Nepali economy on road to recovery: Minister Badu

Kathmandu, Aug. 26

Minister for Industry, Commerce and Supplies Dilendra Prasad Badu has said that Nepali economy is on the path to recovery.

"We all know that the economy of the country needs a serious handling. There is a threat of growing trade deficit and dwindling foreign currency reserves. But the recent policies adopted by the government, including the budget for the current fiscal year and monetary policy, are helping to bring the economy back on the track," he said while addressing the 42^nd Annual General Assembly of the Nepal Foreign Trade Association (NFTA) in the capital on Friday.

He also informed that discussions are underway to address the economic challenges and attract domestic and Foreign Direct Investment (FDI).

He requested the private sector to increase investment and expand production. Stating that the government and its policies want greater role of the private sector in the development and economic growth, Minister Badu said that the policies are designed in a way to support this theme.

"We have decided to increase the threshold of land ownership so that it would support the businesses and industries in multiple ways. The government is moving ahead towards attracting FDI in close collaboration with the private sector," he said. The government has recently downsised the threshold for the size of investment to Rs. 20 million from Rs. 50 million.

He said that the government believed the private sector is the engine for the economic growth and that it would always strive to increase the domestic production, export and investment.

He pledged to implement the reforms at the earliest, within a few days.

"I want the business community to tell me the hurdles in making investment. I don't want to listen that the private sector is discouraged. I assure you that you are fully safe, so invest with full confidence," he said.

Newly elected President of the NFTA, Binod Kumar Sethia, said that although imports have a large contribution to the national revenue, it is being blamed for all wrong reasons. Open border has facilitated the smuggling of the banned foreign goods to Nepal from India and China.

The government should seriously work to check this malpractice, he suggested.  

According to him, if the government wants to attract more foreign investment into the country, it must offer better facilities than our neighbours and competitors elsewhere in the word to the investors. Reduced cost of production, tax discounts and policy facilitation are the fundamentals to attract income.

Shekhar Golchha, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) said that growing size of import is basically the result of the growth price of goods including petroleum products, steel and food in the international markets rather than the amount of goods.

Likewise, Motilal Dugar, former Minister of State, said that the government has failed to control the grey market while the ban on luxury goods is on. It has done less good to the nation and the foreign exchange reserves but traders have been facing troubles.

He maintained that there shouldn't be a communication gap between the government and private sector. Business is a peaceful community so it should be treated in the same way.

AGM elects new leadership

The AGM has unanimously elected a new 21-member working committee in the leadership of Binod Kumar Sethia.  

Newly elected members of the working committee are Anil Kumar Agrawal, Akash Golchha, Rishi Raj More, Kumar Bahadur Karki, Govinda Lal Sanghai, Gaurav Sarada, Jayanta Kumar Agrawal, Pawan Kumar Agrawal, Pawan Kumar Sancheti, Pardip Rajgadhiya, Prabhat Kumar Sarraf, Bishnu Kumar Joshi, Madan Mittal, Mayank Kedia, Ratan Lal Kedia, Ramesh Kumar Thapa, Ram Chandra Khetan, Shiva Kumar Agrawal, Swati Rungta Agrawal and Sumit Kumar Bansal.

  Published in The Rising Nepal daily on 27 August 2022. 

Indian Minister Gen VK Singh to attend Nepal Infrastructure Summit

Kathmandu, Aug. 26

General Vijay Kumar Singh, Minister of State in the Ministry of Road Transport and Highways and Ministry of Civil Aviation, Government of India, would be the guest of honor at the upcoming Nepal Infrastructure Summit to be organised by Confederation of Nepalese Industry (CNI) and Ministry of Physical Infrastructure and Transport (MoPIT) on September 8-9.

CNI President Vishnu Kumar Agrawal met Gen V K Singh at the Ministry in New Delhi the other day and extended the invitation, CNI said in a statement. Official invitation from the MoPIT has already been forwarded.

"Nepal has been facing serious infrastructure problems which has led to high cost of doing business and has eroded the competitiveness of industries in Nepal. This year’s summit has the theme ‘Infrastructure for Growth’," read the statement.

Without a proper infrastructure, overall economic growth cannot be achieved. India has made large strides in infrastructure development over the last decade.

The CNI said that one of landmarks infrastructure development initiative in India is the PM Gati Shakti - National Master Plan for Multi-modal Connectivity, essentially a digital platform to bring 16 ministries including railways and roadways together for integrated planning and coordinated implementation of infrastructure connectivity projects.

The multi-modal connectivity facilitates the last mile connectivity of infrastructure and also reduce travel time for people. PM Gati Shakti will incorporate the infrastructure schemes of various Ministries and State Governments like Bharatmala, Sagarmala, inland waterways, dry/land ports, UDAN etc. Economic Zones like textile clusters, pharmaceutical clusters, defence corridors, electronic parks, industrial corridors, fishing clusters and agri zones will be covered to improve connectivity and make Indian businesses more competitive.

A major bottleneck in infrastructure development in Nepal is the lack of coordination between different departments, for example, once a road was constructed, other agencies dug up the constructed road again for activities like laying of underground cables, sewage pipes etc.

For developing a hydropower project, approvals are required from seven ministries, 23 departments and 36 acts have to be followed, CNI informed.

"The logistics cost in Nepal is one of the highest in the region, with road transport being the primary source of logistics. Railways, waterways and the like are yet to take shape and even the cost of running vehicles on the road is high," it maintained.

Nepal has also adopted Public Private Partnership concept for speedy development in road, transport and other infrastructure sectors. The Indian success story is expected to inspire the Nepali policy makers and entrepreneurs to think differently towards infrastructure development.

The Infrastructure Summit 2022 is expected to draw more than 1000 delegates from more than 25 countries.

 Published in The Rising Nepal daily on 27 August 2022. 

FM Sharma urges industrialists to increase productions

Bharatpur, Aug. 26

Finance Minister Janardan Sharma has said that the production-friendly policy is the need of the moment and the budget has been introduced based on the same theme.

Speaking at the fifth district conference of the Nepal Industry and Trade Federation of Chitwan, an organisation of industrialists close to CPN (Maoist Centre) in Bharatpur, Chitwan, on Friday, he requested the industrialists of Chitwan to increase domestic production.

"The current budget is a kind of a production-friendly policy. The country cannot run on remittances, production should be increased by maximum utilisation of labour and resources. We have also presented the same topic in the budget," he said.

Finance Minister Sharma, admitted that he did not get a degree from a world-renowned university and that he was called a fighter, was true. "I did not get a degree from Harvard or Oxford University. In their language I am a fighter. However, I read life of the Dalits of the Terai region. I read what is the cause of poverty in the country. I studied the possibilities, and conducted discussions on it with many people. Now, I presented the current budget saying that production should be increased by maximum utilisation of available labour and resources," he said.

He said that the budget prioritised production and increasing domestic production is the need of the day. According to him, the local and federal governments will support in the technology needed to increase the production.

