Ncell to introduce mobile phone re-charge kiosks

Ncell is soon introducing a new facility that will help customers top-up their mobile balance through kiosks placed in different parts of the country.
Under the facility, customers can top-up their balance by inserting bank notes of Rs 20 denomination or above into inlet of such kiosks.

Issuing a statement, Ncell said the facility will be introduced in Kathmandu Valley shortly and will be expanded outside the valley later on. In the initial phase, Ncell plans to install 40 kiosks in different parts of the valley.

“Recharge kiosks will be the first facility of its kind in Nepal. It will ease and empower the customers greatly,” said Sanju Koirala, corporate communication director at Ncell.

Once the facility is introduced, customers will not need to rely on recharge cards alone to top-up their balance.

To recharge via kiosks, the customers should first choose language then select ´Ncell´ displayed on the screen and enter the 10-digit mobile number they wish to recharge.

“The machine does not return change money. Hence, customers must insert bank notes of the denomination they wish to recharge and press ´Pay´ key to complete the payment,” the statement said, adding: "In case of an unsuccessful transaction, which may happen due to technical error, the kiosks will not return cash or note. But the customers need not worry, for the machine will automatically complete the payment process once the system error is dealt with".

Source: myrepublica (Jan 30th, 2013)

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New NRB Rule allows Nepalese Nationals to get foreign loans of up to $200,000

Nepalis can now legally acquire zero-interest loans of up to US$ 200,000 (about Rs 17.29 million) from individuals, relatives, organizations and institutions based abroad.

Nepal Rastra Bank (NRB), the central monetary authority, on Wednesday introduced the provision in line with commitment made through the Monetary Policy introduced in mid-July 2012, ending the ban put on Nepalese individuals from acquiring credit from a foreign country.

“The provision was introduced to facilitate individuals who want to start or expand their businesses with money borrowed from those based in foreign countries,” NRB Executive Director Lila Prakash Sitaula told Republica.

In order to acquire loans from abroad, individuals first have to obtain permission from the central bank.

“For this, borrowers will have to submit loan utilization plan and provide information on type of business they are currently doing or are planning to set up. They will also have to establish their loan repayment capability,” NRB said.

Along with these, borrowers will also have to show that no interest is levied on the credit that they are getting.

However, the central bank has acknowledged that it may not be easy for it to ascertain conditions on which individuals have obtained loans from abroad. “To prevent exploitation of this loophole, we have decided to allow borrowers to remit only the principal amount once the loan tenure expires,” a high-ranking NRB official said.

NRB has said repayment period of such loans should be at least five years and the credit should enter the country through a formal channel.

Source: myrepublica (Jan 31st,2013)

New NRB Rule-Nepal might experience increased remittance inflows

Remittance inflow might see an increase as commercial banks can now open a liaison or representative office outside the country.

Commercial banks that have fulfilled the basic criterion according to the central bank’s rule can now open a representative or liaison office outside the country, Nepal Rastra Bank (NRB) said today.

They must, however, have minimum basic paid up capital, been maintaining one per cent more buffer capital since the last one year, have Non Performing Assets of less than five per cent for the last three years, and the central bank must not have penalized any of the directors within the last six months.

Those commercial banks that fulfill the criterion must first apply at the central bank with financials of the last three years, declaration of its capacity to abide by the regulation of the regulatory authority of the concerned country where they are willing to open a representative or liaison office, besides a feasibility study and the bank’s board decision, said Nepal Rastra Bank that will permit banks with time restriction, if the applicant fulfills all the criteria.

Commercial banks must get approval from the concerned country’s regulatory authority within six months and a final approval from the central bank to open a representative or liaison office that must come into operation within six months and they must inform the central bank.

“Commercial banks must take approval from the Foreign Exchange Department of the central bank for the foreign currency needed to open an office in a foreign country,” NRB added.

Commercial banks have been asking the government and the central bank to allow them to operate offices outside the country.

Some of the commercial banks have, even, been planning to open a liaison office in the key remittance originating countries like India to officially channel in remittance through banks. Though a World Bank report has projected remittance inflow growth rate to slow down, a large chunk of remittance inflow from India has not yet been completely utilized through formal banking channels making it difficult to track its contribution to the total remittance.


