest Rs 8 million remains out of the system. This is one of the reasons for the current liquidity crisis.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Second, while buying land of more than Rs 3 million, it is mandatory to declare income source. This is the other concern that needs to be addressed immediately.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">Housing must be recognised as an industry so that the revenue goes into the state coffers. The NRB limitation has now been relaxed and a new loan portfolio category - home loan - has been created as well. I think the banking sector too should have a positive attitude towards housing industry. There are three different perceptions among the banks - some say that the real estate is an industry and profits can be made from this. Thatâ€™s why they have made investments in this sector. Others say that the real estate is a future industry and they need some experience in this sector. So they have made limited investments. There are yet others who regard as a very risky industry. Therefore, they have made very small investment in this sector.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	We are currently at the bottom of the real estate cycle. To recover from such a state, these government policies and the perception of the banking sector towards this industry should change.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>Though the NRB has relaxed lending, some of the housing developers say it is yet to make its impact in the market. Why such slow response?</strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Over the past three years, the land prices have risen astronomically high and it has become a speculative market. Investors have invested because they saw prospects for profit. Such investors are not selling as&nbsp;they are waiting for higher price. And they will continue holding as long as they have the capacity to hold. Some investors are keen on recovering the principal amount if they are not in a position to make profits. Some other investors are willing to liquidate even at a loss so that they may not need to continue bearing the financial burden. We are at a stage where even if we can't make profits, we have to liquidate the property. Our strength will be tested in mid-July because there will be pressure from banks. Our inventory holding capacity too will get revealed. Today, if you can sustain yourself, you will emerge winner but if you can't, you will have to liquidate to get the return on interest and principal. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>When the bank's investment was curbed, how severely were your projects affected? How did the companies manage to take their projects forward?</strong></div>
<div style="text-align: justify;">
	As per the data from the government authorities, fiscal years 2007-08 and 2008-09 witnessed the highest number of new projects registration while 2009-10 had very few and in 2010-11, there are no new projects registered at all. The projects approved in the past are making progress, but some of them are progressing very slow or they have downsized.<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.15pt;">An investor will definitely look for maximum returns. But people do not have much confidence in the real estate industry at present. So people are not putting in money. Similarly, banks are also not investing which is why this industry has slowed down.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">One indication of low sales of apartments is that Nepalis are not much attracted towards group housing. What should be done to assure them that such houses are better than individually constructed residences?</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">I personally feel that people have gained more confidence in group housing now. A decade ago, this concept was very new. Today, a number of developers have entered the market with their projects because the concept has been accepted by the people. The success or failure of a project is a different issue altogether. The concept of community living has been largely accepted by the Nepali people. Now, the percentage of owner-built houses is declining while the developers-built housing market is on the rise. In developed countries, all the people buy houses from developers only. Once you are very rich, then you may want to go for custom-built houses.<br />
	<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">People complain that the developer-built houses and flats are unreasonably priced. How can the price be brought down to make the houses affordable for more people?</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">In my opinion, the prices of the developer-built houses are reasonable at present. Therefore, the prices are not going to come down from what they are. Though some investors and developers may sell their property at even lower price than what it is at present, that will be only in case of financial distress. The land purchased by the developers was very expensive in the first place. The interest on the capital borrowed is very high. Similarly, there is a high uncertainty cost. Besides, human resource cost is getting expensive by the day. In all ways, if you compare with yesterday's price, today's price is at the same level. But the expenses have certainly increased. So, the developers have cut down on their profit. They are at a point where they can't come down any further in price.&nbsp;</span></div>
<div style="text-align: justify;">
	<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>that means there is no plan to build more affordable housing?&nbsp;</strong></div>
<div style="text-align: justify;">
	It is true that developers are not coming up with affordable housing. As a developer, we should come up with low priced products targeting the wider mass. While we at Comfort Housing are planning to come up with affordable housing, some colleagues in&nbsp;inthis industry have already brought such products to the market. So, the products will come to the market as per the demand in the market. The problem is that while the people have low budget, they have a high value house in their mind. They should also know how much they can afford and what they will get within that.</div>
<div style="text-align: justify;">
	<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>Commercial and residential housing projects are centred in few cities, mainly in the capital. Why are developers not interested to take such projects in the semi-urban areas and small towns?</strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">Well, the concept has changed now. I had started a project in Dharan a long time ago. At that time, the community living concept was not popular. The migrant population of Kathmandu is 39.6 per cent. Everyone wants to own a house here as Kathmandu is the capital city. That is why developers are mainly concentrating in Kathmandu valley. Now that the peace process has progressed to some extent, development outside the Kathmandu valley is bound to take place in a year or two. The land prices in all the commercial towns have gone up like anything and that is one of the indicators. Even in the Kathmandu valley, the projects have come up in the suburbs. Our urban area is expanding by 4.6 per cent every year. Today, three to five kilometres periphery of the ring road is also considered urban area. So, the developers are going beyond the ring road and that is why we see a lot of housing projects centred within this belt. I feel that we should go further beyond that. We should focus on the development of suburban areas so that we can minimise the load on the carrying capacity of the city.</span></div>
<div style="text-align: justify;">
	<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">The Supreme Court recently declared null and void the rule that required all transactions above Rs. 5 million to be made through bank. How much relief would it provide to the industry?</span></strong></div>
<p style="text-align: justify;">
	<span style="font-size: 11pt; line-height: 115%;">Not much because the problem is more with the worry and suspicion the people have about the situation tomorrow. They are not sure what sort of new charges may be levied then. However, this ruling by the Supreme Court will help to some extent.</span></p>',
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			'title' => 'Dr Thomas Gass',
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			'content' => '<p>
	<span style="font-size: 14px;"><strong><br />
	</strong></span></p>
<p>
	<span style="font-size:14px;"><strong>The Taxpayers Of This Country Are The Major Donors To Nepal (july 2011)</strong></span></p>
<p>
	<br />
	 </p>
<div style="text-align: justify;">
	<span style="font-size: 12px;"><strong><img align="left" alt="taxpayers" border="1" height="195" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/interview(4).jpg" style="width: 139px; height: 195px;margin:10px;padding:10px;" vspace="5" width="139" />Dr Thomas Gass</strong> is the first residential Ambassador of Switzerland to Nepal. He was previously Switzerland's ambassador to the United Nations in New York and spent five years there prior to arriving in Nepal. He holds a PhD in biology and began his career with the Swiss Agency for Development and Cooperation (SDC) in 1988. He has held positions in the Swiss civil service and with the United Nations. Gass was the Vice-President of the executive board of the United Nations Development Programme and United Nations Population Fund. He has also lived in Guyana and worked in Africa and the former Soviet Union. In an interview with Pinaki Roy of <i>New Business Age</i>, Gass discussed a diverse range of issues from Swiss cooperation and its impact on the Nepali society to the constitution writing process in Nepal. Excerpts:<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><strong>Switzerland is among the few countries that initiated financial assistance to Nepal since 1959. How do you evaluate Swiss cooperation over the last 52 years?<br />
	<br />
	<br />
	</strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">I would say that this has been an extremely fruitful partnership that has encompassed mutual learning and has evolved over the time as any working partnership should. Initially, Switzerland implemented many projects directly and we had up to 100 experts working here at a time in the 1970s. We work differently today as we place more emphasis on the leadership and the coordination of the government and make use of national capacities for our projects here. We work through the ministries, INGOs and the local NGOs among others.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">One of your primary objectives has been to build rural infrastructure, particularly, the suspension bridges. Do you systematically assess the economic impact of these bridges constructed mainly by Swiss support?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">Yes, we do systematically assess the impact of our projects. But we don't assess these projects only in an economic way; we also look at them from a social and inclusion point of view. Over 1,600 trail bridges have been built and 3,500 maintained in the last 10 years. As a result, over 4.8 million people have better access to services through safer river crossings. On an average, each bridge has reduced walking distance by 2.5 hours and about 4 million person-days of employment have been generated through these bridges. These bridges are turnkey projects constructed by the villagers and the community. In the last four years alone, school attendance has risen by 22-27 per cent and visits to health centres have increased by 20 per cent on an average in places close to the newly built bridges. So, these are the kind of evaluations that we have. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">Forestry is a major area that you have been contributing to. However, the Swiss government has diverted its attention from forestry to other areas of late. What could be the possible reasons for this?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">We certainly have invested a great deal of time and resources in forestry and it's true that we have been focusing on some other areas too. However, let me correct you by saying that we are still interested in forestry. We are and will continue to invest in forestry. To give you the figures, we have been supporting the previously-funded forest project since 1991 which will end this year. The project has resulted in reversed deforestation for 185,000 hectares of government-managed forests. It has also improved the condition for 135,000 hectares of community-managed forests in the three districts where SDC [Swiss Development Corporation] has been active. Additionally, increased availability of forest products has contributed to sustainable livelihood of 145,000 families and 16,000 person-days of forest based employment have been generated for the poor. Strong multi-stakeholders mechanism and participation from empowered community groups were crucial while achieving these results.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">We are currently planning and preparing a multi-stakeholder forest programme together with DFID and Finland with the Ministry of Forest and Soil Conservation in a supporting and facilitating role. It will build on our respective experiences and extend its impact to a great number of districts spanning over 10 years. The programme will cover about 60-65 districts of the total 75 districts in Nepal. Therefore, I would say that our presence in the forestry sector is probably more than ever.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">You have tried to link Swiss contribution with entrepreneurship, for example, the employment fund. As a drastic departure, you have chosen to work with private companies as trainers. How successful has the idea been?<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">We have been engaged in vocational skill training since the 1950s with cheese and carpet production. We then moved into more formal vocational training with technical schools such as the one in Balaju.&nbsp;We were also associated with the Technical School in Jiri in the 1980s and the Training Institute for Technical Instruction (TITI) in the 1990s. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">This cooperation changed over the time because many more national capacities were becoming available in the formal training sector. At the same time, we realised that we were reaching only a small number of trainees through formal training who could perhaps afford on their own. We started partnering with private entities as training providers to reach the poorer segment of the society as well. It is easier to target disadvantaged and marginalised groups through our new approach. The onus is now on the training provider to find the first employment for the trainees. We feel that vocational training responds more directly to the needs of the labour market through this approach. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
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<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;"><br />
	The Swiss government was supporting the promotion of good governance. Do you think it has contributed towards transformation of government practices in Nepal?<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">The money that Switzerland invests into its development cooperation with Nepal comes from the Swiss tax payers. It is therefore absolutely essential that we give adequate attention to good governance and fiduciary management of the projects funded by us. And, we hope that it has a positive influence on the communities and the ministries we work with. Like any other country, Nepal requires good governance across the board from the villages to the central government and from the local associations to the major national parties. Our influence is obviously less at these levels. It is the Nepali people that have to hold their politicians and administration accountable for their respective actions. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">On our part, we have promoted and tried to practise public hearings and public accountability for our projects at the local and district levels. We have seen that there are concerns to begin with while we practise accountability. However, all parties are satisfied after the entire exercise is over. The local and district administrations also realise that such practices actually strengthen their credibility. At the same time, the population too gains a lot of confidence. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">You have been working with the same partner, Pro Public, for over 15 years now. How do you justify this association for such a long period of time?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">Yes, we have had a very long cooperation for sure. But one has to acknowledge that Pro Public has a great deal of experience. They have been in the field for a long time and have been in many places so we have to give them credit for that. The current phase of the project with Pro Public is coming to an end this year and we haven't yet decided who will be our future partner. We believe that we need support from an independent organisation that helps the public hand to build up its credibility through public hearing. It does not necessarily have to be advocacy or accusing the administration on its weak points. It is more about building the capacity and confidence to face the public by being transparent. There is a niche for these kinds of activities in every district which makes our projects and the work of the local administration so much more effective.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">Some of your projects like Jiri Multi-Purpose Development Project have been completely abandoned. What should Nepal do to make such projects and development sustainable?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">Well, the question is not about what should Nepal do. It's rather about what should the development partners both Nepali and Foreign do. First, the projects have to respond to a real need in order to be sustainable. They need to respond to the demand by the beneficiaries and these needs may evolve over a period of time because the beneficiaries and their aspirations evolve. Second, the projects also have to be of appropriate size and be constantly adaptive. It is because the counterparts the national entities can take over some of the responsibilities of the projects in a more convincing way. Therefore, these are the two elements that help projects become sustainable. The projects are the tools to deliver certain services that need to continue. </span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">The issue of inclusion is in the forefront of development debate lately. Is this the right approach given that it would further consolidate caste as ethnic identity just to get the&nbsp; </span></strong><strong><span style="font-size: 12px;">desired benefits?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;"><img align="left" alt="thomas" border="1" height="244" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/img1(2).jpg" style="margin: 10px; padding: 10px;" vspace="5" width="400" /></span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">The benefits of social and economic development frequently do not get distributed equitably in societies that are very diverse and strongly compartmentalised. This leads to frustration and conflict. Invariably, there is an accumulation of wealth and power by those who already have it rather by the ones who don't have it. This has been experienced in many countries and it has been experienced in Nepal too.&nbsp;The other problem is that the potential of the diversity of a nation is not unleashed. Imagine a family, village or a country where all the decisions are taken only by men. For example, I can't imagine not involving my wife in decision making. She may have many skills, knowledge and competencies that I lack. The same is true for a country where a single ethnic or linguistic community is controlling all the decisions. This way, you are invariably reducing the development potential of your country to a fraction of what it could be otherwise.&nbsp;</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">Given the climate change, how do you think issues like bio-diversity can be addressed?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">The problem with climate change is that we don't really know the end effect especially in a country like Nepal where there are so many ecological zones. Some places might become drier and others wetter so there could be a lot of fluctuation. The diversity in nature is the insurance policy against change. That's why nature has been created the way it is, with a lot of diversity where one plant may die and another may survive. The diversity has to be maintained in order to adapt to the changes that we don't know about. And therefore, natural bio-diversity and agricultural bio-diversity have to be promoted very actively keeping the climate change in mind. Farmers in Nepal who live in very diverse environments can help maintain and cultivate agricultural bio-diversity that would help the country resist and be more resilient to climate change and its effects. But the community and the country as a whole has to recognise that service. It's not just the food production, it goes beyond that. This is a little complicated&nbsp; it means that you have to start thinking about environmental services by getting the farmers some kind of support that is more than just the minimum payment. <br />
	<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">The Swiss government is the major donor towards supporting constitution writing process but it doesn't seem to have yielded any results. What do you think is the problem with constitution writing in Nepal?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">The taxpayers of this country are the major donors to Nepal. They are the ones who pay the salaries of the parliamentarians and indirectly, the politicians. Therefore, the investment of the international community cannot be compared with the investment of the people of this country in terms of time and resources. Changing the direction and design of a country takes time. It requires a lot of focus and motivation and the need to make compromises. This is in the hands of the Nepali politicians who have to come together for an agreement and then be able to share their findings with the general population at large to achieve a consensus. The current generation of the politicians owe this to the country. The constitution in my country also took a long time. We can be here as friends, nudging and criticising but in a constructive and positive way. We certainly hope that the constitution writing process in Nepal will now move forward. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">Many people think that Swiss federalism model is appropriate for Nepal. How do you view this idea?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">I strongly believe that Nepal needs to find its own model. What I can say though is that Swiss federalism is not about autonomy and independence. It is about how our cantons (provinces in your case) can work together building on reciprocal strengths and diversity to work in a united way for a stronger country. That requires a lot of compromises. One can never see one's own problems only. The provinces in my country need each other and I assume that it would be the same in Nepal. The policy makers can have a positive bias towards their own provinces. Previously, anyone who had a vision and was ambitious for Nepal focused on Kathmandu. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 12px;"><span style="line-height: 115%;">In the future, the people would like to be identified by their respective regions and will be looking for strengths and resource development of their own provinces. The sense of pride for belonging to a certain province will come into play which was not there earlier. It helps but you can never lose out of perspective that a province is not viable by itself and requires to be complemented by other provinces. Therefore, everyone needs to understand that Nepal, as a single entity, needs to establish credibility at the international level. <br />
	<br />
	<br />
	<br />
	</span></span></div>',
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			'created' => '2011-08-22',
			'modified' => '2012-09-16',
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			'description' => 'Dr Thomas Gass is the first residential Ambassador of Switzerland to Nepal. He was previously Switzerland's ambassador to the United Nations in New York and spent five years there prior to arriving in Nepal.',
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	(int) 1 => array(
		'Article' => array(
			'id' => '387',
			'article_category_id' => '48',
			'title' => 'Changing Face Of Crisis (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="color: rgb(178, 34, 34);"><i><span style="font-size: 8pt; line-height: 120%;"><img align="left" alt="madan" border="1" height="108" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/img2(3).jpg" style="width: 90px; height: 108px;margin:10px;padding:10px;" vspace="5" width="90" />By Madan Lamsal<br />
	<br />
	<br />
	</span></i></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 10.5pt;">T</span><span style="font-size: 9.5pt;">hese days, if you encounter any crestfallen wo/man with faded pulchritude and desperate to reach somewhere sooner, s/he could easily be a banker. With the collapse of BFIs in a row, even the CEO of healthiest of these institutions is sacred to the hilt. Simply because, before one could explain the robustness of his or her institutions, things are seen going out of hand of these expert managers.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<br />
	<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;">Except those under the government raincoat, almost all BFIs are feeling the pinch of acid-rain, some term it liquidity- and others lucre-dity-driven crisis. And every crisis is a god-sent lottery to some, and so called older and large banks are now enjoying the unprecedented deposit flow when their smaller and younger fellows gasp for life.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<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 lifestyle, personality and approach of the CEOs of many of these BFIs have completely changed. They have ceased to wear tie. Harrods tweed has been replaced by Bangkok boutique. Razor sharp creases of the dress have disappeared and, instead of driving individual cars, many senior executives of an institution are seen stacked in single vehicle. They are not doing it for their security by feigning move-incognito, but all of them are putting these sincere efforts to support the Nepal Rastra Bank Governor's objectives to bring down the national inflation to a single digit. In cocktails, they hardly speak. Even if they do, they just mew. Their eyes are anxious not to bump with any guy from Baluwatar, by chance. Who knows, a prestigious banker today may be arrested by the police on the criminal charges of elbowing a central banker in a cocktail party?</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<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="laughing" border="1" height="248" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/img(5).jpg" style="margin:10px;padding:10px;" vspace="5" width="350" />Early in the morning, these CEOs dread to read the newspapers. They feel the unusual urge to pee while reading the news about the rampage and killings by wild elephants in the districts like Jhapa. They hallucinate that snores and roars of the Jhapali animals is also coming out of the Baluwatar woods, perhaps without knowing the Jhapa influence in the present day Nepali financial sector. Some CEOs are also scared that, regardless of the financial credentials of their institution, they would be chased by one powerful Jhapali to apparently to install another Jhapali in the CEOs position, in addition to a couple of peripheral advisors to add the operational cost of the purportedly crumbling institution. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">But there are more than one solutions to these woes of poor CEOs. First, they must confess that they didnâ€™t know any previous governor or deputy governor of the central bank to vindicate an unflinching loyalty to the present central bank leadership. Second, even if they knew some, they continuously profess that all former Rastra Bank officials including the governor were unprofessional, unqualified and dirty people; and responsible for present mess in the financial system. Also remember to communicate your allegiance to the party that made history by launching the Jhapa andolan. And, donâ€™t commit foolish mistake of visiting new bungalow of the governor worth crores as that may prove something else to his principled credentials as a true proletariat. These tips will surely help you if not your institution.<br />
	<br />
	<br />
	<br />
	</span></div>',
			'published' => true,
			'created' => '2011-08-22',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'These days, if you encounter any crestfallen wo/man with faded pulchritude and desperate to reach somewhere sooner, s/he could easily be a banker. With the collapse of BFIs in a.....',
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	(int) 2 => array(
		'Article' => array(
			'id' => '386',
			'article_category_id' => '47',
			'title' => 'Spirituality In Heart, Business In Mind',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="color:#000;"><span style="font-size: 12px;"><img align="left" alt="suresh" border="3" height="334" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/suresh_kumar_basnet.jpg" style="width: 269px; height: 334px;margin:10px;padding:10px;" vspace="2" width="269" /></span></span></div>
<div style="text-align: justify;">
	<span style="color:#000;"><span style="font-size: 12px;">Suresh Kumar Basnet began his business with the belief that if one has the capacity and acumen for marketing, one can sell just anything. From a budding businessman in 1979 to NCC president today, he has seen success and knows it does not come easy.<br />
	<br />
	</span></span></div>
<div align="center" style="text-align: center; text-indent: 0in;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
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<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><b><span style="line-height: 120%;">Suresh Kumar Basnet</span></b></span></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><span style="line-height: 120%;">President</span></span></span></div>
<div>
	<span style="color:#000;"><span style="font-size: 12px;"><span style="line-height: 115%;">Nepal Chamber of Commerce (NCC)</span></span></span></div>
<div>
	<span style="color:#000;"><span style="font-size: 12px;"><br />
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	</span></span></div>
<div style="text-indent: 0in;">
	<span style="color:#000;"><span style="font-size: 12px;"><strong><i>By </i>Gaurav Aryal<br />
	<br />
	</strong></span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">Suresh Kumar Basnet stepped into the world of business with Rs 7,000 back in 1979. For Basnet, that was a big money managed all by himself to start his business. At that time, he saw demand for fancy clothes, watches, photography equipment, typewriters in the cities of the plain like Bhairahawa, Biratnagar and other places. I supplied those goods from the wholesalers in Kathmandu to these cities,he shares the story behind the inception of his business and career. Basnet gained experience and knowledge about his business with time from the people in his fraternity. He was not hesitant to shift to those goods and businesses that offered lucrative returns.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
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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="color:#000;"><span style="font-size: 12px;">Today, Basnet is the President of Nepal Chamber of Commerce (NCC), the guardian association of Nepali industries as well as small, medium and large companies. Basnet has been in NCC for 18 years now. Beginning with the working committee member, he has climbed the ladder to the apex position. Apart from the NCC President , he is a business person heading a group of companies with interests in export and production of pashmina, textile, silver jewellery, handicraft, copper goods, gold-plated statues, carpets and mineral water among others.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
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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="color:#000;"><span style="font-size: 12px;">At present, he directly owns a range of business enterprises including Basnyat Company Limited, Sujit Concern and Brothers, Om Shanti Pashmina Udyog and Jal Pure Drinking Water and Beverage Industry. He is also involved with Kathmandu Upatyaka Khanepani Limited (KUKL) and Sunrise Bank in different capacities.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
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<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><strong>Early Life<br />
	<br />
	</strong></span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">Basnet was born in Kathmandu in 1955. His family was a working class family. It was around 1960 that his family bought a piece of land in Chitwan. Young Basnet shifted to Chitwan in 1962 where he completed his school education. We had an extended family and since we were financially weak we decided to shift to Chitwan, Basnet clarifies. He adds, There I learnt to be a hard-working man. I took to farming, did household chores and saw myself being shifted from one place to another with the passage of time. He emotionally says that in Chitwan he could realise what the hardship is and what the joys are the two realities of life.<br />
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	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">Basnet proudly claims that in his student days, he was quite a good student. Apart from his studies, he was fond of playing football, volleyball, badminton and chess. He was counted as one of the best players of the district those days.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">After graduating the School Leaving Certificate, he came back to Kathmandu with a dream of becoming a doctor. To pursue his dream, he joined Amrit Science Campus. However he was forced to take up physics as he could not study Biology in his high school in the absence of a biology teacher. Basnet largely relied on lectures as books were so rare and expensive those days. He recalls how he had to wait for months for a book in the college library. During his exam time, his fate took a different turn. He fainted while appearing for his exams. I had to leave my studies for around six months because of my illness. When I returned to college, my principal said that I have missed the course and asked me to start afresh next year,Basnet says. Meanwhile, his relatives advised him to change the subject and&nbsp;study commerce rather than waiting for the next session.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><img align="right" alt="" border="3" height="565" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/suresh_kumar_basnet1.jpg" style="margin:10px;padding:10px;" vspace="2" width="350" />Basnet quietly obeyed them and joined Public Youth Campus where he completed his ICom. He later completed his graduation from Shankardev Campus in business studies. While pursuing his business studies, Basnet somewhere felt that he should polish his entrepreneur skills and start doing something on his own.I established a firm for import-export, he shares his early days. Basnet picked up business fundamentals from his brother's friend who ran a company in Putalisadak. Basnet was around 26 when he started his business. A lot of hard work in the years that followed earned me vital business contacts that helped me in my export-import business, he reveals. At that time Basnet used to deal with the third-country goods but he claims he never dealt with cheap goods from Khasa, China. He opened an LC account to make his export-import business a formal one.&nbsp;Basnet usually dealt in items with seasonal demands like dry fruits and readymade garments during major festivals like Dashain and Tihar. Apart from that he also tried dealing with photography goods, motor parts, ball bearings and later on even in vehicles. He admits that often he had to bear losses for not having enough experience and expertise. He adds, I thought of getting into industries. I was into garments, carpet, and pashmina. In the pashmina business, I incurred losses as well as made profits over the years His markets for these products were Japan, Korea and USA. He shares, I gained experience by doing the things. I learnt the nitty-gritty of business and kept on reworking on my strategies. I always received support from my family. My better-half is just like my business partner.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">Basnet has passed three decades in the business world. He thinks profit and loss are defined by the nature of business, time and environment, politics, dedication to work and a touch of luck. Sometimes despite hard work, enough investment and favourable time, some circumstances and luck may lead to failure,Basnet opines. Apart from profit and loss, business has taught me honesty, duty to pay taxes to the state, and to have patience and take risk, he says.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">Today Basnet has stopped importing and focuses only on export. I am looking for ways to export our products to other countries. I am targeting the US market though recession has bruised&nbsp;its demands. However, I have not stopped exporting pashmina, silver jewellery, handicraft, copper goods, small statues and carpets, he expresses determination. Basnet is looking forward to investing in hydroelectricity too. I am also searching for feasible products that can be produced with local raw materials and which has the market prospect within Nepal like dairy products,he adds.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">When he began his business, Basnet managed the investment from his own sources but today he feels the presence of commercial banks has eased financing for any project. About managing capital, he says he revolves the fund between industries and companies as and when required.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">About managing his companies, Basnet says that management works are done by dedicated staff and managers of the respective departments are given full authority. He says he does not interfere in their work&nbsp;except for some monitoring and policy guidelines. However, Basnet thinks the investor also has to play the role of a manager.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">Basnet believes in having friendly relationship with employees. After working for a long time, some sense of brotherhood develops among the staff,he opines. He says employees salary is based on the ratio of profit made by the company but he ensures that people working in his companies are well taken care of in all respects including financial distress.We respect honesty, dedication and hard work of employees so that they can develop a sense of ownership towards their workplace.</span></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><strong>Family Life<br />