Minister Sharma said that all vegetables needed in Kathmandu can be supplied from Chitwan, a district of multifaceted importance and a leader in terms of production. He pledged government support for the same.

He informed that a preliminary survey for the tunnel that would facilitate travel from Kathmandu to Chitwan in 45 minutes has started. 

Published in The Rising Nepal daily on 26 August 2022.

Bangladesh to purchase 50 MW power from Nepal

 Kathmandu, Aug. 25

The fourth meeting of Energy Secretary Level Joint Steering Committee of Nepal and Bangladesh has been completed with notable achievements. The meeting of the committee was held in the Capital on Thursday between the Energy Secretary of the Ministry of Energy, Water Resources and Irrigation (MoEWRI), Sushil Chandra Tiwari, and the Secretary of the Ministry of Energy and Mineral Resources (MoEMR) of Bangladesh, Mohammad Habibur Rahman.

The financial modality of 683 MW reservoir project, Sunkoshi III Hydroelectricity, which Bangladesh wants to invest in, was also on the agenda. But it has been agreed to finalize the modality in the next meeting after the review of the Detailed Feasibility Study (DFS).

Kulman Ghising, Executive Director of Nepal Electricity Authority (NEA), who participated in the meeting, informed that Nepal handed recently completed DFS report to Bangladesh.

"There were extensive discussions about Sunkoshi III in both the joint working committee and the steering committee," he said. "After discussing the report of the project proposed to be made with the investment of the Bangladesh government, the latter will bring a proposal in the next meeting. It has been agreed that the meeting will make the final decision about it."

Spokesperson of the MoEWRI, Madhu Kumar Bhetwal informed that there is an agreement between the NEA and Bangladesh Power Development Board (PDB) to set up a joint company for the construction of the project. Such a company will be established within six months. According to Ghising, there is a possibility that the upcoming fifth round of meetings will be held within the next six months.

According to the feasibility study conducted by the Electricity Development Department, this project will be built at Lubhughat, which is at the border of Khanda Devi of Ramechhap and Temal village of Kavre. A 180 metres high dam will be built there. The reservoir of the project extends 45 km upstream.

The reservoir will be extended above Balefi Bazar towards the Sunkoshi River and upto Sipaghat towards the Indrawati River. Out of 2.356 billion units of electricity produced annually, 622.23 million units will be produced during winter. On Tuesday, the Bangladeshi delegation also made an on-site inspection of the project area.

Agreement on Nepal-Bangladesh electricity trade could also not be signed during the meeting considering the role of India. The best option for now is to use the Indian transmission line to take Nepal's electricity to Bangladesh. Apart from this, the construction of another transmission line is also being discussed as an alternative. But both options require positive cooperation from India so the meeting has decided to move forward with India.

Ghising informed that the meeting has decided that both the countries will continue dialogue with India through their respective mechanisms and to expand cooperation by holding tripartite meetings to realise the electricity trade between Nepal and Bangladesh.

Likewise, Bangladesh has agreed to purchase about 50 MW of electricity from Nepal immediately. For this purpose, the Indian transmission system will be used to wheel the energy to Bangladesh. The transmission line can flow about 50 MW energy now.

For this, a meeting among the NEA, Indian electricity trading company – National Vidyut Vyapar Nigam – and Bangladesh Power Development Board (BPDB) will be hold to finalise the modality of transmission.

Similarly, the BPDB has promised to buy and sell electricity within a month for the purchase of 500 MW of electricity of the GMR Upper Karnali Hydroelectricity Project.

Last month, Investment Board Nepal has given a deadline to GMR to complete the PPA within six months and complete the financial management within a year and a half. GMR had been saying that the electricity purchase and sales agreement with the Power Development Board has been reached at the final stage. GMR Upper Karnali Hydropower Company is advancing the process to sell electricity at 7.7 cents per unit.

Published in The Rising Nepal daily on 26 August 2022. Primary story by Gopal Chandra Subedi. 

Remove 'monorail' from development plans, house panel asks government

Kathmandu, Aug. 25

The Development and Technology Committee of the House of Representative has directed the Prime Minister's Office and Ministry of Physical Infrastructure and Transport (MoPIT) to remove the word 'monorail' from all projects concerned with railway transport development.

National pride project on rail, metro rail and monorail uses the technical term that has long been outdated from development planning globally.

"Since the term 'monorail' is removed from the development plan of many countries, Nepal should erase it from the projects concerned to railway development. It is inappropriate to allocate budget to monorail development projects," the committee said in its decision published on Thursday. However, a meeting of the committee had made the decision a day before.

The committee has also directed the government, MoPIT, Ministry of Finance and Ministry of Energy, Water Resources and Irrigation to give priority to the electrified railway in the days to come and immediately begin the work to develop the electric structure for the infrastructure.

Likewise, since the Kurtha-Jaynagar Railway is facing various problems as less attention was paid for the preparedness before the operation commencement about five months ago, the government should urgently establish fuel centre and maintenance workshop, and provide the required human resources, read the decision.

Meanwhile, the house panel directed the government including the Ministry of Forest and Environment (MoFE) to facilitate in the Detailed Project Report and environmental studies of the roads and bridges in the protected forest areas along the East-West Highway.

Road expansion work is underway at the Narayangadh-Butwal section of the highway which is the lifeline of business and transportation in the country. The road will be developed into a four-lane highway and service lanes. The house panel had conducted a discussion with the secretaries and officials of MoPIT and MoFE.

The committee expressed dissatisfaction over the delay in the progress of road expansion which should have been completed by now but it has achieved just about 19 per cent progress. 

Published in The Rising Nepal daily on 26 August 2022. 

Sailung Construction blacklisted, finally

Kathmandu, Aug.  24

The Public Procurement Management Office (PPMO) has blacklisted Sailung Construction Company barring it from participating in the bidding and implementation of any public construction and development work for three years.

This is the maximum period of moratorium for a construction company, according to the Public Procurement Act, 2007.

According to a notice published by the office on Wednesday, the company was blacklisted on the recommendations of the Directorate of Road Maintenance and Development Project as it filed to fulfill the obligation under the contract and complete the projects in time with the agreed quality standard.

The projects in question this time are Bhaktapur-Nagarkot-Sipaghat Road Project and Trishuli/Chhahare-Bidur Road Project which the company, in joint venture with an Indian construction firm, Aravali Infrapower Limited, couldn't complete in time despite repeated notice and warning.

Article 63(1) of the Public Procurement Act, 2007, maintains that if it is proved that the concerned company had committed substantial defect in implementing procurement contract or had not substantially fulfilled obligation under the contract or the work carried out according to the procurement contract is not of the quality as per the said contract, the PPMO can blacklist a bidder, proponent, consultant, supplier, service provider or even the construction entrepreneur.

Such blacklisting will be active for one to three years on the basis of the seriousness of the negligence or irregularity.