Recently, Global IME Bank had sought the central bank’s permission to open a liaison office in New Delhi, India, to channel the remittance inflow through the bank.

The Monetary Policy has also promised commercial banks to allow them to open offices outside the country, though earlier, the Unified Directives 2010 had allowed only licensed institutions established with foreign equity participation to open a liaison or representative office according to the conditions stipulated by the central bank.

Source: The Himalayan Times (Jan 31st, 2013)

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Nepal experiencing negative Tourism inflow growth rate

Rising trade unionism backed by political parties has hurt the tourism sector, according to tourism entrepreneurs.

“Repeated strikes by politically backed trade unions have hit the tourist inflow growth rate,” said vice president of Thamel Tourism Council Ramsharan Thapaliya, addressing an interaction here today.

Tourists do not come to Nepal to remain confined to a room, he said, adding that guests come here to visit various sites. “But repeated strikes by politically backed trade unions have forced entrepreneurs to serve them in hotel rooms, which is not sending a good message.”

The country has witnessed a fall in the growth rate of arrivals in 2012 as compared to 2011 and 2010. According to figures from Nepal Tourism Board, tourist arrivals in 2012 increased by only 9.8 per cent to 598,204, as compared to 2011, when some 544,985 tourists visited Nepal. In 2011, arrivals had recorded a growth of 21.4 per cent as compared to 2010.

The government must create an environment whereby tourists can easily visit Nepal, said another tourism entrepreneur Khum Bahadur Subedi, on the occasion.

Despite the huge potential in the country to attract tourists, Nepal has not been able to exploit it, said president of Nepal Association of Rafting Agents Nanikaji Thapa. “The country has not been able to conserve cultural and natural heritages that are the key attractions for tourists,” he said, adding that the government must conserve them as tourism is the lifeline of the economy. “But due to the lack of a tourist-friendly environment, the country is losing billions.”


Likewise, tourism entrepreneurs, on the occasion, also asked the government to bring tourism favourable policies to promote the country, apart from adding aircraft for the ailing national flag carrier. “Due to the lack of aircraft with Nepal Airlines Corporation (NAC), the country is losing billions as international airlines have been enjoying the monopoly market,” they blamed.

Tourism secretary and newly appointed chairman of the corporation Sushil Ghimire consoled entrepreneurs saying that NAC will buy new aircraft in a few days. “The long wait of 25 years to buy aircraft is coming to an end,” he said, adding that NAC will get the aircraft soon.

Since the peak tourist season in the country lasts for only six months, the government must develop packages to expand it to throughout the year, suggested president of Trekking Agencies’ Association of Nepal Mahendra Singh Thapa. “There is cut-throat competition in the trekking sector which has fuelled illegal trekking, and the government must control that trend,” he said, asking the government to bring a security plan for tourists.

Source: The Himalayan Times (Jan 30th, 2013)

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Nepal Government to Offer Guidelines on Cooperatives Mergers

The Nepalese government is set to issue guidelines on cooperatives' merger by mid-January with a view to further managing and strengthening the cooperatives sector.

Currently, there are around 26,000 cooperatives operating across Nepal.

The guidelines are being prepared under the leadership of the Cooperatives Department with the objective of integrating the saving and cooperatives organizations in the urban areas and preventing them from financial bankruptcy.

Kedar Neupane, Registrar of the Department, said it was a working procedure rather than guidelines and the department was at the stage of issuing it within two weeks. Almost all processes for the cooperatives merger guidelines have been concluded, he added.

He said the big cooperative organizations have invested large amounts of their capital in the land and housing sector and the working procedure is expected to minimize the risk of financial crisis in these organizations.

There are some 11,000 cooperatives based in the urban areas and among those, around 5,000 are operational in Kathmandu, Lalitpur, and Bhaktapur districts.

As many as 60,000 people are directly employed by the cooperatives whereas around 600,000 have benefited from them. The total capital of the cooperatives has currently reached Rs. 250 billion.

