In Nepal, we are fortunate to have sunshine round the year. Rajan Pradhan in his article, Producing Energy, the Solar Way in the March issue of New Business Age has written that Nepal has the potential of producing 26,000 Mega Watts of solar energy. Going by this account, we are rich in this alternate source of power besides the usual and much promised hydropower.

Though we have resources, we are people who are forced to spend our lives in darkness, for most part of the day and night. Power cut reaching up to 18 hours a day is a pathetic state-of-affairs, to say the least. It seems we are training ourselves to live without electricity. Since the successive governments have failed oh-so-miserably in providing a solution, the time has come for us people to take the matter in our own hands and start generating power ourselves.

Business houses and industries have started doing so. Most of the households too have made their arrangement of UPS or invertors. However, very few have thought about installing solar power. As Pradhan observes it could be due to the high EMI on loan. Though it might seem expensive for first time installation, it is relatively cheaper over the long term. Solar panel can meet daily power needs and save on outrageous monthly electricity bills. I personally have seen this in villages where households have installed solar panels before electrification reached them. Despite electricity authority reaching them now, they refuse to subscribe to conventional power as they are happy with their existing arrangement. The solar electricity produced in households can even be supplied to the national grid like in the European countries if adequate provisions can be made.

The government must think about providing subsidies and soft loans and introduce special schemes to those who want to use the alternative energy which is also eco friendly and easily available. Either the government must end the power crisis immediately or help people install the solar option.

 

- Surya Chapagain

Satdobato

 

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Stop Terrorising Businesses

Nepal is experiencing a slow pace of economic growth and even slower industrialisation. The power woes and unstable political environment are impeding the country’s growth. Business houses always emphasise that stable political situation and lasting peace and security are imperative for industrialisation. An investment friendly environment cannot be created without a stable socio political environment.

In the last week of March, we have seen fresh cases of impunity in the Terai where most industries are located. Such incidences would affect businesses and investor psychology about the future.  This would further derail the process of economic growth.  Such activities are adding pressure to the already existing troubles. The concerned groups must start thinking about the nation and economic prosperity. Everybody needs to understand that without the development of industries and private sector, Nepal cannot tread on the path of sustainable growth and development.

 

- Narayan Prasad Adhikari

Chitwan

 

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Banks Must Get More Responsible

The cover story on banking industry in your March issue portrayed a detailed picture of this sector. The growth of the banking and financial institutions is a good thing but their limited reach to the rural areas is a worrisome attribute.

Time and again, there are issues of banks and finance companies failure. Recent examples include Samjhana Finance and Gurkha Development Bank. Some might say this is bound to happen given the crowd of 272 banks and financial institutions. But this is not something that cannot be controlled. The closure or failure of a bank is not comparable to the closure of a retail shop on a street corner. A financial institution's closure leaves a huge crater on the entire economy.

 The story rightly point out that this is a well regulated sector. However, despite such regulation and strong monitoring by the Nepal Rastra Bank, incidences of failure occur time and again. Such incidents repeating amidst central bank regulations are rather unfortunate. Most of the time, failure of corporate governance has resulted into such mishaps. Probably, some of the banks owners or the management teams do not take their institutions and the depositors seriously enough. In some cases, they themselves manage to lead the company on the verge of collapse.

They take huge amount of loans behind the scene which later proves to be non performing loans or show investment in areas that does not give any returns. Such practices bear the potential to eventually lead the company towards bankruptcy. In the bargain, it's the depositors in particular and the economy in general which stands to suffer. The report shows Rs 15 billion as the negative net worth of just two banks. This is a ticking time bomb that may explode any time.

So, the regulations may not prove to be successful every time. Companies must maintain self- discipline, good corporate governance and realise the importance of their respective financial institutions. They must not forget theirs is not a business house only. There is tremendous responsibility on their shoulders that they must fulfill.

 

- Samiksha Budhathoki

Gairigaun, Kathmandu