	<br />
	</strong></span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">Basnet feels that he struggled throughout his life alone. His sons have always stayed away from home either for their studies or for their job. But we always have a cordial relationship with each other. I have given time to my family as much as possible. Previously, we used to spend quality time together at least once a month and every winter we used to visit some places within Nepal, he revealed the way he takes out time for his family. He thinks giving time to family means giving time to self also.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">He is satisfied with what he has achieved so far and has nothing to regret. At the end of the day, experience that he gathered maters to him much than the the status of profit and loss accounts. As any other human being, I also thought of making money but for that I never compromised with the business ethics, he proudly says. I never lied or cheated anybody and I always paid back the loans borrowed from the banks. That gives me immense satisfaction when I look back at my career.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">The malpractice in the name of unions that is going around is something that worries him. Basnet believes that professional working environment should not be unionised or politicised.<br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><strong>Spirituality<br />
	<br />
	</strong></span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">For the last 17 years, he has immersed himself into spiritual contemplation. He says, There is only one truth that is our soul and God. What we see with our eyes is nothing but illusion. Every morning, he meditates and ponders over spirituality for two hours. Basnet claims that NCC is also a kind of social organisation that has spent 58 years for the welfare of small, big and medium industries without any greed. He is also involved with a religious institution. I participate in some spiritual activities as religion is an integral part of our culture. My aim is to interact with the soul. I think our physical body is just like a mirage in the desert or the rope seen as a snake in dim light, he becomes saintly. </span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">In his free time, Basnet likes to visit Chitwan and indulges in prayer sessions. I know that exercise is needed to keep myself healthy but I have not been successful to manage time for it. But I do light exercises related to breathing and limbs every day for around half an hour, he revealed. I have some health problems but due to my spiritual inclination, they have not caused many problems to me, he claimed. Apart from that, he likes reading spiritual books, economic news and articles, occasionally watch family and social movies and TV channels like Discovery, National Geographic that air new and interesting things. He admits that he spends more time in spiritual contemplation. He feels his body has grown too old to indulge in any sports now.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="text-align: justify;">
	<span style="color:#000;"><span style="font-size: 12px;"><span style="line-height: 115%;">Basnet is thinking of taking retirement at the age of around 64 but he is not fanciful about his life after retirement. He does not dream of visiting new places, go swimming or golfing. He plans to immerse in his quest for spirituality. My philosophy is that being a human being, we are meant to find out who we are. So, I will also try to internalise the self, he declares.</span></span></span></div>
<div>
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	<br />
	</span></span></div>
<div>
	<span style="color:#000;"><span style="font-size: 12px;"><strong>Personal Side<br />
	</strong></span></span></div>
<ul>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Loves wearing comfortable clothes that matches the personality</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Believes in brand of intellect than the brand of clothes</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Meditates for at least 45 minutes to two hours every morning </span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Loves listening to hymns</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Likes reading spiritual books</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Occasionally watches movies</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Adores interesting programs aired on Discovery, National Geographic and Animal Planet</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;"><span style="line-height: 115%;">&nbsp;&nbsp; Spiritual by heart<br />
		<br />
		</span></span></span></li>
</ul>',
			'published' => true,
			'created' => '2011-08-10',
			'modified' => '2012-09-17',
			'keywords' => '',
			'description' => 'Suresh Kumar Basnet began his business with the belief that if one has the capacity and acumen for marketing, one can sell just anything. From a budding businessman in 1979 to NCC president today......',
			'sortorder' => '302',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
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	),
	(int) 3 => array(
		'Article' => array(
			'id' => '385',
			'article_category_id' => '52',
			'title' => 'A Volte-face On Hydropower Development July 2011',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">I</span><span style="font-size: 9.5pt;">n the mid-June, Employees Provident Fund (EPF) announced its plan to invest Rs 15.5 billion for four medium-scale hydro-power projects. These projects included 100 megawatt Rasuwagadhi, 120 MW mid-Bhotekoshi, 14.6 MW upper-Syangden and 42.5 Syangden hydropower. All these projects are constructed by Chilime Hydropower Company at the cost of Rs 32.11 billion. The EPF commitment is almost half of the estimated cost. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<span style="font-size: 9.5pt;">In another development, government began its exercise to establish Hydropower Development and Investment Company, so far the largest development bank in Nepal for the purpose. This new company aims to generate at least Rs 20 billion as equity, mainly from the government and the public sector enterprises (PSEs), again, from the like of EPF.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<span style="font-size: 9.5pt;">There is no denying the fact that the country is in desperate need of resources to develop the hydropower, the sooner the better. And, also, Nepal must develop adequate hydropower projects not only to meet its ever growing energy needs but also to harness the water power that is available in abundance within the country.<br />
	<br />
	<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: 9.5pt;"><img alt="fromtheeditor" border="1" height="386" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/1.jpg" style="margin:10px;padding:10px;" vspace="10" width="350" /></span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<br />
	<span style="font-size: 9.5pt;">But, these needs do not necessarily justify the recent government adventurism to manage resources for its development. Both, the EPF investment and setting-up of a new bank has two things in common. One, the government</span><span style="font-size: 9.5pt;">is only looking into the option of government-guided development of the sector. It is also because the EPF investment cannot be termed anything else as it is the fully government owned pension fund with almost monopoly in the market. And the proposed new entity has also proposed to incorporate rich PSEs alone. Second, in both the processes, possible involvement, participation and investment of the private sector have been completely ignored. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<span style="font-size: 9.5pt;">This is exactly the unbecoming for Nepal's hydropower development. On the one hand, there is already a debate on what degree of flexibility the EPF and the like PSEs should enjoy in diversifying its investment portfolio. And on the other, the question is if such collusion of government agencies (as Chilime is also government undertaking) alone could actually contribute to the hydropower development and solve the country's energy crisis.<br />
	<br />
	More serious issues surround the proposed new investment bank. Since it has precluded the private sector since its conceptualisation, its proposed Rs 20 billion equity funding is sure to prove too little to meet the financial resource demand for hydropower development. This amount is only enough to develop 100 to 150 MW of power at the most. Besides, this entity cannot be envisaged to take-up the retail banking to mobilise additional resources. At best, the resource gathered by this bank could be mobilised by other PSEs like Nepal Electricity Authority, nothing more.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	 </div>
<div>
	<span style="font-size: 9.5pt; line-height: 115%;">The only right course in this regard would have been the private sector leadership in investment, development and management of<i> all</i> hydropower projects. The government surely could have facilitated with policy and resources instruments it had. But, now things seem to be moving in completely opposite direction. And, the money dammed in by the government authorities might not be able to flow down so as to generate power, at least not in substantial scale and sustainable way. <br />
	<br />
	<br />
	</span></div>',
			'published' => true,
			'created' => '2011-08-10',
			'modified' => '2012-08-31',
			'keywords' => '',
			'description' => 'In the mid-June, Employees Provident Fund (EPF) announced its plan to invest Rs 15.5 billion for four medium-scale hydro-power projects. These projects included 100 megawatt.......',
			'sortorder' => '301',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
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			'user_id' => '0'
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	),
	(int) 4 => array(
		'Article' => array(
			'id' => '384',
			'article_category_id' => '34',
			'title' => 'CPVC Pipes From Panchakanya Plast(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">P</span><span style="font-size: 9.5pt;">anchakanya Plast Pvt Ltd, a Panchakanya Group company is introducing Chlorinated Poly Vinyl Chloride (CPVC) Pipes in the market soon. Harka Bahadur Thapamagar, the Sales Manager of the company said that the company has already begun the production of these pipes. â€œThe manufacturing of mould needed for making the pipes is in the process and we will launch our product within a month,â€ he said. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </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;">According to Thapamagar, CPVC pipes are better alternatives to GI pipes for drinking water supply as the former are rust free and lightwieight to transport to remote locations. Panchakanya Plast has its factory near Bhairahawa.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Thapamagar claimed that Panchakanya is the first company to produce CPVC pipes in Nepal. These pipes are appropriate to use with both hot and cold water and can last up to 50 years. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
<div style="text-align: justify;">
	Â </div>
<div style="text-align: center; text-indent: 0in;">
	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">LIC (Nepal) Implements RDBMS</span></strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="">L</span><span style="font-size: 9.5pt;">ife insurance Corporation (Nepal) Ltd has gone a step further in its IT initiatives by introducing web-based policy administration system, states a press release of the company. In 2008, LIC (Nepal) became the first Life Insurance Company to network all its branches across Nepal, enabling effective inter-branch communication system. By using RDBMS (Relational Data Base Management Systems) with the web-based front end architecture now, the company has achieved centralisation of its database, adds the press release promising that the new development will make servicing more effective, ensure real time transaction updation and also allow remote users to have access to latest data. This will also enable the company in the near future to provide online payment facility and 24x7 services to its customers, it adds.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </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 entire package has been developed in-house by the LIC of India using the latest technologies in the market and is very user friendly, according to the company. The package will also have the feature of maintaining customer ID to provide services to all the policies of one customer in a single window.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">The module came into operation from 5th May 2011. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
<div style="text-align: justify;">
	Â </div>
<div style="text-align: center; text-indent: 0in;">
	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">New Industries in Patan Industrial Estate</span></strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">hree new industrial units are being established in Patan Industrial Estate (PIE). The new units are added are Shakti Food Pvt Ltd, Siddhilaxmi Plastic Industry and Nepal Commercial Industry. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </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;">Prem Nepal, the Manager of Patan Industrial Estate said that two other industrial units are planning to expand capacity while another one plans to revive its operation.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </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;">Siddhilaxmi is investing Rs 10 million while Rs 100 million is being invested in Shakti Food.&nbsp;Nepal Commercialâ€™s investment has not been finalised yet, according to Pushkar Paudel, the Manager of the company which is currently the authorised distributor of Indian furniture brand â€˜Godrejâ€™ in Nepal. The PIE plant of Nepal Commercial will be assembling furniture. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </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;">Shakti Food plans to introduce â€˜Martinâ€™ brand of ice-cream in the market and will have a daily production capacity of 20,000 litres. Besides ice-creams, it will also produce other dairy products.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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	<span style="font-size: 9.5pt; line-height: 115%;">Shakti Shrestha, the operator of Siddhilaxmi Plastic industry informed it will start producing plastic bottles within the next couple of months. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Infrastructure Bonds in USD </span></strong></span></div>
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	<span style="font-size: 12pt;">N</span><span style="font-size: 9.5pt;">epal Rastra Bank (NRB) is mooting a policy to allow purchase of big infrastructure project bonds by paying US dollars. The NRB has begun internal discussions for formulating such policy so as to attract foreign investment in big projects. A source at the NRB revealed that the policy is being prepared to attract foreign investments in hydroelectricity and other big projects.</span></div>
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	<span style="font-size: 9.5pt;">People who buy such bonds by paying US dollars will get the interest in US dollars. Similarly, the principal amount too will be returned upon maturity in US dollars. </span></div>
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	<span style="font-size: 9.5pt;">With this policy, also the foreigners can buy bonds issued by Nepal. But some legal formalities have to completed before such bonds can be issued. For example, the existing law has to be amended, said a source in the NRB. </span></div>
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	<span style="font-size: 9.5pt;">These bonds can be bought also by the NRNs, companies and persons having regular income in US dollars. However, the NRB will be barred, according to the surce, from buying such bonds though it is allowed to buy foreign bonds with the foreign currency reserve it holds. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The big infrastructure projects that require huge capital can issue such bonds through merchant banks, according to the proposal.&nbsp;A number of the promoters of large projects have asked the NRB for a provision to allow foreign investors buy their bonds due to the scarcity of capital within the country to invest in such big projects. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Minimum Wage Controversy </span></strong></span></div>
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	<span style="font-size: 13pt;">T</span><span style="font-size: 9.5pt;">he Ministry of Labour and Transport Management has unilaterally fixed the minimum wage amidst opposition from Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and three major trade unions.</span></div>
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	<span style="font-size: 9.5pt;">Krishna Hari Pushkar, the spokesperson at the ministry said the minimum wage was fixed considering two previous agreements made on March 24 and April 15. He said, â€œMinimum wage has been fixed taking into consideration the concerns of both employers and employees.â€</span></div>
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	<span style="font-size: 9.5pt;">The minimum wage has been increased from Rs 4,600 to Rs 6,200. Similarly, the daily wage has been increased from Rs 190 to Rs 231. </span></div>
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	<span style="font-size: 9.5pt;">Pashupati Murarka, the Vice President of FNCCI said the employers wonâ€™t agree to any agreement published in Nepal Gazette that goes against the one made on March 24. He alleged that the notice was published in the gazette without consulting the employers. </span></div>
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	<span style="font-size: 9.5pt;">An official at the FNCCI alleged that the minimum wage has been fixed as per the demand of Madhesi trade unions since the Labour Minister represents the Madhesi Jana Adhikar Forum.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Bishnu Rimal, the President of General Federation of Nepalese Trade Unions (GEFONT) said that new agreements should not be implemented before dismissing the old ones. He said that they are currently following the agreement made on March 24. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Bluebird Mart Inaugurated</span></strong></span></div>
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	<span style="font-size: 15pt;">B</span>luebird Shopping Complex has come to operation in a changed form. Now called&nbsp;Bluebird Mart, it has added a new departmental store and two world-renowned chain restaurants. The Mart was inaugurated on May 17 by Miss Nepal Sadikshya Shrestha. KFC and Pizza Hut restaurants are scheduled to open soon, according to Binod Tuladhar, the Managing Director of Bluebird Mall.</div>
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	He also informed that the Yellow Chilly, an Indian chain restaurant will also be added to the property later. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Five-star Hotels Register 80 per cent Occupancy </span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;"><span style="font-size: 14px;">h</span>e occupancy rate of the five-star hotels in the first four months of Nepal Tourism Year (NTY) 2011 has touched 80 per cent. Raju Bikram Shah, the Senior General Manager of Hotel Shangri-La said, â€œHotel occupancy in the first four months of this year has increased by 10 per cent when compared with the same period last year.â€ </span></div>
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	<span style="font-size: 9.5pt;">With the mountaineering season picking up momentum, some hotels have registered more than 80 per cent occupancy for April. However, Shah said the hotels should have 100 per cent occupancy due to NTY programmes. Encouraged by the positive response for the first four months, hotel entrepreneurs are hopeful that occupancy will remain high in the coming months as well.</span></div>
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	<span style="font-size: 9.5pt;">According to Bharat Joshi, the Marketing Director of Hotel Yak and Yeti, the occupancy rate increased with the trekking and mountaineering season. Hotel entrepreneurs further expect growth in tourist arrivals with the advent of pilgrimage season for Kailash-Mansarobar.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">In April, Hotel Shangrila had 87 percent occupancy, while Hotel Yak and Yeti had 79 percent, Hotel Soaltee 78 percent and Hotel Fulbari around 80 per cent. Five-star hotels claim the tourist flow increased because of their promotional efforts in the international market. They added that they spend Rs 400 million annually for overseas tourism promotion.&nbsp;</span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">NTBâ€™s â€˜Border City Sales Missionâ€™ </span></strong></span></div>
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	<span style="font-size: 14px;">N</span>epal Tourism Board (NTB) has begun a tourism promotion campaign â€˜Border City Sales Missionâ€™ in the Indina cities close to the Nepal border. According to NTB, sales mission has been started in Indian cities of Kanpur, Varanasi and Lucknow. Lila Bahadur Bania, a Manager in the NTB said that the campaign was started as the Indian tourists were not coming to Nepal in large numbers. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Petroleum Import Exceeds Total Export </span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he revenue generated from Nepalâ€™s export cannot even buy petroleum products required for the country, according to the recent trade data. Nepal exported goods worth Rs 47.98 billion by mid-April of the current fiscal year while the country spent Rs 50.26 billion for importing petroleum products during the same period, show the data released by the countryâ€™s trade monitoring body Trade and Export Promotion Centre (TEPC). </span></div>
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	<span style="font-size: 9.5pt;">By mid-April of last fiscal year, petroleum imports were worth Rs 35.22 billion.</span></div>
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	<span style="font-size: 9.5pt;">Nepal had to spend more for petroleum products due to two reasons. One was the unrest in the Middle-East that led to an increase in price of the petroleum in the world market. Second was the increase in the demand within the country due to lengthened power outage due to failure to increase power generation from the countryâ€™s hydropower plants. </span></div>
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	<span style="font-size: 9.5pt;">In the same period of the current fiscal year, Nepal has imported goods worth Rs 287 billion. So, Nepalâ€™s trade deficit has reached Rs 239 billion in the first nine months of the current fiscal year, according to TEPC.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Even though the imports of petroleum products and iron and steel have increased, there is a decrease in the import of machineries, electronics, vehicle spare parts and gold. In the first nine months of the last fiscal year, gold worth Rs 24.61 billion was imported but it has decreased to Rs 4.62 billion this year, a decline of 87.7 per cent. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>',
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			'description' => 'Panchakanya Plast Pvt Ltd, a Panchakanya Group company is introducing Chlorinated Poly Vinyl Chloride (CPVC) Pipes in the market soon. Harka Bahadur Thapamagar, the Sales Manager of the company said......',
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			'id' => '383',
			'article_category_id' => '34',
			'title' => 'EU Ban Affects Ayurved Export(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">epalâ€™s export of Ayurvedic medicines to Europe has declined following a ban on their import by European Union (EU) effective from May 1 citing public health risk. </span></div>
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	<span style="font-size: 9.5pt;">Dr Rishiram Koirala, the President of Ayurvedic Doctorsâ€™ Association-Nepal (ADAN) said the ban has proved really bad as it came exactly when the export of Nepali Ayurvedic medicines was on the rise. He complained that the EU ban also affected export to other countries. Koirala claimed that the ban was imposed to promote internal production of EU,not due to any threat to health.<br />
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	<span style="font-size: 9.5pt; line-height: 115%;">Toya Narayan Gyawali, the General Secretary (Check â€¦. As there can be no such post as Gen Sec In a Ministry) at the Ministry of Commerce and Supplies said the government has not received any formal notice on the restriction. He said, â€œIf the restriction has indeed been imposed, we will try to solve the problem as soon as we receive a formal notification.â€ Prior to the ban, there was growing demand of ayurvedic medicines in eight countries including Austria and Sweden. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Rinchen Teaching Hospital in Dang</span></strong></span></div>
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	<span style="font-size: 14px;">C</span><span style="font-size: 9.5pt;">onstruction is going on for Rinchen Teaching Hospital at Sisahania of Dang with an investment of Rs 8 billion. According to the executive committee of the hospital, the initial phase of work has been completed. Gopal Prasad Bhusal, the Chairman of the committee claimed the hospital would be one-of-its-kind among the non-profit hospitals in Nepal.</span></div>
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	<span style="font-size: 9.5pt;">For the first phase, Rs 60 million was allocated while Bhusal said Rs 150 million may be required for designing and other works in the second phase. â€œIn the third phase, the entire physical construction would be completed at an investment of Rs 6 billion,â€ said Bhusal. Another Rs 2 billion will be invested to make the hospital operational. Out of the total investment, Rs 200 million will be invested for information technology.</span></div>
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	<span style="font-size: 9.5pt;">Between 60 to 80 percent of the total cost will be financed by Ranag Tulku Rinchen Rinpoche, the Protector of the hospital, informed executive committee member Tilak Bhandari. The rest of the cost is to be financed from the government, local bodies and local donors, he added. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">According to Bhusal, the 700 bed-hospital plans to operate also air ambulance service in the future. The hospital will educate 100 MBBS, 50 MD, 200 BSC and 200 Nursing students every year. It will also conduct academic classes on meditation, yoga and spiritual knowledge. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">NRBâ€™s Forced Merger By-laws</span></strong></span></div>
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	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">epal Rastra Bank (NRB) has issued a merger by-law that allows NRB to order a bank and financial institutions (BFIs) to merge if it is found weak in its vital indicators. The by-law also offers a number of incentives to encourage mergers, said Bhaskar Mani Gyawali, the NRB Spokesperson.</span></div>
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	<span style="font-size: 9.5pt;">The BFIs opting for mergers will be waived off several conditionalitis related to upgradation and operational area expansion. The by-laws also relax the provision on mandatory â€˜complete three yearâ€™ rule in adding number of branches in the districts allowed to operate. </span></div>
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	<span style="font-size: 9.5pt;">The new regulation incorporates the provision of forceful merger, allowing the central bank to instruct two or more BFIs to merge if it deems appropriate. Similarly, the new rule has pledged relaxation on capital structure, shareholding limit for promoters, credit-deposit ratio, borrowing limit for promoters and deprived sector lending, among others.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The central bank can instruct or suggest BFIs to merge if representatives of the same group, firm or company are found holding positions in the board of directors of more than one BFIs. It can also do so if the BFIsâ€™ non-performing loans exceed five per cent of the total loan portfolio for three consecutive years and if the BFIsâ€™ independent operations are causing negative impact on the banking system. The NRB can also ask those&nbsp;BFIs to merge to which the central bank has taken three corrective actions in a row or even in a case where it thinks the merger would strengthen the overall banking system. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Ncell Reduces 3G Tariff</span></strong></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">P</span></span><span style="letter-spacing: 0.15pt;">rivate sector telecom operator Ncell has come up with a new scheme with reduced tariff for high-speed 3G Internet. Under the scheme, the company offers 500 Mb data for Rs 399 (or 80 paisa per Mb) down from earlier Rs 499. Similarly, 1000 Mb is now priced at Rs 699 (or 70 paisa per Mb). The Internet users not subscribing to the new packages will have to pay Rs 2 per Mb. </span><span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Banksâ€™ Hydropower Investment Reach Rs 16 billion </span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he investment of Nepali Banks and Financial Institutions (BFIs) in hydro electricity projects has reached almost Rs 16 billion during the period of the last decade. Chilime Hydropower under the Public-Private Partnership model is the first project to have investment from Nepali banks. Himalayan Bank led the consortium of bankers to invest in this project. However, Indrawati is the first hydropower project promoted entirely by the private sector to receive bank investment.</span></div>
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	<span style="font-size: 9.5pt;">Among the other projects with bank finance are Piluwa, Sunkoshi and Sanima Mai. While the former two are small projects, Sanima Mai is relatively big with 15.6 MW and it has investment from a consortium of 11 BFIs. Until now, the BFIs have invested in this sector only through consortium.</span></div>
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	<span style="font-size: 9.5pt;">So far, a total of 21 banks and finance companies have invested in hydroelectricity projects. Clean Energy Development Bank and Jyoti Development Bank say they are specialised in investing in the energy sector and thus increase investment in this sector in the future.&nbsp;</span></div>
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	<span style="font-size: 9.5pt;">However, the investment of banks in hydroelectricity is a mere four per cent of the total deposits of the commercial banks. Recently, Nepal Rastra Bank changed the rule and allowed BFIs to invest up to 30 per cent of their loan outstanding in hydropower projects. Because the investment in this sector from the banks is very low compared to what they are allowed to, the private sector energy entrepreneurs have started arguing for fixing a minimum amount that the BFIs must invest in this sector. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Bankers say they are reluctant to invest in energy as it requires long gestation period and the returns are comparatively higher in other sectors. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Registration of Hydropower Companies Made Easy</span></strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he Indistrial Promotion Board under the Ministry of Industry has changed the company registration rule for potential hydropower developer. According to the change, the the company registration for hydropower development is divided into two phases, says a souyrce at the Ministry of Industry. </span></div>
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	<span style="font-size: 9.5pt;">With this there is no capital requirement specified for the company that wants to just conduct the feasibility study on the proposed project. But once the company completes the feasibility study and wants to develop the project, it must have its authorised capital at least Rs. 100 million per megawatt of the generation capacity of the proposed project. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The earlier provision required the company to have at least Rs. 100 million as authorised capital even while asking for the permission to conduct feasibility study. This had restrained many developers as they have to pay a high amount as the company registration fee. The Registrar of Companies charges higher registration fee for higher capital. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Cash Rich Govt Institutions asked to Buy Shares in Listed Companies</span></strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he high-level financial sector reforms coordination committee has decided to issue directives to state-owned institutions to buy shares of companies listed in the stock echange. Dr Surbir Paudyal, a Member of the committee and Chairperson of the Securities Board of Nepal (SEBON) said, â€œA decision has been made to allow Employees Provident Fund and Citizens Investment Trust to invest in the shares of companies listed in the stock exchange.â€</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;">It has also been decided to review the policy on loan from the banks against the security of share certificates and to explore ways to reduce cost of investment in shares. The major costs of investment in shares includeinterest on loan against the security of share certificates, share brokersâ€™ commission, capital gains tax and charges levied by Nepal Stock Exchange.</span></div>
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	<span style="font-size: 9.5pt;">Under the existing policy, the banks are allowed to lend against the security of share cerrificates up to the amount of 60 per cent of the market value of the share and they have to make a margin call when the market price of the share so received as security falls more than 10 per cent.</span></div>
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">The meeting also decided to immediately begin induction of new brokers, start operation of mutual fund and establish credit rating agency. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>',
			'published' => true,
			'created' => '2011-08-08',
			'modified' => '0000-00-00',
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			'description' => 'Nepalâ€™s export of Ayurvedic medicines to Europe has declined following a ban on their import by European Union (EU) effective from May 1 citing public health risk.',
			'sortorder' => '299',
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	(int) 6 => array(
		'Article' => array(
			'id' => '382',
			'article_category_id' => '34',
			'title' => 'Korean Company Sells Stake In Himalayas Spring Water(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;">T</span>The Korean Company that owns Himalayas Spring Water situated in Rasuwa has decided to sell half of its shares for Rs 200 million to Muktishree Pvt Ltd, a Nepali company.â€œThe Korean Company has now decided to have a separate Nepali company as its strategic partner,â€ informed Ganga Dhital, the General Manager of the company.</div>
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	Though the decision has been made already, the formal transfer of shares is yet to materialise. The Department of Industry has also given its approval for the transfer of ownership. After the approval from the Office of the Company Registrar and Nepal Rastra Bank, the Korean company will get Rs 200 million from the buyers. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">New Model for Monetary Survey </span></strong></span></div>
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	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">epal Rastra Bank (NRB) is planning to carry out a monetary survey with a new and updated framework which is under preparation at present. An official at the NRB said the old framework is limited to a few commercial banks in its coverage as it was developed when the number of banks and financial institutions in the country was very small and the level of monetization in the economy was very low. With the growth in number of BFIs and much higher level of monetization of the economy, the old framework cannot correctly represent actual situation.</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 absence of clear demarcation of their functions in the law and rules, the commercial banks, development banks and finance companies carry out almost similar activities making it necessary to include them all in the scope of monetary survey to get the true picture of money supply in the economy. However, the existing system of monetary survey does not include the activities of development banks and finance companies.&nbsp;</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Deependra Bahadur Kshetry, Former Governor of NRB suggested including cooperatives as well in the survey as they too are doing similar activities as those of the banks. He also suggested that the monetary survey should include also the quantity of Indian currency in circulation in Nepal. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">49th IHRA Conference in Nepal </span></strong></span></div>
