Norway offers to assist Nepal in building Transmission Lines

Norway is interested to help Nepal build electricity transmission lines and ultimately remove one of the major bottlenecks in evacuation and distribution of hydropower.

"We are ready to provide assistance to the Nepal government if it comes up with strategic plans to develop transmission lines in the country," Alf Arne Ramslien, Norwegian ambassador for Nepal, said at an interaction on ´´Norwegian assistance to Nepal in hydropower development: Challenges and Opportunities´ organized by Society of Economic Journalists Nepal (SEJON) on Tuesday.

Highlighting the importance of hydropower in the country´s development, Ramslien said erection of transmission lines is a major task to tap the country´s hydropower potentials. “There are challenges as well as opportunities in hydropower development in Nepal," Ramslien said speaking in the interaction on ´Norwegian assistance to Nepal in hydropower development: challenges and opportunities´ organized by Society of Economic Journalists Nepal (SEJON).

Stressing the need for political stability and policy consistency for economic development, Ramslien said the government should come up with strong plans if it wants Norwegian support to help build transmission lines. “The power trade agreement between Nepal and India is important to build North-South and cross border transmission lines," Ramslien added.

He also said the Norwegian government was ready to support Nepal in conducting feasibility study of different large scale projects.

“Our efforts will be on helping Nepal. We want to invest here as the country has comparative advantage in hydropower sector,” Ramslien said, adding that the Norwegian Embassy in Nepal is currently working on developing new plans to support Nepal in energy sector.

According to information posted on website of Norwegian Embassy in Nepal, the Norwegian mission is working on accelerated hydropower development, rural renewable energy development and technical energy development.

"The embassy is planning to enter into a co-financing agreement with the Asian Development Bank for development of transmission projects in Nepal," the Norwegian mission in Nepal has posted on its website.

Source: myrepublica (Feb 6th, 2013)

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Nepal offers huge investment opportunities-Ambassador of UAE

Non-resident ambassador of the UAE to Nepal Mohamed Sultan Abdalla Al Owais, speaking at a programme here today, said that Nepal offers a lot of opportunity to investors.

“In the last four years of my tenure in New Delhi, UAE has doubled its trade volume with India,” he said, adding that the UAE wants to replicate the same in Nepal too.

The New Delhi-based envoy said that a team of United Arab Emirates businessmen will visit Nepal soon to explore business opportunities.

Though UAE is largely known as one of the key destinations for migrant workers, the trade volume between the two countries has also been increasing in recent years.

Nepal had exported merchandise worth Rs 326.300 million to UAE in fiscal year 2010-11, according to figures of the Trade and Export Promotion Centre (TEPC).

UAE — the 29th largest trading partner of Nepal — had exported merchandise worth Rs 13.61 billion to Nepal in the fiscal year, the data revealed, adding that Nepal’s trade deficit with UAE stood at Rs 13.28 billion in fiscal year 2010-11.

Likewise, Nepal’s exports to UAE in 2012 stood at Rs 322.99 million, whereas it imported merchandise worth Rs 37.66 billion, according to the TEPC data. “On the basis of export volume, UAE is the 19th largest export destination of the country.”

The United Arab Emirates (UAE) is the largest supplier of gold to Nepal.

Nepal imported some 87.6 per cent of gold from the UAE in fiscal year 2010-11, the TEPC data revealed, adding that the country had imported gold worth Rs 9.95 billion from the UAE, out of the total gold imports of Rs 11.35 billion.

Likewise, in fiscal year 2009-10, the country had imported 68.4 per cent — Rs 28.5 billion out of the total import of Rs 40 billion — gold from the UAE.

Besides gold, major imports from UAE include edible oil, beverage, fuel oil, petroleum bitumen, and polyethylene, whereas Nepal exports large cardamom, woolen shawls, scarves, and mufflers, among others to the UAE.

“There is a need to enhance trade relations in the interest of both the countries,” the envoy said.

Nepal and the UAE entered into diplomatic relations in January 1977.

Likewise, the then Royal Nepal Airlines started its flight to Dubai in 1985 in transit to its European destinations. Currently, Etihad Airlines, RAK Airways, and Fly Dubai are some of the airlines of UAE catering to the needs of travellers, mostly migrant Nepalis to and from UAE, which is also one of the key sources of remittance inflow to the country.

Source: The Himalayan Times (Feb 4th, 2013)

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OMA Emirates launches subsidiary in Nepal

OMA Emirates — a leading global business solution provider in the Middle East — has announced the launch of its subsidiary OMA Nepal.

With the launch of OMA Nepal, the company based in Dubai brings its wide range of product and service offerings to the financial sector of Nepal, said group chief executive of OMA Emirates Niranj Sangal, here today.

The company provides cutting edge technology solutions in the area of card personalization, payment issuance and payment acquiring systems through a global delivery platform, he said, adding that the company has provided its service to Himalayan Bank in Nepal.

The pioneer of payment solutions of the Middle East has successfully completed the NanoSwitch for Himalayan Bank.

NanoSwitch is a fully integrated banking Switch and Card Management System (CMS) that is capable of managing ATM and Point of Sales devices and acts as the central interface for all payment and banking activities.

“With our in-house team of qualified and creative software developers, we provide a full fledged and flexible system that takes cognisance of the entire issuance and acquiring requirements of Himalayan Bank,” chief executive of OMA Emirates Niranj Sangal added. “Moreover, our indigenous solution is highly cost effective from the financial aspect of the project.”

“As one of the most prominent banks in the country, we have an ongoing need to modernize our banking systems and lead the way for other financial institutions,” said chief executive of Himalayan Bank Ashoke SJB Rana, on the occasion.

“The bank looks forward to a rewarding experience in our partnership with OMA Emirates in creating an indigenous NanoSwitch solution,” he said, adding that the complete guidance extended by OMA’s highly skilled professionals and ease of installation met the bank’s clear cut requirements.

“The implementation of the new system — that cost the bank $300,000 — will be completed by mid-March,” Rana said.

OMA Nepal is dedicated and fully committed to serving the different industries including the banking and finance sector of Nepal, according to the company.

“With OMA Emirates drawing huge success across several markets in the Middle East, Europe and Asian subcontinent, the company looks forward to attaining the same with the launch of its subsidiary OMA Nepal, in the country,” the company said.

OMA also plans to launch a full-fledged support, and Research and Development (R&D) centre to provide end-to-end service to its customers as it is aiming at providing Business to Consumer (B2C) services. “Its facility shall also provide support services to East Asian countries.”

Source: The Himalayan Times (Feb 4th, 2013)

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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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