Earlier in September last year, Kathmandu Valley Road Improvement Project had warned Diwa/Sailung JV along with United Builders and Engineers for blacklisting as they couldn't complete the construction work as per the contract even after extension of the completion deadline. That time, Diwa/Sailung had faltered in 3.2km long Dholahiti-Sunakothi-Chapagaun Road expansion work.

Likewise, the company couldn't complete the Balaju-Tin Piple Road – a critical infrastructure to transport solid waste of the Kathmandu Valley to Banchare Danda in Nuwakot district. The Department of Roads (DoR) had decided to cancel the contract with the company about a couple of months ago but the latter went to the court to challenge the decision and was successful to get an interim order not to cancel the contract and blacklist it. However, the court gave a new verdict last week opening a way to blacklist the company.

The company is run by Sharada Prasad Adhikari, known as the 'landlord of CPN-Maoist Centre Chairman, Pushpa Kamal Dahal Prachanda', and his son Anup Adhikari. The PPMO has mentioned Anup's name as the concerned person of the company in the notice.

Sailung has also failed to complete the Kalanki-Nagdhunga and Kamalbinayak-Nagarkot roads expansion, and construction of three roads in Kapan of Kathmandu in time as well. According to the DoR, it has got multiple extensions in deadline but couldn't complete the project.

Likewise, the PPMO has blacklisted two Chinese companies - Zhongding International Engineering Company and Changqing Wangbian Electric (Group) Corporation Limited. Both of these are blacklisted for failing to complete the projects of Nepal Electricity Authority including Hetaunda-Bharatpur-Bardaghat Transmission Line Project. Both of these companies are blacklisted for three years.

Similarly, Baliya Construction, Johnson Construction and Suppliers, Just In Time Construction, Aspial Group of Engineers, Surgimed Distributors and Tumyehang Construction Service are blacklisted for a year while Mahalaxmi Wire and Cable Industries is blacklisted for 2 years and 6 months.

The office had earlier blacklisted Pappu Construction, Rujan-Jagadamba-Bhubaneshwari and Bhairav JV, Aakash and Pawan Construction, Shivaram/Siddgadhi JV, Aman and Isha Construction, Shia Construction along with about 100 others. 

Published in The Rising Nepal daily on 25 August 2022. 

Capital spending meagre in first five weeks

Kathmandu, Aug. 23

The challenge to spend capital budget is likely to persist in the current fiscal year 2022/23 as well, as indicated by first five-week figures of the Financial Comptroller General Office (FCGO).

Although the current budget was announced about six weeks before the beginning of the new fiscal year as per the constitutional provision, only 0.47 per cent of Rs. 380.38 billion allocated capital has been used up so far. It means only Rs. 1.79 billion is mobilised.

However, this is a slight improvement compared to the last fiscal year 2021/22 when the government had spent Rs. 1.07 billion – 0.29 per cent – of Rs. 378.09 billion development budget. Last year, only 57.18 per cent of the total capital allocation despite the Minister of Finance Janardan Sharma's promise to spend about 10 per cent of the total allocation each month since October last year.

That achievement was also made with a massive spending of Rs. 37 billion in the last week of the year which is against the budgetary and spending norms.

Meanwhile, achievements in the mobilisation of total budget have stood at 1.5 per cent, Rs. 26.82 billion. The size of budget for the current fiscal is Rs. 1793.83 billion.

However, this progress is backed by a good progress in financing – the budget for government investment and debt servicing – with about Rs. 15.11 billion spending of the total allocation of Rs. 230.21 billion. Only about 0.84 per cent (Rs. 9.91 billion) recurrent budget is used up so far.

Last year's budget size was Rs. 1632.82 billion. But there was a confusion about budget execution since the KP Sharma Oli-led government collapsed after announcing the budget and the succeeding government led by Sher Bahadur Deuba sought some amendments in it.

About two months of the fiscal were wasted in the process which badly affected the development works and budget mobilisation. But the government had collected more than 8.5 per cent revenue of the total target in the first five weeks of the year.

Nevertheless, despite more comfortable situation this year couldn't witness positive impacts on fund mobilisation.

Meanwhile, there has been 6.28 per cent progress in revenue mobilisation. The government has collected Rs. 88.07 billion revenue for Rs. 1403.14 billion annual target. Of the total collection, Rs. 78.15 billion is tax revenue and Rs. 9.91 billion is non-tax revenue. The government has received Rs. 790 million in grants during the period. 

Published in The Rising Nepal daily on 24 August 2022. 

MFIs pledge to consult customers to improve services

Kathmandu, Aug. 23

Nepal Microfinance Bankers' Association (NMBA) has said that they are ready for open discussion with the customer members and their representatives about the shortcomings, human errors or aspects to be improved by microfinance institutions (MFIs) while extending services and other programmes.

A conference of the chief executive officers of the MFIs held the other day in Dhulikhel, Kavre has said in a declaration that they are ready to implement reforms in the sector in coordination with the concerned stakeholders. This declaration has come in the wake of organised protests against the MFIs as ‘orchestrated’ by a group.

It has decided to request the Nepal Rastra Bank (NRB) to take necessary actions such as issuing notices to discourage such protests that are being carried out in the name of agitation by the illegally formed committee to fight against the MFIs.

"It has made difficult for the MFIs to provide microfinance services smoothly," read the declaration.

According to President of NMBA, Prakash Raj Sharma, the conference was organised to identify the policy and operational problems in microfinance sector and create a common opinion about the solution measures.

"This gathering regrets the misleading accusations, illegal and chaotic movement made by some vested interests against the entire microfinance financial institutions in the name of Struggle Committee against microfinance with the aim of defaming the sector and hindering access to finance while ignoring the role and contribution of microfinance institutions," read the declaration.

The association has   asked the NRB and Ministry of Home Affairs to check such activities, and, in response, the MoHA had asked all district administration offices to take necessary actions against the struggle committee.

According to the declaration, the MFIs have agreed that only three MFIs will mobilise loans to one customer, in order to prevent distortions caused by multiple loans and loans exceeding capacity.

A better monitoring will also be carried out to ensure that the borrower has invested the loan to the same business or activity that they had pledged.

Likewise, the conference gave emphasis to customer protection principles such as appropriate product design and delivery, prevention of over-indebtedness, transparency in information, fair and respectful treatment of clients, responsible pricing, privacy of client data and complaint resolution mechanism.

Meanwhile, the CEOs also agreed to hire employees only after consultation with the relevant microfinance institution, if they had to recruit one working in the sector.

Likewise, NMBA will keep the record of the employees dismissed due to irregularities and misconduct. 

Published in The Rising Nepal daily on 24 August 2022. 

Nabil to return 10 times the deposit in 20 years

Kathmandu, Aug. 23

Nabil Bank has launched 'Nabil Sure Fixed Deposit Account' with an attractive interest rate.

Customers can get double to ten times the amount deposited in the account after the specified time, the bank said in a statement.

This fixed deposit plan can be opened with the amount earned in Nepal or received as remittance.