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	<span style="font-size: 14px;">I</span><span style="font-size: 9.5pt;">nternational Hotel and Restaurant Association (IHRA) has selected Nepal as the venue for its 49th Congress scheduled to be held from December 1 to 3. Dr Ghassan AÃ¯di, the President of IHRA officially informed Prime Minister Jhala Nath Khanal about the schedule recently.</span></div>
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	<span style="font-size: 9.5pt;">The IH&amp;RA has its head office in Geneva and has 1.1 million members around the globe representing 300,000 hotels and 800,000 restaurants, informed AÃ¯di.</span></div>
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	<span style="font-size: 9.5pt;">IHRA had held its Congress in Nepal once before in 1968.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Nepal bagged the opportunity to organise the coming event winning over the bids of Argentina and Switzerland. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<strong><span style="font-size: 16px;"><span style="color: rgb(51, 51, 153);">Life Insurance Bonus to Go Down</span></span></strong></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he life-insurance policy holders should now be prepared for reduced bonus on their savings as the regulator of the sector, the Insurance Board (IB), has instructed the insurance companies to change their method o fcalculatin the returns from their investment for the bonus purpose. </span></div>
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	<span style="font-size: 9.5pt;">&nbsp;According to a recently issued directive from the Board, the actuaries of the insurance companies will now take maximum of 6 percent as the return from their investment. However, if the actual return in any of the last three yearâ€™s period covered by the acturial valuation is less than 6 percent, they are required to take that lower figure for the acturial valuation. </span></div>
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	<span style="font-size: 9.5pt;">The insurance companies transfer such amount from their profit and loss account to the fund from where they can distribute bonus to the policyholders and dividend to the shareholders. Any surplus after such fund is provided for will be transferred to insurance fund which is to be treated as reserve from which neither bonus nor dividend canbe distributed. </span></div>
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	<span style="font-size: 9.5pt;">This means the bonus rate on the savings of the life insurance policy holders will be less than 6 percent. At present some of the insurance companies are paying bonus at as high a rate as over 7 percent. </span></div>
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	<span style="font-size: 9.5pt;">Shekhar Kumar Aryal, the Spokesperson of the Board said, â€œThis provision has been made to ensure the longevity of the insurance company.â€</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Insurance company sources complain that this new rule will attract the people away from life insurance to depositing their savings in banks. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Community-led Micro Hydros</span></strong></span></div>
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	<span style="font-size: 14px;">T</span>he Society of Rural Empowerment based in Damauli has supported to install 112 micro hydro projects in eight districts that generated a total of one megawatt of electricity. Rs 53.2 million was invested in these projects. Sarita Gurung, President of the Society said the governmentâ€™s Alternative Energy Promotion Centre and Danish International Development Agencyâ€™s (DANIDA) programme on alternative energy provided financial support to the projects.</div>
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	As part of this programme, 47 projects were constructed in Dhading, 21 each in Gorkha and Makwanpur and 12 in Lamjung districts. Similarly, four each in Nawalparasi and Manang, three in Tanahu and one project in Rasuwa were constructed. According to the Society, 10,800&nbsp;households benefitted from the programme. Projects were developed in areas not linked with national transmission line and having little chance of linkage anytime soon. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Exporters Deprived Promised Incentive</span></strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he exporters are still denied the incentives they were promised by the government while presenting the budget for the current fiscal year. The reason behind this is the change in the government due to which there has been delay in getting approval from the council of ministers on the procedural guidelines prepared for this purpose. </span></div>
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	<span style="font-size: 9.5pt;">According to Toya Narayan Gyawali, a Joint Secretary in the Ministry of Commerce and Supplies, the guidelines were presented to the Council of Ministers about four months ago. But the approval was delayed as the government changed in the meanwhile. </span></div>
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	<span style="font-size: 9.5pt;">The government has made a provision in the current yearâ€™s Finance Bill to give the exportes a cash incentive of two to four per cent of the export value after the foreign currency payment is received against the export. The government has allocated Rs 250 million for this purpose.</span></div>
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	<span style="font-size: 9.5pt;">Udaya Raj Pandey, the President of Garment Association Nepal (GAN) expressed frustration that the government failed to provide the promised incentive even though the time for a new budget is approaching so near. â€œThe failure to implement the promise has irritated the exporters,â€ he said. </span></div>
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Pandey also said that since the government levies tax as soon as the budget is announced, it should show similar promptness also in implementing the promise of providing incentives.&nbsp;</span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">PE Management Board Proposal @ Cabinet </span></strong></span></div>
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<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The Ministry of Finance has submitted a proposal to the Cabinet Secretarieat for the formation of the Public Enterprises Management Board as promised in the budget announcement of the current fiscal year.&nbsp;</span></div>
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	<span style="font-size: 9.5pt;">Lok Darshan Regmi, a Joint Secretary at the Ministry of Finance said the board will coordinate and facilitate the activities of the public enterprises. </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;">However, the economists and management experts have termed this as a measure to avoid privatisation of public enterprises. In their view, this step would increase financial load on the PEs on the one hand and create one more bureaucratic hurdle in their operations. </span></div>
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	<span style="font-size: 9.5pt;">Dr Bimal Koirala, the Former Chief Secretary of the government said, â€œIt would be better to privatise the PEs than to form this board.â€</span></div>
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">The government has made a total loan investment of Rs 79.34 billion in these corporations so far. This year alone, Rs 16.19 billion was allocated in the budget for the 36 operational corporations. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>',
			'published' => true,
			'created' => '2011-08-08',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'TThe Korean Company that owns Himalayas Spring Water situated in Rasuwa has decided to sell half of its shares for Rs 200 million to Muktishree Pvt Ltd, a Nepali company.â€œThe Korean Company has........',
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	(int) 7 => array(
		'Article' => array(
			'id' => '381',
			'article_category_id' => '34',
			'title' => 'Ad And Media Expo Concludes(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12px;">T</span>he three-day Ad and Media Expo 2011 jointly organised by Advertising Association of Nepal, Alpabiram Pvt Ltd and Direction Nepal Pvt Ltd concluded on April 30. The expo organised to bring together the advertising and media industry, advertisers, clients, media owners and buyers was visited by 22,800 people. The organisers said the expo will be held next year as well.<span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Eleven New Hotelsfor NTY</span></strong></span></div>
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	<span style="font-size: 14px;">I</span><span style="font-size: 9.5pt;">n the first four months of Nepal Tourism Year (NTY) 2011, 11 tourist-standard hotels have been added. According to Shambhu Prasad Koirala, the Officer at the Hotel Department of the Ministry of Tourism and Civil Aviation (MoTCA) said new hotels were registered in the beginning of the NTY expecting good returns.</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;">â€œAs the registration procedure does not require investors to reveal the amount of capital investment, people unwilling to divulge their liquid assets are attracted to invest in the hotels,â€ said Koirala. Among the newly registered hotels, eight are in Kathmandu and rest three outside of the Valley.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">&nbsp;In 2010, 39 new hotels were added among which eight were three-star, two onestar and 29 tourist-standard. A total of 777 hotels have been registered with MoTCA so far. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Government Drafting Railway Law </span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he government is drafting a railway law to provide a legal framework for facilitating the construction of railway lines and operation of railway services. According to the Ministry of Commerce and Supplies (MoCS), the law is expected to be promulgated in the fiscal year 2011-12. A four-member team led by MoCS Joint Secretary Toya Narayan Gyawali is drafting the law.</span></div>
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	<span style="font-size: 9.5pt;">Matrika Prasad Marasini, a Undersecretary at the Law and Decision Implementation Section said, â€œIn the absence of such a law, the railway services in operation in Janakpur and Birgunj dry port are regulated by Indian Railways. After the law comes into effect, they will be regulated by Nepal Railways.â€</span></div>
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	<span style="font-size: 9.5pt;">According to the draft of the law being prepared now, a separate unit under the Ministry of Labour and Transport Management will be set up to coordinate railway issues.&nbsp;The government may also form a railway board under the proposed law.</span></div>
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	<span style="font-size: 9.5pt;">Currently Nepal has railway services operating on 29-kilometres stretch of Janakpur-Jayanagar. Similarly, there is a structure of railway upto Amlekhagunj from Raxaul though the service on this area is available only upto the Birgunj Dry Port from Raxaul. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The Ministry of Physical Planning and Construction has set a target to develop 4,000 kilometres of railway tracks in Nepal in the next 20 years. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Six Sigma Yellow Belt Certification </span></strong></span></div>
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	<span style="font-size: 14px;">S</span>ix Sigma Yellow Belt Certification Training conducted by Growth Sellers, a human resource company, concluded on May 15. During the two-day programme, Dr R S Chalapathi from the India-based Institute of Sigma Learning trained 35 senior managers from various companies. Six Sigma is a modern management tool that helps to lower cost and increase productivity. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">CG sponsors RCT</span></strong></span></div>
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	<span style="font-size: 14px;">C</span>G Electronics, a wing of Chaudhary Group (CG) will provide Rs 500,000 as sponsorship amount to Ranipokhari Corner Team (RCT) for a year. The two parties signed an agreement to this effect on May 12. For the contract period, RCT players will wear the jerseys during matches bearing the LG Mobile logo. .</div>
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	Ramesh Shrestha, the General Manager of CG Electronics and Bijay Manandhar, the President of RCT signed the agreement. Shrestha said such sponsorships by business houses will help develop professionalism in in Nepali football. Manandhar said the sponsorship has provided a great financial relief to the team, for this year. CG has been sponsoring the education and sports sectors for a few years now. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">SPI Acquires Worldlink</span></strong></span></div>
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	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">Software Paradigms International Group (SPI), an Atlanta-based company providing technology service and financial solutions, has acquired Worldlink Technologies, a Nepali software company. According to a statement issued by Worldlink, the company will now be known as SPI Nepal. The current Worldlink CEO Yajurendra Shrestha will head the new company as well. </span></div>
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	<span style="font-size: 9.5pt;">Established in 2001, Worldlink has been involved in software development related to human resource, e-governance and social security. Apart from domestic customers, the company also works with the government of Orissa, India and a&nbsp;Delhi based company, Invest India Micro Pension Services. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">SPI entered Nepal after establishing footholds in Europe, Asia, North America and Australia. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>',
			'published' => true,
			'created' => '2011-08-08',
			'modified' => '2011-08-08',
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			'description' => 'The three-day Ad and Media Expo 2011 jointly organised by Advertising Association of Nepal, Alpabiram Pvt Ltd and Direction Nepal Pvt Ltd concluded on April 30. The expo organised to bring together the advertising.....',
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	(int) 8 => array(
		'Article' => array(
			'id' => '380',
			'article_category_id' => '34',
			'title' => 'Financial Closure Of Upper Tamakoshi(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">epal Telecommunications Corporation (NTC) has agreed to finance Rs 6 billion to construct the Upper Tamakoshi Hydropower Project. A 456 megawatts hydroelectricity project is financed by domestic investors and being developed for an estimated cost&nbsp;of Rs 35.29 billion. </span></div>
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	<span style="font-size: 9.5pt;">Kanhaiya Lal Gupta, the Deputy Managing Director of NTC and Mrigendra Bahadur Shrestha, the Project Director of the Upper Tamakoshi Hydropower Limited (UTKHPL) signed the agreement.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Similarly, Employees Provident Fund has been investing Rs 10 billion, while Citizenâ€™s Investment Trust and NTC have put Rs 2 billion and Rs 6 billion respectively for the project. The remaining Rs 11.8 billion will be generated by the government. The project, to be completed in 2015, has 70 per cent investment financed by loans and the rest 30 per cent from share capital. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>
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	<strong><span style="font-size: 16px;"><span style="color: rgb(51, 51, 153);">Samitivej to Manage Grande Services </span></span></strong></div>
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	<span style="font-size: 14px;">G</span>rande Hospital Nepal and Samitivej Hospital Thailand have reached an agreement for service management of the hospital. Dr Roop Jyoti, the President of Grande and Reymond Chong, the CEO and Managing Director of Samitivej signed an agreement to this effect recently in Kathmandu.</div>
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	Grande Hospital, being constructed by CE Construction at Tokha, will have a capacity of 150 beds in a 14-storied building. The hospital plans to offer international standard health facilities at a low cost. Being constructed in a 210,000 square feet area, the building will be disabled-friendly. The hospital is being constructed at an investment of Rs 1.40 billion. It will have eight operation theatres, five elevators and four staircases. Jyoti hoped that once the hospital begins its services, the trend&nbsp;to go abroad for treatment will come to an end. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<strong><span style="font-size: 16px;"><span style="color: rgb(51, 51, 153);">MoTCA Seeks Updation of Hotel Standards </span></span></strong></div>
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	<span style="font-size: 16px;">T</span><span style="font-size: 9.5pt;">he Ministry of Tourism and Civil Aviation (MoTCA) is working to update its criteria for hotel and restaurant standards. Keshav Prasad Bimali, the Joint Secretary at the ministry said, also on the cards is the change in the rule so that the hotels will be mandatorily required to register themselves with MoTCA. The code is being updated to accommodate the changes made in various policies and rules four years ago (2064 Bikram Sambat) when the existing code was promulgated, he said. </span></div>
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	<span style="font-size: 9.5pt;">According to the existing rules, the hotels do not need to be registered with MoTCA. As a result it does not have a data on the number of hotels in operation. The code needs to be updated to include such requirements, remarked Shambhu Prasad Koirala, a Section Officer at the Hotel Division of the ministry. He said that this update will make it mandatory for hotels to be registered at the ministry and establish a renewal charge. </span></div>
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	<span style="font-size: 9.5pt;">The ministry is also planning to form a working committee in coordination with the Hotel Association of Nepal, Nepal Tourism Board, Nepal Academy of Tourism and Hotel Management and other concerned bodies for the upgradation and amendment of working directives.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The ministry said that the standard of existing five-star hotels need to be upgraded to meet SAARC standards. However, the ministry will update the code for five-star hotels only after updating the standards for the tourist-standard hotels. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Machhapuchchhre Wins Inter-bank Volleyball </span></strong></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: 0.2pt;">M</span></span><span style="letter-spacing: 0.2pt;">achhapuchchhre Bank Limited has won the inter-bank volleyball tournament beating Kumari Bank Limited with a score of 23-25, 25-21, 32-30 and 25-18 in the final. The Bank&nbsp;was awarded Rs 50,000 cash prize and a trophy. The tournament was organised to commemorate the 56th anniversary of Nepal Rastra Bank. Kumari Bank took home Rs 35,000 and the runners-up trophy. Everest Bank Limited came third beating Agriculture Development Bank. </span><span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">NIDCâ€™s 43rd AGM</span></strong></span></div>
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	<span style="font-size: 14px;">N</span>epal Industrial Development Corporation (NIDC) held its 43rd annual general meeting on May 7 after a gap of nine years. The annual reports from 2002-02 to 2009-10 were presented by NIDC Chairman Shanta Bahadur Shrestha during the meet organised in its central office at Durbarmarg. Among the major resolutions of the AGM was the decicion to change its name into NIDC Bank Limited. Coinciding with the occasion, NIDC also started ATM service from its Durbarmarg office. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Shalimar Begins Clinker Production</span></strong></span></div>
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	<span style="font-size: 14px;">S</span>halimar Cement Industry, in cooperation with Unitech Pvt Ltd, has begun trial production of clinker, a raw material used for producing cement. The industry located at Bara-Parsa Corridor has an investment of Rs 700 million and produces 30 tonnes of clinker every day.</div>
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<p style="text-align: justify;">
	<span style="font-size: 11pt; line-height: 115%;">Ashok Kumar Vaidya, the Managing Director of the company said the full capacity of producing 300 tonnes every day will be utilised in one-and-a-half monthâ€™s time. While this is the fifth Nepali company to produce clinker indigenously, other industries depend on imported clinker for cement production. The company has said it will supply clinker to other industries only after meeting its own needs.</span></p>',
			'published' => true,
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			'description' => 'Nepal Telecommunications Corporation (NTC) has agreed to finance Rs 6 billion to construct the Upper Tamakoshi Hydropower Project. A 456 megawatts hydroelectricity project is financed by domestic investors........',
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	(int) 9 => array(
		'Article' => array(
			'id' => '379',
			'article_category_id' => '40',
			'title' => 'URBAN HOUSING HOME IN HIGH-rises(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14.5pt;">T</span><span style="font-size: 9.5pt;">he conventional system of owner-built housing is still predominant but with the growing demand for land-for-house, the Kathmandu Valley is experiencing a space-constraint in recent times. It is becoming increasingly difficult for people to find suitable land to build individual residences on. However, inducing paradigm shift is a substantial challenge to overcome the tradition of building oneâ€™s own house. Vertical living, due to its sheer nature of accommodating multiple units, promises to become the preferred lifestyle option for many.&nbsp;Currently, the housing industry of Nepal is worth an estimated whopping Rs 200 billion. </span></div>
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	<span style="font-size: 9.5pt;">A total of 54 companies have received permission for construction of community or collective housing so far in the three districts of the Kathmandu Valley. These companies have received the nod to build 3,633 units of family residences against a demand of 30,000 units which is expected to exceed well over 40,000 units each year in the valley by 2020. While fiscal years 2007-08 and 2008-09 saw the highest number of new projects registration, 2009-10 had very few registrations and 2010-11 has no new projects initiated owing to lack of investment on the part of banks and financial institutions (BFIs). Om Rajbhandary, the CEO and Chairman of Comfort Housing Pvt Ltd reveals, â€œSome approved projects have continued to progress while some others have slowed down, delayed or downsized.â€ </span></div>
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	<span style="font-size: 11.5pt;">Current Scenario</span></div>
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	<span style="font-size: 9.5pt;">The overheated housing market has shown signs of meltdown intensifying the apprehension of the speculative investors leading to the BFIs losing sleep over huge loans issued to the housing developers. With the BFIs tightening issue of new loans and aggressively pursuing recovery of past loans, it will take a while before the now stagnant housing market bounces back, a developer opines. The BFIs had invested aggressively to begin with but the current slump has left them anxious due to their huge loan portfolio for the housing sector. </span></div>
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	<span style="font-size: 9.5pt;">Even though the housing industry is going through a difficult period, entrepreneurs take solace from the fact that scarcity of land along with a sense of security ensured by apartment complexes is bound to hold the business in good stead in the foreseeable future. The intended dwellers too are gaining confidence and slowly gravitating towards the concept of community living of late. On an average, the prices of apartments vary from anything between Rs 6 million to well over Rs 10 million. However, some companies have recently introduced economy flats costing about Rs 1.7 million.</span></div>
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	<span style="font-size: 11.5pt;">Realtorsâ€™ Perspective</span></div>
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	<span style="font-size: 9.5pt;">Itâ€™s about time the term â€˜realtorâ€™ came into force with obtained legality if Nepalâ€™s housing sector were to register a positive growth. The Nepal Land and Housing Developersâ€™ Association (NLHDA) has proposed the government to issue â€˜licence to operateâ€™ tag so that only the licensed realtors have the right to ply the trade. It will regulate the housing sector to a great extent and bring the realtors within the taxation bracket. Till now, the sector has been operating on an ad-hoc basis in the absence of concrete bylaws, says Ichha Raj Tamang, the President of NLHDA. He adds that the private housing projects have also been suffering from lack of proper legislation on housing development â€“ an effective â€˜code of ethicsâ€™ and â€˜property transaction actâ€™ are much desired for. </span></div>
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	<span style="font-size: 9.5pt;">Majority of the construction work is being carried out in a haphazard manner and in unplanned areas. NLHDA has urged the authorities to strictly regulate the construction business to address the ever-growing demand of urban construction and check the blatant use of landscape for its vertical growth. NLHDA has recommended that housing development be sought through land pooling projects. It will help plan a particular area right from the outset and thus ensure desired infrastructure required for residential colonies and apartment complexes. The painfully lengthy process of acquiring licenses is another impediment towards the smooth functioning of the sector. To address this issue, the developers have been asking the government to facilitate a one-door licensing process.</span></div>
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	<span style="font-size: 9.5pt;">The ceiling imposed on realty lending by the Nepal Rastra Bank (NRB) resulted in a slowdown of the housing sectorâ€™s growth. The central bank had directed BFIs to limit lending exposure to the housing sector to 25 per cent of their total investment portfolio. It had done so to deal with the fast inflating realty bubble. At odds with each other not too long ago, housing developers and bankers now collectively look at ensuring smooth recovery of realty lending. According to bankers, the current slowdown in the housing sector has much to do with the mismatch in demand and supply. The construction of apartments has continued unabated while their performance in terms of selling the properties has been dismal. Building trust among the targeted buyers is of vital importance too because people still havenâ€™t come to terms with trusting realty developers.</span></div>
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	<span style="font-size: 9.5pt;">Housing entrepreneurs who resisted selling for fear of descending price levels have now started to slash prices â€“ as much as 30 per cent â€“ to tempt buyers and recover their investments. Despite transactions nose-diving, the developers had hoped for a recovery but are now finding it hard to entice buyers even at reduced prices. The slowdown in realty has affected the BFIsâ€™ performance as their loan portfolio is hugely dominated by the housing sector. Quite naturally, despite committing long-term lending to the sector, the banks have now started to exert pressure for early repayment in an attempt to minimise their realty loan exposure. Currently, the total investment in the housing sector is Rs 97 billion which is 18.9 per cent of the total investments made by the BFIs, states Bhaskar Mani Gyawali, the NRBâ€™s Executive Director â€“ BFI Regulation Department.</span></div>
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	<span style="font-size: 11.5pt;">Central Bankâ€™s Influence and Government Policies</span></div>
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	<span style="font-size: 9.5pt;">The housing industry has been facing a crisis-of-sorts ever since the NRB issued stern directives in an attempt to prevent simulated skyrocketing prices of housing properties. The mandatory provision of declaring income source for purchase of properties worth a certain amount is another major hiccup. The hike in interest rates on loans from 9 to 17 per cent has further compounded the prevailing miseries. These are just a few among the many bottlenecks that have blocked the desired growth of the housing sector, industry entrepreneurs lament. </span></div>
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	<span style="font-size: 9.5pt;">The governmentâ€™s imposition of capital gains tax on housing transactions, too, has drove away buyers. It is but understood that revenue mobilisation through taxation is the primary objective of the government. Therefore, it comes as no surprise that the government has hiked property tax as well. Besides, the NRB also wants to minimise the speculative aspect of the housing business to prevent the bubble burst. </span></div>
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	<span style="font-size: 11.5pt;">Buyersâ€™ Viewpoint</span></div>
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	<span style="font-size: 9.5pt;">Unreal prices of apartments coupled with increasingly higher interest rates on home loans have made it extremely unaffordable for the general public to purchase new properties. And those who can afford are not too sure about the safety standards of these vertical structures especially with the imminent threat of an earthquake hitting the country anytime. They know that there are some developers who are out there to make a fast buck ignoring the threat to peopleâ€™s lives in the event of a natural calamity. </span></div>
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	<span style="font-size: 9.5pt;">However, the central bankâ€™s decision to create a separate category for home loans of up to Rs 6 million as â€˜personal home loansâ€™ has come as a respite and is widely appreciated. It has also provided a fresh lease of life to the low-lying housing sector. With some developers claiming to have sold a good number of units the moment the properties are opened for booking, rumours of artificial transactions have kept the consumers at bay. â€œThe buyers also expect a certain amount of transparency on the part of the developers to avoid the situation of investing money where the developers havenâ€™t put any,â€ says Ashoke SJB Rana, the President of Nepal Bankersâ€™ Association. Having a transparency mechanism will enable the buyers to assess the developersâ€™ strength and give them confidence to invest. </span></div>
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	<span style="font-size: 11.5pt;">Building Parameters</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;">The Department of Urban Development and Building Constructionâ€™s (DUDBC) monitoring mechanism ensures that the apartment complexes are designed as per established specifications to meet safety requirements. It also warrants the size of open space, size and number of units, road access and ground coverage among others. The department is responsible overall to guarantee the completion of procedures on part of the developers before commencing construction. Nepal is the 11th riskiest earthquake zone in the world and the Kathmandu Valley itself is located in one of the worldâ€™s most seismically active zones. This makes it imperative for the developers to plan appropriate structural designs and adhere to the National Building Code.</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;">The housing companies acquire their licenses only after fulfilling the required procedures. The developers get planning permit from the Town Development Committee (TDC) based on existing regulations and by-laws. The apartment buildingsâ€™ plans and designs that meet the National Building Code on safety, electricity, parking space, fire, other disasters and structural design are later approved by the DUDBCâ€™s division office, informs its Deputy Director General Shivahari Sharma. The projects also need to pass the Environmental Impact Assessment (EIA) for big scale ventures and Initial Environment Examination (IEE) for the smaller ones. </span></div>
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<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Housing for the Masses</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;">While the housing companies have been primarily catering to the needs of the wealthy, the lower middle class and the poor still cannot afford the properties developed by these companies. Therefore, though the housing business is providing shelters, it has overlooked the needs of the urban poor. In contrast, housing projects in a lot of countries look at addressing the needs of the economically weaker section of the population on a prioritised basis. </span></div>
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	<span style="font-size: 11.5pt;">Housing for Foreigners</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;">Nepal can very well attract foreign direct investment (FDI) by allowing ownership of apartments to the expatriate community living in Nepal. The government has floated an idea to this effect to let foreigners buy apartments for residential purpose. A preliminary plan has already gathered shape for this purpose. If this turns into reality, it promises to resurrect the housing industry and lend dynamism to the construction sector. Since the housing sector needs fresh capital injection to keep the momentum going, allowing foreigners to buy apartments could hold it in good spirit. This will make the sector more financially viable and generate greater employment courtesy the construction boom. </span></div>
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	<span style="font-size: 11.5pt;">Looking Forward</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;">â€œThe government must give the housing sector the importance it deserves and treat it as a national priority,â€ says Rajbhandary of Comfort Housing. Provision of affordable housing in partnership with the private sector and making newly constructed and under construction buildings safe for residential purpose will be critically important in the days to come. Quality urban housing is at the heart of the struggle to accomplish enhanced living standards. Till about a decade ago, there were limited developers but today, the consumers have a varied choice in the nature and price of the products. Along with the demand, appropriate products, for example, low priced houses are bound to enter the market sooner than later. </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;">If all existing problems settle with time, investing in a developer-built property can prove to be a sound idea because it spares one the hassle of managing sewage, construction materials and labour, water, electricity and TV cable connections and is more secure and comfortable, in general. The developers too would do themselves no harm if they adhered to safety standards and practiced customer satisfaction for a market that is on the course of getting matured. The hugely untapped potential of budget housing holds much promise because thatâ€™s what the largest section of buyers is waiting for. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Given the scarcity of land and the ridiculously high prices of the little land available within the city limits, there will be no option other than to grow vertically, says Umang SJB Rana, the CEO of Westar Properties. Nepalâ€™s urban population is expected to rise 18 per cent by 2015 and 30 per cent by 2030 which underlines the huge potential and a promising future for the housing sector. By correctly identifying the target segment, developing feasible projects, introducing right products at the right time and strategising marketing efforts in accordance will certainly ensure that the housing business is here to stay. Investors who are buying properties only for secondary transactions instead of residing in them end up creating â€˜ghost housesâ€™ galore. It would be great if the apartment complexes and housing colonies find buyers who are actually interested in turning them as their â€˜homesâ€™. The day is not too far when we shall see vertical structures dominate Nepalâ€™s urban landscape all over. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.05pt;">n</span></div>
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<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Brihat Community Living - Sitapaila</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;">â€œEco-friendly homeâ€ is an achievement for the urbanization, to achieve one goal - to create a home which is â€˜friendlyâ€™ to its inhabitants and sympathetic to the environment in which we live. Our Project incorporates a range of eco-friendly products and concepts.</span></div>