Source: The Himalayan Times (29th Jan, 2013)

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Nepal Offers Massive Return for Investors

Despite its share of problems, Nepal is offering good returns to the investors, according to the president of FNCCI.

Inviting the potential investors to invest in Nepal during CII Partnership Summit organised by Confederation of Indian Industries (CII) in Agra, India today, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Suraj Vaidya said that Surya Nepal — the subsidiary of ITC — has continuously been the highest corporate tax payer in Nepal and has undertaken a massive expansion process.

“Unilever pays the highest dividends, whereas a Norwegian company — which was the first to invest in hydropower in Nepal — has taken back returns many times its original investment,” he said, citing an example of the Ncell — subsidiary of TeliaSonera — that has pumped $500 million investment in the last four years. “The Daburs, Asian Paints and Dansburgs all are doing exceptionally well in Nepal.”

Despite the region having huge potential for energy, it is still power-starved, Vaidya said, urging the South Asian regional leaders to join hands in harnessing sources of energy like hydropower and gas.

“The region cannot progress without harnessing hydropower that is estimated to have a shortfall of 50,000 Mega Watt (MW),” FNCCI president said, urging the SAARC states to join hands in exploiting power, connecting regional transmission grids and devising mechanisms that allow trade in power freely across the borders.

However, lack of seriousness on the part of governments of the Southasian countries to pursue regional cooperation and free flow of goods, capital and people has resulted in low share of intra regional trade, he added.

“The intra SAARC trade is still hovering around six per cent which is way below the similar figures for other regional blocks like ASEAN (28 per cent), European Union (58 per cent) and NAFTA (62 per cent),” he said, presenting a paper on ‘South Asia Economic Integration: On a New Path of Progress and Hope’, during the summit.

“It shows that the trade in the region over the last 15-20 years is almost stagnant,” he said, adding that South Asian Association for Regional Cooperation (SAARC) though came into existence in 1985, trade and economy were not in the forefront during the initial years pushing the intra-regional trade backwards.

“Still in many South Asian countries, there is widespread poverty, underdeveloped infrastructure, poor connectivity, visa woes, preoccupation with security anxieties and political instability that have hit our joint aim of creating a customs union and common currency eventually leading to a South Asian Union as envisaged by the leaders of SAARC member states.”

Vaidya said that the region’s efforts should focus on restructuring, revitalizing and re-energizing SAARC that could function as a common stage for hopes and aspirations of the people of South Asia as a symbol of an emerging, economically vibrant, politically important and strategically crucial region.

However, connectivity is key in the joint prosperity of the region, he opined, adding that building and upgrading connectivity between the South Asian member countries will be the first and foremost step towards the new path of common progress and hope.

“Connectivity through land, water and air is a must for any business to materialize as easy movement of people, goods and services across borders in South Asia would benefit the general mass with a real progress in trade and economy,” he added.

Source: The Himalayan Times (Jan 29th 2013)

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Nepal's rising trade deficit to have adverse impact on economy

Ministry of Commerce and Supplies has stressed on the need to move forward bringing all pending issues on table to tackle widening trade gap with its southern and northern neighbours.

Concluding that the trade deficit between the two countries will have adverse impact to the country’s economy, the ministry has asked experts to float ideas on reducing the ballooning trade deficit.

India is a major trade partner of Nepal, an official at the ministry said, adding that the country had a total trade worth Rs 372.30 billion — export of Rs 50.93 billion and import of Rs 321.34 billion — with India alone in the fiscal year 2011-12.

The trade deficit with India stood at Rs 270.41 billion, which is 63.8 per cent of the total trade deficit of the country, the ministry data revealed.

Trade deficit with the northern neighbour China has also seen a gradual increase in recent years. The country has imported goods worth Rs 53.90 billion from China in 2011-12 against Rs 46.38 billion a year ago in 2010-11.

The government should identify exportable items and promote exporters to be engaged in trade activities, the official at the ministry said, adding that simplification of modalities for traffic-in transit and removal of non-tariff barriers and administrative hassles will help increase exports and substitute imports that has also been sky-rocketing in recent years mainly fueled by remittance.