"In case of the money earned in Nepal, the customers can get two times the deposited amount in 6 years 3 months 23 days, five times in 14 years 7 months 28 days and 10 times the amount in 20 years 11 months 20 days," the bank informed.  

Likewise, in case of the money received in remittance, the customers can get two times the deposited amount in 5 years 9 months 15 days, five times the amount in 13 years 5 months 11 days and 10 times the amount in 19 years 2 months 25 days.

Under this account, the customer can also get credit card facility of up to Rs. 300,000.

Published in The Rising Nepal daily on 24 August 2022. 

An Edifice Of Maps

 Border Expert Buddhi Narayan Shrestha has come up with a collection of maps as a proof of the Indian encroachment of the Nepali territory in Kalapani, Lipulek and Limpiyadhura of Darchula district.

India has not only been deploying its military forces in the region for the last six decades, but it has also unilaterally published a map in November 2019 including 372 square km area of Nepal in its territory.
Nepal immediately protested the 'unilateral' act and sent diplomatic notes to India but the latter exhibited an utter indifference and did not respond to the call. Instead it developed a road to Lipulek, Nepal-China border, and inaugurated the same road in May 2020. The Indian Minister of Defense, Rajnath Singh, inaugurated the road.
The Indian aggression irked all Nepalis and the country witnessed a national unity in getting back the encroached land. The government also formed a team to collect the evidence to present as proof against the encroachment.
But Shrestha has individually collected dozens of maps from across the world since ancient times to present as the proof that Kalapani region and Limpiyadhura are Nepali lands. In his own words the book presents 'map as a proof to resolve the border issue, interpretation of maps, determination of the origin of the river, supporting documents to settle the boundary dispute, cartographic distortion and territorial aggression'.
The book is a precious collection of 90 different maps that tell stories against the Indian occupation of Nepali land. The writer has presented the greater Kalapani region in 44 different maps that are zoomed in on the location.
Author Shrestha has given the details of the origin of the maps, their creation and interpretations which helps the readers to understand the meaning in totality. He has specifically complained about Nepali authorities' incapability to help him with the required maps and other supportive documents while writing the book while some Indian writers had included the same maps in their books. All the maps were individually obtained by the author from various universities, libraries and organisations from the United Kingdom, United States of America, China, India and other countries.
'Seema Naksa Sangraha' is a focused presentation of Nepal's boundary, especially at the north-western side. It has a chronological presentation of the events that unfolded after India published the map including Nepali land in its territory. Satya Mohan Joshi's testimony of preparing the first map of the country helps the readers to understand the things in a historical perspective.
Likewise, the book has a detailed history of the cartographic practice in and out of Nepal to prepare the map of the country. Since most of the maps were designed and printed in India, they were deliberately distorted at various points. Maps published by Survey of India till 1860 show the river originated from Limpiyadhura as the Kali River while the same river is named as Kuti Yangti and Lipu River was mentioned as Kali in later editions.
A century later, Indian cartographic distortion reached its peak as it showed a small stream that started from a local Kali Temple as the Kali River.
While Sugauli Treaty, 1816 marked the Kali River as the borderline between Nepal and India, a map published in 1819, immediately after the Sugauli Treaty, clearly showed the river (Kalee River) originated from Limpiyadhura. The map prepared by Surveyor Captain W. J. Webb is available at British Library, India Office Records and Collections. Similarly, another map published in 1827, according to the Act of Parliament by James Hurst Surgh Hydrographer to the East India Company, also clearly mentions the river from Limpiyadhura as 'Kalee River'.
Shrestha undertook a herculean task to collect the cartographic evidence from around the world to prove that Kalapani region, Lipulek and Limpiyadhura are Nepal's territory and encroached by India. In addition to it, the book features a letter from Yogi Narahari Nath issued in 1817 which had sent information to villages east of the Kali River then.
Another letter featured in the book is written by the chieftains of Garbyang, Gunji, Budi, Chhangru and Tinker villages to then Prime Minister Chandra Shumsher about 116 years ago demanding to remove the embargo on land transfer.
In response, Chandra Shumsher had written a letter directing the village chiefs to resolve the problem on their own in a just way. The latest evidence was the records of the land tax payment. People of Limpiyadhura had been paying the land tax to the Nepal government till 1967. The government had those documents but Garbyang village now is in Uttrakhand Province of India.
The book can be a slap on the face of India which is encroaching the territory of its smaller neighbour for the last many decades and shamelessly running propaganda machines in and out of India to cajole the public opinion in its favour.
The book needs to be translated into English and Hindi as soon as possible and distributed in the international market. Although the printing of the book is clean, the crucial maps should have been printed in colour. Many maps are difficult to read and the reader should depend on the explanation made by the author. 

Published in The Rising Nepal daily on 5 February 2021. 

Traders worry about disturbed supply from China

Kathmandu, Aug. 21

As China extended lockdown in Tibet Autonomous Region, worries of traders and importers in Nepal have amplified.

The expanding COVID-19 infection in Tibet and subsequent lockdown has affected the goods import targeting the upcoming festival season. Nepal-bound containers are stuck there since August 10. The lockdown was first implemented for a 3-day period and extended multiple times.

According to the traders, about 150 containers are waiting to enter Nepal from Rawuwagadhi and Tatopani border points, the two bilateral trade routes between Nepal and China.

Nepal National Federation of Entrepreneurs (NNFE) on Sunday urged the government to take initiative to resolve the problem and facilitate the smooth cross-border movement of goods from China to Nepal.

According to it, while the entrepreneurs are facing challenges to import goods due to the shortage of foreign exchange, the failure to bring goods to Nepal might cost them dearly. If the situation on the northern border persisted for long, many entrepreneurs-traders will be forced to leave their business, it said.

President of NNFE, Kumar Karki, said in a statement that the organisation's attention has been drawn to the stopping of goods from China to Nepal, and no export from the latter to the northern neighbour. "Although the bilateral trade relations between the two countries have been cordial since long, there have been some problems at the Tatopani and Keyrung border points for a while," said Karki.

President of Nepal Foreign Trade Association, Sunil Bansal, said that although the goods are stuck due to the coronavirus pandemic, the entrepreneurs here have begun to face crisis. While there will be a delay in the arrival of the festival-targeted goods, there is a risk of the damage of the perishable goods such as apples.

Entrepreneurs have urged the Ministry of Industry, Commerce and Supplies (MoICS), and Ministry of Foreign Affairs (MoFA) to help in the matter. Spokesperson of the MoICS, Dr. Narayan Prasad Regmi, said that the ministry is aware of the situation and government has already communicated about the situation and concerns to the Chinese side.

"Tibet is under lockdown which is an untoward situation. The ministry has communicated with the concerned authorities in China," he said.

Meanwhile, there have been zero exports from Nepal to China through Tatopani and Rasuwagadhi border. Exports to China have been continuously disturbed since the COVID-19 erupted in China in December 2019.