<div style="margin: 5.65pt 0in 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Its main features include:</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">1. Solar electricity provision â€“ for streetlights</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">2. Rain water recharge for water conservation</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">3. Proper garbage disposal system for waste reduction</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">4. UV protection sticker on south facing windows</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">5. Use of concrete lightweight blocks in place of bricks- for reduction of carbon monoxide emission and conservation of clay</span></div>
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<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Owned &amp; Marketed By:</span></div>
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<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">TCH Tower - IV, Ground Floor, Block - A</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Sitapaila, Kathmandu, Nepal</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Tel: +977 1 4282086/4286821</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Fax: +977 1 4288820</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">E-mail: info@brihatinvestments.com</span></div>
<div style="text-align: justify;">
	<a href="http://www.brihatinvestments.com/"><b><span style="font-size: 9.5pt; line-height: 115%;">www.brihatinvestments.com</span></b></a></div>',
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			'description' => 'The conventional system of owner-built housing is still predominant but with the growing demand for land-for-house, the Kathmandu Valley is experiencing a space-constraint in recent times. It is becoming......',
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	(int) 10 => array(
		'Article' => array(
			'id' => '378',
			'article_category_id' => '40',
			'title' => 'Downtown Housing Company(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 10pt;">D</span><span style="font-size: 9.5pt;">owntown Housing Company Pvt Ltd, a parent company of Downtown and City View Apartments, was founded in 1992 as a developer and manager of high-quality property units. Over the years it has provided products and services to accommodate the urban middle class by developing high-quality residential properties. Today, Downtown Housing Company is one of the most respected and diversified service firms available with dedicated people who serve a growing client base that reaches far and beyond.</span></p>
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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;">Downtown Housing manages the process from conception through completion - an approach that has been perfected over time to exceed the clientsâ€™ expectations. Downtown proactively works to ensure every property as once-in-a-lifetime investment opportunity for its clients, giving it the special care and attention to detail that enhances value for living within.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">City View provides clients with the kind of peace and tranquillity they want. Only 38 exclusive apartments (including 2. duplex pent houses) have been built here, with rich and stylish complex.</span></div>
<div style="text-align: justify;">
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<div style="text-align: justify;">
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<div style="margin: 0in 0in 5.65pt; text-align: center;">
	<span style="font-size: 15.5pt;">Guna Colony </span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt; letter-spacing: -0.2pt;">E</span><span style="letter-spacing: -0.2pt;">stablished in 1998, Guna Colony Pvt Ltd is a large and reputable company involved in property development. It has already completed properties like Stupa Housing in Sinamangal, Stupa Colony in Buddhanagar, Reliable Colony in Bhainsepati and LP Apartment in Lazimpat. New projects such as Bhainsepati Apartments, BN Apartment and GN Apartments in Gwarko have already been launched.</span></div>',
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			'description' => 'Downtown Housing Company Pvt Ltd, a parent company of Downtown and City View Apartments, was founded in 1992 as a developer and manager of high-quality property units. Over the years it has.........',
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	(int) 11 => array(
		'Article' => array(
			'id' => '377',
			'article_category_id' => '40',
			'title' => 'Housing In BirgunjSlow Growth, High Hopes(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong><i>By Bimmi Sharma</i></strong></span></div>
<div style="text-align: justify;">
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<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">H</span><span style="font-size: 9.5pt;">ousing business may be mushrooming in the Kathmandu Valley. But the story is different in Birgunj. People with diffent backgrounds find it quite normal to live in separate flats and apartments within the same building in the capital city.&nbsp;But such concept of community living hasnâ€™t gone down well with Birgunj locals. They still prefer to stay separate from people of other religion, caste or culture. It is this mindset that is the major impediment for a flourishing housing industry in the city, lament housing entrepreneurs. They complain of having a difficult time implementing the idea of community housing that was first conceptualised here 14 years ago. So far, all Birgunj could manage are three apartment complexes and a fourth one under construction. </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;">Nanakchand Ashwani and Shyam Rungta were the first ones to enter the housing business here. They have built two apartment complexes - â€˜Ganeshâ€™ and â€˜Lakshmiâ€™. These two five-storied apartment complexes have a total of 40 units. The flats at Ganesh were priced at Rs. 900,000 and at Laxmi at Rs 1.35 million per unit. However, these flats remained unsold for a long time. </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;">Eight years after these attempts, Triveni Group constructed a 10-storied apartment complex â€˜Triveni Gopalâ€™ in Birta area of Birgunj. Built at a cost of Rs 50 million by Birendra Sanghai of the Triveni Group, the complex has 72 units in total. Sajjan Kumar Chimariya, the manager of the complex says, â€œApartment culture is yet to pick up in Birgunj because people are more comfortable with the idea of building houses on their own land and to enjoy complete ownership.â€ He adds that the project barely managed to recover the investment and did not yield any profit whatsoever. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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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;">Despite the apartments having all facilities including electricity, water, garden, park and security, people find these rather expensive and inconvenient. Out of the 72 flats in â€˜Triveni Gopalâ€™, 50 are occupied while the owners of the rest 22 units havenâ€™t started residing here. They rather want to sell their properties. â€œThe countryâ€™s volatile situation is primarily responsible for the lukewarm response towards housing in Birgunj,â€ says Chimariya. He adds, â€œThere is no future for housing business in Birgunj. Itâ€™s advisable that the new entrants donâ€™t enter the market here.â€</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;">â€˜Prasanna Apartmentsâ€™ which came into being a year ago has started getting residents moving in already. Tara Shumsher Rana, a Director of â€˜Prasannaâ€™ apartments opines, â€œThe housing business is experiencing a low right now but it has a good future in Birgunj due to the impending development of infrastructure in and around this city.â€ The construction of Nijgadh International Airport close to Birgunj, Kathmandu-Nijgadh Fast Track Road, Integrated Customs Checkpoint, Birgunj-Thori Road, Birgunj University and a well developed agriculture market are bound to make Birgunj a more attractive place to live. These developments will have a positive impact on the housing industry, opines Rana. His company Prasanna Constructions is in the business of constructing buildings for its clients for 25 years now. Built at an investment of Rs 50 million, â€˜Prasanna Apartmentsâ€™ has 20 flats altogether and costs anything between Rs 3.2-4 million. Of the 20 flats, only thee are remaining to be sold, Rana informs. â€œThough the present situation is not conducive, once there is political stability and economic progress begins, housing business in Birgunj will definitely flourish,â€ Rana says optimistically. </span></div>
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<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 9.5pt;">Ashok Kumar Baid, an industrialist who owns Shalimar Cement has joined the housing business and plans to build â€˜Kamdhenu Apartment Homesâ€™ using the â€˜Kamadhenuâ€™ brand under franchise from the Indian owner of the brand. To be constructed at an investment of Rs 800 million, this 12-storied apartment with 134 units will be ready for occupancy in two yearsâ€™ time. Each flat in this â€˜first apartment complex of international standard in Birgunjâ€™, as the developer calls it, will cost Rs 7-8 million. â€œInterested buyers will need to pay 20 per cent of the total amount upfront. The facilities include swimming pool, health club, gym, park, garden and provision store,â€ says Baid. He says he is confident of selling all the units of his project which will come up at Ward 13, Adarshanagar in Birgunj. Like Rana, Baid too is optimistic that housing industry in Birgunj will grow as various developments are taking place in and around Birgunj. He says, â€œBirgunj is a leading business destination and the development projects being implemented in and around here will definitely benefit the housing industry as well as other businesses.â€</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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<p style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">â€˜Kamdhenu Apartment Homesâ€™ will be the fourth apartment complex in Birgunj. The previous three apartment houses have a collecgive investment of Rs 150 million. When the investment proposed for Kamadhenu and some other projects that are in the pipeline are added up, the total investment goes up to Rs. 1 billion. Ashok Kumar Temani, the President of Birgunj Chamber of Commerce and Industry is upbeat about the business potential of apartment complexes. â€œIn the future, Birgunj will be like Shanghai or Mumbai. Once the projects which are being constructed at break-neck speed are completed, we will see skilled workers flocking to this city for work,â€ Temani predicts. He continues, â€œThese peopleâ€™s housing requirements ensure a bright future for the housing industry here.â€ </span></p>',
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			'description' => 'Housing business may be mushrooming in the Kathmandu Valley. But the story is different in Birgunj. People with diffent backgrounds find it quite normal to live in separate flats and apartments within the...........',
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	(int) 12 => array(
		'Article' => array(
			'id' => '376',
			'article_category_id' => '40',
			'title' => 'Growing Housingin Pokhara(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12px;"><i>Text and photos: Deepak K Shrestha</i></span></div>
<div style="text-align: justify;">
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<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">With increasing urbanisation and modernisation, the housing industry in Pokhara is gaining momentum though not as fast as in Kathmandu. Along with tourism, education and the health sector, housing is fast becoming an attractive investment prospect for investors here. In terms of population growth and migration, Pokhara is second only to Kathmandu. However, the community housing business has not grown in the same proportion. Entrepreneurs believe that since it is a new concept, people will take time to get attracted to this concept. However, it is already a seven-year-old industry in Pokhara, with two companies already in it while other two are preparing to enter the fray.<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;">Annapurna Developers Pvt Ltd (with the brand name â€˜Fishtail Residencyâ€™) and Pokhara Homes Pvt Ltd have started operations already in Gharipatan of Pokhara Sub Metropolitan City. These companies claim to provide facilities at par with the housing complexes in Kathmandu such as good roads, water and power availability as well as health club. This has attracted buyers who have the means and desire to live in such housing complexes. Besides these, Road Show Real Estate Pvt Ltd and Gandaki Real Estate Pvt Ltd have entered this business recently. While the Road show has its project at a location called â€˜Deepâ€™ that is in the Ward No 16 of Pokhara Sub-Metropolitan City, Gandaki has its project at Lekhnath Municipality under the brand name â€˜Lekhnath Dream Colonyâ€™.&nbsp;Investors claim that the consumers have shown significant interest lately for buying such property.<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;">While renowned contractor and industrialist Surya Bahadur KC is the investor for Pokhara Homes Pvt Ltd, Dhruba Kumar Shrestha, Kalu Gurung and Bindu Kumar Thapa are the investors in Fishtail Residency, Road Show and Gandaki Housing respectively.<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;">Pokhara Homes started building houses on 70 ropanis of land about seven years ago but faced adversity for the first few years. Tej Baniya, the Operations Manager of the company said, â€œWe started doing good business only about three-four years ago.â€ A total of 54 houses were built under phase-I out of which 52 have been sold already. â€œWe are starting phase-II in the next six months which will have 32 units,â€ Baniya informs. The company sells two-and-a-half-storied bungalows, complete with five bedrooms, built on 8-10 annas of land. Baniya claims that each house costs Rs 9-9.5 million just for the construction. He further says that the mere announcement of phase-II has attracted 17 bookings already. Pokhara Homes is also constructing 20 colonies and 14 separate houses near Chorsanghu in Pokhara. The houses and apartments in this area will be less expensive than the ones in Gharipatan.<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;">All housing companies in Pokhara are conducting business with prior approval from the authorities concerned â€“ i.e. municipality and Pokhara Valley Town Development Committee. â€œDue to close proximity of Gharipatan area to the airport, we are not allowed to construct buildings higher than two-and-a-half-stories,â€ says Bhupendra Shrestha, the Marketing Director of Fishtail Residency. The company which started work about four years ago on 21 ropanis of land has already sold 40 of the total 66 units constructed. The buyers have already started residing in 30 of these units, each one a two-and-a-half-storied, four-bedroom bungalow costing over Rs 10 million.<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;">Gandaki Real Estate Pvt Ltd that was primarily dealing in real estate holdings thus far has started constructing housing units on 81 ropanis of land in Talchowk of Lekhnath-8. The company has a target of building 30 units within a year, each unit occupying 5.5-8 annas land and priced between Rs 9 and 15 million.<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;">Suman Kumar Gurung, the Pokhara Branch Manager of Road Show Real Estate said that a total of 108 units will be constructed in Deep of Pokhara-16. The units built on 5-9 annas are targeted at the upper and middle class consumers. The housing complex will have kindergarten, tennis court, swimming pool, cable television, telephone and power generator among other facilities. </span></div>
<p style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">The stakeholders of Pokharaâ€™s housing industry include locals as well as the rich from the capital. Nepal Armyâ€™s retired general Pyar Jung Thapa and Galaxy Schoolâ€™s founder Gita Rana have already bought properties in the city. Besides the established businessmen, the newly rich people as well as&nbsp;retired soldiers of foreign armies have shown tremendous interest in Pokharaâ€™s community housing units. Gurung says, â€œPeaceful environment, security and a modern lifestyle is attracting retired professionals immensely.â€ He adds that the housing industry in Pokhara has a great future because the very name of the city rings a bell in peopleâ€™s ears since it is considered â€˜heaven on earthâ€™. Political instability, the Central Bankâ€™s endless directives and lack of investment climate have affected the housing sector as well. But the housing entrepreneurs remain optimistic that the flourishing housing business outside the Kathmandu Valley will be provided encouragement by the government.</span></p>',
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			'description' => 'With increasing urbanisation and modernisation, the housing industry in Pokhara is gaining momentum though not as fast as in Kathmandu. Along with tourism, education and the health sector, housing..........',
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		'Article' => array(
			'id' => '375',
			'article_category_id' => '40',
			'title' => 'We Need To Reinvigorate The Real Estate Climate (june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 14px;"><b><span style="line-height: 120%;">Bijay Rajbhandary</span></b></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 7pt; line-height: 120%;">Chairman and Managing Director</span></div>
<div style="text-align: justify;">
	<span style="font-size: 7pt; line-height: 115%;">CE Construction Pvt Ltd<br />
	<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	Housing culture has been in practice for almost a decade now. It is certainly getting popular as it provides infrastructure facilities like security, drinking water, electricity, internet, common space and other facilities. However, despite the growing trend of community housing, we can't expect the individuals to completely stop building independent residences.</div>
<p>
	&nbsp;</p>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">You have been in the housing industry for some time now.&nbsp;Where do you stand currently? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	Real Estate is our core strength but at the same time, we have been operating in other sectors as well. We have a wide range of properties in different locations in and outside of Kathmandu and our ultimate objective in the real estate is to serve the mass. Currently, the housing sector is experiencing a slow growth. Different stakeholders such as the government, regulatory body, financial institutions, developers, investors and individual buyers are somehow responsible for the slow pace of the housing industry.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">The NRB has relaxed lending for the housing sector recently. How big is the relief? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	It has definitely provided relief to some extent. But the impact is yet to be seen because there is a liquidity crunch in the market and the banks have a problem maintaining credit-to-deposit ratio. We need to work very hard to regain a prosperous real estate climate.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">As the banks are shying away from investing further in this sector, how do you plan to take your projects forward?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.15pt;">We have been using different financial tools on a project-to-project basis and the major portion of our cash flow is coming through sales. There are basically two categories of buyers the speculative investors who intend to sell the property at later date at higher prices and the end users who really want to settle in those homes. Both types of people seem quite reluctant to invest in this sector at the moment because of political uncertainty and unclear policies. We are working hard to come up with innovative tools to cater to both the categories. At the same time, we are introducing attractive packages for the buyers. Project management being our strength, we periodically map our project execution plan, assess the risks and the uncertainties and act accordingly. Even though the banks are going through a difficult time, they have been extending cooperation towards us because of our credibility. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">The interest rate has tremendously increased increasing the cost of housing development and eventually the price. Thus the properties are now beyond the general public's affordability. What do you suggest to tackle this problem?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.15pt;">Yes, the housing sector is reeling from the impact of the interest hike, however, it is minimal. The projects are usually funded through equity, borrowings from the financial institutions, credit from the vendors and subcontractors and most importantly, from sales. In general, the share of bank funding in a project is about 30 to 45 per cent of the base cost. Of the sales price, the share of bank funding is only 25 to 35 percent. So, the interest hike of 5 per cent has an impact of about 1.25 to 1.75 per cent on the sales price. The developers should be willing to absorb that from his profit in view of this difficult time. Therefore, the slaes price need not go up just because the interest rate has gone up. In order to continue with the planned projects, the developers will have to resist hiking the price and be content with lower profit. This is the best strategy till the buyers are in wait and watch mentalality. The impact on sales is not because of the price of the product itself but due to the interest on loan which buyers take from the financial institutions. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">Don't you think that the houses and apartments are priced unnaturally high? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">When we talk about the price of the housing products, one needs to take into account the basic components: the price of the land as well as the cost of the building and infrastructure. So, in the current context, developers can only play with the land price as the other two components are easy to calculate. We ask the buyers compute the price of the above mentioned components of our units and let them sum it up. As far as the land price is concerned, buyers can check the price in the project neighbourhood. Our price turns out to be 20 to 25 per cent less than what the buyers come up with after such calculation.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	Since the buyers are getting the finished product, they save in the hassles that they may otherwise go through when they build their house on their own. If you assign monetary value also to these hassles, the houses that you buy from a developer are much cheaper than what you will have if you construct it on your own.&nbsp;In our case, it is even cheaper because we are the single real estate solution provider- we buy the land ourselves which saves in the service fee of the broker, we do in-house designing, we ourselves are the contractors and we buy local material in bulk and import many branded materials through our trading division. In comparison, individual house owners building their own house have to buy all these on their own in retail. In that process they end up paying higher for everything. And quality is the further value addition when you buy from a developer because the developers are equipped with resources like manpower, equipments and construction technology.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">It is said that apartments are not much preferred by Nepali people. Therefore, a lot of apartment units from the developers are lying unoccupied. How do you view this?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.15pt;">&nbsp;This is very true but at the same time, we do need to understand that any change takes time. Currently, a number of units of completed apartments are either still unsold or unoccupied even if they are sold. Therefore, progress of many projects is slowed. However, this slowdown in the progress is not only due to inadequate sales but also due to lack of fund as bank lending is curtailed. Many developers fear that if they borrow at high cost and finish the units but they remain unsold for long, they may have to incur very high maintenance cost for such apartments.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	However, we in CE are trying to complete all our projects on time to send a positive message across. Presently, the criteria for the buyers selection of a property are: the credibility of the developers and the physical status of the project. Buyers are comfortable in buying finished products because it is like buying any other commodity. Counselling as well as other marketing tools might not be that effective at the moment as compared to putting on sale the finished product.<br />
	 </div>
<div style="text-align: justify;">
	No matter how the people at present may view the apartments, the apartment projects are viable because the price that the buyers of such apartments will be paying will be lot cheaper when compared to the upgraded lifestyle that the buyer can enjoy in such apartments. It is just a matter of time before people shed their inhibitions about buying apartments.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">What are the required measures to improve this sector?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.05pt;">First of all, the country needs to assess whether real estate is a need for us or not. If yes, all the concerned parties including the developers need to extend their full cooperation. To gain the confidence of the buyers, I have different recommendations to my colleagues. Those who have not started their projects must have a thorough plan to work out the cash flow before they start the project. They must also have a full proof marketing plan. As for those who have started their projects, their primary responsibility should be to complete the sold units fast and meet the contract conditions as well as reschedule construction of unsold component of the project based on cash flow and sales forecast. This strategy will not only help win the confidence of the buyers and investors but also that of the financial institutions.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.15pt;">The average age of a building is around 50 years. What will happen to those living in the apartments and individual houses developed by housing developers after this time period? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The age of a building depends on the technology used to build it. The property is insured against earthquake, fire or any other kind of damage. If something happens during the lifetime of a building, either a community housing or an apartment building, it will usually be compensated through insurance.&nbsp;Once the building's lifetime expires, the law clearly states that the ownership of the property will be ascertained on a pro-rata basis. You have two options - either to rebuild the property with the same proportion of ownership or if all the flat owners of a particular property agree to sell it, they will get the sales proceeds divided amon themselves on a pro-rata basis. If the property value grows tremendously during the lifetime of the building or afterwards, the owners will have the option to demolish and come up with a different product. For example, it can be a commercial complex or any other product that may yield higher return. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">Is there an issue with the ownership of the flats? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	Well, there is no issue whatsoever at all regarding flat ownership. Once you buy a flat, you get an ownership certificate from the Land Revenue Office. When a building is complete, the municipality and the department of urban development and physical planning inspect it and issue the completion certificate. It then recommends the Land Revenue Office which issues you the certificate of ownership.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">How long will it take to change the housing culture from independent houses to community living in flats and condominiums ?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	Housing culture has been in practice for almost a decade now. It is certainly getting popular as it provides infrastructure facilities like security, drinking water, electricity, internet, common space and other facilities. However, despite the growing trend of community housing, we cant expect the individuals completely stopping to build independent residences on their own. This is because housing projects will not be able to meet the individual requirements of all the people.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">Tell us something about your ongoing projects? </span></strong></div>
<p style="text-align: justify;">
	<span style="font-size: 11pt; line-height: 115%;">CE's current housing projects include: Vinayak Colony (176 units of independent houses) in Bhaisepati, Grande Towers (529 High-End apartments) in Dhapasi, Veena's Residency (76 units independent houses) and Harmony Housing (74 units independent houses). Similarly, we have recently completed Vinayank Colony-phase 1 in Bhaisepati, Rio Apartment in Kupondol and The Retreat Apartment in Bijayshwori. We are also coming up with two affordable independent housing projects in Sitapaila and Budhanilkatha.</span></p>',
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		'Article' => array(
			'id' => '374',
			'article_category_id' => '40',
			'title' => 'Developers-built Housing Market Is On The Rise (june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 14px;"><b><span style="line-height: 120%;">Om Rajbhandary</span></b></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 7pt; line-height: 120%;">CEO and Chairman</span></div>
<div style="text-align: justify;">
	<span style="font-size: 7pt; line-height: 115%;">Comfort Housing Pvt Ltd</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	Over the past three years, the land prices have risen astronomically high and it has become a speculative market. Investors have invested because they saw prospects for profit. Such investors are not selling as&nbsp;they are waiting for higher prices. And they will continue holding as long as they have the capacity to hold.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>How do you evaluate the housing industry at present?</strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">I started my career as a developer and we are the pioneer in promoting community living concept in Nepal and real estate as an industry. My aim is to establish this as a professional institution because this is a very large industry where everyone can be adjusted. Human life does not exist without real estate because any building, whether it is hospital or a theatre or a residence, belongs to this sector. So, this sector should be developed in a proper way. When we compare Nepal with any other country, our urbanisation is largely unplanned. Housing industry is dependent on three elements - government, individuals and the developers. Our government has a different agenda and the government people are not bothered about well managed urbanisation. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>How do you look at the future of this industry?</strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.15pt;">Nepal's 15 per cent population live in urban areas whereas the global urban population today is 50 per cent. By 2030, our expected urban population will be around 30 per cent while the global urban population will reach 70 per cent.&nbsp;According to a survey, in Nepal, we require nearly 270,000 housing units annually. In 10 years time, one million units will need repair and maintenance. Likewise, within the Kathmandu Valley, we will have a deficiency of around 40,300 units every year. So, it has a bright future and huge potential. On the other hand, secondary transaction is equally important. In my opinion, in community living, there is 10 to 15 per cent secondary transaction. The secondary transaction also generates revenue for the government.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>How can the housing sector be revived from the current problems, such as the restrictive rule of Nepal Rastra Bank?</strong></div>
<div style="text-align: justify;">
	A number of factors affect the housing market. They are: government policies, financial institutions, building materials, building technology, households, land prices and the real estate agents. We have different policies coming from the government and the Nepal Rastra Bank (NRB). There are a few aspects in the government policy that need to be addressed immediately.<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">First is&nbsp;the capital gain tax rate that is 10 per cent for any transactions within five years and five per cent after five years. Thre is difficulty for people to afford 10 per cent capital gain tax. So, when the people sell the property in the secondary market, they report transaction figure to the government, they show a lower than the actual figure. This ultimately affects government revenue. For example, if I buy a property for Rs 10 million and sell that in a year-and-a-half for Rs 20 million, then my capital gain is Rs 10 million. And from that Rs 10 million, I am expected to pay Rs 1 million as capital gain tax to the government.&nbsp;To avoid such taxes, people are showing Rs 12 million on paper though the actual transaction is for Rs 20 million. This way, the government is losing revenue. Once the property is liquidated, the money is normally deposited in the bank. But while depositing the money in the bank, you have to show the source of the money. Hence, only Rs 10 million can be deposited. The rest Rs 8 million remains out of the system. This is one of the reasons for the current liquidity crisis.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Second, while buying land of more than Rs 3 million, it is mandatory to declare income source. This is the other concern that needs to be addressed immediately.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">Housing must be recognised as an industry so that the revenue goes into the state coffers. The NRB limitation has now been relaxed and a new loan portfolio category - home loan - has been created as well. I think the banking sector too should have a positive attitude towards housing industry. There are three different perceptions among the banks - some say that the real estate is an industry and profits can be made from this. Thatâ€™s why they have made investments in this sector. Others say that the real estate is a future industry and they need some experience in this sector. So they have made limited investments. There are yet others who regard as a very risky industry. Therefore, they have made very small investment in this sector.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	We are currently at the bottom of the real estate cycle. To recover from such a state, these government policies and the perception of the banking sector towards this industry should change.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>Though the NRB has relaxed lending, some of the housing developers say it is yet to make its impact in the market. Why such slow response?</strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Over the past three years, the land prices have risen astronomically high and it has become a speculative market. Investors have invested because they saw prospects for profit. Such investors are not selling as&nbsp;they are waiting for higher price. And they will continue holding as long as they have the capacity to hold. Some investors are keen on recovering the principal amount if they are not in a position to make profits. Some other investors are willing to liquidate even at a loss so that they may not need to continue bearing the financial burden. We are at a stage where even if we can't make profits, we have to liquidate the property. Our strength will be tested in mid-July because there will be pressure from banks. Our inventory holding capacity too will get revealed. Today, if you can sustain yourself, you will emerge winner but if you can't, you will have to liquidate to get the return on interest and principal. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>When the bank's investment was curbed, how severely were your projects affected? How did the companies manage to take their projects forward?</strong></div>
<div style="text-align: justify;">
	As per the data from the government authorities, fiscal years 2007-08 and 2008-09 witnessed the highest number of new projects registration while 2009-10 had very few and in 2010-11, there are no new projects registered at all. The projects approved in the past are making progress, but some of them are progressing very slow or they have downsized.<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.15pt;">An investor will definitely look for maximum returns. But people do not have much confidence in the real estate industry at present. So people are not putting in money. Similarly, banks are also not investing which is why this industry has slowed down.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">One indication of low sales of apartments is that Nepalis are not much attracted towards group housing. What should be done to assure them that such houses are better than individually constructed residences?</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">I personally feel that people have gained more confidence in group housing now. A decade ago, this concept was very new. Today, a number of developers have entered the market with their projects because the concept has been accepted by the people. The success or failure of a project is a different issue altogether. The concept of community living has been largely accepted by the Nepali people. Now, the percentage of owner-built houses is declining while the developers-built housing market is on the rise. In developed countries, all the people buy houses from developers only. Once you are very rich, then you may want to go for custom-built houses.<br />