The government should step up its efforts in improving the export volume of agricultural goods including leather, ginger, tea, herbs, toothpaste, textile and handicrafts, the official opined.

India, US, Bangladesh, China, Germany, UK, Japan, France and Italy are the main importers, he said, suggesting the government to identify new destinations to expedite export of Nepali goods.

Source: The Himalayan Times (Jan 27th 2013)

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US-based companies set to invest in Nepal

A New York-based company promoted by Nepalis has joined hands with a Chicago-based company to provide clean and sustainable energy in Nepal.

The New York-based Nepal Infrastructure Consult (NIC) and Chicago-based renewable energy company New Generation Power (NGP) have signed a Memorandum of Understanding (MoU) aiming at enhancing infrastructure and clean energy projects in Nepal.

The New Generation Power aims at providing clean and alternative energy across the world, whereas Nepal Infrastructure Consult will represent the project and liaison with appropriate government, non-government and bi-lateral agencies on behalf of NGP in Nepal, according to president of NIC Suman Neupane.

The New Generation Power and its partners — Panasonic, Martifer Solar, Patriot Solar, Jones Lang LaSalle, Eaton Corporation, Toshiba and Talesun — have commissioned renewable energy projects in the fields of solar, biomass, wind, hydro, waste to energy and geo-thermal energy in various parts of the world.

Over 200 MW of renewable energy projects constructed by them are currently in operation, whereas over 3,000 MW of renewable energy projects are its pipeline in many parts of the world. The NGP, in partnership with Wanxiang America Corp, is also developing a 62MW solar facility adjacent to the Rockford International Airport in Rockford, Illinois in the US.

Likewise, Nepal Infrastructure Consult — established with an objective of bringing potential small, medium and big investors in the United States linking project holders, entrepreneurs in Nepal — aims at helping its clients bridge the gap between their infrastructure needs and financial resources by focusing on public private partnerships and innovative capital financing.

Chairman Dr Chirinjeev Kathuria and senior vice-president (International) Nisha Joshi of NGP and president of NIC Suman Neupane signed the MoU on behalf of their respective institutions.

Source: The Himalayan Times (Jan 27th 2013)

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Price of Gold per tola Rs.3600 more expensive than global price

The government's decision to raise customs duty on gold has made the yellow metal expensive in the Nepali market by Rs 3,600 per tola (11.664 grams) compared to the price in the international bullion market.

Before the revision, gold price difference between local and international market was Rs 2,750 per tola.

In a bid to control smuggling of gold to India, the government on Thursday raised customs duty on gold Rs 3,500 per tola from Rs 2,682 per tola. The government took the decision after India raised customs duty on gold to 6 percent from 4 percent effective from Monday.

Nepal Gold and Silver Dealers´ Association (Negosida) fixes the price of gold in the local market, calculating the value of US dollar against Nepali currency, import tax and profit margin for dealers.

"Though the government has increased customs duty to reduce price difference between Nepal and India, there is no guarantee that it will control gold smuggling from Nepal given the open borders,” said Tej Ratna Shakya, president of Negosida.

The fresh revision means Nepal´s customs duty on gold is Rs 120 per 10 grams more than the duty fixed by India.

Shakya said such a small duty difference would be simply insufficient to control gold smuggling to India which has been increasing in recent months due to shortage of Indian Currency (IC) in Nepali bordering towns. Smugglers sell gold to India to earn IC which they exchange in Nepal at inflated rates. Though official exchange rate of IRs 100 is Rs 160, IRs 100 fetches as much as Rs 168 in Nepali bordering towns.

“The government should have raised customs duty by at least Rs 1,000 per 10 grams. Higher price difference would have discouraged smugglers,” Shakya added.
Jewelers are facing shortage of yellow metal at a time when wedding demand is at its peak. According to dealers, they are getting only about 15 kg of gold from designated banks even though daily demand for gold hovers at around 40 kg.

Meanwhile, gold price remained unchanged at Rs 57800 per tola on Sunday even though its price in the international bullion market fell by US$ 8 per troy ounce (31.10 grams) on Saturday. The yellow metal was traded at $1,660 per troy ounce in the international bullion market on Friday.