In the last fiscal year 2021/22, Nepal imported goods worth Rs. 26.62 billion from China through Rasuwagadhi and Rs. 14.02 billion from Tatopani.

Nepal witnesses the trade deficit of Rs. 163.97 billion. Nepal imported goods worth Rs. 264.78 billion from China and exported goods of just Rs. 808 million. The export value to India in the last fiscal is Rs. 155.22 billion, to United States is Rs. 17.99 billion, to Canada is Rs. 1.12 billion and to Australia is Rs. 1.16 billion. 

Published in The Rising Nepal daily on August 22, 2022. 

Realme launches 9Pro 5G and C30 in Nepal

Kathmandu, Aug. 21

Realme has unveiled 9Pro 5G and C30 - the newest addition to its entry-level C Series phone - in the Nepali market on Sunday.

The Realme 9 Pro 5G features a light shift design, including powerful batteries, class-leading processors, a powerful 5G chipset, and will come with Realme UI 3.0 based on Android 12.

The 5G smartphone with stellar cameras, is powered by a Snapdragon 695 5G processor and features a 120Hz ultra smooth full HD display.

It sports a 64MP triple camera setup, and a side-mounted fingerprint sensor. The 16MP wide-angle front camera on 9 Pro 5G ensures that no one misses out on group selfies, said the company. The front camera on Realme 9 Pro 5G also comes with a super nightscape mode, and portrait bokeh mode for selfies as well as HDR for videos.

The phone has a 5000mAh battery which is further supported with a 33W dart charging solution, enabling the smartphone to charge up to 50 per cent in just 27 minutes. It costs Rs. 38,999 for 8/128 GB variant.

Realme C30 features a new ultra-slim vertical stripe design. The smartphone features UFS 2.2 high-speed flash storage that can provide up to three times faster data read-and-write speed to users, and is equipped with an 8MP rear AI camera, and a 5MP front camera shooter. It also has a 5000mAh battery. Its price ranges from Rs. 13,499 to 15,999. 

Published in The Rising Nepal daily on August 22, 2022. 

Women Chamber organizes digital marketing training

Kathmandu, Aug. 21

 Nepal Women Chamber of the Nepal Chamber of Commerce (NCC) has organised digital marketing training for women entrepreneurs.

The training was organised with the aim of supporting the production promotion and marketing of goods along with the development of information technology.

Thirty-four women and girls participated in the training that lasted for a week.

Speaking at the training conclusion programme, Urmila Shrestha, president of Women Chamber, said that the training was organised to make Nepali women participate in the economic activities and promote their products in an innovative way.

She said that the organisation has been holding training in various fields and will continue in the coming days.

Guna Keshari Pradhan, president of Women in IT, said that her organisation has collaborated with the Women Chamber to empower women.

In order to develop women's entrepreneurship, the chamber has previously organized photography, candle making and bakery training. General Secretary of NWC, Leema Adhikari, said that women's rights will not be ensured until they are financially capable.

Published in The Rising Nepal daily on August 22, 2022. 

'Agricultural exports can boost foreign exchange reserve'

Kathmandu, Aug. 20

Senior Vice President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, has said that the export of agricultural products should be increased to solve the problem of foreign exchange reserves. In the aftermath of the COVID-19, amidst growing imports, the country is facing external sector pressure and hard time to save depleting foreign exchange reserves.

Addressing the first Annual General Meeting of Nepal Broom Association (NBA) on Saturday, Dhakal said that the production and export of agricultural produce should be increased to boost the foreign currency accumulation in the country.

He said that he will take initiative as senior vice president of the FNCCI to develop agriculture and solve the problem it has been facing.

"I have heard that goods worth about Rs. 4 billion were exported from this sector formally and informally last year. It needs to be increased," he said.

He requested the NBA to prepare a list of the problems they have been facing and pledged to take up the issues to the private sector and government stakeholders to solve them.

He said that since Nepal is a landlocked country, there is a problem when importing and exporting any item so emphasis should be given to the development of agriculture, tourism and hydropower.

"If we can focus on only three things like exporting agricultural produce, promoting tourism and exporting hydropower, Nepal won’t have to rely on the remittance sector for foreign exchange as it is now," Dhakal said.

Published in The Rising Nepal daily on August 21, 2022. 

Printing entrepreneurs object to EC’s tender notice

Kathmandu, Aug. 20

Entrepreneurs and businesspersons involved in printing have protested the Election Commission's (EC) tender notice that sought about Rs. 40 million in annual transaction on an average in the past three years to be eligible to print the ballot papers.

They also warned that they would move to the court if the election body did not correct the notice.

"Many printing entrepreneurs will automatically be disqualified because of the provision of Rs. 40 million. This notice has come with the motive of listing a very small number of printing companies and getting unlawful benefits," Federation of Nepal Printers' Association (FNPA) said in the memorandum submitted to Chief Election Commissioner (CEC) Dinesh Prasad Thapaliya the other day.

They claimed that the clause will deprive the 'real printers' of the opportunity of taking part in the bid. "If the EC doesn’t correct the notice, we will be forced to knock the door of the court," read the document submitted to Thapaliya by the president of FNPA Bagmati Province, Bhakta Shrestha.

The delegation included the presidents of the district association of the federation in Kathmandu, Lalitpur and Bhaktapur.

They told the CEC that the provision was against the spirit of the Public Procurement Act and its bylaws.

The EC published a notice on Wednesday seeking to enlist the printers to procure the printing services for the elections of the members of the House of Representatives and Provincial Assemblies scheduled for November 20 this year.

However, the election body has set different criteria for respective works. A company having transaction of annual Rs. 10 million on an average in the past three fiscal years can take part in the competition to print colour and black/white voter lists, and voter's identity cards. It wants the printers having at least four digital colour printing machines in workable condition, punching machine with the capacity to punch 100 pages, and space enough to host four staff of the EC.

It has set the provision of Rs. 10 million for other printing works such as guidelines, cards and reports.

Spokesperson of the EC Shaligram Sharma Paudel said that there was no 'ill intention' in setting the provisions.
"We want to select capable companies that could ensure the timely delivery of the required goods. It is about having capable printers competing among them," he said.

According to him, the commission had put the same demand during the local level election held on May 13 as well.

CEC Thapaliya reiterated his commitment that the EC would devolve the printing responsibilities to the district election offices so that they could get the printing services from the local printers.

"The EC will procure all the services through a fair competition," he said.

Published in The Rising Nepal daily on August 21, 2022. 

NHPC Limited signs to develop two hydro projects in Seti

Kathmandu, Aug. 18

The Investment Board Nepal (IBN) has signed a Memorandum of Understanding (MoU) with an Indian government company, NHPC Limited, to develop the 750 MW West Seti and 450 MW Seti River-6 hydroelectricity projects.

Chief Executive Officer of the Office of the IBN Sushil Bhatta and Chairman and Managing Director of NHPC Abhay Kumar Singh signed the MoU at a programme organised in the capital on Thursday.