	<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">People complain that the developer-built houses and flats are unreasonably priced. How can the price be brought down to make the houses affordable for more people?</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">In my opinion, the prices of the developer-built houses are reasonable at present. Therefore, the prices are not going to come down from what they are. Though some investors and developers may sell their property at even lower price than what it is at present, that will be only in case of financial distress. The land purchased by the developers was very expensive in the first place. The interest on the capital borrowed is very high. Similarly, there is a high uncertainty cost. Besides, human resource cost is getting expensive by the day. In all ways, if you compare with yesterday's price, today's price is at the same level. But the expenses have certainly increased. So, the developers have cut down on their profit. They are at a point where they can't come down any further in price.&nbsp;</span></div>
<div style="text-align: justify;">
	<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>that means there is no plan to build more affordable housing?&nbsp;</strong></div>
<div style="text-align: justify;">
	It is true that developers are not coming up with affordable housing. As a developer, we should come up with low priced products targeting the wider mass. While we at Comfort Housing are planning to come up with affordable housing, some colleagues in&nbsp;inthis industry have already brought such products to the market. So, the products will come to the market as per the demand in the market. The problem is that while the people have low budget, they have a high value house in their mind. They should also know how much they can afford and what they will get within that.</div>
<div style="text-align: justify;">
	<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>Commercial and residential housing projects are centred in few cities, mainly in the capital. Why are developers not interested to take such projects in the semi-urban areas and small towns?</strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">Well, the concept has changed now. I had started a project in Dharan a long time ago. At that time, the community living concept was not popular. The migrant population of Kathmandu is 39.6 per cent. Everyone wants to own a house here as Kathmandu is the capital city. That is why developers are mainly concentrating in Kathmandu valley. Now that the peace process has progressed to some extent, development outside the Kathmandu valley is bound to take place in a year or two. The land prices in all the commercial towns have gone up like anything and that is one of the indicators. Even in the Kathmandu valley, the projects have come up in the suburbs. Our urban area is expanding by 4.6 per cent every year. Today, three to five kilometres periphery of the ring road is also considered urban area. So, the developers are going beyond the ring road and that is why we see a lot of housing projects centred within this belt. I feel that we should go further beyond that. We should focus on the development of suburban areas so that we can minimise the load on the carrying capacity of the city.</span></div>
<div style="text-align: justify;">
	<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">The Supreme Court recently declared null and void the rule that required all transactions above Rs. 5 million to be made through bank. How much relief would it provide to the industry?</span></strong></div>
<p style="text-align: justify;">
	<span style="font-size: 11pt; line-height: 115%;">Not much because the problem is more with the worry and suspicion the people have about the situation tomorrow. They are not sure what sort of new charges may be levied then. However, this ruling by the Supreme Court will help to some extent.</span></p>',
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			'title' => 'Dr Thomas Gass',
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			'content' => '<p>
	<span style="font-size: 14px;"><strong><br />
	</strong></span></p>
<p>
	<span style="font-size:14px;"><strong>The Taxpayers Of This Country Are The Major Donors To Nepal (july 2011)</strong></span></p>
<p>
	<br />
	 </p>
<div style="text-align: justify;">
	<span style="font-size: 12px;"><strong><img align="left" alt="taxpayers" border="1" height="195" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/interview(4).jpg" style="width: 139px; height: 195px;margin:10px;padding:10px;" vspace="5" width="139" />Dr Thomas Gass</strong> is the first residential Ambassador of Switzerland to Nepal. He was previously Switzerland's ambassador to the United Nations in New York and spent five years there prior to arriving in Nepal. He holds a PhD in biology and began his career with the Swiss Agency for Development and Cooperation (SDC) in 1988. He has held positions in the Swiss civil service and with the United Nations. Gass was the Vice-President of the executive board of the United Nations Development Programme and United Nations Population Fund. He has also lived in Guyana and worked in Africa and the former Soviet Union. In an interview with Pinaki Roy of <i>New Business Age</i>, Gass discussed a diverse range of issues from Swiss cooperation and its impact on the Nepali society to the constitution writing process in Nepal. Excerpts:<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><strong>Switzerland is among the few countries that initiated financial assistance to Nepal since 1959. How do you evaluate Swiss cooperation over the last 52 years?<br />
	<br />
	<br />
	</strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">I would say that this has been an extremely fruitful partnership that has encompassed mutual learning and has evolved over the time as any working partnership should. Initially, Switzerland implemented many projects directly and we had up to 100 experts working here at a time in the 1970s. We work differently today as we place more emphasis on the leadership and the coordination of the government and make use of national capacities for our projects here. We work through the ministries, INGOs and the local NGOs among others.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">One of your primary objectives has been to build rural infrastructure, particularly, the suspension bridges. Do you systematically assess the economic impact of these bridges constructed mainly by Swiss support?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">Yes, we do systematically assess the impact of our projects. But we don't assess these projects only in an economic way; we also look at them from a social and inclusion point of view. Over 1,600 trail bridges have been built and 3,500 maintained in the last 10 years. As a result, over 4.8 million people have better access to services through safer river crossings. On an average, each bridge has reduced walking distance by 2.5 hours and about 4 million person-days of employment have been generated through these bridges. These bridges are turnkey projects constructed by the villagers and the community. In the last four years alone, school attendance has risen by 22-27 per cent and visits to health centres have increased by 20 per cent on an average in places close to the newly built bridges. So, these are the kind of evaluations that we have. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">Forestry is a major area that you have been contributing to. However, the Swiss government has diverted its attention from forestry to other areas of late. What could be the possible reasons for this?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">We certainly have invested a great deal of time and resources in forestry and it's true that we have been focusing on some other areas too. However, let me correct you by saying that we are still interested in forestry. We are and will continue to invest in forestry. To give you the figures, we have been supporting the previously-funded forest project since 1991 which will end this year. The project has resulted in reversed deforestation for 185,000 hectares of government-managed forests. It has also improved the condition for 135,000 hectares of community-managed forests in the three districts where SDC [Swiss Development Corporation] has been active. Additionally, increased availability of forest products has contributed to sustainable livelihood of 145,000 families and 16,000 person-days of forest based employment have been generated for the poor. Strong multi-stakeholders mechanism and participation from empowered community groups were crucial while achieving these results.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">We are currently planning and preparing a multi-stakeholder forest programme together with DFID and Finland with the Ministry of Forest and Soil Conservation in a supporting and facilitating role. It will build on our respective experiences and extend its impact to a great number of districts spanning over 10 years. The programme will cover about 60-65 districts of the total 75 districts in Nepal. Therefore, I would say that our presence in the forestry sector is probably more than ever.<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">You have tried to link Swiss contribution with entrepreneurship, for example, the employment fund. As a drastic departure, you have chosen to work with private companies as trainers. How successful has the idea been?<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">We have been engaged in vocational skill training since the 1950s with cheese and carpet production. We then moved into more formal vocational training with technical schools such as the one in Balaju.&nbsp;We were also associated with the Technical School in Jiri in the 1980s and the Training Institute for Technical Instruction (TITI) in the 1990s. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">This cooperation changed over the time because many more national capacities were becoming available in the formal training sector. At the same time, we realised that we were reaching only a small number of trainees through formal training who could perhaps afford on their own. We started partnering with private entities as training providers to reach the poorer segment of the society as well. It is easier to target disadvantaged and marginalised groups through our new approach. The onus is now on the training provider to find the first employment for the trainees. We feel that vocational training responds more directly to the needs of the labour market through this approach. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;"><br />
	The Swiss government was supporting the promotion of good governance. Do you think it has contributed towards transformation of government practices in Nepal?<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">The money that Switzerland invests into its development cooperation with Nepal comes from the Swiss tax payers. It is therefore absolutely essential that we give adequate attention to good governance and fiduciary management of the projects funded by us. And, we hope that it has a positive influence on the communities and the ministries we work with. Like any other country, Nepal requires good governance across the board from the villages to the central government and from the local associations to the major national parties. Our influence is obviously less at these levels. It is the Nepali people that have to hold their politicians and administration accountable for their respective actions. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">On our part, we have promoted and tried to practise public hearings and public accountability for our projects at the local and district levels. We have seen that there are concerns to begin with while we practise accountability. However, all parties are satisfied after the entire exercise is over. The local and district administrations also realise that such practices actually strengthen their credibility. At the same time, the population too gains a lot of confidence. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">You have been working with the same partner, Pro Public, for over 15 years now. How do you justify this association for such a long period of time?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">Yes, we have had a very long cooperation for sure. But one has to acknowledge that Pro Public has a great deal of experience. They have been in the field for a long time and have been in many places so we have to give them credit for that. The current phase of the project with Pro Public is coming to an end this year and we haven't yet decided who will be our future partner. We believe that we need support from an independent organisation that helps the public hand to build up its credibility through public hearing. It does not necessarily have to be advocacy or accusing the administration on its weak points. It is more about building the capacity and confidence to face the public by being transparent. There is a niche for these kinds of activities in every district which makes our projects and the work of the local administration so much more effective.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">Some of your projects like Jiri Multi-Purpose Development Project have been completely abandoned. What should Nepal do to make such projects and development sustainable?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">Well, the question is not about what should Nepal do. It's rather about what should the development partners both Nepali and Foreign do. First, the projects have to respond to a real need in order to be sustainable. They need to respond to the demand by the beneficiaries and these needs may evolve over a period of time because the beneficiaries and their aspirations evolve. Second, the projects also have to be of appropriate size and be constantly adaptive. It is because the counterparts the national entities can take over some of the responsibilities of the projects in a more convincing way. Therefore, these are the two elements that help projects become sustainable. The projects are the tools to deliver certain services that need to continue. </span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">The issue of inclusion is in the forefront of development debate lately. Is this the right approach given that it would further consolidate caste as ethnic identity just to get the&nbsp; </span></strong><strong><span style="font-size: 12px;">desired benefits?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;"><img align="left" alt="thomas" border="1" height="244" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/img1(2).jpg" style="margin: 10px; padding: 10px;" vspace="5" width="400" /></span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">The benefits of social and economic development frequently do not get distributed equitably in societies that are very diverse and strongly compartmentalised. This leads to frustration and conflict. Invariably, there is an accumulation of wealth and power by those who already have it rather by the ones who don't have it. This has been experienced in many countries and it has been experienced in Nepal too.&nbsp;The other problem is that the potential of the diversity of a nation is not unleashed. Imagine a family, village or a country where all the decisions are taken only by men. For example, I can't imagine not involving my wife in decision making. She may have many skills, knowledge and competencies that I lack. The same is true for a country where a single ethnic or linguistic community is controlling all the decisions. This way, you are invariably reducing the development potential of your country to a fraction of what it could be otherwise.&nbsp;</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">Given the climate change, how do you think issues like bio-diversity can be addressed?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">The problem with climate change is that we don't really know the end effect especially in a country like Nepal where there are so many ecological zones. Some places might become drier and others wetter so there could be a lot of fluctuation. The diversity in nature is the insurance policy against change. That's why nature has been created the way it is, with a lot of diversity where one plant may die and another may survive. The diversity has to be maintained in order to adapt to the changes that we don't know about. And therefore, natural bio-diversity and agricultural bio-diversity have to be promoted very actively keeping the climate change in mind. Farmers in Nepal who live in very diverse environments can help maintain and cultivate agricultural bio-diversity that would help the country resist and be more resilient to climate change and its effects. But the community and the country as a whole has to recognise that service. It's not just the food production, it goes beyond that. This is a little complicated&nbsp; it means that you have to start thinking about environmental services by getting the farmers some kind of support that is more than just the minimum payment. <br />
	<br />
	<br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">The Swiss government is the major donor towards supporting constitution writing process but it doesn't seem to have yielded any results. What do you think is the problem with constitution writing in Nepal?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">The taxpayers of this country are the major donors to Nepal. They are the ones who pay the salaries of the parliamentarians and indirectly, the politicians. Therefore, the investment of the international community cannot be compared with the investment of the people of this country in terms of time and resources. Changing the direction and design of a country takes time. It requires a lot of focus and motivation and the need to make compromises. This is in the hands of the Nepali politicians who have to come together for an agreement and then be able to share their findings with the general population at large to achieve a consensus. The current generation of the politicians owe this to the country. The constitution in my country also took a long time. We can be here as friends, nudging and criticising but in a constructive and positive way. We certainly hope that the constitution writing process in Nepal will now move forward. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 12px;">Many people think that Swiss federalism model is appropriate for Nepal. How do you view this idea?<br />
	<br />
	<br />
	</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;">I strongly believe that Nepal needs to find its own model. What I can say though is that Swiss federalism is not about autonomy and independence. It is about how our cantons (provinces in your case) can work together building on reciprocal strengths and diversity to work in a united way for a stronger country. That requires a lot of compromises. One can never see one's own problems only. The provinces in my country need each other and I assume that it would be the same in Nepal. The policy makers can have a positive bias towards their own provinces. Previously, anyone who had a vision and was ambitious for Nepal focused on Kathmandu. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 12px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 12px;"><span style="line-height: 115%;">In the future, the people would like to be identified by their respective regions and will be looking for strengths and resource development of their own provinces. The sense of pride for belonging to a certain province will come into play which was not there earlier. It helps but you can never lose out of perspective that a province is not viable by itself and requires to be complemented by other provinces. Therefore, everyone needs to understand that Nepal, as a single entity, needs to establish credibility at the international level. <br />
	<br />
	<br />
	<br />
	</span></span></div>',
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			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="color: rgb(178, 34, 34);"><i><span style="font-size: 8pt; line-height: 120%;"><img align="left" alt="madan" border="1" height="108" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/img2(3).jpg" style="width: 90px; height: 108px;margin:10px;padding:10px;" vspace="5" width="90" />By Madan Lamsal<br />
	<br />
	<br />
	</span></i></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 10.5pt;">T</span><span style="font-size: 9.5pt;">hese days, if you encounter any crestfallen wo/man with faded pulchritude and desperate to reach somewhere sooner, s/he could easily be a banker. With the collapse of BFIs in a row, even the CEO of healthiest of these institutions is sacred to the hilt. Simply because, before one could explain the robustness of his or her institutions, things are seen going out of hand of these expert managers.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<br />
	<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;">Except those under the government raincoat, almost all BFIs are feeling the pinch of acid-rain, some term it liquidity- and others lucre-dity-driven crisis. And every crisis is a god-sent lottery to some, and so called older and large banks are now enjoying the unprecedented deposit flow when their smaller and younger fellows gasp for life.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<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 lifestyle, personality and approach of the CEOs of many of these BFIs have completely changed. They have ceased to wear tie. Harrods tweed has been replaced by Bangkok boutique. Razor sharp creases of the dress have disappeared and, instead of driving individual cars, many senior executives of an institution are seen stacked in single vehicle. They are not doing it for their security by feigning move-incognito, but all of them are putting these sincere efforts to support the Nepal Rastra Bank Governor's objectives to bring down the national inflation to a single digit. In cocktails, they hardly speak. Even if they do, they just mew. Their eyes are anxious not to bump with any guy from Baluwatar, by chance. Who knows, a prestigious banker today may be arrested by the police on the criminal charges of elbowing a central banker in a cocktail party?</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<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="laughing" border="1" height="248" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/img(5).jpg" style="margin:10px;padding:10px;" vspace="5" width="350" />Early in the morning, these CEOs dread to read the newspapers. They feel the unusual urge to pee while reading the news about the rampage and killings by wild elephants in the districts like Jhapa. They hallucinate that snores and roars of the Jhapali animals is also coming out of the Baluwatar woods, perhaps without knowing the Jhapa influence in the present day Nepali financial sector. Some CEOs are also scared that, regardless of the financial credentials of their institution, they would be chased by one powerful Jhapali to apparently to install another Jhapali in the CEOs position, in addition to a couple of peripheral advisors to add the operational cost of the purportedly crumbling institution. </span></div>
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">But there are more than one solutions to these woes of poor CEOs. First, they must confess that they didnâ€™t know any previous governor or deputy governor of the central bank to vindicate an unflinching loyalty to the present central bank leadership. Second, even if they knew some, they continuously profess that all former Rastra Bank officials including the governor were unprofessional, unqualified and dirty people; and responsible for present mess in the financial system. Also remember to communicate your allegiance to the party that made history by launching the Jhapa andolan. And, donâ€™t commit foolish mistake of visiting new bungalow of the governor worth crores as that may prove something else to his principled credentials as a true proletariat. These tips will surely help you if not your institution.<br />
	<br />
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	</span></div>',
			'published' => true,
			'created' => '2011-08-22',
			'modified' => '2012-09-16',
			'keywords' => '',
			'description' => 'These days, if you encounter any crestfallen wo/man with faded pulchritude and desperate to reach somewhere sooner, s/he could easily be a banker. With the collapse of BFIs in a.....',
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	(int) 2 => array(
		'Article' => array(
			'id' => '386',
			'article_category_id' => '47',
			'title' => 'Spirituality In Heart, Business In Mind',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div>
	<span style="color:#000;"><span style="font-size: 12px;"><img align="left" alt="suresh" border="3" height="334" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/suresh_kumar_basnet.jpg" style="width: 269px; height: 334px;margin:10px;padding:10px;" vspace="2" width="269" /></span></span></div>
<div style="text-align: justify;">
	<span style="color:#000;"><span style="font-size: 12px;">Suresh Kumar Basnet began his business with the belief that if one has the capacity and acumen for marketing, one can sell just anything. From a budding businessman in 1979 to NCC president today, he has seen success and knows it does not come easy.<br />
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<div align="center" style="text-align: center; text-indent: 0in;">
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<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><b><span style="line-height: 120%;">Suresh Kumar Basnet</span></b></span></span></div>
<div style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><span style="line-height: 120%;">President</span></span></span></div>
<div>
	<span style="color:#000;"><span style="font-size: 12px;"><span style="line-height: 115%;">Nepal Chamber of Commerce (NCC)</span></span></span></div>
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<div style="text-indent: 0in;">
	<span style="color:#000;"><span style="font-size: 12px;"><strong><i>By </i>Gaurav Aryal<br />
	<br />
	</strong></span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">Suresh Kumar Basnet stepped into the world of business with Rs 7,000 back in 1979. For Basnet, that was a big money managed all by himself to start his business. At that time, he saw demand for fancy clothes, watches, photography equipment, typewriters in the cities of the plain like Bhairahawa, Biratnagar and other places. I supplied those goods from the wholesalers in Kathmandu to these cities,he shares the story behind the inception of his business and career. Basnet gained experience and knowledge about his business with time from the people in his fraternity. He was not hesitant to shift to those goods and businesses that offered lucrative returns.</span></span></div>
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	<span style="color:#000;"><span style="font-size: 12px;">Today, Basnet is the President of Nepal Chamber of Commerce (NCC), the guardian association of Nepali industries as well as small, medium and large companies. Basnet has been in NCC for 18 years now. Beginning with the working committee member, he has climbed the ladder to the apex position. Apart from the NCC President , he is a business person heading a group of companies with interests in export and production of pashmina, textile, silver jewellery, handicraft, copper goods, gold-plated statues, carpets and mineral water among others.</span></span></div>
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	<span style="color:#000;"><span style="font-size: 12px;">At present, he directly owns a range of business enterprises including Basnyat Company Limited, Sujit Concern and Brothers, Om Shanti Pashmina Udyog and Jal Pure Drinking Water and Beverage Industry. He is also involved with Kathmandu Upatyaka Khanepani Limited (KUKL) and Sunrise Bank in different capacities.</span></span></div>
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<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><strong>Early Life<br />
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	</strong></span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">Basnet was born in Kathmandu in 1955. His family was a working class family. It was around 1960 that his family bought a piece of land in Chitwan. Young Basnet shifted to Chitwan in 1962 where he completed his school education. We had an extended family and since we were financially weak we decided to shift to Chitwan, Basnet clarifies. He adds, There I learnt to be a hard-working man. I took to farming, did household chores and saw myself being shifted from one place to another with the passage of time. He emotionally says that in Chitwan he could realise what the hardship is and what the joys are the two realities of life.<br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">Basnet proudly claims that in his student days, he was quite a good student. Apart from his studies, he was fond of playing football, volleyball, badminton and chess. He was counted as one of the best players of the district those days.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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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="color:#000;"><span style="font-size: 12px;">After graduating the School Leaving Certificate, he came back to Kathmandu with a dream of becoming a doctor. To pursue his dream, he joined Amrit Science Campus. However he was forced to take up physics as he could not study Biology in his high school in the absence of a biology teacher. Basnet largely relied on lectures as books were so rare and expensive those days. He recalls how he had to wait for months for a book in the college library. During his exam time, his fate took a different turn. He fainted while appearing for his exams. I had to leave my studies for around six months because of my illness. When I returned to college, my principal said that I have missed the course and asked me to start afresh next year,Basnet says. Meanwhile, his relatives advised him to change the subject and&nbsp;study commerce rather than waiting for the next session.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><img align="right" alt="" border="3" height="565" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/suresh_kumar_basnet1.jpg" style="margin:10px;padding:10px;" vspace="2" width="350" />Basnet quietly obeyed them and joined Public Youth Campus where he completed his ICom. He later completed his graduation from Shankardev Campus in business studies. While pursuing his business studies, Basnet somewhere felt that he should polish his entrepreneur skills and start doing something on his own.I established a firm for import-export, he shares his early days. Basnet picked up business fundamentals from his brother's friend who ran a company in Putalisadak. Basnet was around 26 when he started his business. A lot of hard work in the years that followed earned me vital business contacts that helped me in my export-import business, he reveals. At that time Basnet used to deal with the third-country goods but he claims he never dealt with cheap goods from Khasa, China. He opened an LC account to make his export-import business a formal one.&nbsp;Basnet usually dealt in items with seasonal demands like dry fruits and readymade garments during major festivals like Dashain and Tihar. Apart from that he also tried dealing with photography goods, motor parts, ball bearings and later on even in vehicles. He admits that often he had to bear losses for not having enough experience and expertise. He adds, I thought of getting into industries. I was into garments, carpet, and pashmina. In the pashmina business, I incurred losses as well as made profits over the years His markets for these products were Japan, Korea and USA. He shares, I gained experience by doing the things. I learnt the nitty-gritty of business and kept on reworking on my strategies. I always received support from my family. My better-half is just like my business partner.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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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="color:#000;"><span style="font-size: 12px;">Basnet has passed three decades in the business world. He thinks profit and loss are defined by the nature of business, time and environment, politics, dedication to work and a touch of luck. Sometimes despite hard work, enough investment and favourable time, some circumstances and luck may lead to failure,Basnet opines. Apart from profit and loss, business has taught me honesty, duty to pay taxes to the state, and to have patience and take risk, he says.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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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="color:#000;"><span style="font-size: 12px;">Today Basnet has stopped importing and focuses only on export. I am looking for ways to export our products to other countries. I am targeting the US market though recession has bruised&nbsp;its demands. However, I have not stopped exporting pashmina, silver jewellery, handicraft, copper goods, small statues and carpets, he expresses determination. Basnet is looking forward to investing in hydroelectricity too. I am also searching for feasible products that can be produced with local raw materials and which has the market prospect within Nepal like dairy products,he adds.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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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="color:#000;"><span style="font-size: 12px;">When he began his business, Basnet managed the investment from his own sources but today he feels the presence of commercial banks has eased financing for any project. About managing capital, he says he revolves the fund between industries and companies as and when required.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
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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="color:#000;"><span style="font-size: 12px;">About managing his companies, Basnet says that management works are done by dedicated staff and managers of the respective departments are given full authority. He says he does not interfere in their work&nbsp;except for some monitoring and policy guidelines. However, Basnet thinks the investor also has to play the role of a manager.</span></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="color:#000;"><span style="font-size: 12px;">Basnet believes in having friendly relationship with employees. After working for a long time, some sense of brotherhood develops among the staff,he opines. He says employees salary is based on the ratio of profit made by the company but he ensures that people working in his companies are well taken care of in all respects including financial distress.We respect honesty, dedication and hard work of employees so that they can develop a sense of ownership towards their workplace.</span></span></div>
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	<span style="color:#000;"><span style="font-size: 12px;"><strong>Family Life<br />
	<br />
	</strong></span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">Basnet feels that he struggled throughout his life alone. His sons have always stayed away from home either for their studies or for their job. But we always have a cordial relationship with each other. I have given time to my family as much as possible. Previously, we used to spend quality time together at least once a month and every winter we used to visit some places within Nepal, he revealed the way he takes out time for his family. He thinks giving time to family means giving time to self also.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
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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="color:#000;"><span style="font-size: 12px;">He is satisfied with what he has achieved so far and has nothing to regret. At the end of the day, experience that he gathered maters to him much than the the status of profit and loss accounts. As any other human being, I also thought of making money but for that I never compromised with the business ethics, he proudly says. I never lied or cheated anybody and I always paid back the loans borrowed from the banks. That gives me immense satisfaction when I look back at my career.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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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="color:#000;"><span style="font-size: 12px;">The malpractice in the name of unions that is going around is something that worries him. Basnet believes that professional working environment should not be unionised or politicised.<br />
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<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><strong>Spirituality<br />
	<br />
	</strong></span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">For the last 17 years, he has immersed himself into spiritual contemplation. He says, There is only one truth that is our soul and God. What we see with our eyes is nothing but illusion. Every morning, he meditates and ponders over spirituality for two hours. Basnet claims that NCC is also a kind of social organisation that has spent 58 years for the welfare of small, big and medium industries without any greed. He is also involved with a religious institution. I participate in some spiritual activities as religion is an integral part of our culture. My aim is to interact with the soul. I think our physical body is just like a mirage in the desert or the rope seen as a snake in dim light, he becomes saintly. </span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