The price of silver, however, went down by Rs 15 per tola. On Sunday, silver was traded at Rs 1,110 per tola.

Source: myrepublica (Jan 28th 2013)

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Gold Price set to increase

Gold will cost more during the ongoing wedding season as the government has increased import duty on the yellow metal by Rs 700 per 10 grams with effect from Friday.


The government revised the gold import tax on Thursday and raised it to Rs 3,000 per ten grams following the Indian government´s decision to increase import duty on the precious metal to 6 percent from 4 percent in the past.

The Indian government took the decision to raise the duty last Monday to curb imports of the yellow metal, which have been widening the country´s current-account deficit.

Nepal immediately followed suit as the Nepal Gold and Silver Dealers´ Association (Negosida) lobbied that the government do so to rein in smuggling, which has lately been blamed for shortage of the yellow metal in the domestic market.

Currently, the daily demand for gold in the domestic market stands at 30 kg to 40 kg, according to Negosida.

Source: myrepublica (Jan 26th 2013)

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Gurkha Development Bank Seeking Investors

Gurkha Development Bank (GDB) on Thursday issued a 35-day notice to potential buyers of its promoter shares in a bid to reduce the stake of its original promoters. The move follows a takeover of its management by Nepal Rastra Bank (NRB) for failing to show improvements after it was declared crisis-ridden.

GDB’s three major promoters — DB Bamjan, Rakesh Adukiya and Nirmal Gurung, all of whom are facing charges of banking fraud — own 45 percent of the bank. They and the other promoters hold a 60 percent stake in the bank. “The notice to sell shares was issued as per the mandate given by the central bank to ensure that the present promoters would not have influence in the bank in the future,” said Mukti Sapkota, a member of NRB’s management team at Gurkha. The central bank had taken over the reins of the troubled development bank on Jan 3. It was declared crisis-ridden in March 2011.

Sapkota said that the bank had not fixed any specific ratio by which the shares of the present promoters would be reduced. “This will based on the proposals received from prospective buyers,” he added. According to him, the share price will be determined through negotiations based on the value fixed by the ongoing due diligent audit (DDA) report. The DDA is expected to be completed within the next 40 days.

GDB has stated in a notice that persons facing charges under the Banking Offence and Punishment Act would not be eligible to purchase its shares. NRB has given three instructions to its management at GDB. First, reduce the stake of the current promoters by bringing outside parties. Second, if outside parties cannot be brought, go for a merger. If both options fail, the team has been told to recommend appropriate alternatives. “The last option could be to liquidate the company,” said an NRB official.

The new management has also made efforts to recover loans from 20 major borrowers. It has given them until Jan 28th to repay their loans with the offer of concessions. “A few of them have shown interest to repay their loans,” said Sapkota. “Stringent action will be taken against defaulters including seizure of their passports as per the Bank and Financial Institution Act.”

These 20 debtors owe GDB Rs 1.17 billion including principal and interest. “Promoter related loans amount to Rs 700 million,” said Sapkota. Most of the loans issued to these borrowers have been recognized as bad loans. “There are good loans worth around Rs 400 million too,” added Sapkota. The bank currently holds deposits of around Rs 2.16 billion while its loans stand at Rs 2 billion. Its capital adequacy ratio has remained negative, according to the development bank.

Source:The Kathmandu Post (January 25th 2013)

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Civil Trade Centre open for trading

Civil Trade Center (CTC), a shopping mall promoted by the Civil Group, was formally inaugurated on Friday, following a soft launch earlier on Monday.

Suraj Vaidya, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), inaugurated the mall amidst a function held at its premises.

Speaking at the inaugural ceremony, Ichhya Raj Tamang, president of the Civil Group, said the mall was a public property and nobody would be referred to as owner and worker at the complex. "Everyone will receive equal treatment at the mall," said Tamang.

The opening of CTC takes the shopping experience in Kathmandu a notch up and gives solid evidence of the real estate boom being experienced in the capital. In addition to CTC, the Civil Group also has in operation Civial Mall just a few blocks away.

Source:myrepublica (Jan 18th 2013).

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