The document was signed in the presence of Prime Minister Sher Bahadur Deuba, Minister for Finance Janardan Sharma, Minister for Energy, Water Resources and Irrigation Pampha Bhusal, Minister for Industry, Commerce and Supplies Dilendra Prasad Badu and Chief Minister of Sudurpaschim Province Trilochan Bhatta.

The estimated cost of the West Seti project is US$1,320 million, and Seti River-6 will need about US$ 450 million.

PM Deuba, on the occasion, appreciated the cooperation of India in Nepal's development including in tapping the hydropower potential.

"Hydropower is one of the areas for competitive investment in Nepal," he said while maintaining that the construction of the two large energy projects will support in the multidimensional development in the Sudurpaschim Province.

PM Deuba also expressed his hope that the two projects would be developed in a timely manner and directed the IBN to make effective cooperation and collaboration. "I would like to express my commitment that the government of Nepal will facilitate the NHPC in developing the projects," he stated.

IBN’s CEO Bhatta said that both the projects are national priority projects and expressed his hope that the sincerity exhibited by the company so far would be continued in the days to come in order to complete the projects within the stipulated time.

Likewise, Singh pledged that every possible effort would be put in the development of the projects since they are connected with the sentiment of the people of west Nepal.

A meeting of the IBN chaired by Prime Minister Sher Bahadur Deuba on August 8 had approved the MoU to conduct feasibility study for the development of the two hydel projects, to be signed with the NHPC.

Earlier in May this year, PM Deuba and his Indian counterpart Narendra Modi, during the latter's visit to Lumbini on the occasion of Buddha Jayanti, had agreed to handover the two projects to Indian government run company for their development.

The two projects will be based in five districts in Sudurpaschim Province.

Nepal will get about Rs. 167 billion in royalties and taxes from the two hydroelectricity projects. Likewise, people in the project affected areas will get shares of the company. The regulated flow of water in the Seti River will also help in irrigating land in Kailai and Bardiya districts while at the same time, the projects are expected to support in minimising damages downstream caused by the floods in the river.

Both the projects will be developed in the same river basin at a distance of about 50 km. The two projects were showcased in Nepal Investment Summit 2019.

NHPC has already developed various energy projects, including solar and hydro energy,  of 7,500 MW installed capacity and is developing projects of the same capacity. 

  Published in The Rising Nepal daily on 19 August 2021.

MCC project to begin from August 2023 after three-year delay

 Kathmandu, Aug. 18

The Millennium Challenge Account Nepal (MCA-N) informed on Thursday that the transmission line and road upgradation projects funded by the Millennium Challenge Corporation of the United States of America will begin in August 2023.

The project was supposed to enter into force on 30 June 2020 as planned a year earlier but the deadline couldn't be met as the parliament couldn't ratify the programme as mentioned in the bilateral agreement signed between the governments of Nepal and the USA in 2017.

The project was mired in a controversy before it got ratified by the federal parliament as some groups blamed for its association with the Indo-Pacific Strategy (IPS) – a US military programme in the region.

However, with the ratification of the project in February this year, the MCA Nepal Development Committee has expedited the process to implement the programme.

"The tentative date of commencement will be a day in August 2023 and it will be completed in 2028," said Executive Director of the MCA Nepal, Khadga Bahadur Bisht at an interaction with journalists on Thursday.

MCC is a US government agency with whom the Government of Nepal has signed an agreement to implement a US$ 630 million programme to construct large transmission lines, including Butwal-Gorakhpur cross-border transmission facility, and rehabilitation of strategic roads. Of the total cost of the project, $500 million will be funded by the MCC and $130 million contributed by Nepal.

 

Titled as the New Butwal-Gorakhpur Transmission Line, the project is the second cross-border line after Dhalkebar-Mujaffarpur that will help in energy exchange and trade. The project was envisioned in 1996.

The three-year delay is likely to cost additional administration and management cost of US$ 6.45 million.

According to Bisht, the MCC model has a robust preparedness plan and allocates sufficient time and resources for it so that the implementation could move forward smoothly. About 12.5 per cent of the total budget would be spent on pre-Entry Into Force (EIF) preparations while implementation phase investment would be 87.5 per cent of the budget.  

Bisht said that the government has approved the Environment Impact Assessment report, and process has begun to cut the trees on the way to construct the transmission line. Meanwhile, of the 315-km transmission line, 30-km stretch is being re-surveyed to find if re-alignment is needed at certain locations.

"Tender document for transmission line is ready; it will be opened on the basis of international competition and MCC procurement guidelines," he said.

There will be 854 towers in 315km length of the transmission line. Earlier, the number of towers was set at 1,315 but to reduce the environmental and social impacts of the project, height of the towers is increased and number reduced.

Likewise, about 77km road from Dhankohla to Shiva Khola in Dang district will be rehabilitated. To support this development, MCA-N has established a laboratory at the Department of Roads to find better solutions.

The project is supposed to create 7,300 full time employments during the project period. According to the MCA-N, other benefits to the country will also include using local construction materials and services, technology transfer and social inclusion.

Similarly, in the long-run, there will be improvement in reliability on national transmission line, expansion of economic investment, increment in government income, creation of employment at the local level, and reduction in greenhouse gases.

Meanwhile, Bisht said that there will be no research in the project, and new technology and tools will be used. All documents will be published online and they will be the property of MCA-N.

  Published in The Rising Nepal daily on 19 August 2021.

Preparations being made to conduct Yangon-Kathmandu flight

 Kathmandu, Aug. 17

Preparations are at the full swing in Myanmar to conduct flight to Nepal from Yangon, informed Ambassador of Myanmar to Nepal, U Sein Oo. 

A proposal to conduct flight between Yangon to Gautam Buddha International Airport is sent to the government of Myanmar, he said while speaking at the 12^th Annual General Assembly of the Nepal-Myanmar Chamber of Commerce and Industry (NMCCI) here on Wednesday.

Meanwhile, Nepali tourism entrepreneurs and business community are urging to start aviation services between the two countries at the earliest.

This year marks the 62^nd year of the establishment of the bilateral relations between the two countries which happened in 1960. The NMCCI was established in 2011 while its counterpart in Myanmar was established in 2018.

Ambassador Oo said that people to people relations have been already cemented.

"We are going to expand trade and economic relations as well as air connectivity between the two countries," he said.

Ambassador nominee to Myanmar, Harish Chandra Ghimire, said that there were immense possibilities to develop cultural, business and linguistic linkages between the two countries.

"Unity in diversity is the national mantra in both the countries while China and India are the neighbours of both the countries. Myanmar is also a bridge between the ASEAN and SAARC, it is a member of the former and observer of the latter," he said.

He maintained that Nepalis in Myanmar is the second largest diaspora which can work as a soft power in case of Nepal. Herbs and ayurvedic medicines can be prime products to export to Nepal.

"Our relations between people was deeply rooted for about one and a half century. Setting up bilateral chamber of commerce and citizen forums will certainly increase interaction, trade and cultural exchange," he said.