	</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;">In his free time, Basnet likes to visit Chitwan and indulges in prayer sessions. I know that exercise is needed to keep myself healthy but I have not been successful to manage time for it. But I do light exercises related to breathing and limbs every day for around half an hour, he revealed. I have some health problems but due to my spiritual inclination, they have not caused many problems to me, he claimed. Apart from that, he likes reading spiritual books, economic news and articles, occasionally watch family and social movies and TV channels like Discovery, National Geographic that air new and interesting things. He admits that he spends more time in spiritual contemplation. He feels his body has grown too old to indulge in any sports now.</span></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="color:#000;"><span style="font-size: 12px;"><br />
	<br />
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<div style="text-align: justify;">
	<span style="color:#000;"><span style="font-size: 12px;"><span style="line-height: 115%;">Basnet is thinking of taking retirement at the age of around 64 but he is not fanciful about his life after retirement. He does not dream of visiting new places, go swimming or golfing. He plans to immerse in his quest for spirituality. My philosophy is that being a human being, we are meant to find out who we are. So, I will also try to internalise the self, he declares.</span></span></span></div>
<div>
	<span style="color:#000;"><span style="font-size: 12px;"><br />
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	</span></span></div>
<div>
	<span style="color:#000;"><span style="font-size: 12px;"><strong>Personal Side<br />
	</strong></span></span></div>
<ul>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Loves wearing comfortable clothes that matches the personality</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Believes in brand of intellect than the brand of clothes</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Meditates for at least 45 minutes to two hours every morning </span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Loves listening to hymns</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Likes reading spiritual books</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Occasionally watches movies</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;">&nbsp;&nbsp; Adores interesting programs aired on Discovery, National Geographic and Animal Planet</span></span></li>
	<li>
		<span style="color:#000;"><span style="font-size: 12px;"><span style="line-height: 115%;">&nbsp;&nbsp; Spiritual by heart<br />
		<br />
		</span></span></span></li>
</ul>',
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			'created' => '2011-08-10',
			'modified' => '2012-09-17',
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			'description' => 'Suresh Kumar Basnet began his business with the belief that if one has the capacity and acumen for marketing, one can sell just anything. From a budding businessman in 1979 to NCC president today......',
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	(int) 3 => array(
		'Article' => array(
			'id' => '385',
			'article_category_id' => '52',
			'title' => 'A Volte-face On Hydropower Development July 2011',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">I</span><span style="font-size: 9.5pt;">n the mid-June, Employees Provident Fund (EPF) announced its plan to invest Rs 15.5 billion for four medium-scale hydro-power projects. These projects included 100 megawatt Rasuwagadhi, 120 MW mid-Bhotekoshi, 14.6 MW upper-Syangden and 42.5 Syangden hydropower. All these projects are constructed by Chilime Hydropower Company at the cost of Rs 32.11 billion. The EPF commitment is almost half of the estimated cost. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<span style="font-size: 9.5pt;">In another development, government began its exercise to establish Hydropower Development and Investment Company, so far the largest development bank in Nepal for the purpose. This new company aims to generate at least Rs 20 billion as equity, mainly from the government and the public sector enterprises (PSEs), again, from the like of EPF.</span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<span style="font-size: 9.5pt;">There is no denying the fact that the country is in desperate need of resources to develop the hydropower, the sooner the better. And, also, Nepal must develop adequate hydropower projects not only to meet its ever growing energy needs but also to harness the water power that is available in abundance within the country.<br />
	<br />
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<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="386" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/1.jpg" style="margin:10px;padding:10px;" vspace="10" width="350" /></span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<br />
	<span style="font-size: 9.5pt;">But, these needs do not necessarily justify the recent government adventurism to manage resources for its development. Both, the EPF investment and setting-up of a new bank has two things in common. One, the government</span><span style="font-size: 9.5pt;">is only looking into the option of government-guided development of the sector. It is also because the EPF investment cannot be termed anything else as it is the fully government owned pension fund with almost monopoly in the market. And the proposed new entity has also proposed to incorporate rich PSEs alone. Second, in both the processes, possible involvement, participation and investment of the private sector have been completely ignored. </span></div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<br />
	<span style="font-size: 9.5pt;">This is exactly the unbecoming for Nepal's hydropower development. On the one hand, there is already a debate on what degree of flexibility the EPF and the like PSEs should enjoy in diversifying its investment portfolio. And on the other, the question is if such collusion of government agencies (as Chilime is also government undertaking) alone could actually contribute to the hydropower development and solve the country's energy crisis.<br />
	<br />
	More serious issues surround the proposed new investment bank. Since it has precluded the private sector since its conceptualisation, its proposed Rs 20 billion equity funding is sure to prove too little to meet the financial resource demand for hydropower development. This amount is only enough to develop 100 to 150 MW of power at the most. Besides, this entity cannot be envisaged to take-up the retail banking to mobilise additional resources. At best, the resource gathered by this bank could be mobilised by other PSEs like Nepal Electricity Authority, nothing more.<br />
	<br />
	</span></div>
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	 </div>
<div>
	<span style="font-size: 9.5pt; line-height: 115%;">The only right course in this regard would have been the private sector leadership in investment, development and management of<i> all</i> hydropower projects. The government surely could have facilitated with policy and resources instruments it had. But, now things seem to be moving in completely opposite direction. And, the money dammed in by the government authorities might not be able to flow down so as to generate power, at least not in substantial scale and sustainable way. <br />
	<br />
	<br />
	</span></div>',
			'published' => true,
			'created' => '2011-08-10',
			'modified' => '2012-08-31',
			'keywords' => '',
			'description' => 'In the mid-June, Employees Provident Fund (EPF) announced its plan to invest Rs 15.5 billion for four medium-scale hydro-power projects. These projects included 100 megawatt.......',
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	(int) 4 => array(
		'Article' => array(
			'id' => '384',
			'article_category_id' => '34',
			'title' => 'CPVC Pipes From Panchakanya Plast(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14pt;">P</span><span style="font-size: 9.5pt;">anchakanya Plast Pvt Ltd, a Panchakanya Group company is introducing Chlorinated Poly Vinyl Chloride (CPVC) Pipes in the market soon. Harka Bahadur Thapamagar, the Sales Manager of the company said that the company has already begun the production of these pipes. â€œThe manufacturing of mould needed for making the pipes is in the process and we will launch our product within a month,â€ he said. </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;">According to Thapamagar, CPVC pipes are better alternatives to GI pipes for drinking water supply as the former are rust free and lightwieight to transport to remote locations. Panchakanya Plast has its factory near Bhairahawa.</span></div>
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Thapamagar claimed that Panchakanya is the first company to produce CPVC pipes in Nepal. These pipes are appropriate to use with both hot and cold water and can last up to 50 years. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">LIC (Nepal) Implements RDBMS</span></strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="">L</span><span style="font-size: 9.5pt;">ife insurance Corporation (Nepal) Ltd has gone a step further in its IT initiatives by introducing web-based policy administration system, states a press release of the company. In 2008, LIC (Nepal) became the first Life Insurance Company to network all its branches across Nepal, enabling effective inter-branch communication system. By using RDBMS (Relational Data Base Management Systems) with the web-based front end architecture now, the company has achieved centralisation of its database, adds the press release promising that the new development will make servicing more effective, ensure real time transaction updation and also allow remote users to have access to latest data. This will also enable the company in the near future to provide online payment facility and 24x7 services to its customers, it adds.</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;">The entire package has been developed in-house by the LIC of India using the latest technologies in the market and is very user friendly, according to the company. The package will also have the feature of maintaining customer ID to provide services to all the policies of one customer in a single window.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">The module came into operation from 5th May 2011. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">New Industries in Patan Industrial Estate</span></strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">hree new industrial units are being established in Patan Industrial Estate (PIE). The new units are added are Shakti Food Pvt Ltd, Siddhilaxmi Plastic Industry and Nepal Commercial Industry. </span></div>
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	<span style="font-size: 9.5pt;">Prem Nepal, the Manager of Patan Industrial Estate said that two other industrial units are planning to expand capacity while another one plans to revive its operation.</span></div>
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	<span style="font-size: 9.5pt;">Siddhilaxmi is investing Rs 10 million while Rs 100 million is being invested in Shakti Food.&nbsp;Nepal Commercialâ€™s investment has not been finalised yet, according to Pushkar Paudel, the Manager of the company which is currently the authorised distributor of Indian furniture brand â€˜Godrejâ€™ in Nepal. The PIE plant of Nepal Commercial will be assembling furniture. </span></div>
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	<span style="font-size: 9.5pt;">Shakti Food plans to introduce â€˜Martinâ€™ brand of ice-cream in the market and will have a daily production capacity of 20,000 litres. Besides ice-creams, it will also produce other dairy products.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Shakti Shrestha, the operator of Siddhilaxmi Plastic industry informed it will start producing plastic bottles within the next couple of months. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Infrastructure Bonds in USD </span></strong></span></div>
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	<span style="font-size: 12pt;">N</span><span style="font-size: 9.5pt;">epal Rastra Bank (NRB) is mooting a policy to allow purchase of big infrastructure project bonds by paying US dollars. The NRB has begun internal discussions for formulating such policy so as to attract foreign investment in big projects. A source at the NRB revealed that the policy is being prepared to attract foreign investments in hydroelectricity and other big projects.</span></div>
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	<span style="font-size: 9.5pt;">People who buy such bonds by paying US dollars will get the interest in US dollars. Similarly, the principal amount too will be returned upon maturity in US dollars. </span></div>
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	<span style="font-size: 9.5pt;">With this policy, also the foreigners can buy bonds issued by Nepal. But some legal formalities have to completed before such bonds can be issued. For example, the existing law has to be amended, said a source in the NRB. </span></div>
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	<span style="font-size: 9.5pt;">These bonds can be bought also by the NRNs, companies and persons having regular income in US dollars. However, the NRB will be barred, according to the surce, from buying such bonds though it is allowed to buy foreign bonds with the foreign currency reserve it holds. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The big infrastructure projects that require huge capital can issue such bonds through merchant banks, according to the proposal.&nbsp;A number of the promoters of large projects have asked the NRB for a provision to allow foreign investors buy their bonds due to the scarcity of capital within the country to invest in such big projects. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Minimum Wage Controversy </span></strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 13pt;">T</span><span style="font-size: 9.5pt;">he Ministry of Labour and Transport Management has unilaterally fixed the minimum wage amidst opposition from Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and three major trade unions.</span></div>
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	<span style="font-size: 9.5pt;">Krishna Hari Pushkar, the spokesperson at the ministry said the minimum wage was fixed considering two previous agreements made on March 24 and April 15. He said, â€œMinimum wage has been fixed taking into consideration the concerns of both employers and employees.â€</span></div>
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	<span style="font-size: 9.5pt;">The minimum wage has been increased from Rs 4,600 to Rs 6,200. Similarly, the daily wage has been increased from Rs 190 to Rs 231. </span></div>
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	<span style="font-size: 9.5pt;">Pashupati Murarka, the Vice President of FNCCI said the employers wonâ€™t agree to any agreement published in Nepal Gazette that goes against the one made on March 24. He alleged that the notice was published in the gazette without consulting the employers. </span></div>
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	<span style="font-size: 9.5pt;">An official at the FNCCI alleged that the minimum wage has been fixed as per the demand of Madhesi trade unions since the Labour Minister represents the Madhesi Jana Adhikar Forum.</span></div>
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Bishnu Rimal, the President of General Federation of Nepalese Trade Unions (GEFONT) said that new agreements should not be implemented before dismissing the old ones. He said that they are currently following the agreement made on March 24. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Bluebird Mart Inaugurated</span></strong></span></div>
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	<span style="font-size: 15pt;">B</span>luebird Shopping Complex has come to operation in a changed form. Now called&nbsp;Bluebird Mart, it has added a new departmental store and two world-renowned chain restaurants. The Mart was inaugurated on May 17 by Miss Nepal Sadikshya Shrestha. KFC and Pizza Hut restaurants are scheduled to open soon, according to Binod Tuladhar, the Managing Director of Bluebird Mall.</div>
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	He also informed that the Yellow Chilly, an Indian chain restaurant will also be added to the property later. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Five-star Hotels Register 80 per cent Occupancy </span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;"><span style="font-size: 14px;">h</span>e occupancy rate of the five-star hotels in the first four months of Nepal Tourism Year (NTY) 2011 has touched 80 per cent. Raju Bikram Shah, the Senior General Manager of Hotel Shangri-La said, â€œHotel occupancy in the first four months of this year has increased by 10 per cent when compared with the same period last year.â€ </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;">With the mountaineering season picking up momentum, some hotels have registered more than 80 per cent occupancy for April. However, Shah said the hotels should have 100 per cent occupancy due to NTY programmes. Encouraged by the positive response for the first four months, hotel entrepreneurs are hopeful that occupancy will remain high in the coming months as well.</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;">According to Bharat Joshi, the Marketing Director of Hotel Yak and Yeti, the occupancy rate increased with the trekking and mountaineering season. Hotel entrepreneurs further expect growth in tourist arrivals with the advent of pilgrimage season for Kailash-Mansarobar.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">In April, Hotel Shangrila had 87 percent occupancy, while Hotel Yak and Yeti had 79 percent, Hotel Soaltee 78 percent and Hotel Fulbari around 80 per cent. Five-star hotels claim the tourist flow increased because of their promotional efforts in the international market. They added that they spend Rs 400 million annually for overseas tourism promotion.&nbsp;</span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">NTBâ€™s â€˜Border City Sales Missionâ€™ </span></strong></span></div>
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	<span style="font-size: 14px;">N</span>epal Tourism Board (NTB) has begun a tourism promotion campaign â€˜Border City Sales Missionâ€™ in the Indina cities close to the Nepal border. According to NTB, sales mission has been started in Indian cities of Kanpur, Varanasi and Lucknow. Lila Bahadur Bania, a Manager in the NTB said that the campaign was started as the Indian tourists were not coming to Nepal in large numbers. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Petroleum Import Exceeds Total Export </span></strong></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he revenue generated from Nepalâ€™s export cannot even buy petroleum products required for the country, according to the recent trade data. Nepal exported goods worth Rs 47.98 billion by mid-April of the current fiscal year while the country spent Rs 50.26 billion for importing petroleum products during the same period, show the data released by the countryâ€™s trade monitoring body Trade and Export Promotion Centre (TEPC). </span></div>
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	<span style="font-size: 9.5pt;">By mid-April of last fiscal year, petroleum imports were worth Rs 35.22 billion.</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;">Nepal had to spend more for petroleum products due to two reasons. One was the unrest in the Middle-East that led to an increase in price of the petroleum in the world market. Second was the increase in the demand within the country due to lengthened power outage due to failure to increase power generation from the countryâ€™s hydropower plants. </span></div>
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	<span style="font-size: 9.5pt;">In the same period of the current fiscal year, Nepal has imported goods worth Rs 287 billion. So, Nepalâ€™s trade deficit has reached Rs 239 billion in the first nine months of the current fiscal year, according to TEPC.</span></div>
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Even though the imports of petroleum products and iron and steel have increased, there is a decrease in the import of machineries, electronics, vehicle spare parts and gold. In the first nine months of the last fiscal year, gold worth Rs 24.61 billion was imported but it has decreased to Rs 4.62 billion this year, a decline of 87.7 per cent. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>',
			'published' => true,
			'created' => '2011-08-08',
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			'description' => 'Panchakanya Plast Pvt Ltd, a Panchakanya Group company is introducing Chlorinated Poly Vinyl Chloride (CPVC) Pipes in the market soon. Harka Bahadur Thapamagar, the Sales Manager of the company said......',
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	(int) 5 => array(
		'Article' => array(
			'id' => '383',
			'article_category_id' => '34',
			'title' => 'EU Ban Affects Ayurved Export(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">epalâ€™s export of Ayurvedic medicines to Europe has declined following a ban on their import by European Union (EU) effective from May 1 citing public health risk. </span></div>
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	<span style="font-size: 9.5pt;">Dr Rishiram Koirala, the President of Ayurvedic Doctorsâ€™ Association-Nepal (ADAN) said the ban has proved really bad as it came exactly when the export of Nepali Ayurvedic medicines was on the rise. He complained that the EU ban also affected export to other countries. Koirala claimed that the ban was imposed to promote internal production of EU,not due to any threat to health.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Toya Narayan Gyawali, the General Secretary (Check â€¦. As there can be no such post as Gen Sec In a Ministry) at the Ministry of Commerce and Supplies said the government has not received any formal notice on the restriction. He said, â€œIf the restriction has indeed been imposed, we will try to solve the problem as soon as we receive a formal notification.â€ Prior to the ban, there was growing demand of ayurvedic medicines in eight countries including Austria and Sweden. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Rinchen Teaching Hospital in Dang</span></strong></span></div>
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	<span style="font-size: 14px;">C</span><span style="font-size: 9.5pt;">onstruction is going on for Rinchen Teaching Hospital at Sisahania of Dang with an investment of Rs 8 billion. According to the executive committee of the hospital, the initial phase of work has been completed. Gopal Prasad Bhusal, the Chairman of the committee claimed the hospital would be one-of-its-kind among the non-profit hospitals in Nepal.</span></div>
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	<span style="font-size: 9.5pt;">For the first phase, Rs 60 million was allocated while Bhusal said Rs 150 million may be required for designing and other works in the second phase. â€œIn the third phase, the entire physical construction would be completed at an investment of Rs 6 billion,â€ said Bhusal. Another Rs 2 billion will be invested to make the hospital operational. Out of the total investment, Rs 200 million will be invested for information technology.</span></div>
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	<span style="font-size: 9.5pt;">Between 60 to 80 percent of the total cost will be financed by Ranag Tulku Rinchen Rinpoche, the Protector of the hospital, informed executive committee member Tilak Bhandari. The rest of the cost is to be financed from the government, local bodies and local donors, he added. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">According to Bhusal, the 700 bed-hospital plans to operate also air ambulance service in the future. The hospital will educate 100 MBBS, 50 MD, 200 BSC and 200 Nursing students every year. It will also conduct academic classes on meditation, yoga and spiritual knowledge. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">NRBâ€™s Forced Merger By-laws</span></strong></span></div>
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	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">epal Rastra Bank (NRB) has issued a merger by-law that allows NRB to order a bank and financial institutions (BFIs) to merge if it is found weak in its vital indicators. The by-law also offers a number of incentives to encourage mergers, said Bhaskar Mani Gyawali, the NRB Spokesperson.</span></div>
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	<span style="font-size: 9.5pt;">The BFIs opting for mergers will be waived off several conditionalitis related to upgradation and operational area expansion. The by-laws also relax the provision on mandatory â€˜complete three yearâ€™ rule in adding number of branches in the districts allowed to operate. </span></div>
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	<span style="font-size: 9.5pt;">The new regulation incorporates the provision of forceful merger, allowing the central bank to instruct two or more BFIs to merge if it deems appropriate. Similarly, the new rule has pledged relaxation on capital structure, shareholding limit for promoters, credit-deposit ratio, borrowing limit for promoters and deprived sector lending, among others.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The central bank can instruct or suggest BFIs to merge if representatives of the same group, firm or company are found holding positions in the board of directors of more than one BFIs. It can also do so if the BFIsâ€™ non-performing loans exceed five per cent of the total loan portfolio for three consecutive years and if the BFIsâ€™ independent operations are causing negative impact on the banking system. The NRB can also ask those&nbsp;BFIs to merge to which the central bank has taken three corrective actions in a row or even in a case where it thinks the merger would strengthen the overall banking system. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Ncell Reduces 3G Tariff</span></strong></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">P</span></span><span style="letter-spacing: 0.15pt;">rivate sector telecom operator Ncell has come up with a new scheme with reduced tariff for high-speed 3G Internet. Under the scheme, the company offers 500 Mb data for Rs 399 (or 80 paisa per Mb) down from earlier Rs 499. Similarly, 1000 Mb is now priced at Rs 699 (or 70 paisa per Mb). The Internet users not subscribing to the new packages will have to pay Rs 2 per Mb. </span><span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Banksâ€™ Hydropower Investment Reach Rs 16 billion </span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he investment of Nepali Banks and Financial Institutions (BFIs) in hydro electricity projects has reached almost Rs 16 billion during the period of the last decade. Chilime Hydropower under the Public-Private Partnership model is the first project to have investment from Nepali banks. Himalayan Bank led the consortium of bankers to invest in this project. However, Indrawati is the first hydropower project promoted entirely by the private sector to receive bank investment.</span></div>
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	<span style="font-size: 9.5pt;">Among the other projects with bank finance are Piluwa, Sunkoshi and Sanima Mai. While the former two are small projects, Sanima Mai is relatively big with 15.6 MW and it has investment from a consortium of 11 BFIs. Until now, the BFIs have invested in this sector only through consortium.</span></div>
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	<span style="font-size: 9.5pt;">So far, a total of 21 banks and finance companies have invested in hydroelectricity projects. Clean Energy Development Bank and Jyoti Development Bank say they are specialised in investing in the energy sector and thus increase investment in this sector in the future.&nbsp;</span></div>
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	<span style="font-size: 9.5pt;">However, the investment of banks in hydroelectricity is a mere four per cent of the total deposits of the commercial banks. Recently, Nepal Rastra Bank changed the rule and allowed BFIs to invest up to 30 per cent of their loan outstanding in hydropower projects. Because the investment in this sector from the banks is very low compared to what they are allowed to, the private sector energy entrepreneurs have started arguing for fixing a minimum amount that the BFIs must invest in this sector. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Bankers say they are reluctant to invest in energy as it requires long gestation period and the returns are comparatively higher in other sectors. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Registration of Hydropower Companies Made Easy</span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he Indistrial Promotion Board under the Ministry of Industry has changed the company registration rule for potential hydropower developer. According to the change, the the company registration for hydropower development is divided into two phases, says a souyrce at the Ministry of Industry. </span></div>
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	<span style="font-size: 9.5pt;">With this there is no capital requirement specified for the company that wants to just conduct the feasibility study on the proposed project. But once the company completes the feasibility study and wants to develop the project, it must have its authorised capital at least Rs. 100 million per megawatt of the generation capacity of the proposed project. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The earlier provision required the company to have at least Rs. 100 million as authorised capital even while asking for the permission to conduct feasibility study. This had restrained many developers as they have to pay a high amount as the company registration fee. The Registrar of Companies charges higher registration fee for higher capital. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Cash Rich Govt Institutions asked to Buy Shares in Listed Companies</span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he high-level financial sector reforms coordination committee has decided to issue directives to state-owned institutions to buy shares of companies listed in the stock echange. Dr Surbir Paudyal, a Member of the committee and Chairperson of the Securities Board of Nepal (SEBON) said, â€œA decision has been made to allow Employees Provident Fund and Citizens Investment Trust to invest in the shares of companies listed in the stock exchange.â€</span></div>
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	<span style="font-size: 9.5pt;">It has also been decided to review the policy on loan from the banks against the security of share certificates and to explore ways to reduce cost of investment in shares. The major costs of investment in shares includeinterest on loan against the security of share certificates, share brokersâ€™ commission, capital gains tax and charges levied by Nepal Stock Exchange.</span></div>
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	<span style="font-size: 9.5pt;">Under the existing policy, the banks are allowed to lend against the security of share cerrificates up to the amount of 60 per cent of the market value of the share and they have to make a margin call when the market price of the share so received as security falls more than 10 per cent.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The meeting also decided to immediately begin induction of new brokers, start operation of mutual fund and establish credit rating agency. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>',
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			'description' => 'Nepalâ€™s export of Ayurvedic medicines to Europe has declined following a ban on their import by European Union (EU) effective from May 1 citing public health risk.',
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		'Article' => array(
			'id' => '382',
			'article_category_id' => '34',
			'title' => 'Korean Company Sells Stake In Himalayas Spring Water(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;">T</span>The Korean Company that owns Himalayas Spring Water situated in Rasuwa has decided to sell half of its shares for Rs 200 million to Muktishree Pvt Ltd, a Nepali company.â€œThe Korean Company has now decided to have a separate Nepali company as its strategic partner,â€ informed Ganga Dhital, the General Manager of the company.</div>
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	Though the decision has been made already, the formal transfer of shares is yet to materialise. The Department of Industry has also given its approval for the transfer of ownership. After the approval from the Office of the Company Registrar and Nepal Rastra Bank, the Korean company will get Rs 200 million from the buyers. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">New Model for Monetary Survey </span></strong></span></div>
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	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">epal Rastra Bank (NRB) is planning to carry out a monetary survey with a new and updated framework which is under preparation at present. An official at the NRB said the old framework is limited to a few commercial banks in its coverage as it was developed when the number of banks and financial institutions in the country was very small and the level of monetization in the economy was very low. With the growth in number of BFIs and much higher level of monetization of the economy, the old framework cannot correctly represent actual situation.</span></div>
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	<span style="font-size: 9.5pt;">In the absence of clear demarcation of their functions in the law and rules, the commercial banks, development banks and finance companies carry out almost similar activities making it necessary to include them all in the scope of monetary survey to get the true picture of money supply in the economy. However, the existing system of monetary survey does not include the activities of development banks and finance companies.&nbsp;</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Deependra Bahadur Kshetry, Former Governor of NRB suggested including cooperatives as well in the survey as they too are doing similar activities as those of the banks. He also suggested that the monetary survey should include also the quantity of Indian currency in circulation in Nepal. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">49th IHRA Conference in Nepal </span></strong></span></div>
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	<span style="font-size: 14px;">I</span><span style="font-size: 9.5pt;">nternational Hotel and Restaurant Association (IHRA) has selected Nepal as the venue for its 49th Congress scheduled to be held from December 1 to 3. Dr Ghassan AÃ¯di, the President of IHRA officially informed Prime Minister Jhala Nath Khanal about the schedule recently.</span></div>
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	<span style="font-size: 9.5pt;">The IH&amp;RA has its head office in Geneva and has 1.1 million members around the globe representing 300,000 hotels and 800,000 restaurants, informed AÃ¯di.</span></div>
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	<span style="font-size: 9.5pt;">IHRA had held its Congress in Nepal once before in 1968.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Nepal bagged the opportunity to organise the coming event winning over the bids of Argentina and Switzerland. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<strong><span style="font-size: 16px;"><span style="color: rgb(51, 51, 153);">Life Insurance Bonus to Go Down</span></span></strong></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he life-insurance policy holders should now be prepared for reduced bonus on their savings as the regulator of the sector, the Insurance Board (IB), has instructed the insurance companies to change their method o fcalculatin the returns from their investment for the bonus purpose. </span></div>
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	<span style="font-size: 9.5pt;">&nbsp;According to a recently issued directive from the Board, the actuaries of the insurance companies will now take maximum of 6 percent as the return from their investment. However, if the actual return in any of the last three yearâ€™s period covered by the acturial valuation is less than 6 percent, they are required to take that lower figure for the acturial valuation. </span></div>
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	<span style="font-size: 9.5pt;">The insurance companies transfer such amount from their profit and loss account to the fund from where they can distribute bonus to the policyholders and dividend to the shareholders. Any surplus after such fund is provided for will be transferred to insurance fund which is to be treated as reserve from which neither bonus nor dividend canbe distributed. </span></div>
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	<span style="font-size: 9.5pt;">This means the bonus rate on the savings of the life insurance policy holders will be less than 6 percent. At present some of the insurance companies are paying bonus at as high a rate as over 7 percent. </span></div>
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	<span style="font-size: 9.5pt;">Shekhar Kumar Aryal, the Spokesperson of the Board said, â€œThis provision has been made to ensure the longevity of the insurance company.â€</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Insurance company sources complain that this new rule will attract the people away from life insurance to depositing their savings in banks. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Community-led Micro Hydros</span></strong></span></div>
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	<span style="font-size: 14px;">T</span>he Society of Rural Empowerment based in Damauli has supported to install 112 micro hydro projects in eight districts that generated a total of one megawatt of electricity. Rs 53.2 million was invested in these projects. Sarita Gurung, President of the Society said the governmentâ€™s Alternative Energy Promotion Centre and Danish International Development Agencyâ€™s (DANIDA) programme on alternative energy provided financial support to the projects.</div>
