The construction work in the special economic zone (SEZ) of Birgunj is nearing completion. However, industrialists complain that the law needed for the operation of the SEZ which is hoped to boost exports, is still not enacted.

 

The SEZ is being constructed in an 832 bigha land that was once the premises of Birgunj Sugar Mills. The idea to establish a SEZ at this location was finalised seven years ago with an objective to increase export competitiveness of the country. The government began building the SEZ as per the Industrial Policy that promises various facilities to the exporters. However, the industrialists are arguing that the facilities should be provided also to the industrial units that produce goods for consumption within the country. Jagdish Agrawal, Chairman of Nimbus group of companies said the government policy to protect only the export-oriented industries is wrong. He said that in a country like Nepal where the internal production is not enough to meet the internal demand, there is no point in providing incentives only to production meant for export. He also suggested setting up economic zones specialised in certain products.

 

Om Prakash Sikaria, Former President of Birgunj Chamber of Commerce and Industry however, expressed hope that the SEZ would help in the development of export-oriented industries in and around Birgunj. However, he complained at the delay in introducing a separate law required for the operation of the SEZ.

 

Both Agrawal and Sikaria pointed out that the Birgunj SEZ will have problems as it is located away from the highway and the dry port. The Birgunj SEZ will have five blocks. Among them, block A will be the biggest with an area of 343 bigha. Block B will have 123 bigha while the area of block C will be 49 bigha. Similalry, block D will have 178 bigha and block E will be of 133 bigha. 

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Maoists not for Majority Foreign Stake in Nepali Banks

UCPN –Maoist Constituent Assembly (CA) members do not want branches of foreign banks in Nepal. They have started political lobbying saying the foreign banks established in Nepal will leave negative effects on the economy.

 

They have taken a stand not to allow foreign banks to own more than 49 per cent stakes in banks in Nepal. They want it to be included in the Banks and Financial Institution Act (BAFIA) which is in the process of amendment. “This is the issue of nationality,” said Narayan Prasad Sharma, a Maoist CA member and coordinator of BAFIA sub-committee. “We are determined to make provisions that only Nepali citizens and entities can hold a majority stake in Nepali banks,” he added. “It will be a threat to the national economy if 51 per cent stake is not held by the Nepalis,” he clarified. Another Maoist CA member Hari Roka said that the provision about the ownership of a foreign bank branch should not exceed 49 per cent and it should be mentioned in the law itself. However, the Maoist stand is against the World Trade Organisation (WTO) provisions. While being the member of WTO in 2004, Nepal had signed an agreement to allow foreign investments into the country from 2010.

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Panchakanya Operates On Full Capacity

Panchakanya Steels, a Panchakanya Group company, has begun operating to its full capacity. Biswojay Pudasaini, Sales Manager of the company, said that the company has invested Rs 100 million to increase the output.

 

With the upgrade in production, the company has begun producing 80 thousand metric tonnes of steel rods annually. Previously, only 60 tonnes of steel rods was produced in a year. Pudasaini claimed that with the increase in production, market share will also increase to 25 per cent. He said that government and foreign projects largely use Panchakanya Steels products.

Panchakanya began producing to its full capacity from the second week of June. According to Pudasaini, the company installed the latest technology after replacing the old one. However, he said that the product is yet to be supplied to the market. The company is producing rods from its plant at Bhairahawa.

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Shiva Ram wins Surya Nepal Central Open

Shiva Ram Shrestha registered an eight-stroke victory over Sanjay Lama to take home the Surya Nepal Central Open title at the Gokarna Golf Club. He carded four-under 68 on the final day for a total of 10-under 278 to list the 11thcareer title, highest by a pro in the Nepali tour.

 

Similarly, Lama stood on second position with a total of two-under 286 after the final round score of five-under 67, while Mani Rai played a round of six-over 78 to score the third position at one-under 287. Samundra Giri and Ramesh Nagarkoti shared the fourth position at 289.

 

In amateur category, Tashi Tsering claimed the trophy with a total score of 10-over 298 while Bikash Bogati came second at 299.

Out of the total cash purse of Rs 425,000 of the third event under the Surya Nepal Golf Tour 2011-12, Shiva Ram received Rs 90 thousand, while Sanjay bagged Rs 57 thousand. Similarly, third-placed Mani pocketed Rs 45 thousand. Dorji Sherpa, Vice-President of Gokarna Forest Resort and Ghana Shyam Thapa, former President of Nepal PGA handed over the prizes to the winners. 

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Deposit Insurance Mandatory for Commercial Banks Too

Nepal Rastra Bank (NRB) has started sending letters to commercial banks directing them to insure deposits up to Rs 200 thousand. “We have directed commercial banks to ensure deposit insurance in next fiscal year,” Bhaskar Mani Gyawali, Spokesperson of NRB, said.

 

The central bank has said that deposit insurance has been made mandatory to safeguard the deposits of common depositors at a time when financial institutions are considered fragile. Gyawali said that deposit insurance is made extensive as a part of winning back confidence of depositors. Deposit insurance programme began this year starting from development banks, finance companies and microfinance banks. Till date, deposits of Rs 529.6 million of 1.4 million depositors in 138 financial institutions have been insured. 

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Eight Polytechnics in the Offing

Eight new polytechnic institutes will be set up in different parts of the country with financial assistance from the Nepal government and some friendly countries. Total investments into all these institutions will add up to Rs 3.32 billion. These institutes will be established in Makwanpur, Rupandehi, Rautahat, Sarlahi, Kailali, Dhanusha, Chitwan and Kathmandu. Bishnu Koirala, Director of the Council for Technical Education and Vocational Training (CTEVT), said these establishments will be financed by national and foreign investments.

 

With a financial assistance of Rs 450 million from the Indian government, a polytechnic will be set in Hetauda, Makwanpur, will be established with the support of Indian government. According to Koirala, Another polytechnic will be set with a Korean assistance of Rs 520 million in Butwol, Rupandehi. Polytechnic institutes in Janakpur, Chitwan, Kathmandu and Kailali will be set up with a government assistance of Rs 500 million for each of the institutes.