Meanwhile, the NMCCI has urged the governments of both the countries to establish direct air link between them in order to promote trade, investment and tourism.

President of NMCCI, Shiva Kumar Agrawal, said, "We want to boost the trade, investment and tourism in Nepal and Myanmar. Nepal should make certain arrangements to enhance them. There should be a direct air link between the two countries," he said.

Myanmar's chambers and business community has also suggested this time and again, he stated.

According to him, the NMCCI has the objective of promoting business and investment relations between the two nations in cooperation with the governments of their countries. "Our priority agenda also include enhancing export, and creating direct link to Myanmar," he said.

In the last Fiscal Year 2021/22, Nepal imported goods worth Rs. 2.41 billion from Myanmar while the export size was of only Rs. 86 million. Major exports from Nepal are herbs, pashmina, garment, synthetic fibres, wigs etc. while imports include beans, lentils, pea, pepper, rubber, veneer, and garments.

Himalaya Airlines had briefly conducted flight to and from Myanmar but the service ceases to exist now. Hence, Agrawal suggested that the national flag carrier Nepal Airlines Corporation should launch the service and promote it in both the countries. "We would like to request to the airlines companies from Myanmar as well as Himalaya Airlines to conduct flight to connect the two nations," he said.

Nepal can export food items, garments including pashmina, carpets, handicrafts and tea to Myanmar. Likewise, Myanmar can export beans, rubber, gemstones to Nepal. Since Nepal is a virgin investment destination, it offers lots of opportunities in investment in tourism, agriculture, industry, hydroelectricity and infrastructure and logistics where Myanmar businessmen can invest.

Agrawal also requested the governments of both the countries to materialize the objectives of the bilateral Agreement on Trade and Investment that they signed in 2018 during the visit of then State Counselor of Myanmar, Aung San Suu Kyi. The agreement had clause to facilitate bilateral investment and trade primarily in food, tourism and cultural exchanges.

Since about 88 per cent population of Myanmar follow Buddhism, Lumbini, the birthplace of Lord Buddha, can be a prime attraction to many of them. At the same time, the Gautam Buddha International Airport in Bhairahawa has come into operation and regular flights are being operated from there.

Sunil Kumar Bansal, President of Foreign Trade Association, said that there is a possibility for the export of Nepali handicraft products.

Lokmanya Golchha, former Dean of Consular Corps, stressed on strengthening bilateral trade relations between the two countries saying that it was way below being satisfactory so concerns should be paid to the growing trade deficit. "We can attract many Myanmar tourists to Lumbini and the Buddha Circuit," he said. He recalled the Memorandum of Understanding signed by the Nepal Chamber of Commerce, of which he previously served as the vice-president, with the Myanmar Chamber of Commerce and Industry to promote bilateral trade and investment.

Rajesh Kumar Agrawal, Vice-President of the Confederation of Nepalese Industries (CNI) said that prior to COVID-19 pandemic about 35,000 Myanmar tourists visited Nepal annually, so there was a need to tap on this potential in the days to come. Government and private sector initiatives are needed to promote Nepal in the international market, including Myanmar. 

  Published in The Rising Nepal daily on 18 August 2021.

Agrawal unanimously reelected as NMCCI president

Kathmandu, Aug. 18

 Nepal-Myanmar Chamber of Commerce and Industry (NMCCI) has unanimously relected a new working committee under the chairmanship of businessman Shiva Kumar Agarwal.

The 12^th Annual General Meeting of the binational chamber held in the capital the other day re-elected Agarwal as the president, while Ratan Lal Kedia was elected as the senior vice president of the organisation and Mohan Bir Thapa as the vice president.

Similarly, Subhashkaji Shrestha was elected as the general secretary, Amrit Khadka as the secretary and Lakshmi Prasad Subedi as the treasurer.

Pawan Kumar Agarwal, Mohanlal Daruka, Ram Chandra Khetan, Raj Lama, Pradeep Kumar Rungta, Srijana Subedi and Mukunda Prasad Timilsina have been elected as members of the NMCCI.

All of them were elected unopposed.

President Agrawal said that NMCCI will put its efforts in enhancing trade, investment, tourism and cultural relations with Myanmar. 

  Published in The Rising Nepal daily on 19 August 2021.

FM Sharma pledges to solve water supply crisis in Dharan

Kathmandu, Aug. 16

Finance Minister Janardan Sharma Prabhakar has said that the federal government is committed to providing necessary support to solve the drinking water problem of Dharan Sub-metropolitan City.

During a meeting with Mayor Harka Sampang of Dharan at the former’s office in Singha Durbar on Tuesday, Minister Sharma assured that after completing necessary technical preparations, the federal government would support the latter to raise necessary budget to complete the water supply project.

Minister Sharma highly appreciated Mayor Sampang and his team for the mobilisation of people to solve the water supply problem in Dharan. "What you did to address the acute shortage of water supply in the city is an exemplary task," Sharma said.

Likewise, Mayor Sampang said that water supply was the major problem in Dharan and the help of the federal government was needed to solve it. "The Federal Government is our guardian, please help us to solve this problem which is troubling the people," he said.

Sampang was accompanied by Aindra Bikram Begha, Deputy Mayor of Dharan, during the meeting.

  Published in The Rising Nepal daily on 17 August 2021.

Citizenship Bill returned to House

Kathmandu, Aug. 14

President Bidya Devi Bhandari has returned the bill to amend the Nepal Citizenship Act, 2007 to the House of Representatives of the federal parliament on Sunday.

The Office of the President said in a statement that the President returned the bill to the parliament citing a need to ‘reconsider’ the provisions for obtaining the citizenship.

The bill was passed by both the Houses of the parliament and approved by the Speaker of the HoR, Agni Prasad Sapkota.

 The House of Representatives had endorsed it on July 22 while the National Assembly approved this on July 28

 The Bill was submitted to the House of Representatives by the present government on July 8 by withdrawing the old ones which had been  pending in the federal parliament since August 2018.   

  Published in The Rising Nepal daily on 15 August 2021.

Local governments earn only 7.22 per cent internal revenue

 Kathmandu, Aug. 14

It seems that the local bodies have a long way to go to obtain independence from their own revenue mobilisation.

The recent report of the Office of the Auditor General (OAG) said that the local governments could only earn 7.22 per cent (Rs. 35.62 billion) of their total income in the Fiscal Year 2020/21. The 753 local bodies in the country received Rs. 493.03 billion including the grants from the federal government in that year.

Their major income includes Rs. 75.63 billion from the savings of the previous year and Rs. 73.40 billion from revenue sharing. They had estimated to receive about Rs. 203.17 billion income other than the grants from the federal government.

According to the Auditor General, many local bodies have not clarified the reduced amount while transferring the funds from FY 2019/20 to 2020/21. It said that 167 local governments did not disclose the reasons of the reduced responsibility transfer of Rs. 2.27 billion.