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	As part of this programme, 47 projects were constructed in Dhading, 21 each in Gorkha and Makwanpur and 12 in Lamjung districts. Similarly, four each in Nawalparasi and Manang, three in Tanahu and one project in Rasuwa were constructed. According to the Society, 10,800&nbsp;households benefitted from the programme. Projects were developed in areas not linked with national transmission line and having little chance of linkage anytime soon. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Exporters Deprived Promised Incentive</span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he exporters are still denied the incentives they were promised by the government while presenting the budget for the current fiscal year. The reason behind this is the change in the government due to which there has been delay in getting approval from the council of ministers on the procedural guidelines prepared for this purpose. </span></div>
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	<span style="font-size: 9.5pt;">According to Toya Narayan Gyawali, a Joint Secretary in the Ministry of Commerce and Supplies, the guidelines were presented to the Council of Ministers about four months ago. But the approval was delayed as the government changed in the meanwhile. </span></div>
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	<span style="font-size: 9.5pt;">The government has made a provision in the current yearâ€™s Finance Bill to give the exportes a cash incentive of two to four per cent of the export value after the foreign currency payment is received against the export. The government has allocated Rs 250 million for this purpose.</span></div>
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	<span style="font-size: 9.5pt;">Udaya Raj Pandey, the President of Garment Association Nepal (GAN) expressed frustration that the government failed to provide the promised incentive even though the time for a new budget is approaching so near. â€œThe failure to implement the promise has irritated the exporters,â€ he said. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Pandey also said that since the government levies tax as soon as the budget is announced, it should show similar promptness also in implementing the promise of providing incentives.&nbsp;</span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">PE Management Board Proposal @ Cabinet </span></strong></span></div>
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	<span style="font-size: 9.5pt;">The Ministry of Finance has submitted a proposal to the Cabinet Secretarieat for the formation of the Public Enterprises Management Board as promised in the budget announcement of the current fiscal year.&nbsp;</span></div>
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	<span style="font-size: 9.5pt;">Lok Darshan Regmi, a Joint Secretary at the Ministry of Finance said the board will coordinate and facilitate the activities of the public enterprises. </span></div>
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	<span style="font-size: 9.5pt;">However, the economists and management experts have termed this as a measure to avoid privatisation of public enterprises. In their view, this step would increase financial load on the PEs on the one hand and create one more bureaucratic hurdle in their operations. </span></div>
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	<span style="font-size: 9.5pt;">Dr Bimal Koirala, the Former Chief Secretary of the government said, â€œIt would be better to privatise the PEs than to form this board.â€</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The government has made a total loan investment of Rs 79.34 billion in these corporations so far. This year alone, Rs 16.19 billion was allocated in the budget for the 36 operational corporations. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>',
			'published' => true,
			'created' => '2011-08-08',
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			'description' => 'TThe Korean Company that owns Himalayas Spring Water situated in Rasuwa has decided to sell half of its shares for Rs 200 million to Muktishree Pvt Ltd, a Nepali company.â€œThe Korean Company has........',
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	(int) 7 => array(
		'Article' => array(
			'id' => '381',
			'article_category_id' => '34',
			'title' => 'Ad And Media Expo Concludes(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12px;">T</span>he three-day Ad and Media Expo 2011 jointly organised by Advertising Association of Nepal, Alpabiram Pvt Ltd and Direction Nepal Pvt Ltd concluded on April 30. The expo organised to bring together the advertising and media industry, advertisers, clients, media owners and buyers was visited by 22,800 people. The organisers said the expo will be held next year as well.<span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Eleven New Hotelsfor NTY</span></strong></span></div>
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	<span style="font-size: 14px;">I</span><span style="font-size: 9.5pt;">n the first four months of Nepal Tourism Year (NTY) 2011, 11 tourist-standard hotels have been added. According to Shambhu Prasad Koirala, the Officer at the Hotel Department of the Ministry of Tourism and Civil Aviation (MoTCA) said new hotels were registered in the beginning of the NTY expecting good returns.</span></div>
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	<span style="font-size: 9.5pt;">â€œAs the registration procedure does not require investors to reveal the amount of capital investment, people unwilling to divulge their liquid assets are attracted to invest in the hotels,â€ said Koirala. Among the newly registered hotels, eight are in Kathmandu and rest three outside of the Valley.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">&nbsp;In 2010, 39 new hotels were added among which eight were three-star, two onestar and 29 tourist-standard. A total of 777 hotels have been registered with MoTCA so far. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Government Drafting Railway Law </span></strong></span></div>
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	<span style="font-size: 14px;">T</span><span style="font-size: 9.5pt;">he government is drafting a railway law to provide a legal framework for facilitating the construction of railway lines and operation of railway services. According to the Ministry of Commerce and Supplies (MoCS), the law is expected to be promulgated in the fiscal year 2011-12. A four-member team led by MoCS Joint Secretary Toya Narayan Gyawali is drafting the law.</span></div>
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	<span style="font-size: 9.5pt;">Matrika Prasad Marasini, a Undersecretary at the Law and Decision Implementation Section said, â€œIn the absence of such a law, the railway services in operation in Janakpur and Birgunj dry port are regulated by Indian Railways. After the law comes into effect, they will be regulated by Nepal Railways.â€</span></div>
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	<span style="font-size: 9.5pt;">According to the draft of the law being prepared now, a separate unit under the Ministry of Labour and Transport Management will be set up to coordinate railway issues.&nbsp;The government may also form a railway board under the proposed law.</span></div>
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	<span style="font-size: 9.5pt;">Currently Nepal has railway services operating on 29-kilometres stretch of Janakpur-Jayanagar. Similarly, there is a structure of railway upto Amlekhagunj from Raxaul though the service on this area is available only upto the Birgunj Dry Port from Raxaul. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The Ministry of Physical Planning and Construction has set a target to develop 4,000 kilometres of railway tracks in Nepal in the next 20 years. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Six Sigma Yellow Belt Certification </span></strong></span></div>
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	<span style="font-size: 14px;">S</span>ix Sigma Yellow Belt Certification Training conducted by Growth Sellers, a human resource company, concluded on May 15. During the two-day programme, Dr R S Chalapathi from the India-based Institute of Sigma Learning trained 35 senior managers from various companies. Six Sigma is a modern management tool that helps to lower cost and increase productivity. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">CG sponsors RCT</span></strong></span></div>
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	<span style="font-size: 14px;">C</span>G Electronics, a wing of Chaudhary Group (CG) will provide Rs 500,000 as sponsorship amount to Ranipokhari Corner Team (RCT) for a year. The two parties signed an agreement to this effect on May 12. For the contract period, RCT players will wear the jerseys during matches bearing the LG Mobile logo. .</div>
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	Ramesh Shrestha, the General Manager of CG Electronics and Bijay Manandhar, the President of RCT signed the agreement. Shrestha said such sponsorships by business houses will help develop professionalism in in Nepali football. Manandhar said the sponsorship has provided a great financial relief to the team, for this year. CG has been sponsoring the education and sports sectors for a few years now. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">SPI Acquires Worldlink</span></strong></span></div>
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	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">Software Paradigms International Group (SPI), an Atlanta-based company providing technology service and financial solutions, has acquired Worldlink Technologies, a Nepali software company. According to a statement issued by Worldlink, the company will now be known as SPI Nepal. The current Worldlink CEO Yajurendra Shrestha will head the new company as well. </span></div>
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	<span style="font-size: 9.5pt;">Established in 2001, Worldlink has been involved in software development related to human resource, e-governance and social security. Apart from domestic customers, the company also works with the government of Orissa, India and a&nbsp;Delhi based company, Invest India Micro Pension Services. </span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">SPI entered Nepal after establishing footholds in Europe, Asia, North America and Australia. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>',
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			'description' => 'The three-day Ad and Media Expo 2011 jointly organised by Advertising Association of Nepal, Alpabiram Pvt Ltd and Direction Nepal Pvt Ltd concluded on April 30. The expo organised to bring together the advertising.....',
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	(int) 8 => array(
		'Article' => array(
			'id' => '380',
			'article_category_id' => '34',
			'title' => 'Financial Closure Of Upper Tamakoshi(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;">N</span><span style="font-size: 9.5pt;">epal Telecommunications Corporation (NTC) has agreed to finance Rs 6 billion to construct the Upper Tamakoshi Hydropower Project. A 456 megawatts hydroelectricity project is financed by domestic investors and being developed for an estimated cost&nbsp;of Rs 35.29 billion. </span></div>
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	<span style="font-size: 9.5pt;">Kanhaiya Lal Gupta, the Deputy Managing Director of NTC and Mrigendra Bahadur Shrestha, the Project Director of the Upper Tamakoshi Hydropower Limited (UTKHPL) signed the agreement.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">Similarly, Employees Provident Fund has been investing Rs 10 billion, while Citizenâ€™s Investment Trust and NTC have put Rs 2 billion and Rs 6 billion respectively for the project. The remaining Rs 11.8 billion will be generated by the government. The project, to be completed in 2015, has 70 per cent investment financed by loans and the rest 30 per cent from share capital. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.15pt;">n</span></div>
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	<strong><span style="font-size: 16px;"><span style="color: rgb(51, 51, 153);">Samitivej to Manage Grande Services </span></span></strong></div>
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	<span style="font-size: 14px;">G</span>rande Hospital Nepal and Samitivej Hospital Thailand have reached an agreement for service management of the hospital. Dr Roop Jyoti, the President of Grande and Reymond Chong, the CEO and Managing Director of Samitivej signed an agreement to this effect recently in Kathmandu.</div>
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	Grande Hospital, being constructed by CE Construction at Tokha, will have a capacity of 150 beds in a 14-storied building. The hospital plans to offer international standard health facilities at a low cost. Being constructed in a 210,000 square feet area, the building will be disabled-friendly. The hospital is being constructed at an investment of Rs 1.40 billion. It will have eight operation theatres, five elevators and four staircases. Jyoti hoped that once the hospital begins its services, the trend&nbsp;to go abroad for treatment will come to an end. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<strong><span style="font-size: 16px;"><span style="color: rgb(51, 51, 153);">MoTCA Seeks Updation of Hotel Standards </span></span></strong></div>
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	<span style="font-size: 16px;">T</span><span style="font-size: 9.5pt;">he Ministry of Tourism and Civil Aviation (MoTCA) is working to update its criteria for hotel and restaurant standards. Keshav Prasad Bimali, the Joint Secretary at the ministry said, also on the cards is the change in the rule so that the hotels will be mandatorily required to register themselves with MoTCA. The code is being updated to accommodate the changes made in various policies and rules four years ago (2064 Bikram Sambat) when the existing code was promulgated, he said. </span></div>
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	<span style="font-size: 9.5pt;">According to the existing rules, the hotels do not need to be registered with MoTCA. As a result it does not have a data on the number of hotels in operation. The code needs to be updated to include such requirements, remarked Shambhu Prasad Koirala, a Section Officer at the Hotel Division of the ministry. He said that this update will make it mandatory for hotels to be registered at the ministry and establish a renewal charge. </span></div>
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	<span style="font-size: 9.5pt;">The ministry is also planning to form a working committee in coordination with the Hotel Association of Nepal, Nepal Tourism Board, Nepal Academy of Tourism and Hotel Management and other concerned bodies for the upgradation and amendment of working directives.</span></div>
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	<span style="font-size: 9.5pt; line-height: 115%;">The ministry said that the standard of existing five-star hotels need to be upgraded to meet SAARC standards. However, the ministry will update the code for five-star hotels only after updating the standards for the tourist-standard hotels. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Machhapuchchhre Wins Inter-bank Volleyball </span></strong></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: 0.2pt;">M</span></span><span style="letter-spacing: 0.2pt;">achhapuchchhre Bank Limited has won the inter-bank volleyball tournament beating Kumari Bank Limited with a score of 23-25, 25-21, 32-30 and 25-18 in the final. The Bank&nbsp;was awarded Rs 50,000 cash prize and a trophy. The tournament was organised to commemorate the 56th anniversary of Nepal Rastra Bank. Kumari Bank took home Rs 35,000 and the runners-up trophy. Everest Bank Limited came third beating Agriculture Development Bank. </span><span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.05pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">NIDCâ€™s 43rd AGM</span></strong></span></div>
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	<span style="font-size: 14px;">N</span>epal Industrial Development Corporation (NIDC) held its 43rd annual general meeting on May 7 after a gap of nine years. The annual reports from 2002-02 to 2009-10 were presented by NIDC Chairman Shanta Bahadur Shrestha during the meet organised in its central office at Durbarmarg. Among the major resolutions of the AGM was the decicion to change its name into NIDC Bank Limited. Coinciding with the occasion, NIDC also started ATM service from its Durbarmarg office. <span style="font-size: 6.5pt; color: rgb(237, 28, 36); letter-spacing: -0.15pt;">n</span></div>
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	<span style="font-size: 16px;"><strong><span style="color: rgb(51, 51, 153);">Shalimar Begins Clinker Production</span></strong></span></div>
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	<span style="font-size: 14px;">S</span>halimar Cement Industry, in cooperation with Unitech Pvt Ltd, has begun trial production of clinker, a raw material used for producing cement. The industry located at Bara-Parsa Corridor has an investment of Rs 700 million and produces 30 tonnes of clinker every day.</div>
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<p style="text-align: justify;">
	<span style="font-size: 11pt; line-height: 115%;">Ashok Kumar Vaidya, the Managing Director of the company said the full capacity of producing 300 tonnes every day will be utilised in one-and-a-half monthâ€™s time. While this is the fifth Nepali company to produce clinker indigenously, other industries depend on imported clinker for cement production. The company has said it will supply clinker to other industries only after meeting its own needs.</span></p>',
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			'description' => 'Nepal Telecommunications Corporation (NTC) has agreed to finance Rs 6 billion to construct the Upper Tamakoshi Hydropower Project. A 456 megawatts hydroelectricity project is financed by domestic investors........',
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		'Article' => array(
			'id' => '379',
			'article_category_id' => '40',
			'title' => 'URBAN HOUSING HOME IN HIGH-rises(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14.5pt;">T</span><span style="font-size: 9.5pt;">he conventional system of owner-built housing is still predominant but with the growing demand for land-for-house, the Kathmandu Valley is experiencing a space-constraint in recent times. It is becoming increasingly difficult for people to find suitable land to build individual residences on. However, inducing paradigm shift is a substantial challenge to overcome the tradition of building oneâ€™s own house. Vertical living, due to its sheer nature of accommodating multiple units, promises to become the preferred lifestyle option for many.&nbsp;Currently, the housing industry of Nepal is worth an estimated whopping Rs 200 billion. </span></div>
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	<span style="font-size: 9.5pt;">A total of 54 companies have received permission for construction of community or collective housing so far in the three districts of the Kathmandu Valley. These companies have received the nod to build 3,633 units of family residences against a demand of 30,000 units which is expected to exceed well over 40,000 units each year in the valley by 2020. While fiscal years 2007-08 and 2008-09 saw the highest number of new projects registration, 2009-10 had very few registrations and 2010-11 has no new projects initiated owing to lack of investment on the part of banks and financial institutions (BFIs). Om Rajbhandary, the CEO and Chairman of Comfort Housing Pvt Ltd reveals, â€œSome approved projects have continued to progress while some others have slowed down, delayed or downsized.â€ </span></div>
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	<span style="font-size: 11.5pt;">Current Scenario</span></div>
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	<span style="font-size: 9.5pt;">The overheated housing market has shown signs of meltdown intensifying the apprehension of the speculative investors leading to the BFIs losing sleep over huge loans issued to the housing developers. With the BFIs tightening issue of new loans and aggressively pursuing recovery of past loans, it will take a while before the now stagnant housing market bounces back, a developer opines. The BFIs had invested aggressively to begin with but the current slump has left them anxious due to their huge loan portfolio for the housing sector. </span></div>
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	<span style="font-size: 9.5pt;">Even though the housing industry is going through a difficult period, entrepreneurs take solace from the fact that scarcity of land along with a sense of security ensured by apartment complexes is bound to hold the business in good stead in the foreseeable future. The intended dwellers too are gaining confidence and slowly gravitating towards the concept of community living of late. On an average, the prices of apartments vary from anything between Rs 6 million to well over Rs 10 million. However, some companies have recently introduced economy flats costing about Rs 1.7 million.</span></div>
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	<span style="font-size: 11.5pt;">Realtorsâ€™ Perspective</span></div>
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	<span style="font-size: 9.5pt;">Itâ€™s about time the term â€˜realtorâ€™ came into force with obtained legality if Nepalâ€™s housing sector were to register a positive growth. The Nepal Land and Housing Developersâ€™ Association (NLHDA) has proposed the government to issue â€˜licence to operateâ€™ tag so that only the licensed realtors have the right to ply the trade. It will regulate the housing sector to a great extent and bring the realtors within the taxation bracket. Till now, the sector has been operating on an ad-hoc basis in the absence of concrete bylaws, says Ichha Raj Tamang, the President of NLHDA. He adds that the private housing projects have also been suffering from lack of proper legislation on housing development â€“ an effective â€˜code of ethicsâ€™ and â€˜property transaction actâ€™ are much desired for. </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;">Majority of the construction work is being carried out in a haphazard manner and in unplanned areas. NLHDA has urged the authorities to strictly regulate the construction business to address the ever-growing demand of urban construction and check the blatant use of landscape for its vertical growth. NLHDA has recommended that housing development be sought through land pooling projects. It will help plan a particular area right from the outset and thus ensure desired infrastructure required for residential colonies and apartment complexes. The painfully lengthy process of acquiring licenses is another impediment towards the smooth functioning of the sector. To address this issue, the developers have been asking the government to facilitate a one-door licensing process.</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;">The ceiling imposed on realty lending by the Nepal Rastra Bank (NRB) resulted in a slowdown of the housing sectorâ€™s growth. The central bank had directed BFIs to limit lending exposure to the housing sector to 25 per cent of their total investment portfolio. It had done so to deal with the fast inflating realty bubble. At odds with each other not too long ago, housing developers and bankers now collectively look at ensuring smooth recovery of realty lending. According to bankers, the current slowdown in the housing sector has much to do with the mismatch in demand and supply. The construction of apartments has continued unabated while their performance in terms of selling the properties has been dismal. Building trust among the targeted buyers is of vital importance too because people still havenâ€™t come to terms with trusting realty developers.</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;">Housing entrepreneurs who resisted selling for fear of descending price levels have now started to slash prices â€“ as much as 30 per cent â€“ to tempt buyers and recover their investments. Despite transactions nose-diving, the developers had hoped for a recovery but are now finding it hard to entice buyers even at reduced prices. The slowdown in realty has affected the BFIsâ€™ performance as their loan portfolio is hugely dominated by the housing sector. Quite naturally, despite committing long-term lending to the sector, the banks have now started to exert pressure for early repayment in an attempt to minimise their realty loan exposure. Currently, the total investment in the housing sector is Rs 97 billion which is 18.9 per cent of the total investments made by the BFIs, states Bhaskar Mani Gyawali, the NRBâ€™s Executive Director â€“ BFI Regulation Department.</span></div>
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	<span style="font-size: 11.5pt;">Central Bankâ€™s Influence and Government Policies</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;">The housing industry has been facing a crisis-of-sorts ever since the NRB issued stern directives in an attempt to prevent simulated skyrocketing prices of housing properties. The mandatory provision of declaring income source for purchase of properties worth a certain amount is another major hiccup. The hike in interest rates on loans from 9 to 17 per cent has further compounded the prevailing miseries. These are just a few among the many bottlenecks that have blocked the desired growth of the housing sector, industry entrepreneurs lament. </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;">The governmentâ€™s imposition of capital gains tax on housing transactions, too, has drove away buyers. It is but understood that revenue mobilisation through taxation is the primary objective of the government. Therefore, it comes as no surprise that the government has hiked property tax as well. Besides, the NRB also wants to minimise the speculative aspect of the housing business to prevent the bubble burst. </span></div>
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	<span style="font-size: 11.5pt;">Buyersâ€™ Viewpoint</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;">Unreal prices of apartments coupled with increasingly higher interest rates on home loans have made it extremely unaffordable for the general public to purchase new properties. And those who can afford are not too sure about the safety standards of these vertical structures especially with the imminent threat of an earthquake hitting the country anytime. They know that there are some developers who are out there to make a fast buck ignoring the threat to peopleâ€™s lives in the event of a natural calamity. </span></div>
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	<span style="font-size: 9.5pt;">However, the central bankâ€™s decision to create a separate category for home loans of up to Rs 6 million as â€˜personal home loansâ€™ has come as a respite and is widely appreciated. It has also provided a fresh lease of life to the low-lying housing sector. With some developers claiming to have sold a good number of units the moment the properties are opened for booking, rumours of artificial transactions have kept the consumers at bay. â€œThe buyers also expect a certain amount of transparency on the part of the developers to avoid the situation of investing money where the developers havenâ€™t put any,â€ says Ashoke SJB Rana, the President of Nepal Bankersâ€™ Association. Having a transparency mechanism will enable the buyers to assess the developersâ€™ strength and give them confidence to invest. </span></div>
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	<span style="font-size: 11.5pt;">Building Parameters</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;">The Department of Urban Development and Building Constructionâ€™s (DUDBC) monitoring mechanism ensures that the apartment complexes are designed as per established specifications to meet safety requirements. It also warrants the size of open space, size and number of units, road access and ground coverage among others. The department is responsible overall to guarantee the completion of procedures on part of the developers before commencing construction. Nepal is the 11th riskiest earthquake zone in the world and the Kathmandu Valley itself is located in one of the worldâ€™s most seismically active zones. This makes it imperative for the developers to plan appropriate structural designs and adhere to the National Building Code.</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;">The housing companies acquire their licenses only after fulfilling the required procedures. The developers get planning permit from the Town Development Committee (TDC) based on existing regulations and by-laws. The apartment buildingsâ€™ plans and designs that meet the National Building Code on safety, electricity, parking space, fire, other disasters and structural design are later approved by the DUDBCâ€™s division office, informs its Deputy Director General Shivahari Sharma. The projects also need to pass the Environmental Impact Assessment (EIA) for big scale ventures and Initial Environment Examination (IEE) for the smaller ones. </span></div>
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	<span style="font-size: 11.5pt;">Housing for the Masses</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;">While the housing companies have been primarily catering to the needs of the wealthy, the lower middle class and the poor still cannot afford the properties developed by these companies. Therefore, though the housing business is providing shelters, it has overlooked the needs of the urban poor. In contrast, housing projects in a lot of countries look at addressing the needs of the economically weaker section of the population on a prioritised basis. </span></div>
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	<span style="font-size: 11.5pt;">Housing for Foreigners</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;">Nepal can very well attract foreign direct investment (FDI) by allowing ownership of apartments to the expatriate community living in Nepal. The government has floated an idea to this effect to let foreigners buy apartments for residential purpose. A preliminary plan has already gathered shape for this purpose. If this turns into reality, it promises to resurrect the housing industry and lend dynamism to the construction sector. Since the housing sector needs fresh capital injection to keep the momentum going, allowing foreigners to buy apartments could hold it in good spirit. This will make the sector more financially viable and generate greater employment courtesy the construction boom. </span></div>
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	<span style="font-size: 11.5pt;">Looking Forward</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;">â€œThe government must give the housing sector the importance it deserves and treat it as a national priority,â€ says Rajbhandary of Comfort Housing. Provision of affordable housing in partnership with the private sector and making newly constructed and under construction buildings safe for residential purpose will be critically important in the days to come. Quality urban housing is at the heart of the struggle to accomplish enhanced living standards. Till about a decade ago, there were limited developers but today, the consumers have a varied choice in the nature and price of the products. Along with the demand, appropriate products, for example, low priced houses are bound to enter the market sooner than later. </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;">If all existing problems settle with time, investing in a developer-built property can prove to be a sound idea because it spares one the hassle of managing sewage, construction materials and labour, water, electricity and TV cable connections and is more secure and comfortable, in general. The developers too would do themselves no harm if they adhered to safety standards and practiced customer satisfaction for a market that is on the course of getting matured. The hugely untapped potential of budget housing holds much promise because thatâ€™s what the largest section of buyers is waiting for. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Given the scarcity of land and the ridiculously high prices of the little land available within the city limits, there will be no option other than to grow vertically, says Umang SJB Rana, the CEO of Westar Properties. Nepalâ€™s urban population is expected to rise 18 per cent by 2015 and 30 per cent by 2030 which underlines the huge potential and a promising future for the housing sector. By correctly identifying the target segment, developing feasible projects, introducing right products at the right time and strategising marketing efforts in accordance will certainly ensure that the housing business is here to stay. Investors who are buying properties only for secondary transactions instead of residing in them end up creating â€˜ghost housesâ€™ galore. It would be great if the apartment complexes and housing colonies find buyers who are actually interested in turning them as their â€˜homesâ€™. The day is not too far when we shall see vertical structures dominate Nepalâ€™s urban landscape all over. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.05pt;">n</span></div>
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<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Brihat Community Living - Sitapaila</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;">â€œEco-friendly homeâ€ is an achievement for the urbanization, to achieve one goal - to create a home which is â€˜friendlyâ€™ to its inhabitants and sympathetic to the environment in which we live. Our Project incorporates a range of eco-friendly products and concepts.</span></div>
<div style="margin: 5.65pt 0in 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Its main features include:</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">1. Solar electricity provision â€“ for streetlights</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">2. Rain water recharge for water conservation</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">3. Proper garbage disposal system for waste reduction</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">4. UV protection sticker on south facing windows</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">5. Use of concrete lightweight blocks in place of bricks- for reduction of carbon monoxide emission and conservation of clay</span></div>
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<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Owned &amp; Marketed By:</span></div>
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<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">TCH Tower - IV, Ground Floor, Block - A</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Sitapaila, Kathmandu, Nepal</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Tel: +977 1 4282086/4286821</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Fax: +977 1 4288820</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">E-mail: info@brihatinvestments.com</span></div>
<div style="text-align: justify;">
	<a href="http://www.brihatinvestments.com/"><b><span style="font-size: 9.5pt; line-height: 115%;">www.brihatinvestments.com</span></b></a></div>',
			'published' => true,
			'created' => '2011-08-08',
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			'description' => 'The conventional system of owner-built housing is still predominant but with the growing demand for land-for-house, the Kathmandu Valley is experiencing a space-constraint in recent times. It is becoming......',
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	(int) 10 => array(
		'Article' => array(
			'id' => '378',
			'article_category_id' => '40',
			'title' => 'Downtown Housing Company(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 10pt;">D</span><span style="font-size: 9.5pt;">owntown Housing Company Pvt Ltd, a parent company of Downtown and City View Apartments, was founded in 1992 as a developer and manager of high-quality property units. Over the years it has provided products and services to accommodate the urban middle class by developing high-quality residential properties. Today, Downtown Housing Company is one of the most respected and diversified service firms available with dedicated people who serve a growing client base that reaches far and beyond.</span></p>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
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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;">Downtown Housing manages the process from conception through completion - an approach that has been perfected over time to exceed the clientsâ€™ expectations. Downtown proactively works to ensure every property as once-in-a-lifetime investment opportunity for its clients, giving it the special care and attention to detail that enhances value for living within.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">City View provides clients with the kind of peace and tranquillity they want. Only 38 exclusive apartments (including 2. duplex pent houses) have been built here, with rich and stylish complex.</span></div>
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<div style="margin: 0in 0in 5.65pt; text-align: center;">
	<span style="font-size: 15.5pt;">Guna Colony </span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 11pt; letter-spacing: -0.2pt;">E</span><span style="letter-spacing: -0.2pt;">stablished in 1998, Guna Colony Pvt Ltd is a large and reputable company involved in property development. It has already completed properties like Stupa Housing in Sinamangal, Stupa Colony in Buddhanagar, Reliable Colony in Bhainsepati and LP Apartment in Lazimpat. New projects such as Bhainsepati Apartments, BN Apartment and GN Apartments in Gwarko have already been launched.</span></div>',
			'published' => true,
			'created' => '2011-08-08',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Downtown Housing Company Pvt Ltd, a parent company of Downtown and City View Apartments, was founded in 1992 as a developer and manager of high-quality property units. Over the years it has.........',
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	(int) 11 => array(
		'Article' => array(
			'id' => '377',
			'article_category_id' => '40',
			'title' => 'Housing In BirgunjSlow Growth, High Hopes(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong><i>By Bimmi Sharma</i></strong></span></div>
<div style="text-align: justify;">
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<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">H</span><span style="font-size: 9.5pt;">ousing business may be mushrooming in the Kathmandu Valley. But the story is different in Birgunj. People with diffent backgrounds find it quite normal to live in separate flats and apartments within the same building in the capital city.&nbsp;But such concept of community living hasnâ€™t gone down well with Birgunj locals. They still prefer to stay separate from people of other religion, caste or culture. It is this mindset that is the major impediment for a flourishing housing industry in the city, lament housing entrepreneurs. They complain of having a difficult time implementing the idea of community housing that was first conceptualised here 14 years ago. So far, all Birgunj could manage are three apartment complexes and a fourth one under construction. </span></div>
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	<span style="font-size: 9.5pt;">Nanakchand Ashwani and Shyam Rungta were the first ones to enter the housing business here. They have built two apartment complexes - â€˜Ganeshâ€™ and â€˜Lakshmiâ€™. These two five-storied apartment complexes have a total of 40 units. The flats at Ganesh were priced at Rs. 900,000 and at Laxmi at Rs 1.35 million per unit. However, these flats remained unsold for a long time. </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;">Eight years after these attempts, Triveni Group constructed a 10-storied apartment complex â€˜Triveni Gopalâ€™ in Birta area of Birgunj. Built at a cost of Rs 50 million by Birendra Sanghai of the Triveni Group, the complex has 72 units in total. Sajjan Kumar Chimariya, the manager of the complex says, â€œApartment culture is yet to pick up in Birgunj because people are more comfortable with the idea of building houses on their own land and to enjoy complete ownership.â€ He adds that the project barely managed to recover the investment and did not yield any profit whatsoever. </span></div>
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	Â </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;">Despite the apartments having all facilities including electricity, water, garden, park and security, people find these rather expensive and inconvenient. Out of the 72 flats in â€˜Triveni Gopalâ€™, 50 are occupied while the owners of the rest 22 units havenâ€™t started residing here. They rather want to sell their properties. â€œThe countryâ€™s volatile situation is primarily responsible for the lukewarm response towards housing in Birgunj,â€ says Chimariya. He adds, â€œThere is no future for housing business in Birgunj. Itâ€™s advisable that the new entrants donâ€™t enter the market here.â€</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </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;">â€˜Prasanna Apartmentsâ€™ which came into being a year ago has started getting residents moving in already. Tara Shumsher Rana, a Director of â€˜Prasannaâ€™ apartments opines, â€œThe housing business is experiencing a low right now but it has a good future in Birgunj due to the impending development of infrastructure in and around this city.â€ The construction of Nijgadh International Airport close to Birgunj, Kathmandu-Nijgadh Fast Track Road, Integrated Customs Checkpoint, Birgunj-Thori Road, Birgunj University and a well developed agriculture market are bound to make Birgunj a more attractive place to live. These developments will have a positive impact on the housing industry, opines Rana. His company Prasanna Constructions is in the business of constructing buildings for its clients for 25 years now. Built at an investment of Rs 50 million, â€˜Prasanna Apartmentsâ€™ has 20 flats altogether and costs anything between Rs 3.2-4 million. Of the 20 flats, only thee are remaining to be sold, Rana informs. â€œThough the present situation is not conducive, once there is political stability and economic progress begins, housing business in Birgunj will definitely flourish,â€ Rana says optimistically. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 9.5pt;">Ashok Kumar Baid, an industrialist who owns Shalimar Cement has joined the housing business and plans to build â€˜Kamdhenu Apartment Homesâ€™ using the â€˜Kamadhenuâ€™ brand under franchise from the Indian owner of the brand. To be constructed at an investment of Rs 800 million, this 12-storied apartment with 134 units will be ready for occupancy in two yearsâ€™ time. Each flat in this â€˜first apartment complex of international standard in Birgunjâ€™, as the developer calls it, will cost Rs 7-8 million. â€œInterested buyers will need to pay 20 per cent of the total amount upfront. The facilities include swimming pool, health club, gym, park, garden and provision store,â€ says Baid. He says he is confident of selling all the units of his project which will come up at Ward 13, Adarshanagar in Birgunj. Like Rana, Baid too is optimistic that housing industry in Birgunj will grow as various developments are taking place in and around Birgunj. He says, â€œBirgunj is a leading business destination and the development projects being implemented in and around here will definitely benefit the housing industry as well as other businesses.â€</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<p style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">â€˜Kamdhenu Apartment Homesâ€™ will be the fourth apartment complex in Birgunj. The previous three apartment houses have a collecgive investment of Rs 150 million. When the investment proposed for Kamadhenu and some other projects that are in the pipeline are added up, the total investment goes up to Rs. 1 billion. Ashok Kumar Temani, the President of Birgunj Chamber of Commerce and Industry is upbeat about the business potential of apartment complexes. â€œIn the future, Birgunj will be like Shanghai or Mumbai. Once the projects which are being constructed at break-neck speed are completed, we will see skilled workers flocking to this city for work,â€ Temani predicts. He continues, â€œThese peopleâ€™s housing requirements ensure a bright future for the housing industry here.â€ </span></p>',
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			'description' => 'Housing business may be mushrooming in the Kathmandu Valley. But the story is different in Birgunj. People with diffent backgrounds find it quite normal to live in separate flats and apartments within the...........',
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	(int) 12 => array(
		'Article' => array(
			'id' => '376',
			'article_category_id' => '40',
			'title' => 'Growing Housingin Pokhara(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 12px;"><i>Text and photos: Deepak K Shrestha</i></span></div>
<div style="text-align: justify;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">With increasing urbanisation and modernisation, the housing industry in Pokhara is gaining momentum though not as fast as in Kathmandu. Along with tourism, education and the health sector, housing is fast becoming an attractive investment prospect for investors here. In terms of population growth and migration, Pokhara is second only to Kathmandu. However, the community housing business has not grown in the same proportion. Entrepreneurs believe that since it is a new concept, people will take time to get attracted to this concept. However, it is already a seven-year-old industry in Pokhara, with two companies already in it while other two are preparing to enter the fray.<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;">Annapurna Developers Pvt Ltd (with the brand name â€˜Fishtail Residencyâ€™) and Pokhara Homes Pvt Ltd have started operations already in Gharipatan of Pokhara Sub Metropolitan City. These companies claim to provide facilities at par with the housing complexes in Kathmandu such as good roads, water and power availability as well as health club. This has attracted buyers who have the means and desire to live in such housing complexes. Besides these, Road Show Real Estate Pvt Ltd and Gandaki Real Estate Pvt Ltd have entered this business recently. While the Road show has its project at a location called â€˜Deepâ€™ that is in the Ward No 16 of Pokhara Sub-Metropolitan City, Gandaki has its project at Lekhnath Municipality under the brand name â€˜Lekhnath Dream Colonyâ€™.&nbsp;Investors claim that the consumers have shown significant interest lately for buying such property.<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;">While renowned contractor and industrialist Surya Bahadur KC is the investor for Pokhara Homes Pvt Ltd, Dhruba Kumar Shrestha, Kalu Gurung and Bindu Kumar Thapa are the investors in Fishtail Residency, Road Show and Gandaki Housing respectively.<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;">Pokhara Homes started building houses on 70 ropanis of land about seven years ago but faced adversity for the first few years. Tej Baniya, the Operations Manager of the company said, â€œWe started doing good business only about three-four years ago.â€ A total of 54 houses were built under phase-I out of which 52 have been sold already. â€œWe are starting phase-II in the next six months which will have 32 units,â€ Baniya informs. The company sells two-and-a-half-storied bungalows, complete with five bedrooms, built on 8-10 annas of land. Baniya claims that each house costs Rs 9-9.5 million just for the construction. He further says that the mere announcement of phase-II has attracted 17 bookings already. Pokhara Homes is also constructing 20 colonies and 14 separate houses near Chorsanghu in Pokhara. The houses and apartments in this area will be less expensive than the ones in Gharipatan.<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;">All housing companies in Pokhara are conducting business with prior approval from the authorities concerned â€“ i.e. municipality and Pokhara Valley Town Development Committee. â€œDue to close proximity of Gharipatan area to the airport, we are not allowed to construct buildings higher than two-and-a-half-stories,â€ says Bhupendra Shrestha, the Marketing Director of Fishtail Residency. The company which started work about four years ago on 21 ropanis of land has already sold 40 of the total 66 units constructed. The buyers have already started residing in 30 of these units, each one a two-and-a-half-storied, four-bedroom bungalow costing over Rs 10 million.<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;">Gandaki Real Estate Pvt Ltd that was primarily dealing in real estate holdings thus far has started constructing housing units on 81 ropanis of land in Talchowk of Lekhnath-8. The company has a target of building 30 units within a year, each unit occupying 5.5-8 annas land and priced between Rs 9 and 15 million.<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;">Suman Kumar Gurung, the Pokhara Branch Manager of Road Show Real Estate said that a total of 108 units will be constructed in Deep of Pokhara-16. The units built on 5-9 annas are targeted at the upper and middle class consumers. The housing complex will have kindergarten, tennis court, swimming pool, cable television, telephone and power generator among other facilities. </span></div>
<p style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">The stakeholders of Pokharaâ€™s housing industry include locals as well as the rich from the capital. Nepal Armyâ€™s retired general Pyar Jung Thapa and Galaxy Schoolâ€™s founder Gita Rana have already bought properties in the city. Besides the established businessmen, the newly rich people as well as&nbsp;retired soldiers of foreign armies have shown tremendous interest in Pokharaâ€™s community housing units. Gurung says, â€œPeaceful environment, security and a modern lifestyle is attracting retired professionals immensely.â€ He adds that the housing industry in Pokhara has a great future because the very name of the city rings a bell in peopleâ€™s ears since it is considered â€˜heaven on earthâ€™. Political instability, the Central Bankâ€™s endless directives and lack of investment climate have affected the housing sector as well. But the housing entrepreneurs remain optimistic that the flourishing housing business outside the Kathmandu Valley will be provided encouragement by the government.</span></p>',
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	(int) 13 => array(
		'Article' => array(
			'id' => '375',
			'article_category_id' => '40',
			'title' => 'We Need To Reinvigorate The Real Estate Climate (june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 14px;"><b><span style="line-height: 120%;">Bijay Rajbhandary</span></b></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 7pt; line-height: 120%;">Chairman and Managing Director</span></div>
<div style="text-align: justify;">
	<span style="font-size: 7pt; line-height: 115%;">CE Construction Pvt Ltd<br />
	<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	Housing culture has been in practice for almost a decade now. It is certainly getting popular as it provides infrastructure facilities like security, drinking water, electricity, internet, common space and other facilities. However, despite the growing trend of community housing, we can't expect the individuals to completely stop building independent residences.</div>
<p>
	&nbsp;</p>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">You have been in the housing industry for some time now.&nbsp;Where do you stand currently? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	Real Estate is our core strength but at the same time, we have been operating in other sectors as well. We have a wide range of properties in different locations in and outside of Kathmandu and our ultimate objective in the real estate is to serve the mass. Currently, the housing sector is experiencing a slow growth. Different stakeholders such as the government, regulatory body, financial institutions, developers, investors and individual buyers are somehow responsible for the slow pace of the housing industry.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">The NRB has relaxed lending for the housing sector recently. How big is the relief? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	It has definitely provided relief to some extent. But the impact is yet to be seen because there is a liquidity crunch in the market and the banks have a problem maintaining credit-to-deposit ratio. We need to work very hard to regain a prosperous real estate climate.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">As the banks are shying away from investing further in this sector, how do you plan to take your projects forward?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.15pt;">We have been using different financial tools on a project-to-project basis and the major portion of our cash flow is coming through sales. There are basically two categories of buyers the speculative investors who intend to sell the property at later date at higher prices and the end users who really want to settle in those homes. Both types of people seem quite reluctant to invest in this sector at the moment because of political uncertainty and unclear policies. We are working hard to come up with innovative tools to cater to both the categories. At the same time, we are introducing attractive packages for the buyers. Project management being our strength, we periodically map our project execution plan, assess the risks and the uncertainties and act accordingly. Even though the banks are going through a difficult time, they have been extending cooperation towards us because of our credibility. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">The interest rate has tremendously increased increasing the cost of housing development and eventually the price. Thus the properties are now beyond the general public's affordability. What do you suggest to tackle this problem?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.15pt;">Yes, the housing sector is reeling from the impact of the interest hike, however, it is minimal. The projects are usually funded through equity, borrowings from the financial institutions, credit from the vendors and subcontractors and most importantly, from sales. In general, the share of bank funding in a project is about 30 to 45 per cent of the base cost. Of the sales price, the share of bank funding is only 25 to 35 percent. So, the interest hike of 5 per cent has an impact of about 1.25 to 1.75 per cent on the sales price. The developers should be willing to absorb that from his profit in view of this difficult time. Therefore, the slaes price need not go up just because the interest rate has gone up. In order to continue with the planned projects, the developers will have to resist hiking the price and be content with lower profit. This is the best strategy till the buyers are in wait and watch mentalality. The impact on sales is not because of the price of the product itself but due to the interest on loan which buyers take from the financial institutions. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">Don't you think that the houses and apartments are priced unnaturally high? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">When we talk about the price of the housing products, one needs to take into account the basic components: the price of the land as well as the cost of the building and infrastructure. So, in the current context, developers can only play with the land price as the other two components are easy to calculate. We ask the buyers compute the price of the above mentioned components of our units and let them sum it up. As far as the land price is concerned, buyers can check the price in the project neighbourhood. Our price turns out to be 20 to 25 per cent less than what the buyers come up with after such calculation.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	Since the buyers are getting the finished product, they save in the hassles that they may otherwise go through when they build their house on their own. If you assign monetary value also to these hassles, the houses that you buy from a developer are much cheaper than what you will have if you construct it on your own.&nbsp;In our case, it is even cheaper because we are the single real estate solution provider- we buy the land ourselves which saves in the service fee of the broker, we do in-house designing, we ourselves are the contractors and we buy local material in bulk and import many branded materials through our trading division. In comparison, individual house owners building their own house have to buy all these on their own in retail. In that process they end up paying higher for everything. And quality is the further value addition when you buy from a developer because the developers are equipped with resources like manpower, equipments and construction technology.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">It is said that apartments are not much preferred by Nepali people. Therefore, a lot of apartment units from the developers are lying unoccupied. How do you view this?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.15pt;">&nbsp;This is very true but at the same time, we do need to understand that any change takes time. Currently, a number of units of completed apartments are either still unsold or unoccupied even if they are sold. Therefore, progress of many projects is slowed. However, this slowdown in the progress is not only due to inadequate sales but also due to lack of fund as bank lending is curtailed. Many developers fear that if they borrow at high cost and finish the units but they remain unsold for long, they may have to incur very high maintenance cost for such apartments.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	However, we in CE are trying to complete all our projects on time to send a positive message across. Presently, the criteria for the buyers selection of a property are: the credibility of the developers and the physical status of the project. Buyers are comfortable in buying finished products because it is like buying any other commodity. Counselling as well as other marketing tools might not be that effective at the moment as compared to putting on sale the finished product.<br />
	 </div>
<div style="text-align: justify;">
	No matter how the people at present may view the apartments, the apartment projects are viable because the price that the buyers of such apartments will be paying will be lot cheaper when compared to the upgraded lifestyle that the buyer can enjoy in such apartments. It is just a matter of time before people shed their inhibitions about buying apartments.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">What are the required measures to improve this sector?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.05pt;">First of all, the country needs to assess whether real estate is a need for us or not. If yes, all the concerned parties including the developers need to extend their full cooperation. To gain the confidence of the buyers, I have different recommendations to my colleagues. Those who have not started their projects must have a thorough plan to work out the cash flow before they start the project. They must also have a full proof marketing plan. As for those who have started their projects, their primary responsibility should be to complete the sold units fast and meet the contract conditions as well as reschedule construction of unsold component of the project based on cash flow and sales forecast. This strategy will not only help win the confidence of the buyers and investors but also that of the financial institutions.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.15pt;">The average age of a building is around 50 years. What will happen to those living in the apartments and individual houses developed by housing developers after this time period? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The age of a building depends on the technology used to build it. The property is insured against earthquake, fire or any other kind of damage. If something happens during the lifetime of a building, either a community housing or an apartment building, it will usually be compensated through insurance.&nbsp;Once the building's lifetime expires, the law clearly states that the ownership of the property will be ascertained on a pro-rata basis. You have two options - either to rebuild the property with the same proportion of ownership or if all the flat owners of a particular property agree to sell it, they will get the sales proceeds divided amon themselves on a pro-rata basis. If the property value grows tremendously during the lifetime of the building or afterwards, the owners will have the option to demolish and come up with a different product. For example, it can be a commercial complex or any other product that may yield higher return. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">Is there an issue with the ownership of the flats? <br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	Well, there is no issue whatsoever at all regarding flat ownership. Once you buy a flat, you get an ownership certificate from the Land Revenue Office. When a building is complete, the municipality and the department of urban development and physical planning inspect it and issue the completion certificate. It then recommends the Land Revenue Office which issues you the certificate of ownership.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">How long will it take to change the housing culture from independent houses to community living in flats and condominiums ?<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	Housing culture has been in practice for almost a decade now. It is certainly getting popular as it provides infrastructure facilities like security, drinking water, electricity, internet, common space and other facilities. However, despite the growing trend of community housing, we cant expect the individuals completely stopping to build independent residences on their own. This is because housing projects will not be able to meet the individual requirements of all the people.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">Tell us something about your ongoing projects? </span></strong></div>
<p style="text-align: justify;">
	<span style="font-size: 11pt; line-height: 115%;">CE's current housing projects include: Vinayak Colony (176 units of independent houses) in Bhaisepati, Grande Towers (529 High-End apartments) in Dhapasi, Veena's Residency (76 units independent houses) and Harmony Housing (74 units independent houses). Similarly, we have recently completed Vinayank Colony-phase 1 in Bhaisepati, Rio Apartment in Kupondol and The Retreat Apartment in Bijayshwori. We are also coming up with two affordable independent housing projects in Sitapaila and Budhanilkatha.</span></p>',
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	(int) 14 => array(
		'Article' => array(
			'id' => '374',
			'article_category_id' => '40',
			'title' => 'Developers-built Housing Market Is On The Rise (june 2011)',
			'sub_title' => '',
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			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 14px;"><b><span style="line-height: 120%;">Om Rajbhandary</span></b></span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 120%; vertical-align: middle;">
	<span style="font-size: 7pt; line-height: 120%;">CEO and Chairman</span></div>
<div style="text-align: justify;">
	<span style="font-size: 7pt; line-height: 115%;">Comfort Housing Pvt Ltd</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	Over the past three years, the land prices have risen astronomically high and it has become a speculative market. Investors have invested because they saw prospects for profit. Such investors are not selling as&nbsp;they are waiting for higher prices. And they will continue holding as long as they have the capacity to hold.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>How do you evaluate the housing industry at present?</strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">I started my career as a developer and we are the pioneer in promoting community living concept in Nepal and real estate as an industry. My aim is to establish this as a professional institution because this is a very large industry where everyone can be adjusted. Human life does not exist without real estate because any building, whether it is hospital or a theatre or a residence, belongs to this sector. So, this sector should be developed in a proper way. When we compare Nepal with any other country, our urbanisation is largely unplanned. Housing industry is dependent on three elements - government, individuals and the developers. Our government has a different agenda and the government people are not bothered about well managed urbanisation. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>How do you look at the future of this industry?</strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.15pt;">Nepal's 15 per cent population live in urban areas whereas the global urban population today is 50 per cent. By 2030, our expected urban population will be around 30 per cent while the global urban population will reach 70 per cent.&nbsp;According to a survey, in Nepal, we require nearly 270,000 housing units annually. In 10 years time, one million units will need repair and maintenance. Likewise, within the Kathmandu Valley, we will have a deficiency of around 40,300 units every year. So, it has a bright future and huge potential. On the other hand, secondary transaction is equally important. In my opinion, in community living, there is 10 to 15 per cent secondary transaction. The secondary transaction also generates revenue for the government.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>How can the housing sector be revived from the current problems, such as the restrictive rule of Nepal Rastra Bank?</strong></div>
<div style="text-align: justify;">
	A number of factors affect the housing market. They are: government policies, financial institutions, building materials, building technology, households, land prices and the real estate agents. We have different policies coming from the government and the Nepal Rastra Bank (NRB). There are a few aspects in the government policy that need to be addressed immediately.<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">First is&nbsp;the capital gain tax rate that is 10 per cent for any transactions within five years and five per cent after five years. Thre is difficulty for people to afford 10 per cent capital gain tax. So, when the people sell the property in the secondary market, they report transaction figure to the government, they show a lower than the actual figure. This ultimately affects government revenue. For example, if I buy a property for Rs 10 million and sell that in a year-and-a-half for Rs 20 million, then my capital gain is Rs 10 million. And from that Rs 10 million, I am expected to pay Rs 1 million as capital gain tax to the government.&nbsp;To avoid such taxes, people are showing Rs 12 million on paper though the actual transaction is for Rs 20 million. This way, the government is losing revenue. Once the property is liquidated, the money is normally deposited in the bank. But while depositing the money in the bank, you have to show the source of the money. Hence, only Rs 10 million can be deposited. The rest Rs 8 million remains out of the system. This is one of the reasons for the current liquidity crisis.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Second, while buying land of more than Rs 3 million, it is mandatory to declare income source. This is the other concern that needs to be addressed immediately.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">Housing must be recognised as an industry so that the revenue goes into the state coffers. The NRB limitation has now been relaxed and a new loan portfolio category - home loan - has been created as well. I think the banking sector too should have a positive attitude towards housing industry. There are three different perceptions among the banks - some say that the real estate is an industry and profits can be made from this. Thatâ€™s why they have made investments in this sector. Others say that the real estate is a future industry and they need some experience in this sector. So they have made limited investments. There are yet others who regard as a very risky industry. Therefore, they have made very small investment in this sector.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	We are currently at the bottom of the real estate cycle. To recover from such a state, these government policies and the perception of the banking sector towards this industry should change.</div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>Though the NRB has relaxed lending, some of the housing developers say it is yet to make its impact in the market. Why such slow response?</strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Over the past three years, the land prices have risen astronomically high and it has become a speculative market. Investors have invested because they saw prospects for profit. Such investors are not selling as&nbsp;they are waiting for higher price. And they will continue holding as long as they have the capacity to hold. Some investors are keen on recovering the principal amount if they are not in a position to make profits. Some other investors are willing to liquidate even at a loss so that they may not need to continue bearing the financial burden. We are at a stage where even if we can't make profits, we have to liquidate the property. Our strength will be tested in mid-July because there will be pressure from banks. Our inventory holding capacity too will get revealed. Today, if you can sustain yourself, you will emerge winner but if you can't, you will have to liquidate to get the return on interest and principal. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>When the bank's investment was curbed, how severely were your projects affected? How did the companies manage to take their projects forward?</strong></div>
<div style="text-align: justify;">
	As per the data from the government authorities, fiscal years 2007-08 and 2008-09 witnessed the highest number of new projects registration while 2009-10 had very few and in 2010-11, there are no new projects registered at all. The projects approved in the past are making progress, but some of them are progressing very slow or they have downsized.<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.15pt;">An investor will definitely look for maximum returns. But people do not have much confidence in the real estate industry at present. So people are not putting in money. Similarly, banks are also not investing which is why this industry has slowed down.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">One indication of low sales of apartments is that Nepalis are not much attracted towards group housing. What should be done to assure them that such houses are better than individually constructed residences?</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">I personally feel that people have gained more confidence in group housing now. A decade ago, this concept was very new. Today, a number of developers have entered the market with their projects because the concept has been accepted by the people. The success or failure of a project is a different issue altogether. The concept of community living has been largely accepted by the Nepali people. Now, the percentage of owner-built houses is declining while the developers-built housing market is on the rise. In developed countries, all the people buy houses from developers only. Once you are very rich, then you may want to go for custom-built houses.<br />
	<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">People complain that the developer-built houses and flats are unreasonably priced. How can the price be brought down to make the houses affordable for more people?</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">In my opinion, the prices of the developer-built houses are reasonable at present. Therefore, the prices are not going to come down from what they are. Though some investors and developers may sell their property at even lower price than what it is at present, that will be only in case of financial distress. The land purchased by the developers was very expensive in the first place. The interest on the capital borrowed is very high. Similarly, there is a high uncertainty cost. Besides, human resource cost is getting expensive by the day. In all ways, if you compare with yesterday's price, today's price is at the same level. But the expenses have certainly increased. So, the developers have cut down on their profit. They are at a point where they can't come down any further in price.&nbsp;</span></div>
<div style="text-align: justify;">
	<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>that means there is no plan to build more affordable housing?&nbsp;</strong></div>
<div style="text-align: justify;">
	It is true that developers are not coming up with affordable housing. As a developer, we should come up with low priced products targeting the wider mass. While we at Comfort Housing are planning to come up with affordable housing, some colleagues in&nbsp;inthis industry have already brought such products to the market. So, the products will come to the market as per the demand in the market. The problem is that while the people have low budget, they have a high value house in their mind. They should also know how much they can afford and what they will get within that.</div>
<div style="text-align: justify;">
	<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<strong>Commercial and residential housing projects are centred in few cities, mainly in the capital. Why are developers not interested to take such projects in the semi-urban areas and small towns?</strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.1pt;">Well, the concept has changed now. I had started a project in Dharan a long time ago. At that time, the community living concept was not popular. The migrant population of Kathmandu is 39.6 per cent. Everyone wants to own a house here as Kathmandu is the capital city. That is why developers are mainly concentrating in Kathmandu valley. Now that the peace process has progressed to some extent, development outside the Kathmandu valley is bound to take place in a year or two. The land prices in all the commercial towns have gone up like anything and that is one of the indicators. Even in the Kathmandu valley, the projects have come up in the suburbs. Our urban area is expanding by 4.6 per cent every year. Today, three to five kilometres periphery of the ring road is also considered urban area. So, the developers are going beyond the ring road and that is why we see a lot of housing projects centred within this belt. I feel that we should go further beyond that. We should focus on the development of suburban areas so that we can minimise the load on the carrying capacity of the city.</span></div>
<div style="text-align: justify;">
	<br />
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: 0pt;">The Supreme Court recently declared null and void the rule that required all transactions above Rs. 5 million to be made through bank. How much relief would it provide to the industry?</span></strong></div>
<p style="text-align: justify;">
	<span style="font-size: 11pt; line-height: 115%;">Not much because the problem is more with the worry and suspicion the people have about the situation tomorrow. They are not sure what sort of new charges may be levied then. However, this ruling by the Supreme Court will help to some extent.</span></p>',
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FOREX

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

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

Bullion

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

Update : 2020-03-25

Source: Federation of Nepal Gold and Silver Dealers' Association

Petroleum

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