Likewise, their accounts show about Rs. 684 million less amount in the respective bank accounts. The national auditing body has suggested to control the practice to approve the budget with unallocated amount. Such amount would be distributed by the decision of the executive of the respective local body, spent mostly in the one-time projects and programmes, and fiscal discipline is not maintained.

The OAG audited Rs. 993.59 billion amount spent by 744 local bodies in 2020/21. Including the due of the 55 local bodies from the previous year, the amount increased to Rs. 1051.9 billion. Of that amount about Rs. 41.19 billion has remained as arrears.

In that amount, Rs. 5.60 billion needs to be recovered, Rs. 30.79 billion needs to be accounted while Rs. 4.79 billion is the money taken in advance and deadline of which is already crossed.

 Published in The Rising Nepal daily on 15 August 2021.

Pakistan Embassy celebrates 75th Independence Day

Kathmandu, Aug. 14

On the occasion of the 75th Independence Day of Pakistan, the Embassy of Pakistan in Kathmandu organised a flag hoisting ceremony on Sunday.

Ambassador Syed Haider Shah hoisted the flag on the embassy premises. Embassy’s Officers and officials and Pakistani community attended the ceremony.

Messages of president and prime minister of Pakistan were read out on the occasion, said the embassy in a statement.

Addressing the flag hoisting ceremony, Ambassador Shah recalled the history of Pakistan movement under the leadership of Quaid-i-Azam Muhammad Ali Jinnah. 

 Published in The Rising Nepal daily on 15 August 2021.

Branding local liquor can boost tourism, expand economy

Kathmandu, Aug. 13

Nepal imports alcoholic beverages worth more than Rs. 1.5 billion a year. However, illegal import and gifts could increase the amount. Meanwhile, 'Chyang' touted as indigenous alcohol is being imported from China and South Korea.

But producing alcohol other than for religious and domestic purposes is illegal in the country. Nepal police destroys millions of litres of home-made liquor every year in Nepal. For example, it destroyed 10,000 litres of illegal alcohol and 80,000 litres raw materials in Gadhimai Municipality in Bara district. According to the police, it had seized the items from various houses and taverns in Ward No. 3 and 10 of the municipality. Interestingly, police found concrete underground tanks with the capacity of about 12,000 litres especially made to store liquor at a house there.

Even in the Kathmandu Valley, police have repeatedly confiscated and destroyed tens of thousands litres of home-made alcohol.

While this tussle continues, indigenous communities have long been demanding to legalise the production of home-made liquor. In a progremme last week, representatives of indigenous women groups expressed strong dissatisfaction over the branding of local alcohol fearing that large corporations and multinational companies might hijack the traditional skill and knowledge from the communities.

The liquor making skill that we have now is being handed over to new generations since time immemorial, so the indigenous women should have exclusive rights to it, President of Indigenous Women Rights Forum, Suni Lama.

However, indigenous women suggested to provide the patent rights of local liquor to the communities, before branding the product. Otherwise, it will have a direct impact on the local economy, job creation and entrepreneurship.

They suggested creating an environment to promote micro-breweries in Nepal as a solution to expand the skills, market, entrepreneurs and local economy.

 

Chance to have Nepali drink

Many countries have made their beverages national drinks such as French wine, German beer, Scottish whiskey, Russian Vodka and Irish scotch. Likewise, Japanese Sake, South Korean Soju and Chinese Baiju have created their international identity as well.

Social Entrepreneur and cultural expert, Anil Chitrakar, warned that Nepal should pay attention to securing the intellectual property (IP) of the indigenous food, drinks and other items, including home-made liquor.

"We have seen western countries creating trouble in Basmati rice and turmeric. Western scholars have won global awards for their researches on Nepal's community forests," he said. "Hence, we must be aware to protect our skill and knowledge."

According to him, producing local beer and other types of alcohol was also a technique of utilisation of food that would be excessive and damaged. "It increases the utility of food and add value to the food grain," said Chitrakar.

But obtaining license for liquor industry is not an easy task. Federation of Liquor Associations of Nepal (FLAN)'s President, Sonam Sherpa, said that while obtaining a permission for alcohol production is an uphill task, fulfilling the quality, land and technological standards is highly difficult job.

Expressing concerns over losing the traditional knowledge on liquor production, Sherpa suggested to legalise micro-brewery in the country.

However, large distilleries and breweries would not be happy about creating many micro-breweries, he maintained.

Likewise, President of Liquor Association of Lalitpur, Upendra Lakhe, said that there is a need to manage the skills and knowledge in the production of local alcohol. "Newar community has a sort of expertise on some of the drinks," he said.

Newari drink Aila has become an indispensable item in Nepali food serving in the restaurants and hotels in the Kathmandu Valley and elsewhere while Tongba – a famous drink in eastern hills – is served as a special item as well.

Government initiative  

Then Minister for Industry, Commerce and Supplies, Mahesh Basnet (2014 September – 2015 October) was the first leader to initiate licensing to micro-breweries to promote indigenous alcohol.

In 2015, the government had decided to allow restaurants to establish micro-breweries to support the growth of tourism industry and offer varieties of beer and alcohol to tourists. Operators of micro-breweries would get a license for the production after depositing Rs. 200,000 and ensuring the sales of at least 2,500 litres annually, however, they could sell a maximum of 2.5 million litres of alcohol a year.

However, there was a condition that the liquor couldn't be sold outside the restaurant premises.

"The government then had made preparations to implement the decision while the National Planning Commission was positive and conduct research for the growth of the sector," said Maheshwor Neupane the then Director General of the Department of Industry, and former Secretary at the Ministry of Home Affairs.

But, due to the lack of system to monitor such breweries, the project couldn’t take off. Neupane said that the Inland Revenue Department presented excuse that it couldn't monitor the growing number of small liquor producers.

Micro-breweries to support tourism and economy

Secretary of Nepal Chamber of Commerce and a liquor trader, Santosh Pandey, said that the country should develop a system to promote, facilitate and monitor the micro-breweries in the country. "Licensing the micro-breweries would be a solution to curb the illegal and sub-standard hooch that is sold at local taverns in the cities and villages," he said.

He maintained that since the producers need to adhere to the clean and healthy production guidelines, they will maintain purity in alcohol.

There are many who are the connoisseurs of local wine and alcohol in cities and ready to pay a good amount to buy quality product legally.

"It can be a niche product that would attract the interest of high-end tourists as well," said Pandey.

Meanwhile, while experts say that the promotion of micro-breweries would help to create employment and develop the local economy, there are no estimates about the expected results.

However, it is true that the country is losing millions of rupees in revenue due to illegal production and trading of alcohol. "Once it is legalised, the country will earn a good sum of money in revenue," said Pandey.

But the Industry Ministry said that there are no preparations recently to reinitiate the process to licensing the micro-breweries. A high-official at the ministry said that there have not been any activity to patent the indigenous alcohol or branding it. 

 Published in The Rising Nepal daily on 14 August 2021.